Clean Act
Homebuyers can expect more transparency in transactions as Noida and Greater Noida are now under the ambit of the UP Apartment Act 2010
Geetu Vaid

The decision taken by Noida and Greater Noida authorities earlier this week to bring the two areas under the ambit of the UP Apartment Act 2010, will go a long way in boosting buyer confidence in these micro markets that have frequently been in news due to litigations and court judgements, delay in delivery and unfair practices by the builders and developers.

While the ambiguity created by the application of provisions of the UP Industrial Act, 1976 in residential pockets in Noida, Greater Noida and Yamuna Expressway area created loopholes for developers, it was the buyers who were at sea when it came to getting a fair deal. All housing projects will now come under this Act. According to officials over 5, 00,000 nomebuyers in Noida and over 3,00,000 in Greater Noida will benefit from the strong legal framework provided by this Act.

What the Act offers

The implementation of the Act will ensure transparency in property transactions. The builders won’t be able to bring about changes in the original layout of a project. And in case they incorporate any alteration in the layout at a later stage, then they will need to take consent of each memeber of the housing society.

The likely date of completion of the project will also have to be specified and delays will cause penalty.

While it is heavily tilted in the favour of the homebuyers the clause of penalty on non-payment of EMIs by a buyer gives builders some respite. home buyers are.

The move has evinced mixed response from the Industry experts. Welcoming the move Anil Mithas, CMD, Unnati Fortune Group, said, “The Apartment Act will clear the confusion that was there in this belt. Resident welfare associations were in a confused state whether they should register under this Act or under the Industrisl Act and this had led to a number of court cases.”

Positive take

Terming it to be an empowering measure for the buyers Alok Tyagi, CMD ATN Group, said, “This move will bring in transparency and will benefit the customers. It will ensure the participation of the customers in the whole process from buying till allotment where they will be entitled to know everything about a project from legal rights, registry, sanction orders, layout plans, area, common areas and facilities, all types of charges etc.”

“It will prevent the developers from working in an arbitrary manner and they need to be more careful as well as answerable for their commitments. While established developers are already adhering to fair practices; however, this Act will make the erring bunch get their act together”, said Pawan Jasuja, Director of Finlace Consulting.

Objections

However, the clauses that have been termed to be buyer friendly have caused concern in the developers’ lobby.

Rohit Raj Modi, Officiating President, CREDAI NCR said, “We welcome the implementation of the Act. It shall be a guidance for the development in the region. However, it has failed to envisage the practical situation on the ground. It is our request to the state government to address the loopholes in the Act so that it is implemented in letter and spirit for the betterment of the consumer and the Industry”

CREDAI is in the process of preparing a list of suggestions to discuss the practicality od some of the clauses in this Act. One of the key areas of concern is the filing of Deed of Declaration on approval of plans. This document requires spelling out the common areas in detail and any modification requires the approval of the allottees in the project. This causes problems in large projects which are developed in phases over many years.

The entire land parcel of say 100 acres is considered as one project for the purpose of this Deed even though the first phase may only be 10 acres. Future phases will invariably require changes due to market or regulatory reasons. Such changes are not possible in the current scenario as taking consent from allottees is not practical.

Expressing similar concern Suresh Gogia, CMD, Ascent Buildtech pointed out, “The Act is opening pool of information for buyers but is leaving no space for developers to expand even horizontally . It is not possible for a developer to get the total project (specially for large projects) sanctioned on the very first day as it involves huge finances and the project becomes out of reach. The government must review it to bring a balanced Act with changes for equal opportunities for buyers and developers both”.

“Our suggestion is that the deed of declaration ought to be filed after obtaining Completion Certificate as is the case in Haryana. Alternatively, there should be a provision of declaring common areas phase wise so that future areas can be planned as per the prevailing market or regulatory scenario”, said a CREDAI spokesperson.

Raising the demand for single window clearance and land and tax reforms, Mithas said “A lot more needs to be done to end the trust deficit in this sector. Faster clearances can cut up to 20 per cent of the developers’ cost and along with this a better tax regime willgo a long way in stabilising prices as well as reduce the malpractices in the sector.

