• DC Conversion of Residential Yellow Zone

Sir,

I am planning to buy a flat constructed on a B khata land in Bangalore. The plot comes within the BBMP yellow zone marked for residential usage. The owner has paid all taxes till date. The tax paid receipts assess the property as as residential usage property.The flats have PID numbers. The construction plan was approved by the BBMP. I had the property verified through a lawyer and he says there are no litigation and owner has all the rights to sale and transfer the property. But at the same time he made an observation that, that no DC conversion has been made for the site. 
I am not sure if DC conversion is mandatory ? I understand it is used to convert agricultural land to residential usage. but since this porperty comes under residential zone , is a DC conversion needed. Should i press the owner to apply for the same or is it ok for me to go ahead with the purchase.
I could have consulted the lawyer who made the observation but he is unreachable
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

1) If you are purchasing residential land than DC conversion is needed. Litigation is different thing and DC conversion is different thing. DC conversion is government authority permission, that should be transferred from agricultural to non agricultural.

2) What is DC Conversion?

Answer: Land Use Conversion is commonly referred to as DC Conversion. “DC” stands for Deputy Commissioner since the authorization to use land for non-agricultural purposes is issued by the Deputy Commissioner. However, in some cases the conversion can also be done by a Tashildar.

The State Town Planning Authority is responsible for developing the Comprehensive Development Plan (CDP), often referred to as the Master Plan. This plan covers wide geographic areas and is responsible for indicating which specific areas in Karnataka are meant for conversion from agricultural to residential or commercial uses over the long-term. Before allowing the Conversion to happen, the Deputy Commissioner verifies that the land is scheduled for non-agricultural use as per the CDP and only if that is the case, he/she proceeds with the conversion.

3) What happens if you construct a house or other structure on land which has not been authorized for DC Conversion?

Answer: Non Agricultural use of land that has not gone through DC Conversion is not a good idea. This is because such properties will not be able to obtain an “A Khata Certificate” from the Bangalore Bruhat Mahanagara Palike (BBMP). Such properties can only be registered under the B Khata Register which is commonly also referred to as a “B Khata Certificate”.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

Deputy Commissioner gives the authorization to use land for non-agricultural purposes, a agricultural land that need for any other purpose than agriculture than it need a conversion certificate failing which the A khata certificate is granted. Also depending on jurisdiction of area tehsildar also grants the certificate.

If this is not done then the purchaser of the property or the owner of the agricultural plot would be liable for legal action and penalty. The construction on it can be deemed to be unauthorized and action can be taken so it is advisable to take a DC conversion for said land.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

The difference between A Khatha and B Khata are as follows:

An A khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license.

Then how did the term B Khata come into being?

Well in 2007 when BBMP came into being 2 things were apparent:

1) There were many properties that fell under its jurisdiction that were illegal constructions

2) There was a need for an uniform taxation policy

Regarding the former the BBMP found that these illegal constructions were enjoying civic amenities without paying taxes. While regarding the latter, there was a need to consolidate the tax collection process to make it simpler which was earlier collected by 3 different bodies.

Now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the khata issued therein was known as a B khata.

Thus anyone having a B khatha essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.

However, it is only fair to mention that any B khata property can be converted into an A khata property.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

1)conversion of agricultural land to non-agricultural uses and purposes is carried out under the provisions of Section 95 of the Karnataka Land Revenue Act, 1964, by the Deputy Commissioner or the Special Deputy Commissioner as the case may be. Once a land is converted, its primary character is changed from agricultural to non- agricultural and the land permanently loses its agricultural character.

2) The application for conversion from agricultural to non-agricultural residential uses and purposes cannot be refused by the Special Deputy Commissioner if the land use earmarked in the master plan is residential

3) you should insist that land be converted to residential use abd then only purchase flat

Ajay Sethi
Advocate, Mumbai
87975 Answers
6207 Consultations

5.0 on 5.0

conversion of agricultural land to non-agricultural uses and purposes is carried out under the provisions of Section 95 of the Karnataka Land Revenue Act, 1964, by the Deputy Commissioner or the Special Deputy Commissioner as the case may be. Once a land is converted, its primary character is changed from agricultural to non- agricultural and the land permanently loses its agricultural character.

