With the ‘Akrama-Sakrama’ coming to the rescue of violations in buildings and providing clear marketability, is it going to have a steep effect on property prices? “There would certainly be a 30-40 per cent correction depending on the location with respect to buildings that have been regularised,” says Shrinivas Rao of Vestian Global. Deviations mean “something constructed that does not adhere to what was sanctioned.” This is ‘corrected’ officially by paying a fee (sakrama) for the violations (akrama).”
Mr. Rao explains that the non-compliance factor could become especially true with layouts and apartments or individual houses where there hasn’t been a BDA/BBMP sanction, with Occupation Certificate not issued. Although the local board panchayats have issued khatas and approved plans for construction, today “the construction has to be regularised” by the present local body.
“The rates, once regularised, would be corrected to gain in value depending on the location,” he says.
“Take the case of a well-known apartment on Old Airport Road that had people buying with cash only, as no home loans were being disbursed for the purchase,” explains Mr. Rao. “In the 1990s when Old Airport Road wasn’t in the purview of the BBMP, and the authority sanctioning approval was the HAL Sanitary Board, it didn’t gain much price, and until recently it fetched Rs. 4,500 per sq. ft, when neighbouring Indiranagar had prices upwards of Rs. 6,500 per sq. ft. Now, with regularisations set to be in place, the same apartment can demand its legitimate price,” says Mr. Rao.
Bangalore has seen a haphazard growth in several pockets with no rules and regulations. “This is mainly due to the rampant growth of the IT destinations with no statutory body regulations in place. Regularising the deviations would benefit the projects that have been sold earlier with these irregularities. Corrections will bring in a marketable title and a better value to property,” says Mr. Rao.
