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"Is it safe to buy land from a BIFR company?"

Get all your property-related queries sorted out here. Sunil K Ramani, director, Ramani Legal Services Pvt Ltd, will be happy to clarify your doubts.

I bought and registered a piece of property in Bangalore but subsequently was declared as under-valued. Here's how it happended.
The revenue department brought the real estate values to a naught by raising the guidance value for registration. This brought down the values by about 20 per cent to 70 per cent (for our area the price was brought down from Rs 3,000 per sq ft to Rs 1,500 per sq ft).
As I am one of the victims, I presented my actual case to the Secretary of the revenue department. After due consideration, the price was fixed at Rs 1,078 per sq ft in December 1998 (a reduction of 64.07 per cent). But, to honor my sale agreement, the property got registered in June 1998 for the actual value well over the guidance value of Rs 1,078 per sq ft.

The deputy commissioner of detection of under valuation issued a to pay stamp duty at Rs 3,200 per sq ft as against the fixed Rs 1,078 per sq ft. But, I submitted the facts and requested to drop the proceedings and send the original sale deed. Is it my mistake that the government took years to get up to reality and fix the actual values. I paid the stamp duty, which is above the guidance value of Rs 1,078 per sq ft.

Will the government direct the revenue department to release all the original sale deeds withheld for registering during 1998 or at least after the draft guidelines were announced?

— Rashmi Tanoj

The problem you have faced is very common. After a person has registered his document, the registarar is empowered to state that your document is under-valued. Wherever the valuation is absurd , it is advisable to go to court. However, you must go to court after verifying the expenses you will have to bear for the litigation .

I intend to purchase a residential accomodation from a BIFR company, The company officials have said that they are entitled to sell the flat and have complete fredom to enter into negotations, finalise price and provide peaceful transfer and possession on behalf of the company and they have a board resolution to this effect. They do not have to go to the board for a express approval of the sale price, should we reach agreement. Is it safe to buy from a BIFR company?

— Tarun

Although I do not deny the possiblity that the company officials may be entitled to sell the flat and do all other acts necessary to complete the deal , it is yet not advisable to buy such a property as there can be a possiblity that the liablities of the company may exceed the assets of the company and at a later stage it can create complications for you. Secondly, companies undergoing a financial problem could have raised a finance by using the property in question as a security.

I am an American citizen . I wanted to find out can I buy a home in India ? If yes, then what would be the procedure?

The laws relating to purchase of a property depends on whether a person is of Indian origin or not. If the person is of Indian origin then, the procedure is simpler. If however , a person is not of indian Origin then he has to file IPI-1 form. Kindly refer the relevant notification in www.indianpropertylaws.com.

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