December 5-19, 2010

Tata Housing targets to sell

13,000 homes this fiscal
T
ata Housing Devel- he added. in lending for sometime.
opment Company Asked about the im- Raheja Developers
Ltd said it plans to pact of housing finance Chairman Naveen Rahe-
sell about 13,000 hous- scam on realty sector, ja said the issue has been
ing units, mostly in the he said the banks would blown out of proportion
affordable segment, this tighten the lending pro- and there would be no
fiscal for an estimated re- cess to developers and impact on demand and
alisation value of over Rs might not restructure prices.
2,000 crore. their outstanding debt. In a report on afford-
“We are currently de- “There is a huge loan able housing, RICS has
veloping about 20 pro- overdue to banks from suggested that states
jects across the country. real estate industry. If should formulate hous-
In this fiscal, we are tar- banks do not reset these ing policies on the lines of
geting to sell 12,000 units loans, then developers National Housing Policy.
in the affordable segment might cut prices to sell Pointing out that
and about 1,000 flats in their housing stocks and there is huge shortage of
the premium segment,” meet their repayment 25 million dwelling units,
company’s Managing Di- obligation,” Banerjee it said that private sec-
rector and CEO Brotin opined. tor should be roped in to
Banerjee said on the side- However, Kumar develop affordable houses
lines of a realty confer- Gera, Chairman of apex by providing an enabling
veloped by its subsidiary Bangalore, Pune, Chen-
ence organised by Royal realty body CREDAI, environment and the
Smart Value Homes un- nai and Mumbai.
Institution of Chartered said there would be no right kind of incentives.
der two brands – Subha The company would
Surveyors (RICS). negative impact on hous-
Griha (sub Rs 10 lakh) invest about Rs 1,000
Banerjee said afford- ing prices even as he feels
and New Heaven (Rs 12- crore this fiscal on devel-
able housing is being de- banks would be cautious
30 lakh) – in cities like opment of these projects,
 2
Banks to continue to lend
to realty, housing
Indian expats
on the prowl for
S
tate Bank of India Chairman O P Bhatt said banks will not
stop lending to the real estate and the housing segments be-
cause of the scam unearthed by the CBI.
The real estate and the housing segments are important for the
property
T
economy and, hence, banks will not stop lending (to them), Bhatt
told reporters after a meeting of the Indian Banks Association (IBA) he Indian
in Mumbai. Property show
“Buying a house is a compulsory,
He said what has happened is not a “system-wide issue” as only drew scores of imposed investment. Otherwise,
a few individuals have been arrested. Indian expatriates in the Gulf whatever you earn, you
The bank always monitors the end use of the fund it lends, the over its three-day
SBI Chief said. run as they scooped tend to spend. Investing in a house
`HDFC Bank Managing Director Aditya Puri and ICICI Bank’s up second homes and has a long-term benefit.”
Chief, Chanda Kochhar, both said the scam does not point to any investment proper-
systemic problem. ties in their home
country. almost doubled in Anuj Malik, Un-
Indian nation- value. itech’s Middle East
Awards ceremony for als toured the sales
stands and chatted
He has rented out
the apartment and
sales head, said the
company opened
Architects and designers with developers at plans to buy anoth- a Dubai office four

C
the show, which was er, reasoning that years ago to cater to
entury Plyboards (I) Limited, in association with ITP Pub- at the Dubai Inter- the growth of call the sizeable Indian
lishing Group, felicitated champions of the Indian architec- national Conven- centres will raise population in the
ture and design industry by conferring the maiden Architect tion and Exhibition the demand for new Emirates. The coun-
and Interiors India Aces of Spaces Design Awards 2010. Centre Thursday property in Pune, try has 1.75 million
Over 350 architects and interiors, who received nominations through yesterday, a city of 3.4 million Indian expatriates.
from 50 cities across India like Mumbai, Delhi, Pune, Chandigarh, in their hunt for a that is not far from “Most people in-
Jaipur, Ahmedabad and Surat were adjudged by a distinguished bargain. Mumbai. vest in their home-
jury comprising 30 ace design professionals of the industry here last The event show- “Real estate in In- town,” Mr Malik
weekend. cased a range of de- dia is a good invest- said. “They identify
Sanjay Agarwal, Joint Managing Director, Century Plyboards (I) velopments, from ment option,” said with the geography.
Limited said, ‘’Innovation and Quality are the two key attributes, mid-range apart- Mr Panicker, a busi- They are comfort-
which have the potential to propel growth of the architecture and ments in Indian cit- ness development able with the area.”
the design industry in our country to an elevated level, a key pre- ies such as Nagpur manager who has While there was
requisite in developing an advanced infrastructure. By hosting the and Chennai to lux- lived in the Emirates some demand for
programme, we intend to create an aspiration among the design ury cottages in New for seven years. luxury property, he
professionals, especially among the budding designers to enable Delhi. “Buying a house said the bulk of sales
them in striving towards excellence’’. “People here save is a compulsory, im- were mid-range
Hafeez Contractor received a lifetime achievement award, Span- any extra income for posed investment. properties priced
ish architect Patricia Urquila was awarded in the International investment in In- Otherwise, in the from three to six mil-
hall of fame and Nausheen Jalati was honoured in the Indian hall dia,” said Ali Sura, Gulf whatever you lion rupees.
of fame categories. 32, an Indian busi- earn, you tend to “This is what the
nessman. “These spend. Investing in average salaried ex-

RBI measures to check price rise

NRI [non-resident a house has a long- pat can afford,” Mr
Indian] funds push term benefit.” Malik said. “This
the market at home Training a watch- is what is comfort-

in high-end housing: Unitech higher.”

Mr Sura said In-
dians wanted to in-
ful eye on her two
sons as they darted
around the exhibi-
able from his previ-
ous savings. So he
can leverage him-

I
ndia’s second luxury housing will
largest realty remain under con-
firm Unitech trol given that these
said RBI’s monetary measures will reduce
measures related to the leeway for de-
housing sector will velopers to increase
check speculation prices,” Unitech
and price rise in the Managing Director
high-end properties, Sanjay Chandra told
but will have less im- PTI.
pact in mid-income Chandra, how-
segment. ever, said that there
RBI had recently would be lesser im-
directed banks to pact on the demand
keep more funds of affordable hous-
aside as a cushion ing and mid-income
for advances of Rs segments. “Afford-
75 lakh and above. able and mid-income
It capped housing housing will not be
loans to 80 per cent much impacted”.
of the value of the He noted that the
property. property prices have
“RBI’s measures gone beyond the pre-
will reduce specula- vious highs only in
tive activity in the Mumbai and in some
high-end real estate select high-end de-
segment (above Rs velopments in Gur-
75 lakh). Prices of gaon in the resale
vest in property in
market. their home country
Chandra, how- with the assurance
ever, said that prices that houses there
of Unitech properties would appreciate in
were still below that value.
of 2007 level, but it “I’m looking for
is certainly higher a property that will
than rates during re- give me a good re-
cession. turn on investment,”
On RBI direct- added Mr Sura, who
ing banks not to give has lived in Dubai
home loans more for the past decade
than 80 per cent and owns a home in
of the value of the Mumbai. “A prop-
house, Chandra said: erty with a good de-
“80 per cent cap is veloper is my main
not going to impact criteria.”
genuine demand.” Manoj Panicker,
He pointed out a 37-year-old who
that some low down- lives in Sharjah,
payment schemes has first-hand expe-
have been introduced rience of property
recently in Mumbai. price appreciation.
“RBI probably felt A three-bedroom
that such schemes apartment he bought
could fuel specula- two years ago in
tive demand.” Pune for Rs2.1 mil-
- Bureau Report lion (Dh175,000) has
tion area, Mr Pan- self rather than get
icker’s wife Meena, stuck with a big li-
37, expressed a ability and stretch
concern familiar himself thin.”
to many potential Some develop-
buyers about being ers, such as Reatox
duped by unscrupu- Builders and De-
lous developers. velopers, are offer-
“Sometimes peo- ing affordable hous-
ple are very scared to ing with swimming
put down money in pools and gym facili-
case a project doesn’t ties.
work,” Mrs Panick- Reatox is con-
er said. “Then your structing a develop-
money is stuck.” ment in the central
Perhaps in line city of Nagpur with
with Mrs Panicker’s one-bedroom apart-
views, most visitors ments starting from
milled around well- Rs 2.6 million.
known names at the In a promotion,
exhibition venue. Reatox was offering
Several people a free touch screen
queued at the stall in every kitchen,
of Unitech, a leading with which residents
construction com- could place orders at
pany which sported nearby shops.
banners reading, - Ramola Talwar
“Building dreams
across India”.
3
 4

