- Email: [email protected]
Plot acquisition for self-build housing
Land Use Poficy, Vol. 14, No. 2, pp. 81-97, 1997
Pergamon PII: S0264-8377(96)00031-2
© 1997 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0264-8377/97 $17.00 + 0.00
Plot acquisition for self-build housing Problems in Bhubaneswar City, India
Krishna Chandra Rath and Jayant Kumar Routray
The process of plot acquisition, development and construction of house is very complex in the private unserviced land market due to lack of information, high dependence on land brokers and inadequate institutional arrangements for land development and plot sales. The case of Bhubaneswar City in Eastern India is used to highlight the issues connected with plot acquisition and house building and to explain the factors required to be strengthened in the overall context of planned development. Specifically the pattern of ownership, process of land subdivision, transaction, transfer, development and final use for house construction are looked at. The study suggests curbing land prices, and intensifying infrastructure and service facilities, and indicates the need for the revision of the existing planning regulations to streamline the control mechanism. © 1997 Elsevier Science Lid. The authors are with the Human Settlements Development Program, School of Environment, Resources and Development, Asian Institute of Technology, GPO Box 2754, Bangkok 10501, Thailand [Tel: (66-2) 524-5609; fax: (66-2) 524-6132; email: [email protected]].
Land is considered one of the most important assets for anybody. Availability of land is the key issue for all kinds of activities, from agriculture to intensive urban development. A rapidly growing population with a changing occupational pattern is making land more and more scarce. In the present context of urban development in developing countries, many land issues have assumed greater importance and have thus generated a lot of studies and research, focused on urban land management dynamics. There is always a great gap between demand and supply of land in urban areas. The lack of organized urban land development practices, information systems, control mechanisms and clear policy guidelines, retards the overall development process. The urban sprawl and scattered development pattern, conflicting land use, squatter and slums, inadequate infrastructural network, land shortage and high land price are some of the consequences of poor land management practices most commonly observed in the old and also new planned urban centers and suburban areas around the cities of India. Misra very rightly observed that in the context of developing countries, shelter issues for the poor and the low income groups dominate, and therefore, very often, urban land management issues are viewed by the decision makers as a trade-off between welfare and development (Misra, 1990, p. 7). Although the governments of most Asian countries have adopted some form of statutory land use planning, together with land subdivision and building construction regulations, as measures to improve urban development and land use, very few governments have formulated explicit objectives and policy on the ownership and use of urban land so as to guide and coordinate their own land activities and involvements (Archer, 1992, p. 66). Indian cities are faced with the various challenges of providing an adequate supply of land at affordable prices. Urban land management in some of the Indian states has been highly influenced by the use of the plot reconstruction (PR) technique in town
81
Plot acquis#ion and self build housing." K C Rath and J K Routrav
planning schemes. This approach has similarities with the land pooling/ readjustment schemes. The plot reconstruction technique provides a mechanism for temporary pooling of land holdings in urban fringe areas for their unified planning and subdivision, and collection of betterment charges to finance the infrastructure costs. However, the schemes have been criticized mainly for their long processing time, implementation delays and inadequate cost recovery (Acharya, 1989, p. 71). With inadequate policy framework and lack of well defined control mechanisms, many attempts for planned urban development by the city development authorities have failed miserably due to excessive power play of private organizations/individuals and, at times, the government agencies as either passive participants or active collaborators with the private forces in the whole process of urban development and planning.
Urban land situation in India It has been found that major distortions in urban development are, to a great extent, due to poor management of urban land (Misra, 1986, p. 1). Approximately 70% of India's urban households currently reside in costly, unplanned and unserviced settlements (Billard, 1993, p. 53). Recent trends of urbanization in India clearly show the period of rapid metropolitanization. The metropolitan cities have not been able to cope with this rapid and high population growth. The direct impact of the polarized urbanization is the increasing demand for developed land for urban expansion in the metropolitan cities. No towns or cities in India are free from illegal subdivision of land or transactions coupled with speculation and soaring land prices. The use of land in many cases does not conform with the land use zoning (planning) . The fast conversion of good farm land around larger towns and cities is a striking phenomenon. Unauthorized construction, violation of town planning regulations and regularizing illegal construction and use are some of the pressing issues confronting planners and administrators almost every day. Gangaje has rightly observed that currently legal and administrative procedures support a speculative land market, and this has been a persistent problem in countries like India which are experiencing land scarcity in certain areas (Gangaje, 1992, p. 273). As a precautionary measure, several attempts were made in the past and are also currently taking place to streamline the process of land development and land use by imposing regulations and policy network. The important aspects of the current practice are: (1) enforcement of Town and Country Planning and Development Authority Act in all states of the country (zoning regulation, land use planning, control on building design and construction, etc.); (2) adoption of Town Planning Schemes and Plot Reconstruction Technique as one of the methods of land development and redistribution; (3) implementation of the urban Land Ceiling and Regulation Act (ULCRA) of 1976 to control the excess land beyond the specified limit; (4) encouraging private sector participation in land development; and finally (5) Land and urban Development Policy. The principal aim of this paper is to present a picture of a plot acquisition and the house building process as practised by individuals and to highlight issues and conflicts that arise out of such practices in the context 82
Plot acquisition and self-build housing." K C Rath and J K Routray
of overall planned development. This study is based on an extensive survey and empirical study in one of the fastest growing localities of Bhubaneswar City which forms part of the upcoming new center for the city.
Background of Bhubaneswar City Bhubaneswar, the capital city of Orissa is one of the new towns of the Indian subcontinent planned in the second part of the 20th century. Initially the city was planned to accommodate only 40000 people with administration and services as the main functions of Bhubaneswar in 1954. At the time of the 1991 census, the population of Bhubaneswar was 411542 and it has registered a population growth of about 88% during 1981-1991. The average population density was 3300 people per sq km in 1991. By the end of 2001, the population of Bhubaneswar is expected to reach nearly one million as the city is becoming more and more attractive to regional and national organizations and investors. The functional character of the city is changing from services to diversified activities. The population growth during 1961-1971 (176%) at Bhubaneswar put enormous pressure on housing, services and on the immediate land use pattern in and around the city. The development thrust is naturally focused on land. Land transaction, development, management and land use are becoming complicated in some of the villages within the Master Plan area and also in peripheral suburban tracts. More than 50% of land available within the Bhubaneswar Development Authority (BDA) area is owned privately by individuals. A continuously increasing demand for land within the BDA has generated a speculative land market with broker dominated fraudulent transactions and unorganized development in some parts of the city. The development control mechanism of the BDA is slow and does not keep pace with the fast growth and development of the city, and it is therefore becoming chaotic in many instances. At present there are 66 major slums and squatter settlements within the city having a population of about 55000 with a share of about 13% of the total population of Bhubaneswar (Sahoo, 1994, p. 56). There are a large number of organizations either directly or indirectly involved in the land and housing development and management of Bhubaneswar City (Figure 1). The majority of them are government and public organizations. In the present situation, a good number of private organizations are also engaged in developing land and building houses in the city. The important functions under land development and management include several aspects--urban development and planning, policy framework, guidelines, leasing of the government land, land and housing development, infrastructure development, land use planning and enforcement of development control. During the last 10 years, a total of 5832 cases were lodged against builders who were either found deviating from the approved plan or who made unauthorized house constructions. A total of 1002 enforcement cases (17.2%) were ordered for demolition. However, a high percentage (77.3%) of cases are still pending for final decisions. The issue is quite alarming in the context of Bhubaneswar City. As the city is rapidly growing larger and larger in terms of population and spatial expansion, the BDA has to devise a better mechanism for controlling and regulating development (very much linked to land) in such a way that the city would be functionally sound. Land management and development practices have wide implications on
83
Plot acquisition and self-build housing: K C Rath and J K Routray
//"BDA I (Urban Development Planning and ~,, Management~ J ~(
I
Housing and Urban evelopment Departme (Policy,~ framework & Guidelines)
Office of the Sub-Registrar Land Registration)
Office of the Tahasildar (Land Record)
OSHB (Land & Housing Development)
GA Department Govt. of Orissa (Leasing Land)
OSCHC (Land & Housing Development) RESPONSIBLE FO R~i LAND DEVEL()PMEN'I !~AND MANAGEMENT
Private Developers (Land & Housing Development)
Directorate of Town Planning (Physical & Policy Planning)
Figure 1. Agencies responsible for land development and management.
I. 2. 3. 4. 5. 6. 7.
Infrastructure Building Institutions Public Health Department Roads & Buildings Orissa State Electricity Board Bhubanesh.war Municipality Public Works Department [DCO (Industrial Estate) Telecommunications
developing infrastructure, controlling growth and density, meeting housing requirements and fulfilling services and facilities. Under the present situation, there is a pressing need to study the issues connected with plot acquisition and development process as a part of overall land management practices in Bhubaneswar City in order to formulate an effective land management policy and development system. S t u d y m e t h o d o l o g y a n d s a m p l e area In Bhubaneswar, one sample area is selected for indepth investigation and understanding of the land development and management dynamics. The area (Jayadev Vihar and Acharya Vihar) is juxtaposed to Nayapalli--one of the largest private residential colonies developed very recently on government land by individuals through a leasehold system during the last 15 years. Extension of infrastructure and service facilities to Nayapalli by the government agencies has subsequently enhanced the land value of the adjoining areas. The sample area forms part of a natural drainage system which was covered by paddy fields just a few years ago. This area constitutes part of the central area of the city and is surrounded by plenty of public land. One of the biggest squatter settlements has also developed 84
Plot acquisRion and self-build housing: K C Rath and J K Routray
here on the public land. The settlement development on the private land without adequate infrastructural facilities is characterized by narrow and unpaved roads and a good measure of deviation from the existing town planning regulations. Therefore, the study is focused on this particular area. The study is based on a primary household survey through a structured questionnaire. A valid sample of 120 households was drawn out of 985 households by systematic sampling principles using the Tables for Statisticians by Arkin and Colton (1963) which satisfies the 95% confidence level and 5% precision. The response rate among the residents of the sample area was 100%. About 12% of households were sampled to interpret the results of this survey; this is considered statistically adequate for a significant research.
