Cautious buyers rock realty boat
Umesh Dewan

Jalandhar — the heart of Doaba region and a vibrant city of Punjab, used to be a preferred place for investment in the real estate sector. But, in the past couple of years, the realty sector in Jalandhar has been passing through a bad phase. Now, even the sale purchase activity of residential and commercial property is on the decline. According to a majority of the real estate agents the drought in the realty sector has been there for the past over two years now and a large number of properties were not finding any buyers. Maintaining that the demand-supply scales are highly lopsided in Jalandhar at present Vikas Bansal of Bansal Contractors said that while there are very few buyers for residential properties in Jalandhar, a large number of townships have already come up in the city. "Presently the availability of the space in Jalandhar is much high than the demand. Now, finding buyer is certainly an uphill task", he added.

Bansal also pointed out that another factor that had contributes massively to the current slowdown is the unfriendly policies of the state government. He said the ban on Power of Attorney sales has badly affected the sale of the commercial properties. "The investor wants to make profit by purchasing commercial land and selling it off at higher price, but because of the apprehensions that Power of Attorney can be banned anytime, the investors are preferring to stay away from purchasing land in Jalandhar", he added.

Balbir Singh of Paras Property said the real estate sector in the Jalandhar has been passing through a rough phase from quite sometime and as a result big investors have not shown much interest parking their funds in this area. "The arbitrary ban on the Power of Attorney has also taken a toll on the realty sector in Jalandhar", he pointed out.

Amardeep Samra, CEO of the Midland Group, said there had not been much demand of residential and commercial property in Jalandhar for the past three years. "We mainly deal in setting up commercial projects. What we have noticed is that because of the global recession, there has been a decline in the demand for commercial property on rental basis also", he added. The real estate agents further stated that the trend of corporate groups taking commercial property on rent itself shows that no one is interested in taking any risk in the form of investment by purchasing property at the moment. "If even big corporates are prefering taking property on rent, the actual scenario in Jalandhar can be well imagined', said Saurabh, a real estate consultant.

Singh added that as the prices of the residential property within the city are very high it is very difficult for a mid-segment buyer to buy property here and with "affordable" colonies on the outskirts not having proper approvals end users are apprehensive about spending their money there. "Ever since the government has announced that action would be taken against illegal colonies, the sale-purchase activity has come to a standstill", he added.

While the state government is yet to come up with a feasible formula to deal with the unapproved colony problem all over the state, most of the real estate agents are of the opinion that whereever basic civic amenities have been provided in the private colonies, the best solution is to regularise these by taking development charges. This would generate revenue for the government, and people will get residential accommodation at an affordable rate and there will be some movement in the realty market too, said many property dealers. Anil Chopra from PPR Infrastructure Limited, said that big contractors and builders, who are into big housing and commercial projects are not affected by the slowdown. "Property dealers and real estate agents, who operate on commission basis, are passing through a difficult phase on account of the less sale-purchase activity of the residential land particularly on the outskirts of the city", he added.

At present the land rates of the residential properties in the main posh areas in Jalandhar city are quite high. While the price of land in Model Town is between Rs 38,000 and Rs 42,000 per sq yd, the land prices in Defence Colony, New Janta Nagar, Lajpat Nagar, Udham Singh Nagar are about Rs 33000-Rs 35000 per sq yd. As far as commercial properties are concerned, there is been huge variation depending on the site location. 

PROJECT LINE UP

Lotus Bawa-MRMGF

Touted as one of the biggest shopping complex-cum-multiplex being constructed jointly by the local Lotus Bawa group and MRMGF group along Nakodar Road, this project has been in a limbo for more than three years now. It was launched in 2008 and was to have a covered floor area of 5.5 lakh sq ft with three-screen multiplex to be set up by the Adlabs and a parking provision of nearly 1,000 cars. The Lotus Bawa group has 79 per cent stake in this project. Atamjit Bawa, owner of the Lotus Bawa group, said he had certain issues which he wanted to resolve with the MRMGF officials before proceeding ahead.

Hotel MBD Krishna

Having started in 2007, the city-based MBD group has abandoned its hotel project MBD Krishna for the past two years. The project which is coming up on the GT Road has its outer façade ready. The company representatives said the project has got embroiled in a civil case with regards to its partnership issues.

