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Monday,
January 6, 2003, Chandigarh, India  
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REAL
ESTATE/JALANDHAR
Smart
Kid from ICICI
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Revised
return
Airlines
not liable for delays due to fog
Q
3 results to set the trend
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REAL
ESTATE/JALANDHAR
After having remained in the cold for the past about five years, the real estate business has started looking up in Jalandhar and the surrounding areas, thanks to the increasing involvement of NRIs, which, unlike in other parts of the North, have always been the biggest factor in determination of the real estate prices in the Doaba region of Punjab. As a business, the real estate had started nosediving in 1996-97 due to a sudden and large scale sale and purchase by speculative players, who had invested so much in anticipation of big money that they failed to find buyers who could afford to pay the artificially inflated prices for another about five years, resulting in an almost complete stoppage of sale-purchase of the real estate. Another factor, which contributed a lot to the grim situation was a voluntary disclosure of money scheme, launched by the government about four years ago for people who wanted to declare their assets and income. This again led to a sudden pumping of a lot of black money in the real estate business, resulting in an artificial but a shortlived hike in prices. The situation, as far as the Doaba region in general and Jalandhar city in particular, remained same till about last year, when NRIs money started pouring in through legal and illegal channels to bail out the business out of the long-standing crisis. Interestingly, though the NRIs money has pushed the business back on rails, but the real estate prices have remained almost the same as these were about four or five years back. As NRIs were allowed to purchase only urban property, the fate of the agricultural land still remained unchanged with only a few buyers around. The major factor, which forced NRIs to invest back in Punjab, was a sense of insecurity among them, particularly, after the hate wave, which swept through the USA and other western countries in the post-September 11 period. “Yes, things have started showing up. Atleast the business has picked up after the process remained freezed for about five years. Though there is no visible hike in the real estate prices as of now, yet people, particularly NRIs, have started taking interest, which make us believe that good days are ahead and that the lost glory of early nineties will be regained,” says, Mr Anil Chopra, the Chairman of the Punjab Property Dealers and Colonisers’ Association. Enquiries revealed that NRIs and other buyers preferred to buy property in the city in place of a large number of upcoming localities in the outskirts though the prices are relatively very high in the city areas. If a marla of land can be purchased for about Rs 2 lakh in the city, the same can be purchased between Rs 40,000 to Rs 50,000 in any of the localities on the city outskirts. The business starts showing up in winters as a large of NRIS come home during this time. “The things can brighten up if the government removes the ban on purchase of agricultural property by NRIs and if there could be more flexible and low interest loan schemes for the middle class,” feels Mr Chopra. Enquiries also revealed that one of the major reasons behind the sudden brightening up of the real estate business in the Doaba region is the latest fad among NRIs to build and sell big “kothis” at a handsome premium and an increased investment of black money, which has always been a big real estate price determination factor. It is also found that a common factor among NRIs and a common buyer was that all of them wanted to buy a plot, a flat or a “kothi” in PUDA’ approved colonies, no matter even if the prices are double as compared to a large number of illegal colonies. This was evident from a large number of built houses which were waiting for buyers in similar but illegal colonies on the Mithapur road the Nakodar road and on the Kapurthala road. Though at one time the Mithapur and Nakodar road was fast growing, but nowadays it was the Kapurthala road, where a number of prestigious projects like science city, Centre for Renewable Energy and the PTU campus are underway. “The difference between five years ago and now is that it is the real buyer now who is coming forward. About five years back, it was the speculative buyer, who used to purchase property for profit purposes only,” says Mr Bhupinder Singh Bhinda, the president of the Jalandhar Property Dealers Association. He said the real estate business was heading for a boom despite its current slow pace. Enquiries
further revealed that ‘injudicious’ fixation of minimum prices of registration deeds by the district administration has created problems as far as sale of purchase of property is concerned in some parts of the city. Property dealers maintained that though the fixed minimum prices are too high, in actual, property is selling at much lower prices. For an example, if the minimum fixed price was Rs 35,000 per marla in the Mithapur area, in reality, plots are selling at a much lower price of Rs 25,000 per marla. This has forced people to avoid going in for proper registration of deeds and instead they are materialising the deals on basis of “Mukhtiarnamas”. Same was the case with the congested areas like Basti Sheikh, Model House and Basti Nau. An interesting case, showcasing the lack of interest of people towards properties with high price tags is that of the commercial shopping complex in the Medical College area which was put to auction by PUDA recently. It could find only two buyers for two of the 32 SCOs. Trade pundits have maintained that a major factor responsible for prolonged slump is predicament of the agriculture sector and non-initiation of any new housing schemes for potential bulk buyers, including the middle and lower-middle class, by the state government during the past five years. This has led to a situation where an average employee or a person belonging to the middle or lower middle class cannot afford to even dream about setting his own house on one hand and putting brakes to the real estate business on the other. “There is no realistic, feasible and flexible loan scheme by the state government. All one can do is to go to a bank, pass through a number of formalities and end up paying high interest amounts if one want to set-up a house. The process is so cumbersome that generally people end up settling up in a rented house despite knowing that what they were paying as a rent could be paid as an instalment for a new house,” said Avinash Kumar, a resident of Adarsh Nagar locality. Similarly, the lack of growth of group housing schemes in the city unlike in Ludhiana and Mohali, too was responsible for the almost non-starrer performance of the trade during past five years even as trade pundits were very optimistic about future, particularly, if the interest being shown by the NRIs remained stable during next at least five years.
