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For prospective builders it will not be possible for them to register a site on unconverted land unless it comes within limits and is regularized by State scheme. Even if it is possible for a builder to somehow get it registered, the builder will find it difficult to procure bank loans and or FDI’s as the case may be. The stack of houses itself can be constructed with local Panchayat approval.
The documents required for title scrutiny are R.T.C., parent deeds, Mutation certificate, layout plan, contracts between builder and land owner, relevant family tree, tax paid receipt, encumbrance certificate, site visit by Commissioner etc. Further, in my opinion in some States there is no need to convert the land before putting it to use for non agricultural purpose9s); check the same within local limits! For the same assistance of a local Advocate is a must to sail one through local laws. Also note as FEMA restricts NRI’s/ PIO’s from purchasing farm lands, the builder will be able to sell bits of lands only to Indian residents. If the land is in a State in India where conversion is required, the builder can convert the same and sell it to NRI’s also. Alternatively, a builder can get the land exempted from the purview of the Land Reforms Act (S. 109). The third option is conversion from agricultural to non agricultural use. Sale of plots as farm land is possible in some States. These are very general opinion and the requirements will vary from case to case based on setting eye on a particular State and as per interest of querist and fees structure are also different in each State. All these are possible for a high end – networking mover - shaker person(s).
This is how in nutshell builders get agriculture land at cheap rates and then convert / develop them into housing schemes and or commercial properties schemes and seek general public interest into buy and sell resorts to plots and or villas to flats and or commercial complex thus which gets developed there.