Wednesday, 12 November 2014

REQUIREMENT OF AGREEMENTS OF PROPERTY DEALINGS

Property legal opinion|Property Registration|Business lawyers

The various modes of transfer of property are Sale, Mortgage, Lease, Exchange, Gift etc., of these transfers are subject to general principles of Transfer of Property and contract underneath the Indian Contract Act, 1872.  This has been expressly declared in Sec. four of the transfer of property Act, that states that, “The Chapters and sections of this Act that relate to contracts shall be taken as a part of the Indian contract Act, 1872.”
 
Now thus far as agreement & contract cares, it's pretty much essential to understand,
1. What’s valid agreement?
2. Once agreement becomes contract?
3. What’s the impact of agreements created not in line with the law?
The term “agreement” has been outlined in Sec 2(C) of the Indian contract Act, 1872 as, “Every promise and each set of guarantees, forming the thought for every alternative, is an agreement”.

Consideration:
One person is alleged to form a promise to the opposite, if his /her supply is accepted by the opposite person. Once this promise is supported by thought, it becomes a contract. So 1st and foremost demand of agreement is, it should are supported by the thought.  However, the thought isn't an determinant consider sure cases as elaborated in Section twenty five of Indian Contract Act
1. Gift to dear and near ones,
2. One thing given for past service
3. Acknowledgement of your time barred debt.

Requirement:
The second necessary demand of agreement, for an agreement to be enforceable by law, it should fulfill the conditions started in Sec 10 of the Indian contract Act.  They are:
1. Agreement should be created
2. By competent parties,
3. with free consent,
4. For lawful thought and
5. For lawful object.

Sec – 11 of the Indian Contract Act defines competent parties as, those persons UN agency have
1. Earned the age of majority
2. Are of sound mind, and
3. Don’t seem to be disqualified by any provisions of law.

The age of majority for a person is eighteen years underneath the Indian Majority Act. Just in case of someone is tormented by any mental illness throughout sure intervals of your time; he or she will be able to enter into an agreement throughout the time such person is of sound mind. Currently the question that arises for thought is that if person is drunk or intoxicated because of medication will he enter into an agreement. During this quite scenario, if the intoxicated person is in position to grasp and appreciate the professionals and cons of terms and conditions of the agreement, there's no bar for the Scottish person to enter into an agreement. However, just in case of any disputes, it's to be established to the satisfaction of the court that the person tormented by mental illness, underneath intoxication was in an exceedingly position to grasp the terms, professionals and cons of agreement.
Another demand for someone to enter into an agreement is that, such person mustn't are disqualified by any law effective like economic condition Act.

Free Consent:
The parties to the agreement ought to have in agreement to the terms with free consent. Any consent is alleged to be free, once it's not given underneath.
1. Coercion,
2. Undue influence,
3. Fraud
4. Misrepresentation.
In case consent is given underneath by any of higher than components then the agreement or contract becomes rescindable. The impact of rescindable contract is that the contract becomes enforceable solely at the choice of the party whose consent has been taken by coercion or undue influence or fraud or untruth. Underneath rescindable contract if any property is sold, the customer gets a legitimate title farewell the contract isn't off on the bottom that contract is rescindable.

Lawful Object:
U/S 10, the third and fourth essential demand of agreement are:-
2. Lawful object.
If the thought and object of contract isn't lawful, then such agreement becomes void, Contracts or illegal contracts u/s 23 and 24 of the Indian Contract Act.  If any property is sold underneath void or criminal contract, then customer wouldn't get valid title to the property. Void contracts don't seem to be enforceable.

Consequences of void, rescindable or illegal contracts.
If a contract is asserted as void, the transferee of property wouldn't get valid title to the property, the position of parties is like as if they're not entered into the contract the least bit. So u/s sixty four of the contract Act, the parties are susceptible to come back the benefits they need taken underneath void contract.

As declared earlier, in rescindable contract the transferee can get a legitimate title, farewell the contract isn't off by the party whose consent was obtained underneath coercion, undue influence, fraud, and untruth. Such party needs to exercise his choice of treating the contract as void at intervals the limitation amount that is 3 years. Just in case of criminal contracts, if one party has given or delivered one thing to the opposite party identical can't be recovered at all.

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Tuesday, 11 November 2014

TIPS ON WHERE TO INVEST AND HOW?

