An Article about "A JOURNEY THROUGH TIME MACHINE"

A JOURNEY THROUGH TIME MACHINE

If you are a Bangalore on or if you love Bangalore and want to know about your Bangalore from Nineteen thirties onwards, close your eyes, imagine sitting in the Time Machine of Dr. H.G. Wells-and-Io! - You have started your journey!
Whatever may be the reasons for your visit to Bangalore, it will not be complete without visiting the Majestic area. As you get down from the City Railway Station, (not the present building with parking lots and all, the old railway station started right from platform number 'one') you come across a big tank (lake) of about forty acres full of water (starting from the end of the present Bus Station at the south till almost the road leading towards Anand Rao Circle towards north and up to Sangam theatre area towards the east) which was called as 'Dharmambhudi kere.' You have to tread by walk only on the tank bund to reach Majestic area.

There were hardly half a dozen- city buses for the entire city. There was no Bus Station at that place and for all moffusil services; buses were stationed at Kalasipalyam near City Market. When you reach the area of the Majestic Theatre, you face a vast estate full of plants, trees, greenery and nothing else! Surprised? The estate ended at Mysore Bank square (the present State Bank of Mysore's head office.) and Government Law College. That vast garden was called "Manorama Estate." At that time, there were only a few theatres in Bangalore such as Select, Majestic, Variety and Doddanna hall. 

(Which is now called 'Paramount' near Kalasipalyam Bus Stand.) The climate of Bangalore demanded wearing of some woolen clothing all through the year except during March and April. You could not make out whether it was morning, afternoon or evening. All the time the Sun was just managing to pierce its rays through the branches of the trees. The entire city was a gigantic garden. It was an ocean of great greenery with fantastic ambiance. The mercury reached to as low a point as eight degrees centigrade on a peak winter day. The average was around fourteen degrees.

 The winter months started almost at the end of October and lasted till middle of February. In the short summer of virtually two months, the mercury hovered around early thirties. The pre-monsoon showers in May resulted in the temperature going down to below twenty-five degrees. It rained on odd days even during March and April. It was more or less continuous rains from the middle of May till October. Again it rained on Odd days during November and December. There used to be misty mornings throughout November, December and part of January too. These were mainly attributed to Bangalore being situated at over 2800 feet above Sea level.

If it was a cyclone in Madras, the Bangalorean caught cold. If it rained in Mangalore or Goa, the people here felt the chill. If it rained in Kerala, the city would have drizzles. If it is a cyclone in Andhra, the Bangalorean would sneeze. There was no other city in India than Bangalore for the best and balanced weather conditions. It is one of the main reasons for people from other States to migrate to this great city. Unlike other cities, here it was a case of roads amidst greenery and gardens, than gardens amidst the roads.

In the nineteen thirties, the population of Bangalore was just around 1,50,000. The city virtually ended at Malleswaram in the north, little beyond city railway station at the west, Basavanagudi in the south and Shivajinagar area and Mayo hall towards the east. There was no Rajajinagar area let alone Vijayanagar. There was no Rajmahal, or Sadashivanagar nor Hebbal or R.T.Nagar. For that matter Jayanagar was born only in the fifties. Hebbal was a village called Gangenahalli.

Yeshwanthapur was a separate hamlet. Hanumanthanagar was called Sunkenahalli. Ulsoor too was a separate hamlet. Most of the cantonment area belonged to the Defence Establishments. All the hundred odd surrounding villages became part of the city over a period and were christened Royal with new names.

For transportation and conveyance, there were hardly half a dozen private buses plying inside the city. Thee were Jutkhas (horse drawn carriages) mostly in the city area. At the cantonment area, human drawn carts and cycle rickshaws were popular. The autos made their appearance only in the late forties. Again there were a dozen taxis in the entire city confined to the city and cantonment railway stations. Most of the Bangalore ans preferred to walk it was not strenuous due to the fine weather conditions. There were hardly about two thousand cars in the entire city and most of them belonged to the British and the Anglo-Indians apart from few locals. Almost all the cars were of foreign make. Later, Fiat, Standard and Ambassador cars of Indian make made their entry. Scooters too were not invented by then. There were a few hundred motorcycles of foreign make like BSA, Red Indian and a few others. Enfield and Java made their annas only! petrol was below fifty paisa and crossed sixty paisa marks only during late Fifties. There were very few petrol bunks of Burma Shell and Caltex, which were foreign companies.

There were no big hotels or restaurants during that period except a few small ones in each area. The cost of a cup of coffee or tea was six paisa only! Not the present six paisa but the old six paisa, which is equal to the present three paisa. At that time, a rupee constituted sixteen annas. Each anna was equal to twelve paisa, which worked out to one hundred ninety two paisa for a rupee! And for that 192 paisa, you could get 192 masal vadas with chutney! The cost of an idli or uddin vada was only three paisa, which is equal to the present one and a half paisa, so was the cost of the normal big sized sada dosa with chutney. For masala dosa lovers, you could have a big sized masala dosa made from pure ghee for just one anna only! Which is equal to the present six paisa. (~ have said 'pure ghee' since the people were not aware of adulteration tactics at that time.) Three pooris with saagu too cost the same price. How great it would have been if it was the present salaries and the past prices?

Now that your stomach is full; how about some entertainment? You could watch a movie in any of the theatres from one ann a onwards and you will be the King of the balcony just for six annas only! (Which was equal to the present thirty-six paisa). After watching the movie, if you want to have dinner, you would get a good full meal for just three For people who decided to settle down in Bangalore, the rent of a house suitable for middle class, ranged from five rupees to ten rupees only! Depending upon the size and area. You could get twelve serus of rice or twenty serus of ragi for one rupee only! (A seru was little more than a KG in quantity. Eight chatakus constituted a seru, two chatakus, a paavu, and four chatakus a padi, which was half a seru.) 

Again, a rupee could procure eight to ten serus of milk and one seru of pure ghee! You could buy a yard of cloth for pant or coat just for eight annas, which is equal to the present fifty paisa only! (A yard is slightly less than a meter, - three feet is equal to a yard). A good cotton saree of eighteen-yard length cost just three rupees and silk saree of same size was available for twenty rupees! A silk saree with big jhari border cost twenty-five rupees only! A pair of dhoti cost just a rupee only! Gold, Silver and Copper were very cheap. The cost of one sovereign of gold was thirteen rupees only! And one tola (ten grams) of silver cost only ten annas, which is the present sixty paisa! At that time one rupee coins were made of silver, which weighed one tola. Nickel was used for making eight anna, two anna and one anna coins. One paisa coin was made of copper.

Perhaps you have started to wonder as to what would have been the emoluments during those days if things were that cheap. The highest paid person was the Viceroy of India whose monthly salary were thirty thousand rupees. The Deewans in the States were paid five thousand rupees a month. Government employees earned a monthly income ranging from ten rupees to twelve rupees. A constable of police was paid just two rupees per month as salary. (Nowadays, do you think a corrupt cop would accept anything less than twenty rupees at a time?) A primary school teacher was paid ten rupees a month and a peon earned five rupees a month. During those days, a man who had assets to the extent of ten thousand rupees in rural areas was considered as a rich man and in towns and cities, a man with assets of over one lakh rupees was considered as a very rich man!

So, now you can make out that the income and expenditure accounts never tallied even during those days. The history of deficit budget was prevalent for individuals as well as for the State even then. No wonder; there was hardly anything to save in those days too, - of course! - For an honest man.