Market impact

While the implementation of UP Apartment Act is surely going to give a boost to the buyer sentiment in these NCR micro markets, a 10 per cent hike in land allotment rates effected by New Okhla Industrial Development Authority (Noida) and Yamuna Expressway Industrial Development Authority (YEIDA) earlier in the week is likely to lead to price hike in these areas.

The residential sector rates per sq m after hike range from Rs 68,750, Rs 47,920, Rs 34,900, Rs 29,170 and Rs 25,000 for category A,B,C,D and E. In Yamuna Expressway area the residential sector rate per sq m after hike is Rs 11,500. Group housing plot rate is ~14,000.

“After this hike, definitely, Noida and Yamuna Expressway will no longer remain cost effective regions for buyers. The cost of housing projects will increase marginally in near future and it will hamper sales of projects”, says Pawan Jasuja.

Though the actual impact of this move will be apparent after a few quarters only, developers are banking on the locational advantage of these markets, which, according to them, will keep the demand steady. “Even though the land allotment rates in Noida have been increased, a person buying a house will always prefer a destination or property where he has more confidence in the authority and the developer. So I am sure the buyers will not hesitate spend some extra amount,”says Abhay Kumar, CMD, Griha Pravesh Buildteck Pvt Ltd.

Platter of choice for homebuyers

Noida

Number of Residential Projects 290

Current Inventory (units) 28,702

Current Inventory (Mn Sqft) 52.43

Greater Noida & Yamuna Expressway

Number of Residential Projects 333

Current Inventory (units) 82,630

Current Inventory (Mn Sqft) 110.69

What will change

• Realtors will have to obtain permission from the buyers before going ahead with alterations in the layout of a housing project.
• Violation of the Act will lead to legal action against the realtor as buyer and authority are empowered by Act to lodge FIR against errant realtors.
• Delay in the delivery of flats will lead to penalty.

price index mohali

Price in Rs/sq ft

Acme heights colony

5-9 2000-4000

Phase-7

11-12 8000-12000

Sector-125

7-9 3000-4000

Sunny Enclave

7-9 3000-6000

Sector-91

9-11 4000-6000

Sector-69

6-13 9000-11000

Sector-70

10-11 6000-9000

Phase-3b1

9-11 8000-11000

Sector-79

7-10 7000-9000

Sector-67

12-14 6000-9000

Source makaan.com

realty bites
CREDAI recommendations

A CREDAI delegation comprising Lalit K. Jain, Chairman, C Shekar Reddy, President, Shri Sanjeev Srivastva, and Shri Jaxay Shah both vice-presidents, met the new housing minister M. Venkaiah Naidu and presented some recommendations on the new government’s theme of ‘Housing for all by 2022’. These recommendations have been drawn up on the basis of nationwide consultations that CREDAI had among its members.

Chairman of CREDAI welcomed the bringing together of Departments of Housing and Urban Poverty Alleviation and Urban Development within the same Ministry hoping that it would enable an integrated view on urban development and housing to emerge. He urged the government to implement the reports of the two Task Forces on Affordable Housing, and Rental Housing and the Committee to Streamline Approval Procedures for Real Estate Projects (SAPREP). CREDAI in its recommendations has also sought to reduce the cost of borrowing for the housing sector. This can be achieved by a mix of interest subvention for the low income borrowers on the one hand and increasing the access to finance by developers. To augment the finance for the housing sector, CREDAI has sought the removal of minimum requirement of 50,000 square meters and capital requirement of $5 million for FDI in case of affordable housing, automatic ECB and higher refinance from NHB to Housing Finance Companies.

Child centric homes in Bangalore

Sterling Developers, a Bangalore-based realtor and Gera Developments, leading developers from West India jointly launched Gera’s ChildCentricTM Homes (CCH) in Bangalore earlier this week. The concept of CCH was successfully launched earlier this year by Gera Developments in Pune at their project Song of Joy, Kharadi. It will be soon launched in Goa.

The concept of ChildCentricTM Homes is an innovative solution offering parents high levels of convenience along with an opportunity for their children to discover their passion and be the best they can be while living in premium contemporary homes. The highlight of ChildCentricTMhomes is the holistic 360° approach to family living taking into account parents aspirations and needs with regards to their children. Amongst the many features provided at ChildCentricTMhomes there are tie-ups with world class celebrity academies for professional coaching like Viswanathan Anand, Mahesh Bhupathi, Shankar Mahadevan, Shiamak Davar, Anil Kumble at the project.

