Ownership of Agricultural Land
sachin
(Querist) 29 March 2010
This query is : Resolved
As per the provisions of The Bombay Tenancy and Agricultural Lands Act, 1948 "Transfer to Non Agriculturist barred"
Accordingly a Director of a Company, who is an agriculturist purchased Agricultural land in Maharashtra in his own name, though the consideration for the same was paid by the Company. The 7/12 extracts reflects only the name of the Director as the owner of the said property. As the consideration paid by the company for the purchase of the said land was many years back and presently there are no records to substantiate that the said land is actually owned by the company and the director had purchased in a representative capacity only as he is an agriculturist.
Now the company wants to sell the land and receive the consideration in its own name, the sub registrar in not permitting as the company's name does not feature on the 7/12 extract.
How do we go about it? What documentation shall be requires to be executed between the Company and its Director so the consideration can be paid directly to the Company.
Please advise.
bhagwat patil
(Expert) 29 March 2010
if land is purchased by the person who is an agriculturist though he is the director of the company he is in personal capacity the owner of the land. consideration will go to director"s a/c first. he may as per his sweet choice infuse the funds in share holdings in capital a/c of the company.by the way where the land is sitiuated.for specific call bhagwat patil 9422773303
Raj Kumar Makkad
(Expert) 29 March 2010
This is a clear fraud played by the director with the company. Such director might have purchased the land in the name of company and might have signed the sale-deed just as a representative of the company but he misused his position willfully or erroneously but legally he is owner of the mentioned land as on date.
So if he is ready then get his declaration or make him a party as seller and this may be mentioned in that deed that the property under sale actually belongs to company and the erroneously his name is depicting thereon. If he is ready then registrar cannot raise any hurdle otherwise company has been cheated and in such situation, it is appropriate to get changed the title from such director in favour of company.
Kumar Thadhani
(Expert) 02 April 2010
Yes Mr. Makkad has rightly judged this query since the consideration of the land is paid by the company, why 7/12 shoud reflect the name of the director it is clear cheating frauding and mischief and misappropriation of funds of the company bt the director. So such case it is duty of the director to get change the title of land in the company or else company has been cheated.
