Category: Real Estate

AMENDMENT OF TOWN & COUNTRY PLANNING ACT, 2020 TO BOOST REAL ESTATE

The State Govt. has passed an ordinance on 22nd May 2020 to the TOWN & country planning act. Under the New Amendment act, The Developer shall provide a Provisional plan and Plan of phased development wherein the Developer/Builder can develop the project in three phases. The developer/Builder can develop the first phase with 40% development of the layout and thirty percent in the second phase & remaining 30% in third phase.

Thus after the area earmarked for roads, parks, Playground & other civic amenities of the entire layout area & after completion of the all infrastructure in first phase development the builder has to get the completion certificate from the concerned authority along with first phase development plan and then the developer/builder will be given permission to sell the sites of the first phase development.  The permission to sell will be given only after the registration of the Real Estate Project with RERA.  Similarly the Developer/Builder will be given permission to sell the sites/flat in the second & third phase only after the completion of all infrastructure in second & Third phase development.

ENFORCEMENT DIRECTORATE PERMITTED TO ATTACH THE ASSETS OF JP MORGAN TO THE EXTENT OF MONEY DIVERTED FROM AMRAPALI HOMEBUYERS

 

Last year Supreme court has ordered for the cancellation of RERA Registration of Amrapali group, as there were huge complaints of Diversion of the money paid by Homebuyers. Nearly 42000 flat buyers were waiting for possession of the flats after payment of huge amount of sale consideration. Nether the development was done nor flat was handed over to the Homebuyers.  Thus Home Buyers group has approached the Supreme Court in this regard.

In the meanwhile there were also allegations that the Amrapali group has diverted the Money to JP Morgan. The Supreme court has kept an embargo to the ED as to not to attach the assets of JP Morgan. That know the ED has provided Sufficient document in support of diversion of funds from Amrapali group to JP Morgan through the account. Hence Supreme Court has given permission to Enforcement Directorate (ED) which has identified that an amount of Rs.187 crores has been diverted to JP Morgan by Amrapali group from the amount paid by Amrapali Homebuyers in violation of Foreign Exchange Management Act & FDI Norms.

CHECK LIST FOR VERIFICATION OF LEGAL DOCUMENTS OF FLAT/PLOT/ SITES

CHECK LIST FOR VERIFICATION OF LEGAL DOCUMENTS OF FLAT/PLOT/ SITES

Title Deeds/ Mother Deed of the land

RTC/Pahani of land

Mutation Entry of land

IHC Certificate

Nil Tenancy Certificate

Family tree

Tippani

Akharbandh

Land Survey records,

Survey Assessment

Atlas

Village map

Index of lands

RR balbagh

Secondary reclass tippani

Endorsement issued by Assistant Commissioner under sec.79A & B of KLRA & under sec.4 of PTCL Act

Registered Partition Deed/s

Registered Sale Deed/s

Registered Gift Deed (If any executed)

Will/s(If any executed)

Mortgage Deed and Discharge Deed (If land was mortgaged for any banks to secure loans)

Encumbrance certificate of land/s for past 30 years

Tax paid receipts

Registered Joint Development Agreement Executed between Builder & Land lord/s

Registered General Power of Attorney Executed by Land lord/s in favor of Builder

Conversion order issued by Deputy commissioner permitting the conversion & use of agriculture land to Non-Agriculture residential use.

Conversion fees paid challan/receipt

Permission for change of land use

Building Approved plan And License

Plan sanction issued by Competent Authority

Commencement Certificate

NOC from BWSSB, BESCOM, KSPCB, HAL, BSNL, SEIAA, Fire Department, Airport Authority of India

House & Vacant Site register extract

Betterment charges paid receipt

Work Order issued by Competent Authority

Katha certificate

Completion & Occupancy Certificate

RERA Registration certificate

Encumbrance certificate of flat/Plot/Site

KARNATAKA LAND REFORMS (AMENDMENT) ACT, 2020 WHAT DOES THE AMENDMENT TO KARNATAKA LAND REFORMS (AMENDMENT) ACT, 2020, MEANS TO INDUSTRIES?

In Karnataka, No person or Company or Trust or any authorized person cannot purchase agriculture lands unless he is an Agriculturist. Thus any one who wants to purchase an Agriculture land must be an Agriculturist unless it is specified under the Exemptions mentioned under sec.109. AS such govt. has the power under sec.109 of Karnataka Land Reforms Act to exempt the and land/s from the applicability of provisions such as sec.63, 79A, 79B & 80 and those lands can be used for Industrial Purpose, Educational Purpose, Temples,  Housing projects, for Horticulture purpose including Floriculture and have specified units for each category under the provisions.

Prior to amendment any one who wants to set up an Industry in Karnataka, shall eb able to get an extent of 20 units only, by way of the Amendment to KLR act in 2020, govt has doubled the extent of land that can be utilized for Industries as 40 units. This change will give more land utilization capacity to the Industries and expand and Improve the production, utilization of land, labor and resources available to lead to more employment opportunities and growth in the economy of the state & country. (Unit” means [one acre (40.47 ares)] of A Class land)

Further to this the Purpose of Industrial development also includes Mining of Minor minerals, whether specified or Non-Specified and also includes the Stone Crushing activities under the Karnataka regulation of stone crushers act,2011. Thus it gives an open way to reopen the stne crushing Industries which were stopped since some time.

