In a welcome step to help real estate developers in the state of Karnataka for plotted and villa developers, the Karnataka Government has amended the Karnataka Town and Country Planning Act, 1961 by way of an ordinance on May 22, 2020 (“Ordinance”) bringing out new and progressive guidelines for development of layouts in the state of Karnataka by inclusion of a new sub-section 2C in Section 17. The major changes being brought about by the Ordinance are as follows:
(i) Along with parks, ‘play-grounds’ have also been included a new classification for surrendering of land and should be welcomed by all residential communities.
(ii) Layouts may now be developed in 3 (three) phases and accordingly a person intending to develop his plot / land shall be required to submit a phasing plan to the Planning Authority along with the provisional plan showing the development of the layout area in three phases.
(iii) The layout shall be developed in 3 (three) phases consisting of 40% (forty percent) in the first phase, 30% (thirty percent) in the second phase and 30% (thirty percent) in the thirdphase.
(iv) The Planning Authority shall release all building sites in the first phase of the layout, that is 40% (forty percent) of the total layout area, after the relinquishment of roads, parks and playground and civic amenity areas of the entire layout area without claiming any compensation and after completion of all infrastructure development works in the first phase as specified in Table-A of the Ordinance and after obtaining certificate of completion for the above said works from the concerned Authority/ Agency/ Department/ Corporation specified in Table-B of the Ordinance.
(v) On relinquishment of the areas for the entire Project/layout and completion of infrastructure work as stipulated in Table A and obtaining completion certificate from the authorities stipulated in Table B in respect of the first phase, copy of the first phase layout plan affixing the seal of the Planning Authority showing the building sites released for transfer of title to the allottee by the developer by registration and a copy shall be sent to the local authority for issue of khatato the sites.
(vi) For the subsequent second and third phases, the developer is required to complete for each phase infrastructure work as stipulated in Table A and obtaining completion certificate from the authorities stipulated in Table B and thereafter, the layout plan affixing the seal of the Planning Authority showing the building sites released for transfer of title to the allottee by the developer by registration shall be provided and a copy shall be sent to the local authority for issue of khatato the sites.
(vii) To be eligible for obtaining release of sites in respect of the layout, the Project requires registration to be obtained under the Real Estate (Regulation and Development) Act, 2016.
(viii) Completion certificates for the works stipulated in Table B of the Ordinance shall be provided after joint-inspection being conducted by the appropriate authority.
Mr. Vishal Bhat is an LLM in Business Laws from NLSIU and a partner with K-Law specializing in real estate, structured debt, advisory and general corporate matters and can be contacted on email@example.com
The link to the Ordinance can be found on
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The material contained in this alert is for informational purposes only. The views expressed are not those of K Law and do not constitute legal advice. K Law disclaims all liability to any person or entity for any loss or damage caused by errors or omissions in this alert. The author is this article is Vishal Bhat (Partner).