23-July-2019 - CREDAI€¦ · According to Midha's complaint, he had booked a 2 BHK flat in...

23-July-2019

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CREDAI Bengal Daily News Update | 23.07.19

RBI closely monitoring 50 NBFCs for signs of contagion

“It is our endeavor that there is no contagion,” says RBI Governor Shaktikanta Das.

India‘s central bank is seeing ―signs of fragility‖ in some of the 50 mortgage lenders and other shadow

banks it is monitoring to prevent the spread of a crisis that followed the collapse of a non-bank lender

last year.

―It is our endeavor that there is no contagion,‖ central bank Governor Shaktikanta Das said in one of

his first media interviews on Saturday. "We are constantly in touch with the large lenders. Such non-

banking finance companies including housing finance companies, where we see some signs of

fragility."

Just as they emerge from the worst bad-loan problem in two decades, India‘s banks are staring at

another potential surge in soured debt as a result of their exposure to troubled non-banking finance

companies. In its latest Financial Stability Report, the Reserve Bank of India warned that any failure

among the largest of the non-bank finance companies or housing finance firms could cause losses

comparable to a major bank collapse.

―Not a day has passed over the last several months when internally we have not had a review or some

discussion on the NBFCs, either on the sector, or on the individual NBFCs,‖ Das said in an interaction

at his office in the RBI building overlooking the Mumbai skyline and the Arabian sea.

A year after a series of defaults by Infrastructure Leasing & Financial Services forced the government

to intervene and exposed weaknesses in the sector, the problems of India‘s NBFCs are entering a new

phase. Some lenders such as Dewan Housing Finance Corp. and tycoon Anil Ambani‘s Reliance

Capital are struggling, putting the loans they received from regulated banks at risk.

The central bank selected the non-banks to monitor based on the size of its balance sheet, volume of

operations, governance practices and credit behavior, he said.

There have been some instances of governance lapses and ―we are dealing with it,‖ Das said, without

naming any company. ―But there are a large number of others who have encountered business failures

and certain external factors which impacted their business model.‖

Das said lenders which haven‘t been diligent in their lending practices ―will have to pay a price for it.‖

The Indian government earlier this month threw a lifeline to some of the better-rated NBFCs by

agreeing to backstop some of the assets that banks purchase from them, thereby improving their

Newspaper/Online ET Realty (online)

Date July 23, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/rbi-closely-monitoring-50-nbfcs-for-signs-of-contagion/70338602

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liquidity. The RBI, which is now a regulator of the housing finance companies, also eased liquidity

ratio rules for banks to encourage refinancing for shadow lenders.

However, the Reserve Bank has resisted calls to provide a separate liquidity window for the struggling

NBFCs, and Das reiterated his opposition saying that a NBFC ―refinance window is a misnomer.‖

―We are monitoring the NBFC sector very closely,‖ Das said in his office adorned with two replicas

of Lord Jagannath, a form of the Hindu god Vishnu, revered in his native Odisha state. ―There have

been improvements but challenges still remain.‖

India‘s cash-strapped NBFCs are closely interconnected with the banks, either through loans or

purchases of NBFC bonds. That poses a new challenge to the RBI‘s efforts to clean up from an earlier

bad loan crisis -- mostly due to excessive lending to large energy, steel and other industrial companies

-- and to encourage more lending to boost the economy.

―We are constantly in touch with the large lenders to such NBFCs including housing finance

companies where we see some signs of fragility,‖ Das said.

Mortgage lenders had outstanding loans of about Rs 9.3 lakh crore ($135 billion) as of March 31,

2018, according to RBI data. Repayment of some of the loans maybe at risk as the cash crunch among

non-banks has raised questions around solvency of real-estate companies, and threatens to push 70 per

cent of them out of business in the next two years, Goldman Sachs Group Inc. said in a note earlier

this month.

Das, however, said the central bank wants non-bank companies to recover, adding that their business

model is viable.

―In the process, the promoters will have to make certain sacrifice,‖ Das said, referring to the founders

of non-banks. ―The promoters have to accept certain hair cut and the banks will also have to deal with

it appropriately.‖

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Buyers cannot be made to wait indefinitely: Delhi consumer court to

Unitech

It directed Unitech to refund Rs 9,79,326 lakh paid by Gurgaon resident Ravinder Midha within

45 days along with simple interest at 10 per cent per annum for the six-year delay in handing

over the possession of the apartment.

