Credai Magazine - April - 2010

Issue
April
May
June 2010
Cover Story -
Path-breaking Innovations
in Real Estate
World Expo
in Shanghai
Private Equity Investments -

What a Developer should not overlook.
Meridian City, USA :

Inspiration for a 21st Century
"We consider CREDAI

our partners"
Interview with Honourable Union Minister
for Housing and Urban Poverty Alleviation
and Tourism, Kumari Selja.
Quarterly in house magazine of CREDAI National

Why Real Estate market
has not yet recovered fully
and what is the remedy
Dear Members,
The times are upbeat. GDP is likely to touch 8.50% this year. Core sector,
Manufacturing, IT, Hospitality, Tourism, Entertainment and most other sectors
have posted robust results. Exports sector has registered a positive growth after
a long time. Most of the companies are back in their expansion mode. Every company has announced hiring in large numbers
with the IT Companies leading the pack. Most companies have announced reasonable wage hikes. Fear of job loss has vanished
from the minds of the employees. Indian Companies are on the prowl again - have started acquisitions abroad. Gujarat and
Karnataka and a few more states are rolling out several PPP model projects. Karnataka is likely to sign almost Rs. 5 lakh crore
worth of projects during the Global Investors Meet during June 2010. Union Government is unveiling a mega one trillion rupees
investments on infrastructure in the next few years.
Yes, all these signals should have triggered a Real Estate boom by now. Real Estate market not doubt is recovering from the
dumps of 2008, but the same is not in commensurate with the growth of the economy in general. I was analyzing the reasons for
the same. One reason I can identify is that since about 5 to 6 months the media has been blaming that the Developers in Mumbai
and Delhi have jacked up prices by 30% to 40% the moment they saw some movement in the market. And the media kept repeating
the story all over the country over and over again. I am not sure whether the news about Mumbai & Delhi is right or wrong but
as far as the cities like Chennai, Pune, Hyderabad, Bangalore etc the rise is hardly upto around 5% and that too is limited to some
specific locations within cities or to some specific projects. But the media reports about Mumbai and Delhi may be affecting all
the metro cities. And the situation can become quite alarming. If there is any truth in the news, I am sure that our co-developers
in Mumbai and Delhi will take cognizance of the situation and take some drastic measures and if I am permitted to suggest, it may
augur well for the market if prices are reduced to reasonable levels. Unprecedented situations demand unprecedented solutions.
Probably, we can go a step further and even announce the reduction in the media either individually or collectively. This may
trigger a sudden spurt in demand as I am sure that there still remains a huge pent up demand. We should not allow a second dip
in the market, at any cost. As newspapers project, it should not be a story of the goose with golden eggs. Market was poised for
a 'V' shaped recovery since April 2009, but the movement has so far been slow. If drastic action is not taken, we may head
towards a double dip or a 'W' drop.
I repeat, I do not know if the media reports are true or not and my thoughts are based on the said reports and the suggestions are
purely personal. Kindly ignore them if I am wrong.
Regards,
A Balakrishna Hegde, Editor
The Editor is the Managing Director of Chartered Housing, Bangalore and the Immediate Past President of CREDAI- Karnataka
3 C R E D A I I s s u e - A p r i l - M a y - J u n e 2 0 1 0
Editors Note 3
EDITOR
A. Balakrishna Hegde
Chairman's Message 5
President's Address 7 EDITORIAL BOARD

Path-breaking Innovations in Real Estate 8 Irfan Razack
Ranjit Naiknavare
CREDAI: In service of our members 13
Pradeep Jain
Candid Conversation - "We consider CREDAI our partners" 16
Niranjan Hiranandani
CREDAI - Karnataka Initiative - Bangalore Impact - A Campaign for UIDAI - Aadhar 20
Dharmesh Jain
Best Practices - Meridian City, USA: Inspiration for a 21st century city 23 Harsh Patodia
Service Tax Issues - Post Budget 24 Uzma Irfan
G P Savlani
Earned Value Management In Construction Projects- An Introduction. 29
Mukta Naik
Exploration Of Rain Water Harvesting At Macro Level 30
Using the sun to sterilize water 31
India's Real Estate Sector In Quiet Revolution Mode 33 CONTENT

Minerva Research and Media Services Pvt Ltd
Book Extract - SPACE FOR SHOPPING, By A.K. JAIN 34
Email : mukta@minerva-research.com
Have A Glance Over Your Shoulder Please! 40
Landscape & Me 45 DESIGN & LAYOUT

Architectural Design in Low Income Housing 46 GAAP Communications Pvt. Ltd.
Email: mail@gaapcommunications.com
Worker welfare 49
World Expo in Shanghai - Shanghai stakes a claim to Asia's premier city 52

PRINTING
MCHI Property 2010 exhibition gets overwhelming response 54 Jwalamukhi Mudranalaya Pvt. Ltd.
Event report - Realty Expo 2010 by CREDAI Bengal 56
MCHI signs Joint Declaration with Maharashtra Govt; 59

Please send in your feedback,
Private Equity Investments - What a Developer should not overlook 60
contributions and advertising queries to :
A much larger role for CREDAI 62 GP Savlani,
CSR Initiative - VGN Homes adds school projects 63 Resident Director,
Event Report - Property 2010 Thane 63 Confederation of Real Estate Developers'
Associations of India
Recognitions - S.I.S. Safaa Highly Commended at Asia Pacific Property Awards 64
CREDAI - National Secretariat
Recognitions - Secretary - Credai Kochi 64
703, Ansal Bhawan,
CREDAI NCR in dialogue with Banking industry 67
16, K.G. Marg,
Credai Preferred Partner Program (CPP) 68 New Delhi - 110001
CREDAI Vizianagram inaugurated 69 Ph: 011- 43126262, 43126200
Fax - 011- 43126211

ROFL after client meetings Hilarious experiences of a Landscape Architect 70
Email: info@credai.org
S e r i o u s Humour 72
Website : www.credai.org
Dear friends,
We've been debating and dissecting the proposed Real

Estate Regulatory Bill for months now. After listening to
several points of view from people at different ends of the
spectrum, I've evolved a very strong perspective of my own
and that which CREDAI has been trying to push at various
levels.
Real estate is a complex industry and each real estate

product, be it a home, shop or an office space, is produced
through a series of processes that form a long supply chain. This chain involves
stakeholders from varying backgrounds-the poor construction worker, the buyer, the
contractor, the banker, the development authority, the fire inspector, the sewage engineer
and many more-and impacts their livelihood. To cut a long story short, it is meaningless
to regulate only the real estate developer for a process that involves multiple stakeholders.
I strongly propose that the Real Estate Regulatory Bill be expanded to cover broadly the
following 4 categories of stakeholders-real estate developers, urban local bodies,
financing organisations and customers. A more holistic approach to real estate and its
myriad complexities will be a better bet to rid the industry of its ailments. The current
approach must be abandoned in favour of a more inclusive one. Everyone must perform
to rectify the errors in the system and ensure on-time delivery of quality real estate at
appropriate costs. As the apex organisation of private sector real estate developers,
CREDAI will certainly ensure support of a bill that looks to improve standards and prevent
malpractice. We would be happy to work with the government on implementing a well-
rounded and holistic policy if our suggestions are well taken.
Warm regards,
Kumar Gera
Chairman
Dear friends,
The report on real estate presented by McKinsey & Co suggests that our sector
is capable of contributing 1.5% to the GDP. But this will only be possible if the
Government of India puts in place effective policies for the growth of the real
estate sector. We all know the bottle necks that keep throttling the growth of our
sector. Apart from the urgent need to have effective policies and legislations to
enable us to procure land for development and expeditious clearances of
development projects. One of the major hurdles is the availability of finance.
The Reserve Bank of India and the Government should re-look at the importance
of the sector and accord it the priority that our sector deserves. India, as we all
know because of its policies of constraint, did not experience the turmoil of the
global melt down. But, at the same time, we all know the growth of our country
is slow and every Indian dreams of living in India which is even better than the
best in the world.
As the real estate market matures, we have more options to fund projects than ever before. Besides bank loans, we now have
the option for debt financing through external commercial borrowings for developing townships. The IPO route is also gaining
popularity as real estate organizations gain confidence to tap the stock markets. Qualified Institutional Placements (QIPs) are
emerging as another means of finance. Private equity and foreign direct investment are being explored by several organizations.
For the large developers, there are many financing options, but new entrants and small players still find no place in accessing
these funds. For a housing revolution to take place policies of the Government has to be all inclusive and all developers, large
and small, should be in a position to get finance for their projects.
There are several challenges. We urge RBI to consider bringing about a radical change in the funding of the real estate projects.
Shortage of housing can be met by increasing supply. Curtailment of credit to this sector is counter-productive and the shortage
of housing continues to increase. Some of the policy initiatives that are urgently required are:
1. Direct banks and financial institutions to lend to developers aggressively to accelerate supply.
2. Priority be accorded to fund projects for the common man. Presently Rs 20 lakhs is classified as priority lending this norm
needs to be revised upwards to at least Rs 50 lakhs.
3. Reduce home loan rate to within 7%.
4. Reduce rate of interest on loans to developers to 9%.
5. Norms to fund real estate projects should be similar to industry. Large and small developers should be entitled to access
funds.
6. FDI/ECB norms to be relaxed.
7. Treat Real Estate at par with Infrastructure for funding.
8. The pension funds and insurance funds be permitted to invest in housing and secondary mortgage market papers.
While we continue to draw the attention of the Government to ease the norms of funding, we, as developers, are duty bound to
follow and adhere to adopting healthy and transparent policies. We need to lay due emphasis on corporate governance and
make concerted efforts to improve our image before our customers. We are also duty bound as members of CREDAI to adhere
to and follow our Code of Conduct, both in words and in spirit.
Its a two way process. Lets all work together to bring about a revolution in our sector. Lets set an example for others to emulate,
let us together open the doors for a better tomorrow.
Sincerely,
SANTOSH RUNGTA
President CREDAI
Cover Story -
Path-breaking Innovations
in Real Estate
M
Many of us whereas previously
EDITOR'S BOX
w o u l d commercial real estate
As we use a pen everyday,
imagine, had been a highly risky
we never think of the men
though we proposition. The
and ideas behind this great
know better, that the retail shopper now had a
invention. All our real estate
mall, the intelligent whole new expereicne
developments today are born
commercial office building to look forward to. The
out of innovations of the past.
and the integrated township developer had a new Mukta Naik
The Author takes you
have been here forever. We business model. is an architect and
through some.
use technology and formats urban planner who runs her own
Gruen's vision of the content writing and editing firm.
and add to them our own innovations, often without a thought to shopping experience She has been writing on real estate
those who pioneered them. Here's to taking a look at how some of issues for the past ten years.
these path-breaking and life-changing real estate formats began.
The Retail Mall As We Know It

A Viennese architect who landed in the US during the World War II
"with an architect's degree, eight dollars, and no English", Victor
Gruen literally invented the retail shopping mall.
It all began when Gruen was asked by a friend in 1939 to design a

leather-goods store in New York. He came up with a revolutionary
storefront, with a mini-arcade in the entranceway filled with glass
cases, spotlights, and faux marble, and green corrugated glass on
the ceiling. He called it a "customer trap," designed to lure customers
into the store regardless of their interest in the products on display.
Needless to say, this was the seed idea that gave way to the very
concepts of modern retail.
His landmark project, the Southdale Mall, was the first enclosed Gruen mall detroit, Victor Gruen (Inset)
mall in the US near Minnesota. It opened in 1956 and Gruen had as central to community and urban life was revolutionary for a nation
actually envisioned it as the central point of a much larger community. and a world where the mindset was still largely rural. Malcolm
Southdale Mall literally turned the concept of hopping on its head. Gladwell, who later authored Gruen's biography wrote in The New
Foir the first time, shopping was no longer facing the street or parking. Yorker that "Victor Gruen may well have been the most influential
Instead, the mall was introverted with blank external walls and all architect of the twentieth century." For Indian cities today, malls
the activity focused on the inside. Instead of a spread out shopping have certainly become vivid symbols of the consumer culture and
space, Gruen put the entire development under one single roof and indeed of urban life. Needless to say, they are the lifeblood of many
introduced air-conditioning. Another new concept was that of multi- developers today.
level shopping. The mall was spread over two flevels conneted by
The Modern Amusement Park
escalators and fed by two-tiered parking. A central courtyard with
Walt Disney, who gave us our favourite toons like Mickey and Goofy,
visual and entertainment attractions completed the picture. Southdale
also gave us the modern concept of an amusement park. Disappointed
Mall cost twenty million dollars to build. It had seventy-two stores
in the kids' parks and fairs of his time that "were often dirty, sleazy,
and two anchor department-store tenants, Donaldson's and Dayton's.
money-grubbing places", he dreamt of a new kind of amusement
Gruen's visionary concept was to change the retail format forever. park that would have a fantasy setting, provide quality amenities and
Developers could now make money out of building shopping malls, represent the idea of family entertainment. The concept was far
Disney philosophy were obvious and
the theme of the characters carried
into everything, the rides, the
attractions, the lanscape an even the
food stalls!
What started as an idea that drew

scepticism from everyone soon
became the capstone of Disney's
empire. In its first six months, one
million people visited the park; in its
first full year, three million people
passed through its gates. The park
quickly generated capital to finance
a vast expansion. In the years to come,
every expansion of the park resulted
in increased revenues beyond
expectations.
Disneyland, Walt Disney (Inset)
Most critically, Disney's plans envisioned that Disneyland becomes
beyond that of a carnival with rides, games, and inexpensive food.
a destination for vacationers. He planned for hotels and restaurants
Disneyland was conceived as an extension of the Disney brand, and
to be built around the park as an integral part. Almost every major
was the first theme park built in the United States. It brought about a
amusement park around the world now replicates Walt's dream,
major shift in amusement park construction and more importantly, it
focusing on convenience, a superior guest experience, development
fuelled a new kind of real estate development surrounding major
planning that allows for seamless expansion, and most importantly a
attractions.
"theme" that gives a park a sense of identity and uniqueness.
Interestingly, other Disney stakeholders did not support Walt's dream
New Urbanist Townships
and he got no financing for his project. Most bankers and investors
Disillusioned by the cookie cutter spread of post-industrial cities that
declined to help Walt as he had no real estate development and
renounced environmental concern and focused on the automobile,
construction experience. They told him that "the outdoor amusement
and alarmed by the sprawl that modern cities were adopting, several
business was a cultural anachronism that had already declined into
urban planners in '80s America began to simultaneously develop
senility." Walt was very confident, though. He began to gather funds
some first principles for a new kind of urban development. A decisive
by borrowing on his life insurance and selling vacation property in
move in 1991 by a Califronia-based non-profit group called the Local
southern California. He assembled a staff of designers, planners,
Government Commission invited architects Peter Calthorpe, Michael
and artists and formed WED Enterprises, named after his own initials.
Corbett, Andrés Duany, Elizabeth Moule, Elizabeth Plater-Zyberk,
The WED group reworked Walt's broad ideas through a long process Stefanos Polyzoides, and Daniel Solomon to develop a set of
of research and creative brainstorming. In July 1953 Walt decided to community principles for land use planning. These, named the
overcome the obstacle of his inexperience and commissioned two Ahwahnee Principles were then sent to one hundred government
studies from the Stanford Research Institute, one that would examine officials at the first Yosemite Conference for Local Elected Officials.
the economic prospects of developing Disneyland, and the other the Calthorpe, Duany, Moule, Plater-Zyberk, Polyzoides, and Solomon
ideal location for construction. The Stanford group declared that the founded the Chicago-based Congress for the New Urbanism in 1993.
facility could be profitable and recommended a site southeast of Los Today, the CNU has thousands of members, and aggressively promotes
Angeles, a short 27-minute drive from downtown LA. Walt found new urbanist design principles across the world.
additional financing through selling television programming to ABC Broadly, new urbanism revives traditional norms of town planning
television with an agreement that they would promote Disneyland in and promotes walkable living, connectivity through transit-oriented
return for an ownership stake in the property. development, mixed use developments as opposed to single use
Construction began. Joe Fowler, an engineer and retired navy admiral zoning that promoted urban sprawl, mixed income housing to promote
was the construction supervisor and later park manager for ten equitable and diverse societies, high quality of architecture and
years. Disneyland was formally opened a year later, on July 18, 1955, urban planning with emphasis on public spaces, increased density
to rave reviews. The instantly recognisable Disney brand and the and most critical of all, sustainability and green development.
Though none of what the new urbanists said was "new", they brought together
the best design principles under one umbrella. Their vision and research
has spawned several communities across the USA and inspired developments
in Europe and South Africa. In India too, cities like Lavasa are based on new
urbanist principles and are starting a trend of integrated and sensitive planning
for new townships. Going forward, new urbanism will play a distinct role in
shaping the many new urban centres that the India growth story will spawn.
The Intelligent Building

