Projects up UT’s sleeve

Chandigarh to harness eastern side for development, says Sanjeev Singh Bariana

Following years of debate on the north-south divide in the city and the related developments, the Department of Urban Planning has etched out a detailed land use plan for major development in the eastern portion of the city.

Major projects are Police Housing Complex in Dadu Majra, institutional land in Sarangpur and an agro zone near Maloya. Agro zone would be a special site for milch cattle. This project for milch cattle has got eight applications, which will be perused by the Administration before short-listing the financial bid. Big names in the race include Verka and Amul.

The Department has earmarked 150 acres for the Police Housing Complex, at least 493 acres for institutional land, 20 acres for milch cattle, besides unspecified land portions of 93 acres in Sarangpur, 167 acres in Maloya, 162 acres in Dhanas, 70 acres in 38 (West), 400 acres in Khuda Ali Sher and at least 500 acres in Kaimbwala. A senior officer said: “We have different plans about land use. However, a final decision is yet to be taken.”

It has been pointed out that besides certain reserves and the covered forest area, the portion under study was the only substantial land portion left with the Union Territory for new projects. The latest status report says that the UT has 890.34 acres of land for planned projects, which is lying vacant. At least 501.13 acres is reserved for future development.

Of the total land, the UT has already acquired 820.34 acres and at least 3,233.52 acres land is yet to be acquired, which includes land for housing complex and Maloya.

It is pertinent to point out that farmers in the UT are crying hoarse over the UT land acquisition. They are peeved at the abysmally low rates being paid by them to by the government against the skyrocketing market prices. The land portions in Khuda Lahora and Khuda Jassu are yet to be acquired.

A senior UT official said: “There is just a little portion of land left in the north and the south of the city which would be feasible for any major projects. We have carried out the entire groundwork for the project implementation in the east and by March 2007, work on all projects would be underway likely.”

A large section of the city residents are concerned about the shrinking green cover in the city. “Leave aside the northern sectors which came up with sizeable spaces as executed in the first phase of the city sectors, the entire southern belt has very dense population and a matching tight infrastructural settings. The remaining portions, mainly in the East, will soon be having new buildings leaving a much lesser green cover for a much larger population cover”.

Sapna Brar, a housewife, said: “There should be no qualms about the green cover. An education city, a water park and other leisure infrastructure were the need of the hour here to raise the living standards”.

Landscapes on hilltops

Experts being hired to beautify Himachal homes, says Vibhor Mohan

The construction over, don’t just rush into the new house. The enviable ambience that you had dreamt of would be incomplete without proper landscaping of the uncovered area.

And there cannot be better natural resources for landscaping than easily available rocks and decorative plants, besides natural water channels found in the lower Himachal region.

With growing awareness about planning the whole ambience of the house, more and more people are now hiring professional architects or specialised landscapers to chalk out the landscaping of the non-plinth area.

For instance, Col Dilip Gowda, who has recently built a house in the picturesque Khaniara area of Dharamsala, hired a landscaper from Ghaziabad for Rs 3.5 lakh.

The highlight of the lawn is a natural water channel (locally known as kuhl) flowing through the backyard, with a small bridge over it. The flow of water is regulated to make it splash at certain places, in keeping with the fauna around it.

“The landscaping took only two months but we spent six months in setting up the entire ambience. We now spend most of my time in the lawn and backyard,” says Archana, his wife.

Dharamsala-based Architect Amardeep of Design Forum, says landscaping can be broadly divided into two parts — hard and soft. While the former includes pavements, walk-through and lighting arrangements, soft landscaping primarily involves decorative flowers and the kitchen garden.

The landscaping of the house, he says, has to be in keeping with the entire architecture of the house. The kitchen garden, for instance, should be located close to the kitchen and preferably a small door should open into it. This can be possible only if the house is planned in totality.

Architects warn that if landscaping is not climate oriented, the green cover would dry up and disappear in no time.

“It has to be planned in which portion the sun beams the most, so that pavements and other concrete structures are not located there. The direction of the wind is crucial in deciding the placement of water features like fountains and in deciding where to plant fragrant flowers and creepers,” he says.

Landscaping plays a deciding role in giving an impressing outer look to the house and one must take case that the lighting arrangement does not shadow the beauty of the landscaping.

Besides, adds Rajat Mohindra, a Chamba-based architect, the colour palette has to be kept in mind. One can go in for a rock look, tropical look or even plan a lily garden, depending on one’s taste.

The landscaping can also offer different zones for family member of different age groups. There could be sand pits for kids in one corner, a small fountain with flowers all around for the young couple and a lining of decorative plants and benches, where elderly can sit around and also spend time watering the plants.

To go in for landscaping, one has to be aware of the local fauna. It is also important that 60 per cent of the plot should be kept aside for landscaping to make sure it is not merely symbolic.

Amardeep adds that many hotels and restaurant owners in the region are now keen in on getting landscaping done of the interiors as well. “It is all about valuing the rocks available all over the place and plantation-friendly climate. Something like having a perennial natural water channel in your backward cannot be thought of in Delhi, where there is water scarcity and the municipal rules don’t allow it. The service industry is slowly realizing that it is this natural ambience that attracts tourists here and they need to sell it,” he says.

Pathankot plays notify-grab-denotify game

Owners sell land in panic after getting acquisition notices. Once property changes hands, government schemes are abandoned mid-way. Lalit Mohan lists a few cases

Surrounded by the Army, Pathankot city has very little land in its surrounding areas for development. Due to this, whatever little land is available in the city is being exploited by the property dealers and illegal colonisers in alleged connivance with the officials of the authorities. While the residents are being forced to pay through their nose for land, illegal property dealers and officials concerned are minting money.

Property rates in commercial areas of Pathankot range between Rs 5 and Rs 10 lakh per marla. In residential areas, the price ranges from Rs 1 to 3 lakh per marla.

Interestingly, despite being a city with population of nearly 2 lakh, there is not even a single planned colony in the town. Neither PUDA, that was represented by the minister from the area Raghunath Sahai Puri for about four years nor the Pathankot improvement trust, has managed to develop even a single planned colony. Illegal colonisers are openly selling colonies in the city resulting in haphazard development.

The local improvement trust has initiated the process of acquiring land many times in the city but none of the schemes has materialised.

The biggest and the most controversial of these schemes is Truck Union scheme in which the Pathankot Improvement Trust authorities issued notifications acquiring over 300 acre land about two decades ago. Despite the acquisition notices the trust authorities allowed the private owners of sell the land to the property dealers who developed colonies of the land. Illegal development over the land allegedly in connivance with the trust authorities is still going on.

The result is that trust authorities just have about 80 acres left in their possession. The rest 240 acres under acquisition process has been sold and colonies have been developed over it right under the nose of the trust authorities.

In another such case, the improvement trust Pathankot, about two years ago, notified a development scheme on a six-acre prime land on Dhaki road. Acquisition notices were issued under Section 5 and later Section 9 of the Land Acquisition Act for acquiring the land.

A committee was set under the Deputy Commissioner, Gurdaspur, Mr Vivek Pratap Singh, to fix the award for the land. The owner of the land ran helter-shelter to stop the acquisition of his land. However, after exhausting all efforts, he sold the land at throwaway price to an NRI.

As soon as the land was purchased by the NRI, the attitude of the higher authorities of the local government department and local improvement trust officials changed suddenly. A representation was made by the local officials to the higher authorities of local government that they did not have funds to acquire the land. The sources, however, alleged that the improvement trust had constructed shops worth crores that were still to be sold at that time. So, the assertion that there were no funds available with trust was totally baseless.

The scheme on the land was abandoned within a month. The NRI and his associates secured a no-objection certificate from the improvement trust Pathankot and sold the land further allegedly making a profit of nearly Rs 1 crore.

The original owner of land alleged that he was forced to sell the land at lower rates by including it in the acquisition process.

The acquisitions notices were also issued by the Pathankot Improvement Trust for acquiring land near Hotel Venice, on old Shahpur road. However, both schemes were later abandoned.

The way the schemes are abandoned despite acquisition notices, clearly indicates that it was a ploy to grab the land at lower rates

The procedure adopted in the said land scams is simple. Initially notify a scheme on a private land. Force the owners to sell the land at lesser rates on the plea that the land would now be acquired by the improvement trust. Later, when the land is secured, lapse the government scheme and sell the land at market rates.

The authorities of the Pathankot Improvement Trust, when contacted blamed the district town planner for the lapse of some of the scheme. They alleged that the despite the fact that the improvement trust had completed the formality for acquisition of the land, the district town planner did not give no objection certificate for carrying out the six-acre scheme on Dhaki road for one year. This led to the lapse of the scheme.

Better days ahead for Goindwal

Reliance agro-processing unit may spur land prices, says Ashok Sethi

The recent declaration of Tarn Taran as a district and the agro-processing unit to be set up by Reliance Industries Limited in 170 acres of land allotted by the Punjab Government may give a ray of hope to the lifeless Industrial Nucleus Complex.

