Boom time in Reasi

The newfound district status and Jammu-Baramula railway project have made this sleepy town a lucrative real estate proposition, reports
Dinesh Manhotra

Brisk construction is going on in Reasi town. Photo by the writer

Reasi, a sleepy town located 68 km northwest of Jammu, is now witnessing a surge in the prices of property, especially after this administrative unit was granted district status a few months ago. The town and its adjoining areas have a population of about 60,000. Reasi, Ramban, Kishtwar and Samba were granted district status in April, 2007, and ever since then land prices in this area have appreciated a lot. While two years ago the price of one kanal area was Rs 40, 000, today it is around Rs 2 lakh.

Not only the Reasi town, the prices of real estate have also increased manifold in the adjoining localities likes Vijay Pur, Nowabad, Agarbalian, Mari, Granmorh, Geeta Nagar, Tringha and Seela.

The big boost

“Though the land prices had been increasing gradually over the past seven years, these got a big boost after district status was granted to this administrative unit”, observed Vivek Baru, a local resident. According to Baru before the grant of the district status the people of this belt preferred to purchase property either in Udhampur or Jammu.

“After formation of the district, businessmen of this town have started investing in Reasi and expanding their business here by purchasing land and shops”.

Since April, 2007, authorities have been looking for land to construct buildings for different departments. Although the district administration has procured land from the Sheep Husbandry Department to construct a mini secretariat, many departments are still looking for sites to construct their buildings.

As land is not available within the town, residents of the adjoining localities are making the most of this increased demand by increasing prices of their properties. “Not only Reasi, the adjoining localities are also witnessing a real estate boom”, informed Rajiv Singh, a property dealer who started this business just a year back. Mengi, who was earlier running a small tea stall in the outskirts of this town, admitted that he has been earning handsomely in this business due to the ever-increasing demand of the customers.

He informed that besides the local businessmen, inhabitants of remote areas like Mahore, Arnas, Dharmari etc were also keen to invest in Reasi.

As the Reasi town has no scope for further expansion, there is demand for land in the adjoining localities and as a result of this demand prices of real estate have been increasing steadily in some new areas also. Agarbalian was a small village till a year ago, but today there are a number of big buildings in this belt. Similar is the case with Mari, where a government hospital is under construction.

Peace pays

Residents of the area give some other reasons also for such surge in the prices of real estate. “Due to militancy in the adjoining localities, people used to avoid investing in this belt, but today the situation is entirely different”, said Arvind Sharma, a government servant.

He said that the return of peace, to some extent, had also contributed to the increase in the prices of property. Furthermore the development of some new tourist destinations has also attracted the investors to this area.

Businessmen from Katra are also coming in large numbers to invest in Reasi and its adjoining localities. Keeping in view the increasing numbers of devotees at Shiv Khori cave, Dera Baba, Baba Dhansar, Sath Pandies and other religious spots, businessmen have been opening shops and hotels in these areas.

Pilgrimage to Lord Shiva’s holy shrine of Shiv Khori located in picturesque Ransu area of Reasi district has also started picking up. Keeping in view the increasing numbers of pilgrims, investors have started investing in this belt to expand their business.

Developmental activity at Ransu, which serves as base camp for the shrine and Shiv Khori, has also started picking up at an extraordinary pace during the past one year. On an average, 30,000 pilgrims have started visiting the shrine every month and the number has been increasing steadily.

Reasi town earlier had witnessed such surge in the prices of the real estate when National Hydroelectric Project Corporation (NHPC) had started the construction of Salal Hydroelectric Project at Jyotipuram near Reasi in 1970. The authorities had recruited a large number of people at that time who had purchased land and constructed residential units here.

On rail map

But after completion of the project in the year 1987, a majority of these employees were transferred to other states and after that the prices of real estate remained stagnant for a long time. From 1987 to 2007, prices of real estate increased marginally because people preferred to invest either in Jammu or Udhampur. But now the Jammu–Srinagar–Baramula Railway line project has given a fresh lease of life to the real estate business in the area.

The project, which is under construction, will pass through Reasi. From Katra the railway line will traverse through the Reasi-Banihal area with stations at Reasi, Salal A–Salal B, Surukot, Barala, Sangaldan, Kohli and Laole.

As the work on this project has been re-started, the business community is very much aware that the railway line will bring Reasi on the rail map of the country and accelerate development and prosperity in this area so they are purchasing land in this belt.

GROUND REALTY
An ideal cupboard
Jagvir Goyal

Several tips on woodwork, joinery fittings, wood substitutes and cupboard shutters have been shared with the readers in this column. Yet queries are being received to discuss the cupboard design and its provisions for best comfort of the user. A common request is to suggest a design that may help in classifying the wardrobe items. Well, here are a few valuable tips on the issue:

Most of the cupboards are provided with a major compartment with a hanger rod in it. This compartment is used to put hangers for suits, sarees, shirts, and trousers on the hanger rod and to store some ironed clothes on the shelf. The balance area of the cupboard is divided into a number of shelves. Among these, the lowest ones are used to store some un-important items, the uppermost ones store some clothes and items but are difficult to operate. Only the middle ones, to the side of hanger compartment, offer convenient space for storage of shirts, hankies, socks, night suits etc. Under this arrangement, often it is not possible to classify the items properly. Overall, the cupboard gives a cluttered look and the house owner remains dissatisfied with the arrangements in his cupboard.

