The savvy set
Growth of the sector has also brought about a marked change in real estate brokers, who have become well-networked and tech savvy, writes Charandeep Singh

The growth, or should one say mushrooming of real estate brokers in an area, is directly proportional to the infrastructural development and construction activity taking place in that area. Due to the rapid industrial growth, Punjab is among the most favoured destinations for realty development, hence as compared to its neighbouring regions, Punjab has a greater concentration of real estate agents, consultants, developers, construction and investment companies. Since the realty sector is an important part of the overall development of the area, the role of property dealers evidently becomes significant.

However, gone are the days when the role of a broker was limited to arranging a meeting between the buyer and the seller, getting a deal finalised, and earning commission for the ‘service’. Now they are not limited to 10x10 cabins, but have swish office addresses and are more professional in working out deals.

Changing needs and buyer profiles have also changed the way property deals are being worked out by brokers. Along with the online real estate portals global realty consultancies, too, have entered the Indian market. Thus to keep up with the competition, the conventional broker has to upgrade skills as the profession now requires well-educated and tech-savvy professionals.

With no set rules to govern this business, incidents of fraud and cheating are reported regularly. In many cases the brokers promise the moon to the clients, but the moment payment is made things take a complete u-turn. Real estate brokers, since they are the field force of the realty sector, play a very important role in shaping the prices in this sector. Recently a major builder constructed some ultra-deluxe apartments in hills, but since the apartments didn’t have servant quarters, the consortium of property dealers refused point blank to sell the property. Ultimately, the builder had to make some structural changes in the project, and now the project is 100 per cent sold. This speaks volumes about the influence of this lobby.

Changing face

A new age real estate broker is tech savvy. He shares a symbiotic relationship with technology. Apart from registering themselves on various online real estate sites, they excessively use softwares like “virtual assistant”. Vivek Kapoor, a real estate consultant based in Chandigarh, says, “Why pay for something you can get at no cost? And it’s even better when the free solutions do such a great job of helping you to market and manage your real estate business. I run through software, hardware and services technology solutions thoroughly”.

Real estate technology solutions are gaining clients in the real estate industry. Busy agents and brokers are finding, with today’s technology, that they can use software that isn’t physically in their office, or even in their state.

Getting registered on a real estate site is quite useful in procuring NRI business as well. “Since NRIs are not able to verify a property physically, after going through the vivid details of the property on a site, they have a fair idea as to what they are in to. Rest is our salesmanship as to how we get the deal done”, avers Amandeep Brar of Brar Realtors, Ludhiana. Even in general parlance, people like educated and swank brokers. The days of beetle-leave chewing “babu”, who would show them properties by hopping from one site to the other, are over. Animesh Kapoor, who works for an online real estate site, says, “We have seen a 30 per cent hike in the deals that matured after the leads were generated from our portal”. Thus technology has become a key feature in real estate business and that too for good.

Though there are plenty of property dealers, one should be very careful while choosing the right one to avoid falling into the trap of unscrupulous elements operating in the real estate arena in the disguise of dealers. Hence, before approaching a dealer, make sure of their authenticity.

Customer services

Real estate dealing is one job which depends a lot on customer franchise. In order to make it big, one must be creditable and build a reputation for himself, says Pushpinder Singh of Trust Properties, Mohali. “When I went to purchase my first flat, it was the broker who got me the best deal within my budget, which many others were unable to source for me. So when I was to buy my second flat after a gap of five years, I straightaway went to my previous broker and got the property from him,” says Vipin Sharma, a resident of Chandigarh. Customer acquisition is important, but customer retention is equally important if you need to build up a business in property dealing big time.

However, there is a pressing need to regulate the brokerage service in order to make it more transparent and organized, and brokers need to be properly trained and licensed, says Pushpinder Singh, who believes that there should be some minimum basic qualification required for a person wanting to enter this profession, so that the role of fly-by-night operators can be minimised. Recognising the pressing need to upgrade the professional skills and service standards of the broker community to face the challenges posed by the fast-evolving real estate industry, the National Real Estate Development Council (NARDECO) has introduced a certificate course that specifically targets real estate agents, property brokers, salespersons, commercial and customer care executives and sales and home loan agents working anywhere in India, in collaboration with Guru Gobind Singh Indraprastha University (GGSIPU) and Human Settlement Management Institute (HSMI) of Housing and Urban Development Corporation (HUDCO).

