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Dwelling on seasonal rivulets
For land mafia, dry stream bed is a business opportunity, says Vishal
Gulati As the trend of acquiring agricultural land for SEZs is
rising, there is a shortage of space for residential projects. Land
sharks, driven by the housing needs of the common man, have now turned
the dry beds of seasonal rivulets (choes) into housing complexes as a
majority of choes are rarely in spate these days. A visit to various
villages and surrounding areas of Hoshiarpur and Nawanshahr districts
shows that the land ‘mafia’ is zeroing in on the choebeds for
constructing houses, putting the life of dwellers in peril. A large
number of colonies are being carved out by breaking embankments of the
choes. Massive digging exercise, being carried out using JCBs, has
been going on for the past many months in the Mahilawali, the Bhangi and
the Aslamabad choes on the outskirts of Hoshiarpur. Huge craters have
been dug to lay foundation. In some areas, including Kathgarh village,
near Balachaur in Nawanshahr district, several palatial house have come
up by constructing stonewalls to change the natural course of rivulets.
“Each day a number of trucks make rounds between the choe and brick-klins,
which have mushroomed in the Hoshiarpur area,” says Ajaib Singh, whose
fields are near the Aslamabad choe. “For us life has again become a
cruel joke. Earlier, torrents threatened our lives; now builders are
forcibly occupying our land,” says Nirmal Kumar, whose farm is located
near the Bhangi choe. “With less or no water in the choe,
agriculture, the primary occupation of the people, has suffered a lot.
Now the land mafia has got the opportunity to turn the tragedy into a
business opportunity,” says farmer Mast Ram. He says the land on the
riverbed is available between Rs 10 lakh and Rs 25 lakh per acre,
depending upon the location. However, in areas near the towns the land
prices have touched more Rs 1 crore an acre. Villagers say those
involved in building complexes are “outsiders”. They first block the
inlets of the choe and then grab the dry bed to sell them off at higher
prices. Studies conducted by Chandigarh-based Central Soil and Water
Conservation Research and Institute say Hoshiarpur, Ropar and Gurdaspur
districts have a sizable area affected by torrents. The hit area is the
highest in Hoshiarpur district (113 sq km) followed by Ropar (56 sq km).
The total area under choes in Punjab is 228 sq km. During the 1988
floods, 27 per cent of the total area of Hoshiarpur district was
affected, while in 1993 it was 18 per cent. Similarly, in Himachal
Pradesh, Kangra district is the worst affected as about 125 sq km area
of the district lies under torrents. In Haryana, the worst hit district
is Ambala (73 sq km). “Those indulging in building housing complexes
are least bothered about the welfare of the public,” says Dr A.K.
Tiwari, Principal Scientist (Engineering), Central Soil and Water
Conservation Research and Institute. He says every year during the
rainy season, torrents cause extensive damage to life and property in
the lower Shivaliks. Before constructing a building, the builder must
ensure that the catchment of the choe is properly treated to deflect the
current. Since the torrent carries a huge load of sediments, it often
results in the deflection of the course. If the torrent changes its
course, it can again come to its original course. “They are also
playing with the life of the water bodies. The blockades in the choe
often result in water shortage downstream,” he adds. However, the
local administration remains a mute spectator to the flurry of
“illegal” activities. The Deputy Commissioner of Nawanshahr, Mr
Krishan Kumar, says he has no information about the construction of
houses on the choes but hinted at taking action, if required. Sources
in the Hoshiarpur Deputy Commissioner’s office said PUDA recently
denied permission to a coloniser to construct a housing society in the
Mahilawali choe.
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Indian woman gets recognition in Britain
Birmingham property entrepreneur of Indian origin, Perm Saini, has been
named one of the Britain’s Top 100 women in the property business.
Ms Saini, founder of Edgbaston-based Claremont Group, was placed 90th
in the influential listing produced by property bible, Property Week.
