The rationalised property tax regime by the Haryana Government has sent lakhs of property owners, especially apartment owners, into a tizzy. In fact, the “irrational illogical” property tax formula has earned the ire of the apartment owners, including the cooperative housing society members. All of them have alleged that they have got a raw deal at the hands of Hooda government vis-à-vis the independent house owners.
A look at the property tax rates makes clear that the grouse of apartment owners is justified. “An independent house owner having a plot area of 300 square yards in A-2 cities will pay property tax at the rate of Re 0.75 per square yard, which comes out to Rs 225 per year. However, a person owning a flat having a carpet area of 1,400 square feet will be required to pay property tax at Re 0.75 per square foot, which works out to Rs 1,075 per year,” alleged S.K Aggarwal, general secretary of the Joint Action Committee of Cooperative Group Housing Societies, Panchkula.
And to rub salt into their wounds, Aggarwal alleged that they were not given a personal hearing by the Surjewala Committee formed by the Haryana Government to rationalise property tax, resulting in the current anomaly. In fact, the new property tax regime had sparked off widespread resentment among flat owners, he alleged.
“In fact, it is a double whammy for flat owners as they were also supposed to pay for maintenance of streetlights, power transformers, water supply and internal road network”, adds Aggarwal. The independent house owners are not supposed to pay for these civic amenities and the civic authorities are supposed to maintain these amenities in the case of areas having independent houses.
The Haryana Government recently came out with the new property tax formula on the recommendations of the high-powered committee headed by Parliamentary Affairs Minister Randeep Singh Surjewala.
The notification approved the slab system and divided municipal corporation towns into two categories, A-1 (Gurgaon and Faridabad) and A-2 (Ambala, Panchkula, Karnal, Panipat, Rohtak, Hisar and Yamunanagar). Towns having municipal councils and municipal committees were categorised as B and C, respectively.
The state government recently notified the property tax under which residential and commercial plots up to 100 square feet (500 square yards for industrial/institutional properties) were exempted from the tax. A tax of Rs 0.50 per square yard has been levied on property owners in A-1 cities (Gurgaon, Faridabad) and Rs 0.375 per square yard on vacant residential property owners in other municipal corporations in the state for plots measuring 101 to 500 square yards. The tax rate for residential plots measuring 501 square yards and above would be Re 1 and 0.75 per square yard for A-1 and A-2 cities, respectively.
For commercial plots, the rate would be Rs 5 and Rs 3.75 per square yard for A-1 and A-2 cities, respectively. An amount of Rs 2 and Rs 1.5 per square yard would be charged from the owners of industrial/institutional plots measuring 501 square yards in A-1 and A-2 cities, respectively.
For Class B cities (municipal councils) an amount of Rs 0.25 per square yard would be charged while Rs 0.20 per square yard would be charged in Class C cities (municipal committees) for plots from 101 square yards to 500 square yards. The property tax would be Rs 0.50 and Rs 0.40 per square yard for Class B and Class C cities, respectively, for plots measuring 501 yards and above.
For commercial property, the tax at Rs 2.5 per square yard (Class B cities) and at ~2 per square yard (Class C cities) would be charged for plots above 501 square yards. The owners of the institutional/industrial plots would have to shell out ~1 and ~0.80 per square yard from plots measuring beyond 501 square yards.
Meanwhile, for the residential plots up to 300 square yards, an amount of Rs 1 and Rs 0.75 per square yard would have to be paid in A-1 and A-2 cities, respectively. The rate for Class B and Class C cities would be Rs 0.50 and Rs 0.40 per square yard up to 300 square yards. For plots from 301 square yards to 500 square yards, the rate would Rs 4 (A-1 cities) and Rs 3 (A-2 cities). For 301 to 500 square yards, the rate would be Rs 2 (Class B cities) and Rs 1.6 per square yard (Class C cities).
Similarly, for apartments up to 2,000 square feet, the property tax rates would be Rs 1 per square feet (A-1 cities) and Rs 0.75 per square feet (A-2 cities). The rate would go up to Rs 1.2 per square feet (A-1 cities) and Rs 0.90 per square feet (A-2 cities) in case of flats from 2,001 to 5,000 feet. In case of flats up to 2,000 square feet, the rate would ~0.50 (Class B cities) and Rs 0.40 (Class C cities). For flats in the category of 2,001 to 5,000 feet, the rate would be Rs 0.60 (Class B cities) and Rs 0.48 per square feet (Class C cities).
