Construction Company told to compensate consumer

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Consumers who are lured by newspaper advertisements in which builders promise free sites, bumper specials, two wheelers, gold and silver articles, often get an unpleasant surprise after they have spent their hard earned money on such schemes. Mr. I. S. Sanaullah became a member of a scheme offered by Classic Land Developers in Mahalakshmi Layout, to buy two sites in their Balaji Township.

He also entered a monthly draw scheme of the firm and won the first prize of a Maruti Omni Van. It was delivered to him in January 1997. But the vehicle was in the name of one Mr. Madhava Rao, the partner of Classic Land Developers and it was hypothecated with Wipro Finance Ltd.

In 1997, Mr. Sanaullajh was informed by Wi pro Finance Ltd. that Classic Land Developers has not paid 8 installments and the vehicle would be seized and this was also informed to Mr. Madhava Rao. The vehicle was repossessed by Wi pro Finance Ltd. After complaining to the firm, the vehicle was given back to Mr. I.S. Sanaullah but the registration was not transferred in his name! In 1998, Wipro Finance Ltd. informed the complainant again that Classic Land Developers has not paid has not paid six installments and the vehicle was again repossessed by them!

In spite of many reminders, the firm did not provide an alternative vehicle as promised and Mr. Sanaullah finally complained to the Consumer Disputes Redressal Forum, Bangalore Urban District, Classic Land Develop- ers told the forum that since the transaction took place in 1995, the complaint was barred by time and also that the consumer forum had no juris- diction to entertain the complaint.

Forum President M N Shankar Bhat and Member D Nagarathnarnma ruled that it was clear that the Maruthi van was given to the complainant under the bumper draw but it was snatched back from him because of the default on the part of the opposite party in paying the monthly amounts. This was deficiency in service. It ordered Classic Land Developers to pay up Rs.72,OOO to the complainant along with Rs.2,OOO as costs within four weeks of receiving the order.

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DOCUMENTS COMPLUSORILY REGISTERABLE

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All the documents to various transactions need not be registered with 

Register of Assurance. The transfers of Property Act, the Indian Registration Act have made the registration of certain documents compulsory, and others are optional.

Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property value of which is one hundred rupees or more should be registered. If the value of immovable property is less than one hundred rupees, the registration of sale deed is not mandatory. But this is for academic interest only, since, the value of any immovable property will be generally more than one hundred rupees. Even the value is less than one hundred rupees; it is advisable to get the deed registered.

Incase of lease, the Section 107 of Transfer of Property Act 1882, prescribes that, lease of immovable property "from year to year" or for a term exceeding one year or reserving a yearly rent must be done only by registration. The phrase from year to year denotes, refers to a continuous lease from year to year, that is, where the landlord have no option to terminate the lease at the end of the year without notice.

Similarly the phrase, "reserving yearly rents" means that the lease has no definite period, but the annual rent is determined. The word means that the lease should run year after year or atleast more than a year.

In general any lease in excess of year and above should be registered. Section 17 of Indian Registration Act 1902 deals with the documents, which require registration compulsorily.

1. A document of gift of immovable property. The gift as everybody knows, it is given on consideration of love arid affection and no monetary consideration is involved. So any gift deed irrespective of its value needs registration.

2.All documents non-testamentary

a) Which create interest, right, title in immovable property the value of which is more than one hundred rupees.

b) Which extinguishes (cancels) any right, interest title in the immovable property value of which is Rupees one hundred or more for present or future.

c) Which declare, assign, limit or restrict the interest, title, right in immovable property, value of which is Rupees one hundred or more.

3.All non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions pertaining to right, title, interest in the immovable property.

4. All non-testamentary documents transferring or assigning any decree or order, award of a court, which affect the interest, rights and title in a immovable property the value of which is Rupees one hundred and above.

The documents may create, extinguish, assign, declare, limit or restrict the interest, right title in the immovable property for the present or for future, but if the value of such immovable property is Rupees one hundred or more, they need to be registered.

Testamentary means, relating to the WILL and non-testamentary means documentary not connected to a WILL. As you know, the WILL is a document, which deals who has to succeed to the assets, properties of the person, who writes the WILL (testator) after his death. WILL is not compulsorily registerable.In short all documents pertaining to a immovable property, if its value exceeds Rupees one hundred, it must be registered.

Indian registration Act empowers the State Government to exempt the registration of any document of lease the period of which does not exceed five years and annual rent does not exceed Rupees fifty.

The important point is what is the effect, if the document, which is compulsorily registerable, is not registered, Section 49 of Indian registration Act deals with this situation. It states clearly that such non-registered documents do not convey transfer legally valid title to the transferee and such documents are not admitted as evidence of any transaction affecting the property referred in the document. Thus, the purchaser will not get legally valid title by a unregistered sale deed.

However, it also provides an exemption, that such unregistered documents may be received as evidence in a suit for a specific performance under specific relief act or as evidence of past performance of the contract as per Section 53A of transfer of property Act or in any other related transaction, not required to be affected by a registered instrument. It is always advisable to register any document connected with immovable property as it creates a permanent record, which are reflected in encumbrance certificates. Further such registered documents have higher value of evidence than unregistered documents.

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ASSESSMENT YEAR, PREVIOUS YEAR, PERSON, TYPES OF INCOME

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Section 2(9) of the Income Tax Act 1961 refers to the assessment year.

ASSESMENT YEAR:

This is a period of 12 months commencing from 1 st April and ending on 31 st March 2003. Thus it is spread over to calendar years. The assessment year 2003-2004 means and covers the period from 1 st April 2003 to 31 st March 2004. The importance of the assessment year is that which law is to be applied for computation of Income; allied procedural matters and the rates to be applied will be as per laws in force as on first day of the relevant assessment year. During the assessment year the income returns filed for the previous year will be assessed by the department.