Bangalore attracted business people, mostly outsiders, as most of the locals lacked vision. The local people except a few did not anticipate the potential for the growth of the city. Mostly Gujarathi, Marwaris, Jains, and Sindhis from Gujarath, Rajasthan, Delhi and Bombay entered the scene. Do you believe that the stretch of an acre of land where the Alankar market complex is situated at the K G Road at present was purchased by a lucky man for just one hundred fifty rupees in the nineteen thirties? The land of another acre where the Gupta market is situated at present was bought for just two hundred rupees during the same period! Our friends in the Real Estate business now, will definitely wish they had started doing their business right from those days. Step by step the development took place and building activities increased after our country gained Independence. Many banks, theatres and other business establishments started appearing one after another. The all round growth was rather fast in the fifties. 

The population figure crossed ten lakhs by the early fifties. The number of auto rickshaws, taxis and BTC buses (there were no BTS buses at that time) increased. The factory buses of HAL, BEL, ITI and HMT, added to the traffic. The car population too increased. For the first time we could see more of the three Indian cars on the roads and even then the vehicle population was hardly around 15,000 only. Tourist buses and Contract carriages made their entry for people who wanted to visit other tourist spots from the city. During those days, the auto fare from Majestic to Brigade road cost just sixty paisa and thus the autos for Bangalore became a necessary nuisance.

During the late forties and early fifties, theatres like Prabhath, States, Jai Hind, Sagar, Geetha, Kempegowda and Himalaya came up in the Majestic area. (Other theatres came up later) Apart from this, there were a few like Paramount near Kalasipalyam, Naaz and New City at N R Road, Liberty, Plaza and New Empire at the MG Road and New Opera and Imperial at Residency Road appeared. While a few others like Swastik, Central, Bharath, Shivaji, Minerva Super and Jayashree came up in the city area; Elgin, Everest and Shree came up in the cantonment area. All other theatres came up later.

Not to be left behind in the race, the hotel people too became active. Some of the oldest and popular hotels and restaurants were Anvari and Greenway, (two non-vegetarian hotels) which came up next to the Geetha theatre. (Geetha has been converted into a commercial complex now.) Some good hotels like Neo Mysore Cafe, opposite States theatre, Vasanth Vihar next to Sagar theatre, Vittal Vihar near the Law College and Vishnu Bhavan below Kempe gowda theatre catered to the needs of the growing population. Each one of these hotels had regular customers due to a distinct taste and quality aintained by them.

Government Arts and Science College, Central College for science, St., Josephs College, Government Law and Medical Colleges helped citizens in the pursuit of education. There was one High School called Vani Vilas High School exclusively for women. Some schools like Fort High School at Chamarajpet. Malleswaram High School, Seshadripuram High School, and Western Mission were popular. Some great personalities like Sir. M Visweshwariah who had been awarded the Bharata Ratna, the Nobel Prize winner Dr. c.v. Raman, writers and poets like MIS. D.Y. Gundappa, Masti Venkatesh Iyengar, T.P. Kailasam, K.Y. Iyer, T.S. Venkataramaiah, K. Y. Putappa, Navaratna Rama Rao, Y. Seetharamaiah and G P Rajaratnam were motivating the patriotic spirit amongst the people through their poems, plays, peeches and writings. 

That was the great Bangalore of thirties forties and fifties. There is no need to write anything about the present, as you are all well aware of them. We are all responsible directly or indirectly for the factors contributing to the present state of affairs and definitely we all have to pay the price for the present mess the city is in. However, some leaders, executives politicians and the present Government headed by Shri. S M Krishna has made a great beginning to improve Bangalore and there is no reason not to expect better days at least in a decade or so. Finally, it is indeed great to note the interest evinced by the judiciary in the aspect of the citizen's welfare. Of late, some citizens too have shown interest in the improvement of the conditions of the city and the formation of area wise citizen's welfare associations is indeed a very good sign for the future of our great city.

An article about "REQUIREMENTS FOR DRAFTING DEED"

REQUIREMENTS FOR DRAFTING DEED

Before drafting any kind of deed of transfer, it is very important to incorporate all the necessary requirements for the effective enforcement of such deeds apart from giving legal sanctity, which requires due diligence and thorough scrutiny, the following are the special 

Before drafting any kind of deed of transfer, it is very important to incorporate all the necessary requirements for the effective enforcement of such deeds apart from giving legal sanctity, which requires due diligence and thorough scrutiny. The following are the special requirements discussed below:

Nature of the Deed

The deed has to specify the description of the deed, such as “This Deed of Sale”, “This Deed of Mortgage”, “This Deed of Agreement to sell”, etc, which may not necessarily be in Bold letters, but is preferable in order to highlight the nature of the deed.

Date of Execution:

It is very important to mention the date of execution of the deed since the same is required for determining the limitation and also for registration of such conveyance in the revenue records by the concerned revenue departments. Further, the date of execution of the document may vary from the date of registration. However, the documents can be presented anytime within four months from the date of execution.

Parties to the Deed:

All the proper and necessary persons pertaining to the property intended to be conveyed have to be mandatorily made as one of the parties to the deed in order to avoid any future legal disputes, likely to be raised by the parties having interest over the schedule property. It is also important to properly depict the status of each party to the deed.

Recitals

The deed shall contain the previous history pertaining to the property in the precise way, explaining the nature of the interest and motive behind the execution of such deed, which authenticates the title, which is called Recitals in the legal terminology.

Habendum

This part of deed speaks about the interest in the property that the purchaser is being conveyed such phrases as “To Have and To Hold”. This phrase can be seen in almost all the deeds.

Covenants

A covenant is an agreement wherein either or both the parties to the deed bind themselves to certain terms and conditions, which create an interest over the property, which may be express or implied. In the recent times, with the advent of Apartment culture, it is very necessary to incorporate covenants of various types besides those for maintenance of common areas and facilities in the deed.

Testimonium

This is the part of the deed which states that the parties have signed the deed. This is very important in order to prove the authentication of the execution of the deed and the necessary involvement of the proper parties having interest in the property in legally conveying to the parties of the other part.

Testatum

This is the witnessing clause wherein the witnesses signing the deed are introduced, along with their names, address and signature. This clause is also very important for the reason that the witnesses also play an important role to prove the execution of the document. However, it is advisable that both the witnesses are from purchaser/transferee’s side

Operative Words

This part of the deed depends upon the nature of conveyance. However, operative words clearly depict the intention of the parties conveying the property in favour of the other party/ies, which is necessary for passing of the title.

Parcels

This means description of the property following the operative words. Anything intended to be conveyed/assigned has to be specifically mentioned. Every minute details about the identification of the property has to be clearly incorporated. Any ambiguity about the description of the schedule property may lead to serious problems.

Exceptions and Reservations

Property intended to be transferred must not fall within the ambit of those prohibited under statute or the Government. This part of the deed speaks about the conditions restraining the alienation and assurance that such alienation does not involve any restrictions.

Exception refers to some property or definite right which is existing on the date of conveyance and the same would transfer if not expressly excluded.

Reservation refers to the right which is not existing but created at the time of transfer.

Completion of transaction

The deed can be enforceable only if the same is properly stamped under Indian Stamp Act. Apart from this, it is also necessary that the same has to be registered under the Indian Registration Act. Under the said act, registration of certain documents are made compulsory if such documents fall within either of the category. Only after the registration of such documents, the right, interest and title over the property is validly transferred from the transferor to the transferee. However, registration of the documents depends upon the nature of the transfer.

