Clipping the wings of speculators
Rajmeet Singh

Recent upheavals in the real estate sector like heavy debt burden of major realtors, increase in home loan rates, land acquisition row and increasing construction costs have clipped the wings of this soaring sector to some extent as sales volumes are witnessing a fall in the country. This lull is having an effect in the realty market in the tricity area also. The market is witnessing a correction and a majority of the end users are in wait and watch mode, but it is GMADA's offering of plots in Urban Estate in Mullanpur that is creating ripples here and keeping the buyers and investors interested. Learning lessons from its experience in the Aerocity project last year, the development authority, however, seems to be in a mood to curtail the role of speculators this time. It has come up with a number of conditions regarding eligibility to apply and payment schedule to keep out the speculators, who have been purposely controlling and jacking up property prices to force the end users to shell out more money to own a property.

Key provisions n GMADA to end speculation and allow end users to buy property straight away n Only bonafide Punjab and Chandigarh residents eligible to apply n Price to vary between Rs 15,000 and Rs 19,000 per sq yd

The Urban Estate scheme offering freehold residential plots of various sizes in Mullanpur, located 7 km from PGI, will be floated by the month end.

Analysing the market forces GMADA officials found that certain loopholes in the criteria like payment schedules and eligibility conditions actually enabled the speculators to apply in bulk whenever a housing project was floated. They then controlled the demand and supply of property to extract their margin money.

Also learning from the past experiences as in case of Aerocity where over three lakh applicants, mostly from outside Punjab and speculators had applied and the margin money of the plots increased prices exorbitantl, GMADA officials have now almost decided to limit the schedule to pay 95 per cent of cost of a plot to less than five months from the date of issuing of the letter of Intent (LOI).

Explaining the logic behind the move, a senior official of the authority said the rebate earlier offered for making payment in 90 or 120 days had been adjusted in the allotment rates this time. "We only want end users and those who genuinely need houses to apply for the scheme", he said. The changed regulations would be stamped by the Executive Committee (EC) of GMADA, headed by the Chief Secretary, in a meeting scheduled for the next week.

Chief Administrator of GMADA Sarvjit Singh also makes it clear that the authority was keen on ending the role of speculation this time. "Certain changes in the payment criteria are being proposed. The decision is to be taken by the Executive Committee of the authority", he said.

Welcoming the move, Sanjeev Sharma, a resident of Mohali, said it was the right step. "Though property prices are coming down. But government needs to get strict about ending the speculation rather than becoming party to it. The eligibility criteria should be such that only those who can make the payment in white are able to apply", he said. On the other hand, N.K Marwaha, a real estate developer, said the restricting the payment schedule would ensure that the margin money is less and the financiers would suffer. "A government agency should not act like a private colonisers and should help the genuine applicants by extending the payment schedule", he said.

The GMADA has also made changes in the eligibility criteria this time. Now only for bonafide residents of Punjab and ChandIgarh will be eligible to apply for the plots. The employees of the Punjab and Haryana High Court have also been given the privilege to apply for the scheme. This yardstick would also apply to future housing schemes also.

Number of plots varying in Mullanpur urban estate

From initial 2,074 plots, the number of plots ranging between 100 sq yd (4 marla) and 500 sq yd (1 kanal) has been reduced to 740. A major chunk of the plots have been given to the landowners who had opted for the land-pooling scheme.

Of the total 740 plots, around 40 per cent would go to reserved categories. As per norms, around 100 persons will be allowed per acre.

Online applications to be accepted

GMADA has decided to adopt the system of inviting online applications for the upcoming Mullanpur Urban Estate to facilitate applicants. On the basis of computer-generated application forms, applicants will be able to deposit the earnest money with banks. All those who own a property or are original allottees or have plots in Sectors 76 to 80 and Aerocity are not eligible to apply for the Mullanpur Urban Estate. GMADA has decided to give in advance the schedule for draw of lots and issuing of the Letter of Intent (LOI)

What payment schedule norms need to be tightened?

