12.5% gaothan scheme of CIDCO

CBD Belapur flyover, CGO, RBI and CIDCO office...In most cases,the flats purchased in Navi Mumbai, are built by builders on something called 12.5% Gaothan expansion scheme and (also called ‘sade barah takka’ 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.
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 acqusition was 12.5%,which means that if the villager owned 100 sq meters of farmland,he was allotted 12 meters of land,on which he was free to do construction activity or sell it for a profit.

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
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.

Final Order
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.

This lease deed is 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.

Imp: Occupancy certificate is issued by NMMC and proves that the building is legal and adheres to the sanctioned plans.Drainage and other water connections are given only after this final certificate.Please be aware that after the recent scams in land dealings in Maharashtra and Mumbai,the municipal authorities have become very strict and do not issue Occupancy certificates like they used to.Earlier the builder could pay a fine and regularise the illegal work but now its not uncommon to find buildings even on the high profile Palm beach road lying vacant for 8 months or more due to this factor.One such building is Balaji Heights located in sector 50,Seawoods (you can see it from Palm beach road).The name of the firm is Reliable builders.

If you have any other queries,please call us on 9833802522 for an appointment at our office.(Navi Mumbai).
We cannot anwer your queries on the phone as this subject is too vast and takes up too much time.We do not want to give you wrong advice and hence would request you to fix an appointment.
A visit to our office will cost you money and will be made known to you at the time of appointment.
We are a real estate consultancy based in Nerul,Navi Mumbai,and run this website at our own expense.

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276 thoughts on “12.5% gaothan scheme of CIDCO”

  1. Sir
    I am planning to rent a flat in kharghar but the owner is asking 5000 Rs for rental registered agreement . He said it is necessary to get agreement registered at panvel for kharghar houses is that true ? What is the exact procedure

    1. Yes,the agreement has to be registered at Panvel but he is asking you to foot the entire bill.Ideally,he should share the cost of the registration expenses.Your share should be half of the cost i.e.2500.

  2. Hi,

    I am Nilesh Nimse. I have almost finalized a flat in ULWE Near BAmandongri station. Can you please let me know is it correct to invest in this region (all flats here are 12.5 % gaothan scheme) and also would like to know if these are legal construction and future prospects of ULWE

    1. Ulwe is good for investment.As far as the legality of the project goes,it depends on the legal papers of the project.It will not be possible for me to comment on legality without a perusal of the papers.

  3. Hello Sir,

    I am looking for 1 bhk flat in Navi Mumbai, A builder is developing a plot in Belapur and is saying that it is a ‘Sanad Plot’. He is also trying to convince me by saying that once the building is completed it will be regularized by CIDCO & NMMC.

    Now, I have few queries, related to this as below

    1) What is a ‘Sanad Plot’ ? Is there any legal aspect to it ?

    2) Will the proposed building be regularized by CIDCO and NMMC on completion.

    3) If legal, What precautions one must be taken while buying the flat.

    1. Any building without CC and OC is illegal.Sanad can also be called ‘Gharpatti’.If its gharpatti,then its illegal.Builder can be issue a demolition notice at any time.Even after occupying the building.Whether it is regularlised or not depends on the exact scenario of the plot.You wont get a loan for it.Even if the building is legalized,you will never be able to sell it to someone who needs to take a loan.

  4. What is the difference between CIDCO Tender Plot and CIDCO transfer plot?What may be the issues if one goes for CIDCO transfer plot, because I believe CIDCO Tender plot is a non issue.

    1. CIDCO transfer is nothing but 12.5% gaothan scheme.For details,search for it on this site.There should be no issues if all the documents are checked and verified before paying.

  5. Hi Mayur,
    thanks for wonderful infomative site.

    I am looking for buying 1 BHK in Kopar khairna. I do not have loan.
    the property which i saw is in sector 12, on goathan extension plot. society is formed. the owner had purchased the flat 8 years back ( while under construction) on loan from ICICI bank.
    Title certificate and lease deed is still in name of gaonwala. Society pays property tax to goanwala which in turn might be paying to CIDCO.

    1. is possible to get a legal deal on this property ( I mean with stamp duty and registration )
    2. Does goanwala needs to be informed\ or kept in sale deed about the purchase ?
    3. Is it possible to apply for CIDCO – NOC individually or as a Society ? this is to make sure other parties buying in future gets loans on this property.

    Thanks ,

    1. You can buy the flat without CIDCO NOC if you dont take a loan.
      You should discuss issues with Gaonwala atleast once.
      You can apply individually,but you will need Society NOC and the land and building will have to be conveyed to the society.Without Society Conveyance,CIDCO NOC is not possible.

