Author: yazdi

Insurer must alert client in case of premium default

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Background: LIC ties up with employers so that employees can opt for insurance coverage under the Salary Savings Scheme. Who is liable if an employee’s premium is not remitted by the employer to LIC?

Case Study: Nagu Gouda worked as assistant teacher at a school under the Karnantaka government’s block education officer (BEO). He took a policy of Rs 1.25 lakh under LIC’s Salary Saving Scheme, which provided that the employer would deduct and remit monthly premium to LIC.

The last premium was remitted in August 2009. Later, Gouda took ill and was on leave without pay. So premium could not be deducted. Gouda died on July 20, 2010. His widow, Seeta, made a claim under the policy, but LIC refused, saying the policy had lapsed due to unpaid premium.

Seeta filed a complaint in the district forum against LIC and the BEO that the employer couldn’t remit premium as Gouda was on leave without pay and Gouda should’ve been told to pay instead of letting the policy lapse. She alleged that failure to intimate Gouda to pay was ‘deficiency in service’.

LIC said Gouda’s premium for last 10 months was not remitted by the BEO or by Gouda. It said the policy had lapsed and the claim was rightly repudiated. LIC sought dismissal of the complaint.

The district forum held LIC and the BEO jointly and severally liable to settle the claim. It ordered payment of the sum assured with accrued bonus and 9% interest.

LIC challenged this order, but its appeal was dismissed by Karnataka State Commission. LIC approached the National Commission and contended that Gouda alone was responsible for failure to remit premium, and that the BEO as employer could not be held liable as Gouda had opted for premature retirement on June 30, 2010. LIC also said that Gouda had given that he would be responsible for consequences of non-payment of premium.

The National Commission observed that LIC and the employer have a duty to inform the employee.

By its order, the National Commission said there was deficiency in service Thus, he ordered holding the employer and LIC jointly liable to settle the claim was upheld.

Conclusion: The employer and LIC have to inform the insured about default in payment of premium under Salary Savings Scheme.

(The author’s e-mail is jehangir.gai.columnist@ outlook.in)

Jehangir B Gai

https://timesofindia.indiatimes.com/mumbai/insurer-must-alert-client-in-case-of-premium-default/articleshow/63163131.cms

Hint of new Aadhaar deadline?

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The Centre on Tuesday assured the Supreme Court that the government was open to extending beyond March 31 the deadline for linking Aadhaar cards with bank accounts and mobile phones.

“We have extended the deadline in the past too. We can do it again. Let’s see how the hearing proceeds. If required, we can do it again,” attorney-general K.K. Venugopal told a five-judge constitution bench.

The bench, headed by Chief Justice of India Dipak Misra, is dealing with a slew of petitions challenging the constitutional validity of the Aadhaar law.

The attorney-general gave the assurance during the closing hours of the day’s hearing in response to pleas made by senior advocates who felt the hearing might extend beyond March 31.

Although not officially stated, there are indications that the deadline could be extended till May 31 or even beyond as the hearing of the case may go on for another month. Thereafter, such benches usually reserve the judgment. The verdict may be pronounced a month later or in July after the summer vacation.

https://www.telegraphindia.com/india/hint-of-new-aadhaar-deadline-213837?ref=hm-ft-stry-2

Policy to scrap 15 yrs old vehicles almost finalised

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India will soon come out with a policy to scrap vehicles that are more than 15 years old, Union Minister Nitin Gadkari said today.

The policy aims at curbing rising vehicular pollution in the country.

“We have almost finalised the scrapping policy for vehicles with NITI Aayog,” the road and transport minister said.

Vehicles completing 15 years or more would be scrapped, the minister said without giving more details.

Gadkari said India is bound to become the hub for the automobile industry and the prices were bound to be cheaper as scrap could be used for the production of auto parts among other things.

“Raw material for vehicles will be cheap … plastic, rubber, aluminium and copper – all generated from scrap will be used for auto parts generation besides other things,” the minister said.

Earlier, the Road, Transport and Highways Ministry had sent a concept note on Voluntary Vehicle Fleet Modernisation Programme (V-VMP) to the Committee of Secretaries on creating an ecosystem for voluntary scrapping and replacement of old polluting vehicles.