Eldeco Greens

This is Jalandhar’s first integrated township project spread over 80 acres being developed by the Eldeco group. The project is located on Nakodar road, Jalandhar. The township offers several residential options depending on individual family requirement and budget: Expandable villas — Available options are from 2-5 bedrooms on plot ranging from 167 to 259 sq. yd (140 to 216 sq. mt.). Price is Rs 42.79 lakh onwards

Plots in different sizes in the price band of Rs 28.55 lakh onwards (on down payment plan)

The Taj Group

Other mega projects in the pipeline in the city include a 180-room hotel being constructed on Jalandhar-Phagwara road by the Jalandhar-based Lally Group which is to be managed by the renowned Taj group. "We have just begun with the construction which will go on for two years. We will provide the Taj group with a shell. It will be upto them on how they use or convert various rooms", said Sarabdeep Lally, owner of the group.

Miniplex, Revolving hotel

The PPR group is coming up with two new innovative projects, including a miniplex and a revolving hotel. The construction of a shopping centre and a miniplex on 2.5 lakh sq ft near PPR Mall at Mithapur Chowk has been on at a steady pace for about two years and is likely to be over. "The two 100-seat cine halls that we are planning to construct will have luxurious dining facilities for everyone", said Anil Chopra, owner of the group. The group is also coming up with another project 'Parikrama' near Jyoti Chowk which will be the first revolving restaurant in the city. Chopra said, "We have Hotel Days Inn, an economy chain of Ramada Group, coming in at Parikrama with 50 rooms, a gym, a bar and a coffee shop."

Curo High Street

Coming up on 66-ft road is this project will have a mall, a multiplex, a hypermarket, anchor stores, retail stores, restaurants, cafes and designated entertainment areas. The total area of the project is spread over five acres. The main attractions of Curo High Street include surface car parking. The construction which commenced on July 10, 2011 is likely to be over by the end of this year, said Kamal Soni, AGM, Sales and Marketing, Curo Group.

— Inputs by Deepkamal Kaur

REALTY GUIDE
B K Sanghi ...

How can I get the right to my grandfather’s properties?

Q.My father and his two brothers inherited ancestral property as well as property purchased by my grandfather, who had expired in 1940. My father had two brothers and three sisters. My father expired sometime back and I am his sole heir. One of my father’s brothers has also expired and is survived by his wife, four daughters and two sons. My second uncle has, however, not been in touch with any member of the family for over 12 years and no one knows about his whereabouts. All of my father’s sisters have also expired. However, the title of the properties of my grandfather still stands in my grandfather’s name. How can we (me and my cousins) get the right of title of the properties? — K.J. Goswami

A.Since your father expired intestate, there are many people who are legal heirs having a share in the property. There are two ways to solve your problem:

Right to enforce partition

In all cases of joint ownership, each party has a right to demand and enforce a partition; in other words a right to be placed in a position to enjoy his own right separately without interruption and interference from others. A transferee of a share in the property or a transferee of any interest can ask for partition.

You can file a civil suit to enforce the partition of the property. The court will send each co sharer a notice and ask him/her to present his view on the matter and decide accordingly.

File a suit for partition of property

The Transfer of Property Act, 1882 deals with rights and liabilities of a transferee from a co-owner, as to the right 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. According to Section 44 of The Transfer of Property Act, 1882, you have full right to purchase share from the other co-sharer.

Decor trends
Rubina Chadha ...

The winsome first look

The entrance is the best introduction about the owners of a home and making it an inviting and attractive area is a challenging task.

In fact, entrance to your home starts the moment you open the front door from outside and the foyer is the first thing that a visitor is going to see. This is the space where one spends barely a couple of minutes at any given time but this small space can help show off some of the most creative decor ideas of the homeowner. Thus, you need to spend a little extra time decorating this space in your home, and believe me you’ll love and enjoy every minute of it.

This area is the most difficult to decorate as there is no readymade solution available in the market. Here are some tips that can come handy while decorating the foyer:

First of all get rid of things that may create clutter and also the items that are old and shabby.