  6. Dear sir

    I am planning to buy a flat 1 bhk in sector 6 in khopar kairane I check the document with legal consultant he said this property not under 7/12 but the document are correct still I can buy this property any problem in future please advice me I will be very thank full

  7. Dear Mayur,

    Thanks a lot for such a great information through out your sight stating your expertise in this field.

    I have identified resale 1BHK flat in Sector-19 Koparkhairane.

    Building is 12 years old & it is on 12.5% GES plot.

    Below documents are available.

    1. CC and OC in favor of Gaonwala
    2. Lease deed between CIDCO & Gaonwala
    3. Registered development agreement between builder & Gaonwala
    4. Blue print of the plan
    5. Registered Sale agreement between flat owner and builder.
    5. NMMC Proprty tax receipts. In this receipt coexist are the name of flat owner and Gaonwala as Lease.
    6. Electricity bill in the name of flat owner

    No tripartite agreement(flat owner saying that there were no such tripartite agreement rules long back in 2001-02 when he purchased flat from builder)

    Society also not formed (However society formation is in progress & building members have collected checks in last month)

    Please suggest shall I proceed for purcahsing this property.



    1. If you are taking a loan,the bank will ask whether the society is formed or not.Then they will ask for CIDCO NOC and Mortgage NOC.When you go to CIDCO for NOC,they will ask for conveyance in favour of Society.Since society is not formed,CIDCO will deny you NOC and Mortgage NOC.You should start with the bank and ask them what documents they will need.Once you are sure that bank does not need CIDCO NOC,you can go ahead and purchase it provided you check and verify whether the Society application process has actually started or not.
      Best of luck.

    1. All projects that have started recently need all documents like CC,Approved plans by CIDCO/Collector.NAINA approval ( Navi Mumbai Airport Influence Notified Area ) is required for villages within 25 Km of the Navi Mumbai Airport.

  8. i have purchased a flat in Taloja Panchanand with Axis bank home loan. I want to know that it is mandatory to inform to sub registrar office after loan disbursement or not?

  9. Hello Mayur sir,

    My self Eknath and i want to buy 1 bhk flat in koparkhairane sec 6.. this flat is in gaonthan area, this area is in collony, distance between gaon and collony is near about 1.5 to 2 km ,and banks are not given a loan b coz of gaonthan area. Please advice should i buy this property or not?

    Also 2 yrs back this property was broken down due to some money reasons. now at this stage all work are completed and some flats were sold out.

    Please let me know what questions should i asked to broker at the time of buying this proprty.

    Please answers my above 3 questions at earliest convenince.


    1. If the property has a Commencement certificate and an Occupancy Certificate,you can buy it.If LIC or SBI is giving loan,you can buy it.

  10. Hi,

    I am planning to buy house in Spring – II roadpali, amended CC is receieved last week. but OC is not received yet. Can i go ahead to buy flat in this building.

    1. Without checking the complete list of documents,it won’t be possible for me to comment.Kindly fix an appointment with my office incase you wish to avail of our due diligence services.Call 9833802522

  11. Hi what would be an approximate cost of 1 guntha plot which will be offerd by CIDCO for 12.5% JNPT PAP …AS We are one of them …Please advice approx and lemme know if u have any idea to where the plot will be…Approx info is wat I m looking for basically

  12. Hi Mayur,

    I am thinking of buying a 2BHK flat in Navi Mumbai with budget of around 55-60L. Came across an under construction project called – GIRIJA PRESIDENCY in Rabale (behind Kamla Arcade, Rabale East). Do you have any idea about this project? This is at veryinitial stages – are there any issues that i should be aware of.

    Please advise.


    1. Not aware of anything about that project specifically.You should ask for all the documents required for legal construction.For a list of all the documents,check elsewhere on my website.

  13. Hii
    Myself pravin and I am going to buy a 1 BHK flat in balaji arcade phase 1 extension proposed by tirupati balaji builders and developers pvt ltd they given a plan that 20 percent booking amount and rest by the loan. My question is that the construction going on in a vichumbe villege panvel is the land in the cidco approved area they told me registration will be done after 10 months. Should I go to buy the property. Please suggest as early as possible because I am too much confused
    Pravin thorat

    1. What is the status of land ? Is there any structure on it?Do they have the permissions from Gram Panchayat and Town Planning dept ? Do they have saat baarah in their name ? All these will have to be in place if you have to buy.

      1. the structure on it is on the name of tirupati balaji builders i also seen on the google earth and it shows same. and where i find all the information like saat baarah and gram panchayat permission.