Property lawyers in Bangalore|Property transfer advisor|Advocate Selvakumar


Man doesn't live just for food, fabric or shelter or for himself.  He has bound social responsibilities to supply for his family and conjointly for himself in maturity. This naturally makes him to save lots of some portion of earnings and invest in remunerative portfolios. Once the fundamental wants of food, fabric and shelter are consummated he strives to boost his customary of living and to relish the fruits of hard-earned cash.

Investment avenues are several. However the capitalist ought to be prudent enough to pick a correct space that is safe and secured with assured cheap returns. Earlier the bank deposits, stocks, open-end fund insurance policies and bullion were most opted. With inflated business, economic process of economy have unpleased more areas. The investment has become terribly complicated that has led to the aborning of specialised investment advisers.

Bank deposits, insurance policies, mutual funds became unattractive owing to low returns and failure of the many firms. Stock market is unpredictable and volatile. Moreover, these investment avenues are for short which require shut observance. More the quantum of investment is mostly little.

In recent past assets has emerged as a secure and high yielding investment chance. Investment in assets may be a long-run investment and desires considerable quantity. It’s not solely money however conjointly sentimental, emotional investment.

The liberalization initiated by the govt., opened the up to now dormant Indian economy and plenty of international firms originated their offices in major metros. The improved pay pockets of vast class population offered as several investment routes. With a want to possess a roof over their head as early as attainable, the migration of rural people to urban centers in search of assured financial gain jobs, more swollen the important estate market.


However, because the demand exceeded provide, several fly by night operators appeared on the stage and indulged speculative and artificial worth spiral that resulted in crash of assets market in later half of 1990. However currently the market has regained its potential. Solely serious vendors and end-users are operative within the market.

The yield within the material possession market must be calculated on the capital endowed and annual rental returns less property tax, taxation and annual maintenance charges. This come back varies per the kind of property, residential industrial workplace house. In city the returns are regarding 8 may 1945 for residential, 12-tone music for workplace house and 15 august 1945 for industrial house. They’re bound determinative factors that play an important half in property investment.

Where to invest? In different words the situation. There’s equal demand for every kind of house in metropolitan cities and market trends rates are additional clear on account of competition and frequency of deals. However smaller cities have potential of inflated returns owing to dearth of house. Native politics conjointly plays its role in determinative the returns in little cities.

Amount of investment: Investment in assets wants higher quantity and therefore the minimum entry level are going to be in multiples of lakhs regarding 15 lakhs for residential and additional for workplace and industrial house.

Time factor: The sale of property needs long term for locating an appropriate buyer and yielding with legal needs, more the appreciation of capital worth of the land is slow however bound and stable in contrast to in stocks and debentures.
Statutes native Laws: The material possession investment incorporate additional discretion and involves sophisticated method like title verification, land use per native laws, floor space magnitude relation restriction on sale for a few amount and plenty of additional sudden laws, rules relying upon the political surroundings.

Tax factor: unsure tax rules, rates that vary every year have to be compelled to be thought-about. Capital levy is an annual commitment that is being inflated once a year by self-assessment or capital based mostly assessment. Income conjointly attracts taxation to be paid annually; sale of the property attracts capital gains and get invitations taxation and registration charges, capital levy & taxation varies from state to state.

Type of property: As explicit earlier the kind of the property is additionally important. it should be residential, industrial or workplace house. The demand and provide position of every sector has to be fastidiously examined.  Residential property incorporates smaller investment. Industrial and workplace house would like higher investment.

Type of returns: Real estate sector offers 2 varieties of come backs: revenant is monthly return within the sort of rentals, or the returns on the lease quantity endowed bank, securities or in business. The opposite sort is come back on sale of the property. The number to be endowed conjointly depends on the mode of returns expected. Typically leasing of property is engaging just for business individuals. Lease quantity doesn't attract interest. Industrial property and workplace house yield high returns to the extent of 15 august 1945 wherever because the residential property yield regarding V-day.

