Legal Framework for Mall management

Description
retail management discusses the legal framework for building and developing a mall in a city like Mumbai, mall development process, BOMBAY SHOPS & ESTABLISHMENT ACT, 1948, land and construction regulations, insurance and taxation, labor laws

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LEGAL FRAMEWORK FOR MALL MANAGEMENT

LEGAL FRAMEWORK IN MALL MANAGEMENT

ABSTRACT In the process of building a mall, there are a number of regulatory bodies which have laid down various rules and regulations which a builder has to adhere to. Each state has its own set of regulatory bodies governing the rules of the state. The rules and regulations and the legal procedures for malls differ according to the location and area of the proposed mall. The legal framework governing malls of Mumbai is different from those governing malls of Delhi. In this paper we study the legal framework for building and developing a mall in a city like Mumbai. The reason for choosing Mumbai was that Mumbai is one hub of the country which is so well acquainted with the mall culture. Today we see almost every suburb of Mumbai has variety of malls of all sizes and shapes and area.

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LEGAL FRAMEWORK IN MALL MANAGEMENT
MALL DEVELOPMENT PROCESS IN MUMBAI Mall development is a very tedious procedure when it comes to building a mall in a city like Mumbai. Every state in India has its own set of regulatory bodies which govern the legal framework in mall management in India. There are various stages involved in mall development according to Mr. Susil Dungarwal. We look at the stages one by one in the following manner: 1. Market Research Stage Firstly the mall developer conducts a feasibility study based on market research for the project. Various questions are answered through this research. Some of them are as follows: • • • • Is there a need for a mall in Mumbai? Which region of Mumbai requires a mall? What should be the area of the mall? What should be the strategic location for the mall?

2. Mall Conceptualization Stage Once the feasibility study report is positive, the mall conceptualization takes place. The developer either buys a plot in the strategic location or takes it on lease.
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If the plot is in any slum area, MHADA Act is applicable. Permissions from MHADA is required for constructing a mall in the slum area and also the people of slum have to be rehabilitated in a new area within 3 km square feet area or if this is not possible then in most apt location.

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If any trees or other environmental assets are to be demolished for building a mall in Mumbai, BMC permission is required for the same and a nominal fee is charged for the same and also re plantation of the tree in some other site is to be planned and given to BMC for approval.

3. Planning Stage
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LEGAL FRAMEWORK IN MALL MANAGEMENT
At this stage, the design and structure plan of the mall is prepared with the help of an architect. The design of the mall should take care of all the rules and regulations and norms prescribed by BMC and various other regulatory bodies in Mumbai. A detailed report of the project is prepared which will also include various aspects like investments and revenue projections.

4. Registration Stage The developer has to then register the plot in its own name.
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This registration is to be done with BMC. For this registration it is mandatory for a mall developer to submit the whole plan of the mall to BMC which specifically reads about various norms followed by the developer for mall development and management.

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Apart from BMC there are various other regulatory bodies which set it mandatory for a mall developer to procure certain licenses and permissions for starting to build a mall.

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In all there are around 30 major licenses and permissions required to start constructing a mall in any area of Mumbai.

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If the built up area of the mall is more than 20 acres, an ENVIRONMENT IMPACT ASSESSMENT REPORT is to be submitted to Ministry of Environment and Forestry (MoEF) stating that all the environmental norms for air, water, air and noise pollution will duly adhered to while constructing the mall.

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Permission from fire brigade department is also required before starting the construction. There are various fire safety rules that are to be followed while constructing a mall. For example the in every 30 meter area in a mall there has to be an emergency fire exit. All the fire safety equipments have to be visible and accessible to the customers easily in case of emergency. Some of the issues which mall developers face while adhering to these norms are chances of theft of the security equipments as they are easily accessible in any area of the mall.
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LEGAL FRAMEWORK IN MALL MANAGEMENT
5. Pre Construction & Construction Stage At this stage the process of construction starts. But this stage also comes with requirements of lots of permissions from various regulatory bodies.
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Electricity permission is to be taken from MSEB. Permission for garbage, sand etc from BMC. The elevators and lifts also have to be according to the norms of BMC. Parking license is to be taken from BMC for developing a parking area in the mall.

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The parking area norms in Mumbai according to BMC suggest that there should be 1 car parking facility for every 1000 sq ft area of mall.

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Insurance also comes into picture at this stage.
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Insuring people working on site is the main concern at this stage. Training of people working on construction, adhering to safety norms of BMC for construction labor like helmet compulsion.

o Insurance of the mall structure is also done by mall developer. o Normally it is preferred that only 1 insurance company is hired for insurance of the whole project. This is because if there are multiple players insuring different things for 1 project, in case of any unfaithful disasters happening , while claiming back the insured amount there are many loopholes in the insurance regulations so it becomes very difficult to judge whether under which company does the claim to be taken.
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In case of a multiplex theatre construction in a mall, a NO OBJECTION CERTIFICATE is to be obtained from neighbor. A 90 days notice has to be put up on site that if any neighbor has any objection with the mall setting up a multiplex kindly complaint to BMC.

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LEGAL FRAMEWORK IN MALL MANAGEMENT
• NOC is given by BMC after the multiplex is assessed for all sorts of safety norms. • • The multiplex is also assessed by fire dept for all the safety standards. A multiplex gets operational only after 3 months of completion of the construction of multiplex.
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To construct a food court, a food license is to be obtained from BMC along with kitchen license that is to be obtained for the kitchen attached.

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In most of the malls the food court and the multiplex are built in the top floor of the mall. The thought process behind these strategic decisions is that people can travel any where to eat, but not to shop. Also once customers spend 3 hrs in the multiplex they are bound to feel hungry and have food in food court before or after the movie.

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The main reason behind constructing a multiplex on top floor of a mall is that at top floor more FSI is permissible than at other floors.

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For building a multiplex, a food court, a banquet hall, a disco or a Family Entertainment Centre (FEC) in a mall, these areas of the mall should be specially registered under the Shops & Establishments Act, 1948 with BMC.

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While constructing a FEC or a disco in a mall, permission from the Police Dept is also to be taken as these areas will be operational in late night hours.

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And in case of FEC many games are considered equivalent to gambling. In case of a banquet hall, banquet license is required from BMC.

Apart from the above there are many more licenses and permissions required from BMC as and when time permits. The process of obtaining permissions can require a time of as short as 3 months to as long as 12 years. 6. Mall Launching Stage

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Before the mall can be occupied by the customers, the mall developer should obtain Occupation Certificate (OC) from the BMC which states that mall is ready for customers to be occupied.

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BMC officials come for assessment of the property tax applicable to the mall. This assessment is done in the year of completion of construction and similar tax policies are applicable to the mall every consequent year.

7. Marketing and management stage (FIT OUT MODE) At this stage the mall developer approaches various retailers to set up their retail outlets in the mall. These retailers are given space in the mall on either rental basis or on revenue sharing model. Now-a-days almost 80% of the business between retailers and mall developers happens on revenue sharing model wherein instead of paying rent the retailer agrees to share a certain percentage of revenue with the mall developer. • Every retailer has to get itself registered under Shops & Establishments Act, 1948. • • Every retailer insures the interiors of their own retail space in the mall. Various mall promotion events are also a part of this stage.

