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Verdict enlivens Board
Punjab Regional and Town Planning and Development Board rediscovers its might after the Supreme Court judgement on Anandgarh,
In upholding the orders of the Punjab and Haryana High Court in the Anandgarh case, the Supreme Court has firmly established that urbanisation cannot be undertaken as a result of political caprice but should be a move that is well planned, organised and genuinely popular. “Nature is beautiful. But it demands obedience to its ordinances. When violated the earth erupts and we have earthquakes. Man cannot continue to pick nature’s pocket. We cannot raise multi-storeyed monsters of steel and cement at every place. All places cannot be suitable for a new city,” states the High Court judgment that had quashed the acquisition of land for Anandgarh. Though the High Court did mention a “smell” (and not a “stink”) of malafide in the Punjab government’s move to establish Anandgarh, the Supreme Court has set aside the High Court’s observations in this regard. However the Supreme Court had strongly upheld the main part of the High Court’s verdict that acquisition of land for new townships and regional planning should be done in strict accordance with the law where the process is initiated by the Punjab Regional and Town Planning and Development Board after inviting suggestions and objections from the people. The Board, headed by the Chief Minister, was constituted as part of the Punjab Regional and Town Planning and Development Act, 1995, and consists of ministers and government officials. “The Board consists of persons who have knowledge or experience in the fields of engineering, housing, town planning and urban development. It can associate others for the efficient performance of onerous functions,” stated the High Court. The ground reality however has been vastly different. The Board has been a virtually defunct body and the last time its members met was almost a year ago. Whenever held, the meetings too are an empty ritual since most of the members do not attend themselves but depute representatives. Hardly any discussion takes place and the outcome of the meetings is generally not known. Underlining the statutory authority and functions of the Board as laid down in the Act of 1995, the Supreme Court has injected new life into the Board. The Board has now been made solely responsible for the selection and delimitation of a site for land acquisition whether for the establishment of a new town or a local planning area or for regional planning. Pronouncing strongly on this aspect, the Supreme Court has said: “On a perusal of Sections 56 and 57 of the Act of 1995, we entertain no doubt that it is the Board which has to, by Notification in the Official Gazette, specify an area as a regional planning area, a local planning area or a site for a new town clearly defining the limits of the area. After considering the objections and suggestions that may be received by it the Board may with or without modifications declare the area to be a planning area by Notification in the Official Gazette, and thereafter appoint a planning agency for performance of the functions related thereto.” The Supreme Court further observed: “No provision of the Act has been shown to us which authorises any other agency or authority under the Act to declare a planning area which includes the site for a new town. This function has to be performed only by the Board and that too after entertaining objections and suggestions and considering them in accordance with the Act and the Rules.” Substantially broadbasing the consultative process, the Apex Court added: “Not only individuals but even representatives of the departments of the state government or the Centre or a local authority or any other institution may submit objections or suggestions relating to anything contained in the notification.
So construed, in the case of setting up of a new township, the first step to be taken by the Board is to declare a planning area viz. select a site for the new town after entertaining objections and considering the same. Thereafter, the Board may designate the planning agency for the purposes of performance of the functions assigned to it.” The SC has also clearly laid down that Punjab Urban Planning and Development Authority (PUDA) chaired by the Minister of Housing and Urban Planning is not empowered to “declare the site for the new town as a planning area though it is authorised to prepare and implement new township plans.” Interestingly, the High Court’s judgment in the Anandgarh Case had also pointed out that the Board should have first selected a site for the new township inviting suggestions and objections. “Thereafter a master plan has to be prepared and once this is ready, the government is competent to constitute a special agency for the planning and development of the new town. At the asking of this authority, the government can proceed to acquire the land. Thus, despite the provision of the special authority, the board cannot be bypassed. The selection of the site is the job assigned to the board. This is so obviously because it has and can associate experts. It can get assistance from others,” ordered the High Court. What the state government instead did was to first constitute a new town planning and development agency for Anandgarh by invoking Section 31 of the Act of 1995. The new authority considered three sites and forwarded its recommendations to the chief town planner, who after examination, selected the site and the state cabinet approved it. Then the authority requested the government to acquire land for the new site. “While embarking upon the project of the new town “Anandgarh”, the state has not shown even a scant regard for the salutary provisions of the statute. It has acted against the express letter and spirit of the act. It has not allowed the board to perform its functions. In particular, it has not let the Board to select the site for the new city. It has acted in contravention of the statute,” ruled the High Court. While from one point of view this may be seen as a mere declaration of law, the truth is that it would have far reaching implications on the ground and for the better. Seen more closely, the Supreme Court’s judgment might well pry open the unholy nexus between a handful of politicians in power, bureaucrats and the land mafia which influences majority of the decisions relating to town planning and acquisition of land to the exclusion of large majority of the people affected.
