The Tribune, Chandigarh, India

	area watch: rajpura Stagnation stings Locational advantage, an upcoming thermal plant project and an ambitious master plan have so far failed to add zing to the real estate market in this nodal town of Punjab Umesh Dewan Rajpura known as the ‘Gateway to Punjab’ is fast becoming the victim of the illegal residential colonies. Not only are residential townships in the Rajpura municipal council limits coming up without requisite approvals, but colonies and commercial establishments on the Rajpura-Chandigarh Road and Rajpura-Patiala Road are also unapproved. Though, when one of the largest engineering companies — Larsen & Toubro Ltd started the setting up of the 1400-MW Thermal Power Project in Rajpura, some two years back, it was expected that the real estate activity on the Rajpura-Chandigarh and Rajpura-Patiala roads will gain momentum and land prices in both these areas will go up. The realtors were expecting that the thermal plant project and the proposed master plan for the Rajpura would not only bring physical infrastructure to Rajpura, but would also make the real estate sector flourish. However, two years down the line, things have turned to be otherwise. Though Rajpura offers excellent investment destination because of its locational advantage and proximity to Chandigarh, the real estate sector here is passing through recession. Despite the presence of large scale industries such as Hindustan Unilever, Siel Chemicals, Amber Enterprises Limited, Amrit Banaspati and the under-construction Rajpura Thermal Plant, the sale-purchase activity in and around Rajpura has failed to witness the expected boom. Though there are many reasons for this tepid market, the main reason is that villagers in the Rajpura are strongly against the acquisition of land for different projects due to which big investors are not interested in starting any major venture here. Speaking to The Real Estate, Ramesh Kumar of Mahalaxmi Proper Dealers, said illegal colonies were mushrooming without any check within the municipal limits of the Rajpura and this had led to haphazard urban housing development. “Several unapproved colonies are thriving on the outskirts of Rajpura (the present price of land is between Rs 4,000 and Rs 5,000 per sq yd), and this clearly indicates the lack of demand for property. In Rajpura town illegal colonies have come up in several areas, including Dakansu, Green Phase and Chauhan Colony,” he said. However, the two areas in Rajpura that have witnessed a considerable increase in the land prices are Madhuban Colony and Kanika Gardens. “While a few years back, the land rate in Madhuban Colony was just Rs 3,000 per sq yd, today the land prices have increased four times. Likewise, the land prices in Kanika Garden have gone up to Rs 30,000 per sq yd,” said Ramesh. Overall the realty market, especially the residential segment has been stagnating in this town. As Ashok Verma of Ashoka Real Estate says, “the land prices on the Rajpura-Chandigarh Road have remained stable for the past two years.” The land prices on the Rajpura-Chandigarh road, near the Gian Sagar Institute are about Rs 4,100 per sq yd for the past almost two years. On some stretch along this road the prices are about Rs 6,000 per sq yd. “Because of the recession, the real estate market is down and the sale-purchase activity is on the low,” says Verma while adding that prices in localities along the Rajpura-Patiala road had seen some appreciation. “The prevailing land rates on the Rajpura-Patiala road are between Rs 8,000 and Rs 11,000 per sq yd,” he informed. Ajay Kamal of Punjab and Himachal Property Consultants said that apart from the slump in the market, the ban imposed on the registry by the administration has also affected the real estate sector in the recent past. “Because of the ban on registries the sale-purchase activity has nosedived further,” he rued. What is interesting is that many real estate consultants in Rajpura said that when the Rajpura Thermal Plant Project had got underway, it was expected that new townships and residential colonies would come up in the area, to cater to the housing accommodation requirement of the thermal plant staff. But contrary to that a majority of the thermal plant staff has so far preferred to take accommodation in Zirakpur because of its proximity to Chandigarh and the availability of good flats in that belt. “Once the plant is commissioned and the master plan is notified, things may change and the real estate sector in and around the Rajpura may flourish”, said Jagjit Singh, a local real estate consultant. Master Plan Rajpura is an important sub-division of Patiala district and its location is very ideal as two national highways cross through it. Rajpura acts as mid-point between Amritsar and Delhi and is the first railway junction of Punjab and Delhi — the Amritsar Railway Line. Recognising the need for regulating the development of Rajpura, the Punjab Government had declared a Local Planning Area Rajpura (LPA Rajpura) in December 2007. Chief Town Planner, Punjab, was designated as the Planning Agency to prepare the master plan of LPA Rajpura. LPA Rajpura comprises 166 villages and the master plan was drafted in a manner that all sections of society, including the public sector, private economic sector and the social sector had a fair representation. The main aim was to develop industry, trade and commerce in Rajpura by striking a balance in the distribution of pre-dominant land uses with enhanced connectivity through road, rail and freight corridor in an environmentally sustainable manner. The draft master plan was prepared and objections were heard. In the master plan, the land-use zones had been proposed for LPA Rajpura residential zone, the commercial zone, wholesale and warehousing zone, industrial zone, logistic zone (corridor), mixed-land-use zone and rural and agricultural zone. An extensive road network has also been proposed for the master plan of LPA Rajpura. This master plan is currently with the CTP and is likely to be notified soon.
