MADHYA PRADESH MUNICIPAL (ACHAL SAMPATTI ANTARAN) RULES, 2016

PREAMBLE

In exercise of the powers conferred by Section read with Section 433 of the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and Section 109 read with Section 355 of the Madhya Pradesh Municipalities Act, 1961 (No. 37 of 1961), the State Government, hereby makes the following rules, namely:-

Rule - 1. Short title, commencement and application.

(1)     These rules may be called the "Madhya Pradesh Municipal (Achal Sampatti Antaran) Rules, 2016".

 

(2)     They shall come into force from the date of their publication in the Madhya Pradesh Gazette.

 

(3)     They shall apply on all Municipal Corporations, Municipal Councils and Nagar Parishad.

Rule - 2. Definitions.

(1)     In these rules, unless the context otherwise requires,-

(a)      "Act" means the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and the Madhya Pradesh Municipalities Act, 1961 (No. 37 of 1961);

 

(b)      "Chief Executive Officer" means the Municipal Commissioner in case of a Municipal Corporation and Chief Municipal Officer in case of a Municipal Council or a Nagar Parishad;

 

(c)      "Competent authority" means the officer prescribed under clause (i) of rule 5 of these rules to sanction the transfer of immovable property;

 

(d)      "Conversion" means the grant of freehold right in respect of lands as mentioned;

 

(e)      "Council" Means the "Municipal Council" or "Nagar Parishad" constituted under the Madhya Pradesh Municipalities Act, 1961 (No. 36 of 1961) or "Municipal Corporation Council" under the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956);

 

(f)       "Format" means the format appended to these rules;

 

(g)      "Gift" means the transfer of certain existing movable or immovable property made voluntarily and without consideration by one person called the donor, to another, called the donee, and accepted by or on behalf of the donee;

 

(h)     "Immovable Property" means the building, land, store, roof, scaffold, staircase etc. owned by Urban Local Body but it does not include the standing timber, growing crops or grass;

 

(i)       "Land" includes benefit arising out of land, houses and things attached to the earth, or permanently fastened to anything attached to the earth and also land which is being built upon or is built upon or covered with water;

 

(j)       "Lease" lease of immovable property means a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

 

(k)      "Market Value" means the value of land/house assessed according to guidelines issued by the Collector under the Madhya Pradesh Bajar Mulya Margdarshak Siddhanton ka Banaya Jana Tatha Unka Punrikshan Niyam, 2000 made under the Indian Stamp Act, 1899 (No. 2 of 1899);

 

(l)       "Premium" means the amount which was fixed by the allottee at the time of allotment except lease rent;

 

(m)    "Reserve price" means price determined by the Chief Executive Officer of Urban Local Body for the purpose of transfer of property;

 

(n)     "Sale" means a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised;

 

(o)      "Securities" means the deposit of funds under the conditions as may be determined;

 

(p)      "Section" means the Section of the Act;

 

(q)      "Transfer of Property" means to confer the right to use of immovable property for certain period to one or more persons by the Urban Local Body under the conditions as may be determined at the premium and lease rent or as free hold;

 

(r)      "Urban Local Body" means Municipal Corporation constituted under section 7 of the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and the Municipalities and Nagar Parishad constituted under Section 5 of the Madhya Pradesh Municipalities Act, 1961 (No. 36 of 1961);

 

(2)     Words and expressions used but not defined in these rules shall have the same meanings as assigned to them in the Act.

Rule - 3. Transfer of Immovable Property.

(1)     By inviting Tender-

No immovable property, except when its transfer is in the interest of local body concerned or in the public interest, shall be leased out or sold on conversion or otherwise transferred by the Municipal Corporation/Municipal Council/Nagar Parishad as the case may be except to a person who has proposed the highest rate in the tender invited for such purpose. The information for inviting tender, property descriptions, terms of lease or sale, date of submission of tender, time and place shall be mentioned in the tender notice, which shall be published atleast 15 days prior to the date of tender, in atleast two newspapers, of which one shall be a local Hindi newspaper and shall also be published on the notice board of Municipal Corporation/Municipal Council/Nagar Parishad/Collector and Commissioner's Offices as the case may be. The calculation of reserve price for the transfer of property for tender shall be made according to Rule 6. The competent authority may accept any tender out of the tenders received, but where he does not accept the highest tender, he shall give the reason to do so.

(2)     Without inviting tender-

If it is not desirable to invite tender as above in closed envelopes for the settlement under rule 10, or for the transfer of immovable property for educational or religious or for public purposes to public entities, than Urban Local Body with the prior approval of the State Government, can transfer without inviting proposal in closed envelopes and the Chief Executive Officer of the concerned local body shall send the proposal to the competent authority alongwith the following information, namely:-

(i)       The nature of Property that is, land, shop, house etc;

 

(ii)      Area of such property with site plan;

 

(iii)     In case of Land acquired/purchased by council, the purpose for which the land was acquired/purchased;

 

(iv)    The purpose for which the land or property is fixed in regional development plan;

 

(v)      The purpose for which the properly has been currently in use;

 

(vi)    The purpose for which such property would be used by the person to whom the recommendation for allocation of the property has been made;

 

(vii)   In the case of building or shop, costs and completion dates of construction;

 

(viii)  The reserve price for properties and calculation sheet of the annual lease rent;

 

(ix)    Terms of allocation:

Provided that any transfer of such immovable property may be made after the approval of the State Government on appropriate premium determined by the competent authority. However, the annual lease rent of the land shall be 0.5 percent of the reserve price:

Provided further that the deed in registered document shall be executed between Urban Local Body and concerned allottee in respect of the transfer after the amount has been deposited and after the allocation of land, the entire expenditure shall be borne by the allottee and after the execution of registered deed, the possession of land allotted by Urban Local Body shall be handed over to allottee in appropriate time:

Provided also that notwithstanding anything contained in rule 3, the transfer of property for educational, religious or for any public purpose to registered public entities shall be made with the prior approval of the State Government in accordance with the prescribed terms and rates.

