• Sale of leased petrol pump land

Hi,
We r operating petrol pump on the said land from past 70 years, land has been last leased in 1997 for 35 years lease period, now we want to sell the said land, what is the procedure for selling that land.
Asked 11 months ago in Property Law
Religion: Hindu

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9 Answers

Please provide following details:

(i) whether pump is Dealer owned company operated or dealer owned dealer operated  or Company Owned Dealer Operated?

(ii) In above case provide details of termination clause 

(iii) Produce termination clause in verbatim 

Arihant Nahar
Advocate, Indore
130 Answers

4.8 on 5.0

 Obtain No Objection from respective oil company regarding aforesaid transaction. 

Arihant Nahar
Advocate, Indore
130 Answers

4.8 on 5.0

In Oil company records you are dealer .

 

if you want to transfer dealership oil company consent is needed

 

you can add buyer as minority shareholder 49 per cent in petrol pump . Then sell the land to him 

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

Later with oil company consent you can transfer your share to the buyer 

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

If the land is leased you can't sell the land only assign it to other party for future. 

Prashant Nayak
Advocate, Mumbai
28106 Answers
93 Consultations

4.4 on 5.0

You need to get an NOC from the oil marketing company whose outlet you are running now for transfer of business to the new entity. After expiry of the lease period, you may vacate the property.

Swaminathan Neelakantan
Advocate, Coimbatore
2152 Answers
20 Consultations

4.9 on 5.0

- Since, the said land is on lease , then without getting the approval and converted to free hold , you cannot sell the land. 

- You can apply to the lessor for getting the said land registered in your name after paying the required fee. 

- However, the business firm can be transferred to other after taking the permission from the oil company

Mohammed Shahzad
Advocate, Delhi
10324 Answers
124 Consultations

5.0 on 5.0

As per your contents the land for the operation of the petrol pump is on lease for 35 years  from 1997 and the lease period would expire only in the year 2032, therefore without cancelling the lease agreement you may not be able to sell the property. 

So first you may have  to cancel the lease agreement and evict the tenant  to deliver vacant possession to the prospective buyer.

 

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

You can’t transfer your petrol pump licence directly.

For doing so you have to file for Reconstitution of petrol pump licence. Now to be eligible for reconstitution, your petrol pump should be at least 5 years old and licence should not have been reconstituted for last 5 years (apart from the cases arising from death of proprietorship firm) .

Now apply for reconstitution at your territory/regional office in a prescribed form with all relevant documents, format of which can be collected from your sales officer.

In this reconstitution you can transfer maximum 49% ownership to the incoming party and you will remain minimum 51% owner.

After reconstitution is done get your new partnership firm registered with the same percentage ownership as filled in reconstitution form.

Now wait for 5 more years from the date of reconstitution and go for it again and now you can transfer full 100%.

This is the process to transfer your pump licence.

 

Simultaneously you may execute a registered sale deed on the buyer's name in respect of the land underneath the petrol pump.

 


You can’t transfer your petrol pump licence directly.

For doing so you have to file for Reconstitution of petrol pump licence. Now to be eligible for reconstitution, your petrol pump should be at least 5 years old and licence should not have been reconstituted for last 5 years (apart from the cases arising from death of proprietorship firm) .

Now apply for reconstitution at your territory/regional office in a prescribed form with all relevant documents, format of which can be collected from your sales officer.

In this reconstitution you can transfer maximum 49% ownership to the incoming party and you will remain minimum 51% owner.

After reconstitution is done get your new partnership firm registered with the same percentage ownership as filled in reconstitution form.

Now wait for 5 more years from the date of reconstitution and go for it again and now you can transfer full 100%.

This is the process to transfer your pump licence.

 

Simultaneously you may execute a registered sale deed on the buyer's name in respect of the land underneath the petrol pump.

 

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

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