REAL ESTATE
 


Realscape 2010
Chandigarh’s periphery hogged the limelight
With the launch of major residential and commercial projects, Chandigarh’s periphery caught the fancy of major real estate players in the year 2010. While private real estate players were engaged in a no-holds-barred competition to take their share of the ever-increasing realty market, government agencies also put their best foot forward by coming out with housing schemes which fired the imagination of investors and end-users.

REALSCAPE - 2010 Haryana
On way to robust growth
The state of Haryana is on a song. Be it sports or infrastructural development, Haryana is peaking on every front. The state has become the centrepiece of development in North India. Because of its strategic location, most of the industrial as well as infrastructural giants have a presence in Haryana. Though a major factor behind all this rapid growth is the fact that nearly 55% of the National Capital Region falls in Haryana, even if we have a look beyond the two sparkling gems of Gurgaon and Faridabad, the development of the state is in the pink of health. Massive development is taking place on either side of the GT Road.

Deck up your home this X’mas
The psychedelic lights of merriment are brightening up your mood like never before. And, the nice sunny weather during the past few days has left you warmed up for revelry. To top it up, the delicate breeze blowing soft across the Christmas trees in the arcades is bringing along with it the whiff of a longing to celebrate the day in panache. So, what are you waiting for?

TAX TIPS
Agri land as capital asset
Q. In reply to query in The Tribune of Saturday, December 11, 2010, it has been stated by you that "The Govt. has issued a notification which specifies the distance from the Municipal limits in order to a certain whether a particular agricultural land would be treated as a Capital Asset. The taxability of capital gain arising on transfer thereof would depend upon the agricultural land being situated within the prescribed distance."

REAL talk
‘We aim to give world-class services to senior citizens’
Jaivir Singh Jaivir Singh, vice-president, Impact Group of Companies, which has interests in automotive retail, financing and real estate, talks about the present status of projects, especially for aged and future plans of his company. Schooled at prestigious Doon School in Dehradun, Jaivir had studied marketing and advertising at LCP, London, and also completed a summer course at the London School of Economics in corporate finance and business analysis.
Jaivir Singh

GRound REALTY
Taking care of hidden structural material
During the construction of a house, many structural items get hidden under attractive finishes. The quality of these items contributes towards the life and serviceability of the building. Good quality items demand minimum post-construction maintenance and create least botheration for the owner. It is therefore essential to pay special attention to these items. These can be watched during construction stage only. Later on, you never know what is hidden behind attractive finishes. This question intrigues you most whenever you buy a ready built apartment also.






 

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Realscape 2010
Chandigarh’s periphery hogged the limelight
Pradeep Sharma

With the launch of major residential and commercial projects, Chandigarh’s periphery caught the fancy of major real estate players in the year 2010.

While private real estate players were engaged in a no-holds-barred competition to take their share of the ever-increasing realty market, government agencies also put their best foot forward by coming out with housing schemes which fired the imagination of investors and end-users.

Major realtors, including the DLF, Parsvanth, TDI and Omaxe, strengthened their presence in the region by launching housing projects.The DLF came out with the Panchkula Valley and announced its intentions of launching a mega project comprising commercial and residential sites in the upcoming Mullanpur urban estate.The Omaxe came up with a residential township in the jurisdiction of the Mullanpur urban estate a few kilometres from Chandigarh.The TDI completed its shopping mall-cum-multiplex in Sector 17, Chandigarh, besides concentrating on its projects in the periphery.

Parsvnath, after burning its fingers in the Film City and Prideasia luxury housing project in Chandigarh, launched the housing projects in Panchkula and Rajpura.

Chandigarh’s periphery burst at seams with the launch of scores of residential and commercial projects by both local and national builders.The glut in the property market went a long way in confusing the general investors, who preferred investing in government-promoted housing ventures.

For instance, the Aerocity project of the Greater Mohali Development Authority (GMADA) was the biggest money-spinner with investors and end-users investing over Rs 9,400 crore for about 4,000 plots near the upcoming international airport.

In fact, the consumer was the king with thousands of apartments to choose from in Chandigarh’s periphery. The periphery burst at seams with the launch of residential and commercial projects by both big and small promoters trying to have a foothold in the region.With demand failing to catch up with supply, discounts and other incentives continued to rule the roost in the apartments market.

