Monday 9 May 2016

DONE - NO GARBAGE AT CONSTRUCTION SITES ASSURANCE BY BUILDERS


                                                       


In the wake of a call by Prime Minister Narendra Modi to launch ‘clean India’ campaigns, and in the context of a debate in the city on how and where to dispose of garbage, the Confederation of Real Estate Developers of India (CREDAI) Karnataka has taken the decision to ensure zero garbage at all of its construction sites.

A recent convention by the confederation members, “Clean India- Skilled India- Strong India”, which was held in Delhi, also called for adoption of zero- garbage policy by all builders coming under CREDAI. Bangalore too will have its construction sites clean by ensuring effective disposal.

CREDAI Bengaluru president C N Govindaraju said the government’s commitment to ensure a clean India was clearly visible from the interactions during the convention in New Delhi. What the government has decided, the conclave too decided to have the same and give a boost to the industry by taking a common stand on garbage.

CREDAI Karnataka president Nagaraj Reddy said: “We have requested all CREDAI-affiliated developers to implement the zero-garbage policy in all their projects. Without treatment, no garbage would now go out of the project site.”

CREDAI secretary Suresh Hari says most of the waste generated in the construction sites is debris and not garbage in the sense of what an individual home produces. 

“Construction waste will be broken bricks, tiles, mud, cement, broken glass, wood, etc, all of which can be recycled. A near 100 per cent of the waste generated from construction sites is recyclable. My estimate is that construction debris is less than 1 to 2 per cent of the total waste generated in the City or even lower than that. You can use material wasted to landscape or greenscape in apartment blocks and even individual homes.”

Hari says the people who collect the debris are in touch with people who run businesses using waste. They look for debris in particular because it is saleable at a lower rate in the second hand markets. 

There are people who wouldn’t be able to afford first hand wood, so they take the second hand wood, get it cleaned and worked on to make some use of it. This second hand market for debris is big and a good source of depositing the waste generated from construction. Basically, its a recyclable waste and the damage caused by it is also minimal.

There are also market yards in the City with space for debris-like material to handle the waste that comes from the construction industry. According to realtors, the proportion of waste coming out of individual homes has always been higher compared to waste generated by construction work.

“It is a misnomer. Because construction of apartments looks big, it is assumed that too much waste is being generated. In actuality, there will be an arrangement with truck owners to collect the waste and give it out to secondary industry. This reduces arbitrary disposal of waste, which is the case with individual homes. There has to be insistence on separation at source, which will solve all problems, because you know which waste has to go where. Awareness has to be increased,” says Hari.

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Advocate Selvakumar
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Saturday 7 May 2016

                            Significant Factors- Office Space

                                                    


Our Country’s commercial and social settling has been transformed by the presence of IT Sector in the Country.  It is looked upon as a most profitable centre for multinational Companies (MNCs) to operate resulting which the prominence of the Real Estate Sector has grown immensely through the years, particularly in the commercial sector. 

There has been a tremendous growth in commercial real estate and it has led to growth in a city or city location as retail, residential and hospitality projects and the same are designed around commercial areas across the country. Certain factors are of critical importance for the end user such as human resource availability, quality of the project, political stability, location, infrastructure of the city and operational costs.

It is not only difficult but complex for companies to select property as it depends on several things. Every Company keeps real estate as one of the key portfolio of its over all strategy as it belongs to the high cost category. Human resource planning, financial planning and operational factors are all interlinked with it.  The location and development that a Company propose as to have several plus points such as physical proximity to social infrastructure like housing, digital connectivity, energy factors and better design and services specifications.

The quality of the project decides the selection of the development. Quality consists of basic construction quality, design efficiencies, infrastructure like Power load and car parking, effective use of IT in running the project, savings in energy and the delivery of the project on schedule.  Redundancies in power and telecom are specially emphasized by these MNCs. 

