PAPERS ON

1) SPECIAL LAWS OF KARNATAKA RELATING TO

IMMOVABLE PROPERTIES INCLUDING MASTER PLAN
2015 PREPARED BY THE BANGALORE DEVELOPMENT
AUTHORITY.

2) The Registration Act 1908

3) The Karnataka Stamp Act 1957

4) LIST OF DOCUMENTS OF TITLE OF DIFFERENT KINDS

OF PROPERTIES TO BE OBTAINED FROM THE PRESENT
OWNERS AND VERIFIED BEFORE THEIR PURCHASE/
ACQUISITION BY LEASE, MORTGAGE ETC

By
Arvind Raghavan
Advocate
Mobile # - 98450 04419
Email ID: [email protected]
1) SPECIAL LAWS OF KARNATAKA RELATING TO IMMOVABLE
PROPERTIES

SPECIAL LAWS AND REGULATIONS RELATING TO IMMOVABLE

PROPERTIES IN AND AROUND BANGALORE AND IN KARNATAKA

CHAPTER - 1:

INTRODUCTION

In this Article an attempt has been made to discuss the important provisions of
some of the important enactments made in the state of Karnataka which are related
to property matters.

Under each of these acts, the objects and reasons for their enactment and some of
the important Sections contained therein have been discussed.

CHAPTER - 2

THE KARNATAKA LAND REFORMS ACT 1961 AND KARNATAKA

LAND REFORMS RULES 1974

This Act, which extends to the whole state of Karnataka, was first published in the
Karnataka Gazette on 15/03/1962 and came into force on 02/10/1965 (Vide S.O.
3166 dated 13/09/1965).

1. SECTION 45 (TENANTS TO BE REGISTERED AS OCCUPANTS

OF LAND ON CERTAIN CONDITIONS):-

This Section provides that every person who was a permanent tenant,
protected tenant or other tenant or where a tenant has lawfully sub-let such
sub-tenant shall, with effect on and from the date of vesting, be entitled to
be registered as an occupant in respect of the lands which they held in that
capacity before the date of vesting and which he has been cultivating
personally.

2. SECTION 48-A (REGISTRATION AS AN OCCUPANT UNDER

SECTION 45 OF THE ACT}:-

Every person, entitled to be registered as an occupant under Section 45

may make an application to the tribunal constituted under Section 48 of the
Act before the expiry of a period of 6 months from the date of
commencement of the Karnataka Land Reforms (Amendment) Act 1978.
The tribunal, on receipt of the application shall take necessary steps

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 prescribed under the Act including inviting objections and ensuring the
appearance of the persons interested in the land and after considering
objections if any, pass an order entitling a person to be registered as an
occupant of the land. The order of the Tribunal shall be final and shall be
sent by the Tribunal to the Tahsildar and the parties concerned. The
Tahsildar shall thereafter issue a certificate in Form 10 in accordance with
Section 55 read with rule 21 of the Karnataka Land Reforms Rules 1974.
The Tahsildar shall forward a copy of the certificate issued under Section
55(1) to the Sub-Registrar, who shall thereafter register the same in
accordance with the provisions of the Registration Act, 1908.

NOTE:- (1) It must be mentioned that the persons who have been re-
gistered as occupants as mentioned above shall not be entitled to sell, gift,
exchange, , lease or assign the land granted to them under Section 55 of
the act for a period of 15 years from the date of the Land Tribunal order
confirming occupancy rights on the tenant. However, the occupant can
affect a partition of the land amongst the members of his family subject to
the condition that no fragment shall be created by affecting such a partition.
It is important to note that the restriction of 15 years for alienation from the
date of the grant order was amended to State that the period of 15 years
will now be reckoned from the date of order of the Land Tribunal. To this
effect, Section 61 of the Karnataka Land Reforms Act 1961 has been duly
amended with effect from 15/02/1999.

(2) It is also interesting to note that as far as the application of Karnataka

Scheduled Caste and Scheduled Tribes (Prohibition of transfer of certain
lands) Act, 1978 applies to occupancy rights granted under this section, the
Division Bench of the Hon’ble High Court in Mohammed Jaffer &
Another Vs State of Karnataka and others, 2003(1) Kar.L.J 337:
2003(1) KCCR 110 – has clearly held that the provisions of the aforesaid
Act doesn’t apply to persons conferred occupancy rights under the
provisions of this section even if they belong to Schedule Castes and
Schedule Tribes.

Important Case Laws:

a) In the case of Satyappa Lagama Parit v Land Tribunal, Hukkeri Taluk

and others, 1991(1) Kar. L.J 461 it has been held that the where the
applicant filed Form No.7 for two different lands and the land tribunal
allowed one application and rejected the other without properly recording
the statement of the petitioner, the tribunal was not justified in doing so
and the order is to be quashed.

b) In the case of Narasimha Jayadevarao v The Land Tribunal, Sirsi

Taluk, Uttara Kannada District and others, 2003(4) Kar.L.J 239, it was
held that where the claim was made by a sub-tenant against the claim made

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 by the main tenant on the basis of the entry in the land records, where it is
proved by the oral and documentary evidence that the sub-tenant was
cultivating the land personally on the appointed day, i.e., 01/03/1974, he is
entitled to be registered as an occupant notwithstanding the fact that the
presumption arising from entry in land records are in favour of the main
tenant.

c) In the case of A.Krishnamurthy v State of Karnataka, 1980(1) Kar.L.J

Sh.No.168(DB) it has been held that where two rival sets of persons made
applications for being registered as occupants and the Tribunal upheld the
claim of one set, and the landlord filed the writ petition contending that the
other set should have been registered as occupants is purely a matter
inter se between the rival claimants and the erstwhile landlord has no
interest in the matter and had no locus standi to challenge the decision of
the Tribunal.

3. SECTION 63(CEILING ON LAND)-

Under this Section, the Act provides the ceiling limits for holding land for
individuals, families, private trusts, education, religious or charitable
institutions, sugar factories, etc.

a) Sub-Section (1) of the said section provides that a person who is not a
member of a family or who has no family will not be entitled to hold land
whether as a owner, landlord, tenants or mortgagee with possession or
otherwise or partly in one capacity and partly in an another lands in excess
of the ceiling are which has been prescribed as 10 units for such a person
under sub-section (2) of the said section.

b) Sub-section (2) of the said section further provides that in the case of
family consisting of more than 5 members, the ceiling area will be ten unit
plus an additional two units for every member in excess of five as long as
the aggregate of lands held by the family does not exceed twenty units.

c) Sub-section 2A of the said section provides that a tenant as defined under

section 5(2)(v) of the Karnataka Land Reforms Act 1961 shall not hold
land in excess of 40 units.

d) Sub-section 3 of the said section clearly stipulates that in the case of a

family, the “Sridhana” land will be included in the aggregate of lands held
by all the family members.

e) Sub-section 7 of said section provides that No educational, religious or

charitable institution or society or trust, of a pubic nature, capable of
holding property, formed for an educational, religious or charitable purpose
shall hold land except where the income from the land is appropriated

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 solely for the institution or the society or the trust concerned. Where the
land is so held by such institution, society or trust, the ceiling area shall be
twenty units.

f) Sub-section 8 of the said section provides that No sugar factory shall hold
land except solely for purpose of research or seed farm or both. Where
land is held by a sugar factory for such purpose the ceiling area shall be
fifty units.

NOTE: The term “Unit” is defined under Section 2 sub-section 35-A of the
Karnataka Land Reforms Act, 1961 to mean [one acre (40.47 ares)] of A
Class land, the soil classification value of which is fifty paise (eight annas)
and above or an extent equivalent thereto consisting of one or more classes
of other land specified in Part A of Schedule 1 determined in accordance
with the formula in Part B of the said Schedule.

Schedule I
Part A
{See Section 29A)(35-A)}
Classification of Lands

A Class:

Lands having facilities for assured irrigation from such Government Canals and
Government Tanks as are capable of supplying water for growing two crops of
paddy (or one crop of sugarcane) in a year.

B Class:

(i) Lands having facilities for assured irrigation from such Government Canals
and Government Tanks as are capable of supplying water for growing only
one crop of paddy in a year.

(ii) Lands irrigated by such lift irrigation projects constructed and maintained
by the State Government as are capable of supplying water for growing two
crops of paddy (or one crop sugarcane) in a year.

C Class:

(i) Lands irrigated from any Government sources of irrigation, including lift
irrigation projects constructed and maintained by Government other than
those coming under A Class and B Class.

(ii) Lands on which paddy crop can be raised or areca crop is grown with the
help of rain water.

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(iii) Lands irrigated by lifting water from a river or Government Canal or
Government tank where the pumping installation or other device for lifting
water is provided and maintained by the land owner.

Notes: (1) Lands having facilities for irrigation from a Government Source where
the system of water supply is suitable for growing only light irrigated crop namely,
crops other than paddy and sugarcane shall come under this class.

(2) Lands growing irrigated garden crop will come under classes ‘A’, ‘B’
and ‘C’ as the case may be depending upon the source of irrigation and the system
of water supply.

D Class:

Lands classified as dry but not having any irrigation facilities from a Government
Source.

Note: Lands growing paddy or garden crops not coming under A Class, B Class or
C Class shall belong to this class.

PART B

Formula for determining equivalent extent of different classes

One Acre of A Class Land having soil classification value above 8 Annas =
1.3 Acres of A Class land having soil classification value below 8 annas =
1.5 Acres of B Class land having soil classification value above 8 annas =
2.0 Acres of B Class land having soil classification value below 8 annas =
2.5 Acres of C Class land having soil classification value above 8 annas =
3.0 Acres of C Class land having soil classification value below 8 annas =
5.4 acres of D class land

Case Law: In the case of Satyanarayana v State of Karnataka and

others 1997(1) Kar.L.J 710A it has been held that where the classification
of lands needs to determined for arriving at a ceiling limit, the criteria to be
employed for classifying a land as ‘A’ class land is to come to a conclusion
whether the land has an assured irrigation facilities from Government
canals therefore enabling the cultivator to grow two crops in a year and not
on the basis of what the cultivator is actually growing on the land.

4. SECTION 79A AND 79B:-

These two Sections deal with restrictions on holding or transfer of

agricultural lands.

(i) SECTION 79A:-

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 On and from the commencement of the Karnataka Land Reforms
(Amendment) Act, 1995, no person who or a family or a joint family which
has an assured annual income of not less than rupees two lakhs from
sources other than agricultural lands shall be entitled to acquire any land
whether as land owner, landlord, tenant or mortgagee with possession or
otherwise or partly in one capacity and partly in another.

'Family' for the purpose of this Section includes an individual, his or her
spouse, their minor sons and unmarried daughters, if any. A person or a
family or a joint family shall be deemed to have an assured annual income
of not less than rupees two lakhs from sources other than agriculture on any
day if such person or family or joint family had an average annual income
of not less than rupees two lakhs from such sources during a period of five
consecutive years preceding such day.

Case Law: In the case of Jose v Anantha Bhat, 1987(1) Kar.L.J 16(DB) it was
held that “Under sub-section (3) of Section 79-A(1) of Karnataka Land Reforms
Act, acquisition by a person who has assured income of Rs.12,000/- or more per
annum from sources other than agriculture (now the present limit is Rs.2,00,000/-)
would not be entitled to sustain such acquisition and as such the acquisition would
be null and void. Though sub-sections (3) and (1) read together do convey that
impression, such acquisition is not ipso facto become null and void. It will
become void, only when action is initiated suo motu or on the complaint of others
as provided under Section 82 of the said Act and after enquiry being held by the
specified officer under Section 83 of the Act if a declaration to that effect is made.

(ii) SECTION 79B:-

Prohibition of holding agricultural land by certain persons:-

With effect on and from the date of commencement of the Amendment

Act, ie., with effect from 01/03/1974 except as otherwise provided in this
Act, the following persons shall not be entitled to hold agricultural land:-

a) Any person not cultivating land personally

b) i) an educational, religious or charitable institution or society or trust, other
than an institution or society or trust referred to in sub-Section (7) of
Section 63, capable of holding property;
ii) a Company;
iii) an association or other body of individuals not being a joint family,
whether incorporated or not; or
iv) a co-operative society other than a co-operative farm.

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 Important Case Laws:

(1) In the case of Mysore Feeds Limited v The State of Karnataka and
Another, 1988(1) Kar.L.J 310(DB): ILR 1988 Kar.889(DB) it is held
that even though agricultural land may cease to be used for agriculture for
various reasons, inspite of the land being capable of being use for
agriculture and falling within land as definition of Section 2-A(18) of the
Act, the Deputy Commissioner was wrong in assuming that the land were
still agricultural in nature on the basis of the sole fact that the permission
for conversion was applied for.

(2) In the case of M/s.Manipal Industries Ltd vs State of Karnataka and

others, 1991(1) Kar.L.J.14 it was held that where a notification under
Section 3(i) of Karnataka Industrial Areas Development Board Act, 1961
was issued declaring certain lands as an “Industrial Area” and aforesaid
company was allotted such land, a subsequent notification by a competent
authority under Section 79B of the Karnataka Land Reforms Act, 1961
stating that the company is not entitled to hold these land under the
provisions of the aforesaid Section is bad in law.

5. SECTION 80:-

Transfers to non-agriculturists barred

a) No sale (including sales in execution of a decree of a civil court or for

recovery of arrears of land revenue or for sums recoverable as arrears of
land revenue), gift or exchange or lease of any land or interest therein, or

b) no mortgage of any land or interest therein, in which the possession of the

mortgaged property is delivered to the mortgagee, shall be lawful in favour
of a person:-

i) who is not an agriculturist, or

ii) who being an agriculturist holds as owner or tenant or partly as owner and
partly as tenant land which exceeds the limits specified in Section 63 or
64; or

iii) who is not an agricultural labourer; or

iv) who is disentitled under Section 79A or Section 79B to acquire or hold any
land;

provided that the Assistant Commissioner, having jurisdiction over the area or
any officer not below the rank of an Assistant Commissioner authorised by the
State Government in this behalf, in respect of any area may grant permission

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 for such sale, gift or exchange, to enable a person other than a person
disentitled to acquire or hold land under Section 79-A or Section 79B who
bonafide intends taking up agriculture to acquire land on such conditions as
may be prescribed.

Agreement to sell:

In the case of Shivanappa Vs Veerupakshappa ILR 1983 (1) Kar 702 (DB)
it has been held that an agreement to sell agricultural land even to a non-
agriculturist is not a contract which contravenes the provisions of the act and
there is no bar in the act for entering into such agreement. It is further been
held that the question has to whether the intending purchaser is an agriculturist
or not is not at all a relevant issue for consideration in a suit for specific
performance of an agreement to sell in respect of an agricultural land.

It has been held in the case of Nigappa Durgappa Vs Hanumathappa

Balappa and Another (1982 (1) Kar.L.J.419.. AIR 1982 NOC 294) that
Section 80 of the Act does not prohibit an agreement of sale between the
landowner and a non agriculturist. What it prohibits is a non agriculturist of
the categories specified in that section purchasing an agricultural land. But he
too can purchase after obtaining necessary permission as provided in the
proviso. Hence, the agreement cannot be construed as one opposed to public
policy or contrary to law.

Besides, there is no provision in the Act for a reference of such an issue either
to the Assistant Commissioner or to any other authority.

6. SECTION 109:-

Certain lands to be exempt from certain provisions:-

1) Subject to such rules as may be prescribed and the provisions of the

Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of
1963), the State Government may, by notification, exempt any land in any
area from the provisions of Sections 63, 79A,79B or 80 to be used for:-

i) industrial development, the extent of which shall not exceed twenty

units;

ii) educational institutions recognised by the State or Central Government to

be used for non-agricultural purpose the extent of which shall not exceed
four units;

iii) places of worship to be specified by Government by notification which are

established or constructed by a recognised or registered body for non-
agricultural purpose, the extent of which shall not exceed one unit;

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iv) a housing project, approved by the State Government the extent of
which shall not exceed ten units.

v) the purpose of horticultural including floriculture and agro based

industries the extent of which shall not exceed twenty units;

Provided that the Deputy Commissioner may also exercise the powers
of the State Government under this sub-section, subject to the
restrictions and in the manner specified therein, in respect of the land
to be used for:

j) industrial development, the extent of which shall not exceed tne units;

ii) educational institutions recognised by the State or Central Government to

be used for non-agricultural purpose the extent of which shall not exceed
two units;

iii) places of worship to be specified by Government by notification which are

established or constructed by a recognised or registered body for non-
agricultural purpose, the extent of which shall not exceed one-fourth of a
unit;

iv) a housing project, approved by the State Government the extent of

which shall not exceed ten units.

v) the purpose of horticultural including floriculture and agro based

industries the extent of which shall not exceed ten units;

(1-A) notwithstanding anything contained in sub- Section (1) of Section 109, the
State Government may in public interest and for reasons to be recorded in
writing (by notification and subject to the provisions of the Karnataka Town and
Planning Act, 1961 [Karnataka Act 11 of 1963] and such restrictions and as may
be specified by it, exempt any extent of land from the provisions of Sections 63,
79A, 79B or 80) for any specific purpose.

Provided that the Deputy Commissioner may subject to the restrictions and the
manner specified in this sub-section exercise the power of the State Government to
grant exemptions to an extent not exceeding half hectare of land.

(2) Where any condition or restriction specified in the Notification under sub-
section (1) has been contravened, the State Government or as the case may be, the
Deputy Commissioner may, after holding an enquiry as it or he deems fit, cancel
the exemption granted under that sub-section and the land in respect of which such

10
cancellation has been made, shall, as penalty be forfeited to and vest in the State
Government free from all encumbrances. No amount is payable therefore.

NOTE: For the purpose of this Section, a "Unit" shall have the meaning assigned
to it under Section 2(35-A) of the Act. Under the said section, a unit has been
defined as being equal to one acre (40.47 ares) of A Class land, the soil
classification value of which is fifty paise (eight annas) and above or an extent
equivalent thereto consisting of one or more classes of other land specified in Part
A of Schedule 1 determined in accordance with the formula in Part B of the said
Schedule.

Case Law: Boyce BC v Huvuppa, 1983 (2) Kar.L.J Sh.N.41

CHAPTER - 3
THE KARNATAKA LAND REVENUE ACT 1964

1. This act, which came into force with effect from 01/04/1964 by a
Notification No.RD55 LAO 64, dated 19/03/1964 which appeared in the
Karnataka Gazette on that date extends to the whole state of Karnataka.
The Act lays down the under which the various Revenue authorities
including the Divisional Commissioner, Deputy Commissioner, Special
Deputy Commissioner, Assistant Commissioners, Tahsildars and Special
Tahsildars, Revenue Inspectors, Village Accountants, Survey Officers and
other revenue officers shall be appointed, the duties to be performed by
them and powers conferred on them for that purpose. The Karnataka
Revenue Appellate Tribunal is also constituted under Section 40 of the Act.
In the development of land, Section 95(2) which deals with the use of
agricultural land for other purposes is elaborated below.

2. SECTION 95 CONVERSION:-

Section 95: Uses of agricultural land and the procedure for use of
agricultural land for other purpose:

(1) Subject to any law for the time being in force regarding erection of
building or construction of wells or tanks, an occupant of land assessed or
held for the purpose of agriculture is entitled by himself, his servants,
tenants, agents, or other legal representatives, to erect farm buildings,
construct wells or tanks, or make any other improvements thereon for better
cultivation of the land or its more convenient use for the purpose aforesaid.

(2) If any occupant of land assessed or held for the purpose of agriculture
wishes, to divert such land or any part thereof to any other purpose, he shall
notwithstanding anything contained in any law for the time being in force
apply for permission to the Deputy Commissioner who may, subject to the

11
provisions of this section and the rules made under this Act, refuse
permission or grant it on such conditions as he may think fit;

Provided that the Deputy Commissioner shall not refuse permission for
diversion of such land included in the Outline Development Plan or the
Comprehensive Development Plan published under the Karnataka Town and
Planning Act, 1961 (Karnataka Act 11 of 1963), if such diversion is in
accordance with the purpose of land use specified in respect of land in such
plan;

Provided further that in Dakshina Kannada District, subject to any law for the
time being in force regarding erection of buildings or the construction of
wells or tanks, an occupant of dry (punja) land wet land or garden land who
is not:-

(a) a person registered or liable to be registered as an occupant of such

land under Section 48-A of the Karnataka Land Reforms Act, 1961
(Karnataka Act 10 of 1962); or

(b) a grantee of such land under Section 77 of the said Act, may,
without obtaining the permission required under this sub-section
and notwithstanding anything contained therein, divert such land or
part thereof to any other purpose after sending a prior notice in that
behalf, in the prescribed form to the Tahsildar and paying the
prescribed manner, the fine prescribed under sub-section (7).

(3-B) Notwithstanding anything contained in this section, no permission shall

be granted to divert any land or part thereof assessed or held for the purpose
of agriculture lying within the limits of the Green Belt to any other purpose.

(4) Condition may be imposed on diversion in order to secure the health,

safety and convenience, and in case of land which is to be used as building
sites, in order to secure in addition that the dimensions, arrangement and
accessibility of the sites are adequate for the health and convenience of
occupiers or are suitable to the locality and do not contravene the provisions
of any law relating town and country planning or the erection of building.

(5) Where the Deputy Commissioner fails to inform the application of his
decision on the application made under sub-section (2) within a period of
four months, from the date of receipt of application, the permission applied
for shall deemed to have been granted.

(6) Unless the Deputy Commissioner shall, in any particular instance

otherwise direct, no application under sub-section (2) shall be recognised
unless it is made by the occupant.

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 (6-A) In Dakshina Kannada District, Kodagu District and Kollegal Taluk of
Mysore District, where any land assessed or held for purpose of agriculture
has been diverted or used for any other purposes, before the date of
commencement of the Karnataka Land Revenue (Amendment) Act, 1981, the
land so used together with the land appurtenant to any building (other than a
farm house) therein, not exceeding three times the built area of such building,
shall with effect from such date be deemed to have been permitted to be used
for purposes other than agriculture.

(7) When any land assessed or held for the purpose of agriculture is
permitted under sub-section (2) or is diverted under the provisos to the said
sub-section or is deemed to have been permitted under sub-section (5) or
sub-section (6-A), to be used for any purpose unconnected with agriculture,
the Deputy Commissioner may, subject to such rules as may be made by the
State Government in this behalf, require the payment of a fine. No
assessment shall be leviable on such land thereafter except under sub-section
(2) of Section 83.

Explanation:- For the purpose of this section, “Occupant” includes a

mulgeni tenant or a permanent tenant.

IMPORTANT CASE LAWS:

A) Conversion of agricultural land into non-agricultural land

In the case of Mullikarjun Co-Operative Housing Society Limited,

Hubli Vs State of Karnataka and others – 1995 (6) Kar. L.J.46C, it was
held that where the conversion of agricultural land to non-agricultural uses
and purposes was permitted but an order without imposing any conditions,
such conversion cannot lapse unless it is withdrawn. The Hon’ble Court
further held that even after conversion, if the land is used for agricultural
purpose, it will not make the land agricultural.

Further, the Hon’ble Court held that any land if converted for non-
agricultural purpose cannot be treated as an agricultural land in the absence
of any order withdrawing the demand or canceling the permission granted
under Section 95(2) of the Karnataka Land Revenue Act. 1964.

B) Reasons for Refusal:

In the case of State of Karnataka Vs Ryots Agricultural Produce Co-

opertive Marketing, 1986 (1) Kar.L.J.237 it was held that the Special
Deputy Commissioner cannot go into the qualification or disqualification
of a person to hold agricultural land at the time of granting permission
since the Government has its own machinery to deal with the breach of the

13
 laws and the Special Deputy Commissioner acting under Section 95 of the
Act cannot assume those functions.

C). Interpretation of Section 14 of Town and Country Planning Act,

In the case of State of Karnataka and Another Vs N.K.Agarwal and

Another, 1986 (1) Kar.L.J.258, while going into the question whether
permission for granting conversion can be refused on the ground of
infringement under Section 14 of the Town and Country Planning Act it
was held that the Deputy Commissioner need not concern himself at the
stage of granting permission under Section 95 of the Karnataka land
Revenue Act as to whether the Town Planning Authority may or may not
give permission which the owner of the land may seek in terms of the
approved outline development Plan.

D) Land Use

In the case of The Karnataka State Judicial Employees’ House Building

Co-Operative Society Limited, Bangalore and Others Vs State of
Karnataka and Others – 1997 (7) Kar.L.J.573 –A:IL 1997 Kar.3419 it
was held that the written permission of the Deputy Commissioner is
mandatory under the act for conversion, even if the agricultural land is
earmarked for residential use in the Comprehensive Development Plan
published under Section 13(4) of the Karnataka Town and Country
Planning Act, 1961.

E) Permission to use agricultural land for non-agricultural purposes:

In the case of State of Karnataka and Others Vs Shankara Textile Mills

Limited, AIR 1995 SC 234 it was held that permission to use agricultural
land for non-agricultural purposes is mandatory and required under the
provision of Section 95 since,

1) The obvious purpose of Section 95(2) is to prevent discriminate

conversion of agricultural land for non-agricultural use and to
regulate and control conversion of agricultural land into non-
agricultural land.

2) In a country where the source of livelihood of more than 70 per cent

of the population is agriculture, the restriction placed by the
Revenue Act is quite understandable. The provision has, therefore,
to be construed mandatory and given effect as such.

3) Mere fact that at the relevant time, the land was not used for
agricultural purpose or purposes sub-servient thereto, that it was
used for non-agricultural purpose, assuming it to be so, would not

14
 convert the agricultural land into non-agricultural land for the
purpose either of the Revenue Act or of the Karnataka Land
Reforms Act. To hold otherwise would defeat the object of both
Acts and would in particular, render the provisions of Section 95(2)
of the Revenue Act, nugatory. Such an interpretation is not
permissible by any rule of the interpretation of statues.

F) Time bound disposal of application for conversion

In the case of Robert D’Sliva Vs Deputy Commissioner, Madikeri and

Others, 1994 (4) Kar.L.J.602 it was held that under Section 95(5) of the
Act, the time bound disposal of an application for conversion is mandatory
and once the period is elapsed, deemed permission accrues to the applicant
automatically and it is not permissible to thereafter reopen the matter and
find fault with the application. It was further held the court is precluded
from going through any of the these questions

G) Deemed Conversion:

In the case of Habeeb Khandasari Industries Vs Karnataka Appellate

Tribunal and Another, 1987 (1) Kar.L.J.57 while going to the question
that the conversion fine is to be paid on the demand or the date of
conversion, the court held that as follows:

The clear effect of Section 95(5) of the Act is that conversion shall be
deemed to have granted on the expiry of the four months from the date of
application. Thereafter, there is nothing further to done by the party
concerned. He could proceed to use the land for non-agricultural purpose
as if permission had been granted, as such permission stands granted by the
force of the provisions of the Act itself. Further, it is for Deputy
Commissioner concerned to collect the conversion fine. If the Deputy
Commissioner concerned fails to demand and collect the conversion fine at
the rate prevailing on the date of deemed conversion, the party cannot be
blamed.

The rate which was in force on the date on which the permission for
conversion was deemed to have been granted alone is applicable.

3. SECTION 96:-

Section 96 deals with the penalty for using agricultural land for other
purpose without obtaining the permission of the Deputy Commissioner
under Section 95(2) of the Act. Under Section 96(4), the Deputy
Commissioner has the powers to compound such unauthorised diversion or
use on payment of prescribed amount as mentioned in the Table under Rule
107(A) of the Karnataka Land Revenue Rules 1966..

15
 CHAPTER 4

THE KARNATAKA LAND GRANT RULES 1969

These rules came into force with effect from 06/11/1969. Some of the
important rules thereunder are briefly discussed below:-

1. RULE 3:-

Under Rule 3 of these rules, a list of lands available for disposal in any
village shall be prepared by the Tahsildar exercising jurisdiction over the
same in with the procedure laid down therein. These lists shall be revised
and bought upto date on or before 1st day of July each year.

2. RULE 4:-

Rule 4(1) of these rules give the following persons eligibility for grant of
land for agricultural purposes:-

i) any person who attains age of 18

ii) whose gross annual income does not exceed rupees eight thousand and
iii) who is either a bona fide agriculturist cultivating the land personally or has
bona fide intention to take up personal cultivation and
iv) who is not a sufficient holder

However, in the case of ex-servicemen and soldiers, land may be granted,

if the gross annual income of the applicant exceeds rupees eight thousand
but less than rupees twenty thousand.

3. RULE 4(2) provides that any person may be granted land which is adjacent
or close already held by him on the collection of market value as on the
date of grant to be determined by the authority granting the land, if such
authority is of the opinion that the land is required for better enjoyment or
better cultivation of the land already held by the applicant. However, no
such grant shall be made on an extent exceeding in the case of wet or
garden land half hectare and in the case of dry land one hectare and that the
total extent of land held after such grant does not exceed the ceiling area
according to the Karnataka Land Reforms Act, 1961.

CASE LAW: In the case of Radha Bai v Smt.Shashikala and others

1998(2)Kar.LJ 62C; ILR 1998 KAR 302, it was held that if there is more than
one application for grant of land, all applications must be considered and disposed
off together by the authority and in case the authority has considered one
application for grant and disposed a rival application without giving a notice to the
applicant, the authority is deemed to be acted illegally.

16
4. RULE 5: Reservations:-

Rule 5(1) provides that the land available for disposal in any village shall
be granted observing the reservation indicated below:-

(i) Ex-Servicemen and Soldiers 10 per cent

(ii) Persons belonging to Scheduled and Scheduled Tribes50 per cent
(iii) Backward Tribes 5 per cent
(iv) Political Sufferers 10 per cent
(v) Others25 per cent

5. RULE 5(2) provides that where the extent reserved under (ii) and (iii) is
in excess of the extent that can be granted to the person belonging to those
categories, the excess land shall be with the approval of the Deputy
Commissioner be disposed of among persons in category (v) above ie.,
others.

6. RULE 5(3): provides that where the land available for disposal in village
is less than four hectares, the whole of such land shall be disposed of to
persons belonging to the Scheduled Castes and Scheduled Tribes who are
ordinarily residents of such village or who reside in the neighboring village
and where no persons belonging to Scheduled Castes and Scheduled Tribes
reside therein, it shall be disposed of to others.

7. Rule 6:- Defines the order of priority in disposing of land among persons
belonging to Category (iv) of sub-rule(1) of Rule 5, the following order of
priority shall be observed:-

i) Landless persons residing in the village;

ii) Insufficient holders residing in the village;
iii) Landless persons residing in other village in the same or adjacent taluk;
iv) Others

Provided that when Government directs under Section 71 of the Act that in
any particular area Government land shall be reserved for grant to
displaced persons and tenants affected by any Government Project,
provisions of Rules 5 and 6 will not apply.

8. RULE 9:- Conditions of grant and restriction as to alienation:

Sub-Rule (1) of Rule 9 provides that the grant of land under these rules for
agricultural purposes shall be subject to the following conditions, namely;

i) the grantee shall not alienate the land for a period of fifteen years from the
date of taking possession; provided that he may, after a period of five

17
 years, with the previous permission of, and subject to the provisions of the
Karnataka Scheduled Caste and Scheduled Tribes (Prohibition of transfer
of certain lands) Act, 1978 (Karnataka Act 2 of 1979) and such conditions
as may be specified by the Deputy Commissioner, alienate the whole or
any portion of such land.

CHAPTER - 5

THE KARNATAKA LAND RECORD OF RIGHTS ACT 1956

This act was first published in the Karnataka gazette on 05/06/1958 and it
extends to the whole state of Karnataka.

1. Section 4 of the Act:

According to Section 4 of the act, Record of Rights shall be maintained in

every village which shall contain the following particulars.

a) The names of the persons who are holders, occupants, owners, mortgages,
landlords or tenants of the land or assignees of the rent or revenue thereof;

b) The nature and extent of the respective interests of such persons and the
conditions or liabilities (if any) attaching thereto;

c) The rent or revenue (if any) payable by or to any of such persons

d) Such other particulars as the State Government may prescribe by rules

made in this behalf.

On completion of preparation of Record of Rights in respect of any village

such completion shall be notified in the official gazette.

2. Section 5:-

Under sub-Section (1) any person acquiring by succession, survivorship,

inheritance, partition, purchase, mortgage, gift, lease or otherwise, any
right as, occupant, owner, mortgagee, landlord or tenant of the land, or
assignee of the rent or revenue thereof, shall report orally or in writing his
acquisition of such right to the Village Accountant within three months
from the date of such acquisition, and the said Village Accountant shall at
once give a written acknowledgement of the receipt of such report to the
person making it.

Provided however, the report to be made shall be optional where the right
consists of an easement or a charge not amounting to a mortgage of the

18
 kind specified in Section 100 of the Transfer of Property Act, 1882
(Central Act IV of 1882).

In case of a person acquiring the right is a minor or other wise disqualified,

his guardian or other person having charge of his property shall make the
report to the Village Accountant;

However, a person acquiring a right by virtue of a registered document

shall be exempted from the obligation to report to the Village Accountant.

3. Section 6:-

Under Section 6 of the Act, it shall be the duty of every Village

Accountant to maintain a register of mutations and make an entry therein
of every acquisition of rights made under Sections 5(1), Section 5(2) or
5(4) of the Act.

4. Section 13:-

Under Section 13 of the Act, it has been provided that subject to the rules
and the payment of such fees as the state Government may from time to
time prescribe in this behalf, all maps, the record of rights and the register
of mutations shall be kept opened for the inspection of the public at
reasonable hours and certified copies and extracts shall be given to all
persons applying for the same.

CHAPTER - 6

KARNATAKA SCHEDULED CASTES AND SCHEDULED TRIBES

(PROHIBITION OF TRANSFER OF CERTAIN LANDS) ACT, 1978

I. This act, which received the assent of the President of India on 18/12/1978
was first published in the Karnataka Gazette extraordinary on the 1st day of
January 1979. The provision of this act where mainly incorporated for
giving effect to the policy of the state towards securing the principles laid
down in the Article 46 of Constitution of India.

II. Definition of "Granted Land" u/s 3(1)(b) of the Act

“Granted Land" means any land granted by the Government to a person

belonging to any of the Scheduled Castes or the Schedules Tribes \and
includes land allotted or granted to such persons under the relevant law for
the time being in force relating to a agrarian reforms or land ceiling or
abolition of inams, other than that relating to hereditary offices or rights
and the word "granted" shall be constructed accordingly.

19
III. Prohibition of transfer of granted lands u/s 4 of the Act:-

1. Notwithstanding anything in any law, agreement, contract or instrument,

any transfer of granted land made either before or after the commencement
of this Act, in contravention of the terms of grant of such land or the law
providing for such grant, or sub-Section (2) shall be null and void and no
right, title or interest in such land shall be conveyed nor be deemed ever to
have conveyed by such transfer..

2. However, after the commencement of this Act, any person cannot transfer
or acquire by transfer any granted land under this act without the previous
permission of the Government.

3. The provisions of sub-Sections(1) and (2) enumerated above shall apply

also to the sale of any land in execution of a decree or order of a civil court
or of any award or order of any other authority.

IV. Resumption and Restitution of granted lands u/s 5 of the Act:-

1. Where, on application by any interested person or information given in

writing by any person or suo motu, and after such enquiry as he deems
necessary, the Assistant Commissioner is satisfied that transfer of any
granted land is null and void under sub-Section (1) of Section 4, he may:-

a) by order take possession of such land after evicting all such persons in
possession thereof in such manner as may be prescribed:

Provided that no such order shall be made except after giving the person
affected a reasonable opportunity of being heard;

b) restore such land to the original grantee or his legal heir. Where it is not
reasonably practicable to restore the land to such grantee or legal heir, such
land shall be deemed to have vested in the Government free from all
encumbrances.

The Government may grant such land to a person belonging to any of the
Scheduled Castes or Scheduled Tribes in accordance with the rules relating
to grant of land.

1A After an enquiry referred to in sub-section (1) the Assistant Commissioner

may, if he is satisfied that transfer of any granted land is not null and void
pass an order accordingly].

2. Subject to the orders of the Deputy Commissioner under Section 5A, any
order passed under sub-Section (1) of Section 5 shall be final and shall not
be questioned in any court of law and no injunction shall be granted by any

20
 court in respect of any proceedings taken or about to be taken by the
Assistant Commissioner in pursuance of any power conferred by or under
this Act.

3. For the purpose of this Section, where any granted land is in possession of
a persons, other than the original grantee or his legal heir, it shall be
presumed, until contrary is proved, that such person has acquired the land
by transfer which is null and void under provisions of sub-Section(1) of
Section 4.

V. Appeal to the Deputy Commissioner u/s 5A of the Act:

1) Any person aggrieved by an order passed after the commencement of the

Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer
of certain lands) (Amendment)Act, 1984 by the Assistant Commissioner to
take possession of land under clause (a) of sub-Section (1) of Section 5 or
to restore the land under clause (b) of the said sub-Section may prefer an
appeal to the Deputy Commissioner exercising relevant jurisdiction within
a period of three months from the date on which the order was
communicated to him.

Provided that the Deputy Commissioner may admit an appeal preferred

against such order after the period referred to in sub-Section (1), if satisfied
that the appellant had sufficient cause for not preferring the appeal within
that period.

Provided further that the Deputy Commissioner shall admit an appeal

against an order passed by the Assistant Commissioner before the date of
such if, on the said date, a writ petition preferred against such order or an
appeal preferred against the order passed in such writ petition is pending in
any court.

1A) Any person aggrieved by an order passed after the commencement of the
Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer
of Certain Lands) (Amendment) Act 1992 by the Assistant Commissioner
under sub-section (1A) of section 5, may prefer an appeal to the Deputy
Commissioner having jurisdiction within a period of three months the date
on which the order was communicated to him.

Provided that, the Deputy Commissioner may admit an appeal preferred

against such order after the period referred to in sub-section (1A) if
satisfied that the appellant had sufficient cause for not preferring the appeal
within that period.

Provided further that, the Deputy Commissioner shall admit an appeal

against an order passed by the Assistant Commissioner holding that

21
 transfer of any granted land is not null and void before the date of such
commencement, if, on the said date, a writ petition preferred against such
order or an appeal preferred against the order passed in such writ petition is
pending in any Court.

2) The Deputy Commissioner shall dispose of the appeal in the prescribed

manner and the order passed by him shall be final.

VI. Prohibition of registration of transfer of granted lands u/s 6 of the

Act:

Notwithstanding anything in the Registration Act, 1908, on or after the of

this Act, no registering officer shall accept for registration of any document
relating to the transfer, or to the creation of any interest in, any granted land
included in a list of granted lands furnished to the registering officer except
where such transfer is in accordance with this Act or the terms of the grant
of such land or law providing for such grant..

VII Exemption u/s 7 of the Act:

Nothing in this Act shall apply to the transfer of granted lands in favour of
the Government, the Central Government, a local authority or a bank either
before or after the commencement of this Act.

VIII. Penalty, etc u/s 8 of the Act

1) Whoever acquires any granted land in contravention of the provisions of

sub-section (2) of Section 4 shall, on conviction, be punished with
imprisonment which may extend to six months or with fine which may
extend to two thousand rupees or with both.

2) Notwithstanding anything in the Code of Criminal Procedure, 1973, the

offence punishable under sub-section (1) shall be cognizable.

Important Case Laws:

1) ILR 2002 (2) Kar 2670: Where the nature of the grant is disputed, only
the mutation entries cannot be relied upon. The authorities should satisfy
themselves as to the person to whom the grant was made and conditions of
grant etc.

2) In the case of Mohammed Jaffer & Another Vs State of Karnataka and

others, 2003(1) Kar.L.J 337: 2003(1) KCCR 110 – the Hon’ble Court
went into the question whether the occupancy rights granted under the
Karnataka Land Reforms Act fall within the definition of granted land?
The Hon’ble came to conclusion that since the conferment of occupancy

22
 rights on the tenant is subject to certain restrictions imposed in the
certificate of registration issued under Section 55 of the Land Reforms Act,
such land cannot be termed as granted land and the provisions of the PTCL
Act have no application.

3) 1991 (4) KLJ 38 – Darkhast Register and Record of Rights can be looked
into if Grant Certificate is not available.

4) Adverse possession in the case of granted lands coming under the

provision of the Act:

a) Attention is drawn to the judgment of the division bench of the

Honorable High Court of Karnataka, in the case of V.Muniswamy Vs
Deputy Commissioner, Kolar and Others (1993 (3) Kar.L.J. 346 (DB)
where the Honorable High Court of Karnataka has held that ….. “If a
transferee of land covered by the sweep of the Act had completed
adverse possession for a period of 30 years prior to the date of coming
into force of the Act then only he would not be touched. All other
transfers, otherwise voidable, but falling within Section 4(1) of the Act
would be liable to be proceeded with under the Act. Only those
transfers of lands by scheduled castes persons which have taken place
on or before 01/01/1949, i.e., when transferees have completed adverse
possession prior 01/01/1979 would be saved from the sweep of the Act”.

b) Attention is also drawn to the judgment passed by the Honorable

Supreme Court in Sunkara Rajyalakshmi Vs State of Karnataka (ILR
1984 (2) KAR 1) wherein the Supreme Court has held “The Karnataka
Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of
Certain Lands) Act, 1978 will not apply where the transferees have
perfected their title in the granted land by prescription of long and
continuous enjoyment before the commence of the Act; the period of
limitation which has to be taken into account for the purpose of
determining whether the title has been perfected by prescription is that
which runs against the State Government and therefore it would be 30
years and not 12 years”.

c) NOTE: In view of the aforesaid judgments, it is clear that the

applicability of Section 4 and 5 of the Karnataka Scheduled Castes and
Scheduled Tribes (PTCL) Act, 1978 will not arise in respect of the
aforesaid property, since the original grantee effected the transfer of the
aforesaid property to the original transferee before 01/04/1949 and divested
himself of possession of the property sold by him on the date of transfer.

23
 CHAPTER - 7

KARNATAKA (RELIGIOUS & CHARITABLE INAMS ABOLITION)

ACT, 1955

1) This act which received assent of the President of India on 19/08/1955 was
first published in the Karnataka gazette on the 01/09/1955. This act applies
for whole of State of Karnataka except Bellary district.

2) This act applies to:

i) religious inams including the Sringeri Jahgir; and

ii) charitable inams.

Explanation: `Religious inam' or `charitable inam' means a grant of a village,

portion of a village or land entered in the register of inams, quit rent register,
alienation register or any revenue account maintained by or under the authority of
Government as Devadaya inam or Dharmadaya inam as the case may be.

3) Section 1(4) and Section 2, 34 and 36 shall come into force at once and the
rest of this act shall come into force in minor inams other than such
devadaya inams in unalienated villages in such date, as the Government
may by notification specify, and in any inam village, on such date as the
Government may by notification specify in respect of such inam village.

CHAPTER - 8

KARNATAKA (PERSONAL AND MISCELLANEOUS) INAMS

ABOLITION ACT, 1954

1) This act which received assent of the President of India on 15/03/1955 was
first published in the Karnataka gazette on 19/03/1955. This Act applies
for whole of the State of Karnataka.

2) This Act applies to:

i) personal inams including the Yelandur Jahgir but excluding any

enfranchised inam in respect of which full land revenue assessment is
payable.

ii) Khayamgutta Villages;

iii) Kodagi and Bawadi Daswandam inams;

iv) Miscellaneous service inams including artizan inams and excluding village
service inams held by Shanbhogs & Patels, Thotis, Talaris and Nirgantis.

24
3) Under Section 3 of this Act from the date of the publication of the
notification in the official gazette the lands granted under the aforesaid
inams shall vest with the State Government. Such lands shall be regranted
in accordance with the provisions of this Act.

CHAPTER - 9

KARNATAKA CERTAIN INAMS ABOLITION ACT, 1977 (ACT NO.10 OF

1978)

This act which received the assent of the President of India on 03/05/1978
was first published in the Karnataka gazette extraordinary on 08/05/1978.
Section 2 of this act which determines its applicability prescribes that this
act shall apply to all inams including inams in enclave villages other than
those referred to in the following Acts:-

1. The Bombay Personal Inam Abolition Act 1952 (Bombay Act No.XLI of
1953).

2. The Bombay Service Inams (Useful of Community) Abolition Act, 1953

(Bombay Act No.LXX of 1953).

3. The Bombay Merged Territories and Areas (Jagir Abolition) Act, 1953
(Bombay Act No.XXII of 1954).

4. The Bombay Merged Territories Miscellaneous Alienation Abolition Act,

1955 (Bombay Act XXII of 1955).

5. The Hyderabad Abolition of Inams Act, 1955 (Hyderabad Act VIII of

1955).

6. The Madras Estate (Abolition and Conversion into Ryotwari) Act, 1948
(Madras Act XXVI of 1948).

7. The Karnataka (Personal and Miscellaneous) Inams Abolition Act, 1954

(Karnataka Act 1 of 1955).

8. The Karnataka (Religious and Charitable) Inams Abolition Act, 1955

(Karnataka Act 1 of 1955).

9. The Bombay Paragana and Kulkarni Vatans (Abolition) Act, 1959

(Bombay Act LX of 1950).

10. The Karnataka Village Officers Abolition Act, 1961 (Karnataka Act 14 of
1961).

25
11. The Karnataka (Sandur Area) inams Abolition Act, 1976, (Karnataka Act
54 of 1976).

Section 4 of this act prescribes that with effect from the appointed date i.e,.
08.05.1978 the inam tenure of all inams and minor inams to which this Act
applies under Section 2 shall stand abolished.

Section 5(1) of this Act provides that with effect from the appointed date
every tenant of the inamdar or holder of a minor inam shall be entitled to
be registered as an occupant of lands in respect of which he was tenant
immediately before first day of March 1974.

CHAPTER - 10

THE KARNATAKA VILLAGE OFFICES ABOLITION ACT,

1961(KARNATAKA ACT NO.14 OF 1961)

1. This act which received the assent of the President of India on 08/07/1961
was first published in the Karnataka gazette on 20/07/1961.

It extends to the whole of the State of Karnataka.

2. Some Important definitions under this Act:

(i) Section 2(1)(a): - "Appointed Date means the date of appointed under sub-
Section (3) of Section 1 i.e., 20/07/1961.

(ii) Section 2(1)(b): - "Authorised holder" means a person in whose favour a

land granted or continued in respect of or annexed to a village office by the
State or a part thereof has been validly alienated permanently whether by
sale, gift, partition or otherwise under the existing law relating to such
village offices.

(iii) Section 2 (1)(f):- "existing law relating to the village office" includes any
enactment, ordinance, rule, bye-law, regulation, order, notification farman,
hukum vat hukum or any other instrument or any custom or usage having
the force of law, relating to village office which may be in force
immediately before the appointed date.

(iv) Section 2(1)(g):- "holder of a village office" means a person having an

interest in a village office under and existing law relating to such office.

(v) Section 2(1)(h):- "inferior village office" means every village office of
lower degree than that of the Patel of Village Accountant.

26
(vi) Section 2(1)(n):- "Village office" means every village office, to which
emoluments have been attached and which was held hereditarily before the
commencement of the Constitution under the existing law relating to the
village office, for the performance of duties connected with the
administration or collection of the revenue or with the maintenance or
order of with the settlement of boundaries or other matter of civil
administration of a village whether the services originally appertaining to
the office continue or have ceased to be performed or deemed and by
whatsoever designation the office may be locally known.

3. Section 5(1) of the Act provides that in case of lands resumed under
Section 4(3) they shall be granted to a person who was the holder of the
village office immediately prior to the appointed date (hereinafter referred
to as the holder) on payment, by or on behalf of such holder to the State
Government of an occupancy price as prescribed under that Section.

4. Section 5(3) provides that the occupancy or the ryotwari patta of the land,
as the case may be re-granted under sub-section (1) shall not be
transferable otherwise than by partition among members of Hindu
Joint Family (for a period of fifteen years from the date of regrant
made on or after the date of commencement of the Karnataka Village
Offices Abolition (Amendment) Act, 2003.

Provided that such occupancy or the ryotwari patta in respect of lands

granted to the holder of a village office in an enfranchised inam shall be
transferable with the previous sanction of the Deputy Commissioner which
shall be granted on payment of an amount equal to fifteen times the amount
of full assessment of the land.

Note: The section 5(3) was earlier amended by the Karnataka Village
Officer Abolition (Amendment) Act, 1978 which provided that any land
regranted under sub-section 1 of the Section 5 of the Act shall not be
transferable otherwise than by partition among members of a Hindu Joint
Family for a period of 15 years from 07/08/1978.

5. Section 5(4) provides that any transfer of land in contravention of sub-

Section (3) shall be null and void and the land transferred shall, as penalty,
be forfeited to and vest in the State Government free from all
encumbrances and any person in possession thereof shall be summarily
evicted therefrom by the Deputy Commissioner and the land shall be
disposed of in accordance with the law applicable to the disposal of
unoccupied unalienated lands;

Provided that if the person who has transferred the land in contravention of
sub-Section (3) is not alive while disposing of such land preference shall be
given to heirs of such person..

27
 Section 5(5) provides that nothing in sub-section (3) of Section 5 shall
apply to transfer in favour of State Government, a co-operative society and
a bank as a security for loans granted for improvement of such land or for
having cattle or agricultural implements for the cultivation of such land.

CHAPTER - 11

THE KARNATAKA TOWN AND COUNTRY PLANNING ACT 1961

1. APPOINTMENT OF A PLANNING AUTHORITY:-

This enactment comes into force with effect from 15/01/1965. This act
empowers the State Government in consultation with the State Town
Planning Board so constituted under Section 4 of this act appoint and
constitute by notification a "Planning Authority" having jurisdiction over
local planning area so defined and declared under Section 4A of this Act.

2. PREPARATION OF COMPREHENSIVE DEVELOPMENT PLAN

C.D.P):-

The aforesaid planning authority shall be responsible for the preparation of

the outlined development plan and the comprehensive development plan
and also to enforce the provisions regarding the land use and development
of the area so as to confirm to the plans so prepared by it.

3. CHANGE OF LAND USE:-

It is important to note that no change in land use shall be made except with
the written permission of the Planning authority which shall be contained
in a commencement certificate granted by the planning authority in the
form prescribed.

4. COMPREHENSIVE DEVELOPMENT PLAN 2105: (C.D.P)

A. INTRODUCTION:

The Comprehensive Development Plan or the C.D.P. for Bangalore

approved by the Government of Karnataka in the year 1995 was revised by
the Bangalore Development Authority which is the Planning Authority for
the Metropolitan area of Bangalore, as required under Section 25 of the
Karnataka Town and Country Planning Act, 1961. The revised C.D.P
(Master Plan) was approved by the Government in G.O.NO.UDD 540
BEM AA SE 2004, dated:25/06/2007. The Local Planning Area is
delineated into 47 planning districts, based on planning parameters.

28
 The Revised Master Plan 2015 for the Bangalore Metropolitan Area is a
statutory document that identifies growth perspectives, develops land use
plans addressing the urban agglomeration area’s growth and lays out
Development Control Regulations (DCRs) to regulate the city’s
development. The Karnataka Town and Country Planning Act, 1961
clearly provides that a Master Plan shall be revised once in every ten years.
The previous Comprehensive Development Plan was prepared in the year
1995 and remained in force till the Revised Master Plan 2015 was
approved by the Government. The current Revised Master Plan covers a
plan period ending in the year 2015.

The Bangalore Metropolitan Area to which the master plan applies covers
an area of 1307 sq.km and comprises of areas coming within the
jurisdiction of the Bruhat Bangalore Mahanagara Palike, surrounding
villages and areas falling under jurisdiction of the Bangalore – Mysore
Infrastructure Corridor Project Area (BMICPA).

The Revised Master Plan 2015 envisages a compact, balanced and

equitable urban growth for the city. In order to guide such growth, the
Revised Master Plan 2015 uses the proposed land use plans and zonal
regulations.

Zonal Regulations are an integral part of the Revised Master Plan 2015 and
are required to be read with the proposals as detailed in proposed land use
plans.

The Local Planning Area is delineated into 47 planning districts, based on

planning parameters.

The key objectives of the zonal regulations are:

a) To safeguard public interest.

b) To be realistic and anticipatory.
c) To be flexible and responsive.

The entire local planning area is conceptually organized into three main rings
for consideration of zoning and regulations.

i) Areas coming within the Core Ring Road: Ring I

ii) Areas coming between the Core Ring road and the Outer Ring Road:
Ring – II
iii) Areas coming beyond the Outer Ring Road and within the Local
Planning Area: Ring-III.
iv) The above rings are equivalent to Zone – A, Zone – B and Zone – C for
the purposes of Transferable Development Rights.

29
The land uses are broadly classified into the following zones:

Residential, Commercial, Industrial, Public and Semi Public, Traffic and

Transportation, Public Utilities, Park and Open Space, Unclassified and
Agriculture land.

Each of these categories are further divided into sub-categories on the basis of the
nature of the land, intensity of use and density of population of any particular area.

Any land located within the local planning area will definitely find a place in any
of the 47 planning districts, each of which are governed by separate maps.

The permissible land uses in each category are further separately defined in
distinct tables prepared for that purpose. The tables further provide valuable
information on the Floor Area Ratio, Ground Coverage, Set-backs, Parking
requirements, Fire protection requirement, Height restrictions, etc., which are
permissible for any particular land which is proposed to be developed.

RESIDENTIAL ZONES:

The permissible land uses in the residential category are plotted residential
development, villas, semi detached houses, apartments, hostels, dharmashala, multi
dwelling housing, service apartments and group housing (Development Plans).
When service e apartments are permitted, fee under Section 18 of the Karnataka
Town and Country Planning Act, 1961 for commercial use shall be levied.

The residential category has been further sub-divided into various sub-categories
which are detailed below:

a) Residential – Main:

This category is predominantly earmarked for many old areas in the city
like Malleswaram, Richmond Town, Vasant Nagar, Jayanagar,
Vijayanagar, Visveswarapura, Rajajinagar, R.T.Nagar etc.

The permissible land use in this category are mainly residential with also a
provision for Transport zone earmarked as T1 which includes provision for
bus bays, auto stand, bus shelters, information kiosk, metro stations,
parking areas, multi level car parking, filling stations, service stations.

b) Residential - Mixed:

This land use is predominantly earmarked for areas other than the above
coming within the local planning area. The main features of “Mixed Land
Use’ are those were employment, shopping and residential land uses will
be integrated in a compact urban form, at higher development intensities

30
 and will be pedestrian – oriented and highly accessible by public transit.
Mixed use areas will foster community interaction by providing focus on
community facilities.
 The design and development of mixed use activity areas provide
opportunities to create and/or maintain a special community identity and a
focal point for a variety of city wide, community and neighbourhood
functions.
 Mixed activity areas address the demand for employment, shopping and
residential areas within the city.

Ancillary use in the aforesaid category is permissible upto 20% of the total
built up area if the plot size is less than 240 sq.mtrs which includes categories C2
covering eateries such as darshinis, tea stalls and takeaways, gyms, orphanages,
old age homes, clinics, retail shops & hardware shops, banks, ATMs, insurance
and consulting and business offices, mutton and poultry stalls, cold storages, job
typing/computer training institutes, cyber cafés, internet browsing, uses for small
repair centres – electroning, mechanical, automobile etc., photo studio, nursing
homes and poly clinics/dispensaries/labs subject to minimum 300 sq.mtrs plot size
and NOC from pollution control board after adequate parking facility is provided,
Fuel stations and pumps, LPG storage, kalyana mantaps and all other uses of C1
are permitted including categories I2 which includes R & D labs, test centres, IT,
BT, BPO activities and all uses included in the I-1 category. It also includes urban
amenities like all uses of U1 and U2 are permissible, higher primary schools,
integrated residential schools, health centres and hospital, research institutions
subject to the size, government buildings, auditoriums, cultural complexes,
educational institutions, colleges.

In case the plot size is more than 240 sq.mtrs having a frontage of 10mtr or
more with abutting road with of 18 mtrs or more, the ancillary uses mentioned
above can be used as main use.

COMMERCIAL ZONES

The commercial zones have been divided into four different categories ie.,
Commercial (Central), Commercial (Business), Mutation Corridors and
Commercial Axes mainly on the basis of their location in and around the City of
Bangalore.

COMMERCIAL (CENTRAL) ZONE:

These areas include Chickpet, Cubbonpet, Cottonpet etc., and parts of

Shivajinagar around the Russell Market area. The sub-category under the
commercial zones are defined as C1, C2, C3 and C4. In the Commercial (Central)
category, the main land use in C4 which includes activities permissible in C1, C2
and C3 which are detailed below;

31
C4 – which includes sale of second hand junk goods, junk yards, warehouses and
storage areas for goods, wholesale and trading

C1 – which includes petty shops, newspaper, stationery and milk booth,

vulcanizing shops, tutorial centers not exceeding 50 sq. mts, STD/FAX/interest
centre/ATM centers, hair dressing and beauty parlors, offices/clinics belonging to
professional services category and self owned not exceeding 50 sq. mts, tailoring ,
dry cleaners, bakery and sweetmeat shop, pathological labs, recreational clubs,

C2 – which includes C-2 which includes eateries such as darshinis, tea stalls and
takeaways, gyms, orphanages, old age homes clinics, retail shops and hardware
shops, banks, ATMs, insurance, consulting and business offices, mutton and
poultry stalls, cold storages, job typing/computer training institutes, cyber cafés,
internet browsing, uses for small repair centers-electronic, mechanical,
automobiles, photo studio, nursing homes and poly clinics/dispensaries/labs
subject to a minimum of 300 sq.mts plot size and NOC from pollution control
board after adequate parking facility is provided, fuel stations and pumps, LPG
storage, kalyana mantaps.

C3 – which includes commercial and corporate offices, retail shopping complexes,

restaurants and hotels, convention centers and banquet halls, financial institutions.
Cinema and multiplexes, places of assembly, exhibitions centers, entertainment
and amusement centers, hospitals and specialty hospitals, automobiles repair and
garage centers, spares and stores.

The other land uses permissible as main land use itself in this Commercial
(Central) Zone and not only as ancillary use are R, I-3, T3 and T4, which include
the following.

R: Residential land uses which includes, Plotted residential developments, Villas

Semi detached houses, Apartments, Hostels, Dharmashala, Multi Dwelling
Housing, Service Apartments and Group Housing (Development Plans).

I-3 which includes Light Industries – All uses in I-1 and I-2 included uses
permitted subject to condition that the zone permits the extent of the area and
power consumption, the activity follows the required space standard, performance
characteristics such as noise, vibration, dust, odour, effluent, general nuisance.

T-3 – Transportation Zone which includes automobile spares and services,

godowns, loading and unloading platforms (with/without cold storage facility),
weigh bridges, bus terminals, road transport uses and all uses of T1 and T2 are
permitted.

T-4 – Transportation Zone which includes ware houses, storage depots, truck
terminals, railway station, yards, depots, airport, special warehousing, cargo

32
terminals, all ancillary (complimentary) uses for above categories (decision of the
authority shall be final) and all uses of T1, T2 and T3 are permitted.

The Maximum Floor Area Ratio (FAR) permissible in this category is 2.50 and the
ground coverage allowed is 75%.

In this zone, the setbacks need not be insisted except on the front side in respect of
plots upto 150 sq.mtrs in size and for plots ranging between 150 sq.mtrs to 500
sq.mtrs in size, no setbacks on the rear and sides shall be insisted. In all other
cases, setbacks shall be in accordance depending on the height of the proposed
building and the plot size

Further, the buildings with a floor area not exceeding 100 sq.mtrs are exempted
from providing car parking. However, equivalent parking fee shall be levied as
determined by the authority from time to time. Parking fee shall be credited to a
separate head of account and it shall be used for providing parking facilities.

The Parking requirements and norms in this category are as follows (Table 23):

No. Type of use One car parking of 2.5m x 5.5m each

shall be provided for every
1) Theatres and Auditoriums 25 seats of accommodation subject to
except Educational Institutions minimum of 20
2) Retail Business (shops, 50 sqm of floor area
shopping complexes, Malls etc)
3) Multiplex integrated with 40 sqm of floor area plus requirement of
shopping parking according to Cinematographic
Act
4) Wholesale and Warehouse 150sqm plus 1 lorry parking space
buildings measuring 3.5m x 7.5m, one additional
for every 500 sqm or part thereof
5) Restaurant establishment 75 sq.mtr of floor area
servicing food and drinks and
such other establishment
6) Lodging establishments, hotels 80 sq.mtr of floor area
and tourist homes
7) For star hotels For every 2 rooms. Additional 10% of
the total requirement shall be reserved as
parking for visitors.
8) Office buildings (Government / 50 sq.mtr of floor area
Semi Government and private)
9) Hostels Professional college hostels: one for
every five rooms and others 1 for every
ten rooms
10) Industrial buildings 100 sq.mtr of floor area plus one lorry
space measuring 3.5m x 7.5m for every

33
 thousand sq.mt or part thereof.
11) Nursing homes 50 sq.mtr of floor area
12) Hospitals 100 sq.mtr of floor area
13) Multi dwellings units A. Dwelling unit measuring more
than 50 sq.mtr upto 150 sql.mt of
floor area. Additional one car
park for part thereof, when it is
more than 50% of the prescribed
limit.
B. Additional car parking for each
two dwelling units, if the
dwelling unit is less than 50
sq.mtr
C. 10% of additional parking shall
be kept for visitors car parking.
14) Kalyana Mantaps, Convention 50 sq.mtr of floor area
Centres.
15) Recreational Clubs 50 sq.mtr of floor area
16) Educational buildings 150 sq.mtr of floor area
17) Other public and semi-public 100 sq.mtr of floor area
buildings

Further, the parking provision through building on stilts are as follows:

1) For Parking provided on the ground floor with the building on stilts,
parking area shall be exempt from the calculation of FAR.
2) All sides of the stilt parking shall be open.
3) When stilt parking is provided, the height shall not exceed 2.4mtrs and the
height shall be considered for calculating the total height of the building
4) Any place used for parking is not included in the calculation of FAR
5) In case, additional car parking is provided as part of parking complex or
parking lot in excess of the required car parking, such area shall be exempt
and not taken into account in calculating the FAR.

The parking provision on multi level or on any number of floors are as follows:

1) Access ramps, elevators, escalators to the upper floors or terrace floor shall
not be provided in the setback area and ramps to be within the plinth area
of the building and shall be exempt from FAR calculation.
2) Car parking shall not be provided in the setback areas. If provided, a
minimum 3mtr shall be left free from the building in the case of buildings
with ground + 3 floors and a minimum of 6 mtrs in the case of buildings
which are ground + four upper floors or more.
3) When Multi Level Car Parking (MLCP) is proposed on a plot as an
independent activity, there shall not be any limitation for FAR or height of

34
 building subject to the condition that they satisfy fire and airport authority
restrictions, wherever applicable.

COMMERCIAL (BUSINESS) ZONE

The Commercial (Business) zone comprises of areas in between

M.G.Road, Brigade Road, Residency Road, Madras Bank Road and St.Marks
Road and also areas between the traffic island of Mayo Hall, Magrath Road and
Residency Road, Manipal Centre between MG Road and Ulsoor Road and some
pockets in the III Ring Road with the objective of supporting formation of
secondary centres.

The main land use allowed in this zone is sub-category C3 which includes
commercial and corporate offices, retail shopping complexes, restaurants and
hotels, convention centers and banquet halls, financial institutions, cinemas and
multiplexes, places of assembly, exhibitions centers, entertainment and amusement
centers, hospitals and specialty hospitals, automobiles repair and garage centers,
spares and stores.

The other land uses permissible as main land use in this zone are R which
includes plotted residential developments, villas, semi detached houses,
apartments, hostels, dharamshalas, multi dwelling housing, service apartments and
group housing, I-3 which includes all uses in I-1 and I-2 ie., tiny and household
industries, R & D labs, test centres, IT, BT, BPO activities and uses permitted
subject to conditions that the zone permits the extent of the area and power
consumption, the activity follows the required space standard, performance
characteristics such as noise, vibrators, dust, odour, effluent, general nuisance, T3
which includes automobile spares and services, godowns, loading and unloading
platforms (with / without cold storage facility) weigh bridges, bus terminals, road
transport uses and all uses of T1 and T2 are permitted ie., bus bays, auto stand,
bus shelters, information kiosk, metro stations, parking areas, multilevel car
parking, filling stations, service stations, transport offices, workshops and garages,
U4 which includes all uses of U1, U2 and U3 are permissible ie., sub offices of
utilities up to 50 sq.mtrs, police stations, post offices, primary schools subject to
space standards, parks, play grounds and maidans, telecommunication/microwave
under special case, nursery crèches, spastic rehabilitation center, orphanages,
government dispensaries, public distribution system shops, fire stations, bill
collection centers, traffic and transport related facilities, places of worship,
dharamshalas, hostels, dhobi ghat, broadcasting and transmission stations, public
library, burial grounds, crematorium under special circumstances, nursery school
subject to a plot size of min 300 sq.mtr, higher primary schools, integrated
residential schools, health centers and hospital, research institutions subject to the
size, government buildings, auditoriums, cultural complexes, educational
institutions, colleges, meteorological observatories, airport and ancillary uses.

35
 However, in case where the road width is less than 12 mtrs and the plot
area is less than 240sq.mtrs, then, only the following uses are allowed ie., C2
which includes eateries such as darshinis, tea stalls and takeaways, gyms,
orphanages, old age homes clinics, retail shops and hardware shops, banks, ATMs,
insurance, consulting and business offices, mutton and poultry stalls, cold storages,
job typing/computer training institutes, cyber cafés, internet browsing, uses for
small repair centers-electronic, mechanical, automobiles, photo studio, nursing
homes and poly clinics/dispensaries/labs subject to a minimum of 300 sq.mts plot
size and obtaining of a no objection certificate from the pollution control board
after adequate parking facility is provided, fuel stations and pumps, LPG storage,
kalyana mantaps, I-2 which includes R & D labs, test centres, IT, BT, BPO
activities, R which includes land uses as mentioned above and U-4 which includes
land uses as mentioned above.

As far as the Floor Area Ratio (FAR) and plot coverage permissible in this
zone is concerned, it varies from 1.50 to 3.25 as far as FAR is concerned and 55%
to 40% as far as plot coverage is concerned as detailed in the table below.

Road Width (mtrs) F.A.R Coverage (%)

Less than 9 1.50 55

Above 9 and upto 12 1.75 50
Above 12 and upto 18 2.25 50
Above 18 upto 24 2.50 45
Above 24 upto 30 3.00 40%
Above 30 3.25 40

In this zone, the transferable development rights (TDR) are also available as per
rules. As far as set backs are concerned, it shall depend on the plot size and the
height of the proposed building. As far as parking requirements are concerned, it
shall be in accordance with the regulations provided under Table 23 of the Zoning
Regulations which was discussed and highlighted above.

MUTATION CORRIDORS:

The Eligibility under the Mutation Corridors are as follows:

 Plots facing the corridors shall have a minimum frontage of 12 mtrs.

 For mutation corridors, the maximum depth for zone consideration in case

of sub divided layout is two property depth (if they are amalgamated),

subject to the condition that entry and exit are provided from the front road

36
 only (abutting the Mutation Corridor), so that the residential area on the

rear side is insulated from the effects of commercial activity. In case the

applicant cannot come up with the reconstituted / amalgamated plot, then,

only one property depth shall be allowed. In this regard, the decision of the

authority shall be final.

 In case of lands that have no plotted development, a maximum of one

property depth (as per the document which existed prior to the approval of

Revised Master Plan 2015) may be allowed. In this regard also, the

decision of the authority shall be final.

 For the purpose of claiming benefit under the Mutation Corridor, if access

is provided for the rear property using another property abutting the

Mutation Corridor, then the Mutation Corridor benefits shall not be

allowed.

The Permissible land uses in the Mutation Corridor are as follows:

 The Main use category C4 which includes sale of second hand junk goods,

junk yards, warehouses and storage areas for goods, wholesale and trading

and all uses permitted in categories C1, C2 and C3.

 The other land uses permissible (as main land use)ie., Category R which

includes plotted residential development, villas, semi detached houses,

apartments, hostels, dharmashala, multi dwelling housing, service

apartments and group housing (Development Plans), category I-3 which

includes light industries and also all uses in categories I-1 and I-2. Uses

permitted shall be subject to the condition that the zone permits the extent

37
 of the area and power consumption, the activity proposed follows the

required space standard and fulfills performance characteristics such as

Noise, Vibration, Dust, Odour, Effluent and General nuisance. Category

T-3 which includes automobile spares and services, godowns, loading and

unloading platforms (with / without cold storage facility), weigh bridges,

bus terminals, road transport uses and all uses of T1 and T2 are permitted.

Category U4 which includes, all uses of U1, U2 and U3, meteorological

observatories, airport and ancillary uses.

 The Floor Area Ratio (FAR) and ground coverage in Mutation Corridors

(commercial) will be 2.75 in the case of plots facing a road width of less

than 30 mtrs and 3.25 where the road width exceeds 30 mtrs.

The set backs shall be accordance with Table 8 or Table 9 depending on the

height of the proposed building and plot size.

The Parking requirements and norms in this category are as follows:

No. Type of use One car parking of 2.5m x 5.5m each

shall be provided for every
1) Theatres and Auditoriums 25 seats of accommodation subject to
except Educational Institutions minimum of 20
2) Retail Business (shops, 50 sqm of floor area
shopping complexes, Malls etc)
3) Multiplex integrated with 40 sqm of floor area plus requirement of
shopping parking according to Cinematographic
Act
4) Wholesale and Warehouse 150sqm plus 1 lorry parking space
buildings measuring 3.5m x 7.5m, one additional
for every 500 sqm or part thereof
5) Restaurant establishment 75 sq.mtr of floor area
servicing food and drinks and
such other establishment
6) Lodging establishments, hotels 80 sq.mtr of floor area
and tourist homes
7) For star hotels For every 2 rooms. Additional 10% of

38
 the total requirement shall be reserved as
parking for visitors.
8) Office buildings (Government / 50 sq.mtr of floor area
Semi Government and private)
9) Hostels Professional college hostels: one for
every five rooms and others 1 for every
ten rooms
10) Industrial buildings 100 sq.mtr of floor area plus one lorry
space measuring 3.5m x 7.5m for every
thousand sq.mt or part thereof.
11) Nursing homes 50 sq.mtr of floor area
12) Hospitals 100 sq.mtr of floor area
13) Multi dwellings units D. Dwelling unit measuring more
than 50 sq.mtr upto 150 sql.mt of
floor area. Additional one car
park for part thereof, when it is
more than 50% of the prescribed
limit.
E. Additional car parking for each
two dwelling units, if the
dwelling unit is less than 50
sq.mtr
F. 10% of additional parking shall
be kept for visitors car parking.
14) Kalyana Mantaps, Convention 50 sq.mtr of floor area
Centres.
15) Recreational Clubs 50 sq.mtr of floor area
16) Educational buildings 150 sq.mtr of floor area
17) Other public and semi-public 100 sq.mtr of floor area
buildings

INDUSTRIAL – GENERAL
This zone supports the establishment of all types of industries.
The permissible land uses under this zone ie., Industrial – General are as in
Category I-5 which includes Heavy Industries, all uses of I -1, 2, 3 and 4 are
included, hazardous industries and heavy manufacturing industries. It is to be
noted that that the uses permitted are subject to condition that the zone permits the
extent of the area and installed power and performance characteristics such as
noise, vibration, dust, odour, effluent, general nuisance are to be considered.
The Ancillary uses allowable under this zone is upto 10% of the total area
and the land use category are as in R which includes, plotted residential

39
development, villas, semi detached houses, apartments, hostels, dharmashala, multi
dwelling housing, service apartments and group housing (Development Plans), as
in C4 which includes, second hand junk goods, junk yards, warehouses and storage
areas for goods, wholesale and trading, as in U2 which includes, burial grounds,
crematorium under special circumstances, nursery school subject to a plot size of
min 300 sq.mtr and as in T3 which includes, ware houses, storage depots, truck
terminals, railway station, yards, depots, airport, special warehousing, cargo
terminals, all ancillary (complimentary) uses for above categories (decision of the
authority shall be final) and all uses of T1, T2 and if the road width is more than
15 mtrs., T3 may be allowed as main land use.
The Floor Area Ratio (F.A.R) and ground coverage permissible under this
zone are as follows:
Sl.No. Size of the Ground F.A.R Setbacks
Plot (sq.mtr) coverage
Front Rear &
sides
1) Upto 500 75% 1.50 4.50 4.50
2) Above 500 60% 1.25 4.50 4.50
upto 1000
3) Above 1000 50% 1.00 6.00 6.00
upto 3000
4) Above 3000 45% 1.00 10.00 8.00

In this regard, the following points have to be noted:

1) After leaving minimum setbacks as per the above table if the remaining
portion of the plot cannot be used for erecting a meaningful building, the
Authority may insist for setbacks as in Table 8 or Table 9.
2) All lands/sites allotted by government agencies like KIADB, KSIICD etc.,
for industrial use shall not be permitted to be utilised for any other use,
without the no objection certificate from such departments / agencies as the
case may be.

40
 3) Transfer of Development Rights (TDR) is applicable as per rules.
The Parking requirements and norms in this category are as in Table 23 as
mentioned above.
INDUSTRIAL (HI-TECH)
This is a priority area for establishment of activities associated with new
technologies. IT, IT Enabled Services, BT, Electronics, Telecom and other
emerging areas and as well as services sector organised in industry format (Back
Offices etc.,). This zone also enables work-home-play relationship.
The permissible land uses in this zone as main land use category ie., I-1,
ancillary land use ie., R, C3, T2 and U4 as mentioned above.
The ancillary uses allowable upto 40% of the total built up area. Wherever
the road width is less than 12 mtrs, then, on such lands residential developments
may be permitted as main use.
The Floor Area Ratio (F.A.R) and Ground Coverage permissible under this
zone are as follows (Table 17):
No. Size of the plot (sq.mtr) Ground Cover Permissible Road width (in
FAR mtrs)
1. Upto 1000 55% 2.00 Upto 12.00
2. Above 1000 upto 2000 50% 2.25 Above 12.0
upto 18.0
3. Above 2000 upto 4000 50% 2.50 Above 18.0
upto 24.0
4. Above 4000 upto 6000 45% 3.00 Above 24.0
upto 30.0
5. Above 6000 upto 45% 3.25 Above 30
12000

The setbacks applicable in this zone shall be in accordance with Table 8 or

Table 9 depending on the height of the proposed building and the plot size and the
Transfer of Development Rights (TDR) is applicable as per rules.

41
 The Parking requirements and norms in this category are as in Table 23 as
mentioned above.

AMENDMENT MADE TO SECTION 14A OF THE KARNATAKA TOWN

AND COUNTRY PLANNING ACT 1961 WITH EFFECT FROM 02/02/2005.

“(3) Notwithstanding anything contrary contained in the Act, if the

change in land use or development is from commercial or industrial to
residential or from industrial to commercial and the stipulated fee is paid and
the Local Planning Authority is informed prior to effecting the change, the
permission for such change of land use or development shall be deemed to
have been given”.

42
 IMPLICATIONS OF THE AMENDMENT:

In the aforesaid amendment, the amendment to Section 14A of the

Karnataka Town and Country Planning Act 1961 and Section 95 of the Karnataka
Land Revenue Act 1964 need to be noted.

As per the provisions of the amendment to Section 14A, it is clear that the
procedure for change of land use from commercial to industrial or residential OR
from industrial to commercial have been simplified. The amendment stipulates
that for change of land use in respect of the above if the stipulated fee is paid and
the local planning authority is informed prior to effecting the change, the
permission for such change of land use or development shall deemed to have been
given. Therefore, in the specific cases of change of land use as mentioned above,
the old procedure of the Bangalore Development Authority issuing a public notice,
approval by the Bangalore Development Authority Board, visit to the concerned
spot by the Commissioner, Bangalore Development Authority, approval by the
Department of Housing and Urban Development and signature of the Chief
Minister according approval for change of land use appears to have been done
away with. If this new provision is implemented in a proper manner, it will ensure
speedier development of projects. However, it would have been better if change of
land use from any zone to any other zone could have been permitted under the new
provision rather than restricting the same to the above. For eg., change of land use
from Residential Zone to Commercial or Industrial Zone and from Industrial Zone
to Residential Zone does not appear to be covered by this amendment.

As regards to the amendment to Section 95 of the Karnataka Land Revenue

Act, 1964, the amendment appears to have far reaching consequences since by
omitting sub-sections 3A and 3B of Section 95, the State Government appears to
have divested itself of the powers of declaring any area by way of a Notification as
a green belt area and has also lifted the prohibition of conversion in the green belt
areas.

CHAPTER - 12

THE BANGALORE DEVELOPMENT AUTHORITY ACT 1976

1. CONSTITUTION OF B.D.A:-

This enactment made to ensure the orderly development of the City of

Bangalore and area adjacent thereto, came into force on 20/12/1975 by the
constitution of the Bangalore Development Authority under Section 3 of
the Act to exercise jurisdiction over the Bangalore metropolitan area which
means the area comprising the City of Bangalore as defined in the City of
Bangalore Municipal Corporation Act, 1949 (Mysore Act 69 of 1949), the
areas where the City of Bangalore Act 1945 (Mysore Act 5 of 1945) was
immediately before the commencement of this Act in force and such other

43
 areas adjacent to the aforesaid as the Government may from time to time
by notification specify.

