An Article about "Franking of Stamp Papers"

Franking of Stamp Papers

Common man needs small denomination of the stamp papers for various purposes like affidavit, Rental agreements, agreements, undertaking, power of attorney, bonds, memorandum of understanding etc. Public needs stamp duty of the denomination of  Rs20, 50,100 & 200 for  executing  affidavits, rental agreement,  Indemnity Bonds and Sale  Agreement  respectively . These are all the common requirement of stamp duties for giving legal sanction to any kind of documents. Now-a-days  the government departments are insisting for obtaining affidavits and indemnity bond  for various purposes.

Non-availability

Previously, department of stamp duty was appointing the authorized stamp vendors to sell the stamp papers for the above said documentation purpose. It was like a public fare price shops, wherein such stamp papers were easily available not only in all the important places but also in a very remote and interior villages. Infact, Stamp papers were available even in the late night also. Any understanding between the parties will be reduced in writing on the stamp paper and would be signed on that, as the same will be binding on both the parties. After the Telgi scam, from 01/04/2003, using stamp papers for the purpose of any documentation has been totally prohibited in Karnataka.

S.B.M.paper

After the amendment of Section 10A of the Karnataka Stamp Act, 1957, provision has been made for payment of stamp duty by DD/Pay Order or Bankers Cheque, drawn in favour of the concerned Sub-Registrar office for sale deeds and other documents. Obtaining stamp papers of  small denomination, only two option are available. One is, franking the stamp paper  in the concerned sub-registrar office and another one is purchasing the document  sheet from the state bank of Mysore. Unfortunately, both the modes of obtaining stamp papers are very tedious since it involves lot of  procedure and formalities. Further, the said facility is avaible to the public only for  5 to 6 hours every day.  Infact only in few  branches of State bank of Mysore the facility of  issuing stamp papers are available. In such case, public has  to fill up the challan and  mention the denomination for which stamp paper is required and accordingly  has to pay the requisite commission charges on such amount and later has to stand on a very long queue. So getting a stamp paper in SBM is a time consuming process. Again, such authorized branches of State bank of Mysore are not much interested in issuing this stamp paper rather they are concentrating more on their banking business. Infact, among those authorised branches also, only one or two banks only will issue the stamp paper on that particular date and priority will be given   for their regular customers of the said Bank.

Franking procedure

The matter has to be typed in the white paper or document sheet and has to be submitted for franking along with the application, but without date and signature of the parties to the said document. This facility is available in certain particular sub registrar offices only such as Jayanagar, Gandhinagar, Basavanagudi, Shivajinagar, Rajajinagar, Kengari, Anekal Sub registrar offices, this facility is available and the franking time is only  between 10:30 A.M. to 3:30 P.M, excluding the lunch hour. Rules and regulations varies from one sub-registrar office to the other. If the party produces the documents for franking, the concerned sub-registrar may refuse by various reasons. For example, if a person made a lease agreement more than 11 months, or that the agreement involves advance amount or if GPA is executed in favour of person other than his/her family member then it may be refused due to insufficient stamp duty. However, it is not a duty of the sub-registrar where the franking of the stamp duty is done to ascertain the stamp duty, but it is by the District Registrar or the Court which should decide the requisite stamp duty on any document at the time of presenting the documents.

Fake Papers

For the past two years, small denomination stamp papers were available easily everywhere. After abolition of the stamp papers, government has not taken any initiative to get the small denomination of the small papers by easy method, which has forced the public to buy the paper in the easiest way in the Taluk office and sub registrar offices entrance, which has resulted in the creation of lot of (small Telgis). Infact, two months ago, City Crime Branch (CCB) raided few of the Sub-registrar offices and Taluk Office and have booked 38 illegal franking, out of which 21 cases in City Civil Court premises and the rest at Mayo Hall, Yelahanka, Peenya, Yeshwanthpur, Koramangala and Jayanagar and arrested nearly 47 agents for having involved in the circulation of fake stamp papers and franking ink and pads, seals and franked blank sheets were also seized . These fake papers are either franked from their own franking machineries or from the original stamp papers, they are using color zerox. People should approach the  authorised Sub Registrar offices to get the stamp paper  embossed on the typed text before signature.

Franking machine 

The Franking Machines shall be used for franking impression of Stamps on all kinds of instruments on which Stamp duty is payable under the provisions of Indian Stamps Act 1899 and the Karnataka Stamp Act, 1957 and the rules made there under.

Usage of Franking Machine by the Proper Officer

•    Franking Machines shall be installed before the Proper Officer, at the office of the Superintendent of Stamps, Bangalore, Offices of the District Registrar and Offices of the Sub-Registrars at Gandhi Nagar, Jayanagar, Shivajinagar, Basavanagude, Rajajinagar and Kengeri or  in any other offices as may be authorized by the Chief Controlling Revenue Authority in Karnataka for impressing Stamps indicating the payment of stamps duty on the instrument chargeable with duty and the operation of the same shall be under strict vigilance and supervision of the Proper Officer.

•    Before the machine is put to use, the same shall be authorized loaded and sealed by Superintendent of Stamps or District Registrar, Assistant Commissioner of Stamps or such other officer authorized by Chief Controlling Revenue Authority and shall maintain Register in Form No.1 regarding loading and reloading and Form No.2 regarding return of the same and shall be scrutinized every month. In case of  periodical loading of the machine, sanction from District Registrar is necessary if the same is being carried out by the officer other that those authorized to do such act, which shall be entered in Form No.3.

•   The access code to the numeric of the Franking Machines shall be exclusively with the Superintendent of Stamps or District Registrar who shall be responsible for non disclosure, thereof to any person and who shall maintain a separate register in respect of each loading / reloading / incrementing of the amount.

•    The Proper Officer shall ensure that the seals are not tampered with, in any way by any person or that machine is not handled by any un-authorized persons.

•    The Proper Officer shall be responsible for the custody of the machine.  A register in Form No.4, shall be maintained in which the meter reading are recorded separately, both at the commencement of the day and at the close of the day.  The difference between the said readings shall be the total amount collected in respect of impressions franked.

