LEGAL / TAXATION SERVICES

 


 
 
                Maharashtra Rent Act

 

Buying Procedures.

 

Before buying property, it is advisable to appoint a solicitor to inspect the original title documents of the property being purchased. If the title is not clear, the number of complications arising in future may be numerous. For eg., no bank would provide a loan against a property not having a clear title, it may be difficult to transfer share certificate of the society in your name, selling of property will not be simple, etc. The following is a check list of documents that you should verify before buying a property

 

Documents pertaining to Land


Documents pertaining to Project/Building


Documents pertaining to Premises


Documents pertaining to Flats


Stamp Duty and Registration

 

 

Documents pertaining to Land.

  • Conveyance Deed or Sale Deed - This is a deed document by which the title of property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the property which you are buying is on land belonging to the society/ builder/development authority in which the property is located.
  • 7/12 Extract - This is a document issued by Tehsildar or the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner.
  • Index II - This is a document issued by the office of the Sub-Registrar of Assurances. It mainly mentions the names of the sellers & purchasers of a property for which the document is registered.
  • Search Report & Title Certificate - Title Certificate is issued by an advocate after conducting a search on the title of the property, which is intended to be purchased. The title certificate would state if the property is unencumbered and has a clear marketable title. This search report and title certificate can be obtained from one's own advocate or if the search has already been conducted by the current owner then one can have his/her advocate inspect these reports to ascertain the title of the property. This search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the "Agreement for Sale" with the intended purchaser of the flat. These documents would state whether the title to the property is clear, marketable and free from encumbrance. In other words, it would state whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely.
  • Non Agriculture Permission - If the land under consideration is agricultural and if one intends to develop the said land for residential/commercial/industrial use, then such agricultural land has to be converted to non-agricultural land and an Non Agriculture Order has to be obtained from the Collector of the District where the property is located. Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax. In cases where the conversion from agricultural use to non-agriculture use is not done within the stipulated period then, there should be an order from the concerned authority extending the period.

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Documents pertaining to Project/Building.

 

  • Development Agreement - This is an agreement entered into by the builder with the landowner. It contains details regarding the terms and conditions on which the landowner has permitted development of his property. This is where the landowner engages a third party (i.e. the developer) to develop and build on their plot of land. This agreement is generally accompanied by a Power of Attorney in favour of the developer.
  • Approved Building Plan - The building plan made by the developer needs to be approved by the Municipal Corporation or the concerned authority. The approved building plans need to be checked necessarily.
  • Commencement Certificate - This certificate is given by the Municipal Corporation permitting the developer to begin construction. This is done once the plans have been approved.
  • Completion/Occupation Certificate - This Certificate is given by the concerned authorities to the developer once the said building is complete in all respects and fit for occupation.

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Documents pertaining to Premises.

 

Under the Maharashtra Ownership Flats Act, 1963 a promoter who intends to construct a building of flats has to enter into a written Agreement for Sale with each of the persons who are to take or have taken such flats. It is also provided that the agreement should contain the particulars and also annex to such agreement the prescribed documents or the copies thereof. In case of a building, which is yet to be constructed, the agreement has to contain the particulars regarding the liability of the promoter to construct it according to the plans and specifications approved by the local authority.

The other particulars which the agreement should contain are possession date, price to be paid by the purchaser and the intervals at which the installments for the full payment are to be made specifying stage of construction, the precise nature of the body to be constituted of the persons who would take the flats, details regarding the common areas and facilities specifying the percentage of undivided interest in the common areas and facilities appertaining to the apartment agreed to be sold, a statement of the use for which the apartment is intended. The Act also specifies that copies of the title certificate issued (as specified earlier in this manual) and a copy of the approved plans and specification a list of fixtures and amenities including provisions for lifts to be provided/provided for the flat to be sold should be attached to the agreement.

A promoter, while he is in possession, and where he collects from persons who have taken over flats or are to take over flats, sums for payment of out goings even thereafter, has to pay all out goings until he transfers the property. The out goings would include ground rent, municipal and other local taxes, taxes on income, water charges, electricity charges, revenue assessment and interest on any mortgage or other encumbrances, if any.