So, with a new set of educated and fully geared up professionals making inroads into the real estate sector, the conventional brokers need to get their act together.

A sensible choice

A person must have a licence before he can receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal.

But buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed.

The broker normally charges 1 per cent of the sale price from both the seller and the buyer. Says Vivek Kapoor, a real consultant from Chandigarh, “I charge 1per cent of the price which is to be registered with the estate office from either party, but then in return I also ensure that my client is only required at the time of getting the deed registered. Rest all is my headache”.

Jagjit Singh, who has recently bought a property in Mohali, says, “It makes sense to buy property through brokers, since they take care of the entire paperwork and handle all the intricacies of the estate office themselves. My broker only introduced me to the client, and I did the financial negotiations with him rest all was taken care of by the broker”. 

Tax tips
Exemption on rent paid to wife
S.C. Vasudeva

Q. I am an employee of the Haryana State Electricity Board. My wife is also a Haryana Government employee, and she has built a house by taking home loan from a bank. I am paying house rent of Rs 7,500 per month to my wife, and she is taking the income from house property in her gross income. However, I have not been allowed the benefit of exemption of HRA by the person responsible for deducting tax at source from my salary. Kindly advise whether I can avail the benefit of HRA being paid to my wife or not? — R.K. Kapur

A. In accordance with the provisions of Section 10(13A) of the Act, the exemption is not allowable in case the residential accommodation occupied by the assessee is owned by him or the assessee has not actually incurred expenditure on the payment of rent in respect of the residential accommodation occupied by him. In your case one of the conditions is not applicable as you don’t own the house. On the basis of the facts in the query, the problem in your case would be to satisfy the tax authorities that the house has been let out by wife to a husband and payment of rent is being actually made to her by you. The authorities will, therefore, have to be convinced that legally you are not the owner of the house and that the house has been let out to you by your wife and the rent has actually been paid to her by you. A clarification issued by the Board in this regard states that under Section 10(13A) of the Income-Tax Act, 1961, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-Tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to rule 2A of the Income-tax Rules, 1962, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be:

The actual amount of such allowance received by an employer in respect of the relevant period; or

The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or

Where such accommodation is situated in Mumbai, Kolkata, Delhi or Chennai, 50 per cent of the salary due to the employee for the relevant period; or

Where such accommodation is situated in any other place, 40 per cent of the salary due to the employee for the relevant period, whichever is the least.

The expenditure actually incurred on the payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on the production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.

In case you meet the conditions specified in the aforesaid guidelines the disbursing authorities should allow the exemption in respect of HRA. 

Investing capital gains

Q. I would like to know the tax implications if I sold a plot of land this year worth about Rs 55 lakh. Both me and my wife are now US citizens with OCI visa. If there is tax, can we avoid the tax by reinvesting the money in another property within one year? I also heard that there is some kind of 30 per cent flat tax on capital gains. Is this the current law or something that will be active in the next year? — Sharad Kumar

A. The facts in the query are not complete as it is not clear whether the plot of land was held for a period of more than three years. In case the same was held for more than three years, you have the following options to save the tax on capital gain arising on the sale of plot:

You can invest the amount of net consideration (sale consideration less expense incurred wholly and exclusively for such sale) towards the purchase/construction of a residential house. The residential house has to be purchased within a period of one year before or two years after the date of the sale of the plot. The construction of the residential house has to be completed within a period of three years of the date of sale of plot.

You can invest such gain in the acquisition of tax saving bonds within six months of the date of sale. The bonds can be purchased for a sum not exceeding Rs 50 lakh in a financial year.

In case the plot of land was not held for a period of more than three years, the capital gain arising on such a sale would be short-term capital gain. Such amount of capital gain would be aggregated with your other income and taxable at the normal slab rates. The long-term capital gain is chargeable at the rate of 20 per cent plus education cess of 3 per cent thereon. The rate of 30 per cent referred by you is the highest slab rate applicable to an individual. 

Tax on LTCG

Q. I bought a plot in 1997 measuring 300 sq. m for Rs 1 lakh. Now I going to sell it for Rs 20 lakh. And the proceeds i.e. Rs 20 lakh (1+19) in 13 years, How can I use this amount: 

Can I use that money for the marriage of my daughter?

