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Home Authors Posts by Anamika Gairola

Anamika Gairola

Anamika Gairola
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Anamika is a research-oriented writer with experience in writing blogs on home decor and real estate industry. Simply put, she knows the trend and expectations of today’s industry. She is an avid reader, wishes to travel the world, and loves to cook her favorite recipes when not writing.

Uttar Pradesh Deregisters 55 Real Estate Projects Due to Lack of Demand and Insufficient Funds

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has taken the decision to deregister 55 real estate projects across the state in the past three years. Officials from UPRERA have attributed this action to factors such as a lack of demand and inadequate financial resources.

According to UPRERA, there are currently two pending applications for the withdrawal of project registration. The largest number of deregistered projects were located in Lucknow, with a total of 12 surrendered projects. Following closely behind were Gautam Buddha Nagar and Varanasi, with eight projects each.

Additional districts affected by deregistration included Ghaziabad, Prayagraj, Agra, Meerut, Mathura, Muzaffarnagar, Chaundali, and Barabanki, each with three or two projects. Kanpur City, Gorakhpur, Bareilly, Moradabad, Unnao, and Amroha each had one project being deregistered.

An anonymous UPRERA official stated that the first application for withdrawal of project registration was received from Muzaffarnagar in July 2020, which was subsequently approved. Since then, a total of 55 projects have been deregistered across 17 districts of the state, with the most recent approval for withdrawal granted to Artha Infratech in March 2023.

The official further mentioned that two promoters have applied to surrender their projects in Ghaziabad and Lucknow. Mahagun (India), one of the promoters, has sought to surrender its Mahagun Mascot Phase-II project in the Crossings Republik township of Ghaziabad. The application is currently under scrutiny.

The reasons behind the withdrawal or surrender of project registrations are often attributed to factors such as lack of demand in the region, failure to meet anticipated sales targets, or financial constraints hindering project completion. UPRERA officials emphasized that promoters can surrender their projects only after settling all dues and claims from investors and homebuyers.

As per the Real Estate (Regulation and Development) Act, promoters are permitted to deregister or surrender projects if they are deemed unviable. The process involves a formal request from the promoter to surrender the project and the publication of a public notice, inviting investors and homebuyers who have booked apartments in the project to submit their claims for clearance.

It is crucial to ensure the protection of the interests of all stakeholders, especially homebuyers, throughout this process.

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Gurugram Emerges as a Fashion and Real Estate Powerhouse, Competing with Mumbai’s Status

Gurugram, known for its rapid development and thriving business environment, is on the brink of a transformative shift in the fashion industry. Renowned fashion designers are unveiling new stores in Gurugram, raising the intriguing question: Could Gurugram be the next fashion and real estate hub, following in the footsteps of Mumbai?

Fashion Industry Flourishing in Gurugram The fashion industry is an ever-evolving domain, constantly seeking new avenues for growth and innovation. While Mumbai has long held the title of India’s fashion capital, with its vibrant fashion weeks, designer stores, and renowned fashion houses, Gurugram is now challenging this status quo. As a dynamic economic center, Gurugram is reshaping the fashion industry landscape.

Real Estate’s Rising Star in Gurugram Gurugram’s transformation from a sleepy suburb to a bustling metropolis has been remarkable. Boasting a stunning skyline, state-of-the-art infrastructure, and a thriving corporate culture, Gurugram has become a magnet for real estate development. Its strategic location, proximity to Delhi, and excellent connectivity have further propelled its growth as a major real estate hub.

The Synergy Between Fashion and Real Estate Fashion and real estate have always shared a symbiotic relationship. The presence of high-end fashion brands and designer stores acts as a catalyst for real estate development. With new fashion destinations on the horizon, Gurugram’s real estate market is poised to experience a surge in demand for commercial spaces and luxury residences.

Gurugram’s Path to Prominence As Gurugram gains prominence in the fashion industry, it is not far-fetched to envision the city rivalling Mumbai’s status as India’s fashion capital. Gurugram’s cosmopolitan atmosphere, rising disposable income, and discerning customer base create an ideal breeding ground for fashion entrepreneurs and designers. The decision of leading fashion designers to establish new stores in Gurugram is a testament to the city’s emergence as a powerhouse in both the fashion and real estate domains. With its rapid urbanization, strategic location, and fashion-forward population, Gurugram is poised to become a formidable competitor to Mumbai’s fashion throne.

