Posts Tagged ‘Kerala Government’

Mixed response to building rule modifications

July 22nd, 2010

The decision of the State government to modify some of the amendments made to the Kerala Municipal Building Rules, 1999, a few months ago has brought some relief to property developers in Kozhikode.

A few restrictions on constructions of buildings close to roads have been relaxed indicating that builders will revive some of their stalled projects as well as launch new ones in the city. The revisions have been in the access width for high-rise buildings, which normally is more than 15 metres from the ground (or over four floors).

The required access width of roads to multi-storey buildings, both residential and commercial, in the past was only five metres. But it was amended based on number of the units — a building with 25 flats should have a minimum access width of seven metres; 50 flats, nine metres; 75 flats, 12 metres; and 100 units or more, 15 metres.

Now the access width has been reduced on all categories and the total space of the buildings, whether small, medium or industrial, will also be considered.

The parking areas have also been reduced considerably by 15-30 per cent. “The revised rules are quite reasonable enabling the builders to go ahead with projects,” says M.A Mehaboob, secretary, Confederation of Real Estate Developers Associations of India (CREDAI), Kozhikode chapter.

A parking lot for two flats each below 100 sq.m and one for each unit above 100 sq.m is acceptable. Earlier, the rule insisted on having two parking lots, one for guest parking, for any single unit in an apartment.

Another is concerning the digging of ground for construction of basements. The amended rule maintained that a builder should obtain a no-objection certificate (NOC) from the neighbour if the depth is 1.5 metres or more or the measurement exceeds the length from the boundary wall.

Mr. Mehaboob says the rule of getting an NOC for digging purpose has been dropped and instead a committee constituted by the Corporation or civic body will look into complaints, if any.

However, a new provision has been brought in regarding the construction of a dedicated road inside the premises of high-rise apartments for fire tenders. The rule, applicable for commercial and housing buildings, has to be enforced even if a public road exists. Besides at least five metres should be left vacant on all sides of the high-rise buildings.

FAR

The Floor Area Ratio (FAR) has been left unchanged (If the floor area of a house is 2,000 sq.ft and land area is 3,000 sq.ft, FAR is 0.66).

The new rule says that builders can increase the FAR only up to 2.75, after remitting an additional fee. It will be Rs.500 per square metre for FAR between 1.5 and 2, and Rs.1,000 per square metre for between 2 and 2.75. Earlier, FAR for residential buildings was 3, giving property developers a wide option in planning buildings.

The coverage of high-rise apartments has also been considerably reduced.

Only 60 per cent of the land available should be covered by buildings having six to 50 units. Only 55 per cent of the land can be used for building having units between 51 and 100; 50 per cent for buildings having 101 and 200 units. The construction should be restricted to 45 per cent for apartments having 200 units and above.

Builders say that overall the new rules will support the construction industry but only to a limited extent as the amended FAR has been left untouched.

Several new projects in the city and the suburbs have been put on hold following the new rules. “The concept of affordable housing will only remain on paper if the government does not further revise the FAR rules, ” Mr. Mehaboob says.

Already builders are thinking of increasing the rates by Rs.250-500 per square foot from the existing rates. The new rule will increase expenditure for builders.

Even so builders can rejoice as the government has reduced the stamp duty. The effective rate of stamp duty, surcharge and registration fee in Corporation areas is now 11 per cent; in municipality, township and cantonment areas to 10 per cent; and in grama panchayat areas to 9 per cent.

A further reduction in stamp duty has been provided for environment-friendly housing projects.
News Published Under:  The Hindu

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Stamp duty cut wins wide applause

March 16th, 2010

Property developers in Kozhikode city are happy about the proposals in the State Budget presented by Finance Minister T.M. Thomas Isaac in the Assembly last week.

One of the major proposals is to reduce the stamp duty and abolish the surcharge on stamp duty. “It is generally felt that stamp duty prevailing in Kerala is on the higher side,” Dr. Isaac said in his speech.

Repeatedly, builders have been demanding a cut in the stamp duty, which was the highest in the country. Now the proposal is to bring the effective rate of stamp duty, surcharge and registration fee in Corporation areas to 11 per cent; in municipality, township and cantonment areas to 10 per cent; and in grama panchayat areas to 9 per cent.