As far as commercial property was concerned, a rate of Rs 24 per square yard (A-1 cities) and Rs 18 (A-2 cities) would be charged for shops up to 50 yards. For shops from 51 to 100 square feet, the rate would go up to Rs 36 (A-1 cities) to Rs 27 (Class-2 cities). In Class B cities, the rate would be Rs12 while it would be Rs 9.60 per square yard in Class C cities for up to 50 square yards. In case of property from 51 to 100 square yards, the rate would Rs 18 (Class B cities) and Rs 14.40 per square yard (Class C cities).
The property tax was scrapped in 2010 by the Congress government. As a consequence, the Central Government stopped the release of Central grants. The Hooda Government would now be eligible to get Central grants amounting to over Rs 750 crore.
In a clear bid to mop up resources, the state government has brought the vacant plots within the tax ambit. Besides, the property owners will have to pay arrears of the property tax with effect from April 1, 2010.
100 per cent rebate to the religious properties, orphanages, almshouses, municipal buildings, cremation or burial grounds, dharamshalas, Central and state government educational institutions and government hospitals.
100 per cent rebate would be given to the self-occupied residential houses up to 300 square yard owned by serving and retired defence and paramilitary personnel or his/her spouse, families of deceased soldiers/ex-servicemen/ex-Central paramilitary forces personnel.
100 per cent rebate to the self-occupied residential houses owned by freedom fighter or his/her spouse and war widows.
Similarly, 50 per cent rebate would be given to the state government buildings(other than buildings of boards/corporations/ undertakings/ autonomous bodies.
-Apartment owners up in arms against new irrational property tax formula
-Apartment owners to pay much more tax than freehold property owners
-Cooperative housing societies not given personal hearing by Surjewala Committee
-Apartment owners urge the CM to hold property tax notification in abeyance
GURGAON: Real estate developers have urged the Municipal Corporation of Gurgaon to hand them control of roads that connect city areas to villages, eyeing a revenue windfall as the urban sprawl expands. There are hundreds of revenue roads, as the streets in gentrified areas are known, across Gurgaon as villages surround the city’s urban boom. The civic body has so far received 35 applications from several builders and isn’t averse to the idea of a handover, which will entrust private developers with the responsibility of maintaining civic infrastructure on the revenue roads.
The reason why builders want the MCG to transfer control of revenue roads to them is the subsequent increase in FAR (floor area ratio) that they can bring about while building more properties.
The MCG isn’t unenthusiastic about the proposals because the transfers will bring crores into its coffers. The only dilemma now, it appears, is the price for which these roads can be sold to builders. An official with the civic body said a committee, comprising senior district administration officials, has been set up to determine the price. “There are many revenue roads both in old and new Gurgaon and realtors have built properties on both sides of these roads. Since the roads still belong to MCG, they are not able to increase FAR. They are willing to pay the prevailing market price for the handover. As it cannot benefit from these roads any way, MCG too it is willing to transfer ownership to earn revenue,” a senior MCG official said.
