Illegal buildings in Karnataka: Panel for Rs 1L penalty on officials, jail for builders

The Cabinet sub-committee looking into the issue of illegal layouts and buildings in cities other than Bengaluru has recommended jail term for new violations along with Rs 1 lakh penalty on both officials and builders, while suggesting seizure of illegal properties for which penalty isn’t paid.

The recommendations are the outcome of deliberations held by the panel tasked with exploring possibility of collecting tax from unauthorised properties in lieu of amenities paid for by urban local bodies (ULBs). Sources said chairman of the committee, Forest, Ecology and Environment Minister Eshwar Khandre, will place them before Cabinet.

“They will be placed before Cabinet soon, following which steps will be taken to amend the law,” sources told DH. The law will be amended to insert a provision similar to Section 144(6) and (21) of the BBMP Act to enable ULBs to collect taxes without legalising a property.

The new provision, however, will not apply to layouts and buildings that are not encroaching government land. Similar to BBMP, a ‘B’ register will be maintained to keep track of taxation.

The recommendations include a penalty of 2 per cent of property value up to Rs 1 lakh on officials who are found to be responsible for formation of unauthorised layouts and buildings.

”For builders and developers, jail term along with penalty of 2 per cent of property value up to Rs 1 lakh shall be levied. Provision should be made to transfer Khata of such properties to respective ULBs,” the sources said.  

“The ‘B’ properties shall pay tax prescribed in respective ULB. However, in first year an additional 100 per cent of that amount shall be collected as penalty,” the sub-committee has said. It recommended action against tax defaulters of such properties. “Provision should be made for seizing such a property. The pending tax should be collected on the lines of pending land revenue,” it said.

The panel said officials should make changes in land records (RTC) to reflect unauthorised structures coming up in ULB limits.