She is the only Asian on the list. The list is topped by MP Ruth Kelly,
Secretary of State for Communities and Local Government, and includes
the Queen, TV presenters Sarah Beeny and Kirstie Allsop, along with
politicians, property developers and professional advisers from estate
agency, chartered surveying and legal firms. Ms Saini is also one of
the only two female property powerbrokers based in the Midlands.
Phillippa Pickavance, of the Birmingham office of Drivers Jonas, was
95th. A former solicitor, Ms Saini, began building a private portfolio
of properties following the birth of her second child. She then set up
Claremont Group in 1999. The company specialises in acquiring
residential properties for private investors. Now one of Britain’s
fastest growing property companies, Claremont has invested in properties
around the UK and in Dubai, Cyprus and Spain. Flagship deals include the
acquisition of 146 apartments at The Rotunda, valued at £27.5 million
and 75 apartments at The Cube, valued at more than £13 million. The
company is currently embarking on its biggest-ever project, the
development of a £100 million resort in Goa, India. — UNI
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Time for Pathankot to go vertical
That is the only way the city can cope up with land scarcity and housing
demand, argues Lalit Mohan
The scarcity of land is leading to exorbitant increase in prices of land
in the city. The prices of commercial property in the city have
skyrocketed to levels at par with the metros. The market prices of
commercial property in the city range above Rs 10 lakh per marla. It
means one has to shell at least Rs 2 crore for 4,000 sq feet land in the
markets of Pathankot. In the recent past a commercial property in Patel
crossing area of the city fetched a price of about Rs 20 lakh per marla,
according to sources. The prices of the residential are also increasing
though not at the same level. The prices of residential plots in
congested and unplanned colonies being developed in an unplanned manner
by private developers are at least Rs 1 lakh per marla. Mission road, a
relatively posh area of the city, fetches the highest prices for the
residential plots. The prices of residential plots in the area range
between Rs 2 and Rs 4 lakh per marla. Besides the boom in property, the
scarcity of land in the city is a major reason for exorbitant increase
in land prices in the city. The city is surrounded by the Army and Air
Force establishments from three sides. The Army has its dumps in the
area, and as per the notification issued by them, no construction is
allowed within 900 meters of the dumps. The Air Force also does not
allow construction in the 900 meter area of its periphery. Besides, the
Army has acquired large chunks of land all around the Pathankot
city. This leaves very little space in between in which the population
of about two lakh, residing in Pathankot, has been sandwiched. The
result is that whatever land is available is fetching a high price. The
Pathankot city is also developing as a medical hub for the surrounding
areas of Himachal Pradesh and Jammu and Kashmir, besides the Gurdaspur
district. Many doctors have established ultra modern medical facilities
in the city that are attracting patients to the city from far-flung
areas. Some the doctors are also investing heavily in land that
increased the demand. Property is a lucrative business in the city.
This attracts rich and powerful from the area in property business.
Illegal colonies and constructions are common in the area. Recently a
shop was constructed on main Dalhouise road in the heart of city. The
SDM Pathankot got site of shop inspected and was found by the revenue
officials that the shop was constructed 15 feet inside the main road of
the city. After the report, the Deputy Commissioner and the SDM ordered
the demolition of the illegal construction. However, the shop was
completed and is still standing on the road as a shame on the face of
local administration. The Shahpur Kandi road in Pathankot is the only
stretch where Pathankot city can expand. The city needs planned
development and PUDA or local trust should look towards developing flat
system in the city to cope with increasing scarcity of land.