All Eyes on Gurugram’s Journey As the city embraces this new chapter, all eyes are on Gurugram to witness its remarkable journey towards becoming the next fashion and real estate hub of India. The convergence of these two industries holds immense potential for Gurugram’s future, redefining its identity and establishing it as a force to be reckoned with in the fashion and real estate sectors.

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Real Estate Sector Urged to Establish Credible Framework for Financing from Banking System

The Ministry of Housing and Urban Affairs (MoHUA) has emphasized the importance of the real estate sector accessing finance from the banking system instead of relying solely on homebuyers’ advances for construction purposes.

During the CII Annual Conclave on Indian Real Estate 2023, Manoj Joshi, Secretary of MoHUA, stressed the need for the real estate sector to collaborate with regulators and banking institutions to establish a credible framework that differentiates between good and bad projects, allowing access to capital from banks.

Joshi highlighted the absence of a system that segregates reliable borrowers from unreliable ones, resulting in all players being treated as untrustworthy by the banking sector. He emphasized the sector’s responsibility to develop mechanisms, such as rating systems and performance evaluations, to enable this differentiation. Without a credible framework supported by regulators, financing real estate projects will remain challenging.

Joshi further stated that the current model, where homebuyers provide the entire finance, needs to change for a truly professional market to emerge. He pointed out that the real estate sector must enable regulators, through improved rating systems and appraisal processes, to differentiate between reliable and unreliable projects. Failure to do so results in all developers being perceived as risky, affecting the sector’s access to finance.

The article also shed light on the challenges faced by contractors and vendors in the real estate sector, who often struggle to obtain credit from banks. These stakeholders heavily rely on advance payments from government clients, while developers primarily rely on funds from homebuyers. This financial dynamic leads to working capital constraints, causing delays, increased costs, and inefficiencies.

Joshi emphasized that inadequate cash flow in the hands of contractors and vendors results in project delays and cost inefficiencies, extending the construction timeline. He raised concerns about the detrimental impact of not providing finance to such a vital segment of the economy, highlighting the need for a more nuanced approach to financing in the real estate sector.

Joshi also discussed the role of the banking system and the challenges it faces in assessing borrowers due to the public sector-dominated structure. He highlighted the importance of sharp appraisals and the ability to differentiate between good and bad borrowers to prevent the entire real estate sector from being perceived as high-risk. Joshi expressed the government’s intent to create formal structures that directly provide funds to vendors to address the cash flow issue.

Additionally, the article touched on the significance of urban planning in Tier-2 and Tier-3 cities, emphasizing that it remains a priority area for the government. The need for reforms and incentives to promote urban planning in these cities was highlighted, with a focus on providing affordable, low-cost housing units to meet the growing demand.

The real estate industry experts attending the conclave expressed optimism about the sector’s growth, acknowledging the positive impact of reforms such as RERA, GST, REIT frameworks, and the digitization of land records. They also emphasized the role of infrastructure development, including high-speed rail networks and metro systems, in fueling the growth of emerging cities.

The Ministry of Housing and Urban Affairs emphasized the importance of establishing a credible framework for accessing finance from the banking system in the real estate sector. Collaboration between regulators, developers, and banking institutions is crucial to enabling sustainable growth and addressing the challenges faced by the industry.

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India’s Government Amends Green Energy Open Access Rules, Promoting Renewable Energy and Reducing Surcharge

The Union government of India has introduced the second amendment to the green energy open access rules, renaming it as the Electricity (Promoting Renewable Energy Through Green Energy Open Access) (Second Amendment) Rules, 2023. This follows the initial amendment notified on January 27 of this year.

The latest amendment allows any consumer to access green energy through open access while reducing the Open Access Transaction limit from 1 MW to 100 kW for green energy. This adjustment enables small consumers to procure renewable power through open access.

According to the new amendment, only consumers with a contracted demand or sanctioned load of 100 kW or more, either through a single connection or multiple connections within the same electricity division of a distribution licensee, are eligible for green energy open access. Captive consumers under green energy open access face no limit on the power supply. The amendment also extends the surcharge waiver for electricity generated from offshore wind projects by seven years, now applicable until 2032 for projects commissioned by that date.

