Archive for September, 2009

Bank loans for Sakrama penalty

Tuesday, September 29th, 2009

The BBMP has tied up with some nationalized banks to fund the regularization penalty amount with the same property as guarantee. In fact, the last time when Akrama-Sakrama was announced and BBMP started collecting applications, many owners availed of this loan. But the BBMP stopped the process midway when the scheme was delayed by the new BJP government. After realizing that the notification of rules would get delayed, BBMP passed a resolution to refund the money.

More than 3 lakh property owners in Bangalore alone will now have to plan their investment better to get a clean chit for their properties. The penalty rates, which run into thousands and lakhs of rupees, will definitely pinch the pockets of the middle class. The BBMP has tied up with some nationalized banks to meet this expenditure with bank loan.

It’s also good business for banks as a majority will apply for the loan. And for owners, the loan will not be a big burden. Also, the same customers may get back to the bank for home loans in future when they construct after the regularization. The arrangement is such that banks, after processing documents, will present a cheque directly to BBMP for the amount. The rate of interest is as per the prevailing home loan interest.

Nationalized banks to chip in for Akrama-Sakrama Loans. The rate of interest is as per the prevailing home loan interest. After processing documents and calculating regularization amount, bank will directly pay to BBMP through cheque. If regularization is rejected for that property, the cheque will be returned to the bank.

Reference:

Bank loans for penalty amount

Regularization of Unauthorized Property under Akrama-Sakrama Scheme

Thursday, September 24th, 2009

The Akrama-Sakrama Scheme, formulated during the H.D. Kumaraswamy government in 2007, could not be implemented following strong protest and severe criticism against regularizing the structures that violated the building bye-laws and the high penalty rates. The Cabinet Subcommittee, which met on Tuesday, has recommended slashing of penalty rates. The Akrama-Sakrama is expected to be ready for implementation in about a month from now, as the BBMP has to also finalize the penalties.

The Akrama-Sakrama Scheme regularize the property by imposing penalty on property that are either constructed violating building bye-law or purchased land outside the erstwhile city corporation limits. The scheme involved the payment of one time penalty by property ranging between Rs. 5,000 (for minor violations) to Rs. 2.10 lakh.

Regularization of unauthorized apartment

In case of regularizing an apartment, only the apartment owners association is authorized to apply for regularization and not individual apartment owners. If the association does not apply for regularization, then the supply of water and electricity is liable to be disconnected after issue of notice. An apartment coming up in an area allocated for parking cannot be regularized at all. If the application for regularization is not considered, then the fees will be refunded.

What Akrama-Sakrama Scheme means

If the violations in residential buildings in BBMP limits are within 25 per cent, penalty will be 6 per cent of the guidance value of that particular locality. If violations are more than 25 per cent, then penalty is 8 per cent. For commercial property violations within 25 per cent in BBMP limits, fines will be 20 per cent while for violations more than 25 per cent, fines will be 35 per cent.

Authorities cannot go above the fixed rate while collecting penalties though they can reduce it. The meeting also said violations in residential buildings should not be more than 50 per cent, while putting a cap of 25 per cent for commercial buildings. The earlier rule had considered 15 per cent and 20 per cent of the guidance value for residential building violations (within and more than 25 per cent violations), while it was 25 per cent and 40 per cent of the guidance value for commercial property violations.

Conditions for Regularization

The penalty will be based on the location of the unauthorized structure in a given zone. However, building law violations should be not more than 50 per cent for residential structures and 25 per cent for commercial buildings. Unauthorized constructions on government properties, parks and footpaths will be ineligible for regularization under the scheme. Further, people could seek regularization over a six-month period as against the earlier three-month period.

The Cabinet Subcommittee has recommended slashing of penalty rates applicable under the earlier Akrama-Sakrama Scheme by nearly 50 per cent. The Legislative Assembly recently adopted the Karnataka Land Revenue (second amendment) Bill 2009 which seeks to regularize all unauthorized layouts and housing sites developed prior to December 31, 2008.

Recommended Penalty

The penalty that the owner of a building on an unauthorized residential site measuring 20 feet by 30 feet will vary between Rs. 30,000 and Rs. 45,000 compared to the Rs. 72,000 which was fixed earlier. For 30 feet by 40 feet unauthorized site, the penalty will range between Rs. 60,000 and Rs. 90,000 compared to the Rs. 1.62 lakh fixed earlier. For a site measuring 40 feet by 60 feet, the penalty will vary between Rs. 1.80 lakh and Rs. 2.10 lakh compared to the Rs. 4.23 lakh suggested earlier. The penalties, which were earlier roughly 15 per cent of the guideline values of the properties, have now been reduced to 8 per cent.