The existing stamp duty in Corporation areas is 13.5 per cent; municipalities, 12.5 per cent; and in the grama panchayat limits, 10 per cent. This apart, a 2 per cent charge is levied for registration.

Builders are also elated over the prospect of bringing down the stamp duty charge on flats and apartments to five per cent. “Surely, this is a radical proposal that will benefit the end-user. Moreover the budgetary proposal will give an impetus to the construction industry,” says Nityanand Kamath, Chairman, Confederation of Real Estate Developers Associations of India (CREDAI), Kozhikode chapter.

Clients who booked apartments and flats in Kozhikode have not registered the units because of the high stamp duty rates prevailing in the State. Many had kept in abeyance the registration even after occupying the flats. The proposal will make them register their property and bring revenue to the State exchequer, he says.

Reduction in stamp duty has been provided for environment-friendly housing projects. Apartment complexes having facilities for harvesting rainwater, energy- saving electrical appliances and solar panels for lighting and water heating will need to pay four per cent stamp duty. A chartered engineer should certify such projects. This concessional rate shall apply only if the transfer takes place within six months from the date of allotment of house number by the civic bodies.

Dr. Isaac said, “I feel that the construction industry, which is being badly affected by recession, needs a helping hand from the government.”

However, realty experts feel that the stamp duty needs to be reduced further in the range of 7-8 per cent to make the rates uniform with other States. Eventually, future governments will be compelled to buy this argument in the wake of the implementation of the fair value of land in the State, Mr. Kamath says.

The budget has already made a proposal that the fair value of land fixed on the basis of 15 categories will come into effect on April 1, 2010. “It was insisted that the fair value of land should not exceed 50 per cent of the market value. There may be some practical difficulties in implementing fair value. In order to resolve such difficulties, District Collectors will examine and redress such anomalies relating to valuation,” Dr. Isaac said.
News Published Under:  The Hindu

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What one-time settlement scheme holds for buyers

October 29th, 2009

Under-valuation of land has been rampant in State. Those who have done this can make use of the one-time settlement scheme. 
The exchequer has been losing vast sums for many years as amounts much lower than the money that changes hands are shown on record during property deals. Land buyers do this to make gains from a corresponding low outgo in stamp duty.

Registration Department officials say that apart from denying the State its rightful share of revenue, the illegal practice has been helping the sellers, who include even the land mafia, get away with low income taxes.

A one-time settlement scheme has been on since June in the State for those who have undervalued their property. Considering the response, the department has decided to extend the scheme till March 1, 2010 from the September 30 deadline.

The land buyer who opts for the scheme is exempted from legal proceedings in future. The exemption is applicable to land registrations till March 31, 2009. One has to pay a penalty of Rs.2,000 for up to five cents (1 cent = 40.5 sq m) of land in the Corporation limits, Rs.1,000 in municipalities and nothing in grama panchayat areas. For five-10 cents of land in the Corporation limits, the amount fixed is Rs.5,000; in municipalities, Rs.3,000 and in grama panchayat areas, Rs.1,000.

The fine for 10 cents to 50 cents in the Corporation limits is Rs.10,000, in municipalities, Rs.5,000 and grama panchayats, Rs.2,000. The defaulters have to pay a fine of Rs.12,000 or 6 per cent of the earlier stamp duty, whichever is higher, for lands above 50 cents in the Corporation limits; 4 per cent or Rs.7,000 in municipal limits and 2 per cent or Rs.3,000 in grama panchayat areas. The department has mobilised nearly Rs.18 crore from the scheme in the State. Kozhikode district’s share is Rs.1.8 crore, officials say. Sajan Kumar, Deputy Inspector-General of Registrations, says under-valuation of land rates has been prevalent throughout the State. The stamp duty in Corporation areas is 13.5 per cent; municipalities, 12.5 per cent; and in the grama panchayat limits, 10 per cent. Apart from this, a 2 per cent charge is levied for registration, says K.P. Suresh Kumar, District Registrar, Kozhikode.

Approximately 1.86-lakh under-valuation cases have been detected in the 33 sub-registrars’ offices in the district since 1986. The State has nearly 20 lakh cases.