Execution

Execution of the document will be completed only after the parties put their signatures on the deed. However, special care should be taken when any of the deed is signed by the party who is an illiterate or blind or Pardanashin lady. In case any document is signed by some person by putting thumb impression, the documents has to be signed by the person who has taken the same and if any map or plan sketch is annexed to the document, then the same has to be signed by the parties.

Attestation

Attestation, is not a mere formality, but is imperative to prove the proper execution of the document. Though there is no standard form for it, the essential conditions of a valid attestation is that two or more witnesses have seen the executant sign the instrument and that each of them signed in presence of the executant. However, a person party to the deed or Power of Attorney Holder cannot sign as the attesting witness.

Possession of property

It is very important that the transferor transfers the possession of the property in favour of the transferee. It is not necessary that actual possession has to be handed over to the transferee, but even constructive possession will transfer and create right and interest over the property.

Registration of Deeds

There are certain categories of documents which lays down detailed procedure for registration of the documents and also those documents which require compulsory registration. If the document need not be compulsorily registered, then the mere execution of the document incorporating the entire requirement will complete the act of transfer. On the other hand, the documents requiring compulsory registration can be enforceable only after completing the formalities of registration. The main reason for insisting for registration is to protect the intending transferee dealing with the property against fraud and to maintain a public register at the office of the Sub-Registrar.

Thus, the transfer or assignment of right, title and interest over the property, irrespective of the nature of transfer, entirely depends upon the deed of conveyance. Any ambiguity, inadvertent addition or deletion in the deed may give rise to lot of legal problems, thereby obstructing peaceful possession and enjoyment of the property. Thus, the above discussed are the clauses required to be incorporated in all the documents to safeguard the interest of the parties to the deed.

MAKE SURE YOU APPROUCH THE RIGHT AUTHORITY FOR REGISTRATION

MAKE SURE YOU APPROUCH THE RIGHT AUTHORITY FOR REGISTRATION

Of late, people are extremely confused about the registration of transfer of properties. The registration process which was a smooth process hitherto, all of a sudden has become very tedious calling various documents, approvals, orders, which were not insisted upon earlier.  A document that is considered as correct in one Sub-registrar’s office is rejected as not correct in another Sub-registrar’s office.  The Revenue department, the Department of the Inspector General of Registration, the Commissioner of Stamps and all the Sub-registrars are confused themselves and seem unable to guide the public.

The Karnataka Government by notification RD/174/MUNOMV/2005 dated April 23, 2005 had declared the transfer of certain properties as opposed to public policy and instructed the registering authorities not to register the properties detailed in the notification.  Further, the Government of Karnataka clarifying certain points referred in its notification dated August 23, has only compounded the confusion, adding to the misery of the public and the stubborn registering authorities, leading to the unnecessary harassment of the public.

The two important points, that have affected registration are, the conversion of agricultural land to non-agricultural purpose and the approval of layouts.  Agricultural land cannot be used for any other purpose, unless it is converted to non-agricultural purpose.  Under Section 95 of the Karnataka Land Revenue Act, the Government recently introduced a ‘Single Window’ system for conversion of land.

Apart from conversion of land, the layout should be approved by the concerned authority.  Thereafter the building too needs to be approved.  Generally, the Urban Development Authority in the district is the approving authority for layouts.

But many layouts are approved by the city municipal councils, town municipal councils (TMCs), and village panchayats, which has led to low quality development works, causing heavy financial burden on the local boards and the resultant in-convenience to the people.  The conversion of land for any purpose other than agricultural should not be in violation of the approved master plan, CDP proposals.  As far as Bangalore and surrounding areas are concerned, there are various planning authorities which approve layouts.  Each planning authority has a specified jurisdiction.

People should understand that the Bangalore City Corporation (BCC), the various city municipal councils, TMCs or the village panchayats do not have any authority to approve layouts which vest with the Jurisdictional Planning Authorities.  Many problems have risen because of the unauthorized and indiscriminate approval of layouts by these authorities, exposing the public to hardships.

Approval of plans

Before we discuss planning authorities, we must understand the powers of various local bodies like the city corporations, municipal councils, TMCs and village panchayats, to approve building plans.

Constructions are permitted only on converted lands and approved layouts.  Village Panchayats may approve building plans with ground plus one structure within their jurisdictional areas only.  Gramathana sites have come under strict scrutiny and many Panchayat boards have mindlessly issued Forms 9 and 10 and any approval of building plans on such gramathana sites require extra precaution.  The gramathana sites can be identified by referring to a village map at the Department of Survey and Settlement.

According to a new circular, such sites should be certified by the village accountant enclosing a rough sketch of the gramathana site indicating the exact location in the village map along with its boundaries.

If the gramathana site satisfies all these stipulations, the Government will not insist on conversion, and the village Panchayat may approve a building plan of ground plus one floor on such sites.  However, it is very difficult to identify genuine gramathana sites as a lot of bogus documents are in circulation.  City municipal councils, TMC and the BCC may approve building plans of ground - plus – three floors only.  Any building plan in excess of ground – plus – one in village Panchayat areas and in excess of ground – plus - three floors in the areas under the city corporations and municipal councils needs approval from the town planning authorities.

Deemed conversion

As stated earlier, layouts can be formed only on converted lands.  The Karnataka High Court, in its Judgment in BDA V/s Vishwa Bharathi House Building Co-operative Society (1992(1) LJ 523B (DB) ILR 1991 KAR 440 (DB) has held that all agricultural lands within the jurisdiction of a city corporation are deemed to be converted.  But the Government has clarified that there is no such deemed conversion, but that the competent authority may grant a conversion order.

It is also clarified that though the betterment charges are paid to the concerned local authority, and the Katha is issued by the local authority, if such property comes under agricultural land earlier to payment of betterment charges, conversion of land to non-agricultural purpose is necessary under the provisions of Section 95 of the Karnataka Land Revenue Act (1964).  Under such circumstances payment of betterment charges and the issuance of the Katha is not a conclusive proof of conversion.

Planning authorities

There are numerous planning authorities authorized to approve layouts in and around Bangalore.  They are;

->   Bangalore Development Authority (BDA)->   Bangalore Metropolitan Regional Development Authority (BMRDA)->   Bangalore International Airport Planning Authority (BIAPA)->   Ramanagarm – Channpatna Urban Development Authority (RCUDA)->   Nelamangala Planning Authority->   Magadi Local Planning Authority->   Kanakapura Local Planning Authority->   Bangalore Mysore Infrastructure Corridor Planning Authority (BMICPA)

Each planning authority has a specified jurisdiction.  The jurisdiction of the BDA comprises the area under the BCC, surrounding city municipal and town municipal councils and village panchayats.  All applications may be addressed to the Commissioner, Bangalore Development Authority, Kumarapark, Bangalore -20.

The office of the BMRDA is located at the LRDE building, Ali Askar Road, Bangalore, and has its jurisdiction on Bangalore urban and rural districts and Malur taluk in the Kolar district, except the areas covered under the BDA, BIAPA and other local planning authorities.