Goindwal Industrial Nucleus touted as country’s most advanced industrial cluster set up in the early ’80s had been at the receiving end with large majority of units having fallen prey to the apathetic and lackadaisical attitude of the state and the Centre. Galloping interest and other charges by the state financial and other institutions have literally swallowed the entrepreneurial spirit of the businessmen who had put in life’s earnings to set up an industrial venture in this nucleus industrial complex.

The land prices in the residential areas had shown only a natural growth during the last 15 years. The rates, which were quoted Rs 500 per sq yard 10 years ago, have shown a slight increase to the extent of Rs 150 to 200.

The Punjab Agro Industries Corporation has signed a MoU with the RIL to establish hi-tech agro-processing unit here and have already earmarked 170 acres of land in the industrial complex. A senior functionary of the Industries Department stated that once this project gets on stream the real estate prices are expected to jump and may attract many entrepreneurs for going into agro ventures and provide back up services to the RIL. The future seems to be bright in this backward industrial township of the state.

TAX tips
Defining transfer
by S.C. Vasudeva

Q. The capital gains are chargeable on the transfer of a capital asset? What is meant by the word transfer?

— Suresh Kumar, Amritsar

A. Section 2(47) of the Act deals with the term transfer of a capital asset. According to the said section ‘transfer’, in relation to a capital asset includes:

(i) The sale, exchange or relinquishment of the asset or;

(ii) The extinguishment of any rights therein or;

(iii) The compulsory acquisition thereof under any law or;

(iv) In a case where the asset is converted by the owner thereof into, or is treated by him as, stock in trade of business carried on by him, such conversion or treatment or;

(iv) (a) The maturity or redemption of a zero coupon bond;

(v) Any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in the Section 53A of the Transfer of Property Act, 1882 (4 of 1882) or;

(vi) Any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.

It would be observed from the above that the definition of the expression “transfer” as given in the Act is inclusive definition and if a particular situation has not been contemplated specifically in the section but is otherwise understood as a transfer in common parlance, it clearly stands covered within the term transfer.

Capital asset

Q. Capital gain tax is chargeable on the transfer of a ‘capital asset’. Would you please let me know what is meant by capital asset? Would my right to obtain conveyance to an immovable property be a capital asset?

— Sham Sunder, Patiala

A. Section 2(14) of the Income Tax Act (the Act), 1961, defines the expression ‘capital asset’. It means property of any kind held by an assessee, whether or not connected with his business or profession. The following are however excluded from the definition of the capital asset.

1. Any stock-in-trade, consumable stores or raw material held for the purposes of business or profession.

2. Personal effects of the assessee, that is to say, movable property including wearing apparel and furniture held for his personal use or for the use of any member of his family dependent upon him (excluding jewellery).

3. Agricultural land in India provided it is not situated

(a) In any area within the territorial jurisdiction of a municipality or a cantonment board, having a population of 10,000 or more; or

(b) In any notified area.

4. 6½ per cent Gold Bonds, 1977 or 7 per cent Gold Bonds, 1980 or National Defence Gold Bonds, 1980 issued by the Central Government.

5. Special Bearer Bonds, 1991.

6. Gold Deposit Bonds issued under Gold Deposit Scheme, 1999.

The Bombay High Court in the case of CIT vs. Tata Services Ltd. (1 Taxman 427) has held that a right to obtain conveyance of an immovable property is a capital asset.

Capital gains

Q. I am an agriculturist. I am carrying agriculture activity in Himachal. I want to sell a part of the land, which is covered within the jurisdiction of the municipality as per the notification issued by the Government of India. Capital gains earned by me would be taxable as per advice given to me by the tax advisor. I intend purchasing another piece of agricultural land from the proceeds of the sale. Will capital gain earned on the sale be exempt in such a case?

— Hari Singh, Palampur

A. Capital gain arising from the transfer of land used for agricultural purposes is exempt from tax under the Section 54B of the Act if the following conditions are satisfied.

(i) The assessee is an individual

(ii) The agricultural land was being used by the assessee or his parents for agricultural purposes for a period of two years immediately preceding the date of sale.

(iii) The assessee has purchased another land for agricultural purposes within a period of two years from the date of sale.

(iv) The amount of capital gain exempt would be lower of following two amounts.

(a) The amount of capital gain earned on sale.

(b) The amount invested in the purchase of new agricultural land.