Rule - 4. Mutation of immovable property on Lease.

(1)     Mutation of immovable property may be made after lawful transfer of property. Authorized officer shall invite objections, by publishing a notice in two daily newspapers prior to a final decision and after hearing the objections received shall pass an order on the application according to law. Considering the application of mutation, if it comes to the knowledge, that there has been a violation of the terms and conditions of the lease on the spot, then mutation shall be made after compounding the violation under the provisions of these rules. The process of mutation shall be subject to the following conditions, namely:-

 

(i)       A fresh agreement shall be made again after the mutation between new allottee and the Urban Local Body mentioning the previous conditions for the remaining period, the entire expenditure for registration of new agreement shall be borne by the new allottee.

 

(ii)      The previous agreement executed with the previous allottee shall be deemed canceled after the mutation. The modified agreement shall contain all the previous terms and conditions.

 

(iii)     The application of local body assets submitted by the allottee, which for the time being granted property by the improvement trust, Municipal Corporation, Municipal Council, Nagar Parishad as plot/shop/building on lease/rent/license, the records of them shall be reconcile with the official register and record:

Provided that,

(a)      If the records are not available in the office, the file of related property shall be reconstructed. Related records/evidence shall be obtained from concern for this purpose and after matching the copy with the originals and after creating the record the objection shall be invited by issuing a public notice in two daily newspapers. The file shall be reconstructed after determination of the document by resolving the objections.

 

(b)      If any dispute arises in respect of enjoyment of the rights of the use of lease of land/building/shop, then the process of mutation shall be suspended for a period of three months keeping in view to provide an opportunity to the concern to get the matter decided by a competent Court of law. After expiry of the said period, the decision of the Executive Officer for reconstructing the file shall be final.

 

(2)     On an application of mutation given by its legal successor on account of the death of Lessee, the mutation shall be made by depositing a fee of Rs. 5000/-. In case of transfer of immoveable property, the mutation charges shall be calculated from the date of transfer of lease at the rate of 1.00 percent of premium amount in case of plot/building allotted for residential purpose and 2.00 percent of premium amount in case of plot/building allotted for Commercial/Industrial purpose. The values of property shall be calculated as per the guidelines issued by the Collector.

 

(3)     If, the lease holder has constructed the apartment according to the conditions of lease and constructed apartments have either sold out or rest of the apartments are under the ownership of lease holder, then in such case lease shall be made in favour of apartment holders. After scrutinizing such case the process of making lease deed shall be made in favour of the apartment holders as follows:-

(i)       Each apartment holder shall be entitled of the undivided portion of the allocated leased plot in proportion of the title mentioned in the sale deed executed. The ratio shall be calculated by dividing the area (total built up area) of the apartment of apartment holder to the total area of all the apartments of the constructed building. On the submission of the application on the basis of undivided area obtained after such calculated ratio, the mutation may be made after taking mutation fee of Rs. 2000/;

(ii)      The renewal of the lease shall be made as per the provisions of rule 17, after the completion of the time limit of the said lease;

Rule - 5. Competent authority for transfer of immovable property.

(i)       In case of transfer of immovable property by sale, lease, gift, mortgage or exchange the power of approving the transfer shall be vested in the authorities as under:-

(ii)      The Chief Executive Officer of the concern Urban Local Body shall prepare and forward the proposal for the approval with detail information of the property related to the transfer. If a immoveable property of the ownership of Urban Local Body is suitable for the transfer, then the required documents related with ownership shall be collected after survey of such property. The Chief Executive Officer shall verify by submitting the details of the property that the transfer of such property is in interest of the Urban Local Body. The proposal shall be submitted before the council of the Urban Local Body for decision after completing above process. The Council shall take the decision after considering all the facts after mentioning the details of the property for transfer and the reserve price and lease rent shall be decided accordingly.

Rule - 6. Reserve price.

(1)     The reserve price of the property to be transferred shall be calculated as follows:-

(i)       Price of land used under immovable property-as per the collector guidelines prevailing;

(ii)      The actual cost of construction of the immovable property, which includes the cost of the other development activities for the benefit of the immovable property such as public toilets, road construction, plantation, street lighting, parking, arrangement of drinking water etc;

The value obtained by adding the amount as mentioned in sub-clause (i) and sub-clause (ii) shall be the reserve price. Provided that, after such calculation, the amount known shall be rounded off to the nearest hundred rupee;

(2)     As stated above, the annual lease rent of immovable property shall be 0.5 percent of the value of premium received in the tender as calculated according to sub-rule (1).

Rule - 7. Security deposit.

(1)     The transfer of immovable property shall be made by inviting tender. In inviting tender the amount of Security deposit shall be calculated by the council under the condition, that the amount may not be less than 2.5 percent of reserved price. This amount shall be deposited compulsorily by each bidder by means of cash/bank draft, otherwise no person shall be eligible to participate in tendering and similarly no tender shall be accepted without above security deposit;

 

(2)     The 25 percent amount of the selling price shall be liable to be deposited by highest bidder after submitting the bid within 21 days from the date of submission of tender and the rest of the amount which may be included the security deposit shall be deposited within 120 days from the date of receiving of written notice of final sanction of tender. If, the bidder does not deposit the 25 percent amount of selling price or the rest of the amount within the communicated period, then the Chief Executive Officer shall notify that the " Sell or Lease is disqualified" and tender shall be invited again.

 

(3)     The security deposit of the bidders shall be returned immediately after completion of the process of tender or immediately after opening the proposal except the security deposit of the highest bidder.

 

(4)     The earnest money shall be refunded after declaring the invalid tender proposal offer, but the interest on earnest money shall not be paid.

Rule - 8. Transfer of property.

