Tuesday, May 31, 2016

GET PEACE IN FARMHOUSE



Sometimes you need to get away from it all to a weekend retreat where you can relax and have a pleasant, restful time.  What better way than to have a farmhouse where you can have a change from the busy city life. How can you make the farm house more appealing?  It should be different in some way and should give you a whiff of the outdoors combined with the comfort of the indoors.  Wood and stone are two elements that have multiple creative uses in embellishing your place.

Cladding of stone, terracotta or bricks in the foyer, lobby or dining room will make even the dullest of places to become attractive.  A warm and inviting stone cladding for the fire place is a good idea.  Exposed bricks in the wall add a rustic ambience to the home.  If you want a reminder of the Mediterranean, you can have a title mosaic embedded in a wall.  More stone will look good in patios, staircases and columns.  A backdrop of luxurious furnishings and furniture will complete the picture.  The use of wood will definitely add charm, whether in the cladding or in rafters.  Wooden beams and columns with cladding are ideal to give a countryside atmosphere.

Windows are another feature that will increase the beauty by bringing in a view of the natural surroundings.  You can have all types of them, whether large ones with fan lights, picture windows or bay windows they will fill the house with sunlight.  If you have a courtyard, you can have French windows with doors opening into it.  For a sloping roof, dormer windows are best.  It gives the house a happy, healthy air.

Since you are there to have a leisurely time, pick comfortable furniture like large loungers and oversized couches.  A long dining table to while away the hours in conversation over meals would be good.  The theme of the farmhouse has to be carefully chosen, whether it is a haveli theme which requires colonial or Rajasthani style of furniture, or a western rustic theme with a log highlight. You must get furnishings that go with the theme.  Bright colored ones for the western theme against a neutral background are best.  Include options for storage.


You can make the farmhouse an ideal place that fits your dreams.  With romantic features like big balconies, a fish pond, bright skylights, a sun room, a meditation room, a spa with a whirlpool tub or a lookout tower, you can really let yourself go.  A well-equipped kitchen is also essential.  In all, the farmhouse should be the perfect place to rest and have a thrilling time simultaneously.

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Monday, May 30, 2016

Bombay High Court dismissed builders’ plea for concession on affordable housing





                The Bombay High Court on Thursday disposed of a petition filed by a few developers seeking concession in rules that require all builders to construct 20 percent additional small sized apartments in their plots on all projects that are bigger than 4,000 square meters.  The judges held that the government’s decision was correct.

        The division bench headed by Chief Justice Mohit Shah was hearing petitions filed by DB Realty and few other developers, which said that it was not possible to provide 20 percent affordable housing in all projects and it would hinder many construction projects and so this policy should be scrapped.

        It was submitted by the petitioners that restriction on the land owner’s right to develop and construct on his land is arbitrary and constitutes an unreasonable restriction on the petitioner’s right given in the Constitution of India.

        The Judges, however held, we are not satisfied with arguments put before by the developers and disposed of the petitions without granting any relief to them.

        The draft notice of the inclusive housing policy made it mandatory for all owners to develop plots of 30 to 50 square metres to hand over to Maharashtra Housing and Area Development Authority (MHADA) for economically weaker sections and low income groups.

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Saturday, May 28, 2016

ALLOTMENT OF SITES BY THE BDA



Purchasing property in Bangalore involves lot of legal complications.  However, one can avoid legal complications, by buying a property through Bangalore Development Authority (BDA). BDA has become hyperactive and has been distributing the sites in large numbers.  Naturally the people are eager to know the methodology adopted by BDA in allotting sites.  This write up gives the broad outlines of the procedure followed by BDA.

Bangalore Development Authority (Allotment of sites) Rules (1984) govern the allotment of sites.  These rules are periodically modified.

Whenever BDA forms an extension or layout, it offers the sites in such extension/layout to the general public. Wide publicity will be given mentioning the location, number, area and last date for submission of applications.  The details are also published in not less than three newspapers of Kannada and English, which are published from Bangalore, having wide circulation.

BDA is empowered to set apart, 40% of the site to economically weaker section at 50% value of the sites. Out of this 15% of the sites are reserved for Scheduled Castes, 3% for Scheduled Tribes and 2% for the Backward Tribes and remaining sites to economically weaker sections.

BDA may also allot civic amenity sites on lease basis to educational, religious and charitable institutions, which are registered since more than three years under Societies Registration Act, or Trust for public purposes. But such allotment should not be more than 5% of the total site area in each layout. 


Only the persons who have registered their names on payment of prescribed registration fee are eligible to apply for allotment of sites.

If the applicant withdraws the registration, the registration fee paid will be refunded after deducting 10% of the amount paid to the applicant.  Registration once done is valid for all subsequent attempts.

In case the applicant dies after registration, the spouse of the deceased applicant is entitled to apply for allotment.  If the spouse is not alive the dependent children, will be deemed to have registered and have the right to apply for allotment.

The registered applicant or his legal heirs have to apply for allotment of site in prescribed form (Form II).  The applicant should also remit 12.50% of the notified cost of the site along with application as initial deposit.  The initial deposit payable in case of schedule castes, schedule tribes, and backward tribes is 5%.

Correctly filled application along with initial deposit should reach BDA before the time fixed for receipt of such application.  The BDA notification generally mentions the mode of paying the initial deposit, which could be by remitting in certain banks.  Completed application forms may also be delivered at the specified branches of the Bank.

 In case the application is pending with BDA for allotment and the BDA invites applications for further sites, the applicant should again apply in Form No. II (A), but there is no need to pay initial deposit.

Eligible Persons

Only a person who is major, and a resident of Karnataka for not less than 15 years prior to the date of registration, and who or whose family members do not own a site or house in Bangalore, or not allotted any site or house by BDA or Housing Co-operative Societies is eligible to apply. In case of officers belonging to All India Services, whose services are allotted to Karnataka State cadre and residing in Karnataka, for not less than two years immediately prior to the date of registration.

The requirement of 15 years residence in Karnataka is subject to relaxation in case of persons who are residents of Karnataka, but being employed in armed forces serving outside Karnataka, gone out of the state for employment, higher education, but have bonafide intention to settle in Bangalore metropolitan area.  BDA may also waive this condition with the prior permission of the government, in case of persons who have achieved outstanding performance in field of art, science sports or in any other field.

If sufficient number of applicants are not available in category A the balance sites will be transferred to category B, then to category C and then to category H (general public) likewise in the absence of sufficient number of persons in category, F, G, I, the balance sites will be transferred to category H (general public).

The word outstanding achievement is defined as achievement at State, National and International level, where an award or a medal is presented by the authorities duly recognized by State or Central Government.The income criteria in case of scheduled castes, scheduled tribes, and backward tribes is not applicable.In case of the applicants with equal number of attempts the elder applicants will have priority.

The BDA will constitute an Allotment Committee comprising three official members and three non-official members.  The chairman of the BDA shall be the Chairman of Allotment Committee. The allotment of the sites by the committee is subject to approval of BDA.

The BDA reserves its right to alter the value of the sites and the allottee has option either to accept the altered value or decline it.

Post Allotment Procedure BDA informs the allotment of site to the applicant by a notice sent to the latest known address.  The successful allottee shall pay the balance amount of the site value within thirty days from the date of receipt of  notice of allotment. This period may be extended to 60 days only at the discretion of the BDA on a request from the allottee. The interest payable on extended period is 18% for the first thirty days and 21% for the next 30 days. On failure to remit the amount within the extended period, the allotment is liable to be cancelled.

The payment period is three years in case of persons belonging to Scheduled Castes, Scheduled Tribes, Backward Tribes, family of defence personnel killed or disabled during hostilities and whose annual income from all sources does not exceed Rs.11,800/- or belonging to weaker section as notified by the government from time to time.  The balance amount may be paid in three annual instalments without interest.

