Venkatesha 18 August 2018

Farm layout - managing common areas and facilities

In a farm layout of about 100 acres, plots are made and sold to individuals as 1 acre plots. Here agricultural activities are taken up by a Agro company. The same company is also providing common facilities and amenities like swimming pool, club house, roads, park, nursery etc. in common land which is currently owned by the company selling the plots. Can someone guide me what will be the status of ownership of the land areas which is about 20 acres? Can the company own it and charge maintenance from the land owners or how will this be managed?

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4 Replies

P. Venu (Advocate) 19 August 2018

Is it the agro company which has sold the plots? if so, any suggestion depends upon the terms set out in the sale deed.

Venkatesha 19 August 2018

Yes Sir, the Agro company has sold the plots

Dr J C Vashista (Advocate) 20 August 2018

Whether the promotor company has got the status of land transferred from agriculture to residential has to be found out from local municipal and revenue authorities through a local prudent lawyer.

Venkatesha 20 August 2018

The company is selling agricultural plots, not residential and agricultural activities will be taken up on a contract farming agreement for 5 yrs. There will be no residential development for this period. Post 5 yrs the landowner is free to do anything and the company will exit from any contract. The question is what will happen to the common facilities provided like roads, parks, nursery etc. and other amenities. Company says the owners will have to form an association and continue maintenance.