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| REAL ESTATE |
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Global Realty Clamouring for
waste Prohibited zone? Demolition drive
against unauthorised colonies Property
exhibition abroad Bricks go grey Useful fly-ash House on top
Confusion on
Park Street
Official decree has brought the growth of hotels in the heart of McLeodganj to a halt.
As a result of migration due to security scenario in rural areas across Kashmir, over 10,000 residential houses have come up in different colonies across the municipal limits of the city.
— Photo by writer
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Security amidst volatility Investing in realty is a safer option than buying shares, opines R. Suryamurthy As the BSE Sensex performed ‘samba dance’ to the tune of the ‘bear’ and the ‘bull’ pressure, many questions were raised as to what are the safe and less volatile investment options. Questions were also asked whether the real estate market, which has witnessed a quantum jump in the past couple of years, would undergo some kind of correction. The prices of residential, retail and commercial, even in smaller cities across the country have witnessed exponential growth in recent months. Huge funds being allocated for the infrastructural growth of the country and economy growth projection of 8 per cent could not immunise the real estate stocks from tumbling on Black Monday. Some of the large-cap real estate stocks such as Mahindra Gesco and Ansal Properties fell by almost 50 per cent from their peak levels. Mahindra Gesco, which had touched a peak of Rs 1,300 on 18 May, closed at Rs 699.25 on Monday while Ansal has fallen from a high of Rs 1,626 on 9 May to Rs 845.7 on May 22. Other stocks like Unitech and Lok Housing did not fall much — since they hit the filter on a 5 per cent movement. BF Utilities was another stock that had soared — since the company had some interest in property. The stock, which rose by almost 266 times in under two years has fallen by 5 per cent in the past three sessions. IPOs may lose sheen Analysts note that the meltdown may take away some shine from the forthcoming real estate IPOs — the DLF Group and Parsvnath. They said a falling market could impact the timing and pricing of the IPOs. However, the bear run has not dampened the spirits as half a dozen developers are in queue to go public, with DLF leading the sweepstakes with an approximate Rs 13,000 crore issue for only a 12 per cent float. Analysts say that in the next three months, prospective market debutantes will marshal nearly Rs 30,000 crore in the sector. Anshuman Magazine , India managing director of real estate broker CB Richard Ellis Group Inc said the fundamentals are strong and the confidence level in the real estate market is still good. He said investors take a long-term view while entering this market. Real estate is a tangible asset unlike scripts, which are held on short-term for speculation. “There would be some correction, but it is very hard to state when it would happen,” he said. Non-metro cities Some industry players feel that there are pockets of Tier II and Tier III cities in North India, which have seen massive escalation of price over the last six to 12 months, which may not be sustainable in the long run. Whether the stock market meltdown triggers a correction in these markets remains to be seen. On the whole, rising real estate prices may take a breather in certain pockets but there will be no holding them back across the board, they say. A PricewaterhouseCooper’s report says the venture capital fund flow in the sector could touch $7 to 8 billion over the next 18 to 30 months. The US alone is said to have committed $2 billion for Indian real estate. Consultancy firm Cushman& Wakefield study says urban India alone requires 12 million housing units with scope for 400 townships in 5 years across 30-35 cities, each with a five lakh population. Today, real estate is giving 20-50 per cent returns, up from 15-20 per cent a few months ago. So, anyone who can afford it, is parking his money in this asset class,” says a property consultant. Prices of homes in India have on average tripled in the last two years and will probably expand fourfold in the next three to four years, they said. According to a Deutsche Bank study “Building Up India” around $850 million additional capital was invested into Indian real estate in 2005, much of it as lending by commercial banks to the sector. Private property companies and individuals’ holdings of real estate also grew by 40 per cent year-on-year. With huge amounts being raised this year, it is very likely that 2006 too will see a high growth. Growth in the housing market, too, should continue despite higher interest rates, because mortgage debt as a percentage of the GDP is only 5 per cent, very low by international standards. Real estate benefits in either case – whether the Sensex booms or tumbles. The profits booked in scripts are invested in real estate as a safe investment and when the stocks tumble, investments are diverted to real estate to square off losses.
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Realty funds norms soon The Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds In India (AMFI) are working together towards forming guidelines and regulations for real estate funds. “This would pave the way for fund houses to launch schemes for investing in the real estate sector,” AMFI Chairman A P Kurian said in Mumbai. Talking to reporters on the sidelines of a conference, he said since there were many factors to it, this would take time for the market regulator to come out with final guidelines. Since real estate, like gold, is not a security, SEBI regulations had to be amended before allowing mutual funds to launch real estate scheme. However, he did not mention any time-frame. “Yield from the real estate sector often outstrips the return from the stock market. The initiative is intended to benefit small investors,” Mr Kurian added.