The Delhi State Consumer Commission has observed that home buyers cannot be expected to wait

indefinitely for possession of flats after making payments. The observation came after it asked real

estate giant Unitech to refund over Rs 9 lakh to a Gurgaon-based home buyer for failing to hand over

the possession of an apartment.

It directed Unitech to refund Rs 9,79,326 lakh paid by Gurgaon resident Ravinder Midha within 45

days along with simple interest at 10 per cent per annum for the six-year delay in handing over the

possession of the apartment.

The commission noted that Unitech failed to construct and deliver possession of the flat even after six

years despite taking payment for it, thereby "indulging in unfair trade practice" and "retaining the

hard-earned money" of the buyer.

"The opposite party (Unitech) is not in a position to offer possession of the flat, it shall be liable to

refund the amount with simple interest of 10 per cent per annum (from the date of payment by the

purchaser) without any further liabilities," the commission's presiding member Justice Veena

Birbal and member Salma Noor said.

"There is no dispute that Unitech has failed to construct and deliver the possession of the flat till

today," they said.

"The complainants cannot be expected to wait for possession of the flat for an indefinite period," they

added.

According to Midha's complaint, he had booked a 2 BHK flat in Unitech's 'Unihomes' project on May

21, 2011 for Rs 23,80,824, out of which he had paid Rs 9,79,326.

He said even after receiving substantial payment, Unitech failed to deliver the possession of the flat to

him and he is presently staying in a rental apartment.

Midha also issued a legal notice in 2017 to the builder to which no reply was given.


Date July 23, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/buyers-cannot-be-made-to-wait-indefinitely-delhi-consumer-court-to-unitech/70338525

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In his complaint, he alleged that the project, which is a multi-tower complex, is yet to be completed

and none of the flat buyers, including him, has been offered possession.

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Flat owners must pay 18% GST on monthly maintenance of over Rs

7,500: Finance Ministry

As per the rules, RWAs are required to collect GST on monthly subscription/contribution

charged from its members if such payment is more than Rs 7,500 per flat per month.

Flat owners will have to pay GST at 18 per cent if their monthly contribution to resident welfare

association (RWA) exceeds Rs 7,500, the Finance Ministry said on Monday. As per the rules, RWAs

are required to collect GST on monthly subscription/contribution charged from its members if such

payment is more than Rs 7,500 per flat per month and the annual turnover of RWA by way of supply

of services and goods exceeds Rs 20 lakhs.

In a circular issued to field offices on how should the RWA calculate GST payable where the

maintenance charges exceed Rs 7,500 per month per member, the Finance Ministry said the

exemption from GST on maintenance charges charged by an RWA from residents is available only if

such charges do not exceed Rs 7,500 per month per member.

"In case the charges exceed Rs 7,500 per month per member, the entire amount is taxable. For

example, if the maintenance charges are Rs 9,000 per month per member, GST @18 per cent shall be

payable on the entire amount of Rs 9,000 and not on (Rs 9,000-Rs 7,500) = Rs 1,500," it said.

On how the tax liability would be calculated for a person who owns two or more flats in the housing

society or residential complex, the Ministry said in such cases the ceiling of Rs 7500 per month per

member shall be applied separately for each residential apartment owned by him.

"For example, if a person owns two residential apartments in a residential complex and pays Rs

15,000 per month as maintenance charges towards maintenance of each apartment to the RWA (Rs.

7500/- per month in respect of each residential apartment), the exemption from GST shall be available

to each apartment," it said.

The Ministry further clarified that RWAs are entitled to take input tax credit (ITC) of Goods and

Services Tax (GST) paid by them on capital goods (generators, water pumps, lawn furniture etc.),

goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and

maintenance services.

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Date July 23, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/flat-owners-must-pay-18-gst-on-monthly-maintenance-of-over-rs-7500-finance-ministry/70338551

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SC to pronounce verdict in Amrapali Case today

The apex court reserved the verdict in the matter on May 10 after Noida and Greater Noida

authorities said they don't have the resources and expertise to construct the stalled projects of

Amrapali Group.

