An article about " Marketing In Building Materials Industry "

MarketingIn Building Materials Industry

In building trade launching of new product was not frequent as in other sectors e.g. Fast Moving Consumer Goods (FMCG) and Industrial products in the early part of the last century. However, for the past three decades the number of new products being launched is on the increase; because of the technological revolution in raw materials and changein consumer tastes. Some example are UPVC pipes, medium Density, fiber Density, Fiber Boards, RIBCON, copper pipes in plumbing, fibers such as Recron 3S. The importance of adopting innovative marketing techniques is being realized increasingly by the building material manufacturers.

Unfortunately not much literature or Indian cases are available from which some guidance. Most of the marketing literature available in the country has been on FMCG. A Little bit of write-up exists on Industrial products. But in the building materials area it is as good as nothing. The reasons are not difficult to guess. For a long time there existed a number of factors in the country, which did not force the manufacturers and the suppliers to feel the need for marketing. First and the foremost is that at the beginning of last century, there was practically no middle class.

There were a few rich and the rest were poor with low or no purchasing power. The middle class which was 3 percent of the population in 1900 had reached 20% by the year 2000. Most of the materials used in construction were local materials except for steel and cement. Both steel and cement as indigenously manufactured products appeared on the scene around 1920s. Throughout the four decades of independence, steel and cement were in severe shortage.

Hence, there distribution was placed under control. An ordinary consumer had to move form pillar to post to get a few bags of cement or a few bundles of steel. Even for urgent defence requirement one had to beg quotas and releases from controller of cement and joint plant committee. Cement marketing association of India and some bigger companies did issue some advertisements and distributed some technical literature amount professional before 50s. This activity was curtailed after the introduction of controls.

SAIL and TISCO did issue some advertisements but they were more in terms of messages of patriotism and their participation in social issues. In fact, I remember TISCO signature statement in those days were "We also make Steel." As the price was fixed by the Government on considerations other than the cost of production there was little enthusiasm to improve the products. Cement companies did not go beyond manufacture of 33 grade, the technology imported in thirties. Steel had very little of new products.

In fact steel companies concentrated in hiving of activities such as rolling, etc. to small companies to minimize the problem of managing labour and the militant unions. The rest of the building materials manufacturers also followed suit. I remember it was almost impossible to get a decent sanitary fitting other than drab pale yellow earthenware closets and basins.

The local materials suppliers were small players and scientific marketing was beyond their comprehension. In the wake of opening of the Indian market to global players, new challenges will emerge. The question is whether the indigenous players will throw down the gauntlet and fight or throw in the towel and make hasty retreat. The challenges could be import of more advanced manufactured materials or setting up wholly owned subsidiaries,

manufacture more sophisticated materials under license and sell.

In both the cases the loss will be to the local entrepreneurs. Construction though a service sector, is arge market. One ADB estimate projects $ 1 million as the investment requirement of power and highway sector for India and China. In the housing too there is a shortage of 40 million units and if we take that around 15% of it in the category of high and middle income group, housing market for the building materials is large. Then there is repair and renewal market.

Service sector is different from manufacturing, because it demands quality, better service and more unique customerisation (variability to suit a customer) Value addition and unique packaging for one self is what a customer looks for unlike standardised assembly line approach.

In housing the customer has added requirement of long life, durability, ease of maintenance and repair. The customer perception is that house is built forever. Nothing which is incorporated is of the "Use and Throw" variety. On what doctrine shall the building material manufacturer devise his marketing strategy? The oft quoted Marketing Mantra by which the marketing executives swear is the "4 P's" which is attributed to the famous marketing duo Jerry Me Carthy and Phillips Kotler, Viz.,

Product Price Place Promotion (Channel) This Mantra has withstood the advances in marketing science for over 3 decades when it was first enunciated.

Recently a new mantra has gained popularity attributed to Prof. R.Lauterborn of University of California and it goes by the name 4 Cs., Viz., Customer wants (study) Convenience to buy Cost to satisfy Communication Again some studies done in service

sector abroad indicated that a service industry has better chance to prosper if it Fulfills the customer needs fully Technology savvy Develop an active service of value, quality and service of sales and It is self powered.

