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Jaya Pathak (Paralegal)     30 July 2023

Query - supplemental agreement to lease to transfer midc plot to a new allottee???

In 1993 an individual person was allotted industrial plot under the Maharashtra Industrial Development Act 1961. He had entered into an Agreement to Lease with MIDC. Thereafter no Final Lease Deed was executed between them. Now in 2023, MIDC is asking him to enter into a Supplemental Agreement to Lease to transfer this plot to a new allottee.

I would like to know if Supplemental Agreement to Lease is the correct type of agreement to transfer the leasehold rights in this plot to the new allottee as per The Transfer of Property Act. 



Learning

 3 Replies

T. Kalaiselvan, Advocate (Advocate)     31 July 2023

There are various guidelines issued by MIDC  for the transfer of  leasehold rights of plots in MIDC area 

Over a period of time the MIDC has revised its transfer guidelines few times keeping in view the main objective of MIDC regarding utilisation of plots for the business activity which results in the economic growth of the country and also generates employment.

As per earlier guidelines, permission for transfer of open plot was not being granted if the plot holder did not obtain the BCC and  also not gone into the production. However, considering the financial recession and pressing requirements of industrial plots, the open plots were allowed to be transferred with condition that the permission will not be granted for five years from the date possession for following:-

  • Transfer, Sublet, Sub-Lease of open plot if plot holder has not obtained BCC and not gone into production.
  • Any partnership where holding of original promoter is going below 51%.

The requirement of supplementary agreement for transfer of the plot to the new allottee would be based on the latest circular, hence you may better clarify further details in person from the authorities cocnerned

Dr. J C Vashista (Advocate )     31 July 2023

The plot is stated to have been allotted on lease by MIDC. It is impossible (and unbelievable) that "no final lease deed was executed by MIDC" as stated by you, please recheck MIDC records.

Accordingly there is no need for any supplementary lease deed.

Jaya Pathak (Paralegal)     10 August 2023

Thank you Dr. J C Vashista for your response. They have checked the file completely and final lease deed was never executed. Even MIDC has confirmed it. And that is the reason why MIDC is asking for Supplementary lease deed to transfer plot to new allotee since there is no final lease deed with current allotee.

If a final lease deed is done, then MIDC asks to do a Assignment Deed to transfer to new allottee. 

 


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