Bangalore Development Authority Allotment of website Rules 1984 has been amended and therefore the Government of karnataka has brought back the Lease-cum-Sale methodology. although Lease-cum-Sale methodology was trendy for several years, the relevant rule (Rule No.7) was omitted by Notification No.UDD/411/MNJ/2000(P), dated 23-10-2000. But, the govt of karnataka by its Notification No.UDD/59/MNJ/2005, dated 27-4-2005 has reintroduced the Rule No.7 with result from 27-4-2005.
CITB AND BDA:
Many cities across the globe have development authorities. they're the design authorities conjointly. They management and regularize orderly growth of cities. Earlier, Bangalore had town Improvement Trust Board (CITB) that was replaced by Bangalore Development Authority (BDA) from 8-3-1976 by a separate Act “Bangalore Development Authority Act 1976(Karnataka Act twelve of 1976)”.
The objective of the Act is for development of Bangalore and areas adjacent to that. one amongst the most important functions of BDA is to amass land around Bangalore, type Layout and allot sites to the candidates.
What is Lease-cum-Sale:
Allotment of web sites by BDA isn't a billboard venture, however strictly to serve the social explanation for providing a shelter to the indigent. The Authority needs to make sure that its purpose isn't defeated by land grabbers, middlemen regarding the allotment.
Bangalore Development Authority (Allotment of Sites) Rules 1984 provides that anyone or associate degreey member of whose family owns a {site|website|web website} or an house or has been assigned a site or house by BDA or a Co-operative Society registered below karnataka Co-operative Societies Act 1969 or the other authority among Bangalore Metropolitan space isn't eligible to use for sites from BDA. this can be to confirm that solely persons, United Nations agency don't own website or house in Bangalore Metropolitan space, area unit given sites at cheap worth abundant but market price.
Lease-cum-Sale methodology any ensures that the allottees don't misuse the positioning and sell it to create a quick buck. The allottee won't get absolute possession of the positioning. He can enter into lease-cum-sale agreement with the BDA and sure enough amount, he are going to be solely a renter of the BDA and doesn't have authority to sell the property. Further, he needs to construct a house as per the approved set up within the assigned website among given amount. Only after lapse of lease amount and on fulfilling the conditions like construction of house, BDA can execute Absolute Sale Deed in favour of allottee. However, the user is entitled to avail Housing Finance for the aim of construction of house building.
As declared earlier, this methodology was omitted from 23-10-2000 and BDA was execution absolutely the sale deed to the allottee in real time when the complete payment created. This has reduced the work load procedure wrangles at BDA workplace and therefore the allottee has an quality to fall back just in case inevitably and emergency.
Misuse:
The ending of Lease-cum-sale that was done to assist the general public was ill-used. although {the website|the location|the positioning} Allotment Rules prohibits anyone United Nations agency owns a site or a house from applying for allotment, several landlords, middlemen, and property agents started applying for sites through proxy candidates or on their own name suppressing the facts. There area unit several poor folks, slum-dwellers United Nations agency sign the applications for a few cash. As presently because the allotment was done, the sites were oversubscribed at the prevailing value creating immense profits. this can be during a} means contributed to cost spiral except for defeating the very purpose and social cause.
Reintroduction:
To avoid this blatant misuse of BDA sites, lease-cum-sale was reintroduced by Government Notification dated 27-4-2005. The reintroduced rule(Rule 7) reads as follows:
Rule No.7: the positioning assigned below the foundations shall be deemed to possess been chartered to the allottee on lease, unless the lease is decided or website is sent within the name of the allottee in accordance with these rules. throughout the amount of lease, the allottee shall pay to the authority before commencement of every year, rent at the speed of Rupees 5 each year, wherever the realm of the positioning doesn't exceed 200 sq. meters, Rupees 10 each year wherever the realm of the positioning exceeds 200 sq. meters, however doesn't exceed 5 hundred sq. meters, and Rupees Twenty each year, wherever the realm of the positioning exceeds 5 hundred sq. meters.
Procedure:
The procedure is as follows:
After the payment of the worth of website, the Authority invitations the allottee to execute Lease-cum-sale deed within the prescribed type among sixty days which is able to be registered within the registrar workplace.
The allottee are going to be place in possession of the positioning. The lease-cum-sale agreement contains varied conditions like restriction or alienation of property, time-limit to construct house,ground rent collectable.
The allottee shall construct a building as per the plans approved by the authority among a amount of 5 years from the date of agreement. The authority could extend this era at the request of the allottee. If the allottee fails to complete the development of house among 5 years or allowable amount, the lease are going to be off. The Authority forfeits twelve and 0.5 p.c of the worth of the positioning paid and refunds the balance quantity to the allottee.
After the end of 10 years of in agreement lease amount, the authority calls upon the allottee to urge absolutely the sale deed dead and registered providing the lease has not been off earlier.
Though absolute legal title has not passed to the allottee throughout the lease amount, he shall pay taxes, fees, cess collectable on website or building.
The assigned website can't be oversubscribed among a amount of 10 years from the date of possession. However, the positioning is also encumbered in favour of Central/State Governments, money establishments to secure loan for construction of building. If the positioning is oversubscribed among a lease amount of 10 years, the authority when due notice could cancel the allotment, resume the positioning and forfeit the amounts paid.
Surrender of site:
If the allottee opts to surrender the positioning throughout the lease amount for reasons on the far side his management like financial condition etc., the authority with the previous approval of the govt, can compensate the allottees as follows:
a) In case of surrender of vacant website while not building, the authority shall pay worth of website paid by the allottee in conjunction with interest at the speed of twelve-tone music each year.
b) If the building is made on the positioning, the authority shall allow the allottee to sell the property provided he pays interest at twelve-tone music each year to the authority on the worth of the positioning paid.
Implications:
The revised procedure would curb industrial selling of the positioning in real time when allotment and conjointly part controls the worth spiral. But, just in case of absolute requirements and emergencies, the allottee can resort to antagonistic the correctty by execution Power of lawyer by that the vendee wouldn't get proper title. although the BDA rules has provisions to surrender the positioning, the returns area unit too deficient just in case of surrender of website. because the allottee needs to pay interest to the BDA for permission to sell the positioning with building , he can inspect different suggests that.
Complication of Title:
Of course, the re-introduction of lease-cum-sale for BDA assigned sites could be a right issue for the real finish users. However, watching the routine of the allottees, they'll try and sell the properties by means of GPA/Agreements/ Affidavits/Undertaking etc., which is able to result in complication of title.
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