To me all these later statements are attempts to put old wine in a new bottle. What they bring out is that customer is the king. Find out his requirement, taste, purse and the value for money he expects. Catch his eyes and attention by whatever media he looks at. But my 3 decades of experience in the industry mainly as a user makes me believe that many entrepreneurs miss these gut sense parameters. The first and the foremost is to identify who is your customer.

I shall illustrate with an example borne out of my experience. After the end of control regime on cement, I had suggested to some business executives of the companies, in one of those glittering cocktail parties which they host for architects and engineers that there is vast market outside the usual places like DGS & D, Government Departments, architects and that the market comprises of Individual home builders which has remained under exploited.

But it took us good 3 years to make one company devote a part of the time and budget to this market. Once it tasted success, it is now going whole hog to customer with holding one day awareness programme offering technical advice, lab facility, etc. Now, some of the other companies have also followed suit. Market research in this area comes naturally to MNCs. First Newsflash I heard about Lafarge, a MNC entering the market in East India was the opening of a state of the art display show room for the Indian show room equipped with material necessary to guide him in building a house for himself.

They also came up with a web display. The other important point is the channel and promotion. What is the channel and where is it. Many building material manufacturers think that technical journals are the channels of promotion. Some may make an occasional foray into the newspapers. We always thought the best channels of promotion for the materials are the mastery and humble mason (Plumber, etc). But when we say this, not many are the takers. In the mid seventies a new company in Faridabad, I think came up for the manufacture of UPVC pipes which was to be promoted as cheaper, easier to lay and neater alternative to GI pipes.

This pipe was to be joined with an adhesive. The company, I found, was not clear about the accessories and how they will be joined to the pipe. A top executive contacted me and explained the virtues of the new product and its extensive use abroad. I asked him about the Indian experience in which he was circumspect. I found his main purpose was to find ways and means of getting in to the approved list of the department. I told him that one could look into that aspect if he undertakes to lay the pipe in a few of the residential quarters of a get a fair report from the users. The executive declined to take this suggestion with the plea that they are manufacturers and not a contracting firm.

There ended our meeting. A couple of years later I got adverse reports of cracks and leaks at the joints with the accessories from else where. On investigation it was found that main causes were installation byuntrained plumber, use of improper tools and methods and lack of supervision. The acceptance of UPVC pipe as an alternative was, in my opinion, was delayed by a decade by this misadventure. The company, of course, has vanished. The importance of mason as a channel of communication was experimented by a well known cement company in whose efforts we were associated. Now I am told fortnightly masons meet in many districts have become common with many cement companies vying with one another

and luring them with Gifts. Initially, when it was started we had the dual purpose, namely to educate him and to motivate him. The first set of gifts was a set of good tools. We now go on to another important requirement "technologically savvy". In our service we have seen many instances of failure due to lack of appreciation of this quality. Many Indian manufacturers pay scant respect to research. They believe that the money spent on it is a waste. The amount of money spent on research in India is less than I %; even in big companies; except In some pharmaceuticals. An Indian entrepreneur, basically hailing from trader class, believes in going abroad scouting for products which he thinks has the potential, gets into technical collaboration; to get technical know how; purchases second hand machinery either from him or somewhere else and comes into the market.

Many of these products have to be conditioned to our climate and usage. But that is time consumingand involves expenditure. He would rather experiment and learn at the expense of some hapless customer. In building industry, such customers abound in Government departments. In one instance laminated prefabricated doors and windows were introduced which in the summer heat of the north, warped within months. In another instance a water proofing membrane used in between the basement and superstructure melted and caused slight displacement of the superstructure. The case of ultraviolet rays affecting the Pv C pipes is well known. Plywood doors in which layers are glued with Urea, peeling off after some time is also well known. It pays to have user trials, observing the performance for at least two years and carrying out research for adoption to our needs. If a product does not perform initially it has slim chances of a success at second introduction.