Plot size and price (past and present) The plots are categorized into six groups based on size. The size varies from 1800 sq. ft to more than 4200 sq. ft. The maximum number of plots (19%) fall within the size category between 2400 and 3000 sq. ft. The majority of the buyers (55%) have plots below 3000 sq. ft. At the time of purchasing, the average price paid for the minimum size plot (1800 sq. ft) was only Rs 6589.00 which was increased to Rs 85588.00 (approximately 13 times) within a period of, say, the last 30 years. Similarly, the larger plots (4200 sq. ft) were purchased with an average amount of Rs 22910.00 per plot and in the present situation the average price is about Rs 191477.00, registering an increase of more than eight times, as compared to the period of purchase. The price of the plot is decided on the basis of the location, physical condition of the plot (low land and water logging), availability of facilities and basic services, etc. From the three year moving average of unit land price, it is understood that the price has gone up more than 30 times between 1955 and 1991. With this kind of change, it is established from regression analysis and using line of best fit that the land price will be around Rs 85.00 per sq. ft by the turn of the present century, which is 3.6 times that of 1991 (Rs 23.24 per sq. ft) (Figure 2), thus it would drastically prohibit the lower income group of people from being able to buy and acquire even a small piece of land for minimum shelter provision. It has been observed that the market value of land in and around the Bhubaneswar Master Plan Area has been increasing at a faster rate in recent times, but the actual value is not shown in the documents at the time of the land registration. Therefore, the government has lost a very significant amount of public earnings from the land registration tax. As a response to this, the Inspector General of registration, Orissa, fixed the value of land on the basis of the value already registered and also considering other relevant factors, basically for two categories of land, i.e. either (i) within 40 ft of the road or (ii) further than 40 ft from the road of the Revenue villages within the Bhubaneswar Development Authority area. It is observed that the minimum value is Rs 45000.00 per acre of land and the maximum Rs 1 250000.00. The wide variation of land value in and around Bhubaneswar is quite obvious because of the Iocational advantage of the villages, proximity to the city center, availability of infrastructural facilities and services and characteristics of the land. The higher land values of peripheral villages are due either to being located close to the main transport network or to newly developed housing colonies by the Bhubaneswar Development Authority and Orissa State Housing Board. 85
Plot acquisition and self-build housing: K C Rath and J K Routray 25
m
20
--
0°
m ~
Figure 2. Land price at different times 1955-1990 (three year moving average).
I0
--
5
--
0~0,0
[
0 55
6O
,--!-"-o'° ? 65
70
00 •
I
I
I
I
75
80
85
90
Year
P l o t s e a r c h a n d l a n d related i n f o r m a t i o n The search process for acquiring a plot starts from the source of land information. Basically there are four important sources of information that individuals (potential buyers) use while looking for a piece of land in the urban area. More than half of the respondents (55.8%) have used friends in the workplace and close relatives as a source of information in purchasing land. The next important source of information is the land brokers (peons and office assistants from surrounding villages of Bhubaneswar), used by 20% of the respondents in buying land. This source is not very reliable in the present situation as the potential buyers are subjected to cheating and fraudulent dealings from the land search to finally taking possession of the land. Using the land owner as a source of information is very rarely used and this is the case for only one sixth (16.7%) of the buyers. The land brokers do not usually facilitate any interaction with the land owners before the date of land registration; thus, they maximize the margin of their commission. Similarly, in many cases, the land owners prefer not to interact directly with the potential buyers as they assign the responsibility to identified brokers for land subdivision, sales promotion, maintenance of the land (protection against the unauthorized occupants, payment of land tax in the concerned office on their behalf, etc.), giving plot possession verifying the measurement to the clients and also supervising at the time of constructing the compound wall for land demarcation, etc. The last source of information is through advertisement. This is insignificant as only 7.5% of the respondents have used it. In private land transaction, advertising is rarely carried out for promoting sales either by landlords or brokers.
Land broker The major function of the broker is to provide services related to plot acquisition. The type of services include helping the client in verifying the land particulars, disseminating information about land, arranging the client's visit to different locations, and also helping in land registration, etc. In addition to this, about one fifth of brokers operating in the study area are also involved in fixing the land price jointly with the land owner 86
Plot acquisition and self-build housing: K C Rath and J K Routray
are sometimes given responsibility to serve as care takers of the land (guarding against unauthorized occupants), to subdivide the land, to construct the compound wall for the demarcation purposes (in rare cases) and to regularly pay land tax on behalf of the land owners. Because of all these activities, those brokers have also employed people to assist them in this current profession of land broking. Most of the land brokers are the natives of nearby revenue villages who have information on land owners, a thorough knowledge of the locality and access to land records. All the brokers have data and information on land titles, payment of land tax, land ownership documents, and some of them have cadastral sheets with proposed and approved land use maps of selected localities. Important ways to disseminate information now under practice by the brokers are to directly approach potential clients and to approach through known and key persons of the locality. The brokers never use advertising media for disseminating information. This helps to save the cost of dissemination and, on the other hand, to protect themselves if they are involved in any kind of fraudulent land transaction. The brokers all have very strong linkages and contacts with all the organizations involved in land transaction and development.
Establishing contact with the broker It has been mentioned that one fifth of the respondents received land related information through the broker. Almost all of the present buyers have contacted the brokers through their neighbors and colleagues (69.2%) or through relatives (15.8%) known to the brokers. The other contact points with the brokers are either through employees/officials of the Bhubaneswar Development Authority or Town Planning Department and Tahsil Office (the office responsible for land records, mutation and collection of land tax). About 15% of the respondents used this channel to contact the brokers. Frequently the brokers visit these offices for various purposes like collection of information about the permissible use of land as per the zoning regulation, building plan preparation and approval, and verifying land records, etc.
Fraudulent dealings The study shows (Table 1) that the majority of the respondents (about 72%) have been given a different plot location and false information about its permissible use. Little more than half the respondents also dealt with forged documents. A good proportion of respondents (45%) were either lost advance money or encountered false owners. Out of the total reported cases of all types of fraudulent dealings, just over half the cases have undergone at least one fraudulent deal of one type of other. Just over one-third of the cases have twice faced fraudulent transactions. A small number of plot seekers (about 5%) underwent three fraudulent dealings. Of all, only 12.5% cases were completely free from such problems while buying a plot. From probability analysis, it is shown from data that the proportion of all fraudulent cases to the total number of expected cases is 32.5% for one fraudulent deal, 21.5% for two and it is smallest (3.2%) for three. Overall, just over half of those sampled are expected to face fraudulent cases. But in reality, a vast majority of plot seekers (87.5%) have experienced at least one type of fraudulent dealing, including poor information while transacting the urban land. The potential fraudulent deal are the loss of advance money for the land, forged land documents (unclear
87
Plot acquisition and self build housing." K C Rath and J K Routray Table 1. Fraudulent dealings by type and number of cases (multiple response).
Expected cases
All cases proportional to total no. of expected cases (%)
56.8 37.6 5.6
600 600 600
32.5 21.5 3.2
100.0
600
57.1
Reported cases under different cases Total cases No. of times
Advance lost
Once 25 Twice 27 Thrice 3 Total no. of buyers No. 55 % 45.8 WMI 1.6 Rank 2
Forged document
Wrong information about location
Wrong information about use
False owner
No.
45 16
29 45 13
49 34 3
47 7 --
195 129 19
61 50.8 1.26 4
87 72,5 1.81 1
86 71.66 1.46 3
54 45.0 1,12 5
343 100.0 1.48
%
Source: Field Survey, 1994.
land title, power and authority of the person to transfer, etc.), erroneous information about the location and use of the land as per the zoning and land use regulations, false owners and false ownership records. The land record is not usually updated immediately after sale of the land. After land registration it takes years to procure the updated land title certificate with mutation; therefore this gives enough scope for fraudulent transactions. In the process of land search only about one fifth of the respondents have succeeded in getting land at the first attempt, followed by two fifths in the second and equal proportion in the third (or more) attempts to get the plot. The buyers who have taken more chances in getting the plot have undergone a variety of hurdles and were subjected to fraudulent dealings. As mentioned in Table 1, the weighted mean index (WMI) value of individual types of fraudulent activity is discussed below in order of importance to highlight the severity of the problem: (1) erroneous information about the location of the plot (WMI = 1.81); (2) advance money lost (WM1 = 1.60); (3) erroneous information about the use of the plot as per the zoning plan (WMI = 1.46); (4) forged document (WMI = 1.26); and (5) false owner (WMI = 1.12). There is a significant relationship between the number of chances of success in getting the plot and the number of fraudulent dealings. This is true for all types of fraudulent cases as mentioned above. This means that the more success in obtaining a plot, the higher is the incidence of fraudulence. The interrelationship and linkages of fraudulent dealings of land transaction is presented in Figure 3.
