Friday 6 November 2015

REVENUE Site buyers



Agricultural lands cannot be directly used for residential purpose. They need to be converted for using them for residential purposes by paying conversion charges. The Special Deputy Commissioner is the competent authority to permit conversion of agricultural land for non-agricultural purpose. No building can be constructed on agricultural land without obtaining conversion and other approvals from the concerned authorities. Residential sites are to be formed only in the residentially converted land and such a land should be in the residential zone as per zonal regulations for getting approval for such conversion.

As per zonal regulation of Comprehensive Development Plan, the Green Belt Area is meant only for agricultural activities. Non-converted land continues to be agricultural land. There are various restrictions on sale and purchase of agricultural land. In Bangalore, only the Bangalore Development Authority (BDA) is the competent authority to approve the layout plan and to get this approval the layout should have specified road width, residential area, civic and other amenities. The Bangalore Metropolitan Regional Development Authority (BMRDA) is the competent authority to approve sites on the outskirts of Bangalore.


Middlemen and the local brokers, who have mastered the art of marketing, motivate the innocent people to buy the revenue sites keeping them in dark of the hassles involved in the purchase of revenue sites. These middlemen normally pay a nominal sum as a token advance to the landlord and a General Power of Attorney is obtained from them to deal with such properties. Thereafter, they search for the prospective Purchasers. The middle men, like double edged razors, hike the price of the land depending upon the situation while, at the same time, they do not finally settle the account of the land Owners.


In the recital of a Sale Deed, it is customary to mention how the Seller has acquired his title, interests and rights over the immovable property from origin to the end. In case of revenue sites, the brokers have devised a very ingenious method to hide this fact. They merely mention in the recital that the property is an ancestral property of the Seller. In this way the property passes on from the (General Power of Attorney) GPA Holder to the Purchaser.

There are several instances, where the land notified for acquisition and the land granted for Schedule Caste people have been converted into sites, where the Purchaser of such a site would not get any title of the property. Then the Law stipulates that certain lands, when granted to the Schedule Castes, will revert to them if purchased by others.


Generally, brokers will take GPA from the Land Owner for the entire land and register in favour of the Purchaser; Most of the revenue sites are registered on the strength of GPA. Very few people will take care to check the legality of the GPA executed by the original Vendor. Nobody bothers to find out whether the GPA is registered or not, whether the Executor of the GPA is alive or not. If the Executor of the GPA is not alive the GPA transaction is totally invalid. A joint GPA executed by two Owners becomes invalid if one of them dies.

Form 9 and Form 10

Originally, a property falling under the village Panchayath area alone has the genuine site status. Form No.10 is for a house coming under the Gramathana village Panchayath area and Form No.9 is for a vacant site coming under the Gramathana village Panchayath area. The middlemen and some of the revenue officials make bogus Forms No.9 and 10 and register immoveable properties in favour of innocent Purchasers. Earlier, when the Urban Land Ceiling Act was in force, thousands of revenue sites were registered by merely mentioning in the Sale Deed the description as one square asbestos sheet house. This was so done just to avoid application of the Urban Ceiling Act. After the Urban Land Ceiling Act was abolished the term one square asbestos sheet house was also removed from the real estate Agent's dictionary.


If the title deeds are not clear and does not establish marketable title, it is very difficult to obtain bank loans for construction by mortgaging these sites. Generally, these sites are situated on the City outskirts. There will be no proper roads, electricity or water supply. There is no scope for immediate development and after all this, if the prices of the sites appreciate over a period of several years, the original Land Owner will appear from nowhere and start cultivating the area. He will remove all the boundary stones laid by the broker. The Purchaser will then find it difficult to identify his property. In certain cases, the GPA Holder sells the same sites to several persons and collects the money from all of them. Consequently, marathon litigation awaits the Purchaser. The Laws are so complex that they give rise to multiple interpretations.

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