The Tribune, Chandigarh, India

	Smart call? Massive growth of urban population and shortage of 108 million residential units surely means that our cities need a new vision. Does the answer lie in the ambitious ‘100 smart cities’ plan? Geetu Vaid Though practically a move to bolster urban infrastructure and take the country towards international-level urban living standards, the announcement of 100 smart cities made in the maiden Budget of the Modi government has created quite a stir in the realty sector over the past two months. There are no two opinions about the fact that the challenges of urbanisation are staring most of our cities as according to reports 30 persons migrate from the rural belts to cities each minute. This has burdened the fragile civic infrastructure in urban centres making them more like slums than metros. With almost a third of the total population likely to be living in urban centres by 2022, India is going to need 500 new cities with strong civic infrastructure and organised growth. Coming in this backdrop the announcement looks very attractive and timely according to Industry mavens. “With increasing urbanisation and load on the land in rural areas, the Indian government has now realised the need for cities that can cope with the inherent challenges of urban living and also be magnets for investment to catalyse the local economies. The announcement of ‘100 smart cities’ falls in line with this vision”, says Anuj Puri, Chairman & Country Head, JLL India. But as they say the proof of the pudding lies in its taste, the success of this ambitious plan lies in the planning and execution short of which it will be nothing more than a catchy slogan. There are a number concerns that the government has to address soon to show its serious intent for making this massive project a reality. Some of these are: Money matters Though strategically it is a good initiative on the part of the government, funding will be the major challenge. “For each such city by conservative estimates an investment of Rs 1,000 crore would be required, so we are looking at funding of Rs 1,00,000 crore for this which is going to be a major issue”, says Dhirender Gaba, CMD, Fairwealth Group. The government’s initial allocation of 7,060 crore seems paltry at the moment. “How these funds will be generated and what will be the role played by the states and the developers’ lobby are some of the points on which the government has to show some clarity”, says Anil Mithas, CMD, Unnati Fortune Group. Need for clarity Another major area of concern is the absence of a definition of a smart city. The government has not provided a definition of a smart city yet. It is still evolving. In the absence of a definition, chances are that the industry and the consumers will not be aware of the concept properly. It is thus imperative that the government should first come out with the definition and concept. “On a practical basis, a smart city would be the one built with a robust and interactive information and communication technology infrastructure (ICT). Such a city will have an ICT infrastructure spread across the city with the command centre managing everyday services such as power distribution, water and solid waste management. The command centre will also be capable of controlling the traffic movement within city limits”, says Sachin Sandhir, MD, RICS South Asia. According to the definition provided at the RICS Cobra Conference last year, a smart city could be defined as a city which uses information and communications technology to ensure that both its critical infrastructure and public services and components are more interactive and efficient and that citizens can become more aware of them. RICS hosts the annual Cobra Conference, a key event for presenting and discussing the latest industry research. Clear policies The fundamental issues of availability of land and earmarking of the cities/areas/pockets to be brought under this ambitious project also has to be addressed. Land acquisition has been one of the major hurdles and cause of controversy in the expansion of several existing cities. A better regime to make land available for urbanisation will be first step to start the tread towards a smart future that the Modi government has visualised. “ The government will need to free up the land for such planned urban development and keep a check on land rates to encourage industries, developers, and people to invest in these cities”, says Gaba. Along with this a transparency in granting clearance to projects and a single-window-clearance regime will also smoothen the rough patches in the road towards “smart living”. “In this regard, the government needs to implement the recommendations of the Committee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)”, says Sandhir. The committee appointed by the Ministry of Housing and Urban Poverty Alleviation worked extensively during the period from April 2012 to January 2013 to understand issues and recommend corrective actions. According to the a White Paper on Smart Cities released byPHD Chamber and CRISIL bringing residents, investors and Industry to the new locations and the adoption of technology by end users will be another major challenge in a country like India. “The residential, commercial and public spaces of a city can be made sustainable by using technology, but the optimum utilisation of resources once the city is running remains in the hands of end users and their behaviour. Therefore the success of such a city depends on residents, entrepreneurs and visitors becoming actively involved”. The Concept Though the concept got popular in 2009, its genesis was the Smarter Planet initiative taken by IBM in 2008 under which the IT giant talked of IT tech enabled 'smarter cities'. South Korea, UAE and China have made major investments in this regard. Mechanics of a smart city A futuristic concept, it is a city with information technology as its principal infrastructure and the very basis for providing essential services to its residents. It involves a number of technological platforms, including automated sensor networks and data centres. Information and Communication Technology (ICT) is utilised to integrate various services via wireless networks to optimise utilisation of essential resources. Energy efficient buildings, automated waste disposal, traffic and catastrophe mangement systems are some of the aspects of a smart city. Global benchmarks * Smart City Vienna in Austria * Aarhus Smart City in Denmark * Amsterdam Smart City * Cairo Smart Village in Egypt * Dubai Smart City and Dubai Internet City in the UAE * Smart City Lyon in France * Smart City Málaga in Spain * Malta Smart City * The Songdo International Business District near Seoul, South Korea * Yokohama Smart City in Japan * Verona Smart City in Italy Smart Cities In India The cities that have ongoing or proposed smart cities include Kochi in Kerala, Ahmedabad in Gujarat, Aurangabad in Maharashtra, Manesar in Delhi NCR, Khushkera in Rajasthan, Krishnapatnam in Andhra Pradesh, Ponneri in Tamil Nadu and Tumkur in Karnataka.
