Transfer of Property

Swapnil S.Sawant. (Querist) 04 August 2010 This query is : Resolved
Sir,
My client is a Pvt.Ltd.Company. It is going to acquire agricultural land for Bona-fide Industrial Use.
Now, as per Bombay Tenancy Act, for company ceiling limit is 10 Hectors. So, we have decided to execute registered Agreement to Sale with Possession being transfered through it.
But,Sub-Registrar refused to register that Agreement to Sale saying that,.....as we are taking possession thru Agreement to Sale,then it will be 'TRANSFER'. & as per Bombay Tenancy Act, Sec.63A(1), Transfer to Bona-fide Industrial Use is barred beyond 10 Hectors.
As I think, what is contemplated under that Act is bar to Transfer means Conveyance i.e. Complete Sale ..and not Agreement To Sale.
So, till company get permission from Director of Industries, Company can certainly execute ATS i.e. Agreement TO Sale as it does not creat any Interest in property in its favour nor it will be Transfer as is wrongfully said by the Sub-Registrar.
What is your guidance to me ?
Regards.

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s.subramanian (Expert) 04 August 2010
agreement of sale cannot convey title. if there is a specific provision in the stamp act of maharashtra you have to pay the stamp duty accordingly. but be sure that by paying such a stamp duty,you cannot claim title under agreement of sale.

Y V Vishweshwar Rao (Expert) 04 August 2010
I agree with Mr Subramanian and add that ;-

Sale agreement with delivery of possesion-undre sale agreement acquistion of right to enjoy the land - Though it is not absolute transfer - the purchaser will be acquiring Certian rights to enjoy the possesison- The Local Act prohibits any transfer of land more than Ten Hectors to Industrial Usage - The SRO will be guided by local Act/s and the Registration Office & Revenue Department Rules /Circulars / Registration & Transfer prohibtion List/s