Gadkari had earlier said that the PMO is keen on the proposal and once it is implemented, pollution would be checked considerably as 65 per cent of the pollution is caused by heavy vehicles that are more than 15 years old.

As per an earlier proposal, a relief of about Rs 5 lakh was to be provided to people who purchase a new commercial vehicle of about Rs 15 lakh, if they surrender their over 15-year old commercial vehicles.

https://timesofindia.indiatimes.com/business/india-business/policy-to-scrap-15-yrs-old-vehicles-almost-finalised-gadkari/articleshow/62931701.cms

 

CALCULATION OF CONSTRUCTION AREA, CONSIDERING CARPET AREA ACCORDING TO RERA ACT

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Outward No: Ka.15/Circular/RERA/
Carpet Area/3.
Office of the Inspector General
of Registration & Stamp Controller,
Maharashtra State, Pune-1.
Date : 02/01/2018.

Circular

Sub:– Guidelines No. 5 for Mumbai City and Guidelines No.4 For rest of Maharashtra

1.2 ratio has been mentioned in guidelines no.5  for Mumbai City and No.4 for rest of Maharashtra  in respect of calculating built up area from carpet area in the guidelines with annual valuation rate table.

The Maharashtra Real Estate Regulatory. Authority has issued Circular No.4/2017, Dt. 14/6/2017 regarding calculation of carpet area under Section 2(k) of Real Estate (Regulation & Development). With it they have given illustrative sketches regarding which area to be included in carpet and which not to be included. -Accordingly  it is necessary to include area of inner walls of the flat in carpet area. It is mentioned that area  covered by the external walls, and similarly–areas  under services shafts,  exclusive balcony or verandah area and exclusive open terrace area shall not be included. Incidental to said changes individual memorandums and also memorandums from CREDAI regarding making changes in valuation guidelines were received.  Therefore it is necessary.to make changes in the ratio calculating carpet area from built area. Thus, following changes have been made in guidelines no.5 for Mumbai City and guidelines no.4 for rest of Maharashtra.

CarpetArea/Built up Area :-  

  1. The rate mentioned in annual, valuation rate are of built up area. If documents mentioned Carpet area, then valuation should be made by drawing built up area as follows :

Built up area = 1.1 x Carpet area or Carpet area = Built up area / 1.1

However if there is any other mentioned other than Carpet area and if the said area is more than Carpet area x 1.1 then, valuation should be made by considering the area mentioned in the documents. However in the case of open   parking, terrace and balcony, only mentioned area should be considered.

  1. Valuation of closed balcony adjacent to the flats/offices/shops/industrial properties should be made with sales price of the respective use of concerned annual valuation rate table.
  2.  If open balcony adjacent to the Flats/ Offices/ Shops/Industrial use is shown in documents and plans with it , then its.valuation should be made at the rate of 40% of the sale price of respective use shown in annual valuation rate          according to Instruction No.15 for Mumbai and Instruction No. 14 for rest of Maharashtra.
  3. Hereinbefore since area under all walls in the flats sold was not incorporated in carpet area, for the sale/agreement of such resale flats, earlier 1.2 ratio should be used for calculating built up area according to carpet area with balcony area.  However if there is mention of built up area or saleable area except carpet area in the document, then that area should be considered directly. The ratio 1.2 should not be applied to it.

The said Circular shall be came into force from the date of issue.

The copy of the said Circular is available on the web site www.igrmaharashtra.gov.in

(Anil Kavade)

Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune.

Access to Justice and Public Interest Litigation

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The Asiatic Society of Mumbai

takes pleasure in inviting you and your friends to

the 25th Smt. Bansari Sheth Memorial Lecture

by

Mrs. Justice Sujata Manohar

Former Judge, Supreme Court of India

and

Former Chairperson, Board of Trustees of the Society,

on

‘Access to Justice and Public Interest Litigation’

on

Thursday, 8th March, 2018, at 5.30 p.m.

in the Durbar Hall of the Society.

Mr. Justice B.N. Srikrishna

Former Judge, Supreme Court of India

and

Former Chairperson, Board of Trustees of the Society,

 will preside.

Please join us for tea at 5.00 p.m.