A comprehensive mix of automated buildings that also adopt green principles,
intelligent buildings are here to stay, offering developers the benefits of
long-term cost savings and better building management systems. Technology
has played a key role in the development of intelligent buildings through the
efforts of hundreds of imaginative minds the world over.
The concept of energy management and building automation was fanciful

till the US faced a serious energy threat in 1973 when OPEC countries placed space resort
an oil embargo. Suddenly, thought leaders realised that conserving and
Eye on the future: Space Resorts
managing energy would be essential for survival going forward. At that time,
If you have about three million euros saved up, you could
buildings were mostly over-designed, over-ventilated and inefficient. In the book yourself for a 3-night stay on the world's first space
early '80s, the existing energy management systems transitioned to direct resort set to open it doors in 2010. Developed by a company
digital control (DDC) systems that evolved into the intelligent, sophisticated called galactic suite ltd., it is actually a bio-inspired orbital
control systems we have today. In the '90s, we started moving toward open station designed to be a modular space habitat structure
protocols, and now the use of building automation is an accepted part of with a central-enclosed area where modules will be
most projects. As more advanced versions of these systems were deployed, interconnected to a main docking port. Each of the modules
energy costs actually started declining. will include a sliding diaphragm window to allow tourists a
better view of the earth. A spaceship that can carry four
Today, we understand that energy efficiency and building automation is an
passengers at a time will transport tourists from a spaceport
integral part of the future of commercial real estate. Developers across the
facility located on a tropical island to the space tourism
world have proved the financial feasibility of this business model. However,
spacecraft after an eight-week astronaut training course.
we have along way to go. Even now, only a handful of iconic projects use the
On board the spacecraft, the tourist will orbit the earth at an
availability technology and expertise. Developers in India should seriously
average speed of 30, 000 km / h, completing 15 orbital
explore how these can add value to their projects.
rotations per day. You will be carried around the world in 90
On the anvil: Solar City minutes and watch the sunrise and sunset every 45 minutes.
The city of the future, entirely powered through renewable energy sources This is literally an out-of-the-world experience.
and envisioning the lifestyle of the coming generations, is actually being
built! The planned city of Babcock Ranch is a 17,000-acre community of
homes, offices, and factories near Fort Myers, Florida. The largest photovoltaic
project, a 75 megawatt solar photovoltaic plant that costs $350 million will
power the city. Developers Kitson & Partners envision a town where "electric
vehicles, able to plug in for recharge at convenient community-wide
recharging stations, will glide along avenues beneath the glow of solar-
powered street lamps. Revolutionary Smart Grid technologies will monitor
and manage energy use and Smart Home technology will allow residents to
operate their homes at maximum efficiency, thereby reducing energy costs."
Kitson & Partners is spending $2 billion to build 19,500 homes spread across
the affordability spectrum as well as 6 million square feet of retail and
industrial space. The development also promises the creation of 20,000
permanent jobs over 20 years.
Rochester hills New urbanist community
CREDAI: In service of our members
of approvals and permissions and addressed consumer grievances
I
n these times of great opportunity and challenge,
EDITOR'Sits fitting
BOXthat we
pull together and take CREDAI to the through a special cells set up for grievance redressal.
Mr.next
G Plevel. Thebeing
Savlani author
theoutlines
Resident
what CREDAI does for its members Director
and how of
youCREDAI
can helpNational
CREDAIisonthe Over the years, CREDAI has emerged as a powerful voice for the real
its ambitious growth path. silent force behind all the CREDAI estate developer community. And since the importance of real estate
activities. Here
The Confederation of Real Estate Developers' he gives
Associations of you
Indiaan as a growth driver to the Indian economy grows with each passing
(CREDAI) has been in existence for over ten years now. In this time, in
overview of the past and what's year, naturally CREDAI too has a far greater responsibility as time
it has grown from a group of selectstore for the future.

developers to a large umbrella moves on.
organisation that spans nearly the entire country. What does CREDAI do for its members?
CREDAI's impact At the national level, CREDAI takes up all the issues that impact the
Our achievements are many in the fields of enabling policy, developer community as a whole. It addresses macro-economic
generating awareness on specific issues among our members, policy, national level taxation and other laws through strong relations
G P Savlani
initiating and sustaining dialogue between developers and other with Central Government and Ministries, which CREDAI has
stakeholders in the real estate community, like bankers, financers, developed and nurtured through the years.
fund managers, policy makers, customer representatives, etc. Essentially, CREDAI provides real estate developers with a unified
Specific instances can be recounted from many areas, especially in voice to

Represent issues to the government
shaping policy. CREDAI gave valuable inputs to the government during
Reach out to the consumer
the formation of the Housing and Habitat Policy as well as for the
Seek better solutions through consultation with stakeholders
JNNURM program. CREDAI's consistent efforts contributed to the
Improve the developers' image
abolition of urban land ceiling and stamp duty rationalization. The
organization contributed to the creation of the SEZ Act. CREDAI was CREDAI facilitates interaction within the real estate community
a member of working task force that drafted the urban development through events and seminars and encourages discussion and debate
and housing section of the 11th 5 yr plan. on key issues at NATCON, our annual conference. We invite expert
CREDAI's consistent dialogue with the MoEF regarding Environmental opinions on issues of concern and disseminate information about
Clearance policy for construction projects has brought concessions latest industry developments, policy matters to our members.
and relief, though this is still an ongoing process. CREDAI has joined CREDAI promotes ethics and transparency through the CREDAI Code
hands with the NSDC to promote skill development. CREDAI's of Conduct, encourages best practices and efficient construction
relentless efforts to oppose the levy of service tax on real estate has methods through events and workshops and implements fair dealing
born fruit with amendments made by the tax authorities and more to through a consumer redressal mechanism. We believe that efforts
come. Other matters of taxation like Section 56C and 80 I(B) of the IT towards corporate governance and transparency are critical to
Act have also constantly been on CREDAI's radar. CREDAI played a improve the image of the developer community and will directly
landmark role in urging the Central government to provide a stimulus increase the ability of the sector to attract funding from a larger
package for real estate during the recession. variety of sources. This is critical to the growth of our industry. We
CREDAI has also contributed vital ideas for the nation's development, strive to communicate this to members and encourage each
like the Special Residential Zone (SRZ) to reduce the demand-supply developer to join us in the drive towards transparency.
gap in housing. The organization is working with Indian Banks CREDAI builds relationships between developers, the government,
Association to improve financing situation for real estate as well. financial institutions, media and professionals and builds bridges
Recently, CREDAI was able to work with the RBI and banking with the government through representations, debates, media
association to reclassify real estate to exclude categories like SEZs coverage and legal action. We're working towards building a positive
and hospitals. By doing this, the actual amount of bank funding to the image of the developer community.
real estate industry can be monitored (it now shows as Rs 8,000
CREDAI serves the developer community by being their voice, a
crores as opposed to Rs 40,000 crore by the old classification) and
resource, a good listener and loyal supporter, supports the
this makes a strong case for increasing credit flow to our industry.
government by bringing the industry point of view to the forefront
Local initiatives by CREDAI members have worked to improve local and assists the real estate industry and the larger economy by working
building regulations and their implementation, improving the system towards a positive, organized and professional private developer
community Tie-ups with incubation centres that support business
Promote skill development
CREDAI helps members prosper by creating a cohesive unit that can
Acquire and distribute standardized reference material through
reap the industry's true potential. In this way, CREDAI prepares the
portal, other avenues
stage for growth and prosperity for the developer community.
Encourage standardization
Moreover, by being part of an association that holds such an
Encourage innovation
influential position, the progress of the beneficiaries becomes
Global outlook
sustainable.
Develop new markets
How CREDAI impacts your business closely? Introduce consumer-oriented initiatives
Today, CREDAI brings together 5000 private sector developers
We are aware that there are several initiatives that we can take to
belonging to 19 city- and state-level associations under a single
umbrella. What's more, CREDAI is not a centralized organization. It improve our performance and increase our reach. However, by
is doubly effective because it comprises of city- and state-level definition, an association is the sum of its members. Therefore, we
associations that understand local issues closely and work towards would appeal to you, our members and associates, to pool in your
practical solutions at a local level. This is strengthened by a national resources and help CREDAI grow.
secretariat that takes up issues at the national level and works at How can you help CREDAI?
bringing its member associations together through various means of
If you are already part of a CREDAI member association, please
communication and through events and round tables.
share your concerns with your CREDAI office. We can discuss
For instance, your city-level developer association, being a member problems, seek solutions and grow together. If you are not yet a
of CREDAI, will work to: member, join now or if there isn't a CREDAI member association in
Monitor local development issues your city, start one with our assistance. If your city-level developer
Keep you informed of local policy changes group is not part of CREDAI, make sure it becomes part of the CREDAI
Make strong connections with local government family to make a great impact.
Address policy measures that harm developers
Be the Change
Reach out to consumers with important messages
CREDAI has the chance to play a significant role in the nation building
Similarly, your state-level developer association will, being a CREDAI
process. India is urbanizing rapidly and is in need of large amounts
member:
of infrastructure. We live in challenging times when decisions and
Make strong connections with the state government
policies are made in favour of powerful lobbies backed by research
Many policy issues are state subjects; the association will track
and credible organizations and people. CREDAI has the potential to
these and inform you of critical changes
be such an impactful organization.
Raise common issues with the government in collaboration with
national association CREDAI To achieve our goals, we need your support and teamwork. As the
famed industrialist and philanthropist Andrew Carnegie, one of the
As an individual developer, you will benefit greatly from being part of
most famous leaders of industry of the late 19th and early 20th
a city- or state- level association.
centuries, famously wrote, "Teamwork is the ability to work together
CREDAI is dreaming big
toward a common vision. The ability to direct individual
Clearly CREDAI has the potential and should look at catapulting itself
accomplishments toward organizational objectives. It is the fuel that
to the next level. We are already working out plans to offer enhanced
allows common people to attain uncommon results."
advantages to our members, in comparison with what NASSCOM
does for the IT/ITeS industry, for instance.
A study by Ernst & Young recently submitted to CREDAI encourages

us to adopt some initiatives from other successful industry
associations. Some of these are:
Creating committees that identify and benchmark best practices
in our field
Commercialising new concepts
Encouraging support industries
Greater emphasis on research and knowledge sharing
Databases for trade leads
Candid Conversation
"We consider CREDAI our partners"
on'ble Union Minister for Housing and Urban Poverty Alleviation and The security of tenure and access to basic civic amenities will
H
Tourism, Kumari Selja spoke to Mukta Naik on the role of private
developers in affordable housing, the progress on the regulatory bill
for real estate, and her perceptions of CREDAI's role in the industry.
materialize only if the issues of scarcity of urban land and high urban
land prices are addressed comprehensively. The aims of the Urban
Land Policy, 1965, remain valid but its implementations, unfortunately,
has not yielded desired results. Meanwhile there have been changes
Housing, especially affordable housing, is clearly the need of the
in the macroeconomic policy and the country has witnessed large-
hour. Private sector real estate developers, though interested, are
scale urbanisation, both, through the expansion of existing cities as
unable to bring down costs below a point due to cost of land and
well as due to the migration from rural to urban areas.
long approval processes. How does your Ministry plan to bring private
sector developers into the loop so that they are encouraged to build My ministry has consequently taken an initiative to set up a committee
and sell affordable homes at reasonable prices? to study and give recommendations on how towns should expand
The auctioning of land for determining its market price is an old and and grow to meet these challenges. The details are being worked
well established economic principle. Prima facie, there can be no out in consultation with the sister Ministry of Urban Development,
objection to the auctioning of land acquired by the state governments which administers the issues of urban planning and development.
at agricultural prices, if its land use is changed and it is given in
Will single window clearances, or at least simpler clearance
ownership to private parties who then derive benefit from the capital
procedures for developers ever be a reality in your opinion?
gains or put it to use for purposes that yield higher returns. Such
The state governments and the private sector have to work out a
auctioning enables the government to be the beneficiary of the
win-win combination to simplify the approval procedure. The private
unearned increase in land value and the conversion of land use
sector needs to give a firm commitment to the state governments for
plugs the gap in demand-supply of urban land.
realising the objective of affordable housing in their projects and the
state governments need to put a system in place for single window,
fast track clearances.
For instance, the Maharashtra Chamber of Housing Industry (MCHI)

and the Government of Maharashtra (GOM) have signed a Joint
Declaration on April 28, 2010, for delivering 4 lakh homes in five
years. I am given to understand that the GOM has assured to take
measures for the removal of bottlenecks and the implementation of
projects under the programme and has appointed the Mumbai
Metropolitan Region Development Authority (MMRDA) as the nodal
agency for the approval of all projects under the programme and
granting single window clearance. So a beginning has already
technology to developers so that they can keep cost of production of
been made. houses low?
What kind of commitment do you feel is needed from private sector The Building Materials and Technology Promotion Council (BMTPC),
developers? an autonomous organisation of the ministry is already actively
There is more that can be done in a country of our size. One of the involved in the facilitation of cost-effective building technologies.
areas where we need the private sector to play a bigger role is in There is also in the pipeline a scheme for the promotion of the
affordable housing for lower to middle income groups. There is a Knowledge Network on Innovative Housing Technologies (KNIHS),
huge demand, especially given the rising middle class and expanding which, inter alia, envisages the benchmarking of the established
tier-II cities. There also need to be holding areas rather than just and approved technologies in the curricula of engineering courses.
megacities. So the private sector needs to realise that and step in.
I must say that some state governments that are forward-looking and
The meaning of 'affordable' also needs to be understood. If you willing to experiment are bringing in new technologies. For instance,
make a Rs 80 lakh houses instead of a Rs 1.5 crore house, it is still not some are going in for monolithic construction.
affordable for, say, young professionals.
As Government of India, we have to ensure that any new technology
I understand that developers tend to think that housing for the low that comes in is also cost-effective as well as friendly to the
to middle-income groups will not give them large profit margins. environment. The good thing about a free market is that you can get
Obviously there are some systems that have to be put in place to in technology from outside more easily, but at our end we have to
make it attractive for the private sector to get into. I feel, however, make sure it complies with certain norms.
that for the private sector, it is here that the economies of scale
In Maharashtra, there has been a recent announcement of public-
can work. private partnerships (PPP) to develop affordable housing? Are there
The other issue has been access to technology. Is the government any other successful examples of PPP for affordable housing? In
planning to provide some schemes that offer low cost housing your opinion, how can PPP be encouraged?
The recent announcement of the

MHRI and GOM collaboration is
another step in the direction of
PPP in affordable housing. There
are other models of PPP in
housing too, like Bengal Ambuja
Housing Development, a
collaboration between M/s
Gujarat Ambuja Ltd and the West
Bengal Housing Board; the HIDCO
Shapoorji Pallonji Alliance for
delivering affordable home to the
residents of Kolkata; the New Township Policy developed by the
Uttar Pradesh Housing and Urban Planning Department 'Awas
Bandhu'; Dharavi Slum Rehabilitation in Mumbai; and the concession
agreement signed between Jaiprakash Industries Ltd (now Jaypee
Infratech Ltd, the special purpose vehicle created as per the
concession agreement) and the Yamuna Expressway (erstwhile Taj
Expressway) Industrial Development Authority.
Private developers feel they cannot address the problem of housing

for the poorest sections of society. What are the government schemes
that are addressing this and how far will they be able to meet the
needs?
The Jawaharlal Nehru National Urban Renewal Mission

(JNNURM), launched by the government in the year 2005, focuses
on providing housing and basic services to the urban poor in 65
for Indian cities. Have schemes like the JNNURM truly encouraged
specified cities through the sub-mission Basic Services to the Urban
states/city corporations to improve the service delivery and
Poor (BSUP) and in other cities through the Integrated Housing and
governance models?
Slum Development Programme (IHSDP). By the end of April 2010,
From an urban citizens' perspective, the administration of the urban
there have been 475 projects approved under BSUP and 947 projects
local self-government impacts their lives more than any other tier of
approved under IHSDP all across the country, envisaging the
government. Therefore, reforms in the administration of the institutions
construction or upgradation of 1,022,689 and 502,281 dwelling units
of urban local bodies (ULBs) potentially have a significant positive
respectively.
impact on the quality of governance, service delivery and the overall
A new scheme, called the Interest Subsidy Scheme for Housing the quality of life.
Urban Poor (ISHUP) has been launched to make housing affordable
Under the JNNURM, the states have signed a tripartite agreement,
and within the repayment capacity of the economically weaker
along with the ULB and the Central Government, and reforms are a
sections (EWS) and low-income groups (LIGs). The scheme
part of the agreement. Funding is conditional to the implementation
encourages these sections to avail loan facilities through commercial
of reforms. Streamlining of the processing for public disclosure,
banks and housing finance companies for the purposes of the
administration of property taxes, use of IT under e-governance and
construction or acquisition of houses and avail a 5 percent subsidy
land-use reforms are some of many reforms that the JNNURM mission
in the interest payment of loans of up to Rs 1 lakh. The scheme is
has pushed through.
demand-driven and so far Rs 41.83 lakh have been released to the
In your view, how has the JNNURM scheme fared till now? What
National Housing Bank (NHB) towards the net present value (NPV) of
kind of butterfly effect will it have on the overall development of
the interest subsidy claimed by the State Bank of India (SBI), Indian
cities in the country?
Bank and the Central Bank of India in respect of the loans sanctioned
The integrated slum redevelopment approach if JNNURM for the
in Andhra Pradesh. The subsidy will benefit 603 households.
provision of shelter, tenurial security and basic services to slum
Further, with a view to encourage the allotment of land for EWS
dwellers has been widely welcomed as it has the potential to
under the scheme of Affordable Housing in Partnership, the Central
make the country slum free. The new programme that we are
Government provides assistance on a progressive scale vis-à-vis
implementing, called the Rajiv Awas Yojana (RAY), envisages giving
the built-up area earmarked for EWS and LIGs as a percentage of
property rights to the poor. This would enhance their stake in
the total constructed area. The assistance is available for the
democracy, law and order and wealth generation. The new
provision of civic services such as water supply, including ground
programmes we are now contemplating envisage a whole city
level and overhead service reservoirs, storm water drainage, solid
approach to tackle not only existing slums but also the factors that
waste management, sewerage, including common sewerage
lead to the creation of slums. This would translate directly into
treatment facilities, rain water harvesting, approach roads,
finding solutions for massive land and housing shortages that drive
electricity lines and so on.
prices beyond the range of the poor.
Infrastructure, urban services and city management are all challenges
Given that different departments collect data from their perspective
of need, is there some streamlined access to data to make planning speedy urban construction on the other.
for affordable housing easier and more effective?
It is hoped that the legislation will be helpful in the healthy growth of
There will be a streamlining of information because the Planning
the real estate sector and at the same time check the activities of
Commission is going to conduct a survey of the urban poor. So it will
unscrupulous people who exploit buyers. Builders and developers
all come together there. We are also eagerly looking forward to the
need to share more information with the public and consumers, so
Unique Identification Number (UID). By itself, the UID is just a number
that everybody takes a considered decision in the light of available
that each citizen will have. Its real impact, however, will be that it
information.
will help the government in more effective delivery of its schemes.
What would be your message to the thousands of real estate
Even the RAY will be implemented after proper surveys and after
developers across the country in terms of where they should focus
developing planning models. Already Rs 70 crore has been earmarked
their efforts and what are the opportunities they should look at in
for the preparatory phase, which will include these surveys to identify
today's context?
the correct beneficiaries for it. The urban affordable housing segment is the largest chunk of the
What is the status of the Real Estate Regulatory Bill? When will it get domestic housing market and is distinguished by being a steady and
implemented and have the concerns of the real estate developer growing demand that will not shrink or fluctuate with the share
fraternity been addressed, in your opinion?
Unveiled as an item under the 100 Days' Agenda of the Ministry on
June 30, 2009, a draft of the Model Real Estate (Regulation of
Development) Act 200_ was prepared and put in the public domain
by the Ministry in August 2009 to invite comments and suggestions.
Responses poured in and continue to be received well after the