Risk issue and Limitations of Legal Scrutiny: Tracing the title of property is most vital step in buying the property that must be done by an advocate well versed in property laws and well older.  The property laws are terribly complicated and vary from state to state. More persistently, antique records have to be compelled to be examined, which cannot be obtainable with the parties or maybe in territorial offices. More legal scrutiny relies on the documents created for verification. However, it's not the duty of the advocate to certify the genuineness of the documents from involved departments. The honesty and integrity of the vendor is extremely necessary. Bound hidden facts like unfinished cases, previous agreements, government notification of the property cannot be derived simply by verification of the documents. However, paper notification regarding purchase of property would facilitate to unearth some claims.

Liquidity: Investment in assets cannot be forthwith regenerate to money in contrast to stocks, deposits. But the property is most wanted security for bank loans and rents is also securitized by getting loans from the Banks. 

Maintenance charges: Property wants periodical maintenance that involves right smart quantity.

Landlord residence problem: Most of Indian laws are pro tenant giving most protection to tenants however bit by bit they're being amended to strike fine balance. However even currently it takes a lot of time to evict a tenant who has defaulted in payment of rents or who has profaned the terms of agreement.

Political Environment: Government has most management of assets sector. Sale or purchase of agricultural land has several restrictions in state. Land use restrictions exist in several cities. The foremost supply of revenue to the govt. is from the stabile properties within the sort of taxation and capital levy. Just in case of acquisition by the govt. the compensation paid is extremely a lot of but the value.

Price cycle: it's been discovered that the important estate has regular ups and downs wherever the costs prolong increasing for a few amount and slide downward for time. However this cycle is long-run trend. Although the investment is large, the investors have to hold back to own sensible returns that takes long term. It might be unsafe to expect appreciation briefly run. 2 elements, the building and land move in opposite directions, the building worth gets depreciated and land worth gets appreciated.

Other factors: Some factors remotely connected to the present sector plays crucial part/role in determinative the worth. Introduction of unidirectional traffic construction of flyovers close to the property decreases the worth of the property. Vaastu these days has become necessary. Another space of concern in wish of knowledge in property market.  The obtainable info is just too insufficient typically contrastive. Even the transactions recorded in registrar’s workplace won't reveal the important worth of the property as amounts aside from what's mentioned within the documents may need concerned.

Rental Income: The income from the properties is within the vary of 0.5% to 1% p.m. on the investment. Except for this financial gain, the worth of the property appreciates often. Whereas just in case of bank deposits, the worth of the money deposited gets scoured on account of inflation.The investment in agriculture properties and farm homes isn’t remunerative.The financial gain from the Agricultural property is seasonal and depends on weather and climate. Further, the sale of the Agricultural properties has several restrictions. The farm house demands sensible maintenance that proves pricey as at persistently the financial gain might not match the upkeep charges. The investment in assets may be a higher possibility.

The real estate is merely sector that yield higher returns except for capital appreciation, provided the capitalist is prudent and have taken enough precautions.

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Monday, 10 November 2014

DOCUMENTS TO BE PRODUCED AT THE TIME OF REGISTRATION

Advocate Selvakumar|Property Advocates in Bangalore|Senior Lawyer



At the time of registration of the properties, varied documents are needed to be created at the Sub-Registrar's workplace. List of such documents might vary on the idea of the character of the property. In general, the subsequent are the classifications of documents, that square measure needed to be created at the time of registration:

a) An official document stating the dealings isn't offensive of the provisions of Section 22A of Indian Registration Act. 

b) Extract of the assessment Register for the aim of valuation of the property (Form No19 if the property comes inside Municipal space or type No. 9 and 10 just in case of panchayath area). 

c) If the property comes inside the limits of Corporation Khatha Certificate, Katha Extract and Latest Tax paid receipt.


e) Permanent Account No (PAN) issued by taxation Department or Declaration in type No.60 or 61 if the worth of the property to be registered exceeds Rs 5.00lakhs and wherever payment is created fully or part in money.

Agricultural land:
The sale and buy of agricultural land has several restrictions and in and of it several documents conformist to the requisites are needed for registration that is mentioned below:
a)Two copies of official document stating that the dealings isn't offensive of Section 22 A of Indian Registration Act.
b)Two copies of official document regarding owning agriculture lands.
c)If the property is granted land or of occupancy rights operative from Tahsildar
d)Declaration below section 81 A of Land Reforms Act.
e)Form no.1 prescribed in Karnataka Stamp (Prevention of below valuation)
f)Permanent Account No (PAN) issued by taxation Department
g)Declaration in type 60 or 61 if the worth of the property to be registered is quite Rs 5lakhs and wherever payment is totally or part through money.
h)'J' Form
i)Purchaser's pahani
j)Copy of the RTC referring to the Property to be registered

Apartments:
The following are the documents needed to be created before the Sub-Registrar, atthe time of registration of living accommodations.
a)Katha referring to the total land.
b)Tax paid receipt for the entire land.
c)Plan sanctioned by the Competent Authority.
d)Floor arrange.
e)Form no.1 prescribed in Karnataka Stamp (Prevention of below valuation)
f)Two copies of affidavit stating that the dealings isn't offensive of Section twenty two A of Indian Registration Act.

Stamp Duty and Registration Charges:
Stamp duty needed to be procured the property coming back inside the boundaries of Corporation or a Municipality is eight.96% on the entire sale thought mentioned within the Sale Deed or on the value of the property, whichever is higher. For the properties that falls on the far side the boundaries of Corporation or CMC, the tax needed to be collectable is 9.04%.
Registration charges collectable for the registration of the properties, regardless of its nature are 18 on the sale thought or the value, whichever is higher. With the exception of the higher than, scanning charges has got to be paid, which can usually be between Rs.400 to Rs.800.

Scanning of Documents:
After Telgi Scam, usage of Stamp Papers is prohibited in Karnataka. In various, a pair of Rupees Document sheet is created obtainable to the general public issued by the govt Department, who can got to take print out either in such Document sheets or may also use written report for identical. At the time of presenting such document for registration before the Sub-Registrar, details regarding the Vendor/s, Seller/s, tax and registration charges needed to be paid, are going to be recorded within the laptop, alongside the photos of the Vendor/s, Seller/s and willing Witness/s, if any. Further, name of the person distinguishing the Vendor/s also will be recorded within the laptop. afterward, print out of all the small print of the Vendor/s, Seller/s and willing Witness/s, if any recorded within the laptop, alongside their signatures, are going to be taken on the rear facet of the Sale Deed and when the Sub-Registrar signs on such sale deeds, details regarding the document variety, CD No and alternative relevant details are going to be keep within the Sub-Registrar’s workplace.

Registration of the documents opposition the general public policy:
The Government of Karnataka has declared that registration of sure documents is opposition the general public policy that is listed below:
a) Agreement to sell, sale, gift, exchange, mortgage lease or assignment of that occupancy rights are granted below Chapter III of Karnataka Land Reforms Act 1061, in dispute of restrictions obligatory below Section sixty one of the aforesaid act and relevant rules.
b) Any agreement to sell, sale, gift, exchange or otherwise of land in far more than ceiling limits prescribed below Section 63 or 64 of Karnataka Land Reforms Act and in dispute of Section 74 of the aforesaid act and relevant rule
c)Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural land to an individual, family, joint family with associate degree assured annual financial gain of Rs.40lakhs or a lot of from non agricultural supply in dispute of section seventy four of Karnataka land Reforms Act and relevant rules.
d) Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural land to instructional, religious, charitable establishments, society, trust, company, association alternative body of people, cooperative society apart from cooperative farming society in dispute of section 79B of Karnataka land reforms Act subject to exceptions provided.
e) Agreement to sell, sale, gift, lease, mortgage with possession or otherwise of any agricultural land granted below Karnataka land grant rules subject to restriction obligatory on sale, transfer and specific use obligatory there below.

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Friday, 7 November 2014

An Article about "Transfer of property to Relatives-Tips to Investors"

 
http://propertyadvocates.in/

Special care should be taken by a person while transferring property to his relatives from the point of Income Tax. These aspects are discussed in this tip. The sections referred to are of the Income Tax ACT, 1961.

If a person transfers only income from a property and not the property itself, then he continues to be assessable to income tax for the income from such property, despite the transfer, whether revocable or irrevocable. This is as per Section 60. Hence any person interested in a bonafide transfer of property to a relative should transfer it so that, not only the income of the property but the property itself is transferred to the transferee.