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Smart Kid from ICICI LUDHIANA:
No parent can consider his or her financial planning complete unless due care is taken to secure a sound financial future of the children till the time they become capable of taking care of themselves financially. There are several ways of ensuring that the child has enough money for education and other needs, if ill luck were to take away their chaperon. Insurance companies have come out with different schemes that can help parents plan future security for their kin.
ICICI Pru Smart Kid ICICI Prudential that was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA) has introduced an insurance cover for children as it has become critical to plan for the child’s future. The ICICI Pru Smart Kid is designed keeping in mind the ever-increasing competition, the need for the best possible education and the escalating costs of the same.
Kids needs is the prime aim The ICICI Pru Smart Kid is a flexible, easily customised life insurance policy designed to ensure that money reaches the child at those junctures in life when it is needed the most. A parent can buy ICICI Pru’s Smart Kid policy when the child is between the ages of 0-12 years. This policy aims at combining the dual benefits of savings and protection.
Allows flexibility with a range of benefits The policy is flexible, allowing the parent to specify the age of the child at which the policy will mature. The maturity payments can be coincided to be made at significant moments in the child’s education such as completion of secondary and higher secondary, graduation and post graduation. The payments can be received by the child in increasing proportions of the sum assured — in recognition that the cost of education increases as one specialises.
Immediate payment in case of death The Smart Kid offers to pays the sum assured immediately, in the event of death of the life assured - assisting the family to meet the unforeseen expenses that it might have to incur. In case of the death of the life assured (the parent), all future premia are waived. Further, the payments for the child’s education will continue, despite the death of the life assured. An optional Income Benefit rider pays 10 per cent of the sum assured annually, in the event of the parent’s (life assured) death (till the maturity of the policy). While an optional accident and disability benefit rider provides cover against death or disability due to an accident, ensuring regular income for the next 10 years or till maturity of the policy.
How it works To explain how the policy works, take for example a child whose parents buy a Smart Kid policy for rupees two lakhs when the child is at 5 years old and the policy period is 17 years till the child attains age of 22 years. After completion of 10 years at child’s age of 15, the child will receive Rs 40,000 (20 per cent) of the maturity value that can be used for making preparation for joining a professional course. At age 17, the child will receive another Rs 50,000 (25 per cent) that can be used towards admission fee for graduation. At age 20 and 22, the child again receives Rs 50,000 and Rs 60,000 (25 and 30 per cent).
Earlier the better The sooner the policy is taken the better, as parents with smaller ages have to pay lesser annual premiums. For example of a Smart Kid policy for Rs one lakh is taken by a person when he is 30 years old for a child aged 2, the premium will work out to less than Rs 500 per month or Rs 6,000 annually. For the same policy when taken for 10 years by a parent aged 40, the premium will work out to a little over Rs 13,000 annually. To keep in mind the compounding effect of money, the soon the policy is taken the better.