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Apartment culture yet to set in Hamirpur
The fact that most built-up houses in
Hamirpur don’t have a drive-in facility, prospective buyers have no
option but to go in for plots in the unplanned colonies coming up on the
periphery. Despite the demand, flats are still not being seen as a
viable investment by the local investors. The fact that Hamirpur and
its adjoining districts fall in Seismic Zone V, which has the highest
probability of earthquakes, is another reason why people are a bit
apprehensive about constructing multi-storeyed flats. As architect
Sandeep Sharma puts it: “There is a definite demand for apartments as
an increasing number of people are now settling down here. But no
builder has taken the initiative so far. Though the concept of floors
for sale in case of commercial complexes has become a big hit, yet in
case of residential structures, the present trend is to rent out the
flats, not to sell them.” But for anyone planning a good house,
finding a good plot in the posh areas of Hira Nagar, Krishna Nagar and
the five-kilometer stretch along National Highway 88 on the Bhota-Nadaun
road, could be a tough job. Besides, a built-up house on the main road
is unlikely to come with parking space. A local property dealer says
one reason why the flat culture is yet to pick up in the area is the
mental block about possible lack of privacy and lack of sunny areas. The
mentality of staying in a rented house is holding people from coming
together and forming societies, which could buy large chunks of land and
construct own flats. “Considering the haphazard growth on the
periphery of Hamirpur, people will have to eventually accept the flat
culture. Those staying in rented flats have got used to sharing their
roof with someone. The only problem is lack of substantial investment to
construct a proper colony with flats,” he says.
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Lifestyle townships flourish in Bathinda
Dotted with crammed localities with virtually no
breathing space, Bathinda has now made it to the list of cities having
lifestyle townships that promise a perfect blend of luxury and comfort.
These townships are wooing people with amenities like world-class
civic infrastructure with state-of-the-art underground electricity
distribution system, pollution-free surroundings, metalled roads, modern
hospital, well-equipped diagnostic labs, sophisticated club, food
courts, fast food joints, academic institutions and entertainment
centres. Leading the race is Ansal Mittal Sushant City, a joint
venture from Ansal API and Mittal’s, which claims to revamp Indian
living with a touch of a Canadian lifestyle. Mr Abhideep Singh,
Assistant Sales Officer, said the township sprawling over 250 acres on
Mansa road would liberate the city residents from the clutches of a
cluttered life as it offered a vast expanse of green belt and parks with
exquisite plantations and flowerbeds. Allaying prospective buyers’
apprehensions on cost, he said: “It is a misconception that only rich
can afford villas and bungalows. Our township offers lifestyle homes at
reasonable prices and our tie-up with various banks makes it all the
more easy for anyone to own a residence here.” He said a two bedroom
house spread over an area of 200 square yard would cost Rs 17.5 lakh in
their township. “We are also open to sale of plots at the rate of Rs
3,900-Rs 4,000 per square yard, which is much cheaper then the current
prices in the city limit that hover around Rs 10,000 per square yard,”
he averred. He said though there was a little slump at present due to
elections, the revival of prestigious Guru Gobind Singh Refinery project
will lend a fillip to their business in the coming months. Silver Oak
Homes, another township coming up a distance of 3 km from the city,
boasts of lush green surroundings and world-class amenities. It offers
two residential options to its potential customers – single cluster
houses and duplex houses. A single cluster house here will cost Rs 13.13
lakh, while the price of a duplex has been pegged at Rs 15.15 lakh. HBN
Sunrise City has been luring customers with its location in the MC limit
apart from amenities like shopping mall and multiplex cinema. It is
offering plots of 200, 300 and 400 sq yard area at the rate of Rs 4,500
per square yard. Similarly, Ganpati Enclave on Dabwali road has been
offering independent villas and plots apart from shop-cum-offices and
booths.
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Hanging greenery
Overhead basket concept is not new, says Satish Narula
We always think of
decorating the entrance of the house. Have we ever thought of given attention
to what impression one takes along while going out. Here are a few tips. This
will also help those who live on high-rise dwelling units and have only the
benefit of vertical walls to decorate. Basket culture is not new. But in that
case there have to be some overhead arrangements to support the baskets. This
is, however, possible in case of houses in Panchkula and Mohali where most of
the porticos or parking areas have overhead columns. In case of vertical walls,
various kinds of stands can be made, depending upon the aspect and space
available. Small stands can be supported with big nails drilled in the walls.
For bigger stands, however, one has to use angles. Such structures also have an
element of surprise for the visitors who, while entering the house, miss seeing
these. Now the question arises as to what should be the material of the pots
used. For this, there has to be a consideration of the aspect, whether the spot
is sunny or shady. Mostly people use fancy earthen pots or matki for planting
and hang these on the supports. But under exposed conditions, there is quick
evaporation and the demand for water usually exceeds the supply. Result —
plant mortality. At times, due to heavy pots they seem to hang in inclined
position rather than being placed elegantly. For stands fixed on walls, one
must use sturdy stands made of steel. Shade aspect should be preferred. It is
still better if the sun visits such spots only for a few hours. This gives the
plants freshness and shine. When small stands are used, one should use small
plastic pots. It holds the moisture better for a longer period of time. The
planting mixture should also be made as per the kind of material used. In heavy
pots it is better to use rich but light ingredients. For this one can use
vermin-compost in mixture with farmyard manure, sand and soil in equal parts.
In case of small plastic pots, moisture, no doubt, is conserved better but as
the material capacity is less, the watering needs increase. One can mix
fragments of moss grass too with the potting mixture. This will increase the
moisture retention capacity of the potting mixture. The pots placed under
such conditions are normally exposed and, therefore, the selection of plants
should be judicious. Use only the hardy species, which at the same time should
be attractive too. You can go in for tradescantias, pilea, setcresia,
asparagus, zebrena, etceteras. For somewhat protected place one can go in for
less hardy plants like ferns, especially the Maiden Hair fern, certain short
statured begonias and klanchoes, ceropegia, pepromea etc. In winter, one can
raise small stature flowering annuals like sweet alyssum, candytuft, pansy,
petunia or even short-stature bulbs of various season like narcissus,
zephyranthus (pink, it is more hardy) or even hyacinth if you can do it. These
could be raised elsewhere and kept on the stands when in flowering.
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Sealing drive hikes commercial property rates
Thanks to the ongoing sealing operations in the Hisar
district and nearby townships of the region, the prices of commercial
plots and shops located on the government-approved sites have witnessed
an upsurge. The approved commercial sites include those developed by
HUDA, Improvement Trust and Municipal Council. On the other hand,
prime chunks of land located in residential colonies, which earlier used
to fetch handsome prices in view of their good “commercial value”,
have registered a steep decline in their rates. According to sources in
the real estate market, the situation has arisen as the sealing
campaign, which was more of a threat looming large over the trading
community till recently, translated into reality. It is pertinent to
mention here that the HUDA authorities had recently launched a sealing
drive in which a number of shops and other commercial establishments,
located in the residential sectors and on adjoining roads were sealed by
constructing brick walls at the entrances. The move had infuriated the
traders, who maintained that they had been paying due taxes to the local
Municipal Council and had every right to run the shops. The affected
shopkeepers also staged a dharna and blocked traffic at Dabra Chowk in
protest against the sealing exercise. The Haryana Vyapar Mandal had
even threatened to call for a statewide bandh if the “harassment and
dislocation” of traders in the name of sealing operation was not
stopped forthwith. On the other hand, HUDA officials carrying out the
exercise asserted that they were only following court’s orders in this
regard. Soon after the campaign, some enterprising businessmen removed
the seals and reopened their shops. Following this, the Estate Officer
of HUDA issued a notice, warning the traders from reopening the sealed
shops. They were told that such acts on their part could invite legal
action regarding contempt of court.
