An Overview of Gaothan Properties

Date: 28-August,2022Last Updated: 23-September,2022
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The Gaothan properties, if you are from Maharashtra, you might have heard of this term before!

So today, let's explore all about Gaothan land properties.

What is the meaning of Gaothan?

Gaothan is derived from Marathi words that mean both "Village" and "Site," respectively. Gaothan properties and land comes under the old villages of Maharashtra.

What is a Gaothan Property?

Gaothan Properties, according to Maharashtra Land Revenue Code 1966, is a land parcel that is included within the site of a village, city, or town under section 122.

When you compare these properties to the other types of land near city limits, they are very cheap; however, they should be approved by the development authority. In Mumbai alone, there are 52 BMC recognised Gaothan land.

Are they Legal? Can we buy a Gaothan Property?

A Gaothan property is legal as long as the owner holds proper property titles or the properties are built under government schemes such as the 12.5 percent CIDCO Gaothan scheme etc.

The proper legal documentation from organizations and authorities such as BMC or CIDCO (along with others mentioned below) is counted as a legal entitlement.

In the usual cases, CIDCO or BMC themselves acquire Gaothan Land from the owners and allocate it to developers for constructing residences. If you are planning to buy these properties directly from Gaothan owners, then you should get a letter from the owner and also pay a transference fee to the authority.

Gaothan land parcel is a rather complicated property choice; hence make sure that you cover all your basis before the purchase of the same.

You can check the legality of Gaothan properties at the office of the revenue department or even their website if the property is part of a government-led scheme.

What is 12.5 CIDCO Gaothan scheme?

Under this scheme, CIDCO allots the land to the villagers of the region in exchange for the farmland acquired from him/her earlier for infrastructural development. He/She is allowed, say, for example, to construct within 12.5 meters of land for every 100 square meters he owns.

The beneficiaries of this 12.5 percent Gaothan expansion scheme are decided by Revenue document 7/12, and over half of the buildings in Navi Mumbai are created under this scheme.

What are the documents required for purchasing a Gaothan Property?

  • Award Copy: This document is a significant issue from the development authority that it allows 12.5 percent of the land to the allottee. It will contain the allottee's name and the details of the plot.
  • Letter of Allotment: This document showcases the proof of allotment of the plot to the land owner.
  • Letter of Intent: The LOI is a document issued by the development authority to the allottees who hold the award copy.
  • Lease Agreement: Gaothan Properties are essentially leasehold properties between owners and development authorities. This lease agreement is also an important document.
  • Transfer Charge Documents: As mentioned earlier, the buyers should pay transfer charges to the concerned authority.
  • Final Order: This document is issued to the allottee transferring the property to his name.
  • Tripartite agreement: This document is an agreement between the development authority, villager, and the third party (developer/builder), which contains all information about the transfer rights and details.

To conclude, in 2019, the Bombay High Court temporarily stopped the BMC from acquiring any more Gaothan properties or land. Thus there will not be any new Gaothan buildings soon. Hence be cautious before any purchase, and don't go ahead without proper consultation with Revenue Department.

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