'Landless' HBCS invites applications for site allotment

 Several house building co-operative societies (HBCS) in the State, mainly in Bangalore, have come under the scanner for various irregularities.

But, that has apparently not deterred such societies from violating the model bye-laws for HBCSs and provisions of various Revenue Acts.

In one such case that has come to light now, the Central Government, Telecom & Information Technologies Employees’ Housing Co-operative Society Limited has invited applications for allotment of sites, even though it is yet to purchase land to form a layout.

The registered name of the Society implies that its members should be employees of the Central Government or the Telecom and Information Technology department.

According to information available with Deccan Herald, the Society, in its application forms has mentioned that it has involved a builder/developer (read middleman) to purchase and convert the land, which it has identified in Devanahalli. But, Section 54 of the model bye-laws for HBCS prohibits societies from appointing agents/middlemen to transact the business of the Society.

When this reporter posed as a buyer and approached M Palaniappan, vice president of the Society, he said: “We cannot buy agricultural land, so we are using a developer (Benaka Enterprises) to buy the land. Then they will go for necessary conversion before handing it over to us, after which we will allot sites to you.”

However, this is in violation of the government order dated August 29, 1985, which states that such conversion of land for a HBCS is “highly irregular and much against the law.”

The Society has also invited applications from associate members even before allotting sites to all of its 1,300 members. While there was a ban on associate members getting a site from such societies, the State Government in 2010 passed an order stating they can be given sites. Incidentally, the matter is now before the Karnataka High Court.

Asked whether an associate member could get more than one site, Palaniappan said: “No, you can get only one site. But, we can give sites to your family members.” However, Section 10 (a) of the HBCS bye-laws prohibits allotment of more than one site to a family.

The Society is collecting money at the rate of Rs 695 per square feet. Palaniappan explained: “We are collecting it on instalment basis. First, you will have to pay us Rs 180 per square feet and the rest in instalments. Once you pay the fourth instalment, we will allot you the site.”