Price: What price the customer is willing to pay is also an important area, which requires proper esearch One has to probe into the

psychological bent of mind of the customer. The price; a customer is willing to pay is derivative of complex concoction of value, status associated with the product, etc. An example is the introduction copper pipe for plumbing, which is fairly common in western countries. But here, in India, it has failed to take off even though it is relatively easy to install and maintain. It is slightly costly but it has the right status to compensate.

There are also some very successful stories in new building products. One of them is the plastic Water storage tanks, introduced by "SYNTEX". The product did not exist in 1960s. Now it has wiped out its competitive rivals like asbestos cement tank, ferro cement tanks, brick tanks, etc.

It was the first to introduce it and has maintained its leadership. In fact, it has become a generic name for the water storage tank. As it boasts, made out of selected materials, subject to stringent quality control to give total reliability; has ushered in a whole new era of convenience and 1005 hygienic water storage. In my opinion, the leadership has not come out of chance; but by a well formulated strategy based on the 4P's stated elsewhere.

Maybe the owner's saw the importance of application of professional management and hired the right type of professionals.

Some of the building materials do not have separate identity but ride on a product that is common in use. To this category I attribute many construction chemicals in the market. They exist as admixtures to concrete, mortar, etc. In fact many of them find their use mainly because of the wrong practices of artisans.

A plasticisizer is recommended to prevent mason using more water than required and weakening the concrete or to facilitate the pumping of concrete. How should they be marketed?

I was on an assignment in the northern part of Karnataka and I found majority of the engineers were not aware of the products and their use. A few who were associated with large constructions like irrigation structures, etc. knew about them. So what strategy a company, which is dealing in chemicals, has to adopt if it wants to familiarize the products and increase its spread? A question that has come in mind.

Summing up, it appears that appreciation of basic principles of marketing, viz. 4Ps has not been properly internalized by many Indian manufacturers and sellers of building products. May be there is a need for greater use of professional management techniques if they have to survivecompetition in a liberalized economy.

An article about " Occupancy Certificate "

Occupancy Certificate

Occupancy Certificate is a very important document. It evidences the completion of the building as per the approved plan and compliance of local laws. Local bodies like city corporations / city municipalities issue occupancy certificates. Without the occupancy certificate, it is difficult to get the water and anitary connection. Financial institutions insists on occupancy certificate to sanction loans.

Problems with respect to issuance of occupancy certificate arise on account of violation of building laws which are increasing day by day. Though the people have spent their hard earned money on the project with a dream of owning a house, they could not occupy the house for want of occupancy certificate. They have to suffer for none of their faults. Builders having good connections escape through various loop holes in the law.

Having invested precious money in such buildings and after waiting for many years to get an occupancy certificate, the purchasers occupy the houses lest they may loose the property. They prefer to occupy the flats without power, water and sewerage connections instead of loosing the property.

In one of the cases the builder unable to obtain the occupancy certificate after a prolonged wait requested his purchasers and handed over the apartments without power, water and sewerage connections. He put the entire blame on revenue authorities and disappeared. The occupants have to find their ownway.

Obtaining the approval of the plans has become just a casual affair and nobody will abide by that. It is just a document to be produced during inspection. During the boom time a builder constructed several houses and flats violating building rules and regulations. He deviated from the approved building plans and went on to construct apartments where he should not have constructed. The civic authorities refused to give occupancy certificate despite best efforts of the builder.

In the mean time, the apartment purchasers on the assumption that things were happening to their satisfaction, performed house- warming ceremonies and took possession of the flats. When they were about to move in, the builder revealed the shocking news that even though he had constructed the apartments and houses to their liking, the authorities were not issuing occupancy certificate on one retext or the other.

Another builder constructed small flats targeting the middle-income group. The authorities, however, refused to issue occupancy certificate because of deviation from the approved plan. In this case, the builder got the plan approved for construction of 4 dwelling units - 2 on the ground floor and 2 on the first floor. However, he did some thing different in gross violation of the approved plan. Instead of constructing 4 dwelling units, he constructed 6 dwelling units. The persons who have invested in the flats are now desperate, as they would lose their money and the flats if the authorities decide to demolish the structure.