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Realty gets Rs 1,252 cr FDI in first half of fiscal
Booming realty and construction sectors have received foreign direct
investment of Rs 1,252 crore in the first half of the current fiscal,
with most of the inflows coming through the popular Mauritius
route. Three realty and construction firms received foreign capital
through the tax haven of Mauritius, while one received it from the
US. Companies that received FDI were Orange Realty Pvt Ltd, Mantri
Developers Pvt Ltd, Alpha G Corp Development Pvt Ltd and Jaipur Mahua
Tollway Pvt Ltd. Orange Realty tied up with Ireo Investment Holding Ltd
of Mauritius for two projects involving total inflows of about Rs 543
crore, official sources said. Mantri Developers Pvt Ltd found partner
in GSS III Rose Investment Inc again of Mauritius for an FDI of Rs 300
crore. Alpha G Corp tied up with SS III Indian Investment One Ltd of
Mauritius for Rs 263 crore, while Jaipur Mahua Tollway forged an
alliance with US-based IJM Rajasthan (Mauritius) Ltd involving a foreign
capital of Rs 145 crore. Most of the firms would deploy foreign capital
for various real estate activities. — PTI
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Micro rural malls in
Gujarat
Model fair price shops, grandly described
by the government as micro rural malls, are springing up all over
Gujarat where village people can shop for all their needs 24x7. Already
512 such ‘malls’ have sprouted and another 508 are on the anvil. The
state government plans to have 1,000 such malls every year, official
sources say. Sources said the malls were proving to be viable
commercial centres, meeting diverse needs of villagers. — IANS
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Profit from leasing out factory is not business income By S.C. Vasudeva Q. I have constructed a factory shed in an industrial estate and leased the same to another entrepreneur at a rent of Rs 20,000 per month. Apart from letting out I am also providing certain facilities such as furniture, fixtures, air-conditioners, water, watch and ward staff. The rent deed permits me to depute my security staff for on the spot verification of the sheds at any time during working hours. I have also received a security deposit of Rs 4.80 lakh, which is refundable on the vacation of the shed. Will the income from letting out such shed be treated as income from business? — Vinay Goel, Sangrur A. The facts of the case are almost similar to a case decided by Calcutta High Court and reported in 249 ITR 49. This decision has also been confirmed by the Supreme Court and is reported in 263 ITR 143. The company i.e. Shambhu Investments P. Ltd. in the said case had let out a property to various occupants along with furniture, fixtures and air conditioners for being used as a table space together with providing of services such as watch and ward staff, electricity, water and the common services. The company had contended that income from such letting out is taxable as income from business. However, the High Court held that such income is taxable as income from property. The Supreme Court confirmed the said decision. In view of the said decision the income from letting out the shed would be taxable as income from house property under Section 22 of the Income Tax Act, 1961, (the Act). Rent to kin
Q. I
stay with my parents in a house. My mother owns the house and I intend paying
her rent for the accommodation and claim the exemption of house rent allowance
being received by me. Is there any restriction in doing so? — Rajeev Kumar,
Yamunanagar A. The provisions of the Act are very clear in this regard. An
assessee can claim exemption of house rent allowance in case he is making a
payment towards rental for his accommodation subject however to the limits
specified in the Section 10 (13A) of the Act. Thus, there has to be an actual
payment of rent so as to claim the exemption. You can therefore claim an
exemption only if the rent is actually paid by you. It may be added that rent
so paid would be taxable as an income from house property in the hand of your
mother.
Sale & purchase
Q. I own about 10 acres of agricultural land
in a village near Abohar. The agricultural operations are being carried on the
said land. I intend selling that land and am likely to earn a substantial
amount of capital gain thereon. I would like to invest the said amount of the
capital gain earned on the sale of such agricultural land in acquisition of
another piece of agricultural land in the rice belt of Haryana. Please let me
know if capital gain earned on such sale would be exempt from tax? — S. K.
Singh, Fazilka A. According to the provisions of the Section 54B of the Act,
the capital gain arising from the transfer of the agricultural land would not
be chargeable of tax in case the assessee purchases any other land for being
used for agricultural purposes within a period of two years after the date of
transfer of the agricultural land. In such a case if the amount of capital gain
is greater than the cost of land so purchased, the difference between the
capital gain and the cost of land so purchased shall be chargeable as the
income of the previous year in which the land is purchased. In case the
capital gain is equal to or less than the cost of land purchased capital gain
shall not be charged under Section 45 of the Act. I may add that the capital
gain not utilised before the date of furnishing the return of income in respect
of the year in which sale took place, is required to be deposited in a separate
account under capital gain scheme. Such account can be operated for the purpose
of purchase of agricultural land within the prescribed time limit.
