FOREIGN CONTRIBUTION REGULATION ACT(FCRA)2010 ENACTED AND IS IN FORCE FROM 01-05-2011

Foreign Contribution Regulation Act (FCRA) 2010 has been notified and it has come into force with effect from 1/5/2011. FCR Rules 2011 have also come into force from 1/5/2011.

Key features of FCRA 2010 include the following

• Concept of ‘permanent’ registration done away with; A five-year registration is provided so that dorman organisations do not continue. All existing registered organisations are deemed to be on a five-year validity from now.

• ‘person’ has been defined in a broader sense

• ‘Organisations of political nature’ cannot receive foreign funds.

• Ceiling on administrative expenses has been prescribed.

• Procedure for suspension and cancellation of registration has been Prescribed.

• Statutory role provided for banking sector in regulation.

• Time limits have been provided for accountability of officials

• To deal with bona fide mistakes of NGOs, provision has been made for ‘compounding’ of offences.

HOUSING LOAN AND BANK DOCUMENTATION AND UNDERTAKING EXECUTED BY THE BORROWER

HAVE YOU READ ALL THE CLAUSES AND CONDITIONS ON WHICH THE HOME LOAN HAD BEEN SANCTIONED TO YOU?

HAVE YOU EXECUTED AN UNDERTAKING OR AN AFFIDAVIT TO THE BANK REGARDING THE COMPLIANCE?

CHECK IT ONCE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! THE UNDERTAKING EXECUTED BY YOU TO THE BANK?

WE ARE PUBLISHING ONE SUCH AFFIDAVIT WITH GENERAL CLAUSES EXECUTED ON OATH :

I, XXXXXXX, S/O/W/O, AGED ABOUT, RESIDING AT  XXXXXXXXXXXX, do hereby solemnly affirm on oath and declare as follows:

I am aware that a special condition is stipulated in the sanction letter for submitting an affidavit to the effect that there are no statutory violation and no violation of the bye-laws of the building society in the construction of the building.

In compliance of the above stipulation, I/we do hereby declare and undertake that I/We have verified all the records relating to the construction and declare that the built up house/flat is constructed is as per the sanctioned plan and in conformity with bye laws annexed to the plan.  I/We further declare that the building is constructed as per the sanction plan without violating the rules stipulated by Corporation/Municipality/panchayat or any other local bodies, who are competent to grant permission for construction of the flat/house.

I/we further declare that I/We are aware purchasing the building with our sole responsibility that there are no statutory violations and if it is discovered by the bank that the building constructed is not as per the sanctioned plan or is in violation of building bye-laws annexed to the plan, the bank shall have the power and authority to recall the entire loan with interest, costs and usual bank charges.

Housing Loan limit under priority sector increased from Rs. 20 lakh to 25 lakh w.e.f. April 01, 2011

RBI/2010-11/517
RPCD.CO.Plan.BC.69/04.09.01/2010-11

May 9, 2011

The Chairman/Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks (excluding Regional Rural Banks)]

Dear Sir/ Madam,

Housing Loan limit under priority sector

Please refer to paragraph 6.1 of our master circular RPCD.CO.Plan.BC.10/04.09.01/2010-11 dated July 1, 2010 on lending to priority sector, wherein loans up to Rs.20 lakh irrespective of location, to individuals for purchase / construction of dwelling unit per family, excluding loans granted by banks to their own employees are eligible for classification under priority sector.

2. Pursuant to the announcement made by Union Finance Minister in paragraph 44 of the budget for the year 2011-12, it has been decided to increase the above limit from Rs.20 lakh to Rs.25 lakh.

3. The above change will be applicable to housing loans sanctioned on or after April 1, 2011.

Yours faithfully,

(A.K.Misra)

B KATHA AND its CONSEQUENCES

IF A PROPERTY IS BOUGHT ON B KATHA OR B FORM, THE BUYER CANNOT GET THE KATHA TRANSFERRED TO HIS/HER NAME NOR COULD HE BE ABLE TO RESELL THE SAME AS THE KATHA STANDS IN THE NAME OF THE SELLER.  THE B FORM PURCHASER OF THE PROPERTY CANNOT MAKE MUNICIPAL TAX PAYMENT IN HIS/HER NAME, THE TAX HAVE TO BE PAID IN THE NAME OF THE SELLER ONLY.  ALL THE MUNICIPAL/REVENUE RECORDS STANDS IN THE NAME OF THE SELLER.  THE PURCHASER OF B FORM OR B KATHA WILL HAVE THE REGISTERED SALE DEED COPY.

