Now file land complaints via TN police site

images The State Crime Record Bureau (SCRB) will soon introduce a link on the state police website to invite complaints from people living outside the state and abroad regarding land grabbing.“We are planning to create a new email id for the virtual anti-land grabbing cell, which will help people settled outside the state, leaving behind their ancestral property,” additional director general of police (ADGP-Law and Order) S George said. Police sources said, many of the land grabbing victims are senior citizens, women, widows and those employed outside the state. “There is a separate unit functioning at the DGP’s office to look into online complaints. Several of them are on land grabbing. Now I am just forwarding those complaints to the respective districts and city police chiefs. The new facility will streamline the system,” he said. The police have registered 210 cases out of the 2,600 complaints they had received in the last 15 days and arrested 400 people. The state police have retrieved nearly . 700 crore worth property encroached or grabbed using muscle power, and handed over to the rightful owners, another officer said. Police sources claimed the total value of land grabbed could be huge. “A conservative estimate shows it could be worth Rs 10,000 crore,” an officer said. Tamil Nadu chief minister J Jayalalithaa had announced early this month the formation of anti-land grab cells in all districts. There are 31 anti-land grabbing special cells including seven special units under the seven commissionerates. Each team headed by an additional superintendent of police has a deputy superintendent of police, two inspectors, 4 sub-inspectors and eight other personnel as members.


Co-owners shares should be specified in sale deed

Property can be bought and owned jointly by more than one person. There are some legal and financial implications in such a case that need to be taken care of so as to avoid disputes.

One of the most common reasons for owning property jointly is financial. People pool in funds to buy a property.

A common example of this is purchase of property by husband and wife. By clubbing their incomes, they are also eligible for a higher loan amount. The couple having separate sources of income may pool in their resources to buy a home.

When two or more people buy a property but do not specifically mention the share that each has in the property, a ‘tenancy-in-common’ is created. All the coowners can use the entire property and every co-owner is deemed to be having an equal share in it. After the death of one of the co-owners, the interest in the house does not pass on to the other co-owners but to the legal heir or a person named in the Will of the deceased, who will then become a ‘tenant-in-common’ with the surviving co-owners.

In case the property is owned by two or more persons in equal shares, it is referred to as a joint tenancy. In case one of the joint tenants expires, his interest automatically passes on to the surviving joint tenant(s).

In case a property is jointly owned by two or more persons, the fact should be specifically mentioned in the sale deed. A property can be acquired by two or more persons jointly by pooling in their resources. Unless there is a contract to the contrary between the parties, co-owners will have a share in the property that is proportionate to the funds contributed by them to buy it.

The names of the co-owners, along with their respective shares of joint ownership or the ownership in the property should be clearly and specifically mentioned. As such, in case of any income from the property or any gains received on the transfer of such a property, the returns can be divided in the respective proportions of ownership.

Under the Transfer of Property Act, every joint or co-owner has a proprietary right of the entire property. Accordingly, a sale has to be with the consent of all coowners involved. Only in certain cases, the co-owners get exclusive rights to certain parts of the property, which one can transfer. In case of a house, consent has to be sought from all co-owners owning the house.

A co-owner is entitled to right of possession, use and to dispose off his share in the property if it is clearly stated in the deed. In case a co-owner is deprived of his property, he has a right to be put back in possession.

It is to be noted that mere co-ownership of property without reference to any specified extent would imply that the co-owners have equal interests in the property. For any specific, pre-agreed shares, the details have to specifically be mentioned in the property documents. The sale deed can specify the shares of the coowners – the proportion of ownership among the individuals.

In case one wishes to add a co-owner at a later stage he can execute a sale deed. He can sell a portion of the property to the other person and then get the sale deed registered as a co-owner of the property by paying the necessary charges. This will entail payment of stamp duty.

Alternatively, one can execute a gift deed. He will need to make a gift deed and get it executed on a stamp paper, and register it at the registrar’s office.

In case of co-ownership, transfer of property is easy as if one of the partners die. The surviving spouse then becomes the sole owner of the house.

Tax benefits

Both the owners can claim tax benefits. Both can claim deductions of up to Rs 1.50 lakh against the interest paid on the home loan. They can also claim tax benefits of up to Rs 1 lakh against the principal amount repaid under Section 80C.

If the property is sold, the co-owners will have to pay tax on the capital gains earned by them. Section 54F of the Income Tax Act provides that if a taxpayer invests the sale proceeds received from the sale of any capital asset in buying a residential property, the long-term capital gains on sale of the property will be exempt. In order to claim this exemption, the house should be purchased by the taxpayer. However, it does not stipulate that the house should be purchased in the name of the taxpayer only. Including the spouse’s name as co-owner will not impact the exemption granted by the Act.