If you are thinking about having something exquisite, then wallpaper or luxurious silk fabric or some concepts of wall designs would be the perfect things to use. As generally this space is very small, you can go in for more luxurious stuff without burning a hole in your pocket.

Foyer or entrance should have a mirror for last-minute primping. And the bigger the better! A large foyer can be overwhelming, and mirrors direct the eye in the way you wish it to go. You can install a bevel-edged mirror, decorated mirror with frame made of mother of pearl or laser cut steel or wooden frame with silver or gold leafing or any other mirror which you find interesting. Also, consider illuminating the mirror with spotlights or ceiling track lights and remember to install a dimmer switch for these lights for a magical effect for evening parties and dinners.

You may not have much room for furniture in your entry but it is still possible to have some beautiful small pieces of furniture like a small couch or reclining chairs or a console/chest with decoratives on top.

If your foyer area is really just a narrow hallway, try mounting a narrow table top directly on the wall with mirror hung on the wall. This way you won’t lose precious floor space, but will gain a place for keeping your decoratives.

Just like any other part of the house, your hallway and corridors will benefit from a well-planned lighting scheme as lighting is important in creating ambience, adding warmth and highlighting wall décor or architectural details in your foyer. For the main artificial lighting source, consider a sparkling chandelier hanging from the centre of the hallway as chandeliers twinkling with a soft and welcoming glow add instant drama to your entrance. If your ceilings are high, ensure that the chandelier is positioned in a way that people get the full visual impact. If the space is not enough for a chandelier, then you can have two lamps or wall décor with a great pair of sconces.

And remember to use energy-saving lamps if the lights are likely to remain on for extended periods of time. It’s also a good idea to position a light switch near the front door so you won’t have to enter a dark house.

Pictures, silk plants, an elegant entry table and a burst of colour give a warm homely touch to the area which is a permanent welcome signal for your guests.

Accessorise the foyer area with personal objects — a vase, trinkets, a dish to drop your items, or decorative pillows that pack a punch if you have a bench. Toss an area rug or runner to soften floors and define your entry space.

Discreet use of potpourri, fresh-cut flowers and candles can also go a long way in adding touches that are both inexpensive and elegant. Large floral arrangements that reflect the theme of your home are in good taste and if you can afford having a bouquet of fresh flowers in a large vase in one corner of the entrance, it would add drama and glamour to the entrance area. The same is the case if you keep a burning candle with lemon grass, vanilla or any other fragrance emnating from the candle holder to provide a refreshing feel.

— The writer is a Panchkula-based interior designer and founder of Studio Home Works. (www.homeworksindia.com)

Choose the right finish

While finalising the finish of the wooden items in the house, a house owner is often caught between two choices — laminates and decorative plywood. Many factors favouring each material arise and making the right choice becomes difficult. Let us analyse various aspects related to the use of laminates and decorative plywood to arrive at a correct decision:

The use: The laminates and decorative plywood with teak finish are used as decorative finishing materials for the wooden items fabricated out of wood and ply boards. The ply boards and block boards carry a rough surface which needs to be provided with a decorative finish of suitable colour, gloss and design to convert it into a highly attractive provision or piece of art.

Choice of finish: There is ample choice of finish in laminates. Laminates are produced in plain, wooden and metallic shades. Wooden shades are made to look like the grains of most woods. Laminates have all the popular wood shades of walnut, oak, pine, ash wood and others. Mostly, plain and wooden finishes are liked by the people except for kids’ room where bright and metallic colours often are the choice.

Decorative plywood: In plywood, though there is limited choice of finish available, yet most people choose teak finish plywood for the door panels and wood-framed glass partitions because of the elegance it lends to the wooden items. In this plywood, ornamental decorative veneer slices are used as the face, to make it look like teakwood. This plywood is also subjected to all type of tests for moisture content, water resistance, water absorption etc before releasing it in the market.

Cost factor: The laminates available in the market are quite cheap in comparison to decorative plywood. 0.7 mm thick laminates used inside the cabinets are very cheap and cost about Rs 15 per sq ft only. The 1.0 mm thick laminates used on the outer surfaces of boards cost about Rs 30 to Rs 40 per sq. ft. Textured and metallic finish laminates cost a little extra. On the other hand, decorative plywood of good make and with one side finish costs about Rs 70 per sq ft.