PREVIOUS YEAR:

Section 2(34) of the Income tax act 1961 defines the previous year. It is a financial year immediately preceding the assessment year. This covers 12 months spread over two calendar years commencing from 1 st April and ending on 31 st March.

The previous year for the assessment year 2003-2004 is 2002- 2003, starting from 1 st April 2002 and ending on 31 st March 2003. But it need not necessarily cover 12 months in case income earned for the first time from any source; but always ends as on 31 st March. If one get a salaried job from 1 st Oct 2002, the previous year for salary income starts from 1 st October 2002 and ends on 31st March 2003.

Often, the assessment year and previous years are confusing. Simply note that your income of this financial year (2003-04) will be assessed and taxed by the department during next financial year (2004-2005), which is called assessment year.

PERSON:

The word person has a wide meaning under income tax act which is defined under section 2(31) it includes:

1.An individual

2.A Hindu undivided family

3.A company

4.A firm

5.An association of person or a body of individuals

6.A local authority

7.Every other artificial judicial person (Trust, deity)

RESIDENTIAL STATUS:

Residential Status determines the scope of taxable income. The status has to be determined as per the procedure prescribed in section 6 of the income tax act. Residential Status are broadly of three types:

1.Resident and Ordinarily resident

2.Resident but not Ordinarily Resident

3.Non-resident.

HEADS OF INCOME:

Income of any kind will be included under anyone of following categories;

1.Salaries

2.Income from House Property

3.Profits and gains from business or profession.

4.Capital gains

5.Income from other sources.

This classification is very important, since an income to be included under a particular head cannot be included under another head. Rents received from house should be included under income from house property but not under income from other sources.

Income from house and capital gains are relevant in case of house property. Section 22-27 deal with income house property and section 45-55A deal with capital gains.

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Which city to live?

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People are nature's children, yet we create cities, highly unnatural assemblies of brick, concrete and steel - I had read this statement some time back but I do not recollect which urbanologist said this. A great majority of the people who live in the city are fettered with pressure of work. They have very little time to think of the way they can live. Yet sometimes, when one is caught in some tense situations, like a massive traffic jam or getting up at two in the morning to collect water from the municipal system one thinks, is this town the best place to live?

Recently, two national weeklies, "India Today" and "Outlook - Money" carried articles giving the findings of the studies they carried out to arrive at the rankings of the places to live in. The article in India Today was on "Which are the Best and the Worst states of India" on the basis of quality of life and work. The article in the other weekly was on "Which are the Best cities to live in." For the readers of the Real state Reporters the studies are of immense value in making decisions about the places to live in, work or to invest. Earlier too there have been studies, but they were mostly confined to some specific purposes. Also they were based on hunches, expert views or interviews. For past few yearsa few foreign firms in real estate leasing like CB Richard Ellis Ltd, Jones Laing Lasalle have been regularly doing surveys to know about investment climate and trends in major metropolitan cities, mainly for their clients, since their post liberalization arrival.

Confederation of Indian Industries got a survey done recently but that was to find out most favourable climate from the investment point of view of industries. Rajeev Gandhi Institute of contemporary tudies too, I am told, carried out a study but that was to find the market condition, size and potentials. In both the studies, Delhi beats other metros hands down. But study conducted by OUTLOOK is different. It is to find out which city is better to live. By whom, may we ask? By all means. Market researchers have a particular jargon to defme this. They say most research done by them is for See A & B of the population. They are the people who had good education, enjoy steady income, their children go to English medium school, they love comforts, like to spend and dislike hassles. The rich have a place in every town. The poor have to eke out a living anywhere, any slum, any city where they can find a place to rest their head. The parameters for the study and the ranking were cushy jobs and income opportunities, finance network, prices of commodities of daily need, consumption levels, good housing, and safety from crime, transport, entertainment, pollution and weather. Quite a bagful.

The study considered 55 cities. The article goes on to describe how the data was collected and what weightage was given to each one of them. These are of interest to market researchers not for us, the see A & B crowd. Both S M Krishna and Chandrababu N aidugaru may explode in rage as neither Bangalore nor Hyderabad could get to the top. The pride of the place goes to Chandigarh. The credit, of course, goes to Le Corbusier and his Colleague Jenre, its designers who laid it out with a great vision of the future and the spirit of Punjabi who has a Zest for living and wants to live well. For living well a Punjabi can go to any extent and if required disciplines himself. That's why they form the bulk of army.

A westerner whichever assignment he is given makes through job of it. He places a great importance on planning. He collects substantial amount of data. The designers of Chandigarh studied climate, topography, natural wealth of the region, habits and idiosyncrasies of the people who are likely to inhabit the city and accommodated all of them. First and foremost I must mention Corbusier took a pledge from the government that there will be no personal statues in the city. Not stopping at it he also got it engraved in stone and got it embedded in the city hall. He knew what a great idolaters we are! One has to go around our Vidhana Soudha to observe how statues are springing up on the lawns. I have seen also statues of Anna, Gandhi, etc., in dilapidated conditions in many of the southern towns, definitely eyesores in busy places.

He has laid out the city in grid pattern with very wide arterial roads and got them paved fully at the start. He made sectors of habitation look inwards i.e. no house or building has a front on the arterial roads. He knew how we encroach roads at the front. Bazaars were tucked into the heart of the sectors so that the chaos remains deep with in; Created green strips all along the city and forbade vehicles in them; Placed parks along natural valleys and fenced to prevent slums springing along them; dammed a seasonal rivulet to create a lake for recreational purpose. He also undertook a pledge from the Government that there will be no polluting industries in or near the town.

