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Baddi in verification mode, builders restive
Proxy deals and fiddling with norms make Himuda reconsider permission granted to realtors, reports
Ambika Sharma
With investment worth Rs 900 crore coming through in the housing sector, Himachal is all set to witness a major revolution in dwelling units. It was after the constitution of the HP Apartments Act in 2004 that non-Himachalis were accorded the consent to enter this hitherto confined territory. The initial euphoria attracted builders from neighbouring Punjab, Haryana, Chandigarh as well as Delhi and as many as 25 managed to get licence from the Himachal Pradesh Housing and Urban Development Authority (Himuda). An estimated 8,000 flats are slated to come up once all these builders come up in the Baddi-Barotiwala-Nalagarh industrial area. Another 153, who had got registered, still await to join the bandwagon. It has, however, been a long wait for these 153 builders after the state revenue authorities put a temporary halt on further permissions and decided to review the existing projects. A high-powered committee, comprising secretary revenue, deputy commissioner and director, industries, had been constituted for the purpose. The government had detected a number of cases, where instead of pursuing genuine housing activity, investors were executing clandestine deals to sell land to non-Himachalis. The committee was, therefore, directed to check the progress of all ongoing housing projects. The committee has served notices on all builders and directed them to furnish information about the progress of their projects. The committee will then physically verify the progress of each project. “We are supposed to ensure that there has been no misuse of land and the permission granted for setting up housing projects is not used for pursuing any other venture. All future permission will be reviewed by this committee and ensure that no revenue law is violated,” observed secretary-revenue Diljit Singh Dogra. Revenue authorities are leaving no loopholes to allow buyers with vested interest to buy land in Himachal. The committee was further entrusted with the job of assessing the actual housing requirement in the industrial area and also find out whether the permission already granted would suffice for the demand. This will ensure that the area does not get saturated with housing projects and only need-based projects come about. Once a builder seeks permission to set up a housing venture, every apartment, which he sells, too, has to avail the same permission under the Section 118 of the HP Tenancy and Land Reforms Act. Since this permission involves a tedious process, builders press for curtailing this provision for every flat owner. Builders feel it may lead to undue prolonging of the procedure and discourage flat owners. Builders, who are not very happy rue that they had been made to wait since past several months to avail permission under the Section 118 of the HP Tenancy and Land Reforms Act. This was despite the fact that they had already been issued an essentiality certificate for setting up projects from the Himachal Pradesh Housing and Urban Development Authority (Himuda). They were now awaiting permission after which they could seek a licence from Himuda and start project. Figures procured from Himuda reveal nearly 25 housing projects are coming up on an area of nearly 1,000 bighas in this area. Inquires reveal that though almost 8,000 housing flats are slated to come up in this industrial area, only 2,000 flats are in the process of construction. These comprise all categories of flats, including low, medium as well as high-income groups. The government had also become vigilant after nearly 2,310 cases of fraudulent deals on the General Power of Attorney (GPA) were detected by the revenue department. An inquiry was conducted by the state CID into all such cases. It was further handed over to the revenue authorities, which is now inquiring into the matter. This had caused revenue loss worth thousands of crores as land deals were executed on the GPA and the government received no revenue and none of the deals was registered. This has rung alarm bells in the revenue department and it decided to monitor all present projects before according fresh permissions.