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Industrialists face hurdles in conversion clearances,
A number of conversion plans are pending from the past more than nine months. Reliable sources point out that as September 18, the last date for conversion, draws nearer, at least two-dozen industrialists are in the waiting to apply for the scheme. The sources said that industrialists are wary of different objections being raised by the department of architecture with regard to the building plans. A majority of the applicants feel that the reason for the delay is that the architecture department team is inexperienced in handling issues like shopping malls, which leads to confusion. The Administration has cleared building plans for City Emporio, Centra Mall, Adarsh Furniture, Joshi Autozone, Krishna Automobiles and Magnet, a state-of-the-art vegetable market. A senior official of the Administration said: “We are not delaying any building plans out of choice. The rules are clearly laid down in the books. As conversion was being carried out for the first time, there were certain technical issues, which needed to be discussed in detail, which has taken some time. Now if the industrialists fail to provide parking for the visitors, which are clearly laid down in the policy how can we clear the plans? The smaller plots, particularly two kanals and lesser are facing such issues.” An industrialist requesting anonymity said: “First, we were given the freedom in the garb of converted plots and now they say we should adhere to the original plans. When we are spending such a huge amount on conversion, is it not natural that we also design the entries according to the latest designs? When we clear one objection, the Administration sends us another one like lighting and ventilation.” The official said: “We have made several concessions to smaller plot holders and are willing to listen to all complaints except clearing designs that did not adhere to the building bylaws with safety of customers on top agenda. We will ensure that arrangements for fire fighting and availability of other essential services was in order before clearing the plans.” Industrialists are complaining that the Administration had set up a single window, which assured that “plans would be cleared within days”. “Even if the top officer clears the file within days, other wings related to project raise one issue or the other”. It has been pointed out that parking in the plots lesser than two kanals is not a simple issue. In case the plots leave space for the fire fighting machinery to function, as per the norms, industrialists will not be able to provide sufficient space. “At one point of time we were told we could have multiple entries to the mall from all sides and now we are told we can have two. We agree Administration expects us to follow strict norms. However, why cannot the officials stick to certain clear norms is what baffles us,” an industrialist said. Voice for a better infrastructure by the Administration before the conversion policy starts rolling on ground is also picking sound. “When the Administration is claiming ensuring rigid adhering to the norms by the builders why does it also not upgrade the infrastructure simultaneously. While at least three malls are expected to open to public later this year, the Administration has not even picked up a bit of gravel to broaden the road or any other infrastructure.” The Administration is learnt to have issued tenders for roads and proposed parking in Phase I. However, there has been no announcement for any work on Phase II. At least at the moment!
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SPS Dhaliwal tells builders how not to burn fingers The real estate boom in the country is here to stay. It may have hit a high in some regions of the country and is possibly taking a breather before the upward trend continues. Merrill Lynch forecasts that the Indian realty sector will grow from $12 billion in 2005 up to $90 billion by 2015. The type of returns that this sector has given has made many an entrepreneur jump onto the bandwagon. Equal number of stories abound on those who have burnt their fingers in the bargain. The market has been let down by shrewd brokers and mentors, financers who gave misleading details on financial viability of the projects, contractors who did not fulfil obligations, project mangers who worked more in the interest of the contractor than the promoters, speculative buyers who did not pay up their dues on time etc. Market dynamics are changing accordingly and small fish finds the survival difficult at present. This does not mean that there is no space for a new entrepreneur in the real estate or infrastructure industry. A word of caution though. If you want to succeed, do your homework well. Certain important issues that a new entrepreneur needs to deliberate upon are: Identify market gap
Market must be studied carefully to identify the demand and accordingly pursue the infrastructure development that you plan. This would have to be done by an analysis of the socio-economic scenario and the triggers for such a demand.
Validation of title
This factor is very important as many a project have not taken off as the required diligence in checking out the title of the land, other statues and regulations pertaining to a particular state was not exercised by the promoters.
Appropriate process
There are a number of players who contribute towards the project, which includes the promoters, government, private landowners, investors, technocrats and financial institutions. An analysis of the investment capability of the promoter and his ability to trump up support from the other players would lead to deciding on the model for infrastructure development.
Tailor-made design
Market forces must be taken into account while conceiving the design of the project. I am sure you don’t want to end up selling ice to an Eskimo. What may be selling in the NCR region need not sell in tier II/III cities and vice versa.
