In India, selling government allotted plots is often governed by specific terms and legal constraints tied to the initial allotment. So can I sell government allotted plots? Often these plots are given on a leasehold basis, not freehold, meaning the allottee cannot transfer, sub-lease, or sell the land without explicit permission from the government authority or collector.
Can I Sell Government Allotted Land?
Lease agreements typically detail the mandatory non-transfer period commonly 5 to 10 years from the date of allotment or construction completion.
For instance,
Rajasthan prohibits alienation of plots for 10 years post construction, with unauthorized transfer causing the land to revert to the government without compensation.
Similarly, Karnataka has laws protecting SC/ST assigned lands wherein transfers require special permissions and may be void if conducted improperly.
Permission for sale usually involves paying a transfer fee or a percentage of “unearned increment” (up to 50%) based on the land’s increased value since allotment. Failure to comply can lead to legal complications, such as demands for retrospective fees or even nullification of the sale deed as seen with high-profile cases in Maharashtra.
Additionally, special rules may apply to plots allocated to SC/ST individuals. Under relevant Acts, such plots are subject to transfer restrictions, and violations may lead to criminal prosecutions.
Before proceeding, it's crucial to review the allotment and lease deed, consult the relevant state rules, seek collector’s prior approval, and anticipate any transfer fee. Non-compliance can result in the sale being void, financial penalties, or legal action.
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Can I Sell Government Allotted Plots?
shivam
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4 months
2025-07-15T07:49:05+00:00 2025-07-15T07:49:07+00:00Comment
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