It is provided by section 61, that if there is a revocable transfer of assets, then all income arising to any person would be chargeable to income tax as the income of the transferor and be liable to be included in his total income. However, even in respect of a revocable transfer of property, there is an exemption, viz. Where any income arises to the transferee by virtue of transferby way of a trust, which is not revocable durning the lifetime of thebeneficiary or in the case of any other type of transfer, such as by way ofgift, etc., Where it is not revocable buring the lifetime of the trensferee. However, one essential condition to be fulfilled in such a case (u/s 62), is that the transferor should not derive any direct or indirect benefit from such income in either case. It should be noted that, as and when the power to revoke the transfer arises, all income by virtue of such transfer would be chargeable as the income of the transferor and would be included in his income. Yhe expression “transfer” includes any settlement, trust, covenant, agreement or arrangement. The expression “relative” for the purpose of the Income Tax Act, Section 2(41), in relation to an individual, means the husband, wife, brother or sister or any lineal ascendantor descendant of that individual, like father, son, etc.

Normally the income of any property irrevocably transferred by the transferor to the transferee, should be assessed in the hands of the transferee only. But there are certain exceptions provide in Section 64(1) for the clubbing of income, where the transfer is made to certain close relatives without any adequate consideration, For example, where the transfer is without any adequate consideration, made by way of gift, then the transferor should not make any transfer of a property to his spouse and daughter-in-law, either directly or indirectly. Thus, if a property is gifted to any of the aforesaid persons to any of the aforesaid persons by an individual, then the income from the property transferred, would continue to be includable in the total income of the transferor as per Section 64(1). It may be noted here, that a person can now make gifts of immovable property to one or more persons without any upper limit. But care must be taken to avoid the clubing provissions as mentioned earlier.However, there is a tax planning device by which the clubbing of the income of an asset transferred to a close relative can be avoid. Thus, a married lady should not receive any gift from her husband, father- in-law and mother-in-law. If, however, gifts are received by a lady just before marriage, as pre-nuptial gift of property, it willl not be liable to be included, as held in Philip Thomas vs CIT 49 ITR (SC) 97 by the Supreme Court, where such pre-nuptial gifts are made to an unmarried lady only.

Under the Hindu Law, a copartner can impress his self acquired property eith the character of a joint Hindu property by making a declaration to that effect. However, Section 64(2) provides, that from January 1, 1970, if any person transfers his self-acquired property to his Hindu Undivided Family (HUF), then the income from such transferred property would still be inclded in his own individed in his own individual assessment. Hence, this should be avoided. However, a transfer can still be made to a separate branch of the HUF, i.e. of the married son, grandson or brother, etc., without attracting Section 64(2). In this manner, a separate branch of the HUF of the married son or the married brother, etc. could be created by an individual through a special gift of property.

Sometimes, properties are transferred for the benefit of a future relative, like the would -be wife of a son or would-be husband of a daughter, etc. Such a trust, for the benefit of an unborn or future relative is valid under the Transfer of Property Act. It has also been held by Courts in India, that such trusts for unborn persons are also valid. However, it is provided under Section 164(1), that where such a transfer is made, the income from such a transfer generally made to close relatives, unborn, indeterminate or unknown at the time of transfer, are liable to tax at the maximum rate of tax. But an exception is provided under clause (1) of first proviso to Section 164(1) whereby, if such a trust is the only trust made for the benefit of the unknown person and the beneficiaries do not have any other taxable income, then the income of such a trust is assessable at the normal slab rates applicable to an Association of Persons, that is, like an individual. This is also confirmed by the CBDT circular No. 577, dated September 4, 1990.

A discretionary trust can be created through the provisions of a 'Will' in such a manner, that it is the only trust so declared by the Will, so that it becomes assessable as a separate taxable entity, liable to tax at the slab rates applicable to an AOP or an individual and not at the maximum rate of tax. Such a trust could provide for property to be given to the wife, children, grandchildren, future grandchildren, great grandchildren, etc., of the testator, i.e. the person making the Will.

While making a transfer of immovable property to relatives in general and other taxpayers in particular, a person would derive immense benefit by observing the aforesaid principles of Income Tax Law.
 

Tuesday, 4 November 2014

An Article about "BY OVERSTAYING A LICENSEE CANNOT CLAIM TENANCY RIGHTS"

 
http://propertyadvocates.in/specialization.html

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 order the 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 uls 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 license agreement 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 damages uls 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.