Verification of the plot particulars There are four aspects which should be verified before negotiation or making any decision for land purchases. They are site verification, consultation with the owners of the surrounding plots, verification of land records and recommended use as per the zoning regulation. Verification of the location and characteristics of the land are very important before proceeding further. Out of 120 samples, about three quarters of the buyers (89) have visited the site. In a few cases, the buyer has made as many as nine visits to the site for various reasons to verify the land particulars. Of those who visited the sites, about two fifths have made only a single visit, one tenth, two visits and one fifth, three visits to the sites. The remaining quarter of the buyers have made more than three visits to the sites. To
88
Plot acquisition and self-build housing. K C Rath and J K Routray (A) Interrelationship of Fraudulent Dealings
W1L, Wrong Information About Location; LAM, Loss of Advanced Money; WIEL, Wrong Information About Land Use; FD, Forged Document, FO, False Owner
(B) Potential Factors and Linkages of Fraudulent Dealings /
/ /
I~
.~
/
_......Wrong Information AboutLocation (Index
~
~ ~
~
~
~
~ ~k
~
~ "
~
~IL°ssof Advanced Money (index Value = 1.6)
~
~
~
~ v
Figure 3. Interrelationship and linkages of fraudulent dealings.
~ ~I~,~ rorgea vocument (Index Value = 1.26) (FD)
/ /
/ Wrong Information About Expected Land Use (IndexValue = 1.46) (WIEL)
check the particulars and consultation with the owners of the surrounding plots, only 40% of buyers visited them. Only 58 people, less than half of the total buyers, verified the land records before purchase and many of the buyers totally ignored this step and, therefore, ended up with fraudulent transactions and disputed cases. Even if the land record and particulars are found correct and satisfactory, nothing can be constructed on the plot without an approved plan unless it is confirmed with the zoning regulation. Therefore, this point was discussed with the sample respondents and it was found that 85% of them have either directly or indirectly verified the proposed land use of the locality and the concerned plot. Therefore, of those who have verified, only 18.3% of them have done so officially in the BDA, 45.9% have done through employees of the BDA and 21.7% used other channels (through brokers, friends, etc.) to verify the use of the land under consideration. 89
Plot acquisition and self-build housing." K C Rath and J K Routray
[~=i~>~~ ~ , S t e p s :~'F~=~o~~~! [+g~v c~e' ~? 2~~ ~ y Buyers ~ ]
[ Verification of the Land Record
I Verificatk Neighbori
I I
Verifical the Loci
Land Tax Receipt
1 Verific the Lain
Encrumbance Certificate
I
I
Land Tax Receipt
Mutation Certificate
I
I
Verification from the Tahasil Office
Verification from the Neighboring Owners
Mutation Certificate
Verification from the Local Amina
I I
J
Encrumbance Certificate
Verification from the Tahasil Office
I
I
Verification about Permissible Land Use
Verification about Permissible Land Use
J
I
Plot Registration
Plot Registration
I Figure 4. Verification steps followed before plot possession.
Plot Possession
[~ S t e p .F! Q ~~{ ~ ~
I
I
I
Plot Possession
In the sample area, out of the total plots transacted, 39.2% constitute the plain land, 16.7% of the lands are undulating and maximum plots (44.2%) are low and water logging land. In terms of use, at the time of purchasing, 45% of plots were agricultural land; 45.8% were barren and 9.2% were under waste land.
Verification steps before possession of the plot After preliminary investigations about the land, the prospective buyers are supposed to verify different documents and check at different land related offices to authenticate the ownership of the land and confirm potential (permissible) and intended use. The process is long and, no doubt, complicated due to lack of a systematic and organized land information system. As a result, buyers are open to cheating and fraudulent dealings by the brokers and other similar agencies involved in land transaction. The respondents were asked to rank the verification steps that they have followed in order of priority to ascertain how careful the buyers are in the land search and possession process. It is found that respondents have not considered the sequential steps (Figure 4) as important and, therefore,
90
Plot acquisition and self'build housing: K C Rath and J K Routray
have not followed all of them systematically. More than 60% of the respondents ranked up to the sixth place and overall the response is about 60% for this purpose. From the WMI value, the order of priority for the verification purpose is as follows: (1) verification of the land record (either from the owner or broker) (WMI = 8.59); (2) encumbance certificate (WMI = 8.19); (3) mutation certificate (in case of current transaction if any) (WMI = 7.60); (4) plot registration (WMI =7.13); (5) land tax receipt (WMI = 7.05); (6) verification about the ownership record of the land from the neighboring owners (WMI = 6.54); (7) verification from the local a m i n a 1 (WMI = 6.32); (8) verification in the Tahsil office (WMI = 6.22); (9) verification of permissible land use (WMI = 6.21); and (10) plot possession (WMI = 6.03). The respondents have done plot registration immediately after checking the land record, encrumbance and mutation certificates but without verifying the recommended use of the plot. This aspect is very important and if this step is not followed, the buyers will face problems while sanctioning the building plan for a specific purpose if not confirmed with the recommended use by the BDA. Similarly, verifying the land particulars with the neighboring plot owners, local amina, the Revenue Inspector and Tahsil office are equally important to cross-check the land ownership and reach a consensus in the absence of updated land records. But those are not given priority by the buyers. These add to the supplementary proof of ownership and information about earlier transaction status if any and, thus, safeguard against cheating. After all these steps and plot registration, the respondents have moved to take the possession in a logical way.
Selection criteria of plot The selection criteria of the residential plot vary from person to person but some of the factors are quite common to the majority of buyers and a group of factors influence the decision of the buyers. It is observed from the analysis that, while searching and selecting the plot, the first and most important criterion is good location (availability of infrastructural facilities), followed by a good price for the land, proximity to the workplace and close to the city center. The second level of criteria (minor), in order of importance are: whether the land is good for commercial use, availability of public transport, whether it is within the same area as close friends and whether there are good community facilities. The decision making process for the selection of the plot is presented in a flow diagram (Figure 5) for better understanding.
Method and mode of money payment for the plot
1Person engaged in land survey and measurement.
From the study, it is observed that approximately one third of the total buyers paid the entire amount in advance before registration of the land, followed by one fifth of the buyers who paid a partial advance and the full balance amount either on the day or after registration of land. Half of the buyers paid by instalments. The average number of instalments per buyer is more than three. As far as the mode of payment is concerned, 86
91
Plot acquisition and self-build housing. K C Rath and J K Routray
[
Major Criteria
[
I
Minor Criteria
[
[
i. Good Locality
~
i 37'5% [5. Good for CommercialUse l
~ 46 6%
1
] of Public [ , 6. Availability I TransportFacility I I~ 23'3%1 I [ . I Land/Plot ] 17. Residence of Close Friends [ 13. Nearness to Work Place~45.0% Selection ] 208%1 ,withinthesameL°cality I I 2. Reasonable Price
]
t 4"Cl°set° the CityCentre ] 41"6% Figure 5. Decision making process for land selection.
I I I
t
9.1% 7.5%
[8. Good CommunityFacilities[ [
]
9. Good for Real Estate [
Cash
~--
Cli~ its/ Bank Draft L,,._] [- [ Pote Ltia]
.l
u E_JI
Through [ Bank Account]
Figure 6. Mode of payment.
--- MajorChannel Minor Channel
respondents (71.7%) paid cash, 15.8% paid by bank draft and the rest settled the payment through the bank account as instructed before the land transaction. The owners received payment directly from half of the clients, through a broker from about a quarter of the clients, and the remaining quarter paid through close friends and relatives of the owners. The mode of payment by the clients to the land owners is presented in Figure 6.
Amount and source o f finance A potential buyer usually arranges money from many different sources-General Provident Fund (GPF)/Contributory Provident Fund (CPF), bank loan, loan from relatives and colleagues, sometimes disposing parental property, selling some ornaments and jewellery, and finally adding money from their own limited savings. More than 65% of the respondents commonly used three sources such as their own source, disposing parental property and ornaments, and another 35-45% of respondents have depended on relatives and colleagues, GPF/CPF and bank loans. In terms of the average amount received per source, it is important to note that the bank is the major source of finance, following by relatives, colleagues and
92
Plot acquisition and selJ:build housing: K C Rath and J K Routray
loans from GPF/CPF. The other important minor sources are disposing of parental property in native rural areas, from their own source from savings and finally by selling ornaments. In the past, availability of house building loans from the commercial banks was neither common nor attractive to the prospective buyers, compared to the present banking situation. In this paragraph, an analysis is made to identify the importance of financial sources and dependency of the buyers in mobilizing finances for buying the plot. The data for each of the cases are separately analyzed by using mean and standard deviation grouping techniques to infer how many buyers use these sources as major sources, depending on the occurrence above the mean level when considered against all the sources for an individual. It is revealed that about 27.5% of the buyers have used their own savings as the major source, followed by a loan from relatives (23.3%), 19.2% mobilized finances from selling parental property, for 17.5% of buyers a bank loan is the major source and 15% used colleagues as a major source of finance and 12.5% are equally dependent on GPF/CPF loans and selling ornaments. Some of the buyers have used more than two sources in securing finance for this purpose. Specifically, 64.2% of buyers have used a single source, 25.8% two and 10% multiple sources.
Process of land transfer From the survey, it is clear that 75% of respondents (89) obtained full transfer of land. Land was transferred to 12.5% of respondents conditionally, subject to full payment of the assessed money at a later period and the rest of the buyers received the land conditionally for a limited period. Before the transfer of the land, about 41% constituted single ownership and 28% double ownership of land. The remaining plots (31%) were owned by three members and in some cases by more than three. At present, 49% of the respondents own plots in their own names, 38% in the names of their wives, 7% and 6% in the names of their sons and daughters, respectively. This is a very common practice and also an important means to procure more than one plot within the area of the BDA. Legally it is not permitted to have two pieces of land, either in one's own name or in one's spouse name as per the present regulation of the State Government. On the day of land registration the percentage of buyers' physical presence in the registration office was about 86.6% and the rest of the land was registered in absentia through a wife, in-laws, father and brother, friends and colleagues. The buyers do not usually take the assistance of lawyers in the matters of land registration.
