A criminal offence could be filed against builders who fail to hand over the possession of flats

Home minister R R Patil replying to a query raised by Prakash Mehta (BJP) on builders cheating buyers said “A criminal offence could be filed against builders who fail to hand over the possession of flats to buyers within the stipulated timeframe mentioned in the agreement”. Prakash Mehta had tabled a calling-attention motion to raise the issue pertaining to Vidyavihar where scores of buyers who invested in the Gammon-Nilkanth Project were cheated.

“In 2004, the company gave an advertisement for a housing project in Vidyavihar. Around 300 to 400 people paid 85% of the cost of the flats in the project. It is nearly six years and still the buyers have not got possession of their flats,’’ said Mehta, demanding stern action against the offenders. In his reply, Patil assured action against the builder. “I have asked the economic offences wing to conduct a probe in the case. Once the probe is over, appropriate action will be taken,’’ he added.

Opposition MLAs demanded that the home department should take the case seriously. Criminal offence should be registered against all those who are attached with the project and cheated the buyers, the Opposition unanimously demanded. “Even the court has rejected the anticipatory bail of the offenders. Why is the government defending such persons?’’ Mehta asked.

Source: The Times of India (TOI)

Royal Bank of Scotland’s Worli property sold for Rs 37.25 cr

Royal Bank of Scotland is said to have sold an apartment in Worli in South Mumbai for around Rs 37 crore that’s a whopping Rs 1 lakh per sq foot.The last known deal for under Rs 1 lakh per sq ft was in 2007 when a flat in NCPA apartments in South mumbai was sold for Rs 34 crore.

Royal Bank of Scotland’s property deal seems to be the country’s most expensive real estate deal.The auction for this 3640 sq ft apartment in Samudra Mahal was held a few days back.The flat is a duplex on the 19th and 20th floor of the building and comes with 2 parking spaces.The details on the buyer of this property is not known, the next nearest bid for this apartment was made at Rs 25 crore.

Mumbai city has lost over 30 million liters of water from January 2009

According to an audit conducted by the civic hydraulic department has revealed that the city has last over 30 million liters of water from January last year till date. The massive water loss has been due to damages inflicted on the pipelines.

Frequent bursts on the ageing Tansa water pipelines is a definite cause of worry,but a bigger concern is due to negligence of contractors appointed by various civic agencies.According to a senior hydraulic department engineer, nearly 60 incidents, where contractors damaged pipelines during excavation work, were reported during the period.The repair work carried out on the damaged pipelines cost the BMC Rs1.26 crore, said hydraulic chief Vinay Deshpande.

The massive water loss has been due to damages inflicted on the pipelines by “irresponsible” contractors, the audit said.The civic body claimed that one of the major problems was that the MMRDA and MSRDC contractors do not approach the hydraulic department for permission before carrying out excavation work.The four recent incidents of water pipeline bursts along the Tansa mains have led to depletion in levels at the Upper Vaitarna reservoir.

To make up for the shortfall, the civic body thus has been drawing 1,800 million liters daily from the Upper Vaitarna reservoirs since March 23. This had led to decrease in levels of water at the reservoir, which holds the key to the city’s survival till monsoon.

Prime property prices in India is likely to increase by 12-15%

In a research done by leading global property consultancy firm, Knight Frank along with Citi Bank, has forecast that the prime property prices in India is likely to increase by 12-15% in 2010. The survey showcased that the Mumbai and New Delhi realty markets held a significant level of promise for potential investors. South Mumbai and South New Delhi are the markets, which are the highest in terms of prices followed by Bangalore, Chennai and Hyderabad.

The Wealth Report 2010 Attitudes Survey, pointed out that over 70% believe that 2010 will be good year to invest in property. Pranab Datta, vice-chairman and MD, Knight Frank India said, “We anticipate that the prices especially in cities such as Mumbai and Delhi will return to the peak levels of 2008 in this year 2010.’’

