State Cabinet revs up Real Estate Sector

State Cabinet revs up Real Estate Sector

May 15, 2020

Approves amendment to Karnataka Town and Country Planning Act to develop Layouts in phases

Mysore/Mysuru: In a move aimed at revving up the Real Estate Sector in State, the Karnataka Cabinet on Thursday passed an amendment to Karnataka Town and Country Planning Act to grant approval of development of Layouts in different phases.

Earlier, it was mandatory for developers to complete all infrastructure and amenities in the entire Layout before releasing sites. But developers can now break up the entire Layout into three blocks of 40 per cent, 30 per cent and 30 per cent area, and complete construction of all amenities in the first block before handing over sites, and then complete the rest in the same manner. 

The earlier rule disallowed private developers from selling the sites till the work on providing amenities as per the approved plan is completed. Urban development authorities across the State, including the Mysuru Urban Development Authority (MUDA), used to release 40 per cent of the sites soon after the Layout plan is approved and the remaining 60 per cent in two instalments of 30 per cent each depending on the progress of work.

But people who purchased sites in the Private Layouts, were unable to build houses due to the absence of basic amenities such as road, electricity, drinking water, underground drainage and roadside drains. Now the rule has been made away with the amendment to Karnataka Town and Country Planning Act.

Long-standing demand

Welcoming the Government move, President of Jnanaganga Housing Co-operative Society H.V. Rajeev today told ‘Star of Mysore’ that the amendment was a long-standing demand of most Housing Co-operative Societies. “It is a boon especially for small builders as they can concentrate on completing all civic amenities in one block after collecting money in part from site-seekers and move on to the next block,” he said.  

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Observing that the Act, before amendment, enabled big builders who have vast resources to complete projects in full and sell sites and plots at fancy rates, Rajeev said that it was difficult for the common man to get sites at affordable prices.

Another developer too welcomed the Government’s decision as a good move at a time when the Real Estate Sector is facing a gloomy picture in the face of COVID-19 lockdown. “The construction industry plays a vital role in the economy providing jobs to crores of masons, plumbers, electricians, bar benders, carpenters and a host of other construction workers,” he said.

Only beneficial to developers

Former MUDA Chairman H.N. Vijay expressed some reservations about the benefits that the site buyer will gain from it. “The amendment is only beneficial to developers and Housing Societies. Developers now need not invest money for wholesome development of Layouts and instead develop in phases after collecting money from buyers. This will save them from investing huge sums of money in one go,” he said.

“But at the same time, the amendment can be disadvantageous for buyers as they will be inconvenienced if the developer fails to complete civic amenities in full, for which they have already paid,” he observed.

Srikanth Das, Proprietor of Ess and Ess Infrastructure, too welcomed the amendment saying it is a boon to both developers and site buyers. He maintained that the amendment will have a three way benefits — firstly, site-seekers getting sites quickly; secondly, developers getting the much needed time and money to complete stalled Projects and Layouts and thirdly, Government gets more revenue by way of stamp duty with site registration.


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