LEASE AGREEMENT FOR LAND

THIS LEASE AGREEMENT is made on the ……………… day of …………………….. at

………., Assam
BETWEEN
Assam Industrial Development Corporation Limited, A Govt. of Assam Undertaking
established under Company’s Act 1956 having its Registered / Head Office at R.G.Baruah Road,
Guwahati-781024, represented herein by its authorized representative Sri
…….………………….., Deputy General Manager (Technical) hereinafter referred to as
LESSOR / FIRST PARTY (which expression shall unless the context does not so admit
includes its successors and assigns) of the ONE PART.
AND
………………………………….. represented by authorized representative
……………………………………………. having its head office at
……………………………... (hereinafter referred to as the LESSEE / SECOND PARTY
which expression shall unless the context does not so admit include his heirs, its executors,
administrators, legal representatives and permitted assigns successors and permitted assigns) of
the OTHER PART.

WHEREAS the Govt. of Assam handed over the land at ………………………..,

Measuring …….. Bigha, ……. Katha, ………. Lecha to the Lessor / First Party (Assam
Industrial Development Corporation Limited) for the purpose of setting up IIDC Project at
………………… and the said Lessor / First Party sub-divided the above land into plots for
setting up Industrial Units for leasing out such sub-divided plots to Industrialists / Entrepreneurs
for erecting on each Plot the Factory according to the Factory Bye-Laws and Building plans
approved by the proper Competent Authority.

WHEREAS the LESSEE / SECOND PARTY has applied to the Assam Industrial
Development Corporation Limited for grant on lease a plot of land for starting an industry under
the name and style of …………………… for manufacturing of …………………………………
AND
WHEREAS the Assam Industrial Development Corporation Limited on the application
made by the LESSEE / SECOND PARTY, agreed to grant him on lease for occupation of a plot
of land in the IIDC ………………. as described in the schedule hereunder and under the terms
and conditions hereinafter set forth.

NOW THIS LEASE AGREEMENT WITNESSTH AS FOLLOWS:

(I) In pursuant to the Law / Rules and Regulation applicable for ente ring into the Lease
agreement / allotment of land etc. for the Lessor / First Party, this instant Lease
agreement has been entered into and as such, the above mentioned Law / Rules and
Regulation will strictly adhere to the both parties of this Lease agree ment in all terms.
Further, this Lease agreement would be treated as the substitute agreement for the lease
agreement, if so entered into earlier between the both parties of this Deed. After
execution of this instant agreement, the all earlier agreement, if so executed between the
parties, would be considered as invalid and non operational in law for all purposes.
(II) In consideration of the covenant and agreements herein contained and on payment by
Lessee / Second Party amount of Rs. ………………… only towards the Annual Ground
Rent calculated @ Rs. ………………… per 1000 (one thousand) sq.m. or part thereof
 per annum, the receipt whereof the Lessor / First Party hereby acknowledges, the
Lessor / First Party doth hereby demise to the Lessee / Second Party the plot of land
described in the schedule below.
And which said plot of land is more clearly delineated and shown in the attached Plan
and therein marked red TO HOLD the said Plot of land (herein after referred to as “the
demised” premises) with their appurtenances unto the Lessee / Second Party for the
specific term of 20 (twenty) years from the date of execution of this Lease agreement
except and always reserving to the Lessor / First Party and his successors or assignees.
(a) A right to lay water mains, drains, sewers or electric wires under or over t he demised
premises, if deemed necessary by the Lessor / First Party for developing the area.
(b) Full right and title to all mines and minerals in and under the demised premises or any
part thereof.
(c) Yielding and paying thereof unto the Lessor / First Party by 30th day of April in each
year in advance the yearly rent. The Lessor / First Party reserves the right to revise the
rate of Ground Rent in every 3 (three) years. The quantum of rent determined by the
Lessor / First Party shall be final, conclusive and binding on the Lessee / Second Party
and it shall not be questioned in any court of law or otherwise.
(d) The period of lease is renewable on expiry of 20 (twenty) years on satisfaction / payment
of Annual Ground Rent, Lease Premium and any other charges as applicable at the time
of renewal.
(e) When the Lessee / Second Party for the purpose of establishing or developing the
industry on the demised property, seeks to obtain loan from a bank or other Financial
Institution by mortgaging his lease hold interest on the demised property in favour of
such Bank or institution, prior permission for the same is necessary and will be given by
the Lessor / First Party to this effect, provided such mortgage does not affect the rights
and powers of the Lessor / First Party under this deed, in any manner.
(f) In case of mortgage of such land to the Bank / Financial Institutions by the Lessee /
Second Party with prior permission of the Lessor / First Party for purpose of taking
loan / Financial assistances etc. The Bank / Financial Institutions will have a limited
right to utilize the land till expiry of lease period on failure of the Lessee / Second Party
to settle the loan / financial assistance only.
(g) Under no circumstances, the right of ownership of the land will be transferred to any
party without prior approval of the Government in Revenue & Disaster Management
Department.
(h) The leased out land should be used only for industrial purpose. In case of transfer or
ownership of the Industrial Unit or taking over of the Industrial Unit by Bank or other
Financial Institutions also for remaining period of lease, the land can be used only for
Industrial purposes.
(i) The Letter of Allotment issued to the Lessee / Second Party for allotment of land shall
be treated as a part of this agreement.