	Need to usher in era of new construction methods Kishor Pate The paradigm for Indian real estate has changed drastically over the last decade. What was earlier a fairly straightforward — if lack lustre — equation has now transformed into a dynamic and self-sustaining landscape that brings its own unique opportunities and challenges with it. The questions being asked today by end-users, investors and even conscientious developers are very different from those of a decade ago. Some of these questions are — what drives the Indian real estate market? Who are its primary influencers? Who are the real beneficiaries? It all boils down to a simple question — is the Indian real estate market growing rationally and holistically? Inclusive growth in context of the Indian real estate market must necessarily mean that the benefits of growth in the sector must be spread over a wider palette. It is already happening, in the sense that the Indian Government’s heavy investments into infrastructure have created a much larger job market, which includes a wider variety of skilled and unskilled individuals. Today, a whole swath of industries are directly or indirectly involved in the India real estate story, with business being generated insurance, finance, transportation, construction and information technology. However, even today, there are many hurdles to the real estate sector’s growth. Archaic and counterproductive land laws prevent our cities from growing logically, and lack of awareness about the benefits of creative and environmentally friendly real estate development is still rampant. In a country reeling under an acute shortage of affordable housing, it makes sense to adopt methods that allow the supply pipeline to be augmented while simultaneously reduce the amount of waste created in the construction process by reducing, recycling and reusing materials. The clarion call for change has not gone unheard. Some of the leading developers in India are now engaged in a quest for innovative methods of delivering quality homes while reducing the environmental impact of the construction process. This involves finding and implementing new methods of cost-effective, eco-friendly, high-grade construction. The Alu-Form Construction This focus has logically led to an increasing adoption of technologies such as the Alu-Form construction process. This extremely progressive technology is a revolutionary innovation that allows for the speedy, accurate and highly consistent casting of all internal and external walls, columns, beams, floor slabs, stairs and other parts of a concrete building. It is an integrated system which merges the wall and slab panels into a seamless unit. With a drastic reduction of form-jointed sections, the end products have superior resilience to wear, tear and degradation. Using the building’s architectural blueprint as a guideline, highly resilient aluminium panels are pre-designed for all concrete elements of the building’s superstructure. Alu-Form technology allows internal electrical fittings and plumbing to be incorporated with a high degree of design efficiency, and as part of the overall building plan. This factor reduces the probability of electrical and plumbing failures. On the rare occasions when these do occur, such problems can be quickly isolated and fixed. This contributes to the overall cost-effectiveness of owning a home constructed with Alu-Form technology. Moreover, the use of this construction technology vastly reduces the chance of on-site mishaps, making it one of the safest systems for building construction currently available. Alu-Form construction technology involves extremely efficient, light-weight and flexible materials and cuts down on the need for messy brickwork, concrete leakage and the use of conventional, polluting construction equipment. It is, therefore, one of the most environmentally friendly construction techniques on the market Significantly, Alu-Form technology puts an end to the problems of construction irregularities and asymmetrical aesthetics which plague even the best of projects. The finished units are flawlessly balanced and streamlined, providing a finished and sophisticated look and feel. The basic equipment used in Alu-Form construction technology can be reused over up to 300 times, which means that there is significantly reduced wastage. The implied savings during the construction process can then be passed on to buyers into the finished product, making this construction technology one of the most viable means of delivering budget housing in our larger cities. Since it involves less skilled labour and conventional construction materials, it is ideally suited for the speedy completion of affordably priced homes. The adoption of this revolutionary construction technology is a vital step forward in making budget housing available within market-viable timelines. It will play an extremely important role in bringing India a step closer towards meeting its massive shortfall of affordable housing. It must be noted here that the use of such innovative construction technologies requires a consummate upgrading of the skills of construction artisans at the grassroots level so that they can understand the entire concept. Using alternate construction techniques without proper knowledge and instruction can result in compromised construction integrity, safety and project life-span. Challenges There is still a fair degree of resistance, both from developers and buyers, to projects built with alternate construction materials. While innovative construction techniques like Alu-Form construction in housing projects have become widely accepted and indeed popular, the Indian market’s acceptance of housing built with alternate construction materials is still quite low. In India, unlike in the more developed countries, there is still an erroneous assumption that the use of cost-effective alternate construction materials results in inferior structures. Knowing that a building has been built with anything but conventional materials and technologies cause potential buyers to have concerns about its safety, durability and resale value. This lack of awareness can result in a loss for developers who use them, since it would impact the marketability of their product. Alternate construction materials have, therefore, not yet become a very popular route among developers in India. The primary challenge lies in convincing buyers of the inherent value of such projects, and also to educate developers on the long-term business potential. There needs to be a greater level of awareness. Modular Housing Modular housing is yet another method that can be adopted by progressive Indian developers. When supported by the correct design, factory-built modular housing conforms to most standards of structural integrity, safety and environmental impact. This kind of construction involves the use of pre-manufactured components like roof and floor trusses that can be assembled quickly and with major savings on construction time and labour costs. Alternate construction materials Other ways of meeting the demand for cost-effective, yet environmentally friendly homes is through the use of alternate construction materials such as recycled fly ash (a waste by-product of coal combustion). This medium can be utilised to build budget housing of fairly high quality. Other alternate construction media are interlocking bricks, hollow concrete blocks, rubble filler blocks, stabilised mud-based blocks and funicular (or rope-like) shells. By using alternate construction materials and methods, construction costs can be reduced by a minimum of 10-15 per cent in terms of materials and up to 20 per cent in terms of skilled manpower expenses and construction time. — The writer is CMD, Amit Enterprises Housing Ltd.