The feasibility, suitability and acceptability of a Project are determined through exhaustive qualitative and quantitative analyses. A multitude of factors have to be objectively analyzed apart from only pricing. The soaring cost is one of the main hurdles faced by a developer who cannot handle sudden increases in cost and this leads to cost-cutting which affects the quality and delivery of the project.  The cost of construction ranges from between Rs.4,500 to Rs.5,000/- per Sq.ft., to Rs.6,000/- per Sq.ft. Timelines for completion vary according to the project. Availability of labour, plant and machinery besides various statutory approvals affect the project deliveries.

A Company which propose to expand or begin its operations will find that deciding upon the location itself is one of the key elements. As Central and suburban regions in Tier- 1 cities face lower supply, the marks in the peripheral regions have become more eminent. As the operational costs in Tier 2 and Tier – 3 cities is comparatively lower, they are also fast becoming alternate destinations for commercial activities.   

Regions in the periphery around 75 KMs from the centre of metros are more affordable in real estate options than the central or suburban ones. Testimonies to this shift can be seen in certain predominant areas in Bangalore, Hyderabad and in Chennai.  More than 75% of the total supply in Tier 1 and Tier 2 cities comes through the peripheral regions. The costs of land in these areas being much lower might be the obvious reason in comparison to sites closer to or in the heart/centrally located places in city. Expanding in the peripheral region has its own problems such as high costs of transportation, lack of suitable social infrastructure and unwillingness of employees.

MNCs usually prefer peripheral locations as they can bring together their facilities in the form of a campus and thereby make their own environment.  According to statistics peripheral areas have the most new developing projects such as residential townships, shopping malls and other kinds of social infrastructure.  One can witness in the coming years wherein multi-tenanted developments will take root in peripheral locations and if MNCs will be drawn to the infrastructure developments in these regions or whether the MNCs will itself turn to them for making their own excellent campuses.  Integrated townships that are scheduled to be set up in these locations, in Bangalore, Chennai, Gurgaon, Pune and Hyderabad are expected to influence the real estate market in marked manner in the near future. 
  

Cost benefit and availability of talent are some of the factors that are viewed when small cities are considered, as compared to peripheral locations.  Some of the cost benefits are lesser cost of real estate, lower cost of living, anchor tenant opportunities and hardly any transportation costs. Smaller cities have the advantage of possessing a fresh talent pool and this makes them good locations to expand and operate from. Government support is another important benefit.  Smaller cities are often given a fillip by concerned State Governments so hat pressure from metropolitan cities is eased where providing infrastructure is concerned, and they offer free land, fiscal rebates etc., as incentives to them.   Smaller cities also struggle with large scale issues in infrastructure like connectivity to main cities, entertainment areas, cultural problems, quality of transportation, roads and high quality infrastructure.

Corporate requirements have specifications that need more attention and the city selection is not the only part of the location selection. Sectors like marketing, banking etc., that are non-IT sectors usually give preference to city centers or suburbs from which to operate if permitted by the availability and costs. However, IT or IT related companies require a larger amount of space which limits them to peripheral or suburban locations.  A large part of Office development projects occupy space in IT parks. The relaxed floor space index and the speedy growth of the IT and IT related sectors serve to attract more number of real estate developers.

Because of the advantage of location possessed by IT parks in prime areas in a city they are still sought after as they save the cost of transporting employees and give a good working environment.  Small and medium sized companies usually prefer such places as they want to be located in a certain part of a city.  The flexible timelines to develop at the Company’s own pace are offered by campus developments.  As privately owned land has very high prices causing the need for a very large investment initially, setting up own campuses can be rather costly. MNCs usually opt for leasing space unless land is offered in Industrial parks promoted by the Government at subsidized rates.

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Wednesday 4 May 2016

Bangalore HC says no time restrictions; the Builders are relaxed

  BANGALORE HC SAYS NO TIME RESTRICTIONS:THE BUILDERS ARE RELAXED

                                                                       

Granting temporary relief to Builders, the High Court allowed the construction sector in the State to go ahead with its work between 6 am and 8 am and from 6 pm to 8 pm and from 6 pm to 10 pm, the period during which it was restricted from taking up work.