November 6, 2009, deadline. More than 350 comments were received
from real estate associations, real estate developers, consumers
and state governments.
These have been discussed with select state governments in March markets or the global economy. Private developers need to exploit
2010 as well as in a series of workshops in April 2010. The second the long-term entrepreneurial and business opportunities that lie
draft is shortly being placed before a wider group of states, developers locked in affordable housing. PPP is an ideal vehicle. In a PPP, the
and experts in another round of consultations before being finalised. strength of the public sector which controls land and its regulatory
The point about involving stakeholders like ULBs and financing and legal powers are combined with the initiative and resources of
organisations is well taken. We realise that they need clearances in the private sector and its efficiency. Their strengths thus get
a time-bound manner and there are times when some people lose synergised to far greater effect and productivity. The PPP approach
out for no fault of theirs and they incur losses, sometimes passing will allow the state agencies to overcome resource deficit, improve
cost recovery and increase the supply of houses on a demand-
them on to the end-customer. We are trying to iron out these problems
driven basis.
to ensure that the customer does not suffer in the end.
What have been your experiences with CREDAI over the years and
That is why we are trying to formulate this model act. There is a lot
what do you think of the organisation?
of pressure these days on the state governments as well and this act
We look upon CREDAI as a partner. I am of the opinion that unless
will give them the flexibility to take what they need and modify the
the private sector and the government work together, we won't get
model act to suit their requirements.
anywhere. We can't work at cross-purposes. I share a good
From an overall policy perspective, would it be possible to assure
relationship with CREDAI. It has called me to speak at several
our readers that your government is committed to removing the
occasions and I have met most of the office-bearers and other
roadblocks and ensuring that the housing industry can pursue their
members. I found them all to be very enthusiastic about affordable
work in a regulated, but unhindered fashion?
housing. I have met developers who are very sincere about wanting
The draft Model Real Estate (Regulation of Development) Act 200_
to develop affordable housing. And over the years we have come to
has been conceived by the Ministry to promote planned and healthy
trust each other immensely, so when they say they are serious about
real estate development of colonies and apartments with a view to something, I am sure that they really are.
protect consumer interest on the one hand and facilitate smooth and
CREDAI - Karnataka Initiative
Bangalore Impact - A Campaign for UIDAI - Aadhar
(IN ASSOCIATION WITH BUILDERS ASSOCIATION OF INDIA AND OTHER CONNECTED ASSOCIATIONS)
Organize seminars at
T
he effort and the concept of Unique Identity for residents
of the country impressed the members of CREDAI all association centers
Karnataka. For the Industry plagued with myriad of CREDAI and BAI
problems this concept of recognizable identity will enable with specific pre-
address most of them, if not fully. Since the Industry is the second prepared agenda and
largest employer event.
and still Discuss and finalize in
unorganized, the consultation with
effort in creating UIDAI the simplified
identity to 50 recruitment form for
million odd group registration
construction through their S.Suresh Hari

work force is a respective employers/ Secretary - CREDAI Karnataka
herculean task. Sensing the prospects of CREDAI involvement in the Associations.
exercise, Past President Ramani Sastri entrusted the task of creating Create networking mechanisms with BAI and other similar
a platform to address the issue to me. Under the chairmanship of associations for implementation of the programme.
Mr.Balakrishna Hegde I was given the task of organizing an interactive Fix target date for completion.
session with the concerned associations. The proximity to connected Regular review between various associations.
associations enabled me easy identification of target audience in CREDAI will lead the campaign and will be the link between
our effort. We invited all the Center Chairmen of Builders Association UIDAI and other involved Associations.
of India (Southern Cities) along with all the CREDAI center Chairmen Form core group to monitor the implementation.
of 4 Southern States. CREDAI HQ to keep update of progress and report at regular

intervals.
The campaign was organised on 19-4-2010 at Hotel Lalit Ashok,
PR Exercise by CREDAI through various means.
Bangalore
The arrangements and the concept presentation by us were greatly
The presentation was made by the Honorable Chairman Shri
appreciated by Sri. Nandan Nilekeni. He had assured necessary
Nanadan Nilekani himself. We at CREDAI Karnataka set the stage
support in our effort and all the delegates assured full support to the
for the campaign and hosted the event in Bangalore.
effort. Similar effort for the other three zones is planned at the
The Mission appropriate time involving all the Construction fraternity for proper
The role that the Authority envisions is to issue a unique identification implementation. The 50 odd participants who are chapter heads of
number (UID) that can be verified and authenticated in an online, BAI and CREDAI of Southern States appreciated the effort and have
cost-effective manner, and that is robust enough to eliminate duplicate assured full support to CREDAI's efforts. The campaign by CREDAI
and fake identities Karntaka had its real impact and the media fully reported the event
with positive mileage to the Association.
Purpose of the Campaign: (Bangalore Impact)
To work in liaison with UIDAI in propagating the scheme to
target residents of the country- the construction work force.
To educate through member association and members the need
to register the target residents
To act as catalyst in coordinating the effort for registering the
target residents.
To involve Association and members in the actual registration
process
Way forward:
Enlist complete support to the effort from the various Associations.
Best Practices
Meridian City, USA: Inspiration
for a 21st century city
eridian is nw Strengthening the heart
M the third
EDITOR'S BOX
As development spread on the outer fringes of the city, MDC had
largest city in This new series will look
taken on a new challenge by bringing the people back home to the
Idaho, USA. at examples from across
inner city. The new City Hall was among the first to be built and
T h e the world that can inspire
trigger development. Many of the city's services were consolidated
population grew a huge 81.5% developers in India. In this
here. Downtown began to mean a vibrant, walk able place to be in.
from 2000 and the head count case, the transformation of
New projects just added to the convenience and pleasure.
now crosses 73,000. The growth Meridian from a sleepy
comes from the city's vision, to The Ground Floor: Powered by Vengaworks
rural town to a bustling hi-
offer a premier place to live, Attracting Idaho entrepreneurs and business professionals to
tech city can easily be
work and raise a family. And it Meridian's business city centre is the 3000 sq ft Smart Work Center.
achieved in India by a
is with this foresight that we see The project is financed by MDC. The area offers enterprise class
smart integrated township
a diversifying local economy, a infrastructure, private and collaborative work spaces, meeting rooms
development.
workforce under training and with high-definition video systems, digital-media-equipped training
other moves to develop a and seminar space. Members, residents and workers can use the
connected community. At the helm of affairs is Mayor Tammy de
space for a monthly fee.
Weerd.
By location and the facilities it offers the project bridges the gap
Blueprint for transformation
between the home office and a central office. Users get access to
Setting up an urban work environment to encourage economic
tools and services they require for improved productivity; and all this
stimulation, with the expansion of downtown Meridian, while
is at a downtown location that is a convenient commute.
connecting to a greater business community across the state was
one of the targets. The Meridian Development Corporation (MDC) Innovation corridor
with its independent role as an urban renewal agency,was set up Furthering plans of their long-term growth strategies for economic
with a Board of Commissioners. The assignment: to establish the development, environmental measures and community initiatives
most technology and business minded city in the region. will be the 'corridor development' downtown for the Health Sciences
The Smart Business Ecosystem (SBE) was developed in association and Technology Corridor (known as "The Core"). This 1,800-acre
with Vengaworks to come up with office space in high-performance project would include a new 60,000 sq ft acute care hospital and
buildings. New jobs created in businesses working to make the Idaho State University's Meridian campus. Several other corridors
building more energy efficient are also leveraged. are being researched for business viability.
meridian-city-hall Meridian-idaho-welcome-sign
SERVICE TAX ISSUES -
POST BUDGET
N
ow that the EDITOR'S BOX
President Despite never ending confusions,
has already the author who is well known for
given her his ability to simplify the most
assent to the Finance complex issues, brings in as much
Act 2010 on May 8, 2010, clarity as possible.
the amendments to the
existing service tax provisions have already come into effect from
that date, including those related to Construction of Complex services,
By S Sivakumar, Director, S3
Commercial or Industrial Construction services and Renting of Solutions Pvt Ltd, Bangalore
Immovable Property services. The purpose of this piece is to look at
the possible controversies and issues that might arise, post Budget,
the absence of a clear Notification/Circular from the CBEC, which
concerning the Realty Sector.
has not been issued, as aforesaid. Moreover, we must remember
1. Changes in the Abatement Scheme on service tax - land value that, when service tax was first levied on 'Construction of Complex'
cannot be included services effective from June 16, 2005, the Board had clarified vide
The President has given her assent on May 8, 2010 to the Finance Act Letter No. F.No.B1/6/2005-TRU dated 27-7-2005 that, service tax would
proposals, passed earlier by both the Houses of Parliament. The be payable only on the gross amount charged by the service provider
Finance Minister had announced on the floor of the House on April for the construction service provided and it would not include the
29, 2010 that the Abatement Scheme the Abatement Scheme for the cost of land and stamp duty paid for registration of land'. Hence, in
construction industry is being amended to provide that service tax is my view, there is absolutely no way that the land cost could be
now payable only on 25% of the amount received and that too only in brought into the service tax net.
cases where the gross value includes the value of land constructed
Very interestingly, no changes have been announced for the Works
upon. The exact wordings used by the FM, in his Budget speech, are
Contract Scheme. Hence, the Occupancy Certificate related logic
reproduced below:
does not apply to the construction contracts, which have been
"The construction sector has requested for a review of the changes classified under the Composition Scheme applicable to Works
in the service tax law proposed in this year's Budget. Several Contractors.
suggestions have been made by the trade associations. Considering
2. Developers/Builders can opt for any of the three schemes
all the inputs, I propose to provide tax relief to this sector by enhancing
As things stand now, post Budget, Developers and Builders have
their rate of abatement from 67% to 75% of the gross value where
three options or schemes, under the service tax law. They can opt to
such value includes the value of the land constructed upon. Certain
pay service tax under 'Construction of Complex Services', which is
procedural bottlenecks relating to the completion certificate
in the statute book since June 16, 2005. In terms of the Abatement
prescribed in the law would also be simplified." Of course, we would
Scheme applicable to these players, service tax is to be paid on 25%
need to wait for the Notification from the Government, on this increase
of the gross value received, in terms of the FM's Budget speech,
in the abatement value, which can only apply prospectively.
from a date to be notified. Alternatively, they can opt to pay service
There seems to be some confusion here in terms of the value of the tax under Notification No. 12/2003-ST dated 20-06-2003, as per which,
land, in as much as, the Abatement Scheme covered by Notification the service provider is exempted from paying service tax on the
No. 1/2006-ST dated 1-3-2006 never included the value of land, in the value of goods sold/transferred. The benefit of this Notification is
first place. In fact, it would be unconstitutional for the value of land very much available to Developers/Builders/Works Contractors.
to be included for the levy of service tax by the Government. One Alternatively, the Realty players can opt to pay service tax under the
does not quite understand then, the import of the FM's statement, in Composition Scheme, applicable to works contractors.
I've tried to summarize the merits and demerits of each of these Schemes, in the table given below:
Issue Abatement Scheme-Notn. 1/2006 Notification Works Contract-

No. 12/2003 Composition Scheme
Does gross amount include No, despite FM's No No

value of land value statement in Parliament
Value of gross amount 25%, from date of notification 30% Not Applicable
on which ST leviable
Effective rate of service tax 2.575%, from date of notification 3.09% 4.12%
Is cenvat credit available No, with effect from 1-3-2006 Yes Yes
on service tax paid on input service?
Is cenvat credit available on No, with effect from 1-3-2006 Yes Yes
excise/CVD paid on capital goods?
Is service tax leviable on the free Doubtful, in the light of decisions of No Yes, in respect of
supply of materials by Developers? Madras and Delhi High Courts. contracts the execution of
Department however is issuing Notices which has already started
on orafter 1-7-2009
Is the Developer/Builder required No No Yes

to exercise his option and
inform the Department
Can the Developer/Builder change to Not Applicable and Not Applicable and No
another scheme, once he Developer/Builder Developer/ Builder can
has exercised the option? can change any time change any time
The major disadvantage associated with the Abatement Scheme is 3. Impact of Budget amendment on 'Construction of Complex' services
that, cenvat credit is denied in respect of service tax paid on input on ongoing and new projects
services and excise/CVD paid on capital goods, unlike the other two As we know, the President has already given her accent to the
schemes. Though the Department has been taking a view that the insertion of the Explanation to Sections 65(105)(zzzh) and Section of
benefit of Notification 12/2003-ST dated 20-06-2003 cannot be extended the , due to which, the scope of 'Construction of Complex' services
to Developers and Builders, the Bangalore CESTAT, in the case of and Commercial or Industrial Construction Services is now expanded
Sobha Developers Ltd v. CCE & ST [2010] 24 STT 425 (BANG. - CESTAT), to provide that, unless the entire payment for the property is received
has categorically held that the Developer is entitled to the benefit of post the completion of the construction of the flat/commercial
Notification No. 12/2003. property, as evidenced by the Occupation Certificate, all contracts,
irrespective of whether they are agreements of sale or agreements
Developers who have contracted out the construction activity would be
of construction, would be treated as taxable services. The FM has
better off, going under Notification No. 12/2003 or the Composition
assured to look at alternatives to the Occupancy /Completion
Scheme for Works Contractors, given the significant benefit arising
Certificate. The text of the Explanation, as passed by the Parliament
out of cenvat credit. Developers and Builders would be well advised
is as follows:
that they are entitled to follow any of the above referred schemes in
respect of each of their contracts. There is a wide spread incurred "Explanation.-For the purposes of this sub-clause, the construction
belief that the composition scheme has to be opted for, in respect of of a new building which is intended for sale, wholly or partly, by a
each project. This is not quite true, in as much as, every contract for builder or any person authorised by the builder before, during or
construction of a flat is a works contract and consequently, there are after construction (except in cases for which no sum is received
as many works contracts as there are flats, in a housing project. There from or on behalf of the prospective buyer by the builder or the
is a stipulation that a Developer cannot changeover to the works contract person authorised by the builder before grant of completion certificate
scheme, in respect of a contract for which service tax has already by the authority competent to issue such certificate under any law
been paid under 'Construction of Complex' services as of June 1, 2007. for the time being in force) shall be deemed to be service provided
No such conditions exist, in respect of Notification No. 12/2003 and by the builder to the buyer;"
consequently, the Developer can always shift to Notification No. 12/
The important question that arises here, is, whether this explanation
2003 from the Abatement Scheme at any point of time.
is prospective or retrospective? The Department is very likely to take
the view that, this explanation will have retrospective effect, and in the L & T case 2008-TIOL-186-SC-CT.. In this case, it has been has
would cover all existing contracts also. In my view, such a stand been submitted that an agreement to sell a flat should be differentiated
would be untenable, in the light of the Apex Court's judgment in the from a works contract and that, the law laid down by the Supreme
Martin Lottery Agencies Ltd case [2009 (14) S.T.R. 593 (SC)], wherein Court in the K Raheja Development Corporation case 2006 (3) S.T.R.
it had been held that, an explanation having the effect of casting or 337 (S.C.) should be distinguished. The simple logic is, what cannot
widening the liability on a person can only be prospective in nature. be a works contract under the VAT law, cannot be a works contract
Hence, this amendment will not affect projects already completed under the service tax law, as well. Should the Apex Court hold that
prior to the date of the coming into force, of this explanation. But, the an agreement to sell a flat is not a works contract attracting VAT, the
position could be a bit tricky in the case of existing or running housing levy of service tax under 'Works Contract' services, in the case of an
projects. It would be very difficult to take the view that the Explanation agreement to sell a flat, would fall 'flat'. If an agreement to sell is not
cannot be applied to existing or running housing projects. While a works contract under the VAT law as well as under the service tax
discussing the impact of this explanation, we should bear in mind law, it cannot be subjected to service tax under 'Construction of
the fact that, this amendment, which is prospectively applicable Complex' services, as well. What is exempted under a specific head,
from the date of the passing of the Finance Act, 2010, would effectively cannot be subjected to tax under a different head. The Supreme
nullify the impact of Circular No. 108/02/2009-ST dated January 29, Court's decision in the L & T case would therefore assume a lot of
2009. Irrespective of whether agreements of construction or importance and will have wide ramifications on the levy of service
agreements of sale are entered into, Builders and Developers would tax on the Realty sector.
now be liable for service tax, so long as, the entire amount from their 5. Can the Department recover interest and penalty from Landlords/
customers are not received after the date of the Occupation Lessors
Certificate("OC") and so long as they are rendering services under As we know, many Landlords and Lessors had stopped paying service
'Construction of Complex' services. All agreements classified under tax, on the basis of the Delhi High Court's ruling in Home Retail
'Construction of Complex' services, whether for construction or for Solutions v. Union of India 2009(14) S.T.R. 433 (Del.). With the Finance
sale of flats, etc. would now be covered under service tax levy, so Act 2010 having been passed, the retrospective levy on renting
long as monies are received before the date of the OC. In fact, on the services has already come into effect. One major concern arising
face of it, even agreements for sale of readymade flats, entered into out of the passing of the Budget is the introduction of the validating
prior to the OC date, would be covered under service tax. This view provisions, as per which, the Department is entitled to recover interest
gets strengthened when one goes thro' the TRU circular D.O.F. No. and penalty, in respect of Landlords/Lessors who have not paid the
334/1/2010-TRU dated 26th February, 2010, wherein, the amendment service tax on the rents received by them. Of course, in cases where
has been listed under 'Alteration or Expansion in the scope of taxable no Show Cause Notices have been issued, the Landlords/Lessors
services' and not under 'New Services included in the list of taxable would be well advised to discharge their service tax liability along
services'. Hence, in my view, while the amendment related to the with interest, taking the advantage provided by the amended Section
levy of service tax linked to the Completion/Occupancy certificate is 73(3) of the Finance Act, 1994. In cases where Show Cause Notices
prospective, the levy of service tax under 'Construction of Complex' have already been issued, the Landlords/Lessors would need to fight
services continues to be applicable even prior to this amendment, these out, in respect of penalty.
notwithstanding the Circular No. 108/02/2009.
Before concluding.....
4. Confusion continues vis-a-vis Works Contract services Very unfortunately, the Budget does not seem to have brought about
As we have seen above, the Budget has not touched the scheme of any clarity, in respect of the service tax provisions concerning the
levy of service tax, for Works Contract services. Even the infamous Realty sector. On the other hand, a host of new issues and
Circular No. 108/02/2009-ST dated January 29, 2009 was issued to controversies have been created, including the reference to the
clarify the scope of service under 'Construction of Complex' services. value of land under the Abatement scheme, in the FM's speech.
Hence, the scheme of levy of service tax under 'Works Contract' From the perspective of the Developers and Builders, it would be too
services has more or less remained, except for the amendment dangerous not to collect service tax on their housing projects, even
introduced in respect of inclusion of the free supply of materials by for the period prior to May 8, 2010. Developers and Builders, not
the Developer in respect of contracts in respect of which, the paying service tax, would now run the risk of being levied penalties,
execution has already commenced on or before July 1, 2009. The in addition to the mandatory interest for the delayed period.
definition of a works contract, under the service tax law, is based on
Of course, the Developers and Builders can make an intelligent use
the definition given in the state VAT law. Whether an agreement to
of the three schemes that are available to them and optimize their
sell a flat could be considered as a works contract and consequently
service tax payments.
be levied sales tax/VAT, is already before the Hon'ble Supreme Court,
EARNED VALUE MANAGEMENT
IN CONSTRUCTION PROJECTS-
AN INTRODUCTION.
C
onstruction frequently asked
Industry, not only in EDITOR'S BOX questions to assess the
India but all over One of the most respected
success of a project
the world Project Management
namely:
traditionally has had a bad Consultants details a
more efficient Project Time parameters:
reputation for time and cost over
Is the project
runs. Project management Management system.
ahead or behind
professionals have always been
schedule?
looking for better ways of
Likely completion
managing these aspects of the construction industry. It is often felt that
date of the project.
other industries have better ways of managing these dimensions and
Is the time being
great amount of effort is spent in to identify a tool that meets this
used efficiently. Mr. A N Prakash, Managing Director,
requirement without realizing that great difference in culture that exists
Cost Parameters: AN Prakash Construction Project
between the other industries as compared to the construction industry.
Managements Consultants,
As of now is it
Earned value analysis was formalized as a cost control tool in the Bangalore
under budget or
US defence as early as 1960s. The use of EVA (Earned Value Analysis)
over budget?
for cost control and management gained popularity with the
What is the cost of the pending activities?
application of PC for processing of data.
What is the final project cost likely to be?
Earned Value Management (EVM) has been used widely in many Will be over the budget or under the budget?
industries such as defence, IT, phrama, oil and gas to name a few,
On application of EVM, if the project manager finds that the project
the construction industry is just now starting to pick up on this
is running behind schedule or over the budgeted cost, the project
technique.
manager can use the same methodology to identify problem areas
EVM is a three dimensional tool. It compares the work planned with and identify critical areas and what should one do to put the project
the amount achieved and finally compares this with the 'cost' of that back on track.
achievement. Cost management on construction projects includes
As it has always been the case in the construction industry, adaptation
the planning of the budgeted costs and their control. This is related
to use of any new tool or process for the betterment of project
to all the knowledge areas of the project. The actual costs are
performance monitoring has been an uphill task. Professional in the
related to the work performed, but, the work performed is not often
industry must make an effort use these tools which would certainly
related to the work scheduled.
help in managing the uncertainties in a construction project.
The purpose of this article is not to teach how EVA calculations are
It is needless to say the success of the application of EVM is dependent
done but to highlight the importance of using EVM as a tool to
on the accuracy of the information on which the analysis has to be
monitor construction projects in a better and more realistic manner.
based upon. It is imperative that project schedule should be logic
To quote 'Practice standard for Earned Value Management' of PMI linked and have the critical path and the milestones identified. All
(Project Management Institute) EVM has been called " management the activities have to be identified in detail and also cost of each
with the lights on" because it can help clearly and objectively activity specified.
illuminate where a project is and where it is going - as compared to
Those who are interested to know more about the application and
where it was supposed to be and where it is supposed to be going.
use of Earned Value Management may refer to "Practice standard
EVM can play a very important role in answering some of the for Earned Value Management" by the Project Management Institute.
Exploration Of Rain Water
Harvesting At Macro Level
he sinking ground
T
EDITOR'S BOX
water table in cities
Simplest and most
and urban areas is
practical solution for
certainly a matter of recharging the ground
great concern. The tremendous water which can also
increase in population (especially prevent flooding in
in the suburbs and extended urban areas is discussed
in this article.
suburbs) has put great strain on
services especially on water
Jashwant B. Mehta
supply for the city as a whole. A Consulting Engineer who has
authored many books on varied topics.
While the awareness for rain water harvesting has increased of
late, we must also think of having ways and means of exploring this
It would be worthwhile seriously exploring the possibility of having
at macro level to avoid the impending crisis. With more and more
openings at certain fixed intervals in the storm water drains with pits
buildings coming up and almost every plot / property being built
underneath these opening of suitable depth (atleast 2 mtrs. in depth)
upon the open areas in all these developments are paved and
below these openings (see illustration) which would allow percolation
rainwater which was being absorbed in the ground during earlier
of the rain water flowing in these drains in the ground. Provision
times is now being discharged in storm water drains ultimately
will have to be made for providing an inspection chamber above
finding its way in the sea. This is the single most important cause of
these pits so that before the onset of monsoon, the tress leaves,
lowering of underground water table mainly in the suburban areas.
debris or mud etc. that may have accumulated on these pits can be
The excessive discharge of rain water entering these storm water
cleared. Such openings and pits could also be provided in the
drains and resultant overflow of these drains has also created
internal storm water drains of large housing colonies and industrial
problems of water logging especially during days of heavy rainfall in
and commercial complexes. Apart from tremendous help in raising
the monsoon in several areas in the suburbs.
the ground water table throughout the city, it will also help a great
deal in controlling the
flooding during the
heavy rainfall by
relieving the excessive
strain on the overloaded
storm water drains.
Over a period of time the
flooding during heavy
rainfall has now
become a recurring
phenomenon in most of
the suburban areas of
the city. In areas nearer
the sea, the spacing of
such pits could be nearer to reduce the salinity. places including even leakages from the sewer. In fact, Bombay
Municipal Corporation itself permits the well water received from
The step suggested would be one of the easiest and cheapest ways
any source to be used for flushing purposes. It is natural that the
to harvest rainwater at macro level for cities and a very cost-effective
water before entering any open well or tube well always gets
solution to prevent the impending water crisis for the city. With an
filtered through the soil and therefore it is atleast fit for flushing
average of 200 cm of rainfall for an area of mere 5 sq.km. of rain
purposes. The requirement for flushing purposes amounts to 35-
water percolating in the ground would amount to a staggering 10
40% of our total water consumption. A project like this should be
billion litres of water! Doubts have been expressed about the quality
accorded the top most priority as the most vital of all infrastructure
of water entering the soil. However, even the well / borewell water
projects for the city.
which in any case holds underground water percolated from all the
Using the sun to sterilize water

