ABOUT THIS EBOOK

Copyright

Buying, Investing & Renting Property in Bengaluru, ebook

A Citizen Matters guide
Citizen Matters, Bangalore’s interactive newsmagazine.
Buying, Investing & Renting Property in Bengaluru
First published by Oorvani Media Pvt. Ltd., 2014, Bengaluru.
Copyright © Oorvani Media Pvt Ltd
ISBN: 9788192566962
Price: Rs. 125
ALL RIGHTS RESERVED. No part of this work covered by the copyright
herein may be reproduced or used in any form or by any means – graphic,
electronic, or mechanical, including photocopying, recording, taping, Web
distribution, or information storage and retrieval systems, without the prior
written permission of the publisher.
For permission to use material from this text or product, contact:
Oorvani Media Pvt. Ltd.
Phone: +91804173 7584
Email: edit@citizenmatters.in
Web: www.citizenmatters.in/buy-property-in-bengaluru
Disclaimer: This book does not constitute nor is a substitute for formal legal
advice. Also, the information in this guide book is local government-related
has been verified at the time of publishing. However there may be changes in
phone numbers, email ids, government processes etc. Readers are requested
to note this. Key updates to this book will be posted online on a regular basis.
The book’s home page is at: www.citizenmatters.in/buy-property-in-
bengaluru
First words of praise

An excellent guide to property matters in Bengaluru, any one intending to

purchase or sell an immovable property must read this before venturing to do
so. It has details not only about the relevant rules and procedures but about
the precautions one should take in property transactions. Citizen Matters must
be complimented for bringing out this extremely useful publication.
Dr. A. Ravindra
Former Chief Secretary, Govt. of Karnataka Chairman, Center for Sustainable
Development

Bangalore is growing at an unprecedented pace consequently a complex

relationship between buyer and seller is emerging. The scientific growth has
to be associated with transparency but same is being found wanting. The
information of relevant provisions of statute rules and regulations is
definitely going to make the relationship much simpler.
This effort by Citizen Matters to bring out a compendium is a very welcome
step and will enable the exercise of such transactions a happy event rather
than a fretful journey in the realm of litigation.
Dr. Rajvir P. Sharma, IPS.,
Additional Director General of Police, Bangalore Metropolitan Task Force, Bangalore.

Home has been one of the primary needs of humans. Real estate has become
an attractive investment option too. With the prevailing trajectory of
urbanisation, urban real estate will continue to remain attractive and
remunerative.
Our laws on the subject are sadly complex and often unintuitive. Complex
issues on the subject have been presented in an easily understandable way in
this book. It should serve as a primer, especially for the uninitiated.
Bangalore has been one of the fastest growing metropolises in the country. A
number of expatriates as well as people from the other states are increasingly
making this city as their new home. I am sure this book shall also help them
to take an informed decision on buying property.
Brijesh Kumar, IFS
Chief Conservator of Forests, Lakes and Horticulture Wings, BBMP

Purchasing a home in Bangalore can be a minefield of legal and regulatory

issues. Most first-time investors have little idea of all its complexities.
Citizens Matters has done a great job in addressing all these concerns in this
informative guidebook. I congratulate them on a very fine effort.
Laila T. Ollapally
Senior Lawyer, Bengaluru

I am glad to welcome such an informative and supportive guide book in the

real estate field for Bangaloreans. While buying property, this book helps
with tips, ‘dos and don'ts’ and precautions. It has the A-Z of property buying
compiled by professionals in educative language. It also helps real estate
professionals like me.
Santosh Bhurani
Member Bangalore Realtors Association of India, member Confederation of Real Estate
Associates (India), and head, Bhurani Real Estate
Why this book?

Dear Reader,
It is everyone’s dream to own a home and live in it. In rapidly urbanising
Indian cities, especially Bangalore, without the right homework, chasing that
dream can result in far more stress than expected.
The interconnection between politics and corruption is widespread
throughout the world, as you know well. In India, land management is at the
centre of much of the obscurity, inefficiency, and corruption that we see in
government services and approvals to citizens and real estate developers
alike. There are many cases of fraud which come to light from time to time.
A range of documents is needed at various stages to proceed with a property
deal. Regulations, rules, documents, and a maze of procedures can stump you
or complicate matters if you are not well prepared. Many of us are unfamiliar
with what is required until we actually face such a situation. We are also
prone to commit mistakes if we do not ask the right questions at the right
time.
Having a lawyer does help, but the more aware we are as citizens and
consumers, the better it is, given the lakhs and crores of rupees involved in
buying, selling, or investing in property.
This first-of-its-kind guidebook, launched in India for Bengaluru, will
prepare you better as you go into a deal. The book is also a good reference for
you. It will help reduce the unwanted stress which comes from not having
this kind of information handy. It will ultimately help buyers, sellers, and
investors make better decisions.
The book has gone through an elaborate technical and language review. We
do hope mistakes and errors (if any) are few and far between. We would be
happy to receive your feedback and error-spotting reports at
edit@citizenmatters.in, and we will acknowledge this in the second and later
reprints.
Buying, Investing and Renting property in Bengaluru is our third guidebook
for Bangaloreans. Living in Bengaluru, the quintessential citizen guidebook
released for 2012–13, was heartily welcomed by citizens, as evidenced by the
fact that it sold (out) at over 150 outlets in the city as well as online. Get to
Know Bengaluru Better, the ‘places of interest’ guidebook is also doing very
well after its release in October 2013. We hope you like our work and will
continue to track us as we release more guides on print, web, and mobile
platforms.
With best wishes,
Subramaniam Vincent
Oorvani Media
Bengaluru
About Citizen Matters and Oorvani
Media

Oorvani Media Pvt. Ltd. is the publisher of Bangalore’s exclusive Citizen

Matters web-newsmagazine, online at citizenmatters.in. The Citizen Matters
newsmagazine currently reaches around one lakh Bangaloreans online.
Started in 2008, Citizen Matters has carried out award-winning and
internationally acknowledged city reporting on Bangalore in a pioneering
format which integrates professional and citizen journalism. Our reporters
have won three journalism awards in just five years.
Oorvani Media also publishes guidebooks for Bangaloreans under the Citizen
Matters brand. This guidebook on property in Bengaluru is a compilation of
writing by Citizen Matters’ journalists and experts. The work of nine authors
has been edited and curated to create this guide.
Living in Bengaluru was Oorvani Media’s first guidebook. Launched in
August 2012, the book been a resounding success in the city. Our second
guidebook, Get to Know Bengaluru Better, was launched in October 2013.
Buying, Investing and Renting Property in Bengaluru is the third guidebook,
being released in March 2014, and there are more to come.
In the course of our journalism, we have often found that guides based on ‘do
it yourself’ articles and ‘frequently asked questions’ are a popular and useful
approach to break information bottlenecks on public matters in Indian
society. We feel journalism is good for not only for producing news, but also
to help citizens and guide them through the complex urban sphere which our
cities have become. This is the primary reason for these guidebooks. These
guides will also appear later this year on mobile platforms for handy access in
the as-you-go mode. We hope you find this book informative and valuable in
your search for your dream home.
Guidebooks
citizenmatters.in/living-in-bengaluru
citizenmatters.in/get-to-know-bengaluru-better
citizenmatters.in/buy-property-in-bengaluru
The Citizen Matters newsmagazine, Bengaluru
citizenmatters.in
twitter.com/citizenmatters
facebook.com/citizenmatters
How this book is organised

This book covers a broad range of questions and topics to help buyers,
sellers, and investors in residential properties in Bengaluru. All types of
properties including land, sites, plots, apartments, and apartments and villas
in ‘gated’ communities are covered. We have compiled checklists, Q&A
sections, and a variety of different tables to guide you.
You will notice in the Table of Contents page that there is a grouping to the
chapters. The following are the sections.
Understanding the fundamentals
This group of chapters perhaps form the foundation to the entire book. Even
though several other chapters are explanatory too, this section deals with the
basics of land and property documentation regarding Bengaluru which you
need to know about when you buy or invest.
Properties in communities
This section covers buying or investing in apartments and in homes (or villas)
in the so-called ‘gated’ communities. Such communities have mushroomed
all around Bengaluru with their own security and maintenance. Buying flats
and homes here is not exactly the same as buying a standalone house or a site
on a public street; there is more involved. Developers make expanded
offerings for these homes, and hence, you need to know more about
purchasing such homes.
Buying and geography
Why should geography even matter? It makes a big difference because some
areas of the city may be flood-prone and unpredictably at that. Adequate
structural protections are worth investigating in this light. This is not all;
Bengaluru’s airports dictate the maximum vertical height of buildings, and
buying flats in high-rise apartments is risky if the builder violates aviation
rules to add extra floors above the permitted height. Most developers may not
do so, but given the spate of recent litigations in the Karnataka High Court,
the risks are real. For the first time in India, we are blowing the lid off urban
development’s best-kept secrets for Bangalore. This is cutting-edge material
you will not be able to access anywhere else easily.

Legal/illegal issues and deviations

Negotiating with deviations in construction is a tough task. When you make a
real estate investment, (particularly if you buy into an already developed
community or constructed home), you need to know what to do if there are
deviations from the sanctioned plan involved — whether it is an apartment
floor plan or a massive layout plan or both. Until this year, the nature of
deviations has not mattered much. But the Akrama Sakrama law has changed
this perception. When brought into force, this law is likely to influence the
final cost of ownership for ‘deviated’ properties.
All about registration
This is the section you need to read through first if you find yourself picking
this book up when you are actively selling or buying a property. It has both a
document checklist for you and a fee breakup regarding the costs involved.
This section also serves as a quick, handy reference to any buying or selling
of real estate.
Common mistakes
If in the entire book, you only want to read one chapter right after you take
the book home and want get to other chapters later, then this is that chapter. It
helps you with become familiar with a variety of different mistakes which
people make at different times in different deals. Some of these mistakes can
usually be avoided with the help of good lawyers. Still, common mistakes in
real estate form an expansive list, and so we hope you make good use of this
section.
Eye on the money
A guidebook like this will not be complete without a section addressing
numbers-savvy people as well as those who want quick access to the
financial details around real estate transactions. In this light, we have covered
capital gains taxes, bank loans, property tax, betterment charges, and more.
Most importantly, after over a decade of confusion, the Supreme Court and
the Union Ministry of Finance finally settled the vexing matter of value-
added tax (VAT) and service tax (ST) for under-construction property sales.
We have captured the essence of this in terms of applicable VAT and ST
rates for your property deals, including where it does not apply.
Other aspects
This section serves up a set of other useful chapters. If you are buying from
someone who came to own a property through a gift deed, understanding the
concept of a gift deed and its practical ramifications goes a long way in
simplifying the issues involved. You can also use this information to execute
a gift deed yourself. There is also a special chapter on buying a BDA flat,
with the most updated information from the BDA at the time this guide went
into publication. And last but not the least, we provide a quick peek into the
land mafia operating in the city. There is no cause for widespread alarm here,
but awareness always helps.
Bonus section on renting
Renting is the most common housing activity as people settle down in their
early career. Most buyers would have rented for some time until they move
into their own house. Some buy property to rent it out for income. A book
like this would be incomplete without a chapter on the basics involved in
renting. There have also been recent changes in the rental agreement on
stamping fees, little known to most renters.

Appendices
We have inserted some elementary information here that you can refer to
understand related concerns that come up when you buy property. For
instance, water is the top issue in the city. Backup electricity arrangements in
gated communities involve more than meets the eye, even though every
developer may promise it. Waste management is a key issue in Bengaluru
today, and you can ask questions from sellers about this too. The appendices
provide all this information and more.
Transacting real estate is not easy for the common man, and thus far, there
have been no easy guides. In this light, we have paid careful attention to how
this book is organised, and we hope it serves you well.
Please note one important point: this book does not provide legal
advice, it is only a guide. It does not cover the hundreds of unique cases
which emerge in Bangalore which are the result of a complex mess of
regulations, loopholes, and conniving officials and citizens or developers.
However, it will prepare you to do your diligence well. It is also not a
substitute for a good lawyer. It is a guidebook that unshackles vital
information and lets it be easily accessible to buyers, sellers, and investors.
Abbreviations

No., Abbreviation, Full form

1. AAR: Average annual return
2. BBMP: Bruhat Bengaluru Mahanagara Palike
3. BDA: Bangalore Development Authority
4. BESCOM: Bangalore Electricity Supply Company
5. BIAAPA: Bangalore International Airport Area Planning Authority
6. BMICAPA: Bangalore Mysore Infrastructure Corridor Area Planning
Authority
7. BMP: Bangalore Mahanagara Palike
8. BMRDA: Bangalore Metropolitan Region Development Authority
9. BWSSB: Bangalore Water Supply And Sewerage Board
10. CA: Civic Amenities
11. CC: Commencement Certificate or Clearance Certificate
12. CDP: Comprehensive Development Plan
13. CGT: Capital Gains Tax
14. CIBIL: Credit Information Bureau (India) Limited
15. CII: Cost Inflation Index
16. CIR: Credit Information Report
17. CITB: City Improvement Trust Board
18. CMC: City Municipal Council
19. DoA: Deed of Apartment
20. DoD: Deed of Declaration
21. DRC: Development Rights Certificate
22. DTCP: Directorate of Town and Country Planning
23. EAAS: Extended Aeration Activated Sludge Process Reactor
24. EC: Encumbrance Certificate
25. EMI: Equated Monthly Installment
26. EWS: Economically Weaker Section
27. FAR: Floor Area Ratio
28. GFTS: Government Flying Training School Jakkur
29. GPA: General Power of Attorney
30. HUF: Hindu Undivided Family
31. IPC: Indian Penal Code
32. JDA: Joint Development Agreement
33. KAOA: Karnataka Apartment Ownership Act
34. KHB: Karnataka Housing Board
35. KIA: Kempegowda International AIrport
36. KIADB: Karnataka Industrial Area Development Board
37. KOFA: Karnataka Ownership Flats Act
38. KREDL: Karnataka Renewable Energy Development Ltd.
39. KSPCB: Karnataka State Pollution Control Board
40. LPA: Local Planning Authority
41. LTCG: Long Term Capital Gains
42. MAOA: Maharashtra Apartment Ownership Act
43. MOFA: Maharashtra Ownership Flats Act
44. MPC: Metropolitan Planning Committee
45. NABARD: National Bank for Agricultural and Rural Development
46. NHAI: National Highway Authority of India
47. NHB: National Housing Bank
48. NOC: No-objection certificate
49. OA: Owners’ Association
50. OC: Occupancy Certificate
51. OWC: Organic Waste Converter
52. PDO: Panchayat Development Officer
53. PTCL: Prevention of Transfer of Certain Lands
54. RCUDA: Ramanagara–Channapatna Urban Development Authority
55. RECL: Rural Electrification Corporation Limited
56. RGHS: Rajiv Gandhi Housing Society
57. RMP: Revised Master Plan
58. RTC: Record of Tenancy and Cultivation
59. RWA: Residents’ Welfare Association
60. STCG: Short Term Capital Gains
61. STP: Sewage Treatment Plant
62. TDR: Transfer of Development Rights
63. UAV: Unit Area Value
64. VAT: Value Added Tax
65. ROC: Record of Companies
BDA limits map
BMRDA limits map
UNDERSTANDING THE
FUNDAMENTALS
Land types in Bengaluru

What kind of land is your prospective property on? Know

the crucial details.

Land is the ultimate resource in real estate development, and rules regarding
land use for housing in particular determine a lot of development in a city
like Bengaluru. Many of these rules are shrouded in obscurity, and need not
be.
When buying property in Bengaluru and cities like Bengaluru where many
authorities regulate land use approvals, the finer details are often missed out.
This not only causes risk in property purchases, but also confusion. Breaking
through the confusion will help you make clearer decisions. This chapter will
lay the ground for what buyers and investors must know about land in the
city.
1. Which plan-sanctioning authority does the property
fall under?
Bengaluru’s Local Planning Area is conceptually organised into three main
‘rings’ for the consideration of zoning and regulations. The constantly
expanding inner core of the city falls under the purview of the Bruhat
Bengaluru Mahanagara Palike (BBMP). Land in the second ring falls under
the purview of the Bangalore Development Authority (BDA), and land
belonging to the outer ring is the concern of the Bangalore Metropolitan
Region Development Authority (BMRDA).
For layouts, the BDA is the plan-sanctioning authority for all areas under the
purview of the BBMP as well as the BDA. The BBMP itself has no powers to
sanction layout plans but can sanction apartments, individual houses and
commercial buildings. The BBMP administers and collects property tax for
properties falling under the jurisdiction of the BBMP.
The BMRDA, through its five Local Planning Authorities (LPAs; designated
as per their locations at Nelamangala, Kanakapura, Magadi, Anekal and
Hoskote) along with Ramanagara–Channapatna Urban Development
Authority (RCUDA), Bangalore International Airport Area Planning
Authority (BIAAPA) and Bangalore Mysore Infrastructure Corridor Area
Planning Authority (BMICAPA), are the plan-sanctioning authorities for all
properties falling in the third ring.
1. BIAAPA: This body deals with the ‘island’ containing the airport along
with parts of Bangalore North, Devanahalli and Doddaballapur under its
purview. The BIAAPA is a plan-sanctioning authority concerning land use
only around the airport. The organization retains primary focus on the
operation of the airport and the flight paths of aircrafts before sanctioning any
land development plans.
2. BMICAPA: Similar to BIAAPA, for areas lying along the Bangalore
Mysore Infrastructure Corridor, BMICAPA forms the plan-sanctioning
authority. In Bengaluru, this corridor includes parts of Kengeri, Uttarahalli
and Yeshwanthpur.
All lands falling beyond the jurisdiction of the BMRDA are considered as
rural areas, and such areas come under the purview of the Directorate of
Town and Country Planning (DTCP).
Panchayat-sanctioned layout or apartment plans are not valid for properties
developed within the jurisdictions of the BBMP, BDA, BMRDA, BIAAPA,
or BMICAPA; these plans are valid only if the land in question lies outside
BMRDA limits, and then such properties come under the town and country
planning authority, i.e. DTCP.
» See BMRDA limits & BDA Limits Maps.
2. Which Zone does the property fall under?
When you are considering buying a home or a flat, always check that the land
it is standing on has been approved for residential use. This simple check can
save a lot of hassle later.
The Zoning and Land Use rules specify as to the purposes for which land can
be used. This is laid out in BDA’s Revised Master Plan (RMP), 2015, for
land under the jurisdiction of the BBMP and BDA. The master plan of the
BMRDA is used for land use and zoning rules outside BDA limits.
It in the master plan that different areas in the city region are marked as
residential, commercial etc. The rules are similar for both the BDA and the
BMRDA.
The main classifications of land use are as follows:
i. Residential (R)
ii. Commercial (C)
iii. Industrial (I)
iv. Public & Semi-public (P&SP)
v. Parks & Open Spaces (P)
vi. Traffic and Transportation (T&T)
vii. Public Utilities (PU)
viii. Unclassified (UC)
ix. Agriculture Land (AG)
For a residential property to be legally compliant, it should fall under the
residential or mixed residential zone. Residential multi-storied apartments are
allowed in commercial zones as such apartments are treated as commercial-
activity in the hands of the developer.
If a property you are planning to buy is part of a project which has a
sanctioned plan from the BDA or the BMRDA, or a sanctioned building plan
from the BBMP, the plan is presumed to be compliant with the zonal land use
rules.
3. What is a Revenue Site?
A revenue site is a site which has agricultural roots and has not been
converted into residential/commercial property. The term came to be used as
the owners of such properties used to pay agricultural revenue tax previously.
The title for agricultural land is extinguished if the BDA acquires the land
and forms a layout. Pockets of land in city limits or BDA/BBMP/BMRDA
jurisdiction that are not acquired and not converted remain as agricultural
land. If these properties are turned into sites without conversion, they are
called revenue sites, and they will get a House List number and Khata
number issued by the old panchayat office.
These properties may show an architecturally correct layout plan, but the plan
may not carry the seal of any of the plan-sanctioning authorities except
maybe that of the panchayat. Based on the seal of the panchayat, owners of
such sites would be assigned their Khata numbers.
The main issue with a revenue site is that it is unconverted but transactable.
The sub-registrar will sometimes freeze the registration of such sites, and
sometimes the government will allow the registration of these sites. Banks
usually will not provide loans for such sites, but some risk-taking banks can
provide a composite loan to build a house. These sites have problems of
resale, bank loan availability and marketability.
Application for conversion of revenue sites needs to done by the original land
owner. Depending on the land use, the land can be converted from
agricultural to residential or commercial use.
4. Conversion of land
Conversion from the original land use to desired land use is done by the
deputy commissioner for the district, and such conversion is governed by the
relevant comprehensive development plan (CDP). Before conversion, the
prospective owner/buyer needs to check for what purpose the land can be
used according to the CDP.
The owner of agricultural land can choose not to convert it and continue to
use it as agricultural land. But the moment s/he chooses to convert the
purpose of usage, the conversion has to be made according to the land use for
that zone.
If you see a notice such as ‘sites for sale’, or ‘homes/apartments for sale’,
first check on what land use is permitted at the site according to the CDP.
Then ask for the conversion certificate and check for the plan sanction if the
site or home or apartment is in a layout. Finally, check for clear titles for the
property.
5. What is a Gramathana property?
The Gramathana represents the original place of residence within a village.
Gramathana properties do not need conversions as they have been used as
residences for a long time. In village maps which go back to British days,
these Gramathanas can be observed as having been marked as ‘ooru’ (village)
properties surrounded by survey numbers corresponding to agricultural lands.
Even in BBMP areas, there are Gramathanas for which you can directly
obtain a Khata provided the land is a genuine Gramathana.
Forms 9 and 10, which were tax paid receipts issued by village accountants
or other revenue officials in the early days, were previously used as proof of a
property being designated a Gramathana property. But in the 1990s, these
forms were issued to lands with survey numbers (agricultural lands), and
sellers would use this as proof to convince the buyers to buy unconverted
agricultural land passing them off as Gramathanas. However, even now there
are genuine Gramathana properties within the city. To ensure that it is so,
obtain a certificate from the Department Of Survey, Settlement & Land
Records stating that the property is a Gramathana.
Department Of Survey, Settlement & Land Records
Central Office, K R Circle
+918022212383 / +918022212408
http://sslr.kar.nic.in
Documents to check while buying
property

Before buying any property, it is essential to investigate all

the documents provided by the present property owner and
authenticate it with the agencies issuing the documents.

1. Which are the documents to check before a property

transaction?
There are two kinds of documents—primary and secondary documents of
title. Primary documents of title are the most essential documents related to
the property. They show the ownership history of the property being sold.
Some of the secondary documents of title help to corroborate the information
mentioned in the primary documents of title. The other secondary documents
help the buyer to assess whether the building is compliant with the
regulations of various agencies and if it has been built according to plan.
2. General list of documents for all properties
i. Primary documents of title
• Parent deed
This is the Sale deed, Gift deed, Partition deed, Allotment letter or
similar, by which the present owner/owners have acquired the title for the
property. This document is also referred to as the Mula Pathra and
includes the unbroken flow of the title up to the present owner.
Tracing of the title should always begin with the earliest available
document, record or order by which a Court or Government or a statutory
authority has given the rights to the property to its first owner. Then,
 documents which identify the subsequent owners of the property through
an unbroken sequence of legal acts up to the present owner, i.e. the seller,
should be traced.
At times, many of these documents may have been lost over time; in such
instances, the buyer should look at the earliest registered document
available with the seller and, with the help of a lawyer, trace the title up to
the present owner. Since almost all properties in Bengaluru have their
roots in agriculture, it is possible for the lawyer to establish whether the
property has clear titles and can be legally sold by means of the secondary
documents mentioned below.
ii. Secondary documents of title
• Building plan sanction
In case of apartments and individual houses, you need to have a Building
Plan Sanction issued by the BBMP, BDA or the village panchayat for
properties under their jurisdiction.
For vacant sites in layouts, you need to check for the layout plan sanction,
issued by the plan-sanctioning authority. For builder-developed
independent homes, apart from the layout plan sanction, you need to have
building plan sanction from the BBMP or village Panchayat, under whose
jurisdiction the property falls.
• Khata
The Khata certificate is issued by the BBMP, the BDA or a village
panchayat in the name of the present owner or owners. There is no
specific mention of the term Khata in the Karnataka Municipal
Corporation Act of 1976; this is only an assessment register which
compiles all the details of each property in the city. The term Khata is a
colloquial term and literally means an ‘account’. Thus, the Khata is an
account of every person who owns a property in the city. Each Khata has
two parts: the Khata certificate and the Khata extract.
Khata certificate
A Khata certificate is obtained for the registration of any new property
 after paying the registration fee. The certificate that is issued mentions
that a particular property number ‘N’ is held in the name of person ‘X’.
This certificate is required for applying for a water connection,
electricity connection, trade licence and building licence. The Khata
certificate is given by the BBMP only to the owner of the property or to
his legal heirs.
Khata extract
A Khata extract is a document issued by the BBMP that states the name
of the property owner, details of the property, such as plot size, built-up
area etc. The owner can obtain this document on payment of Rs. 100/-
along with a requisition letter to the Assistant Revenue Officer at the
BBMP’s zonal office for the area where the property falls. Only owners
can collect Khata extracts.
The Khata certificate and Khata extract are unofficially together called
the ‘A Khata’.
• The ‘B Khata’
In order to include unauthorised layouts, revenue sites and buildings
constructed in violation of by-laws into the property tax net, a provision
was made under the Section 108A of the Karnataka Municipal Council
Act. Under the new provision, the BBMP could collect property tax from
such properties. The details of the property tax collected from such a
building or apartment or site are maintained in a separate register, called
the B register.
• Encumbrance certificate
The Encumbrance certificate (EC) is a record that shows all the registered
transactions pertaining to a property in a particular time period. It is
issued by the sub-registrar’s office under whose jurisdiction the property
falls. ECs are issued via Form 15 or Form 16. If mortgage, sale or any
other deeds with respect to a property are registered in the specified
period of time, then Form No. 15 is issued with the details of each
transaction. If there have been no registered transactions during the
specified period of time, the sub-registrar will issue a Form 16. While
buying a property, you should insist on an EC for a period of at least 30
years.
Though EC is helpful in ensuring a clear and marketable title for the
property, it does not provide the complete picture. Certain
documents/transactions need not be registered, and these are not shown in
the EC. Such documents and transactions include unregistered wills,
unregistered power of attorney, unregistered agreement of sale and
unregistered mortgages. Apart from these, litigation in courts and tax
liabilities are also not shown in ECs. So while buying a property, do not
rely solely on ECs for a clear title and look at other secondary documents.
• Commencement certificate
The Commencement or clearance certificate (CC) is given by the
engineering department of the BBMP for properties in the city limits.
Once the building licence is obtained and the foundation and peripheral
columns have been constructed, the builder has to apply for the CC. Only
after a CC is issued can a builder legally proceed to construct the
complete building. Note that BBMP will not issue an OC on completion
of the building, if the builder had not taken a CC at the beginning. See OC
section below.
• Occupancy certificate
The Occupancy certificate (OC) is obtained at the end of the construction
and is proof of plan sanction compliance. Once the builder applies for the
OC, BBMP will conduct an inspection to confirm that the construction is
compliant with the sanctioned plan. Note: Thousands of Bengaluru
apartments do not have OCs and yet are occupied. One reason for this is
that re-sale of flats and buildings with no OCs is not barred. OC
enforcement is weak.
• Compounding fee receipt
If the construction varies from the sanctioned plan, this is an important
receipt which shows that a compounding fee has been paid to the BBMP
for regularising any deviation from the sanctioned building plan.
• Conversion certificate
This Conversion certificate is issued by the Deputy Commissioner. It
certifies that the property has been converted from agricultural land to a
residential property.
• Tax paid receipts
These are receipts issued by the BBMP, BDA or village panchayat,
recording the payment of taxes for the property.

• PTCL endorsement
The buyer can ask the builder/seller to get a Prevention of Transfer of
Certain Lands Act (PTCL) endorsement. Either the Tehsildar or DC can
issue this document. This is to ascertain that the property is not on land
granted to person/persons belonging to the SC/ST communities.
• Land acquisition
The buyer can ask for an Endorsement from the Special Land Acquisition
Officer of the BDA, BBMP, National Highways Authority of India
(NHAI), the Karnataka Industrial Area Development Board (KIADB),
Karnataka Housing Board (KHB), Bangalore Mysore Infrastructure
Corridor Project and others, confirming that there are no acquisition
proceedings underway with respect to the property being purchased.