Subject to the provisions of these rules and the conditions mentioned in Format-I, each property shall be transferred by lease for a period of 30 years and the lessor shall have the right to renew the lease.

Rule - 9. Reservation in the transfer of Immovable Property.

In respect of the sale and transfer of immovable property such as plots, buildings, shop etc. reservation shall be made available in the following manner or in accordance with the provisions prevailing in this behalf.

(a)      For the allocation of immovable property of reserved category, the tender proposal shall be invited in closed envelopes from the relevant reserved category.

 

(b)      Property of reserve category may only be transferred to the same category. Process of mutation shall be made in accordance with of rule 4. Conversion may also be made for the property of reserved category.

 

(c)      If no tender has been received after inviting public notice for 3 times for the property of reserved category, then with the approval of the competent authority prescribed in rule 5 such property may be transferred to general category by inviting tender. The publication of public notice for tender shall be made according to the process mentioned in rule 3.

Rule - 10. The allocation under settlement.

(1)     Shops may be allotted to the shopkeepers under settlement by removing temporary shopkeepers who are permitted on daily fee or lease or otherwise other shopkeepers who are doing business at that place since at least 3 years by constructing new shops on the land owned by Urban Local Body or allotted Government land. Shop may be allotted without inviting tender with the previous approval of the authorized committee constituted for this purpose. Provided that the premium rate of such shops should not be less than the reserve price and the lease rent/rent should be 0.5 percent of the premium.

 

(2)     The authorized committee shall be empowered to recover the premium rate by fixing easy installment in case of settlement but the initial fee for registration shall not be less than twenty five percent of the total cost and the maximum monthly installments shall not be more than twenty four. Provided that the lease rent/rent shall be paid regularly.

 

(3)     Compulsion of reservation under rule 9 shall not apply in case of settlement process.

 

(4)     Authorized Committee shall consist of the following, namely:-

Rule - 11.

The charges of stamp duty, registration etc in all cases of lease deed shall be borne by lease holder.

Rule - 12.

The construction of building on plots may be made after getting adequate permissions as per building bye-laws and regional plans for the time being in force.

Rule - 13.

The lease holder shall take possession of the property on the date prescribed or notified to him and he shall pay all local taxes and other taxes which may be leviable by the owner or by lease holder and further that the possession of the property shall not be given without depositing the required premium amount. The possession of property shall be given so far as possible within 15 days of the date of registration of lease deed.

Rule - 14.

The lease holder receiving a plot from Urban Local Body shall pay the amount of premium in advance as determined by the Chief Executive Officer under these rules from the beginning of the financial year in which the lease deed has been executed.

Lease rent on the plots to be given on lease under the provisions of these rules shall be 0.5 percent of Collector guideline rate or highest value received in tender, whichever is higher. However in such cases where land has been allocated to Urban Local Body by the Revenue Department, then the Urban Local Body shall determine the lease rent in such a manner, so that the Urban Local Body may not receive the lease rent less than the lease rent that is received by the Revenue Department from the lease holder:

Provided that in case of lease deed executed previously, the lease rent shall be paid according to the terms of agreement executed between lessor and lease holder.

Rule - 15.

(1)     If a lease holder does not comply with the conditions stated in the lease or violated the rules, then the Chief Executive Officer may terminate the lease of the property and disposed the property in such a manner as may be considered appropriate.

 

(2)     The Chief Executive Officer may re-enter on plot or constructed building on the plot after termination of lease due to violation of the conditions of lease. A notice of 15 days shall be given to the previous lease holder with an intention to hand over the occupancy of the plot within 15 days to the Urban Local Body and to remove the constructed infrastructure on his own expenses. An officer of the Urban Local Body authorized by the Chief Executive Officer may re-entered on such plot and take the infrastructure constructed on it in his possession, provided that an opportunity of hearing in person shall be given to the lease holder.

 

(3)     The Chief Executive Officer may make a valuation of constructed infrastructure by the lease holder from any registered evaluator and at the time of calculations of reserved price shall include the value of constructed infrastructure. At the time of disposal of this plot an amount shall be get deposited from the successful highest bidder after including the cost of the constructed infrastructure in the reserve price following these rules.

Rule - 16. Annual rent shall be given in advance.

Every lease of Immovable property (Land) shall be with a condition that during the lease period annual lease rent shall be paid in advance and it shall be the responsibility of the lease holder to deposit the said amount before the prescribed period. An interest of 12 percent shall be imposed as a penalty in case of failure in depositing lease rent before the prescribed date.

Rule - 17. Renewal of Lease.

The power to renew the lease for next 30 years for the same purpose for which the land has been transferred in original lease deed after the expiry of the prescribed period of property transferred on lease shall be vested in Council, provided that the premium amount shall be determined as 0.5 percent of the prevailing market value for residential plot/building and as 1.00 percent of prevailing market value in case of use as commercial/industrial purposes and rate of the lease rent shall be determined as 4 times of the rate of rent of original lease deed or 0.5 percent of prevailing market value whichever is less. The renewal of lease deed shall be made under the following guidelines:-

(a)      An application to renew the lease may be submitted in the last year of the period of expiry of lease but four months before the date of expiration. After the expiry of the date, the application for the renewal may be received with a compounding charge of Rs. 1000/- per year.

(b)      In the cases, in which lease rent and other dues are not deposited in prescribed time period by the lease holder, then the penalty shall be levied at the rate of 12 percent on outstanding amount and renewal may be made after recovering penalty of Rs. 5000/- by renunciation the right to re-entre.

 

(c)      In the case where the lease holder has started the construction work delayed but it has been completed during the period of the consideration of the case, then by renunciation the right to reenter, the amount shall be recover by imposing penalty on the following parameter and renewal may be made:-

(d)      In case where construction work has not been started by the lease holder and also not completed during the period of the consideration of the case i.e. plot is vacant or partially constructed, then in such case by renunciation the right to reenter renewal may be made by recovering an amount two times on the basis of the population as mentioned in clause (c) above.

