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Scenic Abode
Real View
Tax Tips
Green House
Real Talk
Realty Bytes
Hotel Projects
Affordable housing to drive realty mart
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Scenic Abode
The demand for more and more premises for residential, commercial and government purposes has made the construction activity expand more towards the outskirts of the city. Sahastradhara road has, thus, become one of the choicest locations with a large number of housing projects coming up there. The Sahastradhara road area, which begins at Survey Chowk, proceeds eastward to Sahastradhara crossing, before splitting towards the North, is considered to be an ideal destination for those wanting to invest in real estate in Dehradun. Though prominent builder Parsavnath is in the process of building a 400-acre estate there, several other builders too, are in the picture with their housing projects. The scenic charm of the area also adds to the appeal of the site. Rajender Oberoi of the Silver Oak construction company says, “From Sahastradhara, one can get a marvelous view of the snow-clad peaks of Mussoorie and fresh water springs at Sahastradhara are also a major tourist attraction of the area.” Its connectivity to the city and the presence of a number of educational institutes on the way is also considered to be a big advantage for those planning to invest and settle down in Dehradun, says Rohit while adding, “ Many schools and colleges lie in the vicinity of this area. IT Park, an ambitious project of the state government, too, is nearby.” With so many positive points investment here is being considered a wise decisions by realtors. Nishant Kumar, manager of Grah Awas Vikas company, looks forward to a boom in property prices here in the near future and says, “The property here will be among the costliest and poshest in the city as one 8,200 sq m road is being constructed on this way which will connect the township of this area with Jolly Grant Airport directly. With this bypass road, people will be able to go to the nearby cities such as Dhanaulti, Chamba, Tehri Garhwal etc without having to go via Mussoorie, Vikas Nagar or Rishikesh.” Besides this, he also talks about the master plan of state government to build a ring road here. He informs, “The proposed ring road, which has been mentioned in the master plan, marked between the period of 2008-2025, would touch National Highway 72 through Mokhumpur, a town which, then, will directly get connected to the Sahastardhara road. This highway will end the need to get into Dehradun city to travel to other nearby cities.” The property prices in the area have gone through many upheavals — first boom, then slump, now recovery and industry experts are predicting steady growth in future. Deciphering more about the graph of growth of the property in this area over the past few years, builder Mukesh Chaudhary owner of CRS Builders says, “The property on Sahastradhara witnessed a boom period between year 2003-06. It was at that time that a lot of individual investors and realtors entered this area. The cost of premium property was around Rs 3,000 per sq ft, and of cheaper version was around Rs 2,500. The sudden slump brought the prices down in 2009 when the cost of property at prime locations touched Rs 2,400 per sq ft and at other places it was around Rs 2,200 per sq ft. But now with some recovery the prices range between Rs 2,200 to 2,500 per sq ft and are likely to double by next year and this would make the investors richer by several lakhs in one single property deal. It would take a year for the boom to replace the slump, by then the slow pace of work in several housing projects, too, will pick up momentum, feel industry watchers from the area. |
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Real View
As the real estate boom went bust, dashing the hopes of millions to the ground, the importance of having stringent regulatory measures in place became evident to everyone involved in this sector. The real estate sector in India lacks transparency, and as a result it is graft-ridden and unorganised, to say the least. Obsolete laws governing the sector make fair trading a difficult proposition. With the Union Ministry of Housing and Urban Poverty Alleviation coming out with the draft Model Real Estate (Regulation of Development) Act (Model Act), the debate over regulatory measures has also picked up momentum.
The Act proposes to establish a regulatory authority to control and promote construction, sale, transfer and management of residential and other similar projects. Major tasks before the policy makers would be to safeguard consumers’ interests, to control property prices, to check tax evasion and to effect many more reforms for the smooth functioning of the trade. However, there are some important areas that need to be highlighted and given due weightage while forming an effective policy to have far-reaching positive effects on the trade. The builders/developers should bring transparency to build confidence among the customers. But at the same time it would be totally unjustified to put the entire blame on the builders for the sky-rocketing prices and delay in projects. Redtapism and non-professionalism at various levels in government agencies involved in the development of the real estate sector is also to be blamed for the same and to some extent the customers too, are to be blamed. The government has been found lacking in almost all the issues related to this sector. The success of realty sector depends on four major factors:
w
Land Each of these four should be brought under the ambit of a regulatory authority.