(BASED ON BBC NEWS DTD. 22ND MARCH, 2006)
ven after 60 years of independence, a large majority
E of our rural population is deprived of clean drinking EDITOR'S BOX

water. A very simple and effective way to solve the Author reveals a
problem could be to use solar radiation which means simple way to purify
a combination of ultra-violet rays and heat. This would contaminated water
destroy the bacteria which cause common water- for drinking purposes
borne diseases like cholera, typhoid, dysentery and diarrhoea. specially in rural areas.
By filling the water in plastic or glass bottles and putting them on
black painted roof for a day would solve the problem of having safe drinking water for our rural
masses. Normally, after eight hours in the sun, the water is suitable for drinking purposes. The
only precaution required would be to have it filtered for which even a clean cloth would suffice.
Lots of villages in Africa have started implementing this.
Considering the acute problem of drinking water in our country, information like this is
required to be circulated in a big way. (It may be mentioned that this will not remove the
visible impurities such as dust particles, etc. for which filtration through a clean cloth
would be recommended which is normally a common practice in our country).
India's Real Estate Sector
In Quiet Revolution Mode
equity funds quickly and
D
evelopers in the real estate
sector have, perhaps, been EDITOR'S BOX service debt in times of
far too closely engaged in India's real estate stretched liquidity.
the thick of business to sector is on the From an unorganised
notice the strong, but quiet, threshold of a new setup to
undercurrents of critical change that era, if the numerous institutionalisation
have been sweeping across the sector critical changes In response to the
in the past five years. Clearly, these unfolding in the changing external
changes portend the start of a new era environment,
sector are any
for the sector. Indeed, these changes developers have opted
indication.
have been in the nature of quiet to move from an
upheavals, and developers have already informal, centralised,
Akash Deep Jyoti
begun to tackle the micro-level fallout of change on individual businesses. unorganised setup
Head, Corporate & Infrastructure Ratings,
The changes may be classified as demographics-, organisation-, or t o w a r d s
CRISIL Limited
funding option-related. institutionalisation of
'Demographic dividend' to drive demand their organisations. The
Demographics form the foundation for real estate growth, while move towards institutionalisation has included steps such as the
other factors serve as enablers. The customer profile has, in the past introduction of professional CEOs and other functionaries, release of
seven years, veered increasingly towards the growing, young, financial results on a quarterly basis, adoption of the latest
working population, with strong incomes, and a large appetite for construction technologies, willingness to dilute equity to private
mortgage loans. The trend is expected to continue over the next few funds, openness to scrutiny by external stakeholders, reduction in
decades, and be the key driver of demand for real estate. In fact, the grey sales transactions, and enhanced transparency in sharing
study, 'Global Demographics 2009' (of Urban Land Institute), forecasts information with customers. These moves have equipped players in
that over the next 40 years, the largest increases in population the sector to tackle the rapid changes sweeping across the sector. It
worldwide will be in China, India, and the US. The governments' has also helped distinguish the corporatised market players from the
policies and focus on health and education will only accelerate this unorganised ones, and to improve the overall perception of the sector
trend. The demographic shift towards a younger customer profile to an extent.
will be a game-changer, and has the potential to change the section Genesis of a new-age real estate sector
of population that was once considered a 'liability' into a Going forward, the real estate sector will increasingly move from
'demographic dividend' driver in future. mere construction of buildings to real development. The sheer
Profusion of financing options backs deliverability magnitude of real estate demand will entail a shift from in-house
The universe of funding has expanded from the unorganised construction capabilities towards outsourcing to specialised, external
moneylenders to the entire gamut of sources, including loans from contractors. Government policies will ensure major reforms in land
banks and housing finance institutions, private equity, public equity regulations to enable availability of land with clear titles at affordable
offerings, bonds, and debentures. Customers have moved from funding prices. A multitude of real estate projects will be undertaken on
home purchases with their own resources, to bank-funded mortgage collaborative or partnership basis-between two or more developers,
finance. The shift has helped the real estate sector match the fast- between developers and government, between institutional
growing demand from customers, and enhanced the developers' customers and developers, between foreign and domestic
financial flexibility. In 2005, the Government of India (GoI) allowed developers, or even among all stakeholders including technology
automatic approval of foreign direct investments (FDIs) in real estate, providers. Integrated real estate development will also involve
subject to their complying with requirements related to minimum development of infrastructure. This will, in turn, move developers
development area, minimum investment options, and timelines for not only to the centre stage in the evolving landscape in India's real
project completion. FDIs in the sector increased from a paltry USD0.1 estate sector, but also to the global arena.
billion in 2003-04 (refers to financial year, April 1 to March 31) to Conclusion
USD27.1 billion in 2008-09. In 2006, events such as initial public Growth opportunities for India's real estate sector have multiplied
offerings by real estate companies, and the listing of such companies several fold with the changes sweeping across it. These changes
on the national stock exchanges became frequent. Real estate players have enabled players in the sector to become more resilient, and
also began to tap qualified institutional investors in 2009 to raise will pave the way for robust economic growth in India.
Book Extract
SPACE FOR SHOPPING

By A.K. JAIN
Revamping the
Connaught Place: The
Hub of Delhi
s ir Edwin Lutyens
lent India a place
of pride among
EDITOR'S BOX
Should
perpetuate
we not
the
the countries with great legacy of
capitals, like, Washington, outstanding urban

planning and
Paris and Canberra.
architecture as
Lutyens' design of New
showcased by
Delhi is an architect's
Lyutens, Delhi.
tribute to India's greatness.
Originally New Delhi was
laid out on a garden city pattern to accommodate a
population of 65,000. The new city was planned
adjacent to Shahjehanabad, yet separated from it
by an open space buffer and railway enbankment.
Beyond this, New Delhi was laid in a geometric
pattern over a triangular base formed by three major
functions, viz., commercial, governmental and
recreational. Connaught Place, Government
Endow your thoughts with Faith, Your deeds with

Courage, Your life with Sacrifice, So all men may know
the Greatness of India.
with lower and middle income
employees to the north of the
Central Vista and senior British
officials to its south. To the south
of the fashionable shopping
centre of Connaught Place and
along river Yamuna, the India
Gate, National Stadium and
recreational activities were
planned.
The design of the New Delhi was

conceived as a combination of
two separate and distinct
geometric systems. The
monumental grid is comprised
of the Central Vista; with the India
Gate as a symbolic entry on the
riverside, while the capital
complex and Viceroy's Place on
the Raisina Hill. The other
geometric system comprised of
a hexagonal pattern, which
linked the governmental,
commercial and recreational
activities with the residential
areas. The hexagonal grid
complex (Viceroy Palace and

Secretariats) and the India Gate were the
respective centres of these major
activities.
The Connaught Place was conceived as

the city centre, with its location in the
geographical centre of Old and New Delhi.
It was to act as a link between two Delhis
and a Railway Station was laid adjacent
to it in order to link the city to the region.
The centrepiece of the plan was the
Central Vista with Viceroy Palace on the
Raisina Hill and as a focal point for the
entire city. The residential areas were laid
provided a visual continuity of the new city with the monuments of near Jai SinghPura on one side and Barakhamba on the other.
ancient capital, like, Purana Qilla, Jama Masjid, Safdarjang Tomb, Barakhamba was baradari near the mosque opposite the present
Ferozshah Kotla, Lodhi Tombs etc. The whole city covering about Yusufzai Market.
3200 acres, was nestled between two ecological features: river
In the beginning, the Inner Circle was the main market. The Outer
Yamuna on the East and the Aravali ridges on the west. Lutyens
Circle took sometime to develop. The partition of India brought
conceived a garden city, with buildings below the tree heights,
quite a few problems in its wake and Connaught Place could not
except the government complex, India Gate and the ancient
escape its share. Displaced persons occupied every inch of the
monuments. Outside the monumental grid, the city was conceived
corridors of the market. NDMC had to declare these corridors as
as a vast park, with buildings hidden by the trees. The Viceroy Place
public streets. It then removed these displaced persons to markets,
and Secretariat Complex were planned to dominate the skyline of
which at that time, were termed temporary, but now have virtually
New Delhi which occupied the highest land of the Raisina Hill. A
become permanent. Panchkuian Market, Yusufzai Market, Janpath
visual link was conceived between the Viceroy Palace and the Jama
Municipal Market came into existence. Later Indian Oil Bhawan
Masjid, and the buildings in between the government complex and
Market and Mohan Singh Place developed. Then, during the
Jama Masjid, including Connaught Place, were kept below 48' height.
emergency, the underground Palika Bazar was constructed,
Designed by Robert T. Russel, Connaught Place with a diameter of followed by Palika Parking, with provision of shops in it. Today,
1100 feet has become a monumental shopping plaza. The pure white Connaught Place is surrounded on all sides by these markets.
buildings punctuated by Palladian archways complete the picture of Multi-storeyed towers and buildings started mushrooming all
elegant classicism. The designer had intended the effect of urban around Connaught Place, spoiling the landscape and creating
enclosures and desired circular continuity. Originally it had six blocks traffic problems. The Master Plan for Delhi came into force on 1st
with 585 pillars in the Inner Circle and six corresponding blocks with Sept. 1962. It emphasized the peculiarly dominant position of the
1,021 double columned pillars in the Outer Circle-all white-which Connaught Place and was declared to be the Central Business
would have certainly given it an ethereal quality in the moonlight. District of Delhi. The Connaught Place was planned to have an
Later at some stage 'P' Block, Scindia House and Janpath were area of 200 acres including the extended portion of 74 acres.
added.
The Zonal Development Plan divided the Central Business District
Connaught Place was built on a site carved out of a thick forest of into two parts (i) The existing Connaught Place, (ii) The Connaught
Kikar trees, which was originally a part of Jaipur Estate, Madhoganj Place Extension. The Extension part covering about 74 acres of
existing residential portion was put to intensive
commercial use with 400 floor area ratio. For
Connaught Place it was stipulated that the existing
height, lines and facades were to be maintained.
Buildings in the Middle Circle were to be
constructed on stilts keeping the ground floor
completely for parking. The inner circle was
proposed be widened to 120 ft. for channelization
of traffic and to meet additional parking needs. The
additional parking was to be created by providing
parking lots on the two vacant plots in front of Regal
Building and the LIC ground. Parking under the
ground was also to be provided in a portion of the
Central Park. For Connaught Place Extension area
it was envisaged that channelization of fast and
slow moving traffic, segregation of pedestrian traffic
and of through traffic from local traffic, together
with adequate provision for parking will be
achieved.
No piecemeal development was to be allowed and