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Cartels gain at buyer’s cost
With property giving much higher returns, those with money to spare are joining hands to form consortiums, says Ruchika M. Khanna
The most basic of human necessities — housing — is no longer available for the common man. Blame it on the unrealistic boom in real estate market, or the inability of the government to intervene with the market forces, very few persons can now afford to own their dream house. Sample this. A three-bedroom flat in Manimajra (a suburb of Chandigarh) is being offered for Rs 1. 25 crore, while a one kanal plot is on offer between Rs 2 crore and 2.50 crore. Zirakpur, a small town on the outskirts of Chandigarh, has become the new boom town, even though it has virtually no civic amenities. The cost of a flat here varies between Rs 30 lakh and Rs 45 lakh, and a 10 marla plot for anything between Rs 20 lakh and Rs 70 lakh. It is not just Delhi and Chandigarh main and satellite towns that are witnessing the unrealistic hike. Buying property in cities like Amritsar, Jalandhar and Ludhiana, too, is no longer within the reach of a common man; leave alone a salaried upper-middle class person. A one kanal plot in the posh Ranjit Avenue of Amritsar is available for anything between Rs 70 and Rs 80 lakh, while the cost of a 10 marla plot varies between Rs 30 lakh and Rs 50 lakh. In the neighbouring district of Jalandhar, the cost of land per acre within the municipal limits varies between Rs 1 crore and Rs 3 crore, and outside the municipal limits between Rs 50 lakh and Rs 1.50 crore. In the posh Model Town area of Jalandhar, a 10 marla plot is available for Rs 40 and Rs 50 lakh. “There has been an almost 200 per cent increase in real estate prices in the past three years. After Chandigarh and its peripheral towns of Panchkula, Mohali and Zirakpur, Jalandhar has seen a boom in the real estate market. A large number of colonies are now being carved on the outskirts of the city,” Anil Chopra, Chairman of Punjab Colonisers and Builders Association, says. Despite the price hike, there has been no let up in the transaction of property, even though most purchases are being made by property cartels. Those dealing in property business say that this boom is artificially created with financiers pumping in money in real estate, thus jacking up prices. But with property giving much higher and quicker returns than gold, or even investment in shares and bonds, those with a few lakhs to spare are joining hands to form consortiums, which are now dealing in more than 50 per cent of the transactions taking place in the northern region. “Businessmen, doctors, exporters, agriculturists and government officials — anybody with extra lakhs to spare is forming a cartel and investing in property, for a short-term gain. Within days of a deal being struck, the property is sold off after making a neat profit. Because of the artificial hike created by these cartels, the sufferer is the end consumer, who is being forced to shell out these impractical prices,” Dr Jaspal Singh Sidhu, Dean Agriculture, Khalsa College, Amritsar, says. The consortiums being formed have anything between four and 10 members. It is because of these consortiums that the property prices have gone up by 100 to 300 per cent in most of the cities of Punjab, and in the National Capital Region. “Ours is a welfare state, and it is high time that the government steps in to ensure that the “black money” is not invested in property to create an artificial hike. Scrutiny of incomes of these persons should be conducted, and the government should ensure that the notified collectorate rate is followed for transactions,” Jalandhar-based social activist Lakhbir Singh says. Interestingly, though the property dealers insist that transactions are being made at these exorbitant prices, they fail to explain why the above quoted prices are not applicable in case one is selling the property. Their only explanation is that cartels of property dealers, too, are trying to buy property at low rates, and sell these later by making a whopping profit. |
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Clamouring for waste
Pact and notification benefits two major players while smaller consumers wait for their share of fly-ash, reports Kiran Deep from Ropar
The demand for the fly-ash waste released from the 1,260-MW capacity Guru Gobind Singh Super Thermal plant (GGSSTP), Ropar, is on the rise for the first time due to its use in cement plants already set up in the region and those coming up in Himachal Pradesh. The supply of fly-ash to the cement plants is free of cost as per the notification of the Ministry of Environment. However as the thermal plant authorities have already entered into an agreement with the two cement plants at Ropar and Bilaspur to supply most of its fly-ash, there is little scope for others plants to collect the byproduct till 2009. In 2005-2006, the thermal plant used 6.29 million tonnes coal and produced 21 lakh tonnes of ash. Out of this nearly 9.38 lakh tonnes was supplied to the Gujarat Ambuja Cement Limited (GACL) plant, 6.74 lakh tonnes to the ACC plant. Besides it, the thermal plant authorities had also signed an agreement to supply pond ash to Jai Parkash cement plant to be commissioned in December 2006 situated in Himachal. Besides the waste, the ash mixed with water is dumped in the ash pond. Amidst the murmur and allegation of monopoly, such is the paucity of fly-ash now that new and smaller players have agreed to lift ash from the ponds. This implies that new cement plants to come up in the region will have to install refining machinery to get fly-ash of desired quality. Even the cement plant to be commissioned in Solan in Himachal in December has agreed to lift the ash from the ash ponds for further use. The thermal plant situated in Ganauli, nearly 10 km from here, is of much importance for Punjab as it generates 300 lakh units everyday and contributes 30 per cent power supply in the total power production of the state. Tonnes of ash released from the six units of 210 MW thermal plants had posed a serious threat to the environment and villagers living in its vicinity. The problem that arose from the power generation in the thermal plant was that ash yield in the process of combustion was 34 per cent of the coal used. Ash emitted from the plant created health hazard, agricultural pollution, and air pollution in the villages situated in the vicinity. During the last few years, Gujarat Ambuja Cement Limited (GACL) plant located in the vicinity of thermal plant and the ACC plant situated in Barmana turned out to be major consumer of fly-ash, giving a hope to reduce the ash pollution. About 90 per cent of fly-ash waste produced in the thermal plant is being used by these two cement plants, according to the thermal plant officials. Even after the disposal of the fly-ash to the cement plants, nearly 4 to 5 lakh tonnes of ash gets dumped in the ash pond every year. So far, a total of 26.33 million tonnes of ash has been dumped in the three dumping grounds spread over 394 hectares since the commissioning of the thermal plant here. The Deputy Chief Engineer (Civil) and in-charge of ash pond, Mr S.C Chabba, said that as per the agreement with Ambuja and ACC signed in 1998 they had been supplying 100 per cent fly-ash generated to these two plants. As per the notification issued by the Ministry of Environment, fly-ash is to be supplied free of cost till 15 years according to the agreement. “The notification will expire in 2009 and thereafter we will review the decision to supply fly-ash to various cement plant,” he said. The General Manager of the thermal plant, Mr. N.K Arora, said that pollution has been controlled to a large extent because much of the fly-ash waste is now being used by the cement plants. “To solve the problem of the pond ash, we had signed an agreement with Jai Parkash cement coming up in Barmana in Bilaspur district of Himachal. In the first year of commissioning, the cement plant would lift 4 lakh tonnes every year and 8 to 10 lakh tonnes subsequently,” he added. |
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Prohibited zone?
