indian realty laws

Monday, May 28, 2007

"Disputed land aquisition by Developers Prohibited"

There are many instances when we see Developers acquiring disputed land and developing buildings on that land. Noiw the developers acquiring disputed land will be penalised. The urban development ministry(UDM) is planning to check all land deeds of properties acquired by builders. On finding any discrepancies, the ministry will refer it to the judiciary for taking punitive action against such buyers. The proposal is a result of a recent trend where builders are buying disputed land and properties at a discounted value and use illegal means to settle property disputes.

After buying disputed properties, builders use force to acquire them. The government has received several complaints in this regard. In order to check such practices, the ministry is planning to undertake detailed enquiries into the sale and purchase of disputed properties. However, the government is in favour of more stringent scrutiny of land titles than coming out with any specific legislation to curb the practice. “We must distinguish between actual sincere buyers and those who buy properties to speculate on it. In that case, only those instances would be considered for review which appear cagey. The cases after being scrutinised by the urban development ministry can then be referred to the judiciary for taking punitive action against the buyers,” an official at the ministry said.

According to government sources, undervaluation of disputed properties by paying lesser stamp duty, palming off properties with unclear land titles are several such indication of unlawful practices in the real estate industry, which need to be effectively plugged.

So we can hope for a more transparent dealings in our Real Estate System in the coming future.

Thursday, May 10, 2007

Govt clears 16 new special economic zones

The government on Wednesday approved 16 proposals to set up special economic zones from a list of nearly two dozen which had already received preliminary clearance.

Vedanta Alumina, Suzlon Infrastructure, real estate firm DLF and Unitech were among firms given the nod by a state approval board, a government statement said.
London-listed Vedanta Resources is setting up a 1.4 million tonne alumina project in the eastern state of Orissa, but it was not immediately clear whether this was the project cleared.
A senior official said a decision on a proposal by Reliance Industries for an SEZ in Navi Mumbai, on the outskirts of India's economic hub of Mumbai, had been deferred as customs officials wanted further details.

He added the proposal was likely to be taken up at the next meeting of the board on May 31.
Last month, India ended a two-month freeze on approvals of special economic zones, which are large tax-free industrial enclaves created with the aim of boosting industrial growth.
The ruling Congress-led coalition had embarked on an ambitious plan to revitalise industry through SEZs in its quest for 10 percent annual economic growth.

But thousands of farmers across the country had protested against the government's compulsory land acquisition at some sites, claiming they had not been adequately compensated.
In West Bengal, 14 farmers were killed in clashes with police in the village of Nandigram. Ruling communists eventually shelved plans for an industrial park there that was to have been built with the help of Indonesia's Salim Group.

Wednesday, May 02, 2007

Regularization of Unauthorised Colonies in Delhi

Once again the issue of regularization of unauthorised colonies in Delhi on the News. As the process of finalizing the revised guidelines is on following the Union Government's approval for revision in the guidelines for regularization of unauthorized colonies in Delhi. Unauthorized colonies fulfilling the prescribed conditions will be eligible for regularization. Once regularized, as per the provisions of Master Plan, unauthorized regularized colonies would be covered by the Special Area Building Regulations to be framed for special area, unauthorized regularized colonies and village abadis.

Owners in special area, unauthorized regularized colonies and village abadis shall register themselves with the local body within a period of four months indicating the existing extent of construction. Thereafter, a certificate of structural safety by qualified engineers shall be submitted within the next six months. Subject to height restriction of 15 meters, all buildings covered by such registration shall be exempted from punitive action till Special Area Building Regulations for these areas are notified or for a maximum three years, whichever is earlier.

The concerned local bodies/agencies responsible for civic services will provide civic facilities as per their service plans and over a period of time, those colonies will be integrated into the planned development. In view of the legal and administrative issues involved, no time frame has been fixed at this stage.

Source: PIB

Wednesday, April 25, 2007

Reliance seeks time to present its case on SEZ

The Reliance Industries-promoted Mumbai SEZ Pvt Ltd, which is developing a special economic zone (SEZ) over 10,000 hectares on the outskirts of Mumbai, has written to the central government for time to present their case before it.

It may be recalled that the EGoM, which has been constituted under the chairmanship of the external affairs minister earlier this month, had taken a decision to put a cap of 5,000 hectares on the size of SEZs. The EGoM also ruled that there will be no state government-sponsored land acquisition for SEZs.

These two decisions put the future of the two SEZs promoted by the Reliance Industries at Jhhajhar in Haryana and at Panvel near Mumbai in limbo.

Sources close to the development said, “The Mumbai SEZ Pvt Ltd has written to the Centre asking it to give time to make a presentation to show how the project is important for Mumbai, Maharashtra and country?s future.”

The company will also explain to the EGoM how the cap on the size is not feasible and why the state government?s help will be required in land acquisition, sources added.


Source : Business Standard

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Wednesday, April 18, 2007

SEZ's Size - Govt willing to be Flexible in Future but not now

SEZ's are once again back in the picture with "SEZ size" and "land acquiring" being the key issue. Government is willing to be flexible on the limit of 5,000 hectare land area of Special Economic Zones, but not now as decided by EGoM. Reliance will be heavily affected from the limit of 5,000 hectares as it is already acquiring land for two SEZs spread over 10,000 hectares each in Haryana and Maharashtra.

Another party that will be affected by the SEZ size policy is the Tata group, as they have to rethink on plans of setting up a special economic zone (SEZ) in Maharashtra, following the Centre’s recent policy intervention. The Tatas were on the verge of finalising its second SEZ at Sinnar near Nashik. The group is developing an SEZ at Gopalpur in Orissa.

Another jolt for the SEZ developers comes at a time when the Maharashtra Government decided to stop land acquisition by force and abide by the 5,000 hectare cap on SEZs. There will be no land acquisition by force for SEZs in Maharashtra and the Centre's revised policy on the issue would be implemented in the state of Maharashtra. Maharashtra government made it clear that they will follow the 5,000 hectare cap on SEZs as decided by the central goverment. Revised SEZ policy of the Central Government would be implemented "in toto" by the Congress-NCP government in Maharasthra, which accounts for maximum number out of the nearly 250 tax-free economic enclaves approved so far.

The limit put on the size of SEZs was one of the compromises reached at the last meet of Empowered Group of Ministers early this month that led to lifting freeze on them.

Source: Economic Times

Sunday, April 15, 2007

Master Plan with respect to demolitions & sealing

The Central Government has notified the Master Plan for 2021 on 7th February 2007, in exercise of powers under the Delhi Development Act, 1957.

In the context of present crisis with respect to demolitions, sealing, etc. the Master Plan addresses the concerns of the citizens as follows:


Mixed use

Retail shops have been allowed in residential plots on ground floor on mixed use streets and commercial activity on all floors on commercial streets/areas. In addition, small retail shops of upto 20 sqm have been allowed on ground floor, in residential areas, including group housing, A & B colonies, village abadis and unauthorized colonies. Clinics and dispensaries permissible within 20 sqm area in residential areas.

Commercial use existing prior to 1962 and commercial activity to the extent permitted in MPD 1962 has also been protected. Pre-1962 colonies have been equated to rehabilitation colonies within their respective categories.

Nursing Homes, Dispensaries, Clinics, Banks, Nursery Schools, Guest Houses, etc. have been permitted in residential plots subject to criteria of plot-size and Right of Way (ROW) of the road.

No restriction of plot-size and ROW for Nursing Homes, Clinics, Dispensaries and Pathology Labs in Walled City, Walled City extension, village abadis and unauthorised regularized colonies. Relaxation in minimum plot size to 100 sqm. for Nursing Homes, Clinics, Dispensaries, Pathology labs.

Existing schools in non-conforming areas have been given opportunity to continue during next 3 years, subject to regularization. Coaching centres and tuition centres made permissible in residential plots and those in non conforming area allowed to continue till end of May 2008.

List of Professionals who can operate from residential premises has been expanded. It now includes Lawyer, Doctor, Architect, Chartered Accountant, Engineer, Company Secretary, Cost and Works Accountant, Town Planner, Media Professionals, Documentary Film Makers.


Basements may be used for professional activity in Residential areas as well as for shops on notified mixed use/ commercial streets.


Housing

Floor Area Ratio and ground coverage have been substantially enhanced. With a view to providing more space for lower income strata of society, FAR has been enhanced from 225 to 350 for small plots.

Special Building Regulations have been proposed for Walled City, Walled City Extension, Unauthorized-regularized Colonies and Village Abadis keeping in view their historical and special character, subject to a height of 15 m, and punitive action to be precluded till then subject to registration within four months and submission of structural safety certificate within six months.

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Friday, March 30, 2007

Content of an agreement for the sale

Know about the elements need to be included in the agreement for the sale of a residential apartment:

The following particulars should be included in such an agreement:

* The liability of the promoter to construct the flat according to the plans and specifications, approved by the local authority if the building is to be constructed,
* The date by which the possession of the flat is to be handed over to the purchaser;
* The extent of the carpet area of the flat, including the area of the balconies, which should be shown separately;
* The price of the flat, including the proportionate price of the common areas and facilities, which should be shown separately, to be paid by the purchaser of the flat; and the intervals at which installments may be paid;
* The nature, extent and description of the limited common areas and facilities;
* The percentage of undivided interests in the common areas and facilities, appertaining to the flat that is agreed to be sold;
* The statement, pertaining to the permitted use of the flat and restriction of its use, if any;

Every agreement for the sale of a flat should contain these minimum particulars. Such agreement should be accompanied with the true copy of the

* Title Certificate by an Attorney-at-law or Advocate;
* the Property Card or extract of Village or any other relevant revenue record, showing the nature of the title of the promoter to the land on which the flats are constructed or, are to be constructed;
* the plans and specifications of the flat, as approved by the Municipal Commissioner.
* The agreement for sale is required to be registered.