Source: Times Property, The Times of India, Bangalore

New bill may ease pain of losing land for projects

Land owners facing acquisition threats from major infrastructure projects would be a relieved lot with the LokSabha clearing the Land Acquisition Bill that promises property owners a higher compensation — four times of what the market offers. The bill will now go before the RajyaSabha.

Acquisition of land for major infrastructure projects like GAIL pipeline, highway expansion and coal bed methane exploration has been a major hurdle in TN. A satellite township at Thirumazhisai is stuck owing to opposition from farmers.

During the previous DMK regime, Tata’s proposed 2,500 crore titanium dioxide project was shelved owing to stiff opposition to the plan to acquire 10,000 acres in Tirunelveli and Tuticorin. The government also dropped its plan for a satellite township at Thaiyur, off Old Mahabalipuram Road, under pressure from PMK. The new bill is expected to make land acquisition smoother, speeding up infrastructure projects.

Farmers are often justified in opposing acquisition of their land, because compensation used to be meager, and seldom paid on time. “Several people, who lost about 1,200 acres to the Neyveli Lignite Corporation in 2006, have not yet received compensation , and many of them are working as construction workers and house maids,” said former Cuddalore panchayat chairperson R Silambuselvi.

At times, governments announce mega projects without studying environmental impact , said Tamil Nadu Cauvery Delta Farmers’ Association general secretary S Ranganathan . He said, “The coal bed methane project in Thanjavur and Tiruvarur will ruin agricultural land that caters to 45% of the state’s food requirement.” R Ganesan of Chettipalayam near Coimbatore, opposing GAIL’s pipeline project, said, “The alignment cuts through my coconut farm. I will lose one acre. The compensation, which is one-tenth of the guideline value , is a pittance.”

S Velumani, who made headlines by staging a sit-in protest in his well recently, opposing acquisition of his 3.5-acre coconut farm for the Coimbatore-Mettupalayam road expansion , said, “I have only three wells. All the three wells would go for the road project.”

Most often, the victims are small farmers. Successive agricultural censuses have shown a growing imbalance in the distribution of land in TN. Around 59 lakh marginal farmers (those who hold less than one hectare or 2.47 acres) own 22 lakh hectares, 12 lakh small farmers (one hectare to two hectares ) own 17 lakh hectares, six lakh semi-medium farmers (two hectares to 4 hectares) own 16 lakh hectares, 1.9 lakh medium farmers (4 to 10 hectares) own 11 lakh hectares and 26,000 large farmers (more than 10 hectares) own six lakh hectares. Interestingly, the number of marginal farmers, 39.5 lakh in 1977, has shot up to 59 lakh. On the other hand, the number of medium and large farmers has declined – from 3 lakh to 1.9 lakh and 46,000 to 26,000 respectively.

Few projects have had a smooth sailing at the land acquisition stage. A case in point is GVK’s multi-product SEZ at Perambalur, for which the firm acquired 3,184 acres in 2007 and 2008 by paying more than the market price. Analysts feel that economic viability alone should not be the criterion. “Social viability is more important. The money given to farmers does not go outside the country. Hence, there is nothing wrong in paying them more than the market price,” noted Madras Institute of Development Studies director R Maria Saleth.


Source: articles.timesofindia.indiatimes

Stamp Duty Laws

What is stamp duty? Why should it be paid and by when?
It is a tax and must be paid in full and on time. A delay attracts penalty at 2% per month, subject to maximum penalty of 200% of the deficit amount of stamp duty. Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme attract a lump sum reduced penalty. Documents not properly stamped are not admitted in court as evidence. It is payable before execution of the document or on the day of execution of document or on the next working day. Execution of a document means putting signatures on the instrument by persons party to the document.

Who pays?
In the absence of an agreement to the contrary, the purchaser/transferee has to pay or in case of property exchange, both parties have to bear it equally.

On what instruments does stamp duty have to be paid?
Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under Indian Stamp Act, 1899). Except transfer by will (or by original nomination in a co-operative society) all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and licence agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration etc. have to be properly stamped. When a nominee transfers the flat subsequently in the name of legal heir, such transfer also requires stamp duty.

real estate laws, india real estate property laws, real estate laws india, real estate property laws, real estate transfer laws, real estate settlement lawsIf you have purchased a flat in a co-operative society on or after December 10 1985, you have to pay stamp duty on market value as per the Ready Reckoner, issued every year in January.

This is a public document, available in any law bookshop. Market value is the value as worked out as per the Stamp Duty Ready Reckoner or the consideration stated in the instrument, whichever is higher. As per a new amendment in the Income Tax act, market value for the purpose of capital gain tax is the same as the market value for stamp duty payment.