BIAPA also has its office at the LRDE building, Ali Askar Road, Opposite to Palace Guttahalli, Bangalore – 52, and has its jurisdiction over the proposed new airport and its environs.  BMICPA has a jurisdiction over the small area of about 65 sq.kms comprising the Bangalore-Mysore Inter Corridor Area.

Other Planning areas referred above have a jurisdiction over respective towns and environs.  Planning areas under the BMRDA is very vast, but infrastructure available in the BMRDA is not enough for speedy disposal of approvals, causing much delay.

In other cases, not referred above, the respective urban development authorities like the Shimoga Urban Development Authority, the Bellary Urban Development Authority etc., have the jurisdiction to approve the formation of layouts, if the lands are situated in their geographical jurisdiction.  There are 27 urban development authorities in the State.

Apart from these urban planning authorities, if land is situated in the areas under other planning authorities, the applications have to be referred to the Member Secretary of the concerned planning authority.  There are 42 planning authorities in the state.

If properties are located outside the jurisdiction of the BDA, BMRDA, BIAPA, BMICPA, urban development authorities and the Member Secretary Planning Authority, applications have to be submitted to the Assistant Director, Town Planning.

Any development activity has to be approved by these planning authorities as per the provisions of the various laws and the local bodies have no authority to grant such permissions.

An Article About "LOW-COST HOUSING ON THE RISE"

LOW-COST HOUSING ON THE RISE

While affordable housing segment is in the limelight, generating some demand in an overall sluggish real estate market, low-cost housing, essentially for the low income group and economically weaker sections, appears to be making little headway. The Government has estimated a shortage of about 25 million houses in urban area at the beginning of the Eleventh Plan, of which 97% is in the low income group. Mumbai has seen a few launches in the last couple of months.

The Maharashtra Housing and Area Development Authority, which put up 3,863 flats in the affordable segment, received a tremendous response for its offering. But then, the number on salewas miniscule compared to the over four lakh applications it attracted.

The good response for its initial offer of 1,000 units of Tata Housing Project at Boisar, has made the company to raise the number to 1,300. For this project, within three weeks, the company sold 16,000 forms for 1,000 homes, of which 7,200 filled the forms returned with an earnest deposit of Rs.10,000.For each apartment, 7.2 customers have shown interest. The apartments, in the 283-465sqft range, cost between Rs.3.9lakh and Rs.6.7lakh. The company has tied up with Micro Housing Finance Corporation to provide easy finance to its customers.

The company is planning to launch another low-cost project in the central suburbs of Mumbai. It is also biddingfor nearly 15,000 such low-cost homes in Bangalore, the National Capital Region(NCR) and other places in the next four years. The company is targeting Rs.100- 150crore revenue and an offer of 1,000-1,500 flats at each project. The company is targeting revenue of Rs.700crores from low-cost housing in the next four years. 50% of the revenue in the housing segment will come from low-cost housing and the rest from mid-income projects. According to the Managing Director and Chief Executive officer, of the company the land cost is a major issue and it should be understood that low-cost housing is high in volume with lower profits compared to high end formats. When it comes to joint ventures, thephilosophy of the landowner should be in harmony with that of the company. 

Housing Development and Infrastructure Ltd., has signed a joint venture agreement with the Mumbai Metropolitan Region Development Authority (MMRDA) to develop 525 acres in Virar. The company intends to build and hand over 13 million sqft to the MMRDA for rental housing and construct 39 million sqft for sale. The project would come under the affordable category and is scheduled forcompletion in six years. In a recent development, DHFL Property Services Ltd.,a 100% subsidiary of housing finance company of Dewan Housing Finance Corporation Ltd, tied up with developers to market affordable projects for low-wage earners. It will market a 2,400 unit project in Boisar. 

The apartments are of 380-500 sq. ft. and priced Rs.1300 a sqft Mr. B.K. Madhur, CEO DHFL Property Services, says the company has always focused on enabling access to home ownership for the lower and middle income groups across India through our mortgage finance company DHFL. The company intends to launch similar projects in other far-flung Mumbai suburbs such as Virar, Karjat and Badlapur, besides promoting such ventures in Ahmadabad, Chennai and Hyderabad in the coming months.

Buyers of affordable housing canavail themselves of bank funding. But then, the affordable housing segment also brings in certain unique limitations with it. In the case of mid to high-end housing, most buyers can readily produce proof of income, whereas only about 50% of buyers in the affordable housing segment would be able to do so.

Matheran Realty, among the first to launch low-cost homes in the price bracket of Rs.5- 7lakh in Karjat, which is100 km from Mumbai, says its buyers are finding it difficult to get finance. According to Mr. Pravin Banavalikar, CEO, though his project has been pre-approved by 10 banks, only about 250 of over 1,800 applicants who sought loans have received sanctions.

Mr. Ashutosh Limaye, Associate Director Strategic Consulting, Jones Land LaSalle Meghraj, says high land costis a deterrent for developers to offer affordable homes. Otherwise, low-cost housing, especially in the metros, is virtually a risk-free proposition. Importantly, even in affordable housing, a developer would have certain minimum profit expectations and if the cost of land does not make these expectations feasible, there is no incentive for the developer to venture into thelow-budget home segment.

An Article About "LAND ECONOMICS"

LAND ECONOMICS
BACK GROUND

The complexity of urban life proves an obstacle to the application of economic analysis.  There is no satisfactory resource allocation model (with a manageable number of variables), which can determine the optimal combination of factors of production in an urban economy – an economy that changes both over time and in space.  Yet economic analysis can and must be applied to the many problems relating to urban land use.  The location of economic activity, spatial structure and urban growth, land values and town planning, the property market, the process of development, the techniques of investment analysis, betterment and land nationalization, the economics of transportation and the environment, the economics of housing, the condition of the construction industry – these and other areas provide the economist with the opportunity to apply his special powers of analysis and to investigate in specific contexts the productive and distributive processes of urbanized society.

As a background for the study of the demand for urban land, we shall need to consider the basic forces that underlie urban organization – the social, economic, and technical factors that have joined in the creation of cities and which are responsible for their growing importance in our national life.  We shall consider the city as an economic mechanism that has evolved in response to the ever changing economic needs of society in the production, consumption, and distribution of goods and services.  Not all the factors that effect the demand for real estate are economic, however, Social factors must also be considered; one should examine the city as a social complex in order to learn  the characteristics of the people who inhabit cities, and to study the urban way of life as it may affect the demand for land.     

THE ECONOMIC BASE

A clear understanding of the economic base of a particular city is a requisite to an understanding of the demand for the land located in it.  No prediction of the factors that influence the demand for the services of urban land can be made without forecasting the future trends in the basic economic activities of the area.  City planning, planning to meet the housing needs of the community, forecasting population trends, fore-telling the real estate market, appraising land values, predicting tax revenues – all and many other prognostications call for an analysis of the economic base of the area as a first step.

In general, the process of appraising the economic base of a community is a matter of gathering all available facts of economic significance, analyzing past experience and present status, and basing the forecast on an extension of recent trends as modified by those factors of change, which can be discerned.  More specifically this procedure involves a prediction of nature, volume, and stability of employment and income in the community, and a forecast of the characteristics of the population.

As per the master plan – 2015 vision document the following are the places identified for strengthening economic base of Bangalore:-

Develop the CBD

The development of the CBD is still in its embryonic stages in Bangalore’s centre:  M G Road to Richmond Road, precincts of Cunningham Road and Millers Road.  The CBD needs to be developed and strengthened and space must be reserved for the purpose.

