Develop layouts first, then sell: Govt

Develop layouts first, then sell: Govt

In a bid to prevent realtors from hoodwinking property buyers, the State government has decided not to allow registration of sites in a layout till the developer completes the project as per the approved plan.

The government has decided to do away with the present system of releasing a portion of sites to the developers for registration soon after approving a layout.

Under the present system, the urban local bodies (ULBs), like Bengaluru Development Authority, and local planning authorities (LPAs) release sites to the developers for registration in the ratio 40:30:30.

Of the total sites in a proposed layout, 40 per cent is released to the developer as the first installment immediately after giving approval to the project. This was done to help developers mobilise funds to take up development works like constructing roads, underground drainage, culverts, shoulder drains, street lights and demarcation of sites.

The remaining 60 per cent is released in two installments as these development works progress. A large number of developers, however, were misusing this provision.

“ULBs and LPAs have been receiving complaints from citizens that developers were cheating them without providing infrastructure. The worst affected are those who are allotted sites in the first installment,” said town planning expert S B Honnur.

To curb this, the Legislature recently passed a Bill amending the Karnataka Town and Country Planning Act (KTCPA), 1961, making it mandatory for all ULBs and LPAs to release sites for registration only after the developer completes the project as per the approved layout plan.

The Bill is yet to receive the governor’s assent, said Director, Town and Country Planning, B M Tirukanagoudar. Interestingly, there is no provision under the KTCPA for releasing sites in installments. The Urban Development Department had introduced it by issuing a circular.  The system of releasing sites in three installments has been in vogue since 2014. Prior to that, ULBs and LPAs used to release sites in two installments in the ratio 40:60.
 

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