INDIA Law and Practice Contributed by: Vivek Chandy, Archana Tewary, Kumarmanglam Vijay and Brijita Prakash, JSA
maintaining land records. Many state governments are working to integrate blockchain-based ledgers into the digital land record system, and implementing measures to digitise records to make the process of land surveys and other procedural aspects (including payment of taxes) easier. The sector is attracting debt investment from private credit funds where traditional bank financing is una - vailable, especially in early development. Additionally, family offices have become significant investors in real estate and private credit. A growing trend is the fractional ownership of com - mercial real estate, allowing retail investors to par - ticipate in a high-yield market. The Securities and Exchange Board of India (SEBI) amended the SEBI (REIT) Regulations 2014 to introduce a framework for SM REITs on 8 March 2024, to regulate fractional own - ership platforms. 1.3 Proposals for Reform The government has previously made certain amend - ments to FDI policy in real estate. While there are no significant indications from the government at the time of writing, foreign investors are hopeful that the next step will be liberalising multi-brand retail trading. The government has announced various initiatives to increase investments in the warehousing and logistics sectors, development of sustainable and smart cities, and development of Tier-2 and Tier-3 cities. India’s National Logistics Policy and other steps taken to develop the logistics sector in India have in turn ben - efited the real estate sector.
occupy and deal with the property in the manner con - tractually agreed. Indian law also recognises statu - tory tenants, who are protected under applicable rent control statute and can be evicted only on lim - ited grounds. However, most modern developments leased to corporates are not affected by rent control legislation. Since land is a state subject under the Indian Consti - tution, tenancy matters are governed by state-specific statutes; matters not covered by state legislation are governed by TOPA, a central legislation. Additionally, the Model Tenancy Act 2021 aims to increase the efficacy and convenience of regulat - ing the renting of premises in a transparent manner. States are at liberty to adopt this template with neces - sary changes or make changes to their existing ten - ancy and rent laws. Licences and Easements Licences are governed under the Indian Easements Act 1882; easements are also recognised separately. A licensee acquires the permission of the owner to use the property, and use is restricted to contractual terms without possession being granted to the licensee. On the other hand, an easement is a right that a person has to compel the owner of another property to allow something to be done or to refrain from doing some - thing on the property of that owner, for the benefit of the easement right-holder. 2.2 Laws Applicable to Transfer of Title Generally, a person can acquire title to immovable property through: • an act of the parties, including sale, gift, exchange or lease, governed by TOPA and RERA; • succession governed by personal laws or the Indian Succession Act 1925; or • allotment by government organisations/agencies. Certain states prohibit companies/firms from pur - chasing/leasing agricultural land and prohibit people with income above a certain threshold or who are not already agriculturalists from purchasing agricultural land. Certain states also have land ceiling laws that restrict acquisition of land beyond specified limits.
2. Sale and Purchase 2.1 Categories of Property Rights Freehold
In a freehold, the owner acquires absolute right, title and interest (including undivided interest in flats/ apartments) in property, with unfettered freedom and right to deal with the property. Tenancy (Lease) In a tenancy (lease), the lessee acquires limited inter - est and rights to property, with the right to possess,
320 CHAMBERS.COM
Powered by FlippingBook