Land
The rates of dwelling units are largely dependent on the cost of land. Non-availability of cheap land is one of the foremost problems for realtors and the government is largely to be blamed for this. The way governments are making acquisitions on exorbitant rates cannot be justified. Firstly, the government jacks up acquisition rates without making a fair assessment of land value (fertile land should cost more and land that is not fit for agricultural purpose should be less valuable. But the government generally overlooks this factor). Secondly, the state bodies such as PUDA, HUDA, HIMUDA etc that have been set up to take up land development and make housing affordable to people are, unfortunately, playing a negative role in the development of the real estate sector. Take, for example, the case of Mohali: the plots available in sectors like 66-80 cost around Rs 28,000 to 33,000 per sq yard, but the reserved price announced by PUDA (for an auction to be held next month) is Rs 50,000 per sq yard. That means the government itself is giving an indication to the existing plot holders to hike the prices of their plots. Here it is not the builder who is increasing the rates but the government bodies who are playing mischief. Can the authorities come out with a justification for this exorbitant price tag? Maybe not, because more than simple mathematics is at work here. The common man must be aware of this before putting in bids at such auctions. Instead of bidding higher and higher in such auctions, he should look out for better and cheaper options available in the resale market. The brokers should play a positive role and act as consultants and not merely as property dealers, and should advise their clients for better and cheaper options, which unfortunately they usually don’t do. If the government is really serious about controlling the prices of properties and is honest about making housing affordable for the common man, then it should desist from such “malpractices”. Rather, the government should come up with a law that only barren or less fertile land that is unfit for farming would be used to develop townships and residential colonies. The creation of Chandigarh is a very good example of this strategy. Such lands are cheap and thus will bring down prices of developed properties, besides benefiting farmers who own such land. This step will also stop the decline in the total area under cultivation. Fertile land should be acquired only in cases of extreme necessity.
Approval of projects
The second important factor is the approval of projects. It has been seen that competent authorities take their own time to clear or reject projects, and there is no specified time frame and check on them. Environmental clearance is one of the most time-consuming processes. One fails to understand why this cannot be done under a single-window concept. There should be a set time frame to decide about the approvals for a project. The licensing procedure should be made simple and the authorities concerned should be made accountable for delay of any sort.
Banking
Banking plays a vital role and unfortunately the inconsistent policies of banks create confusion among the prospective home loan borrowers. An unprofessional approach adopted by bankers dealing with housing loans. Instability in loan rates is another factor that should be looked into and brought under some kind of regulation. Reverse mortgage is a welcome step. More and more awareness should be generated regarding this scheme
Consumer
Around 50 per cent of the investors in this sector make investments just for the sake of making profits within a short time and get into projects without taking into consideration their financial status. Thus, very often they fail to make timely payments to the builders, which usually leads to delays in the completion of projects because most of the projects are instalment-linked constructions. Thus, the government should be involved the process of making a regulatory body not just to regulate builders. It should also come out with a comprehensive regulatory body to regulate each of the four areas discussed above, and the role of property dealers/ brokers should also be put under scanner. (The writer is a Mohali-based consultant) |
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Tax Tips
A. The facts given in the query indicate that the purchaser has a sale letter and the original title deed endorsed by the bank in favour of the person who is selling the flat to you. The sale letter, I hope contains the details as to how the property was in the possession of the bank. In all probability the property must have been acquired under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SRFAESI) Act, 2002. Such letter must be in his favour. It would, therefore, be necessary for the seller to get a conveyance deed executed in his favour. The seller can thereafter execute a sale deed in your favour. You would have to ensure that the sale consideration is not less than the circle rate notified by the state government for the levy of the stamp duty on the conveyance deed. There is nothing illegal about the transaction provided you have ascertained from the bank the veracity of the documents that have been produced to you by the seller.
No exemption on booking amount
Can I get tax rebate on the booking amount? Can I get tax rebate on the EMI amount, which I will pay before the registration is done? How much tax rebate is possible on the basis of EMI per year?
