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The Hindu : y>

Basant Betons, based in Bangalore, deals with concrete products and has been supplying outdoor paving material for corporate office space and gated communities. With years of manufacturing experience behind them, promoter Suresh Patil has launched a massive state-of-the-art project for expanding the operations.

Located at Harohalli Industrial area, the modern plant is capable of producing a variety of paving products including a range of value-added material for visible décor. The technology and plant provided by Masa AG of Andernach, Germany, has the facility to produce large quantity of engineered hollow and solid blocks and novelty products for landscaped areas.

Masa’s technology has enabled Basant Betons to unveil high-strength products with multiple facilities to treat and to produce colour-blends and also shot-blast when required. This technology will enable the company to further consolidate its position in key markets of India, said Mr. Suresh.

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The Hindu : y>

I bought a CMDA-approved plot in Chennai. I got the EC and the sale deed too. I mortgaged the plot with SBI. Is patta mandatory? What is the consequence if I do not apply for patta? What’s the procedure if I have to get one?

Ram

Our panellist, R.L. Narayanan replies: It is advisable to obtain a Patta. Though not mandatory for dealing with the property, it is a good document to have, as it basically indicates lawful possession.

It is likely to have a topo plan attached, which will give the sketch and dimensions of your property. It is also crucial in proving your possession if any issue relating to possession arises.Property advice

I want to build two-storey residential-cum-commercial complexes by hiring a builder. I need advice on controlling the builder.

Zaheer

Mr. Narayanan replies: You have to enter into a contract with the builder or the contractor. There are many matters to be incorporated in such a document for monitoring and controlling the situation and providing for rights and obligations of parties. Engage an advocate for this purpose.Re-registration

In a recent issue of The Hindu PropertyPlus it was mentioned that re-registration of property was not required and a settlement deed would suffice. If a son has a property and if he intends to change it to his parent’s name, will settlement deed be sufficient or is re-registration required? I would like to know the charges that are involved for registering the settlement deed.

Name withheld on request.

Mr. Narayanan replies: It is not clear as to what is meant by “Re-registration.” However, once a settlement deed is duly executed and registered, then the same will come into effect as per the terms and conditions contained in the deed. However, this should be a valid transaction.

There is no question of any re-registration and all records can be normally mutated on the basis of a duly and validly executed…More

The Hindu : y>How comfortable it is, finds out RANJANI GOVIND

— PHOTO: MOHAN SRENIVASANLake’s influence: Natural bodies too require regular maintenance.

Would you consider living near the lake an advantage, or a disadvantage? Well, going by its geographical placement, naturally it is considered a gain, but if you are one of those unlucky ones to have your neighbouring lake see some dirty, polluted and filthy ambience, it’s just your annoying fate! For, in Karnataka, although the Government has taken steps to restore and maintain several hundreds of the remaining lakes, the sheer work, responsibility and money required to keep them tidy, isan uphill task. That the local body has to consider it a duty towards its electorate and society in general is something that needs a forum discussion, given the resource crunch that coffers face for infrastructure projects.

But let’s come back to living in and around the lake area. How ‘cool’ is your stay and how edgy is your cost factor? Says Tirumala Naidu of Garadi Apartments living close to Yediyur lake, “When I bought the flat 14 years ago, nobody spoke of its proximity to the lake, nor did we think we were benefited. Only six years ago, when the Government decided to renovate the lake area and make it usable for laid-back relaxed visits, did my apartment gain higher rents. Today, I hear my apartment fetches a good price, 20 per cent more than the usual flats located away from such bodies.”

If that’s a point to be noted, Rajaram, living in an individual house on K.R. Road, believes that even the road was re-laid and made more usable for better real estate scenario. Also, Yediyur Lake was spruced up with walking pathways and lights.

But what are the disadvantages? “Ask me,” says T.A. Pai living in the first floor of an apartment directly facing the Yediyur lake at Yediyur. “It’s okay to live…More

The Hindu : S. VISHWANATH

There is a cost involved in collecting water, treating it and pumping it to reach households and therefore there is a price to be paid for it

At first glance, it is fairly obvious that water should be priced. The argument that water is nature’s gift and should be free, though still frequently made, no longer holds water. There is a cost involved in collecting the water, treating it and pumping it to reach households and therefore there is a price to the water. Institutions have to recover this price if they have to remain financially afloat and upgrade or extend their services.

Making a pricing decision is not only purely a financial decision but is also a political and social decision as it rightly should be. Making sure that those who cannot afford to pay for water are not deprived of it is a socio-political issue. Such major decisions therefore are left to the institutions that provide water at city scale. What about the layouts and apartments which manage their own water? Should they go in or pricing and, if so, how?

