• Land dispute and asking for amends if land does not have layout

Dear Lawyers of India,

My dad passed away after a heart attack recently in USA.  He was under a lot of pressure due to a large money given to a real estate person towards buying a plot in Hyderabad.  (shaikpet).  The GHMC layout is not yet approved by the government, and the owner claims to apply for LRS for layout (5 acres or so).

He  had given his money in 201. I(his daughter) am getting the site registered by paying the registration fee to him in 2016.  However, I need to consult the lawyers to check if there is any law in India that if the layout is not approved and LRS is not approved- we can be mitigated for the losses after the real estate person registers the land to us.

Madhu G
Asked 10 months ago in Property Law from United States
Religion: Hindu
If the layout is not approved the govt the title to be passed to you may be defective. It is not advisable to purchase the land unless the layout is govt approved. There may be a clause added in the sale agreement to indemnify you for the losses which are to accrue if the layout is not approved, but if the seller refuses to honour those clauses post registration of sale deed then you will have to inevitably file a lawsuit for breach of contract against him. 
Ashish Davessar
Advocate, Jaipur
18058 Answers
445 Consultations
5.0 on 5.0
1) first register the land in your name 

2) file RTi with municipal corporation as to whether any application made for approval of layout 

3) whether layout plan has been approved or not 

4) then move consumer forum against the developer for deficiency in service and seek court orders to direct developer to obtain these approvals within stipulated time or refund money with interest 
Ajay Sethi
Advocate, Mumbai
23120 Answers
1214 Consultations
5.0 on 5.0
Hi, LRS applications need to be submitted before 01 march 2016(probably this will be the final date). Thereafter we need to pay penalties (upto 80% of land value) and then get it regularised. The chance of not getting regularised in LRS is nil as penalties are close to current market value. Assuming if the land is in prohibited register and that is the actual reason why the builder has delayed registration, LRS is the best option for the builder to regularise.  For safety reasons suggest push the builder to get the registration and LRS application done NOW. If he refuses, then you need to look to file criminal action on him.   
Rajgopalan Sripathi
Advocate, Hyderabad
869 Answers
43 Consultations
5.0 on 5.0
1. Your query is answered considering that you or your father has taken adequate care in conducting the title search for the said property and the property is O.K.,

2. However, if it is found later on that the sale of the land has been conducted without being approved by the appropriate authorities, you can file a recovery suit claiming back the money you have paid with interest, damage caused to you and also cost for filing and persuing  the suit,

3. If there is any construction on the plot, then you can file a complaint case before your local district consumer dispute redressal forum.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
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A. As you aware, fundamental principles of law is any agricultural land must be converted for non agricultural purpose for residential layout and it must be approved from the local prescribed authority as per the Municipal law of the area.

B. The developer/builder has no right to sell the site or villa to anybody unless approved the layout. Therefore, you never get marketable title over the property unless plan sanctioned from the local authority. You better contact local advocate by showing all the documents in connection with the layout.
B.T. Ravi
Advocate, Bangalore
733 Answers
29 Consultations
5.0 on 5.0
He  had given his money in 201. I(his daughter) am getting the site registered by paying the registration fee to him in 2016.  However, I need to consult the lawyers to check if there is any law in India that if the layout is not approved and LRS is not approved- we can be mitigated for the losses after the real estate person registers the land to us.
The flats constructed without approval or even layout, it will be a risky issue. If you are not very confident about the real estate person, you may cancel the booking and ask for refund of entire advance amount quoting that inordinate delay to get the approval as well as formation of layout. 
T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
5.0 on 5.0

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