	realty bites Earth infra to invest $100 million in urban projects Earth Infrastructures Ltd plans to invest around $100 million on a series of projects across urban planning and design. This was stated by Joint managing Directors of the group Avdhesh Goel and Rajnish Mittal post their Japan visit as part of Prime Minister NarendraModi’s delegation. The delegation during the Japan visit has explored a number of areas for investment and plans to get into business tie ups for the investment. “We had very fruitful discussions with Japanese industry leaders. We are in talks with many companies in the infrastructure sector and are expecting tie ups within the next 2-4 months. Our initial investment will be around $ 100 million. Many prominent corporate names such as PasonaInc and Sumitomo Corporation showed eagerness to expand their operations in India. We also met number of government representatives including Deputy Mayor of Kyoto and Mayor of Yokohama”, said Rajneesh Mittal. “The industries with whom we had our discussions ranged from organic farming, waste management, production of alternative energy such as solar energy and a number of technological collaboration for infrastructure investment,” Avdhesh Goel added. The delegation that visited Japan met over 100 organisations across sectors.
	Realty conclave to focus on housing issues Housing for all by 2022 was the focus of the two-day national real estate convention that was inaugurated in the national capital on Friday. Supported by the Ministries of Urban Development and Housing and Urban Poverty Alleviation, the event is be hosted by National Real Estate Development Council (NAREDCO) and also focused on a comprehensive roadmap to give a boost to the sector. Several Union ministers and Chief Ministers participated in a conclave focusing on the states. NAREDCO Chairman Navin Raheja and President Sunil Mantri presented the industry and home buyers’ perspective in the conclave. “We will also debate on targeting housing surplus within eight years by creating 90 million dwellings units and steps to meet capital inflow of USD 2 billion for housing alone,” said Mantri. NAREDCO will present national awards for achievers on the second day of the convention.
	Realty bites Decade of growth Indian real estate market witnessed a significant change in the last decade mainly backed by opening up of FDI in the sector and shift in preference to high-rises over traditional low-rise structures, according to a report. The opening up of the sector to foreign direct investment in 2005 initiated the entry of new avenues for funding, and capital inflow witnessed a spike, property consultant CBRE said in its report titled ‘Inflection Point: Ten years of organised real estate in India (2005–2014)’. Restrictive legislations till 2004 provided limited scope of funds for the sector. However, opening up of the sector to FDI in 2005 opened up new avenues for investment, it said. As per the report, the capital inflows into the sector witnessed a spike, especially in 2007 and 2008 when private equity investment was close to $ 14 billion. “The economy opened up for investments around 2005, which was instrumental in spurring broad-based fundamental growth across various sectors — accelerating consumption and heightening investment inflows,” CBRE South Asia Chairman and Managing Director Anshuman Magazine said. India’s housing landscape shifted from largely independent low-rise plotted developments to high-rise apartment complexes, mainly to meet the over increasing demand for homes, the report said. “Investment-grade office space formed the mainstay of the evolution of the organised real estate sector in the country, which witnessed a shift from traditional central business districts of leading cities across India to new peripheral/suburban business districts in the last decade,” it said. From a little over 90 million sq ft in 2005 to more than 400 million sq ft in 2014, country’s investment grade office stock has undergone a generational shift in its composition, structure and spread backed by the private sector as well as intervention by the government. The retail landscape also underwent significant changes over the last decade. “The period was marked by the rising popularity of malls among shoppers and retailers, as against the decline of major high streets. Going forward, technology and e-commerce will co-exist alongside malls and high streets in a comprehensive retail real estate eco-system,” Magazine said. — PTI
	real counsel Be aware of the pitfalls Prameet Narula An average home buyer may be getting loads of advice on how to deal with the developers. But the fact is that home buying doesn’t always mean that you will be dealing with developers. It is a given fact that the primary market is relatively smaller in size as compared to the secondary market. This is a market which defies all conventions of economic wisdom and very often is at the mercy of profit-hungry investors. Since circle rates in the major Indian cities are way below the actual transaction price in the market, the component of black money is all too pervasive in this market. Unfortunately, it is not clear how the Real Estate Regulator Bill will regulate the secondary market. Can there be any regulation for properties on the resale market where transactions are happening with the mutual consent of the buyer and the seller? Secondary market nevertheless attracts a significant number of transactions and as per a rough estimate nearly two third home buyers buy an apartment