Land mafia in Gurgaon has not even spared the ammunition depot’s vicinity, says Ravi S.Singh
Land mafia and those who are allegedly linked to a few political leaders have erected thousands of structures in the prohibited zone of 900 metre around the outer walls of the ammunition depot. The worst part is that illegal constructions continue to come up even now in the area. The Administrator, HUDA, Gurgaon Circle, Mr S.P. Gupta, also said that there were complaints of fresh constructions within the prohibited area. The law says that no permanent structure can come within the sensitive area. The idea behind it is to insulate the high-security establishment from any mishap and also to minimise civilian risk if tragedy occurs. Part of the arms and ammunition of the defence has been stocked in it. Going by the tragedy striking other depots in the country, the scenario is considered by many to be scary. But real estate business in any form has become so lucrative that the miscreants seem to be hardly having any scruples about endangering lives or the nation’s security. The added danger is unidentified persons purchase land and sites here, which makes the defence establishment vulnerable. According to many, illegal growth around the ammunition depot encapsules the worst form of unholy nexus of a section of the officialdom, the land mafia and the political leaders to perpetuate the corruption. The general feeling is that the depot pertains to the Defence and safety and security of the nation. Hence, the Air Force Station here and personnel cannot wash their hands away from the incongruity. The office of the Administrative Officer of the Station is located right at the centre where the incongruities have been taking place. The incumbent Administrative Officer declined to make any comments on the anomaly on ground that the national headquarters was the competent authority for it. Even though he agreed to a request to take his superior into confidence so that official comment could be had, he evaded several telephone calls later on. However, his predecessor, Mr R.K.Mishra, several months back had lamented at the illegal growths around the depot and had also taken up the issue with the then Deputy Commissioner, Gurgaon, Mr Sudhir Rajpal. There was a joint meeting between Mr Sudhir Rajpal, Mr Mishra and the personnel of District Town and Country Planning (Enforcement). However, nothing tangible happened on ground and the structures continue. The scale of illegal constructions in the prohibited zone is mind-boggling. Even more stunning is the fact that apart from grabbing land at a prime location, the miscreants were running commercial ventures and earning crores. Banquet halls, marble business, hotels,etc are aplenty dotting the Mata road. Unauthorised colonies like Rajiv Nagar, Sanjay Gram, Sheetla Colony already exist. Thousands of residential accommodation and shops have come up in them. While some of the area in the prohibited zone falls under the local Municipal Committee, other parts fall under the jurisdictions of the HUDA and the District Town and Country Planning (Enforcement) for action. Recently, a squad from the committee had visited Sanjay Gram. But the members faced stiff resistance, including a Concillor of the Municipal Council, who was leading the angry mob of protesters. A few days back, the District Town and Planning (Enforcement) had demolished structures, which was part of an attempt to set up an illegal colony between Palam Vihar and Sector 5.The bid was to set up a colony on about six acres of land. The miscreants are alleged to be making fresh bid to set up the colony. Some residential houses have also come up in it. A few months back a known land scamster of the city was in thick of setting up illegal colony opposite Maruti Udyog’s main gate. The gentleman illegally purchased land of about seven acres, demarcated plots on it and sold them to public. Mr S.P. Gupta said that many of those who own illegal structures have already moved the court and the issue as been locked in litigation. However, he said that a fresh survey was being done in the area. Incidentally, Mr Gupta is the Chairman of the five-member Committee, constituted by the government on the orders of the Punjab and Haryana High Court for monitoring and taking action against illegal structures and poaching of land in Gurgaon. According to many, these miscreants have a modus operandi. First they set up innocuous looking structure. After some time they start construction and then full-fledged construction comes up. Whenever there is a hue and cry, they stop the construction, only to commence their activities at a convenient time. When the construction is complete they move the court when threatened with administrative action. However, the general impression is that the officials collude to allow the illegal structures come up. Then to prove their bonafides they make a show of serving notices and causing demolition. A list of cases studies suggests that it is all a sham to allow and provide the miscreants an opportunity to move the court, get stay order and allow them to stay in peace on the pretext that the matter is sub judice. The overwhelming opinion is that the authorities must demolish the structures without serving notice and stop setting up the structures in the prohibited zone. |
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Demolition drive against
unauthorised colonies In the recent years, some private real estate developers and colonisers have adopted the practice of buying agricultural land on the outskirts of Hisar and sell it in small chunks in the form of residential plots. They mostly form housing societies to hoodwink the government. The practice is more prevalent on the Gangwa Road, Kaimri Road, Tosham Road and in the areas surrounding the Hansi township of Hisar district. While the authorities concerned repeatedly caution the people against buying plots in unapproved colonies, yet the attraction of getting a bigger plot at reasonable price makes the people take the risk. At the time of selling plots, colonisers present a rosy picture before the prospective buyers for luring them into investing money. However, many a times, there is no provision even for the basic amenities like water-supply and sewerage lines, let alone other facilities promised to be “available in near future”. Eventually, colonisers make a lot of money by selling plots at inflated prices. On the other hand, persons who invest their hard-earned money in purchasing these plots have to face multifarious problems. Since thee colonies are unauthorised, plot holders live under the threat of demolition drive which can take place any moment. They also face difficulties in getting ration cards and power and water connections. The residents of these colonies usually find some political figure to get such things done for them. With a view to having a loyal vote bank, many politicians promise regularisation. On coming to power, several such leaders manage to get these colonies approved and thus, the rot continues. Colonisers also cite the example of such colonies to woo more customers. Even the state governments are left with no alternative but to regularise colonies, which have been developed above a certain level. On the other hand, government officials entrusted with the job of razing the illegal structures also have their own set of problems. The Enforcement Wing of the Town Planning Department is responsible for demolishing unauthorised settlements. However, the department has to seek concurrence and active support of various other departments, as a result of which the demolition drives are not as frequent as they ought to be in the given situation. Apart from the procedural hurdles and bureaucratic tangles, political pressures and legal obstacles also come in the way of smooth functioning of the department. Then, like any other government department, rampant corruption also stands in the way of proper functioning and prompt action on complaints. On being contacted in this regard, HUDA Administrator C.R. Rana, maintained that the buyers should not be lured by the tall claims of colonisers and buy plots in only those areas, which have been duly approved by the government. The District Town Planner, Mr S.S. Chauhan, asserted that a demolition drive was being launched by the department and many unauthorised colonies around the city and near Hansi township would be razed. |
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Property exhibition abroad
The Confederation of Real Estate Developers’ Association of India (CREDAI) will organise “Property 2006” exhibitions at London and Dubai in association with the Maharashtra Chamber of Housing Industry (MCHI). The 3rd Indian Real Estate & Housing Finance Exhibition will be held in London from May 27 to 29, 2006 at Earls Court, Olympia and the 5th Indian Real Estate & Housing Finance Exhibition at Dubai will take place from June 1 to 3, 2006 at Dubai Renaissance Hotel. The exhibition, which aims at attracting investments from NRIs and other foreign investors to explore the vast opportunities and wide range of housing and commercial options available in the Indian real estate industry. In Dubai, last year, this was the biggest-ever official property exhibition, with participation from 69 Developers and four home finance companies. Visitor turnout was more than 15,000 persons over the three-day period of the exhibition. Mr Ramani Sastri, President, CREDAI said: “NRIs today are one of the most powerful and affluent class in the global economic scenario and we are glad to provide these interactive platforms, through our exhibitions that will help them invest in real estate in India. Every year these exhibitions are providing better opportunities and opening bigger horizons.” Through successive years, the exhibition has grown steadily.
