Encumbrances on the Title

Encumbrances are legal liabilities, claims, or restrictions that affect the ownership rights and transferability of a property. For industrial land, the following types of encumbrances may exist on the title:

1. Mortgages or Loan Liens

If the property has been used as collateral for a loan, a mortgage lien may be registered with the Sub-Registrar or CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest). This prevents sale or transfer without lender approval.

• Registered with banks, NBFCs, or financial institutions
  
• Requires No Objection Certificate (NOC) or discharge letter from lender
  
• May appear in encumbrance certificate or ROR extract
  

2. Legal Disputes or Litigation

Ongoing civil or revenue court cases involving the property—such as partition suits, title disputes, or injunction orders—are encumbrances that prevent clean title transfer.

• Case details are traceable via court records or legal due diligence
  
• Could include stay orders, lis pendens notices, or public interest litigations (PILs)
  
• Title clearance is required post-settlement or court decree
  

3. Government Acquisition or Reservation Notices

If the property is part of a notified acquisition plan under infrastructure projects (e.g., highways, railways, SEZ expansion), it may carry a government reservation.

• Appears in master plans, town planning schemes, or land acquisition notifications
  
• May prevent development, construction, or resale
  
• Requires compensation or clearance from the acquiring agency