Desirable design

Normally, the top level of cupboard is 6’9” above the floor level. Out of it, the skirting portion of the room consumes four inches. Thus a net height of 6’5” is available for utilisation. Width of the cupboard varies from room to room as per space available. Depth of cupboard should be more than 18 inches if hangers are to be hung inside properly.

The bottommost part of the cupboard is always inconvenient to use. It demands squatting or sitting on the floor. It is better to create a horizontal shoe rack here by providing a horizontal wooden shelf 11 inch above the bottom and dividing the horizontal space through a central partition. The doors to the two compartments thus created at the bottom should be bottom hung and open in a slanting manner at such an angle that you may conveniently put in or take out your footwear from it while standing. Provide the doors with magnetic catchers to close them with your foot itself. Next, provide two or three drawers in a row of 7-inch depth. Above these drawers, another row of drawers of 7-inch depth can be created. All these drawers and the shoe rack will consume a vertical height of 2’3”. Leave the balance area of 4’2” height for the hanger compartment for full width of the cupboard.

The drawers

Depending upon the width of cupboard, you have four to six drawers with you. Use the drawers for storage of different items. One can be used for the undergarments, second for night dresses, third for shorts and sports-wear, fourth for handkerchiefs and socks so on. Everything except the main attire can be put in there in a planned manner. Provide each drawer with a folding or flush handle so that the handles do not protrude beyond drawers’ surface and interfere with cupboard’s shutters.

Front niche of drawers

While the lower set of drawers is of full depth, create vertically open niches in front of upper drawers. Let the horizontal depth of these niches is 3 to 4 inch while the vertical depth is equivalent to depth of the drawers. These niches prove very useful for storage of perfumes, cuff links, tie-pins etc. Under such arrangement, the upper set of drawers need not be provided with front handles. You can easily pull them out by inserting your fingers in the front niches.

The hanger compartment

Normally, painted or chrome plated MS pipes or aluminium pipes with brackets are provided in the cupboards as hanger rods. In such cases, see that the pipe diameter shouldn’t be more than ¾ inch. 1-inch diameter pipes often obstruct proper resting of hangers on them. Standard sized wardrobe rails are also available in the market. These are 15 mm wide and 30 mm deep. Choose such rails in chrome painted steel or anodized aluminium. While the end supports for them are in steel, the central supports are in plastic and are supplied with these rails. There is no play of hanger rods in these supports. Run the hanger rod for full width of cupboard by using central supports wherever necessary.

Pull-out hangers & racks

Also add a trouser pull out hanger in the second corner of the cupboard. Pull out belt racks are 500 mm long and 75 mm deep. These can hang 8 belts at a time. One such belt rack should be provided on the back wall of the cupboard.

Organisational drawer

This is an optional item and can be provided in place of one of the drawers. This drawer is divided into 24 small sized rectangles of 5”X4 ½ ” size, each of 4 inch depth. This drawer is available for a width of 800 mm with net sliding drawer dimension of 764 mm. This drawer has a weight bearing capacity of 20 kg. Mostly walnut wood is used for it. It can be well fitted in your cupboard if planned in advance. The 24 rectangles can be used for storage of small items.

Shirt pull-out drawer

It is another optional item that can be provided in place of one of the drawers. This drawer has a 764 mm wide pull out shelf sliding over another 800 mm wide shelf. The pull out shelf is a plain shelf of the shape of a tray. Shirts can be stored on it, one above the other. The shelf has built in drawer runners with ball bearing slides and can move most smoothly even after laden with 20 kg load. It is a good item to store ironed shirts or sarees.

This column appears fortnightly. The writer is deputy chief engineer, civil, PSEB. He can be reached at www.jagvirgoyal.com

Tax tips
Get sale deed registered at market price
S.C. Vasudeva

Q. I intend selling my house. The agreed price would be around Rs 70 lakh. The maximum amount acceptable to buyers for registering the deed with the tehsildar is Rs 20 lakh. The price fixed by the authorities for minimum registration is Rs 6,000 per sq.yd. I do not want to be burdened with the balance unaccounted money that I don’t need. With the proceeds I intend to purchase a flat in Dehradun where a cheque is acceptable to the builders. There was only one offer where the buyer agreed to make a registry worth Rs 20 lakh and pay me the balance amount by cheque. How do I account for this cheque amount of 50 lakh? How can I safeguard my interests?

 — Anupam Dhar

A. It would be advisable to get the sale deed registered at the prevailing market price in order to steer clear of any problem arising out of any unaccounted transaction. You have not indicated the purpose for which the buyer is going to make the additional payment of Rs 50 lakh by cheque. I am, therefore, unable to advise you on this particular issue. However, as stated above, it would be in your interest to get the sale deed registered at the full amount of Rs 70 lakh being the prevailing market price of the property.