— TNS |
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Bricks go grey
Some people hit adversities right across the face. It is because of just a handful of such entrepreneurs that the definition of a few products undergoes a phenomenal metamorphosis. A case to the point is Ajay Manrai, a Chandigarh-based entrepreneur, who has changed the very definition of brick. To put the matters straight, brick is not red for Ajay. It is grey because instead of baking red clay bricks in conventional way, he uses a combination of fly-ash, lime and gypsum to roll out grey ones. Called FaLGy bricks, such bricks have water absorption capacity between 7 and 11 per cent thereby preventing dampness and efforescence. “Though the cost of FalGy bricks is a bit higher (nearly Rs 300 odd per truck) yet in the long run they prove to be cheaper as such bricks help save work and plaster cost by as much as 25 per cent,” he says. “Even the brick machines were designed indigenously at a cost of Rs 10 lakh each,” Ajay, a mechanical engineering degree holder, says. “These bricks, being smooth, help in speedy construction, accurate finish and better insulation. They also exert less static load on the structure,” he points out. The going, however, has not been so smooth for this Chandigarh lad, who started this venture in 1997. “When we went commercial, we had to cut through the red tape. Our unit was put under the ‘red category’ by the pollution control board. Production was stopped and it took a lot of convincing to tell the government officials that the fly-ash is being used in a constructive way, which is otherwise an ecological menace.” Ajay says that the biggest problem they face is that of procurement of fly-ash. “Fly-ash is not available at the Ropar thermal plant. We have to go off as far as Panipat to fetch this,” he discloses. “Lime is sourced from Jodhpur and gypsum, locally,” he tells. Behaviour of a few clients also amuses Ajay. “Some people just don’t buy FalGy bricks because of the mindset that bricks are always red. They cannot accept the fact that bricks can be grey,” he says. Ironically, while India is slowly awakening to FalGy bricks, global MNCs, like Quark, have already placed mega orders with him. Such a list of ‘awakened’ foreign clients is long, according to him. |
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Useful fly-ash
Top experts are of the opinion that fly-ash can be used at many places to conserve natural resources. “Post World War II, during the reconstruction phase, fly-ash blocks were used effectively as building material in the USA ,” says M.S. Jaggi, Additional Director (Env), Punjab State Council for Science and Technology, Chandigarh. “The product is not being harnessed properly in India,” he points out. The Punjab Government had recommended the use fly-ash along embankments to the Railways during the construction of Chandigarh-Morinda rail track. “Lots of soil was dug from the countryside, thereby making fields vulnerable to other ecological hazards but the Railways did not heed to the advice,” he rues. He points out that the notification asking cement makers to use fly-ash has “snowballed” to some extent. “Cement manufacturers are now adapting monopolistic attitude. They seek a particular grade of fly-ash but all this requires the right quantity of electrostatic precipitators at the thermal plants.” |
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House on top
Penthouses become the latest fad, finds out Pradeep Sharma
The apartments with the state-of-the-art facilities are a passé. Penthouse, the byword for luxurious living, is the new rage in Zirakpur, the fastest growing township of Punjab. If you are rich and can spend any amount between Rs 50 and 65 lakh, then the township is the right place to buy a dream home. In fact, penthouses seem to have caught the fancy with at least three major real estate developers coming up with these.