He encouraged private initiatives in beautification efforts. Otherwise how could Mr. Nekchand, a mere class IV employee of PWD create a world famous Rock Garden to the Lake? I was fortunate to be arrison Engineer of Chandhigarh Cantonment, which was still in initial stages of development, and by Nehru's order we had to ensure that everything planned there was to conform the Chandigarh planning egulations. This provided me with many opportunities of interacting with the town's planning team.

One could learn from the vision these masters have. Le Corbusier was known for his preference to vertical growth of the city. But as for as Chandigarh is concerned he has spread it far and wide and has given it low vertical growth, most appropriate for hot and dry climate. The top ten cities for good living according to survey are Chandhigarh, Chennai, Kolkatta, Hyderabad, Mumbai, Bangalore, Bhopal, Goa, Pondicherry and Ahmedabad. The six metros in the study are, Kolkatta, Mumbai, Chennai, Delhi, Bangalore and Hyderabad. Let us confine to Metros and see how Bangalore fares in this group.

Among the Metros the first place goes to Chennai in the overall ranking for all the parameters. Bangalore is 5th out of 6. Not something to boast of for people who dream of it as Singapore of India. This should not dishearten us but spur us to greater thinking and action. However, how Bangalore ranks with respect to each parameter should be interest to us.

For jobs and income Bangalore is at the top followed closely by Chennai and Hyderabad. For banking and finance net work, Kolkatta comes first followed by Mumbai and Bangalore. The quality lag between successive rankings is big. While Kolkatta hogs 86.4, Mumbai is 69.7 and Bangalore is 30.8. Anyone who has been to a Bank in Bangalore cannot but agree with the ranking. The leisurely dejaview attitude of banking staff is a class by itself. It takes anything between 15 minutes to half an hour to take out cash, twice that time to deposit. It . takes 6 weeks to get an ATM card after handing over the application.

This is my experience with a busy branch of a nationalized South based bank. Again in the prices, which matter to See A & B, which takes into account fruit and vegetable prices, education, medical fees, wages for services like maids and . servants Bangalore ranks fifth. The ranks of the rest of the Metros are Kolkatta, Mumbai, Chennai, Hyderabad and Delhi. I am sure the researches might not have taken into account the quality of service and the dependability of the service providers. If we take into consideration quality of service I might place Mumbai at the top. I have lived in almost all Metros except Secunderabad.

In consumption, Hyderabad tops the ranking; Bangalore is at the bottom. It should come as no surprise knowing the life style of Reddy's. But one wonders how Chennai could be two ranks above Bangalore. May be sober and prudent Madarasis have taken to conspicuous consumption in the footsteps of their leader, Amma Jayalalitha after her birthday bashes (or was it adopted son's marriage?). In housing too Bangalore is last but one, Kolkatta being at the bottom of the heap. This is no surprise, as the laws are antiquated, the cost of construction being one of the highest (cement costs nearly 1.3 times what it costs in Mumbai), t~e registration charges were the highest till a month ago, and landlords have the habit of providing minimum facility and expecting maximum rent. No built in furniture, ceiling fan, etc. In Delhi all these come along with the built space.

Here I must remind, once again, that the survey covers only Upper middle class. How does the housing statistics for the city as a whole look? Bangalore is deficient by 71,000 dwelling units. Less than 25% fthe population has access to household connection of both water and sewerage. About half the water connections get water once in two or three days. Bangalore has 289 registered slums. According to Karnataka Kolegeri Nivasagala Samyuktha Sanghatane, 66% of the dwellers do not have access to a toilet. Toilet complexes built under Nirmal Bangalore are unaffordable. The pipeline made by civic authorities in the slums is substandard and they are clogged, leaking and overflowing.

But, we the See A & B can turn a Nelson eye to these urban festers and walk past them covering our noses. In education too, Bangalore is 5th• Hyderabad and Chennai take the first and the second place. May be there is an overabundance of educational set ups in Bangalore, but the quality is abysmally low. Reader may recall, a decade ago, there used to be advertisements for vacancies, especially in engineering, with the rider, that Bangalore University graduates need not apply. In Health facilities, Bangalore is 3rd and Chennai stands first. Surprisingly, Bangalore is ranked first in safety and Delhi the worst. Police commissioners may note     and department       may rejoice. In transport Bangalore ranks the last and Hyderabad occupies the first place.

Thanks to tunnel vision of our city planners and their ostrich like attitude towards MRT we may still stay in the same place for quite some time. In pollution Bangalore is 4th and Chennai is the least polluted. In weather, of course, Bangalore is first. One sincerely would like to believe that city planners do not take the credit for it. If anything the credit should go to Almighty and Kempegowda for founding the city.

Another surprising result is Bangalore's ranking in entertainment. It is at the last place (sixth). Bangalore some time ago, boasted of highest number of cinema halls in the country. With so many gayana sabhas, western music concerts, pubs, racecourse with yearlong betting facility it's ranking should have been higher. The article also carries interviews with one or two prominent citizens of each- city. As far as Bangalore is concerned as could be guessed, they have gone over to Mr. Nandan Nilekani, the Infosys chief and taken his opinion. In his opinion it is the most livable city in India, has excellent climate, quality of life and a sense of warmth. It has great sense of community and high degree of inclusiveness. He also says it can do with better public transportation and town planning. What else can Head of Bangalore Agenda Task Force can say? He has said what is expected of him to say. But when I attend the World Environment Day, World Habitat Day and World Clean Air Day organized by Institution of Engineers I get a different feeling.

