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14-August-2019

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CREDAI Bengal Daily News Update | 14.08.19

Housing finance companies to be treated as NBFCs: RBI

The RBI direction comes after notification issued by the central government, it added.

The Reserve Bank on Tuesday said housing financecompanies (HFCs) will be treated as one of the

categories of NBFCs for regulatory purposes and it will come under its direct oversight.

The Finance (No 2) Act, 2019 (23 of 2019) has amended the National Housing Bank Act, 1987,

conferring certain powers for regulation of Housing Finance Companies (HFC) with Reserve Bank of

India, it said in a release.

The RBI direction comes after notification issued by the central government, it added.

Finance Minister Nirmala Sitharaman in her maiden Budget 2019-20 speech in early July had

announced that the National Housing Bank (NHB) will not remain as the regulator for the HFCs.

"HFCs will henceforth be treated as one of the categories of Non-Banking Financial Companies

(NBFCs) for regulatory purposes. Reserve Bank will carry out a review of the extant regulatory

framework applicable to the HFCs and come out with revised regulations in due course," the apex

bank said in the release.

In the meantime, HFCs shall continue to comply with the directions and instructions issued by the

National Housing Bank (NHB) till the Reserve Bank issues a revised framework, it added.

"NHB will continue to carry out supervision of HFCs and HFCs will continue to submit various

returns to NHB as hitherto. The grievance redressal mechanism with regard to HFCs will also

continue to be with the NHB," the RBI said.

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Newspaper/Online ET Realty (online)

Date August 14, 2019

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Embassy Office Parks REIT’s net income up 19% in Q1 FY20

The board of Embassy REIT declared a distribution of Rs 417 crore, or Rs 5.4 per unit, for the

quarter. The record date for the distribution is August 21, and the distribution will be made on

or before August 27.

Embassy Office Parks REIT, India‘s first listed real estate investment trust, posted a 19% increase in

revenue from operations for the quarter through June, driven by strong leasing momentum across its

portfolio that is the largest in Asia by area.

The REIT posted revenue from operations of Rs 535 crore for the quarter, compared with Rs 449

crore a year earlier. Net operating income (NOI) also increased 19% to Rs 453 crore, while the NOI

margin for the quarter was 85%.

The board of Embassy REIT declared a distribution of Rs 417 crore, or Rs 5.4 per unit, for the quarter.

The record date for the distribution is August 21, and the distribution will be made on or before

August 27.

Embassy REIT raised Rs 3,000 crore in March this year, through listed non-convertible debentures

maturing June 2022, with a yield to maturity of 9.4%.

―Business fundamentals continue to be strong with robust leasing momentum for institutional quality

office properties,‖ said deputy chief executive Vikaash Khdloya.

New leasing during the quarter was 0.6 million square feet. Occupancy as at June 30 was 94.3% on

24.8 million sq ft of completed office portfolio.

The REIT comprises 25 million sq ft of completed and operational commercial properties across

India. There is another 8 million sq ft of on-campus development in the pipeline.

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DDA's nod to group housing development by private developers

During a meeting chaired by lieutenant governor Anil Baijal on Tuesday, the authority

approved the policy for sale of group housing plots through e-auction.

Now, private developers can also buy Delhi Development Authority‘s plots and develop group

housing society projects on them.

During a meeting chaired by lieutenant governor Anil Baijal on Tuesday, the authority approved the

policy for sale of group housing plots through e-auction. The new policy allows individuals,

partnership firms, private and public limited companies and consortium with sufficient funds to

purchase the land and develop it.

The owner will have to develop group housing as per the Delhi Master Plan-2021, and 15 percent of

the Floor Area Ratio (FAR) will be meant for community service personnel and economically weaker

sections.

Other decisions taken in the meeting included allotment of institutional plots for old age homes,

orphanages and reformatory through e-auction. ―In view of repeated requests from organizations and

societies for allotment of land in the past, the authority decided to allot institutional plots reserved for

old age homes, orphanage and reformatory,‖ said a DDA spokesperson. Till now, plots for setting up

old age homes were only allotted to government departments.

The meeting also approved a proposal to convert the category of 64.22 acres of land near Badarpur

Thermal Power Plant from ‗manufacturing‘ to ‗recreational,‘ paving the way for development of an

eco park there. Two lakh saplings are proposed to be planted in the area.

The authority granted extension till December 31, 2020 to complete construction on all plots allotted

by DDA in Rohini Residential Scheme, 1981 on payment of composition fees. ―A large number of

plots could not be constructed within the stipulated time due to several reasons, including

determination of lease, litigation on plots and financial constraints,‖ said the spokesperson.

An online scheme for disposal of 225 commercial built-up properties on a first-come, first-served

basis has also got DDA‘s nod. ―Small shopkeepers may find it easier to take shops through online

system. These units are located in Rohini, Narela, East Zone, West Zone and South Zone. The list of

available shops will be uploaded on the DDA‘s website,‖ the spokesperson added.

