Real BUZZ
Investors warm up to Kasauli

With the High Court finally lifting restrictions on construction exceeding Rs 25 lakh in the Kasauli Planning Area, comprising Kasauli and 35 rural settlements lying in its precincts, scores of investors have finally heaved a sigh of relief. The restrictions, which were lifted on October 28 , have brought cheer to the realty scene in the area.

The relief follows the notification of a new master plan for the area where stress has been laid on incorporating environment friendly measures and regulating haphazard constructions as the area was bereft of adequate basic amenities.

“The lifting of the ban on constructions exceeding Rs 25 lakh has led to a visible hike in the land prices with prices increasing by a lakh or two per biswa on the coveted Garkhal-Jagjitnagar Road, Kimmughat-Chakki-Ka-Mor Road, Jangeshu-Parwanoo Road and even on Dharampur-Kasauli Road”, assessed a property dealer. The land prices on Kimmughat-Chakki-Ka-Mor Road have shot up from Rs two lakh per biswa a couple of months ago to Rs three lakh per biswa now. 

There has also been a steep increase in the demand for small plots for constructing bungalows and summerhouses. Most of the prospective buyers are non-Himachalis comprising IT professionals, bureaucrats and businessmen from the plains. Since large chunks of land are virtually unavailable the investors are looking for either constructed flats or bungalows. Scores are queries are being received for residential units priced between Rs 45 to 60 lakh, while the bungalows priced over Rs 75 lakh, too, have generated a good response from buyers from Delhi, nearby Punjab areas and even from as far as Goa. Even major real estate players like the DLF group have also started operations for housing project near Jagjitnagar road.

Thus with the road being cleared for investors, the onus is on the revenue authorities to scrutinise each case judiciously as there would be a sharp rise in the number of applications seeking permission under Section 118 of the HP Land Reforms and Tenancy Act, 1972, which was mandatory for the non-Himachalis wanting to buy property in the state.

The Deputy Commissioner, Dr Amandeep Garg said, “Measures like assessing water and power availability prior to recommending the cases to the state government will help in keeping a check on haphazard proliferation of ventures as water was a scare commodity in the area. All cases would be subject to rigorous scrutiny vis-à-vis environmental issues to ensure its protection.”

The area had seen mushrooming of small and big hotels, guesthouses and palatial multi-storeyed buildings over the past 10 years. All this hectic construction activity had not only put a severe burden on the limited natural resources, especially water and power, but the local population too was forced to share the meager resources at its disposal. It was this haphazard commercialization that had led to a whopping 43.17 per cent population increase in the 26 rural habitations in the last decade. This was an indication enough of how little regulation had been in place prior to the High Court ban on constructions exceeding Rs 25 lakh.

The most significant concern was the limited availability of water despite a number of schemes. It was argued that all the schemes had been designed for a nominal population growth in the rural settlements and some floating population. This appeared to be the single largest factor in discouraging scores of commercial ventures. The IPH department had asserted that it could make water available only for a limited population hence the need to restrict growth was necessitated, opined officials of TCP department.

The ban on constructions had been imposed in December 2007 after an environmentalist, Baljit Malik, had filed a CWPIL highlighting unabated commercialisation that was damaging the fragile hill ecology in the area. The court had then directed the government to devise a master plan addressing environmental concerns. Reacting to the new master plan, a revenue official, however, said, “While the series of measures listed by the Town and Country Planning (TCP) Department have endeavoured to regulate the large scale commercialisation of the pristine hill station, it remains to be seen how well these measures would be regulated and adopted in letter and spirit.”

As per the new guidelines crass commercialisation, which cuts indiscriminately into the green cover and steep cutting of the hill slopes facing elevations of more than 45 degree would be strictly disallowed. Even cutting of trees on private land would be checked now. While the measure was supposed to check the flattening of hill slopes, it would also ensure that the clean and green ambience of the area remained intact.

Haphazard ribbon-shaped development along the roads that leads to congestion would be disallowed. Along with this detailed guidelines have been put in place for apartments — a concept, which was missing earlier.

In addition to this the provision of sloping roofs, which will help promote rainwater harvesting, has also been made mandatory.

Commercial builders as well as public sector enterprises have been directed to use solar energy-based technology to reduce power consumption

When asked how the regulation would be enforced, the Director of TCP, Mr Rajnish Kumar, said, “A structured system of regulation has been put in place which was missing earlier. Besides checking haphazard constructions it would ensure that the area is developed in a planned manner.” Though new tourism ventures have been discouraged in the area, the state tourism department is exploring the possibility of opening a five-star hotel to make its presence felt.