•    The parties desirous of having stamps impressed on all kinds of instruments  shall make an application in Form No.5 along with the instrument and value of Stamps to be impressed, by Challan or Cash or Pay Order or Bankers Cheque or Demand Draft to the Proper Officer and on the receipt of the same, requisite amount of stamp duty will be embossed on the instrument and thereafter the Proper Officer shall affix his signature in the space provided on the impressed stamps, which shall be serially numbered and the particulars are to be entered in Form No.6.

•    The authorized user shall at all reasonable times allow authorized office or the authorizing authority or the District Registrar to inspect the machine and collect records without notice.

•    Franking or impressing of Stamp may be allowed up to any amount and such amount, as far as possible, has to be made on the right top corner of the first page of the instrument itself and has to be clear and in bright red colour only. Incase of any mistake or wrong in the amount impressed then that impression shall be torn from the instrument and pasted in the register of daily posting and shall be authenticated by the authorized user or proper officer.  At the time of resetting, set off equal to the amount of wrong impression shall be given.

Thus, non-availability of small denomination stamp papers has forced the public either to approach the agents near court complex or sub-registrar office entrance or to enter into agreements in white paper, without paying requisite stamp duty, which, in turn, leads to lot of litigations. In order to solve this problem, the Department of Stamps and Registration has to provide sufficient modes for availing stamp papers of small denominations, which also generates more income for the Government.

Property Advocates in Bangalore

An Article Regarding "DIVISION OF JOINT HINDU FAMILY PROPERTY"

DIVISION OF JOINT HINDU FAMILY PROPERTY

Hindu Joint Family most frequently referred in property matters, as Hindu Undivided Family (H.U.F) is a unique institution of Hindus more particularly of Mithakshara school.  The ancient Hindu Law was not codified but practice was handed over from generation to generation and Manu Smrithi is the most ancient codified law available. The origin of Hindu law may be traced to Sruthi which consists of four Vedas and commentaries, Smrithi's, Customs as practiced for long period, case laws, and later on various legislative enactments.

The Hindu law has two major schools of thought 1.Mithakshara 2.Dayabhaga.  Mithakshara law is practised through out India except West Bengal and some parts of eastern India.  Under Mithakshara law the members of the Hindu Joint family acquires interest in the family property by birth which has led to formation of Joint Hindu Family.

In Dayabhaga the right to family property is acquired only through surviorship. 

Originally Hindu Succession Act 1956 did not recognise and grant full property rights to female members of joint family or co-parcenary property.  Various amendments were brought by the different states to the Hindu Succession Act; Andhra Pradesh, Tamilnadu, Maharashtra, Kerala, and Karnataka. The amendment which grants equal property rights to female members of Coparcenary property in Karnataka has come into effect from 30.07.1994.

Hindu Joint Families are gradually becoming obsolete and Government   of Kerala, by amendment dated 01.12.1976 has abolished the Joint Hindu Family.  The institution of Hindu Joint Family, though they are obsolete, the devolution of property mostly have their origin in joint families as such it is necessary to understand what constitutes a Joint Hindu Family.

Joint Hindu Family

A Joint Hindu Family has a common male ancestor and consists of lineal male descendants includes wife or wives, widows and unmarried daughters of such common male descendants.  Thus a single member cannot constitute a Hindu Joint Family.  Joint Hindu Families may be big which contains many small families of different branches, but with a common male ancestor.  It may also contain a single male member and his wife and daughters. Though a single male member cannot constitute a joint family he may on marriage both husband and wife constitutes the Joint family.

Co-parcenary

Co-parcenary is different from Joint Hindu Family, which is much narrower than joint family.  Joint family may consist of any number of generations but co-parcenary is limited to the father and three lineal descendants children, grand children and great grand children.  These generations acquire the interest in the family property by birth.

The property owned by Joint Hindu Family is a co-parcenary property.  The properties inherited from father, grandfather and great grand father also constitutes co-parcenary property.  But a property inherited from maternal grandfather is held not to be a ancestral / co-parcenary property.  A distinction has to be made between co-parcenary property and self acquired property.  Property may be acquired through inheritance, partition, gift and other modes.  The nature of the title depends upon how the property was acquired.  

Partition : The ancient inherited property may be shared among legal heirs on partition.  Such acquired property will be a joint family property to his lineal descendents like his children, grand children, great grand children, but in case of other relations it will be his separate self acquired property.

Jointly acquired property

The members of coparcenary may jointly acquire the property.  The devolution of such property depends upon the intention of the purchasers.  Generally it will be a joint family property unless contrary intention of owning it as co-owners or partners is intended and explicitly mentioned in documents.

Exchange

If a joint family property is exchanged to acquire another property, such acquired property is joint family property.

Gift

Gift is recognised mode of acquiring the property and the property acquired through gift is the separate property of the donee and does not constitute a part of Joint Hindu Property.

Self acquired property thrown into Joint Family Property

The co-parcener might have acquired properties out of his own income which is his separate property.  Such coparcener may throw his separate self acquired property into joint stock of joint family property, which becomes the property of Joint Hindu Family.  But the intention must be clear.  The mere intention that the numbers of Joint Hindu Family are entitled to enjoy the benefits of separate property may not be enough evidence to include the separate property in Joint Hindu Family properties.

Income from joint family property

All the incomes arising from the joint family properties are joint family property income.  Any properties purchased from the income of joint families is also joint family property.

Separate property

Any co-parcener, member of Joint Hindu family may acquire property out of his own self earned funds without any detriment to Joint Family Property and such property is a separate property different from Joint family property. 

Rights of Co-parceners

Every co-parcenary has right to seek partition of the Joint Hindu Property and assert his rights on his share.  The legal heirs like son, daughters have equal share in the property.  If any of the sons has predeceased, his children jointly acquire the share of predeceased son.

Every member of coparcenary has right to be maintained by Joint family funds.

As already stated co-parcenary is different and much narrower than Joint Hindu Family.  Members of Joint Hindu Family other than co-parceners do not have any rights in the co-parcenary property, but have rights of maintenance only.  On the death of any member of co-parcenary, next degree of generation becomes member of co-parcenary.

