Legal actions and disputes can significantly impact an investor’s control, use, and resale of industrial land. These complications often arise from unclear ownership, regulatory violations, or civil claims, and they can delay transactions, lower land value, or lead to outright disqualification from sale. Below are five major categories of legal challenges that typically affect industrial land:
1. Title and Ownership Disputes
- Conflicting claims over rightful ownership due to inheritance, partition, or fraud.
- Absence of a clear title or duplicate title deeds was discovered during due diligence.
- Undisclosed third-party interests (e.g., minor heirs or legal nominees).
- Pending civil suits that prevent lawful transfer or development.
- Sale deeds may be contested or challenged in courts, halting resale.
2. Encroachments and Boundary Conflicts
- Unauthorized occupation or construction by neighboring landowners.
- Encroachment by public utilities or road alignments without proper compensation.
- Survey disputes over the exact dimensions and positioning of land.
- Delays in obtaining possession or implementing fencing and layout plans.
- Requires litigation or settlement to reclaim or secure boundaries.
3. Regulatory and Zoning Violations
- Construction or usage in conflict with local zoning laws or master plans.
- Unapproved change of land use (CLU) from agricultural to industrial.
- Illegal developments are carried out without permits or licenses.
- Environmental clearance or factory license violations leading to notices.
- Authorities may restrict registration or issue stop-work orders.
4. Government Acquisition or Litigation
- Land subject to acquisition for public infrastructure or government projects.
- Notices under land acquisition laws may suspend development rights.
- Compensation disputes with authorities over acquisition pricing.
- Industrial land is under review by state development boards or tribunals.
- Government litigation often supersedes private ownership rights temporarily.
5. Contractual and Financial Disputes
- Ongoing litigation from prior sale agreements or MoUs not honored.
- Conflict with joint venture partners or lessees over profit-sharing or exit terms.
- Pending arbitration or legal challenges from financial institutions or creditors.
- Court orders, such as a stay, injunction, or attachment, that block resale.
- May require settlement or legal closure before a marketable title can be offered.
