Housing dreams shatter, revenue hit

Housing dreams shatter, revenue hit
Deccan Herald

The Government Order is hitting the real estate agencies, middle income families and the government hard.

The State Government order imposing a ban on registration of residential sites, flats on agriculture and revenue lands, has dealt a severe blow to the booming real estate business in Bangalore.

The Government order in this regard has not only resulted in huge loss to realtors and land developers, but also badly hit many middle income families, who have bought plots to construct their dream house. In fact, the GO has even reduced the cash flow to the State’s exchequer. According to Mr S M Jamadar, Secretary, Revenue Department, the government would be losing several lakhs due to the new move.

The notification also bans the sale, gift, exchange, mortgage, agreement to sell, lease or assignment of a site on agriculture land. It also bans registration of site or a structure for which no layout plan is approved by the competent authority.

Real estate agencies had been buying revenue land in the periphery of Bangalore to develop private layouts. As people had to wait for several years to get a Bangalore Development Authority (BDA) site, majority of the site seekers would go in for sites developed by these real estate agencies -- knowing well that they are revenue layouts. Some of these agencies were directly buying agriculture lands from farmers and converting the land use pattern (from agriculture to others), only to form residential layouts.

Though the developers had been paying the development charges to the respective local bodies, not many of them have registered with either the BDA or Bangalore Metropolitan Region Development Authority (BMRDA). The gullible owners of these properties will now bear the burnt as their properties will not be registered under the new rule.

Left in the lurch

Thousands of such property owners, who used to register their properties at the Sub Registrar’s office, are now left in the lurch. Those who have just bought the property and are yet to register, are caught between the devil and deep sea -- as they can neither sell off the property nor can they ask the developer to take it back.

“I have paid development charges at Dasarahalli CMC for my property, paying property tax regularly, have a khatha issued by the CMC and paid beneficiary contribution for Cauvery water connection. But how fair is it to say that the property is illegal?”, questions Mr Puttaswamy, who owns a house on revenue plot here.

Similarly, land developers too are worried. “I have developed a seven acre land in Abbikere gram panchayat, six kms from BEL circle. But I cannot sell the plots here as per the new rule and so I am incurring a loss of Rs 4 crore,” said Sukumara Reddy of Plaza Real Estate Agency.

But, the revenue department is all set to strictly go by the new rule. Mr Jamadar said revenue sites are illegal and hence, it cannot be registered. “Site developers or owners have to approach competent authority like Urban Development or rural development department to develop infrastructure facilities. Later, the sites can be registered”, he added.

Asked whether elected representatives would support the new move, he said, “political interference should not lead to compounding of problems. They should help in sorting out the problems”.