THE EFFECT OF DEMONETISATION ON THE REGISTRATION OF PROPERTIES in BENGALURU-


THE STAMP DUTY COLLECTION ON THE REGISTRATION OF PROPERTIES WENT UP BY MORE THAN 30%.

THE NUMBER OF DOCUMENTS REGISTERED DID NOT GO UP BUT THE STAMP DUTY COLLECTION WENT UP BY 30%.  THE ILLEGAL BLACK MONEY NOW ACCOUNTED FOR.

THE ROLE OF BLACK MONEY IN OPERATION IS CLEARLY EVIDENT FROM THE RESULTS

The Property Market in Bengaluru has recovered from the demonetisation slump and going by the figures of the Stamps and Registration Department, which has overshot its revenue target of 6,000 crores for Bengaluru by mopping up around 6,200 crore, the department’s revenue collection target for 2017-18 is 9,000 crore, of which 8,820 crores has been recovered.

Demonetisation had impacted the realty market in the state hard. It showed up in last year’s revenue figures of the Stamps and Registration Department. There was a shortfall of Rs 1,350 crore and a majority of the deficit was from Bengaluru. The situation was worse than that of the 2008 economic slowdown collection figures — the collection stood at around `7,750 crore vis-a-vis the target of Rs 9,100 crore.

Bangalore`s contribution to the state exchequer in terms of stamp duty is 70% and the rest of the state only accounts for 30%.

The Stamps and Registration Department is among the top three list of revenue garners for the state treasury after Transport and Commercial Tax Departments.

Last year there was a shortfall of Rs.1, 350 crores from the expected revenue but this year with fewer documents the department has collected Rs.8, 800 crores and the target for Bengaluru was Rs.6,000 crores, but Bangalore collected Rs.6,200 crores.

 

SUPREME COURT OF INDIA HAS COME TO THE RESCUE OF THE PROPERTY BUYERS IN THE CASE OF UNITECH


The Supreme Court of India today asked the troubled real estate company Unitech Limited to furnish the details of unencumbered assets for auction purposes later to raise money to refund home-buyers.

A bench headed by Chief Justice Dipak Misra also imposed a cost of Rs 25 lakh on JM Financial Asset Reconstruction Company, which had taken over some loans advanced by HDFC Bank to Unitech Limited.

The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, said that the asset reconstruction company had given the impression that it would pay the money for a refund to home buyers and now the entire proceeding had been diverted.

“We treat it as an unnecessary diversion from the main case,” the bench said while imposing the cost.

The bench asked the real estate company to file the details of its unencumbered assets and made it clear that they would be auctioned to settle the deals of hassled home buyers.

The details of assets have to be filed within 15 days from today.

The firm had on March 5 told the apex court that Mumbai-based firm J M Financial Ltd was interested in financing their under-construction projects.

The apex court had on October 30 last year said that Unitech Ltd Managing Director Sanjay Chandra, currently in jail, would be granted bail only after the real estate group deposited money with its registry by December-end.

The top court had earlier directed the jail authorities to facilitate Chandra’s meeting with his company officials and lawyers so that he could arrange money to refund the home-buyers as well as for completing the ongoing housing projects.

Chandra is seeking interim bail from the apex court after the Delhi High Court on August 11 had rejected the plea in a criminal case lodged in 2015 by 158 home-buyers of Unitech projects’ — ‘Wild Flower Country’ and ‘Anthea Project’ — situated in Gurugram.

HOME LOANS AND INSURANCE – WHERE IS THE CATCH !!!


The moment the home loan is sanctioned the borrower is elated as if he got a bumper prize but the truth is that he has entered into an agreement of longstanding labour.

Majority of the financial institutions or the managers at the banks or the banks itself will have an INSURANCE POLICY attached to the HOME LOANS.

Some banks/financial institutions add a single premium to the loan amount and the unsuspecting, ignorant and dumb buyers sign the home loan agreement, which includes the insurance premium not only on the life of the borrower but also for the property.

The insurance premium varies on the amount borrowed and the age of the borrower and in general, the premium on an average is around Rs.50,000/- for Rs.25 to 50 lakhs.

Even though the borrower has covered his life with insurance from some other company, the lending institution/bank will provide insurance for the borrower as well as the property, so as to ensure that the bank money is NOT LOST.

The insurance premium is added to the home loan and the borrower pays interest on this for many numbers of years.

This premium along with other charges, taxes, clubhouse, deposits and statutory duties forms around 20% to 25%.  The borrower pays interest on these additional amounts.  It is a lifetime punishment for the borrower.

 

FRAUD AND CHEATING UNDER THE NAME OF CLUBHOUSE MEMBERSHIP, BESCOM DEPOSIT, BWSSB DEPOSIT AND LEGAL CHARGES OR EXPENSES—-CHECK-THE ADDITIONAL EXPENSES AND CHARGES WHILE BUYING A SITE OR APARTMENT


Spicy Ads in newspapers and on the internet and melodious and spicy callers on phone trying to sell/market the properties is the order of the day.

Buyers are not aware of the charges, taxes, deposits and other additions to the prices quoted by the sellers/builders and marketing agencies.

The following may be the some of the additions which are generally and usually hidden/concealed or not made public.

1). Club House. ( In general, the membership is not at all required for the majority of the buyers, but the builders’ force/compel the buyers to PAY FOR IT)

The average cost or charge is around Rs.50,000 to Rs.3,00,000/-

The buyers without any awareness pay this amount.  This forms a part of his loan.  The buyers pay interest for this unnecessary addition.

2). GST.

This is a statutory tax payable.

3). Electricity Deposit.

The deposit is calculated on the KV allocated or sanctioned as a whole to the project and is divided into each apartment based on the allocation.

Fraud and Cheating under the name and style of Deposit.

In general, all the sellers charge ABNORMAL deposits amounting anywhere between Rs.50,000/- to Rs.2,00,000/-

4). Water Supply Deposit.

This is levied on the builder by the supplier on the Pro-Rata basis, this deposit is charged for the whole complex or project.

Fraud and Cheating under the name and style of Deposit.

In general, all the sellers charge ABNORMAL deposits amounting anywhere between Rs.50,000/- to Rs.2,00,000/-

5). Legal Charges.

Major Fraud and Cheating Head.

Whose legal charges?

NO ADVOCATE OR LAWYER or LAW FIRM has paid any service tax on this head, which is illegally collected by the sellers/builders.

For Example, One housing complex has 100 apartments and the seller/builder charges Rs.30,000/- on an average as legal charges or expenses and collects the same from the property buyers and this amount totals around Rs,30,00,000/-

NONE OF THE ADVOCATES OR LAWYERS OR LAW FIRMS have ever shown this amount in their SERVICE TAX RETURNS NOR IN THEIR INCOME TAX RETURNS.  It is pocketed by XXXXXXXXXXXXXXXXXXXXXXXX. Great Cheating and Fraud.

6). There are few interesting characters/sellers/builders which charge or demand payment for the POWER GENERATOR in the complex.

It is generally between Rs.25,000/- to Rs.75,000/-

In addition, there are statutory or mandatory duties like Stamp Duty, Cess and Registration Fee must be borne by the buyers at the prescribed structure.

All the aforesaid taxes, charges, deposits (legal and illegal) works out at around 20% above the price quoted in the newspapers and the offered or quoted price.

NOTHING IS FREE.

EVEN THE WORD FREE IS NOT FREE.

The buyers must pay for all the services including transportation for the inspection, home loan mela venue rent, coffee, tea, soft drinks, sweet talk, brochure and what not.

ANYTHING AND EVERYTHING is CHARGEABLE.  NOTHING IF FREE.