         Dr. Meena Vaishampayan                                Prof. Vispi Balaporia

         Chairperson                                                        Hon. Secretary

         Endowment Lectures Committee

The Law of Registration

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THE LAW OF REGISTRATION
(As under Transfer of Property Act-1882 & Registration Act-1908)

SUBHAN BANDEADVOCATE
KADAPA
subhanbande@gmail.com

 

Registration Fee vs. Stamp Duty

  • ‘Registration fee’ is charged by the Government to keep a document in public records.
    • ‘Stamp duty’ is levied by the Government to raise revenue and to recognise a right.
    • The ‘Law of Registration’ in India is explained under…..
      • The Transfer of Property Act-1882
      •  The Registration Act-1908

To read the full details – Click Here

India has 35% chief ministers with criminal cases: ADR

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In India, around 35 per cent chief ministers have criminal cases against them and 81 per cent of the total are crorepatis, according to an ADR report released today.
The Association for Democratic Reforms (ADR) and National Election Watch (NEW) have analysed the self-sworn affidavits of current chief ministers (CMs) in state assemblies and Union territories across the nation.

These were the latest affidavits filed by them prior to contesting the elections.

“Out of the all 31 chief ministers analysed from state assemblies and Union territories, 11 (35 per cent) chief ministers have declared criminal cases against themselves,” the Association for Democratic Reforms (ADR) report noted.

Further, 26 per cent CMs have declared serious criminal cases, including related to murder, attempt to murder, cheating and dishonestly inducing delivery of property, criminal intimidation, among others.

Interestingly, as many as 25 CMs, or 81 per cent, are crorepatis, with two of them having assets to the tune of over Rs 100 crore. The average assets of CMs are worth Rs 16.18 crore.

https://timesofindia.indiatimes.com/india/india-has-35-chief-ministers-with-criminal-cases-adr/articleshow/62889962.cms

RBI cautions bank customers against fake website seeking confidential account info

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The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.

The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.

“It has come to the notice of the Reserve Bank of India that a fake website of the Reserve Bank of India has been created with the URL http://www.indiareserveban.org by some unknown person(s). The layout of the fake website is similar to the original RBI website,” RBI said in a statement on its website.

The official website of the RBI — India’s central bank — is https://www.rbi.org.in  and it holds no other website.

The home page of the fake website also contains a provision for “Bank verification with online account holders” which appears to have been created with a fraudulent intent of obtaining personal and confidential banking details of customers of banks, it added.

“The Reserve Bank of India clarifies that as India’s central bank, it does not hold any accounts for individuals and never asks for personal information such as bank account details, passwords, etc…

“The Reserve Bank cautions members of public that responding online on such websites could result in compromising crucial personal information that may be misused to cause financial and other loss to them,” the banking regulator clarified.

Over past years, RBI has been consistently alerting customers about the fake websites, emails asking to transfer funds or for bank account details in the name of a lottery, fictitious job offers in the name of RBI jobs, etc fraudulently luring and cheating customers and that one should not fall prey to it.

Further, members of public are also cautioned about existence of websites such as www.rbi.org, www.rbi.in etc. These URLs may appear similar to the website of RBI. However, these websites have no affiliation with the Reserve Bank of India. Members of public are advised to be cautious while accessing or when providing any information on such sites.

Beena Parmar
@BeenaParmar

http://www.moneycontrol.com/news/business/beware-rbi-cautions-bank-customers-against-fake-website-seeking-confidential-account-info-2503727.html

Dangers of Statin Drugs

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Dangers of Statin Drugs: What You Haven’t Been Told About Popular Cholesterol-Lowering Medicines

Hypercholesterolemia is the health issue of the 21st century. It is actually an invented disease, a “problem” that emerged when health professionals learned how to measure cholesterol levels in the blood. High cholesterol exhibits no outward signs–unlike other conditions of the blood, such as diabetes or anemia, diseases that manifest telltale symptoms like thirst or weakness–hypercholesterolemia requires the services of a physician to detect its presence. Many people who feel perfectly healthy suffer from high cholesterol–in fact, feeling good is actually a symptom of high cholesterol!

Doctors who treat this new disease must first convince their patients that they are sick and need to take one or more expensive drugs for the rest of their lives, drugs that require regular checkups and blood tests. But such doctors do not work in a vacuum–their efforts to convert healthy people into patients are bolstered by the full weight of the US government, the media and the medical establishment, agencies that have worked in concert to disseminate the cholesterol dogma and convince the population that high cholesterol is the forerunner of heart disease and possibly other diseases as well.

