MANY of us cling to the idea that we’re somebody. We seek the comfort of name and fame. This identity seems to keep us alive.
As long as we feel we’re a separate entity, a unique individual, we’ll want to hold on to that distinction. We’ll want to find a distinct place. We believe that we are something special and superior to others. But let us be very clear here. We are all of the same energy. Our differences are in form and matter not in energy and substance.
With this idea of separation from others we run into resistance with our inner self. We resist our own self.
This happens everywhere. There is no exception to this rule. It’ll happen wherever we begin to cling to the idea that we’re somebody. It can happen at home or office or workplace or office or industry. It’s sure to happen. If we disappear into the collective consciousness, we’ll be protected again and again. We’ll be taken care of. We’ll attain complete success in all spheres. We’ll attain success beyond the social and economic spheres. We’ll experience it as fulfilment. This feeling is inexplicable. When we feel separated we resist. When we resist we are in trouble.
A small story: A man was told that his wife had fallen into the river. He had to jump into the water and save her. He immediately jumps into the water. To the astonishment of onlookers, he starts swimming against the current. One person asked him, “Hey, why are you swimming against the current?” The man replied, “You guys don’t know my wife. Even if she falls in the river, she’ll float against the current.
She resists everything so much. I’m sure that she’ll try to resist the current.”
So long as we resist, as long as we don’t disappear into the collective consciousness, we’ll be endlessly creating hell, not only for ourselves, but also for those around us. This is the truth. This truth operates whether it is our workplace or our house or our company or any other place.
This same teaching is contained in Taoism, the ancient Chinese philosophy. Tao is all about flow; it’s about flowing with nature. Water’s the greatest illustration of such natural flow. It just flows about the landline, around obstacles, in a smooth and energetic fashion. Tao talks about the reeds in water that bend with strong water flow and straighten up when the flow is weaker. That can only happen when we don’t imagine ourselves to be different from our environment. Be one with the nature. Merge with it completely.
Extract from Teachings of - PARAMAHAMSA SRI NITHYANANDA
Thursday, August 28, 2008
Tuesday, August 26, 2008
Borrowers struggling to repay loans can file for insolvency
WITH many borrowers finding it difficult to service their loans owing to increasing interest rates and inflation, banks and financial institutions are anticipating a grim scenario of ballooning defaults. According to industry sources, of late, bad debts have risen from 5-7% to 14-19% for some banks.
Borrowers struggling with repayments can consider these options: approaching the lenders for an out-of-court settlement; enlisting the help of credit counselling centres to work out a debt management package through negotiations with banks, and filing for insolvency.
The third alternative, though, is largely used by the business class, as the stigma attached to it keeps the common man away. However, debtors need to remember that it is a legally tenable option and can act as a shield against harassment by creditors.
A petition for being declared as an insolvent has to be moved before the court under the Provincial Insolvency Act, 1920, or the Presidency Towns Insolvency Act, 1909. While the Presidency Insolvency Act is applicable to the Presidency Towns viz Calcutta, Bombay and Madras, the Provincial Insolvency Act pertains to the whole of India except these towns. Such a petition can be filed from the creditors’ end too.
“In the Presidency Towns Insolvency Act, the borrower is declared an insolvent as soon as the petition is filed, whereas in case of the Provincial Insolvency Act, the court sends a notice to the creditors to ensure that the insolvency is genuine. Only after the creditors give a green signal does the court declare the borrower insolvent,” informs S Vasudevan, senior partner at Chennai-based legal firm Vasudevan & Associates.
The debtor has to be present on the occasion to furnish proof that can satisfy the court of his/her inability to repay debts. The court can also issue directions for assessing the debtor’s estate. The creditors, on their part, need to file the claim once the court publishes the matter of insolvency in its official gazette. It’s mandatory for creditors to claim their share; else, the borrower is not obligated to pay them. Their claims need to be backed by a book of accounts and the statement of transactions reflecting the amount owed by the borrower. Once the assigned official verifies the authenticity of documents, the repayment process begins with the liquidation of assets. However, unlike a routine loan repayment, the interest rates are not linked to the market rates, but are usually decided by the court. For instance, the court can intervene to bring down the payable interest rate of 40% to as low as 6%.
Unsecured creditors are accorded the priority while disbursing the sale proceeds of the debtor’s assets (after deducting the court’s expenses). Secured creditors have to sell the collateralised assets and the official assignee will repay the balance amount from the realised sum. Often, the debtor is not in a position to pay off all the debts; in such cases, the share of each creditor is determined by the court after the sale of assets. Elaborates Mr Vasudevan: “Let’s assume the total debt of an individual aggregates to Rs 50 lakh. His total assets, which include his house and other investments, amount to Rs 20 lakh. So, the secured creditors will get Rs 10 lakh from the sale of assets, while the balance Rs 10 lakh will be distributed among the unsecured creditors.
The ratio determined by the court’s official assignee.” It is always advisable to look at declaration of insolvency only after exhausting all other options in order to avoid the restrictions that come with the ‘insolvent’ tag. “The declaration of a person as an insolvent results in virtual civil death of a person and imposition of various restrictions including the appointment of receiver on the assets of the insolvent and even the arrest and punishment of the debtor,” cautions Maneesha Dhir of Dhir & Dhir Associates, and the secretary of INSOL India, an association of lawyers and accountants specialising in insolvency.
If you do not wish to get into legal tangles, you could consider approaching credit counselling centres like DISHA and Abhay. While there exists a view that such entities can help only if the debtor has some assets to show, VN Kulkarni of Abhay refutes the notion. “Credit counselling centres can assist in drawing up a debt resolution plan and can guide the borrowers on approaching the banks. They can also help in working out a package facilitating repayment in affordable installments,” he says.
Under no circumstances should filing for insolvency be looked upon as a means to evade repayments as it could result in detention of up to three months in a civil prison.
Borrowers struggling with repayments can consider these options: approaching the lenders for an out-of-court settlement; enlisting the help of credit counselling centres to work out a debt management package through negotiations with banks, and filing for insolvency.
The third alternative, though, is largely used by the business class, as the stigma attached to it keeps the common man away. However, debtors need to remember that it is a legally tenable option and can act as a shield against harassment by creditors.
A petition for being declared as an insolvent has to be moved before the court under the Provincial Insolvency Act, 1920, or the Presidency Towns Insolvency Act, 1909. While the Presidency Insolvency Act is applicable to the Presidency Towns viz Calcutta, Bombay and Madras, the Provincial Insolvency Act pertains to the whole of India except these towns. Such a petition can be filed from the creditors’ end too.
“In the Presidency Towns Insolvency Act, the borrower is declared an insolvent as soon as the petition is filed, whereas in case of the Provincial Insolvency Act, the court sends a notice to the creditors to ensure that the insolvency is genuine. Only after the creditors give a green signal does the court declare the borrower insolvent,” informs S Vasudevan, senior partner at Chennai-based legal firm Vasudevan & Associates.
The debtor has to be present on the occasion to furnish proof that can satisfy the court of his/her inability to repay debts. The court can also issue directions for assessing the debtor’s estate. The creditors, on their part, need to file the claim once the court publishes the matter of insolvency in its official gazette. It’s mandatory for creditors to claim their share; else, the borrower is not obligated to pay them. Their claims need to be backed by a book of accounts and the statement of transactions reflecting the amount owed by the borrower. Once the assigned official verifies the authenticity of documents, the repayment process begins with the liquidation of assets. However, unlike a routine loan repayment, the interest rates are not linked to the market rates, but are usually decided by the court. For instance, the court can intervene to bring down the payable interest rate of 40% to as low as 6%.
Unsecured creditors are accorded the priority while disbursing the sale proceeds of the debtor’s assets (after deducting the court’s expenses). Secured creditors have to sell the collateralised assets and the official assignee will repay the balance amount from the realised sum. Often, the debtor is not in a position to pay off all the debts; in such cases, the share of each creditor is determined by the court after the sale of assets. Elaborates Mr Vasudevan: “Let’s assume the total debt of an individual aggregates to Rs 50 lakh. His total assets, which include his house and other investments, amount to Rs 20 lakh. So, the secured creditors will get Rs 10 lakh from the sale of assets, while the balance Rs 10 lakh will be distributed among the unsecured creditors.
The ratio determined by the court’s official assignee.” It is always advisable to look at declaration of insolvency only after exhausting all other options in order to avoid the restrictions that come with the ‘insolvent’ tag. “The declaration of a person as an insolvent results in virtual civil death of a person and imposition of various restrictions including the appointment of receiver on the assets of the insolvent and even the arrest and punishment of the debtor,” cautions Maneesha Dhir of Dhir & Dhir Associates, and the secretary of INSOL India, an association of lawyers and accountants specialising in insolvency.
If you do not wish to get into legal tangles, you could consider approaching credit counselling centres like DISHA and Abhay. While there exists a view that such entities can help only if the debtor has some assets to show, VN Kulkarni of Abhay refutes the notion. “Credit counselling centres can assist in drawing up a debt resolution plan and can guide the borrowers on approaching the banks. They can also help in working out a package facilitating repayment in affordable installments,” he says.
Under no circumstances should filing for insolvency be looked upon as a means to evade repayments as it could result in detention of up to three months in a civil prison.
A matter of life and death
THE oldest enemy of religion has always been evil in all its various forms of Shaitan, Iblis, Ravana, Mara, Beelzebub, etc.
In fact, the most basic fear of practising theosophies has been that these represent forces with the potential to corrupt and even destroy divine relationships and beliefs in human beings.
With the passing of time, however, the concept of something like a horned devil or a hundredheaded rakshas has not only become a bit quaint and old fashioned but almost comical. As a result, from about the 16th to 19th century onwards, religion subtly switched its prime disloyalty and made science instead an A-list adversary.
It had plenty of other reasons for doing so too. Copernicus and Galileo had displaced the exalted location of the Earth from being at the centre of the universe; Darwin was doing the same for humankind’s so-called unique position among all living creatures; Freud wrenched the heart’s traditional primacy of passion and replaced it with the head. Who needed Satan any more — especially with the advent of the 20th century and the birth of relativity and quantum physics which undermined most basic tenets of sacred belief? The birth of the universe with the Big Bang was the last nail in the coffin of all creation myths considered sacrosanct for thousands of years.
Nevertheless, as destructive as these discoveries may have been, over 90% of the world’s population are still believers and have not abdicated their devotion. But that could change in another matter of centuries, if not just decades, as science makes its most profound discovery to date — a way to prolong longevity to the point where death is no longer an option outside of accidental or self-induced occurrence. Such an event would have the capacity to reduce a whole section of the faith movement to rubble.
For it is a fact that in terms of redemption and deliverance death plays a determining role in the way a religion is practised. Without it the whole concept of Karma too could begin to fall apart. A non-physical component — such as a soul — even if it’s bound in a permanent corporeal body can still aspire towards a spiritual dimension, true, but the notion of its ultimate union with a higher entity or existence elsewhere would need to be seriously rethought. Those who wondered if science and spirituality could ever be compatible will perhaps find their answers soon.
In fact, the most basic fear of practising theosophies has been that these represent forces with the potential to corrupt and even destroy divine relationships and beliefs in human beings.
With the passing of time, however, the concept of something like a horned devil or a hundredheaded rakshas has not only become a bit quaint and old fashioned but almost comical. As a result, from about the 16th to 19th century onwards, religion subtly switched its prime disloyalty and made science instead an A-list adversary.
It had plenty of other reasons for doing so too. Copernicus and Galileo had displaced the exalted location of the Earth from being at the centre of the universe; Darwin was doing the same for humankind’s so-called unique position among all living creatures; Freud wrenched the heart’s traditional primacy of passion and replaced it with the head. Who needed Satan any more — especially with the advent of the 20th century and the birth of relativity and quantum physics which undermined most basic tenets of sacred belief? The birth of the universe with the Big Bang was the last nail in the coffin of all creation myths considered sacrosanct for thousands of years.
Nevertheless, as destructive as these discoveries may have been, over 90% of the world’s population are still believers and have not abdicated their devotion. But that could change in another matter of centuries, if not just decades, as science makes its most profound discovery to date — a way to prolong longevity to the point where death is no longer an option outside of accidental or self-induced occurrence. Such an event would have the capacity to reduce a whole section of the faith movement to rubble.
For it is a fact that in terms of redemption and deliverance death plays a determining role in the way a religion is practised. Without it the whole concept of Karma too could begin to fall apart. A non-physical component — such as a soul — even if it’s bound in a permanent corporeal body can still aspire towards a spiritual dimension, true, but the notion of its ultimate union with a higher entity or existence elsewhere would need to be seriously rethought. Those who wondered if science and spirituality could ever be compatible will perhaps find their answers soon.
