THE HONEST AND GENUINE BUYERS OF APARTMENTS/FLATS WILL BE IN FOR ROYAL JOLT, IF THEY CHECK THE CREDENTIAL OF THE BUILDERS/DEVELOPERS REGARDING TAX COMPLIANCE.
MAJORITY ARE TAX EVADERS AND IF FOUND OUT, THEY WILL ELIMINATE THE OFFICER AS THEY DID TO LATE.D.K.RAVI. IT IS THE LAND/BUILDERS MAFIA.
THEY MUST BE INVESTIGATED BY THE COMMERCIAL TAX DEPARTMENT, INCOME TAX DEPARTMENT, ENFORCEMENT DIRECTORATE, SERIOUS FRAUD INVESTIGATION OFFICE, BANGALORE METROPOLITAN TASK FORCE, COD AND THE CENTRAL BUREAU OF INVESTIGATION, JOINTLY AND ALL OF THEM WILL BE BEHIND BARS FOREVER FOR CHEATING, FRAUD, MISREPRESENTATION OF FACTS, TAX EVASION, FRAUDULENT MANIPULATION, FORCED OR COERCED PURCHASE OF LANDS FROM INNOCENTS.
IT IS SUSPECTED THAT BUILDERS (MAFIA) AND A SMUGGLER TURNED JEWELLER ALONG WITH A POWERFUL POLITICIAN BEHIND THE KILLING OF LATE.D.K.RAVI.
POLITICALLY POWERFUL REALTOR GROUP, WHICH ACQUIRED HUGE STRETCH OF PROPERTIES, EVER SINCE, THE ARRIVAL OF NEW GOVERNMENT IN THE STATE IS UNDER THE SCANNER OF ENFORCEMENT DIRECTORATE AND SCRUTINY BY THE INCOME TAX DEPARTMENT.
THE AGENTS, DIRECTORS, SELLERS AND BUYERS ARE IN THE NET.
IT IS SAID THAT THE CATCH WILL BE HUGE WITH LOTS OF INPUTS FROM DIFFERENT SOURCES.
IT IS ALSO SAID THAT THIS NEW GROUP EMERGED, ALL OF A SUDDEN FROM THE BRINK, RAISING SUSPICION.
RBI HAS DIRECTED ALL THE BANKS NOT TO OVER VALUE THE PROPERTIES WHICH INCLUDES STAMP DUTY, REGISTRATION FEE, SERVICE TAX, VAT AND OTHER ADDITIONS, WHILE PROCESSING THE HOME LOANS, AS THE REGULATOR RECEIVED COMPLAINTS OF SUCH DISCREPANCIES BY SOME OF THE BANKS.
THE INCOME TAX DEPARTMENT IS EXAMINING THE HOME LOANS APPLICATIONS AND SANCTIONS AS IT IS NOTICED THAT MANY ASSESSEES HAVE FILED THE TAX RETURNS, WHICH HAVE SOME UNDISCLOSED TRANSACTIONS, TO AVOID THE PAYMENT OF TAXES.
THE BUYERS ENTER INTO AN AGREEMENT OF SALE WITH THE BUYER FOR XXXXX PRICE AND SUBMIT THE SAME FOR HOME LOAN SANCTION AND REGISTER THE SAME PROPERTY FOR THE LESSER VALUE TO AVOID OR EVADE INCOME TAX, STAMP DUTY AND REGISTRATION FEE. THE INCOME TAX DEPARTMENT IS COLLECTING INFORMATION OF SUCH TRANSACTIONS AND TAX EVADERS WILL BE PENALISED. THEHOME LOAN BUYERS ENTER INTO A SALE AGREEMENT FOR THE ACTUAL VALUE OF THE PROPERTY OR HIGHER VALUE OF THE PROPERTY TO AVAIL LOANS AND AT THE TIME OF REGISTRATION, REGISTER THE SAME FOR LESSER VALUE TO EVADE INCOME TAX, SALES TAX, SERVICE TAX, STAMP DUTY AND REGISTRATION FEE.
PROPERTY BUYERS WHO HAVE AVAILED LOAN HAVE ALSO ENTERED INTO SEVERAL DUBIOUS AGREEMENTS AND THE BUILDERS COLLECT THE PAYMENT UNDER VARIOUS HEADS AND IN DIFFERENT NAMES, BUT ARE CAUGHT, AS THEY HAD ENTERED INTO THE AGREEMENT OF SALE AND THESE ARE OFFICIALS DOCUMENTS, BASED ON THESE DOCUMENTS THE LOAN IS SANCTIONED.