Hearing a Public Interest Litigation (PIL) petition by the JP Nagar 1st Phase Resident’s Welfare Association challenging the permission to a construction firm, the Division Bench comprising Chief Justice Vikramajit Sen and Justice M/s B V Nagarathna granted them temporary relief till March 31, 2013 to carry out works which are not in violation of the Noise Pollution (Regulation and Control) Rules, 2000.

Following an affidavit by the Confederation of Real Estate Developers Association of India (CREDAI), seeking relaxation of time to carry out some of the works which cause no noise pollution or disturbance to the Public, the Bench warned of action in case of violation of the order. The Court observed, “We are optimistic that the respondents adhere to the steps and measures to prevent noise pollution and prevent disturbance to the Civilians”. Stating that the arrangement shall continue till March 31 2012, the Bench said that the same will be reviewed later and if necessary, amendments will be made.

CREDAI had pointed out its affidavit that movement of heavy vehicles had been banned between 7.30 m to 11 am and 4.30 pm to 8.30 pm by the Bangalore City Traffic Police and with the construction activities too being prohibited from 6 am to 8 am and 6 pm to 10 pm, the members under it were facing the problems.

Seeking to imp lead itself in the petition, CREDAI had appealed to the Bench to allow them to carry out construction activities and had assured to keep the noise pollution under check in accordance with the noise pollution rules.

According to the CREDAI, works like tying steel, block works, plastering, painting, landscaping and transportation of materials and removal of debris could be taken up. Some of these works could be taken up without noise pollution, while noise pollution of some of the others could be minimized.

The counsel for the petitioners, in his objections to the affidavit, said CREDAI had failed to implement the code of conduct among its members and that the code of conduct was recommendatory in nature and could not be enforced.
Pointing out that CREDAI had no powers to punish; he said the application did not disclose what action had been taken against violators of its code of conduct.

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Wednesday 27 April 2016

BANGALORE –PROPERTY FOR INVESTMENT, A FINE OPINION.



                                                      

                               



- Keshav Morab

    Property has always been a fine option for investment since long, the next option being only the gold. Both property i.e., lands and buildings and gold prices have appreciated considerably in the past few years. The gold price has since reached almost its peak and perhaps also saturation point. Now, property is the main option or only attraction for investment. Properties in some areas attract more and more investors, particularly the non residents Indians(NRI).The NRIs are showing more and more interest in the immovable properties ie lands and buildings. This  has attracted  many property developers to the realty market in major cities and metros.

        For the past two to three years the property market in Bangalore has shown quite an upward trend. With the entry of property developers from other cities to Bangalore, the demand for land has gone up tremendously. Various new projects are launched and are being launched, almost on regular basis giving a boost to the land prices all around Bangalore. The Demand for residential space has gone up immensely, particularly in the  neighborhood,of IT industries in the north and south Bangalore. Consequently the level land prices and apartments have gone up in those areas.

               The demand for medium class spaces like for 2 BHK (Bedroom- Hall –Kitchen) flats is said to be quite high. The present pricing however of such flats seems to be very high and the builders are indifferent towards the buyers of such medium class spaces. The abnormal prices of developed flats is keeping the people away who look for such accommodation. The developers have been taking up more and more high end projects eyeing  mostly NRIs. The cost of flats in such projects starts from a crore and goes beyond 5.6 Crores.

              Number of property developers are now coming up with projects for development of  plots for independent bungalows and villas on the outskirts of Bangalore all along the outer ring road. The plots and villas developers are said to be with all possible luxuries and costing crores of rupees . It seems there is no limit for luxuries and the price. With all such new projects coming up all over, the skyline of Bangalore is changing totally. The greenery that was seen once is now almost lost and it is  replaced with the multi story building and bunglows. The city has grown beyond imagination of planners, unfortunately the infrastructure that is necessary has not been developed simultaneously and the basic needs like proper roads, water supply, street lighting and public transport etc are denied to the areas where huge Layouts, Shopping complexes, commercial and residential spaces are coming up.