Given tricity’s strategic location and Chandigarh Administration’s proposed plan to run Metro in Chandigarh and adjoining towns, the realtors moved beyond the tricity to newer towns for development.Towns like Dera Bassi, Kharar, Lalru, Baddi, Kalka and Kurali were on the radar of major and minor realtors who scrambled for the scarce land in city’s periphery.

Will a square yard cost ` 1 lakh in city?

Real estate observers claim that given Chandigarh auctions’ past record, the rate for one square yard of residential property could well touch Rs 1 lakh per square yard in the forthcoming auction on December 29 and 30. In the December 2009 auction, a 5-marla plot in Sector 32 was sold for Rs 1.4 crore at a whopping price of Rs 1.06 lakh per square yard, while the average rate for residential property was Rs 74,820.The 5-marla plot was later surrendered by the highest bidder.

Highlights

  • Aerocity remained biggest money-spinner aggregating over Rs 9,400 crore for GMADA
  • Major realtors targeted Chandigarh’s periphery, new towns
  • Chandigarh Housing Board drew flak for Rs 50-lakh two-bedroom flat
  • Plotted colonies paved way for apartments
  • Chandigarh, periphery caught the fancy of investors, NRIs

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REALSCAPE - 2010 Haryana
On way to robust growth
Charandeep Singh

Price Index


The state of Haryana is on a song. Be it sports or infrastructural development, Haryana is peaking on every front. The state has become the centrepiece of development in North India. Because of its strategic location, most of the industrial as well as infrastructural giants have a presence in Haryana. Though a major factor behind all this rapid growth is the fact that nearly 55% of the National Capital Region falls in Haryana, even if we have a look beyond the two sparkling gems of Gurgaon and Faridabad, the development of the state is in the pink of health. Massive development is taking place on either side of the GT Road.

Towns like Sonepat, Kundli, Panipat, Karnal and Ambala are swarming with activity. SEZs are being developed in the vicinity of these small towns. And as a cascading effect of all factors mentioned above, the real estate activity has shown a lot of appreciation and those who are investing are bound to get amazing returns on their corpus invested.

Now let us study the dynamics of real estate in these towns in the year gone by.

Prime movers

The year started on a sedate note, with the realty sector still limping out of the side effects of recession, but hectic activity was witnessed in the second half of the year. Kundli and Sonepat which are the border towns of Delhi were the ones that got maximum benefit this year. Says

Amitabh Bhattacharya senior vice-president, TDI , “ It made sense to invest in Kundli. The price which we were offering at Kundli is one-tenth of what one has to pay if you buy a property of similar measurements in upmarket colonies of Delhi like Pitampura and Rohini”. TDI City is 1500 acres integrated township. Another reason for price appreciation in Kundli and Sonepat is the IT park and the proposed HSIDC Industrial Zone coming up. Even DLF is having some land bank in these two zones. The main attraction for Panipat is that it is the centerpiece of Haryana and the town is right on NH 1. On the border of Panipat, Ansal’s are constructing an agro and food SEZ in about 250 acres. SM Jain COO Haryana division in Ansal’s says’ “At the moment we are developing the SEZ, where we plan to have export-oriented food-processing units like rice shellers etc. The construction is going on and because of this SEZ, there would be influx of people from other towns. Hence we have constructed a township in 350 acres.”

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Deck up your home this X’mas
Saurabh Malik

The psychedelic lights of merriment are brightening up your mood like never before. And, the nice sunny weather during the past few days has left you warmed up for revelry. To top it up, the delicate breeze blowing soft across the Christmas trees in the arcades is bringing along with it the whiff of a longing to celebrate the day in panache. So, what are you waiting for?

Folks, set aside religious inclinations and indulge. Do up your home, decorate a tree, exchange presents and feast on a rum cake!

And, if you still haven’t embarked on the road to celebration, don’t just sit there on the comfy sofa scratching your pretty little head with anxious fingers waiting for Santa to bring the gift of ideas. Get moving.

If you love Christmas decorations, don't leave any area undecorated. Here are some quick fixes for you to mend the broken promise of decking up the house you made to everyone around.

The ideas are easy to implement and require a minimum of time and effort.

Considering you don't have much time left do anything extra, look around for things you can arrange and rearrange to let the Yuletide spirit flow.