• Family tree
This document shows the genealogical tree in the form of a flow chart,
with the names and age of the members of the family of the present and
past owners of the property being sold. It also indicates whether the
persons mentioned in it are living or dead; it is certified by the Village
Accountant or the Revenue Inspector.
• General power of attorney
A general power of attorney (GPA) is a notarised document which
empowers another person to act as your legal representative. A GPA
executed by a person living outside India should be notarised in the
 country of origin and stamped in India within four months of being
notarised. Within India, it is enough if the GPA is notarised. GPA had to
be registered earlier; however, the Supreme Court has ruled that it is
sufficient if the GPA is authenticated by a notary public.
As a buyer, you need to ensure that the GPA is valid, not revoked and is
provided by the person who has the legal right to give the same.
3. Documents for scrutiny for apartments
i. Joint development agreement & GPA
In recent times, the most popular method for building apartments is by way
of a Joint Development agreement (JDA). This is an agreement signed
between the landowner and the developer, where the landowner gives the
land to the developer to build and sell apartments; in return, he gets a fixed
set of apartments to sell. The landowner issues a GPA to the developer.
ii. Sharing agreement
The Sharing agreement shows the landowner’s share and developer’s share in
a JDA. This helps the buyer clarify whether the apartment/property for sale
belongs to the developer’s or the landowner’s share and check the validity of
the seller.
iii. Call for inspection of original documents
Although the builder usually has all the original documents in his possession,
he may have pledged the property to a bank as collateral. In this case he may
not have the originals. If so, the builder has to provide a No-objection
certificate (NOC) from the bank prior to the registration of the property,
stating that the money goes towards paying off the loan and the property in
question is free of mortgage. When buying the landowner’s share of the
property, this scrutiny is slightly less crucial since the landowner’s share is
typically free of mortgage in most JDAs.
4. Documents for scrutiny for properties with an
agricultural past
i. Pahani or RTC
The Pahani is a revenue record of tenancy and cultivation (RTC) that
describes the rights, tenancy and crops details for the property, such as
owners’ details, area of the land, land revenue details, water rate, soil type,
nature of possession of the land, liabilities, crops grown etc. Ideally, the seller
should have the RTCs from 1969 to date, and all the mutations should be
mentioned in the RTCs.
ii. Record of rights and index of lands
This document contains details such as the extent of the property, names of
the owners etc. Although this document has been discontinued by the
Revenue department, it is useful in the tracing of titles. There are reports that
it is being unofficially issued, however.
iii. Mutation extract
The Mutation Extract is akin to an ‘agricultural khata’ and is issued by the
village’s official accountant or Tehsildar. It contains an extract from the
mutation register with relevant details, such as those regarding the previous
owner, present owner, the mode of acquisition of the property by way of sale
or inheritance, and the total extent of the property.
iv. Tippani and Podi extract
Tippani is a hand-drawn sketch from the records of the Survey department
with respect to a property contained in a single survey number that is not
bifurcated into sub-survey numbers issued by the Survey department. For
instance, Hissa Podi extract refers to a sketch showing fragments within a
survey number with sub-survey numbers such as 159/1, 159/2 etc.
v. Akarband extract
The Akarband indicates the total extent, boundaries and classifications of the
property. This is issued by the Survey department.
vi. Village map
This document shows a clear map of the village in which the property is
situated.
5. Documents for scrutiny for BDA sites
Whenever government acquires a land for development of a layout, the
previous title is extinguished by law and title starts from the BDA’s
acquisition of the property. The following documents should help in
ascertaining the validity of the property papers.
Primary documents of title for BDA properties
• Allotment letter: Issued by the BDA in favour of the present owner if
he/she is the original allottee
• Possession letter: Issued by the BDA in favour of the present owner
recording the handing over of the possession of the property to the present
owner
• Lease-cum-sale deed executed and registered in favour of the allottee
by the BDA
• Absolute Sale Deed executed and registered in favour of the allottee
by the BDA with respect to the property after 10 years from the date of
the original allotment
• Building Sanction Plan issued by the BDA (or by the BBMP if the
building was constructed after it was handed over to the BBMP by the
BDA) where a building has been constructed on the property.
The secondary documents of title for BDA sites are Khata, Tax paid receipts
and EC, which have been explained in the list of general documents.
A thorough scrutiny and verification of the abovementioned documents will
enable you to ensure that the property that you are acquiring has a clear,
marketable title and will help you to avoid fraudulent sales and lengthy
litigation.
6. Buying a BDA Site Allotted as Compensation to
Original Owners in return for Land Acquisition to
Create the Layout
The BDA’s process of forming residential layouts from what is usually
agricultural land includes an incentive scheme. This is to make it easy for
landowners to voluntarily surrender land. For every acre that the BDA
acquires, the landowner is to be given a 60 × 40 site.
In principle, this scheme works out well for the landowner because of the
substantial change in land values once the layout is created and the market
value appreciation of residential plots over time. However, this is where the
process is different from that of a BDA site allotted to a regular applicant.
i. For the sake of convenience, the BDA registers it in the name of the
Khatedar.
ii. Unlike the normally allotted BDA sites, where all previous titles and
titular claims are extinguished and the new allottee becomes the owner, in the
case of the compensatory sites, the situation is different. The land would
typically be ancestral land, and many individuals can claim rights over the
property, such as heirs, minors, etc. Note that this ‘ancestral’ status carries
forward into the compensatory site as is.
iii. In some cases, if the original landowners were illiterate or less or of
cash even to register the compensatory site to transfer it to their name from
the BDA. These owners would have then drawn up sale agreements with
third parties or brokers. In such cases, it has been observed that sometimes
the owners have gotten into agreements even before they are allotted the
sites.
iv. These agreement holders then carry out the rest of the site acquisition
formalities. They sometimes pay the money for the registering the site itself.
All this would have happened by the time you run into such a site, when you
are prospecting.
What you need to do
Such sites can be identified through the allotment letter of the BDA itself, so
always insist on seeing the allotment letter. A compensatory/incentive site
will be mentioned as such. Note that you will not be able to spot the
difference between a normally allotted BDA site and a compensatory site
from a site plan map stone which is sometimes located at key street
intersections in the layout. The allotment letter is needed.
If you are buying such a site, you need to obtain the same documents which
will trace title claims, presence of minors, etc. as in the case of buying sites
on land with agricultural roots, described earlier in this section. Bring the
entire owner’s family tree into the scrutiny process.
Ask about prior agreement holders, and flush them out.
It is important to have a competent and independent lawyer scrutinise all
the property-related documents to ensure the property has a clear title.
A BBMP Khata Certificate.
A BBMP Khata Extract.
The famous Khata ‘B’ that has allowed BBMP to collect property taxes from
irregular and deviated properties as well as sites in unauthorised layouts,
while they await Akrama Sakrama regularisation.
A BDA Khata. Note when BDA hands transfers a layout to the BBMP after
the area becomes a ward (amalgamation or expansion), the BBMP issues a
new Khata. The BDA’s Khata becomes outdated at that time.
An Encumbrance Certificate for post 1 April 2004 period. Note the property
transactions recorded in it are directly from a computer database. The record
systems at Bengaluru subregistrars have become more efficient and less
stressful to citizens in recent years.
 An Encumbrance Certificate issued for records prior to 1 April 2004. When
you apply for ECs, sub-registrars ask you to split the applications for periods
after 1 April 2004 (computerised) and before that (manual search).
PROPERTIES IN COMMUNITIES
Layouts, ‘gated’ communities,
apartments and townships

Bengaluru has seen a rise in the number of gated

communities, apartments, and townships in the last few
years. Buying a property in these communities has some
similarities with buying any other property, but there are
also significant differences.

The challenge with living off noisy, public streets, with chaos reigning
outside during mornings and evenings is understood by everyone. At some
level it means one cannot easily go out for a jog, take your baby out on a
stroller, be concern-free when elders step out for a walk and so on. Often, it
can be stressful to even cross a road in Bengaluru.
Little wonder that thousands and thousands of families are preferring to settle
into apartments (and villa) communities which have their own walking paths,
roads, parks, gyms, and tracks. Developers all around the city include such
offerings in their projects and throw in an initial few years of maintenance
including manned security at entrances and exits. This is partly how ‘gated’
communities have emerged.
This brief chapter will help you know the rules and regulations that govern
these developments and the grey areas to watch out for while buying
properties in such developments.
1. Layouts and ‘gated’ communities
For the development of any residential layout, land use has to first be
changed from agricultural to residential use. The developer has to approach
the deputy commissioner to permit change of land use. The deputy
commissioner after checking whether the zoning rules in the CDP allow for
the land to be used for residential purposes will issue a conversion certificate.
With this conversion certificate and the layout plan drawn by a registered
engineer or architect, the developer must approach the plan-sanctioning
authority which holds jurisdiction in the area of the proposed layout or gated
community.
For areas falling under the purview of the BBMP and BDA, the BDA is the
plan-sanctioning authority. For areas falling under the BMRDA, the five
LPAs, which are the local arms of the BMRDA, are the plan-sanctioning
authorities. Apart from the five LPAs, the BMRDA has two other special
planning authorities: BIAAPA, which is the plan-sanctioning authority for
properties around the Kempegowda International Airport (KIA), and the
BMICAPA, which is the plan-sanctioning authority for properties lying in the
Bangalore Mysore Infrastructure Corridor.
According to the master plans of the all the plan-sanctioning authorities, of
the total area under development in a layout, only 55% should be set aside for
sites. Of the remaining 45% of land, a minimum of 10% should be set aside
for parks and playgrounds, 5% should be set aside for civic amenities (CAs),
and the remaining area for roads.
After inspecting the layout plan, the plan-sanctioning authority will allow
development of the land. The plan-sanctioning authority will initially release
only 40% of the total sites for sale. The sites to be released are to be clearly
indicated on the plan along with the phase-wise development. A second 30%
is released at an intermediary stage, and balance 30% of the sites shall be
released for sale only after the layout is fully developed in terms of utilities
and infrastructure.
Once the development is completed, the developer has to draw up a
relinquishment deed handing over parks, open spaces, CAs, and roads to the
plan-sanctioning authority.
In Bengaluru, scores of recent layout developments have been marketed as
‘gated’ communities or builder-developed communities. If you go by the way
marketing literature comes across, this means that the roads, parks,
playgrounds, and amenities in the layout are meant to be exclusively used by
the owners of the homes in the layout, and usually, there is 24-hour manned
security at the layout.
Grey areas
• Gated communities are not that exclusive
Gated communities are currently not separately recognised under any law in
Karnataka. For gated layouts hosting independent homes or villas, there is
no special recognition as per the law. Consequently, none of the plan-
sanctioning authorities or the BBMP makes a distinction between open
layouts and gated communities.
Therefore, closing off the developed property is not permissible as per law.
There is no special status accorded to a ‘gated’ community. According to
the law, all the roads, parks, and CAs in a gated community are not
exclusive to the residents of that community; instead, these form the
property of the government. (Which means they are a ‘public commons’ in
principle.)
• Relinquishment of common areas back to the planning authority
As mentioned earlier, once development is completed, the developer has to
draw up a relinquishment deed handing over parks, open spaces, CAs, and
roads to the plan-sanctioning authority. For open layouts such as housing
society layouts (bank officers’ colonies, for example), the handing over of
parks and roads back to the planning authority follows a routine procedure.
But for gated communities, the relinquishing of parks and roads has been a
controversial issue. This is because the owners of the homes have paid for
the development of roads, parks, and amenities, and hence, they treat them
as exclusively for use by layout residents only. Builders also facilitate this
kind of consideration.
At the time this guide went into publication, this matter is not settled. BDA
for instance can insist that a ‘gated’ community be opened up for through-
traffic by connecting the main road off the front side of the layout to
another road on a the back side.
• Undervaluation notices
Most property buyers, at the time of purchase, typically register the
property as per the prevailing guidance value fixed by the state government
and not as per the market value in that area to save on stamp duty. The
District Registrar of Stamps, under Section 45-A of the Karnataka Stamp
Act, 1957, is entitled to serve undervaluation notices to those parties found
to have registered their property at a value lower than the market value
(which results in a loss of revenue for the state government).
In some cases, developers register only the site with the buyer and then
hand over the site and the built-up home together to the buyer as part of the
contract. Since the house on the site has not been valued at all, this action
also constitutes undervaluation. Owners usually settle this issue after taking
possession of the property when they receive the notice.
As per the law for undervaluation notices to be valid, they must be issued
within two years of the date of registration of the property. So if the notice
has been issued after this period, owners can contest it. Residents can also
contest the notice by presenting facts related to the property on the basis of
access to CAs and basic infrastructure, and correlate it with the registered
value as opposed to the market value.
However, most of these cases end with a deal between the registrar and the
homeowner wherein they agree on a value in between the guidance and the
market value, and the owner coughs up the difference amount. In many
cases, the homeowners end up bribing officials for the closure of such
matters in the fastest possible time.

• Unreleased sites
Developers might sell you an unreleased site. Ensure that the site being sold
has been released by the plan-sanctioning authority to the developer. In case
of a newly developed area, make sure that the site falls under the first 40%
or second 30% bunch released by the plan-sanctioning authority to the
developer.
• Documents needed for scrutiny
If you are buying a site or a home in a layout or gated community, obtain
the following documents:
 a. Conversion certificate: A certificate issued by the deputy
commissioner stating that the land has been converted for development as
a residential layout.
b. Layout plan sanction: Approved plan of the layout showing the
location of the sites and common areas along the survey numbers on
which they lie as approved by the plan-sanctioning authority under whose
jurisdiction the layout lies. Panchayat- or BBMP-approved layout plans
are not valid.
c. Release letter: This letter indicates whether the site you are buying
falls within the portion of the sites released by the plan-sanctioning
authority to the developer for sale.
Insist that the actual survey number on which the site is located should be
recorded in the sale deed. In most cases, all the survey numbers on which
the layout is formed are listed together in Schedule A of the sale deed, and
only the site number is mentioned in Schedule B.
2. Apartments
An apartment as defined in Karnataka is a property of a residential nature
wherein the owner owns the apartment and holds a percentage share in the
land, common areas and amenities.
i. Apartment Laws
The Karnataka Apartment Ownership Act (KAOA) governs apartments.
The KAOA was tabled with the view to make apartments heritable,
transferable, and mortgageable and to address aspects related to
management of the property. The Karnataka Ownership Flats Act (KOFA)
is not in use.
ii. Key features of the KAOA
In India, the sale and purchase of immovable property is governed by the
Transfer of Property Act of 1882. The 1882 act does not cover the concept
of an apartment along with its undivided share in land and common areas.
So a fundamental step that the KAOA employs is that it equates the
purchase of an apartment with its proportional undivided share as
equivalent to an immovable property bought under the Transfer of Property
Act. The purchaser is the absolute owner with a clear title to the apartment
and its proportional undivided share.

iii. How is a clear title ensured?

• Deed of Declaration
The KAOA requires the builder/promoter/owner of the apartment to
execute a document known as the Deed of Declaration (DoD). The DoD
is a document that describes the property, i.e. the building, all of its
apartments, and common facilities such as lifts, generators, fire fighting
equipment, pool, and gym along with the ownership scheme giving the
percentage share of each apartment. Along with the DoD, copies of plan
approvals from local authorities and by-laws of the association of owners
require to be registered.
• Deed of Apartment
Currently, when individual apartment owners need to register their Deed
of Apartment (DoA) to complete their sale, the KAOA requires that the
DoA refers to the DoD (along with information regarding registration of
the DoD, such as registration number, date, and relevant sub-registrar’s
office), so that the ownership scheme is fully traceable and the title is
clear.
There are also special requirements on the Registrars and Sub-Registrars
to maintain this information in an organised fashion.
• Form-B
In addition to the DoA, the purchasers also execute a declaration known
as Form-B, as per which they agree to abide by the rules of the KAOA.
Once the apartments are sold and registered, the builder is required to
approach the Registrar of Cooperative Societies (identified as the
competent authority by the KAOA) with copies of the registered DoD,
by-laws, Deeds of Apartment, and Form-B declarations to register the
association.
 If there are unsold apartments, the builder/promoter is allowed to
represent those unsold apartments. This process completes the formation
of the association. The by-laws registered with the DoD become the by-
laws of the association.
iv. Townships
According to the BDA’s RMP 2015, a minimum of 40 hectares of land that
can be accessed by a road with a minimum width of 18 m is required for the
formation of an Integrated Township. Apart from residential land use, the
master plan also allows for industrial, commercial, and public land use.
The permissible usage (percentage of allowable usage) is as follows:
• Residential: 40%

• Non-residential: IT-, BT-related activities up to 50%, commercial (to

support the township): 5%
Other regulations for approval of integrated township
1. Ten percent of the total area shall be reserved for parks and open
spaces. This area shall be handed over to the authority free of cost and shall
be maintained by the developer to the satisfaction of the authority.
2. Five percent of the site area shall be reserved for public and semi-
public use/CA sites, and this area shall be handed over to the authority; the
same shall be allotted by the authority for the development of specified CAs
either to the developer or others on a lease basis.
3. The Floor Area Ratio (FAR) is calculated for the entire area excluding
the area reserved for CAs.
4. The roads shown in the Revised Master Plan, 2015, shall be
incorporated in the plan, and they shall be handed over to the authority free
of cost.
(Also see appendix 1 & 3 on water and electricity for more information)
A checklist to help with green property
purchasing

Does your property follow green norms? When you buy

your house, it isn’t the swimming pool that will matter the
most but rather, basics like drinking water and garbage
disposal!

While most property-related advertisements in newspapers show clubhouses,

swimming pools, landscaping and distance from the airport, not everyone
will focus on green norms. Given Bengaluru’s rapidly growing problems
related to water and garbage, it is essential that certain fundamentals are
considered during a property purchase.
Drinking water, sewage disposal and treatment, waste management and
energy efficiency are the most important ‘green’ checks that you must look
at. Not all builders pay attention to sustainable utilization of resources, and it
is important to not assume that the builder is looking at all aspects of
developing a layout or apartment complex. Ask the necessary questions, and
get things done at the building stage. ‘Going green’ is far easier at the
construction stage than after residents move in, and cheaper too!
1. Availability of drinking water
While properties within the limits of the BBMP are all likely to be connected
with Cauvery water supply, for those being developed on the peripheries of
the city, public water is off-limits. (See Appendix-1 for more.) To tackle the
problem of water scarcity, the Bangalore Water Supply and Sewerage Board
(BWSSB) has made the installation of rainwater harvesting (RWH) systems
mandatory in new constructions, in both apartments and independent houses.
Although there is no proper enforcement mechanism for this requirement,
several builders are setting up these RWH systems. Yet, many builders only
drill borewells, in both apartment complexes and gated communities,
ignoring RWH systems completely. Groundwater levels in Bengaluru and its
peripheral areas have been depleting fast over the last decade going by
Karnataka government’s own reports, with the situation worsening every
summer. People with no access to Cauvery water have to resort to ordering
tankers of water in the summer, when prices of water also increase.
Harvesting rainwater therefore becomes an important tool for tackling the
water problem.

i. What is RWH?
Rainwater harvesting is simply the act of capturing rainwater falling on
surfaces such as roofs, sloping roofs, run-off drains like storm water drains
etc., and either storing it for use or recharging it back into the ground by
using RWH systems to improve the underground water table. RWH helps
households in securing their water supply, reducing their dependence on
piped/tanker/borewell water. For instance, a four-person family typically
consumes 600 litres of water per day, based on the WHO standards of 150
litres per person per day. A family of four living in a 30 × 40 home can
expect to have their water needs for 4–5 months met by RWH alone, while in
a larger 40 × 60 home (greater surface area), the water requirement for 5–6
months can be met for the same family. The table below shows some
representative data for RWH, based on the average Bengaluru rainfall of 970
mm with an average rain event of 30 mm and heavy rain event of 60 mm:

Rooftop for a standard Rooftop for a 40’ ×

Catchment description
30’ × 40’ home 60’ home

Harvestable roof area (sq.

1200 or 112 2400 or 223
ft/sq. m)

Expected annual RWH

97,000 1,95,000
capture (L)

Expected RWH capture for

3,000 6,000
average rain (L)
Expected RWH capture for
6,000 12,000
heavy rain (L)
Further, harvesting rainwater can significantly reduce the risks of flooding
during the rainy season.
ii. How does RWH work?
Rainwater can be broadly harvested in two ways:
• Rooftop RWH with direct storage: Rainwater falling on the terrace
areas is collected through pipes, filtered, and stored into a sump or rain
barrels.
• Groundwater recharge: water from the storm water drains, paved and
unpaved, is redirected into a 20-feet-deep ‘recharge well’ that percolates the
water to the groundwater aquifer. This differs from recharge pits, which are
not very deep.
Recharging ground water aquifers is crucial today because of Bengaluru’s
depleting groundwater table.
So ask your builder what type of RWH system is being installed, and if
possible, encourage the use of recharge wells and rooftop RWH systems to
reduce future dependency on supply from BWSSB and tankers and reduce
long-term costs.

iii. Which RWH is suitable?

Both the above mentioned RWH systems can be installed in independent
houses as well as in apartment complexes and gated communities. A
combination of rooftop harvesting and groundwater recharge may be
required; an RWH expert can help you decide the type of RWH system
needed based on your water consumption levels.
iv. BWSSB rules on RWH requirements
• Rooftop harvesting: For 1 sq. m of rooftop, a provision at the rate of 20
litres of storage or more capacity shall be adopted.
OR
 • Groundwater recharge: For 1 sq. m of land surface, 10 litres of
storage or more capacity shall be adopted.

v. Things to remember
• Check the building plan sanction to see if an RWH system has been
incorporated.
• The design of the RWH system is important. It needs to be structurally
stable.

• A firm or consultant with a proven track record in this field should be

hired for the same.
• It is safe to drink rainwater as long as you pass it through a household
filtration system.
• If the property already has an RWH system, inspect it. Ask questions,
and make sure the system is adequate and stable by involving an RWH
expert.
• The work involved in maintaining an RWH system is negligible, mainly
needing only periodic cleaning.
vi. Costs for RWH systems
• For new constructions, if RWH systems are planned into the
construction itself, the incremental costs are typically insignificant.
• For retrofitting an independent house with a rooftop RWH system and
direct storage, the average cost typically ranges from Rs. 25,000 to Rs.
50,000 for 60 × 40 plot sites. Building a new sump costs Rs. 10 a litre
approximately. Ultimately, the cost depends on site conditions and
consumer preferences, such as whether to store water in an existing tank,
such as a sump, or to purchase a new rain barrel.
• A typical groundwater recharge well measuring 3 feet in diameter and
20 feet in depth costs approximately Rs. 30,000; however, the exact cost
 depends on the soil type and other such factors. Costs may be slightly
higher for larger plots. Construction of RWH systems can be completed in a
matter of days and is not a lengthy process.
(Cost ranges cited are from 2012–13 estimates and are subject to
changes with inflation, change in material costs and labour rates.)
2. Sewage disposal and treatment
The use of water can be rationed with the help of a sewage treatment plant
(STP). Installation of STPs is mandatory in certain residential complexes
according to the rules of the Karnataka State Pollution Control Board
(KSPCB). STPs help in treating wastewater, which can be reused for
watering plants and trees as well as for flushing.
i. Does my building need an STP?
• For buildings, apartment or gated communities within BBMP limits, an
STP is mandatory by law if the development area measures more than
20,000 sq. m. For developments measuring less than 20,000 sq. m, a proper
underground drainage system will suffice.
• For buildings outside BBMP limits, an STP is mandatory if there are
more than 50 apartments in the building.
• In the case of gated communities, an STP should be able to manage
waste produced by 5 people (per family), multiplied by 135 litres of water
(per person consumption), multiplied by the number of sites/units in the
community, as specified by current laws.
• The builder can choose the site at which the STP is set up; it is typically
located 15–20 m from the nearest dwelling. After it is set up, the KSPCB
issues a ‘Consent for Operation’ certificate; only after this certificate is
received, the building can be given an OC.
ii. What does an STP do?
An STP treats wastewater from the kitchen, bathroom, toilets and washbasin.
In the STP, bacteria convert this polluted water into clean, non-toxic water.
The water that is treated thus can be used for gardening, car washing and
flushing purposes. This is not meant as drinking water.
iii. Types of STPs
There are four types of STPs available in the market today:
• Extended Aeration Activated Sludge Process Reactor (EAAS)

• Sequential Batch Reactor

• Membrane Bio Reactor

• Moving Bed/ Fixed Bed Biological Reactor

Experts consider the EAAS STP to be the ideal type for residential buildings,
including apartments and gated communities. This type is also the least
expensive and is easy to maintain.
iv. How does an STP work?
• An STP functions using electricity.
• Essentially, the wastewater collected from all households is processed
by the STP after filtering out debris and separating solids and grease,
depending on the STP model. The sewage is continually aerated, ensuring
that it does not become septic or give out foul odours. Bacteria and oxygen
break this down, after which the sludge is separated from the clear water.

• The sludge is processed by drying and can be used as fertilizer, and the
clear water is stored for gardening purposes. The clear water can be further
filtered through sand and active carbon to remove sediments and odours
and then disinfected by chlorination. This can now be used for car washing,
flushing etc.
v. Benefits of having an STP
The STP-treated water can be used for gardening, car washing and flushing
purposes. This saves on water bills, is environmentally beneficial, and
provides good-quality fertilizer for gardening enthusiasts. An STP system
also eliminates foul odours that can arise from sewage lines and prevents the
discharge of sewage into public spaces like water bodies, leading to improved
public health.

vi. Things to remember

• Check if an STP is included in the building plan and ensure that it is
located 15–20 m away from the nearest dwelling.
• Architects and builders are usually not experts on STPs. A qualified
consultant should be associated with the builder for installation of an STP.

• Ideally, an STP should be located in an open-air area to ensure

ventilation. Although it can be installed in the basement, it then requires
more energy for appropriate ventilation systems, lighting etc.
• When located in the basement, an STP can cause vibrations, which can
be felt up to the third floor in the case of apartments.
• The design of an STP and the capacity of the tanks and pumps depend
on the amount of sewage likely to be generated daily.
• Genset backup power for the STP is important in the case of power
failure.
• The STP should be operator-friendly, with safe and hygienic working
conditions for the operator.

3. Waste management / composting

In recent times, Bengaluru has been grappling with a serious garbage
problem. While it is easy to blame municipal authorities for this issue, the
onus very much lies on the city’s inhabitants as well, that is you and me. The
BBMP has made it mandatory to segregate dry and wet waste at source.
However, this is not strictly enforced. Even when residents separate wet and
dry waste and hand it over to the pourakarmika or the garbage collection van,
it is disheartening to see it all mixed back and dumped together. To address
this problem, a proper waste management protocol should be ensured in your
apartment complex, gated community or independent house.
i. Waste segregation and disposal
Wet waste, e.g. leftover food, vegetable peels, kitchen leavings etc., can be
easily composted and made into manure on a daily basis within the house.
Dry waste can be sent to recycling units. Many communities in the city are
successfully carrying out these ‘green’ initiatives and taking care of their
garbage disposal without relying on contractors. Some builders do install
organic waste converters (OWC) on their properties, but this trend is not yet
popular. As a buyer, you can ask the builder about OWCs and waste disposal
facilities when looking at properties.
It is recommended that the builder make the necessary installations for waste
segregation at the time of construction itself so that residents have no option
but to segregate waste as soon as they move in.
ii. Management of wet waste
Wet waste largely refers to waste from the kitchen in the form of left-over
food, vegetable and fruit peels, spoilt food items, egg shells, tea and coffee
residues etc. This waste is completely biodegradable, that is, it can be broken
down by microorganisms and is best disposed through composting.
Typically, in an apartment or gated community, it makes sense to do
composting at a community level using composting pits (open-air) or OCW
machines (for communities with over 50 homes), both of which should
ideally be implemented in the construction stage. Composting of wet waste
can also be done at the family level, such as in independent houses or in
communities that have not enforced community composting. Today,
terracotta composters are available from local Bengaluru-based companies—
these modular units are odour-free, convenient to use, and provide excellent
fertilizer.
iii. Management of dry waste
Dry waste tends to be bulky, and therefore requires an adequate space to be
assigned for its disposal. This area can be in the basement with enough
facilities to segregate the dry waste further into recyclable and non-recyclable
waste. Again, such space can be assigned in the construction stage itself. If
appropriate space is not given, dry waste can end up in corridors or even on
the roads.
iv. Things to remember about waste management
If the necessary infrastructure is in place, waste management becomes easy.
Sustaining optimal waste management can be a challenging task. If done
right from the start, it becomes easy, with good habits being formed from day
1, leading to a clean community.
4. Energy efficiency
Energy efficiency and conservation is an important factor when buying a
house. The use of LED solar-powered lamps for outdoor lighting, such as
play areas and car parks and installation of solar water heaters are cost-saving
in the long term, even for an independent house. The Bangalore Electricity
Supply Company (BESCOM) and the Karnataka Renewable Energy
Development Ltd. (KREDL) encourage the use of solar energy in residential
buildings and houses, giving various incentives for their use.
i. Compulsory solar heaters for independent houses
For all new residential sites measuring 30 × 40 feet or more, it is mandatory
to install solar water heater panels before a new electrical connection is
approved. The owner must submit the purchase receipt for solar equipment,
and the concerned electrical sub-division’s staff will inspect the installation
of the solar heater before providing the electricity connection to newly
constructed residences.

ii. Rooftop solar panels

These rooftop panels can provide general lighting and common area lighting.
For every kilowatt of light, 80–100 sq. feet of solar panel space is required.
• Use of solar energy in apartments and gated communities: Solar
panels can be used to light common areas. Solar LED street lights with
individual panels are also available. Solar photovoltaic tanks can provide
hot water to each building.
• Use of solar energy in independent houses: Only two panels providing
250 watts each can power the TV, 5–10 lights and 2 fans for approximately
4–5 h. Solar water heaters can also be retrofitted in older houses for
 significant energy savings.
iii. Advantages of using solar energy
• BESCOM provides a rebate of Rs. 50 in monthly billing for houses with
solar panels. A further 50 paisa/unit rebate is given to houses who have
installed a solar water heater.
• Solar water heaters save electricity to an extent of about 1000 units per
year, which is around Rs. 5000–6000, with a 100-litre solar water heater.
With 200-litre heaters, the savings are even higher.