Feasibility
Cost benefit analysis should highlight the feasibility of the project. The driving force would be the profits that you wish to generate. These must be realistic to avoid disappointments at a later date. Gone are the days when promoters earned very healthy profits. A realistic appraisal would have be prudent. Any overpricing would lead to problems.
Getting resources
A wise promoter invests the minimal amount of money himself. He allocates low financial risk commitment upon himself while at the same time participating in the financial upside of the project by taking a high minority stake. Contingency plans must be in place to fill in the voids at appropriate times. A reserve kept by the promoter would be mandatory.
Supervising project
Depending upon the size of the project there would be a need to hire a project management consultancy service or have your own set of supervisors working under the project manager. If you plan to have the former, do look into the track record of the PMS. More established ones don’t have the time to devote as they are generally overloaded. Look for a relative new entrant.
Marketing & selling
Though covered in the end, marketing must start even when the project is on the drawing board. A well thought out marketing and sales strategy should be evolved. This activity must cater to all possible media that can be employed and an optimal mix worked out to target the prospective buyers. This, of course, must be related to a realistic budget plan. Hiring a suitable ad firm for the purpose must be done at the conceptual stage of the project so that the required synchronisation is
achieved. — The writer is a retired Brigadier and is presently a senior manager with a real estate firm
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Development project for the block gets official nod, finds out Vishal Joshi To give a developmental boost to Indri, one of the most backward industrial blocks of the state, the town and country planning department has chalked a comprehensive plan. Though Indri is just 22 km from Karnal yet the block located on the banks of Yamuna has failed to witness any visible development. Having a population of more than 16,000 the area is now officially declared as one of the most backward blocks of the state. In the second week of June, the Chief Minister office has cleared the new development project of Karnal district with an exclusive focus on Indri. In order to channelise the planned development and aimed providing modern day living facilities, the new project would also put a check on the haphazard growth of the area. Official sources said that the overall development plan has been chalked out keeping in view the project figure of population of 51,000 by 2021. The potable subsoil water is sufficiently available here. Though Indri is situated on the banks of the Yamuna but no major floods have hit the area in the last 50 years, confirm the district officials. According to the proposed development project for the area, it would have new residential, commercial and institutional places. There is a proposal to develop eight different sectors in the upcoming urban estate. Out of the total new area, the state authorities have earmarked five sectors i.e. 1, 2, 5, 6 and 7 to develop the residential areas. There is a proposed net residential density of 80 persons per acre or 200 persons per hectare. Ample space has been earmarked for several ancillary and allied activities schools, shopping centres, health centres besides others. Though the residential sectors have adequate provisions in the form of neighbourhood shopping, an additional area of about 37 acres is reserved as City Centre in Sector 5 A. About 46 acres of prime land would be available in Sector 2 exclusively for the whole commercial activities. The state authorities have also earmarked 155 acres of land to provide industrial momentum.
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HOME DECOR Devendra Malik elucidates illumination trends
Lighting can be categorised into ambient, accent and task lighting. Ambient lighting is the primary source of light for any room and preferably has no recognisable source. Usually, a fitting is concealed to hide the source of light. Characteristically, ambient lighting washes the area into an even, shadowless, soft and glarefree light, an effect that can be easily achieved by using walls and ceilings as reflectors that soften and diffuse the light from an artificial source. The resulting light is bright enough to comfortably watch television in but at the same time soft enough to make the room look more spacious. The best way to achieve this, as a lighting consultant suggests, is by using a powerful up lighter with an opaque shade to kill the glare, though a down lighter facing the walls can also be used. Accent lighting should be used with restraint, unless it is for a space with gigantic proportion, as too much accent light can make a space look smaller. Every space has a few things that need to be highlighted. Specific downlighter, spotlights or halogens can be used to produce glow or focus on these objects of importance purely for aesthetic purposes. Two criteria that epitomise task lighting are that they allow one to see the task, but at the same time, do not shine into the eyes. Task lighting, if utilised well, can improve the way one works and at the same time, add character to the space. The best task light is the one that is flexible with an opaque shade that sheds a bright, clean circle of light onto the task, but not all over the room.
Classification
Indoor lighting includes lighting for both public and private spaces. While public spaces need brighter and attractive lights, lights that suit masses and people of all ages, private spaces can be more specific in nature. Public spaces for which lighting play a major role are theatres, facility centres, malls, hotels, restaurants, discos, auditoriums, schools, museums, bank and hospitals. Private spaces for which lighting plays an important factor are offices, residences and studios. Outdoor lighting further constitutes spaces like both public and private gardens/parks, facade of a building, recreation areas, parking lots and road signage. Illumination intensities and colour of lights themselves can vary from different gradations to various shades respectively. However, the main light colour is white and yellow.
