REAL ESTATE
 

 

Uttarakhand on a roll 
S.M.A. Kazmi

THE much-awaited allotment of land to industrial units in various industrial estates in Uttarakhand by the state government recently is expected to give a boost not only to stagnant industrial growth but also to urban development in the state.

Realty upbeat: Industrial growth likely to fuel urban development as 57 companies get 1,000 sqm plots in industrial estates of Haridwar & Pantnagar

Since the Bharatiya Janata Party (BJP) government took over the reigns of the state in March 2007 under the leadership of Chief Minister Maj Gen (retd) B.C. Khanduri, there was no decision on applications for allotment of industrial land by various companies desirous of setting up shop in the state. The proposals for the industrial plots were invited by the state government in July 2008

At a high powered meeting chaired by Khanduri on December 22, 2008 the State Infrastructure and Industrial Development Corporation of Uttarakhand (SIDCUL) decided to clear pending cases of land allotment. A total of 57 small companies from Delhi, Gurgaon, Faridabad and Ghaziabad have been allotted 1,000 sq metre plots each in the Haridwar and Pantnagar industrial estates. The move follows clearance of nearly 100 industrial plots by the high-powered committee that include top companies like ITC, HUL and Sterlite.

The final allotment letters for new units and expansion programmes in the key industrial estates of the hill state have also been issued. All these companies were given land under the new allotment policy recently formulated by the government for Haridwar, Pantnagar, Kotdwar and Selaquie industrial areas.

The companies were kept in three broad categories. In the first category, small and medium enterprises (SMEs) were given preferences with 25 per cent land being reserved for them. The main rush for proposals was for the Haridwar integrated industrial estate. In view of the heavy rush, the committee tried its best to accommodate the maximum number of companies in the final allotment. In the second category, nearly six industries were given approximately two acres at Haridwar. In the third category, big companies like HUL were given preference, as investments were heavy.

Nearly 18 investment proposals were also cleared for the Pantnagar industrial estate. Top companies like Delta are among the Pantnagar beneficiaries. Besides, two companies each were given land at Kotdwar and Selaquie. With just fifteen months left before the state’s special industrial package providing tax benefits to industry coming ends March 31, 2010, the government was keen to generate revenue and give a much-needed fillip to industrial growth in the state.

It was expected that these new industrial units would come up soon to get maximum tax benefits under the special industrial package giving employment and fuelling economic activities. However, the development also augur well for the urban development in cities and towns close to the industrial estates. After the special industrial package announced by the union government in 2003 and open door policy of the previous N.D. Tiwari government, industry had made investment worth nearly Rs 10,000 crore in the state.

Industrial activity also gave a boost to urban development with coming up of housing complexes, hotels and malls in Pantnagar, Haridwar, Roorkee and Dehradun. Then came a period of lull and recession in the real estate business that was further compounded by the decision of the BJP government in 2007 to reduce the limit of agriculture land that can purchased by an outsider for building a house from 500 square meters to 250 square meters, discouraging outsider buyers from investing in the state.

With announcement of a new Master Plan for the planned development of Dehradun and the allotment of new plots in industrial areas, it was expected that housing and urban estate sector would also benefit. "We are hopeful that 2009 would bring in new hope for urban development in Uttarakhand," said Inder Singh, a prominent builder of Dehradun.

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Housing made affordable
Greater Ludhiana Area Development Authority to build 500 flats for Rs 9.5-16 lakh
Kuldip Bhatia

AFTER more than a decade, the Greater Ludhiana Area Development Authority (GLADA) has embarked upon an ambitious project to construct 500 one and two bedroom residential flats in Dugri Phase II, a posh colony in Ludhiana.

According to chief administrator A.K. Sinha, 350 one bedroom flats and another 150 two bedroom flats will be built over six acres in Dugri. To be constructed under a self-financing scheme, the one bedroom flat will have a carpet area of 450-500 square feet with a tentative cost of Rs 9.5 lakh while the two bedroom flats, with a carpet area of 950 to 1,000 square feet, will cost around Rs 16 lakh.

"We are making efforts to offer residential flats with top class construction, incorporating all basic facilities and latest design following current architectural trends. We had organised an architectural design competition for the flats and designs presented by Chandigarh-based Vaastu Group were adjudged best. Once the model is approved by the Regional Planning and Development Authority, further action will be initiated to get structural designs prepared and start tendering process for civil works," Sinha said.

