Monday, 31 August 2015

HOME IN AN APARTMENT


The apartment culture is of recent origin and has become very popular. This type of group housing is not alien to the human culture. Earlier people used to live on riverbanks in groups sharing common facilities. 
In the early twentieth century it was known for such group housing but in a different manner. Group housing popularly known as "Vatara" was very common where small dwelling units were constructed in a single compound and families lived in perfect harmony and unison. The Vatara, used to be horizontal or L shaped with single storey buildings whereas the apartments are vertical with multistoried buildings. 

India is a vast country, having a population of more than 1000 million. Many are without shelter of their own. After independence, the successive governments have addressed this problem with various government-sponsored programmers. They targeted the poorest of poor and houses with barest facilities were provided. 

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Saturday, 29 August 2015

PROPERTY DOCUMENTS AND REGISTRATION


The Indian Registration Act, The Registration (Karnataka Amendment) Act 1975, The Karnataka Registration Rules 1965, govern the registration of documents. Every person may have to visit the office of registration for registering documents at least once in his lifetime, but provisions of Registration Act remain unknown to common public. This article discusses certain provisions, rules of registration. 

All documents do not require registration compulsorily. The Transfer of Property Act, 1882 and the Indian Registration Act, 1908 have made registration of certain documents compulsory while in respect of certain other documents it is optional. According to section 17 of the Indian Registration Act, 1908 registration of documents is compulsory if they relate to an immovable property. Similarly, Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property the value of which is one hundred rupees or more should be registered. Since no immovable property is available for rupees one hundred or less than rupees one hundred, implicitly all sale deeds of immovable property need compulsory registration

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Friday, 28 August 2015

TIPS FOR PROPERTY IMPROVEMENT


Who won't jump at a deal during which the builder offers residents of recent buildings an honest quantity to induce a refurbished flat with extra space? This is often what has been happening recently. Not solely will the flat seller receive the money however he gets a monthly rent for his temporary accommodation additionally. Once the new property is ready he gets a, refurbished, recently designed flat in place of his recent one.

This is done by builders for the aim of redeveloping the property and adding additional floors to a precise building. By marketing the additional flats they earn revenue. betting on whether or not the resident is requested to maneuver briefly or for good the builder pays the cash to this residents. For a brief shift the builder can provide cash for the opposite accommodation until reconstruction is complete. Builders typically additionally provide post-dated cheques. These ought to be accepted provided that the cash paid prior to be enough for a minimum of eighteen months of the rent. You must calculate if the total given would be adequate until you get the refurbished home.


If you're vacating the flat for good you'd get a bigger total of cash from the builder betting on however your property has been evaluated. you must make sure that the quantity is enough for you to shop for another flat once subtracting tax owed. you must request a bank guarantee so as to forestall you of being defrauded. The builder deposits this quantity with the bank that will be to a resident if the builder doesn't end the project inside the time secure. But a builder cannot redevelop a building or a society if 100% of the families residing in this don't agree for it.

Before you ultimately provide the keys of your home to any builder you must make sure that your wants for the longer term are taken care of. you must grasp the manner of moving into a improvement contract keeping in mind your wants. In these deals the resident must decide the terms and conditions. Therefore, the flat homeowners or a housing society would like the services of knowledgeable professional and designer to guide them. The professional would make certain that gift and future legal problems are tackled effectively. He helps to formulate the documents in line with the law.

Before you provide the project to any builder you must examine his log. Your designer is also able to assist you grasp if the chosen builder has finished his previous comes within the time secure and has paid the total as secure within the contract.


An designer can assist you in knowing the value of the property upon its valuation. This is often a big consider deciding the quantity offered by the builder. within the later reconstruction time the designer would be a watchdog to form certain that sub-standard materials don't seem to be utilized by the builder for construction.

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Wednesday, 26 August 2015

ADVANTAGE OF BUYING AN UNDER-CONSTRUCTION PROPERTY


Many home-seekers are skeptical about buying under-construction flats as the transaction comes with an element of uncertainty. Ready-for-possession apartments, which do not pose such problems, always command premium. However, carrying out the requisite due diligence and taking some precautions could help you land in an attractive deal, mainly in terms of the discount in price and certain other benefits.

