19 Sep 2023

The KMC is set to increase property tax rates for residential buildings and flats due to a recent revision of unit area values under the Unit Area Assessment scheme. Approximately 35 percent of taxpayers have already transitioned to the UAA system. The mayor-in-council has approved the revision, which will affect nearly 9 lakh property owners. The KMC's initial proposal for steep tax hikes was reconsidered at the request of the state government. The revised rates will be discussed at an upcoming KMC house meeting. The changes aim to establish equitable and sustainable property tax policies while providing relief to refugee rehabilitation zones.Read more

18 Sep 2023

Mumbai is experiencing a surge in cooperative housing society (CHS) redevelopment projects, but complex Goods and Services Tax (GST) issues are leading to legal disputes. CHS redevelopment involves transferring development rights to a builder, who provides new flats to members in exchange for their old ones. However, GST complexities add to project costs. GST is levied on the transfer of development rights and during construction, impacting the project's viability. Developers are also liable for GST on new flats provided to CHS members, which is calculated on the market value, effectively resulting in double taxation. Calls are being made to simplify the GST mechanism for these projects.Read more

18 Sep 2023

The Organisation for Economic Cooperation and Development (OECD) has proposed measures to enhance tax transparency and combat tax evasion and money laundering related to offshore real estate holdings. These proposals, presented to G20 leaders at the New Delhi summit, aim to establish real-time data sharing among national authorities. The OECD suggests both traditional data-sharing models and a novel "direct access-based model" that relies on interconnected digital ownership registers. This initiative is seen as a crucial tool for ensuring tax compliance and addressing the lack of visibility into residents' foreign real estate holdings by tax authorities. Implementing these measures will enhance global tax transparency and potentially influence investor behaviour regarding offshore real estate assets.Read more

18 Sep 2023

The Reserve Bank of India (RBI) has issued a directive to financial institutions, including banks, housing finance firms, and others, to ensure the timely release of property documents to borrowers. These institutions are now required to return all original movable and immovable property documents to borrowers within 30 days of complete loan repayment. The RBI's move aims to standardize practices and reduce customer grievances related to the release of property documents. Borrowers will have the flexibility to choose where to collect their documents, and clear procedures will be established for handling document release in case of a borrower's death. Penalties will be imposed for delays or losses of documents, ensuring accountability. The directive will be effective from December 1, 2023.Read more

18 Sep 2023

Indian real estate firm Signature Global has reduced the size of its initial public offering (IPO) from 10 billion rupees to 7.3 billion rupees ($88 million) amid concerns about high borrowing costs. The IPO includes a fresh issue of shares worth 6.03 billion rupees and 1.27 billion rupees worth of shares offered by existing shareholder International Finance Corporation, a World Bank Group member. Signature Global primarily develops residential, commercial, and retail projects in northern Indian cities. The move comes as benchmark index Nifty 50 reaches record highs, driven by both foreign and domestic investments.Read more

18 Sep 2023

HotelYaari, a fractional ownership platform for premium holiday homes and hotel suites, has secured $2.17 million in seed funding from Alios Ventures. The funds will be allocated towards platform development and expanding personnel to meet growing demand. Founded by Janardan Tiwari, the platform enables individuals to invest in luxurious accommodations with as little as Rs 5 lakh, following a concept akin to successful start-ups like Pacasso and Kocomo.Read more

15 Sep 2023

The Madurai City Corporation has significantly improved its ranking in property tax collection, moving from 16th to 11th place among 20 corporations in the state during the first half of the year. Officials report that the monthly average of total tax and non-tax revenue collection has increased from '32 crore in 2022-23 to '38 crore this year, with '138 crore collected by August. Notably, '90 crores have been collected as property tax in the first five months of the financial year, surpassing the previous year's total of '156 crore. The tax incentives and collection drives have contributed to this positive trend.Read more

15 Sep 2023

The Securities and Exchange Board of India (SEBI) has levied a penalty of Rs 21.5 lakh on Reliance Home Finance Ltd (RHFL) and its top executives for non-disclosures and concealing adverse information uncovered in a forensic audit report. The penalty affects RHFL's CEO Ravindra Sudhalkar, CFO Pinkesh Shah, and compliance officer Parul Jain. SEBI found that RHFL failed to disclose deviations in proceeds from debt non-convertible debentures (NCDs) and concealed crucial information, impacting the company's image negatively. Despite RHFL's claims, the forensic audit revealed substantial loans disbursed to potentially indirectly linked entities and deviations from the NCDs' intended use. The penalties imposed range from Rs 2 lakh to Rs 15 lakh.Read more

15 Sep 2023

The Municipal Corporation of the City of Gurgaon (MCG) Taxation Wing has issued a stern warning to a private agency responsible for distributing property tax documents. A complaint alleged that the agency left tax bills on the road instead of delivering them directly to the recipients. The agency had been contracted by the MCG to distribute these documents, but it failed to follow proper procedures, including obtaining acknowledgment from recipients. This oversight has hindered the maintenance of accurate property tax records, impacting property owners and the efficient functioning of the MCG's taxation processes. The MCG is taking corrective measures to rectify these issues.Read more

15 Sep 2023

ASK Property Fund, part of the ASK Group, has invested Rs 225 crore in Pune through its ASK Real Estate Special Opportunities Fund IV. The project primarily consists of residential units, and Kumar Realty is the developer behind the integrated Megapolis township in Hinjewadi. The area's proximity to IT firms and multinationals has fuelled a demand for residential properties, with over 9,000 units sold in the past two years and a 6-8 percent year-on-year price increase. ASK Property Fund has invested in 15 projects in Pune, focusing on mid-segment and affordable housing near job centres.Read more