Mahindra Group: Eyes low cost homes

The real estate and infrastructure company of the above $ 1,100 crore Mahindra group, Mahindra Lifespace Developers, has kept low cost housing under its radar and is in the process of acquiring appropriate technology to make a grand entry into this segment.
Mr. Anita Arjundas, MD, Mahindra Lifespace Developers said, ''Our Company exploring possibility of entering into affordable home segment. One can't succeed in this business by constructing 600 homes. You need to build 10,000 homes a year. We are looking at that kind of size"


Mr. Arun Nanda, Chairman, Mahindra Lifespace Developers said, ''Affordable homes requires scale. We need to look at the process. We need to find the appropriate technology to build such homes under tight budget" 
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Quote PAN to buy gold in cash above Rs. 5 lakh

Under attack for not being able to curb black money transactions, the India's finance ministry is planning to make quoting of the permanent account number (PAN) mandatory for more transactions.

The income tax (I-T) department may make quoting of PAN in documents for sale and purchase of bullion or jewellery involving cash transfer of Rs. 5 lakh or more mandatory.

PAN Number  may also be required for cash payment of Rs. 1 lakh or more as life insurance premium, amid concerns that insurgents may be parking funds in high-value insurance policies.

The department is also considering changes in the limits for cash payment for foreign travel. At present, the cap is Rs. 25,000, including fare, the fee of a travel agent/tour operator and purchase of foreign currency.

According to a finance ministry official,"Rules are being changed with regard to PAN Number requirement in cash transactions to track the investment pattern of high net worth individuals. This will help curb black money."

The Central Board of Direct Taxes (CBDT) may shortly notify the changes.

Mr. Amitabh Singh, Tax Partner, Ernst & Young said, "Furnishing PAN is just one leg of the transaction. Whenever PAN is captured, the trader should put it in the invoice and summarise it in the form of the annual information return. Then, the government can match the transaction with the return. The idea is to check black money, as cash transactions don't figure in official channels" .

The 10-digit PAN enables the I-T department to link all transactions of a person. It was introduced to facilitate linking of various documents, including payment of taxes, assessment, tax demand and tax arrears. It facilitates easy retrieval and matching of information related to investment, borrowing and other business activities of tax-payers collected through various sources.

From April 2010, all specified transactions without PAN number attract tax. Tax higher than the prescribed rate or 20% is deducted on all transactions liable to Tax Deducted at Source (TDS) in cases where PAN is not available. The law is also applicable to NRI's (Non Residents Indians) in respect of payments or remittances liable to TDS.

The I-T department has already made it mandatory for employers to quote PANs of employees and parties from whom tax is deducted while filing TDS returns. The penalty for not quoting PAN, announced in Budget 2009, was aimed at strengthening the data base of the revenue department and increasing tax compliance.

Src: rediff.com
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China to tighten land controls

China to tighten land controls to curb housing inflation

The Chinese government will tightly regulate land supply to boost affordable housing and to clamp down harder on illegal land use this year (2011) , the Ministry of Land and Resources said as it seeks to contain housing inflation.

China has increased land supply for government-subsidised and small homes in the past 2 years to ease property prices for the benefit of first-time buyers, but some developers have built commercial properties on land slated for affordable housing, prompting an extensive campaign to punish culpable officials and executives.

"The illegal use of land will probably rebound this year," Gan Zangchun, a deputy chief of land inspection, said.

On the one hand, demand for land is surging as shown in a survey by the ministry in early 2011 March; on the other, China is keeping tight controls on land supplies.

"The demand for land as shown in the survey far exceeds the total amount of planned supply for this year," he said, adding that the supply shortage would only worsen in years to come.

"To be frank, the days when the demand for land for construction is fully met by supply are gone forever," Gan Zangchun also said.
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Unitech to invest in affordable housing in chennai

Unitech to invest Rs 2,000 crore in affordable housing projects

Unitech Lmited has announced plans to invest Rs 2,000 crore in the affordable housing category in the year 2011-12.

“We plan to invest Rs 2,000 crore in cities like Chennai, Bangalore, Delhi NCR, Bhopal, Mohali, Ambala in this financial year,” Unitech Limited vice-president Routhu Nagaraju, said.

Routhu Nagaraju said the company will be investing Rs 75 crore in the first phase of its affordable housing project ‘Unihomes’ in Ambala, Haryana State which is a part of nearly 150 acre Unitech township project.

In the first phase the company would be offering 300 units of two and three bedrooms, he said. The starting price of a unit in Ambala would be Rs 18.4 lakh.

Routhu Nagaraju also said ‘Unihomes’ is a part of the business plan of covering 10 million square feet and will be launched in multiple phases.
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Oragadam Sipcot project has given a boost to real estate in Walajabad

Happening place Walajabad railway station and the town; rail connectivity and proximity to the Oragadam Sipcot project
Many Chennai and kanchipuram residents are waiting at the sub-registrar's office in Walajabad town to register property for them. a software engineer, a private Bank Manager to Walajabad. Walajabad Panchayat Union have nearly 60 villages. 15-km four-lane road from Oragadam Junction to Walajabad town.
Far from developed and with little sign of activity — except for granite stones separating layouts from adjacent agricultural lands — these villages are expected to gain in significance when the Oragadam Sipcot becomes fully operational and the junction is completed.
Buyers prefer outlying villages that are part of larger Walajabad to the town for investments. Many villages being taken over by developers.
Real estate activity is stripping Uttukadu, Kunnavakkam and Varanavasi areas and other rural villages. They hold an attraction for investment buyers because of their proximity to Oragadam.
Blessed with rail connectivity, the town attracts people who work in Chennai, Chengelpet, Padappai,Mudichur, and Tambaram. To cite just one instance, many residents of Teachers' Nagar — a big colony with rows of 1,310-sq.ft. plots established in 2002 — commute by train to work, every day.
The Railways operates nine two-way suburban services between Chennai Beach and Tirumalpur every day. The travel time from Walajabad to Beach by these trains is nearly 2 hours.