One should also ensure that the area of the apartment has been mentioned in the agreement. It is also mandatory for the developer/promoter to convey the land in favour of the society/association of flat owners/condominium/company within a period of 4 months of completion of the project. In the sale agreement there should be a declaration/representation by the promoter/seller that he has not encumbered the property in any manner whatsoever and entered into any other agreement to sell/lease/license with any other party. It needs to be specified whether the property is vacant or in possession of any other party other than the seller.

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Documents pertaining to Flats.

 

  1. For premises being purchased in a registered co-operative society - When one sets out to purchase a flat in a registered co-operative society the documents that need to be checked initially are –
    • The share certificate issued by that society in favour of the owner. This would ensure that the owner is recognized by the society.
    • Previous chain of original conveyance/sale deeds. If the deed has been lodged for registration, then one should ask for the certified true copies of such conveyance, sale deeds, etc along with the original receipt of the Sub-Registrar where the document has been lodged for registration. c. Original stamped receipts for payments made to the previous sellers.
  2.  For premises being purchased in society which has not been registered - In this case the following documents would be required to be checked –
  • Previous chain of agreements with past owners in original with original receipt of registration(if any)/original letter of allotment issued to the first owner by the development authority. In case the latest agreement is pending registration the original receipt issued by the sub-registrar acknowledging the pending registration needs to be taken along with a certified true copy of that agreement.
  • Original stamped receipts of payments issued to the previous and present owners by the builder/development authority/society.
  •  Transfer permission from the respective authority i.e. development authority/society. Copy of approved plan & occupation certificate issued by competent authority (like the Municipal Corporation)

 

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Stamp Duty and Registration.

 

Payments of Stamp duty followed by the registration of the agreement are two important acts when one enters into an agreement with a developer/seller. Both, the developer/seller and the purchaser need to be present at the Sub-Registrars office for registering the agreement.

  1. Stamp Duty - Stamp duty is a State subject and hence would vary from state to state. The stamp duty in many states is paid as per the True market value as assessed by the Stamp Office. When an agreement is to be stamped, it needs to be unsigned and undated and after the Stamp Office affixes stamps on the agreement, one may execute the agreement. The Stamp Duty payable in various states could be ascertained from the Stamp Duty Calculator provided.
  2. Registration of an Agreement - The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty should be paid prior to the Registration.

 

Selling Procedures.

 

When one sets out to sell a flat in a registered co-operative society the documents that may be required to be provided for the perusal by the purchaser would be as follows -

  • A Copy of the share certificate issued by that society in favour of the seller.
  • Previous chain of original conveyance/sale deeds. If the deed has been lodged for registration, then one should provide a copy of such conveyance, sale deeds, etc. along with a photocopy of the receipt of the Sub-Registrar where the document has been lodged for registration.
  • Copies of stamped receipts for payments made to the previous sellers.

The intending purchaser could ask the seller to apply to the society to issue a no objection certificate indicating that the society has no objection to transfer the share certificate in favour of the intended purchaser and admitting the purchaser as a membership of that society. The certificate should also mention that the seller has no default/outstanding payments to be made to the society as of date. Set of society transfer forms, etc. for transfer of ownership needs to be duly filled and signed by the seller and purchaser and should be submitted to the concerned Society.

If the flat is a resale, where Society has not been registered, originally allotted by development authority, In the above mentioned cases the copies of the following documents may be made available to the purchaser for perusal.

If the flat is a resale or the Society has not been registered or the flat is originally allotted by development authority, copies of the following documents may be made available to the purchaser for perusal -

  •  Previous chain of agreements with past owners in original with original receipt of registration (if any)/original letter of allotment issued to the first owner by the development authority. In case the latest agreement is pending registration, the original receipt issued by the sub-registrar acknowledging the pending registration needs to be shown along with a certified true copy of that agreement.
  • Original stamped receipts of payments issued to the previous and present seller by the builder/development authority/society.
  • Transfer permission from the respective authority i.e. development authority/society.
  • Copy of approved plan & occupation certificate issued by competent authority (like the Municipal Corporation)

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What is Stamp Duty?

 

It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. If there is delay in payment, it attracts penalty. A stamp duty paid instrument/ document is considered a proper and legal instrument/ document and such gets evidentiary value and is admitted as evidence in courts. Instruments /documents not properly stamped are not admitted as evidence by the court.

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Stamp Duty FAQs

 

What is stamp duty? Why should stamp duty be paid?

It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. If there is delay in payment, it attracts penalty. A stamp duty paid instrument/ document is considered a proper and legal instrument/ document and such gets evidentiary value and is admitted as evidence in courts. Instruments /documents not properly stamped are not admitted as evidence by the court.

What is the penalty for delayed payment?

If stamp duty is not paid on time, it attracts penalty at the rate of 2 % per month on the deficit amount of the stamp duty. However maximum penalty can be only 200% of the deficit amount of the stamp duty. (This amendment has come into force from 01-05-2001) Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme will attract a lump sum penalty of Rs.250 or Rs.300 only, as the case maybe.

When is the stamp duty payable?

It is payable before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of the document means putting signature on the instrument by the person’s party to the document.

Who is liable to pay?

In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.

Is stamp duty payable on all instruments/ documents relating to the transfer of immovable property?

Except transfer by will (or by original nomination in a cooperative housing society) all transfer instruments/documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy and lease deeds have to be properly stamped before registration.

It is clarified that a when a nominee transfers the flat subsequently in the name of the legal heirs, that transfer instrument is to be stamped as per the market value. If you have purchased a flat in a co-operative housing society on or after 10-12-1985 you have to pay the stamp duty on market value as per the Ready Reckoner. A flat purchased through an agreement for sale on or before 9-12-1985 required stamp paper of Rs.5 only. However a flat purchased on or before 9-12-1985 will require stamp duty on market value at the time of conveyance of the property in favour of the society. The concept of payment of stamp duty on market value was introduced from 04-07-1980 will be charged on agreement value only.

What is the relevance of the dates 10-12-1985 and 04-07-1980?

For any flat purchased in a co operative housing society on or after 10-12-1985, it is required to pay stamp duty on market value at the time of signing the agreement itself. However, prior to 10-12-1985, such transactions of agreement for sale required a stamp paper of Rs.5 only at the time of signing the agreement. However stamp duty on market value will have to paid on all such transactions at the time of conveyance of the property in favour of the society.

From 04-07—1980 onwards, if the property is not covered under the Co-operative Society Act, you are required to pay stamp duty on market value. This payment is required at the time of execution of the document. However, prior to 04-07-1980 there was no market value concept hence agreement value was accepted for stamp duty payment.

In whose name should the stamp paper be purchased?

From 01/05/1994 stamp paper are to be purchased in the name of one of the parties to the instrument/ document. If the stamp paper is not in the name of the parties and if it is used for preparing the agreement, it will be as if no stamp paper was used. However it will not make the agreement invalid and can be enforced in law if proper stamp duty is paid subsequently.

Prior to 01/05/1995 stamp paper could be purchased in any name and was valid for any period of time. However from 01/05/1994 stamp paper is valid for a period of six months from the date of purchase and after that it is treated as ordinary paper as if it has no stamp.

In whose name should the Banker’s pay order be issued?

It should be issued in favour of “Superintendent of Stamps, Mumbai”

Is stamp duty payable on the instrument or on the transaction?

It is payable on instruments and not on transactions. Stamp duty should be charged on the basis of the contents of the instrument only. If any information essential for working out stamp duty is missing in the instrument, valuation officer can call for it. Information such as the area of the flat, number of the floors and year of construction must be mentioned in the agreement for quicker response.

What are the instruments on which it is to be paid?

Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under India Stamp Act).

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Authorised Vendors.

 

 

SR.NO

 

NAME OF THE AUTHORISED VENDOR WITH LOCATION PHONE, FAX, TELEX

1

 

 

 

The Bank of Rajasthan Limited
Vishal Apartment Shopping Centre, Andheri Kurla Road, Andheri (East), Mumbai-400069. i Phone-26836617, 26899152 Fax- 26832872

 

2

 

 

The Bank Of Rajasthan Limited
B-6, Ground Floor, Loc Milan Chandivli, ~* Andheri (East), Mumbai-400073 -r Phone - 26409205-6409

 

3

 

The Bank Of Rajasthan Limited
148, Kotmahal Society, Garodia Nagar, Ghatkopa^East), Mumbai-400077 Phone-5106664-5130166

4

 

 

The Bank Of Rajasthan Limited
Raghuvanshi Mills Compund, 11/12 Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 Phone- 24924864 - 24924885 Fax- "

 

5

 

 

