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Submiting Annual affidavits mandatory for owners of high-rises

Tuesday, March 2nd, 2010

Last week’s blaze in Carlton Towers Bangalore has taught many lessons not just for the BBMP but all other departments.The State Government is now planning to make it mandatory for owners of high-rises to submit annual affidavits to the Bruhat Bangalore Mahanagara Palike (BBMP) certifying that all safety mechanisms are in place.

“Everyone knows that the building owner tries to comply with all norms before obtaining an occupancy certificate from the Palike. But the problem starts when violations take place after the construction,” Said A. Ravindra, Adviser to Chief Minister (Urban Affairs).

“Everyone talks about prevention and precautions only after the incident. We should plan something concrete to ensure that such tragedies do not recur. We are trying to fix the responsibility of ensuring safety mechanisms on both the owner and the occupants,” he added.

Apart from periodic inspections to check post-construction violations, it is also important for a coordinated effort from all departments to ensure that all safety aspects and precautions to prevent accidents are in place.

Reference:

The Hindu

Get ready to pay the betterment charges from June

Wednesday, February 17th, 2010

The BBMP is planning to restart collecting betterment charges, which was stopped five years ago. To bail out the BBMP from the financial crunch, the government planned to bring the Sakrama scheme, which was turned down by Governor Hansraj Bhardwaj. Now the BBMP has recommended the collection of development fees from those who live in illegal layouts and want development activities in their areas.

There are around five lakh properties in the City which are illegal and have not paid betterment charges. The BBMP started working on this idea a few months ago and formed a committee led by the Palike’s zonal commissioners, chief engineers, finance and revenue officials.

According to the Palike sources, the BBMP has proposed to charge Rs 1.2 lakh for a 2,400 square feet site, Rs 60,000 for a 1,200 square feet site and Rs 30,000 for the 600 square feet site.

Source: Deccan Herald

BBMP to Issue notice to defaulting property owners for 2008-09 and 2009-10

Tuesday, February 9th, 2010

According to an estimate, nearly 2.5 lakh property owners have not paid their property tax for 2008-09 and 2009-10. Now, the civic authority plans to do a door-to-door survey to issue notices to the defaulting property owners and make them pay the dues.The demand notice will give them 15 days time to make the payments with two per cent penalty.

“Our officials have been visiting all these buildings and issuing notices to the occupants, irrespective of whether they are the owners or not,” said an official. BBMP expects to meet the shortfall of Rs 400 crore in the two months time.

Despite issue of notices,many of property owners has not paid property tax 2008-09 & 2009-10 under SAS.If the property tax for 2008-09 has been paid, property owners can avail the facility of online paying for year 2009-10 by using Visa/Mastercard on BBMP’s website.

The property owners without Occupancy Certificate can pay property tax under Self Assessment Scheme (SAS) with their title deed (sale deed).The property will be registered in BBMP’s B-Register until regularization of property.The property owners cannot file self assessment declaration once assessment order is issued. BBMP requests property owners co-operation during inspection and assessement by BBMP officials.

Last chance for defaulters

  • For payment made after 30th November 2009, an interest of 2% per month will be levied.
  • Property owners paid property tax for 2008-09 can avail the facility of online paying for the year 2009-10 by using Visa/Mastercard on BBMP’s website.
  • The property owners without Occupancy Certificate can pay property tax under Self Assessment Scheme (SAS) with their title deed (sale deed).
  • The demand notice will give property owners 15 days time to make the payments with two per cent penalty.
  • Further action will be taken against them as per the provisions, if defaulters do not pay their dues even after receiving demand notices.
  • Log on www.bbmp.gov.in or your nearest Help center for more details.

Akrama-Sakrama Regularization Scheme May Take another Six Months

Monday, January 18th, 2010

with the Governor, H.R.Bhardwaj, suggesting a thorough discussion on the issue on the floor of the Legislature, the hopes and aspirations of a large number of Bangaloreans to utilize the Akrama-Sakrama scheme and thus legalize their dwelling unit continues to remain a distant dream.

The much-touted scheme of the ruling BJP aimed at pleasing Bangaloreans has thus hit a roadblock right away with the Opposition parties keen on a full-fledged discussion on the subject which is likely only in the budget session of the State Legislature in March. Sources in the two main Opposition parties in the two Houses of the Karnataka Legislature, the Congress and the Janata Dal (Secular), told The Hindu that they are happy with the decision of the Governor to refrain from promulgating an ordinance.

“In 2004, the Governor T N Chaturvedi returned the ordinance with this message and then the government took three years to rectify and following objections the law was passed. It was also challenged in the Karnataka High Court which had stayed it. So how do you expect me to bypass both the legislature and judiciary?” asked Governor, H.R.Bhardwaj.

“It is an important subject which involves the lives of several lakhs of people. There has to be a full-fledged discussion on the Karnataka Town Planning (amendment) Bill.”

The two main Opposition parties in the two Houses were not per se against the Akrama-Sakrama scheme but were keen on a detailed discussion. It should be ensured that the scheme is only for the benefit of the common people and not for safeguard the interests of the real estate developers or commercial builders who have indulged in gross violations of building bye-laws.

The number of unauthorized constructions in the State has swelled with every passing year and what was four lakh when the regularization scheme was first proposed in 2004 has now touched nearly 13 lakh of which 10 lakh is in Bangalore alone.

Given the nature of the reply given by the Governor to the proposal of the State Cabinet to promulgate an ordinance, the regularization scheme is expected to be implemented well after the elections to the council of the Bruhat Bangalore Mahanagara Palike scheduled to be gone through on February 21. People will, however, have a year’s time to apply for regularization from the date of commencement of the process, although the cut-off date for regularisation has been fixed — December 3, 2009 — the date on which the State Cabinet approved the scheme.

