CAG RAPS BDA ON BUILDING PLAN VIOLATION – CAG REPORT – A Press Report


CAG: BDA overlooked change of land-use plan by developer

The CAG statement comes in the backdrop of BDA’s lapses in sanctioning building plans for Prestige Augusta Golf Village project in Vaderahalli village, east Bengaluru, which involves development of 460 luxury villas and twin houses spread over 104 acres designed around a nine-hole golf course. In its second instalment on the general and social sectors, the CAG report said the project, initiated in 2013, is facing demolition owing to the BDA’s failure to consider the general power of attorney (GPA) before sanctioning the detailed building plan that resulted in deviation from the approved development plan.
The Comptroller and Auditor General (CAG) has slammed the Bangalore Development Authority for its failure to monitor compliance with building bylaws, especially involving large projects, and said it has resulted in the exploitation of unwary buyers. The audit report placed in the assembly on Monday said the BDA must continuously ensure bylaws are followed. “Failure to do so may result in severe losses to the buyers since BDA may subsequently deny occupancy certificates or demolish the building as those would be illegal structures,” it added.

According to the report, the BDA, in December 2016, issued notice to Prestige Developers seeking reasons for contravening the scope of the development plan approved by the authority. Since the reply was unsatisfactory, it directed the builder to stop work and remove the structure constructed while recallig the sanctioned plan. By then, the developer had developed, ad vertised and sold some residential units in the agricultural land zone to prospective owners violating the norms stipulated in the zoning regulations of the Revised Master Plan 2015 for Bengaluru. As per the regulations, if the land is more than 40 hectares, golf course along with ancillary units like administrative office, guest rooms guest houses and dining facilities may be permitted for housing the staff of government, semi-government, public and private limited for short duration.

The back story

In 2012, owners of Survey Nos 27 to 42 and 56 of Vaderahalli village applied for conversion of land use from agricultural to nonagricultural for the development of golf course and ancillary units. The then deputy commissioner, Bengaluru Rural district, gave the approval on the condition that the land would be used for the intended purpose and construction would be undertaken after obtaining approval from zonal development authorities.

The owners applied to the BDA for sanction of non-residential development plan and it was approved on January 21, 2013 for a golf course and ancillary units. The report said that BDA issued the work order on June 28, 2013 after the land owner entered into a development agreement with Prestige Developers to develop the property and for its sale after executing a GPA in favour of the developer , empowering him to sell, lease, mortgage, exchange or otherwise 67% divided and or undivided share in the land.

“The GPA was submitted along with other docu ments to BDA prior to seeking sanction for the detailed building plan. Despite possessing the GPA, which altered the scope of the development plan sanctioned, BDA sanctioned the detailed building plan for construction of golf course with 460 guest houses on remittance of prescribed fees and charges,” the report said.

 

 

GENERAL POWER OF ATTORNEY OR SPECIAL POWER OF ATTORNEY – IN THE COURSE OF SALE OF PROPERTY


The GPA or SPA must be registered with the jurisdictional sub-registrar and there is NO IRREVOCABLE POWER OF ATTORNEY, unless consideration or any amount paid to the executant or the principle by the agent or the attorney holder.

The GPA cannot be revoked or withdrawn or cancelled without the repayment of the amount received by the executant or the principle.

The registered GPA can be withdrawn or cancelled or revoked only by the DEED OF REVOCATION or by the decree of a court or by the consent of both the parties.

If the GPA is executed abroad must be validated or stamped by the concerned District Registrars in India, to execute the sale deed of a property.

Caution must be exercised, while, scrutinising the documents regarding the executant, date of execution, age of the parties, signature of the parties and the flow of titles.  If the executant of the principle has expired, then the GPA is not valid or becomes unenforceable.