OR

I have to buy a plot. What will be my Income Tax liability?  — Rajeev Bhandari

A. The amount realised by you on the sale of plot can be utilised for the marriage of your daughter. However, you will be liable to pay tax on the capital gain arising on the sale of plot. On the basis of the figures given in the query a capital gain of Rs 17,85,196 would arise on the sale of the plot. You will be liable to pay tax of Rs 3,67,750 thereon for assessment year 2011-12 (financial year 2010-11). The tax has been computed at the rate of 20 per cent plus education cess of 3 per cent as applicable to a long-term capital gain. The above tax on capital gain will be exigible even if a plot of land is purchased and the amount of consideration on sale of 300 sq. m plot is utilised for such a purchase.

In case you want to save the tax liability, you can invest the capital gain in tax-saving bonds issued by the Rural Electrification Corporation Ltd. or National Highways Authority of India within six months of the date of sale. The bonds so issued will have a lock in period of three years. You can also save tax on the amount of capital gain provided the net consideration (i.e. Rs 20 lakh less expenditure, if any incurred wholly and exclusively in connection with the sale) is utilised for the purchase or construction of a residential house within a specified period. 

Defining agricultural land

Q. I own about two acres of land in a village near city, and I have not carried out any agricultural operations thereon for the past two years. What are the considerations for treating a land as agricultural land and whether the profit arising on the sale of such a land would be taxable? — Lal Singh

A. Agricultural land has not been defined in the Income-Tax Act 1961, (the Act). However, on the basis of judicial pronouncements the land must be an agricultural land at the time of the sale. True test to be applied for the purpose of ascertaining whether a land is an agricultural land or not is to find out the use to which it has been put or is being actually put. If it is used for agricultural purpose or even if the agricultural use has ceased but it is apparent that the land is meant to be used for agricultural purpose, it would be considered agricultural land. It matters very little how the subsequent purchaser intends to use land in question. Normally the following factors are to be considered while determining the nature and character of the land.

Whether the land was classified in the revenue record as agricultural and whether it was subject to the payment of land revenue.

Whether the land was actually or ordinarily used for agricultural purposes at or about the relevant time.

Whether such use of the land was for a long period or whether it was of a temporary character.

Whether the land, on the relevant date, had ceased to be put to the agricultural use, and whether, such cesser and/or alternative use was of a permanent or temporary nature.

Whether the land was developed by plotting and providing roads and other facilities. Whether there had been any previous sale of portions of the land for non-agricultural use.

It is not essential that all these factors should be present. A balanced view will have to be taken after taking into account all these circumstances in totality. An agricultural land is not treated as a capital asset for the purpose of taxability of profit arising on the sale of agricultural land provided such land is not situated within the jurisdiction of the municipality etc; or is situated beyond such distance, as is notified by the Central Government from the local limits of the municipality etc. Therefore, if the land owned by you is within the municipality and the population of the municipality exceeds 10,000, it will be treated as a capital asset and any profit arising on the sale of such a land would be taxable. 

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

Labour crunch

New Delhi: The construction sector is facing labour shortage of around 10 million persons on any given day and the situation will worsen in the next decade when requirement for workers is expected to go up three-fold, realtors body Credai said in New Delhi.

“The total requirement of skilled and unskilled labourers in the construction sector, including real estate, is 33 million per day. The shortage is around 30 per cent. We need to take proper measures so that things don’t worsen in the next decade when per day labour requirement will treble,” Credai’s President Santosh Rungta told PTI.

Increase in income from agriculture and growth in overall rural economy coupled with huge migration of labourers to the Gulf countries are impacting the steady flow of masons, plumbers, electricians and other skilled and unskilled job workers in the construction sector.

Rungta said the industry should gear up now on to mitigate the challenge, which could be compensated with the adaptation of latest technologies for construction.

“Technology is the need of the hour. We are not using the technology compared to the developers in developed nations.

Developers here are a bit reluctant as technology usage will increase their cost of capital, which they will not consider a good idea since 90 per cent of our housing requirement is from the low-cost segments,” he said.

However, as a fall out, a day may come when various parts of a building may be manufactured in a factory and a project will be assembled at the site.

“The existing scenario of less availability of workforce may also provide a room for the growth of the pre-engineered buildings. This is already being used in the high-end housing projects and commercial buildings”, he said. — PTI

Academy to provide manpower

New Delhi: In view of growing demand for skilled manpower in building and construction activities, Delhi Government is mulling setting up of a specialised institution in the city to provide skilled human resources for the sector.

The academy will impart training to masons and other workers engaged in constructing buildings and other real estate projects.

This was stated by Chief Minister Sheila Dikshit while presiding over a regional conference on skill development which was inaugurated by the Deputy Chairperson of Planning Commission Montek Singh Ahluwalia. She said the city government was also considering prescribing of standards for the builders to do away with problem of sub-standard constructions.

Ahluwalia, inaugurating the conference, stated that as per projection, by the end of 13th Five Year Plan in 2022, the country will be requiring 500 million trained manpower. He said in view of Government’s target to achieve 10 per cent growth rate, it was very important to enhance skills of the country’s workforce.

For transition of growth rate from 8 to 10 per cent, the country will be requiring a large number of skilled manpower, he said.

Ahluwalia said the Ministry of Labour has developed a modular skill development course and states must make efforts to accelerate the pace of developing skilled manpower.

Chief Secretary Rakesh Mehta stated that ITI students in Delhi have been given responsibility of maintenance of government buildings under “Earn While Learn” scheme under the government’s skill development mission. — PTI

Green House
Right Timeline
 It is best to follow the right practices to get the best out of your garden, writes Satish Narula

The gardening operations are all time specific. You can’t advance, delay or postpone gardening works. The package of practices has to be followed for best effect. If you are not prompt or on the dot, you will never get the intended quality, be it in flowers, fruits or vegetables.

Don’t hurry in gardening operations unless advised by experts. The time for planting bulbs is also not far, but if it is advised to plant bulbs in October then don’t be in a hurry to sow them in August or September, as most of the gardeners do.

During these days, the temperature is high and there is humidity in the atmosphere, as a result most of the time the bulbs rot. This happens mostly in the case of gladiolus. Also before sowing, treat the bulbs with bavistin etc (dissolved at two gram to a litre of water). You can keep the bulbs dipped in this for about two hours before sowing.

The time for planting the winter vegetables, too, starts from August and lasts till December. All through this time different vegetables can be grown and harvested.

But one thing where we falter is the right selection of varieties. It is not that any and every seed sown will give the desired result. The early months, i.e. from August to October are warm and after that there is fall in temperature. The winter vegetables growing time in most of the crops like carrot, radish, turnip, cauliflower, cabbage etc is divided into early, mid season and late season sowing.

You will never get the desired result if the early season variety is sown in the late season and vice versa. It is for these reasons that before sowing you have to ensure that correct variety is being sown. For this, you must contact experts of the agriculture universities or the department of horticulture located in different districts. One can also procure ‘Package of Practices’ for growing fruits and vegetable and follow its instructions for best results.

In case of winter annuals, we keep delaying the sowing of seeds with the result that the transplanting is delayed. As the winter time has very short day period, seedlings can’t develop fast enough. Then starts the severe winter time when most of the growth is suspended. As the weather starts warming up the seedlings start putting forth flowers even when the bed is not fully covered with the plants. You see patches and incomplete beds. So be prompt and sow the seeds by mid-September by all means.

This column appears fortnightly. The writer is a senior horticulturist at PAU and can be reached at satishnarula@yahoo.co.in

Fortnightly alert

This is the time when mango plants are usually attacked by stem borer which punctures the twigs near the terminal end making these dry up. Don’t forget that it is the terminal on which the flowers appear and the fruit is borne. It is, therefore, necessary to protect it. Spray thiodan (endosulfan), dissolved at two milliliter to a litre of water. Repeat the spray after a fortnight.

Realty Bytes
Pride Hotels to invest Rs 1,000 cr in 5 yrs

New Delhi: Mumbai-based hospitality company The Pride Hotels plans to invest Rs 1,000 crore in the next five years to open 10 new properties across India and expand the existing ones.

The company, which has around 1,000 rooms in its 10 properties at present, will have total of around 3,000 rooms when its planned expansion is completed. It is expecting revenues from the hospitality business to touch Rs 300 crore in the next five years from the current Rs 100 crore. “By 2015, we will have 10 more properties nationwide, including business hotels, resorts and luxury hotels,” The Pride Hotels, Chairman S.P Jain told PTI.