How is a flat defined?
A flat means a separate and self-contained set of premises used or intended to be used for residence, or office, or showroom, or shop or godown or for carrying on any industry or business (and includes a garage), the premises forming part of a building and includes an apartment.

In whose name is the stamp paper required to be purchased?
Stamp papers are to be purchased in the name of one of the parties to the document, otherwise such agreement will be treated as if no stamp paper was used. However, it will not make the agreement invalid and can be enforced in Law if proper duty is paid subsequently. Stamp paper is valid for six months from the date of purchase.

What is a revenue stamp?
It is a tax of Re.1 in the form of revenue stamp, which should be affixed on receipt for any money or other property, the amount or value of which exceeds Rs. 5,000.

Is stamp duty payable on the instrument or transaction?
It is payable on instruments. If any information essential for working out stamp duty is missing, the valuation officer can call for it. Information such as the Carpet or Built-up area, number of floors in the building, year of construction, name of Division/Village and C.S./C.T.S. number of plot of land, must be recorded in the agreement for quicker response.

What is the rate of stamp duty?
Stamp duty on non-residential properties whether in a co- operative society or not is at a flat rate of 5% of the market value. Stamp duty on residential flats in a housing society and buildings covered under Article 25(d) of Schedule I of Bombay Stamp Act. 1958, attracts concessional rates depending upon its market value as follows: Upto Rs. 1,00,000 stamp duty is nil Between Rs. 1,00,001 to Rs.2,50,000, it is 0.5% of the value. Between Rs. 2,50,001 to Rs.5,00,000 Stamp duty is Rs. 1,250 + 3% of the value above Rs.2,50,000. Above Rs.5,00,000 stamp duty is Rs.8,750 + 5% of the value above Rs.5,00,000.

What precautions should one take to avoid practical difficulties later?
Generally one copy of the exchange agreement is made and registered and then there are various practical problems.

The following precautions should be taken to avoid complications:

 – Assuming there is one ‘Flat-A’ owned by ‘Person AA’ and he wants to exchange it with ‘Flat-B’ owned by ‘Person BB’. In the Exchange Agreement there should be a clause where it states that original agreement will be considered original agreement for ‘Flat-A’ and will remain with it’s new owner ‘Person BB’ and second copy will be considered original agreement for ‘Flat-B’ and will remain with its new owner ‘Person AA’.

 – Agreements should be made in duplicate. The original agreement will be charged with full stamp duty and second copy will be charged only with Rs.20.

  – Both agreements must be registered. The original agreement will be charged full registration fees and second copy will be charged a nominal amount.

  – Both the persons must keep their respective copies and will be free from each other in all respects.

Understanding the encumbrance certificate

encumbrance certificateAn encumbrance certificate is evidence that the property in question is free from any monetary and legal liabilities. It is evidence that the property can be sold as a free title and the ownership will come to you without any associated baggage.

This is a document that you will be able to procure from the registration authority’s office.

It is your assurance that the property you are about to invest in is clear of any legal dues and has a marketable title.



Encumbrance is simply a reference to any liabilities in the form of a mortgage or a loan against the property that has not been cleared. The encumbrance certificate is provided from the sub-registrar’s office where the particular property is registered.

All the details of any transaction on the property will be listed in it. It is important for you to get this certificate if you plan to buy the property, take out a home loan for it or take a loan against it. In all cases, governmental authorities will insist on a 13-30 years encumbrance certificate.

The information

When issued, the information will pertain only to the period that is specified and not more. All the details mentioned in the certificate will be based on the extract from the register with the sub-registrar. This in turn is based on the documents that the registrar had registered with him.

There are, however, a few documents that need not be registered and the essence of these will not be present in the encumbrance certificate. Such documents that are excluded do not fall under the scope of the Registration Act 1908.

These excluded documents are the equitable mortgage papers, where all the original documents are kept with the bank and are not registered with the registrar’s office.

There are also testamentary documents and leases which are for a period less than a year. Some other documents that can be excluded are related to oral tenancy, tax liabilities as well as prior unregistered agreements like documents based on a family arrangement or an unregistered will.

You need a ‘no encumbrance certificate’ if you want to mortgage the property for a loan. If you want to get your certificate you will need to apply for it with a Form 22 with a Rs. 2 non-judicial stamp affixed.

This is addressed to the tahsildar and will have to provide the residential address and the purpose for which the certificate is needed.

The essentials

You will also need to

* Attach an attested copy of your address proof.

* Mention all the title details, the ownership details and survey number etc.,

* Mention the period, give a detailed description of the property, the area it covers and all the boundaries.

* The fee applicable is on a per year basis. Any fraction of the year is considered a complete one.

