Friday, 28 February 2014

An Article Regarding “The recent housing boom is clearly end-user driven”

  
The housing industry in India has been struggling since Independence.  The government has to be blamed for the current state of affairs, so too the builders and developers.  The problems are numerous, the solutions are obvious, but the choices are difficult and few.  India does not have any option, but to act strongly and immediately.  This willprovide the impetus to get the economy back on the track for double-digit growth.

The Present contribution of the housing construction industry in India is small when compared to developing and developed nations.  The sector contributes only 1% of GDP in India, compared to 3% to 6% in other developing countries.  If the above issues are addressed and the economies were to grow at 10% a year, the sector would grow at 14% a year and create over 3.2 million new jobs over the next 10 years.

The current boom in real estate is more end-users driven, reason being the tax concession for first-time home buyers, low interest rates, higher disposable income and disintegration of joint families.  The boom and bust of 1995 was driven by speculation and prices had touched unrealistic levels.  Even today’s peak prices pale in comparison to the peak of 1995.  The current prices are just about 10-15% more that the peak of 1995, if one considers inflation and interest for the last 10 years.  The prices look undervalued by about 10-12%.  So in the short term, the prices will rise by 10-12% and will stabilize thereafter.

Residential demand shows no signs of receding in spite of seemingly large supplyin the pipeline.  It is expected that there will be sustained end-use buying pressure.  The good news however is that the first few real estate venture funds have shown strong appetite for residential township projects.  Also, there has been huge pre-leasing activity in the retail sector.  One expects the strong currents of an upbeat economy to increase the presence of organized retailers (currently at around Rs. 30,000 crore).  This will certainly push the demand for malls and high street properties.

Currently, there seems to be a temporary balance in ready-to-use commercial space and demand.  Though occupiers would want space at Rs. 20-25 per sqft, they are not willing to compromise on quality.  This is good news for real estate.

However, occupiers would definitely pay a premium for any ready-to-use commercial space with sound infrastructure facilities for the IT and IT’es sectors.  There is a great need of developers who are willing to invest to create such facilities across the cities for companies who will be coming in to test the waters.

The Indian IT sector is expected to cross $28.3 billion in 2004-05.  The IT’eS segment is expected to record a 20% growth.  Both these sectors should continue to be primary drivers for real estate in most Indian metros.

With strong occupier demand pushing up land prices, especially in suburban and peripheral regions of metro and A-1 cities, companies have realized that this is an opportune time to maximize the value of their real estate portfolios.

One expects a consolidation of positions in the next six months in the market as all developers have stretched their capacities to the maximum.  The market may also see announcements of large projects with financing sourced from venture real estate funds. Prices are likely to remain firm with prices moving up marginally in the next two three months.





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Article Regarding: RECTIFICATION OFYOUR DOCUMENT


Rectification deed is a document executed between parties for the purpose of effecting corrections of the mistakes of facts / typographical errors which are committed in the original/principal deed.

In one instances, one Mr. Sampath purchased a residential site at Peenya, Bangalore for a consideration of Rs. 4 lakhs and got the sale deed in respect of the said property registered.  After receipt of the sale deed, he discovered that the dimensions of the property provided in the schedule annexed to the said sale deed, were wrongly stated as “East to West40’ and North To South as 30’” instead of “East to West30’ and North to South40’.” In another instance one Mr. Rajagopal had a similar problem in the sale deed executed by him, wherein the boundaries of property purchased by him were wrongly stated. The mistakes committed in the above two instances are too common and are rectifiable.

However, the case of one Mr. Narasimhan was found to be slightly different, as he has purchased two individual properties from a common vendor under a common sale deed and thus both the said individual properties had a common schedule, annexed to the said sale deed.  Mr. Narasimhan, subsequently was shocked to discover that encumbrance certificate pertaining to the said properties did not reflect their individual sale, but only reflected the combined sale under a single property schedule.

There are many such instances to be found wherein mistakes creep into sale deeds, which are not properly verified and compared with the title deeds, revenue records, and those are usually documents, which are not drafted by professionals/advocates.  Sometimes, the area of the property, survey numbers, location, boundaries, municipal numbers, description andnumber offloors, are wrongly stated.  Names of parties are mis-spelt, consideration amount incorrectly stated, easementary rights not being properly dealt with.  In many of such cases, the real intention of parties to the deed may not have been reduced into writing.

Such mistakes, errors in the deeds require to be corrected by execution of a supplementarydocument namely a rectification deed.  Rectification of deeds is supported by the various canons of law and is an equitable relief usually granted by the Court of Equity and is based on doctrine of mistake of fact.  In order to execute a deed of rectification, there must be mutual bonafide mistake whereby the original deed does not reflect the true intention of parties to the said deed.

More importantly the said mistake should pertain to facts only and not  a mistake of law. However, a notable exception to the said rule is in respect to mistake of foreign law which is considered as mistake of fact for the said purpose.  Sections 20 and 21 of Indian Contract Act deals with this aspect of law.

When the parties to deed, agree to modify, add, delete any terms referred to in any original deed executed by them on a prior dated, to bring out their true intentions, it is necessary to reduce such correction into a duly executed document and to pay the requisite stamp duty in order to get the same registered with the concerned authority.

Rectification Deeds are executed out of mutual consent of the parties to Main Deed, and all such parties to the original deed should jointly execute the rectification of the same. However, a problem may arise where such mutual consent is not possible.  In such cases, the recourse is to file a suit before a competent court under section 26 of Specific Relief Act 1963.  The said section provides for relief to parties facing the problem stated above, where the real intention of the party is not properlyreflected in the documents executed because of a bonafide mistake of fact or fraud, whereby either the party or his representative may institute a suit to have the said deed rectified.