On the outskirts of our cities have sprung up many layouts and apartment blocks which source and manage their own water. Usually, this would be from borewells and sometimes water is brought from private tankers. Water costs are a significant component of the common amenities maintenance cost that people who reside in these places have to pay. The first process is therefore to understand the true cost of water and what is being recovered from the resident users. Placing meters for water and electricity at all borewell sources is the first step to understand the per unit cost of water and its actual consumption. Metering at each individual site and flat will also determine the amount of water being consumed by the end user. An increasing block tariff can…More

The Hindu : N.C.S. RAGHAVANARVIND RAGHAVAN

A study of the important provisions of the Benami Transactions Act in relation to their legal implications on property transactions

As part of a series on ownership rights under different legal relationships and entities, we have taken up the study of private trusts governed by the provisions of the Indian Trusts Act, 1882 (hereinafter referred to as the “Act”)

A discussion on private trusts governed by the provisions of the Indian Trusts Act, 1882 will not be complete without a study and discussion of Sections 81, 82 & 94 of the Indian Trusts Act, 1882 (now repealed) and the provisions of Section 281A of the Income Tax Act, 1961 (now repealed) which have been replaced by the provisions of the Benami Transactions (Prohibition) Act, 1988 (hereinafter called the Act).

These repealed provisions dealt with “benami transactions” without prohibiting them, but they only tried to identify the real owner and the benami owner in these transactions. These provisions came up for review before the Law Commission which felt that these provisions must be repealed and they should be replaced by an independent legislation which will prevent, prohibit and punish these benami transactions and the parties involved. The Law Commission, after making a detailed study and after examining a lot of informed views and opinions of the public, came to the conclusion that these transactions were carried out at the behest of unscrupulous persons so as to acquire properties in the names of benamis with funds supplied from ill-gotten wealth and tainted funds (to avoid deletion and punitive actions). It is in this background that the Benami Transactions (Prohibition) Act, 1988 was enacted to come into effect from May 19, 1988 in all States, except Jammu and Kashmir.

The main highlight of the aforesaid enactment are as under:

A “Benami Transaction” has been defined under Section 2(a) of the Act to mean a transaction in which…More

The Hindu : y>On the anvil is a Golf Village spread over 602 acres on the outskirts of Mysore. A look byR. KRISHNA KUMAR

The slump in the real estate rates has not stopped property developers from exploring concepts that are exotic to Tier-II cities such as Mysore whose growth has seen a slowdown and investments taken a hit in recent months.

Though this has led to a sort of mismatch between what is on offer by property developers and what the end-users want, the city is witnessing a rash of announcements luring potential buyers of high-living in exotic locales.

So, on the anvil is a Golf Village spread over 602 acres on the outskirts of Mysore being developed by Skytop Builders Pvt. Ltd. of the Sastry Group. The golf course is being designed by Swan Golf Designs U.K. and the architects and master planners for this project are M.S Arch Group from Dubai, according to the promoters. The 18-hole golf course complete with clubhouse, training centre, a residential school, boutique hotel, hospitals, malls will, of course, be supplemented by premium plots, gated community living in villas.

The project was cleared by the State-Level Single Window Clearance Committee (SLSWCC) and recommended to the Karnataka Industrial Areas Development Board (KIADB). It was formally unveiled recently with ace golfer Jeev Milkha Singh as its brand ambassador. But it will take at least 3 years for the project to see completion, according to the promoters.Tallest building

While Skytop is projecting its new baby as the first of its kind where residential quarters will face a golf course, Brigade Group is promoting what it calls Mysore’s tallestapartments.

While the builders are confident of a revival in the market, there are other issues at stake which may put the brakes on fancy projects.

A majority of the investments were made on data and analysis during the boom period when the real estate rates skyrocketed and there…More

The Hindu :

Read on, if you are going to buy a house.

Step 1: Once you have decided to purchase a property, first plan for finance meticulously, including how much you can pullout from your savings and liquid investments and what could be the loan amount required. Please consult your financial advisor (a qualified chartered accountant) or the manager of your bank to assess how much loan you may get. You can also reach some of the nearest bank branches or Home Finance Companies to have first-hand information on your loan eligibility. Please see that the repayment instalments will not be a burden not only as of now, but for the long repayment tenure.

Step 2: Once you have zeroed in on a property, collect a set of copies of property documents and approvals from civic authorities and invariably seek legal opinion from a reputed advocate who has good exposure in real estate matters. Once your advocate gives the green signal, approach a civil engineer or an architect who is familiar with the area to seek the soundness of the property and its fair market value. Insist on valuation certificate in writing.

Once you are satisfied that the property is legally and technically sound, you negotiate on the sale price directly with the owner of the property, not with any representative. If your advocate/engineer can accompany you, it is better as you would be able to negotiate properly and at the same time your advocate/engineer can glance through original property documents.

Step 3: On finalising the property, normally the vendor (owner) would seek a huge amount as advance. Pay him/her a token advance and only against executing sale agreement on requisite stamp paper (Rs. 200 if executed in Karnataka), pay higher amounts. The sale agreement needs to be prepared by your lawyer and may be approved by the vendor/his lawyer.

