POLICIES IN PUDUCHERRY Submitted By Raj.

REAL ESTATE MANAGEMENT
POLICIES IN PUDUCHERRY

Submitted
By
S.Rajsekararan.
M.Arch II Year
School of architecture & Interior design
SRM UNIVERSITY

REAL ESTATE MANAGEMENT

POLICIES IN PUDUCHERRY:

Situated on the Coromandel coast, about 160 kms south of Chennai, lies the Union Territory of Puducherry. The French ruled this territory for 300 years, and today, it stands as a living monument of the French culture in India. It is bound on the east by the Bay of Bengal and on the other three sides by the South Arcot District of Tamil Nadu. About 150 kilometres south of Puducherry, on the east coast, lies Karaikal, while Mahe is situated on the Malabar coast. Yanam is situated in the adjoining East Godavari district of Andhra Pradesh.
The ashram, founded by Sri Aurobindo in the year 1926, has brought international reputation to this coastal town.

ACTS IN PUDUCHERRY:
THE PONDICHERRY TOWN AND COUNTRY PLANNING ACT, 1969
to provide for planning the development and use of rural and urban land in the Union Territory of Pondicherry and for purposes connected therewith.. BE it enacted by the Legislative Assembly of Pondicherry in the Twentieth Year of the Republic of India as follows:-
It extends to the whole of the Union territory of Pondicherry.
It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint.
Pondicherry Town and Country Planning Board: As soon as may be, after the commencement of this Act, the government shall by notification in the Official Gazette, constitute for the purpose of carrying out the functions assigned to it under this Act, a Board to be called the Pondicherry Town and Country Planning Board.
The Minister-in-charge of Town and Country Planning and the Secretary to the Government-in-charge of the subject shall be the Chairman and Vice-Chairman of the Board.
The Board shall consist of give officers, including the Senior Town Planner and three non-officials to represent the communes to be nominated by the Government. The Senior Town Planner, an ex-officio Member, shall be Secretary to the Board.
Declaration of Planning areas, their amalgamation, sub-division and inclusion of any area with planning area.
The Government may, by notification, declare any area in the Union Territory to be a planning area for the purpose of this Act, and on such declaration this Act shall apply to such area.
Every such notification shall define the limits of the area to which it relates.
The Government may, after consultation with the Board and the Planning authority concerned, amalgamate two or more planning areas into one planning area, sub-divide a planning area into different planning areas and include such divided areas in any other planning area.

PREPARATION OF LAND USE MAP AND REGISTER
Preparation of existing Land and Building Use Map and Register. As soon as may be, after its constitution, every Planning authority shall, not later than six months after its constitution or within such further period not exceeding six months as the Government may allow, prepare a Present Land Use Map (hereinafter called the Map) and Present Land Use Register (hereinafter called the Register) in the form to be prescribed, indicating the present use of every piece of land in the planning area and the present use of every building therein.

DEVELOPMENT PLANS
Interim Development Plans: As soon as may be after the declaration of a planning area, the Planning Authority shall, not later than one year after such declaration or within such further period as the Government may, from time to time extend but such extension being not exceeding two years, prepare and submit to the Board and the Government, an Interim Development Plan for the Planning area or any of its parts.

DETAILED DEVELOPMENT PLANS:
Declaration of intention to make or adopt a Detailed Development Plan. A Planning Authority may, by resolution, decide to prepare a Development Plan to be called Detailed Development Plan in respect of any land within the Planning Area;
to adopt with or without modification even a Detailed Development Plan proposed by Co-operative Societies or any of the owners of any such land.

THE PONDICHERRY TOWN AND COUNTRY PLANNING RULES, 1974:
Constitution of the Board : The Board shall be constituted as provided in section 3 of the Act. (2) In the case of a member nominated under sub-section (3) of section 3 to represent a commune shall cease to be a member of the Board if he ceases to be a member of the commune which he represents.

PLANNING AUTHORITY, ITS CONSTITUTION, POWER, ETC.
Constitution: The Planning Authority for each planning area shall be constituted in accordance with the provisions of section 11 of the Act.

PRESENT LAND USE AND DEVELOPMENT PLANS
Map and register showing present land use: The map prepared by the Planning Authority under section 17 showing the present land use in the planning area under its jurisdiction shall contain the following particulars:
Land and Acquisition and Development Scheme:
Under this scheme, 873 plots for various income groups were developed and allotted to general public on“No Loss, No Profit” basis.
Slum Upgradation Programme:
Under this scheme the total number of flats constructed and allotted to the slum dwellers is 1582 Housing Board Grants-in-aid scheme: the Puducherry Housing Board, constituted during the 1973, is provided with Seed Capital to meet out the short fall in implementing Housing Schemes for Various Categories of People, viz, Low income Group, Middle Income Group.
Perunthalaivar Kamarajar Housing Scheme for Houseless Poor:
Under this scheme so far 150000 beneficiaries have been given a financial assistance of Rs.40,000/- each for construction of houses.
The Puducherry Chief Minister’s Sanitation Scheme for Grant of Financial Assistance to Below Poverty Line Families for Construction of Sanitary Latrines:
Under this scheme 3000 beneficiaries have been given a financial assistance of Rs.10,000/- each for construction of their sanitary latrines.
Training to Artisan / Masons: Under this scheme so far training has been imparted by the Building Centre, Villianur to 276 Nos. of skilled / unskilled labourers in cost effective building construction technology and manufacture of cost effective and environment friendly construction materials.
Capital Development Project: New Bustanad at Orleanpet, Market Complex at Aziz Nagar, Office (Town and Country Planning Department) cum Shopping Complex, Night shelter over the Grand Canal at Genge Salai for the companions of patients and improvement of link road connecting Vazhudavur road and NH-45 A were developed
Traffic and Transportation scheme: Improvements to important roads and junctions, installation of signals and sign boards and model bus stops have been done under this scheme.
Environmental Improvement in Urban Slums: Under this scheme, 1,11,959 m of road, 1,00,559 m of drain, 162 community baths and 333 community latrine were constructed. In addition to the above, 100 water taps were provided in Slum areas

REAL ESTATE POLICIES:
With a small industrial inheritance of 3 textile mills Puducherry has come a long way. Now it has 7553 industries representing a cross section of industries.
Seven well established industrial estates with comprehensive infrastructure facilities propelling the Industrial growth of Puducherry.
Spectacular performance at export front. Principal export items are Leather, Chemicals, Textiles and Metallic products.
Government of Puducherry also provides very good infrastructural facilities of roads, electricity and water supply.
Above all Puducherry has very informal work culture where all government executives and even Ministers are easily approachable.
Puducherry provides a peaceful and quality work force with no hassles of trade unions.
And all this has made Puducherry a heaven for existing and new industrial units.

INDUSTRIAL POLICY :

The policy takes note of the fact that the Union territory of Pondicherry has come a long way since its merger with the Union of India in 1954. The present status of Industrial progress is highly encouraging and the territory is poised for another phase of industrial growth. The policy is based on the following objectives: (i)To promote sustainable industrialisation in the territory; (ii) To improve the standard of living and quality of life of the people of the Union territory; (iii) To conserve the environment of Pondicherry for sustained and rapid industrial growth; (iv) To participate in the globalization of the economy with greater exports and imaginative imports; (v) To take advantage of the special features of Pondicherry including its heritage and culture; and (vi) To ensure balanced industrial development in all the regions of the territory.

INDUSTRY STRENGTH :

Puducherry is already known as “Hardware capital of India”. Almost all the majors in the Hardware industry such as Lenovo, Acer, WIPRO, HCL, HP have set up their unit in Puducherry.

INVESTMENT OPPORTUNITIES :
With pro-active investment policies and industry-friendly Government, Pondicherry has made rapid industrial progress in the past few decades. Vast and unlimited business exists in the Union Territory of Pondicherry which can be tapped by prospective investors. The inherent potential and the conducive atmosphere augur well for Pondicherry to build a partnership of trust with the investors by helping to realise their dreams.Potential sectors for investments:- 1. Information Technology and software Development 2. Electronics 3. Agro processing including marine products 4. Textiles including garments 5. Leather Products and Foot wears 6. Light Engineering including Auto Components

POWER SCENARIO AND AVAILABILITY :
The Union Territory of Puducherry consists of four enclaves which are widely scattered in the three Southern States viz Puducherry and Karaikal enclaves in Tamil Nadu, Mahe enclave in Kerala and Yanam enclave in Andhara Pardesh. Puducherry which is the headquarters of the Union Territory is located 160 Kms down South of Chennai while Karaikal is located further down South at about 160 Kms from Puducherry. Mahe is located horizontally opposite to Puducherry on the Western coast at about 647 Kms from Puducherry and 58 Kms from Kozhikode, 24 Kms from Kannur in Kerala State. Yanam is located up North of Puducherry on the eastern coast at about 870 Kms from Puducherry and 24 Kms from Kakinada. The requirement of Power for the Union Territory is met from the allocation of Power from various Central Generating Stations (CGS), purchase of power from neighbouring State Electricity Boards and from the State owned Pondicherry Power Corporation which is running a 32.0 MW Gas based power plant in Karaikal region.

FINANCIAL INSTUTIONS:
There are 124 bank branches operating in the Union Territory of Puducherry.
Commercial Banks have 101 branches, Puducherry State Co-Operative Bank with 20 Branches, 1 branch of Puducherry Central Co-Operative Land Development Bank, PIPDIC and SIDBI are extending their services to the people of Union Territory.
By implementing the National Pilot Project for Financial Inclusion, the banks in UT of Puducherry have achieved the unique distinction of providing banking facilities to all the eligible and willing households. They are doing their best for augmentation of resources of the Union Territory and meeting the credit demands of the various sections of population for overall development of the Union Territory.

