Allotment Letter as Title Document

Earlier Position

Please refer this link dated 24-2-2002

http://www.financialexpress.com/news/mere-possession-or-an-allotment-letter-will-not-suffice/38532/1

Ratio: The seller will acquire this title only after the  a conveyance deed is executed and registered in his favour.Mere allotment letter not enough even if possession has been given

Current Position

What are the documents required to legally own a house?

http://www.vakilno1.com/realestate_qns.html

A. Ownership of a house can be by the following ways : i) By way of allotment by the Development Authorities like DDA, GDA, HUDA and other such authorities. In such cases Allotment letter issued by the authorities is the title document. ii) By way of allotment by Co-operative Group Housing Societies. In such cases Share Certificate would constitute title document. iii) By purchase from a private builder/person. In such cases a Sale/Conveyance/Transfer deed. Deed duly registered on required Stamp Duty would be the legal title document to own a house. 

When the ownership of a house is by way of allotment by the Development Authorities like DDA, GDA, HUDA and other such authorities, an Allotment letter is issued by the authorities which becomes the title document. When the allotment is by a Co-operative Group Housing Society, a Share Certificate constitutes the title document. When the property is purchased from a private builder/person, a Sale/Conveyance/Transfer deed. Deed duly registered on required Stamp Duty would be the legal title document to own a house 

http://www.indianrealtylaw.com/selling-property-in-india/documents-for-property-sale.aspx Link dated 13 Jan 2011

Finally

http://www.accommodationtimes.com/real-estate-news/home-loan-against-the-security-of-the-allotment-latters/

Home Loan Against the security of the Allotment Letters can be given -  Hon’able Supreme court in this case, reported asCDJ-2007-SC-948 on 30.8.2007 observed that Section 58 of the Transfer of Property Act...