TRANSFER OF PROPERTY IN SOCIETY

Posted on Friday, October 29, 2010 at 20:25 in Commercial Space - 0 Comments - Post Comment - Link

Ahousing society is a society set up to provide its members with open plots to build houses, readymade houses or flats, or to provide its members with common amenities and services. Society means a co-operative society registered, or deemed to be registered, under the Society Registration Act. A member of a housing society is a person joining in an application for the registration of a co-operative society which is subsequently registered, or a person duly admitted to membership after registration, and includes a nominal, associate or sympathiser member. 
    An associate member is a member who jointly holds a share in the society with others, but whose name does not stand first in the share certificate. 
    A member waning to transfer his shares and interest in the capital or property of a society should give 15 days notice of his intentions to do so to the secretary of the society on the prescribed form, along with the consent of the proposed transferee, also on the prescribed form. On receipt of the notice, the secretary of the society willplace it before the meeting of the committee, held next after the receipt of the notice, pointing out to whether the member is prima facie eligible to transfer his shares and interest in the capital or property of the society. 
    In event of ineligibility of the member to transfer his shares and interest in the capital or property of the society, the committee will direct the secretary to inform the member accordingly within three days of the decision of the committee. If the committee is satisfied that the member is prima facie eligible to transfer his shares and interest in the capital or property of the society, the committee will direct the secretary to inform the member accordingly. 
Procedure to be followed by the member 
    Submit an application for transfer of his shares and interest in the capital or property of the society, on the prescribed form, along with the share certificate 
    Submit an application for membership of the proposed transferee on the prescribed form 
    Give valid reasons for the proposed transfer Discharge all the liabilities of the society Pay the transfer fee Remit entrance fee payable by the proposed transferee 
    Pay the premium at a rate to be fixed by the general body. This will not apply to transfer of shares and interest of the transferor in the capital or property of a society to a member of his family, his nominee or to his legal representative 
    Submit a no objection certificate as required under any law 
    Furnish an undertaking or declaration if required by any law 
    The managing committee or the general body will not refuse an application for admission to membership or transfer of shares and interest in the capital or property of a society except on the grounds of non-compliance of the provisions of the Act, the rules and bye-laws of the society or any other law or order issued by the government. 
    If the decision of the committee or general body, on the application for the transfer of shares and interest in the capital or property of a society is not communicated to the applicant within three months of its receipt, the transfer application is deemed to have been accepted and the transferee will be deemed to have been admitted as a member of the society. 
    Any transfer made in contravention of the Act, rules or the bye-laws will be void and will not be effective against the society. A transferee will be eligible to exercise the rights of membership on receipt of a letter on the prescribed form from the society to that effect

Courtesy Times Property dtd:-23/10/2010

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MAINTAINING AFFORDABILITY

Posted on Monday, November 30, 2009 at 17:17 in Commercial Space - 0 Comments - Post Comment - Link

Affordable housing, in the current scenario, has become the buzzword in India's real estate sector. Almost every developer is talking of getting into this segment that involves putting up houses for the masses. Although developers are reintroducing one-bedroom apartments and, in the current falling interest rate scenario, buyers are making a comeback, the real issues related to affordable housing still need to be addressed. In the recently held The Economic Times Realty Convention 2009, panelists from all across the sector discussed concerns that come in the way of affordable housing.