Assessment of organizations as supportive in the process of land transaction The organizations are placed below in descending order in terms of relevance and user-friendliness in making the availability of plots to buyers, perceived as useful to the buyers: (1) (2) (3) (4) (5)
the broker; Land Registration Office; Municipality Office; Tahsil Office (land records); and Local Planning Office (BDA).
93
Plot acquisition and self-build housing. K C Rath and J K Routray
Similarly, the factors explaining supportiveness of agencies/organizations are also ranked as per the proportion of response to expected response and it is found that buyers give priority as follows: First:
priority for the agency which provides land related documents (ownership/encrumbance/tax/permissible use certificate, etc.); Second: priority to the organizations which are authentic in providing relevant information; Third: those who are punctual--solves problem instantly; Fourth: those who are influential; Fifth: those who are reliable; those who neither cheat nor engage in fraudulent dealings; and Sixth: those who provide a smooth and easy service. Last:
Land development and construction of housing units There are different aspects of infrastructural facility development which support and contribute to land development. The construction of the housing unit is the final product over the developed plot. It is important to know about the condition of the plot at the time of purchasing. Out of 120 cases, only 35 (29%) plots were partially serviced and the rest of the plots were just subdivided and demarcated for the purpose of sale. Of those which were categorized as developed, about 83% of them had access roads and 71% of plots were filled with sand and levelled. In the case of 66% of plots, they had boundary walls and only 31% of plots were serviced with drainage, sewage and power supply lines. It is also observed from the survey that pucka houses which are constructed over 82 plots constitute 68.3% of the total plots, followed by semi-pucka (25%) and k a c h h a z houses (only 6.7%). As far as the type of house is concerned, single storeyed buildings constitute 46.7%, followed by double storeyed (40.0%) and three storeyed buildings share only 13.3% of the total samples. The pattern in general is row housing (33.3%), followed by bundaglow type (27.5%), and the rest of the houses are basically either detached or semi-detached. The majority of the respondents (59.1%) designed their houses with the help of known engineers and architects, 29.1% of them have taken the assistance of government architects and the staff of the BDA and others managed by utilizing professional services of the consultants. It is interesting to note that only 30% of the respondents are aware of the regulations and acts of the Town Planning and Development Authority. However, the majority of them (115), about 96%, have taken approval of the house building plans from the BDA. About 7.8% of the total approved cases were charged fines because of the deviation from the approved plan while constructing the houses. Similarly, in a quarter of the total cases, approval was refused in the first instance as they could not meet the requirements of the planning standards, such as width and access of the approach road, specified requirement of open space on all sides of the plot, etc.
Time interval between plot purchasing and plan approval and construction
2 Mud-wall and thatched roof house.
94
The time gap between plot purchasing and construction of the house has implications on the planning and development control mechanism of the BDA (Table 2). It is quite revealing that about 18% of the buyers took
Plot acquisition and self-build housing." K C Rath and J K Routray Table 2. Time interval between plot purchasing and plan approval and construction. After purchase Completion of house construction work
Possession and plan approval No. After 1 year After 2 years After 3 years After 4 years After 5 years After 6 years After 7 years After 8 years After 9 years After 10 years More than 10 years Total
22 11 13 8 5 14 5 6 3 10 23 120
% 18.3 9.2 10.8 6.7 4.1 11.7 4.2 5.0 2.5 8.3 19.2 100
Cu %
No.
18.3 27.5 38.3 45.0 49.1 60.8 65.0 70.0 72.5 80.8 100.0
30 15 20 13 6 11 4 1 8 7 5
--
120
% 25.0 12.5 16.7 10.8 5.0 9.2 3.3 0.8 6.7 5.8 4.2 100
Cu % 25.0 37.5 54.2 65.0 70.0 79.2 82.5 83.3 90.0 95.8 100.0 --
Source: Field Survey, 1994.
possession of the land and made necessary steps for the approval of the building plans after one year of purchase. Similarly, a quite significant number of buyers, 19.2% of the total sample, took possession of land and approved the building plans after more than 10 years of land purchasing. Overall, about 50% of the buyers took possession after 5 years and simultaneously approved the plan by the BDA. When it is compared against the construction activities, it is interestingly noted that after 5 years, about 70% of the buyers have finished the completion of building construction work, thus, 20% of the buyers have constructed houses initially without approving the plans. The gap between approved and actual constructions continued during the first 5 years of land possession and plan approval (Table 2). The land development and construction of houses are very slow because of unserviced land, coupled with non-availability of required finance for the construction of houses/buildings. This is true in the case of more than 30% of the total buyers. As reported from the survey, it could be observed that a higher percentage of plots (42.5%) remained vacant for a period of 10 to 25 years between the date of purchase and the date of physical occupation, either directly by the buyer or by the tenants under rental condition. It is also revealed from the analysis that 57% of the respondents are the buyer occupants and the rest of the plots are used for rental purposes. This is because of the lack of access roads, basic and municipal services and even community facilities in the vicinity. In other words, the provision of infrastructure facilities and basic services are not concomitant with the sale of plots. This is very common in the private land market. Even if the plots are vacant and land value appreciates very quickly, increases year after year and imbalances the speculative land market. It is also again difficult to monitor and control the land economic dynamics by the Development Authority. On some occasions the vacant plots are the source of many informal activities, not in conformity with the specified urban land use under the zoning regulation.
Conclusion The urban development planning process does not keep pace with the land development. The limited information about the land market monopolized 95
Plot acquisition and self-build housing. K C Rath and J K Routray
by the land brokers constrain the guided, controlled and planned urban development. In searching plots, the buyers have used friends and relatives as the important source of information, assisted by the local land brokers. A large majority have taken more than two chances to buy a piece of land, subjected to varieties of fraudulent dealings while transacting the land. The average number of fraudulent dealings per buyer indicates a higher risk in the land market. More than 50% of the buyers have ignored to verify the land record and other particulars. However, about three quarters of the buyers have frequently visited the site before taking a decision for land registration. The respondents have not followed all the verification steps sequentially and systematically. As a result, they were exposed to cheating and fraudulent dealings. The multicriteria used for selecting a plot are good locality, reasonable price of the land, proximity to the workplace and to the city centre, placed in descending order of priority. The majority of buyers have paid the full amount of money in cash directly to the owners. However, less than one third of the buyers have paid through the broker, or friends and relatives by instalment. The common sources of arranging finance for the land are own sources (savings etc.), disposing of parental landed property in rural areas, and selling jewellery and ornaments. As far as the amount contributed by source is concerned, bank finance is the major source, followed by relatives, colleagues and loans from GPF/CPF. Regardless of fraudulent dealings and other inconveniences, the land broker is considered to be more supportive and dependable, due to lack of other reliable and competing organizations involved in the process of land transaction. The agency which provides land related documents is ranked first, followed by authenticity of i0formation, punctuality, influence, reliability, no cheating and those who provide a smooth and easy service. The land price has gone up 30 times between 1955 and 1991. It is estimated that the current land price will go up 3.6 times by 2001. As the sample area constitutes part of the growing central district of the city, the per acre price would be about 3.7 million rupees. Most of the plots in this case are only subdivided and demarcated but without necessary infrastructural facilities and services. It is very much evident that one fifth of the total buyers have constructed without approving the plans, engaged in a long period of construction activities and there is, conspicuously, a large period of time between the period of land purchase, construction and final occupation.
Policy implication and recommendations L a n d price
As the land price is increasing rapidly, there is a need to break the monopoly of the private land holders with the implementation of the existing land ceiling act, by introducing rental land and housing schemes through public and private institutions and imposing land registration tax, both on the part of the buyers and sellers. The Development Authority (BDA) should reinforce the effective land development and management control practices through TP schemes in the areas of rising land demand. Area concentration of infrastructural facifities and development activities to control urban sprawl
The development activities in terms of providing public infrastructure and service facilities should be concentrated by units to consolidate and control 96
Plot acquisition and self-build housing: K C Rath and J K Routray
urban sprawl and also land price. The ongoing activities of house construction either by the Orissa State Housing Board or Bhubaneswar Development Authority are done very scatteredly. These new housing colonies have consequences on higher infrastructure cost and, at the same time, they have created a speculative land market around the new colonies, thus indirectly contributing to an increasing land price. Needs for revision o f town planning regulation
There is a need to revise the existing planning standards to standardize the plot size further and to enforce planning regulations on the part of the builders to overcome the long time of construction and to control the problems related to constructions without planning approval by the BDA.
References Acharya, B. P. (1989) Equity in plot reconstruction schemes: a tale of three Indian cities. Third World Planning Review 11, 71. Archer, R. W. (1992) An outline urban land development policy for developing countries in Asia. Habitat International 16, 66. Arkin, H. and Cotton, R. R. (1963) Tables for Statisticians. Barnes and Noble Books, New York. Billand, C. J. (1993) Private sector participation in land development: guidelines for increasing cooperation between local government and private developers. Habitat International 17, 53. Gangaje, R. K. (1992) Administration of farmland transfer in urban fringes: lessons from Maharashtra, India. Land Use Policy 9, 273. Misra, B. (1986) Urban development policies in India: focus on land management. In Urban Development Policies and Programs: Focus on Land Management, ed. H. Nagamine, p. 1. UNCRD, Nagoya, Japan. Misra, B. (1990) A comparative study of urban land management (ULM) in selected developing Asian countries and Japan. Economic Research 93, p. 7. November, Economic Research Center, Nagoya University, Nagoya, Japan. Sahoo, N. N. (1994) Slum resettlements and urban development in a planned new town: Bhubaneswar a case study. Ph.D. thesis, Department of Geography, Utkal University, Vanivihar, Bhubaneswar, India.
