Bengaluru city apartment federation flags violations in registration

The Bangalore Apartments’ Federation (BAF) has written to the Inspector General of Registrations and Commissioner of Stamps expressing concern over the wrong procedures adopted in the registration of apartment units, which has created confusion among flat owners.

Days after DH wrote about the legal issues surrounding the undivided share of apartment land, a number of flat owners approached revenue officials for clarity.

The BAF, however, said that it is a much deeper issue as the government has allowed registration of apartment units under wrong legal provisions despite the law laying out strict guidelines.

The Karnataka Apartment Ownership Act (KAOA) 1972 was enacted for the specific purpose of making an apartment unit an inheritable and immovable property. This will in turn allow it to be mortgaged by creating encumbrance for each flat. Section 9(1) of the KAOA also protects the flat owners’ share of the land by stating that “no encumbrance of any nature” arises after the deed of declaration is registered.

However, the flats are still being conveyed under the Transfer of Property Act 1882, which allows encumbrance for the whole land and not against an individual apartment unit.

“Our system of conveyance of apartment units is not as per the law. As per the law, apartment units can be considered heritable and transferable property only if they are conveyed under the provisions of the KAOA and only then can they have separate record for encumbrance,” Hareesh Sivaraman of the BAF said, noting that only such apartments were eligible for loan.

BAF General Secretary Vikram Rai said the government needs to wake up to the problem at the earliest.“There are historical errors that need to be corrected and it cannot happen overnight. We have been approaching senior officials in the government seeking intervention. Lakhs of people have purchased flats and it is the government’s responsibility to address their concerns,” he added.

In a letter to the Inspector General of Registrations and Commissioner of Stamps, the BAF said that even the stamp duty and fee for registration of the deed of declaration have not been notified.

Sivaraman noted that the existing law has all the provisions and all that the government needs to do was enforce them. “Registering the deed of declaration as mandated under the KAOA will resolve many issues,” he said.