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Ministry of Housing & Lands

Building Sites 

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Agricultural Sites

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Socio/Cultural/Religious Sites
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GUIDELINES ON BUILDING SITE LEASE

 

 
A. POLICY
1.  It is the policy of Government to grant building site leases in favour of persons of the low income group. Usually the extent of a building site is about 0A04 (4 square perches) or about 170m². In accordance with Section 6 of the State Land Act, the approval of the Minister is sought before a building site lease is drawn up between the Government as the Lessor and the beneficiary as the Lessee.
B. CRITERIA FOR ELIGIBILITY AND RENTAL
2. The present Policy is for the applicant and/or his spouse satisfying the following conditions:
 (i) not normally be a land owner;
 (ii) not be owner of an ex-CHA housing unit or a NHDC housing unit; and
 (iii) have a family income of not more than Rs 7,500 per month.
 
3. Subject to availability of land, the Applicant who satisfies the above criteria is granted a building site lease for residential purposes for period starting as from date of letter conveying approval to expire on 30 June 2060 at an initial rent depending on monthly family income for period starting as from date of approval with an increase of 50% in the annual rent every ten years or part thereof up to 30 June 2060.
 
4. The same conditions are applicable to sitting lessees who are granted new leases upon expiry.  However, if the lessees are found to be owner of private land or CHA/NHDC units after the signature of the original lease, the new lease expiring on 30/06/2060 with rent based on the family income + additional rent of Rs 1000 for the first 10 years with a 50% increase in annual rent for each and subsequent ten years up to 30.06.2060 is applicable.
 
5. Applicant with monthly income falling within the income bracket as per table hereunder may also be considered for the grant of a building site lease normally under the following approved rent terms.
 
 
Monthly Family Income 
Annual Rent to be claimed for first ten years  
Up to Rs 7,500
Rs 1.00
Rs 7,501- Rs 10,000                   
Rs 1,000   
Rs 10,001 to Rs 15,000​
Rs 2,000   ​
Rs 15,001 to Rs 25,000​
Rs 3,000
Above Rs 25,000​
Rs 6,000 ​
Above Rs 50,000
As assessed by Valuation Department
An additional sum of Rs 1,000 will be claimed from lessees/heirs who have become landowners upon renewal or transfer of the building site lease.​ ​
 
                                 

 

  

C. PROCESSING OF APPLICATION
 
6. Applications for building site leases are normally referred to the NHDC. However, in cases where land is available for such purpose, the applications may be considered.
 
7. On the basis of the information supplied by the applicant the following procedures are adopted :
(i) check whether State Land applied for is available and suitable ;
(ii) effect searches at the Registrar General's Department regarding land ownership status of the Applicant and whether applicant is owner of a CHA/NHDC Unit ;
(iii) searches are also carried out at the Ministry's level as to whether applicant is already a building site Lessee; and
(iv) request for socio-economic report from the Ministry of Social Security, National Solidarity and Senior Citizen Welfare and Reform Institutions.
 
D. SUBMISSION FOR APPROVAL
 
8. When all the required information/data regarding the applicant and the State Land applied for has been collected, an appropriate recommendation is submitted for the consideration of the Minister.
 
E. EXCEPTIONAL CASES
 
9. Applicants falling in hardship case groups are given priority. E.g fire victims or persons subject to eviction by a Court Order. However, the same criteria as enunciated at paragraphs 5 and 7 above apply to them.
 
F. DROIT DE SURELEVATION
 
10. Lessees who wish to grant a 'droit de surélévation' to one of their descendants/ascendants should submit a request to the Ministry with a set of plans of proposed addition to existing building together with the name of proposed beneficiary. On approval of the Minister, a 'droit de surelevation' is granted subject to an increase in rental of Rs 1000/- with an increase in annual rent of 50% every ten years up to its expiry date. This increase in rent of Rs 1,000 is not related to the income of the lessee.
 
11. A 'droit de surélévation' is normally not granted to a person who is a land owner of a residential plot of land or a person who is the owner of an ex-CHA unit or NHDC unit. It is normally restricted at present to one unit/level (Ground + 1 ) only.
 
12. The grant of the 'droit de surélévation' is subject to the following conditions:
 
 (a) The lessee should submit within a period of six months as from date of letter conveying approval, a duly registered notarial deed witnessing the grant of the ‘ droit de surélévation' ; and within a period of one year as from date of letter conveying approval a duly registered notarial deed witnessing the règlement de co-propriété; and subsequently the lease is transferred in the name of the 'Syndicat de Coproprietaires'.
 
