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  • Iblur Lake Demolition case: Tips to avoid falling prey to illegal construction

Iblur Lake Demolition case: Tips to avoid falling prey to illegal construction

nikunj.j

“Apna ghar” is a dream nurtured by every individual once he starts earning. After accumulating significant bank balance, one decides to take a plunge in the property market.

Following rigorous online search and numerous site visits, one finally takes that bold step. What if after a decade you wake up to the sound of bulldozers and find the compound wall of the apartment broken down? Surprised? Well, this is a true story of the residents of Sobha Garnet, who witnessed a similar situation almost after staying in the complex for more than ten years.

Located on the Outer Ring Road (ORR), the luxury project comprises total of 87 units. According to officials, Sobha Garnet, a project by Bangalore-based realty giant Sobha Developers, stands allegedly on the encroached land of Iblur Lake. Thus, as part of the demolition drive conducted by the Bruhat Bengaluru Mahanagara Palike (BBMP), amidst several unprecedented proceedings, the compound wall of the complex was completely demolished.

What came as a shock was that the residents of the complex have an A Khata. Yes, it has raised eyebrows as to why was the building given this status if it was not legal. Before going further, let’s understand what A Khata is.

As per Girish KS Local Director, strategic consulting, JLL India, “there is lot of misconception regarding khata. It is just an account of assessment of property tax and thus does not confer ownership of the property. In fact, in Bangalore, there are many illegal layouts and illegal developments (on lands of agricultural use).”

So, why didn’t the BBMP raise the alarm on time?

“Well, obviously the authorities did not want to lose out on property tax as these properties were using civic services,” adds KS.

This is not the first time when such incident has come to light. Recently, the decades-old Campa Cola society in Worli, Mumbai was also demolished by the city authorities. So, who is at fault? The concerned civic authorities for not raising the alarm on time? Or the buyers who don’t verify all the necessary details before investing? Or the authorities who in order to fill their pockets give an A Khata even to illegal buildings? These issues which were almost passe has suddenly been reanimated into prominence. Whoever may be at fault, the home buyers always has to bear the brunt.

In order to prevent such incidents, Commonfloor presents you the checklist that can save you from getting into any such unwanted troubles.

Legal Due Diligence Report: Every buyer should ask for the legal Due Diligence Report from the developer. “Don’t forget to check if the report is prepared by a reputed law firm. A typical diligence report has a detailed section on title search, which will have the records of the historical transfer of ownership.”

“Finally, a legal due-diligence report will have an opinion on marketability of the title of the present owner (developer) as well. It is imperative to read the entire report carefully and seek a second opinion from an advocate/law firm to be convinced about the marketability of the title,” informs Girish KS.

Occupancy Certificate: Another important document is the Occupancy Certificate (OC), which is issued by the city development authorities. This certificate is only issued if the building complies with all the local rules and regulations. However, five per cent here and there is acceptable in certain cases. The OC is only issued when the project is ready for possession.

Encumbrance Certificate: But is there any checklist for the under-construction property? Yes. A document called “Encumbrance Certificate” can ensure hassle-free buying. It ensures that the concerned property has a clear title ie. it is free from all the legal burdens that is associated with a property.

No Objection Certificate: Since its always better to be safe than sorry, there is no harm in checking the No Objection Certificates (NOCs) from various departments such as environment, water, electricity, among several others.

Home Loan Route: And if you are vouching for one of the easiest way out, then take a home loan route. The bank does all the necessary checks before sanctioning the loan for any property in question. Certain banks like SBI do a thorough check before actually approving the project for bank loans. However, it is still recommended to get the documents verified by legal experts.

Following these simple steps can save you from getting into Sobha or Campa-Cola like situations, that too after a decade!

Tags : A khata Campa Cola worli Iblur Lake Bangalore Khata legal due diligence report no encumbrance certificate No-Objection Certificates occupancy certificate (OC) orr bangalore Sobha Garnet

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