MCHI-CREDAI, real estate industry bodies on friday opposed the Government’s decision to introduce LBT saying it goes against the home buyers’ interests.
“We strongly believe that the LBT which the Government is trying to introduce is detrimental to both the developer and home buyer community. What it means is that home buyers who are already paying various taxes will need to cough up even more in the form of this new tax. The affordable housing is becoming a distant dream with additional new taxes being introduced from time to time. The primary motive of the government is to provide affordable housing and not to use housing as a source of generating revenue” said Mr. Vimal Shah, President of MCHI-CREDAI.
Developers who are already reeling under the pressure of sluggish economy will be forced to pass on this new tax to end-users. This will raise property prices, thereby hurting the prospects of affordable housing, which is the need of the hour” added Mr. Shah.
We request government to reconsider in these taxing issues. The government should come up with policies which will help reduce burden on home buyers.
Tribune News Service
Chandigarh, May 24
Just about a year after Padma Shri Anjolie Ela Menon drew a grim picture of ecological degradation in Gurgaon, the Punjab and Haryana High Court today allowed her plea against the proposed acquisition of her land. She had claimed that her land was being acquired to facilitate a housing project in the name of laying a road.
In a petition, she had earlier stated that the land was being acquired for the ostensible public purpose of building a 60-metre sector road east of the Ghatta bundh. But the true purpose of the proposed sector road was evident from the ongoing construction and advertisement for sale of a large private luxury housing project. The proposed sector road has no apparent purpose other than to serve as a secondary access for the luxury project.
Raising ecological concerns, the petitioner had asserted: “The sector road will pass through and develop an area adjacent to the ecologically sensitive Aravali region, where a forest has been cut and a seasonal water reservoir exists”.
The petitioner also claimed that appropriate environmental clearances from the Union Ministry of Environment and Forests and other clearances were yet to be obtained.
Payment schemes such as 20:80 introduced by developers have made some impact in offloading inventories. Its success hinges on the price point and most important, track record in delivery, say a cross-section of experts
Developers, saddled with huge unsold inventories, are wooing hesitant buyers with seemingly attractive payment schemes.
Earlier, buyers kept off the sales counter as the price points were high, and the global slowdown resulted in delayed deliveries, and in many cases, projects not taking off at all. While price points do not look like they would witness a correction, developers are aggressively advertising payment schemes, the most popular being the 20:80 scheme and its variants such as the 25:75 or 35:65, with an aim to keep their sales counters abuzz with activity.
Under this scheme, the buyer pays 20 per cent of the unit price upfront and 80 per cent on possession, with the EMIs (equated monthly instalments) in between being handled by the developers. This is usually advertised as ‘no pre-EMIs’ for a certain duration. Such developers undertake to pay the EMIs for up to two years, with the assurance that the buyer will get possession of the unit by then.
For example, if a flat costs Rs 40 lakh, the bank will pay Rs 30 lakh (80 per cent of cost) to the developer, say at an interest rate of 10 or 11 per cent. The developer will pay around Rs 25,000 per month to the bank for two years.
It is a huge gamble for developers who are taking the responsibility for interest payments on behalf of the buyer for a designated period. For some developers, however, it appears the move is yielding dividends. Enquiries are increasing, which has led to increased sales. “Deferred payment schemes like 20:80 and their variants have emerged as a major tool to stimulate sales. In Delhi NCR, developers like CHD, Indiabulls, Nirmal Lifestyle and Bdi, are offering the subvention scheme, which has resulted in improving their sales,” says Rohit Kumar, head of India research at DTZ, a property consultancy.
Raheja Developers, a leading player in the Delhi NCR market offers 50:50 payment schemes for some projects under development, says sales have picked up. “Sales have gone up by 50 per cent in the Gurgaon market, after the implementation of this scheme,” says Harinder Dhillon, a spokesperson for the company.
“Schemes like 20:80 have existed in the market, but they started becoming popular since last year. 2012 was a difficult year, which witnessed slow sales amidst liquidity crunch being faced by developers. Such attractive schemes and offers were launched and profusely marketed by developers to help boost sales,” says Samir Jasuja, CEO, PropEquity, a real estate research firm.
The scheme has shown results in the Mumbai market, at least for some developers. “Sales have surely picked up in Mumbai (of course limited to specific projects only) after stagnating or narrowing through 2011 and 2012,” says Abhishek Kiran Gupta, real estate analyst at Bank of America -Merrill Lynch.