The Silver City Construction Limited, the developers of the Silver City and Silver City Extension on the Chandigarh-Ambala highway, took a lead in this direction. It has come up with the penthouses in its latest housing ventures — Silver City Greens and Silver City Heights. Situated on the fifth and sixth floors, the penthouse boasts of the state-of-the-art facilities, including four bedrooms, drawing-cum-dinning room, lobbies, family gym and home theatre room and independent terrace. A small family swimming pool would be the added attraction of the penthouse spread over an area of about 3,246 square feet on both floors in the Silver City Greens. “The construction of the penthouses is an attempt to bring world class living to Zirakpur for the elite class,” Sunil Bandha, Silver City General Manager, said. Another land developer, Orbit Apartment Construction Private Limited, is offering a penthouse, with five-bedroom duplex apartment with an area of 3,341 square feet on the Ambala-Chandigarh highway. Another major promoter — NK Sharma Enterprises — is reportedly offering a pent house on the VIP road at some distance from the highway. About the targeted clientele, NK Sharma, a prominent builder says that the NRIs and the IT professional and businessmen were the sections, the builders were targeting. Observers feel that with the prices of the apartments touching a new high, the penthouses offered a new way of luxurious living. If the covered area and array of facilities is taken into account, the cost per penthouse is not prohibitive, says a coloniser. Inquiries reveal that a majority of the penthouses had been booked by the prospective buyers. Some of the buyers had reportedly booked the penthouses for investment purposes in the wake of the four-laning of the Zirakpur-Ambala highway, which would cut the distance between Chandigarh and Ambala. |
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Penthouse project in Ludhiana Furnished flats, a concept that Ludhiana has been alien to so far, would soon be a reality with Deepak Builders taking up development of a luxury housing project here. To be named Crosswinds, the project involves 93 furnished flats and six penthouses in a society spread over 1.5 acres to be located opposite the Lodhi Club here. “Analysing the market, we realised that with a lot of multinationals setting up business here, such a facility was lacking. People who come for work from other cities look for facilities as well as security, which one does not normally get in independent houses. Then there is a section of people who cannot afford heavy investments required to buy independent
kothis. At the same time, they do not want to go in for small flats in far-off locations. The concept that has been popular primarily in metros so far, is likely to be received well here too,” says Mr Deepak
Singal, CEO of the group. He says corporates and NRIs are likely to be the key customers for furnished flats. Explaining the project, he said there would be two, three and four bedroom flats and penthouses in the society that would be constructed over seven floors, along with basement and parking levels. While flats would be constructed in an area of 1,800 to 3,000 square feet, construction area of penthouses would be 4,000 square feet. Each penthouse would have a separate splash pool and terrace garden, said Mr
Singal. Deepak Buildcon Infrastructure, the company which is a part of Deepak Builders and has undertaken the development, would invest over Rs 50 crore towards the project. |
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Green house
Ground-cover plants have changed the concept of horticultural landscaping, writes Satish Narula
The most difficult part of the home garden to plan and decorate is the outside-the-house garden. Left unattended, it becomes a source of trouble. The area becomes no man’s land and a common place for garbage disposal, malba disposal and a breeding place for insects and obnoxious weeds. It becomes a resting place for the passerby, rickshaw-pullers and strangers who also use the place for easing themselves, much to the embarrassment of the house owner. Use of planting, fencing, grassing etc. no doubt amounts to encroachment but to keep the place free from all nuisances one can decorate by the use of ground-cover plants or stones and pebbles leaving at least three feet clearance on the berm from the road as passage for the pavement users. Use of ground cover plants has changed the concepts in horticultural landscaping. It has become handier for the gardeners to decorate the outside of the home gardens in an effective way. It is very difficult to maintain such areas due to the repeated assaults by various departments, who in the name of correcting the faults repeatedly dig trenches leaving behind nothing. The feature creation with ground cover plants under such situations comes handy. The plants are quick to grow and even give effect overnight. Most of the time, we make the mistake of planting a tree outside the
berm. At the time of planting, we do not take into consideration the potential height and spread of the tree. This results in interfering with the overhead lines. The tree branches are repeatedly clipped by the electricity department resulting in lopsided growth and imbalance. Such trees are prone to fall. Faulty pruning causes the irregularly cut ends of the branches open to borer attack that weakens the tree from within. Most of the time the owner, unmindful of the direction, plants the trees and then wants to clip them in winter to get sun and wants growth during summer to get cool effect. Do not consider the tree to be an umbrella to close and shut at will but plant it with planning only. Never also plant fruit trees outside, you may end up receiving stones from urchins. Making hedges outside is another common feature but it also becomes a problem when uprooted. Moreover, high hedges on the berm of corner houses make it a blind curve, prone to accidents. There is a wide range of ground cover plants available to choose from. Such plants have the quality to take the pruning well and regain form and colour. Foremost in the list are various duranta species; the golden
duranta, the ordinary green and the variegated duranta. This is grown in combination with dark-coloured
Iresin. While using such plants, maintenance is an important factor. If you miss cutting the plants, take high growth that leads to hollow base and remember the bad features catches the eye first. Iresin needs careful handling as the plant dies at the top especially during winter giving it a bad look. For this do not let the plants grow for more than four to six inches. Water frequently. Cauphia is another plant that can be used as border plant or hedge. It takes clipping very well and forms any desired shape. Other plants that are used are chlorophytum (spider plant),
tradescantia, pilea, dwarf amaranths, buddleia, blue bird etceteras. With imagination you can use Junipers prostrate (trailing type) too. |
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Confusion on
Park Street
