Taxation & Finance

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Ludhiana Municipal Corporation urges timely property tax payments to avoid penalties

The Ludhiana Municipal Corporation (MC) has reminded residents to pay their 2024-25 property tax by December 31 to avoid a 10% penalty. Payments made before the deadline will incur no penalties, while delays beyond March 31 will attract a 20% penalty and 18% annual interest on outstanding amounts. To facilitate timely payments, Suvidha Kendras will remain open on December 28 and 29. The MC is also promoting digital payment options for convenience. Property tax revenues fund essential city services such as waste management, road maintenance, and community projects. Residents are encouraged to act promptly to contribute to Ludhiana's development....

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Private equity investments in Indian real estate rise to USD 4.2 billion in 2024 led by warehousing and residential sectors

Private equity (PE) investments in Indian real estate reached USD 4.2 billion in 2024, a 32% rise from the previous year, driven by warehousing and residential sectors. Warehousing led with USD 1.9 billion (45% of total), a 136% increase, fueled by e-commerce growth. Residential investments doubled to USD 1.2 billion, showing a 104% rise due to recovering housing demand. Mumbai attracted 50% of PE inflows, with USD 2 billion largely in warehousing. The UAE emerged as the top foreign investor, contributing USD 1.7 billion. Despite a 38% drop in office sector investments, the market shows strong potential across key segments and regions....

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IndiQube plans INR 850 crore IPO to expand managed workspace network

IndiQube Spaces, a Bengaluru-based managed workspace provider, has filed its draft red herring prospectus (DRHP) with SEBI for a INR 850 crore IPO. The offering includes a fresh issue of INR 750 crore and an offer for sale (OFS) of INR 100 crore by promoters Rishi Des and Meghna Agarwel. The funds will support expansion plans, with INR 462.6 crore allocated for new centers, INR 100 crore for debt repayment, and the remainder for corporate purposes. Operating 103 centers across 13 cities, IndiQube manages 7.76 million sq ft, catering to hybrid work demands. With FY24 income at INR 867.6 crore, the IPO reflects the rising demand for flexible workspaces. ICICI Securities and JM Financial are the lead managers....

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Hubballi-Dharwad Municipal Corporation targets INR 25 crore property tax collection from railway properties

The Hubballi-Dharwad Municipal Corporation (HDMC) has initiated efforts to collect property tax from railway properties following a 2009 Supreme Court ruling affirming their taxability. Spread across four zones, these properties include workshops, hospitals, quarters, and the main railway station. In collaboration with South Western Railways, HDMC plans to assign Property Identification Numbers (PIDs) to assess tax rates based on property usage. With projected revenue of INR 25 crore, this initiative aims to bolster HDMC's finances for infrastructure and public services. The process, set for completion by March, highlights inter-agency coordination to enhance civic administration....

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Ahmedabad housing projects see cost escalation as AMC replaces blacklisted contractors

The Ahmedabad Municipal Corporation (AMC) has incurred a INR 45.94 crore cost overrun after blacklisting two firms for failing to complete housing projects in Motera and Thaltej. The Motera-Koteshwar project, originally tendered at INR 67.53 crore, now requires INR 104.36 crore to complete, while the Thaltej project's cost rose from INR 11.75 crore to INR 20.86 crore. New contractors have been appointed, but recovering the additional expenditure from the blacklisted firms remains uncertain. The delays highlight AMC's challenges in contractor accountability and project management, emphasizing the need for stricter monitoring and efficient governance to ensure timely, cost-effective housing development....

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Ventive Hospitality IPO oversubscribed 9.82 times raising INR 1,600 crore

Ventive Hospitality, backed by Blackstone, saw overwhelming demand for its INR 1,600 crore IPO, oversubscribed 9.82 times. Investors bid for over 14.17 million shares, with non-institutional investors leading at 13.87 times subscription. Qualified institutional buyers (QIBs) and retail investors subscribed 9.08 and 5.94 times, respectively. The IPO, priced at INR 610, INR 643 per share, raised INR 719 crore from anchor investors. Funds will primarily reduce debt. Ventive owns 11 luxury properties in India and the Maldives, partnering with brands like Marriott and Hilton. This marks a strong recovery in India's hospitality sector, projected to grow over 10% CAGR post-pandemic....

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Asian Development Bank invests USD 70 million in Vastu Housing Finance

The Asian Development Bank (ADB) has invested USD 70 million (INR 595 crore) in Vastu Housing Finance to enhance affordable home loans for underserved communities in India. Fifteen percent of the funding is allocated for first-time homebuyers, with a focus on empowering women through homeownership. Vastu, founded in 2015, specialises in financing low-income and self-employed individuals in Tier II to IV towns, addressing housing challenges in these segments. This initiative aligns with efforts to bridge India's affordable housing gap and promote inclusivity, marking a significant step toward sustainable development and improved living conditions for economically weaker sections....

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Surat: Real estate thrives with INR 829 crore in FSI revenue collections

Surat's real estate sector has witnessed remarkable growth, with the Surat Municipal Corporation (SMC) earning INR 829 crore from paid Floor Space Index (FSI) in nine months, projected to surpass INR 1,100 crore by year-end. Revenues have nearly doubled in three years, reflecting strong property demand. However, challenges persist, including INR 225 crore in unpaid FSI dues, rising jantri rates, and a proposed 18% GST on paid FSI, which could increase property costs by 10%. Developers and CREDAI warn these factors may deter middle-class buyers, who form 70% of the market, emphasizing the need to balance growth and affordability....

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Maharashtra to refine RR rates with GIS mapping of land parcels

Maharashtra's Ready Reckoner (RR) rates are set to become more accurate as the Geographic Information System (GIS) mapping of land parcels nears completion. The Maharashtra Remote Sensing Application Centre (MRSAC) has finalized rural mapping and completed 50% of urban and influence zones. GIS mapping will replace the current subjective process by integrating precise geospatial data, offering clearer insights into property values. This will aid in setting RR rates for 2024, reflecting accurate market conditions and benefiting citizens and evaluators. The updated system will use cadastral maps, population data, and infrastructure developments to establish RR rates, ensuring transparency and reducing arbitrary rate assignments....

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Mizoram advances land management with digitisation and tax reforms

The Mizoram government collected INR 8.58 crore in stamp duties and land registration fees in the first eight months of FY24, reflecting steady growth following the Indian Stamp (Mizoram Amendment) Bill, 2024, which raised stamp duty from 1% to 3%. This hike targets diverse transactions like land purchases, mortgages, and gifts, aiming to boost state development funds. Key initiatives include plans for a revenue court to address land disputes, expanding the online tax payment system statewide, and digitising land records via the new Record of Rights (RoR). These measures enhance transparency, streamline processes, and support urbanisation and infrastructure growth, positioning Mizoram for increased investment and efficient land management....