Property Advocates in Bangalore

An Article Regarding "REAL ESTATE is still preferred AS a good INVESTMENT option"

REAL ESTATE is still preferred AS a good INVESTMENT option

 

The real estate sector plays a big role in India's economy. virtually five-hitter of the country's gross domestic product (GDP) is contributed by the housing sector. realty in Asian nation has been characterised by an increasing presence of an oversized range of public corporations, at the side of the gap from this sector to foreign direct investment (FDI) and personal equity corporations. This has magnified the discipline and responsibility of companies homes enterprise large-scale realty developments. Indians have an innate propensity to possess homes. This, with rising financial gain levels following India's rising, has resulted in an exceedingly extraordinary increase within the demand for homes.

The country has started viewing property as a most popular investment choice, as long as returns ar pegged between St Martin's Day and V-J Day, compared with bank deposits, that rarely provide returns over 100% a year. costs of homes, therefore, have magnified at a gentle pace within the past decade.

According to Dun and Bradstreet corporation., a supplier of credit data on businesses and companies, the full worth of realty development in Asian nation was calculable to be around Rs.67,480/- crores, growing at an annual pace of30%. This growth is fuelled by the expansion in real property development in organized retail, followed by housing and knowledge technology and knowledge technology-enabled services.

In recent times, realty has been seeing a plunge in demand with retail shying faraway from usuriously priced areas or paying high rentals. Reduced client defrayal has additionally translated into a retail holdup. several corporations have additionally determined to relocate from high to lower value locations, resulting in vacancies growing in retail and workplace house.

Interestingly, a careful check out the performance of the world reveals that the pace of activity has been shifting to smaller cities. many reasons might cause this shift. First, speculative investments in realestate, that are for the most part confined to the metros, resulted in larger value volatility in these cities.

Secondly, the high value of realty in giant cities has caused variety of offshore corporations fixing operations in Asian nation to expand into smaller cities, leading to a considerable increase in demand.

Thirdly, builders and developers have chiefly targeted on high-end housing comes in giant cities. The recent economic holdup has meant giant stock of unsold inventory. They have, therefore, shifted specialize in developing comes aimed toward medium-income, lower-middle-class households. Lastly, the special economic zone policy has additionally resulted in an exceedingly shift of activity from giant to smaller cities.

So, wherever ar we tend to heading? the arrival of the personal sector in realty and therefore the government's proposal to supply financial  concessions and making an facultative surroundings for development have LED to rising in camera investment in housing, with the emergence of developers chiefly in metropolitan centres and alternative aggressive cities.

The growth has been fuelled by rising business opportunities in new and rising enterprises, increasing financial gain levels, low interest rates, employment generation and demographic changes.

The real estate market has additionally been boosted by a proposal to allow 100% FDI within the sector. Also, a big issue that drove the expansion of the housing market was simple availableness of bank finance at reasonable interest rates.

Finally, it's vital for policymakers to be open-eyed and track the pace and political economy driving the evolution of the world. There ought to be adequate superintendence to stop reckless credit growth to fund its growth.

India's favourable sociology, low mortgage penetration, falling interest rates and current infrastructure demand can keep the retail realty downswing from being extended. the basics of {the sector|the world|the arna} are smart and its growth ought to continue within the predictable future.

Property Advocates in Bangalore

An Article about "BY OVER STAYING A LICENSEE CANNOT CLAIM TENANCY RIGHTS"

BY OVER STAYING A LICENSEE CANNOT CLAIM TENANCY RIGHTS
 

With the passage of time, the system of giving properties on leave and license basis in Maharashtra is taking its roots, but still a good number of the property owners are apprehensive because they are not sure that they would get back possession of the properties on the expiry of the term. However, in view of the following judicial pronouncement, such fear seems unfounded, provided legal requirements are complied with.

One Shri Mohd. Hussain Furniture Walla, (Licensor) as the owner of Flat No. 51, in Victoria Apartments, St. Alexius Road, Bandra, Mumbai, gave his premises on leave and license basis, as per the Agreement dated 25.03.2003, for a period of 22 months to one Ms. Pari-neeta Choudhary on a monthly license fee of Rs.18,000. 

In addition, an additional agreement was also executed between the parties for payment of charges at Rs.10,000 per month in respect of furniture and fixtures in the said premises. The term of the license expired in January 2005 and the licensee continued to occupy the said premises even thereafter and licensor accepted the monthly license fee and the additional charges. Only on to" December 2005, he moved a petition before the Competent Authority, who, besides ordering eviction of the licensee, also directed her to pay the damages at Rs. 56,000/- per month from 16th January 2005 till handing over possession of the licensed premises to the lesser.

This decision was challenged by way of revision u/s 44 of the Maharashtra Rent Control Act by the licensee but the same was dismissed and the order of the Competent Authority was upheld.

Aggrieved by this orderthe licensee filed a Writ Petition No.2276 of 2008 before the Hon' ble Bombay High Court under Article 227 of the Constitution of India. The matter came up for hearing before Hon'ble Mr. Justice A. M. Khanwilkar on the 9th September 2008, when the licensee pleaded that not issuing legal notice to her and continuing to accept the monthly license fee, was indicative of the fact that the licensee has become the tenant in respect of the licensed premises. But this argument was not accepted by the Hon'ble High Court which observed that the fact of acceptance of the monthly compensation by itself would not to be sufficient to positively hold that the relationship of the parties that of licensor and licensee was converted into one of landlord and tenant and the fact that licensee instituted the proceedings before the Competent Authority, almost after 11 months from expiry of the license period, would again not by itself indicate that he has waived his statutory right of eviction of the petitioner from the suit premises because there is legal presumption uls 24 of the Act about conclusiveness of the contents of the leave and license agreement. It would merely indicate that the licensor allowed the licensee to overstay the license period and nothing more and the relationship would still remain of licensor and licensee.

The Hon'ble High Court has, therefore, held that the arrangement between the parties was purely one of the leave and license and the relationship created between them on account of the said transaction was that of the licensor and licensee and in view of the legal presumption u/s 24 of the Act, it would necessarily follow that the licensee is obliged to vacate the premises on the expiry of the license period in January, 2005.

