Don’t take the risk of buying a flat as it is shown as govt land and comes under prohibited list
as and when it is removed from govt website you can Purchase the flats
Property shown as 'Govt land' on Telangana state government website
Dear advocates, Iam planning to buy a flat in an old apartment building housing commercial spaces on ground floor and residencial flats on above floors. I went for due diligence and legal background check for the flat with my advocate. When the advocate checked the registration and stamp departments website he found out that the door number of the land on which the apartment was constructed comes under prohibited properties list. Reason was assigned as it comes under 'GOVT land'. I visited the SRO office today and checked the door number with them. They said that its not a GOVT Land in their records and by mistake its showing on the prohibited list on govt website. Moreover, this flat is located just opposite of where i have been living for two decades and many people have bought, sold both commercial and residencial spaces in this apartment without any trouble. Also i checked the encumbrance certificate of the apartment where i saw HDFC bank, federal bank etc has processed loans on some of the apartment flats and commercial spaces in the past. Keeping all this in view... can i go ahead to buy this flat? need ur guidance.
Asked 5 months ago in Property Law
Religion: Hindu
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8 Answers
It needs to be rectified first before buying the same
You say that you visited the registration and stamp duty department and also the SRO, whereas you have not mentioned whether you checked the same from the municipal/corporation revenue records to find the details of the of the land or its status as recorded in their records or you have not visited the government land revenue department and confirmed the status of the land from ther A register.
Even though it can be assumed that it may be an error but what is the proof to rule out that this not the government land.
If you want to take risk of losing your investment in future then you can proceed or better clarify everything properly and buy only if it is safe to buy.
my doubt is... if the property is a govt land ... -how some big banks like hdfc, sbi have given loan ? -how ptin of property tax is generated and tax being collected since so many years? -how permission to construct the apartment was given and OC issued after the completion got over few years back..?
Asked 5 months ago
Bank advocates have not done due diligence properly
OC must have been issued without checking whether it is govt land
wherein your hard earned money is concerned you should take zero risk
That’s a illegality and can be complained to relevant authorities
- Under the Telangana Assigned Lands (Prohibition of Transfers) Act, 1977. Rules Regulations , Prohibited Lands list (22 A) contains all those lands on which any development is restricted.
- However, the Telangana High Court refused to declare as invalid, Section 22A of the Registration Act, which restricts registration of certain ‘prohibited’ land, and held that a mere possibility of misuse would not invalidate the provision.
- Hence, you can enquire the said property from the office of the Registrar and Revenue dept before purchasing the same.
The builders are in collusion with the bank managers and get the loans sanctioned to the home buyers in order to promote their sales. This is prevalent in many places.
The builder would have managed the authorities concerned to somehow get OC for the building.
On the basis of the title documents the tax records might have been generated.
If this is really a government land then the builder might have managed many authorities by his corrupted acts.
You can ascertain the details and then proceed if you are satisfied.
Dear Client,
You can Request all relevant documents from the seller, including the title deed, approved building plan, occupancy certificate (OC), and any other relevant permits. Carefully examine these documents to ensure they align with the information provided by the SRO office. Verify property tax documents and receipts to ensure they have been regularly paid. This may indicate the property's legal status. Check with the local municipal office or relevant authority to confirm the permissions granted for constructing the apartment and the issuance of the occupancy certificate. Consider obtaining title insurance, which can protect you against potential defects in the property title. This insurance can provide coverage for legal expenses in case of a dispute. Banks do not provide loans on government land, mistakes can occur. Verify the loan documents, and check if there are any clauses related to the land's nature.
