Friends,
I am planning to file a PIL in SC regarding regulation of Realty sector not just in NCR but whole of India. I need some numbers for that.
1. What is the latest estimate of black money in India?
2. What proportion of this black money is invested in Realty sector?
3. How many people own more than one house in India (residents and NRIs)?

I would also like someone to suggest any civic minded lawyer who will help me with the filing of PIL for no fees :D /nominal fees;).
I also need your suggestions for PIL on what measures are needed to regualate the realty sector.

Here are my ideas:
1. Tax benefits for only the first house built/purchased by family(not individual) in an urban conglomerate. No benefit for property purchased in name of minors. Eligible age 25 years.
2. A wealth tax on the second house owned in an urban conglomerate. The proceeds of this wealth tax to be utilised to build houses for economically weaker sections and low housing loans for first time purchasers.
3. Common online database of all state Registry department's documents on lands and buildings to be made availble to income tax department of central government.
4. Reduced wealth tax to those who rent out their house as an incentive for renting. Procedures to be established to avoid bogus claims of renting out. Rent agreement to be registed with Registrar. Progressively increasing wealth tax for those houses which are not self occupied or rented out. In order to avoid bogus claims data such as Voter Id Card/tele/credit card/any other bill/recipt has to be cross referred to ascertain where the owner is actually residing.
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  • Originally Posted by kandhan
    Friends,
    I am planning to file a PIL in SC regarding regulation of Realty sector not just in NCR but whole of India. I need some numbers for that.
    1. What is the latest estimate of black money in India?
    2. What proportion of this black money is invested in Realty sector?
    3. How many people own more than one house in India (residents and NRIs)?

    I would also like someone to suggest any civic minded lawyer who will help me with the filing of PIL for no fees :D /nominal fees;).
    I also need your suggestions for PIL on what measures are needed to regualate the realty sector.

    Here are my ideas:
    1. Tax benefits for only the first house built/purchased by family(not individual) in an urban conglomerate. No benefit for property purchased in name of minors. Eligible age 25 years.
    2. A wealth tax on the second house owned in an urban conglomerate. The proceeds of this wealth tax to be utilised to build houses for economically weaker sections and low housing loans for first time purchasers.
    3. Common online database of all state Registry department's documents on lands and buildings to be made availble to income tax department of central government.
    4. Reduced wealth tax to those who rent out their house as an incentive for renting. Procedures to be established to avoid bogus claims of renting out. Rent agreement to be registed with Registrar. Progressively increasing wealth tax for those houses which are not self occupied or rented out. In order to avoid bogus claims data such as Voter Id Card/tele/credit card/any other bill/recipt has to be cross referred to ascertain where the owner is actually residing.


    the judiciary to my knowledge can only enforce or protect a person or public as per the law it cannot or will not direct the government to make or amend laws ,that is the perogative of the parliament.

    anyways i suggest you take a note of previous judgements in such pil's and save yourself the effort. it will be dismissed.

    the judiciary will right any wrong done to anyone but it will never transgress its powers in directing the government on how to rule and what policies to follow.it will not be a democracy then.
    correct me if i'm wrong
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  • Originally Posted by kandhan


    Here are my ideas:
    1. Tax benefits for only the first house built/purchased by family(not individual) in an urban conglomerate. No benefit for property purchased in name of minors. Eligible age 25 years.
    2. A wealth tax on the second house owned in an urban conglomerate. The proceeds of this wealth tax to be utilised to build houses for economically weaker sections and low housing loans for first time purchasers.
    3. Common online database of all state Registry department's documents on lands and buildings to be made availble to income tax department of central government.
    4. Reduced wealth tax to those who rent out their house as an incentive for renting. Procedures to be established to avoid bogus claims of renting out. Rent agreement to be registed with Registrar. Progressively increasing wealth tax for those houses which are not self occupied or rented out. In order to avoid bogus claims data such as Voter Id Card/tele/credit card/any other bill/recipt has to be cross referred to ascertain where the owner is actually residing.


    What is wrong if someone owns more then one house? Correct me if I am wrong, in a democratic society any person who has the means should be allowed to own any number of houses. We should have a liquid market for real estate without restrictions or excessive regulation.

    We were a prosperous agriculatural society during historical times and during british times we were one the richest economies in the world due to agriculture. In 1960s Indira Gandhi and her Communist allies in the name of social revolution imposed restrictions on agricultural land holding, which slowly destroyed productivity and efficiency of Indian Agriculture.