from the secondary market. The 2013 Supreme Court ruling on the general Power of Attorneys (POA) is the only step in recent times that promises to check the rampant use of corrupt practices in the secondary property market. Hence, buyer awareness is very important in this market. Though all the checklists needed in the primary market are very much applicable here as well, the secondary market home buyers should additionally also inspect the house and verify the condition of plumbing, electrical, woodwork etc. It would be better if the buyer could get the home inspected by a professional valuer, some of whom are even empanelled with banks and other financial institutions. In addition to inspecting the natural wear and tear they should also check for any structural damages, before purchasing an old home. Sachin Sandhir, Managing Director, South Asia of RICS asserts that in primary market buyers end up paying a ‘holding charge’ of Rs 5-7 per sq. ft in cases where possession has not been taken on time. Buyers are further affected by lopsided contracts, as most BBA’s (Builder Buyer Agreements) provide developers with the flexibility of effecting suitable (so-called) alterations in the layout plan, as and when found necessary. Such alterations may include change in the area, layout plan, floor, block, number of said flats and increase in the area of the said unit, which, in effect, raises the total cost for buyers. “When buying a property from the secondary market, it is extremely helpful to get an idea of the prevailing capital values of listed properties from property portals, which are available in abundance these days. However, consultation with a real estate agent or broker to arrive at an informal price is a relatively simple method to check the availability and compare properties, which is still by-far one of the most popular mediums of information collation used by prospective home buyers,” says Sandhir. Rattan Hawelia, Chairman of Hawelia Group admits that secondary market needs more check points than the primary market. He says in case of first sales, the basic selling price is set by the developer for all apartment units and it acts as a benchmark. Any price negotiation may be done based on the level of buyers’ interest in the project, current unsold inventory, current market conditions, payment terms, etc. While in case of secondary market, the asking rate for an individual apartment may just reflect the expectation of the seller and may only be broadly in line with the prevailing market rate. “Legal vetting of the documents is essential to ensure that the titles are clear and there are no encumbrances on the property, while such risks remain limited in case of first sale from the developer. Hence, purchases from secondary market remain riskier than direct purchases from developers. Furthermore, the cash component in the secondary market is high since the seller usually wants to avoid paying capital gain tax and stamp duty,” says Hawelia. Secondary market has certain benefits since you get what you see, added to no hidden cost but there are some important aspects that buyers must check before finalising on their purchase decisions for resale properties, some of which include: * Registration: Checking the registration of property and ensuring that all documents relating to property are available. * Establish a clear property title: Ensure property is free from disputes and ensure that the purchase is made from the ‘real owner’ or the person who has the right to sell the property. * Building Approvals: While purchasing a resale property, ensure that the building has been constructed as per the plans and layout approved by authorities. * Ensure that the seller has the certificate of completion, occupancy and NOC (No Objection Certificate) from the respective authorities. * Check whether the property is still under mortgage. If so, check on the status of the debt and whether the property has been approved by the authorities for which all taxes and other duties/levies such as stamp duty and registration charges etc. have been duly paid. Checklist If the resale property being purchased is in a registered co-operative/group housing society, some of the additional documentation that will be required includes: * Original share certificate of the Society. * Allotment letter from the Society in the name of the buyer. * Copy of the lease deed, if executed. * Copy of order under the Urban Land ceiling Act. * Copy of the building plans sanctioned by the competent authority. * Commencement certificate granted by Corporation/Local Authority * Certificate of the registration of the society. * Copy of the bylaws of the society. * No-objection certificate (NOC) from the society. * Copy of NA permission for the land from the collector. — The writer is Analyst, Track2Realty
	project watch Possessions handed over Techman Buildwell has started handing over possession of 112 units in Tower B of offers possession of Phase -1 of Moti Residency at Raj Nagar Extension, Ghaziabad. The builder has already handed over 156 units (Tower A and C) in the project. According to company spokesperson the last and fourth tower (D) of Phase 1 was likely to be ready for possession by Diwali. The project is located at Motra Village, Raj Nagar Extension which is just off NH-48 and offers two and one BHK flats. The company plans to begin construction of second phase shortly and it consist of over 400 units of 2 & 3 BHK options in varied sizes available for the basic price of Rs 3000 per sq. ft.