Giving a broad perspective about the whole concept of affordable housing, Amit Mookim from KPMG explained, "When we look at the entire gamut of affordable housing there are around five stakeholders. There is the government and public agencies, developers who are the key to making this happen, lenders who finance the consumers and the consumer who has very specific needs. He/she has specific choices on where to live, what amenities he/she wants, what kind of infrastructure, health, sanitation, education, etc., is provided there. Fifth and not the least important is the investor who funds a lot of these activities. For this model to succeed all these factors must be taken care of and it should be a win-win situation for all." To this Anshuman Magazine, chairman and managing director, CBRE India added, "What is affordable in Mumbai may be a luxury in Hyderabad. The ticket size is the best criteria and should be kept in mind always." Talking about the viability of affordable housing projects, Rajiv Talwar, executive director, DLF Ltd shared, "Fortune lies at the bottom of the pyramid; there will be no fortune if there is no profit. A project is not viable if it doesn't give a return. What the government is trying to look for is lesser returns through greater volume. If the volumes are large then the lesser profit margin will make up for it. There is a need to empower the borrower and the milestone that should be tried and achieved is to ensure that the EMI of the borrower is less than the rent paid for similar housing. Also as a publicprivate partner, the biggest role of the government is to keep the land prices in check. It should aim at rejuvenating the supply side of the land. Industries can be shifted to the periphery so that land can be used for residential purposes. We went for industrial development in the first five decades after becoming independent but now there is a need to adopt the residential model." To this PK Mohanty, joint secretary-JNNURM-Ministry of Urban Development & Poverty Alleviation agreed, "Need has arisen to add people to the public-private partnership. As such it is the people for whom this is being done. Even government agrees that there has to be a convincing business proposition. That is the reason we are coming up with developer friendly policies."

Other than bringing the cost down it is the delivery option that is critical in affordable housing. On this Navin M Raheja, managing director, Raheja Developers Ltd. shared, "Implementation and facilitation of policies is mandatory. There is a need for separate single window clearance system to ease out the whole process for the developer. Also a model code needs to be framed for this sector." Adding to this, Talwar emphasized, "Time taken for approvals is too long. We don't want the government to deregulate the approvals or make them more transparent but the idea is to save time. By saving time we can land up any home or any project to the eventual buyer at a cheaper rate. Nobody minds paying a higher cost for the approvals, but the time taken has a greater meaning when it comes to the costs." Addressing the issue of cost management in this sector, Mookim said, "One of the key challenges in actually meeting the demand for affordable houses is going to be cost management. This will be a function of how the developers institutionalize this process; How they think big, beyond a 100 or 200 apartments to actually a 1000 or 2000 apartments; How they leverage global best practices from the countries where a lot of these large projects have taken place; How they think beyond real estate and include infrastructure as an important element; How they leverage this business model and gain economies of scale to save cost."

The panelists mentioned efficiency, delivery by suppliers, infrastructure and reforming the paradigm of planning as some of the challenges faced by the sector. The positives as seen by the panelists were; tremendous emphasis on affordable housing, awareness and supply of land in peripheral areas and focus on large volumes.

Sanjay Verma, executive managing director - South Asia, Cushman & Wakefield concluded, "There is a dire need to invest time and energy in increasing the efficiency of output and also the developers should look out for alternative construction technologies. Also a hand-shake approach between the developers and the government is essential."

Courtesy:- TOI dt:- 20/11/2009

NOIDA READIES FOR Y2K+10

Posted on Wednesday, August 12, 2009 at 05:43 in Commercial Space - 0 Comments - Post Comment - Link

In view of the 2010 Commonwealth Games in the national capital, Noida is gearing up to improve its infrastructure. Mohinder Singh, chief executive officer of Greater Noida Industrial Development Authority (GNIDA), in a conversation with A K Tiwary

What is Noida doing to spruce up its basic infrastructure to meet challenges of hosting the 2010 Commonwealth Games ?

We have planned a number of flyovers and underpasses, on the basis of a RITES traffic study for Master Plan (MP) 2021. They are being constructed along various routes, T-junctions and crossings across all sectors for smooth flow of traffic. Some of these are coming up at Sector 60, 61’s T-junction; Sector 51, 52, 71 and 72 crossing; Sector 32, 35 and 38 a crossing; Kalindi Kunj Sector 94’s T-junction and Sector 62 Khoda and NH-24 T-junction.

Despite all these, the authority has a lot more plans for territorial advantages like privatized power and reliable water supply, which will be in place very soon. The Metro work from Connaught Place to City Centre via Mayur Vihar Phase 1, Akshardham and New Ashok Nagar is already done and trial runs are in progress. To handle the multiplicity of vehicles on road, we are trying to systemize traffic controls.

Rickshaws and carriage autos (Maxi cabs) will be allotted a different route to avoid congestion. We are strengthening transportation by constructing 150 new bus stops and plying adequate number of city buses, which will be monitored through GPS (global positioning system) tracking. Volvo-type buses will also be soon introduced. To free bumper-to-bumper traffic, widening of internal roads that connect various sectors and sectors to main roads, are being taken up.

Demands for industrial and residential space in the suburbs has already triggered a phenomenal growth. What is the authority doing to put in place support infrastructure?

                A number of industrial, institutional, commercial and residential schemes have been launched to meet the demand, in the past few months. For commercial plots, tenders have been invited. To meet the power demand, GNIDA is all set to install two power stations, one a 220 KV and another 330 KV power station. The authority has asked UPPCL (Uttar Pradesh Power Corporation Limited) to increase the power loading to requirement. Meanwhile, both Noida and Greater Noida will have a new 400 KV power substation. To increase the power load a 220 KV substation in Noida and two 120 KV and 132 KV substations in Greater Noida are being installed. As far as 24x7 water supply is concerned, we are already committed to supply 100 cusecs Ganga water from Upper Ganga Canal (Dehri dam). For this an MoU has already been signed with Jal Nigam. The concerned departments are looking after the day-to-day maintenance of sectors

What are your plans to make Noida a preferred destination for thousands of families who wish to partake of all the advantages of a metropolitan city?

                Noida authority is committed to providing all the facilities that are normally associated with a major metropolis. Noida will become an ideal city with a full complement of infrastructure befitting a metropolis in time for the 2010 Commonwealth Games. Today, this emerging sub-city is known as an institutional, industrial and IT hub. Many MNCs and domestic companies are coming up every year. GNIDA has earmarked ample land for developmental works to which will attract MNCs and a number of proposals have already been received from MNCs. Some proposals have already been finalized and others are in the pipeline. South Korean, German and Thai-based companies are keen to set shop here.

What are you doing to keep pace with the mission of changing the very face of this smart city?

                Builders and developers are competing in the real estate market here and the authority has allotted a lot of institutional, residential, group housing and commercial plots; sites for a number of hotels and institutions have also been earmarked. Appu Ghar in Sector 18 is the largest shopping-cum-entertainment and amusement centre, and is already operational. The coming of The Spice, Shopprix, and other malls, lifestyle of residents has transformed like never before. Now, Noida authority is developing new sectors like 76, 78, 79, 101, 102, 104, 107 in a very innovative way. This is a reason behind the fast development in the suburbs and the improvements seen day by day.

Undoubtedly, the city is competing well in the NCR. People from Delhi prefer to shift and settle here because better facilities and job opportunities. Infact, these days it has become an industrial hub because of MNCs and foreign investors flocking the place.

With the worldwide financial crisis, what is the authority doing to meet demand and supply in the realty sector?

                A lot of initiatives are being taken up. To meet the demand and supply we have not reduced the price of the land and others given the great relaxation like density, which has been increased to 1,600/hectare. The FAR has also been increased to 2.57.

And coverage area has also been increased from 25% to 30% in up to 10 acre, and for more than 10 acre, the coverage area will be 40%. One of the major relaxations is that now there is no height restriction. I think developers and builders will be get benefited by these major initiatives to meet the demand and supply in the housing segments.

And what about the much awaited project, Sports City?

Noida Authority plans to develop a world-class Sports City spread over 311 hectare across Sectors 76, 78, 79, 101, 102, 104, and 107. We hope to make it a landmark project with state-of-the-art design backed by top architectural consultancy.

Courtesy:- TOI dt:- 08-08-09

SOPS MUST FOR REALTY GROWTH

Posted on Tuesday, June 30, 2009 at 05:21 in Commercial Space - 0 Comments - Post Comment - Link

Tax sops to the realty sector will have a cascading effect on the overall economy and boost growth with a human face, says Prabhakar Sinha

For the first time in three years, houses have come within affordable range of the middle class whose income is in the range of Rs 3 lakh per annum.