2. OBJECTS:-

The objects of the Bangalore Development Authority shall be to promote

and secure the development of the Bangalore Metropolitan Area and for
the purpose of the Authority shall have the power to acquire, hold, manage
and dispose of movable and immovable property, whether within or
outside the area under its jurisdiction, to carry out building, engineering
and other operations and generally to do all things necessary or expedient
for the purpose of such development and for purpose incidental thereto.

3. POWERS AND AUTHORITY:-

a) Under Section 15 of the Act, the Bangalore Development Authority shall

draw up development schemes for the development of Bangalore
Metropolitan Area and shall also undertake works with a previous approval
of the State Government by incurring the necessary expenditure thereof for
the framing and execution of such developmental Schemes.

b) The Bangalore Development Authority also have the powers to acquire

lands for the purpose of implementation of developmental schemes drawn
by it under Sections 17 and 19 of the aforesaid Act.

4. CASE LAW:-

It is well settled that acquisitions by the Bangalore Development Authority

is exclusively governed by Section 17 and 19 of the Bangalore
Development Authority Act and not by the provisions of the Land
Acquisition Act. Therefore, the concept of "Publication of Declaration"
occurring in Section 11-A of the Land Acquisition Act as publication in the
Gazette under Section 19 of the Bangalore Development Authority Act
cannot be accepted. The period of two years as required under Section 11-
A of the Land Acquisition Act is not applicable to acquisition under the
Bangalore Development Authority Act.

ILR 1987 (4) Kar. 3024; 1987 (2) Kar LJ 103,

M.Hanumanthappa Vs. State of Karnataka and others.

44
 CHAPTER - 13

THE BANGALORE METROPOLITAN REGION DEVELOPMENT ACT

1985

13.1 This Act which received the assent of the Governor of Karnataka on
18/10/1985 was first published in the Karnataka Gazette Extraordinary on
the Twenty ninth day of October 1985.

13.2 The provisions of this act shall apply to all the areas coming under the
Bangalore Metropolitan Region which is defined under Section 2(c) as
follows:

“Bangalore Metropolitan Region" means the area comprising the

Bangalore District and Malur Taluk of Kolar District and such other areas
as the State Government may, from time to time, by notification, specify".

13.3 Section 3(1) of Act provides that the State Government, by notification
constitute for the Bangalore Metropolitan Region an Authority to be called
the Bangalore Metropolitan Region Development Authority. Section 3(2)
of the Act prescribes that the Authority so constituted u/s 3(1) shall be a
body corporate having perpetual succession and a common seal, with
power, subject to the provisions of this Act, to acquire, hold and dispose of
property, both movable and immovable and to contract and may, by the
said name, sue or be sued.

13.4 Section 9 of the Act defines the powers and functions of the Authority
which are as follows:-

i) to carry out a survey of the Bangalore Metropolitan Region and prepare

reports on the surveys so carried out;
ii) to prepare a structure plan for the development of Bangalore Metropolitan
Region;
iii) to cause to be carried out such works as are contemplated in the structure
plan;
iv) to formulate as many schemes as are necessary for implementing the
structure plan of the Bangalore Metropolitan Region;
v) to secure and co-ordinate execution of the town planning scheme and the
development of the Bangalore Metropolitan Region in accordance with the
said schemes;
vi) to raise finance for any project or scheme for the development of the
Bangalore Metropolitan Region and to extend assistance to the local
authorities in the Region for the execution of such project or scheme;
vii) to do such other acts and things as may be entrusted by the Government or
as may be necessary for, or incidental or conducive to, any matter which
are for furtherance of the objects for which the Authority is constituted;

45
viii) to entrust to any local authority the work of execution of any development
plan or town planning scheme;
ix) to co-ordinate the activities of the Bangalore Development Authority, the
Corporation of the City of Bangalore, the Bangalore Water Supply and
Sewerage Board, the Karnataka Slum Clearance Board, the Karnataka
Power Transmission Corporation Limited, the Karnataka Industrial Areas
Development Board, the Karnataka State Road Transport Corporation and
such other bodies as are connected with developmental activities in the
Bangalore Metropolitan Region.

13.5 Section 10 (1) of the Act provides that except with the previous of the
authority, no authority or person shall undertake any development within
the Bangalore Metropolitan Region of the types as the Authority may from
time to time specify, by notification published in the official Gazette.

13.6 Section 10(2) of the Act provides that no local authority shall grant
permission for any development referred to in sub- section (1) of Section
10 within the Bangalore Metropolitan Region, unless the B.M.R.D.A has
granted permission for such development.

14. Proposed O.D.P prepared by BIAAPA and approved by the

Government.

The Bangalore International Airport Area Planning Authority (BIAAPA)

has prepared a Outline Development Plan (ODP) for the areas in and
around Devanahalli to ensure planned development around the
international airport area. In the Outline Development Plan, the BIAAPA
has allotted land uses to the various survey numbers coming within its
jurisdiction which are mentioned below.

a) Residential
b) Commercial
c) Industrial
d) Public and semi-public
e) Transportation
f) Agricultural zone
g) Special agricultural zone

It is to be noted that all conversions and change of land use applications in

the area coming under the jurisdiction of BIAAPA will have to be carried
out only after obtaining the written approval of BIAAPA.

46
 CHAPTER - 14

KARNATAKA HOUSING BOARD ACT 1962

1. APPOINTMENT OF BOARD:

For the purpose of undertaking 'housing schemes' and 'land development

schemes' the State Government has constituted a Board known as
KARNATAKA BOARD as defined under Section 3 of the Karnataka
Housing Board Act 1962 by first published in the Karnataka Gazette on the
Twenty first day of March 1963 for the purposes of providing for such
housing schemes and land development schemes as elaborated under
Sections 18 and 18A of the aforesaid act. The board shall have the powers
to acquire, purchase, exchange or otherwise deal with any property as it
may deem necessary for the purposes of housing and land development
schemes.

2. POWERS AND AUTHORITY OF BOARD:-

Apart from the above, the board shall have the powers to purchase or take
on lease by entering into an agreement with any person any land which is
needed for the purposes of the housing or land development schemes as
provided for under 33(1) of the aforesaid act. The board may also take
steps for compulsory acquisition of any land or any interest therein
required for the execution of any housing or land development schemes in
the manner provided for in the Land Acquisition Act 1894 as modified by
this act and shall also pay compensation for such acquisition in accordance
with the provisions of this act.

CHAPTER - 15

THE KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD

ACT 1966

1. APPOINTMENT OF BOARD:-

For the purposes of securing, establishing and promoting the development

of Industries in the state of Karnataka, the State Government has by a
notification first published in the Karnataka Gazette on the Twenty sixth
day of May, 1966 appointed a Board by the name of KARNATAKA
INDUSTRIAL AREAS DEVELOPMENT BOARD which shall be a body
corporate with a common seal and shall be constituted as mentioned under
Section 6 of the Act.

47
2. POWERS AND AUTHORITY OF BOARD:

Under Section 3 of the Act the State Government may declare any area in
the state as an industrial area for the purposes of the act by notification
issued in that behalf. The board so constituted under the provisions of this
act shall have the powers to acquire and hold such movable and immovable
property as it may deem necessary and also lease, sell, exchange or
otherwise transfer any property held by it on such conditions as it deems
fit. The board shall also have the power to purchase or take on lease any
land and to execute such works as it deem necessary to fulfill its objectives.
It shall also make available buildings on lease, sale or on a lease-cum-sale
basis to industrialists who intend to start industrial undertakings. The
board shall also have the powers to allot the suitable persons factory sheds
or buildings in the industrial area established by the board. The board shall
also acquire any land for the fulfillment of its objects under Section 28 and
pay compensation in accordance with the provisions of Section 29 of the
Act.

CHAPTER – 16

CONCLUSION

The property transactions in and around Bangalore and in the state of Karnataka
have attained global levels and standards with investors, both NRI’s and Foreign
Institutional Investors, being involved in the same. It is in this context, a thorough
knowledge of the various laws, rules and regulations in the State of Karnataka
highlighted above in this article becomes very relevant and significant. It will be
hazardous for any person to embark upon a property transaction in the State of
Karnataka especially in and around Bangalore (as has happened recently) without
the proper knowledge, understanding and legal compliance of the aforesaid laws.

48
 The Registration Act 1908

This Act deals with the registration of documents. This Act extends to the whole
of India except Jammu and Kashmir. This Act which consolidated earlier
enactments relating to the registration of documents was made to come into effect
from the 1st day of January 1909.

In this Act there are certain definitions to the phrases that are mainly used:

Definitions: In this Act, unless there is anything repugnant in the subject or

context:

1. “Addition” means the place of residence, and the profession, trade,

rank and title (if any) of a person described, and, in the case of
(Indian), (x x x x) his father’s name, or where he is usually
described as the son of his mother, then his mother’s name;
2. “Book” includes a portion of a book and also any number of sheets
connected together with a view of forming a book or portion of a
book (and the information, storage devices like floppy disk, hard
disk or compact disk etc., Micro-film or any other media);
3. “District” and “Sub-District” respectively means a district and
sub-district formed under this Act;
4. “District Court” includes the High Court in its ordinary original
civil jurisdiction;
5. “Endorsement” and “Endorsed” include and apply to an entry in
writing by a registering officer or a rider or covering slip to any
document tendered for registration under this Act;
6. “Immovable Property” includes land, buildings, hereditary
allowances, rights to was, lights, ferries, fisheries or any other
benefit to arise out of land, and things attached to the earth, or
permanently fastened to anything which is attached to the earth, but
not withstanding timber, growing crops nor grass;
6(a) “India” means the territory of India excluding the State of (Jammu
and Kashmir)
7. “Lease” includes a counterpart, kabuliyat, an undertaking to
cultivate or occupy, and an agreement to lease;
8. “Minor” means a person who, according to the personal law to
which he is subject, has not attained majority;
9. “Movable Property” includes standing timber, growing crops and
grass, fruit upon and juice in trees, and property of every other
description, except immovable property; and
10. “Representative” includes the guardian of a minor and the
committee or other legal curator of a lunatic or idiot;

In accordance with the provision of this Act the each State Government is suppose
to establish a Department to carry out the registration of the documents as

49
provided for in this Act and such establishments are mainly attached to the revenue
departments of the States and in some other States they are attached to Judicial
Department. The authorities laned to execute the provision of this Act are mainly:

1. The Inspector General of Registration, at the State Level.

2. The District Registrars at the District Level and
3. The Sub-Registrar at the Sub-District Level and there is also a post called
Inspector of Registration Officers, who works under the Super-Intendence
of the District Registrar. In some of the States there are Photo Registrars
where photocopying system is introduced and such other post and
establishments that are necessary for the smooth administration.

As explained in the definition each Sub-Registrar office is suppose to maintain

certain books and registers for the copying of the documents which are registered
in the respective registration offices.

The following books are usefully maintained.

Book 1, ‘Register of non-testamentary documents relating to immovable property’;

Book 2, ‘Record of reasons for refusal to register’
Book 3, ‘Register of wills and authorities to adopt’; and
Book 4, ‘Miscellaneous Register’;

in District Registrar office

Book 5, ‘Register of deposit of Wills’-

In Book 1 shall be entered or filed all documents or memoranda registered under

Sections 17,18 and 89 which relate to immovable property, and are not wills.

In Book III shall be entered all wills and authorities to adopt.

In Book 4 shall be entered all documents, registered under clauses (d) and (f) of
Section 18 which do not relate to immovable property.

In addition to these Books Indexes are also maintained in all registering offices
namely:
Index No. I, Index No. II, Index No. III, Index No. IV.

1. Index No. I shall contain the names and additions of all persons
executing and of all persons claiming under every document entered or
memorandum filed in Book No. 1
2. Index No. II shall contain such particulars mentioned in Section 21
relating to every such document and memorandum as the Inspector-
General from time to time directs in that behalf.
3. Index No. III shall contain the names and additions of all persons
executing every Will and authority entered in Book No. 3, and of the

50
 executors and persons respectively appointed thereunder, and after the
death of the testator or the donor (but not before) the names and
additions of all persons claiming under the same.
4. Index No. IV shall contain the names and additions of all persons
executing and of all persons claiming under every document entered in
Book No. 4
5. Each Index shall contain such other particulars, and shall be prepared in
such form, as the Inspector-General from time to time directs.

All the registering officers are suppose to allow the inspection of Book No. 1 & 2
and Indexes related to Book No. 1 and they are suppose to allow the inspection of
these books and indexes to all persons applying for the same including granting of
copies on payment of the fees prescribed by the State Government from time to
time.

Whereas copies of entries in Book No. 3 and in the Index relating there to shall be
given to the person executing the documents to which such entries relate or to their
agents during the life time of such executant and after his death to any person
applying for such copies on production of proof of death of such executant.

Whereas the entries in Book No. 4 and Index relating there to are given to any
person executing or claiming under the documents to which such entries
respectively refer or to this agent or representatives. So copies of Book 4 are not
open to general public. Moreso searches to the entries in Book No. 3 and 4 are
suppose to be done by the registering office only and not even by his staff. In
addition to the above Books and Indexes all the registering officers are suppose to
have a seal which shall contain the words “the seal of the Sub-Registrar /
District Registrar …” with the State Emblem in the middle. This seal is the most
important and is suppose to be under lock and key of the officer concerned and to
be handed over only to the officer who takes charge from him under
acknowledgement because this seal is suppose to be put only to the Registration
Certificate and also used for putting the joint seal in between the different pages of
the documents and also to all the Certified Copies granted by the said office
without which the document is not supposed to be entertained as a registered
document.

I think this much of Information is sufficient at present.

Now let us try to understand what exactly the word “REGISTRATION” means

The word “Registration” as per the Registration Act generally means that on such
and such a date at such and such a time the person named as cliamant and
executants have appeared before the Sub-Registrar / District Registrar and it was
presented to the registering officer to be registered in the particular book in which
it is suppose to be registered and the person executing such document was
identified by two identifying witnesses and the registering officer after satisfying

51
himself as to the volantry execution of the document by such executant, has
accepted the same for registration and the document is registered in the particular
book and a certificate under Section 60 of the Act is endorsed to the document
with the Seal, Signature and Date of the respective Regis tering Officer.

The Registratrion of a document under the provisions of this Act is considered to

be a notice to the world.

Now let us see what are the Documents Compulsarily Registered and which are
Optionally registerable.

Section 17 of this Act presecribes what all the documents of which the registration
is compulsory.

17. Documents of which registration is compulsory:

1. The following documents shall be registered, if the property to which they

relate is situate in a district in which, and if they have been executed on or
after the date on which, Act No. XVI of 1864, or the Indian Registration
Act, 1866 (20 of 1866), or the Indian Registration Act, 1871 (8 of 1871), or
the Indian Registration Act, 1877 (3 of 1877), or this Act came or comes
into force, namely:

(a) instruments or gift of immovable property;

(b) other non-testamentary instruments which purport or operate to

create, declare, assign, limit or extinguish, whether in present or
in future, any right, title or interest, whether vested or
contingent, of the value of one hundred rupees and upwards, to
or in immovable property;

(c) non-testamentary instruments which acknowledge the receipt or

payment of any consideration on account of the creation,
declaration, assignment, limitation or extinction of any such
right, title or interest; and

(d) lease of immovable property from year to year, or for any term
exceeding one year, or reserving a yearly rent;

(e) non-testamentary instruments transferring or assigning any

decree or order of a Court or any award when such decree or
order or award purports or operates to create, declare, assign,
limit or extinguish, whether in present or in furture, any right,
title or interest, whether veted or contingent, of the value of one
hundred rupees and upwards, to or in immovable property;

52
Provided that the (State Government) may, by order published in the (Official
Gazette), exempt from the operation of this sub-section any leases executed in any
district, or party of a district, the terms granted by which do not exceed five years
and the annual rents reserved by which do not exceed fifty rupees.

1-A The documents containing contracts to transfer for consideration, any

immovable property for the purpose of Section 53-A of the Transfer of Property
Act, 1882 (4 of 1882) shall be registered if they have been executed on or after the
commencement of the Registration and Other Related Laws (Amendment) Act,
2001 and if such documents are not registered on or after such commencement,
then, they shall have no effect for the purposes of the said Section 53-A.

2. Nothing in clauses (b) and (c) of sub-section (1) applies to

(i) any composition-deed; or

(ii) any instrument relating to shares in a Joint Stock Company,

notwithstanding that the assets of such Company consist in whole
or in part of immovable property; or

(iii) any debenture issued by any such Company and not creating,
decalring, assigning, limiting or extinguishing any right, title or
interest, to or in immovable property except in so far as it entitles
the holder to the security afforded by a registered instrument
whereby the Company has mortgaged, conveyed or otherwise
transferred the whole or part of its immovable property or any
interest therein to trustees upon trust for the benefit of the holders of
such debentures; or

(iv) any endorsement upon or transfer of any debenture issued by any

such Company; or

(v) any document other than the documents specified in sub-section (1-
A) not itself creating, declaring, assigning, limiting or extinguishing
any right, title or interest of the value of one hundred rupees and
upwards to or in immovable property, but merely creating a right to
obtain another document which will, when executed, create,
declare, assign, limit or extinguish any such right, title or interest;
or

(vi) any decree or order of a Court (except a decree or order expressed

to be made on a compromise and comprising immovable property
other than that which is the subject-matter of the suit or
proceeding); or

(vii) any grant of immovable property by the (Government); or

53
 (viii) any instrument of partition made by a Revene Officer; or

(ix) any order granting a loan or instrument of collateral security

granted under the Land Improvement Act, 1871 (26 of 1871), or the
Land Improvement Loans Act, 1883 (19 of 1883); or

(x) any order granting a loan under the Agriculturists Loans Act, 1884
(12 of 1884), or instrument for securing the repayment of a loan
made under that Act; or

(x)a any order made under the Charitable Endowments Act, 1890 (6 of
1890), vesting any property in a Treasurer of Charitable
Endowments or divesting any such Treasurer of any property; or

(xi) any endorsement or a mortgage-deed acknowledging the payment

of the whole or any part of the mortgage-money, and any other
receipt for payment of money due under a mortgage when the
receipt does not purport to extinguish the mortgage; or

(xii) any certificate of sale tranted to the purchaser of any property sold
by public auction by a Civil or Revenue Officer.

Explanation: A document purporting or operating to effect a contract for the sale

of immovable property shall not be deemed to require or ever to have required
registration by reason only of the fact that such document contains a recital of the
payment of any earnest money or of the whole or any part of the purchase money.

2. Authorities to adopt a son, executed after the first day of January, 1872 and
not conferred by a Will, shall also be registered.

The Section is self explanative needs not much of the narration. However I would
like to add that the provision for compulsory registration of the contract to transfer
is not yet given effect to by the Government.

Section 18 of this Act deals with the documents of which registration is optional.

18. Documents of which registration is optional: Any of the following

documents may be registered under this Act, namely:

a. instruments (other than instruments of gift and Wills) which purport or

operate to create, declare, assign, limit or extinguish, whether in present
or in future, any right, title or interest, whether vested or contingent, of
a value less than one hundred rupees, to or in immovable property;

54
 b. instruments acknowledging the receipt or payment of any consideration
on account of the creation, declaration, assignment, limitation or
extinction of any such right, title or interest;

c. leases of immovable property for any terms not exceeding one year,
and leases exempted under Section 17;

c(a) instruments transferring or assigning any decree or order of a Court or

any award when such decree or order or award purports or operates to
create, declare, assign, limit or extinguish, whether vested or
contingent, of a value less than one hundred rupees, to or in immovable
property;

d. instruments (other than Wills) which purport or operate to create,

declare, assign, limit or extinguish any right, title or interest to or in
immovable property;

e. Wills; and

f. All other documents not required by Section 17 to be registered.

Here I would like to add that Government of Karnataka has introducted a section
called Section 22-A as an amendment to the Registration Act which says;

22-A Documents registration of which is opposed to public policy:

1. The State Governement may, by notification in the Official Gaxette, declare

that the registration of any document or class of documents is opposed to
public policy.

2. Notwithstanding anything contained in this Act, the Registering Officer shall

refuse to register any document to which a notification issued under sub-
section (1) is applicable.

Under the provision of this Section the Government from time to time declares
registration of certain documents as opposed to public policy. Such documents
shall not be registered by the registering officer and if such documents is produced
he is suppose to refuse registration of the same. Here a point to be noted is the
registrar is bound to refuse registration of such documents but he cannot refuse to
accept the document at the first instance that means he is duty bound to accept the
document, complete the formalities of enquiry and endorsements taking of thumb
impression etc, and then instead of proceeding to register it in the respective book
and to pass a certificate of registration under Section 60, he shall endorse the order
of refusal i.e: REGISTRATION REFUSED., then put his signature, seal and date
for this order and enter that with his reasons for refusal in Book No. 2 and return
the such refused document along with a copy of the refusal entry in Book 2 to the

55
concerned party forthwith without any delay thereon. Against the order of refusal
by the registering officer an appeal can be filed before the District Registrar as per
the provisions of this Act and in case if the District Registrar also refuses to pass
an order for registration then go to the courts for re-dressal depending on the
merits of the case.

Now I would like to explain the effect of the Registration and Non-Registration.

Section 47, 48, 49, 50 deals with the subject

47. Time from which registered document operates: A registered document

shall operate from the time from which it would have commenced to operate if no
registration thereof had been required or made, and not from the time of
registration.

CASE LAW

Section 47 – Sale Deed – Registration – Document effective from date of

execution.

Shivaraj Pail, J, Held – A plan reading of Section 47of the Act, shows that a
document becomes operative from the time of its execution and not from the time
of its registration. Section 47 states from what date the document becomes
operative and Section 75 states from what date the registration takes effect

Sections 47, 49 and 75(3) – T.P. Act, Sections 48 and 54 – Successive sale deeds –
Earlier registered later and later registered earlier – Which prevails.

Malimath, J – Ex. P-1, a sale deed dated 17-9-1962 executed by plaintiffs 1 and 2
in favour of defendant was refused registration by the Sub-Registrar on denial of
execution by the plaintiffs 1 and 2, but was compulsorily registered on 25-8-1964
by the order of the District Registrar dated 19-8-1964 under Section 75(1) of the
Registration Act. Meanwhile plaintiffs 1 and 2 executed sale deeds Exts. P-2 and
P-3, dated 10/11-10-1962 of the same property in favour of plaintiff 3 and they
were registered on 11-10-1962.

Held: The sale deed Ext. P-1, dated 17-9-1962 in favour of defendant prevailed
over the sale deeds Exts. P-2 and P-3, dated 10/11-10-1962, notwithstanding the
fact, that the sale deed Ext. P-1 was registered long after the sale deed Exts. P-2
and P-3 were registered.

48. Registered documents relating to property when to take effect against

oral agreements.- All non-testamentary documents duly registered under this
Act, and relating to any property, whether movable or immovable, shall take effect

56
against any oral agreement or declaration relating to such property, unless where
the agreement or declaration has been accompanied or followd by delivery of
possession (and the same constitutes a valid transfer under any law for the time
being in force:

Provided that a mortgage by deposit of title deeds as defined in Section 58 of the

Transfer of Property Act, 1882 (4 of 1882) shall take effect against any mortgage-
deed subsequently executed and registered which relates the same property.)

49. Effect of non-registration of documents required to be registered.- No

document required by Section 17 (or by any provision of the Transfer of Property
Act, 1882 (4 of 1882) to be registered shall.-
(a) affect any immovable property comprised therein; or
(b) confer any power to adopt; or
(c) be received as evidence of any transaction affecting such property of
conferring such power,
unless it has been registered:

Provided that an unregistered document affecting immovable property and rquired

by this Act or the Transfer of Property Act, 1882 (4 of 1882), to be registered may
be received as evidence of a contract in a suit for specific performance under
Chapter II of the Specific Relief Act, 1877 (1 of 1877), (x x x x), or as evidence of
any collateral transaction not required to be effected by registered instrument.

The terms of a registered document could not be varied by an unregistered

document.

Section 49 – Sale of property less than Rs.100 in value – Unregistered deed can be
used to prove delivery of possession and character of possession.

Section 49 – Scope – Unregistered Palupatti or memorandum of Partition- Can

only be admitted in evidence for purpose of proof of factum of partition, but never
for purpose of proving contents or even possession of properties mentioned
therein.

Section 49 – Unregistered sale deed – Use of.

An unregistered sale deed can be used for the collateral purpose of proving the
nature or character of possession. Hence a mortgagee who has obtained a sale
deed butr which is unregistered can prove his possession as owner and title by
adverse possession. Head-note in 1965(1) Mys. L.J.44 is not correct.

50. Certrain registered documents relating to land to take effect against

unregistered documents. – (1) Every document of the kinds mentioned in clauses
(a), (b), (c) and (d) of Section 17, sub-section (1), and clauses (a) and (b) of
Section 18, shall, if duly registered, take effect as regards the property comprised

57
therein, against every unregistered document relating to the same property, and not
being a decree or order, whether such unregistered document be of the same nature
as the registered document or not.

(2) Nothing in sub-section (1) applied to leases exempted under the proviso to sub-
section (1) of Section 17 or to any document mentioned in sub-section (2) of the
same section, or to any registered document which had not priority under the law
in force at the commencement of this Act.

Explanation: - In cases where Act No. XVI of 1864 or the Indian Registration
Act, 1866 (20 of 1866), was in force in the place and at the time in and at which
such unregistered document was exectued, “unregistered” means not registered
according to such Act, and, where the documents is executed after the first day of
July, 1871, not registered under the Indian Registration Act, 1871 (8 of 1871), or
the Indian Registration Act, 1877 (3 of 1877), or this Act.