On the question of payment of damages from 16th January 2005, the Hon'ble High Court did not agree with the order of the Competent Authority, as upheld in the revision.

The Hon'ble High Court observed that the licensor did not call upon the licensee to vacate the suit premises nor informed her that she would be liable to pay damages for continuing possession and he filed the eviction proceedings only 16th December 2005. Therefore, the licensor would be entitled for the damages from the licensee at double the rate of license fee fixed in the Agreement of License only from 16th December 2005, when he initiated the proceedings.

As regards the quantum of the damages, again the Hon'ble High Court did not agree with the order of the Competent Authority, as upheld in revision and observed that the licenseagreement provided for the monthly licensee fee @ Rs. 18,0001- only and the additional agreement to pay charges @ Rs. 10,0001- in respect of furniture and fixtures provided therein cannot be reckoned for purposes of computing damagesuls 24(2) of the said Act. Therefore, the Hon'ble High Court held that licensee would be liable to pay license fees @ Rs. 18,0001- from 16-12-2005 till handing over the possession to the suit premises.

Property Advocates in Bangalore

An Article Regarding "Compulsorily registerable property documents"

Compulsorily registerable property documents

 

All documents do not require registration compulsorily. The Transfer of Property Act, 1882 and the Indian Registration Act, 1908 have made registration of certain documents compulsory while in respect of certain other documents it is optional.

According to section 17 of the Indian Registration Act, 1908 registration of documents .Js compulsory if they relate to an immovable property. Similarly, Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property the value of which is one hundred rupees or more should be registered. Since no immovable property is available for rupees one hundred or less than 2. rupees one hundred, implicitly all sale deeds of immovable property need compulsory registration.

Compulsorily registerable Documents:

Section 17(1) of Indian Registration Act 1902, deals with the documents which require registration compulsorily. 

They include:

1.Instruments of gift of immovable 

Gift is given by the donor to the donee without any monetary consideration, but only in consideration of love and affection the donor has towards the donee. Therefore, gift deeds transferring immovable property of the value of Rs.I00/- and above need registration.

2. Other non-testamentary documents which purport to create, assign, limit or extinguish the right, title and interest in immovable property the value of which is more than one hundred rupees need registration.

3. A 11 non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions pertaining to the creation of any right, title, interest in the immovable property need registration.

4. property:

All non-testamentary documents transferring or assigning any decree or order, award of a court, which affect the right, title and interest in immovable property the value of which is one hundred rupees and above. need registration The documents may create, extinguish, assign, declare, limit or restrict the right, title and interest in the immovable property for the present or future, but if the value of such immovable property is one hundred rupees or more, the deed needs to be registered.

Though all types of mortgages need registration, mortgage created by depositing of title deeds, known as equitable mortgage, is not compulsorily registerable. Mostly, banks and financial institutions use this mode of mortgage. However, memorandum of deposit of title deed needs registration.

Section 107 of Transfer of Property Act 1882, prescribes that lease of immovable property from "year to year" or for any term exceeding one year or reserving a yearly rent must be done only by a registered instrument. The phrase from 'year to year', refers to a continuous lease from year to year, that is, where the landlord has no option to terminate the lease at the end of the year without notice. 

Similarly the phrase, "reserving yearly rents" means that the lease has no definite period, but the annual rent is determined. The word "yearly" means that the lease should run year after year or at least more than a year. In general, any lease in excess of one year and above should be registered.

Documents where registration is optional:

There are certain documents registration of which is optional. Section 18 of the Indian Registration Act, 1908 lays down the instruments of which registration is optional. They include: 

a] Instruments relating to transfer of an immovable property, the value of which is less than rupees one hundred; 

b] Lease of an immovable property for a term not exceeding one year; 

c] Wills 

d] Deed of gift of property valued at less than Rs.100/-

Time limit for registration: 

Under Section 23 of the Registration Act, subject to certain exceptions, any document other than a will has to be presented for registration within four months from the date of its execution. Execution means signing of the document.

If a document is not presented for registration within the prescribed period of four months and the delay in presentation of the document does not exceed a further period of four months, then the parties can apply to the Registrar for registration of the document who may direct, upon payment of a fine not exceeding ten times the actual registration fees, for registration of such a document.

A document relating to an immovable property can be executed out of India and later it can be presented for registration in India. As per section 26 of the Registration Act, 1908, if a document purporting to have been executed by all or any of the parties out of India is presented for registration within the prescribed period of time, the Registering Officer may, on payment of proper registration fee accept such document for registration if he is satisfied that the instrument was executed out side India and the instrument has been presented for registration within four months after its arrival in India.

 

Enquiry by the Registering authority:

The Registering Officer is empowered under sec. 34 of the Registration Act to enquire whether or not the person is the same by whom it purports to have been executed such a document. He may insist on production of proof for his identity and in case any person is appearing as a representative or agent, the Registrar may ask for relevant documents to show that the agent or representative has the right to appear on behalf of his principal.

Effect of non-registration: 

What would be the repercussion if a document which is compulsorily registerable is not registered?

Section 49 of Indian Registration Act deals with this situation. It states clearly that such un-registered documents do not convey to the transferee a legally valid title and such documents are not admitted as evidence for any transaction affecting the property referred to in the document. However, there is an exception provided in the Act. The unregistered documents may be admitted as evidence in a suit for specific performance under Specific Relief Act.

Documents are mainly registered for conservation of evidence, assurance of title, and to help an intending purchaser to know if the title deeds of a particular property have been deposited with any financial institution or person for purpose of obtaining loan or advance against security of the property.

Registration of documents acts as notice to the public and to protect themselves against the likely fraud. Therefore, it is advisable to register all documents connected with the immovable property irrespective of whether the registration is compulsory or not as it creates a permanent record of event which are reflected in encumbrance certificates.

As registered documents have higher value of evidence than unregistered documents it is always beneficial to you if you get all your property documents registered within the stipulated period irrespective of the fact that such registration is mandatory or not.

