JOIN USCo-op dept plans to relax land purchase norms for HBCSs
The Co-operation Department will seek a relaxation in the existing norms to ensure that house building co-operative societies (HBCSs) can directly purchase up to 75 acres of land from the owners.
The department has sought the government to amend Section 109 of the Karnataka Land Revenue Act for giving more powers to the deputy commissioner to allot additional land. The bill is likely to be introduced in the upcoming budget session of the State legislature.
According to the present provisions, the HBCSs, which intend to acquire 25 acres of land for their housing schemes, have to obtain permission from the registrar of co-operative societies (RCS) and the deputy commissioner. The societies have to approach the High-level Coordination Committee (HLCC) headed by Housing Secretary for purchasing land in excess of 25 acres.
It has now been proposed to allow house building societies to acquire up to 75 acres of land without seeking clearance from the HLCC. However, the department will insist on a housing scheme for the members to avail of this relaxation.
But, legal experts believe that the proposal to do away with HLCC approvals may turn house building societies into real estate agents.
“The amendments, if passed, will encourage the already defunct societies to start acting as real estate agents. Seventy five acres of land in a city like Bengaluru is a gold mine. It looks more mischievous in nature rather than do any good for the members,” advocate Sunil Dutt Yadav, who is handling a few cases with regard to HBCSs, said.
Further, it is felt that the proposed relaxation will lead to a spike in joint development projects, benefitting private developers more than the actual members of co-operative societies.
Stringent punishment
The department is also seeking severe punishment for HBCSs so as to hold them accountable in allotment of sites to their members.
Accordingly, a five-year imprisonment and/or Rs 50,000 fine is proposed for the office-bearers of HBCSs in case of violation of the Karnataka Co-operative Societies Act, 1964.
Furthermore, the societies will have to furnish the details of their projects to the department and the deputy commissioner. They will also be barred from entering into third party agreements for land purchase.
The department officials state that the HBCSs will have to submit to the RCS, a list of its members with their seniority, before allotment of sites. Accordingly, the senior members will be eligible for sites as opposed to those who register as associate members or new members.