NOW THE LESSEEE / SECOND PARTY DOTH HEREBY COVENANT WITH THE
LESSOR / FIRST PARTY AS UNDER:

a) That the Lessee / Second party will bear, pay and discharge all rates, taxes, charges and
assessment of every description which may, during the said term, be assessed, charged or
imposed in respect of demised premises or the Building to be erected thereupon which
would be decided by the Lessor / First Party from time to time.
b) The Lessee / Second party shall pay the Development Charges of the Plot calculated at
the rate prescribed by the Corporation for IIDC ………………… from time to time. The
Lessor / First Party shall reserves the right to enhance the rate of Development Charges,
if the compensation payable under an award is enhanced b y any Competent Court
subsequently or there is escalation in the cost of development of the area otherwise.
c) That the Lessee / Second party will bear, pay and discharge all Service Charges, Special
Maintenance Charges, Road Maintenance Charges, Street Lighting Charges,
Arboricultural Charges and other Ancillary Services, required for the upkeep of IIDC
……………………….. which may during the said term be assessed, charged, levied or
imposed by the Lessor / First Party within stipulated time as indicated by the Lessor /
First Party in due course.
“The Lessor / First party reserve the right to revise the rate of Service charges and
Special Maintenance Charges from time to time and the decision of the Lessor / First
party shall be final, conclusive and binding on the Lessee / Second party and it shall not
be questioned in any court of law or otherwise.”
d) That the Lessee / Second party will obey and submit to the Rules of Municipal or other
competent authority now existing or hereafter to exist so far as the same relate to the
immovable property in the area or so far as they affect the health, safety, convenience of
the other inhabitants of the place.
e) That the Lessee / Second party will erect on the demised premises in accordance with the
layout plan, elevation and design to be approved both by the Lessor / First party
and the competent local authority in writing and in a substantial and workmen- like
manner the Industrial Units as aforesaid with all necessary out houses, sewers, drains and
other appurtenances according to the local authority’s rules and bye laws in respect of
buildings, drains, latrines and connection with sewers, and will commence such
construction of main production shed within the period of one year and will completely
finish the same fit for use and start commercial production within the period of 2 (two)
years from the date of these presents or from the date of possession, whichever is earlier
or within such extended period of time as may be allowed by the Lessor / First Party in
writing at its discretion on payment of retention charges as determined by the Lessor /
First Party.
f) That the Lessee / Second party will keep the demised premises and the building thereon
at all times in a state of good and substantial repairs and in sanitary condition.
g) That the Lessee / Second Party will not make or permit to be made any alteration in or
additions to the said buildings or other erections for the time being on the demised
premises or erect or permit to erect any new building on the demised premises without
the previous permission in writing of the Lessor / First Party and the Local Competent
Authority and except in accordance with the terms of such permission and plan approved
by the Lessor / First Party and the Local Competent Authority and in case of any
deviation from such terms or plan, will immediately, upon receipt of notice from the
Lessor / First party or the Local Competent Authority requiring him so to do, correct
such deviation as aforesaid, and if the Lessee / Second Party shall neglect or not correct
such deviation for the space in one calendar month after the receipt of such notice then it
shall be lawful for the Lessor / First Party, or the Local Competent Authority to cause
such deviation to be corrected at the expenses of the Lessee / Second party, which
expenses the Lessee / Second party hereby agrees to reimburse by paying to the Lessor /
First Party or the Local Competent Authority the amount which the Lessor / First party
or Local Competent Authority as the case may be shall fix in that behalf and the decision
of the Lessor/First party or Local Competent Authority as the case may be, shall be final.
h) That the Lessee / Second party will provide and maintain in good repairs a properly
constructed approach road or path along with the event across drain to the satisfaction of
the Lessor / First Party / Local Competent Authority leading from the public road /