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by R.N. Lakhotia Revised return Q: It is stated that I had already filed the return for 2002-2003. But one bank had deducted T.D.S. in March, 2002, and did not inform me. In Sept. 2002 when I had gone there for renewal, I came to know about it. Please advise me whether I can show in the return for 2003-2004 and claim the refund in that return. This whole interest is within the limit under section 80-L. — Bhupinder Singh, Ludhiana Ans: You may file your revised Income- Tax return for the Assessment Year 2002-2003 and claim therein the refund in respect of tax deducted at source on bank interest.
Interest on FDRs Q: I am a Central Government Servant working in Chandigarh having gross annual income from my salary Rs. 1,11,659 for the assessment year 2002-2003 and tax on total income stands to Rs. 5332. As my saving under Section 88 stands to Rs. 29,388 and tax rebate on my saving comes to Rs. 5878. Thus tax payable on my income is Nil. Secondly, I deposited some amount with the Bank in the shape of FDRs and the interest accrued on FDRs stands to Rs. 8795. And the Bank has deducted TDS amounting to Rs. 897 on my income from interest. My question is that, as my tax payable on salary income is Nil, can I claim refund of Rs. 897 from Tax Authority while filing my Income Tax return on Form No. 3 (Saral). If yes, how? — Sukesh Kumar, Panchkula Ans: You can file your Income-tax return either in Form No. 3 or in Form No. 2D. In the said income-tax return, you may show the accrued interest on bank FDRs so also the tax deducted at source. You can get refund of Income-tax deducted at source because the tax payable on the basis of your return is nil.
Housing loan Q:
I became member of a Group Housing Society in September, 1998, for which I took loan from a bank in the same month. The flat was allotted in October, 2000.Now I have sold the flat in July 2002. I have taken income tax rebate on interest on Housing Loan, and on principal amount also. If I buy another house with all the sale amount and additional loan, I have to return the amount of income tax rebate already taken. — S. Goyal, Panchkula Ans: On the facts stated by you, the profit arising to you on selling your flat would be short-term capital gain because you have held the asset namely flat for less than three years. Under the provisions of Income-tax law, you have not to return the amount of Income-tax rebate enjoyed by you. However, if you buy another house you can independently enjoy tax benefit on account of interest payment as also tax rebate for repayment of loan, etc. |
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by Pushpa Girimaji Airlines not liable for delays due to fog As dense fog and poor visibility disrupt air transport services and cause delays and even cancellation of flights, airlines throw up their hands and remove punctuality, at least temporarily, from the list of norms that determine quality of service. Even Air Sahara, which came forward with the offer of “If we delay, we pay” announced its temporary suspension. Passengers who are grounded at airport lounges waiting for the flights to take off may not be able to get compensation for delayed flights even through consumer courts, but they can certainly haul up air transporters who fail to inform them of delayed flights or offer even minimum courtesy required to be extended to stranded passengers. In other words, during the winter, the quality of service provided by an airline is also determined by the way it treats its passengers affected by flight delays or cancellations. And this includes prompt, timely and correct information on flight delays, provision of food and water to waiting passengers, making available medical or para-medical services to passengers who may be unwell or require emergency medical treatment and hotel bookings for those stranded overnight or for long periods. Of course consumer who pays a steep price for an air ticket is perfectly justified in feeling that he or she ought to be compensated for any delay in the service too. But unfortunately, consumers have not been very successful in this effort. In one of the earliest cases filed on the subject, the National Consumer Disputes Redressal Commission pointed to two factors that may well defeat such claims of passengers: While one of them was the immunity from liability for delay in carriage of passengers or baggage provided under the Non- International Carriage (passenger and Baggage) Regulations, the other was delay caused by factors beyond the control of the service provider, such as fog and inclement weather. According to the Commission, since the condition that the airline would not be liable for delays was printed on the jacket of the tickets issued to passengers as well, it formed a part of the contract of carriage of the airline with the passenger. However to what extent this provision operated to defeat a legitimate claim for damages in a case where delay was caused on account of gross negligence was a matter not called upon to examine in the present case, the Commission said. Under the Consumer Protection Act, to get compensation for loss or injury caused on account of a deficient service, consumer has to prove that such deficient service was the result of negligence by the service provider. So in cases of delayed flights too, consumer has to prove that the delay was the result of the negligence of the air carrier. Pointing out this, the Commission said the mere fact that a flight is operated late will not ipso facto render the airline liable for payment of compensation to the
passengers. To claim compensation under the Act, the complainant has to prove that loss or injury was caused as a result of the negligence of the airline. Flights may be delayed due to poor visibility in the airfield, bird hits, tyre burst while landing or take off, sudden strike by any crucial section of airline staff, all of which may be factors beyond the control of the airline. And in such cases, delay cannot ordinary be attributed to negligence on the part of the airlines, the Commission said. However, in the case of Station Manager, Indian Airlines vs BB Das, even though consumer court did not allow any compensation for flight delay, it held the services of the airline to be deficient in so far as its attitude to the stranded passengers was concerned. And for this, the airline was liable to pay the consumer compensation, the Commission said. It also pointed out that the immunity granted under the Non-International Carriage (Passenger and baggage) Regulations could not absolve officers of failing to show minimum courtesy towards the passengers and informing them about the flight delay. Holding this to be negligent service, it awarded Rs 2,000 to the passenger. However, I must point out here that in both cases, the attempt was to hold only the airline responsible for delays. Where delays and cancellations are caused on account of poor visibility, consumers should haul up, in addition, the Ministry of Civil Aviation and the Airports Authority of India for failing to provide adequate infrastructure to overcome poor visibility in foggy weather conditions. In an age where communication and navigational facilities are highly advanced, it is ridiculous to describe delays caused by fog as 'circumstances beyond the control of the airline or the airport authorities”. Since safety and efficiency are essential pre-requisites of any transportation system, the service provider is expected to provide all necessary facilities to overcome problems posed by inclement weather. Failure to do so would be negligence. |
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Q 3 results to set the trend Lacklustre trading with low volumes was the highlight of trading during the first week of the New Year. The 30-share Bombay Stock Exchange Sensitive Index shed 40.46 points to 3,357.54 for the week on profit booking by institutions and investors. The National Stock Exchange S&P CNX Nifty shed 8.80 points to close at 1,089.60. Next week is expected to be action-packed as the frontline IT companies are then expected to come out with their third-quarter results. If the second-quarter results were any indication, the IT companies are expected to meet the analysts’ expectations. This may lead to another rally in the IT stocks. Other sectors such as steel, banking and pharma are also expected to do well.
Zeetele Zeetele was in demand on the rumours that it may find a place in the expanded list of stocks for the derivative segment of the bourses. Increased viewership of the flagship channel Zee TV following its revamping also induced some life into the stock. The stock gained 4.5 per cent for the week to close at Rs 101.75. Zee also gained ground on expectations of better results after the company hiked subscription charges. The scrip for the time being seems to be in bull grip, but long term investors must wait for the third quarters before adding it to their portfolio.
Ranbaxy Ranbaxy has had a dream run on the bourses during the last year and a half. The scrip has gained more than 120 per cent since June 2001 (after adjusting for bonus). If the company’s past performance is anything to go by, it seems that there is still some steam left in the scrip. The latest rise follows reports that the company has filed a new drug application (NDA) for ofloxacin OD with the Food and Drug Administration (USFDA) of the USA. The generic drug ofloxacin OD is a product from the novel drug delivery system (NDDS) of Ranbaxy.
Tisco Steel stocks gained ground during the week on reports that steel majors like Tisco, Sail and Vizag Steel hiked prices of both long and flat steel products by Rs 500-700 per tonne on January 1, 2003. Steel major Tisco is expected to churn out strong performance for the third quarter, following the incessant rise in steel prices over the past year. Long-term investors can buy Tisco as global steel prices are expected to firm up following the scraping of subsidies.