8. Facility & Hospitality Management Stage This stage requires mall developer to continuously monitor the performance of the mall in terms of its hospitality and safety. Also the mall developer has to pay a number of taxes from time to time while the mall is operating. Major taxes include service tax, entertainment tax in case of food courts, multiplexes, disco, FEC, etc. and the income tax as per the Income Tax Act. The various acts mentioned in the above stages has been now explained in detail in the following doc: BOMBAY SHOPS & ESTABLISHMENT ACT, 1948 Introduction: By repealing the old "Bombay Shops & Establishments Act, 1939", a new enactment known as "The Bombay Shops & Establishments Act, 1948" was brought into force from 11th
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LEGAL FRAMEWORK IN MALL MANAGEMENT
January 1949 on the basis of Mr. Shantilal Shah’s Committee’s Report.

This act is a social piece of legislation of the State Government enacted to prevent sweat labourers of Un-organized sector and to regulate the condition of work and employment and therefore to secure maximum benefits to the employees working in different categories of establishment viz. Shops, Commercial Establishments, residential hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments are mainly protected by the provisions of this act. For the jurisdiction of Greater Mumbai by virtue of the statutory provisions of Section 43 of the said Act subject to the overall supervisions of the State Government through the Commissioner of Labour, Mumbai. The shops & Establishments Department is headed by the Chief Inspector, Shops & Estts. The Chief Inspector, Shops & Establishments is assisted by Four Deputy Chief Inspectors.

To enforce the provisions of the following acts and rules framed as under.
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The Bombay Shops & Establishments Act, 1948. The Minimum Wages Act, 1948. The Payment of Wages Act. 1936. The Workmen’s Compensation Act, 1923. The Industrial Employment (Standing Orders) Act, 1946. The Maternity Benefit Act, 1961. The Child Labour (Prohibition and Regulation) Act, 1986.

Forms and Formalities: Form 'A': This form is prescribed for registration of the Estts under Bombay Shops & Estts. Act, 1948. Registration is made under Sec 7(1)(4) of the said act.
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Form 'B': This is prescribed for the periodical renewal of registration certificate say for one year or three at a time. Renewal is made under sec 7(2A) of the Bombay Shops and Establishments Act.

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Form 'E': This form is prescribed for making any subsequent change in the information already submitted in form 'A'.

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The Registration Certificate is generally valid up to the end of the calendar year for which it is granted under Sec. 7(2A) it is required to get every Registration Certificate renewed for next calendar year fifteen days before the date of expiry of Registration Certificate in hand by submitting prescribed form 'B' along with prescribed renewal fees to the concerned Shop Inspector.

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As per Sec. 7(2B), the renewal of Registration Certificate can be made for 3 calendar years at a time at the option of the employer by paying requisite for that period. In such cases the Registration Certificate shall be valid up to the end of 3rd calendar year including and from the year to which it is granted or renewed as the case may be.

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If the renewal application is not made within the period prescribed but it is made within thirty days after the date of expiry of Registration Certificate or the renewed Registration Certificate as the case may be, then in such cases an additional fee as late fee equal to half of the fee payable for normal renewal of Registration Certificate is charged.

Compliance: During the course of enforcement the inspectors have to visit various establishments and to detect breaches of the provisions of the Act and rules framed there under and to launch prosecutions on defaulters accordingly.
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The major breaches of the provisions of the Act consist of non-registration, nonrenewal, opening of establishment before prescribed hours, closing of establishments later than prescribed hours, exceeding total hours, continuous work without rest interval, spread over, not granting privilege leave, keeping establishment open on weekly closed day, calling employees for work on their weekly offs, employing female employees after prescribed hours, employing child labor, not providing Identity Cards to certain class of employees, not paying wages as per rates prescribed under Minimum Wages Act. etc

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The major of breaches of the provisions of rule are of the nature of procedural lapses. Viz. Not maintaining prescribed register of employment, leave register, visit book, lime washing register, not providing leave book to the employees or not making suitable entries therein, not producing requisite record register, notices for inspection on demand, not displaying name board in Marathi in Devnagari Script etc.

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LEGAL FRAMEWORK IN MALL MANAGEMENT
Maintenance of Registers: Generally the following Registers/ records/ notices etc. are to be kept by the different categories Register of Employment:
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Employers of Shop or Commercial Establishment ---- In prescribed form ‘H’ or ‘J’ as the case may be. Register of leave in form ‘M’ Leave Book in form ‘N’ Notice in form ‘L’ specifying the days of holidays.

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To maintain a Muster-Roll – Cum-Wage Register as lay down under Rule 27(1) of Maharashtra Minimum Wages Rules 1963. Notify to the Sr. Inspector (Shops & Establishments) at the beginning of the every calendar year regarding list of closed day of the respective year. The employer has to provide Identity Cards to the certain class of employees. The Employer has to apply for seeking permission to maintain computerized records The employer also has to obtain permission for ladies working beyond 8.30 p.m. under Sec 33 of the Act. (However as per the notification dated June 2002, Government has waived such conditions with respect to certain class of industries including CALL CENTRES.

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Required Documents for registration:
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Memorandum of Articles of Association/Trust deed. Premises purchase Agreement. List of Directors/Managers. 1st Bank Account opening proof/Bank Account No. details. First Income Tax Assessment order/PAN BMC declaration Date of commencement of business

LAND AND CONSTRUCTION REGULATIONS FOR MALL MANAGEMENT IN MUMBAI

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According to the DC Regulations, malls in Mumbai fall under the U-2 Zone. Following are some of the regulations laid down in the act relating to this zone:
1) A detailed report of Environmental Impact Assessment (EIA) has to be submitted to

Ministry of Environment and Forests for approval in terms of environmental issues of the project. a) The EIA Report should be prepared in accordance with the guidelines issued by the Ministry of Environment and Forest (MoEF), Govt of India from time to time.
2) The builder will have to submit to planning authority of the district or where there is no

planning authority the collector of the district, an Outline Development Proposal (ODP) for approval in principle. Such ODP shall indicate (through Index Map, Sketch Plan and Description) brief particulars of the proposed organised development, such as, a) Location and area of land, including particulars of the surrounding development. b) Existing and proposed access to sites. c) Land uses or activities proposed. d) Proposal for provision of basic infrastructure such as roads, storm water drainage, water supply, waste disposal facilities, power supply, etc. The planning authority or the collector of the district as the case may be shall consider the ODPs in light of the planning proposals or layouts that may have been prepared or may be under preparation for U-2 zone and/or in the light of the ODPs approved, and development permission granted earlier for the development of adjoining lands and other lands in the vicinity. 3) Based on the approved ODP, an application for development permission for building mall shall be made. Such application shall include the following: a) Sub-division of land into plots or layouts of buildings and proposed use of plots or buildings. b) Existing or proposed roads of Regional Plan or Development Plan, Planning Proposals or Layouts, access roads to individual plots and buildings and park arrangements.
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c) Recreational open spaces, spaces reserved for social facilities and amenities such as shopping centres, schools, community centres, health centres, etc. Utility services such as electric sub-station, water tank and pump house, sewage treatment plant, etc. d) Landscape plan of the area. e) Details of the arrangements for provision of water supply including source, treatment and distribution arrangements. f) Details of the arrangements for collection, treatment and disposal of liquid and solid waste. g) Details for arrangements for electricity supply and distribution including provision of street lights. 4) Minimum plot size and frontage: a) Type of development: detached b) Minimum plot area in sq. Metres: 150 c) Minimum width of frontage in metres: 9 5) FLOOR SPACE INDEX (FSI) The maximum permissible F.S.I. for Organised Development in U-2 zone shall be as stated in Table. The total permissible built-up area shall be the product of gross plot area and the FSI stated. In the case of Organised Development the total permissible built-up area as defined in above shall be allowed to be increased if certain part of land is developed in the form of small plots (having area up to 40 Esq.) on terms and conditions stipulated by the Planning Authority