Nov 29, 2013, 08.00AM IST
हाई कोर्ट में सुनवाई 2 दिसंबर को
एनबीटी न्यूज ॥ गुड़गांव
कॉलोनाइजर एरिया में हाउस टैक्स वसूलने का मामला फिर से गरमा गया है। इस मामले में कोर्ट ने निगम से कई मुद्दों पर सवाल किया था, जिसके जवाब में निगम ने कहा है कि अपने इलाके में निगम हाउस टैक्स वसूलने के लिए स्वतंत्र है। यहां तक कि ट्रांसफर एरिया व कालोनाइजरों द्वारा डिवेलप इलाकों में भी निगम हाउस टैक्स वसूल सकता है। इन इलाकों में हाउस टैक्स वसूलने के लिए निगम ने म्युनिसिपल कॉरपोरेशन एक्ट की धारा 87 का भी हवाला दिया है। मामले में 2 दिसंबर को हाई कोर्ट में सुनवाई होनी है। निगम ने अपना जवाब कोर्ट में फाइल किया है।
गौरतलब है कि इस साल मई में गुड़गांव सिटिजन काउंसिल ने कॉलोनाइजर एरिया में हाउस टैक्स वसूलने के विरोध में हाई कोर्ट में याचिका दायर की थी। कोर्ट ने निगम से इस संबंध में कई मुद्दों पर जवाब मांगा था। जवाब 2 दिसंबर से पहले फाइल करना था। कोर्ट के सवालों के जवाब में निगम ने कहा है कि म्युनिसिपल कॉरपोरेशन एक्ट की धारा 87 के तहत निगम ट्रांसफर एरिया या कॉलोनाइजर एरिया में हाउस टैक्स वसूल सकता है। निगम ने याचिकाकर्ता के उस आरोपों को सिरे से नकार दिया है, जिसमें कहा गया है कि बिना ग्राउंड एक्सरसाइज के ही सरकार ने निगम बनाने की घोषणा कर दी थी। निगम ने याचिकाकर्ता के उस आरोप को भी नकार दिया है, जिसमें कहा गया है कि हाउस टैक्स वसूलने के लिए यहां रहने वाले लोगों को निगम ने नोटिस जारी किया है। जवाब में निगम ने कहा कि 11 अक्टूबर को हाउस टैक्स की नई पॉलिसी लागू होने के बाद से किसी को भी नोटिस जारी नहीं किया गया है।
इस मामले में जॉइंट कमिश्नर अंजू चौधरी का कहना है कि कोर्ट में इस मामले की सुनवाई 2 दिसंबर को होनी है। कोर्ट जैसा आदेश देगा निगम उसे फॉलो करेगा। उनका कहना है कि निगम ने कोर्ट को बताया कि नियमों के अनुसार निगम कॉलोनाइजर एरिया में हाउस टैक्स वसूलने के लिए स्वतंत्र है।
Nov 29, 2013, 08.00AM IST
एनबीटी न्यूज ॥ गुड़गांव
आयुध डिपो के प्रतिबंधित एरिया में अवैध निर्माण नहीं रुक रहा है। इस पर डिप्टी कमिश्नर ने क्विक एक्शन टीम में शामिल अधिकारियों को कड़े लहजे में चेतावनी दी है। उन्होंने कहा कि टीम के सदस्यों का काम संतोषजनक नहीं है। उन्होंने सैटेलाइट रिपोर्ट तैयार कर 3 साल की इमेज उपलब्ध कराने का आदेश दिया है। पुलिस से नाइट पेट्रोलिंग के दौरान अतिरिक्त जवानों को ड्यूटी पर लगाने को कहा गया है।
डीसी शेखर विद्यार्थी ने इसी माह प्रतिबंधित क्षेत्र में अवैध निर्माणों की समीक्षा की थी। इस दौरान पूरे एरिया को 6 डिवीजनों में बांटा गया। प्रत्येक डिविजन में चेकिंग के लिए क्विक एक्शन टीम बनाई गई। इसके बाद भी इलाके में अवैध निर्माण जारी हैं। टीम में शामिल सदस्यों को डीसी ने चेतावनी दी कि अवैध निर्माण की सूचना मिलने पर मेंबरों के खिलाफ कार्रवाई की जाएगी। आयुध डिपो एरिया में सैटेलाइट इमेज तैयार करने के लिए एक कंपनी को काम सौंपा गया है। डीसी ने प्रतिबंधित क्षेत्र का पिछले 3 साल की सैटेलाइट इमेज उपलब्ध कराने को कहा है। इसके अलावा कंपनी को हर महीने सैटेलाइट इमेज देने को कहा गया है। रात में अवैध निर्माणों की जांच के लिए उन्होंने पुलिस कमिश्नर को लेटर लिखा है। इसमें कहा गया है कि नाइट पेट्रोलिंग के लिए अतिरिक्त पुलिस कर्मियों की ड्यूटी लगाए।
शेखर विद्यार्थी का कहना है कि प्रतिबंधित क्षेत्र में अवैध निर्माणों की समीक्षा समय – समय पर की जाती है। इस बार समीक्षा के दौरान क्विक एक्शन टीम के कार्यों में कोताही की रिपोर्ट मिली थी। इस पर उन्हें चेतावनी दी गई है।
Nov 29, 2013, 08.00AM IST
एनबीटी न्यूज॥ गुड़गांव
सेक्टर-10 ए थाना पुलिस ने गांव बसई मेंे अवैध रूप से प्लॉट काटने पर एक महिला के खिलाफ केस दर्ज किया है। उस पर आरोप है कि अन्य लोेगों के साथ मिलकर बिना परमीशन के यहां पर प्लॉट काटे। डीटीपीई की ओर से मिली शिकायत के बाद पुलिस ने केस दर्ज किया है। पुलिस इसकी जांच कर रही है कि इसके पीछे कौन लोग शामिल हैं। सेक्टर-10 ए थाना प्रभारी इंस्पेक्टर हंसराज ने बताया कि पुलिस ने केस दर्ज कर लिया है।
GURGAON: With the property tax collection drive now resumed by the Municipal Corporation of Gurgaon (MCG), the issue of whether or not this is a legitimate demand has once again been brought to the fore. The industrial community didn’t respond well to this demand when it was first made last year, calling it unreasonable. Even today, many are reluctant to abide by it, while those who have agreed to defray the tax money say that they will do so ‘under protest’.