For those buying a property from an investment perspective, an under-construction flat could offer good returns. Such investors can consider investing their money in a project when it has just been launched. Many developers offer to take the soft launch route-where the project details are circulated among a select few prospective buyers, with a discount on offer-before making a public announcement.

The investor can sell the apartment to a third party and benefit from the appreciation. The only point to bear in mind in such transactions is that they are done on the basis of the allotment letter alone the agreement is not registered and the stamp duty is not paid. However, it is a perfectly legal transaction.

The other advantage of buying an under-construction property is, obviously, the discounted price per sqft. The price of the property increases in line with the stage of completion. If a developer has launched a project before excavation, the discount could be in the region of 25%. It could shrink to 20% once which the construction is completed.

Pre-construction phase is defined as the period starting from the date of borrowing and ending on March 31 immediately preceding the year in which construction is completed. For instance, if you have taken a loan in June 2008 and the construction is completed in May 2010, the period from June 2008 to March 31,2010 will be deemed to be the pre-construction period.

Now, let's assume the total loan amount is Rs. 40lakh, borrowed at the rate of 10% per annum. If the total interest payable for the pre- period is Rs. 5lakh, 20% of the amount - Rs. 1lakh can be added to the interest component of each of the five years, starting from the year in which the construction is completed.If your house is self-occupied, the deduction on interest payable would be restricted to Rs.1,50,000 per financial year.

Also, it needs to be noted that deduction of repayment of principal amount can be claimed under section 80C only from the financial year in which construction is completed. While taking the decision on the purchase of under construction flat, keep in mind the developments likely to take place in and around the area, in terms of infrastructure projects as well as other amenities like malls, schools and healthcare facilities expected to come up in and around the area. Most important is to verify the track record, previous performance of the promoter before entering into the agreement.

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Tuesday, 25 August 2015

REALTY TO SURVIVE IN FUTURE


The growth rate of the country’s population is prodigions. The Indian population grows at a every ten years rate of more than ten per cent, naturally needs to find a corresponding number of new homes over and above the existing number of residences of the previous ten-year period. In addition to the above core need, at least ten per cent of the existing number of houses require the need for reconstruction or replacement, to stand up to the changing tastes of youth who inherit the elder generation's homes. These two factors are considered to be favourable to the growth and sustenance of Realty Sector and constitute the mainstay of Real Estate Business demand structure.


The second factor makes very little demand for additional space. It creates only demand for construction activity. Old buildings are extended within existing land area or demolished and built vertically with more space added through the means of enhanced FSI.

Obviously the need of the increased population for housing units creates demand for new land for construction. But the availability of land for new construction has been shrinking over the past few decades, which forces the Governments to enhance the Floor Space Index for construction in many major urban areas. To add to this unavoidable phenomenon, Governments both at State and Central levels have been voraciously gobbling up all available lands under the pretext of Economic Development and Industrialization.

In the fond desire of generating sustainable employment State Industrial Development Corporations and others of the kind have taken away vast tracts of land out of the market, for preferential allotment to Industries. In spite of such supportive measures, an unconscionably high number of industrial units are today lying sick, with the land and other resources invested in them becoming unproductive. In addition, a high percentage of the developed industrial plots are lying unsold with the corporations. If the prescribed price of the plots for allotment of these plots, one will be wondering why these plots are remaining unsold.


Even with a conservative estimation, it could be said that thousands of hectares of developed industrial plots in most States are lying unsold, despite the fact of ridiculously low prices at which these are proposed to be sold.There is something that does not meet the naked eye behind this queer phenomenon. There is a strong case for moratorium on further acquisition of land for industrialization until all the idle plots are allotted to deserving units.

Then we are witnessing there are the lands acquired for Special Economic Zones and Port Development. The special economic zones have run into a total failure. Everywhere there are erupting agitations against new land acquisitions. Cumulatively, all these factors join together effecting in the reduction of land available for the growth of new construction on the housing sector. Some serious steps need to be taken to address concerns of the citizens about land for their essential housing needs, which remain one of the three basic requirements for any human being.