 (b) The lessee shall be personally responsible for the payment of the State Land rent to Government.
 
 
G. ADDITIONAL HOUSING UNITS
 
13. Buildings with G+1 which have a staircase outside are considered as having two residential units while those having a staircase inside are considered as a single unit.
 
14. Rent for building site with two residential units is increased by Rs 1000 p.a with an increase of 50% in annual rent every ten years up to its expiry date.
 
15. The construction of an additional  residential unit laterally is subject to an additional rent of Rs 1000 p.a with an increase in annual rent of 50% every ten years up to its expiry date.
 
H. SURVEY FEE
 
16. A survey fee of Rs 1,100/-, under Section 20 of the Land Surveyors Act (GN/19 of 2013) is claimed whenever a survey is being carried out for the drawing up of a lease or upon request of the lessee.
 
I. REGISTRATION DUES
 
Prior to the approved lessee signing the lease agreement, he will be required to pay all the registration fees and stamping fees as provided under Section 15 of the State Lands Act.
 
J. TRANSFER
 
17. Requests for transfer of leases are also considered by this Ministry. These requests are classified in three categories:
 
(i) Application for Transfer made by the Lessee
This application is receivable if it is signed jointly by the lessee and by the transferee.
 
(ii) Application for Transfer made by Heirs of Late Lessee
Contractually the lease comes to an end at the death of the lessee. When the heirs apply for the transfer of the new lease, the application should be supported by all legal documents including an affidavit establishing the names of the heirs. An affidavit witnessing the consent of all heirs for the transfer of the lease  in the name of only one person should be produced.
 
(iii) Application for Transfer made by Unpaid Creditor
Application for transfer should be forwarded by the Attorney in charge of the sale. The application should be accompanied by supporting documents and a copy of the Court Order authorising the sale including the Memorandum of Charges.
 
18. Processing of the applications are dealt in accordance with paragraphs 5 and 7 above, after assessment of eligibility, family income, land ownership status, etc. of the nominee, i.e. the nominee should satisfy all the criteria set for the grant of a building site lease for residential purposes.
 
19. On approval of the transfer with respect to para 17(i) and 17(iii), the Lessee should submit a duly registered notarial deed witnessing the sale of the building  standing on the State Land together with the transfer of the leasehold rights within a period of six months as from the date of the  letter conveying approval.
 
K. LOANS
 
20. Pledging of rights are granted under Article 1778-5 of the Code Civil.
21. Pledging of rights is granted for development for which the lease has been granted and is subject to the following criteria:
 
(i) any Lessee is entitled to pledge his/her leasehold rights subject to 'a droit de regard' from the Lessor with particular to the contractual relationship with the lessee;
 
(ii) the purpose of the loan must be clearly stated and be related to the development of the site leased and/or connected to the full-time professional/business/economic activities of the Lessee;
 
(iii) loans must be taken from known lending institutions and a statement from the latter to that effect must be produced;
 
(iv) there should be no arrears on the lessee's rent account and rent for the current financial year should be fully paid;
 
(v) no infringement or encroachment or unauthorised construction whatsoever has been committed on the site;
 
(vi) the consent of all other creditors, if any, has been obtained;
 
(vii) the lease is in order;
 
(viii) plans to be submitted for approval if the development is to be carried out on the site leased; and
 
22. On the other hand, the pledging of leasehold rights are not  granted for the following cases.
 
(i) the repayment of debts other than those as per paragraph 21(ii) above contracted by the lessee or of any loan contracted by a third party; and
 
(ii) loans taken from private individuals or non-lending institutions. 
 
23. Applications for pledging of rights for educational purposes for the Lessee or his descendants should have the prior approval of the Ministry.
 
L. DEVELOPMENT OF SITE
 
24. The Lessee shall not construct any building/s or structure/s of any kind prior to the site and building plans having been approved by the Lessor. In addition the Lessee should obtain all the necessary permits and clearances from relevant authorities.
 
M. CANCELLATION OF LEASE
 
25. The lease can be cancelled for the following reasons: -
 
(i) if the Lessee has not completed the construction of a residential building within a period of 18 months as from the date of signature of the lease agreement;
 
(ii) if the Lessee, in the eventuality of the existing building having been destroyed, has not completed the construction of the new building within a period of 12 months from the date of destruction of the existing building;
 
(iii) if the lessee fails to start the erection of the building referred to at (i) above within 9 months from the date of signature of the lease and if a forty eight hour notice served upon the lessee, at the instance of the Lessor requesting him to start the construction, has remained uncomplied with;
 
(iv) if the rent has remained unpaid for more than 3 months after its falling due and a forty eight hour notice served upon the lessee requesting him to pay the rent has remained uncomplied with;
 
(v) if the lessee fails to comply with any of his other obligations or conditions of the lease or has made a false declaration in the lease agreement; and
 
(vi) if at any time, Government requires the said plot for any purpose, subject to payment of such compensation for added value to the land as may be determined by the Chief Government Valuer.
 
