Categories
Navi Mumbai Real Estate

12.5% gaothan scheme of CIDCO – The basis of 99% of construction in Navi Mumbai

12.5% Gaothan Expansion Scheme of CIDCO

In 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 acquisition 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.

Lease Agreement (with builder)

Once again, CIDCO signs the Lease Agreement with CIDCO which bind the builder to the terms and conditions set by cidco for development of the plot and construction on it. It states all the details like the time for construction, penalties etc.

Final Order (Second)

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.

Lease Deed

This is the final document that is signed between builder and CIDCO which prove that the builder has followed everything stated in the Lease agreement and has completed and complied with all the conditions in that Lease Agreement.

This lease deed and final order are 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.

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 in Maharashtra 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.

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.


Mayur

Mayur is a real estate professional with more than 15 years of experience at all levels of the Real Estate trade in Navi Mumbai. When not involved in real estate, he is actively involved in social issues of the community where he lives. He can be reached on 9987452642

314 replies on “12.5% gaothan scheme of CIDCO – The basis of 99% of construction in Navi Mumbai”

Hi sir,

One builder approached me with their one plan, the land is 12.5% builder told me invest in land with group of 4 people and then he will construct building upon that land… which is G plus 4… means each investor should get their own flat… but he suggested us dont register land once building gets construct register the your own flat…because he mentioned you should register two times.. first when land purchase and second when flat.. and he only showed us award copy of that land… he told us for all documents please visit cidco office… can suggest this will going to work? And can we check other documents before invest?

Regards,
Dev

Award copy means nothing. Only an allotment letter along with tripartite agreement with CIDCO matters. Rest is all risky. The villager may never sell to the builder finally. He may want more money. Then you will be stuck.

Hi Mayur, I found one property in Navi-mumbai gaothan and builder has the rera no. and I checked on rera site that it is approved…so does rera no having is sufficient to go ahead to buy flat there or do i need to check other documents too?

You need to check all documents including Tripartite agreement, Lease agreement, CC, Sanctioned plans etc. You also need to check whether any court case has been lodged against the plot by the original plot allottees (gaon walas ) etc

HI Mayur panghaal ,

i stay in kharghar , one of our family friend who is a local villager has built a 2 floor building and as beeing a friend has requested us to take one of the floor.
if i purchase it will be my property or his. can i sell it later if wish to ?
what is the main cause people dont buy gaothan flats ?

Hi Mayur,

I have seen a 2 BHK gaothan property in Karawe Seawoods. The bldg is built on a villager’s land with proper agreement between him and builder. There are some registration fees, assessment tax have been paid of that land. Being a gaothan land there is no CC & OC.

Also, some finance house like Suvidha Finance is ready to provide Home Loan at 12% int p.a

Do you recommend to buy this property?

Hi Mayur,

Are all plots in Navi Mumbai-Ulwe are on leasehold? because whenever I check encumbrance cert. of builders I find that all plots are on leasehold but proper tripartite agreement done. What will be the procedure if lease is expired and whether govt. makes policy to own the plot after lease in Ulwe.

Hi Mayur,

I’m planning to purchase a resale flat in Kalamboli (gaontan) which is 5 years old. What all documents are required while purchasing.The builder is planning to pay some 55lac to CIDCO & get it CIDCO approved. Pls guide.

I am planning to purchase a 2bhk flat in Taloja having 925sqft built up area.Building has total 4 flats. Plot is under 12.5 scheme.papers seems to be ok. But builder is telling they will be giving conveyance deed(transfer of plot under name of 4 flat buyers) ,but society to be formed by 4 flat buyers. Can society be registered with just 4 members. Is it safe to invest without housing society be formed?

Yes,its possible to register society with just 4 members.The builder will have to give certificate from architect that there is no spare FSI left in the plot at the time of forming of society.

Hi Mayur, i wish to buy a 2 bhk flat. The land is under 12.5 scheme. Tripartite agreement is available. Oc is received. Society is yet to be formed.
The flat which i am being dealt with belongs to Gaonwala. However it has not been registered in Gaonwalas name.
Now who can sell this gaowalas flat? Only Builder or only gaowala or both.

Also CIDCO provides lease agreement for 60 years. What happens after 60 years.?

will cidco demolish building which have cc and oc ??..because of tripartite agreement is fraud.Plot is under 12.5% .as per cidco plot is shill not alloted its a vacant .

Dear Sir,

If society charging Rs.25,600/- from new entering member as share transfer fees then what are the responsibilities of society.

