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Increasing number of places are being paved, built up, and having roads constructed on them. This prevents water from infiltrating into the ground which could be described as ‘crusting’ at the top.

RECHARGING THE BOREWELLS

It is through cracks in the hard rock almost 100 feet below water is drawn to the surface through borewells. Some very deep borewells exist in Bangalore. In order to lift the water from such a depth, more energy is required.

There are two plain methods of recharging the borewells. One is the surface spreading technique in which water is accumulated in tanks or ponds or lakes and this slowly infiltrates into underground where it finally reaches the borewells. Another method is knows as the point recharge technique and it is more useful for apartments and individual homes. Rooftop rainwater or surface water is accumulated and made to sink-in near the borewell through recharged wells. Perforations are sometimes made in the casing of the borewell so that the water gets into the casing to reach the cracks from where water is being drawn.

If there happen to be non-functioning borewell in any individual home, buildings, industries, institutions and apartments they must be recharged. A deed borewell should never be closed but it should be used as a recharge structure. Only through this and through using water judiciously can a borewell’s life be extended.

Rooftop rainwater has the least likelihood of being contaminated so it is preferable to recharge a borewell with this kind of water. It is also a good practice to recharge all borewells which had an abundant yield earlier but are now yielding less or those which had some yield but have now run dry. There is no need to recharge a borewell which is already yielding well.

If you have a yielding borewell it is a good idea and also safer to make a recharge well which has a diameter of about 3 feet and is of 20 feet depth a few feet away from the borewell so that rooftop rainwater percolates into the recharged well.

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c. Contracting for public and private loans and negotiating and issuing the same.

MAIN BUSINESS OF THE BANKS

BUSINESS OF BANKING COMPANIES :

(a)Section 6 of the Banking Regulation Act provides for the form of business in which banking companies may engage. The relevant provisions of the Banking Regulation Act 1949 read as under:

(b) “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise, and withdrawable by cheque, draft order or otherwise.

Explanation- Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transfer the business of banking within the meaning of this clause:

Section 6 deals with the form of business in which banking companies may engage – (1) In addition to the business of banking, a banking company may engage in any one or more of the following forms of business, namely:-

a. The borrowing, raising, or taking up of money; the lending or advancing of money either upon or without security; the drawing making, accepting discounting, buying, selling, collecting and dealing, in bills of exchange, Hoondeeds, promissory notes, coupons, drafts bills of lading, railway receipts warrants, debentures, certificates, scrips and other instruments, and securities whether transferable or negotiable or not; the granting and issuing of letters of credit, traveller’s cheques and circular notes; the buying selling and dealing in bullion and species the buying and selling of foreign exchange including foreign bank notes; the acquiring, holding, issuing on commission, under writing and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities and investments of all kinds; the purchasing and selling of bonds, scrips or other forms of securities on behalf of constituents or others, the negotiating of loans and advances; the receiving of all kinds of bonds, scrips or valuables on deposit or for safe custody or otherwise; the providing of safe deposit vaults; the collecting and transmitting of money and securities;

b. Acting as agents for any government or local authority or any other person or persons; the carrying on of agency business of any description including the clearing and forwarding of goods, giving of receipts and discharges and otherwise acting as an attorney on behalf of customers, but excluding the business of a managing agent or security and treasurer of a company.

d. The effecting, insuring, guaranteeing, underwriting, participating in managing and carrying out of any issue, public or private, or State, municipal or other loans or of shares, stock, debentures or debentures stock of any company, corporation or association and the lending of money for the purpose of any such issue.

e. Carrying on and transacting every kind of guarantee and indemnity business;

f. Managing, selling and realizing any property which may come in to the possession of the company in satisfaction of any of its claims;

g. Acquiring and holding and generally dealing with any property or any right, title or interest in any such property which may form the security or part of the security for any loans or advances or which may be connected with any such security.

h. Undertaking and executing trusts;

i. Undertaking the administration estates as executor, trustee or otherwise.

j. Establishing and supporting or aiding in the establishment and support of associations, institutions, funds, trusts and convenience calculated on benefit employees or ex-employees of the company or the dependents or connections so such persons; granting pensions and allowances and making payments towards insurance subscribing to or guaranteeing money for charitable or benevolent objects or for any exhibition or for any public general or useful object;

k. The acquisition, construction, maintenance and alteration of any building or works necessary or convenient for the purposes of the company

l. Selling, improving, managing, developing, exchanging, leasing mortgaging, disposing of or turning in to account for otherwise dealing with all or any part of the property and rights of the company.

m. Acquiring and under taking the whole or any part of the business of any person or company, when such business is of a nature enumerated or described in this sub-section;

n. Doing all such other things as are incidental or conducive to the promotion or advancement of the business of the company.

o. Any other form of business which the Central Government may, by notification in the official Gazette, specify as a form of business in which it is lawful for a banking company to engage.

(2) No banking company shall engage in any form of business other than those referred to in sub section (1).

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HISTORY OF BANKING LAW IN INDIA

THE RISE OF JOINT SOTCK BANKS IN INDIA

Agency Houses – started with the beginning of the occidental banking in India. The Calcutta Agency Houses, the trading firms, which undertook banking operations for the benefit of their constituents. Prominent among these were Messrs Alexander & Co., and Messrs Fergusson & Co. Both firms combined banking with other kind of business, and both were the predecessors of the early joint-stock banks in India. The Bank Hindustan, a mere appendage of the former, was the earliest bank started under European directions in India.

The Presidency Banks – The Indian Government did not awaken to the great need for banks in India till 1809, the year in which the Bank of Bengal obtained its charter with a capital of Rs. 50 Lakhs, one fifth of which was contributed by the Government, who shared in the privilege of voting and direction. The charter restricted the Bank’s rate of interest to a maximum of 12 per cent. The power of note issue, however, was not given to the Bank till 1823. In 1839, the bank was given the power to open branches and to deal in inland exchange. The two other Presidency banks viz., the Bank of Bombay and the Bank of Madras were established in 1840 and 1843 respectively. The former had a share capital of Rs. 52,25,000/- and the later Rs. 30 Lakhs, the Government subscribing Rs. 3 Lakhs in each case. As the notes issued by the Presidency Banks didn’t become popular, they were replaced by Government paper money in 1862.

The Swadeshi Movement: – Its impetus for starting new Banks – Thanks to the Swadeshi movement, which prompted Indians to start many new institutions, the number of joint- stock banks increased remarkably during the boom of 1906-13. The peoples Bank of India Ltd, the Bank of India Ltd., the Central Bank of India Ltd., Indian Bank Ltd., and the Bank of Baroda Ltd., were started ruing this period. The boom continued till it was overtaken by the crash of 1913-17, the most severe crisis that the Indian joint –stock banks have so far experienced.

