REAL ESTATE

 


changing realty: kasauli-solan area
Counting on camping
The overall slowdown in Himachal is making developers and builders explore other avenues for getting the maximum return from their land bank
Ambika Sharma

The real estate scenario in Himachal Pradesh is dismal as the prices have been stagnating in most of the areas for over 18 months now. Hardly any new residential projects have been launched here and the demand too is low due to the overall economic crunch. With permissions for acquiring a house in the hills being stuck up in lengthy procedures of Section 118 of the HP Land Reforms and Tenancy Act, the realtors who had invested in various commercial ventures, are now trying to diversify. So the state is witnessing a “realty diversification” trend.

Realtors are preferring to set up camping sites than going in for massive residential and commercial projects Photos by the writer
Realtors are preferring to set up camping sites than going in for massive residential and commercial projects

HC declines non-agriculturalist Himachalis’ plea 
Need permission to buy property in state

Non-agriculturists in Himachal Pradesh seeking to buy property other than what is offered by the state housing board will still have to seek permission from the government, the Himachal Pradesh High Court has ruled. The high court declined to interfere in Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act of 1972, which makes such permission mandatory.

real talk
Adopting green with gusto

Green buildings have got wide acceptance in India as more and more customers have realised the benefits of the environment friendly materials that are used to build these buildings, and more developers are coming up with such energy-efficient projects. Tata Housing, a pioneer in bringing this concept to the country was recently felicitated for 'Outstanding Contribution', at the GreenCO Summit 2013 organised by The Confederation of Indian Industry (CII - Western Chapter) at Suzlon One Earth in Pune.

Vacancy levels in malls decline 
The vacancy levels in malls have come down to 14.51 per cent in July-September quarter mainly due to decline in supply of new mall space, a recent report said. According to a survey by real estate consultancy firm Cushman & Wakefield, the vacancy levels declined by 0.6 per cent to 14.51 per cent compared to 17.51 per cent in Q2 2012.

Price jump along Dwarka Expressway
Housing prices have jumped nearly three-fold on Dwarka Expressway in Gurgaon during the past five years to ~7,000 per sq ft but the slow pace of constuction of highway and litigation issues have become a major hurdle for growth of this corridor, property consultant DTZ has said.

designer dens
Travellers’ nest
Bhawna Jaimini
A home says a lot about its owners and travel writer and photographer Ajay Jain’s house proves this beyond a doubt. The 1,600 sq ft home in the upmarket Greater Kailash area in South Delhi belonging to avid travellers Ajay Jain and Anubhuti Rana is an ever-changing landscape of cultures and a window to the world. Before becoming full-time travellers, Ajay was a financial writer and Anubhuti was a German language expert. As Ajay wanted more from life than just writing about money and technology and wanted to leave a legacy, so he switched over to travel writing and photography.

Green house
Let manure work its magic
Amarjeet Singh Batth

Just as humans need balanced diet for proper growth and development, so healthy soil is the necessary for healthy plants in your garden. According to a Japanese saying, whatever you get from soil must be returned. Continuous cultivation, growth of weeds, leaching and erosion create nutrient deficiencies in the soil. This depletion can be avoided by periodic addition of the right type of manures and fertilisers.

launch pad
AVJ Heightss in Greater Noida

The AVJ Group has expanded its footprint by launching a multi-storeyed residential project, AVJ Heightss, in Greater Noida earlier this week. Aimed at the middle and upper-middle class buyers, the project will offer one to four-BHK apartments in 600 sq ft to 2,400 sq ft area for prices starting Rs 21 lakh.

loan zone
Q. I am repaying a home loan taken from a bank. Now I have some cash in hand and I am confued whether I should use it to repay my loan or invest it in some tax-free bonds. Kindly advise. — K.C. arora 
S. C. Dhall ...
A
. The returns from tax-free bonds are much higher as compared to the effective cost of a home loan for investors in the higher tax brackets. The market is flooded with tax-free bonds. the National Housing Bank is also expected to hit the market soon.These are compelling investment options because the tax-free interest rates offered are very high and almost comparable with the pre-tax rates on bank fixed deposits.

Office space supply slides
Office space supply fell by more than 75 per cent during July-September period in the top seven cities compared with the previous quarter due to high vacancy in completed buildings and poor commitments in the under-construction projects, according to property consultant CBRE.

realty bite 
3C to invest 3,500 cr in Noida project
Realty firm The 3C Company will invest ~3,500 crore on developing a mixed-use project at Noida comprising a 5-star hotel and branded homes, to be managed by hospitality major Four Seasons Hotels and Resorts.

tax tips
Can valuer’s report be referred further?
S. C. Vasudeva email your queries to realestate@tribunemail.com
Q
. I am the owner of a plot which is situated in a good locality with an area of more than 500 sq m. The value thereof being more than ~ 30 lakh the Wealth Tax return was filed for the financial year 2011-12 on the basis of a valuer’s report. The Assessing Officer has referred the valuation to a valuation officer. Is the wealth tax officer not bound to accept valuation report of the registered valuer and can he refer the matter to a valuation officer? — S.K. Sharma

 





 

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changing realty: kasauli-solan area
Counting on camping
The overall slowdown in Himachal is making developers and builders explore other avenues for getting the maximum return from their land bank
Ambika Sharma

The real estate scenario in Himachal Pradesh is dismal as the prices have been stagnating in most of the areas for over 18 months now. Hardly any new residential projects have been launched here and the demand too is low due to the overall economic crunch. With permissions for acquiring a house in the hills being stuck up in lengthy procedures of Section 118 of the HP Land Reforms and Tenancy Act, the realtors who had invested in various commercial ventures, are now trying to diversify. So the state is witnessing a “realty diversification” trend.

