Sairam

All,
I am thinking to buy a plot 60x40 at Bangalore North (Devanahalli) AERO CITI by Aishwarya Homes ,they are asking for 800- 850 rs/sqft , they say it is DC Converted ( ie grama panchayath approved with biaapa noc ) and Bank cant give loan for these type of plots ,I have a question is it ok to buy the plot .
Please post your valuable thoughts and suggestions and if possible put forthe your comments on Aishwarya Homes .

Thanks in advance for your time and consideration .


Thanks
Sairam.

kaustav

Friend,

DC converted and Gram Panchayat Approved are two different things. And BDA NOC is again totally different.

To buy any land, the following steps are necessary:
1. Conversion of land from 'Agricultural' (farmland) status to 'residential'. This has to be done by the farmer himself before you conclude your deal and get the property registered. Non-farmers are not allowed to purchase agricultural land in Karnataka.
Definition of farmer: (1) You or your family need to possess agricultural land in India already, and must have been continuously owning agricultural land since 1974. (2) Your income from non-agricultural sources for the past 5 years should not have exceeded Rs. 2 lakhs per annum.
2. The plan of the layout on such land needs to be approved by the relevant town planning authority. There are 6-7 such authorities, and you have to find out which authority has jurisdiction over the survey number of the property that you want to buy. The authorities are Corporation/BCC (areas in interior Bangalore), BDA (areas inside city limits, except corporation areas), BMRDA (areas upto 40-50 km around the city, except BDA areas), BIAPPA (areas near airport), Lake Development Authority or LDA (areas close to designated lakes), and respective village Panchayats (for areas far away from the city - basically those areas where BMRDA jurisdiction has not yet become applicable)
(There is also an authority called DTCP - Department of Town and Country Planning - but I'm not clear what is the jurisdiction of this department.)
3. 'No Objection Certificate' or 'NOC' from BDA.
BDA gives two types of NOC. The first is, that so far they have not tried to acquire the land with that particular survey number. The second is, that they do not have any objection to the coming up of a residential layout on that land in future. Both these NOCs are important and necessary.
4. A few other approvals - I will keep updating this post as I get more information on this.

In brief: DC Converted means the conversion of land from 'agricultural' (i.e. land that can only be used for farming according to the government, and hence assessed for tax accordingly) to 'residential' (a different status, which means that tax assessment will be done differently for this land, and it is no longer used to derive 'revenue' for the state from agriculture. The government authorises the owner to stop cultivating this land and build something on it if he wants). DC stands for District Commissioner, the officer who has the authority to approve such conversions.

DC converted sites are usually eligible for bank loans. Moreover, nowadays DC conversion requires that the layout plan has been approved by a town planning authority, like BDA, BMRDA, BIAPPA etc to ensure that proper space has been allocated for roads, parks and other amenities as per government rules. Without their approval, DC does not give the conversion order.

Also, nowadays the DC conversion has been put on hold indefinitely due to an order of the last government.

'Gram Panchayath Approved' means that the layout that has been formed on this land, has been approved by the local 'Gram Panchayat' in whose jurisdiction the land lies.

As mentioned above, DC conversion requires that the layout / building plan (in case of building) has been approved by a proper town planning authority like BMRDA, BDA or BIAPPA. Whether Gram Panchayat has the authority to approve the layout plan, has to be checked with your lawyer. However once BBMP, BMRDA or BIAPPA has jurisdiction over the specific layout, as per my knowledge Gram Panchayat is no longer the competent authority to approve the layout.

One type of BDA NOC is given by the BDA as of a particular date, and states that the BDA has not issued land acquisition notice for that land as of that date. i.e. as of that date, the BDA has not tried to acquire that land. This is just a safety precaution to prevent the seller from defrauding the buyer by selling him a land at a high price, which the BDA has already issued acquisition notice for at a low price. It does not guarantee, that the BDA will not acquire that land in the future.
The other type of BDA NOC is that they do not object to a residential layout coming up in that land. This is a safety precaution and makes your case stronger in case of future move by BDA to acquire your land.
Any time you buy a non-BDA site, you are running the risk of acquisition by the BDA in future, and there is basically no guarantee. But usually, if you build a house on that site and start living there, the BDA may on compassionate grounds decide not to acquire your site as and when it plans a layout in your area.

I would recommend that you verify the most important things ... has the land been converted from agricultural to residential by due process of 'DC conversion', is the layout approved by the appropriate planning authority, and are there two BDA NOC's. Also 800-850/- per sft for agricultural (unconverted) land near Devanahalli seems very much on the higher side. I have seen recent advertisements for as low as 30-35 lakhs per acre there. 1 acre = 44,000 sft. Even if it is properly DC converted, as per my information the actual deals taking place currently (this month) are in the range of Rs. 725/- to Rs. 750/- per sft.

Also, I would suggest you go through prior threads on Aishwarya/Presidency Group, on this and other forums too. They do not have a good reputation and have received poor feedback.

Of course, please get a good lawyer to go through the papers thoroughly, and don't agree to pay advance to the developer to get the photocopies of the papers for legal verification.

Trust this helps.

(Caveat: I am not a legal expert - what is given above is my understanding based on months of searching for a good site in Bangalore. If there are other experts and I have gotten something wrong here, please feel free to correct. I would also keep updating / correcting this page as and when I get more information.)

Thx,
KC

Sairam

Thanks for your detailed response,hope this would be helpful and must read thread for newbee to buy a plot .
Once again Thanks


Sairam

arin_12

I would suggest all the IT professional to invest in the land there :p So Taking the Flight will be easier while traveling abroad. You can forget about all other problem daily.
And if your job goes then there will be no tension at all. No money no land ...
Bank will easily take that land

adh54

Has anyone had experience with Aishvaryaa Builders, I was planning to invest in Aishvaryaa Dimond near Airport.

kaustav

In one word: Don't.
See previous posts for further info.

kumar_skcus

Hi Kaustav,
Any reason why you are not recommending Aishwarya Homes ? Can you put the details of any real experience or data in recent past ?

The reason I am asking is that I did visit their site and their office recently and they seemed OK. I am planning to invest there and need some real data to decide either way.

Interestingly they have 8-9 projects and most of them are sold out. I know this is just another marketing trick. But thats why I need someone to put real expereicne and data to suggess either way about Aishwarya Homes. I am planning to invest in North Citi.

kaustav

Hi kumar_skcus,

No, I have not had personal dealings with them. However my note of caution is based on a large number of negative feedback comments that I came across (and still do) in various forums, including this one, over past several months. For further info, you could search the archives of this forum.

Thanks,

KC

deva_dream

Hi Kaustav ..

Can you please also share other forum from where you can get feedback regarding bangalore real estate. ...

Thanks ...
Deva

Manoj

My Name is Manoj, has booked a site under Aishwarya/Presidency Projects office located at Rjaji Nagar(Busveshwar Nagar) . The site(ShreeEnclave ) located at Bidadi, paid advance money around 8 lakh(40*60 site)s in the year 2007 November. Unfortunately the registration not happened yet, they are blaming the government every time for the approval and keep saying it will happen in the next month. I opted for the money back arnd 6 months ago as said in the agreement policy, but they are not giving my money back , and again keep postponing. Friends can any one help me ? What can I do to get my money back ?

Regards
Manoj Bhaskar