It is not that only the flat owners are suffering. A few builders, who have a heart for the investing public, too face problems. One such builder constructed 8 flats in accordance with the building regulations and bye-laws and approved building plan. He has completed five and 3 remains to be completed. The builder has received the full payment from five purchasers other three have backed out. This has put the builder in a difficult situation. For want of funds, three flats remain incomplete.

The authorities will issue occupancy certificate only after completion of the entire construction and the financial institutions are refusing to lend in the absence of occupancy certificate or no objection certificate from the authorities. The net result is that not only the builder is losing money but also the purchasers of the flats, who have to pay interest to the financial institutions. The financiers too face difficulties In getting back loan installments.

The authorities in the scheme of things must be blamed for this state of affairs. The inspecting authorities do not carry out periodic and surprise checks at the construction site. In case of deviation they should take the builder to task in the beginning itself and not at the flag end of the construction. Majority of the builders follows rules and regulations; but a few do not. They dishonor rules and regulations by violating them.

This is a vicious circle, which only the government can break. Government must initiate immediate remedial action to stem the rot. The authorities shall not be very rigid in granting completion certificates. If the builder has deviated a little more than the allowed percentage, the authorities may impose the penalty and regularise the building.

The investors too must share the blame. They do not check the antecedents of the builder and his track record. Before taking possess ion they do not check whether the building is according to the sanctioned plan and the fixtures are according to the agreement. Many do not demand occupancy certificate, parent documents, title deeds, deposit receipts, from the builder.

The purchaser who has not collected all the required documents, has to face various types of problems at a later stage.

An article about " PURGING OF THE SITE "

PURGING OF THE SITE

Before Starting any work, generally, the process of cleaning occupies, the priority. Similarly, before starting construction, the construction site should be thoroughly cleaned and prepared for construction. This is called purging of the site from evil effects.

This process requires a well experienced mason, who is as important as engineer. An in experienced mason with his inefficiency may mar the fortunes of the residents of the proposed house. Many masons have correct understanding of Vaastu, brought by generations. The masons should possess accurate tools to mark the directions and to measure the site. Their important tools, setsquare to fix, correct corners, intermediate directions, and plumb line to ensure perpendicular accuracy of the walls, should be used with diligence. The same tools should be used until the construction is completed, otherwise, there may be differences in areas of the rooms and place in between parallel walls.

Marking directions : First the mason should identify all the eight directions correctly, which is followed by cleaning, and preparation of plot. The directions, south, west, and southwest must be elevated than east, north, and northeast. Any pits, shallow places, wells in weak or unfavourable positions should be filled up. The surface of the site should be levelled with raise in the directions of south, west and southwest. Avoid sites with anthills.

Levelling and reforming, raising in the site must be done before starting construction, but not after, to avoid evil effects of Vaastu. A well or bore well must be sunk in north east, east or north after the foundation is laid and only its water must be used for construction. At least, a sump must be laid in any of these directions. Do not store, the construction materials like bricks, tiles, wood, steel, stones, lime in north, east or northeast use south, west or southwest for storing them.

Startingof work : Work should ensure that the excavation starts from northeast and proceeds towards north west. Repeat the same process from northeast to southeast and from northwest to southwest. This process should end by excavating the southern side from southeast to southwest. The work of foundation must start from southwest to southeast, southwest to northwest; southeast to northeast and end from northwest to northeast. Similar process is required for wall constructions. Importantly, at the end of any day, the walls at southern and western sides should be higher than the walls at north and eastern sides. The temperature in the locality determines the height of walls; prefer high ceiling if the temperature is high and low ceiling if temperature is low.