In these celebrations we hear of the drinking water scarcity, the widening gap between haves and have-nots and the high levels of Carbon mono oxide, Carbon di-oxide, Sulphur and suspended particles.Actually the place to live in depends upon what key factor one is looking for which changes from time to time, age and from need to need. Even in the case of employment it depends upon the speciality, hetherit is IT, Finance, Stock market, Real Estate, Construction, etc. Once one has the decent employment one starts looking for other factors.

The strength of the outlook survey is that it provides ranking for 55 cities on key factors. Thus it provides a data base on which a person can narrow down his choice and then make further enquiry. As the article has said most of us fantasize about the distant hills, balmy air, raising kids in the lap of nature, away from the hustle bustle. It may not always be possible, even after retirement. With the absence of reliable social security and old age care, one may have to live with or near children unless they are all in USA or in some such distant land.

Which direction Bangalore has to take if the living and working conditions have improved? It is very difficult question. There are no packaged answers. But there is a great unanimity among urban planners that the migration should be drastically reduced. Migration accounts for half the growth of the city. It is only possible if employment opportunities of similar standards are created elsewhere in the state. The old concept of satellite town development near the city has failed miserably. New Bombay, Yalhanka and Kengeri can be quoted as examples. Ultimately they are absorbed into urban conglomeration and add to longer vehicular movement. Towns and cities far from Bangalore should be developed.

Cities which already have some infrastructure in place need to be taken up as new cities are a costly gamble. Karnataka fortunately is blessed with many cities which hold promise. Mysore, Tumkur, harwad, Mangalore are some of cities one can think of. Of them, Mysore and Dharwad are blessed with mild climate. Accessibility to Bangalore and to other global destinations, if ensured Mysore could rival Bangalore in becoming an attracti ve growth centre. Doubling of railway line between the two cities, its electrification and upgrading the present Bangalore - Mysore highway to 6 lane dual carriage way, improving the water supply of Mysore city are some of the investment friendly schemes.

We are told that Mr. Aziz Premji, Chairman WIPRO is so enamoured by Mysore that he would not mind developing its airstrip. Both the centre and state could think of private participation in all these projects including Railways.Completion of the Railway line between Mangalore and Hassan, inclusion of it in the newly created railway zone, pri vatising of power generation and - distribution in the city, improving the municipal infrastructure, improving the aerodrome are some of the measures one can think of. Dharwad has a history of neglect dating back to the old Bombay province.State reorganization has not brought any noticeable development. The blame rests with the politicians of the area.

This apart what else to improve Bangalore? I would go with three simple suggestions put forward by Bittu Sahgal, well known environmentalist. He suggests government to be facilitator for more housing, beefing up of water services, health services, education and transport. Develop the rural interconnectivity with good roads, restore the health of lakes, detoxify the lakes, and encourage non polluting cottage industries.

For those who are looking for far from the maddening crowd retirement around Bangalore, one would recommend Hosur, specially the township Titan is creating there. Hosur was known as Little England for its climate, is now well connected by road from Bangalore, and has good educational facility, healthcare centres have developed in Electronic City.

Titan township is designed by well known architects and town planners, well laid out, has plenty flandscaping and greenery, round the clock electric and water supply and a decent crowd. And lastly no pollution.



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Recommendations of the Supreme Court Panel on forest land

Nearly 5 lakh residents living on the periphery of theSanjay Gandhi National Park (SGNP) like Thane, Mulund and Vikhroli on the eastern suburbs and malad, kandivili and Poisar in the western suburbs were affected by a High Court verdict last year notifying their land. Some huge housing complexes as well as settlements in existence for over six decades were declared ‘illegaql’ in the verdict.

Parkash Paddikal of Mulund-based NGO Hillside Residents Welfare Association (HIRWA), said, “Based on the CEC’s current suggestions and the Net Present Value for these lands, we have calculated that residents with OCs may have to pay about Rs 8-10 lakh to regularize their homes. Considering the pressure we have beenunder for so long, that seems an acceptable suggestion.”

As for residents without valid OCs, the CEC has agreed to consider their cases after their applications with details are duly filed, Paddikal said. HIRWA, along with the NGO Pelople’s Power of Nation, has been fighting for the residents’ rights for long. That seems an acceptable suggestion.”

As for residents without valid OCs, the CEC has agreed to consider their cases after their cases after their applications with details are duly filed, Paddikal said. HIRWA, along with the NGO People’s Power of Nation, has been fighting forthe residents’ rights for long.

Rajendra Manglurkar, joint secretary of the state Revenue and Forest department, said, “The illegal forest issue has been hanging in balance for the past 34 years and we want it to be resolved once for all. If the CEC’s solution is acceptable to thepublic, we are more than happy with it.”

RECOMME DATIO S

On-time afforestation charges for forest land residents of pre-2006 buildings possessing valid occupation certificate or completion certificate Between 10 and 15 times afforestation charges for residents who have booked flats in buildings under construction 20 times charges for areas which have been bookedfor development but work has not yet begum or is in initial stages.

No afforestation charges for farmers owning land in non-agricultural regions and government buildings in private forest lands. The Issue came to limelight in 2002 after the Bombay Environmental Action Group filed a petition in the Bombay High Court over encroachment on forest land. In 2005,the government told the HC that there were encroachments on private forestland. While HC ruling went against residents and builders, residentsassociations filed a Special Leave panel was formed.

A Central Empowered Committee (CEC) has been appointed by the Superme Court on the forest land issue which is headed by TV Jaikrishna and the Committee is reported to have visited. Thane, Mulund and Vikhroli on December 30, 2008.

MARKETING TECHNIQUES

KOLKATA-BASED Eden City Projects has come up with a new scheme for its residential projects, which requires an applicant to pay only 15 percent of the cost on allotment and the remaining amount as monthly installments two years later, on getting the physical possession of the flat.

