File writ petition in HC against GIDC decision to charge you 25 per cent tanager fees instead of 5 per cent
you had not sold the property but only mortgaged it to Religare
GIDC charging 25% Transfer Fee instead of 5% for 20+ years of lease ownership while transfer.
GIDC Lease Transfer Fee Dispute Subject: Challenge to GIDC's Lease Transfer Fee Calculation for our residential plot, Background: I entered into a 99 year lease agreement with GIDC for a residential plot located in GIDC residential area- District Valsad, Gujarat, in year 2004. In the year 2024, We found a buyer for the property and applied for property transfer at GIDC office. The lease agreement/transfer policy states a 5% transfer fee for properties under lease for over 10 years. The plot was subsequently mortgaged to Religare Finvest Ltd in 2016. They later transferred it to India Resurgent Fund ARC in 2019 due to financial difficulties. I was not informed about this internal transaction. After paying India Resurgent Fund ARC in full and obtaining property documents, I approached GIDC for a transfer to a third party. Dispute: GIDC calculated the transfer fee based on the 2019 transaction between Religare and ARC, and thus charging me 25% transfer fee as per their policy for holdings under 10 years. I argue that this internal financial transaction doesn't constitute a change in ownership or lease. The relevant period for calculating the fee should be from my original lease date (2004), qualifying for the 5% fee. I request your assistance in challenging GIDC's decision and urging them to: Recalculate the transfer fee based on the 2004 lease date (5% fee). Please advise on the validity of my claims and the best course of action. & suggest if any previous such cases were fought. Thank you for your time and consideration. Sincerely, Anuj Baid
Asked 1 year ago in Property Law
Religion: Hindu
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5 Answers
The GIDC is incorrect by quoting that the lease is less than 10 years because you have not leased out the property to Religare Finvest, instead you obtained mortgage loan and the same has been fully discharged, the original documents in your possession will establish the facts pleaded.
Now you are actually transferring the leasehold rights to the new buyer for equal number of years if not more, therefore the rule of charging 5% towards the transfer fee is the only law applicable hence the arbitral rule now made by the GIDC can be challenged in the high court by filing a writ petition. First you issue a legal notice denying the payment demanded by them after which you can approach high court with the suggested writ.
Dear Client,
Your dispute with GIDC over the lease transfer fee is based on the interpretation of the lease transfer policy. You argue that the fee should be calculated from the original 2004 lease date, qualifying for a 5% transfer fee, as the internal financial transactions with Religare Finvest Ltd. and India Resurgent Fund ARC do not constitute a change in ownership. These transactions were for mortgage management and should not affect the lease's tenure.
To challenge GIDC's decision, gather all relevant documents, including the original lease agreement and mortgage documents. Highlight that the leaseholder has remained the same since 2004 and submit a formal request to GIDC for a recalculation based on the original lease date. Engage a property lawyer to draft a legal notice if GIDC does not respond favourably. You may also consider filing a complaint with the Consumer Disputes Redressal Commission or the relevant regulatory authority. Research previous similar cases to strengthen your position.
Your argument for the 5% fee based on the 2004 lease date is valid.
You can file a civil suit and seek relief
- Since, the lease agreement/transfer policy states a 5% transfer fee for properties under lease for over 10 years, then GIDC cannot 25% charge on any ground.
- You can issue a legal notice against that demand , and if no positive response then file a Writ petition before the High Court.