Pillars : Pillars should square or cylindrical in shape but pillars at southeast must be invariably square in shape. Main entrance should not face the edge of any wall, pillar, or compound wall. Likewise there should not be any tree, well, sump, pit in front of the main door. The northeast corner of the outer walls, compound wall should never be rounded off, where as it is permitted in othercomers. Do not have arches of semicircular shape on gates located on eastern and northern sides, but such semicircular arches are permitted on gates located in south and west.

Flooring : The flooring of the house should laid so as to facilitate the flow of water from southwest to northeast. The level of doors should gradually go on reducing from south to north and west to east. The floor level of the rooms in southwestshould always be higher when compared to other rooms in the house and it shouldbe lowest at northeast. The flooring should be strong and firm avoiding any shallow sound. If you are demolishing any old house, start it from northeast and store reusable items in southern or western parts of the site, since the work if starting from south or West brings ill health to senior male and female member of the house. An experienced mason knows most of these basic principles who plays an important role.

An article about " Construction Company told to compensate consumer "

Construction Company told to compensate consumer

Consumers who are lured by newspaper advertisements in which builders promise free sites, bumper specials, two wheelers, gold and silver articles, often get an unpleasant surprise after they have spent their hard earned money on such schemes. Mr. I. S. Sanaullah became a member of a scheme offered by Classic Land Developers in Mahalakshmi Layout, to buy two sites in their Balaji Township.

He also entered a monthly draw scheme of the firm and won the first prize of a Maruti Omni Van. It was delivered to him in January 1997. But the vehicle was in the name of one Mr. Madhava Rao, the partner of Classic Land Developers and it was hypothecated with Wipro Finance Ltd.,

In 1997, Mr. Sanaullajh was informed by Wi pro Finance Ltd. that Classic Land Developers has not paid 8 installments and the vehicle would be seized and this was also informed to Mr. Madhava Rao. The vehicle was repossessed by Wi pro Finance Ltd. After complaining to the firm, the vehicle was given back to Mr. I.S. Sanaullah but the registration was not transferred in his name! In 1998, Wipro Finance Ltd. informed the complainant again that Classic Land Developers has not paid has not paid six installments and the vehicle was again repossessed by them!

In spite of many reminders, the firm did not provide an alternative vehicle as promised and Mr. Sanaullah finally complained to the Consumer Disputes Redressal Forum, Bangalore Urban District, Classic Land Develop- ers told the forum that since the transaction took place in 1995, the complaint was barred by time and also that the consumer forum had no juris- diction to entertain the complaint.

Forum President M N Shankar Bhat and Member D Nagarathnarnma ruled that it was clear that the Maruthi van was given to the complainant under the bumper draw but it was snatched back from him because of the default on the part of the opposite party in paying the monthly amounts. This was deficiency in service. It ordered Classic Land Developers to pay up Rs.72,OOO to the complainant along with Rs.2,OOO as costs within four weeks of receiving the order.

An article about " REDESIGNING HOMES AS PER VAASTU WITHOUT DEMOLITION "

REDESIGNING HOMES AS PER VAASTU WITHOUT DEMOLITION

Vaastu science encompasses the knowledge of disciplines like geometry, geology, philosophy and astrology.

Assuming we all are aware of basic features of Vaastu I would like to throw light upon certain facts of the subject which are present in our Vedic scriptures and vaastu science itself but have either been neglected to not followed due to lack of deep study. Having gone into depth of the subject with, my copractioners, architects and researchers. I have practically brought into use and concluded certain methods that could be followed instead of demolition or renovation.

Lets us start off with a few scenarios posing a problem for the homes owners. As per the vaastu texts, if north west of the premises is west of my premises is weak or defective or negative, the person will have problems in movements of finished goods. He will have tension anxiety etc, so the related planet to North West being Ketu (the presiding God Ketu is Ganesh) Ganesha Yantra should be installed in the North West.

Similarly if Northeast is weak is weak, starting trouble for commencement of any work or Venture might exist, difficulty in arriving at right decision slow pace of the weak etc.

The governing planet being Buddha (the presiding god of Buddha is Vishnu) Vishnu Yantra should be installed in the North East, as per the different direction.