 

(e)      In case of a transfer of plot by gift or by sale without proper permission within the time period of lease, the lease may be renewed by recovering the amount on the basis of the population as mentioned in clause (c) by renunciation the right to re-enter.

 

(f)       If a plot has been transferred in contravention of the terms of lease, in a way in which division of plot takes place, then by recovering the penalty amount of Rs. 10000/- for each divided plot the renewal may be made for whole undivided plot. If an approval has been given by Directorate town and Country Planning for division of plot then the renewal may be made separately for each divided plot by recovering the compounding amount.

 

(g)      In case of plot is currently used for the purpose other than the purpose stated in the lease, lease may be renewed for the current use of the plot after getting approval for such converted use from Town and Country Planning after determining premium rate of 2 percent and the lease rent of 2 percent of the current market value. If Town and Country Planning Department has not approved the conversion of use then in that case it shall be mandatory to convert the use of the land/plot of lease in its original use otherwise the Chief Executive Officer may re-enter in to the plot.

 

(h)     The lease may be renewed after recovering penalty of Rs. 5000/- in the case where after receiving a notice for the violation of the conditions the activities consistent to the conditions has been started by closing the activities related with the violation of the conditions.

Rule - 18. No objection for the Bank loans.

A no objection certificate may be issued according to the Format "II" for obtaining loan from the financial institutions on the plot or constructed structure given on lease by Urban Local Body. The Chief Executive Officer may issue such no objection certificate in favor of the financial institution. The Chief Executive Officer shall be responsible to maintain a separate register for it.

Rule - 19. Registration of Transfer.

Registration of every agreement of the transfer of immovable property shall be made according to the provisions of Registration Act, 1908 (No. 16 of 1908).

Rule - 20. Right to conversion.

(1)     The land of the ownership of Municipal body, which is used for residential or commercial purpose or for other purposes and which is allotted to any person, organization etc. on lease then such land of lease may be brought into the category of right of conversion.

 

(2)     Subject to the provisions of these rules, any eligible lease holder may make an application to the Chief Executive Officer in Format-"III", for grant of right of conversion in respect of land held by him in lease hold right.

 

(3)     Any land which is of the improvement trust/special area development authority/Development Authority or other dissolved body and is under the control of or in ownership of Urban Local Body and the developed and allotted plots on it are given on lease for residential or commercial or other purposes for a period of 30 years or more than 30 years may be converted in to freehold:

Provided that, no such land of lease shall be converted in to freehold whose lease conditions specifically prohibit conversion or on which leasehold right have accrued under The Madhya Pradesh Nagriya Kshetron ke bhoomihin vyakti (pattadhari Adhikaron ka Pradan kiya jana) Adhiniyam, 1984 or Rajiv Gandhi Patta Aashrya Yojana or Mukhyamantri Aashrya Yojana or which is not of the ownership of Urban Local Body.

(4)     Chief Executive Officer shall be the authorized officer for conversion, who shall be empowered to convert the lease hold rights into the freehold right under the provisions of these rules.

 

(5)     On receipt of the application, the Chief Executive Officer shall issue a public notice inviting objections for the conversion of such land by giving 15 days time in at least two news papers of which one shall be a Hindi News paper and also display on the notice board of Municipal Corporation/Municipal Council/Nagar Parishad/Collector and Commissioner's offices and the following points shall be taken into consideration for hearing the objections that-

(i)       the lease of the land is valid;

 

(ii)      all dues related to the conditions of lease have been paid;

 

(iii)     no breach of the conditions of lease has occurred and if a breach has occurred then it has been regularized under the provisions of these rules by depositing compounding fee;

 

(iv)    the conditions of lease do not prohibit conversion;

 

(v)      an affidavit to this effect has been filed by the lessee that no case involving land under conversion is pending before any Court or Authority;

 

(vi)    other necessary documents and fee according to the instructions of the Government for the time being in force, shall be borne by the lease holder;

 

(vii)   any other point which may be deemed appropriate by the Chief Executive Officer.

 

(6)     The application of conversion shall, as far as possible, be finally decided within a period of 120 days by the Chief Executive Officer.

Rule - 21. Conversion charges.

The conversion Charges shall include-

(i)       A sum of 01 percent for residential purpose and 02 percent for commercial purpose of the market value prevailing on the date of granting conversion shall be fixed in accordance with the rules prevailing for diversion of areas for the purpose of land. The lease rent of remaining period of the lease or for a period of 10 years, whichever is less, shall be get deposited in a lump sump.

 

(ii)      The conversion charges shall be paid within 30 days from the date of issuance of the order of conversion. The conversion deed shall be executed only after the payment of conversion charges, provided that if the lease rent has been paid in advance, such payment shall be set-off against the conversion charges mentioned above.

 

(iii)     The Chief Executive Officer shall, after passing an order granting conversion (freehold) right under these Rules, and on receipt of conversion charges and other dues, if any, execute a conveyance deed in format-IV, and the same shall be registered under the Registration Act, 1908 (No. 16 of 1908) and cost of such registration including stamp duty shall be borne by the lease holder. After the registration of this conveyance deed, the land conveyance deed certificate related with the conversion of plot shall be issued mandatorily within 15 days by the Chief Executive Officer.

Rule - 22. Register of immovable Property.

A Register of immovable property vested in or owned by the urban local body shall be maintained in Format-V appended to these rules by the Chief Executive Officer.

Rule - 23. Repeal and Saving.

The Madhya Pradesh Municipal Corporation (Transfer of Immovable Property) Rules, 1994 and the Madhya Pradesh Municipality (Transfer of Immovable Property) Rules, 1996 corresponding to these rules in force immediately before the commencement of these rules shall stand repealed:

Provided that anything done or any action taken under the rules so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules until not inconsistent with the provision of these rules.

