Colony culture 
A large number of approved colonies have given a boost to the realty sector in Barnala, reports Shariq Majeed

Barnala, an important town of the Malwa region, seem to be blinking brightly on the radar of realtors as decks have been cleared for a large number of colonies (eight since 2009) in the town. The realty sector here has gained momentum for the past one year and the main catalyst for this has been industrial growth in the area. The presence of big industries in the form of two units of the Trident Group at Sanghera and Dhaula and a unit of Standard Combines Private Limited have given a boost to the realty sector here. Besides this, the changing tastes of people as far as choosing a home is concerned, has created a healthy demand for well planned colonies. Such is the impact of industrialisation and the fascination of people for aesthetically designed homes in spacious surroundings that developers from Delhi and other places are also thronging this town and are offering projects with world class amenities. Leading this march is Delhi based builder Dynamic Private Continental private limited. The group has come up with "Dynamic Homes", a PUDA-approved colony on Dhanuala road here.

Rupinder Singh, Assistant Manager of Dynamic Private Continental private limited says, "Barnala is home to our state-of-the-art residential, gated colony. Comprising independent plots and group housing, the residential community is spread over an area of 20 acres. The development boasts of an 80 ft wide main road and 45 ft wide arterial roads. Unlike the crowded residences in the city, this residential community offers over 50 per cent open spaces and green areas. The well-designed roads are lined with pedestrian pathways and the pollution free environment is full of green trees and parks. Apart from this, 24x7 water supply, power backup and underground power cables have also been provided for. Convenience shopping, nursery school education and a community club and swimming pool have been provided". The construction work has been in full swing at the site since November 2010.

He added that the colony has around 200 plots of 100 to 350 sq yard specification. The current price is between Rs 6,000 and Rs 7,200 per sq yd.

When asked what had brought the Delhi-based builder to a sleepy town like Barnala, Rupinder Singh says, "Barnala has a strong industrial base which has increased the buying power of the people here substantially. Besides people, too, have developed a taste for approved colonies with broad roads, parks, swimming pools and health clubs and they don't mind spending good money on these".

Ravinderjeet Singh, who runs an educational institution on Kacha college road, says, "I bought a 150 sq yd plot in Dynamic Homes colony at the rate of Rs 6,250 per sq yd. The facilities promised by the builders are amazing. My parents are aged and I want them to live with me in a place that is not like the congested areas of Barnala city and where there is less pollution and more greenery and where they can relax".

Not to be left behind in this race, the local colonisers, too, are benefiting from the new trend.

P.Lal Builders Private Limited is coming up with three colonies (one of which has already been approved and two others are in the process of getting an approval). Pyara Lal Raisar waale, who owns this group, says, "We have come up with three colonies West City along the Bajakhaana road, Rahul Delhi Enclave along Raikot road, both in Barnala and Gen X City colony in Tappa".

West City, which is a PUDA-approved colony, has an area of 10 acres and has 114 plots of different specifications. The price of plots in West City is around Rs 12,000 per sq yd. Most of the plots in this colony, where construction work started in September last year, have found buyers. Rahul Enclave, which will be approved very soon, is spread over an area of 10 acre. "We will start the sale of plots as soon as we get the approval", said Pyara Lal. The Gen X City in Tappa is spread over an area of 13 acre and construction work is going on there too, said Pyara Lal. He added that they are providing facilities like park, wide roads, street lights, sewerage treatment plant, fire extinguishing system and intercom facilities in the colonies.

Commenting on the recent trend in favour of approved colonies in Barnala, Pyara Lal says "Barnala used to be part of Sangrur district but now it has become a district and a number of government offices have come up here, which has brought more people to this town. The demand for residential units has increased and as people want to live in organised and well developed areas, a number of such projects have come up here". Jeevan Kumar, Managing partner of Ganpati builders and developers, who have come up with approved colony Ganpati Enclave along Handiaya road, says, "The response to the new approved colonies has been amazing. We started construction in our project in November 2010. At this time we have sold almost all plots in the colony. We have taken care of all the facilities in the colony including water supply, parks, wide roads, sewerage system etc". 

Barnala has a strong industrial base, which has increased the buying capacity of the people. There is no dearth of customers for approved colonies with broad roads, parks, swimming pools and health clubs. People don't mind spending good money on these facilities. — Rupinder Singh, Developer 

Industrial Advantage

* Barnala has got some big organisations such as the Trident Group, Malwa Cotton, Geeta Threads etc.

* Two leading combine manufacturers of India — Standard Combines, and Balkar Combines are in Handiaya village, which is about 5 kms from here.

* Barnala has well known agricultural market for the sale of wheat, paddy, cotton and maize.

* Also known for manufacturing modern agricultural implements. 

Price Index
BARNALA

ASTHA NAGAR 25,000 TO 30,000

AMAR COLONY 8,500 TO 9,000

GREEN CITY 13,000 TO 14,000

IMPROVEMENT TRUST SCHEME

a) 16 ACRE 20,000 TO 22,000

b) 22 ACRE 30,000 TO 34,000

c) 25 ACRE 19,000 TO 22,000

JAIN COLONY 18,000 TO 20,000

KRISHANA ENCLAVE 9,000 TO 10,500

MAHESH NAGAR 11,000 TO 12,500

PUNJABI BAGH 12,000 TO 13,000

RADHA RANI COLONY 9,000 TO 10,000

RAM BAGH ROAD 7,000 TO 8,000

VISU NAGAR 10,000 TO 11,000

Price in Rs per sq yd

The prices are indicative only Source: Nirmal Infrastructures. Mohali

nirmahttp://linfrastructures@yahoo.com

TAX TIPS
The writer can be contacted at sc@scvasudeva.com
Husband's share

Q. My mother was a Haryana government employee. A plot measuring 10 marlas in Sector-18, Chandigarh, was purchased in her name in 1992 from Estate Office (UT), Chandigarh on lease for 99 years. She constructed a single-storey building on the said plot by raising housing loan from her department. My mother expired in 2008 without making any Will. Legal heirs of the said property include:

* My father, aged about 50

* Myself, aged about 34 (married)

* My brother, aged about 30 (married)

* My sister, aged about 26 (married)

Me and my brother are living in the above mentioned property along with our families.

My father, who was also a Haryana Government employee took VRS on March 31, 2008. He remarried a widow in January, 2009. We have not accepted this marriage and he severed all ties with us. He has been living in Kurukshetra with his second wife since 2009. He bought a new house in Kurukshetra in September 2009. While in the Chandigarh house that is in the name of our mother, he has kept one room locked for his use. Now, all three of us (me, my brother and sister) intend to apply to the Estate Office, (UT), Chandigarh, for the transfer of 100 per cent lease rights of the above-mentioned property in our name in equal proportion (33.3% to each) excluding the name of our father from the above list of legal heirs on the plea of his second marriage.

Kindly guide me whether we should apply for 33.33 per cent lease rights to each excluding our father or 25 per cent lease rights to each including our father. Kindly indicate the relevant Section of the Hindu Marriage Act/Hindu Succession Act/ or any relevant court decisions in support of your answer.

— Manav Sharma

A. General rules of succession in case of a female Hindu dying intestate are contained in Section 15 of the Hindu Succession Act, 1956. Such rules provide that the property of a female Hindu dying intestate shall devolve firstly, upon her son and daughters (including the children of the any predeceased son or daughter) and the husband. The order of succession of the distribution of such a property is laid down in Section 16 of the said Act Rule (1) contained in said Section provides that among the heirs specified in sub-section (1) of Section 15, those in one entry shall be preferred to those in any succeeding entry and those included in the same entry shall take simultaneously. In view of the above provisions all of you, including your father, will have 25 per cent share in the property of your deceased mother who died without making a Will. It may, therefore, not be possible for you to get the property mutated only in the name of your brother, your sister and yourself.

Short term gain

Q. I was allotted an industrial plot in Mohali by PSIEC in 2004 with the condition to start production within two years of development. The plot was developed on December 1, 2008 and a letter was issued to me on July 29, 2009. I had taken possession in the same month. The full payment of Rs 9 lakh had been made in 2004 for the one kanal plot. I also paid Rs 50,000 in 2005 for additional one marla area added to the plot.

What will be my tax liability if I sell the plot for Rs 90 lakh now? How can I save tax by investing in property or otherwise?

— Dial Singh

A. You have indicated in the query that the possession of the plot was taken in July, 2009. The capital gain arising on the sale of such a capital asset within two years of taking the possession would be in the nature of a short-term capital gain. Such short-term capital gain would be treated as part of your total income and would be taxable at the normal slab rate applicable to your total income.

Safe Transfer

Q. I shall feel obliged if you clarify: property transaction involves two types of money first through cheque/ draft i.e. bank transaction and the other cash. How can one send the cash abroad to self or blood relative through legal means?

— P.C. Bajaj

A. The receipt of consideration by cash and its acknowledgement by you will have the following consequences:

* The capital gain arising on the sale of property would be computed after taking into account total consideration i.e. cheque as well as cash consideration.

* Stamp Duty on the transfer of the property would also be chargeable on the total consideration i.e. the cheque and cash consideration. In case the Stamp Duty has not been paid correctly, the Collector of Stamps may levy the correct duty and also charge penalty for not reflecting the correct amount of consideration.

In case the full amount of consideration is declared with the tax authorities, the net amount after payment of tax can be remitted abroad by a Non-Resident Indian as such remittance is permitted by the regulations under Foreign Exchange Management Act, 1999. Such remittance is not possible for a person living in India. In case the amount is to be remitted to blood relatives by a resident Indian, it will be possible to remit a sum of $ 2,00,000 in a financial year in accordance with the regulations framed under the Foreign Exchange Management Act, 1999. 

Transfer of lease rights

Q. There are three equal share-holders (three real brothers) in a property at Chandigarh. This property comprising a single-storey building (10 marla) is on lease from the Estate office (UT), Chandigarh. Though 100 per cent lease rights of this property have been transferred in the names of three brothers (33.33% to each), the area of the above property has neither been demarcated nor distributed among the three brothers. Three brothers used to stay together in the said house till January, 2010. One brother sold his lease rights (33.33%) to an outsider in February, 2010 through a sale deed executed in the office of Sub-Registrar, Chandigarh by paying proper stamp duty of 3% (as stipulated in the case of transfer of lease rights) share. He also gave possession of only one bedroom to the said outsider on the day of registration of the sale deed without the knowledge/ consent of his brothers.

The brothers have opposed this action of giving possession of one bedroom to an outsider and also requested Estate Office (UT), Chandigarh not to transfer of lease rights to the extent of 33.33% in the favour of the outsider as the area of the above mentioned property had neither been demarcated nor distributed among the three share holders. Moreover, no indication of possession to outsider has been given by our brother in the said Sale Deed.

It is pertinent to mention here that, the original Allotment Letter of the property (issued in December, 1984) and Transfer Letter issued in January, 2010 contain a common condition:

"No fragmentation of the site or amalgamation of sites shall be permitted" - Allotment letter (Dec., 1984).

"You (Each shareholder) shall not fragment the site in any manner". - Transfer Letter (Jan., 2010).

In view of above, kindly suggest :

Whether our request to Estate Office, Chandigarh regarding non-transfer of the lease rights to the extent of 33.33% in the name of an outsider on the basis of above mentioned plea justified?

Kindly also elaborate the meaning of fragmentation or amalgamation of site/ property comprising single-storey building, which is a single house having three bedrooms, one drawing-cum-dining and one kitchen.

In what circumstances, is the entry of the said outsider admissible in our house which is a single-storey building with common entrance?

— Rajesh Chand

A. It is not possible to give a reply to your query without going through the contents of the Lease Deed entered into by all of you with the Estate office (UT), Chandigarh. The terms and conditions contained in the Lease Deed are important as the allotment letter issued to you would lose its significance after execution of the Lease Deed. Ordinarily, a Lease Deed contains a clause that no division or fragmentation of the plot would be allowed. In ordinary course the Estate office should not transfer leasehold rights in the property to the extent of 33.33% in favour of a person without the consent of co-lessees. However, as stated herein above, the action of your brother to transfer his share to an outsider and such outsider being recognised as co-lessee can be decided after going through the terms and conditions contained in the Lease Deed.

Tax liability

Q. I am a government servant. I constructed a house in Sector 26, Panchkula last year. I do not have any other house in India. As my job is in Chandigarh, I have been allotted a government accommodation in Chandigarh in which I am living at present. I could not shift to Panchkula as the area is not developed as yet and also the distance between this house and my office is around 20 km.

Due to these reasons, I have rented out this house to a company (Rs 9,500 per month). My income from this house was Rs 1, 10,000 last year. I also paid Rs 33,000 as interest on loan taken from the government for the construction of this house. The taxable income from my salary is Rs 7, 25,000.

* I want to know the tax liability for above income.

* If I shift to this house then I will receive HRA of Rs 1,20,000 per annum apart from my salary. What will be my tax liability in this case?

— Pramod

A. Your queries are replied hereunder:

* Your total income after giving rebate for the interest on loan and statutory deduction allowable from income from property would work out to Rs 7,69,000. You will be liable to pay a tax of Rs 90,434, including education cess of 3% for assessment year 2011-12. The computations are based on the following presumptions:

* The income from property stated to be at Rs 1,10,000 is after the deduction of house tax of Rs 4,000 as the gross rental for the year 2010-11 would be Rs 11,14,000.

* The taxable income from salary of Rs 7,25,000 is after deduction for the allowable exemption in respect of HRA.

* The deduction allowable under Section 80C has already been taken into account while computing the taxable income from salary of Rs 7,25,000.

* In case you shift to your own house, the amount of HRA would be taxable and added to your total income.

Share percentage

Q. My father-in-law (died 1978) had one son from his first wife and three sons and four daughters from his second wife. His eldest son died in 2004 and had two sons and two daughters. My father-in-law had some residential property in Shimla. He had not made any Will at the time of his death. What will be the percentage of share that the sons and daughters of his eldest son (from first marriage) can claim in his property.

— Dyal Singh

A. According to the provisions of Section 8 of the Hindu Succession Act 1956, the property of a male Hindu dying intestate shall devolve firstly upon the heirs specified in Class 1 of the Schedule to the said Act. The order of succession among heirs as specified in Section 9 of the aforesaid Act is that heirs in Class 1 shall inherit the property simultaneously. According to Class 1 son, daughter, widows, mother, son and daughters of a predeceased son shall inherit the property. The method of distribution of property among heirs of Class 1 of the Schedule is given in Section 10 of the Act. According to the provisions in the said Section, the surviving sons and daughters of the intestate shall take one share each and heirs in the branch of each predeceased son of the intestate shall take between them one share. Accordingly, each of the sons and daughters of the deceased from second wife would be entitled to 1/8 th share. The granddaughters and grandsons together would be entitled to balance 1/8 th share in the property.

project watch
Excavation starts at SG Homes

Excavation work at SG Estates’ new premium luxury residential project, SG Homes began last week. Spread over an area of 2.5 (approx) acre, the project is located in Sector 3, Vasundhara, Ghaziabad. Vasundhara is situated between NH 24 and 58. Planned to have approximately 366 units, the project will be constructed in of almost 2.5 years.

The project comprises of 2, 3 and 4 BHK apartments ranging from 1095 sq ft. to 2430 sq ft. The cost of apartments start from approximately Rs 32.30 lakh.

Bhoomi poojan

Paramount Group performed the bhoomi poojan of Emotions located at Noida Extension. The ceremony marked the commencement of construction of this project. The possession of the project will be given in 24 months. Speaking on the occasion Ashwani Prakash, Executive Director,of the group said, “Being an affordable project in a location like Noida Extension, Paramount Emotions has received an overwhelming response, which reflects the trust of our customers. We hope to take this trust forward and fulfill our commitment to deliver all 1,500 units of the project in 24 months.”

Emotions, spread over an area of 11.5 acres, is located in Sector 5, Greater Noida. The project offers varied options of two and three BHK apartments, in area ranging from 845 sq. ft. to 1,595 sq. ft. The price of these apartments starts from Rs16 lakh. The artistically designed units are spacious and posses all the modern amenities.

GREEN HOUSE
Keep the border in order
A dash of imagination and creativity in using the perfect plants and materials for creating the right border effect can add to the beauty of your garden, writes Satish Narula

An attractive border or frame can make or mar a picture or a painting. While landscaping a garden is also treated like a picture that needs an appropriate frame — border. Each lawn and flower beds need a well-defined and appropriate border.

Attractive borders can be created in many ways. Borders are created either in part along the flower beds or on lawn fringes. Borders can be created created with hardscape or plants.

In the hardscape category, we include bricks, stones, pebbles or even colours. The border may be temporary or permanent. Permanent borders are created by bricks put in the soil vertically or horizontally. This is, in fact, the old fashioned way of doing it. This type of border obstructs mowing operations close to the edges of a lawn. It also lends a hard look to the garden thus defeating the very purpose of having a garden in a building complex. The use of hardscape, thus, has to be judicious. Normally, I have seen this kind of border in cantonments and institutions.

The present trend is to extend the lawn till the edge of the garden. But if you want to have some flower beds then suitable borders are created with short-statured plants. The lawn borders are created by the use of permanent kind of plants like duranta that also adds colour. But care should be taken to keep the height of such borders manageable. I have seen such borders being a foot or more high. Except for where it is required, the purpose here is not to ensure privacy as there is a difference between a border, edge and a hedge. The edge or the border should not be higher than four inches, at the most, with a similar width. The height or the width can be raised in case you want to plant tall flowering plants.

In winter it is very easy to select one of the winter annuals to be used as border. There are many short-statured plants that bear attractive flowers too. These are sweet alyssum (now available in many colours), pansy the dwarf and giant, mesembryanthemum (burf), candytuft and bulbs like oxalis etc.

Now for a bed with tall growing annuals, there are even dwarf dahlias that are just 8 to 10 inch high. For occasions like flower shows or some function or lawn party, immediate effect can be created by using river stones, pebbles, rangoli with colours (saw dust) etc.

During summers, portulaca can be used as a "border plant".

I have seen some gardeners making the mistake of using plants of Ficus species as borders. It is wrong as such plants grow very fast and are not suitable for borders. After a few months the main trunk takes strength and is prominently visible near the base.

Fortnightly alert

This is the time to plant cucurbits like khira, tar, kaddu, chappan kadu etc and with this comes the red pumpkin beetle. It feeds on the young emerging leaves and the vines may even die in the absence of proper photosynthesis. It is important to control this insect by using sevin, dissolved at two and a half gram to a litre of water. Repeat the spray after 10 to 15 days.

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

De-clutter for peace 
Sharmila Chand

Whether it’s your bedside drawer or cupboard or the favourite corner, let it be free of unwanted stuff. Just as you need to detox your body of various unwanted pollutants, your home also has to be detoxified regularly.

We keep stuffing our drawers, cupboards, lofts, bed boxes, corners with unwanted things in the hope of needing them one fine day. We collect garments which we don’t wear anymore, toys which kids don’t play with anymore, gifts which we will never use, even empty gift boxes and wrappers, broken kitchen utensils and gadgets, the daily mail and documents we receive, the list goes on and on.

All this amounts to clutter which not only makes the house look messy and unkempt but also represents stagnant energy.

Every school of thought suggests that right energy is essential for peaceful co-existence. Whether it is Vaastu or Feng Shui, the basic concept is to create and maintain positive energy. De-cluttering is an important step in harnessing the right vibrations and encourage positive energies while repelling the negative ones. Positive energies need to be manifested by keeping the environs free of clutter so that we resonate at a level which is harmonious with the natural positive vibrations of the earth.

The clutter in your home adds to clutter in your life and mind. Giving away unwanted stuff gives immense satisfaction. Most people have difficulty in giving away their possessions due to a false sense of loss. They must remember words of Kahlil Gibran in The Prophet:

 “All you have shall some day be given

Therefore give now, that the season of giving may be yours and not your inheritors”

By learning how to declutter your home, you can change your life, mental state, your day to day emotions, well being and energy levels. And this is actually surprisingly easy to do once you know how.

So Decluttering is also a state of mind! Once you decide to keep things in an organised manner without letting the extras messing up every nook and corner, you will realise how happy and efficient you’ve become in day to day functioning. So stop letting clutter hold you back in life! 

Steps For De-Cluttering

* Learn to manage clutter on a daily basis.

* Keep boxes for placing items such as clothing or junk that you can give away or sell.

* Use the “one in, two out” rule. Whenever you bring in an item, you have to throw away two other items.

* Go yourself and donate stuff you’re decluttering, you will get immense pleasure when you will realise it’s being used and not getting wasted.

* For clothes, just remember: If you haven’t worn an item in six months, you don’t need it. Give it away.

Detox the Eco-Friendly Way

* Leave your shoes at the entrance of your home. Go barefoot or wear home slippers.

* Avoid candles which are petroleum based, switch to pure beeswax ones.

* Replace toxic lawn and garden pesticides and herbicides with natural, less damaging ones.

* Avoid harmful pet care products.

* Avoid toxic pest control products.

* Avoid chemical based carpet cleaning.

* Keep a bamboo palm to remove carbon monoxide from your home environment.

* Cultivate mother-in-law’s tongue or snake plant, to absorb airborne pollutants and to act as a natural humidifier. These are easy to care for and make trouble - free detoxifiers.

REALTY GUIDE
B K Sanghi
House in 42 lakh

Q. I am a middle-level executive based in Panchkula at present. I have two teeanged daughters. I am looking for a flat and have a budget of about Rs 42 lakh. Please advise me regarding the right choices for buying residential property in and around Chandigarh.

— Ashish

A. With your budget it is unlikely that you will find a three-bedroom (which seems to be your minimum requirement) flat in Chandigarh. However, nearby areas like Zirakpur, Kharar, Peer Mushalla will have good options for you. If you don't need to shift immediately to your own flat then you may also consider upcoming areas like Mullanpur and outer Mohali areas where a lot of projects are coming up. The upcoming metro project will take care of your commuting concerns. Choose an apartment, preferably from a large or medium builder, which has all modern amenities to suit your lifestyle. A gated community or complex with adequate security will suit your needs as you have grown up daughters. However, if you are looking for a plot, then other upcoming towns such as Dera Bassi, Kharar, Pinjore and Lalru offer many options. You can construct a house keeping in mind your family's requirements and upper storeys of the house could also give you some rental income to pay off the bank loan.

Best investment option

Q. Is this the right time buy commercial property in India in general or in tricity and surrounding area in particular? — M.K.Shukla

A. It is the most opportune time to buy commercial property in India in general and in tricity and its vicinity in particular. On the face of it commercial property is a better investment option than the residential property. Since all major cities are growing by leaps and bounds, commercial property offers a secure rental income. Moreover, banks and financial institutions provide easy loans for buying commercial property. As almost all residential complexes all over the country will require commercial and shopping complexes around them, commercial property holds good promise.

As far Chandigarh and its nearby areas are concerned, commercial property is a good investment option. As Chandigarh Administration sells commercial property on leasehold basis, the payment of the yearly lease money by the buyers keeps the prices low. Other towns in Chandigarh's periphery are still emerging and prices are still within the reach of an individual buyer. Thus commercial property in Chandigarh's nearby areas will prove to be a virtual goldmine for investors. It is a far better investment than the one in residential property.

Buyers' checklist

Q. Scores of builders offer apartments in all major cities in India. What should a buyer/investor check to avoid frauds or getting a raw deal from the promoters?

—Harinder Singh

A. A builder's track record and necessary government clearances obtained by the builders should be checked before thinking of parking your funds in a project. Previous track record of a builder also gives a lot of information about his integrity. Projects completed by the builders and their commitment to hand over possession in time and quality of construction should be checked and cross checked from several sources. Make use of the Internet, end users and investors who have invested in the projects of a particular builder. Do not be misled by catchy advertisements. Check the ground reality of the claims, such as covered area, super area, civic amenities, and value added services such as clubs, golf course, shopping malls and other things. As far as possible make all payments, including premium, if any, through cheques only. If for some reason the payment has to be made in cash then take proper receipts from the promoters/builders. This would check frauds by the unscrupulous builders in case of any legal complications at the later stage.

GHS membership

Q. I want to buy a cooperative group housing society (GHS) flat either in Chandigarh or Panchkula. Can it be legally transferred in my name?

— Meeta Sharma

A. There are two ways of becoming a member of a GHS. Firstly you can be among the original members of a GHS. Otherwise you can become a member by buying a share from an original member after fulfilling certain terms and conditions laid down in the rule-book of a GHS. In Chandigarh, the substitution of the original members by the new members is allowed by paying a fee of Rs 15,000 (Category C), Rs 25,000 (Category B) and Rs 50,000 (Category A) to the Chandigarh Administration. The Haryana Urban Development Authority (HUDA) also allows transaction of GHS flats. While the cooperative departments of the Chandigarh Administration and HUDA have laid broad guidelines for the transfer of flats in group housing societies, an individual society's respective bylaws could also have an impact on the sale/purchase of a flat. So before finalising any such property transaction, you should know whether you are eligible for becoming a member of that particular society or not. A broad guideline is that you should not own a residential property allotted by the government in the same city. Thus, a flat can be transferred in your name subject to your eligibility to own one.

The writer is president of the Haryana Group Housing Federation and a real estate expert with over 25 years of experience in the field. He will clarify readers’ queries regarding investment in property and other related issues. The column will be published fortnightly. Readers can send their queries at Real Estate Desk, The Tribune, Sector 29, Chandigarh (by post) or through e mail at realestate@tribunemail.com

Plea for teaser home loans
S.C.Dhall

A large number of banks have challenged the Reserve Bank of India’s decision to curb teaser home loan rates under which banks have extended home loans to thousands of borrowers across the country. The RBI, they claim, has not defined the meaning of teaser loan.

Meanwhile there is also a difference between the RBI and the Government on the much debated “teaser” home loan. This clearly comes to the fore in the Economic Survey 2010-11. Despite the RBI expressing its concern about the State Bank of India's teaser home loans scheme, the Government appears to be convinced about the inclusiveness of the scheme.

The Survey also revealed the fact that teaser home loans had enabled many new home buyers to enter the market and spoke well of the inclusiveness of the scheme even as the sub-prime segment was deliberately left out.

Pointing out that the ‘teaser loans' terminology is sufficiently tainted for a neutral term to be of some value, the Survey refers to such loans as ‘terraced loans' i.e. loans in which the monthly repayment of instalment rises over a period of time.

“The response of the new borrowers to this was very good….Defaults on these (loans) have been negligible and cases of foreclosure rare. Also, these loans played a major role in promoting inclusiveness. Over 80 per cent of the home loan borrowers were first time home buyers,” said the Survey.

The Survey specifically referred to the fact that SBI came out with two different terraced loan products — Happy Home Loan in February 2009 and Easy and Advantage Home Loan in August 2009. Both these loans hold the interest rates fixed and below the market rate in the initial years. Thereafter, the rates turn floating.

The RBI, in its monetary policy review, had cautioned that teaser loans raise concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective.

It has also been observed that many banks at the time of loan appraisal do not take into account the repaying capacity of the borrower at normal lending rates.

The Survey emphasised that banks should be given the freedom to introduce teaser home loan scheme.

According to SBI there were quite a few issues on which SBI “differed” with the RBI. According to SBI officials if the bank had done any thing wrong, the finance ministry or the regulator would not have allowed him to continue with certain schemes.

On RBI’s disapproval of teaser loans (SBI is the only bank to continue with the special home loan scheme till March), SBI would look at the quarterly data and would extend it beyond March if the picture is good.

In strong defence of the scheme, the SBI had given home loans to nearly 300,000 people in India. “Many Indians own homes because of SBI. SBI has not teased anybody, there is no risk and no opacity. 

Launch pad
Panch Tatva

Habitech Shreshtha Nest recently launched its project ‘Panch Tatva’ at   Noida Extension (Greater Noida). The group is venturing into affordable housing segment with its new offering. The project is based on the concept of five natural elements i.e. Prithvi, Vayu, Jal, Agni & Akash, which means complete natural holistic living.

Speaking on the occasion Sunil Kumar Gupta, Promoter, Panch Tatva, said, “Customer satisfaction and healthy life style in the natural environment being the primary aim, it is our endeavor to build world class edifices to suit different choices and budgets. And we’re extremely excited to have Kapil Dev as the brand ambassador for Panch Tatva. He has a keen fighting spirit, which gels well with our efforts to strengthen our brand while we relentlessly work towards maintaining our competitive edge”.

He further added, “This patch of Greater Noida would become the next preferable destination soon in terms of connectivity because of the proposed Metro line and rapidly growing infrastructural development. Customers will benefit not only from buying the house at an affordable rate but also by availing the best facilities provided at Panch Tatva.”

The22-acre project is situated on 130 m New Expressway connecting Noida and Greater Noida. It will have approximately 2000 units. The project will be constructed in different phases. With their first phase, the project will have 1000 units and is expected to be completed in 30 months. This project will have more than 80% landscape/open area. The project comprises 2BHK, 3BHK & 4BHK apartments and penthouses ranging from 895 sqft. to 4000 sq ft. The cost of apartments would start from approximately Rs 15 lakh. This project will have high-rise apartments with world-class amenities and ample parking space.

Demand for single-window clearance

CREDAI, the apex industry body for real estate developers, has sought single-window clearance to prevent project delays and to bring down housing prices.

Speaking to reporters after being elected as the new Chairman of CREDAI, Parsvnath Developers Chairman Pradeep Jain said the association would take up with the government issues like single-window clearance, tax sops and priority lending to buyers as well as builders in the affordable housing segment.

"Our vision is to bring CREDAI at par with other business chambers. We need to work hard with the government for changing the perception about the industry," Jain said.

Jain succeeded Kumar Gera of Pune-based Gera Developments to the post.

He noted that the government should promote affordable housing by providing credit at cheaper rates to home-buyers as well as developers. He also demanded removal of service tax for the affordable housing segment.

On the need for single-window clearance, the new CREDAI President Lalit Kumar Jain said it takes 9-18 months to get approvals from the various government agencies, leading to delay in project completion and cost over-run.

Jain, who is also the Chairman of Kumar Urban Development, said CREDAI would prepare a comprehensive check list for single-window clearance.

He said it would consist of all requirements pertaining to various government agencies that a developer has to meet for getting approvals. This check-list could be adopted by the state governments for approval process, he said.

"Besides removing delays, single-window clearance would bring down cost for the end-users by 10-20 per cent," CREDAI President said.

The Confederation of Real Estate Developers' Associations of India (CREDAI) represents over 5,000 developers through 20 member associations across the country. — PTI

REALTY BYTES
Puravankara to invest Rs 500-1000 cr

Bangalore-based real estate company Puravankara Projects is aiming to go aggressive in the affordable housing segment and is looking at investing between Rs 500 crore to Rs 1,000 crore in Kerala in all the segments in the next two years, a top official said.

The focus area of the affordable housing segment would be the Tier II and Tier III cities. Provident Housing Ltd, a wholly owned subsidiary of Puravankara, caters to the affordable budget housing segment targeting middle class and first time home buyers and already has two projects in Chennai and Bangalore, Jackbastian Kaitan Nazarath, CEO of the group told reporters here.

The company's plan is to focus on South India in the first phase and to spread in other regions in the second phase.

"We are in acquisition mode in the affordable housing segment in Kerala. Hopefully, we will have the first acquisition completed very soon," he said.

The group is aiming to make its presence in 33 cities in the next five years.

Puravankara has completed the high-end 'Purva Oceana' its first project in Kerala at Kochi, which is being marketed after the construction is over.

The company has so far completed 33 residential and commercial projects and has 19 ongoing residential projects, he said.

The group began operations in Mumbai and has established its presence in Bangalore, Chennai, Coimbatore, Hyderabad, Mysore and overseas in Dubai and Colombo. Puravankara is also the first to obtain FDI in the Indian real estate industry through its joint venture with Singapore- based Keppel Corporation and has ongoing housing projects in two cities in India.

Nazarath said 2010-11 would be consolidating year for the group. The group has purchased land in Colombo and is also getting into road and bridges segment besides looking at building few hospitals.

On the future projects in Kerala, he said they have one more project at Marine Drive and two at nearby Kakkanad. — PTI

MOU with Spain’s FEVEC

Realtors’ body NAREDCO has entered into an agreement with Spain’s Valenciana Federation of Construction (FEVEC) to promote collaboration between real estate developers of both the countries.

FEVEC represents 1,000 companies in Spain and NAREDCO is the apex body of real estate sector formed under the patronage of Ministry of Housing and Urban Poverty Alleviation.

The MoU would facilitate joint ventures between the members of two associations, NAREDCO said in a statement.

“The MOU will attract foreign investment in housing and real estate development in India and provide access to new construction technologies,” Vigneshwara Developers Managing Director Vigneshwara Developers said.

“This is the first initiative by FEVEC in India to promote business in the field of construction, housing and real estate development and, training and skill development,” said Rafael de la Cuadra Ribes, Director Area International/ International Area Manager, FEVEC. — PTI  

More enquiries

Chennai: Enquires for commercial real estate property have picked up in the past couple of months following decent growth in the IT industry.

"This year there are more number of enquiries for commercial space ...compared to the last year. The trend has picked up because the IT and BPO industries are witnessing a decent growth," Confederation of Real Estate Developers' Associations Tamil Nadu unit President T. Chitty Babu said in Chennai recently.

CREDAI officials said the response for commercial space had decreased considerably last year, with many places in the state lying untapped.

Residential units, however, saw a decent growth. While the trend was bent more towards affordable housing segment, luxury houses too were sold in no time.

"Though there are a number of affordable housing units on the outskirts of Chennai, luxury houses are being sold in no time. It may be because these are less in number," he said. — PTI 

“Interest in affordable homes in India has seen a recent rise, with investors seeking quality and luxury within reasonable reach. As the momentum towards affordable housing grows, Indian developers are moving outward into newer areas, building a wide range of properties to suite all budgets,” Sait said. — PTI