8/12/2019 Times Property Mumbai 16June2007

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Mumbai June 16, 2007The Times of India,

9CITY SCANNAVI MUMBAI3 REALTY

NEWS   6 EXPERTSPEAK

B E N C H M A R K  R E S I D E N T I A L P R O P E R T Y R A T E S I N M U M B A I

SOUTH MUMBAI Rs./sq.ft.

Cuffe Parade 18,000-45,000

Churchgate 15,000-24,000

Marine Lines 14,000-22,000

Malabar Hill 18,000-45,000

Napeansea Road 18,000-45,000

Wo rl i 1 2, 00 0- 35, 000

Prabhadevi 11,000-22,000

M ah im 7, 50 0- 11, 000

CENTRAL SUBURBS Rs./sq.ft.

B ycu ll a 5, 00 0- 11, 000

Wa da la 5, 00 0 - 7, 500

Sion 6,000-11,000

Kurla 3,000-4,500

Pow ai 4,500-11,000

C he mb ur 4 ,0 00 -7, 000

G hatkopar 4 ,5 00 -8 ,0 00

B ha nd up 3 ,00 0- 4, 500

Mulund 3,750-5,000

Thane 3,500-5,000

Dombiva li 1 ,8 00 -3 ,0 00

Kaly an 1,100-2,500

 Ambernath 900-1,400

NAVI MUMBAI Rs./sq.ft.

 Vashi 3,000-5,000

 Airoli 1,800-3,000

Kopar Khairane 2,500-4,500

S anp ad a 3 ,0 00 -4, 500

Nerul 3,000-4,500

CBD Belapur 3 ,000-4,500

Kharghar 2 ,0 00 -3 ,0 00

Kalambo li 1 ,4 00 -1 ,8 00

Panvel 1,800-3,000

WESTERN SUBURBS Rs./sq.ft.

Bandra (E) 6 ,0 00 -9 ,5 00

Bandra(W) 11,000-24,000

K ha r( E) 5, 000 -9, 00 0

Khar(W) 1 0,00 0-16 ,0 00

Santacruz(E) 5 ,500-9,000

Santacruz(W) 8,500-14,000

 Vile Parle(E) 5,000-9,000

 Vile Parle(W) 7,000-16,000

 Andheri(E) 4,000-6,500

 Andheri(W) 5,000-10,000

Jogeshwari 3 ,000-6,000

Goregaon(E) 3 ,000-6,500

Goregaon(W) 3 ,000-6,000

M al ad (E ) 3, 000 -5, 00 0Malad (W ) 3 ,0 00 -6 ,0 00

Kandiv li (E) 3 ,000-5,000

Kandiv li (W) 3 ,000-5,000

Bor iv li (E ) 2 ,8 00 -4 ,5 00

Bor iv li (W ) 3 ,0 00 -5 ,0 00

Mira Road (E) 1,200-2,500

 Vasai(E) 1,100-1,700

 Vasai(W) 1,100-1,700

 Virar(E) 1,000-1,600

 Virar(W) 1,000-1,600

Source : 'Narains Corp' PropertyConsultants & REALTORS ® 

* The difference from carpet to built up area is negligible in older 

buildings. Rates are subject to amenities,upkeep & vary within the same building depending on 

view,layout etc.

The next time you gohunting for a homeloan,the lender may

check if your building is

earthquake-resistant.Thisis one of the latest guide-lines issued by NationalDisaster Management Au-thority (NDMA).

The idea is to strengthencollateral security and alsocaution the borroweragainst purchasing sub-standard properties.

NDMA was formed un-der the Disaster Manage-ment Act 2005 and is head-ed by Prime Minister,Dr.Manmohan Singh.

N. Vinod ChandraMenon,Member NDMAsays, "The guidelines saythat banks will considerthe compliance of seismicsafety before offering hous-ing loans and loans forconstruction of multi-storeyed complexes".

NDMA has sent copies of the guidelines to the Min-

istry of Finance (MoF),which will forward it to theReseve Bank of India (RBI)for issuance. As per thethese guidelines all build-ing structures - residentialand commercial, includingshopping malls, multiplex-es, bridges, hospitals andother critical lifelinestructures whose comple-tion is after June 30,2007 -will have to mandatorilyadhere to earthquake re-sistant design.

G.Raghuraj, DeputyGeneral Manager, RBI,says,"We have not yet re-ceived any official commu-nication from MoF. Of course,once it is received,RBI's department of bank-ing operations and devel-opment will take a view onthe issue and issue circu-lars to all the banks.”

HSBC Head,PersonalFinancial Services, India,Mr. Nicholas G.Winsorsaid, "It's a welcome move,as the banks will lend onlyto earthquake resistanthomes.The banks can setout responsibility on theconstruction industry tocomply with the earth-quake resistant codes and

follow construction prac-tices that achieve earth-quake resistant homes.This will strengthen the

collateral security of thebank against which thebank gives loans. The newpolicy will ensure thathomes attain a high stan-dard of earthquake protec-tion; even banks will feelsecured to provide housingloans,as it gives strengthto their collateral securitythereby, reducing theirrisk profile."

Kapil Wadhwan, Manag-ing Director,Dewan

Housing Finance Corpora-tion Ltd acclaiming themove and said it shouldhave been enforced long

ago.Wadhwan says his com-

pany follows stringentnorms and has experts toguide on the issues of safe-ty. This is apart from thecertification from the de-velopers of the propertythat it satisfied safety stan-dards.Since most homeloans are given to people insmaller towns and in citieswhere self- construction isthe practice, I think thisstep of ensuring safe devel-opment will go a long wayin safeguarding the assets

in case of naturalcalamities," he explains. "If there are instructions fromRBI on this issue we areready to comply with thesame."