Dealers’ versions vary on number and dimensions of shops sold in Sonepat, finds out Vishal Joshi Owing to different versions over the exact number and total shops sold at an upcoming private shopping plaza at Sonepat, buyers are confused. Taneja Developers and Infrastructure Limited (TDI) is offering commercial units at an upcoming plaza, Park Street, in Sonepat along the GT Road. The project is spread over a large chunk of the prime land adjacent to the Devi Lal Park. According to the TDI officials, there are a total of 200 commercial units. However, the officials refused to divulge the total number falling under different categories. TDI is offering shops in three categories — 500, 800 and 1,000 sq feet areas in the multi-storeyed complex. Priced at Rs 4,500 per sq ft for the ground floor, the units would cost Rs 3,500 for the first floor. One has to shell out Rs 2,700 per sq feet to book a unit for second floor in the upcoming plaza. Possession would be given to the buyers after two and a half year later, said the dealers. Interestingly, the authorised booking agents also refused to give details about the total number of plots and left over plots under different sizes. According to the TDI representatives at New Delhi, the company has sold the units to the agents who are now selling it further in the open market. The representative clarified that the company does not entertain direct bookings for the project hence the agents were solely responsible for the same. When contacted several authorised dealers gave varying pictures on the total number. Though one such agent claimed that there were a total of 100 units, another said that there were 200 units. One of the agents said that all units measuring 500 sq ft had been sold out whereas another rubbished the claim. While the former booking agent claimed that all units under the segment were sold out during the last three days, another dealer claimed that the booking for the same was still on. |
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Land prices jump in McLeodganj
Enough scope for quality hotels to come up in Dharamkot and Bhagsu, says Vibhor Mohan
McLeodganj and adjoining areas of Bhagsu, Naddi and Dharampur offer massive potential for prospective hotel and restaurant owners to tap the perennial flow of tourists to the area. The key is breaking away from the run-of-the-mill by offering theme-based services to the clients, who find most hotels in the area lacking in ambience and tasteful cuisine. Presently, stepping into a restaurant or hotel in McLeodganj is no better than going to any other in its neighbourhood. As Vikas Labru, district tourism officer, puts it: “It is all about holding back the tourists for a couple of days. To achieve this, hotels would need to be more innovative. Holding fun events and setting up amusement parks is one option that could be tried to begin with.” He agrees that there is a dearth of quality hotels in the area, what to talk of spa resorts. If one thinks of the high-end tourists, only a couple of hotels would meet the checklist. The rest are all just the same offering nothing special. Even in case of restaurants, he adds, there is need to follow a theme and plan the ambience and the architecture accordingly so that the tourist gets a bit more than food and scenic environs. In case of hotels, offering separate huts to tourists has paid off well in some place and could be replicated here so that the well off tourists have something to look forward to. The twin conditions of the Town and Country Planning Department applicable for the core area in McLeodganj, requiring a minimum area of 1,000 square meters for setting up a hotel and ban on change of land use has brought growth of hotels in the heart of the tourist spot to a halt. There is, however, enough room for quality hotels in the adjoining areas of Dharamkot and Bhagsu, where prime land touching the road is available at around Rs 1 lakh per 20 square meters. The land prices in lower McLeodganj, close to the Khada Danda road are comparatively cheaper and a 400 square meter plot can be had for Rs 10 to 13 lakh. “Even in the main McLeodganj market, land is available for prospective restaurant owners but the prices have increased manifold ever since Kashmiris have based themselves here, hiring even small, congested accommodations for up to Rs 35,000 per month,” says Ratan Singh, owner of Novalty Food Joint. The hotel and restaurant owners have their own reasons for offering mediocrity. “The tourists coming to McLeodganj don’t want to loosen their purse strings. Making investment of over Rs 3 crore would be a bad bargain, going by the rate of return in the area,” says a hotel owner. Mr Vijay Karan Singh, owner of Pong View hotel on the Cantonment Road, adds that quality tourists coming to Dharamsala and McLeodganj were only a small percentage of the total crowd. “Most tourists want the cheapest room in the hotel and are willing to compromise on services. That is why most hotels in the area have not more than a dozen rooms and are hesitant to innovate,” he says. The absence of a broad gauge rail line to Dharamsala and airstrip for only eight-seater planes is a big drawback. “High-end tourists from Delhi don’t like to take up a 12 hour journey by road to Dharamsala and the administration should work on rail and air connectivity,” he says. Deputy Commissioner Bharat Khera says any investor from outside can apply for purchase of land in the district by getting an essentiality certificate from the tourism department and putting up the case, with an affidavit from the seller, before the district administration, which in turn forwards it to the state government. “The procedure has been simplified and the forms and the checklist of documents can be downloaded from the net,” he says. The existing hotel owners also need to focus on their marketing if they are to attract quality Indian and foreign tourists, who would prefer to have a reservation before they arrive here from Delhi.
Substitute for mall
A viewpoint would soon come up in McLeodganj so that tourists get a picturesque view of the Dhauladhar range. Located close to the Surya hotel, it will be the ideal place to hang around during sunsets to see the hills with a crimson background. And for tourists who complain McLeodganj is the only tourist destination without a mall, the district administration has decided to construct to multi-storey parking on the entry points and run a no-vehicle zone through the heart of McLeodganj, so that tourists can walk at leisure through the narrow streets. |
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Lopsided growth in Valley
Colonies mushroom around Srinagar, points out Ehsan Fazili
With the growing trend of migration of educated class from rural areas, lacking basic civic amenities especially good education and health care, there has been an enormous growth of residential colonies in Srinagar, summer capital of Jammu and Kashmir. During the last five years, the population here has grown from 10 lakh to over 13.5 lakh while the sanitation system lies at the same position where it stood about two decades ago catering to a population of about 8 lakh. The migration has also been as a result of the security scenario in rural areas across Kashmir, leading to migration of many residents to the main town with their government jobs and some of them in search of employment in the private sector. As a result of this, over 10,000 residential houses have come up in different colonies across the municipal limits of the city over the past 16 years of violence. Many colonies have come up without legal formalities, which are later being regularised by the government departments concerned. The migration and construction of houses in this urban centre has led to the expansion of the municipal limits of the city from 216 square km to the present 314 square km. Thus, this growing trend has put an additional burden leading to a virtual breaking down of the civic amenities here. “We are generating 550 metric tonnes of garbage every day out of which only 285 metric tonnes are being disposed off,” said an official on the condition of anonymity. The remaining 265 metric tonnes are getting piled up at different places, mostly the water