Here we have to understand very clearly that once a document is executed there is
a time limit prescribed under the Act which is normally four month from the date
of execution and with penalty eight months and with certain arrangement it can go
upto 12 months. So when a document is registered after the following procedure
of presentation and when it is registered it takes effect from the date of execution
and not from the date of Registration. For Example: A document is executed on
01.04.05 and after completing all the formalities and the time which is provided
for under the Act, if this document is registered after one year say on 31.03.2006,
the effective date for the sale is 01.04.05 and not 31.03.06. This is an important
factor which is suppose to be understood by the parties because most of the
registering public are ot aware of this provision. Now for example Mr. A executes
a sale deed in favour of Mr. B by taking full sale consideration for the property
sold through that Deed and avoids coming to the registering office intentionally,
the option left with Mr. B is to present document for registration and ask for
compulsory attendence of Mr. A and this procedure takes long time ultimately B
succeeds in getting the Sale Deed duly registered. However suppose Mr. A
executes another Sale Deed with Mr. C with fraudulent intention to deprive B from
getting the property and if the sale deed in favour of C is registered in between the
time before B’s sale deed is registered the affect of B’s registration in it prevails
over the registration of C’s document. This is an important factor to be noted by
the registering public. Still there are lot of aspects which can be explained with
regard to the registration of documents, regarding time of presentation withdrawal
of the documents presented before registration and so many factors which are
mainly connected to the registration of documents. But because of this
presentation is prepared just to highlight certain important factors I conclude this
paper here with only only statement that is an unstampped document.

There is no restriction for registration of an unstampped document under the

provisions of registration law but there is restriction in the stamp law for
registration of a document which is not duly stamped. Since the Stamp Act which

58
is a State Act having ascent of the President of India prevails over Registration
Act, the Sub-Registrars are supposed to accept the document for registration of the
documents which are not duly stamped and are suppose to impound the document
keeping the registration of documents suspended untill the document is certified as
duly stamped.

59
 The Karnataka Stamp Act 1957

This Act is based on the Indian Stamp Act 1899, since (the collection of Stamp
Duty) and taxing of instruments relates to State and Central Subject, (as per the
constitution of India). Each State Legislature have enacted their own Stamp Act
which is almost in line with the Indian Stamp Act.

Whereas earlier to 5th Dec’1957 this was called Mysore Stamp Act and with effect
from 5th Dec’1957 the existing Karnataka Stamp Act is in force as amended from
time to time. Here in Stamp Act there are certain definitions which are to be borne
in mind while classifying the document or rather drafting the document.

1. Definitions – (1) In this Act, unless the context otherwise requires,-

(a) “bond” includes-
(i) any instrument whereby a person obliges himself to pay
money to another, on condition that the obligation shall be void
if a specified act is performed or is not performed, as the case
may be;

(ii) any instrument attested by a witness and not payable to

order or bearer, whereby a person obliges himself to pay money
to another; and

(iii) any instrument so attested, whereby a person obliges

himself to deliver grain or other agricultural produce to another.

(b) “chargeable” means, as applied to an instrument executed or first

executed after the commencement of this Act, chargeable under this
Act, and as applied to any other instrument chargeable under the law in
force in the territories of the State of Karnataka when such instrument
was executed or, where several persons executed the instrument at
different times, first executed;

(c) “Chief Controlling Revenue Authority” means the officer appointed

by the State Government to be the Commissioner of Stamps for
Karnataka;

(d) “conveyance” includes a conveyance on sale and every instrument

by which property, whether movable or immovable is transferred inter
vivos and which is not otherwise specifically provided for by the
Schedule;

(d) (a) “Deputy Commissioner” means the Chief Officer in charge of

the revenue administration of a district and includes in respect of such
provisions of this Act or rules made thereunder such officer in such

60
area as the State Government may, by notification in the official
Gazette, specify;

(e) “duly stamped” as applied to an instrument means that the

instrument bears an adhesive or impressed stamp of not less than the
proper amount and that such stamp has been affixed or used in
accordance with the law for the time being in force in the territories of
the State of Karnataka;

(f) “executed” and “execution” used with reference to instruments,

means “signed” and “signature”;

(g) “Government security” means a Government security as defined in

the Public Debt Act, 1944 (Central Act XVIII of 1944);

(h) “impressed stamp” includes-

(i) labels affixed and impressed by the proper officer; and
(ii) stamps embossed or engraved on stamped paper;

(i) “India” means the territory of India excluding the State of Jammu
and Kashmir;

(j) “instrument” includes every document by which any right or liability

is, or purports to be, created, transferred, limited, extended,
extinguished or recorded;

(k) “instrument of partition” means any instrument whereby co-owners

of any property divide or agree to divide such property in severalty and
includes-
(i) a final order for effecting a partition passed by any revenue
authority or any civil court,

(ii) an award by an arbitrator directing a partition, and

(iii) when any partition is effected without executing any such

instrument, any instrument or instruments, signed by the co-
owners and recording, whether by way of declaration of such
partition or otherwise, the terms of such partition amongst the
co-owners;

(l) “lease” means of immovable property, and includes also –

(i) a patta,

(ii) a kabuliyat or other undertaking in writing not being a

counterpart of a lease to cultivate, occupy or pay or deliver rent
for, immovable property,

61
 (iii) any instrument by which tools of any description are let,

(iv) any writing on an application for a lease intended to signify

that the application is granted,

(m) “marketable security” means a security of such a description as to

be capable of being sold in any stock market in India;

(n) “mortgage deed” includes every instrument whereby, for the

purpose of securing money advanced or to be advanced, by way of
loan, or an existing or future debt, or the performance of an
engagement, one person transfers, or creates, to or in favour of another,
a right over or in respect of specified property;

(o) “paper” includes vellum, parchment or any other material on which

an instrument may be written;

(p) “power-of-attorney” includes any instrument (not chargable with a

fee under the law relating to court-fees for the time being in force)
empowering a specified person to act for and in the name of the person
executing it;

(q) “settlement” means any non-testamentary disposition in writing, of

movable or immovable property made-
(i) in consideration of marriage,

(ii) for the purpose of distributing property of the settlor among

his family or those for whom the desires to provide, or for the
purpose of providing for some person dependent on him, or

(iii) for any religious or charitable purpose,

and includes an agreement in writing to make such a disposition and, where any
such disposition has not been made in writing, any instrument recording whether
by way of declaration, of trust or otherwise, the terms of any such disposition.

The Karnataka General Clauses Act, 1899, shall apply for the interpretation of this
Act, as it applies for the interpretation of Karnataka

Stamp Duties

Of the liability of instruments to duty

As per Section-3 of this Act which reads

62
Instruments chargable with duty.- Subject to the provisions of this Act and the
exemptions contained in the schedule, the following instruments shall be chargable
with duty of the amount indicated in that schedule as the proper duty therefore,
respectively, that is to say,-

a. every instrument mentioned in that schedule which, not having been

previously executed by any person, is executed in the territories of
the State of Karnataka on or after the commencement of this Act;

b. every instrument mentioned in that schedule which, not having been

previously executed by any person, is executed out of the State of
Karnataka on or after that day, relates to any property situate, or to
any matter or thing done or to be done, in the territories of the State
of Karnataka and is received in the territories of the State of
Karnataka:

Provided that no duty shall be chargable in respect of

(1) any instrument executed by, or on behalf of, or in favour of the State
Government in cases where, but for his exemption, the State Government
would be liable to pay the duty chargable in respect of such instrument;

(2) any instrument for sale, transfer or other disposition, either absolutely or by
way of mortgage or otherwise, of any ship or vessel or any part, interest,
share or property of or in any ship or vessel registered under (The
Merchant Shipping Act, 1958).

The instruments are chargable with duty of the amount indicated in the schedule
that means it is not the transaction which is taxed but the instrument only. If an
instrument is drafter in a particular manner by which we can save Stamp Duty that
is not an evasion of Stamp Duty. It is the recitals and the covanants which are
mentioned in the instrument and the affect of those covenants and recitals makes it
deciding factor as to which article of the schedule that instrument is chargable.
This is called classifications of document. If one is very careful in drafting in
document it is possible to save a Stamp Duty legally. When a document is clubbed
with different instruments relating to distinct matters it has to be changed with the
aggregate amount of duties with which separate instruments each comprising or
relating to one of such matters would be chargable under this Act. However if an
instrument is so framed has to come within two or more of the descriptions in the
schedule where the duties chargable thereunder are different. It shall be chargable
only with the highest of such duties.

Duties How To Be Paid

Earlier in Karnataka the duties were to be paid by way of Stamp Papers or

Stamped with impressed stamps or with adhesive stamp as the case may be. But

63
since the take stamp papers were found to be in circulation the Government of
Karnataka has now made it mandatory to pay the duties either by Demand Drafts
or by Cash.

How transfer in consideration of debt or subject to future payment, etc. to be

charges. – Where any property is transferred to any person in consideration,
wholly or in part, of any debt due to him, or subject either certainly or contingently
to the payment or transfer of any money or stock, whether being or constituting a
charge or encumbrance upon the property or not, such debt, money, or stock is to
be deemed the whole or part, as the case may be, of the consideration in respect
whereof the transfer is chargable with ad valorem duty:

Provided that nothing in this section shall apply to any such certificate of sale as is
mentioned in Art.15 of the schedule.

Explanation. – In the case of a sale of property subject to a mortgage or other

encumbrance, any unpaid mortgage money charged, together with the interest (if
any) due on the same, shall be deemed to be part of the consideration for the sale:

Provided that, where property subject to a mortgage is transferred to the

mortgagee, he shall be entitled to deduct from duty payable on the transfer the
amount of any duty already paid in respect of the mortgage.

Illustrations

(1) A owes B Rs.1000. A sells a property to B the consideration being Rs.500

and the release of the previous debt of Rs.1000. Stamp duty is payable on
Rs.1500.

(2) B sells a property to B for Rs.500 which is subject to a mortgage to C for

Rs.1000 and unpaid interest Rs.200. Stamp Duty is payable on Rs.1700.

(3) A mortgages a house of the value of Rs.10000 to B for Rs.5000. B

afterwards buys the house from A. Stamp Duty is payable on Rs.10000
less the amount of stamp duty already paid for the mortgage.

Duty by whom payable

Duties by whom payable.- In the absence of an agreement to the contrary, the

expense of providing the proper stamp shall be borne, -

(a) in the case of any instrument described in any of the following Articles
of the Schedule, namely:
No. 2 (Administration Bond)
No. 6 (Agreement relating to deposit of title deeds, pawn or pledge),
No. 12 (Bond)

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No. 13 (Bottomry Bond)
No. 23 (Customs Bond)
No. 27 (Further charge)
No. 29 (Indemnity Bond)
No. 34 (Mortgage Deed)
No. 45 (Release)
No. 46 (Respondentia Bond)
No. 47 (Security Bond or Mortgage Deed)
No. 48 (Settlement)
No. 52 (a) (Transfer of Debentures, being marketable securities, whether the
debenture is liable to duty or not);
No. 52 (b) (Transfer of any interest secured by a bond, mortgage deed or policy of
insurance);

By the person drawing, making or executing such instrument;

(b) in the case of a conveyance (including a reconveyance of mortgaged

property) by the grantee; in the case of a lease or agreement to lease –
by the lessee or intended lessee;

(c) in the case of a counterpart of lease – by the lessor;

(d) in the case of an instrument of exchange – by the parties in equal

shares;

(d)(a) in the case of a certificate of enrolment in the roll of Advocates

maintained by the State Bar Council by the Advocate enrolled;

(e) in the case of a certificate of sale – by the purchaser of the property to

which such certificates relates; and

(f) in the case of an instrument of partition – by the parties thereto in

proportion to their respective shares in the whole property partitioned,
or, when the partition is made in execution of an order by a Revenue
authority or Civil Court or arbitrator in such proportion as such
authority, court or arbitrator directs.

Adjudication as to Stamps

Adjudication as to proper stamps.- (1) When any instrument, whether executed

or not and whether previously stamped or not is brought to the Deputy
Commissioner and the person bringing it applies to have the opinion of that officer
as to the duty (if any) with which it is chargable and pays a fee of such amount not
exceeding (seven rupees and fifty paise) as the Deputy Commissioner may in each
case direct, the Deputy Commissioner shall determine the duty (if any) with which,
in his judgement, the instrument is chargable.

65
(2) For this purpose the Deputy Commissioner may require to be furnished with an
abstract of the instrument, and also with such affidavit or other evidence as he may
deem necessary to prove that all the facts and circumstances affecting the
chargability of the instrument with duty or the amount of the duty with which it is
chargable are fully and truly set forth therein, and may refuse to proceed upon any
such application, until such abstract and evidence have been furnished
accordingly:

(a) no evidence furnished in pursuance of this section shall be used against any
person in any civil proceeding except in any enquiry as to the duty with
which the instrument to which it relates is chargable; and

(b) every person by whom any such evidence is furnished, shall, on payment of
the full duty with which instrument to which it relates, is chargable, be
relieved from any penalty which he may have incurred under this Act by
reason of the facts or circumstances aforesaid.

Certificate by Deputy Commissioner. – When an instrument brought to the

Deputy Commissioner under Section 31 is in his opinion, one of a description
chargable with duty, and

(a) the Deputy Commissioner determines that it is fully stamped;

(b) the duty determined by the Deputy Commissioner under Section 31 or such
a sum as, with the duty already paid in respect of the instrument, is equal to
the duty so determined, has been paid, the Deputy Commissioner shall
certify by endorsement on such instrument that the full duty stating the
amount with which it is chargable has been paid.

When such instrument is, in his opinion, not chargable with duty, the Deputy
Commissioner shall certify in manner aforesaid that such instrument is not so
chargable.

Subject to any orders made under Chapter IV, any instrument upon which an
endorsement has been made under this section shall be deemed to be duly stamped
or not chargable with duty, as the case may be; and, if chargable with duty, shall
be receivable in evidence or otherwise and may be acted upon and registered as if
it had been originally duly stamped;

Provided that nothing in this section shall authorise the Deputy Commissioner to
endorse-

(a) any instrument executed or first executed in India and brought to him after
the expiration of one month from the date of its execution, or first
execution, as the case may be;

66
 (b) any instrument executed or first executed out of Inda and brought to him
after expiration of three months after it has been first received in the State
of Karnataka; or

(c) any instrument chargable with a duty not exceeding (fifteen paise) or a
mortgage of crop (Art.35 (a) of the Schedule) chargable under Cl.(a) or Cl.
(b) of Sec. 3 with a duty of twenty-five paise, when brought to him, after
the executing thereof, on paper not duly stamped.

CHAPTER IV

Instruments not duly Stamped

Examination and impounding of instruments.- (1) Every person having by law

or consent of parties authority to receive evidence, and every person in charge of a
public office, except an officer of police, before whom any instrument, chargable
in his opinion with duty, is produced or comes in the performance of his functions,
shall, if it appears to him that such instrument is not duly stamped, impound the
same.

(2) For that purpose every such person shall examine every instrument so
chargable and so produced or coming before him, in order to ascertain whether it is
stamped with a stamp of the value and description required by the law in force in
the State of Karnataka when such instrument was executed or first executed:

Provided that -

(a) nothing herein contained shall be deemed to require any Magistrate or

Judge of a Criminal Court to examine or impound, if he does not think
fit so to do, any instrument coming before him in the course of any
proceeding other than a proceeding under Chapters XII or Chapter
XXXVI of the Code of Criminal Procedure, 1898:
(b) in the case of a Judge of the High Court, the duty of examining and
impounding any instrument under this section may be delegated to such
officer as the Court appoints in this behalf.

(3) For the purposes of this section, in cases of doubt, the Government may
determine-

(a) what offices shall be deemed to be public offices; and

(b) who shall be deemed to be persons in charge of public offices.

Instruments not duly stamped inadmissible in evidence, etc. - No instrument

chargable with duty shall be admitted in evidence for any purpose by any person
having by law or consent of parties authority to receive evidence, or shall be acted

67
upon, registered or authenticated by any such person or by any public officer,
unless such instrument is duly stamped:

Provided that-

(a) any such instrument not being an instrument chargable [with a duty not
exceeding fifteen paise only, or a mortgage or crop (Art.35(a) of the
Schedule] chargable under Cls (a) and (b) of Sec. 3 with a duty of twenty-
five paise shall subject to all just exceptions, be admitted in evidence on
payment of the duty with which, the same is chargable, or in the case of an
instrument insufficiently stamped, of the amount required to make up such
duty, together with a penalty of five rupees, or, when ten times the amount
of the proper duty or deficient portion thereof exceeds five rupees, of a sum
equal to ten times such duty or portion;

(b) where a contract or agreement of any kind is effected by correspondence

consisting of two or more letters and any one of the letters bears the proper
stamp, the contract or agreement shall be deemed to be duly stamped;

(c) nothing herein contained shall prevent the admission of any instrument in
evidence in any proceeding in a criminal court, other than a proceeding
under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure,
1898,

(d) nothing herein contained shall prevent the admission of any instrument in
any Court when such instrument, has been executed by or on behalf of the
Government, or where it bears the certificate of the (Deputy
Commissioner) as provided by Sec.32 or any other provision of this Act
and such certificate has not been revised in exercise of the powers
conferred by the provision of Chapter Vi.

Admission of instrument where not to be questioned. – Where an instrument

has been admitted in evidence such admission shall not, except as provided in Sec.
58, be called in question at any stage of the same suit or proceeding on the ground
that the instrument has not been duly stamped.

Admission of improperly stamped instruments.- The State Government make

rules providing that, where an instrument bears a stamp of sufficient amount but of
improper description, it may, on payment of the duty with which the same is
chargable be certified to be duly stamped, and any instrument so certified shall
then be deemed to have been duly stamped as from the date of its execution.

Instruments impounded how dealt with. – (1) When the person impounding an
instrument under Sec. 33 has by law or consent of parties authority to receive
evidence and admits such instrument in evidence upon payment of a penalty as

68
provided by Sec. 34 or of duty as provided by Sec. 36, he shall send to the Deputy
Commissioner an authenticated copy of such instrument, together with a certificate
in writing stating the amount of duty and penalty levied in respect thereof, and
shall send such amount to the Deputy Commissioner or to such person as he may
appoint in this behalf.

(2) In every other case, the person so impounding an instrument shall send it in
original to the Deputy Commissioner.

Deputy Commissioner’s power to refund penalty paid under sub-section (1) of

Sec. 37 - (1) When a copy of an instrument is sent to the Deputy Commissioner
under sub-section (1) of Sec. 37, he may, if he thinks fit, refund any portion of the
penalty in excess of five rupees which has been paid in respect of such instrument.

(2) When such instrument has been impounded only because it has been written in
contravention of Sec. 13 or Sec. 14, the Deputy Commissioner may refund the
whole penalty so paid.

Deputy Commissioner’s power to stamp instruments impounded.-

(1) When the Deputy Commissioner impounds any instrument under Sec. 33, or
receives any instrument sent to him under sub-section (2) of Sec. 37, not being an
instrument chargable with a duty of not exceeding fifteen paise only or a mortgage
of crop [Art. 35 (a) of the Schedule] chargable under Cl.(a) or Cl (b) of Sec. 3 with
a duty of twenty-five paise, he shall adopt the following procedure:

(a) if he is of opinion that such instrument is duly stamped, or is not

chargable with duty, he shall certify by endorsement therein that it is
duly stamped, or that it is not so chargable, as the case may be;

(b) if he is of opinion that such instrument is chargable with duty and is not
duly stamped he shall require the payment of the proper duty or the
amount required to make up the same, together with a penalty of five
rupees; or if he thinks fit, (an amount not exceeding ten times, the
amount of the proper duty or of the deficient portion thereof, whether
such amount exceeds or falls short of five rupees:

Provided that, when such instrument has been impounded only because it has been
written in contravention of Sec. 13 or Sec. 14, the Deputy Commissioner may, if
he thinks fit, remit the whole penalty prescribed by this section.

(2) Subject to any order made under Chapter VI, every certificate under Cl. (a) of
sub-section (1) shall, for the purpose of this Act be conclusive evidence of the
matters stated therein.

69
(4) Where an instrument has been sent to the Deputy Commissioner under sub-
section (2) of Sec. 37, the Deputy Commissioner shall, when he has dealt with
it as provided by this section, return it to Impounding Officer.

Instruments unduly stamped by accident. - If any instrument chargable with

duty, and not duly stamped, not being an instrument chargable with a duty not
exceeding fifteen paise or a mortgage of crop (Art. 35(a) of the Schedule)
chargable under Cl. (a) or Cl (b) of Sec. 3 with a duty of twenty-five paise is
produced by any person of his own motion before the Deputy Commissioner
within one year from the date of its execution or first execution and such person
brings to the notice of the Deputy Commissioner the fact that such instrument is
not duly stamped and offers to pay the Deputy Commissioner the amount of the
proper duty, or the amount required to make up the same, and the Deputy
Commissioner is satisfied that the omission to duly stamp such instrument has
been occasioned by accident, mistake or urgent necessity, he may, instead of
proceeding under Secs 33 and 39, receive such amount and proceed as next
hereinafter prescribed.

Endorsement of instruments on which duty has been paid under Sec. 34, Sec.
39 or Sec. 40. – (1) When the duty and penalty (if any) leviable in respect of any
instrument have been paid under Sec. 34, Sec. 39 or Sec. 40, the person admitting
such instrument in evidence of the Deputy Commissioner as the case may be, shall
certify by endorsement thereon that the proper duty or, as the case may be, the
proper duty and penalty (stating the amount of each) have been levied in respect
thereof and the name and residence of the person paying them.

(2) Every instrument so endorsed shall thereupon be admissible in evidence; and

may be registered and acted upon and authenticated as if it had been duly stamped
and shall be delivered on his application in this behalf of the person from whose
possession it came into the hands of the officer impounding it, or as such person
may direct:

Provided that-
(a) no instrument which has been admitted in evidence upon payment of
duty and a penalty under Sec.34, shall be so delivered before the
expiration of one month from the date of such impounding, or if the
Deputy Commissioner has certified that its further detention is
necessary and has not cancelled such certificate;

(b) nothing in this section shall affect Order XIII, rule 9 of the First
Schedule to the Code of Civil Procedure, 1908.

Instrument of conveyance, etc. under value how to be dealt with.-

(1) The registering officer appointed under the Registration Act, 1908 (Central Act
XVI of 1908) while registering any instrument of conveyance, exchange or gift has
reason to believe that the market value of the property which is the subject-matter

70
of conveyance, exchange or gift has not been truly set forth in the instrument, he
may, after registering such instrument, refer the same to the Deputy Commissioner
for determination of the market value of such property and the proper duty payable
thereon.

(2) On receipt of a reference under sub-section (1), the Deputy Commissioner shall
after giving the parties a reasonable opportunity of being heard and after holding
an inquiry in such manner as the State Government may be rules prescribe,
determine by order the market value of the property which is the subject matter of
conveyance, exchange or gift and the duty payable thereon. The difference, if any,
in the amount of duty, shall be payable by the person liable to pay the duty.

(3) The Deputy Commissioner may, suo motu within two years from the date of
registration of any instrument of conveyance, exchange or gift not already referred
to him under sub-section (1), call for and examine the instrument for the purpose
of satisfying himself as to the correctness of the market value of the property
which is the subject matter of conveyance, exchange or gift, and the duty payable
thereon and if after such examination he has reason to believe that the market
value of such property has not been truly set forth in the instrument, he may
determine by order the market value of such property and the duty payable thereon
in accordance with the procedure provided for in sub-section (2). The difference,
if any, in the amount of duty, shall be payable by the persons liable to pay the
duty:

Provided that nothing in this sub-section shall apply to any instrument registered
before the commencement of the Karnataka Stamp (Amendment) Act, 1975.

(4) The order of the Deputy Commissioner under sub-section (2) or sub-section (3)
shall be communicated to the person liable to pay the duty. A copy of every such
order shall be sent to the registering officer concerned.

(5) Any person aggrieved by an order of the Deputy Commissioner under sub-
section (2) or sub-section (3), may prefer an appeal before the District Judge
and all such appeals shall be preferred within such time and be heard and
disposed of in such manner as the State Government may, by rules, prescribe.

Explanation.- For the purpose of this Act, market value of any property shall be
estimated to be the price which in the opinion of the Deputy Commissioner or the
appellate authority, as the case may be, such property would have fetched or fetch,
if sold in the open market on the date of execution of the instrument of
conveyance, exchange or gift.

CHAPTER –V

Allowances for Stamps in certain cases

71
Allowances for spoiled stamps.- Subject to such rules as may be made by the
State Government as to evidence to be required, or the enquiry to be made, the
Deputy Commissioner may, on application made within the period prescribed in
Sec. 48, and if he is satisfied as to the fats, make allowance for impressed stamps
spoiled in the cases hereinafter mentioned, namely:

(a) the stamps on any paper inadvertently and undesignedly spoiled,

obliterated or by any error in writing or any other means rendered unfit
for the purpose intended before any instrument written thereon is
executed by any person;

(b) the stamp on any document which is written out wholly or in part, but
which is not signed or executed by any party thereto;

(c) the stamp used for an instrument executed by any party thereto which-
(1) has been afterwards is found to be absolutely void in law from
the beginning;
(2) has been afterwards found unfit, by reason of any error or
mistake therein, for the purpose originally intended;
(3) by reason of the death of any person by whom it is necessary
that it should be executed without having executed the same, or
of the refusal of any such person to execute the same cannot be
completed so as to effect the intended transaction in the form
proposed;
(4) for want of the execution thereof by some material party and his
inability or refusal to sign the same, is in fact incomplete and
insufficient for the purpose for which it was intended;
(5) by reason of the refusal of any person to act under the same, or
to advance any money intended to be thereby secured, or by the
refusal or non-acceptance of any office, thereby granted, totally
fails of the intended purpose;
(6) becomes useless in consequence of the transaction intended to
be thereby effected by some other instrument between the same
parties and bearing a stamp of not less value;
(7) is deficient in value and the transaction intended to be thereby
effected has been effected by some other instrument between
the same parties and bearing a stamp of not less value;
(8) is inadvertently and undesigndly spoiled, and in lieu whereof
another instrument made between the same parties and for the
same purpose, is executed and duly stamped.

Explanation: The certificate of the Deputy Commissioner under Sec. 32 that the
full duty with which an instrument is chargable has been paid, is an impressed
stamp within the meaning of this section.

72
 THE KARNATAKA STAMP ACT, 1957

By ARVIND RAGHAVAN,
ADVOCATE

The Karnataka Stamp Act 1957 is broadly based on the Indian Stamp Act
1899. The aforesaid Act came into force on the 5th day of December 1957
and extends to the whole state of Karnataka. In this paper, certain relevant
and important sections of the Act have been reproduced and important case
laws have been referred to wherever required.

