Advertisements

The Hindu Succession (Amendment) Act, 2005


wealthymattersThis Act was passed to address the inequalities in succession to agricultural land, Mitakshara joint family property, parental dwelling house and certain widow’s rights.

One of the most significant amendments in the Hindu Succession (Amendment) Act, 2005 is the deletion of the gender discriminatory Section 4 (2) of the 1956 HSA. Section 4(2) exempted from the purview of the HSA significant interests in agricultural land, the inheritance of which was subject to the devolution rules specified in State-level tenurial laws.In States where these laws were silent on inheritance, the HSA applied by default, as also where the tenurial laws explicitly mention the HSA. But, in Delhi, Haryana, Himachal Pradesh, Punjab, Jammu and Kashmir and Uttar Pradesh, the tenurial laws specified inheritance rules that were highly gender unequal. Primacy was given to male lineal descendants in the male line of descent and women came very low in the order of heirs.Also, women got only a limited estate and lost the land on remarriage.Moreover, in U.P. and Delhi, a “tenant” is defined so broadly that these inequalities effectively covered all agricultural land. U.P. alone has 1/6 of India’s population. This clause thus negatively affected innumerable women farmers.The 2005 Act brings all agricultural land on par with other property and makes Hindu women’s inheritance rights in land legally equal to men’s across States, overriding any inconsistent State laws. This can benefit millions of women dependent on agriculture for survival. Read more of this post

Advertisements

Kamal Khetan’s Way


wealthymattersIn 2007, when the MMRDA invited bids for its plots in the Bandra-Kurla Complex (BKC), Sunteck was the only company that opted for residential plots – all others bid for plots to build commercial projects.

Here’s how Kemal Khetan explains his action:“My observation was that in any business district, the residential segment always commands premium over commercial, whether it’s Manhattan, Hong Kong or NCPA in Mumbai.” 

One of the BKC plots which he bought for 140 crores in 2007 and converted into a residential project, Signature Island, is valued at 1,000 crores by analysts. He has two more similar projects at BKC, each valued around  700 crores. About 65% of the inventory is already sold – buyers include former Citigroup chief executive Vikram Pandit, industrialist Gautum Adani and investment banker Nimesh Kampani – and the remaining is held by the company as it believes the premium will go higher once the projects are completed.

Kamal Khetan is very smart in land acquisition. His land cost to total sales is one of the lowest among Mumbai realtors.He has never gone for trophy properties but has still managed to create high luxury projects.

Distributing Assets-Gift, Release And Transfer Deeds


wealthymattersOften when a person dies-intestate,the legal heirs have to decide how to mutually distribute the assets of the deceased.Going to court is the least productive way.Negotiation is better and the courts are best approached only in case of a denial of one’s rights.
The following acts may be done to have a property which is  jointly owned by the many heirs transferred in the name of one or few of them:
1) The heirs may execute a gift deed in favour of one or more of them, gifting away their share/interest in the said property inherited by them;
2) The heirs may execute a release deed in favour of one or more of them , releasing their share/interest in the said property, inherited by them .
3) One or more of the heirs may purchase the other’s shares/interest in the said property from the other/others by executing a deed of transfer and on the payment of consideration for the same.
No sale can take place and no deed of transfer can be executed without payment of consideration .Stamp duty is payable on gift deeds, release deeds and deeds of transfer. These documents have to be stamped in accordance with the provisions of the Indian Stamp Act applicable in the state where the property is situated.Further, as laid down in section 17 of the Registration Act, 1908, gift deeds, release deeds and deeds of transfer are all compulsorily registerable documents. Thus, on execution of any of these deeds, they have to be registered with the office of the sub-registrar of assurances within whose sub-district the whole or some portion of the property is situated, within a period of four months from the date of execution of the said document.

5,00,000 Crores?


wealthymattersIn Lutyen’s Delhi alone ,there’re potentially a thousand acres of land occupied by bungalows,MP residences,various offices and quasi-government entities.

An acre-sized bungalow in Lutyens Delhi sells for around Rs 100-150 crore.A thousand acres,even at the low end of the range,is Rs 1,00,000 crore.Slap on a big FSI and the number can go up by ten times.Even conservatively,at half the amount,we arrive at Rs 5,00,ooo crore.

-The back of envelope calculations are by Chetan Bhagat

Arun Bhatia Family


wealthymattersIf you have been following the Air Asia JV in India,you are bound to have come across the company Telestra Tradeplace. If you are curious to read more about the people behind this obscure company,continue reading this post.You will definitely get to know more about how business is actually done.

According to filings with the Registrar of Companies,Telestra Tradeplace was registered in August 2001.It has a paid up capital of Rs 1 lakh and  made a profit of Rs 31.09 lakh in the year ended March 2012 as against Rs 52.9 lakh a year ago. The company has invested around Rs 1.5 crore in Cavim Realty, indicating an interest in the real estate business.As of September 2012, the Bhatia family owns the entire shareholding of the firm. Read more of this post

%d bloggers like this: