Thursday, May 16, 2013

AT news on MAHA 1 % CESS ON 'demand (deemed ?) conveyance' as well !

<><>The last comment is found to contain some useful information/news; in fact, has to be regarded as a helpful breather to the hapless victims of the obtaining realities/irregularities in the realty sector; and continuing for too long to be ignored or wished away.
In one’s sincere but perceptive opinion, the route of ‘deemed conveyance’ is a totally misconceived concept; a glaring instance of a remedy prescribed , which in the ultimate analysis,is bound to turn out to be worse than the very evil it is claimed to have been prescribed for. Further, it is an area warranting not just ‘easing’ of the norms but deserving to be given a decent burial once for all.
Instead, ideally speaking,in all fairness and in order to prove their mettle, what the concerned men in governance must do, in the larger interests of the people at the receiving end,is to intelligently and devoutly think of ways and means, and resort to, for an effective implementation and enforcement of the applicable enactments on the statute book; also the other governing rules and regulations in place.
Any other alternative course of action or measure is tantamount to a self-betrayal of courage of conviction supposed or expected of them.
On the requirement of OC, another case on point perforce comes to mind: That is the government’s mindless but shameless resolve to treat, by deeming (for that purpose by tampering with the basic charter itself), a construction contract as a “works contract”; which legally it is not, and subject it to a hefty service tax, in a case where payments are made before the stage of completion and procurement of ‘OC’. Albeit, instead, insistence or acceptance of any payment whatsoever before that stage could as well have been declared illegal by a suitable but simpler legislation. That would have had the inescapable result of enforcing effectively the extant requirement of ‘OC’ that has just remained on paper.

22nd May

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Maharashtra to examine 1% cess on demand conveyance


<The CM has agreed to look into the matter of this additional burden, the collection of which was mandated by the office of the Inspector General of Registration (IGR) of the state.  The office of the IGR has been collecting 1% additional cess by way of stamp duty on the documents registered from April 1, 2013 as per the notification issued by the state government. However the additional cess is being collected under the said notification not only for the new documents registered but also on the conveyance deeds including those documents which are not registered earlier by the old housing societies. The issue has caused severe hardship to owners of flats in old housing societies who wanted to complete the formality of conveyance as encouraged by the state’s law on deemed conveyance.....>

<> This is clearly another fallout problem, unforeseen  but  faced with by the gullible buyers of flats, caught , unawares, in a situation of being compelled to  resort to the newly enacted / found concept/route  of ''Deemed (demand ?) Conveyance’; though for no fault of theirs.
May not be out of context but be worthwhile to mention that, so far as one knows, there has been no thought given to similar or like problems possibly could be expected to arise at the stage of 'final conveyance’; that is, the stage in which the promoter/seller, as envisaged by the law, has to effect the conveyance of the entire property i.e. in the land and building ; and handover  actually lawful physical possession TO the duly formed and registered co-operative housing society of the co-purchasers, put together. The crucial point of concern to be focussed on is that there seems to be no way or route open, without another enactment such as / on same lines as for  'deemed conveyance', to bring about  a final conveyance to/in favour of the housing society.
This, it appears, calls for insightful consideration and usefully incisive deliberation , on a top priority basis, among the property  law experts at large, particularly those advising or holding brief for the buyers seemingly left in the lurch/ truly piquant situation.

Cross Refer >

Everything you wanted to know about LBT
 TOI 2013-05-21 03:06:00

...Traders are up in arms against the state government for implementing the Local Body Tax (LBT) in place of octroi that was main source of revenue for local bodies. Maharashtra is only state to have such a tax. Here's a TOI primer on the vexed tax implemented...

< Octroi, a key revenue source for the civic body, was replaced by LBT on April 1 this

year.* In 2012-13, the civic body had registered revenue of Rs 1,300 crore from octroi. Officials working in the LBT department of the PMC said awareness about LBT was increasing.


Lci (xperts forum)

By ajay sethi on 12/05/2013 11:18:13
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Legal Documents
  • Registration of property - by Krishnachandra
     Sale Deed has been executed and the possession has been received. Now, due to time constraint, the registration of the flat was not done.

    ..wants to sell the flat to Mr. B (who is taking a Bank Loan), but the Promoter is not willing to give the NOC.
Now, my question is whether the law permits the promoter/ builder to refrain from transferring the property in the name of Mr. B, after both Mr. A & Mr. B executes a sale agreement in between them?

Property Law

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