	national prism: pune Affordable destinations Dhanori and Charoli offer affordable options Location is everything in real estate — and never more so than in Pune, which is among India’s most exciting and active housing markets. Pune has not only emerged as an IT-driven hotbed but also a powerhouse of manufacturing activity, even as the excellent education and healthcare institutes in the city consolidate its reputation as the most preferred City To Live In. Naturally, Pune’s real estate market is in a boom phase which shows no signs of slowing down. The challenge for property investors who want to make a fortune in this city lies in finding the right location among the confusing array of options. The areas that have seen the highest appreciation in previous years (such as Kalyaninagar, Vimannagar, Kharadi, Koregaon Park and Magarpatta) are by now either over-priced, almost saturated or both. Price appreciation has slowed down in these locations after peaking out at very high levels, making these virtually unaffordable for mid-income home buyers and retail investors alike. The time has once again come to widen the search net for areas that are still at the cusp of their growth trajectory. Emerging destinations Luckily, Pune is a growing city that delivers new investment hotspots with remarkable regularity. With IT / ITeS and manufacturing still remaining the key drivers for property investment success in Pune, investors now need to identify locations that benefit from both while still being on the first lap of their growth cycle. Two such areas are Dhanori and Charoli. Dhanori in East Pune began its rise to prominence only a few years back. Apart from its proximity to the large industries and IT/ITeS firms located at Yerwada, Vishrantwadi, Kalyani Nagar and Kharadi, it also had the advantage of being close to the Pune Airport and having sufficient availability of land. By now, the area is already in a fairly advanced stage of development. Despite the fact that Dhanori enjoys good connectivity and access to the necessities of modern life, the entry points for property investment still remain attractive. Dhanori still has good availability of options in the mid-income homes bracket, and demand is predominantly driven by end-users. Dhanori’s growth will also be helped by the coming of Pune’s much-awaited Ring Road, from which it stands to benefit directly. Charoli in the Northern part of Pune is another location that has been attracting investor interest for various reasons. Firstly, it is located a mere 6 kilometres from the Pune Airport. Before emerging as an economic microcosm in its own right, proximity to the airport was the most important trigger for the real estate boom on Nagar Road. Like Dhanori, Charoli too benefited from being close to this key transport hub, which plays an important role in keeping the gears of almost every industry in Pune — Information Technology, manufacturing, retail and healthcare — well oiled. Also, Pune Airport is a massive employment generator in its own right. Charoli is seeing an upsurge in property demand because it is advantageously located along the planned 170-kilometre Ring Road around Pune and Pimpri Chinchwad. The connectivity that this road will provide to inter-connectivity to various workplace and logistics hubs will ensure that real estate growth in Charoli will be considerable over the next few years. The arrival of a massive 400+ acre township in this key location is also serving as a big profile boost to Charoli. Property investments in these two locations are going to bring in very satisfactory returns to those who have managed to catch the best entry point. The demand for homes in Dhanori and Charoli is set to rise exponentially over the next five years, providing the assurance of both high appreciation in base property values and sustained rental income. — Inputs by Arvind Jain, Managing Director, Pride Group. (The article is for general information only. The Tribune Real Estate does not recommend any developer or project. Buyers are advised to check all credentials for making safe investments)
	Home front Tackle termites Often wrongly referred to as ‘white ants’, there is a lot about termites that most people are not aware of. Termites are, in fact, more closely related to cockroaches and have been on earth for over 250 million years. They are regarded as detrivores, or detritus feeders. They feed on dead plants and trees as well as dead parts of living trees, including wood and wood in the soil. Their ability to work unnoticed can lead you to be off your guard, but termites have a proven reputation for the vast devastation they are capable of causing in households. There is a very methodical manner in which termites go about their business, starting from the formation of colonies. And once a termite infestation has been identified, it can be difficult to determine how long the colony has been established in the home. Classified into three groups – Damp wood Termites, Dry wood Termites and Subterranean Termites, they cause damage worth billions of dollars’ each year by eating away at the wood in homes, from roofs down to the foundations. The most destructive of the three are the Subterranean Termites that are capable of severely damaging timber within a house in just three months. These termites form their homes in the soil where they are structured into colonies comprising king, queen, workers and soldiers. Through tunnel, they look for a food source and the moment they have access, there is no limit to the scale of damage they are capable of causing. Here are some simple measures you can adopt in safeguarding your home from these destructive creatures. 1. Eliminating moisture is a good start. * It is, therefore, essential to repair any leaking pipes, shower recesses or rusty downpipes. * Regular cleaning and maintenance of gutters will also ensure their proper and smooth functioning which will divert water away from the foundation. * Get rid of stagnant water on the roof 2. Many of us are in the habit of storing wood and paper within our homes. It is best to get rid of any loose timber around the property. If it is necessary to store firewood, newspapers etc, these should be stored at a safe distance from your house. 3. It is also important to have a professional concrete contractor check the foundation for any cracks and get them fixed right away. This will prove effective in blocking termite access to your home. 4. The most vulnerable areas of wooden furniture are the sides that are fixed to the wall and are not visible to us on a daily basis e.g. * The side of wall units / wardrobes / cupboards / cabinets that are directly in touch with the wall. * Lower area cupboards / wardrobe shelves that are just above the flooring. * Wooden frames of doors and windows that are fixed into the wall. 5. Use of effective anti-termite solutions like Terminator can also help eradicate termite infestation. Besides its efficiency, it does not have any toxic formulation making it an eco-friendly product. 6. It is also a good preventive measure to regularly check for mud tunnels or other signs of possible activity such as hollow timber or damp walls. Also, having your home undergo a termite inspection is a good preventive measure against large-scale termite infestation. 7. If you come across a termite colony, never attempt to get rid of it yourself as termites have the ability to quickly relocate to some other part of your home. It is best to contact a licensed pest controller immediately in order to adopt the best form of eradication. It is important that such areas are pre treated with sufficient quantity of an anti termite solution so that termite attacks are prevented. — With inputs from Punit Mehra, Sr. Vice President, Sales & Marketing, Pidilite Industries Ltd.