On payment of the balance amount of the site value, the allottee will get the sale deed duly executed.  The stamp duty, registration charges, incidental expenses should be met by the allottee.  If the allottee is married the sale deed can be  executed in the joint names of allottee and spouse.

Friday, May 27, 2016

Construction firm in the dock for deficient service



        
The Karnataka State Consumer Disputes Redressal Commission has found, Kattada, a Partnership firm in High Grounds, guilty of deficient service and has ordered it to pay Rs.10,000/- as compensation to a consumer for causing him mental distress.

        The Complainant, had complained against the said firm Kattada to the Consumer Redressal Commission and requested it to direct Kattada to execute and register the sale deed in his name in respect of the flat bought by him from them, and to provide a covered car parking area in front of the main building and servant quarters on the terrace as assured by them. The Complainant had also demanded one set of certified copies of the documents of title related to the said flat.

        The Complainant told the Commission that the firm constructed flat No. 301 at RMV Extension, but without the parking area in front of the main building and servants quarters on the terrace. They also did not provide the toilet on the terrace.

        On going through the records and hearing both the parties, the Consumer Redressal Commission  told the firm Kattada to provide the parking area in front of the main building and servant quarters, and to furnish the certified copies of documents of title relating to the flat, immediately to the Complainant.

Wednesday, May 25, 2016

Develop Renewable Energy


There are roughly 3 Lakh Indian villages without electricity.  We can light up these villages at much less cost and without pollution, if we use solar energy.  Fortunately India is having abundant sunlight to do it.  The solar cell technology has progressed fast lately.  It does not require elaborate and heavy transmission lines and transformers. 

The world has woken up to the vast potential of solar electricity, but most of the research has been carried out in western countries, where there is not enough sunshine throughout the year.  But in India, where the sunlight is available throughout the year, there is lack of technology. In generating power, solar technology, biomass and wind turbines must be developed on war footing.  

The see-saw of atomic agreement need not affect us, if we develop these resources.  Every technology is cost incentive in the beginning.  But as they are developed further, they ultimately  become  cost  effective.  We must  invest     in  the  futuristic  renewable  green  energy.   

We  do  not have  enough  oil  or  natural  gas,  the  modern generators  of  power.  But we do have abundant sun light  and  have   enough  raw  materials   for bio-mass.  It  is  time  that  all  our  efforts  should  be  in  the direction  of  developing   these  energy  sources.   

We have  best  engineering  talent  in  the  country,  which should be used to develop this new technology.  The potential for solar mirrors in the north west like Thar Desert and western Gujarat, is enormous.  

Electricity can be generated by assembling the mirrors.  In fact, if honest and persistent efforts are made to develop these non-conventional sources of energy like Solar Energy, we will definitely achieve the energy independence.

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Tuesday, May 24, 2016

Builders and Developers are struggling for the VAT recovery by the Buyers



Burdened by the Value-Added Tax (VAT) demanded by Maharashtra’s Sales Tax Department on all property deals, Developers are struggling to recover the amount from flat Buyers to minimize their tax load.

Some Developers appear to have given up trying to recover the amount from people who have already taken possession of flats, but they are hoping to be able to get this payment from Buyers who have yet to take possession.

According to the President of Maharashtra Chamber of Housing Industry (Navi Mumbai Unit) Arvind Goel stated, “God knows whether they will be able to collect the VAT amount or not. If a Developer tries to recover an amount of Rs.50, 000 by any way of VAT from an individual flat Buyer, he may have to spend as much in litigation. Even after that they are not sure whether they will be able to recover the money.

Goel has VAT dues totalling about Rs. 25 Crore that he is seeking to recover from Buyers who have already occupied flats. Most of these flats are resold and he doesn’t have the facilities to track down these defaulters, send notices, or pursue legal cases.

According to Anand Patvardhan, who has conducted seminars on this matter says, however, Tax Experts are still questioning the reasonableness of enforcement of VAT. It is a violation of the constitution. A flat is an immovable property, so VAT cannot be imposed. This anomaly should be challenged in Court.

