NRI landlord needn’t prove ownership to evict tenant, says SC

NEW DELHI: Non-resident Indians cannot be asked to prove ownership of their property to get their tenants evicted, the Supreme Court has said while overruling a high court order.

"If ordinarily a landlord cannot be asked to prove his title before getting his tenant evicted on any one of the grounds stipulated for such eviction, we see no reason why he should be asked to do so only because he happens to be a non-resident Indian (NRI)," a Supreme Court bench said.

The court was ruling on a case from Punjab where an NRI returned and wanted to vacate a shop he had rented out as he wanted to start a business. The tenant contested the NRI's title to the shops and won a case in the lower court, and a high court bench subsequently upheld the ruling of the rent controller.

On Tuesday the top court ruled in the NRI's favour. "Section 13-B is a beneficial provision intended to provide a speedy remedy to NRIs who return to their native places and need property let out by them for their own requirement or the requirement of those who are living with and economically dependent upon them. Their position cannot, therefore, be worse off than what it would have been if they were not NRIs," it said.

Justices TS Thakur and C Nagappan said the law entitles an NRI who returns to India to demand eviction of any residential or non-residential building let out by him, if it is required for his use or his dependant.

However, the right to seek the tenant's eviction is available only after five years from the date of such NRI becoming owner of any building. This is also subject to the condition that any such right shall be available to an NRI owner of the premises only once during his life time.

"The courts below fell in manifest error in holding that the appellant-landlord was obliged to prove his title to the property, no matter the tenant clearly admits existence of...relationship of landlord and tenant between him and the appellant (NRI). We have...no hesitation in reversing the view taken by the courts below and in decreeing the eviction petition," the bench said in its order.

The court asked the tenant to vacate the premises by March 31, 2015, subject to the condition that he clears his rent arrears in six weeks and submits an undertaking in court that he would clear out by that date. If he fails to abide by these, the eviction decree can be executed right away, it said.

The said shop in a building is situated at Banga Road, Phagwara and was let out to a tenant by an NRI who was born and brought up in India but decided to return to India in 2002 after spending 30 years in the UK with the intention of settling down and establishing a hotel at Phagwara his home town.

He filed an eviction petition under Section 13-B of the East Punjab Urban Land Restriction Act, 1949, stating that he was an NRI and needed the shop for his own use and was hence entitled to get it vacated.

The tenant opposed the eviction plea on the ground that the landlord was not an NRI. The tenant also claimed that though he was a tenant in the shop, the sale deeds relied upon by the landlord respondent did not relate to the underlying land.

The rent controller ruled in the tenant's favour by an order passed on November 5, 2004, and dismissed his eviction petition on the ground that he failed to prove his ownership over the premises for a period of five years before the filing of the eviction petition as mandated under the law.

He also ruled that deposition of witnesses appearing on the NRI's behalf did not satisfactorily prove that the building comprising the shops was constructed on land purchased by him in terms of the two sale deeds produced by him.  Source:  Times of India

Training Program on Property Documentation on 18th July, 2014

Knowing the steps and documents required in a property transaction is today essential for both real estate professionals and potential home buyers and investors.

A real estate consultant can enhance his credibility and achieve customer satisfaction by knowing the steps and documents required in a property sales and purchase transaction thoroughly.

On the other hand taking basic precautions and safeguards by knowing the steps, process and documents required in purchasing a property reduces the likelihood of buyers ending up with a messy property deal.

However finding out the steps, process and documents required in a property transaction is a difficult job today, despite the huge growth of real estate in India.

It is therefore NIREM, the leader in real estate education and training in the country, offers a one-day training program on property documentation. Apart from this course, NIREM offers a range of real estate courses for both working real estate professionals as well as those who want to start their career in real estate.

The property documentation program aims to help participants identify the various documents required in property sale/purchase transaction, know how to establish marketability of title, understand the due diligence process, know the phases of real estate development, analyse the buyer-seller-broker relation in property sales process etc.

The training program on property documentation is suitable for Real Estate Developers, Property Consultants & Advisors, Real Estate Marketing Professionals, Housing Finance, Home Loan & Banking Professionals, Property Investors, Potential Home Buyers, Banking, Finance & Insurance Professionals.

The program is scheduled on 18^th July, 2014 at New Delhi. Seats are limited and registration is offered on first-come-first-served basis.

Interested participants may visit www.nirem.org, mail to Nirem.india@yahoo.com or call at +91.7827884220 to know more about the program.