Additional chief administrator S.R. Kler said talks were on to finalise a tie-up with a leading bank for extending finance facility to prospective buyers on easy terms. “In fact, the bank selected for this purpose will act as a virtual manager as far as the finances is concerned, right from sale of application forms to disbursement of loans based,” Kler said.

Divisional engineer V.K. Chauhan, who is overseeing the project, claimed that quality of construction would be comparable with private housing projects while the cost will be roughly half that being charged by private builders in similar localities. The authority had decided in principle to sell one bedroom flats at cost price without making a profit.

The proposed scheme is likely to come as a boon to genuine buyers. "Prospective buyers always prefer a flat in an authorised colony where all basic amenities are guaranteed, deals are free of litigations and timely construction as well as delivery of possession are time-bound. Private builders tend to cut corners in seeking mandatory permission, often fail to provide promised amenities besides being guided by other market conditions," says an established property dealer and estate agent of Ludhiana.

But private builders and estate developers are not excited. The project will offer buyers a choice and some may even put plans on hold, but with the booking date not even final yet, it may take a while before buyers return to private builders.

Said Sanjeev Aggarwal, a retired government employee, “I had a couple of opportunities in the past to purchase a plot in a colony carved out by a private property developer but my friends, who have had bitter experiences in such deals, advised me to wait for something reliable. Now that the authority is coming up with this housing project, I plan to apply. For once, I feel secure that I won’t be duped of my life’s savings.”

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GREEN  HOUSE
Best of both worlds
Satish Narula

THE ornamental value of trees was a chance finding. Most ornamental trees were studied and well-understood thousands of years ago by our sages and basically, introduced and used as medicinal trees. There is clear-cut mention of most of these trees in our scriptures. We always had them around, but with the development of cities, we had another reason to keep them very near -- aesthetics. Let us today know about some of these ornamental but medicinal trees.

Before I introduce you to some of these trees that have tremendous medicinal value, I know I am exposing them to the danger of extinction. I have always been saying that if you want to kill a tree, tell its medicinal value to the masses and they will ‘lynch’ it to remove its various parts. But I make a point of caution about the fact that the same tree in seclusion may be a pack of medicines but in cities and its surroundings, do not venture out to use any of its parts as medicine as standing in the polluted surrounding, these are laden with tonnes of pollutants, intake of which may cause deadly diseases like cancer, brain damage and paralysis.

One of the very prominent and common trees to fall in this category is Amaltas (Cassia fistula). This is one of those trees that have a complete floral cover when in bloom. The deep yellow blooms give an extended spring as the flowering takes place during March and April. At that time there is no leaf on the tree. A few cylindrical seed bearing sticks of seeds, still hanging from the previous year, deep black in colour, provide a perfect contrast with the yellow. As the temperature starts rising, the leaves start appearing and the dense canopy is complete when it is needed the most.

The tree does not grow very tall and due to its deciduous nature, can be accommodated to grow under high wires. Also due to leaf shedding in summer, its watering needs are minimal. The plant is propagated by seeds that have a hard crust, which needs scarification (rubbing on hard surface) to puncture a whole in the shell. The seed-pod is full of properties and cure for many human ailments. The seeds and the sticky gel are an excellent laxative and also used in case of worm infestation. Other parts are used as cure for ringworms and facial paralysis.

Alstonia scholaris, Saptparna, was never known to be a flowering tree but even the insignificant flowers that it bears in bunches have a strong aroma. The tree is valued for its deep shade and closed canopy. It is because of this character of the tree that it is very good for parking lots. It grows very fast and has medicinal value, too – its parts are used as sedative, liver tonic, antileprotic and blood purifier.

It was probably god’s wish that most of the trees with medicinal properties are short statured, probably to be within the reach of man. Another tree that comes in this category is the true Ashok, Sita Ashok (Saraca indica). It is the only sibling of its clan to bear deep scarlet bunches of blooms that appear on the drooping branches and have medicinal properties besides its bark and seeds. It has stimulant, blood purifier and anti-inflammatory, anti bacterial and anti fungal values. This tree also has a mythological significance.