The Bank Of Rajasthan Limited
Golden Corner, Pali Road, 29Ih Road Crossing, Bandra (West), Mumbai-400050 Phone- 26409205 / 26402343 Fax-

6

 

The Bank Of Rajasthan Limited
Jeevan Jyoti Building, 18/20, Kawasji Patel Street, Fort, Mumbai-400001. Phone-22841784,22870307, 22873472 « Fax-22873471

7

 

The Bank Of Rajasthan Limited
195, Kalbadevi Road, Is1 floor, Mumbai-400002 Phone- 22018953 - 22054383 - 22050417

8

 

The Bank Of Rajasthan Limited
Twin Towers, Plot No. 8, Opp.Lokhandwala Complex, Versova, Andheri (West), Mumbai-400058. Phone- 26362696-26352568

9

 

BOI Shareholding Limited
Stock Exchange, Rotunda Building, Versova, Andheri (West), Mumbai-400053. Phone-22723989 - 22723626 - 22723252

10

 

 

The Cosmos Co-Op Bank Ltd. Pune. Vile Parle Branch,
Saraswati Niwas. Plot No. 45, TPS-1, C.T.S.No. 807A,Hanuman Road, Vile Parle (East), Mumbai-400057 Phone-26191096-26152389-26128460

11

 

 

I.D.B.I Bank Ltd. Mumbai.
Central Processing Unit, Central Road, Elemacch Building, Plot No. 82/83, Road No. 7, Street No. 15, M.I.D.C. Andheri (E), MumbaU 400093. Phone-28368218

12

 

 

UNION BANK OF INDIA
Mumbai Samachar Marg Branch, Planning & Development Department, 66/80, Mumbai Samachar Marg, Fort, Mumbai- 4000023. Phone-22674938-22672131

13

 

 

CITIZENCREDIT CO-OP BANK LTD.
Central Administrative Office. Helena, 57, Mt. Carmel Road, Bandra (West), Mumbai- 400050 Phone-26401126, 26442830,26442831 Fax-26430131

14

 

H.D.F.C Bank
Sandoz House, Worli Branch, Worli, Mumbai-400018. Phone-28561818 Fax-24972195

15

 

H.D.F.C Bank
Fort Branch, Maneckji Wadia Building, Nanik Motwane Road, Fort, Mumbai-400023. Phone-28561818 Fax-22703392

16

 

H.D.F.C Bank
Legal Department, Kamala Mills Compound, Lower Parel, Mumbai-400013. , Phone-28561818 Fax-24925121

17

 

H.D.F.C Bank
Andlieri Branch, A Wing, Tradestar Building, J.B.Nagar, Andheri (East), Mumbai- 400050 Phone-28561818 Fax-

18

 

I.C.I.CI. Bank Ltd.
30, Mumbai Samachar Marg, Fort, Mumbai-400001 Phone-26531414 Fax-26531122

19

 

I.C.I.CI Bank Ltd.
Krystal Building, Water Field Road, Bandra (West), Mumbai-400050. Phone-26405412,

20

 

 

MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED.
KRUPANIDHI.9, WALCHAND HIRACHAND MARG, BALLARD ESTATE, MUMBAI - 400001. Phone-22611121/22/23 Fax-22620623, 22612954, 22614514

21

 

INDIAN BANK
Plot No- 8, Branch, 8C/32,D.K. Sandhu Marg, Chembur, Mumbai-400071Phone-25280079

 

22

 

 

INDIAN BANK
11/12, Radha Krishna Niwas, N.C. Kelkar Road,Dadar (West), Mumbai-400028.Phone-24301951,24314679, 24301129,26533639

 

23

 

 

INDIAN BANK
482, GardernView, M.M.Chotani Road,Mahim, Mumbai-400016Phone-24440713.24455617, 24468283

 

24

 

 

INDIAN BANK
Mumbai Fort Branch, United India Building, Sir P.M.Road, Fort, Mumbai- 400001.Phone-22664633/0769/2462, 22658976/8977

 

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Registration.

 

What is Registration?

Registration is the process of recording a copy of a document, transferring the title in immovable property to the office of the Registrar.

Registration acts as proof that a transaction has taken place.

The registration of a document serves as a notice of the transaction, to the persons affected by the transaction. Registration also serves as an implied notice to any person subsequently acquiring interest in the property, covered by the registered document.