The authority also approved inclusion of Barwala and Mubarikpur Dabas in the list of villages where

‗Land Pooling‘ is applicable. Parts of 13 villages were approved as Urban and Development areas.



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Noida: Over 200 families of Gardenia Gateway served eviction order

The notices, dispatched by the Union Bank of India, were served to residents of Gardenia

Gateway in Sector 75 on August 5.

More than 200 families living in a Noida housing society since 2015 got the shock of their lives last

week when each of them received notices from a bank asking them to vacate their houses by August

20.

The notices, dispatched by the Union Bank of India, were served to residents of Gardenia Gateway in

Sector 75 on August 5. The documents mentioned that the developer — Gardenia India Ltd —had

taken a loan of Rs 78.45 crore on December 31, 2015, and had not made any repayment since.

The developer had mortgaged the project for the loan, the notice said, adding that the bank was well

within its rights to attach the property to recover the debt.

The residents, who had no inkling about the project being mortgaged, are incredulous that such an

―absurd‖ notice has been handed to them and are exploring legal moves. ―We are utterly shocked. We

paid the entire amount (cost of houses) to the builder before moving in and there are no dues

whatsoever. Why should the buyers be made to suffer for the builder‘s fault? We don‘t know what

harassment is awaiting us,‖ said B S Lavania, president of the residents‘ welfare association of

Gardenia Gateway.



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The additional director of Gardenia Gateway, Surender Debal, said the company was working with

the bank on settling dues.

Eviction notices stump Noida society residents

The bank hasn‘t taken the correct step by reaching out to residents with an eviction notice. The matter

is between builder and the bank. Why harass the occupants?‖ Debal asked.

The bank said it had to take the step as the developer was not responding to its queries. ―We issued the

notice to residents as a measure for debt recovery. This is the only way we hope the builders would

respond to our demand for repaying loan,‖ said Diwaker Chaudhary, the bank‘s debt recovery officer.

Kumar Mihir, a lawyer who handles real estate cases, said notices likes these cannot be sent to

residents. ―The bank can‘t reach out to residents like this and hand over eviction notices. Their

primary point of negotiation is the builder and this is an act of transgression,‖ said Mihir.

Residents of the society said they had no knowledge of the loan the developer had taken from the

bank and that the project had been mortgaged. They said they would explore legal options against the

developer.

―Even for a bank, there should be a method to operate. Handing out sudden notices to residents is not

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only absurd but illegal. We are all angry with the move,‖ Lavania said.

Flats in the Gardenia Gateway project were sold in 2011 and the buyers were handed flats between

2015 and 2016. The project is supposed to have 550 flats in total, of which 200 are currently occupied.

The project has 2,3 and 4BHK apartments in a price band of Rs 45 lakh-Rs 85 lakh.

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Japan's Softbank plans to invest in Punjab's real estate sector

A high-level delegation of the group, led by its MD Hiroki Kimoto, called on Punjab Chief

Minister Amarinder Singh here, who extended his government's full support in the realisation

of Softbank's investment plans in the state.

Japan's Softbank Group on Tuesday evinced interest to invest in Punjab's real estate sector, with focus

on student housing through OYO startup. Indian hotel start-up OYO is backed by the SoftBank

Group.

A high-level delegation of the group, led by its MD Hiroki Kimoto, called on Punjab Chief

Minister Amarinder Singh here, who extended his government's full support in the realisation of

Softbank's investment plans in the state.

Amarinder assured the delegation of seamless and smooth investment in the state through its single-

window clearance platform, Invest Punjab, in the fast-track mode.

The new Industrial Policy, coupled with lucrative incentives and facilities, was facilitating investors in

a big way, with over Rs 50,000 crore investment already realised on the ground during the past two

years, the chief minister told the delegation members, according to an official statement here.

Earlier, briefing the delegation on the various investible projects, Additional Chief Secretary,

Investment Promotion and Industries & Commerce Vini Mahajan said that Punjab had a vibrant real

estate sector, with areas around Chandigarh seeing excellent growth.

Reputed international players are looking at affordable housing, student and senior citizen housing

facility as a potential investment sector, she added.

Taking part in the deliberations, Lovely Professional University Vice Chancellor Ashok Mittal said

they were in advanced talks with Softbank for a potential collaboration for the construction of student

hostels, as there was a huge demand for hostel facility for the domestic as well as international

students.

Softbank is one of the biggest investors in the Indian startup ecosystem, with approximately 20 per

cent of its investments in India-based businesses, the statement said.

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Centre issues guidelines for Rs 1 lakh crore partial guarantee scheme

for NBFCs

NBFCs, including housing finance companies (HFCs), came under stress following series of

defaults by the group companies of IL&FS in September last year.

The Centre has issued guidelines on operationalising Rs 1-lakh crore partial guarantee scheme under

which public-sector banks can purchase high-rated pooled assets of financially sound non-banking

finance companies (NBFCs).

NBFCs, including housing financecompanies (HFCs), came under stress following series of defaults

by the group companies of IL&FS in September last year.

To help the sector come out of the stress, Finance Minister Nirmala Sitharaman in the Budget

announced support for fundamentally sound NBFCs in getting continued funding from banks.

