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The Indian Easements Act, 1882 (“Easement Act”)
The law relating to easements and licenses in property is governed by the Easements Act. The right of easement
has been defined under the Easements Act to mean a right which the owner or occupier of land possesses over
the land of another for beneficial enjoyment of his land. Such right may allow the owner of the land to do and
continue to do something or to prevent and continue to prevent something being done, in or upon land which is
not his own. Easementary rights may be acquired or created in the manner specified under the Easements Act.
Registration Act, 1908
The Registration Act, 1908 (the Registration Act) was enacted with the object of providing public notice of the
execution of documents affecting transfer of interest in property. It details the formalities for registering an
instrument. Section 17 of the Registration Act identifies documents for which registration is compulsory and
includes, among other things, any non-testamentary instrument which purports or operates to create, declare,
assign, limit or extinguish, whether at present or in the future, any right, title or interest, whether vested or
contingent, in immovable property of the value of Rs.100 or more, and a lease of immovable property for any
term exceeding one year or reserving a yearly rent. A document will not affect the property comprised in it, nor
be treated as evidence of any transaction affecting such property (except as evidence of a contract in a suit for
specific performance or as evidence of part performance under the T.P. Act or as collateral), unless it has been
registered.
The Indian Stamp Act, 1899 (“Stamp Act”)
There is a direct link between the Registration Act and the Indian Stamp Act, 1899. Stamp duty is payable on all
instruments/ documents evidencing a transfer or creation or extinguishment of any right, title or interest in
immoveable property as specified in the schedules to the Stamp Act . The rate of stamp duty varies from State
to State. The applicable rates for stamp duty on these instruments, including those relating to conveyance, are
prescribed by State legislation. Instruments chargeable to duty under the Stamp Act which are not duly stamped
are incapable of being admitted in court as evidence of the transaction contained therein. The Stamp Act also
provides for impounding of instruments which are not sufficiently stamped or not stamped at all.
The Land Acquisition Act, 1894
The Land Acquisition Act, 1894 provides for the compulsory acquisition of land by the Central Government or
appropriate State Government for public purposes, including planned development and town and rural planning.
However, any person having an interest in such land has the right to object to such compulsory acquisition and
has the right to compensation. Some States have their own land acquisition statutes and the Company has to
abide by State legislations in those States in which it conducts its business.
Laws for Classification of Land User
Usually, land is broadly classified by the government authority under one or more categories, such as
agricultural or non – agricultural (residential, commercial and industrial). Land classified under a specified
category is permitted to be used only for such specified purpose. Where the land is originally classified as
agricultural land, in order to use the land for any other purpose, the classification of the land it is required to be
converted into residential, commercial or industrial purpose, by making an application to the relevant municipal
or land revenue authorities.
Development of Agricultural Land
The acquisition of land is regulated by State land reform laws which prescribe limits up to which an entity may
acquire agricultural land. Any transfer of land which results in the aggregate land holdings of the acquirer in the
State to exceed this ceiling is void, and the surplus land is deemed, from the date of the transfer, to have been
vested in the State Government free of all encumbrances.
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While granting licenses for development of townships, the authorities generally levy proportional development
charges for the provision of services such as laying down of main lines, drainage, sewerage, water supply and
electricity, where the authority is carrying out the same. Such licenses require approvals of layout plans for
development and building plans for construction activities.
Land Use Planning
Land use planning and its regulation, including the formulation of regulations for building construction, form a
vital part of the urban planning process. There are several authorities having jurisdiction to regulate land use
planning and real estate development activities in each Indian State.
Various enactments, rules and regulations have been made by the Government, concerned State governments
and other authorized agencies and bodies such as the Ministry of Urban Development, State Land Development
and/or Planning Boards, local municipal or village authorities, which deal with the acquisition, ownership,
possession, development, zoning, planning of land and real estate. All relevant applicable laws, rules and
regulations have to be taken into consideration by any person or entity proposing to enter into any real estate
development or construction activity in this sector in India.
Building Consents
Each State and city has its own set of laws which govern planned development and rules for construction (such
as floor area ratio "FAR" or floor space index "FSI" limits). The various authorities that govern building
activities in States are the Town and Country Planning Department ("TCPD"), municipal corporations and the
Urban Arts Commission. Any application for undertaking any construction or development activity has to be
made to the such authorities, which is a State level department engaged in the physical planning of urban
centres and rural areas in the State.
Authorities such as the ‘Town and Country Planning Department’ prepare the schemes and projects of various
different agencies so as to improve living and working environments and to provide planned and developed
sites for residential, commercial and industrial purposes. The municipal authorities regulate building
development and construction norms. For example, building plans are required to be approved by the relevant
municipal authority. The Urban Arts Commission advises the Government in the matter of preserving,
developing and maintaining the aesthetic quality of urban and environmental design in some States and also
provides advice and guidance to any local body with respect to building or engineering operations or any
development proposal which affects or is likely to affect the skyline or the aesthetic quality of the surroundings
or any public amenity provided therein. Under certain State laws, the local body, before it accords its approval
for building operations, engineering operations or development proposals, is obliged to refer all such operations
to the Urban Arts Commission and seek its approval for the project.
Besides the above, certain approvals and consents may also be required from various other departments, such as
the Fire Department, the Airport Authority of India and the Archaeological Survey of India. Obtaining all these
approvals can be time consuming. Sometimes, there can be intervention by third parties through court action
against land use change.
Urban Development Laws
State legislations provide for the planned development of urban areas and the establishment of regional and
local development authorities charged with the responsibility of planning and development of urban areas
within their jurisdiction. Real estate projects have to be planned and developed in conformity with the norms
established in these laws and regulations made there under and require sanctions from the Government
departments and developmental authorities at various stages. Where projects are undertaken on lands that form
part of the approved layout plans and/or fall within municipal limits of a town, generally the building plans of
the projects have to be approved by the concerned municipal or developmental authority. Building plans are
required to be approved for each building within the project area. Clearances with respect to other aspects of
development such as fire, civil aviation and pollution control are required from appropriate authorities,
depending on the nature, size and height of the projects. The regulations provide for obtaining a
completion/occupancy certificate upon completion of the project.
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