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Deccan Herald » DH Realty » Detailed Story
Legal Angle
Banks do not fund loans on farm lands
Vatsala Dhananjay


Dear Madam,
I had purchased grant land from a Scheduled Caste person on the outskirts of Bangalore in 1995. This was alloted to the previous owner in 1957. The seller has passed away. Can the children or grandchildren trouble me by going to court? I am also planning to sell 10,000 sq ft each, to a few of my friends and build villas for ourselves. Could you please tell me the procedure I need to follow. Does it require a conversion? How do I sell it to non agriculturists as farm plots? 
Shivaram


Dear Shivaram,
The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act was passed only in 1978. So the grant order allotting the lands in 1957 has to be perused to see if the restriction on transfer of Scheduled Caste land was applicable. It seems unlikely. To sell farm plots to non agriculturists, you should get the same converted, if zonal uses permit it. Otherwise you can sell only to agriculturists. These restrictions do not apply in Tamil Nadu.

Dear Madam,
We purchased a plot in Devanahalli area and registration was completed in May 2006. The developer promised to get us khata after a month of registration. But even after five months he is not responding to our reminders, and gives elusive oral replies.
He has not responded to confirm updated tax payment till registration. Please advise on the action to be taken. Can we approach the consumer court for it to direct the developer to give us the khata certificate from the village panchayat?
Parimala


Dear Parimala,
If the developer has undertaken to obtain the khata in the sale agreement, then you can enforce this. However, if it is not a written obligation, it will be difficult for you to prove it. If the sale deed is in your name you can apply for and get the khata in your name at any time without the assistance of the developer.

Dear Madam,
I am looking into buying a small site at Kalkere village, near Hormavu. The seller is dividing his property into small lots of 30x40 and is selling it to interested buyers.  How do I go about ensuring that this property is not on the ‘radar screen’ of BDA, BMRDA or on any CDP?  The seller claims that this is a ‘non-green belt’ area and hence is safe to buy. Is there a website where I can verify that this site may not be located in an area that is subject to future plans of the government or any land development authority?  
S S Iyengar

Dear S S Iyengar,
Zonal uses are marked in the Comprehensive Development plans of the BDA and the Interim Master Plan of the BMRDA. Future plans of the government cannot be ascertained. However, acquisition status of lands can be verified from enquiries with BDA, KIADB, KHB, etc. You can also consult an advocate who can guide you through the process.

Dear Madam,
I wanted to purchase a plot on the IVC road near the international airport. The land is converted but does not have BMRDA/BDA/BIAAPA approval. It belongs to a well-known property developer. People are purchasing the same.
He says he will register in my name immediately after I purchase. Is it safe to purchase?
Madhusudhan H K

Dear Madhusudhan H K,
It is not advisable to purchase lands without BMRDA or BIAAPA approvals. It will be deemed to be an unauthorised layout. It will be more difficult to get bank loans. Resale may also be more difficult.
However, there may not be any immediate problem with registration (if land is converted) and building a house if you have your own funds.

Dear Madam,
I have purchased an apartment on Sarjapur Road. When I booked the site it was under Gram Taana, now it seems it is coming under CMC jurisdiction. Our apartment is approved by BDA for ground + 3 floors. My flat is on the first floor. Now the builder has constructed some penthouses on the top, that do not have BDA approval, so he is saying we may not get the occupancy certificate since BDA may not give it to him.
Later after some persuasion he has agreed to give us Possession Certificate for IT exemption benefits, but did not commit on OC. He also promised that he would get individual khatas transferred to our name along with key handover and PC. As I understand, PC is just a simple letter from builder to flat owner without much legal significance, but what is OC? What is its importance? Is it only for BDA areas or is applicable to CMC areas also?
Is getting a PC and khata sufficient or will the BDA demolish the entire thing since some portions are not legal and we don’t have a OC ? Does getting a OC for some deviations as in our case, possible?
Gururaj

Dear Gururaj,
The Occupation certificate is given for high-rise buildings only (more than ground + 3 floors), although it ought to be given for all buildings. In any case, only the portions on which there are deviations face the threat of demolition. Smaller deviations within 5% can be regularised on payment of compounding fees. If the area comes within the new BBMP, it could be regularised for violations before December 14. In your case, getting a khata is enough, if there are no deviations on your flat.

Dear Madam,
I have an offer to buy a free site allotted under Government order, DPC 15, DRH dated 13 May 1975. The original allottee is no more. His daughter got this property transferred to her name and also got the khata in her name after her father’s death. Later I got the information that her mother is alive and she has three brothers also. Please let me know whether this khata holder can sell this property. Do her mother and brothers still have any right on this property? What care do I need to take? Is there any problem if the allottee is an SC/ST?
Keshav S

Dear Keshav S,
You should get the mother and brothers as consenting witnesses in the sale deed to be executed in your favour. You should also check if there is restriction on alienation of the property for a specific number of years. The flow of title should be looked into by a lawyer to determine if there is likely to be any other problem.

Dear Madam,
I have decided on two flats, one near Hoody and the other in Kagadasapura, ground and 1st floor, respectively. I require your advice on the following:
1. What is the allowed deviation from the plan?
2. Who needs to approve the plan?
3. What is the implication on buying the deviated flat?
4. Once the bank sanctions loan, does it mean that the flat is legally permitted, because some banks are claiming the same?
Vijay

Dear Vijay,
The deviations have to be either regularised (if it is up to 50%) or compounding fee can be paid if it is up to 5%. The plan can be approved by BMP, CMC or BDA. The implications of purchasing a deviated flat is that you carry the risks of getting notices from the authority concerned. Bank sanction of a loan does not guarantee good title.

Dear Madam,
My father had 2 marriages. I have one real brother and one stepbrother. My mother is alive and stepmother is dead. All the brothers are married and working. My stepbrother wants to trouble all of us and is demanding 50% share in the ancestral farm. Whereas my father says he will give 1/3 rd the share to each son if they give him some amount on a monthly basis for his survival.
Otherwise he will give 1/4 th of the share to each son and keep 1/4 share for himself for his survival. My father is a retired person and does not have any source of income. Please advise on the following:
1)  My father is suffering from an illness. The doctor has suggested an operation. Can my father sell the property for the said operation?
 If yes, does he need permission or NOC from his sons?
2) Can he obtain a loan from bank on the farm? Can any son take an objection for the same?
3) Under what circumstances can my father sell the property?
Raj Deshmukh


Dear Raj Deshmukh,
As the property is ancestral, all the heirs have equal rights by birth, including your stepbrother. Your father can sell his portion without getting an NOC from his sons, but should offer them the first right of purchase. Banks do not fund loans on farm lands. Since everyone has equal share, the share of each person can be sold after partition. 

The author is a practising advocate specialising in real estate matters. You may e-mail your questions to 1.vatsala@gmail.com. Please mark your mail with `Legal Angle’ in the subject line. You may also write to us at: The Editor, Legal Angle, Deccan Herald, 75, MG Road, Bangalore - 560001.Disclaimer: All the answers provided herein are of a general nature. It is advisable to get specific legal advice after furnishing detailed history of each individual case.

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