It is essentially the art of correct placement. Whereby man can place himself, whereby man can place himself in such a manner so as to absorb the maximum benefits of the five elements (Pancha Bhutas) which are Earth, Water, Light (Sun or fire) Air. Sky as well as the influence of the magnetic fields surrounding the earth. The scientific use of elements creates a perfectly balanced environment which ensures enhanced prosperity healer and well being, Scientific use of elements creates a perfectly balanced environment which ensures enhanced prosperity health and well being.

The Scientists are aware of these energy fields that envelope the earth and have done research on the subject to locate the sources of energy. Our scriptures also reveal that an exact and intimate knowledge of the manipulation of these energy fields can be obtained by various symbols, mantras, yantras, forms and shapes.

Goe - biology, a part of modern science explores the science explores the scientific basis to traditional geomantic rules and gives credence to these facts. Every form has energy and the energy level of every symbol or yantra remains the same, irrespective of the material used. The best example is the Swastik and Pyramid which has an energy level of I million Bovis ( a unit of energy).

Marma is another basic feature of Vaastu. Marmas are powerful energy points in a Mandala. Corresponding on the nine points of the body, namely Head, Heart, Shoulders, Knees, Sex. Navel and Thigh on which there should be not structure or fire as it would effect these very points on the body of the users of this space.

These Marmasthanas are determined by interception of Vertical Sunrays and Horizontal rays caused by the movement of the earth (rotation) called as Bio Electro Magnetic grid. As per the observation ofancient vaastu studies and application the center portion of the buildingstructure was kept open.

A deterrent to ancient Vaastu toda is the fast that a time where space is limited and costly certain structures a Vaastu cannot be followed nor make the kind of the structural changes that Vaastu requires in apre-constructed premises.

The latest study and research in Vaastu address these problems hav solutions in the form of Yantra Pyramids, Gems, Vedic Scriptur and Symbols that emit powerful energies equivalent to the nature elements which should be installed at these vital am critical Marmasthanas The governing features Vaastu Shastra that enable to absorb the maximun benefits of the nature thrau positive energies flowing around are:-

•Shape of the plot.

•Geometry of the building.

•Effect of the direction, orientation, inclination.

•Effect of Ultra-violet rays, infrared rays, Bio-Electromagnetic rays, thermal, chemical, electronic rays.

•Surrounding atmosphere and eco structure.

In order to achieve the benefit of these effects one should either demolish and reconstruct as per the law of Vaastu or constructthe building as per Vaastu rules and laws which is impractical in today's lifestyles. Hence the usage of Yantras, Colours, Iconography, Pyramidology, Geomancy, Vedic scriptures and Symbols is very beneficial and convenient.

An article about "Construction Company told to compensate consumer"

Construction Company told to compensate consumer

Consumers who are lured by newspaper advertisements in which builders promise free sites, bumper specials, two wheelers, gold and silver articles, often get an unpleasant surprise after they have spent their hard earned money on such schemes. Mr. I. S. Sanaullah became a member of a scheme offered by Classic Land Developers in Mahalakshmi Layout, to buy two sites in their Balaji Township.

He also entered a monthly draw scheme of the firm and won the first prize of a Maruti Omni Van. It was delivered to him in January 1997. But the vehicle was in the name of one Mr. Madhava Rao, the partner of Classic Land Developers and it was hypothecated with Wipro Finance Ltd.,

In 1997, Mr. Sanaullajh was informed by Wipro Finance Ltd. 

That Classic Land Developers has not paid 8 installments and the vehicle would be seized and this was also informed to Mr. Madhava Rao. The vehicle was repossessed by Wi pro Finance Ltd. After complaining to the firm, the vehicle was given back to Mr. I.S. Sanaullah but the registration was not transferred in his name! In 1998, Wipro Finance Ltd. informed the complainant again that Classic Land Developers has not paid has not paid six installments and the vehicle was again repossessed by them!