INVESTMENT OPPORTUNITIES:
The following are the key areas earmarked for promotion by the Government of Puducherry.
Health centers and spas
Food courts and restaurants
Eco-tourism
Convention centers
Amusement parks
Beach resorts
Entertainment multiplexes
Arts & Crafts village
Yacht and boat marinas
Heritage and star hotels
. Boutiques

SEZ POLICY:
An exclusive integrated industrial and residential township. Christened as SEZ DE PONDY, the Special Economic Zone (SEZ) project comprises of an area of 860 acres. The entire project – master planned by internationally acclaimed “Jurong Consultants Pte”, Singapore, with a well planned development schedule, will ensure that the “ City within City” develops in a planned phased manner. SEZ DE PONDY provides excellent modules of eco-friendly and healthy environment for the development of business communities.

India real estate monitor

Property buying
1. Choosing the right property
2. Buying a Pre-Launch property
3.Broker's Fees
4.Token Money
5.Preparing the Budget
6.Down Payment
7.Bank Loan
8.Property Registration
9.Flat Possession
10.Facilities provided by the builder
11.Housing Society

India real estate monitor

Class 10 | 15-9-2010 | Real Estate Valuation

What is Real Estate Valuation?

When would it be done?

- feasibility analysis

- property transactions

- business transactions

- setting market price

How is it done?

- determine the location of the property

- age of the property

- physical condition of the property

- ownership details

feasibility

- land-use and development regulations

- market analysis

- repairs required

property transactions

- market analysis for similar property in given community/ region/ city

business transactions

- market analysis

- suitability for usage

- depreciation on building value

setting market price

- market analysis for similar property in given community/ region/ city

- amenities

Assignment due 22-9-2010

1. Identify the different Real Estate firms in India.

2. List their activities in India.

3. List their activities in other countries.

4. Research at least one report from the research database of each company.

Policies & Regulations of Maharashtra State

Policies & Regulations of Maharashtra State
That affects the Real-Estate decisions

Introduction
Located on the western coast of India, Maharashtra is India’s third largest state in terms of area and second largest in terms of population after Uttar Pradesh. It is bordered by the states of Gujarat, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka, Goa and the union territory of Dadra and Nagar Haveli. Mumbai, India’s largest city is the capital of Maharashtra and the financial capital of the country.
Maharashtra is among the few states in India whose GDP is predominantly contributed by the industries and services sector, with nearly 89% of the state’s GDP in 2004-2005 being contributed(1) by these sectors. The key industries of the state include food products, beverage, tobacco, cotton, textiles, paper and printing, petroleum, coal, chemicals, pharmaceuticals, metal products, (2)electrical machinery and apparatus, transport equipment, etc.
Over the last decade, Maharashtra has witnessed a sharp rise in the level of literacy. The decade of (3)1991 to 2001 saw a rise in the literacy levels from 64.9% to 76.9%. This period also witnessed a 3.01% Compounded Annual Growth Rate (“CAGR”) in terms of urbanisation. The percentage of urban population(4) rose from 38.69% in 1991 to 42.43% in 2001.
Maharashtra is also one of the highest recipients of foreign direct investment (FDI) in India. The total FDI inflow during the period January 2000 to July 2006 for Maharashtra, Dadra & Nagar Haveli, and Daman & Diu was 23,718.14crores which constituted 22.16% of the total FDI inflows in India(5).

Regulatory Environment Relating to Purchase of Land
The purchase of land in the region of Greater Mumbai is mainly governed by the following key regulations, namely:
1.Maharashtra Agricultural Lands (Ceiling on Holdings), Act 1961;
2.Bombay Tenancy and the Agricultural Lands Act, 1948; and
3.Urban Land (Ceiling and Regulation) Act, 1976.
The various legislations inter alia, provide for imposition of a ceiling on both ownership and possession of land. The ceiling is applied on a graded basis, according to further sub-classification of the land. The restrictions imposed are vast and depend upon various criteria being the type of land, the geographical location, etc.
The restrictions on acquisition of land in specified areas depend upon the location of the land, the type of land, the existing use, the proposed use after acquisition and local policy governing the area. There are separate legislations/ policies relating to type of land and development of land located in the coastal areas, no-development zones, agricultural land, etc.

1. Maharashtra Agricultural Lands (Ceiling on Holdings), Act 1961(“MALCHA”)
The MALCHA places prohibition on holding land in excess of specified ceiling and restriction. The ceiling area for each class of land in the districts and talukas are provided in First Schedule of the MALCHA. The MALCHA specifies certain types of lands which are exempted from the (6) provisions of this Act, for e.g., lands held by an industrial undertaking for a bona fide industrial or non-agricultural use.

2.Bombay Tenancy and the Agricultural Lands Act, 1948 (“BTALA”)
Chapter V of the BTALA provide for restrictions on holding agricultural land in Mumbai area of state of Maharashtra.

