Land Acquisition Will Be Valid After Full Payment of Compensation to Land Owner- SC

The Supreme Court, in a landmark judgment has stated that, it has held that if under the 1894 act, reimbursement for land acquired has not been paid to the land owner or deposited with a relevant court and retained in the treasury, then what will happen is that the acquirement will be considered to have failed. Moreover, it will be covered under the 2013 law which entitles the landowners to higher compensation.

The only solace under this law is that granting the reimbursement must be five years or more before the enactment of Land Acquisition Bill for easy adequate Transparency, Rehabilitation and Resettlement Act, 2013. Again the Right (Equitable) to Fair Compensation (Remuneration) or Reimbursement law was intimated on Jan 1, 2014.

Read more on Newly amended Land Bill for Future

What was stated by the bench of Justice R.M.Lodha, Justice Madan B. Lokur and Justice Kurian Joseph in their fresh conclusion in the judgment is that the paying recompense amount to government or depositing in government treasury is of no use. Moreover, it can’t be held to be on the same par with the compensation remunerated to the persons/ landowners interested.

The court has stated that while answering the question what the “true meaning” is of the expression: "compensation has not been paid" appearing in Section 24(2) of the 2013 act.

The court has also stated that the 1894 Land Acquisition Act being "an expropriator legislation needs to be adhered to strictly. The whole mode, manner and procedure for payment of compensation are suggested in Part V (sections 31-34) of the 1894 Act. Moreover, what happens with the collector is that he acts with respect to the payment of compensation.

The court also ruled out stating that under a settled proposition of law, when power is entrusted to execute a particular thing in a assertive approach, the thing must be done in that way or not at all. The court while rejecting the appeal by Pune Municipal Corporation defying the Bombay High Court judgment, by which it has extinguish the possession of 43.94 acres for development of a Forest Garden, stated that the other rules of performance were necessarily ruled out.

On Jan 31, 2008, the award for the remuneration for possess these lands was made. Moreover, to land owners, notices were issued to obtain the compensation. However, they didn’t get the compensation, the amount (27 crore) was deposited in the government treasury.

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Property Market to Be Hit By RBI's Hike in Key Interest Rate

According to real estate developers’, the Reserve Bank's move of hiking the key policy rate will affect the property sales. This is more so in the residential area. Real estate builders were disappointed at the move.

But real estate consultants and firms were pitching that this might be the last round of monetary tightening adopted by the central bank.

According to the Chairman of Confederation of Real Estate Developers Association of India (CREDAI), they stated that they were turned off by the development. He also added that the move might add to the woes of the developers’ community.

He also stated that in terms of liquidity and sales, the market might see its bottom. Moreover, there might be some efforts to resuscitate the economy and market in a strong manner. The builders were intensely looking forward to the March review.

With an intention to control inflation, RBI raised the key policy rate by 0.25 per cent to 8 per cent.This was a move which would mean higher EMIs besides pushing the cost of borrowing for the corporate.

According to Chairman of a realty firm, he stated that it was a very disheartening move by RBI to hike repo rate. This will certainly not help RBI control inflation.

Besides this, he also added that the move by RBI might reassure banks to increase their lending rates. This is already beyond reach of home buyers. This is just going to dishearten home buyers.

Read more : Simple tricks to crack house deal

According to CREDAI-NCR President,he stated that presently there was marked slowdown in the overall economy and the property market. Hence, there might not be too much negative affect on sales.

Another person who was expressed his views was the consultant of Knight Frank who stated that the hike in policy rate was "contrary to the expectations". He stated that this kind of rate increase might lay a negative affect in the short term.

He further added that even though the present inflation figures showed a downward trend, what was higher was the consumer inflation. This was known to be putting pressure on the currency.

Indian Residential Market likely to Grow

According to analysts, after seeing difficult time in 2013, India’s residential real estate sector is likely to observe rise in demand and growth in price.

The demand for residential property in the country was sluggish last year during the borrowing costs and slowing economic growth.

Anuj Puri Chairman and Country Head of Jones Land LaSalle (JLL) India says, currently across the country, the residential estate prices are expected to grow by 10 to 12 per cent year-over-year (y-o-y) in 2014.

According to, a property firm, post general elections in India, an improvement in the real estate market is expected, but until then, some ambiguity would be created.

Mr. Puri also described that post elections in the country, the ambiguity that persists now will come to end. He also added, in the first two quarters of 2014, the consumer sentiment will be sluggish due to the qualms related to the general elections and the global and domestic macroeconomic conditions. But, post general elections, it is likely that the inactive investors would become actively involved in investment activities. The raise in absorption of residential units would lessen the currently piled-up inventories of the developers and builders’.

According to the Knight Frank, a property consultant in order to diminish the piled-up inventories that had reached to 13,000 units in the Indian City of Mumbai, developers in Mumbai reduced the property prices by 25 per cent in the end of 2013, but it also added that real estate market is optimistic.

