Tips for buying gram panchayat land

[ecis2016.org] While pricing is an advantage, buyers must exercise extreme caution with documentation and conversion, in case of gram panchayat-owned land

All the benefits offered by community living notwithstanding, many buyers still fancy the idea of having a luxurious independent home on a parcel of land that they could call their own. As this is nearly impossible in cities, most buyers turn to the outskirts of the cities, to fulfil their desire to build large and spacious homes.

You are reading: Tips for buying gram panchayat land

Gram panchayat-owned land, thus, becomes an obvious choice for such buyers. Not only does this land offer buyers with an opportunity to have what they desire but it is also affordable. Nevertheless, buyers must still scrutinise such options carefully, before making an investment.

Gram panchayat land definition

As urban areas in the city fall under the ambit of municipal bodies, rural areas are governed by the gram sabhas or the gram panchayats. Although these bodies have been in existence before independence, they were provided with constitutional validity during the 1990s. Most of the development work in these areas took place after this.

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However, since land in rural India is primarily agricultural land, using it for housing projects is not legal, unless due process is followed, to change the land use. Depending on the city where the land is located, the collector or the district magistrate, is authorised to allow this conversion. In Delhi, on the other hand, all gram sabha land belongs to the planning body, the Delhi Development Authority (DDA).

It is only after submitting all ownership-related documents and payment of the requisite conversion charges that the land would become legally open for residential use.

Earlier, gram sabhas or gram panchayats only had the power to lease the land within their jurisdiction for agricultural and associated activities. However, various courts in India have, through several judgments, established that gram panchayat land can be sold for construction purposes.

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Benefits of investing in gram sabha / gram panchayat land

Gram panchayat lands are relatively cheaper to purchase. Moreover, the owner can enjoy being closer to nature, in greener and quieter areas than anything that falls within the city limits. The cost of living would also be lower in gram sabha areas, as you are likely to spend less on groceries, travel and entertainment.

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Even when you decide to sell the house, the chances of earning a profit are much higher, as the capital appreciation is much higher in such properties, unlike the saturated markets in the city.

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Disadvantages of investment in gram sabha / gram panchayat land

Owing to the monetary benefits involved, developers often launch plot-based housing projects in areas falling within gram sabha / gram panchayat limits. Such projects provide buyers with an opportunity to own a piece of land at affordable prices. However, the prospect is also fraught with certain risks. The infrastructure in areas falling in the gram sabha/gram panchayat limits, is generally in the developing stage. Thus the availability of utilities might not be the same, as that in areas falling within the municipal limits.

One would hardly see electricity supply getting impacted within the municipal limits. The same cannot be vouched for in rural areas. In many cases, these areas may not have piped water supply and the land owner may have to make his own arrangements for the same. The same goes for the sewerage system. Connectivity could also be an issue, if the area’s road network is not well developed. This could be especially problematic during the monsoons and result in flood-like conditions.

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