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Akrama-Sakrama one step closer to becoming a major realty

Real estate in BangaloreRegulation schemes in Bangalore always draws the attention of the home buyers, the recent one being Akrama-Sakrama. After getting delayed for 3 years in a row the government has finally given its nod to the bill with certain provisions.

The scheme offers  one-time opportunity for approximately 8 lakh buildings along with building by-law violators in the city. To add to it, the scheme also allows 6 lakh violators near the urban districts of Karnataka to regularize their construction.

In-depth overview of the scheme

With the implementation of the scheme, the government intends to procure around Rs 5000 crore revenue from the city and its adjoining centers. For commercial properties the penalty would depend on the percentage of the violations. For violation of 25% or less the fine would be 20% of the guidance value of the area whereas for violation of more than 25% the penalty would be 35% of the guidance value.

For revenue sites, the fine would range between Rs 5000- Rs 2.1 lakh. In Zone A, the maximum fine for construction on a 20 x 30 sq.ft. site is likely to be Rs 45,000 and in Zone B it is Rs 30,000. The maximum fine for building a 30×40 sq.ft. site in Zone A will be Rs 90,000 and Rs 60,000 in Zone B. The maximum penalty for building on a 40×60 sq.ft. site is around 2.1 lakh and 1.8 lakh in Zone A and B.

Reason for previous rejection of the scheme

Previously, the scheme had moral and ethical issues related to it. According to the petitioners, the proposal for the scheme is compound to 50% violations for residential buildings and 25% violation for commercial structures. On paying the penalty it would contribute to choking of cities and haphazard growth.

Violation of building by-laws

Counter to by-law stipulations which states that buildings above 15 meters must have an underground basement and a ground floor for car parking, most of the constructed buildings only have a stilt floor, six upper floors and a ground floor.

Increase in value of land makes it obvious to make the maximum use of the available plot. To curb the rising violations, BBMP should do a periodic check and make sure that there are no violations.

Correction of the violations

BBMP must make sure that all the builders must have a compulsory completion certificate from a registered supervisor, engineer, architect etc. Such a certificate must point out the degree of violation and, based on it, BBMP will accumulate the property tax at a much higher rate.

Lack of proper monitoring and unplanned growth are the main reasons for violation of the by-laws. According to the Karnataka Municipal Corporation Act 1976, the violations can be regularized by the BBMP up to 5%.

Government charge for violation

Ever since the scheme was launched the government was charging Rs 200 for 60 sq. mts. and Rs 400 per sq. mts. for properties ranging between 60 sq. mts. and 120 sq. mts. Rs 600 per sq. mts. was charged for properties beyond 120 sq. mts.

Properties ranging between 30-40 sq.ft. will have to pay a penalty of RS 48,000, while properties measuring between 40-60 sq.ft. will have to pay a fine of 1.37 lakh.

With the exercising of the scheme, Bruhat Bangalore Mahanagara Palike expects to earn a revenue around Rs 3000 crore. The release of BBMP budget 2012-13 has built in new hopes for the citizens of Bangalore.The launch of the project is not only aimed to earn revenue for various development schemes, but will also aid the government sail through the elections.

Tags : akrama-sakrama building voilators commercial properties Home buyers regulation scheme Residential buildings residential properties

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