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Sloppy structures on the slope
Plots of uneven dimensions are being carved without the approval of the Town and Country Planning department, says
Rakesh Lohumi
Haphazard construction continues in the main towns of the hill state unabated as land owners manage to carve and sell plots without the mandatory approval of the town and country planning (TCP) department. A provision was incorporated in the Town and Country Planning Act way back in 1981 which laid down that no registrar or sub-registrar will enter any sale deed without the prior approval of the subdivision of land by the TCP department. However, it has been observed more in breach all these years. Influential landowners have been getting the deeds registered without the approval in connivance with the revenue officials. The result is that plots of all shapes and sizes are sold out and many times the buyers are shocked to learn that construction could not be raised on the land. At times, such unapproved plots lead to endless litigation as no proper approach is provided and there is no scope for laying sewerage land water lines and other civic amenities. Plots are often carved out against the contours. The result is that major towns like Shimla, Kulu, Manali and Dharamsala continue to grow in a haphazard manner. Huge structures have come up on steep slopes virtually one over the other. Once construction takes place, the local municipal authorities are in no position to provide basic amenities like ambulance road and sewerage connection. As per the latest norms, while carving out plots, about 40 per cent of the total land has to be provided for circulation, infrastructure networks, parking, parks, open spaces, playgrounds, recreational pursuits and basic services. The division has to be carried out keeping in view the interest of the purchaser and not the seller. Keen to derive the maximum out of their land, the owners bypass the department. Minimum area of a plot shall not be less than 150 sqm for a detached house and 120 sqm for semi-detached house. Row housing will be allowed on plots of minimum 90 sqm, subject to the condition that maximum number of such plots does not exceed 8 in a row after which a gap of 7 metres shall have to be left. Under exceptional circumstances, considering site conditions, minimum 60 sq m plot for construction in a row with two common walls may be allowed, so as to provide smallest possible residential construction. The plots should have proper shape and dimensions in accordance with the natural profile of land and slope. The dimensions should preferably be in the ratio of 2:3 and in no case the ratio should exceed 1:3. The sub-division of land will be permitted in accordance with the natural profile as shown on contour map taking into consideration the drainage, accessibility, road alignment, wind direction and local environmental imperatives in accordance with the prescribed land use. Revenue officers maintain that while registering land sale deeds they are obliged to go by the registration Act which does not have any provision for prior approval of the subdivision of plots. The matter has been discussed several times in the government at various level and instructions issued to the deputy commissioners more than once to strictly enforce the provision and restrain the registrars and sub-registrars from registering land sale deeds or documents of any sub-division of land on share basis unless the subdivision into plots was duly approved by the TCP department. Such a provision had been enforced in other states. In fact, as per the instructions, the subdivision approved by the TCP has to be incorporated in the revenue record, along with an affidavit by the owner that he was surrendering the land provided for common facilities to avoid unnecessary litigation
in future. There have been instances when the plots were duly approved from the department but while carrying out construction, the land set apart for roads, parking, sewerage and other common facilities were encroached.
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Safety first, design later
Devendra Malik talks on how minimalistic approach is compromising on the security of toddlers and the elderly Trends in designs are changing and newer materials are being used for constructions and finishes. Earlier, ornamental and heavy design elements such as circular shapes, pillars and heavy wooden sections were highlighted but nowadays minimalistic and straight line approach with modern electronic facilities are being kept in mind while designing a project which include wide openings with structural glazings and aluminum composite panels. This minimalistic approach may, however, lead to major mishaps. A case to the point is the accidental fatal fall of two toddlers from an apartment’s ungrilled window at Panchkula. Architects, being the trendsetters for living styles, should keep in mind the type of project while designing. The buildings may range from being residential (plotted or condominiums), commercial, institutional to recreational. Proper standards and specifications meant for them need to be followed. The psychological-knit of a society (changing from joint to nuclear families) should also be kept in mind instead of blatantly copying the western designs as group-housing units are not designed for a specific age group or a person in particular. Nowadays, all of us live according to a busy schedule and have no time to think about security and safety aspects. Reputed builders and developers lend an impression that there buildings, being 21st century modern complexes, are equipped with all modern facilities and amenities such as anti-burglary alarm systems. They, however, compromise on the basic security issues such as provision of grills on windows, concealing shafts, lift attendants and plain glasses, instead of toughened glasses in wide openings. Even designs of railings are such that a kid can slip out of it. — The writer is a New-Delhi based interior designer. His email id is devendramalik@yahoo.co.in
A few guidelines
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Regulatory body in offing
Concerned over growing complaints of malpractices in the realty sector, the Centre will set up a regulatory body to deal with it, union urban development minister S. Jaipal Reddy said in Mumbai. “We are setting up a regulatory body to address the compliance of the consumers and the developers. It will be a quasi-judicial body headed by an eminent personality,” Reddy said on the sidelines of a real estate summit. The minister said the government would like to set up the regulatory body first in Delhi within six months and would ask the state governments to follow the suit. “We will set up the body in Delhi first as a model structure. We will request all states to follow that,” Reddy said, adding that the land price and other relating matters could not be included under the jurisdiction of the body since these are state subjects. Realty consumers feel often cheated with the price, the floor area and the proper documentation when they buy their dream house. Similarly, developers face a lot of difficulties in procuring lands and executing their projects.