3. Urban Land (Ceiling and Regulation) Act, 1976 (“ULCRA”)

Processes for obtaining approval for conversion of land in Greater Mumbai: a. Procedure for conversion of land from agricultural to commercial purposes:
The BTALA provides that no sale, gift, exchange, lease or mortgage of agricultural land in favour of a non-agriculturalist shall be valid unless the prior permission of the collector is obtained for (7) such purposes. However, transfer to non-agriculturist can be made for bona fide industrial use without the permission of the collector subject to the location of the land and other terms and (8) conditions as provided there under. A similar provision is made under the Maharashtra Land Revenue Code, 1966 (“MLRC”) which provides that it is mandatory to obtain the permission of the collector, if it is intended that the use of (9) the land be converted from agricultural to commercial use. The permission to convert the use of agricultural land to non-agricultural purpose or to change the use of land from one non-agricultural purpose to another non-agricultural purpose may be granted by the collector after consulting with the planning authority or any other authority as the state government may direct and subject to other terms and conditions of the laws in force for the time being.
In the event of the collector granting permission for conversion of use of land on certain conditions, any breach of conditions on which the conversion of use of land is permitted, may make the land inter alia liable to be forfeited under BTALA or MLRC, as applicable.
Some of the conditions for conversion of use of land that could be prescribed by the collector are as follows:
>Land shall not be used for any other purpose than the purpose for which permission is granted;
>Permission shall be subject to the code and rules of MLRC;
>Applicant shall commence the non-agricultural use applied for within one year from the date of the order made by the collector, failing which permission granted will be deemed as lapsed;
>Applicant shall be liable to pay altered assessment charges as applicable; and
>Where permission is granted for construction of a structure to be used for any non-agricultural purpose, such structure shall be constructed in accordance with the plan approved by the planning authority or the village panchayat or subject to such rules as prescribed under the code.

b. Procedures for conversion of land from non-commercial use to commercial use:
Any application for change in use of land from non-commercial use to commercial use has to be made to the planning authority (municipal corporation or municipal council, within whose area that land is situated or to the collector if the land is not comprised within the municipal corporation or municipal council as provided under the Maharashtra Regional and Town Planning Act, 1888 (“MRTP”) (10) or to the collector as provided under MLRC, as may be applicable.
Permission for conversion of land shall not be granted otherwise than in conformity with the provisions of the draft or final regional plan/ development plan of the area. In the event a person intends to execute a special township project on any land; an application may be made to the state government. The planning authority may grant permission, subject to general or specific conditions as it may impose, with prior approval of the state government. The planning authority shall be guided by the building bye-laws and development control rules. The permission (commencement certificate) granted by the planning authority shall contain all conditions, subject to which approval is given. The planning authority is the local authority i.e. the Bombay Municipal Corporation (“BMC”) or any other authority as the case may be.

Regulations applicable to assignment of development rights from a land owner to a real estate developer:
The regulations regarding transfer of development rights from a development agreement executed between owner of the land and developer, vary depending upon the manner of construction and use of land, for ex., whether it is residential, commercial, industrial, etc, and whether the land is owned by the state or is it privately owned. Hence, the regulations applicable will be The Indian Contract Act, 1872 and The Transfer of Property Act, 1882. If use of land is for residential purposes, the manner of construction, ie whether the association to be formed shall be a co-operative society or a condominium or an association of persons would also determine which Act/regulation would be applicable. However, in general, a real estate developer would have to obtain various approvals and permissions from the municipal body and other authorities, obtain approval in respect of its plan, appoint licensed surveyors, architects, structural engineers, etc, and abide by the rules, regulations and provisions of the particular legislation as may be applicable.
Development of commercial / residential/ Cineplex projects in Greater Mumbai: There is no uniform state policy for allotment of land to private developers, however, provisions relating to lands not owned by others would be governed by MLRC and rules framed there under. The Revenue Department and the Department of Industries of the state government typically deals with allotment of land to private developers. In certain cases, the state government has allotted certain portions of self-owned land to various corporations established by the state, such as, Maharashtra Housing and Area Development Authority (“MHADA”), City and Industrial Development Corporation (“CIDCO”), and Maharashtra Industrial Development Corporation (“MIDC”).
Each of these bodies have been constituted by the state for different reasons, for eg, MHADA has been established by the government to provide mass housing to the poor at affordable rates and to consolidate the law relating to housing, repairing and reconstruction of dangerous buildings. Also, each corporation has its own internal procedures and guidelines relating to allotment of land. Hence, the policy of the state with respect to allotting land parcels to private developers for development of residential, commercial or Cineplexes would vary according to location of the land, existing use of the land, purpose for which land is sought to be developed, etc. The state government also regularly issues notices, policies, and circulars as may be required for each of these corporations established by it.
The general trend of state policy is that allotment of land has to be approved by the state government and usually, land is allotted on a tender basis. However, some corporations like CIDCO and MHADA may also allot land on a first come basis.
The procedure for allotment of land would vary depending on the location of land, the purpose for which the land is required, the owner of the land, etc. Also, the state usually invites tenders from public prior to allotment of land. The same may not always be true for corporations since corporations may be guided by their own internal procedural policies.