"For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rs 1

lakh crore during the current financial year, the government will provide one-time six months' partial

credit guarantee to public sector banks for first loss of up to 10 per cent," she had said.

In pursuance of that the finance ministry last week released a detailed guidelines for this with the

objective to address temporary asset liability mismatches of otherwise solvent NBFCs/HFCs without

having to resort to distress sale of their assets for meeting their commitments.

The partial guarantee would help rework the Asset Liability structure within three months to have

positive Asset Liability Management in each bucket for the first three months and on cumulative basis

for the remaining period.

"At no time during the period for exercise of the option to buy back the assets, should the CRAR

(capital to risk weighted assets ratio) go below the regulatory minimum. The promoter shall ensure

this by infusing equity, where required," an official statement said.

As per the guidelines issued, the window for one-time partial credit guarantee will be for a period of

six months, or till such date by which Rs 1 lakh crore assets get purchased by banks.

Assets originated up to March 31, 2019 will only be eligible under this scheme, it said, adding assets

should be standard in the books of NBFCs/HFCs on the date of sale.



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It further said that the pool of assets should have minimum rating of 'AA' or equivalent at fair value

prior to the partial credit guarantee by the Government of India.

Each account under the pooled assets should have been fully disbursed and security charge should

have been created in favour of the originating NBFCs/HFCs and they can sell up to a maximum of 20

per cent of their standard assets as on March 31, 2019 subject to a cap of Rs 5,000 crore at fair value.

According to the guidelines, the rated assets shall be purchased by banks at fair value.

One-time guarantee provided by the government on pooled assets will be valid for 24 months from the

date of purchase and can be invoked on the occurrence of default as outlined under heading 'D' below,

it said.

The guarantee shall cease earlier if the purchasing bank sells the pooled assets to the originating

NBFC/HFC or any other entity, before the validity of the guarantee period, it added.

It further said that the purchasing banks may have service level agreements with the originating

NBFCs/HFCs for servicing, including administration of the individual assets.

The NBFCs/HFCs can have the option to buy back their assets after a specified period of 12 months

as a repurchase transaction, on a right of first refusal basis, it said.

With regard to eligibility criteria, the guidelines said that the NBFCs registered with RBI HFCs

registered with National Housing Bank (NHB) under the National Housing Bank can take benefit

under the window.

The CRAR of NBFCs/CAR of HFCs should not be below the regulatory minimum of 15 per cent for

NBFCs and 12 per cent for HFCs and net Non-Performing Asset should not be more than 6 per cent as

on March 31, 2019.

They should have made a net profit in at least one of the last two preceding financial years (i.e. FY

2017-18 and 2018-19).

"The purchasing bank can invoke the guarantee if the interest and/or instalment of principal remains

overdue for a period of more than 90 days (i.e. when liability is crystalised for the underlying

borrower) during the validity of such guarantee, subject to the condition that the guarantee is for the

first loss up to 10 per cent," it said.

For availing the window, it said NBFCs/HFCs will pay a fee equivalent to 0.25 per cent per annum of

the fair value of assets being purchased by the bank to the government for providing guarantee.

There should be a process of real time reporting of such transactions by the banks to the government

and to get the information on remaining available headroom for purchase of such pooled assets, it

said.

The Department of Financial Services (DFS), the Ministry of Finance would obtain the requisite

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information in a prescribed format from the PSBs and send a copy to the budget division of DEA and

the government will settle such claims by the banks within 5 working days from the date of claim.

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Reliance Home Finance finds no violations as alleged by PWC

PwC had resigned as the company's auditor on July 11, 2019 saying it did not receive

satisfactory responses to its request for additional information from the companies of the

ongoing audit for fiscal 2018-19.

Reliance Home Financeon Tuesday said that no violations under Section 143(12) of the Companies

Act were found as alleged by PricewaterhouseCoopers (PwC).

PwC had resigned as the company's auditor on July 11, 2019 saying it did not receive satisfactory

responses to its request for additional information from the companies of the ongoing audit for fiscal

2018-19.

Reliance HF claims that PwC filed the letter with Ministry of Corporate Affairs (MCA) without even

sharing a copy with them or with the board's independent audit committee. The board further noted

that the alleged basis relied upon by PwC for reporting under Section 143 (12) is itself grossly

inadequate and does not even point to a single specific instance of alleged fraud.

PWC had said that these actions "have prevented it from performing its duties as statutory auditors

and exercising independent judgement in making a report to the members of the company, and

impaired its independence, and hence, it is no longer in a position to complete the audit; and instead

feels compelled to withdraw from the audit engagement and resign."

The company's net profit remained flat in the quarter ended June 2019. Its profit after tax (PAT) stood

at Rs 48.63 crore in Q1 FY20 as against Rs 48.42 crore in Q1 FY19.

Its net income was Rs 536.98 crore during the said quarter, a growth of 31% from Rs 410.90 crore it

registered in the similar quarter last year.