                 With the rapid growth in population of the city due to large scale migration and lack of proper and adequate connectivity people are living in far off places and have to depend on their own vehicles for commuting resulting in increase of vehicles population, now stated to be around Five millon. If no action is taken to develop the infrastructure projects, proper connectivity and required public transport, the situation will further worsen in the  next few years beyond one’s imagination.

           So far as the real estate market of Bangalore is concerued, there is a great demand for commercial and residential spaces, particularly the middle class  people are interested in buying spaces for residential purposes. The property developers may have to consider coming up with more projects, with one and two BHK flats or row houses to meet the demand, which is ever increasing for residential accommodation in particular. 

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Tuesday 26 April 2016

Urbanisation

                                                                       URBANISATION

                                                                               
                                                                           
                                                                                                                                                
 United Nations is keen to bring awareness in governments and the agencies to plan our urban future to solve urban problems including the effects of climate change and enable improvement of living conditions. 

India has 2.3% of the World’s area, but has 17.5% of the World’s population. The population of India was 1.22 billion in the year 2011.It is expected that by the year 2021, India will be the most populous country in the World with 1.6 billion population. 

India’s population is next only to China with 1.22 billion in the year 2011. Urban population in India is 377 million i.e. 31.42% of the total population and rural population is 68.52%.The urban population in Germany is 74% of the total population, 80% in United Kingdom, and 82% in U.S.A. Population increase in India is about 15 million per year, which is equal to the total population of Australia. Addition of 15 million population every year will increase the problems faced if Governments do not match economic activities, infrastructure, and facilities required to cater to the additional population in such large numbers. 

India has the second largest urban system in the World. The urban population by the year 2021 will be about 503 million. The addition of about 126 million urban population by 2021 ie. in another nine years requires provision of employment in non–agricultural activities, affordable housing, water supply, power, and other infrastructural facilities as otherwise the urban problems will increase like; slums, inadequate water, power cuts, traffic congestion, etc. It is expected that the urban: rural ratio will be about  40: 60 by the year 2021..

It is observed that growth of mega cities is rapid in view of employment facilities , better connectivity to other cities in the state and the country as well as foreign countries ,higher educational opportunities, super-specialty health facilities, recreational facilities, etc. in spite of serious urban problems. Small and medium cities are not growing for want of those  facilities. According to 2011 Census , Mumbai was India’s most populous city with 18.4 million persons followed by Delhi with 16.3 million persons, Kolkatta 14.1 million , Chennai  8.91 million, Bangalore 8.72 million, Hyderabad 7.74 million, Ahamedabad 6.35 million, Pune 5.04 million, Surat 4.5 million, and Jaipur with 3.07 million persons. The land and rental values are  prohibitive in large cities. Even middle income families are not able to afford independent houses. One land in Mumbai was sold at Rs. 107 crore /acre during 2011. In Bangalore , rates are quoted in Cantonment area up to Rs.25,000/sft.

The effects of unplanned urbanization is bad. About 23.5% of the population are below the poverty line. Only 67% of the household in India have electrical connection. Regarding the urban services, only about 50% of the households have taps in their houses, and 60% of the households have no sanitation facilities. Why in India such a situation exists sixty seven  years after  Independence  in spite of large budget provisions in five year plans of governments and yearly budget provisions of state governments and statutory agencies, is to be answered by the leaders who rule the Country
The total geographical area of India is 328.726 hectares, out of which agricultural area is 169.659 hectares. In future, only urbanization will take place. Area under agriculture is limited. There is no way to increase   
                                                                                             agricultural land. Gradually area under agriculture  will reduce due to urbanization. Whereas increase in urban space is possible by increasing number of floors in buildings in urban areas. If urban sprawl continues utilizing agricultural lands, food production to meet the requirements of future population will be affected and food grains will have to be imported. It is therefore necessary to conserve the limited agricultural lands by resorting to high density development in urban areas on wider roads. Higher density should depend on the size of the urban area. 