— PTI
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Banks dither in lending to GenX
Young borrowers are main defaulters in housing loan segment, finds out
Young borrowers have become main defaulters, especially in the housing loan segment. Banks are facing the highest increase in default in the home loans and are beginning to feel the “bite” after growing their portfolio at a breakneck pace over the last three years. O.P. Bhatt, Chairman, State Bank of India, says the capacity of Indian banks to identify the price risk is not adequate and in many cases,
absent.
Youngsters, who are just into the job market want a house loan, besides furnishing finance. Nothing wrong with the aspirations themselves, it is just that the lending has to be repaid. Most of the youngsters forget this and many of them, especially those employed in the BPO and IT companies disappear after taking a loan – shifting jobs, residence and of course, changing mobile numbers too. It become very difficult for the branch managers and field officials to trace locations and it proves a costly exercise to go after them. Manmohan Huria, a retired IAS officer from Punjab, cautions that it would not be fair to generalise that everyone in this segment is a bad risk. Some borrowers in this age group do find themselves over-leveraged, Huria adds. The onus is on the banks to give credit to this segment in smaller doses if they discipline credit. It is for the banks to observe all due diligence practices. Earlier, it was the banks that were giving loans to young borrowers, by including the income of parents, just to boost the housing loan portfolio. Now, a sizeable number of private and public sector banks have decided not to give loans to those less than 25 years of age as there is a significant change in borrower behaviour between the age of 26 and 28. Despite the reduction the rate of interest and number of new schemes being floated by the banks - housing loans are not picking up. Home loan growth is expected to fall to 15 per cent after two years of robust 33-35 per cent growth. Finance experts as a thumb rule advise that home loan repayments should be restricted to 30 per cent of borrowers monthly income. Any temporary job loss or unexpected expenditure in such a case could make financial situation miserable. Often age plays an important role in the final decision. And if any one has to fulfil the aspiration, what is needed is to do is to go for home loan well before retirement. Banking industry sources have for the time being cautioned that a combination of rising interest rates, high cost of real estate and higher margins in bank loans would slow down the growth in home loan portfolio. Even now the RBI is not at all interested in bringing down the interest rate on housing loans but banks on their own are deciding to lower the interest rate because of the competition. — The writer is a senior banker
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US home sellers seek divine help
With loans hard to come by and buyers thin on the ground, some homeowners in the United States are seeking divine help to sell their home. They are turning to St. Joseph, who, in addition to being the foster father of Jesus, is the patron saint of home sellers. They bury a statue of St. Joseph in the garden of a property they want to sell, and then beseech him to intervene on their behalf to find a buyer. “The trend has picked up in the last two years, when the market slowed down,” said Dorie Glass, a realtor who recently sold a three-bedroom house in the plush Washington suburb of Bethesda for $6,79,000 (Euro 4,86,000) — with a little help from St. Joseph. “Houses in neighbourhoods where you used to not even put up a ‘for sale’ sign before they were snapped up were sitting on the market for more than 30 days. We don’t force the idea on our clients but if a seller says something to me about St Joseph, I say, absolutely, go out, get one and bury it. “What else can we do in this market?” Market analysts predict that home sales will fall to fewer than six million this year compared with nearly 6.5 million in 2006. Prices are also expected to slide by around 2 per cent by year’s end from record-high levels last year. Statues can be picked up at religious paraphernalia shops, such as the Catholic Information Centre in Washington, which sells around a dozen St. Josephs each week, or the National Cathedral shop, where they are being snapped up by eager home sellers. “Last year, we sold around 50, but in the past two months that’s doubled,” said Chris Derderian, chief buyer at the shop. Phil