High land prices in the town. For exemple, plot in the proximity of Walajabad railway station sells nearly Rs. 25 lakh per ground (2400 s.ft)
It, therefore, makes sense for layout developers and builders to buy lands — available at much lower prices — in villages closer to Oragadam and play the proximity card.
yields from their fields being very low, many farmers in these villages have chosen the easy way out and sold their lands. They live off the interest

In Walajabad, there is a marked resistance to apartment living. Strictly independent houses are the norm

Buyers are naturally interested in layouts in the surrounding villages. With builders and developers procuring huge parcels of land for future projects there.
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TVS Housing plans budget housing. Price Rs. 7 lakh

The 100-year-old Chennai-based business house TVS group, known for its expertise in auto, auto components and finance, is planning to take a plunge into low -cost housing.

It will do so through TVS Housing, a 100 per cent arm of TVS Motor Company , which would debut through a pilot low-income housing project at Nanmangalam, near Sriperumbudur, 50 km from Chennai.

The broad plan is to sell flats, of sizes 385-500 sq ft, at prices ranging from Rs. 7 lakh to Rs. 10 lakh, sources close to the matter said.

That's an area where prices easily go upwards of 3,500 per sq ft.

About 2,500 flats would come up on 28 acres at Nanmangalam, according to a TVS Housing presentation.

The immediate goal is to develop one more project in Chennai. Sources said the company is now building land banks for future projects.

"The vision is to build 20,000 affordable dwellings and achieve a turnover of Rs. 1,000 crore in the fifth full year of operation," a source said.

In recent times, low-cost or budget housing segment has attracted professionals such as Jerry Rao (who founded Mphasis), Ramesh Ramanathan (ex-Citibank) besides the Tata group.

Also, more players have emerged in the affordable housing finance segment.

In December 2009, M Anandan, former MD, Cholamandalam Investment and Finance Co, promoted Aptus Value Housing Finance along with V P Nandakumar of the Manappuram Group, to focus on low-income and affordable housing finance segment in the suburbs and semi-urban centres in the south.

Other players include Muthoot Papachan Group and Chennai-based Shriram Group.

Interestingly, this isn't the first time the TVS group is venturing into the housing space. It's the first commercial venture, though.

In 1958, the group established the TVS Co-operative Building Society to cater to the housing needs of its workers.

As of March 2007, it had over 1,700 members and a share capital of Rs. 56 lakh. It had developed two major sites in Madurai 

TVS Housing was incorporated on March 22, 2010. The TVS Group acquired the entire paid up capital of Rs. 5 lakh of TVS Housing and it became a wholly-owned subsidiary of the company effective June 21, 2010.

Src: B.S and E.T
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TVS Housing: Plans to foray into budget home, Rs. 10 lakh

The 100 year old Chennai based business house TVS group, known for its expertise in auto, auto components and finance, is planning to take a plunge into low-cost housing.

It will do so through TVS Housing, a 100 per cent arm of TVS Motor Company, which would debut through a pilot low-income housing project at Nanmangalam, near Sriperumbudur, 50 km from Chennai.

The broad plan is to sell flats, of sizes 385-500 sq ft, at prices ranging from Rs. 7 lakh to Rs. 10 lakh, sources close to the matter said. That's an area where prices easily go upwards of 3,500 per sq ft.

About 2,500 flats would come up on 28 acres at Nanmangalam, according to a TVS Housing presentation.

The immediate goal is to develop one more project in Chennai. Sources said the company is now building land banks for future projects.

"The vision is to build 20,000 affordable dwellings and achieve a turnover of Rs. 1,000 crore in the fifth full year of operation," a source said.

In recent times, low cost/budget housing segment has attracted professionals such as Jerry Rao (who founded Mphasis), Ramesh Ramanathan (Ex-Citibank) besides the Tata group.

Also, more players have emerged in the affordable housing finance segment.

In December 2009, Mr. M Anandan, former MD, Cholamandalam Investment and Finance Co, promoted Aptus Value Housing Finance along with Mr. V P Nandakumar of the Manappuram Group, to focus on low-income and affordable housing finance segment in the suburbs and semi-urban centres in the south.

Other players include Muthoot Papachan Group and Chennai-based Shriram Group.

Interestingly, this isn't the first time the TVS group is venturing into the housing space. It's the first commercial venture, though.

In 1958, the group established the TVS Co-operative Building Society to cater to the housing needs of its workers.

As of March 2007, it had over 1,700 members and a share capital of Rs. 56 lakh. It had developed two major sites in Madurai. 

TVS Housing was incorporated on March 22, 2010. The TVS Group acquired the entire paid up capital of Rs. 5 lakh of  TVS Housing and it became a wholly owned subsidiary of the company effective June 21, 2010.

Source: Business Standard and Economic Times
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