BAGALKOT TOWN DEVELOPMENT AUTHORITY (ALLOTMENT OF COMMERCIAL SITES, COMMERCIAL SHOPS AND SITES TO SERVICES SECTOR) RULES, 2003

 

PREAMBLE

Whereas, the draft of the Bagalkot Town Development Authority (Allotment of Industrial Sites) Rules, 2004 was published as required by Section 69 of the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976), in Notification No. RD 116 REH 2003, dated 4-2-2004 in Part IV-A of the Karnataka Gazette, Extraordinary, dated 26-2-2004, inviting objections and suggestions from all persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after expiry of thirty days from the date of its publication in the Official Gazette.

And whereas, the said Gazette was made available to the public on 26-2-2004.

And whereas, no objections and suggestions received within the period specified above.

Now, therefore, in exercise of the powers conferred by Section 69 of the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976), the Government of Karnataka hereby makes the following rules, namely.

Rule - 1. Title and commencement.

(1)     These rules may be called the Bagalkot Town Development Authority (Allotment of Commercial Sites, Commercial Shops and Sites to Services Sector) Rules, 2003.

(2)     They shall come into force from the date of their publication in the Official Gazette.

Rule - 2. Definitions.

In these rules unless the context otherwise requires.

(a)      "Appointed day" means the First day of January, 2002;

(b)      "Allotted" means the Project affected Business Person to whom the Commercial Site and or a Shop is allotted, kind also included a Project Affected Services Person to whom a Site is allotted under these rules;

(c)      "Allotment" means allotment on rental basis or sale on lease-cum-sale basis, under these rules;

(d)      "City limits of Bagalkot" means the area of Bagalkot City which falls within 525 metres from Mean Sea Level (MSL);

(e)      "Commercial Site" means any site formed in any of the layouts formed in the New Township of Bagalkot and earmarked for locating a Cinema Theatre, a Hotel or Restaurant, a Shopping Centre, a Shop, a Market area, and includes sites for locating any business or commercial enterprises or undertakings, or sites to Services Sector, but does not include any site earmarked for the location of any factory or any industry or any site for dwelling purpose;

(f)       "Commercial Shop" means building constructed by the Authority in various sectors/layouts formed in the New Township of Bagalkot, which have been earmarked for locating a Hotel or a Restaurant, a Shopping center, a Shop, a Market area, a Medical Shop and includes shops for locating any business or commercial enterprises or undertakings, but does not include any premises or building earmarked for the location of any factory or any industry or any site for dwelling purposes;

[1][(g) "New Township of Bagalkot" means the area of New Township of Bagalkot which falls within the limit of Bagalkot Town Development Authority;]

(h)   "Project affected Services Person" means a person who used to provide any one or more of the services to the public, for a stipulated amount, within the City limits of Bagalkot, whether acquired or notified for acquisition or not, on the appointed day, and whose said activity is going to be affected by the submergence of Bagalkot City and includes person who is compelled to shift his place of work because of submergence and rehabilitation of Bagalkot City, but does not include any person who owns or runs a factory or any industry or any dwelling house and the person whom the service site is allotted already anywhere in the New Township of Bagalkot;

(i)    "Project affected Business Person" means a person, who was actually carrying on or running a Cinema Theatre, a Hotel or Restaurant, a Shopping Centre, a Shop, a Commercial activity of any description, within the City limits of Bagalkot, whether acquired or notified for acquisition or not, and includes person who is carrying on business or commercial enterprises or undertakings on the appointed day within the said limits of Bagalkot City, and who are compelled to shift their business activity because of submergence and rehabilitation of Bagalkot City, but does not include any person who owns or runs a factory, or any industry or any dwelling house and the person to whom the commercial site is allotted already, any where in the New Township of Bagalkot;

(j)    "Services Sector"' means and includes those sectors where service is provided to the public at large and catered to their personal needs, by charging a specified amount for the services rendered by them.

Rule - 3. Eligibility for Commercial Sites, Shops and Sites to Services Sector.