“We have advised our members to pay property tax under protest, simply because the MCG is yet to take over the civic responsibility of the industrial area from the HSIIDC,” said H R Vaish, president of the Udyog Vihar Chamber of Industries.
GURGAON: Even as the MCG has extended the deadline for payment of property tax, DLF and other private builder area residents have refused to pay up. Residents say they will not budge till the Municipal Corporation of Gurgaon (MCG) takes over these areas from private builders.
The civil writ petition filed by the Gurgaon Citizens Council (GCC) on the issue comes up for hearing in the Punjab and Haryana high court on Monday.
According GCC, which is an umbrella body of various resident welfare associations in the new Gurgaon area, the MCG should first start providing them services like water, roads, and streetlights, among others, before they start paying property tax. They also said they have to pay twice – first the maintenance charges to the private builder and then to the MCG.
“We have decided not to pay the property tax as the case in this regard is still pending in the court. The next hearing is on Monday. We are hoping to get a respite from the court. Why should the residents suffer by paying dual tax?
Paying maintenance to the private builder is understandable because they are providing us services, but why should we pay tax to the MCG when it is not providing us even a single service? We hope the court will look into the matter and give us relief,” said R S Rathee, president, GCC.
The MCG authorities, on the other hand, insist that all private builder area residents should pay property tax like the rest. “The municipal act states that the even they have to pay tax because we provide them other services like the construction and demolition waste plant that we are planning to set up. Even these residents can send the C&D waste to this plant and avail the benefit. Moreover, we will take over these private builder areas one day or the other,” said a MCG official.
GURGAON: Exasperated with the callous attitude of HUDA authorities and unable to find solutions, residents of Sector 50-51 have started an online signature campaign to demand streetlights in their area.
These residents have been fighting for the past year to get streetlights installed on a two-km stretch near Nirvana Country. They suspect HUDA is unwilling to install them on the road, which is owned by them, as the properties on either side belong to private builders.
“For the past one year, we have met all officials concerned in HUDA starting from the administrator, Praveen Kumar. They have been making all kinds of promises and giving every possible excuse for not installing these streetlights. There is not a single streetlight on this stretch and as a last resort I started this online signature campaign this week to pile pressure on them to act. Already we have received over 100 signatures. Apart from this, we also plan to hold a dharna and candlelight vigil to make our protest known,” said Manoj Khera, who started this campaign on Change.org.
“At first the HUDA officials said the streetlights could not be installed on the sides but had to be fixed on the median. They asked us to wait till the road was widened and a median constructed. We waited. After the median was built, they said it was narrow and the base on which the streetlights need to be installed could not fit on it,” Khera said.
Despite repeated attempts by TOI, the HUDA administrator could not be contacted.
Last year, a similar campaign was launched by residents of Palam Vihar, demanding streetlights in their area. Soon after the campaign was launched, HUDA installed the lights.
In a bid to enhance disaster preparedness, owners of high-rise structures and hazardous industries in Haryana’s Gurgaon district will be asked to submit a compliance report on safety measures to the district authority within two months.