	Action likely against illegal colonies Though the state government has formed Patiala Development Authority (PDA) to keep an eye and prevent the construction of illegal colonies, so far nothing concrete seems to have been done to take action against such colonies. Reliable sources in the state government have confirmed that suitable action would be taken against the illegal colonies in coming days. Notably, following the directions of the Punjab Deputy Chief Minister Sukhbir Singh Badal, recently a survey of the state was also conducted to ascertain and identify the colonies that have come up illegally in the state. The Patiala Deputy Commissioner and the Chief Administrator of the Patiala Development Authority (PDA) G.K.Singh said there were 600 illegal colonies in the district and many of these were in Rajpura and its surrounding areas. Hinting that the authorities were very serious about dealing strongly with such colonisers, he said, “We have already given a notice in the print media about the illegal colonies so that the general masses don’t fall in the trap of shady developers. I have also instructed the sub-registrars not to attest any sale deeds of the land/plots/any other category if the colony has not got the due approval.” He also pointed out that since the Punjab and Haryana High Court was already aware of the matter and had directed the state government to come up with a law empowering the state to demolish unauthorised colonies. “As soon as any policy in this regard is framed, we will be the first one in the Punjab to undertake the demolition drive,” added Singh.
	decor trends How green is my wall Want a dash of nature in room? Check out the latest trend of having living or bio walls within homes and add life to your decor Disha Singh ... Open green spaces have been a part of the Indian lifestyle since ages, be it the Char-bagh system, which was introduced by the Mughals or the British bungalows surrounded by huge gardens. Although private green spaces could only be owned by the wealthy, public green spaces were also prevalent and were used for leisure, as meeting places and even as venues for open markets. Today, the increase in population in the urban areas has resulted in reduced green cover within city limits. With the advent of high-rise dwellings and requirement for optimum utilisation of the built-up area, residential green areas have been compromised with. From a psychological point of view gardens and parks are soothing and relaxing spaces which allow a person to unwind. Thus the importance of such spaces increases manifold given the high-stress lives that most people lead nowadays. So no wonder that green spaces are fast becoming as part of the home décor or interiors. With the materials and techniques available today, it is possible to have green areas within a house or an apartment even if there is very little space. Besides having pots or planters scattered within a house or a roof-top garden, there is another innovation which has made it possible to bring natural beauty within a home. This is the concept of "Green walls or Living walls". This is essentially a vertical planting system in which walls can have anything from grass to flowers growing on them. These bio walls can be developed inside a building or even outside it. There are several options for the system of installing green walls. The selection of the system to be installed depends upon aspects like: Nature of the wall on which the system is to be installed i.e. whether it is a load bearing, non- load bearing or a fabricated wall. Area of green wall to be installed. Choice of vegetation to be planted. The most common installation systems consist of directly fixing pre-fabricated modular panels on load-bearing walls. This system is slightly cheaper than the others as no additional structure or support system is required. Another system entails fixing of a combination of foam planting material and a wire mesh on a wall. The wire mesh provides additional support to the installation and this system is used in cases where the installation is vertically extensive. In the case of fabricated walls horizontal support members are required to be installed on which the prefabricated panels may be fixed. Once installed, the various components of the system as completely hidden by the planted vegetation. One of the major misconceptions about green walls is that they require soil in order to be propagated. This is not the case as suitable mineral solutions are used to provide the plants with the necessary nutrients. The foam base keeps the vegetation constantly supplied with the solution. The best part about having a green wall is that it does not occupy any additional floor area but instead provides a vertical garden within a room. There is a wide choice in the kind of vegetation that can be grown with such a system. It includes grass, creepers, flowers, lichens, moss, crotons, ferns etc. Landscape design may be done for these living walls which can convert them into an interesting and attractive feature in the interior of the house. Some specialised green wall systems have also been devised to cultivate kitchen gardens. There are other benefits as well of a green wall such as the fact that they provide insulation and contribute in regulating the air temperature within a room. They also help in improving the quality of air within a building by purifying it and controlling the humidity levels. Essentially, living walls help to bring the beauty of green spaces within the house and are a wonderful solution in a small space, especially for those who yearn for a garden of their own within a flat or an apartment. Making a bio-wall The various components required for the installation of a green wall are: Waterproofing membrane. Support structure (if required). Pre-fabricated panels or planting medium. Drip irrigation or mist irrigation system. Suitably designed drainage to collect any run off.