New company law to post email as evidence
THE new company law, being drafted by the government, is likely recognise email as a valid piece of evidence.
With corporates relying on emails for bulk of their communication, the ministry of corporate affairs is planning to recognise electronic communication by corporates as evidence during company law prosecutions.
Regulatory changes in this regard would clear the air on the evidentiary value of electronic communication, including email. With the law yet to gain clarity on the subject, it is felt the move would tighten the noose around companies who bank on regulatory loopholes for self-defence.
Officials say the new company law, expected to be introduced in Parliament soon, would provide for necessary changes to this effect. The changes are likely to assist prosecuting agencies in their crackdown on infringement of company law provisions.
Today, there is no specific recognition of email as evidence. Officials point out the lack of clarity has often been exploited by companies facing prosecution. The inception of the ministry’s e-governance project has prepared the groundwork for initiating the move, point out officials. The project, MCA-21, has enabled computerisation of documents and records filed by companies.
The new company law has accorded substantial importance to both means to check corporate frauds as well as ways to crack them. The government feels the companies should not be let off due to lack of evidence. It is also learnt that the government at various levels is trying to harmonise related legislation such as Information Technology Act and Evidence Act on the subject to avoid regulatory overlaps.
Even as the company law awaits amendments to this effect, the Competition Commission of India (CCI) feels corporate emails could be crucial evidence in cartel investigations. CCI recommends enterprises to maintain a check on electronic correspondence of its marketing personnel and distributing agents to ensure they do not engage themselves in anti-competition activities.
Souvik Sanyal NEW DELHI souvik.sanyal@timesgroup.com
With corporates relying on emails for bulk of their communication, the ministry of corporate affairs is planning to recognise electronic communication by corporates as evidence during company law prosecutions. Regulatory changes in this regard would clear the air on the evidentiary value of electronic communication, including email. With the law yet to gain clarity on the subject, it is felt the move would tighten the noose around companies who bank on regulatory loopholes for self-defence.
Officials say the new company law, expected to be introduced in Parliament soon, would provide for necessary changes to this effect. The changes are likely to assist prosecuting agencies in their crackdown on infringement of company law provisions.
Today, there is no specific recognition of email as evidence. Officials point out the lack of clarity has often been exploited by companies facing prosecution. The inception of the ministry’s e-governance project has prepared the groundwork for initiating the move, point out officials. The project, MCA-21, has enabled computerisation of documents and records filed by companies.
The new company law has accorded substantial importance to both means to check corporate frauds as well as ways to crack them. The government feels the companies should not be let off due to lack of evidence. It is also learnt that the government at various levels is trying to harmonise related legislation such as Information Technology Act and Evidence Act on the subject to avoid regulatory overlaps.
Even as the company law awaits amendments to this effect, the Competition Commission of India (CCI) feels corporate emails could be crucial evidence in cartel investigations. CCI recommends enterprises to maintain a check on electronic correspondence of its marketing personnel and distributing agents to ensure they do not engage themselves in anti-competition activities.
Souvik Sanyal NEW DELHI souvik.sanyal@timesgroup.com
Goa’s church wants only safe, ‘upmarket family’ tourists
THE church in Goa wants the tourism industry to host only “upmarket and responsible family tourists” in the state. Having earned severe criticism for the shoddy handling of the Scarlett Keening case, the state’s church wants to re-draw the tourism policy with a clear focus on family tourists.
The Centre for Responsible Tourism (CERT), an affiliate of the church, has recommended that the policy will help attract more “upsegment, high spending tourists” to Goa. Their short visits would contribute more towards the state’s economy than the wandering hippies from the West who camp for long durations and bring disrepute to the state. The Goan church, known for its active role in determining the state’s social and political agenda, hopes to play a more participatory role in promoting the state as a safe family destination.
CERT, in association with the Federation of Small and Medium Hotels and Guest Houses (FOSAM), has submitted an interim report to the state government detailing the economic contributions of small tourist enterprises. The idea is to create an inclusive pattern that would allow locals to earn a share of the profit from the large number of tourists visiting Goa and keep tabs on the ‘quality’ of tourists.
The report proposes linking up hotels and other sectors such as agriculture, poultry farming, dairy industry and bakeries. “Like Kerala, we must use the luxury tax to support local industries. This will help both five-star resorts and traditional businessmen”, said CERT’S Anibel Comello.
The report demands the creation of better infrastructure at village levels. Challenging the Centre’s plan to create Special Tourism Zones for developing golf courses and casinos, the report stresses the need to promote Goan culture, customs and tradition and local cuisine.
“Goa needs to create better facilities to get better tourists. The quality of people visiting us will only improve if the quality of the product improves,” said CERT consultant Ranjan. He strongly advocates creating a “family environment” to dissuade lone tourists who are often accused of child abuse.
With the report tabled during the ongoing monsoon session of the assembly, both CERT and FOSAM hope to initiate a dialogue for a long-term sustainable tourism industry. “What we want is to create better facilities so that it becomes difficult for a low-budget tourist to come here. This way, we can attract more families here,” said FOSAM president Serafino Cota.
The Centre for Responsible Tourism (CERT), an affiliate of the church, has recommended that the policy will help attract more “upsegment, high spending tourists” to Goa. Their short visits would contribute more towards the state’s economy than the wandering hippies from the West who camp for long durations and bring disrepute to the state. The Goan church, known for its active role in determining the state’s social and political agenda, hopes to play a more participatory role in promoting the state as a safe family destination.
CERT, in association with the Federation of Small and Medium Hotels and Guest Houses (FOSAM), has submitted an interim report to the state government detailing the economic contributions of small tourist enterprises. The idea is to create an inclusive pattern that would allow locals to earn a share of the profit from the large number of tourists visiting Goa and keep tabs on the ‘quality’ of tourists.
The report proposes linking up hotels and other sectors such as agriculture, poultry farming, dairy industry and bakeries. “Like Kerala, we must use the luxury tax to support local industries. This will help both five-star resorts and traditional businessmen”, said CERT’S Anibel Comello.
The report demands the creation of better infrastructure at village levels. Challenging the Centre’s plan to create Special Tourism Zones for developing golf courses and casinos, the report stresses the need to promote Goan culture, customs and tradition and local cuisine.
“Goa needs to create better facilities to get better tourists. The quality of people visiting us will only improve if the quality of the product improves,” said CERT consultant Ranjan. He strongly advocates creating a “family environment” to dissuade lone tourists who are often accused of child abuse.
With the report tabled during the ongoing monsoon session of the assembly, both CERT and FOSAM hope to initiate a dialogue for a long-term sustainable tourism industry. “What we want is to create better facilities so that it becomes difficult for a low-budget tourist to come here. This way, we can attract more families here,” said FOSAM president Serafino Cota.
DUES UNPAID, ATTACH PLANE: HC
Court orders the aircraft to be attached after pilot claims he was not paid salary of Rs 13 lakh
Not paying dues to its employee proved a bit costly to a private airline company. On Monday, a division bench of the Bombay High Court directed the Mumbai suburban collector to attach a Beech King Air C-90A aircraft of Skyline NEPC Airlines Ltd.
The order came on a petition filed by captain Kersy Driver, 71, a former pilot of Skyline Airlines who alleged that he was not paid his salary and other emoluments for three months in 1997.
Driver had moved the HC after the company failed to pay him his wages for February, March and May 1997 and encashment of leave — a sum aggregating Rs. 13.13 lakh after tax deduction.
Driver has sought Rs 30 lakh from the company (Rs 25.72 lakh being the total wages payable with 12 per cent interest for a period of about 12 years plus Rs. 5.59 lakh, which is the tax deducted from his income by the company).
The Supreme Court had in August 2003 directed the directors of the company to deposit Rs 13,13,748 with the HC.
Earlier, the HC had directed the collector to recover the said amount with 12 per cent interest from the company. The SC, while directing the directors to deposit the sum in the HC, had stayed the recovery process.
The division bench of justice J N Patel and justice K K Tated on Monday came down heavily on the airline company.
“Enough indulgence was given to the respondents (the company and its three directors), but it seems that they do not want to discharge their liabilities,” observed the bench.
The court has now directed the suburban collector to impound and attach the eightseater aircraft, wherever it may be in India. The court directed the collector to implement the order with the help of the Airport Authority of India (AAI), Director General of Civil Aviation (DGCA) and Mumbai International Authorities Limited (MIAL). The court also directed the collector to file a report regarding the properties of the company in two weeks time.
CASE BACKGROUND
Driver, according to his application, was appointed Damania Airways as a pilot in May 1995. Damania Airways was taken over by Skyline NEPC Ltd. The employees of Damania Airways, including Driver, were treated in continuous service of Skyline NEPC Ltd.
According to his petition, Skyline NEPC was liable to pay him wages for February, March and May 1997. He had earlier approached a labour court in Chennai in 2002. The labour court ruled in his favour, directing the local collector to issue a certificate of recovery and the company to pay Driver.
“The collector of Chennai and Mumbai are not enforcing the recovery certificate since 2002 and the petitioner is suffering,” argued Driver’s counsel S C Naidu.
Driver had made the company as well as its three directors (Raviprakash Khemka, Raj Kumar Khemka and Thirupathi Kumar Khemka), collector of Chennai and collector (Mumbai Suburban) as respondents.
The company authorities were unavailable for comment.
Not paying dues to its employee proved a bit costly to a private airline company. On Monday, a division bench of the Bombay High Court directed the Mumbai suburban collector to attach a Beech King Air C-90A aircraft of Skyline NEPC Airlines Ltd.
The order came on a petition filed by captain Kersy Driver, 71, a former pilot of Skyline Airlines who alleged that he was not paid his salary and other emoluments for three months in 1997. Driver had moved the HC after the company failed to pay him his wages for February, March and May 1997 and encashment of leave — a sum aggregating Rs. 13.13 lakh after tax deduction.
Driver has sought Rs 30 lakh from the company (Rs 25.72 lakh being the total wages payable with 12 per cent interest for a period of about 12 years plus Rs. 5.59 lakh, which is the tax deducted from his income by the company).
The Supreme Court had in August 2003 directed the directors of the company to deposit Rs 13,13,748 with the HC.
Earlier, the HC had directed the collector to recover the said amount with 12 per cent interest from the company. The SC, while directing the directors to deposit the sum in the HC, had stayed the recovery process.
The division bench of justice J N Patel and justice K K Tated on Monday came down heavily on the airline company.
“Enough indulgence was given to the respondents (the company and its three directors), but it seems that they do not want to discharge their liabilities,” observed the bench.
The court has now directed the suburban collector to impound and attach the eightseater aircraft, wherever it may be in India. The court directed the collector to implement the order with the help of the Airport Authority of India (AAI), Director General of Civil Aviation (DGCA) and Mumbai International Authorities Limited (MIAL). The court also directed the collector to file a report regarding the properties of the company in two weeks time.
CASE BACKGROUND
Driver, according to his application, was appointed Damania Airways as a pilot in May 1995. Damania Airways was taken over by Skyline NEPC Ltd. The employees of Damania Airways, including Driver, were treated in continuous service of Skyline NEPC Ltd.
According to his petition, Skyline NEPC was liable to pay him wages for February, March and May 1997. He had earlier approached a labour court in Chennai in 2002. The labour court ruled in his favour, directing the local collector to issue a certificate of recovery and the company to pay Driver.
“The collector of Chennai and Mumbai are not enforcing the recovery certificate since 2002 and the petitioner is suffering,” argued Driver’s counsel S C Naidu.
Driver had made the company as well as its three directors (Raviprakash Khemka, Raj Kumar Khemka and Thirupathi Kumar Khemka), collector of Chennai and collector (Mumbai Suburban) as respondents.
The company authorities were unavailable for comment.
Video conferencing for outstation RTI applicants
The move will save travel cost and time for those based outside the city
Right To Information applicants in the state have reason to cheer. From next month the state information commission will use video conferencing facilities to hear RTI appeals filed by those based outside Mumbai.
The state’s chief information commissioner, Suresh Joshi, confirmed the move and said it will result in saving travel cost and time. “Both the applicant and information officer will not have to leave their city. In Mumbai we can use the video conferencing facilities in Mantralaya or the new administrative building. The applicant need not travel to Mumbai, but will have to visit his area’s divisional commissioners’ office which has video conferencing facilities. As usual, we will issue notices of the hearing to all parties,” Joshi said.
The Central Information Commission, which is based in New Delhi and is the appellate authority for issues relating to the central government, hears cases using video conferencing. Joshi said he tried introducing video conferencing about two 1months ago, but came across some problem in the system. “I have spoken to the IT department regarding the issue,” he added.