Property Advocates in Bangalore

An Article Regarding "PURCHASE OF PROPERTY BY NRI"

PURCHASE OF PROPERTY BY NRI

Many Indians are moving out to other Countries in search of jobs and returning back only after retirement. Nevertheless, their desire to own a house in their motherland never dies, which, no doubt, is an asset, but is also source of revenue for the Government.

Acquisition and transfer of immovable property in India by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) are regulated by certain legislations, which envisages certain terms and conditions, as discussed below:

FERA and FEMA:

The earliest Law regulating transactions involving acquisition and transfer of the immovable properties by NRIs and PIO is the Foreign Exchange Regulation Act 1973 (FERA) and the same has been now replaced by Foreign Exchange Management Act, 1999 (Act 42 of 1999) (FEMA), which came into force from 1-6-2000. FEMA has authorized the Reserve Bank of India to form guidelines with regard to acquisition of immovable property by NRIs and PIO.

The following are the explanation given to the frequently used terminologies and certain mandatory pre-requisites before acquiring or transferring the property by NRIs or PIOs, which does not require prior permission of RBI.

Non-Resident Indians:

FEMA defines a NRI as a person not residing in India. This category includes: Indian citizens, who reside outside for employment, carrying on any business, vocation or any other purpose indicating definite period of stay outside India,. Indian citizens employed abroad with foreign Government, international agencies like UNO, IMF, World Bank etc.,

Employees of Central and State Governments deputed abroad on temporary assignments or posted to their offices. This includes Indian diplomatic missions.
An Indian citizen who goes abroad on a student visa and takes up appointment after the completion of studies will be regarded as a person residing outside India only after taking up a job abroad. Non-Resident Indians are not regarded as residents in India for holidays, business, etc. Persons residing in India mean a person residing in India for more than one hundred and eighty two days during the previous financial year, but do not include the persons above.
PIOs:

A PIO means a person residing outside India, holding an Indian passport, whose father or grandfather was an Indian citizen by virtue of the Constitution of India or the Citizenship Act, 1955. However, the citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan do not fall under this category.

Acquisition/Transfer of Immovable Property by a NRI:

NRIs can acquire or transfer any immovable property in India except an agricultural land, plantation property and farmhouse. However, they can transfer the same to an Indian Citizen residing in India.

Acquisition and Transfer of immovable property by PIO:

Following are the permissible norms for a PIO:

PIO may purchase any immovable property except agricultural land, farmhouse and plantation property provided the funds are met out of the funds received in India by inward remittances from outside India or from the funds held in non-resident account, complying with provisions of Act and guidelines of RBI. PIO may accept any immovable property by way of gift from a person resident in India or from NIR or a PIO, except agricultural land, farmhouse and plantation property.

There is no bar on inheritance of any immovable property from person resident outside India, provided that person has acquired the property in conformity with the regulations in force at that time or had acquired such property from a person resident in India. He may also transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a Citizen of India or to a person of Indian Origin resident outside India.

Repatriation of Sale Proceeds:

Prior permission of the RBI is required to repatriate the sale proceeds of immovable property outside India, by a NRI, or his successor. The authorized dealer is permitted to allow repatriation of the sale proceeds of immovable property in India, outside India except agricultural, plantation property or farmhouse to a NRI or to a PIO on following conditions:

The acquisition of the immovable property by the Seller is in compliance with the Law and regulations in force. The property is sold after three years from the date of acquisition or from the date of payment of final installment of sale price, whichever is later.

The amount to be repatriated does not exceed the amount paid for acquisition in foreign exchange received through normal banking channels or funds held in foreign currency Non-Resident account or equivalent to foreign currency on the date of payment if acquired through Non-Resident external account.

If the sale proceeds are from the residential property, repatriation should not be more than two properties.

Authorized Dealers may allow to NRIs/PIOs the facility of repatriation of funds out of balances held in their Non-Resident Rupee (NRO) Accounts, subject to production of an undertaking by the remitter and a certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes (CBDT) (enclosed to A.P. (DIR Series) Circular No.56 dated November 26, 2002).

Prohibition on acquisition or transfer of immovable property in India:

There is a complete prohibition against acquisition or transfer of immovable property in India by the citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal and Bhutan without the prior permission of the RBI. However, they may acquire or transfer immovable property on lease, which should not be beyond five years.

Acquisition of Immovable Property for permitted activities:

Reserve Bank of India has accorded permission to the NRIs to acquire immovable property in India, for the purpose of carrying on business or other activities in India on the following conditions:

The purpose is to open a branch or other place of business.

The business or activity is established in India as per the Foreign Exchange Management (Establishment in India of Branch or Offices or other place of business) Regulation, 2000.

The office is not a liaison Office.

There is a need to acquire immovable property to carry on the activity.
There is strict compliance of all applicable Laws, rules, regulations and direction in force.

The person files Form No. II within ninety days from the date of such acquisition.

The immovable property acquired can be transferred by way of mortgage to an authorized dealer as security for any amount borrowed.

Housing loan in rupees to a Non-Resident:

NRI or a PIO is eligible for a housing loan to acquire residential accommodation in India subject to the following conditions:

Loan to be availed from an authorised dealer or a Housing Finance Institution approved by the National Housing Bank.

Amount of loan, margin to be met and repayment period will be as applicable to a person residing in India.

The loan proceeds are not allowed to be credited to Non-Residential External (NRE)/Foreign Currency Non-Resident (FCNR)/Non-Resident non-repatriable account of the borrower.

Loan should be fully secured. The acquired property will; have to be given as security by equitable mortgage. If needed, other assets of the borrower will have to be given by way of lien.

The repayment of loan, interest and other charges shall be by the borrower out of remittances outside India through normal banking channels. This may be from the funds of the borrower in his Non-Resident External (NRE)/Foreign Currency Non-Resident (FCNR) Non-Resident Non-repatriable (NRNR)/Non-Resident-Ordinary (NRO)/Non-Residential Special Rupee (NRSR) account in India. The rental income of the property acquired may also be used for repayment.

The interest charged to the loan shall be in conformity with the RBI, National Housing Bank directives.

Investment in Local Funds:

Reserve Bank of India grants permission to foreign citizens of Indian origin to invest in local funds in real estate on submission of necessary applications provided such investments are for bonafide use of residence.

