Mutation of property in mcd

I bought a housing society flat in Delhi in the year 2000. I got it converted into free hold in the year 2004. I did not get the mutation done in the MCD records. I have been paying house tax every year in time.

Now, I have received a notice from MCD to get the mutation done. When I visited MCD office, the officer informed me that I have to pay 3% transfer duty at the current circle rate.

I want to know - do I need to pay this transfer duty when my flat is already free hold.

If I do not get the mutation done in MCD records and keep paying the house tax, what are the implications.

Regards

Rajnesh Khurana