The Presidency Banks referred to above, were amalgamated in to the Imperial Bank of India, which was brought in to existence on 27th January 1921, by the Imperial Bank of India Act of 1920. This Act however, gave the Bank no power to issue notes and thus left it without control over currency of the country. But it was allowed to hold Government balance and to manage the Public debt and clearing houses till the establishment of the Reserve Bank of India in 1935. The Reserve Bank of India took over all these functions from the Imperial Bank of India, but the latter was given the privilege of acting as agent of the former in places in which it had no branches. Although the Imperial Bank of India was created by a special act called the Imperial Bank of India act 1920, the liability of its share holders, like that of share holders of any other bank registered under the Indian Companies act, was limited. The only difference was that the word “ limited’ did not form a part of its name, as it does in the case of banks constituted under the latter Act. With the passing of the state Bank of India act 1955, the under taking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. It has the largest number of branches all over India, and does considerable business in commercial banking like other banks. It was mainly for this reason that this bank was no converted in to a Central banking institution of the Country.

Pursuant to the provisions of the State Bank of India (Subsidiary Banks) act, 1959, the Bank of Bikaner, the Bank of Indore, the Ban of Jaipur, The Bank of Mysore, the Bank of Patiala, the Travancore Bank, the State Bank of Hyderabad and the State Bank of Saurashtra have been constituted as subsidiaries of the State Bank of India. This has extended the area of operation of the State Bank of India.

Establishment of the Reserve Bank of India. – Although suggestions have been made from time to time that India ought to have a Central Bank, they did not take definite shape until 1926, when the Royal Commission on Indian Currency and Finance recommended that a Central Bank should be started in India so as to perfect her credit and currency organization.The proposal assured importance and a fresh bill was accordingly introduced by Sir George Schuster in September, 1933. It was enacted in due course, and became law on the 6th March 1934 and the Reserve bank of India started functioning with effect from 1st April. 1935. The Reserve Bank of India made determined efforts to place the banking and monetary structure of the country on a sound basis, either through advice or persuasion or through a well devised system of inspection of bank.

PASSING OF BANKING ACT – The Banking Companies act, 1949, was passed to consolidate and amend the law relating to banking companies. The need for this was felt owing partly to the abuse of powers by persons controlling some banks and the absence of measurers for safeguarding the interest of depositors of banking companies in particular and partly to the economic interests of the country in general. With effect from 1.3.1966 the name of the act has been changed to the Banking Regulation Act 1949 (10 of 1949).

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A HOME ON LAP OF NATURE

It is a common misconception prevailing in the minds of builder and owners that the more exotic the materials are used for construction, the more attractive and longer lasting the structures would remain. Even when the locally available materials are used, the built structures will display the strength and long endurable vitality. They could easily withstand climatic extremities of that particular region and the building also looks perfectly coalesced one with the surrounding ambience.

It is quite common to find sea facing buildings showing signs of premature ageing, the window frames corroded, walls darkened, the paint peeling off because of the high levels of salt content. Climate has a very important role to play in the maintenance of buildings. The type of materials used, the method of construction opted shall determine the health of a building.

Local materials like sand and stone are normally structured to suit the climate conditions of the place. Hence, when buildings are constructed using locally available materials, invariably the structures display the strength to withstand the extremes of climate in that particular region. In such cases, climatic erosion of building will be very least.

The type of architecture of a place too reflects an adherene to this climatic factors asbuildings have to be naturally adapted to tackle extremes of climate in the absence of artificial means of support. Thus a cold place would reflect more or wood based structures to retain the warmth, a more tropical climate would display high ceilings to eliminate the circulation of hot air.

Currently buildings use materials as well as designs that are based more on styles suited to taste than to the local climate. For instance, the typical Kerala architecture encompasses slopping roofs and wide corridors to tackle the heavy rains. However, the modern structures do not display such conformity with local requirements.

Similarly, the stones used in some of the old buildings in Mumbai have withstood the test of time as well as climate. The same cannot be said of the more current buildings where locally available materials have not been used. Again, the locally available laterite stones in Mangalore are best suited to tackle the heavy rains and the sea in the coastal belt, but how many local buildings use it, is a totally different question.

To avoid such mismatch and the resulting problems, it is best to go in for structures that are inherently suited to local climatic conditions. However, there are materials like steel which every modern building cannot dispense with irrespective of its location. While steel does not get corroded easily, it is important to go in for the right type of steel which is treated for anti corrosive properties to be used in coastal areas, as otherwise it can prove to be risky for the buildings. Similarly, non-ferrous materials like aluminium, polymer and wood should be used in coastal areas to prevent rusting. Wood, when seasoned well, can withstand the worst of climates. Of course the wood used here should be stable wood.

Hollow bricks or terra-cotta blocks are a good option for a hot place as the hollow space aids in keeping the structure cool contrary to popular belief, these blocks are strong, they don’t need to be plastered and what is more, these blocks don’t chip. The Mangalore clay tiles are also very effecting in keeping out the heat and hence highly suited for hot regions. Stones are a good option in hot places as well as coastal regions. Stones, besides keeping out the heat, need low maintenance. They are capable of withstanding extremes of climate.

Traditionally buildings were structures in such a way that the main wall or entrance was away from direct sunlight. This way, the interiors remained cooler. The thickness of the walls too ensured minimal transfer of heat. However, with structures now sporting thinner walls and the building conforming more to the façade than the direction of the sun, it is not surprising to find less naturally cool interiors.

Modern building also sport more of glass walls than brick structures. If these glass walls face the South or West, the building is sure to heat up. The situation is worse if glass walls face south west as the maximum heat is from this direction. Bricks, terracotta tiles and stones are best suited to insulate the building from heat.

Another factor that leads to overhealing of interiors is the absence of sunshades for windows. Traditional buildings not only used less of glass but the windows too sported wooden doors protected by sunshades. These sunshades not only acted as shields from the sun but also kept out the rain. These recessed windows were marvelous protectors from the harsh climate.

While it is best to use locally available materials and conform to local architecture to reap the maximum benefit in terms of climate tolerance, it is not feasible to do so at all times as other factors such as lifestyle, the use the building is to be put to have a say in the design. It is then best to compromise in a manner that the building continues to be climate friendly albeit the modern design and this compromise can be achieved by opting for local materials wherever possible and arriving at a design that is sensitive to local conditions.

Windows now-a-days perform multifashion functions. Their basic shapes have changed considerably, breaking the conventional usage and encompassing all the sides and also on the ceilings towards the clouds sky and nature. From angles to arches, skylights to sliding glass doors, the window accessories cover virtually every size, shape and type of window. Naturally some materials are more flexible than others, so one has to make sure that any fusion of modern fashion appealing to the eye all could accommodate the shape of the window. Immediately after selecting any attractive window shape for the house, one can select from the available innumerable fashions for that shape and operational application. Some skylight systems are manual or motorized lifting systems specifically manufactured for rectangular windows and especially suited for skylights.

Skylights

Skylights are a type of window that is built into the roof that provides a natural light source for a room. A skylight is mounted parallel to the place of the roof and is much more effective at adding natural light to a room than a window is. In most cases, the sole purpose of the skylight is to provide more light, however some skylights also open to provide ventilation. Skylights give your room a beautifully natural look.

Skylights are available in a variety of sizes that will easily integrate your ceiling and roof construction. The increase in natural light can help decrease your over all energy costs. Skylights that open up can also provide ventilation in rooms that may not be well-ventilated.

Skylights must be located where the sun can shine on them directly. A skylight does not produce a useful amount of daylight if it is shades by adjacent structures or foliage. Similarly, skylights are not worthwhile in areas that have heavy cloud cover for a large period of time.