TATA HOUSING HONOURED

T
ata Housing De- local home grown brands in providing the best in Residential Category at Tata Housing is a
velopment Co.Ltd., in every category , Master class housing projects Bloomberg Asia Pacific comprehensive real es-
India’s leading real Brand Awards were con- to consumers across the property awards. tate developer straddling
estate company, recently ceptualised with a vision spectrum. This award Since the commence- across all consumer seg-
added another feather in to honour the best brands will strengthen our com- ment of operations in ments. The company’s
its cap, when it received across different catego- mitment to create land- 1984, Tata Housing has existing portfolio is more
the prestigious Master ries on both individual mark products across the established itself as one than 40 million square
Brand Award from CMO and brand level. Master country.” Tata Housing of the key players in real feet, all in various stages
Council, USA, and CMO Brand appeals to a very was recently honoured estate development in In- of devel opment. With ex-
Asia at the first ever wide set of consumers with the prestigious Best dia. The company’s pri- isting presence in Mum-
Master Brand Awards in -from premium to mass Developer-Corporate So- mary business is the de- bai, Goa, Chandigarh,
India. The Master Brand and were introduced this cial Responsi bility for velopment of properties Bengaluru, Gurgaon,
award was presented to year by the CMO Council. Shubh Griha (Smart in the residential, com- Pune, Lonavala, Tale-
Tata Housing by Dono- On receiving the pres- Value Homes) at the mercial and retail sectors gaon, Chennai and Kol-
van Neale-May , Execu- tigious award, Brotin Ba- Cityscape Awards -Real with operations spanning kata, the company is in
tive Director, CMO Coun- nerjee, Managing Direc- Estate Asia, 2010, and 5 across various aspects of the process of expanding
cil (USA), on November tor and Chief Executive star and 4 star awards real estate development, its projects to other parts
22, 2010, at the World Officer, Tata Housing, in the Best Development such as land identifica- of India across tier I and r
Brand Congress 2010. said, ``We are extreme- Marketing and Best De- tion and acquisition, pro- II cities.
In tune with the ly honoured to receive velopment for New Ha- ject planning, concep- - Bureau Report
changing phase of the this prestigious award ven and Shubh Griha in tualisation, designing,
Indian brandscape with from the CMO Council. Boisar and the Best Ar- marketing and execution,
a healthy mix of popular Awards like these are a chitecture for Privé Lon- and property manage-
international brands and testimony of our success avala respectively in the ment.

Loan scam: Realty Loan scam fallout:

industry sees no impact Realtors’ FDs may find
on housing prices few takers
R
eal estate developers and
home loan companies are
likely to find it tough to
raise money from retail inves-
tors through corporate fixed de-
posits .
After housing loan scam
broke out last week, investors
have become chary of investing
in corporate deposit schemes
fund raising efforts by them,” he
said.
According to investment ex-
perts, real estate companies will
increasingly be subject to strin-
gent regulatory checks and con-
trols. Another fear, according to
investment experts, is that real
estate companies would be in
dire straits if alternative source

D
emand and prices of prop-
erty are unlikely to de-
cline as a result of the
housing finance scam racket
unearthed by CBI earlier this
week, according to the country’s
top developer DLF and consult-
ant Jones Lang LaSalle.
“Property prices are sub-set
of demand. We do not foresee
any negative impact on demand.
Hence, the prices will not come
down,” Jones Lang LaSalle In-
dia Chairman and Country Head
Anuj Puri told PTI when asked
about the likely impact of hous-
ing finance scam on property de-
mand and prices.
Puri, however, pointed out
that the banks would be more
cautious in lending to develop-
ers, who in turn would have to
depend more on other sources
like private equity for funds.
Echoing similar views, DLF
Group Executive Director Rajeev
Talwar said: “Property demand
depends on the growth of the
economy. Any individual misde-
meanour should not impact the
growth of the real estate sector.”
The views of DLF and JLL
differ from HDFC Chairman
Deepak Parekh who, yesterday,
had said that there could be cor-
rection in property prices as a
fallout of the housing finance
scam.
“Some developers will bring
down the prices and sell... the
unsold stock with developers is
huge across the country. In this
scenario, prices cannot go up def-
initely,” Parekh had said.
On November 24, CBI arrest-
ed LIC Housing Finance CEO
Ramachandran Nair and seven
other top bankers for allegedly
colluding with Mumbai-based
Money Matters in sanctioning
housing loans meant for individ-
uals to corporates.
“There will be repercussions
in terms of increased caution by
banks while lending to develop-
ers. Borrowing will become more
expensive and the process in-
volved in getting it lengthier as
banks increase their vigilance
levels,”
- Bureau Report
launched by realtors, say money
managers. This is despite real
estate companies offering cou-
pon rates close to the maximum
permissible limit of 12.50%.
Deposit schemes of home loan
lenders, which were earlier sold
in large numbers, are also find-
ing few takers, distributors said.
There are about five realty
firms and seven home finance
companies that are currently
raising money from investors —
especially HNIs and the salaried
class. Realtors, like Ansal Hous-
ing & Construction , Ansal
Properties, Jaiprakash Associ-
ates and Unitech are offering
coupon rates in the range of
10.5-12 .50%. Godrej Properties
is said to be offering 8-9 % as in-
terest on deposits.
“Real estate CFDs have seen
a tempering of investor appetite
post the bribes-for-loan scam,”
said Maneesh Kumar, MD, Bur-
geon Wealth Advisors. “Real es-
tate companies have not had an
easy time ever since the melt-
down of 2008 in raising funds.
Recent headlines have further
dampened the already difficult
of funding — like banks, private
equity and mutual funds — dry
up.
Another problem faced by
realtors could be the triggering
of margin calls in the event of
a rapid slide in property prices.
Developers, who have borrowed
money by placing land/ project
as collateral, will have to replen-
ish margins that have fallen due
to correction in overall property
prices. Real estate developers
will be forced to borrow money at
high cost or place more property
as collateral to fill-up the lost
margin, money managers say.
According to invest-
ment experts, real
estate companies
will increasingly be
subject to stringent
regulatory checks
and controls.