This amendment  makes it clear that all such lands which are approved by govt. with approval of state Highlevel clearance committee or State level single window clearance committee formed under the provisions of the Karnataka Industries Facilitation Act, 2002.

Further the company who has purchased the land with permission as mentioned above shall after utilization of the land for specific purpose for which it was purchased, it cannot use the land for the specified purpose for various reasons beyond its control than the said land with govt. permission for the utilization of the said land for same purpose. Thus this way the amendment gives a long way for the Industries to set up production along with the way ahead to get back the money invested in case if the Industry is not able to run for any reasons for which it was put up.

This amendment gives a boost for Industrial investment & development in the state further also contributes to the State & National Economy.

DISASTER MANAGEMENT ACT 2005

The Central govt. has brought in force the Disaster management act, 2005 due to COVID-19 Lockdown situation in the country to manage and handle the situation in a very strict manner to protect the health and well being of the citizens of the Country.

When the Disaster management act, 2005 was in force govt. has issued certain orders as to not to cause any damages. Certain orders such as the the Employers, Industries, companies shall pay the full salary, wages to the employees and laborers without any deduction. The landlords shall not ask the tenants to vacate the house, P.G, or any accommodation spaces as rents are not paid in the lockdown situation and it does not amounts to default under the eyes of law. Along with these certain specified orders like maintaining hygienic conditions in and around the house, to wear masks, maintaining social distances from the other people, staying away from the huge crowds, total travel ban etc were brought in force to curb the menace of the COIVD-19 spread &  to maintain the health of general public throughout the country.

With the Lockdown 4 in force in the country and While 80 % of the lock down restrictions have been eased by the Central govt from 18th May 2020, the above orders issued in pursuance of COVID-19 attack have also been  eased and except few restrictions others all have been removed as soon as the Lockdown restrictions have been eased in the country. Thus from know onwards the Employers, companies or industries shall not be under the obligation to pay full salary, allowances, & wages to its employees, labors etc., Thus all actions taken from 18.05.2020 will be valid and will not be covered as protection under the Disaster Management act 2005 which was made available during the complete lock down situation.

DO U HAVE TO PAY RENT DURING THE COIVD-19 LOCKDOWN SITUATION?

If u are a tenant and staying in a rented house, apartment unit, office space or staying in a P.G. Accommodation. Then you don’t have to worry, even if u have not paid the rent then your landlord cannot evict you from the place.

While the Entire country has come to a standstill because of the Govt. Orders imposed to Contain the Pandemic COIVD -19 and if your landlord is demanding rent from you for the lockdown period. Then what you can do in this situation?

In view of lockdown orders issued the Central Govt. there is also as order issued by MHA that the landlords shall not demand rent or force the tenants to be evicted from the place in the lock down situation. The central Govt. has invoked the provisions of Disaster Management Act to control the situation and in view of the same govt. has also issued an orders to the landlords as to not to demand rent. If your landlord is demanding you rent for the lockdown period and is either threatening you or trying to evict you, then it is illegal and he will have to face the legal consequences for these actions as per the orders passed by the MHA. Thus your landlord cannot force you or evict you for the nonpayment of rent during this lockdown period.

RERA – Relief to Home Buyers

Real  Estate Regulation and Development Act, 2016

The most awaited legislation namely Real Estate Regulation and Development Act, 2016 was passed and all the provisions of the act has come in force with effect from 1st May 2017. Thus the Home buyers who were suffering with the Builders having issues of Possession, Handover of the property to home buyers and the entire issues pertaining to the Real estate has been issued and regulated under this Act. The act aims to protect the Home Buyers from defrauding Builders/Developers by bringing in the transparency, accountability and regulation of the Real estate Sector in the country. this act also provides the Home Buyers various rights and reliefs to protect themselves from the High Handed acts of the builders, which was much awaited by the large sector of Home buyers since long time.

BENEFITS TO HOME BUYERS UNDER RERA:

Under this act each and every project has to be registered with RERA and it gives confidence to the customers, and they can cross check with the project and details of the project uploaded in the webpage of RERA, so that misleading customer will not be possible by any promoter/developer.

– Deposit of money in escrow account will make it sure to the customer that the money is safe and he will be paying only on the stage wise completion of the project. So the invested amount will be safe, as there cannot be deviation of money apart from the project for which it is kept, money has to be utilized only for the said project and not for any other project.

– The authority may on receipt of a complaint or on recommendation of a committee take action and revoke the registration of the project if there is wilful default of promoter/developer, willfully involved in unfair practices, willfully makes fraudulent practices, willfully falsely represents the grade/standard of project, willfully makes false and misleading representation, willfully makes advertisement to mislead.

