Even because the Brihanmumbai Municipal Corporation (BMC) is going through a loss in belongings tax collection, many builders within the city are its largest defaulters.
According to the records accessed by means of HT, the Housing Development and Infrastructure Limited (HDIL) owed BMC Rs155.Ninety-three crores at the quiet of 2016-17. Kohinoor Planet is yet to clean Rs28.04 crore in dues, observed via Sahara Hospitality and Lokhandwala Kataria Construction Private Limited with dues of Rs4.87 crore and Rs3.Seventy-eight crore.
The BMC plans to auction residences of defaulters in the event that they fail to clear their dues.
In his finances speech, civic leader Ajoy Mehta’s said the BMC had collected simplest Rs3,629.58 crore in belongings tax as towards it target of Rs5,400.41 crore in 2016-17.
The Shiv Sena these days exceeded a resolution waiving assets tax for homes with a carpet place of as much as 500 square feet and giving concession to proprietors of homes between 500 rectangular ft and seven-hundred rectangular ft. This is probably to bring about a loss of Rs600 crore to the BMC. Sarang Wadhawan, a vice-chairman and coping with a director of HDIL, said, “In the case of a number of the houses, the societies have already been formed however the switch playing cards are but to be issued. So the property payments are within the call of HDIL when it must be ideally paid by way of the societies.”
Senior civic officials showed that notwithstanding numerous notices, the BMC has now not received the dues yet. A senior civic authentic said, “In some cases, we’re limiting movement as those also are slum rehabilitation projects. In the case of a default, we impose a 2% penalty, reduce water-deliver and troubles notices to the owners.”
In the case of HDIL, the civic frame has issued notices to 17 residences in Bandra (East), one in Bandra (West), one in Goregaon and 13 in Mulund. It is likewise within the procedure of slicing water-deliver to houses inside the Kurla and Bhandup wards.
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In another case, the BMC has issued notices to 23 properties of Kohinoor Planet. A consultant from Kohinoor stated that because the possession of properties has been transferred to the shoppers, the notices should be in their names. “However, on the grounds that there’s a put off in the switch, we have been issued notices.”
A representative from Sahara Hospitality stated the exchange in a Mumbai computation of property tax wished body builder redressal.
The trade additionally led to the delays, said the consultant.The representative stated, “Accordingly, the property tax turned into reassessed. A part of it has already been paid and the relaxation may be cleared in a due route of time.” Despite repeated attempts, representatives of Lokhandwala had been unavailable for a remark.
At Rs 14,000 crores, assets tax and octroi have been BMC’s largest sources of earnings till ultimate 12 months. However, with the appearance of the goods and services tax (GST), BMC is being compensated by the country authorities every month. The monetary transition additionally led to BMC down-sizing its budget by way of Rs 11,000 crores inside the budget for 2017-18.
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“Fiduciary” is basically defined by Black’s Law Dictionary as a term derived from the Roman law which means, as a noun, a person or legal entity, holding the character of a trustee, with respect to the trust and confidence involved as scrupulous good-faith and candor towards another’s affairs. A fiduciary also has duties which are described as involving good-faith, trust, special confidence, and candor toward another’s interests. Typical fiduciary duties are imposed on and include such relationships as executor, administrator, trustee, real estate agents, attorneys, and, of course, property managers. A person or company who manages money or property, i.e., the manager, for other people must exercise a standard of care in that the interests of the money or property owners are placed above and beyond those of the property manager. In some states, like California for example, a property manager is statutorily defined as an individual or entity which has the same duties as a trustee, i.e., a fiduciary.
The way I always explain it to clients, using my hands to demonstrate, is that my interests end at the top of my head (one hand at the crown of my head), but the client’s interest rise above and beyond my head and take precedent over my own (holding both of my hands above my head in a clasped position). Most people understand the gesture and comprehend that as a property manager and a lawyer my interests are much lower than those of the clients in our relationship.
Common Fiduciary Duties Owed by Property Managers
Since a property manager is a fiduciary they must act with the highest good-faith and fair dealing with respect to the owner’s asset, disclose all material information that may affect the owners decision-making with respect to that asset, and can’t in any way, shape or form act adversely to the owner’s interests. This may sound easy, but there are situations that arise that tempt even the best property managers to sometimes not act in their client’s best interests to suit their own self-interested convenience. Unfortunate as that may sound it happens regularly.
The following is a short list of some common sense duties, rights, and wrongs when a fiduciary
relationship exists between a manager and an owner.
A manager should have a written agreement with their clients and may even be legally entitled to profit from services for which they provide to the owner, however, a manager may not secretly profit from this relationship. For example, a manager may charge an eight percent markup on materials and services provided by vendors to the owner’s property. This is legal and acceptable provided that the agreement between the parties is in concert with the markup. If this markup was not in the agreement then the law requires a property manager to disgorge or relinquish any and all secret profits derived from the relationship. There are so many possible examples of this, but a common one is a manager making a percentage profit on work and services provided to their clients but not disclosed; like a new roof, bathroom remodels, repairs to interior walls, etc.
A property manager is required to disclose any and all rental offers received along with documentation of those offers such that the property owner is well informed about all potential tenants. It is easy for a manager to fail to provide names of potential tenants that don’t necessarily qualify or are poor credit risks as this would involve more work for the manager.
A property manager is statutorily required to act for the sole benefit of the asset owner in matters that evolve from the relationship, whether or not those matters are seemingly insignificant or they are significantly material.
Information about a tenant who falls behind on their rent must be immediately communicated to the asset owner. If your management company is using a software system that allows an “Owner Portal” then this information is readily available to see and anytime one has access to the internet.