Favour mixing of functions

Around the CBD, peri-central zones such as Shivajinagar, Kalasipalyam, and Kempapura Agrahara show a high level of mixing: artesian activitries, small industries and housing.  These areas play and important role in the economic organisation of the South, North and West zones.  Mixing between functions must be particularly encouraged in these areas and infrastructure strengthened for ensuring betterment in the quality of life.

Conduct urban renewal operations on urban wastelands

The industrial lands of Minerva Mills and Binny Mills pose a great land opportunity to launch a combined urban renewal project.  They offer the possibility of organizing a centrality of the masses that has artesian and commercial activities, equipment, green spaces and areas for leisure activities.

Redefine industrial areas

Traditionally industrial areas such as Peenya, Bommasandra Industrial Estate, Mysore Road and Magadi Road need redefining in terms of improvement of infrastructure, better management for commuting and integration of residential and commercial areas and anticipation of the industrial showdown in several zones (Old Madras Road…….)

Provision spaces for setting up of new industries

New industrial activities, linked with logistics areas, must be able to find dedicated space in existing and new industrial zones.

Favour the setting up of logistic and IT activities

Bangalore must be able to host new economic functions such as logistics and IT.  Some zones must be set aside as priority zones for logistic activities (North of Whitefield  and Yelahanka) and IT activities (South of Whitefield, connected to Hosur Road).

CHANGING FACTORS OF URBANISATION
The forces that lead to concentration of people in cities are in part physical and in part cultural, using this term in the broadest sense.  The physical consideration is the costs of friction.  I.e. the energy and time required to move people, goods and information from place to place.  Thus, with the increasing complexity of production and distribution, with the proliferation of artefacts and the infinite specialization of function, the more important (in the aggregate) becomes the physical proximity, or stated in the converse, the more costly becomes dispersion.  However, the impact of the basic relationship is modified by cultural forces; and because the cultural frame work of society is ever changing, so there are continual changes in the final direction and strength of the factors that affect city growth and structure.

THE URBAN WAY OF LIFE

It has been said that the most significant feature of urban society is its heterogeneity the social and economic diversification of individuals, groups, functions and institutions. Closely associated with heterogeneity and interdependent with it are the characteristics of large numbers, density, and mobility.  Some of the implications of these aspects of our urban culture will be briefly discussed.

The density of population that characterizes our urban places enforces close physical contracts between persons even though social contacts may be distant.  The frequent movements of large numbers result in frictions and irritations.  The process of living and working within a confined area in the absence of sentimental ties or group loyalties fosters a spirit of competition and mutual exploitation.  It encourages the physical separation of economic and social functions into specialized areas – residential, retail, industrial, recreational.  One of the significant consequences of the development of functional areas is the sometimes – wide separation of place of work from place of residence.

An Article about "TIPS ON WHERE TO INVEST AND HOW"

TIPS ON WHERE TO INVEST AND HOW

Man does not live only for food, cloth or shelter or for himself.  He has certain social responsibilities to provide for his family and also for himself in old age.  This naturally makes him to save some portion of earnings and invest in lucrative portfolios.  After the basic needs of food, cloth and shelter are fulfilled he strives to improve his standard of living and to enjoy the fruits of hard earned money.

Investment avenues are many.  But the investor should be prudent enough to select a proper area, which is safe and secured with assured reasonable returns. Earlier the bank deposits, stocks, mutual fund insurance policies and bullion were most opted. With increased business, globalisation  of economy have unfolded many more areas.  The investment has become very complex which has led to the emergent of specialized investment advisers.

Bank deposits, insurance policies, mutual funds have become unattractive because of low returns and failure of many companies. Stock market is unpredictable and volatile. Moreover, these investment avenues are for short-term which need close monitoring.  Further the quantum of investment is generally small.

In recent past real estate has emerged as a safe and high yielding investment opportunity. Investment in real estate is a long-term investment and needs considerable amount.  It is not only financial but also sentimental, emotional investment.

The liberlisation initiated by the Government, opened up the hitherto dormant Indian economy and many multinational companies set up their offices in major metros.  The improved pay pockets of vast middle class population offered as many investment routes. With a desire to own a roof over their head as early as possible, the migration of rural people to urban centers in search of assured income jobs, further expanded the real estate market.

However, as the demand exceeded supply, many fly by night operators appeared on the stage and indulged speculative and artificial price spiral, which resulted in crash of real estate market in later half of 1990.  But now the market has regained its potential. Only serious vendors and endusers are operating in the market.

The yield in the realty market has to be calculated on the capital invested and annual rental returns less property tax, income tax and annual maintenance charges.  This return varies according to the type of property, residential commercial office space.  In Bangalore the returns are about 8% for residential, 12% for office space and 15% for commercial space. They are certain determining factors, which play a crucial part in property investment.

Where to invest? In other  words the location. There is equal demand for all types of space in metropolitan cities and market trends rates are more transparent on account of competition and frequency of deals.  But smaller towns have potential of increased returns because of dearth of space. Local politics also plays its role in determining the returns in small towns.

Amount of investment: Investment in real estate needs higher amount and the minimum entry level will be in multiples of lakhs about 15 lakhs for residential and more for office and commercial space.

Time factor:  The sale of property requires long time for finding a suitable purchaser and complying with legal requirements, further the appreciation of capital value of the land is slow but certain and stable unlike in stocks and debentures.

Statutes Local Laws: The realty investment calls for more discretion and involves complicated process like title verification, land use according to local laws, floor area ratio restriction on sale for some period and many more unexpected laws, rules depending upon the political environment.

Tax factor: Uncertain tax rules, rates which vary every year need to be considered. Property tax is an annual commitment which is being increased every year by self-assessment or capital based assessment.  Rental income also attracts income tax to be paid annually; sale of the property attracts capital gains and purchase invites stamp duty and registration charges, property tax & stamp duty varies from state to state.

Type of property : As stated earlier the type of the property is also very important.  It may be residential, commercial or office space. The demand and supply position of each sector needs to be carefully examined.  Residential property calls for smaller investment.  Commercial and office space need higher investment

Type of returns:

Real estate sector offers two types of returns:

Recurring: This is monthly return in the form of rentals, or the returns on the lease amount invested bank, securities or in business.  The other type is return on sale of the property. The amount to be invested also depends on the mode of returns expected.  Generally leasing of property is attractive only for business people.  Lease amount does not attract interest.  Commercial property and office space yield high returns to the extent of 15% where as the residential property yield about 8%.

Risk Factor and Limitations of Legal Scrutiny

Tracing the title of property is most important step in purchasing the property which has to be done by an advocate well versed in property laws and well experienced.  The property laws are very complex and varies from state to state.  Further many times, age-old records need to be examined, which may not be available with the parties or even in jurisdictional offices.  Further legal scrutiny is based on the documents produced for verification. However, it is not the duty of the advocate to certify the genuineness of the documents from concerned departments. The honesty and integrity of the seller is very important. Certain hidden facts like pending cases, prior agreements, government notification of the property cannot be traced easily by verification of the documents. However, paper notification about purchase of property would help to unearth some claims.

Liquidity: Investment in real estate cannot be immediately converted to cash unlike stocks, deposits. However the property is most sought security for bank loans and rents may be securitised by obtaining loans from the Banks.
Maintenance charges: Property needs periodical maintenance, which involves considerable amount.

