HC allows property sale on power of attorney

NEW DELHI: Spelling relief for thousands of property owners in the city, the Delhi high court has struck down a controversial circular of the state government that restricted property transaction via general power of attorney.

Justice Rajiv Shakdher faulted the state government for wrong interpretation of a landmark 2011 Supreme Court on the issue of power of attorney (GPA), pointing out the apex court never issued a blanket ban on registration by taking recourse to a GPA. The circular had created massive confusion among property owners who had to regularize their property through a fresh sale deed and pay stamp duty.

"The Supreme Court has not said that in no case a conveyance can be registered by taking recourse to a GPA. As long as the transaction is genuine, the same will have to be registered by the Sub-Registrar. There is distinctly a specific reference to the fact that, a person may enter into a development agreement with a land developer or builder for development of a parcel of land or for construction of apartments in a building, and for this purpose a power of attorney to execute sale agreements, can be executed," the court observed.

In October 2011, the SC had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Last year, the state government came out with a circular banning sale of property on the basis of a GPA, a will, and agreement to sell, collectively or separately in respect of an immovable property. "No transfer of property will take place until a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ Sub-Registrar," the circular stated, with the government claiming it issued it in "strict adherence to SC ruling" on property transactions.

The government had clarified that property transactions involving GPA, done after the SC order of October 2011 would not be null and void and property holders can "regularize" them by paying the difference in the stamp duty.

HC's order came on the petition of a builder who had entered into a property transaction in south Delhi by way of a GPA. The builder highlighted how the government's circular failed to make a distinction between registration of a genuine GPA and those done to evade stamp duty. Source: Abhinav Garg, TNN

Transforming Beyond 'Factory Asia' Key to Keeping Economies Strong

NEW DELHI, INDIA – Developing Asia must invest in skills, technologies, and the private sector to move beyond low-cost manufacturing and ensure economic growth remains strong, delegates at the Governors’ Seminar at the 46th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB) heard today.

“’Factory Asia’ itself is clearly evolving,” ADB President Takehiko Nakao said. “Huge investments must be made in education and skills training that are appropriate for the needs of the future. For any of this evolution to proceed, the right infrastructure must be in place.”

Exporting manufactured goods has transformed many Asian economies over the past few decades, helping lift millions out of poverty. However, that growth model needs to evolve given changing global patterns of growth, demographics, and technology, according to Beyond Factory Asia: Fuelling Growth in a Changing World, which was presented at the Governors’ Seminar, the flagship seminar of the Annual Meeting.

Slow growth in the US, Europe, and Japan together with a growing Asian middle class means demand is shifting away from developed markets to emerging economies. Expanding markets in other regions of the world may also present a new opportunity for Asia.

Meanwhile, production in Asia is becoming more expensive as wages and commodity prices tick up and as the labor pool shrinks, eroding Asia’s cost advantage. Complex supply chains and volatile foreign exchange rates make management of manufacturing across multiple countries difficult and increasingly risky.

While low-cost manufacturing will remain a key part of Asia’s economies going forward, its contribution will decline and governments need to be ready now to help their economies continue to transform.  The region needs to boost domestic demand and help firms target other emerging markets in Asia and beyond. Greater regional cooperation will open up trade across borders and keep protectionism in check.

Support will be needed to help the private sector move up the value chain and to develop the financial markets needed for companies to raise funds and manage risks. Meanwhile, countries need to help their people learn the skills that companies need to produce more sophisticated goods and to invest in the research that will encourage development and adoption of new technologies.

Other panelists at the seminar included Japanese Finance Minister Taro Aso; Anne Sipilainen, ADB Governor for Finland; Armida Alisjahbana, the Indonesian State Minister for National Development Planning; Raghuram Rajan, the chief economic advisor to the Government of India; and Harvard Business School Professor Tarun Khanna.

Govt aims to provide houses for all homeless

Mr. Ajay Maken, Minister of Housing and Urban Poverty Alleviation, says it is the responsibility of state governments to ensure homes for all citizens

As per Census 2001, total houseless households in the country stood at 0.45 million.  Census of India 2011 data on houseless households has not been released as on date, therefore, estimation of houseless households as of now and its comparison with the number in 2001 cannot be made at this juncture. However ‘Technical Group on Urban Housing Shortage’ has indicated that 0.53 million Households are in homeless condition in urban areas as of 2012.  This information was given by Mr. Ajay Maken, Union Minister of Housing & Urban Poverty Alleviation (HUPA), in the Rajya Sabha today.

The Minister further stated that Land and Colonisation are State subjects, therefore it is the primary responsibility of State Governments to provide houses/shelters to all citizens. Government of India did not have any scheme for construction of shelters for homeless persons during the Eleventh Five Year Plan. However, in order to complement and supplement the initiatives of State Governments in providing housing for the urban poor, Ministry of Housing & Urban Poverty Alleviation has been implementing following schemes/programmes:

Under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with its two components Basic Services to Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP), 1.57 million Dwelling Units have been sanctioned as on date.

