Covenants or Conditions Applicable to the Property

Covenants and conditions are binding clauses included in the sale deed, lease agreement, or allotment letter that regulate the use, development, and transferability of the property. For industrial land, the following types of covenants typically apply:

1. Use-Specific Covenants

Restrict the property to specific categories of industrial activity.

• Only non-polluting or green-category industries permitted
  
• Prohibition on residential, religious, or commercial use
  
• Activities involving hazardous materials may require prior written approval
  

2. Construction and Development Conditions

Mandate how and when the property should be developed.

• Construction must begin within a specified time frame (e.g., 12 or 24 months)
  
• Completion and commencement of operations within a fixed period (e.g., 3 to 5 years)
  
• Compliance with sanctioned building plans, zoning regulations, and layout approvals
  
• Restrictions on exceeding permissible FAR (Floor Area Ratio) or height limits
  

3. Transfer and Subleasing Restrictions

Limit the ability to sell, assign, or lease the property to third parties.

• Lock-in period during which transfer is not allowed (e.g., 5 years)
  
• Sublease or mortgage only with prior consent of the original lessor or authority
  
• Sale or transfer must be reported and registered with the allotting agency or government body