An Article About"KILLING A STORM WATER DRAIN TO STRANGULATE A LAKE"

Real Estate Reporter Monthly magazine of property matter

Succumbing to pressure from a series of litigations on protecting the natural canals and storm water drains (SWD) connecting lakes and river, the District Administration carried out a survey. 

But the manner in which the survey was done, especially on the one leading to the Chikka Kallasandra Lake, shows the administration's reluctance to execute the Karnataka High Court order to this effect.

Three years ago, the High Court had ordered the survey of all SWDs, known as Rajakaluve in Kannada, removal of encroachments in and around them and subsequent fencing. The Court was also categorical that no polluted or untreated water should be let into the SWDs. The legal intervention was critical since these Rajakaluves are the feeder canals for the lake, besides the Vrushabhavathi and Arkavathi rivers. Simply put, reviving lakes in the City will be impossible without ridding these canals of encroachment.

On January 5, the then Deputy Commissioner of Bangalore Urban district, G C Prakash called a press conference with BBMP Chief Engineer (SWD) to announce the completion of the SWD survey. He declared that the entire survey sketch would be handed over to the SWD division of the BBMP. Based on this statement, an RTI application was filed in the SWD division seeking the survey sketch of the Rajakaluve in the upstream and downstream of Chikka Kallasandra lake.

Information held back

BBMP did furnish the survey sketch of the Rajakaluve in the downstream, but held back information about the Rajakaluve in the upstream. The implication was clear: The survey sketches super-imposed on Google Earth images show that the two kilometers long Rajakaluve has been fully encroached upon. An eviction drive, if carried out, will lead to demolition of a large number of buildings.

In its written reply to another RTI query on the survey sketch of the upstream Rajakaluve, the Palike’s SWD division had this to say: The application is forwarded to the Deputy Director Land Records. This official is to provide the required information.

But yet another RTI query addressed to the Deputy Director of Land Records has not yielded any information. The application under the RTI Act was filed 60 days ago.

Aiding encroachers

The Palike has apparently another reason to shy away from furnishing more information: It was instrumental in shrinking the SWD’s size in the lake’s upstream. Central, State and international bankers’ funds besides the Bangalore tax payers’ money were used to construct box drains, thus reducing the size of the Rajakaluve by almost one-tenth of its actual size. The box drain provided a strong foundation to construct multi-storied buildings exactly on the Rajakaluve. 

Private gardens, garages, apartments, shopping complexes and many other structures sprang up in the remaining portion.

Survey sketches super-imposed on Google Earth images show that the two-km-long 

Rajakaluve has been fully encroached upon.

As per Mr. B. S. Sathyanarayana, ex. Mayor, Bangalore, The Lake has been fully encroached upon. Houses, bus shelters and shops have come up. It is shocking that the BangaloreMetropolitan Task Force, an otherwise hyperactive organisation, is sitting idle despite the encroachment of a government lake. This lake also figures prominently in the A.T. Ramaswamy committee report.

But Mr. M. Lakshminarayana, Commissioner, BBMP says, “I am not aware of the encroachment of Chikka Kallasandra Lake. I will get details from the lake division of the BBMP. If there is encroachment, we will initiate measures to clear it.”

However, Mr. Gurappa Naidu, State Cong Party, has said that without the involvement of public representatives, such encroachment cannot happen. It is daylight robbery. he urge the State government to initiate measures to revive the lake and clear the encroachment at the earliest.

The people’s reaction is different.  According to Mr. S RAVI KUMAR, Social activist and 

area resident said that Government turning a blind eye to the lake encroachment raises many doubts. The water table in the area has gone down drastically. If no action is taken now to save lakes, Bangalore will become an unlivable place.