If you are buying a property from a builder,…More

The Hindu : K. SUKUMARAN

Sickness in the real estate sector needs to be treated

All kinds of illnesses are to be treated and sickness in real estate sector is no exception to this universal truth. While prevention is better than cure, once the symptoms of a disease is noticed, it is required to be fully examined for prescribing appropriate dosages of medicines. Disproportionate dosages may not only delay or disrupt the process of cure, but also lead to adverse side effects. With these fundamental principles of life in mind, let us look into the ‘stimuli’ packages relating to the real estate and infrastructure sectors, particularly the second package unveiled by the government and the Reserve Bank in the aftermath of the global economic meltdown.Contents of the 2nd ‘stimuli’

The package announced on January 2, 2009, includes the following:

• Key interest rate cuts by RBI, 50 basis points in CRR, 100 basis points in repo and reverse repo rates. These reductions are intended to reflect in the banks’ lending rates ultimately.

• Liberalisation in the External Commercial Borrowing (ECB) norms such as permitting development of integrated townships as an eligible end use of funds under the approval route and removal of cost ceiling and interest rate cap. The Foreign Institutional Investment in rupee-denominated corporate bonds is to be increased from $ 6 billion to $ 15 billion.

• Permitting Non-Banking Finance Companies (NBFCs) to borrow for funding of infrastructure projects exclusively from multilateral and bilateral institutions under the approval route.

• To raise Rs.10,000 crore to refinance bank lendings for infrastructure projects.Industry response

mbining fiscal and monetary measures is a good strategy, which will correct the imbalances and also restore business confidence, according to Amit Mitra, Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI).

Too little for the export sector, according to A. Saktivel, Tirupur Garment Exporters’ Association’s long-time head.

Providing additional liquidity to the banking system…More

The Hindu : y>What better option if they not only simulate wood in their appearance but also pack in a few added benefits, asks NANDHINI SUNDAR

MULTIPLE LOCKS: The door comes with a steel frame and hence needs to be fitted while the construction is in progress.

With the trend increasingly leaning towards green options in construction, the recyclable potential of the materials used becomes an important factor. So is the use of alternatives to wood. And what better option if the alternative used not only simulates wood in its appearance but also packs in a few added benefits. If the alternative also fulfils the green requirement of better thermal efficiency along with maintenance-free features, it works as a tailor-made replacementto wood.

Deccan Structural Systems has come out with a steel alternative to wooden doors where the doors come in shades of wood. Made from pre-treated steel, these doors are considered to be three times more resistant to deformation compared to wood. Given their sleek wood grain finish, they can almost be mistaken for a wooden door.

Says Vincent Mendonza, Marketing Manager, Deccan Structural Systems, “These doors are not only fire and corrosion resistant, they are also crime-proof as they are extremely strong and come with a multiple locking system.”

Given the steel component, he says the installation of these doors has to be planned in advance. The door comes with a steel frame and hence needs to be fitted while the construction is in progress. While these ‘wipe clean’ maintenance-free doors serve as effective alternatives to wood, the company has similar options in uPVC for windows.

The uPVC windows serve as excellent alternatives to wood and aluminium windows, says Mendonza. “These windows are structured to resist wind load besides withstanding extremes of weather changes. Their design and multi-chambers assure a high degree of internal insulation, thus saving energy.” These window frames have no pores and require no painting. They…More

The Hindu : y>

Even though property developers bore the brunt of economic slowdown last year with falling sales and declining profits, they did not shy away from announcing projects with huge investments.

Among the big-ticket announcements made during the year, Parsvnath said it would invest Rs. 60,000 crore in the next five years in diversified areas such as SEZs, airports, expressways and retail business.

Township

Ansal API made public its intention to pump in Rs. 13,000 crore to develop a huge township spread over 2,500 acres adjoining Greater Noida.

Facing the heat, the major developers, including DLF and Unitech, which till last year were focusing on luxury housing, diversified their product portfolio to affordable housing. DLF announced its intention to invest Rs. 15,000 crore to develop 40,000 units.

Medium range

Unitech said it would build 10,000 apartments withan investment of Rs. 2,500 crore over the next few years. They would offer these housing units in the range of Rs. 15-50 lakh.

Omaxe announced a mammoth investment of Rs. 80,000 crore in the next five years to build 10 lakh housing units, which the developer has planned to offer at Rs. 3 lakh to Rs. 15 lakh.

Tightening the belt

But the developers also sacked some employees andcut salaries to deal with the financial crisis.

DLF had reportedly fired 600 employees, while Unitech laid off 10 per cent of its total 1,700 staff.

Parsvnath and Omaxe cut salaries of their staff up to 20 per cent and 10 per cent respectively. Omaxe also downsized its staff strength by 70.

Not being able to generate funds, the developers also had to put on hold projects involving big investments or slow down the construction work.

Not enough

The government came to the rescue of the industry and asked the public sector banks to announce cheaper home loans up to Rs. 20 lakh. The four per cent cut in CENVAT also gave a sigh…More