“Book now and start paying in 2011”, seems to the buzzword in the realty space.

Explaningthe scheme, Biswadeep Gupta, General Manager said, “In the scheme calledEmpower all one has to do is to fill up the prescribed application form withrequisite booking amount, which is not very high. Pay 15 percent of the total value on allotment and sign a home loan agreement with the developer’s home loan partner (which could be HDFC, ICICI or someone else) and start apying the rest of the money as equated monthly installments (EMI) only from 2011 onwards, after the developer actually gives physical possession of flats.

An increasing number of developersare coming up with similar schemes, which is just another name for discount, withoutactually reducing the price of property.

It means one has enough time to save up for a house. People who pay rent would be spared from the burden of paying monthly installment also, and no interest would be charged for the interim period either. Eden City Projects was one of the first to start the scheme when slowdown set in. Others such as to pay Rs 2.24 lakh as booking amount and start paying EMI from 2011. Similarly, for a three-bedroom flat of 1,236 sq ft, whose price is Rs 22.57 lakh, one has to pay a booking amount Rs 3.38Iakh, he said.

Ruchi Realty Holdings, the realtyarm of Ruchi Industries, has also come up with a subvention scheme. Shivam Asthana, vice- president of Ruchi Realty, said his company has teamed up with HDFC to offer this subvention scheme. Interestingly, the developers in all such cases are bearing the burden of pre-EMl interests. For all practical purposes, therefore, it is all but a heavy discount offered to customers in a different format.

        Displav boards on mortgage lands

                                 BombavHigh Court issues Notice

The Bombay High Court has sent notices to RBI and others to respond to public interest litigation (PIL) that sought the court's directive to banks to put up signboards on mortgaged lands on which construction was being undertaken

A division bench of Chief Justice and Justice Dhananjay Chandrachud was hearing PIL filed by one Rajendra Thacker against RBI, Syndicate Bank, Housing Development and Infrastructure (HDIL) and Enigma Constructions, which issued a brochure under the brand name Rustomjee Estate. The brochure, however, did not mention that the land was partly mortgagedto a bank.

The petitioner's lawyer Sumedha Rao said: "We want banks to put up signboards stating that the land has been mortgaged. Also, the banks should publish a list of properties on which they have a mortgage or a charge." The petitioner's contention was that if the land's title was in dispute, the builder cannot 'convey' good and marketable title of the flat to owners unless the litigation over the title ends. In such cases, the buyers may get cheated of their rights in the property for which they have paid full consideration.

Ms Rao, further urged thatthe builders may make it clear in their advertisements that land was mortgaged.

Consumers court orders: Developers cannot hold on conveyance deeds

In a series of significant court orders that might came as arelief to thousands of housing societies languishing without a conveyance deedthe consumer court recently held that a developer can no longer hold on toconveyance on the grounds that he has to carry out further construction on theplot. More than 80% of the housing societies in Mumbai do not have the conveyance deed for their building, the document transferring the plot to the housing society or the flat purchasers. Most developers do not execute the conveyance deed as they want to exploit the redevelopment potential of the plot or any additional construction rights on the plot in future.

In three recent cases that had come up before the consumer court, developers argued that their rights to any open space or further development will be retained by the developers. The court not only ruled in favour of the society in each case but also slapped a heavy penalty on the developers for defaulting on conveyance.

In Prithvi Enclave Society verses Prithvi builders, the court recently asked the developer to execute the conveyance within four months failing with he will have to cough up Rs.2000/-per day of the delay. According to one of the residents, the society was formed in 2001 and for years the developer didn’t bother to either get an occupation certificate for the building or execute the conveyance deed in the name of the purchasers forcing the society to move the consumer forum. The court held that unless the developer subm its specific building plan approved by the municipal corporation, he cannot with hold conveyance to the society. The consumer court has also ordered the developer to pay sum of Rs 12.13 lakh to the residents.

Similar orders were passed in Silver Arch Spring Society versus Sneha builder and in Pleasant Palace Society versus Jain builders. Incase of Silver Arch Spring, the developer has not only been asked to shell outa certain sum as penalty but also has been ordered to pay interest onregistration charges collected from the society.

Just last year, the Maharashtra Ownership of Flats Act was amended so as to make it mandatory for the developer to execute the deed within four months or the residents can apply for a deemed conveyance with the competent authority. However, till date not a single file has been cleared under the amended Act.

According to property lawyers unless the state government simplifies the procedure for deemed conveyance, it will remain only on paper. “Right now residents have to submit 36 documents in addition to running frompillar to post to get the deemed conveyance. The recent court orders are important, in that they make it clear that developers can’t use flimsy excuse of wanting to build further on the plot for not executing the conveyance deed.

How to recover property when it is unified and subdivided with adjacentproperty

A owner of a plot in possession of the property for more than 15 years and with proper documents, applies for a fresh computerized Khata certificate. Much to his shock, in reply, he gets a notice from the Revenue department saying that his property is already unified with the adjacent property and also subdivided and new pattas issued to the new owners. What does he do to recover his property? The case involving B. Ullasavelan and the Collector of Kancheepuram went like this. Mr. Ullasavelan purchased the land measuring 50cents and was granted patta in 1991. He was in possession of the property and had been paying the land tax. In 2007, he applied for encumbrance certificate from the period between 1981 and 2007 and obtained the certificate. When he subsequently applied to the Tahsildar for a fresh computerized patta in his name, he was shocked to receive a notice.

Not only was his application rejected, he was told that his land measuring 50 cents had been unified with adjacent property and subdivided. In addition, pattas were granted in respect of those sub-divisions in favour ofother individuals.