(This column appears fortnightly)

The writer is a senior horticulturist and can be contacted at satishnarula@yahoo.co.in


The Lahura

Another tree high on aesthetics and medicinal value is Lahura (Tecomella undulata), also called Rohira. It is also a naturally medium dwarf tree that is suitable for growing under wires. There are two different species of this tree that bear deep orange-red or yellow blooms. The bold flowers are trumpet shaped and are easily visible covering the tree. This tree has historical significance, too, as there is a gurdwara in Pakistan, Lahura Sahib, named after this tree. This is also a deciduous tree and sheds leaves during summer. The tree is valued for use of its parts in syphilis and eczema, as cardio tonic and as mild relaxant.

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Valid will can’t be revoked

Q. Under the column ‘Where there is a will, there is no way out’, you have stated that a Hindu male has the right to make a will in respect of self-acquired property. You have not mentioned in case of ancestral property. Can a person make a will of his share of ancestral property and can that will be revoked or is it revocable by the real heirs?
— Resham Singh

A. I presume that the ancestral property referred to in the query comes within the category of a joint family property. In such a case, the Hindu Succession Act, 1956, provides that a co-parcener has the right to make a will in respect of his share in the joint family property. He has no right to make a will in respect of the entire joint family property.

Legal heirs, if executed validly, cannot revoke a will, after the death of the testator. It can be challenged only if the same is obtained by force, coercion or undue influence or has been executed under the influence of intoxication so as to take away the free will of the testator.

You fulfill criterion of self-residence

Q. My father owned a residential house and stayed in it till he died recently. As per his will, the house has to be transferred to the legal heirs – my mother, two brothers and I. My elder brother is the executor of the estate. The house is yet to be transferred to all of us. My younger brother and I are currently using the said property for self- residence and no portion of the property has been let out. For the purposes of filing a wealth-tax return of the estate for the year ended March 31, 2009, is it possible to claim that the property is being used for self-residence? 
— Raman

A. It should be possible to get the valuation of the house determined under the provisions of section 7(2) of the Wealth-tax Act, 1957, in the category of a property being exclusively used by an assessee for residential purposes throughout the period of 12 months immediately preceding the valuation date. The words “exclusively used” do not mean that the assessee should have actually lived in the house for entire prescribed period. What is required is that the house should not have been let out for rent or for commercial purposes. Further, the use of the house “by him for residential purposes” must be regarded as having been satisfied even if the house is used for residential purposes by those heirs who are entitled to a share in the estate and not by the executor himself. 

For real estate, register will

Q. As per my knowledge and cuttings of newspapers and magazines, I was given to understand that a will can be made on a plain sheet of paper, need not be registered and could be signed in the presence of two witnesses. Kindly throw light on the latest rules and regulations on the subject. 
— S.S. Bedi

A. Your understanding with regard to execution of will is absolutely correct. A will can be made on a plain sheet of paper and need not be registered. The signatures of the testator are required to be witnessed by two persons in whose presence the testator has to sign the will executed by him. I may add that in case the will provides for devolvement of a real estate property, it is advisable to get the same registered so as to avoid any controversies in future.

To be on safe side, buy one house

Q. I have two questions:
A father pays Rs 1 lakh as tuition fee of his children. Is the whole amount eligible for income tax rebate under section 80C?

I sold a commercial property, a SCO recently. Can I purchase two houses from the money I got as capital gain or will I have to purchase commercial property? Please explain.— 
Armaan Goel

A. Section 80C of the Income-tax Act 1961 (the Act) provides for the deduction of tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter to any university, college, school or other educational institutions situated within India for full-time education of any two children. Such deduction is allowable from the total income of an assessee. I may add that deduction under section 80C of the Act is limited to a sum of Rs 1 lakh towards various sums contributed/paid during the year by an assessee.

You would be entitled to the deduction of Rs 1 lakh provided the tuition fee paid by you is covered within the aforesaid criterion and further the deduction for any other sum which is permissible to be contributed/paid under section 80C of the Act would not be allowed.

n There is a difference in judicial opinion on the subject. It would be, therefore, advisable to buy one residential house to avoid litigation. The capital gain arising on the sale of a commercial property would be exempt from the capital gains tax provided the net consideration realised on the sale of commercial property is utilised towards acquisition of a residential house within two years of the date of sale of the commercial property. No exemption would be available in case the sale proceeds of a commercial property are utilised for acquisition of another commercial property.

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