On a shaky ground
The Benami Commission Report has come as a dampner for the realty sector in Himachal Pradesh
Rakesh Lohumi

The realty sector in Himachal Pradesh is on a shaky ground at present due to a serious political fall out of the large-scale permissions granted to outsiders to acquire land in the state and making a mockery of the Section 118 of the Himachal Pradesh Land Reforms and Tenancy Act.

The genesis

Under the law non-agriculturists are not allowed to acquire land in Himachal Pradesh without the prior permission of the government. Even bona fide Himachalis who don’t own agricultural land are debarred from acquiring land in the state.

As a result of this, real estate was never an investor-friendly sector in the state. However, the scenario changed following the enactment of the State Apartment and Property Regulation Act six years ago as permissions were granted to big builders to acquire land and construct flats on a large scale. This Act was enacted with the purpose of setting up housing complexes consisting of 20 dwelling units for the labour class within a radius of 10 km of an established industrial area in the state. But after it came into effect, permissions were granted to several players indiscriminately.

The problem

Over 250 builders have been registered under the Act and 71 licences have been granted to allow construction of over 12,000 flats since 2006. So far only two builders have submitted completion certificates. Moreover, the big chunks of land acquired for setting up private universities, tourism projects and industrial units virtually opened the floodgates for the outsiders making things worse in this ecologically fragile hill state. Land is scarce in the hills and the very purpose of the Section 118 was to protect it so that the poor hill peasants were not rendered landless. However, the political bosses converted it into a convenient tool to facilitate the diversion of agriculture land and oblige outsiders. Influential politicians, who could manage permissions from the government, virtually became property dealers after this Act.

Panels look for a remedy

As land has been a very sensitive issue in the state, allegations that the government was patronising land mafia started flying fast and thick. In fact, the main opposition Congress made “Himachal on Sale” as its theme song to target the BJP government inside and outside the Vidhan Sabha. The government was forced to set up a Select Committee of the House to examine whether or not the state required the Apartment and Property Regulation Act and a judicial commission to probe benami land deals.

Not surprisingly, both the Select Committee and the one-man commission headed by Justice D.P. Sood have recommended scrapping of the Act.

The government has so far not taken any action to repeal the Act, rather it wants to suitably amend the State Town and Country Planning Act to take care of the regulatory role. It has observed that the state-owned HIMUDA (Himachal Pradesh Urban Development Authority) was enough to meet the housing demand of Himachalis in the state and there was no need for private builders who are creating concrete jungles and spoiling the natural forested environment of the state.

The moot question, however, is whether there is any need for housing? The latest census data reveals that the percentage of unoccupied houses in urban areas has increased in Solan from 15.3 per cent to 22.3 per cent, and in Shimla from 17.9 per cent to 20.3 per cent and in rural areas in Solan from 8.1 per cent to 11.6 per cent and in Shimla from 12.6 per cent to 14.7 per cent, respectively. Ironically, almost 90 per cent of the housing projects have been allowed in these two districts of Shimla and Solan.

The commission has made many other very relevant recommendations that will help save the precious agriculture land and limit the scope for corruption in land deals. But experts opine that these recommendations will severely dent the realty market here. The commission has suggested that in order to check frequent sale and purchase of a piece of commercial land, the government should impose a moratorium of 10 years. During the course of inquiry the commission came across instances where certain persons had purchased land in bulk and later sold it to industrialists within a period of six months to three years. The commission also recommends that the re-sale and change of land use should not be allowed in case of land purchased under Section 118. Re-sale of commercial land purchased after special permission should be allowed in ‘rarest of rare’ cases. If the land is not used for the purpose it was meant for, then it should be taken over by the government.

The verdict of the apex court holding the sale of immovable property on power of attorney as invalid has also come as setback for the real estate sector. With Section 118 in place, a large number of land transactions were effected on the basis of power of attorney.

As the Assembly poll draws near in the state, the Congress will raise the pitch on misuse of Section 118 and opening of floodgates for outsiders and both the main parties are likely to promise to plug the loopholes in the law. Thus, the realty sector faces an uncertain future for now and a clear picture will emerge only after the Assembly poll.

But for those who still want to own a house in the hills, the safest and best option is to buy a house from HIMUDA, which is a statutory body, and there is no need to get government permission to buy a residential unit from HIMUDA, which is mandatory in the case of private realtors.