2) The application for conversion from agricultural to non-agricultural residential uses and purposes cannot be refused by the Special Deputy Commissioner if the land use earmarked in the master plan is residential

3) you should insist that land be converted to residential use abd then only purchase flat

Ajay Sethi
Advocate, Mumbai
87975 Answers
6207 Consultations

5.0 on 5.0

Hi,

You are suggested to press the owner for applying for conversion.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

You don’t have clear and marketable title to the property if DC conversion is not done

2) it is true that SC has stayed the Akrama scheme

3) the SC has granted interim protection that no applications under the scheme shall be processed and thus granting a stay over the scheme.

4) SC has refused to expedite hearing of SLP

Ajay Sethi
Advocate, Mumbai
87975 Answers
6207 Consultations

5.0 on 5.0

The title will be market able only.problem will be the civil authorities can mark your construction as unauthorized and can demolish and put penalty on you.

The Supreme Court has put on hold the Karnataka government's Akarma-Sakarama Scheme, under which authorities were planning to regularise illigal constructions across the state.

So the scheme is on stay and matter is sub judice in supreme Court so you should be.eally cautious while buying as supreme court can give an adverse order and the construction can be made illegal.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

You can regularly check the status of said petition in supreme court by check case status on supreme.court website.Select Case Type as “Special Leave Petition (Civil)” and enter number as 956 and year as 2017 and click on Submit. You will be shown the latest case status of this Akrama Sakrama Scheme.

As per latest order 29/01/2018 the stay on scheme is not still vacated and is further listed on 23 march 2018.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

The status of Akrama Sakrama is as follows before Hon'ble Supreme Court:

================================================================================

Jan 14, 2017 - AKRAMA-SAKRAMA ON HOLD, SC STAYS SCHEME

================================================================================

The Bengaluru-based NBF had filed the petition on Wednesday and hearing the petition, the SC refused to expedite the hearings as pleaded by the BBMP and state government. Aimed at regularising unauthorised buildings across IT city, the Karnataka government had thought of Akrama-Sakrama several years ago. However, the project hit a roadblock for various reasons. Following the Karnataka HC ruling recently, the state government had announced that it will soon notify the scheme and invite applications from property owners for regularisation of illegal constructions.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You please cross check with BBMP Officer is it true that permission is not needed from DC conversion because of Akrama Sakrama which is on hold issue.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

In case, a person wishes to use its land for non-agricultural purposes like residential, commercial, industrial, etc. then legal permission must be obtained by paying a nominal fee to the District Commissioner. Hence, the process is often referred to as DC Conversion.

The process includes obtaining No Objection Certificate from the Town Planning Authority under Section 95 of the Karnataka Land Revenue Act. 1964.

The Deputy Commissioner is the issuing authority for Land Reforms Tenanted (LRT) lands.

Tahsildar is the issuing authority for Patta Land.

If the DC conversion has not been obtained, then the house property built on this B khatha land may be demolished.

This danger is not there in A khatha land

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

f assuming i purchase the property would i be holding a marketable title on the apartment.Will there be any issues in registering the property to my name since DC conversion is not done.What is the risk?

If the land under consideration is agricultural and if you intend to develop the land for residential, commercial, or industrial use, it has to be converted to non-agricultural land and a non-agriculture order has to be obtained from the collector of the district where the property is located. Along with this, you need to take the latest receipts evidencing the payment of non-agriculture tax. In cases where the conversion from agricultural use to non agriculture use is not done within the stipulated period, there should be an order from the authority concerned extending the period.

If the same is not obtained then it will be illegal and appropriate legal steps would be initiated.

Owner has paid a betterment fee of Rs 54/sft (a general purpose receipt para 22(1) issued for the same by BBMP) in 2014. I am not sure what was this betterment charges made for.

Also the owner says DC conversion cannot be done at this moment since it comes under the provision of Akrama Sakrama which is on hold .Is that true?

it is not that the DC conversion cannot be made now, you can approach the revenue department about this in order to avoid future problems in this regard.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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