Developing camping sites equipped with wide-ranging entertainment activities in the lap of nature appears to be the new flavour in hill stations of Himachal Pradesh.

Since land is available on lease for setting up camping sites, it spares realtors the hassle of buying land, and even outsiders are exploring this option which is being considered a safe investment.

Land prices have refused to fall despite recession in the realty sector and the investors are hence looking for options where returns are quick and risk is minimal. The land required for such camping sites is usually not fit for setting up resorts or raising housing ventures hence it is available at rates lesser than those existing in the prime areas like along the highways or main district roads.

Even small ventures promise ready returns, and this is an added advantage for the realtors who are not keen to invest in other ventures — commercial or residential.

With the hotels and resorts promising barely 30 per cent occupancy on an average in a year and the number of unoccupied houses in Solan district increasing from 15.3 per cent in 2001 to 22.3 per cent in 2011, the realtors appear to be diversifying towards such ventures which not only promise assured returns but are also low risk as the base investment cost is not much.

Moreover, large scale commercialisation which has taken place in every nook and corner of the hills has made several tourists to look for unexplored and new sites in place of the over crowded established hill stations.

While the idea of develop camping sites is not new, there appears to be a surge in the demand for such adventure sites in Solan district that is in close vicinity of Punjab, Haryana and Chandigarh.

A number of realtors from the area are now scouting for locations where such sites that offer facilities like adventure sports, camping areas and quality food etc can be provided to tourists.

“Since people from the plains visit the hills in search of solitude, a quiet sojourn amidst the serenity of hills far from the city’s hustle and bustle, is the perfect answer for those wanting to spend a few days in the hills”, opined Anil Manrao, a builder who is exploring the possibility of setting up such a site near Subathu.

Sites close to water bodies like Gamber River, Giri River, etc., appear to be the hot spots for such projects where realtors are coming forward to buy land. Large stretch of virgin unexplored hills offering an unblemished aura of green and clean environs is gradually becoming the first choice of the realtors.

While such ventures can be undertaken on a stretch of 1-2 bighas in the beginning, gradual expansion can be done once the demand catches up explains Manrao.

With land availability in prime areas, including along the national highways, state highways and other main roads being very less, the focus of the investors is on sites located in the interiors where the demand is less at present.

According to the prevailing rates a stretch of one bigha land is priced between ~25 lakh and ~30 lakh.

Camping in tents, rock climbing, rappelling, river crossing, trekking, etc., are some of the activities being offered at these camping sites.

A one-and-a-half bigha area has been developed into one such camping site at Churwadhar village in the Rajgarh area of Sirmaur by an enthusiastic youth Rashiq Bihari who has been running his venture for about a year. Promising trekking, rock climbing and rappelling among other adventurous activities the site has been attracting the attention of visitors from Delhi, Punjab, Haryana, Chandigarh, etc.,

“The realty sector is now focusing on this new demand among the realtors who are on the look out for such picturesque sites”, says A.K. Kalra, Kasauli-based real estate consultant

“Since scores of school groups routinely visit such sites from Chandigarh and its nearby areas, the scope to earn is very good”, says Manrao.

Though the investors have been pleading before the government to relax the norm of seeking individual permissions under Section 118 as the builders, too, invest after obtaining this permission, but no such relaxation has been allowed by the state government.

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HC declines non-agriculturalist Himachalis’ plea 
Need permission to buy property in state

Non-agriculturists in Himachal Pradesh seeking to buy property other than what is offered by the state housing board will still have to seek permission from the government, the Himachal Pradesh High Court has ruled. The high court declined to interfere in Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act of 1972, which makes such permission mandatory.

Dismissing a bunch of petitions which challenged the Section by saying it was against the basic structure of the Constitution, a division bench of Chief Justice A.M. Khanwilkar and Justice Kuldip Singh observed in their October 1 order: “The petitioners are not entitled to any relief.”

Several petitioners said drastic changes have been made in the original Section 118 of the act by carrying out several amendments.

Section 118 prohibits even non-agriculturist Himachalis from buying land in the state.

The original purpose of the Act was to protect farmers, amend and consolidate the laws relating to tenancy and agricultural land, and also provide for certain measures of land reforms, the petition said.

The entire purpose as well as the aims and objectives have been lost since Section 118 of the original Act has been drastically amended from time to time, the petition claimed, adding that the procedure for acquiring land by a non-agriculturist was prescribed under Rule 38-A.