	Green house The splendour of miniatures Maj Gen C.S. Bewli ... An artistic landscape can be created by using the living art-form of 'miniature' trees. Due to their prominence and grandeur, these trees assume a very significant role at the time of planning the landscape of any area, bg or small. For the miniatures to exude beauty, it is better to establish them on a slope so that they receive good amount of sunlight. The whole look of a big garden gets enhanced when 5-7 such trees are planted in close proximity, making them the centre of attraction. However, in a small garden even one miniature tree grown in a corner can add punch to the whole setting. A miniature tree is grown in ground instead of in a pot. For easy maintenance and beautification, it is normally allowed to grow up to 6-7 ft in height. With the aid of horticultural practices it is artistically trained, styled and fashioned in such a way so as to give it a "bonsai-like" character. However, technically one can't call these bonsais, as the word bonsai in Japanese language means 'a tree in a container'. But the techniques used in training, styling and fashioning these miniature trees are basically just the scaled up versions of bonsai culture. The concept of miniature trees is very new, but styling technique is as old as bonsai. Such trees can be suitably shaped in the form of informal upright style, slanting style or cascaded style of bonsai. It is not necessary to follow strictly the bonsai guidelines in creating a miniature. The artist should reflect his imagination and show his skill in altering the natural form of the plant in expressing and creating the overall design of the miniature which should look different. This can be achieved by training and suitably placing branches at different heights and in different directions. The technique of wiring the trunk and branches and clipping of branches and some foliage helps in giving the desired shape. The miniature will take about 4-5 years to reach the desired height and shape, giving the artist a great satisfaction in its creation. Not only this, being a live creation, the overall design of the miniature improves with each passing year to keep the creator motivated. Way to go Select the desired plant and also the location in your garden where the miniature, when ready will exhibit its full grandeur. Rainy season has set in and it is the right period for such an activity. As the tree is grown in ground, its growth is stimulated, resulting in more pruning to maintain and keep it in shape. Create your own miniature Select a plant having a healthy trunk-line and remove all basal shoots as these deprive the plant of nutrients. It is transplanted in the ground using nutritious compost where enough sunlight is available for the plant to remain healthy. Decide on the overall shape of the miniature which the plant would ultimately acquire. Remove shoots growing at odd angles and other shoots which come in the way of the design. Start styling the miniature when it gets about three ft heigh, the lowest branch should normally be placed at a height of about two feet from ground, keeping in mind the height of miniature to be created will be about 6-7 feet. All other branches below it should be removed. Wire the trunk-line and branches, giving it the initial desired shape As the plant grows in height, rest of the branches above the lowest branch should also be aesthetically placed and trained accordingly by means of wires. When the plant reaches about 6-7 feet in height, it's time to give it a final shape using wires. Pinching and pruning of the branches should also be carried out to aid in the final shape. Pruning of fresh sprouts is usually done from spring to the end of rainy season. Pruning can be as much or as little as you like, to keep the tree upto the desired height. Deciduous succulents such as Sesamothamnus lugardi, Bursera fagaroides, guggul species, Adansonia grandidieri (Baobab) and ever green trees such as Ficus benjamina, Ficus nuda, Crassula ovata and Crassula arborescens in the shape of miniature trees look stunning; however other species should also be tried. Tending tips Grow the plants under good sunlight. Periodic pinching and pruning should be carried out during growing period to keep the miniature in shape. Dead and brown foliage should be removed periodically. Regular watering is required during initial stages, but when established, watering is considerably reduced.
	buyers' pitch: high density areas A preferred investment option Sanyam Dudeja Different people buy homes for different reasons. While most of them buy for the sole purpose of living in their dream abode, others use these as an investment tool and some even use the margins inherent in real estate transactions as their daily income. There are many factors one needs to consider when buying a house, whether to live in or as an investment opportunity. Tricity and its vicinity has numerous upcoming residential projects which have, in fact, gone beyond a being mere well-planned housing complex to meet day to day needs of the people dwelling to becoming a fully-functional mini city. Over 20 projects have been launched in the area over the past few months and all this has changed the façade of areas like Zirakpur, Mullanpur, Mohali and Kharar adding to their development and growth. While builders are competing with each other to provide special and competitive attractions and amenities, including condominiums, builder floors and flats with modern facilities, buyer preferences still exist. The most important consideration for a home buyer is "location". Location in actual sense just boils down to one thing and that is 'neighbourhood'. One needs to apply a neighbourhood litmus test while deciding about buying a home. Things to be considered include habitation or in other words the local occupancy of that particular area. Other things to be considered are schools, nearby growth, development, and convenience. Highly populated areas are ideal for choosing any housing project to live in; it gives the buyer or the end user, a sense of security as families already living in such places testify for the builder or the project. In coming times, high densities and multi-family dwellings will be preferred despite the trendy push for livability, new urbanism, designs, hi-tech features etc. Integrated townships offer good choices to people looking for high-density dwellings. There are many advantages associated with better occupied areas as compared to the stand alone houses in sectors. Townships promote community living and offer many facilities such as swimming pools, gymnasium and tennis courts. Besides, one doesn't need to worry about its repair and maintenance. Some reasons why 'Hi-density' areas are becoming a popular housing trend among all income groups: n Figures show that higher-density development can increase property values. Changes in property values can have very real consequences for the existing property owners. Likewise, homeowners would benefit from knowing that developers make a substantial financial commitment when they invest in new higher-density projects. This investment is an incentive to make the project successful, which can give the community leverage in working with the developer. n Higher density developments generate less traffic in the surrounding areas and make walking and public transit more feasible and create opportunities of shared parking. The reason being that higher-density developments make for more walkable neighbourhoods and bring together the concentration of population required to support public transportation. n The crime rate at high-density developments is lower as compared to that in the lower density areas. Higher-density developments can actually help reduce crime by increasing pedestrian activity and fostering a 24-hour community that puts more "eyes on the street" at all times. Many residents say they chose higher-density housing specifically because they felt more secure there. n High density developments are cleaner and more environment friendly. These offer the best solution to managing growth and protecting clean air and clean water. Placing new development into already urbanised areas puts extra burden on the existing infrastructure and eco system. Higher-density communities are vital to preserving a healthy environment and fostering healthy lifestyles. n Attractive, well-designed, and well-maintained higher-density development attracts good residents and tenants and fits into existing communities. The writer is COO, TDI Developers Ltd.
	tax tips S. C. Vasudeva ... Is an SCF commercial or residential property? Q.My father purchased a shop-cum-flat in an auction from estate office Chandigarh in 1959 for Rs 50,000. After his death in 1992, 50 per cent share in this SCF was transferred in my name and rest 50 per cent in my brother's name according to his Will. Now in 2012 we both have sold our shares in the said SCF for Rs 2 crore each and have purchased another SCF investing Rs 1 crore and 60 lakh, respectively, within two months of first transaction. We have paid Rs 19.20 lakh as stamp duty. My queries are: Whether we are liable to pay long-term capital gain tax in the light of above transactions? If yes, then what would be our LTCG tax? For the purpose of calculating LTCG tax whole of SCF will be treated as commercial property or shop portion i.e. ground floor and flat portion i.e. first and second floor shall be treated as commercial and residential property, respectively. What are the other legal ways of saving LTCG tax in the light of above transactions? — Sanjay Singh A.Your queries are replied hereunder: It is not possible to compute the amount of long-term capital gain since the fair market value as on 1.4.1981 of shop-cum-flat has not been indicated in the query. The determination of fair market value as on 1.4.1981 would be beneficial to you as the property was purchased in 1959 by your father. Under the provision of Income-Tax Act 1961 (The Act), an option is available to an assessee to substitute the fair market value as on 1.4.1981 for computing the amount of long-term capital gain in case the property was acquired before such date. You have not indicated in the query whether the flat is a residential flat or is a commercial flat. In case the flat is commercial flat, you would be liable to pay tax on the long-term capital gain arising on the sale of your share of the property. In case the flat is a residential flat, it should be possible to bi-furcate the sale proceeds of the property so as to arrive at the fair market value of the shop and residential flat. Presuming that the flat is a commercial flat, in such a case shop-cum-flat would be in the nature of a capital asset other than a residential house. You can save the tax payable on long-term capital gain arising on the sale of shop-cum-flat provided the net consideration of Rs 2 crore is utilised for the purchase of a residential house within one year before or two years after the date of sale of shop-cum-flat or for construction of a residential house within three years after the sale of shop-cum-flat. You also have an option to invest the amount of long-term capital gain in tax-saving bonds within six months of the date of sale of shop-cum-flat. The bonds can be purchased for a maximum amount of Rs 50 lakh in a financial year. These bonds have a lock-in period of three years and carry interest @ 6 per cent per annum.
	MaintenanceS charges not part of cost Q.My colleague had purchased a showroom in a shopping mall in May, 2005. Almost 60 per cent of the cost was paid according to the progress of construction without any interest. The balance 40 per cent was payable either within 60 days from the issue of regular allotment letter in September, 2008 or in 120 equated monthly installments. The monthly installment includes Rs 13,000 of principal amount and Rs 13,000 interest component. The possession of showroom was offered in January, 2009, allowing six months' time for fitting etc. Besides the monthly interest of Rs 13,000, my colleague is also required to pay Rs 11,000 as common area maintenance charges and Rs 2000 as non-operational charges of the showroom. The possession was not taken by my colleague and nor does he intend to take it in the near future as the shopping mall is non-starter though the same is fully ready. If the possession is taken, the viability of the activity is doubtful. Even a couple of people, who have taken the possession and started the activity, are not doing well as I understand. My colleague intends to sell this showroom as and when any buyer is available, without taking possession. I seek your considered opinion to help my colleague with the information on the following two points: n Whether monthly interest of Rs 13,000, common area maintenance charges of Rs 11,000 and non-operational charges of Rs 2000 also will form part of purchase/capital cost besides the principal component paid as my colleague has till now spend a substantial amount in paying these charges. n Whether the capital gain/loss will be of short-term or long-term in nature. In case of long-term, will the indexed cost be worked out as per income tax guide lines? — Ved Parkash Jindal A.Your queries are replied hereunder: The amount of interest paid for availing the benefit of installments would form part of the cost of showroom. The other amounts paid would not form part of the cost of the showroom. Your colleague has acquired a right in the property in 2005 and, therefore, any capital gain or loss shall be treated as long-term capital gain or loss in case such right is held for a period of more than three years and is sold before taking the possession.
	Will construction in existing house help in saving tax? Q.My wife purchased a residential plot on May 7, 1990 for Rs 10,000 and sold the same on December 8, 2011 for Rs 5,25,000. Kindly let me know The LTCG and I-tax to be paid The ways to save tax Can she save tax by constructing a portion or renovating the house owned by me? — Tarlok Singh Anand A.Your queries are replied hereunder: The amount of long-term capital gain on the basis of the facts given in the query would work out at Rs 4,81,868 on which tax @ 20% plus education cess of 3% thereon would be payable by you. The amount of tax payable would be Rs 99,265. You could have saved tax by investing the amount of capital gain towards the acquisition of tax-saving bonds. These are to be brought within six months of the date of sale. Acquisition of tax-saving bond is not possible now your case as the time limit has lapsed. The other possible way is to purchase or construct a residential house by utilising the amount of net consideration i.e. Rs 5,25,000 within the specified period. The purchase of the house can be effected within one year before or two years after the date of sale of the house. The construction of the house has to be completed within three years after the sale of the house. She would not be able to save tax by constructing a portion of the house owned by you. The benefit under Section 54F of the Act can be availed only if the residential house is purchased or constructed by the person who has sold the capital asset other than the residential house.
