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indianlawlearner   01 May 2021

Land dispute between foreign organization and indian society

A non-profit organization registered in USA buys land in Chennai in the name of an unregistered society in the year 1967 by assigning a society member as its representative. Next year, 1968 the society is registered in Chennai.  Now dispute arises if land belongs to the international non profit organization or the Indian society 

1) is this document Legally valid?

2) can the registered society claim this land which was bought the previous year in their society's name ( because it was bought for society?

3) Who has the legal authority to own this land - Indian society or international organization ?

4) without registering itself as a branch in india,  could a foreign organization buy land in Chennai in the year 1967 by just registering the land in unregistered society's name and now claim it as theirs?  Was it possible and legal in the year  1967? 

Kindly quote relevant sections of law of you are aware.

Thank you



Learning

 8 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     01 May 2021

 

  1. First and foremost, in what way the matter has affected you, do you have a local-standi in the matter to take up with the Courts, who shall first examine this point.
  2. Who is in possession of the said land the unregistered society?
  3. Whether any structures were built in these lands with due permission from the local Civic Authorities and the organization has been paying taxes in all these years
  4. What is the origin of the NGO in question?
  5. As of now even, Foreign Embassies need to take prior permission to purchase land in India and that too nonagricultural land. 
  6. We need to examine the Foreign Exchange position prevailing in 1967. However, when present rules are strict to the extent that even Foreign Embassies need prior permission to purchase non-agricultural land, the position in 1967 must have been too strict then.  That is why then the NGO purchased land in the name of unregistered Society which was later registered.
  7. To the best of my knowledge, unregistered societies cannot own or purchase any immovable property. But, it is not known whether the NGO has obtained appropriate ratification subsequent to the registration of the society.

Therefore, with the available information, it is difficult to exactly clarify the position.  It is better you approach a Chartered Accountant who specialised in Foreign Exchange matters and seek his/her clarification so that the rules in 1967 also can be examined vis-a-vis the rules relating to purchase of immovable property by unregistered Societies in 1967.

 

Sankaranarayanan (Advocate)     01 May 2021

Repeated query                                                                                                                                    .

Dr J C Vashista (Advocate)     01 May 2021

It is absurd and ridiculous to repeat same story time and again.

Pradipta Nath (Advocate)     01 May 2021

Better to seek a paid up conference as this required many intellectual inputs!

G.L.N. Prasad (Retired employee.)     01 May 2021

Posting the same query, again and again, serves no purpose and against the discipline of the forum.

T. Kalaiselvan, Advocate (Advocate)     02 May 2021

 The Non profit organization was permitted to buy the land by a registered sale deed, hence the sale deed will define the title to the property, especially since the property was registered on the name of the society, the society becomes the absolute owner of the property.

The disputing party can approach court with a suit for declaration  to declare its title to the property on the basis of the documentary evidences in its possession.

However if the possession and enjoyment of the property is held by the society concerned then the so called claim by the foreign buyer may not be maintainable.

indianlawlearner   03 May 2021

Thank you Sir

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     03 May 2021

Here in the issue, a foreign NGO is involved. If a foreign NGO was not permitted to acquire immovable property in India, registration and registered sale deed and efflux of time since then notwithstanding, the sale would be null and void. Therefore, the matter has to be examined right from the first transaction and the eligibility of the party/ies in purchasing immovable property in India.  Better to approach a Chartered Accountant who is specializing in Forex matters and get this matter clarified first.

 

Of course, all this provided the issue is real and not posted here for academic interest.


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