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
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.