Real Estate Bill approved by Union Cabinet

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015, as reported by the Select Committee of Rajya Sabha. The Bill will now be taken up for consideration and passing by the Parliament.

The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.

The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Government of India to provide ‘Housing for All’ by enhanced private participation.

The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.

The salient features of the Bill are as under:

1. Applicable both for commercial and residential real estate projects.

2. Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.

3. Registration of real estate projects and real estate agents with the Authority.

4. Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.

5. Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.

6. Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.

7. Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.

8. Promoters barred from changing plans and design without consent of consumers.

9. Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.

-- CA Kasliwal Ambar

IIT Delhi uses lottery system to select students who will meet Mark Zuckerberg

When Facebook founder and CEO Mark Zuckerberg interacts with students and faculty at the Indian Institute of Technology in Delhi in a town hall on Wednesday, most students will be sitting out. Almost everyone of the over 8,000­ strong student community at the IIT wants to meet and, if possible, ask a question to Zuckerberg, a role model for many of them. But the venue where the tech entrepreneur is holding the town hall is too small to accommodate all of them. Only one in nine students will get an entry to the hall and they have been selected through a lottery. The hall has a seating capacity for 1,100, but only 900 of the seats are reserved for students. The entire session is being handled by a Facebook team.

It started the process last Thursday and the response so far has been huge. When an invite was posted on the IIT website, 1,300 students filled up the application form in the first two hours. Facebook discontinued the link after it got 3,500 applications. "Town hall has always been popular, but not like this one," said a faculty at IIT Delhi. "Mark is a role model for most of the students as he is easy to identify with. Also as the focus of both the institute and students is moving towards entrepreneurship and innovation, his visit has created a lot of enthusiasm." Zuckerberg is expected to speak for 15 minutes and spend the next hour answering questions from the audience.

Arshad Nasser, one of the lucky students selected to participate in the town hall, said there would be no direct questioning, though most town hall meetings allow that. "I wonder whether my question would be read out on Wednesday." Nasser, who is in his final year of Master's in Design, said he was not sure whether it was the question he had put in the application form for Zuckerberg or the lottery that got him through. His question was: "Will FB extend itself as a physical product so that it can interact with devices at home and also connect with social circle?"

Jyoti Meena, a final year B.­Tech student, said many of her friends who could not make it to the list were upset. Still, she said the Facebook chief 's visit itself has created excitement on the campus. "Before any town hall, there are posters, banners, etc. but this time there was nothing but still the entire campus is abuzz with FB," she said. Her question for Zuckerberg is: "What was your Eureka moment that helped you decide that to pursue with FB?" Dhiritraj Das, a third ­year dual degree (Bio-Chemical engineering and Bio-­technology) student, is one of the majority who could not make it to the list of students who received invites for the town hall. Das is already an entrepreneur and is busy bringing an e-commerce venture, called All Day Sports, to life. "I wanted to ask Zuckerberg a question on the Internet.org. As I would want to know what technology support will FB provide for this so that rural and backward areas in the country get access to the Internet?"

A Facebook spokesman said the upcoming event is a rare occasion for the company to have the media invited in any country. "It is mainly because India is one of the countries with largest users outside of the US for the company," he said. Zuckerberg in his earlier speeches at the company headquarters had shared his views on India. "India is personally very important to the history of our company here. This is a story that I have not told publicly and very few people know," he had said. During his visit, Zuckerberg is likely to be mostly in Delhi, said a source.

-- CA Kasliwal Ambar

Reference -

• ET

What the Wolf Of Wall Street has to say on Indian Economy

Views of Jordan Belfort

Market is current on bumpy ride where we are seeing one day market is going up and second day market corrects. This is a very negative sign as market is highly volatile and is making new low at each trading session. Last week we had made a low of 7850 and this week we made a low of 7650. Now the whole street is taking of 7500 and 7200. But our conviction is clear that market has bottomed out and we don’t see any further pain on street. A 50-60 pts correction is possible but chances of markets getting back to 8000 levels are high. Currently global concern is resulting in shrinking on market and in compare of Global scenario Indian fundamentals are far better so every fall is a buy and this is the right time to buy. Valuations are quite cheap and long term bet is surely on India. Banking stock has been heavily hit in last 15 trading session. Bank nifty has corrected from 19000 to 16500. PSU Bank like SBI, OBC, BOI, Corporation Bank are all trading at 52 and 72 week lows. Most of the banking stocks are available at 2013 lows so we advise to buy these stocks as rebound in PSU banks is definitely around the corner. Most of the PSU bank are available at P/BV of 0.32 and lower which is surely a buying opportunity. We are once again advising you that currently the whole street is in a mood to sell and this is the best opportunity to buy as the same people will come back to buy at 8000 and 8100 levels. So don’t miss the chance. We, at CNI, are bulls on street. Currently market has been surrounded by full negativity.

No one is ready to buy. We are talking with many retailers, brokers, investors and all are afraid to invest as all have one opinion in common that nifty will touch 7000 levels. Media, Analyst, Foreign brokers all are talking negative and are bearish on stocks. Poor monsoon, failed parliament session, Bihar election and earning of companies is in the mind of the people. We believe Indian economy is in a far better state than 2013. We have strong foreign reserves to protect downside risk of our currency. Crude price is another boon for the economy. Coming to reformative action Govt. action will fail till 2016 as Rajya-Sabha fails majority and will gain majority only in 2016. So we should give the new Govt some time and wait for results. Bihar election is a strong trigger and we estimate NDA Govt. will gain majority.

-- CA Kasliwal Ambar

If only a chip can bring such a big change in the Rural area!

A tiny chip designed in Bengaluru, the size of a postage stamp, might hold the answer to connecting India's rural population to the Internet, an ambitious goal being chased by the likes of Google, Facebook and Microsoft.

The chip, called Pruthvi, powers a system which can use television White Space — or wasted spectrum bandwidth — to beam Internet to scores of households. This innovation by Saankhya Labs, is important in today's India, where on one hand the government is pushing its ambitious 'Digital India' programme and on the other, large technology companies are working on similar goals.
"World over regulatory authorities are using or planning to use this spectrum for their respective connectivity programmes. India can take the lead in both technology and the markets for TV White Space-based broadband delivery.

And how long can the government not push the envelope... It's got to be expedited sooner than later," said Parag Naik, CEO and Co-founder of Saankhya Labs.

Founded in 2007 by Naik, Hemant Mallapur and Vishwakumara Kayargadde, the company has developed a system called Meghdoot, powered by its Pruthvi chip, which can utilise the existing TV White Space bandwidth available in India to provide wireless broadband to remote areas. TV White Space refers to the unused spectrum between active TV channels that are traditionally used for over-the-air transmission using TV towers and rooftop antennas. In India, this mainly refers to the spectrum used by the likes of Prasar Bharti.

The Meghdoot product family consists of a base station and user-side modem that can together provide Wireless Rural Broadband using the TV White Space spectrum from 400 to 800MHz.

The technology does not require line-of-sight, thus ensuring longer range, and can serve up to a radius of 10-15 km depending on antenna tower height and transmit power. The range can also be further increased with more powerful and taller antennas.


The company is soon set to conduct field trials across the country in collaboration with IIT-Bombay, IIT-Delhi and IIT-Hyderabad. They are also in discussions with Microsoft to do trials at Srikakulam in Andhra Pradesh.

The Meghdoot product line is compliant to the Wi-FAR standard, making the device compatible for use in other countries too. The company is also engaged with partners for trials in the Philippines, the US and Singapore.

-- CA Kasliwal Ambar

Reference -

• ET

GOI makes changes in Indirect tax rates

Government of India has made the following changes in indirect tax rates, effective from 19th October, 2015:

1) In view of the continued fall in international prices of wheat and the anticipated adverse impact of increased imports during the first half of this financial year, basic customs duty on wheat has been increased from 10% to 25% for a period upto 31.03.2016. Notification No.51/2015 ­Customs, dated 19.10.2015 may be referred to in this regard.

2) Specified biodiesel is exempt from central excise duty. However, its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide are chargeable to central excise duty leading to CENVAT credit accumulation. Central excise duty has been exempted on RBD Palm Stearin, Methanol and Sodium Methoxide used in the manufacture of such biodiesel subject to actual user condition for a period upto 31.03.2016. Notification No.42/2015­ Central Excise, dated 19.10.2015 may be referred to in this regard.

-- CA Kasliwal Ambar

New Reward Scheme to catch Duty Evasion

The Government has framed a system of rewards for people who help in the detection of the tax evasion. The following are a few guidelines for the people who like to help detection of Central Excise Duty evasion/frauds:


Under the existing Reward Scheme, Government of India grants handsome rewards to informers who provide specific information leading to seizure of goods, currency, bullion or leads to detection of duty evasion including wrong declaration of quantity, description, value etc.

The information should contain details of modus operandi being adopted by the tax evader. Details like name & address of the firm, addresses of the key persons, place where records of clandestine clearances are secreted, details of flow of illegal funds are considered important piece of information.

Your name and identity will be kept absolutely confidential.

- CA Kasliwal Ambar

Maharashtra Govt. decides to hike Stamp Duty

The Maharashtra government has decided to allow a 1 per cent increase in stamp duty on property transactions, which will increase overall costs for home buyers in Mumbai, the country’s most expensive real estate market.

The Cabinet had on Tuesday approved a proposal for the increase in stamp duty on property transactions to fund major transportation projects such as the Metro and Monorail corridors. With this, the stamp duty in Mumbai will go up to 6 per cent although senior officials in the revenue department admitted that the Centre had issued guidelines urging states to cap stamp duty on property transactions at 5 per cent. The new rate will come into effect once the government issues a notification.

Senior officials also confirmed that the state government was actively considering a move to levy cess on Transferrable Development Rights (TDR) certificates as means to raise additional revenue. With increased revenue expenditure and revenue collection below par worsening the state’s overall financial position, the finance department is pushing for the move, sources confirmed.

CA Kasliwal Ambar