97
Pergamon PII: S0264-8377(96)00031-2
© 1997 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0264-8377/97 $17.00 + 0.00
Plot acquisition for self-build housing Problems in Bhubaneswar City, India
Krishna Chandra Rath and Jayant Kumar Routray
The process of plot acquisition, development and construction of house is very complex in the private unserviced land market due to lack of information, high dependence on land brokers and inadequate institutional arrangements for land development and plot sales. The case of Bhubaneswar City in Eastern India is used to highlight the issues connected with plot acquisition and house building and to explain the factors required to be strengthened in the overall context of planned development. Specifically the pattern of ownership, process of land subdivision, transaction, transfer, development and final use for house construction are looked at. The study suggests curbing land prices, and intensifying infrastructure and service facilities, and indicates the need for the revision of the existing planning regulations to streamline the control mechanism. © 1997 Elsevier Science Lid. The authors are with the Human Settlements Development Program, School of Environment, Resources and Development, Asian Institute of Technology, GPO Box 2754, Bangkok 10501, Thailand [Tel: (66-2) 524-5609; fax: (66-2) 524-6132; email: [email protected]].
Land is considered one of the most important assets for anybody. Availability of land is the key issue for all kinds of activities, from agriculture to intensive urban development. A rapidly growing population with a changing occupational pattern is making land more and more scarce. In the present context of urban development in developing countries, many land issues have assumed greater importance and have thus generated a lot of studies and research, focused on urban land management dynamics. There is always a great gap between demand and supply of land in urban areas. The lack of organized urban land development practices, information systems, control mechanisms and clear policy guidelines, retards the overall development process. The urban sprawl and scattered development pattern, conflicting land use, squatter and slums, inadequate infrastructural network, land shortage and high land price are some of the consequences of poor land management practices most commonly observed in the old and also new planned urban centers and suburban areas around the cities of India. Misra very rightly observed that in the context of developing countries, shelter issues for the poor and the low income groups dominate, and therefore, very often, urban land management issues are viewed by the decision makers as a trade-off between welfare and development (Misra, 1990, p. 7). Although the governments of most Asian countries have adopted some form of statutory land use planning, together with land subdivision and building construction regulations, as measures to improve urban development and land use, very few governments have formulated explicit objectives and policy on the ownership and use of urban land so as to guide and coordinate their own land activities and involvements (Archer, 1992, p. 66). Indian cities are faced with the various challenges of providing an adequate supply of land at affordable prices. Urban land management in some of the Indian states has been highly influenced by the use of the plot reconstruction (PR) technique in town
81
Plot acquis#ion and self build housing." K C Rath and J K Routrav
planning schemes. This approach has similarities with the land pooling/ readjustment schemes. The plot reconstruction technique provides a mechanism for temporary pooling of land holdings in urban fringe areas for their unified planning and subdivision, and collection of betterment charges to finance the infrastructure costs. However, the schemes have been criticized mainly for their long processing time, implementation delays and inadequate cost recovery (Acharya, 1989, p. 71). With inadequate policy framework and lack of well defined control mechanisms, many attempts for planned urban development by the city development authorities have failed miserably due to excessive power play of private organizations/individuals and, at times, the government agencies as either passive participants or active collaborators with the private forces in the whole process of urban development and planning.
Urban land situation in India It has been found that major distortions in urban development are, to a great extent, due to poor management of urban land (Misra, 1986, p. 1). Approximately 70% of India's urban households currently reside in costly, unplanned and unserviced settlements (Billard, 1993, p. 53). Recent trends of urbanization in India clearly show the period of rapid metropolitanization. The metropolitan cities have not been able to cope with this rapid and high population growth. The direct impact of the polarized urbanization is the increasing demand for developed land for urban expansion in the metropolitan cities. No towns or cities in India are free from illegal subdivision of land or transactions coupled with speculation and soaring land prices. The use of land in many cases does not conform with the land use zoning (planning) . The fast conversion of good farm land around larger towns and cities is a striking phenomenon. Unauthorized construction, violation of town planning regulations and regularizing illegal construction and use are some of the pressing issues confronting planners and administrators almost every day. Gangaje has rightly observed that currently legal and administrative procedures support a speculative land market, and this has been a persistent problem in countries like India which are experiencing land scarcity in certain areas (Gangaje, 1992, p. 273). As a precautionary measure, several attempts were made in the past and are also currently taking place to streamline the process of land development and land use by imposing regulations and policy network. The important aspects of the current practice are: (1) enforcement of Town and Country Planning and Development Authority Act in all states of the country (zoning regulation, land use planning, control on building design and construction, etc.); (2) adoption of Town Planning Schemes and Plot Reconstruction Technique as one of the methods of land development and redistribution; (3) implementation of the urban Land Ceiling and Regulation Act (ULCRA) of 1976 to control the excess land beyond the specified limit; (4) encouraging private sector participation in land development; and finally (5) Land and urban Development Policy. The principal aim of this paper is to present a picture of a plot acquisition and the house building process as practised by individuals and to highlight issues and conflicts that arise out of such practices in the context 82
Plot acquisition and self-build housing." K C Rath and J K Routray
of overall planned development. This study is based on an extensive survey and empirical study in one of the fastest growing localities of Bhubaneswar City which forms part of the upcoming new center for the city.
Background of Bhubaneswar City Bhubaneswar, the capital city of Orissa is one of the new towns of the Indian subcontinent planned in the second part of the 20th century. Initially the city was planned to accommodate only 40000 people with administration and services as the main functions of Bhubaneswar in 1954. At the time of the 1991 census, the population of Bhubaneswar was 411542 and it has registered a population growth of about 88% during 1981-1991. The average population density was 3300 people per sq km in 1991. By the end of 2001, the population of Bhubaneswar is expected to reach nearly one million as the city is becoming more and more attractive to regional and national organizations and investors. The functional character of the city is changing from services to diversified activities. The population growth during 1961-1971 (176%) at Bhubaneswar put enormous pressure on housing, services and on the immediate land use pattern in and around the city. The development thrust is naturally focused on land. Land transaction, development, management and land use are becoming complicated in some of the villages within the Master Plan area and also in peripheral suburban tracts. More than 50% of land available within the Bhubaneswar Development Authority (BDA) area is owned privately by individuals. A continuously increasing demand for land within the BDA has generated a speculative land market with broker dominated fraudulent transactions and unorganized development in some parts of the city. The development control mechanism of the BDA is slow and does not keep pace with the fast growth and development of the city, and it is therefore becoming chaotic in many instances. At present there are 66 major slums and squatter settlements within the city having a population of about 55000 with a share of about 13% of the total population of Bhubaneswar (Sahoo, 1994, p. 56). There are a large number of organizations either directly or indirectly involved in the land and housing development and management of Bhubaneswar City (Figure 1). The majority of them are government and public organizations. In the present situation, a good number of private organizations are also engaged in developing land and building houses in the city. The important functions under land development and management include several aspects--urban development and planning, policy framework, guidelines, leasing of the government land, land and housing development, infrastructure development, land use planning and enforcement of development control. During the last 10 years, a total of 5832 cases were lodged against builders who were either found deviating from the approved plan or who made unauthorized house constructions. A total of 1002 enforcement cases (17.2%) were ordered for demolition. However, a high percentage (77.3%) of cases are still pending for final decisions. The issue is quite alarming in the context of Bhubaneswar City. As the city is rapidly growing larger and larger in terms of population and spatial expansion, the BDA has to devise a better mechanism for controlling and regulating development (very much linked to land) in such a way that the city would be functionally sound. Land management and development practices have wide implications on
83
Plot acquisition and self-build housing: K C Rath and J K Routray
//"BDA I (Urban Development Planning and ~,, Management~ J ~(
I
Housing and Urban evelopment Departme (Policy,~ framework & Guidelines)
Office of the Sub-Registrar Land Registration)
Office of the Tahasildar (Land Record)
OSHB (Land & Housing Development)
GA Department Govt. of Orissa (Leasing Land)
OSCHC (Land & Housing Development) RESPONSIBLE FO R~i LAND DEVEL()PMEN'I !~AND MANAGEMENT
Private Developers (Land & Housing Development)
Directorate of Town Planning (Physical & Policy Planning)
Figure 1. Agencies responsible for land development and management.
I. 2. 3. 4. 5. 6. 7.
Infrastructure Building Institutions Public Health Department Roads & Buildings Orissa State Electricity Board Bhubanesh.war Municipality Public Works Department [DCO (Industrial Estate) Telecommunications
developing infrastructure, controlling growth and density, meeting housing requirements and fulfilling services and facilities. Under the present situation, there is a pressing need to study the issues connected with plot acquisition and development process as a part of overall land management practices in Bhubaneswar City in order to formulate an effective land management policy and development system. S t u d y m e t h o d o l o g y a n d s a m p l e area In Bhubaneswar, one sample area is selected for indepth investigation and understanding of the land development and management dynamics. The area (Jayadev Vihar and Acharya Vihar) is juxtaposed to Nayapalli--one of the largest private residential colonies developed very recently on government land by individuals through a leasehold system during the last 15 years. Extension of infrastructure and service facilities to Nayapalli by the government agencies has subsequently enhanced the land value of the adjoining areas. The sample area forms part of a natural drainage system which was covered by paddy fields just a few years ago. This area constitutes part of the central area of the city and is surrounded by plenty of public land. One of the biggest squatter settlements has also developed 84
Plot acquisRion and self-build housing: K C Rath and J K Routray
here on the public land. The settlement development on the private land without adequate infrastructural facilities is characterized by narrow and unpaved roads and a good measure of deviation from the existing town planning regulations. Therefore, the study is focused on this particular area. The study is based on a primary household survey through a structured questionnaire. A valid sample of 120 households was drawn out of 985 households by systematic sampling principles using the Tables for Statisticians by Arkin and Colton (1963) which satisfies the 95% confidence level and 5% precision. The response rate among the residents of the sample area was 100%. About 12% of households were sampled to interpret the results of this survey; this is considered statistically adequate for a significant research.