 

492 HOUSING SOCIETY ALLOTTEES LAND UP IN MESS !!!! THE KARNATAKA STATE KHADI GRAMODYOGA WORKER`S HOUSE BUILDING CO-OPERATIVE SOCIETY`S ILLEGAL AND UNAUTHORISED LAYOUT BRINGS THEM TO HELL (BDA)


The Karnataka State Khadi Gramodyoga Worker`s House Building CO-Operative Soceity 492 site allottees are in trouble !

ANOTHER GIFT FROM BDA!

The housing society forms a layout (without approval from the planning authority-Illegal and unauthorized layout) and allots it to its members, in the meanwhile, the notorious BDA notifies the 19 acre land in Jakkur Village for Arkavathy Layout and as per the SC direction and under the re-do scheme the BDA denotifies or leaves the land and the land revert to the farmers in whose name the revenue record stands.

      The allottees had paid Rs50,000/- to Rs60,000/- (plus etc) and the sale deeds, it is learnt, had been registered by GPA holders and without the consent and confirmation from the sale agreement holders and the land lords, now these allottees are in serious trouble.

A civil suit in the making and may run for years.

GENERAL POWER OF ATTORNEY – PROPERTY DEALING – SUPREME COURT OBSERVATION – TAKE UTMOST CARE!


The Supreme Court observation on the sale of properties on General Power of Attorney:

The SC has clarified that it was only stating the well-settled legal position in this connection and not laying down a new law, the order was necessary because a good proportion of property sales have been affected through the GPA route of late.  The Supreme Court’s ruling on Wednesday that transfer through general power of attorney (GPA) cannot give ownership title to the buyer will address a long-pending anomaly as far as property transactions in this country are concerned.

This has led to evasion of stamp duty and registration charges, causing losses to the public exchequer. It also has a great role to play in the circulation of black money in the real estate sector, which in turn has become a major avenue for investment and creation of unaccounted wealth.

The transfer of property through the GPA route has often seen genuine buyers being cheated since the same property can be sold to several parties, resulting in litigation, and, sometimes, crime.

ATTESTATION OF A DOCUMENT OR DEED – HOW IMPORTANT IS IT?


If a deed or document is to be attested usually by two or more witnesses, it must be very clear from the wordings or the attendant circumstances that the Attestors have signed the deed or document as witnesses. 

 Not just a formality: The Attestor attesting witness must sign the deed or document concerned in the presence of the Executant.

 One of the factors which is not considered to be important in the course of execution and registration of deeds is attestation of deeds. In respect of deeds which are being registered, many parties regard this as a formality. The general approach is that any person who can sign the deed as a witness is good enough to attest the deed. However, this is an important matter and is not to be treated casually. It is desirable to have an understanding of the issues concerned.

 An Attestor is a person who has seen the deed concerned being executed. As such, a party who is executing the deed or document cannot be an Attester. A Power of Attorney holder executing the deed or document is also deemed to be a party and therefore, cannot be an Attestor in his individual capacity. In order that the attestation is proper, the Attestor attesting witness must sign the deed or document concerned in the presence of the Executant. A person who has made the deed or document, namely, the Scribe, can be a valid witness who can attest the deed or document.

 To give a clear picture, if a deed or document is to be attested usually by two or more witnesses, it must be very clear from the wordings or the attendant circumstances that the Attestors have signed the deed or document as witnesses. The witness should have put his signature for the purpose of attesting the deed or document in having seen the Executant sign the deed or must have received an acknowledgement for this purpose. Its execution should happen in the presence of the attesting witness. The purpose is to testify the signature of the Executant. As such, the Attestor must personally know the Executant whose signature he or she attests.

 Different kind

 An attestation is different from an acknowledgement. Attestation is done by a witness. An acknowledgement is done by the party concerned. You will also come across the word “Subscribe” in legal documents. Strictly speaking, the word “Subscribe” does not impute personal knowledge of the matter in consideration and is more in the nature of appending the names of signatures in a mechanical manner.