Digitised and transparent
This is going to be the face of property registration system in Delhi soon

The archaic property registration system in Delhi may soon give way to a digitised and transparent mechanism under which genuine owners will be given a unique identification number and title for their properties.

Delhi Lt Governor Tejinder Khanna said the proposed system, being structured on the lines of the one existing in European countries, will stop all fraudulent property transactions as an online database of all genuine properties will be put in place to ensure transparency.

The city government has been working with various stakeholders for the past three years to frame a new legislation to provide a legal framework for granting property titles in the national capital to all property owners and check fraudulent transactions.

Delhi Chief Secretary Rakesh Mehta, who is the brain behind the scheme, said considering the potential of the real estate development in the country and especially in Delhi, it was strongly felt that an electronic system of dealing with immovable properties should be developed. Elaborating on the proposal, Mehta said the government plans to set up a dispute resolution mechanism to ensure speedy disposal of the cases related to property disputes. “The proposed system will ensure creation of a single, secure, electronic and efficient system. It will be made mandatory to get titles for all the properties,” he added.

He said the transparent recording system will reduce litigations dramatically, value of property will go up and larger mortgage finance will be available at competitive interest rate.

The project will improve urban planning and tax collection will also go up substantially which will boost government’s investment capacity to create better infrastructure.

“A state guaranteed title system is the best and is currently followed in many European countries including the UK. It places the responsibility on the state to maintain the property records,” the official said. — PTI

GREEN HOUSE
Fresh look winter blooms
Satish Narula

Agapanthus (Top) and fuchsia are excellent blooming plants that can adorn your garden this winter

When you plant a new introduction, the first bloom generates sufficient interest, but slowly as the flower becomes more common it loses that initial exhilaration of having an exclusive flowering plant. So for those of you who have lost interest in the routine winter flowering plants, time is ripe to try out some new varieties to add that extra punch to your lawn. So this week we bring you some such plants. When you see the accompanying pictures of fuchsia, chinar and agapanthus, do not skip reading this piece thinking that today we are dealing with plants and trees from the temperate regions.

No doubt these plants are usually grown in the hilly regions where temperatures go near or below zero degrees Celsius, but all the pictures that you see here have actually been taken in Chandigarh. And why only Chandigarh, these plants flourish in other areas having a similar kind of climate and falling in the same sub-mountainous range.

This includes areas like Pathankot, Gurdaspur, Hoshiarpur, Ropar, Fatehgarh Sahib, parts of Patiala, Ambala and Yamunanagar. Chinar is the symbol of Kashmir and Kashmiris living in this region feel nostalgic at the mere mention of this tree. A Good Samaritan has planted one such tree in the centre green park of Sector 21, which is growing very well there.

The tree can easily be multiplied by 10-inch-long cuttings that are planted two-third underground, giving a slant cut at the base. Since the tree is deciduous in nature, it sheds leaves in winter and goes to sleep. So winter is the right time to make cuttings. You can grow it in pots; too, for fancy till it is fit to be transferred to ground.

Why I am discussing these plants now is due to the importance of the time when these are either multiplied or planted. The blue flower that you see in the picture is agapanthus. This is usually grown on mid to high hills. It was planted in the bulbous plants section of Chandigarh Botanical Garden in Sarangpur last year. The bulbs were procured from Palampur. These were, however, planted late in the season but they all gave excellent bloom, though late, during the beginning of May. So you can try this out this time.

Fuchsia is another excellent blooming pot plant. There is a wide range of colour combinations available in pure or in contrast. The plant can be multiplied by cuttings and is free blooming. In plains, however, it has to be saved from direct sun and kept at a cool place. It is a perennial bush that thrives in humid conditions. It is, therefore, better to keep it in between a group of other indoor plants.

It likes moisture but not wet feet. So the drainage should be proper. Besides, there are primulas, hydrangeas and cyclamen that can be grown here. And if you find yourself unable to do so, wait till it is time for such plants to flower and then get ready pots and place them in your garden. You are sure to get blooms as the plant has already attained the necessary factor that is responsible for blooming.