Plot size and price (past and present) The plots are categorized into six groups based on size. The size varies from 1800 sq. ft to more than 4200 sq. ft. The maximum number of plots (19%) fall within the size category between 2400 and 3000 sq. ft. The majority of the buyers (55%) have plots below 3000 sq. ft. At the time of purchasing, the average price paid for the minimum size plot (1800 sq. ft) was only Rs 6589.00 which was increased to Rs 85588.00 (approximately 13 times) within a period of, say, the last 30 years. Similarly, the larger plots (4200 sq. ft) were purchased with an average amount of Rs 22910.00 per plot and in the present situation the average price is about Rs 191477.00, registering an increase of more than eight times, as compared to the period of purchase. The price of the plot is decided on the basis of the location, physical condition of the plot (low land and water logging), availability of facilities and basic services, etc. From the three year moving average of unit land price, it is understood that the price has gone up more than 30 times between 1955 and 1991. With this kind of change, it is established from regression analysis and using line of best fit that the land price will be around Rs 85.00 per sq. ft by the turn of the present century, which is 3.6 times that of 1991 (Rs 23.24 per sq. ft) (Figure 2), thus it would drastically prohibit the lower income group of people from being able to buy and acquire even a small piece of land for minimum shelter provision. It has been observed that the market value of land in and around the Bhubaneswar Master Plan Area has been increasing at a faster rate in recent times, but the actual value is not shown in the documents at the time of the land registration. Therefore, the government has lost a very significant amount of public earnings from the land registration tax. As a response to this, the Inspector General of registration, Orissa, fixed the value of land on the basis of the value already registered and also considering other relevant factors, basically for two categories of land, i.e. either (i) within 40 ft of the road or (ii) further than 40 ft from the road of the Revenue villages within the Bhubaneswar Development Authority area. It is observed that the minimum value is Rs 45000.00 per acre of land and the maximum Rs 1 250000.00. The wide variation of land value in and around Bhubaneswar is quite obvious because of the Iocational advantage of the villages, proximity to the city center, availability of infrastructural facilities and services and characteristics of the land. The higher land values of peripheral villages are due either to being located close to the main transport network or to newly developed housing colonies by the Bhubaneswar Development Authority and Orissa State Housing Board. 85
Plot acquisition and self-build housing: K C Rath and J K Routray 25
m
20
--
0°
m ~
Figure 2. Land price at different times 1955-1990 (three year moving average).
I0
--
5
--
0~0,0
[
0 55
6O
,--!-"-o'° ? 65
70
00 •
I
I
I
I
75
80
85
90
Year
P l o t s e a r c h a n d l a n d related i n f o r m a t i o n The search process for acquiring a plot starts from the source of land information. Basically there are four important sources of information that individuals (potential buyers) use while looking for a piece of land in the urban area. More than half of the respondents (55.8%) have used friends in the workplace and close relatives as a source of information in purchasing land. The next important source of information is the land brokers (peons and office assistants from surrounding villages of Bhubaneswar), used by 20% of the respondents in buying land. This source is not very reliable in the present situation as the potential buyers are subjected to cheating and fraudulent dealings from the land search to finally taking possession of the land. Using the land owner as a source of information is very rarely used and this is the case for only one sixth (16.7%) of the buyers. The land brokers do not usually facilitate any interaction with the land owners before the date of land registration; thus, they maximize the margin of their commission. Similarly, in many cases, the land owners prefer not to interact directly with the potential buyers as they assign the responsibility to identified brokers for land subdivision, sales promotion, maintenance of the land (protection against the unauthorized occupants, payment of land tax in the concerned office on their behalf, etc.), giving plot possession verifying the measurement to the clients and also supervising at the time of constructing the compound wall for land demarcation, etc. The last source of information is through advertisement. This is insignificant as only 7.5% of the respondents have used it. In private land transaction, advertising is rarely carried out for promoting sales either by landlords or brokers.
Land broker The major function of the broker is to provide services related to plot acquisition. The type of services include helping the client in verifying the land particulars, disseminating information about land, arranging the client's visit to different locations, and also helping in land registration, etc. In addition to this, about one fifth of brokers operating in the study area are also involved in fixing the land price jointly with the land owner 86
Plot acquisition and self-build housing: K C Rath and J K Routray
are sometimes given responsibility to serve as care takers of the land (guarding against unauthorized occupants), to subdivide the land, to construct the compound wall for the demarcation purposes (in rare cases) and to regularly pay land tax on behalf of the land owners. Because of all these activities, those brokers have also employed people to assist them in this current profession of land broking. Most of the land brokers are the natives of nearby revenue villages who have information on land owners, a thorough knowledge of the locality and access to land records. All the brokers have data and information on land titles, payment of land tax, land ownership documents, and some of them have cadastral sheets with proposed and approved land use maps of selected localities. Important ways to disseminate information now under practice by the brokers are to directly approach potential clients and to approach through known and key persons of the locality. The brokers never use advertising media for disseminating information. This helps to save the cost of dissemination and, on the other hand, to protect themselves if they are involved in any kind of fraudulent land transaction. The brokers all have very strong linkages and contacts with all the organizations involved in land transaction and development.
Establishing contact with the broker It has been mentioned that one fifth of the respondents received land related information through the broker. Almost all of the present buyers have contacted the brokers through their neighbors and colleagues (69.2%) or through relatives (15.8%) known to the brokers. The other contact points with the brokers are either through employees/officials of the Bhubaneswar Development Authority or Town Planning Department and Tahsil Office (the office responsible for land records, mutation and collection of land tax). About 15% of the respondents used this channel to contact the brokers. Frequently the brokers visit these offices for various purposes like collection of information about the permissible use of land as per the zoning regulation, building plan preparation and approval, and verifying land records, etc.
Fraudulent dealings The study shows (Table 1) that the majority of the respondents (about 72%) have been given a different plot location and false information about its permissible use. Little more than half the respondents also dealt with forged documents. A good proportion of respondents (45%) were either lost advance money or encountered false owners. Out of the total reported cases of all types of fraudulent dealings, just over half the cases have undergone at least one fraudulent deal of one type of other. Just over one-third of the cases have twice faced fraudulent transactions. A small number of plot seekers (about 5%) underwent three fraudulent dealings. Of all, only 12.5% cases were completely free from such problems while buying a plot. From probability analysis, it is shown from data that the proportion of all fraudulent cases to the total number of expected cases is 32.5% for one fraudulent deal, 21.5% for two and it is smallest (3.2%) for three. Overall, just over half of those sampled are expected to face fraudulent cases. But in reality, a vast majority of plot seekers (87.5%) have experienced at least one type of fraudulent dealing, including poor information while transacting the urban land. The potential fraudulent deal are the loss of advance money for the land, forged land documents (unclear
87
Plot acquisition and self build housing." K C Rath and J K Routray Table 1. Fraudulent dealings by type and number of cases (multiple response).
Expected cases
All cases proportional to total no. of expected cases (%)
56.8 37.6 5.6
600 600 600
32.5 21.5 3.2
100.0
600
57.1
Reported cases under different cases Total cases No. of times
Advance lost
Once 25 Twice 27 Thrice 3 Total no. of buyers No. 55 % 45.8 WMI 1.6 Rank 2
Forged document
Wrong information about location
Wrong information about use
False owner
No.
45 16
29 45 13
49 34 3
47 7 --
195 129 19
61 50.8 1.26 4
87 72,5 1.81 1
86 71.66 1.46 3
54 45.0 1,12 5
343 100.0 1.48
%
Source: Field Survey, 1994.
land title, power and authority of the person to transfer, etc.), erroneous information about the location and use of the land as per the zoning and land use regulations, false owners and false ownership records. The land record is not usually updated immediately after sale of the land. After land registration it takes years to procure the updated land title certificate with mutation; therefore this gives enough scope for fraudulent transactions. In the process of land search only about one fifth of the respondents have succeeded in getting land at the first attempt, followed by two fifths in the second and equal proportion in the third (or more) attempts to get the plot. The buyers who have taken more chances in getting the plot have undergone a variety of hurdles and were subjected to fraudulent dealings. As mentioned in Table 1, the weighted mean index (WMI) value of individual types of fraudulent activity is discussed below in order of importance to highlight the severity of the problem: (1) erroneous information about the location of the plot (WMI = 1.81); (2) advance money lost (WM1 = 1.60); (3) erroneous information about the use of the plot as per the zoning plan (WMI = 1.46); (4) forged document (WMI = 1.26); and (5) false owner (WMI = 1.12). There is a significant relationship between the number of chances of success in getting the plot and the number of fraudulent dealings. This is true for all types of fraudulent cases as mentioned above. This means that the more success in obtaining a plot, the higher is the incidence of fraudulence. The interrelationship and linkages of fraudulent dealings of land transaction is presented in Figure 3.