Take the plunge. Pick up streams of red ribbons and look around for things you can tie them on — chair backs, candlesticks, candle stands, picks in plants, basket handles, stair railings, and even doorknobs.

Put into festive you all your creativity to make bows out of the ribbons. They can be in any colour, as long as they compliment the décor. Use wide ribbons to make loops. If the effort is too much for you, pick up the bows from the markets. They are full of them.

The list of things you can do with ribbons is endless, so remember to buy a roll. And after the celebrations are over, preserve the ribbons. This is just the beginning. Just like you take out of closet apparels that go along with the celebratory spirit, go through the cupboards for pulling out dishes that have a festive flavour. Come guys, look around and you will find dishes with broad floral prints and other such stuff and arrange them around the table to give a ceremonial touch to the celebrations.

You can also keep luscious fruits in a clear glass bowl. Some of the imported fruits of global economy, including Washington Apples and sweet smelling oranges look, and taste, great. Also include a bunch of black grapes. Place an angel-shaped Christmas cake on the table. So many bakers and confectioners in Chandigarh, Ludhiana and even Shimla prepare special cakes for the occasion. 

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TAX TIPS
Agri land as capital asset

Q. In reply to query in The Tribune of Saturday, December 11, 2010, it has been stated by you that "The Govt. has issued a notification which specifies the distance from the Municipal limits in order to a certain whether a particular agricultural land would be treated as a Capital Asset. The taxability of capital gain arising on transfer thereof would depend upon the agricultural land being situated within the prescribed distance."

I shall be thankful to you, sir, if you supply me a copy of above Govt. notification. Alternatively above distances beyond limits of Mohali MC, Panchkula MC, Kalka MC, Pinjore MC may kindly be intimated.

Kindly intimate your Mobile / Telephone No.

Please intimate the No. of above notification and the Shop / Place from where it can become available / can be purchased.

— SL Kukreja

A. The notification issued by the Government of India should be available on the Website of Ministry of Finance (The Department of Revenue). The same is also contained in Volume-I of Direct Taxes Circulars published by Taxman. The notification is of about 45 pages and, therefore, it cannot be published in the Tax Advice columns of the Daily Tribune for constraint of space.

The distances from various Municipalities mentioned in the query, as per the notification are given hereunder:

(a) Mohali - Areas falling within 1 Km of either side of Mohali - Kharar road upto a distance of 6 Km from the Municipal limits on that road.

(b) Panchkula - Areas up to distance of 5 Km from the Municipal limits in all directions.

(c ) Kalka - Areas up to distance of 5 Km from the Municipal limits in all directions.

In case of Pinjore no separate distance has been indicated in the notification. However, it should be reckoned from the distance referred to in respect of Kalka or Ambala. In case of Ambala, Controlment Areas upto distance of 8 Km from the outer limits in all directions and in case of Ambala city, Areas upto distance 8 Km from the Municipal limits and all directions may have to be considered along with the limits specified for Kalka so as to ascertain the coverage in case of Pinjore.

Tracing ancestral land

Q. It has come to my notice that my grandfather had 50 acres of land near Tohana (Haryana ) and I do not know where it's located

My parents/ancestors are no more. The name of my father is Rai Chand Mehta & the name of my mother is Raksha Mehta.

We are eight brothers & sisters & my father always insisted on our education & never took any of his eight children to the village where this land lies. The name(s)/pedigree of my ancestors is as under:

Rai Chand Mehta s/o Shiv Ram Mehta s/o Maiya Mal Mehta s/o Ganesha s/o Dhani Ram s/o Jawala s/o Kirpa Ram. I have collected photocopies of hand written Bahis from Haridwar.

My Que. is:

Can we trace ancestral land?

— Dr VR Mehta

A. You would have to approach the Patwari of the concerned area and the revenue records available with him would enable you to ascertain whereabouts of the land and the name of the persons in the occupation of such land. A perusal of such records would also enable you to ascertain whether any part of the land has been covered by the ceiling law applicable in the erstwhile State of Punjab which included the present State of Haryana. You may have to engage a lawyer dealing in such matters to sort out the affairs.

