12.5% CIDCO Land
12.5% gaothan scheme of CIDCO - The basis of 99% of construction in Navi Mumbai
Most buildings constructed in Navi Mumbai are built on something called 12.5% Gaothan Scheme land. Read all about it.
In most cases, the flats purchased in Navi Mumbai are built by builders on something called a 12.5% Gaothan expansion scheme (also called 'साडे बारह टक्का' plot). In this case, the land was initially allotted by CIDCO to a local villager (gaonwalla), in exchange for his farmland, which CIDCO took over. This plays a crucial role in real estate development and real estate in Navi Mumbai.
The exact beneficiary of this scheme is decided by land revenue documents and a document called 7/12 (saat baaraah).These are available with the village Talati, Tehsildar, Patwari, Collector etc.
Basically, the ratio of this acquisition was 12.5%, which means that if the villager owned 100 sq meters of farmland, he was allotted 12.5 meters of land, on which he was free to do construction in Navi Mumbai or sell it for a profit. This forms a key aspect of land acquisition and development strategies.
In such cases,the documents required are
Award Copy
A type of letter issued by CIDCO,specifying the Name of the villager to whom CIDCO has decided to give 12.5% of the land acquired by it.It is proof that the villager is entitled to a parcel of land from CIDCO. Till this stage, the place and exact spot of allotment is not known to the villager. The only thing he knows is that he will be allotted a specified area of land.
Letter of Intent
Once CIDCO is ready to allot the piece of land to the villager holding the award copy,it issues a letter of Intent to the villager telling him the same.He is then shown the exact plot that he will be allotted and his approval obtained via a signature.
Letter of Allotment
Once all the approvals of the villager are obtained, a letter of allotment is issued which specifies the villager's name and exact demarcation of his plot.
Lease Agreement
Since CIDCO does not sell any plots (it only gives plots on long term 60 yr lease),it signs a Lease agreement with the villager which specifies the exact terms of the lease.It includes the time limit for constructing the structure, the fines and penalties imposed in case of any violations of the time schedule, transfer charges to be paid to CIDCO and approval of CIDCO incase any new title or interest is created in the property etc.
Transfer charges
After the lease agreement is signed by the villager, he pays the CIDCO transfer charges and other CIDCO charges.
Final Order (First)
Once all the stipulations of the Lease agreement are complied with a Final Order (a type of a letter on CIDCO letterhead) is issued to the Villager which clearly and conclusively gives the rights,title and interest to him.
Tripartite Agreement
This is a type of agreement by which the villager transfers his rights, title and interest on the land to a third party, namely, the builder/developer/construction company. This could be done for various reasons including lack of funds, expertise etc. Transfer charges are paid to CIDCO and CIDCO now admits the builder/developer/construction company in its records as the owner of the land.
Lease Agreement (with builder)
Once again, CIDCO signs the Lease Agreement with builder, which binds the builder to the terms and conditions set by cidco for development of the plot and construction on it. It states all the details like the time for construction, penalties etc.
Final Order (Second)
Its a letter issued by CIDCO stating conclusively that the rights title and interest of the said plot now belong to the builder and not the villager.
- Once these documents are in place, the builder takes over and starts the procedures to construct the building. This involves getting permissions from various agencies like CIDCO and NMMC, Fire dept etc.
- After completion, the builder/developer obtains the Occupancy Certificate.
- Only after obtaining the Occupancy Certificate only can the builder sign the lease deed with CIDCO.
Final order after Lease Deed
This is the semi-final document that is signed between builder and CIDCO which prove that the builder has followed everything stated in the Lease agreement and has completed and complied with all the conditions in that Lease Agreement. It is signed after the Occupancy Certificate is obtained by the builder.
Final Order (Third)
After the Lease Deed Another 'Final Order' is issued to the builder by CIDCO stating that his name is now registered as the lease holder of the plot.
Final Order (After Society Formation and conveyance deed with CIDCO)
After the builder sells 60% of the flats to buyers, he is supposed to form the society within 4 months and finally give the conveyance (management) to the Society within another 6 months. He should handover these rights and title to the society via something called Conveyance Deed. After the conveyance deed, the society pays the transfer charge and gets the full rights to the plot and building.
This lease deed and final order are the most important document that a flat buyer should insist on, once the Occupancy certificate is issued to the building. Society formation, Conveyence of land in favour of the society etc will become all the more difficult if this document is not available. Understanding the 12.5% Gaothan Scheme is essential for making informed real estate investment decisions and achieving your real estate goals in Navi Mumbai.
The 12.5% Gaothan Scheme (GES) introduced by CIDCO is a remarkable initiative that aims to provide affordable housing to the residents of Gaothans in Maharashtra. Under this scheme, eligible residents are entitled to receive a plot of land measuring 12.5% of the total land area developed by CIDCO.
CIDCO's GES has been designed to address the housing needs of those living in Gaothans, which are traditional villages within urban areas. By allocating a portion of developed land, CIDCO ensures that residents have access to affordable housing options and can continue living in their ancestral homes.
This scheme not only benefits the residents but also contributes to the overall development and urban planning efforts undertaken by CIDCO. It helps in creating a balanced living environment by preserving the cultural heritage and social fabric of Gaothans while integrating them into modern urban landscapes.
The 12.5% Gaothan Scheme (GES) serves as an exemplary model for inclusive development, promoting social equity and providing affordable housing solutions for communities residing in Gaothans. Through this initiative, CIDCO showcases its commitment to ensuring sustainable urban growth and improving the quality of life for all its residents.
Documents required to buy a Gaothan property
Following documents that are critical at the time of buying a Gaothan property. These documents are as follows:
Award Copy
Letter of allotment issued by the development authority
Letter of intent issued by the development authority
Award copy which acts as the proof of allotment of the plot of land
Lease of agreement which is signed by the owner of the property and the development authority
A tripartite agreement (if applicable)
Final order issued to the allottee which acts as proof of title transfer of the property.
Permitted Activities by the Gaothan Expansion plan
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Making housing
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Retailers, restaurants, financial institutions, personal care clinics, and repair shops
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Colleges. Furthermore, other social institutions and community centres.
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Worship spaces serve as storage areas for crops, manure, feed, and other necessities.
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Playgrounds and parks
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Fishing, boat storage, boat maintenance and repair, and gasoline storage Fish and nets drying
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Public restrooms
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Service industries
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Cold storage and warehouse on plots no larger than 0.20 hectares.
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Centers, pharmacies, and healthcare facilities
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Local government organisations, for example, are critical public resources and services.
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Domestic animal stables, with a maximum of five pets per story.
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Traditional housing sectors
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