Confusion galore over ban on property registration

Bangalore: The April 23 government Order banning registration of properties on non-converted agricultural land has led many Bangaloreans and builders to throw up their hands in despair. While citizens have complained that ‘old’ properties are also not being registered, builders stressed that often, one arm of the government did not know what the other arm was doing.

Take for example, S. Jacob whose consin owns a flat 3 Km from the Bangalore airport. “The flat is not a new one. But at the sub-registrar office, on one is willing to register it.” The problem is being faced in city municipal council (CMC) office as well. “We are getting hundreds of complaints from affected citizens,” an official in Byatrayanapura CMC said.

BDA commissioner M.N.Vidyashankar, however, is very clear on the after – effects of the GO: “There are no problems in registering properties with BDA approval. The GO is meant to make people comply with the law,” he stressed. “There are hundreds of fly – by – night operators, they must come within the law,” he said.

But the builders’ fraternity has another take on the issue. Kristal Group joint managing director Roy C.J., on his part, felt that government departments themselves thwart the whole process of conversion and later, plan sanction. “In Sarjapur, the revenue department has been doing land conversions but BAD and Bangalore Metropolitan Region Development Authority refuse to sanction plans saying the area is an ‘agricultural zone.’

Then, why does the Revenue department convert it in the first place,” he asked. Another developer said there are builders who do buy up agricultural land and sell it without proper conversion. “But in most cases, they have the sanction of the gram panchayats concerned. Why dosen’t BDA, a government body, act on the panchayats, which are also government bodies,” he wanted to know. He added that the scarcity of land with clear titles within the city has led to this profusion of illegal development on its outskirts.

Pressure: However, sources in the government said the order is being amended “because of pressure from the builders’ loddy.” The revised order is expected to be out during to be out during the first week of July.

Service tax comes into effect

Bangalore: The service tax on house constuction become effective from Thursday. The 10.2% tax is applicable on about one – third of the cost of construction – that is, on the service related aspects of construction. This translates to roughly 3.3% of the total cost of a flat (including car park).

“The tax will have to be paid on all construction done after June 15. So even if somebody has paid the full amount for a flat upfront, but some part of the construction remaining work,” says a leading developer.