 

-->

MADHYA PRADESH MUNICIPAL (ACHAL SAMPATTI ANTARAN) RULES, 2016

PREAMBLE

In exercise of the powers conferred by Section read with Section 433 of the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and Section 109 read with Section 355 of the Madhya Pradesh Municipalities Act, 1961 (No. 37 of 1961), the State Government, hereby makes the following rules, namely:-

Rule - 1. Short title, commencement and application.

(1)     These rules may be called the "Madhya Pradesh Municipal (Achal Sampatti Antaran) Rules, 2016".

 

(2)     They shall come into force from the date of their publication in the Madhya Pradesh Gazette.

 

(3)     They shall apply on all Municipal Corporations, Municipal Councils and Nagar Parishad.

Rule - 2. Definitions.

(1)     In these rules, unless the context otherwise requires,-

(a)      "Act" means the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and the Madhya Pradesh Municipalities Act, 1961 (No. 37 of 1961);

 

(b)      "Chief Executive Officer" means the Municipal Commissioner in case of a Municipal Corporation and Chief Municipal Officer in case of a Municipal Council or a Nagar Parishad;

 

(c)      "Competent authority" means the officer prescribed under clause (i) of rule 5 of these rules to sanction the transfer of immovable property;

 

(d)      "Conversion" means the grant of freehold right in respect of lands as mentioned;

 

(e)      "Council" Means the "Municipal Council" or "Nagar Parishad" constituted under the Madhya Pradesh Municipalities Act, 1961 (No. 36 of 1961) or "Municipal Corporation Council" under the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956);

 

(f)       "Format" means the format appended to these rules;

 

(g)      "Gift" means the transfer of certain existing movable or immovable property made voluntarily and without consideration by one person called the donor, to another, called the donee, and accepted by or on behalf of the donee;

 

(h)     "Immovable Property" means the building, land, store, roof, scaffold, staircase etc. owned by Urban Local Body but it does not include the standing timber, growing crops or grass;

 

(i)       "Land" includes benefit arising out of land, houses and things attached to the earth, or permanently fastened to anything attached to the earth and also land which is being built upon or is built upon or covered with water;

 

(j)       "Lease" lease of immovable property means a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

 

(k)      "Market Value" means the value of land/house assessed according to guidelines issued by the Collector under the Madhya Pradesh Bajar Mulya Margdarshak Siddhanton ka Banaya Jana Tatha Unka Punrikshan Niyam, 2000 made under the Indian Stamp Act, 1899 (No. 2 of 1899);

 

(l)       "Premium" means the amount which was fixed by the allottee at the time of allotment except lease rent;

 

(m)    "Reserve price" means price determined by the Chief Executive Officer of Urban Local Body for the purpose of transfer of property;

 

(n)     "Sale" means a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised;

 

(o)      "Securities" means the deposit of funds under the conditions as may be determined;

 

(p)      "Section" means the Section of the Act;

 

(q)      "Transfer of Property" means to confer the right to use of immovable property for certain period to one or more persons by the Urban Local Body under the conditions as may be determined at the premium and lease rent or as free hold;

 

(r)      "Urban Local Body" means Municipal Corporation constituted under section 7 of the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and the Municipalities and Nagar Parishad constituted under Section 5 of the Madhya Pradesh Municipalities Act, 1961 (No. 36 of 1961);

 

(2)     Words and expressions used but not defined in these rules shall have the same meanings as assigned to them in the Act.

Rule - 3. Transfer of Immovable Property.

(1)     By inviting Tender-

No immovable property, except when its transfer is in the interest of local body concerned or in the public interest, shall be leased out or sold on conversion or otherwise transferred by the Municipal Corporation/Municipal Council/Nagar Parishad as the case may be except to a person who has proposed the highest rate in the tender invited for such purpose. The information for inviting tender, property descriptions, terms of lease or sale, date of submission of tender, time and place shall be mentioned in the tender notice, which shall be published atleast 15 days prior to the date of tender, in atleast two newspapers, of which one shall be a local Hindi newspaper and shall also be published on the notice board of Municipal Corporation/Municipal Council/Nagar Parishad/Collector and Commissioner's Offices as the case may be. The calculation of reserve price for the transfer of property for tender shall be made according to Rule 6. The competent authority may accept any tender out of the tenders received, but where he does not accept the highest tender, he shall give the reason to do so.

(2)     Without inviting tender-

If it is not desirable to invite tender as above in closed envelopes for the settlement under rule 10, or for the transfer of immovable property for educational or religious or for public purposes to public entities, than Urban Local Body with the prior approval of the State Government, can transfer without inviting proposal in closed envelopes and the Chief Executive Officer of the concerned local body shall send the proposal to the competent authority alongwith the following information, namely:-

(i)       The nature of Property that is, land, shop, house etc;

 

(ii)      Area of such property with site plan;

 

(iii)     In case of Land acquired/purchased by council, the purpose for which the land was acquired/purchased;

 

(iv)    The purpose for which the land or property is fixed in regional development plan;

 

(v)      The purpose for which the properly has been currently in use;

 

(vi)    The purpose for which such property would be used by the person to whom the recommendation for allocation of the property has been made;

 

(vii)   In the case of building or shop, costs and completion dates of construction;

 

(viii)  The reserve price for properties and calculation sheet of the annual lease rent;

 

(ix)    Terms of allocation:

Provided that any transfer of such immovable property may be made after the approval of the State Government on appropriate premium determined by the competent authority. However, the annual lease rent of the land shall be 0.5 percent of the reserve price:

Provided further that the deed in registered document shall be executed between Urban Local Body and concerned allottee in respect of the transfer after the amount has been deposited and after the allocation of land, the entire expenditure shall be borne by the allottee and after the execution of registered deed, the possession of land allotted by Urban Local Body shall be handed over to allottee in appropriate time:

Provided also that notwithstanding anything contained in rule 3, the transfer of property for educational, religious or for any public purpose to registered public entities shall be made with the prior approval of the State Government in accordance with the prescribed terms and rates.