This amendment marks a departure from the previous January amendment, which provided surcharge waivers exclusively to offshore wind projects commissioned up to 2025. Currently, India does not have any operational offshore wind projects, but the government is expected to launch the first tender for offshore wind soon.

The revised green energy open access rules play a significant role in India’s transition towards green energy and reducing emissions by 45% in line with the updated NDC target for 2030. The amendment is also anticipated to considerably lower power costs. Union Minister for Power and Renewable Energy, RK Singh, urged industry stakeholders to capitalize on the new rules, working towards a greener planet for future generations during a meeting held on May 13.

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Appellate Authority Affirms GST Treatment of Car Park Sale in Residential Projects

The West Bengal bench of the Appellate Authority of Advance Rulings (AAAR) has upheld a previous ruling, stating that the sale or right to use a car park is not naturally bundled with construction services. As a result, it will not be considered a composite supply and will be subject to the higher goods and services tax (GST) rate of 18%.

This ruling came in response to an appeal by Eden Real Estates, a company involved in the construction of residential apartments.

Since April 1, 2019, GST has been levied at 5% on non-affordable housing projects without input tax credit (ITC). For ongoing projects, builders have the option to pay GST at the old rate of 12% with ITC, allowing them to set off the taxes paid on inputs. If the AAAR had treated the transaction related to the car park as a composite supply, the applicable GST levy would have been that of the primary supply of construction, which is lower.

Anita Rastogi, Principal (Indirect Taxation) at Price Waterhouse-India, explained that this ruling will result in higher costs for purchasing homes with parking spaces.

“While advance rulings are only binding on the parties involved in the specific transaction, tax authorities often rely on rulings favorable to the department. If a taxpayer, such as a builder, takes a different approach, it can lead to litigation. Therefore, some builders may adopt a cautious approach and charge 18% GST for the car parking space,” Rastogi said.

In this particular case, the real estate developer argued that the car parking space is provided exclusively to flat buyers, and stamp duty is paid on the total consideration charged to them, which includes the price of the apartment and the car parking space.

However, the AAAR bench noted that prospective flat buyers may or may not choose to opt for a car parking space when booking their flat. Consequently, the argument that the right to use the open parking space is naturally bundled with construction services and constitutes a composite supply was deemed invalid.

Furthermore, the “right to use” the open car parking space implies that the ownership of the open space is not transferred to the flat buyer, making it a separate service altogether.

The arguments primarily revolved around open car parking spaces, and the bench also highlighted that under the Real Estate (Regulation and Development) Act (RERA), an open parking space is not included in the definition of a garage.

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Maximizing HRA Exemption: Navigating Common Scenarios and Tax Benefits

The Home Rent Allowance (HRA) deduction can be used by salaried people who rent an apartment to completely or substantially offset their tax obligations. The top three situations that people encounter while requesting an HRA exemption are listed below.

The HRA, or Home Rent Allowance, is a crucial component of an employee’s compensation package. HRA isn’t entirely taxable, unlike your base pay. A portion of it is excluded under Section 10 (13 A) of the Income Tax Act of 1961, subject to certain conditions. You must give your employer the rent receipts in order to qualify for the HRA exemption. If the rent you pay is greater than Rs. 1 lakh per year, or Rs. 8,333 per month, you must mention the owner’s PAN number.

While some people could find it simple to take full use of the HRA exemption, others would find it more difficult, particularly those who have moved throughout the year. One such dilemma that perplexes many of us is whether to ask for the landlord’s PAN or not.

Here are three common situations and how to handle each of them when obtaining an HRA tax exemption.

Case I 

When the annual rent is less than Rs. 1 lakh but the monthly rent exceeds Rs. 8,333

If you recently moved from privately held housing to rented space, this confusion is more likely to happen. Imagine that you are visiting your family in a city. But, you were required to leave the residence in the middle of the fiscal year and move into rental housing with a monthly rent of more than Rs 8,333. In this situation, you are eligible for HRA without providing the landlord’s PAN number. The Central Board of Direct Tax (CBDT) stipulates that quoting a PAN is only required when the annual rent exceeds Rs 1 lakh.

Case II 

When you and a friend/s share rental space

It is advisable to obtain a copy of the lease agreement, which clearly lists the names of all lessees and the amount of rent paid by each, if you are renting an apartment with a friend. As an alternative, you might present the landlord with a statement outlining your monthly rental contribution. You want to bring a duplicate of the rent receipts with you just to be cautious. Also, it is wise to use either a cheque or net banking to pay the rent in these circumstances. This demonstrates that you have been paying rent each month.

Every salaried employee is allowed to claim HRA exemption under Section 10 (13 A) of the Income Tax Act, provided that his or her name is specified in the rental agreement, according to CA Rishabh Pallav, Partner, Sushil Kumar Sharma and Company. The minimum amount that can be deducted is equal to the sum of the actual rent paid less 10% of the basic salary, or 40% of the basic salary in a non-metro city, or the actual HRA received.

Case III

When you relocated two or three times in a single fiscal year

In this situation, the employee must obtain monthly rent receipts rather than accumulating them all at once at the conclusion of the fiscal year. If the total of all of your monthly payments is less than Rs. 1 lakh, you are exempt from obtaining the owner’s PAN. As an illustration, if you paid Rs 8,000 in rent per month for six months, moved, and then paid Rs 7,000 per month for another six months, your total yearly payment would be Rs 90,000 (48,000 + 42,000). You should not include the PAN number of the payer because the annual payment is less than Rs.

Claiming HRA and house loan benefits together

Legal provisions allow one to employ more than two homes, even if not all of them are his own, and to be eligible for HRA and home loan advantages. For instance, you are still eligible for the HRA even if you rent in Delhi because of your job and own a home in Bangalore. There are no clauses in Section 80C 24(b) or Section 10(13A), which deal with the tax benefits related to HRAs and home loans, that prevent you from claiming an exemption for either a home loan or an HRA, or both. According to the adjustments suggested in the Finance Bill 2019, you can utilize both.

Employees can save a lot of money on taxes by using the HRA deduction. Notwithstanding the situation, you must provide your employer proof of your rent payment in order to request HRA. Hence, if necessary, you can also get a written rent receipt from your landlord.

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Bollywood Actress Neetu Kapoor Invests Rs 17.40 Crore in Exquisite Bandra Kurla Complex Apartment

Renowned Bollywood actress Neetu Kapoor has recently made a significant investment by purchasing a luxurious apartment in a residential project located in Bandra Kurla Complex, Bandra, Mumbai. According to exclusive documents obtained by IndexTap.com, the actress acquired the property for a staggering sum of Rs 17.40 crore.

The apartment, situated within the prestigious Signia Isle by Sunteck Group, offers a spacious built-up area spanning 3387 square feet. This lavish dwelling promises an opulent living experience in one of Mumbai’s most sought-after locations.

To complete the property transaction, Neetu Kapoor has diligently fulfilled the stamp duty requirement, amounting to Rs 1.04 crore. The registration of the property was successfully finalized on May 10, 2023, marking a significant milestone in the actress’s real estate portfolio.

Inquiries have been made by contacting the Sunteck Group via email, and a message has been sent to Neetu Kapoor for further details regarding her prestigious acquisition.

This comes after Bollywood actress Alia Bhatt’s production house, Eternal Sunshine Production Pvt Ltd, recently made headlines for purchasing an apartment in Bandra West, Mumbai, worth a whopping Rs 37.80 crore. The property, located in the Aerial View Cooperative Housing Society Limited in Pali Hill, Bandra (West), spans an area of 2,497 square feet and was acquired from Gold Street Mercantile Company Pvt Ltd, as per the disclosed documents.

In an additional transaction on the same day, Alia Bhatt exhibited her generosity by gifting two apartments in Mumbai, with a market value of Rs 7.68 crore, to her sister Shaheen Mahesh Bhatt.

Notably, filmmaker Sajid Nadiadwala, through his production company Nadiadwala Grandsons, has also made a notable purchase. He recently acquired a sizable plot spanning 7,470 square feet in Juhu for a sum of Rs 31.3 crore, signaling his continued investment in Mumbai’s real estate market.

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Indore Development Authority Sets Ambitious Target to Multiply Revenue 12 Times in Revised Budget

INDORE: The Indore Development Authority (IDA) has unveiled its strategic plan to boost revenue generation, aiming to generate around Rs 6,000 crore in the upcoming fiscal year. This projection represents a significant increase, approximately 12 times higher than the revenue generated in the previous financial year, as outlined in the revised budget.