“A monopoly has been created in favour of the agriculturist alone to acquire land, whether the land is agricultural land or subservient to agriculture or not. It has become virtually impossible for non-agriculturists (even residents of Himachal Pradesh) even though they may belong to the poorest section of society to buy any land whether in a town or in a village,” the petition said.

“There is no rational qualification between agriculturists and non-agriculturists,” the petition said, claiming that there was a violation of the basic structure of the Constitution, more particularly Articles 14, 15, 19 (e) and (g) of the Constitution.

Article 14 deals with equality before law; Article 15 provides that no citizen, on grounds of religion, race, caste, sex or place of birth, be subject to disability, liability or restriction.

Article 19 (e) offers the right to reside and settle in any part of the country to citizens; Article 19 (g) offers the right to practice any profession, carry on any occupation, trade or business.

The petition said the amendments carried out in the land reforms Act, after the Act was put in the Ninth Schedule of the Constitution have not been included in that schedule.

The amendments do not enjoy protection under Article 31 (B) (validation of certain acts and regulations without prejudice to the generality of provisions), it said. The court, however, disagreed with the contentions. — IANS

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real talk
Adopting green with gusto

Green buildings have got wide acceptance in India as more and more customers have realised the benefits of the environment friendly materials that are used to build these buildings, and more developers are coming up with such energy-efficient projects. Tata Housing, a pioneer in bringing this concept to the country was recently felicitated for 'Outstanding Contribution', at the GreenCO Summit 2013 organised by The Confederation of Indian Industry (CII - Western Chapter) at Suzlon One Earth in Pune. The group has also been acknowledged by the Indian Green Building Council (IGBC) for its contribution to eco-friendly construction. All projects of the group from value to luxury homes are sustainable green developments under the guidelines of IGBC. “Tata Housing is the highest contributor to green buildings with 53 million sq.ft being registered out of 1.51 billion sq.ft under IGBC”, says Brotin Banerjee, MD & CEO, Tata Housing. He shares his group's “green vision” and how this concept can change the realty landscape in the country in an interview. Excerpts:

The cost of eco-friendly buildings is a major factor in these not getting very popular in India. Comment.

Even though the green buildings usually cost 5-7 per cent higher than the conventional buildings, but once these systems are in place, developers are able to utilise them for a longer time span.

Green building materials offer specific benefits to the developer as well as the buyer and are becoming a key factor of consideration for consumers. These have benefits like reduced maintenance/replacement costs over the life of the building, energy conservation, improved occupant health and productivity, lower costs associated with changing space configurations and greater design flexibility.

The number of certified green buildings in India has witnessed a four-fold growth in the last four years. This is testimony to the growing popularity of the concept. Currently, according to IGBC report India with more than 2000 registered green building projects covering 1.54 billion sq ft is among the top five countries on the world green map.

Is the government taking sufficient steps to encourage such buildings and to increase their popularity?

A lot is being done in this field by the government as well as by individual players. The Indian Green Building Council (IGBC) is the first rating standard developed in India, especially for residential housing. It is based on accepted energy and environmental principles and strikes consistency between the recognised practices and evolving concepts.

Certification is a way to validate, rate and assess green buildings by an independent body.

The government also offers incentives for energy efficiency measures such as solar lighting, LED lighting, rainwater harvesting, waste heat recovery and use of environment friendly materials. There are various other environmental conscious Standards Setting Organisations (SSO) and Standard Developing Organisation (SDO) like LEED (Leadership in Energy & Environmental Design), GRIHA (Green Rating for Integrated Habitat Assessment) and IGBC (Indian Green Building Council ) which have aided in developing technical standards, on safety standards etc., andestablish characteristics required for a product or process meant to be safe for humans and environment.

What measures has your group be taken to make buildings eco-friendly?

We have invested significantly in identifying newer and efficient green technologies and also have an in-house research and development function that specifically focuses on this aspect. The five main measures which should be followed include:

* Design and architecture: Design and architecture of a green building, including landscaping and the exterior design, should ensure there is more shaded area and also the area to plant and grow local species of plants is within the plot.

* Conservation of water has to be aimed in various ways. Rain falling over the whole area of the complex should be harvested and used in the building. The toilet design should be chosen to flush with minimal water and plumbing should have separate lines for drinking and flushing. Used water from kitchen and bath has to be treated and reused for gardening.

* Use of solar/wind energy: The solar and wind energy has to be used to supplement the electrical grid power. Rooms are to be designed to use the natural light so as to minimize the usage of electricity. CFL and LED light fixtures save the energy. Efficient insulation in walls, ceilings and floors should be used for better temperature control.

* Solar water heating: Fully programmable solar hybrid water heating systems make available hot water instantaneously on 24×365 basis. Such a solar water heating system will save at least 7.2 units/flat/day for an average of 300 days.

* Sewage and garbage processing: Presently, sewage is treated by physical and biological treatment units using conventional method. In another natural treatment system, they use wetland species for sewage treatment. This ancient technology using wetland species is named root zone cleaning system. Such a root zone of plant along with the soil system plays an important role in wastewater treatment. The treatment efficiency is 90 to 98 per cent.