Cates, who runs the StJosephStatue.com website, where hopeful home sellers can also buy a statue, said the ritual of burying St. Joseph gave people hope in a depressed market. “St. Joseph represents to most a sense of hope. In the current situation, hope is pretty much all we have,” Cates said. Cates said tens of thousands of St Joseph home sales kit are sold each year through his website. Kit purchasers get a free home listing on Cates’ website—but according to testimonials, many don’t use the listing because their home sells quickly after they bury the statue. Each kit includes a four- or eight-inch (10-20 centimeter) statue of the saint, a brief history of St. Joseph, and an instruction book on how to bury him. “The eight-inch statue was made for a man in Beverly Hills, California. He called us and said, ‘We have houses that cost five million dollars here. We need some extra help,’” said Cates. The statue does not work on its own but in conjunction with prayer and belief, a booklet about St. Joseph says. “Superstition is about magic; it is a false and misplaced belief in the inherent power of things,” the booklet says. “Religious devotion on the other hand involves faith in the power of God. It recognizes that everything in life — including the sale of our house — is under the sovereign will of God,” it says. Cates has received hate mail from people who said the practice of burying St. Joseph was steeped in superstition. “There is no magic to it. It’s about getting beyond ourselves and calling on something larger than we are for help,” Cates argued. Washington realtor Diane Scanlon, however, told AFP that a Catholic priest refused to bless one of her clients’ St. Josephs, saying he was not “into voodoo.” Some home sellers leave nothing to chance. — AFP
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Right time to think rosy
This is the proper season to prune roses for spring-time yield, says Satish Narula This is the only and the most appropriate time to talk about roses. You must be wondering why now when the bush is at its lowest ebb with insect-eaten leaves and no flower worth the name. Yes, for long bush life, best quality and extended bearing of blooms, you need to work now. Rose has caught the fancy of one and all. Gone are the days when one used to visit a patient with fruits. Roses are what cheers him the most presently. To know more about their importance, wait till the Valentines’ Day when they sell for a premium. For the information of farmers and orchard-keepers of the region, rose is no more a backyard flower. It has an attractive commercial prospect too. This is the right time to prune them. It is also the time when we make the biggest mistake of exposing the roots. This, according to normal belief, is to add fertiliser and also expose the roots to air and light. There could not be a more misplaced conception. In the process of exposing roots, we do an irreparable damage to the feeders that are confined to the near surface of the soil. And then it is like offering food to a person with a tape on mouth. Moreover, where is the need of exposing the roots to light and air? Roots are basically photonegative and grow down in the soil, away from the light and there is sufficient air in the soil pores. The cut or damaged roots remain in the soil, support diseases and become a potential danger for attracting white ants. Had there been such a need for ‘light and air’, Mother Nature would have provided these at the top of the plant! Do not worry about spoon-feeding by exposing the roots. There is no need to follow such a procedure. All fertilisers available in the market are water-soluble and become available on their own when applied. These just have to be mixed gently with the upper soil layer followed by watering. The irreparable damage to the plants shortens the life with the result that the plants start dying one by one, to be replaced almost every year. This results in uneven age and growth and the bed loses uniformity. As the plant grows to bear flowers, the normal complaint is that the bearing is not as much as it should have been even though the plant had been well-fed and nurtured. Unless you remove the fading and seeding blooms, you will not get the next bloom on the same stem. Remember, every bud below a flowering bud is a potential flowering bud. It is because of the apical dominance and unless the upper fading or seeding bloom is removed, the lower bud will not bloom. So be very quick to remove them. The other reason of late or poor bloom could be the insect attack. Keep a close watch for aphid assault