26. FAILURE TO VACATE LAND AND REMOVE BUILDING/S OR STRUCTURES
 
On the cancellation of the lease for reasons stated at para 25 above, the lessee shall remove the building/s or structure/s standing on the land within a period of not more than three months, failing which the said building/s or structure/s shall become the property of the Lessor. In case the lessee fails to vacate the land, failing which the lessor shall be entitled to apply for a writ habere facias possessionem to resume possession of the land.
 
From 30 March 2012                                                                                         Back to Top
 
GUIDELINES ON INDUSTRIAL LEASES
 
1. POLICY
 
1.1 It is the policy of Government to grant industrial leases over State land to promote industrial development. Industrial leases may be granted in favour of an individual/company or society.
 
1.2 Industrial leases are generally granted for the following:-
 (a) Hotel development and tourism related projects
 (b) Construction of Bungalow Complex
 (c) Construction of offices/commercial complex and
 (d) Construction of industrial buildings which includes :-
(i) a Restaurant​​
(ii) a Discotheque​​
(iii) a Supermarket​​
(iv)​ a Beauty Parlour​
(v)​ a Golf Course​
(vi)​ a Boat House​
(vii)​ a Nautical Centre​
(viii)​ an Helipad​
(ix)​ a Stone Crushing Plant​
(x)​ a Mechanical Workshop​
(xi)​ a Metal Workshop​
(xii)​ a Boat Building Repairs​
(xiii)​ a Cabinet Workshop​
(xiv)​ a Jewel Manufacture​
(xv)​ a Relay Station​
(xvi)​ a Motor Garage / Centre​
(xvii)​ a Repeater Station​
(xviii)​ any other industrial activity​
 
       
1.3 In accordance with section 6 of the State Land Act, the approval of the Minister is sought before an industrial lease is drawn up between the Government as the lessor and the beneficiary as the lessee.
 
2. APPLICATION
 
(i) Hotel Development
Any promoter willing to have a lease over state land for Hotel Development, should submit an application accompanied with a precise location plan to this Ministry, with copy to the Ministry of Tourism and Leisure and Board of Investment.
 
(ii) Bungalow Complex / Commercial Development
Construction of industrial buildings - Construction of offices/commercial complex.
Any Promoter willing to lease state land for the above mentioned development should submit an application accompanied with a precise location plan in the form of a letter to the Ministry.
Priority criteria, to be clearly spelt out in the project proposals, should include, amongst others, th efollowing information:-
 
(a)     Profile & Shareholding structure of promoting company/promoters
(b)     Proven track record of applicant/promoter
(c)     Room capacity: 100+
(d)     Four to five star type of hotel development in line with the tourism strategy
(e)     Project value + FDI: Rs500 million +
(f)      Business plan
(g)     Concept plan
(h)  Social components (over and above mandatory financial  contribution to the Consolidated Fund)
(i)      Eco-friendliness
(j)      Site applied for
 
Potential promoters are reminded that the above-listed criteria are not exhaustive but are only indicative.
 
3. PROCEDURES
 
3.1 Subject to availability of the land applied for, the application is examined by the Ministry of Housing and Lands in consultation with other Ministries/authorities.
 
3.2 A recommendation is made for the consideration of the Minister to either grant or reject the request. Upon Government approval reservation letter is issued to the promoter. The reservation is subject inter alia, to the following conditions:-
 
(a) the reservation is for a period of twelve months;
(b) a cash deposit, to be determined by the Ministry be made within a period of one month as from date of the letter of reservation;
(c) submission of three copies of the preliminary plans within a period of three months as from date of the reservation letter.
 
3.3 Once the conditions mentioned in the reservation letter have been satisfied, a recommendation is then made to the Minister for the grant of an industrial lease to the promoter.
 