The practical measures as mentioned above could well create a favourable situation of easing out the problem of land availability for new construction. The Policy makers while examining and formulating policy options, should keep in their minds the interests of the small dealers and facilitators. Adequate reserve land should be kept for the expanding growth of housing units which has to match the increasing population. This will forestall the future problems.

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Monday, 24 August 2015

PRECUATIONARY MEASURES BY PURCHASERS FOR PROJECTS UNDER CONSTRUCTION


There is every need to ensure that the documentation of the property proposed to be purchased, is legally valid and enforceable in Law. In case of a readymade flat or house, this process may be little bit easier, but in case of projects under construction their needs strict due diligence.

A broad guideline on the steps to be taken in right direction for this task is the following:
The first thing one should do, in case of projects that are still under construction, is to make sure that the builder has all the necessary approvals in place, without which it would be considered illegal. The first of these, is the necessary permission to develop the land into a residential complex. For such development, the Builders need to get approval from the Competent Authority of the Government for conversion of agricultural land or land specially designated for industrial purposes into land for residential area.  In case, if the builder has gone ahead without obtaining this approval, the entire project is illegal and it is very risky.    

For obtaining conversion of land, it also need several clearance from  environment  and other departments such as fire, safety, municipal administration, airport authority, telephone department, etc. In addition to these, the builder should ensure that his project does not interfere with the urban and town planning and that the entire project has unrestricted access to road and other public utility services.

Secondly, the purchaser should find out, whether thebuilder has necessary authority to transfer the undivided share of land to each flat owner and the entire plot to the Society of Apartment, on completion of the Project.

Lastly, the purchaser should never forget that there may be many a slip between the ‘blue print’ and the actual ‘final product’.In general,the developers tend to charge a premium for additional features, such as ‘swimming pool’ or ‘designer furniture’ etc. However, unless you ask the builder to incorporate all the promised features in the Agreement and make provisions for penalty in case of non-fulfillment, you stand on shaky ground.  Also, watch out for the fine print, because the builders may slip in a clause in the agreement and may claim that they reserve the right to alter any of the promised features.

As an adequate precaution, please take a look at the approved construction plans and ensure whether they match with things which were promised to you.  You can ask the builder to show you the requisite permits/approvals obtained from the concerned authorities.While the approved construction plans have to be mandatorily displayed at the construction site at all times, all the important approvals should be made available at the builder’s office. As per the provisions contained in Transfer of Property Act and Maharashtra Ownership of Flats Act, a seller is required to disclose all facts relating to the property, which include various permissions secured by him.  In case the builder refuses to do so, a prospective buyer has recourse under the same acts.


In addition to these documents, you should also take a look at the Commencement Certificate for Projects in Mumbai. As the name itself suggests, this Certificate is given to the builder to begin construction, only after ensuring that the builder has obtained all the requisite clearances.    

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Saturday, 22 August 2015

PREVENTIVE STEPS BEFORE PURCHASE OF PRE-OWNED PROPERTY


If you are purchasing an independent pre-owned property or a flat in a housing society, initially ask for the original share certificate. One way of ensuring right ownership for property, is to verify the house agreement.  To double check, you can also peruse the telephone and/or electricity bills, as they are issued only in the name of the lawful owner of property. Alternatively, you can check the housing society’s maintenance bill which contains the owner’s name and property tax details.This document will also highlight any pending charges that are due payable by the owner of the house or flat which you propose to buy. This is crucial because, if the owner sell the flat without paying his entire outstanding dues, the society may recover the same from the new owner. In order to avoid such hassles, better to ask the Housing Society to issue a No-Due Certificate or a No Objection Certificate.

Please note that any pending litigation on the property should also be a warning signal because the purchaser is legally bound by the result of the suit, and in case the Court establishes that the seller was not the rightful owner, you will have to hand over the property to the true owner who obtains a Judgment and Decree to that effect issued by the Court of Law

To check for pending litigations on the property, the lis-pendens registry available at Sub Registrar’s Office need to be verified, as it will contain the owner’s name in case any litigation is pending.