The information commission, which was constituted three years ago, has commissioners in Pune, Nagpur and Aurangabad, besides Mumbai. Till date, 27,000 appeals have been filed with the commission. Of these, about 15,000 are pending, the most being 3,500 applications from Pune.
Joshi has also proposed a second post of an information commissioner in Pune. However, Joshi has so far been unable to get the posts of information commissioners appointed in Nashik and Amravati.
The government sanctioned these two posts a year and half ago, but has not even selected candidates for the post. The government had shortlisted V N Deshmukh, former chairperson of MPSC, for the post in Amravati, but he was reluctant to accept. There was also a move to depute the information commissioner from Nagpur to Nashik but that too got shelved.
RTI activist Shailesh Gandhi welcomed the move to use video conferencing for appeals, but cautioned that it was a peripheral issue. “The real issue before the state information commission is to clear its pendency and it should focus on it rather than sidetracking it,” he said.
ANEESH PHADNIS
Right To Information applicants in the state have reason to cheer. From next month the state information commission will use video conferencing facilities to hear RTI appeals filed by those based outside Mumbai.
The state’s chief information commissioner, Suresh Joshi, confirmed the move and said it will result in saving travel cost and time. “Both the applicant and information officer will not have to leave their city. In Mumbai we can use the video conferencing facilities in Mantralaya or the new administrative building. The applicant need not travel to Mumbai, but will have to visit his area’s divisional commissioners’ office which has video conferencing facilities. As usual, we will issue notices of the hearing to all parties,” Joshi said. The Central Information Commission, which is based in New Delhi and is the appellate authority for issues relating to the central government, hears cases using video conferencing. Joshi said he tried introducing video conferencing about two 1months ago, but came across some problem in the system. “I have spoken to the IT department regarding the issue,” he added.
The information commission, which was constituted three years ago, has commissioners in Pune, Nagpur and Aurangabad, besides Mumbai. Till date, 27,000 appeals have been filed with the commission. Of these, about 15,000 are pending, the most being 3,500 applications from Pune.
Joshi has also proposed a second post of an information commissioner in Pune. However, Joshi has so far been unable to get the posts of information commissioners appointed in Nashik and Amravati.
The government sanctioned these two posts a year and half ago, but has not even selected candidates for the post. The government had shortlisted V N Deshmukh, former chairperson of MPSC, for the post in Amravati, but he was reluctant to accept. There was also a move to depute the information commissioner from Nagpur to Nashik but that too got shelved.
RTI activist Shailesh Gandhi welcomed the move to use video conferencing for appeals, but cautioned that it was a peripheral issue. “The real issue before the state information commission is to clear its pendency and it should focus on it rather than sidetracking it,” he said.
ANEESH PHADNIS
HC RESOLVES ‘LOVE-CHILD’S’ PASSPORT WOES
Passport office had refused to give her the document after she refused to fill in her biological father’s name
A young college-girl's dream of pursuing further education in the US was salvaged after the High Court made an exception and instructed the passport office to issue her the document despite the fact that she had refused to fill in the mandatory requirement of father's name.
The 19-year-old student (identity being withheld on request) of a prestigious suburban college was born to her mother out of wedlock and has had no communication with her biological father who had deserted them. However, her mother did get married to a businessman when this girl was just over 15.
But as per the Hindu Adoption and Maintenance Act a child can be adopted by a foster-father only till the age of 15. Unable to use neither her real father nor her step-father's name the girl never got a passport.
But when it came to further studies for this student of mass-media, she had no option but to petition the court. On Monday, while hearing her petition the division bench of Justices P B Majmudar and Amjad Sayed directed the regional passport authority to consider her case under special circumstances.
"Society is changing and children now prefer to use mother's name instead of father's name as their middle name," directed the Bombay High Court. "Consider the girl's statement on affidavit that she has accepted her mother's husband as her father and start the procedure of allotting her a passport," the bench observed. The girl had accepted her mother's husband as her father and stays with her parents and her half brother in the western suburbs, said the petition.
"On my father's suggestion, I changed my middle name, as we had accepted the relation mutually and he considered me his legal child. The change of name came to be effected by a gazette dated January 18, 2007," says the petition filed by the girl.
"Such a case should be considered a special circumstance," observed Justice Majmudar.
The girl had applied for a passport in 2007 as she wanted to pursue higher studies abroad. "But, surprisingly my application was not accepted by the passport office as they wanted an adoption deed from my biological father or my mother in favour of her husband. As I became a major in December, 2006, the adoption deed is not possible," says the petition.
However, the passport authorities did not accept the reasons given by her and denied her a passport. "Her step-father is willing to spend money on her higher studies," argued Aparna Vhatkar, the girl's lawyer.
The HC has now observed that considering the circumstances under which the application for passport has been made, the authorities should consider it as a special case, and has directed the relevant authorities to get the process going within two weeks.
HETAL VYAS
A young college-girl's dream of pursuing further education in the US was salvaged after the High Court made an exception and instructed the passport office to issue her the document despite the fact that she had refused to fill in the mandatory requirement of father's name. The 19-year-old student (identity being withheld on request) of a prestigious suburban college was born to her mother out of wedlock and has had no communication with her biological father who had deserted them. However, her mother did get married to a businessman when this girl was just over 15.
But as per the Hindu Adoption and Maintenance Act a child can be adopted by a foster-father only till the age of 15. Unable to use neither her real father nor her step-father's name the girl never got a passport.
But when it came to further studies for this student of mass-media, she had no option but to petition the court. On Monday, while hearing her petition the division bench of Justices P B Majmudar and Amjad Sayed directed the regional passport authority to consider her case under special circumstances.
"Society is changing and children now prefer to use mother's name instead of father's name as their middle name," directed the Bombay High Court. "Consider the girl's statement on affidavit that she has accepted her mother's husband as her father and start the procedure of allotting her a passport," the bench observed. The girl had accepted her mother's husband as her father and stays with her parents and her half brother in the western suburbs, said the petition.
"On my father's suggestion, I changed my middle name, as we had accepted the relation mutually and he considered me his legal child. The change of name came to be effected by a gazette dated January 18, 2007," says the petition filed by the girl.
"Such a case should be considered a special circumstance," observed Justice Majmudar.
The girl had applied for a passport in 2007 as she wanted to pursue higher studies abroad. "But, surprisingly my application was not accepted by the passport office as they wanted an adoption deed from my biological father or my mother in favour of her husband. As I became a major in December, 2006, the adoption deed is not possible," says the petition.
However, the passport authorities did not accept the reasons given by her and denied her a passport. "Her step-father is willing to spend money on her higher studies," argued Aparna Vhatkar, the girl's lawyer.
The HC has now observed that considering the circumstances under which the application for passport has been made, the authorities should consider it as a special case, and has directed the relevant authorities to get the process going within two weeks.
HETAL VYAS
Friday, August 22, 2008
Do certain communities face bias while BUYING FLATS IN MUMBAI?
The Below mentioned times article is away from real life situations in Mumbai.
Why don't the reporters pose themself has muslims and do a reality check. They will know the tuth. Builders and Real estate dealers do not say they are money minded people the real problem is the Society.
Do certain communities face bias while BUYING FLATS IN MUMBAI?
Actor Shabana Azmi has sparked off a huge controversy by alleging that Muslims cannot buy flats in Mumbai and that the community was discriminated against. TOI decided to do a reality check. Its reporters posed as Muslim flat-buyers—Mohammed Hanif and Abdul Rashid—and called up several builders’ offices and real estate agents at random, inquiring about the availability of flats. The results were by and large contrary to what Azmi alleged. Here’s what we did:
We dialled K Raheja builder (26005269) and inquired about his project on Link Road, behind D Mart, in Malad (West). An executive said booking was open and possession would be available by Diwali. Asked if they had any objection to selling flats to Muslims he replied: “Absolutely no problem sir. We don’t bother about the religion of buyers. Anyone willing to pay our price is welcome.’’
RNA builders (28975659) have a project at NG Park on Shiv Vallabh Road, Rawalpada, Borivli (West). A staffer said an 850 sq ft (built-up area) flat can be had at Rs 4,800 per sq ft. He categorically stated that being a Muslim did not matter to his company. “You can come anytime to have a look at the flats,’’ he added cheerfully.
A staffer at Kalpataru Builders (28842600) said twoand-a-half BHK flats can be booked at their project in Kandivli (E) and possession will be given in May 2009. He reassured that religion was no consideration for the sale. “We have no issue selling flats to Muslims,’’ he emphasised.
At Nahar Builders’ office (28470201) an assistant identified himself as Sureshbhai and initiated a smooth sales talk about their project at Chandivli Farm Road near Powai. He said flats measuring 1040 sq ft were available for at Rs 10,000 per sq ft. He was surprised when we asked if he had any reservations about selling a flat to a Muslim. “Why there should be any problem?’’ he asked innocently. “You are most welcome,’’ he added for good measure.
Real estate agent Sushil Khemchand (9820800728), when contacted, said a posh flat was available on outright purchase for Rs 2.5 crore off Turner Road in Bandra (West). Measuring around 1100 sq feet, this flat—situated in an eightyear-old building—was available to people from all religions, he stated. He assured that that the housing society would have no objection to Muslims staying there.
Estate agent Rajubhai Dayalani (9322571471) has a few flats for sale at Mayuresh Shristi, L B S Marg, in Bhandup (West). He said it was available for anywhere between Rs 44 lakh and Rs 56 lakh. Rajubhai said the flats were open for people from all communities and there was no discrimination. “Only the price mattered. Please come on Sunday to have a look,’’ he said enthusiastically.
Lokhandwala Construction (32933197) project near Worli Naka. It is ready for possession, and falls under the Slum Rehabilitation Scheme. Shailesh Bhai, who is promoting the project, told TOI that there was no problem being a Muslim and one could easily purchase an apartment here. The builder, Moiz Lokhandwala, was a Muslim who did not care about the religion of the buyers.
Bhoomi builders (28617227) have a project at Bhoomi Valley, near Thakur Public School, in Kandivli. They too have no objections to Muslims buying properties in their projects.
A few others, however, had some reservations.
Windsor builders (21714617) in Thane have a project, whose possession date is December 2008. When asked whether a Muslim can buy property there, a staffer replied : “Sir, I am confused. I am not sure. I will have to check with my boss .’’
Kabra Builders (28783818) have a project at Vidya Niketan Marg, off M G Road in Goregaon (West). It is a redevelopment project and will have 2 BHK flats for possession by November 2008. Each flat measures 925 sq ft built-up area and will have proper amenities. However, Deepakbhai, who spoke to us, said that he was not sure about Muslims being accommodated here. “As it is a redeveloped property, I will have to take a no-objection from the society,’’ he said and promised to get back to us soon.
Apologize for Muslim bias slur, Shatru tells Shabana
Shimla: Actor-turned-politician Shatrugan Sinha crossed swords with Shabana Azmi over her controversial remarks that Muslims in the country are “victims of discrimination’’, saying it was “untrue and bad in taste’’ and wanted her to withdraw it.
Criticizing Azmi for reportedly saying that being a Muslim she could not buy a flat in Mumbai, Sinha, who is also a BJP leader, said, “I am utterly surprised at the statement of my Bollywood friend Shabana Azmi... It is false and bad in taste and she must withdraw it and apologize to the nation for the unsavoury assertion.’’
Sinha said Shabana had hurt the sentiments of millions of her fans and colleagues with the remarks. On her allegation of discrimination against Muslims, Sinha said she is perhaps forgetting that cine buffs had shown their affection to her. The country rolled out the red carpet not only for Azmi but also to actor Dilip Kumar alias Yusuf Khan, Waheeda Rehman and the recent ones like Shah Rukh Khan and Aamir Khan, he said
S Balakrishnan & Somit Sen | TNN
Why don't the reporters pose themself has muslims and do a reality check. They will know the tuth. Builders and Real estate dealers do not say they are money minded people the real problem is the Society.
Do certain communities face bias while BUYING FLATS IN MUMBAI?
Actor Shabana Azmi has sparked off a huge controversy by alleging that Muslims cannot buy flats in Mumbai and that the community was discriminated against. TOI decided to do a reality check. Its reporters posed as Muslim flat-buyers—Mohammed Hanif and Abdul Rashid—and called up several builders’ offices and real estate agents at random, inquiring about the availability of flats. The results were by and large contrary to what Azmi alleged. Here’s what we did:
We dialled K Raheja builder (26005269) and inquired about his project on Link Road, behind D Mart, in Malad (West). An executive said booking was open and possession would be available by Diwali. Asked if they had any objection to selling flats to Muslims he replied: “Absolutely no problem sir. We don’t bother about the religion of buyers. Anyone willing to pay our price is welcome.’’
RNA builders (28975659) have a project at NG Park on Shiv Vallabh Road, Rawalpada, Borivli (West). A staffer said an 850 sq ft (built-up area) flat can be had at Rs 4,800 per sq ft. He categorically stated that being a Muslim did not matter to his company. “You can come anytime to have a look at the flats,’’ he added cheerfully.
A staffer at Kalpataru Builders (28842600) said twoand-a-half BHK flats can be booked at their project in Kandivli (E) and possession will be given in May 2009. He reassured that religion was no consideration for the sale. “We have no issue selling flats to Muslims,’’ he emphasised.
At Nahar Builders’ office (28470201) an assistant identified himself as Sureshbhai and initiated a smooth sales talk about their project at Chandivli Farm Road near Powai. He said flats measuring 1040 sq ft were available for at Rs 10,000 per sq ft. He was surprised when we asked if he had any reservations about selling a flat to a Muslim. “Why there should be any problem?’’ he asked innocently. “You are most welcome,’’ he added for good measure.
Real estate agent Sushil Khemchand (9820800728), when contacted, said a posh flat was available on outright purchase for Rs 2.5 crore off Turner Road in Bandra (West). Measuring around 1100 sq feet, this flat—situated in an eightyear-old building—was available to people from all religions, he stated. He assured that that the housing society would have no objection to Muslims staying there.
Estate agent Rajubhai Dayalani (9322571471) has a few flats for sale at Mayuresh Shristi, L B S Marg, in Bhandup (West). He said it was available for anywhere between Rs 44 lakh and Rs 56 lakh. Rajubhai said the flats were open for people from all communities and there was no discrimination. “Only the price mattered. Please come on Sunday to have a look,’’ he said enthusiastically.
Lokhandwala Construction (32933197) project near Worli Naka. It is ready for possession, and falls under the Slum Rehabilitation Scheme. Shailesh Bhai, who is promoting the project, told TOI that there was no problem being a Muslim and one could easily purchase an apartment here. The builder, Moiz Lokhandwala, was a Muslim who did not care about the religion of the buyers.
Bhoomi builders (28617227) have a project at Bhoomi Valley, near Thakur Public School, in Kandivli. They too have no objections to Muslims buying properties in their projects.
A few others, however, had some reservations.
Windsor builders (21714617) in Thane have a project, whose possession date is December 2008. When asked whether a Muslim can buy property there, a staffer replied : “Sir, I am confused. I am not sure. I will have to check with my boss .’’
Kabra Builders (28783818) have a project at Vidya Niketan Marg, off M G Road in Goregaon (West). It is a redevelopment project and will have 2 BHK flats for possession by November 2008. Each flat measures 925 sq ft built-up area and will have proper amenities. However, Deepakbhai, who spoke to us, said that he was not sure about Muslims being accommodated here. “As it is a redeveloped property, I will have to take a no-objection from the society,’’ he said and promised to get back to us soon.
Apologize for Muslim bias slur, Shatru tells Shabana
Shimla: Actor-turned-politician Shatrugan Sinha crossed swords with Shabana Azmi over her controversial remarks that Muslims in the country are “victims of discrimination’’, saying it was “untrue and bad in taste’’ and wanted her to withdraw it.
Criticizing Azmi for reportedly saying that being a Muslim she could not buy a flat in Mumbai, Sinha, who is also a BJP leader, said, “I am utterly surprised at the statement of my Bollywood friend Shabana Azmi... It is false and bad in taste and she must withdraw it and apologize to the nation for the unsavoury assertion.’’
Sinha said Shabana had hurt the sentiments of millions of her fans and colleagues with the remarks. On her allegation of discrimination against Muslims, Sinha said she is perhaps forgetting that cine buffs had shown their affection to her. The country rolled out the red carpet not only for Azmi but also to actor Dilip Kumar alias Yusuf Khan, Waheeda Rehman and the recent ones like Shah Rukh Khan and Aamir Khan, he said
S Balakrishnan & Somit Sen | TNN
Thursday, August 21, 2008
If you want to live longer Run like the wind
The cheapest way to live longer is to run, reveals a surprising study. To get started, all you need is a pair of track pants, a T-shirt and good running shoes. 
But before you gear up to sweat it out, here is everything you need to know about running.
You are hardly going to believe this, but a recent study indicates that middle-aged members of a runners' club were half as likely to die over a 20-year period than those who did not run.
Any form of intense physical activity could do the trick, but running is the most fun. It reduces, not only the risk of heart disease, but also cancer and neurological diseases such as Alzheimer's, researchers at Stanford University have said. So, slip on your running shoes and let's get started.
Actor Mandira Bedi jogs every morning from her Carter Road apartment to Taj Lands end, and back
Beginning a running programme may improve your entire life as it strengthens your cardiovascular system and boosts your self-esteem, while also allowing you to appreciate the outdoors.
A track is the best option
If you do not have access to a track, asphalt is better than concrete or dirt. The silt along the roadside is even better.
Warm-ups and cool-downs are a must
Warming up and cooling down, before and after a run, is important. Do this by walk-jogging or jogging at a slower pace.
There are rules to runningA drink goes a long way
Drink adequately for up to two hours before you start to run. Don't ever try to gulp water while running, or you might end up feeling nauseous. Drink as soon as you stop running, but even after your initial thirst is quenched, you still need to keep drinking so that you don't risk dehydration.
Food is fuel
Running on an empty stomach may cause you to run out of energy. Eat a light snack 1 to 1½ hours before running. Choose something high in carbohydrates and low in fat and select complex carbohydrates like whole grain cereals, pulses and beans. Eating complex carbohydrates helps keep your blood sugar stable. A bowl of cereal with a cup of milk and a banana is good.
After-run precautions
You need to replenish your energy as quickly as possible. Studies have shown that muscles are most receptive to rebuilding glycogen (stored glucose) within the first 30 minutes after exercise. If you eat soon after your run, you can minimise muscle stiffness and soreness. A fruit smoothie with egg whites and whole wheat bread is ideal.
Matt Dillon, Actor
The actor urges men who are trying to quit smoking to take up running as a hobby. He started jogging 10 years ago when he quit smoking, and insists the healthy lifestyle made him turn his back on cigarettes for good.
Matthew McConaughey, Actor
He usually goes for a jog in the mornings and is often spotted along a beach front or a mountainside on Sunday mornings.
But before you gear up to sweat it out, here is everything you need to know about running.You are hardly going to believe this, but a recent study indicates that middle-aged members of a runners' club were half as likely to die over a 20-year period than those who did not run.
Any form of intense physical activity could do the trick, but running is the most fun. It reduces, not only the risk of heart disease, but also cancer and neurological diseases such as Alzheimer's, researchers at Stanford University have said. So, slip on your running shoes and let's get started.
Actor Mandira Bedi jogs every morning from her Carter Road apartment to Taj Lands end, and back
Beginning a running programme may improve your entire life as it strengthens your cardiovascular system and boosts your self-esteem, while also allowing you to appreciate the outdoors.
A track is the best option
If you do not have access to a track, asphalt is better than concrete or dirt. The silt along the roadside is even better.
Warm-ups and cool-downs are a must
Warming up and cooling down, before and after a run, is important. Do this by walk-jogging or jogging at a slower pace.
There are rules to runningA drink goes a long wayDrink adequately for up to two hours before you start to run. Don't ever try to gulp water while running, or you might end up feeling nauseous. Drink as soon as you stop running, but even after your initial thirst is quenched, you still need to keep drinking so that you don't risk dehydration.
Food is fuel
Running on an empty stomach may cause you to run out of energy. Eat a light snack 1 to 1½ hours before running. Choose something high in carbohydrates and low in fat and select complex carbohydrates like whole grain cereals, pulses and beans. Eating complex carbohydrates helps keep your blood sugar stable. A bowl of cereal with a cup of milk and a banana is good.
After-run precautions
You need to replenish your energy as quickly as possible. Studies have shown that muscles are most receptive to rebuilding glycogen (stored glucose) within the first 30 minutes after exercise. If you eat soon after your run, you can minimise muscle stiffness and soreness. A fruit smoothie with egg whites and whole wheat bread is ideal.
Matt Dillon, Actor
The actor urges men who are trying to quit smoking to take up running as a hobby. He started jogging 10 years ago when he quit smoking, and insists the healthy lifestyle made him turn his back on cigarettes for good.
Matthew McConaughey, Actor
He usually goes for a jog in the mornings and is often spotted along a beach front or a mountainside on Sunday mornings.
Wednesday, August 20, 2008
The liveliness of a long-distance runner
CASSANDRA cried when James Fries began his research on the effect of exercise on the ageing process at Stanford University School of Medicine in the 1980s. Dr Fries believed that a lifetime of regular exercise, such as running, would extend the runner’s life while enhancing vitality and improving its quality at the same time.
However, many scientists weren’t so sure. Some feared that as compared to the couch potatoes, runners were more likely to suffer from osteoarthritis or even knee damage severe enough to merit total knee replacement! To check out the hypothesis Dr Fries recruited subjects over 50. Half of them ran regularly, about four hours a week. The other half just sat back and watched others run.
Twenty years later, the running time has trickled down to barely 76 minutes a week. But its manifold health benefits have surprised even the research team — only 15% of the runners had died, from any cause, compared to 34% of the group of non-runners. The rate of death due to cardiovascular disease was much lower too; and the running group also had fewer deaths due to cancer, infection, and neurological disease, among others.
Although the subjects were all in their 70s and 80s what had proved to be most remarkable was the dramatic delay of decline among the runners. The nonrunners got hit by initial disability a full 16 years earlier. What was equally dramatic was the manner in the gap between the healths of the runners versus the ill-health of the non-runners kept widening as their age advanced inexorably.
Dr Fries’s findings are of a piece with what traditional systems like Yoga and Tai-chi have always maintained — that age is absolutely no bar for an abundantly productive life as long as it’s backed by rigorous discipline (kriya or abhyasa). Indeed, as Oliver Wendell Holms observed, “Men do not quit playing because they grow old; they grow old because they quit playing.” Of course, the outcome depends on the sort of games people play.
In this context, the irrepressible John Mortimer once quipped that there was no pleasure worth foregoing just for an extra three years in the geriatric ward! In the end it does boil down to a matter of making choices (and paying for them). Only a quarter of what determines the length of our lives comes from genes. The rest comes from nurture, which including choices we make about how we treat our bodies through life. Reap as you sow.
VITHAL C NADKARNI
However, many scientists weren’t so sure. Some feared that as compared to the couch potatoes, runners were more likely to suffer from osteoarthritis or even knee damage severe enough to merit total knee replacement! To check out the hypothesis Dr Fries recruited subjects over 50. Half of them ran regularly, about four hours a week. The other half just sat back and watched others run.
Twenty years later, the running time has trickled down to barely 76 minutes a week. But its manifold health benefits have surprised even the research team — only 15% of the runners had died, from any cause, compared to 34% of the group of non-runners. The rate of death due to cardiovascular disease was much lower too; and the running group also had fewer deaths due to cancer, infection, and neurological disease, among others.
Although the subjects were all in their 70s and 80s what had proved to be most remarkable was the dramatic delay of decline among the runners. The nonrunners got hit by initial disability a full 16 years earlier. What was equally dramatic was the manner in the gap between the healths of the runners versus the ill-health of the non-runners kept widening as their age advanced inexorably.
Dr Fries’s findings are of a piece with what traditional systems like Yoga and Tai-chi have always maintained — that age is absolutely no bar for an abundantly productive life as long as it’s backed by rigorous discipline (kriya or abhyasa). Indeed, as Oliver Wendell Holms observed, “Men do not quit playing because they grow old; they grow old because they quit playing.” Of course, the outcome depends on the sort of games people play.
In this context, the irrepressible John Mortimer once quipped that there was no pleasure worth foregoing just for an extra three years in the geriatric ward! In the end it does boil down to a matter of making choices (and paying for them). Only a quarter of what determines the length of our lives comes from genes. The rest comes from nurture, which including choices we make about how we treat our bodies through life. Reap as you sow.
VITHAL C NADKARNI
Tuesday, August 19, 2008
10 tax-smart tips for salary earners
As in Alice's Wonderland, so too in the labyrinth-land of income tax, things are often not what they appear to be. 'Yes' may not always mean yes, and 'no' may not necessarily mean what we generally take it to mean.
So, it pays to be tax-smart; you can get to keep more of your hard-earned money for yourself rather than having to cough it up to the taxman . . .