Recommendations 1) To check frequent sale and purchase of land the government should impose a moratorium for 10 years. 2) The transfer of land on the basis of GPAs may be banned. 3) Allow resale of commercial land only in rare cases 4) The demand of Himachalis for flats can be easily met by HIMUDA, hence no private player should be allowed to operate in the state 5) If the government cannot enforce the Section 118 in letter and spirit, then it should be scrapped rather than allowing big builders to purchase huge chunks of agricultural land, defeating its very purpose.

Avoid the rain pain
Utsav Shukla

Cracks in the roof slab or improper drainage of rainwater often lead to leaking roofs during the rainy season. All cracks should be filled with an adequate sealant to avoid this problem

After the sweltering heat wave the refreshing rain showers appear like manna from the heavens. But monsoon is also the time when your apartment and house need a lot of attention and care. It goes without saying that monsoon showers and the consequent water-logging can cause heavy structural and aesthetic damage to any building. Common problems during the rainy season are water stagnation, cracks, leakages, power cuts etc. If one makes adequate preparations and takes precautions before the rains set in, then monsoon will truly be a time to rejoice and enjoy the beauty of rains in your apartment or house. If you are looking at fixing that leaking ceiling or crack in the wall now is the best time to do it, says Ajay Singal, Director, Avalon Group. Here are some tips to keep your home in good health in monsoon season.

Terrace turf

There are a few areas in each apartment that require regular maintenance. Start your maintenance spree from the terrace. Most of the terraces are laid with brick-lime jelly and pressed tiles or brickbat coba for providing nominal slopes on the roof slab to drain off water through the rainwater down-take pipes. Care should be taken to provide proper slopes on the slab to prevent the rainwater from collecting on the terrace. All open tile joints should be filled with a polymer-modified waterproof mortar and sealed properly. Replace the damaged tiles immediately.

Terrace should be cleaned properly so that the debris don't clog the pipes.

It has been seen more often than not that roofs start leaking after couple of days of incessant heavy showers. According to Dr. Najma Rizvi, an ex-faculty member of Delhi-based School of Planning and Architecture, residents of apartments face this problem very frequently. If you live on the top floor, there are strong chances that your roof would start leaking as rain water collects there. How can one prevent this situation? "It is very unfortunate that due to differences among members of cooperative group housing societies and other private apartments, generally no effort is made to allow proper drainage of water on the roof", says Sanjay Khanna, Director of Kailash Nath Projects Pvt.Ltd. He advises that roof should have sufficient gradient to quickly drain out the water that collects after a heavy downpour and terrace floor should be leveled by applying cement plaster.

"If you see or find cracks in the roof slab, get it covered properly", says Sunil Jindal, CEO of SVP group, which is building a lot of commercial and residential buildings in the NCR.

Plug seepage

As water has a tendency to take the weaker path, the entry of water from the terrace of even the 9th or 10th floor can cause leakage in the ground floor or any other floor of a building. Also, leaks may take place through cracks on the top and sides of the parapet walls leading to water seeping into a building. Improper sealing of the rainwater downtake pipes also leads to seepage in the walls/slab of an apartment block.

According to Singal, "Cracks in the internal /external walls occurring due to various reasons can be a source for water ingress in to the building. All cracks up to 5 mm should be cut-open up to a width and depth of 5 mm and filled with a movement accommodative acrylic paintable sealant.

Fight fungus

The ingress of water into a building leads to dampness in the internal walls that, in turn, causes fungal growth which causes staining and discolouration. To avoid this the source of leakage has to be plugged.

In order to prevent seepage through walls, the terrace wall surface should have a gentle slope towards the inner side of the building. This will cause the water to flow onto the terrace instead of flowing along the wall's outer surface to the ground. Azmal Zaheer Khan, a noted architect working for Kothari and Kothari Associates in capital, says, "If you have a large balcony or an open sit-out area, ensure that the rainwater doesn't collect there for a long time. This is more important when you have marble flooring in these areas. The gradual action of slightly acidic rainwater may discolour, damage or even eat away the costly marble".

De-clog drains

If there is rain, can clogging of drains be far behind? Always check drain pipes regularly to ensure that they are not clogged. Placing an iron mesh at the mouth of the drain pipes is an effective method to prevent the clogging of drains.

