Why And How to Invest in Gaothan Property?

Gaothan property is a term that is generally heard in Thane and Navi Mumbai. Dive in to learn about the prerequisites of purchasing such properties.

Gaothan properties are a real estate attraction in Maharashtra. Their reasonable costs fit into the limited budget for low to middle-income groups. These properties are but a risky investment, as per most people. Gaothan properties fall victim to several rumours and misunderstandings.

The most common concern is about the legality of a Gaothan property. Real estate specialists consider this a significant misconception. A few government schemes and policies decide on the legality of Gaothan properties. People should understand the same for making reasonable and intelligent investments.

What Is Gaothan Property?

The term Gaothan means ‘place in the village.’ Thus the villagers own these properties in some prominent cities of Maharashtra. Section 122 under Maharashtra Land Record states Gaothan properties.

The survey of the District Collector declares the sites within the town, city, and village boundaries. The borders are set while keeping in mind the rights of landholders.

These properties are affordable choices for the low-income residents of Navi Mumbai and Thane. Such a population likes investing in a Gaothan property over the high-cost urban regions to enjoy city life. The increasing real estate market in Mumbai confines low-budget investors to the Gaothan regions.

People here are happy with the urban setting of these areas while being near their workplaces. But, everything could be better with Gaothan properties. Some issues, such as title disputes with a Gaothan property, are ordinary due to the need for proper documentation. This is the primary reason that keeps investors from dealing with these properties.

History Of Gaothan Properties

Navi Mumbai Flats are built on the ‘Sade Barah Takka plot. The construction operates under the 12.5% Gaothan Expansion project. It all began with CIDCO giving this land to villagers on agriculture exchanges, and CIDCO took over the ground after a particular period. The 7/12 document and additional land revenue paperwork decide the beneficiaries of this arrangement. Both documents are present with the Patwari, Collector, Tehsildar, Talathi, etc.

State policies and programs decide the status of a Gaothan property. Transmitting properties under the 12.5% Gaothan Scheme (GES) of CIDCO needs paying a transfer fee to some third party. In such cases, the transferee obtains a legal, marketable, and clear title from the administration and can then sell the property to potential buyers.

Is It Legal To Invest In A Gaothan Property?

Proper paperwork is essential to make a property legal. Investing in a Gaothan property is secure if all documentation is there. CIDCO assists the Maharashtra State Government in legalizing such properties. The 12.5 per cent GES (Gaothan Expansion Scheme) is the best action.

The scheme authorizes legally transferring a Gaothan property to a third party, and the party has to reimburse transfer charges for the procedure. This third party can transfer and sell Gaothan properties with legal administration under a marketable title. The most familiar transferees of Gaothan properties are cooperative societies.

Buying a Gaothan property from legal transferees assures a safe and secure investment. The property doesn’t attract dispute since the customer has clear titles. Development authorities ratify property transfers for transferees, and cooperative societies are exceptions to this rule. This approval is done after the payment of the transfer fee. Occupancy certificates, complete construction, and lease deed are also essential for transfer approval.

It is safe to purchase a Gaothan property in the channelized auction of State Government agents. While investing in leasehold properties is unsafe, villagers can take custody of the property after the lease agreement expires. The title deed from authorities avoids disputes on this property, and problems arise if the occupancy document is not there.

Ways to Check The Legality Of Gaothan Property?

The legality of these properties can be reviewed with the help of hiring a property lawyer. Hiring a lawyer is compulsory to cross-check documents and find the property’s history. Property is an expensive affair, so in the future, for these properties without any kind of search is not advisable.

Keep in mind that buying property is a one-time investment. Spending your money on experts can keep you risk-free and allow you to be safe and make wise decisions.

Do Banks Offer Home Loans on Gaothan Property?

In several cases, the banks don’t offer home loans on these properties. Even if you try and get one from any regional banks in the city, it doesn’t guarantee the legality of the property. Banks must give you a confirmation that disputes will not arise at all in the future about this property.

Why are the Property Rates of Gaothan Properties Less?

Compared to the different properties in the city regions, the Gaothan properties come at relatively low rates. There are several reasons why the property and land rates in Gaothan are lower than in other city areas.

  • The unavailability of adequate public utilities. For example, electricity will not be available 24×7
  • Some properties are not legal or have some document-related issues.
  • The roads will not be structured and maintained adequately.
  • Bank loans might not be accessible from reputed banks.
  • The property costs might remain stagnant over time, and you might not receive the desired ROI on your investment.
  • The rental earnings are less because of the unavailability of public utilities.

What are the Essentials for Gaothan Property Registration?