1. Exemption on soft furnishing expenses Sec. 10(14) [of the Income Tax Act] offers exemption for expenses (and not allowances) incurred wholly, necessarily and exclusively in the performance of the duties. There are two distinct arguments to render soft-furnishing non-taxable.
The first one is to claim that the employee needs to entertain guests at his residence for official purpose. The second one is that the expense is incurred to protect the furniture belonging to the office at the residence of the employee from deterioration.
2. Notice period salary equivalent paid to employer is not tax deductible
Most employment conditions require an employee who desires to change his job, to give his employer a notice of his intentions and serve him for certain pre-fixed months.
In case an employee desires to leave the services immediately, or before the notice period, he should pay the employer an amount equivalent to the salary he would have earned during the notice period or shortfall thereof. Is this amount deductible from the salary income of the employee?
What the employee is paying to the employer cannot come under the head 'Salaries' since he is not the employer's employer. This amount represents application of his income and therefore, it is not deductible. He has merely applied this income to discharge a liability and therefore, it is not tax deductible.
This is the view generally accepted by all accountants and the income tax department.
3. Employment after retirement can be less taxing
These days many employees are re-employed by their ex-employers on retainership or contractual basis after their retirement. The fact that the person happens also to be the ex-employee is immaterial and inconsequential.
Such a person enjoys better concessions than a normal employee. He can claim deductions for expenses incurred for earning his consultancy fee. Moreover, the TDS applied by the principal would be only 10% of the fee paid.
4. How gardener and helper can be tax-free perks
Here, two points are of great interest: � Circular 122, dated 19.10.73, clarified that if the employer employs a gardener for a building belonging to the employer, it would not be treated as a perk. This principle continues to be applicable even now with the possibility of it being extrapolated to other servants. � This is more interesting. A helper engaged for the performance of the duties of an office or employment of profit; is not considered as a perk under Rule 2BB, read with Sec. 10(14). Many employees, particularly at the top level, and especially in view of communication handshakes available through e-mail, do not necessarily work only in the office. Some part of the work is done at residence. We will go to the extent of stating that the employee can directly engage the services of a helper and claim reimbursement from the employer without it being considered as a perk.
5. Tax nuances when a house / flat is given on lease to employer
Top management category employees usually get rent-free residential house as a perk. Sometimes, the flat belongs to the employee, taken on lease by the company from the employee and the employee is allowed to reside in it.
In other words, the landlord of the residential flat used by the employee is the employee himself and simultaneously he is also a tenant.
Under such a situation, the employee will have to pay tax on the lease rent received as income from house property and also as perk. Is this double taxation? Definitely not. The employee is enjoying double benefit and will have to pay tax on each benefit separately.
Is this flat self-occupied or let-out? Of course it is let-out. No one can pay rent to himself.
The Sec. 80C deduction is possible both on self-occupied and let out flats. The interest is deductible in full since the flat is let out. If the employee pays some rent to his employer, this rent cannot be deducted from the lease rent for tax purpose. This rent will be taken cognisance of while computing the perk value.
Before the revision in perk values, many of the employees used to give their flats or the flats of their wives on lease to the employers and benefit immensely. Now, after the large-scale amendments to perk values, the advantage has been watered down.
Nevertheless, normally the lessor takes an interest-free deposit from the lessee. This is a deposit and not a loan. Consequently, it does not have any perk value. We do not think the Department will question the size of the deposit in such cases.
6. Interest on deposit for a leased flat
The ITO cannot treat the difference between the market rate of interest and the actual interest paid by the landlord to his tenant on deposits placed by the tenant in custody of the landlord, as further rent received. [CIT v Satya Co. Ltd., (1994) 75Taxman193 (Cal.)].
7. LTA and Relatives
As per the Rules, you can claim the LTA benefit only twice during the block of 4 years. For this purpose
You should be on leave.
You should travel.
During such travel you may have your family with you. Family includes spouse, children as well as dependent parents, brothers and sisters. In respect of children born on or after 1.10.98, the exemption will be restricted only to two surviving children unless the birth after one child has resulted in multiple births.
The expense incurred by you is exempt up to the LTA received.
Obviously, if your wife and other family members travel, without you accompanying them, no LTA can be claimed.
LTA and working couple
Take the case of a working couple. Both the husband and wife can claim the exemption on LTA from their employers and claim benefit for 4 journeys in one block. There is no need for them to take the precaution of not travelling twice during the same year.
Moreover, they can take the same family members or different ones as long as they stick to the definition of the members for this purpose.
8. Tax-free perks of ex-employees
Aditya Cement Staff Club v Union of India & Others is an interesting case which states that where an employee has resigned and is allowed to occupy company quarters free of rent or at concessional rent, it is not to be taken as perk value, unless it is a contractual obligation to that effect according to the terms of employment.
In order that any benefit, amenity or payment may be termed as perquisite, it must be in pursuance of a right conferred on or option given to the employee to receive such benefit or advantage from his employer.
Unless such advantage or benefit flows from the status of the person working as an employee it cannot be termed as perquisite. The employee must have a vested right to claim advantage or benefit whether in cash or in kind, in order to fall within the purview of perquisite as part of salaries taxable under the ITA.
9. Provident Fund not encashed
Interest on Registered Provident Fund (RPF) of an employee is tax-free. Does it still remain tax-free after the employee retires and does not claim his Provident Fund for say 2 to 3 years?
If one goes strictly according to the drafted provisions, it appears that this interest is tax-free since the amount becomes payable only when the ex-employee asks for it. However, we are told that many ITOs take the stand that the balance in Co-PF gets the colour and character of company fixed deposits when the employee retires. This stand is challengeable.
10. When PF becomes taxable
If an employee leaves the service before completion of 5 years, Rule 10 of Part A of Schedule IV, requires the trustees of a Recognised PF to deduct tax when the accumulated balance due to an employee is paid. This payment is to be treated as income chargeable under the head 'Salaries.'
Rule 9 puts a different responsibility on the Assessing Officer. He shall calculate the total of the various sums of tax which would have been payable by the employee in the respect of the total income for each of the related years to arrive at the amount by which such total exceeds the total of taxes paid by the employee for such years.
This excess amount is payable by the employee in addition to tax on the income during the year in which the accumulated balance of PF becomes payable.
According to Rule 8 of Part A of the Fourth Schedule, this requirement of 5 years shall not be applicable where the service has been terminated by reason of the employee's ill-health, or by the contraction or discontinuance of the employer's business or other causes beyond the control of the employee.
All the same, it is not clear if the employer's contribution becomes taxable if the employee has to retire on attaining superannuation age after a continuous service of less than 5 years. It is our considered opinion that since the retirement is beyond the control of the employee, the amount does not become taxable.
It is erroneous to feel that the employee's contribution to PF is not taxed during the year of contribution. It is fully taxed in any case. All he gets is the deduction which stands withdrawn if the employee withdraws the PF before 5 years. To tax the contribution once again in the year of withdrawal is tantamount to double taxation.
In the case of unrecognised provident fund, there is a triple taxation if the employee withdraws within 5 years. Not only he is not allowed any deduction on his own contribution but also the employer's contribution is taxed during the year of contribution and also during the year of withdrawal.
[Excerpt from the book, Taxpayer to Taxsaver by A. N. Shanbhag and Sandeep Shanbhag, published by Vision Books.]
So, it pays to be tax-smart; you can get to keep more of your hard-earned money for yourself rather than having to cough it up to the taxman . . .
1. Exemption on soft furnishing expenses Sec. 10(14) [of the Income Tax Act] offers exemption for expenses (and not allowances) incurred wholly, necessarily and exclusively in the performance of the duties. There are two distinct arguments to render soft-furnishing non-taxable.
The first one is to claim that the employee needs to entertain guests at his residence for official purpose. The second one is that the expense is incurred to protect the furniture belonging to the office at the residence of the employee from deterioration.
2. Notice period salary equivalent paid to employer is not tax deductible
Most employment conditions require an employee who desires to change his job, to give his employer a notice of his intentions and serve him for certain pre-fixed months.
In case an employee desires to leave the services immediately, or before the notice period, he should pay the employer an amount equivalent to the salary he would have earned during the notice period or shortfall thereof. Is this amount deductible from the salary income of the employee?
What the employee is paying to the employer cannot come under the head 'Salaries' since he is not the employer's employer. This amount represents application of his income and therefore, it is not deductible. He has merely applied this income to discharge a liability and therefore, it is not tax deductible.
This is the view generally accepted by all accountants and the income tax department.
3. Employment after retirement can be less taxing
These days many employees are re-employed by their ex-employers on retainership or contractual basis after their retirement. The fact that the person happens also to be the ex-employee is immaterial and inconsequential.
Such a person enjoys better concessions than a normal employee. He can claim deductions for expenses incurred for earning his consultancy fee. Moreover, the TDS applied by the principal would be only 10% of the fee paid.
4. How gardener and helper can be tax-free perks
Here, two points are of great interest: � Circular 122, dated 19.10.73, clarified that if the employer employs a gardener for a building belonging to the employer, it would not be treated as a perk. This principle continues to be applicable even now with the possibility of it being extrapolated to other servants. � This is more interesting. A helper engaged for the performance of the duties of an office or employment of profit; is not considered as a perk under Rule 2BB, read with Sec. 10(14). Many employees, particularly at the top level, and especially in view of communication handshakes available through e-mail, do not necessarily work only in the office. Some part of the work is done at residence. We will go to the extent of stating that the employee can directly engage the services of a helper and claim reimbursement from the employer without it being considered as a perk.
5. Tax nuances when a house / flat is given on lease to employer
Top management category employees usually get rent-free residential house as a perk. Sometimes, the flat belongs to the employee, taken on lease by the company from the employee and the employee is allowed to reside in it.
In other words, the landlord of the residential flat used by the employee is the employee himself and simultaneously he is also a tenant.
Under such a situation, the employee will have to pay tax on the lease rent received as income from house property and also as perk. Is this double taxation? Definitely not. The employee is enjoying double benefit and will have to pay tax on each benefit separately.
Is this flat self-occupied or let-out? Of course it is let-out. No one can pay rent to himself.
The Sec. 80C deduction is possible both on self-occupied and let out flats. The interest is deductible in full since the flat is let out. If the employee pays some rent to his employer, this rent cannot be deducted from the lease rent for tax purpose. This rent will be taken cognisance of while computing the perk value.
Before the revision in perk values, many of the employees used to give their flats or the flats of their wives on lease to the employers and benefit immensely. Now, after the large-scale amendments to perk values, the advantage has been watered down.
Nevertheless, normally the lessor takes an interest-free deposit from the lessee. This is a deposit and not a loan. Consequently, it does not have any perk value. We do not think the Department will question the size of the deposit in such cases.
6. Interest on deposit for a leased flat
The ITO cannot treat the difference between the market rate of interest and the actual interest paid by the landlord to his tenant on deposits placed by the tenant in custody of the landlord, as further rent received. [CIT v Satya Co. Ltd., (1994) 75Taxman193 (Cal.)].
7. LTA and Relatives
As per the Rules, you can claim the LTA benefit only twice during the block of 4 years. For this purpose
You should be on leave.
You should travel.
During such travel you may have your family with you. Family includes spouse, children as well as dependent parents, brothers and sisters. In respect of children born on or after 1.10.98, the exemption will be restricted only to two surviving children unless the birth after one child has resulted in multiple births.
The expense incurred by you is exempt up to the LTA received.
Obviously, if your wife and other family members travel, without you accompanying them, no LTA can be claimed.
LTA and working couple
Take the case of a working couple. Both the husband and wife can claim the exemption on LTA from their employers and claim benefit for 4 journeys in one block. There is no need for them to take the precaution of not travelling twice during the same year.
Moreover, they can take the same family members or different ones as long as they stick to the definition of the members for this purpose.
8. Tax-free perks of ex-employees
Aditya Cement Staff Club v Union of India & Others is an interesting case which states that where an employee has resigned and is allowed to occupy company quarters free of rent or at concessional rent, it is not to be taken as perk value, unless it is a contractual obligation to that effect according to the terms of employment.
In order that any benefit, amenity or payment may be termed as perquisite, it must be in pursuance of a right conferred on or option given to the employee to receive such benefit or advantage from his employer.
Unless such advantage or benefit flows from the status of the person working as an employee it cannot be termed as perquisite. The employee must have a vested right to claim advantage or benefit whether in cash or in kind, in order to fall within the purview of perquisite as part of salaries taxable under the ITA.
