Explaining the GO banning registration of properties

GO banning registration of properties
The Times of India explains what the Government Order specifies and to which categories of properties the ban applies

The two recent moves by the State Government - ban on registration of certain properties and ban on change of land use from agriculture to non-agricultural in Bangalore - through a Government Order (GO) has significantly affected buyers around Bangalore.

It may be noted here that most of the real estate transactions were happening in the peripheral areas of the city falling under different Grama Thanas and CMCs, and the GO is by and large aimed at these areas. So it is imperative to understand what the GO states.

Land that cannot be registered as per the GO which is in effect from May 6, 2005:

Site with or without building in an agriculture land which is not converted for non-agricultural purpose under Section 95 of Karnataka Land Revenue Act 1964
Site described as Grama Thana site (Form No 9 and 10) or one declared under Form No 19 for which rules are framed under Karnataka Municipality Act 1964, but not actually converted as such site

Site on a revenue land described as Grama Thana site or one with a building for which no layout plan approval and release certificate are issued from a local planning authority - BDA, BMRDA, BIAAPA, BMIC etc.

Site on a revenue land described as Grama Thana site or one with flats, industrial site, or commercial site without requisite permission under Section 79A and B read with Section 109 of Karnataka Land Reforms Act.

Transfer of only these properties is permitted:

Properties under the jurisdiction of Bangalore City Corporation
Properties allotted by Bangalore Development Authority
Properties in BDA approved layouts
Properties in layouts approved by other local planning authorities including BMRDA, BIAAPA, BMIC etc.

In the preamble of the notification, it is stated that many properties were registered based on fabricated documents, which do not pass on legally perfect title to the purchaser. In many cases, agricultural land was transferred by registration as nonagricultural land without actually converting it to a nonagricultural purpose in accordance with Section 95 of KLRA 1964 and Karnataka Land Grants Rules 1989. This has led to haphazard growth of Bangalore. So to put an end to it this notification has been issued.

Ban on change of land use


It may be noted here that if an agricultural land is to be used for non-agricultural purpose, the land needs to be converted for that purpose under Section 95 of the Karnataka Land Revenue Act. But with the recent GO on the ban of change in land use in Bangalore, no agricultural land can be converted until further directions. The GO issued by the Revenue Department states that, 'the land acquisition proceeding of the land acquired by the BDA in the Arkavati Layout has been cancelled by the High Court in writ petition No. 26601-4 of 2004, on 15-04-2005. The government is taking action to file appeal regarding this. Therefore, until passing of further orders, the government shall not consider the applications received seeking change in land use in Bangalore City and surrounding areas.

The BDA Commissioner M N Vidyashankar said, "the government wanted to stop haphazard and illegal development, so this was the best way to stop it. Even today in BDA we do register around 100 properties everyday that qualify under the new GO. All that the government wanted was to regulate orderly development. We are sanctioning private layouts within 45 days, where the developer provides 50 percent of the land for civic amenities and adheres to other norms set by the authority". Further, he says that registration of all properties falling under the jurisdiction of Bangalore City Corporation, allotted or approved layouts by BDA, layouts approved by other local planning authorities like BMRDA, BIAAPA, BMIC etc is on.

On the other hand, buyers have suffered in two situations. Buyers of sites in unapproved layouts are the worst hit. A seller obtains a 'no objection certificate' from the BDA, which only means that the authority has not notified the land for acquisition. It is not to be understood as sanction for making a layout. Based on such 'no objection certificates', people paid advance amounts and made preregistration agreements. Consequently, the GO came into force and stopped them from registering the property.

Buyers of flats are another lot who have been hit. The registering authorities are not registering the conveyance of any flats, be it in new BCC areas, CMC areas or in Grama Panchayat areas, unless the site's release letters from planning authorities including BDA and BMRDA are produced. Banks have also issued circulars not to finance such flats.

Advocate S Selva Kumar says, "confusion on procedures and ambiguity in regulations has led to chaos. The planning agencies like BDA and BMRDA should adopt single window system to receive applications, approve plans of layouts, and clear them within a stipulated time.

There must be transparency in the system. The public and promoters should be able to access, and know the guidelines and stipulations for formation of layouts".

In a nut shell…

When registration is not possible

Site or building on an agricultural land, which is not converted for non-agricultural purpose. Grama Thana sites, sites on revenue land with or without building for which layout plan approval and release certificate have not been issued by a local planning authority including BDA, BMRDA, BIAAPA, BMIC etc.

When registration is possible


Properties falling under the jurisdiction of BCC and previous BCC areas, properties allotted by BDA, properties with 'release of site' papers in BDA approved layouts, and properties with 'release of site' papers in layouts approved by other local planning authorities like BMRDA, BIAAPA, BMIC etc.

Change of land use


Government will not consider applications seeking conversion for change in land use in Bangalore City and surrounding areas till the Arkavati Layout case is over