	Can co-sharer sell his share in undivided property? Q.As already clarified a co-sharer is barred from selling his portion of property under the Transfer of Property Act, 1982, till he has a valid mutation in his name from the competent authority. I am a co-sharer in some agricultural ancestral land in Mandi district in Himachal Pradesh. This land is undivided till now (only local distribution called Gharelu Bant has been done). However, a co-sharer in this property had sold his share to another co-sharer on May 30, 1996 under a registered sale deed. My queries are: Whether the above sale is illegal under law? Whether this can be challenged in court now and if yes then under which Act and rules? — H.S. Thakur A. Mutation does not confer any title. It is just the maintenance of revenue record. From your query it is not clear that whether the other co-sharer has sold to the extent his share only or he has sold more than his share. Whether the co-sharer has specified the boundary (demarcation of land) in the sale deed registered on May 30, 1996. If both these are true in your case, then the registry can be challenged in court. The Transfer of Property Act, 1882 deals with rights and liabilities of a transferee from a co-owner, as to the enjoyment of the property transferred (should be immovable). The principle that a person who takes transfer from another steps into the shoes of the transferor and has all the rights and becomes subject to all the liabilities of the transferor. In short, we can say that he becomes as much a co-owner as his transferor was before the transfer was effected. You can file a suit for partition of land before the competent revenue authority.
	Are charges justified? Q.I have purchased a 200 sq yd plot at Omaxe City, Bathinda. I made 95 per cent payment and got the allotment letter. Last month I received a letter from the company demanding the rest 5 per cent payment. In addition they are demanding external development charges (EDC)of about Rs 50,000. I want to know whether these EDC charges are to be paid by the customer or the company. What are the rules regarding this. — Karamvir Singh A.The coloniser is required to pay the cost of external development works if the same are required to be carried out by the government or local authority. The Director has the power to determine the proportion and the time within the payment of EDC is to be made. The expression 'external development works' includes sewerage, drainage, roads and electrical works which may have to be executed in the periphery of or outside the colony for the joint benefit of two or more colonies. This, however, does not mean that such works are confined to one or more colonisers. In its very concept, the external development is meant for the community at large and is not confined to a person who may develop a colony for the benefit of a group of individuals, i.e., plot holders. All those, including the colonsier, who will benefit by the external development works are required to pay for these. The promoter's Demand for EDC charges is valid as under the Punjab Apartment Ownership Act Section 24 (5), the promoter may collect amounts from the apartment owners before the formation of the association, towards the common expenses or towards the sinking fund for replacement of fixed assets or for payment of government or municipal taxes or stamp duty or registration fee for the conveyance deed of apartment and the promoter shall be liable to account for such amounts and shall, within three months of the formulation of the association, transfer the surplus amount in his hands to the association or to the apartment owners, as the case may be.
	pick of the week Window fashion Shani Corporation Limited (SCL) recently launched Cora uPVC Performance Windows in India. These sound proof and eco-friendly windows have been built by using eco-stabilisers and offer optimum insulation. These windows are versatile in design and function and can be uniquely configured into large combinations for maximising view and enhancing lifestyles. Each termite proof and easy to install window is custom-made to suit customers' requirements - in size, colour and design. The price range starts from Rs 300 per sq ft onwards. Sleek sinks Prayag Polymers has introduced the Classic Range of stainless steel sinks to add a chic look to your kitchen. The range comes in various different bowl shapes and sizes especially designed for Indian kitchens and comprises three variables, i.e, single bowl with mini bowl and drain board; double bowl with mini bowl; and single bowl with double drain board. Price Range: Rs 6800 onwards