In single-floor buildings, skylights may provide a large fraction of illumination requirements.Sunlight is so intense that skylights can provide virtually any illumination level that is required. These are agencies which specialize in skylights. You can even get them custom fabricated.

Skylights are commonly made from glass, glass composites, plastics and plastic composites. All these materials can be treated to reduce light transmission and cooling load, either by adding dyes that absorb light or by adding a reflective surface. The advantages of glass include unlimited life, high light transmission, hardness and rigidity.

While fixing a skylight, always get edges of skylights sealed very well with silicon to ensure no seepage of rain water. The skylight must have a proper slope and must not be flat, to ensure good drainage of water. Have other large windows in the room and ensure that the room has good ventilation to prevent a heat trap. It is preferable to have skylights in common areas where you don’t spend too much time and not in the bedroom as you won’t have privacy. The glass must be toughened so that it is shatter-proof.

The disadvantage of glass is its vulnerability to breakage, along with the safety hazard that falling glass creates. Glass can be made more resistant to breakage by increasing its thickness, by heat treating it, and by combining it with reinforcing materials. All safety improvements for glass add cost, and they usually add weight. Plastic materials are much lighter in weight, and they are resistant to shattering, so they pose only a minimal safety hazard. If you find the room gets too hot in the afternoon, simply install a set of Venetian blinds or other adjustable window covering over the skylight opening.

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(a) Aggregate limit/s and its distribution among participant Banks/Financial Institutions.

PARI PASSU AGREEMENT

It is very common that an Industrial Company borrows different loans from more than One Bank and/or other Financial Institutions, simultaneously and commonly and a common deed of mortgage is executed by such Company in favour of such financial bodies for mortgaging its assets as a common security for such loans. In such a case the financial bodies also enter into an agreement which regulates their mutual relations as mortgagees.

Leader (Lead Bank/Financial Institution) – Generally one of the financing body is treated as a Leader who is given authority to exercise the powers of the mortgagee contained in the deed or in law.

Such agreement may be incorporated in the deed of mortgage itself or made separately to which the mortgagor Company is also made a consenting or confirming party. By such agreement the rights of the financial bodies are made to rank pari passu that is on equal footing irrespective of the amounts advanced by them. Such agreement is known as PARI PASSU AGREEMENT and is also known as CONSORTIUM AGREEMENT.

Such an agreement is also sometimes entered into when two or more financing bodies advance loans to the same borrower company on different occasions, when the subsequent advancing body insists on its loan being made on pari passu basis with the previous advancing body and to which the latter agrees. In such a case the agreement provides that all the mortgages shall rank pari passu and will be enforceable on that basis and irrespective of their priorities.

Such agreements when separately entered into would require registration under the Registration Act, 1908.

Salient features of a Pari Passu agreement:

1. The Banks/Financial Institutions shall grant accommodation to the Company by way of Cash Credit facility of an amount not exceeding certain aggregate limit; and such aggregate limit shall stand distributed among the Banks/Financial Institutions (percentage or share basis). And at the aggregate limit the respective shares of the Banks/Financial Institutions may be varied from time to time by mutual consent.

2. The Banks/Financial Institutions will open in their respective books separate term loan and/or Cash Credit accounts in the name of the Company irrespective of such term loan and/or Cash Credit facility with each of them and will ensure that drawings out of and payments into each of the said term loan and/or cash credit accounts are regulated by the Company in such a manner that the amounts due from time to time for principal and interest on each of the said term loan and/or cash credit accounts are kept as nearly as practicable pro rata to the respective limits granted by the Banks/Financial Institutions.

(b) Execution of Pari Passu Agreement by the Company in favour of the participant Banks/Financial Institutions.

3. The rights under and in respect of the security created by the Company in favour of the Banks/Financial Institutions by way of mortgage and hypothecation shall rank pari passu in all respects and for all intents and to all purposes inter se the Banks/Financial Institutions and without any preference or priority of one over the other(s). The Banks/Financial Institutions shall stand in the same position without claiming prior rights and divide and appropriate the realization of the security in such shares and such manner as mentioned herein.

4. Except as regards acts, matters and things which may be done by each of the Banks/Financial Institutions including as provided in the said Deed of Mortgage and the Deed of Hypothecation, the Leader will act on its own behalf and on behalf of the other Banks/Financial Institutions in all other acts, matters and things pertaining to and connected with the said accommodation by way of term loan and/or cash credit facility and the security thereof. The other Banks/Financial Institutions hereby authorize the Leader to act as their agent and for and on behalf of each of them to function as such Leading Bank/Financial Institution in respect of all other acts, matters and things pertaining to and connected with the said accommodation by way of cash credit facility and security thereof.

5. Except as regards acts, matters and things which may be done by each of the Banks/Financial Institutions as provided in the said Deed of Mortgage and the Deed of Hypothecation, all rights and powers vested in the Banks/Financial Institutions under the said Deed of Mortgage and the Deed of Hypothecation and under any other arrangements, agreements or otherwise in respect of all other acts, matters and things pertaining to and connected with the said accommodation by way of term loan and/or cash credit facility and security thereof by way of mortgage and hypothecation or otherwise shall be exercised by the Banks/Financial Institutions, through the Leader.Taking possession or realization of outstanding dues through Sale by the participant Banks/Financial Institutions.

6. Without prejudice to the preceding two clauses i.e., 4 and 5 herein above, any one or more of the Banks/Financial Institutions may also take any steps to take possession or realize or enforce the mortgaged and hypothecated security either through the intervention of the Court or otherwise howsoever and in whatever manner it/they may think fit and for that purpose exercise all rights and powers vested in it/them by Law and/or under the said Deed of Mortgage and Deed of Hypothecation and/or under any other arrangements or agreements or otherwise, or may close the term loan and/or cash credit account(s).

Provided that, at the beginning of the working hours of the day immediately preceding any such action intended to be taken by any one or more of the Banks/ Financial Institutions under this clause, due notice of such intention and of the action intended to be taken shall be communicated in writing by such Banks/Financial Institutions to the other Banks/Financial Institutions and the latter or any of them shall immediately, as soon as possible, after the receipt of such notice/intimation, demand repayment of the monies due on the relative term loan and/or cash credit account(s) of the Company with its/them and notify its/their respective intentions in writing either to act jointly in such action with such Banks/Financial Institutions taking the action or otherwise. In the event of the Banks/Financial Institutions agreeing to act jointly in such action then all the Banks/Financial Institutions shall act jointly through the Leader. In the event of failure, neglect or refusal by any one or more of such other Banks/Financial Institutions to join in any such action, the Banks/Financial Institutions taking action shall make the other Banks/Financial Institutions so failing, neglecting or refusing, as party Defendant(s) in any legal proceedings which such Banks/Financial Institutions may take against the Company. The proceeds of any realizations in such legal proceedings shall be available for and be appropriated to the indebtedness of the Company to all the Banks/Financial Institutions due and outstanding under the respective term loan and/or cash credit account(s) with such Banks/Financial Institutions. The failure, neglect or refusal of any of the Banks/Financial Institutions to join in such action shall not affect the rights of such Banks/Financial Institutions so failing, neglecting or refusing in any manner whatsoever vis-a-vis the Company and/or the mortgaged and hypothecated security.