Section (2) - Definitions – (1) In this Act, unless the context otherwise
requires,-

(a) “Assistant Commissioner of Stamps” means the Inspector of Registration

Offices appointed under Registration Act, 1908 (Central Act 16 of 1908) and
includes such officer in such areas as the State Government may by
notification specify.

(aa) “Association” means any association, exchange, organization or body of

individuals, whether incorporated or not, established for the purpose of
regulating and controlling or conducting business of the sale or purchase of, or
other transaction relating to any goods or marketable securities.

(ab) “bond” includes-

(i) any instrument whereby a person obliges himself to pay money to
another, on condition that the obligation shall be void if a specified act is
performed or is not performed, as the case may be;

(ii) any instrument attested by a witness and not payable to order or

bearer, whereby a person obliges himself to pay money to another; and

(iii) any instrument so attested, whereby a person obliges himself to

deliver grain or other agricultural produce to another.

(ac) “Central Valuation Committee” means, the Central Valuation Committee

constituted under Section 45-B.

(b) “chargeable” means, as applied to an instrument executed or first executed

after the commencement of this Act, chargeable under this Act, and as applied
to any other instrument chargeable under the law in force in the territories of
the State of Karnataka when such instrument was executed or, where several
persons executed the instrument at different times, first executed;

(c) “Chief Controlling Revenue Authority” means the officer appointed by the
State Government to be the Commissioner of Stamps for Karnataka;

73
(ca) “Clearance List” means a list of transactions relating to contracts either
maintained by an association or an individual or required to be submitted to
the Clearing House of an association in accordance with the rules or bye-laws
of the association and shall always mean to include all the transactions
pertaining to sale as well as purchase of marketable securities.

(d) “Conveyance” includes;

i) a conveyance on sale
ii) every instrument
iii) every decree or final order of any Civil Court
iv) every order made by the High Court under Section 394 of the
Companies Act 1956 in respect of amalgamation of companies
by which property, whether moveable or immovable or any estate is transferred
to or vested in any other person and which is not otherwise specifically
provided for by the schedule.

(dd) “Deputy Commissioner” means the Chief Officer in charge of the revenue
administration of a district and includes in respect of such provisions of this
Act or rules made thereunder such officer in such area as the State
Government may, by notification in the official Gazette, specify;

(e) “duly stamped” as applied to an instrument means that the instrument

bears an adhesive or impressed stamp of not less than the proper amount and
that such stamp has been affixed or used in accordance with the law for the
time being in force in the territories of the State of Karnataka

(f) “executed” and “execution” used with reference to instruments, means

“signed” and “signature”;

(g) “Government security” means a Government security as defined in the

Public Debt Act, 1944 (Central Act XVIII of 1944);

(gg) “Immovable Property” includes land, buildings, rights to ways, air rights,
development rights, whether transferable or not, benefits to arise out of land,
and things attached to the earth or permanently fastened to anything attached
to the earth.
(h) “impressed stamp” means:-
(i) impression made with franking machine.
(ii) a certificate or endorsement made and attested as may be
prescribed by the Deputy Commissioner or the Authorised Officer or the
proper officer, as the case may be in the territories of the State of
Karnataka.

(i) “India” means the territory of India excluding the State of Jammu and
Kashmir;

74
(j) “instrument” includes every document by which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished or
recorded;
(k) “instrument of partition” means any instrument whereby co-owners of any
property divide or agree to divide such property in severalty and includes-
(i) a final order for effecting a partition passed by any revenue authority
or any civil court,
(ii) an award by an arbitrator directing a partition, and
(iii) when any partition is effected without executing any such
instrument, any instrument or instruments, signed by the co-owners
and recording, whether by way of declaration of such partition or
otherwise, the terms of such partition amongst the co-owners;

(l) “lease” means of immovable property, and includes also –

(i) a patta,
(ii) a kabuliyat or other undertaking in writing not being a
counterpart of a lease to cultivate, occupy or pay or deliver rent for,
immovable property,
(iii) any instrument by which tools of any description are let,
(iv) any writing on an application for a lease intended to signify that
the application is granted,

(m) “marketable security” means a security of such a description as to be

capable of being sold in any stock market in India;

(mm) “Market Value” in relation to any property, which is the subject matter of
an instrument, means the price which such property would have fetched, in the
opinion of the Deputy Commissioner or the Appellate Authority or the Chief
Controlling Revenue Authority, if sold in open market on the date of execution
of such instrument or the consideration stated in the instrument, whichever is
higher.

Provided that notwithstanding anything contained in this Act or in

the Articles, in respect of an instrument executed by or on behalf of or in favour
of the State Government or the Central Government or a local authority or
other authority constituted by or under any law for the time being in force or a
Body incorporate wholly owned or controlled by the Central Government or the
State Government the market value of the property shall be the value of
consideration for such conveyance as set forth in the instrument.

(n) “mortgage deed” includes every instrument whereby, for the purpose of
securing money advanced or to be advanced, by way of loan, or an existing or
future debt, or the performance of an engagement, one person transfers, or
creates, to or in favour of another, a right over or in respect of specified
property;

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(o) “paper” includes vellum, parchment or any other material on which an
instrument may be written;

(p) “power-of-attorney” includes any instrument (not chargable with a fee under
the law relating to court-fees for the time being in force) empowering a
specified person to act for and in the name of the person executing it;
(q) “settlement” means any non-testamentary disposition in writing, of movable
or immovable property made-
(i) in consideration of marriage,
(ii) for the purpose of distributing property of the settlor among his
family or those for whom the desires to provide, or for the purpose
of providing for some person dependent on him, or
(iii) for any religious or charitable purpose,

and includes an agreement in writing to make such a disposition and, where

any such disposition has not been made in writing, any instrument recording
whether by way of declaration, of trust or otherwise, the terms of any such
disposition.

(r) “stamp” means impressed stamp and “stamp paper” means a paper
bearing the impressed stamp

Case Law: (1) Section 2(1)(j): A Sale Certificate issued under Or.21, R.94 CPC
is not an instrument of sale and additional stamp duty cannot be imposed
thereon under Section 164 of Mysore Village Panchayats and Local Boards Act
(1968) 1 Mys. L.J 200.

(2) In the case of Channamma and others v Shantkumar, 2004(2) Kar. L.J.
227, ILR 2004(2) Kar. 1052 it has been held that if any map is issued by a
local authority and produced as evidence in a Court of Law for the purpose of
identifying the property, it cannot be rejected as evidence on the ground that it
is not duly stamped.

Section – 3: Instruments chargeable with duty: Subject to the provisions of this

Act and the exemptions contained in the schedule, the following instruments
shall be chargable with duty of the amount indicated in that schedule as the
proper duty therefore, respectively, that is to say,-

a) every instrument mentioned in that schedule which, not having been

previously executed by any person, is executed in the territories of the
State of Karnataka on or after the commencement of this Act
c. every instrument mentioned in that schedule which, not having
been previously executed by any person, is executed out of the
State of Karnataka on or after that day, relates to any property
situate, or to any matter or thing done or to be done, in the
territories of the State of Karnataka and is received in the
territories of the State of Karnataka:

76
Provided that no duty shall be chargable in respect of

(3) any instrument executed by, or on behalf of, or in favour of the State
Government in cases where, but for his exemption, the State
Government would be liable to pay the duty chargable in respect of
such instrument;
(4) any instrument for sale, transfer or other disposition, either absolutely
or by way of mortgage or otherwise, of any ship or vessel or any part,
interest, share or property of or in any ship or vessel registered under
(The Merchant Shipping Act, 1958).

Explanation: Where no proper duty has been paid on the original of an

instrument which is chargeable with an amount indicated in the Schedule as
proper duty therefor, then a copy of such instrument whether certified or not
and whether a facsimile image or otherwise of the original shall be chargeable
with duty of an amount which is indicated in Schedule as proper duty for the
original of such instrument, and all the provisions of this Chapter II and
Chapters IV, VI, VII and VIII of this Act shall mutatis mutandis be applicable to
such copy of the original.

Section 3B – Certain instruments chargeable with additional duty (1) Any

instrument of conveyance exchange, settlement, gift or lease in perpetuity of
immovable property chargeable with duty under Section 3 read with articles of
the schedule shall be chargeable with additional duty at the rate of ten per
cent on such duty chargeable on such instrument of conveyance exchange,
gift, settlement and lease in perpetuity for the purpose of various infrastructure
projects across the State, equity investment in Bangalore Mass Rapid
Transport Limited and for Mukhya Manthri Grameena Rasthe Abhivruddhi
Nidhi in the proportion of 57:28:15 respectively.

(2) The additional duty chargeable under sub-section (1) shall be in addition to
any duty chargeable under Section 3
(3) Except as otherwise provided in sub-section (1) provisions of this Act, shall
so far as may be apply in relation to the additional duty chargeable under sub-
section (1) as they apply in relation to the duty chargeable under Section 3.

Section 3C – Limit on levy of additional stamp duty: Notwithstanding anything

contained in any other law for the time being in force, no instrument shall be
charged with any duty in the form of additional stamp duty under such other
law, exceeding the maximum amount of duty with which such instrument is
chargeable under this Act.

Section 9 – Power to reduce, remit or compound duties: (1) The State

Government may by rule or order published in the Official Gazette:
i. reduce upto fifty percent or retrospectively in the whole or any
part of the State of Karnataka, if in the opinion of the State

77
 Government it is necessary in public interest so to do, the duties
with which any particular class of instruments, or any of the
instruments belonging to such class, or any instruments when
executed by or in favour of any particular class of persons or by
or in favour of any members of such class, are chargeable and
Provided that the State Government may in public interest reduce or
remit the stamp duty payable on an instrument executed to obtain loan:

(i) by any person for an agricultural purpose as defined in the

Karnataka Agricultural Credit Operations Miscellaneous
Provisions Act, 1974 (Karnataka Act 2 of 1975) and
(ii) by a public sector undertaking for the purpose for which it is
established.

Provided further that the State Government may in public interest

reduce or remit by notification till 31st March 2011, the stamp duty
payable on any instrument, to be specified therein executed by,
specified new tiny, small scale, medium scale or large scale industrial
units of Mega projects as defined in the New Industrial Policy specified
in Government Order No.CI 319 SPI 2005, dated:26/08/2006 or by
such key projects of core area as defined in the said policy or specified
by the State Government from time to time.

Provided also that the State Government may in public interest reduce
or remit by notification, the stamp duty payable on any instrument to be
specified therein executed by or in favour of Rajiv Gandhi Housing
Corporation in connection with implementation of housing programme
for the economically weaker sections and special occupational
categories both in rural and urban area except for India Avaz Yojana, for
the purpose of providing residential facilities with capital investment by
the State Government and loan borrowed from Housing and Urban
Development Corporation
ii. provide for the composition or consolidation of duties in the case
of issues by any incorporated company or other body corporate
of bonds or other marketable securities.

1-A Notwithstanding anything contained in any other law for the time
being in force, no reduction or remission of stamp duty shall be allowed
unless it is notified in accordance with sub-section (1)

(2) Every rule or order published under clause (a) of sub-section (1)
shall be laid as soon as may be after it is published before each House
of the State Legislature while it is in session for a total period of thirty
days which may be comprised in one session or in two successive
sessions, and if before the expiry of the session in which it is so laid or
the session immediately following both Houses agree in making
modification in the rule or order or both Houses agree that the

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 thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment
shall be without prejudice to the validity of anything previously done
under that rule or order.

Section 16 – Denoting duty: Where the duty with which an instrument is

chargeable or its exemption from duty, depends in any manner upon the duty
actually paid in respect of another instrument, the payment of such last
mentioned duty shall, if application is made in writing to the Deputy
Commissioner for that purpose and on production of both the instruments, be
denoted upon such first mentioned instrument by endorsement under the
hand of the Deputy Commissioner or in such other manner, if any, as the State
Government may by rules prescribe.

Section 17 – Instruments executed in the State of Karnataka: All instruments

chargeable with duty and executed by any person in the State of Karnataka
shall be stamped before or at the time of execution.

Provided that nothing in this section shall apply to an instrument in respect of

which stamp duty has been paid under Section 10-A.

Section 18 – Instruments executed out of India: (1) Every instrument

chargeable with duty executed only out of India may be stamped within three
months after it has been first received in the State of Karnataka.

(2) Where any such instrument cannot, with reference to the description of
stamp, prescribed therefore, be duly stamped by a private person, it may be
taken within the said period of three months to the Deputy Commissioner who
shall stamp the same, in such manner as the Government may by rule
prescribe, with a stamp of such value as the person so taking such instrument
may require and pay for.

Section 19 – Payment of duty on certain instruments liable to increased duty

in the State of Karnataka: Where any instrument of the nature described in
any Article in the Schedule and relating to any property situate or to any matter
or thing done or to be done in the State of Karnataka is executed out of the
said State and subsequently received in the said State:-

a) The amount of duty chargeable on such instrument shall be the amount

of duty chargeable under the Schedule on a document of the like
description executed in the State of Karnataka less the amount of duty,
if any, already paid on such instrument in any other State in India.
b) And in addition to the stamps, if any, already affixed thereto, such
instrument shall be stamped with the stamps necessary for the
payment of the duty chargeable on it under clause (a) of this section, in
the same manner and at the same time and by the same persons as
though such instrument were an instrument received in the State of

79
 Karnataka for the first time at the time when it became chargeable with
the higher duty, and
c) The provisions contained in clause (b) of the provisions to sub-section
(3) of Section 32 shall apply to such instrument as if such were an
instrument executed or first executed out of India and first received in
the State of Karnataka when it became chargeable to the higher duty
aforesaid, but the provisions shall not apply thereto.

Section 30 – Duties by whom payable: In the absence of an agreement to the

contrary, the expense of providing the proper stamp shall be borne, -

(g) in the case of any instrument described in any of the following

Articles of the Schedule, namely:
No. 2 (Administration Bond)
No. 6 (Agreement relating to deposit of title deeds, pawn or pledge),
No. 12 (Bond)
No. 13 (Bottomry Bond)
No. 23 (Customs Bond)
No. 27 (Further charge)
No. 29 (Indemnity Bond)
No. 34 (Mortgage Deed)
No. 45 (Release)
No. 46 (Respondentia Bond)
No. 47 (Security Bond or Mortgage Deed)
No. 48 (Settlement)
No. 52 (a) (Transfer of Debentures, being marketable securities, whether the
debenture is liable to duty or not);
No. 52 (b) (Transfer of any interest secured by a bond, mortgage deed or policy
of insurance);

By the person drawing, making or executing such instrument;

(h) in the case of a conveyance (including a reconveyance of mortgaged

property) by the grantee; in the case of a lease or agreement to
lease – by the lessee or intended lessee;

(i) in the case of a counterpart of lease – by the lessor;

(j) in the case of an instrument of exchange – by the parties in equal

shares;

(dd) in the case of a certificate of enrolment in the roll of Advocates

maintained by the State Bar Council by the Advocate enrolled;

(k) in the case of a certificate of sale – by the purchaser of the property

to which such certificates relates; and

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 (f) in the case of an instrument of partition – by the parties thereto in
proportion to their respective shares in the whole property partitioned,
or, when the partition is made in execution of an order by a Revenue
authority or Civil Court or arbitrator in such proportion as such authority,
court or arbitrator directs.

Section 31 – Adjudication as to proper stamps: (1) When any instrument,

whether executed or not and whether previously stamped or not is brought to
the Deputy Commissioner and the person bringing it applies to have the
opinion of that officer as to the duty (if any) with which it is chargable and pays
a fee of such amount not exceeding (seven rupees and fifty paise) as the
Deputy Commissioner may in each case direct, the Deputy Commissioner shall
determine the duty (if any) with which, in his judgement, the instrument is
chargable.

(2) For this purpose the Deputy Commissioner may require to be furnished with
an abstract of the instrument, and also with such affidavit or other evidence as
he may deem necessary to prove that all the facts and circumstances affecting
the chargability of the instrument with duty or the amount of the duty with
which it is chargable are fully and truly set forth therein, and may refuse to
proceed upon any such application, until such abstract and evidence have
been furnished accordingly:

81
 Provided that:
(c) no evidence furnished in pursuance of this section shall be used
against any person in any civil proceeding except in any enquiry as to
the duty with which the instrument to which it relates is chargable; and

(d) every person by whom any such evidence is furnished, shall, on

payment of the full duty with which instrument to which it relates, is
chargable, be relieved from any penalty which he may have incurred
under this Act by reason of the facts or circumstances aforesaid.

Section 32 – Certificate by Deputy Commissioner: (1) When an instrument

brought to the Deputy Commissioner under Section 31 is in his opinion, one of
a description chargable with duty, and

(c) the Deputy Commissioner determines that it is fully stamped;

(d) the duty determined by the Deputy Commissioner under Section 31 or
such a sum as, with the duty already paid in respect of the instrument,
is equal to the duty so determined, has been paid,
the Deputy Commissioner shall certify by endorsement on such instrument
that the full duty stating the amount with which it is chargable has been
paid.

(2) When such instrument is, in his opinion, not chargable with duty, the
Deputy Commissioner shall certify in manner aforesaid that such instrument is
not so chargable.

(3) Subject to any orders made under Chapter IV, any instrument upon which
an endorsement has been made under this section shall be deemed to be duly
stamped or not chargable with duty, as the case may be; and, if chargable with
duty, shall be receivable in evidence or otherwise and may be acted upon and
registered as if it had been originally duly stamped;

Provided that nothing in this section shall authorise the Deputy Commissioner
to endorse-

(d) any instrument executed or first executed in India and brought to him
after the expiration of one month from the date of its execution, or first
execution, as the case may be;

(e) any instrument executed or first executed out of Inda and brought to
him after expiration of three months after it has been first received in
the State of Karnataka; or

(f) any instrument chargable with a duty not exceeding (fifteen paise) or a
mortgage of crop (Art.35 (a) of the Schedule) chargable under Cl.(a) or
Cl. (b) of Sec. 3 with a duty of twenty-five paise, when brought to him,
after the executing thereof, on paper not duly stamped.

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Section 33 - Examination and impounding of instruments.- (1) Every person
having by law or consent of parties authority to receive evidence, and every
person in charge of a public office, except an officer of police, before whom
any instrument, chargable in his opinion with duty, is produced or comes in the
performance of his functions, shall, if it appears to him that such instrument is
not duly stamped, impound the same.

(2) For that purpose every such person shall examine every instrument so
chargable and so produced or coming before him, in order to ascertain
whether it is stamped with a stamp of the value and description required by
the law in force in the State of Karnataka when such instrument was executed
or first executed:

Provided that -

(c) nothing herein contained shall be deemed to require any Magistrate

or Judge of a Criminal Court to examine or impound, if he does not
think fit so to do, any instrument coming before him in the course of
any proceeding other than a proceeding under Chapters XII or
Chapter XXXVI of the Code of Criminal Procedure, 1898:
(d) in the case of a Judge of the High Court, the duty of examining and
impounding any instrument under this section may be delegated to
such officer as the Court appoints in this behalf.

(3) For the purposes of this section, in cases of doubt, the Government may
determine-

(c) what offices shall be deemed to be public offices; and

(d) who shall be deemed to be persons in charge of public offices.

Section 34 - Instruments not duly stamped inadmissible in evidence, etc. - No

instrument chargable with duty shall be admitted in evidence for any purpose
by any person having by law or consent of parties authority to receive evidence,
or shall be acted upon, registered or authenticated by any such person or by
any public officer, unless such instrument is duly stamped:

Provided that-

(e) any such instrument not being an instrument chargable [with a duty not
exceeding fifteen paise only, or a mortgage or crop (Art.35(a) of the
Schedule] chargable under Cls (a) and (b) of Sec. 3 with a duty of
twenty-five paise shall subject to all just exceptions, be admitted in
evidence on payment of the duty with which, the same is chargable, or
in the case of an instrument insufficiently stamped, of the amount
required to make up such duty, together with a penalty of five rupees,

83
 or, when ten times the amount of the proper duty or deficient portion
thereof exceeds five rupees, of a sum equal to ten times such duty or
portion;

(f) where a contract or agreement of any kind is effected by

correspondence consisting of two or more letters and any one of the
letters bears the proper stamp, the contract or agreement shall be
deemed to be duly stamped;

(g) nothing herein contained shall prevent the admission of any instrument
in evidence in any proceeding in a criminal court, other than a
proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal
Procedure, 1898,

(h) nothing herein contained shall prevent the admission of any instrument
in any Court when such instrument, has been executed by or on behalf
of the Government, or where it bears the certificate of the (Deputy
Commissioner) as provided by Sec.32 or any other provision of this Act
and such certificate has not been revised in exercise of the powers
conferred by the provision of Chapter VI.

Section 35 - Admission of instrument where not to be questioned. – Where an

instrument has been admitted in evidence such admission shall not, except as
provided in Sec. 58, be called in question at any stage of the same suit or
proceeding on the ground that the instrument has not been duly stamped.

Section 36: Admission of improperly stamped instruments.- The State

Government make rules providing that, where an instrument bears a stamp of
sufficient amount but of improper description, it may, on payment of the duty
with which the same is chargable be certified to be duly stamped, and any
instrument so certified shall then be deemed to have been duly stamped as
from the date of its execution.

Section 37: Instruments impounded how dealt with. – (1) When the person
impounding an instrument under Sec. 33 has by law or consent of parties
authority to receive evidence and admits such instrument in evidence upon
payment of a penalty as provided by Sec. 34 or of duty as provided by Sec. 36,
he shall send to the Deputy Commissioner an authenticated copy of such
instrument, together with a certificate in writing stating the amount of duty and
penalty levied in respect thereof, and shall send such amount to the Deputy
Commissioner or to such person as he may appoint in this behalf.

(2) In every other case, the person so impounding an instrument shall send
it in original to the Deputy Commissioner.

Section – 38: Deputy Commissioner’s power to refund penalty paid under sub-
section (1) of Sec. 37 - (1) When a copy of an instrument is sent to the Deputy

84
Commissioner under sub-section (1) of Sec. 37, he may, if he thinks fit, refund
any portion of the penalty in excess of five rupees which has been paid in
respect of such instrument.

(2) When such instrument has been impounded only because it has been
written in contravention of Sec. 13 or Sec. 14, the Deputy Commissioner may
refund the whole penalty so paid.
Section – 39: Deputy Commissioner’s power to stamp instruments
impounded.-

(1) When the Deputy Commissioner impounds any instrument under Sec. 33,
or receives any instrument sent to him under sub-section (2) of Sec. 37, not
being an instrument chargable with a duty of not exceeding fifteen paise only
or a mortgage of crop [Art. 35 (a) of the Schedule] chargable under Cl.(a) or Cl
(b) of Sec. 3 with a duty of twenty-five paise, he shall adopt the following
procedure:

(c) if he is of opinion that such instrument is duly stamped, or is not

chargable with duty, he shall certify by endorsement therein that it is
duly stamped, or that it is not so chargable, as the case may be;

(d) if he is of opinion that such instrument is chargable with duty and is

not duly stamped he shall require the payment of the proper duty or
the amount required to make up the same, together with a penalty
of five rupees; or if he thinks fit, (an amount not exceeding ten
times, the amount of the proper duty or of the deficient portion
thereof, whether such amount exceeds or falls short of five rupees:

Provided that, when such instrument has been impounded only because it has
been written in contravention of Sec. 13 or Sec. 14, the Deputy Commissioner
may, if he thinks fit, remit the whole penalty prescribed by this section.

(2) Subject to any order made under Chapter VI, every certificate under Cl. (a)
of sub-section (1) shall, for the purpose of this Act be conclusive evidence of
the matters stated therein.

(3) Where an instrument has been sent to the Deputy Commissioner under
sub-section (2) of Sec. 37, the Deputy Commissioner shall, when he has dealt
with it as provided by this section, return it to Impounding Officer.

Section – 45A: Instrument of conveyance, etc. under value how to be dealt

with.- (1)If the registering officer appointed under the Registration Act, 1908
(Central Act XVI of 1908) while registering any instrument of conveyance, gift,
exchange of property, settlement, reconstitution of partnership, dissolution of
partnership, an agreement to sell covered under sub-clause (i) of clause (e) of
Article 5, a lease covered under item (vi) of sub-clause (a) item (ii) of sub-

85
clause (b) and item (ii) of sub-clause (c) and of sub-clause (d) of clause (i) of
Article 30, a power of attorney covered under clause (eb) and clause (ea) of
Article 41, release, conveyance under decree or final order of any Civil Court,
has reason to believe, agreement, award, trust

having regard to the estimated value published by the Committee constituted

under Section 45-B, if any, or otherwise, that the market value of the property
which is the subject matter of such instrument has not been truly set forth, he
shall after arriving at the estimated market value, communicate the same to
the parties and unless the parties pay the duty on the basis of such valuation,
shall keep pending the process of registration and refer the matter along with
a copy of such instrument to the Deputy Commissioner for determination of
the market value of the property and the proper duty payable thereon.

(2) On receipt of a reference under sub-section (1), the Deputy Commissioner

shall after giving the parties a reasonable opportunity of being heard and after
holding an inquiry in such manner as the State Government may be rules
prescribe, determine by order as far as may be within ninety days from the
date of receipt of such reference the market value of the property which is the
subject matter of instrument specified in sub-section (1) and the duty payable
thereon. The difference, if any, in the amount of duty, shall be payable by the
person liable to pay the duty with interest at twelve per cent per annum if he
does not pay within ninety days from the date of order of the Deputy
Commissioner

Provided that the payment of interest is not applicable to instruments executed

prior to 31st day of March 2006.

(3) The Deputy Commissioner may, suo motu within two years from the date of
registration of any instrument of conveyance, exchange or gift not already
referred to him under sub-section (1), call for and examine the instrument for
the purpose of satisfying himself as to the correctness of the market value of
the property which is the subject matter of any instrument specified in sub-
section (1) and the duty payable thereon in accordance with the procedure
provided for in sub-section (2). The difference, if any, in the amount of duty,
shall be payable by the persons liable to pay the duty with interest at twelve
per cent per annum if he does not pay within ninety days from the date of
order of the Deputy Commissioner.