3.4 A letter of Intent containing all conditions and rent (payable in advance) is issued to the promoter. Upon acceptance of the offer, the payment of the rent and the survey fee, a lease agreement is drawn up
 
4. PERIOD OF LEASE
 
4.1 Industrial/Commercial leases are granted for a period not exceeding 60 years
 
5. PERIOD OF LEASE
 
5.1 The rent payable shall be in accordance to the Schedule attached to the State Lands Act

6. SURVEY FEE
 
Survey of a commercial or industrial site:-
 
(a)​

of an extent of 4,221m2  (1 Arpent) or less 

5,500​
(b)​ of an extent of 4,221m2 (1 Arpent) 5,500 and a further amount of Rs 3,250 for each additional portion of 4,221m2 (1 Arpent) or part thereof
 
7. CONTRIBUTION TO THE CONSOLIDATED FUND
 
7.1 For Hotel Development/Tourism related projects a contribution to the Consolidated Fund should be made as follows:-
a) for sites with sea frontage, Rs 1.5m per arpent
b) for sites situate on the inland side of the coastal road Rs750,000 per arpent
 
8. REGISTRATION DUES
8.1 Registration and stamping fees as provided under Section 15 of the State Lands Act should be paid prior to the signature of the lease agreement
 
9. CONDITION OF LEASE
 
The main conditions of the lease are:
(i)
two (2) sets of detailed plan should be submitted to this Ministry for final planning clearance. Wherever applicable, the plan should comply with a minimum building setback of 30m from the High Water Mark and with other relevant guidelines for portion one of the Coastal Zone;
(ii) the conditions of the EIA should be complied with;
(iii) the sewerage treatment plant should have a minimum setback of five metres (5m) from the common access road;
(iv) the Lessee shall obtain all necessary permits and clearances from all relevant authorities before starting construction of the buildings or structures on the land leased;
(v) before construction of any building or structure, the lessee shall obtain the prior approval of the lessor on the plan;
(vi) should the lessee fail to complete the development of the land leased according to plans approved by the lessor within the specified period of time, the lessor reserves the right to resume possession of the whole or any part of the land leased without payment of any compensation, on giving the lessee three months' notice to that effect;
(vii) any delay in the obtention of permits and clearances referred to at Para (iv) shall not entitle the  lessee to any extension in the period granted for the start of the construction;
(viii) the Lessee shall dispose of all solid and liquid wastes in such manner as not to pollute the air or  water and not to cause any nuisance to the satisfaction of the appropriate authorities;
(ix) if applicable any beach reprofiling works, clearing of the lagoon, construction of jetty or timber deck on the beach fronting the hotel site should be subject to a new E.I.A;
(x)
the public shall have free and unimpeded access along the beach at all times; and
(xi)
the cash deposit which has been effected by the promoter during the reservation period is refunded to the Lessee once the project becomes operational;
(xii) social obligation clauses well defined with specified dates; (New condition)
(xiii)

social reporting, 1 year from the date lease is signed.(New condition)

  

10. LOANS

10.1 Pledging of rights are granted under Article 1778-5 of the Code Civil.

10.2 Pledging of rights is granted for development for which the lease has been granted and is subject to the following criteria:

 

10.3 On the other hand, the pledging of leasehold rights is not granted for the following cases:
(i)
the repayment of debts other than those as per paragraph 10.2 above contracted by the lessee or of any loan contracted by a third party; and
 
(ii)
loans taken from private individuals or non-lending institutions.
 
11. TRANSFER
 
11.1 Upon application by the sitting lessee and subject to approval, the lease may be transferred in the name of another person or company on same terms and conditions.
 
11.2 On approval of the transfer, the lessee should submit a notarial deed witnessing the sale of the building/s standing on the state land and the rights to the lease within a period of six months as from the date of letter conveying approval of the transfer.
 
12. DEVELOPMENT OF SITE
 
The Lessee shall not construct any building/s or structure/s of any kind prior to the site and building plans having been approved by the Lessor.
 
13. RETRIEVAL OF LAND  
Government reserves the right to resume possession of the land leased or part thereof at any time during the course of the lease for any purpose against payment of such compensation to the land as may be determined by the Director, Valuation and Real Estate Consultancy Services, Valuation Department.  
 
14. CANCELLATION OF LEASE
 
The lease can be cancelled for the following reasons:-
 
 
(i) if the lessee has not completed the construction of the building(s) within the period specified in the lease agreement;
(ii) if the lessee, in the eventuality of the existing building having been destroyed, has not completed the construction of the new building within a period specified from the date of destruction of the existing building;
(iii) if lessee fails to start the erection of the building within the period specified and if a forty eight hour notice served upon the lessee, at the instance of the lessor requesting him to start the construction, has remained uncomplied with;
(iv) if the rent has remained unpaid for more than 3 months; and
(v) if the lessee fails to comply with any of his other obligations or conditions of the lease or has made a false declaration in the lease agreement;
 
15. CHANGE OF PURPOSE OF LEASE
 
15.1  If the lessee wants to change the purpose of the lease, he should submit an application to the Ministry of Housing and Lands. The Lessor reserves the right to grant the request subject to revised terms and conditions including rent.
 