The said section also empowers the courts to direct the rectification of an instrument, if the court satisfied that the deed does not express the real intention of the parties.  In such cases the original deed may be first be rectified and then the parties claiming rectification should seek sanction of the court to such rectification in his pleading and if the court so thinks fit, the same may be speciallyenforced.  This relief will be granted, only if it has been specially claimed in the pleadings.  However, if the said relief has not been specifically claimed, the court at any stage of proceedings at its own discretion may allow the party to amend its pleadings to incorporate the said relief.  This relief is entirely discretionary and when granted will not prejudice the rights acquired by a third party in good faith for value.

If the original deed is registered, the corresponding rectification deed also requires to be registered. The stamp duty and registration charges payable for registration of the rectification deed are as prescribed by respective states.

If the rectification deeds rectifies the mistakes of general nature, boundaries, spellings, etc the stamp duty and registration charges are Rupees One Hundred each, and if the rectification deed refers to the area, extent of the property, names of the executants, stamp duty and registration charges are as that of conveyance deed.




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Wednesday, 26 February 2014

Article Regarding “BASICS OF HOME LOANS”.


Once you think of buying yourself a house and go looking for that perfect dream house, only to find out that you are unable to finance your new house at the moment.  And you realize that you really want that new house.  You might at this point consider the option of taking a bridge loan. A bridge loan is the scenario wherein if you have enough equity in your present home, the bridge loan will allow you to avail of a loan so that you can make a down payment and buy your new house.  The only catch here is that the interest rates on the bridge loan are much higher than those on the home loans.  Another thing to consider is that it is short-term loan, and there are also costs and fees involved.  Therefore you might do better for yourself, if you consider applying for a home loan.  The procedure is simple and of course you have to meet a certain eligibility criteria.  Once you have identified the house that you want to purchase, you can go ahead and approach any financial institution dealing or disbursing home loans.

Though applying for a home loan may seem like a very difficult task, it definitely need not be that way.  Given below are some Home Loan Basic that you need to know before you go about applying.  The first step to getting a home loan involves filling up the application form of chosen financial institution along with the required documents.  Do remember that you will need to pay a one time processing fee at this stage.  You will also require some important documents to get through with the loan processing stage.  In case your are an employed individual, you will require verification of your employment form, your latest salary slip/salary certificate which outlines all deductions for at least the last 6 months.  Form 16 from your employer for the last 3 years.  In case you are a self employed individual, you will need a Balance Sheet and profit and loss account of the business/profession along with copies of individual income tax returns for the past 3 years as certified by a  CA.

You will also need a note, which gives the information on the nature of the business, year of establishment, present bankers, form of organization, clients, suppliers etc.  And of course you will need a statement proving your net worth as an applicant.  Once you are past this stage you will need to submit the property documents.  After getting the approval from the financial institution where you plan to borrow, the loan will be disbursed to you.

Benefits ofHome Loans:  You can easily avail home loan from various companies which offer home improvement loans to finance the cost of tiling, plumbing, electrical work, grills, woodwork, painting, compound walls and almost all improvements for your house.  In fact  it must be a good idea to avail of these home loans, because they offer a number of added advantages as well.  One of the most important benefits of taking a home loan is the interest rate that is allowed on the home loan.  Fixed and variable interest rate options are also available for home loans.

Many financiers also offer home improvement loans at the same interest rate as they offer the home loans.  Most of the prevailing interest rates fall in the range of 7.75% to 8.75%  There is usually processing fee of 1.00% to 2.00%  also that is involved.  The other benefit of taking a home loan is the security that is to be currently beingconstructed as the security for the home loans.  Of course, most banks and finance companies do not finance more than 85% of the cost of the property mortgaged.  Perhaps the benefit that is most used is that of the tax benefit.  The interest that is paid on home loans are deductible from the annual value resulting in a lower taxable income.  For self occupied property, interest to the extent of Rs.30, 000/- is  deductible from taxable income.  The maximum amount of fund that can be received through the home loans varies between 50%-100% of the total cost.

Of course the loan amount is also subject to the repayment capacity of the borrower.  The usual rule states that the sum of all the monthly installments a borrower has to pay should not exceed 40%-50%  of his gross monthly income.  Apart from the income and margin criteria, the applicant needs to be a salaried or self-employed individual. And it is important that the loan is repaid before the retirement stage, or before the person turns 65 years in case he/she is self-employed.  On an average the repayment term of the home loans can be extended up to 15 years.

Home LoanAgreement:  With the ongoing flurry of activity and festivity prevalent in the home loan segment of India recently, a large number of people, in the euphoria to acquire that dream house, tend to overlook some of the most important clauses in the home loan agreement.  However, what they don’t realize is that these clauses have a significant bearing on wide number of areas ranging from interest rates to repayment schedules.

Some of the simple clauses of the home loan agreement regarding to simple matters, such as how often the housing finance company resets interest rates in a year can make a considerable impact on the floating rate home loans.  The norms in the industry practices suggest that interest rates for home loan consumers are reset only when the bank’s prime lending rate is changed.  Therefore it is the frequency of these resets that is really important Some of the finance companies offer home loan agreements wherein the interest rates are reset in each quarter.  Alternatively, there are other companies who do the revision only once a year.  Sadly not many home loan consumers are aware of the clause related to the fixed rate home loans, which the financial companies some times insert in their home loan agreement.