LIC scam will rock real estate
C
BI investiga- the scam could lead
tions into the to a cash-flow prob-
multi-crore lem, leading to de-
loan scam, which lays in execution of
has put in the dock projects. Banks will
senior managers become cautious
of LIC Housing Fi- in lending, and in-
nance and several crease rates of inter-
public sector banks, est.
is sending tremors “The need for
across the real estate debt is still very
sector. As more skel- large. The depend-
etons emerge from ence of developers on
closet, experts fear- private equity funds
ing that the scandal and public markets
could lead to a 10-15 will increase, but
per cent correction in then the stock mar-
the market. ket is not likely to
The biggest area be supportive either.
of concern is that With investors look-
these officials have ing for a way out of
been accused of giv- projects, dependence
ing loans to compa- on cash flows ac-
nies in return for cruing out of actual
monetary benefits end-user sales will
from a city based increase,” said Amit
financial services Goenka, National
company, Money Director - Capi-
Matters, said to be tal Transactions,
associated with top Knight Frank India .
real estate firms. This could compel
Experts fear that developers to offer
“soft discounts” to today. I see a 15-20
buyers in the form per cent correction
of reducing floor rise in the next three-
charge or additional six months,” Kapoor
parking space, trans- says.
lating in reduction of While the buyer
costs of about 10%. is in a profitable po-
Pankaj Kapoor, sition, this could also
Managing Director of impact execution of
Liases Foras draws projects. CBI’s reve-
attention to the huge lations have stunned
inventory pile up in buyers but insiders
Mumbai. “There’s say most of the mal-
almost 96 million sq practices exposed
ft of unsold residen- now have been going
tial space in Mumbai on for a while.
5
Some builders are cent interest). “Even
known to get money though the intended
from banks at an uses are most often
interest rate as low very vague, they are
as 11 per cent, even still passed,” said an
though the cost of industry insider.
borrowing project Another malprac-
finance from a lend- tice of inflated valua-
ing institution is tion of land that has
usually between 13- come to light in this
18 per cent. Experts case. “The problem
say intermediaries is that any prop-
hired by companies erty can be sold at
have been arranging any price. A builder
for loans at such low names it and it be-
interest rates by ap- comes the selling
plying for them un- rate, even if actual
der General Purpose transactions hap-
Corporate Loans. pen at a much lower
While on paper rate,” said another
the companies say insider. Since many
they will use the loans are sanctioned
loan to retire suppli- against mortgage of
er’s debt or growth land, in reality it is
purposes, in reality still higher than the
the money is used to actual value of the
buy additional FSI, land, thereby ben-
repay private equity efitting the builder.
obligation and pay - Bureau Report
off interest of private
lenders (who charge
as much as 25 per
6
KP’S DARK MARK OVER LIC!
WHO IS KETAN PAREKH?
Ketan Parekh is a stockbro-
ker who masterminded the
securities scam in 2002. He
was convicted in 2008 for
manipulating and playing
the market, and was subse-
quently barred from trading
in the stock market till 2017.
The LIC scam
Eight people including LIC
housing finance CEO Ram-
chandran Nair were arrested
for their alleged involvement
in a cross-country housing
loan racket. The CBI has
found that several officers
public sector banks and
financial institutions had
received bribes from private
financial services company
for facilitating corporate
loans and other facilities from
financial institutions.
The Other Side
Despite several attempts MiD
DAY was unable to get in
touch with Ketan Parekh. He
did not respond to calls and
SMSes.
When MiD DAY contacted
advocate Mahesh Jethma-
lani, who has represented
Parekh in the past, Jethma-
lani said he was unaware of
any summon to Parekh by
the CBI.
“Which case? I am no
longer his lawyer,” said Jeth-
malani.
Another advocate Pra-
nav Badheka after enquiring
about the case said, “I have
represented him (Parekh)
in an earlier case. I am not
aware of his present cases.”
“Send me the details. I
will inform you if I come to
know of anything,” he added.
B
ig Bull Ketan Parekh,
banned from trading, is
back, and has mastermind-
ed latest scam through an army
of front companies, say the pa-
pers
Days after the sensational ar-
rest of two top LIC officials in a
housing finance scam, a detailed
report from the Intelligence Bu-
reau has revealed the names of
several stockbrokers and realty
companies that colluded to play
the markets.
Ketan Parekh has been
banned from trading till 2017
Based on the IB report, the Cen-
tral Bureau of Investigation
(CBI) is set to investigate the
role of dozens of stockbrokers
who jacked up share prices to sell
them to LIC.
The report has identified Ket-
an Parekh as one of the key play-
ers manipulating the stock pric-
es of key companies in the 2010
Bull Run. He masterminded the
2002 securities scam that rocked
the country.
Sources revealed that the
CBI would soon question Parekh
on his alleged role in the LIC
Housing Finance scam for rig-
ging prices and manipulating the
market.
The IB investigation report,
(copies with MiD DAY), reveals
how a coterie of high-profile
stock brokers through their front
companies were active in various
stocks. The deals run into several
hundred crores.
Floating entities
Parekh and his associates, in col-
lusion with promoters, “manipu-
lated share prices of many scrips
through a web of front entities
and demat accounts,” says the
the scam, CBI sources said.
A senior CBI official said a
team has been dispatched to
Kerala to check Nair’s residence
for more evidence. Officials have
also short-listed few key stock-
brokers, who will be called in for
questioning.
CBI has also identified sev-
eral bank executives who were
working as agents for the stock-
brokers in moving funds for the
company.
Short selling scam
In another report, the IB points
out that Parekh and his associ-
ates were involved in manipulat-
ing stocks of dozens of companies
both in its pre and post listing
stage.
Here the game plan included
pre-listing short selling at Rs
report.
36 in the grey market, to corner
The IB report further adds
shares through multiple retail
that Parekh along with a Kolk-
and HNI segment applications,
ata-based associate, planned to
and sell the shares on the day of
manipulate the initial share sale
the allotment at below Rs 34 lev-
of many companies wherein “car-
els.
tel members would secure 50%
“Anticipating panic selling by
of IPO proceeds from promoters
regular shareholders, the cartel
of unknown and fringe proceeds
members proposed to mop up
after their listings.”
shares and later orchestrate a
The IB also names a Chennai-
hike through circular trading,”
based broking firm in market
according to the report.
manipulation that was patron-
The prices of several real
ised by Parekh and his associ-
estate companies were hiked
ates.
through many subsidiary compa-
nies, in an effort to identify fund
Hiking prices
managers.
Investigations have indicated
The modus operandi of the cartel
that the cartel has been corner-
was to buy shares in a sustained
Parekh and his associates, in
collusion with promoters, “ma-
nipulated share prices of many
scrips through a web of front
entities and demat accounts,”
ing mostly petrochemical and
manner and push the share pric-
real estate companies to make a
es of these companies to a new
quick buck.
high.
It is not surprising the share
The cartel then expects “the
values of the listed real estate
sustained rise in price would at-
companies have slipped down
tract buying from LIC, which
in recent weeks after the CBI
would then take the scrip to
turned the heat on bank officials.
much higher levels”.
Parekh also held long posi-
The CBI has already arrested
tions in real estate stocks and
the investment secretary of LIC,
“proposed to purchase 60 million
Naresh Chopra and LIC Hous-
shares through dry rotation (cir-
ing Finance CEO Ramchandran
cular trading) alternately on the
Nair for allegedly taking bribes
NSE and BSE.”
and giving loans to the compa-
nies.
- Source MidDay
More arrests are expected in
 7