The group will invest Rs 1,000 crore in the next five years, of which Rs 150 crore investment has already been made, Jain added.

He said of the new properties, some will be owned and managed by the company, while some will only be managed by the firm.

“Of the ten new properties, three would be resorts and the remaining would be a mix if business and luxury hotels,” he said.

The company recently announced the opening of its tenth property in the commercial hub-Gurgaon.

At present the firm has properties at Pune, Nagpur, Chennai, Bangalore, Jaipur and Delhi.

The Pride Hotels is promoted by SP Group, which also has other businesses such as consultancy, financial services and construction, and has an annual turnover of Rs 300 crore. — PTI

Everest Industries’ profit up

New Delhi: Everest Industries Limited, one of the fastest growing building solutions companies, announced its financial results for the quarter ended June 30, 2010.

The company’s total sales turnover increased to Rs 199.65 crore from Rs 178.1 crore in this quarter. This is an increase of 12 per cent on a quarter–on–quarter basis. This growth was a result of volume growth of 8 per cent in Building Products division and 12.9 per cent in the Steel Buildings division.

The company’s operating profits rose from Rs 20.64 crore to Rs 28.22 crore. The Profit after Tax (PAT) increased to Rs 15.5 crore, a whopping 64 per cent increase over the last year.

“We are aggressively expanding our reach in the remotest of areas, increasing production capacities as well as introducing new products that enable speedy and efficient constructions. With these initiatives our position in the market is getting stronger and we are witnessing a surge in our revenue and operating margins,” said M. L. Gupta, Managing Director, of the company.

Everest Industries is amongst the early adopters of green building practices in India. It provides building products and building solutions for housing, commercial and industrial sectors in over 15 countries, 600 cities through five state-of-the-art manufacturing facilities, 31 sales depots and 14 offices. — TNS

Indiabulls net profit at Rs 20.5 cr

New Delhi: Indiabulls Real Estate has reported a consolidated net profit of Rs 20.5 crore for the quarter ended June 30, 2010. The company had recorded a net loss of Rs 24.3 crore in the corresponding quarter last fiscal, it said in a statement.

Total income of the company, however, increased to Rs 192.2 crore during the reporting quarter compared to Rs 49.2 crore in the same quarter ended June 30, 2009. — PTI

Office space market picking up

New Delhi: Led by the financial and IT sectors, leasing activity in the office segment is picking up across the country, mainly in Mumbai and Bangalore, realty consultancy firm CBRE said in a report recently.

The report on leasing activity during the second quarter of the year said the rent for office spaces will remain stable in the short-to-medium term as there is still excess supply in various micro markets.

“There is an improvement in (leasing) transaction velocity, especially in places like Mumbai and Bangalore, where financial institutions and the IT sector have regained some confidence and this has led to an improved take-up of space,” CBRE South Asia Chairman and Managing Director Anshuman Magazine was quoted as saying in the report.

The Mumbai market saw a spurt in enquiries for office space, with leasing demand driven by corporate consolidation and relocation to achieve cost savings.

The Bangalore office space market continued to stabilise, although landlords were forced to remain flexible when negotiating with tenants, as demand still lagged behind robust levels of availability.

“This will continue to put pressure on the rental values, which should remain stable or correct marginally in some locations in the short term,” Magazine said.

Following the global economic recession, the real estate sector, including the office segment, has been witnessing increased demand across the metros since the start of 2010.

Major Indian office markets continued to see growth in leasing activity, but rentals were largely unchanged or showed only incremental growth, as the quantum of vacant space outside the central business district areas remained significant, it said. — PTI

Subsidy scheme to boost demand
S.C. Dhall

In order to stimulate demand for credit for housing in the middle and lower income segment of population in the country, the government has proposed an interest subvention of 1 per cent on all individual housing loans of up to Rs 10 lakh, provided the cost of the unit does not exceed Rs 20 lakh. The scheme recognises that cut in interest rates has an important role to play in reducing EMIs of borrowers and in creating an additional demand for housing. All regions of the states and union territories in the country, including rural and urban areas will be covered under the scheme.

The scheme

Objective: The objective of the scheme is to provide interest subsidy on housing loan as a measure to generate additional demand for credit and to improve affordability of housing to eligible borrowers in the middle and lower income groups. The scheme is expected to provide relief to prospective home owners and improve home ownership in the specified target segment.