Restrictions imposed disallowing land use for purpose other than that for which originally settled:
Under the Development Control Regulations for Greater Mumbai 1991 (“DC Regulations”), the state government has imposed restrictions on development of land which is set apart for specific purposes only, for eg, land has been demarcated as agricultural, residential, commercial, no development zone, land for tourism, land situated in coastal areas, etc. However, the various state legislations usually have a proviso wherein conversion of land is permitted subject to terms and conditions enumerated in the respective legislations.
Also, there are certain plots of land which have been reserved for certain purposes and cannot be put to any other use, for eg, land reserved for slum rehabilitation, SEZs, etc. These lands have been reserved for specific purposes and legislation governing the same usually does not permit conversion of such lands.

Regulatory environment relating to development of property:
MRTP is the primary legislation which governs and regulates land use and development of property in Maharashtra. Each municipal corporation in Maharashtra enacts its respective municipal corporation Act and development control regulations to further regulate the development of land falling within its jurisdiction. Consequently, the provisions of legislation regarding land development would primarily depend on the geographical location of the land and authority within whose jurisdiction specific land falls. The development of land in Greater Mumbai is mainly governed by the DC Regulations, framed under MRTP. The other development control regulations framed by various municipal corporations within Maharashtra will primarily be similar to the DC Regulations.
The DC Regulations have specified detailed guidelines in relation to development, redevelopment, construction, reconstruction, mode of construction, design of the building, different uses, change of user, Floor Space Indices (“FSIs”), and for all other matters incidental thereto(11) for development of immovable properties situated within the territorial jurisdiction of Municipal Corporation of Greater Mumbai (“MCGM”).
All land in Greater Mumbai is earmarked for specific uses. The usage and manner of development of land, as provided in the DC Regulations, demarcates the 4 corners within which the developer can undertake his development activities.
The FSI in relation to any property is the development potential of that property. To illustrate, when it is said that the developer is entitled to develop a particular property, in substance, it means that the developer is entitled to utilise the FSI available in relation to that property. Further, the FSI available in relation to a property is a key factor in determining the property’s valuation.
The DC Regulations(12) define the term FSI as follows:
FSI means the quotient of the ratio of the combined gross floor area of all floors, excepting areas specifically exempted under the DC Regulations, to the total area of the plot. No uniform FSI has been specified for carrying on development activities within the territorial jurisdiction of Greater Mumbai. The development potential for every individual property varies depending upon the property’s location and permitted use.

Regulations applicable for town planning for commercial/residential development:
In Mumbai, the town planning and development regulations are provided under the MRTP, read with the DC Regulations. Under MRTP, the planning authority shall within a specified time conduct a survey, prepare an existing land-use map and prepare a draft development plan for the area within its jurisdiction in accordance with the regional plan. The development plan indicates the manner of regulation of land use allocation and development. This development plan, after being sanctioned by the state government, forms the blue print for development of the land covered in it.
The DC Regulations provide for certain exemptions ie the circumstances when existing non-conforming uses are permitted to continue. Further, the allotment and development of land for residential or commercial purposes are also governed by various specific legislations being:
• The Maharashtra Housing and Development Act, 1976 (”MHADAA”);
• The Metropolitan Regional Development Act, 1974 (“MRDAA”); and
• The Maharashtra Industrial Development Corporation Act, 1961 (“MIDCA”)
Special planning authority is appointed pursuant to these legislations and MRTP for specified purpose as stated therein. Depending upon the area where the land is located and the type of development activity to be undertaken, the appropriate legislation can be identified which would govern such development activity.

RELEVANT STATE POLICIES
SEZ Policy:
The state has drafted a SEZ policy with the intention of developing exports, whereby many concessions are proposed to be given for development of SEZ zones, including land benefits and fiscal benefits. Further, a single window approval is envisaged for applying for the various approvals and NOCs required. The draft policy is yet to be enacted.

IT Park Policy:
The state has an IT and ITeS policy for development of IT parks and has prescribed various incentives included as below:
• Software industry will be allowed in residential, industrial and commercial zones;
• Software industry will be included as one of the permissible users in the “No Development Zone”;
• 100% additional FSI for software technology parks set up by public bodies on payment of premium amounting to 25% of the market value;
• No MPCB clearance required for software units; and
• No stamp duty on property transactions within designated software/ info tech parks as well as on instruments of software companies such as lease documents, issue of shares, etc. Registration charges not to exceed INR 1,000.