Land record software developed by Goa Government wins international award

A land record portal developed by the Goa government has won an international award for making e-governance concepts people-friendly and accessible, Chief Minister Manohar Parrikar said Tuesday.

Dharnaksh, an e-government project conceived and implemented by the department of settlement and land records, won the Geospatial World Application Excellence award at Holland’s Rotterdam last week, beating over 270 nominations from across the globe, he said.

The citation issued by the organisers of the conference, the Geospatial World Forum, describes the Dharnaksh, as a “robust, reliable and people-friendly land records management system”. The conference which was held in Rotterdam also had union Communication and Information Technology Minister Kapil Sibal as one of the key speakers.

Dharnaksh enables anyone with a computer and an internet connection to search through all the land records as well as survey numbers as well as see the property in question via satellite imagery by just logging in the corresponding property details.

The details available online also enables land owners to ensure that the land and the title deed and survey records has not been surreptitiously transferred by land sharks.

HC allows property sale on power of attorney

NEW DELHI: Spelling relief for thousands of property owners in the city, the Delhi high court has struck down a controversial circular of the state government that restricted property transaction via general power of attorney.

Justice Rajiv Shakdher faulted the state government for wrong interpretation of a landmark 2011 Supreme Court on the issue of power of attorney (GPA), pointing out the apex court never issued a blanket ban on registration by taking recourse to a GPA. The circular had created massive confusion among property owners who had to regularize their property through a fresh sale deed and pay stamp duty.

"The Supreme Court has not said that in no case a conveyance can be registered by taking recourse to a GPA. As long as the transaction is genuine, the same will have to be registered by the Sub-Registrar. There is distinctly a specific reference to the fact that, a person may enter into a development agreement with a land developer or builder for development of a parcel of land or for construction of apartments in a building, and for this purpose a power of attorney to execute sale agreements, can be executed," the court observed.

In October 2011, the SC had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Last year, the state government came out with a circular banning sale of property on the basis of a GPA, a will, and agreement to sell, collectively or separately in respect of an immovable property. "No transfer of property will take place until a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ Sub-Registrar," the circular stated, with the government claiming it issued it in "strict adherence to SC ruling" on property transactions.

The government had clarified that property transactions involving GPA, done after the SC order of October 2011 would not be null and void and property holders can "regularize" them by paying the difference in the stamp duty.

HC's order came on the petition of a builder who had entered into a property transaction in south Delhi by way of a GPA. The builder highlighted how the government's circular failed to make a distinction between registration of a genuine GPA and those done to evade stamp duty. Source: Abhinav Garg, TNN

West Bengal to amend Urban Land Ceiling Act

The West Bengal government is contemplating making critical amendments to the Urban Land Ceiling Act which will provide new incentives to developers

By Chandrabindu; igovernment

Kolkata, Nov 7th: With a view towards promoting commercial activities in upcoming residential colonies, the West Bengal government is contemplating making critical amendments to the Urban Land Ceiling Act. The proposed amendments will aim to provide incentives to developers who agree to integrate housing projects with commercial activities.

Confirming the plan, Mr. Debashis Sen, Chairman and Managing Director of West Bengal Housing and Infrastructure Development Corporation, said “We are looking at framing a policy by which we can facilitate housing-cum-commercial projects.” Mr. Sen added that that the revised Act could be announced by the end of this fiscal year.

Other officials also added that the amendments will not only encourage commercial activities in metropolitan townships, but also allow the state to earn revenue in terms of duties and other taxes. As per the proposed policy, which is in draft stage, developers could be offered some relaxation in stamp fees as well as allowed the ability to purchase land that was prohibited under the existing ceiling act.

“However, construction companies will be required to dedicate 51 percent of their land for commercial activities, under this act and nearly one-fourth of the houses to be developed on the remaining 49 percent of land will be allocated to economically weaker sections under the proposed amendments,” Mr. Sen added.

Under the existing West Bengal Land Ceiling Act, private ownership of agricultural land in the State is restricted to 17.5 acres for irrigated land and 24.5 acres for areas that are rainfed. In urban areas, private ownership is capped at only 0.125 acres.

Officials of the Urban Development Department said that the proposed policy would also seek to allow conversion of agricultural land for housing purpose. “Through this proposed policy we will try to provide some relaxation in the conversion process as well as easing the approval of building plans,” they maintained.