Landlord Tenancy problem: Most of Indian laws are pro tenant offering maximum protection to tenants but gradually they are being amended to strike fine balance.  But even now it takes much time to evict a tenant who has defaulted in payment of rents or who has violated the terms of agreement.

Political Environment:

Government has maximum control of real estate sector. Sale or purchase of agricultural land has many restrictions in Karnataka. Land use restrictions exist in many towns. The major source of revenue to the Government is from the immovable properties in the form of stamp duty and property tax. In case of acqusition by the government the compensation paid is very much less than the market value.

Price cycle:

It has been observed that the real estate has regular ups and downs where the prices go on increasing for some period and slide downwards for time.  But this cycle is long-term trend. Though the investment is huge, the investors needs to be patient to have good returns which takes long time.  It would be suicidual to expect appreciation in shortrun. Two components, the building and land move in opposite directions, the building value gets depreciated and land value gets appreciated.

Other factors:

Some factors remotely linked to this sector plays crucial part/role in determining the price. Introduction of one-way traffic construction of flyovers near the property decreases the value of the property.  Vaastu nowadays has become important. Another area of concern in want of information in property market.  The available information is too insufficient often contrasting. Even the transactions recorded in registrar’s office will not reveal the real price of the property as amounts other than what is mentioned in the documents might have involved.

Rental Income

The rental income from the properties is in the range of 0.5% to 1% p.m. on the investment. Apart from this income, the value of the property appreciates regularly. Whereas in case of bank deposits, the value of the money deposited gets eroded on account of inflation.  The investment in agriculture properties and farm houses are not remunerative. The income from the Agricultural property, is seasonal and depends on weather and climatic conditions. Further, the sale of the Agricultural properties has many restrictions. The farm house demands good maintenance which proves costly as at many times the income may not match the maintenance charges. The investment in real estate, is a better option.
   

    The real estate is only sector which yield better returns apart from capital appreciation, provided the investor is prudent and have taken enough precautions.

An Article about "Selection of the Property"

Selection  of  the  Property

The registration has commenced pertaining to all the properties consequent to the relaxation of the ban imposed on the registration of certain properties. The ban on the registration has created an awareness in the public not to invest on the property which is improper.  On the other hand, the recent demolition drive undertaken by BMP in Koramangala has created a sense of fear among the public to invest on the property in and around Bangalore. Walking on the road involves risk; nevertheless we cannot sit at home. Likewise, investing in the property also involves certain risk, but we have to take certain calculative risks which will help us to live in a dream house and also appreciation on our investment.

Unknown Area

No advocate can give clear cut assurance on the properties. There may be few transactions which cannot be traced from the documents produced for scrutiny, such as previous agreement entered into with somebody, pending court litigation between the family members or outsider, etc, which are the risky areas that cannot be traced by seeing the property documents. However, advertising public notice in the leading daily, having wide circulation in the area where the property is situated, will help to trace certain adverse claims, if any, before purchasing such property. However, such Public notice is only a precautionary measure and may not be binding on any one having interest in the property if the same is ignored or may have not seen the notice at all. If the same is noticed by anyone having any kind of interest over such property, then opportunity will be given to them to file the objection before the purchase of the property and subsequently, issues cropped pursuant to such objections could be sorted out by the Vendor. The purchaser can also back out from such transaction.

I herewith give certain guidelines as to where to invest and how to select the property in order to overcome any kind of ambiguity regarding purchase of any property.

Registration and Title

Even though all the properties can be registered by the concerned Sub-Registrar, mere registration would not convey the title. Registering officer will act only in the ministerial capacity and do not have power to asses the Genuineness  and marketable title of the property. Infact, the Sub-Registrars are more concerned with the stamp duty and registration charges. No one can give better title than what they themselves have, is the basic principle of the Transfer of Property Act. A vendor having marketable title can lawfully convey the property and  register in the concerned Sub-Registrar in favour of the purchaser and if the vendor has defective title, conveying the same and getting it registered will not perfect his title as there will be a lot of confusion as to whether the property is legally valid or not.

Clear Marketable title

Before purchasing the property, marketable title, Genuineness of the document, enforceability of the title has to be scrutinized along with a thorough verification as to whether the relevant provision of the laws and other rules and regulations of the revenue authorities has been duly complied. Origin of the property, flow of the title and present status has to be verified with the help of an advocate, who is having experience on such matters.

B.D.A.Sites

Bangalore Development Authority, previously known as City Improvement Trust Board, allotted sites having the perfect title, compared with another title. BDA, being a statutory body, has got its own procedure envisaged in the BDA ACT in acquiring the lands from the private parties, formation of layouts along with all infrastructure like power, water and roads. Generally, impetus is given for providing civil amenities and width of the roads as per the town planning ACT. Layouts already developed has been provided with all the facilities immediately, for which we will have to pay moderate rate. Likewise, Co-operative societies layout, private layouts approved by BDA are governed by the rules and regulations of the BDA only. However, purchasing such property is advisable after scrutiny of the title thoroughly.

BMP Sites

A property falling under the BMP Area are generally old properties. Vacant properties are very few. 

Generally  ready built houses or old houses are available for sale. Title of the property is required to be traced from the origin with successive deeds of transfer, computerized Khata and computerized Khata extract to be checked up.

If required, city survey map and Building sanction plan has to be verified.  Sometimes, larger extent of properties would be divided into smaller portions and in such case, only certified copies of the title deeds would be available. Old 7 CMC area, 1 CMC  area including 111 villages  included in the BBMP area from 16/01/2007. The newly added BBPM  area do  not have proper infrastructure facilities such as Road,  water, sewerage line etc.,  most of these  sites and houses do not have A Khatha or Building Plan Approved by  the competent authority and purchasing this type of property having high risk.
   
BMRDA Approved Sites

Recently, lot of layouts approved by BMRDA i.e., Anekal Planning Authority(APA), Nelamangal Planning Authority(NPA), Magadi Planning Authority (MPA), Hosakote Planning Authority(HPA), Kanakapura Planning Authority(HPA), Bangalore International Airport Area Planning Authority [BIAAPA] are coming up in the outskirts of Bangalore, with  proper planning and development.  This is due to the recent ban on registration of such properties without BMRDA Release Letter.

Recently, BMRDA has changed its rules and regulations, wherein only 60% of the sites would be released at the time of approving layout plan, while remaining 40% of the sites will be released after completion of the entire layout.

Accordingly, the Sub-Registrar refuses to register such sites without the release letter. So it became mandatory on the part of the developers to develop the entire layout and get the release order of the balance 40% of the sites. After the relaxation of the ban on registration, Sub-Registrar is registering BMRDA sites without release order, which, infact has affected the developmental activities of such layouts. 

Few of the promoters are selling the sites without providing basic facilities with an assurance to develop the same, but fail to do the same.

The government has to take initiative and should make it mandatory to submit order of release of sites at the time of registering BMRDA approved sites, in order to safeguard the interest of such purchasers.

Gramathana Sites

These are gramathana sites, originally available in Village Panchayat areas, and which are few in number.

They can be distinguished from Kaneshumari number, assigned to them. The agricultural lands have survey numbers. In such properties, it is necessary to examine village records along with Form No.9 and 10 which confirm that the particular property is original Gramathana site or not. 

But many village Panchayats issue form No.9 and 10, though they are not Gramathana sites. 