Rule - 4. Mutation of immovable property on Lease.

(1)     Mutation of immovable property may be made after lawful transfer of property. Authorized officer shall invite objections, by publishing a notice in two daily newspapers prior to a final decision and after hearing the objections received shall pass an order on the application according to law. Considering the application of mutation, if it comes to the knowledge, that there has been a violation of the terms and conditions of the lease on the spot, then mutation shall be made after compounding the violation under the provisions of these rules. The process of mutation shall be subject to the following conditions, namely:-

 

(i)       A fresh agreement shall be made again after the mutation between new allottee and the Urban Local Body mentioning the previous conditions for the remaining period, the entire expenditure for registration of new agreement shall be borne by the new allottee.

 

(ii)      The previous agreement executed with the previous allottee shall be deemed canceled after the mutation. The modified agreement shall contain all the previous terms and conditions.

 

(iii)     The application of local body assets submitted by the allottee, which for the time being granted property by the improvement trust, Municipal Corporation, Municipal Council, Nagar Parishad as plot/shop/building on lease/rent/license, the records of them shall be reconcile with the official register and record:

Provided that,

(a)      If the records are not available in the office, the file of related property shall be reconstructed. Related records/evidence shall be obtained from concern for this purpose and after matching the copy with the originals and after creating the record the objection shall be invited by issuing a public notice in two daily newspapers. The file shall be reconstructed after determination of the document by resolving the objections.

 

(b)      If any dispute arises in respect of enjoyment of the rights of the use of lease of land/building/shop, then the process of mutation shall be suspended for a period of three months keeping in view to provide an opportunity to the concern to get the matter decided by a competent Court of law. After expiry of the said period, the decision of the Executive Officer for reconstructing the file shall be final.

 

(2)     On an application of mutation given by its legal successor on account of the death of Lessee, the mutation shall be made by depositing a fee of Rs. 5000/-. In case of transfer of immoveable property, the mutation charges shall be calculated from the date of transfer of lease at the rate of 1.00 percent of premium amount in case of plot/building allotted for residential purpose and 2.00 percent of premium amount in case of plot/building allotted for Commercial/Industrial purpose. The values of property shall be calculated as per the guidelines issued by the Collector.

 

(3)     If, the lease holder has constructed the apartment according to the conditions of lease and constructed apartments have either sold out or rest of the apartments are under the ownership of lease holder, then in such case lease shall be made in favour of apartment holders. After scrutinizing such case the process of making lease deed shall be made in favour of the apartment holders as follows:-

(i)       Each apartment holder shall be entitled of the undivided portion of the allocated leased plot in proportion of the title mentioned in the sale deed executed. The ratio shall be calculated by dividing the area (total built up area) of the apartment of apartment holder to the total area of all the apartments of the constructed building. On the submission of the application on the basis of undivided area obtained after such calculated ratio, the mutation may be made after taking mutation fee of Rs. 2000/;

(ii)      The renewal of the lease shall be made as per the provisions of rule 17, after the completion of the time limit of the said lease;

Rule - 5. Competent authority for transfer of immovable property.

(i)       In case of transfer of immovable property by sale, lease, gift, mortgage or exchange the power of approving the transfer shall be vested in the authorities as under:-

(ii)      The Chief Executive Officer of the concern Urban Local Body shall prepare and forward the proposal for the approval with detail information of the property related to the transfer. If a immoveable property of the ownership of Urban Local Body is suitable for the transfer, then the required documents related with ownership shall be collected after survey of such property. The Chief Executive Officer shall verify by submitting the details of the property that the transfer of such property is in interest of the Urban Local Body. The proposal shall be submitted before the council of the Urban Local Body for decision after completing above process. The Council shall take the decision after considering all the facts after mentioning the details of the property for transfer and the reserve price and lease rent shall be decided accordingly.

Rule - 6. Reserve price.

(1)     The reserve price of the property to be transferred shall be calculated as follows:-

(i)       Price of land used under immovable property-as per the collector guidelines prevailing;

(ii)      The actual cost of construction of the immovable property, which includes the cost of the other development activities for the benefit of the immovable property such as public toilets, road construction, plantation, street lighting, parking, arrangement of drinking water etc;

The value obtained by adding the amount as mentioned in sub-clause (i) and sub-clause (ii) shall be the reserve price. Provided that, after such calculation, the amount known shall be rounded off to the nearest hundred rupee;

(2)     As stated above, the annual lease rent of immovable property shall be 0.5 percent of the value of premium received in the tender as calculated according to sub-rule (1).

Rule - 7. Security deposit.

(1)     The transfer of immovable property shall be made by inviting tender. In inviting tender the amount of Security deposit shall be calculated by the council under the condition, that the amount may not be less than 2.5 percent of reserved price. This amount shall be deposited compulsorily by each bidder by means of cash/bank draft, otherwise no person shall be eligible to participate in tendering and similarly no tender shall be accepted without above security deposit;

 

(2)     The 25 percent amount of the selling price shall be liable to be deposited by highest bidder after submitting the bid within 21 days from the date of submission of tender and the rest of the amount which may be included the security deposit shall be deposited within 120 days from the date of receiving of written notice of final sanction of tender. If, the bidder does not deposit the 25 percent amount of selling price or the rest of the amount within the communicated period, then the Chief Executive Officer shall notify that the " Sell or Lease is disqualified" and tender shall be invited again.

 

(3)     The security deposit of the bidders shall be returned immediately after completion of the process of tender or immediately after opening the proposal except the security deposit of the highest bidder.

 

(4)     The earnest money shall be refunded after declaring the invalid tender proposal offer, but the interest on earnest money shall not be paid.

Rule - 8. Transfer of property.

