BENGALURU: Buckling under pressure from industrial associations and the realty sector, the government on Wednesday decided to do away with the system of allotting land on a 99-years’ lease condition through the Karnataka Industrial Areas Development Board (KIADB). Hence forth, absolute sale deeds will be issued.
A decision to this effect was taken during the cabinet meeting. “The present rule of 99-year land was creating problems with regard to execution of infrastructure projects, especially housing complexes, and there was a demand to relax the rule. The issue was discussed in detail and a decision was taken to change the rule,“ law minister T B Jayachandra said.
The government had approved allotment of land by KIADB in their industrial areas for single-unit complexes and housing complexes on lease-cum-sale. The process was tweaked when the lease term was changed to 30 years in 2014. Subsequently, in 2015 it was extended to 99 years.The lease period was increased to check early disposal of land in the realty market.
“But this was causing problems. An investor who has acquired land from KIADB for a housing project cannot sell the sites or smaller plots to others because of the 99-years’ lease condition. Without absolute sale deeds, buyers wouldn’t not show any interest in such projects,“ said Jayachandra, adding, “Now the allotment would be made on lease-cum-sale agreement and the project promoter will be the owner of the land.“ The minister said the changes will be applicable with retrospective effect from 2013.
Credits ET Realty