Real Estate Agency

12.5% gaothan scheme of CIDCO

Almost 99% of Constructions in Navi Mumbai are on what is called Sade Barah Takka Land.

CIDCO office at BelapurIn most cases,the flats purchased in Navi Mumbai, are built by builders on something called 12.5% Gaothan expansion scheme and (also called ‘ साडे बारह टक्का ‘ plot).In this case the land was initially allotted by CIDCO to a local villager (gaonwalla),in exchange for his farmland,which CIDCO took over.
The exact beneficiary of this scheme is decided by land revenue documents and a document called 7/12 (saat baaraah).These are available with the village Talati,Tehsildar,Patwari,Collector etc.

Basically the ratio of this acqusition was 12.5%,which means that if the villager owned 100 sq meters of farmland,he was allotted 12 meters of land,on which he was free to do construction activity or sell it for a profit.

In such cases,the documents required are…..

Award Copy
A type of letter issued by CIDCO,specifying the Name of the villager to whom CIDCO has decided to give 12.5% of the land acquired by it.It is proof that the villager is entitled to a parcel of land from CIDCO.Till this stage,the place and exact spot of allotment is not known to the villager.The only thing he knows is that he will be allotted a specified area of land.

Letter of Intent
Once CIDCO is ready to allot the piece of land to the villager holding the award copy,it issues a letter of Intent to the villager telling him the same.He is then shown the exact plot that he will be allotted and his approval obtained via a signature.

Letter of Allotment
Once all the approvals of the villager are obtained,a letter of allotment is issued which specifies the villager’s name and exact demarcation of his plot.

Lease Agreement
Since CIDCO does not sell any plots (it only gives plots on long term 60 yr lease),it signs a Lease agreement with the villager which specifies the exact terms of the lease.It includes the time limit for constructing the structure,the fines and penalties imposed in case of any violations of the time schedule,transfer charges to be paid to CIDCO and approval of CIDCO incase any new title or interest is created in the property.etc.

Transfer charges
After the lease agreement is signed by the villager,he pays the CIDCO transfer charges and other CIDCO charges.

Final Order
Once all the stipulations of the Lease agreement are complied with a Final Order (a type of a letter on CIDCO letterhead) is issued to the Villager which clearly and conclusively gives the rights,title and interest to him.

Tripartite Agreement
This is a type of agreement by which the villager transfers his rights,title and interest on the land to a third party,namely,the builder/developer/construction company.This could be done for various reasons including lack of funds,expertise etc.Transfer charges are paid to CIDCO and CIDCO now admits the builder/developer/construction company in its records as the owner of the land.

Final Order
Its a letter issued by CIDCO stating conclusively that the rights title and interest of the said plot now belong to the builder and not the villager.

Once these documents are in place,the builder takes over and starts the procedures to construct the building.This involves getting permissions from various agencies like CIDCO and NMMC,Fire dept etc.

After completion,the builder/developer obtains the Occupancy Certificate.
Only after obtaining the Occupancy Certificate only can the builder sign the lease deed with CIDCO.

This lease deed is the most important document that a flat buyer should insist on,once the Occupancy certificate is issued to the building.Society formation,Conveyence of land in favour of the society etc will become all the more difficult if this document is not available.

Imp: Occupancy certificate is issued by NMMC and proves that the building is legal and adheres to the sanctioned plans.Drainage and other water connections are given only after this final certificate.Please be aware that after the recent scams in land dealings inMaharashtra and Mumbai,the municipal authorities have become very strict and do not issue Occupancy certificates like they used to. Earlier the builder could pay a fine and regularize the illegal work but now its not uncommon to find buildings even on the high profile Palm beach road lying vacant for 8 months or more due to this factor. One such building is Rattan Icon located in sector 50, Seawoods (you can see it from Palm beach road).
If you have any other queries,please call us on 9987452642 for an appointment at our office.(Navi Mumbai).We cannot answer your queries on the phone as this subject is too vast and takes up too much time.We do not want to give you wrong advice and hence would request you to fix an appointment.A visit to our office will cost you money and will be made known to you at the time of appointment.We are a real estate consultancy based in Nerul,Navi Mumbai.
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