9. Provident Fund not encashed
Interest on Registered Provident Fund (RPF) of an employee is tax-free. Does it still remain tax-free after the employee retires and does not claim his Provident Fund for say 2 to 3 years?
If one goes strictly according to the drafted provisions, it appears that this interest is tax-free since the amount becomes payable only when the ex-employee asks for it. However, we are told that many ITOs take the stand that the balance in Co-PF gets the colour and character of company fixed deposits when the employee retires. This stand is challengeable.
10. When PF becomes taxable
If an employee leaves the service before completion of 5 years, Rule 10 of Part A of Schedule IV, requires the trustees of a Recognised PF to deduct tax when the accumulated balance due to an employee is paid. This payment is to be treated as income chargeable under the head 'Salaries.'
Rule 9 puts a different responsibility on the Assessing Officer. He shall calculate the total of the various sums of tax which would have been payable by the employee in the respect of the total income for each of the related years to arrive at the amount by which such total exceeds the total of taxes paid by the employee for such years.
This excess amount is payable by the employee in addition to tax on the income during the year in which the accumulated balance of PF becomes payable.
According to Rule 8 of Part A of the Fourth Schedule, this requirement of 5 years shall not be applicable where the service has been terminated by reason of the employee's ill-health, or by the contraction or discontinuance of the employer's business or other causes beyond the control of the employee.
All the same, it is not clear if the employer's contribution becomes taxable if the employee has to retire on attaining superannuation age after a continuous service of less than 5 years. It is our considered opinion that since the retirement is beyond the control of the employee, the amount does not become taxable.
It is erroneous to feel that the employee's contribution to PF is not taxed during the year of contribution. It is fully taxed in any case. All he gets is the deduction which stands withdrawn if the employee withdraws the PF before 5 years. To tax the contribution once again in the year of withdrawal is tantamount to double taxation.
In the case of unrecognised provident fund, there is a triple taxation if the employee withdraws within 5 years. Not only he is not allowed any deduction on his own contribution but also the employer's contribution is taxed during the year of contribution and also during the year of withdrawal.
[Excerpt from the book, Taxpayer to Taxsaver by A. N. Shanbhag and Sandeep Shanbhag, published by Vision Books.]
Wednesday, August 13, 2008
BPO WORKER GANGRAPED BY CAB DRIVERS IN PUNE
It is becoming increasingly difficult for women to work on the night shift in BPOs. There have been cases of harassment while commuting to work and at office. And to top it all, heading back home in the office cab is very risky.
The rape and murder of a BPO employee in Pune last year, and in Bangalore two years before, show exactly what women workers are up against. Another BPO worker had acid thrown in her face when she objected to a cab driver’s advances. The Supreme Court has acknowledged these dangers by allowing the prosecution of a former Hewlett Packard director on Thursday, holding him responsible for the rape and murder of a BPO employee. Is it safe for women to work on night shifts?
There cannot be a worse case of animal display of sexually frustrated men ripping apart a girl. These men are sexually frustrated from childhood. Lack of openness in our society to address sexual questions or discussions is responsible for increased number of rape cases. We should make sex open. It will give vent to the frustration of these men. I think it is time to treat this issue openly rather than conceal it.
In India, BPO rape cases have increased in the recent past, especially during night shifts. The Pune incident came to light only when an FIR was lodged by the girl’s 25-year-old friend.
If this continues, then two important questions arise — will BPOs survive? Are women safe in BPOs?
The rape and murder of a BPO employee in Pune last year, and in Bangalore two years before, show exactly what women workers are up against. Another BPO worker had acid thrown in her face when she objected to a cab driver’s advances. The Supreme Court has acknowledged these dangers by allowing the prosecution of a former Hewlett Packard director on Thursday, holding him responsible for the rape and murder of a BPO employee. Is it safe for women to work on night shifts? There cannot be a worse case of animal display of sexually frustrated men ripping apart a girl. These men are sexually frustrated from childhood. Lack of openness in our society to address sexual questions or discussions is responsible for increased number of rape cases. We should make sex open. It will give vent to the frustration of these men. I think it is time to treat this issue openly rather than conceal it.
In India, BPO rape cases have increased in the recent past, especially during night shifts. The Pune incident came to light only when an FIR was lodged by the girl’s 25-year-old friend.
If this continues, then two important questions arise — will BPOs survive? Are women safe in BPOs?
Monday, August 11, 2008
Three Fishermen And Their Take On Life
At two extremes of human behaviour are complacent people and the ego-driven, restless, overstrivers.
The enlightened ones are beyond these two extremes.
Three people are fishing in a pond. The first has the normal ego-driven, self-centred mentality. The second is the complacent type. The third is an enlightened seer.
The first fisherman raves and rants when he does not catch fish. He blames his equipment, his wife, and his stars. He sits there with turmoil in his mind. He derives satisfaction from the fact that others haven’t caught any fish either. If he catches some fish, he compares these with what others have caught and is unhappy if his catch is less or if his fish are smaller. If his catch is more, he crows with satisfaction. In either case, he strives to get more the next time.
The complacent fisherman who has not caught any fish, spends the day reading and drinking. Finally, he sighs, withdraws his line, collects his belongings and goes home, thinking that this is what his destiny is and he cannot help it if he did not catch any fish. He will not try any better the next time, as he has convinced himself that his destiny is not in his hands.
The enlightened fisherman lives every moment he is by the pond in a state of superconsciousness. He feels the wind on his face, not only from his own point of view, but also of the wind. He sees himself as part of his boat, he finds himself revelling in every wave on the pond. He flies with every bird. And what of the fish? He is there on the pond. Knowing this, the fish will come to him like iron to a magnet. Because of that, his line is his conscious will, not coarse thread. You can substitute money, followers, whatever else you wish, for fish.
When the fishermen go home, they feel differently. The egodriven fisherman will be in a foul mood if he has not caught any or few fish, kicking his dog and making his and everyone else’s life miserable. If he has caught more fish than the others, he will boast about this to everyone he meets.
The second will go home and sleep complacently. The realised one is at home wherever he is, and he will continue to enjoy the bliss of being equally intensely everywhere.
Many seekers think that if they feel complacent, they are showing signs of spirituality. However, whereas the complacent person has not seen anything astounding, nor is likely to, the truly awakened one has experienced a vision of the world which blows his mind. He has found that there is no difference between himself and all he perceives.
He becomes aware that the reality of all that he perceives through his senses had led him to believe. It is creative in a manner he could not have even suspected. It is full.
In contrast, the complacent person skims over the world, ignoring it and deluding himself that he is pursuing a spiritual life. In fact, he and the world are charting a path indifferent to each other.
We often tend to put a garb of spiritualism on our indolence and justify it by saying that this is a result of the passive nature of Hinduism.
This is either based on a wrong perception of our religious philosophy or rationalisation. Those who hope to progress on the Path should not submit to this misunderstanding.
Kishore Asthana E-mail: asthana@yahoo.com
The enlightened ones are beyond these two extremes.Three people are fishing in a pond. The first has the normal ego-driven, self-centred mentality. The second is the complacent type. The third is an enlightened seer.
The first fisherman raves and rants when he does not catch fish. He blames his equipment, his wife, and his stars. He sits there with turmoil in his mind. He derives satisfaction from the fact that others haven’t caught any fish either. If he catches some fish, he compares these with what others have caught and is unhappy if his catch is less or if his fish are smaller. If his catch is more, he crows with satisfaction. In either case, he strives to get more the next time.
The complacent fisherman who has not caught any fish, spends the day reading and drinking. Finally, he sighs, withdraws his line, collects his belongings and goes home, thinking that this is what his destiny is and he cannot help it if he did not catch any fish. He will not try any better the next time, as he has convinced himself that his destiny is not in his hands.
The enlightened fisherman lives every moment he is by the pond in a state of superconsciousness. He feels the wind on his face, not only from his own point of view, but also of the wind. He sees himself as part of his boat, he finds himself revelling in every wave on the pond. He flies with every bird. And what of the fish? He is there on the pond. Knowing this, the fish will come to him like iron to a magnet. Because of that, his line is his conscious will, not coarse thread. You can substitute money, followers, whatever else you wish, for fish.
When the fishermen go home, they feel differently. The egodriven fisherman will be in a foul mood if he has not caught any or few fish, kicking his dog and making his and everyone else’s life miserable. If he has caught more fish than the others, he will boast about this to everyone he meets.
The second will go home and sleep complacently. The realised one is at home wherever he is, and he will continue to enjoy the bliss of being equally intensely everywhere.
Many seekers think that if they feel complacent, they are showing signs of spirituality. However, whereas the complacent person has not seen anything astounding, nor is likely to, the truly awakened one has experienced a vision of the world which blows his mind. He has found that there is no difference between himself and all he perceives.
He becomes aware that the reality of all that he perceives through his senses had led him to believe. It is creative in a manner he could not have even suspected. It is full.
In contrast, the complacent person skims over the world, ignoring it and deluding himself that he is pursuing a spiritual life. In fact, he and the world are charting a path indifferent to each other.
We often tend to put a garb of spiritualism on our indolence and justify it by saying that this is a result of the passive nature of Hinduism.
This is either based on a wrong perception of our religious philosophy or rationalisation. Those who hope to progress on the Path should not submit to this misunderstanding.
Kishore Asthana E-mail: asthana@yahoo.com
Can’t rely on unsound mind in death cases: HC
The dying declaration of a person suspected to be of “unsound mind’’ cannot stand legal scrutiny. The Bombay high court recently upheld the acquittal of an Osmanabad resident who was charged with allegedly setting ablaze his sister-in-law after she rejected his sexual overtures. Despite three dying declarations given by the victim, a division bench comprising Justice N V Dabholkar and Justice P R Borkar found it hard to believe the statements after it was revealed that the woman was suffering from postpartum psychosis after her last child’s birth.
“It is unsafe to base a conviction on the dying declarations, oral as well as those recorded by the executive magistrate and the head constable, especially when they are pitted against the defence of unsoundness of the mind of the deceased,’’ remarked the judges while agreeing with the trial court that Sanjay Raut could not be held guilty of his sister-in-law Saraswatibai’s murder.
Postpartum psychosis is a mental illness involving the rapid onset of psychotic symptoms in a woman following childbirth. It is more serious than postpartum depression, which affects 5% to 25% of women after childbirth (in some cases, men too), and sees symptoms like low self-esteem, eating disturbances, social withdrawal and a feeling like they cannot take care of the baby.
POSTPARTUM PSYCHOSIS One in 1,000 new moms turn violent
Postpartum psychosis is a mental illness involving the rapid onset of psychotic symptoms in a woman following childbirth. It is more serious than postpartum depression, which affect 5% to 25% of women after childbirth (in some cases men too), and sees symptoms like low self-esteem, eating disorders and social withdrawal.
Postpartum psychosis, which is more uncommon and is seen in one or two women per 1,000 births, is a psychiatric disorder. About 5% of the women with this disorder were found to have committed suicide, while 4% had harmed their baby. According to psychiatrist Dr Harish Shetty, “Women suffering from postpartum psychosis lose touch with reality and might have hallucinations and hear voices. They suspect those around them and may also have thought disorders, which include violent behaviour and irrelevant, incoherent talk.’’
Dr Shetty added that there were women in jails for crimes related to postpartum psychosis. “It is also a fact that crimes against the mentally ill go unpunished in many cases,’’ he said.
In the present case, the police said, on the night of April 12, 1989, the victim, Saraswatibai, rejected her brother-in-law Raut’s sexual overtures, following which he set her ablaze. She was taken to hospital with 90% burns, where she died. Before her death, however, she gave three dying declarations, one to her mother, another to a constable and the third to the executive magistrate. The HC found discrepancies in the recording of the statements.
During the trial, the defence produced two doctors who said Saraswatibai was being treated for postpartum psychosis. The doctors testified that after the birth of her child, the victim had become violent and had been asked to undergo treatment, including electro-convulsive therapy. The victim’s husband further told the court that his wife was “was behaving abnormally. She was not feeding her child and also said she wanted to die’’.
Her husband’s statement in support of his brother, as well as the fact that none of her three children, including her newborn son slept with her, weighed with the court which termed it as unusual.
“It is unsafe to base a conviction on the dying declarations, oral as well as those recorded by the executive magistrate and the head constable, especially when they are pitted against the defence of unsoundness of the mind of the deceased,’’ remarked the judges while agreeing with the trial court that Sanjay Raut could not be held guilty of his sister-in-law Saraswatibai’s murder.
Postpartum psychosis is a mental illness involving the rapid onset of psychotic symptoms in a woman following childbirth. It is more serious than postpartum depression, which affects 5% to 25% of women after childbirth (in some cases, men too), and sees symptoms like low self-esteem, eating disturbances, social withdrawal and a feeling like they cannot take care of the baby.
