Nod to Akrama-Sakrama legislation: Cut-off date not yet fixed

In a move to create a stir, the Karnataka government gave its assent to the Akrama-Sakrama legislation, to regularize all the illegal constructions in the state. The Assembly gave its nod to the ordinance-replacement bill that aims to extend the cut-off date for regularizing all unauthorized constructions (like violating by-laws and floor area ratio) in urban regions.

However, the cut-off date for regularizing unauthorized constructions has not been fixed yet. The government decided to extend the cut-off date from 3rd Dec. 2009 to a new term. According to market reports, with the signing of the ordinance by the governor, the new cut-off date will be declared.

The scheme

The amendment to the revenue-land related proposals inhere with houses and layouts that have been constructed on agricultural and other lands, in the absence of required approvals and conversion of land use pattern.

Going by the rules proposed by the Akrama-Sakrama scheme, setback violations and FAR (floor area ratio) violations can be regularized up to 50% in residential units and 25% in non-residential buildings. According to market experts, Akrama-Sakrama is a golden opportunity for the violations to regularize their illegal constructions.

For all the non-residential buildings, if the encroachment does not surpass 12.5%, the regularization charges applicable will stand at 20% of the guidance value. However, for any kind of encroachment beyond 12.5 %, the penalty charged will be 35% of the guidance value.

Scheme earns revenue, helps people

With the government giving green signal to the scheme, a number of owners will be able to obtain permanent khatas for their properties. With a Khata in hand, property owners will be able to request for building plan approvals and apply for finance from banks. Furthermore, layouts which are structured in the absence of land conversion and approvals from planning authorities such as BIAAPA, BDA and BMRDA will also gain from the scheme.

In addition to the benefits proposed by the scheme, Akrama-Sakrama will be game-changer for the cash starved BBMP. With the implementation of the act, BBMP will be loaded with revenue (around Rs 500 crore) in the form of property tax. Under the scheme, BBMP will be legally entitled to acquire betterment and conversion fees from property owners for offering civic facilities such as drainage, road and sanitary.