Most of the leased
premises administered by the Land and Development Office are restricted i.e. permission of
the lessor (the Land & Development Office) is a precondition for assignment or
transfer of lease hold rights by the lessee. Hence
in restricted leases it shall be obligatory for the lessee to obtain prior permission of
the lessor where required, can be granted to the lessee or his duly authorised attorney.
PERSONS WHO CAN APPLY FOR SALE PERMISSION:
person or persons whose names appear on the records of the Land & Development Office
as lessee(s); and
Duly authorised attorney(s) of the lessee(s).
PROCEDURE FOR MAKING AN APPLICATION FOR SALE PERMISSION:
A lessee or
his duly authorised attorney can make an application for sale permission of the leased
premises administered by the Land & Development Office in the prescribed format. The application complete in all respect and signed
by the lessee(s) or duly authorised attorney(s) of the lessee(s) as the case may be can be
sent by Registered post or delivered at the Central Receipt Counter of the Land &
If the application is made by attorney(s) of the lessee(s), it shall
attested copy of the Power of Attorney duly executed under the Indian Registration
affidavit in the prescribed format of the lessee to the effect that the General Power of
Attorney has not been revoked and he/she has no objection to the sale permission being
given to the attorney; and
Nominees Affidavit in the prescribed format, where sale permission is to be
in favour of the Attorneys/Intending Purchasers nominee.
DOCUMENTS TO BE ENCLOSED TO THE APPLICATION:
Apart from the
documents listed above in cases where the Attorney of the lessee(s) applies for sale
permission, the following documents shall accompany the application:-
Certified copy of the Agreement to sell, duly registered under the Indian
case of residential Properties where the intending purchaser is an individual or a HUF, an
affidavit in the prescribed form of the intending purchaser/transferee duly sworn before a
Magistrate/Sub-Judge with verification clause duly completed to the effect that he or any
member of his family do not own any residential plot or house in Delhi. A photograph of the deponent or intending
purchaser shall be affixed on this affidavit;
(iii) Where the intending purchaser is a company, a copy each of :-
(a) Memorandum of Association;
(b) Articles of Association;
(c) Certificate of incorporation;
Resolution empowering one or more of the Directors to purchase the property for the
(e) List of the present Directors;
duly attested by the Company Secretary, Director, a Gazetted Officer or a Notary
affidavit (in the prescribed form) to the effect that the property shall be used for
residential purposes (applicable in respect of residential leases), duly attested by
Magistrate Ist Class.
Where the intending purchaser is a Firm, a copy each of:-
Deed of Partnership duly registered with the Registrar of Firms;
Resolution empowering one or more of the partners to purchase the property for the
(c) List of present partner;
duly attested by a Gazetted Officer or a Notary Public), and
(d) An affidavit (in the prescribed by the requisite documents, the same shall be returned at the receipt stage. An acknowledgement slip as shall be given to the applicant or his messenger by the Receipt Clerk in case of complete application as a token of its receipt by the Land & Development Office.
PROCEDURE FOR GRANT OF SALE PERMISSION:
for grant of sale permission receive in the Land and Development Office shall on the date
of its receipt, be date-stamped and diarised by the Central Receipt Cell to indicate the
date of its receipt. The same shall,
therefore, be passed on to the section concerned which shall in the first instance
scrutinise the same in order to ascertain whether it is complete in all respects or not. Incomplete application shall be returned to the
applicant within seven days of its receipt.
If the application is complete in all respects, the necessary calculations shall be
completed and the terms for sale permission shall be offered on the basis of the available
information on record, within one month of the date of receipt of complete application. The applicant or lessee(s) shall be given 30 days
time from the date of the letter to comply with the terms officered for grant of sale
permission. It shall also be made clear in
the terms letter that without compliance of the terms, no correspondence shall be
entertained and if the representation is made against the terms, and on consideration of
the representation, if there is no change in the original terms, the original application
for sale permission shall be treated as disposed of and the crucial date will be shifted
to the date of such representation. Such
representation shall be disposed of in 30 days, by offering the fresh terms.
If the applicant or lessee does not make the payment within the stipulated 30 days
period form the date of offering the terms, the terms, the application for sale permission
shall be treated as closed.
If the applicant or lessee makes the payment after the expiry of the stipulated
period, the crucial date shall be shifted to the date of such payment and if there is
change in the land rates during intervening period, the applicant or lessee(s) shall be
liable to pay the difference in the unearned increase etc. before granting of the sale
If the payment is made by the
applicant or lessee(s) through a Bank Draft or a Bankers Cheque, the sale permission
shall be issued by the Land & Development Office within a week of receipt of the Bank
Draft/Bankers Cheque. In case where the
payment is received through a personal cheque, the sale permission be issued within a week
of realising the amount through the Bank.
The date of
receipt of complete application in the Land & Development Office shall be the crucial
date for calculation of unearned increase. The
unearned increase shall be calculated by taking the date of receipt of complete
application as the crucial date and the original premium/last transaction value as the
case may be and the notified land rates applicable for the crucial date as the relevant
In the case of first sale of rehabilitation properties, neither any unearned
increase is payable nor is the ground rent to be revised.