This ignorance can cause the customers unintended losses in case of revision of the fixed rate home loan rates.  Most of the customers are not aware that this particular fixed rate clause in the home loan agreement, permits the financial institutions to change the loan’s repayment schedule and terms and conditions.


The financial institutions in a rising interest rate environment might exercise this option in order to safe guard themselves and in the interest of their own company.  This move is usually not in the best interests of the customer or the home loan seeker as the modification of the repayment schedule, terms and conditions might affect the overall repayment of the consumer.  The long list of terms and conditions of the home loan agreement, usually contain clauses which might possibly have a number of significant implications for the consumer and therefore it is important that the consumer is aware and makes an informed choice accordingly.  Courtesy : M.Hemdev.


Tuesday, 25 February 2014

An Article Regarding “Bad Roads – main cause for daily traffic jams in Bangalore”

 
Bangalore is the fastest growing city in the country, in Asia or for that matter in the world are very commonly heard statements about Bangalore these days. As a Bangalorian staying in the city for nearly five decades would certainly agree with the fact that the city is growing fast, particularly for past two to two and a half decade.  But unfortunately the growth as we Bangaloreans know is unscientific and   haphazard.  Everybody wants to come to Bangalore from distant places in the state as well as from far off places in the country in search of living.  As a result population has grown to the extent of almost about fifteen times compared to 1955.

Easy availability of comparatively quite and economical labour and skilled workers, the city attracted lot of industrialist to start industries.  Industrial growth during the 60s and 70s was at its peak.  Then came IT industry.  The city got its title silicon valley.  Centre’s liberalised industrial policy gave boost to IT industry.  Bangalore became the choice destination for investments, in view of its salubrious climate and its topography.  Today IT industry in Bangalore is on the top in the world map.  Yes, really Bangalore is developed, industrially too.

But, the city has not developed its infrastructure though it has grown vast to an unimaginable magnitude taking its population to six million.  The roads in the erstwhile city limits have remained to be the same as they were in 50s even today.  The roads in newly added layouts are not wide enough and are not to the required standards.  The roads are not tarred for long and are full of pot holes and are difficult for monitoring.  The footpaths are not worthy to be called user worthy.  The city’s development, without the development of infrastructure, is not a good sign. 

There is no proper planning for improving the roads which cannot take the present ever increasing traffic.  The traffic has increased abnormally with the growth of automobile trade and liberalised bank finances.  In fact the present situation it is said, almost every house hold in the city, in most of the segments, have more than one vehicle.  In the 50s one could count the four wheelers and scooters moving on the roads, unimaginable!

It is said that in Bangalore there are in all about 21.85 lakhs vehicle running in Bangalore’s sub standard roads.  Of these 16.06 lakhs are two wheelers.  Apart from this every day about 700 vehicles are being added.  The reason for such large number of vehicles is only because of poor and inadequate public transport.  In addition to the fast moving automobile vehicles there are slow moving animal driven and men driven vehicles like pushing carts, etc, causing congestion and traffic jams.

With the addition of 700 vehicles every month the situation will certainly be grim.  We are to some extent now immune to the traffic jams in almost areas of the city.  It is difficult to imagine the road scenes in the next couple of years.  To reach from one end to the other end of the city it takes not less than two hours. With the annual growth of vehicles population and the bad roads, the situation does not augur well.  But nothing can be stalled.  The people concerned with the development of the city’s infrastructure only have to rise to the situation and should be able to respond favourably to the expectation of the citizens.  If situation is allowed to continue in the present state, we may have to look to the almighty helplessly.  Hope that situation will not come.


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Monday, 24 February 2014

2bhk and 3 bhk Appartment available in Bangalore Kanakpura road @ Brigade Omega




Brigade Omega is right opposite Thurahalli Forest, a protected 600-acre green reserve. Rich in flora and fauna, this vast lung space will ensure that your living environment is that of peace and bliss.














Project name: Brigade Omega
Type of apartments:Appartment
Area range built up:1270-1720 Sq Ft
Price starting from:61 Lachs Onwards
City:Bangalore
Location:Kanakpura Road
Bed room:2BHK,3BHK




It is the city of not only native Sardars and Punjabis but entire Hindustan has entered the city.  The city is developing into cosmopolitan in nature.  Decentralisation of commercial activities in the city and increasing migration has resulted into mass scale development of the city.  Government of Punjab is serious about infrastructure, especially roads.  Chandigarh has developed international quality roads and now Amristar also going its way.  Lease rental for residential accommodation is rising.  Corporate guest house and night stay for city visitors are on rise.  Sanitorium and Dharmashalas are cheap accommodation available in the city.  Out right purchase of large homes are in offing.  Affordability is very high as compared to other cities.

Business of retails has revolutionised capturing the purchasing habits of the citizens.  Commercial complexes are selling on booking.  Rates are stagnated but sale is high.

Ahmedabad:


Eklavya international school, one of the best schools spread over 60 acres shows the lifestyle the city is witnessing.  Foreign banks and retail chains are glamourising the city.  Huge construction activities are on.

The distance between work place to home is shortened by new roads and enhanced infrastructure.  New townships in all the direction of the city has some which has stabilised the market Supply is more than demand.  Housing finance companies are giving best results to their head-quarters.

Commercial activities are also rising.  Service industry is taking great leap ahead of their usual trend.  Lease rental is rising.