Industrial Park:
MIDC has an industrial policy for development of industrial parks and has prescribed various incentives included as follows:
• Stamp duty exemptions;
• Exemption from non-agricultural assessment charges;
• Emphasis and special benefits for cluster based development by reserving some areas within its areas for specific industries and their ancillaries;
• Emphasis on co-operative industrial estates, such estates shall be granted FSI as is applicable to MIDC areas;
• Common Application Form (“CAF”) for all aspects relating to development;
• Permission to purchase agricultural land exceeding 10 Ha for bona fide industrial purpose; and
• Exemption under section 20 of the ULCRA;


RELEVANT TAXES & DUTIES The state regulations relating to payment of various local taxes and levies would depend upon the location and use of property in question. Governing laws for imposition of municipal taxes and cesses, village panchayat taxes, land revenue, and agricultural taxes would primarily include the following: MLRC, The Bombay Village Panchayats Act, 1958, the municipal laws of a corporation/ council for its jurisdiction, for eg, The Mumbai Municipal Corporation Act, 1888 for Mumbai city and the rules framed under the respective Acts.
The authority which is authorised to collect the taxes/ levies would be either the collector or the commissioner of the corporation/ council or any other authority constituted for collection of revenue by the pertinent Act. The different taxes, such as property taxes are charged at the rateable value of the property which is assessed on several factors such as purpose of land, whether it is put to agricultural use or industry or commerce, area of land, location of land and is subject to periodic review.
The state government does offer various incentives/ rebates and relief for certain kinds of properties for developers taking certain initiatives for specified lands or putting the land to use for some public purpose, eg SEZs, hospitals, IT parks, etc. The rebate and relief would hence differ, accordingly.

Stamp Duty:
Provisions governing stamp duty and registration fees are found under the Bombay Stamp Act, 1958 (“BSA”) and the Registration Act, 1908 respectively. Article 25 of the BSA deals with the purchase and sale of land, Article 36 deals with lease of the land and Article 36A deals with leave and license agreements. In case of purchase or sale of apartments, there is no change in the stamp duty payable in case of apartments falling under Maharashtra Co-operative Housing Society's Act, 1960 or under Maharashtra Ownership Flat and Regulation of Promotion and Construction Field Management and Transfer Act, 1993 or provisions of the Maharashtra Apartment Ownership Act, 1980 and is based on the value of the apartment.
In case of authority of powers to a promoter/ developer for construction on, development of or sale/transfer of any immoveable property, Article 5 (g-a) is attracted. Article 36 deals with stamp duty payable on lease of land and varies as per location of property and not as per usage of property. Stamp duty payable on leave and license agreements, depend upon both, location and usage of property. Article 25 deals with stamp duty payable on purchase and sale of property which is based on location of the property and not on the usage. In case of registration fees, the same varies from instrument to instrument and does not exceed INR 30,000.
There is no specific category on stamp duty for cineplex projects. However, stamp duty will be attracted on the basis of instruments for the projects.

Incentives offered by state:
The centre and various state governments come up with various policies with incentives and exemptions prescribed therein for development of specified sectors. The policies, incentives and exemptions vary depending on the sector proposed to be developed. For eg; Maharashtra currently has IT and ITeS policy prescribing various incentives and exemptions for development of IT sector by constructing IT parks. Further, the development criteria required to be followed by the developer will also be prescribed in the respective policies.
The state government comes up with various schemes from time to time for development of rural areas. The incentives depend on type of development and area proposed to be developed. Further, if development is concerning MHADA or CIDCO or for slum area, then the respective authorities and legislations provide for incentives therein including concessions relating to land. Furthermore, the central government vide Income tax Act and other applicable legislations have granted certain tax exemptions for development of industries and cineplex in the rural areas.
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References
1. Central Statistical organisation report
2. www.iic.nic.in
3. www.maharashtra.gov.in
4. www.maharashtra.gov.in
5. Dept. Of Industrial Policy & Promotion
6. Section 47 of MALCHA
7. Section 63 of BTALA
8. Section 63(1A) of BTALA
9. Section 12 of MLRC
10. Section 44 of MRTP
11. Regulation 3 of the DC Regulations lists down the areas of applicability
12. Regulation 2(3)(42) of the DC Regulations
13. Section 344 of the MMCA

REALESTATE POLICIES - DELHI

cONTENTS

· INTRODUCTION

· THE PRESENT REAL ESTATE SCENARIO

· THE LAND RULES

1. REGISTRATION ACT, 1908

2. The Delhi Land Reforms Act, 1954

3. THE DELHI DEVELOPMENT ACT 1957

4. The Delhi Rent Control Act, 1958

5. THE DELHI LAND HOLDINGS (CEILING) ACT, 1960

6. THE DELHI LANDS (RESTRICTIONS ON TRANSFER) ACT, 1972

7. THE DELHI URBAN ART COMMISSION ACT, 1973

8. The Delhi Apartment Ownership Act, 1986

9. THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS,2009

· INTRODUCTION

Delhi is also known as the National Capital Territory of Delhi (NCT), is the second-largest metropolis in India. With over 17.3 million residents, it is the sixth largest metropolis in the world by population.