The term attested, when used in relation to a deed or document, means that the deed or document concerned isattested by two or more witnesses. Each of the witnesses should have seen the Executant sign the document. Each of them should have signed as a witness in the presence of the Executant. However, it is not necessary that the witnesses should sign in the presence of each other. No specific or particular form is prescribed for attestation.  At times, a person may sign his or her name in a deed or document for identifying an Executant. The purpose of this is only to confirm the identity and such an identifier does not become an Attestor for the execution of deed or document concerned.

The term “Sign” would generally mean affixing the signature or otherwise affixing the name or a mark to represent the name of a person. The “signing” should be such that it would bind the person concerned as relating to the aspect of signing. Even the insertion of a name, done in the manner required, may amount to signing, authentication or attestation as the case may be.

 Common errors

 One of the common errors in perception is that, when a person signs as a witness in a deed or document, he or she is taken to have consented to the transaction covered by the deed or document concerned. This is a wrong perception. Merely because the deed or document is attested or witnessed by a person, it does not mean that the person is aware of the contents of the said document. The position of the Attestor is very important. If execution of a deed or document is denied or is doubtful, or is to be proved otherwise, the evidence of the Attestor, in a Court of law or other Authoritywould be vital. If a deed or document under which a property is conveyed to you or under which you may obtain substantial benefits is called in question, and you do not know who the Attestor or witness is, imagine the circumstances that may arise. Documents for which valid attestation by two or more witnesses, is mandatory include Will and Testamentary dispositions, mortgages and Gifts of immovable property. While choosing witnesses for Wills particularly, make sure that in normal circumstances the witnesses would outlive the Testator or Testatrix or the person who makes the Will. Also such a person should be willing to prove the execution of the Will by signing necessary affidavits and if so appear in the Court and give evidence, when the Will takes effect and orders from the court are necessitated.

 Where attestation is mandatory and the execution has been denied, in order to prove that a document has been duly executed, at least one of the witnesses should be called to prove that the document has been duly executed. Such a person should provide satisfactory evidence to the effect that he or she had duly attested the deed or document concerned. He or she should also prove that the deed or document has been duly executed by the Executant.

 An illiterate can be a witness to the execution of a deed or document, provided the other requirements for a valid attestation are satisfied.

 Where the document contains several pages and the Executant has signed each page, it is sufficient if the Attestor has generally seen the execution and at least one signature is attested. In respect of documents for which attestation is mandatory, if the attestation is invalid or is not made, then the transaction or bequest as the case may be intended under the deed or document would not operate. At times, an officer, registering a deed, makes an endorsement to the effect that the Executant is personally known to the Registering Officer concerned. This does not amount toattestation.

 It is to be noted that the purposes for which a person signs the document as a witness may differ. If related to execution, the signature of the witness is to secure the attestation. If relating to presentation of the document for registration, it may be limited to identifying the Executant. Hence, attestation and identification can be made by different persons.

When you are called to witness the execution of a deed or document or when you are calling a person to be a witness for the execution of a document, think of nature and purpose. In law, nothing can be labelled as a trivial or an insignificant matter. Often, it is these very factors which may loom large. An organised approach can save lot of unnecessary hassles.

DO YOU HAVE A GENERAL POWER OF ATTORNEY FOR THE PROPERTY BOUGHT BY YOU?


DID YOU BUY A PROPERTY THROUGH GPA AND COULD NOT REGISTER IT IN YOUR NAME?

CHECK NOW- YOU HAVE TO REGISTER IT AT THE REVISED GUIDANCE VALUE! 

THE SELLERS MIGHT NOT OR MUST NOT HAVE REVOKED THE GPA EXECUTED IN YOUR FAVOUR?

OR IT IS ALWAYS SAFE TO GET IT REGISTERED FROM THE SELLERS THAN THE GPA.

GPA IS A VERY VOLATILE DOCUMENT.  IT COULD BE REVOKED BY THE PRINCIPLE AT ANY TIME.  CHECK-DOUBLE CHECK, BEFORE YOU BUY ANY PROPERTY THROUGH A GPA HOLDER OR PROPERTY REGISTERED BY USING A VALID OR INVALID GPA.