Mortgaged properties are the other lemons, you need to watch out for.  In such cases, the original documents of the property are invariably held by the concerned lending Institution.As such, in case the Seller fails to show you the original documents of the property, there is every reason  for you to be more alert.  In case the Seller claims that he has cleared the entire outstanding dues, then insist for Bank’s full satisfaction letter or original discharge letter.


Before conclusion, it is generally opined that a clear title is not assurance enough and as such one should even consider to contact previous owners, to rule out any fraudulent transaction. As a prudent purchaser, it is better to publish a ‘public notice’ in the newspaper inviting objections if any against your proposed purchase of said property.

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Friday, 21 August 2015

REAL ESTATE DEVELOPERS TURNING TO HOUSING FOR SENIOR CITIZENS

Real estate developers in the country are increasingly turning to a mostly untapped segment where demand is on the rise - senior homes - even as there's a slowdown in the overall housing market.
Builders such as Tata Housing,  Paranjape Schemes, Adani Realty, Silverglades and Brigade have started setting up specially designed homes targeted at well-to-do seniors who have enough money and might want to live independently after retirement. And, unlike old-age homes of the past, most these senior home projects are part of larger projects and townships.
"Today, builders realise that this could be a differentiating factor in their projects and could attract an entirely new market, which has been untapped so far," said Arun Gupta, chief executive officer at Age Ventures India, a private, non-profit trust that works with builders to design and manage senior homes. The growth opportunity is big - in 2012, India had 100 million senior citizens and the number is expected to double by 2030.
"India currently contributes less than 1 per cent of the global senior living industry," said Manish Kumar, managing director for strategic consulting at property consultancy JLL India, highlighting the huge demand and supply gap of the sector - and its growth potential. According to JLL India, there are around 30-35 senior living projects in the country. So, what is the facilities senior home projects offer?
Usually, one or two bedroom units; most of these homes have wider doors and bigger bathrooms for wheelchair access. Other finer details builders keep in mind include positioning grab rails at strategic places and ensuring that switch points are at wheelchair height rather than at the bottom. The apartment complexes come with facilities such as physio rooms, doctor-oncall, nurses and a common dining room if someone doesn't want to cook.
Gupta of Age Ventures said a lot of people in the 54-72 age bracket have been buying these senior homes because they want to live independently. He said Age Ventures has tie-ups with hospitals to provide medical care to seniors living in the homes it manages.
The firm has, for example, tied up with Columbia Asia Hospital in Ahmedabad where it is working with Adani Realty for a senior home project. Similarly , it has tie-ups with Artemis in Gurgaon for a Silverglades project and NH Hospitals in Bengaluru for a Brigade project. Adani Realty is building a senior home project within its township project Shantigram in Ahmedabad.
"Till now there were no service providers catering to this segment. Most facilities for seniors were run by charitable trusts and were mostly for the lower income category ," says Dipesh Roy, vice president, marketing, at Adani Realty .
Paranjape Schemes has so far developed six such projects - five in Pune and one in Bengaluru - under its brand specifically for senior living, Athashri. Company chairman Shrikant Paranjape said it will start three more projects in the country this financial year and is also reviewing three projects in San Jose, USA, to finalise one to target senior Indians living there.
Om Ahuja, CEO, residential, at Bengaluru-based Brigade Group, said many friends are coming in groups to buy assisted living homes primarily keeping in mind their retirement. "People who are in their early and mid-40s are planning for future and are investing in retirement or assisted living homes as the children will eventually settle down abroad post study," he said.Tara Singh Vachani, CEO at Antara Senior Living, which has a project coming up in Dehradun, said, "Priority for Antara is to create vibrant residential communities."

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Thursday, 20 August 2015

ADVANCE PLAN FOR BUYING A HOUSE


Ask yourself if you are sure to buy a house. Purchasing a Apartments includes many steps in a extended process. It includes both lawful and financial issues. Rather than spending pay attention to tips from family or co-workers, the desire to own a house of your own should come from inside.

You need to choose whether now is the best time spend money on a house or not. Residence assures a higher return in a industry like Indian, but you need to choose on the moment. Mortgage financial loan prices vary as per loan provider and techniques. Be sure that you can afford to take a financial loan now as the EMIs would certainly deal with your spending capacity.