Patvardhan had advised flat Buyers to make Right to Information (RTI) applications to get details about the VAT paid by the Developers and also seek a breakup. If the Developer has not paid the amount, one should demand an inquiry, because the Government is responsible for the mess.
Other Tax Experts inform that a petition has been made to the State Chief Minister to rationalize the charge to 1% instead of 5%, but they are disappointed that they have not heard anything yet from the Government.

According to the Managing Director of Puranik Developers, his Office was sending out demand letters to defaulters. They will pursue the matter. Those who have got the possession of the flat will have to pay before getting possession of the flat will have to pay before getting possession. But, in the case of those who have already got possession it will be difficult. I hope they will understand and pay the VAT amount.


Developers are sending these VAT demand letters by registered post with an aim that if the matter goes to Court the registered notices will have a Legal basis

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Rebuilding Our Cities



Physical decay has eaten deeply into the urban areas in the country. Corruptions at every level in civic bodies are doing maximum damage. It breeds crime and delinquency, the result the housing problem remains unsolved. It is apparent that private builders, who by the way, are constructing over 75% of housing stock in the country, are forced to cough up hefty bribes at every stage of building construction. Construction of flats has become costly and out of the reach of general public. This resulted a new breed of investors in flats. In most of the cities old and dilapidated housing stock is on rental basis. And rents in cities like Mumbai are frozen to the year 1940 levels. This was and is the main reason that the repair of the buildings is not possible with the petty rents.

The land lords of such rental buildings cannot afford to the repairs and maintenance of such buildings. But now with the grant of FSI and high property rates there is option to reconstruct them. But the basic question remains to be answered is that as to where the common man will live. In entire south Mumbai a lot of construction is going on but they are all high rise high cost buildings and have no place for common man. The remedy is to create social housing compulsory at least on 40 to 50 % of the old property to be redeveloped in the metro cities. In all major cities in the country, slums are spreading because the common man cannot find affordable housing and hence are forced to live in miserable conditions. In 1999 the draft of National Slum Policy (DNSP) was circulated by the government of India. Since then it has undergone to numerous revisions, but it is yet to be finalized.


In major cities, slums are occupying large tracts of valuable land. The aspect has to be addressed first if we want to rebuild our cities. Among the deficiencies in our national well being, is the accelerated rate of physical deterioration in our cities. The city planners and policy makers must concentrate on these issues and find out ways and means to rebuild the cities, where there is place for common man as well as for the affluent class. Various slum redevelopment schemes floated from time to time by various state governments have so far failed to achieve the objective. So if we want to rebuild our cities, we have to prepare plans to fulfill it, as the rebuilding of cities cannot be carried out with piecemeal approach.

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Friday, May 20, 2016

Managing Retail Space par Excellence



The Indian Retail Industry no longer consists of irregular family run efforts but has evolved into an Organised Well Managed Business off-late. It is of critical importance that this beginning should be properly channeled in a coordinated way, so that it grows. This sector has much potential for growth as only 4% of India’s Retail Industry consists of the organised sector unlike Malaysia, where it is 55%, Thailand, where it is 40% and 20% in China. Consumers, however, have now shown tastes and preferences for an enjoyable shopping experience along with this growth. Now, there is more than 40 million sq.ft. of retail space operating over 130 malls in this country. Within the next 3 years, the development would be more than 100 millions sq.ft. in the fast growing organised retail and within next 5 years, it may reach an average of 200 million. The success of the development now depends on the factors of differentiation and convenience as there is such a large scale of mall supply.

The condition of development of malls in this day is well summed up in the words of the famous General George S. Patton-‘If everyone is thinking alike, then someone isn’t thinking’. Rather than the planning, the speed of construction and marketing are what are typical of the sudden spate in the growth of malls of 4,000,000 sq.ft. from those of 150,000 sq.ft. make up this retail space. There would be a peculiar set of challenges in the operation of each development incumbent upon size, location, ownership patterns and positioning. There would be sharp competition among these malls and the ability of a mall to adjust to the needs of the consumer and provide the needed experience and merchandise to its customers would decide its survival.