    All these regulations and restrictions only end up destroying free flow of capital and in the end communism has only destroyed nations. In fact China is a capitalistic country; after Mao died, Deng his successor buried communism forever in China.
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  • abk: if you look at judicial activism of the Courts in the recent past you wil notice that in many of these PILs the courts directed to govt. to just do its job which any people sensitive govt. should have done without commands from judiciary. For ex. CNG buses in Delhi, shifting of industries out of delhi, the problem of unplanned growth of unauthorised colonies in Delhi, closing of tanneries in TN which were polluting the water etc.
    POlicy is the prerogative of parliament. But we both know well that in the name of policy formulation, these policticans have been bending the rules in their favour and have taken the country down the drain. The parliamentarians forget their obligation to the constitution the moment they take their oath. The SC has enhanced the scope of judicial review and the scope of PIL and by doing so it has filedl the vacuum of governance created by these corrupt politicians.
    I would also like to point out to you a recent case of SC subjecting the proceedings of parliament to judicial review which has very clearly been prohibited by the Constitution itself. Where there is decline of legitimacy to govern, whoever or whatever instituion provides such legtimacy commands real power and today the judiciary represents that legitimate power.
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  • contra: from your observations I surmise that you support capitalist economy. I am biased towards sot ideas. Since we have basic ideaological differences I disagree with most of what you said.

    There is nothing wrong with owning more than one house. All I am saying is that since land (and hence housing) is a scarce resource it has to be evenly distributed as right to shelter is a fundamental right of a citizen. Not everyone is equal economically.
    Rights in a democratic country are not absolute. They are always relative. Just because someone has the means he/she cannot keep acquiring all the resources for himself. Imagine if the ten richest Indians start buying houses with all their assets. Real estate market today is rife with speculators who only boost up the prices and deal in black money which not only affects the sector but the whole economy.

    As for your comment on agriculture and China, I would have to give a detailed rebuttal which is beyond the scope of this post. All I can say here is that it was wrong implementation of communism and not the idea of communism as such which was unsuccessful. Look at what capitalism and free flow of capital has done for the economy of USA and the world.
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  • Some more suggestions: 1. Properties should be registered at market rates or atleast 80% market rates. Initially this will lead to dwindling of demand as this will directly target the speculators. However, once the rates settle down genuine buyers who really want to posses a home will boost the demand. This will avoid dealings in black money and also will boost Govt. revenue collections. In fact this was suggested long back by many Govt. Committees. Market rates have to reviewed periodically.
    2. An autonomous regulator for realty sector on the lines of IRDA & TRAI.
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  • shubh: Consumer court is not the right fourm to approach for this matter. I have not entered into any contract with any builder. I am just a citizen concerned about the role of black money in real estate and the way black money creating a artificial housing scarcity. A former chairman of Hudco has calculated that it takes only 3% of India's surface area to provide housing for the population of India till 2050!!! So where is the scarcity of land? (Of course we can understand the economics of purchasing power.)
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  • The idea is very original if i can say so.

    1. Regulatory body needs to be appointed to protect the consumers and regulate the building activity.

    2. Black money problems r difficult to estimate. It would be between 300 to 800 % for any propety transactions in TIER II city. Reduce or Increase for rural or Tier I city resptly. It would be better to rationalise the stamp duty and regis tax to increase compliance.

    3. It is not correct to restrict a person to one house. Heavily dis incentiwise vacant house/ land. along with the balancing act of easier tenancy laws.

    4. India is heavily legislated society - rules for everything, but Accountability NIL

    We need to reduce rules by greater transparancy. This can be achieved by computerisation of land records and all property transactions.
    The process has started, hope for better implementation and accountability.
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  • Sorry unable to post.

    Getting msg of duplicate comments.
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  • Originally Posted by kandhan
    shubh: Consumer court is not the right fourm to approach for this matter. I have not entered into any contract with any builder. I am just a citizen concerned about the role of black money in real estate and the way black money creating a artificial housing scarcity. A former chairman of Hudco has calculated that it takes only 3% of India's surface area to provide housing for the population of India till 2050!!! So where is the scarcity of land? (Of course we can understand the economics of purchasing power.)

    scarcity

    the point is it is concentrated only in the 3% and nobody wants to be a robinson crusoe.
    if the vanity and megalomania of people allow them to shun posh places and
    consider a bunglow in rutland gate equal to one in tindivanam then what you say might hold true.

    consider the rate diff
    rutland gate 1gr=3-6 cr
    tindivanam 1 acre = 3-6 L
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  • Scarcity and Ignorance
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  • Scarcity and Ignorance r thy holy cow

    Milch the rivers of mans sweat flow

    Politico/builders r Aam Admis Woe
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  • Sansei: Cud you give specific actions govt can take to disincentivise vacant houses? I have suggested increase in wealth tax and house tax for vacant houses. Also I suggest increased house tax for second and subsequent houses owned by an individual.

    Also, cud some1 suggest a socially minded lawyer (meaning one who does not charge for his service) :)) in Delhi who could help me with drafting the PIL?
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  • Originally Posted by kandhan
    Sansei: Cud you give specific actions govt can take to disincentivise vacant houses? I have suggested increase in wealth tax and house tax for vacant houses. Also I suggest increased house tax for second and subsequent houses owned by an individual.

    Also, cud some1 suggest a socially minded lawyer (meaning one who does not charge for his service) :)) in Delhi who could help me with drafting the PIL?


    'socially minded' and lawyer are antonyms and socially minded lawyer will be the discovery of a new species.:D
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