Coming fortnight Next week is expected to be volatile when the companies start declaring their third-quarter results. Results from software major Infosys is going to set the trend for the IT companies in general. Strong performance from Infosys will spur all round buying in IT stocks, whereas failure of the company’s results to meet the analyst expectations will lead to this sector’s bloodbath on the bourses. The developments on the US-Iraq front need also to be tracked. Technically, the sensex is on a weak wicket as it has broken out of the rising wedge on the downside and is headed for lower levels. The immediate support for the Sensex will be at the 20DSMA at 3341. In case the Sensex breaks below 3341, the market could slip below the 3300 level. |
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Inflation
rises New Delhi, January 5 |
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Chandigarh
nodal point for new products Chandigarh, January 5 “People in this city know how to live a full life. Their outlook is global and they do not compromise on quality. It is why most of major national and multinational companies are using Chandigarh for launching their products,” says Mr Shiv Kumar, Country Manager, Consumer Goods Division of Swarovski, an Austrian family company, which has been for more than a hundred years in the trade of manufacture of cut crystals, crystal jewellery stones and crystalline semi-finished goods for fashion, lighting and other things. His views are corroborated by Capt (Ms) Khanna of Indigo Events and Exhibitions, a company which is bringing the north’s first ever expo on weddings — the Vivah - to the city later this month. “Yes, I agree with both Mr Shiv Kumar and Captain (Ms) M. Khanna,” says Mr Kulbir Ahuja, Senior Vice-President , Sales and Marketing, Playwin Infravest, who was also in city to talk about the launch of Maha Lotto, the biggest lottery ever to be introduced in India. Unfortunately, online lottery is not permitted here as Chandigarh does not have its own State lottery. Chandigarh is “show case” of both Punjab and
Haryana. Most of the MNCs found that for launching any product or a test trial, Chandigarh was the ideal place as it was frequented by people from as far as
Amritsar, Jalandhar, Ludhiana, Patiala, Bathinda, Ambala, Yamunanagar, Karnal, Solan and
Shimla.This finding is corroborated by the crowd the city joints had for the New Year eve functions. They all were in the city on Saturday for promotion of their products. They doubt it very much that “Chandigarh is only a city of employees with limited purchasing power” “No, no, it cannot be true,” they maintain holding that like the city, Chandigarhians are modern, outlooking, adventurous, ready to invest and risk and status conscious. “They must have the best,” is perhaps the catch word that beckons all marketing companies to come here first then look elsewhere in rest of Punjab, Haryana and Himachal Pradesh. “We are looking at Ludhiana as our next potential centre but not immediately,” says Mr Shiv Kumar claiming that when they put up an exclusive studio of cut crystal items from Swarovski next week, it will be first city outside eight metros throughout the length and breadth of the country. “We will provide the world range here in almost everything we manufacture at our Wattens in Tyrol unit in Austria. We do not say it is our monopoly business but we have no real competitor in cut crystal gift articles, collectible from faceted crystals and lighting cut crystal products besides fashion jewellery,” adds Mr Shiv Kumar holding that cut crystal jewellery is both complementary and supplementary to diamond jewellery. Captain (Ms) Khanna, who is many personalities rolled into one — a judoka, a flyer and an event management specialist — says that main purpose of choosing Chandigarh for Vivah was to give this man made city a “soul”. “Never before so many designers, consultants and others have been together under one roof for such an event. Punjabis plan and love to organise their weddings well. It is why we are here. We hope to make it an annual event bringing each time new innovations and ideas in the wedding industry, which perhaps has become one of the biggest industry in this part of the country,” says Captain Khanna. The vivah expo will be held here from January 9 to 12. Mr Kulbir Ahuja says that Indian lottery market is worth Rs 50,000 crore — 28,000 crore even if grey market is excluded and this comes from only 14 States which have state lotteries. On an average two crore people buy lottery tickets everyday and try their luck in 1,000 draws that are held each day. “Paper lotteries are bought by people from lower middle class and without the knowledge of other members of the family. On the other hand online lotteries with 4800 terminals in 14 states, have already crossed a turnover of Rs 450 cr in first nine months. We target to make it 1,000 crore with 10,000 terminals by end of March this year. Our biggest launch is Maha Lotto with a guaranteed jackpot of Rs 50 crore,” says Mr Ahuja holding that Playwin has already made both the bids for online lottery being proposed by the Punjab Government. “We have a credible, transparent and most modern technology with technical and commercial expertise coming from the US-based International Lottery and Totalizator Systems. We have already contributed Rs 90 cr to state governments which is being spent towards infrastructure development and social projects. “We have already created more than 76 lakh winners through online lottery in India and declared Rs 190 crore prize money to winners with 20 jackpot winners and made 12 crorepatis and more than 900 lakhpatis,” adds Mr Ahuja hoping that time will come soon when people could play online lottery from their PCs. “Lottery is recession free business and it has a tremendous potential to grow. We hope to have 30,000 terminals by end of 2005 with a turnover of Rs 5,000 crore,” adds Mr
Ahuja.
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