As told to Geetu Vaid

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Vacancy levels in malls decline 

The vacancy levels in malls have come down to 14.51 per cent in July-September quarter mainly due to decline in supply of new mall space, a recent report said. According to a survey by real estate consultancy firm Cushman & Wakefield, the vacancy levels declined by 0.6 per cent to 14.51 per cent compared to 17.51 per cent in Q2 2012.

Cities like Pune, Bengaluru, Chennai, Ahmedabad and Kolkata witnessed a significant decline in mall vacancy levels, while marginal rise in mall vacancy was recorded in Mumbai and NCR. Vacancy levels in Hyderabad, on the other hand remained stable.

A total of 7.7 lakh sq ft of mall space was added during the quarter, of which 7 lakh in Pune and 70,000 sq ft in Kolkata, the report said. “Given the low availability of quality retail spaces, select established main streets continue to gain traction.

International and national apparels, footwear, food and beverages and jewellery retailers seem to be expanding aggressively.

“Landlords are being sensible and in case of excess supply, they are reducing the rentals even in main streets,” Sanjay Dutt, Executive Managing Director- South Asia, Cushman & Wakefield India said.

He noted the demand for quality mall spaces located in areas having good residential catchment is on the rise. “Reduction in mall vacancy over consecutive quarters in the past, points towards healthy demand for such spaces from retailers. Contrary to the trend, cities like Pune and Kolkata are seeing mall vacancy decreasing despite influx of fresh mall supply. — PTI 

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Price jump along Dwarka Expressway

Housing prices have jumped nearly three-fold on Dwarka Expressway in Gurgaon during the past five years to ~7,000 per sq ft but the slow pace of constuction of highway and litigation issues have become a major hurdle for growth of this corridor, property consultant DTZ has said.

Property consultant DTZ in its report ‘Investment Hotspots in Delhi NCR’ said that average residential capital value on Dwarka Expressway has risen from ~2,426 per sq ft in 2009 to ~7,000 in 2013.

The 18-km-long Dwarka Expressway, also known as Northern Peripheral Road, is a eight-lane expressway linking Dwarka-Gurgaon. It is being developed by Indiabulls group under public private partnership (PPP).

DTZ said that Dwarka Expressway is one of the latest hotspots for real estate opportunities for home seekers and potential investors. Proximity to the national capital and IGI airport gives Dwarka Expressway an edge over other upcoming real estate destinations such as Dharuhera, Bhiwadi, Yamuna Expressway and Noida-Greater Noida Expressway.

However, the consultant said that “the snail’s pace at which the construction of the expressway is progressing along with litigation issues with respect to land acquisition on a 4 km stretch of the expressway are proving to be major hurdles in the growth of the corridor”.

Prominent developers like BPTP, Puri Construction, Raheja, Mahindra Lifespace, Sobha Developers, Ansal Housing, Assotech, Paras and Ramprastha have launched more than 50 projects on Dwarka Expressway and are at various stages of construction. These projects range from mid end to premium segment.

“Between 2009 and 2013, the location has witnessed the second highest number of project launches, after new sectors in Gurgaon (in terms of number of units). Approximately 18,000 residential units have been launched in the last five years across 44 projects ranging from mid to premium category,” it said.

Dwarka Expressway is expected to receive second highest number of housing units (about 24,160) between 2013 and 2018.

With approval of Land Pooling policy by Delhi Development Authority (DDA), which has unlocked substantial land for both housing and commercial use in Delhi, the consultant said real estate growth on Dwarka Expressway is expected to take a hit.

“Adding on to the growth inhibitors is the slow pace of construction of the expressway and the litigation issues. In order to realise the envisaged potential of this corridor, it is essential for government to expedite the infrastructural development which currently is at a nascent stage,” DTZ said. — PTI 

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designer dens
Travellers’ nest
Bhawna Jaimini

A home says a lot about its owners and travel writer and photographer Ajay Jain’s house proves this beyond a doubt. The 1,600 sq ft home in the upmarket Greater Kailash area in South Delhi belonging to avid travellers Ajay Jain and Anubhuti Rana is an ever-changing landscape of cultures and a window to the world. Before becoming full-time travellers, Ajay was a financial writer and Anubhuti was a German language expert. As Ajay wanted more from life than just writing about money and technology and wanted to leave a legacy, so he switched over to travel writing and photography.
Light fills the living room from the balcony
Light fills the living room from the balcony
Authentic American pool table adds grandeur to the living room
Authentic American pool table adds grandeur to the living room

Their house stands testimony to their love for travelling, which is reflected in the large number of photographs, art pieces, and paintings from around the world on display. It is like entering a travelogue.

While the tranquillity and sacredness of a monastery can be experienced through the deep gaze of a young monk on one of the walls, the miniature vintage cars on display in the Study from USA reminds one of an era gone by, and the Turkish chandelier displays the perfect amalgamation of Asia and Europe. Everything tells a story of the land it belongs to.