Apart from ending speculation, GMADA is keen to limit the period of payment schedule as it ends the unnecessary litigation relating to delayed payments. It would also reduce interface between the office staff and the allottee, and would keep a check on corruption. "It would also reduce the need for manpower", said an official.

Cost factor

"Given its locational advantage, the Mullanpur Urban Estate is the prime residential property in Chandigarh's periphery. In fact, the government-floated residential projects have been priced between Rs 15,000 per sq yd (for 100 sq yd plots) and Rs 19,000 for 500 sq yd plots. The price has been fixed keeping in mind the prevailing rates in the area. "While Omaxe, whose site is around three km away from the Chandigarh-Baddi road, had launched its project at Rs 15,000 per sq yd, the DLF had launched the residential project at around Rs 23,000 per sq yd a couple of months back fair poorly as far as its location is concerned when compared to the GMADA site", says Kamaljit Singh Panchhi, president, Property Consultants' Association, Chandigarh.

tax tips
Chance to file Return
S. C. Vasudeva

Q. I am a retired officer of a government undertaking. I retired on July 31, 2010. Till the last financial year I was regularly filing my IT Returns.

n I got Form 16 this year very late from my ex-employer indicating the TDS details so I could not file return in time. Can it be filed now?

As per my assessment there are no dues to the govt. and in fact I may get small refund out of TDS.

n I had recently disposed of one house. Am I have to pay any amount to govt. in current financial year. I heard that if the proceeds are reinvested in another house no tax is payable.

n  I am 61 years and my present annual income (mostly interest from bank deposits) may be around 2.5 lakhs. What is the present tax liability for me and am I have to pay advance tax? On hearing from you, if required I can come to your office with papers.

— Aditya Misra

A. The answer to your queries is as under:

n  Yes, you can file your return for the year ended March 31, 2011 upto March 31, 2012 without any penal consequences.

n  The capital gain arising on the sale of a residential house is taxable. In case the residential house is held for a period of more than three years, the capital gain arising on sale of such a house would be treated as a long-term capital gain and taxable @ 20 per cent plus applicable surcharge and education cess. Such a capital gain would be exempt from tax provided the capital gain arising on the sale of the residential house is utilised in the purchase/construction of a new residential house. The purchase of a house will have to be carried out within a period of two years after the date of sale. The construction of a residential house is required to be completed within a period of three years after the date of the sale. To avail this benefit, the capital gain which is not utilised before the date of filing the return for the year in which the sale has taken place should be deposited before the due date of filing return of income, with a bank under capital gains scheme. The amount so deposited will have to be utilised for the construction/purchase of a residential house.

n  The maximum amount which is not chargeable to tax for the assessment year 2011-12 (financial year 2010-11) is Rs 1.60 lakh. You will, therefore, have to file the Income-Tax return as your income is much above the said limit. The advance tax is payable in case the total tax liability for the year is Rs 10,000 or more. 

Can builder sell parking area?

Acquire property in joint names

Q. I am planning to buy a house being financed by bank. I would like to take the joint loan as my wife is also government employee. As the total tax rebate is Rs 1.5 lakh in case of housing loan, if both of us want to take rebate in the income tax, what should be the formalities as far as joint loan case is concerned? Please guide me in detail.

— Ved Prakash

A. Your queries are replied hereunder:

n  It seems your query is with regard to deduction allowable in respect of interest payable on loan borrowed for the purchase of a residential house for self-occupation as the limit of Rs 1.5 lakh is applicable to such a case. The reply is, therefore, based on this assumption.

n  The formalities with regard to raising of loan would depend on the requirements of the bank from where the finance is being raised.

n  It would be advisable to execute documents which would indicate that both you and your wife have borrowed the amount for construction of the house. It would, therefore, be essential that the property is acquired in joint names. Further amount borrowed by each one of you and the repayment of the loan installments should be fixed separately. The interest on loan along with the principal amount should be paid by each one of you from your respective bank accounts. This would enable both of you to claim the deduction under Section 24 of the Income-Tax Act, 1961 (The Act). 

Relinquishment Deed 

Q. What are the legal formalities for surrendering one's share in ancestral, joint family and father's self-earned properties? Can such surrendering be withdrawn and if so then when and how?

n Partition in respect of ancestral property was done on October 1, 1980. Will the married daughters get an equal share in this case

— S.K. Jain

A. Your queries are replied hereunder:

n  The person surrendering his share in a property can do so by executing a Relinquishment Deed. It should be possible to withdraw the same before an effect is given to such a deed.

n The Hindu Succession Act 1956, was amended w.e.f. September 9, 2005 to provide for a daughter to be considered as a co-parcener and thus entitled to a share in the ancestral property equivalent to a son. In view of the partition of the ancestral property, having taken place much before the amendment as per the facts in the query, in my opinion the amended law would not be applicable retrospectively and the law prevailing as on the date of partition will have to be applied. On that basis married daughters would not be entitled to a share in ancestral property. It may be added that in some states, law on this particular issue had been amended much before so as to provide for a share to a daughter in an ancestral property. You may therefore have to consult the state law on the subject before taking any action in this regard. 

TDS on rental income

Q. I am over 64 years of age. My rental income is being paid after TDS. My monthly rental income is about Rs 24,000 and my other agricultural income is about Rs 1.10 lakh per annum. I am head of a joint Hindu family. Do I have to file an IT Return? If yes the will it be individual Return or as karta of HUF or by submitting form 15G? Will I be able to get exemption from TDS of rental income.

— Sunil Kumar

A. You have not indicated whether the rent is being received from a property owned by an HUF. Similarly, it is not evident from the query whether the agricultural income is from the agricultural land owned by the HUF or otherwise. The reply to your queries is, therefore, based on the presumption that the income from property as well as from agriculture is in the status of an individual.

n  The rental income being much above the amount which is not chargeable to tax, you are supposed to file your Income-tax Return.

n  Since your income is above the taxable limit it will not be possible for you to file form 15G for getting exemption from the tax deduction at source.

n  The agricultural income of Rs 1.10 lakh is exempt from tax but shall be included for the purpose of computing the average rate of tax applicable to other taxable income. 

Seek police help

Q. I had bought a plot in an approved colony a year ago and had got it registered in my name also. A few weeks back I came to know that some people have taken forcible possession of my plot and claim it to be theirs. I checked up my registration and mutation papers and found that the land has been mutated in my name. These persons don't show any documentation also. Please let me know if the documentation in my name is sufficient proof of ownership. I stay in Singapore how can I deal with this situation?

— A.K. Srinivas

A. You should take the help of the police for the purposes of getting the unauthorised occupants evicted from your plot. It would also be advisable to take up the matter in the Court for this purpose. The court would also help you in getting the necessary help from the police. 

The writer can be contacted at sc@scvasudeva.com

Realty bytes
Architects' meet

Building solutions company Everest Industries Limited, which is also a dominant player in the fibre cement board market recently organised an architect meet in Chnadigarh to demonstrate the technology and installation of its fibre cement boards for walls.

Fibre cement boards for walls are modern, high performance, durable and versatile boards that are manufactured from a homogenous mixture of Portland Cement, treated cellulose fibres, finely ground silica and quartz and other select mineral fillers in a state-of-the-art unit using sophisticated, digitally-controlled processes. These are manufactured and designed to be used as multipurpose cement boards, heavy duty cement boards and siding which can serve diverse purposes.

Speaking on the occasion, Rakesh Verma, Business Head, Everest Industries stated, "Our fibre cement boards are manufactured with the revolutionary HPSC technology to make them termite resistant, water and fire resistant. These boards have a wide variety in applications from false ceilings, internal walls, to Pre-fabricated Internal and External Shelters.

South City Projects to foray into Sri Lanka

South City Projects (Kolkata) Ltd, one of the fastest growing real estate firms in eastern India, will foray into the real estate sector in Sri Lanka by investing nearly $100 million in a project in Colombo.

The mixed-use development project will be executed by the company's newly-formed subsidiary, Indocean Developers Pvt Ltd.

"We are finalising the details of the project and will start work on designing in six to seven months.

"The construction of the project is expected to begin within a year and has an expected completion dateline of 2014," Indocean Developers director Anil Khetawat said recently.

The project will consist of high-end retail stores, restaurants, spas and residential apartments and will be spread over two acres of land. Funding for the project will be through the debt-equity route.

Khetawat said it will use the 'South City' brand name for the Sri Lanka project. "This is our first international project. The company is expecting a turnover of nearly $400 million from the project." South City Projects is a consortium of six Kolkata-based real estate companies namely the Merlin Group, Shrachi, Rameswara Group, Emami Group, JB Group and Sureka Group.

Rich haul of awards

Jones Lang LaSalle has been honoured with a number of awards at the prestigious annual Euromoney Real Estate Awards (2011), being voted number one Global Real Estate Advisor and Consultant.

This is the third time Jones Lang LaSalle has won the overall global award since the award programme was established in 2005; this year the firm also was voted top Global Advisor and Consultant for Valuation and Research.

Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle said: “Recognition in the Euromoney Real Estate Awards 2011 is noteworthy because the winners are voted for by companies within the real estate industry. Jones Lang LaSalle’s recognition as the top global adviser and consultant reflects the calibre of our people and the quality of the advice and service they provide to clients across all areas of our business globally.” Including this global recognition, Jones Lang LaSalle won a total of 64 awards in this year’s Euromoney Real Estate Awards, including number one overall advisor in Asia, Middle East & North Africa (MENA) and Central and Eastern Europe (CEE). Jones Lang LaSalle was awarded the top award for Valuation in Asia and MENA, Agency and Letting in Asia and CEE and Research in Asia, the Nordics and Baltics and MENA. The firm also won the overall adviser award in a further 15 countries.

— Agencies

Green house
The living art
bonsai - I
Maj Gen C.S. Bewli

The pleasurable experience of bonsai gardening has gained popularity as an increasing number of people of all ages and culture s are experimenting and enjoying the art. The key to having the perfect bonsai is to bring nature in miniature.

Creating a bonsai, however, is not an overnight affair, it is a living art and it keeps on evolving and taking shape perpetually. Like a sculpture or a painting a bonsai is never finished as it keeps on challenging the artistic abilities always. A bonsai can live for more than 100 years if it is looked after well.

There is a common misconception that bonsai trees are a special type of trees that are miniature in nature. But it is not so. A bonsai tree is the same as any other tree, the only thing different is the way the in which it has been shaped and pruned to create the dwarf effect. It is not a dwarf species or a young sapling shaped as a tree. It is the result of painstaking efforts, a craft where love and hard work is put in for years to create a work of art resembling a mature tree in nature.

Key elements

Journey down the ages n Bonsai art originated from China in the 8th century and the art was spread to Japan by the Buddhist monks during 11th and 12th centuries. The Japanese refined and perfected this art during the 17th and 18th centuries and by the 20th century they codified the various styles of bonsai derived from different trunk-line forms as they exist in nature. n It was introduced to the West in the 19th century. There was an exhibition in 1909 in London where bonsai was declared as a form of art. n In India this art came in limelight about three decades back and since then bonsai societies in big and metropolitan cities have made this art very popular. Chandigarh is a beautiful city, where people are fond of greenery and love to have plants around. The culture of bonsai is catching up fast with the residents of the city where everyone would like to decorate their drawing room with a good specimen.

guest column
The Green code

Conventional buildings are increasingly consuming limited natural resources and thus can steadily deprive our future generations of the already depleting resources. These buildings consume 40 per cent of the world's resources, including 12 per cent of its water, and up to 40 per cent of the energy we use. Conventional buildings produce 40 per cent of waste going to land and generate 40 per cent of all air emissions, including green house gases (GHG). The problem lies in the fact that construction industry is among India's fastest growing sectors, contributing about 10 per cent to the country's GDP and so cannot be ceased or slowed down.

Kamal Meattle, CEO, Paharpur Business Centre and Software Technology Incubator Park

This industry is growing at a rate of 9.2 per cent in our country as against the world's average of 5.5 per cent. By the year 2050, residential, institutional and commercial buildings are expected to consume as much as 38 per cent of global energy production and to release about 3,800 megatons of carbon in the atmosphere.

This kind of GHG emission would be disastrous for future generations as the non-renewable resources are on the verge of extinction.

The only solution in sight seems to be - "Going Green".

Green building is the way forward. The question is not of costs or technology. It is about creating public awareness about the benefits of green buildings, as builders do not normally pay for the operating costs of these buildings. ECBC code for buildings must become mandatory.

In simple words, a green building is the one which uses less water, optimises energy efficiency, conserves natural resources, generates less waste and provides healthier spaces for occupants, as compared to a conventional building. Sustainability is the need of the hour. The general perception is 'adopting green design is expensive and can pinch our pockets, compared to a conventional building. But this is just a perception. A green built home will hold its price over the long run, with green houses being evaluated for 10-20 per cent higher values than similar conventional homes. Such homes help save a lot in terms of lighting, heating/cooling and supply of potable water.

It would not be wrong to say that cost of a green building is only fractionally higher than that of a conventional building, but the overall returns are greater in terms of water and energy consumption.

Green buildings are not different, they are just built differently. Water efficiency is a major component in green building. Efficiency in water management can be achieved through rainwater harvesting, stopping leakages in pipes, dual pipelines for gray water and drinking water as in NDMC area in Delhi since 1930s, drip irrigation, growing food in wet areas and transporting food rather than water and building lined canals.

Today, India has enough water to provide each citizen over 1,820 m3 /year. It is estimated that each individual needs 1,700 m3 to cover drinking, hygiene and food requirements. This availability is expected to drop to 1,140 m3 by 2050.

A very simple way to save energy is to paint roof and west side of walls of one's house white. It will not be incorrect to say that the colour of green is white. This becomes very important for India where currently 22 per cent of the population lives in urban areas and the rest in villages. It is said that two-third of India is yet to be built and this will happen in the next 20 years.

Energy efficiency is achieved through better solar orientation, tighter construction, efficient appliances and the generation of on-site electricity from renewable sources. Energy conservation techniques are enormous; one just needs to find out the right one.

Awareness through media is slowly pushing people to 'Go Green' and become more environment- friendly, however more rigorous efforts are required to make it mainstream. And we can certainly start this revolution by adopting simple green measures in our homes and offices. This would be an effective stride to a Green Revolution.

Conference

Goa Chief Minister Digambar Kamat will inaugurate the "Green building for a Green Goa" conference on September 24 at BITS-PILANI, Goa-Campus. CII- IGBC, under the Chairmanship of Amar J. Britto, MD of the Acron Group, is hosting the conference with a vision to increase green buildings in the country.

The purpose of the conference is to increase awareness among developers, architects, engineers, students, government and hoteliers about the green building movement.

Eminent speakers including Dr. Prem C. Jain Chairman-IGBC, Alwyn Noronha, Executive-VP Projects ITC Hotels Group, Nasser Munjee Economist will address the audience on the occasion.

The agenda for the conference will be to include topics "Role of Government in increasing Green Buildings", "Careers for young professionals in the Green industry", "Green Design Beyond Ratings", "Recycling Historic Buildings", "How existing hotels can become greener and more economical to operate". "Affordable and Green: Ways and Means of squaring the circle". 

REALTY GUIDE
Invest prudently
B K Sanghi

Q. I have one six marla plot in Sector 79 Mohali (worth Rs 90 lakh). I want to sell that but I am confused regarding the right way of investing the sale proceeds. I have Royale Estate in Zirakpur, projects in Mullanpur and Ansal Group's project in mind. I can either buy two flats and give them on rent or invest in commercial property. Kindly guide me what would be the right way of investing the money so that I can get assured returns in future.

— Baldev

A. In real estate it is not advisable to put all your eggs in one basket. Since the property in Sector 79 of Mohali has already reached the saturation point it is advisable to sell the six marla plot and invest the money elsewhere. The sum of Rs 90 lakh is a substantial amount so you should go in for both short and long term investment in both residential and commercial property. Investing in three-four properties, both short term and long term could fetch you better returns. The stress should be on small property and small investment - one-bedroom and studio apartments in residential segment and small booth space in the commercial segment. Look for the property which is at the possession stage in the peripheral towns like Zirakpur, Kharar, Dera Bassi and rent it out which could get good rental returns. Investment in the developed projects is always a wise decision than the projects which are not yet in the developed areas. Also do apply for plots in the upcoming urban estate being floated by GMADA in Mullanpur. The short and the long term investment in both the commercial and the residential segments would give you better returns than investing in two flats.

‘Locking’ the bank

Q. I live in Panchkula and I want to purchase a house after taking a home loan. Various banks are offering house loans. But I am confused regarding choosing the right bank. How do I select my bank?

— Shivani

A. Various considerations would help you to zero in on the bank most suitable for your loan requirements. Analyse the following points before taking your decision:

Loan amount: The minimum and maximum loan amounts vary from bank to bank. Find out if the amount you require falls within this limit.

Duration: There is no lower and upper limit to the tenure of the loan. Find out if the time limit you want it for can be accommodated. This also varies from bank to bank. Normally banks offer loans ranging from five to twenty years, with some going up to 30 years. For NRIs the maximum tenure could be 10 years in some cases. Depending on your requirements, this would have a bearing on the loan you would opt for.

Interest rate: This also varies and is a major deciding factor in finalising a bank. Fix a duration that you want the loan for and find out the EMI from them. Compare and identify the lowest EMI.

Pre-payment: Check if the bank charges for repaying the loan before its due date.

Flexibility: Find out whether you can change your interest scheme from fixed to variable if so desired or if there are restrictions.

Guarantor: Some banks require this, while others don't.

Documents required: These also vary from bank to bank although there are a few standard documents like proof of income, proof of age and residence and a salary slip.

Co-owner: If there is to be a co-owner or co-applicant for the loan, the bank has to accept the relationship between the two.

Other fees: Each bank has different fees for administration and processing among others so check it out.

The writer is president of the Haryana Group Housing Federation. The column appears 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

industry voices
Souring the affordability dream

Expressing its reservations over the land acquisition Bill, realtor’s body CREDAI has said that the land acquired by private companies should not be covered under the land acquisition Bill as it would lead to a sharp rise in the land cost and affordable housing would become impossible

Land Acquisition, Relief and Rehabilitation (R&R) Bill -2011

“Land acquired by private companies cannot be subjected to Land Acquisition, Rehabilitation and Resettlement Bill, 2011. It will only increase the cost of land and concept of affordable housing will be defeated," the Confederation of Real Estate Developers Associations of India (CREDAI) President Lalit Kumar Jain told PTI.

According to the Bill, introduced in the Lok Sabha earlier this week, rehabilitation and resettlement provisions will apply only when private firms buy land for a project — more than 100 acres in rural areas or more than 50 acres in urban areas.

The compensation to land owners would be four times higher than market rate in rural areas, along with other benefits.

Jain demanded that the government should modify the Bill and said, "CREDAI would write to the Standing Committee, once the Bill is referred to it, for giving us an opportunity to be heard."

Royal Institution of Chartered Surveyors (India) Managing Director and Country Head Sachin Sandhir said, "the Bill does not make any distinction between compulsory acquisition and open market transactions and treats the compensation to be given in both cases, equally. While we support compensation, including solatium and resettlement provisions in case of compulsory acquisition, in market transactions between a willing buyer-willing seller, there is no emotional trauma for which a solatium needs to be given and neither should there by any responsibility of the buyer to provide rehabilitation and resettlement in such cases," he added.