Fortnightly Alert

Now when you are through with the planting of winter annuals, this is the time to keep an eye on their growth pattern and health. See for the uneven growth in the bed. If so, correct the bed levels. Also look for weak and yellowing seedlings. Replace them immediately to get uniformity. Look for insects and disease spots. Give a prophylactic spray to check them. For this, you must contact some expert, as the chemicals required to be used for different insects are different.

REALTY BYTES
RESSEX launched

Mumbai: Realty research firm, Liases Foras, launched its Real Estate Sensitivity Index — RESSEX, that will provide structured data and property analysis on the country’s real estate market. RESSEX is a product of detailed micro research, which covers every new real estate development excluding secondary supply and enables the user to view the market potential in both micro and market perspectives in the form of an index.

Besides prices, the index comprises sales, inventory, business turnover and an efficiency index, HDFC Joint Manging Director, Renu Sud Karnad, said while launching the index in Mumbai.

”RESSEX will enable easier understanding of the finer aspects of the dynamics of real estate trends,” Liases Foras’ MD, Pankaj Kapoor, said.

The index covers almost every single primary real estate supply across six major Indian cities — Mumbai Metropolitan Region, Pune, NCR, Bengaluru, Chennai and Hyderabad, he said. — PTI

Rs 200 cr project for Chandigarh

Chandigarh: Godrej Properties Ltd, the real estate arm of the Godrej group, recently announced the setting up of its first commercial project in the northern region in Chandigarh with an estimated investment of Rs 200 crore.

“This will be our first ever commercial project in north. It will involve an investment of Rs 200 crore,” company’s Executive Director Pirojsha Godrej told reporters. Spread over 4.04 acres of land with a development size of 6.80 lakh square feet, the project will offer modern offices and retail spaces. The project is expected to be completed within 30 months of its start of operations. — PTI

TAX TIPS
No exemption for rental income from mobile towers
S.C. Vasudeva

Q Kindly clear my doubts regarding these two points:

n Rental income from house property is 30 per cent exempted from income tax. I want to know whether rental income from mobile towers is also included in this or not

n According to Section 64 if a daughter-in-law is gifted some property then any income from that would be deemed to be the income of transferor. If a woman gets a building as a gift from her mother-in-law and is receiving rent for it then would it deemed to be the income of mother-in-law? If yes, then suppose after three years the total income is Rs 4 lakh, which is to be clubbed, it would be clubbed in only one year or in three years to which it relates. — Rahul

A. The income from house property is taxable in respect of property consisting of any buildings or land appurtenant thereto. The deduction of 30 per cent is allowable in respect of income from property. On the basis of facts in the query, it seems the income in respect of which deduction is sought cannot be accounted for, as income from house property and therefore the deduction of 30 per cent thereon may not be available.

On the basis of facts in the query, the rental income for the year will be clubbed with the years’ income of the mother-in-law.

CGT liability in house sale

Q. My mother, aged about 78 years, possesses a house worth Rs 8-10 lakh, which was purchased by my father (now expired) about 50 years back in her name. Now she wants to sell it. What will be the capital gains tax and income tax liabilities in this case for her and us three brothers? — Chaman Lal

A. The capital gain arising on the sale of the house would be taxable in the hands of your mother since she is the owner thereof. The capital gain would be computed by taking the fair market value of the house as on 01.04.1981 which would be indexed till the year of sale. The amount so determined would be deductible from the sale consideration. The balance amount would be taxable as capital gain.

It is not possible to compute the tax liability in view of the fact that details in respect of the fair market value and the sale consideration have not been indicated in the query.

Sale of agricultural land

Q. I had purchased some agricultural land three years ago, now I want to sell it

and buy a new agricultural land. How much long-term capital gain tax will I have to pay and will I get all the benefits?  —Subhash Gupta

A. In case the agricultural land purchased by you was being used by yourself or your parents for carrying out agricultural activities, then capital gain arising thereon would not be taxable provided (a) another agricultural land is purchased within a period of two years of such sale. (b) the amount of capital gain arising on the sale of earlier agricultural land is utilised for the acquisition of the new agricultural land.

I may add that these provisions are applicable where an agricultural land is situated within the municipal area or is situated within such distance of municipal area as has been notified by the Government in this regard.