(1)     A Project affected Services Person or a Project affected Business Person carrying on a Business or a Service activity, as the case may be on the Appointed Day within the City limits of Bagalkot and who intends to carry on a Business or a Service Activity in the New Township of Bagalkot, is eligible to apply for a single commercial site or a single commercial shop or a single site earmarked for Services Sectors only, unless such person has been allotted, already, a commercial site or a shop or a Service site in the City limits of Bagalkot

Provided that such person can apply for more than one site or shop if he was running more than one business activity or carrying on more than one service activity on the appointed day and intends to run more than one such business activity or carry on more than one such Service activity in the New Township of Bagalkot.

(2)     A Project affected Business Person or a Project affected Services Person, is eligible to seek allotment of a site or a shop of any of the specified sizes, required for his business or Service, on lease-cum-sale or on Lease basis. Such person shall apply for allotment in accordance with Rule 6, indicating the nature and the place of business or service, he was carrying on in the city limits of Bagalkot, and further should produce requisite documents to substantiate the fact that he was carrying on the said business or service at the said place, on the appointed day.

(3)     The applicant shall not be eligible for allotment of site exceeding double the size of the site held by him in the city limits of Bagalkot.

(4)     The allotment of sites would be one unit per Project affected Services Person and not according to the ownership, individual, joint or partnership of the site in the area affected by the submergence of Bagalkot City.

(5)     The allotment under these rules shall be one time only irrespective of the acquisition of the allotted site in future.

(6)     The allotments of the sites and the shops would be on first come first served basis or by draw of lots, subject to availability.

(7)     A Project affected Business Person or a Project affected Services Person, as the case may be, is entitled to one site or one shop only:

Provided that in appropriate cases where eligibility is proved, the authority is empowered to allot more than one site or shop, in accordance with this rule.

(8)     The owner of a building or a site in the Old City, on which a business or a service activity/as the case may be, was being carried on and which had been let out, is also eligible to apply for a Commercial or a Service Site or a shop, subject to the condition that he requires the said site or shop for business or service purposes only, as the case may be, and he intends a start a business or service activity thereon. Such person shall indicate the nature of business or service, as the case may be, that he intends to start, and shall apply along with documents showing that he had let out a premises owned by him for a business or service activity, but he is entitled to one site or shop only comprised in Category 'A' or 'B' of sites or Categories T to VIII' of shops.

Rule - 4. Allotment of Commercial and Service Sites.

[2][The Commercial and Service Sites and the rates per square meter shall be as follows, namely.

Rule - 5. Categories of Commercial Shops and Service Shops.

(1)     The categories of commercial shops and service shops, their carpet area for allotment under these rules shall be as follows, namely.

(2)     The authority may notify from time to time the value of the Commercial Shops based on the cost of the shop.

(3)     The authority shall allot Commercial Shops on lease-cum-sale basis only.

Rule - 6. Procedure for Allotment of Commercial and Services Sites and Shops.

(1)     Whenever the Authority has formed layouts and constructed shops thereon in the New Township of Bagalkot and has earmarked the said sites and shops for commercial or service purposes, the authority shall notify the sites and shops available for allotment with due publicity and invite Project affected Business Person or Project affected Services Persons, or both, to apply.

(2)     The notification issued under sub-rule (1) shall contain the following details, namely.

(a)      the day on which the filing of applications is to be commenced and the last day of filing such applications;

(b)      the day on which the allotment will take place;

(c)      the manner in which the result of the allotment will be intimated to the allottee;

(d)      the amount of registration fee to be paid along with the application;

(e)      the time and date for payment of consideration amount, in case of sale;

(f)       the documents to be filed showing the eligibility of the applicant to apply for site or shop.

(3)     The Project affected Business Person or Services Person is required to apply in Form I, for allotment of a commercial or service site or shop, as the case may be, indicating the category that he intends to apply.

(4)     The application for allotment shall be filed along with documents showing the eligibility of the applicant for allotment, and may be filed in the office of the authority or be sent by Registered Post Acknowledgement Due, so as to reach the office of the authority before time on the last date fixed for receipt of applications. Applications reached beyond the prescribed time and date, or which are defective or incorrect or which are filed without the requisite documents, are liable to be rejected by the authority, and the decision of the authority, in this regard, is final.

(5)     Each application for allotment of site shall be filed along with the registration fee of Rs. 500/- in case of site comprised in Categories 'A' and 'B', Rs. 750/- in case of site in Category 'C', Rs. 1,000/- in case of site in Category 'D', Rs. 1,500/- in case of site in Category 'E', Rs. 2,000/- in case of site in Category 'F' and Rs. 5,000/- in case of a site bigger than the site in Category 'F'.