25000 – transfer premium
100 – Entrance fees
500 – Share certificate transfer charges

Who is responsible to transfer in cidco records? society or member.

Dear Mayur Sir,

Builder formed society and handover only Bylaws & Registration certificate (originally). but till date society has not received any documents from the builder. Which documents to be asked to builder if society is located in CIDCO area Kharghar.

Regards,

Sameer Sayyad

Hi,

I am planning to buy 40meters cidco tripatee plot in navi mumbai and building a 4 floor building. Please let me know if it is legal and what is the procedure and cost involved. Also what facility i have to give to tenant who will buy.

Regards,
Sumit Ujjain

Hi Mayur,

I am planning to buy 12.5% property in juinagar. Owner have cc oc of the property but does not have noc from the Cidco. Do still this property is legal?

Can I buy this property or do I need to verify more document from him?

Sushant

If he is first buyer from builder,CIDCO NOC is not necessary.If he is second buyer from someone else, he needs to have a CIDCO NOC (CIDCO Transfer) in his name.If he doesnt have it,you will have to pay for him also at the time of your transfer application to CIDCO.

Thank you Mayur for your reply.

I would like to verify this document from you. may I know your phone number please so that I can take your appointment.

Sushant..

HI MR MAYUR
I BOUGHT FLAT IN KAMOTHE IN SECTOR 36 JUNE YEAR 2011 .THE SOCITEY IS REGISTERED , ALSO HAVE OC ,NOC , CONVEYANCE DEED EVERY THINGS ARE DONE . I HAVE NOT DONE CIDCO TRANFER IN MY NAME ITS STIIL UNDER BUILDER NAME AND NOW I GAVE THE DOCUMENTS TO THE AGENT AND HE IS ASKING FOR SIGNATURE OF BUILDERS PARTNER OR POWER OF ATTORNEY
KINDLY TELL ME FOR CIDCO TRANSFER IS IT COMPULSORY SIGNATURE OF BUILDERS PARTNER ON THE DOCUMENTS .
OR THE POWER OF ATTORNEY . I BOUGHT THE FLAT DIRECTLY FROM BUILDER .IF YES THEN WHY BUILDER IS NOT WILLING TO GIVE NEITHER SIGNATURE FOR PARTNERS NOR POWER OF ATTORNEY TO TRANSFER THE FLAT IN MY NAME .
KINDLY SUGGEST ME WHAT STEPS I SHOULD TAKE TO DO SO .

REGARDS
ANIT

If you had purchased flat before society was formed and conveyance was done,then you dont have to get CIDCO transfer done.
After society is formed and conveyance is done,builder has no role to play.

Hello Mayur Sir,

when we get the OC and CC certificates…?
after completion of building construction and flat registration or when….?
also guide me about it.

Thank you..
Anurag.

If CC and OC are there,then its mostly legal.However the current and latest status can only be verified by a Title clearance certificate issued recently.

Hi Sir,

I am planning to buy a flat in under construction building in Ghansoli Sector 23.. and what documents needs to be seen before booking a flat.

Regards,
Rajat
9769661666

SIR,

I WANT TO ASK YOU THAT,I WAS PURCHACED PLOT OF 1100 MITER FROM VILLAGERS.WICH VILLAGERS GOT FROM CIDCO IN 12.5%.SO HOW MUCH TIME CONSUMING FOR CIDCO PROCIDURE….AGREEMENT DATE-28-03-2012
PANVEL VADGHAR U CASE NO-132 SURVAY NO-33

You cannot buy any property of 12.5% without NOC from CIDCO.You will only get it if you pay the lease premium to cidco and sign a tripartite agreement with CIDCO and gaonwala.

Sir, i am finalise property in rabale.it is underconstruction gaothan sanad property.so pls give me advise it is safe for me to buy?

Hi Mayur,
Thanks for this wonderful site. I was visiting Kalher-Kasheli and there are multiple under-construction projects on gaothan land which are financed by HDFC GRUH Finance, TATA Finance. The builder showed me that he has documents and is ready to get the finance done for me. He claimed that the documents will be registered in my name and the title is clear. Price looks attractive but was looking to know the risk I am facing.