Verification of the plot particulars There are four aspects which should be verified before negotiation or making any decision for land purchases. They are site verification, consultation with the owners of the surrounding plots, verification of land records and recommended use as per the zoning regulation. Verification of the location and characteristics of the land are very important before proceeding further. Out of 120 samples, about three quarters of the buyers (89) have visited the site. In a few cases, the buyer has made as many as nine visits to the site for various reasons to verify the land particulars. Of those who visited the sites, about two fifths have made only a single visit, one tenth, two visits and one fifth, three visits to the sites. The remaining quarter of the buyers have made more than three visits to the sites. To
88
Plot acquisition and self-build housing. K C Rath and J K Routray (A) Interrelationship of Fraudulent Dealings
W1L, Wrong Information About Location; LAM, Loss of Advanced Money; WIEL, Wrong Information About Land Use; FD, Forged Document, FO, False Owner
(B) Potential Factors and Linkages of Fraudulent Dealings /
/ /
I~
.~
/
_......Wrong Information AboutLocation (Index
~
~ ~
~
~
~
~ ~k
~
~ "
~
~IL°ssof Advanced Money (index Value = 1.6)
~
~
~
~ v
Figure 3. Interrelationship and linkages of fraudulent dealings.
~ ~I~,~ rorgea vocument (Index Value = 1.26) (FD)
/ /
/ Wrong Information About Expected Land Use (IndexValue = 1.46) (WIEL)
check the particulars and consultation with the owners of the surrounding plots, only 40% of buyers visited them. Only 58 people, less than half of the total buyers, verified the land records before purchase and many of the buyers totally ignored this step and, therefore, ended up with fraudulent transactions and disputed cases. Even if the land record and particulars are found correct and satisfactory, nothing can be constructed on the plot without an approved plan unless it is confirmed with the zoning regulation. Therefore, this point was discussed with the sample respondents and it was found that 85% of them have either directly or indirectly verified the proposed land use of the locality and the concerned plot. Therefore, of those who have verified, only 18.3% of them have done so officially in the BDA, 45.9% have done through employees of the BDA and 21.7% used other channels (through brokers, friends, etc.) to verify the use of the land under consideration. 89
Plot acquisition and self-build housing." K C Rath and J K Routray
[~=i~>~~ ~ , S t e p s :~'F~=~o~~~! [+g~v c~e' ~? 2~~ ~ y Buyers ~ ]
[ Verification of the Land Record
I Verificatk Neighbori
I I
Verifical the Loci
Land Tax Receipt
1 Verific the Lain
Encrumbance Certificate
I
I
Land Tax Receipt
Mutation Certificate
I
I
Verification from the Tahasil Office
Verification from the Neighboring Owners
Mutation Certificate
Verification from the Local Amina
I I
J
Encrumbance Certificate
Verification from the Tahasil Office
I
I
Verification about Permissible Land Use
Verification about Permissible Land Use
J
I
Plot Registration
Plot Registration
I Figure 4. Verification steps followed before plot possession.
Plot Possession
[~ S t e p .F! Q ~~{ ~ ~
I
I
I
Plot Possession
In the sample area, out of the total plots transacted, 39.2% constitute the plain land, 16.7% of the lands are undulating and maximum plots (44.2%) are low and water logging land. In terms of use, at the time of purchasing, 45% of plots were agricultural land; 45.8% were barren and 9.2% were under waste land.
Verification steps before possession of the plot After preliminary investigations about the land, the prospective buyers are supposed to verify different documents and check at different land related offices to authenticate the ownership of the land and confirm potential (permissible) and intended use. The process is long and, no doubt, complicated due to lack of a systematic and organized land information system. As a result, buyers are open to cheating and fraudulent dealings by the brokers and other similar agencies involved in land transaction. The respondents were asked to rank the verification steps that they have followed in order of priority to ascertain how careful the buyers are in the land search and possession process. It is found that respondents have not considered the sequential steps (Figure 4) as important and, therefore,
90
Plot acquisition and self'build housing: K C Rath and J K Routray
have not followed all of them systematically. More than 60% of the respondents ranked up to the sixth place and overall the response is about 60% for this purpose. From the WMI value, the order of priority for the verification purpose is as follows: (1) verification of the land record (either from the owner or broker) (WMI = 8.59); (2) encumbance certificate (WMI = 8.19); (3) mutation certificate (in case of current transaction if any) (WMI = 7.60); (4) plot registration (WMI =7.13); (5) land tax receipt (WMI = 7.05); (6) verification about the ownership record of the land from the neighboring owners (WMI = 6.54); (7) verification from the local a m i n a 1 (WMI = 6.32); (8) verification in the Tahsil office (WMI = 6.22); (9) verification of permissible land use (WMI = 6.21); and (10) plot possession (WMI = 6.03). The respondents have done plot registration immediately after checking the land record, encrumbance and mutation certificates but without verifying the recommended use of the plot. This aspect is very important and if this step is not followed, the buyers will face problems while sanctioning the building plan for a specific purpose if not confirmed with the recommended use by the BDA. Similarly, verifying the land particulars with the neighboring plot owners, local amina, the Revenue Inspector and Tahsil office are equally important to cross-check the land ownership and reach a consensus in the absence of updated land records. But those are not given priority by the buyers. These add to the supplementary proof of ownership and information about earlier transaction status if any and, thus, safeguard against cheating. After all these steps and plot registration, the respondents have moved to take the possession in a logical way.
Selection criteria of plot The selection criteria of the residential plot vary from person to person but some of the factors are quite common to the majority of buyers and a group of factors influence the decision of the buyers. It is observed from the analysis that, while searching and selecting the plot, the first and most important criterion is good location (availability of infrastructural facilities), followed by a good price for the land, proximity to the workplace and close to the city center. The second level of criteria (minor), in order of importance are: whether the land is good for commercial use, availability of public transport, whether it is within the same area as close friends and whether there are good community facilities. The decision making process for the selection of the plot is presented in a flow diagram (Figure 5) for better understanding.
Method and mode of money payment for the plot
1Person engaged in land survey and measurement.
From the study, it is observed that approximately one third of the total buyers paid the entire amount in advance before registration of the land, followed by one fifth of the buyers who paid a partial advance and the full balance amount either on the day or after registration of land. Half of the buyers paid by instalments. The average number of instalments per buyer is more than three. As far as the mode of payment is concerned, 86
91
Plot acquisition and self-build housing. K C Rath and J K Routray
[
Major Criteria
[
I
Minor Criteria
[
[
i. Good Locality
~
i 37'5% [5. Good for CommercialUse l
~ 46 6%
1
] of Public [ , 6. Availability I TransportFacility I I~ 23'3%1 I [ . I Land/Plot ] 17. Residence of Close Friends [ 13. Nearness to Work Place~45.0% Selection ] 208%1 ,withinthesameL°cality I I 2. Reasonable Price
]
t 4"Cl°set° the CityCentre ] 41"6% Figure 5. Decision making process for land selection.
I I I
t
9.1% 7.5%
[8. Good CommunityFacilities[ [
]
9. Good for Real Estate [
Cash
~--
Cli~ its/ Bank Draft L,,._] [- [ Pote Ltia]
.l
u E_JI
Through [ Bank Account]
Figure 6. Mode of payment.
--- MajorChannel Minor Channel
respondents (71.7%) paid cash, 15.8% paid by bank draft and the rest settled the payment through the bank account as instructed before the land transaction. The owners received payment directly from half of the clients, through a broker from about a quarter of the clients, and the remaining quarter paid through close friends and relatives of the owners. The mode of payment by the clients to the land owners is presented in Figure 6.
Amount and source o f finance A potential buyer usually arranges money from many different sources-General Provident Fund (GPF)/Contributory Provident Fund (CPF), bank loan, loan from relatives and colleagues, sometimes disposing parental property, selling some ornaments and jewellery, and finally adding money from their own limited savings. More than 65% of the respondents commonly used three sources such as their own source, disposing parental property and ornaments, and another 35-45% of respondents have depended on relatives and colleagues, GPF/CPF and bank loans. In terms of the average amount received per source, it is important to note that the bank is the major source of finance, following by relatives, colleagues and
92
Plot acquisition and selJ:build housing: K C Rath and J K Routray
loans from GPF/CPF. The other important minor sources are disposing of parental property in native rural areas, from their own source from savings and finally by selling ornaments. In the past, availability of house building loans from the commercial banks was neither common nor attractive to the prospective buyers, compared to the present banking situation. In this paragraph, an analysis is made to identify the importance of financial sources and dependency of the buyers in mobilizing finances for buying the plot. The data for each of the cases are separately analyzed by using mean and standard deviation grouping techniques to infer how many buyers use these sources as major sources, depending on the occurrence above the mean level when considered against all the sources for an individual. It is revealed that about 27.5% of the buyers have used their own savings as the major source, followed by a loan from relatives (23.3%), 19.2% mobilized finances from selling parental property, for 17.5% of buyers a bank loan is the major source and 15% used colleagues as a major source of finance and 12.5% are equally dependent on GPF/CPF loans and selling ornaments. Some of the buyers have used more than two sources in securing finance for this purpose. Specifically, 64.2% of buyers have used a single source, 25.8% two and 10% multiple sources.
Process of land transfer From the survey, it is clear that 75% of respondents (89) obtained full transfer of land. Land was transferred to 12.5% of respondents conditionally, subject to full payment of the assessed money at a later period and the rest of the buyers received the land conditionally for a limited period. Before the transfer of the land, about 41% constituted single ownership and 28% double ownership of land. The remaining plots (31%) were owned by three members and in some cases by more than three. At present, 49% of the respondents own plots in their own names, 38% in the names of their wives, 7% and 6% in the names of their sons and daughters, respectively. This is a very common practice and also an important means to procure more than one plot within the area of the BDA. Legally it is not permitted to have two pieces of land, either in one's own name or in one's spouse name as per the present regulation of the State Government. On the day of land registration the percentage of buyers' physical presence in the registration office was about 86.6% and the rest of the land was registered in absentia through a wife, in-laws, father and brother, friends and colleagues. The buyers do not usually take the assistance of lawyers in the matters of land registration.