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ENVIRONMENTAL REGULATIONS FOR MALL MANAGEMENT IN MUMBAI Several environmental policy statements have been formulated in the last few decades as a part of the Governments’ approach to integrate environmental and developmental aspects of planning. Following are some of the key policies that have been laid down by the Central Government: • •
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National Forest Policy, 1988; National Conservation Strategy and Policy Statement on Environment and Development, 1992; Policy Statement on Abatement of Pollution, 1992;

National Environment Policy (NEP, 2004) has been drawn up as a response to our National commitment to a clean environment, mandated in the Constitution in Articles 48 A and 51 A (g), strengthened by judicial interpretation of Article 21. The policy is still in draft form and address environmental concerns in all developmental activities. The Acts, Rules and Notifications applicable to environmental aspects of the construction and operational phases of a shopping mall in Mumbai are summarized in the table below and described in the following sections. SUMMARY OF ENVIRONMENTAL LEGISLATION FOR SHOPPING MALL IN MUMBAI LEGISLATION State Regulations AREAS/ACTIVITIES COVERED • Obtain permits and sanction for use of land for shopping mall. • Develop shopping mall in accordance with land use and master plans and sanctioned building plans.
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Environment (Protection) Act, 1986 with Rules and EIA Notification, 1994 (as amended). • • Overall Environment Protection Compliance to environmental (Air, Water, Noise) Standards issued under EPR •
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Prepare EIA / EMP report Obtain Environmental Clearance from MoEF Take part in Environmental Public

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Hearing (EPH) Water (Prevention and Control of Pollution) · Protection of Water Quality Act, 1974 with Rules. · Discharge of sewage from the mall · Obtaining Consent to Establish (NOC) for establishing and Consent to Operate (CTE) for activities causing water pollution from Water Cess Act, 1977 Centre/ State Ground water Regulation DPCC · Paying Water Cess to Local Body for sourcing of domestic water · Conform to restriction for drawing of groundwater · Arrange for recharge through Rainwater Air (Prevention and Control of Pollution) Act, 1981 with Rules. Harvesting Schemes (as applicable) · Protection of Air Quality · Consent to Establish (NOC) for establishing and Consent to Operate (CTE) for activities causing air pollution from DG sets from DPCC · Compliance to National Air Quality Noise Pollution (Regulation and Control) Rules, 2000 Municipal Solid Waste Rules, 2000 Standard · Compliance with Noise Standards in accordance to land use of the area · Management (Collection, Handling, Intermediate Storage) of domestic waste.

URBAN PLANNING AND LANDUSE
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Planned urban development is encouraged by the Central and respective State Governments and have promulgated Urban Town Planning Acts to provide for proper land use zoning for residential, commercial and industrial areas, control on slums and urban sprawl, design and development of civic amenities (such as sewerage and waste disposal) and development of Master Plans for important urban areas in their respective States.

ENVIRONMENTAL CLEARANCE OF DEVELOPMENTAL PROJECTS The requirement involved in the setting up of select development projects (projects with potential to cause significant environmental impacts) in India is through the Environmental Clearance (EC) Process affected on the basis of an Environmental Impact Assessment study. The EC process is mandated by the EIA notification dated 27th January 1994 and is administered by the State level regulatory and government bodies (as the State Pollution Control Board and the Environment Departments) and the Ministry of Environment and Forests at the Central Government level. USAGE OFWATER ANDWATER POLLUTION The use of water resources and the discharge of polluted water (sewerage) are primarily regulated by the Water Cess Act, 1977 and the Water (Prevention and Control of Pollution) Act, 1974. The Water (Prevention and Control of Pollution), Cess Act, 1977 including Rules 1978 and 1991 provides for levy and collection of Cess on water consumed by the local authorities and by persons carrying on certain industries with a view to generate resources for prevention and control of water pollution. It also covers specifications on affixing of meters, furnishing of returns, assessment of Cess, interest payable for delay in payment of Cess and penalties for non-payment of Cess within the specified time. The proposed mall will fall under the Act as they will source water from water supply schemes of Delhi Jal Board. The Water (Prevention and Control of Pollution), Act, 1974 including Rules, 1975 (as amended up to 1988) provides for the prevention and control of water pollution and maintaining or restoring good water quality for any establishment. The Act assigns functions and powers to the CPCB and DPCC for prevention and control of water pollution and all related matters.

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The Environment (Protection) Rules under the EPA also lays down specific standards for quality of water effluents to be discharged into different type of water bodies (sewers, surface water bodies like lakes and rivers, marine discharge). Additionally, the potable water supplied for the proposed project during operation phase should also conform to the National Drinking Water Standard IS: 10500 The Central Ground Water Board (CGWB), the statutory authority set up by the Central Government has restricted the drilling of tube wells and bore wells in certain water scarce areas in the country. Since the Board does not permit the extraction of groundwater resources from the project area also, all other commercial developments in the area have planned their water usage from sources other than ground water. AIR QUALITY The Air (Prevention and Control of Pollution) Act, 1981 including Rules 1982 and 1983 was enacted to prevent, control and reduce air and noise pollution. According to Section 21 of the Act, no person shall establish or operate any activity, which can cause air pollution without obtaining Consent to Establish (CTE) as per the Air Act. The Act also lays down National ENT air quality standards for common pollutants like Suspended Particulate Matter (SPM), Sulphur dioxide (SO2), Oxides of Nitrogen (NOx), Carbon monoxide (CO) and Lead (Pb) with the intent of managing air quality for different category of areas (residential, industrial and sensitive). The EPR also specifies source emission standards determined on the basis of the impact of pollutants on human health, vegetation and property for activities that can pollute the air. The DPCCs, on a case to case basis, can also make the emission standards more stringent on the considerations of the carrying capacity of a specific air shed and the existing pollution levels of ENT air quality. It may be noted that normally the CTE for the Air and Water Act is provided in the form of a No Objection Certificate (NOC) to the project proponent when the project falls under the 32 categories of activities covered by the EIA notification. The NOC is generally provided after the submission of the EIA report and holding of the Public Hearing. NOISE LEVEL With the objective of regulating the noise level in the environment, the Central Government has notified the Noise Pollution (Regulation and Control) Rules, dated 26th December 1989 and amended in February 14, 2000 under the EPA. The EPR also lays down equipment specific noise emission standards for DG Sets. Specific standards for control of noise from
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DG sets and measures to be taken for reduction of noise by using acoustic enclosures, acoustic treatment of rooms or exhaust muffler have also been specified through the Environment (Protection) Second Amendment Rules, 2002 notified through notification GSR 371 (E) on 17th May, 2002.