An Article About"PREVENTIVE STEPS BEFORE PURCHASE OF PRE-OWNED PROPERTY"

Real Estate Reporter Monthly magazine of property matter

If you are purchasing an independent pre-owned property or a flat in a housing society, initially ask for the original share certificate. One way of ensuring right ownership for property, is to verify the house agreement.  To double check, you can also peruse the telephone and/or electricity bills, as they are issued only in the name of the lawful owner of property. Alternatively, you can check the housing society’s maintenance bill which contains the owner’s name and propertytax details.  This document will also highlight any pending charges that are due payable by the owner of the house orflat which you propose to buy. This is crucial because, if the owner sell the flat without paying his entire outstanding dues, the society may recover the same from the new owner.  In order to avoid such hassles, better to ask the Housing Society to issue a No-Due Certificate or a No Objection Certificate.

Please note that any pending litigation on the property should also be a warning signal because the purchaser is legally bound by the result of the suit, and in case the Court establishes that the seller was not the rightful owner, you will have to hand over the property to the true owner who obtains a Judgment and Decree to that effect issued by the Court of Law. 

To check for pending litigations on the property, the lis-pendens registry available at Sub Registrar’s Office need to be verified, as it will contain the owner’s name in case any litigation is pending.

Mortgaged properties are the other lemons, you need to watch out for.  In such cases, the original documents of the property are invariably held by the concerned lending Institution.  As such, in case the Seller fails to show you the original documents of the property, there is every reason  for you to be more alert.  In case the Seller claims that he has cleared the entire outstanding dues, then insist for Bank’s full satisfaction letter or original discharge letter.

Before conclusion, it is generally opined that a clear title is not assurance enough and as such one should even consider to contact previous owners, to rule out any fraudulent transaction. As a prudent purchaser, it is better to publish a ‘public notice’ in the newspaper inviting objections if any against your proposed purchase of said property. 

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Property investment,

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An Article About"AFFORDABLE HOUSING NEEDS INCENTIVES"

Real Estate Reporter Monthly magazine of property matter

Expensive land, high financing costs and multiple approvals is keeping many real estate players away from affordable housing projects. Pranav Ansal, Vice-Chairman, Ansal Properties and Infrastructure Ltd, said that meeting the target of Government’s ambitious scheme ‘Housing for all by 2022’ is be close to impossible, despite the positive sentiment in the industry after the BJP came to power.

Ansal added that no big developer enters affordable housing sector due to high land costs. “We have no plans of doing it unless the Government changes some bye-laws or give some benefit such as higher floor area ratio (FAR),” he said. According to Government estimates, the housing shortage in India is close to 18.78 million, 97 per cent of this is in the economically weaker section and low income group.

Urban Development Minister M. Venkaiah Naidu has maintained that the Government is banking on private participation and an interest subvention plan would be announced soon with the new housing mission. But, real estate players say that interest cost is only part of the problem. Raj Gehlot, Chairman, Ambience Group, said, “FAR needs to be hiked and infrastructure needs to be in place to accommodate higher FAR.”A recent Cushman & Wakefield study revealed, launches in affordable housing segment dropped by 52 per cent in eight cities in third quarter of 2014 as against the corresponding period last year.

Taxation

Rohit Raj Modi, President, CREDAI- NCR, said, “The Government needs to address the double taxation on land component, as stamp duty is paid by the developer when he purchases the land and also by end buyer. In order to make affordable housing lucrative for developers, the state needs to give VAT waiver and Centre needs to reduce the excise duty.” He added that a multi-agency committee should be formed to provide single-window clearance. Builders argue that apartment costs can be reduced if the time taken to get licenses can be brought down. On an average it takes 1-2 years to get all clearances for a housing project

Some States such as Haryana have taken steps to make affordable housing possible through the Affordable Housing Policy, 2013, which has received several applications. Under this policy, Supertech will be offering houses between Rs.12 lakh and Rs.20 lakh, while Raheja Developers unveiled a project in Sohna offering 1,660 apartments priced at Rs.3,600 per sq ft. Tata Housing too is developing townships under the brand Tata Value Homes which offers affordable housing in Boisar, Vasind, Ahmedabad, and Bengaluru. Brotin Banerjee, MD & CEO, Tata Housing Development Company, expects the demand for affordable housing to increase by 20 per cent per annum at least for the next decade. “The Government has already relaxed FDI norms inconstruction which will help in project financing. The sector now requires introduction of key reforms and streamlining of the regulatory approvalprocess,” he said.