• Maintenance charges for an apartment complex can decrease with lower

electricity bills if solar-powered lighting is implemented.
Fire safety norms for high-rise
apartments

Recent rules for Bengaluru set major penalties on

owners/occupiers of unsafe buildings above 15 m in height.

If you are buying a flat in a high-rise apartment, one of the things you need to
check with the builder on compliance to fire safety rules. In the first half of
2011 alone, 1172 fire cases were reported within Bengaluru (BBMP) limits,
according to the Karnataka State Fire and Emergency Services.
After the Carlton Towers incident a few years ago, the overall approach to
fire safety rules and enforcement in the city received a fresh look. Following
the High Court’s ruling on a PIL filed by the Beyond Carlton citizens group,
the state government issued a notification on 7 July, 2011, mandating co-
ordination between the BBMP and the state’s Fire and Emergency Services
department to ensure fire safety in high-rises.
It is now mandatory for buildings more than 15 m in height to abide by the
safety norms of the BBMP’s building by-laws, i.e. RMP (Revised Master
Plan) and NBC (National Building Code). The new notification authorises the
fire department to routinely inspect buildings and to impose
penalties/suspend services in case of non-compliance.
1. New norms for high-rises
• For obtaining sanction for the building plan, the builder should submit an
NOC from the Fire Department to the BBMP.
• After construction, the Fire Department will inspect the building and give
a Clearance certificate (CC).
• The BBMP will give an OC for the building only after the CC is issued.
• Fire Officers (FOs) of the rank of District Fire Officer or above will
inspect buildings once every 2 years, along with a representative of the
residents/tenants, and give a report. The residents’ representative will be
notified 7 days before the inspection.
• The FO will issue a Fire Safety Certificate which should be presented to
the BBMP for renewal of permission once in 2 years.
• Residents should also have their buildings inspected by agencies
empanelled by the Fire Department. This inspection report, along with an
affidavit regarding the condition of the fire safety system, should be
submitted to the BBMP and Fire Department once every 2 years.
• Additionally, there will be surprise inspections.

2. New measures: penalties

• If violations in fire safety are detected, the Fire Officer will send a notice
to residents giving them 3 months to ensure compliance with safety rules. If
they do not comply or respond, the FO can ask BESCOM to disconnect
power supply to the building.
• The FO can also seal the building and ask the BBMP to suspend the
building’s OC. After this, entry and exit to the building would be allowed
only for completing fire safety-related work.

• On completing the work, residents can intimate the FO. If the compliance
is satisfactory, the FO can ask BESCOM to restore power and allow entry
and exit into the building. However, residents would need to get a fresh OC
from the BBMP by producing the newly issued Fire Safety Certificate.
• Builders who violate norms after getting the initial NOC can be criminally
prosecuted under Fire Services Act, 1964.
• Existing high-rises which do not have an NOC or the BBMP’s
Commencement certificate (issued before construction starts) will be cleared
only if there are no fire safety violations. Even then, they have to pay 4 times
the current government fee as penalty.
• Non-compliant buildings will not be entitled to Sakrama regularisation.

• The new rules are effective from 7 July 2011.

3. Government deadlines as per the new notification

The Fire Department was required to inspect all high-rises in the city and
state within 9 months of the notification.
HOW IT USED TO WORK
• Builder should get Fire Department’s NOC before BBMP’s plan sanction.
• Should get CC from Fire Department so that BBMP issues OC.
• No provision for later inspections
BUYING AND GEOGRAPHY
Bengaluru’s property geography

Whether you are relatively new to the city of Bengaluru, an

older resident who has not been able to keep pace with the
latest development trends or a recent returnee to the city
after years abroad, this chapter will help you understand the
altered geography of the city.

It is absolutely true that investing or buying a property is a real-estate

exercise surrounded by regulations. However, what is less often stated and
given credit for is that it is also an exercise in geography. Geography adds an
additional and independent value to property that we own and live in. As the
saying goes, property is all about location, location and location! It is always
a good idea to familiarize yourself with the local area or neighbourhood as
part of your appraisal while buying a property.
1. What areas of greater Bangalore have been the
fastest developing and why?
Rapid development usually indicates good appreciation of the property and
good rental income. We compiled responses from realtors regarding the
fastest developing areas in Bengaluru city in the last 5 years to gauge the
pulse of the property trend.
Bengaluru’s city limits have been moving further outward every decade
because of its high growth rate. While buildings are coming up in every
vacant plot in the city, the outskirts have witnessed explosive development
and growth.
The North, East and Southeast Corridors have seen great development in
terms of apartments and high-rise buildings in the past decade and continue
to do so. Development around Whitefield, Marathahalli and Sarjapur Outer
Ring Road has mainly been due to the demand created by the IT/ITES
companies that have offices in these areas. Development in these areas has
been both residential and commercial.
The property boom towards Devanahalli is mainly because of its
connectivity, being on the Airport Road and National Highway.
In the past couple of years Bannerghatta Road and Kanakapura Road has also
seen considerable amount of development, possibly because growth around
these two roads is limited by the outlying green belt, thus creating a demand
for the available land.
Peenya in the Northwest has also seen some development because of the
industrial areas around it; however, most of the buildings here are budget
homes aimed at the middle class rather than the luxury apartments that are
common in the other newly developed areas.
2. Which areas have been very slow to develop even
today and why?
Areas around Mysore Road, Magadi Road and Tumkur Road have seen
slower development in comparison to the rest of the city’s periphery because
of the low demand for property and housing. Most of the development
projects here are low-budget housing projects. The reason for the slow
growth can be attributed to the fact that there are several small-scale
industries and manufacturing units in these areas; further, there is a
perception that these are lower middle class areas and are therefore not
preferred by affluent buyers.
In addition, these areas have very few IT companies, MNCs or other large
companies, resulting in low demand.
3. Which areas in the city have a glut of apartments
lying unsold?
Realtors provided varied responses to this question. Some stated that the
property sales of residential apartments in most areas is good, while
commercial buildings are not doing well in the Central Business District
(CBD) due to high rentals. Others listed Whitefield, Sarjapur Road and South
Bangalore as areas with a lot of available projects or property inventory.
4. Which are the major low lying areas in Bengaluru
and how should one proceed with properties in such
areas?
In low lying areas, people do not buy ground floor flats without checking if
adequate flooding protections have been accounted for.
In the past, Bengaluru had a network of lakes that were naturally
interconnected. Rainwater run-off filled a lake and then naturally flowed
down into a lower-lying lake, and flooding was thus extremely rare.
However, over the last couple of decades, this natural anti-flooding network
has been lost due to urbanisation and construction on lake beds and
connecting water drainage paths. This loss of water channel connectivity,
clogged storm water drains and no open land for water percolation with 45%
of the city being built over have increased the number of areas that flood
during the monsoon and in fact, even in occasional heavy rain.
So the important question is not really whether the area you are interested in
is low-lying but rather if it gets flooded easily in a heavy shower. The list of
such areas keeps changing based on whether corrective action for storm water
drain management is undertaken. In June 2013, BBMP identified 1077 areas
in the city that are prone to flooding. A paper published by IISc on Urban
Floods explains how much rainwater run-off occurs during the monsoon in
each area and how much surplus water in each catchment area becomes
‘overland flow’, both of which can contribute to flooding.
While Bengaluru’s topography is generally flat, it has many gentle
undulations. Thus, while assessing a property, be aware that many areas in
the city have localised low-lying regions within them. It has been impossible
to capture the details of low-lying and/or flooding-prone areas accurately in a
single list at the time of publishing this guide. We recommend that potential
buyers ask around multiple neighbours and shops in the area on whether the
area is low-lying or has seen flooding recently. Inquiries with long-term
residents are usually helpful.
Tips for buying properties in low-lying areas:
i. In low-lying areas, instead of basement parking, prefer properties with
stilt parking with pile foundation and raised at least 2 feet above ground
level.
ii. Ensure that the area has proper storm water drains in place.
iii. Check that the property being considered, especially in the case of
apartment complexes and gated communities, has proper rainwater harvesting
(RWH) systems in place. RWH helps to conserve local run-off water and
reduces the chances of flooding.

5. Are there legal restrictions in place around airports

regarding high-rise apartments?
Bengaluru has 4 aerodromes, the old HAL Airport, the Kempegowda
International Airport Limited, the Yelahanka Defence Aerodrome and the
Government Flying Training School, Jakkur and they have aviation
restrictions pertaining to the location and height of buildings built nearby.
Zoning maps for height regulation of each airport are available with the
concerned airports.
Construction restrictions around airports are covered in detail in the
following chapter.
What to know before buying flats in
high-rise apartments around airports
in Bengaluru

Did you know that high-rise towers around airports need

extra clearances before builders can erect structures? If you
are buying an apartment in a high-rise tower in Bengaluru,
be aware that height restrictions exist for all of Bengaluru’s
four airports.
If your apartment happens to be on a floor that is above the
permitted height, it is liable to be demolished. Demolitions
over regulatory violations are not frequent, but this risk
does exist. More importantly, the Sakrama regularisation
rules do not apply to such deviations.

Height restrictions for buildings near airports come from a basic rule. A
minimum of 500 feet (150.40 m) vertical separation is required to be
maintained from an in-air aircraft to any object on the ground. Under Section
9 (A) of the Aircraft Act, 1934, the Ministry of Civil Aviation of India has
imposed height restrictions on the construction or erection of any vertical
structure around every aerodrome in the country.
Bengaluru has four airports. One is the main civilian airport, the
Kempegowda International Airport (KIA) at Devanahalli formerly known as
the Bengaluru International Airport. The other three are defence
airports/aerodromes: the old HAL Airport, Yelahanka Defence Aerodrome,
and the Government Flying Training School Jakkur (GFTS).
For all four airports, aviation restrictions pertaining to the location and height
of buildings built nearby are applicable. Zoning maps for height regulation
for each airport are available with the concerned airports. The permissible
height of the building depends on the elevation from the above mean sea
level (AMSL) at the building’s planned location and its distance from the
concerned airport.
1. Why should I worry about the height of a building
near an airport?
Aeroplanes hover above the airport vicinity until the runway is clear for
landing. As a plane descends, the height between the structures and the plane
decreases, increasing the risk of hitting any object that has not adhered to
height norms. This can prove dangerous for the aircraft, the residents of the
building and the surroundings.
2. If you are buying or investing in a property near
HAL, KIA, Yelahanka or Jakkur aerodromes, what
does the word ‘near’ mean?
The area around an airport has construction restrictions based on the location
of the property based on the distance from the runway. While ‘no
construction’ zones are applied around the runway itself, the height
restriction eases out as you move further away from the airport. Restrictions
on height are different at the radius of 5 km, 20 km and 56 km from the
airport.
3. What are the approvals that builders need to get for
constructions near airports?
A Ministry of Civil Aviation Notification no. SO84, dated 14 January 2010
mandates that all vertical structures near an airport should procure a height
certificate from an agency/civil engineer certified from the relevant
government body. This agency measures the height of the ground elevation at
the point where the building is planned, with respect to mean sea level and
provides a certificate. This certificate has to be authenticated by a local
authority, usually the Town Planning engineers of the BDA/BBMP. This is a
prerequisite for the NOC to the builder.
For example, the elevation certificate may say that a certain location near
Hebbal Lake at the specified latitude and longitude is 898 m AMSL. The
Bengaluru region has varying elevations. Higher the ground elevation, the
shorter will be permitted height for a building at that location according to the
airport’s rules. The lower the ground elevation, the greater will be the
permitted height.
Projects built at a distance of within 20 km from any aerodrome require the
developer to obtain an NOC from the respective airport authorities. High-rise
buildings measuring over 150 m built beyond 20 km up to the 56th km
around a civilian airport also need such NOCs.
Only after the developer obtains these NOCs will the relevant authority
(BBMP, BDA or BIAAPA) issue the Plan Sanction. For high-rise buildings,
additional NOC from the Fire Department is also required. Thus, before you
buy a home in a high-rise building, ask the developer to include these
documents for your scrutiny.
4. Who are the issuing authorities for NOCs for
buildings around Bengaluru’s airports?
The table shows the authorities responsible for Plan sanctions and NOCs. If a
high-rise lies in an area that overlaps with the 20 km radius of two or more
airports, it requires NOCs from each of the airports. For example, a building
coming up in between Yelahanka Defence Aerodrome and KIA needs NOCs
from both the concerned authorities.

Airport Authority for height NOC Plan sanction issuing authority

KIAL Air Force Authority of India BIAAPA

HAL HAL chief BBMP

Jakkur GFTS Aerodrome Supervisor BBMP

Yelahanka Aerodrome Supervisor BBMP

5. What are the actual height limits around airports?
The Aircraft Act, 1934, defines three zones around airports with different
height limits. The notional centre-point of an airport is called the Aerodrome
Reference Point (ARP) and is used to calculate all distances from the airport
itself.
The three zones are:
• 5-km radius from the ARP or Inner Horizontal Surface
• In a radius of 5–20 km from the ARP or Outer Conical Surface
• In a radius of 20–56 km from the ARP or Outer Transitional Surface
i. Height restrictions for buildings in the vicinity of
civil airports
(a) Restrictions around international civil airports:

Distance from the

Permitted difference between the elevation
aerodrome reference point
of the top of the buildings/structures of
(ARP) to
installations and the elevation of the
buildings/structures or
aerodromes (ARP) itself
installations

8534–22224 m Less than 152 m

7315–8534 m Less than 122 m

6096–7315 m Less than 91 m

4877–6096 m Less than 61 m

4267–4877 m Less than 49 m

3658–4267 m Less than 37 m

3048–3658 m Less than 24 m

2438–3048 m Less than 12 m

Nil except with the prior concurrence of the

Less than 2438 m
local Aerodrome Authority
(b) Other civil airports and civil aerodromes:

Distance from the

Permitted difference between the elevation
aerodrome reference point
of the top of the buildings/structures of
(ARP) to
installations and the elevation of the
buildings/structures or
aerodromes (ARP) itself
installations

7925–22324 m Less than 152 m

6706–7925 m Less than 122 m

5486–6706 m Less than 91 m

4267–5486 m Less than 61 m

3658–4267 m Less than 49 m

3048–3658 m Less than 37 m

2438–3048 m Less than 24 m

1829–2438 m Less than 12 m

Nil except with the prior concurrence of the

Less than 1829 m
local Aerodrome Authority.
BBMP by-laws include the airport authority rules. BDA too has the same by-
laws. Hence, within BDA and BBMP limits, regarding aviation safety, the
rules of the Ministry of Civil Aviation are final and binding.
However, the planning authority for KIA is the BIAAPA; it has a more
conservative limit of 25 m (G + 7 floors) as the maximum height allowed.
This is applicable and is followed in the areas surrounding the KIA, which do
not fall under BBMP and BDA limits.
ii. Indian Air Force height restrictions for defence
aerodromes
The HAL airport, which was previously used as a civil airport, went back to
being a defence airport in 2008, when KIA was inaugurated. However, the
rules for the NOC around HAL remain the same as before and are more or
less similar to the civil airport’s rules.
Yelahanka Defence Aerodrome and GFTS in Jakkur are two other defence
aerodromes; these are generally out of the public eye. However, for
constructions around them, permission from the relevant authorities is
necessary.
The aerodromes fall under the Central Defence Ministry, and NOCs for
planned structures are given by the respective Chief Operating Officer (COO)
for each of the aerodromes. The rules for issuing NOCs are governed by the
Aircraft Act, 1934, identical to civilian airports.
This means that every planned building within a radius of 20 km from these
two aerodromes need to obtain NOCs from the COO of the applicable
aerodrome.
6. In what circumstances would an already obtained
NOC become invalid?
It is critical for a buyer to check if the builder has all required NOCs and
permissions for the building.
In addition, it is useful to check the data submitted by the builder to obtain
the NOC itself. For this, a buyer needs to ascertain the elevation/height and
the exact location (latitude and longitude) of the property submitted by the
builder to obtain the NOC. There are cases of a few builders mis-stating the
location in order to show a lower ground elevation, thereby obtaining an
NOC to build more floors, since the permissible height will be greater.
The time limit for the NOC also needs to be checked, as sometimes the NOCs
may have lapsed by the time the construction begins. The Airport Authority
of India (AAI)-issued a circular (ATMC Circular 2, 2013) stating that NOCs
from airports are non-transferable. The validity of an NOC for a building is 5
years, while that for chimneys/transmission lines/masts is 7 years. In case of
a change in the ownership of a property, the NOC may used by the new
owner for the remaining time period.
If the data presented by a builder to obtain an elevation certificate for the
NOC are found to be false, the portions of buildings that are considered to
adversely affect aircraft operations will be demolished at the owner’s cost.
This is applicable even if an NOC issued by the relevant authority is
available. In fact, this point is mentioned in the NOC itself, as the authorities
issue NOCs assuming that the details submitted by the builder are correct,
without actually verifying them.
7. Is Bengaluru seeing a lot of violations in regard to
high-rises around airports?
It would be unfair to make a sweeping statement that the city is full of
violations of this type. However, there are documented cases of height
violations by means of submitting the wrong height or location. Height
certificates are procured from government-certified agencies or civic
engineers. Civil society organisations and architects point out that agencies
and engineers are often bribed and inaccurate certificates are thus procured
and authenticated.
In 2011, the AAI established an online application portal for developers to
file for NOCs. With this, documents such as the elevation certificate, land co-
ordinates, property tax receipt, architect-signed layout plan etc. can now be
submitted online as well as in person within 20 days of the application.
8. What should buyers know about the verification
process for NOCs?
Currently, no single officer checks the data and location submitted in the
height certificate and other documents for NOCs. According to officials, the
present system of issuing NOCs is not capable of identifying errors or
misleading data in the documents submitted by the builders.
Since the part of the construction affecting aircraft operations will be
demolished at the cost of the owner, it would be prudent for a buyer to use
GPS and other tools available to independently find out the ground elevation
in terms of AMSL as well as the exact latitude and longitude for the property
in consideration. Using these data, the buyer can determine the permitted
height for the building above ground level and check whether they are the
same as in the NOC provided. Similarly, the buyer can also check whether
the height of the floor where s/he is buying a flat and the topmost floor of the
building are within the prescribed limits.
 An NOC issued by Airports Authority of India. Note in this example the
permitted height of a building at the particular location is 976.2 m based on
distance from Kempegowda International Airport. Since the ground elevation
(above mean sea level) at that location is 898 m, the allowed building height
becomes 78.2 m.
LEGAL-ILLEGAL AND
DEVIATIONS
Bengaluru’s great law for deviations:
‘Akrama Sakrama’

By many estimates, more than 80% of buildings in Bengaluru are built with
some violations, which means that they are ‘illegal buildings’ or are buildings
in ‘illegal layouts’ or both. Building owners who have knowingly or
unknowingly violated building rules have been looking to resolve these
issues once and for all, and the long-pending ‘Akrama Sakrama’ legislation
and its rules are supposed to provide respite from these problems.
The reality is, however, rather complex and messy.
If you are buying a property that is likely to have or has by-law violations (or
has deviations from the sanctioned plan), or in a layout that was not
sanctioned by the right town planning authority, you may inherit the cost of
fees required to regularise your building, if the owner or developer has not
already regularised it.
This chapter brings you up to speed on this important topic.
1. What is ‘Akrama Sakrama’?
The ‘Akrama Sakrama’ is a piece of legislation meant to legalise existing
violations in buildings by paying fines. The Karnataka state government
published the draft rules for Akrama Sakrama on 31 December 2013, and
buildings constructed before 19 October 2013 are eligible for regularisation
by paying the relevant fine(s). This law has been in the making for several
years under many Karnataka CMs and governments and now has been finally
brought into force by the Siddaramaiah-led Government.
Akrama Sakrama is a result of a major amendment to the Karnataka Town
and Country Planning Act. It is also known as Karnataka Town and Country
Planning (Regularisation of Unauthorised Developments) Rules 2013. Its
original intent was to bring decorum to the process of urbanisation.
Karnataka Town and Country Planning Act covered demarking land use as
commercial, residential and mixed in urban areas; prescribing setback
proportions for buildings; parking and fire clearance requirements for various
buildings and punishment for encroachments and other important issues.
Over time, various amendments have been made to include or slightly change
the directives applicable to buildings. Akrama Sakrama directly allows
building deviations to be regularised by paying a penalty—meaning, the
existing deviations need not be physically corrected and will remain forever.
The bill is a one-time regularisation of a whole gamut of building deviations,
illegal constructions and changes in land use type in urban areas. Certain
regularisations—such as changing land use—have important implications for
the city and its citizens. This law will not only add crores of rupees to the
state’s coffers from an unknown number of deviations, it will give the
concerned officials ‘powers’ as they will be the ones assessing deviations and
collecting the penalties. This will also allow individuals and firms who are
financially capable to regularise the structures with fines without making any
alterations.
Introducing the bill has involved many problems. Previously, when the
government called for objections to the proposed law, owners of buildings
with deviations objected to the supposedly high penalty amount. In contrast,
civil society groups and the High Court objected to the extent of the
violations being regularised. In fact, Karnataka’s Governor sent the bill back
twice, suggesting that the government re-frame some of the existing rules,
draft a time-frame for the law without provision for extension, ensure that the
scheme does not benefit the real-estate mafia, and have absolutely no room
for conversion of residential buildings into fully commercial buildings.
The Akrama Sakrama was finally tabled in the last Assembly session, passed
by our lawmakers on 2 December 2013, and notified on 31 December 2013.
A 3-month time period (starting from 31 December 2013) has been given to
property owners to apply for the regularisation of deviations under the
Akrama Sakrama law.
Although the bill has been notified, several questions remain unanswered,
such as what action will be taken on buildings whose deviations are more
than the said regularisation ceiling. While there is no mention of action
against the official and executive machinery that allowed these deviations, it
is safe to assume that the same officials will be responsible for implementing
the new law.
2. How do I know whether there is a deviation and if so
the extent of it?
You need an engineer or architect who is familiar with town planning and
BBMP building by-laws for this. The engineer can visit the property and
compare it with the sanctioned plan and determine if there is a deviation, and
also the extent.
3. How does Akrama Sakrama affect you if the building
you are buying has a deviation?
i. In the BBMP city limits area, building deviations in residential and
commercial buildings that are built up to 19 October 2013 can be regularised.
ii. The approved bill allows the regularisation of deviations up to 50% for
residential buildings and up to 25% for commercial buildings. Building
owners can regularise their building deviations by paying a penalty. For
residential buildings, the penalty is 6% of the guidance value of the irregular
portion if the deviation is less than or up to 25% and 8% if the deviation is
higher than 25%, i.e. till 50%.
iii. For commercial buildings, the penalty is 20% of the market value for
less than or up to 12.5% deviations and 35% penalty for deviations more than
12.5% (up to 25%). The proposed bill also indicates regularisation of
unauthorised residential buildings on revenue land.
iv. The bill lists out violations eligible for regularisation, conditions and
terms for calculation of violations, forms that need to be filled, supporting
documents required and the steps that need to be followed by you as well as
the procedure that will be followed by the authorities.
v. Read the text of the draft rules here:
http://bangalore.citizenmatters.in/articles/government-publishes-akrama-
sakrama-draft-rules or download the pdf from
http://www.uddkar.gov.in/sites/uddkar.gov.in/files/image/UDD%20556%20MYAPRA%20
vi. Hard copies of the same are available at the Urban Development
Department, Vikas Soudha, Bengaluru.
4. When is regularisation under Akrama Sakrama not
allowed?
When you are buying a property, before the sale is concluded, check whether
the property needs regularisation and whether the regularisation itself is
possible.
Regularisation by paying fines is not allowed if the site is situated as follows:
i. On land abutting to storm water drains, tank bed areas, river course or
river beds, canals or below high-tension electric lines
ii. In land reserved for parks, playgrounds, open spaces or in spaces meant
for providing civic amenities
iii. Any development in the basement in violation of the uses permitted in
the Zoning Regulation or its by-laws
iv. Development/building in an industry categorised as ‘RED’ by the
KSPCB will be regularised only with clearance from the KSPCB.
v. Developments not conforming to rules for high-tension lines and fire
protection measures
vi. Developments subject to Coastal Zone Regulations of the Ministry
Environment and Forest, Government of India
vii. Developments in violation of setback norms exceeding 25% in case of
non-residential buildings and 50% in case of residential buildings.
viii. Developments for which a violation related to change in land use has
not been regularised first
ix. Unauthorised construction or development made in agricultural zone of
approved Master Plan or green belt area declared under Karnataka Land
Revenue Act, 1964
x. Buildings located in areas of special control/other protected areas,
where it violates the regulations prescribed for such areas
xi. In land affected by the alignments of any existing or proposed inner ring
road, national highway, bypass road, outer ring road or mass rapid transit
system (rail) projects
xii. On land belonging to the State Government or the Central Government
or connected with any building belonging to the State Government or the
Central Government
xiii. On land belonging to any Board or Corporation owned or controlled by
the Central Government or the State Government
xiv. On land belonging to, or vested in, any Urban Development Authority
or BDA
xv. On land belonging to, or vested in, a local authority
5. Which authority is responsible for regularisation?
i. Regularisation of unauthorised or subdivided
land/layouts
• Regularisation of plots in unauthorised or sub-divided land/layouts
is
intended to be carried out by the concerned Planning Authority. For
Bengaluru, this refers to the BDA, BMRDA, BIAAPA etc. depending on
the jurisdiction (see Chapter 1 for info on these authorities).
• Agricultural land regularisation will be considered only after conversion
is done under section 95 of the Land Revenue Act, 1964.
ii. Regularisation of buildings with land use violations
• Regularisation of buildings with land use violations is to be done by the
concerned Local Authority within its jurisdiction. For example, for
properties in BBMP jurisdiction, the regularisation will be done by BBMP.
• Applications related to regularization of unauthorised buildings outside
the Local Authority limits but within the Local Planning Area shall be
submitted to the concerned Planning Authority. For example, authorised
buildings outside BBMP limits but within BDA limits come under BDA’s
purview for regularisation.
iii. Regularisation of apartments/group housing
complexes
In the case of regularisation of apartments and group housing complexes such
as gated communities, individual owners cannot apply for regularisation. The
application has to come jointly from all the owners or the concerned
residents’ welfare association (RWA) or owners’ association (OA). Thus, if
you are buying an apartment in a complex, it is the OA that is responsible for
applying for regularisation rather than the individual buyer or the
seller/former owner.
6. Bengaluru citizens’ objections to Akrama Sakrama’s
rules
Many citizens have filed their objections to the government’s draft rules in
January 2014. We have compiled these objections here. It is not clear at the
time this guide went into print whether the government will address these
issues in its final notified rules.
i. Objections on overall legality of the scheme
• The Metropolitan Planning Committee (MPC) having been established,
the planning of the city, including land use, must be routed through this
statutory body and cannot be passed by the State government
independently.
• The matter at hand is subjudice in the High Court of Karnataka, via
various Public Interest litigations. No effort has been made by the BBMP to
either seek clarifications in the high court or vacate interim orders.
• The draft rules lack any punitive measures against officials for
permitting violations. Regularising violations goes hand-in-hand with
allowing such violations, and the Act allows the same officials who are in
charge of preventing violations, and yet permitted them, to now determine
the level of deviations and impose fines.
• Violations of building plans cause hardship to neighbours, and the
government has no locus standi to excuse this on their behalf. The consent
of neighbours must be sought in these cases.
 • The entire masterplan or CDP process for the city, either in the past or
future, is nullified by this scheme. Regularisation of the kind proposed is
the antithesis of a planned city/town.

• The government has never shown good faith in ending illegal

constructions. Every iteration of its efforts has led to a new ‘cut-off’ date.
No effort has been made on the ground or in terms of cutting back on
violations. In this context, the Act appears as a money-making scheme
without any regard to a planned city, which is a central tenet of the
Karnataka Town and Country Planning Act.