Building societies in the Nariman Point-Cuffe Parade area get High Court relief

Two prominent building societies—Mafatlal Centre at Nariman Point and Maker Tower A&B at Cuffe Parade—approached the court in late 2009 after the BMC increased their property tax manifold from April 2008 onwards. In an interim order, a division bench of the court said that the notices slapped by the BMC could not be termed as “notice of demand” but were to be treated only as show-cause notices.The show-cause notice gives a chance to the society to contest it before the BMC.

Building societies in the Nariman Point-Cuffe Parade area contesting the BMC’s steep new property tax rates have got a breather from the Bombay High Court. In an interim order, a division bench of the court said that the notices slapped by the BMC could not be termed as “notice of demand” but were to be treated only as show-cause notices. A notice of demand has an element of finality which cannot be challenged (except in court) while a show-cause notice gives a chance to the society to contest it before the BMC.

Since last year, the BMC has slapped notices on building societies here by increasing their taxes by as much as five to 10 times.The Mafatlal Centre society challenged this in the court on the grounds that the notice was served without giving the society a hearing. The BMC’s counsel said that the aggrieved parties would have ample opportunity to put up their case before the BMC finalised and quantified the tax to be assessed.

“We make it clear that the corporation will not take any coercive step in the matter of recovery of tax pursuant to the impugned notices till they take a decision in the matter without further orders from the court. The petitioners are directed to appear before the authority (BMC) on March 15, 2010, in response to the impugned notices,” said the court’s interim order.

Mumbai still follows the rateable value-based system.The BMC’s assessment and collection department hiked the rateable value in buildings where offices have been given out on leave and licence.Going by the book, commercial properties are charged at an absurd 112.5% of the rent they are likely to earn.

Reference:

Times of india

Even a single flat owner can soon apply for conveyance

The state is giving final touches to the deemed conveyance rules.The much-awaited deemed conveyance rules will allow even a single flat owner to apply for conveyance even if other members of the society and the builder gang up against him/her.The rules for the Maharashtra Ownership of Flats Act once published, will allow thousands of housing societies whose conveyance is being held back for decades by builders to get a deemed conveyance within 60 days of making an application before the competent authority.

Various secretaries and chairmen of housing societies had gathered at a hall in Thakur Complex, Kandivali (E) to discuss salient features of the deemed conveyance on Sunday. Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association, said that they would empower every member of the society to apply for conveyance. As a bonafide member of the society can put an application before the district deputy registrar (DDR), seeking conveyance even if the entire society or the builder delays the process.

Once a housing society submits two to three documents like a society certificate, property card and at least one flat owner’s agreement, it is then the district deputy registrar (DDR)’s responsibility to appoint a competent authority. This officer will on behalf of the housing society get all the remaining 20-25 documents. The Supreme Court has said that the benefit of the Transfer Development Rights (TDR) will have to go to the society even if the builder has not given the conveyance, said Prabhu.

The net impact of the construction service tax would be only 3.3 per cent

As per the Budget proposal, the finance ministry has suggested that construction would be deemed to be a taxable service if the building or complex is still under construction and approval from the concerned regulatory authority hasn’t yet been granted. “The service tax and excise duty hike on cement would increase the overall cost of apartment by about 10%,” said Dharmesh Jain, managing director of Nirmal Lifestyles, a Mumbai-based developer.

Till now, for all apartments under construction, customers paid in installments based on plinth level construction and also on the progress in building activity. Banks too lent money to the customers according to the requirement of the builder. Now most developers would ask customers to pay the entire value of the building if they sought to lock in at a certain value. This would mean paying the entire sum before the construction.

Developers said the proposal could push home prices up by 10 per cent in Tier-II and Tier-III towns and 0.5-4 per cent in big cities such as Mumbai and Delhi which have higher land prices.“There is a false impression being created that prices will go up by 10 per cent but the fact is that 10 per cent service tax is levied only on 33 per cent of the value,” said the official. The net impact of the service tax would be only 3.3 per cent, since there is an abatement of 67 per cent.