Eligibility: Interest subvention of 1 per cent will be available on housing loans up to Rs 10 lakh to individuals for construction/purchase of a new house or extension of an existing house, provided the cost of construction/price of the new house/extension does not exceed Rs 20 lakh. All such loans sanctioned and disbursed, during the period of one year from the date of publication of the scheme shall be eligible for the said interest subsidy.

Duration: The scheme will be in operation from October 1, 2010 to March 31, 2011.

Interest subsidy: Subsidy of 1 per cent will be defined as reduction in interest rate by 100 basis points per annum from the existing rate of interest for a particular amount and tenor. It will be applicable to the first 12 installments of all such loans sanctioned and disbursed during the currency of the scheme and will be computed for 12 months on the disbursed amount. The subsidy amount will be adjusted upfront in the principal outstanding, irrespective of whether the loan is on fixed or floating rate basis.

Implementing Agencies (IAs): The scheme will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with the National Housing Bank.

Nodal Agencies: The RBI and the NHB will be the Nodal Agencies for this scheme for SCBs and HFCs, respectively.

Terms for loan and subsidy: The interest subsidy of 1 per cent per-annum installment of the loan disbursement falling within the operating period of the scheme.

The interest subsidy will be calculated on the interest chargeable at the time of disbursement of the loan.

The agreed rate of interest would be arrived at by the IAs keeping in view the RBI/NHBs guidelines, if any, for loans up to Rs 10 lakh.

The borrowers may choose fixed or floating rate of interest.

The mode of disbursement of the loan will be decided by the lending IAs as per the requirement of the borrowers.

The IAs will deduct the subsidy amount upfront from the principal loan amount of the borrower and charge interest on the net amount of loan at the agreed rate of interest.

The amount of reduction in the principal amount as a result of interest subsidy will be explained to the borrower by the bank/HFC officials. IAs will provide each borrower, covered under the scheme, a statement which will make him/her understand the amount given as subsidy, how the subsidy has been adjusted and the impact of the subsidy on his/her EMIs.

It will be the responsibility of the IA concerned to ensure security of the loan amount.

The IAs will follow the appraisal, documentation, etc., as per their approved policies and procedures including those for risk assessment.

Claim admissibility: After sanctioning and disbursing the eligible loans, the IAs will claim disbursement of subsidy from the nodal agency by submitting their claims on the prescribed format on monthly basis. The subvention amount on the disbursed loan amount will be sanctioned to the IAs by the respective Nodal Agencies on monthly/quarterly basis on receipt of the claim and the necessary information in the prescribed format.

Final reimbursement claim on government: The final quarterly reimbursement claim format the IAs can be expected to be in the quarter immediately after completion of the one year from the date of notification of the Scheme.

Release of funds: The Government of India will release the subsidy amount to the Nodal Agencies based on demand for sanction of subsidy received from the nodal agencies on quarterly basis.

Utilisation certificates: The IAs will be required to ensure proper end-utilisation of the funds and to submit utilisation certificates, to their respective NA against the amount of the interest subsidy released to them. The utilisation certificate will be submitted in the prescribed form.

The writer is a senior banker

Need for a regulatory authority

New Delhi: The Ministry of Housing and Poverty Alleviation has stressed on the need for a Regulatory Authority for the realty sector.

Speaking on a function organised by realty body National Real Estate Development Council (NARDECO), S.K Singh, Joint Secretary in the ministry, said there is a need for a regulatory authority for the sector which, among other things, must take into account the “green” issues.

“The issue of capacity building amongst local authorities is very important because it is finally the municipalities who implement the building bylaws. The agenda of green buildings can be taken forward by a proper mix of demonstration,capacity building and fiscal incentives,” Singh said.

The Ministry of Urban Housing and Poverty Alleviation is in the process of a model real estate (Regulation of Development Act) to promote planned and healthy real estate development with a view to protect consumers interest as well as facilitate speedy urban construction.

The draft Bill was placed in the ministry’s website for comments.

The second draft would be placed soon seeking comments from all stakeholders before being finalised.

TERI Director General R.K Pachauri said that the concept of “green” should be extended to campuses, townships and large areas from simply individual buildings.

“Buildings have a large potential for reduction of greenhouse gas emission. Hence, the change in the building designs can make an enormous difference not only at local levels but at the global level,” he said. — PTI