SC
decision
Q. I have constructed a cinema hall on leasehold land, the lease for
which would expire after a period of nearly 50 years. I have paid extra ground
rent for the conversion of the land into a commercial land. I have also paid
commercialisation charges for the commercial use of the building. Can such
commercialisation charges to be treated as part of the cost of building? —
Chanderbhan, Nawanshahr A. In the case CIT vs. Hindustan Times Ltd. (231 ITR
747) (SC) the company paid commercialisation charges for the commercial use of
the building. The Hon’ble Supreme Court held that such commercialisation
charges would be treated as part of the actual cost of the building and,
therefore, depreciation would be allowable thereon. On the basis of the above
decision, the commercialisation charges paid by you for constructing the
building should form a part of the actual cost of the building.
Bifurcate
sale
Q. I own a factory shed in an industrial area developed by a government
authority. I have been using the same for the purposes of my business for the
last 10 years. I intend selling this shed and buying a bigger plot of land for
my industry. Would the capital gain earned on the industrial shed be considered
a long-term gain or a short-term one? — S.S. Saluja, Muktsar A. The sale
price of the shed and that of the land on which the shed is erected should be
bifurcated and so specified in the sale deed to be executed for such a sale.
This is because the capital gain earned on the sale of super structure shall be
treated as a short-term capital gain in view of the provisions of the Section
50 of the Act. Such short-term capital gain would be the difference between the
written down of super structure as per the tax records and the sale price of
the super structure. The capital gain earned on the sale of land on which the
shed had been erected will be treated as a long-term capital gain.
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Israeli firm to invest $330 m
Jerusalem: Israeli company, Jerusalem
Economic Corporation (JEC), is to buy land worth $330 million in Thane,
near Mumbai, in real estate investments. “For the first time, we’re
investing in India, which the company views as a strategic goal in its
development. The company aims to locate opportunities for the sake of
future growth,” Chief Executive of JEC Oded Shamir was quoted by daily
‘Ha’aretz’ as saying. This will be Eliezer Fishman real estate
group’s first foray into the Indian real estate market, it said. —
PTI
Stake in realty portal
New Delhi:
Real-estate network
Jaaydaad.com has said DMC International Ltd acquired a 10 per cent stake
in it for Rs 4 crore, in the first phase. “We believe that first-time
concepts such as real-estate franchising, auction and Jaaydaadnama will
go a long way and help take the industry forward,” DMC International
Chairman P K Awasthi said in a statement. DMC International is a player
in the safety solutions market in India and a promoter, developer and
builder in Tier II and III cities. — PTI
Terminal Mall
planned
Chandigarh:
Heritage Group, a group with realty interest in the
region, plans to develop a ‘Terminal Mall’ in Amritsar. “It will
be the biggest shopping mall of the city spread on 4 acres of land at
Airport Road, Amritsar and designed as shopping, entertainment and
lifestyle destination of international class. It will be strategically
located with centrally air-conditioned atrium, a 4- star hotel,a three-
screen multiplex, food courts, spa and business centre,” says Mr
Rajesh Bhalla, Managing Director of the group. — TNS
BSEL hotel in
Pune
Mumbai:
BSEL Infrastructure Realty has entered into a 50:50 joint
venture with Unity Infraprojects for constructing, operating and
maintaining a 400-room hotel at Balewadi, Pune. Six acres of land has
been allotted to the joint venture at the bid amount of Rs 156 crore and
the concession period is 60 years, BSEL Infrastructure Realty informed
the Bombay Stock Exchange. — PTI
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Even though there are hardly any plots for sale in the
posh areas of Hamirpur, apartment culture is yet to pick up within the
town and its surrounding areas.