If the property is not immediately required for residential purpose, the same may be leased out and the lease amount is repatriable.

Foreign Citizens residing in India are allowed to purchase one property for their bonafide residential purpose out of their Rupee funds.

Investment by non-Indian origin Foreign Citizens:

Foreign national of non-Indian origin may purchase immovable properties in India for their residential purpose out of fresh remittance of foreign exchange through normal banking channels, with prior approval of Reserve Bank of India. The income out of investment is not repatriable. If any member of a Partnership Firm, Trust, Association or Club is a Foreign Citizen the prior permission of RBI is necessary for purchase of sale.

Foreign Companies/Banks:

Any foreign company other than Banking Companies is permitted to acquire/hold immovable properties if they are needed for their business. They have to declare such acquisition to the RBI.

Foreign Companies who have only liaison office in India can also invest in acquisition out of fresh remittance.

Foreign Embassies/Diplomats/Consulate Generals:

Foreign Embassy / Diplomat / Consulate General have been allowed to purchase / Sell the immovable property in India other than the agricultural land / Plantation property / Farm house provided (i) Clearance from Government of India, Ministry of External Affairs is obtained for such purchase / sale, and (ii) the consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channel.

In compliance with the mandatory conditions envisaged in the act discussed above, it is also important and advisable to invest in the property free from any legal hassles, which could validly and legally convey the ownership over the immovable property.

Property Advocates in Bangalore

An Article about "LEGAL SCRUTINY FOR THE PROPERTY MATTER"

LEGAL SCRUTINY FOR THE PROPERTY MATTER

It is the desire of every person to own a shelter. At the end of long years of employment some manage to gather the required amount to buy the property while for the more fortunate it is at their desire. However, buying a property always requires a huge investment and careful selection to avoid chances of future disappointments, careful selection, however difficult the process may be, can go a long way in ensuring value appreciation and peaceful enjoyment of the property, as it covers selection of location, right Vendor, etc.

The Bangalore Development Authority is the planning and developing agency in this area. Any layout in the metropolitan area of Bangalore must be approved by the BDA. This is mandatory as per the Karnataka town and country Planning Act, 1961 and BDA Act 1976. So, it is essential to make sure that the site you purchase is in a BDA approved layout or has been approved by any other competent authority. There are many agricultural lands in the metropolitan area and in areas abutting it. The Karnataka Land Reforms Act does not allow purchase of agricultural land by the non-agriculturists; unless it is converted for non-agricultural purpose. Even house building co-operative societies are covered under this restriction.

Revenue Site:

Another dangerous area is a “revenue site”.Revenue sites are formed on agricultural lands, which are not converted.

Using such sites for residential purpose is against the law. These sites are not entitled to power, water supply and sewage connections. Most landowners use Form No.9 & 10 to confuse and convince the Purchasers and these are generally fabricated documents, which are not issued by any statutory authority and hence not genuine.

Government acquired land:

The Government is vested with powers to acquire lands for the purpose of development. Firstly, the Land Acquisition Officer announces a preliminary notification for acquisition of land and calls for objections from the public or the affected party. The affected party has to file objections within 30 days, stating the developments done on that property after obtaining all permissions from the statutory authority concerned and also taking into account the real value of the property. After hearing the case of the affected party, the Government may delete the said survey number from the notification and announce the final notification. After the final notification, the Government may pass an award, after which, such of the properties which have a mention in the final notification is considered as acquired property. Notified lands are prohibited from alienating. But, many Owners sell such notified/acquired lands to gullible Purchasers by using Form Nos.9 and 10. One should be very careful to ascertain as to whether the property was acquired or not and has to check-up with the acquisition authorities in this regard.

Comprehensive Development Plan

The Comprehensive Development Plan (CDP) is in operation in the Bangalore metropolitan area. This plan has divided the metropolitan area into different zones. Each zone is earmarked for particular activities which are, residential, commercial, industrial that includes light and service industries, medium industries and heavy industries, public and semi-public Utilities and Services, Parks and open spaces, play grounds including public recreational area, transport and communication, agricultural land and water sheet (Water body).

Activity other than that stipulated in such zones is not permitted. One must always ensure that the site purchased is used in conformity with the zonal regulations, For example, houses for residential purpose should be constructed only in the residential zone. With regard to this, the zonal regulation map is available at the BDA office and it is essential to verify the Zonal Regulation Map before purchase of property.

Further, Village Panchayaths are also entitled to issue the Khata but only in respect of the village Panchayath area and a further 200 metres from the limit of Gramathana area, which is marked as village area in the survey map issued by the Survey Department.

Legal formalities like tracing title of the property, verifying the sanction plan, electricity, water, sanitary facilities and relevant sanctions, checking up the plinth area, carpet area and the super built up area are all important aspects to be verified with the help of a qualified professional. However, before checking legal formalities, approvals and permissions, it is essential that a careful selection of location with regard to its surrounding areas, habitation, density of population, access of various facilities etc., be made to ensure that the property purchased can be lived in peacefully and that the potential for reasonable value appreciation of the property is good.

Selecting a location:

Location is the most important aspect while investing in a property. It is advisable to ensure that there are no slums nearby, a place of worship attached to the property, drainage line close to the property. The purpose of buying a property often determines the location. It may be for self-occupation as a residence or for investment purposes. If the house/flat is for own occupation, a residential locality not far away from the heart of the city is preferable. If any person offers a property at a cheaper rate than the prevailing market rate, then it is advisable not to accept the offer, as it may have certain hidden problems, which are difficult to trace out. Some people may try to convince you by saying that there is a lot of demand for the property and offer you very little time to make a decision on buying the property. One should not yield or be pressured by such tactics but ensure proper verification and examination of documents with extraordinary care before committing. Always select property in approved layouts to get all the facilities within the layout. The area should have well developed roads; good drainage and the civic staff should do the garbage clearance regularly. Low-lying areas should be avoided as they get inundated during monsoons.

The proximity and accessibility to work place, schools, market place, hospitals, railways, bus station and recreational centers is important. The locality should have adequate banking facility, frequency of public conveyance, other modes of transport, availability of public telephone booths etc. A location which is not far away from the modern facilities and infrastructure but far enough to avoid pollution, is preferable.