Bhopal:


Aftermath of gas tragedy, the new Bhopal has learnt many lessons.  City builders are taking care of everything which human settlement needs to do.  One of the best constructions in Asia could be located in the city. The real estate market, although very slow moving as compared to other metros, is giving hopes to the city’s skyline.  The rates are stagnated for the time being but can boom any moment since State Government is planning huge infrastructure for the city.

Government is keen to bring business houses in the city. Retail chains already started functioning.  Decentralising and lack of sense for CBD areas in the city will lead to further drop in commercial rates for accommodation.

Cochin:   


After budget allocation for international port, city’s real estate got tremendous rise in property rates.  The rates are reaching just double since last two months.  Plots sale are in offing, commercial rates are reaching on historical heights.

Ready flats are now available with choice.  Middle size accommodations are in great demand.  Supply is limited for such accommodation.  City is all set to change its skyline.  Traders and export houses are dominating commercial market in the city.  Residential areas  are also having offices and culture to work from home is rising.

Commercial premises and office complexes are stagnated but shopping malls are rising.  Lease rental has no movement.  Union budget has created a good demand for commercial premises but it will take some time to capitalise.

Coimbatore:


Gandhipuram, Town Hall and RS Puram are best bet for better accommodation for budget buyers.

Rentals for residential units are higher then commercial premises.  Small-scale industries have set in small cottages and residential units hence demand for commercial premises are absorbed by residential units availability.  Power problem is on its peak in the city.  It is buyers market.  Rates are stagnated for now and no hope for any improvement. 

Shopping malls and retail outlets are in direct competition with shops in the main market area of MG Road.  Lease rentals have increased marginally in last fortnight.

Chennai:


The areas that form the heart of Chennai city and are active business centres such as George Town, Chennai Central, Kondithope, Annal Salai etc.  The rates have increased marginally in these areas.  Residential units in the city’s CBD area are turning into office premises.  NRI’s are in the market for investment.  Open plots are not available in primary market.  Water is still restricting the fair growth of the real estate market in the city.  The rates for a residential unit in posh locality are purchased at 3.5 lakh sqft. in the city.  T Nagar and Anna Salai Road are best bet still for home seekers ranging between Rs.1800/- to Rs.3200/- psf.

Delhi:


Delhi is not left with new land for development within the city.  Southern part and western Delhi is having great market.  The rates are almost highest ever and competing with cities of developed countries.  Total skyline of the capital has been changed.  Huge construction activities are on.  Farmhouses on the outskirt of the capital are costliest in the country.  Good time ahead.

The capital is expanding in its southern part.  Industrial belt of the city is touching Kosi.  Greater Noida and Gurgaon are part of the main city.  Residential colonies in Greater Kailash are best bet for settlement.  DDA has auctioned its plots in the city for historically high rate.  It is totally sellers market.  No rates could be recorded since huge variation between transactions in the same locality.  Rental accommodation market is still active in the city.  Old Delhi is hub for such home seekers.  The rates are still manageable on the southern side of the city.

Shops have no trend.  It starts from Rs.10,000 a sq.ft. Rental chains have spoiled the entire rental market for commercial activities.  Banks are also not behind.  Asia’s biggest deals in property in property took place last fortnight at Connaughtplace.

Kolkatta:


C. R. Avenue, Vivekanand Road, K. C. Sen Street, Lenin Sawani, Bipin Behari Ganguly Street, Tapsia Road, Bidhan Nagar Road and Khidirpur Road areas are set to change the sky line of the city.  Hectic development with ultra modern amenities are offered.  Housing finance companies are getting good business.

Flyovers and roads have changed entire chemistry of the city, as far as property rates are concerned.  Huge residential complexes are going to change the entire skyline of the city.  The rates are in primary phase and yet to be established.  Old city is still congested having no takers.  Young generation are on buying spree.  For Rs.2000 psf one can get a tailor made flat with ultra modern gadgets.

Market for commercial premises are still in demand.  Lease rentals are increasing.  IT industry in the city is fuelling in the funds for further developments.

Hyderabad:


Indira Park, Banjara Hills, University Road, Sardar patel Road and Nehru Nagar are some of the areas where hectic construction activities are on.  The rates have increased marginally in these areas.  Corporate guest house culture in residential colonies are some what holding the demand for residential market in the city.

Local demand is rising.  Paying guest culture is also rising.  Service apartments concept is proving its potentials in the city.  After a small recession, the city has come back on its fast track.

Mumbai:


Sale was slow due to monsoon, but as slow as compared with last year figures.  Housing finance companies are tempting to purchase.

Selling to corporate is becoming difficult day by day since these types of buyers wants total transparency.  Ratio to built up and total cheque payments are major hurdle for sale.  Rates are established for almost all the arrears in the city and not moving for now.

After Mall entered the shopping accommodation, rates are becoming impossible to trace.  One of the Mall at VileParle is for Rs.31,000/- per sq.ft.  Shops at Malad to Borivali, near station, are costing almost Rs.60,000/- a sq.ft.  Commercial complexes are getting good enquiries but there are no takers for old structures.  Projects waiting for sold out in this segment are still waiting for takers.  Lease for these complexes are not fetching more than Rs.60/- per sq.ft. a month.

Pune:


The real estate market is sluggish.  There are no takers for large flats.  The rates also declined in last fortnight.  Many property exhibitions are organised in this month but with very poor response.  Corporate are purchasing in large chunk.  Rental accommodation is dying in the city.  Investors have almost finished with their dead stock.  Fresh purchase from NRIs are very selective in projects.