POSTPARTUM PSYCHOSIS One in 1,000 new moms turn violent
Postpartum psychosis is a mental illness involving the rapid onset of psychotic symptoms in a woman following childbirth. It is more serious than postpartum depression, which affect 5% to 25% of women after childbirth (in some cases men too), and sees symptoms like low self-esteem, eating disorders and social withdrawal.
Postpartum psychosis, which is more uncommon and is seen in one or two women per 1,000 births, is a psychiatric disorder. About 5% of the women with this disorder were found to have committed suicide, while 4% had harmed their baby. According to psychiatrist Dr Harish Shetty, “Women suffering from postpartum psychosis lose touch with reality and might have hallucinations and hear voices. They suspect those around them and may also have thought disorders, which include violent behaviour and irrelevant, incoherent talk.’’
Dr Shetty added that there were women in jails for crimes related to postpartum psychosis. “It is also a fact that crimes against the mentally ill go unpunished in many cases,’’ he said.
In the present case, the police said, on the night of April 12, 1989, the victim, Saraswatibai, rejected her brother-in-law Raut’s sexual overtures, following which he set her ablaze. She was taken to hospital with 90% burns, where she died. Before her death, however, she gave three dying declarations, one to her mother, another to a constable and the third to the executive magistrate. The HC found discrepancies in the recording of the statements.
During the trial, the defence produced two doctors who said Saraswatibai was being treated for postpartum psychosis. The doctors testified that after the birth of her child, the victim had become violent and had been asked to undergo treatment, including electro-convulsive therapy. The victim’s husband further told the court that his wife was “was behaving abnormally. She was not feeding her child and also said she wanted to die’’.
Her husband’s statement in support of his brother, as well as the fact that none of her three children, including her newborn son slept with her, weighed with the court which termed it as unusual.
Bihar had decided to treat a phone call seeking information as an RTI application.
If Sonia Gandhi has her way, right to information can be a mere phone call away. Taking a non-partisan approach to governance, the Congress president has called upon Congress chief ministers to adopt the Bihar model of making RTI more accessible to the poor and illiterate.
In 2007, Bihar had decided to treat a phone call seeking information as an RTI application.
However, the UPA government seems to fear that it would expose itself to greater accountability if it subsidised the proposed RTI call centre at the Centre. Despite giving in-principle clearance to the call centre, the department of personnel and training (DoPT), the nodal agency for RTI, is unsure whether it should bear the cost of converting a phone call into an RTI application.
Personnel minister Prithviraj Chavan told TOI that what the Centre was drawing from the Bihar model was the concept of e-filing of RTI applications over the telephone. “We have not yet taken a call on whether the applicant should be spared the cost of the call centre,’’ he said.
If the government decides to pass on the cost of the call centre to the applicant, the charge he would have to bear, besides the regular fee of Rs 10 per RTI application, is estimated to be Rs 35.
Similarly, for the two layers of appeal, which normally do not entail any fee, the RTI applicant would have to pay Rs 35 as the call centre charge for each appeal. Thus, for taking the call centre route, the amount he would end up paying for the entire RTI process is Rs 115 instead of the usual Rs 10.
On the other hand, if the government bears the cost of the call centre, all that it would levy through the telephone bill is the RTI fee of Rs 10 and the regular call charge. This option would be in tune with the letter Sonia Gandhi wrote on April 17 to Congress CMs commending the Bihar model to them “for taking the RTI Act to the doorstep of poor and illiterate masses through the use of information technology’’.
Doesn’t the non-subsidised option involving over a 10-fold increase in the charges defeat the call centre’s object of taking RTI to the poor and illiterate? Chavan said if the call centre route worked out to be more expensive, the citizen had the option of sending his RTI application by post. “Cost is not a major issue—whether for the government or for the applicant,’’ he added.
The difference in perceptions between Sonia Gandhi and Chavan is obvious. While Chavan sees the call centre essentially as a convenient mode of filing RTI applications, the UPA chairperson looks at it as a breakthrough for empowering the masses to enforce accountability.
HOW THE RTI CALL CENTRE WORKS
Even an illiterate person will be able to file an RTI application as he just has to say over the phone what he wishes to know
The call centre executive will draft the application on the basis of the taped phone call.The onus of identifying the right public authority and sending the application to him is on the call centre
No need to make a DD or postal order for depositing a fee as it will be charged in the phone bill
Appeals can also be filed through the call centre from anywhere in the country.
In 2007, Bihar had decided to treat a phone call seeking information as an RTI application.
However, the UPA government seems to fear that it would expose itself to greater accountability if it subsidised the proposed RTI call centre at the Centre. Despite giving in-principle clearance to the call centre, the department of personnel and training (DoPT), the nodal agency for RTI, is unsure whether it should bear the cost of converting a phone call into an RTI application.Personnel minister Prithviraj Chavan told TOI that what the Centre was drawing from the Bihar model was the concept of e-filing of RTI applications over the telephone. “We have not yet taken a call on whether the applicant should be spared the cost of the call centre,’’ he said.
If the government decides to pass on the cost of the call centre to the applicant, the charge he would have to bear, besides the regular fee of Rs 10 per RTI application, is estimated to be Rs 35.
Similarly, for the two layers of appeal, which normally do not entail any fee, the RTI applicant would have to pay Rs 35 as the call centre charge for each appeal. Thus, for taking the call centre route, the amount he would end up paying for the entire RTI process is Rs 115 instead of the usual Rs 10.
On the other hand, if the government bears the cost of the call centre, all that it would levy through the telephone bill is the RTI fee of Rs 10 and the regular call charge. This option would be in tune with the letter Sonia Gandhi wrote on April 17 to Congress CMs commending the Bihar model to them “for taking the RTI Act to the doorstep of poor and illiterate masses through the use of information technology’’.
Doesn’t the non-subsidised option involving over a 10-fold increase in the charges defeat the call centre’s object of taking RTI to the poor and illiterate? Chavan said if the call centre route worked out to be more expensive, the citizen had the option of sending his RTI application by post. “Cost is not a major issue—whether for the government or for the applicant,’’ he added.
The difference in perceptions between Sonia Gandhi and Chavan is obvious. While Chavan sees the call centre essentially as a convenient mode of filing RTI applications, the UPA chairperson looks at it as a breakthrough for empowering the masses to enforce accountability.
HOW THE RTI CALL CENTRE WORKS
Even an illiterate person will be able to file an RTI application as he just has to say over the phone what he wishes to know
The call centre executive will draft the application on the basis of the taped phone call.The onus of identifying the right public authority and sending the application to him is on the call centre
No need to make a DD or postal order for depositing a fee as it will be charged in the phone bill
Appeals can also be filed through the call centre from anywhere in the country.
Court rules out rituals
Says it is not necessary to perform religious ceremonies to be called a believer
NEW DELHI: If a man does not perform a ritual, he cannot be termed a non-believer, a court here has said.
“Rituals have their own place in society but cannot be allowed to overtake individual faith,” Additional District Judge Kamini Lau said.
It passed the observation while rejecting a contention of Munirka Budh Vihar Trust that R S Gautam, who represented the Buddhist Society of India, was not a Buddhist as he had not performed ‘Dhammadiksha' ceremony and continued to enjoy the status of Scheduled Caste (SC).
“Not being a Buddhist in view of his having not performed Dhammadiksha ceremony does not seem to be very sound in the present circumstances more so as the very concept of caste and rituals stand diluted in Buddhism,” the court said.
About the contention that a person belonging to Scheduled Caste adopting Buddhism no more remains a member of the reserved category, the court said, in view of the Scheduled Caste Presidential Order of 1950, a Scheduled Caste who adopts Buddhism or Sikhism may maintain his previous status.
In its appeal, the Trust had pleaded that Buddhist Society of India had no control over it as only Buddhists can become its members. It argued that Gautam cannot be an SC and Buddhist simultaneously. Rejecting the appeal, the court passed the decree in favour of Buddhist Society of India.
NEW DELHI: If a man does not perform a ritual, he cannot be termed a non-believer, a court here has said.
“Rituals have their own place in society but cannot be allowed to overtake individual faith,” Additional District Judge Kamini Lau said.
It passed the observation while rejecting a contention of Munirka Budh Vihar Trust that R S Gautam, who represented the Buddhist Society of India, was not a Buddhist as he had not performed ‘Dhammadiksha' ceremony and continued to enjoy the status of Scheduled Caste (SC).
“Not being a Buddhist in view of his having not performed Dhammadiksha ceremony does not seem to be very sound in the present circumstances more so as the very concept of caste and rituals stand diluted in Buddhism,” the court said.
About the contention that a person belonging to Scheduled Caste adopting Buddhism no more remains a member of the reserved category, the court said, in view of the Scheduled Caste Presidential Order of 1950, a Scheduled Caste who adopts Buddhism or Sikhism may maintain his previous status.
In its appeal, the Trust had pleaded that Buddhist Society of India had no control over it as only Buddhists can become its members. It argued that Gautam cannot be an SC and Buddhist simultaneously. Rejecting the appeal, the court passed the decree in favour of Buddhist Society of India.
Friday, August 8, 2008
Flat owners told to pay stamp duty arrears of earlier tenants
Mumbai: Thousands of flat owners queuing up everyday to take advantage of the state government’s stamp duty amnesty scheme have been left totally confused due to the lack of clarity in its implementation. As per the scheme, which commenced in June, flat owners have until September 8 to pay stamp duty at the rate that was applicable when the property was bought.
But what comes as a major jolt to many is a little known 2006 circular issued by the state inspector general of registration and controller of stamps which holds that the
current owner is liable to pay the unpaid stamp duty of the previous occupant of the flat at the current market value.
“If there has been a chain of transactions involving a flat over the past two decades and no stamp duty has been paid as required under the sale deed, the present owner must pay the stamp duty on all the earlier sale deeds,’’ said Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association. “Not many people know that such a circular exists,’’he added.
A senior official of the stamp duty and registration department at the old Custom House in south Mumbai told TOI that it was the duty of the owner to find out all the details of the property that he\she was purchasing.
Amnesty Scheme
The amnesty scheme was announced early this year. People who had evaded stamp duty on their property purchase agreements can now regularise their transactions with a token penalty of Rs 500 for stamp duty of Rs 25,000 and a Rs 1,000 fine for stamp duty over Rs 25,000. Once the scheme ends on September 8, residents will have to pay a 2% penalty on the total duty amount per month from the date of the flat’s purchase, with the maximum limit being 200%.
WHOSE DUTY IS IT?
Flat Owners Told To Pay Levy That Previous Buyers Of Their Homes Didn’t Clear
Mumbai: Although a flat owner may have paid his stamp duty, he is liable to also pay the duty that previous owners of his flat did not pay, said a state government official who sits at Old Customs House. However, he hinted that discussions were on within the department to see how this issue could be resolved.
A 2006 circular calls for the payments on previous agreements. “Any legislation with retrospective effect is regressive. What makes this especially odious is that it holds the current incumbent of the property liable for taxes on past transactions that earlier did not attract such stamp duty,’’ said an angry Suresh Mehta, resident of a cooperative housing society in the western suburbs. “It also threatens him with confiscation of his property just because he is a soft target.”
The issue surrounding the 2006 circular has come up while stamp duty defaulters are being identified so that they can clear dues under a current amnesty scheme. “Unlike other amnesty schemes which are aimed at earning revenue from tax dodgers and willful defaulters, this one aims at making legitimate duty payers declared as defaulters for no fault of theirs,’’ Mehta added.
Chembur resident Sanjay Kothary, one of the thousands wanting to take advantage of the amnesty scheme, said, “How can any flat or shopowner produce documents as far back as two to three decades on transactions he was not a party to? In most cases, he may not even have been born and the parties that were involved may have died or emigrated, making it impossible to get sale deeds.’’
Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association, pointed out another lacuna. “People who have purchased flats between 1980 and 1985 are being told they have to pay stamp duty on the current market value. The department’s strange logic is that between 1980 and 1985 there was no provision to collect stamp duty on the sale agreement, but it was to be recovered at the time of conveyance as per the current market value,’’ he said.
For example, if a person purchased a flat in 1980 for Rs 1 lakh, the stamp duty then would have been a mere Rs 11,000. But now, the department wants him to pay the stamp duty on the present market value. If the flat costs Rs 1 crore today, the duty works out to a hefty Rs 5 lakh.
Prior to July 4, 1980, parties tended to enter into an agreement where people grossly undervalued properties. It was only later that the government introduced the ready reckoner rates to determine the true value of property.