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Special cell to deal with cases of Amrapali homebuyers

The authorities told a bench headed by Justice Arun Mishra that they have created the cell to

deal with cases of the homebuyers and officials had been designated especially to take care of

the issue.

The Noida and Greater Noida authorities on Tuesday told the Supreme Court that they have created a

special cell to ease out problems of the Amrapali homebuyers.

The authorities told a bench headed by Justice Arun Mishra that they have created the cell to deal with

cases of the homebuyers and officials had been designated especially to take care of the issue.

Thereafter, the court directed Noida and Greater Noida authorities to start registration of flats in

favour of Amrapali homebuyers.

The court also warned that officers of Noida and Greater Noida will be sent to jail if there was any

delay on their part in handing over possession of flats to buyers.

On July 23, the top court cancelled the real estate company Amrapali Group's Real

Estate Regulatory Authority's licence and appointed state-run National Buildings Construction Corp

Ltd (NBCC) to complete all pending projects.

The court has observed that the group prima facie committed violation of the FEMA (Foreign

Exchange Management Act) and other fraudulent activities, including money laundering, and

recommended a thorough investigation by the Enforcement Directorate to identify the culprits.

Noida and Greater Noida authorities had also been directed to execute the tripartite agreement within

one month concerning the projects where homebuyers are residing and issue completion certificate.

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Parsvnath's net loss widens to Rs 91.18 crore in Q1 FY20

The company's net income stood at Rs 56.25 crore during the said quarter, a dip of 22 per cent

from Rs 71.86 crore it registered in the corresponding quarter previous fiscal.

Parsvnath reported a net loss of Rs 91.18 crore in the quarter ended June 2019. Its loss was Rs 54.23

crore in the similar quarter last year.

The company's net income stood at Rs 56.25 crore during the said quarter, a dip of 22 per cent from

Rs 71.86 crore it registered in the corresponding quarter previous fiscal.

"The company is exploring alternative source of finance including sale of non-core assets to overcome

this liquidity shortage, and therefore management of the company is of the opinion that no adverse

impact is anticipated on future operations of the company," said SN Dhawan & Co in its audit review

of the company during the said quarter.

During the quarter, Parsvnath dis-invested all of its shareholdinq in Parsvnath Telecom, one of its

subsidiary, the company informed in its BSE filing.

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DS Kulkarni's brother detained, prevented from leaving India

Pune police in May last year filed a charge sheet against D S Kulkarni, also known as DSK, his

wife and others for allegedly cheating nearly 33,000 depositors and investors of nearly Rs

2043.18 crore.

Pune-based builder D S Kulkarni's brother Makrand Kulkarni, an accused in a Rs 2,000 crore cheating

case, was detained at the Mumbai airport on Tuesday when he was about to fly to the US, police said.

Pune police in May last year filed a charge sheet against D S Kulkarni, also known as DSK, his wife

and others for allegedly cheating nearly 33,000 depositors and investors of nearly Rs 2043.18 crore.

Makrand Kulkarni is also an accused in the case and a look out notice was issued against him by Pune

police earlier, since he was on the run after his anticipatory bail plea was rejected by a court.

"Based on specific information, a team of Mumbai police on Tuesday detained him before he could

take a flight to the US," a senior police official here said.

The Mumbai police personnel later informed their Pune counterparts about Makrand Kulkarni's

detention.

A team of Pune police's Economic Offences Wing (EOW) subsequently left for Mumbai to take him

into custody, he said.

"After completing formalities of his arrest, Makrand Kulkrani will be produced in a Pune court later in

a day," the official said.

According to a complaint filed in 2017 by one of the depositors, Jitendra Mulekar, investors put in

lakhs of rupees in a deposit scheme of DSK Developers, but they neither received the interest nor the

principal amount for months.

The EOW earlier booked Kulkarnis under various provisions of the Maharashtra Protection of Interest

of Depositors (MPID) Act, and Indian Penal Code Sections 420 (cheating and dishonestly inducing

delivery of property), 406 (criminal breach of trust) and 34 (common intention).

Around 15 people have been named as accused in the case and 10 of them have so far been arrested,

including DSK and his wife.



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A charge sheet was earlier filed by police against DSK and his wife, who are currently lodged at

Yerawada jail in Pune, the official said.

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Allianz commits $150 million to Godrej's office development platform

With this, GBTC-I now has a total potential of USD 450 million. Currently, it has secured two

developments, one each in Mumbai and Gurgaon, totalling two million sq ft.

Allianz Real Estate(Allianz) has committed another USD 150 million to Godrej Build to Core –

I(GBTC-I), an office development platform of Godrej Group, the company said in a media release.

GBTC-I invests in developing Grade-A office buildings across the key office markets of India.

With this, GBTC-I now has a total potential of USD 450 million. APG Asset Management

N.V. (APG) had committed USD 150 million to the office development platform while the rest is

committed by Godrej.

Currently, GBTC-I has secured two developments, one each in Mumbai and Gurgaon, totalling two

million sq ft. The platform aims to fully deploy the capital within a time-frame of next 12-18 months.