Corporation road to the building to be erected on the demised premises.
i) That the Lessee / Second Party will not carry on or permit to be carried on the de mises
any obnoxious trade or business whatsoever or use the same or permit the same to be
used for any religious purpose or any purpose other than for the Industrial purposes
aforesaid without the previous consent in writing of the Lessor / First Party and the
Local Competent Authority and subject to such terms and conditions and the Lessor /
First Party / Local Competent Authority may impose and will not do or suffer to be
 done, on the demised premises or any part thereof any act or thing which may be or grow
to be a nuisance, damage annoyance, or inconvenience to the Lessor / First Party or
Local Competent Authority or the Owner or Occupiers of other premises in the
neighbourhood.
j) The Lessee / Second Party shall have no right to transfer / sublet whole or part of the
lease hold interest. However, in the event of specific exceptional cases, the Lessor / First
Party with the prior approval of the State Government in the Industries and Commerce
Department may allow the Lessee / Second Party to sublet a portion of a lease hold
interest (not exceeding 40%) under certain terms and conditions as framed by the Lessor
/ First Party.
k) That Lessee / Second Party will permit the members, officers and subordinates of the
Lessor / First Party and workmen and other persons employed by them from time to time
and at all reasonable times of the day during the said term to enter into and upon the
demised premises and the buildings to be erected thereupon in order to inspect the same.
l) That the Lessee / Second Party will not make any excavation upon any part of the
demised premises (except for foundation of building and for leveling and dressing the
area) nor remove any stone, sand, gravel, clay, earth or any other materials there from.
m) That the Lessee / Second Party will not erect or permit to be erected on any part of the
demised premise any stables, sheds or other structures of any descriptions whatsoever for
keeping horse, cattle’s, dogs, poultry or other animals except and in so far as may be
allowed by the Lessor / First Party in writing.
n) That the Lessee / Second party will neither exercise his option of determining the lease
nor hold the Lessor / First Party responsible to make good the damage if by fire, tempest,
flood or violence of any army or a mob or other irresistible force, any material part of the
demised premises if wholly or partly destroyed or rendered substantially or permanently
unfit for building purpose.
o) That Lessee / Second Party shall construct and complete the said buildings and put the
demised premises with the buildings constructed thereon to use herein before mentioned
within two years from the date of this Agreement or from the date of possession of the
said land is handed over to it, whichever is earlier provided that the Lessor / First Party
may at its discretion extend the time herein before provided if in his opinion the delay is
caused for reasons beyond the control of the Lessee / Second Party .
Provided that unutilized land of the allotted plot or plots shall revert to the Corporation
on the expiry of the prescribed / extended period for starting production / expansion of
the unit.
p) If during the terms of the lease agreement, the Lessee / Second Party or his workmen or
servants shall,
(i) Injure or destroy any part of building or other structure contiguous or adjacent to
the plot of land hereby demised.
(ii) Keep foundation tunnels or other pits on the demised land open or exposed to
weather thereby causing any injury or damage to contiguous or adjacent
buildings, or
(iii) Dig any pits near the foundation of any building thereby causing any injury or
damage to such building, the Lessee / Second Party shall pay such damages
thereof as may be assessed by the Lessor / First Party (whose decision as to the
extent of injury or damage, or the amount of damages payable thereof shall be
final and binding on the Lessee / Second Party.
(iv) The Lessee / Second Party shall also abide by other terms and conditions as may
be laid down from time to time for IIDC.
(v) If the Lessee / Second Party, being a registered or unregistered Partnership Firm
or a Cooperative Society, is dissolved and no successor in interest is appointed
with 60 (sixty) days of its dissolution the Lessor / First Party shall be entitled to
terminate this Land Lease Agreement without approaching any Court of law.
 (vi) The Lessee / Second Party shall not emit untreated effluent in any form (solid,
liquid and gas) from the allotted plot.