Prabhu also complained that the allotment letters issued by societies to flat owners were being rejected by the stamp office. On the other hand, allotment letters issued by Mhada were being accepted.
WHAT IS STAMP DUTY
Stamp duty is a tax collected by the state government on different documents executed in the state as per the Bombay Stamp Act, 1958. The Act specifies 63 documents, one of them being the agreement for property sales
Before December 10, 1985, stamp duty was only Rs 5 on the agreement for sale. But the second document executed after the transaction—sale deed/transfer deed/conveyance/possession letter—carried a stamp duty of: 10% for upto Rs 50,000, 12% for Rs 50,000 to Rs 1 lakh and 15% for over Rs 1 lakh
On December 10, 1985, the government amended the Bombay Stamp Act by merging the agreement for sale and sale deed. Stamp duty on residential properties was reduced to 1% for property worth upto Rs 2.5 lakh, 4% for Rs 2.5 lakh to Rs 5 lakh, 6% for Rs 5 lakh to Rs 7.5 lakh, 8% for Rs 7.5 lakh to Rs 10 lakh; and 10% for over Rs 10 lakh
In 2004, the state reduced the maximum slab to 5% for all properties valued over Rs 5 lakh
AMNESTY SEEKERS’ PROBLEMS
While pre-1980 and post-1985 agreements can be stamped on market rates at time of purchase, officials want to use prevailing rates to stamp 1980-85 agreements
State has not issued directives for documents executed prior to December 10, 1985
People don’t want to pay duty on past transactions
Serpentine queues. Clerks refuse to accept documents
People claim that the officials themselves areconfused
DOCUMENTS NEEDED
To avail of the amnesty scheme, fill up the prescribed application form available with various stamp offices located at Old Customs House, Fort; MMRDA headquarters, Bandra-Kurla Complex; and Collector of Stamps, near Chembur flyover
Notarised affidavit giving details of the property Original property agreement
One piece of evidence proving date of execution of document, such as electric bill, BMC assessment bill, phone bill, share certificate, ration card, passport, etc
Society letter showing area of flat, year of construction, floors, city survey number, etc
Nauzer Bharucha | TNN
But what comes as a major jolt to many is a little known 2006 circular issued by the state inspector general of registration and controller of stamps which holds that the current owner is liable to pay the unpaid stamp duty of the previous occupant of the flat at the current market value.
“If there has been a chain of transactions involving a flat over the past two decades and no stamp duty has been paid as required under the sale deed, the present owner must pay the stamp duty on all the earlier sale deeds,’’ said Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association. “Not many people know that such a circular exists,’’he added.
A senior official of the stamp duty and registration department at the old Custom House in south Mumbai told TOI that it was the duty of the owner to find out all the details of the property that he\she was purchasing.
Amnesty Scheme
The amnesty scheme was announced early this year. People who had evaded stamp duty on their property purchase agreements can now regularise their transactions with a token penalty of Rs 500 for stamp duty of Rs 25,000 and a Rs 1,000 fine for stamp duty over Rs 25,000. Once the scheme ends on September 8, residents will have to pay a 2% penalty on the total duty amount per month from the date of the flat’s purchase, with the maximum limit being 200%.
WHOSE DUTY IS IT?
Flat Owners Told To Pay Levy That Previous Buyers Of Their Homes Didn’t Clear
Mumbai: Although a flat owner may have paid his stamp duty, he is liable to also pay the duty that previous owners of his flat did not pay, said a state government official who sits at Old Customs House. However, he hinted that discussions were on within the department to see how this issue could be resolved. A 2006 circular calls for the payments on previous agreements. “Any legislation with retrospective effect is regressive. What makes this especially odious is that it holds the current incumbent of the property liable for taxes on past transactions that earlier did not attract such stamp duty,’’ said an angry Suresh Mehta, resident of a cooperative housing society in the western suburbs. “It also threatens him with confiscation of his property just because he is a soft target.”
The issue surrounding the 2006 circular has come up while stamp duty defaulters are being identified so that they can clear dues under a current amnesty scheme. “Unlike other amnesty schemes which are aimed at earning revenue from tax dodgers and willful defaulters, this one aims at making legitimate duty payers declared as defaulters for no fault of theirs,’’ Mehta added.
Chembur resident Sanjay Kothary, one of the thousands wanting to take advantage of the amnesty scheme, said, “How can any flat or shopowner produce documents as far back as two to three decades on transactions he was not a party to? In most cases, he may not even have been born and the parties that were involved may have died or emigrated, making it impossible to get sale deeds.’’
Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association, pointed out another lacuna. “People who have purchased flats between 1980 and 1985 are being told they have to pay stamp duty on the current market value. The department’s strange logic is that between 1980 and 1985 there was no provision to collect stamp duty on the sale agreement, but it was to be recovered at the time of conveyance as per the current market value,’’ he said.
For example, if a person purchased a flat in 1980 for Rs 1 lakh, the stamp duty then would have been a mere Rs 11,000. But now, the department wants him to pay the stamp duty on the present market value. If the flat costs Rs 1 crore today, the duty works out to a hefty Rs 5 lakh. Prior to July 4, 1980, parties tended to enter into an agreement where people grossly undervalued properties. It was only later that the government introduced the ready reckoner rates to determine the true value of property.
Prabhu also complained that the allotment letters issued by societies to flat owners were being rejected by the stamp office. On the other hand, allotment letters issued by Mhada were being accepted.
WHAT IS STAMP DUTY
Stamp duty is a tax collected by the state government on different documents executed in the state as per the Bombay Stamp Act, 1958. The Act specifies 63 documents, one of them being the agreement for property sales Before December 10, 1985, stamp duty was only Rs 5 on the agreement for sale. But the second document executed after the transaction—sale deed/transfer deed/conveyance/possession letter—carried a stamp duty of: 10% for upto Rs 50,000, 12% for Rs 50,000 to Rs 1 lakh and 15% for over Rs 1 lakh
On December 10, 1985, the government amended the Bombay Stamp Act by merging the agreement for sale and sale deed. Stamp duty on residential properties was reduced to 1% for property worth upto Rs 2.5 lakh, 4% for Rs 2.5 lakh to Rs 5 lakh, 6% for Rs 5 lakh to Rs 7.5 lakh, 8% for Rs 7.5 lakh to Rs 10 lakh; and 10% for over Rs 10 lakh
In 2004, the state reduced the maximum slab to 5% for all properties valued over Rs 5 lakh
AMNESTY SEEKERS’ PROBLEMS
While pre-1980 and post-1985 agreements can be stamped on market rates at time of purchase, officials want to use prevailing rates to stamp 1980-85 agreements
State has not issued directives for documents executed prior to December 10, 1985
People don’t want to pay duty on past transactions
Serpentine queues. Clerks refuse to accept documents
People claim that the officials themselves areconfused
DOCUMENTS NEEDED
To avail of the amnesty scheme, fill up the prescribed application form available with various stamp offices located at Old Customs House, Fort; MMRDA headquarters, Bandra-Kurla Complex; and Collector of Stamps, near Chembur flyover
Notarised affidavit giving details of the property Original property agreement
One piece of evidence proving date of execution of document, such as electric bill, BMC assessment bill, phone bill, share certificate, ration card, passport, etc
Society letter showing area of flat, year of construction, floors, city survey number, etc
Nauzer Bharucha | TNN
Thursday, August 7, 2008
Defaulted on home loan? It’s not the end of the world
ALMOST every home loan borrower has this niggling fear: What if I default? Higher interest rates could hit those with floating rate home loans, triggering a rise in defaults.
A loan, which could be comfortably serviced at an 8% floating interest rate could cause substantial discomfort after the rates rise to around 12%. For some, it could even lead to a problem in repayment. This scary scenario isn’t all that rare. According to rating agency Crisil, the share of bad loans is likely to swell to 4% of banks’ total loans in the next two years.
In case of a default, it is best to approach the lender for an amicable settlement. If all efforts undertaken for repayment fail, the lender is likely to take over and sell the mortgaged property. Nodoubt, it is very painful to let go of your prized possession, which you may have acquired with your lifetime’s savings. However, in such circumstances, borrowers need to keep an eye on their rights, which provide adequate opportunity to repay.
As regulated entities, there are certain limits that banks cannot cross. For instance, RBI guidelines do not allow a lender to repossess without proper notice. The central bank also has norms that are taken into consideration under specific circumstances. There is a well-laid out procedure for taking possession of the security, provisions regarding a final chance to repay and a procedure for sale. These are in addition to the strict guidelines for recovery agents.
Lenders take recourse to Sarfaesi Act
USUALLY, banks invoke the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act for a quick recovery. This involves a 60-day notice period. But the Act states that such a notice cannot be issued until the borrower’s account is classified as a non-performing asset; that is, when it is 90 days overdue. “If the borrower fails to repay even after the notice period, the bank can go ahead with the sale. However, in order to sell, the bank has to serve another 30-day notice mentioning the sale,” Abhay Debt Counselling Centre debt counselling head VN Kulkarni said.
Further, if your mortgaged home has to be sold, the bank has to publish a notice regarding the same in two leading newspapers specifying the reserve price. The sale has to be a private treaty sale — based on conditions mutually agreed upon by the bank and the borrower. “If you feel the property is undervalued, you can raise an objection. However, in case the auction is done through the court, an independent valuer is appointed for carrying out the valuation,” said Poorvi Chothani, proprietor of law firm LawQuest. “You can even sell your own house in order to repay the loan,” PricewaterhouseCoopers associate director (financial services) Robin Roy said. “The borrower can introduce a prospective buyer to the bank or inform the bank about his intention to sell the property for clearing the dues. However, the bank will not part with the title deeds till all dues are fully settled,” added Mr Kulkarni.
If the sale proceeds exceed the outstanding loan, you are entitled to receive the surplus money unless the loan agreement states otherwise or prescribes a timeframe.
“In case the auction is done through court, the proceeds are deposited with the court and the surplus proceeds are returned to the borrower within a reasonable period. When it comes to private treaty, the parties can mutually decide on the time period,” LawQuest associate Rekha Chakri said.
Preeti Kulkarni
A loan, which could be comfortably serviced at an 8% floating interest rate could cause substantial discomfort after the rates rise to around 12%. For some, it could even lead to a problem in repayment. This scary scenario isn’t all that rare. According to rating agency Crisil, the share of bad loans is likely to swell to 4% of banks’ total loans in the next two years. In case of a default, it is best to approach the lender for an amicable settlement. If all efforts undertaken for repayment fail, the lender is likely to take over and sell the mortgaged property. Nodoubt, it is very painful to let go of your prized possession, which you may have acquired with your lifetime’s savings. However, in such circumstances, borrowers need to keep an eye on their rights, which provide adequate opportunity to repay.
As regulated entities, there are certain limits that banks cannot cross. For instance, RBI guidelines do not allow a lender to repossess without proper notice. The central bank also has norms that are taken into consideration under specific circumstances. There is a well-laid out procedure for taking possession of the security, provisions regarding a final chance to repay and a procedure for sale. These are in addition to the strict guidelines for recovery agents.
Lenders take recourse to Sarfaesi Act
USUALLY, banks invoke the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act for a quick recovery. This involves a 60-day notice period. But the Act states that such a notice cannot be issued until the borrower’s account is classified as a non-performing asset; that is, when it is 90 days overdue. “If the borrower fails to repay even after the notice period, the bank can go ahead with the sale. However, in order to sell, the bank has to serve another 30-day notice mentioning the sale,” Abhay Debt Counselling Centre debt counselling head VN Kulkarni said. Further, if your mortgaged home has to be sold, the bank has to publish a notice regarding the same in two leading newspapers specifying the reserve price. The sale has to be a private treaty sale — based on conditions mutually agreed upon by the bank and the borrower. “If you feel the property is undervalued, you can raise an objection. However, in case the auction is done through the court, an independent valuer is appointed for carrying out the valuation,” said Poorvi Chothani, proprietor of law firm LawQuest. “You can even sell your own house in order to repay the loan,” PricewaterhouseCoopers associate director (financial services) Robin Roy said. “The borrower can introduce a prospective buyer to the bank or inform the bank about his intention to sell the property for clearing the dues. However, the bank will not part with the title deeds till all dues are fully settled,” added Mr Kulkarni.
If the sale proceeds exceed the outstanding loan, you are entitled to receive the surplus money unless the loan agreement states otherwise or prescribes a timeframe.
“In case the auction is done through court, the proceeds are deposited with the court and the surplus proceeds are returned to the borrower within a reasonable period. When it comes to private treaty, the parties can mutually decide on the time period,” LawQuest associate Rekha Chakri said.
Preeti Kulkarni
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