Godrej Fund Management (GFM), the real estate private equity arm of the Godrej Group, will be the

investment manager. With this development, the assets under management for GFM has crossed the

USD 1.6 billion mark across asset classes.

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Chandigarh Housing Board's nod must before need-based changes

In a fresh direction, the CHB has made it mandatory to take prior permission before making

the changes. Earlier, residents could take the permission even after the construction.

A failure to secure permission from Chandigarh Housing Board (CHB) before carrying out

constructions in flats as per need-based changes will be termed a violation.

In a fresh direction, the CHB has made it mandatory to take prior permission before making the

changes. Earlier, residents could take the permission even after the construction.

A senior CHB official said they have allowed certain need-based changes but permission from the

board is mandatory.

Recently, the CHB had also made submission of certificate of structural stability from a qualified

empaneled structural engineer registered with it compulsory.

Over the years, residents of 50,000 CHB flats have made need-based changes in their flats. However,

the administration had not regularized these changes and issued notices to most of the allottees.

UT administrator V P Singh Badnore had already stayed action against additional constructions,

alterations and other violations till September 30. The administration had also decided to extend

deadline of allowing need-based changes, which had ended on December 31, 2018, to December 31,

2020.

90% units have violations

A committee dealing with need-based changes found that about 90% of CHB dwelling units had some

or the other structural violation. The changes include additional rooms and toilets, conversion of

balconies into rooms and of courtyard, and building stairs on government land.

WHAT‘S Allowed

In the balcony/verandah, fixing of grilles/glazing subject to deposit of prescribed fee

Allowed to shift gate from side boundary wall to the front boundary wall of the front court yard with

prescribed fee.

Existing windows may be increased in size up to 4 inches



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Additional construction as per approved drawings with prescribed fee

Construction of lifts as per the design approved by plan approval committee (upper)

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Vizianagaram civic body extends building penalisation scheme till

August 31

The civic body has collected a sum of Rs 2.47 crores as regularisation fine since the scheme

started in January 2019.

In a bid to promote construction regularisation, Vizianagaram Municipal Corporationauthorities have

extended the date for receiving applications under the building penalisation scheme till August 31.

The civic body has collected a sum of Rs 2.47 crores as regularisation fine since the scheme started in

January 2019.

Sources in the VMC said that so far only 872 applications have been received while the actual number

of unauthorised constructions (those without approval from the town planning wing) runs into the

thousands.

According to Ch Madhusudan Rao, town planner, VMC, said that this is an opportunity for many

people to get their constructions regularised.

―We are expecting more people to come forward and regularise their constructions. Of course only

those applications where there is proper documentary evidence would be approved.‖ He added that the

scheme is only for those who have erected constructions without approval between 1985- August

2018.

Sources in the corporation said that so far 201 applications have been disposed of under the

regularisation scheme, while another 570 applicants have received messages concerning issues with

their applications, and another 216 are yet to receive information.

The drive has been intensified keeping in view the fact that Vizianagaram municipality was recently

elevated to a corporation and unless the regularisation process is taken up, project-based funds due to

the corporation would not be released.

Officials said that the number of new constructions being taken up in the district headquarters ran into

the hundreds every year and added that many people are ignorant of the norms under the AP

Development Permission Norms and Systems.

They further added that they have set up billboards at city junctions, informing people about the

extended date raising aware of the norms.



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Chandigarh administration defers plan to vacate Colony No. 4 after

August 15

The UT estate office and the CHB have already given flats to 2,482 eligible slum-dwellers in

Maloya under the Slum-dwellers Rehabilitation Scheme.

The UT estate office has deferred its plan to vacate Colony No. 4 after Independence Day as adequate

police force is not available to carry out the exercise.

The deadline given to the slum-dwellers to vacate the land of Colony No. 4, has already expired on

July 22. The land is currently occupied by slum-dwellers, who will be rehabilitated by the

administration at Maloya under Slum-dwellers Rehabilitation Scheme.

The UT estate office and the CHB have already given flats to 2,482 eligible slum-dwellers in Maloya

under the Slum-dwellers Rehabilitation Scheme.

A senior official of the UT estate office said that they need adequate police protection to carry out the

exercise. They had requested the police department but as forces are busy in security arrangements

due to Independence Day celebrations, they will now carry out exercise after August 15, he added.

The colony has more than 5,000 houses. The allottees will have to pay Rs 1,000 as licence fee every

month for 20 years, after which they will pay the balance to get the ownership of the flat.

The construction of the flats in Maloya had begun in June 2014 at a cost of Rs 250 crore and Prime

Minister Narendra Modi was to hand over the flat keys to the allottees in May last year, but he could

not as the project was incomplete. The project was originally meant to be completed by 2016.

The CHB is the nodal body for the construction of rehabilitation colonies. So far, it has built 12,736 of

the 25,728 flats proposed. Of these, around 12,000 were built in Sector 38 (W), Sector 49, Dhanas,

Mauli Jagran-II and Ram Darbar.

The administration rehabilitates slum-dwellers after conducting a biometric survey. The colonies

resettled in the last 10 years include Colony No 5, Nehru Colony, Kuldeep Colony and Mazdoor

Colony.