— Dr Pradip Sarkar A. On the basis of the facts given in the query, it seems the flat has been purchased by you from a builder who is constructing the flats under an approved scheme of Punjab Urban Development Authority (PUDA). The replies given hereunder to your queries are, therefore, based on such presumption: According to the provisions of Section 80C of the Income-Tax Act 1961 (the Act), payment made towards the cost of purchase/construction of a new residential house property is allowable as deduction provided in the same is in the shape of (a) any installment or part payment of the amount due under any self financing or other scheme of any development authority, or housing board or other authority engaged in the construction and sale of house property on ownership basis; or (b) any installment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him. The facts given in the query do not indicate that you comply with any of the above conditions. No deduction under Section 80C of the Act, therefore, can be allowed for the booking amount of Rs 51,000 paid by you to the builder. The deduction in respect of repayment towards the purchase of the flat is allowable provided the income from such house property is chargeable to tax under the head ‘income from house property’ (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head). Since the flat is under construction, no deduction of the EMI would be allowable under the aforesaid section. As and when the possession of the house is handed over, you would be able to claim the deduction of that part of EMI that is towards the repayment of principal amount of loan. The interest component of EMI will be allowable as deduction against the income from house property. This deduction would be available as and when the possession of the house is taken by you. The deduction under Section 80C of the Act against the total income is allowable to the extent of Rs 1 lakh. However, the said deduction is inclusive of all the payments such as insurance premium, provident fund contribution, tuition fee, subscription to National Saving Certificates VIII issue etc. specified in the aforesaid section.
Pay tax and remit sale proceeds to US
A. The sale of property inherited by you from your father would result in capital gains tax liability. It is presumed that the property was held by your father for a period of more than three years and therefore, it should be possible to treat the same as a long-term capital asset. The capital gain arising on the sale of such property would be taxable at the rate of 20 per cent. The capital gain would be computed by indexing cost of the property. You also have the option of adopting fair value as on 01.04.1981 in case the same exceeds the cost. In such a case such the fair value will be indexed. There is difference of opinion with regard to date from which the indexation is allowable i.e. whether from the date when your father became the owner or from the date the property devolved on you, your brother and sister. You will have to take a decision on this issue in consultation with your tax adviser. The index has been notified by the Government of India. The index for the financial year 1981-82 (base year) is 100 and the index notified for financial year 2009-10 is 632. Such indexed cost/indexed fair value would be subtracted from the net sale consideration (sale price less expenditure incurred wholly and necessarily for effecting such sale) and the balance amount would be a capital gain. Each one of you will have to file the tax return declaring 1/3rd share of capital gain on the sale of such property. You may have to obtain a permanent account number in case the same has not been obtained so far. It should be possible to remit the sale proceeds to USA after paying the taxes on the capital gain arising on such sale.
Claim deductions
Q. I am member of a house building co-operative society and a flat has been allotted to me by this society. Am I entitled to claim the deductions available under Section 24 of the Act for the purposes of computing the income from house property? The said flat has been let out at a monthly rental of Rs 20,000.
— Pawan A. According to the provisions of the Income-tax Act, 1961 (the Act) a member of a co-operative society to whom a flat has been leased is treated as a deemed owner of such property. Once a member of a co-operative society is deemed to be owner of a property under Section 27(iii) of the Act, irrespective of the fact that legal ownership continues to vest with the co-operative society, the assessment in respect of such property shall be made in the hands of the member to whom the flat has been allotted. Thus you would be entitled to claim the deductions allowable to you under Section 24 of the Act.
Deduction on house loans
Q. I had purchased a flat alongwith my wife. I had taken a loan from the bank for which the installment and interest are being paid on a monthly basis. Recently, I have purchased another flat where the co-owner is my son. For this I have taken another loan. The first flat is in my possession and the second flat is in possession of my son. Is it possible for me to claim deduction in respect of loan installment as well as the interest payable on such loan installments?