Friday, 21 February 2014

3 & 4 BHK now Available in Bangalore Hebbal, at Brigade Caladium



The limited edition 3- and 4-bedroom residences at Brigade Caladium are designed for those who instinctively gravitate towards the finer things in   life. A sense of being cocooned in luxury will be a part of everyday life at Brigade Caladium.











Project name: Brigade Caladium
Type of apartments: Appartment
Area range built up: 3450-4450 Sq ft
Price starting from: Call for Price
City:Bangalore
Location:Hebbal
Bed room:3BHK,4BHK





Unauthorized developments may be classified as unauthorized layouts, unauthorized buildings, and buildingdeviations. Unauthorized developments take place when the demand for sites/houses is not fulfilled, unreasonable  planning regulations, complicated official procedures, high official  charges for approval, high unofficial expenditure, the greed of land owners / developers to make quick easy money, political interferences, long time taken for court decisions, etc.  All these problems are to be tackled and promotional atmosphere is to be created. The land lords / developers/ officials who violate norms should be quickly prosecuted to make them aware that they are not allowed to go scot free if unauthorized developments are carried out. The general opinion is that in Mumbai  procedures are simple, less harassment, better control, and land owners/ developers follow procedures.

In Bangalore the position is bad due to rapid expansion of City, heavy demand,  and good returns on real estate investments. Two lakhs and odd applications received by BDA for sites in Arkavathi Layout proves the high demand for sites. The number of encroachments in Arkavathi and High- Tech City schemes of BDA and 99% of building violations in 87 buildings of Koramangala are examples to prove that the situation in Bangalore is bad. Another attraction in Bangalore is higher F.A.R up to 2.50 whereas the maximum F.A.R in Mumbai City is 1.30. Inspite of higher F.A.R in Bangalore buildings come up with  additional floor area, additional floors, conversion of parking space, and conversion of open balconies. This is due to lack of enforcement by the civic agencies like B.D.A , B.M.P. and the municipalities.


Unauthorized layouts are those layouts which are formed on  agricultural lands without conversion of the agricultural land for non –agricultural purpose under the Karnataka Land Revenue Act, or without layout approval from the Development Authority / Planning Authority. such layouts are formed in Green Belt. The sites in these layouts are called revenue sites. Advertisements are made in the news papers about availability of D.C converted sites. These are sites in land converted by the Deputy Commissioner for non-agricultural purpose but the layout is formed without approval of Development Authority /Planning Authority. In some cases layout is approved but formed  completely changing the layout pattern. In some layouts parks and civic amenities are converted in to sites. There are layouts where the road widths are reduced and sital area increased.

The general public are not aware of the procedures for formation of layouts and hence purchase the revenue sites. The revenue sites developers show the ignorant buyers conversion order, katha , and tax paid receipts issued illegally by village panchayats and municipalities.

As the authorities and Government were not serious in controlling      unauthorized  layouts, many unauthorized layouts were formed with th e hope that sites in such layouts will get regularized by collecting meagre amount as betterment charges which is about Rs.100/- per sq mtr. After collecting, the City corporation and the city municipalities spend the amount for their general expenditure. Improvement works are taken up after many years and people in such layouts suffer without proper roads, water supply, under ground drainage and civic amenities. BESCOM provides electrical connections even in unauthorized layouts, which is bad. BESCOM should not give electrical connections to unauthorized sites to discourage unauthorized layouts. Government may have to issue a strict circular to KPTCL  not to provide electrical connections to revenue sites unless NOC’s are issued by Development Authority/ Planning Authority.

Government’s ban on registration of sites without conversion or without approval of layout by development Authority / planning Authority w.e.f 06.05.2005 may discourage purchase of sites in revenue layouts and revenue layout formation. Karnataka Town and Country Planning Act was amended  to provide for prosecution of promoters for developments  made without  approval of the planning authority. This will have to be strictly followed to discourage unauthorized layouts / developments. It is to be made clear by Government that conversion orders are to be insisted by sub-registrars  in cases where survey numbers are mentioned in the property documents and not for old municipal sites like; Malleswaram, Basavangudi, Chamarajpet, Cantonment localities etc which were formed during British regime. These extensions were formed by the Bangalore City Municipality and the question of producing conversion orders does not arise.
         

Unauthorized buildings are those which are built without sanction of building plan from the municipal authority.  Buildings sanctioned illegally by municipalities and village panchayats in unauthorized layouts are also unauthorized as per interpretation of the courts. The Supreme Court in the Judgment on high-rise buildings case of Bangalore (M.D. Narayana Vs Bangalore City Corporation and others) held that the buildings sanctioned by the Bangalore City Corporation in violation of the Zoning Regulations of the Master Plan are illegal and the additional floors sanctioned may be demolished. It is held that it is the responsibility of the owners of buildings to obtain building sanction strictly according to Zoning Regulations / Building Byelaws. The owners of such buildings cannot say that as the building is sanctioned by the city corporation / municipality, the buildings are authorized and legal. Many people/ builders/ architects are not aware of this legal interpretation. Buyers of buildings/ flats may have to note this point. 


It is common to see sanction of buildings by the village panchayats even  in municipal areas. The erstwhile HAL Sanitary Board used to sanction buildings violating the regulations and byelaws without any scrutiny. Manipal Hospital on Airport Road is one such building sanctioned by the HAL Sanitary Board. Many people deliberately get such sanctions and build as there is no restriction on set backs or floor area etc in such sanctions. The village level officials are not punished for such illegal building sanctions. BDA has powers to demolish buildings sanctioned by the village panchayats. There is a Task Force in BDA  with police,  revenue and engineering officials to prevent all unauthorized layouts / buildings in the mMetropolitan Area of Bangalore. But nothing happens and thousands of unauthorized developments take place in Bangalore. Clearance of BDA in the form of Commencement Certificate is required under the Town Planning Act to see that developments are not violating approved land use, road pattern etc. This procedure which is followed in Hubli- Dharwad and other cities is not followed in Bangalore.



