Latest Real Estate News on 'Chandigarh'


Realty group investors allege fraud

Comments Off on Realty group investors allege fraud   |  March 20, 2014

CHANDIGARH: TDI Investors Association, which includes 70 member investors from Chandigarh, on Wednesday created a row, alleging that the owners had cheated them of Rs 150 crore.

The association, in a press conference, alleged that a legal agreement was signed between the company and the members in 2005 after which they paid 80% of the cost for showrooms in the mall and were promised possession by 2008. The members blamed the company of not giving them possession till date and neither paying them the returns.

The project includes 70 shops varying from 400 sq ft to 1,000 sq ft.

TDI chairman Ravinder Taneja, however, trashed the allegations, blaming the authorities for the delay in the work. “We have completed the construction work. There were few objections from the administration which have been removed. We would give them the possession within a month or two when we get the green signal by the administration to start the mall,” he said.

http://timesofindia.indiatimes.com/city/chandigarh/Realty-group-investors-allege-fraud/articleshow/32332209.cms



HC sets aside order to ‘benefit’ landowners

Comments Off on HC sets aside order to ‘benefit’ landowners   |  February 26, 2014

Tribune News Service

Chandigarh, February 21
Displaying the humanitarian side of law, the Punjab and Haryana High Court in a rare judgment has set aside a lower court order, though it was neither illegal, nor erroneous.

Justice Rajiv Narain Raina made it clear that the judgment granting yet another opportunity to farmers to plead their case for a higher compensation for acquired land was being passed to “avoid miscarriage of justice”.

The order came on a petition filed by Vijay Kumar and another petitioner against Haryana and other respondents. Their evidence in support of plea to enhance compensation awarded by the Land Acquisition Collector was turned down on the ground that they failed to avail numerous opportunities.

Their counsel submitted that “there was a breach of communication between them and their counsel” before the reference court. It resulted in excessive adjournments. Even last opportunity was granted more than once.

Taking up the matter, Justice Raina asserted: “Though the impugned order dated December 5, 2013, passed by the Additional District Judge, Narnaul, cannot be faulted, the order would prevent them from establishing their case for enhancement of compensation on the basis of other sale deeds executed prior to the notification in the area of acquisition. In order to avoid miscarriage of justice, this court intervenes and grants the petitioners an effective opportunity of producing material on record in support of their case for enhancement. But they must do so within reasonable time….

“Having reached thus far, I am compelled to set aside the impugned order dated December, 5, 2013, which ex-facie is neither illegal, erroneous nor without jurisdiction but for the predominant reason of doing substantial justice and to avoid any miscarriage of it perceived from the eyes of the dispossessed landowners. This revision petition is accordingly allowed”.



Haryana revises sub-regional plan, but builders must wait for change of land use licences

Comments Off on Haryana revises sub-regional plan, but builders must wait for change of land use licences   |  February 15, 2014

CHANDIGARH/GURGAON: There is a ray of hope for real estate projects awaiting change of land use (CLU) licences from the state government. The department of town and country planning on Tuesday submitted a revised sub-regional plan to the NCR Planning Board (NCRPB). The builders, however, will have to wait till the board approves the revised plan.

Last month, the Punjab and Haryana high court had barred the state government from issuing CLU licences to developers or government agencies in NCR because of the same reason.

Earlier, the NCRPB had highlighted loopholes in Haryana’s draft of the sub-regional plan, but the government failed to incorporate the changes. After a rap from the HC, the state government submitted the revised plan on Monday. “We are now waiting for the board’s reply. NCRPB had asked us to add chapters on environment impact and special pockets in the plan. Other objections were technical like the mismatch of data and tables calculated both by the state and the board,” said Anurag Rastogi, director general of DTCP.

As per the HC order, the state still can’t issue CLU licences. “First the sub-regional plan has to be approved by the board. Then the plan for entire NCR has to be notified. This process may take time because Union urban development minister Kamal Nath hasn’t even studied the minutes of the last board meeting yet,” said a source in the ministry.

Moreover, the Delhi government has raised its concerns on the provision of allowing tourism activities in the Aravalis. “Resolution of these issues may even more time,” he added.

On January 23, a division bench of the Punjab and Haryana high court barred the state from issuing new CLUs without mandatory approval of the sub-regional plan from the NCRPB. The bench, headed by Chief Justice Sanjay Kishan Kaul, was hearing petitions on alleged unregulated construction and development around Gurgaon and other NCR areas in Haryana. During the hearing, the Haryana financial commissioner-cum-principal secretary T C Gupta assured the bench that the state government would get the requisite approval from the NCRPB within two months.

The petitioners had also challenged contents of the proposed Master Plan 2025 and 2031 of Gurgaon-Manesar region.

http://timesofindia.indiatimes.com/city/gurgaon/Haryana-revises-sub-regional-plan-but-builders-must-wait-for-change-of-land-use-licences/articleshow/30253313.cms



The revival mode

Comments Off on The revival mode   |  February 12, 2014

TNS

Property market in the tricity and its periphery is coming back to life with fresh transactions and possessions being handed over in the existing projects

Though the chill in the air has shown no signs of slackening so far in 2014, there are signs of a thaw in the realty scene in the tricity and its periphery areas in the new year.