IS IT CURTAINS FOR TN’S SINGLE-

SCREEN THEATRES?
E
ven as blockbust- our operating margins.”
ers like Rajnikant’s However, multiplex
Endhiran rake in owners are have a differ-
crores and multiplex ent take on the issue —
chains splash new screens modernisation and inno-
across the state, Tamil vation cam save the day,
Nadu’s single-screen the- they say. Abhirami Ram-
atres are a dying breed, anathan who owns Abhi-
shutting shop at the rate rami Mega Mall, the first
of three a month. Outdat- multiplex in Chennai,
ed laws, rising real estate says, “In today’s buyers
prices, minimum guar- market, innovation alone
antees demanded by dis- can save exhibitors. What
tributors and movie pi- is required is a major
racy have taken a heavy restructuring. Notwith-
toll on the single-screens, standing legal issues, sin-
which was once the bea- gle-screens should devise
con of the southern movie a gameplan to ramp up
industry. Unable to reno- screens and compete with
vate or charge more, the multiplexes.”
single-screens struggle to “Shanti Theatre
Single-screens face more er in Tamil Nadu, due to haunt, charging between
stay alive even as multi- owned by late thespian
risk since the majority of the low-cost nature. The Rs 25 and Rs 50 a ticket.”
plexes lure viewers away. Sivaji Ganesan’s family
these are small-budget average ticket price is Rs “Many struggling the-
The state that once and Kollywood’s much-
movies with no guarantee 250 per head in the first atres convert their prop-
boasted of 2,400 single- acclaimed AVM group’s
of success. How can sin- two cities, while it is a flat erties into marriage halls,
screen halls now have AVM Rajeshwari in cen-
gle-screen theatre owners Rs 120 in Tamil Nadu, call centres and service
just 1,260 of them. Ac- tral Chennai are good
take a bet and pay Rs 15 leading to slower returns. apartments. For us, there
cording to theatre own- examples of screen addi-
lakh upfront as minimum However, the fact that is no freedom to do busi-
ers, this creates a long tions and subsequent in-
guarantee for low-budget there has been a steady ness. Unlike multiplexes,
queue of movies waiting crease in audience walk-
flicks without an impres- rise in mall multiplexes single-screen theatres
to hit the screens. ins. There are many
sive starcast? On an aver- — including addition of have to earn revenues
Tamil Nadu Thea- finance options available.
age, 60 films get filed into 60 screens in existing solely from ticket sales.
tre Owner’s Association There are few risks as
multiplexes — indicates Ticket prices at single-
Tamil films still rake in
the cautious pace of mod- screens are controlled by
70% revenue from movie
ernisation. Sources say the Cinematography Act.
theatres,” he added. Ra-
there are around 300 The law is even stringent
manathan is also a for-
screens planned by ex- on floor plans and thea-
mer president of TNOTA.
Unlike Mumbai or Bangalore, hibitors like PVR Cin-
ema, INOX and Satyam
tres cannot refurbish the
existing seats to wider
Echoes Suresh Kumar,
CEO of Real Image Tech-
multiplex entrepreneurs are still cinema in Madurai, Co-
imbatore and Tirupur,
and broader ones nor in-
crease the legroom, as
nologies, which builds
digital cinema infrastruc-
fewer in Tamil Nadu, due to the which may open by 2012-
13.
rigid seat measurements
as per the Act prohibit
ture for exhibitors. “There
are both capex and opex
low-cost nature. The average Single-screen thea-
tres say releasing a large
such modifications,” he
said. Paneerselvam add-
models available for sin-
gle-screens to go digital
ticket price is Rs 250 per head in number of prints at film
launch affects single-
ed that the law needs to
be softened for the benefit
in their expansion plans
obviating the total cost of
the first two cities, while it is a flat screen theatres. “Prints
of big budget flicks fea-
of both low-cost films and
non-premium class audi-
ownership (TCO) fears in
the minds of exhibitors.
Rs 120 in Tamil Nadu, leading to turing Vijay and Ra-
jnikanth are made into
ence.
The theatre owners
Digital upgradation is
about Rs 50 lakh to Rs 60
slower returns. many copies to cram all
available single screen
want the government to
decontrol ticket pricing
lakh per screen and along
with digitalising, the ena-
theatres and some mul- for single-screens. “The
bling of digital cinema
tiplexes. Endhiran made law should be relaxed to
advertising other than
Rs 70 crore in the first of allow a reasonable hike
ticket sales revenues,
week solely with its omni- in ticket rates to recoup
(TNOTA) president Roh- could open ad revenues
a queue for want of thea- present release across the investments required to
ini Paneerselvam points stream for exhibitors in
tres and most of them are state. While single-screen refurbish theatres,” the
to the demand-supply gap enhancing their revenue
medium and low-budget theatres die out, a source TNOTA president says.
in this industry, which ca- potential and return on
films which do not attract of cheap filmi entertain- “Ticket sales are our sole
ters to budget-conscious investment,” he said.
the high-spending multi- ment to economy-class source of revenue... With-
producers and viewers - FENS
plex audience.” theatre goers vanishes. out improving comfort
alike. “A decade ago, we
Unlike Mumbai or Single-screen theatres levels, it would be un-
released 98 films a year,
Bangalore, multiplex en- are considered to be conscionable to raise the
but now we have 140
trepreneurs are still few- budget theatre-goers’ ticket charges and cover
films awaiting release.
8
8
Financial
Rules for
30-Some-
things
A
s you grow older, your
role and responsibilities
change; so do your finan-
cial requirements. Aaron Rod-
rigues asked financial planners
to address the priorities of the
30-somethings
In a previous issue of Mon-
eylife (1 July 2010), we talked
about the glorious 20s and how
young people ought to pull up
their socks early, or suffer finan-
cially in the later years of their
lives. We emphasised discipline
in savings and investment as the
pathway to financial security.
As one grows older, that fo-
cus should not change; but the
method would, with the change
in priorities. Managing finances
effectively must continue to be
your primary goal for achieving
financial security and leading a
comfortable life.
When you reach the 30s,
you are more mature. You may
have given up the bike that you
took on equated monthly instal-
ments (EMIs) for a car. You’ve
very likely started a family. And
while your earnings may have
increased, so has the expendi-
ture. There were days when you
didn’t think twice before buying
an expensive shirt. Now, you’re
busy shopping for baby’s diapers.
So, if you are in your 30s,
here are eight things that could
help you manage your finances
better.
1 Dream a little dream for
yourself
This may be your last chance
to experiment with your career.
For, as years go by, age and re-
sponsibilities can weigh you
down. “By the time you have
reached your 30s, 10 years of
your life have gone by, which
should have given you a decent
amount of wisdom,” says finan-
cial planner Sumeet Vaid. So if
you are thinking of starting a
business, this could be the best
time. Of course, there will be
financial difficulties. The pres-
sure of starting a family is hard.
But getting a business started
at this stage has its advantages.
For, trying to undertake such a
change in your 40s would extend
your financial responsibility. Be-
cause it’s not just about start-
ing a business, but also about
changing your job. Of course, it’s
an advantage if your better half
is also working; otherwise you
might require some additional
financial support.
2 Starting a family early is
good
If you don’t have a child yet,
you are probably going to hear
this from your in-laws: “When
are you going to give us a grand-
child? We would like to see our
grandchild before we pass away.”
Don’t do what many modern-day
couples do, saying: “No mama,
we aren’t ready yet.” This would
be quite dangerous, at least, fi-
nancially speaking.
Is having a child in your arms,
smiling at you, uttering some
gibberish while rolling about, re-
ally such a bad idea? Having a
child early is good for more than
just the joy that children bring
to our lives. It also gives you an
incentive to plan your finances
early. Consequently, planning
ahead becomes so much easier.
For instance, if you were in your
40s and had a kid, most of your
investments would be in bonds
and debentures which give a
lower yield. But if you were in
your 30s, you could also put
money in equities, thereby rais-
ing your nest egg amount. After
all, it’s not just about bringing a
life into the world, but also en-
suring the quality of that life.
3 Start an emergency fund
Before you begin to do anything
else, you must set up an emer-
gency fund. An emergency fund
is an easily accessible stash
of money to be used only in an
emergency.
There are three things to re-
member about an emergency
fund. First, you need to deter-
mine the appropriate amount
for your emergency fund. Sec-
ond, once you’ve determined how
much you need to stash away in
the emergency fund, the next
step is to decide how exactly
to save for it and invest it. Not
earning any interest on your
emergency fund money is as bad
as burying it in your backyard.
So put it in worthwhile financial
instruments. You could choose to
keep this money in a savings ac-
count, a money-market fund, or
equities, depending on how com-
fortable you are with playing the
market. Third, don’t touch it un-
necessarily. Always remember
why you have set it up and that
dipping into it for any unneces-
sary expenditure would simply
ruin its purpose.
4 Get yourself and your fam-
ily a health insurance and
personal accident insurance
With the rising cost of health-
care, can you really afford to re-
main without health insurance?
You should have an insurance
policy that would cover a portion
of the extremely expensive medi-
cal treatment. So, buy health in-
surance that reduces the chanc-
es of a financial trauma during
a health emergency. If you think
your health insurance premi-
ums are expensive, just wait till
you have to pay a medical bill
without any help from an insur-
ance company. Health insurance
gives you vital peace of mind. Do
not go in for family floaters; take
individual health plans for all
your family members.
Health insurance is not the
only insurance you need to buy.
You should also buy personal
accident insurance. “It is impor-
tant to get yourself personal ac-
cident insurance if you are the
sole breadwinner in your house-
hold,” Ramalingam K, director,
Holistic Investment Planners, a
financial planning and wealth
management services company,
says. Look at it this way: You
buy a life insurance policy to
cover your family from the risk
of death. The same reasoning
There are three things to remember
about an emergency fund. First, you
need to determine the appropriate
amount for your emergency fund.
Second, once you’ve determined
how much you need to stash away
in the emergency fund, the next step
is to decide how exactly to save for it
and invest it.
should be applied to your in-
come—if you are unable to work
due to a crippling accident, your
income stream will stop. But if
you can transfer the financial
risk of temporary or permanent
physical disability to someone
else, why shouldn’t you?
5 Asset allocation
You want to make sure that your
money is spread among different
types of investments to protect
yourself, in case one sector of
the market tanks. Create a plan
that fits your long-term financial
goals and consider appropriate
diversification as a part of that
plan. You may need professional
help, so ask a certified financial
planner to create a portfolio. Ide-
ally, it’s in your 20s and 30s that
you would invest much higher
amounts in equities and a small-
er amount in bonds. The reason
is that you can take a risk at this
stage of your life. As you grow
older, the risky part of the port-
folio should come down. So you
invest more in bonds and deben-
tures in your 40s, as your work-
ing life reduces. Just make sure
that you re-visit your portfolio
at least once a year, throughout
your 30s, to re-balance it as and
when required.
6 Increase your SIP to equity
for retirement and children’s
education
In the 1st July issue of Money-
life, we showed you how to invest
in equity through systematic in-
vestment plans (SIPs). The rea-
son to put in small investments
through SIPs was to help you
mitigate market risk and volatil-
ity. More importantly, it lets you
test the waters and build your
portfolio one step at a time. The
30s are the time to increase this.
You might ask, why? Because,
the only way to be properly pre-
pared for early retirement and
requirements for kids’ education
is through equities. “Increase
your equity SIP amount for any
retirement planning and your