that congregate in large number on the bud, suck the sap and dry it prematurely. Late winter blooms also fail to open and if they brave it there is petal injury reflected as blackening of the margins. Why not prune immediately to advance the first flowering flush that escapes the winter injury? Also be very careful about the red scale damage to the plants. After the pruning has been done, give a closer look to the bare arms. If you find small reddish ‘eruptions’ like pox marks, you are sure to have scales on the plant. You can distinguish their presence comparing the colour-affected shoots with healthy twigs. These tiny devils do not move and remain stationery under the covering of waxy surface, sucking the plant sap by keeping their mouth parts stuck to the plant body. If you have to look after a few plants, you can rub the twigs with a swab of cotton, sponge or a used toothbrush dipped in methylated spirit. For effective spraying, you can use folidol or ekalux. Be careful, as these chemicals are very toxic. Also do not forget to burn and destroy the pruned wood. The writer is a senior horticulturist at PAU. His email id is
satishnarula@yahoo.co.in
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Ansal Buildwell to spread out with Rs 4,000
crore North India will be the key focus area, reports R. Suryamurthy The real estate scene in set to change dramatically with Ansal Buildwell planning to roll out 24 projects across the country with an investment of about Rs 4,000 crore. The realty firm plans to build opulent and group housing accommodations in several tier II and III cities apart from the metros. All projects, which are coming in important cities of India, can be considered as architectural wonders, says Gaurav Mohan Puri, vice-president, Ansal Buildwell Ltd. Ansal Buildwell is all set to make mark in cities like Amritsar, Chandigarh, Kurukshetra, Ghaizabad, Dehra Dun, Panipat, Karnal, Bahadurgarh, Pinjore, Agra, Pathankot, Shimla, Rajkot, Goa and Hyderabad. Some of the projects to be unveiled by the company include Ansal Forte at Bangalore; Ansals Riverdale at Kochi (10 acres); Ansal’s Green Valley at Dehra Dun; Prakash Enclave at Moradabad; Ansal City at Amritsar (500 acres); Ansal Basera City & Mall-Multiplex in Jhansi (500 acres); Ansal Aditya Vatika; Ansal’s Farm Houses; Ansal City (150+90 acres) in Gwalior; Group Housing in Jammu; Ansal City Puthiyakavu; Kerala (35 acres); Harmony Homes; Florence Marvel; Florence Villa; Florence Abode; Silver Creast; Eden Villa; Oriental Villa; Oriental Homes; Boom Plaza(commercial); and Corporate Point (commercial) in Sushant Lok- I-II & III Gurgaon. Explaining a few projects, Gaurav says Ansal City-Amritsar will give the residents a feel of Beverly Hills in Los Angeles. He says Gurgaon-based Sushant Lok II and III will see yet another modern row housings called Florence Abode and Florence Villa with the area of 8,000 sq. ft. Corporate Point-Sushant Lok-II is again a state of the art commercial complex with a colourful aluminium composite panel collage with glass capsule. This project will be built in 25,000-sq. ft. of area and answer the demand of modern office buildings in the surrounding region. Ansals are also coming up with a project in Faridabad called Canal Towers, which is adjacent to two beautiful canals. “We
believe in taking technical and management expertise to smaller towns and
improve the lifestyle of a vast populace over there,” Gaurav says.
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TAX tips
Q. I sold my jewellery during the previous year 2005-06 and to claim the benefit under Section 54F, I acquired a residential house property within the stipulated period. The assessing officer has denied the exemption under Section 54F on the contention that the property purchased is an old residential property and further that the same has been let out for commercial purposes. Is the stand of the AO correct? —
Ramji Lal, Patiala A. The provisions of Section 54F require the investment of the net consideration in the acquisition/construction of a residential house within the specified period. The section nowhere requires that the acquisition should be of a new house property. Further, the use of the property is not relevant criterion to consider the eligibility or benefit under Section 54F of the Act. The requirement of this section is the investment in a residential house property. If the property as acquired by you is a residential property within the records of the municipal authorities, the assessing officer cannot disallow the claim under Section 54F of the Act.