SOLID AND OTHER WASTE MANAGEMENT During the construction and operational phase of the project, collection and handling of domestic solid waste should be done as per provisions of the Municipal Solid Waste Rules, 2000. The philosophy of solid waste management at the shopping mall should be to encourage the four R’s of waste i.e. waste reduction, reuse, recycling, and recovery (materials & energy). The rules require facilities to classify wastes into categories, manage them as per the prescribed guidelines and obtain prior authorization from the DPCC for handling, treatment, storage and disposal of Wastes. The shopping mall project should have a potential to generate other waste besides solid waste during its construction and operational phases and such waste generation should be properly monitored and managed. The following kinds of waste may be generated from the construction phase of the project: ? Spent oil and lubricants from construction equipments; ? Spent oil and lubricants from DG sets; ? Paint residues during the painting of the buildings; During the operational phase management of the solid waste should focus on the Segregation/Sorting, Storage at source and Collection of the wastes. Separate bins are planned to be maintained for various categories of wastes like Biodegradable, NonBiodegradable, and Paper/Plastics etc. This will reduce in lesser reliance on land filling. Regular public awareness meetings will be conducted to involve the occupants and the employees to ensure proper segregation, storage, collection, treatment and disposal of waste. ENVIRONMENTAL MONITORING The purpose of environmental monitoring is to evaluate the effectiveness of implementation of Environmental Management Plan (EMP) by periodically monitoring the important

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environmental parameters within the impact area, so that any adverse affects are detected and timely action can be taken. A suggested monitoring protocol based on the predicted impacts is given in the table: SUGGESTED MONITORING PROGRAM FOR A MALL IN MUMBAI SR.NO 1 TYPE Stack emmission 2 monitoring Groundwater (Potability testing) 3 Treated sewage water quality STP LOCATION PARAMETERS PERIOD AND FREQUENCY Stack of any one SO2, NOx, SPM, Quarterly during operating DG set Project Site CO Drinking water IS 10500. Parameters for horticulture use BOD, pH, S.S, Coliforms AWARENESS AND TRAINING Training and human resource development is an important link to achieve sustainable operation of the facility and environmental management. For successful functioning of the project, relevant EMP’s should be communicated to the following groups of people: Employees Employees must be made aware of the importance of waste segregation and storage, water and energy conservation. This awareness can be provided through leaflets and periodic in house meetings. They should be informed of their responsibilities for successful operation of various environmental management schemes inside the premises. Site Staff Relevant personnel at site must be trained for the following:
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operational phase Pre-monsoon Post-monsoon. As per vendor Specifications

parameters as per and

Collection, Segregation and Storage of the solid and waste generated during oil change. Operation and maintenance of Sewage Treatment Plant and reclamation system Requirements of the Emergency Response Plan in case of an emergency.
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• • • Techniques for waste minimization, water conservation and energy conservation Applicable environmental, health and safety regulations and compliance requirements for the same. Functioning of the Environmental Management System including environmental Monitoring, reporting and documentation needs. RECORD KEEPING AND REPORTING Record keeping and reporting of performance is an important management tool for ensuring sustainable operation of a Mall. Records should be maintained for regulatory, monitoring and operational issues. Typical record keeping requirements for the Mall site is summarized in the following table: RECORD KEEPING REQUIREMENTS Parameters Solid waste handling and disposal Sewage treatment Particulars · Daily quantity of waste generated and sent for disposal · Daily quantity of raw and treated sewage · Quantity and point of usage of treated wastewater Regulatory Licenses (Environmental) · Treated wastewater quality · Environmental Permits / Consents from DPCC / MOEF Monitoring and survey Other · Copy of Waste manifests as per requirement · Records of all monitoring carried out as per the finalized monitoring protocol. · Log book of compliance · Employee environmental, health and safety records · Equipment inspection and calibration records, where applicable · Vehicle maintenance and inspection records ENVIRONMENTAL AUDITS AND CORRECTIVE ACTION PLANS To assess whether the implemented EMP is adequate, the Mall Management Committee should conduct periodic environmental audits. These audits should be followed by Corrective Action Plans (CAP) to correct various issues identified during the audits.
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EMERGENCY RESPONSE PLAN The overall objective of an emergency response plan (ERP) is to make use of the combined resources at the site and outside services to achieve the following: 1. To localize the emergency and if possible eliminate it; 2. To minimize the effects of the accident on people and property; 3. Effect of the rescue and medical treatment of casualties; 4. Safeguard other people; 5. Evacuate people to safe areas; 6. Informing and collaborating with statutory authorities; 7. Initially contain and ultimately bring the incident under control; 8. Preserve relevant records and equipment for the subsequent enquiry into the cause and circumstances of the emergency; 9. Investigating and taking steps to prevent reoccurrence FORM FOR SUBMISSION OF INFORMATION FOR ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL SCREENING OF THE DEVELOPMENT PROPOSAL 1. Name and Address of the person proposing development. 2. Particulars of the proposed development; a) Brief description, b) Justification or need for the proposed development. c) Objective, d) Size and Magnitude, e) Cost f) Present status, g) Time schedule for completion of development. 3. Employment; a) During development stage, b) During operational stage. 4. Location of the proposed development; a) Revenue Survey No./Hissa No. b) Name of the village/tehsil/district.
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(7x12 extract and village map showing location essential) 5. Land Area; a) Existing (in the case of expansion), b) Proposed. 6. Physical Setting. a) Natural and man-made features (map essential), b) Topography indicating gradient aspect and altitude. (Map essential), c) Soil type and texture (map optional). d) Flood prone areas of the site. (Map essential). 7. Land Uses. a) Existing land use of the site. (Area statement and map at larger scale essential) b) Existing land use covering an area of 10 km. radius around the site. (Map at smaller scale essential). c) Proposed Development. (Area statement and map at larger scale essential). d) Proposed Development showing proposed accesses, land uses of the surrounding area. (Map at smaller scale essential). 8. Ecologically Sensitive Areas: a) Proximity to National Park, Wild Life Sanctuary, nature reserves, mangrove forests and reserved, protected or other forests, biosphere reserve, swamp and wetlands (indicate distance from the site and identify on map). b) Does the development involve any forest land? c) Proposals for compensatory afforestation plan, d) Does the proposed development involve reclamation of wetlands? e) Is the site situated within catchment area of water reservoir? f) Is the site situated within existing or potential command area of irrigation project? 9. Air a) Ambient area quality data at the site (for SO2, NO2, SPM), b) Major air pollution sources within 10 km. radius from the site. c) Nature and concentration of likely emissions from the proposed development. d) Pollution abatement measures proposed.