children’s education,” says PV
Subramaniam, a financial advi-
sor.
Says Sanjay Khatri, proprie-
tor, Krushna Finance, “If a per-
son opts for SIP for his child, and
if he happens to get into some
difficulties, he could discontinue
his own SIPs, but he should not
interfere with the child’s SIP. We
advise such persons to continue
investing for their children.” A
monthly SIP helps in averaging
the cost of purchase and pro-
vides benefits of compounding,
while simultaneously creating
wealth over a longer period.
7 Time to write a will
Nobody likes to face the idea of
death. But it is a certainty. One
SRM group forays into housing sector
T
he multifaceted SRM
Group, is entering the
housing sector tthrough
its construction arm SRM En-
gineering Construction Corpora-
tion Ltd. (SRMECC), operating
primarily in the buildings and
factories segment, with several
million square feet of residen-
tial, commercial and institution-
al buildings to its credit.
According to the compa-
ny’s CEO Dr.R.Ramkumar,
SRMECC meets the growing
demand for a mid sized profes-
sionally managed construction
organization, catering to the
stringent demands of the indus-
try. The company, as a policy
works closely with select clien-
tele and provides personalized
services on a long term basis to
its customers. It is in discussion
with several business groups in
India and abroad for such long
term association.
SRMECC has a significant
land bank in and around Chen-
nai and has plans to expand this
land bank as well as develop the
same for the Residential Real
Estate sector, using its expertise
in the field of construction. New-
er projects are also under active
negotiation and the company is
planning major investments in
this sector in the short and me-
dium term.
The first such project SRM
Green Pearl, is a 364 apartment
conglomerate at Potheri near
Kattankulathur off GST Road.
The location is very close to com-
mercial and educational centres,
and is well connected by road
and rail. The residential complex
offers a serene living environ-
ment, with clean air and water
being available at site.
SRM Green Pearl comprises
well designed, ventilated, 1BHK,
step is to buy a life insurance pol-
icy. But having a will makes life
a little easier. Even the smartest
of people don’t leave wills; this
leads to major problems for their
loved ones, after they are gone.
Think about the Ambanis. “It is
vital to draft a will and to make
provisions for what may happen
if you are incapacitated in any
way. Make sure that friends and
family know where this infor-
mation can be found, and that
a couple of trusted people have
copies,” says K Ramesh Bhat, a
Chennai financial planner.
A will protects your family
from any uncertainty and en-
sures that your wishes are car-
ried out. It lays down a proper
division of your real estate and
financial assets according to your
2BHK, 3BHK, 4BHK apart-
ments in stilt plus 4 floors, with
excellent landscaping gardens
and play area for children, elec-
trical power backup for common
services, water treatment and
sewerage treatment plant, rain
water harvesting, covered car
parking etc. These apartments,
with specifications matching
the very best and constructed
to stringent quality parameters,
would be sold at very competi-
tive prices, providing value for
money to the customer in real
terms. The company has re-
ceived building plan approvals
for the project.
The company has plans to
construct a commercial complex
adjacent to SRM Green Pearl
to possibly house a restaurant,
mini super-market, swimming
pool, gymnasium, meeting hall
etc. which can be used by these
residents on commercial basis
as and when necessary. Conse-
quently, the maintenance cost
for these apartments is kept
minimal. The residential devel-
opment is planned on an area of
about 5 acres, which includes al-
most half an acre of designated
park space.
Dr.C.N Srinivasan, Partner
of C R Narayana Rao,of the ar-
chitecture and engineering firm
involved in the design of SRM
Green Pearl said, this project is
ideally suited for those who do
not wish to compromise on the
quality of construction but at
the same time are conscious of
the total investment and main-
tenance cost of their apartments.
The design and specifications
will be on par with best industry
standards.
Ms Kavitha Selvaraj, Associ-
ate Architect, who had champi-
oned the design of the project,
wishes. Be clear, precise and
cautious when writing a will. A
will can either be a very short
one stating, “I leave everything
to my wife”, or a detailed one
listing all the assets beneficiary-
wise. Also, try to keep checking
and, if need be, updating your
will, as it can be done anytime.
8 It’s time to give back some-
thing
Yep, it is! Financial planners
advise that something be given
to charities, even if it is a small
amount. “Give money to charity
every week (and double it when
you miss a week). These are the
things that 30-somethings need
to focus on,” says Mr Bhat. It of-
fers satisfaction that is immeas-
The company has plans to construct
a commercial complex adjacent to
SRM Green Pearl to possibly house a
restaurant, mini super-market, swimming
pool, gymnasium, meeting hall etc.
which can be used by these residents
on commercial basis as and when
necessary.
outlined the factors that have
been critical to the design pro-
cess of the project. She men-
tioned that care has been taken
to ensure that adequate natural
light and ventilation along with
proper building orientation, had
been provided, so that there is
savings in the energy required
by the residents. Active systems
like common solar water heat-
ing, waste water recycling are
additional features which have
been incorporated in the project.
Likewise, the process employed
for selection of durable finish-
ing materials and landscape de-
tailing would ensure that a fine
ambience is created within the
development.
According to Mr.Ramesh
Nair, Managing Director of
Jones Lang LaSalle (JLL), In-
dia’s largest property consultan-
cy firm, the project is expected
to have a high acceptance level
from end users and investors
given its location, future capital
appreciation and growth pros-
pects of the GST Road corridor,
state of the art design and ex-
tremely competitive pricing. Mr.
Nair mentioned that JLL would
be involved in marketing of these
apartments.
9
urable. It is tax–deductible, to
some extent, under Section 80G
of the Income-Tax Act. This ben-
efit is subject to a ceiling of 10%
of the gross total income of the
taxpayer. But only cash dona-
tions are eligible for this deduc-
tion; those in kind—like food,
clothes, medicines and even of-
fice equipment, do not qualify.
Anonymous donations will not
work in your favour. You need a
stamped acknowledgement from
the recipient as proof of the do-
nation. Such receipts usually
also mention the eligibility of
the organisation and the extent
of the tax deduction that the do-
nation would
get.
- Money Life Features
Dr.Ramkumar mentioned
that in this ambitious initiative
into Real Estate and progressive-
ly into infrastructure, SRMECC
plans to translate the customer
friendly personalised approach
it has successfully practiced in
the field of construction, to its
real estate operations The com-
pany would be launching its oth-
er residential real estate projects
on an ongoing basis.
It may be noted that
SRMECC is involved in civil and
