Article
Wishlist 2016 for Real Estate Sector in India
Agricultural land in the rural areas and real estate in cities have always been a stable rock for economies and investors since time immemorial across the world. Discussing various issues like foreign investment, Real Estate Investment Trusts, trend of selling parking spaces within the common facilities and title due diligence, the author is of the view that laws, being the accelerator of the growth story, need to keep pace with the changing dynamics and the demands of the market and the stakeholders. It is opined that so long as there are Indians looking for stable investment returns either through increasing property value or rentals in a country with high inter-migration rates and a burgeoning young population, the saga of real estate sector in India will continue.
Notifications and Circulars
- Start-ups – Government proposes radical changes in laws and some tax breaks for start-ups in India
- Corporate Social Responsibility (CSR) obligations of companies have been clarified by MCA - CSR expenditure cannot be claimed as a business expenditure for income tax purposes
- Project and Service Exports - Memorandum of Instructions have been revised by RBI to reflect policy decisions
- Credit facilities to overseas step-down subsidiaries of Indian corporate relaxed by RBI
- International Financial Services Centre - Permissible activities and relaxations for banking units have been notified
Ratio decidendi
- Company courts cannot interfere with proceedings by secured creditor to realize its secured interests in terms of the provisions of the SARFAESI Act – Supreme Court
- Penalty for non-submission of information sought by SEBI – Supreme Court upholds huge penalty holding that “impecuniosity” cannot be considered