This first of its kind concept was launched at Joy on the Banks at Varthur in the internationally acclaimed Whitefield area of Bengaluru. This project marks the entry of Gera Developments into Bangalore.

Joy on the Banks will be a multifaceted living space that allows a child to choose and develop across art, sports, dance, music etc., is something that every parent wants to offer their child. Apart from these amenities children will also have offerings like Vedic maths, computer labs &age specific gaming rooms, yoga, BMX, skateboarding, designated gurukul areas and personality development programs with Dale Carnegie Institute.

Tata Housing tied up with the internationally renowned Sand Artist SudarshanPatnaikto celebrate World Environment Day through his art work in Puri. Based on United Nation's theme for World Environment day 2014, 'Raise your voice, not the sea level' Sudarshan created a sand sculpture depicting the importance of protecting the environment and building eco-friendly homes at Sudarsan Sand Art Institute, Puri. The objective of this initiative was to spread the message of conservation and enhancement of nature, raise awareness and encourage citizens to take action and help reduce the potential impacts of climate change.

real talk
Senior living segment needs policy thrust

India today is home to over 98 million seniors above the age of 60 years, and this demographic is growing at the rate of 3.8 per cent per annum. The population size would reach 240 million by 2050 (Source: Jones lang LaSalle report 2012). Therefore, there is a huge potential in serving this demographic and senior living is one of the most comprehensive offering which is coming up in a big way in India.

According to a research conducted by AZ Research Company in early 2013, three out of every four seniors are open to moving to an assisted senior living community in India. Today seniors are living alone in an environment where they are not satisfied with the current security options and 80 per cent seniors are concerned about break-ins and theft. As many as 70 per cent want to move out of town into a home of their own and 42 per cent seniors rank security among the top three requirements from a living space. More than 80 per cent seniors seek to sustain lifestyle or improve it as they do not wish to ‘retire’ and more than 75 per cent seniors want to socialise, club, party, exercise, play sports & stay healthy and active. Therefore, there is a positive upswing in the demand for such communities in India and this segment is emerging and evolving very fast, though still is in a nascent stage. “Senior living is a very niche sector and it is important to serve this demography with greater emphasis on concentrated healthcare services and seva bhav”, says Tara Singh Vachani, CEO Antara Senior Living, who has launched a senior living project in Dehradun. In an interaction she talks about the trends and the facilities that are essential for such projects. Excerpts:

Why has the of senior living trend not caught on in India so far?

In contrast to senior living in the W est, the concept of housing for seniors as a specific asset class in India continues to have social stigma associated with it, which has restricted the growth of the sector at large. However, this trend is catching up in India and there is a positive upswing in the demand for such communities. There is now a growing realisation among urban households, who in the past 20 years have witnessed a marked increase in nuclear families, that families are no longer equipped to take care of their aged family members. In this changing social environment, concepts such contemporary retirement resorts are becoming acceptable and popular. While this has prompted developers to come up with projects targeting the independent seniors, the country is yet to see integrated continuing care retirement communities.

What kind of senior living projects are more in demand in India — assisted living ones or the usual ones.

Progressive seniors are looking for residential options that provide them a holistic lifestyle, where they do not have to worry about the day-to-day chores. In keeping with this thought, I feel that assisted living is projects will be more in demand.

Do you think government should give some incentives to this segment?

The government should pay attention to senior living and identify it as a separate sector. Policies should be drafted to secure the future of seniors in the country.

You have launched a project in Dehradun recently. What are the unique features of this?

Antara has been created with a specific clientele in mind. From a full time on-site nutritionist to facilitate healthy food choices, to a 24/7 concierge service, it offers a worry-free lifestyle in a quiet, enchanting setting; while still being accessible to and from main cities across the country like Delhi, Mumbai, Bangalore, Kolkata by five daily flights. It is located in Purukul, Dehradun. Antara is set against the backdrop of Mussoorie hills and is spread over 20 acres. Designed by internationally renowned architects Perkins Eastman from New York and Esteva I Esteva from Spain and built by Shapoorjii Pallonji.