Rehabilitation scheme

The UT administration has made it mandatory for all slum-dwellers of Colony No. 4 to demolish their



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jhuggis within three days of taking the possession of flats under a rehabilitation scheme. The estate

office will write to the CHB for the cancellation of the allotment of flats to them in case they fail to

demolish their jhuggis.

This is the first time that the demolition clause has been included for the allotment of flats to slum-

dwellers. Earlier, the administration used to demolish the slums vacated by dwellers using its own

resources.

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DB Realty reports net loss of Rs 60.29 crore in Q1 FY20

The company's income stood at Rs 34.44 crore during the said quarter, a dip of 43 per cent from

Rs 60.24 crore it registered in the corresponding quarter last fiscal.

DB Realty reported a net loss of Rs 60.29 crore in the quarter ended June 2019. Its loss after tax stood

at Rs 120.98 crore in the similar quarter last year.

The company's income stood at Rs 34.44 crore during the said quarter, a dip of 43 per cent from Rs

60.24 crore it registered in the corresponding quarter last fiscal.

DB Realty has investments in certain subsidiaries and related parties aggregating to Rs 1,282.36 crore

and loans and receivables outstanding aggregating Rs 516.46 crore as at June 30, 2019.

"The underlying projects in such entities are in the early stages of real estate development and are

expected to achieve adequate profitability on substantial completion and/ or have current market

values of certain properties which are in excess of the carrying values. The company considers Its

investments and loans in such entities as long term and strategic in nature," it said in its BSE filing.

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Link https://realty.economictimes.indiatimes.com/news/industry/db-realty-reports-net-loss-of-rs-60-29-crore-in-q1-fy20/70663584

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Why construction jobs are fading

Construction has been the leading job-creator in the last couple of decades, absorbing people

who fled thankless farming jobs.

The sector boomed in the last two decades, absorbing unskilled workers who fled the farming crisis. It

has stalled in the last six years, and demonetisation also dealt it a blow. There are now fewer jobs,

and construction workers have nowhere to go, writes Amulya Gopalakrishnan

After nearly four decades in construction work, 62-year-old Babu Lal has a bleak, philosophical view

of the business. A raj mistri (expert mason) in Dwarka, he has been working in Delhi since 1981, and

has seen the industry blaze with activity over the 1990s and 2000s, sputter and then cool. ―Pehle kaam

zyaada tha, aadmi kam. Today, there is a crush of workers, less work, and unemployment

everywhere,‖ he says.

―It was poverty that drove many of us here to this job. The mazdoori began when the water started

drying up,‖ he says. Construction has been the leading job-creator in the last couple of decades,

absorbing people who fled thankless farming jobs.

Construction jobs had surged several times over a decade ago — from only 17 million in 1999-2000

to 25.6 million in 2004-05 and 50.3 million in 2011-12. It became a bigger part of the jobs pie — from

claiming 3.2% of the workforce in 1983 to 10.6% in 2011-12. In those boom years, out of every five

non-farm workers, one worked in construction.

That story has stalled in the years since. The latest periodic labour force survey shows the growth rate

is sharply down, and the sector remains stagnant with 54.3 million jobs in 2017-18, says economist

Ravi Srivastava, who has studied the sector. In the last six years, barely four million jobs have been

added despite all the public investment in toilets and homes. Private investment has clearly slumped.

―This has implications for manual unskilled labourers who are deeply distressed in agriculture, but

have nowhere to go. Earlier, those leaving farming got jobs in construction: their wages rose,

consumption rose, and poverty fell. Now, the real wage rate has collapsed for both regular and casual

workers,‖ says economist Santosh Mehrotra.

Demonetisation struck a sharp blow to construction and real estate, affecting the number and pace of

projects. ―I was out of work for months. Kaam abhi bhi dheela chal raha hai,‖ says Banwari Lal, a

mason, as he smooths out a window ledge in a house he is building. ―Sometimes I work 15 days,

sometimes 20, sometimes it‘s hard to find work — there is no certainty.‖



Link https://realty.economictimes.indiatimes.com/news/industry/why-construction-jobs-are-fading/70651821

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Smaller projects, like standalone homes, are better paid than big corporate buildings, but require only

a few weeks of work, while the big ones offer a full month of work, with less money. Men usually get

between Rs 300 and Rs 500 for a day‘s work, while women get Rs 250 for the same work. Married

couples often work in pairs, in small projects. Women are confined to unskilled work like mixing

masala, carrying loads back and forth, while men can do masonry, carpentry, plumbing and electrical

work, which pay better.

At a large project site in Gurgaon, some women say they would like to learn too, and talk of a woman

from Bilaspur who did, remarkably enough, become a mason. Women‘s unskilled work is also the

first to be replaced: ―Now, there are machines to make the masala, so they don‘t need us to do it,‖ says

Ram Devi, a young woman from Harpalpur, Madhya Pradesh. Many of the more large-scale,

mechanised building projects don‘t even employ women any more.