Who suffers from hypercholesterolemia? Peruse the medical literature of 25 or 30 years ago and you’ll get the following answer: any middle-aged man whose cholesterol is over 240 with other risk factors, such as smoking or overweight. After the Cholesterol Consensus Conference in 1984, the parameters changed; anyone (male or female) with cholesterol over 200 could receive the dreaded diagnosis and a prescription for pills. Recently that number has been moved down to 180. If you have suffered from a heart attack, you get to take cholesterol-lowering medicines even if your cholesterol is already very low–after all, you have committed the sin of having a heart attack so your cholesterol must therefore be too high. The penance is a lifetime of cholesterol-lowering medications along with a boring lowfat diet. But why wait until you have a heart attack? Since we all labor under the stigma of original sin, we are all candidates for treatment. Current dogma stipulates cholesterol testing and treatment for young adults and even children.

Click Here to continue reading this interesting article

Respite for co-op housing complexes under GST net

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The Central Government has given a little relief to the co-op housing societies that have an annual income of over Rs 20 lakhs or those that have been collecting monthly maintenance charges of more than Rs 5,000 by relaxing the norms of GST.

The co-op housing societies, having an annual income of over Rs 20 lakh or those collecting monthly charges of more than Rs. 5,000, are required to pay 18 per cent GST on their income from July 1, 2017 onwards, but now effective January 2, 2018, the societies have been collecting monthly charges up to Rs. 7,500 from their members who have been exempted from paying 18 per cent GST. In other words, the GST will be applicable only to those societies collecting monthly charges of more than Rs. 7,500.

The societies’ income includes the money earned while transferring flats in the name of new owner in case of resale of flats, repairs and maintenance charges, parking charges, sinking fund, non-occupancy charges, or simple interest for late payment of dues, which attracts GST, since these charges are collected for supply of services meant for members.

In many instances, transfer fees, that are charged by the societies and paid by incoming and outgoing members when a flat in the society is sold, contribute significantly towards a society’s annual collection. While the model bylaws under the Maharashtra Co-operative Societies Act have placed a limit of Rs 25,000 on transfer fees, in reality the fees run into a lakh or more per transfer. Thus, collections from transfer fees may mean that even societies housing the middle classes also find themselves having a turnover of over the threshold of Rs 20 lakh.

Maintenance charges are collected by co-op housing societies for purposes like providing security, lift upkeep, maintenance of common areas and are typically a reimbursement for expenses incurred.

If total collections of the societies are less than Rs 20 lakh a year, then they are not required to be registered under GST. Consequently, they are not liable to impose GST on taxable services. Smaller societies with lower annual collection (revenue) are out of the GST ambit.

However, in luxury societies having facilities like a club house, gym or swimming pool, monthly maintenance charges are steep, running up to over a lakh. The annual collection of such societies are typically far higher than the Rs 20 lakh threshold. So, GST is levied by such societies.

There are over 90,000 registered cooperative housing societies in Maharashtra, out of which nearly 50,000 cooperative housing societies are in Mumbai, Navi Mumbai, Thane and Mumbai Metropolitan areas alone. Roughly there are 29,000 societies in Mumbai, 6,000 societies in Thane and 5,500 societies in Navi Mumbai and over 2,800 societies in MMR including Panvel.

Some of the societies located in Malabar Hill, Napean Sea Road, Pedder Road in South Mumbai and some of the housing complexes located in suburbs, have a limited member strength, but their maintenance charges per flat are heavy.

Speaking to The Afternoon D&C, Mahendra Mhaske DD-III said that it is mandatory for all such societies to register themselves under GST. Maharashtra Societies Welfare Association (MSWA ) Chairman, Ramesh Prabhu said that earlier the societies were required to pay different type of taxes. But now under this system, the tax structure is expected to be rationalised.

Services provided by government or local authorities to persons other than business entities are exempted from GST. Thus, if property tax or water tax is collected by the CHS on behalf of the BMC from individual flat owners, then GST is not chargeable. Similarly, GST is not chargeable on non-agricultural tax or electricity charges collected under other statutes from individual owners.

By Raju Vernekar

http://www.afternoondc.in/epaper/EpaperPost.aspx?id=214694