Land valuation

Q. I am the owner of a piece of urban land that is situated within the city and has considerable value. I have filed Wealth Tax return on the basis of Registered Valuer’s report. However, the Wealth Tax Officer is insisting that he will have to make a reference to the Department’s Valuation Officer for the purposes of determining the value of such land. Is it possible for him to ignore the valuation report of the Registered Valuer and refer the valuation to Department’s Valuation Officer?

 — Alok

A. In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets, which are includible in the wealth for the purpose of the levy of the Wealth Tax is to be determined in accordance with Section 7 read with Schedule III to the said Act. Schedule III does not prescribe any method of valuation in respect of the urban land. In the residuary clause of Schedule III, it has, however, been provided that the value of any asset other than cash being an asset, which is not covered by Rules 3 to 19, shall be estimated to be the price, which in the opinion of the Assessing Officer would fetch if sold in the open market on the valuation date. The said Act also provides where valuation of any asset is referred by the Assessing Officer to a Valuation Officer, the value of the asset shall be that which is determined by the Valuation Officer to whom reference has been made by the Assessing Officer.

In view of the above provisions read with and Circular No. 96 (dated 25.11.1972) issued by the department, it is the Assessing Officer who has to determine the value of an asset for which specific provisions of the Schedule III are not applicable. Section 16A of the aforesaid Act provides that where Assessing Officer is of the opinion that the value determined by the Registered Valuer is less than the fair market value, he may refer the matter relating to such valuation to the Valuation Officer. In my opinion therefore, the Assessing Officer can make a reference to the Valuation Officer in case he is not satisfied with the valuation made by the Registered Valuer.

Wealth tax return not needed

Q. I recently constructed a commercial complex in Gurgaon, a part of which has been let out to various tenants. The other part has been sold. I have been advised that the let out building is subject to Wealth Tax and I am supposed to file the Wealth Tax return. Is the information given to me correct?

— Dinesh

A. The wealth-tax is leviable in respect of net wealth on the valuation date of every individual, HUF and company at the rate of 1 per cent of the amount by which the net wealth exceeds Rs 15 lakh. However, such net wealth is to be computed after considering the value of those assets that are specified in clause (ea) of Section 2 of the Wealth-Tax Act, 1957. One of the items covered in the said clause is any building or land appurtenant thereto whether used for residential or commercial purpose. An exception to this item is any property in the nature of “commercial establishments or complexes”. a commercial complex constructed by you would not be eligible for wealth tax in view of the above exclusion, this being a property in the nature of “commercial establishments of complexes”. Therefore, if you do not have other assets which are includible for wealth-tax purposes as specified in clause (ea) of Section 2 of the Wealth-Tax Act, 1957, it is not necessary for you to file a wealth-tax return.

Land away from MC limit not capital asset

Q. I am a retired bank official and am settled in Karnal. I have sold my share of an agricultural land situated in my native village. The land was being used by the family for agricultural purposes and is situated far away from the limits of any municipality. Is the amount realised on sale taxable?

— Pankaj

A. In case the agricultural land is not situated within the specified distance of the municipality/municipal corporation/cantonment board etc.¸ such agricultural land is not considered to be a capital asset and therefore the capital gain arising on the sale of such land is not taxable. the fact of the agricultural land being far away from the municipality/municipal corporation/cantonment board etc; may be verified. The Notification No. 9447 (F. No. 164/3/87-ITA-1) dated 6.1.1994 issued by the Govt of India may kindly be looked into in this regard. In case the agricultural land that has been sold by you is not covered on the basis of the said notification, the capital gain arising on sale of such land would not taxable.

This column appears weekly. The writer can be contacted at sc@scvasudeva.com

REALTY BYTES
Rs 125 crore project launched

The Rs 2000-crore real estate SVP Group recently announced the launch of Gulmohur Residency project in Indrapuram. Spread over three acres, the project will showcase 308 spacious three-BHK apartments having four variants ranging between 1250 sq.ft,, 1350 sq. ft; 1450 sq ft; and 1650 sq.ft.

Strategically located near NH 24, the project is close to developed green areas and amenities like parks, shopping complex, jogging track, gym, mall, ATM. The project will have round-the-clock security and back up for water and electricity, ample parking to ensure maximum comfort to the residents.

While launching the project Vijay Jindal, CMD, SVP Group said, “Buyers today like to invest in projects that are close to developed amenities and in areas where most important facilities like hospitals, schools and mallsand connectivity are available. The forthcoming Commonwealth Games, too, have triggered a lot of action in infrastructure development, retail and hospitality sectors in and around Indrapuram . The project is expected to cost over Rs 125 crore and will be ready for possession in 30 months. — TNS

Sky Villa project

Real estate developing firm Kumar Urban Development Ltd will start construction work on its new project “Sky Villas” in Mumbai by January next year. The Sky Villa project, a 270-mtr high tower called Kumar Couture, will have villas of 8,000 sqft carpet area each. “Construction on the project will begin in January and will be completed in four years,” Kumar Urban Development Chairman and Managing Director Lalit Kumar Jain said in a statement. The company, which has recently filed draft paper for its proposed initial public offer (IPO) with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 450 crore will also construct a 62-storyed building in Mumbai. — PTI