structural construction, electri-
cal, plumbing, fire fighting, land-
scaping work and in the building
of related infrastructure. The
company, in association with
Syncotts International, provides
systems solutions to sport sta-
dium requirements of customers
on a turnkey basis. It also offers
turnkey solutions for hotels, hos-
pitals and institutional build-
ings. The company has obtained
several contracts in the recent
past including the prestigious
250 bed Pullman Hotel in Maha-
rashtra. It is in advanced stages
of negotiation on several other
contracts.
- Staff Reporter
10
VGN launches Mini Township project ‘Brixton’
R
eal estate firm
VGN Developers
Private Limited
launched a new 1872 unit
residential township pro-
ject ‘Brixton’, to be built
using international ALF
Technology, at Irungatu-
kottai, about 40 km from
here.
Spread over 23 acres,
the Mini Township pro-
ject would have a total
built up area of 1.60 mil-
lion sq ft and would be ex-
ecuted in two phases.
The first phase would
cover construction of 80
lakh sqft, involving 800
units, comprising two
and three bedroom apart-
ments ranging from 740
sqft to 1,235 sqft. It would
be ready in 30 months
time.
Each unit would be
loaded with superior
specifications and life-
style amenities to provide
a comfortable living.
Talking to reporters at
the launch function, VGN
Managing Director Prat-
ish Devadoss said ‘’VGN
Brixton will set a bench-
MARG properTies launches
new residential project
M
ARG Prop- ture
erTies, the has come up with yet
real estate another
arm of India’s fastest project “Brindavan”,
growing infrastruc- a residential project
‘’Now VGN brings
this technology
to Brixton to offer
better quality finish
for affordable
housing project
priced at Rs 1985
per sqft’’
mark in the industry by
using Aluminium Form
Work (ALF) technology
without using any bricks.
The prices have been at-
tractively fixed at Rs
1985 per sq ft.
ALF technology uses
only concrete and steel
with a pre-fabricated alu-
minium mould to offer 1985 per sqft’’, Mr Prat- pose Hall, Home Theatre priority for any parent.
better strength and fin- ish said, adding, ALF suites, Indoor Games, With better commut-
ish. This was so far used technology would ensure STP Plant, Convenience ing facilities and a six
only in luxury and pre- reduction in 75 per cent store, Pharmacy, Saloon, lane high way, VGN Brix-
mium projects because of labour force and timely coffee shop, ATM and ton is all set to become
the additional cost. delivery to consumers. more offering paving the one of the best living des-
‘’Now VGN brings this VGN Brixton will of- way for a happy living. tinations in the fast de-
technology to Brixton to fer its customers, a wide Maharishi Vidya Mandir veloping corridor in the
offer better quality fin- range of features and in the premises will offer region.
ish for affordable hous- amenities including quality education for the - Staff Reporter
ing project priced at Rs Gymnasium, Multipur- children which is a main
up between Sripe- this property would
rumbudur and Or- be a blend of conven-
gadam on a six lane ience of essentials
express way and and entertainment
over a 16.5 acres of and would have a
land. yoga centre, swim-
“Truly a value for ming pool, commu-
money initiative”, nity hall, creche, res-
the project has a taurant, game room,
special introductory library and a fitness
price of Rs 1999 per centre, he said.
sq ft. The customers The outdoor
would be given an amenities would
option to buy a flat include 1.6 acre of
at a monthly EMI of community park,
Rs 10,000, he said. welcome plaza, pa-
 He said Brinda- vilion, central court,
van would feature 14 children’s play area,
blocks with 14 lev- multiple sports
els of 12 apartment court, school and
units on each floor, convenience shop, he
thereby making it a said.
total of 2,184 units. The project, with
“The uniqueness of multi level car park-
the project is that all ing would be com-
the units in it would
be 100 per cent vaas-
tu compliant”, he
pleted in three phas-
es over a period of 24
months from now.
said.
The property to
be built would have
two bedroom apart-
In the first phase,
six blocks compris-
ing 936 apartments
would be completed,
ments with 611, 613, he added.
organisation, at suburban Sripe- this connection, Mr 889 and 893 sq ft - Staff Reporter
rumbudur at a cost Oscar Braganza, areas and three bed-
milestone of Rs 500 crore. Executive Director, room flats of 1,054 sq
Addressing a Marg Group said the ft each, he said.
press conference in project was coming  The Club House at
11
12
Semmozhi Poonga:
A Greenery in the heart of Chennai
T
he Semmozhi Poon-
ga which has come
up at the place
where crores of deals
were made - the Wood-
lands Drive in restaurant
- is open to public once
again, but in a different
avatar. A botanical gar-
den has now replaced
the much-loved restau-
rant at the same location.
Chief Minister M Karu-
nanidhi, whose govern-
ment had set in motion
the closure of the res-
taurant, inaugurated the
new Semmozhi Poonga.
The garden has been
christened such to com-
memorate the Classical
Tamil Conference, which
was held earlier this year.
The garden will fea-
ture eight subgardens
displaying flora of dif-
ferent varieties, such as
a tree court, mural walk
and bonsai, herbal and
exotic gardens. Also on
display will be a butter-
fly garden and a golden
garden that would fea-
ture plants that flower in
different shades of gold.
There is also an artificial
duck pond.
Though the gardens
opened now it could take
at least a year before it
can be viewed in its full
intended glory. “Most of
the plants here are new.
This is a start. But we
can assure you it will look
more beautiful as time
passes because the plants
would have grown”, the
park’s horticulture of-
ficer, G Vijayaram, told
media.
The garden itself still
does not have the approv-
al of the vast number of
those who adored the old
drive-in restaurant that
served its last coffee on
April 12, 2008.
“It certainly wasn’t
pleasant when the res-
taurant was shut down.
But if the new garden can
do something to increase
the plant and bird life at
the location, then it may
be alright”, says one of
the regulars at the res-
taurant.
He adds that au-
thorities would have to
take care to maintain
the gardens and ensure
that plastic bags are
not strewn about. Arjun
also notes that the wa-
ter in the pond and the
fountains should be kept
clean. “Overall, I hope
they don’t let it fall into
ruin like they have done
with the Anna Tower
Park”, he adds.
The Semmozhi Poonga
on Cathedral Road will be
open for use between 6
a.m. and 8 a.m. For oth-
ers, the park will be open
between 10 a.m. and 8
p.m.
The entry fee has been
fixed as Rs.5 per person.
Free entry will be avail-
able for children aged
below 10 and for persons
with disability. The open
auditorium available
within the poonga can be Though the
hired to organise func-
tions for Rs.15,000 a day,
gardens
a release from the Horti- opened now
culture Department said.
The department also it could take
requests visitors to avoid
bringing plastic bags or
at least a year
eatables. Parking charg- before it can be
es at the poonga for the
first three hours would be
viewed in its full
Rs.5, Rs.10 and Rs.25 for intended glory.
two-wheelers, cars and
vans, respectively. For
every subsequent hour,
parking charges for van
would be Rs.25, while for
cars and two-wheelers,
Rs.5.

