Buying a revenue site in a private layout - BEWARE

I have been coming across a lot of people who are  interested in investing in a revenue site. It seems to be a lucrative investment, but highly risky, if you invest in one without verifying the documents correctly, you might be landing yourself in a big mess. There is a downside to it and people who want to buy a site in a private layout need to be aware of what they are getting into before investing all their hard earned money into it.

Private layout, Revenue site and a Gramthana site

When a layout does not have its proper approvals under the relevant laws it is an unapproved layout. Sometimes the land may be converted from agricultural to non-agricultural purpose, but the approval of the planning authority may not be there, that is to say that it is an unapproved layout without a sanctioned plan for residential purposes. It is necessary that the layout plan is sanctioned by the appropriate planning authority such as the BDA or the BMRDA. Certain legal requirements under the Land Revenue Act, Land Reforms Act, The Town and Country Planning Act, BDA Act etc., need to be fulfilled for the layout to be an approved one. 

No layout can be formed on land for which notifications are issued for acquisition by the government agencies or if it is grant land belonging to the SC and ST community. Thus, a revenue site is a site that is formed on a land that has not been authorised or converted for residential purpose by the State government. 

A Gramthana site is a site within the village limits that is earmarked for residential purpose. Kanishmari numbers denote these sites. Here even though the site is located in the green belt area it does not require conversion. But it is very rare that genuine Gramthana sites are available today, most of it is carved out on the basis of fabricated documents.

Procedure to form a private layout.

1) According to the Town Planning rules, any person who wants to carve a residential layout in an agricultural piece of land has to approach the DC for the purpose of conversion of the agricultural land from agricultural to non-agricultural/residential purpose. 

2) The DC then verifies if the said land comes under the residential zone as per the Comprehensive development plan (CDP) issued by the State Town Planning authorities. 

3) On collecting the requisite fees, the DC then will issue the conversion order for using the land for residential purpose. 

4) The land owner/developer then has to approach the planning authority with the layout plan drawn by a registered engineer or architect, as per the bye-laws of the planning authority (BDA or the BMRDA, as the case may be).

5) The planning authority concerned will approve the layout and will release a list of site numbers, which can be marketed before completion of developmental works. On satisfactory completion of all development works such as laying roads, providing water, electricity and sewage connections etc., the planning authority will release the remaining sites for sale.

Problems or risks in buying a revenue site in private layouts.

1) Today, the developers are developing layouts without land conversion and without getting layout plans approved by BDA/BMRDA. Many a times it is seen that without even being empowered, such layouts have been approved by Village Panchayaths/CMCs, with layout plans, thereby permitting narrow roads and no other basic amenities being provided.

2) There are many layouts formed with fabricated conversion orders.

3) The layouts have been sold on paper even in ‘green belt' areas (area reserved for no development), land reserved for commercial/industrial purpose, land on tank bunds (which actually are owned by the government) and even the land notified for acquisition by government agencies. 

4) The purchase of such a site will not confer a good title on its owner. A village panchayat secretary, president or administrator,  is neither empowered to sanction a layout plan nor a building plan. No building can be constructed on agricultural land without obtaining the conversion order, layout plan and building sanction plan. 

5)You will also be liable to pay various statutory fees and levies which have not been paid by the developer. Unauthorised layouts are often without basic amenities and do not conform to Town planning requirements. They may lack proper roads and open spaces which should be about 50% of the total area, as stipulated by the law. These layouts will prove to be inconvenient in the long run and have little resale value.

6) If you buy a site in an unapproved layout you could face problems with regard to Khatha transfers, plan sanction etc., The construction carried out by you can also be demolished and no action can be taken against the planning authority in such a case.

Note:

Residential layouts can be formed only in lands converted for residential purpose. Such land should be in the residential zone as per the zonal regulations. It should be approved by the concerned authorities. A sanctioned plan will have a seal, date of sanction and signature of the authority granting the sanction, together with a certificate issued to that effect by the authority which approved the plan.

If you are planning to buy a site in and around Bangalore, select a layout which is either approved by BDA or BMRDA and select the site with a particular number approved for sale, as mentioned in the letter issued by BDA/BMRDA. Collect the copies of all the property documents and various approvals obtained by the developer and engage an advocate to verify the title to the property.

Authorities that approve layouts.

1) The Bangalore Development Authority (BDA) is the sole planning authority for approving layouts under its jurisdiction consisting of areas falling under erstwhile BMP (Bangalore Mahanagara Palike), seven CMCs (City Municipal Councils), one TMC (Town Municipal Council) and specified villages surrounded by CMCs. 

2) BMRDA (Bangalore Metropolitan Region Development Authority) has the authority to approve layouts outside the BDA areas and the jurisdiction extends up to 50 km (approximately) from Vidhana Soudha, as per the BMRDA Act, 1991, that is to say Bangalore Urban and Rural Districts and Malur Taluk of Kolar District excluding the areas covered by BDA, BIAAPA and other LPA's.

3) The Bangalore International Airport Area Planning Authority (BIAAPA) - for its local planning area which includes the area of the airport and its environs. 

4) The Ramanagaram - Channapatna Urban Development Authority (RCUDA) - for Ramanagaram - Channapatna local planning area.

5) Nelamangala Local Planning Authority - For Nelamangala Town & its environs.

6) Magadi Local Planning Authority - For Magadi Town & its environs.

7) Kanakapura Local Planning Authority - LPA of Kanakapura.

8) Anekal Local Planning Authority - LPA of Anekal. 

9) Bangalore Mysore Infrastructure Corridor Area Planning Authority(BMICAPA).

Documents to be verified before buying a revenue site.

A. Conversion order from DC.

B. Receipt for paid conversion amount.

C. RTC for 30 years.

D. Documents of ownership.

E. MR extract.

F. Akarbhandh/ Tippani/ Pod extract/ Survey sketch.

G. Tax paid receipt.

H. Boundary map.

I. Village map.

J. Nil tenancy certificate.

K. Approved layout plan.

L. Khatha certificate issued by relevant authority.

M. Encumbrance certificate in Form 15 and 16 for 42 years.

N. Zonal regulation map.

O. Power of attorney (if any).

P. No acquisition proceeding evidence.

As a precaution it is better to give a public notice about the purchase in the newspaper.