Plan it in advance
You need to strategy the buy in enhance, rather than giving into rapid desire. First you need to be sure if you are purchasing house for your own housing objective or for financial commitment objective, i.e. to rent it out. The decision would vary significantly based on the objective of purchasing a apartment.Then you need to choose what type of property you would like to own – residence or residence or individual house. A lot will count on it as it would effect the price admiration of the exact property later on.

Save cash in organized manner
You must reduce expenses in a organized way to be able to down payment the down transaction. Finance from financial institutions are available with lot of ease now-a-days. However, you would still need to preserve to get the sum required as a down transaction. If you are able to pay more down transaction, then the pressure of financial loan will be less and you can acquire financial loan for a smaller period.

Savings need well organized cost management methods. Being only one lady, you have to recognize the certain expenses from your total per month income. The optional expenses should be channelized into per month saving choices like set continues to be and bank account. You can also spend money on equipment like common funds and Unit Connected Insurance Plan (ULIP) to get preferred tax treatment within a short period of time.

Know your requirements
If you are purchasing house for housing objective, then be sure of your specifications. Keep factors like neighborhood, facilities, industry value and possible value admiration later on. Rather than purchasing a nice looking house, you should see that the position has easy connection to your office. Resell value gets a boost when you buy a house at a position where there are chances of upcoming facilities development.

Bangalore advocates

Safe locality
Being only one lady, you may have to face unwanted attention from naughty elements of the community. You need to be careful about selecting the area of the property. Examine the cops history of the area and the neighborhood before determining to buy the property. Also, have a look at the structure of the property effectively so that you can rest confident of the precautionary features.

Related costs
Paying the down transaction and per month EMI are the primary price you will have to keep while purchasing a house. However, there are other relevant expenses that you must keep in thoughts while purchasing a house. These include servicing expenses, enhancement expenses, servicing price, public prices and taxation,etc. Also, broker expenses and bills like water and electric bill should also be kept in thoughts.

Legal documents

Do not forget to confirm the lawful records before purchasing the exact property. If possible, then continue with the buy with the help of a broker. It would create factors easier for you. Verify the records given by the designer effectively, to create sure that there are no legalities involved with the exact property.

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Wednesday, 19 August 2015

GENERAL POWER OF ATTORNEY


Power of Attorney is one of the documents which is being executed most extensively pertaining to the transactions involving transfer of properties, irrespective of modes of conveyance. The main reason being inability of the person, either the transferee or the transferor to be present at different place at the same time. In order to complete such transactions, in his/her absence, General Power of Attorney is executed, authorizing another person to do acts or certain acts on his/her behalf. Such an instrument empowering a specified person to perform such act in his absence is termed as General Power of Attorney, as envisaged in the Power of Attorney Act 1882.

The instrument of Power of Attorney is based on the concept of Law of Agency, wherein the Principal, i.e., the person who executes Power of Attorney, authorizes his Agent, i.e., the person in whose favor such Power of Attorney is executed, to do all such necessary acts specified in the Power of Attorney on his behalf and further ratifies such acts of the Agent and the said concept has been recognized under the statute thereby giving legal sanctity.

Competency of the Parties:
The following are the mandatory requirements before executing Power of Attorney:
Majors: It is necessary that both the Principal and the Agent must have attained the age of majority because contract entered between two parties, wherein, either of the one is a minor, is not recognized under Law. Hence, it is very important that both the parties should be above 18 years of age.

Sound Mind: It is also important that both the Principal and the Agent must be of the sound mind since the contract with the person of unsound mind does not bind the parties to such a contract.

Types of Power of Attorney:
There are two types of Power of Attorney. They are:
·     General Power of Attorney: General Power of Attorney gives wide power to the agent to do various acts on behalf of the Principal, without any specifications.

·    Special Power of Attorney: Special Power of Attorney is executed in those cases wherein the agent is empowered to do such acts specified in such Power of Attorney. In this kind of Power of Attorney, the power given to the agent will be revoked as soon as that particular act for which the power of attorney is executed, is performed and once such an act is completed, Power of Attorney does not subsist.