Seek lawyer’s help

Q. With the reference to The Tribune, dated 11-Dec-2010, page number 5, article "Right of a daughter", I would like to share my problem and hoping that you will guide me in the right direction. I'm also having the same problem like my father owns the agricultural land from his grandfather which is an ancestral land. They are 3 brothers and 2 sisters. Everyone is having their own share of land in their respected names. My father is from Jat Sikh family and my mother is a Hindu. Due to this my father's parents were against their marriage and they don't want that my father and my mother get this land which is in the name of my father. They got married in 1980. Out of their wedlock they are having girl child born on 23-may-1983. They put pressure on my father to get divorced from my mother but my father refused to do it. After that my grandpa forced my dad to marry to another girl who was from same caste and would bring lot of dowry. So in 7-Dec- 1986 my dad got married to this girl. My dad didn't give divorce to my mother and illegally got married to that girl who is now staying in a family at village. After that they played a game. My chacha who is having his own kid rightful registered at Municipal Corporation at the time of his birth. But latterly in paper they showed that it is my dad's son and give him half of the share in the property of my dad. Rest of the property they gave it to my dad's second wife's brother. I'm having all the valid proofs against them. Their conspiracy was to end up my dad's right as well as mine his daughter right. Total property is 13 acre. Now nothing stands in name of my dad. As they said that with your dad consent they had done this but in real my grandpa and chacha who is mastermind of all the conspiracy had done it not my dad. Please look into this matter and guide me as soon as possible.

— Sonal Singh

A. The facts given in the query indicate that it is a case of fraud on your father. There is no alternative for you but to approach the court for the annulment of the actions taken by your grandfather and your uncle. This action would be possible provided your father is prepared to stand up against your grand father and uncle. It would be advisable to get in touch with a civil lawyer specializing in real estate matters who can help you in getting the desired relief.

Deduction claim

Q. Both myself and my wife are working in a multinational company. We intend to purchase a house property in the joint name of myself and my wife. Will it be possible for us to claim deduction in respect of a payment of loan in case we borrow from bank for the purpose of purchasing a house property?

—Vijay Kumar

A. Both of you would be entitled to claim a deduction in respect of the principle amount paid towards the repayment of loan borrowed for the purchase of a house property. The deduction of said amount would be allowable within the overall limit of Rs. one lakh. It would be advisable to make the payment towards the equated monthly installments separately by each one of you from respective bank accounts. This would enable you to avoid any hassles which may arise at the time of allowance of such deduction by the tax department.

MIG flat possession

Q. Improvement trust, Pathankot has allotted MIG flats by charging 25% of value at the time of allotment. Balance 75% is payable in 5 six monthly instalments alongwith 12% annual interest. No date of possession of flats is fixed. Kindly advise whether it is in order to charge interest on instalments prior to handing over possession.

— AKK Kashyap

A. The charge of interest by the Improvement Trust, Pathankot in respect of installment which are payable for the purchase of MIG flat would be part of the contract between you as a purchaser and Improvement Trust as a seller of the flat. It may be added that the facility to make payment in installments cannot be free of cost and, therefore, Improvement Trust is entitled to charge interest for providing such facility. It does not seem to be against the norms of the trade.

House property income

Q. I own a residential house which was let out in the month of June 2010. After deducting the house tax paid and the interest payable on the loan borrowed for the purpose of construction of the house property there would be a loss of about Rs. 1,50,000/- for the financial year 2010-11. My income from salary for the said financial year would be about Rs. 12 lakhs. It is possible to adjust the above loss against my salary income?

— Ashmeet

A. According to provisions of section 71 of the Income-tax Act, 1961 (The Act), in case there is a loss under head of income house property, such loss is allowed to be set off against income from any other head of income. In view thereof you should be able to set off the amount of Rs. 1,50,000/- against your salary income of Rs. 12 lakhs. You would therefore, liable to pay tax on an aggregate amount of Rs. 10,50,000/-.

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REAL talk
‘We aim to give world-class services to senior citizens’
Neeraj Bagga

Jaivir Singh, vice-president, Impact Group of Companies, which has interests in automotive retail, financing and real estate, talks about the present status of projects, especially for aged and future plans of his company.

Schooled at prestigious Doon School in Dehradun, Jaivir had studied marketing and advertising at LCP, London, and also completed a summer course at the London School of Economics in corporate finance and business analysis.

