Legal Question in Real Estate Law in India

From your query I understand that the plot you propose to purchase partly falls in DTCP approved layout and 850 sq. ft. (of the plot) falls outside the DTCP approved layout. Though Panchayats have powers to grant approval for the layouts but their power is limited. If the land area of the proposed layout exceeds certain extent, then Panchyats do not have authority to issue planning permission for the lay-out, they have just forward the file to DTCP for their approval.

Please check whether the Panchayat has actually given an approval. I have seen many layout promoters in and around Chennai Sub Urban areas wrongly and intentionally mislead the purchasers that they have got Panchayat approval for their layout. If you check the papers, they only have No-Objection letter from the Panchayat, which is not even worth the paper on which it is written on. The land gifted for public purpose would be accounted for the plots forming part of the DTCP approved layout and would not be taken into account for the lands falling outside the layout. Therefore, do not just believe the words of the layout developer and you have to do thorough title scrutiny to ascertain legal status of the approval.

It is not that easy to get a building approval for an un-approved plot. Even if you get, you will end up paying heavy charges OSR and giving up land for road alignment (to get a proper road width), apart from incurring other miscellaneous expenses.