Assessment of organizations as supportive in the process of land transaction The organizations are placed below in descending order in terms of relevance and user-friendliness in making the availability of plots to buyers, perceived as useful to the buyers: (1) (2) (3) (4) (5)
the broker; Land Registration Office; Municipality Office; Tahsil Office (land records); and Local Planning Office (BDA).
93
Plot acquisition and self-build housing. K C Rath and J K Routray
Similarly, the factors explaining supportiveness of agencies/organizations are also ranked as per the proportion of response to expected response and it is found that buyers give priority as follows: First:
priority for the agency which provides land related documents (ownership/encrumbance/tax/permissible use certificate, etc.); Second: priority to the organizations which are authentic in providing relevant information; Third: those who are punctual--solves problem instantly; Fourth: those who are influential; Fifth: those who are reliable; those who neither cheat nor engage in fraudulent dealings; and Sixth: those who provide a smooth and easy service. Last:
Land development and construction of housing units There are different aspects of infrastructural facility development which support and contribute to land development. The construction of the housing unit is the final product over the developed plot. It is important to know about the condition of the plot at the time of purchasing. Out of 120 cases, only 35 (29%) plots were partially serviced and the rest of the plots were just subdivided and demarcated for the purpose of sale. Of those which were categorized as developed, about 83% of them had access roads and 71% of plots were filled with sand and levelled. In the case of 66% of plots, they had boundary walls and only 31% of plots were serviced with drainage, sewage and power supply lines. It is also observed from the survey that pucka houses which are constructed over 82 plots constitute 68.3% of the total plots, followed by semi-pucka (25%) and k a c h h a z houses (only 6.7%). As far as the type of house is concerned, single storeyed buildings constitute 46.7%, followed by double storeyed (40.0%) and three storeyed buildings share only 13.3% of the total samples. The pattern in general is row housing (33.3%), followed by bundaglow type (27.5%), and the rest of the houses are basically either detached or semi-detached. The majority of the respondents (59.1%) designed their houses with the help of known engineers and architects, 29.1% of them have taken the assistance of government architects and the staff of the BDA and others managed by utilizing professional services of the consultants. It is interesting to note that only 30% of the respondents are aware of the regulations and acts of the Town Planning and Development Authority. However, the majority of them (115), about 96%, have taken approval of the house building plans from the BDA. About 7.8% of the total approved cases were charged fines because of the deviation from the approved plan while constructing the houses. Similarly, in a quarter of the total cases, approval was refused in the first instance as they could not meet the requirements of the planning standards, such as width and access of the approach road, specified requirement of open space on all sides of the plot, etc.
Time interval between plot purchasing and plan approval and construction
2 Mud-wall and thatched roof house.
94
The time gap between plot purchasing and construction of the house has implications on the planning and development control mechanism of the BDA (Table 2). It is quite revealing that about 18% of the buyers took
Plot acquisition and self-build housing." K C Rath and J K Routray Table 2. Time interval between plot purchasing and plan approval and construction. After purchase Completion of house construction work
Possession and plan approval No. After 1 year After 2 years After 3 years After 4 years After 5 years After 6 years After 7 years After 8 years After 9 years After 10 years More than 10 years Total
22 11 13 8 5 14 5 6 3 10 23 120
% 18.3 9.2 10.8 6.7 4.1 11.7 4.2 5.0 2.5 8.3 19.2 100
Cu %
No.
18.3 27.5 38.3 45.0 49.1 60.8 65.0 70.0 72.5 80.8 100.0
30 15 20 13 6 11 4 1 8 7 5
--
120
% 25.0 12.5 16.7 10.8 5.0 9.2 3.3 0.8 6.7 5.8 4.2 100
Cu % 25.0 37.5 54.2 65.0 70.0 79.2 82.5 83.3 90.0 95.8 100.0 --
Source: Field Survey, 1994.
possession of the land and made necessary steps for the approval of the building plans after one year of purchase. Similarly, a quite significant number of buyers, 19.2% of the total sample, took possession of land and approved the building plans after more than 10 years of land purchasing. Overall, about 50% of the buyers took possession after 5 years and simultaneously approved the plan by the BDA. When it is compared against the construction activities, it is interestingly noted that after 5 years, about 70% of the buyers have finished the completion of building construction work, thus, 20% of the buyers have constructed houses initially without approving the plans. The gap between approved and actual constructions continued during the first 5 years of land possession and plan approval (Table 2). The land development and construction of houses are very slow because of unserviced land, coupled with non-availability of required finance for the construction of houses/buildings. This is true in the case of more than 30% of the total buyers. As reported from the survey, it could be observed that a higher percentage of plots (42.5%) remained vacant for a period of 10 to 25 years between the date of purchase and the date of physical occupation, either directly by the buyer or by the tenants under rental condition. It is also revealed from the analysis that 57% of the respondents are the buyer occupants and the rest of the plots are used for rental purposes. This is because of the lack of access roads, basic and municipal services and even community facilities in the vicinity. In other words, the provision of infrastructure facilities and basic services are not concomitant with the sale of plots. This is very common in the private land market. Even if the plots are vacant and land value appreciates very quickly, increases year after year and imbalances the speculative land market. It is also again difficult to monitor and control the land economic dynamics by the Development Authority. On some occasions the vacant plots are the source of many informal activities, not in conformity with the specified urban land use under the zoning regulation.
Conclusion The urban development planning process does not keep pace with the land development. The limited information about the land market monopolized 95
Plot acquisition and self-build housing. K C Rath and J K Routray
by the land brokers constrain the guided, controlled and planned urban development. In searching plots, the buyers have used friends and relatives as the important source of information, assisted by the local land brokers. A large majority have taken more than two chances to buy a piece of land, subjected to varieties of fraudulent dealings while transacting the land. The average number of fraudulent dealings per buyer indicates a higher risk in the land market. More than 50% of the buyers have ignored to verify the land record and other particulars. However, about three quarters of the buyers have frequently visited the site before taking a decision for land registration. The respondents have not followed all the verification steps sequentially and systematically. As a result, they were exposed to cheating and fraudulent dealings. The multicriteria used for selecting a plot are good locality, reasonable price of the land, proximity to the workplace and to the city centre, placed in descending order of priority. The majority of buyers have paid the full amount of money in cash directly to the owners. However, less than one third of the buyers have paid through the broker, or friends and relatives by instalment. The common sources of arranging finance for the land are own sources (savings etc.), disposing of parental landed property in rural areas, and selling jewellery and ornaments. As far as the amount contributed by source is concerned, bank finance is the major source, followed by relatives, colleagues and loans from GPF/CPF. Regardless of fraudulent dealings and other inconveniences, the land broker is considered to be more supportive and dependable, due to lack of other reliable and competing organizations involved in the process of land transaction. The agency which provides land related documents is ranked first, followed by authenticity of i0formation, punctuality, influence, reliability, no cheating and those who provide a smooth and easy service. The land price has gone up 30 times between 1955 and 1991. It is estimated that the current land price will go up 3.6 times by 2001. As the sample area constitutes part of the growing central district of the city, the per acre price would be about 3.7 million rupees. Most of the plots in this case are only subdivided and demarcated but without necessary infrastructural facilities and services. It is very much evident that one fifth of the total buyers have constructed without approving the plans, engaged in a long period of construction activities and there is, conspicuously, a large period of time between the period of land purchase, construction and final occupation.
Policy implication and recommendations L a n d price
As the land price is increasing rapidly, there is a need to break the monopoly of the private land holders with the implementation of the existing land ceiling act, by introducing rental land and housing schemes through public and private institutions and imposing land registration tax, both on the part of the buyers and sellers. The Development Authority (BDA) should reinforce the effective land development and management control practices through TP schemes in the areas of rising land demand. Area concentration of infrastructural facifities and development activities to control urban sprawl
The development activities in terms of providing public infrastructure and service facilities should be concentrated by units to consolidate and control 96
Plot acquisition and self-build housing: K C Rath and J K Routray
urban sprawl and also land price. The ongoing activities of house construction either by the Orissa State Housing Board or Bhubaneswar Development Authority are done very scatteredly. These new housing colonies have consequences on higher infrastructure cost and, at the same time, they have created a speculative land market around the new colonies, thus indirectly contributing to an increasing land price. Needs for revision o f town planning regulation
There is a need to revise the existing planning standards to standardize the plot size further and to enforce planning regulations on the part of the builders to overcome the long time of construction and to control the problems related to constructions without planning approval by the BDA.
References Acharya, B. P. (1989) Equity in plot reconstruction schemes: a tale of three Indian cities. Third World Planning Review 11, 71. Archer, R. W. (1992) An outline urban land development policy for developing countries in Asia. Habitat International 16, 66. Arkin, H. and Cotton, R. R. (1963) Tables for Statisticians. Barnes and Noble Books, New York. Billand, C. J. (1993) Private sector participation in land development: guidelines for increasing cooperation between local government and private developers. Habitat International 17, 53. Gangaje, R. K. (1992) Administration of farmland transfer in urban fringes: lessons from Maharashtra, India. Land Use Policy 9, 273. Misra, B. (1986) Urban development policies in India: focus on land management. In Urban Development Policies and Programs: Focus on Land Management, ed. H. Nagamine, p. 1. UNCRD, Nagoya, Japan. Misra, B. (1990) A comparative study of urban land management (ULM) in selected developing Asian countries and Japan. Economic Research 93, p. 7. November, Economic Research Center, Nagoya University, Nagoya, Japan. Sahoo, N. N. (1994) Slum resettlements and urban development in a planned new town: Bhubaneswar a case study. Ph.D. thesis, Department of Geography, Utkal University, Vanivihar, Bhubaneswar, India.
97