The Supreme Court will pronounce verdict on Tuesday as to who would complete the stalled projects

of embattled real estate major Amrapali Group to give respite to over 42,000 hassled home buyers.

A bench headed by Justice Arun Mishra will pronounce the verdict in the case.

The apex court reserved the verdict in the matter on May 10 after Noida and Greater Noida authorities

said they don't have the resources and expertise to construct the stalled projects of Amrapali Group.

Both the authorities had favoured handing over the properties to a reputed builder under the

supervision of a high powered committee.

The authorities had expressed inability to take any action like cancellation of lease agreements against

the group, which regularly defaulted on payments, due to "bulk of home buyers" and "political

weight".

Both the authorities told the apex court that they have outstanding of around ?5,000 crore from

Amrapali towards the principal amount and interest component, besides the penal interest.

The top court on May 8 said that it may give ownership rights of all the 15 prime residential properties

of Amrapali to Noida and Greater Noida Authorities as it has failed to fulfil its obligations towards

42,000 home buyers.

The bench had then reserved its verdict on the question as to who will take over the management

control and which builder or developer should finish the stalled projects of Amrapali.

The court had asked Noida authority to explain what action it has taken against Amrapali Group

which was a "chronic defaulter" in payment of lease amount.

Noida authority said that under their jurisdiction they have seven projects of Amrapali and they have

an outstanding of nearly ?2,000 crore while they had received only ?505 crore.

It had conceded that besides issuing repetitive show cause notices to Amrapali Group for defaulting in

payments to Noida, they have not done anything.


Date July 23, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-to-pronounce-verdict-in-amrapali-case-today/70338597

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Similar stand was taken by Greater Noida authority which had said that Amrapali Group has five

projects under its jurisdiction out of which four are vacant lands and no construction has taken place.

Greater Noida authority had said that Amrapali has an outstanding of around 3400 crores and has paid

only ?363 crores till now.

After the reluctance shown by Noida and Greater Noida, the top court had indicated that the National

Buildings Construction Corporation (NBCC) Limited could be one of the option to complete the

stalled projects.

The court appointed forensic auditors -- Pawan Aggarwal and Ravinder Bhatia -- have found wide

scale irregularities in the financial affairs of Amrapali Group and their initial report has suggested that

over ?3,000 crore of home buyers money.

On May 8, the apex court had said that it would throw Amrapali out from its properties and transfer its

lock, stock and barrel to Noida and Greater Noida.

On February 28, the apex court had allowed the Delhi police to arrest Amrapali group CMD Anil

Sharma and two directors on a complaint that home-buyers of their various housing projects were

cheated and duped of their funds.

The top court, which is seized of several pleas of home-buyers seeking possession of around 42,000

flats booked in projects of the Amrapali group, also ordered attachment of personal properties of the

CMD as also its directors -- Shiv Priya and Ajay Kumar.

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NHB asks HFCs to desist from home loans involving pre-EMI by

builders

The direction has been issued by the NHB in view of several complaints of frauds allegedly

committed by certain builders using subvention schemes.

Worried over frauds by builders, the National Housing Bank(NHB) has asked housing finance

companies (HFCs) to "desist" from offering loans under subvention scheme wherein real estate

developers pay pre-EMIs on behalf of home buyers for a certain period. The direction has been issued

by the NHB in view of several complaints of frauds allegedly committed by certain builders using

subvention schemes.

Reacting to the NHB Circular, property consultant Anarock Chairman Anuj Puri said this would

definitely put even more strain on many developers that are already facing precarious liquidity

situation.

"Based on a review of the matter, HFCs are advised to desist from offering loan products involving

servicing of the loan dues by builders/developers etc. on behalf of the borrowers," NHB said in a

circular.

It has clarified that the stipulation related to subvention scheme would also be effected in cases

wherein the HFC is yet to commence disbursements under the sanctioned cases.

Citing its earlier order in 2016, the NHB said that disbursal of housing loans by HFCs should be

strictly linked to the stages of construction and no upfront disbursal should be made in case of

incomplete/un-constructed projects.

"It is reiterated that disbursal of housing loans sanctioned to individuals should be closely linked to

the stages of construction of the housing project/houses," the circular said.