Shishir Baijal, the Chairman and Managing Director of Knight Frank, India said that the real estate story of India remains to be immensely eye-catching. While the Tier-I cities is considered to be going through a phase of inundation, the Tier-II cities have started to attract investors as the IT sector, infrastructures, and industrial sectors are developing here. Hence, a thought is given about the growth of real estate considering other facts of economy along with it. The concept of expensive properties is for the undeveloped land as it is limited, but still the office space and completed residential projects are available at affordable price in most of the places.

The prices in housing segment are likely to increase by 10 to 15 per cent in this year, says the Vice President of Finance and Investor Relations at HDIL, Mr. Hariprakash Pandey. He also added that the post-general elections, real estate activities will get grow and results of the election will raise the demand in the housing sector.

Mr. Baijal of Knight Frank elaborated that the real estate market would be doing well this year. The drive will remain optimistic, if the investment activities are taken in right line that is by lowering the financial shortage and advanced monetary policies that would be drafted by the Reserve Bank of India (RBI). If these are in place, then nothing can cease us in going on the track of the growth, which is likely to happen in the second half of 2014.

An Overview on Property Tax in India from a Layman’s Point of View

You must give due thought to the fact as to how tax will affect you if you choose to sell or buy property for a living or simply are a first time seller or buyer.

Basically, there are two types of tax rules that are applicable on selling and buying property in India. They are applicable on both long and short term. While on one given thought in India both the long term and the short term tax rate applied on selling or buying of property seems to be the same. However, there is some difference when it came to inflation indexation which otherwise would be disregarded by a quick glance while at the selling buying procedure.

The short term property gain tax comes into force when one purchases a property and sells it within three years. In this type of a situation, one would be required to pay tax on profit gains after reducing money spent on property improvement, transfer cost and acquisition price. What happens with this profit is that it becomes part of the taxable income. Moreover, as per the applicable tax slab, one will have to pay tax on it. Likewise, if it leads to a loss buying of the property and selling it in a short term, then what one can do is, for up to eight years, one can carry forward the loss to claim tax deductions.

On a different scenario, what reflected differently is long term profit gains on property. For more than three years, property sellers who possessed a property can avail the usual deductions of acquisition cost as well as property improvement. However, such adjustments would be inflation adjusted thereby leading to a reduction in the property margins marginally down for a time frame of spreading to more than five years.

One cannot file petition for customary tax deductions, in case of having long term capital gains on property sale in India. But the situation will be different and the capital gains will not be taxed if one is coming to subject to the tax exemption limit.

It is also noticed that when one is making a property deal in India; at that time calculating taxes, exemptions and profits could make the selling buying contract extremely intricate. However, what can help get over such problems is that there are a number of organizations which provide legal ready to use documents.

For more articles on real estate business please visit official website of Properties Reviews and Ratings

A Complete Guideline to Bangalore Occupancy Certificate

Only upon receiving the occupancy certificate (OC),a home buyer can move into his/her new apartment. Usually, Bruhat Bangalore Mahanagara Palike (BBMP) provides this certificate. It is compulsory for each residential complex, which is larger than five units, in order to get hold of the occupancy certificate. Without receiving the occupancy certificate, it is considered unlawful to move into a flat or house.

It is only once the Palike receives information from the buyer or the owner laying stress on the fact that the construction has been completed that the occupancy certificate is processed. Subsequently, the builder is required to fill up an occupancy certificate application form in order to issue the certificate. Moreover, the builder is also required to give in to a few other documents that are listed in our forum “Documents required occupancy certificate Bangalore”.

The BBMP authorities would later examine the complex and later check whether it has been finished according to the permitted plan. It is only after they are satisfied of this fact that they issuance of the certificate is carried out. But, if in case there are any deviations from the plan, up to five percent, then a fine would be levied based on the extent of deviation made. It is only once the fee is paid, that the occupancy certificate would be issued. More details on fine can be checked on, “Occupancy certificate Bangalore deviation fines”.

When do we get occupancy certificate?

Generally, once the construction is completed, the builder of the flat issues occupancy certificate. According to the legal terms, every owner/builder is required to submit an application for the OC within 30 days of completion of the building to the commissioner. Then, the commissioner, informs the applicant within a 30 day time frame as to whether the application has been rejected or accepted. It is a must that the buyer must surely get the occupancy certificate beforehand signing the agreement or moving into the flat.

Is Occupancy certificate important?

Usually, Occupancy certificate(OC) is required by a buyer when he/she is officially moving into a flat. Without the occupancy certificate,it is not legal to move into a flat. In some cases, in case the owner of the flat does not have occupancy certificate, then he/she can be compelled to vacate the flat.

When the buyer applies for a Khata, then occupancy certificate is required. But, it must be noted that the occupancy certificate will not be required for registration of the property during purchase. However, due to this reason, buyers often believe that the occupancy certificate is not that important. It is only when a buyer thinks to apply for Khata, that he/she will face problems procuring it.

Bangalore West is Fast Emerging As the Ideal Real Estate Destination

The last few years saw several peripheral areas in Bangalore turning into popular real estate hubs, and latest in the list is the region coming under Bangalore West. 

A strong example is Rajarajeswari Nagar, which was not a much heard name among real estate hubs, but today the place features among the most sought after places viable for real estate investment.

