ENCROACHMENT – RAJA KALUVE – LAKES – LENDERS ESCAPED


The owners who have bought the apartments and sites in and around raja kaluve and the lakes have borrowed money from BANKS.  In many cases, the banks have evaluated the projects and in some cases had issued pre approval to the projects which are under investigation and demolition.

Majority of the buyers are borrowers and if the banks had conducted due diligent enquiry, it would not be possible, legally, to the banks to finance illegal buildings with violation and deviation.  But, they overlooked and DUG THE GRAVE FOR THE BUYERS OF THE PROPERTIES.

None of the affected owners have sued or instituted legal proceedings against the banks and officials. Why?

The NOTORIOUS LENDER has obtained an AFFIDAVIT from the borrower, which contains  a declaration made by the borrower that the property titles are good and it has been constructed as per the sanctioned plan.  In the event, if there is any deviation or violation from the sanctioned building plan, the BANK RESERVES THE RIGHT TO RECALL THE LOAN and initiate appropriate proceedings against the borrower.

The borrower/owner, who has signed the loan agreement without even reading one word thinking that the SANCTION OF BANK LOAN means, perfect title.  IT IS NOT SO.

75% of the apartments, houses and sites have not been constructed or formed as per the law and as per the sanctioned plan, but HOME LOANS have been sanctioned by the BANKS.  How?

Banks have also engaged in TAX EVASION AND ARE ABETTING TAX EVASION, which is under investigation.

 

REGISTRATION OF PROPERTIES AT A VALUE LESSER THAN THE ACTUAL SALE VALUE OF THE PROPERTY TO EVADE STAMP DUTY AND INCOME TAX


A News Report of real estate transaction in Bangalore Mirror on 13-07-2016

Woman entered into a deal to sell her property, but faced trouble when buyer refused to pay the ‘remainder’ 

The High Court of Karnataka has allowed a 75-year-old property owner to initiate a cheating case against the buyers of her property who allegedly refused to pay her the amount that was negotiated for. The property was registered for a lesser amount than what was mutually agreed, as is the norm with most property registrations. But in this case, the purchaser allegedly refused to pay the ‘remaining’ amount while paying her only the amount mentioned in the sale deed.

An US national came to Bengaluru to sell her property in 2013 and entered into an agreement to sell with  for a consideration of Rs 2 crore. However, this transaction did not fructify. Later, an agent got her a deal to sell the property to one  XXXXXXXXXXXXfor Rs 6,58,20,000. However, the sale deed for registration was prepared only for Rs 4,32,20,000.

The Landlady alleges that she was not paid the difference amount and hence she refused to give up possession of her property.

She complained to the  police that she was being forced to give up possession of the property without the balance amount being paid to her. The police did not register an FIR but gave her an ‘endorsement’ that it was a civil dispute and hence she should approach the court.

Thereupon, she approached a civil court, which refused to give an injunction against the property purchasers and she claimed that she was forcibly thrown out of the property and then approached the HC for justice.

The HC noted that there was “some semblance of criminal intention on their part.” of the buyers,  It also castigated the police for not filing an FIR. “This court is unable to understand as to how the  police could refuse to register the complaint and issue such an endorsement.” The court said the case was unnecessarily being pursued in the civil court.

Relegating the case to the magistrate court  and directing the seller “to file appropriate complaint and seek appropriate direction to the jurisdictional police for investigation and registration of the complaint for the offences alleged against the defendants”, the court also allowed her to proceed against the purchasers to recover the amount due to her.

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REMARKS-

UNDERVALUING THE PROPERTY – STAMP DUTY EVASION – INCOME TAX IRREGULARITY – CAPITAL GAINS – PENAL PROCEEDINGS – REPATRIATION OF FUNDS ABROAD

Income Tax Department might step in along with the Department of Stamps and Registration to conduct an enquiry into the TAX – for the difference amount.  Amount negotiated and the Amount shown in the Sale Deed.  The difference of stamp duty + 10 times the penalty and the Income Tax + Capital Gains + Penal proceedings from the IT Investigation Wing.

If the property is bought for X price and registered it for Y price, to evade stamp duty and Income tax, both the departments will have conduct enquiry and the amount `Y` has to be assessed to tax.

The liability towards the stamp duty is the DUTY NOT PAID OR EVADED on the OTHER amount Plus 10 times the penalty and the income tax (TDS) + recovery proceedings by the IT department.


There are many financial institutions provide home loans and some of them by-pass the RBI directives and assist the buyer and seller to EVADE stamp duty.  This is not very difficult to investigate.  The actual sale agreement is for Rs.1,00,000/- and the loan sanctioned is also on the basis of the sale agreement and 75% or 80% of the value shown in the Sale Agreement.

But, the SALE DEED registered is for Rs.50,000/- by undervaluing the property and EVADE STAMP DUTY.

