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asked Aug 31, 2017 in Investment in Plots by manoharp (34 points) | 2,316 views

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After going through the ordeal myself I think I am most qualified to answer this.

1. While traveling through IVC road or in general towards Nandi or for that matter whole of the devanahalli area you will see boards with "plots a@600 rs etc. And most of them belong to some "BSNL society" "telecom society", "SBI society", "railway society" etc. Prima face very attractive prices and total amount to be paid in 2-3installments.

2. For your information, they have nothing to do with any telcom, SBI, BSNL etc. Most of them give such names to sound credible. The one I had purchased into had two retired SBI person that's all. I doubt other have any at all.

3. So once you pay the first installment, no registration will happen. YOu will get into an MOU with the society. That's all. Why? Because the societies do not have any land per se. They all are in process of procuring. They may take up to 10 years to procure 50-100 acre land from the local farmers.

4. But wait for the catch, as per law in Karnataka these so called societies cannot buy agriculture land on their own. So will get into an MOU with a builder, whose names you would have never heard of. This builder/developer will procure land from the farmer.
 
5. Looks complicated, too many moving parts. There is more. Suppose they are successful in procuring the land, they cannot simply divide it (i.e do plotting) and register your portion on your name. Why? YOu cannot just like that do plotting, the land needs to be converted and approved by BIAPA.

6. For conversion from agriculture to residential purpose is always a very tricky process and lot of time and money is required for the same.

7. Once converted you need to ask for BIAPA approval. For BIAPA to approve the layout they need to see proper plan adhering to their guidelines.
something like you need to leave 40% space as an open area. i.e. 40% of land cannot be used. Then they have make roads, STPs etc. How viable is it for the society to be commercially viable after paying huge money for conversion and leaving half of land un-utilized?


Nutshell, it is been 4 years I am still waiting for the land procurement to get complete, they have only procured 10acres out 60acres they had planned for. Even if it does not matter at least, in my case the society people are genuine but yet they are struggling. They are many such societies which could be simply fake or running Ponzi schemes.
answered Sep 11, 2017 by manoharp (34 points)
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