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10. Water a) Total daily water requirement. b) Source of water supply with details of competing users. c) If ground water is used at source, details of quality and quantity available and present extraction. d) Quantity of waste water expected. e) Method of treatment and disposal of waste water proposed. f) Present quality of water in receiving bodies. 11. Solid Waste a) Nature and quantity of solid waste expected. b) Nature and quantity of any toxic and hazardous waste. c) Method of collection, transport and disposal of solid waste proposed. 12. Noise and Vibrations a) Ambient noise level. b) Noise and vibration levels expected during development phase and thereafter. c) Source of noise and vibrations. d) Noise and vibration abatement measures proposed. 13. Risk and Disaster a) Does the development involve any hazardous process? b) Does the development involve any storage or transportation to and from the site of any toxic or hazardous material? c) Assessment of risk for (a) and (b) above d) Details of Disaster Management Plan. 14. Rehabilitation a) Does the proposed development involve rehabilitation of local population? b) Details of rehabilitation plan, if any. INSURANCE AND TAXATION ISSUES IN MALL MANAGEMENT IN MUMBAI INSURANCE The IRDA Act has established the Insurance Regulatory and Development Authority (“IRDA” or “Authority”) as a statutory regulator to regulate and promote the insurance industry in India and t o protect the interests of holders of insurance policies. The IRD Act

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LEGAL FRAMEWORK IN MALL MANAGEMENT
also carried out a series of amendments to the Act of 1938 and conferred the powers of the Controller of Insurance on t he IRDA. The Tariff Advisory Committee (“Advisory Committee”) is a body corporate, which controls and regulates the rates, advantages, terms and conditions offered by insurers in the general insurance business. The Advisory Committee has the authority to require any insurer to supply such information or statements necessary for discharge of its functions. Types of Insurance Policies There are a number of insurance policy types available to cover losses arising from operations related to the construction of a building. Some particular forms and inclusions or exclusions are more common to either residential or commercial construction projects. Property Insurance: ‘Course of Construction’ is a specifically designed form of property insurance. It provides fire insurance, including extended coverage for risks such as windstorm and optional coverage for events such as floods and earthquakes, for losses that might arise as a result of operations related to building construction. It can also prescribe exclusions that specifically relate to those operations. Most Builders Risk policies are issued based on ‘broad form’ coverage. During construction, this form provides ‘all-risk’ coverage for fire and vandalism, as well as ‘in transit’ coverage. If flood or earthquake coverage is desired, these usually must be added by endorsement for a specific premium. Liability Insurance: ‘General Liability’ and ‘Comprehensive General Liability’ are the two most common forms of liability insurance. Most builders purchase a CGL policy, which includes coverage for any bodily injury or property damage occurring as a result of their products, operations and completed operations. CGL policies are so broad that they can include coverage for other related exposures for the
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LEGAL FRAMEWORK IN MALL MANAGEMENT
insured operations, including coverage for the owners and contractors, personal injury, medical payments, broad form property damage, as well as coverage of ‘Contingent Employers Liability’ (also called ‘Stop Gap’ insurance). ‘Environment Impairment Liability’ (EIL) is a form of liability insurance that is becoming more common. Provides coverage for the ‘Pollution Liability’ imposed on the Contractor/ Owner due to any pollution of the environment that occurs as a result of the construction operations. Examples include: seepage of chemicals produced or used during the construction operations into an adjacent underground area or body of water such as a lake, pond or stream; and, release of chemicals into the air as a result of a major fire at the construction site. The EIL policy normally provides coverage for ‘Sudden & Accidental’ pollution, including onsite third-party bodily injury and property damage, as well as off-site third-party bodily injury, property damage and cleanup costs, arising from pollution conditions on, or emanating from, the covered construction site.

‘Wrap-up Liability’ It is intended for large construction projects, to provide general liability coverage for the general contractor plus all sub-contractors under one policy for a specific project. Examples of additional risks of losses for which an Insured may want to consider coverage are: • Business interruption – loss of revenue/income as a result of delay in completing the project due to a loss caused by a covered peril; this is often added to the property policy by endorsement. • Crime – also referred to as “3-D”, which stands for loss of money due to “disappearance, destruction and dishonesty”.
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LEGAL FRAMEWORK IN MALL MANAGEMENT
• Delay penalty – penalty levied due to delay in meeting the project deadlines; coverage for this is called a “Surety” policy. • Fraud or deceit – loss due to fraudulent induction of an Insured to part with covered property. • Contract penalty – penalty for non-completion of the contract assessed against the Insured; however, an Insured’s inability to complete the contract according to its terms must be the direct result of a loss by a covered peril. • Testing – loss to a building caused by a covered peril that results from testing of materials, machinery, or equipment that will become a permanent part of the building or structure (including startup, performance, stress, pressure or overload testing). • Property in transit – damage to or loss of materials/ machinery used in construction that during the project might be in transit or in storage off-site. • Soft costs – additional expenses incurred by an Insured when construction is delayed by a loss caused by a covered peril, e.g. additional attorney’s or accountant’s fees, additional interest payments on construction loans, additional architectural or engineering fees, additional insurance premiums. FIRE FIGHTING SYSTEM As per the National building code, the complex falls under high occupancy category of group E. Fire fighting mechanism for the shopping mall comprises of six components i) Fire detection system ii) Fire fighting system iii) Fire Hydrant System (iv) Fire Department Connection v) Sprinkler System and vi) Portable Fire Extinguishers.

TAXATION Taxation of real estate development transactions is a very complex topic. Income tax and Service tax issues concerning both the landowner and developer are: INCOME TAX ISSUES CONCERNING LANDOWNER It can be categorized under the following heads
1

To be taxed as business income or capital gain
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LEGAL FRAMEWORK IN MALL MANAGEMENT
2 3 4

Point of accrual income Amount of income Whether any exemptions are available or not.

1) To be taxed as business income or capital gain This depends on the nature of transaction undertaken. In most of the cases - resulting gain would be treated as Long Term Capital Gain. However, if the activity undertaken is in the nature of a trade, it would be treated as a business transaction and accordingly the business income would be calculated

2) Point of accrual of income At what point of time the transfer is complete as far as the landowner is concerned. The various points of time which are to be considered are:
a. Date of execution of the Development Agreement b. Date of handing over the possession of land to the developer c. The date of handing over the possession of land to the developer together with a GPA

authorizing the developer to transfer his share of the property.
d. The date on which the first sale deed is executed for undivided share in land for the

developer’s share. e. The date on which the first sale deed is executed for undivided share in land for the landowner’s share. f. The date on which the building is completed and share of the landowner is handed over. 3) Amount of income In a development agreement what the Landowner is transferring is a portion of his land and the consideration he is getting is in the form of built up area on the portion of land retained by him.
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LEGAL FRAMEWORK IN MALL MANAGEMENT

If the landowner has sold his share of the built up area even before the construction is completed the consideration received on such sale would form part of the consideration for the original transfer of land. If he has sold part of his share of built up area this will give rise to some complications in arriving at the total sale consideration. Because in such a case it would be the sum of consideration received on sale and the cost of construction of the unsold portion. If the landowner sells his portion of the built up area just after construction, this will give rise to one more capital gain transaction. 4) Whether any exemptions are available or not If the land or property has been held for more than 3 years, the development agreement transaction will result in a long term gain and the landowner can claim benefits U/s 54, 54 EC and 54F. Property purchased in joint names would also qualify for exemption and the land owner can claim the benifits.

INCOME TAX ISSUES CONCERNING THE DEVELOPER.

The following issues needs to be discussed as far as the Developer is concerned.
a. The year of taxability of income

b. Computation of income
c. Deductions available (if any)

A) Year of taxability of income The question here is as to when income becomes taxable? Is it the year of completion of the project? Or should the income be offered on a year to year basis. If the income is to be
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LEGAL FRAMEWORK IN MALL MANAGEMENT
offered on a year to year basis should it be computed on percentage of completion method or should it be estimated randomly. •
•

For the purposes of income tax income has to be determined on a year to year basis. There can be exceptions if the department has been accepting the ‘completed contract method’ as well.