The couple, who got married six years back, bought their second-floor house in 2008. They hired a contractor instead of going to an interior designer or an architect to let their home reflect their own taste and comfort. “While doing the interiors our goal was clear, that it should reflect our personalities and we didn’t want a designer to put in his interpretation of us in our home, so we got down to designing it ourselves”, says Ajay. Anubhuti recalls, “It took us about three months to change the face of the house, it was quite different from what you see today.”
Living room in vibrant colours
Living room in vibrant colours
Thai fan from Bangkok adorns the dining room wall
Thai fan from Bangkok adorns the dining room wall
The shot of a young monk in the study
The shot of a young monk in the study

Spatial quality

There is a clear segregation of public and private spaces — the huge living room, a Study, and kitchen are separated from the dining lobby and two bedrooms through the recessing technique. The difference in levels of the two areas adds a distinct character to the home that Ajay feels would have been missing had it been on a single level.

Anubhuti is not very fond of having too many bedrooms in a house and prefers inter-connected open spaces flowing into each other and serving many purposes at the same time. So what is a Study now was originally a bedroom that the couple converted.

Decor mantra

Permanence and dynamism go hand in hand for Anubhuti and Ajay. With each new journey they take together, the house, too, gets rejuvenated along with them.

Each piece in this home has a story to tell — a story from their years of travelling together. The huge framed photograph of a settlement in Zanskar on the living room wall, the portrait shot of a young monk in the Study, Thai fan from Bangkok in the dining lobby — all add their own ethnic flavour to the otherwise modern setting.

The most appeasing quality is that each big or small piece has its own unique identity and yet blends well to give an overall singular appeal to the house preventing a feeling of chaos or a riot of colours.

Harmony of contrasts

The pale yellow walls make sure that the focus remains on what lies within and on the walls, as the use of bold colours or textures on walls would have camouflaged the furniture and decor. The house also displays the couple’s love for all things asymmetrical. In the living room alone they have used three different seating arrangements in complementary colours, green and purple with varied textures in upholstery.

The red colour authentic American Pool table between the living and the dining areas breaks the spell of subtle colours and subdued textures to add prominence and grandeur to the interior.

The four spotlights on the pool table emphasize Ajay’s fondness for the game and his design sensibilities for interpreting the table as a piece of art.

Lighting it up
(Above) Anubhuti Rana(left) and Ajay Jain Mongolian guitar from one of their trips among others
(Above) Anubhuti Rana(left) and Ajay Jain Mongolian guitar from one of their trips among others Photos by the writer

The house receives ample daylight and the use of artificial lighting has been manipulated to make the decor more articulate. The huge floor-to-ceiling opening in the wall separating the living from the balcony lets in light until the last moments of dusk.

The wall between the living and the dining was a plain drab wall that added a tunnel-like quality to the dining owing to its length to breadth ratio. To overcome this, a huge semi-arched window with a broad green frame was added to connect the two spaces and mute the effect of dark areas.

On choosing green colour for a window frame, Ajay says, “The window here is not serving the conventional purpose, it is connecting the two spaces so we thought it needs to have a special character than the rest of the windows in the house. Also the green colour goes perfectly with the pale yellow walls.”

Into the future

The huge balcony abutting the living area lacks traces of green as the couple is out travelling about 3-4 months in a year. In such a scenario, it is difficult to provide proper care to plants. Ajay is looking for solutions as drip irrigation so that they too can have their own terrace garden but for now, huge Gulmohar trees in the park opposite to their house provide the missing ‘green element’ to the house.

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Green house
Let manure work its magic
Amarjeet Singh Batth

Just as humans need balanced diet for proper growth and development, so healthy soil is the necessary for healthy plants in your garden. According to a Japanese saying, whatever you get from soil must be returned. Continuous cultivation, growth of weeds, leaching and erosion create nutrient deficiencies in the soil. This depletion can be avoided by periodic addition of the right type of manures and fertilisers. However, it has been seen that many gardening enthusiasts have very little knowledge about the kind of manure that is good for different plants and depend entirely on the gardener or the nursery owner when it comes to selecting manure for their garden. With awareness about the harmful effects of chemical fertilisers have increased the preference for organic and self-prepared manures. Some of the common practices for producing manures for home garden are:

Compost

Compost is a technique to utilise the organic waste into productive usage. The garden waste (like cabbage and radish leaves), kitchen refuse forms an excellent ingredient for compost. These organic wastes decompose with the help of bacteria when subjected to anaerobic decomposition and form compost which is rich in macro and micro nutrients.

Method

* Dig a pit about 3 ft long and 2 ft wide and 2-3 ft deep in a well-drained location in the backyard in an area that has partial shade as sunlight during summer kills the bacteria.

* Heap up the pit with layers of organic waste followed by soil. Make a concave top to retain water and mix urea in the compost mix to accelerate decomposition.

* Turn the pile and moisten the layers regularly. It takes three to four months to turn the organic waste into complete compost.

* If space permits, prepare several compost pits with a month’s gap for round-the -year supply.

nNever put inorganic material like polythene bags, etc in the pit, as these will never disintegrate into organic manure.

