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Mumbai has witnessed a significant increase in the registration of gift deeds and wills following the Covid-19 pandemic, according to data from the Maharashtra government. The rise is attributed to a heightened sense of mortality among property owners, who are securing their families' interests in light of the uncertainties brought on by the pandemic.
A gift deed is a legal document in which a person voluntarily transfers ownership of movable or immovable property to another individual, called the recipient or donor. To be considered valid, the gift deed must be signed by both parties and registered at the local registry office.
A will, on the other hand, is a legal document outlining a person's instructions for the distribution of their assets after their death. Wills can be registered as per the provisions of Indian laws at the local registry office.
Data from the Department of Registrations and Stamps (IGR) reveals that gift deed registrations in Mumbai have grown annually since the onset of the pandemic in 2019. The number of gift deeds registered increased from 8,694 in 2020 to 16,322 in 2021 and reached 20,843 in 2022. In the first three months of 2023, 3,287 gift deeds were registered. The Maharashtra government amassed Rs 645 crore in revenue from the registration fees of 69,627 gift deeds between January 2018 and March 2023.
Similarly, will registrations have also increased during this period, with 5,636 wills registered in 2020, 9,591 in 2021, and 11,642 in 2022. In the first quarter of 2023, 3,091 wills were registered. The number of wills registered in 2018 and 2019 were 7,246 and 8,234, respectively.
Experts suggest several factors have contributed to the rise in gift deed and will registrations. The high number of Covid-related deaths has likely been a major trigger, prompting property owners to take legal measures to prevent disputes over assets after their passing. From a legal perspective, the surge in gift deed registrations may also be linked to the drop-in stamp duty rates during the pandemic.
In conclusion, the aftermath of the Covid-19 pandemic has led to a marked increase in gift deed and will registrations in Mumbai. Faced with the uncertainties of the pandemic, property owners are taking proactive measures to safeguard their families' interests and ensure the proper distribution of their assets. The reduction in stamp duty rates during the pandemic has also contributed to this trend, making it more affordable for people to secure their families' futures through legal means. The Maharashtra government's revenue from gift deed registration fees highlights the extent of this surge, and the notable increase in will registrations post-pandemic further emphasizes the impact of Covid-19 on property owners' decisions.
Overall, the Covid-19 pandemic has resulted in a significant shift in how Mumbai's property owners approach securing their assets and safeguarding their families' interests. By registering gift deeds and wills, they are taking the necessary legal steps to ensure a smooth distribution of their properties and investments, thus reducing the chances of disputes after their demise. With the pandemic serving as a stark reminder of life's uncertainties, it is likely that this trend will continue as more individuals prioritize estate planning and asset management.
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