Karnataka had a population of 61.13 million in 2011. It is about 70.2 million in 2012. Bangalore is the only large city in Karnataka unlike Tamilnadu and Maharashtra where there are several large cities. Bangalore is the fifth largest city in India with 8.72 million population  in  the year 2011, and  about 10 million at present.  23% of the urban population of Karnataka are living in Bangalore City. During 1951, it was only 17%. The primacy of Bangalore is increasing due to the urban infrastructure available in Bangalore including connectivity to other cities in India and foreign countries. Investors prefer Bangalore due to this reason. Other cities in the state without the above advantages are not developing and efforts are not being made by Government to upgrade the infrastructure in those cities and attract economic activities. 

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Thursday 21 April 2016

COURT NEWS

                                                  COURT NEWS
                                                            


           
1. On 20th January, 2009, a two Judges Bench in Jai Singh and Ors. v. Gurmej Singh
[Civil Appeal No. 321 of 2009] summarized principles relating to inter-se rights and
liabilities of co-sharers as follows:- (1) A co-owner has an interest in the whole property
and also in every parcel of it; (2) Possession of joint property by one co-owner is in
the eye of law, possession of all even if all but one are actually out of possession; (3)
A mere occupation of a larger portion or even of an entire joint property does not
necessarily amount to ouster as the possession of one is deemed to be on behalf of
all; (4) The above rule admits of an exception when there is ouster of a co-owner by
another. But in order to negative the presumption of joint possession on behalf of all,
on the ground of ouster, the possession of a co-owner must not only be exclusive but
also hostile to the knowledge of the other as, when a co-owner openly asserts his
own title and denies, that of the other; (5) Passage of time does not extinguish the
right of the co-owner who has been out of possession of the joint property except in
the event of ouster or abandonment; (6) Every co-owner has a right to use the joint
property in a husband like manner not inconsistent with similar rights of other coowners
and (7) Where a co-owner is in possession of separate parcels under an
arrangement consented by the other co-owners, it is not open to anybody to disturb
the arrangement without the consent of others except by filing a suit for partition.
The Bench held that “when a co-sharer is in exclusive possession of some portion of
the joint holding he is in possession thereof as a co-sharer and is entitled to continue
in its possession if it is not more than his share till the joint holding is partitioned.
Vendor cannot sell any property with better rights than himself. As a necessary corollary
when a co-sharer sells his share in the joint holding or any portion thereof and puts
the vendee into possession of the land in his possession what he transfers is his right
as a co-sharer in the said land and the right to remain in its exclusive possession till
the joint holding is partitioned amongst all co-sharers.”



2. On 21st January, 2009, a two Judges Bench in Ranveer Singh v. State of M.P. [Criminal
Appeal No.115 of 2009] observed that “the right of private defence is essentially a
defensive right circumscribed by the governing statute i.e. the IPC, available only
when the circumstances clearly justify it. It should not be allowed to be pleaded or
availed as a pretext for a vindictive, aggressive or retributive purpose of offence. It is
a right of defence, not of retribution, expected to repel unlawful aggression and not as
retaliatory measure. While providing for exercise of the right, care has been taken in
IPC not to provide a mechanism whereby an attack may be a pretence for killing.”
“A right to defend does not include a right to launch an offensive, particularly when
the need to defend no longer survived”, the Bench said.

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Wednesday 20 April 2016

Public Notice before purchase of property

                          PUBLIC NOTICE BEFORE PURCHASE OF PROPERTY

                                                             
   

                                                           

It is not uncommon that we do come across publication of notices in newspapers concerning the property transactions. The reason for such publication is to make known to all the concerned people that a particular property is under process of purchase by the Advertiser and to give an opportunity to the affected party to raise objections, if any, against such purchase.

For peaceful possession and enjoyment of the property the Purchaser has to exercise proper care and diligence to ensure that property purchased by him is free from encumbrances, charge and litigation. Any laxity on the part of Purchaser to conclusively find out as to whether the Vendor has good and marketable title and the property is free from encumbrance would land the Purchaser not only in uncalled for litigations but also to financial strain.