PROPERTY-CENTRAL REGISTRY NOTIFICATION

Section 21 of the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 – Central Registry – Central Registrar – Notified place at which Central Registry is established

NOTIFICATION NO. GSR 277(E), DATED 31-3-2011

In exercise of the powers conferred under section 21 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Central Government hereby notifies the establishment of the Central Registry at the place mentioned in Column 2 of the Table below which shall exercise jurisdiction in the area specified in the corresponding entry in Column (3) of the said Table, namely:—

TABLE

Sl. No.	Place at which the Central Registry is established	Area of Jurisdiction
(1)	(2)	(3)
1.	Indian Banks’ Association, Delhi Local Chapter C/o Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi-110008.	Whole of India

2. The Central Government hereby, entrusts the operations and administration of the Central Registry and the Maintenance of the Central Register to a Government Company licensed under section 25 of the Companies Act, 1956, namely, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, having its Registered Office at the place mentioned in Column 2 of the above given Table.

3. The Central Registry shall be under the superintendence and direction of the Central

Sl. No.	Place at which the Central Registry is established	Area of Jurisdiction
(1)	(2)	(3)
1.	Indian Banks’ Association, Delhi Local Chapter C/o Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi-110008.	Whole of India

Registrar appointed by the Central Government under sub-section (1) of section 21 of the Securitisation and Reconstruction of Financial Assests and Enforcement of Security Interest Act, 2002.

3000+ ACRES WILL BE DEVELOPED BY KARNATAKA HOUSING BOARD IN THE OUTSKIRTS OF BANGALORE

THE KARNATAKA HOUSING BOARD HAS SENT A PROPOSAL TO THE GOVERNMENT TO ACQUIRE 2000 ACRES AT DEVANAHALLY, 300 ACRES ON TAVAREKERE, BETWEEN MAGADI AND NELAMANGLA AND 1000 ACRES NEAR DODDA ALADAMARA, MYSORE ROAD FOR THE DEVELOPMENT OF SITES IN THE OUTSKIRTS OF BANGALORE CITY TO MEET THE GROWING DEMANDS. 

WHAT IS AKRAMA-SAKRAMA

AKRAMA-SAKRAMA

1).  WHAT IS IT?

2).  WHO IS UNDER ITS SCANNER?

3).  WHAT IS VIOLATION?

4).  WHAT IS DEVIATION?

5).  WHAT IS BUILDING BY LAW?

6).  WILL MY BUILDING BE DEMOLISHED?

7).  IS 100% VIOLATION REGULARISED? NO? THEN, HOW MUCH?

8).  WHICH GOVERNMENT DEPARTMENT HAS THE POWER TO REGULARISE IT?

9).  WHO IS THE CONCERNED AUTHORITY OF THE AREA?

10). WHAT IS THE TIME LIMIT SET FOR THIS SCHEME?

11). HOW DOES THIS SCHEME WORK?

12). WHO IS THE BENEFICIARY?

13). WHICH TYPES OF VIOLATIONS AND DEVIATIONS ARE REGULARISED?

14). HOW? WHEN?

15). IS IT LEGAL?

16). WHAT IS A BUILDING PLAN?

17). WHAT IS SET BACK?

18). WHAT IS F A R?

19). HOW AM I RESPONSIBLE FOR THE FAULT OF THE BUILDER?

20). AM I RESPONSIBLE?

21). WHO HAS TO PAY THE PENALTY?

22). WHAT IS THE AMOUNT OF PENALTY PAYABLE?

23). PROCEDURE FOR GETTING THE BUILDING/VIOLATIONS REGULARISED?

24). WHAT NEXT?

25). AM I SAFE?

26). WILL I GET LOAN FROM THE BANK FOR REGULARISATION?

27). WILL THE REGULARISATION COMMITTEE INSPECT THE PROPERTIES BEFORE ACCORDING SANCTION?

28). WHAT IF, THE VIOLATION IS BEYOND THE SET LIMIT?

29). DO I HAVE TO DEMOLISH THE EXCESS/UN REGULARISED PORTIONS OF THE BUILDING?