  14. Hello Sir
    I’m planning to buy 1 bhk flat in resale in kamothe. I have met 3 brokers and have seen 8-10 properties. These are 1 yr to 4 yrs old properties. Every broker I met, said the same thing i.e. oc is clear, this is tripartite priory, society is formed but conveyance is in progress. I’m trying to get loan. Generally how much time does it take to get conveyance once society is formed? Will banks give me loan without conveyance? Is it OK to bye flat in building without conveyance?

      1. Hello Sir,
        I have checked a property in Navi Mumbai – Koparkhirane sec 19.
        I am purchasing the flat directly from the owner & the building belongs to theowner & his brothers.
        He said that he has the OC, CC but the society is not formed.
        Is it ok to purchase such flat.Any nationalized bank doesn’t give loan on sec19 properties.

      2. You will have to check the entire chain of documents.OC is important.Society formation is also important if you want a loan.Non formation of society is not a problem now,but can be in the future if you want to manage your society well.Ask him whether he has a copy of the lease deed which comes after OC.Society can be formed later by members also if builder is not making it.Conveyance comes after society formation and costs a few lakhs.That is the reason why builders usually run away from forming a society and giving conveyance.

  15. Hi sir,
    I am willing to purchase flat in kopar khairane in 12.5 ges ,society is not formed however they have applied for its formation .My question is will sbi give loan for such propety..also are rates low in 12.5 scheme …Dear sir please reply

  16. Thanks a lot for the answer ….As they have applied for society formation , owner has paid necessary charges to builder..how and where to check the status of society formation ….

    1. If they have applied for society formation ask them for letter received from the registrar acknowledging the same and approving the opening of the bank account in a co operative bank.Ask them for a statement of account from the co operative bank stating the same.

  17. Hello!
    I am planing to make a deal with gaowala who has award copy of 12.5% plot and want to sale his belonging plot. What would be the procedure? And also if you can advice more about the procedure. Thanks!

    1. Proceed with caution.There have been numerous cases wherein the same plot has been sold to various builders/investors by the gaonwala…which will lead to court cases and bitter experience.Signing MOU’s with Gaonwala is useless as MOU has no legal standing in the court of law.Its extremely risky unless you know the gaonwala personally or he pledges some asset to you in case of default by him.
      Please visit our newly set up Navi Mumbai Real estate forums here and post all your queries/documents/photos and videos for expert analysis by me.


  18. If conveyance in favour of society is not done then will cidco give noc.Then all nationalised bank will only finance flats will conveyance complete.There will be very few societies with conveyance complete in navimumbai.

  19. I am intending to buy a 1 BHK flat in Vichumbe New Panvel. The Project has been approved and funded by LIC Housing Finance Ltd. & ICICI Bank Ltd. The Builder promised to show all the documents but after the Booking. They have not shared the APF No. on my request and instead asked to Book the flat first. They showed me a Plan of the Project which shows the the N.A details of the Project and also they claim that they have a NOC from NAINA and the Airport NOC as well. I am too much concerned about the Legality of the Construction Project. Could you please help with your comments on this?

  20. Hello Mayur Sir,

    Wish you very Happy New Year 2015 !!!

    I want to ask you that, i was purchased a flat in CIDCO area last year with bank loan. That time for disburse loan from bank, they asked to get NOC from CIDCO for mortgage and permission from CIDCO for resale of flat. Now dont have these NOC, but last week bank call for submit the same. Please inform me in this case how can i need to deal. Can you help me in it.

    Please reply soon on my email sayyadsameer@gmail.com


    Sameer Sayyad

    1. You will have to ask the society if they have the Conveyance deed in their favour.If not,CIDCO wont give you NOC.Try IDBI bank,they may oblige.

  21. Hello sir,
    i have selected 1 property in nerul. which is 90% completed, just just 5 min walking from station, i like it very much. But the worry is that, building is come under gaothan. now the thing is more than 50% building in navi mumbai are come under gaothan which is positive , but if tomorrow something is happened i will be in big loss. so i am worried should i go for that propert or not. It means is there any chances of issues or problem will rise in future?

  22. I have bought a gaothan flat (with a valid tripartite agreement) by taking loan from SBI. However, the builder has not yet given me the OC. What can we do??

  23. Hi Mayur,
    Thanks for this wonderful site. I was visiting Kalher-Kasheli and there are multiple under-construction projects on gaothan land which are financed by HDFC GRUH Finance, TATA Finance. The builder showed me that he has documents and is ready to get the finance done for me. He claimed that the documents will be registered in my name and the title is clear. Price looks attractive but was looking to know the risk I am facing.


    Mr Fernandes

  24. SIR,


    1. You cannot buy any property of 12.5% without NOC from CIDCO.You will only get it if you pay the lease premium to cidco and sign a tripartite agreement with CIDCO and gaonwala.

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