Property transactions may be hit by State diktat

GPs told to issue forms 9 and 11 for genuine properties only

January 16, 2013 12:28 pm | Updated June 12, 2016 11:19 pm IST - BANGALORE

Transactions related to residential sites, particularly around Bangalore, are likely to be affected with the State government issuing direction to gram panchayats to issue tax assessment register extract (Form 9) and tax demand register extract (Form 11) only in case of genuine properties.

These two extracts are mandatorily sought for by sub-registrars, among other documents, for registration of new as well as old residential sites.

Sources in the Registration Department told The Hindu that they had no mechanism to verify the genuineness of these forms and had to go by them if they had the signature and seal of the panchayat authorities concerned.

They said that more than 60 per cent of residential properties in cities such as Bangalore fell under the unauthorised category, and transactions related to these projects would be affected following the government direction. There are no specific guidelines for the registering authorities as to the requirements for registration or for the public as to what kinds of properties could safely be bought, sources said.

Circular

The Department of Rural Development and Panchayat Raj, in its January 4 circular, noted that despite repeated directions, panchayats were issuing Form 9 and Form 11, facilitating registration of properties at the offices of sub-registrars. While the panchayats had issued the forms, no entries had been made in the registers at the offices concerned, it noted.

The direction has been issued to prevent illegal residential layouts from mushrooming and prohibit panchayats from sanctioning building plans and layout plans in violation of land revenue laws governing formation of residential sites and layouts.

The Karnataka High Court, in July last year, based on a public interest litigation petition, directed the government to devise a mechanism to prevent illegal layouts from being formed. The government constituted a technical committee for the purpose and selected 20 panchayats in Bangalore urban and rural districts on a pilot basis to implement online issue of forms 9 and 11.

Three categories

Even as the committee was formulating guidelines for the issue of these forms, the department found that illegal tax extracts continued to be issued by different panchayats.

Pending introduction of the online issue of forms, the circular made it clear to panchayats that forms 9 and 11 could be issued to only three categories of properties: “gramathana” properties situated within the original/old jurisdiction of the panchayats in conformity with the rough sketch provided by the tahsildar concerned; sites formed under Basava, Ambedkar and Indira housing schemes; and properties, including agricultural land, that have been converted for non-agricultural purposes and whose layout plans have been approved by the competent planning authority of the Urban Development Department.

Gram panchayats should not issue Form 9 if the property is found to be unauthorised. If buildings on such properties are provided civic amenities by the panchayat, only Form 11 should be issued. The form should carry a statement that the tax collection does not offer any proprietary right to the owner.

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