Fair Will

Q. My late father willed his self-made property — two shops located in the city — through the registered Will in the name of all his three sons, including myself, to be divided in three equal shares. My eldest brother had expired sometime back and has two sons. Now we two brothers want to transfer two thirds of the property in equal shares in our names in the record of Municipal Corporation as per the registered Will. But my eldest brother’s sons are not cooperating with us, as there is dispute between them. Please advise – (a) Can we transfer two thirds of the property in our names leaving aside one third of our late brother? (b) Is it necessary to get the transfer of property published in the two newspapers before it is finally transferred in our names specially when the Will is registered in the Registrar office at Hoshiarpur? — Krishan Kumar Chadha

A. I presume that the Will provides that each of the three brothers would be entitled to one third share in the properties listed therein. The mutation will therefore be effected in the name of three brothers in the first instance. The legal heirs of the deceased brother will thereafter have to get the mutation done in their name with regard to their one third share. In view thereof I find no reason that your nephews should have any objection with regard to such mutation. The question of cooperation of the sons for such mutation, too, should not be relevant.

Daughter’s right can’t be denied

Q. My father died young; hence the property remained on my grandfather’s name. We are four brothers and one sister. My elder brother got the intakaal in only on the name of four brothers and my (sister) name was not mentioned in the intakaal. Just recently (one month ago) my brothers got the registry done in their names without asking for my consent. Am I entitled to a share in my father/grandfather’s property or not? I got married on my own and hence did not take any dowry. Can I ask for my share or not? I got widowed year after my marriage (was 24 years old then and now I am 50) and did not remarry. Can I ask for a share in these plots and the ancestral house of my grandfather/father? There are no registries of these properties, only the intakaal papers mentioning the names of my four brothers. — Lovely Sandhu

A. Your queries are replied hereunder: As per the provisions of the Hindu Succession Act 1956, you are entitled to a share in your father’s property. On the basis of facts in the query, you would be a legal heir to your grandfather’s property being a daughter of a pre-deceased son.

Presuming that your father had not executed a Will in favour of your four brothers, his property should have been mutated in the name of your brothers and yourself. You should thus be entitled to share in the house property in accordance with the provisions of the aforesaid Act. In case your brothers do not agree to this proposition you may have to take a legal action for division of the house property in the name of five legal heirs.

This being a civil law matter, you should consult a lawyer for the purpose.

Investing capital gains

Q. I sold a plot earlier this year and planned to invest a major portion of the profit in bonds (REC or NHAI). But due to my husband’s illness I could not buy them within the stipulated period of six months (till November 5). Can you please suggest me an alternative following which I can still invest the money in the bonds? — Neha Gupta

A. Section 54EC of the Income-tax Act, 1961, (the Act) dealing with the investment of capital gains in the bonds issued by the Rural Electrification Corporation Limited or National Highway Authority of India does not provide for any extension beyond the period of six months. The only option available for you would be to utilise the amount of net consideration (sale consideration less expenditure incurred wholly and exclusively for the purposes of such sale) in the purchase/construction of a residential house. The specified period for the purchase of a house is one year before or two years after the date of sale and for constructing a house three years after the date of sale. In case you choose to adopt this option, you would be required to deposit the amount of net consideration in a bank account under capital gains scheme. The amount so deposited can then be utilised for the purchase or construction of the house.

HOME DECOR
Fab Fibre
Zafri Mudasser Nofil

Next time don’t dump water hyacinth or banana fibre to the garbage bin dubbing them as waste, they can add to the ambience of your drawing room.

The stalk of water hyacinth, considered as menace to water bodies, has been found to be a very good natural fibre. “It has to be cut and dried and can be woven into baskets, mats, bags, furnitures etc,” says Manoj Das, DGM of North Eastern Development Finance Corporation Ltd (NEDFi).

Water hyacinth grows very fast and destroys the crops and fisheries and had no use except for compost manure on potato crops.

In countries like Indonesia and Thailand, high value furniture, bags and other products are made from it. In India, NEDFi has taken the initiative to use this “so-far-useless” plant for useful means.

“We have hired a trainer to train local artisans in the use of water hyacinth and develop products like dustbins, laundry bags, mats etc.,” Das told PTI. Dried water hyacinth now fetches up to Rs 50 a kg. Another curious addition to NEDFi’s product range is banana bark products. “Yoga mats from banana fibre were a craze at our recent exhibition in Greater Noida,” says Das, adding the response from foreign buyers was even more.

National buyers like Fab India have also shown interest in “kauna” products from Manipur and bamboo products from Tripura. “This hand-crafted water hyacinth furniture caters to the middle-upper class lifestyle in the form of other products like straw boxes, basketry, stationery and photo frames,” says Das. — PTI