Gupta, however, adds that one should not become exuberant as this is not yet verified by clear findings. “We shall get greater clarity once the second quarter figures for the calendar year come in by June-end. The first quarter definitely looked better, but I would not get too excited too early as historically the fourth quarter and the first quarter of each calendar year are typically good due to festive seasons.”
Yet, such schemes are not the determining factor in influencing purchase decisions, for the Indian home buyer is equally discerning. “The Indian residential real estate market is currently at a phase where sales are subject to the baseline attributes of projects — proper pricing, good location in relation to workplace hubs, capital value and — very importantly, immediate availability or advanced state of completion,” says Santhosh Kumar, CEO-operations, Jones Lang LaSalle India.
A banker says that the scheme has swelled home loan portfolios, but cautions that it carries risks as well. “The scheme seems to have taken off quite well. Banks are safe as the property is mortgaged and they can recover their money. If the builder refuses to pay up mid-way during the two-year period, the customer will end up paying the money. Not all developers are into this scheme. Some of the reputed ones who have deep pockets have stayed away from it,” said the former chairman of a leading nationalised bank. Kumar adds that when the fundamentals for a project are in place, such schemes positively influence sales.
Other analysts say that on the face of it, such schemes appear to be a win-win proposition for the developer and buyer, but did not really take off in the manner it should have. “The 20:80 payment scheme hasn’t been fully endorsed, especially considering what happened in Noida Extension- there is an element of uncertainty as not all projects get completed on time,” says Harinder Singh, MD, Realistic Realtors, a Gurgaon-based property consultancy.
The key attribute that determines the success of this scheme is the price point. “It is not very successful in cases where prices are above Rs 1.5 crore,” says Mamta Gakhar, MD, Bricston Realtors, a property broker based in Gurgaon. “The main reason being that the subvention scheme of 2 years costs 16-18 per cent extra to the builder and is built in the price list. So investors generally avoid this scheme and book properties in a normal construction-linked plan. That way, it becomes easy for them to liquidate their investment after the third or fourth instalment with a little profit on the amount invested.”
Gakhar’s experience shows that the attractiveness of the scheme is maximum for price points that range between Rs 25-75 lakh. “This category attracts the salaried class of buyers who are buying their first home. So this scheme saves them from the burden of paying EMIs along with their monthly rents.”
As Singh adds, “Home loan repayment is a long-term process, whether a concession during the initial years will prove to be beneficial or not.” This means, the buyer would have to keep an eye out for the track record in delivery, for that is the only determining factor.
GURGAON: Punjab and Haryana high court on Thursday issued notice to the state government, director general of town and country planning (DTCP), Municipal Corporation of Gurgaon (MCG), Haryana Urban Development Authority (HUDA) and others for not completing the external and internal development works at residential colonies within the given time frame. The court has directed them to file a report before August 19.
The court issued notice on the basis of a petition filed by the Gurgaon Citizens’ Council (GCC) after the state government and other parties concerned despite the directions issued by the apex court issued tax demand to the petitioner.
President of the council, R S Rathee said in December while hearing our case the Supreme Court had directed HUDA and the private builders to finish the external and internal development within six months and hand over charge to the MCG so that it can start providing the essential services to those residing in private builder areas.
The private builder area residents have long been protesting against the way they are being made to pay twice – to the private builder for maintenance and to the MCG as property tax.
Even after inclusion of licensed areas in the Municipal Corporation way back in 2008 the MCG did not take over the licensed areas and did not provide any services but were very prompt in issuing public notice for imposition of tax and also issued individual notices to the resident without following due procedure as prescribed under the act, said Rathee.
Earlier GCC wrote to MCG commissioner to find out if it will be able to take over the private builder area within this timeframe and start providing us services. But when it failed to take over, GCC approached the high court and filed a petition against all three government agencies – HUDA, MCG DTPC for failing to comply with the Supreme Court order.
MHADA, which is facing a severe land crunch in Mumbai, is considering a proposal to be the implementing agency for redevelopment of slums on its land.
Eighty-four MHADA plots in the city have been rendered useless by encroachments. “We have not estimated how much housing stock we will get after redeveloping these slums.
“The authority will take a final decision on the proposal in the next few days and send it to the state government for approval,” said Niranjankumar Sudhanshu, chief officer of MHADA Mumbai board.