The estimation is that there are nearly seven lakh unauthorized structures in Bangalore alone. The Akrama-Sakrama is expected to be ready for implementation in about a month from now, as the BBMP has to also finalize the penalties based on the residential and commercial zones.

Mobile Bangalore One from this November

Monday, September 21st, 2009

From November you can get facilities from your Bangalore One right at your doorstep. Bangalore One starts service in mobile vans. Besides easy payment of power and water bills, you can also get your passport made.This initiative of the state’s e-governance department is called `E-services on wheels’ or mobile Bangalore One.

Bangalore One centers will come right to your doorstep. All the facilities now available at Bangalore One will also be  available in Mobile Bangalore One. Two mobile vans with five computers each will travel in designated areas. The schedule of mobile Bangalore One will be informed in advance and they will stop for a minimum of two hours depending on the area’s need.Centers like Bangalore One will be launched in the other eight corporations soon.Tenders for the same has been called and soon will know about the private parties offering the services.

Reference

Bangalore One at your doorstep from November

Do not wait for BBMP to do your work-clean-up campaign

Monday, September 21st, 2009

More than 300 volunteers and citizens took part in a clean-up campaign launched by two non-governmental organisations, Youth for Seva and Anonymous Indian Sunday at Malleswaram, Banashankari, G.M. Palya and Vijayanagar.At Malleswaram, the volunteers marched with drums and slogans to create awareness about cleanliness.

The volunteers asked the residents to bring out garbage and showed them how to separate wet waste from dry waste.Residents came out of their houses in response to the campaign and many of them joined the volunteers to clean up the neighborhood.The volunteers explained right way for segregation of waste and disposing it.

The clean-up campaign was to create awareness about cleanliness and message for people that they should not wait for Bruhat Bangalore Mahanagara Palike (BBMP) to do everything. people’s participation is necessary if they want to see the city clean.

Reference:
Creating awareness about cleanliness

Hassle free Property Registration at Post Office

Monday, September 14th, 2009

Karnataka Stamps and Registration Department is considering over 2000 post office and equal number of public sector banks across the state for property registrations. The department has been running the pilot project for the e-stamping initiative at four sub-registrar offices in the city. Property buyers will not have to go through the hassle of paying the registration fee and stamp duty at the sub-registrar’s office from next month.

On a pilot basis, the department is planning to launch the facility in 75 post offices in Bangalore by next month. A public sector undertaking, Stock Holding Corporation of India Limited (SHCIL) would be in charge of keeping a centralized record of all e-stamping documents. E-stamping is computer based application which enables you to pay for stamp duty using electronic device.

The postal department wants to charge Rs 10 as an additional fee from customers for e-stamping denominations up to Rs 100, and Rs 15 for e-stamping denominations above Rs 100. This is in addition to 0.15 per cent commission per transaction, which post offices get from the government for the e-stamping.

The department in association with SHCIL, is implementing e-stamping to put an end to illegal benami registrations and for plugging revenue leaks. The post offices have expressed interest and are waiting for a final approval by the state finance department.

Links to Refer:

Property Registration at post office

Residential Property is good for Investment

Monday, September 14th, 2009

It is good time for investing in residential property. Localities in each zone of Bangalore are emerging as prime residential areas.

A region is good for investment with various reasons such as easy commuting to key areas in the city, good connectivity with the Outer ring road, commercial development, good social infrastructure, industrial growth etc.

Residential segments in the north and northeast Bangalore such as Hebbal, Nagavara-Outer Ring Road (ORR), Yelahanka, Sahakaranagar, Jakkur, Coffee Board Layout, HRBR and HBR Layout, Banaswadi, off Kempapura Road, Amruthahalli, Hennur Road, and Thanisandra Road are the best options for investments. Devanahalli and Yelahanka are emerging as good alternatives to set up facilities. The international airport spurred growth in the north, and many companies are shifting here Yelahanka has seen significant residential spread over the past eight years. Due to good connectivity with the Outer Ring Road, the Hebbal flyover, and the underpasses, the 18-20 km to M G Road can be easily covered. There are approximately 4,000-5,000 units under construction to be completed in two years’ time here.