bodies leading to drastic environmental degradation. According to Mr Ghulam Mustafa, Mayor of the Srinagar Municipal Corporation (SMC), “everybody has a right… and we cannot stop anybody from settling here” but laments that different departments do not cooperate. He pointed out that the District Development Board, Srinagar, had decided to hand over various departments to the SMC but it was yet to be implemented. Even the Srinagar Development Authority (SDA) that provides land for the planned establishment of residential colonies was not playing its role, lamented the Mayor. The SDA caters to about 10 per cent of the available land within the municipal limits. “The work to provide basic civic amenities suffers due to the want of proper planning,” the Mayor lamented adding that it burdened the state exchequer. “If there is a coordination between different departments, there would be less involvement of funds”, he added. Mr Ghulam Mustafa is the first ever Mayor of the SMC, who took over in March last year. The two capital cities of Srinagar and Jammu were upgraded as Municipal Corporations by the state government in 2000, and the first elections to civic bodies were held after a gap of 27 years early last year. Though the population has increased and basic system to provide civic amenities remained the same, there is a hope for the revival and expansion of the system with the ADB assistance of over $5 million. |
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Estate
talk Pradeep Sharma Motia Group, the developers of the mega housing project Royal Estate at Zirakpur on the Chandigarh-Ambala highway, will soon come up with the state-of-the-art designer apartments in Sector 20, Panchkula. To be spread over an area of 17.5 acres, the centrally air-conditioned 900 apartments will offer international living experience to higher income group. “We will offer prospective buyers’ spacious three bedroom home spread over 2,000 feet,” Managing Director of Motia Construction Limited, Mr Pawan Bansal, told The Tribune. Motia Group, which created a record of sorts by becoming the first private builder to hold a draw of lots for its 860 dwelling units at the Royal Estate in Zirakpur, is on an expansion and diversification spree. Housing projects in Baddi and Dera Bassi and two schools in Mani Majra are already in the pipeline. However, the group is not yet venturing into the commercial segments like shopping malls. “Our primary strength is the housing sector and we are committed to provide “housing to all” at affordable price. The facilities at the existing housing projects include Royal Estate, Motia Heights, Motia Township and Motia Homez at Zirakpur, Motia Highway and Motia Diamond at Kharar. Motia Marvel at Ludhiana and Royal Estate at Nabha are being augmented besides new projects. Mr Bansal says that in the era of cut-throat competition, locational advantage would be the deciding factor. Besides the cost factor, convenient approach to the housing project would prove to be the deciding factor in the success of any housing project. |
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TAX
tips By S.C. Vasudeva Q. I am a retired government servant and a senior citizen. Recently, I sold some of my ancestral agricultural land for Rs 15 lakh. Would there be any tax liability on this amount. If yes, then of how much? — B.L. Manjula Sharma A. As per the provisions of Act, agricultural land, which is not an urban agricultural land, meaning “it does not fall within the jurisdiction of a municipality or a cantonment board” is not a capital asset. Accordingly, the capital gain earned on the sale of agricultural land of the aforesaid category is not chargeable to tax. You need to determine whether the land that has been sold by you is within the jurisdiction of a municipality or not to ascertain the taxability of the capital gain. The amount of tax liability can be determined after this basic fact is ascertained. Calculate gains
Q. I was allotted an industrial shed by HSIDC at Faridabad on November 18, 1992 for Rs.7 lakh for which I made payment in two instalments, i.e. Rs.2 lakh on November 18, 1992 and Rs 5 lakh on March 15, 1995. Due to certain problems, I could not use this shed so I sold it on February 15, 2005 for Rs 15 lakh. For capital gain purposes, I got it valued as follows. As on 18.11.1992 Land: Rs 5.67 lakh Shed: Rs 1.33 lakh Total: Rs 7 lakh As on 15.02.2005 Land: Rs 13.22 lakh Shed: Rs 1.78 lakh Total: Rs 15 lakh My question is how this income is taxable and whether I can claim long-term capital gain. — Vijay Jindal, Ludhiana A. You should get the details of the cost from HSIDC because it is the cost price which is to be indexed for the purpose of ascertaining the amount of the capital gain. The cost price of the shed will be multiplied by the cost inflation index (CIF) for 2004-05 and divided by the CIF for financial year 1992-93. The relevant CIF figures are as under: 1992-93 223 2004-05 480 The indexed cost so ascertained will be deductible from the sale price. The balance will be the long-term capital gain.
Selling off booth
Q: I had a commercial booth in Sector 22, Chandigarh, on a 99-year leasehold basis for the past 18 years. It was in my, my wife and my daughter’s name. Now, I have sold it and while taking the no-objection certificate, I cleared the pending ground rent dues, interest, electricity dues etc. amounting to about 1,65,000. Eighteen years ago, I had purchased it for Rs 2.5 lakh and now it has been sold for 13 lakh. How do I calculate my Capital Gains Tax? — Varun Singla, Panchkula A. You have not indicated the exact year of purchase of the commercial booth, which is essential for the purpose of calculating the long-term capital gain. On the basis of the “18 years” period referred by you in your query, if it is presumed that the booth was purchased in the financial year 1987-88, the CIF for 1987-88 would be 150. The CIF for 2005-06 being 497, Rs 2.5 lakh will have to be increased by the fraction of 497/150. The indexed cost on the said basis would work out at Rs 8,28,333 and the long-term capital gain would be Rs.4,71,667.
Section 80C
Q. I am repaying housing loan of Rs 10,000 per year on self-occupied property. I have been allotted flat for which I have paid Rs 60,000 during the current financial year on account of repayment of principal amount. The possession of the flat has not yet been received. Kindly confirm, whether I am eligible for rebate of Rs 70,000 under Section 80C. If not then can I claim rebate for Rs 60,000. — Pritam Singh A. Section 80C of the Income-Tax Act, 1961, (The Act) provides that any sum paid towards the repayment of the principal amount borrowed by the assessee from any of the following sources is allowable as deduction, subject, however, to a total limit of Rs l lakh under the aforesaid section: 1. The Central Government or any State Government, or 2. Any bank, including a co-operative bank, or 3. The Life Insurance Corporation, or 4. The National Housing Bank, or 5. Any public company formed and registered in India with the main object of carrying on the business of providing long term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under Clause (viii) of Sub-Section (12) of Section 36, or 6. Any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or 7. The assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or 8. The assessee’s employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society. You would therefore be entitled to a deduction of Rs.60,000 repaid during the current financial year towards the principal amount against your total income in case you have borrowed the amount from any of the above sources.