As the amount is to be utilised within two years of the date of sale, the amount which is not so utilised before the date of furnishing the return is required to be deposited in a bank or a specified institution in ‘Capital Gains Account Scheme’. The proof of deposit should be submitted along with the return of income. The amount for purchase of new agricultural land will have to be withdrawn from the said account.

Subletting premises

Q. I had taken an area of about 3,000 square feet area in the heart of the city on rent in 2000 on a long-term lease of 15 years with a right to sublet the premises. I was using the area for the purpose of my business. However, now I am getting a very good offer for letting out the said property. If I let out the premises will income from such letting out be taxable as income from house property?

— Aman Sharma, Jalandhar

A. The following three conditions must be satisfied for an income to be taxed under head “Income from house property”.

(i) The property should consist of any land or building appurtenant thereto.

(ii) The assessee should be the owner of the property.

(iii) The property should not be used by the owner for the purpose of any business or profession carried on by him, the profits of which are chargeable to tax.

As you are not the owner of the property, the income from the letting out of the property which you have taken on a long-term lease would be taxable as ‘income from other sources’. I may add that the ‘owner’ for the purposes of Section 22 means that person who can exercise the rights of owner in his own right.

HUDA to target smaller towns
Sunit Dhawan

With a view to ease the excessive and ever-increasing population pressure on the cities, the Haryana Government has decided to develop residential sectors, including shopping complexes in the small towns and townships of the state.

Apart from putting a check on the migration of villagers towards the cities, the move is also expected to maintain an even concentration of population. The state authorities have directed the HUDA officials concerned to implement the move. The process of developing residential sectors and shopping complexes at various sites is already under way.

At the same time, the move is expected to contain the sudden upsurge in property prices in the big towns and cities witnessed from time to time.

The present situation is such that well-off villagers, in hope of getting better civic amenities, rush towards the cities, where they usually get settled in the HUDA sectors. Better roads, besides regular supply of electricity and water and availability of other modern facilities lure villagers to the cities.

“If all these facilities are made available in the smaller townships, the flow of rural population towards the big cities can be checked. The underlying idea of the move is to attract the rural people towards the small towns instead of big cities to ensure that the population is evenly distributed all around,” says Dr Jai Krishan Abhir, Estate Officer, HUDA, Hisar.

At present, the process of developing residential sectors is in different stages at different towns and townships, including Hisar, Hansi, Fatehabad, Tohana and Agroha. While sectors 3 and 5 are to be developed at Hisar, part of Sector 3 is planned to be developed at Fatehabad. Besides, development work of Auto Market in Hansi township is also nearing completion.

What outcome does the proposed move has on the distribution of urban population remains to be seen, but all in all, it can be called a step in the right direction.

Wily ways of land grabbers
Varinder Singh

As the land prices continue to spiral up in Punjab, the appetite of people to take more and more land — both by legal and illegal means— is increasing and land grabbing is becoming more and more sophisticated in Punjab.

Land grabbers, who, run big well-oiled systems, often supported by a clutch of Revenue Department officials and politicians, have been known to devise relatively new modus operandi.

One of such “fool-proof” and oft-used modus operandi is to lay hands on prime properties of old persons and NRIs, which, has been unearthed during preliminary investigations carried by the intelligence department.

Following this modus operandi, shrewd land grabbers, who, allegedly are fully assisted by lower rung Revenue Department officials, first of all pin-point those lands, which, have either been lying unclaimed on account of shifting of base by the aged owners or the ones belonging to those who have shifted offshore.

After detection of such lands, an alleged land grabber connives with some wily revenue official or a deed writer and prepares a fake sale agreement with a person, who, either died long ago or has settled abroad. Old stamp papers are being used to ink such agreements and, hence, old stamp papers are selling in black market. They command a much higher price than their denomination value.

Subsequently, mutation is effected as part of the plan, but this mutation is not duly registered with the Revenue Department for long. Meanwhile, all other requisite papers are prepared by people, who, are a part of the nexus and interestingly, the “selling party” does not know anything about what goes on behind the scene.

Then one fine day, land grabbers finally take “kabza” (possession) of the land. At this point if the genuine owner objects to the possession, the land grabbers or their front men come out with an explanation that they have, in fact, “purchased” the land from a person’s father or grandfather and that he has all requisite documents. While most of the genuine owners prefer to leave the land, the ones, who, try to fight it out have to face long-drawn legal hurdles, particularly, when the other party is in possession of the “documents”.

The situation becomes more complex for them as the original “seller” is either dead or settled abroad from where he or she cannot come to fight a protracted legal battle.