When a document, which is compulsorily to be registered, is not registered, it fails to confer any title given by the document.

The real purpose of registration is to ensure that every person dealing with property for which compulsory registration is required, can confidently rely on the statement contained in the register, as being a full and complete account of all transactions by which the title may be affected. A certificate of Registration is mere evidence that a document has been registered. It is not proof that it has been executed.

When the execution of a document is directly in dispute between two parties, the fact that the document is registered is not sufficient to prove its genuineness. Registration does not automatically dispense with the necessity of independent proof that the document was executed.

Registration is done after the parties execute the document. The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act, 1908 within four months from the date of execution of the document. However, if due to any unavoidable circumstances, the document is not registered within the time limit, then the document can be registered only on making an application to the Sub-Registrar of Assurance within a further period not exceeding four months and on payment of appropriate fine.

1. Is registration compulsory for all types of transfer of immovable properties?

Ans. Except in case of transfer of shares of a co-operative housing society and housing limited company where registration is optional, virtually in all cases of transfer of immovable property like family arrangement, agreement to sell, conveyance, gift deed, lease deed (above one year), leave and license agreement, tenancy agreement, declaration deed, power of attorney to sell for consideration etc. has to be registered compulsorily under Indian Registration Act,1908 otherwise the proper legal title will not pass on to the purchaser/transferee i.e. the title will be defective if registration is not done.

2. In what languages should the document be written so that it can be registered in Mumbai?

Ans. It should be normally be written is English, Hindi, Marathi and Gujarati only.

3. After how long is the document given for registration returned?

Ans. Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is indexed, for microfilming and only then it is returned to the party, which may take a few years. All the documents lodged for registration on or from October 1, 1995 are returned to the party within a few days of indexing the same because only the photocopy is sent to Pune for microfilming. After February 1, 2002 when the registration process was computerized, normally the documents have been returned within half an hour.

4. Why does it take so long time for documents to be returned in old cases?

Ans. The above mentioned procedure is one of the reasons but the major reasons due to which the document remained pending at the office of sub-registrar and not being indexed and not returned to the Owner are as follows:-

  • Stamp Duty was not paid according to the “Market Value”.
  • Income Tax Clearance certificate U/s 230 was not attached where required (See Note (i) below).
  • N.O.C. of Appropriate Authority in Form 37-1 was not attached where required. (See Note (ii) below).
  • N.O.C. under Urban Land Ceiling Act was not attached where required.
  • Certain parties to the Agreement had not admitted execution in front of the Sub-Registrar

The above deficiencies were always pointed out at the time of registration by way of remark (such as MV, 230A, 37-1, NOC, ADM) on the registration receipt itself but due to ignorance, owners have never cared to clear them and hence documents which do not have deficiencies mentioned in the points mentioned above. However deficiency relating to non-admission is tolerated and the document is accepted and kept pending for admission only.

Note:

Income tax clearance certificate under Section 230A of Income Tax Act, 1961is now not required from 01-06-2001 even for documents accepted for registration before 01-06-2001 as requirement for such certificate was on the day of registration receipt itself but due to ignorance and a document was considered to be registered on the day it is Indexed and if it is not indexed uptil now no Income Tax Clearance certificate is required even for old cases.

N.D.C. of Appropriate Authority in Form 37-1 is also not required from 01-07-2002. As above NOC is now obtainable this is applicable even for old cases.

4. What are the paper requirements at the time of registration of documents? Please give full details.

Ans. A document should be fully stamped as per the Stamp Duty Ready Reckoner so as to confirm that proper stamp duty has been paid. The Stamp Duty Ready Reckoner is a public document and is available for inspection at a sub- registrar’s office.

For registering documents relating to property, one should go the respective registration office along with the original document and one photocopy. The document must be printed or typed on one side only and in black colour. A photocopy should be taken on only one side of the paper and the paper should be of 90 GSM thickness. There should be butter paper between the two sheets of the photocopy.

Apart from a properly executed and fully stamped duty paid document which is to be registered, the following documents are also required before the registration procedure is started.