Leaf mould

Leaf mould is obtained by using garden waste, garden sweepings, dry foliage and dry woody material which are decomposed with a layers of soil mixed with urea. The pit size and procedure is the same as for making compost. In normal conditions, it takes six months for the leaves to be reduced into mould, its application at least once a year is recommended.

Liquid manure

Liquid manure is prepared by using cow dung in excess of water. It is an effective way in which the nutrients are made available to the plant in useable form and the results are visible in a short time span.

Method

* Take 15-20 kg of fresh cow dung and put it in a drum of 100 liters capacity and fill it half with water. Cow dung can also be mixed with powdered oil cakes of Karai or mustard or mahow cakes.

* Allow the fermentation to take place which will depend upon the weather condition. It takes a month plus time during hot summer months and much more during cold winters for this to be ready.

* The completion of fermentation of the slurry is indicated when the residue settles at the bottom of the drum. Dark liquid on the upper layer is siphoned off in another container and is diluted by adding water till the liquid appears in light tea color.

* Liquid manure is replaced with normal irrigation which is very effective especially for potted plants. Take a mug and spill it over the moist soil bed of a well-established actively growing plant. As a caution do not spill over the foliage of the plant.

Farmyard manure

It is a complete manure and by and large meets all the requirements of the plant. It consists of dung, waste matter from a cattle shed which is collected on daily basis in a pit of size made according to the requirement.

* FYM is matured in pits. The pit is filled 1-2 ft above the ground and plastered with the slurry of the cow dung and soil which is left undisturbed for four to six months.

However, for best results never use fresh cattle dung for farmyard manure as it does not mobilise the nutrients. In cities, the storage of FYM poses a problem. So dry the FYM and store it in a polythene bag or container.

Difference between fertiliser and manure

Manures are less washable and have a slow impact, while fertilisers cause immediate and short-lived effect. A balanced application of manures and fertilisers yields the best results.

Manures are derived from residues of plants and animals which add organic matter in the soil. These have three major functions — as a reservoir for nutrients; providing humus-forming material and improving moisture holding capacity of the soil; and increasing micro-organisms’ activity which changes organic form of minerals into simpler forms that can be absorbed by the plants. 

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launch pad
AVJ Heightss in Greater Noida

The AVJ Group has expanded its footprint by launching a multi-storeyed residential project, AVJ Heightss, in Greater Noida earlier this week. Aimed at the middle and upper-middle class buyers, the project will offer one to four-BHK apartments in 600 sq ft to 2,400 sq ft area for prices starting ~21 lakh.

“We are offering meticulously planned big and airy rooms, artistically designed kitchens, large windy balconies and best-in-class amenities, suitably crafted for comfortable living”, said Vinay Jain, Chairman & Managing Director of AVJ Group.

The project enjoys proximity to good schools, hospitals, markets and malls and is in the heart of a world city that boasts of a scintillating Formula 1 racing circuit, Night Safari etc.

Astrum plans Faridabad’s tallest residential project

FDI-funded group Astrum Homes, announced its foray into the Faridabad market with a premium housing project in joint venture with SRC Group of Faridabad. This 13-acre project will be developed in an integrated, self-contained format in the upcoming area of Sector 49 in Faridabad. Under this joint venture Astrum Homes will develop and market the upcoming project.

SRC group, with its firm roots in Faridabad, is one the frontrunners in real estate market of Faridabad. The upcoming residential project is being designed by DBI Design from Australia.

The planned project will have mix of 2, 3 and 4BHK apartments. It will offer world-class amenities to its residents such as club house, indoor and outdoor sports facilities, neighbourhood retail, 3-tier security, play areas, parks, ample open and parking spaces, power backup, etc. It is also planned to have the tallest residential tower of Faridabad. This iconic structure will be of more than 30-storey height.

The project is at just 20 minutes drive from Gurgaon or South Delhi.

— Based on information provided by the developers

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loan zone
S. C. Dhall

Q. I am repaying a home loan taken from a bank. Now I have some cash in hand and I am confued whether I should use it to repay my loan or invest it in some tax-free bonds. Kindly advise. — K.C. Arora

A. The returns from tax-free bonds are much higher as compared to the effective cost of a home loan for investors in the higher tax brackets. The market is flooded with tax-free bonds. the National Housing Bank is also expected to hit the market soon. These are compelling investment options because the tax-free interest rates offered are very high and almost comparable with the pre-tax rates on bank fixed deposits.

The decision may not be that easy for those with a home loan to pay. The common refrain is that if there is any surplus money, shouldn’t it be used to prepay the loan. Most borrowers may opt to pre-pay their loans than invest in tax-free bonds. However, consider these factors before you decide.

Look at pre-payment as an investment

Much of the confusion gets cleared if you see debt pre-payment as just another investment. If you prepay Rs 1 lakh of a personal loan which was charging you an interest rate of 15 per cent, you save Rs 15,000 in interest per annum.

And since money saved is money earned, your Rs 1 lakh will effectively earn you Rs 15,000 in a year. That’s a good return and should be the first option for anybody with surplus cash. Evaluate your debts on the basis of the interest you are paying and start with repaying the costliest ones.