Encroached MHADA plots are being at present redeveloped by the slum rehabilitation authority (SRA). MHADA hands over land to the chosen developer at the ready reckoner rate and is not entitled to housing stock.
Left with just about two hectares of usable land in the city, MHADA has not been able to provide affordable housing of late.
It is looking at ways to increase housing stock.Most of its 1,500 hectares in Mumbai is occupied by 105 housing societies, while the rest is encroached.
MHADA has proposed to offer 300 square feet houses to slum-dwellers eligible for rehabilitation as compared to the 269 square feet ones SRA offers.
The Municipal Corporation of Gurgaon (MCG) has earmarked a site near Kachra Chowk on the Gurgaon-Faridabad Expressway for setting up a plant for the disposal of construction waste.
Heaps of debris is spread in various commercial and residential areas across the Millennium City.
“The waste generated from projects under construction as well as from residential complexes will be processed at the proposed plant,” said BS Singroha, chief engineer, MCG.
However, the site is notified as a protected zone of the Aravalis. On this, the civic body has decided to approach the ministry of environment and forests to get clearance for the zone.
“Kachra Chowk is the site chosen for the proposed plant. We already have tenders marked for the construction. But the site is notified as a protected zone of the Aravalis. So we will apply to the ministry of environment and forests for a clearance next week,” added Singroha.
Representatives of the citizens’ groups, including Gurgaon Action Plan with We The People, Clean Gurgaon and Gurgaon First, met Singroha on Thursday to discuss how to dispose of the malba effectively.
“The idea is to make groups of people collaborate on the issue so that we can work with the authorities and ensure that the disposal process is carried out as planned,” said Gauri Sarin, a representative of the Gurgaon Action Plan.
Meanwhile, local residents are opposed to a disposal facility coming up in the vicinity.
“The malba is dumped and gets flattened out. Hawkers and jhuggis come up at the spot. Besides, the site is under the Aravali belt. We don’t want to lose our greens,” said GB Singh, resident of G-Block, DLF City Phase I, who resides near Kachra Chowk.
As per a resolution passed by the Municipal Corporation of Gurgaon in 2010, IL & FS Waste Management and Urban Services Ltd (IWMUSL) had given its consent to set up a facility for the disposal of construction and demolition waste in collaboration with the civic body.
The resolution said the MCG would have to provide IWMUSL land in low-lying areas to facilitate the disposal of waste.
“Since Gurgaon is an IT and ITES hub, it also requires a facility for safe disposal of e-Waste. The IWMUSL expressed interest in setting up an e-Waste management facility on the same land,” the resolution read.
बिजली निगम अपने आदेश पर कायम
एनबीटी न्यूज ॥ गुड़गांव
पावर इन्फ्रास्ट्रक्चर के लिए बैंक गारंटी जमा कराने के आदेश के खिलाफ कॉलोनाइजर असोसिएशन व बिजली निगम आमने सामने हैं। असोसिएशन के पदाधिकारियों ने इसकी शिकायत मुख्यमंत्री से की है। उनका तर्क है कि एक ही काम के लिए कॉलोनाइजरों से 2-2 बार बैंक गारंटी लेना उचित नहीं है। वहीं बिजली निगम के चेयरमैन व मैनेजिंग डायरेक्टर देवेंद्र सिंह का कहना है कि उपभोक्ताओं के हित में बिजली निगम ने जो फैसला लिया है, वह उचित है। बिजली निगम अपने फैसले से पीछे नहीं हटेगा। कॉलोनाइजर को बैंक गारंटी देनी ही होगी।
क्या है कॉलोनाइजर्स का तर्क
कन्फेडरेशन ऑफ रीयल स्टेट डिवेलेपर्स असोसिएशन ऑफ इंडिया (सीआरईडीएआई) के प्रेजिडेंट पंकज बजाज व असोसिएशन के पदाधिकारी बिजली निगम के बैंक गारंटी जमा कराने के फैसले के विरोध में हैं। शिकायत है कि नई बनाई जा रही कॉलोनियों के लिए बिजली निगम पावर प्लान अप्रूव नहीं कर रहा है। प्लान को अप्रूवल तभी मिलेगा जब कॉलोनाइजर बिजली निगम को बिजली प्लान का डेढ़ गुनी बैंक गारंटी देगा। यह ठीक नहीं है। बिजली प्लान पर अप्रूवल लेने से पहले कॉलोनाइजरों से टाउन एंड कंट्री प्लानिंग डिपार्टमेंट भी उनसे बैंक गारंटी लेता है। ऐसे में कालोनाइजरों को 2-2 बार बैंक गारंटी जमा करानी पड़ेगी। इसकी शिकायत कॉलोनाइजर असोसिएशन ने मुख्यमंत्री से भी की है। लेकिन वहां से कोई ठोस जवाब नहीं मिला है। सीएम ऑफिस ने बिजली निगम के सीएमडी को लेटर लिखकर उनका कमेंट मांगा है।