15.2 The lessee may also utilise the land in connection with such other industrial purpose as may be approved in writing by the lessor who reserves the right to revise the rent on giving such authorization.
 
16. FAILURE TO VACATE LAND AND REMOVE BUILDING/S OR STRUCTURE/S
 
On the cancellation/expiry of the lease, the lessee shall remove the building/s or structure/s standing on the land within a period of not more than three months, failing which the said building/s or structure/s shall become the property of the Lessor. If the lessee fails to vacate the land, the lessor shall apply for a writ habere facias possessionem to resume possession of the land.
 
From 30 March 2012                                                                                           Back to Top
 
 
 
1. POLICY
 
It is the policy of the Government to grant agricultural leases to individuals, companies or cooperative societies. The agricultural leases may be for mixed farming, foodcrop/cane planting, flowers and fruit trees. In accordance with Section 6 of the State Land Act, the approval of the Minister is sought before an agricultural lease is drawn up between the Government as the lessor and the beneficiary as the lessee.
 
2. APPLICATION FOR AGRICULTURAL LEASE
 
2.1 Any person, company or society who is willing to undertake agricultural/farming projects may apply for lease of State Land
 
2.2 Societies should be empowered to take up leases.
 
2.3 Application for land may be submitted in form designed for the purpose.
 
3. PROCEDURES
 
3.1 If land applied for is available and found suitable for the purpose, a recommendation for the grant of the lease is submitted for the consideration of the Minister
 
3.2 For mixed farming the views of the Ministry of Agriculture is sought.
 
3.3 If the land applied for is not available, the applicant is informed accordingly.
 
4. CONDITIONS
 
4.1 Agricultural lease is usually granted for the following period as follows:
(i)​
foodcrop cultivation lease is on a year to year basis.
(ii)​
sugar cane plantation is normally for a period of seven years.
(iii)​
flower and fruit trees is normally  for a period of ten years.
(iv)​ mixed farming is normally for a period of twenty years.​
 
4.2 The lessee shall start cultivating the land leased within a period of six months as from the date of signature of the lease.
 
4.3 The lessee may, with the written approval of the lessor, erect such watchman's quarters as required for the proper running of his plantation provided that the watchman's quarters shall be of a temporary nature and that it shall not be constructed in concrete.
 
4.4 The lessee shall not carry any other cultivation activities other than that approved without the prior written approval of the lessor.
 
4.5 The lessee shall not leave the land fallow for a period of more than three months following the harvest of the last crop.
 
4.6 The lessee shall not sublet or assign the whole or any part of his interest under the lease without the express written permission of the lessor.
 
4.7 The lessee shall dispose of all solid and liquid wastes in such a manner as not to pollute the air or water and not to cause any nuisance.
 
4.8 For mixed farming leases the following additional conditions are required:
 
(a) The lessee shall rehabilitate, under the guidance of the Chief Agricultural Officer (CAO) by means of lapping and pruning with approved equipment, all damaged but otherwise healthy fruit trees standing on the land leased.
(b) The lessee shall keep a number of cows to be approved by the CAO as well as other approved livestock on the land.
(c) The lessee shall erect on the land shelters for his cattle and other approved livestock. He is also allowed to erect such other buildings and structures which are essential for the running of the farm. However, no building or structure of any kind is to be erected prior to the sites and plans having been approved by the Ministry.
(d) The lessee shall have the right:     
 
  (i)
To collect and dispose of the annual fruit crop currently available from fruit trees standing on the land.
 
  (ii)
To grow vegetables and other foodcrops approved by the CAO on the land.
 
  (iii)
To avail himself, free of charge, of fodder currently available on the land.
 
  (iv)

To construct at his expense roads and paths within the land leased.

 
5. RENTAL
 
5.1 For foodcrop / cane planting, the rent payable is Rs. 1500 per arpent per annum. For other types of agricultural lease, the rent is at market value as assessed by the Director, valuation and Real Estate Consultancy Services, Valuation Department.
 
6.LOANS
6.1 Pledging of rights to leases are granted under Article 1778-5, of the Code Civil.
 