The management of the business is what decides the success of malls. Just as Airline Passengers choose which Airline to fly According to the Services provided, Developing a Mall is also akin to establish a business unit. There are many aspects to the management of retail space beginning with the planning, design, infrastructure, trade mix, and tenant mix, operations, planning peak emergencies and marketing. The success and sustenance of the mall depends on each of these.

First of all, the development has to be rightly positioned and it is necessary to pinpoint the Personality of the Development and specify the Target Audience with their requirements. Retailers should be given an outstanding shopping experience. The customers should be given enough reason to make them walk through the mall and Each Zone in it should be Exciting and Enjoyable for them. This would keep the cycle of retailer attraction and customer satisfaction continuing. A mall of an average size would produce Indian Rupee (INR) 6 billion annually and give employment to 800-1000 people. The activity behind the scenes should be well-planned so that it does not interfere with the experience of the customer. Chaos can be avoided by planning services and back end infrastructure in advance. Time spent by the consumer in parking should also be reduced to the minimum by careful planning on the part of the retailer.

A mall should be well-planned so that it can take care of the hardware of the mall development and should carefully choose the trade and tenant mix because it helps in the day to day aspects of the shopping experience. A very patient approach is needed while keeping retailers in the mall. The time factor must always be kept in mind by the Developer and the best retail formats should be brought in. Economic Activity in the Catchment Area must be foreseen and leases planned with different Retailers in a way that will be flexible for re positioning the mall in days to come.

The whole purpose of the mall operating efficiently is to meet the needs of the Shoppers and make way for the success of the Retailers who are the Business Partners. The peak and non-peak business hours or days have to be planned and the malls need Special Staff for meeting the needs of the Shoppers during peak hours, sale time and the festive season for convenience. The benefit of the Retailers lies in the maximum amount of time spent in the mall by the Customer. There should be an effective plan for any emergencies in this business centre to ensure the safety of the Customers. There should be regular safety drills and the mall and Retailers Staffs have to be trained to Assist Shoppers at such times.

All mall operations should be efficient, effective and transparent. Provisions for the Common Area Maintenance (CAM) must be made by the Retailers who run their shops in different malls or they should pay the service charge as it applies to them. The CAM charge should not be made different each month and a budget for the service charge should be made for major repairs well in advance by the Operator of the mall and a yearly budget should also be prepared for the operations. This will bring in discipline to the functioning and give improved control.

The time, when the Shopper decides to enter the shop, and not when he enters, it will be largely influenced by the Retailer’s Treatment of Space. Factors in a high street shop such as the signage, neat footpath, parking ease and entrance into the shop are the initial steps the Customer takes in relation to the Retailer. While selecting and designing the store, it is necessary to consider these points. The Retailers must make sure that there is good signage and clear corridors in the shop what is important is the interaction with the Customer, the easy possibility of looking through the goods and the appearance, display and feel of the store. The layout of the store is the first introduction of the brand to the Customer. The brand’s image can be made or broken through this and therefore needs to be carefully planned. Buying on impulsive is likely to be more frequent in a warm and organised atmosphere.

This kind of organised retail in shopping malls is still a novel idea in India. Few Professionals are available with experience in the field to manage it. There is lack of exposure to the finer aspects of retailing and managing retail realty. It is hard to employ retail Professionals with experience for both Retailers and Developers. To help us to learn, we need to import the knowledge, processes and procedures and for a long term solution, invest in training and making professional courses in order to obtain a suitable pool of talent.

There are innumerable opportunities for Retailers and Consumers given the size of the Indian Retail Market and the increased consumption expenditures and retail sales. The choice of a mall to shop in might become the problematic decision for the Consumer. As there are raising incomes and induction of Western lifestyles, quality and experience matter the most. High Quality and Standards of Services will create a Lasting Impression on the Consumers.