	Green house A splash of colour Amarjeet Singh Baath ... A number of gardening enthusiasts prefer shrubs as these provide a splash of myriad hues through their colourful foliage and flowers. This is what makes shrubs an important component in public or home gardens. These not only fill the gap between ground cover and trees with their colourful foliage and flowers but also provide a lot of flexibility to the overall landscaping of the green space as these can be trained to the desired height and form. Shrubs from different geographical regions flower all year round in the climate of our region. Some such shrubs include: Galphimia - yellow; Hamelia patens, Lantana indica and Jatropha pandurifolia - red; Murraya exotica, Tabernaemontana divaricata - white; Plumbago capensis - blue; Tecoma gaudichaudi - yellow; Thevetia peruviana -yellow, light orange. Flowering shrubs have to be planted considering their colour scheme either in contrast or in harmony. Deciduous shrubs should be grouped with evergreen shrubs so that during the leaf-shedding period the given patch should not give a barren look. Number of each kind of shrub in a group will determine the height and spread of the shrub. The shrubs require round the year training for having desired effect in garden landscape. To makes these shrubs look more illustrious, it is important to apply mild doses of NPK 20:20:20 in Sept- Oct at 30-40 grams per plant. To maintain the plant height and spread Dec- Jan is the appropriate time for pruning. Water logging should be avoided and regular observation for any pest attack is desirable. The crown levels of the above groups can be changed which depends on the creativity of the landscaper, but overall it should give good visual effect. These shrubs even when planted singly as specimen make their presence felt. There are few climbers that can also be trained as shrubs. These include Gmelina hystrix, Petrea volubilis , Jasminum samboc (moghra, motiya), bougainvillea. Flowering pattern of some seasonal shrubs * Euphoriba pulcherrima (Nov- Feb) * Hibiscus rosa-sinensis (Mar- Dec) * Ixora coccinea (Mar - Oct ) * Mussaenda philippica (Mar - Jun) * Gmelina hystrix (Apr - Aug) * Jasminum samboc (Apr - Aug) * Lagerstroemia indica (Apr - Aug) * Golden Duranta (Apr - Aug) Colourful combinations * Jatropa (low level), Plumbago, Single Chandani * Hamelia , Single Chandani (same height) * Tecoma (gaudichaudi), Double Chandani (same height) * Hamelia, Plumbago (variable) * Galphemia, Durranta, Murraya, Plumbago (variable) * Golden Duranta (low level) * Hamelia, Lantan (low level)
	tax tips S. C. Vasudeva email your queries to realestate@tribunemail.com Can I claim refund of LTCG tax? Q.I have a query regarding the sale of residential property and rules regarding re-investing in purchase of another residential unit with the sale proceeds. On March 12, 2013 I sold my apartment in Bangalore. I had a choice to use the proceeds for investing in another residential unit but as we had our own apartment in Gurgaon (where we are living at the moment), we decided to pay the long-term capital gain tax accruing from the sale in F.Y. 2012-2013. Now we are planning to buy a second home, most likely in Dehradun, as an investment for our settling there after my retirement. Is it possible, funds permitting that is, to buy a ready-to-move residential unit within F.Y. 2014-2015 and then to re-calculate our tax liability under long-term capital gain on the sale of the Bangalore residence? We would still be within the mandated two-year period for re-investing the proceeds (or profits) in purchase of a residential property? Do the IT rules permit such a reversal of decision of an assesse within the mandated two-year period and refund the excess LTCG? We could be looking at an Income Tax Refund (excess LTCG Paid) to the tune of Rs 20 lakh. — Inder Kapoor A.The following facts emerge from the query * The apartment in Bangalore was sold on March 12, 2013 * The relevant capital gain arising on the sale of the apartment in Bangalore was declared in the return for the assessment year 2013-14 and the tax arising thereon was paid. * You intend to revise the return for the assessment year 2013-14 so as to claim the exemption of capital gain from taxability which was declared for assessment year 2013-14. The claim is intended to be made by utilising the aforesaid amount of capital gain for buying a readymade house in Dehradun before March 12, 2015 i.e. within two years after the sale of the apartment in Bangalore. On the basis of the above facts, it is possible to revise the Income-tax return for assessment year 2013-14 by March 31, 2015. However, the difficulty with regard to the exemption of capital gain under Section 54 of the Income Tax Act 1961 (The Act) may arise as the amount of capital gain arising on the sale of Bangalore apartment had not been deposited in a bank account under capital gain scheme, which requirement has been included in the aforesaid Section so as to prove that the assessee intends to utilise the amount of capital gain for the purchase/ construction of a new house and is unable to do so before the date of filing the income-tax return for the financial year in which the capital gain arose. In a few cases, the Hon’ble Tribunal has held that this requirement of deposit under Section 54 of the Act is procedural and therefore, in case the intentions to utilise the capital gain for the purposes of purchase or construction of a new house are evident from the circumstances, the exemption claimed by the assessee should not be denied. In the present case, however, such intentions are not proved as the facts given above prove that as on the date of filing the tax return for assessment year 2013-14 you had no intention to avail the exemption under Section 54 of the Act. The claim if made, will definitely involve litigation which would be costly as well as time consuming. The chances of success in this case seem to be doubtful in my opinion.