“The owners will have to submit a compliance report on safety measures to be adopted as per guidelines of the state government issued from time to time on their premises within two months to District Revenue Officer Tarsem Sharma,” Deputy Commissioner Shekhar Vidyarthi today said at a review meeting on the preparedness of disaster management in Gurgaon.
Those who fail to adhere to these directions will be penalised, he said.
Presiding over the meeting, Vidyarthi directed officials of Municipal Corporation Gurgaon (MCG), Haryana Urban Development Authority (HUDA) and District Town Planner (DTP) to prepare a list of high-rises in the district.
The DTP will then prepare a blueprint showing locations of these buildings on the map. A similar blueprint of the hazardous industries will also be prepared by the Haryana State Industrial Infrastructure Corporation.
The authorities would also have to show on map major and alternative routes to the premises or buildings, so that in the event of any accident these routes can be used to reach the affected area or to evacuate the premises.
Vidyarthi directed the authorities to conduct a survey to identify the high-rises and hazardous industries.
A team of officials would also conduct socio-auditing of the buildings to check whether the safety measures are in place or not. The team constituted by the Deputy Commissioner includes representatives of Deputy Commissioner’s office, DTP, Fire, HUDA and PWD (B&R) departments.
The team would inspect at least two buildings or premises at random every month and submit its report in the monthly review meeting.
An acquisition binge has placed private equity giant Blackstone as the second biggest landlord in India’s booming office space market, emerging as a strong challenger to Gurgaon-based DLF’s leadership in a real estate segment with stable yields, data sourced from international property consultants said.
Blackstone’s appetite signals a maturing Indian market for rent yielding assets, mirroring a global trend where many iconic commercial buildings are now owned by financial investors, including private equity and pension funds.
Blackstone has spent more than $600 million in the past two years controlling about 21 million sqft of office buildings, which are tenanted or nearing a lease deal. It has another 7 million sqft of development potential in the existing assets, making it the most significant consolidator of Indian work spaces with annual yields ranging between 10-15%.
Blackstone declined to comment on the story, when contacted.
DLF has over 27 million sqft of office space, the biggest as of now, but could soon lose top slot to Blackstone, managing assets worth $200 billion globally. DLF has also been selling off assets like IT parks to pare some of its $3.5-billion debt.
Mumbai’s K Raheja Corp, Bangalore-based developers RMZ Corp and Embassy Group, and Delhi-based Unitech are among the country’s top office space landlords, each operating between 10 million sqft and 15 million sqft of space. India’s total grade A office space is estimated at over 360 million sqft.
Blackstone has strung together joint ventures with IT park developers like the Embassy Group and Pune’s Panchshil Developers, besides outright acquisition of office assets from others including DLF. It had picked up a 50% interest in Embassy’s rent yielding office portfolio of 13.5 million sqft, while holding a large stake in Panchshil’s 4 million sqft park.
More buyouts are in the offing with final talks underway to acquire South Mumbai’s Express Towers, as reported by TOI in May this year.
Blackstone is also in the reckoning to buy a large stake in Bangalore’s Vrindavan Tech Village with 2.1 million sqft of tenanted office space, with potential to develop additional 10 million sqft. Similarly, it has also been working on a possible takeover of Unitech’s 3.6 million sqft IT special economic zone in Dundahera
“Private equity firms, pension funds and real estate investment trusts (REITS) own close to 80% or more of the office space market in most mature markets around the world,” said Anshuman Magazine, CMD, CBRE South Asia. India’s office space market is still heavily fragmented given that some developments could have between 70 to 100 landlords.
“Since bank funding wasn’t readily available in the mid-90′s developers pre-sold their office spaces to fund construction costs. This trend is changing now given that developers are looking to build large office space portfolios, which in turn attract interests from institutions like Blackstone,” Magazine added.
Global investors wanting to dabble in India’s volatile, and often opaque, real estate market are settling down for commercial assets, housing MNC clients, given its low risk and stable yields. The highest rental yields among emerging markets and the possibility of Indian REITs taking off have fuelled the interests of bulge bracket investors like Blackstone, GIC of Singapore and Canadian Pension Plan.
“You’re going to see many more international fund houses up their interest in commercial buys. The country still faces a shortage of FDI-compliant office space assets and bank funding isn’t quite favourable to commercial real estate,” said Anuj Puri, chairman and country head, Jones Lang Lasalle.