Trends
Fibre optic lighting is the latest concept in field of lighting and one that seems ready to replace traditional lighting systems. These are practical for areas like swimming pools and spas where electricity needs to be separated from light museums where the requirement is for light sources that do not generate heat and ultraviolet rays, and for decorative properties in the showrooms, displays and exhibition halls. Neon light is the other new craze. May it be the signage board or indoor lighting for a theatre /restaurant, one gets to see plentiful use of neon lighting in various shades and shapes. Neon lights can be used to add a touch of sparkle, glamour and glitter to the overall ambience. An important aspect of planning a building is optimising the use of daylight. Architects relied on atriums, skylights, louvers and glass, and reflective window coatings to bring in and control natural light. These days, planning specialists try to maximise the use of natural light by keeping in mind the position of structure to be
designed.
The writer is a New-Delhi based interior designer. His email id is devendramalik@yahoo.co.in
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GREEN HOUSE Satish Narula discusses pest control
When we talk about plants, it is implied that the pests would be around. It does not matter whether you live on the ground floor or on the top of a six-floor building. Plant specific insects crop up anywhere. This shows that they are omnipresent. They are at home in every nook and corner, in the bed, and thrive even on the dead and live skin tissues. Are you aware that at any given point of time they enjoy piggybacking on you? Today we will deal with some common plant pests. You have to know about them and take care lest you lose best of your plants. The mutual association of plants with the insects in prehistoric, nearly 250 million years before our class came into existence. It is because of the complacence and the insects’ tiny size that leads us to believe ‘nothing is wrong’. It is only after the damage has been done that we realise what had happened. The damage is felt more in case of shade-loving plants where even a small injury to the plant foliage is visible and is an eyesore. Do not go on their tiny size. They are little devils because they have devils mentality of destruction. One of the reasons for their widespread presence is that they can live over a diverse range of foods. Also do not go by the name given to them. You may have come across names like mango mealy bug, lemon butterfly; citrus psylla, grasshopper, cabbage semi-looper, and peach lead\f curl aphids and so on. They have adapted to thrive on alternate flora and that is the mantra of their survival in diverse conditions. Mango mealy bug is known to devour on nearly 70 plant species. Peach leaf curl aphid damages plum, almond, khurmani and many more species of plants. That is not the end of it. They are known to survive even on the most poisonous of plants like dieffenbachia. Over a period of time some of them have developed resistance to some of the chemicals. Some of the insect species are known to have a protective cover. Or they develop one to ward off any chemical assault. Some such insects are the mango mealy bug, the lac insect, the leaf miner and various scales. Except for the leaf miner, the others develop waxy cover or hard crust on their body and are not harmed by ordinary chemicals. The leaf miner, as the name suggests, makes serpentine mines in the leaves eating on the green part and keeps the parchment type covering on its body. It is the upper skin of the leaf, under which it lives, that helps it escape sprays. For them rogor and metasystox are normally used. Methyl parathion is very effective against mango mealy bug. The scales if present in small number could be killed by touch of a cotton swab of ordinary methylated spirit. You can look for these insects on crotons, Ficus species plants, palms, peas and various cucurbits in vegetable and citrus species plants, ber and litchi in fruits and roses. Use of soil insecticide like phorate granules, Thimet 10-G is also very effective. A word of caution - this is not for use in the vegetables and the granules when used are not to be touched with bare hands. Spray sevin, dissolved at two gram to a litre of water, to control larvae. Such a spray will also take care of the chaffer beetle that eats into the green of leaves leaving behind a skeleton of ribs. Repeat the spray after a
fortnight.
The writer is a senior horticulturist from PAU. His email id is satishnarula@yahoo.co.in
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TAX TIPS Q. I am an NRI and own agricultural land and urban property. My sons are also NRIs and settled outside India. However, my daughter is in India and I would, therefore, like to gift the said agricultural land and the urban property to my grandchildren (i.e. daughter’s children). Can you please advise the best tax saving method or transfer the aforesaid properties to my grandchildren? — A.S. Dhillon, Phagwara A. You can execute a gift deed in respect of the properties which you intend to gift to your grandchildren. The gift so made would not be exigible to income tax. Further, no gift tax is leviable in India presently on gift of a property. The gift deed will have to be executed on the basis of the market value of the properties on which stamp duty will have to be paid. The stamp duty is leviable in accordance with the rates prescribed by the state government. The said gift deed will have to be registered with the sub-registrar designated by the state government for registration of the documents. Plot registration
Q. I purchased a constructed house in March 2002 and paid Rs 12,75,000 as consideration. I spent Rs 50,000 nearly on registration charges against this purchase. I had raised a loan from HDFC Bank to meet the cost of purchase. I intend selling the said house in this year and expect about Rs 30 lakh as its sale price. I would like to know the following: (a) Whether the capital gain on the sale of such house would be a long-term capital gain. (b) Whether the stamp charges and interest paid on the loan raised for buying the constructed house can be added to the cost of the house. — A.K. Grover, Karnal A.