Labor cost: As per prevailing practice, a carpenter charges more amount for using decorative plywood on the wooden surfaces than using the laminates. The rates quoted by a carpenter gang are on per sq ft basis irrespective of the depth of cupboards or the paneling work. For the wood work finished with decorative plywood, a carpenter may quote a rate of Rs 180 per sq ft while his rate for finishing the same wood work with laminates shall be Rs 150 per sq ft or so. Thus, on account of labour too, decorative plywood finish costs more to the house owner. In addition to the carpenter’s labour cost, decorative plywood requires labour cost for polishing work also.

Overall cost comparison: Let us now have a look at the various cost components for each type of finish. Laminate finish cost comprises the cost of laminates, cost of adhesives and labour cost of carpenter.

Decorative plywood finish cost consists of cost of plywood, cost of adhesives, labor cost of carpenter, cost of wood polish and labour cost of polishing work. If we work it out on per sq ft basis without considering the common item of plyboards, the laminate finish work shall cost about Rs 200 per sq ft while the decorative plywood finish work shall cost about Rs 330 per sq ft.

Advantages of laminates: Laminate finish for wooden items has many advantages. There is ample, rather mind boggling, choice available in case of laminates. One may choose high gloss, matt finish, texture finish, metallic finish, suede finish or many other finishes of laminates. If you have got the door and window frames and shutters polished, laminates matching the exact shade of polish on doors and windows will be available, making the visitors believe that even other wooden accessories have been got polished by you.

Laminates are quite durable and any marks or stains on them can be easily wiped off. Besides this, laminate work is quite cheap in comparison to the decorative plywood finish, as proved above. Thirdly, the laminate work can be completed in a fast manner. Once the laminates are pasted, the work is finished.

Disadvantages of laminate finish: Though the wooden items finished with laminates look highly attractive and decorative yet the general liking of people is for polished work despite its high cost. Somehow, the woodwork finished with decorative plywood and then polished is assigned more regard, esteem and ‘class’ than the one finished with laminates. This mindset is so prevalent that some house builders are sharp enough to choose such laminates that resemble the polish work and make it difficult to judge whether the woodwork is laminated or polished. Otherwise, laminated wood work has the only disadvantage of creating very sharp edges and corners in woodwork. One should be alert enough to get these edges and corners rounded or blunted from the carpenter.

Crack development in laminates has been noted sometimes after these are pasted on the wooden surfaces. Companies don’t take responsibility for these cracks, find excuses and attribute it to poor quality of wood and glue. Therefore, while buying laminates, one should make it clear to the supplier that in case such an instance happens then he shall have to replace the lot without additional cost. Such instances don’t occur when decorative plywood is used.

Fleecing by companies: Certain laminate producing companies producing textured laminates fleece the customers under the garb of providing imported laminates by charging very high rates.

Purchase of laminates from such companies should be avoided. One should note that 1.0 mm thick laminate sheets of 8 feet X 4 feet size are available in the market for Rs 1000 to Rs 1400 per sheet. There are hundreds of laminate-manufacturing companies and there is tough competition. Under these circumstances, customer is the king and he must browse enough number of laminate catalogues before selecting the final shades and colours for his wooden items.

Edge beading: The edges of wooden items are finished with half- round or triangular edge beading when decorative plywood is used. This beading lends an elegant look to the wooden items. When laminates are used, normally, the edges are also finished with the same laminate. 

Polish work

Laminates have the final finish and don’t require any polishing. Decorative plywood, however, requires polishing. Polishing of woodwork is a costly affair as the melamine and PU polish are very costly. PU polish comprises three components — the polish, the hardener and the PU thinner. Its application is to be preceded with a three-component sealer, comprising sealer, hardener and thinner. Thus the cost of polish itself is very high apart from the cost of its application. In case of use of laminates, all this cost gets avoided.

Items to be finished

There are a number of wooden items on which these finishing materials are provided. These include panels of door shutters, cupboards, kitchen cabinets, vanity boxes in the toilets, wall panels for LCDs, crockery cabinets, pooja cabinet, study tables, book racks and partitions provided in the house. Sheets of laminates and plywood of choice, therefore, continue to arrive during the construction of house and ultimately, their number runs into hundreds.