• This act appears to be essentially meant to help dishonest people who

have willingly violated the law, with full awareness of the exact extent by
which their construction exceeds the limits of deviations.
• It will not help most apartment complexes, because the OA or RWA has
no means of knowing whether their building(s) meets all the applicable
laws. It is not in the interest of the builder to disclose such deviations, and
unless there is a third-party audit of all buildings, these will never be
revealed.
ii. Objections to specific items of the rules
• The draft says regularisation fees are to be borne by the owner of the
property. In the case of apartments, this essentially lets the builder—the
principal party that has caused an illegality—go scot-free. The scheme as
envisaged lets big violators and builders off the hook.
• Levels of ‘allowed violations’ are arbitrary and not backup up by data.
No effort has been undertaken to either establish the levels of violations or
extents of violations.
• The rules and act are very vague regarding the action that would be
taken against buildings that are not eligible for regularisation. There has
been nothing stopping the government authorities, to take action under law
against large-scale violators. This again demonstrates that the scheme is
designed to just collect money, without penalising major violators.
• The process of scrutinising and allowing violations is faulty. The same
officials who have allowed these illegalities to occur are the ones entrusted
to condone/sanction violations. This severely compromises the integrity of
the process.
• There is a lack of transparency in the scrutiny process. All applications
for regularisation should be in public domain with all the details. It should
be open to the public for scrutiny and for comments from the
neighbourhood as to the veracity of disclosed details in the application.

• The parameters for allowing violations are faulty, e.g. the requirement
of adequate parking, as laid down by law, is not considered. Therefore, a
building exceeding the Floor Area Ratio or with zonal violations can be
regularised irrespective of whether the building has adequate parking. This
essentially compromises space in public property and roads, where such
parking will occur. However, other rules mention that violations pertaining
to basement use (often planned for parking purposes) are not permitted. The
rules are thus inconsistent for buildings without basements sanctioned for
parking.
• The penalty fees are the same for a person who has violated any by-laws
recently as well as for someone who reaped the benefits of such violations
for many years, e.g. extra space or extra rent income. This is illogical, and
fees should be higher for long-term violators.

• Many of the violations included under the law are reversible, e.g.
basements being converted into shops. There is no valid reason why such
deviations should be regularised.
• The indirect yet continuing cost of the violation is not considered in the
law. This is especially true for parking space violations. For example, when
commercial buildings lack parking space, all the vehicles are parked on the
nearby roads (and even pavements), leading to unnecessary congestion,
reduced space for pedestrians and traffic jams.
• Many of the existing buildings do NOT follow Part IV of the National
Building Code (Fire and Life Safety). Any violation in this regard would
 make the existing situation even worse (e.g. by cutting off exits or
narrowing the escape routes). The Akrama Sakrama legislation will allow
and condone such life-threatening violations in exchange for money, which
is completely unethical.
iii. Objections regarding apartment complexes
• The rules state that RWA representatives can apply for regularisation of
deviations. This provision can be misused to regularise a problem that is
rampant in Bengaluru: As per Building By-laws, 10% of the parking must
be reserved as ‘visitor’s parking’. As per the Karnataka Apartment
Ownership Act (KAOA), 1972, this is a common area under the joint
ownership of the RWA. However, many builders sell off this common area
to owners. At present, they have no way to regularise such ‘sales’.
However, such owners and builders can attempt to regularise the ‘sale’
under Akrama-Sakrama. In this case, the same area would be designated as
‘common area’ as per records but as ‘private property’ as per the
‘regularised’ documents. Thus, the records pertaining to the property would
lose their authenticity.
• This also violates KAOA clause 6(3), which stipulates that ‘The
common areas and facilities shall remain undivided and no apartment
owner or any other person shall bring any action for partition or division of
any part thereof. Any covenant to the contrary shall be null and void.’

• KAOA also stipulates that any change (mutation) in the original

property must be done with CONSENSUS (not a majority vote) by ALL the
members of the RWA (owners). Further, such changes are NOT valid till
the relevant documents are amended and re-registered. However, there are
no such conditions in the Akrama Sakrama act, which allows any vested
interests to apply for ‘regularisation’ without the knowledge and consent of
the victims.
• This point also conflicts with the Registration Act, 1908. In this context,
the Supreme Court of India has ruled that such activity is illegal, and ‘in
future, builders do this at their own peril’ (Ref: Civil Appeal No: 2544 of
2010, Nahalchand Laloochand Pvt. Ltd. vs. Panchali Co-operative Housing
 Society Ltd.). This case was based on the Maharashtra Apartment
Ownership Act (MAOA) and Maharashtra Ownership of Flats Act (MOFA)
which are identical to the KAOA and Karnataka Ownership of Flats Act
(KOFA), respectively (indeed, the Maharashtra acts were released in 1969
and copied by Karnataka in 1972). Therefore, this verdict applies to
Karnataka apartments in toto.
• The rules thus need to be amended to categorically state that any case in
such matters will be taken up only after due process is completed as per
KAOA and also the Registration Act; further, in case of any conflict, the
original Deed of Declaration will prevail.
Citizens expect that these objections are being taken seriously and the reasons
for any of the objections that are not incorporated in the final rules will be
communicated in the public domain. Neither the government’s decisions on
the objections nor the final rules for Akrama Sakrama have been announced
at the time this guide went into publication.
ALL ABOUT REGISTRATION
Documents needed for registering a
property

Registering your property ensures that the title, rights, and

controlling interest are transferred to your name and that it
becomes a permanent public record. This further ensures
that the records are preserved with the competent authority
thereby ruling out the chances of fraud. Registering a
property in Bengaluru does not take much time if you have
all the documents ready for validation.

1. What do I need to do before I can register my

property?
i. Keep all the required documents in order. To know what documents are
mandatory for registering your property, see section 2.
ii. Contact the sub-registrar’s office under whose jurisdiction your property
is located
iii. Understand the relevant article of the Stamp and Registration Act which
is referred to for the registration your property
Once these basic requirements are met, it is relatively easy to register a
property and obtain the registration document within 30 minutes after
meeting the sub-registrar.
Usually the seller registers the sale deed at the sub-registrar’s office with
buyer. The buyer then takes the original sale deed (registered) away as part of
the sale, and the seller keeps a copy.
Registering any immovable property—a vacant site, flat or independent home
—involves the same process.
2. What are the documents required?
i. In case of purchasing or selling a flat
• Sale deed from the builder (in case of a new flat) or the seller (in case of
resale). The sale deed is a document which states that the seller has
forfeited all rights and the title to the property and that the purchaser is the
sole title holder of that property.

• Declaration or affidavit on a plain paper from the seller and buyer,

stating that the registration of the sale deed does not violate the Land
Revenue Act and the Land Reforms Act.
• Encumbrance Certificate: This is required if you are buying a resale
flat/apartment. You can download the application form for the EC from the
website of the Department of Stamps and Registration or obtain it from the
sub-registrar’s office.
• Khata: This is an account statement of your property which also has the
property identity number. You can download the application form from the
BBMP website or visit the concerned gram panchayat to obtain the Khata.
a. If the property is within BBMP limits, you have to obtain the A or
the B Khata.
b. If the property is within gram panchayat areas, you will require
Form 9 and Form 11.
Form 9 is the tax assessment register extract of the property, and it lists
the details of the property such as the site number, built-up area,
boundaries, and annual tax. This form is issued by the gram panchayat
for non-agricultural properties in its jurisdiction.
Form 11 is the tax demand register extract, also called the Register of
Demand, and it lists out the documents issued by the gram panchayat
for non-agricultural properties in its jurisdiction.
To apply for your Khata (Forms 9 and 11), you must send an application
 to the Panchayat Development Officer (PDO) on plain paper.
• Property tax payment receipts for the current year (only in case of a
resale property)
• Agricultural/Non-agricultural Land Document: This document states
whether the land in question is agricultural land or not. If it is agricultural
land, a conversion certificate obtained by the builder must be attached.
• NOC: If your property is a BDA, BMRDA, or BIAAPA property, an
NOC from the concerned department is required.

• Approval plan for the flat or apartment obtained by the builder from the
planning authority
• Completion certificate obtained by the builder from the planning
authority
• Form 1: This is a statement of the particulars of the property and its
market value under Rule 3 of the Karnataka Stamp (Prevention of
Undervaluation of Instruments) Rules, 1977. This is a record to ascertain
whether or not the property has been undervalued.
• PAN card copy of both the buyer and the seller and Form 16 if the
property value is over Rs. 5 lakhs.

• Form 16 or the salary statement is issued by an employer to an

employee detailing salary and other income and tax which is deducted at
source. This certificate is used to file income tax returns.
• Form 60: This is a declaration which must be submitted if the PAN
card or General Index Number is not available and the transaction involves
cash.
• Form 61: This is a declaration which must be submitted by a person
with only an agricultural income with no other known sources of income
who does not have a PAN card or General Index Number and who deals in
a cash transaction
ii. In case of purchasing or selling a site or purchasing
or selling a house on a site
• Sale deed from the builder (in case of a new flat) or the seller (in case
of resale). The sale deed elucidates that the seller has forfeited all rights and
title to the property and that the purchaser is the sole title holder of that
property.
• Declaration or affidavit on a plain paper from the seller and buyer,
stating that the registration of this sale deed does not violate the Land
Revenue Act and the Land Reforms Act.
• PAN card copy of both the buyer and the seller and Form 16 if the
property value is over Rs. 5 lakhs.
• Form 16 or the salary statement is issued by the employer to the
employee detailing salary and other income and tax which is deducted at
source. This certificate is used to file income tax returns.
• Form 60: This is a declaration which must be submitted if the PAN
card or General Index Number is not available and the transaction is in
cash.
• Form 61: This is a declaration which must be submitted by a person:
a. with only an agricultural income with no other known sources of
income
b. who does not have a PAN card or General Index Number
c. who deals in a cash transaction
• Encumbrance Certificate: You can download the application form
from the website of the Department of Stamps and Registration or obtain it
from the sub-registrar’s office.
• Conversion details or the sanction plan if the property is on a converted
land.
• Revenue documents such as the Khata, Forms 9 and 11, and the RTC.
a. If the property is within BBMP limits, you have to obtain the A or
the B Khata.
b. If the property is within gram panchayat areas, you will require
Form 9 and Form 11.
Form 9 is the tax assessment register extract of the property and lists
the details of the property such as its number, built-up area, boundaries,
and annual tax. This form is issued by the gram panchayat for non-
agricultural properties in its jurisdiction.
Form 11 is the tax demand register extract, also called the Register of
Demand, and it lists out the documents issued by the gram panchayat
for non-agricultural properties in its jurisdiction.
c. To apply for your Khata (Forms 9 and 11), you must send an
application to the PDO on plain paper.
d. The RTC or Pahani contains details of the land in question such as
the owners’ details, area, assessment, water rate, soil type, nature of
possession of the land, liabilities (if any), tenancy, and crops grown.
This document is needed to ascertain the legitimacy of the seller.
To obtain the RTC, you must apply to the Tehsildar or the panchayat
accountant.

• Land survey sketch on Form 11E: The sketch is required if the

property has been bifurcated.
• Property tax payment receipt (only in case of a resale property).

• Conversion certificate: This is a document stating whether the land in

question is agricultural land or not.
• NOC: If the property it is a BDA, BMRDA, or BIAAPA property, an
NOC from the concerned department is required.
• Approval plan obtained by the builder
 • Completion certificate obtained by the builder.

• Form 1: This is a statement of the particulars of property and its market

value under Rule 3 of the Karnataka Stamp (Prevention of Undervaluation
of Instruments) Rules, 1977. This form is required mainly to validate that
the value of the property is not less than the guideline value and prevent
undervaluation of the property.
• If the property belongs to the BDA, KHB, Rajiv Gandhi Housing
Society (RGHS), BIAAPA, or BMRDA, you are required to submit these
documents:
a. Grant certificate
b. NOC from the Tehsildar regarding the sale of the property
3. If the original sale deed is lost, how can the seller fix
this?
First, you are required to file a complaint at the local police station stating
that you lost the sale deed. This can be a regular complaint, and not an FIR.
Second, you need to issue a public notice (newspapers) announcing loss of
the deed and asking for information from anyone who may have found it.
Third, contact the sub-registrar’s office and obtain a certified copy of the
sales deed. The sub-registrar’s office maintains all the records of the
properties in the concerned jurisdiction.
To apply for the certified copy of the sales deed, you must enter the relevant
details in Form 22. You may download this from the department website or
obtain it from the sub-registrar’s office.
A charge of Rs. 120 is levied for the first 10 pages of the copy. Subsequently,
the cost per page is Rs. 2.
With the certified copy of your sale deed, keep the copies of the police
complaint and public notice handy.
How much do I pay to register a
property?

It is not only important to have the right set of documents

for registering your property, it is also important to know
the amount you have to pay for registration and understand
the cost break-up.

At the office of the Stamp and Registration department, the fees for all
properties, flat or site, is collected in two parts. These components are stamp
duty and registration fee. While these two components vary depending upon
the size, location, and type of property, the department also collects a blanket
fee called the scanning fee. Since the department does all the scanning and
paperwork, apart from the office charges, they collect Rs. 35 per page per
side as the scanning and service charge.
According to department officials, the service and scanning charge is
collected because the sub-registrar goes through each page, scrutinises all the
documents, and based on the type of deed, decides which article is relevant to
the deal, scans the documents for computer and government records and then
issues the registration. Thus, this fee covers all these components.
On corruption, the department officially maintains an anti-bribe position.
Officially, if you as a seller or buyer are facing difficulties, you can complain
to the department head office at +918022220672 or +918022220358 or post
your complaint on
http://www.karunadu.gov.in/karigr/aspx/feedback/feedback.aspx.
What are the fee amounts involved?
As per Article 20 of the Stamps Act, the Department of Stamps and
Registrations collects the registration fees. The department divides the fee
structure based on the article the category (for e.g. sale of immovable
property, gift deed, mortgage etc.) falls in. The most common in the list is
purchase of property, and the concerned fee is called the conveyance charge
by the department.
The fee break-up can be viewed at
http://www.karunadu.gov.in/karigr/stampdutyregistration/default.htm.
1. For agreements of sale of immovable property
On
Tariff
Document

Without possession: 0.1% of the market value. This should not

Stamp duty
be less than Rs. 500 and must not exceed Rs. 20,000.

Registration With possession: 1% of the market value

fee Without possession: Rs. 100
Note:
• A property is said to be ‘with possession’ when the property is handed
over to the purchaser.
• A property is said to be ‘without possession’ when the seller has not
handed over the possession of the property to the purchaser.

2. Conveyance charges on flats/sites

On
Tariff
Document

• 5% of the market value of the property or the consideration

value, whichever is higher.
• An additional 10% as infrastructure cess on the 5%.

Stamp duty • For urban areas, an additional 2% surcharge on the 5% value

 • For rural areas, an additional 3% surcharge on the 5% value
[Note: This would total to 5.6% in urban areas and 5.65% in
rural areas.]

Registration
1% of the market value
fee

Scanning Rs. 35 per page per side

For example, if a property costs Rs. 1 crore:

• Stamp duty = Rs. 5.6 lakhs in urban areas

• Stamp duty = Rs. 5.65 lakhs in rural areas

• Registration fee = Rs. 1 lakh

• Scanning charge for 10 pages of documents = Rs. 350

• Total fee for property = Rs. 6,60,350

3. For conveyance on Transfer of Development Rights

The Transfer of Development Rights (TDR) certificate is granted to a land
owner who transfers a part of the land to the government for public purposes
such as road widening, development of public parks and playgrounds, and
maintenance of heritage buildings. The owner of such land receives a
Development Rights Certificate (DRC) which could be used by the person to
construct additional floors or to sell the TDR to another person.

On
Tariff
Document

1% of the market value or the consideration value, whichever

Stamp duty
is higher

Registration
1% of the market value
fee
4. For exchange of property
On
Tariff
Document

• 5% of the market value of the property or the consideration

value, whichever is higher.

Stamp duty • An additional 10% as infrastructure cess on the 5%.

• For urban areas, an additional 2% surcharge on the 5% value

• For rural areas, an additional 3% surcharge on the 5% value

Registration
1% of the market value
fee

5. For gifting a property

On Document Tariff

If the Donee is a family member

• Rs. 1000 on the sales deed

• An additional 10% as infrastructure cess on the 5% value

• For urban areas, an additional 2% surcharge on the 5%

value
• For rural areas, an additional 3% surcharge on the 5%
value
Stamp duty
If the Donee is not a family member
• 5% of the market value

• An additional 10% as infrastructure cess on the 5% value

 • For urban areas, an additional 2% surcharge on the 5%
value

• For rural areas, an additional 3% surcharge on the 5%

value

• Rs. 500 if the Donee is a family member

Registration
fee • 1% of the market value if the Donee is not a family
member

6. If the property in question is a lease property

On Document Tariff

Residential property for 1 year

• 0.5% of the total rent paid and not exceeding Rs. 500
Property in commercial and industrial area for 1
year
• 0.5% of the total rent paid
Lease of property for 1 through 10 years
•1% of the average annual return (AAR), advance,
Stamp duty on the premium, or deposit
lease deed Lease of property for 10 through 20 years
• 2% of AAR, advance, premium, or deposit
Lease of property for 20 through 30 years
• 3% of AAR, advance, premium, or deposit
Lease of property beyond 30 years
• 5% of market value, AAR, advance, premium, or
 deposit, whichever is higher

Residential property for 1 year

• Rs. 100
Property in commercial and industrial area for 1
year
• 0.5% and not less than Rs. 100
Lease of property for 1 through 10 years

Registration fee • 0.5% and must not be less than Rs. 100
Lease of property for 10 through 20 years
• 0.5% and not less than Rs. 100
Lease of property for 20 through 30 years
• 0.5% and not less than Rs. 100
Lease of property beyond 30 years
• 1% of market value

7. In case of mortgage of property

Note: Only the mortgager is liable to pay the registration charges.

On Document Tariff

On possession
• 5% of loan value and not exceeding Rs. 50,000

• For urban areas, an additional 2% surcharge on the 5%

value
Stamp duty
• For rural areas, an additional 3% surcharge on the 5%
value
 Without possession
• 0.5% of the loan amount

On possession

Registration • 1% of market value

fee Without possession
• 0.5% of the market value and not exceeding Rs. 10,000

8. In case of partition
On
Tariff
Document

On non-agricultural property
• For property within BBMP jurisdiction, Rs. 1000 per share

• For property within gram panchayat limits, Rs. 500 per

share
On agricultural property
Stamp duty • Rs. 250 per share
On movable property
• Rs. 250 per share
On a combination of the above
• Maximum amount per share applicable in any of the above
categories

On non-agricultural property
• For property within BBMP limits, Rs. 500
 • For property within gram panchayat limits, Rs. 250
On agricultural property

Registration • Rs. 50
fee
On movable property
• Rs. 100
On a combination of the above

• Maximum amount applicable in any of the above

categories

9. In case of property settlement

Settlement of property means transfer of property in writing to the family or
dependents or any other individuals or organization for charitable purposes as
defined under Section 2 (24) of the Indian Stamp Act and Karnataka Stamp
Act.
For example, a parent transferring a part of the property to the child or a
couple transferring the property to one partner as a settlement to divorce will
have to execute the settlement deed.

On Document Tariff

On property being disposed of to non-family members

• 5% of the market value
Stamp duty
On property being disposed of to a member of the family
• Rs. 1000

On property being disposed of to a non-family member

Registration fee • 1% of the market value

On property being disposed of to a member of the family
 • 1% of the market value

10. In case of surrender of lease

On Document Tariff

Stamp duty Rs. 100

Registration fee Rs. 100

COMMON MISTAKES
Common mistakes in property deals

Though most mistakes made while buying a property can

be avoided by a thorough scrutiny of the primary and
secondary documents suggested in the section
Understanding the Fundamentals, there can still be
certain other issues to watch for. In this chapter, we
summarise the common mistakes. which are made in
property deals.

1. While getting your documents scrutinised

i. Do not rely exclusively on the bank’s or builder’s
lawyer’s opinion
Get a competent and independent lawyer to scrutinise the documents to
ensure that the advice you are receiving is entirely in your interest. Ideally,
the lawyer should be a local lawyer because zonal land use and acquisitions
are state government matters.

ii. Lost originals

Sometimes lawyers representing banks have a tendency to be unnecessarily
bureaucratic, with too much importance being given to the originals of all
documents. Originals can sometimes be lost due to human error, and in
such cases, posting a public notice and giving a police complaint about the
lost document(s) should be sufficient. They also tend to be fussy about
small errors in the title documents, which can normally be set right through
a rectification deed.
Note: If you encounter a seller with a lost original sale deed, ask for an
affidavit stating that he/she has not mortgaged the property to a bank.
iii. Family trees
Because of their excessive workload, bank lawyers sometimes tend to
overlook certain crucial details pertaining to the family tree, and they may
accept the title at face value. This could be risky as there might be family
members with claims to the property, and these claims may not show up in
the title documents. So the seller should provide a family tree showing all
the members of the family along with a signed affidavit stating that there
are no heirs, inclusive of daughters, other than the ones mentioned in it. All
members mentioned in the family tree should be present while the sale is
being registered.
iv. Indemnity bonds or conformation bonds
Whenever you feel that some legal heirs have been left out by the seller,
you can draw up indemnity or conformation bonds stating, for example,
that the property in question is not the property of a Hindu United Family
(HUF) and that it is self-acquired, or declaring that all legal heirs have been
disclosed to the buyer.
v. ‘Duplicate’ sale deeds
On occasion a developer or seller may pass off a sale deed marked as
‘duplicate’ as the original. Make sure the copy which you are provided with
is the original. Duplicates are stamped as duplicates; check for this on the
sale deed.

vi. Inspection of original documents

The builder usually has all the original documents, and sometimes, the firm
might have pledged the property to a bank. If so, the builder has to provide
a NOC from the bank prior to registration of the property stating that the
money from the sale goes towards paying of the loan and the property is
free of mortgage.
Usually, you need not ask for scrutiny of original documents when the
property in question is the landowner’s shares of the property, as in most
cases of joint development, the landowner share is free of mortgage.
vii. Directly deal with the owner
 If you deal with a broker, you should be introduced to the owner by the
broker right at the initial stage of obtaining photocopies of the relevant
documents. The broker should only act as the middleman. Sometimes,
developers appoint marketing agents and these agents are put in charge of
giving out documents. Do not make any payments to them (except the
booking amount) for the property. Show the documents to the lawyer, and
find out to whom payments should be made after obtaining a draft copy of
the agreement to sell or the sale deed.
viii.Agreement holders
Agreement holders are persons who have a prior agreement to buy from the
sellers of a property. These agreement holders usually enter into an
agreement after paying an advance and promise to pay the remaining
amount and to registering the property. Many properties, particularly vacant
sites, have such agreement holders. Most agreement holders tend to be
middlemen who do not actually intend to buy the property. Instead, they
look at making profits when the prices rise.
You cannot buy a property from an owner if there is an existing agreement
holder for the property. You should check the EC for any registered
agreements. Since most of these agreements tend to be unregistered, it is
advisable to get the seller to meet your lawyer as this may reveal the actual
situation. Another way of flushing out agreement holders is by circulating a
public notice in prominent newspapers and also by fencing the property
before registration so as to bring any prior agreement holders into the
transaction.
ix. Check if the land is being acquired
All land acquisition for public purposes is notified in the gazette, and land
acquisition for big projects is usually public knowledge. If you feel that the
property which you intend to buy could be notified for such a project, check
with the agency executing the project. The BBMP, BDA, KHB, KIADB,
Namma Metro and NHAI are some of the agencies which you need to
check with to verify if the property is notified to be acquired.
x. Check if the property in question is ‘granted’ land
 Granted lands can be broadly categorised into lands which are non-
alienable (non-transferable) and those which are transferable. All lands
granted to members of the Scheduled Caste and Scheduled Tribes cannot be
transferred without the permission of the state government according to the
PTCL Act, 1978, even after the expiry of the non-alienation period of 15
years. If on the preliminary scrutiny of the primary documents of title, there
is doubt that the land is a granted land, obtain a PTCL endorsement from
the Tehsildar clearly stating that no proceedings have been initiated against
the present owner of the property under the provisions of the Act.
In case of other granted lands, have your lawyer scrutinise the original grant
certificate to check if the conditions of the grant allow for transfer of the
land. Some grants have a non-alienation period of 15 years after the expiry
of which the land can be sold.
xi. Chain of titles
It is advisable to check the chain of titles for the last 30 years in order to
rule out minor interests. In case of family members who are minors during
the sale, you will have to wait for them to turn 18 years of age, even after
which they have another 3 years to declare a sale made during their
minority a voidable sale.
The purchaser who becomes the new owner after the sale, can defend his or
her interests better if an indemnity bond is collected from the seller as
explained in point iv.

xii. Agreement of sale

The agreement of sale which you enter into with the developer/seller has to
have a stamp duty of 0.1% of the value of the property. If it is
understamped and subsequently there is a dispute with the seller, the courts
will not consider the agreement as evidence. You can rectify an
understamped agreement by paying a penalty which is fixed at 10 times the
value of the stamp duty.
2. While buying apartments
i. Difference between super built-up area, floor area,
and carpet area
The carpet area is the area of the apartment which is available for use and
does not include the walls of the apartment. The floor area, which is also
referred to as the plinth area or built-up area, includes the carpet area along
with the inner and outer walls. The super built-up area includes the plinth
area and the unit’s share of all the common areas in the apartment complex
including lifts, corridors, balconies, and other such facilities.
Developers tend to mislead you into believing that the area being sold to
you is the area available for your use, but what is being sold is the super
built-up area. Therefore, it is essential to check on the actual carpet area of
the apartment being sold to you.
ii. Unsanctioned floor
Many apartments have unsanctioned penthouses (apartment on the highest
floor). So check the sanction plan to see if the apartment being sold to you
is legitimate in this aspect.
iii. Deviation from the sanctioned plan
Apart from illegal penthouses, there are other types of deviations which will
increase the size of the apartment over and above the allowed 5% deviation
in the sanctioned plan. You can protect yourself with an indemnity clause in
your construction agreement stating that there are no deviations from the
sanctioned plan.

iv. Make sure that the builder undertakes to provide

you the Khata for the apartment after registration.
v. Hidden charges
Make sure you have the break-up for the service tax (ST), value-added tax
(VAT), deposits, maintenance charges, registration and stamp duty charges
etc., and the exact amounts for these components while signing the
agreement.
vi. Occupancy certificate
An OC is mandatory for all buildings in BBMP limits. Obtain a guarantee
 from the builder that he will furnish you an OC by a certain date after
completion of the project.

vii. Sharing agreement

If the apartment is a joint development, examine the sharing agreement
between the developer and the landowner. The sharing agreement shows
which apartments can be sold by the developer and which ones can be sold
by the landowner. A scrutiny of this document will ensure that the
apartment you are being sold is sold by the person who has the rights to sell
it. This is critical for ensuring a clear title.

viii.Warranty period
Obtain a warranty for a period of 12 months from the developer against
structural defects in the building. This clause is normally present in sale
deeds too.
ix. Pre-launch properties
Be wary of investing in pre-launch properties. Builders do it before they get
plan sanction approvals and the configuration of the property may change
after approval. Or approval itself may get delayed. Or the builder may
cancel the project and offer you an exchange in a different pre-launch
project.
3. While buying vacant sites
i. Always obtain a physical measurement of the site to
check if the site is of the same dimensions as that you
are paying for.
ii. For BDA sites
• Fake BDA sites: There are certain sites in layouts which have not been
allotted by the BDA. Though such sites may be physically valid, the
documents pertaining to the title are likely to be counterfeits. Check with
the BDA to find if the site in question is a valid BDA site.
• G category site: Check if the site is a G category site. These sites are
 allotted at the discretion of the chief minister. Writ petitions have been filed
against the allotment of some of these sites. If there is a case in the courts
regarding allotment of such a site, be wary of proceeding.

iii. Unauthorised layouts

Sometimes layouts are developed without proper approvals from the plan-
sanctioning authorities. These layouts may or may not be converted to non-
agricultural use. Some layouts may not be compliant with zonal use.
Purchase such sites only at your own risk. Do not believe the marketing
hype that the site is legal because betterment charges have been paid. Also
note that the BBMP is not authorised to sanction site layout plans.
iv. In gated communities, most developers sell the sites
without informing the buyers when the common areas
will be developed. So it is advisable to insist on a clause
in the agreement for the time-bound completion of these
common areas with an option to exit the agreement or
of a fine if they are not completed in the timeframe
agreed upon.
Other things to look for while buying property are:
4. In case of sale through power of attorney
The buyer must check if the power of attorney has been revoked at any point.
The buyer must also ensure that the power of attorney is provided by a person
who has a right to give the same. Before the final sale, it is advisable to meet
the original owners of the property to ensure that the power of attorney is
indeed valid.
5. While buying property from a minor
The minor in such a case can only be represented by a natural guardian.
Further, the natural guardian can only sell the property after taking
permission from the court.
6. While buying property owned by companies
A company can be represented by its authorised director but all company
properties can be sold only on the basis of a board resolution. Unless a
company deals with real estate property which it owns, the property cannot
be sold without a board resolution.
You should also carry out a Register of Companies (ROC) search to rule out
charges created created on the company; these will not show up in mortgage
documents but only show up in an ROC search. A charge means an interest
or right which a lender or creditor obtains in the property of the company by
way of security that the company will pay back the debt. Loans taken by the
company from a bank are reflected in the ROC search. So ask for an
inspection of the original documents, or obtain details through an ROC
search about the liabilities of the company.
7. While buying property owned by partnerships
If a property is owned by a partnership firm in the matter of a sale, the firm
should be represented by an authorised partner.
8. While buying property from a Hindu Undivided
Family
The Hindu Undivided Family (HUF) should be represented by the Kartha
(eldest living male member). Buyers should be cautious while buying HUF
property as the Kartha can sell the property only if the sale is due to a legal
necessity or if the proceeds from the sale are used for the benefit of the entire
family, e.g. repayment of loans, for education of the children, or for marriage
expenses, and not just because the Kartha wants to sell.
9. For Sellers
i. True market value
Sellers can usually discover the range of market values for their property by
looking at comparable listings in classifieds sections of newspapers, online
real estate portals etc. In case of apartments, it easier to determine the going
price by checking with recent sales, but it is harder to do so for vacant sites
and independent houses.
The guidance value for the property is usually not an indicator of market
value.
ii. Agreement holders
Sellers need to find out if the prospective buyer is genuine buyer. In many
cases, the middlemen pay an advance and hold on to the property without any
intention of buying it. They instead scout for prospective buyers to sell the
property at a higher rate and pocket the profit. When the second buyer finds
this out, it causes confusion. Sellers should check the antecedents of the
buyer to check if they are genuine buyers.
Precautions to be taken while buying
an under-construction apartment

Note: This chapter is based on the practical experience of a

buyer of an under-construction flat in Bengaluru within
BBMP limits. While it exposes dubious practices by some
apartment builders, it is by no means an implication that all
developers operate in this fashion. With this in mind, use
this chapter to be better prepared and avert scenarios such
as the one below.