Monday, 3 November 2014

An Article regarding "RIGHT TO INFORMATION ACT CAN BECOME HANDY AGAINST CORRUPTION"


Corruption is rampant in most of the Government departments. The money and the wealth unearthed by the Karnataka Lok Ayukta during rides in recent past on the offices and residential premises of the corrupt Government officials would prove that the height of corruption in Karnataka is unimaginable. What the Karnataka Lok Ayukta has unearthed is only a decimal ofa bigger proportion. There are lots of such corrupt elements in Government departments who need similar treatment by the Lok Ayukta. It is a known fact that unless the officials are bribed, nothing works. In most of the Government departments,right from the lowest level to the top level, corruption is prevalent. Citizens are greatly disturbed and distressed by these corrupt practices.

With the enactment of the Right to Information Act, 2005, by the Parliament, a ray of hope has emerged in the minds of the public to get the official machinery work in a corrupt free atmosphere since this Act gives power and paves the way for the honest citizen to get their official work processed without undue delay. If used properly, this Act could become a weapon to bring down the corruption in Government departments. A very encourag- ing development as far as this Act is concerned is that it is just not restricted to Government and Municipal Corporations but also includes all public authorities viz. organizations, NGOs and other bodies which arefinanced by the Government. The Right to Information Act is indeed a very beneficial Act for the common man and if used in a proper way, it may lead to less sleaze and more transparency.

The Right to Information Act, 2005 which has come into with effect from 12'h of Oct 2005 could help the property industry to a great extent since the land and building related documents which could not be procured easily from the Government departments viz. Taluk Office, Corporation Office, Sub-Registrar Office, Survey Department, Assistant Commissioner's Office etc., without greasing the palms of the officials can now be insisted on to be furnished, studied and verified well in advance before embarking on any project by invoking the provisions of the Right to Information Act.. Section 2(j) of the Act defines the 'right to information' as.

'Right of Information' is the right to acquire information accessible under the Act which is held by or under the control of any public authority and includes the right to

a) Inspection of work, documents, records
b) Taking notes, extracts or certified copies of documents or records
c) Taking certified samples of material
d) Obtaining information in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device.

Thus, by invoking the provision of the Right to Information Act, an applicant who has been unsuccessful in getting his building plan sanctioned or there is inordinate delay in obtaining such sanction despite the plan complying all the statutory requirements and bye-laws prescribed can now put the BBMP administrative machinery to work speedily by seeking, inter alia, the following questions to be answered by the Public Information Officer of the department.

Further, he is now entitled to ask for the inspection of documents, records, take notes and obtain certified copies.

a) What is the status of his plan?
b) How many other plans were submitted on the day on which plans was submitted by him?
c) Out of those plans, how many have been sanctioned?
d) What has happened to all the other plans?

Appointment of Public Information Officer

Under the Act, it is imperative for all the administrative offices of public authorities to appoint a Public Information Officer. He willact as a catalyst between the applicant who wants the information on the one sideand the department on the other.

Nominal fee is collected for furnishing the informationunder the Right to Information Act. In normal course, the information sought for should be provided within a period of one month. If there is delay in providing the information or deliberate refusal to part with the information, the PIO ispenalized at Rs. 250/- for every day's delay until the information is providedto the applicant.

This penal provision may drive the PIO to act fast and provide the information sought for. It is a requirement that the name of the PIOshould be prominently displayed in all offices. If the name and address and telephone number of the PIO is not forthcoming in any organization, or the PIO is not available, the applicant can seek information by addressing his request letter to the PIO of the head office of the concerned department. If any application is submitted to the PIO who has no jurisdiction over the matter in question, then such PIO shall forward the application to the appropriate PIO.

Even after lapse of one month, if the information sought for under the Act is not provided satisfactorily by the concerned department or the department refuses to furnish the information, the aggrieved person can go on appeal against the decision of the PIO to the appellate authority who by default will be the official senior of the said PIO of the same department. If aggrieved by the decision of the Appellate Authority, the affected person may complain to the State or Central Information Commissioner which is an independent constitutional authority.

Information which affect the sovereignty and integrity ofIndia or security, strategic, scientific and economic interest of the state relation with foreign state and certain information as mentioned in Sections 8& 9 of the Act may be denied to be furnished.

By invoking the provisions of this Act by the public, the administrative machinery can be put on the right track which in turn can help in the reduction of corrupt practices.