Green trends
‘Efficient’ abodes
Forget modern furniture and bright walls and fine drapes. The latest trend is to make the home eco-friendly and energy effiicient
Neerja Bahadur 

Bought a new apartment or re-furbishing an old one? Go ahead, buy what you want but do things in sync with the environment. Become a new age eco-warrior and make some seminal changes in the way you live. By making relatively simple alterations in the way you use energy at home you can drastically cut your fuel bill and also the amount of carbon dioxide generated in the atmosphere. Here are some ideas to make your home less dependent on artificial energy.

Get in as much of the natural light as possible. Opening your curtains can cut your electricity bill considerably and save 125 190 kg of carbon dioxide annually. Sunlight will eliminate the use of artificial light and also make your home look brighter.

'Natural' warmth

In winters it would be a great idea to abjure the use of electric heaters. The wind proofing of your windows and doors with simple plastic or metal strips can save you around 300 kg carbon dioxide emission a year besides making your home 'naturally' warm. You can make a geyser more energy efficient by insulating hot water pipes attached to it. This can save 60 to 125 kg carbon dioxide emission annually. In fact, insulating the full geyser will further reduce the emission of carbon dioxide by around 200 kg annually.

A bucket bath uses far more water than a shower. So get under a shower that uses one fifth of the hot water that is consumed in conventional bathing resulting in saving of around 125kg of carbon dioxide a year. If there is a dripping water tap in the bathroom or kitchen, it can waste a bucket full of water a day. So it is imperative to ensure that taps are turned off properly. 

A powerful switch Of course you can't have a house without lighting. Switch to CFL bulbs. Although they cost more, low energy CFL light bulbs use only half of the electricity of an incandescent bulb and last up to eight to 15 times longer than a conventional light source thus providing you with adequate light and savings at the same time. Old electric gadgets can mean inflated electricity bills and high energy wastage. Exchange your old refrigerator and other electricity and power gadgets for new energy-efficient models. They can save you considerable amounts in electricity costs. Look for the new energy-efficiency label on these gadgets and buy only those that are most environmentally compliant. They may cost a bit more but will prove to be cheaper in the long run due to lesser electricity bills. The modern mantra is to use air conditioners as sparingly as possible. But if you must use them then buy one with temperature control. The idea being that whenever you don't want too much cooling you can turn down the thermostat which will save considerable electricity and save energy.

Water-saving techniques It is a great idea to replace the conventional toilet with a modern one having a pressurised low-flow alternative. This will save several litres of water a day while generating cost savings in terms of water bill. You can also save water and electricity while using a washing machine. Whenever possible wait until you have a full load or use the economy programme if your washing machine has one. This will save a lot on the consumption of water and power. Rain-water harvesting at home is the most cost-effective technique of natural replenishment of ground water. This water will not just come in handy on a non-rainy day but will also make the surroundings greener and more environment friendly. Micro cooking As far as cooking is concerned you must remember that microwaves use less electricity than conventional ovens and are best for defrosting, or heating up cooked food. Like pressure cookers, they are very fast in their job and take up just 10 per cent of the time as compared to other conventional methods. So it makes a lot of sense to switch to as much microwave cooking as possible. It will save money as well as time. Similarly, discard the conventional saucepan for the power of the pressure cooker. There is no difference in the taste but a lot of difference in the LPG bill. A pressure cooker will save you a lot of cooking gas as the time for cooking will be considerably shortened. Look around and you can think of many more ways of conserving electricity, water and energy around the home. This will not just cut costs but make your home eco-friendly and truly green resulting in lowers costs and a life as close to nature as possible.

Green house
Choice matters
Points to remeber while buying plants from a nursery
 Maj Gen C.S. Bewli 

The easiest and the best way to add variety and lots of colour to your garden is to include flowering perennials and annuals of different species. And the best place to get these is a plant nursery. But it is not an easy job to select the right and healthy plants from a nursery. Choosing the right plants or saplings goes a long way in giving the perfect look to your garden. Diseased plants that wither soon mar the beauty of a landscape and also mean a waste of money and effort. Whether you are looking to buy annuals, perennials, vegetables, or any other plant, the first picture which you have in mind is that of a good looking healthy plant that is free from diseases and insect issues. The choice whether to buy shade-loving or sun- loving plants depends upon the location where these have to be placed.