SECURE YOUR HOUSE
Ground Reality
E
very house These are quite un-
owner wants safe unless highly
to make his toughened or bur-
house burglar- proof. glar proof glass is
In the city, people used in them. But
have often seen their these glasses are
houses ransacked highly expensive and
when they are away are generally beyond
even for a short pe- the means of a com-
riod of just two to mon man.
three hours. Chen-
nai suburbs has Provide single
seen so many such panel, 40 mm thick,
burglaries in the solid wood external
past few years that doors for your house.
now almost all fami-
lies leave at least Provide tower
one member behind bolts at the top and
while going out of bottom on the inner
station. side of all external
Though the bur- doors. In addition,
glars keep invent- provide latch bolts
ing new ways to on these doors. Pro-
tackle the security vide tower bolts on
and safety gadgets the inner side of wire
and the number of mesh doors also.
thefts could never Lock all these bolts
be brought to zero, while leaving your
a house owner can house.
fairly deter the bur-
glars by taking cer- Avoid putting a
tain precautions and conventional slid-
by using certain se- ing bolt on the main
curity gadgets in his door. A lock hanging
house. Locks of any in it when you are
kind are no more away, is a big invita-
a deterrent for the tion to the burglars.
burglars who can These days, you can
break open the lock- fit such locks in the
bolts instead of locks, main doors which
use gas-cutting sets can be operated both
to cut into steel and from inside and out-
whatnot. Under such side and the outsider
circumstances, elec- doesn’t get an idea.
tronic instruments
can fairly alert a Plan electronic
house owner of an security for your
attempt being made house in the initial
to forcibly enter his stages only, and get
house and may even the electrical wiring
thwart such an at- done accordingly for
tempt. the safety gadgets
to be added to your
Here are a few house.
such security steps
that can make a
burglary quite dif-
Add one way,
wide angle magic eye
ficult, if not impos- to the main door of
sible: your house, through
which you could peer
Basic
features.
security outside to check who
is knocking at the
door.
Certain security
features need to be Don’t plan an en-
added to your house try to the main house
at the time of its through the servant
construction itself. quarters or rooms.
These are :
Security gadgets
Using steel grills for use when you are
in all windows and in: Security gadgets
ventilators. There can be divided into
is a trend of provid- two categories, those
ing large sized glass which are useful
windows these days. when you are in and
13
those useful when only. trol panel system: the pre-fed finger
you are out. A number of sen- prints are run over
CCTV: Installation sors are installed it. Such locks can
Choose following of Close Circuit TV in the house in this memorise about 100
gadgets for use system in your house system. These sen- finger prints and
when you are in may look odd to you sors send messages thus can cover all
but once installed, to a microprocessor family members. The
Video door phone: you become fond of based control panel lock also initiates an
If you feel unsafe it. CCTV has mono through wiring laid alarm if some unau-
about opening the or colour cameras for this purpose. On thorised person tries
main door with- and can show live or receiving the signal, to unlock it. Locks
out knowing who is recorded activities the control panel, with PIN are also
knocking at the door, of the area in and if in ‘on’ position, available but there
use a hands-free around your house. activates an alarm are chances of their
video door phone. It includes cameras, loud enough to alert opening up in case
Through this door lenses, digital video the neighbours. The an intruder strikes
phone, you can view recorders and moni- control panel also the right PIN. There-
the person standing tors. automatically dials fore, biometric locks
outside and can talk the pre-fed numbers prove to be a bet-
to him before open- Emergencyswitch: of the police station ter choice when in-
ing the door. Choose An emergency or and the house own- stalled on the main
a video phone that panic switch in- er’s mobile number entries of the house.
provides a view of stalled at a most to convey an SMS or Biometric locks have
about 25 feet radius convenient and ac- voice message there. a false rejection rate
and thus eliminates cessible place can be The sensors to be in- of 1 in 1,000 and a
any chance of the reached and pressed stalled in the house false acceptance rate
visitor hiding him- by you in emergency can be chosen. The of 1 in 1,00,000, thus
self. The door phone to convey to the pre- security equipment these are very reli-
suppliers offer glass able.
break sensors for
windows and glass Internet video
doors, motion sen- camera: This cam-
sors to detect move- era, also called wire-
ments, contact sen- less internet video,
sors for doors, smoke can send to you a live
detection sensors, audio-video of activi-
fire sensors, gas de- ties in your house via
tection sensors and internet. Internet
water sensors to de- video camera has its
tect flooding or leak- own web server and
ages. Choose the can connect directly
sensors you want for to a network. A home
your house. In case, network is created,
you have not got the to which this camera
wiring done for this is connected. There-
system, you may after, anything hap-
choose wireless sys- pening in your house
tem that is available is visible to you from
now. When there are anywhere in the
frequent power fail- world.
ures or cuts or chanc-
Locks of any kind are no es of burglars cutting While using
more a deterrent for the off power supply of safety gadgets like
your house, a built- hidden cameras,
burglars who can break in rechargeable bat- alarms, video phones
open the lock-bolts instead tery can be chosen to
run the control panel
and CCTV, you may
not want others to
of locks, use gas-cutting system. know of them or
wish to talk about
sets to cut into steel and Remote control: them. However, us-
whatnot. Certain security so-
lution companies
ing these security
gadgets may provide
provide a remote you your piece of
can provide both fered phone numbers control that can mind while you are
coloured as well as and email addresses switch on or off all away on vacation.
black and white pic- that there is an electric appliances in These days, security
tures of the visitor. emergency and help the house. It can also solution companies
The coloured unit may arrive in time. enable or disable all customise a security
costsalmost twice as It costs a few hun- or some selected sen- plan for you as per
much as the black dred rupees. sors. your requirements.
and white unit. Zi- So you may strike an
com and Godrej are Security gadgets Biometric lock: economical plan and
reputed manufac- for use when you A biometric lock, still remain aware of
turers of video door are out though costing anything happening
phone. The cost is around Rs 15000, in your home, while
around Rs 7,000 Sensors and con- unlocks only when traveling globally.
14
Ground Reality
Stylish & smoke free
T
here were times
when a big sized
concrete or brick
hood was constructed
above the work counter-
top in the kitchen and
brickwork was raised on
it, extending beyond the
roof slab to let the smoke
and gases out. Later, the
brickwork was replaced
by metallic pipes to get
rid of the odd looking ver-
tical chimney. However,
these days everyone pre-
fers to have an electric
chimney in the kitchen.
Electric chimneys
were produced about
70 years back. In India,
these became available in
the market in 1980s but
didn’t find many buyers.
Yet the manufacturers
persisted with their pro-
duction and supply, hop-
ing that the scenario will
undergo a change one
day. Today, their moment
has arrived. The brick
and concrete hoods stand
completely eliminated.
Is it essential? Indian
cooking involves lots of
frying and tadka work.
Therefore, an electric
chimney should always
be provided in an Indian
kitchen. Besides saving
the kitchen maker from
smoke, grease, odour and
fumes, it also saves the
wall paint from smoke or
charcoal deposits over the
years.
Types: Electric chim-
neys are of two types. One
type has a duct or vent
with it, while the second
type has no vent. In the
first type of chimney, the
duct is led outside the
kitchen where the gases,
smoke and odour are re-
leased. Second type is of
re-circulating type. It re-
moves the smoke, gas and
odour from the air, con-
sumes them within itself
and re-circulates the air
back in the kitchen.
Which type to
choose: The second type
of chimney is provided
with a charcoal filter
which removes all the
smoke and odour. This
filter needs to be replaced
by the user after a speci-
fied time interval. Gen-
erally, this time period
is three to four months.
This chimney has the
advantage of easy instal-
lation. Wherever, the lo-
cation of kitchen doesn’t
allow the provision of a
duct to be led outside,
this chimney is the only
choice. However, a chim-
ney with a duct is more
effective than a ductless
chimney. It removes all
the smoke, odour, gas-
es and even heat of the
kitchen and it consumes
less power. There is no
need to replace the filter
frequently. The only dis-
advantage of this chim-
ney is the provision of a
duct and the job of lead-
ing it outside the kitchen.
A chimney with a duct is
the right choice for Indi-
an kitchens.
Check the place-
ment: A kitchen may
demand the placement
of chimney at different
locations. It may not nec-
essarily be fixed against
a wall. Some large sized
kitchens have the hob lo-
cated on the countertop in
the centre of the kitchen.
For such positions, island
chimneys are suitable.
The chimneys produced
can thus be wall mount-
ed, island chimneys, cor-
ner chimneys or built-in
type. Choose one as per
the requirement of your
kitchen.
Budget check: The
cost of an electric chim-
ney can be as less as Rs
3,500 and as high as Rs
1 lakh. However, a good
make of chimney with all
essential features in it
can cost about Rs 15,000.
Decide your budget, look
for essential features be-
fore buying a chimney.
Air suction capacity:
Manufacturers produce
electric chimneys with
different suction capac-
ity. The capacity varies
from 400 to 1200 cum per
hour. Choose a chimney
having a suction capacity
of more than 750 cum per
hour for it to be truly ef-
fective. Indian conditions
demand this suction ca-
pacity to take care of all
the frying jobs and both
vegetarian and non-vege-
tarian cooking work.
Filters: While char-
coal filter is required
in ductless chimneys
only, all chimneys are
equipped with baffle fil-
ters. Faber was the first
company to launch baffle
filter and has patented it.
Therefore, other compa-
nies have named this fil-
ter differently. Charcoal
filters vary in thickness.
Their capacity to absorb
odour and particles de-
pends on their thickness.
These filters are replace-
able. Baffle filters have
metal mesh layers which
trap the grease particles
in the air. These filters
are removable and wash-
able. Stainless steel is
preferred over aluminum
in these filters. Baffle fil-
ter, cassette filter, mesh
filter etc used by different
manufacturers serve the
same purpose.
Blowers: The effec-
tiveness of a chimney
depends on the number
and power of blowers.
These create a low pres-
sure suction effect around
the cooking area. Look
for PDCA fans. These
are more durable. PDCA
means pressure die cast
aluminum.
Noise levels: Look
for a chimney that makes
less than 60 decibel
sound. Such a chimney
will work almost silent-
ly. One company has
named the technology as
hyper hush technology
and some of its chimneys
produce less than 58 db
noise. A few more brands
of chimneys run almost
silently.
Material: Look for a
chimney in stainless steel
or its combination with
tempered glass. Wood
and copper are also used
in chimneys but glass and
stainless steel chimneys
look the best and need
minimum maintenance.
For duct, you may choose
aluminum or PVC.
Warranty: Many
manufacturers offer life-
time warranty on their
chimneys. Choose one
with such warranty, ex-
ecute it carefully with the
supplier and secure the
cash payment voucher.
Secure the manufactur-
er’s local service contact
details for calling them
in case of trouble or fil-
ter replacement. There is
no need to spend money
on AMC for a chimney.
You won’t need it. Ask
the supplier if the instal-
lation cost is included in
the chimney cost itself.
Mostly, it is included in-
cluding the cost of duct.
While getting it installed,
leave a vertical space of
around 2’6” between the
gas stove and the chim-
ney.
Other important
features: Look for a
chimney that has low
power consumption. Also
see that the chimney is
pest repellent. See that
the controls are push but-
ton type. Check for speed
variation feature. A chim-
ney should run at two
speeds at least, leaving
the choice to the user. For
extracting lots of smoke,
higher speed may be cho-
sen. Automatic timer is
another important fea-
ture. As chimneys run
almost silently, you may
forget to switch them off
after finishing your work.
Automatic timer will
switch off the chimney
after the fixed interval
of time. Some chimneys
have auto cleaning fea-
ture also. Look for it only
if your budget accommo-
dates it. Look for built in
lights in chimney. These
illuminate the cooking
area.
Sophistications:
These days, manufactur-
ers are adding heat sen-
sors, gas sensors, remote
controls, height adjust-
ment feature, tempera-
ture display like features
to chimneys. These are
not essential but you can
always look for these if
interested.
Go ahead, make your
choice and happy kitchen
making!
- JG