comprehensive development plans for each sector would be approachable from this walkway. Traffic control at the
were to be prepared. Pedestrian traffic was proposed to be street-level was to be achieved by restricting entry and exit points on
segregated by creating a 20-feet wide pathway, 12 feet above the the service road only and by segregating the local and through
ground. This pathway would run in from each of the property and traffic. There were to be no boundary wall between the properties.
would eventually link up to form a continuous pedestrian walkway. 50 percent of the plot area was to be kept for parking while the rest
All buildings were to be on stilts. Shops, showrooms and restaurants must be used and developed for landscaping.
Have A Glance Over Your
Shoulder Please!
t is true that this piece of
i
art and architecture,
EDITOR'S BOX
writing on the antiquity Arabian traveller
of Indian art, This article will help us Alberuni admiringly
architecture and pause, look back and take wrote in his travellogue
sculpture in the context of its inspiration from our that "our people, when
civilizational and cultural values incredible past to build a see them (Indians),
and heritage may sound a bit new India. wonder at them; and
odd, even as "William Baker" has are unable to describe
succeeded in building a monumental "Burj Khalifa", the tallest them, much less to
structure in this planet. Yet, Indians will miss nothing in peeping into construct anything like
their glorious past because our ancestry was second to none, even them…" and lo! Burj
in ancient and medieval periods with regard to architectural and By Dr. K. Shanker Shetty, Khalifa is there now on
sculptural achievements. An ex Banker and author
Alberunis land and
of many books on varied subjects
It was Sir W. W. Hunter, who wrote that "English decorative art in our Indians are unable to
day has borrowed largely from Indian forms and patterns. The build and construct anything like Arabs?
exquisitive scroll of the rock temples at Karli and Ajanta; the delicate Ancient Period
marble tracery and flat wood carving of Western India, the And remember, the ancient civilization of Indus, which is known to
harmonious blending of forms and colours in the fabrics of Kashmir, archeologists as the Harappan and Mohenjo Daro culture, depicting
have contributed to the restoration of taste in England". And yet the glory of our past did not owe a bit to the middle East or Chinese
believe me, under the present dispensation of pertensive civilization, civilizations of that era.
it is Indians who are aping the taste, style, décor and even values
Citizenry of Mohenjo Daro had built nine Strata of buildings, in
from the West in the sphere of art, architecture and sculpture.
commensurate with the rising level of earth, to avoid floods from
By observing of the magnificent works of Indo - Aryan traditions of Indus. In fact, the Indus valley architecture reflected a tradition of
continuity as could be visualized from the "unchanging architecture" The richness of Indian architecture could be found in south India in
of temple structures of that era. Even in 600 B.C they built 30 feet wide its historical edifices like lovely symmetrical shrine at Itargi in
roads dividing city into large blocks, constructed houses with Hyderabad; the temple at Somanathpura in Mysore in which gigantic
standardized burnt bricks of good quality, with two floors, having masses of stones are carved with delicacy of lace; and the
bathrooms which were provided with drains, which flowed into Hoysaleswra temple at Halebid which is "One of the buildings on
sewers beneath the main roads leading to soak - pits. The most which the advocate of Hindu architecture would desire to take his
unique feature in the new buildings is the great bath in the citadel stand". The artistic combination of horizontal with vertical lines and
area of Mohenjo Daro; It was an oblong bathing pool of 39 x 23 feet the play of outline and of light and shade far surpass even the delicacy
in area and 8 feet deep, constructed of beautiful brick - work, made of modern architecture of skyscrapers. Halebid near Hassan stands
watertight with bitumen and it could be drained by opening in one even today, as a testimony to the sterling qualities and perfection of
corner and was surrounded by a cloister on to which opened a medieval architecture in India.
number of small rooms. It is thus apparent that our ancestors, with
Ofcourse, we must admit universally and accept unreservedly that
zero level of science, knew the planning of a city, water supply,
patience and courage of our forefathers, in architectural pursuits
sewerage and architecture though in its crude form 3000 years ago.
was personified in Belur and Halebid. Similary, the great Virupaksha
Pona It is also believed that from the last days of the Indus valley temple at Pattadakal built by Chalukyas; Shiva temple built by Cholas
civilization a continuity was maintained in Indian art traditions, though in Tanjore; the Srirangam temple with its distinctive multi - pillared
there are no concrete evidence of such continuity until, we come to mandapam with a "Hall of thousand columns" each of single block of
know of Buddhist art in the age of Mauryas. Historically, the first granite elaborately carved; the marvelous architecture of Vijayanagar;
important movement in art and architecture started with Maurya the Rameshwar temple with its most imposing four thousand feet of
dynasty during 322 B. C. It was during this period that the artistic double colonnades, exquisitively carved and designed to give cool -
activities were encouraged specially in 'Gandhara' (now in Pakistan), shade and with an inspiring vision of sun and sea, and more of this
Mathura regions and Amaravathi in the lower Godavari valleys. type of architecture throughout India, even today stand as most
outstanding testimonials to the "architectural, artistic and structural
Medieval Era
excellence achieved by Indians in the medieval period.
History reveals the brutal reality that the ancient heritages of Indian
art, architecture and sculpture was destroyed to a great extent due It was made possible because unlike in the 21st century, which treats
to the fanatic destruction of those great achievements by the invaders. every art and architectural endeavours as commercial proposition,
If the Elephanta caves in Western India were partly smashed by the our ancestors treated the very concept as "a beauty divine" which was
barbarity of Portuguese, in the north the invading Moslems destroyed designed, shaped and chiselled into immortal pieces of legacy to the
the monumental manifestation of Indian sculpture and architecture posterity, providing a sense of peace and tranquility to the mind; feast
like Somnath temple in Gujarat during the fifth and sixth centuries to the eyes and above all greatest pride to Indian society. Of course,
with vengeance. The invaders had decapacitated statues and torn can we ever dream of providing such a moral and charaterised value
their limbs by limb; plundered pillars, images, gold, silver and even based satisfaction with the present day skyscrapers that we are
invaluable pieces of architecture which were transported to compelled to behold and livewith, in the present age?
Afghanistan and used them in the mosques. The beautiful pillars of
However, many western writers on art, have made attempts to lable
Jain temples which stood testimony to architectural finery were
Indian artistic excellence during the ancient and medieval ages as
razed to the ground. What is significant is that references are found
related to Vedanta or Buddhist religious beliefs. It is true that ancient
about the grandeur of north India's architecture, in the powerful
Indian's religious art differs distinctly from its religious literature.
edifices which survived the onslaught of invaders in south India.
But, ancient Indian art was the work of secular craftmen, who despite
The great tradition of 'temple architecture' in south India, found of Brahmanical directions, rendered their labour to achieve a secular
recognition only during the secular rule of Akbar. Furguesson, wrote objective of art and architecture can not be denied.
that there were about 30 famous architecturerally built Dravidian
Above belief can be further fortified by the fact that the Mauryan
temples which were as good as famous English cathedral during the
period monolithic columns prove that artistic craftmen in those days
middle ages. The South India had adopted the style of the north by
had a thorough mastery of working in stone. Subsequently "Stupas"
prefacing the mandapam or porch with a gopuram or gate and the
were built as the earthern burial mound was popularized by Asoka.
gopuram were being supported by multiple pillars, and having smaller
It was during the period of Mauryas and Guptas that "Buddhist
pieces of hundreds of symbols like swastika, sun, wheel of life,
architecture" was patronized increasingly in our country. The 'Bharhut
sacred animals and Gods.
Stupa' reported to have been built in second century B. C. is known
In terms of structural plan for these temples they had three primary for its sculptural excellence; when Ranchi and Amaravathi 'Stupas'
aspects viz: the gateway, the pillard porch and the tower "vimana". stand for their architectural perfection.
Similarly, architecture has the over powering movements of Hindu Pathan tribal origin and were known as Sultans. They were succeeded
genius at Bodh Gaya, Bhuvaneshwar, Madurai and Tanjore. It is by the Moghul dynasty founded by Barbar and undoubtedly it was the
always noted that Hindu architecture is impressive with its mass; Moghuls who materially influenced the art and architectural style of
Moorish architectural style and details; Sublimity of strength; it had the Muslim era in India.
the passion, taste and they covered their buildings with such statuary
At the same time, post sultanate period had witnessed the independent
that even a normal building looked like a piece of architecture.
kingdoms, during which period, architectural trends developed a
Sculpture during Medieval Period "form of building art" which was expressive of local ideals and
Indians down from ancient to medieval times, sculpted the stone peculiarities. This regional flavour of "Indo - Islamic" architectural
with pure and clear notion of instilling in them of a noble vision and trends took provincial shape reflecting socio - political environment.
message of true life. Accordingly, whereas Aryan artistic tradition
However, it is acknowledged that muslim rulers had greater
belonged to the beautiful stone pillars, and edicts displaying the
architectural instinct and they found mosques for the glory of Islam.
spiritual ambience, the sculptured art of Mauryan period exhibited
In cases like Ajmer, Ayodhya and Mathura, initially Islamic rulers
nobility of design, cultured form of expression and even technical
had tried to use and adopt the Hindu style of erecting three tier
success as can be seen in stupas.
pillars. Similarly the arches which the Mohammadans had built was
However, during pre - Gupta period, the architectural and sculptural on the pattern of Hindu Domes in temples.
pursuits in India, was visible through the cave temples excavated
It must be said that Kutb Minar, erected by Kutb - ub - din Aibak in
with meticulous, strenuous but dedicated efforts. This could be seen
1231 A.D., stands even today as the finest ever pillar built in the world
from the cave temples in Deccan at Bhaja near Poona, which has
with an height of 240 ft. and ornamented by four projecting balconies
high qualities with one of the largest and most famous artificial cave
with richly sculptured and engraved belts between and the whole of
carved out of single solid rock, with a deep hall, cut in solid rock
the lower three story's are cut - up by twenty four projecting ribs that
with a row of plain octagonal pillars near the walls, supporting
add the beauty and majesticity of Minar.
curved ribs carved to represent the barrel vaulting of wooden building.
One can not just miss the most spectacular and artistically built Firoz Shah Tughalq (1351 - 88) built many palaces, forts, mosques,
fabulous caves at Ajanta and Ellora near Aurangabad, in Maharastra, mouseleums, baths, universities and private and public buildings
which are hundred feet deep inside the rock. The Kailasanath temple reflecting Mughal architectural relevance. Mughal style of architecture
excavated under Rashtrakuta ruler Krisna (756 A.D.) is the most at Fatehpur Sikri, Delhi Fort and Taj Mahal at Agra stand second to
outstanding and impressive cave temple ever constructed in the none in their glorious depiction of art, architecture or sculpture.
world history. It is like a statue from hill - side, hall, gateway, votive Undoubtedly, the Mughal architecture had the unconcealing beauty.
pillars, many shrines and cloisters rarely seen anywhere in the world. Since Islam abominated images, the architects themselves confined
to floral and geometrical decorations in their works.
Medieval cave - sculpture was patronized mostly by Pallavas,
Chalukyas and Rashtrakutas in the south and in the northern, orissa Initially, neither the founder of Mughal dynasty Barbar nor his son
and Central - India the sculpture was more Brahmanical. The sun Humayun had encouraged new trend in architecture. It was the third
temple of Konarark reflects the tradition of the finest sculptural beauty. emperor Akbar, who provided a new meaning to the secular character
We can find here a combination of decorative sculpture with the of human and cultural relations between Hindus and Muslims and
architectural ensemble in all its glory and magnificence. Sun - temple encouraged traditional style of Hindu architecture. He built the
resembles of Sun - God's celestial chariot borne on strong wheels monumental work "Diwan - I - khas" or the "Hall of Private Audience"
and drawn by richly adorned caparisoned horses. Temples of in 1575, Strangely, he built his own Musoleum at Sikandra with full of
Khajurao (950 A.D.) have many features in common with the sun - architectural flavour. Shah Jehan, son of Akbar, created the immortal
temple in their sculpture and architectural efficiency. manifestation of art, architecture and sculpture in the form of "Taj
Mahal" which remains a vision of beauty, love and solace.
Muslim Architecture:
With the establishment of Islam and consequent Islamisation It was during 16th century that the Muslim style arches and
movement, it had given birth to new principles, ideas and practices architecture was developed in India with complete perfection. The
ushering into a new era in architecture in India and the same trend spacious tank at Sasaram built by Sher Shah, is probably is one of
continued for six long centuries. It is noted that Mohammadan rulers the best ever in the continent with a varanda crowned by an octagonal
in India adopted sarcenic architecture form the end of fifth century, dome.
though mostly, it was applied to mosques and tombs with different In the fifteenth century the facades of the mosques became much
styles by various dynasties. more ornamental with marbel and rich and beautiful sculptures.
The rulers of Delhi, for the first three centuries were of Turkian or However, despite of its greatness, Moghul art and architecture had a
declining trend after the rule of Jehangir.
Regretfully, in contrast to what our country has achieved through
ancient period, in the sphere of art, architecture and sculpture,
what we behold today in India and abroad is nothing but a
"matchbox" architectural accomplishment, terming it "modern art".
With due respect and regard to the current tribe of intellectually
primed, technically sound, artistically well disposed architects,
may I ask as to why should we, Indians ape the architectural
culture of the west? Luckily, we are bestowed with one of the
richest legacy from the periods of our ancient ancestors.
Why not adapt at least some of the features of those noble
ideas into our so called modern architectural ventures? Is
it not a stark reality that neither within India nor elsewhere
in the world, could we repeat "another Taj Mahal" or
"Kutb - Minar" or "Ajanta Caves" or "temple of
Somanathpura" or "Konarka Sun Temple" or the "Glories
of Belur and Halebidu" or a "Vijaya Nagar"?
Therefore, Indian fraternity of architects must

introspect and make sincere attempts to
decommercialise their professional pursuits beyond
a certain point and strive to harmonise the glorious
past with the present for the better future. Our
forefathers, since the Indus valley civilization
have proved the fact that Indians are capable
to be "second to none" even in the sphere of art
and architecture.
Therefore, even while practicing modern

architecture in designing, structural
consultancy, industrial and commercial
ventures, institutional and building
services, interior and layout designing,
planning landscapes and residential
layout, let there be an awareness about
the need to have a glance towards
our historicity, by all practioners so
as to achieve a better product into
the future.
Therefore, there is an imperative

need for the architectural
fraternity that even while it
attempts to apply scientific,
and analytical methods to
design its product it ought to
learn from our glorious past.
Therefore, "Have a glace
over your shoulder
Please!".
Landscape & Me
M
y career began with and over again. Once
a small sketchpad EDITOR'S BOX again my responsibility
and a pencil. Every The author talks about 3 was to cast a spell of
morning I found of the most exciting magic. The design
myself hanging around the backyard projects out of 3000 that specifications got
of a small residential property. The he has designed. altered overnight. The
assignment was to create outdoor restaurant floor level
Living Space. The space available was raised, to match
was hardly 500 sq.ft. The family happened to be too demanding. The the level of the parapet
man of the house wanted the backyard to be converted into an wall on the terrace
entertainment space to host parties every weekend. His wife was which was 4' high. An
Mr. Sekar James
equally demanding! She desperately wanted a service yard for drying outdoor dining space
Chairman & Managing Director,
clothes and her children were dreaming of a cozy play zone. got wrapped around
Master Plan
Believe it or not the list was getting longer and longer, every weekend! the restaurant at the
I have always believed the only way to create magic is to Break All Sekar James is a visionary
same level as the
The Rules! I have always been too busy, breaking rules all my lifetime, landscape architect, with his
parapet. The magic
on every assignment, may it be a garden-in-the-sky on the 25th floor, innate flair for art creates stunning
materialized when the
or a tuck-away space in the basement. landscapes. His first project in 1974
negative space
was the iconic Fisherman's Cove
One of the assignments for a 12 storied city hotel, was to locate the between the dining
in Chennai.
restaurant right on rooftop overlooking the city and landscape the deck and the parapet
leftover space. I was quite keen on doing something other than grass got occupied by a
and garden. Dozens and Dozens of the city hotels have done it over shallow but large mirror pool stretching all the way to the parapet
with an `infinity' edge right on top. The parapet, just vanished. Late
night dining session becomes an out-of-the-world experience, while
you dine 12 floors above on the terrace surrounded by a mirror pool
with no parapet, no fencing & no barrier of any sort!
One other interesting assignment that came by was a Seaside Resort

which desperately needed all rules broken if the touch of magic was
to be created. The Resort was situated right on the coast yet far
away that you don't even know it was Sea-front. The solution was
quite simple! The `Water-front' ambiance was created, overnight,
on the sketch board by designing a 8-acre lake with lagoons. The
rustic cottages were located around each lagoon with extended sit
outs into the lake! Believe it or not a king-size swimming pool
materialized right with middle of the lake, on a 3 acre island!
GRT Temple bay, Mahabalipuram
Beach Resort, Chennai InfosysCampus InfosysCampus
Architectural Design in
Low Income Housing
A
fter their previous article that addressed the business
of affordable housing, the team from Monitor EDITOR'S BOX
Research now addresses the design aspects of this Most welcome ideas on
niche category that requires a unique mindset from cost saving which is the
developers, engineers and architects. need of the hour
Building housing in the Rs. 3-10 lakh range in a commercially

viable manner requires sourcing land at lower cost, managing costs of construction and most
importantly designing smaller format homes efficiently. Monitor's research has shown that low-
income customers, particularly those living in rental accommodation, are willing to make this
trade-off to smaller sized but quality houses in locations away from city centres, provided there is
Kushagra Merchant reasonable access to connectivity and social infrastructure.
The expectations of the low-income segment might not be of the same order as the higher income
groups, but they nonetheless expect (and demand) a certain level of quality and benefits. The low-
income housing model operates on a tight cost structure and thus, the challenge for a developer
is to ensure or improve upon user benefits without compromising profitability. Design sets the floor
on both quality and cost. As this article will highlight, through good design, it is possible for the
developer to provide quality and improve other functional benefits at a given end-user cost OR
conversely reduce end-customer costs for a given saleable area and set of functional benefits.
The objective of good design is to reduce the effective price that the customer bears. As illustrated
in the graphic below, this effective price comprises not only of the price paid to developer but also
Tanushri Kumar the costs that the customer would incur post the construction of the house. These include post-
possession fixed costs (e.g. furnishings, design changes etc.), recurring maintenance costs and
the long-term costs of renovation/ upgradation.
Figure 1: Housing life-cycle cost-value
By making suitable provisions in the site/unit design the developer can effectively 'stretch' across all the elements of the housing value delivery
and directly impact the overall 'cost-value equation' for the customer. This, in turn, translates to an improved ability of the developer to charge
a price premium. For example, a site layout that leverages the wind-flow patterns and optimizes the household ventilation translates to savings
in the household's energy consumption. By bundling this and other such 'design benefits' and suitably communicating them at the sales stage,
it is possible for the developer to incorporate these as part of the purchase price of the house itself.
Besides these, an alternative set of design measures positively impact the unit cost of construction - e.g. designing to enable use of shared
walls. The table below summarizes the key types of design interventions and examples of specific measures for each. A few of these might
already be familiar from their usage in higher-end constructions while others might be low-income housing specific. However, they all highlight
the importance of taking a 'life-cycle' approach to design.
Intervention type Design - driven measures
1. Designing for better quality (without compromising saleable FSI)
A. Efficient space utilization Reduce redundant spaces /design empty spaces for alternative usage
Use of removable partitions to enable multi-purpose usage (when needed portion of bedroom to serve
as additional room)
Increase commercial space to improve yield realization
B. Reduce post Minimize need for post - possession alterations -standard slots for washing machines etc. room
construction costs dimensions that allow off-the -shelf furniture to easily fit in
Reduce need to procure new furniture -e-g. slots in ceilings for storage. Pre-fabricated cabinets
Improved ventilation to reduce energy usage-alignment of building with respect to sunlight / windflow,
large windows
c. Improved site layout Provide buffer space -e-g. parks or community exercise spaces
Provide common spaces such as children's play areas and community gathering spaces
Within a development, spaces external to the units can be designed for alternative usage such as
rooftops or spaces in between buildings
Provide adequate infrastructure such as roads, parking and street lights to optimize pedestrian and
vehicular movement and circulation within site without compromising saleable area
11. Reduce' cost of construction' Design site layouts in accordance with site topology/hydrology patterns to reduce drainage cost
(without compromising Reduced usage of walls- e.g. shared walls
customer benefits ) Intelligent tiling e.g. minimize skirting
Design for usage of local/ alternative materials (esp.for non-structural elements )
Use standardized configurations wherever possible to reduce time to construct-e.g. through making it
feasible to deploy per-fab structures such as prefab toilets
Table 1: Key Design Interventions and Example Measures