— Gopal A. The allowable deduction in respect of loan installment towards the repayment of loan and the interest on such a loan would depend upon the source of funds with which the flats have been purchased. In case the consideration of the flat has been paid from your account in entirety and the name of your wife or son has been added for the sake of convenience, the deduction in respect of payment towards loan installment and interest on loan shall be allowable to you. This is because for the tax purposes you would be considered as the owner of the house. However, in case each co-owner has contributed separately in respect of the portion of his/her share in the flat, then each co-owner can claim the deduction under Section 24 of the Act for interest and under Section 80C of the Act towards the repayment of loan installments. It seems in your case the borrowing was made by you and it was not a case of joint borrowings. Therefore, you should be entitled to claim deduction as aforesaid provided the funds have been invested by you in respect of the acquisition of these flats.
Investing capital gain
A. In case of residential house property, the requirement of the law is to utilise the capital gain arising on the transfer of the property for the purchase or construction of a residential house. The purchase of the new house has to be effected within one year before or two years after the date of sale. In case of construction, the period allowable is three years. It may be added that in case the purchase/construction is not effected before the due date of filing the income tax return, the amount of capital gain arising on the sale of the residential house should be deposited in a bank under capital gains scheme account before the said due date. The amount so deposited can be utilised for the purposes of purchase/construction of the house.
Right on property
A. If a person has acquired a property under a power of attorney transaction by satisfying the condition of Section 53A of the Transfer of Property Act, 1882, then he is deemed to be the owner of the property even though the same may not have been registered in his favour under the Registration Act, 1908. Section 53A of the aforesaid Act lays down the following conditions. There is an agreement in writing between the purchaser and the seller. The purchaser has paid the consideration or is ready to pay the consideration. The purchaser has taken the possession of the If the above three conditions are satisfied, the purchaser becomes the deemed owner of the property for the purpose of the Act even if he is not registered owner thereof.
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Green House
Garden is an important part of a house and it doesn’t mean having a few beds here and there and a climber with some greens around. A garden becomes a place of pride when it is properly planned. And a planned garden is the one that has a lot of colour.
An all-green garden has no glamour. As we all know the grass in a lawn makes it all green but it has to be dotted with colour and that happens when there is careful selection of flora to give sustained colouration and that too all through the year. Though there is no dearth of colour during wintertime as a wide range of winter annuals flower in this season, yet some of the plants are excellent support. See the accompanying picture. There are shrubs as well as a few fruit plants that are adding colour to the garden. The two plants that you see in the picture are that of Poinsettia (Fireball) and Kumquat also called Calamondin or Chinese Orange. The miniature fruits have ornamental value. The deep orange fruits last for a long time and the fruits appear aplenty so much so that when in full bearing they completely cover the plant. The plant is also very popular with bonsai lovers. Poinsettia is an ordinary plant with green and not attractive foliage but when the shining bracts appear then even a single plant can give lend a touch of brightness to the garden. The stay of the ‘flowers’ is also very long and extends from end of November to the end of March. This is also a perennial plant that can be cut very close to ground level. Most of the readers want to know as to how and when this plant is propagated. The problem arises as the terminal growth is hollow. The plant is thus multiplied by mature or say a year-old wood that is near the base. The watering need of the plant is meager. There are a few good coloured foliage plants that give a good outdoor effect. Variegated hibiscus is one such plant. Mostly foliage of the plants that give colour during winter fades once the summer sun shows its fierce face. But the variegated hibiscus is at its best during summers and bears contrasting red blooms too. The white variegation of leaves with partially green foliage gives the garden a soothing and sober look. For best effect it has to be pruned time and again as the new growth gives fresh look and more variegation. This column appears fortnightly. The writer is a senior horticulturist at PAU and can be reached at
satishnarula@yahoo.co.in
Fortnightly Alert
The later part of February is the time when the fruits of your labour become visible as the winter annuals bloom in full glory. Now when you are inching towards getting the best from your garden, be extra cautious about attack from pests or plant diseases. Take immediate plant protection measures. Any insect, pest or disease is controlled with a specific type of chemical. If not sure, take the help of experts.