1. The story behind under-construction apartments

After a considerable amount of searching, you have finally zeroed in on an
under-construction apartment which you want to buy. Your decision is based
on cost, location, level of development of the area, accessibility, quality,
reputation of the builder etc.
If you run into the following scenario, be wary.
The builder of your selected property sets the terms for payment: 20%
advance, 70% for slabs (for a typical G + 3 apartment), and 10% after sale
deed registration. After paying the advance (20%), you apply for a bank loan.
If your credit score is good, you get immediate loan approval, since in this
case, land records (i.e. sale deed, mother deeds, Khata, tax paid receipts etc.
for the land in question) are clean.
In general, a builder will not let you modify the terms and conditions of either
the Sale Agreement or Construction Agreement (or Agreement to Build). The
usual option is to buy the property he offers or look for a different flat. Since
prospective buyers have already gone through the tiresome process of
finalising/searching for a flat, they do not fight the builder on the terms, and
agree to everything that the builder says.
In some cases, the builder would have constructed all the slabs (or will
complete all slabs within 2 to 3 months) and will raise the Demand Note for
70% of the flat's cost as per the Agreement to Build. He will also pressurise
the bank to release the payment as per the agreement. So, in this manner, the
builder will get sometimes 90% of the flat cost into his kitty within three
months of Sale Agreement.
This is when the actual problem begins.
Construction of your flat will not be completed in terms of the brickwork,
painting, fittings, woodwork etc.
Further, note that the total cost = cost of your flat + lift + generator +
electricity meter + common areas + all promised amenities + Registration +
OC + Khata. The builder will only complete the brickwork etc. for your flat
and raise a Demand Note for the balance 10%.
After the release of this final 10% (you have totally paid 100% of the amount
by this time), the builder will ask you to register the Sale Deed without
completion of all other amenities (listed above) except your flat.
The builder will promise that he will complete all the common amenities
once for all after the flat's brickwork is complete. This usually takes
anywhere from 12 to 18 months.
After Sale Deed registration, the builder will ask you to move into the flat
without providing the OC. Once you finish your interior work and move into
your flat, you begin noticing all kinds of problems.
i. The electricity connection will be temporary: To obtain a permanent
connection, it might take more time. Without a permanent connection, you
will not be able to operate your grinder, mixer, fridge, washing machine etc.
ii. Other problems usually include peeling of paint, leaking taps, bad
finishing of tiles, and patches in the paintwork.
iii. The lift will usually not work continuously (it will be operated on a
‘need’ basis).
iv. Incomplete parking
v. Insufficient generator capacity
vi. Incomplete staircases
vii. Drainage problems
viii. Poor quality of construction
ix. On-going, noisy construction work
x. Workers using common areas resulting in undue need for extra
housekeeping work due to dust, construction material leftovers, spitting etc.
xi. Drainage problems (since the sewage treatment plant or STP will be
absent or incomplete)
xii. No clubhouse/ swimming pool and all other promised amenities
As per due process, the BBMP will issue the OC only if the building has been
constructed according to the sanctioned plan and meets all by-laws. The
BBMP can allow up to a maximum of 5% deviation (subject to certain
conditions). If the deviations are more than 5%, the BBMP will not issue the
OC.
Without the OC, you will not be able to obtain a Khata (the so-called ‘A’
Khata). Even if you pay your property tax and other taxes, you will not be
able to obtain your ‘A’ Khata (Khata certificate and Khata extract). Creating
an equitable mortgage with a bank if you need a loan on your property will
become difficult.
You may wonder why, when the bank has sanctioned the loan and legal
opinion is clear, you are unable to obtain the Khata. This is because banks
sanction loans based on land records only. Because the property in question is
under-construction property, the bank will not recognize any building
violations in such cases. Even if they know of violations, they will not raise
any objections because everything is legal as per the agreement and payment
schedule.
The bank usually releases 80% of the money just for slabs only as per the
payment schedule. Banks also understand that the OC and Khata can create
legal problems for them; even though the sanction letter may explicitly state
that there should not be any violations, that the builder should obtain an NOC
from all the concerned agencies, and that the ‘A’ Khata is required for
creating an equitable mortgage (from the legal opinion submitted to the
bank), some banks may ignore these guidelines because they need the
business.
The same bank will not accept your documents or sanction mortgage loan
since you do not possess the OC and the ‘A’ Khata. In some cases, the
builder may construct one or two floors (such as a penthouse) extra above the
topmost sanctioned floor. Such constructions are illegal, and hence, no OC
will be given to you.
When you check the BBMP’s website under ‘Know Your Tax Paid Details’,
you will still see the landowner's name against the property and the Khata
number. This is because the original Khata has not been bifurcated for the
individual flat owners. Again, this is because you have no OC.
The OC and Khata are trivial concerns for the builder because eventually, the
bank will hold the buyer responsible for repayment of the loan and not the
builder for building violations.
2. Why you must be extra careful while buying under-
construction property
i. Risk of the builder violating building by-laws
ii. The builder might construct illegal floors (penthouses etc.) because of
which the BBMP will not give you the OC.
iii. The BBMP has the authority to sanction/clear only up to 5% of
violations subject to some restrictions. Beyond this amount of deviation, you
have to depend only on the Akrama-Sakrama scheme (See Legal-Illegal
section) to regularise your property and obtain the OC.
iv. In the example above, nearly 90% of the payment is collected just
before the Sale Deed registration and the fulfilment of other terms and
conditions including the completion of amenities such as car parking.
v. Unlike buying an already constructed flat, here, if the quality of the
construction turns out to be not as good as promised before the purchase,
getting out is not easy, since you have already paid for the flat. Obtaining any
penalty from builders is cumbersome.
vi. You may have to shell out an additional sum to the bank as pre-EMI
interest.
vii. Note that the penalty for delay from the builder is a trivial amount. It is
around Rs. 5/sq. ft./month. If you are buying a 1000-sq. ft. flat, the penalty
works out to be Rs. 5000/- per month of delay. On the other hand, for
instance, you may pay around Rs. 50,000/- per month as pre-EMI interest
alone.
viii. In this example, if you paid paid 90% of the cost within a few months of
the sale agreement and need to wait for 12 to18 months before you get
possession of your flat, you will be at the mercy of the builder to get your flat
completed.
ix. In clauses for cancellation due to any reason, the refund may be around
80% of the total money paid, and the amount is refunded over a period of
three to six months.
x. Sometimes, your flat might have less carpet area than what is
committed.
xi. The builders may not have NOCs or valid NOCs from the KSPCB,
BESCOM, BWSSB, BDA, BBMP etc. and yet construction might have
commenced.
xii. Sometimes the total of the undivided shares of land of the flat owners
will not tally with the total land on which the apartment is being built.
xiii. First-time builders may mess up the whole project, and finally, it is the
purchasers who will be affected.
3. Advice to buyers
i. Ensure that the builder commits to deliver the OC and ‘A’ Khata in
writing, and include this commitment in the Sale Agreement/Sale Deed.
ii. Make the payment schedule reflect the stages for the actual completion
of your flat and also the handing over of all the legal documents such as the
OC and ‘A’ Khata.
iii. Make the bank release payment only after completion of each stage.
iv. Instruct the bank to release payment only after receiving written
approval from you (the builder generally sends a demand note to banker for
payment release and pressurises the bank for release of payment.)
v. Form an association along with other residents so that the builder can be
pressed into delivering as per schedule and commitments.
vi. Be skeptical of builders who say that your flat will appreciate within a
year or so and force you to pay more. These are only claims, and are not
automatically true for any property anywhere. If you take into account the
pre-EMI interest amount you have to pay to the bank for your loan, the extent
of property value appreciation, if any, may get neutralised by your added
costs.
vii. In actuality, since the apartment construction business is growing and in
full swing in and around Bengaluru, availability is also increasing day-by-
day. So any new buyer of an apartment will look for newer flats constructed
using the latest technology and safety methods. So finding a buyer for an old
flat might be an issue.
viii. Check that the builder has all the necessary clearances such as the
sanctioned plan, commencement certificate, NOCs from BWSSB and
BESCOM. For high-rise apartments (more than 15 m in height) safety
clearance certificate from the Fire Department is necessary and in some cases
airport NOCs and special height permissions are needed.
ix. After completion of the project, ensure that the builder hands over the
whole set of documents to the residents’ association.
EYE ON THE MONEY
Assignment by agreement holders

1. What is assignment by agreement holders?

In essence this is reselling of agreements or contracts one buyer has signed
with a builder to another buyer.
Real estate projects need high initial investment; to raise money, the builders
often get into agreements with investors for a block of apartments. The
investors pay only a part of the cost price before the project is launched.
This is not a registered agreement and the title will rest with the builder.
When the project is started and a part of the project is completed, these
individuals (investors) have the right to assign the property or transfer the
contract to a new buyer and make a profit on it.
i. Investors
When the project is announced publicly and started, these investors dictate
the price for the blocks of apartments that they have already paid for.
Usually, the investors themselves are not directly involved in the sale of the
apartments; however, they control the price at which these apartments are
sold at. Licensed money lenders also invest in a block of flats and show it
as a loan given to the builder; such a block of flats is shown as collateral for
the loan.
ii. Individual agreement holders
While investors invest in blocks of flats, individuals can invest in individual
apartments. They also enter into unregistered agreements with the
developers. These individuals then have the right to assign the apartment to
a new buyer. If the agreement holder has paid up the full amount for the
apartment, then the entire profit from the sale goes to him, while the builder
gets a transfer fee stipulated in the agreement. If not, the individual will get
only a part of the profit. The builder will register the apartment to the buyer
directly after the buyer pays the agreement holder.
2. Why do builders offer such contract reselling?
This is one way of raising funds for the development of a property. The initial
stages in any real estate project are highly capital-intensive. Since most
prospective apartment buyers are unwilling to invest large sums at this early
stage, the builders use these types of contracts to raise funds.
3. Legality
Technically all the three parties involved in the transactions, i.e. the
developer, agreement holder and buyer should be brought on record through
a registered tripartite agreement. However, the agreement between the
developer and the original investor/agreement holder is unregistered to save
on registration charges and to avoid short-term capital gains tax (CGT),
especially if there is a black money component to the transaction. The actual
buyer then directly enters into a registered sale deed with the developer. The
agreement holder gets the profits and the developer only receives the transfer
fee that has been previously agreed upon.
Note: If are buying from an agreement holder who has paid 100% of the
payments due to the builder, and the builder will register the sale deed with
you directly since are buying, it is better to ask your lawyer to word the sale
deed that shows this consideration, and also make the original investor a
witness to the deed.
4. Taxation
For investors, the eventual sale of such properties is considered to be a
business transaction and is taxed as business income. The rate of tax for
individuals is 10%, 20% and 30%, depending on which tax slab is applicable
to the individual. For companies or partnerships, the profits are taxed at a flat
rate of 30%. Investors are attracted to agreement reselling because selling
property by other means attracts CGT on which they cannot claim expenses,
while such expenses can be claimed for business income.
Individual resellers who transfer the property through a tripartite agreement
have to pay short-term CGT on the transaction according to their applicable
tax slab.
Capital Gains Tax

When you are planning to buy a property for investment or your own use, or
whether you re-investing proceeds of an earlier sale into a new property, or
even construction of a home on a different plot of land, you will have already
heard about capital gains tax (CGT). This chapter will help you understand
the basics of what this tax is and how it will influence your decisions.
Do note that this chapter is not a substitute for a detailed conversation with an
auditor. However, buyers and investors will get acquainted with the concepts
in the easy-to-read material here.
1. What is CGT with respect to real estate?
The profits or gains arising from the transfer of a house, apartment, or a
vacant site (which is termed a capital asset) made in the previous financial
year is called capital gains, and the tax on this gain is called CGT.
i. Types of CGT
There are two types of Capital Gains depending on the length of time for
which the property being transferred was held before the transfer. The
period of holding is computed from the date of acquisition to the date
immediately preceding its transfer.
Properties that have been held for 36 months or less are classified as ‘short-
term capital assets’, and capital assets that have been held for more than 36
months are called ‘long-term capital assets’.
The profits made from the transfer of such properties are called Short Term
Capital Gains (STCG) and Long Term Capital Gains (LTCG), respectively.
ii. Computing Capital Gains
• Short Term Capital Gains:
STCG = Full value of consideration – (Cost of acquisition or purchase price
+ cost of improvement + cost of transfer)
 The STCG value obtained using the above formula is taken as income
under Capital Gains for that financial year; this amount is taxed
accordingly, considering the cost inflation index (CII).

• Long Term Capital Gains:

LTCG = Full value of the property – (indexed cost of acquisition + indexed
cost of improvement + cost of transfer)
Here,
Indexed cost of acquisition = Cost of acquisition × CII of year of
transfer/CII of year of acquisition
Indexed cost of improvement = Cost of improvement × CII of year of
transfer/ClI of year of improvement
iii. Cost Inflation Index
The increase in the price of a property from year to year is not only because
of market demand but also because inflation increases from year to year. In
order to account for this inflation component in the profit arising from the
sale of a long-term asset, the government introduced the concept of
indexing the cost. The government has issued CIIs for every financial year
starting from 1981–82. The CII for 2013–14 is 939.
Financial Year Cost Inflation Index
1981–82 100

1982–83 109

1983–84 116

1984–85 125

1985–86 133

1986–87 140

1987–88 150
1988–89 161

1989–90 172

1990–91 182

1991–92 199

1992–93 223

1993–94 244

1994–95 259

1995–96 281

1996–97 305

1997–98 331

1998–99 351

1999–2000 389

2000–01 406

2001–02 426

2002–03 447

2003–04 463

2004–05 480

2005–06 497

2006–07 519
2007–08 551

2008–09 582

2009–10 632

2010–11 711

2011–12 785

2012–13 939
The earliest available index is for properties purchased after 1 April 1981. In
the case of properties acquired prior to this date, the seller has the option to
choose either the price of the property as stated in the sale deed or the fair
market value of the property as on 1 st April 1981, as the cost of acquisition.
The fair market value of the property is calculated by Income-Tax-approved
valuers based on the information available in the sub-registrar’s office. This
cost of acquisition and the CII of 1981 are used to calculate the indexed cost
of acquisition.
The LTCG computed as above is taken as income under the head of Capital
Gains for the purposes of determining the total income for the financial year
during which the transfer took place, and the tax on LTCG is fixed at 20%.
Example
X is the owner of house which was purchased on 1 September 2000 for Rs.
1,00,000. X paid a stamp duty of Rs. 10,000 and registration fees of Rs. 1000.
So the total cost of acquisition is Rs. 1,11,000.
X sells this property on 6 November 2013 for Rs. 20,00,000.
2. Exemptions from LTCG tax
i. For homes and apartments
When a house or an apartment is sold and the money from the sale is used
to buy or build a new house or apartment, the seller can claim full
exemption from LTCG tax if all of the following conditions are met:
• The original house must be held by the seller for more than three
years.

• The seller has either:

a. Purchased another house a year before the date of sale of the house
or within two years after the date of sale
b. Built a house within three years of the date of sale
• If the capital gains arising from the sale are not fully utilised for
buying/building a new house before the due date to file IT returns, then
the unutilised capital gain should be deposited by the seller in a Capital
Gains scheme in any of the designated banks.
• The cost of the new house or apartment is equal to or exceeds the
amount of capital gain.
If the cost of the new house is less than the amount of capital gains, then
the difference between the two is taxed as the LTCG of the previous
year in which the original house/apartment was sold.
Example
If the LTCG on the sale of a house or apartment is Rs. 17,43,278, and if the
cost of the buying/constructing the new house/apartment is less than or equal
to the LTCG and fulfils all the criteria for full exemption, then LTCG tax on
the sale of house/apartment is nil.
If the cost of the buying/constructing is less than the LTCG, for e. g. Rs.
7,43,278, then we have:
New LTCG = Old LTCG – Cost of new house = Rs. 17,43,278 – Rs.
7,43,278 = Rs. 10,00,000
This value of Rs. 10,00,000 is taxed as the LTCG at 20%.

ii. For vacant sites:

If an individual or HUF sell a vacant site, they can claim full exemption
from the LTCG tax if they invest the net consideration (Net Consideration =
Full value of the site – Cost of Transfer) in the purchase of a house or
apartment fulfilling all of the following conditions:
• The original site must be held by the seller for more than three years.

• The seller has either:

a. Purchased the new house a year before the date of sale of the
property or within two years after the date of sale
b. Built a house within three years of the date of sale.
• The amount of net consideration which is not utilised for
buying/building a new house/apartment before the due date to file income
returns should be deposited in a Capital Gains scheme in any of the
authorised banks.
• The cost of purchase or construction of the new house is not less than
the net consideration of the original site.

• On the date of sale of the original site, the seller:

a. Does not own more than one house other than the new house
b. Does not purchase any house/apartment within one year or construct
any house/apartment within three years after that date other than the
new asset

Example
X has a vacant site which he had purchased on 26 July 2001, for Rs. 7,69,370
including stamp and registration charges. X sells the same site for Rs.
73,20,000 in 2012.

If all the money from the sale proceeds is reinvested in building/buying a new
house/apartment meeting all the conditions mentioned above, the LTCG tax
is nil. But if a part of the sale proceeds is reinvested, for e.g. if only Rs.
35,00,000 is reinvested, then we have:

Another way to claim deductions on Long Term Capital is by investing the

LTCG in bonds (redeemable after 3 years) issued by the National Highway
Authority of India (NHAI), National Bank for Agricultural and Rural
Development (NABARD), Rural Electrification Corporation Limited
(RECL), National Housing Bank, or Small Industries Development Bank of
India. A maximum of Rs. 50 lakhs can be invested in these bonds.
3. Capital Gains account scheme
If the capital gain arising from the sale is not fully utilised for
buying/building a new house before the due date to file IT returns, then the
unutilised capital gain should be deposited by the seller in a Capital Gains
scheme in any of the designated banks to avoid the LTCG being taxed.
Capital Gains Accrued from the sale of a property can deposited and easily
withdrawn for a period of 3 years from the date of sale of the property. The
account can either be a Fixed Deposit or a Savings Bank account, and the
amount is subject to the normal bank rate of interest. The proof of the deposit
should be filed along with the tax returns for the financial year. If at the end
of three years the money is still not utilised, then the assessee has to pay
LTCG tax for that financial year on the unutilised money from the sale.

4. Deadlines for CGT accrual

The Capital Gains accrued from the sale of either a house or a vacant site has
to utilised before the due date to file returns for that year (for e.g. by 31 July
2014, for the financial year 2013–2014).
In case the capital gain has not been utilised, it can be deposited in a Capital
Gains scheme in one of the designated banks before the deadline. If not, the
unutilised portion will be taxed as the Capital Gains for that year.
Taxes: VAT and ST for buying
property

In the light of the recent real-estate boom in the country, there has been
confusion regarding whether builders need to charge sales tax (also known as
VAT) and service tax (ST) for under-construction property/sale agreements
(typically apartments) in addition to the usual stamp duties and registration
fees.
However, after at least two major Supreme Court verdicts and clarifications
from the finance ministry, matters as regards the applicability of ST were
finally settled in law through a Notification in 2012 and the Finance Act in
2013.
1. VAT and ST considerations as per law
This confusion originally arose because the sale of an already constructed flat
or home normally only attracted only stamp duties and registrations apart
from capital gains (income) tax which is applicable to the seller. However, in
the case of most residential apartment and home/villa projects, since builders
receive payments from buyers right from the start of the project and
throughout, i.e. before completing construction, both the state and central
governments and the Supreme Court have considered the nature of this
business activity as different from the direct sale of an already-built property
in several litigations.
The Supreme Court has decreed that sales tax/VAT (state jurisdiction) is
applicable on the construction cost. Independently, the central government
has also deemed the composite business of building and handing over an
apartment for a price as a service being provided by the property developer to
the buyer, thereby attracting ST as well.
So the matter of whether VAT and ST apply to under-construction flats built
by developers for owners or buyers has finally been settled as per law.
2. Buying an under-construction apartment in
Bengaluru
If you are buying an under-construction apartment in Bengaluru, note the
following:
i. The land sale cost (the undivided share of land is sold along with the flat
to complete the sale for any apartment) is excluded from VAT and ST.
ii. VAT as per the Karnataka government taxation rules is applicable as
regards the construction cost of the property.
iii. ST is applicable as regards the cost of the property, after considering a
certain percentage of abatement (or reduction) towards the cost of
goods/immoveable property.
These three points are of interest to buyers because the final costs of buying a
home include the taxes involved, since the builder passes on the taxes to the
buyer as part of the sale.
The table below shows the VAT and ST applicability and percentages. Note
that the percentage may change year to year depending on the state (VAT)
and central (ST) taxation policy.

ST: Buying a fully constructed flat

VAT: Nil
Property transaction: Nil

ST: Buying a flat being constructed or to be constructed (i.e. construction

not complete) with less than 2,000 sq. ft. of super built-up area or costing
less than Rs. 1 crore
VAT: 5% of construction cost
Property transaction: 3.09% (effective 1 March 2013)

ST: Buying a flat being constructed or to be constructed (i.e. construction

not complete) with more than 2,000 sq. ft. of super built-up area or costing
more than Rs. 1 crore
VAT: 5% of construction cost
Property transaction: 3.71% (effective 1 March 2013)

ST: Buying an already-constructed standalone home on a plot/site

VAT: Nil
Property transaction: Nil

ST: Construction of a single residential unit, designed for use by a single

family
VAT: Nil
Property transaction: Nil
Property taxes, betterment charges and
more

Once you have purchased your dream property, it is time to pay your taxes on
it. The BBMP and the BDA are the tax-collecting authorities for all
properties under their jurisdiction. For properties falling under the
jurisdiction of the BMRDA, the village panchayat within whose limits the
property lies is the tax collecting authority. Let us look at how property tax is
assessed for properties falling under the different tax collecting authorities.
1. Property taxes in BBMP areas
For all properties falling under the jurisdiction of the BBMP, the property tax
scheme applicable is the Unit Area Value (UAV) system. This system which
was made mandatory in 2009 is based on the expected returns from the
property depending on the location as well as the usage of the property. The
block period of the tax scheme is 3 years, and it was to end last year (2012–
13), but has been extended to another year (2013–14).
2. Unit Area Value
All areas falling under the jurisdiction of the BBMP are classified into six
value zones from A to F based on the guidance value. Further, residential
properties are classified into five categories:
i. RCC/Madras roof with the entire flooring consisting of red oxide or
cement
ii. RCC/Madras roof and any other flooring
iii. Tiles or any type of sheets for roofing
iv. Huts, slums, and government housing for the poor
v. Vacant or excess land
The UAV of the residential property is based on the zone it lies in, the
building category it falls under, and also whether it is rented out or not.
3. Steps for calculating property tax for residential
properties
i. Built-up area × UAV × 10 months = T1
ii. T1 – Applicable depreciation = T2 (Taxable annual value)
iii. T2 × 20% = T3 (Property tax)
iv. T3 × 24% = T4 (Cess)
v. T3 + T4 = T5 (Gross property payable)
vi. T5 × 5% = T6 (Rebate for early payment)
vii. T5 – T6 = Net property tax payable
4. What is built-up area?
Built-up area is defined as the total area covered by buildings or high-rise
buildings above the plinth level. This includes all covered area such as the
basement, mezzanine flooring, balcony, garage area, and the constructed
boundary of the swimming pool. It does not include the following:
i. Courtyard at the ground level, garden, rocky areas, well and well
structure, plants, nursery platform around trees, overhead water tank,
fountain, bench with open top etc.
ii. Drainage, culverts, conduits, catch-pit, gully pit, and chamber gutters
iii. Compound or boundary wall, chejja, uncovered staircase, watchman
booth/pump house not exceeding 3 sq. m, and a sump tank
For apartments, the area mentioned in the schedule of the sale deed will be
considered instead of the carpet area. While a covered car park area is
charged at 50% of the rate prescribed for the zone and status, i.e. tenanted or
owner-occupied, open-space parking areas including the veranda or the
portico are excluded from the built-up area.
5. Property taxes in the 110 newly added villages
In 2007, 110 villages were added to the Bangalore Mahanagara Palike (BMP)
to form the BBMP. The houses in these newly added villages are taxed under
a special category whereby they have to pay a lump sum tax depending on
their size. The lump sum tax is applicable only for ordinary village houses
and not for houses, villas, and apartments which have been constructed in
layouts approved by LPAs or developed by the BDA, KHB or in any private
layout.
For houses and apartments which have come up in such layouts, property tax
is computed on the basis of the rate prescribed for the zone under which the
property falls.
6. Paying BBMP property taxes online
Property taxes can be paid online at the BBMP website www.bbmp.gov.in.
The site has zonal classifications as well as a property tax calculator to help
you calculate your property tax.
7. BDA taxes
The BDA collects property taxes for properties falling under its jurisdiction.
The tax scheme is the same as that of the BBMP with the properties in
question considered to be falling under the BBMP’s F zone, which is the
lowest taxed zone in the BBMP’s zonal classification. Once the area is taken
over by the BBMP, then the BBMP becomes the tax collecting authority.
8. Panchayat taxes
Panchayat taxes are governed by the Karnataka Panchayat Raj Act of 1993,
which states that every gram panchayat can levy tax upon buildings and lands
within the panchayat limits which are not subject to agricultural assessment.
The maximum rate a panchayat can charge for vacant land is one rupee per
annum for every 100 sq. m. For buildings, it is 10% of the annual letting
value. The annual letting value is defined as the annual rent which might be
reasonably expected year to year from any building or land exclusive of
furniture or machinery. The actual rate of tax levied is left to the discretion of
each panchayat.
9. Betterment charges
When new areas are added to the jurisdiction of civic agencies such as the
BBMP or the BDA, the civic agency in question provides services such as
asphalting and widening of roads, construction of grade separators, laying
storm water drains, underground drainage systems, and street lights. As a
consequence of these improvements, there is an increase in the value of
properties in these newly added areas. Betterment charges or improvement
charges are the charges collected by the civic agency for this value addition.
Betterment charges are one-time amounts, unlike property taxes which are
annual.
The BDA Act of 1976 states that ‘the increase in value shall be the amount
by which the value of the land, on the completion of the execution of the
scheme, estimated as if the land were clear of buildings, exceeds the value of
the land prior to the execution of the scheme estimated in like manner, and
the betterment tax shall be one-third of such increase in value’.
Before 2007, in the region around the 110 villages (peripheral areas) which
were merged into the original BMP, betterment charges were collected by the
city municipal council (CMC) authorities only for sites which came under the
purview of the gram panchayat. After 2007, these areas were amalgamated
into Bengaluru to create the BBMP.
Until 2013, no betterment charges had been collected from property owners
in these areas, according to the BBMP. A proposal was pending with the state
government at the time this guidebook went to press.
Bank loans for buying property

Owning your home is the dream of many, and the ever-

burgeoning cost of real estate should not be a deterrent to
fulfilling this dream. There are many banks and housing
finance institutions that cater to the buyer’s needs, offering
a plethora of products and services that make owning a
home convenient. Availing such a loan is a smart choice
since it also ensures income tax benefits.