7. In the event of the Banks/Financial Institutions deciding in common to enforce the security and realize the amount due to them respectively, the Leader shall take necessary action, in consultation with the other Banks/Financial Institutions, to enforce the security either by selling the mortgaged property and hypothecated goods by auction sale outside the Court and in exercise of the power contained in the said Deeds or by filing a suit in the proper Court for sale of the said properties and realization of the amounts due to the Banks/Financial Institutions. In the event of taking such action the Leader will be entitled to take possession of the property or to get a receiver appointed thereof through Court and to make all such applications and to take such other action as may be thought proper and in the interest of the Banks/Financial Institutions. The Leader will always keep informed the other Banks/Financial Institutions of such actions and applications and the results thereof. In the event of taking any legal proceeding the same may be taken by the Leader in its own name as Plaintiff and join the other Banks/Financial Institutions as co-plaintiffs or as formal defendants and the Banks/Financial Institutions shall give all co-operation to the Leader in that behalf, as may be required by Law.

8. Subject to the provisions contained in preceding two clauses i.e., 6 and 7 herein above, in the event of the mortgaged and hypothecated security being realized howsoever and in whatever manner, the proceeds of such realization, including monies received from Insurance Companies or otherwise in respect of the security remaining after deducting there from the cost, charges and expenses incidental to such realizations shall in the first instance be appropriate towards or in satisfaction of all indebtedness of the Company due and outstanding to the Banks/Financial Institutions, such indebtedness being the amount outstanding under the term loan and/or cash credit accounts, and the interest due thereon upto the date of realization of the security whether actually debited or not to the said term loan and/or cash credit accounts together with any cost, charges and expenses debitable to the term loan and/or cash credit accounts whether actually debited or not, pro-rata in accordance with the total amount of such indebtedness due and outstanding under and in respect of the said term loan and/or cash credit accounts as aforesaid with each of the Banks/Financial Institutions and thereafter the balance, if any, shall be available for, and be appropriated to the outstanding indebtedness or liabilities of the Company on any account or in any manner to the Banks/Financial Institutions pro-rata in accordance with the total amount of such other outstanding indebtedness or liabilities. And in the event of the net proceeds of realization remaining as aforesaid being insufficient for repayment of whole of the respective amounts due to the Banks/Financial Institutions the same shall be appropriated in liquidation of the indebtedness of the company to the Banks/Financial Institutions as aforesaid pro-rata in accordance with the total amount of such indebtedness and liabilities. Until such appropriation, the monies realized by the Leader or any or more of the Banks/Financial Institutions or by its/their agents, nominees, officers, shall be held by the Leader or any such Banks/Financial Institutions or by its/their agents, nominees or Officers in Trust for all the Banks/Financial Institutions in accordance with their respective rights.

In the event of the net sale proceeds found insufficient to pay of the amounts due to the Banks/Financial Institutions as aforesaid the Banks/Financial Institutions or any of them will be entitled to take separate proceedings to realize the deficit in such way or manner as they or it think fit.

(d) Renewal /Enhancement of limits

9. Where it is desired that an increase in the aggregate term loan and/or cash credit limit shall be made and/or that the shares of the various Banks/Financial Institutions shall be varied, the Company shall be required to apply to the Leader which shall conduct the initial appraisal for the grant or otherwise of such increase in limit or change in the distribution of the limits and shall approve, after consultation with and by the consent of each of the Banks/Financial Institutions of such increased limit, including the distribution of such increased limit or any change in the allocation of the limit among the Banks/Financial Institutions.

(e) Submission of stock statements, financial statements etc., by the Company and arriving at the Drawing Power and its communication, by the Leader of the Consortium:

10. The Company shall be required to send to all the Banks/Financial Institutions simultaneously the stock statements, all financial and other statements, reports, returns, certificates and information and such other periodical data as may be decided upon. The Leader shall work out the drawing power of the Company under the Term loan and/or Cash Credit accounts maintained with each Banks/Financial Institutions and advise as early as possible the other Banks/Financial Institutions of the drawing powers of the Company allocated to each of them.

11. Each of the Banks/Financial Institutions shall advise the other Banks/ Financial Institutions before the 5th working day of each month figures relating to the average drawing, total credit and debit summations and maximum & minimum drawings during the previous month.

12. Each of the Banks/Financial Institutions shall adhere to the drawing powers allocated to them and will not normally permit excess drawings otherwise than with the specific consent of all the Banks/Financial Institutions.

(f) Obtain information from the Company at periodical intervals:

13. The Leader shall from time to time call upon the Company and obtain from the Company

(i) an inventory of upto date hypothecated goods and book debts;

(ii) copies of the early balance sheet and profit & loss account statement of the

Company;

(iii) the names of Directors and any change in the Board of Directors;

(iv) a copy of the annual report of the Company;

(v) a copy of the minutes of the General meetings of the share holders of the

Company;

(vi) Information regarding any suits or legal proceedings taken by or against the

Company;

(vii) such other information as the Leader may think fit and such information and copies of such documents as afore said shall be supplied to the other Banks/

Financial Institutions forthwith.Nothing however will prevent any Bank/Financial Institution from calling for such documents and information from the Company independently but in such case such information and copies of documents shall be passed on by such Bank/Financial Institution to the others of them.

(g) Further loan and Enforcing additional security:

14. Nothing shall prevent any of the Banks/Financial Institutions from enforcing any additional security by way of personal guarantees of the Directors of the Company or otherwise taken in respect of the term loan and/or cash credit facility covered by the Deeds of Mortgage and Hypothecation provided that the moneys realized there from shall be credited to the account of the said term loan or cash credit facility and provi-ded intimation in writing is given by such Banks/Financial Institutions to the others of them.

15. If any of the Banks/Financial Institutions advances any further loan to the Company and obtains further security of the properties comprised in the Deeds of Mortgage and Hypothecation, such Banks/Financial Institutions shall give immediately information thereof to the other Banks/Financial Institutions.

(h) Any change in the terms and conditions of the facilities:

16. None of the Banks/Financial Institutions shall agree to any change in the terms and conditions of the term loan and/or cash credit facility agreed to between such Banks/Financial Institutions and Company without giving at least one weeks prior intimation thereof in writing to the other Banks/Financial Institutions.

(i) Rights and Responsibilities of the Leader:

17. Subject to or without prejudice to what is herein provided, each of the Banks/ Financial Institutions agree that all acts done by the Leader pursuant to the terms of these presents as well as in exercising the powers of the Banks/Financial Institutions as secured creditors under the said Deeds of Mortgage and Hypothecation shall, be deemed to be the acts by or on behalf of all the Banks/Financial Institutions and each of such Bank/Financial Institution agree to ratify the same.

18. The Leader shall undertake to take all necessary steps or actions as and when necessary under the said Deeds of Mortgage and Hypothecation to safeguard the security as well as to call for all necessary information and document from the Company as may be necessary or relevant to the security to keep a watch over the working and business of the Company and to keep the other Banks/Financial Institutions informed about the same from time to time.