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Wednesday, May 18, 2016

Simplify tax structure

Simplify tax structure


Governments can’t ensure better tax compliance by fiddling with margins and modifying laws each year
Recent data released by the Indian government shows hardly 1% of our population actually pays income tax. The horror that millions are getting away without paying taxes hurts every honest taxpayer. If we want more people to pay taxes, we need a low tax rate, simpler tax laws that do away with most deductions and exemptions, a near complete dismantling of the tax administration, and a government that chooses to be lean.
Taxes pay for defending our borders, fund the police and legal systems, run the legislative and administrative machinery, ensure essential public infrastructure, and provide social benefits to the less privileged. Therefore, when people do not pay taxes, there is no money to run an efficient government. However, there is no evidence to show that higher tax revenues lead to better governance. In the socialistic set up that was India in the early years after Independence, the role of the government was large.However, that did not lead to better outcomes for citizens, with the country being dragged through a period of stagnated economic growth and poverty.There is overwhelming evidence of poor quality , high cost and inefficient delivery of goods and services by the government.The private sector now dominates services that should have been provided by the government, especially in education and healthcare, at much higher costs.This indirect tax impacts the poorer and weaker sections, and this outcome is not related to inadequacy of tax revenue but to the inefficiency in utilisation. Tax avoidance thus becomes a social norm.Citizens utilise resources better for their selfish reasons, rather than hand it over to be frittered away by the government.
Corruption and low tax compliance are related. In dictatorial anarchies where the rulers swindle public money, tax compliance is the lowest. Public welfare is low too in corrupt regimes that run out of money, running costly and poorly administered welfare schemes.The IMF has published a series of research papers, which shows a correlation between corruption and low tax revenue.
A large amount of tax revenue is wasted in corrupt regimes. The tax administration involves personal interactions with tax authorities, who enjoy discretionary powers to review taxes paid, impose fresh taxes and penalties.Tax evaders in collusion with corrupt officials, trade off payments to administrators over tax payments to the government. Corrupt regimes are inefficient in implementation of public projects and do not utilise tax revenues optimally.Time and cost overruns in public projects, poor quality outcomes, and poor selection of vendors lead to misuse of tax revenues. A corrupt administration does not impose the rule of law, or administer taxes fairly, leading to larger number of evaders going scot-free.
It is common for tax regimes to be needlessly complex in design. Research shows how an elaborate system of deductions, concessions, provisions, definitions and exemptions might have actually led to low effective tax rates for the richer class. Those who can afford the services of a tax adviser, and those businesses which can modify structures to reduce tax outgo, exploit the loopholes.It is legal to use tax planning and in a competitive business environment, tax becomes an item of cost to minimise.
Governments respond to poor tax revenues by keeping tax rates high, or by arguing that lowering the tax rates would lead to loss of revenue. Keynes famously likens this attitude to that of a businessman who refuses to reduce the price of his goods, since he is already making a loss. There is enough evidence to show that high taxes are counterproductive. The incentive to produce is reduced, economic output drops, unemployment increases and revenues shrink. Every period in the world’s economic history , where high tax rates were used as a tool to shore up revenue, or bring about income equality, failed.Those who lived through the 1970s India where marginal rate of income tax was 97% would vouch for the ills these punitive taxes unleashed.
We cannot achieve better compliance by tinkering with margins, or modifying sub-sections of tax laws in every annual budgeting exercise. We should be able to implement a tax regime that is not punitive or confiscatory, but basic and nominal. What if we had a very nominal rate of taxation on our income, say 10%, that is paid at source without exception as a direct debit from the bank account through which all payments must flow, with no hassle of filing a tax return?
What if the system of tax accounting, administration, inspection and penalties were dismantled? What if we give up the notion that tax has to focus on the rich, and instead incentivise keeping more of what we legitimately earn? A low rate that is easy to administer and tough to evade would enhance revenues. however, getting the government to use the money responsibly is a different challenge.
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