– Upon revocation of registration the authority shall debar the project, promoter/developer from accessing the website, specify the names of promoter/developer in the defaulters list in the website, this gives caution to the other customers/investors about the project and promoter/developer. In case of revocation by the authority the appropriate govt shall take steps for the development work to be carried out either by the association or by the local authority as it deems fit.

– If promoter fails to give or complete possession as per the agreed terms of agreement then he shall be liable for compensation with interest at such prescribed rate of interest.

– The promoter shall be responsible to get the completion / occupancy certificate under the act. Otherwise the project will be incomplete.

– Each of the project registered with the authority shall be updated with all the documents and stage wise completion of the project. This gives customers a good support to verify the credibility of the project.

– The promoter shall not take advance amount on the project without registration of the sale agreement. Once the sale agreement is done cancellation of agreement can be done only in accordance with the agreement entered between promoter and allottee.

If any person makes an investment on the basis of the advertisement or false statement and suffers any loss, then the investment shall be returned with interest and compensated.

RIGHTS AND DUTIES OF HOME BUYERS/ALLOTTEE

  • The allottee shall be entitled to obtain information relating to sanctioned plans, lay out plans, along with other specifications as approved by competent authority & such other information as provided in the act, rules & regulations made there under or under agreement of sale signed with promoter.
  • The allottee shall be entitled to know stage wise time schedule of completion of the project, including provisions for water, sanitation, electricity & other amenities & services as agreed to b/w promoter & allotte in accordance with terms & conditions of agreement for sale.
  • The allottee shall be entitled to claim possession of apartment, plot or building as the case may be, & the association of allottes shall be entitled to claim possession of the common areas, as per declaration given by the promoter under sec.4[2][1][c]
  • Allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed & compensation in the manner as may be provided under this act, from the promoter, if promoter fails to comply or is unable to give possession of apartment, plot or building as the case may be, in accordance with terms of agreement for sale or due to discontinuance of his business as a developer under the provisions of this act or rules or regulations made thereunder.
  • The allottee shall be entitled to have necessary documents & plans, including that of common areas, after handing over the physical possession of apartment or plot or building, as the case may be, by promoter
  • Every allottee who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under sec 13 shall be responsible to make necessary payments in the manner & within time as specified in the said agreement for sale & shall pay at the proper time & place, the share of registration charges, municipal taxes, water & electricity charges, maintenance charges, ground rent & other charges if any.
  • The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-sec.6
  • The obligations of allottee under sub-sec.6 & the liability towards interest under sub-sec[7] may be reduced when mutually agreed to between the promoter  & such allottee.
  • Every allottee of the apartment, plot or building as the case may be shall participate towards the formation of an association or society or co-operative society, or a federation of the same.
  • Every allottee shall take physical possession of the apartment, plot or building as the case may be within a period of two months of the occupancy certificate issued for the apartment, plot or building as the case may be
  • Every allottee shall participate towards registration of the conveyance deed of this apartment, plot or building as the case may be provided under sub-sec[1] of sec 17 of this act.

Real estate regulation and development Act

RERA Act “Real estate regulation and development “ Act 2016, has come into effect on 1st may 2016. Under this new act customers/investors are given protection against defaulting and fraudulent promoter/developers. There by this act has intended to provide complete protection to the investors/customers. Under this act, each and every project which is measuring more than 500 sq mtrs or having more than 8 flats/apartment including all the phases/blocks have to be compulsorily registered with RERA. Unless such a registration is done no sale shall be conducted of the project. That such a project should have all approvals and permissions from all the concerned local authorities. With out such permissions such project will not be registered. Registration of a project will be done with all documents supported by a declaration. If there is any violation of the provisions of this act shall be liable for punishment. Thus promoter/developer cannot do malpractice or fraud in selling apartment. Plot or building of his project. Other wise the defaulter will be held liable for punishment.
Therefore this act regulates the real estate sector, thereby promises customers/investors assuring safety of their investment. It also boosts the real estate sector & those who are doing business with all compliances will stand and those without compliances will fail thereby it controls those doing business to grab money by fraud & malpractice will be out of business.

National Green Tribunal Order

Recently in one of the case NGT has passed an order imposing heavy cost for those land grabbers who have illegally acquired lake beds & sold it to third parties. It has also sought for restoration back the lands imposed certain conditions that the buffering zone around water bodies like lakes, raja kaluves have been increased & has also imposed a condition that the buffering zone around water bodies like lakes, raja kaluves have been increased & has also imposed a condition that the buffering zone should be utilized only for ecology & environment, the said buffering zone should be utilized only for ecology and environment, the said buffering zone. This is done for the purpose of sustainable development particularly keeping in mind the ecology & environment, the said buffering zone will be treated as no construction zone. This is done for the purpose of sustainable development particularly keeping in mind the ecology and environment of the area.

This judgment has particularly imposed a condition that the construction project should necessarily use only treated sewage water & this would be a condition pre-requisite for grant of construction permission. This judgement has made it a mandatory condition that the buffering zone should be from 75mtrs to 25 mtrs from the periphery of the water bodies depending on the type of water body like primary raja kaluve, secondary raja kaluve and territory raja kaluves.