While 2013 had been tagged as one of the most dismal years for the property market in the Chandigarh, Panchkula and Mohali area by market watchers, no miracles were foreseen for 2014 in view of the soaring inflation figures, low GDP growth and impending general elections. But the dark clouds of slowdown seem to be thinning as the realty market here has shown some movement over the past couple of months.

Winds of hope

The market has stirred back to life as the end-user, who was in a wait-and-watch mode so far, is coming forth to finalise deals now. “In the tricity now the customer is out to buy. Over the past three months quite a few transactions have taken place and these have given some momentum to the listless market”, says R.P. Malhotra, a Zirakpur-based builder. With the buyers waiting for the prices to bottom out and sellers holding on to their assets, the volume of transactions was dismally low last year and this had led to stagnation”, says I.P. Singh Chadha, CEO of Abode Realtors. According to him there has been a substantial increase in the number of queries from potential buyers over the past month and even the response to sale purchase ads was very positive now.

Commenting on the reasons for this change in buyer sentiment, he says, “The end user can now sense that a change in goverment in imminent after the elections and the real estate market will recover once a stable government is there at the Centre. Thus, the prices will appreciate by the end of this year, making it the right time to buy.”

Echoing similar views Rakesh Kerwell, Director (North), DLF Ltd, says “Almost everybody is pinning hopes on the formation of stable government that would help in stabilising the economic scenario. The tricity market has already seen price correction to the tune of 25-35 per cent than the highs of 2010-11. This correction is across all segments — residential and commercial — and may be more pronounced in the case of the lesser known developers. Attractive offers are also being offered by the builders. So this is the right time to invest in property, especially for end-users. Also, the downturn of real estate cycle has been for three continuous years. So the feeling of positivity and anticipation of appreciation in property market is there and that is what is bringing the buyers out”.

Positive factors at play

The area has a large number of big-ticket projects in Mohali, Kharar, Banur, Mullanpur, Panchkula-Pinjore Urban Complex, Zirakpur and Dera Bassi that have state-of-the-art facilities on offer. With names like Studio DRA, UK (Wave Estate, Mohali), Atkins, UK (Wave Estate), Shapoorji Pallonji (DLF Hyde Park Estate), Hafeez Contractor and Gian P. Mathur (Homeland Heights, Mohali) etc associated with the projects, the buyers are getting best things and at cheaper rates at the moment. “If one can get this standard of quality for, say around Rs 4,400 per sq ft, then it is a steal”, adds Chadha. And the revival is not there just in the residential segment, there is good response in the commervial segement too. The commercial spaces in new projects on Landran-Banur road are getting good response from buyers. “The prices here are one third of those in the established sectors like 79-80 making these attractive options”, says Chadha.

Apart from the price factor there are some other favourable growth drivers that are in play, especially in the Mohali area. The real estate growth of an area generally has a cycle of 7 to 8 years and the growth peaks at around 5 to 7 years. “Most of the projects in Mohali are at the 5 to 7 year time scale and are nearing completion, infrastructure, too, is in place now, so the end-user interest is more”, says Chadha. Recent developments like approval for big projects for New Chandigarh and allotment of land to Infosys in Mohali have also increased the realty potential of these areas.

Another factor that has played an important role in adding momentum to the realty market and in building buyer confidence is the fact that a number of big developers, who have integrated townships projects lined up in the periphery areas, have started handing over possessions to the buyers. “Handing over of plots and residential units always brings in positivity in the market as it is at this stage that the tangible product is transferred in real terms to the customer. It further leads the customer/end-user in planning to move to the new property or build one, in case of plots. So habitation of the project starts happening, which further leads to other developments such as commercial, institutional etc. All this has a positive impact on the real estate market”, says Kerwell.

In Mohali Emaar MGF that has one of the largest projects — Mohali Hills — on Landran-Banur road and was under the cloud of delay, has started handing over possessions of villas and apartments. The TDI group has also handed over possessions at its different residential and commercial projects within TDI City-I and II (Sector 117, 118, 119 and 110 and 111, Mohali). Families have already moved into Ansals group’s Orchard County in Sector 115 and in independent floors in its Sector114 project. GMADA’s mega project Aerocity that had seen very slow growth over the past almost four years is also ‘back in action’with the numbering of plots in progress right now.

Though a recent entrant in the tricity market, DLF group is also gearing to hand over the possessions of plots in its Hyde Park Estate in New Chandigarh (Mullanpur) by sometime next month and of floors at its DLF Valley Panchkula over the next few months.

With the market being end-user driven at the moment, the prices are not likely to go up considerably over the next few months. “The prices go up only when there are investors in the market, which is not likely to happen till mid-August”, says Malhotra. This, according to experts, will bring more end- users to the market. However, it remains to be seen to what extent these favourable factors will be able to revive the tricity realty scene.



CHB auction flops as only 2 out of 145 properties sold

Comments Off on CHB auction flops as only 2 out of 145 properties sold   |  February 11, 2014

The auction of commercial properties held by the Chandigarh Housing Board flopped with just two booths finding any takers on Wednesday. A total of 145 booths, bay shops and a restaurant site were to go under the hammer.