The answers to your queries are as under: (a) The house was purchased in March 2002 and you intend selling the same in 2007. Therefore, the period of holding of the capital asset is more than three years. The capital gains arising on the sale of house property would thus be a long-term capital gain and taxable @ 20 per cent plus applicable surcharge and education cess. (b) The registration expenses incurred in respect of the house property would be treated as a part of the cost of the house property. However, interest paid on the borrowing from the HDFC Bank must have been claimed by you as deduction against income from house property. In any case, such interest will not form part of the cost of the house property.
Exemption
Q. I am in the process of being allotted a flat by Haryana Urban Development Authority (HUDA). Am I eligible for income tax exemption on account of payment of instalments towards the acquisition of such flat? — S.K. Sud, Kurukshetra A. In accordance with the provisions of Section 80C(2)(xviii) of the Income-Tax Act, 1961 (The Act), deduction is allowable for the purposes of purchase or construction of residential house property, the income from which is chargeable to tax under the head “Income from house properties” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis. You should, therefore, be allowed a deduction under the aforesaid section against your total income in respect of the instalment paid to HUDA towards the acquisition of the flat. I may add that the deduction would be within the overall limit of Rs 1 lakh allowable under Section 80C of the Act.
Capital asset
Q. I have two residential houses one at Jalandhar constructed in 1988, the second at Ludhiana constructed in 1974. Somebody has told me that if I sell one of these then I have to pay income tax on the capital gain i.e. 20 per cent of the capital gain and there is no other way to save it. Can the capital gains tax be exempted if I take the following steps after selling one house: (a) Buy another residential property in lieu of the one sold, or (b) Buy bonds (recognised by the government) to save income tax on the capital gains. (Income tax saving bonds) — Sunil Kumar, Batala A.
Section 54 of the Act provides that in case of an assessee being an individual or a Hindu undivided family (HUF), the capital gain arising from the transfer of a long term capital asset in the nature of residential house, who has within a period of one year before or two years after the date on which the transfer took place purchased or has within a period of three years of the date of transfer, constructed a residential house, then instead of capital gain being charged to income tax as income of previous year in which the transfer took place, the same shall be exempt from tax. It may be added that in case the cost of new residential house so acquired is less than the amount of capital gain earned on sale of the residential house, the exemption allowable is limited to the extent of capital gain utilised for the acquisition of the residential house. In view of the above provisions you can buy another residential house in lieu of one sold provided this is done within the period stated hereinabove. You can also invest the capital gain earned on the sale of your residential house in capital gains tax saving bonds as recognised by the government. The facility of making investment in the aforesaid bonds is in addition to the exemption provided in Section 54 of the Act. The bonds have to be purchased within six months of the date of transfer of the capital asset. Further, the investment in such bonds after April 1, 2007, during a financial year is permitted up to Rs 50 lakh only.
ITR2 and rental income
Q. I stay in a house provided by my employer and do not claim any HRA. I purchased a house last May after borrowing money from bank, which I gave for rent this March. The first rent I received was on April 4 this year. Which IT return form should I use and do I have to show rent received as other income in the return I would be filing before this July 31, 2007. Please inform. — A Padmanabhan A. On the basis of the facts given in the query, the house was given on rent in the month of March 2007. Accordingly, the rental income for 2006-07 will have to be included under head ‘income from house property’ in the income-tax return to be filed by July 31, 2007. The income-tax return required to be filed by July 31, 2007, should be in Form ITR2, which is applicable to individuals and HUFs not having income from business or profession. |
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Clearing building plans for conversion has emerged as the biggest hurdle in the Chandigarh Administration’s ambitious project of conversion in the Industrial Area. Out of three-dozen odd persons, who applied for conversion, the UT has cleared only six.
Quantity quality economy, aesthetics and psychology must all be considered during light installation. The quantity of light is the simplest factor because it is objective.