DDA all for studio flats

The Delhi Development Authority (DDA) has proposed a new provision in the Master Plan 2021 for introduction of studio apartments and service apartments.

According to the proposal, studio apartments will be allowed to come up in residential zones, while service apartments will be restricted to commercial centres.

There will be a new provision for studio apartments incorporated in the chapter of shelter (group housing), which will allow for a premises serving as a residential accommodation for individual/family in the form of multi-purpose rooms.

“The maximum size of the apartment should be 60 sqm of built-up area and plots should face road with a minimum width of 12m. A basement being used for parking, utilities and services will not be included in the FAR,” added a senior DDA official.

It has also been proposed that a provision for long-term (service apartments) and short-term accommodation be incorporated in the Master Plan under the chapter on trade and commerce.

Real estate experts say the demand for service/studio apartments is increasing by the day especially with an influx of working professionals, who stay in the city for several months and need affordable houses. Hotels are too costly for a long stay and people prefer service apartments.

Tax tips
S. C. Vasudeva email your queries to realestate@tribunemail.com ...

Is builder's demand for service tax legal? 

Q.I purchased one flat at Zirakpur in January, 2013. The possession will be given by the builder in November, 2014. I have already made 95 per cent payment of the total cost. I have been told that the remaining five per cent and service tax (whatever applicable) will have to be paid to the builder at the time of posssession. But now in May, 2013, I have been asked to pay service tax to the builder. According to my information service tax is only paid at the time of the Registration of the property. Please guide me whether I have to pay the service tax now only to the builder and what percentage of service tax is applicable. — Manmohan Singh

A.Service tax is payable at the time of payment of any amount to the builder. Before the enactment of the Finance Act 2010, construction services were not taxable. The above Finance Act extended the applicability of service tax to construction services. The CBEC vide circular No. F. No. 334/03/2010-TRV (dated 1.7.2010) has clarified that "Before the issuance of completion certificate if an agreement is entered into or any payment is made for sale of complex or apartment in residential complex, service tax will be leviable on such transaction since the builder provides the construction service".

After July 1, 2012 construction service is a declared service and payment of service is not connected with completion or registration of the property.

Do self-acquired properties come under HUF assets?

Q.Our parents expired, intestate, before 1942 leaving some self-acquired and some ancestral agricultural land to us in a village in Himachal. Being the eldest son, I became Karta of our HUF. After 1960 I acquired a number of other residential properties in Chandigarh and Delhi purely with my own funds and loans without any inputs from the HUF or any other family member. Now, at the time of partition of the HUF property, would my brother and sisters have any claim on these self-acquired properties in Chandigarh and Delhi? These properties are registered/mutated in my sole name and not as a Karta of any HUF. In case they raise a claim on these self-acquired properties also, then how best can I fend them off so that there is no problem at a later stage. — R. Chauhan

Can I invest sale proceeds in bonds after 6 months?

Q.I sold a plot last year and planned to invest a major portion of the profit in bonds (REC or NHAI). But due to my husband's illness I could not buy these within the period of six months. The period of six months expired on March 5, 2013. Can you please suggest an alternative following which I can still invest the money in these bonds? — Manjula Joshi

A.Section 54EC of the Act dealing with the investment of capital gains in the bonds issued by the Rural Electrification Corporation Limited or National Highway Authority of India does not provide for any extension beyond the period of six months. The only option available for you would be to utilise the amount of net consideration (sale consideration less expenditure incurred wholly and exclusively for the purposes of such sale) towards the purchase/construction of a residential house. The specified period for purchase of a house is one year before or two years after the date of sale and for constructing a house three years after the date of sale. In case you choose to adopt this option, you would be required to deposit the amount of net consideration in a bank account under capital gains scheme. Such deposit should be made before the due date of filing tax return for the assessment year in which the sale takes place. The amount so deposited can then be utilised for the purchase or construction of a residential house.