Many such sites fall in green area belt areas, where construction of residential building is restricted. Extra caution is necessary while buying Gramathana Sites.

Revenue Sites

These are the sites formed in an agricultural land. Unless it is converted for non-agricultural residential purpose, it remains as agricultural land. Formation of layouts is not permitted on agricultural land. Further, layouts need the approval from BDA or BMRDA.

The revenue records such as Pahani and mutations of these lands remain in the name of the original owner even after it is purchased by others. It is not advisable to purchase the Revenue sites.

Advent of Apartments

The rapid growth of demand for Apartments in Bangalore, within a year, has totally changed, wherein, average rate of a standard apartment per sqft of  Rs.3000/- has now enhanced to present rate of an average standard apartment attaching to the city area at nearly Rs.4000/- per sqft. 

Now a days people prefer to live in the apartment concept because of the safety, social life and facilities available there.

Increase in the land cost, increase in the construction material and construction labour cost, government levies like service tax, sales tax, stamp duty and registration charge have also contributed for the tremendous growth of the apartments in the recent times..

RESTRICTIONS ON TRANSFER OF IMMOVABLE PROPERTY

RESTRICTIONS ON TRANSFER OF IMMOVABLE PROPERTY

Among various types of ownerships, the ownership of the immovable property is very important.  The ownership of the immovable property is classified into free hold and lease hold.  Free hold is absolute ownership, which means the owner has full freedom to deal with the property as he likes without any restrictions.
   
The three important rights enjoyed by owner of property are: 1. Right to use, 2) Right to destroy and Right to transfer:

No Fundamental Right:

The important right is the right to transfer:  It may be noted that, this right to transfer is not absolute right, but it is subject to restrictions imposed by the law.  In this regard the first and foremost important restriction flows from the constitution of India.  Before 44th amendment to the Indian Constitution, Right to property was fundamental right U/A 31 dealing with Right to own property and U/A 19 (1) (f) dealing with right to dispose and enjoy property.  These two rights were protected by Art 13 (1) (2) in the Indian Constitution, which provided that any law including rules regulations, notifications, ordinance etc., to the extent they violate fundamental right are void.

This protection has come to an end by 44th Amendment, deleting Right to property in the chapter of Fundamental rights and placing it in the ordinary rights chapter i.e., Art 300 A.  Thus the right to property more so of immovable property is no more a fundamental right.

Agricultural land:

Various States have enacted laws, imposing restrictions on the rights of the owner of the property.  The government of Karnataka has prescribed certain ceiling on holding of the agricultural property by persons, companies, societies etc., under Karnataka land Reforms Act, 1961.  The limit prescribed depends upon the type of land.  If the holdings are in excess of prescribe limits, the excess holdings will vest with the government of Karnataka.  The Karnataka Land Reforms generally prohibits transfer of agricultural property to Non Agriculturists and Persons having source of income more than Rs. 2 lakh (average for last 5 year income) from non-agricultural sources.

Though agricultural property cannot be transferred to non-agriculturists.  Karnataka land Revenue Act provides for conversion of agricultural land to non-agricultural land such converted land can be transferred to non-agriculturists.


Land acquisition:

There is another important legislation i.e., Land Acquisition Act, 1898.  Which provides for acquisition of property for public purpose and for the purpose of company. Once the government issues preliminary notification for the acquisition of such land, whether agricultural or non-agricultural, such property cannot be transferred to any other person, here again authorities competent to acquire property and Central or State Government and other government agencies like BDA, KIDB, KHB etc.,

Zonal regulation:

The comprehensive development plan has categorized the areas into various zones like residential, commercial, industrial, green belt area etc., and has also prescribed the various activities that can be carried out in such zones.  The owners have to comply with such prescribed area, permission from planning authorities required for any change.  In green belt area only agricultural and allied activities are permitted and the conversion of land is allowed. 

PTCL Act:

The important social welfare Act with regard to Transfer of property is “The Karnataka SC & ST (PTCL) Act, 1978, i.e., the preamble of the Act provides that “An Act to provide for the prohibition of transfer of certain lands granted by the government to persons belonging to the scheduled castes and scheduled tribes in the state, which means any land granted to the landless agricultural laborers belonging to scheduled castes and scheduled tribes cannot be purchased without the permission of Government.  Any one who purchases such property will not get clear and marketable title; such property will be acquired by Government and returned to original owner.”

These restrictions on the transfer of property are social in nature i.e., to give effect to importance Directive principle of State policy provided u/A 39(b) & 48 A of the Indian Constitution.  Art 39(b) of the Indian Constitution provides that:
1)    That the ownership and control of the material resources of the community are so distributed as best to sub serve the common good.  Article 48 A in the Indian constitution provides that.

2)    The state shall endeavor to protect and improve the environment and to safeguard the forests and wild life of the country.

Transfer of Property Act
In the Transfer of property Act there are certain partial restrictions on the transfer of property.

Sec. 52 – Doctrine of  lispendens  which provides that if any suit relating to immovable property is pending in competent court and during such pendency if, property is transferred such transfer is subject to decision given by the court.

Sec. 53 – which deals with fraudulent transfer, prohibits of transfer of property if the purpose and intention behind such transfer to defraud or delay the creditors of the transferor:

But Sec 10 in the T.P. Act provides that any condition imposed by Transferor to Transferee absolutely from parting with or disposing of his interest in the property is void.  This provision facilitates transfer of property by transfer without any restrictions.  However, the act allows temporary restrictions.  Various development authorities, societies restrict alienation for some period.  This freedom of transferee can be curtailed in case of lease for the benefit of lessor, property transferred to woman, for the benefit of woman not belonging to Hindu, Mohammedan or Buddhist so that she shall not have power during her marriage to transfer or charge the  same  or her beneficial interest thereon.

In T.P. Act very important restriction is transfer of property to unborn person, under section 5, where the transfer of property is between living persons only.  But Sec 13 provides for transfer of property to some other person for the benefit of such unborn person.
   
Purpose of imposing restrictions on Transfer of property in the Transfer of property Act, 1882 are for: To protect the interests of creditors, To protect the interest of persons having better title to the property.  To prevent property being removed from trade and commerce.  To sum up, broadly there are two kinds of restrictions on the transfer of property.  They are: 1. Restrictions to protect the society as a whole, (2) Restrictions to protect the interest of transferor creditors and people having better title.

The other restrictions are: Sect, 48A: Occupant of land under Karnataka land Reforms Act 1961, Sec: 77: Grantee of land under Karnataka Land Reforms Act 1961, Sec: 100: Occupancy not transferable without sanction of prescribed authority Karnataka Land Revenue Act 1961.

Purchase of property NRI / POI:

Lastly foreign national of non-Indian Origin resident outside India cannot purchase any immovable property in India.  Whereas Non resident Indians can purchase residential and commercial properties without any restriction on ceiling on the number of properties.  The only restriction on the non resident Indians is they cannot purchase agricultural, Farm / plantation property.  In this regard Non-resident of Indians need not have to send any document or statement to Reserve Bank of India, government of India or to any bank before, during or after such purchase.  This freedom is available to all non-residents who are either citizens of India (i.e., holding Indian Passports) or who are persons of Indian Origin.  This freedom is available for buying residential or commercial property.

Persons of Indian Origin means persons one who hold an Indian Passport any time earlier or whose father or grandfather was a citizen of India.