Over the last three years, Monitor has worked with select developers and architects in low-income housing. During the course of this period it
has accumulated a databank of good design practices, especially applicable in a low-income housing context, some of which are illustrated
above. The next section briefly expands upon some of these ideas.
ILLUSTRATIVE DESIGN IDEAS

I. Effective Unit Space Utilization
The illustration below, of a mock apartment of 229 sq ft carpet area is prototypical of housing designs in Mumbai. However, it brings forth
principles (summarized in the table below) with respect to space utilization that has applicability across designs.
Figure 2: Unit layout (Mock Apartment, Mumbai)
Apartment area design specification space implications
Living room Length to breadth ration of drawing room: 1:1.5 A square room reduces the 'perceived space'
as well as uses more space
A living room too narrow looks like a tunnel
Alcove Hallway leading from living room to bedroom Minimization of 'empty spaces'
doubles up as a cooking area
Shower Toilet area The ceiling is not 9 feet high Allows for storage area/loft to be constructed
(as the rest of the apartment)
Storage Kitchen and bedroom have lofts for storage Lofts are deep traversing the length of bathroom and width of
the bedroom. Provides significant saving in terms of
storage furniture
Windows All three rooms have sliding windows 3 feet high High windows, besides allowing more natural light in, create
an illusion of a bigger space
Table 2: Space Implications of design specifications
II. Refining Site Layout to Optimize Space Usage
1. Open wasted space on left-

hand side becomes a dumping
ground for trash. By realigning
the building along the length of
the plot we eliminate this and
also create community space in
the centre
2. Introduction of a 'premium '

G+2 villa structures increases
yield (price /sq ft)
3. Creative of open space

through rearrangement of
building alignment
4. Addition of commercial /
retail spaces to improve yield
Figure 3: Site Space Optimization

III. Designing to Reduce Costs
Common walls between units:
Concrete formwork can be a large component of overall construction costs, and can be addressed through alternative design of walls. A
common wall, also known as a party wall, can separate units and reduce construction costs. Typically adjoining walls will separate units, but
common walls are structurally sound and can support two separate ceilings. Noise issues associated with common walls can be addressed by
using insulation.
Utilize filler slabs:
These are modifications to a normal load bearing slab, in which a great deal of concrete is used. Filler slabs utilize concrete in only one portion
of the slab, based on the principle that in simple roof support, different parts of the slab support different forces. Concrete is only required in the
upper part of the slab, and the lower part does not require concrete except to hold the steel reinforcements together. Concrete can be replaced
by low-cost and lightweight material, reducing the cost of the slab.
The above features/guidelines merely provide a starting point for design of good lower income homes. We believe there are a number of design
enhancements and innovations that can be undertaken with an impact on a much broader set of dimensions - including the ability to construct
to time and cost, incorporating energy efficiency and sustainability measures and, hopefully, over longer-term, fitting into an overall urban
planning framework.
Kushagra Merchant and Tanushri Kumar wrote this paper in the course of their work for the Monitor Group. For more information, visit
www.mim.monitor.com.
Worker welfare statistic that should see rectification with the formation of the welfare
board.
Lack of awareness among workers and a sluggish system are the
T
he Delhi Building & Other Construction Workers speed breakers to an important social upliftment essential. After all
Welfare Board is now in place for raising funds for there are over 30 million construction workers in the country, with
construction workers in the city. This comes as a only about 4 million registered. Obviously the activity needs a push to
meeting the requirement of the Building and Other become significant.
GOVERNMENT INITIATIVE
Construction Workers Act (Regulation of Employment and the

Conditions of Service Act), 1996. Constituted on September 02,
2009 the board is chaired by the state labour minister.
Representatives of the government and building workers formed
the member body of the board.
The state welfare board will raise funds for construction workers
in the city. A primary source would be through the levy of a 1%
cess on the total cost of construction. The fund is to be utilised to
provide workers with suitable dwellings, education for their
children and medical expenses in case of sickness or injury at
Worker benefits offered on registration in Delhi
working.
Construction workers may register by paying Rs 5 registration fee
Recently the Tamil Nadu Construction Workers Welfare Board and Rs 20 as Annual contribution along with the completed
has received the nod to set up an academy for higher education Registration Form at the nearest Deputy Labour Commissioner's Office/
for the children of construction workers at a cost of Rs 50 crore. Social Facility Centre. The benefits offered are:
The academy will offer courses in IT and Engineering and will be Medical aid up to Rs 1000/-
located in Kancheepuram. Financial support up to Rs 2000/- for the worker's marriage and
for the marriages of up to two children
Elsewhere in the country
Monthly pension of Rs 150/- after 60 years age
The construction workers welfare board is currently functional in
Monthly Family pension of Rs 100/-
Kerala (being the first state to upgrade from its existing welfare
Incapability pension Rs 150/- p.m.
infrastructure), Madhya Pradesh, Tripura, Haryana, Pondicherry, Maternity benefits Rs 1000/- for maximum two children
Andhra Pradesh, Arunachal Pradesh, Gujarat, Jammu & Kashmir, Compensation of Rs 50,000/- to nominee/dependants on death
Orissa and Tamil Nadu. The boards in Maharashtra, Uttar Pradesh at work
and Assam have been notified. Compensation of Rs 15,000/- to nominee/dependents on
Fund-Worker disconnect natural death
Rs 1000/- for last rites on death of worker
Besides getting the state boards to be more than just constituted for
Loan of Rs 5000/- for buy tools/equipment
formalities sake, bringing in worker awareness is another concern.
Financial support for education
By February 2009 more than 75 % of the cess collected by various
Benefits of Mobile school and Mobile dispensary
state governments was lying unutilised. Delhi, with Rs 1.4 billion in
Aid to handicapped
its collection had no workers registered in its books; a shocking
National Health Insurance Scheme extended to registered workers.
World Expo in Shanghai
Shanghai stakes a claim to Asia's premier city
N
o surprises that
EDITOR'S BOX attracted tycoons,
China picked
The magnitude of the literati, adventurers and
Shanghai to host
Shanghai Expo is mind even missionaries in the
the current World blowing. Article tries to past ; the qipao
Expo which kicked off on May 1, show the tip of the iceberg (cheongsam) clad sing-
a six month long event designed to entice you to a visit. song girls of Shanghai,
to showcase technological
and Shanghai's mafia
prowess and promote trade. At
gave the city a magical,
the expo, 192 countries are participating, their individual pavilions
mysterious allure
reflecting the spirit of the nation. For China, which is at the forefront
beckoning all as a
of Asian renaissance, the expo seems to be an exercise to propel
veritable "paradise of
Shanghai back to the top-league as Asia's premier city and
adventurers". In fact in
Dr. Anurag Viswanath
destination.
the 1920's, the glamour is a sinologist based in Singapore
Shanghai always has been and is, China's most flamboyant and of life and living, ample
effervescent city, a teeming bustling port, known for its openness opportunities, the synergy of art and architecture of Shanghai earned
and delightful plurality. Shanghai has a reputation quite its own. it the epithet, " Paris of the East".
Once notorious as the "whorehouse of Asia", Shanghai has an air of
Shanghai's has drawn and nurtured people from all walks of life.
decadence, a distinct savoir-faire, and a keen sense of business
Shanghai was home to China's most celebrated modern writer Lu
acumen, hard to find in other cities of China. It was indeed this
Xun, who created the famous fictional literary character Ah Q in his
distinct Shanghai spirit ( called tong, which implies savvy) which
classic "The true story of Ah Q" published in 1921 ; the house of
Sassoon which tycoon Ellice Victor Sassoon set up (Ellice was the
grandson of Elias Sassoon, founder of the company E.D. Sassoon)
thrived in Shanghai, trading in cotton and opium; famous music
composer Alexander Vertinsky whose compositions Stalin admired,
lived and worked in Shanghai; China's legendary gangster Godfather
Du Yuesheng lived in Shanghai; the anti-imperialist May Fourth
Movement of 1919 centered in Shanghai. Most significantly, the very
first Congress of the Communist Party was held in the city in 1921.
Shanghai emerged as the focal point of China's economic reforms
spanish pavilion
spanish pavilion Serbia pavilion
which runs at an estimated 250mph. The city itself has got a huge
facelift at an estimated cost of US $ 40 million.
Some of the pavilions are breathtaking, both in terms of vision and

execution. China's pavilion is an inverted 63 meter tall pyramid which
covers 30,000 sq m at the base which symbolizes a traditional dougong
bracket, symbolizing the union of heaven and earth. One of the most
breathtakingly beautiful pavilions is Britain's "Seed Cathedral" ,
designed by Thomas Heatherwick. This is a grand six storey structure
covered by 60,000 transparent acrylic filaments. The tip of each rod
contains a different seed, from all plants threatened by extinction.
The seeds are taken from the Millenium Seed Bank at Kew Gardens,
Korea pavilion London. The 7.5 mt rods sway in the breeze adding drama to this
ingeniously designed pavilion.
in 1992, when Deng Xiaoping during the course of his famous Southern
tour ( of China) declared that Pudong district was to spearhead and Japanese design known for clean lines, and for best marrying
showcase China's economic reforms. Today, Pudong is a maze of aesthetics and innovation, boasts of a futuristic gigantic football
skyscrapers and impressive infrastructure, housing R&D hubs of sized purple-silkworm pavilion. Japan incidentally was the first
many Fortune 500 companies. Pudong has emerged as the focal country make silk in the 4th century. The silkworm structure is eco-
point of the economically thriving Yangtze delta area. friendly, the external membranes utilize solar power and special
tubes help cool the internal space. Spanish Pavilion designed by
Shanghai also dominates China's political scenario - an influential
Benedetta Tagliabue Miralles Tagliabue (EMBT) merges and blends
political clique of Shanghai, the so called "Shanghai gang" impacts
the east and west with an intricate steel and wicker basket structure,
policy making in Beijing, the political center. In fact, many observers
the latter hand woven by artisans and embellished with Chinese
liken Shanghai to India's Mumbai, the commercial capital, whereas
calligraphy. The Korean Pavilion, designed by an architectural studio,
Beijing is akin to Delhi, as a political center. Amongst China's 30
Mass Studies, incorporates Hangeul ( Korean alphabet) into the
provinces, Shanghai municipality is the top contributer of tax revenue
design. The building is in the shape of an alphabet, and the walls
to the center, ahead of Pearl Delta's Guangdong province.
are covered with tiles each with a different word.
Shanghai's colonial past, the former British and French concession
Another pavilion which is eye-catching is the United Arab Emirates
areas have left a legacy of a rich tapestry of century old art-deco
pavilion, designed by Foster+partners : a seamless gold-hued sand
and neo-classical buildings which line the famous Bund (waterfront)
dune, inspired by the desert landscape. The pavilion is covered by
on the Huangpu River which divides the city into two districts Puxi
gold coloured stainless steel, which shimmers in the sun.
(old) and Pudong (new). The French influence is discernible in the
old district as detours inside of the city reveal charming tree-lined All in all, the expo holds the promise of being a visual stunning treat,
boulevards. Many of Shanghai's 19th century shikumen or stone- a true feast for the eyes. And for Shanghai, the expo is an all-out
gated houses have survived. Shanghai boasts of the majestic 14th coming of age party, to regain its lost epithet, " Paris of the East".
century Yu Yuan gardens and the visually stunning 19th Century
Buddhist Jade Temple. The imprint of the Jewish community is also
strong. Shanghai's iconic landmark, the Peace Hotel was built by
the Sassoon Family and is an impressive landmark on the Bund.
Recent buildings include the modernist Oriental Pearl Tower(1991)

designed by Jiang Huan Cheng of Shanghai Modern Architecture Group
. American architect Benjamin Wood revamped and successfully at
that, an old district in Shanghai into an upscale entertainment area
called Xin Tian Di(2003). This juxtaposition of the old and the new gives
Shanghai a rich character and makes it a visual delight.
With the world expo, Shanghai is positioning itself as Asia's

commercial capital. It already has the world's fastest train, the maglev,
seed cathedral UK
MCHI Property 2010 exhibition
gets overwhelming response
M
umbai, April XX, 2010: Over 73,000 home aspirants visited the recently
held Property 2010 exhibition, a 4 day event organized by Maharashtra
Chamber of Housing Industry, registering handsome rise of 12,952
visitors over 60,496 visitors turned out during Property 2009 exhibition
held in October last year. The MCHI members showcasing their properties also sold a
total of 150 flats during the four day exhibition held at the MMRDA grounds at BKC
during April 8-11, 2010.
Commenting on the success of the exhibition, Mr. Pravin Doshi, President MCHI said
"With the success of the exhibition it is now confirmed that there is a huge demand in
the property market and buyers are looking for best available properties with the
world-class amenities.
Mr. Deepak Goradia, Co-convenor, MCHI Exhibitions said, "We feel encouraged with
the massive response from the home buyers to our exhibition and large scale inquiries
were from the genuine buyers at several stalls which is really the good sign for the
real estate sector".
Mr. Harish Patel, Convenor Exhibition, MCHI said, "Achieving actual sales was an
exceptional achievement by our mega property show as we are generally trying to
make an attempt to showcase all the properties so that the buyers can conclude his
decision even in next few days. We believe that the buyers have felt it was the right
time to buy the property".
to offer Home Loans at their best rates.
"As many as 75+ Developers have showcased around 524 Projects and over 17,600
Municipal Commissioner, Municipal Corporation of
apartments ranging from Rs. 10 Lacs to Rs. 10 Crores displayed at the exhibition,"
Greater Mumbai (MCGM) Shri. S. S. Kshatriya had
added Mr. Zubin Mehta CEO of MCHI.
inaugurated the mega property show at the MMRDA
Around 15 + leading HFI's & Banks such as State Bank of India, HDFC Ltd, ICICI Home grounds BKC on Thursday, April 8, 2010, in the presence
Finance Co. Ltd., Standard Chartered Bank, IDBI Bank ltd., Dewan Housing Finance of State Bank of India Chief General Manager Shri.
Corporation Ltd. (DHFL), and other Banks had participated in the mega property show Shyamal Acharya, and key MCHI members.
Event report
Realty Expo 2010 by
CREDAI Bengal
Date: March 12-15, 2010
Venue: Science City Grounds, Kolkata,
C
redai Bengal organised the Realty Expo 2010 where an
impressive conglomeration of real estate developers
and allied products interacted with buyers at all levels.
Properties on offer ranged from mass housing to niche
products. Banks and allied industry players loan options and products
& services.
CREDAI Bengal used the venue to carry forward its social commitment
activities on educating the consumer. There were free workshops
organised on home loans, house electrification and paint solutions
for the visiting consumers.
The launch of the Real Estate Digest magazine opened the doors to
consumers searching for real estate properties. The A 150+ page
magazine has extensive and current directory listings of more than
250 properties.
ANNOUNCEMENT
MCHI signs Joint Declaration
with Maharashtra Govt;
To facilitate
creating 5 lac
r Ashok Chavan, the honourable Chief Minister of
M Maharashtra today announced that a 'single window
affordable
clearance' system would be created for facilitating
the construction of 5 lakh houses under 'Homes for
All' scheme as outlined by Maharashtra Chamber of
Housing Industry (MCHI).
homes
In one of the largest Public Private Partnership initiatives aimed at
making available five lakh affordable homes in Mumbai and Mumbai
Metropolitan Region, (MMR) Maharashtra Chamber of Housing
Industry (MCHI), the umbrella body of developers, signed a Joint
Declaration with the Government of Maharashtra in the presence of
Hon'ble Chief Minister, Shri Ashok Chavan.
MCHI will be partnering with the State Government to examine and

identify measures to strengthen the housing industry's role in the
socio-economic development of the State. Additionally, the premier
housing body will also seek to formulate measures that will aid in
the development of affordable homes and ensure their availability
across the Mumbai and MMR Region.
Commenting on this major initiative, Mr. Pravin Doshi, President,

MCHI said, "it is really a historic day for MCHI and Maharashtra.
With the participation of over 500 developer members of MCHI and
wholehearted support from all the housing agencies and authorities,
I am confident that we would be able to facilitate the creation of five
lac homes in next five years".
JOINT COMMITTEE
A. The GOM hereby appoints it's
(1) Principal Secretary, Urban Development - Chairman
(2) Principal Secretary Housing
(3) MMRDA Commissioner
(4) CEO & Vice Chairman, MHADA
(5) Municipal Commissioner, Mumbai
as the Authorised Representatives.
B. The MCHI hereby appoints

