5 Important Aspects of the Akrama-Sakrama You Must Know

5 Important Aspects of the Akrama-Sakrama

You Must Know
by Ramesh Kumar | Jul 25, 2014 | 3 comments

Bangalores 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.
Suhasini Rao

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
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5 Important Aspects of the Akrama-Sakrama You Must Know

(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 Ruleshere.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 areas 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.

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5 Important Aspects of the Akrama-Sakrama You Must Know

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
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5 Important Aspects of the Akrama-Sakrama You Must Know

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 Kumar
Ramesh 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 Comments
ramesh on March 2, 2015 at 3:27 pm
Is this Akrama Sakrama regulation is applicable to vacant sites also????

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

Reply

5 Important Aspects of the Akrama-Sakrama You Must Know

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

Reply

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?

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.

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