Regards,

Mr Fernandes

I am intending to buy a 1 BHK flat in Vichumbe New Panvel. The Project has been approved and funded by LIC Housing Finance Ltd. & ICICI Bank Ltd. The Builder promised to show all the documents but after the Booking. They have not shared the APF No. on my request and instead asked to Book the flat first. They showed me a Plan of the Project which shows the the N.A details of the Project and also they claim that they have a NOC from NAINA and the Airport NOC as well. I am too much concerned about the Legality of the Construction Project. Could you please help with your comments on this?

Hello Mayur Sir,

Wish you very Happy New Year 2015 !!!

I want to ask you that, i was purchased a flat in CIDCO area last year with bank loan. That time for disburse loan from bank, they asked to get NOC from CIDCO for mortgage and permission from CIDCO for resale of flat. Now dont have these NOC, but last week bank call for submit the same. Please inform me in this case how can i need to deal. Can you help me in it.

Please reply soon on my email sayyadsameer@gmail.com

Regards,

Sameer Sayyad

Hello sir,
i have selected 1 property in nerul. which is 90% completed, just just 5 min walking from station, i like it very much. But the worry is that, building is come under gaothan. now the thing is more than 50% building in navi mumbai are come under gaothan which is positive , but if tomorrow something is happened i will be in big loss. so i am worried should i go for that propert or not. It means is there any chances of issues or problem will rise in future?

I have bought a gaothan flat (with a valid tripartite agreement) by taking loan from SBI. However, the builder has not yet given me the OC. What can we do??

hello sir please tell me the legal properties in navi mumbai (i.e. name of the builders or developers)

Its impossible to list all the illegal properties as there are thousands of them.Shortlist 4 properties and examine the documents of all of them before making any payment.

If conveyance in favour of society is not done then will cidco give noc.Then all nationalised bank will only finance flats will conveyance complete.There will be very few societies with conveyance complete in navimumbai.

Thanks a lot for the answer ….As they have applied for society formation , owner has paid necessary charges to builder..how and where to check the status of society formation ….

If they have applied for society formation ask them for letter received from the registrar acknowledging the same and approving the opening of the bank account in a co operative bank.Ask them for a statement of account from the co operative bank stating the same.

Hello!
I am planing to make a deal with gaowala who has award copy of 12.5% plot and want to sale his belonging plot. What would be the procedure? And also if you can advice more about the procedure. Thanks!

Proceed with caution.There have been numerous cases wherein the same plot has been sold to various builders/investors by the gaonwala…which will lead to court cases and bitter experience.Signing MOU’s with Gaonwala is useless as MOU has no legal standing in the court of law.Its extremely risky unless you know the gaonwala personally or he pledges some asset to you in case of default by him.
Please visit our newly set up Navi Mumbai Real estate forums here and post all your queries/documents/photos and videos for expert analysis by me.

Hi sir,
I am willing to purchase flat in kopar khairane in 12.5 ges ,society is not formed however they have applied for its formation .My question is will sbi give loan for such propety..also are rates low in 12.5 scheme …Dear sir please reply

Hello Sir
I’m planning to buy 1 bhk flat in resale in kamothe. I have met 3 brokers and have seen 8-10 properties. These are 1 yr to 4 yrs old properties. Every broker I met, said the same thing i.e. oc is clear, this is tripartite priory, society is formed but conveyance is in progress. I’m trying to get loan. Generally how much time does it take to get conveyance once society is formed? Will banks give me loan without conveyance? Is it OK to bye flat in building without conveyance?

Hello Sir,
I have checked a property in Navi Mumbai – Koparkhirane sec 19.
I am purchasing the flat directly from the owner & the building belongs to theowner & his brothers.
He said that he has the OC, CC but the society is not formed.
Is it ok to purchase such flat.Any nationalized bank doesn’t give loan on sec19 properties.

You will have to check the entire chain of documents.OC is important.Society formation is also important if you want a loan.Non formation of society is not a problem now,but can be in the future if you want to manage your society well.Ask him whether he has a copy of the lease deed which comes after OC.Society can be formed later by members also if builder is not making it.Conveyance comes after society formation and costs a few lakhs.That is the reason why builders usually run away from forming a society and giving conveyance.

Hii
Mayur
Myself pravin and I am going to buy a 1 BHK flat in balaji arcade phase 1 extension proposed by tirupati balaji builders and developers pvt ltd they given a plan that 20 percent booking amount and rest by the loan. My question is that the construction going on in a vichumbe villege panvel is the land in the cidco approved area they told me registration will be done after 10 months. Should I go to buy the property. Please suggest as early as possible because I am too much confused
Thanks
Pravin thorat
8108872008