5 Important Aspects of the Akrama-Sakrama You Must Know

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 (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.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 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.