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Real Talk
Manoj Mittal, a partner in the AP Shresth Colonisers, Panchkula, is a first generation builder, who believes in putting the customer satisfaction first. As the promoter of several upcoming housing projects, including the Tricity Plaza, Platinum Towers, Tricity Homes Panchkula Heights and Panchkula Apartments, along with JP Goyal, Managing Director, Mittal forecasts a rosy future for the real estate sector in India in the backdrop of the recent turnaround in the world and Indian economies.
Q. How do you relate the recent turnaround in the Indian and world economies to the real estate sector? A. With the recession on its way out, the real estate sector is poised for a boom in the year 2010. In fact, the real estate sector went bust in 2005 in the wake of the entry of investors and fly-by-night operators. The current year would witness a lasting boom as the world and Indian economies are witnessing revival. Q. What is the potential of Chandigarh’s periphery, particularly Zirakpur, in the coming years? A. While Chandigarh’s periphery will continue to catch the fancy of genuine end users, Zirakpur, specially Peer Muchhala adjoining Sector 20 of Panchkula, is the new destination for the builders, investors and genuine buyers. Strategic location, builder profile, quality construction and people-friendly Master Plan, make Peer Muchhala the best property in the tricity at reasonable rates. Proximity to Chandigarh, Mohali and Panchkula has always been the USP of Zirakpur. Q. Your comments on the government’s policies vis-a-vis real estate sector? A. Though bureaucratic hurdles still hamper the growth of the real estate sector in India yet wisdom is slowing dawning on the government agencies that they would have to adopt “pro-people” housing policies to provide a level playing field to private players in the construction industry to give a boost to the Indian economy. There was an urgent need to review the outdated laws governing the real estate sector in India to reduce the stranglehold of bureaucracy. Q. Is slump for the real estate sector over? A. As such there was no slump in the real estate sector as the genuine buyers were always there in the market. With investors pulling out of the market in the past few years, the real estate sector was passing through a “correctional phase”. In fact, the beginning of the year has brought cheer to the realty sector with the return of the genuine buyers and investors. Q. Your forecast for the realty sector in India and world? A. Since “roti, kapda aur makaan” are the basic needs of man; the real estate sector would continue to grow by leaps and bounds in the world and India. The boom in the real estate sector has already forced the Chinese government to revise the interest rates on home loans. As housing brings a lot of incentives for the salaried class like exemption in the income tax, the demand for quality housing will always out pace the supply in India and the world. Q. How do you see the competition between government and private bodies in the realty sector? A. A healthy competition between the government and the private sector could go a long way in offering affordable housing to the million of homeless citizens with the ultimate aim of “housing for all”. In fact, two sectors could work as “partners in progress” with the government sector focusing on the infrastructure development and the private sector on providing housing at affordable prices while remaining alive to its social commitment for the lower strata of society.
psharma@tribunemail.com |
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Realty Bytes
New Delhi: Buoyed by robust sales of its low-cost homes, real estate firm Ansal API said it will launch over 2 million sq ft area under affordable housing category during the next fiscal.
“We have already sold over 8,500 affordable houses in a price range of Rs 5-12 lakh this year and will achieve the target of selling 10,000 units by March, 2010,” said Ansal API vice-chairman and managing director Pranav Ansal. Ansal said the company would launch up to 4 million sq ft of new projects across the country during the next fiscal. “Of the total projects, about 75 per cent will be residential and rest will be commercial projects,” Ansal said, adding about 70 per cent of the housing projects would come under affordable category. He, however, declined to comment on the likely investment the company would make to build these projects. Ansal API would invest Rs 100-150 crore in the construction of the planned 10,000 affordable units over the next couple of years as the company already owns the land, he said. The sizes of these houses would vary between 300 sq ft and 500 sq ft.
— PTI
New Delhi: TDI Infrastructure Ltd launched its Kingstreet commercial project in TDI City, Kundli recently. Kingstreet, built-up commercial on 204 sq yards is strategically located just 200 mtrs (approx) away from G.T. Karnal Road. It is being constructed on the main sector road and TDI Club road crossing. Besides offering basement plus ground floor, first floor and second floor with terrace, other features include vitrified tile flooring, POP punning on the walls & ceiling, beautiful glass façade coupled with basic facilities like ample parking and 24X7 security. TDI is also offering easy loan facilities on this commercial project.