Mr. Ullasavelan immediately submitted an appeal to the Revenue Divisional officer with a copy to the When no notice was issued to the purchaser who lawfully purchased the property, it amounts to deprivation of his right to property.

Collector and gave a complaint to the commissioner of Police. He also filed a writ petition to quash the proceedings of the Tahsildarand direct the tahsildar to cancel the unification of the land and subsequentsubdivisions. He also prayed that a computerized patta be issued to him.

Hearing the arguments and going through the records, the Court observed that the petitioner had valid possession of his property and the chitta and adangal register carried his name till 1988.

It also observed that on perusal of the relevant records, the property was wrongly included in the subdivisions and the tahsildar’s order was passed without any notice to the petitioner. Therefore, the court ruled that the manner in which his subdivisions were made cannot be sustained and the order issued by the tahsildar is exfacie illegal and arbitrary exercise of powers.

A direction was issued to the respondents to issue computerized pattas in the name of the petitioner within a period offour weeks from the date of receipt of a copy of the order.

Ratio Decidendi

“When no notice was issued to the petitioner before unification and subdivisions are made in the property lawfully purchased by the petitioner, it amounts to deprivation of his right to property. Hence the order passed without affording any opportunity amounts to facie illegal and arbitrary exercise of power and liable to be quashed.

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REAITY SECTOR TO GROW 40% BY 2010

The Rs. 10,000/- crore Indian real estate industries is all set to grow at a rate of 40% by April 2010, according to builders and international property consultants. This is owing to the recent dip in propertyprices in certain metros by 40% to 50%. It has also led to increase ininquiries for affordable properties from 60% in January 2009 to 100% inFebruary-March 2009.

According to Lalit Kumar Jain, President, Promoters Builders Association of Pune (PBAP) and vice-president Confederation of Real Estate Developer’s Associations of India (CREDAI), by April 2010, the ongoing affordable housing schemes would be sold completely in all metros due to dip in property prices. Post April 2011, there would be a severe supply crunch. Also, real estate prices would rise again as any new construction due to high land prices, infrastructure and service tax issues. Those who start developmentwould be able to complete projects only by 2013.

During Q4 2008-09, property prices have come down from Rs 8,000 to Rs 3,500 per sq ft in Kurla, Mumbai. Thane has witnessed a drop from Rs 5,000 to Rs 3,000 per sq ft. Similarly, prices in Virar has nosedived from Rs 3,000 per sq ft. Similarly, prices in Virar has nosedived from Rs 3,000 to Rs 1,800 per sq ft. Other cities like Delhi, Bangalore, Pune, Chennai, too are witnessing increase in inquiries and sales concersion to a limited extent. According to Pawan Malhotra, Managing Director and CEO Mahindra Lifespaces, there is a 300% increase in enquiries by end buyers. Apart from droppingprices, what is necessary is personal negotiation. Everest Builders have soldabout 400 affordable apartments within 48 hours in Thane in February 2009. There is a requirement of 4-5 lakhs affordable homes in Mumbai, whereas only 40,000 flats are available of which 80-90% would be sold out by April 2010. Apart from Mumbai, such as Delhi, Bangalore, Pune, Chennai too would join the race in selling out most affordable flats by April 2011.

According to industry experts, real estate market currentlycontributes only 1.6% to india’s GDP, as compared to 30% as registered duringthe financial year 2007-08. Inquiries for properties has started increasing since February-March 2009 which has lead a fair conversion of flats in Thane, Bhandup, Vasai, Virar, Dombivali as these localities has close railway connectivities. Evershine Builders has sold around 400 flats in 48 hours in Thane.

Similarly, other leading builers such as Akruti City,Mayfair Housing, Evershine Builers, Lokhandwala Builers have all set visions ofbringing in rising demand that matches supply of properties as was seen duringthe financial year 2006-07.

Lodha Group, India’s premier luxury real estate developers has launched Casa Bella, a leading affordable integrated township project in Dombivali, targeting the middle class segment. The township will be spread over 125 acres and Cas a Bella will be built over 40 acres as an integrated residential township with 3,500 residences under the first phase of development.

There is already a visible and escalating response for affordable housing. Developers will have to increasingly develop the ability to respond to the current market dynamics rather than follow an obsolete agenda of business expectations.

Market picks – UP lor Resale properties

Chennai has always been considered as a good resale market for residential properties. Good value for money, ready-to-occupy status and locational advantage has always attracted buyers to second-hand flats. This trend has been on the rise in recent times. This trend has also brought to light the various issues that come with buying them.

A few weeks ago a resale apartment fair was held by HDFCLtd. The response to this resale initiative was very good and more than athousand properties were on resale and it is reported that the realtorsassociated with them are busy closing the deals.

In the present market conditions, many buyers do not want to wait for construction of the house. So HDFC brought together the realtors concerned and facilitated the resale by providing loan facilities. Most of the buyers wanted property in the city limits in the price range of Rs 50- 70 lakhs. But properties available for resale in the city limits are in the range of Rs 1.25 to Rs 2 crores. The market slowdown has made the task of finding clients for new and upcoming apartments more difficult for many banks.Tapping thepotential for resale of property has become a necessity for the banks andbuyers may be able to gain from the development. The merits of buying a houseon resale include lesser price and location within city limits.

The demerits of buying such houses are possible deviation from the approved plan, internal problems among the members of the residents association, including legal proceeding and absence of opportunity for the buyer to assess the quality of construction.

Technical valuation of a property on resale normally calculates depreciation at 1.5 per cent per year. Around 75 percent of properties on resale are ‘delinquency flats’. The registration charges are higherfor resale apartments as it is decided on the guide lines value of the totalproperty whereas in a new apartment, the charge is arrived at only based on theundivided share of land.