With the turmoil in financial market, the real estate sector witnessed one of the toughest times in recent times. But, now, as interest rates have fallen to a single digit, and the developers have cut prices by almost 30- 40% from the peak rates of 2008, a two-bedroom apartment is available for an EMI of as little as Rs 13,500 per month.

In the National Capital Region (NCR), a number of developers like JP Green, DLF, Unitech, Mahagun, Purvanchal, Assotech, Supertech, SVP, and A s h i a n a , among others have l a u n ch e d t wo - b e d - room apartments in the price range of Rs 16 lakh to Rs 35 lakh depending on the area and specifications. Till six months ago, nothing was available for less than Rs 30 lakh.

As interest rates are likely to fall further, an EMI on a loan required to buy these newly launched apartments could further go down. In the last six months, interest rates on home loans have fallen by almost 2 percentage points, from 11.25% to 9.25%. Besides this, the tax benefits on repayment of home loans bring down effective rates even lower.

At present, up to Rs 1,50,000 interest paid on home loan is allowed to be deducted from one’s taxable income. With this, even for a person whose income is less than Rs 5 lakh per annum, and who pays tax at the rate of 20.60% including surcharge, the effective interest rate on a Rs 15 lakh loan to be repaid in 15 years comes down to 7% from 9.25% in the first year. In subsequent years, the effective rates go further down.

However, if he borrows a higher amount of say Rs 20 lakh, the present limit of Rs 1,50,000 on interest payment, which could be deducted from one’s taxable income, is not good enough as the total tax payment for the first year would be Rs 1,85,215 at the interest rate of 9.25%.

To encourage people to invest in a house, Confederation of Real Estate Developers’ Association of India (CREDAI) has suggested the government increase the deduction on interest paid on self-occupied residential house property, which is currently restricted to Rs 1.5 lakh per annum, to the entire interest on funds borrowed for acquisition of self-occupied residential house property in the affordable housing category. In other category, CREDAI said deduction up to Rs 5 lakh per annum should be allowed in Tier 1 cities and up to Rs 3 lakh per annum in other cities.

If the government adopts these measures, the effective interest rates on a loan of Rs 20 lakh loan for 20 years will come down to 6.95% from 9.25%. Developers and consultants feel these measures will increase affordability of houses and will spur their demand.

S K Sayal, director and CEO of Alpha G: Corp, says the construction is an integral part of infrastructure sector and comprises commercial, residential, roadways, waterworks, ports, airports and SEZs.

He argued that its growth will provide impetus to the entire economy. In 2005, realty sector generated around 31 million jobs, out of which the organized sector generated 1.2 million jobs. In the next five years, 2.5 million new jobs per annum are expected to be generated.

In order to bring down the cost of construction, CREDAI has also demanded the reintroduction of a tax holiday under Section 80-IB (10) for housing projects approved after March 31, 2007. A renewal of section 80-IB, which gives tax waivers to a housing unit built on less than 1,000 sq ft in Metro Cities and 1,500 sq ft in other cities would provide a fillip to the construction of much-needed small and affordable homes. This concession was available before 2007. Under this, profit made by developers in developing small dwelling units is exempt from tax. Re-implementation of Section 80-IB (10) will greatly help in developing affordable housing in the country.

CREDAI, in a presentation said realty sector influences 4.5% of India’s GDP and employs 7% of the total work force. Therefore, if the government wants to give stimulus package to the economy to counter the present slowdown, it must provide tax relief to encourage investment in the housing sector. As a spurt in real estate activities leads to creation in assets with the creation of huge employment, any encouragement to the sector fulfils the government goal to achieve high growth with a human face.

 Developers feel the present spurt in demand will be sustainable if the economy continues to grow at least at 7%. And, for this, the government must work out a package to insulate Indian economy from the global slowdown. And, in this, real estate could be the best bet, as demand for housing is perennial - of course, provided the government makes it affordable.

Courtesy:- TOI dt:- 27^th June 2009