In cases of projects sponsored by Government/Statutory Authorities, HFCs may disburse the loans as

per the payment stages prescribed by such authorities, even where payments sought from house

buyers are not linked to the stages of construction, provided such authorities have no past history of

non-completion of projects.

"HFCs should have in place a well-defined mechanism for effective monitoring of the progress of

construction of housing projects and obtaining consent of the borrower(s) prior to release of payments

to the builder/developer," it added.


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/nhb-asks-hfcs-to-desist-from-home-loans-involving-pre-emi-by-builders/70333481

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Merely obtaining a borrower's consent and release of funds by the company without linkage to the

stage of construction will be seen as dereliction of duty by the HFC, the NHB warned.

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Mapletree to exit Bengaluru's Global Tech Park in Rs 2,500 crore deal

Mapletree, a wholly-owned subsidiary of Temasek Holdings, had acquired 100% in the

property earlier known as Assetz Global Technology Park in 2011 for Rs 800 crore.

Singapore-based Mapletree Investments Private Ltd is exiting an office project in a deal estimated at

Rs 2,500 crore — one of the largest commercial private equity exits in India and the largest in the city,

people familiar with the development said. Its investment in Global Tech Park, Bengaluru, more than

tripled in eight years, they said.

Mapletree, a wholly-owned subsidiary of Temasek Holdings, had acquired 100% in the property

earlier known as Assetz Global Technology Park in 2011 for Rs 800 crore. Global Tech Park is ―an

integrated mixed-use development which has developable area of 15 acres,‖ one source said. Large

corporates operating from the property include Vodafone and LinkedIn.

―Mapletree has already initiated the process of divesting the property,‖ the person said. ―The request

for proposal has been floated too. This was the fund‘s first investment in India.‖

A detailed email sent to both Mapletree and CBRE, adviser to the deal, did not elicit response as of

press time on Sunday. Mapletree had made the investment through the Mapletree India China Fund

that had raised $1.2 billion in committed capital at final close in August 2008. The dual-country fund

invested primarily in commercial, residential and mixed-use property projects in tier I and II cities.

Institutional investors‘ appetite for Indian real estate, particularly the commercial segment, has

maintained robust momentum for a year. Private equity investment in the sector has touched nearly $1

billion during January-March, showed Anarock Property Consultants data.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/mapletree-to-exit-bengalurus-global-tech-park-in-rs-2500-crore-deal/70323378

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Assotech Realty leases 1.5 lakh sq ft office space to IndiaMART

"IndiaMART has leased 1.5 lakh sq ft office space in our project Assotech Business Cresterra,"

Assoctech Realty Managing Director Neeraj Gulati said.

Assotech Realty has given on lease 1.5 lakh sq ft of prime office space to IndiaMART InterMesh

Ltd in its commercial project in Noida, Uttar Pradesh, at an annual rent of over Rs 7 crore. Assotech

Realty is developing 18 lakh sq ft of commercial project, comprising office, retail and serviced

apartments at Sector 135 on the Noida expressway. It has already completed the first phase

comprising 10.8 lakh sq ft.

"IndiaMART has leased 1.5 lakh sq ft office space in our project Assotech Business Cresterra,"

Assoctech Realty Managing Director Neeraj Gulati said.

The office will have a seating capacity of around 2,000 employees.

"The leasing transaction has been done at Rs 40 per sq ft per month," he said adding that the Noida

market is emerging as an affordable commercial real estate hub with rentals much lower than

Gurugram.

With this transaction, Gulati said the first phase of this project is fully leased.

Earlier, the company had leased 3 lakh sq ft to Birlasoft, 30,000 sq ft to Dynata, 16,000 sq ft to Regus

and 8,000 sq ft to Agastan. About 2.5 lakh sq ft area were sold.

The first phase has 75,000 sq ft of retail space and 195 serviced apartments managed by Lemon Tree

Hotels. Property consultant CBRE has been roped in for facility management.

The leasing agreement for nine years was concluded by Indiamart CEO Dinesh Gulati and Assotech

Realty Director Salil Kumar.

The construction of the second phase is expected to complete by the second half of 2020.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/assotech-realty-leases-1-5-lakh-sq-ft-office-space-to-indiamart/70331428

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NCLAT reserves order on extension of resolution process of Jaypee

The two-judge bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya will pass the

order in its next hearing on July 29.