Sub-delegation of power:
The general principal is that an agent can neither sub-delegate his powers to a Sub-agent nor can appoint another power of attorney. The said principle is well expressed in Latin maxim “Delegate non protest delegate”, which means a person who is delegated with certain powers cannot delegate such powers to a third person. But, section 190 of the Indian Contract Act provides certain exceptions, wherein the agent can appoint sub-agent. However, such sub-delegation must be done in connivance with the Principal, who has to ratify all the acts done by the agent on his behalf. The following are the circumstances under which Sub-delegation is permitted:

·       The nature, custom of the trade is such that it requires the appointment of sub-agents.The recitals in such power of attorney authorize the agent to sub-delegate his powers to another agent.

Registration and Notarization:
Under Section 17 of the Registration Act, if any transaction involves transfer, assignment or creation of right, title and interest over the immovable property and the value of such property is Rs.100 or more, then registration of such documents is mandatory.

As regards execution of Power of Attorney, if the principle assigns right, title and interest over the immovable property in favor of the agent and authorizes the agent to execute any document on his behalf, in such case registration of the power of attorney is preferable. However, if the agent is delegated with the powers which does not involve any kind of assignment or transfer of interest over the immovable property, then power of attorney notarized before Notary Public or even before the Magistrate, is considered to be authenticate documents.

Thus for example, if a person executes Power of Attorney, authorizing the Power of Attorney Holder to execute sale deed on his behalf before the proper registering officer, then it is advisable to get such power of attorney registered. On the other hand, if Power of Attorney is executed, authorizing the power of attorney holder to prosecute or defend the suit, then GPA can be notarized before Notary Public. However, the Court shall presume that a power of attorney executed before and authenticated by Notary public or any Court, Judge, Magistrate, Indian Consul or Vice-consul or Representative of the Central Government was so executed and authenticated. If the Power of Attorney is not signed and sealed as required under law, it is nothing more than a waste paper.
In either of the case, each page of the document, whether registered or notarized, has to bear official stamp of the Sub-Registrar office or Notary Public and must disclose the registration number, Book number and signature of the Sub-Registrar or Notary. If the same is notarized, then, apart from the above, appropriate Notary Stamp has to be affixed.

Outside India: Section 85 of the Indian Evidence Act applies equally to documents authenticated by Notaries Public of other countries. However, the same has to be done by the designated Officers. So any power of attorney executed outside India shall be authenticated by notary of such country or Indian Consul/Embassy.

Stamp Duty:Power of attorney, executed and notarized in any country in favor of Power of Attorney Holder, residing in India, has to be duly stamped within four months from the date of receipt of the same and the stamp duty in such case has to be at the District Registrar’s office. However, if the same is executed in India, the same has to be executed on the document sheet, duly stamped. Stamp duty in either of the case will be Rs.100- if the same is executed in favor of one to five of them and if power of attorney is given to more than five persons, then the actual stamp duty payable is Rs.200/-.

Cancellation of G.P.A:Power of Attorney can be cancelled by either of the parties to the said contract. However, the same has to be done by giving proper notice to the other, clearly mentioning the intention of the person to revoke the said Power of Attorney and notice to that effect has to be given to the public. However, the Principal cannot cancel the agency after the agent exercises his powers partially. If the power of attorney is given only for the specific purpose and that purpose is fulfilled or if either of them dies or becomes unsound, then such an instrument automatically gets cancelled. Nevertheless, proper notice is a must.

If the agent himself has any interest in the property which is the subject matter of the agency, then the same cannot be cancelled unless the agent agrees.

Representation of Owner:In Bangalore, there are many instances wherein it is seen that the Power of Attorney Holder, in his individual capacity, representing himself as the owner instead of the actual owner will convey immovable property, which act does not confer any kind of right over the purchasers since the document itself is void and not binding on the parties. So it is very important to verify as to whether the conveyance has been made by the GPA Holder, duly representing his Principal/Owner.