क्यों नहीं देना चाहते बैंक गारंटी
असोसिएशन का कहना है कि जब कॉलोनाइजर हूडा से जमीन खरीदते हैं। तब हूडा उनसे एक्सटरनल डिवेलपमेंट चार्ज (ईडीसी) चार्ज लेता है, जिसमें सबस्टेशन बनाने का चार्ज भी शामिल होता है। इसलिए उनकी कॉलोनियों में बेहतर पावर सप्लाई के लिए हूडा को सबस्टेशन बनाना चाहिए। पैसे लेने के बावजूद भी सबस्टेशन बनाने का काम कालोनाइजरों पर थोप दिया गया है, जो गलत है।
बिजली निगम ने जो आदेश जारी किया है उस पर कायम रहेगा। कई कालोनाइजर्स ने बिजली निगम को भरोसा दिलाया था कि वे आलॉटियों के आने तक पर्याप्त पावर इन्फ्रास्ट्रक्चर तैयार कर लेंगे। लेकिन इस पर अमल नहीं किया गया। इससे उपभोक्ताओं को परेशानी हो रही है। -देवेंद्र सिंह, चेयरमैन व मैनेजिंग डायरेक्टर, बिजली निगम
Residents under the banner of the Gurgaon Citizens’ Council (GCC) moved the Punjab and Haryana High Court against the Haryana government over the issue of house tax on Thursday.
“As directed by the Supreme Court on December 3, 2012, we moved the high court against the Haryana government for not completing external development works such as water, sewer, roads, power etc around private localities. Private builders also did not complete internal development works though both the government and builders collected charges years ago.”
“After completing the internal and external works, private localities are supposed to be transferred to the local body such as the Municipal Corporation of Gurgaon (MCG) for civic maintenance. Only after that, the government (through MCG) is entitled to collect the house tax from us,” said RS Rathee, president of GCC.
The GCC has made party to the case the principal secretary, town and country planning department, urban local bodies, director town and country planning department, chief administrator the Huda, MCG and a group of 14 Gurgaon builders, who got licences to develop towns/colonies years ago and are still maintaining them, but continue to collect charges for the same.
The next hearing of the case is on August 19.
Eastern Freeway, which will cut the travel time between the eastern suburbs and south Mumbai to under 25 minutes, does not have the infrastructure to detect traffic violations. In the absence of such an infrastructure, there could be overspeeding and mishaps.
MMRDA will commission about 14 km of the 16.8-km freeway in the last week of this month. However, it has not installed a single CCTV camera on the signal- and toll-free stretch.
“As of now, we have not planned for CCTV cameras or measures to prevent accidents. We will think about that if there are untoward incidents once the freeway is opened and collaborate with traffic police,” said U P S Madan, metropolitan commissioner at MMRDA.
In the first phase, MMRDA will commission a 9.3-km, four-lane elevated road from Orange Gate on P D’Mello Road to Anik near Wadala. It will also open part — four lanes — of the eight-lane Anik-Panjarpol Link Road, which has a 500-metre tunnel. Some of the transportation experts MMRDA took to the freeway a few days ago observed the absence of surveillance cameras could create traffic issues.
“A lot of goods carriers will use the freeway due to its proximity to Mumbai Port Trust and Wadala Truck Terminus. There will be cases of drunk driving, overloading and so on. If there is a breakdown leading to a pile-up, without CCTVs and a control centre it will take long for the authorities to know it,” said Jitendra Gupta, a member of citizens transport committee.
“Opening the freeway without CCTV surveillance is a big risk not only from the point of view of traffic but also from the point of view of security as there are oil company establishments in the vicinity,” he said.
The elevated portion of the freeway overlooks over establishments of Hindustan Petroleum, Bharat Petroleum and Indian Oil. However, MMRDA has put up three-metre barriers to block the view.