5 Important Aspects of the Akrama-Sakrama You Must Know

http://www.vakilhousing.com/5-important-aspects-akrama-sakrama-must-know/[07-09-15 08:14:48]

Suhasini Rao

5 Important Aspects of the Akrama-Sakrama You Must Know by Ramesh Kumar | Jul 25, 2014 | 3 comments

Bangalore’s skyline is dotted intensely with

construction that violates building norms

set down by the planning authorities. So

much so, that almost 80% of properties in

the city knowingly or unknowingly flout

these regulations.

The process of urbanisation needs to be

streamlined and monitored strictly.

However, over time, the same has occurred unchecked. For instance, agricultural

land has been constructed upon in violation of town planning rules.

Buildings have been constructed that are not in line with building regulations. Usually,

buildings that violate building norms are demolished. This of course, not only causes

hardship to the owners and others affected, but also leads to tremendous financial

loss.

To deal with this, the State government of Karnataka has decided to implement

Akrama-Sakrama scheme, which will enable regularisation of properties that had

violated buildings norms.

The scheme is an amendment to various acts, including Karnataka Town and Country

Act, to create what will be called the Karnataka Town and Country Planning

U a

5 Important Aspects of the Akrama-Sakrama You Must Know

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(Regularisation of unauthorised Developments) Rules 2013. This bill has seen several

updates and governments and is once again in the limelight right now.

These draft rules seek to regularise violations pertaining to setbacks, floor area ratio

(FAR), non-conversion of agricultural land, and formation of unauthorised layouts and

sites under urban local bodies, including the Bruhat Bangalore MahanagarPalike

(BBMP).

It will permit up to 50 percent violation of setback norms and permissible FAR in

residential buildings and up to 25 percent in non-residential buildings.

Any building in violation beyond this would attract demolition. There are several

aspects that may be debated on this law.

Suhasini Rao, Senior Manager, Public Law Initiatives, Rainmaker Learning Resource

Private Ltd, explains the implications of the Akrama-Sakrama for both builders and

home owners in this detailed interview.

1. What is the proposed fee structure for the regularization of a building violating norms?

You may access a copy of the Draft Rules here. Rules 16, 17 and 18 outline the table

of fees for different kinds of regularizations. Some of these may be quite hefty. Take

the example of FAR for residential properties.

If the violation is up to or less than 25%, then the fee prescribed for regularisation is

6% of the total violated area in accordance with market value of land. If the violation is

between 25% and 50%, then the fee is 8% of the total violated area’s market value of

land. Beyond 50% violation may not be regularised and would be liable for demolition.

2. Should Akrama-Sakrama come into – what will be its impact on builders and buyers?

In the short term, properties that currently attract a lower price due to their status as

‘illegal constructions’ will increase in value after regularisation. Such a spike in supply

of real estate may temporarily lower buying prices.

5 Important Aspects of the Akrama-Sakrama You Must Know

http://www.vakilhousing.com/5-important-aspects-akrama-sakrama-must-know/[07-09-15 08:14:48]

However, in the long run, the buyers may end up paying more. By paying the

prescribed fee to regularise illegal constructions, for instance, professional builders

could pass on the burden of these penalty fees to the ultimate buyers.

Therefore, property prices may increase at purchase.

3. What will this scheme mean for those who may be living in B-khata buildings or those that violate norms?

‘B’ Khata registration is granted to those properties that do not conform to planning

regulations or have deviations there from. If the Draft Rules come into effect,

essentially, owners of ‘B’ Khata properties would be able to have their properties

registered as ‘A’ khata after regularising the property by paying the fees as envisaged

by the Draft Rules.

4. How will the scheme affect you as the owner of a building which has such deviations?

If these Draft Rules are implemented, then, in the short term, as an owner of a

property that is in violation of building regulations, you could pay a penalty fee and

have your property regularised. This could also perhaps, boost the value of your

property in the interim.

However, from a long term perspective, it may be damaging to the building or even to

the area if there is unrestricted growth, or if development of the property is carried out

without checking the health and safety requirements.

5. What are the concerns in the implementation of the scheme? What are the measures being taken?

The greatest concern in the implementation of the Draft Rules is the impact it will have

on the long- term process of urbanisation and structured town planning. By

regularising illegal constructions now, the government will earn revenue through

penalty fees paid.

Further, a large number of properties that are currently seen as ‘unsaleable’ or attract

5 Important Aspects of the Akrama-Sakrama You Must Know

http://www.vakilhousing.com/5-important-aspects-akrama-sakrama-must-know/[07-09-15 08:14:48]

lower prices due to their ‘B’ khata registrations, will become attractive in the real

estate market, thereby increasing supply and lowering prices. But in the long run, this

will gravely affect the real estate market in the city and indeed, in the State.

For one, disregarding safety norms and building regulations is not the answer to

constructing sound infrastructure. Secondly, perception of real estate in Bangalore will

be that of lower-quality construction since it will be a known fact that buildings in

violation of legal requirements are permitted to exist.

Akrama-Sakrama continues to languish in the legal system and it may be a while

before we actually see it come into force. The final shape this bill takes will continue

to evolve with time.

Ramesh KumarRamesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.

Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University

and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil

Housing.

3 Commentsramesh on March 2, 2015 at 3:27 pm

Is this Akrama Sakrama regulation is applicable to vacant sites also???? Reply

5 Important Aspects of the Akrama-Sakrama You Must Know

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Hari on March 4, 2015 at 12:38 pm

In the para 3 above, it has been stated that If the Draft Rules come into effect, essentially, owners of ‘B’ Khata properties would be able to have their properties registered as ‘A’ khata after regularising the property by paying the fees as envisaged by the Draft Rules. What is the process involved in the Draft Rules coming into effect? Will the draft rule be good enough to regularize? What will the Gazette Notification and when will it be published?

Reply

Nimmy Joseph on March 23, 2015 at 3:15 pm

Hi Hari ,

As the Akrama Sakrama is pending from Government side we cannot say anything.

Reply

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