— TNS
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Hotel Projects
Bangalore: The Sunil Mantri Group,a leading real estate firm, has said it was diversifying into the hospitality sector and expected to open up four to five of its hospitality properties by 2011.
The group has signed an MOU with Oakwood for launching a 200 units service apartment in Mumbai, Sunil Mantri, Chairman of the group told PTI in Bangalore recently. It was also looking at launching 10 properties in the hospitality sector. The group was in the process of constructing properties and in some places taking over properties in Pune, Ahmedabad, Goa, Chandigarh and Bangalore. The group, earlier known as Sunil Mantri Realty Limited, had also acquired 76 acres of land belonging to the Maharashtra State Textile Development Corporation in Solapur, Nagpur and Kolhapur where it would construct properties in the hospitality sector and hopes to launch them by 2013. “We are targetting 1000 rooms in all by 2013”, he said adding these hotels would be in the mid-market category. The group was planning an investment of Rs 750 crore till 2013 in the hospitality sector out of which Rs 250 crore would be internal accruals and Rs 500 crore from banks. On its overseas venture in Malaysia, Sunil said it had signed a MoU with the government and the process of land acquisition is being completed. A piece of 150 acres had been identified. It would comprise residential, commercial space and IT park. The total investment was Rs 1000 crore, he said.
— PTI
Amari to enter India
Mumbai: Thailand-based hospitality major, Amari, plans to foray into the Indian market by setting up at least seven four-star hotels near major airports in the country, a top company official said. “We plan to open four-star hotels associated to airports and will target corporate clients,” Amari Group, CEO, Peter Henley said in Mumbai. The company plans to come up with first such hotel in Delhi by the year-end, followed by Mumbai next year. Other cities where Amari plans to open hotels include Kolkata, Bangalore, Chennai and Hyderabad amongst others. Though Henley would not divulge the investments set aside for the hotel-projects, it is understood that the company plans to deploy 5-10 per cent of its total Asia investment in the country. Amari plans to tie-up with local construction companies to jointly bid for airport hotels in major parts of India, Henley said. “We are in talks with major real estate developers in India to jointly bid for airport hotels across different parts of the country,”Henley said.
— PTI
Carlson tie-up for Regent
New Delhi: Global hospitality chain Carlson has announced plans to open its luxury brand Regent in India with the opening of a hotel in Gurgaon in 2013. The Carlson has tied up with real estate major Pioneer Urban Land and Infrastructure (PUIL), which would be investing Rs 230 crore, for building the hotel while the US-based hospitality group would operate it. “The Regent brand has strong historical roots in Asia. This is the first Regent brand in India. The Regent Gurgaon will have 160 rooms and the project will be completed in three years from now,” Carlson President and CEO Hubert Joly said. Carlson was here to sign a Memorandum of Agreement (MoU) with Gurgaon-based PUIL. About the funding, PUIL CMD Manish Periwal said the investment would be funded in the debt-equity ratio of 1:1 and most of the equity portion would come from internal accruals. Carlson Hotel Worldwide is a leading global hotel company with more than 1,060 locations and has presence in 77 countries. Its brands include Regent Hotels, Radisson Hotels and Resorts, Park Plaza, Country Inns and Suites and Park Inn. In India, the group has presence in most of the brands but in the luxury Regent brand this is the first property Carlson would be operating.
— PTI |
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Affordable housing to drive realty mart
“Any significant increase in property prices and a tightening monetary policy, could have an adverse impact on the future demand,” Fitch said in a report on the domestic realty market, ahead of the Reserve Bank’s monetary policy review. The Fitch report also said affordable homes would drive the housing sector in the coming months, while the commercial real estate will have to wait for some more time for recovery. “The affordable entry segment should continue as the primary growth driver in the Indian residential sector for 2010,” the rating agency said. “The commercial segment continues to remain under pressure. We expect demand for commercial space to improve in the second half consequent to the expected resumption of hiring in key sectors like IT/ITeS and financial services,” Fitch added. The rating agency said as retailers move back into the expansion mode, there could be a pick up in volume and rents to stablise in the second half of the year. With the global economic crisis, the overall demand in the real estate sector had plunged in the first half of last year resulting into a significant drop in property prices. Though there was some recovery seen in housing segment on government’s stimulus packages and shift in strategy of the developers’ to focus on mid to affordable segments, commercial and retail segments are yet to see any rise in demand. “Fitch expects growth in 2010 to be driven by government support (especially for the affordable segment), improved access to debt and capital markets and recovery of the real estate demand,” the rating agency said in a report. However, the profitability of developers might be affected with their current focus on low-margin, high-volume strategy, though cooling commodity prices could provide some cushion. “The cost of land would be critical to the overall profitability of the project, especially in the low-margin affordable projects,” Fitch said. To be successful, developers are either to be selective in acquiring land or enter into joint venture development contracts, where there is hardly any exposure to the market movement in the land prices.