If you have not decided which plants to buy, then it is best to have a look at the whole range of plants available in the nursery. Don't be in a hurry to buy the first ones that you see. Take your time and shortlist the plants as per your need. Once you have decided on the plants, select the ones that look to be the healthiest.

Here are some of the tips that will guide and help you to arrive at a right decision in selecting plants from a nursery.

l Unlike annuals, the other house plants may be kept in the nursery in a congested environment for about a year or so, during which period they are likely to get infested with harmful pests. Have a close look at the plants and examine the undersides of the leaves. Look for mealy bugs, spider mites, aphids, caterpillars, scales or any other harmful insects. If you buy an insect infested plant then these pests can infect your other healthy plants and ruin your collection and garden.

l The foliage speaks for itself and reflects the health of the plants. Leaves of a plant should not be pale or faded green; this could be a disease or a sign of a nutrient deficiency, including pect infestation. On the contrary if the leaves of a plant are shiny and bright green then the plant is sure to be healthy.

l If you are buying potted plants then check the pot bottom. Roots jutting out of the pot or polythene bag give a pretty good idea that these have completely filled up the pot and are looking beyond it for nutrients and water. Plants with fresh and small roots coming out from beneath the pot are acceptable, but plants with big and old roots may not do well in the garden even after transplantation.

l If possible, try to avoid plants that have weeds in the pot, as it indicates that these plants have been neglected and have been in the pot for quite some time. Not only this, some weeds spread very fast and if these happen to enter your garden, it's not going to be an easy task to get rid of them.

l A vast majority of plants sold in nurseries all over the country are in poly-bags or in small conical clay pots with clayey soil. These are usually shipped from Kolkata, Bangalore, Pune, Saharanpur and Dehradun. This type of soil is ok for a short duration, but all these plants need re-potting with nutritious compost for their better growth.

— The writer is the President of National Cactus and Succulent Society of India.

tax tips
Can I sell a house occupied by a tenant?
S. C. Vasudeva 

Q.Kindly clarify the following points:

l My late father constructed one house and willed it in my name in 1994. He gave this house on rent ( to a retired. officer) in 1994, but no agreement on stamp paper was made at the time. The terms and conditions of rent and use of house were written on a plain paper and were signed by my late father, the tenant and witnesses. A carbon copy of it was given to the tenant and the original copy was retained by my father. Can it be considered a valid document?

l The tenant has been living in this house for the past 16 years and has been paying rent regularly without any problem. I also don't require this house as I have been given three rooms by way of Will by my father in our ancestral house in the same city. Can I get the rented house vacated from the tenant and give it to another tenant for a higher rental?

l Can I sell the said house on the basis of my name entered in the municipal records in 1994 as owner? I have paid house tax also and the electricity meter was also installed in my name on the basis of my father's Will. However, this house is not registered in my name nor is the Will registered anywhere.

l Will it be possible to sell the said house even if the tenant doesn't vacate it?

l Which documents will be required to sell the house? — m.s. malik

A.Your queries are replied hereunder:

l The document executed by your father in the shape of understanding on a plain paper detailing the terms and conditions of rent etc. duly signed by your father and the tenant and attested by two witnesses is not an invalid document. However, the position with regard to the nature of tenancy will have to be ascertained with reference to the applicable Rent Control Act.

l You have to approach the competent court for getting the house vacated for which you will have to engage a lawyer.

l You can sell the house. The purchaser would require the original Conveyance Deed in the name of your father and documents in evidence to support the claim that you have now become owner of the house after the death of your father.

l The house can be sold even if the same is not vacant. Its selling price would, however, be lower as compared to the price which it would have fetched if it was vacant.

What is the right way to save tax?

Q.I sold a house with some vacant land in January, 2012 for Rs 37 lakh. The long-term capital gain for this deal is Rs 20 lakh. Another residential plot was sold in March, 2012 for Rs 12 lakh and had a LTCG of Rs 6 lakh. How can I save tax on the long-term capital gain from these two deals?

My queries are:

(a) I have booked a flat for Rs 50 lakh in January, 2012. The likely date of possession of this flat is August, 2013.