In spite of many reminders, the firm did not provide an alternative vehicle as promised and Mr. Sanaullah finally complained to the Consumer Disputes Redressal Forum, Bangalore Urban District, Classic Land Develop- ers told the forum that since the transaction took place in 1995, the complaint was barred by time and also that the consumer forum had no juris-diction to entertain the complaint.

Forum President M N Shankar Bhat and Member D Nagarathnarnma ruled that it was clear that the Maruthi van was given to the complainant under the bumper draw but it was snatched back from him because of the default on the part of the opposite party in paying the monthly amounts. This was deficiency in service. It ordered Classic Land Developers to pay up Rs.72,OOO to the complainant along with Rs.2,OOO as costs within four weeks of receiving the order.

An article about " DOCUMENTS, COMPLUSORILY REGISTERABLE "

DOCUMENTS,COMPLUSORILY REGISTERABLE

All the documents to various transactions need not be registered with Registrar of Assurance. The transfers of Property Act, the Indian Registration Act have made the registration of certain documents compulsory, and others are optional.

Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property value of which is one hundred rupees or more should be registered. If the value of immovable property is less than one hundred rupees, the registration of sale deed is not mandatory. But this is for academic interest only, since, the value of any immovable property will be generally more than one hundred rupees. Even the value is less than one hundred rupees; it is advisable to get the deed registered.

Incase of lease, the Section 107 of Transfer ofProperty Act 1882, prescribes that, lease of immovable property "from year to year" or for a term exceeding one year or reserving a yearly rent must be done only by registration. The phrase from year to year denotes, refers to a continuous lease from year to year, that is, where the landlord have no option to terminate the lease at the end of the year without notice.

Similarly the phrase, "reserving yearly rents" means that the lease has no definite period, but the annual rent is determined. The word means that the lease should run year after year or atleast more than a year.

In general any lease in excess of year and above should be registered. Section 17 of Indian Registration Act 1902 deals with thedocuments, which require registration compulsorily.

1. A document of gift of immovable property. The gift as everybody knows, it is given on consideration of love arid affection and no monetary consideration is involved. So any gift deed irrespective of its value needs registration.

2.All documents non-testamentary

a) Which create interest, right, title in immovable property the value of which is more than one hundred rupees.

b) Which extinguishes (cancels) any right, interest title in the immovable property value of which is Rupees one hundred or more for present or future.

c) Which declare, assign, limit or restrict the interest, title, right in immovable property, value of which is Rupees one hundred or more.

3.All non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions pertaining to right, title, interest in the immovable property.

4. All non-testamentary documents transferring or assigning any decree or order, award of a court, which affect the interest, rights and title in a immovable property the value of which is Rupees one hundred and above.

The documents may create, extinguish, assign, declare, limit or restrict the interest, right title in the immovable property for the present or for future, but if the value of such immovable property is Rupees one hundred or more, they need to be registered,

Testamentary means, relating to the WILL and non-testamentary means documentary not connected to a WILL. As you know, the WILL is a document, which deals who has to succeed to the assets, properties of the person, who writes the WILL (testator) after his death. WILL is not compulsorily registerable.

In short all documents pertaining to a immovable property, if its value exceeds Rupees one hundred, it must be registered.

Indian registration Act empowers the State Government to exempt the registration of any document of lease the period of which does not exceed five years and annual rent does not exceed Rupees fifty.

The important point is what is the effect, if the document, which is compulsorily registerable, is not registered, Section 49 ofIndian registration Act deals with this situation. It states clearly that such non-registered documents do not convey transfer legally valid title to the transferee and such documents are not admitted as evidence of any transaction affecting the property referred in the document. Thus, the purchaser will not get legally valid title by a unregistered sale deed.

However, it also provides an exemption, that such unregistered documents may be received as evidence in a suit for a specific performance under specific relief act or as evidence of past performance of the contract as per Section 53A of transfer of property Act or in any other related transaction, not required to be affected by a registered instrument. It is always advisable to register any document connected with immovable property as it creates a permanent record, which are reflected in encumbrance certificates. Further such registered documents have higher value of evidence than unregistereddocuments.