Allotment letter for site compensated by BDA

[paarun]

Hello All, I am checking for a site in Anjanapura. The first owner says this site has been allotted to him by BDA as compensation for land acquired from him by BDA and in this scenario there wont be any allotment letter, but the sale deed executed between BDA and him will contain all the transactions. Is this true, will there be not allotment letter in such transactions?

Thanks a lot, as always.

[hosathota]

That is not true. There will be allotment letter for that. Infact allotment letter even mentions that the owner should furnish all original documents related to the land which he is compensated for.

[paarun]

Thanks. My seller has agreed to get a copy of the allotment letter from BDA. He does not have the layout plan in Anjanapura too. How do we get this?

[ashwath]

That is not true. There will be allotment letter for that. Infact allotment letter even mentions that the owner should furnish all original documents related to the land which he is compensated for.

Hi hosathota,

I am also looking for a plot and it is also a compensated site given by BDA, but the site is sold by the farmer who got the compensated site to someone in 2010 and he is now selling it, please inform whether there are any issues in buying compensated site and also what documents are to verified before buying it

Thanks
Ashwath

[deepv5]

Hello Ashwath,

Generally there should be no issues with these sites. But you can never say - particularly when prices escalate fast, people turn greedy. These are popularly referred as landowners' sites. But you need to be careful in your verification - People prefer BDA sites since there are less chances of legal issues. But in the case of land-owners, sometimes some guy comes with some vague paper to say that he had a stake in the land originally acquired by BDA and he was unaware of it and says that he has a stake and threatens saying he will go to court - So you need to be thorough with paperwork. It is not enough to get the BDA documents verified, but you have to also check the history of the ownership of the land which was originally acquired from the land-owner by BDA and ensure that in the all the names of guys involved in compensation(Sometimes the new site alloted by BDA to the landowner may not include all names. It may be just in the name of father and not sons, for example). In such a situation it is important to get no-objection declarationfrom everyone(such as adult sons and daughters) involved with the original land acqusition transactions.

For the above reason, the landowner sites sell at less than market price - so if you are really confident, you can bargain..

Regards,
Pradeep

[ashwath]

Hello Ashwath,

Generally there should be no issues with these sites. But you can never say - particularly when prices escalate fast, people turn greedy. These are popularly referred as landowners' sites. But you need to be careful in your verification - People prefer BDA sites since there are less chances of legal issues. But in the case of land-owners, sometimes some guy comes with some vague paper to say that he had a stake in the land originally acquired by BDA and he was unaware of it and says that he has a stake and threatens saying he will go to court - So you need to be thorough with paperwork. It is not enough to get the BDA documents verified, but you have to also check the history of the ownership of the land which was originally acquired from the land-owner by BDA and ensure that in the all the names of guys involved in compensation(Sometimes the new site alloted by BDA to the landowner may not include all names. It may be just in the name of father and not sons, for example). In such a situation it is important to get no-objection declarationfrom everyone(such as adult sons and daughters) involved with the original land acqusition transactions.

For the above reason, the landowner sites sell at less than market price - so if you are really confident, you can bargain..

Regards,
Pradeep

Pradeep,

Thanks for the information, one more query, if the original farmer land acquired by BDA is self acquired instead of ancestral property, inform whether there will be any issues

Regards,
Ashwath

[deepv5]

Hello Ashwath,

If the land which was acquired by BDA was owned by a single person(farmer) and it was acquired with his own money and not out of selling inherited property, then it is a relatively cleaner transaction. Then the only thing you have to then do is get a no objection letter signed by all his children who have come to majority and also his wife. A better way is to make them sign as witnesses while registering the property.
So, even if you are buying a site from a person who has bought the compensated site belonging to a farmer(1st alloted owner), more than checking the current BDA ownership documents such as EC, Khatha etc, you should look at the first transaction(Sale to the current owner from the compensated owner) and the original acquisition documents carefully.

Best regards,
Pradeep