Real Estate Laws Part 2 , NA Permission When Not Require

While purchasing real estate (land) one important factor to be taken into conideration , is if the land is an agricultural land required for for non agricultural use   collector NA is required, as per section 42 of Maharashtra Land Reenue code 1966.

Collectors permission for NA use:- A land may be used for agriculture or for any non agricultural purpose.  Where land is  held for the purpose of agriculture , it cannot be used for non agricultural purpose without collector’s permission.

What are the different NA purpose?

1) Residential NA

Erecting any building  which is not farm buiding(section 41 ), but there is restriction on the construction of farm building on specific vicinity of Municipal Corporation and Municipalities.

2) Industrial purpose (sec 67)

3) Commercial purpose (sec 67)

4) any other purpose. (sec 57) (right of way to relinquished land)

Section 44 – Change of  NA purpose from one purpose to another permission of collector required. 

When is Collector NA not required under the Maharashtra land revenue code?

As per Section 44 A-. No permission required from collector for bona fide Industrial use of land which is situated in industrial Zone.

As a part of industrial policy, section-44A of the Maharashtra Land Revenue Code 1966 (MLR Code) has been amended by Maharashtra Act No.26 of 1994 so as to provide that no permission of Collector under section 42 and 44 of the said MLR Code shall be required for the conversion of use of the land for bonafide industrial use, if the land in question is situated within the industrial zone, the activities to be considered as ‘bonafide industrial use’ have been incorporated in explanation to section 44-A.

In the year 1999, Govt. of Maharashtra declared the New Tourism Policy in which ‘Tourism’ is assigned the “status of Industry”. In order to extend all benefits of the New Industrial Policy of 1993 to the tourism industries in the state, the Government considered it expedient to include tourism activities within the areas notified by the State Government as the Tourist place or hill station, in expression “bonafide industrial use” and for that purpose by Maharashtra Ordinance No.IV of 2004 suitably amended the explanation to the said section 44-A with retrospective effect from 1st July 2000. Further, Section-44A suitably amended by Maharashtra Act No.26 of 2005 w.e.f. from 6th March 2004.

New industrial Policy for the state was introduced in 1993.under the policy, certain provisions were made so as to facilitate development of certain areas and for important sectors like Finance and Industry. Under the policy ,areas earmarked in the State Govt for building financial sector /complex near Bandra are (Mumbai) ,relaxation in penalty for conversion of land for bonafide industrial use and also for levy of conversion tax.

Bonafide Industrial use of land means:-

1) Activity of manufacture

2) preservation or processing of goods

3) Handicraft industry.

4) Industrial business or enterprise.

5) Construction of industrial building used for manufacturing process or purpose.

6) Power project

Ancillary industrial usages:

a)Research and Development

b) godowns ,canteens,

c) office building of the industry concerned

d) providing housing accommodation to the workers of the industry concerned.

e) constructing industrial estate including cooperative industrial estate ,service industry, cottage industry, gramodyog units or gramodyog vasahats.

 

Indian Union Budget 2013-14 Highlights

The finance minister of India, Palaniappan Chidambaram, presented the country’s 82^ndUnion Budget today. India is facing one of the slowest growth periods in recent times and the budget hopes to re-ignite growth through higher spending and taxation.

Chidambaram blamed high fiscal deficit, tight monetary policy and low savings behind recent slow growth of the country. India’s potential growth rate is 8%, but the Reserve Bank of India has pegged it at 5.5% for the 2013 fiscal year. Controlling inflation and deficit are the main concerns.

The current account deficits are planned to be overcome through Foreign Direct Investment (FDI), Foreign Institutional Investors (FII) or external borrowings. Foreign investment is the key for driving growth, the FM said. Deficits increased when exports witnessed a slow down and a large dependence on oil, coal and gold. Current fiscal deficit is at 5.5% and the plan is to bring it down to 4.8%.

The budget expenditure is Rs 16,65,297 crores. In the midst of a major modernization drive, the Defence Ministry got a 14 per cent hike in its budget as the FM gave it Rs 2,03,672 crore for 2013-14 with a promise to provide any additional fund required for national security.

Infrastructure

3,000 kilometers of road projects will be enabled in the first six months of 2013. A regulatory sector for roads will be introduced. There will be two new major ports in Andhra Pradesh and West Bengal. 5 million tons Dabhol LNG import terminal to operate at full capacity in 2013-14. Seven new cities are being identified along Delhi – Mumbai Corridor.