In the recent times, with the growing boom of real estate in Bangalore, the instrument of General Power of Attorney is playing a major role, not only in regard to sale or purchase of the property, but also in all other related fields. However, abundant caution has to be taken at the time of executing Power of Attorney and also cancellation of the same because the same can also be used as a weapon involving acts of fraud or conspiracy to misguide and cheat public.

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Tuesday, 18 August 2015

GUIDANCE VALUE


For registration of properties before introduction of Guidance Value by Government, the stamp value fixed was on the basis of discretion by the Sub-Registrar. This discretion power was misused and corruption was rampant for undervaluing property. There was also a procedure for appeal to the deputy registrar on the value fixed by the sub-registrar, which power was again misused for reasons known. Government used to lose lot of revenue by undervaluation of properties by the property owners in collusion with the officials of the registering authorities.

It was a good proposal of Government in fixing theguidance values for both lands and buildings avoiding the discretion power of registering authorities and under valuation by property owners. Another advantage of the guidance value was arriving at the property tax in the Self- Assessment Scheme of the BBMP / local body on the basis of guidance values fixed for various areas of the city.

Guidance value is also useful in Akrama -Sakrama Scheme for fixing the fine amount for regularizing unauthorized sites and buildings, and violations from building sanctions. This scheme was withdrawn after agitations from the residents welfare organizations and law abiding citizens against the scheme, and agitations also by property owners involved to reduce the fme amounts which were heavy. There is also a case pending in the High Court against the scheme. The bill sent by the Government was returned twice by the Governor. The first time it was returned stating that the scheme will encourage unauthorized developments and building violations. The observation second time was to submit the bill only after disposal of the case pending in the High Court. BBMP /BDA which are responsible for allowing unauthorized constructions and building violations are keen to introduce the scheme to get huge amounts as fine for regularization.

Periodical revision of Guidance Value may be done once in two years to update the values according to the increase in market values, latest trend in potential for development ,etc., and to get more revenue. The aspects mentioned in this article may be considered while revising the Guidance Value. As far as possible, there should be no element of discretion by the officials of the registering authorities to avoid corruption and under valuation. The details of Guidance Value should be clear to the investor to plan the investment. The procedure for appeal should be simple and quick.

Hope the Revised Guidance Value will be clear and simple, the values are almost equal to the market values, and useful to the investors in real estate.

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Monday, 17 August 2015

PERMITS FOR CONSTRUCTION OF BUILDINGS ACCOUNT FOR HALF OF CONSTRUCTION COST: WORLD BANK OF REPORT

PERMITSFOR CONSTRUCTION OF BUILDINGS ACCOUNT FOR HALF OF CONSTRUCTION COST: WORLD BANK OF REPORT




                                                                                                   
       According to a report published by theWorld Bank, in Greater Mumbai, the various Permissions for construction works of the Buildings account for almost half the cost of construction.  It is further reported that “the cost of construction permit in Greater Mumbai is 46.05 percent of the cost of construction.” The report also highlights that it takes 27 steps and 162 days to obtain a construction permit.  For almost each of these steps, the developer or the land owner has to pay fees for obtaining construction permits.

        While the report has already prompted the State Government to re-engineer and simplify the process of obtaining the construction permit, the Brihan Mumbai Municipal Corporation is yet to take steps to bring down the cost of obtaining such permits. 

        Earlier, the Chief Minister of Maharashtra State declared that his Government had plans to extend the regime of allotting additional floor space index-ratio of built up area to total plot area, which exists in the suburbs of Mumbai to Thane and other areas in the Mumbai Metropolitan Region.  Builders present at the meeting when the announcement was made sought to decrease the premium which is charged on the basis of prevalent ready reckoner rates.

        The Anti Corruption Bureau Chief had earlier referred to rampant corruption while issuing building permits in Mumbai.

        Acting on the Chief Minister’s directives, the Brihan Mumbai Municipal Corporation had issued fresh guidelines to “simplify the construction permit process and reduce the time by eliminating certain procedures”.  It also allowedself-certification for declarations pertaining to property tax, pest control and debris removal at the under-construction site; while allowing third party certification for internal road layout, internal sewerage systems, parking layouts and vehicle movement within the plot, storm water drain and water requirements.


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