NRI investments
Q. I have managed to locate the Form ipi7, which, as an NRI, I am obliged to submit to the RBI stating the purchase price of the property. On that form it states that you have to attach evidence from the Indian bank of transferred funds from overseas to purchase the property. I have paid for the property in two instalments. The first instalment was made directly from my UK-based bank in August and the second would be in December from my Indian-based NRE account. Do I attach statements from both banks to show that the money was transferred to the seller even though one of the banks is based in the United Kingdom? If I wish to sell the property after two or three years, can I remit the funds back to the UK? How do I do this, as I am unfamiliar with Indian banking regulations? — Mandip, UK A. Apart from the bank statement, it would be advisable to attach the forwarding letter along with which the draft/cheque from your foreign bank account was sent to the owner/builder of the property as well as a receipt issued by such owner/builder clearly indicating the details of the instrument through which the payment had been received by the owner/builder. It should be possible for you to repatriate the amount realised on the sale of property, which has been purchased with funds brought from outside India. I may add that any gain realised on the sale of the property would be taxable in India as a capital gain. In case the property is held for a period of less than three years the gain so realised would be taxable as a short-term capital gain. Such short-term gain would be added to your other income, if any, in India and taxed at a normal slab rate. In case the property is held for a period of three years or more, the capital gain would be treated as a long-term gain. Such capital gain is presently taxable @ 20 per cent plus surcharge of 12½ per cent and education cess of 3 per cent thereon. The surcharge of 12½ per cent is payable in case the total income exceeds Rs 10 lakh.
Benefit to heir
Q. My father owned some property in Agra and resided therein with his family for more than 30 years. He sold the house and shifted to Delhi. The capital gain on the sale of such house was utilised for the purchase of a plot of land for which an advance of Rs 10 lakh was paid. This transaction took place somewhere in October 2006. Unfortunately, my father died in December 2006. The sale deed in respect of the said plot was eventually executed in May 2007 in my favour and I have taken up the construction of the house, which I hope to complete by January 2008. Will I be able to claim the exemption under Section 54 of the Act in respect of the capital gain arising on the sale of property held by my father in Agra? — Rajan Kumar, Gurgaon A. On the basis of the facts given in the query it is evident that there was a transfer of the house property, the income of which was assessable under the head “income from house property” and that the advance was paid by your father for acquiring a plot for the construction of a house property so as to avail the exemption allowable under Section 54 of the Act. The capital gain earned on the sale of property in Agra was chargeable in the hands of your father and on account of his death you will be assessed as his legal representative for the purposes of the tax liability arising on account of such sale. There is an old decision of Madras High court, which is reported in 4 Taxman 432 (C.V. Ramanathan vs. CIT) which does permit the availment of benefit under Section 54 of the Act in such cases. You may, therefore, claim the benefit on the basis of the said decision.
Bifurcation
Q. An agricultural piece of land was acquired by the government in 1984. Now the farmer received additional compensation/interest from 1984-2007. The total accrued interest from 1984 to 2007 was received in 2007 and the TDS was deducted on it. 1. Can a farmer bifurcate his income from 1984-85 to 2006-07 as per Hon’ble Supreme Court's judgment in the case of Rama Bai vs. CIT (1990) Andhra Pradesh as reported in 181 ITR 400 and Special Tehsildar and Land Acquisition officer vs. Dandu Sarasswatmnd and others as reported in 205 ITR 587. 2. All farmers are not IT assessees. 3. One person is income tax assessee and files the income tax return regularly. Can the assessee revise the returns in early years or not? 4. Is the total TDS credit allowed in 2006-07 “which was deducted and deposit” or can the TDS be bifurcated to earlier years. 5. Can a farmer filing IT returns from 1984-85 to 2006-07 claim refund year to year? 6. Can the farmer give arithmetical statement of early years with the return 2006-07 and total TDS claimed in 2006-07 or not? — Ranjeev Kumar, Bathinda A. The query as given refers to additional compensation/interest. There is a distinction between the two. For the purpose of answering this query it is presumed that the query is with regards to interest and not with regards to additional compensation. This is because additional compensation is treated as part of principle sum received on acquisition. The provisions applicable for such additional compensation are different and not discussed here. On this basis the replies to your queries are as under: (a) Yes, following the Supreme Court decision, interest can be bifurcated for the years for which it has been allowed to the farmer. (b) The farmers concerned will have to file the return if the interest income on the basis of such apportionment exceeds the amount, which is chargeable to tax for respective years. (c) The return can be revised if any omission is noticed in the original return within one year of the end of the assessment year. For example, the return filed for assessment year 2006-07 (year ending March 31, 2006) can be revised up to March 31, 2008. (d) It is not clear from your query whether yearwise tax deduction certificates have been issued or a consolidated tax deduction certificate has been issued. If yearwise certificates are available, there should not be any problem for seeking refund /adjustment of tax deducted at source against the income of the relevant year. However, in case it is a consolidated certificate, copies of such certificate will have to be attached along with the return for various years and reference made in such returns with regard to original having been filed with the latest year. (e) A return can be filed for any previous year before the expiry of one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. For example the return for the assessment year 2006-07 (year ending March 31, 2006) if not filed on due date i.e. July 31, 2006, or October 31, 2006, as the case may be, can be filed up to March 31, 2008, provided notice under Section1 142 of the Income-tax Act 1961 (the Act) has not been received for filing the return earlier. (f) The total amount of TDS can be claimed in the assessment year 2007-08 if the total amount of interest received for all the years is shown in return of income for assessment year 2007-08.
