Summary

In Mumbai, leasing private or public land is the most common means for foreign companies to acquire land. Leasing public land is a lengthy process that may require several negotiations with the relevant public authorities. Since ownership is easy to ascertain for publicly held land, the process of due diligence is easier. Most publicly held land is leased or bought through a public auction. Such land may have restrictions on its use and transfer. Foreign companies must have permission from the Reserve Bank of India to lease land for more than 5 years. Lease contracts can be for a maximum duration of 99 years, and can offer the lessee the right to subdivide, sublease, or mortgage the leased land, subject to the terms of the lease contract. Investors face a major challenge in acquiring land-related information. There are currently efforts underway, however, to implement a National Land Records Modernization Program (NLRMP) that includes computerization and digitalization of land records and maps.