Renovation
Q. My wife and brother jointly purchased a low lying piece of land in October 1989 for Rs.50,000 with equal contribution. They spent Rs 50,000 in December 1989 for its development viz. filling, boundary wall, outside drains etc. In August 2005 they sold the plot and got two drafts of Rs 3,90,000 each separately in their names. 1.What capital gain accrues to each of them? 2. My brother spent Rs.1.5 lakh on the renovation of his house (replacement of major portion) during June 2005 till now. He did not keep the receipts for the purchase of accessories except labour: What should he do to justify the total cost so spent? How much he should spend on his house to save tax? Does he need to invest some amount in tax saving bonds like REC, Nabard etc.? 3. My wife does not have any house in her name. We have a plot of 400 yards in our joint name. Can she construct a residential house in her portion (50 per cent) for purposes of tax? How much she should spend on this house to save tax? What is the time limit for such construction? Should the entire amount of Rs 3,90,000 or only Capital gain amount be kept in the bank in a separate account? If so, what is that? Can it be kept as fixed deposit in the bank? — N.P. Bhatnagar A. The amount of capital gain will have to be worked out by indexing the cost price of the land. Since the total cost is Rs.1 lakh, the cost of one half share of land would be Rs.50,000. The CIF for 1989-90 being Rs.172 and CIF for 2005-06 being 497, the indexed cost would be Rs 50,000 x 497 / 172 = Rs 1,44,477. The long term capital gain on the said basis would work out at Rs 2,45,523 in case of your wife on which she will be assessable to tax. She can invest this amount of capital gain in the construction of the house. The amount will have to be spent on such construction within three years of the date of sale of the land. The unspent amount as on March 31, 2006 will have to be deposited in a separate bank account to be opened under capital gains scheme. The capital gain earned on the sale of land by your brother would be exempt from tax if the same were used for the acquisition/construction of a house within the specified period. The exemption is not available for renovations. The exemption would be available in case your brother adds another floor to the existing house. In case your brother is not interested in adding another floor, he can invest the capital gains in the purchase of specified bonds to save the capital gains tax. |
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Buzz
on Bourses New Delhi: The government is planning to set up 25 integrated textile parks with an aim to enhance the competitiveness of the textile industry. The Indian textile and apparel industry has a potential to grow to $85 billion by 2007, Textiles Minister Shankersinh Vaghela said while addressing the first International Fashion Technology Forum, 2006 here today. Of this, domestic market would be $45 billion while exports were estimated to touch 40 billion dollars, he said. The government was taking various steps to create a congenial environment by reduction in cost of production, rationalisation of excise duty structure and removing infrastructure bottlenecks, he added. — PTI SAAG RR Infra to raise Rs 45 cr
Mumbai: Infrastructure major SAAG RR Infra Ltd has said it would raise Rs 45 crore through rights and public issue. The EGM held recently approved the proposal for raising the amount through rights and public issue, the company informed the Bombay Stock Exchange. The company had also said it would raise Rs 30 crore earlier this year, in order to fund its expansion plans.
— PTI
Arcil declares dividend
Mumbai: Asset Reconstruction Company (India) (Arcil) has posted total income of Rs 61.33 crore and a profit of Rs 30.83 crore for FY-06, as compared to Rs 13.87 crore and Rs 4.34 crore, respectively, for FY-05. The net profit for FY-06 translates into a return on equity of 31 per cent. Arcil has declared a maiden dividend of 12 per cent for FY-06, the second year of its operation, at its annual general meeting (AGM) held recently, a release issued here said. The dividend will entail an outgo of Rs 12 crore on its capital base of Rs 100 crore.
— UNI
Ahluwalia Contracts
New Delhi: Construction company Ahluwalia Contracts (India) Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a public issue of 31,25,000 equity shares of Rs 10 each for cash. Of the total equity shares being offered, 29,68,750 equity shares are net offer to the public, while the balance 1,56,250 shares are reserved for eligible employees of the company. The premium on the shares will be decided through book building process. The issue would constitute 19.93 per cent of the fully diluted post issue paid up capital of the company, while the net offer to the public would constitute 18.94 per cent of the fully diluted post issue paid up capital of Ahluwalia Contracts.
— UNI
Prajay invests Rs 225 cr
Mumbai: Prajay Engineers Syndicate Ltd has invested about Rs 225 crore to set up an information technology park at Hyderabad. The company said it would commence work on the project from July. The state-of-the-art IT park SEZ in Nacharam in Hyderabad would have over 1.35 million square feet of built-up IT space and the project was expected to yield Rs 415 crore in revenues and Rs 95 crore in profits over the next 30 months, the company informed the Bombay Stock Exchange.
— PTI
Hoogly Group’s plan
Kolkata: The Hooghly Enterprises, owned by the Bajorias, would invest Rs 1,000 crore in real estate over a period of five years. Hooghly Enterprises promoter director Sanjay Kumar Bajoria said the group would develop property owned by it at prominent locations at Garden Reach, Ballygunge in Kolkata and one in Howrah. The group company Hooghly Investments Ltd would set up the first electronic mall in India at Kolkata at a cost of Rs 35 crore, including acquiring ownership rights. The speciality mall over 80,000 square feet area would be built on the lines of the Funan IT and Sim Lim Square in Singapore or Panthip Plaza at Bangkok.
— UNI
South hotels bag projects
Chennai: As many as 3,500 rooms will be added to the existing hospitality facilities in south India, as part of 112 projects sanctioned for the region by the central tourism department this fiscal. Of the 112 projects, Kerala has received the lion’s share of 54, followed by Tamil Nadu with 29, South India Hotels and Restaurants Association president M P Purushothaman told reporters here.
— PTI |
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