Experts reveal thatbanks were earlier in adilemma when propeties

mortgaged were destroyedin an earthquake. The newguidelines from the NDMAfor revised building codesreveals that there is a needfor better protection levelagainst a natural calamity.The key advantage of adopting higher levels of earthquake protection isthat a much lower interest

rate can be negotiated withthe banks for the particu-lar project.Banks wouldgladly oblige as higher

safety also reduces theirrisk levels.Insurance com-panies will also follow suitin reducing the premiums.The direct implication forthe buyer would be thatthis twin advantage wouldoffset the cost of higherprotection."

Ashutosh Limaye -Vice-President, Trammel CrowMeghraj says, "Mumbai'sseismic status has gonefrom medium to medium-high now - this relates to aprogressive geologicalphenomenon. In other

words, this certainly iscause for concern.By re-fusing to grant home loansfor properties that do notconform,banks can make asignificant and progressivecontribution.The mini-mum that they should in-sist on is a certificate that

affirms a project's earth-quake resistance compli-ance," says Limaye.

Besides being beneficialto the financial institutionsand developers, the movewill also secure the invest-ments and assets of thebuyers against any unfore-seen calamity.

INPUTS: YAMINI DHYANI

Under new guidelines from the National DisasterManagement Authority, banks may only provide loans forearthquake-resistant buildings, says Prasad Sathyen

Secure your assets

The Central government has notifiedthe levying of service tax on onlythose societies where maintenance

charges paid by members exceed Rs 3,000per month and the overall gross collectionof the society is more than Rs. 8 lakh per an-num. This has ensured that middle and low-er income group societies will be exemptedfrom these taxes,and is definitely advanta-geous to most societies.However societieswith annual collections exceeding Rs 8 lakhwill have to cough up service tax at 12.36 %.

Both the clauses of a member payingRs 3,000 per month as maintenancecharges and the society's collection exceed-ing Rs 8 lakh per annum must be fulfilledfor a society to fall in the bracket of serv-ice tax. The society is not liable to fileservice tax returns if it collects more thanRs 8 lakh per annum, but individual mem-bers' contribution is less than Rs 3000 permonth. The new law is in effect from April1, 2007.

"Laws are made for the welfare of thepeople and one must not doubt its inten-

tions. This law is implemented so as toconcentrate on a particular section of soci-ety," says Mr. S.J.Singh, Commissioner of Service Tax Department.

There are more than 23,000 registeredhousing societies in Mumbai and Thane.Of these over 90 per cent of societiescharge less than Rs 3,000 for maintenance

purposes. This has ensured that more than90 per cent of the societies will be exclud-ed and only very high premium residentialprojects will file returns.

"Smaller societies will be definitely ben-efited from this amendment since theircollection will be less than Rs 8 lakh. Bysaving this service tax they will be able to

use this amount in a better way," says Mr.Gopal Sharma, General Manager, Market-ing, Gundecha Builders.

Earlier, from June 16, 2005 all co-opera-tive societies whose collections exceededRs 4 lakh were levied 10.2 % service tax. Soeven complexes hosting higher and lowermiddle-income groups were included un-der this bracket and residents had to bearthe burden of taxes.

Mr. Ramesh Prabhu, Chairman of Ma-harashtra Societies Welfare Associationsays,"The decision made by the Centralgovernment is really commendable. Ex-cluding service taxes on monthly mainte-nance will prove to be beneficial for mostsocieties.” A.L.Wadhwani,Secretary of Pearl Towers in Mulund, is quite happywith the new law. He says: "Nowadays wesee tax being levied on a variety of servic-es. In such times excluding maintenancecharges from the taxable services is a wel-come relief for us. For middle income soci-eties like ours this will help us in manag-ing the budget well and save more."

Meanwhile, not many are supporting theidea of including housing societies undertaxable services. The argument stems fromthe fact that a cooperative society is a groupof people who are providing services tothemselves, and not to any secondary party.

In the past,the service tax departmentopined that payments like water tax and

property tax should be excluded from serv-ice taxes, but now, however, transfer fees, do-nations, property tax, sinking fund,watercharges and all of which will be accountedfor computing the tax are included underthe service tax bracket.Charges under tele-phone bills, repair and maintenance con-tracts, lift maintenance and security have

been exempted.Mukesh Patel of Neelkanth Group says,

"Levying service tax on the money that thesocieties gather for maintenance is not jus-tified as societies are not profit-making or-ganisations. The very basic idea to form thesociety is to manage their premises in an ef-fective way by collecting money from mem-bers as per the need and not in excess. Beingcognizant of this fact,the central govern-ment has made this very positive amend-ment."

"It is the members themselves who elector select their committee. It is a job that isnot just honorary but also thankless. If thesocieties employ the services of some CAor MBA then they should pay the servicetax on his professional bill. Why shouldsomeone pay any service tax for keepinghis own house in order all by himself?”

High premium residential projects dot-ting the landscape of South Mumbai andreclamation areas where all amenities andcomforts are given for the convenience of the selected flat purchasers in the city will

be included in the 'taxable' bracket.It focus-es primarily on high net-worth individuals.It is unlikely that property buyers willingand able to buy into a housing society thatcollects maintenance charges of Rs.8 lakhor above annually would consider this a se-rious issue. It will certainly not become anew criterion for choosing where to buy a

home, and it will not affect middle-incomeproperty buyers, feel experts.

On the whole this move will definitelyboost middle and lower income housingprojects. However, the very basicquestion about why housing societies arebeing levied service tax remains unan-swered.

Reap the benefitsRecent amendments in the service tax protocols will provebeneficial to smaller housing societies, say Binita Ramchandaniand Rohan Rao

“The policywill ensurethat homes

attain a highlevel of earthquakeprotection

”

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