In its budget for 2023-24, IDA has categorized its income sources into six main areas, which include the sale of plots, sale of buildings, lease rent/freehold fee, rent, interest on bank deposits, grants, and other sources.

According to RP Ahirwar, the CEO of IDA, the authority anticipates earning approximately Rs 5,300 crore from the sale of plots located on the Super Corridor, as well as in scheme-140, 78, 94 phase-IV, 166, 155, 169, and 151.

In addition, IDA possesses approximately 1,800 ready-to-sell flats across Indore, which are expected to generate around Rs 411 crore in income upon sale.

Ahirwar stated that IDA currently has around 16,000 properties on lease, eligible for freehold conversion. In the previous financial year, approximately 1,700 leased properties were successfully converted to freehold by charging a fee. In the ongoing financial year, IDA aims to convert around 10,000 properties to freehold, generating approximately Rs 100 crore in revenue through rent and lease payments.

Furthermore, IDA holds bank deposits and fixed deposits totaling around Rs 500 crore, which are expected to generate an income of approximately Rs 40 crore during the current financial year. Additionally, the central government has allocated a grant of approximately Rs 45 crore for IDA’s proposed transport hub in an 8.5-hectare land area in TPS-3.

Ahirwar emphasized that this grant marks a significant milestone for IDA. He further expressed that their goal is not solely focused on revenue generation. The current budget encompasses various aspects, including road infrastructure, education, environmental initiatives, public facilities, and overall development. IDA aims to contribute comprehensively to the overall progress of Indore in the upcoming financial year.

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IITGNL to Introduce New Group Housing and Commercial Use Schemes Soon

The Indian Institute of Technology Gandhinagar’s (IITGNL) real estate division has announced plans to introduce new group housing and commercial use schemes in the near future. The move is aimed at providing affordable and high-quality housing and commercial space options to residents and businesses in the area.

The group housing scheme is expected to cater to the growing demand for affordable housing in the region. The scheme will feature a mix of 1BHK, 2BHK, and 3BHK apartments, with a total of 1000 units to be developed in the first phase.

In addition to the group housing scheme, the IITGNL real estate division is also planning to introduce a commercial use scheme that will provide office and commercial space to businesses in the area. The scheme is expected to feature state-of-the-art facilities and amenities, including high-speed internet connectivity, power backup, and 24/7 security.

The IITGNL real estate division has a track record of developing high-quality real estate projects that meet the needs of residents and businesses in the region. The division has previously developed residential and commercial projects, including the IITGNL Faculty Housing Project and the IITGNL Staff Housing Project.

Overall, the introduction of the new group housing and commercial use schemes by the IITGNL real estate division is expected to provide a boost to the local real estate market, while also meeting the growing demand for affordable and high-quality housing and commercial space options.

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Brookfield Asset Management and Bharti Enterprises Close Rs 5,000 Crore Deal for Delhi-NCR Commercial Properties

Brookfield Asset Management and Bharti Enterprises have recently completed a Rs 5,000 crore deal, marking a significant development in the Indian real estate sector. Under the agreement, Brookfield acquired a 100% stake in Bharti Realty’s commercial properties located in Delhi-NCR, making it one of the largest commercial real estate deals in India.

The deal includes four properties, comprising three commercial buildings and a land parcel, with a total area of approximately 4 million square feet. The properties are strategically located in prime areas of Delhi-NCR, including Gurgaon and Aerocity, and are currently leased to blue-chip clients such as National Payment Corporation of India, Nokia, and HCL Technologies.

Bharti Enterprises will continue to hold the land parcel adjacent to one of the commercial buildings, which it plans to develop into a mixed-use project. As part of the deal, Brookfield and Bharti Enterprises have also entered into a strategic partnership to jointly pursue new investment opportunities in the Indian real estate market.

This transaction is a testament to the growing demand for commercial real estate in India and highlights the confidence of global investors in the country’s real estate sector. It also reflects the continued growth of the Indian economy, which is expected to drive further investment in the country’s real estate sector. The deal is expected to further strengthen Brookfield’s position as one of the largest investors in the Indian real estate market.

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