DEMOLITION, RECOVERY, ENCROACHMENT, A KATHA, B KATHA, E KATHA, NO KATHA ETC


WAY BACK IN 1960`S TO 1980`S, THE PROPERTY PURCHASE WAS USUALLY DONE THROUGH KNOWN PERSONS OR CHANNELS OR NEIGHBOURS AND THERE WAS NOT MUCH OF “HOME LOANS” AT BANGALORE AND DUE TO THE SUDDEN DEVELOPMENT, THE PRICES SPIRALLED AND THE TOUTS STARTED THE MISCHIEF WITH MANIPULATED-FAKE-BOGUS-WRONG REPRESENTATIONS-FACTS OF THE PROPERTY CONCEALED- TO MAKE MORE MONEY.

THE RESULT OF THIS FAKE DOCUMENTATION IS : DEMOLITION & LITIGATION.

IT IS A WELL KNOWN FACT EVEN DURING 1960`S AND 1970`S, THAT NOBODY USE TO BUILD ANYTHING NEAR THE LAKES, UNDER ELECTRICITY LINES,NEAR RAJA KALUVE AND EVEN ON GOVERNMENT PROPERTIES.

THE SPROUTING OF DEVELOPERS AND BUILDERS, LAND MAFIA, TOUTS AND FRAUDSTERS PAVED THE WAY FOR ALL THE ILLEGALITIES.

IN 2012/13, DUE TO ABNORMAL DEMAND `B`KATHA CREATED, MOST OF THE PROPERTIES UNDER THIS CATEGORY HAS ITS OWN FLAWS, THE GOVERNMENT, EVOLVED A FOOLPROOF SYSTEM TO ISSUE `E` KATHA – ELECTRONIC MODE KATHA IN FORM NO.9 AND 11A AS PER THE DIRECTIVES OF HIGH COURT, THUS PUTTING AN END TO THE AGE OLD MANUAL KATHA.

EVEN, KATHA`S ARE NOT FOOLPROOF, AS IT IS ISSUED BY THE REVENUE AUTHORITY, BY SCRUTINISING THE DOCUMENTS SUBMITTED TO THEM AND IN SOME OF THE CASES, FAKE DOCUMENTS, BOGUS DOCUMENTS, FALSE STATEMENTS, CONTENTS TWISTED DOCUMENTS, FABRICATED DOCUMENTS ARE SUBMITTED, WHICH CANNOT BE OR COULD NOT BE VERIFIED NOT AUTHENTICATED AND KATHA IS ISSUED ON THE BASIS OF MISREPRESENTATION OF FACTS.

MANY BUYERS ARE UNDER THE CONCEPT AND IMPRESSION THAT A KATHA DELIVERS THEM GOOD AND MARKETABLE TITLES. IT IS NOT SO. IT HAS TO BE EXAMINED- HOW THE KATHA IS OBTAINED? WHAT ARE THE DOCUMENTS SUBMITTED? WHETHER APPROPRIATE AND APPLICABLE TAXES, CHARGES AND LEVIES ARE PAID OR NOT? WHETHER, ALL STATUTORY REQUIREMENTS ARE COMPLIED WITH IT OR NOT?

IN A CASE, AT BELLANDUR(CLOSE TO RING ROAD), IN A TOP END APARTMENT OF A FAMOUS BUILDER, THE RESIDENTS OR THE OWNERS(PRESENT), NOW, ARE PAYING BETTERMENT CHARGES TO GET THE KATHA OF THE PROPERTIES, AS SOME OF THE BANKS ARE DEMANDING THE KATHA AND SOME ARE IN THE PROCESS OF SALES.  THEY CANNOT WAIT FOR THE BUILDER TO PAY –  ARE IN A HURRTY – FORCED TO SHELL DOWN THEIR MONEY TO GET THE KATHA.

`A` KATHA, EC, BANK LOAN, BESCOM CONNECTION, BWSSB CONNECTION,PAYMENT OF TAXES AND TOP BUILDER`S NAME OR GOODWILL DOES NOT CONFER ANY RIGHT, TITLE AND INTEREST.