19. All inspections of the mortgaged and hypothecated security or of the affairs of the Company will be conducted by a team comprising representatives of the Leader and such other Banks/Financial Institutions as may be determined from time to time in consultation with and by the consent of all the Banks/Financial Institutions.

20. The Leader shall obtain from the Company at the beginning of every quarter of the calendar year an estimate of the aggregate amount that it proposes to draw during that quarter and the Leader shall advise the other Banks/Financial Institutions their pro-rata commitments for the ensuing quarter. It shall be open to each of the Banks/Financial Institutions to levy separate commitment charge at such rate as it may determine from time to time to the Company and any such commitment charge may be debited to the Company’s term loan and/or cash credit account(s) with the Banks/Financial Institutions.

21. The other Banking business of the Company and/or the rights, benefits, obligations and liabilities arising out of such business shall be shared among the Banks /Financial Institutions on a pro-rata basis in relation to the limits allocated to each of the Banks/Financial Institutions. It shall be open to the Company to place such business directly with the Banks/Financial Institutions and the data in this regard shall be exchanged among the Banks/Financial Institutions through the Leader every quarter or at such intervals as may be agreed by and among the Banks/Financial Institutions so that necessary directions could be given by the Leader to the Company with a view to ensuring that each of the Banks/Financial Institutions has an appropriate share in the other banking business of the Company and/or the rights, benefits, obligations and liabilities arising out of such business. Provided, however, that such other banking business of the Company already being handled by any or more of the Banks/Financial Institutions at the commencement of the participation arrangement and/or rights, benefits, obligations and liabilities arising from such business will not be shared with the other Banks/Financial Institutions and all rights, benefits, obligations and liabilities arising out of such business will accrue to or be suffered by the concerned Banks/Financial Institutions transacting such business.

(j) Levy of Service charges by the Leader:

22. The Leader may charge a fee for its service rendered as a Lead Bank/ Financial Institution and such fee shall be determined in consultation with and by the consent of all the Banks/Financial Institutions and such service e fee shall be borne by the Company and shall be debitable to the term loan and/or cash credit account maintained with the Leader. In case it is not possible to recover the service fee from the Company or from security realized, all the Banks/Financial Institutions will share the service fee in the proportion to the limits sanctioned by them and reimburse the Leader with the same.

23. The Leader shall keep the other Banks/Financial Institutions informed of all the major developments relating to the affairs of the Company suitably and, if necessary, by arranging periodical meetings of the representatives of all the Banks/ Financial Institutions being parties hereto to discuss the matters arising out of the said accommodation and take decisions in respect thereof and such meetings may be held with or without an invitation having been sent to the Company for attending the meetings. Also, the other Banks/Financial Institutions or any one or more of them coming to know of any developments relating to the affairs of the Company shall keep the other Banks/Financial Institutions including the Leader informed about the same and the Leader shall in such cases, if necessary arrange special meetings of the Banks/ Financial Institutions.

24. All the monies received by the Leader or any one or more the Banks/Financial Institutions:

(a) by realization of the mortgaged and hypothecated security

(b) from the Insurers in respect of the Insurance of mortgaged and hypothecated security in any other manner from the Company, shall be held by the Leader or such other Banks/Financial Institutions for and on behalf of all the Banks/Financial Institutions and shall be paid and appropriated in the manner and proportion as indicated in these presents.

25. In case any one or more of the Banks/Financial Institutions intend to withdraw from the participating arrangement, the manner in which and the extent to which such withdrawal shall take place shall be discussed and settled between all the Banks/ Financial Institutions.

26. No Banks/Financial Institutions shall without the consent of the other(s) agree to any modification of the terms of the said Deed of mortgage and Deed of Hypothecation nor without like consent grant time or other indulgence to the Company after the mortgaged and hypothecated security has become enforceable or is being enforced.

27. All acts, deeds and things done or purported to be done by the Leader for and on behalf of the Banks/Financial Institutions shall be treated as acts, deeds and things done by all of them and the Banks/Financial Institutions shall ratify and confirm the same and shall indemnify and keep indemnified the Leader in respect thereof.

28. Without prejudice to the generality on the rights, powers and responsibilities of the Leader, it shall be the responsibility of the Leader:

(i) to ensure that all the requirements of Law, necessary for the conduct of the said accommodation by way of the term loan and/or cash credit facility and the creation and continuance of the security thereof are complied with; and

(ii) in case it is necessary to file a suit for any reason whatsoever in the conduct of the said accommodation by way of term loan and/or cash credit facility, to file a suit(s) against the Company on its behalf and on behalf of the Banks/Financial Institutions with the consent of and at the cost of all the Banks/Financial Institutions.

29. The Banks/Financial Institutions other than the Leader shall, if necessary, execute General Power of Attorney in favour of the Leader authorizing the latter to execute all powers and rights given to the Banks/Financial Institutions under the said Deed of Mortgage and Deed of Hypothecation for the protection, enforcement and realization of the security created thereby provided that no such powers or right shall be exercised by the Leader under such power of attorney without the express consent of the other Banks/Financial Institutions and shall not be exercised to the prejudice of the rights of the other Banks/Financial Institutions.

(l) Custody of original documents and Deeds/Agreements:

30. The original Deed of Mortgage and Deed of Hypothecation and all the title deeds relating to the Mortgaged properties handed over by the Company shall remain in the custody of the Leader and the other Banks/Financial Institutions shall be furnished with the true copies thereof for their record. The other Banks/Financial Institutions jointly or separately shall have the right to take inspection of such deeds and title deeds as and when required and to be furnished with copies or extracts there from as and when required.

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While buying dining tables with a wooden top, stay away from the Chinese wood variety which is least durable.

TABLES – SETTING AND DESIGNS

Tables are the most essential additions to any home. Though their main function is functional, their aesthetic appeal could never be thought of lightly. For they are the first to receive the attention of any one stepping into the house. At times plain and at times partly covered or some objects of art placed on them, by any combinations tables look splendidly simple and instantly eye-catching.

Setting them in style:

Every home uses different kinds of furniture in its various rooms. Some of the furniture may require extra care to keep them looking good while others might need some embellishment.While you can place artifacts and accessories on some, others could do with table cloths and table runners. These enhance the look of ordinary table and also the décor around. The choice of the kind of table-cloth depends on the over all décor scheme and the kind of furniture it supports.

Short Tables:

While most side tables are short and have self-designs, you can opt to give them a different look with a table runner. Otherwise, you could even place a shoft flannel cloth on top of the table. If you have a nature or a flower theme, this will go well with a wicker table. You could also opt for silk table cloths. Light coloured ones generally look good with wicker side tables having a glass top. Table cloths in rich colours like plum go well when spread on dark wood tables.

It is easy to decorate centre tables as anything will look good on them. You can have sequined silk and crocheted covers for glass topped ones, flannel, cotton or Persian table runners for marble topped ones, and colourful ethnic ones. They can be selected based on whether you want it to stand out or include colours and materials that are part of the decor in play.
Tables in Wood:

Wooden tables do well with plastic or cotton tablecloths in white or off-white shades. These will look good especially if they have self prints. The stark contrast that white lends to dark wood makes it the focal point in a room with dark wooden furniture.