Investment in bonds
Q. I inherited a house property from my father more than three years ago and intend to sell the same as I am migrating to Canada with my family. I am informed that the sale would involve capital gains tax. Would you be kind enough to tell me the way in which the payment of such tax can be avoided? — Prithpal Singh, Phagwara A. You can invest the capital gains arising on the transfer of the property in the long-term specified assets meaning thereby bonds issued by National Highway Authority of India or Rural Electrification Corporation Limited. Such bonds are redeemable after a period of 3 years. There is a recent announcement made by the National Highway Authority of India regarding the issue of such bonds. The announcement clarifies that the issue will open on September 24, 2007 and the forms in respect thereof are available to the all leading SEBI registered Category 1, merchant bankers as well as in the office of National Highway authority situated at G-5 & 6, Sector 10, Dwarka, New Delhi 110075.
The writer can be contacted at sc@scvasudeva.com
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Mumbai 10th most attractive Asia-Pacific city
India's financial capital Mumbai is emerging as a major destination for real estate investors, with the city being ranked amongst the 10 most promising Asia-Pacific cities by PriceWaterhouseCoopers. Mumbai has jumped seven positions from last year to become the 10th most attractive real estate investment destination in the annual investor survey released today by PwC and US-based research organisation Urban Land Institute. Besides, New Delhi and Bangalore also retained top-20 positions on the list led by Shanghai, Singapore and Tokyo - the top three destinations in Asia-Pacific region. The response from investors towards India continues to be bullish with strong buy or hold recommendations for major cities like Mumbai, New Delhi and Bangalore across various property sectors, the report pointed out. India has been on investors radar for several years, but proven inaccessible due to government restriction that were eased in 2005 to permit foreign investments, primarily through the construction-development route, PwC's investment management and real estate sector leader Gautam Mehra said. For investment in hotel space, Ho Chi Minh City was named at the top, followed by Bangalore, Shanghai, Mumbai and New Delhi. In the office sector, Ho Chi Minh City, Mumbai, Tokyo, Bangalore and New Delhi were named top five cities. For retail property, Ho Chi Minh City, Mumbai, New Delhi, Bangalore and Shanghai were named as the top five markets.
— PTI
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Parsvnath booking orders
Mumbai: Real estate firm Parsvnath developers has said its premium township in Chandigarh has received booking orders for 220 units worth approximately Rs 325 crore. “We are quite satisfied with the bookings that we received in the first phase. More than 65 per cent of the units, worth Rs 325 crore, on offer have been booked,” Parsvnath Chairman Pradeep Jain said in a communiqué to the BSE. Out of the 359 units, which were made available for booking, 10 per cent were reserved for IT/ITeS companies. — PTI Collaboration for Cyber Park
New Delhi: Ansal Properties and Infrastructure Ltd
(APIL) has said it has entered into a joint venture with Pearl Global Ltd for setting up a Cyber Park, with expected sales value of about Rs 350 to Rs 400 crore. “The project is spread across eight acres on NH-8, the company said in a statement. It has also collaborated with Ashiana Retirement Village Ltd for developing a group housing project, meant for senior citizens, which is spread over 14 acres in Lucknow.