6.2 The Pledging of rights is granted for development for which the lease has been granted and subject to the following criteria :-
(i)​
any lessee is entitled to pledge his/her leasehold rights subject to a 'droit de regard ' from the lessor with particular to the contractual relationship with the lessee;​
(ii)​
the purpose of the loan must be clearly stated and be related to the development of the site leased;​
(iii)​
loans must be taken from known lending institutions and a statement from the latter to that effect must be produced;​
(iv)​
there should be no arrears on the lessee's rent account and rent for the current financial year should be fully paid;​
(v)​
no infringement or encroachment or unauthorised construction whatsoever has been committed on the site;​
(vi)​
the consent of all other creditors, if any, has been obtained;​
(vii)​
the lease is in order; and​
(viii)​ plans regarding mixed farming to be submitted for approval by the Lessor.​
 
6.3 The pledging of leasehold rights is not granted in the following cases:
 
(i) the repayment of debts other than those as per paragraph 6.2 (ii) above contracted by the lessee or of any loan contracted by a third party;
 
(ii) loans taken from private individuals or non-leading institutions
 
6.4 All applications for pledging of rights not falling under paragraph 6.2 are not considered
 
7. REGISTRATION, TRANSCRIPTION AND STAMP DUTIES AND SURVEY FEE.
 
7.1 The lessee shall pay the cost of registration, transcription and stamp duties as provided under Section 15 of the State Lands Act and also a survey fee of Rs 2500 per arpent for the first arpent or part thereof and Rs 1250 for each additional arpent or part thereof.
 
8. TRANSFER
 
8.1 The approval of the Minister is required for the transfer of a lease or in case there is a change of use of the original lease.
 
8.2 On the death of the lessee, the lease may be transferred to one of the heirs subject to production of the affidavit establishing the names of the heirs and another affidavit witnessing the consent of the other heirs.
 
8.3 The same conditions as at paragraph 4 above are applicable in case of transfer of a lease.
 
9. CANCELLATION
 
9.1 Whenever a site has remained undeveloped for a considerable period, the lease may be cancelled.
 
9.2 Government may resume possession of the whole or any part of the land at any time for any purpose against payment of such compensation for added value to the land as may be determined by the Valuation Department.
 
9.3 The rent has remained unpaid for more than three (3) months after its falling due and a forty eight hour notice served upon the Lessee requesting him to pay the rent has remained uncomplied with.
 
 
From 30 March 2012                                                                                           Back to Top
 
 
1. POLICY
 
1.1 It is the policy of the Government to grant Social/Cultural/Religious leases in favour of association/societies/organisations. Before such a lease is granted the approval of the Minister is sought and a lease is drawn up between the Government as the lessor and the beneficiary as the lessee.
 
2. CRITERIA FOR ELIGIBILITY AND RENTAL
 
2.1 Such leases are not granted to individuals but only to an association, society or organisation whose objectives are for social/cultural/religious activities and which is duly registered at the office of the Registrar of Association.
 
3. PROCEDURES
 
3.1 Applicant can submit an application accompanied with a precise location plan in the form of a letter. The applicant shall submit details of the project as well as evidence that the Society/Association is registered and is empowered to take a lease.
 
3.2 If the land requested is available and suitable for the purpose and all information has been submitted, a recommendation is submitted for the consideration of the Minister.
 
4. CONDITIONS AND RENTAL
 
(a)
The land is to be used solely for the purpose the lease is granted.
(b)
The lessee shall complete the construction of a building to be used as specified in the lease agreement, and it is normally within a period of eighteen (18) months as from the date of signature of the lease.
(c)
The plans of the building should be submitted to the ministry for clearance before starting construction.
(d)
The lessee shall obtain all necessary permits and clearances from all relevant authorities (development permit and building permit) before starting construction of the building on the land leased. Any delay in the obtention of permits and clearances shall not entitle the lessee to any extension of the delay in construction of the building.
(e)
The lessee shall not sublet or assign the whole or any part of the State Land leased without the written permission of the lessor.
(f)
The lessee shall pay the cost of the ' mise en règle' which may also include the cost of survey.
(g)
The lessee shall dispose of all solid and liquid wastes in such a manner as not to pollute the air or water and not to cause any nuisance.
(h)
In case of the winding up of the Association, the lease shall determine
(i)
The lease is normally granted for an initial period of twenty years.
(j)
The rent payable is normally Rs. 150 per annum for the initial period of 10 years and the annual rent is increased by 50% for  the remaining ten years
 
5. LOANS
 
5.1 Pledging of rights to leases are granted under Article 1778-5, of the Code Civil
 
5.2 The Pledging of rights is granted for development for which the lease has been granted and subject to the following criteria:-
 
 
(i)
any lessee is entitled to pledge its leasehold rights subject to a ' droit de regard' from the lessor with particular to the contractual relationship with the lessee;
(ii)
the purpose of the loan must be clearly stated and be related to the development of the site leased;
(iii)
loans must be taken from known lending institutions and a statement from the latter to that effect must be produced;
(iv)
there should be no arrears on the lessee's rent account and rent for the current financial year should be fully paid;
(v)
no infringement or encroachment or unauthorised construction whatsoever has been constructed on the site;
(vi)
the consent of all other creditors, if any, has been obtained;
(vii)
the lease is in order; and
(viii)
plans to be submitted for approval if the development is to be carried out on the site leased;
 
 
5.3 On the other hand, the pledging of leasehold rights are not granted in the following cases:
 
(i)
the repayment of debts other than those as per paragraph 5.2 (ii) above contracted by the lessee or of any loan contracted by a third party;
(ii)​

loans taken from private individuals or non-lending institutions

 
5.4 All applications for pledging of rights not falling under paragraph 5.2 are not considered.
 
6. REGISTRATION, TRANSCRIPTION AND STAMP DUTIES AND SURVEY FEE.
 
The lessee shall pay the cost of registration, transcription and stamp duties as provided by Section 15 of the State Lands Act and also a survey fee of Rs 1000
 
7. TRANSFER  
 
7.1 Such leases are not transferable. However, in case there is a change of name of the society/association/organisation, an amendment to the lease is made to insert the new name.
 
7.2 Application for the transfer made by an unpaid creditor should be forwarded by the Attorney in charge of the sale. The application should be accompanied by supporting documents including the Memorandum of Charges and a copy of the Court Order authorising the sale.
 
7.3 The cost of such amendment should be borne by the Lessee.
 
8. CANCELLATION
 
8.1 Whenever sites have remained undeveloped for a considerable period, the lease may be cancelled.
 
8.2 Government may resume possession of the whole or any part of the land at any time for any purpose against payment of such compensation for added value to the land as may be determined by the Director, Valuation and Real Estate Consultancy Services, Valuation Department.
 
8.3 The rent has remained unpaid for more than three (3) months after its falling due and a forty eight hour notice served upon the Lessee requesting him to pay the rent has remained uncomplied with.
 
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1. HISTORY BEHIND THE GRANT OF CAMPEMENT SITE LEASES 
 
1.1 Campement site leases are granted on Pas Geometriques and State Lands Act on coastal regions.
 
2. POLICY
Section 10 of the Pas Geometriques Act makes provision for the Government to grant campement site leases by private contract or public auction. Most of campement site leases were granted in the sixties to individuals/ associations and societies which could be empowered to take land on lease. Presently no new site is being granted for campement site leases.
 
3. CONDITIONS
 
3.1 The extent of land being the subject of leases for campement site should not exceed 1A25p unless any portion of Pas Geometriques which exceeds the 1A25p is so situated that it cannot be conveniently divided and in the opinion of the Government it is desirable to lease the whole of that portion.
 
3.2 Any person/association/society shall hold only one campement site lease.
 
3.3 Campement site leases are not normally granted to Companies.
 
3.4 Campement site leases were granted for a period of 20 years with option for renewal for two consecutive periods of twenty years with rent either agreed upon at the time of auction sale or as embodied in the lease agreement.  In case of the lessee exercising his option of renewal the rent is either increased by 50% or assessed by the Valuation Department.
 
3.5 However with the amendment of the Pas Geometriques Act, leases are granted for a period not exceeding 60 years, with rent as per the Schedule attached to the Pas Geometriques Act.
 
3.6 Prior to any development carried out on the site, the plans should to be approved by this Ministry. The lessee shall obtain all necessary permits and clearances from all relevant authorities before construction of any building on the land leased.
 
3.7 The lessee shall complete the construction of his buildings within 18 months as from the date of signature of the lease.
 
3.8 The land is to be used solely as a campement site.
 
3.9 At the expiry of the lease or upon its cancellation , the lessee shall yield up the lands hereby leased nowise deteroriated in value as they stand without any claim whatever for indemnity other than permission to remove the buildings to the lessee . Such buildings shall be removed within a period to be fixed by the lessor, and failing their removal within such period, the buildings shall become the property of the lessor.
 