15 to 30 days required

All of this has to be submitted at the jurisdictional sub-registrar’s office. In turn the tahsildar will request a report from the Patwari on the particular property.

If the property is clear, and the enquiry conducted comes out clean then the “no encumbrance certificate” is provided. It generally takes between 15 to 30 days from application to receiving your encumbrance certificate.

Two categories

You will get your encumbrance certificates either on Form No 15 or Form No 16.

Form No. 15

Encumbrance Certificate on Form No. 15 will contain a record of sale, lease, mortgage, gift, partition, release etc. All of this will have to be registered with the competent authorities and placed on record in Book I that is maintained by the registering authorities for the specific period that the certificate is being asked for.

Form No. 16

You will get your encumbrance certificate in a Form No. 16 only when there is nothing by way of transactions for the time frame that the certificate is being sought for.


Source :thehindu

standard car park stall size as per CMDA norms


I bought a 3BHK Flat in Thiruvottiyur. I paid Rs. 1 lakh for a car park that was 15 ft wide and 18 ft long. The builder has sent me a notice stating he will allot me an 8 by 7 ft section of this to me and sell the rest to another resident. What is the standard car park stall size as per CMDA norms?

M. MineeshThiruvottiyur

As per CMDA regulations, the minimum size of a car parking space is 2.5 m (8’2”) wide and 5 m (16’4”) long.



Parking becoming the most important criteria for a home buyer

Parking is becoming the most important criteria for a buyer and the cost is now beyond the reach of the middle-class , says Advocate Ameet MehtaDoes the definition of Flat include Parking in Bye-laws ?

Sale of car parking slots is a very controversial matter especially in a city like Mumbai. It is quite shocking to note that the definition of a flat in the model bye-laws includes a

Godown / Garage but does not include an open car parking space. It is high time that Government amends these bye-laws and introduces the word ‘Open Parking’ in this definition. This is important because parking is now becoming the most important criteria for a buyer and the cost is now beyond reach of the middle-class and soon it would become a dream for the middleclass .

What are the various judgements on Parking?

In the landmark judgment delivered by the Maharashtra State Co-operative Appellate Court Mumbai in the case of M/s Prakash Auto v/s Aranja Arcade Premises Co-operative Society Ltd. & ors. has prevented the Builders from selling or otherwise disposing of the disputed car parking spaces. The implications of the above said judgment is that even if the builder sells car parking space in the basement, a co-operative society is entitled to allot the car parking space in the basement to their members on the basis of the resolution passed by the society at its General Body Meeting.

Now no builder can sell parking space under stilts separately, the Bombay High Court has ruled in re-Nahalchand Laloochand Pvt. Ltd., that a stilt parking space is a common parking space available to members of the housing society and not an additional premises or space available for the builder or developer to sale either to any member of the society or any outsider and further clarified that even under DC rules the developers had to provide car parking spaces, wherever carpet area of the flat is more than 35 sq meter and estoppal do not work against statutory provisions. Apart from this fact the court has also considered the definition of flat under Maharashtra Ownership of Flats Act, which includes open and parking spaces in area if the flat wherever area is counted as superbuilt up.

In a recent case of an argument of a real estate development company that they are entitled to sell garages or stilt parking areas as separate flats to owners who intend to use it as parking facilities , a bench of Justices A K Patnaik and R M Lodha of Supreme Court, ruled that builders or promoters cannot sell parking areas as independent units or flats as these areas are to be extended as “common areas and facilities” for the owners.

The court passed the judgment while dismissing the appeal of the promoter, Nahalchand Laloochand Pvt Ltd, who challenged the Bombay high court’s ruling that under the MOFA (Maharashtra Ownership Flats Act) a builder cannot sell parking slots in the stilt area as independent flats or garages. The apex court accepted the argument of the flat owners of Panchali Co-operative Society in Dahisar (E) that even if they had entered into any prior agreement or contract with the builder that they would not lay any claim on the parking areas, the same would not have any legal sanctity .

The court also disclaimed the appeal of the promoter that by treating these parking spaces as common areas, every flat purchaser in any case will have to bear proportionate cost for the same even if he may not be interested in such parking space at all.

Justice Lodha wrote in the judgment that the promoter has no right to sell any portion of such building which is not a ‘flat’ within the meaning of Section 2(A-1 ) and the entire land and building has to be conveyed to the organization . The only right that remains with the promoter is to sell unsold flats. Thus, it is clear that the promoter has no right to sell stilt parking spaces as these are neither flats nor apartments or attachments to a flat.

It is necessary for a promoter to fully disclose the common areas and facilities . Stilt parking spaces are usually not described as the part of the common areas. The same as such does not appear in the advertisement and agreement with the flat purchaser.