Summary:
The article provides detailed information regarding the concept of Lal Lakir and Lal dora land or property. It focuses mainly on the risks and opportunities associated with owing or acquiring a Lal dora or Lal lakir land or property.
Table of Contents
Introduction
Under the British ruling in the year 1908, for simplification and maintenance of the revenue records, a red line was drawn on the maps of India to separate the population of the village from the nearby agricultural land. The aforesaid properties were named as Red Tape Property or Lal Dora or Lal Lakir land. This name classification was also provided to the parts of the village lands, including the village habitation, which was referred as Abadi in the said context. Most of Lal Dora or Lal Lakir land is located in the states of Punjab.
What is Lal Dora/ lal lakir land?
The said land is supposed to be used for the farming purpose only. It is that part of the village land that has an extension of the village habitation where villagers used to keep their livestock and support system etc. It is the duty of the revenue department to mark the Lal Dora Land to make a distinction from the agricultural land.
What is “Lal Dora” certificate?
It is the certificate that establishes the fact that a specific land or property in the “Abadi” area of the village is legally owned by an individual. Lal Dora or Lal Lakir certificate is considered as one of the crucial documents with regard to get power, and water connection in villages.
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What kinds of properties are covered under Lal Dora?
As mentioned earlier, Lal Dora land or Lal Lakir lands are classified and assigned to the part of the village lands that has an extension of the village habitation, which is also referred as “Abadi”.
Tax liabilities lies upon Lal Dora properties
As per the Property Tax Law of India, the owners of the Lal Dora properties are exempted from paying house tax or property tax.
Advantages of buying land/property in Lal Dora Areas
The following are some of the advantages of buying properties in Lal Dora Areas;
It comes with a low price
The prices of Lal Dora or Lal Lakir properties areas are lower as compared to the areas which fall under the municipal corporation. The major reason for such a low price is due to the absence of proper documentation of ownership and lack of basic facilities.
It provides relaxations of regulations
There are more than 10,000 villages across India and most of which comes under Lal Dora properties. However, it does not mean that Lal Dora properties are not found in cities. In the state of Delhi, more than 300 villages are there having Lal dora lands. As mentioned, the said villages do not fall under the Municipal Act, and thus it gets an exemption on the compulsory requirement of sanction of the building. However, permission is required from the municipal authority, and the owner of the dora land needs to obtain a No objection Certificate from the Land and Revenue Department of the relevant jurisdiction.
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It gives tax benefits such as exemptions on house tax
The Property Tax Authorities do not charge property tax from the properties located in the Lal Dora areas as these properties are not registered with the relevant authority.
It can be regularized
The properties located in Lal Dora or Lal Lakir areas can be regularized, which has jurisdiction over the regime by a sub-divisional magistrate. The applicant is required to submit an affidavit or self-declaration along with the details of the property as well as its owner. It is to be noted that Lal Dora or Lal Lakir lands are registered in the Tehsil office.
Disadvantages of buying land/property in Lal Dora Areas
While there are some advantages of buying the Lal Dora or Lal Lakir land, there are also some disadvantages of buying them as well. The following are some of the disadvantages of buying properties in Lal Dora areas;
The risk of fraud for duplicity of ownership
In the case of Lal Dora or Lal Lakir lands, the ownership of land is generally from back dates to decades or centuries. In simple words, the land records are very irregular with the authorities that it may not be as reliable as it should be. Thus, there may be chances of fraud and duplicacy of ownership of lands.
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Inability to get bank loans over Land Dora properties
Generally, the lands in these areas come with collective ownership, and there may not be clarity regarding the individual plot ownership. Banks are generally reluctant to sanction loans on such properties due to no clarity in the documentation of ownership with most of the occupants in the area.
There will be a lot of regional maintenance issues
The Lal Dora areas do not come under the direct control of the relevant authority, thus it is obvious that these areas will be neglected. Basically, the municipal corporations are supposed to work to make sure that all basic amenities are available in the said areas. However, these areas are neglected ones due to no regulation and red-tapism.
There will be difficulties to sell Lal Dora properties
Due to the absence or lack of basic civil amenities and risks involved with these areas, the said properties are likely difficult to sale. Apart from that, the properties may not be built as per the safety protocols prescribed by the government.
