Buy a Panchayat Raj approved Layout Flat in Bangalore
I am planning to buy a flat in Bangalore outskirt. As per builder, the lay out is approved by Panchayat Raj and is DC converted. However, it has B-Khata.
Also, Builder says, he will not be able to provide Completion Certificate (CC) and Occupancy Certificate (OC), as it is not Municipal corporation approved property, but Panchayat Raj approved one.
I am not sure if he is right about CC and OC.
The property is financed by Andhra Bank and Corporation bank.
Please suggest if it is safe to purchase this flat.
Asked in Property Law from Bangalore, Karnataka
If the land is converted from agriculture to non-agriculture residential purposes and if the layout is approved by the gram panchayath then it is safe to buy a plot or flat duly constructed on the said land. In addition to the above it is pertinent that the plan for the construction is also duly approved by the very same panchayath and the receipt for issuing the sanction for the construction is also duly approved by them.
Question of providing a Completion certificate and Occupancy certificate for building falling outside Corporation limits does not arise and is not provided for in law.
The banks which have agreed to fund the project must have a legal opinion from their empanelled advocates get it and also get an independent opinion from an advocate before proceeding with the purchase, just to be sure.
1) yiu must consult a local lawyer before you take decision to buy flat in Bangalore
2) it is always better to buy flat which is within limits of muncipal corporation and has occupation certificate issued by corporation
3) if project is approved by 2 banks they must have done due diligence before sanction of loans
4) consult a local lawyer to check whether title to land is clear and marketable and whether all approvals are in place
1. Obtain due diligence report from an independent lawyer about the said property by conducting thorough property search,
2. Panchayat does not issue CC or OC since they do not have experts to verify the construction,
3. So, get the construction checked with the sanctioned plan by a civil engineer,
4. Visit the panchayat office to ascertain if they have any complaint/grievance against the builder or not,
5. Find out whether the title of the property is registrable or not before buying it.
Whether the property is situated in urban or rural limits, the completion or occupancy certificate is essential. The builder cannot escape responsibility saying that it is panchayat approved project. The panchayat has no power to approve such projects. Only town and country planning departments can approve.
First of all title documents of B Khatha property should be properly vetted by a local lawyer and his opinion is to be sought.
The Bank may finance the property on some other basis, it is not a guarantee for obtaining CC or OC at a later stage. For obtaining OC or CC several other departments approval along with BBMP or BDA's approval is to be obtained who after inspection of its worthiness and deviations shall grant orders for OC or CC.
B Khata certificates are given to any property which does not fall under BBMP jurisdiction. Such properties are unauthorized but receive all the amenities provided by the civic agencies. B Khatas are not considered as valid Khata extracts and owners will not get the same benefits as A Khata properties.
B Khatas were traditionally issued in the following cases.
If the property is part of an unauthorized layout.
If the property is on revenue land sans DC conversion.
If a property doesn’t have a valid Occupancy Certificate.
B Khatas have been in the news recently and a judgement related to them was recently passed by the Karnataka High Court. The High Court judgement has termed the practice of issuing B Khatas illegal and ordered the BBMP to ensure that all properties are registered in the Form A Register henceforth. This would provide relief to thousands of landowners who were caught in a tussle between builders and the BBMP.
1. Having 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.
2. When BBMP came into being it found that there are illegal constructions which were enjoying civic amenities without paying taxes. 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.
Khata is an account of assessment of a property, recording details about your property such as size, location, built up area and so on for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of tax. It is required when you require a building license, trade licence or loan from banks or any other financial transactions. It is mandatory for all property owners to pay property tax, hence you need to have khata.
The Karnataka High Court has recently made it compulsory that the Bruhat Bangalore Mahanagara Palike (BBMP) cannot award 'B Khata' certificates to buildings and properties The High Court ascertains that these are just certifications for the eligibility of being assessed for property tax and are in themselves no way to be taken as proof of ownership or legality. In other words, if a property does not have an A Khata, it is illegal as per the Karnataka High Court. The High Court has ordered the BBMP to include all properties in the Form-A Register (A Khata). The ownership of a BBMP B Khata is not proof of ownership of your property and it means that it still has pending sanctions that have to be approved.
How many floors in the property?
In the case of Panchayath, they do not issue CC or OC. In present situation you have to Visit the panchayat office for checking the sanction of the building plan and check whether the building no. (Particularly your prospective flat no ) has issued by the panchayth in their register . Find out whether the builder has valid title over the property.
People with a B Khata property have to give other documents such as the title deed and all other paperwork that points to the fact that they have constructed property on non-agricultural land and with no violation of building norms and with enough space for road widening. Once an occupancy certificate is procured, then your Khata can easily be transferred to the A register.
Check the following documents :
(i) Title deed and sale deed
(ii) Copies of property tax receipts that have been paid previously
(iii) Order of conversion of the land from agricultural to non-agricultural
(iv) Proof of any improvement charges paid, if applicable,
(v) Khata extract issued by the Panchayat submitted by the developer
(vi) A blueprint showing the location of the property and dimensions and other certified specifications
(vii) The possession certificate
(viii) The occupancy certificate
Hi, panchayath has no authority to issue the layout plan and it is not valid so better you can get the legal opinion form the advocate and proceed further.
2. It is my personal opinion don't go for this kind of the property.