  • No Objection Certificate under the Urban Land Ceiling Act if the area of land transferred exceeds 500 sq. mts. in Mumbai City.
  • If the land belongs to a government or semi- government body or to a charitable trust the no objection certificate of such government or semi- government body or to a charitable trust.
  • Property Card of the land on which the property is being registered is situated. This requirement is irrespective of whether land is sold or the building is being sold or any other part of the building is being sold and also irrespective of whether the seller of the property is recorded as the owner on the property card or not. In other words, even the flat owners are expected to produce this paper at the time of registration.

If property sold/purchased is in the old building and the benefit of depreciation is claimed on the market value, then any one of the following documents is to be produced as a proof of old construction:

 

o Municipal assessment bill of the building OR
o Building Completion Certificate OR
o Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building
o Original registered agreement between the builder and original purchaser of that flat or of any flat in that building.
It is better to get the document adjudicated in case the building is very old and proper depreciation is not given by the sub-registrar.
o Original Stamp Duty payment receipt
o One should go along with along with two witnesses
o Registration fees and computer service charges is to be paid in cash to sub-registrar at the time of registration

5. How does one get the document registered at the sub-registrar’s office?

Ans.

  • Bring the complete document along with other documents above.
  • Submit the document along with input form at the token window and get the token number.
  • Wait till the token number is announced.
  • On token number being announced, all parties to the document must present themselves before the sub-registrar to admit execution of the document, photographed, thumb impression and signature taken on additional sheet of paper in presence of sub-registrar.
  • Pay the required registration fees and computer service charges in cash as per the receipt (Computer service charges are @ Rs.20 per page)
  • The document will be returned within 30 minutes of getting the receipt
  • Please deal only with Officers and staff of the Registration Department who always display government identity card with Government Seal.

6. If any person who has executed the document is unable to come to sub- registrar’s office on medical grounds, then what should he do?

Ans. In case a person is unable to attend the office of the sub-registrar on medical grounds, then he should apply to the sub-registrar through a duly authorized representative stating the fact. The sub-registrar is bound to visit such person after office hours i.e. morning 9.00 a.m. to 10.00 a.m. and in the evening 5.00pm to 6.00 pm. That person shall admit in execution in presence of that sub- registrar, affix his photograph and sign and put his thumb impression on the document. The sub-registrar will take the document with him and complete all the formalities and process of registration.

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The Offices of Sub-Registrar.

 

A. Sub-Registrar of Assurances,
Old Customs House,
Ground Floor,
Shahid Bhagat Singh Marg,
Ph: 266 2853 Timings: 10 : 00 a.m. to 4 :30 p.m.
Lunch: 1 : 00 to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.

B. Sub-Registrar of Assurances,
Griha Nirman Bhavan,
Ground Floor,
Bandra (E),
Mumbai 400 051. Ph:642 2161
Timings: 10 : 00 a.m. to 4 : 30 p.m.
Lunch: 1 : 00 a.m. to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.

C. Sub-Registrar of Assurance,
Town Hall,
Collector's Office Compound,
Thane (West).

D. Sub-Registrar of Assurances,
Vasai (West).

Sub-Registrar of Assurances,
Opp. Station, Kalyan (West).
(2nd and 4th Saturdays and Sundays closed..)

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Legal Documents.

 

Specimen Forms - Transfer of shares/flat/office in a Co-op Society

Specimen Legal Forms - General

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Maharashtra Rent Act.

 

The Maharashtra Rent Control Bill, 1999 (L.C.Bill No.VI of 1993) passed with amendments by both the Legislative Council and the Legislative Assembly aims to unify the three different Rent Control Laws, in operation in the State of Maharashtra. The Bill has brought about several changes in the existing Bombay Rent Control Act which expires on 31-3-2000.

The new Act called the Maharashtra Rent Control Act, 1999 extends to the whole of the State of Maharashtra and shall come into force on the date notified by the State Government in the Official Gazette.

Exemptions (Sec.3):

The Act shall not apply to :

- any premises belonging to the Government or a local authority or against the Government … but shall apply in respect of premises let out to the Government or a local authority; - any premises let or sub-let to banks, Public Sector, Undertakings (PSU), foreign missions, international agencies, multinational companies, private and public limited companies having paid-up share capital of Rs. 1 crore or more.

- Any premises let or sub-let to banks, Public Sector Undertakings (PSU), foreign missions, international agencies, multinational companies, private and public limited companies having paid-up share capital of Rs. 1 crore or more.