RICS is one of the world's leading self-regulatory professional bodies for qualifications and standards in land, property, construction.

"The Bill's current approach, not underpinned by sound valuation and compensation principles, will certainly lead to cost of land becoming many times higher than today, thereby worsening the problem of housing affordability in the country," Sandhir said.

The country's largest real estate developer DLFsaid the government should re-examine the Bill and that the provisions of rehabilitation and resettlement should apply only when the government acquires land.

"Where property transactions are between willing sellers and willing buyers, there is no justification for the government to oppose any condition of relief and rehabilitation," DLF Group Executive Director Rajeev Talwar said.

He said private transactions take place at the market determined rates and give full compensation to the sellers. Therefore, the "conditions of R&R should be imposed only where government acquires land".

Talwar said the government should re-examine the Bill as it would make "land expensive by many times over. These costs will have to be passed on to the buyers of finished products and thereby add to the burden of the common man".

Expressing disappointment over the Bill, CREDAI NCR President Pankaj Bajaj had said, "Farmers' interests have been protected, but the housing requirement of middle class have been completely ignored." Bajaj had pointed out that the land cost would go up by 60-80 per cent because of higher compensation offered to farmers in the Bill and the same would be passed to the consumers. — PTI

"With the country already facing serious problems in augmenting urban housing stock and urban population expected to double and reach 590 million by 2030, the proposed Land Acquisition and Rehabilitation & Resettlement Bill will be a major impediment for the planned development of the country and it may result in increase of slums and unauthorised settlements. The compensation for rural and urban land fixed at four and two times the market value along with reservation of 20 per cent of developed land, annuity and other compensations will almost double the property prices. While benefiting the farmers, the Bill intends to jack up the land cost manifold in the total cost of a housing unit. The impact of this will be the maximum on home buyers as the developers will have no option but to transfer the entire increase to them. It will be a big setback for housing sector, especially low income housing where the shortage is maximum. It may also jeopardise the slum rehabilitation and resettlement schemes. Getting consent of 80 per cent owners before acquisition provided in the Bill is going to be tedious and may delay the acquisition process. Also the 10-year period specified for the condition of projects may not work in the case of township development which is always linked to growth of population and development of internal and external infrastructure. Best examples are Noida and Gurgaon, which have been under development for more than 30 years but are nowhere near, planned the development. Government needs to give a serious thought and listen to all stakeholders before giving the Bill a final ok. Otherwise, the consequences may be serious especially for India which is expecting its growth rate to continue at 8 to 9 per cent per annum. — R.R.Singh, Director General, NAREDCO

A major part of the cost of a house nowadays is that of the land it is built on and not the construction cost of buildings and apartments. By doubling or quadrupling land prices, homes will become unaffordable for all but the super-rich. So much for inclusive growth, where even the middle classes will be de-housed. The compensation package envisaged by the Bill lacks proper assessment and research. The government has to rethink for the middle class citizens of the country who need good and affordable accommodation — Manoj Gaur, MD, Gaursons India Ltd

The Bill, if passed, will increase the cost of acquisition of land to unrealistic level. The reservation of 20 per cent of the developed land for landowners as part of rehabilitation entitlement would make the projects financially out of reach as it will increase the cost of developed land by almost 100 per cent, and this additional cost will be passed on to the buyers. Provisions like subsistence allowance for 12 months and annuity for 20 years are very difficult to implement. — Sanjay Rastogi, Director, Saviour Builder, Pvt, Ltd

The Bill will help those who indulge in unplanned development. It will increase the cost of land acquisition to unrealistic levels. It will be almost impossible to acquire 50 acre or 100 acre land at one place for planned development and urbanisation. If we do not facilitate urbanisation in an organised manner, all incremental population will be housed in slums with dire consequences for the economy. In the long run even farmers will suffer hugely as fringe development of urban centres will largely be in the form of unauthorised developments and they will not realise the true economic potential of their lands. — Getamber Anand, Managing Director ATS Group and Vice President CREDAI