It is the site of many ancient and medieval monuments, archaeological sites and remains. In 1639, Mughal emperor Shahjahan built a new walled city in Delhi which served as the capital of the Mughal Empire from 1649 to 1857. Some of the World renowned historical sites of Delhi include The Red Fort, Qutab Minar & India Gate.

New Delhi houses important offices of the federal government, including the Parliament of India, Rashtrapati Bhavan (Presidential House) & The Supreme Court of India.
The National Capital Territory of Delhi is spread over an area of 1,484 sq. km. Delhi has a maximum length of 51.9 km and the maximum width of 48.48 km.

It borders the Indian states of Uttar Pradesh on East and Haryana on West, North and South.
Extreme temperatures range from −0.6 °C (30.9 °F) to 48 °C (118 °F).[

Public transport in Delhi is provided by buses, auto rickshaws and a Metro rail system.

A diplomatic hub, home to the embassies of 160 countries, Delhi has a large expatriate population. Hindi is the principal spoken and written language of the city. Other languages commonly spoken in the city are English, Punjabi and Urdu. Of these, English is an associate official language, and Punjabi and Urdu second official languages.

· REAL ESTATE SCENARIO IN DELHI

Delhi Property in India has seen a steep and fast paced growth over the last few years. Delhi Real Estate and the surrounding satellite cities of Noida and Gurgaon, have become a major attraction for both builders and investors.

The capital city has an impressive infrastructure to boast of, with an International airport, arrival of Metro rail, plenty of five star hotels, and world class luxury standards of residential and commercial properties. Moreover, due to the advent of many multinational companies setting up their offices and commercial establishments in Delhi and the NCR it has become a lucrative deal to invest in Delhi Residential Property, Noida Property and Gurgaon Property.

Demand for properties in Delhi and the NCR has increased due to the easy availability of home loans in India. Investment in Delhi and in the NCR has become a major attraction for foreign investors, NRI’s and multinational companies. Thus the face of the real estate market in the city is changing too fast.

· REGISTRATION ACT, 1908

The main purpose for which the Act was designed was to ensure information about all deals concerning land so that correct land records could be maintained. The Act is used for proper recording of transactions relating to other immovable property also.

The Act provides for registration of other documents also, which can give these documents more authenticity. Registering authorities have been provided in all the districts for this purpose.

· The Delhi Land Reforms Act, 1954

(Act No.8 of 1954)

[20th July, 1954]

· Introduction

An Act to provide for modification of zamindari system so as to create an uniform body of present proprietors without intermediaries, for the unification of the Punjab and Agra systems of tenancy laws in force in the State of Delhi and to make provision for other matters connected therewith.

· Comments

As from the date of declaration of Bhumidhari rights the person in whose favour the Bhumidhar rights are granted becomes a new tenure holder enjoying all the rights conferred under the Act and subject to all the liabilities imposed by the Act.

The interest in land conferred upon a Bhumidari is not proprietory right which has been abolished but a new right declared under the Act. They are thus special rights created under the Act. Any incidence attached to the right before the commencement of the Act could not be added to the new rights conferred under the Act.

· THE DELHI DEVELOPMENT ACT 1957

[61 of 1957, dated 27.12.1957]

· Introduction

An Act to provide for the Development of Delhi according to plan and for matters ancillary thereto.

To be enacted by Parliament in the Eighth year of the Republic of India.

· Short title, extent and commencement

(1) As soon as may be after the commencement of this Act, the Central Government shall, by notification in the Official Gazette, constitute for the purposes of this Act an authority to be called the Delhi Development Authority (hereinafter referred to as the Authority).

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable and to contract and shall by the said name sue and be sued.

The main outcome was the commencement of a new civic body named the DELHI DEVELOPMENT AUTHORITY.

1. Objectives

• The objects of the Authority shall be to promote and secure the development of Delhi according to plan and for that purpose the Authority shall have the power to acquire, hold, manage and dispose of land and other property, to carry out building, engineering, mining and other operations, to execute works in connection with supply of water and electricity, disposal of sewage and other services and amenities and generally to do anything necessary or expedient for purposes of such development and for purposes incidental thereto.

· The Delhi Rent Control Act, 1958

(59 of 1958)

[31st December, 1958]

An Act to provide for the control of rents and evictions and of rates of hotels and lodging houses, and for the lease of vacant premises to Government, in certain areas in the Union territory of Delhi.

Be it enacted by Parliament in the Ninth Year of the Republic of India as follows:-

· Introduction

Most of the persons living in urban areas are somehow directly or indirectly affected by the law of rent control which is provincial in nature and it differs from State to State, The law which was applicable to Delhi was Delhi and Ajmer Rent Control Act, 1952 (38 of 1952). During the course of its applicability many difficulties were being faced and it was considered necessary to enact a comprehensive law for Delhi. In order to achieve this objective the Delhi Rent Control Bill was introduced in the Parliament.