Subject to the provisions of these rules and the conditions mentioned in Format-I, each property shall be transferred by lease for a period of 30 years and the lessor shall have the right to renew the lease.

Rule - 9. Reservation in the transfer of Immovable Property.

In respect of the sale and transfer of immovable property such as plots, buildings, shop etc. reservation shall be made available in the following manner or in accordance with the provisions prevailing in this behalf.

(a)      For the allocation of immovable property of reserved category, the tender proposal shall be invited in closed envelopes from the relevant reserved category.

 

(b)      Property of reserve category may only be transferred to the same category. Process of mutation shall be made in accordance with of rule 4. Conversion may also be made for the property of reserved category.

 

(c)      If no tender has been received after inviting public notice for 3 times for the property of reserved category, then with the approval of the competent authority prescribed in rule 5 such property may be transferred to general category by inviting tender. The publication of public notice for tender shall be made according to the process mentioned in rule 3.

Rule - 10. The allocation under settlement.

(1)     Shops may be allotted to the shopkeepers under settlement by removing temporary shopkeepers who are permitted on daily fee or lease or otherwise other shopkeepers who are doing business at that place since at least 3 years by constructing new shops on the land owned by Urban Local Body or allotted Government land. Shop may be allotted without inviting tender with the previous approval of the authorized committee constituted for this purpose. Provided that the premium rate of such shops should not be less than the reserve price and the lease rent/rent should be 0.5 percent of the premium.

 

(2)     The authorized committee shall be empowered to recover the premium rate by fixing easy installment in case of settlement but the initial fee for registration shall not be less than twenty five percent of the total cost and the maximum monthly installments shall not be more than twenty four. Provided that the lease rent/rent shall be paid regularly.

 

(3)     Compulsion of reservation under rule 9 shall not apply in case of settlement process.

 

(4)     Authorized Committee shall consist of the following, namely:-

Rule - 11.

The charges of stamp duty, registration etc in all cases of lease deed shall be borne by lease holder.

Rule - 12.

The construction of building on plots may be made after getting adequate permissions as per building bye-laws and regional plans for the time being in force.

Rule - 13.

The lease holder shall take possession of the property on the date prescribed or notified to him and he shall pay all local taxes and other taxes which may be leviable by the owner or by lease holder and further that the possession of the property shall not be given without depositing the required premium amount. The possession of property shall be given so far as possible within 15 days of the date of registration of lease deed.

Rule - 14.

The lease holder receiving a plot from Urban Local Body shall pay the amount of premium in advance as determined by the Chief Executive Officer under these rules from the beginning of the financial year in which the lease deed has been executed.

Lease rent on the plots to be given on lease under the provisions of these rules shall be 0.5 percent of Collector guideline rate or highest value received in tender, whichever is higher. However in such cases where land has been allocated to Urban Local Body by the Revenue Department, then the Urban Local Body shall determine the lease rent in such a manner, so that the Urban Local Body may not receive the lease rent less than the lease rent that is received by the Revenue Department from the lease holder:

Provided that in case of lease deed executed previously, the lease rent shall be paid according to the terms of agreement executed between lessor and lease holder.

Rule - 15.

(1)     If a lease holder does not comply with the conditions stated in the lease or violated the rules, then the Chief Executive Officer may terminate the lease of the property and disposed the property in such a manner as may be considered appropriate.

 

(2)     The Chief Executive Officer may re-enter on plot or constructed building on the plot after termination of lease due to violation of the conditions of lease. A notice of 15 days shall be given to the previous lease holder with an intention to hand over the occupancy of the plot within 15 days to the Urban Local Body and to remove the constructed infrastructure on his own expenses. An officer of the Urban Local Body authorized by the Chief Executive Officer may re-entered on such plot and take the infrastructure constructed on it in his possession, provided that an opportunity of hearing in person shall be given to the lease holder.

 

(3)     The Chief Executive Officer may make a valuation of constructed infrastructure by the lease holder from any registered evaluator and at the time of calculations of reserved price shall include the value of constructed infrastructure. At the time of disposal of this plot an amount shall be get deposited from the successful highest bidder after including the cost of the constructed infrastructure in the reserve price following these rules.

Rule - 16. Annual rent shall be given in advance.

Every lease of Immovable property (Land) shall be with a condition that during the lease period annual lease rent shall be paid in advance and it shall be the responsibility of the lease holder to deposit the said amount before the prescribed period. An interest of 12 percent shall be imposed as a penalty in case of failure in depositing lease rent before the prescribed date.

Rule - 17. Renewal of Lease.

The power to renew the lease for next 30 years for the same purpose for which the land has been transferred in original lease deed after the expiry of the prescribed period of property transferred on lease shall be vested in Council, provided that the premium amount shall be determined as 0.5 percent of the prevailing market value for residential plot/building and as 1.00 percent of prevailing market value in case of use as commercial/industrial purposes and rate of the lease rent shall be determined as 4 times of the rate of rent of original lease deed or 0.5 percent of prevailing market value whichever is less. The renewal of lease deed shall be made under the following guidelines:-

(a)      An application to renew the lease may be submitted in the last year of the period of expiry of lease but four months before the date of expiration. After the expiry of the date, the application for the renewal may be received with a compounding charge of Rs. 1000/- per year.

(b)      In the cases, in which lease rent and other dues are not deposited in prescribed time period by the lease holder, then the penalty shall be levied at the rate of 12 percent on outstanding amount and renewal may be made after recovering penalty of Rs. 5000/- by renunciation the right to re-entre.

 

(c)      In the case where the lease holder has started the construction work delayed but it has been completed during the period of the consideration of the case, then by renunciation the right to reenter, the amount shall be recover by imposing penalty on the following parameter and renewal may be made:-

(d)      In case where construction work has not been started by the lease holder and also not completed during the period of the consideration of the case i.e. plot is vacant or partially constructed, then in such case by renunciation the right to reenter renewal may be made by recovering an amount two times on the basis of the population as mentioned in clause (c) above.

