An article about " RISK ON PURCHASING REVENUE SITES "

 RISK ON PURCHASING REVENUE Sites

Agricultural lands cannot be used for residential purpose, until such lands have been converted from agricultural to non-agricultural residential purpose. Special Deputy Commissioner is the competent authority to order for such conversion after paying requisite conversion charges. A site formed on the agricultural land, without conversion is called Revenue Sites. It is only after conversion of the agricultural land, layout can be formed. However, Layout has to be approved only by the competent authorities. BDA is the competent authority to approve layouts formed in the urban or rural areas in Bangalore, while BMRDA can approve layouts formed outskirts of Bangalore. However, to obtain approval for formation of layout, compliance of rules and regulations contemplated by BDA or BMRDA regarding road width, residential area, civic amenities, other amenities have to be fulfilled.

Zonal Regulations

As per zonal regulation of comprehensive development plan, certain extent of land will be considered as green belt area which must be used only for agricultural activities. Agricultural lands not converted continue to be an agricultural land and there are various restrictions on sale and purchase of such agricultural land.

Purchase of Revenue Site

There are many instances wherein people buy a revenue site without knowing the legal implications involved in buying such sites. The intending purchasers most commonly approach middlemen or local brokers, who, with their marketing skills persuade them to buy such revenue sites, concealing vital defects and flaws in the title of the owner. Ultimately, it is the innocent purchaser who faces the legal battles for defending their property.

Acquisition and Granted Land:

Apart from the site being formed on the agricultural land, there are several instances where the land would have been notified for acquisition by certain statutory authorities or may even be land granted for schedule caste/schedule tribe. In any such circumstances, if sites are formed on such land without obtaining any prior approval from the competent authorities, the purchaser of such a site would not get any valid title over the property. Infact, law stipulates that the lands granted to the schedule castes, will revert back to the grantee himself if purchased in violation of certain mandatory provisions envisaged under the statute.

Form 9 and Form 10

Property falling under the village Panchayath area, which has been marked as Gramathana area in the Village Map by the Survey Department and having Form No.9 and 10 is considered to have genuine site status. Form No.9 and10 is issued for the property coming under Gramathana village Panchayath area. Further, though the form nos. 9 & 10 mention the site number and area in square feet, the original records continue to identify the property by mentioning survey numbers and extent of the land in Acres and Guntas. In such case, it would be very difficult to identify the exact site, its area and boundaries and link with form no.9 & 10. Added to this, the middlemen, in connivance with some of the revenue officials have involved in creating bogus Forms No.9 and 10 and on the basis of such forms, properties are being conveyed in favour of innocent purchasers.

It is not permitted under law to form layouts and sell the sites in the agricultural land or green belt area since even after conveying such sites RTC (Record of Rights, Tenancy and Crop Inspection) reflects the name of the original landowners as the Kathedar. 

Loan facility

If the title deeds are not clear and does not establish marketable title, it is very difficult to obtain bank loans for construction by creating mortgage on such sites. Generally, these sites are situated on the city outskirts. Generally infrastructure will be very poor with no proper roads, electricity or water supply. Further, scope for improvement of infrastructure and providing civic amenities is also very less. Inspite of all these, if the purchaser buys such sites, the original landowner will appear from nowhere and start cultivating the area soon after the prices starts rising high. The purchaser will then find it difficult to identify his property since the boundaries prevailing at the time of purchasing the site would be removed. In such cases, the only remedy available for those aggrieved is to approach court of law. Infact, only a fraction of the deceived purchasers feel that the laws are helpful under such circumstances. 

Hence, it is advisable for the buyers to invest their hard earned money on the sites that has been approved by the competent authorities and does not attract any violation of provision of law pertaining to Law Revenue Rules, Land Reforms Act or other relevant laws. An experienced advocate would give better guidance since the documents pertaining to the property would be diligently and thoroughly scrutinized by an Advocate before the purchaser proceeds to buy the property without involvement of any kind of legal complications and dream to own a house would become a reality.