The scheme of Rajiv Awas Yojana (RAY) is at a preparatory phase where Slum Free City Planning is being undertaken.

Under Affordable Housing in Partnership Scheme (AHP), 11 projects of 2 States viz., Karnataka & Rajasthan have been sanctioned.

The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) is meant to facilitate channelization of credit for the urban poor. As on date, 13,485 beneficiaries have been covered under ISHUP.

Under National Urban Livelihood Mission (NULM), ‘Shelters for Urban Homeless’ has been proposed to be taken up during Twelfth Five Year Plan. However, since necessary approvals have not been obtained, no time frame for its finalization can be committed at this juncture.

The Minister further stated that given the magnitude of the housing shortage and budgetary constraints of both the Central and State Governments, it is clear that Public Sector efforts will not alone suffice in fulfilling the housing demand. The exact time span to ensure a house to every family in the country cannot be estimated, the Minister added.
Source: By iGovernment Bureau

Housing prices up in 9 cities, down in 11 places: NHB

Showing a mixed trend, housing prices in 11 cities, including Bangalore and Kolkata, declined by up to 5 per cent in July-September, while rates in nine other places increased by up to 10 per cent, according to National Housing Bank (NHB).

Kochi saw the highest price rise of 10.1 per cent, followed by Jaipur with 9 per cent during the second quarter of this fiscal compared with the previous quarter.

In Delhi-NCR, Mumbai and Chennai, prices rose by 3.8 per cent, 0.5 per cent and 1 per cent, respectively, NHB data showed.

NHB RESIDEX tracks the movement in prices of residential properties on a quarterly basis. It covers 20 cities. From January next year, it plans to cover 6 more cities.

"Overall, there is a price correction. Even in nine cities where prices have gone up, there will be net decline if we factor in the rise in input cost and inflation," NHB Chairman and Managing Director R V Verma said.

Asked about falling prices, he said, "Builders cannot sustain at current prices because of oversupply. So, they are decreasing the price to clear inventory and boost sales."

Housing demand has been affected for last few years due to high interest rates on home loans. "The movement in prices of residential properties has shown marginally declining trend in eleven cities, ranging from -0.4 per cent in Faridabad to -4.8 per cent in Surat, and rise in nine cities ranging from 0.5 per cent in Mumbai to 10.1 per cent in Kochi during July-September, 2012 in comparison to the previous quarter April-June 2012," NHB said.

Ahmedabad saw 3 per cent rise, Bhubaneshwar 2.3 per cent, Lucknow 2.2 per cent, Chennai 0.8 per cent, Pune 0.7 per cent.

Prices fell the maximum in Surat (-4.8 per cent), followed by Indore at -3.54 per cent, Kolkata -2.4 per cent, Vijayawada -2.4 per cent, Patna -1.8 per cent, Ludhiana -1.7 per cent, Bangalore -1.7 per cent, Hyderabad -1.3 per cent, Guwahati -0.7 per cent, Bhopal -0.5 per cent and Faridabad -0.4 per cent.

On the overall trend, NHB said that prices have started to decline in some smaller towns and the increase in other cities is mostly marginal, barring Kochi and Jaipur.

"There is some signs of convergence of prices around this level across the 20 cities," it added.

PTI

West Bengal to amend Urban Land Ceiling Act

The West Bengal government is contemplating making critical amendments to the Urban Land Ceiling Act which will provide new incentives to developers

By Chandrabindu; igovernment

Kolkata, Nov 7th: With a view towards promoting commercial activities in upcoming residential colonies, the West Bengal government is contemplating making critical amendments to the Urban Land Ceiling Act. The proposed amendments will aim to provide incentives to developers who agree to integrate housing projects with commercial activities.

Confirming the plan, Mr. Debashis Sen, Chairman and Managing Director of West Bengal Housing and Infrastructure Development Corporation, said “We are looking at framing a policy by which we can facilitate housing-cum-commercial projects.” Mr. Sen added that that the revised Act could be announced by the end of this fiscal year.

Other officials also added that the amendments will not only encourage commercial activities in metropolitan townships, but also allow the state to earn revenue in terms of duties and other taxes. As per the proposed policy, which is in draft stage, developers could be offered some relaxation in stamp fees as well as allowed the ability to purchase land that was prohibited under the existing ceiling act.

“However, construction companies will be required to dedicate 51 percent of their land for commercial activities, under this act and nearly one-fourth of the houses to be developed on the remaining 49 percent of land will be allocated to economically weaker sections under the proposed amendments,” Mr. Sen added.

Under the existing West Bengal Land Ceiling Act, private ownership of agricultural land in the State is restricted to 17.5 acres for irrigated land and 24.5 acres for areas that are rainfed. In urban areas, private ownership is capped at only 0.125 acres.

Officials of the Urban Development Department said that the proposed policy would also seek to allow conversion of agricultural land for housing purpose. “Through this proposed policy we will try to provide some relaxation in the conversion process as well as easing the approval of building plans,” they maintained.