In such a case the formal letter of grant of sale permission shall be issued
immediately after the documents are received and found in order. Such files shall not be referred to Internal Audit
FORMULA FOR WORKING OUT UNEARNED
The amount of
unearned increase with reference to the crucial date shall be arrived at as under:-
area X (Present day value of the land minus last transaction value) X ½
N.B.: The terms Last Transaction Value means the original premium where the lease premises or any part thereof has not been sold/assigned or the value on the date of last sale/assignment where the leased premises was sold/assigned in full or part.
[M/o UD letter No. 13019/1/93-LD dated 11.03.1994]
TERMS FOR GRANT OF SALE PERMISSION
calculation unearned increase, terms for grant of permission for sale shall be drawn and
referred to the Internal Audit Cell for concurrence.
The terms shall comprise of the following:-
amount of unearned increase payable by the lessee;
amount of enhanced ground rent payable by the intending purchaser from the date of
execution of sale deed;
amount of ground rent upto the ensuing 14th January or 14th
July, whichever is earlier, if not already paid;
amount of damages for breaches upto ensuing 14th January or 14th
July whichever is earlier, if the breaches are not removed and the intending purchaser
furnishes the requisite undertaking;
amount of penalty recoverable, if any; and
amount of interest recoverable, if any,
The rights and
responsibilities accruing from sale permission accorded to a lessee on certain terms and
conditions which were to be fulfilled by him before his death, are inherited by the heirs
of the deceased lessee. It shall not,
therefore, be necessary to work out any fresh terms and conditions in such a case. The case shall be processed further on the basis
of old terms after carrying out mutation in the name of the heirs.
INSPECTION OF THE PREMISES:
There shall be no need to conduct fresh
inspection of the permission for considering sale permission application. Terms shall be finalised only on the basis of the
available information to ensure that there is no undue delay.
GRANT OF SALE PERMISSION:
On the terms
being complied with in full, sale permission to the lessee or attorney, as the case may
be, shall be granted by the Land & Development Office through a letter in the
prescribed format. The lessee or attorney
shall execute the sale deed within the valid period of sale permission and shall get it
registered with the Sub-Registrar having jurisdiction over the area in which the property
is situated. One copy of the registered sale
deed duly attested by the Sub-Registrar shall then be furnished to the Land &
Development Office. If the sale deed is found
to be in order, mutation letter in favour of the purchaser shall be issued. In case of delay in getting sale permission terms
or mutation letter, the lessee or attorney, as the case may be, may contact the Public
Relation Officer with prior appointment.
DURATION FOR WHICH SALE PERMISSION SHALL BE VALID:
If the land
rates valid as on the crucial date are not in force at the time of issue of the terms or
these rates are not likely to be in force for more than 6 months, the sale permission
shall be valid for a period of 6 months.
EXECUTION OF SALE DEED:
permission letter also contain that if the sale deed is executed after the expiry of the
time limit specified in the sale permission letter, the mutation will be carried out only
on payment of the difference in the unearned increase either by the lessee(s) or by the
purchaser. A copy of the sale permission
letter shall also be marked to the intending purchaser.
If the sale deed is executed within the valid period of the sale permission, the
mutation shall be carried out on the basis of certified copy of the sale deed.
If the sale deed is executed after the expiry of the time limit, the demand of the
difference in the unearned increase due to revision of land rates shall be raised and
realised before carrying out the mutation. However,
if the sale deed is executed after the expiry of the time limit and the revision of land
rates has become due but the revised land rates have not been notified when the purchaser
approaches for mutation, the mutation may be carried out after obtaining an undertaking
from the purchaser agreeing to pay the difference in unearned increase.
[M/o UD letter No. J-13019/1/93-LD dated 11.03.1994].
SALE WITHOUT PERMISSION:
A lessee shall
not sell lease-hold without permission of the lessor where such permission is required and
sale without the lessors permission shall be a breach of the terms of the lease for
which the lessor may re-enter the property and the lease-hold rights shall stand forfeited
to the state. Such breach may be regularised
on payment or penalty in addition to the payment of unearned increase, if
If the sale deed is executed without prior permission of the lessor and an
application is made for mutation of property, the date of intimation of transfer alongwith
certified copy of the sale deed shall be the crucial date for purposes of calculating
unearned increase. Though in the normal
course, the demand of unearned increase shall be on the lessee, in such cases where the
sale deed has already been executed and if the purchaser is willing to pay the amounts,
there shall be no objection in raising the demand on the purchaser before carrying out the
mutation. In all such cases a penalty of Rs.
3,000/- per annum shall be levied.
Transfer of his/her rights in the leased premises by one co-lessee to another
co-lessee through a sale/gift/release deed, does not require the permission of the lessor
even in restricted leases and therefore such a transfer shall not be treated as a breach
of the terms of the lease. No unearned
increase shall be recovered in such cases.
[M/o UD letter No. J-13019/1/93-LD dated 11.03.1994]