(1) Shri Pravin Doshi, Chairman of "Homes For All" Committee
(2) President MCHI - Shri Sunil Mantri
(3) Shri Dharmesh Jain
(4) Shri Mayur Shah
(5) Shri Nainesh Shah
as the Authorised Representatives.
Private Equity Investments - What
a Developer should not overlook
EDITOR'S BOX
Two Developers & a Consultant dissect the game of Private
Equity Investments and present the intricacies in 3 different
capsules in this section
CAPSULE 1 By Pradeep Jain, Chairman, Parsvnath Developers Limited
Generally, there are few
P
rivate equity is money invested in companies that are not
publicly traded on a stock exchange or invested as part of concern points which a
buyouts of publicly traded companies in order to make developer should take

proper care.
them private companies. The most common investment
strategies in private equity are leveraged buyouts (LBO), Prefect time to form
the deal
venture capital, growth capital, distressed investments and
It is advised that the
mezzanine capital.
developers should form
Private equity investments are likely to see an uptrend in the coming the PE deal for
days due to renewed optimism from investors flush with capital. In completion of project
the recent survey by a consultancy firm, Deloitte, it has been mentioned rather than start of the
project. It straightway reduces the tenure of interest and also shortens
that the average deal sizes are expected to rise due to the volume of
the gestation period.
capital pushing up entry multiples. Foreign fund managers are likely
The contingent liability accruing through such transaction
to be the most active investor group in Deloitte's 'Indian Private
The rate of return on the fund, the tenure of return on the fund, the
Equity Confidence Survey'. During the January-March quarter, PE profit sharing ratio, share in liabilities (if any) are some of the points
firms' investments in India rose at their fastest pace in 18 months to which may turn into liability if not dealt properly.
USD 2 billion. This was higher than their contribution of USD 620 Quantum of equity in proportion to the project size
million during the same period in 2009. The developer must know how much amount he requires to complete
the project and out of the total project amount how much he should
With the worst of the economic downturn over, there is an expectation
ask as PE fund.
of a pickup in activity levels, with enhanced investment by PE funds, The correct approach towards equity partners
as well as selling due to the improved secondary market. However, Key assets for private equity firms to be able to demonstrate in this
one has to be cautious in approaching the PE investor. Lately in environment include reputation and an ability to add value to portfolio
India, PE funding has emerged at large in real estate sector where companies at the same time developer should also look into value
addition to the property. Recently it has been witnessed that the real
developers target the PE deals for their on-going projects. This helps
estate investors, especially property funds, are signing deals to secure
them in generating fund on project on project basis, thereby helping
their investments many times over and draw enough profits to qualify
the companies in accelerated completion of the projects.
for a windfall. Besides, "cash-out" deals are also fast becoming
Like every funding procedure, PE deals also carry some hidden favorite among developers, wherein the developer take out the money
aspects. PE funding is always guided by a lucrative rate of return invested by the fund for his use as soon as he gets the money from
the investor. These kinds of deals are simply spoiling the high spirits
though it seldom happens that both the parties get equal amount of
of the game and are also offending the FDI norms.
profit. This situation is generally referred as 'Deep Waterfall
Structure' where the developers, in a hurry to canalize the fund, If the developers start taking some extra care while drafting the
deals, PE funding may evolve as the best option for this industry.
fall into a trap.
Private Equity Investments - What a Developer should not overlook
CAPSULE 2 By Sushil Mantri, CMD, Mantri Developers Pvt. Ltd.
As Organisations scale up Key areas a Developer should ponder over are:
the ladder, the gap on Due diligence on the PE investee Companies credentials
capital requirements of the IRR expectations
organisation to fund the Degree of Management/Equity participation by PE investor vis-
project and land deals a-vis flexibility available to Developer in executing the project
Exit options of PE investor
needs to be bridged.
Sacrifice by developer of Equity pie vis-a-vis returns post
Exclusive avenue available
investment
to developers is raising
More emphasis is to be laid on just and equitable deals. Very high
capital through Private rate Mezzanine deals, high equity return commitments and one sided
Equity within the framework deals are to be avoided.
laid by the Government.
The ideal situation will be anything better than 51:49 stake with similar
A structured PE deal done distribution of profit upto certain hurdle rate and then disproportionate
which can be boon to the Developers and investors alike. The sharing to Developer above hurdle rate, which will bestow greater
developers and investors mindset which focus on, win - win deals, comfort to investor on the one hand and on the other Developer is
but not on win - loose transactions, No one is here to invest to motivated to gallop with zeal on project to yield expected returns.
loose. The Developer should be transparent and should make a Investor covenants the Developer to build in systems, processes, risk
conservative bottom line proposition with fair timelines to the management strategies for the organisation, corporate culture
investor which eventually should be achieved to yield desired IRR. besides paving the way for a successful IPO at a later date. Treat the
Developers should be careful about any negative covenants and PE investor as your Partner in all round growth of the Organisation.
affirmative rights which the Investor would insist upon. Beware of A satisfied Investor will usher in tons of credibility to the organisation.
Vulture variety of PE investors who exploit the hapless condition of For a Developer, the debate of PE investor being- a boon or a bane
Developers in recession. Use the best legal firms for any continues ... there can be no two opinions that a good PE deal could
documentation with Investor. go a long way in mutual benefits a la in a happy marriage !!!
Private Equity Investments - What a Developer should not overlook

CAPSULE 3 By Shobhit Agarwal, Jt. MD - Capital Markets, Jones Lang LaSalle Meghraj:
This Indian PE A lot of developers have understood the value of the capital and
bandwagon came to a expertise that PE players contribute, and they are willing to share
temporary halt during the equity in their projects with these institutional investors. Where
recent recession - the developers previously had to rely solely on internal accruals and
worst since the Great debt, they can now take up larger projects and acquire prime land
Depression. This was a parcels with the sound financial backing of these PE players.
function of the overall Private equity funding, apart from the obvious financial support, also
economic slowdown, not helps in improving corporate governance standards of real estate
because of antipathy over companies. It is also instrumental in bringing about transparency
the prospects of the and financial discipline, which are now of paramount importance.
Indian real estate markets Private equity interest in India continues unabated, given the risk/
or its constituents. PE reward profile and size of the market. We anticipate 2010 to see
activity has increased over the last three quarters because valuations about USD 2 billion worth of private equity investment coming in.
are more reasonable. The India Story is firmly back in vogue, and That said, I firmly feel that our developers need to look positively at
there is a huge requirement for execution capital to complete projects. seeking PE participation to meet their expansion capital needs.
A much larger role for
CREDAI
Interview with Mr C Shekar Reddy, Vice President, CREDAI
D
eeply involved with
EDITOR'S BOX
CREDAI from the
Vision of Mr. Reddy C Shekar Reddy
outset, Mr C Shekar
if fulfilled can Vice President, CREDAI
Reddy, Vice
catapult CREDAI to a
President CREDAI
different level
talks to the Real Estate Review
about his dreams and vision for
India needs a tremendous amount of urban development today. Our
the organisation.
cities need better planning, bye-laws and regulations that allow for
Since when have you been associated with CREDAI? development that will meet the future needs of the city. Cities would
I have been associated since the very beginning way back in '87. need to design their infrastructure according the Master Plan. Right
There was no apex body in the country back then and at a meeting in now, its rather adhoc. The Master Plans that exist are not updated
Delhi, we took an informal decision to form one. A lot of hard work regularly, they would need to be updated every 5 years. What's
and several meetings later, CREDAI got formally registered in 1999. more, we need new urban centres.
There has always been a strong support from me and from developers
Influence city planning CREDAI should be in a position to tell the
based in Andhra Pradesh to CREDAI, whether it is about getting the
government what the Master Plan of a city or town should be. We
largest delegation to NATCON, making inroads to influential
should know how to prepare these; in fact, we should make a standard
politicians or taking up pro-developer initiatives with our own cities
template. With standardisation will come in quality and cost-
and local governments.
effectiveness and it will become easy to implement for civic bodies.
What was the pressing need at that time for an apex body?
R&D We need a research department that can provide inputs for
Urban land ceiling was the common issue that affected all of us then
such a template, have statistics about the industry. Like CII, we can
and in fact brought us together for the first time. Once we started
engage consultants for research in every sector, examine different
meeting and discussing, the scope grew.
aspects of our industry and ultimately create vision documents or
What does CREDAI, in your view, mean to the industry today? policy documents which we can use to influence policy that will
Real estate was earlier an unorganised sector, with some small enable these changes.
organisations here and there. Because of CREDAI, we have come
CREDAI member associations at state and city levels play a major
under one umbrella. CREDAI has created a fellowship among
role in collecting data, influencing policy changes, creating
developers that was not there before. We must all give the
awareness. They are the eyes, ears and nose of CREDAI. We should
organisation that credit.
use this strength.
For example, earlier the developer community had hardly any access
CREDAI reps to important bodies CREDAI office bearers must have a
to the government. Now we have a fairly strong representation in
representation on the Planning Commission and CREDAI members
policy-making and are invited to comment on all major policies
should be on state level advisory boards for city improvements and
impacting real estate. We've come a long way.
creation of new cities. For instance, real estate organisations have
Tell us something about your dreams for CREDAI? recently been included in the CM's advisory council for Hyderabad
I think CREDAI can be far more effective than what it is today if we city. This council has been specially set up to work towards making
think of ourselves as an umbrella organisation and move beyond our Hyderabad a more attractive city to invest in.
current activities which focus on issues like budget modifications,
Dialogue with manufacturers to bring down costs We need an
incentives, taxation, etc. We need to strengthen organisation at
increased dialogue with manufacturers, institutions and other
national and state level and spread our activities.
industry bodies to bring down costs and increase efficiencies. There's We lose too much time and money on the complex net of approvals
plenty of talent available, but its not coming together at present. The and the delays. Its necessary to push for a green channel like we
concept of preferred partners that we kicked off in NATCON 2010 in have done in Hyderabad where they outsource the approvals to a
Dubai will help bring in quality and reduce cost because the partners panel of consultants set up by, trained and licensed by the
will get a large assurance of business from a single body of development authority. Other cities also have made attempts. CREDAI
developers. If CREDAI can link the manufacturer's production to our should study these and present it to the government. In fact, we
own products directly, we remove all marketing overheads and bring should work at implementing a single government fee for all
down costs, for example. approvals and permissions.
Technology improvement We need to implement better technology Other areas are FSI, building bye-laws and regulations, etc. where
through this dialogue with universities, institutions and consultants. CREDAI can work at a Model Building Code that cities can adapt to
Today, many projects around India are using excess steel because their own needs. We should look at systems where self-regulation
consultants are over specifying to protect against eventualities. That's and self-enforcement become part of the process and its in the best
not needed. It's a waste of national resources. There is a need to interests of the developers to act responsibly.
focus on design and the use of right building materials.
CREDAI should also take up skill development at the state level or
Event calendar CREDAI should have a calendar of events on various perhaps as part of the NSDC initiative started by the centre. Lack of
topics in various cities to help us address the variety of issues and skilled workers is impacting our industry negatively. The consumer
get in feedback from a large cross-section of experts. We need to grievance cell that works well in Pune should certainly be
create a forum where every developer can see what others are implemented in every city by CREDAI's city and state associations.
doing, learn about developments in other cities, be able to visit Title guarantee and licensing of real estate agents are two other
projects and educate themselves so that we collectively grow as an issues that come to mind, where CREDAI can play an active role.
industry.
Essentially, CREDAI is already addressing the ongoing issues at
What are some of the immediate concerns that CREDAI should national and state levels. Several initiatives spread across the country
address, in your opinion? should be studied and replicated in other places to help developers
CREDAI needs to focus on the issue of approvals and permissions. across the board. It is in serving our members that CREDAI will help
the larger cause.
CSR INITIATIVE
VGN Homes
V
GN Homes Pvt Ltd has added value to two of its
township projects in Chennai, by undertaking
school projects in the vicinity. At the Avadi project
adds school a school.

with plans for 5000 houses, VGN Homes has gifted
2 acres of land to Chinmaya Vidyalaya for starting
projects On similar lines, a tie up with Maharishi Vidya Mandir will see
a school project come up on the Avadi Poonamallee link road.
VGN's 4200 houses will be coming up in the area.
EVENT REPORT
Property 2010 Thane

he Maharashtra Chamber of Housing Industry, Thane With a luxurious spread of 150,000 sq ft of air conditioned
T organised PROPERTY 2010, THANE, which brought

together builders from Thane, Pune, Nasik and
Kalyan at the Highland Gardens, Thane, Mumbai
from April 30 to May 3, 2010.
exhibition space, there were over 200 stalls for Builders, housing
finance companies and other participants for the visitors to
browse through. The fanfare and aggressive advertising efforts
for the event seemed to have proved effective, seeing that there
were an estimated 25,000 visitors per day.
RECOGNITIONS
S.I.S. Safaa C
REDAI Tamil Nadu member and well known
developers South India Shelters Pvt Ltd
(SIS)won an award in the Best Architecture
Highly (Multiple Units) - India category of the Asia

Pacific Property Awards 2010 in association with Bloomberg
Television for their under construction S.I.S. Safaa project.
Commended at The Award, presented at a glittering gala dinner at the Hotel

Langham, Hong Kong, was received by Mr.A.Nawaz Hussain,
Director SIS.
Asia Pacific The company has won several awards for its previous
projects including the Best Residential Development
recognition at the CNBC Asia Pacific Property Awards
Property Awards 2009 and the Cityscape Asia Awards 2009 in the Best
Residential Development (Built) category.
SECRETARY - CREDAI KOCHI,

Mr. M.V.ANTONY ELECTED AS
PRO SECRETARY GENERAL OF
RECOGNITIONS
IFAWPCA, MANILA
IFAWPCA, or the
F International Federation of
Asian and Western Pacific
Contractors' Associations,
formed in Manila,
Philippines in 1956, covers the Builders
and Contractors Associations of 16
countries like Australia, New Zealand,
Japan, Korea, Hong Kong, Taiwan,
Singapore, Malaysia, India etc.
Shri M.V. Antony (ANTONY KUNNEL),

elected as Pro-Secretary General for 2010
- 11 is the second Indian after Shri
B.E.Billimoria, since its inception in 1956,
during a colourful function at the 38th
IFAWPCA convention held at Taipei
Taiwan, in April 2010,
Mr. Antony is a founder member of A.C.E., Governing council Member
A graduate in Mech. Engg. from CUSAT(Cochin University of Science of I.G.B.C. He is active in the K.M.A., C.I.I., the Kerala Chamber of
and Technology), He initiated several programmes like Training in Commerce and Industry, etc. etc. He was also a faculty member of
Safety for Construction Workers; Management Training for Owners the Institution of Engineers, Cochin Chapter. Currently Mr. Antony is
and CEO's of construction companies etc. the Secretary - CREDAI Kochi.
CREDAI NCR
in dialogue with
Banking industry
day long conference was organised by the CREDAI
A NCR on 7th May at the Eros Intercontinental, Nehru

Place, New Delhi to address the issues of financing,
especially project finance, which is posing as a major
hurdle for developers across the country. The event, titled "Formulation
of the banking strategy & the economic outlook for real estate 2010-
11" saw prominent developers, private banks and fund managers
talking about the real estate industry in general as well as issues and
solutions to developer financing woes.
The technical sessions that addressed project financing in residential

and commercial real estate as well as discussed future scenarios
for the industry were moderated by Mr Sunil Agarwal, Chief
Development & Acquisitions Officer, SARE, Shri Parry Singh,
Managing Directior, Red Fort Capital and Shri Sanjay Bansal, Ambit
Corporate Finance Pte respectively.
In his inaugural keynote address, Dr J D Agarwal, Chairman &

Director, Indian Institute of Finance recognised "Real estate is one
area that deserves more attention from the Government of India that
what it receives right now". He also advised the developer community
to "build an appropriate image that they are not profiteers but are
actually meeting an important need. The image of a service-oriented
industry should be highlighted, that RE provides jobs should be
highlighted."
Mr Lalit Kumar Jain, Chairman Kumar Builders and Vice President

CREDAI called for an SOP to ensure that developers are sure of
getting funding, the lender should have faith in the developer. "No
developer will get into an unfeasible project. A mechanism to
synchronise between the bank and developer is needed to make the
system efficient and reduce cost to consumers," he said. Placing in
context the issue of home loans Shri Rajiv Sabharwal, Senior GM
ICICI Bank reminded the audience, "Retail finance to consumers is
the most empowering thing we can do."
While discussing commercial real estate, experts advocated a shift Looking into the future, speakers were optimistic about the industry
to the pure lease model for office properties as well as malls. Said going forward, though they expressed caution at present. Shri
Smt Shanti Ekambaram, Director, Kotak Mahindra Capital, "The right Prakash Kolothia, MD & CEO, SUN Apollo Real Estate Advisor Pvt Ltd
model is to own the mall and to share the revenue. It doesn't work to struck a positive note when he said, "I'm very passionate about
rent at the highest rates to big brands. Active management is needed corporate governance and transparency. Before I retire, I hope to
to get the footfalls." see many real estate corporations in India being run like Infosys."
Credai Preferred Partner
Program (CPP)
T
he CREDAI Preferred Partner Program or other wise
called the Seal of Approval was unveiled at the NATCON
2010 at Dubai by the Hon'ble Minister for Housing &
Urban Poverty Alleviation and Tourism, Govt. of India
Kumari Selja, in the presence of Mr. Deepak Parekh, Chairman
Emeritus, HDFC Ltd and other dignitaries of CREDAI Mr. Kumar Gera,
Chairman; Mr. Santosh Rungta, President and others.
The Seal of Approval is a concept created by CREDAI to accord

J.S.Augustine, Hon. Director.
Quality Certification to various brands that are used by Developers
CREDAI Events & Exhibitions.
across the country. This Seal of Approval will be evolved through a jsaugustine@credai.org;
mechanism which is being currently worked on. It will include Quality jsaugustine@everestindia.com
Certification obtained through esteemed institutions in India based
on the technical parameters which will be laid down for all categories CPP will make special offers to CREDAI Members.
of products. Use of such CREDAI Approved product will benefit the The Developers' reputation will soar higher.
Developers to maintain the quality and the end consumer will be
Customer/ Buyers' Benefit:
delighted. As a first step towards this, CREDAI has commenced the
Customer gets a Quality product with minimum service issues
CREDAI Preferred Partner Program. This Annual endorsement is on
post possession of his home or office/ shop.
invitation only. The invitation is extended to Brands that are well
Customer enjoys a better life style with the increased quality and
qualified and established in the Indian and International markets.
safety.
The pre condition being that : Customer appreciates the Value for his money invested with the
The product or service must be amongst the top 5 in the Indian Developer.
Market in their respective product/ service category or in the top Customer will recognize the Seal of Approval of CREDAI and
5 International Market. prefer such projects over the others.
The brand must have necessary certification such ISO, their Customer is assured of the quality of materials used.
trade body certification, BIS, and other technical certification.
CPP Brand (Manufacturer / Service Provider):
They are also required to have a good reputation in the Indian
Gets access to 5000 + Developers and 50,000+ Projects across
market for their Service levels.
India.
How does this Benefit? Gets preference over competitors on a regular basis.
Developers' Benefit: Able to increase their business volume due to the captive 5000+
The Developers who use CREDAI Preferred Partner (CPP) Brands developers.
are able to use the top 5 well known brands. Able to build a relationship with the Developers and EPC/ Project
The Developer is seen as Quality conscious organization and Heads for long term business.
committed to delivering high class product. They will be able to use the Seal of Approval in their Brochures,
The end users get a quality out put from the Developers. Advertisements (News papers/ TV / magazines / website etc.,),
Developers are able to create loyal customers in the long run. Packaging, and all communications attracting more customers.
Who are our Current Preferred Partners? ALUMININUM COMPOSITE- ALU BOND
TAXATION- KPMG
The CPP will be able to access the 5000 + Developers (With over
International Property Consultants- Jones Lang Lasalle Meghraj (JLLM) 50,000+ Projects in Residential, commercial, IT Parks, Hotel Projects,
Hospitals, Warehouse & Industrial Parks, Infrastructure Projects,
SEZ, Power Projects etc.,) through CREDAI through various means
such as CREDAI Journal Advertisements (18,000 readership), E-
mailers, CREDAI Seminars and Conventions, courier and postal