Link to Refer:
The Hindu

A huge rush at the BBMP property tax collection centres

Monday, November 30th, 2009

BBMP property tax kiosks had a busy day on Sunday, the last date for paying the second installment of property tax for 2009-10 without penalty. There was a huge rush at the Bruhat Bangalore Mahanagara Palike (BBMP) property tax collection centers. “Our online property tax collections have touched Rs18crore. The online collection on Sunday alone stood at Rs35 lakh,” a senior BBMP official said.

Devendrappa, assistant revenue officer at the Mayo Hall BBMP office, said, “About Rs75 lakh was collected at our office on Sunday alone. In the three wards of Neelasandra, Shantinagar and Richmond Town that come under our jurisdiction, there are 20,000 property holders and 75% of them have paid the property tax. “Notices are being issued to 6,000 defaulting property holders. The defaulters will now have to pay the property tax along with a 2% monthly penalty,” he said.

There was huge rush at the property tax collection centers on Sunday, raising the levy collection for the year to Rs500 crore.The online collection on Sunday alone stood at Rs35 lakh.The defaulters will now have to pay the property tax along with a 2% monthly penalty.

Reference:

bbmp property tax kiosks had a busy day

Hundreds Of Property Owners Hounded By BBMP Despite Having Paid Tax

Tuesday, November 17th, 2009

BBMP has sent nearly 2 lakh notices over the past 10 days. May 30, 2009, was the last date to pay the second half installment without penalty for 2008-09. Technically, the BBMP has powers to issue notices from September. However, the process was delayed till the compilation was complete.

In its drive to catch errant taxpayers for the previous block period (2008-09), the Palike has surprisingly been snaring a few regulars. This has shocked both residential and commercial property owners. Venkatesh, staying in an apartment on Sarjapur Road who promptly paid tax for both block periods within the rebate period, was shocked when he received the notice. It said the BBMP is yet to receive tax on his property for the previous year.

BBMP revenue officials, who confirmed the mistakes had indeed happened, said it could be in cases where people paid tax on the cut-off date or later.  “We admit it’s a mistake but you needn’t panic if you have the receipt. You must produce it and ignore the notice,’’ a BBMP official said.

According to BBMP records, only 7.63 lakh property owners of the overall 20 lakh properties in Bangalore have paid tax for 2008-09. This includes 2.6 lakh owners in core areas which have 6.9 lakh properties. A majority of residential property owners in the newly added areas are yet to enter the tax bracket for the previous block period. All this when the November 30 deadline for payment of second-half instalment for the current block period is not too far away.

Reference:

Times of India

BWSSB adopts new technique to replace old pipelines

Tuesday, October 20th, 2009

Digging the roads and obstructing traffic for replacement of old pipelines will soon be a thing of past when BWSSB adopts the new ‘pipe blast technique’ and ‘trenchless technique’. A pilot project to assess the economic feasibility and adaptability of the techniques is being carried out near Madhavan Park in Jayanagar, where Bruhat Bengaluru Mahanagara Palike (BBMP) is replacing 366 metres of pipeline. A Mumbai-based private construction company is laying the pipeline at the cost of Rs 25 lakh.

Under the new ‘pipe blast technique’,A pit, two feet wide and four feet long is dug near a manhole the pipeline runs through. A compressor inserted in the pit is used to blast the existing pipeline up to a length of 100 metres.The debris is cleared off from the next manhole with the help of a metal chain.

This paves the way for inserting a new pipeline, which can even be of a greater diameter. The metal chain has a sensor, which alerts the diameter if some of the rubble is left inside. The ducts that were connected to the old pipelines are reconnected to the new pipeline through a sensor-guided process.If the sensor-guided process turns failure, parallel pipelines are laid from the consumers’ buildings with the help of ‘trenchless technique’.

If this experiment succeeds, BWSSB will adopt it to lay pipelines in most of the busy roads.This is a time-saving technique and need not required to dig the road for replacement of old pipelines.

Reference:

BWSSB trick in the pipeline

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.

Property Registration Is Getting Cheaper

Monday, May 25th, 2009

Stamp duty for property registration was reduced from 7.5% to 6% and the first-sale flat was made this benefit available. Now overall registration will go down, government will reduce cess and surcharge.



The notification will be issued next couple of days and this revised levy will be in effect from June. The notification will also include new flat rate of Rs 1000 for stamp duty and Rs 500 for registration of documents registered as gift deed.

From the June, property buyers in urban areas like BBMP, corporation and urban local bodies will pay 7.72% towards property registration and buyers in rural areas such as Taluk or village panchayats, agricultural lands will pay 7.78%.

A certain percentage of stamp duty is charged towards surcharge and infrastructure cess. With the reducing of stamp duty these rates will also come down. If a buyer is paying Rs 94,000 for urban property valued at Rs 10 lakhs, he will pay Rs 60,000 towards stamp duty, Rs 6000 towards infrastructure cess. From June onwards surcharge for rural areas will be only Rs 1,800 and Rs 1,200 for urban areas. Registration fee will be upwards of Rs 10,000 Levy for total registration will be Rs 77,200 for urban and Rs 77, 800 for rural.

Government amended the Karnataka stamp Act 1957 and brought “parents” under the “family” definition in the Act. Gift deed among family would attract just Rs 1,000 as stamp duty irrespective of property value and flat registration fee of only Rs 500.

Links:

TOI: Property registration set to get cheaper