BUDGET 2011
Expectations belied
Geetu Vaid

The realty sector is not all gung ho over this year’s Budget and it has elicited mixed opinions from industry mavens. The moves to raise priority home loan limit from Rs 20 to Rs 25 lakh and 1 per cent interest subvention for home loans upto Rs 15 lakh from the earlier limit of Rs 10 lakh have been welcomed by realtors and industry watchers as these will give a boost to the affordable housing segment. “The announcement...will enable to create a demand for housing in smaller cities, where housing is available for a ticket size of less than Rs 25 lakh. This is expected to increase the development momentum in such locations,” Cushman & Wakefield India Managing Director Anurag Mathur said.

However, according to the country’s largest realty consultant Jones Lang LaSalle India Chairman and Country Head Anuj Puri, the larger issues affecting the realty sector had been ignored by the FM, “at this sensitive stage of revival and growth. He said firms such as Unitech and Ansals, which are rolling out budget housing, will be benefited by increase of volumes. “The 1 per cent interest subvention for home loans up to Rs 15 lakh will come as a relief to home loan borrowers from the LIG segment,” he said, adding that raising the priority home loan limit was also good news for the LIG segment.

President of NAREDCO

and CMD of Omaxe group Rohtas Goel, also opined that the Budget reflected low income and middle income housing thrust. He said, “Affordable housing development is expected to be encouraged with the announcement of a new Housing Mortgage Guarantee Fund which will cover the risk of Housing Finance Companies for lending to less advantaged sections of society”. Terming these measures as a determined and appropriate policy initiative of the Finance Minister Goel emphasised that providing developed land by the state governments was very important for giving a push to low cost housing as envisioned by Finance Minister in his Budget speech.

“While the Finance Minister seems to have done a fine balancing job under trying circumstances, astutely managing fiscal deficit while keeping an eye on growth, the Budget does fall short of ushering in big ticket reforms in issues that would have provided an impetus to the economy”, says Getamber Anand, Vice President CREDAI and MD, ATS Group.

The major grouse of developers and realtors was that the sector had once again not been granted industry status. Amit Raheja, Director, Investors Clinic said, “The biggest disappointment for this sector is that it has not been given industry status even when it contributes majorly to the country’s GDP. The sector deserves industry status as it provides support in capital gains and provides huge employment opportunities”.

“By not declaring the real estate as an industry, the Finance Minister has deprived this sector of an easier bank financing and several other industrial benefits” , said Ashwani Prakash, Executive Director, Paramount Group of Companies.

The industry stakeholders are thus, taking most of the measures with a pinch of salt and would like to wait to see their full implication. Reflecting this overall sentiment Anand commented, “While tax incentives for affordable housing, under the notified schemes have been touched upon, we would have to wait for the finer print to emerge. On the input side, we understand there is a duty cut in cement and steel prices but other related issues should have been dealt with to positively impact the common man at the end of the day.

It remains to be seen how the income tax exemption on affordable housing will impact the industry in the long run. On the whole, while the Finance Minister has done a fine balancing act of the macro economic situation, the real estate sector has the right to feel let down in this exercise”.

Better infrastructure will help the sector as new micro-markets develop into sustainable urban destinations and metros become better cities. Besides, mortgage risk guarantee funds for this segment are bound to provide the required safety net to the financial institutions that provide home loans. This will result in higher fund flow to this segment. Another key positive is the e-Stamping initiative that stands to bring in sanity in records for the sector. This is a decent start and a move to digitise land records will give a boost to the sector. Finally, a reduction in corporate tax surcharge from 7.5 per cent to 5 per cent will marginally benefit realty as well. Sanjiv Saddy, Executive President, Emaar MGF There is nothing for the builders in the Budget. The builders had hoped to get some relaxation after slowdown of two years, but the Finance Minster has offered nothing substantial. So, the Budget is a disappointment. Cement companies are making a cartel to increase the prices. The government has not been able to control the prices of cement. Due to this the construction cost is increasing making it difficult to provide affordable houses to customers. R.K. Arora, CMD of Supertech Group Given the fact that the housing shortage, especially in the affordable segment in the major urban centres is a big challenge for the real estate sector, the government was expected to announce some major incentives to spur growth. Given the big multiplier effect that the real estate sector has on the economy, it is a missed opportunity as far as the scope of this Budget is concerned for the real estate sector. Overall the Budget has not been exciting for the sector and the FM has lost an opportunity Om Chaudhry, CEO, FIRE Capital Fund The allocation of Rs 58,000 crore to Bharat Nirman projects is a very good move by the union government towards rural development of our country. As the project also includes development of rural housing, this allocation is going to help the developers in developing quality housing projects in rural parts of India. Rupesh Gupta, Director, JM Housing

Jammu in a jam
Ravi Krishnan Khajuria

Unplanned development, encroachments and uncertainty over property deals have made the realty scene shaky in Jammu. Unplanned development has taken a heavy toll on the fragile ecology of the winter capital of J & K courtesy a lax state government that remained in a state of inertia for over two decades as land mafia, in connivance with politicians and some high officials, usurped government land, including gair mumkin khuds (unorganised wetlands), in the region.

Jammu, which over the years has become a land of refugees, witnessed a population explosion with the mass exodus of Kashmiri Pandits from Kashmir in 1989.

"Obviously, there was need for land to build residential colonies to house the displaced population. But in the absence of a proper housing policy, land mafia, which enjoyed the patronage of politicians and police officers, encroached upon government land, including unorganised wetlands," said an environmentalist.

Showing scant concern for the fragile ecology, the land mafia started converting unorganised wetlands into plots to make huge profits. "All this was done in connivance with some disgruntled politicians, police officers and Revenue Department officials. About 14,539 hectares of forest land has been encroached upon in the state. Forest land has been encroached upon in the Bhatindi, Sunjuwan and Sidhra areas of Jammu", he added.

In fact, nearly half of the population of Jammu today lives in colonies that have been built on unorganised wetlands and forest land.

The activity is going on unabated even now. "You can see a large number of earth movers in action as you drive to the outskirts of the city or along the Jammu-Pathankot highway. These machines are being used to flatten hillocks and level khuds in order to carve out plots that are sold to naïve and gullible customers", said Bhaskar Gupta, a bank employee.

The government, however, finally seems to have woken up to the gross violations that have been going on in the region. After remaining a mute spectator for years, the government has now slapped the Public Safety Act on land grabbers and has also imposed a ban on 'gair mumkin khuds' (unorganised wetlands). Revenue Minister Raman Bhalla has given an ultimatum to land grabbers to vacate the land in their possession voluntarily. But this sudden change of heart on government's part is being viewed with skepticism by locals. "May I ask the government why it remained in a state of inertia when these people were flattening hillocks and leveling khuds all these years", asks Gupta.

When asked to name a few khuds that have been converted into residential colonies in Jammu, Gupta said, "Bhatindi, Sunjuwan, Channi, Paloura, Patoli, Ban Talab, Chinore, Toph Sherkhania, New Plots, Gurah Brahmana, Bakshi Nagar and many more localities had ponds and unorganised wetlands, which have disappeared over the years and the 'credit' goes to real estate developers.

The government's move has, however, dealt a strong blow to people like Ashwini Sharma who have purchased or given advances to realtors to buy land in the controversial areas.

"By banning gair mumkin khuds, the government has increased the woes of people like me, who have given advance money to the real estate dealers," said Sharma, who has paid Rs 1.50 lakh as advance money for a one-kanal plot in the Gurah Brahman area. "The plot has a genuine owner and proper revenue record so I never imagined that there will be any problem. But now in the wake of this ban I may lose my money as well as well the hope of owning a home", he said.

Making a plea for some sort of leniency he said, "This government has regularised unauthorised colonies in the winter capital and, therefore, I see no harm if it allows issuance of Fards and subsequent registry in case of plots having genuine owners and proper records in the Revenue Department. It will certainly provide relief to people like me who have invested money to own a house in these areas".

In Jammu not only refugees from Pakistan have settled in clusters but Kashmiri Pandits and militancy-affected families from Doda have also settled here over the years. "In such a scenario when every second individual wanted to settle down in peaceful Jammu, the government should have put its act together much earlier", he added.

Sharma, who runs a grocery store, alleges that certain influential politicians had given the power of attorney for plots carved out of gair mumkin khuds to real estate dealers. After certain sections of media exposed land scams in Jammu, the government has asked the Jammu Divisional Commissioner, Dr Pawan Kotwal and deputy commissioners to identify the land grabbers and take stern action against them.

"Though the Chief Minister Omar Abdullah has ordered a probe, tell us where should we go in the absence of adequate land for residential purpose," asks Vikas Sharma, a real estate dealer. "Will this government flatten thousands of houses that have been constructed over the years in and around the city", he asked.

There are always black sheep in every profession but the government's hasty decision has ruined our business, he added. According to Sharma many plots in such khuds have proper registration in the revenue records and have genuine owners. At least the government should remove ban from plots that have genuine owners and proper records in the Revenue department, he demanded.

The Deputy Commissioner of Jammu, Sanjeev Verma, however, clarified that as of now the government had banned further sale and purchase of gair mumkin khuds. "The issue has now come into public domain and hence the government is serious about it. For the time being the further sale and purchase of unorganised wetlands has been banned to check the malpractice," he said.

Regarding the already existing colonies the DC said that as of now no decision has been taken by the government.

TAX TIPS
No need to file Wealth Tax returns

Q. I recently constructed a commercial complex in Faridabad 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?

— Devender

A. Wealth tax is leviable in respect of net wealth of every individual, HUF and company at the rate of one per cent of the amount by which the net wealth exceeds Rs 30,00,000. Such net wealth is to be ascertained as on the valuation date i.e. March 31. The increased limit of Rs 30,00,000 is applicable for assessment year 2010-11. The limit was Rs 15 lakh till assessment year 2009-10. However, such net wealth is to be computed after considering the value of those assets which are specified in Section 2(ea) 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 not including any property in the nature of commercial establishments or complexes. In my opinion a commercial complex, though covered within the term building for commercial purposes, will have to be excluded from the levy of wealth tax as being a property in the nature of "commercial establishments or 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, there should not be any necessity for you to file a wealth-tax return.

True value

Q. I am the owner of some land in an area situated within the city. This land has considerable value. I have filed Wealth Tax return on the basis of a 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 the Valuation Officer?

— A.K. Mehrotra

A. In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets, which can be defined as "wealth" for the purpose of levying 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 an 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 of Schedule III, 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, 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 the 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.

Claiming exemption

Q. I had constructed a house in 1980. I want to sell this house and invest the amount received to buy another residential house. I will be taking a joint housing loan with my son which would be utilised for buying the new residential house. What should be done so as to claim the tax exemption in respect of the capital gain? Apart from such exemption of capital gain arising on the sale of the earlier house, will I be entitled to claim tax benefit of repayment of the loan?

— Dinesh

A. The capital gain arising on the sale of the house constructed in 1980 would be exempt from tax provided a new residential house is purchased within one year before or two years after the date of sale of the old house. In case you are not able to utilise the capital gain in purchasing a residential house before the due date of filing your tax return for the year in which the sale take place, you should deposit the amount of capital gain in a bank account under the capital gain scheme. The amount so deposited will be reckoned for the grant of exemption. The amount so deposited can be utilised for the purchase of the house within the period specified hereinabove. You will be entitled to claim deduction in respect of the repayment of the principle amount of loan in proportion to your share in the residential house property. The claim for deduction of the interest paid/payable on such loan against income of house property shall also be allowed in proportion to your share in the residential house property.

Rent and rebate

Q. I have taken a home loan from bank to buy a flat which is ready for occupation. I am getting house rent allowance from my employer. Is it possible to claim deduction in respect of the HRA along with deduction allowable under Section 80C and Section 24 of the Act?

— Kulbhushan

A. Section 10 (13A) of the Income-tax Act 1961 (The Act) provides for exemption of any special allowance specifically granted to an assessee by an employer to meet expenditure actually incurred on the payment of rent in respect of residential accommodation occupied by him, to such an extent as may be prescribed having regard to the area or place in which such accommodation is situated and other relevant considerations. No exemption is allowable to an assessee in case residential accommodation occupied by him is owned by him or he has not actually incurred expenditure on payment of rent in respect of residential accommodation occupied by him. In view of the above provisions of the Act, you would not be able to claim exemption in respect of house rent allowance as the residential accommodation would be owned by you and further you would not be making any payment of rent in respect of the residential accommodation intended to be occupied by you.

Pledging bonds
Not a wise move

Q. I sold a plot in January 2007. After indexing the cost of that plot a long-term capital gain of Rs 10 lakh has been earned thereon. I had purchased the requisite tax-saving bonds within the period of six months of the date of transfer of the plot. I am in need of some money now. Can I offer these bonds to bank as a security for obtaining a loan? Will it have any effect on the taxability of the capital gain earned on the sale of the plot about which I have sought an exemption?

— Ashok

A. Section 54EC of the Act provides for the exemption of capital gains from taxability in case bonds specified in the said Section are purchased within six months of the date of transfer of a capital asset.

The Section specifically prohibits the transfer of such bonds within a period of three years from the date of purchase of such bonds.

It has also been provided in the said Section that even taking a loan on the security of bonds or otherwise converting these bonds into money within three years from the date of purchase of the bonds would be considered a transfer of the bonds. It would not be advisable to take the step of offering these bonds to bankers as a security for obtaining the loan. I may add that in case the action as envisaged by you is taken within a period of three years of the date of sale of a capital asset, the exempted capital gain will become taxable as long-term gain in the year in which such bonds are transferred or converted (otherwise than by transfer for) into money.

HUF benefit not applicable

Q. I have a flat which I have given for rent. Is it possible to throw the let out flat in an HUF so that the income there from can be taxed separately?

— Pankaj

A. The facts in the query are incomplete as it has not been indicated whether an HUF under the provisions of the Act is already in existence. I have, for the sake of answering your query, presumed that the same is in existence. According to Section 64(2) of the Act where any member of an HUF converts his personal property by an act of impressing such property after December 31, 1969, as a family property otherwise than for an adequate consideration, the income from such property will continue to be treated as the income of the person who has converted such property into an HUF property. In view of these provisions, you will not be able to achieve the purpose for which you intend converting the let out flat into an HUF property.

The writer can be contacted at sc@scvasudeva.com

DECOR CORE
A recipe for perfection

Stylish, functional and timeless designs always exemplify the beauty of a home and when these aesthetics are incorporated in designing the heart of your house — your kitchen, there’s not much left to ask for. To lend your kitchen a striking new look along with the style and comfort, Johnson Kitchens has launched a new range of modular kitchens, `Small is Wow!’.

Johnson Kitchen is a product offering from H & R Johnson (India) which is a division of Prism Cement Limited. Johnson and is widely available at their `House of Johnson’ retail stores across the country and are available from Rs 70,000 onwards.

The new range of modular kitchens is made to suit every taste, meet every need and fit into any space. From the tiny, functional kitchen floor plan to the larger, average architectural kitchens, these modular kitchens promise tocaptivate homemakers with pure emotion, design highlights and colour trends.

These function oriented and elegant kitchens are available in varying sizes and in a spectrum of colours that leave ample room for the individuality of owner to come through. From bold to subtle, trend-setting to natural colours, Johnson Kitchens are available in plain/solid colours or combinations. “The unique feature of Johnson Kitchens is that it is as unique as our customers, Customized to every need, taste, choice and budget,” said Vijay Aggarwal, Managing Director, Prism Cement Limited.

GROUND REALTY
Mirror, mirror on the wall
Jagvir Goyal

Mirrors are important functional as well as decorative elements in any building be it a home or a commercial complex. It is hard to resist a mirror and pass by it without checking one’s appearance, clothes, hair etc. When used liberally and artistically on walls, mirrors work wonders and enhance the aesthetic appeal of a home. Full length mirrors can add a dramatic effect and dimension to any room. Mirrors should, therefore, be used liberally in a house.

But all mirrors are not of good quality. Certain points have to be considered before selecting mirrors for your home. A mirror should be corrosion free; should have excellent clarity; should have no distortions; and, if possible, should be eco-friendly.

Corrosion-free mirrors

The presence of copper in the silver coating on the glass sheet used for making a mirror usually results in corrosion in a mirror. This corrosion occurs quickly in moist and humid conditions and causes ugly black spots in a mirror. When this happens, the user has no option but to replace it. Reputed mirror-manufacturing companies ensure that the silver layer that is deposited on a glass sheet is completely free of copper traces. Check this point from the seller or consult company brochures which usually mention this point specifically if it is observed during the manufacturing process.

Clarity

The clarity of a mirror depends on the quality of the base glass sheet. Glass sheets have different qualities and the ones having minimum concentration of iron are considered the best. These glass sheets are extra clear and the mirrors made from them are sometimes termed as ‘extra clear mirrors’. These mirrors produce better reflection and look distinctly clearer than others.

Distortion-free mirrors

Distortion of image in a mirror is again linked to the quality of glass sheet used in producing it. Impurities and inconsistencies in glass sheet lead to distortion of image in the mirror made from it. One should carefully examine a mirror for this important point as a mirror producing a distorted image can be very disturbing and irritating. This aspect can be checked by moving up and down in front of the mirror slowly and carefully examining the changes in image.

Eco-friendly mirrors

Whether a mirror is eco-friendly or not doesn’t directly affect its user, yet one should consider this aspect as an eco-aware citizen. Eco friendly mirrors have lead-free paint coatings on the back. The companies producing such mirrors always highlight this point. Such mirrors should be preferred.

Safety features

Certain mirrors have this additional feature now. These mirrors have a safety backing which prevents mirror fragments from spreading around in case of breakage. Such mirrors are termed as ‘safe’ mirrors. These should normally be preferred for room and wardrobe doors.

Perfect fixing

It is very important to fix mirrors on walls in a proper manner. The wall must be perfectly plain. Fixing a mirror on a wall with a slight curvature may result in cracks in the mirror. In such cases, a small 6 to 10 mm gap needs to be left between the wall and the mirror. Mirrors are mostly fixed either by using screws or by framing and hanging them. In case some adhesives are used to fix them, then care should be taken to ensure that the adhesive used is compatible with the protective layers at the back of a mirror. Adhesives like Fevicol, Araldite damage a mirror badly. The adhesive should not contain any acids. During fixing, take care that back of the mirror doesn’t get scratched.

Essential locations: Mirrors are a musr in bathrooms. A small bathroom can be given a spacious look by installing a full-length mirror on one of the walls. Proper placing of lights also enhances the look of a bathroom mirror. However, light source should never be provided opposite a mirror. It is best to provide 20 W lights at 1 ft interval all around the periphery of your wall mirror. As one doesn’t spend much time in front of a bathroom mirror, the extra power consumption won’t be significant.

Barred location: Don’t put a mirror above the study table or in the study room as it will act as a distraction.

Improving dull space: A dull space can easily be improved and made bright and ‘inviting’ by adding mirrors and lights to it. Identify such a space or room, add mirrors to its walls and position lights in such a manner that the mirrors add brightness to the space through reflection.

Mirror at the landing: Put a big mirror on the wall of the staircase landing. You and your guests will love to pass by it while going up and down. Add a lamp on top of this mirror, angled to throw light on the face of the person climbing the stairs.

Vaastu factorsays: For those, who believe in Vaastu, mirrors should be fixed on walls in north and east. As per Vaastu, having mirrors on south or west walls hampers the flow of positive energy through the house and has a bad effect on children in the house.

(This column appears fortnightly)

LAUNCH PAD
DLF Valley

The DLF Group announced the launch of third phase of its DLF Valley project in Panchkula earlier this week. DLF Valley is the group’s first integrated township project in the region and was launched in February 2010. It is located in the Pinjore-Kalka Urban Complex, Sector 3. Speaking on the occasion Rahul Mehta, Executive Director (North), said, “We are going ahead with the sale for the third phase due to positive response from customers. The third phase will have independent floors and some villas. As many as 200 units are on offer and these range from 1400 sq ft to 4,200 sq ft in area. The price is about 4000 per sq ft”.

Out of the total township area of 222 acres, more than 118 acres was sold in its phase I and II. Close to 1,700 low rise apartments here have already been sold. The township will have close to 5,000 homes. Talking about the group’s commitment to provide possession in time, he said, “The development work is in full swing on the site and leveling operations are nearly complete. The main construction work is expected to start soon. Work on the club house and neighborhood market places will also begin simultaneously so that by the time the owners start getting possession of their homes by early 2013 most other facilities of the integrated township are already in place.

North Eye

Supertech Limited has announced the launch of North Eye project, which will be North India's tallest residential development. Standing at 255 meters with 60 floors, the project will come up in Sector 74, Noida.

Spread over an area of 9 acres, North Eye will be built in three parts East wing, West wing and Central Tower.

The project will have apartments and condominiums of different sizes in the price range of Rs 35 lakh to Rs 2.25 crore. The possession of the project will be given in 42 months and the total investment on this project is Rs 600 crore.

The project will have different facilities like shopping areas, restaurants, club house, swimming pool, etc on different levels.

Check Inn'

Mumbai-based real estate company Shree Naman Group has announced the launch of its first hotel brand 'Check Inn' in the mid-scale segment.

The group’s subsidiary, Shree Naman Hospitality has officially launched a 43-room hotel here under the new brand with plans to open similar properties in Mumbai and Bangalore in the next two years.

“We are launching the 'Check Inn' brand of mid scale hotel. We have plans to open more properties under the same brand across India and launch other brands also to expand the portfolio,” Check Inn Hotels Chief Executive Officer Hemal Modi said.

He said the company will not own the new property but will operate it and has also signed up similar agreements with realtors in Mumbai and Bangalore to operate hotels under the same brand.

“The properties in Mumbai (65 rooms) and Bangalore (70 rooms) are currently under construction,” he added.

The new hotel in Delhi will provide select service accommodation to customers with tariffs starting from Rs 4,999 per room per day.

Shree Naman Group also has tie up with Accor Hospitality and is currently developing a five star hotel property under brand 'Sofitel' and a three star business hotel under the economy brand name 'ibis' in Mumbai.

“The property under Sofitel brand will be operational by the second quarter of next fiscal,” Modi said. — PTI

Launch pad
Legend Heights

Innovative Developers have launched Legend Heights — a mega commercial project with the investment of Rs 250 crore in Gurgaon. The project will be completed by December 2012.

With a total area of 4.5 lakh sq ft , Legend Heights, an office-cum-shopping complex, will be a part of a mixed use development. This will have 140 keys international chain of Hyatt group of hotels, Grade A office space for MNCs, Indian corporate, retail chains, consultants, service providers, banks, financial institutions, insurance and travel companies, entrepreneurs’ corporate retail, hyper markets and much more.

As per info given by the developer

WOMEN IN FOREFRONT
Dream builders
As the world celebrates International Women's Day on March 8, Pradeep Sharma profiles two women builders, who are creating ripples in the region's real estate scenario by their out-of-box thinking and innovative projects

Though the construction industry has traditionally been considered the exclusive domain of men, some women have carved a niche for themselves in the highly-competitive real estate sector.

While Archana Sanghi, a homemaker-turned-builder emerged on the real estate scenario by floating the first-of-its-kind all-women cooperative housing society - Parvati Durga Cooperative Group Housing Society in Panchkula, Ritu Singal of the Raglan Group is credited with creating low-cost housing projects in Chandigarh's periphery.

A DREAM AND A VISION: Archana Sanghi at Parvati Durga Cooperative Group Housing Society in Panchkula

"When we initiated the process for an all-women society about 15 years back, many scoffed at the idea. However, I was determined to set up an exclusive housing society of the women, 'for the women and by the women' with state-of-the-art housing facility," says Archana.

"With the solid support of my husband, I have tried to bring a fresh perspective with the Parvati Durga project. Being a homemaker myself I am tuned in to the specific needs of a woman who takes pride in her homestead. We are sensitive to the actual needs of the people who will be inhabiting these dwelling units and have given each and every member the freedom to understand the material being used, the reasons for its use and also the choice to give their own specifications," she says with pride.

The case of Ritu Singal, L.L.M. Gold Medalist and Managing Director of Raglan Infrastructure Limited, is no different. Overcoming personal tragedy, the untimely death of her husband, she took the charge of Raglan business with grit and determination in 2007. She entered this male-dominated corporate world with a determination to change things in her favour amidst the most unfavourable circumstances. Her remarkable ability to smile in the face of adversity instilled new confidence to people working with and for her.

She has won the trust and confidence of customers by successfully handing over the houses after 1½ years of legal battle. The sale volumes which dropped to $ 6.81 million from $ 16.25 million that time, rose again to $ 11.42 million last year and stand at $ 18.66 million today, in a time span of three years.

"Affordable quality housing is the need of the hour. At Raglans, we realised this long ago by initiating the housing projects in Chandigarh's vicinity," Ritu says.

Success in their ventures has paved the road to achieve bigger goals for these gritty women as they have bigger plans for future. Not resting on her laurels, Archana is toying with the idea of coming up with international housing project for women and Ritu is in the process of diversifying her real estate empire.

Putting SEZs under MAT purview
Unfair move

The real estate sector is unhappy at special economic zones (SEZs) being brought under the purview of minimum alternate tax (MAT) in the Budget.

This "basically diminishes the benefits that SEZs offer for developers over other commercial real estate asset classes," Jones Lang LaSalle India Chairman and Country Head Anuj Puri said.

MAT on SEZ developers is advanced by one year, while it was to be implemented under the Direct Taxes Code from April 1, 2012, the advancement of this tax by one year could be a dampener for developers of SEZs.

"This will increase the scepticism in the minds of SEZ developers about the future tax benefits of developing an SEZ," Knight Frank India Vice-Chairman and Managing Director Pranab Datta said.

Leading developer Niranjan Hiranandani said "already some of the SEZs have started closing down and being surrendered. With the imposition of MAT, more will surrender".

According to him, projects where the government has given long-term commitments and where developers and industries have invested money, the tax should not be imposed.

"Imposition of MAT is unfair as it is directly opposite to the stated policy of the Government which has encouraged setting up of SEZs... it (tax) could be imposed where new projects are undertaken so that they can be based on the new tax rate," Hiranandani said. — PTI

Country’s first health mall

A one-stop solution for all medical and health needs — from doctors, hospitals, ayurveda centres, pharmacies and even insurance referral units — will open in a 10-storey mall in Kochi.

The BCG group, a Rs 500-crore business conglomerate, is building the country’s first multidisciplinary health mall here and it will be open by August.

Spread over 110,000-sq ft, the mall will include retail stores dealing with pharmacy, optical ware, skin care products, cosmetics, ayurvedic, herbal, organic, health foods, health and medical equipment, Rekha C. Babu, CEO of BCG Group, told reporters.

A separate floor will be for allied services where medical colleges, hospitals, ayurvedic centres and insurance companies can set up their referral centres.

“Medical colleges that want to inform students about its facilities or a hospital which wants to educate people on latest treatment procedures can also use this space,” she said.

The fourth and fifth floors will have wellness clinics and rejuvenation centres.

“Six more multiple malls under the brand name BCG Health Square will come up across the state in the next five years. Such health malls are found in Singapore, Malaysia, the US and Europe,” she added.

The BCG Health Square will have 44 rooms in the sixth and seventh floors and private clinics on the eighth, ninth and 10th floors.

These spaces can accommodate doctors who want to set up their own independent practices with the option of utilizing centralized services like patient management desk, secretarial assistance and call monitoring managed by the company, she said.

There will also be adequate parking space.

The BCG Group was founded by Babu C. George in 1980 and forayed into real estate business in 2003.

The company has developed more than 8.5 million sq ft of commercial and residential projects across Kerala, a company statement said.

The group has also diversified into education and healthcare sectors, it said. — PTI