	Can my brother contest legal Will Q.My deceased father left behind a registered Will according to which my elder brother has been given his due share of ancestral property and thereafter debarred. Further all remaining property, agricultural land has to be divided equally between me and my two younger sisters. I have been given a residential house that had been built jointly by my father and me with clause that the house would remain with my mother till she is alive and thereafter I will be the sole owner. My elder brother (Bedakhal — debarred legally) is asking that his son wants a share from this house under Dada lahi i.e. share from grandfather’s property. Plus my brother is asking for equal share in our father’s land, on the basis that the Will was unfair and not acceptable to him. Please advise how do we free the stake not due to him? Does he have any legal claim? — Reet Mohinder A.Your queries are replied hereunder: * On the basis of the facts given in the query it seems your brother has no legal right to claim any share in the properties which have not been bequeathed to him by your father. Therefore, he cannot claim any share for his son and share in the properties that have been bequeathed to the other legal heirs. * The claim may not be legally admissible but he can always go to the court and contest of the Will. It would, therefore, be in the interest of the family to involve elders so as to settle the matters amicably. The litigation involved in the process can be costly and time consuming.
	Right way to get a GPA from NRI son Q.My son is an NRI and had booked a residential flat in Noida (UP), the possession of which will be offered by the developer shortly. My son will not be able to come to India for signing possession related documents and subsequently for signing the Sale Deed/Conveyance Deed with revenue authority. My son will be visiting India in the third week of August. Can my son execute Power of Attorney in my favour in the office of Sub Registrar Bathinda, Punjab authorising me to sign all papers for the above said purpose? I am permanent resident of Bathinda and also own property there. My son’s passport has permanent address of our Bathinda residence. Will the above POA be valid for signing the documents in the office of the developer and subsequently with Sub Registrar Noida? If the papers are captioned as General Power of Attorney (GPA), without mentioning the details of property at Noida, will it serve the purpose for Noida Property and for that matter anywhere in India? The idea is to avoid multiple preparation of POA, if my son acquires another property elsewhere. The format of POA provided by the developer contains the details of property at Noida and it mentions the NRIs must prepare the papers at embassy of the country where he works and subsequently get the same stamped in India with the Registrar. — Krishan Dev Uppal A.The format of Power of Attorney provided by the developer is of a ‘Special Power of Attorney’ authorising you to get the registration of the property done in favour of your son on the basis of the said Special Power of Attorney. On the basis of facts explained in the query, it would be advisable to get a General Power of Attorney executed in your favour at Bathinda which should be duly registered with Sub-Registrar’s office. Such a Power of Attorney would authorise you to carry out all the acts which your son could have done. One of the clauses in such a Power of Attorney would authorise you to deal with all the properties owned by your son in India and appear before the authorities for getting the same registered in favour of your son. You may seek the advice of an Advocate for the execution of such a Power of Attorney.
	Property depreciation Q.If I own a residential apartment and rent it out, will this property qualify for depreciation as if it is a business income? — Yogesh A.A letting out of property may not qualify for the allowance of depreciation under Section 32 of the Act. However, if an assessee can prove that he is carrying on real estate business and letting out is part of the said business, it may be possible to claim that such letting out being in the process of carrying of business of real estate, the income from letting out be considered as part of the business income. Therefore, the depreciation is allowed.
	The matter of address Q.My father had movable and immovable property at Pathankot. He had made a Registered Will in my name. He was more than 80 years old at that time and had come to me in Delhi for his care in old age. Unfortunately, he expired last year and was cremated in Delhi itself. At the time of cremation the address of my father given was of Delhi i.e. my present address. Would this create legal complications as the Will was registered at Pathankot and the address given is of Delhi at the time of his death? Kindly let me know how I should proceed in the matter so that I may get my father’s assets without any hassles? — Surinder Singh A.The fact that your father executed the Will at Pathankot and he died later at Delhi and that the death certificate shows his address at Delhi should not make any difference with regard to the authenticity of the Will. I do hope that the Will stands registered with the Sub-Registrar at Pathankot. The moveable assets should be transferred in your name on the basis of the Will without any problem. For immovable properties, the mutation should ordinarily be possible on the basis of the registered Will and affidavits from the other legal heirs. You have not indicated the nature of the moveable assets, therefore, it is not possible to clarify with regard to each of the moveable assets left behind by your father. In case such assets are specified in the Will, their transfer in your name may not cause any problem.