Table runners can also be in white with some designing. Avoid dark colours as they make the furniture look heavy and also give the appearance of lesser room. For furniture in light coloured wood like teak or oak, you can have crocheted table covers that fall over, in light shades like cream and white.

Tables with glass tops and wood legs could have crocheted wool covers if you have employed an eclectic theme. If it’s contemporary theme, then you can have the thinner one with a crystal vase on top. Tables with elaborate detailing like elephants, dolphins or heavy carving on the legs can have a round crocheted cover. This will give a charming look on the top and the table legs will also be seen. The same kind of cover could be used for a tall cabinet used to keep crockery and cutlery. While the crockery can be displayed with glass fronted shelves, the cover can be allowed to fall over the sides.

Dining Table:

The most unique covers are possible with dining tables. These days, the varieties in table cloths is stunning, ranging from plastic with self prints, laminates, table runners to embroidered and sequined ones.

You can either have a long table, a rectangular one (six seater), or a round table. You could team up table covers either with the table or with the table and the over all decor style. If you have an ethnic décor style like Rajasthani, the table can sport a traditional colourful Rajasthani cotton printed spread. This will go very well with long and rectangular wood tables. A round one should have a big round print in the or plain at the centre and prints along the border. Some table cloths have purposely frayed edges or tassels that lend a striking look to the table.

During parties, round and long tables can be dressed in a complementary manner. If it is a formal get-together, the round tables will be used for seating and the long ones for arranging the food. One option is to cover the round tables with silk table covers in deep colours and the long table in white silk with swathes of gold-coloured cloth in the same material or a different one. Another one is to switch this arrangement so that the focus is on the round table.

Types in Tables:

Home furniture comes in a wide variety ranging from sofas, chairs, divans, ottomans, to beds and tables. The table, in its many shapes and sizes is the most functional of all the furniture. Tables are used for different and varied purposes. Therefore, they require planning and care while deciding on the design and style. The choice of material and the shape of the table are also important. “Teak and laminated wood are evergreen, people always prefer them”.

Varieties:
Tables of various shapes and sizes are designed for specific uses:

Bed-writing table – this is a handy, light weight table specially designed to study or even dine on the bed. It comes in a size of two inches by four inches. Generally, made of rubberwood, it is easy to move around and serves well for informal get-togethers and outdoors.

Coffee table – A coffee table is a low table designed for use in a living room, in front of a sofa, for convenient placement of drinks, books or artifacts. It usually comes in glass, teak wood or a combination of both. You can customize your table with pebbles or even artificial gems.

Centre table – A centre table is generally placed in front of the sofa set and is used for general purposes. You can place a centre table book on it apart from artifacts and decorative vases. These books are large and are designed to be placed on the centre table as a decorative piece. Tables with a glass top finish and ceramic designs are quite popular now-a-days.

Dining table – A dining table is a table designed to be used for normal dining. This table accommodates four to six people around it. At present, the dining tables with glass tops are the trend. A pure six inches by three inches standard wooden table is rarely used due to its high manufacturing and maintenance cost.

Nest of tables – A nest of tables is a table within a table, a sort of nested loop of tables. The latest in the nest of tables are available in both glass and wood.

Console table – A console table is used as a dressing table. This table comes up with a huge mirror on the wall and a large platform for placing cosmetics. It is made using carbon wood and teak.

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CENTRAL GOVERNMENT CLEARS ‘HOUSING SCHEME FOR URBAN POOR’

The Union Cabinet recently gave its approval to the ambitious “Housing for All by 2022” scheme under which people from the low-income group can avail of loans at a much reduced rate of 6.50%. After the approval, the Central Government launched the “Housing for All by 2022” mission to give a major boost to affordable homes for the urban poor and low-income groups. The Cabinet, at a meeting chaired by the Prime Minister, accepted the recommendations of inter-ministerial committee to increase interest subvention to 6.50% on housing loans to beneficiaries of the economically weaker sections, including slum dwellers, and low-income groups. The Urban poor will thus benefit by around Rs.2.3 lakhs each, and their EMI will be reduced by Rs.2,852/- per month.

According to a Senior Official, “at present, with the interest rate of 10.50%, current EMI on admissible loan component of Rs.6 lakh, over 15 year loan duration works out to Rs.6,632 per month. With cabinet deciding on credit-linked subsidy to 6.5%, EMI comes down to Rs.4,050/- per month, thus giving a benefit of Rs.2,582/- per month to the urban poor.”

As a part of the National Urban Housing Mission in urban areas, the government would seek to provide central assistance in the range of Rs.1 lakh to Rs.2.3 lakhs per beneficiary under different component to build 2 crore new houses to meet the housing shortage, over the next 7 years. There are four components to the National Urban Housing Mission.

As for the redevelopment plan of slums with the participation of private developers using land as a resource component, the central government grant would be Rs.1 lakh on an average per beneficiary, while the State/Union Territories are at liberty to use this grant for any slum redevelopment schemes to be taken up to make such projects viable, if required.

Additionally for affordable housing through credit-linked subsidy scheme, an interest subsidy of 6.50% on each housing loan to Economically weaker sections and LIG beneficiaries would be provided by the Central Government. Under third component of affordable housing in partnership with private and public sectors, the Central Government’s assistance of Rs.1.50 lakhs to each beneficiary would be provided to promote housing stock for urban poor with the involvement of private and public sectors, provided 35% of dwelling units of the projects proposed are earmarked for Economically weaker sections category. Lastly, as part of subsidy for individual beneficiary-led construction or enhancement of houses, the Central Government’s assistance of Rs.1.50 lakhs would be provided to each eligible urban poor beneficiary to enable him built his own house or undertake improvements to existing houses.

The Urban Housing Mission will be taken up in all the 4,041 cities and towns. Initially focus would be on 500 cities and towns with a population of one lakh and above each, as they account for about 75% of urban population. 100 such cities will be included in Phase-1 (April 2015 – March 2017) and 200 cities in Phase-2 (April 2017 – March 2019) and the remaining would be covered during 2019-2022.

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This means that persons buying flats in the said project, upon notice, would be doing so at their own risk and their rights would be subject to the outcome of proceedings before the tribunal.

BUILDER TOLD TO KEEP FLAT BUYERS INFORMED ABOUT PENDING CASE

The National Green Tribunal (NGT) has directed Resilience Realty Pvt. Ltd., a subsidiary ofRustomjee Realty to inform prospective buyers of flats at Rustomjee Oriana project at Kala Nagar, in Bandra, that the matter is pending before the tribunal and would be subjected to the final outcome of the litigation.

The order was passed by the Pune Bench of the NGT comprising Justice VR Kingaonkar and Dr. Ajay Deshpande, an expert while hearing a petition filed by a resident Anil V. Tharthare. They observed, “In the mean while, if any third part right or assignment is created hereafter by respondent No.6, then third party be informed that such assignment is subject to the outcome of pendency of present litigation.

Tharthare had approached the NGT challenging the Environment Clearance granted to the pro0ject by the authorities’ concerned. Aditya Pratap, Advocate for Tharthare, argued that among other violations of the development control regulations, 1991.

Senior Counsel Gaurav Joshi representing the developer raised objection regarding the maintainability of the petition and also questioned the locous standi of Tharthare.