You must also consider the risks involved in the investments when you make the comparison. You should only consider relatively safe investments such as bank fixed deposits and bonds.

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Office space supply slides

Office space supply fell by more than 75 per cent during July-September period in the top seven cities compared with the previous quarter due to high vacancy in completed buildings and poor commitments in the under-construction projects, according to property consultant CBRE.

“Less than 3 million sq ft of office space entered India’s prime real estate market in the quarter ending September 2013 — dropping by more than 75 per cent q-o-q over last quarter’s 10 million sq ft of fresh office space supply and by nearly 50 per cent over the same period last year,” CBRE South Asia Pvt Ltd Chairman and Managing Director Anshuman Magazine said.

The July–September period witnessed the lowest addition of office space over the past several quarters, he added.

According to CBRE’s India Office Market View, the total office space supply in the seven major cities stood at only 25.41 lakh sq ft during July-September period against 108.04 lakh sq ft in the previous quarter.

The quarterly report provides a summary of office space movement across the seven major cities — NCR, Mumbai, Chennai, Kolkata, Pune, Hyderabad and Bangalore.

Delhi-NCR accounted for just about 12 per cent of the total supply addition in the seven cities. Office supply in NCR declined to mere 3.24 lakh sq ft in July-September as against 15.53 lakh sq ft in the previous quarter.

“This rationalisation of office space supply across the top urban centres of the country has been largely attributable to the prevailing high vacancy pressures in completed projects and poor commitment levels for under-construction properties,” Magazine observed.

“According to our report, owing to a slowdown in construction activity, pent up supply has been lined up across various micro-markets for release over the next six to nine months, which might result in pressures on asset pricing,” Magazine said. — PTI 

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realty bite 
3C to invest 3,500 cr in Noida project

Realty firm The 3C Company will invest ~3,500 crore on developing a mixed-use project at Noida comprising a 5-star hotel and branded homes, to be managed by hospitality major Four Seasons Hotels and Resorts.

In 2011, the Noida-based realty firm had announced its tie-up with Four Seasons for management of its 300-keys hotel and 180 branded residences, each costing up to ~20 crore. “We have got all permissions, including the environmental clearance, for mixed land use development. The project ‘Delhi One’ will have hotel, residences, luxury retail and office spaces,” The 3C Company Director Vidur Bhardwaj told reporters in New Delhi while launching the Four Seasons branded homes.

The investment on this project, spread over 12.5 acres, will be ~3,500 crore, he said, adding that private equity firm Red Fort Capital has invested in this project. About 3.5 million sq ft of area would be developed in this project, comprising 2 million sq ft of office and 3,00,000 sq ft of luxury retails.

“We will be selling these residences by invitation at ~22,000-26,000 per sq ft. The size of flat is about 7,500 sq ft,” Bhardwaj said. The project will be complete by 2016.

The concept of ‘branded residences’ is catching up in India with many real estate developers launching such project in tie-up with hospitality chains and fashion/iconic brands.

Earlier this year, Private equity firm IREO had entered into management agreements with Hyatt Hotels Corporation for branded ‘Grand Hyatt’ residences and a ‘Grand Hyatt’ hotel in its large township project in Gurgaon. In March, Superetch tied-up with Italian fashion brand Armani group for interior designing of 100 super luxury residences in one of its project at Noida.

Recently, Mumbai-based Lodha Developers has also tied up with US-based Donald Trump to bring Trump branded residences in the financial capital. Realty firm Homestead has two luxury branded residences projects in Gurgaon — Michael Schumacher World Tower and Ballet by Sharapova. — PTI 

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tax tips
Can valuer’s report be referred further?
S. C. Vasudeva email your queries to realestate@tribunemail.com

Q. I am the owner of a plot which is situated in a good locality with an area of more than 500 sq m. The value thereof being more than ~ 30 lakh the Wealth Tax return was filed for the financial year 2011-12 on the basis of a valuer’s report. The Assessing Officer has referred the valuation to a valuation officer. Is the wealth tax officer not bound to accept valuation report of the registered valuer and can he refer the matter to a valuation officer? — S.K. Sharma

A. In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets which are includible in the wealth for the purpose of the levy of the Wealth Tax is to be determined in accordance with Section 7 read with Schedule III to the said Act. Schedule III does not prescribe any method of valuation in respect of the urban land. In the residuary clause of schedule III, it has, however, been provided that the value of any asset other than cash being an asset which is not covered by Rules 3 to 19 shall be estimated to be the price which, in the opinion of the Assessing Officer, would fetch if sold in the open market on the valuation date. The said Act also provides where valuation of any asset is referred by the Assessing Officer to a Valuation Officer, the value of the asset shall be that which is determined by the Valuation Officer to whom reference has been made by the Assessing Officer.