However there were no delinquency flats among the property on resale during the recent initiative of HDFC. Brokers continue to say that the market is favouring the buyers. As market prices of new flats are gradually reducing, price of resale flats should also follow suit soon. Buyers analyse the aspects such as location, quality of construction and track record of the builder in the process of resale. The buyers not showing interest in properties on resale in outlaying areas.

The majority of buyers showing interest in properties on resale are end-users and the investors are not opting for purchase of properties on resale. Many properties on resale belong to speculators who investedin the property a few years ago and planned to sell the property at a higherprice soon after the construction got over. They wanted to sell the property as quickly as possible fearing a reduction in the prices. With rentals not increasing to match the EMI, speculators are finding it difficult tomaintain the property.

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ABNORMAI UPWARD REVISION OF STAMP DUTY FOR AGREEMENTS TO SELL IN KARNATAKA

Recently, the Governmentof Karnataka has imposed stamp duty on agreements to sell at 0.25 [point twofive] percent. The revised rates are effective from 1^st April, 2009. Thus, with this revision, the stamp duty payable for an agreement to sell of the value of the property of Rs. 50,00,000/- would be Rs.12,500/- whereas before this revision the optimum stamp duty payable was only Rs. 200/-.The present rate of stampduty would heavily burden the purchasers of properties which is considered tobe abnormal and unfair when compared to the stamp duty levied for suchinstruments in the neighboring States. In the State of Tamil Nadu, the stamp duty payable on agreement to sell in only Rs.0/-irrespective of the amount of sale consideration. Therefore, the Government of Karnataka may reconsider this matter keeping in mind the suffering encountered by the purchasers on account of global economic recession and revert back to the pre-revised pattern of levy of stamp duty on slab system with optimum levy of Rs.200/-

The important amendments introduced under the Karnataka Act No.9 of 2009 are as under;

(i)                 Agreement

Art. 5(e)- If the Agreement or Memorandum of an Agreement relating to sale of immovable property where in part performance of the contract and possession of the property is not delivered stamp duty payable will be at 0.25 [point two five] rupees for every one hundred rupees or part thereof on the market value equal to the amount of consideration.

(ii)               Developmentagreement

Art. 5(t) – If the Agreement or Memorandum of an Agreement is relating to construction or development or sale of immovable property including a multi unit house or building or unit of apartment or flat etc., by a person having a stipulation that after construction or development, such property shall be held jointly or severally by the person and the owner or lessee, as the case may be, of such property, or that it shall be sold jointly or severally by them or that a part of it shall be held jointly or severally by them and the remaining portion part thereof shall be sold jointly or severally by them, the stamp duty payable in such cases will be at One rupee for every one hundred rupees or part thereof on the market value of the property or the estimated cost of construction or proposed construction or development or proposed development of property as the case may be, or on the consideration for such transfer whichever is higher, provided that if proper stamp duty is paid on a power of attorney executed between the same parties in respect of the same property under Article 41(e), (ea) and (eb), then stamp duty under this article shall be rupees two hundred.

Award:

Art. 11 – In respect of any decision in writing by an arbitrator or umpire, not being an award directing a partition, on a reference made otherwise than by an order of the Court in the course of a suit, the stamp duty payable shall be as are levied for a deed of conveyance under article 20 (1) on the amount or market value of the property which is the subject matter of award, whichever is higher.

Sale Deed

Art. 20 In respect of deed of conveyance, the stamp duty payable will be 6 percent instead of 7 percent. In addition to this, the purchaser shall have to pay surcharge and ccss on the amount of stamp duty.

Duplicate copy

Art.22 In respect of counterpart or duplicate of any instruments, chargeable with duty and in respect of which the proper stamp duty has been paid (i) if the stamp duty with which the original instrument is chargeable does not exceed five hundred rupees, the stamp duty payable shall be same as payable on the original and in other cases the stamp duty payable shall be rupees five hundred. Thus, the maximum stamp duty payable in respect of counterpart or duplicate of any instrument will be
five hundred only.

Gift

Art.28 In respect of Instrument of gift not being settlement or will or transfer where the donee is not a family member of the donor the Stamp duty payable shall be same as are payable to a conveyance deed.

Where the donee is a member of the family of the donor the Stamp Duty payable shall be Rupees one thousand. The term 'family' includes husband, wife, son, daughter, daughter in law, brother in law, grand children father and mother

Rental agreement

Art.30 In respect of Lease of immovable property including under lease, sub lease or agreement to let or sub let whereby such lease, the rent is fixed or fine or premium or money advanced or security deposit is paid or delivered 

(i)                  Where the lease is for a term not exceeding five years - the stamp duty payable shall be one rupee for
every one hundred rupees or part thereof on the total amount of average annual rent and fine or premium or
money advanced or security deposit payable under such lease

(ii)                Where the lease is for a term exceeding five years but not more than 10 years the stamp duty payable

shallbe two rupees for every hundred rupees or part thereof on the total amount ofaverage annual rent and fine or premium or money advanced or security deposited.

(iii)               Where the lease is for a term exceeding 10 years but not more than 30 years the stamp duty payable shall
be four rupees for every hundred rupees or part thereof on the total amount of average annual rent and
fine or premium or money advanced or security deposited.

(iv)              Where the lease is for a term exceeding 30 years or does not purport to be for any definite term, the stamp duty payable shall be same as are payable for a conveyance deed under art.20( I).

(v)                Where the lease is in favour of family members the stamp duty payable is Rs.I 000/-.

Power of attorney

                Art.41 (e) - when power of attorney is given for consideration and or when coupled with interest and authorizing the attorney to sell any immovable property the stamp duty payable shall be same as are payable to a conveyance deed under article 20(1) on consideration or on market value of the property whichever is higher.