Accounting Standard AS-7, which applies to construction contracts are not to be followed while computing the income of a real estate developer. Because AS-7 applies to accounting for construction contracts in the financial statements of contractors and not to the enterprises that are constructing properties on their own. Therefore revenue recognition and valuation of inventories should be in accordance with AS-9 and AS2 respectively. In simple words AS–7 would apply when contract is being executed on behalf of a third party.

B) Computation of Income What income should be offered to tax by a developer? If the profits are to be offered to tax on a year to year basis profits have to be estimated till the project is not complete. Income can be estimated as a percentage of work completed or as a percentage of advances received. The department has been accepting 8 % profit on gross receipts or work completed when the project is incomplete. Balance of the profit has to be offered in the year of completion. For partnership firms, out of the 8 % profits, interest & remuneration to partners can be deducted to arrive at taxable income of the firm. ISSUES RELATING TO SERVICE TAX 1) Threshold Exemption

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LEGAL FRAMEWORK IN MALL MANAGEMENT
Threshold exemption on the aggregate value of taxable services provided during a financial year is available to a service provider up to a maximum of Rs 10 Lakhs as per the financial year 2008-09 onwards. Exemption linked to preceding year’s turnover: Exemption is available only if the aggregate value of taxable services provided has not exceeded the limit in the preceding financial year. Tax payable for turnover of Rs 10 lakhs and above in the first year: Service tax is payable only on the turnover exceeding Rs 10 lakhs and not on the entire amount. E.g. In the first year of exemption, if the turnover is Rs 10.40 Lakhs, service tax is payable only on Rs 40,000/-. However, from the next year tax is payable on the entire turnover. It would be worthwhile to note here that if any service tax is collected which is not required to be collected or if any excess service tax is collected, the same has to be immediately paid into the account of the Central Govt. In arriving at the limit of Rs 10 Lakhs only taxable services are to be counted. Thus if a person has turnover of Rs 5 lakhs for non-taxable service and a turnover of Rs 6 lakhs for taxable service, he can still enjoy tax exemption. New services brought into tax net during the year If a service is made taxable from a date in the middle of the year (say from July 1) the turnover of the service provider up to the date of introduction of service would not be counted as part of the Rs 10 lakhs threshold limit. Construction Services Service Tax @ 10 % plus education cess @ 3 % of service tax (total 10.30 % of the value of taxable service) is applicable to the following two categories of construction services: 1 Commercial or Industrial construction services 2 Construction of complex service 1 Commercial or Industrial construction services
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LEGAL FRAMEWORK IN MALL MANAGEMENT

(a) Any construction of a new building or a civil structure (b) Construction of pipeline or conduit (c) Completion and finishing services such as glazing, plastering, painting, floor and

wall tiling, wall covering and wall papering, metal and wood joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or
(d) Repair, alteration, renovation or restoration of or similar services in relation to,

building or civil structure, pipeline or conduit, which is (i) (ii) (iii) used, or to be used, primarily for; or occupied, or to be occupied, primarily with; or engaged, or to be engaged, primarily in,

Commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams’. Who is covered under this head: Persons engaged in constructing shopping malls, commercial complexes, multiplexes etc. Persons engaged in repairing, altering or restoring of any building or civil structure. Persons engaged in construction of hoardings, construction of pipelines or conduit. Persons engaged in completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing etc. Who is not covered under this head :
-

Persons engaged in constructing the building or civil structure for self-use or for renting out, or for sale Persons engaged in construction of roads, bridges, airports, railways, transport terminals, tunnels and dams.
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LEGAL FRAMEWORK IN MALL MANAGEMENT
This means that if a builder makes a sale deed for the commercial spaces which he is building, there will be no service tax. However, if sale deeds are made for undivided share in land or semi finished structures and then ‘Agreement of construction’ is made for constructing or finishing the structure it will attract service tax. Abatement of Tax Any service provider liable under this head can opt for availing abatement to the extent of 67 % of the gross receipts and pay tax only on the balance 33 % of the gross receipts. Other conditions like not availing Cenvat credit on inputs or capital goods or on input services are applicable. LABOR LAWS IN MALL MANAGEMENT IN MUMBAI Labor regulations for India’s retail sector fall under the jurisdiction of the state governments and are contained in the Shops and Establishments Act (SEA). The SEA is a state legislation and contains various laws relating to working conditions of the employees. The main provisions of the Act include the following: • • • • • • • • • • • • • • • Compulsory registration of shop/establishment within thirty days of commencement of work Minimum wages Regulation of hours of work per day and week Guidelines for spread-over Rest interval Opening and closing hours Closed days National and religious holidays Overtime work Rules for employment of children, young persons and women Rules for annual leave Maternity leave Sickness and casual leave Rules for employment and termination of service Obligations of employers
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LEGAL FRAMEWORK IN MALL MANAGEMENT
• • Obligations of employees Communications of closure of the establishment within 15 days from the closing of the establishment In the below table shows the level of minimum wages prescribed in the various state SEAs. The table reveals that minimum wages in retailing are not too different from the ones in the manufacturing sectors. To get a better idea of what specific provisions in the SEA entail, we list some of these provisions for the state of Maharashtra, the most prosperous state and the retailing hub of India. Retail shops in the state are covered by the Bombay Shops & Establishments Act of 1948. The Act was established in 1937 but underwent substantial changes in 1948 and some modifications thereafter. Currently, the Act stipulates that under normal circumstances an employee cannot be required or allowed to work for more than nine hours in a day and 48 hours in a week (Section 14), any work beyond the stipulated working hours (overtime work) must be paid at double the normal wage rate of the employee, an employee must be allowed an interval of rest of at least one hour after five hours of continuous work (Section 15) and his spread-over cannot exceed eleven hours in a day (Subsections 16 & 17), every shop must remain closed on one day of the week and no deduction of wages is to be made for the closing day (Section 18), women are not allowed to work either as employees or otherwise after 9:30 p.m. (Sub-sections 33 & 34A), young people in the age group of 15-17 years are not allowed to work after 7 p.m. and for more than six hours in a single day (Sections 33, 34 & 34A), an employee is entitled to annual leave with pay for 21 days for 240 days of work (Sub-sections 35-37) and all provisions of the Maternity Benefit Act of 1961 and Workmen’s Compensation Act of 1923 apply to every shop covered by the Act. However, according to a World Bank study, the enforcement of labor law in Indian retail is very poor. This is mainly because there is no regulatory body separately set up for the retail sector. Also there is a wide difference between the unwritten employment laws in organized as well as unorganized retail. Traditionally retail in India has served as a source of employment for relatively low-income groups seeking livelihood with minimal education or skill. Retail can absorb this category of labour since it requires relatively less skills. Hence it absorbs a huge section of Indian population who cannot seek employment elsewhere in the economy.