He was recently appointed advisor to the dean, Fuqua School of Business, Duke University, USA. Previously, he was with Fortis Healthcare Limited and is also involved in the Group Companies Social Initiative, Nanhi Chhaan.

Q: For how long your concern has been in real estate?

A. Impact Projects has been in the real estate business for close to 10 years now. Our group, however, will be celebrating 20 years of existence in 2011.

Q. Which are the major projects set up by your company and in which cities so far?

A. Our major projects have been in the city of Amritsar, where we have developed over nine integrated residential colonies in a short span. We have also developed an office complex in Gurgaon, which is now a high-end pathology laboratory as well as acquired land for expanding into Himachal Pradesh.

Our latest offering is a large mixed use development in partnership with SARE - A FDI real estate fund, where we have already launched an apartment complex called Ashberry Homes.

Q.Tell us about your future projects, especially for the aged?

A. Our newest venture is in the Senior Living Arena. Impact Senior Living Estates (ISLE) is a services-enabled community, which will provide world-class services to senior citizens. ISLE has tied up with some of the best names to bring to senior citizens — Fortis Healthcare, Religare Enterprises, G4S and Impact projects are well known in their respective domains and through these partnerships, we will provide best in class services in healthcare, financial services, security and infrastructure. Our first project has already been launched in Amritsar and we expect to welcome residents in the first quarter of 2012, we will be taking the concept to Himachal Pradesh, greater Chandigarh region and the NCR region over the next few years.

Q. What kind of prospects you foresee for the Impact Senior Living Estate (ISLE) at Amritsar?

A. We think that the concept will have many takers, not only from Amritsar, but from places across the country. We also expect that there will be interest for NRIs who want to shift back and are looking for a world-class facility which can provide all the services that are needed for a 'hassle-free' living. We must understand that such communities have not been in India and it will take some time before customers and the public at large, see the advantages of a community which provides all services and support that is required for seniors at that stage. We are also finding that with the evolution of the joint family system and migration as a consequence of work, families are finding it harder to cope. This is a great product for such families who might live in a different city or are moving all the time but want the best for their senior family member.

Q. Give the detail of price/charges and facilities being offered at ISLE Amritsar.

A. A home at ISLE can be accessed by purchasing a 20-year licence. The licence can be had by the resident paying a refundable licence deposit. We offer five sizes of apartments ranging from 625 square feet to 2,300 square feet. Depending on the choice of apartment the licence deposit will range between 10 to 36 lakh. The apartment comes fully furnished with all furniture and appliances such as air conditioners and geysers. Additionally the resident would pay monthly service charges which would vary, based on the various plans available for facility memberships, meals, housekeeping etc.

To serve as an indicator, the minimum spend per person per month can range from Rs 10,000 - Rs 15,000 for access of all basic services such as 24x7 nurse on duty, 24x7 power back up, basic housekeeping and meal plan, maintenance, access to all facilities, security systems etc.

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GRound REALTY
Taking care of hidden structural material
Jagvir Goyal

During the construction of a house, many structural items get hidden under attractive finishes. The quality of these items contributes towards the life and serviceability of the building. Good quality items demand minimum post-construction maintenance and create least botheration for the owner. It is therefore essential to pay special attention to these items. These can be watched during construction stage only. Later on, you never know what is hidden behind attractive finishes. This question intrigues you most whenever you buy a ready built apartment also.

Some instruments have been invented now to detect the quality of these items but these are beyond the reach of a common man. An expert in non-destructive testing of items can use these instruments but it is often not possible for the common man to hire his services. Better is to keep an eye on the hidden items during construction itself and to be sure about their quality. These items are explained here:

Reinforced steel

The structural engineer designs the RCC components of a building after calculating the loads being borne by these components. He decides the quantity, diameter and spacing of steel bars accordingly. He also considers the quality of steel to be the best and able to take full stress. There can be no compromise on any of these items for the structure to be safe and strong.

Once the concrete is poured, the quality of steel, its quantity, diameter and spacing gets covered by concrete and you never know what has been hidden inside the concrete. It is therefore essential to be careful about this most important hidden item. Before pouring of concrete, one should engage an engineer for a day to check the laid steel to be as per design and drawing. Otherwise, an educated man can himself perform this check fairly well.