SOME OF OUR READERS WERE VERY ANGRY AND VENT OUT THEIR FEELINGS AND VIEWS STATING THAT THEY HAVE REGISTERED SALE DEED, THE TITLES WERE GOOD AND  LEGAL 15 YEARS BACK AND HOW IT IS NOT LEGAL TODAY. IT WAS NEVER LEGAL. EVEN THE SUB-REGISTRAR CANNOT REGISTER SUCH PROPERTIES, WHICH ARE IN REVENUE LANDS. IT IS CRYSTAL CLEAR THAT AGRICULTURE LAND CANNOT BE BIFURCATED AND SOLD AND IT IS ILLEGAL.  EVEN THE DC CONVERTED SITE DOES NOT CONFER ANY RIGHT, TITLE AND INTEREST WITHOUT PROPER APPROVALS FROM THE CONCERNED TOWN PLANNING AUTHORITY.  THE DC CONVERSION ORDERS ISSUED WAY BACK IN 1970`S AND 1980`S HAD CONDITIONS LAID IN ITS ORDERS THAT THE PROPERTIES WHICH ARE CONVERTED MUST OBTAIN CLEARANCE AND APPROVALS FROM THE APPROPRIATE AUTHORITIES AND ONLY AFTER OBTAINING SUCH CLEARANCE AND APPROVALS, THE MARKETABLE TITLES ARE CONFERRED.  THE MOST IMPORTANT CONDITION IN EVERY ORDER IS THAT IN THE EVENT OF “NON-COMPLIANCE” OF ANY OF THE CONDITIONS WILL RESULT IN THE AUTOMATIC CANCELLATION OF DC CONVERSION ORDER AND ACTION WILL BE INITIATED TO DEMOLISH ANY BUILDINGS OR STRUCTURES WHICH HAVE COME UP ON SUCH PROPERTIES AND THE EXPENDITURE INCURRED TOWARDS SUCH DEMOLITION WILL BE RECOVERED FROM THE OWNER AS REVENUE ARREARS.  THE USE OF SUCH LAND REVERT TO THE ORIGINAL USE, IN CASE OF NON-COMPLIANCE OF ANY OF THE CONDITIONS.  THE GOVERNMENT HAS THE POWERS TO DEMOLISH SUCH STRUCTURES WITHOUT INTIMATION.

BUT, THE BUYERS IN A BID TO ACQUIRE THE PROPERTY, HAS MISREPRESENTED THE FACTS BEFORE THE SUB-REGISTRAR AND GET THE DOCUMENTS REGISTERED.  IN THE SAME MANNER, THE KATHA IS ALSO OBTAINED.

NOW THE BUYERS ASK THE QUESTION? HOW DID SUB-REGISTRAR REGISTERED THE DOCUMENT? FACTS ARE TWISTED AND MISREPRESENTED AND THE BUYER/SELLER PAID XXXXX TO THE TOUT/AGENT TO GET THE SALE DEED REGISTERED AND AGAIN GETS THE KATHA IN THE SAME MANNER, GET THE POWER AND WATER CONNECTION AND PAY THE TAXES, FINALLY, WHEN IT IS DEMOLISHED, THE PROPERTY OWNER GRUMBLES AND CRIES.  

TITLES MUST BE CLEAR WITH MARKETABLE TITLES, ALONG WITH AUTHENTIC KATHA AND ALL STATUTORY APPROVALS, LICENSES, CC,OC AND POSSESSION.

IT IS SAD TO NOTE THAT MANY POOR PEOPLE LOST THEIR HOUSES IN THE RECENT DEMOLITION, WERE COMPLAINING THAT THEY HAVE `A` OR `B` KATHA, TAX PAID RECEIPTS, BESCOM CONNECTION, BWSSB CONNECTION AND REGISTERED SALE DEED. 

IT IS VERY SAD THAT THE HOUSES OF POOR ARE DEMOLISHED AND THE RICH GO SCOT FREE WITH LITIGATION FOR COUPLE OF YEARS AND THE NOTORIOUS BUILDER WHO STOLE THE GOVERNMENT LAND AND ROAD IS HAPPILY ROAMING AROUND AND SELLING HIS PROPERTIES.

THE COMMON STATEMENT MADE BY THE TOUTS, AGENTS AND THE BUILDERS IS THAT “THERE IS 90% DEVIATION EVERYWHERE, HAS THE GOVERNMENT GOT THE GUTS TO DEMOLISH? NO CHANCE” YOU CAN HAPPILY BUY AND IF SOMETHING GOES WRONG, WE WILL BE THERE- BUT THE TRUTH IS THAT YOU(THE BUYERS) WILL NOT BE THERE.

HENCE, CONDUCT DUE DILIGENT ENQUIRY AND EXAMINATION INTO ALL THE ASPECTS AND THEN PROCEED TO BUY. NO HURRY. IF YOU HURRY, WORRY WILL TAKE OVER.

Delhi High Court Order and the RBI Directions.


RBI/ 2009-10/75
DBOD. No.DIR. (HSG). BC.08 /08.12.01/2009-10 July 1, 2009
09 Aashada , 1931 (Saka)
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Master Circular on
HOUSING FINANCE.

Clause 12 clearly directs and specifies that OCCUPANCY CERTIFICATE must be obtained from the concerned authorities. Otherwise, the home loans sanctioned MUST BE RECALLED WITH CHARGES.

12. DELHI HIGH COURT ORDER ON UNAUTHORISED CONSTRUCTION
The Monitoring Committee constituted by the Hon’ble High Court of Delhi regarding Unauthorised Construction, Misuse of Properties and Encroachment on Public Land, has issued the following directions for immediate compliance by the banks/ Financial Institutions.
A. Housing Loan for building construction
i) In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.
ii) An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executant to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.
iii) An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.
B. Housing Loan for purchase of constructed property/ built up property
i) In cases where the applicant approaches the bank/FIs for a credit facility to purchase the built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.
ii) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
13
DBOD-MC on Housing Finance-2009
C. Unauthorised colonies
No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.
D. Commercial Property
No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.

The banks have already initiated action in this regard and have given sufficient time to the borrowers to produce the statutory certificates, failure to do so, will invite, RECALL notices.