Prefer an area inhabited by decent, educated and cultured people of cosmopolitan outlook. Ensure that the area is not home for anti-social elements. There should not be factories or workshop especially the ones which work during night, in the immediate neighborhood, to avoid noise pollution and sleepless nights apart from affecting the quality of power supply. Property attached or close to highways or heavy traffic areas are better avoided as they result in noise pollution. Further, the area should have regular supply of water, power and good ground water table for borewell.

Facilities like public park/garden for walks are worth considering. The location of a temple, mosque or church and religious institutions which arrange regular discourses in this age of stress and strain is a welcome factor. Apart from the above, the size of the plot to suit your budget and the permitted FAR (Floor Area Ratio) are important factors to be considered.

Vaastu Aspect:

Vaastu is of individual preference, however people are increasingly adopting Vaastu principles for their property and it will be worthwhile, keeping in mind the value appreciation and future sale, to ensure that the property is as per the Vaastu guidelines.

If the purchase is for investment purpose, the chance of resale is an important factor to be kept in mind. A developing area is preferable to a developed area. The investment in a developing area is comparatively low and value appreciation will be more.

Non-availability of parking space and traffic restrictions has an adverse effect on the value of the property. Accessibility to the railway/bus stations, airport, star hotels and availability of infrastructure facilities play an important role.

Selecting a Vendor:

While selecting the Vendor/Promoter, you need to look into his track records. This can be done by paying a visit to the earlier projects of the Vendor or in case he is an individual, enquiries could be made with people who had transactions with that individual or with the people living in a close proximity to the property. Similarly, you have to select a reliable real estate dealer to select a suitable property.

Before investing your money in flats or in any property, choose a well known Builder/Developer/Promoter. Do not get carried away by attractive colourful brochures.

Many Builders have abandoned their projects in a semi-finished stage exposing the Purchaser to financial loss and mental agony. Investing in a flat which is under construction by unknown new Builder is risky. Check the credentials of the Builder before investing your hard earned money. Verify the track record of the Builder for prompt delivery, construction standards, adhering to the agreed cost without escalation, providing amenities, before booking a flat. Ensure that there are no deviations from the development rules and also check the post sales service. It is preferable to opt for a ready-to-occupy flat. By doing so, the attendant risk of investing in a property to be developed can be avoided.

Do not be tempted by colourful advertisements and attractive offers, which mention that the said property is Bank approved or BDA approved. Legal opinions from Bank or from the Promoter should not be relied upon. It is always advisable to obtain a proper legal opinion from a well-qualified lawyer before purchasing a property. Further, claims of having obtained BDA are No Objection Certificate or approval from BDA or CMC should not be taken as true in the absence of personal verification by self or through a Lawyer, from the concerned department.

The property scene is similar to the speculation industry; prices can either appreciate or depreciate, though the latter is rare. In fact, it is the difference in the amount of gain in value and the time taken to achieve such appreciation in value which is important. Slow and poor appreciation in value would be almost equal to depreciation while fast and large appreciation can give benefits like any other investment and that too without any effort on the part of the Investor. A thorough study of title, location, developments already in the area, the expected development in the area, other facilities already in place and surrounding places and a careful analysis of these factors before purchase can ensure great benefits and greater peace and prosperity to the Purchaser/Investor.

Property Advocates in Bangalore

An Article about "INVESTMENT IN bangalore PROPERTY – A FINE option"

INVESTMENT IN bangalore PROPERTY – A FINE option

 

Property has perpetually been a fine choice for investment since long, future choice being solely the gold. each property i.e., lands and buildings and gold costs have appreciated significantly within the past few years. The gold worth has since reached nearly its peak and maybe conjointly saturation. Now, property is that the main choice or solely attraction for investment. Properties in some areas attract additional and additional investors, significantly the non residents Indians(NRI).The NRIs are showing additional and additional interest within the stabile properties i.e. lands and buildings. This  has attracted several property developers to the holding market in major cities and metros.

For the past 2 to a few years the property market in bangalore has shown quite a upward trend. With the entry of property developers from different cities to bangalore, the demand for land has gone up enormously. numerous new comes are launched and are being launched, nearly on regular basis giving a lift to the land costs all around metropolis. The Demand for residential house has gone up vastly, significantly within the  neighborhood, of IT industries within the north and south Bangalore. Consequently the extent land costs and residences have gone up in those areas.
 

The demand for medium category areas like for two BHK (Bedroom- Hall –Kitchen) flats is claimed to be quite high. this rating but of such flats looks to be terribly high and therefore the builders square measure indifferent towards the consumers of such medium category areas. The abnormal costs of developed flats is keeping the folks away United Nations agency explore for such accommodation. The developers are seizing additional and additional high finish comes eyeing largely NRIs. the value of flats in such comes starts from a large integer and goes on the far side five.6 Crores.

 variety of property developers are currently turning out with comes for development of  plots for freelance bungalows and villas on the outskirts of metropolis right along the outer route. The plots and villas developers are aforesaid to be with all attainable luxuries and cost accounting crores of rupees . It looks there's no limit for luxuries and therefore the worth. With all such new comes turning out everywhere, the skyline of metropolis is dynamical altogether. The leaf that was seen once is currently nearly lost and it's  replaced with the high-rise building and bunglows. town has mature on the far side imagination of planners, sadly the infrastructure that's necessary has not been developed at the same time and therefore the basic wants like correct roads, water, street lighting and conveyance etc are denied to the areas wherever immense Layouts, searching complexes, industrial and residential areas are turning out.
 

With the ascent in population of town because of massive scale migration and lack of correct and adequate property folks reside in far flung places and ought to depend upon their own vehicles for traveling leading to increase of vehicles population, currently expressed to be around 5 millon. If no action is taken to develop the infrastructure comes, correct property and needed conveyance, matters can more worsen within the  next few years on the far side one’s imagination.

 to date because the assets market of bangalore is concerued, there's an excellent demand for industrial and residential areas, significantly the center category folks have an interest in shopping for areas for residential functions. The property developers could ought to contemplate turning out with additional comes, with one and 2 BHK flats or row homes to fulfill the demand, that is ever increasing for residential accommodation specially.