Provided that nothing in this sub-section shall apply to any instrument

registered before the commencement of the Karnataka Stamp (Amendment)
Act, 1975.

Provided further that the payment of interest is not applicable to instruments

executed prior to 31st day of March 2006.

86
(4) The order of the Deputy Commissioner under sub-section (2) or sub-section
(3) shall be communicated to the person liable to pay the duty. A copy of every
such order shall be sent to the registering officer concerned.

(4) Any person aggrieved by an order of the Deputy Commissioner under sub-
section (2) or sub-section (3), may prefer an appeal before the Regional
Commissioner and all such appeals shall be preferred within such time and
be heard and disposed of in such manner as the State Government may, by
rules, prescribe.

Provided that no appeal shall be admitted unless the person aggrieved has
deposited, in the prescribed manner, fifty per cent of the difference in the
amount of duty as determined by the Deputy Commissioner under sub-section
(2) or (3).

Provided further that whereafter the determination of the market value by the
Appellate Authority or determined again by the Deputy Commissioner on a
remand of the case, the stamp duty borne is found to be sufficient, the amount
deposited shall be returned to the person concerned.

Provided also that such person shall pay the difference in duty along with
interest at twelve per cent if he does not pay within ninety days from the date
of order of the Deputy Commissioner or sixty days from the date of order of the
Appellate Authority, so however, the payment of interest is not applicable to
instruments executed prior to eighteenth day of August 1999.

Case Law:
1. In the case of Sanjay Kumar v The Sub-Registrar and Another, 1989(2)
Kar. L.J.7 it was held that the Sub-Registrar must record reasons why
he beliefs the market value of the property concerned has not been
duly setout in the document presented for the registration. The Sub-
Registrar cannot simply record the market value of the property
according to him in a sheet and send the documents to the Deputy
Commissioner. The documents must be sent as an enclosure to the
order of reference. In the instant case, since the procedure was not
followed by the Sub-Registrar, the reference to the Deputy
Commissioner was held to be invalid.
2. In the case of Veerabhadrappa and Another v Jagadishgouda and
others 2002(5) Kar. L.J 55A, 2002(53) Kar. L.J. 246A it has been held
that where the stamp duty has been paid on the consideration shown in
the document, the Sub-Registrar has no powers to postpone or keep
pending the registration on the ground that the property covered in the
document is undervalued.
3. In the case of Sri Manjunatha Co-operative Housing Society Limited,
Dharwad and Others v State of Karnataka and Others, 2002(3) Kar. L.J.
74B it has been held that if an appeal is preferred under the proviso to
Section 45A(5) of the Karnataka Stamp Act 1957 to the Deputy

87
 Inspector General of Registration against an order of a Deputy
Commissioner under sub-section (2) and (3) of section 45A, the
requirement of pre-depositing 50% of the disputed amount by the
appellate is valid.

Section 45B – Constitution of Central Valuation Committee (1) The State

Government shall by notification, constitute a Central Valuation Committee,
under the Chairmanship of Inspector General of Registration and
Commissioner of Stamps for estimation, publication and revision of market
value guidelines of properties in any area in the State at such intervals and in
such manner as may be prescribed for the purposes of Section 45-A,

(2) The Central Valuation Committee is the final authority for the formulation of
policy, methodology and administration of the market value guidelines in the
State and may for the said purpose constitute market valuation sub-
committees in each sub-district and district comprising of such members as
may be prescribed, for estimation and revision of the market value guidelines
in the State.

(3) Sub-committees so constituted shall function under the Central Valuation

Committee and shall follow such procedures as may be prescribed and shall
be subject to reconstitution whenever found necessary.

Section 46 – Recovery of duties and penalties: (1) All duties penalties and
other sums required to be paid under this Chapter may be recovered along
with simple interest at such rate as may be specified by the State Government
by notification by the Deputy Commissioner by distress and sale of the
moveable property of the person from whom the same are due, or by any other
process for the time being in force for the recovery of arrears of land revenue.

(2) All duties, penalties and other sums required to be paid under this Chapter
shall be a charge on the property which is the subject matter of the instrument.

Provided that the provisions of sub-section (2) shall be deemed to apply to all
cases of which are pending recovery and to proceedings under sub-section (1)
which have already been initiated.

(3) Notwithstanding anything contained in the Registration Act, 1908 (Central

act XVI of 1908), a note of such charge and its extinguishment shall be made
in the indices prescribed therein and shall be deemed to be a notice under the
said Act.

Section 46A – Recovery of stamp duty not levied or short levied: (1) Where any
instrument chargeable with duty has not been duly stamped, the Chief
Controlling Revenue Authority or any other officer authorized by the State

88
Government hereinafter referred to as the authorized officer may, within five
years from the date of commencement of the Karnataka Stamp (Amendment)
Act 1980 or the date on which the duty became payable whichever is later,
serve notice on the person by whom the duty was payable requiring him to
show cause why the proper duty or the amount required to make up the same
should not be collected from him.

Provided that where the non-payment was by reason of fraud, collusion or any
willful mis-statement or suppression of facts or contravention of any of the
provisions of this Act or of the rules made thereunder with intent to evade
payment of duty, the provisions of this sub-section shall have effect, as if for
the words five years the words ten years were substituted.

Provided further that nothing in this sub-section shall apply to instruments

executed prior to First day of April 1972.

Explanation: (1) Where the service of a notice, under this sub-section is stayed
by an order of a Court, the period of such stay shall be excluded in computing
the aforesaid period of five years or ten years as the case may be.

(2) The Chief Controlling Revenue Authority or the authorized officer shall, after
considering the representation, if any, made by the person on whom notice is
served under sub-section (1), determine the amount of duty due from such
person (not being in excess of the amount specified in the notice) and
thereupon such person shall pay the amount so determined.

(3) Any person aggrieved by an order under sub-section (2), may prefer an
appeal before the Karnataka Appellate Tribunal within three months from the
date of such order.

(4) All duties payable under this section shall be recovered in accordance with
provisions of Section 46.

Section 46B – Duties, penalties etc., to be certified: All duties whether proper
or deficit, penalties, or any other sums paid or recovered under any of the
provisions of this Act shall be certified on the instruments in the manner
prescribed.

Section 53A – Revision of order passed by Deputy Commissioner or Authorised

Officers: (1) The Chief Controlling Revenue Authority may except where the
matter is pending before the Appellate Authority under this act, suo motu,
within a period of five years from the date of the order passed under this Act by
the Deputy Commissioner or such other office authorized by the State
Government in this behalf, call for and examine the records relating to such
order or proceedings taken under this Act by the Deputy Commissioner or the
authorized officer, and if after such examination it has reason to believe that
the order so made or proceedings so taken is erroneous or are not in
accordance with the provisions of this Act or prejudicial to the interest of the

89
revenue, it may after giving the parties interested an opportunity of being
heard, pass an order and direct the Deputy Commissioner or the authorized
officer, as the case may be to collect the difference of duty, if any payable, in
accordance with the provisions of Section 46.

Provided that in appropriate cases, the Chief Controlling Revenue Authority

may order stay of operation of the order under revision, pending hearing of the
case.

(2) The Chief Controlling Revenue Authority may for the purpose of sub-section
(1), require the concerned person to produce before it, the instrument and
examine such instrument to determine whether any duty is chargeable or the
duty is short levied or improperly levied on account of any willful mis-statement
or suppression of facts made or of contravention of any of the provisions of
this Act or rules made thereunder by such person with intent to evade payment
of duty.

Section 54 – Statement of case by Chief Controlling Revenue Authority to High

Court: (1) The Chief Controlling Revenue Authority may state any case referred
to it under sub-section (2) of Section 53 or otherwise coming to its notice and
refer such case, with its opinion thereon, to the High Court.

(2) Every such case shall be decided by not less than three judges of the High
Court, and in case of difference the opinion of the majority shall prevail.

Section 55 – Power of High Court to call further particulars as to case stated:

If the High Court is not satisfied that the statements contained in the case are
sufficient to enable it to determine the questions raised thereby, the Court may
refer the case back to the Revenue Authority by which it was stated, to make
such additions thereto or alterations therein as the Court may direct in that
behalf.

Section 56 – Procedure in disposing of case stated: (1) The High Court upon
the hearing of any such case, shall decide the questions raised thereby, and
shall deliver its judgment thereon containing the grounds on which such
decision is founded.

(2) The Court shall send to the Revenue Authority by which the case was
stated, a copy of such judgment under the seal of the Court and the signature
of the Registrar, and the Revenue Authority shall, on receiving such copy
dispose of the case conformably to such judgment.

Section 57 – Statement of case by other Courts to High Court: (1) If any Court,
other than the High Court, feels doubt as to the amount of duty to be paid in
respect of any instrument under proviso (a) to Section 34, the Judge may draw
up a statement of the case and refer it, with his own opinion thereon, for the
decision of the High Court.

90
 (2) Such Court shall deal with the case as if it had been referred under Section
54 and send a copy of its judgment under the seal of the Court and the
signature of the Registrar to the Chief Controlling Revenue Authority and
another like copy to the Judge making the reference, who shall, on receiving
such copy, dispose of the case conformably to such judgment.

(3) References made under sub-section (1), when made by a Court

subordinate to a District Court, shall be made through the District Court, and
when made by any subordinate Revenue Court, shall be made through the
Court immediately superior.

Section 58 – Revision of certain decisions of Courts regarding the sufficiency

of stamps: (1) When any Court in the exercise of its Civil or Revenue
jurisdiction or any Criminal Court in any proceeding under Chapter XII or
Chapter XXXVI of the Code of Criminal Procedure, 1898 makes any order
admitting any instrument in evidence as duly stamped or as not requiring a
stamp, or upon payment of duty and a penalty under Section 34, the Court to
which appeals lie from, or references are made by, such first mentioned Court
may, of its own motion or on the application of the Deputy Commissioner, take
such order into consideration.

(2) If such Court, after such consideration, is of opinion that such instrument
should have been admitted in evidence without the payment of duty and
penalty under Section 34, or without the payment of a higher duty and penalty
than those paid, it may record a declaration to that effect, and determine the
amount of duty with which such instrument is chargeable, and may require any
person in whose possession or power such instrument then is, to produce the
same, and may impound the same when produced.

(3) When any declaration has been recorded under sub-section (2) the Court
recording the same shall send a copy thereof to the Deputy Commissioner and
where the instrument to which it relates has been impounded or is otherwise
in the possession of such Court, shall also send him such instrument.

(4) The Deputy Commissioner may thereupon, notwithstanding anything

contained in the order admitting such instrument in evidence, or in any
certificate granted under Section 41 or in Section 42, prosecute any person for
any offence against the stamp law which the Deputy Commissioner considers
him to have committed in respect of such instrument.

Provided that:

ii. no such prosecution shall be instituted where the amount (including

duty and penalty) which, according to the determination of such Court,
was payable in respect of the instrument under Section 34, is paid to
the Deputy Commissioner unless he thinks that the offence was
committed with an intention of evading payment of the proper duty.

91
iii. except for the purpose of such prosecution, no declaration made under
this section shall affect the validity of any order admitting any
instrument in evidence or of any certificate granted under Section 41.

Section 67 – Books etc., to be open to inspection: A Deputy Commissioner or

an Assistant Commissioner or any officer not below the rank of a Sub-Registrar
authorized by the Deputy Commissioner or Chief Controlling Revenue Authority
in this behalf may for the purpose of this act require every public officer or any
person to produce or permit at all reasonable time, inspection of such
registers, books, records, papers, documents, information in electronic storage
and retrieval device or medium, applications, instrument or proceedings, the
inspection whereof may tend to secure any duty or to prove or lead to the
discovery of any fraud or omission in relation to any duty and take such notes
and extracts as he may deem necessary without fee or charge and may if
necessary seize them and impound them under Section 33.

Section 72 – Application of the Indian Stamp Act, 1899: (1) The Indian Stamp
Act, 1899 (Central Act II of 1899) as in force in the Madras Area, shall,
notwithstanding anything contained in any law, extend to the whole of the
State of Karnataka and shall remain in force in so far such Act relates to the
matter specified in entry 44 of List III of the Seventh Schedule to the
Constitution in respect of documents specified in entry 91 of List I of the said
Schedule.

(2) Save as provided in sub-section (1), the Indian Stamp act, 1899 (Central
act II of 1899) as in force in the Bombay Area, Coorg District and the Madras
Area, in so far as it relates to the matter specified in entry 44 of List III of the
Seventh Schedule to the Constitution, in respect of documents falling under
entry 63 of List II of the said Schedule, is hereby repealed.

Provided that such repeal shall not affect:

a. the previous operation of the said enactments or anything duly

done of suffered thereunder.

b. any right, privilege, obligation or liability acquired, accrued or

incurred under the said enactments.

c. any penalty, forfeiture or punishment incurred in respect of any

offence committed against the said enactments, or

d. any investigation, legal proceeding or remedy in respect of any

such right, privilege, obligation, liability, forfeiture or punishment
as aforesaid and any such investigation, legal proceeding or
remedy may be instituted, continued or enforced and any such
penalty, forfeiture or punishment may be imposed as if this Act
not been passed.

92
 SCHEDULE
STAMP-DUTY ON INSTRUMENTS

Description of Instrument Proper Stamp Duty

Art.4. Affidavit, including an affirmation or declaration in Twenty rupees

the case of persons by law allowed to affirm to declare
instead of swearing.

Exemptions:
Affidavit or declaration in writing when made:
a) as a condition of enlistment to the Armed Forces
of the Union.
b) For the immediate purpose of being filed or used
in any Court or before the officer of any Court or;
c) For the sole purpose of enabling any person to
receive any pension or charitable allowance.

Art.5. Agreement or its records or Memorandum of an

Agreement:
a) if relating to the sale of a bill of exchange One rupee for every ten
thousand or part thereof.
b) if relating to the purchase or sale of a One rupee for every
Government security rupees ten thousand or
part thereof of the value
of the security at the time
of its purchase or sale, as
the case may be, subject
to a maximum of rupees
one thousand

c) if relating to the purchase or sale of shares,

scrips, stocks, bonds, debentures, debenture
stocks or any other marketable security of a like
nature in or any incorporated company or other
body corporate
(i) when such agreement or memorandum or an
agreement is with or through a member or One rupee for every
between members of Stock Exchange rupees ten thousand or
recognized under the Security Contracts part thereof of the value
(Regulation) Act, 1996 (XLII of 1956) of the security at the time
of its purchase or sale as
the case may be

(ii) in any other case One rupee for every

rupees ten thousand or
part thereof of the value

93
 of the security at the time
of its purchase or sale, as
the case may be

d) if relating to a transaction of lease cum sale in The same duty as a

connection with the allotment of a building site, Conveyance (No.20) for a
with or without building thereon, effected by the market value equal to the
Bangalore Development Authority constituted security deposit and the
under the Bangalore Development Authority Act amount of average annual
1976 (Karnataka Act 12 of 1976), the City rent reserved under such
Improvement Trust Board, Mysore constituted agreement.
under the City of Mysore Improvement Act, 1903
(Mysore act 3 of 1903), the Karnataka Housing
Board constituted under the Karnataka Housing
Board Act 1962 (Karnataka Act 10 of 1963), the
Improvement Boards constituted under the
Karnataka Improvement Boards act
1976(Karnataka Act 11 of 1976), House Building
Co-operative Societies registered under the
Karnataka Co-operative Societies Act 1959
(Karnaaka Act 11 of 1959) or the allotment of
industrial sheds and plots by the Karnataka
Industrial Areas Development Board established
under the Karnataka Industrial Area Development
Act, 1966 (Karnataka Small Scale Industrial
Development Corporation, the Karnataka State
Industrial Investment and Development
Corporation and the Karnataka State Electronics
Development Corporation, registered as a
company under the Companies Act, 1956
(Central Act 1 of 1956), or the allotment of land
or site with or without building to the market
functionaries in the yard by the Agricultural
Produce Market Committees constituted under
the Karnataka Agricultural Produce Marketing
(Regulation) Act, 1966 (Karnataka Act 27 of
1966), Municipal Corporation constituted under
the Karnataka Municipal Corporations Act, 1976
(Karnataka Act 14 of 1977), Municipal Councils
or Town Panchayats constituted under the
Karnataka Municipalities Act, 1964 (Karnataka
Act 22 of 1964), Urban Development Authorities
constituted under the Karnataka Urban
Development Authorities Act, 1987 (Karnataka
Act 34 of 1987), Grama Panchayats, Taluk
Panchayats and Zilla Panchayats constituted
under the Karnataka Panchayat Raj Act, 1993

94
 (Karnataka Act 14 of 1993) and such other
authorities as may be specified by the
Government.

da) where any instrument of Lease cum sale effected The duty payable shall be
by the Bangalore Deve- lopment Authority constituted as a conveyance {No.20
under the Bangalore Development Authority Act (3)} for the market value
1976, (Karnataka Act 12 of 1976), the Karnataka equal to the security
Housing Board constituted under the Karnataka deposit and the amount of
Housing Board Act, 1962 (Karnataka Act 10 of average annual rent
1963) pertaining to premises of a Flat or Apartments. reserved under such
agreement.
e) If relating to sale of immovable property wherein
part performance of the contract
(i) possession of the property is delivered or is Same duty as Conveyance
agreed to be delivered without executing the (No.20) on the market
conveyance. value of the property

(ii) Possession of the property is not delivered. 0.25 rupee for every one
hundred rupees or part
thereof on the market
value equal to the amount
of consideration.

f) If relating to construction or development or sale One rupee for every

of an immovable property, including a multi unit hundred rupees or part
house or building or unit of apartment or flat or thereof on the market
portion of a multi-storied building by a person value of the property, or
having a stipulation that after construction or the estimated cost of
development, such property shall be held jointly construction or proposed
or severally by that person and the owner or construction or
lessee, as the case may be, of such property, or development or proposed
that it shall be sold jointly or severally by them or development of the
that a part of it shall be held jointly or severally by property, as the case may,
them and the remaining part thereof shall be sold (which is the subject
jointly or severally by them. matter of such transfer
under the agreement in
Explanation I: (1) the expression lessee shall mean a accordance with the
holder of a lease, for a period exceeding thirty years or provisions of Section 28
more or in perpetuity or does not purport to be for any of the Karnataka Stamp
definite term. Act, 1957) or on the
(2) the expression building shall mean a building having consideration for such
more than one apartment or flat or office transfer whichever is
accommodation or portion of a multi storied building. higher.
Provided that, if the
Explanation – II: For the purpose of clause (e), clause (f) proper stamp duty is paid
and clause (h) where subsequently conveyance or under (e), (ea) and (eb) of

95
mortgage as the case may be, is executed between the Article 41 on a power of
same parties in pursuance of such agreement or its attorney executed
records or memorandum, the stamp duty, if any, already between the same parties
paid and recovered or memorandum shall be adjusted in respect of the same
towards the total duty leviable on the conveyance or property, then the stamp
mortgage, as the case may be. duty under this article
shall be as per Article 5(i).

g) If relating to sale of moveable property Same duty in sub-clause

(e) of this Article

h) If relating to the mortgage Same duty as under

Article No.34(a) or (b) as
the case may be

i) If not otherwise provided for Two hundred rupees

Explanation: For the purpose of sub-clause (i) and sub-

clause (ii) of clause (e) and clause (h), where
subsequently conveyance or mortgage as the case may
be, is executed in pursuance of such agreement or its
records or memorandum, the stamp duty, if any, already
paid and recovered on the agreement or its record or
memorandum shall be adjusted towards the total duty
leviable on the conveyance or mortgage, as the case
may be.

Art.6: Agreement relating to deposit of title deeds, pawn

or pledge, that is to say any instrument evidencing an
agreement relating to:

(1) the deposit of title deeds or instruments constituting

or being evidence of the title to any property whatever
(other than a marketable security) where such deposit,
has been made by way of security for the repayment of
money advanced or to be advanced by way of loan or an
existing or future debt.

(a) if such loan or debt is repayable on demand for more

than three months from the date of instrument
evidencing the agreement.
If drawn If drawn If
singly in set of drawn
(Rs.) two for in set
each of three
part of for
the set each

96
 (Rs.) part of
the set
(Rs.)
(i) when the amount of the loan or debt does not
exceed Rs.500 1.25 1.00 .050
(ii) when it exceeds Rs.500 but does not exceed
Rs.1000 2.50 2.00 1.00
(iii) when it exceeds Rs.1000 but does not exceed
Rs.5000 12.50 6.25 5.00
(iv) when it exceeds Rs.5000 but does not exceed
Rs.10000 25.00 12.50 10.00
(v) when it exceeds Rs.10000 for every additional
Rs.5000 or part thereof in excess of Rs.10000 12.50 6.25 5.00
(subject to maximum of Rs.five lakhs)

(b) if such loan or debt is repayable not more than three Half the duty payable on a
months from the date of such instrument. loan or debt under item (i)
or (ii) or (iii) or (iv) or (v) of
sub-clause (a) for the
amount secured subject
to a maximum of Rs.five
lakhs.

Explanation: For the

purpose of Clause (1),
notwithstanding anything
contained in any
judgment, decree or order
of any Court order of any
authority, any letter, note
memorandum or writing
relating to the deposit of
title deeds whether
written or made either
before or at the time when
or after the deposit of title
deeds is effected, and
whether it is in respect of
the security for the first
loan or any additional loan
or loans taken
subsequently, such letter,
note, memorandum or
writing shall, in the
absence of any separate
agreement or
memorandum of

97
 agreement relating to
deposit of such title
deeds, be deemed to be
an instrument evidencing
an agreement relating to
the deposit of title deeds.
(2) the pawn or pledge of moveable property where such
pawn or pledge has been made by way of security for the
repayment of money advanced or to be advanced by way
of loan or an existing or future debt:

a) if such loan or debt is repayable not more than three Twenty five paise for every
months from the date of such instrument. hundred rupees or part
thereof
b) if such loan or debt is repayable on demand for more Fifty paise for every
than three months from the date of instrument hundred rupees or part
evidencing the agreement. thereof subject to a
maximum of rupees two
lakhs
Exemption – 1: Instruments of pawn or pledge or jewels Provided that where a
wherein such loan or debt is upto Rupees ten thousand fresh instrument of pawn
or pledge of movable
2. Instruments of pawn or pledge of goods, if unattested. property is executed for
securing repayment of
money already advanced
by way of loan between
the same parties and for
the same purpose and for
the same amount and the
duty in respect of earlier
instrument has been paid,
then the duty chargeable
on such fresh instrument
is chargeable as per
clause (i) of Article 5 of
this Schedule.

Art.11 – Award that is to say, any decision in writing by The same duty as a
an arbitrator or umpire, not being an award directing a conveyance (under Article
partition, on a reference made otherwise than by an 20[1]) on the amount or
order of the Court in the course of a suit market value of the
property (which is the
subject matter of award),
whichever is higher.
Art.20 – (1) For Conveyance: As defined by clause (d) of Six per cent of the value
Section 2, not being a transfer charged or exempted
under No.52 on the market value of the property which

98
is the subject matter of conveyance.

Provided that where a conveyance is backed by a valid Provided further that in

title insurance policy issued by any Insurance Company any case where a lease
recognized by Insurance Regulatory and Development cum sale agreement is
Authority, the duty shall be 7% of the market value of the executed and is stamped
property. with the ad valorem
stamp required for such
agreement under item (d)
of Article 5 and in
furtherance of such
agreement a conveyance
is subsequently executed,
the duty on such
conveyance shall not
exceed rupees ten or the
difference of the duty
payable on such
conveyance and the duty
already collected on the
security deposit under
item (d) of Article 5,
whichever is greater.
Provided also that
notwithstanding anything
contrary contained in this
Act, where a lease cum
sale agreement was
executed before the thirty
first day of March 2001 in
respect of a site allotted
by any House Building Co-
operative Society
registered under the
Karnataka Co-operative
Societies Act, 1959
(Karnataka Act 11 of
1959) and in furtherance
of such agreement a
conveyance is
subsequently executed,
the duty payable on such
conveyance shall be on
the market value of such
site as on the date of
execution of the lease
cum sale agreement.

99
(2) Where it relates to first instrument of conveyance [the same duty as a
executed by a promoter, a land owner, or a developer by conveyance under
whatever name called, pertaining to premises of ‘Flat’ as Article20(1)]
defined in clause (a) of section 2 of the Karnataka
Ownership Flats (Regulation of the Promotion of
Construction, Sale, Management and Transfer) Act,
1972 (Karnataka Act 16 of 1973) or ‘Apartment’ as
defined in clause (a) of section 3 of the Karnataka
Apartment Ownership Act, 1972 (Karnataka Act 17 of
1973) or transfer of share by or in favour of Co-operative
Society or Company pertaining to premises or Unit and
the market value of the property which is the subject
matter of conveyance.

Explanation:—
(a) “Premises” means and includes undivided interest in
the land, building and proportionate share in the common
areas:
(b) “Unit” includes flat, apartment, tenement, block or
any other unit by whatever name called, constructed or
under construction in accordance with the sanctioned
plan by the authority competent to sanction a building
plan under any law for the time being in force:
(c) “Promoter” means a promoter as defined in clause
(c) of section 2 of the Karnataka Ownership Flats
(Regulation of the Promotion of Construction, Sale,
Management and Transfer) Act, 1972 (Karnataka Act 16
of 1973).]

(3) where any instrument of conveyance is effected by The duty shall be payable
the Bangalore Development Authority constituted under at the rates specified
Bangalore Development Authority Act, 1976 (Karnataka under clause (2) of Article
Act 12 of 1976), the Karnataka Housing Board 20 on the amount or
constituted under the Karnataka Housing Board Act, value of consideration as
1962 (Karnataka Act 10 of 1963) pertaining to premises set forth in the
of Flat or Apartment. instrument.