— UNI
Yatra to raise $211 million
London:
Euronext-listed Indian property company Yatra Capital has said it wants to raise up to Euro 150 million ($211.2 million) to finance a range of investment opportunities in India’s property market. Defying volatility in global financial markets and a cooling of investor appetite for European-listed property stocks, Yatra said it had appointed ABN AMRO Rothschild and Fairfax I.S as joint bookrunners and coordinators of a part-private, part-public follow-on share issue. The subscription period is expected to end on October 11.
— Reuters
Indian, European portals tie up
Mumbai: Real eatate portal, 99acres.com, has announced a strategic traffic partnership with Properazzi European Group SL, a property search engine from Europe. Under this partnership, 99acres.com will provide the users access to Properazzi’s index of international real estate listings and vice-versa. The partnership will also enhance 99acres and Properazzi through branding and visibility on both sites, a press note issued by 99acres stated. “India is an important growth market in the world and European buyers of real estate are increasingly turning towards it,” Properazzi’s CEO Yannick Laclau said.
— PTI
Pact with Malaysian builders
NEW DELHI: Real estate firm Ansal Properties and Infrastructure Ltd has announced its tie-up with Malaysia’s UEM Builders for developing construction and engineering projects. Ansal and UEM Builders, which is a subsidiary of Malaysia’s largest conglomerate UEM Group, signed an MoU to form a joint venture to carry out construction and engineering activities across the country. “In the proposed joint venture, Ansal would have a 40 per cent stake while the remaining 60 per cent would be with UEM Builders,” Ansal API president (Marketing and corporate communication) Kunal Banerji told reporters here.
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PTI
LVMH plans investment
New Delhi: Global luxury brands conglomerate Louis Vuitton Moet Hennessy
(LVMH) is planning to launch a $500-600 million private equity fund in India for investing in brands and retail chains. LVMH president (south, south-east and west Asia operations) Ravi Thakran said the group was also looking for a foray into luxury destinations such as spas and entertainment for which it was in talks with real estate developers, including DLF, to acquire land.
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PTI
Damac eyes India
Dubai: UAE’s leading private property developer Damac Properties is aiming to develop a substantial portfolio of overseas “master developments”, with India likely to be a future area of growth. Damac Holding chairman Hussain Sajwani says the company holds a sizeable land bank in Egypt and Saudi Arabia where it plans to unveil major mixed-use real estate developments. The company has launched 79 towers at a cost of nearly $18 billion, covering the UAE, Qatar, Jordan, Lebanon and Saudi Arabia.
— PTI
Gammon to develop land bank
Mumbai: Engineering and construction major, Gammon India, said it was looking at inorganic opportunities to fuel its future growth. “We would like to acquire stakes in small companies,” Gammon India chairman & managing director Abhijit Rajan said on the sidelines of company’s annual general meeting here. Presently, the company has a land bank of 10 lakh square feet. “The company is expanding its presence in the realty segment to reinforce both top and bottomline growth,” he said.
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PTI
Shriram partners with US firms
Mumbai: South-based Shriram Properties has said it was partnering with funds sponsored by Walton Street Capital and Starwood Capital group to develop Rs 5,000 crore integrated township in Kolkata. The project, one of the largest-scale partnering of global real estate private equity firms in India, will comprise 20-million sq ft of residential, retail, office and civic infrastructure, a press note stated.
— PTI
Brigade seeks SEBI nod for IPO
Bangalore: Bangalore-based real estate developer Brigade Enterprises has applied to capital markets regulator Securities and Exchange Board of India for an initial public offering. According to the draft red herring prospectus, the company plans to offer more than 16.62 lakh equity shares of Rs 10 each at a price to be decided through book building process.
— PTI |
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Banks are not happy with the experience they have with young borrowers (aged between 20 and 30) as they are both aspiring and ‘unruly’.