Major demand for housing in south Bangalore comes from the IT/ITeS segment. The completion of the flyover from Central Silk Board to Hosur Road will boost residential development along this stretch through smooth connectivity. Koramangala, Madivala, BTM Layout, HSR Layout to Sarjapur-Outer Ring Road, and Kanakpura Road up to Metro in the south-east and in South Bangalore, areas from JP Nagar to Bannerghatta Park, including Vijaya Bank Colony, Meenakshi Temple belt are good for investments.

In the east, Marathahalli, Brookefields, and Whitefield are witnessing residential development. The easy commute from the east to the international airport through the Outer Ring Road and the signal-free junctions will see the emergence of the east and north as major residential and commercial hubs.

In the west, The Vijayanagar belt, Nagarbhavi, Bangalore University belt up to Rajarajeshwarinagar and Kengeri satellite town, are emerging as good places to investment. There is good social infrastructure with a host of educational institutions and hospitals. Jalahalli and Peenya have the potential for residential development since there will always be an inflow of workforce looking for homes nearby due to locality close to industrial areas.

Outer Ring Road Belt Good for Investment

Thursday, September 3rd, 2009

Demand and price rise for properties in the outer ring road belts. The IT boom accompanied demand for the property in localities close to areas where IT development was happening. The capital appreciation seen in the IT belts over the last two years was around 25-30 percent.

IT Belts in Bangalore city are Whitefield, Electronic City, Outer Ring Road (from Marathahalli towards Old Madras Road), parts of the CBD, and Bellary Road (towards Hebbal). Whitefield and Outer Ring Road (Marathalli-Sarjapur stretch) are the key IT belts in the city that have witnessed significant commercial development in the last three to four years.

Nowadays, investors who want to invest in commercial spaces are bringing in lesser capital, pooling it into a large facility and leasing it out to quality tenants. North Bangalore and areas in close proximity to Hebbal are the emerging micro markets with potential for future commercial development over three to five years. This is largely due to the improved connectivity as well as potential for development of social infrastructure and residential development.

When it comes to investing in an IT belt, a leased commercial IT space garners a yield of around 9-12 percent. This acts as a hedge against inflation. The capital appreciation seen in the IT belts over the last two years was around 25-30 percent. A rental return of 9-12 percent can be expected depending on the quantum of investment.

The Whitefield and Sarjapur-Outer Ring Road belts have been the fastest-growing belts in the last few years. These are the two belts with the highest IT development in Bangalore with Outer Ring Road having around 11 million sqft of completed leased space and Whitefield having around 13.2 million sqft of completed IT stock. Both areas are well-connected to the international airport through existing or planned civic infrastructure initiatives. The planned Peripheral Ring Road (PRR) will improve connectivity from Whitefield to the airport.
A long-term investment in this belt will yield high rental returns and capital appreciation, and acts as a hedge against inflation.


Whitefield has seen residential growth in Varthur, Brookefields, Mahadevapura, and in localities around Whitefield. The Outer Ring Road belt has both residential and commercial development with multi-tenanted facilities as well as high-end apartments. Southeast Bangalore is an employee catchment area close to the Sarjapur-Marathahalli- Outer Ring Road belt. The largest increase in the gross rental yield in the city was seen in Whitefield - from 11.6 percent in the fourth quarter last year to 12.4 percent in the first quarter of this year. 

BBMP hopes to collect at least Rs. 800 cr. this year

Tuesday, September 1st, 2009

According to a revenue official, the last date to pay the first installment of property tax for the financial year 2009-10 ended on Sunday. From beginning of financial year to  August 30, Bruhat Bangalore Mahanagara Palike (BBMP) has collected approximately Rs. 380 crore as property tax from around 4.3 lakh residents of the city.

Last year, around 7.5 lakh property owners paid tax to the tune of Rs. 748 crore to the civic authority. The official said property owners had just two months’ time to pay the property tax under self-assessment scheme last year. This year however, they have been given abundant time and they can pay the tax, albeit with penalty, till October-end.

The official said that the civic authority hoped to collect at least Rs. 800 crore as property tax this year. BBMP targets for 1000 crore and to ensure 100 per cent payment, BBMP will use Geographical Information System, that enables to scrutinize the details such as built-up area, number of floors and usage of the property.

While four lakh owners filed their tax returns at various centers identified by the BBMP, more than 30,000 property owners chose to go online. The official also said that the BBMP had received a lot of complaints from property owners last year about the cumbersome procedure involved in filing the tax returns.

Tax Calendar
August 30- Last date for payment of property tax for full year or First half-year without penal interest.

November 30- Last date for payment of property tax for second half-year without penal interest.