In view of the above provisions, it is the Assessing Officer who has to determine the value of an asset for which specific provisions of the schedule III are not applicable. Section 16A of the aforesaid Act provides that where Assessing Officer is of the opinion that the value determined by the Registered Valuer is less than the fair market value, he may refer the matter relating to such valuation to the Valuation Officer. In my opinion therefore, the Assessing Officer can make a reference to the Valuation Officer in case he is not satisfied with the valuation made by the Registered Valuer. 

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What is meant by ‘urban land’?

Q. What is the meaning of the term ‘urban land’ which is covered within the provisions of the Wealth Tax Act for the purposes of assessability? — Vinod Kumar

A. Urban land means land situated:

(i) In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or

(ii) In any area within the distance, measured aerially,

(I) Not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten thousand but not exceeding ~1 lakh; or

(II) Not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ~1 lakh but not exceeding ~10 lakh; or

(III) Not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ~10 lakh, but does not include land classified as agricultural land in the records of the government and used for agricultural purposes or land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated or the land occupied by any building which has been constructed with the approval of the appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him or any land held by the assessee as stock-in-trade for a period of ten years from the date of its acquisition by him.

The above definition is applicable for assessment year 2014-15 i.e. financial year 2013-14. It has been explained in the relevant section that for above purposes the term ‘population’ means the population according to the last preceding census of which the relevant figures have been published before the date of valuation.

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How can I use amount in capital gains account?

Q. I sold a residential house and capital gain arising thereon was deposited under capital gains scheme account with the State Bank of India with the intention of purchasing a new residential house within the specified period. However, the same could not be purchased. What would be the status of the amount deposited under capital gains scheme account? — Ranjit

A. In case the amount deposited under capital gains scheme is not utilised fully for purchase or construction of new residential property within the stipulated period, then the amount not so utilised shall be treated as long-term capital gain of the previous year in which the period of three years from the date of transfer of the original asset expires and would be taxable in the previous year in which the period of three years expire. In such a case, the assessee can withdraw the unutilised amount at any time after the expiry of three years from the date of the transfer of the original asset in accordance with the Capital Gains Accounts Scheme 1988. 

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Tax implications for legal heirs with no title

Q. My father had bought a 300 sq m plot in Panchkula (under HUDA) from the original allottee (say Mr X) in 1981. My father died in an accident in 1987 and the plot was not registered in his name. Further we (three legal heirs) could not trace the sale documents for several years. In the meantime we had taken a Succession Certificate for his estate from the court. After a lapse of 15 years we finally located the misplaced documents and started the legal process of transferring the said plot in our name. Unfortunately, due to adverse circumstances we were forced to contact Mr X. A long legal battle ensued for several years as Mr X claimed his stake in the said property. As the legal process was taking too long, we decided to end the issue by going in for a compromise through the Lok Adalat in 2012.

According to the terms and conditions of the compromise Mr X was to become the legal owner f the plot, which he would then sell and keep 33.33 per cent of the sale proceeds, while the rest 66.67 per cent would be given to us (the three legal heirs).

The plot has been sold and the proceeds of the sale have been distributed according to the Lok Adalat judgment. Prior to the registry of the plot in the name of the new owner in the tehsil, Mr X was asked to pay Income Tax of 1 per cent of the whole amount i.e. 100 per cent of the sale proceed whereas we paid only 1 per cent of our share towards Income Tax. Effectively speaking we have become inheritors without the property being in our name. My query is:

What are the tax implications for us? (I am told that no tax is paid on the inherited proceeds)? All of us plan to invest the proceeds to buy property individually. — Neera Kumar

A. On the basis of the facts given in the query, your father had purchased a plot measuring 300 sq. m. in Panchkula from the original allottee in 1981, which was not registered in his name prior to his death in 1987. All the three legal heirs, therefore, became inheritors to a right in the said plot. On going through the orders of the Lok Adalat it is observed that the right of the three legal heirs in the said property stands established. Considering the above facts replies to your query are given hereunder:

* The amount paid by your father for the purchase of the plot shall be the cost of the right in the property in the hands of three legal heirs. In case the payment was made by your father on or before April 1, 1981, the fair market value as on April 1, 1981 shall be adopted and the same shall be indexed up to 2012-13 so as to arrive at the indexed cost of the plot. In case the payment was made by your father after April 1, 1981, the cost incurred shall be indexed up to 2012-13. Each one of the three legal heirs should be allowed the deduction to the extent of one third of such indexed cost from the consideration being paid by the original allottee for purchasing the said right in property. The balance of the two amounts will be treated as long-term capital gain in the hands of each of the three legal heirs. The same would be taxable in the hands of each of the legal heirs separately at the rate of 20 per cent plus education cess of 3 per cent thereon.

* The amount received by the legal heirs is not in the nature of inherited cash or bank balance but right in the property for the acquisition of which a cost had been incurred and therefore, the amount received towards the extinguishment of the right will be taxable being a 'transfer' in accordance with the provisions of Section 2(47) of the Income-Tax Act, 1961 (The Act).

* In case each one of you invests the amount so received towards the purchase of a residential house within two years after the date of the receipt, tax on the capital gain arising on the extinguishment of the right in the property shall not be leviable as an exemption can be claimed under Section 54F of the Act.

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