Mentoassociates.com – Legal Articles

The government of Karnataka has reserved the Bangalore Urban and Bangalore Rural districts for investemtnts in IT and aero space sectors and it is advising the investors especially in manufacturing sectors to go to places in and around Bangalore.

In Bangalore Urban district the government has only 2321 acres of land andin Bangalore Rural it has 3011 acres, mostly in and around Devanahalli.The Karnataka Industrial Area Development Board(KIADB) has acquired about 12,205 acres of land in Ramanagara district(highest among districts) for creating a land bank.

a. For lease of residential property not exceeding 1 year=0.5% of (Average Annual rent +Security deposit),subject to a maximum of Rs 500/-.
b.For lease of commercial/industrial property not exceeding 1 year=0.5% of (Average Annual rent +Security deposit).
c.For lease exceeding 1 year but not exceeding 10 years=1 % of (Average Annual rent +Security deposit).
d.For lease exceeding 10 years but not exceeding 20 years=2 % of (Average Annual rent +Security deposit).
e.For lease exceeding 20 years but not exceeding 30 years=3 % of (Average Annual rent +Security deposit).
f.For lease exceeding 30 years or in perpetuity or for not a definite term =Same duty as conveyance for the total of (average annual rent plus security deposit) or the market value of the  property, whichever is higher.

BEFORE DISTRICT FORUMS
a.For claim upto Rs 1 lakh:Rs 100/-
b.For claim above Rs 1 lakh upto Rs 5 lakhs:Rs 200/-
c.For claim above Rs 5 lakhs upto Rs 10 lakhs:Rs 400/-
d.For claim above Rs 10 lakhs upto Rs 20 lakhs:Rs 500/-

BEFORE STATE COMMISSION:
a.For claim above Rs 20 lakhs upto Rs 50 lakhs:Rs 2000/-
b.For claim above Rs 50 lakhs upto Rs 1 crore:Rs 5000/-

1. What is FIPB?
A. FIPB stands for Foreign Investment Promotion Board. This is a government body which offers a single window clearance for proposals on Foreign Direct Investment in India.

2. What types of foreign investments are approved by FIPB?
A. Investments which are not through the Automatic Route require the approval of FIPB.

3. Are the recommendations of Foreign Investment Promotion Board final?
A. No. Recommendations of Foreign Investment Promotion Board, for foreign investment proposals not more than Rupees Six Hundred Crore will  be considered and approved by the Finance and Company Affairs Minister. Investment proposals beyond Rupees 600 crores would be initially recommended by Foreign Investment Promotion Board and thereafter sent to Cabinet Committee of Economic Affairs for decision.

4. Under which ministry is FIPB placed?
A. FIPB is placed in the Department of Economic affairs under the Ministry of Finance.

5. Which department looks after Foreign Investment Policy?
A. The Foreign Investment Policy is looked after by DIPP (Department of Industrial Policy and Promotion).

6. Where is the office of FIPB?
A. At North Block, New Delhi.

7. What is the normal time frame for an approval from FIPB?
A. Six weeks.