Bangalore west includes the areas between Tumkur Road and Mysore Road. Tumkur Road has plenty of properties to be sold and accounts for most of the real estate activities in this area.

The development process was a gradual activity of years and was initially for the benefit of employees working in firms located here.

Development was in full-swing in the 2000s. And, today, the area is an ideal destination for realty investors. 

Ongoing public infrastructure enterprises that promoted accessibility via Mysore Road, Tumkur Road, the Outer Ring Road (ORR),BMIC expressway, and the NICE Road have been great contributors.

The nearly-functional Bangalore Metro service and the scheduled Peripheral Ring Road (PRR) plan, have paved way for several existing and different localities to open up for residential and retail development. 

And, the options available here are many. The demand is more for hi-end properties in areas such as Malleswaram, Chord Road and Yeswanthapuram. The takers include IT professionals, large organizations and high net worth individuals.

A 3 bhk apartment in these areas could cost approximately two crores depending on the size, builder, location and nearby localities.

The prime factor behind this is the improved connectivity to many of the city’s commercially crucial locations.

Statistical datafrom Cushman & Wakefield, talks about 25-30 percent appreciation possibilities with about 30 percent of rental returns. All the different housing segments in this region are growing. 

And, residential demand for properties in other sectors is also on the rise in Western areas.

For more article on Bangalore real estate news visit Property Reviews and Ratings official website.

The 5 best property deals in 2013

1. Hindustan Lever House

The purchaser is HDFC

Ramon House has been operating since 1977, Housing development Finance Corporation finally determined to purchase its own office. Deepak Parekh a Chairman had perpetually thought of Ramon House to be lucky. In the month of July, HDFC purchased Hindustan Unilever’s erstwhile headquarters in South Mumbai at Backbay Reclamation. Whereas the worth of the deal was not disclosed.

2. Darshan Apartments, Mumbai

The buyers are Bulchandani family

The cost not disclosed for this deal.
Sea facing apartment in Mount Pleasant Road is the latest deal in the building in Mumbai’s plush Malabar Hill area. The purchasers Bulchandani family in the same complex already owned three more duplex flats.

3. Commercial Real Estate

Abu Dhabi Investment Authority (ADIA) is the buyers

The Abu Dhabi Investment Authority with a strong move is investing USD 250 million in Hines India. Hines, that operates a portfolio of property offices round the world, is beefing up its existence in India. Abu Dhabi Investment Authority has already invested with Kotak property Fund.

4. Cadbury House, Mumbai

The purchase Dilipkumar Lakhi

A Grade-A realty sector property within the heart of the town was perpetually planning to be simple to sell, however the ultimate winner was a surprise. It wasn’t the standard realty suspects however an upscale diamond merchandiser who picked up Cadbury House on Pedder Road for an estimated cost.

5. Express Towers, Mumbai

Purchased by Panchshil Realty and Blackstone India

Blackstone that incorporates a substantial property presence across Country, additional another feather in its cap in November by finding out specific Towers within the heart of Mumbai’s Nariman district of business place. The precise numbers are difficult to come back, estimates counsel that the building was sold-out.

For more articles on real estate business go through Online property ratings official website.

Prediction Over Real Estate Bubble in 2014

2013 was involved in existing challenges like lowered sales, bundle of unsold inventory and developers going bankrupt. These issues can continue in 2014 and given economic instability may become worst. However, it's terribly troublesome to forecast something in India because the realty market isn't subject to a hard and fast pattern. A good degree of political uncertainty, high interest rates liquidity issues and cautious sentiments are predicted to support the realty market in 2014 too. The sole positive energy during this sluggish sector springs from the very fact that the sales, though slow, don't seem to be constant.

India’s realty sector has been fluctuating from some times because the economy is been under stress. Realty sector costs have been billowing in associate unexampled manner not like financial gain levels that are not increasing. The cost increase is usually uncertain and may be attributed to the generally capital-driven nature of the arena.

It is a longtime undeniable fact that the realty sector bubble within the developed world could be a creation of the central banks’ strategy of maintaining interest rates at a really low level. This excess cash has conjointly trickled into the real estate sectors of rising economies as overseas investors began to appear for alternate investment avenues.

Due to the asset cost bubble not all the geographies are affected, people who don't seem to be influenced are those that haven't attracted a good deal of investment. This can be where the flow aspect of realty comes into effect. Few land deals in the city center can affect rapidly increasing of land value though troubling the urban economic balance.

The government is coming up with different ways to pervade funds in to the market, due to reasonable factor for the customers and the never ending liquidity crunch. Just in case extra money is obtainable attributable to more FDI or other alternative methods, we have a tendency to could see the method of correction being delayed and the market changing into inefficient. And if real estate fails to attract the cash, then a keen correction can follow and affordability is going to be maintained.

Including real estate market no other asset class can stay high for an unlimited time. At some purpose, these can become sufficiently big for a crash. A sudden fall, however, can be prejudice to the money system and the economy at huge. So a slowly deflating bubble which suggests a phased worth correction is really one thing that's fascinating, and 2014 simply appears to be a ripe time for that.

For more articles on realty news and update go to Properties Reviews and Ratings official website.