— PTI |
Dehradun is now a city bursting at the seams with its burgeoning population ever since people from the nearby towns, villages and different states have started settling down here to get a share of the benefits of a capital city. The city thus has been bustling with development activities after Uttaranchal came into being in 2000.
As the real estate boom went bust, dashing the hopes of millions to the ground, the importance of having stringent regulatory measures in place became evident to everyone involved in this sector. The real estate sector in India lacks transparency, and as a result it is graft-ridden and unorganised, to say the least. Obsolete laws governing the sector make fair trading a difficult proposition. With the Union Ministry of Housing and Urban Poverty Alleviation coming out with the draft Model Real Estate (Regulation of Development) Act (Model Act), the debate over regulatory measures has also picked up momentum.
Legal deal
Garden is an important part of a house and it doesn’t mean having a few beds here and there and a climber with some greens around. A garden becomes a place of pride when it is properly planned. And a planned garden is the one that has a lot of colour.
An all-green garden has no glamour. As we all know the grass in a lawn makes it all green but it has to be dotted with colour and that happens when there is careful selection of flora to give sustained colouration and that too all through the year.
Dehradun is now a city bursting at the seams with its burgeoning population ever since people from the nearby towns, villages and different states have started settling down here to get a share of the benefits of a capital city. The city thus has been bustling with development activities after Uttaranchal came into being in 2000.
Rohit Kumar, manager, Oakwoods construction company that is building society flats/apartment in the area, while giving reasons for the massive appeal of the location says, “Dehradun, which used to be a clean, green and peaceful city is now getting overly crowded and polluted. People now yearn for tranquility and environment friendly atmosphere and this is the USP of this area. There is abundance of space where people can have their own lavish independent houses or luxury apartments. Dehradun can no longer afford such opulence inside the city anymore.”
Q. I want to purchase a flat built by private builders from a person who has purchased it from the bank in an open auction. He is having sale letter issued by the bank along with original title deed endorsed by the bank in his favour plus TSI issued by Municipal Corporation. I want to know whether the seller can transfer this flat in my name on the basis of the above-mentioned documents. Please guide if it is legal transaction.
— D. Kumar
Q. I have booked one flat near Derabassi approved by PUDA for Rs 17 lakh and the booking amount is Rs 51,000, which has to be paid in cash. Rest of the amount will be paid in four installments up to April. I have taken house loan from LICHF and the EMI will be about 12,000 per month. They will give possession in March/April 2010 and after that registration of the flat will be done. As I am a government servant please clarify my following queries:
Q. My father had made a Will, on the basis of which his property has been mutated in the name of myself, my brother and our sister. The property was constructed somewhere in 1975. All of us are living abroad. We have no intention of coming back to India. Therefore, we would like to sell the property that is situated in a very prestigious area of Delhi. Do we have to pay any tax on the sale of such a property? Will it be possible to remit the sale proceeds to USA?
— Mahesh
Q.
I have entered into a transaction to sell my property. It is expected that the sale deed would be executed by the end of February 2010. The property being sold is a residential house. I intend to buy another residential house in lieu of the property, which I am selling. To save capital gains tax am I supposed to invest the entire consideration received on sale of the house that is being sold or the amount of capital gain only?
— Raja Ram
Q. I have purchased a property on power of attorney. I have also taken the possession of this property and am occupying it for my own use. Will I be treated as the owner of the said property?
— Santosh
New Delhi: