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From: "Architexturez." <admin-in@xxxxxxxxxxxxxxxxx>
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Date: Wed, 31 May 2006 14:14:31 +0530
Some real estate developers get a reality check!
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With property prices rising, these builders are making a killing, while
you struggle to buy that small dream home. The income tax authorities
have just busted this racket after a series of raids. But this deception
begins on the drawing board.
The layouts on paper show small flats of one and two bedrooms - all of
them less than thousand sq feet. The architect gets the drawings
sanctioned by the authorities. But then, brick by brick, the plan on
paper de-constructs itself into a different reality. The one bedroom
flat may suddenly not have a bathroom or the two bedroom flat will be
missing a kitchen.
That’s because the flats will never be sold as a one or two bedrooms.
The builder couples them together, wanting to sell them as one massive
apartment - flats that on paper are less than a thousand sq feet. It is
a well crafted strategy to evade tax, that drives this change in plans.
In 2001, the government launched a scheme to promote construction of low
cost housing. Section 80 ib, sub section 10 was introduced for
builders, who undertook projects on an area of not more than 1 acre.
They were entitled to complete tax exemptions on profits made from
selling flats less than a 1000 sq feet in Mumbai and Delhi. Now,
builders get their plans approved, ensuring no flat is over a 1000 sq
feet but once construction begins, a very different layout hits the floor.
cont'd....
http://news.moneycontrol.com/india/news/investigation/homehouse/somerealestatedevelopersgetrealitycheck/market/stocks/article/217390