Hi, We r operating petrol pump on the said land from past 70 years, land has been last leased in 1997 for 35 years lease period, now we want to sell the said land, what is the procedure for selling that land.
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Please provide following details:
(i) whether pump is Dealer owned company operated or dealer owned dealer operated or Company Owned Dealer Operated?
(ii) In above case provide details of termination clause
(iii) Produce termination clause in verbatim
It's dealer owned dealer operated pump We are transferring the dealership thru reconstitution to the same person who is willing to buy the land
Obtain No Objection from respective oil company regarding aforesaid transaction.
In Oil company records you are dealer .
if you want to transfer dealership oil company consent is needed
you can add buyer as minority shareholder 49 per cent in petrol pump . Then sell the land to him
Later with oil company consent you can transfer your share to the buyer
If the land is leased you can't sell the land only assign it to other party for future.
You need to get an NOC from the oil marketing company whose outlet you are running now for transfer of business to the new entity. After expiry of the lease period, you may vacate the property.
- Since, the said land is on lease , then without getting the approval and converted to free hold , you cannot sell the land.
- You can apply to the lessor for getting the said land registered in your name after paying the required fee.
- However, the business firm can be transferred to other after taking the permission from the oil company
As per your contents the land for the operation of the petrol pump is on lease for 35 years from 1997 and the lease period would expire only in the year 2032, therefore without cancelling the lease agreement you may not be able to sell the property.
So first you may have to cancel the lease agreement and evict the tenant to deliver vacant possession to the prospective buyer.
You can’t transfer your petrol pump licence directly.
For doing so you have to file for Reconstitution of petrol pump licence. Now to be eligible for reconstitution, your petrol pump should be at least 5 years old and licence should not have been reconstituted for last 5 years (apart from the cases arising from death of proprietorship firm) .
Now apply for reconstitution at your territory/regional office in a prescribed form with all relevant documents, format of which can be collected from your sales officer.
In this reconstitution you can transfer maximum 49% ownership to the incoming party and you will remain minimum 51% owner.
After reconstitution is done get your new partnership firm registered with the same percentage ownership as filled in reconstitution form.
Now wait for 5 more years from the date of reconstitution and go for it again and now you can transfer full 100%.
This is the process to transfer your pump licence.
You can’t transfer your petrol pump licence directly.
For doing so you have to file for Reconstitution of petrol pump licence. Now to be eligible for reconstitution, your petrol pump should be at least 5 years old and licence should not have been reconstituted for last 5 years (apart from the cases arising from death of proprietorship firm) .
Now apply for reconstitution at your territory/regional office in a prescribed form with all relevant documents, format of which can be collected from your sales officer.
In this reconstitution you can transfer maximum 49% ownership to the incoming party and you will remain minimum 51% owner.
After reconstitution is done get your new partnership firm registered with the same percentage ownership as filled in reconstitution form.
Now wait for 5 more years from the date of reconstitution and go for it again and now you can transfer full 100%.
This is the process to transfer your pump licence.