	Victoria Memorial inspires new residential project Recreating the nostalgic magic of the bygone era, a new residential project is now being built in Kolkata on the lines of the iconic Victoria Memorial's facade. A joint venture between the Das family that owns the land near B T Road in Noapara, and real estate major Jain Group, the 'Dream Victoria' premium housing project's facade, arches and columns would be reminiscent of Victoria Memorial. "The architecture would be aimed at recreating how old Calcutta looked like in the days of the 'Bhadralok' culture. Victoria Memorial is the best structure symbolic of those days so our project would also be reminiscent of the monument," Jain Group's executive director Rishi Jain told PTI. He said the building's facade would be made of white marble and its arches would also be designed on the lines of the Indo-Gothic architecture, whose construction was completed in 1921. Having a built-up area of more than 3,30,000 sq feet, the project is expected to be ready in the next 3-4 years at an investment of over Rs 80 crore. It will have more than 200 flats. Jain said white marble pillars would guard each corner of the building while the pathways, water body and the garden would also be in the Victorian style. Designed by British architect William Emerson, Victoria Memorial's structure is a mix of British and Mughal elements as well as incorporates Venetian, Egyptian, Deccani and Islamic architectural influences. — PTI
	loan zone Deal without OC Deo Shankar Tripathi Q.I’m interested in a resale flat — 1 year old building. People in this building have started taking possession of the flats. The occupation certificate has been applied for by the builder as stated by agent. Would loan be possible in absence of an OC? What would be the implications in case loan is possible but there is a delay in getting OC from builder especially in view of the Campa Cola incident? Sometime back I had read an article in paper that states the SC has ruled possession of flat without OC as illegal. — Raghav Chanana A.Generally, the OC or Occupancy Certificate for a building is granted post issuance of a BCC or Building Completion Certificate, which certifies that the building is indeed complete in all respects. There are different verification procedures conducted by the authority to certify the fitness for occupancy of the particular building. In instances where the application for an OC has been made by the developer, but is pending due to some administrative process, the loan can be granted on two preconditions – * that the BCC is in order and * that any adverse remarks on the project have been verified by a competent authority.
	Can I get loan for DC converted plot? Q.What is DC conversion? Do nationalised banks offer loans for DC converted plots? — Suresh Kumar A.DC Conversion is a legal process to change the use of land from agricultural to residential use. This change process is approved by a competent revenue authority — the District Collector (DC) or District Commissioner. It is a mandatory requirement to enable residential use of the land as it helps the government assess the tax status of the occupant / owner in terms of deriving it as a ‘revenue generator’ or ‘fixed asset’. DC converted sites are usually eligible for housing loans from banks and housing finance companies. Moreover, as per the current norms, DC conversion requires that the layout plan is approved by a town planning authority to ensure that adequate space has been allocated for roads, parks and other amenities as stipulated. Without this approval, DC does not provide the conversion order.
	Are title and search documents mandatory? Q.Is it mandatory to provide title and search document, even if the builder is having APF with the bank? He has already submitted 35 years title and search report for the complete project and property. I am about to take the disbursement of my loan and the executive is asking just because the builder has got categorised ‘C’ in APF profile. Please assist and help me to get correct information. — Jivan Singh A.After the launch of a project, the builder should approach the bank and get clearance for loan approvals. The bank will check all the documents involved and if they are satisfied with the project, they will give an APF no (Approved Project Financial No) for that project. The APF number will be different for different banks for the same project. The presence of APF number indicates that the particular project meets all the eligibility criteria for getting loans and has no legal problems as for as the bank is concerned. There is no need to submit the title documents if the builder has APF with the bank. The very purpose of APF is to get the project approved up-front so that there is no need to verify project papers with the same bank for retail loans. A search may be required to ensure that there is no multiple funding on the same unit.
	CIBIL score and loan eligibility Q.If I have not taken any kind of loan in my whole life, then will it have any impact on my CIBIL score? — Raman Kumar A.CIBIL score is very important in the loan approval process. The credit score helps loan providers quickly determine, who they would like to evaluate further to provide credit. The CIBIL Score ranges from 300 to 900. Our data indicates that loan providers prefer a credit scores which are greater than 750. Once the loan provider has decided which set of loan applicants to evaluate, it analyses the CIR in order to determine the applicant’s eligibility. Eligibility basically means the applicant’s ability to take additional debt and repay additional outflows given their current commitments. Post completion of these first two steps the loan provider will request for the applicants income proof and other relevant documents in order to finally sanction the loan. CIBIL score is not impacted if you have not taken any loans in the past. However, it is advisable to build up a good credit history to have good credit score. — Readers’ queries are answered by the expert on The Tribune Real Estate panel. Dep Shankar Tripathi is President & Chief Operating Officer, DHFL.