An Article About "SELLING WATER BECOMES LUCRATIVE PRIVATE BUSINESS"

Real Estate Reporter Monthly magazine of property matter

Most of the bore wells in and around Bangalore is dried  Some intelligent people who own a small piece of land dig very deep and huge bore well to do water tankerbusiness are the cause of drying the other bore wells in around that area.

One resident claims that water supplier continuously selling water for two years in his area has become the owner of a multi-storied Apartment which has been constructed on his land.  This gives an insight about the quantum of money he has earned and saved after meeting all his other necessities in two years, with no liability to Income tax or any other local taxes. Whereas the BWSSB not charging anything for these bore wells since it is on a vacant land and is not registered. On the other hand the dried bore wells of residents/apartments continuously receiving the bills for bore well even though it is not yielding any water.

Due to this lucrative income, private water suppliers have mushroomed across the city, and who come to your rescue in times of crisis.

The vast part of the namma Bengaluru depends on the water they supply. Some of us like to believe the public authorities when they try to deny the existence of ‘Organised group’ in managing water or garbage but their existence is a reality. They exercise a form of ‘public authority,’ by controlling the water supply? What is not clear is how mafia authority is enacted and maintained and, in particular, the relationships of mafias’ share with 'the state’.

Water tanker operators are often backed by the local corporator, the legislator, or a powerful politician. In some cases, political patronage is open. In others, patrons operate in the shadows. These groups have strict unwritten demarcated territories to operate.

TheBoost of Real Estate Activities in the outskirts

Most of the colonies mushroomed on the outskirts of Bangalore are totally dependent on the ground water supply only. The BDA has not recognised approximately 90% of residentialsettlements at Bangalore’s periphery – around 500 square km and a population of two million – have developed the way they have, and considered as  'unauthorised.’

Certain residential layouts acquire greater legitimacy than others through the exercise of public authority. The local governments accept the property taxes paid by informal resident, tacit sanction from an urban authority, investment in roads or water supply by a local politician, or protection offered through networks of political actors.

All settlements exhibit varying shades of legality and tenure security, depending on the sanctioning authority. In fact, even the so-called formal BDA layouts possess varying shades of legality. Due to this fluid situation that water tanker has been able to flourish and service the majority of peripheral settlers. The key to the success of Water tanker owners is their complicity in both water and land regimes. From the early 1990s, the deregulation of land has fostered crony capitalism in the real estate sector, and has provided ample opportunity for speculative and exploitative land deals. This has further bolstered the authority of water mafias.

The BWSSB services approximately 5 lakh domestic connections with 900 million litres a day of treated water from the Cauvery River, only 10-30% of households at the city periphery have access to BWSSB’s water. Here, most depend almost entirely on groundwater sourced from household bore wells, municipal or village bore wells, and water tanker suppliers to meet their domestic needs.

The water tanker owners are tapping the aquifer quite indiscriminately in the absence of groundwater regulation. This has encouraged households, apartment complexes, commercial establishments and water tanker businesses to tap the natural resources. The average consumption of ground water is estimated over 600 million litres per day in Bangalore, which is approximately half of BWSSB’s water supply. Over the years, water table has plummeted.

The domestic bore wells are not on public domain on where tanker businesses source their groundwater from based on their customer requirements. An estimate by the BWSSB suggests that there are around 200 private water tanker businesses in the city, each operating two to three tankers. The Tanker business work round the clock, making delivers to 15-20 houses per day at approximately Rs.250-300 per load which may contain approximately 4000 litres of ground water.  On an average he middle class people spends around Rs.1000 to 1500/- per month for procuring water from the tanker business. They generally use only tractors in order to approach informal settlements through unpaved and rough roads.

Running a tanker business is lucrative. The inputs are virtually free. Only a mobile phone and one or two water tankers are enough. On a typical day, a tanker owner operating in a densely populated residential area can make around Rs 8,000-12,000 depending on how many tankers he owns. If the business is able to pump groundwater through subsidised electricity or diesel-powered generators, the only cost is the diesel required to fuel trucks or tractors. Since diesel is also subsidised, profit margins can be quite substantial.