The Judges, however, refused to go into the merits of the matter and asked the developer to inform prospective buyer before creating any third party rights. “At this juncture, we do not wish to make any comment on the merits of the matter, in as much as the issues are yet to be thrashed out,” observed the Bench.

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The following are some of the guidelines required to be considered while choosing the location:

PARAMETERS FOR PURCHASE OF PROPERTY

Every person desires to have a house of his/her own according to his or her financial position. It is the emotional bondage towards the house that over weighs than the concrete structure of the house. Normally, a person invests money to acquire immovable property either once or twice. Therefore, the purchaser has to put forth a lot of efforts to get the immovable property with good, clear and marketable title. When once a property in a good locality with marketable title is purchased, he can live peacefully and comfortably in the said property.

It is not easy either to buy a new house/apartment or to construct a house. A person intending to purchase an immovable property either for his occupation or for investment purpose, has to look into various aspects involved in the purchase of an immovable property. If the desire of a person is to buy an apartment, then it is necessary to identify the right location and a reputed builder and if the desire is to construct a house, then a reliable and competent person to undertake the construction work is very necessary.

Selection of location

Before acquiring any property, more impetus should be on the location since it plays a paramount role in almost all aspects of the real estate. However, the process of identifying the location for owning any property depends upon the purpose for which such person intends to invest, which could be either for residential or commercial, since the priorities differ according to the purpose for which the property is intended to be purchased. Selecting a property situated at a convenient and suitable location will result in appreciation of its value and this in turn satisfies you, for having invested in a profitable property.

The location of the property depends upon the purpose for which the property is purchased. In case the property is purchased for self-occupation, a residential locality not far away from the heart of the city is preferable and in case the property is purchased for commercial purpose, it is very important that the property is to be situated in a place which is easily accessible to the public. One should not yield to the pressure created for purchasing a property at a cheaper price. Instead, one should ensure proper verification and examination of documents with extraordinary care. It is advisable to select properties situated in the layouts approved by the competent authorities, which, in turn would enable you to avail all the facilities within the layout. It is also important that the area should have basic facilities and civic amenities to ensure better enjoyment of the property. The infrastructure facilities should be good in all respects. That apart, the size of the plot to suit your pocket and the permitted FAR (Floor Area Ratio) are necessarily to be considered.

The first and foremost thing that should be kept in mind at the time of identifying the property is that the property intended to be purchased should not be located within the close vicinity of a slum area or place of worship or of a drainage line.

• Generally, persons prefer to spend more time in their residences for rest, sleep and family interactions after they return from work. The location for residence should be free from air pollution and noise pollution. Good environments including natural light and good ventilation will be an added advantage from the health point of view. Added to this, an area inhabited by decent, educated and cultured people would be a gifted advantage.

• Civic amenities like park, school, police station, temples, community hall, hospitals, auditorium, should be available in the locality. Better road facilities will save more time to reach the place of work in time, though the location of the residence is little away. Apart from the above, it is also necessary that banking facility, ATMs, public conveyance, public telephone booths, Internet Centers and others are available within the vicinity of the property.

• Availability of water supply, power supply, ground water and sanitary line should be ensured and in case of bore-wells, then good ground water table is also necessary.

It is always good to purchase an apartment built in a layout approved by the competent authority, since it would ensure better amenities to occupants. The location must also be free of any kind of pollution or congestion. If the person wants to own a house or a flat for self occupation, it is advisable to prefer a purely residential area than a commercial one. It is also important that such layout should also comprise of well-laid roads with good sewerage system, along with regular garbage clearance. Care should also be taken to ensure that the location is not very far from the Work Place, Market Place, Educational Institutions, Hospitals, Bus Stand, Railway Station or other basic and important destinations.

For maintaining good health, it is necessary to inculcate the habit of jogging or walking regularly, for which Public Parks or Gardens with jogging track is necessary. Therefore, it is preferable to own a house or a flat wherein such parks or gardens are easily accessible. One thing that always concerns everyone is the parking of vehicle and other logistic issues, which we should ascertain before purchase.

Now, coming to the people residing in the vicinity, emphasis should be on an area inhabited by decent, educated and cultured people with a cosmopolitan outlook, which plays a major role in the personality development of an individual. One has to ensure that the area is not housed with antisocial elements who create social disharmony. In order to avoid noise pollution, it is necessary to verify whether any factory or workshop especially, the ones which work in night-shifts are situated in the immediate neighborhood. To ensure good sleep and less pollution, pick up an area, which is free from any factory or workshop (especially night working) in the precincts of your location. Further, the property located close to highways or heavy traffic areas are better avoided.

Value of the Property

Another important factor to be considered at the time of choosing a property is regarding the resale value. This naturally depends upon the location again. A developing area is preferable than a developed area, since the market value in the developing area is comparatively low and value appreciation is more.

Non-availability of parking space and traffic congestion will have a negative impact on thevalue of the property. Accessibility to the railway/bus stations, airport, star hotels and availability of infrastructural facilities play an important role. The residential area should not be located on the main roads, highways, heavy traffic flow. It should not be near the area of high tension wire. It should be preferably away from the railway line to avoid noise, away from burial ground or cremation center. Besides, the location should not be in any low lying area to avoid water logging and inundation of water in case of torrential rains etc. Also, it should be away from lakes, water tanks, main drains and sewage water storing areas. The land should not be filled up with clay soil and not prone to land-sliding.

Vaastu Aspects

The concept of Vaastu plays an emotional role and solely depends upon the individual’s belief and preference. Belief in Vaastu concept varies from person to person. It is seen that the concept of Vaastu has gained much momentum now a days. It is better to select an immovable property conforming to the Vaastu shastra which may yield good value upon resale. Equally important is the selection of a rectangle or square site and direction wise, it is better to select North and East, as generally people do so. It is suggested that instead of banking upon the Vaastu alone importance may be given to the size of the plot and the Floor Area Ratio along with the price tag.

Financial aspects

The property scene is similar to that of speculative industry; prices can either appreciate or depreciate, though the latter is rare. In fact, it is the difference in the amount of gain in value and the time taken to achieve such appreciation in value which is important. Slow and poor appreciation in value would be almost equal to depreciation while fast and large appreciation can give benefits like any other investment and that too without any effort on the part of the investor. A thorough study of title, location, developments already in the area, the expected development in the area, other facilities already in place and surrounding places and a careful analysis of these factors before purchase can ensure great benefits and greater peace and prosperity to the purchaser.

In the sky-rocketing real estate price both in urban and suburban areas and mushroom growth of apartment culture in and around cities which are being sold at exorbitant price, nowadays, a person may not be able to purchase a good property at a reasonable rate. It is always advisable to select a property to suit his budget, otherwise he will face a lot of problems and the income will go to repayment of the principal and the interest only. Nowadays, Bank finance/loan is easily available for long term i.e., 15 to 20 years subject to fulfilling their terms and conditions. Instead of purchasing 30 x 40′ sitewith Ground + 2 upper floors, a person can purchase 60 ‘ x 40’ site and construct only ground floor with further provisions to construct additional floors suiting to their requirement and budget at later stage.