Help in calculating the cost of my house

Q.Kindly help me in calculating the cost of my house in 2012-13 by applying cost inflation index. The particulars of house are as under:

The HUDA plot was purchased in resale in December 1983 for Rs 38,100

Ground floor of the house was constructed during 1985-86 at the cost of Rs 1, 20,000

Additional room was constructed on ground floor during 1994-95 at the cost of Rs 30,000

A part of second floor was constructed in 2005-06 at the cost of Rs 2,50.000

Enhanced cost of plot and interest on the same were paid a) Rs 2400 in December 1985, b) Rs 4421 in March 1995 and c) Rs 10,380 in August 2009.

Registration charges paid Rs 2000 in September 2009.

Please clarify what will be the base year for calculating indexed value of the house. Is it the year of acquiring the plot, or the year of construction of ground floor, or cost inflation index has to be applied separately on each item? — Vinod Kumar

A.The base year for calculation of indexed cost would be financial year 1983-84. It would be the year of acquisition of plot as far as plot is concerned. For superstructure the indexed value would be computed separately. The indexed cost of the house would be Rs 16,22,426 which has been computed on the basis of the figures given in the query. This is based on cost inflation index for the financial year 2012-13. The indexation will have to be done separately for each payment made in respect of purchase of plot and construction of the house.

Rules for charging service tax

Q.As a landlord I have to charge service tax on rent exceeding Rs 10 lakh. In my case the limit was crossed in March 2013. Do I have to charge service tax in this FY2013-14 from April or when the receipts cross Rs 10 lakh this financial year. — Devinder Singh Nagi

A.You will have to charge the amount of service tax from April, 2013 onwards in case you have already taken the benefit of the exemption limit of Rs 10,00,000 in 2012-13. This is in accordance with the circular issued by the service tax authorities in this regard.

A.The properties acquired by you in Chandigarh and Delhi with your own funds and without any contribution from the HUF or any other member will be treated as your self acquired properties which cannot be treated as a HUF properties. I presume that for tax purposes you have declared income from above properties in your total income and have been taxed accordingly. In view thereof your brothers and sisters cannot claim any share in your self acquired properties. The fact that these have been indicated in your tax return is a sufficient proof to refute any claim by your brothers and sisters that such properties belong to HUF. In case you have not filed tax returns showing income from your self acquired properties it would be advisable to file such return now so as to avoid any attempt on the part of your brothers and sisters for raising such a claim. 

PICK OF THE WEEK

Hardwood floors

Dalhoff Larsen & Horneman A/S (DLH) has launched an exquisite range of hardwood floors . With a combination of both chic classic and contemporary looks, these floors will match the aesthetics of any room along with great comfort and durability. The range comes in various species of wood like merbau, teak, pallisander, oak, american ash, ipe, etc. DLH hardwood flooring range is priced in India between Rs 290 per sq ft + tax and installation to Rs 850 per sq foot + tax and installation depending upon the category and species.

Roofing solutions

Check out Hi-Tech, Everest Rooflight, Coloured Metal Roofing and Complete range of Roofing accessories by Everest Industries Limited, a pioneer in pre-fab structures. These long lasting sheets are made from superior quality cement and imported fibre through a specially developed Fibre Orientation Process. These are non-corrosive, vermin-roof, easy to fix, economical, have low thermal conductivity - keeps insides cool, and better sound absorption - Less noise. ThEverest

The price range is ~150-190 per running meter.

Safe with an alarm

Godrej Security Solutions (GSS) unveiled its pioneering innovation — the Matrix safe with I-Warn technology recently. This is India’s first home safe that has an in-built vibration sensor that triggers off an alarm if it is being tampered with and sends instant SMS alerts or recorded voice messages to pre-registered phone numbers. The technology for the safe has been completely built in-house at GSS. 

Launch pad

Avalon Rosewood in Bhiwadi

Gurgaon based real estate developer Avalon has launched a residential project Avalon Rosewood in Bhiwadi. Located on 4-lane Mega Highway, (200ft wide Alwar bypass road) 40 minutes from IGI Airport, the estimated project cost is Rs 300 crore. It will have 1350 apartments spread over 17 acres.

Rosewood will have around 23 towers with ground plus 14-storey configuration , offering 2, 3 and 4 BHK units. It will have 900 flats in 2BHK segment, 360 in 3 BHK and there will be around 90 4 BHK flats. "The base price is around 2,725 per sq ft, and onwards. With all the mandatory approvals in hand the company plans to finish the construction in around three and a half year's time," said Ajay Singal, Director of the group. "With prices in NCR region going out of reach of middle class, salaried individuals looking for investment opportunities in the range of Rs 12-40 lakh are able to meet their budget in Bhiwadi-Dharuhera area", he added.

MGI Maple in Ghaziabad

Construction work was commenced after bhoomi poojan ceremony at MGI Maple project being developed by KDP Buildwell in Govindpuram, Ghaizbaad recently. The Rs 150-crore residential project will offer premium lifestyle living at affordable prices. reas at an affordable price. The project is spread over an area of approximately 2 acres and will have 350 units. The price of per unit will start from Rs 3250 per sq. ft (all inclusive).

Shri Rajneegandha Greens

Rajput Group has launched a luxury project – Shri Rajneegandha Greens — in Greater Noida. Located on Plot No- 10, Sector Pi-2, Greater Noida, the new project is spread over an area of more than 10 acres. It will have 2, 2+1, 3, 3+1 BHK luxury apartments in the range of Rs 30 lakh to Rs 70 lakh having units from 975 sq ft to 2,175 sq ft area. The project comes with an escalation-free price clause and convenient payment plans with an assurance of possession in 30 months. The project will have 100 per cent power back-up, elevation control, exterior maintenance, lawn maintenance, concierge services, central security and monitoring.

— Based on information provided by the developers

Realty bites

Measures for safety

Tata Housing has tied up with National Safety Council of India (NSC) to create awareness about the importance of following environment, health and safety norms in real estate industry.

According to the MoU, the two organisations will exchange technical expertise and engage in collaborative work to make environment, health and safety (EHS) a norm for the real estate industry, an official statement said.

Noting that construction is considered as one of the most risky industries when it comes to occupational safety, NSC Director General V.B Sant said a recent research suggests the average Fatal Accident Frequency Rate in Indian construction sector is 15.8 for 1,000 employees as against 0.23 in the USA.

Through the MoU, two organisations aim to ensure that compliance of health, safety, security and environment regulations is on a sustained basis and not a one-time practice, he said.

Awareness will be created through training modules and educational tools at construction sites all over the country. Tata Housing CEO and Managing Director Brotin Banerjee said the company is partnering with NSC to institutionalise occupational health standards, which will help to inculcate a safety culture within the real estate sector.

DLF sells Hyderabad plot for 650 cr

Realty major DLF has sold 32 acres in Hyderabad for about Rs 650 crore to Suvarnabhoomi Developers as part of its strategy to exit from the non-core assets and reduce debt.

The company has signed an agreement with local builder Suvarnabhoomi Developers to sell this plot, sources said.

DLF has been divesting its non-core assets such as hotel plots, IT parks and SEZs since 2010 and had raised about Rs 8,000 crore till December last year.

Recently, the company has been able to divest its three big-ticket assets — prime land parcel in Mumbai, hospitality chain Amanresorts and wind energy projects.

DLF sold 17 acres in Mumbai to Lodha Developers for Rs 2,727 crore in August last year. The realty major also sold Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore in December 2012. Another Rs 523 crore has been raised this year from sale of wind mills in Gujarat, Tamil Nadu and Rajasthan.

The country’s largest realty firm is targeting to bring down the net debt to Rs 10,000-11,000 crore from Rs 21,350 crore within the next three years with the help of proceeds from the issue of shares and sale of non-core assets.

The group has also launched an Institutional Placement Programme (IPP) to raise up to Rs 1,888 crore from issue of 8.1 crore equity shares. The share sale is for meeting market regulator SEBI’s guidelines on minimum 25 per cent public shareholding by June.

This is the third major fund raising exercise in the company. DLF had launched its Initial Public Offer (IPO) to raise over Rs 9,000 crore in 2007, while the promoters had sold 9.9 per cent stake in 2009 to raise Rs 3,860 crore.

As per the IPP prospectus filed with SEBI, the company has developed 105 realty projects comprising 262.4 million sq ft till last year. — Agencies