• NPNL plot

Dear sir, i am in the process of buying a NPNL (no profit no loss ) plot. The plot was initially sold for only 2 lakh rupees in 2007 and then the second buyer bought it in 2009 for 40 lakhs . Now, i am thinking of buying it. however, i am a little unsure of this plot category. As in, i was reading the latest NPNL guidelines which says that a NPNL plot cannot be transferred and it must be held for at least one year after possession --quoting -"  Once a Plot/ Independent Floor is allotted through the procedure as specified above, the same cannot be transferred by the coloniser to any other person by documentation in its records. Such Plots/ Independent Floors shall also be prohibited for transfer/sale up to one year after getting the possession of the Plots/ Independent Floors to avoid speculation and to provide housing to the genuine persons. Breach of this condition will attract penalty equivalent to 200% of the selling price of the Plot/ Independent floor. The Penalty will be deposited in the ‘Fund’ administered by the Town and Country Planning Department so
that the infrastructure of the State can be improved. Failure to deposit such penalty shall
result in resumption of the Plots/ Independent Floors and its re-allotment in consultation
with the Department."
So, firstly i am not sure if i will be penalised of the above rules were not followed back then.
secondly, what was the lock in period earlier? it is 1 year at present.
thirdly, if the plot was transfered before possession , will i be penalised at present? how safe is it to buy this kind of a category? what all should be checked? thank u
Asked in Property Law from Gurgaon, Haryana
Religion: Hindu
1) take 30 years search in sub registrar office 

2) contact a local lawyer and obtain his certificate that title is clear and marketable 

3)check whether seller has all original documents of property 

4) check whether property taxes have been paid till date 

5) if plot has been transferred before possession penalty would be levied upon the seller 
Ajay Sethi
Advocate, Mumbai
28387 Answers
1541 Consultations

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Registered sale deed and prior deeds should be checked before buying the same. Here some speculative conditions are imposed in the sale deed, so it should be a mandate for sale .So any person who intend to purchase the same ,he should follow the condition otherwise he would have to remit the liability . Check the Seller has absolute ownership in the property.Meet a local lawyer 
Ajay N S
Advocate, Ernakulam
2068 Answers
24 Consultations

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Property search or tracing of title for the past 30 years to be undertaken.

The original title documents to be scrutinised.

The title to the seller to be ascertained by verifying all related documents.

The penalty if any should have been paid by the seller.

Consult a local lawyer and obtain a proper legal opinion on the property before buying.


T Kalaiselvan
Advocate, Vellore
18585 Answers
175 Consultations

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