AND IT IS HEREBY FURTHER AGREED AND DECLARED BY AND BETWEEN

THE PARTIES TO THESE PRESENTS AS FOLLOWS:

3.(a) Notwithstanding anything, herein before contained if there shall have been in the opinion
of the Lessor / First party any breach by the Lessee / Second Party or by the person
claiming through or under him of any of the Covenants or conditions herein before
contained and on his part to be observed and performed in particular without prejudice to
the generality of the sub-clause, if the Lessee / Second Party transfers, relinquishes,
mortgages or assigns any part of the demised premises less than the whole or transfers,
relinquishes, mortgages or assigns the whole of the demised premises without the
previous consent in writing of the Lessor / First Party as herein before provided subject
to the exception in Clause 2(j) or if the Lessee / Second Party fails to commence and
complete the building in the time and manner herein before provided or if the amounts
due to the Lessor / First Party as rent hereby reserved or any part of the premium as
stipulated in clause I or service charge and special maintena nce charge as stipulated in
Clause 2(c) shall be in arrear and any other unpaid for a period of 90 days after the same
shall have been demanded by the Lessor / First Party or if the Lessee / Second Party
or the persons in whom the terms hereby created shall be vested, shall be adjudged
insolvent or if this Land Lease Agreement is determined as herein before specified, it
shall be lawful for the Lessor / First Party subject to the provisions of this lease deed
(without prejudice to any other right of action of the Lessor / First Party in respect of
any breach of this Land Lease Agreement) to re-enter without taking recourse to a court
of law upon the demised premises or any part thereof in name of whole and thereupon
this demise shall absolutely CEASE and determined and the money paid by the Lessee /
Second Party by virtue of these presents shall stand forfeited to the Lessor / First Party
without prejudice to right of the Lessor / First Party to recover from the Lessee /
Second Party all money that may be payable by the Lessee / Second Party hereunder
with interest thereon at 18% per annum and the Lessee / Second Party shall not be
entitled to any compensation whatsoever. Provided always that the Lessee / Second
Party shall be at liberty to remove and appropriate to himself all building erections and
structures, if any made by him and all materials thereof from the demised premises after
paying up all dues, the premium and the lease rent upto date and all municipal and other
taxes, rates and assessments then due including service charge e.g. conservancy charges
and special maintenance charges and all damages and other dues accruing to the Lessor /
First Party and to remove the materials from the demised premises within three months
to the determination of the Lessor / First Party and in case of failure on the part Lessee /
Second Party to do so, the building and erection standing on the demised premises and
all materials there of shall vest in the Lessor / First Party and Lessee / Second Party
shall then have no right to claim for the refund of any money paid by him to the Lessor /
First Party unto that time or to claim any compensation for the structure and material
put up by him on the demised premises. Provided further and always the right of re-entry
and determination of the lease as herein before provided shall not be exercised if the
industry at the demised premises which has been financed by the State Government or
Bank / Financial Institutions as defined in the Public Financial Institutions Act or
Scheduled Bank and the said financing body or bodies remedy the breach within a period
of 90 days from the date of notice issued or served by the Lessor / First Party on the
said financing institutions or institutions regarding said breach or breaches.
(b) All legal proceedings for breach of the conditions, aforesaid shall be lodged only before
the Court of law situated at Guwahati and not elsewhere.
(c) Any loss suffered by the Lessor / First Party on a fresh grant of the demised premises
for breach of conditions aforesaid on the part of the Lessee / Second Party or any person
 claiming through or under him shall be recoverable by the Lessor / First Party as per
law applicable thereto.
(d) Any, notice required to be served hereunder shall be deemed to have been sufficiently
served on the Lessee / Second Party if served by Registered Acknowledgement Due
Post and signed by an officer of the Lessor / First Party and the services shall be
deemed to have been made at the time of which the registered letter would in the
ordinary course be delivered even though returned un-served on account of the refusal by
the Lessee / Second Party or otherwise howsoever. A notification of any decision by the
Lessor / First Party shall also be served in the same manner as prescribed above.
(e) The Security Deposit made with the application for allotment of land shall be refunded to
the Lessee / Second Party after the unit goes into commercial production on an
application made by him.
(f) The security deposit shall stand forfeited, whenever there is a breach of any condition
contain in the Lease Agreement. Those units for which Corporation is not insisting
Security Deposit as fixed at the time of filling of application for land / shed, in that case
the amount of Security Deposit as fixed by Corporation as mentioned in clause 3(e) will
be deducted from the Development Charges whenever there is a breach of any condition
contained in the lease agreement.
(g) The utilized land of the allotted plots shall revert back to the Corporation on expiry of the
prescribed extended period. The Development Charges originally paid by the Lessee /
Second Party for such unutilized land shall be refunded.
