Beware of land scams

Beware of land scams in Bangalore

Source: ChilliBreeze

Today, Bangalore is the fastest growing Asian city when it comes to commercial and residential space. But is the procedure of buying land here above board? Or is there more to it than meets the eye? What are the factors you should consider before investing in a plot? Buying land in Bangalore can generate profitable returns in the short and long term as well. Those who bought plots at throwaway prices a few years ago are earning huge returns today. However there is a constant concern about the illegal aspects of these deals. Most people are paying property taxes in the absence of a clear title. BDA’s role While private layouts are licensed by the Bangalore Development Authority (BDA), plots outside the city get a sanction from the Bangalore Metropolitan Region Development Authority (BMRDA). The BDA is required to thoroughly check before sanctioning licenses to private layouts. According to its regulations 49% of the area should be formed sites, 15% reserved for parks and playgrounds, 10% for civic amenity sites and the rest for roads, drains and other infrastructure facilities. There have been cases of developers falsely claiming that their lands have BDA approval. Recently a developer converted a park and play area into a residential locality in Indiranagar, and disappeared after selling the property. Incidents of bogus land sale are increasing as well. A property in Whitefield was sold twice. It was an easy con as the land-grabbers produced General Power of Attorney papers (GPAs) executed by a person who had died 9 years ago.

How do property owners get duped?

Many land owners especially NRIs are falling prey to the land mafia. Since many who invest here are unable to visit the site, unscrupulous real estate agents take advantage and sell it illegally at a higher price.

There are also instances where the fraudulent buyer or broker gets hold of copies of your documents and misuses them later. Some of them even change the value of the transaction.

How to prevent such fraud

There has been a demand for greater transparency in Indian real estate. The Delhi government has taken the initiative with the introduction of the Land Title Registration System to track property sales. This coding system enables online property verification and helps in preventing fraud.

The BDA has issued show cause notices to all the unauthorized layouts as per the Karnataka Town and Country Planning Act. It has also brought out a list of unauthorized layouts to caution prospective buyers.

In its effort to prevent land scams near the Bangalore international airport site, the Bangalore International Airport Area Planning Authority has set up a website – biaapa.in. This website lists out approved layouts and proposed land use.

Some key points to remember:

• Purchase the property only if the title is clear. Do not go by glossy advertisements. Look at the proven record of the developer.

• Check the mother deed and the sale deed.

• Try to get an approved layout plan. This will help in a hassle-free sale of your land in future.

• Never sign any document without completely reading and understanding it.

• It is always important to have the copies of the original title deed.

• Make sure to visit your site occasionally to check on encroachments.

• In case your presence is not possible, employ a caretaker.

Acquiring property in India is always fraught with loopholes and possible illegalities. Despite the risks, NRIs consider it a worthwhile investment. Would you consider buying property in India? Why? If you have already done so, did you face any difficulties, or was it smooth sailing?