New property tax rate for Mumbai passed by BMC

The new property tax calculating formula has been passed by the BMC.This calculation will now be based on the value of the property rather than the rent which it can earn in a year (which was the earlier formula).The result of this change will mean no change for flats less than 500 sq ft but for newer properties it can mean double the property tax than before.These proposals were passed by the BMC standing commitee on Thursday,10 May,2012.According to the new formula,the property tax rate will be multiplied by the Capital value of the property to arrive at the property tax.According to the BMC,the new method will cause an increase in 19% percent of properties.Rest will remain unaffected according to them.Earlier even the ward officer could increase or decrease the property tax if he saw it necessary,but this will not be possible anymore. According to them,the new tax will fetch 32,000 crores against 3200 crore at present. The new rates of property tax will be the following :-Residences (with metered water connection):0.41% of capital valueOffices:1.95% of capital value.Banks:3.91% of capital value.Illegal buildings (without OC or water connection):8.44% of capital value. The capital value of a property will be determined by…

How to fight an errant builder

Home construction is a service under the Consumer Protection Act, hence it falls under the jurisdiction of consumer courts. Besides taking all possible precautions before purchase, purchasers should be vigilant even after paying the entire sales amount to the builder. They should not get complacent and think that the builder will deliver a defect-free property. As for the builder, he will be held responsible for all defects in the building, and for delays in handing over possession. Consumer Courts and the Apex Court have awarded damages whenever they have found defects in the home. Let us study a few cases where the courts have awarded damages and held builders liable for their negligence. In Ms. Ruchita D Mirchandani vs. Godrej Properties and Investment Ltd., the purchaser entered into an agreement with the builder for the purchase of a flat. But due to family problems, the purchaser sought to terminate the agreement. The builder informed that the purchaser had no right to terminate the contract. The builder contended that he alone was entitled to exercise the option of terminating the contract. Hence, he said, if the purchaser did not pay the balance amount, she would have to forego the amount deposited by her. The State…

Govt falters on 5 lakh affordable houses scheme.

Courtesy:TIMES OF INDIA Tomorrow, it will be exactly two years since Maharashtra Chamber of Housing Industry (MCHI) and the state government inked a Memorandum of Understanding (MoU). The intent was to develop five lakh affordable homes in Mumbai and the Mumbai Metropolitan Region (MMR). However, in a recent statement, MCHI has claimed that nothing has been accomplished in the last 24 months. According to the builders’ body, the proposal to create five lakh houses as part of the Homes for All initiative between the real estate industry and the Maharashtra government is gathering dust in Mantralaya. Distant dream“The overall objective of the initiative was to address the yawning housing demand-supply gap and to provide affordable homes to the economically weaker sections, lower income group and middle income group,” Paras Gundecha, president of MCHI-CREDAI said. In this whole initiative the builders were going to develop the affordable homes on their projects and lands. MCHI also claims that the availability of these five lakh houses would have eased the demand-supply mismatch and kept the market rates under some kind of check. “But unfortunately, today, Mumbai has emerged as the costliest real estate market in the country,” said Gundecha. Gundecha claims the government…

Database of land use in Maharashtra under way

The revenue department has begun the process of creating a data bank on all government land in the state. This measure follows a stricture in the recent CAGs report that data on land given on lease is not available with the department. Swadhin Kshatriya,principal secretary,revenue and forests department,said they had taken the CAGs comment seriously and wanted to ensure that the government had a data bank of its land. The data bank will be created at various levels such as the village,tehsil,collector and sub-division,he said. The long-term aim,he said,was to monitor how the land was being used and whether the terms and conditions set by the government were being followed. During the recent legislative session,speaker Dilip Walse-Patil had directed the state government to order a CBI inquiry after it was brought to the notice of the House how the city collectorate had woken up 17 years after the lease agreement for a 75,000 sq feet plot in Mazgaon had expired. On Monday,the department issued a circular to all departments dealing with land to update their records on land given on lease,the status of lease,the rent being charged and whether the lease conditions had been violated. The CAG report brought out…

Will take 3 years to clear unsold stock of flats in Mumbai

There are so many residential flats lying unsold in Mumbai that it will take more than three years to clear the stock. This means the skyrocketing price of your dream house might ease up.The value of the current unsold housing stock in Mumbai is around Rs8,535crore. According to the quarterly report released by real estate research firm Liases Foras, there is 12.9 crore sqft inventory (housing projects launched, but not necessarily built) with 1.13 lakh housing units lying unsold in the Mumbai Metropolitan Region (MMR), which includes the city and its satellite towns. Around 6 crore sqft inventory with 35,000 housing units is lying unsold within the city limits, the report added. The size of each flat in the MMR is 1,100 sqft, while that in the city limits is 1,600 sqft. “It will take at least 40 months to sell this unsold stock in Mumbai, and that too if there are no new projects. But launches are happening frequently. This means the inventory will pile up further,” said Pankaj Kapoor, managing director of Liases Foras.“In a healthy market, the inventory should be cleared within eight months. But the number of unsold flats in the city is rising every year.…

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