(h) The Corporation shall have the right to cancel the allotment after issuing a 15 (fifteen)
days Show Cause Notice to the Lessee / Second Party for breach of any of these rules,
conditions of allotment letter and terms of this Lease agreement.
(i) The Lessee / Second Party shall continue his activities in the premises for which the
property is used leased. Stoppage of said activities in leased premises temporarily or
permanently the Lessee / Second Party shall be bound to intimate the reason of stoppage
to the Lessor / First Party in writing within 7 (seven) days from stoppage or close
down.
The Lessor / First Party shall have the right to re-entry over the property and take over
its possession, if restarting of activities do not take place within 3 (three) mo nths period
from the date of initial stoppage / close down of activity or / committing any violation of
the terms set forth in this lease agreement. The arrear dues, if any, will be realized within
3 (three) months from the date of such taking over in due course.
(j) The Lessor / First Party shall have the unfettered right to inspect the documents
justifying the utilization of assets during the leased period and the Corporation shall have
the right to get authenticated copies of such documents as and when necessary.
(k) The Lessor / First Party shall the right to re-entry over the property and take over its
possession, if the Lessee / Second Party has make any additional construction without
prior permission of the authority, the Lessor / First Party will not responsible to pay any
compensation to the Lessee / Second Party for this type of additional construction.
(l) Notwithstanding anything contained in this present Lease Agreement, the Lessor / First
Party may, on termination of this agreement, transfer or lease out the property including
the additional construction and the renovation if any, to any person by private negotiation
or public auction or otherwise at the option of the Lessor / First Party and on such terms
and conditions as the Lessor / First Party deems fit and proper.
(m) The Lessor / First Party reserves the right to impose any further conditions, stipulations
of alteration in the convent herein at any time which in the opinion of the Lessor / First
Party / Government feel it necessary for the public interest.
(n) In the case of breach of any of the terms and conditions mentioned in this lease, the
Lessee / Second Party shall cease to be entitled to the use of or occupation of the
property and the Lessee / Second Party would be liable for summary eviction by Estate
Officer authorized under Assam Public Premises (Eviction of Unauthorized Occupants)
Act, 1971.
(o) In pursuance to the aforesaid Act and Rules made there under, the Lessee / Second Party
will bound to hand over the possession of the lease land to the Lessor / First Party
without any disputes.
(p) Any arrear amount is so required to be recovered for the lease agreement or its
consequential effects arising therefrom, the same would be realized in terms of law
applicable thereto.
(q) All Power exercised by the Lessor / First Party under this lease agreement may be
exercised by Managing Director, Assam Industrial Development Corporation Limited or
such other person(s) authorized in this behalf.
Provided that the expression Managing Director shall include the person who is entrusted
by Lessor / First Party with the functions similar to those of Managing Director.
(r)` Every dispute difference or questions touching or arising out or in respect of t his Lease
Agreement or the subject matter thereof, shall be at the first instance, invariably required
to referred to the head of the Lessor / First Party and failure to get a dissatisfactory
order from the Lessor / First Party, the Lessee / Second Party only deserves the right
to refer the said dispute / difference to the Competent Court of Law as applicable thereto.
(s) The Stamp and Registration Charges on this Lease Agreement shall be borne by the
Lessee / Second Party.
(t) The Lessee / Second Party agrees that if the need arise and as per Government direction,
a separate Agreement may be required to be entered in to and signed with another
Authority instead of Assam Industrial Development Corporation Limited (AIDC),
the current Lessor / First Party in this agreement on the same terms and conditions as
contain in this agreement.
(u) If any provision of this agreement is rendered void, illegal or unenforceable under any
Law, the validity, legality and enforceability of that provision under any other Law and
the validity, legality and enforceability of the remaining provisions, shall not in any way
be affected or impaired thereby. Should any proviso of this agreement be or become
ineffective for reasons beyond the control of the Parties, the Parties shall use reasonable
endeavors to agree upon a new provision which shall as nearly as possible have the same
commercial effect as the ineffective provision.

IN WITNESS WHEREOF THE parties hereto have hereunto set and subscribed their
respective hands this day and year first hereinabove written.

Schedule of Property

All that the plot of land numbered as situated within the IIDC …………… at
……………. under Mouza -……….., Vill- ……….., Dag No. ………, Revenue Circle
……………, P S: ……….., District ……….., Assam containing by measurement ……….. Sq.M
be the same a little more or less, bounded:

On the North by ……….

On the South by ……….
On the East by ………..
On the West by ………..

IN WITNESS HEREOF THE parties hereto have set their hands this day of the month of
…………. in the year ……………

Signature for and on behalf Lessor / First Party

Signature for and on behalf of Lessee / Second Party

Signature of witness no. (1):

Name (In capital letters)…………………………..…………...
Address: ………………..….……..………
Signature of witness no. (2):
Name (In capital letters)……..………………..……………….
Address: ……………..……………………...