Violation of land use in buildings is very common. Unauthorized commercial buildings are built on roads with heavy traffic, main roads, approach roads to localities, road junctions etc. No action is taken by BDA, BMP, and the municipalities. Only when petition against such land use violations are filed in the High Court, action is taken on such buildings. we have recently come across violation of land use in 87 buildings in Koramangala surveyed as per directions of High Court. 99 % of the buildings here violated land use by converting residential sites/ buildings to commercial use. The High Court issued directions on 01.09.2005 to remove the buildings violating land use and remove the deviations made violating sanctioned plans. Such directions by the High Court in petitions by affected citizens and civic concious people may discourage such violations in future. BMP has Junior Engineers / Asst. Engineers,  Asst. Exe. Engineers in each MLA constituency, and Executive Engineers, Superintending Engineers, Chief Engineers, and Enginer – in- Chief.  


What action they have taken when 99% of the surveyed buildings were put up in violation of land use and regulations. Are they helpless spectators? How many lakhs of buildings have come up in various wards of BMP.?, these are the questions to be answered by the City Corporation and BDA.

What action BDA Town Planning officials have taken  when they observed such violations during their inspections  in Koramangala.


When law abiding citizens request approvals on merit and  as per rule, will they get approvals easily without harassment? If agencies  do not take actions on land use and building violations ,the High Court may come to the rescue of law abiding citizens to enable planned development of the rapidly growing Bangalore City.
Apart from land use violations, the other violation made is reduction or not leaving  set backs, building more floor area by extending the building over the set backs ,or some times by building additional floors without sanction.

Parking space in basements of commercial buildings are converted denying the occupants parking facilities and increasing parking problem  in that area.  Conversion of parking spaces in basements are made even on important roads like; M.G. Road, Brigade Road, Commercial Street, St.Marks Road, Gandhi Nagar etc. Such complexes have come up in front of Corporation engineering offices also. The occupants of such complexes and other persons affected should file petitions in the High Court  similar to the Koramangala case. As otherwise, parking problem and traffic problems may increase making living in the City miserable. Already the traffic situation is so bad that it takes hours for employed people to reach their houses.

Another type of violation made is conversion of open balconies as additional floor area. Builders get more profits in such conversions.

Some press reports have given details of land use and other violations in the Country’s capital, Delhi. Times of India , New Delhi dated 28-09-2005 reported that seven residential colonies with 70% industries are being regularized. Three months time is given to them to form societies and submit layout plans for regularization. It is stated that shops and godowns  are treated as industry. This is wrong according to classification in Town Planning regulations. No manufacturing and service industry activity is involved in shops and godowns. These two may be allowed as permissible uses in industrial zone and not as industries as reported in the news paper.

It is also reported in that paper that 26 other colonies with similar violations have applied for regularization. It is stated that the Union Urban Development Ministry have decided to regularize these colonies. Urban Development Ministry which is expected to promote planned development has come down to the level of municipalities. The intention seems to be vote catching.

In another report of Times of India , New Delhi edition dated 28-09-2005, it is stated that in the posh Vasanth Vihar area rampant commercialization is observed. The Delhi High Court has directed the official of Municipal Corporation of Delhi to visit the area every day till the next hearing. The violator of the building should appear before the Municipal Magistrate every day. The Electricity Authority of Delhi was directed by the High Court not to give permanent connections to 47 buildings where Completion certificates are not produced. Demolition orders are passed in respect of 30 buildings in Vasanth Vihar area. The unoccupied portions of the buildings  are sealed and the occupants in the other portions directed to vacate to take up demolitions.

In Bangalore City also with large scale violations, such drastic actions are required to be taken in the interest of improving quality of life in the City.



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Thursday, 20 February 2014

"An open letter to Chief Minister about the Draft Comprehensive Development Plan for Bangalore recently presented"



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The other day I received this letter through E mail from Mr. Xerxes Desai, ex Chief Executive of Messrs Titan Industry who now has made Bangalore Beautiful his home.  He is a member of Tata Administrative Service.  His experience in urban affairs is vast.  He was with us in CIDCO (City and Industrial Development Corporation of Maharashtra) as a member of the planning team which drafted the master plan for New Bombay, Aurangabad and other cities of Maharashtra.  He was a member of First National commission for Urban Affairs.  Besides he has vast experience of creating many factory townships for Tatas.  He has first hand knowledge of administration of Jamshedpur, Town ship of Tata chemicals in Gujarat.  I have pleasure to present it to the learned readers of Real Estate Reporter as it raises many issues which require serious consideration.  


The revised CDP, even though it set out with lofty ideal of “keeping the city compact and not encourage urban sprawl and dedensification of crowded areas like chickpet” some where seems to have been derailed by politician, bureaucrats, real estate and other vested interests.  Some of the observations like reduction of green areas, creating a vast transformation zone around present Pettah area and increase in FAR have been commented already by my esteemed colleagues like Mr. Kodandapani, Ex Deputy Chief Planner, BDA.  Mr. Desai has rightly pointed out the emerging overbearing importance the city is getting at the expense of other cities and towns of the state.  If this trend grows one would agree with Mr. Desai that “ Bangalore will grow into a hideous megapolis and the rest of the state will be bereft of the stimulus of urbanisation.  Expressing the same view I wrote an article a few months ago in the same magazine an article “To congest or decongest”.  