(b) I have purchased a residential plot for Rs 19 lakh in May, 2012. In case I do not get the possession of the flat within two years from the date of sale of my first property, how can I use the proceeds/LTCG from the sale of my two properties? In such a case should I purchase capital gain bonds also to save tax. — raghbir kanwar

A.The purchase of a residential plot would not entitle you to claim exemption from tax on long-term capital gain arising from the sale of a house/plot. So, in case, you feel that there will be a delay in getting the possession of the flat that you have purchased, you should utilise the amount of long-term capital gain to purchase tax-saving bonds within six months of the date of sale to claim exemption. These bonds have a lock-in period of three years and carry interest at the rate of 6 per cent per annum.

Is investing in tax-saving bonds the right decision?

Q. In reply to some queries you have suggested that the net consideration i.e. full sale proceeds of property within MC limits is to be utilised within two years for buying a built-up flat or under-construction house. Kindly advise if the net consideration in full is not utilised to buy a flat, then can the balance amount of the sale proceed be utilised to purchase tax-saving bonds.

Also please advise me in the following matter:

Net sale proceed Rs 18 lakh (property sold on July 4, 2011)

Index cost Rs 1 lakh (inherited property)

LTCG Rs 17 lakh

I purchased a flat for Rs 32 lakh jointly with my son according to the initial agreement with the builder. I paid Rs 15 lakh from the sale proceeds from the above mentioned property in December, 2011.

My son took a home loan for Rs 15 lakh to pay the rest of the cost of the new flat also in December, 2011. In fact, my son and me are co borrowers of the home loan. The balance amount of Rs 2 lakh will be paid to the builder at the time of taking the possession of the flat in June 2012 and besides this the registry of the flat and other documentation will cost another Rs 2 lakh. My son intends to pay this amount from his savings. I deposited Rs 3 lakh (balance of the sale proceeds: 18-15 lakh = Rs 3 lakh) in NHI tax-saving bonds in December, 20 l1. Please advice whether I am right in purchasing the tax-saving bonds for the balance amount of the sale proceeds. In case it is wrong to purchase the bonds of the balance of net consideration

l Should I deposit Rs 3 lakh in a separate bank in the capital gain account before July 2012 or the submission of ITax Return, and

l Can this amount be utilised for making payment to the builder also for the registry of the flat from my own account-existing balance of Rs 3 lakh in June.

Please advise how the registry should be made so that

l Rebate of capital gain can be taken by me and

l IT rebate of the entire interest and principal amount is claimed by my son who is paying EMI for the home loan from his own sources/salary account.

l Will just a letter from me to this effect will be sufficient? We are not going to live in the flat in the year 2012-l3 — savita

A.According to the provisions of Section 54F of the Income Tax Act 1961 (The Act), in case the cost of the new asset is less than the amount of net consideration, the exemption is restricted to so much of the capital gain as bears to the whole of the capital gain in the same proportion as the cost of the new asset bears to the net consideration.

l On the basis of the above, in case you invest Rs 15 lakh towards the cost of the flat, you are entitled to claim an exemption to the extent of Rs 14.16 lakh only. Therefore, the acquisition of tax-saving bonds for Rs 3 lakh within six months of the date of sale is a correct decision.

l I would advise you to invest another Rs 1 lakh towards the cost of the flat so as to become owner of the one half share of the flat.

l It would be advisable to clarify in the Conveyance Deed of the flat that you and your son have 50 per cent share each in the flat and that your son has made payment to the extent of one half share by taking a loan from the bank to the extent of Rs 15 lakh and balance from his own sources. This may enable your son to claim the benefit of deduction under Section 80C as well as under Section 24 of the Act.

Get mutation record straight

Q.I have a property in municipal limits in Ambala Cantonment. The mutation for this property has already been done with the MC. Is it required to be done with the Patwari also? — sudhir gupta

A.It would be advisable to get mutation done in the records of Patwari also in respect of the property owned by you in Ambala Cantonment.

Selling too soon increases tax liability

Q. I sold my flat in Pune in January for Rs 40 lakh. I had purchased this flat in 2004 for Rs 11.5 lakh. In order to avoid paying the long-term capital gains tax, I purchased a residential plot in Mohali for Rs 37.5 lakh within one month of selling the flat in Pune. But I don’t plan to carry out construction work on this plot, and now I want to sell this plot soon and invest the money in another property in Zirakpur. Kindly clarify that what tax liability in case I take this decision. — kulwinder singh

A.You would be liable to pay tax on the long-term capital gain of Rs 21,19,271 arising on the sale of Pune flat in case you decide not to avail exemption under Section 54 of the Act and sell the plot purchased at Mohali. Tax would be payable on the aforesaid capital gain @ 20% plus education cess of 3% thereon.

l Apart from the above, you would also be liable to pay tax on short-term capital gain arising on the sale of Mohali plot. Such short-term capital gain would be added to your total income and brought to tax at slab rate applicable to such total income.

l In case you decide to purchase residential house property at Zirakpur within two years after the date of sale of Pune flat, you should deposit the amount of capital gain arising on the sale of Pune flat in a bank under the capital gains scheme before the due date of filing your tax Return. You can utilise such amount towards the purchase of a residential house within two years.

email your queries to sc@scvasudeva.com ...