At the outset, it may stated that issuance of Public Notice in respect of purchase of an immovable property is not a statutory requirement. There is no hard and fast rule as to the procedure an intending Purchaser has to adopt to find out whether the Vendor has a valid and marketable title and the property is free from encumbrance. The charge or encumbrance created under an unregistered document on the property cannot be discovered from the documents obtainable from the Registering or Municipal Authorities. Charge created by deposit of Title Deeds, Pending Court Cases or Transfer of Property under a will would fall into this category. To protect the interests of the Purchaser upon purchase of the property and to avoid litigations, normally Public Notices are taken out in leading and widely circulated newspapers notifying the intention of the Purchaser to purchase the property in question so that the persons, who have an vested interest in the property could put forth their objections for such sale supported by documentary proof. Such notices are generally published immediately after entering into a Sale Agreement with the Vendor in two dailies one in English language daily and other in vernacular language daily, which have wide circulation in the area where the property is situated. The notice acts as an intimation or information or a caution to all the concerned to facilitate them to take such steps as are necessary to protect their interest.

A notice shall contain the intention of the Purchaser, description of the property with boundaries and the fact of execution of the Sale Agreement, if any. The notice invites the public having interest in the property to file objections along with documentary proof within a stipulated time. The notice shall also indicate that in case no objections are received within the stipulated time, the sale process will be preceded with treating the property as unencumbered with a clear rider clause that objections received after the stipulated time will not be acted upon. The notice must spell out in clear terms the intention of the party with no ambiguity whatsoever.

It is to be noted that the issuance of Public Notice can at best be termed as a precautionary step since, it has no binding force on any one having interest in the property to act in a particular manner. The interested party may not act swiftly in terms of the notice and enforce his right over the property at an opportune time. Further, there is very likelihood that the Public Notice may go unnoticed by the affected party. However, the Public Notice would serve as intimation to the Public that the Purchaser has a bonafide interest in the property and the interested parties can file objections, if any, for the said sale transaction. The Purchaser in his own interest has to get the objections scrutinised by an experienced Advocate having knowledge in property matters so that he can avoid the likely litigations and embarrassment at a later date after the purchase.

Section 55(1) of the Transfer of Property Act,1882 makes it mandatory that the Seller is bound to disclose to the Buyer any material defect in the property or in the Seller’s title thereto, which the Seller is and the purchase in not aware and the Buyer could not with ordinary care discover such defect. But, the Seller for obvious reasons may not truly disclose all the defects in the property or in his title. Therefore, it is advisable that the Purchaser of the property should verify and make search of all the relevant documents and exhaust all the avenues available to him to find out that the property under consideration is free from encumbrance and the Vendor has a good and marketable title.


The Transfer of Property Act, 1882 puts some onus on the Purchaser and in certain cases the Purchaser is deemed to have notice of encumbrances. Section 3 of Transfer of Property Act defines “Notice”. A person is said to have notice of a fact, when he actually knows the fact, or when, but for willful abstention from an enquiry or search which he ought to have made, or gross negligence, he would have known it. According to Explanation I to sec.3, where any transaction relating to immovable property is required by Law to be registered and accordingly registered, any person acquiring such property or any part of or share or interest in the property shall be deemed to have notice of such instrument from the date of registration. The Explanation II to sec.3 stated that any person acquiring any immovable property or any share or interest in any such property shall be deemed to have notice of the title, if any, of any person who is for the time being in actual possession thereof. Further, Explanation III to sec.3 states that a person shall be deemed to have had notice of any fact if his Agent acquires notice thereof whilst acting on his behalf in the course of business to which that fact is material. Thus, notice could be classified into (1) Actual notice when a person has the knowledge of actual fact, (2) Constructive notice, where the information is available on proper enquiry and search, and (3) Notice to the Agent of the Purchaser, where the information is given to or received by the Agent in the course of his ordinary duties, whether he communicates it to his principal or not. Notice to the active partner of a firm has the effect of notice of the firm.

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