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SATYA PAL SINGH (Jt Secretary)     13 August 2014

Registration

My Seniors,

The case pertains to a govt agency ( CGEWHO)building houses for the govt employees on no profit no loss basis. It initiated a project  on TURNKEY basis, by giving the contract to a successful bidder to buy land, construct flats and give to CGEWHO, by signing an MOU. The contractor acquired land, got registered in its name, constructed the flats and handed over to the agency, who in turn handed over the flats to the beneficiaries. Now the agency(CGEWHO) wants to complete registration process, one party being himself and other the beneficiary. There is no registration transfer between the contractor and the agency.

Whether the process of registration and transfer is legally valid?

Your valuable guidance may avoid any future hardship to > 500 beneficiaries.

Thanks!



Learning

 3 Replies

Rangee (Lawyer)     15 August 2014

Since the contractor has purchased the land in his own name and build houses, it is necessary that the houses along with should be transferred to Non profit society and later on the society gets the title to transfer the houses to government servants.

R.S.K.Singh

SATYA PAL SINGH (Jt Secretary)     17 August 2014

Thanks Mr Singh for your valuable advice, giving us a direction. 

Satya Pal Singh

Rangee (Lawyer)     17 August 2014

The contractor has purchased the land in his own name may be to avoid service tax. It would have been better if he had purchased the land in the name of society and then executed the work, since any work executed with non profit organization is exempted from service tax.

Transfer of build houses in the name of  society will be costly since you have to bear cost of stamp duty and Registration charges. You may obtain irrevocable power of attorney from the Contracted executed in favour of society and directly transfer the houses in your name. Hope I have answered your query,still if you have doubt please consult  good lawyer in this matter. 

R.S.K.Singh


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