(6)     Each application for allotment of shop shall be filed along with the registration fee of Rs. 2,000/- in case of shops comprised in Category 'I", Rs. 3,000/- in case of shops in Category 'II', Rs. 4,000/- in case of shops in Categories 'III to VIII', Rs. 5,000/- in case of shops in Category 'IX', Rs. 6,000/- in case of shops in Categories 'X and XI' and Rs. 20,000/- in case of a shops or Hotels in Category 'XII'.

(7)     Application by a Project affected Business Person or a Project affected Services Person, as the case may be, applying for more than one site or shop, shall accompany necessary documents showing that he was carrying on more than one business or service activity, on the appointed day, but he has to pay a separate registration fee for each site or shop.

(8)     After the draw of lots on the prescribed day, the authority shall inform in Form II, the concerned allottee about the allotment in his favour and further inform him the date before which he has to pay the consideration amount and execute the agreement.

Rule - 7. Conditions for allotment of commercial and service sites.

The allotment of the Commercial or service sites are subject to the following conditions, namely.

(a)      The allottee shall, within a period of 30 days from the date of receipt of allotment letter, pay to the authority the entire site value, after deducting the registration fee. If the entire amount is not paid within the said period of 30 days, the registration fee shall be forfeited and the allotment shall be cancelled without any further intimation in this regard.

(b)      After the payment stipulated under clause (a) above is made, the authority shall call upon the allottee to execute a lease-cum-sale agreement in the prescribed form, the duration of which shall be for a period of 10 years, after the execution of such agreement by the allottee. If the agreement is not executed within 45 days from the date on which the authority has called upon the allottee to execute the agreement, the allotment shall stand cancelled and the amount paid by the allottee, after deducting such expenses as has been incurred by the authority, shall be refunded to him.

(c)      Until the site or the shop is conveyed to the allottee, the amount paid by the allottee for the purchase of the site or shop, shall be held by the Authority as a security deposit for a period not exceeding 45 days for the due performance of the terms and conditions of the allotment and the execution of lease or lease-cum-sale agreement entered into between the authority and the allottee.

(d)      With effect from the date of taking possession of the site or shop as the case may be, the allottee, or his heirs, or his successors shall be liable to pay all taxes, fees and cess etc., legally payable in respect of the site or shop.

(e)      If the particulars furnished by the applicant in the prescribed form for the allotment of site or shop, are found to be incorrect or false, the value of the site or shop deposited by the allottee shall be forfeited and the allotment shall be cancelled by the authority.

(f)       The construction of shops over the allotted sites shall be made by the allottee himself subject to the condition that the plan is to be approved by the authority and the Chamber of Commerce of Bagalkot.

(g)      The allottee shall complete the construction of the shop within a period of 6 months from the date of taking possession of the site, failing which the allotment in his favour is liable to cancelled without any amount being refunded to him.

(h)     The expenses on account of stamp duty, registration fees and any other incidental charges in respect of the conveyance shall be borne by the allottee.

Rule - 8. Conditions for allotment of Commercial Shops.

The allotment of Commercial Shops are subject to the following conditions, namely.

(a)      The allottee shall, within a period of 30 days from the date of receipt of allotment letter, pay to the authority the entire shop value, in the case of sale of shop on lease-cum-sale basis, after deducting the registration fee. If the entire amount is not paid within the said period of 30 days, the registration fee shall be forfeited and the allotment shall be cancelled without any further intimations in this regard.

(b)      After the payment stipulated under clause (a) above is made, the Authority shall call upon the allottee to execute a lease-cum-sale agreement in the prescribed form, the duration of which shall be for a period of 10 years, after the execution of such agreement by the allottee. If the agreement is not executed within 45 days from the date on which the authority has called upon the allottee to execute the agreement, the allotment shall stand cancelled and the amount paid by the allottee, after deducting such expenditure as has been incurred by the authority, shall be refunded to him.

(c)      Until the shop is conveyed to the allottee, the amount paid by the allottee for the purchase of shop, shall be held by the authority as a security deposit for a period not exceeding 45 days for the due performance of the terms and conditions of the allotment and the execution of lease and lease-cum-sale agreement entered into between the authority and the allottee.