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LEGAL FRAMEWORK IN MALL MANAGEMENT
Moreover, it also offers scope for self-employment. In India there are a huge proportion of street vendors and hand cart pullers who capture a considerable share of retail business. Apart from them, illegal roadside stalls and mom-pop stores dominate in the neighborhood, offering employment mostly to young less-educated and low skilled labour hailing from low-income group families in dire need of employment. However, with the emergence of organized retailing nature of employment has completely changed in retail. Managed by corporate retail chains, the employment status also matches other corporate sector employment. Hence, the skill expectations and performance levels are also much higher. This sector looks for skilled labour. The demands from the prospective employee are much higher. Hence naturally it is not easy to gain employment as it has been in the traditional forms of retailing. The entire conceptualization of labour is very different from that in unorganized retailing. Conceptualization of labour In the organized sector retail, the overall expectation for skill is quite high as compared to its unorganized counterpart. The prospective employee is expected to be a ‘skilled labour’. Skills includes: ability to interact nicely with customers: Understand customer needs and tastes and help him/her select an appropriate product and product knowledge. The employers look for these skills (at least some of these) in the prospective employee. Hence, mostly they employ people having past work experience in the retail (preferably organized). In case of unorganized retail on the other hand, skill expectations are minimal. The labour is expected to learn their duties informally while on job after recruitment. In the organized sector retailing high importance is attached to adhering of certain levels of behavioral norms/etiquettes while dealing with the customers. There is a strict code of conduct conveyed to the employees wherein they are expected to be extremely polite and indulge in a friendly interaction with customers. Etiquettes such a greeting the customer etc are specifically taught and any form of misconduct from the employee is dealt with serious action. In case of unorganized sector, instructions to deal with customers include politeness and patience. However, apart from these basic norms to deal with customers, no extra lessons for manners or behavioral standards are set out for them. Importance is also attached to the present ability of the employees. The entire idea of grooming and present ability of the sales staff and other employees of the store is very unique to organized retail, something entirely missing in case of traditional forms of retailing. They employers are very particular about this aspect. The
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LEGAL FRAMEWORK IN MALL MANAGEMENT
instructions concerning this include: Clean uniform (provided by the company) preferably formal dress, polished shoes and overall tidiness concerning dress and appearance (particularly hair). The conceptualization of labour in the organized retailing has resemblance to the standards adopted for the corporate sector employees since these are controlled and managed by the corporate houses. Hence proper grooming, present ability, soft communication and marketability skills etc are extremely important for the employees. Management practices and mechanism of handling labour In organized retailing, labour is managed and controlled by the corporate office of each retail store. These corporate offices have hierarchical managerial structures which govern the entire operations of the retail chain right from procuring of raw materials to sale of the product in the front-end retail outlets. In the unorganized sector, on the other hand, mostly family members own and manage the particular store. In very few cases, managers are employed to manage business or look after the store, which is usually done by the owner himself. Surveillance mostly includes monitoring and observing the performance of the employers through camera. Most of the stores have cameras which are directly linked to the corporate head office, from where instructions come regularly. In traditional retail stores, surveillance is direct since in most of the cases the owner himself is present in person during the store hours. In organized sector retail there is an attempt to implement modern management practices to deal with labour, whereby they are treated in a friendly manner. At least, there is an aura of friendliness that is attempted to be created by the managers even while instructing the labour. The employees say, “We stay like a family here. This is our second home.” Mostly, they work as a team. Informal relations are also sought to be fostered through celebrating together in informal parties and so on. In the unorganized sector, the relation of the employer with the employee is clearly and blatantly authoritative and instructive. In case of organized retail, formal training is provided to the employees immediately after recruitment. In case of the sales staff, the training period lasts from 3 days to about a week. Trainings are usually provided by the specific brands, whose products the company sells. Training and updating of it also happens at the store level. The trainings basically cover two aspects: customer interaction and product knowledge. Detailed instructions regarding how to deal with customers are given, including manners, enhancement of communications skills etc. Product knowledge includes some knowledge provision regarding the variety, quality,
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LEGAL FRAMEWORK IN MALL MANAGEMENT
material of the product. In case of the house-keeping and the security staff, the training is more rigorous and detailed. It includes instructions regarding use of cleaning fluids etc to maintain the cleanliness and hygiene of the mall. Security training involves detailed sessions on fire control, instructions for maintaining the overall safety and security and fire exit management of the mall. They also receive instructions concerning managing the parking zones, keep watch over CCTV of the mall, regarding behaviour with customers and norms concerning cleanliness and self-grooming of the employees. The training sessions are conducted every two months to update the skills of the employees. In the unorganized retail, on the other hand, no formal training is imparted to the employees. Learning of job duties and responsibilities usually happen through informal ways—learning while on job from senior sales staff. Employment status: Organized sector retail offer jobs which have the benefits of permanent employment such as Employee Provident Fund and medical benefits. Some companies also offer annual paid leaves. Employment in unorganized retail, on the other hand, is casual operating mainly on the principle of “hire and fire.” Salary scale is much higher in organized retail as compared to unorganized sector. While in the unorganized sector, helper to the salesman gets a salary of around 2,500-3,000 per month, the sales staff in retail store in a mall would get up to 6,000 to 6,500 per month, which shows that the salary scale in organized sector is almost double that in unorganized sector. However, in case of organized retail, the salary scale depends on the retail store model. If it is a branch outlet, the salary scale is higher than in case of franchise outlets. Unlike that offered in unorganized retail, employment is not casual in case of organized retail. The job has all the benefits offered by permanent employment: Provident Fund, Medical benefits etc. In case of organized retail, work hours are usually from 10am to 9 pm. There is a weekly off which can be any weekday. Holidays includes yearly paid leave for 30 days. In case of unorganized retail, on the other hand, hours of work are from 9 am to 9 pm. The employees are expected to work for six days a week. Monday is officially a holiday but shops usually remain open for half day, when the employees get overtime (double the salary). Leaves are at the mercy of the respected employer. They may grant leave only if they wish to. In the organized retail sector, there is a huge scope for fast promotion within the hierarchy of employees: that starts with sales staff followed by assistant store manager, store manager,
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LEGAL FRAMEWORK IN MALL MANAGEMENT
area sales supervisor. There is a scope for rapid promotion depending upon the performance and abilities of the employees, which is monitored and evaluated regularly. Within 5 years an employee can move up from the post of salesman to asst. store manager. Promotion from store manager to area sales supervisor also takes around 4 to 5 years. In case of unorganized sector, on the other hand, growth is possible but it is slow. The growth prospects are not much since growth is possible from the post of helper to only salesman. Most of these stores are managed by the employer cum owner himself. Hence in most of these cases the post of store manager does not exist. Employability in case of organized retailing is evidently much higher. The companies usually make sure that there is job rotation. For example, in case of house-keeping of the mall, the same staff is given different responsibilities at different times so that s/he learns all kinds of duties that house-keeping entails: floor cleaning, glass cleaning, maintenance of toilets etc. This is aimed to make the employee more diversely skilled which in turn increases his/her employability. Moreover, continuously encouragement is provided for on-job growth, by improving language skills (improvement in English through conversing) for example. Problems faced by the employers In case of unorganized retail, the problems faced by employers are mainly two: High attrition rate: Since it is casual employment, the staffs often leave without notice or prior intimation. The employers report that the attrition rate is quite high now-a-days since salary is not very lucrative and there are higher paying jobs available in the market. Moreover, the work hours are long and unorganized retail job does not offer any benefits. Shortage of labour supply: Some of the employers also reported that there is a problem of shortage of labour supply due some of the above reasons. Young people are attracted to higher paying jobs offered by other sectors. In case of organized retail, on the other hand, there are no significant problems faced. However, the problem of attrition .Attrition rate is as high as 40 to 45% in case of security and house-keeping staff. These employees who usually come from poor families simply quit without any prior notice which at times creates a problem. Attrition rate is mostly faced at the lower level jobs such as sales staff rather than at managerial levels. Problems faced by the employees:

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In case of unorganized retail employees, access to them was a problem since the employers did not give permission to interview them and answered on behalf of them. There is strict authoritative control over the employee at least during the work hours. In case of organized retail, three main problems: Customer behaviour: Sometimes the customers behave very rudely with the sales staff, which they have to face without reacting to it. As a salesperson they cannot be rude to them by rule, yet sometimes they have to occasionally confront insulting behaviour from the customers, which evidently is not a pleasing experience for them. The respondents reported their unhappiness regarding rude behavior from customers.
? Less walk-in: When there is less customer walk-in to the store, it is difficult for the

sales staff to meet the sales target set out for them. Hence they have to take extra efforts so that they do not miss the few customers that enter the store or try for “addon” sales (i.e. sale of products not initially intended to be bought by the customers). ? Long work hours and unusual work-days: Some respondents have reported the Problem of long work hours in case of retail. Moreover, they cannot afford to take leave on week-ends and public holidays. During festivals they cannot take leave or celebrate at home since sales is highest during these festivals. The organized retail labour market as against unorganized retail Overall employment status is much better in organized sector as compared to unorganized sector: Not only is salary much higher (almost double) in case of organized sector retail, the employees also get additional benefits like PF, medical cards, yearly paid leave etc. Social security and job security is evidently much stronger in this retail sector. Moreover, the employees are usually treated in a better way in the sense that there is at least an aura of friendliness and co-operative attitude that is maintained with the employees. However, pressures to observe the behavioral guidance as laid down by the company are quite strong. As against this, the objective employment status in case of unorganized retail is worse, with low salary, no job security, no additional benefits, and direct authoritative control from the employer. The employee is virtually at the mercy of the employer who entirely operates on the principle of “hire and fire.” Organized sector employees are evidently much more skilled: Organized sector retail employees are quite skilled so far as dealing with customers is concerned. All the salespersons take active efforts to make sure that the products are not only
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sold but the customer is happy and therefore will come back to the same store for buying the product. This they ensure by communicating to the buyer, trying to understand his/her needs as well as tastes and choice. Apart from skills to understand customer need, they are trained to be polite and courteous, so that the customer feels comfortable. Hence, greeting the customer in the right manner as well as presentable appearance of the salesperson is given immense importance. The idea is to treat customers as “gods”. How far these etiquettes are important in the Indian context is a different question. Whether this courteous behavior according to Western standards actually helps to impress the Indian buyer is not clear. However, these employees have to take care of their manners according to the guidelines provided by the company. All these skills are usually acquired after recruitment through both formal and informal means. They receive training by the product brands as well as continuous instructions and briefings from the store manager. In case of organized sector, skill expectations are nominal. The employee is expected to have some communication skills; active initiative to get the product sold is much lesser. Mostly they learn to deal with customers through informal means while on job, that is, from senior salespersons. Getting employment in organized retail is more difficult compared to unorganized sector: In case of organized retail, past experience in organized retail is very important for recruitment. Most of the respondents had past experience of working in organized retail. Although all the companies have their own training sessions after recruitment, in retail skills are expected to increase with experience. Freshers are employed only as sales staff. Other posts compulsorily require past experience. Personality traits matter a lot, where they are expected to learn and pick up the norms of organized retail in a prompt way. Presentable appearance is preferable, which is groomed further after recruitment. Moderate fluency in English is an added advantage. Finally, education makes a difference in the way the person carries him or deals with people. Hence, even if education is not a first criterion for selection, most of the people who are working in this retail sector or gain entry into it are well-educated usually having a graduate degree. In case of unorganized retail, on the other hand, recruitment is done on the basis of recommendation, where the employer is more concerned about the honesty and loyalty of the employee rather than his/her skills. Education has no relevance in his job. The employer just makes sure that the person comes from known
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sources and he gets to know about family whereabouts. His duties are explained after recruitment and slowly he learns the art of dealing with customers through informal means. Pressure of performance is much higher in organized sector retail: In organized retailing essentially involves an active effort on the part of the employees to meet the expectations from the employers. Performance is monitored and evaluated on a regular basis, including attendance. There are daily reports that are sent to the management. The surveillance mechanism is strong where they are continuously supervised by manual and technological assistance (camera). Moreover, there are sales targets that the sales persons have to meet over the month or week. Apart from performance evaluation they also have to abide by the strict norms to behave in a particular manner and observe disciplinary rules. APPENDIX – I STANDARDS FOR EFFLUENT DISCHARGE SR.No Parameter 1 2 3 4 5 6 7 Ph Suspended Solids BODs at 270C Hexavalent Chromium (Cr6+) Total Chromium (Cr) Oil & Grease Temperature STANDARDS Inland surface Public sewer water 5.5-9.0 100 30 0.1 2.0 10 Not exceed 50C of 8 9 10 11 12 13 14 15 16 17 receiving body Cyanides (as CN) 0.2 Ammonical Nitrogen 50 (as N) Cadmium (as Cd) Nickel (as Ni) Zinc (as Zn) Copper (as Cu) Lead (as Pb) Iron (as Fe) Total Residual Chlorine Total Nitrogen 2.0 3 5.0 3.0 0.1 3 1.0 100
39

Land for irrigation 5.5-9.0 200 100

5.5-9.0 600 350 2.0 2.0 20

10

2.0 50 1.0 3 15 3.0 1.0 3

0.2

LEGAL FRAMEWORK IN MALL MANAGEMENT
18 19 20 21 22 23 24 COD Arsenic (as As) Mercury (as Hg) Selenium (as Se) Fluoride (as F) Sulphides (as S) Phenolic Compounds (as 25 Phenols) Particle size of suspended 26 27 28 Solids Free Ammonia (NH3) Dissolved phosphate (as P) Radioactive Materials Alpha Emitters (UC/ml) max Beta Emitters 29 (UC/ml) max Bio-assay test 90% survival of fish after 96 hours in 90% survival of fish after 96 hours 90% survival of fish after 96 hours in 100% Pass 850 micron Sieve 5.0 5 10-6 10-6 10-6 10-6 10-8 10-7 250 0.2 0.01 0.05 2 2 1 0.2 0.01 0.05 15 5 0.2

in 100% effluent effluent

100% effluent 30 Vanadium (as V) 0.2 0.2 * All the values in mg/l except pH, Temp, Particle Size, Radioactivity APPENDIX-II DRINKING WATER QUALITY STANDARD AS PER BIS 10500, 1991 S.No 1 2 3 4 5 6 7 PARAMETERS Colour (Hz units) Turbidity (NTU) PH Total Hardness (CaCo3) Iron Chloride Alkalinity DESIRABLE LIMIT (mg/I) 5 5 6.5-8.5 300 0.3 250 200
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8 9 10 11 12 13 14 15 16 17 18 Boron Dissolved Solids Calcium Sulphate Nitrate Fluoride Phenolic Compound Pesticides Lead Zinc Chromium (hexavalent) 1 500 75 200 45 1 0.001 Absent 0.05 5 0.05

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