The residents will be provided housekeeping, maintainence and grocery buying and several other such services. Residents can choose from over 200 beautiful apartments at 1500 -10,000 sq ft ranging in price from Rs 1.35 cr -Rs  8.25 cr.A dedicated, service-centered workforce of over 300 people will cater to a resident’s every need.

How much investment you are making in this project.

The project cost for Purukul is Rs 520 for which the equity investment of Max India is Rs 115.

What are your future plans?

Currently the focus is on developing one community in Dehradun which will be operational in 2016. Post which, we will take a measured approach to growth.

— As told to Geetu Vaid

guest column
Pay for the area that you get

Area specifications that decide the total cost of an apartment are nothing less than a puzzle for a first time home buyer. The developers quote the per sq ft price for an apartment and the total area is mentioned initially, but while finalising the deal many buyers find that they have been made to pay for area that they actually do not possess. So this makes a good deal turn into an expensive one. It is important to know about the difference between super area, built up area and carpet area to avoid overpaying for your house.

Points of difference

Actually there are three different terms that the builders may use while calculating the cost of a residential unit. These are — super area, built up area and carpet area. For any customer understanding built up area is easier as this is the area which is under the possession of the customer. Built up area means the entire area enclosed by its peripheral walls, including area under walls, area under columns, half of the area of the wall common with the other apartment, area of plumbing / electric shafts of the said apartment, total areas of all balconies and cupboards and 50 per cent area of open terrace attached, if any, which forms integral part of the said apartment.

Super area means the built up area plus the proportionate area used under common services and facilities like corridors, staircase, lift well, electrical panel and DG rooms etc

The general practice in the real estate sector that is used while selling property

If we talk about the NCR region then most of the builders use super area for calculating the cost of a property. But for buyers the built up area deal is the right deal.

Relation between loading and these areas

Loading is that proportionate common area that is added to the built-up area to get the super area. Many developers don’t declare the exact loading and mention vague figures like loading of 20 to 30 per cent and the buyer never comes to know how much extra he is paying on hidden loading. The buyers should see that the developer is mentioning an exact and firm loading irrespective of the size of the flat. Like in our case we maintain an exact loading of 20 per cent is maintained in all the sizes of the flats.

Disadvantages of buying on super area basis

The chances of overcharging and fleecing are more in this as it is only the developer and his architect who know the exact dimensions and thus there is no transparency for the buyer. So the customer can never imagine or challenge the disparity in the area booked and the area delivered to him.

Benefits of buying at built-up area basis

Anyone can easily measure it with just the help of a measuring tape and geometrical calculations. So the customer is sure that he will get what he is actually buying and he is paying for the area that he is actually going to use. So the pricing is more fair in such a case.

Green house
Revel in the colours of Summer
Amarjeet Batth

One of the main queries raised by gardening enthusiasts is about maintaining a perfect colour scheme in their garden. The choice of different flowers in flower beds, hedges, bushes and big and small trees all should create a pleasing visual effect. However, this is easier to achieve in case of flowers in flower beds, but is a tough task when one thinks of trees. This week we have chosen two trees that are not only easily available in the region but can also be planted in combination to highlight colour contrast in your garden or building courtyard especially in the summer months.

Cassia fistula (Amaltas) also known as Indian Laburnum and Lagerstroemia flos-reginae also called ‘Queens Flower’ dominate the landscape of gardens, public parks and roadside in the region as the scorching summer raises the temperature during May-June.

Amaltas is a hardy tree which sheds its leaves in March and produces strikingly beautiful, bright golden yellow long pendulous racemes in April end and early May. The tree is without leaves before flowering and does not provide the much needed shade during summer months as leaves appear only when the blooming period, which usually lasts for about four weeks, gets over. Thereafter, when the tree regains green leaves, the stray flowering which keeps on appearing till late rainy season gives a soothing effect.

Amaltas also spreads a pleasant fragrance in the early hours of the day. However, the golden yellow flowers need a contrasting hue to mellow down its stark effect. L. flos-reginae with dark green leaves and contrasting floral colour of mauve and pink provides the right contrast to the amaltas blooms. Its flowering time also synchronises with that of the amaltas making the colour contrast offered by the two tress a visual delight.

