Housing project on midc land
Pravin_123
(Querist) 19 April 2012
This query is : Resolved
Hi,
I am planning to buy home in a Housing Project which is built on MIDC land. This land has been taken on lease of 95 years by builder.
I have following questions regarding this
1) Can MIDC terminate this lease earlier? If yes under what circumstances?
2) Can MIDC refuse to renew this lease once it expires?
3) As builder his self maintaining project can he decline to extend lease?
What are my legal options in above circumstances?
Which are common problems in such situation?
Thanks
Pravin.
ajay sethi
(Expert) 19 April 2012
please go trhough the lease deed entered into between builder and MIDC for aswer to your queries
Devajyoti Barman
(Expert) 19 April 2012
Without seeing the lease deed it is difficult to comment on its clauses including termination clause.
Raj Kumar Makkad
(Expert) 19 April 2012
1. As per terms of the Lease-Deed.
2. Yes.
3. Yes.
Generally lease is extended by owners subject to charging the prevailing market cost so you be prepared to bear cost once the lease period is expired. Once the possession with lease is handed over to association, the interfer3ence of the builder ends.
Shonee Kapoor
(Expert) 20 April 2012
Better study lease deed/
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Shashikant V. Patil
(Expert) 20 April 2012
There is no role of builder. The land is adminstered and looked after by MIDC only, and MIDC is a sole authority to take decision at its descretion.
Pravin_123
(Querist) 23 April 2012
Thanks all for expert comments.
Pravin_123
(Querist) 25 April 2012
When i asked for lease agreement between MIDC and builder i was given an order from MIDC (attached) and i was told that this is the lease agreement between MIDC and builder.
Question 1) Can this MIDC order considered as lease agreement?
Following are questions on clauses in MIDC Order
a) The allotee shall enter into an agreement to lease in the form prescribed by the corporation and on performance of the condition will be entitiled to a lease for the terms and ninety five (95) years to be compute from date from handing over of the possesion and renewable for one further term of 95 years on payment of premium and on such terms and conditions as may be determined by the corporation at the time of renewal.
Question 2) As per above clause in MIDC order lease can be further renewed for one term of 95 years without any objection from MIDC on payment of premium. Further renewal terms will be described at that time.
Is my understanding corrent?
n) Then corporation will grant the lease of the plot in favour of developer and the developer will sub-lease the premises to the occupant.
Question 3) I was told by the builder that land is leased to builder and he will sub lease same to occupants but development done on plot is owned by builder and he can sell same. Because of this even though builder has lease agreement with MIDC he will enter into Sales Agreement of flats with buyers.
Can development on leased land owned by builder?
Can builder enter into Sales Agreement with buyers?
Thanks in Advance,
Pravin
Shashikant V. Patil
(Expert) 30 April 2012
This is an order ,but not a lease agreement. But the period is for 95 yrs is considered for lease period. After completion of 95 yrs. there will be again renewal of lease. However, there is a condition in that order that, only who are employees of IT park , can avail this residential plots.
