shehzad shroff (service) 02 July 2009

lease of land

Dear Sir,
Mr. A is a registered owner of land. Company B. wants to build mall on that land. Mr. A dont want to give ownership of land to company.
Can Mr. A give on lease of 50 years that land to company. Suppose Mr. A takes by way of premium Rs. ---- Lacs.
My queries are:
1) Is it possible to do as above.
2) Is it necessary to register a document with the government authorities or it will do if they execute a lease deed on stamp paper of Rs. 100
3) Company is telling that it will pay premium by way of installments every year.
4) Is it possible that Mr. A takes premium & also rent for every year.
5) Is it possible that Mr. A takes consideration by way of share in profits of that company.

Also please suggest other ways available, if any.
Please reply ASAP
Thanks

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2 Replies

sunaina (Lawyer) 02 July 2009

Hi,

Please clarify the nature of the land. If the land owned by A is agricultural land then it cannot be sold to company. First the use of agricultural land has to be converted into non-agricultural use, by paying prescribed fee to the concerned authority.

shehzad shroff (service) 02 July 2009

Dear Sunaina,

Thanks for ur reply. I would like to clarify that the land is not agricultural. So plz give ur opinion.

Also plz clarify after how many years of lease the ownership of land passes to lessee. Eg. if i give on lease land for 30 years, than in some states it is there that if lease is for 30 years or more than ownership of land passes to lessee. my land is in gujarat.

If u can please tell me what about the attraction of income tax (capital gain)

thanks