Amaltas is a mid-sized deciduous tree with a good spread. It should be planted in the background and L. flos-reginae being relatively smaller in size and having a compact growth with dark green leaves bearing mauve and pink flowering spikes, should be planted in the fore ground.

In order to get the right effect of colour one amaltas tree can be palnted in the background with two or three L. flos-reginae in the front. Alternatively, these can be planted in rows with Amatlas at a distance of 20-25 ft and L. flos-reginae at an interval of 15-20 feet. It should be kept in mind that since the colours are in contrast the total tree mass should be able to balance each other.

Upkeep

Both the tress are drought resistant. Dead and diseased branches should be removed in December-January to maintain the tree in a presentable condition.

Seed-producing pods of amaltas, however, should be removed periodically to maintain the floral glory of the tree.

No prominent pest attack is observed in both these trees except inflow of ants around the trunk of amatlas.

To enjoy a vibrant bloom, annual application of farmyard manure in December- January and dose of NPK in February-March is recommended.

market pulse
Prices stay stable in Delhi-NCR

Average housing prices remained stable in the national capital region (NCR) during January- March period compared with the previous quarter on low demand, according to real estate portal 99acres.com.

The report focuses on buying and rental price trends in residential real estate across seven major cities of India.

“Prices per square foot in Delhi-NCR region have remained unchanged in Q1-14 as compared to Q4-13. On the other hand, an annual comparison (Q1-14 with Q1-13) reflects no change in capital prices,” the portal said in a statement.

Average rental for three-bedroom flats also remained stable during the first quarter of 2014 calendar year against the year-ago period.

Commenting on the report, 99acres.com Business Head Vineet Singh said: “The real estate market across India is witnessing stability and Delhi-NCR region is no exception to it. The confluence of factors namely slowing GDP growth, higher costs of borrowing alongside the political uncertainty had taken its toll on the real estate landscape”.

Singh expected that developers would start launching their new projects with election process getting completed. “Pockets like Gurgaon and Noida which were witnessing scarcity of transactions will see deals happening in the coming six months,” he added. — PTI

vaastu wisdom
Health concerns in new home
Madan Gupta Spatu

Q. Ever since we have moved into our new home one or the other member is always unwell. Is it due to a Vaastu dosh? — Suruchi Taneja

A. Vaastu norms attain three Ps of life— Prosperity, Peace and Progress. Every house has one or other defect or dosh and many occupants who are unaware of this concept of Vaastu don’t really understand the reason behind prolonged illness of people living in that house. Some houses inherit disease due construction in wrong direction and many other Vaastu doshas which can be cured only with effective measures. Some ordinary but important tips you can check and follow:

• Every member should sleep with head towards south or east.
• Do not sit or sleep under an exposed beam.
• Face east or north while eating your meal.
• An ideal kitchen should be located in the south-east part of the house.
• Avoid having kitchen in north-east direction as it tends to create health problems for women in the house.
• North-east is corner for flowing water, so keep some source of water here.
• The south-west portion of the house should be ideally provided to elderly people or to the main owner of the house in order to keep them in good health.
• To have sound sleep, keep mobile phones and any other gadget away from bed. Keeping iron stuff beneath the bed creates health problems for people.
• Growing bamboo or rubber plants, in home is inauspicious, so avoid it and prefer tulsi, money plant etc.
• Do not keep exposed mirrors in home and cover all mirror including laptop screen and TV screen etc.
• Avoid constructing kitchen and toilet together.
• Space under the staircase should be used for storage but avoid making any usable place here such as kitchen, puja room or toilet etc.
• There should be no room or any other functional place over or below kitchen and toilet.
• Keep your bed three inches away from the wall.

tax tips
Tax to offset capital gain
S. C. Vasudeva

Q. Bathinda Development Authority had allotted a plot to me in November 2003. I intend to sell it now.

The details of cost and other expenses with regard to this plot are as follows:

• Date of allotment 23.11.2003
• Amount paid on total cost Rs 2,07,910
• Earth filling on plot as and where basis Rs 30,000 (don't possess receipt)
• Draft charges of bank Rs 542
• (i) Non construction fine upto April 2013 Rs 1,79,538 (ii) Non construction fine upto July 2014 Rs 25,160
• L.S. bank charges and other fees Rs 2,800
• Execution of registry in June 2013 Rs 1,20,000
• collect rate of Rs 12,000
• Other expenses of writing documents etc. Rs 6,000
• Total expenses (from Sl. II to Sl.viii) Rs 5,71,950 (2,07,910+30,000+542+1,79,538 +25,160+2,800+1,20,000+6,000)
• Selling price as agreed Rs 12,00,000

c) You can utilise the amount of short-term capital gain for the construction of the house after paying tax. You wouldnot be entitled to claim the benefit under Section 54F of the Income Tax Act.