Many workers progress on the job. Lala Ram, from Alwar, had started out with beldari, but soon

moved on to painting. He watched others, taught himself through online videos. ―First I learnt roller

painting, then ‗texture‘, for which people pay more — 1,000, 1,500, even 10,000,‖ he says. Usually,

specialisations are related to criss-crossing networks of caste, region and ethnicity, says Srivastava. To

learn on the job and climb the skill ladder, you need someone to teach you, let you in. It‘s not as easy

for people from scheduled castes to move up this way, he says.

Things are more difficult for migrant workers who go from project to project, living in camps on the

site, or on urban outskirts. There is a chain of contractors, sub-contractors and sardars who either

bring them in. Usually, the thekedar is known to the workers, often they pay an advance to their

families. Given this itinerant life, too many children are kept out of school, says Sunita of Mobile

Creches, an NGO that provides daycare for construction workers.

There has been an array of laws that applies to these jobs; the Building and Other Construction

Workers Act, 1996, mandated welfare boards to look into safety, insurance, children‘s education,

medical and maternity benefits and so on, to be covered through a cess levied on employers. In 2006,

the Supreme Court started monitoring its implementation. In Dwarka, Sunita Sharma of the Nirman

Mazdoor Panchayat Sangh, which started in 2005, is helping renew registrations, and women trickle

in now and then, for help with papers, to access their entitlements.

But the Centre‘s new labour code is set to subsume this system. Unions are jittery about the lack of

clarity on safety, and the fact that workers will have to contribute towards their own social security,

rather than employers doing so through a cess. ―Construction workers do not have regular work

through the month and cannot afford to pay 12.5% of their monthly earnings for welfare,‖ says

Subhash Bhatnagar of the Nirman Mazdoor Panchayat Sangh. What‘s more, he says, 4-crore-plus

workers have registered under the 36 welfare boards. ―If these are dismantled and a new system is set

up, then these benefits will be set back by another decade or so.‖

Unions are effective only in a few states and localities — and they are actively discouraged by bigger

companies and contractors. ―There is such a hunger for jobs, that if you hold out and say you want a

full Rs 500 as mandated, they will just get someone else who is willing to work for Rs 400,‖ says

Babu Lal.

Even the settled workers are finding it harder to get by these days. ―Earlier, Rs 100 would mean we

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could eat and drink and still have some money left over, now that isn‘t possible. Even Rs 1,000 means

less now. There isn‘t enough to make ends meet, to pay rent and cooking gas and food,‖ says Sampat

Ram, a carpenter. Some of them don‘t have a choice but to work ―jab tak haath pair chalein‖, they say,

describing a woman over 65, a widow who had no choice but to carry on with hard labour at the site.

―I don‘t like being covered in dhool-mitti, staying dirty all day. But it‘s a job, and in the evening no

one really hates their life,‖ says Lala Ram. He and his friends swear by the restorative properties of

gur (jaggery) which, they say, clears the throat and chest of dust particles. And that way, even hard

days have some sweetness in them.

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PMAY-Urban push may soften real estate prices in Gujarat

The Centre and state government’s plan to boost supply of affordable housing, with two lakh

new houses by 2021, is likely to shake up Gujarat’ realty sector and may even lead to a softening

of prices

The Centre and state government‘s plan to boost supply of affordable housing, with two lakh new

houses by 2021, is likely to shake up Gujarat‘ realty sector and may even lead to a softening of prices.

Under the Pradhan Mantri Awas Yojana — Urban (PMAY-U) scheme which envisages the

development of 5.24 lakh affordable houses, 2.70 lakh have already been built. The remaining 2.54

lakh units are under construction and will be completed by 2021, one year ahead of the government of

India‘ (GoI) deadline.

In the last two years alone, Gujarat Housing Board (GHB) and ULBs (urban local bodies) have

developed some 30,000 affordable houses costing between Rs 11 lakh and Rs 19 lakh. Another 30,000

houses are under construction.

Constructing 4 lakh dwelling in the next two years could be a challenge, said a real estate developer,

who did not see any negative impact on the housing sector, given the limited number of people opting

for government-built units.

Lochan Sehra, secretary of the (housing and Nirmal Gujarat), urban development and urban housing

department said, ―According to the latest GoI data we have maintained our lead in construction of

houses under the PMAY(U) scheme with 82% completion. According to the target given by the chief

minister, we are ahead of the national deadline of 2022 in completion of houses approved under the

PMAY(U) demand survey.‖

―We will not only achieve the targeted number of homes, but we will surpass the target. The 2.5 lakh

houses that are under construction will be ready in the next 18 to 20 months‘ time,‖ he added.

Various government agencies have forayed into affordable housing directly and through PPP (public

private partnership). The redevelopment of houses on private slum land is expected to soften prices of

affordable homes.

―Earlier only private sector developers were active in the affordable housing segment. The

government is not only directly building or promoting under the PPP model but also giving subsidies

up to Rs 2.5 lakh in the affordable housing category,‖ said Sehra. Some 1.8 lakh affordable homes are

expected to be developed in this segment in the coming two years, he said.