Provided that in any case

where a Lease cum sale
agreement is executed
and is stamped with the
ad valorem duty required
for such agreement under
item (da) of Article 5 and
in furtherance of such

100
 agreement a conveyance
is subsequently executed,
the duty on such
conveyance shall not
exceed rupees fifty or the
differences of the duty
payable on such
conveyance and the duty
already collected on the
security deposit under
item (da) of Article 5,
whichever is greater.
(4) if relating to an order made by the High Court under
Section 394 of the Companies Act, 1956 in respect of:

(i) Amalgamation of companies including a subsidiary 5% on the market value of

amalgamating with parent company. the property of the
transferor company,
located within the State of
Karnataka and
transferred to the
transferee company; or

An amount equal to 0.7%

of the aggregate value of
shares issued or allotted
in exchange or otherwise
and in case of a
subsidiary company,
shares merged or
cancelled with parent
company and in addition,
any, paid for such
amalgamation whichever
is higher.

(ii) Reconstruction or Demerger of a company 5% on the market value of

the property of the
transferor company,
located within the State of
Karnataka and
transferred to the
resulting company; or

An amount equal to 0.7%

of the aggregate value of
shares issued or allotted

101
 to the resulting company
and in addition, the
amount of consideration if
any, paid for such
demerger or
reconstruction –
whichever is higher.
Exemption: Amalgamation of sick companies with
others, under the orders of Board of Industrial Finance
and Reconstruction (BIFR).

(5) Conveyance relating to industrial machinery whether Five per cent of the
treated as movable or immovable property market value

(6) If relating to assignment of receivables by the One rupee for every one
originator to the special purpose vehicle (SPV) or by thousand rupees or part
whatever name they are called, in the process of thereof subject to a
securitization under securitization and reconstruction of maximum of rupees one
Financial Assets and Enforcement of Security Interest lakh.
act, 2001
28. Gift-instrument of,- not being a settlement (No. 48)
or will or transfer (No.52)
a)Where the donee is not a family member of the doner. The same duty as a
Conveyance (Article No.
20) for a market value
equal to the market value
of the property which is
the subject matter of gift:

Provided that where an

instrument of gift contains
any provision for the
revocation of the gift, the
value of the property
which is the subject
matter of the gift, shall for
the purposes of duty be
determined as if no such
provision were contained
in the instrument.
[(b) Where the donee is a member of the family of the
donor Rupees One thousand
Explanation: Family in relation to the donor
for this purpose means [father, mother,]
husband, wife, son, daughter, [daughter-in-law,

102
brothers, sisters] and grand children]

30. 1[(1) Lease of immoveable property including an

under-lease or sub-lease and any agreement to let or
sub-let where by such lease, the rent is fixed, or fine or
premium or money advanced or security deposit (as the
case may be) is paid or delivered,-
(i) where the lease purports to be for a term not One rupee for every one
exceeding five years. hundred rupees or part
thereof on the total
amount of average
annual rent and fine or
premium or money
advanced or security
deposit, as the case may
be, payable or deliverable
under such lease.
(ii) where the lease purports to be for a term exceeding two rupees for every one
five years but not exceeding ten years. hundred rupees or part
thereof on the total
amount of average
annual rent and fine or
premium or money
advanced or security
deposit, as the case may
be, payable or deliverable
under such lease.
(iii) where the lease purports to be for a term exceeding four rupees for every one
ten years but not exceeding thirty years hundred rupees or part
thereof on the total
amount of average
annual rent and fine or
premium or money
advanced or security
deposit, as the case may
be, payable or deliverable
under such lease.
(iv) where the lease purports to be for a term exceeding the same duty as a
thirty years or in perpetuity or does not purport to be conveyance (Article 20
for any definite term (1)], for the amount or
value of such fine or
premium or advance, as
set forth in the lease, in
addition to duty which
would have been payable
on such lease if no fine or
premium or advance had

103
 been paid or delivered or
for an amount equal to
market value of the
property whichever is
higher:
Provided that in any case
when an agreement to
lease is stamped with the
ad valorem stamp
required for a lease and a
lease in pursuance of
such agreement is
subsequently executed,
the duty on such lease
shall not exceed rupees
fifty:
Provided further that the
duty in respect of an
instrument of lease
executed in favour of the
wife, husband, father,
mother, son, daughter,
brother or sister in
relation to the person
shall be rupees one
thousand.
Explanation.- The term
“money advanced” in this
Article means and
includes the security
deposit whether
refundable or adjustable
towards the rent.
[(2) lease of moveable property including an under lease
or sublease and any agreement to let or sub let,—

(a) where by such lease the rent is fixed and no premium

is paid or delivered,—

(i) where the lease purports to be for a term not One rupee for every
exceeding ten years hundred rupees or part
thereof on the ten years
average annual rent
reserved, subject to a
maximum of rupees two
lakhs.

104
(ii) where the lease purports to be for a term exceeding One rupee and fifty paise
ten years for every hundred rupees
or part thereof on the
average annual rent
reserved, subject to a
maximum of rupees two
lakhs.

(b) where the lease is granted for a fine or premium or One rupee and fifty paise
for money advanced and where no rent is reserved of. for every hundred or part
thereof on the amount
such fine or premium or
advance as setforth in
the lease, subject to a
maximum of rupees two
lakhs

(c) where the lease is granted for a fine or premium or One rupee and fifty paise
for money advanced in addition to rent reserved. for every hundred rupees
or part thereof on the
amount of such fine or
premium or advance as
setforth in the lease in
addition to the duty which
would have been payable
on such lease, if no fine or
premium or advance had
been paid or delivered,
subject to a maximum of
rupees two lakhs:

Provided that in respect

of lease of industrial
machinery the maximum
duty chargeable shall be
rupees ten thousand

Provided further that]2 in

any case when an
agreement to lease is
stamped with advalorem
stamp required for a
lease and a lease in
pursuance of such
agreement is

105
 subsequently executed,
the duty on such lease
shall not exceed rupees
fifteen
[32-A Licence of immovable or moveable property.- That
is to say licence granted by owner or authority for rent or
fee or by whatever name it is called, and money
advanced or security deposit
i)where the licence purports to be for a term not one rupee for every one
exceeding five years hundred rupees or part
thereof on the total
amount of average
annual rent or fee or by
whatever name it is
called, and money
advanced or security
deposit, payable or
deliverable under such
licence.

ii)where the licence purports to be for a term exceeding two rupees for every one
five years but not exceeding ten years. hundred rupees or part
thereof on the total
amount of average
annual rent or fee or by
whatever name it is
called, and money
advanced or security
deposit, payable or
deliverable under such
licence.

iii) where the licence purports to be for a term four rupees for every one
exceeding ten years but not exceeding thirty years. hundred rupees or part
thereof on the total
amount of average
annual rent or fee or by
whatever name it is
called, and money
advanced or security
deposit, payable or
deliverable under such
licence
[33 Memorandum of Association of a company,—
(a) if accompanied by Articles of Association under
section 26 of the Companies Act, 1956 (Central Act 1 of One thousand rupees
1956)

106
(b) if not so accompanied according to the share capital
of the company. The same duty as under
Article (No. 10)
Exemption:—
Memorandum of any Association not formed for profit
and registered under section 25 of the Companies Act,
1956, (Central Act 1 of 1956)]
34. Mortgage deed,- not being an agreement relating to
1[Deposit of title deeds, [pawn or pledge]2 (No. 6)],
Bottomry Bond (No. 13), Mortgage of a Crop (No. 35),
Respondentia Bond (No. 46), or Security Bond (No. 47)

(a) When possession of the property or any part of the The same duty as
property comprised in such deed is given by the conveyance (No. 20) for a
mortgagor or agreed to be given. market - value equal to
the amount secured by
such deed.

Fifty paise for every [and

(b) When possession is not given or agreed to be given hundred rupees or part
as aforesaid and not being a hypothecation] thereof for the amount
secured by such deed

EXPLANATION—A mortgagor who gives to the mortgagee

a power of attorney to collect rents or a lease of the
property mortgaged or part thereof is deemed to give
possession thereof within the meaning of this article.

(c) When a collateral or auxiliary or additional or

substituted security, or by way of further assurance for
the above mentioned purpose, where the principal or
primary security is duly stamped. Ten rupees

(i) for every sum secured not exceeding Rs. 1,000. Ten rupees plus one
rupee for every rupees
one thousand or part
(ii) for every Rs. 1,000 or part thereof, secured in excess
thereof in excess of
of Rs.1000.
rupees one thousand

Ten rupees for every ten

thousand rupees or part

107
 thereof advanced, subject
(d) For hypothecation of moveable property to a maximum of rupees
ten thousand.

EXEMPTION
(1) Instruments executed by persons taking advances
under the Karnataka Land Improvement Loans Act,
1963 (Karnataka Act 16 of 1963), the Karnataka
Agriculturists Loans Act, 1963 (Act 17 of 1963) or by
their sureties as security for the repayment of such
advances,
(2) Letter of hypothecation accompanying a bill of
exchange

40 Partnership:—

A. Instrument of:—
(a) Where the capital of the partnership does not exceed One hundred rupees
rupees 5000

(b) In any other case One thousand rupees

B. Reconstitution:— The same duty as

(a) Where immovable property contributed as share by a conveyance (No. 20) on
partner at the time of outgoing in whatever manner by the market value of the
such partner or partners on reconstitution of such immovable property
partnership firm. remaining with the firm

(b) In any other case Five hundred rupees

C. Dissolution of:—
(a) Where the property which belonged to one partner or The same duty as
partners when the partnership commenced is distributed conveyance (No. 20) for a
alloted or given to another partner or partners, market value equal to the
market value of the
property distributed or or
alloted or given to partner
or partners under the
instrument of dissolution,
in addition to the duty
which would have been

108
 chargeable on such
dissolution if such
property had not been
distributed or alloted or
given.

(b) In any other case Five hundred rupees

Art. 41. Power of Attorney - (as defined

by Section 2(1)(p) not being a proxy-

(a) when executed for the sole purpose 1[One hundred rupees]
of procuring the registration of one or
more documents in relation to a single
transaction or for admitting execution of
one or more such documents;

(b) when authorising one person or 1[One hundred rupees]

more to act in a single transaction other
than the case mentioned in clause (a);

(c) when authorising not more than five 2[One hundred rupees]
persons to act jointly and severally in
more than one transaction or generally;

(d) when authorising more than five 1[Two hundred rupees]

but not more than ten persons to act
jointly and severally in more than one
transaction or generally;

2 (e) when given for consideration and The same duty as a conveyance (No.
authorising the attorney to sell any 20) for a market value equal to the
immovable property; amount of the consideration or on
market value of the property (which is
the subject matter of such power of
attorney) whichever is higher..

(ea) When given for construction / One rupee for every one hundred
development or sale of an immovable rupees or part thereof on the market
property, including a multi-unit house or value of the property or the estimated
building or unit of apartment or flat or cost of construction or proposed
portion of multi storied building to a construction or development or
person having a stipulation that after proposed development of the

109
construction or development, such property, as the case may be (which
property shall be held jointly or is the subject matter of such transfer
severally by person and the owner or under the power of attorney in
lessee, as the case may be, of such accordance with the provisions of
property, or that it shall be sold jointly section 28 of the Karnataka Stamp
or severally by them or that a ;part of it Act, 1957) or on the consideration for
shall be held jointly or severally by them such transfer whichever is higher.
and the remaining part there of shall be
sold jointly or severally by them.

Explanation 1 Provided that, when proper stamp

duty is paid under “clause (e), or
(1) The expression “Lease” shall mean clause (f) of the article 5, as the case
a holder of a lease, for a period may be, on such agreement or
exceeding thirty years or more or in records thereof or memorandum of
perpetuity or does not purport to be for an agreement executed between the
any definite term. same parties and in respect of the
same property, the duty chargeable
(2) The expression “building” shall
under these clauses shall be as per
mean a building having more than one
article 41(f)”.
apartment or flat or office
accommodation or portion of a
multistoried building or both.

1 (eb) When given to person other than 2The same duty as a conveyance
the father, mother, wife or husband, under Article 20(1) on the market
sons /daughters, brothers, sisters in value of the property which is the
relation to the executant authorising subject matter of power of attorney.
such person to sell immovable property
situated in Karnataka State.

Provided that the duty paid on such

instrument is adjustable towards the
duty payable on the instrument of sale
or transfer executed subsequently in
favour of either the attorney holder or
any other person.

(f) in any other case. 3[Two hundred rupees.]

N.B. - The term "Registration" includes

every operation incidental to
registration under the Registration Act,
1908 (Central Act 16 of 1908).

Explanation - For the purposes of this

Article more persons than one when

110
belonging to the same firm, shall be
deemed to be one person.

Art. 44. Reconveyance of mortgaged property-

a) if the consideration for which the property The same duty as a

was mortgaged does not exceed Rs.1000; Conveyance (No. 20) for a
market value equal to the
amount of such consideration
as set forth in the re-
conveyance.

1[(b) in any other case. One hundred rupees.

2[Art. 45. Release, that is to say, any

instrument (not being such a release as is
provided for by Section 24), where by a person
renounces a claim upon another person or
against any specified property:]

4[(a) where the release is not between the 5 [The same duty as a
family members. Conveyance [(Article No. 20(1)]
on the market value of the
property or on the amount or
value of claim or part of claim
renounced, as the case may
be( which is the subject matter
of release) or consideration for
such release, whichever is
higher.]
2[(b) where the release is between the family 2[Rupees one thousand.]
members

Explanation : Family in relation to a person for

the purpose of clause (b) means husband,
wife, son, daughter, father, mother, brother,
6[“wife/children of predeceased brother”],
sister,7[“husband/children of predeceased
sister”], wife of a predeceased son and
children of a predeceased son or predeceased
daughter.]

3[(c) Release of mortgage rights or lien Same duty as bond (No. 12)
subject to a maximum of
rupees one hundred).

111
 Art 48. Settlement
1[A. Instrument of (including a deed of dower)

(i) where the disposition is not for the purpose The same duty as a
of distributing the property of the settlor Conveyance (Article No. 20)
among his family. for a market value equal to the
market value of the property,
which is subject matter of
settlement.

Provided that, where an agreement to settle is

stamped with the stamp duty required for an
instrument of settlement, and an instrument of
settlement in pursuance of such agreement is
subsequently executed, the duty on such
instrument shall not exceed rupees fifty.

2[(ii) where the disposition is for the purpose 2[Rupees one thousand]
of distributing the property of the settler
among the members of his family

Explanation: For the purpose of this sub-clause 3[“father,

family in relation to settler means mother,”]
husband, wife, son, daughter, daughter-in-law
and grand children.

Exemption
Deed of dower executed on the occasion of a marriage between
Muhamadans.
See also Trust (No. 54.)

1[B] Revocation of The same duty as a Conveyance (No

.20) for a sum equal to the amount or
value of the property concerned, in the
instrument of revocation, but not
exceeding two hundred rupees.]

Art. 54 . Trust.

A. Declaration-of, Rupees Five hundred

(i)Concerning any money or amount conveyed
by the author to the trust as the corpus.

112
(ii) Concerning any immoveable property Rupees Five hundred
owned by the author and conveyed to the trust
of which, the Author is the sole trustee.

(iii) Concerning any immoveable property The same duty as conveyance Article
owned by the author and conveyed to the trust 20(1) for the market value of the
of which, the Author is not a trustee or one of property conveyed.]
the trustees.

B. Revocation of-, or concerning any property The same duty as a Bond (No. 12) for a
when made by any instrument other than a sum equal to the amount or value of the
will. property concerned, as set forth in the
instrument, but not exceeding 2[Two
hundred rupees.]

NOTE: There are proposed changes made in the recent Karnataka State
Budget for the year 2010-11 in relation to Articles 5(e)(ii), 5(J), 6(1), 14(a),
20(2), 20(2)(c), 20(4)(i), 20(4)(ii), 20(7), 30(1), 30(1)(i), 30(1)(ii), 30(1)(iii),
30(1)(iv), 32-A, 32-A(i), 32-A(ii), 32-A(iii), 37, 41(e) and 41(ea) of the Karnataka
Stamp Act, 1957.

LIST OF DOCUMENTS OF TITLE OF DIFFERENT KINDS OF PROPERTIES

TO BE OBTAINED FROM THE PRESENT OWNERS AND VERIFIED
BEFORE THEIR PURCHASE/ ACQUISITION BY LEASE, MORTGAGE
ETC

I. DOCUMENTS OF TITLE WITH RESPECT TO AGRICULTURAL

LANDS:

A) PRIMARY DOCUMENTS OF TITLE:-

1. R.T.C (POPULARLY KNOWN AS PAHANI) issued by the Village
Accountant.
This document contains details of the total extent of land in a survey number
or a sub-survey number, the extent of kharab land therein, the names of the
present and previous owners, their respective holdings, names of the tenants,

113
 the kind of soil, kind of crop, any mortgages, charges made on the properties
contained therein, the status of land (whether Inam land or not), the
conversion order number, date in case any property converted therein from
agricultural to non-agricultural use, the references to mutation and
inheritance certificates where there is any change in ownership etc.

2. Mutation Extract issued by the Village Accountant or Tahsildar.

This document contains the extract from the mutation register or inheritance
certificate with details of previous owner, the present owner, the mode of
acquisition of the property, the total extent of the property and the order
stating that the Khatha of the property may be transferred to the name of the
present owner.

3. Parent Deeds and/or Grant Orders for Darkshath lands / Re- grant
Orders in the case of Inam Lands and Form No.10 occupancy certificate in
the case of grants made under section 48A of the Karnataka Land Reforms
Act, 1961.

4. Record of Rights and Index of lands extract and pahani contains

details like extent of the lands, names of owners etc., This document is no
longer being issued by the Revenue authorities.

5. Family Tree certified by the Village Accountant / Revenue Inspector. This

document clearly indicates the Tahsildar Genealogical tree containing in the
form of a flow chart, the names and age of the members of the family of the
present and past owners of the land in question and also indicating whether
the persons mentioned therein are living or dead.

114
B) SECONDARY DOCUMENTS OF TITLE:-

1. Tax paid Receipts issued by the Village Accountant.

This document reflects the total tax paid by a person on his property and the
period for which the tax has been paid.

2. Form - 7 Endorsement issued by the Tahsildar

This endorsement issued by the Tahsildar is contains a statement that there

are no tenancy claims in respect of the property in question pending before
the Land Tribunal constituted for this purpose.

3. 79AB Endorsement issued by the Tahsildar

This endorsement issued by the Tahsildar is contains a statement that there

are no proceeding under section under section 79A or B of the Karnataka
Land Reforms Act 1961 have been initiated in respect of the property in
question

115
4. Karda Copy:
This documents issued by the office of the Assistant Director of Land Records
exercising relevant jurisdiction of the land and it indicates the name of the
original owner of the said property.

5. RR Balabagadha Nakalu:
This document issued by the office of the Assistant Director of Land Records
exercising relevant jurisdiction of the land indicates the name of the present
owner alongwith the extent of the said property. However this document is
issued only if the Survey Number has been bifurcated into sub-numbers.

6. Village Map issued by the Office of the Assistant Director of Land

Records. This Document clearly indicates the map of the Village in which
the property in question is situated.

7. Tippani / Atlas copy issued by the Office of the Assistant Director

of Land Records
Tippani is a sketch of the property with the bifurcation made on the Survey
Number in any land in question with measurements. Atlas is also a sketch of
the property in question with measurements alongwith details of owners.
Thippani is issued when the Survey Number is bifurcated and Atlas when it is
not bifurcated.
6. Akarband Extract issued by Office of the Assistant Director of
Land Records indicates the total extent and classification of the property
in question.
7. Podi Prathi Extract issued by the Office of the Assistant Director
of Land Records indicates the bifurcation made on a Survey Number into
sub-survey numbers.

116
8. Hudbust Register Extract issued by the Office of the Assistant
Director of Land Records is a sketch clearly showing the boundaries
fixed on the land marked by boundary stones.
9. Karab Uttaru Extract issued by the Office of the Assistant Director
of Land Records is a document which indicates the extent of kharab land in
the property in question.
10. Endorsement from the Land Acquisition Office of the BDA /KIADB
/ K.H.B etc., confirming that there are no acquisition proceedings in respect
of the property in question.
11. Encumbrance Certificate in Form No.15 / 16 for a period of atleast 30
years from the Office of the Sub-Registrar exercising relevant jurisdiction
over the property in question.

(C) ADDITIONAL DOCUMENTS IN CASE THE PROPERTY IN

QUESTION HAS BEEN CONVERTED FROM AGRICULTURAL TO
NON-AGRICULTURAL USES AND PURPOSES:-

1. Conversion Order issued by the Deputy Commissioner or As-

sistant Commissioner as the case may be under section 95(2) of the
Karnataka Land Revenue Act 1964 exercising relevant jurisdiction over the
property in question. The order also prescribes certain conditions and
clearly mentions whether the land has been converted for residential,
commercial, industrial, public or semi-public uses and purposes.

2. Receipt evidencing conversion fine paid as levied under Section 95(7)

of the Karnataka Land Revenue Act 1964 in the form of a challan to the
State Government Treasury at the rates prescribed for various uses and
purposes in the Table under Rule 107 of the Karnataka Land Revenue Rules,

117
 1966.

3. Conversion certificate issued by the Tahsildar confirms the

Conversion order and the conditions and stipulations contained therein.

4. Form No.1, 11 and Form No.12 issued by the Panchayat /

Tahsildar.

These forms are issued by the Panchayat after the conversion of the property
has been done and after the development charges have been paid to the
Panchayat.

5. Receipt for development charges paid issued by the Panchayat

Secretary.

6. Non Agricultural register extract (Form No.32) issued by the

Revenue Department contains an extract from the Register mentioned above
in which the entry and details of lands converted are entered.

II. DOCUMENTS OF TITLE WITH RESPECT TO PROPERTIES

LOCATED WITHIN THE JURISDICTION OF THE BRUHAT
BANGALORE MAHANAGARA PALIKE

a) Primary Documents of Title:

i) Parent Deed by means of which the present owner/owners acquired title to

the property.

118
ii) Building Sanction Plan issued by the Chief Executive Engineer, Bangalore
Mahanagara Palike in case a building constructed on the property.

b) Secondary Documents of Title:

i) Khatha Certificate issued by the Bruhat Bangalore Mahanagara Palike in

the name of the present owner/owners.
ii) Khatha Extract issued by the Bruhat Bangalore Mahanagara Palike
Corporation in the name of the present owner/s
iii) Latest tax paid receipt issued by the Bruahat Bangalore Mahanagara Palike
evidencing payment of taxes in respect of the property.
iv) P.T.Sheet, Chalta and City Survey Sketch of the property issued by the
Assistant Director of Land Records
v) Encumbrance Certificate (preferably in Form 15) issued by the Sub-
Registrar exercising relevant jurisdiction over the property for a period
of not less than 30 years.
vi) Copy of the occupancy certificate issued by the Bruhat Bangalore
Mahanagara Palike certifying that the building constructed on the
Schedule Property is in accordance with the Sanctioned Plan.
vii) Copy of the receipt evidencing payment of compounding fees to the
Bruhat Bangalore Mahanagara Palike for regularising the deviation, if
any, made from the Building Sanction Plan.
viii) Copy of the Clearance issued by the Director, Fire Services Department
by means of letter addressed by him to the Bruhat Bangalore Mahanagara
Palike stating that he has no objection to the Bruhat Bangalore
Mahanagara Palike issuing an occupancy certificate in respect of building
constructed on the property.
ix) Copy of the clearance to operate lifts in the building issued by the Chief
Executive Engineer, Bruhat Bangalore Mahanagara Palike.

119
 x) Copy of the clearance from the Airport Authority when height
restrictions are applicable.
xi) Copy of the clearance from the Pollution Control Board.

The documents mentioned in (vi), (vii), (viii), (ix) and (x) usually arise in the case of
multistoried buildings.

III DOCUMENTS OF TITLE WITH RESPECT TO PROPERTIES

ALLOTTED AND/OR SOLD BY THE BANGALORE
DEVELOPMENT AUTHORITY TO THE PRESENT
OWNER/OWNERS.
a) Primary Documents of Title:

i) Allotment letter issued by the Bangalore Development Authority in favour

of the present owner in respect of the property.

iii) Possession letter issued by the Bangalore Development Authority in favour of

the present owner in respect of the property recording handing over of
possession of the property to the present owner.

iv) Building Sanction Plan issued by the Bangalore Development

Authority where a building has been constructed on the property.

v) Absolute Sale Deed executed and registered in favour of the present owner
by theBangalore Development Authority in respect of the property after the
expiry of ten years from the date of allotment.

120
b) Secondary Documents of Title:

i) Khatha Certificate issued by the Bangalore Development Authority in the

name of the present owner/owners.

ii) Latest tax paid receipt issued by the Bangalore Development Authority
evidencing payment of taxes in respect of the property upto date.

iii) Encumbrance Certificate (preferably in Form 15) issued by the Sub-

Registrar exercising relevant jurisdiction from the date of allotment upto
date.

IV. DOCUMENTS OF TITLES WITH RESPECT TO PROPERTIES

ALLOTTED AND ACQUIRED FROM THE KARNATAKA
HOUSING BOARD:

a) Primary Documents to title:

i) Allotment letter issued by the Karnataka Housing Board in favour of the

present owner/owners in respect of the property.

ii) Possession letter issued by the Karnataka Housing Board in favour of the
present owner/owners in respect of the property recording handing over of
possession of the property to the present owner.

iii) Building Sanction Plan issued by the Karnataka Housing Board where a
building has been constructed on the property.

121
iv) Absolute Sale Deed executed and registered in favour of the present
owner/owners by the Karnataka Housing Board in respect of the property.

b) Secondary Documents of Title:

i) Khatha Certificate issued by the Karnataka Housing Board in the name of the
present owner/owners.

ii) Latest tax paid receipt issued by the Karnataka Housing Board evidencing
payment of taxes in respect of the property upto date.

iii) Encumbrance Certificate (preferably in Form 15) issued by the Sub-

Registrar exercising relevant jurisdiction from the date of allotment upto
date.

122