The department has served notices on 25,000 people till now under Section 45(B) of the Kerala Stamp Act. There was a shortage of stamp paper for a month; so, the department is yet to despatch notices to the remaining defaulters. People can voluntarily submit the penalty even if they have not received any notice so as to avoid any liability in future, Mr. Sajan Kumar says.

He says that the sub-registrars determine the value of land in an area based on the guidelines fixed by the State government. They can report cases of undervaluation also on the basis of the market rates or a transaction registered at the actual value in a particular area. Normally, land transactions are done far below the actual market rates.

The sub-registrars’ offices will look at the highest transaction that took place in an area when dealers undervalue land. At present, the government tries to extract at least 30 per cent of the actual stamp duty, although in most cases it gets only 15 per cent. Builders of flats generally remit 50 per cent.

News Published Under:  The Hindu

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Towards houses for all

October 23rd, 2009

Recognition of housing as a basic right of every family is the theme of a memorandum being submitted by the Kerala State Housing Board Employees’ Association to the Union government through the Indian National Trade Union Congress (INTUC).

Why cannot the government come forward to amend the Constitution to protect the right of the citizens to have a decent shelter was the fundamental question raised in the paper, submitted at the 29th plenary session of the INTUC in the city early this week.

With the government having introduced steps such as the National Rural Employment Guarantee Programme, the National Health Insurance Scheme and compulsory primary education for all children, it is expected that the issue of housing will be addressed with the seriousness it deserves, said the paper, submitted at the session by Vithura Sasi, working president of the association.

The government cannot shy away from its responsibility to provide affordable housing for all, especially the weaker sections of society, said E. Sankaran Potty, general secretary of the association, explaining the contents of the proposed memorandum. According to figures provided by the association, there will be a shortage of 24.71 million housing units in the country in the near future.

The paper quoted a study by the Associated Chambers of Commerce and Industry of India, which said that despite the current slump, demand for housing would become “stronger and more intense” with rising income, a swelling middle class and rapid urbanisation. At present, the housing shortage is 19.4 million units in the country, of which 6.7 per cent is in rural areas.

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Improve infrastructure on city roads: DDC

September 28th, 2009

KOCHI: The District Development Committee (DDC) has asked the State government to resolve the traffic problems of the city by recruiting more personnel to city traffic police and constructing more overbridges and flyovers.

K. Babu, MLA, moved a resolution to this effect at a meeting of the committee held at the collectorate conference hall on Saturday. M.J. Jacob, MLA, seconded the resolution. District Collector M. Beena presided.

MLAs, M.M. Monayee, and Dinesh Mani pointed out the various difficulties in the repair works and maintenance of roads in the district.

Dr. Beena said that efforts had been intensified for the construction of the approach road to the Kumbalanghi-Ezhupunna Bridge. Executive engineer, Public Works, said that maintenance works of Brahmapuram-Karimukgal Road would be undertaken shortly.Bills on works executed using the flood relief fund till June 30 had been cleared, Assistant Development Commissioner V.S. Soman said.

K.V. Beena, programme coordinator, National Rural Health Mission, said that tender procedures had been completed for the maintenance works of the taluk hospital at Muvattupuzha. Babu Paul, MLA, asked for more facilities at the hospitals in Pandappilly and Payipra.

Dr. Beena said that Rs. 13 lakh had been allotted for the community health centre at Malippuram. M.K. Purushothaman, MLA, asked about the progress of work on the health sub centre at Nayarambalam.

MLAs, Dinesh Mani and K. Babu asked to remove the shortcomings in the functioning of government hospitals at Chellanam and Palluruthy.

Mr. Monayee and Mr. Jacob wanted the maintenance works of the Muvattupuzha and Periyar Valley irrigation canals to be completed by November. Mr. Paul said that early completion of survey works in the irrigation project areas was vital for the eligible to be granted possession rights. Dr. Beena informed the meeting that approval had been received for the construction of village offices at Kalloorkkavu and Kaipattur.

T.U. Kuruvilla, MLA, brought to notice the construction of compound wall for the forest depot at Kothamangalam and the resultant traffic problems in the area.

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