CIDCO has been allotting plots to the individuals for the construction of independent Row houses for their residence at the rates decided from time to time. The allotment of such plots also carries restrictive condition against the transfer or assignment of the right, title and interest in such Properties. The relevant condition from the allotment letter of such plots is reproduced below:-
“ TRANSFER OR ASSIGNMENT OF RIGHTS :
You shall not transfer or assign your rights, interest in, or benefit under the agreement concluded between the Corporation and you in respect of the plot allotted to you as a result of the acceptance of your offer by our Corporation for allotment of plot save and except with prior written permission of the corporation and further on payment of transfer charges. Provided that no permit shall be granted until you shall have paid an agreed premium in full and any other amount required to be paid by you to our Corporation and abided by the terms and conditions herein stated”.
This condition runs as under in Clause (o) of the Lease Deed Not to sell, assign, mortgage, underlet or otherwise transfer wholly or partly the demised premises or his/their/ its interest therein or part wholly or partly with the possession of the demised premises or permit any person to use wholly or partly the demised premises PROVIDED THAT nothing contained herein shall apply if the Lessee shall perform to the satisfaction of the Lessee shall perform to the satisfaction of the Lessor the following conditions :
(i) BEFORE TRANSFERING THE DEMISED PREMISES, the Lessee shall pay to the Lessor one half of the difference between the declared premium (i.e. premium calculated at such rate or rates as may be determined by the Lessor from time to time) and the premium paid by the Lessee to the Lessor, for obtaining the lease of the demised land, subject to a minimum of Rs.1,000/-.
(ii) “For the purpose of this covenant, the term ‘ transfer of the demised premises’ shall mean and include the transfer of a share or shares by its shareholder or member or any Agreement or act or omission whatsoever of such shareholder or member which has the effect of transferring or enabling the enjoyment of such demised premises or a part thereof. In case of such transfer, the Lessee shall pay one half of the difference of the declared premium and the premium paid by the Lessee as is allocable to the land or building or part thereof so transferred or agreed to be transferred by its shareholder or its member and such allocation shall be with reference to the proportion which the floor space index (as defined in the General Development Control Regulations constituting the development plan for the New Bombay for the time being in force) of the land or building permitted by the Lessor shall bear to such floor space index of the land or building or part thereof so transferred or agreed to be transferred”.
(iii) In the instrument by which the Lessee shall transfer the demised premises, the Lessee shall impose upon the person to whom the demised premises are so transferred to perform and observe to the Lessor all the conditions and covenants of the lease granted to him including this covenant.
“ (c) The Deed of Assignment shall contain the following Covenant:- To read the full article click on the link given below.
Credits: Legal Aspects of Property Transactions in Maharashtra (Book)
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