30). CAN A POLICE COMPLAINT OR CRIMINAL CASE BE LODGED AGAINST THE BUILDER?

31). CAN A POLICE COMPLAINT OR CRIMINAL CASE BE LODGED AGAINST THE OFFICER, WHO HAVE NOT SUPERVISED AND ARE FOUND TO HAVE DERELICTED THEIR DUTY?

32). CAN A COMPLAINT BE LODGED WITH LOKA AYUKTA AGAINST THE OFFICIALS?

33). CAN A COMPLAINT BE LODEGED WITH THE CONSUMER`S FORUM?

34). WHY CAN`T THE GOVERNMENT REGULARISE THIS WITHOUT PENALTY?

35). STAMP DUTY, REGISTRATION FEE, KATHA FEE, MUNICIPAL TAXES, BETTERMENT CHARGES, CONVERSION CHARGES, BUILDING PLAN FEE HAD BEEN PAID AND BASED ON THAT, WHY THE GOVERNMENT CANNOT WAIVE THE PENALTY?

36). AFTER COLLECTING ALL THE FEES AND TAXES, WHY THE GOVERNMENT AND THE CORRUPT OFFICIALS AE BLACKMAILING THE COMMON MAN?

37).WHY NOT, A PIL BE LODGED TO TAKE ACTION ON THE GOVERNMENT OFFICIALS AND THE BUILDERS IN THE COURT OF LAW?

38). WHAT ACTION MUST BE TAKEN AGAINST THE ADVOCATE/LAWYER, WHO HAD GIVEN CLEAN CHIT/LEGAL OPINION ON SUCH PROPERTIES, WHICH NOW COMES UNDER AKRAMA-SAKRAMA?

39). WHAT ACTION MUST BE TAKEN AGAINST THE BANKS, WHO HAD FINANCED THESE PROPERTIES?

40). CAN I STOP THE EMI TO THE BANKS?

41). CAN I COMPLAIN AGAINST THE BANKS WITH RESERVE BANK OF INDIA?

42). CAN I COMPLAIN AGAINST THE BANK AND LODGE MY GRIEVANCE WITH THE BANKING OMBUDSMEN?

43). WHAT WILL HAPPEN TO THE INSURANCE POLICY TAKEN ON THE PROPERTY AND LOAN AND PAID SINGLE HIGH PREMIUM?

Central Registry of properties is operational to avoid multiple loans on the property

The Central Registry for Properties Operationalised

The Central Registry of Securitisation, Asset Reconstruction and Security Interest of India, A Government Company, Incorporated to prevent fraud on lending money on properties

The Central Registry has become operational with effect from today i.e.31st March,2011. The objective of setting-up the Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India, a Government Company, licensed under Section 25 of the Companies Act, 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). The Central Registry shall be under the superintendence and direction of the Central Registrar. Notifications for establishment of the Registry to be operated and maintained by the above company and for the purpose of appointment of Central Registrar have been issued by the Government today i.e. 31st March, 2011.

The Chairman and Managing Director, National Housing Bank shall hold additional charge as the Registrar of the Central Registry for a period of three months and he shall also be the Managing Director and Chief Executive Officer of the Government Company incorporated for the purpose of operating the Registration System.

Initially transactions relating to securitisation and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by Banks and “Financial Institutions,” as defined under the SARFAESI Act, are to be registered in the Central Registry. The Forms for registration and the fees for filing registration particulars as well as for taking a search in the Central Registry have been prescribed by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. The said Rules have been notified on 31st March, 2011. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property.

A central database of security interests created over property as well as assignment of such security interest by way of securitisation or asset reconstruction would make the secured lending activity in the financial market safer for the lenders. This would enthuse the secured creditors to provide credit to the productive sectors to help sustain the growth momentum of the Indian economy.

STAMP DUTY ON SALE AGREEMENTS REDUCED TO 0.1% FROM 1-4-11

THE GOVERNMENT OF KARNATAKA HAS REDUCED THE STAMP DUTY ON THE SALE AGREEMENT ON APARTMENTS FROM 01-04-2011 TO 0.1% ON THE SALE CONSIDERATION, BUT HAS INCREASED THE STAMP DUTY ON THE JOINT DEVELOPMENT AGREEMENTS.