Health and Sustainable Energy

Rs. 1,106 cr to be allocated for alternative medicine industry. Rs 4,727 cr for medical education and research. Indian Institute of Biotechnology will be set up at Ranchi. Rs. 800 cr to promote wind energy. Low interest funds to be provided for promoting clean energy. Schemes will be evolved for cities to convert waste to energy. Rs. 37,000 cr will be distributed for healthcare.

Tribal and Scheduled Castes

There are ample schemes and funds in the budget for the most vulnerable in society like tribal, women and the youth. Rs. 3,511 cr have been allotted to the Ministry of Minorities. Thousands of scholarships will be awarded to students from backward communities. Ministry of Rural Development will be given Rs. 80,195 cr. Rs. 41,561 cr will be assigned for Scheduled Castes sub plan and Rs. 24,598 cr for tribal sub plan.

Women and Children

Rs. 1000 cr will be allocated for improving safety of women. An additional sum of Rs. 200 cr will be given to Women and Child Welfare Ministry to address issues of vulnerable women. Rs. 17,700 cr to be assigned for Integrated Child Development Scheme (ICDS). India’s first public sector women’s bank gets Rs. 1,000 cr investment and is expected to start by October.

Investment

Stock exchanges will begin dedicated debt segment. FIIs will be allowed to deal in currency derivative segment. Small and medium companies to be allowed to list on MSME exchanges without public offering. Semiconductor industry will no longer be required to pay customs duty on purchase of plants and machinery. There will be no excise duty for hand-made carpets of choir and jute.

Banks and Insurance

Banks can now act as insurance brokers and are allowed to sell insurance. Rs. 14,000 cr capital infusion into public sector banks in 2013-14, says FM. All regional rural banks and co-operative banks to be e-linked by the year-end.

Income and other Particulars

No change in slab rates for personal income tax. No change in direct tax rates from previous year. Tax credit of Rs. 2,000 for everyone in Rs. 2-5 lakhs salary slab. Surcharge of 10% for the super rich (annual taxable income of Rs. 1 crore). 10% surcharge on companies with income over Rs. 10 cr.

Cigarette duty increased by 18%. Excise duty on SUVs increased by 27%. Silver excise duty increase by 4%. Duty free limit for gold increased to Rs. 50,000 for men and Rs. 1,00,000 for women.

Individuals taking their first home loan of up to Rs. 25 lakhs to get extra interest deduction of up to Rs. 1 lakh.

Restaurants will get more expensive. There will be 6% percent duty on phones that cost more than Rs. 2,000. And custom duty on luxury cars will be 100%.

The previously neglected eastern Indian states will get Rs.1,000 cr for agricultural purposes.

New taxes will collect Rs. 18,000 cr for government. 839 FM radio channels are expected to be auctioned in FY14. The FM said, “Doing business in India must be seen as easy and friendly.” At the conclusion of his budget speech in the Lok Sabha today, Chidambaram said India is the tenth largest economy in the world. He said, “we can become the eighth, or perhaps the seventh, largest by 2017. By 2025, we could become a five trillion dollar economy”. Quoting Swami Vivekananda he said, “All the strength and succor you want is within yourself. Therefore, make your own future.” The General Budget 2013-14 is a resolute step towards that future, he added.

Budget 2013 India: Govt to follow global practices to define FDI, FII

Seeking to end ambiguity, the government today proposed to follow the international practice with regard to definingforeign direct investment (FDI) and foreign institutional investors (FII).

“In order to remove the ambiguity that prevails on what is FDI and what is FII, I propose to follow the international practice and lay down a broad principle,” Finance Minister P Chidambaram today said in his Budgetary proposals.

He said that “where an investor has a stake of 10 percent or less in a company, it will be treated as FII and, where an investor has a stake of more than 10 percent, it will be treated as FDI”.

The minister said that a committee would be constituted to examine the application of the principle and to work out the details expeditiously.

India’s foreign direct investment inflows declined nearly 19 per cent to USD 1.10 billion in December 2012 due to global economic uncertainties.

For the April-December period of 2012-13, the inflows have declined by about 42 per cent to USD 16.94 billion. Sectors which received large FDI inflows during the nine months of the current fiscal include services, hotel and tourism, metallurgical, construction and automobiles. India received maximum FDI from Mauritius, followed by Japan, Singapore, the Netherlands and the UK.

FIIs infused a net amount of USD 4.31 billion (about Rs 23,035 crore) in Indian equities in February so far, taking the total for the year to USD 8.4 billion (Rs 45,094 crore).