The penal proceedings:

STAMP DUTY HAS TO BE PAID FOR THE DIFFERENCE AMOUNT OR TAX EVADED AMOUNT OF Rs.50,000/- at the prevailing applicable rates and 10 times the penalty of the TAX EVADED AMOUNT.

If this discrepancy or illegality is brought to the notice of the RBI, the RBI might be compelled to initiate appropriate proceedings against the bank or financial institution and direct the BANK to proceed with the immediate recovery of the amount LENT to the borrower.

 

BOUGHT A SITE FROM HOUSING CO-OP SOCIETY- GET READY FOR ENQUIRY!!


READ THE LINK IN KANNADA:

A NEWS PAPER REPORT: CLICK ON THE LINK

LARGE SCALE TAX EVASION DETECTED BY THE INCOME TAX DEPARTMENT AND THE DEPARTMENT OF STAMPS AND REGISTRATION IN KARNATAKA

SITES FORMED BY HOUSING CO OP SOCIETIES AND SOLD BY THEM.

CLICK ON THE LINK DOWN:

http://www.kannadaprabha.com/top-news/%E0%B2%AE%E0%B3%81%E0%B2%A6%E0%B3%8D%E0%B2%B0%E0%B2%BE%E0%B2%82%E0%B2%95-%E0%B2%B6%E0%B3%81%E0%B2%B2%E0%B3%8D%E0%B2%95-%E0%B2%B5%E0%B2%82%E0%B2%9A%E0%B2%A8%E0%B3%86-%E0%B2%A8%E0%B2%BF%E0%B2%B0%E0%B3%8D%E0%B2%AE%E0%B2%BE%E0%B2%A3-%E0%B2%B8%E0%B2%82%E0%B2%98%E0%B2%97%E0%B2%B3-%E0%B2%A4%E0%B2%A8%E0%B2%BF%E0%B2%96%E0%B3%86/122729.html

AN EXAMPLE:

BOUGHT A SITE FROM A HOUSING CO OP SOCIETY, MEASURING 1200SQUARE FEET(30X40 FEET) AT RS1000/- PER SQUARE FEET AND REGISTERED IT FOR RS500/-  OR AT RS6,00,000/- AT GUIDANCE VALUE OR THE SR VALUE!!! PAID CASH OF RS500/- SQUARE FEET OR RS6,00,000/- IN CASH OR CHEQUE.

THE PENALTY WILL BE RS3,96,000/- ONLY.

HOME LOANS AND RBI DIRECTIVES – TAX EVASION BY THE BUYERS IS UNDER SCRUTINY


RBI HAS DIRECTED ALL THE BANKS NOT TO OVER VALUE THE PROPERTIES WHICH INCLUDES STAMP DUTY, REGISTRATION FEE, SERVICE TAX, VAT AND OTHER ADDITIONS, WHILE PROCESSING THE HOME LOANS, AS THE REGULATOR RECEIVED COMPLAINTS OF SUCH DISCREPANCIES BY SOME OF THE BANKS.

THE INCOME TAX DEPARTMENT IS EXAMINING THE HOME LOANS APPLICATIONS AND SANCTIONS AS IT IS NOTICED THAT MANY ASSESSEES HAVE FILED THE TAX RETURNS, WHICH HAVE SOME UNDISCLOSED TRANSACTIONS, TO AVOID THE PAYMENT OF TAXES.  

THE BUYERS ENTER INTO AN AGREEMENT OF SALE WITH THE BUYER FOR XXXXX PRICE AND SUBMIT THE SAME FOR HOME LOAN SANCTION AND REGISTER THE SAME PROPERTY FOR THE LESSER VALUE TO AVOID OR EVADE INCOME TAX, STAMP DUTY AND REGISTRATION FEE.  THE INCOME TAX DEPARTMENT IS COLLECTING INFORMATION OF SUCH TRANSACTIONS AND TAX EVADERS WILL BE PENALISED.  THEHOME LOAN BUYERS ENTER INTO A SALE AGREEMENT FOR THE ACTUAL VALUE OF THE  PROPERTY OR HIGHER VALUE OF THE PROPERTY TO AVAIL LOANS AND AT THE TIME OF REGISTRATION, REGISTER THE SAME FOR LESSER VALUE TO EVADE INCOME TAX, SALES TAX, SERVICE TAX, STAMP DUTY AND REGISTRATION FEE. 

 

PROPERTY BUYERS WHO HAVE AVAILED LOAN HAVE ALSO ENTERED INTO SEVERAL DUBIOUS AGREEMENTS AND THE BUILDERS COLLECT THE PAYMENT UNDER VARIOUS HEADS AND IN DIFFERENT NAMES, BUT ARE CAUGHT, AS THEY HAD ENTERED INTO THE AGREEMENT OF SALE AND THESE ARE OFFICIALS DOCUMENTS, BASED ON THESE DOCUMENTS THE LOAN IS SANCTIONED.