This chapter is a quick primer to the essentials of documentation that banks

require from home loan borrowers, the scrutiny process and tax benefits
accruing from home loans. However, it is not meant to be a detailed analysis
of how to choose the best home loan, given that market conditions are highly
dynamic.
You can avail a loan to buy a house or a flat as well as to renovate or extend
an existing property either from banks or housing finance companies. It is
important to select a bank after weighing and negotiating various factors,
such as rate of interest, down payment limit, fees and other applicable
charges.
1. Important points to consider for bank loans:
i. Most banks have a fairly extensive list of pre-approved projects in every
city. Documentation, verification and disbursement become much less
cumbersome if you approach banks that have approved the project where you
are planning to buy your property.
ii. Interest rates on home loans vary with every bank. At the time this
guide went into publication in early 2014, the State Bank of India offered the
lowest interest rate at 10.15%. The base rate is the minimum interest rate
below which a bank cannot lend; if the difference between the base rate and
the actual lending rate is high, you can negotiate with the bank on the lending
rate. Various factors, such as the cost of deposit, administrative cost, the
bank’s profitability in the previous financial year etc. are weighed to calculate
the base rate.
iii. When you apply for a bank loan, you need a guarantor. A guarantor is a
person who provides surety to the bank on your behalf; this is the person
responsible for the loan if you are unable to repay the same. The guarantor
must reside in the same city as the loan applicant.

2. What are the types of home loans available?

This is a consolidated list of the various types of home loans available today.
Not all banks or financial institutions offer all these types of loans. Before
availing any loan, ensure that you read all the terms and conditions
documents carefully. Yes, this means all the fine print, so that you are not in
for surprises later!

Types Description

Home
Apply for this loan to buy a new home, whether the property is
Purchase
under construction or a resale.
Loan

Home
Improvement Apply when you wish to renovate your property.
Loan

Home
Construction Apply when you need to construct a new home on a plot.
Loan

Home
Extension Apply when you need to renovate your home.
Loan

Home Apply when you already have one home loan and want to avail
Conversion another home loan to purchase a new property. The bank clubs
Loan the existing loan with the new loan to expedite the new buy.

Land
Apply when you desire to purchase land for construction of a
Purchase
house.
Loan

Composite This is a land purchase cum construction loan. Apply when

Loan you wish to purchase land and build a house.

Apply when you want to sell the existing property (but have
not yet found a buyer) to buy a new property. This loan helps
Bridge Loan
finance the new home till the sale of the existing home is
complete.

Balance
Apply when you wish to switch your loan from one bank to
Transfer
another.
Loan

Stamp Duty Apply when you wish to raise money to pay stamp duty of the
Loan property. Not all banks give this loan.

Loans to This loan is extended only to NRIs who wish to buy a property
NRI in India.

Reverse
This loan is primarily for senior citizens owning a house but
Mortgage
lacking adequate finance.
Loan

3. What documents need to be submitted to the bank

for loan approval?
The documents that you submit will be verified by the legal team of the bank.
The verifier scans all the documents to establish that the information given is
authentic and legal, that the title of the property you intend to buy is without
any encumbrance and that you have the ability and credit worthiness to pay
off the loan on time.
QUICK TIP: Although banks do a thorough job of validating the title and
other legal documents pertaining to the property, it is always a good practice
to get this legal set verified by an independent lawyer representing you
directly.
To apply for a bank loan, you must submit the following documents along
with the duly filled in application form:
i. Six months’ salary account bank statement
ii. Salary slips for last three months
iii. Copy of last two years’ Form 16 and IT returns (For business
applicants, last three years IT returns and Form 16 must be submitted)
iv. One passport size photograph of the applicant and the guarantor
v. Copy of employee ID card
vi. Copy of PAN card
vii. Address proof from the Human Resources department (HR) of your
employer on the company’s letter head
viii. Employment proof
ix. Property documents
• Sale agreement

• Construction agreement

• Latest encumbrance certificate

• Tax paid receipt

• Latest khata certificate

• NOC from builder

• Cost break-up letter

• Copy of the mother-deed

 • Approvals from the local authorities and planning authority
x. Guarantor’s documents

• ID Proof

• Address proof

• Salary slip for the last month

• IT returns and Form 16 for the previous year

4. What documents are required by an NRI for availing

a home loan?
To avail a home loan for buying property as an NRI, you will need the
following documents:
i. 1 passport-size latest photograph of each applicant (applicant & co-
applicant) with the respective signature across the photograph
ii. Valid passport copies of all the applicants
iii. Valid visa copies of all the applicants
iv. Cheque/Draft in INR for bank fees (as per the applicable rate) with the
date in dd/mm/yyyy format
v. GPA document signed by all the applicants
vi. Authority letter duly signed by all the applicants
vii. Details of the organization(s) where the applicant(s) are employed
viii. Copy of current overseas residential verification proof of all the loan
applicants (driving license or bank statement showing overseas address or
latest insurance premium receipt or utility bill)
ix. Copy of PAN Card for the 1st applicant OR Form 60
x. Self-attested address proof of all applicants
xi. Copy of current appointment letter OR Copy of salary certificate clearly
mentioning the date of joining, current salary earned and designation held in
the company
xii. Copy of previous appointment letters
xiii. Salary slips: last 3 months for fixed salary and last 4 months for variable
salary
xiv. Last 6 months’ bank statements clearly mentioning salary credits in the
account
xv. Financial details for self-employed individuals:

• Copy of incorporation of business

• Copy of income proof

a. Middle East: Last 2 years’ audited/CA-certified profit and loss
(P&L) accounts
b. US & Canada: Last 2 years’ P&L accounts
compiled/reviewed/audited by a certified public accountant (CPA)
c. Others: Last 2 years’ CA or equivalent certified/audited P&L
accounts
• Partnership deed (in case of a partnership firm)

• The memorandum of association and articles of association of the

company (in case of a private ltd. company)
• Last 6 months’ bank statements in the company’s name

• Last 6 months’ bank statements in individual’s name

• Business profile and office address proof

xvi. Guarantor’s documents
• Passport and visa copies of the NRI Guarantor

• Current address proof of the NRI Guarantor (driving license or bank

 statement showing overseas address or latest insurance premium receipt
or utility bill)

• Latest income documents

5. What are the tax benefits of a property loan?

As in most countries, in India, property loans come with tax benefits for the
consumer. As per the Income Tax Act, you can get tax exemption:
i. On the stamp duty and the registration charges paid under section 80C
ii. Of Rs. 1 lakh on the principal amount under section 80C (you cannot
avail deductions for under-construction property or if the property is sold
before 5 years from the time of possession)
iii. Of Rs. 1.5 lakhs on the interest component under section 24
iv. An additional deduction of Rs. 1 lakh is allowed to be deducted for the
payment of interest on home loans under section 80EE. This deduction is
allowed provided that the total value of the loan is not more than Rs. 25 lakhs
and the total value of the house is not more than Rs. 40 lakhs and that the
loan is a fresh loan taken during the financial year 2013–14. This deduction
would be applicable over and above the Rs. 1.5 lakhs deduction under section
24.
Joint owners of a property can individually claim IT deduction on the
principal and the interest component.
To avail the tax benefit, you must submit the interest certificate from the
bank to the income tax department while filing your tax returns. The
interest certificate is a document given by the banks detailing the interest
component and the principal component that is paid in the current
financial year.
6. How can I transfer a home loan to another bank?
You can transfer your existing bank loan to another bank that provides more
competitive terms to you—this is called refinancing. Project pre-approval is
not a constraint in this case. The loan sanction would depend entirely on your
credibility, your credit score and the status of the title of the property.
To transfer your home loan to another bank you have to submit the following
documents along with the application form to the new bank:
i. Copy of your PAN card
ii. Address proof
iii. Salary slips for last 3 months
iv. Form 16 for last 2 years
v. 6 months’ bank statement
vi. Copy of the employee ID from your place of employment
vii. Your curriculum vitae
viii. Existing bank loan account statement
ix. Outstanding loan letter from the current home loan provider
x. List of documents held with the existing home loan provider
xi. Loan statement of any other loans availed by you
xii. Copy of the sales deed
xiii. Copy of all the plans and other legal details that you received from the
seller
xiv. Encumbrance certificate
xv. 2 passport size photographs
After you submit all the documents, the new bank initiates a verification
process. This process entails the verification of all your documents once
again by the bank’s legal team. The bank also validates the value of your
property and only then is the loan sanctioned. This process could take a
minimum of 15 days.
[Note: Some banks would require a guarantor even for loan transfer. In
that case, the guarantor must submit the documents listed in the previous
sections.]
7. What is the process of foreclosure or pre-payment on
a home loan?
As per a circular from RBI, banks cannot levy charges if you wish to pay off
and close your loan earlier than the loan period.
If you choose to make a part payment or close your loan, you will need to
visit the bank and submit the following:
i. An application for pre-payment to the bank
ii. A 6-month bank statement that reflects the source of funds for the
closure
iii. Cheque for the outstanding amount.
8. What is the difference between floating rate home
loans and fixed rate home loans?
Consulting a financial advisor is a good idea before choosing between a fixed
rate of interest and a floating rate of interest to analyse the factors that would
affect you, such as the economic scenario, long-term trends and your risk-
taking ability.

Type of Interest: Fixed Rate

Description: This rate remains stable through economic fluctuation. The
tenure of the fixed rate loan could be fixed for the entire tenure or for a part
of the tenure of the loan.
If a bank offers a loan which is fixed only for a certain period of the tenure
of the loan, the Reserve Bank of India (RBI) recommends that you elicit
information from the bank whether the rates may be raised after the period.
This is called a reset clause. You may try to negotiate a lock-in that should
include the rate that you have agreed upon initially and the period for the
lock-in.
When you opt for fixed rate of interest, you choose stability in terms of cash
outflow. The interest rate needs to be low enough to be attractive for you to
enter into a long-term loan contract. It is usually a smarter choice to go for
fixed rates if the economic scenario indicates a rise in the interest rates in the
future.
Type of Interest: Fixed Rate
Description: Floating Rate In loans with floating rates, the interest charged
varies with economic fluctuations. The equated monthly installment (EMI)
could increase or decrease due to market fluctuations. Home loans with a
floating rate are intrinsically linked to the base rate and the floating element.
In the case of an increase in the interest rates, some banks may agree to
increase the loan tenure to ensure that the EMI remains unchanged.

9. Special home loans for women borrowers

Women home buyers can now take advantage of lower rates of interest from
a few banks and financial institutions, such as SBI, Tata Capital etc.
To avail such a loan, the woman should either be the sole applicant or the
first co-applicant and the property should be in her name.
10. Which bank should I choose for my home loan?
Consider the following points before choosing a bank for your home loan
needs:
i. The ease of the documentation process: Less the paper work the
better it is for you. It is a herculean task to get all the required papers in order
and fill in the details in the multiple pages of the application form for the loan
sanction. Some banks may take just 10 days while some could take a month.
ii. Loan share on property value: Consider the percentage of the
property value that a bank will fund. For example, some banks lend up to
85% of the property value while other only fund up to 70%.
iii. The total asset value funded by the bank, e.g. whether the bank would
consider the charges towards registration and stamp duty, charges towards
club membership, and/or charges owed to the OA.
iv. Customer service: Consider whether the bank has an archaic way of
dealing with customers or if the service is profession and swift.
v. Customer feedback and ratings: Today, online sites are available for
the comparison of customer satisfaction in all service sectors via reviews.
Bank services are no exception.
vi. The bank’s financial performance: Check the balance sheet of the
bank to understand its performance.
vii. The age of the bank: Consider how long the bank has been in the
business.
OTHER ASPECTS
ABC of gift deeds

If you are buying a property that has been acquired by its

current owner through a gift deed, it will help to understand
what gift deeds are and how they result in property
ownership being transferred. Use this chapter to understand
the basics.

We usually hear about gifts being presented on occasions like marriages,

birthdays, anniversaries etc. Such gifts are typically material gifts which can
be delivered immediately. However, one may also choose to gift immoveable
property, which has its own set of rules, described below. This quick guide
explains gift deeds: what they are, what the law says about them and how you
ensure their validity.
1. What according to the law is a ‘gift’?
According to the Transfer of Property Act, 1885, Section 122 defines a gift as
follows: ‘A gift is the transfer of certain existing moveable or immoveable
property made voluntarily and without any consideration by one person
called donor (one who gives the gift), to another called the donee and
accepted by or on behalf of donee (one who receives the gift). Such
acceptance can be made during the lifetime of the donor and while he/she is
still capable of giving. If the donee dies before acceptance, the gift is void.’
The above definition makes it clear that the gift should be made voluntarily
without any force or coercion imposed by the donee or any other person. The
said property should be existent, i.e. you cannot gift the dividend that would
accrue on your shares, since they do not exist yet. Both the donor and donee
should be alive at the time of the gift. For example, transfer of a house to an
unborn child is not valid.
2. How to ensure that the ‘gift’ is valid?
Whenever a gift involves an immoveable property, it should always be
transferred via a ‘registered deed’. That is, the document transferring the
property as a gift should be registered with the registrar’s office, similar to
buying and selling of properties. By registering the gift deed, the transfer
becomes legal. The process of registering the deed has to be carried out in the
appropriate registrar’s office wherever the property is situated.
If the gift deed is not registered, then no transfer of the property is considered
to have occurred, and the gift deed does not hold any value. Irrespective of
the value of the property, the gift deed needs to be registered for being legal
and valid. Moreover, the gift deed should be attested by two witnesses who
have seen the donor signing the document. It is the responsibility of the donor
to register the deed with the registrar.
3. What details should the gift deed include?
The gift deed should essentially mention the details of the property that is
being gifted; that the donor is voluntarily and willingly gifting the said
property; and that this is being done gratuitously without taking anything in
return from the donee whatsoever. The personal details of the donee should
also be mentioned.
While a lawyer does not need to be present while the deed is being signed, it
is advisable to use legal advice. Alternatively, one can contact the concerned
Sub-registrar’s office for any clarifications about the procedures involved in
creating a gift deed and other related details. The deed needs to be stamped
with the appropriate non-judicial stamp, the value of which depends upon the
value of the property.
4. When is the ‘gift’ considered invalid?
If the donor dies before registering the gift deed, the gift is not considered
valid. The donee also has to accept the gift during the lifetime of the donor;
otherwise, it is invalid. There is no prescribed method of accepting the gift,
i.e. acceptance can be expressed or implied. For example, the donee may start
residing in the property or take possession of the property. The donee’s name
being entered in the mutation records also amounts to acceptance of the gift.
If any of the conditions mentioned above – the donor has to transfer the
property willingly and gratuitously; that the donee accepts the gift during the
lifetime of the donor; and that the gift deed is registered – are not met, the gift
deed in question can be contested.
5. Can a gift deed be revoked?
A gift deed cannot be revoked, except if it was signed under coercion or fraud
and this is proved in a court of law.
A standard format for a gift deed is given below. This needs to be filled
out with the relevant and accurate details and will be valid after including
non-judicial stamps on the same.
GIFT DEED
This Deed of Gift is executed today i.e. .............. day of .................. 2014 by
Smt/Shri .......................... aged around ....... years, residing at
...................................................(herein after called the ‘Donor’) in favour of
Smt/Shri ............................ aged around .................... residing at
...............................(hereinafter called the donee).
Whereas, the term Donor and Donee unless repugnant to the context shall
mean and include their representatives heirs, successors, executors,
administrators, trustees, legal representatives and assigns
1. Whereas the donor is absolute and sole owner of House/Property no.
......................., at .................., the said property is surrounded by
....................... on the north side ............. on the east side ................................
on the west and ....................... towards the south. More specifically
prescribed in the schedule herein attached, hereinafter referred as scheduled
property.
2. Whereas the donor is the absolute owner of the said property and is in
possession of the said property and has been paying all the property taxes.
3. Whereas the Donee is related to the Donor as ........................

4. Whereas the Donor desires to grant the said scheduled property to the
Donee as gift in consideration of natural love and affection subject to the
condition herein after mentioned.
NOW THIS DEED WITNESSETH that the Donor, without any taking any
monetary consideration or anything in return from the done and donor out of
love and affection for the done hereby transfer by way of gift, the scheduled
property situated at .............................................. together with all the things
permanently attached thereto or standing thereon and all the liberties,
privileges, easements and advantages appurtenant thereto and all the estates,
rights, title, interest, use, inheritance, possession, benefits, claims and
demand whatsoever of the Donor TO HAVE AND TO HOLD the same unto
the use of the Donee absolutely but subject to the payment of all taxes, rates,
assessments, dues and duties now and here after chargeable thereon to the
Government or local authorities.
5. Whereas the Donor hereby covenant with the Donee;
a. That the Donor now has in himself, absolute right, full power, and
absolute authority to grant the said scheduled property hereby granted as
gift in the manner aforesaid.
b. The Donee may at all times herein after peacefully and quietly enter
upon, take possession of the scheduled property and enjoy the said
scheduled property as he deems fit without any interruption, claim or
demand whatsoever from or by the Donor or his heirs, executors,
administrators and assigns or any person or persons lawfully claiming or to
claim by from under or in trust for the Donor.
c. AND FURTHER that the Donor and all persons having or lawfully
claiming any estate or interest whatsoever to the said scheduled property
and premises or any part thereof from under or in trust for the Donor or his
heirs, executors, administrators and assigns or any of them shall and will
from time to time and at all times hereafter at the request and cost of the
Donee do and execute or cause to be done and executed all such further and
other acts, deeds, things, conveyances and assurances in law whatsoever for
better and more perfectly assuring the said scheduled property and every
part thereof unto and to the use of the Donee in the manner aforesaid as by
the Donee his heirs, executors, administrators and assigns or counsel in law
 shall be reasonably required.
SCHEDULE OF THE PROPERTY
(Gifted under this deed)
All the piece and parcel of immovable property ....................... bearing No.
.......................
Measuring: .......................
Bounded by:
On the East:
On the West:
On the South:
On the North:
Market value of the property gifted under this deed is Rs. .......................
(Rs. .............................................. only).
The Stamp duty is paid on the market value as computed above.
IN WITNESS WHEREOF the Donor as well as the Donee (by way of
acceptance of the said gift) have put their respective hands the day and year
first herein above written.
WITNESSES:
1. DONOR
2. DONEE
How to apply for a BDA flat

Namma Bengaluru, with its burgeoning population, is

witnessing a sea change in the kind of housing that is
available for its citizens. Until as recently as 2005, those
looking to invest or set up base in Bengaluru preferred to
buy a site and build their house from scratch. The reality
now is different. While people will probably always prefer
to own an independent house, the lack of space has made it
necessary for them to look skywards.

The information in this chapter is presented for educating citizens on

bda’s flat offerings and procedures of allotment in general. Please note
that bda is revising costs, eligibility criteria, participating bank branches
etc., With each new offering of flats.
In 2012, the BDA, in line with the real estate trend, declared that ‘vertical’
was the way forward. With this announcement, it began the construction of
30000 affordable housing units, making the flats available to the public.

1. How many projects have been commissioned until

2014?
The BDA has so far constructed or undertaken the construction of about 6000
units in places across the city, including Valagerahalli, Gunjur, Thippasandra,
Nandini Layout, Halagevaderahalli, Malagala, Doddabanahalli, Alur and
Kothanur. Of these, 650 flats in Nandini layout meant for the Economically
Weaker Sections (EWS) (the so-called EWS quarters) have already been
occupied.
In locations such as Valagerahalli Phase 3, Gidadakonenahalli and
Sonnenahalli, projects have been put on hold due to litigations. Once they are
cleared by the courts, work on these projects will proceed. So far, no project
has been cancelled, even as the BDA is pursuing the court cases.
In the 4th notification dated 28 February 2014, the BDA has once again
called for applications for 4228 flats in the following locations:

Name of project: Malagala

1 BHK (EWS): 88
1 BHK (General): 88
2 BHK: none
3 BHK: none

Name of project: Valagerahalli

1 BHK (EWS): 48
1 BHK (General): 48
2 BHK: 48
3 BHK: none

Name of project: Alur

1 BHK (EWS): 600
1 BHK (General): 600
2 BHK: none
3 BHK: none

Name of project: Doddabanahalli

1 BHK (EWS): 56
1 BHK (General): 56
2 BHK: 576
3 BHK: 64
Name of project: Kaniminike
1 BHK (EWS): 304
1 BHK (General): 304
2 BHK: 384
3 BHK: 320

Name of project: Thippasandra

1 BHK (EWS): 84
1 BHK (General): 84
2 BHK: none
3 BHK: none

Name of project: Gunjur

1 BHK (EWS): 238
1 BHK (General): 238
2 BHK: none
3 BHK: none

2. How many flats have been allotted so far?

As of March 2014, four notifications have been published, calling for citizens
of Bengaluru to send in their applications for purchasing a BDA flat. Of
these, the BDA has allotted close to 3850 flats so far. The state budget
presented in February 2014 promised that 8000 flats would be built by BDA
this year.
3. How much do the flats cost?
Type: Carpet Area (sq. ft.)
1 BHK (EWS): 328
1 BHK (General): 328
2 BHK: 600
3 BHK: 900

Type: Built-up area (sq. ft.)

1 BHK (EWS): 470
1 BHK (General): 470
2 BHK: 830
3 BHK: 1100

Type: Initial deposit (in lakhs, Rs. )

1 BHK (EWS): 0.3–1.2
1 BHK (General): 0.55–1.6
2 BHK: 1.0–3.12
3 BHK: 1.5–4.4

Type: Price including deposit (in lakhs, Rs. )

1 BHK (EWS): 5.7–9.75
1 BHK (General): 10.0–13.0
2 BHK: 20.0–25.0
3 BHK: 30.0–35.0

Type: BESCOM & BWSSB deposit (in lakhs, Rs. )

1 BHK (EWS): 0.4
1 BHK (General): 0.4
2 BHK: 1.8
3 BHK: 2.6
Note: This table has the latest pricing of flats as of 28 February 2014.
Previous allotments were done at lower prices. It is not clear whether BDA
will raise flat prices with newer project offerings during 2014–15.
The BDA has signed a Memorandum of Understanding with the following
banks in case applicants wish to apply for a loan to pay for the flats.
i. Canara Bank:
http://www.canarabank.com/english/scripts/pblhousingloan.aspx
ii. Syndicate Bank: http://syndicatebank.in/Downloads/SyndNivas.pdf
iii. Corporation Bank: http://www.corpbank.com/node/58902
Individuals can apply for a regular home loan with any of these banks; about
75–80% of the loan will be covered by the banks, while the rest needs to be
invested by the buyer.
4. What are the eligibility criteria for applying for a
BDA flat?
Several points are included while considering eligibility for BDA flats,
depending on the type of flat.
i. Income limit:
• For those applicants applying under the EWS category (1 BHK only),
the income limit of the applicant’s family should be up to Rs. 3.5 lakhs per
annum.
• There is no income limit for those applying under the general category.
ii. Age: Anyone who has completed 21 years of age is eligible to apply.
iii. Domicile: The applicant needs to be a resident of Karnataka for not less
than 10 years prior to the date of registration of the application. The domicile
requirement is relaxed in the following cases:
• If the applicant is domiciled in Karnataka but serves in the Indian
Armed Forces and is serving outside Karnataka
• If the applicant is domiciled in Karnataka, but has gone outside the State
(for employment or higher studies) and intends to reside in the Bangalore
Metropolitan Area
 • If the applicant is an officer belonging to All India Service, is serving in
the Karnataka State Cadre and domiciled in Karnataka for not less than two
years immediately prior to the date of registration of the application.

• If the applicant is a soldier in the Indian Army serving either in the state
or outside Karnataka
iv. Prior property: Ineligible applicants include those who or whose
dependent family member(s) already own any site, house or flat or have been
allotted a site or house by the erstwhile City Improvement Trust Board
(CITB), the BDA or a co-operative society registered under the Karnataka
Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959) or any such
authority, within the Bangalore Metropolitan Area or has been allotted a site
or house in any part in the State by any other Urban Development Authority
or the KHB or such other agency of the government.
v. Other subsidised allotments: Applicants who have already been
allotted a site/house at a subsidised rate in any part of Karnataka are not
eligible for the allotment of a housing unit under the BDA’s scheme.
5. What is the allotment procedure?
The housing units are allotted as per BDA Allotment Rules, which can be
viewed on http://www.bdabangalore.org/allotmentgeneral.html.
The allotment of flats for applicants of the 1st and 2nd notifications was done
on a first-come-first-serve basis. For the 3rd notification, applicants were
chosen for allotment by means of a lucky draw.
For the 4th notification, the BDA has announced that flat numbers will be
allotted on a lottery basis.
6. Are there reservations or quotas in this scheme’s flat
allotment?
Yes, certain reservations and quotas apply to all the flat allotments. Overall,
50% of the flats are meant for citizens who fall under the General category,
while the remaining 50% are for reserved categories. As per the BDA
notification dated 29 February 2013, the reservation in Allotment (as per
BDA Allotment of Site Rules 1984 Sub-Rule (11)) is as follows:
i. People belonging to Backward Tribes (Category 1): 2%
ii. People belonging to Scheduled Tribes: 3%
iii. People belonging to Scheduled Castes: 13%
iv. Members of the Armed Forces of the Union, Ex-servicemen and
members of families of deceased servicemen: 10%
v. State Government employees: 10%
vi. Employees of the Central Government and Public Sector Undertakings
and Statutory Bodies owned by the State Government or Central
Government: 8%
vii. Physically handicapped individuals: 2%
viii. Persons who have outstanding achievements in the fields of Arts,
Science or Sports: 2%
ix. General Public: 50%
7. What are the procedures and the terms and
conditions for application?
The following points should be kept in mind for the application:
i. The registration and application forms can be obtained from prescribed
banks after paying the specified fees.
ii. The registration and applications forms are priced at Rs. 100 each for
the SC/ST categories and at Rs. 200 each for the other categories.
iii. Eligible applicants need to register their names by paying registration
fees at any one of the prescribed banks. The registration slip should be
retained by the applicant and, upon allotment of a housing unit, must be
returned to the BDA. Those applicants who have already registered for
allotment (in any of the prior notifications) need not register again. The old
registration card can be used to submit the present application.
iv. BDA officers will not issue any application forms.
v. The filled application form along with the initial deposit should be
submitted in the same branch where the registration has been done. An
acknowledgement can then be collected from the bank.
vi. The initial deposit needs to be in the form of a DD/Banker’s
Cheque/Pay Order drawn in favour of the ‘Commissioner, BDA’.
vii. One form allows the applicant to apply for a flat in a single locality. If
you wish to apply for a flat in more than one location, you need to fill out
separate application forms for each of the locations, and initial deposit
applicable must be paid. Only one flat will be allotted to those who have
applied for flats in more than one locality.
viii. The previous application attempts of the applicants will be considered in
terms of seniority over newer applicants (with separate lotteries for both
groups) at the time of allotment of the flats.
ix. The following applications will not be considered for allotment:
• Applications without the initial deposit

• Applications without necessary documents

• Unsigned and incomplete applications

x. No interest will be paid on the initial deposit. This amount will be
adjusted towards the total cost of the flat in the case of successful applicants
and refunded without interest for unsuccessful applicants.
xi. If any of the information provided by the applicant is false or
misleading, the allotment will stand cancelled and the registration fee and
deposit paid will be forfeited.
xii. Limited parking space is available for the flats; in some apartments, it is
available for only about 50% of the flats. Parking spaces will be allotted
among the flat allottees through auction after all the flat allotments are done.
xiii. The BDA reserves the right to reduce or increase the number of flats in
case of unexpected developments.
xiv. The last date to send in applications for the 4th notification is 30 April
2014.
8. What is the procedure for the payment for BDA
flats?
Once the allotment is made, allottees are required to make the payment as
follows:
i. 25% of the housing unit value of the flat within 60 days of receiving the
allotment letter
ii. 25% of the housing unit value of the flat within 120 days of receiving
the allotment letter
iii. Remaining value of the housing unit value of the flat along with the
applicable deposits for water and electricity supply (to BWSSB and
BESCOM, respectively) within 180 days of receiving the allotment letter
Only after the payment of the entire value of the flat and verification of the
documents submitted will the ownership deed for the flat be handed over to
the applicant.
9. What is the quality of construction in BDA flats as
compared to flats by private builders?
Initially, many citizens had reservations about the quality of the BDA flats
since they were being sold for almost half the price that a private builder
would quote for a similar flat. However, by late 2013, this perception has
changed. Buyers are now of the opinion that the flats are apt for middle class
citizens, especially in terms of affordability. Mr. N. G. Gowdaiah, a BDA
Engineer Officer, says that there has been no compromise in the quality of
materials used, considering that the entire scheme was bound to be
scrutinised with a keen eye. While different builders have been chosen for
different locations, all the material that is being used for construction has
been subjected to the requirements of Indian Standard specifications, with
samples of the same being vetted by the BDA.
10. What are the conditions for the resale of BDA flats?
While the BDA certainly hopes that allottees retain their flat and do not put it
up for sale, as of now no conditions have been imposed with respect to the
resale of flats. Once allottees are in possession of the absolute Sale Deed for
the flats, they can choose to sell the flats if they wish to. Even for those who
have been allotted a flat under the EWS category at a subsidised rate, no
restrictions/conditions have been imposed.
11. What are the conditions for the renting of BDA
flats?
As with the case of resale, the BDA says that allottees can choose to rent out
the apartments once they are in possession of the Sale Deed.