- The State Government may direct that all or any of the provisions of the Act shall, subject to such conditions and terms as it may specify, not apply to premises held by religious or charitable institutions administered by a local authority and to premises held by an university…provided the tenancy rights of the existing tenants in such premises are not adversely affected.

Act does not apply to the premises, which are let or given on license for less than 12 months.

Definations (Sec.7):

Standard Rent means standard rent fixed by the Court plus an increase of 5%; or the rent at which the premises were first let on or after 1-10-1987.

Tenant includes deemed tenant, sub-tenant, heir, legal representative, assignee. Transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply even on the death of any subsequent tenant …

Rent in excess of Standard Rent illegal; any contravention punishable with imprisonment upto 3 months or fine upto Rs. 5000/- or with both.

Increase in rent (Sec. 11) :

4% p.a. from the date of the commencement of the Act;

15% p.a. for improvements and alterations other than tenantable repairs which the landlord is required to carry out, provided 70% pf the tenants consent in writing;

25% p.a. for special or structural repairs, exclusive of any repairs, exclusive of any repairs carried out under the MHADA Act ;

Due to any increase in taxes; to the extent of increase.

Recovery of Possession :

No eviction suit can be filed on the ground of arrears until the expiration of 90 days next after notice of demand served upon the tenant.

No decree for evicton shall be passed in an eviction suit on the ground of arrears, if the tenants pays upwithin 90 days from the date of service of the summons of the suit the arrears of rent with 15% interest and continues to pay the standard rent and permitted increases till the suit is finally decided and also pays the costs of the suit.

Landlord entitled to recover possession from licensee :

On expiry of license; in default can apply to the Competent Authority. Such licensee liable to pay damages at double the rate of the license fee – an arrangement of license in writing shall be consclusive evidence of the fact stated therein.

Time Limit for disposal of suits/appeals :

For suits : 12 months from the date of service of summons

For appeals : 6 months

Pending Suits :

Pending suits and proceedings not to be affected by the new Act and to be heard and disposed of as if the new Act had not been passed.

Offences (Sec.53)

- Charging rent in excess – non cognizable – imprisonment 3 months – fine 5000/- or both (Sec.10);

- Failure to commence the work of repairs after the tenant has vacated by the date specified in the decree or fails to comply with the Court’s Order of repossesion after repairs – cognizable imprisonment 3 months – fine 1000/- or both (Sec.17);

- Failure to occupy the premises recovered on the ground of bonafide requirement – cognizable – imprisonment 3 months – fine 5000/- or both (Sec.18) :

- Failure to carry out any undertaking given to Court or failure to comply with Court’s Order under a decree obtained on the ground of bonafide requirement by the landlord for the demolishing the premises for the immediate purpose of erecting new building – cognizable – imprisonment 30 days – fine 5000/- or both (Sec.19);

- Failure to intimate to tenant the date on which the erection of the erection of the new building shall be completed – cognizable – imprisonment 3 months / fine 5000/- or both (Sec. 21);

- To cut-off withhold essential supply or service – upto Rs. 100/- for each day during which the default continues (Sec.29);

- Failure to restore any essential supply or service – imprisonment 3 months, fine 1000/- or both (Sec.29);

- Conversion of residential into commercial premises by landlord - imprisonment 6 mts – fine 10000/- or both (Sec.30);

- Failure to issue the rent receipt – fine 100/- for each day of default (Sec.31);

- Failure to enter into a written agreement of tenancy or leave & license or have the same registered – imprisonment 3 months – fine 5000/- or both (Sec.55).


Tenancy agreement to be compulsorily registered (Sec.55) :

- agreement of tenancy or agreement of leave & license to be in writing and shall be registered – responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions on which the premises were given shall prevail, unless proved otherwise.

Stamp duty on Tenancy Agreement (Art. 5 of Stamp Act)

- for non-residential premises = 1000/- per sq.metre;
- for residential premises = 100/- per sq.metre. (in Mumbai).

Right of Tenant & Landlord to received lawful charges (Sec.56) (i.e.PUGDI) :

- It is lawful for the tenant to receive any pugdi as a condition of relinquishment, transfer, assignment of his tenancy;
- It is lawful for the landlord to receive any pugdi for grant or renewal of a tenancy or for giving his consent to transfer the tenancy to any other person.

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