The two properties that were auctioned fetched a little over the reserve price. The CHB auction of booths held in 2009 had also flopped with no property being auctioned.

Among the booths that were auctioned was one in Sector 38 (West). This fetched Rs 61.13 lakh, just Rs 25,000 more than the reserve price. Another booth in Manimajra fetched Rs 60.25 lakh, which was Rs 27,000 more than the reserve price.

The rest of the properties did not find a single bidder. The auction was scheduled to be held from February 5 to 7. However, on the first day itself, the response was pitiable. The booths have been lying vacant for the past decade.

The CHB officials who were conducting the auction initially started the bidding announcing one site each. However, with no response being received, all the booths in each sector were taken up at once. The process ended shortly after it had started.

Several reasons were given for the flop show. According to one, traders were not keen on buying property on a leasehold basis. All the booths available were on leasehold basis. Also, service tax was to be charged this year as per directions of the Central Excise and Taxation Department.
Kamaljit Singh Panchhi, president of the Property Federation Chandigarh, said, “The auction was going to flop, it was inevitable. No one is interested in purchasing property on a leasehold basis. On leasehold property, the owner is required to pay ground rent and property tax every year. This time 12.5 per cent service tax was also to be charged. Apart from this, the collector rate is very high. We have requested the administration time and again to convert property into freehold. However, no action has been taken.”

Similar views were expressed by chairman of Chandigarh Beopar Mandal Charanjeev Singh. “There is a need for the administration to change its policies. People will not want to purchase leasehold property as 2.5 per cent ground rent has to be paid every year. People are interested in purchasing property in Chandigarh. However, in this situation, there will be no takers even in the next four to five years.”

The maximum number of booths were up for auction in Manimajra, where 71 booths were present. A restaurant site in Manimajra was also to be auctioned. The other sectors where booths were up for auction were sectors 38 (W), 40, 49, 51 and 61. The CHB auction in 2009 had also met a similar fate. There were barely any takers then as well.

The CHB auction was held in order to assess the situation in the city before auction of other properties was planned. There were proposals for auction of property to be organised by the UT Estate Office in December last year. However, these were put on hold. With the CHB auction getting a poor response, it is not likely that the administration will give the go-ahead for another auction.

http://indianexpress.com/article/cities/chandigarh/chb-auction-flops-as-only-2-out-of-145-properties-sold/



No service tax on conversion of plots

Comments Off on No service tax on conversion of plots   |  February 11, 2014

Central Excise Commissioner waives Rs 24.34 crore tax, affected plot owners hail decision

Tribune News Service

Chandigarh, February 6
In a relief to the converted plot holders in Industrial Area, Phase I, and Phase II, the Commissioner, Customs and Central Excise Department, has ruled that there will be not service tax on conversion of plots.

This order will imply on those who have converted their plots from industrial to commercial.

Besides, the Commissioner has also waived Rs 24.34 crore service tax. A show-cause notice for the service tax was issued to the UT Estate Office in July 2013 for not depositing service tax.

The department had issued notice of Rs 34.31 crore but the Estate Office will now have to pay Rs 9.97 crore as service tax for ground rent, tower fee and rent income.

After receiving the notice, the UT Estate Office had asked the plot owners to pay service tax or face cancellation of allotment of their properties in September 2013.

The UT Administration had asked the plot owners to pay service tax from June 1, 2007, on the conversion fee for change of trade or activities from industrial to commercial.

The plot owners challenged the notice and filed an appeal before the Commissioner, Customs and Central Excise Department.

The order reads: “Such activity is purely in public interest and it is undertaken as mandatory and statutory function. These are not in the nature of service to any particular individual for any consideration. Therefore, such an activity performed by a sovereign/public authority under the provisions of law does not constitute provision of taxable service to a person and, therefore, no service tax is leviable on such activities.”

Chander Verma, chairman of the Converted Plot Owners’ Association, said the conversion of plots was not a service and they had submitted the same point before the Commissioner. “We hail the order and also the efforts of the Estate Office officials to pursue the case before the Commissioner,” he added.

Arvinder Pal Singh, president of the Hotel and Restaurant Association, Chandigarh, has also welcomed the order.

Estate Office notice

The notice issued in September 2013, reads: “All owners of converted plots are requested to pay service tax and interest with effect from June 1, 2007, to avoid the cancellation of allotment of their properties. No other individual demand notices will be served.”



Licensed colonies to have gates

Comments Off on Licensed colonies to have gates   |  February 5, 2014

Chandigarh, February 2
The Town and Country Planning Department has notified guidelines for erecting security gates in licensed colonies.

A spokesman said residents welfare associations of licensed colonies had been approaching the department for seeking permission to construct gates on roads leading to their colonies. It was decided to permit additional gates on roads leading to licensed colonies.

The permission would be considered by a committee headed by the Deputy Commissioner. The SP or DCP and Senior Town Planner concerned would be members of the committee.

The committee would grant permission only on the boundary or intersection of a sector dividing road or 24-metre wide internal sector road. — TNS



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