AMONG OTHER FISCAL MEASURES TO CONTAIN THE EVER INCREASING AND UNCONTROLLED INFLATION, THE GOVERNMENT AND THE RBI PROPOSE TO INCREASE THE INTEREST RATES, HOPING THAT THIS MOVE WILL HALT THE GALLOPING TREND, SO FAR, ALL THE ECONOMICAL MEASURES FAILED TO CONTAIN THE PACE OF INFLATION.
HOME LOAN INTEREST MIGHT REACH UP TO 12% BY DECEMBER, 2011.
There has been a substantial increase in bad loans and this is primarily because public sector banks have been very lenient on willful defaulters and on real estate sectors. The Reserve Bank of India (RBI) has asked banks to focus on recovery and follow a stringent credit appraisal procedure. The RBI has asked banks to remain cautious in the wake of a higher-than-expected rate hike that could have an adverse impact on the asset quality of banks. The RBI has directed the banks to monitor their asset qualities on a regular basis, especially with interest rates steadily inching upwards. This is the result of the recent downgrade of the country’s largest lender State Bank of India by credit rating agency, Moody’s Investor Services.
In the wake of surging NPA levels, banks have decided to get to tough on willful defaulters — borrowers who have not repaid their dues despite having the capacity to do so. An estimated Rs. 11,000 crore of funds are locked up with willful defaulters.
State-owned banks have witnessed a surge in the level of bad assets (loans) or NPAs in recent times. The gross non-performing assets (NPA) of public sector banks stood at Rs. 71,047 crore for the period ended March, 2011. A loan that stops earning interest after 90 days is defined as an NPA.
According to Crisil, the Indian arm of global ratings major Standard and Poor’s, a slowdown in economic growth and increases in equated monthly installments (EMIs) resulting from subsequent rate hikes by the RBI, would also increase banks’ NPAs. Rising interest rates would increase the EMIs of home loan borrowers alone by about Rs. 6000 crore annually,” the study said.
The Reserve Bank of India (RBI) has raised the policy rate (the repo rate) eleven times by a cumulative 325 basis points (bps) since October 2009 and proposes to increase it again to contain the heated inflation rate.
The increase in the Base Rates/Benchmark Prime Lending Rates (BPLRs) of banks, consequent upon increase in policy rate by the RBI, may result in increase in EMIs particularly in respect of loans which are contracted at floating rates.
The Commercial banks have been increasing both their deposit and lending rates as per the directions of the RBI. While the borrowers pay high interest rates when the lending rates go up consequent upon hike of policy rates by RBI, the Scheduled Commercial Banks (SCBs) also raise their deposit rates which have increased in the range of 25-500 basis points (bps) since March 2010 across all maturities.
The Reserve Bank today said the option of going for another round of rate hike at its next mid-quarterly policy review in September do exist as inflationary pressure continues in the economy.
The present inflation rating is between 9% and 11% and It is further said the short-term target is to bring down headline inflation to 6% to 7% and further ease it to 3% to 4% in the medium-to-long term, the finance ministry and the RBI have already initiated a strong and tough economic measure to mitigate the onslaught of inflation through various fiscal and economical measures.
THE RESERVE BANK OF INDIA MIGHT INCREASE THE REPO RATE AND THE LENDING RATES OF THE BANKS WILL ALSO GO UP.
The rate increase is its eleventh since March 2010, making the RBI one of the most aggressive inflation fighters among central banks.
This has taken the market by surprise as most analysts expected the central bank to be more dovish and only announce a 25 basis point repo rate hike given the threat to India’s industry growth due to increased interest rates.
Banks Can Give up to 90 Percent on Home Loans not exceeding Rs. Rs 20 Lakh
The RBI has empowered the Banks to give up to 90 per cent of the value of the property in case of small value home loans up to Rs 20 lakh.
But in case of loans above Rs 20 lakh, the loan to value ratio (LTV) should not exceed 80 per cent.
Following the announcement in the second quarter review of the Monetary Policy, the RBI today issued the circular putting a regulatory ceiling on the LTV ratio in respect of banks’ housing loan exposures, in order to prevent excessive leveraging by banks. Currently, there is no regulatory ceiling on the LTV ratio in respect of banks’ housing loan exposures.
With regard to ‘teaser loans’ (comparatively lower rates of interest in the first few years, after which rates are reset at higher rates), the RBI said this practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective.
In view of the higher risk associated with such loans, the standard asset provisioning on the outstanding amount has been increased from 0.40 per cent to 2 per cent with immediate effect. The provisioning on these assets would revert to 0.40 per cent after one year from the date on which the rates are reset at higher rates if the accounts remain ‘standard’, the RBI said.