Q. I had purchased one flat in Panchkula in February 2009, and got it registered in my name in March 2009, by paying applicable stamp duty.

Now I want to know

l Whether I need to pay any more amount to the housing society for membership change?

l How much is this amount? Is there any formula for calculating it? Is this amount the same for all societies or differs from society to society?

l What are the documents and certificate which the society should give to me after membership change?

l Does a change is required to be made in HUDA records also?

l What is the procedure for it? Will this application be through the society or directly by me?

l If a change is required in HUDA records, then can I directly apply for it on the basis of being the registered owner and without being a member of the society?

l Besides these, is there any other change also to be made anywhere else? 
— tarun garg

A. All the issues of apartments (flats) of societies in Haryana related to ownership and other issues come under Haryana Apartment Ownership Act, 1983 (Rules framed in 1987) implemented on November 10, 1997 in the state of Haryana.

As per this Act, the management of a housing society is the custodian of all the apartments and the record of the ownership of apartments and common area and services. So change in society record is a must. You have made an incomplete transaction in 2009. First of all you need to check whether any dues are left in the society records for the above said apartment. If the dues are clear then you need to follow the norms and procedure laid by the management of the society and fulfill all the requirements. For this you need to contact the management office of the society and get your membership.

There are some administrative charges for membership change which differ from society to society.

The management of a society will issue receipts for the charges and fees paid by you and would also provide you with Share Certificate in case it is a co-operative society or Membership Transfer Certificate in case of an association and other related documents. After this you will become a bonafide member of the society.

HUDA never entertains an individual member of a society. It deals only with the management of the society.

email your queries to realestate@tribunemail.com ...

Vaastu wisdom
Planet-direction connect
Madan gupta spatu ...

Q. I am confused about which planet represents which direction as per Vaastu principles. Can you enlighten me on this? — ravi moudgil

A.Each direction is represented by a planet. East - Ravi (Sun); Southeast - Shukra (Venus ); South - Angaraka (Mars ); Southwest - Rahu ; West - Shani (Saturn); Northwest - Chandra (Moon); North - Budha (Mercury); Northeast - Guru Ketu. 

Slope facts

Q. I have finalised a plot with a slope towards the north and east. Is it ok to buy this kind of plot? — ram yadav

A.A lower level in the northeast allows the positive magnetic energy coming from the north and the positive solar energy (ultraviolet rays) coming from the east to enter your property and house. This downward slope to the northeast allows water to flow there and absorb the positive energies. Then this positive magnetic energy can flow unobstructed to the southwest where it is deposited. The higher level in the south and west protects you from harmful gamma and infrared rays.

Global appeal

Q. My son lives in Australia and has asked for some Vaastu advice. I want to know whether the same principles of Vaastu are applicable in different geographical areas around the world? — partap singh

A.Yes, the basic principles of balancing the five elements are applicable throughout the world. By using the principles of this science, buildings can be designed to harmonise with the different climatic conditions of each region. Though it goes without saying that North Pole and South Pole can't be treated equally, the geographical conditions have to be kept in mind. For example homes in Japan will be constructed keeping the frequency of earthquakes in view. Your son can follow the basics in Australia and be guided from the columns that have been published on this page through the Internet. 

Time for reforms

The Confederation of Real Estate Developers’ Association of India (CREDAI), the apex body of real estate developers, has laid stress on the need for comprehensive reforms to check black money and corruption in the sector. The developers’ body also highlighted the need for single-window system for project clearances to cut down time and chance for corruption.

“There is a need for all-round reforms to end corruption and check black money in realty,” CREDAI National President Lalit Kumar Jain said recently.

It has sought reforms in four key areas including administration, land, taxation and banking, which impact the real estate.