Come with a risk of eviction:
As the Lal Dora properties are unregulated and unauthorized, there is a risk for eviction or may led to the demolition of the property in the near future. Apart from that, unplanned development of the property can lead to violation of various security regulations and norms.
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Opportunities associated with Lal Dora Land
There are many villages across the country where the property is streaming due to the ease that comes with lands having no regulations of municipal corporations or property tax. Apart from the risks, there are also multiple opportunities associated with purchase or investment in Land Dora or Lal Lakir lands. Some of the opportunities associated with the Lal Dora Land are provided below;
Nominal Rates of Property
As compared to municipal corporation regulated area, the properties located in Lal Dora or Lal Lakir land comes with nominal rates, which makes it possible to purchase affordable properties in prime locations.
The costs are minimized due to the lack of civic amenities. The transactions for these properties are generally made in cash. However, after the demonetization in the year, 2016 such practice has been curbed slightly.
Not Necessary to Comply the Stringent Norms
Due to the exemption from regulations under the Municipal Act, the need to obtain the sanctioned plan of the house for construction is not important or not required.
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Strategic Location
These properties are located in such areas that are popular over the years. The Lal Dora property land status also adds charm to the location. Most of the areas of Lal Dora are nearby business destinations, whether it may be in villages or towns in India. Lal Dora properties are mostly seen in the states of Punjab in India.
Exemption from property tax
As per the Property Tax Law of India, the owners of the Lal Dora properties are exempted from paying house tax or property tax.
Law governing the Lal Dora
Lal Dora land is exempted from construction regulation laws and building bye-laws. It is governed and administered by the Municipal Act.
Conclusion
Usually, the Lal Dora land is used for keeping farm produce and livestock. After Independence in the year 1947, the Government of India has extended the privileges related to Lal Dora lands. However, Lal Dora lands are supposed to be used for agricultural purposes only, but the residents after the independence have extended the Abadi villages, which will be exempted from house tax and building bye-laws. With the expansion in the population of the villages, the new peripheral term was used, such as ‘Phirni’.
It is to be noted that Lal Dora land is exempt from construction norms and building bye-laws as per the provisions of the Municipal Act of the relevant Jurisdiction.
FAQs
Generally, it is misunderstood that Lal Dora property cannot be regularized. However, it is a wrong assumption. It can be done by visiting the office of the Sub-Divisional Magistrate located in the relevant jurisdiction on the area. An application in the prescribed format must be submitted along with the affidavit containing the details of the property and its owners.
Generally, most of Non-Banking Financial Institutions and Banks do not provide home loan or loan against property for Lal Dora properties or land. However, there are a few of them, who can provide loan on the said properties.
The following are some of the necessary documents required to get the “Lal Dora” certificate;
• Application form duly signed by the applicant
• Application form containing the details of Owner of the Property, Details of the property, Khasra No.
• An Affidavit mentioning the details of the property, Name of the Owner of the property/land, Khasra No of the land/property, the purpose of obtaining the Lal Dora Certificate
• Aksh Sizra of the land
• A copy of the Ration Card
• A Copy of Khatoni
In case someone wants to purchase property in the Lal Dora area, he or she has to obtain a No Objection Certificate (NOC) from the office of the district Magistrate of the relevant jurisdiction. Apart from that, one must make sure all the payments of the property tax have already been cleared with the municipal corporation. Also, it is important to check the integrity of the property prior to purchase. Further, also ensure to keep a signed copy of the receipt of payment.
The Lal Dora certificate is a piece of evidence that a particular individual is the owner of the specified Lal Dora land or property that comes under the Abadi area of a village. Apart from that, the Lal Dora certificate can be obtained from the sub-divisional magistrate of the relevant jurisdiction.
With the rise in the prices of lands in the authorized areas and low prices in the Lal Dora areas, there are several redevelopment projects that may come up in future, and the number of such projects is increasing day by day. Thus, there is a possibility of a rise in the capital values of Lal Dora properties.
The “Lal Dora” certificate can be obtained from the office of the Sub-Divisional Magistrate in the relevant jurisdiction where the Lal Dora or Lal Lakir property is located.