12. Can allottees apply for an exchange of flats?

After the first allotment of flats, the BDA stated that a mutual exchange of
flats was possible by interested owners, as long as both the flats belonged to
the same category. For this, both the parties would need to make a joint
application for exchange.
If the allottees are dissatisfied with the flat they have been allotted or have
not been assigned one as per their preferred location, they can choose to
surrender the flat, with a full refund of the money paid thus far.
Subsequently, the individuals can apply once again and priority in terms of
seniority will be given to them at the time of the next flat allotments.
13. Who will register the owners association for the
flats?
The flat owners will need to form their own OA for maintenance of the flats:
the BDA has listed this as one of the conditions at the time of allotting the
flats. The BDA will facilitate the forming of the association.
The Karnataka Apartment Owners Association Act of 1972 will be applicable
to the OA.
14. Who will run the amenities and maintain the
apartments? Who will collect the maintenance fees?
There is a defect liability period of two years for the flats and the common
built-up area. Defects, if any, will be rectified by the builder for up to two
years. The apartments’ OA is expected to handle the maintenance of the flats.
15. Where can I find up-to-date information from the
BDA?
List of allottees from the 2nd and 3rd notifications:
http://www.bdabangalore.org/quicklinks.html
Details of the 4th notification dated 28 February 2014:
http://www.bdabangalore.org/BDA-NEWFLATS-2014.pdf
Registration and application forms for the BDA flats are available at the
following banks (list as of 28 February 2014).

Canara Bank
• Basavanagudi

• BDA Complex

• Hebbal

• Hanumanth Nagar

• Jayanagar Shopping Complex

• K R Puram

• Marathahalli

• Rajajinagar 3rd Block

• Vijayanagar

Indian Overseas Bank

• Bangalore City

• Bannerghatta Road
• Chikkabidarakallu

• HSR Layout

• Indiranagar

• Koramangala

• Kanakapura Road

• Kumara Park

• Mahalakshmipuram

Corporation Bank
• Kumara Park West

• Rajarajeshwari Nagar

• Kengeri Satellite Town

• Whitefield

• Banashankari 2nd Stage

• Magadi Main Road

• Yeshwanthpur
A brief note about land mafia

Land mafia is an informal term used to refer to underworld

and illegal operators who are involved in coercive land
deals, land grabbing, squatting and encroachment. While
the term itself causes concern in people, we are referring to
it in this guidebook primarily to keep you informed rather
than to alarm you.

Most property deals in Bengaluru are between legitimate buyers and sellers.
However, the illegal operators should be kept in mind when scouting for
property. Being aware of the problem is itself the first step to ensure that you
avoid situations involving land mafia. Citizen Matters spoke to a few leading
lawyers in the city to help citizens understand the problem better.
1. Squatter mafia
These people are squatters or illegal occupiers of vacant land that they do not
own. If you own vacant land or you are the direct descendant of someone
who owned a tract of vacant land, do not let the land out of your vigilance.
There are situations where parents may divide a piece of land into sites but
away while leaving the job unfinished. Following this, on occasion, the next
of kin may not have paid attention to the land for years, being busy with their
lives. This leaves the door open for illegal occupation. If you are buying land
where you can see unauthorised occupants, this is the surest sign of a
problem.
Owners of such land/sites can go to the police, but if the squatting party has
even a remote connection to the property by virtue of ancestral claims or
related matters, the police may ask the owner to settle the matter in a civil
court as a dispute.
The recommended defence against this type of problem is two-fold:
• Fence your property and place a banner or plate with your name on it.

• Periodically visit the land be vigilant. Prevention is better than cure.

2. Forced selling of property

Another type of a problem situation in property matters is coerced selling.
People with strong political connections may force owners to sell a key
property only to them and at the price that they set. They may thwart any
attempts the owner makes to sell to the property to others. This often involves
intimidation and is a criminal offence.
There are several cases of owners in Bengaluru who have fallen victim to
such coercion. On occasion, after have signed the sale under duress, the
victims go to court and ask that the particular sale deed be set aside.
This situation appears to arise in some particular circumstances. It is usually a
property with very high value because of the location and the owners may be
senior citizens, women or NRIs with no relatives in India. In essence, these
are vulnerable citizens. Intimidation can also occur if a person owning a
property is an obstacle in the way of a builder pooling together some
properties for a larger development.
It is not appropriate for a guidebook of this nature to give formal advice on
how to tackle such situations since every case varies. However, the following
steps are essential to combat the intimidation:
• Go to the local police station and register an FIR against the
troublemakers over criminal intimidation. Indian Penal Code (IPC) section
503 covers this.
• Do not accept the registration of a ‘complaint’. Some police stations will
offer you this option, since it is easier. Register an FIR only, which places
greater pressure on the police to act.
• If the local police drag their feet on the matter, hire a criminal lawyer
and proceed.
• Even when you go to the police, it may be better to go with a lawyer to
be best prepared.
RENTING
Renting property in Bengaluru

The usual practice for renting out a house or a flat involves

the signing of a Rental Agreement between the two parties
involved. The Rental Agreement is drawn between the
lessor (the owner of the said property or the owner’s GPA)
and the lessee (the tenant) on a stamp paper, with the rental
period being set mostly to a duration of 11 months.

The Rental Agreement is a contract regarding the terms and conditions of the
property being rented and has legal bearing in court. There also are laws
protecting the rights of both the lessor and lessee. Some terms and conditions
in the Rental Agreement are based on clauses in these two laws.
1. What are the rights and responsibilities of the
lessor/lessee?
The terms and conditions agreed to by the lessor and lessee are clearly
outlined in the Rental Agreement. Each agreement will vary based on the
requirements of the lessor and lessee. Listed below are the conditions which
most agreements encompass; both the lessor and lessee have to adhere to
their part of the agreement.
Lessee (renter)
i. Paying the stipulated rent and following the terms of the Rental
Agreement protects the lessee from wrongful eviction by the lessor.
ii. The lessee is bound to pay the stipulated rent on time.
iii. Maintenance charges, if applicable, will be paid on time.
iv. The lessee has to keep the property in good condition.
 v. Based on the Rental Agreement, with prior permission, if the lessee
erects structures or added fittings to the property, these can be removed
when the property is handed back to the lessor.
vi. If the Rental Agreement allows sub-letting of the property, the lessee
has to inform the lessor as and when a sub-lease is created.
vii. If the lessee, on behalf of the lessor, spends money on payments such
as property tax or home repairs, the said amount can be deducted from the
rent.
viii. The notice period will be intimated and adhered to by both parties.
ix. On termination of the agreement, the lessee has to hand over the
property on time and in tenable condition barring small wear and tear.
Lessor (owner, or owner’s power-of-attorney holder)
i. The lessor has to hand over the property in tenable condition to the
lessee by the agreed date.
ii. The lessor is bound to disclose defects in the property to the lessee.
iii. The property is to be well maintained by the lessee, and small wear
and tear is to be fixed by the lessee.
iv. All major repairs will be undertaken by the lessor.
v. Taxes related to the property such as property tax to the BBMP will be
paid on time by the lessor.
vi. The law gives the lessor rights to evict the lessee if he defaults on the
rental or violates any such clauses included in the agreement
vii. The notice period will be intimated and adhered to by either parties.
2. What Karnataka laws cover renting?
There are two laws which protect the rights of both the lessors and the
lessees: The Karnataka Rent Act 2001 and certain sections in Transfer of
Property Act 1882.
The Karnataka Rent Act does not apply to properties which fall under any
one or more of the following categories:
i. less than 15 years old (residential or commercial)
ii. commercial properties with more than a plinth area of 14 sq. m/150
sq. ft.
iii. any residential building where standard rent exceeds Rs.3500/- per
month in municipal areas, and Rs.2000/- per month in other areas
Seen in a strict sense, most properties in Bengaluru are left out of the purview
of this law. However, experienced lawyers note that a lessee or a lessor does
not lose any rights in the light of the above Act. This only means that in case
of a dispute, the lawyer cannot invoke or refer to a particular clause of the
Karnataka Rent Act directly in court for most properties. A typical Rental
Agreement already includes the essence of the law and has legal bearing in
court. Hence, in the event of a dispute, lawyers will typically invoke the
agreement clauses itself in court.
The Transfer of Property Act 1882 clearly states certain rights and
responsibilities of lessees and lessors.
3. Why are Rental Agreements drawn for a period of 11
months?
As per the Transfer of Property Act, any property agreement of 12 months
and above has to be registered with the sub-registrar. Since citizens typically
want to avoid a visit to the sub-registrar’s office merely to register the Rental
Agreement, lessors and lessees mutually agree to draw out terms for a period
of 11 months. This has become the norm over the years. This gives both the
lessor and lessee an option of renewal provided certain conditions are
fulfilled.
It is to be noted that not registering a Rental Agreement with a sub-registrar
does not mean the agreement is not legal. Both the lessee and lessor have
legal rights in an 11-month agreement. However, if the agreement is for more
than 12 months and it is not registered, then it has no legal standing.
4. What should the be value of the stamp paper for
Rental Agreements?
Commonly, Rs.200/- stamp paper has been used for residential rental
agreements in Bengaluru. However this is incorrect. The Karnataka Stamps
Act prescribes a slab of stamp fees, and this was also recently revised.
The latest stamp fees are (the amount of stamp paper value) based on the
duration of the rental agreement and the annual amount of rent involved.

Period of rental agreement Stamp fees

Period less than 1 year 0.5% of annual rent

1–10 years (a day less) 1% of annual rent

10–20 years (a day less) 2% of annual rent

20–30 years (a day less) 3% of annual rent

30 years and over Same as sale deed

The government is not enforcing these rules in part because most residential
rental agreements are un-registered. However if there is a lessor-lessee
dispute and the matter is taken to court, the court will admit the agreement as
evidence only if a fine of 10 times the proper stamp fees is paid to it.
5. How did the 10-month rental advance deposit arise?
There is no legal basis for an advance rental deposit. The calculations for
these deposits vary from town to town. In Bengaluru, the norm followed for
residential properties is a 10-month rental amount. This calculation arises
from the notion that the amount covers defaulting rentals, costs of fixing
damage to property, or court costs in case of eviction. The advance deposit
varies from 6–24 months in the case of commercial properties.
6. What standard deductions can an owner apply when
a lessee or renter exits?
There is nothing defined in the law concerning such deductions, and it is the
Rental Agreement which governs these conditions. In all Rental Agreements,
usually, the lessee agrees to restore the property to its original condition
except for usual wear and tear. This may mean paying for painting expenses
before returning the premises to the lessor, especially after long periods of
tenancy are borne by the lessee.
* Lessors and Lessees are always advised to be aware of all clauses in the
agreement. Prospective tenants need to take necessary measures to ensure
that the property is not under dispute or being attached to a bank or being let
out by any individual other than the owner of the said property (verify title
deeds).
Some lessors attach photographic evidence of the said property for any future
dispute which may arise.
ADD-ONS
Appendix 1 - Water and buying
property in Bengaluru

Officially, the city has run out of water. This is a bare fact that surfaced a few
years ago when the final verdict on the Cauvery water sharing formula made
clear how much water Karnataka is actually entitled to receive. The water
allocation limit for Bangalore from the Cauvery has also been fixed. By all
accounts of population growth in the peripheral areas of Bengaluru, and the
amount of water demand this will mean in the years to come, piped water
supplied by BWSSB-Cauvery has reached its limits.
During more than a decade and a half of rampant growth, borewells have
sprung up everywhere as the city’s primary alternate source of water. Lakhs
of borewells have been drilled, and there is a massive tanker water supply
business thriving in the city. Tankers supply water to apartments, offices,
communities, campuses, and other locations.
Water should one of the first questions on your mind when you examine a
property to buy, especially if you are planning to move in to live there.
What should I first understand about water and buying
any property in Bangalore?
The fact is that the city is parched. There are newer and newer claims made
by politicians and governments about piping water from far-away sources
other than the Cauvery, but these are on paper. These purported projects may
cost thousands of crores and may take a few years to implement. At the time
this guide went into publication, the state government made an announcement
on drawing up a project to bring 750 MLD (million litres a day) of water
from Mekedatu in Ramanagaram district.
In the meantime, the BWSSB, the city’s water board, supplies water
primarily to BBMP limits. While officially the BWSSB maintains that it will
not supply water outside BBMP limits, Citizen Matters has reliably learned
that these jurisdictional rules are conveniently stretched. But in general, if
you are buying a home outside BBMP limits, then be prepared to rely on
alternative sources.
Even within BBMP limits, there are several areas, especially newly added
villages and town municipal councils from the 2007 expansion, which do not
receive BWSSB water. This is either because pipelines are yet to be laid or
because water is not available or both. It can also be because the properties
have massive deviations or lack approvals.
Most people refer to ‘tanker water’ as if it is an independent source itself. Tankers are mere
carriers. They sell water drawn from borewells around the city, sometimes from
agricultural areas. Many apartments and homes today buy water directly from tankers.
Some apartments have entered into long-term contracts with tanker firms for better
leverage on pricing and reliability of supply.

What should I ask the builder if I am buying property

within BBMP limits?
i. Ask whether the project has received an NOC from the BWSSB and
inspect this NOC. See whether the entire project (all towers or the entire
layout plan) has been submitted to BWSSB to obtain this NOC. A BWSSB
NOC only means that the BWSSB has no objection to the builder’s plan to
develop an apartment or layout in that location. It does not mean that the
BWSSB has agreed to supply water.
ii. Ask whether the builder has applied for residential water connections to
the community as part of the project. If so, ask to see the relevant documents.
Do not believe in promises. Always ask for documentation such as
applications, approvals, letters of intent, etc.
iii. If the builder has not applied for a water connection, ask why and
understand the situation in such cases. In some cases, BWSSB officials
themselves will not accept new water connections in some areas if there is no
plan to include service to those areas. This could again be for want of
pipelines or for lack of adequate water provisioning itself.
What alternatives should a builder be able to provide if
BWSSB water is not on the anvil?
i. Check whether there are borewells in the community, how many are
yielding sources, and the depth of the borewells. Ask whether any borewells
went dry since the launch of the project.
ii. Rainwater harvesting (RWH) is now mandatory. Ask the builder what
RWH provisioning has been done. Any apartment or villa community with
common open areas, roof tops of homes, and a storm-water run-off network
has significant water recycling potential. This water can be captured and used
to recharge the ground, or be used to recharge subsoil wells, or to even
directly recharge borewells to ensure a sustainable yield. Ask to see the
schematic or sketch map of the RWH plan.
iii. Ask whether the builder has tied up with a tanker company to source
water from external sources and enquire about the nature of the arrangement.
The cost of this type of arrangement is usually charged to the resident as part
of the maintenance cost of the apartment or home.
What questions can I ask BWSSB to cross-check the
situation in the area?
For the area you are interested in, you can obtain the phone numbers of the
relevant zonal or divisional Executive Engineer (EE) from BWSSB’s website
at www.bwssb.org. Call the EE for the area you are buying the property in
and ask about water supply, new connections, etc. Cross-check this
information with what the builder may have provided you about his
application for a connection, if any. This helps you be better prepared in
making your property decision.

What about areas outside BBMP limits?

The situation outside BBMP limits is not clear. If your community is outside
city limits but very close to the boundary itself, you, your builder, or your
owners’ association may be able to receive BWSSB water eventually as part
of some up-gradation project or other. Otherwise, the non-BWSSB
alternatives will have to become water sources for your property.
Typically, properties in peripheral and far-flung areas of the city rely on
borewell water and/or tanker water. If the groundwater table is higher in that
area, you may receive a continuous supply of borewell water for a few years.
Therefore, as in the answers to the previous questions, ask the builder in
detail about the water supply arrangements such as local borewell water as
well the RWH plan. Understand the pricing and duration of contracts if
tanker water is to be supplied.
In some cases, panchayats (local governments outside BBMP limits) will be
willing to supply water to your community if they are able to do so. This is an
option worth asking about.
Any other tips?
Do not miss the age-old Indian practice of asking around. If you are buying a
property to live in it, during inspection time, it is worth making enquiries
with shops and homes nearby on what water supply is available and how
regular it is. It might be better to do this before you call the BWSSB EE for
the area so that you have some local data to cross-check against what the
engineer tells you.
How does an STP help?
See the chapter on green checklists. A Sewage Treatment Plant (STP) is a
huge asset for any apartment or home community. It recycles waste water
from bathrooms and kitchens as well as sewage and converts this into water
that can be used for watering the landscape, at the very least. Precious
drinking water is then not wasted on beautification. Any recycling water
facility in the community you are planning to buy a property in is better than
none.
Appendix 2: Waste management and
your property purchase

If you are buying a property and planning to reside there, you may be curious
about the garbage collection arrangements. Here is a quick run of the basics.
Within BBMP limits
BBMP rules state that every household must segregate waste before handing
it over to the garbage collection van.
BBMP rules on waste segregation
Wet waste and sanitary waste are to be collected daily, whereas dry waste is
to be collected twice a week. (This typically varies from area to area.)
Who is in charge?
Overall, the BBMP is responsible for the waste management of Bengaluru
city.
At the ground level, pourakarmikas (sweepers) are hired by the BBMP and
private contractors to collect garbage and sweep the outside environs, such as
roads and public spaces.
In some areas, active resident welfare associations are involved in making
segregation happen and even composting.
Who collects waste?
The BBMP collects waste from all households, using vehicles such as autos
and pushcarts.
These autos and pushcarts discard the waste at designated locations, and
larger vehicles, such as lorries and tippers, collect and transport this waste.
In Bengaluru, several NGOs have partnered with apartment communities to
reduce the garbage that goes to landfills, by putting in place a workable
protocol for dry waste collection. Tetra packs, plastics, papers, aluminium
foils etc., are collected separately and are sent for recycling. Two NGOs that
conduct these activities are Saahas (www.saahas.org) and Hasiru Dala
(www.hasirudala.in).

Ground reality
While the BBMP has mandated segregation of waste at source, this has not
been strictly enforced thus far. Often, even when you hand over separated dry
and wet waste to the garbage collection van, it gets mixed and dumped
together.
Garbage collection vans are not always regular and do not always collect the
garbage at a stipulated time. In such cases, it is common to see people dump
garbage by the roadside. Pourakarmikas, while more regular than garbage
vans, also are not always on time. All of this is nothing new to Bangaloreans.
However the BBMP has the right to penalise people for not segregating, and
this has been imposed upon in many instances.
Apartments are considered ‘bulk waste generators’ by the BBMP, hence
BBMP doesn’t collect waste from each apartment in apartment complexes.
Such communities need to find their own solutions, like installing
composting units, or sending wet waste to Karnataka Compost Development
Corporation or other composting companies. For dry waste, they tie up with
NGOs working on zero waste, as mentioned above.
Outside BBMP limits
If the property you are buying is outside the city limits, which includes scores
of apartments being sold today, then the situation is more complex. There
could be varying arrangements for waste management or none at all. Usually,
the local municipal authority or panchayat is responsible for waste collection
and disposal. Segregation is not yet mandatory outside BBMP limits, so
collection is typically lumped waste.
Ask the developer whether the local authority (panchayat or usually town
municipal council) is collecting garbage from the area where your apartment
or home is coming up and if not, clarify the arrangement for waste collection.
At times, private contractors are involved. Ensure that there is some
mechanism in place since uncollected garbage is a high-nuisance issue.
Apartments and gated communities
Regardless of whether you are buying with city limits or not, if your house is
within a gated community, ask for the arrangements the developer has made
for processing segregated waste.
• Is there a compost unit?

• Is there a garden waste shredder?

• Has space in the common area been identified for waste processing?
Going by recent experiences in Bengaluru, it is better to identify waste
processing space as part of the plan of amenities, in the same way developers
account for an STP. Once an apartment community is fully occupied, no one
wants the composting area facing their home or flat.
Ask the developer about arrangements made to collect and transport waste
(segregated/processed or otherwise) to a landfill or to a collection centre of
the local authority. In gated communities, developers or estate maintenance
firms will typically levy a monthly fee per home for garbage collection and
maintenance.
General
If you want to be responsible for managing your waste, you could compost
your wet waste within your house or apartment using compost bin solutions.
Living in Bengaluru, citizenmatters.in/living-in-bengaluru, our other
guidebook, has a whole host of details on this. All dry waste is easily given to
your local recyclewala or a Dry Waste Segregation Centre, run by NGOs like
Waste Wise Trust, Saahas or Hasiru Dala.
Appendix 3: Electricity supply for
Bengaluru – BESCOM

BESCOM is responsible for power distribution in eight

districts of Karnataka, i.e. Bengaluru Urban, Bengaluru
Rural, Kolar, Tumkur, Chitradurga, Davangere,
Ramnagaram and Chikballapur.

Most Bangaloreans are surprised when they find out that BESCOM not only
supplies power within BBMP (city) limits but also a vast area of southern
Karnataka around Bengaluru city. As of early 2014, BESCOM’s website says
that the organization supplies an area of 41,092 sq. km, supplying a
population of 207 lakhs.
Bengaluru’s power situation
As a city that grew 70 percent between the decade spanning 2001 and 2011,
Bengaluru has urbanised rapidly and sometimes with reckless and haphazard
permissions issued by town planners. While the usual opinion amidst citizens
is that power shortage is the cause for repeated outages, the truth is a complex
combination of several issues.
Bengaluru’s underground high tension electricity cables themselves were not
provisioned for the megawatts of power that most neighbourhoods now need.
As a result, even when supply is meeting demand, massive upgradation of
cabling became necessary to transport more watts. This is an ongoing
process.
BESCOM typically says that there is no power shortage in either Bengaluru
or any other districts under its jurisdiction. Scheduled power cuts are due to
maintenance or project work; however, the realities change by season, such
as in summer when power generation does not adequately meet the increased
consumption. Also, day-time peak power shortage is a chronic issue in
Karnataka, with its relative over-dependence on monsoon-fed hydro power.

Power supply in apartments and gated communities

If you are buying a home in an apartment or gated community, you do not
usually need to worry about getting an electricity connection and meter. This
is the developer’s responsibility. However, bear in mind that since the
developer does this wholesale for all the dwellings in the community, the
meters are usually registered in the name of the building company or its head.
This means that as a buyer, you need to follow a simple BESCOM procedure
to transfer the connection from the developer’s name to your name after
taking possession of your property. Ask the developer whether they will help
with bulk processing of meter transfers through the OA. Usually, owners are
left to do it themselves or the association may take it up independently.
Power backup
One of the most troublesome areas in community power infrastructure today
is the backup generator setup. For most apartments being launched,
developers publish brochures touting 24 × 7 power backup. While it is
usually true that developers will install generators, ask the following
questions while prospecting for and comparing properties to buy, especially if
you plan to live in them:
i. What is the generator capacity in watts and is it capable of meeting the
load when all the apartments or homes in the community are occupied? Is this
written and committed in the property documents? At times, developers
under-provision the generator, expecting to wait for fuller occupancy; this
leaves the door open for unmet commitments. A souring relationship between
the owners and developer post-occupation could also put a spoke in getting
commitments fulfilled.
ii. Generators for residential communities are usually the type that take
over power supply automatically within 30 seconds following a supply
interruption. Thus, manual switchover, requiring the presence of a worker on
the spot, is not needed. Confirm that the generator switchover is automatic
and not manual.
iii. Genset configuration for BESCOM partial power restorations:
Electricity is supplied in three phases or separate lines. When BESCOM
restores power after an outage, often, all three phases are not restored at once
—one or two phases are working while the third phase may be restored later.
Some generators, depending on design, setup etc., may not sense this partial
restoration. This will result in erratic behaviour.
• Sometimes both the generator and BESCOM power are running in the
community, depending on the phase, which can cause circuit breakers at
your apartment or home to get confused or trip.

• At other times, the generator may go OFF, sensing the partial-phase

restoration as if it was full power restoration. But since the generator is in
fact supplying a line of homes on some specific phase, this will cause a
new outage. Your community electrician will then need to rush to
manually turn on the generator or even shut down the partial BESCOM
power, to ensure power supply to all homes. All this is time consuming;
further, since generators have complex control panels, not every
electrician is ready to fiddle with them.
• During such outages, critical equipment including water treatment
plants, sewage treatment plants etc., can malfunction. Their control
components may also need repair if such outages occur repeatedly.
Ask the developer about all this, and what arrangements are in place to
ensure smooth transitions. Most details regarding power backup are never
clarified when buying a home in a gated or apartment community. Problems
emerge only when people start living there, and residents are then forced to
deal with incompletely setup infrastructure after the builder has pulled out.
General note on getting a BESCOM connection
If you have bought a plot of land to build your own home, you will need to
get an electricity connection yourself. For this, file an application with the
prescribed fees to the respective BESCOM sub-division for your area.
The following documents are required for this application:
i. Proof of ownership of the premises or occupancy
ii. Proof of permanent residential address
iii. PAN number
iv. Identification proof
The applicant also needs to indicate whether a solar water heater will be
installed as per regulations and produce a relevant undertaking on plain paper
for having it installed in the future.
Appendix 4: How to obtain a Khata for
apartments

This article was originally published in Citizen Matters as

well as our popular Living in Bengaluru 2012-13
guidebook. It has been revised and updated for this
guidebook for the benefit of those buying apartments.