Territorial discipline:

Like any other business they too have stiff competition.  So they want to have this competition within their territory and they will not step in to others territory.  There is unwritten agreement to maintain their jurisdictional territories.  They too have strong customer base. They claims to be social workers since they help the citizens neglected by the authorities.  They have friends in administration and elected representatives on whose patronage they enjoy.

Artificially creatingscarcity to maximize their business.

The tanker operators also collude with lower-level officials to restrict water supply so that they could offer the alternative and payments from consumers were shared with these officials. There is no difference between a politician and people like water tanker operators.  Because once you have money, you can get power and become something, and once you have power you can get more money. Power is very necessary. That is the game of the day to become powerful politician and vice-versa.  

An Article About"Deed of Covenant for Production of Title Deeds"

Real Estate Reporter Monthly magazine of property matter

The transfer of immovable property by way of sales, gift,will, releases etc. presupposes that documents to the title of transferred immovable property are delivered to the transferee on completion of process. This is statutory obligation. Section No. 55(3) of Transfer of Property Act, casts this responsibility on the seller. But the section has a proviso that in case where only a part of the property is sold and the seller retains a part of the property the seller is entitled to retain the original documents, and copies of such documents are delivered to the purchaser.

In case, where the property is transferred to different persons, in different lots, the transferee of greatest portion is entitled to hold the documents of title and others are provided with copies of such documents.

In the circumstances dealt above, the persons holding the documents either the seller or one who hold the greatest portion has some responsibilities. He has to keep the documents in safe custody and in good condition. He has to make available the documents for inspection to other buyers, and also furnish the true copies of such documents; extract from such documents, whenever required.

But the cost has to be met by the buyer who needs such inspection or copies, extracts. Those responsibilities are required to berecorded properly.

The document, which records such obligations of safe keeping the documents; producing them for inspection, providing copies, extracts is called “Deed of covenant for production of documents.”

The deedof transfer like sale, gift, will, and release may contain such a covenant by the vendor in favour of purchaser or a separate deed may also be executed by the vendor in favour of purchaser.

In case of the person holding greatest portion, a separate covenant deed about his obligations becomes necessary. A separate deed in favour of each of other transferee of other portions or a common deed in favour of all other transferees jointly may be executed.

In the deed of transfer of the greatest portion or of highest value an explicit covenant, that, the transferee shall safe keep the documents in good condition, produce for inspection of other transferee and furnish true copies or extract should be included. Similar relevant covenant should also be incorporated in deed of transfer of other transferees.

Generally all the portions of the property are not transferred at the same time, and the above suggested procedure may not be possible. In such cases, the transferor should give a covenant of production of documents in each of the deeds of transfer and it should further provide that if and when the transferor handsover the documents to any other transferee at a later date he would procure a similar condition from the such transferee. Under a covenant of production of document, the original covenantor remains liable indefinitely unless a condition provides that he is no more responsible after he parts with the remaining portion of the property.

Stampduty: In case the condition is included in the deed transfer itself, no separate stamp duty is payable. If a separate deed is executed, it attracts the stamp duty as that of an agreement depending uponthe stamp duty prescribed by the state.

Registration: This deed of covenant does not require the registration, but it is advisable to get it registered.

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Legal Query,

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An Article About "BAIYAPPANAHALLI – YELAHANKA – KIA RAIL LINK TO THE AIRPORT"

Real Estate Reporter Monthly magazine of property matter

Airporthalt for existing trains could take face bureaucratic delay

   

Bengaluru:  Decorated coaches designed exclusively for air passengers, hasslefree, traffic-free and super quick transit from Baiyappanahallistation to the Kempegowda International Airport (KIA), shuttle bus services right up to the terminal.

The existing railway link from the city to Devanahalli/Chikkaballapura could be tweaked with minimal cost to make this proposal a reality in months.