Foundations

Foundations of a building also get hidden below the ground. It is therefore important to check them also and not to leave them to the building contractor. In foundations, most important is to check whether the width and depth of foundations has been kept as per drawing or not. Reduction in width or depth of foundations reduces their load carrying capacity and such foundations may settle later on, causing appearance of cracks in a building. One should measure the width and depth of each and every excavated trench or pit for wall and column foundations respectively. Next, the width and thickness of all concrete or brick courses should also be checked.

Cement

The ratio of cement to sand or coarse aggregate (bajri) in mortar or concrete is always pre-defined. Mortar can be of ratio, 1: 3 to 1:7 and Concrete can be of varying ratios such as 1:8:16 or 1:5:10 or 1:2:4 etc. It is important to keep a check on the quantity of cement being used in actual. Less than prescribed ratio will produce weaker mortar or concrete. Often, the contractor has a tendency to save cement as it is a costly item. Once the mortar or concrete is prepared, it is not possible for the common man to know the quantity of cement added to it. It is therefore essential to keep an eye on quantity of cement being added, during the preparation of mortar and concrete itself.

RCC Vs RB Slab

As already advised in these columns, it is not wise to lay a Reinforced Brick (RB) roof slab as it proves weak and uneconomical. One should choose an RCC slab only. Once the slab has been laid and the ceiling has been plastered by the builder, it is not possible to judge whether it was a RCC slab or RB slab. This can be checked only by chipping off the plaster. It is therefore better to keep an eye on this item during the laying of slab itself.

Termite treatment

Damp earth is often a source of termite and it is always advisable to do anti-termite treatment of foundation trenches before the laying of foundations. Effectiveness of this treatment depends on the quantity of hydro-chloro-pyrifos used per square meter of area being treated and its right method of application. Unless an eye is kept on this time, there is often a tendency of the contractor to save the material to finish the application quickly. Anti-termite treatment should be got done under personal supervision. Otherwise, you won't know if the treatment has been even carried out or not.

Water Pipes

Water supply pipes, whether of GI or PVC or composite type, are concealed in walls and it is difficult to check their quality at a later stage. Substandard pipes are often a source of leakage and dampness. The quality of water supply pipes should always be ensured before these are hidden in the walls. For example, GI pipes have three classes: A, B and C. C class pipe is the best quality and has a red band at each end of a pipe length. B class is medium quality and has a blue band at each end. A class pipes are of poor quality and carry yellow bands. B and C class pipes are mostly used. However, unless care is taken, the supplier or contractor may use A class pipes and charge for B or C class pipes from you.

Sanitary pipes

PVC or CI pipes are used for sanitary work. These pipes are also concealed in walls and it is not possible to know their quality afterwards. CI pipes are of heavy and light type. For sanitary work, heavy CI pipes, also called HCI pipes are used. Their weight is standardized for each diameter. The weight should always be checked before accepting CI pipes. These should also be checked against any cracks or weep holes. Such pipes create trouble during their use. Similarly, PVC pipes of varying quality are being produced by many manufacturers. These should be checked to be ISI marked, of required diameter, thickness and stiffness. All these points can be checked only before the pipes are hidden in the walls.

Pipe joints

Pipe joints are as important as the pipes themselves. If the joints are not watertight, even good quality pipes lose their purpose. In CI Pipes, the joints are made by filling lead in the joints. Lead is a costly item and there is often a tendency of the plumber to save it as the payment is always made to him for the number of joints. Similarly, joints in PVC pipes are cement solvent joints or heat welded or rubber gasket joints. An eye should be kept on these joints to check that full quantity of jointing material has been used in them and the joints made should be tested to be water tight.

Floor compaction

Non compaction of earth below the floors is often a cause of their settlement, leading to cracks in the floors at their joint with the walls. An eye should be kept on compaction of earth below the floors. It should be watched that the earth is not simply dumped between the walls but is laid in layers of 6 inch thickness and each layer is compacted well by using a heavy compactor. Once the floor is laid, it is not possible to know whether the earth below had been well compacted or not. Poor compaction will become evident after a few months only when the cracks will start appearing along the wall joints. At that moment, the contractor would have wound up and left. So take care. Keep these few points in mind, be vigilant and enjoy a safer, stronger and stable house.

(This column appears fortnightly)

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