Mother in law should not execute any gift deed as 10 years have not passed since date of allotment 

no third party rights can be created within period of 10 years of allotment 

3) Rule 18 of allotment rules 1972 provide 

The purchaser, who is the beneficiary of deed of conveyance in his favour under Rule 18(1), is bound by the further limitation or condition that the purchaser shall not alienate the site within a period of 10 years from the date of allotment. The restriction against alienation, however, could not operate against a mortgage, as provided in Rule 18(2)(iii). The 37 mortgage is, however, to be one effected for the purpose of construction of the building on the site. Rule 18(2)(c) visits the purchaser, committing breach of any of the conditions in clause (a), inter alia, with the resumption of the site, no doubt, after a reasonable notice. Rule 18(2)(c) further declares that all transactions entered into in contravention of the conditions in Clause (a) and (b) are to be null and void ab initio. The transactions, which are referred to in Rule 18(2)(c), are the transactions which are referred to in Rule 18(2)(a)(iii) or Rule 18(2)(b).

If the law says that she cannot sell or alienate the property within ten years fro the date of purchase other than by inheritance due to the death of the allottee, then your mother in law is not an exception to the law of the land, she has to abide by the rules which is common for all.

The registrar may not entertain the registration of transfer of property citing this law as an legal impediment.

However she can transfer the same by a conditional settlement deed by retaining the life interest  in the property, by which there is no immediate transfer of property in favor of the beneficiary, provided the registrar accepts it.

Dear Client,

Regarding the issue of your mother-in-law wishing to execute a gift deed for the BDA-allotted site, it is important to consider the specific legal constraints associated with the property. As per BDA allotment rules, the sale or transfer of the allotted property is restricted based on a regulation that does not allow the separation of the property for 10 years from the date of allotment. As the allotment only occurred seven years ago then any dealing regarding the site, through sale or through gift deeds will definitely be considered against these regulations. While a gift deed is not a sale, it is a conveyance of property and as such BDA considers all such conveyances to be restricted until the end of the 10 year term.

In case your mother-in-law goes on to execute the gift deed before this period is over then the BDA has the potential client’s right to sue and this can be in a bid to counter the allotment. It would of course be safer from a legal perspective to simply wait ten years, or alternatively apply to the BDA to find out whether an such a transfer, under any circumstances, is possible at all. It is for this reason I advised to conform to these regulations and seek legal advice from a specialized lawyer in order to ensure that your mother-in-law is fully compliant with the regulations outlined by BDA.

I hope this insight provides the direction you need. If you have any further queries regarding the matter, do not hesitate to reach us again.

- The properties allotted by the Bangalore Development Authority come with specific restrictions like  , you cannot transfer transfer, sell, or gift for a certain period, usually 10 years from the date of allotment. 

- Further, the BDA does not allow gifting of the property to relatives during the 10-year lock-in period.

- Since, your mother-in-law wanted to gift the said property to her daughter , then she can move an application before the BDA for permission. 

Since the lock-in period of ten years has been specified by the BDA and only seven years has been completed post allotment, the execution of Gift Deed by your mother-in-law to her daughter at this stage does not confer legal ownership to the daughter.

Instead of opting for Gift Deed now, let your mother-in-law execute a WILL in favour of her daughter and after the ten year lock-in period is over, your mother-in-law can execute a registered Gift Deed in favour of her daughter.

Dear sir 

Since there is a clause of non alienation as such your mother in law cannot execute any gift deed in favor of her daughter during such clog period. anyway please take the opinion in respect of clauses as to whether only sale was barred or other alienations were also bared.