Utilising money from Shares
Q. My wife and I are joint
owners of a house in Gurgaon
(held for more than three
years). I am planning to sell
the said house and buy a resi-
dential flat due to security
concernes. The cost of the flat
would be much higher than
the sale proceeds of the house
as the flat is on the top floor
of the building and has a ter-
race attached with each of
the five bedrooms. I have the
following questions:
Can I sell my shares in
various companies and uti-
lise the entire sale proceeds
to meet the deficit towards the
cost of the flat. These shares
have been held for more than
two years and would be sold
through a share-broker on
which security transaction
tax would be paid.
The period of two years for
the purchase of the flat will
be counted from the date of
the possession of the flat or
registration thereof in the
name of me and my wife.
— Devendran R
A. Your queries are replied here
under:
Tax Advice
You can utilise the proceeds
from the sale of shares towards
the purchase of a residential flat.
It is presumed that the shares
held by you are those of listed
companies. The capital gain
arising on sale thereof would be
exempt from tax in view of the
provisions of the Section 10(38)
of the Income-tax Act, 1961 (The
Act).
The period of two years for the
purchase of flat in my opinion,
should be computed with refer-
ence to the date of possession
and not from the date of regis-
tration.
Creating HUF
Q. What is the procedure to
throw one’s individual prop-
erty as corpus to create a
unit of HUF and change the
character of an individual
property to that of belonging
to the family without any con-
sideration?
— Vinod Kumar
A. A Hindu family must satisfy
the following two conditions:
• The family must possess
property
• There must be a Hindu co-
parcenary
Those members of the Hindu
family who are entitled to claim
the partition of the family or its
properties and are also entitled
to have a share as a result of
such partition are called co-par-
ceners.
Any male member (co-par-
cener) of Hindu family can con-
vert his self-acquired property
into Hindu undivided family
property by throwing the same
into common hotchpot (common
stock) as being considered to
be that of the Hindu Undivided
Family. Such a conversion can
be made by a word of mouth. It
is, however, advisable to make
such a declaration in writing in
the form of an affidavit. How-
ever, at present Section 64(2) of
the Income-tax Act, 1961 (The
15
Act) provides that in case of such
conversion through the act of im-
pressing an individual property
with the character of property
belonging to the family with-
out any consideration, the indi-
vidual shall be deemed to have
transferred the converted prop-
erty, through the family, to the
members of the family for being
held by them jointly and the in-
come derived from such convert-
ed property or any part there of
shall be deemed to arise to the
individual and not to the family.
In view of the above provisions,
if the individual property is con-
verted by you to a family prop-
erty, the income from such prop-
erty will continue to be taxable
as your income. The declaration
referred to herein above can be
made on a stamp paper which
should be duly attested by Nota-
ry so as to have evidence in this
regard. Apart from the declara-
tion, there should be evidence
that the intentions expressed in
the declaration have been acted
upon. The change in law brought
in w.e.f. assessment year 1971-
72, as discussed above does not
leave any option for creating a
HUF without a consideration.
16 RNI TN/BIL/02812 Dated 17/08/07

Edited and Published by S. Raghunathan on behalf of R V Publications Pvt. Ltd., Administrative office: B4-2, Vijaya Raghava Manor, 1, Vijaya Raghava Road, T Nagar, Chennai 600 017 and printed by him at New
Merit Printers , Reddy Kuppam Road, Saidapet, Chennai 600 015. Ph: 42697393 Editor : S. Raghunathan