Proper documentation is the primary need for the registration of Gaothan property. The essential paperwork for the process includes the following documents:

  • The Award Copy entitles 12.5% of the property to the allottee. It contains the allotted name’s name and the property’s specifications.
  • A villager’s name in the Letter of Allotment claims plot registration. The document confirms the allotment of Gaothan properties to the villagers.
  • The development authority then issues the LoI (Letter of Intent) to allottees who obtain the award copy. It has the details of the Gaothan property.
  • The lease contract lists the lease terms between the owner and the development authority. It also has a time limit for construction, fines, penalties, etc.
  • The receipt of transfer costs is proof of payment to the development authority by the allottee.
  • The final order states the Gaothan property title to the allottee. This takes place after setting the lease situations and signing the lease contract.

The Tripartite agreement occurs among the property owner, development authority, and a third party. This agreement acknowledges the new owner of the documents of the State Government and has essential information on the property’s specifications and transfer rights.

Buyers should know that all Gaothan properties are not prone to issues. Yet, they require to keep the paperwork in place. Assuring the presence of a development authority is also essential. Therefore, conducting a background check before investing in these properties is better.

Role of Gaothan Expansion Scheme for a Gaothan Property

Maharashtra is noticing a continuous increase in population in recent times, and urban development in the state is also large-scale. The government is delivering residents with land at subsidized costs to deal with these uprisings. An act passed in 1947, the Bombay Prevention of Fragmentation and Consolidation of Holdings Act, has these provisions in Section 18. These laws govern land acquisition and extension for such property.

The power to make modifications in property usage rests with the District Collector. The District Collector consults the village committees before changing the provisions of land use. In most cases, the village panchayat needs a workforce. The town planning department aids in preparing village configurations to extend a Gaothan property, and the department also equips the village areas for an extension.

The Maharashtra Gaothan Growth Plan facilitates land use near the community, town, and city boundaries. Agricultural landowners can buy the region within two hundred meters of a Gaothan property. Section 44 of the MLR Code has requirements for buying these properties, and the approval of these applications prohibits agricultural exercises on the property.

Highlights of the Gaothan Expansion Scheme for a Gaothan Property

The claims to purchase a Gaothan property are always demanding. Buyers should be cautious when investing in Gaothan properties. Buyers should seek legal help to confirm the validity of the agreement. They should check for any scandalous elements. Loan approval for these properties fails to ensure their legality. Taking care of the following features may be helpful:

  • Refrain from giving in to tough-looking property offers.
  • You must have the reserves and resources to purchase a Gaothan property.
  • You may have to compromise on particular aspects in comparison to urban properties.
  • Use legal assistance to confirm the legality of this property registration.
  • Purchase the Gaothan property from its owner. Check the required paperwork, home loan clearance, and background checks thoroughly.

What Are The Activities Allowed Under Gaothan Expansion Scheme?

The Gaothan Expansion Scheme permits some activities to proceed on a Gaothan property. Some are personal care clinics, housing facilities, restaurants, and repair shops. Retailers, financial institutions, and community centres can also proceed with functioning. Social institutions, playgrounds, parks, etc., can remain on the property. Worship regions serve as manure feed and crop storage spaces. Stables for domestic animals can have only five pets per store.

Other facilities are storage, repair, and boat maintenance. Gasoline storage, net drying, and fishing can also run on the Gaothan property. Service industries, public restrooms, pharmacies, and healthcare facilities are also there. Warehouses and cold storage can be on plots with the most significant area of 0.20 hectares. Local government associations, like critical public services, are also available. A Gaothan property may also have traditional housing facilities.

Word Of Caution

Bombay High Court in August 2019 temporarily impeded the BMC from attaining any Gaothan properties, and this implies no new Gaothan development programs are coming up in the area anytime soon. Moreover, residents in these regions believe they obtain discriminatory treatment from the development authorities. The Bombay High Court’s order to impede the BMC from acquiring any Gaothan properties came after a petition was filed in the High Court, stating that villagers were being treated as ‘slums’ to be developed under the impression of slum redevelopment projects.


Gaothan Property is a common investment in Maharashtra real estate. These properties are primarily owned by villagers from the state’s numerous cities and townships. Due to insufficient documentation, buying a Gaothan property may result in conflict and legal problems. Therefore, buyers should confirm property ownership before purchasing these properties. Investing in these properties through State Government programs is the safest option.


How can you purchase a Gaothan property?

The landlord of a Gaothan property sells his land to CIDCO, which then auctions the property for builders, developers, cooperative societies, etc.

Why do Gaothan properties have such low prices?

These properties have very few amenities and facilities in comparison to the urban regions of the city. The lack accounts for the low cost of Gaothan properties.

Is purchasing Gaothan properties worth the risk?

You can purchase a Gaothan property under state-controlled programs. However, keep the documents and take legal assistance to verify ownership. These steps are necessary to keep the risks away.

Does a loan approval assure the legality of Gaothan properties?

Some regional banks offer home loans for purchasing a Gaothan property. Nonetheless, a loan approval needs to verify the legality of such properties.

Are home loans accessible for a Gaothan property?

Banks commonly do not offer loans for purchasing a Gaothan property. Therefore, buyers have to depend on their resources to buy these properties.