Yes,
Yes but if permission not granted than recovery will an ordeal.
And land belonging to scheduled castes or tribes cannot be bought by non-dalits, including companies as such transactions are unconstitutional.
Agreement to sell with SC land owner in Uttar Pradesh
A company wants to enter into an ATS with an SC land owner with the condition that SC will apply for permission and registration of land will be done after permission is given by DM Is this ATS enforceable in law ? Can Company do an ATS with possession of land with substantial payment say 75% made to SC land owner and balance at the time of sales deed after the permission from DM ? What is the best way to do this transaction ? Regards Naresh Tandon
Asked 6 years ago in Property Law
Religion: Hindu
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13 Answers
Yes, it's enforceable, but making a payment of 75% in advance for the land belongs to SC is not advised as the transaction is unconstitutional and money can be steeped.
let him first take permission and then make payment
Agreement is enforceable in law
2) don’t make 75 per cent payment now
3) make 10 per cent now balance at time of execution of sale deed
@ajysethi Seller is not ready to get ATS registered @ 10 % and is asking for minimum 75 % payment Can we take possession of land as well by making this payment ?
Asked 6 years ago
Hi, you can make this a substantive agreement to sell ,in default of which the agreement shall stand cancelled ..It is also advisable to make all the initial payment in white ..
don’t make 75 per cent payment
2) you would not get refund of your money if DM refuses permission
3) you can enter into un registered agreement for sale with 10 per cent payment
@suneelmoudgil if this ATS is enforceable then why making 75 % payment makes it unconstitutional ? We will be doing final sale deed after getting approval from DM Can we take possession of land after making 75 % payment with the same condition of final registration on DM approval? Regards CA Naresh Tandon @yogendersingh Is entering an ATS with SC is unconstitutional as an ATS is not a sale When company is getting this ATS registered and clearly mentioning that sale deed will be done after DM permission then what is the legal complication in entering this ATS ? Regards CA Naresh Tandon
Asked 6 years ago
you can enter into agreement that balance payment would be made on receipt of permission of DM
2) SC land cannot be sold without prior permission of DM
3) in present case by taking possession of land on making 75 per cent payment you are trying to circumvent the prohibition of sale of land
A registered ATS is enforceable in law.
This is an uncertain dealing between the parties, hence the conditions that if the registration cannot happen then the booking or advance amount to be refunded may be included ion the ATS.
Taking possession of land may not solve the purpose because if the authorities deny permission to the seller to sell this property then it will be difficult to recover the amount a swell as you cannot remain in the property since you will be considered an unauthorised occupier which is illegal.
Therefore the registered ATS is always better
If the DM is not approving the sale of this SC land to a third party, then how will you be able to recover the amount given as advance?
Hence why give 75% now itself, you may think of the pros and cons before entering into the ATS.
Suppose the DM is not approving this sale, then this becomes unconstitutional, then what will be your position?
Yes agreement to sale which is registered is enforceable in law. Kindly check whether fhd said sc land is transferable or not. Some lands are mom transferable to others for sale consideration and some are only transferable to sc only.
Agreement is executing for a act which is not legal, hence lack enforceability and void.
Executing an agreement is not a criminal act, all am saying, if permission rejected, recovery will be tough. Rest your choice, can go ahead.
What if the DM refused to give approval? and the land belongs to SC.......
getting 75% money will be arduous job then,
do not involve big amount,
I am suggesting keeping in view your interest.
you can take possession but it will be at higher risk.