“There has been a lot of talk on this, but no action. We, too, hate the system that labels us as crooks and breeders of black money. There is a need to realise that the various bottlenecks at government level at Centre and in several states are equally responsible for this menace,” he said.

He pointed out that the economic reforms initiated by Prime Minister Manmohan Singh 20 years ago saw the end of the ‘Licence Raj’, but there are still many controls on the real estate sector. There are over 40 clearances that a developer is supposed to get, which leads to human interaction with over 150 officials at various stages, he said, adding any delay at any stage obviously gives rise to ‘greasing of palms’ as the developer is always anxious to finish the project on time.

Jain further said the restricted land use and continued pressure on land availability is also one of the causes of high costs of inputs and the resultant sale price. He also pointed out that there is no clarity on land policy and no control over cost of funding and other inputs.

“Every rupee invested in real estate sector, contributes to addition of 78 paise to GDP,” he said, adding, “developers are ready to play their role but at the same time, we want the governments to play the role of facilitator,” he said. — Agencies

Projects and launches
New towers at Orchard County, Mohali

Ansal API recently launched Tulip and Carnation Towers at its Orchard County project on the Kharar-Landran road in Mohali. The new towers will have 3 and 4 BHK apartments measuring between 1695 sq ft and 1806 sq ft, and 4BHK apartments in area ranging from 1770 sq ft to 1796 sq ft. Giving details of the project Vikas Gupta, Vice-President, Punjab, said, "These apartments will have laminated wooden flooring in all bedrooms, modular kitchens and individual RO. The two towers will have 17 storeys each and as many as 185 premium apartments are on offer". The new apartments are priced at Rs 3,500 per sq ft and a 4 BHK apartment will cost between Rs 60 to 70 lakh. According to Gupta the apartments will be ready for possession in 18 months. Speaking about the immense potential of the tricity region for real estate investment he said, “Mohali is witnessing a tremendous growth in terms of job opportunities and people are migrating from all across India to set up their base in the city. Another advantage is its proximity to Chandigarh which happens to be one of the few well-planned cities in the country. Hence, we realised the opportunity of huge requirement for housing here. ". — TNS

'Spring Leaf' at TDI City

Taneja Developers and Infrastructures Ltd. (TDI), has launched 'Spring Leaf', premium luxury floors in its TDI City project in Sector 117-118, Chandigarh-Kharar Road, Mohali. 'Spring Leaf' is a premium residential offering consisting of a limited number of exclusive floors in G + 2 configuration with individual floors on a 200 sq. yd plot.

Speaking on the occasion Sanyam Dudeja, COO-Punjab, Taneja Developers and Infrastructure Ltd. said, "Offering exclusivity of independent floors, residents of Spring Leaf will enjoy the advantage of being pampered by a host of modern amenities and facilities for a contemporary lifestyle. These 3-storey residential floors are priced at Rs 37.25 lakh onwards."

Aranya

Raheja Developers recently launched Aranya, The Green City, in Sohna. Located on the Gurgaon-Sohna Road, this integrated township is 12 km from the residential sectors of

The 108-acre integrated township project will have plots of different sizes up to 822 sq yd, group housing condominiums, penthouses, designer homes and villas. The initial price of plots has been quoted as Rs 28,575 per sq yd. Giving details of the project Navin M. Raheja, the Chairman and Managing Director of Raheja Developers, said, "The USP of Aranya is its the location, easy connectivity and the proximity to IMT Sohna, a 1,700-acre industrial estate planned by the Haryana government. Land has already been acquired for this project. IMT Sohna, only 1km from Aranya, will be a destination for thousands of crores of investment in the near future, employing thousands of people.

IMT Sohna will surely enhance the prospects of Aranya as a residential and retail destination for the thousands of people employed there. The value of investments would multiply at a tremendous pace once this industrial estate is up and running. Also, the Delhi-Mumbai dedicated freight corridor is located in close proximity to this place, and all these mega industrial estate and infrastructure corridors, along with the KMP corridor, would only add to the value of investments here."