· Act 59 of 1958

The Delhi Rent Control Bill having been passed by both the Houses of Parliament received the assent of the President on 31st December, 1958. It came into force on 9th February, 1959 as THE DELHI RENT CONTROL ACT, 1958 (59 of 1958).

· List of Amending Acts

1. The Repealing and Amending Act, 1960 (58 of 1960).

2. The Delhi Rent Control (Amendment) Act, 1963 (4 of 1963).

3. The Delhi Rent Control (Amendment) Act, 1976 (18 of 1976).

4. The Delhi Rent Control (Amendment) Act, 1984 (37 of 1984).

5. The Delhi Rent Control (Amendment) Act, 1988 (57 of 1988).

……The Delhi Rent Act, 1995

· THE DELHI LAND HOLDINGS (CEILING) ACT, 1960

· Introduction

• An Act to provide for the imposition of a ceiling on land holdings in the Union territory of Delhi and for matters connected therewith.
  
  To be enacted by Parliament in the Eleventh Year of the Republic of India.
  
  Short title extent and commencement.

(1) This Act may be called the Delhi Land Holdings (Ceiling) Act, 1960.

(2) It extends to the whole of the Union territory of Delhi, but shall not apply to-

· (a) the areas which, immediately before the 1st day of November, 1956, were included in a municipality or in a notified area under the provisions of the Punjab Municipal Act.1911 (Punjab Act 3 of 1911), or in a cantonment under the provisions of the Cantonments Act, 1924 (2 of 1924);

(b) the areas owned by the Central Government or any local authority; and

(c) the areas held and occupied for a public purpose or for a work of public utility and declared as such by the Chief Commissioner or the areas acquired under any enactment relating to the acquisition of land for a public purpose.

· THE DELHI LANDS (RESTRICTIONS ON TRANSFER) ACT, 1972

(ACT NO. 30 OF 1972)

[13th December, 1954]

· Introduction

An Act to impose certain restrictions on transfer on transfer of lands which have been acquired by the Central Government or in respect of which acquisition proceedings have been initiated by that Government, with a view to prevention large-scale transactions of purported transfers or, as the case may be, transfers of such lands to unwary public.

To be enacted by Parliament in the Twenty-third Year of the Republic of India as follows:

· Short title, extent and commencement –

(1)This Act may be called the Delhi Land (Restrictions on Transfer) Act, 1972.

(2)It extends to the whole of the Union territory of Delhi.

(3)It shall come into force at once.

Prohibition on transfer of lands acquired by Central Government

No person shall purport to transfer by sale, mortgage, gift, lease or otherwise any land or part thereof situated in the Union territory of Delhi which has been acquired by the Central Government under the Land Acquisition Act, 1984 or under any other law providing for acquisition of land for a public purpose.

· THE DELHI URBAN ART COMMISSION ACT, 1973

An Act to provide for the establishment of the Delhi Urban Art Commission with a view to preserving developing and maintaining the aesthetic quality of urban and environmental design within Delhi.

To be enacted by Parliament in the Twenty-fourth Year of the Republic of India

· The Delhi Apartment Ownership Act, 1986

(Act No. 58 of 1986)

• Introduction

The Delhi Apartment Ownership Bill, 1986 seeks to achieve the object of enabling the conferment of heritable and transferable right in an apartment including its proportionate and undivided interest in land and other common areas.

The scarcity of land in Delhi because of very rapid urbanization has led to a vertical growth of buildings. Multi-storied residential buildings, integrated development of commercial institutional and industrial areas and flatted factories have resulted in a marked increase in the number of multi-storied buildings in Delhi containing a number of apartments, sharing land and other common facilities. In the case of flats constructed by agencies like the Delhi Development Authority, while the super-structure is conveyed to the allotted, the land is conveyed to a registered agency and the flottees jointly which apart from separating the ownership of land and super-structures, interposes the registered agency in future transfers of properties.

The existing arrangements also involve the intervention of the Government and agencies like the Delhi Development Authority in the litigation or dispute regarding management of common areas which arise between the lessees and the buyers of the apartments. The legislation therefore proposes to meet the persistent demand for statutory recognition of an apartment as a unit of property, capable of transfer and for statutory recognition of an apartment as a unit of property, capable of transfer and for a statutory organisation clothed with adequate powers for management of common areas in multi-storeyed buildings.

· THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS

(SPECIAL PROVISIONS) BILL, 2009

REFERENCES :

www.indlaw.com

Proposals…

MCD To Hike Tax On Commercial Property

The Municipal Corporation of Delhi (MCD) is all set to increase tax on commercial property in the Capital. The MCD Standing Committee chairman, Ramkishan Singhal said that the corporation would review the tax policy for commercial property and bring a new proposal wherein the tax would be increased.

Class 4 | 4-8-2010 | Real Estate Policy

Project work assigned on collecting information on Indian policy related to real estate, eg SEZ, tax breaks for specific industries, etc.

Due date - 25-8-2010

Important - your bibliography is primate.