Non-disclosure of plot sale

Q. I sold a HUDA plot that had been purchased for Rs 60,000 in 1997 and sold for Rs 9,21,000 in March 2009. I also paid to HUDA Rs 50,000 as non-construction charges on December 21, 2005. I re-purchased a plot in same year (July, 2009) before filing the return and plot for Rs 9,50,000 from HUDA. But I did not show it in my IT return of 2009-10. I am a housewife. How can now I modify my error. — Jyoti

A. On the basis of the facts given in the query you were liable to pay tax on the long-term capital gain arising on the sale of the plot. The purchase of another plot by utilising the amount of sale proceeds of the plot purchased in the year 1997 would not entitle you to claim the benefit of non-taxability of the long-term capital gain arising on the sale of such plot. Taking into the account, the cost inflation index for the financial year 1997-98 and for the financial year 2005-06, long-term capital gain of Rs 7,56,951 should have been declared and tax @20 per cent thereon plus applicable surcharge and education cess thereon should have been paid within the prescribed period. It is not possible to file the revised return for the assessment year 2009-10 at this stage. You may try your luck by filing a petition under Section 273A of the Act with the Commissioner of Income Tax for waiver of the penalty imposable for concealment of income after payment of the due tax along with interest for delay in making payment. The return for assessment year 2009-10 may be enclosed with the said petition with a request for the issuance of a direction to the assessing officer concerned to reopen the assessment for the assessment year 2009-10 in order to complete the assessment for the said assessment year.

How can I claim earnest money refund?

Q. An LIG flat was allotted to me in Master Gurbanta Singh Enclave probably in August 2006 by Improvement Trust Jalandhar for Rs 3,67,000. I had deposited a sum of ~18,000 as earnest money. I submitted an application for refund of earnest money within the prescribed date of withdrawal — two months from allotment date, along with a photocopy of the allotment letter.

According to the terms in the brochure, refund of earnest money is admissible after a deduction of 10 per cent of earnest money but I have not got any refund till now. I feel that the Improvement Trust should pay me interest at the rate of 15 per cent (vice versa) admissible to both parties. I have sent a number of requests for reviving my allotment of LIG flat and have expressed readiness to pay the balance amount along with interest of 15 per cent per annum. I have also sought the above mentioned information under the RTI Act, but no reply has been sent by the Improvement Trust. Kindly let me know what I should do in this case? — Rajender Kumar

A. You can adopt either or both of the alternatives:

a) File an appeal with the appellate authority under the RTI Act which will enable you to get a suitable reply from the Improvement Trust.

b) You can approach the consumer court for refund of the earnest money along with interest.

It may be very difficult for you to get allotment of the flat which you had declined earlier and sought the refund of the earnest money. The best way available to you is to seek the refund of the earnest money with interest which is refundable to you as per allotment letter after deduction of 10 per cent of the earnest money.

Tax liability on transfer of plot before possession

Q. I was allotted a plot in Gurgaon by HUDA in 2003. Some of the installments for this plot have been paid by me and some by my son and his wife. The possession of this plot has not been handed over as yet. HUDA allows change of name (transfer) before possession in blood relations. If I transfer the plot before possession to my son by 'change of name', then will it be taxable under the Income Tax Act? Do I have to pay stamp duty? — Sanjay Kapoor

A. A gift of property to a son is not taxable under the provisions of the Income Tax Act, 1961 (The Act). Therefore, any change in the ownership of plot in the records of HUDA in favour of your son would not attract any tax. Stamp duty is payable at the time of the execution of Conveyance Deed by HUDA in favour of the owner. There would be no question of payment of stamp duty if the change of name is made in the records of HUDA. Such change may, however, involve payment of some charges in accordance with the rules laid down by HUDA.

Email your queries to realestate@tribunemail.com