New towers for defence personnel

Gaursons India Ltd. group recently launched two new residential towers for defence personnel in their project Gaur Cascades in Raj Nagar Extension on NH-58. Both the towers are completely dedicated to defence personnel and have been christened Commander Towers. Dedicated towers in Block F & G will have 240 units. The group has also signed an MoU with Jupiter Infrastructure (Bangalore) Pvt Ltd which is working for the past four years to complete the housing needs of defence personal. Speaking on the occasion, Sanjeev Varshney, VP Sales & Marketing, Gaursons India Ltd, said, "Our main motto is to provide complete residential bunch of quality shelter with luxury at affordable prices to the defence personnel". Gaur Cascades is spread across 10 acres and will have varied options in 2, 3 and 4 BHK apartments in sizes between 1190 and 2400 sq.ft. There will be around 1080 units in Gaur Cascades.

Rental service

Groffr.com, group discount portal in real estate has launched Rent a Flat ( http://www.groffr.com/rentaflat/) service which uses Facebook to help people in renting / PG / finding roommates in an easy way. “We believe Social Media will be a big change agent for how real estate transactions happen in India. And at Groffr.com, we want to be at the forefront of this change”, says Sandeep Reddy, Cofounder, Groffr.com

— As per information provided by the developers

Pick of the week
A green rooftop

Rooftop solar specialist Gautam Ploymers has launched Solid Sun-Shade Solution that harnesses solar energy making residential as well as commercial buildings energy-efficient and eco-friendly. This rooftop solar power plant enables residential, commercial and industrial institutions to go green as well as increase the value of their rooftops by putting these to productive use.

A rooftop solar power plant works by generating electricity from the photovoltaic modules put up on the roof and feeds it to the building for its internal consumption.

A 100KW rooftop solar power plant covers 1500 sq m of roof area reducing the peak electricity demand on power grid & DG sets while simultaneously improving local air quality.

When fully powered, the solar system is capable of generating approximately 1.5 lakh units every year, which is equivalent to lighting 1500 rural homes and reduces 10,000 tonnes of greenhouse gas emissions over the life of the solar plant.

Solid-Sun-Shade Solution can be installed or set up in residences, institutional buildings, real estate projects and commercial enterprises and does away with the dependence on electricity grid , cuts down electricity cost, improves local air quality and promotes energy security.

This solar power plant ocan be of great help to developers and builders as e it offers an opportunity to give a visible green image to a commercial complex or a housing complex and reduce the diesel expense. This also increases the value of the rooftop which can be used as an open air café, green meeting place, roof top garden or simply a leisure place.

Moshe to design project in Sri Lanka

Indocean Developers (Pvt) Ltd, a venture of Indian property group South City Projects (Kolkata) Pvt. Ltd. (SCPKL), has commissioned well known architect Moshe Safdie to design an iconic 65-storey residential tower in Colombo, which will be the tallest in the Sri Lankan capital. Safdie is a globally acclaimed celebrity architect known for his Marina Bay Sands in Singapore — the world's largest gravity-defying cantilever structure. The $ 400 million mixed-use project over two acres facing the Beira Lake, overlooking the Indian Ocean will comprise a mix of high end retail stores, restaurants, spas and residential apartments. Sri Lanka is currently experiencing a decent economic growth of 8 per cent and the growing urbanisation across all cities is providing thrust to quality housing and retail development in the region.

Safdie has also been associated with the Khalsa Heritage Memorial Complex in Anandpur Sahib. The 400-apartment development by Indocean is expected to be launched shortly, with piling commencing in August. 

Rental gains

According to the latest Asia Pacific Office market report from Cushman & Wakefield that compared the rental values of Central Business Districts (CBD) across Asia Pacific NCR was ranked the fifth most expensive CBD location in the region while Mumbai CBD ranked 10th most expensive location in APAC. Traditionally expensive office destinations of Hong Kong, Singapore and Tokyo (continued to hold the top three positions, respectively.

Among a total of 25 cities across Asia , Bangalore and NCR saw the highest rental value rise in office market rentals in Q1 2012 (Quarter ended March 2012). Bangalore CBD recorded an increase of 18% while NCR – CBD recorded an increase of approximately 14% over the previous quarter (quarter ended December 2011).

Commenting on this trend, Ravi Ahuja, Executive Director, Office Transactions, Cushman & Wakefield India, said , “There has been a clear preference for cost efficient locations which is the reason why traditional high cost locations have seen a slight correction, while cities such as Bangalore, New Delhi - NCR and Bangalore have seen a stable rise. These markets are high on the value proposition with inherent demand for services / products as well as provide quality work force.” — TNS