The term Nazul is used for land owned by the local development authority for development purposes, according to the masterplan of the city. The authority either acquires or gets the land from the government. Therefore, Nazul land is situated within the municipal limits of the authority. The authority can either lease it or auction it in the open market to any institution or individual with the government’s consent. The government can also auction the property for developing a residential colony or educational institution. Every city has a land allotment committee that undertakes the work of auction and leasing of Nazul land.
In case your lease term is getting over, you can approach the authority to renew the lease by giving an application to the revenue department of the local development authority. However you cannot mortgage the nazul property if your lease period already expired, hence you may indemnify that you will undertake to repay in case the lease is not renewed provided the mortgagor agrees to it.
If you have obtained NOC for mortgage, then you should be able to proceed with the aid of this NOC. Nazul property is different from other property of the development authority, the meaning of the nazul property has been explained above.