When I went on an official visit to Gulbarga, when I spoke of dilapidated roads, drains, and lack of development to an learned academician of that space, he threw up his hand and sighed,  “What can we do”  There are 5 ministers from this district.  But once they go to Bangalore, they indulge in land grabbing and proxy real estate and forget Gulbarga. They are for all practical purpose are Bangaloreans.”  Another time when I was in Dharwad, friends complained about once in four day’s water supply and six hours in a day interruption of electricity.  In Mangalore it was about narrow roads, bad roads and lack of interest in completion of Hassan-Mangalore BG.

There is a lot of sense in what Mr. Deve Gowda, ex PM speaks.  But unfortunately his statements are given a negative slant drawn into controversy between ex CM and him.  In Bangalore IT czars, Bureaucrats, Policemen and Real Estate Developers have become town planners, road designers, traffic movement experts, etc.  And now French Experts!  Technical people are no where in picture.  Not that Bangalore lacks such people.  We have people like Mr. Wagale, Mr. Rame Gowda who have specialised in the subject, have practical experience, and have also been UN advisers.  But…………….please read on.


Dear Chief Minister,

I am taking the liberty of writing this letter to you regarding the Draft Comprehensive Development Plan (CDP) for Bangalore through these columns.  I am writing to you in this manner for the simple reason that I believe it improves the chances of it being read and, hopefully, of being taken seriously by you and the members of your administration.  I may be forgiven if I have erred in making this assumption.

As you well know, Chief Minister, everyone who has enjoyed a degree of prominence in public life wants to leave behind a legacy for which he will always be fondly remembered.  No one wants to be remembered for doing wrong things.  Unfortunately, Chief Minister, you are currently running that risk by being tempted to accord your approval to the Draft CDP – which is why I am writing to you.

Moreover, you are running the risk of being remembered for not just presiding over the continuing decline of the quality of urban life in Bangalore but of stimulating it.  While your predecessor in office is also to blame for the present state of affairs, more blame will attach to you because you have been given an unique opportunity to reverse that decline and your administration may well end up doing just the opposite.

That opportunity has been presented by the mandatory and once-in-a-decade revision of the Comprehensive Development Plan for Bangalore.  Here is  an opportunity to be remembered ever after as the person who set Bangalore’s development on the right course, not just by resisting the pressures of a few business heavyweights who have created jobs but failed to create homes or by resisting the demands of rapacious builders but by espousing the correct policies for urban development and prioritisingimplementation in an equitable manner for all of Bangalore’s citizens.

Unfortunately for the millions who have made, and will make, Bangalore their home and unfortunately also for your government as a consequence, the draft Comprehensive Development Plan that has been placed before the public makes a mockery of urban planning.

I dare to say this because I have some experience of urban planning.  I worked with the team that prepared the original planning concepts for New Bombay  in the 70s and was a member of the National Commission on Urbanisation that Rajiv Gandhi appointed while he was Prime Minister in the 80s.  I hope, therefore, that this letter will not  be dismissed as the ranting of a senior citizen miffed by unaccustomed new developments around him.

Let me start with the overarching view that your government and its political constituents need to take of urbanisation.  In a country where most people live precariously off the land and its inadequate agricultural produce, economic development and the escape from poverty is almost synonymous with urbanisation and the creation of jobs in the industrial and commercial sectors.  Urbanisation must therefore be looked upon as an instrument of economic development of the country, as the engine of GDP growth.  That requires both a national policy on urbanisation and a host of regional policies initiated by the States.

Two of the key elements of that policy are a balanced spread of urbanisation and a careful planning of the urban-rural interaction.  Quite unfortunately, Bangalore’s urban plan is based on the assumption that it must grow as fast as it possibly can without caring a whit about the impact of such a policy on the rest of the State.  In this way, Chief Minister, you will lose friends both in the city of Bangalore and outside it.  For Bangalore will grow into a hideous megapolis and the rest of the state will be bereft of the economic stimulus of urbanisation.

Just consider the facts.  Bangalore has been witnessing a phenomenal population growth rate:  nearly 40% per decade which is more than double the population growth rate for the whole of Karnataka.  The Comprehensive Development Plan joyfully assumes that this sort of urban growth will and should continue.  The planners project 10 million people living in Bangalore by 2020.  But the next biggest city in Karnataka today is less than 1 million.  One-third of Karnataka’s urban population lives in Bangalore and this ratio is sought to be increased.  That kind of lopsided development maximises poverty in the State and minimises votes for those who pursue such policies.

Planning a city, Chief Minister, is rather more than producing colourful land use maps and removing constraints on the building lobby as the Draft Development Plan has effectively done.  It is meant to be a major exercise in providing for work places and living spaces and in ensuring the quality of life for those who will people them.  It normally takes many years and involves multiple disciplines: not just a handful of town planners, but a whole host of them and, more importantly, an army of project managers, demographers, sociologists, social workers, economists, financial analysts, health professionals, educationists, transportation specialists, experts on water, power, sanitation, waste management, welfare, recreation, aesthetic design, law, communications, and so on.

The group that put together what is euphemistically called a Comprehensive Development Plan had none of these professional inputs.  In fact, the plan was prepared without the full involvement of even the municipal corporation, the transport authorities and the police, to name just a few – in fact, none of the agencies concerned with the delivery of goods and services to the people of Bangalore.