 

(e)      In case of a transfer of plot by gift or by sale without proper permission within the time period of lease, the lease may be renewed by recovering the amount on the basis of the population as mentioned in clause (c) by renunciation the right to re-enter.

 

(f)       If a plot has been transferred in contravention of the terms of lease, in a way in which division of plot takes place, then by recovering the penalty amount of Rs. 10000/- for each divided plot the renewal may be made for whole undivided plot. If an approval has been given by Directorate town and Country Planning for division of plot then the renewal may be made separately for each divided plot by recovering the compounding amount.

 

(g)      In case of plot is currently used for the purpose other than the purpose stated in the lease, lease may be renewed for the current use of the plot after getting approval for such converted use from Town and Country Planning after determining premium rate of 2 percent and the lease rent of 2 percent of the current market value. If Town and Country Planning Department has not approved the conversion of use then in that case it shall be mandatory to convert the use of the land/plot of lease in its original use otherwise the Chief Executive Officer may re-enter in to the plot.

 

(h)     The lease may be renewed after recovering penalty of Rs. 5000/- in the case where after receiving a notice for the violation of the conditions the activities consistent to the conditions has been started by closing the activities related with the violation of the conditions.

Rule - 18. No objection for the Bank loans.

A no objection certificate may be issued according to the Format "II" for obtaining loan from the financial institutions on the plot or constructed structure given on lease by Urban Local Body. The Chief Executive Officer may issue such no objection certificate in favor of the financial institution. The Chief Executive Officer shall be responsible to maintain a separate register for it.

Rule - 19. Registration of Transfer.

Registration of every agreement of the transfer of immovable property shall be made according to the provisions of Registration Act, 1908 (No. 16 of 1908).

Rule - 20. Right to conversion.

(1)     The land of the ownership of Municipal body, which is used for residential or commercial purpose or for other purposes and which is allotted to any person, organization etc. on lease then such land of lease may be brought into the category of right of conversion.

 

(2)     Subject to the provisions of these rules, any eligible lease holder may make an application to the Chief Executive Officer in Format-"III", for grant of right of conversion in respect of land held by him in lease hold right.

 

(3)     Any land which is of the improvement trust/special area development authority/Development Authority or other dissolved body and is under the control of or in ownership of Urban Local Body and the developed and allotted plots on it are given on lease for residential or commercial or other purposes for a period of 30 years or more than 30 years may be converted in to freehold:

Provided that, no such land of lease shall be converted in to freehold whose lease conditions specifically prohibit conversion or on which leasehold right have accrued under The Madhya Pradesh Nagriya Kshetron ke bhoomihin vyakti (pattadhari Adhikaron ka Pradan kiya jana) Adhiniyam, 1984 or Rajiv Gandhi Patta Aashrya Yojana or Mukhyamantri Aashrya Yojana or which is not of the ownership of Urban Local Body.

(4)     Chief Executive Officer shall be the authorized officer for conversion, who shall be empowered to convert the lease hold rights into the freehold right under the provisions of these rules.

 

(5)     On receipt of the application, the Chief Executive Officer shall issue a public notice inviting objections for the conversion of such land by giving 15 days time in at least two news papers of which one shall be a Hindi News paper and also display on the notice board of Municipal Corporation/Municipal Council/Nagar Parishad/Collector and Commissioner's offices and the following points shall be taken into consideration for hearing the objections that-

(i)       the lease of the land is valid;

 

(ii)      all dues related to the conditions of lease have been paid;

 

(iii)     no breach of the conditions of lease has occurred and if a breach has occurred then it has been regularized under the provisions of these rules by depositing compounding fee;

 

(iv)    the conditions of lease do not prohibit conversion;

 

(v)      an affidavit to this effect has been filed by the lessee that no case involving land under conversion is pending before any Court or Authority;

 

(vi)    other necessary documents and fee according to the instructions of the Government for the time being in force, shall be borne by the lease holder;

 

(vii)   any other point which may be deemed appropriate by the Chief Executive Officer.

 

(6)     The application of conversion shall, as far as possible, be finally decided within a period of 120 days by the Chief Executive Officer.

Rule - 21. Conversion charges.

The conversion Charges shall include-

(i)       A sum of 01 percent for residential purpose and 02 percent for commercial purpose of the market value prevailing on the date of granting conversion shall be fixed in accordance with the rules prevailing for diversion of areas for the purpose of land. The lease rent of remaining period of the lease or for a period of 10 years, whichever is less, shall be get deposited in a lump sump.

 

(ii)      The conversion charges shall be paid within 30 days from the date of issuance of the order of conversion. The conversion deed shall be executed only after the payment of conversion charges, provided that if the lease rent has been paid in advance, such payment shall be set-off against the conversion charges mentioned above.

 

(iii)     The Chief Executive Officer shall, after passing an order granting conversion (freehold) right under these Rules, and on receipt of conversion charges and other dues, if any, execute a conveyance deed in format-IV, and the same shall be registered under the Registration Act, 1908 (No. 16 of 1908) and cost of such registration including stamp duty shall be borne by the lease holder. After the registration of this conveyance deed, the land conveyance deed certificate related with the conversion of plot shall be issued mandatorily within 15 days by the Chief Executive Officer.

Rule - 22. Register of immovable Property.

A Register of immovable property vested in or owned by the urban local body shall be maintained in Format-V appended to these rules by the Chief Executive Officer.

Rule - 23. Repeal and Saving.

The Madhya Pradesh Municipal Corporation (Transfer of Immovable Property) Rules, 1994 and the Madhya Pradesh Municipality (Transfer of Immovable Property) Rules, 1996 corresponding to these rules in force immediately before the commencement of these rules shall stand repealed:

Provided that anything done or any action taken under the rules so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules until not inconsistent with the provision of these rules.