The Karnataka government has decided
to abandon the system of releasing the sites for registration by the developers
soon after the approval of the layouts. This was a bid to prevent the unfair practices of the developers and
the real estate agents to prevent them from being exploited and cheated by the
unscrupulous developers. To resolve this problem and to protect the common man
and the consumers the government has already decided to abandon the system of releasing
a portion of the land plot to the developer for sale and not to allow the
developers to register the sites till the project is completed as per the
approved plan by the local authority.
A properly developed layout can only be eligible for sale |
BMRDA has a little to do with Layouts Approvals
Presently the local bodies of the
urban areas and the cities like in Bangalore the Bangalore Metropolitan
Regional Development Authority (BMRDA) and the Local Planning Authorities
(LPAs) release these layouts and sites to developers for registration in the
normal ratio of 40:30:30. Where BBMP has a little role in playing a little role in framing the
rules and laws to approve these layouts. Just after the approval of the project
40 percent of the land is released to the developer as the first installment. This
was the norm to help the developers to gather funds and take up the development
work like the construction of the roads, drainage system, street lights,
demarcation of the plots and completion of other works like culverts,
barricades, walls, etc. The remaining 60 percent used to be released to the
developers of the layouts in successive installments as and alongside these
development work in progress. But unfortunately a very large number of the
property developers were misusing these provisions of the government. This is one of the reason why I came up with a site TGS Layouts Reviews and to know the the reality behind the projects and properties of this developer I prepared a public place to share feedback on the properties of TGS.
The town planning experts opine that
the developers were deceiving the Urban Local Bodies and the Local Planning
Authorities and there have been multiple complaints from the citizens and the
consumers that they were being cheated without providing the necessary
infrastructure promised. The most affected were the people who were allotted
the land plots in such layouts in the first installment. To curb such practices
and as an attempt to bring an end to such unfair practices there have been a
recent legislature which has been passed by the Karnataka Town and Country Planning
Act (KTCPA), 1961. This amendment in the bill makes it mandatory for all the Urban
Local Authorities and the Local Planning Authorities to release the land layout
for registration only after the completion of the projects according to the approved
layout plans.
The Director of the Town and Country Planning Mr.
B M Tiruganagoudar said that this amendment in the law is yet to obtain the
assent of the government. He also opined that there is no such provision in the
KTPCA for releasing the land layouts and the sites in installments. Earlier
this norm had come into being because of the Urban Development Department had
introduced it by issuing a circular. This system of releasing the land layouts
and sites has been in vogue since 2014. Before this the local authorities used
to release the land in two installments in the ratio of 40:60.
You may also like to read what are the misconception of property seller regarding to its pricing strategy.
That means people will lose opportunity to invest on real estate because most of the pre-launched projects were low cost as compare to a completed project. This rule is for the well for the citizen but still it has a lot of demerits, apart from losing investments options this will increase the cost of the project as well. Since developers were talking money from the public so they don’t have pay interest on that money. Now a developer has to take loan from the bank in interest which ultimately will rise the cost of the project. This is yet another burden for common people.
ReplyDeleteBiranchi, I would not say you are right rather I would say you are not wrong. This will have a definite impact on the price of the property but on a positive note it will protect customers from facing unwanted delays in projects completion and their investments will be safe. When ever a new rule is implemented there are two sides of it and if the good side is in the for of the mass than there is nothing to think on it.
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