South Western Railway (SWR) Officials say the rail traffic on Bangalore City to Yelahanka line is extremely high, and it does not make sense to run airport trains from Yelahanka to KIA.  Urban rail experts have a ready solution for this.  Change the route from KIA to Yelahanka to Baiyappanahalli, a station already linked to the Namma Metro Network, but this will require the ongoing track doubling work on the 13 KM Yelahanka-Channasandra line to be extended by another 3.5 KM to Baiyappanahalli.

Bangalore International Airport Limited (BIAL) had earlier proposed exclusive coaches customized for airport passengers to be run frequently from Bengaluru Cantonment station to KIA, but this proposal, a detailed Project Report (DPR), which  was submitted to the State Infrastructure Development Department a few months ago, could take years to reach implementation phase.

Haltdelays: 

  

Here’s why: Even the halt proposed for existing trains near the KIA trumpet flyover will not happen in a hurry.  Top South Western Railway (SWR) Official say the infrastructure for a halt – one minute or two minutes – should first come up.  The stoppage has to be then sanctioned by the Ministry. “Let the Bangalore International Airport Limited” (BIAL) first send us a proposal.  If they can fund it as well, things might move faster”, a Senior Official told.  The cost of a halt station is estimated to be about Rs.60.00 lakhs.

BIAL sources say, a feasibility and ridership study had already been conducted on running trains with coaches customized for aiport travel from Cantonment to the Airport on the Chikkaballapura line.  “Since rail traffic on this route is low, more airport-oriented trains could be run.  The entire system could beoperationalised in one or two years”, explained a BIAL official.  The report is awaiting the Railway Board’s nod.

Toboost seamless connectivity, BIAL had also proposed shuttle buses from an Airport station (along the North-Western side of the Airport enclosure) to the passenger terminals.

“TheMetro connectivity will take atleast another five years. The rail connection will ensure multi-model access to KIA till then”, the Official said. 

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Legal Query,

Bangalore property matter

An Article About"APARTMENTS AND FLATS"

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What is an apartment?

Karnataka Apartment Ownership Act 1972, defines apartments as follows:  “ A part of the property intended for any type of independent use, including one or more rooms, or enclosed spaces located on one or more floor (or parts thereof) in a building, intended to be used for residential purposes, with direct exit to a public street road or highway or to a common area, leading to such street, road or highway.

Whatis a pent house?

Pent house is a very expensive and comfortable apartment or set of rooms built on the top of a tall building with vacant space in front.

Whatis Duplex House?

Atype of house divided into two parts with two separate homes in it, upper and lower. An apartment with rooms on two levels is called as Duplex house.

Whatis a building as per Karnataka Apartment Ownership Act?

Building means a building containing four or more apartments or two or more buildings each containing two or more apartments of all such buildings and comprising a pair of the property.

Whatare common expenses?

Common expenses means

·         All sums lawfully assessed against apartment owners by the Association of Apartment owners.

·         Expenses of administration, maintenance, repair or replacement of common areas and facilities.

·         Expenses agreed as common expenses by the bye-laws.

·         Expenses declared as common expenses by the provisions of Karnataka Apartment Ownership Act or by the declaration or the bye-laws.

Whatare common profits?

Common profits means balance of all income rents, profits, and revenues from the common areas and facilities remaining after deducting the common expenses.

Whois promoter?

Promoter is one who constructs or causes to be constructed a block building of flats or apartments for the purpose of selling the same or all of them to other persons or to a company, co-operative society or others.

Whatis a flat?

According to flat Ownership Act 1972, the flat is different from apartment, though n common usage both similar, Flat is described a separate and self contained set of premises, intended to be used for residence or office or showroom or shop or godown, and includes a garage, the premises forming a part of a building. The apartment has to be used only for residence.

Whois an apartment owner?

Apartment owner means the person or persons owning an apartment and undivided interest in the common areas and facilities in percentage, specified and established in declaration.

Whatis deed of declaration?

Deed of declaration is an instrument by which property is submitted to the provisions of Karnataka Apartment Ownership Act 1972. It contains description of land on which buildings is constructed, details of building like number of storeys, number of apartments, description of common areas, and limited common areas etc.