Instead of purchasing an immovable property in an isolated area, it is better to select it in an area having good road facility and public transport system which would be convenient for up and down traveling to work spot and back home and also helpful for the school going children. If you purchase a property in an isolated area, you are likely to encounter a lot of unforeseen problems.

Choosing a vendor

Conveyance of marketable title in favour of the intending purchaser is also one of the pivotal requirements which decide title of the purchaser over the property. Thus, while selecting a vendor/promoter, you need to undergo thorough investigation about the history of the Vendor or the Promoter and the title over the property. This can be done by scrutinising and verifying origin to trace the title, flow of title and the present status. In the case of Promoter, apart from the above, enquiry should also be made about the earlier projects undertaken by him.

Credibility of the vendor

Presently, the Real Estate is booming due to various factors viz. IT Boom, High salaried people, soaring share prices and the easy availability wide range of home loans. The Builders/promoters are having a field day, as the demand for properties is mounting. That being the situation, it is very important to opt for the purchase of a flat/apartment constructed by reputed Builders, because some builders, having no experience in the field of construction may take undue advantage of the mounting demand and may cause damage to the intending purchasers by making false assurance, with poor result and high prices. We hear a lot of stories about such bogus builders, whose motto is to cheat the people, collect the money and disappear with such money. At the outset, before making any kind of investment either in apartments or plots or in any type of property, it is very necessary to obtain the list of reputed builders who are involved in the real estate business from quite few years. Once such list is available, then it is necessary to make a thorough investigation about the antecedents of the short listed builders. Invest your hard earned money in projects promoted by renowned developers having proven track record. Do not believe the words in the advertisement ‘Financial Institutions approved Projects’

Track record of the vendor

Purchasing a property is time-consuming process involving various factors discussed above. Do not simply believe in a Developer’s project presented in a colorful brochure with glossy photographs and pictures with a lot of promises to be undertaken. It is advisable that before investing your money in flats or in an independent house property, choose a well known builder/developer/promoter and in cases where vendor is an individual, ascertain genuineness of the ownership. Thoroughly check up the track record of the developers and verify successful completion of their earlier projects. Investing in an independent house or flat built by any unknown builder is always a risky act. Before booking a flat, it is necessary to verify the track record of the builder for prompt delivery, construction standards, adhering to the agreed cost without escalation, providing basic amenities. Ensure that the construction is carried out in compliance with the municipal laws without any deviations from the approved plan and also check the post sales service.

Do not depend upon the Developer’s legal opinion obtained from their Advocates and you have to check up documents through your own Advocate.

It is advisable to try and meet the residents residing in the apartments constructed by such Builder.

If an offer to sell a flat/apartment is made for the price which is much lower than the prices prevailing in the market, then it is advisable to think it over than being carried away by the throw away price offer as such purchases may encounter some unknown problems.

The next important aspect after finalizing the builder from whom the property is intended to be purchased, other aspects such as promptness in delivery, construction standards, strict adherence to the agreed costs without any escalation, providing all the basic amenities as promised at the time of booking are important.

Any document substantiating the claims of having obtained BDA’s no objection certificate or approval from the competent authority should be considered only after verification of the genuineness of such documents.

Legal aspects

Buying a property with unclear title is like ‘paying the money and buying headache’. Generally, owner of property with unclear title, either himself or through his agents/brokers offer the property at cheap rate and pester upon the prospective purchaser to buy his property at short notice. It is not advisable to purchase any property in an hurried manner. It is always better to subject all the documents to rigorous scrutiny, verification and seeking expert’s opinion to ensure marketable title of the immovable property. In the process, proper and reasonable time need to be given for legal scrutiny and opinion. Upon such advice by Advocates, further efforts should be made to verify various records in the concerned Government Departments

Origin of Property

The origin of property, continuous flow of the title and present status of the property should be thoroughly checked. Services of an Advocate who is having specialized knowledge and practical experience in the property matters should be utlised. It is advisable to check up history of the property at least for the past 50 years. It is also important to find out existence of minor claims, court litigations, Government acquisition proceeding, Zonal regulations and other subsisting charges on the property.

Before entering into an agreement, the purchaser has to verify all the original documents pertaining to the title deed personally to make sure that immovable property is free from mortgage by deposit of title deeds and other charges created thereon. The deposit of title deed will not be reflected in the Encumbrance certificate.

Public Notice

The purchaser should act according to the advice given by an experienced Advocate. If an Advocate insists on issue of Paper notification in a leading local News paper, the purchaser can do so. However, the Paper notification cannot guarantee any title over the property. If anyone has any objection to the sale transaction, such claims or objections will come to light before sale transaction which may render a great help in taking further decisions. It is the duty of the vendor of a property to settle such claims or objections if any before sale.

Further, a purchaser should make discrete inquiries and verify from the inhabitants of that location and also neighbours about ownership of the property to be purchased. Apart from verification of the main title deeds, scrutiny and verification of the supporting documents like revenue records and other sanctioned plan/licenses etc., would help in ascertaining title of the property.

Safe investment

As far as residential property is concerned, it is safe to invest in those projects which are completed rather than those which are still under-construction.

For those who intend to invest on the property other than residential, for getting steady rental incomes, investment on the ready to occupy properties may be a wise choice. Also, the possibility of capital appreciation would be very great as ready possession property attracts premium market rates. Thus, purchasing an immovable property free from any kind of impediments is a time-consuming affair and it requires selection and involvement of professionals such as Advocate, Architect, Structural Civil Engineers, Contractors and Real Estate Agents.

Tips in brief

1. Scrutinise the documents with an experienced Advocate. Ensure that the documents of title of the property you intend to purchase are clear. Defective title will create problems at any point of time.

2. Always go for a property, which has a resale value.

3. Ensure that the building has been constructed as per the sanctioned plan and if there are deviations they should be within the permissible limit. The property should not be in a low-lying area.

4. You may always rope in the services of a reputed real estate agent and fix his commission well in advance.

5. Purchase the property in a developing area. The value of land will appreciate.

6. If you prefer a ready-to-occupy flat, select a flat which is off the main road on a wide street with adequate water supply, away from cinema hall, marriage hall, open drain, factories and place of worship but not very far from school, college, commercial complex, temple and hospital.

7. If you buy a Flat/Building under construction, visit the work site regularly and see the progress of work.

8. You may not be a Vaastu believer, but purchase House or Flat or land that is Vaastu-friendly from resale point of view.

9. If anyone offers flats/sites at a cheaper rate than the prevailing market rate, there may be certain hidden problems. So you should be extra careful in finalising the deal of such a property.

10. Ensure that the developer has Clearance Certificates from government departments, viz., Electricity Board, Water and Sewerage Board, etc..

11. Commencement Certificate and Occupancy Certificate are other important documents that are necessary while buying the flats.

12. Check up the genuineness of the documents with the concerned authorities in person.

13. Ensure Agreement for Sale and Sale Deed, duly stamped, executed and registered are in your possession. Both should contain fair clauses for both the parties.

14. In case of flat purchase, specification of the building, including material used, difference between the carpet area and the super built-up area are the important factors to decide the rate. Other facilities like Club House, Swimming Pool etc., will also have to be considered.

15. Check up whether there is adequate water supply and sanitary line facility.

16. In case of GPA transaction ensure the validity of GPA.

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