Property Advocates in Bangalore

Right to information Act can become handy against corruption

Right to information Act can become handy against corruption

In our Country, whenever an individual needs to urge any permission any certificate etc, he must sit up for ages or or else grease the palms of the officers and acquire the items done. Whenever any file is submitted, the general public area unit at a loss to understand regarding the fate of their files and to feature insult to injury, corruption is ruling the department’s right from the bottom level to the highest level.

With the enactment of the proper to data Act, 2005, by the Parliament, a ray of hope has emerged within the minds of the general public to urge the Official machinery add a corrupt free atmosphere since; this Act provides power and paves the method for the honest subject to urge their Official work processed while not undue delay. If used properly, this Act might become a weapon to bring down the corruption in Government Departments. a really encouraging development as so much as this Act thinks about is that it's simply not restricted to Government and Municipal firms, however additionally includes all Public Authorities viz. Organizations, NGOs and different bodies that area unit supported by the govt. the proper to data Act is so a really useful Act for the common person and if employed in a correct method, it's going to result in less tackiness and additional transparency.

The Right to data Act, 2005 that has get with impact from twelfth October 2005 might facilitate the property business to an excellent extent since  the land and  building connected documents that couldn't be procured simply from the govt Departments viz. Taluk workplace, Corporation workplace, Sub-Registrar workplace, Survey Department, Assistant Commissioner's workplace etc., while not greasing the palms of the officers, will currently be insisted on to be supplied with, studied and verified well ahead before embarking on any project by invoking the provisions of the proper to data Act, Section 2(j) of the Act defines the 'Right to Information’ as:

'Right of Information' is that the right to accumulate data accessible underneath the Act that is control by or underneath the management of any Public Authority and includes the proper to:

a) examination of labor, documents, records

b) Taking notes, extracts or certified copies of documents or records

c) Taking certified samples of fabric

d) getting data within the variety of diskettes, floppies, tapes, video cassettes or in the other electronic mode or through printouts wherever such data is keep in a very pc or in the other device.

Thus, by invoking the availability of the proper to data Act, associate someone WHO has been unsuccessful in obtaining his building arrange sanctioned or just in case of immoderate delay in getting such sanction despite the arrange yielding all the statutory needs and Bye-Laws prescribed, will currently place the BBMP body machinery to figure quickly by seeking, inter alia, the subsequent inquiries to be answered by the general public data Officer of the Department.

 
a) what's the standing of his plan? 

b) what number different plans were submitted on the day on that plans was submitted by him?

c) Out of these plans, what number are sanctioned? 

d) What is going on to any or all the opposite plans? 

Further, he's currently entitled to fire the examination of documents, records, take notes and procure certified copies.

How to write an application?

While filing an RTI application, the framing of the queries is incredibly vital. a small misunderstanding or obscure queries provides the PIO an opportunity to reject your application. Follow these guidelines:

•    A white sheet of paper shall be accustomed write associate application. there's no ought to use a Note-sheet, or the Court stamp paper.
•    The matter may be hand written, or typed. there's no compulsion of typewriting the content
•    The application must be fair and straightforward to scan
•    While soliciting for data there's no restriction on variety of pages
•    There isn't any restriction on variety of queries that may be asked in one application. However, it's recommended to raise with restricted set of queries and solely connected queries with one application.
•    One might raise as several short queries that he / she might prefer to. however massive data at a go isn't most popular.
•    In the applying perpetually the name and therefore the signature must be written, and there's no ought to mention one’s post/designation as any subject has the proper to data
•    A direct question starting with ‘ Why’ ought to ne'er be asked, because it is vulnerable to be rejected for not being coated underneath RTI
•    Reasons behind an "administrative" or a "quasi-judicial" call underneath Section 4(1)(d) shall be asked , particularly if one is an "affected person"
•    If the data wanted is voluminous, it's higher to raise it within the variety of CD to avoid wasting on price
•    One needn't ought to write the rationale for asking the data
•    The payment details like BC/DD/IPO variety, supplying bank/post workplace, date, money receipt details etc., must run towards the tip of the applying
 To whom the applying ought to be addressed?
•    The details of Public data officer, name, address etc. whom one needs to use to ought to be written.
•    In case there's a drag in locating the general public data Officer/Assistant Public data Officer, the RTI application may be self-addressed to the general public data Officer, C/o Head of Department and sent to the involved Public Authority with the requisite application fee.
•    The Head of Department can got to forward the applying to the involved Public data Officer.
•    The specific name of the general public data Officer shouldn't be mentioned on the applying kind, as there's each probability that he may get transferred, or a brand new person being selected in his place.

Application Procedure for requesting information:

1)    The Application ought to be in writing or through electronic means that in English, Hindi or within the official language of the realm, to the PIO specifying particulars of the data probe for.
2)     Reason for seeking data isn't needed to be given;
3)     Prescribed fees shall be paid (if not happiness to the below poverty level category).
How to submit a RTI Application?
a)    Personally, by hand
b)    Registered Post Acknowledgement Due (AD)
c)    Speed Post (A communicating department service)
d)    Do not use standard post, personal traveller corporations, etc. since these won't give you with a confirmed proof of delivery

Time limit to urge the information:

1.    thirty days from the date of application
2.    forty eight hours for data regarding the life or liberty of an individual
3.    five days shall be additional to the higher than reaction time, just in case the applying for data is given to Assistant Public data Officer.
4.    If the interests of a 3rd party area unit concerned then closing date are forty days (maximum amount + time given to the party to form representation).
5.    Failure to produce data inside the desired amount could be a deemed refusal.

Information, that have an effect on the sovereignty and integrity of Republic of India or security, strategic, scientific and economic interests of the State in relation with Foreign State and bound data as mentioned in Sections eight & nine of the Act is also denied to be supplied with.

By invoking the provisions of this Act by the general public, the executive Machinery may be placed on the proper track that successively will facilitate within the reduction of corrupt practices.

Property Advocates in Bangalore