Khata and other relevant documents for apartments

If you are buying an apartment, chances are you will be less worried about
the Khata and more about the scrutiny of the property title, supporting
documents, project completion, payment schedule etc. Most people think of
getting the Khata only after the sale deed is registered.
Nevertheless, here is a quick guide tailored for prospective apartment owners.
i. Collect copies of the documents required from the builder/developer. In
the case of an apartment (or a villa in a layout), the following will be
common for all owners:

• Khata certificate and extract in the name of the builder or previous

owner/title certificate
• Approved site plan/sketch of the layout

• Building plan approval/sanction letter

• Collect the tax paid receipts of the last three years. If you have just
been handed over your property, this would have been paid by the builder.
If you are applying after you have paid tax yourself, then attach your
receipts.
 • OC

• Obtain the betterment charges receipt if paid by the builder. As on

date, the collection of betterment charges is temporarily suspended. If
these are not paid, you may be asked to submit an affidavit stating that
you will pay these charges in future whenever BBMP demands it. A
format of the relevant affidavit is at the end of the article.
• Confirm the bifurcation of property via obtaining the Khata. If even
one person from your building has obtained the Khata, it means that the
bifurcation process is complete. If you are the first one applying for
Khata, then you have to drive the builder to submit the necessary
documents and pay the bifurcation fees.
ii. Collect copies of your property’s documents:
• Sale deed – attested/notarised

• Possession certificate (if you have it) – attested/notarised

• Form III (if you have it), for erstwhile City Municipal Corporation
(CMC) areas – attested/notarised
• GPA (if used) – attested/notarised

• Tax paid receipts of the last three years

• Latest EC valid for at least a year and showing that the property is in
your name. If you have not obtained an EC showing that the property in
your name, then apply for one at the sub-registrar’s office in your
jurisdiction with a copy of your sale deed. You will need to fill up Form
22, which is available free of cost at the sub-registrar’s office itself. You
should obtain the EC in less than three days for an annual fee of around
Rs. 45. You can also obtain the EC through a broker at a higher cost.
• Plan of the flat
iii. Obtain a Khata application form from any BBMP Assistant Revenue
Officer (ARO) Office at a cost of Rs. 10. The form will have a green section
(application) and a pink section (acknowledgement). Fill it up and tag it along
with the documents mentioned in points i and ii above. It is important that
you write your mobile number.
iv. Your application form is now ready for submission. Submit it at the
local ARO Office and obtain the pink acknowledgement slip. This slip should
be stamped and signed with the relevant submission number.
Letter format that can be used by apartment owners to obtain their
documents:
To
The ARO, ___
Bangalore
Dear Sir/Madam,
Sub: Property at __ {address}__, bearing municipal no. __ xxxx {copy this
from the notification}__
I request you to please issue the Khata Certificate and Khata Extract for the
abovementioned property.
A copy of the latest property tax receipt is attached. The fee of Rs. 125/-
towards the Khata Certificate and Khata Extract was already paid along with
the Khata fee/is being paid herewith.
Thanking you,
XXXX
(Owner’s signature and name)
v. Go back after 15 days to check the application status. Keep doing this
till you obtain a notification (demand note).
vi. The demand note indicates the amount you need to pay as Khata
registration fee, payable by Demand Draft (DD). The registration fee is 2% of
the stamp duty paid as mentioned in your sale deed. The demand note is
issued in batches. So do coordinate with others in your building whose names
are in the demand note to obtain all the DDs together. (Note: if yours is a
resale property and the previous owner did not register the Khata in his/her
name, you will have to pay 2% of the registration value of that sale deed also.
In this case, you will need to attach an attested/notarised copy of that sale
deed along with the documents mentioned in point ii.)
vii. Submit the DDs as per the demand note to the ARO Office and obtain a
stamped acknowledgement. A receipt should also be issued but this may be
given along with the Khata notification or Khata certificate.
viii. Wait for about 15 days and follow up. Do this every 15 days or so.
ix. Check the notification to see that your name is spelt correctly along with
verifying that other information such as the area of the flat, car park, and so
on are correct. Submit the Khata notification to the ARO office along with an
application requesting issue of the Khata certificate (pay Rs. 25) and Khata
extract (pay Rs. 100). Go back as requested by the ARO office to collect your
Khata certificate and Khata extract.
Obtaining a Khata through Sakala
Sakala, also known as the Karnataka Guarantee of Services to Citizens Act,
2011, introduced in March 2012, is an initiative introduced by the erstwhile
BJP government in Karnataka. It aims at bringing transparency in
administration. There are various services offered under Sakala, including
obtaining a Khata for your property. For more information on Sakala, visit
the website http://sakala.kar.nic.in/gsc_home.aspx.
The Sakala website mentions the list of documents required for submitting
your Khata registration application, but this list is not completely correct or
exhaustive.
To apply for the Khata for a new property (Khata registration) through
Sakala, here is what you need to do.
i. As mentioned in the previous list
ii. As mentioned in the previous list
iii. As mentioned in the previous list
iv. Submit the form to the ARO Office and tell the BBMP case
worker/receiving clerk that you are submitting the Khata application form
under Sakala. He/she will then upload your Khata application details to
Sakala, and you will be given a 15-digit acknowledgement number (GSC
number) which will be sent to your mobile phone.
v. If the case worker/receiving clerk is hesitant to accept your application,
find out if anything is wrong or if there are any other documents you need to
submit. If there are genuine problems or requirements, you can correct
them/obtain the required documents and then submit the form again. If you
find the demands unreasonable, or if the worker does not want to accept the
application under the Sakala scheme, do not hesitate to escalate the matter at
the Sakala helpline number +918044554455. If making a complaint using the
Sakala helpline does not help, contact the Lokayukta at +918022251394,
+918022257013, or kla-reg@nic.in.
vi. Once the form is submitted, contact the BBMP office after a few days to
know the approval status. According to the Sakala website, approval should
take not more than 30 days. You can also check the status of your application
through SMS. You will need to SMS the 15-digit GSC number to
9243355223/09212357123. The system will reply with the status. For
example, to see the status of GSC number ‘CT0010010200362’, SMS ‘GSC
CT0010010200362’ to 9243355223/09212357123.
vii. The rest of the steps are as the same as those mentioned in the earlier
list.
According to the Sakala website, the following is the work flow for the
processing of a Khata registration:

Step Description

Receiving and verification of document issue of acknowledgement by

case worker/receiving clerk
1
No. of Days : 1:00
Designation: Case worker

Office manager - for verification and placing before ARO for

acceptance and referring to the concerned ward case worker
2
No. of Days : 1:00
Designation: Manager
 ARO/manager - for approval to refer the file to case worker
3 No. of Days : 1:00
Designation: Others

Case worker - to register in khata transfer books and verification of

documents with reference to existing assessment entries before putting
up preliminary report
4
No. of Days : 2:00
Designation: Case worker

Manager/case worker - for approving the preliminary report and

referring the same to the concerned revenue inspector or to issue
suitable endorsement if any to the applicant
5
No. of Days : 1:00
Designation: Manager

Revenue inspector - for verification of documents, spot inspection etc.,

and putting up necessary reports on file
6
No. of Days : 5:00
Designation: Inspector

ARO - for verification of reports/documents and inspection if

necessary and for report
7
No. of Days : 2:00
Designation: Others

Revenue officer - for verification/inspection and approval or

recommendation reports
8
No. of Days : 3:00
Designation: Revenue Officer
 Zonal deputy commissioner - for approval or recommendation
9 No. of Days : 2:00
Designation: Deputy Commissioner

Zonal additional/joint commissioner - for orders

10 No. of Days : 3:00
Designation: Additional / joint Commissioner

Zonal deputy commissioner/revenue officer - for sending the file to

concerned ARO
11
No. of Days : 2:00
Designation: Deputy commissioner

ARO/manager - for referring the file to case worker for collection of

khata transfer fee etc., and preparing mutation
12
No. of Days : 2:00
Designation: Others

Case worker - for preparation of mutation

entries/endorsement/remittance of fees and computerization of data
etc.
13
No. of Days : 2:00
Designation: Case worker

Manager - for scrutiny of mutation entries and endorsement

14 No. of Days : 1:00
Designation: Manager

ARO - for verification and approving the endorsement/certificate

15 No. of Days : 1:00
Designation: Others

Case worker - for dispatch of certificate to the applicant

16 No. of Days : 1:00
Designation: Case worker

There could be variations in the procedure mentioned because different ARO

offices could work slightly differently. But there is no need to despair; ask
questions and find out what the procedures are when in doubt.
If you are the first person in your building applying for the Khata, the process
may take slightly longer because of the number of entries which need to be
made in the records. If even one person in your building has the Khata, you
should get yours quickly as per the process.
Format of Affidavit for Betterment Charges
Affidavit to Commissioner, Bruhat Bengaluru
Mahanagara Palike
I/We am/are the owner of the property bearing Khata No.: ………………..
Flat# …….. under survey number ……………, ………………. (address -
village, division, zonal office). This property has been converted to
residential purpose vide Official memorandum No. ……….. dated ………..
issued by the Special Deputy. This property is in my/our possession and so
I/we have applied for a Khata transfer of this property on ………. (date).
According the BBMP circular number ………… dated …….., a betterment
fee of Rs. ……… per square metre is required to be collected for Khatas
newly getting registered/bifurcated.
However, as per the Karnataka High Court order number: w.p. no: 40/2013
(LB-BMP) dated 10 April 2013, collection of betterment charges according
to the abovementioned BBMP circular/rules has been suspended. Therefore,
I/we hereby agree to pay the betterment charges in accordance with the rules
that would be implemented.
Date: ……..
Signature(s)
Name(s) of the person(s)
Appendix 5: Web access to
Bengaluru’s master plan

Access to Bangalore’s Revised Master Plan

For those who want more details on zoning and land use for the particular
area they are planning to buy a property in, or even details such as the floor
area ratio (FAR) for a road, the usual reference is the city’s Revised Master
Plan (RMP) document, called the RMP 2015. This document was drafted in
2005 and approved in 2007, and it is valid until 2015, i.e. next year.
This RMP document is a massive book; it measures nearly 3 feet × 2 feet and
is cumbersome to be carried around. It is also expensive to obtain the book
from the BDA. Developers and top realtors in the city usually have copies of
the book. Journalists also use the book. But for the common man, it is an
arduous task to even worry about obtaining a copy from the BDA.
In this light, the DRUSHTI website at http://drushti.geogo.in/ affords
welcome relief.
DRUSHTI is a web-based Geographic Information System available for the
general public to refer to the RMP 2015 for the city of Bangalore. This
system provides easy and interactive access to citizens to search for and refer
to zonal regulations against the cadastral map of villages and survey
numbers.
System uses
The system can be used to:
i. Search by Hobli/Village/Survey Nos. and determine the proposed land
use category for the area as per the RMP2015
ii. Find the proposed land use zoning plan for a specific area such as a
road, valley, buffer zone, or planning perimeters
iii. Obtain the regulations applicable to land use zones such as setbacks,
FAR, etc.
iv. Measure the exact dimensions of an area or a point of interest
v. Verify if a piece of land lies in a non-inhabitable or eco-sensitive zone
such as a valley
vi. Overlay RMP2015 layers over satellite images for better reference
System limitations
The system currently cannot be used to:
i. Refer to city information apart from the RMP 2015
ii. Refer or vouch for any property-related information
iii. Refer to information linked to jurisdictions other than the BDA
iv. Download or print maps for further use and reproduction
Project DRUSHTI
DRUSHTI was developed by Bangalorean Suvajit Sengupta, a specialist in
spatial and related technologies. He works in the fields of urban
transportation, planning, and development with interests in photography,
calligraphy, and design. He can be reached at suvajit.sengupta@gmail.com.
Sengupta originally developed DRUSHTI for the BDA, and the project is yet
to be formally announced. In the meantime, the tool itself is accessible to the
public at http://drushti.geogo.in/.
Appendix 6: Sub-registrars Bengaluru

Gandhi Nagar
3rd and 4th Floor, Annex Building, Bangalore city DC Office, Compound,
Bengaluru 560009 Email: gansro@gmail.com Ph: +918022959353
Malleswaram
No. 11-12, Ist Floor, I & II Main Road, Palace Guttahalli, Bengaluru 560003
Email: sromalleshwaram@gmail. com Ph: +918022959357 / +918023462059
Ganga Nagar
No. 70, Ist Floor, above Kanthi Sweets, 5th Main, Ganga Nagar, Bengaluru
560032 Email: sro.gnr@gmail.com Ph: +918022959359
Hebbala
No. 69, Opposite Vidyanjali Public School, Cholanayakana Halli, RT Nagar
Post, Bengaluru 560032 Email: srohebbala@gmail.com Ph: +918023532961
Kacharakanahalli
No. 111, 9th Main Road, 3rd Stage Pillanna Garden, Near Bilal Masjid,
Kacharakanahalli, Bengaluru 560045 Email: sro.kch1@gmail.com Ph:
+918022959321
Byatarayanapura
No. 641, Kodigehalli Mainroad, 1st Floor, BBMP Ward No. 8, Bengaluru
560092 Email: sro.byp@gmail.com Ph: +918022959341
Yelahanka
No. 15, 1st Main Road Sree Rudhreswara Chambers, Yalahanka New Town,
Bengaluru 560064 Email: sroyalahanka@gmail.com Ph: +918022959361
Addl. District Registrar Office
BDA Kumara Park West, Bengaluru 560020 Email: adrobda@gmail.com Ph:
+918023345799
Sub-Registrar’s Office
JALA Sericulture Cum Farmers Service Co-operative Bank Ltd., Chikkajala,
Near Nada Kacheri, Opp. Chikkajala Police Station, NH7, Bellary Road,
Bengaluru North Taluk, Bengaluru 562157 Email: sro.jal1@gmail.com Ph:
+918022959337
Jaya Nagar
12th Main Rd, 4th Block, Near Jaya Nagara Complex, Bengaluru 560041
Email: srojay@gmail.com Ph: +918022959347
Jaya Nagar
12th Main Rd, 4th Block, Near Jaya Nagara Complex, Bengaluru 560041
Email: srojay@gmail.com Ph: +918022959347
Shanthi Nagar,
29/1-2, 2nd Floor, 7th Cross, Wilson Garden, Bengaluru 560027 Email:
sro.shr@gmail.com Ph: +918026654584
BTM Layout
No. 76, 36th Main Road, Dollars Scheme, Near Central Silk Board, B. T. M.
Layout Ist Stage, Bengaluru 560068 Email: srobtm@gmail.com Ph:
+918026682017

Kengeri
SLN complex, Mysore Road, Near BTS Bus Stand, Kengeri, Bengaluru
560060 Email: sro.ken123@gmail.com Ph: +918028484159
Rajarajeshwari Nagar
No. 25, DM Chambers Jawaharalal Nehru Road, BMEL Road, 3rd Stage,
Rajarajeshwari Nagar, Bengaluru 560098 Email: sro.rrn@gmail.com Ph:
+918022959329
J. P. Nagar
No. 8, Ameet Arcade, Amrutha Nagara Main Road, Konanakunte, Bengaluru
560062 Email: sro.jpn@gmail.com Ph: +918022959330
Bommanahalli
2nd Floor, 7th Cross, 3rd Block, Koramangala BDA Complex, Bengaluru
560034 Email: srobmh@gmail.com Ph: +918025501428
Begur
No. 1105/9C, 1st Floor, Above Canara Bank, Near Bus stand, Begur Village,
Bengaluru 560016 Email: srobegur@gmail.com Ph: +918022959328

Tavarekere
No. 1943, Anugraha, Tavarekere-Kengeri Road, Tavarekere, Bengaluru
562130 Email: sro.tavarekere@gmail.com Ph: +918028440714
Basavanagudi Old
No. 45, New No. 52, 2nd Main Road, N. R. Colony, Basavanagudi,
Bengaluru 560019 Email: sro.bsg@gmail.com Ph: +918022959368
Chamarajapete
3rd Main Road, Near Rameshwara Temple, Chamarajpet, Bengaluru 560018
Email: srocmp@gmail.com Ph: +918026606641 Ph: +918026601962
Banashankari
Agriculture Produce Co-op Marketing Society Building (APMC),
Kanakapura Road, Banashankari, Bengaluru 560070 Email:
bsk.subregistrar@gmail.com Ph: +918022959331
Anekal
Mini Vidhana Soudha, Taluk office premises, ANEKAL, Bengaluru 562106
Email: sro.ank@gmail.com Ph: +918027841096 / +918027841753
Attibele
No. 430, Anna Building, Hennagara Gate, Bommasandra Industrial Area,
Hosur Main Road, Bengaluru 560099 Email: sroabl07@gmail.com Ph:
+918027831797 / +918027836583
Sarjapura
No. 964/1015, Vidya Nagar, 60th Cross, Sarjapura, Anekal Taluk, Bengaluru
562125 Email: srj.sro@gmail.com Ph: +918027823318
Jigani
House No. 459/39/2, Bannerghatta Village, Opp. Police Station,
Bannerghatta, Bengaluru 560083 Email: subregistrarjigani@gmail.com,
srojgn@gmail.com Ph: +918027828207
Rajaji Nagar
No. 27/C, 3rd Main Road, Industrial Estate, Rajaji Nagar, Bengaluru 560010
Email: sro.rjjn@gmail.com Ph: +918023158206
Yeshwanthpura
No. 51/C, 3rd Main Road, Lorry Stand Godown, Opp. Janatha Bazaar
Godown, A. P. M. C. Yard, Yeshwanthpur, Bengaluru 560022 Email:
sroypr@gmail.com Ph: +918022959366 / +918023573292
Peenya
No. 488, 2nd Floor, KIADB Building, ‘P’ Block, IV Phase, Peenya II Stage,
Bengaluru 560058 Email: sropny@gmail.com Ph: +918028366091
Srirampura
No. 46, 1st Floor, Magadi Main Road, Next to Anjan Theatre, Kempapura
Agrahara, Bengaluru 560023 Email: srosri@gmail.com Ph: +918022959367
Laggere
No. 13, Andanappa Building, Laggere Main Road, Near Parvathi Nagar Bus
Stand, Bengaluru 560058Email: srolag@gmail.com +918022959323
Nagarabhavi
No. 40, 1st floor, 2nd Stage, 1st Block, Nagarabhavi, Near BDA Complex,
Bengaluru 560072 Email: srongb@gmail.com Ph: +918023215215
Madanayakanahalli
No. 1, 1st floor, Laxmipura Road, B. H. Road, Opp. Mahaveer Nursing
Home, Madanayakanahalli, Dasanapura Hobli, Banglore-562123 Email:
sromdl@gmail.com Ph: +918022959325

Dasanapura
No. 33/4, B. H. Road, Devannana Palya, Dasanapura, Bengaluru North
Taluk, Bengaluru 562123 Email: srodasanapura@gmail.com Ph:
+918022959326
Vijaya Nagar
No. 1019/A, Sri venkateswara complex, 1st Floor, 2nd Main Road, Service
Road, Near BSVP School, Vijaya Nagar, Bengaluru 560040 Email:
srovjn@gmail.com Ph: +918022959349
Shivaji Nagar
No. 26, I & II Floor, Leonard Lane, Richmond Town, Bengaluru 560025
Email: shvsro@gmail.com Ph: +918022959340
Kr Puram
Old Madras Road Near Santhemaidana, KR Puram, Bengaluru 560036
Email: sro.KRP@gmail.com, sro.kri@gmail.com Ph: +918025614548
Varthur
B. M. Complex, 1st Floor Opp. Dharamaraya Swamy Temple, Mutsandra
Road, Varthur, Bengaluru 560087 Email: sro.vrt@gmail.com Ph:
+918028539198
Bidarahalli
No. 3/1 Virgo Nagar, Old Madras Road, Avalahalli, Bidrahalli Hobli,
National Highway-4 Bengaluru 560036 Email: sro.bdh@gmail.com Ph:
+918028472677
Banasawadi
No. 740/1, BMP Khata No. 25, 1st Floor, 9th B Main Road, HRBR Layout,
1st Block, Kalya Nagar, Banasawadi, Bengaluru 560043 Email:
sro.bns@gmail.com Ph: +918022959335
Mahadevapura
No. 52 Kamadenu Nagara, 1st stage, 2nd Main Road B. Narayanapura,
Behind HP Company, Bengaluru 560016 Email:
sro.mahadevapura@gmail.com Ph: +918022959342 Fax: +918028917319
Ulsoor
BBMP Building, Tank Bund Road, Ulsoor Lake, Ulsoor, Bengaluru 560008
Email: sro.hls1@gmail.com Ph: +918022959369

Indira Nagar
Domlur BDA Complex, Bengaluru 560038 Email: sroinrblr@gmail.com Ph:
+918025352907
AUTHORS, REFERENCES AND
MORE
About the authors

Citizen Matters guidebooks are works of collaboration, curation, and editing.

The chapters in this book have been authored by several journalists and
writers based on detailed conversations with lawyers, officials, and domain
experts. TimelyEdit, a Bangalore-based firm, undertook the editing for this
guidebook.
Sriram Vittalamurthy (Understanding the Fundamentals, Properties in
Communities)
Sriram Vittalamurthy is an independent journalist and photographer. He
specialises in investigative reporting projects. He has authored several major
stories for Citizen Matters.
Vaishnavi Vittal (Properties in Communities and appendices)
Vaishnavi Vittal is a Bangalore-based journalist. She was formerly staff
journalist at Citizen Matters. She is the winner of the Laadli Media award in
2012.
Moumita Bhattacharya (All about Registration and Eye on the Money)
Moumita Bhattacharya is an information developer and editor with an MNC.
She speaks out against corruption and social injustice and helps citizens.
Josephine Joseph (Buying and Geography, Renting)
Josephine Joseph is a public affairs researcher and writes for Citizen Matters.
She has been working on urban governance and civic and environment issues
in the city.
Citizen Matters staff team
Shree D. N. (Associate Editor), Ganga Madappa (Staff Reporter and
Community Manager), and Nikita Malusare (Staff Reporter) contributed to
the book chapters and research.
Subramaniam Vincent
Subramaniam Vincent is the architect of this guidebook. He is the co-founder
and editor of the Citizen Matters and India Together e-newsmagazines. He
believes that an original purpose of journalism is to provide information to
citizens so that they may be free and self-governing.
Honorary adviser and legal review
Vatsala Dhananjay, http://propertylawyersbangalore.com
Other author credits
Arathi Manay Yajaman (Khata guide for apartments)
Arathi Manay Yajaman is citizen extraordinaire, and she is associated with
the Puttenahalli Lake Improvement Trust.
Geeta Sajjanshetty (Gift deeds)
Geeta Sajjanshetty is a city-based lawyer.
Rama Murthy P (Under-construction apartment experience)
Rama Murthy P is an engineering and design professional.
Sridhar Comaravalli provided the illustrations.
References and Acknowledgments

Citizen Matters guides are painstakingly researched, curated, and edited with
special focus on citizen-orientedness. We refer to laws, bye-laws, government
published material, news articles, and more in the writing and publishing of
our articles. We also directly spoke to a whole host of individuals —
professionals, citizens, and officials —and they are credited in the
Acknowledgements section that follows the references.

Land types in Bengaluru

• BDA’s RMP 2015
• BMRDA website—http://www.bmrda.kar.nic.in

• BIAAPA website—http://www.biaapa.in

• BMICAPA website—http://bmicapa.org

Property Taxes, betterment charges, and more

• Property Tax FAQ—bbmp.gov.in
• BDA Act 1976—http://dpal.kar.nic.in/12%20of%201976%20(E).pdf

• BDA Property Tax 2002

—http://dpal.kar.nic.in/ao2002/BDA%20&%20certain%20other%20law%20Act.pdf
• Gram Panchayat Act 1993
—http://dpal.kar.nic.in/14%20of%201993%20(E).pdf
• Citizen Matters article — http://bangalore.citizenmatters.in/articles/2703-
khata-panchayat-bda-tussle
Checklist to help with green property purchasing
• Citizen Matters articles — http://bangalore.citizenmatters.in/articles/562-
rainwater-harvesting-layout
• http://bangalore.citizenmatters.in/articles/587-rwh-guide-

• http://bangalore.citizenmatters.in/articles/5025-water-problems-what-
builders-can-do
• http://bangalore.citizenmatters.in/articles/1994-now-organic-waste-
converter-malleshwaram-market
• http://bangalore.citizenmatters.in/articles/4650-your-apartment-complex-
waste-free-zone
• http://bangalore.citizenmatters.in/articles/a-large-scale-composting-
model-bangalore-s-apartments-can-emulate
• http://bangalore.citizenmatters.in/articles/4697-if-bbmp-says-no-to-
collecting-what-can-apartments-do
• BWSSB website — www.bwssb.org

• KSPCB — http://kspcb.kar.nic.in/STP-Guide-web(Med).pdf

Renting property in Bengaluru

• Karnataka Rent Act
—http://dpal.kar.nic.in/34%20of%202001%20(E).pdf

• Transfer of Property Act — http://dolr.nic.in/Acts&Rules

5CTransferOfPropertyAct(1882).htm
• Manupatra, legal research website —
http://www.manupatrafast.com/articles/PopOpenArticle.aspx?ID=3227306d-
a83a-4bbe-a328-cd2a37cf824e&txtsearch=Subject:%20Property -
Bengaluru's property geography
• Urban floods —
http://wgbis.ces.iisc.ernet.in/energy/water/paper/urbanfloods_bangalore/floods_city.htm
• Flood prone areas in the city —
http://www.newindianexpress.com/cities/bangalore/1077-areas-in-city-are-
flood-prone/2013/06/28/article1656846.ece

• BIAAPA bye-laws — http://biaapa.in/byelaws.htm

Bank loans for buying property

• RBI Circular on foreclosure DBOD. No. Dir. BC. 107 / 13.03.00/ 2011-
12.

• Updates on housing finance from RBI

• http://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?
id=6510#L9
• http://www.rbi.org.in/scripts/FAQView.aspx?Id=77
http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=5579
Note: All banks and financial institutions work within the guidelines issued
by the Reserve Bank of India.
What to know before buying flats in high-rise
apartments around airports in Bengaluru
• http://biaapa.in/byelaws.htm
• http://www.aai.aero/public_notices/atmc2_13_17jan13.pdf

• http://indianairforce.nic.in/pdf/NOC_construction-Aero_Helidromes.pdf

VAT and service tax for buying property

• Ministry of Finance Notification, 20 July 2012
• Finance Act in 2013

• Ravi Shankar Raman, Chartered Accountant

Appendix 2 Waste management and your property

purchase
• Citizen Matters Waste Management page —
http://bangalore.citizenmatters.in/Waste%20Management
• BBMP Solid Waste Management —
http://218.248.45.169/download/health/swm.pdf
Appendix 3 Electricity supply for Bengaluru
• BESCOM website
Acknowledgements
A book like this for a city like Bengaluru is impossible to complete without
the help of numerous people who by virtue of their domain experience
contribute in one way or other. Listed below are people we are grateful to for
taking the time to speak to the authors of various chapters, often over
multiple conversations.
Professionals
• Vatsala Dhananjay, Property Lawyer

• Arvind Raghavan, Property Lawyer

• Keshav Kumar B., Lawyer

• Ravi Shankar Raman, Chartered Accountant

• Prashanth Rai, Chartered Accountant

Officials
• Gowdaiah N. G., BDA Engineer

• L. V. Shadakshari, Sub-registrar, Sarjapura

• Bhojyanaik, Assistant Inspector General of Registration

Realtors, developers, corporates
• Santosh Bhurani, Bhurani Real Estate

• Ajit Prakash, Sana Group

• Ashwin Pai, Century Real Estate

• V. Gopal, Executive Director, Projects & Planning, Prestige Group

• B. S. Harikrishna, BCIL

• Ashok D. M., CEO, AVI Solar Pvt. Ltd.

• Poonam Bir Kasturi, Founder, Daily Dump

Citizens and civil society
• S. Vishwanath, Founder, Rainwater Club

• Shubha Ramachandran, Water Sustainability Consultant, BIOME

Environmental Solutions Pvt. Ltd.
• Manjunath Athrey, Resident, Chaitanya Samarpan

• Raghu Rao, Managing Committee Member, Chaithanya Samarpan

Owners’ Welfare Association
• Vaman Acharya, Chairman, Karnataka State Pollution Control Board

• Ananth S. Kodavasal, Ecotech Engineering Consultancy Private Ltd

• Akshay Yadav, Member, Green Commandos

Bank officers
• Naveen Kumar G. C.

• Kalyan K. Sinha

• P. Kiran

• Niranjan, Manager
• Manish
Praise for Get to Know Bengaluru
Better

Attractively produced, elegantly written, and massively informative, this is an

invaluable guide to India's most energetic and (arguably) most cosmopolitan
city. Residents and visitors alike shall hugely profit from it.
With this wonderful book in hand, I myself look forward to a deeper
acquaintance with the culture, cuisine, architecture and heritage of my home
town.
Ramachandra Guha
Eminent Historian

In just eight hours, I more than doubled my knowledge of Bengaluru despite

living in the city for over 50 years. A must-have book for all Bengaluru
residents who would like to explore the city with friends and families. Parents
can find dozens of places to entertain young children. This book will banish
boredom for all Bengaluru residents.
Shankar Jaganathan
Author and Economic Historian

Get to Know Bengaluru Better is a compendium of information about this

magnificent city and its thousand attractions, scientifically analysed and
suitably arranged. The new settlers in the city can find out the markets and
museums, parks and beauty spots, theatres of entertainment, places of
worship and the rest. Open the book and you will find that out easily.
Nadoja Dr. G. Venkatasubbiah
Centenarian, Lexicographer and Kannada Scholar

A much needed book that gets to the meat of the matter...“know Bengaluru
better”. This book is concise and faithful in the way it gives the reader details
of famous places and forgotten or hidden nooks and corners that define our
dear city Bengaluru. An honest ‘must have book’ for every resident or visitor.
Arundati Nag
Actor and Theatre Personality
Praise for Living in Bengaluru
(From the print edition)

“Living in Bengaluru is truly an information-packed handbook that empowers

citizens. It brings transparency to opaque governmental systems that frustrate
us.
Rajeev Gowda
Professor of Public Policy, Indian Institute of Management, Bangalore

“Written in a concise, factual manner, this book guides you through everyday
transactions like getting a driving license, choosing the right school board or
filing your property taxes. It’s like having a lawyer and chartered accountant
on call, any time you want. This book cuts through the clutter to deliver
simple how-tos. An ideal book for every Bangalorean, I suggest that no home
should be without a copy.
Jessie Paul
Marketing expert and CEO, Paul Writer

A very nice and useful compendium listing information invaluable for

citizens, who would like to help improve the functioning of various service
providers, but do not know whom to contact and where to complain. Each
city must have a resourceful tool like this. Kudos to Citizen Matters for
putting this together.
Sakuntala Narasimhan
Writer, musician and consumer activist

This guide to how citizens can navigate government paperwork and

bureaucracy for various purposes will give great relief to many - especially in
a system like ours, where the convenience of the citizen is not a priority. The
insight with which this book has been put together is testimony to the similar
situations we all face on a day-to-day basis and answers almost all questions
we have all wanted to ask at some point or another.
 Vasundhara Das
Singer and actor

“Citizen Matters, true to its charter has once again published a wonderful
little treasure—a DIY guide for Bangaloreans to make their daily lives hassle
free. It is a timely and useful tool for citizens of this megapolis of Bangalore,
where even routine civic issues and administrative procedures can get
frustrating. Congratulations CM for helping Bangaloreans!
R. K. Misra
Member, ABIDe task force for Bengaluru and urban reforms campaigner

Living in Bengaluru is an extremely useful book for the citizens of

Bangalore. It gives citizens, a bird’s eye view of the procedural formalities
that one has to observe while getting the desired services. This is a long felt
need and it will help citizens save time and effort. I welcome this effort from
Citizen Matters.
N. S. Mukunda
President, Citizens’ Action Forum, Bangalore