INVESTMENT BANKER- NOMURA delivery of brochures, CDs, organize one - one meetings, participate
in the CREDAI Zonal / Regional meets, Dinner / Lunch gatherings,
launch new products and other Innovative and personalized
programmes. CREDAI has and exclusive team of Professionals who

WIRES & CABLES - R R KABEL
will administer this programme throughout the year for the benefit
of CPP Brands and CREDAI Developer Members.
The Seal of Approval is valid for a period of One Year beginning
PARKING SOLUTIONS - R R PARKON from 1st April to 31st March every year.
The CREDAI Member Associations and Developer Members are
urged to give preference to our preferred partner and begin a long
term mutually beneficial relationship there by enabling a WIN-
WIN- WIN situation for the Consumer- Developer - Manufacturer /
Service Provider.
CEMENT- ULTRATECH
For enquiries contact: Mr. J.Venkatraman, Manager- CPP .
Venkatraman@credai.org Mob: +91-98336-11821 Tel: 022-25 26 4900
or our Delhi office.
CREDAI Vizianagram inaugurated

EVENT REPORT
A
pril 2010 saw the inauguration of the Vizianagaram Later, the executive body for Vizianagaram was announced as
unit of CREDAI by Mr Sekhar Reddy, Vice President, follows: M. Srinivasa Reddy, Chairman; G. Srinivasa Rao, President;
CREDAI. In his press conference, Mr Reddy explained K Sita Ram Murty, Vice President; D.V. Raj Kumar, Secretary;
the objectives of CREDAI are to adopt a code of D.Vijayarama Raju, Joint Secretary; C.Sridhar, Treasurer and five
conduct, educate builders on the latest in the industry and serve others as executive members.
the customers with increasing transparency. Mr K S Chandran,

Meanwhile, CREDAI Andhra Pradesh received the Societies
Honorary President called upon builders to observe self-discipline
Registration Certificate in March 2010. CREDAI Hyderabad is in the
to avoid disproportionate growth.
process of being registered as a society.
ROFL after client meetings
Hilarious experiences of a
Landscape Architect
While many don't want
F
unny incidents are
EDITOR'S BOX snakes, I have residential
plenty in one's
Builders beware of clients who want
professional life.
Architects! You are being expansive lawns but no
While in retrospect
made fun of ! Jokes apart, ants. I try to convert them
such oddities can be humorous,
the author has chosen a saying that ants are part
at the time of their occurrence,
humour route to convey of the soil system-
they seem almost life-threatening
some very important aerating the soil, etc.
and I consider these incidents my
aspects of Landscape They are convinced that
occupational hazards. ROFL - the
Architecture in a subtle they want lawns but no
internet acronym for Rolling On
the Floor with Laughter, with manner. Don't miss it. ants. "Okay, sure" I say,
fellow colleagues after client as I pretend to write that Prashantha Bhat
meetings has been our therapy against such episodes. down as a design brief. Having a Masters in Landscape
I'm sure you've also met Architecture from University of
I am a landscape architect - and I take my job seriously. Landscape Pennsylvania has his own practice
the client who wants and is invited as a speaker in India &
architecture is not gardening, nor is it horticulture, as it is about abroad. He can be reached at
birds and butterflies in
design of outdoor spaces. Like architecture, it is a design profession. pbhat@TLCarch.com
their landscape. How
So clearly I'm irked when people ask me what to spray on their rose
can we have birds and
which has had a pest infestation. I've been in the practice of
butterflies but no ants, bats or bees? Isn't it nature that takes charge
landscape architecture for over 10 years now, and my list of hilarious
and controls the system? Isn't it necessary to have all kinds of
incidents has numerous entries. One of my pet peeves is when
wildlife to ensure predator prey cycles keep the landscape healthy?
clients want a "Maintenance-free" landscape. Landscapes are living
systems - subject to the environment and external factors. Even Forgetting that landscapes are eco-systems that harbor life that is
buildings need maintenance. If so, what then is a "maintenance- dependent on climate, I had a wealthy client who wanted to have
free landscape design"? Waterbodies will need care, plants will tulips in her garden in the outskirts of Bangalore. My pleas that it
grow & die and will need pruning, trimming, mowing and wouldn't grow here were met with "I can build a climate-controlled
replacement. green house for it". I jotted it down on my note pad "Tulips - red &
yellow colour," as I wondered if a client in faraway Netherlands was
Typically land is acquired in the outskirts of cities to convert into
similarly asking her landscape architect to grow mango & coconut
residential villas for rich, expatriate clients. Surely safety is of
trees in her landscape.
concern and so as a landscape architect, the brief given to me will
be "No snakes. Can you ensure there will be no snakes?" (Or "no On multiple occasions I've been asked to present my concepts in the
mosquitoes"). Now really - how can I ensure that? I'll have to become Board Room just to impress the Board of Directors - so that my
a mongoose for the next few years. It is only a myth that certain beautifully rendered drawings will justify the expense. In the middle
plants attract snakes or certain others repel them. When it is we of my complex presentation, I'll be interrupted, "Can we have jasmine?
who have moved into the snakes' home, how can the snake be …… Actually my wife likes gardening, I'll ask her to talk to you about
undone instantly? What we must realize is that snakes are smart which variety is best". "Surely Mr. CEO, does she also assist you with
reptiles. While an occasional, stray snake may be found in the your other Board decisions?" is my instant thought as I jot down the
precincts, snakes too will avoid human settlement (unless residents boss' command. I pull my hair out in testosterone filled Board
keep it dirty where rats thrive. Rats are preys for snakes). But then Rooms, when honourable members of the Board mistake landscape
again, when was the last time you heard of a rich crorepathi being architecture for horticulture, and insist that interest in landscape
bitten by a snake in his gated community? design is gender based, where only their wives are experts and
hour - which would then justify the pains of
memorizing tongue twisting names in taxonomy
classes.
Like builders whose reputations are based on

previously built projects, we landscape
architects also rely on our past projects to
convince our clients of our capabilities. "We'd
like to see a couple of design options and detailed
drawings for our site before we hire you" insisted
a young client who'd inherited a parcel of land.
I showed him samples of my work but he insisted
that he wanted to know what I could do at his
site. "Sure, can I stay in your apartments for six
months and see if I like it before I pay you for it?" is the response I
wish I could have given him. If he wants his clients to trust him as a
builder and his past projects should speak for his quality of
construction, then why are my past projects & experiences not
should be given that token inclusion.
convincing of my capabilities?
Expensive real estate demands projects to be built right up to the
Comically, a client who feared that I'd charge him a big fee kept
edges of the property; and only the podium is left for landscape
saying, "I know exactly what I want - its simple." He repeated it so
design. As most of the promotional brochures would have tempted
many times that I wondered, "If he knew what he wanted and it was
buyers with a verdant landscape, the landscape architects are asked
that simple, why then does he needed me at all?"
to create magic. They want us to grow trees, and have a healthy
landscape system on a podium slab. "What kind of soil depth do I And the line that makes me laugh each time I hear it is when a client
have here?" I ask, and the architect will say "about 9 inches (275mm)" says "We'd like to work with you. We have many projects lined up,
and I'll ask the promoter, irritated "How can we grow trees on that?" so quote me your best rate", as if a carrot of "many projects lined up"
and before you know it, the structural engineer will admonish that is supposed to make me reduce my price. "I'm not selling onions," I
he hasn't planned for 9" of wet soil on the slab, almost instantly want to tell them, where the rate falls with increase in quantity. I
erasing any ideas the landscape architect has for this project. Proper don't sell a commodity. I sell a unique design and each project is
soil depth, with clear drainage is paramount for a healthy landscape different and exclusive. Each site is special, just as each client's
system. requirement is distinctive, no matter how many projects s/he is
developing.
My other pet peeve is when Vastu consultants are given priority over
landscape architects' advice. "No, no we can't have that - the Vastu It is important for us to be able to laugh at ourselves, and Landscape
professional said so." Honestly, do you think a landscape architect Architects too are the brunt of many jokes. In a vast project that
could be against nature? Shouldn't Vastu be pro-nature? Then how required a team of many services, the client asked me a question,
can the Vastu consultant ever suggest felling of a tree? Yes, I've had and I deflected, "The irrigation consultant will answer that." And
projects where trees were chopped on the advice of Vastu then another question with regards to load of power supply for outdoor
'professionals'. Then there is the new wave - LEED accreditation. I lighting, to which I said "That is in the scope of work of the Electrical
recently had a request to submit a diagram showing how much consultant" and I invoked the name of the plumbing consultant too
oxygen is given out by plants so that the PMC could include it in the for another query and when all other sub-consultants had been
LEED rating documentation. involved, the client jokingly asked "What are you doing here then?"
"Our strength lies in bringing the various services together and
I've had to undergo rigorous training to become a landscape architect.
designing aesthetically pleasing outdoor spaces" I shot back
People often ask me how I remember the tongue twisting botanical
defensively, yet laughing at his jibe at me.
names of plants. Years of plant taxonomy classes were conducted
for a reason. Childhood recollection of a tree one may have climbed, While odd client incidents are few and far between, they are 'major'
or a flowering plant that a neighbour had, evokes memories and irritants at the time of their occurrence; and they soon turn into full-
clients ask for just that. They quote common, local names - and blown humour acts for the entire office to laugh about. I guess such
often, multiple plants can have same common names and the scenarios spice up the profession, which I thoroughly enjoy and
exercise can be tricky. I've spent hours with clients trying to identify love. Landscape architecture provides me comic relief and I can
a plant and I've wished that, like some lawyers, I could bill by the ROFL after such life-threatening incidents.
S e r i o u s Humour
Project management proverbs
Nothing is impossible for the person who doesn't have to do it.
At the heart of every large project is a small project trying to get out.
A user is somebody who tells you what they want the day you give them what they asked for.
Anything that can be changed will be changed until there is no time left to change anything.
If you don't plan, it doesn't work. If you do plan, it doesn't work either.
Get it right
A real estate developer was looking for a Senior Manager and decided that the answer to the question "What is Two
plus Two?" would get him the suitable person. As the applicants came in he put them to test.
The first a lawyer said, "The case of Karthik vs Karthik has proved Two plus Two to be Four."
The second candidate, a journalist smartly declared, "Twenty-two."
The next interviewee, an accountant, came close to the businessman and whispered in his ear, "How much do you want it to be?"
He got the offer letter.
Quotes Tidbits
"Whenever man comes up with a better mousetrap, nature immediately comes up with a better mouse." - James Carswell
"A society is defined not only by what it creates, but by what it refuses to destroy."
- John Sawhill, former President of The Nature Conservancy
Cementing facts
With products like Transparent Cement making news, just a look back to major landmarks:
Clay was used by the Assyrians and Babylonians as cement.
Hydraulic cement was invented by John Smeaton, a British engineer.
Portland Cement, the first true artificial cement was an invention of Joseph Aspdin, an English inventor
Reinforced concrete was invented by Joseph Monier, a gardener in 1849.
Deft Definitions
Patience: The virtue most needed just when we run out of it.
Bargain : A transaction in which each party thinks he has cheated the other.
Self Improvement - A Compilation

Overcoming your Ego
Ego - Is hollow or/and related to all that is temporary.
Ancient wisdom tells us that ego is detrimental to your self-
Ego - The self especially as contrasted with another self or the world"
development as it encourages self-importance while decreasing
Ego- "Your idea or opinion of you own self or a great feeling of your
self-realistion, which is so important to an individual's spiritual
own importance and ability".
development. However, in today's modern world where it is normal
to place ooneslef at the centre of the world, many question the need Seven Steps for Overcoming Ego
to fight egotism. Here are a few quotes to highlight the destructive Here are seven suggestions to help you transcend ingrained ideas of
power of ego and 7 ways you can overcome your ego and attain a self-importance. All of these are to help prevent you from falsely
peaceful and balanced life. identifying with the self-important ego.
What is ego? 1. Stop being offended.

Ego - an inflated feeling of pride in your superiority to others. If you're looking for occasions to be offended, you'll find them at
Ego - in the sense of spirituality, it's basically your sense of self every turn. This is your ego at work convincing you that the world
relative to others. The "I, me, my, mine" factor. shouldn't be the way it is. Instead, you can become an appreciator of
life and do what best you can do for welfare of others with the things that you leave the peace and the gratitude of your Source.
feeling of non-doer-ship. Look for the peace within by identifying Remain ever grateful to the Source.
with real self - the 'satta'.
7. Let go of your reputation.
2. Let go of your need to win. Your reputation is not located in you. It resides in the minds of others.
Ego loves to divide us up into winners and losers. However, winning Therefore, you have no control over it at all. If you speak to 30 people,
is impossible all the time. Someone out there will be faster, luckier, you will have 30 reputations. Connecting to 'satta' means listening to
younger, stronger, and smarter-and back you'll go to feeling worthless your heart and conducting yourself based on what your inner voice
and insignificant. tells you is your purpose here. If you're overly concerned with how
you're going to be perceived by everyone, then you've disconnected
While you may enjoy competing, you need to let go of the need to
yourself from 'satta' and allowed the opinions of others to guide you.
win by letting go of the thought that the opposite of winning is losing.
This is your ego at work. It's an illusion that stands between you and
That's ego's fear. Be the observer, noticing and enjoying it all without
the power of intention.
needing to win a trophy.
The 12 Tenets of Motivation
3. Let go of your need to be right.
Just like we like our food spiced up, motivations are what make like
Ego is the source of a lot of conflict and dissension because it pushes
worth living and each moment worth waiting for. Here are a few tips
you in the direction of making other people wrong. When you're
on how to remain motivated this year, as troubles and good fortune
hostile, you've disconnected from the power of intention. The creative
come to us in the mixed bag called life.
Spirit is kind, loving, and receptive; and free of anger, resentment, or
bitterness. Letting go of your need to be right in your discussions and 1. Approach each problem in the pursuit of the truth, not just to find
relationships is like saying to ego, I'm not a slave to you. what you hope for
2. Be determined. Never give up, be resilient, for this is the
4. Let go of your need to be superior.
truest wisdom.
True nobility isn't about being better than someone else. It's about
3. Strengthen your sense of identity, which helps you find the
being better than you used to be. Stay focused on your spiritual
right path.
growth, with a constant awareness that no one on this planet is any
4. Be cool headed and keep a low profile, so you can lead from the
better than anyone else. Improve your present and future will take
ranks and take firm decisions.
care of itself. Have the feeling of equality - samta-bhav.
5. Don't shy from struggle; its part of your existence and at the end
5. Let go of your need to have more. of struggle comes understanding and reward.
The mantra of ego is more. It's never satisfied. No matter how much 6. Never give up hope, for when one door to happiness is closed,
you achieve or acquire, your ego will insist that it isn't enough. You'll another will open.
find yourself in a perpetual state of striving, and eliminate the 7. Protect your freedom and that of the other man; freedom's what
possibility of ever arriving. Yet in reality you've already arrived, and you do with what's been done to you.
how you choose to use this present moment of your life is your 8. Plan your list of actions and set your priorities before you begin
choice. Ironically, when you stop needing more, more of what you work. Good plans shape good decisions and good fortune follows.
desire seems to arrive in your life. 9. Work as part of a team and you can succeed best by helping
6. Let go of identifying yourself on the basis of your achievements. others succeed.
God writes all the music, God sings all the songs, God builds all the 10. Develop your physique, mentality and character, especially the
buildings, God is the source of all your achievements. One can hear last because you a re lost without this.
your ego loudly protesting. Nevertheless, stay tuned to this idea. All 11. Value the pursuit of knowledge; the more you get, the more
emanates from Source! You and that Source are one! you'll want.
12. Place the highest value on time, not just spending it, but investing
The less you need to take credit for your achievements and the more
it in the right work.
connected you stay to 'satta', the more you're free to achieve, and
the more will show up for you. It's when you attach yourself to those
achievements and believe that you alone are doing all of those

Credai Magazine - April - 2010

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Issue

Private Equity Investments -

Meridian City, USA :

"We consider CREDAI

Quarterly in house magazine of CREDAI National

President's Address 7 EDITORIAL BOARD

Service Tax Issues - Post Budget 24 Uzma Irfan

Using the sun to sterilize water 31

India's Real Estate Sector In Quiet Revolution Mode 33 CONTENT

Landscape & Me 45 DESIGN & LAYOUT

World Expo in Shanghai - Shanghai stakes a claim to Asia's premier city 52

Event report - Realty Expo 2010 by CREDAI Bengal 56

MCHI signs Joint Declaration with Maharashtra Govt; 59

CSR Initiative - VGN Homes adds school projects 63 Resident Director,

Event Report - Property 2010 Thane 63 Confederation of Real Estate Developers'

CREDAI Vizianagram inaugurated 69 Ph: 011- 43126262, 43126200

Fax - 011- 43126211

We've been debating and dissecting the proposed Real

Real estate is a complex industry and each real estate

The Retail Mall As We Know It

It all began when Gruen was asked by a friend in 1939 to design a

What started as an idea that drew

The Intelligent Building

The concept of energy management and building automation was fanciful

it has grown from a group of selectstore for the future.

Specific instances can be recounted from many areas, especially in voice to

A study by Ernst & Young recently submitted to CREDAI encourages

For instance, the Maharashtra Chamber of Housing Industry (MCHI)

The recent announcement of the

Private developers feel they cannot address the problem of housing

The Jawaharlal Nehru National Urban Renewal Mission

Responses poured in and continue to be received well after the

largest employer event.

and still Discuss and finalize in

unorganized, the consultation with

effort in creating UIDAI the simplified

identity to 50 recruitment form for

million odd group registration

construction through their S.Suresh Hari

herculean task. Sensing the prospects of CREDAI involvement in the Associations.

of 4 Southern States. CREDAI HQ to keep update of progress and report at regular

Issue Abatement Scheme-Notn. 1/2006 Notification Works Contract-

Does gross amount include No, despite FM's No No

Is the Developer/Builder required No No Yes

Using the sun to sterilize water

E of our rural population is deprived of clean drinking EDITOR'S BOX

SPACE FOR SHOPPING

capitals, like, Washington, outstanding urban

Endow your thoughts with Faith, Your deeds with

The design of the New Delhi was

complex (Viceroy Palace and

The Connaught Place was conceived as

No piecemeal development was to be allowed and

Therefore, Indian fraternity of architects must

Therefore, even while practicing modern

Therefore, there is an imperative

One other interesting assignment that came by was a Seaside Resort

Beach Resort, Chennai InfosysCampus InfosysCampus

Building housing in the Rs. 3-10 lakh range in a commercially

Figure 1: Housing life-cycle cost-value

Intervention type Design - driven measures

1. Designing for better quality (without compromising saleable FSI)