Slum leases that were previously non-transferable for three years can now be transferred. After three years from the lease issuance date, the plots currently restricted from sale or transfer can be moved to the buyer’s name. Just before the announcement of urban body elections, the Rajasthan state government has taken a big decision regarding the transfer of leases under the Urban Service Camp.
According to the order issued by the Urban Development and Self-Governance Department, this will be applicable in the cases of those slums in which leases were issued on a non-transferable condition under the order of June 29, 2022. If the original lessee sold the plot through a registered sale deed, the plot may have changed hands several times. Therefore, the name transfer can be executed in favor of the last buyer. The prescribed amount will have to be deposited as per the land execution rules. For this, the amount prescribed by the Rajasthan Government will have to be deposited.
For example, a person obtained a non-transferable lease in a slum area. He later sold the plot to another person through a registered document. The plot was subsequently sold further. In such cases, after the three-year period has elapsed, the current or last buyer will be able to have the land transferred to his or her name.
What is called a slum
A slum is an overcrowded urban settlement marked by severe deprivation. Specifically, people build shelters with weak, makeshift materials. Furthermore, these neighborhoods lack basic municipal services such as clean water, electricity, and proper sanitation. Consequently, infectious diseases spread rapidly among residents. In addition, most occupants live without legal land ownership. Therefore, families endure chronic poverty and face the constant risk of eviction.
Benefits of Slum Lease transfer
Allowing the transfer of slum lease rights (often granted under leasehold titles or patta schemes) marks a major shift from restrictive, in-situ rehabilitation policies to formal property rights.
Here is a breakdown of the key benefits, implications, and safeguards surrounding this policy:
Key Benefits of Transferable Slum Leases
- Asset Monetization and Liquidity: Beneficiaries can legally sell. Moreover, they can gift or bequeath their housing rights. Thus unlocking the locked economic value of the property and building generational wealth.
- Access to Formal Credit: Financial institutions are much more willing to accept legally transferable lease deeds as collateral. Thus allowing residents to secure formal loans rather than relying on predatory local moneylenders.
- Elimination of the Informal/Grey Market: Previously, restrictive “non-transferable” clauses did not stop sales; they simply pushed transactions into informal channels via unregistered powers of attorney. Legalizing transfers brings these transactions into the formal system with proper documentation and stamp duty revenue for local bodies.
- Incentive for Upgrading and Maintenance: When residents know the asset carries clear, transferable market value, they invest more readily in durable, permanent structural upgrades and maintenance.
- Mobility for Livelihoods: Families are no longer “locked” into a specific physical location just to protect their housing claim. If better employment or education opportunities arise elsewhere, they can legally transfer their holding and relocate.
Common Conditions and Safeguards
To prevent speculative land-grabbing by developers and the immediate displacement of vulnerable families, such policies typically include specific safeguards:
| Safeguard | Purpose |
| Lock-in Period | Requires the original beneficiary to hold the property for a mandatory period (e.g., 5 to 10 years) before selling. |
| Transfer Fees / Regularization Charges | Levied by urban local bodies to capture part of the land value appreciation and reinvest in local civic infrastructure. |
| Buyer Eligibility Criteria | Restrictions ensuring that subsequent buyers belong to defined income groups (e.g., EWS/LIG) to maintain affordable housing stock. |
The rule will not apply to every non-transferable lease.
The government has also clarified that, in cases of non-transferable leases other than those in slums, it will be necessary to follow the conditions set out in the lease. That is, completing three years will not automatically grant the right to transfer any non-transferable lease. Action will be taken based on the terms and conditions of the relevant lease and applicable regulations.
Rules for power of attorney and gift deed.
The government has instructed that documents such as power of attorney and gift deed will serve as the basis for name transfer in UIT leases. Cases like these will be handled based on the documents mentioned in the order from January 8, 2020. Additionally, they will follow the directive from the notification dated January 15, 2020. If the plot was sold based on pre-allotment before the lease was issued, then the process must follow the notifications from the Finance Department dated July 10, 2024, and September 12, 2024.