Incidentally, there is no reference to the Millennium Development Goals and the word “slum”, believe it or not, is prominent by its absence from the document.  Even the much touted Metro Rapid Rail System finds no place in it except as an afterthought: it appears in two maps while the text says “the metro rail does not concern the present period of study”.  Transportation planning and the planning of the physical and social infrastructure, especially for the most needy, form the core of urban planning.  They are not by-products.  As though these sins of omission were not enough, the plan has no cost estimates and no financial planning.  All this makes it a Comprehensive Fraud, Chief Minister, not a Comprehensive Development Plan.

Not only has the Planning Group ignored those who are most able to contribute to developing an urban plan (and there are many of international standing in Bangalore and in India) but the principles of town planning adopted by it fly in the face of everything that is currently recommended by experts as the best prescriptions for urban development.  Consider the following.

Experts typically recommend against the deliberate creation of monolithic megapolises, whereas Bangalore’s planners wish to pursue such an objective with megalomania.  Experts recommend satellite towns and polynucleated cities with multiple work nodes easily accessed by surrounding residential communities, whereas Bangalore’s planners are wise to create a large and dense central business district, gobbling up adjacent residential tracts.  Experts wish to minimise soul destroying urban crowding, whereas Bangalore’s planners wish to double the existing built form and population densities, in places even quadrupling it.  Climate has been a great advantage of Bangalore.  But we have seen the city’s micro climate deteriorate in the last three decades.  The radical increase in built forms, people and private transport will result in degradation of the micro climate to levels where Bangalore’s climate will cease to be an attraction.

Again, experts wish to minimise private vehicle traffic, whereas Bangalore’s planners choose to provide for what they believe is an inevitable explosion of cars.  Vehicle pollution is already unacceptably high and the Plan proposals will make a bad situation much worse.  Experts seek to make commercial enterprises provide for parking by visitors and employees on their own premises, whereas Bangalore’s planners have not only retained the wholly unrealistic provision of one car park for every 50 square meters but sought to reduce the provision for restaurants from one car park for every 25 square meters to one car park for every 75 square meters.  This has been done despite the fact that the actual need in the more expensive areas of the city, based on ownership data, is one vehicle parking facility for every 5 square meters, half for cars and half for two-wheelers!

Experts seek to avoid lining arterial roads with shops and offices on either side since that impedes traffic flow, whereas Bangalore’s planners wish to make every arterial radial road a commercial corridor, grandiosely referred to as “transformation zones” and “mutation corridors” and “commercial axes”.  The result will be nightmarish traffic jams, greater fuel consumption and even more pollution.

Experts seek to increase the green areas, whereas the planners of Bangalore, the garden city now only of our dreams, are savagely reducing the areas under parks, playgrounds and open spaces in virtually each and every planning district of Bangalore.  Experts seek to create distinct work and living environments juxtaposed to minimise motorised transport, whereas Bangalore’s planners wish to create mixed uses where work places can metastasise like cancers just about anywhere in residential neighbourhoods – and which have already so mushroomed even before changes could be made to land use laws.

Experts see the need to provide for the urban poor who constitute a majority of the residents of cities and who provide a host of essential services to the middle and upper classes, whereas Bangalore’s planners have provided for an unaffordable minimum plot size of 54 square meters (or about 600 square feet) that translates into a pukka building of 1200 square feet assuming a floor area ratio of 2.  What are the poor supposed to do?  Grab land and create slums in the absence of any real alternative?  Cities fail when they fail to deliver land to the poorest sections of society on terms that they can afford.  On the other hand, residential area planning has been done on the basis of 100 persons per hectare or 20 families per 10,000 square meters.  Even assuming that only 50% is net residential plots (the rest being devoted to roads, green spaces and utilities)  that works out to 250 square meters of land or 500 square meters of built space per family with a floor area of 2.  Bangalore’s planners must have assumed that the IT companies, who will be bringing in most of the migrants, will be paying their employees sumptuously.  Alternatively, the additional 135 square kilometres of residential land provided by the plan will accommodate vastly more people than has actually been projected.  Possibly by a factor of several times.

Experts wish to learn lessons from their past mistakes, whereas Bangalore wishes to accept what they call “ground realities” and have invented expressions like “flexibility” and ‘structured continuity’ for a process where de facto becomes de jure, where the law sanctions what the lawless have chosen to do, where a fait accompli is the citizen’s fate.

Experts also seek to learn from common citizens and from public and private institutions who are users or providers of civic services, establish popular acceptance and financial feasibility, build in performance metrics for the implementation process and devise measures for effective enforcement.  There is no trace of any of these in the document that your planners have prepared.

In short, Chief Minister, the Development Plan proposed to us represents the height of folly and a prescription for unmitigated disaster.  You must put a stop to it.  And now.  There is no way to improve this plan.  It needs to be scrapped.  Please let us start all over again.  And with the right people and the right attitudes, Bangalore, Karnataka and India will ever be grateful to you for that.  Bangalore has locational, climatic and cultural advantages which it would be a shame to sacrifice at the altar of commercial greed.

Believe me, Chief Minister,  India has brilliant urban planners, architects, engineers, sociologists, economists, project managers and other professionals – in fact, all the ingredients needed for outstanding city planning.  What is waiting is political will.  Rajiv Gandhi understood all this when he constituted the National Commission on Urbanisation.  I cannot believe that Sonia Gandhi’s or Manmohan Singh’s thinking can be very different.