Link https://realty.economictimes.indiatimes.com/news/residential/pmay-urban-push-may-soften-real-estate-prices-in-gujarat/70655642

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Nagpur civic body arranges special camps to expedite land acquisition

Around 2,500 plot owners availed the benefit of the special camps in the last one week.

The Nagpur Municipal Corporation (NMC) has arranged special camps and also started a socio-

economic survey to expedite land acquisition (LA) in the Smart City area — Pardi, Bharatwada,

Bhandewadi and Pardi in East Nagpur. LA is crucial for execution of the Smart City project.

Mahesh Moroney, deputy CEO of the Smart City special purpose vehicle — Nagpur Smart and

Sustainable City Development Corporation Limited (NSSCDCL) — said the two initiatives will also

ensure registration of plot ownership with the city survey department.

―Many plots were in the agriculture category. Ownership of plots, too, was not registered with the city

survey department. All plots have been converted into non-agriculture (NA) with the approval of the

town planning scheme by the state government. Plot owners have to pay NA cess at the collector‘s

office for mutation with the city survey department. NA cess is a small amount but it‘s mandatory. We

coordinated with the collector‘s office and they started conducting special camps at Bharatwada in the

Smart City area. Now, plot owners are attending the camps and completing formalities. They would

have delayed or neglected paying the cess if they had to go to the collector‘s office,‖ said Moroney.

He added that around 2,500 plot owners availed the benefit of the special camps in the last one week.

―The camps will continue for the remaining 10,000 plot owners,‖ he said.

Moroney also said that special camps of the city survey department will also be organized for

mutation. ―Camps for mutations will end the lengthy process,‖ he said.

The SPV needs to acquire a few houses and the total area of a few plots for construction of roads and

development of other basic amenities like a housing scheme, gardens, community centre etc. Also, the

SPV will acquire 40% area of the total plots as per the town planning scheme. The SPV cannot

acquire land if it‘s not in the name of the current owner.

Moroney said the socio-economic survey also started three months ago. ―An NGO has been appointed

for the survey. SPV will get the detailed information of plots‘ area, current owner, number of persons

residing in the property, the economic condition of owner etc. This will help in expediting the works

of project,‖ he said.

Under the project, estimated to cost Rs3,303 crore, an area of 1,743 acres in Pardi, Bharatwada,



Link https://realty.economictimes.indiatimes.com/news/infrastructure/nagpur-civic-body-arranges-special-camps-to-expedite-land-acquisition/70651923

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Bhandewadi and Punapur will be converted into Smart City. Around 1.13 lakh people residing in the

area are likely to gain from the project.

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99acres posts loss before tax of Rs 3.4 crore in Q1 FY20

The segment generated a revenue of Rs 56.4 crore, a growth of 35 per cent from Rs 41.9 crore it

recorded in the corresponding quarter last year.

99acres, real estate arm of Info Edge (India), reported a loss before tax of Rs 3.4 crore in the quarter

ended June 2019. Its loss before tax was Rs 12.86 crore in the similar quarter last year.

The segment generated a revenue of Rs 56.4 crore, a growth of 35 per cent from Rs 41.9 crore it

recorded in the corresponding quarter last year.

Overall, Info Edge (India) recorded a net loss of Rs 190.90 crore in Q1 FY20 while the net income

was Rs 349.29 crore.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/99acres-posts-loss-before-tax-of-rs-3-4-crore-in-q1-fy20/70660405

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Housing affordability has improved in Canada in last decade: Study

Mortgage payments as a share of household income fell 3.6% in the second quarter from the

previous quarter to 45.1%, according to National Bank of Canada's urban composite index.

Canadian housing affordability improved by the most in a decade in the second quarter, as mortgage

rates fell and household income rose, data from National Bank of Canada showed on Monday.

Mortgage payments as a share of household income fell 3.6% in the second quarter from the previous

quarter to 45.1%, according to National Bank of Canada's urban composite index. It was the largest

quarterly decrease for the measure since the first quarter of 2009.

Housing affordability could be an important issue in Canada's October federal election. A poll

commissioned by CBC News showed last month that the cost of living, which includes housing costs,

was the most worrisome issue for Canadians.

In the March federal budget, Canadian Prime Minister Justin Trudeau's Liberal government

introduced a program that lets some first-time buyers finance a portion of their home purchases

through a shared equity mortgage with the Canadian Mortgage and Housing Corporation (CMHC), a

government housing agency.

The benchmark 5-year mortgage rate fell 45 basis points and median household income rose 1.7% in

the second qaurter, National Bank of Canada said. Affordability in the second quarter was also helped

by a 1.0% decline in home prices.

Affordability improved the most in Vancouver, Victoria and Toronto. Countrywide, improvement was

seen in all types of dwellings.

Despite the jump in affordability, Vancouver and Toronto continue to be the least affordable cities in

Canada.

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Link https://realty.economictimes.indiatimes.com/news/residential/housing-affordability-has-improved-in-canada-in-last-decade-study/70654648

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