An Article about "RELAXATION ON BAN WILL HELP INDUSTRY"

RELAXATION ON   BAN WILL HELP INDUSTRY

Registration of all the properties has commenced in all the sub-registrar offices again by virtue of the judgment delivered by the High Court of Karnataka.

Government of Karnataka issued a notification on 23/04/2005 thereby classifying certain documents as opposed to public policy, which includes sites on agricultural lands not converted, properties coming under BMP revenue area, CMC area having Katha, Betterment and Tax paid receipts and sites not formed without obtaining approved layout plan from the competent authority. Further, one more notification was issued by the Joint Secretary to Government of Karnataka, Department of Revenue bearing No.RD 174 MUNOMU 2005 dated 23/08/2005 in the guise of some frequently asked questions.

The above said two notifications were challenged by one Sri.Pavanesh before the High Court of Karnataka, Bangalore, by initiating Public Interest Litigation, seeking quashing of the above two notifications, in WP No.24309/2005.

The Petitioner contended that the Impugned Notifications  are baseless, illegal and issued under the arbitrary state action for the reason that said notifications have classified the registration of all the properties coming under the jurisdiction of City Corporation established under the Karnataka Municipal Corporations Act or Municipalities under the Karnataka Municipalities Act or within the jurisdiction of Grama and Taluk Panchayat as opposed to public policy, which affects the statutory powers envisaged under the statutes and any such declaration can be done only by the Court of Law.

Deemed Conversion:
   
The petitioner has relied on the decision delivered in the case including Special Deputy Commissioner Vs Narayanappa, reported in ILR 1988 Kar 1398, which has declared that the jurisdiction of the Deputy Commissioner to convert the land for non-agricultural purpose is ousted in respect of the lands falling within the area of the Outline Development Plan or CDP. Further in the case of BDA Vs Vishwa Bharathi House Building Co-operative Society Limited, reported in ILR 1991 Kar 4401, it is held that lands which come within the jurisdiction of the Corporation are deemed to be converted for that purpose. In another case, reported in ILR 2005 Kar 60, the Division Bench has held that the Land Revenue Act would cease to be applicable to the lands which come within the jurisdiction of the Corporation.

In this context, the Petitioner has contended that various layouts in the State of Karnataka were formed over hundred years ago and now insisting for obtaining conversion of such lands does not arise at all. On these grounds, the said notifications were termed as the one issued without application of mind and only for extraneous considerations.

Government contention

On the other hand, the Government, substantiating its stand over the impugned notifications, strongly contended that the Government has passed the above notifications under section 22-A of the Registration Act, which empowers the Government to declare the registration of any document or class of documents as opposed to public policy by notification in official Gazette. Further, the public policy of the State cannot be questioned if the same is founded on data, statistics, factual position and in furtherance of public interest and that the notifications were issued only to stop large scale violation of the special statutes resulting in a chaotic situation and disorderly growth of the cities and towns and affecting the public interest, in as much as poor and hapless aspirants of sites being victimized and opposed the said petition as hopelessly misconceived.

Judgement

After hearing the arguments, the High Court considered the law laid down by Apex Court, wherein, it was held that the Executive, acting upon the powers vested on them under section 22-A of the Registration Act, cannot sub delegate the powers which would control the transactions which fall out of its scope. The Court further held that the essential functions of the legislature cannot be delegated and that the subordinate legislation, which is not backed up by any statutory guideline under the substantive law and opposed to the enforcement of a legal right, would be invalid. It is also held by the Apex Court that so long as the statute itself is not amended, any notification issued by the Government prohibiting few of the documents from registration, is not sustainable. The High Court, relying upon the ratio laid down in the case mentioned above, held that a transaction between two persons capable of entering into a contract, which does not contravene any of the statute would be valid in law and such transactions cannot be illegal. Consequently, the impugned notifications were quashed.
   
Revenue loss to the Govt

Consequent to the issuance of the above said notifications, the Government has suffered huge loss of revenue, wherein direct loss to the department by way of stamp duty and registration charges, is estimated nearly 600 crores in addition to indirect income which will be multiples of 600 crores. For the investors who plan to invest in Karnataka to start their business will have to firstly acquire the property and subsequently have to construct the building which requires cement, steel and other construction materials apart from labour skill, which again attracts sales tax, service tax, excise duty and cess, which are some of the sources of revenue to the government. 

Due to issuance of the said notifications, various projects have been dropped since the investors were not able to acquire the property for the development in Bangalore and Karnataka. Infact the investors are now avoiding to invest and are not ready to take any kind of risk to invest in Karnataka due to constant changes in the rules by way of circular and the Government is not taking proper decision on such important aspects. Various developers and industrialist who had planned to start their project earlier to issuance of the said notifications have been forced to shift their place of business to other States. 

Public problem
   
Because of the ban on the registration, the public incurred lot of inconvenience. The purchaser, who had already paid advance sale consideration, could not complete the transactions due to the ban. Further, the Banks are reluctant to release money due to the ban on registrations. The vendors who want to sell the property for urgent necessity, such as to meet their medical, marriage expenses or expenses incurred for construction of alternative house, had to suffer. The public also had to suffer since the demand for land was increasing along with the prices due to scarcity of land and the people belonging to middle class could not cope up with the mounting prices made them owning a house as an unfulfilled dream.

Powers of the Registering Officers

The Registering Officers act in the ministerial capacity and have no power to decide the title of the executor.  The Sub-Registrar is entrusted with a duty of registering the documents in accordance with the provision of the act and do not have power to probe into the genuiness or legal aspects of the documents presented before him. If the documents are bogus or false, the party affected by it will have the right to initiate proceedings in the court of law, which is the competent authority to decide and declare the validity of the title.

Approved layouts

Of course the said ban on registrations has enlightened the public about the legal impediments involved in buying the sites formed in agricultural or revenue or converted private layout without approval or Residential sites formed in the layout not approved by BDA or BMRDA. After this notification, public has starting thinking twice to purchase any revenue land or Gramathana land, which is available as form no.9 and 10 Village Panchayat Khatha and also apartment constructed on the property  approved by the Village Panchayat.

Purchaser duty

Generally, the purchasers are investing the money for owning a property once in their lifetime from the money saved during their life time or borrow from the financial institutions. So abundant caution will have to be  exercised by purchasers while purchasing the property since valid and marketable title of the property is very important, which can be verified with the help of an Advocate, having very good experience in such matters.

Selection of the property

No one can give a better title than what they themselves have. This is the basic principle envisaged in Transfer of Property Act. The vendor having a valid title can transfer his title by way of sale deed and register in the office of Sub-Registrar in favour of the purchaser. Even if the document is registered, the vendor who do not have marketable title cannot transfer proper title.

Generally, site allotted by BDA, KHB is the safest property to invest. However, BMP revenue jurisdiction properties, converted land in the municipal area having proper Khatha and tax paid receipt is also comparatively good properties. Nevertheless, in any such properties, title should be traced with the proper care.

Revenue sites formed in the agricultural land without conversion or site formed in the converted land without proper sanction of the layout is a dangerous area to invest. 

While buying Flats, it is advisable for the purchaser should select the property which comes within the limits of BMP, BDA Layouts, CMC areas with approval of the BDA or BMP or CMC. The apartments coming on the revenue belt with the sanction of the village Panchayat is not advisable to buy. Further, it is advisable for the purchasers to probe into the previous history of the promoter in the field of construction in person and then to decide, in addition to tracing the title of the property.