Abatement scheme, under notification number 1/2006 dated March 1, 2006, says that the contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. Stung by new service tax proposals on property transactions, real estate bodies such as the Confederation of Real Estate Developers Associations of India and Maharashtra Chamber of Housing and Industry plan to approach the finance ministry to seek rollback of some proposals.

But there are other positive measures that the Budget proposes such as allowing pending projects to be completed within a period of 5 years instead of 4 years, for claiming deduction of profits, as one time interim relief.Developers have already increased prices by 15-20 per cent in the last nine months as demand for homes picked up.

Reference: business standard

BMC plans to give a rebate in property tax for adopting Rainwater Harvesting

The Brihanmumbai Municipal Corporation (BMC)- Mumbai proposes to award points to residential buildings that have adopted eco-friendly measures and thereby give an incentive in the form of rebate on property taxes for adopting Rainwater Harvesting.The main objective of making rainwater mandatory in all buildings is to recharge groundwater and augment overall water availability.

In order to give a boost to rainwater harvesting (RWH) and adopting eco-friendly measures BMC plans to give a rebate in property tax as an incentive to buildings and housing societies who set up Rainwater Harvesting (RWH) systems. The important features considered for buildings and housing societies are rainwater harvesting, grey water recycling plants, solid water management, segregation of organic and non-organic waste, creating manure from waste etc.

“There’s already a provision in the new capital Property Tax amendment, that property tax rebate will be awarded to housing societies that go green. So, we have proposed that for every ten points that a housing society is awarded, it gets a 10 per cent rebate. If it fulfills all 30 points, there will be a 20 per cent rebate given on property tax. The rules are under formulation,” said Anil Diggikar, additional municipal commissioner.

Making rainwater harvesting system mandatory in all buildings ensure that rainwater is tapped and directed to recharge groundwater or stored for direct consumption by occupants of the buildings. “Although RWH has been made mandatory for new buildings but there is no monitoring agency to track its implementation” said a civic official.

Source: DNA India

Home prices may inch up slightly in Mumbai and suburbs

Home prices may remain firm or inch up slightly in metros such as Delhi and Mumbai and their suburbs. However, bankers and realty players felt that prices at extended suburbs — such as Greater Noida and Manesar near Delhi and Navi Mumbai, along with tier-II and tier-III townships — will remain under pressure due to over supply of housing, lack of connectivity and paucity of jobs in such locations.

Niranjan Hiranandani, a leading Mumbai-based developer, said demand for residential segment is likely to increase by a compounded annual growth rate of 30% over the next five years. His caveat was that in between this period, there could be a marginal slowdown in demand. “But in the long-term, growth story is intact,” he said.

Last year banks introduced teaser home loans to boost demand for housing in a slowing economy. However, the Reserve Bank of India has asked banks to withdraw teaser loans (lower interest rate for the first two years and subsequently increased it at floating rates) from April and has already increased the cash reserve ratio (CRR) by 75 basis point. Developers and lenders feel that RBI move will impact the sector. The hike in CRR is set to increase interest cost for developers.

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State wants to develop 30 such townships in five years

The state government, anticipating that 50 per cent of the state’s population would be living in urban areas by 2014, is planning to develop new cities.Near Mumbai, these cities will be proposed along the multi-modal Virar-Alibaug corridor.The state government will encourage private residential townships spread over 100 acres and above.

The state government will encourage private residential townships spread over 100 acres and above.These townships will contain all amenities like connecting roads, sewage treatment plants and water supply will be developed and maintained by private developers.The state wants to develop 30 such townships in five years.Seventeen of these — around Pune, Nagpur and in the Mumbai Metropolitan Region like Thane and Panvel — have already got in-principle approval.

Source : blog-propertynice