Karnataka government gives a thumbs-up to industrial associates and the realtors by laying off the 99-years lease condition on the allotment of lands through the Karnataka Industrial Areas Development Board (KIADB). Now, the absolute sale deeds will be issued on the allotted land.
The decision was taken place by the Law Minister, T B Jayachandra in a cabinet meeting. The changes in the rules will be applicable from retrospective effect from 2013.
The demand to relax this rule has been there for so long as the 99-year lease created many problems while planning to develop especially in the execution of infrastructure projects or housing complexes. Due to longer lease period, the investors were not able to sell the sites or smaller projects to others. Also, the buyers wouldn’t be interested in the projects without the absolute sale deeds.
Earlier, the government had agreed that the allotment of land by KIADB in their industrial areas for the development of single-unit complexes and housing complexes will be on lease-cum-sales. Later, the lease term was changed to 30 years in 2014 but in the next year, it was increased to 99 years.
“Now the allotment would be made on the lease-cum-sale agreement and the project promoter will be the owner of the land,” says Jayachandra.
Source: ET Realty