4. TRANSFER OF CAMPEMENT SITE LEASES
 
According to Article 5 of the Lease Agreement the leasehold rights are transferable subject to:-
a) the transferee not being already the lessee of a campement site;
 
b) the transferor notifying in writing the Lessor of the transfer and submitting a copy of the notarial deed witnessing the transfer of the leasehold rights and sale of any existing building within 21 days of the date of registration of the deed;
 
c) the drawing up of a lease agreement between the Lessor and the transferee; and
 
d) the payment of the appropriate duties and taxes at the time of registration of the relevant deeds.
 
4.1 Request for transfer from campement site lessees who have decided to remain governed by the existing terms and conditions of the original lease are still being considered by the Ministry.
 
4.1.1 Application for transfer made by the lessee.
 
This application is receivable if it is jointly signed by the lessee and the proposed transferee. Transfer of such campement site lease is normally being effected on same terms and conditions including the rental. On approval by the Ministry for the said transfer, the sitting lessee shall produce a Notarial Deed witnessing the sale of the buildings and the transfer of the leasehold rights in the lease in favour of the new lessee following which a formal lease agreement will be drawn and signed between Government and the new lessee.
 
 
4.1.2 Application for transfer made by Heirs of Late lessee .
Whenever a campement site lessee has passed away, the lease may be transferred in the name of one of the heirs of the late lessee or in the name of the Succession and Heirs of the late lessee on same terms and conditions. The application for the transfer of the lease should be supported by all legal documents (i.e. affidavit, power of attorney etc).
 
4.2 Request for transfer from campement site lessees who have entered in a new 60 year lease may have recourse to the provision of Article 5 of the Lease Agreement for the transfer of the lease.
 
4.3 Application for transfer made by unpaid creditors
Application for transfer should be forwarded by the attorney in charge of the sale. The application should be accompanied by supporting documents including the Memorandum of Charges
 

5. SUBDIVISION OF CAMPEMENT SITE

5.1 Request for subdivision of campement site is also considered by this Ministry provided that the extent of the parceled plots is as per prevailing planning guidelines and also provided that all the parceled plots are built up.

5.2 An individual lease with new terms and conditions including new rental will then be drawn up in favour of the beneficiaries of the parceled plots. This exercise will also be subject to the production of a Notarial Deed witnessing the sale of the building together with the transfer of the leasehold rights in favour of each of the new lessee following which a formal lease agreement will be drawn and signed between Government and each of the new lessee(s).

6. LOANS

Pledging of rights are granted under Article 1778-5, of the Code Civil.
 
The Minister has however approved that permission to pledge right be granted subject to the following criteria:
(i)
Any lessee is entitled to pledge his/her leasehold rights subject to a ' droit de regard' from the lessor with particular to the contractual relationship with the lessee;
(ii)
The purpose of the loan must be clearly stated and be related to the development of the site leased;
(iii)
Loans must be taken from approved lending institutions and a statement from the latter to that effect must be produced;
(iv)
There should be no arrears on the lessee's rent account and rent for the current financial year should be fully paid;
(v)
No infringement or encroachment or unauthorized construction whatsoever has been committed on the site;
(vi)
The consent of all other creditors, if any, has been obtained;
(vii) The lease is in order;
(viii)
Plans to be submitted for approval if the development is to be carried out on the site leased; and
(ix)
There should be no increase of the current rental.

 

On the other hand, the pledging of leasehold rights are not to be granted for the following cases:
 
(i)
the repayment of debts other than those as per paragraph (ii) above contracted by the lessee or of any loan contracted by a third party;
 
(ii)
loans taken from private individuals or non-lending institutions.
 
 
All applications for pledging of rights for educational purposes should have the prior approval of the Minister.
 
7.RESUMPTION OF LAND
 
7.1 Government shall not resume possession of the whole or any part of the land at any time before the expiry of this lease unless such resumption is made under the same conditions as for a compulsory acquisition of a private property and on payment of compensation as, under the Land Acquisition Act.
 
8. CANCELLATION AND EXPIRY OF LEASE
 
8.1 Upon cancellation or expiry of the lease, the lessee shall yield up the land hereby leased nowise deteriorated in value as it stands at the date of the lease and the lessor shall resume possession of the land.
The lessee shall be entitled to remove, within a period to be fixed by the Lessor, such building or structure as the Lessee may have been authorized to erect.  Failing its removal within such period, the said building or structure shall become the property of Government.
 
8.2 Failure to vacate the land
Should the Lessee at the expiry or upon the cancellation of the lease or upon resumption of the land, fail to vacate the land, the Lessor shall be entitled to apply for a writ habere facias possessionem to resume possession of the land.
 

 

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