Art. 41(ea) - when given to a promoter or developer for construction or development or sale of immovable property including a multi unit house or building or unit of apartment or flat etc., by a person having a stipulation that after construction or development, such property shall be held jointly or severally by that person and the owner or lessee, as the case may be, of such property, or that it shall be sold jointly or severally by them or that a part of it shall be held jointly or severally by them and the remaining portion part there of shall be sold jointly or severally by them, in such cases stamp duty payable will be at One rupee for every one hundred rupees or part thereof on the market value of the property or the estimated cost of construction or proposed construction or development or proposed development of property as the case may be or on the consideration for such transfer whichever is higher

Release deeds

ArtA5 (a) Where the release is not between the family members –

The stamp duty payable shall be as are payable for a conveyance deed under Article 20(1) on the market value of the property or on the amount or the value of the claim renounced or consideration for such release whichever is higher.

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The Role of Technology in Infrastructure

There was a time when punching machines were looked upon as cutting edge technology but now with the electronic bar code scanners the use of technology in infrastructure has progressed immeasurably. At that time technology was made up mainly of mechanical equipment that required continual supervision by humans and tended to be unreliable when at its best. Today infrastructure technology has undergone total automation and that has become the standard. Greater efficiencies and savings in cost for companies that employ these technologies have come about. A main role is played by IT in infrastructure for tomorrow's work spot which is becoming more automated than ever.

As today's scenario is extremely competitive infrastructure needs to be streamlined and standardized for the way in which applications, business  processes and services are delivered. The realization has come to several companies that this key aspect of their business is an important contributor to their operations costs. Therefore technology in infrastructure is no more a luxury but an essential part of it because it accomplishes reduction in cost.

This realization has a classic example in the introduction of building automation systems that totally control and monitor different processes in the building. All that an employee needs to do is to swipe his ID card and the system registers his presence. From then on everything from the switching on of the corridor lights to the AC in the workplace happens automatically. Changes in the workspace are monitored by motion and heat sensors and lights and other electrical appliances are automatically switched off when not in use. At least 12-15 per cent of the utilized power is saved as a direct result in a big organization of over 60 people. Reduction in maintenance costs and reduced pollution are some of the other benefits that ensue from these systems.

The increasing adoption of automated workplace management tools is another example of IT in infrastructure management. Employees in a typical large organization are always moving as they join new groups and projects going to new stages of responsibility. The space manager traditionally would go to the desk location, make an entry in the security register, inspect the workstation and give the keys of the work spot to the employee. In the same way the telecom person would allot a phone and the IT team would allot a computer to him. Through this process 4-5 assignments could be done in a day by one person. The need for creating a more efficient solution to deal with this task caused the evolution of automated work- place management tools or asset management software. Facility managers would be helped by these tools to automate an interactive floor map and assign the employees to it with their equipment. The use of such a solution was reduced by many user-friendly features. With the coming of this a single person is now able to finish about 20 relocations in a day. The FM is enabled by extra value added features to give valuable information that could be used to forecast future trends and plans according to it. Flawless integration with other systems and databases such as Building Automation Systems and HR database improve its functionality. 

Another thrilling new development that has made the transition from theory to reality is Biometrics. This technology has already been taken up by big US companies for protecting information that is critical to the mission from unauthorized personnel. Server rooms and such areas that are crucial to global operations can be accessed only through following stringent security protocols including retinal scan and different biometric tools. 

Information technology is not the only technology involved in infrastructure. From mechanical to architectural, a wide variety of other disciplines are encompassed by it. New trends that could save facility managers another rupee and also contribute to the workplace are continually being looked out. As long as these two goals are accomplished they would gladly adopt any solution. 

To illustrate how other disciplines are used by facility managers a good example is the shift from the 'dedicated spaces' concept to the 'flexible office space' concept. Following the technique of allotting dedicated spaces the company would have to assign an employee with his own workspace, canteen space and dedicated meeting rooms to tackle his needs. Around 30-35 per cent more space than necessary would be used by the company by going according to this process. This is something the company can do without seeing the cost of real estate.

Architectural precepts are utilized by the flexible workplace idea to reduce these costs by decreasing the activity space needed for employees. The use of flexible furni- ture and wiring together with the idea of reserving space is advocated by the concept (the employee has to reserve his space-workspace, canteen space or meeting rooms before he wants to use them in a given period of time) to reduce needed activity space. The success of this concept is further augmented by new technologies such as wireless networking.

Other ideas such as layered enclosures with dynamic light- direction louvers and high visibility glass have assisted in the optimal use of daylight through out the year that has resulted 10 more cost savings. 

A significant reduction in their costs is being achieved by organizations with the help of technology but they need to emphasize the fact that technology is not a solution for all ills. A company needs to fully assess the need for such solutions before investing money in new technology. If they do not do these little will be done by technology to reduce costs and it may be increased instead. The need must first be studied by the companies and then the relevant solutions should be adopted to tackle that requirement to utilize infrastructure technology in an effective manner. If space pooling is the right approach, for instance then it may not be useful to spend on space reservation tools and then get GSM/IP converged gadgets to provide flexibility to the employees. 

At times a simple method such as employing one key receptionist with mobile phone/s who can take calls from anyone, anytime and confirm a space to the requestor by looking at her spread sheet, is a more affordable and flexible answer. 

The usual workplace is being reshaped by the evolution of technology. Technology is playing a much greater role from reducing costs to making our offices more comfortable. The advantages gained by using technology rightly outweigh the costs incurred in getting it. The imperceptible advantages of taking up technology besides cost, like employee comfort and productivity are all in its favor. Before long you may be going to work and getting a retinal scan and having the system take care of all your needs.