(d)      With effect from the date of taking possession of the shop, the allottee or his heirs, or his successors shall be liable to pay all taxes, fees and cess etc., legally payable in respect of the shop.

(e)      If the particulars furnished by the applicant in the prescribed form for the allotment of shop, are found to be incorrect or false, the shop value deposited by the allottee shall be forfeited and the allotment of shop shall be cancelled by the Authority.

(f)       In the case of allotment of shops on lease basis, the above rules are applicable with necessary changes.

(g)      The expenses on account of stamp duty, registration fees and any other incidental charges in respect of the conveyance shall be borne by the allottee.

Rule - 9. Powers vested in the authority.

(1)     The authority is empowered to allot a site with an area bigger than the one comprised in Category 'F', in accordance with these rules.

(2)     The authority may allot the site of any dimension irrespective of the dimension applied by the applicant and the decision of the authority in this regard shall be final.

(3)     The rate specified in these rules shall be valid for a period of three years from the date of commencement of these rules and are subject to revision after the said period of three years.

(4)     The authority has the right to confirm any transaction of lease or lease-cum-sale. The authority has also the right to cancel any such transaction after recording its reasons. When such transaction is cancelled the amount received from the allottee as deposit shall be refunded to him without interest

Provided that the authority shall not cancel the said transaction after the allottee has completed construction or has started business.

Rule - 10. Restrictions and conditions on the sale of sites and shops.

(1)     The conveyance of the sites and shops in favour of the allottee, hereinafter referred to as the purchaser, shall be subject to the following restrictions, conditions and limitations, namely.

(a)      The allottee shall execute an agreement in Form III.

(b)      The purchaser shall not alienate the site or the shop, as the case may be, to any other person within a period of 10 years from the date of conveyance.

(c)      The allottee shall construct the shop and run the business himself or through his family members within 12 months of taking possession of the site, and commence business within 3 months from the date of the completion of construction of the shop and he shall not allow or permit any third party either to occupy the site and to construct the shop or to run the business over there. These rules apply mutatis mutandis to an allottee under the Services Sector and to an allottee of a Commercial Shop.

(d)      In the event of the purchaser committing breach of any of the conditions, the authority shall, at any time after giving the purchaser a reasonable notice, resume the site or shop, free from all encumbrances.

Explanation. In these rules the reference to the authority shall be deemed to include reference to the Chief Engineer or any subordinate officer of B.T.D.A., Bagalkot, authorised by the authority by a General Resolution, to exercise any power vested in the authority.

(e)      Notwithstanding anything contained in sub-rules (a) and (b) above, but without prejudice to the provisions of Rule 9, a purchaser on lease-cum-sale basis may where for reasons beyond his control, he was unable to occupy and run the business in the allotted site or shop, by reason of his insolvency or any other cause, and it has become necessary for him to sell the site or the shop, the authority, apply to the authority and the authority shall with the previous approval of the Government.

(i)       require him to surrender the site or shop, in its favour; or

(ii)      permit him to sell the site or shop:

Provided that if the allottee desires to surrender the site or shop, the authority shall pay back to the allottee, the value of the allotted site or shop, paid by the allottee, and where the authority permits the allottee to sell the site or shop, the purchaser shall pay to the authority a sum equal to the amount of interest at 12% p.a., on the allotted value of the site or shop.

(f)       The rules contained in clause (d) above apply, mutatis mutandis, to a purchaser of services site and a commercial shop.

Rule - 11. Voluntary Surrender.

(1)     The allottee is at liberty, at any time after the allotment, to surrender the site or shop, allotted to him by the authority. Upon such surrender, the authority shall refund all the amount paid by the purchaser in respect of the allotment of site or shop, except the registration fee.

(2)     If the authority is unable to allot sites or shops to all the eligible applicants, then the entire Registration Fee paid by the unsuccessful applicant shall be refunded to him without interest.

(3)     If an allottee is for any reason unable to carry out the business or as the case may be the service or where within the period of lease the allottee dies and his legal representatives are unable to continue the said business or service, the allottee or as the case may be the legal representatives may after obtaining approval in writing of the authority sub-lease it to any other person for the purpose of carrying on any business or service activity :and such sub-lessee is bound by the rules under which the site or the shop is allotted to the allottee.