The National Company Law Appellate Tribunal (NCLAT) on Monday reserved the order over IDBI

Bank's request to extend Jaypee Infratech's (JIL) resolution process by excluding around 250 days

from the ongoing process.

The two-judge bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya will pass the order in

its next hearing on July 29.

The lead banker to the bankrupt realty firm had in the previous hearing on Friday told that on

September 17, 2018, an application was filed in the National Company Law Tribunal (NCLT) for

clarification on the apartment allotees' voting share and the tribunal decided on it on June 4, 2019.

The lenders wanted this period during which no bid could be approved by the Committee of Creditors

(CoC) to be excluded.

Under the Insolvency and Bankruptcy Code (IBC), the resolution process of a company is mandated

to be concluded within 270 days, failing which the company has to go for liquidation. The 270-day

deadline for Jaypee Infratech ended on May 6.

The appellate tribunal also asked Jaypee Associates Ltd (JAL) to file a submission on its stand on

liquidation and extension of the process and what it sees as the way forward, after the company asked

the tribunal not to extend the process, while saying that it did not want liquidation of the firm.

Justice Mukhopadhaya observed that if the process is not extended, the only possible step would be

liquidation.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/nclat-reserves-order-on-extension-of-resolution-process-of-jaypee/70333695

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Auditors of DHFL raise red flags around quarterly results

The Mumbai-based housing finance company has been also stung by allegations of fraud and

improper lending practices that have spooked investors and sent shares plunging to decade-low

levels.

India's Dewan Housing Finance Corp Ltd (DHFL) filed its long-delayed audited results for the quarter

ended March 31 late on Monday, and revealed that its auditors had raised several red flags around its

numbers, raising fresh concerns about the future of the troubled lender.

DHFL, one of India's biggest housing finance companies with almost 1 trillion rupees ($14.52 billion)

in debt, has been hard hit by a liquidity crunch that has crippled several Indian non-banking finance

companies (NBFCs) following last year's collapse of infrastructure lender IL&FS.

The Mumbai-based housing finance company has been also stung by allegations of fraud and

improper lending practices that have spooked investors and sent shares plunging to decade-low levels.

DHFL has said the allegations are unfounded and malicious. An independent auditor appointed by

DHFL's board to probe the allegations gave the company a clean bill, but noted that the firm's

monitoring of loans was inadequate.

DHFL said on Monday its audited results were largely in line with the unaudited net loss it reported

on July 13. But the auditors' concerns disclosed on Monday could put the company's plans to

restructure debt and inject fresh capital through a stake sale into doubt.

"We were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit

opinion on the statement," Deloitte Haskin & Sells and Mumbai-based Chaturvedi & Shah, DHFL's

two auditors said in a regulatory filing.

Deloitte and Chaturvedi & Shah noted there were significant deficiencies in the grant and rollover of

unsecured borrowings at DHFL, and that there had also been other irregularities in the granting of

certain loans.

The auditors said DHFL had failed to provide them with sufficient explanation or information about

these matters.

"We are unable to comment on the company's compliance of the covenants in respect of all

borrowings and (the) consequential implications," the auditors said.


Date July 23, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/auditors-to-dhfl-raise-red-flags-around-quarterly-results/70338453

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DHFL in its filing conceded that there were some documentation deficiencies around its unsecured

borrowings and certain other loans, but said it does not believe that would impact the carrying value

of these loans.

The move by the auditing firms comes at a time when the big four PwC, Deloitte, EY and KPMG,

along with the rating agencies, face criticism from the government and regulators for failing to

uncover, or flag the issues at IL&FS in a timely manner.

Last month, Reliance Infrastructure's auditors raised similar red flags around the financials of the

troubled construction, power and defence conglomerate, sending its shares into a deeper tailspin.

The red flags raised around DHFL's results could jeopardise its attempts to restructure its debt. The

company has been asked to provide a detailed resolution plan to its lenders by July 25.

The plan is likely to include rolling over loans, converting debt into equity, seeking additional

working capital and drawing in a new investor, sources have previously told Reuters.

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Uttarakhand to enact law against benami properties

"We will bring a strong law against benami property to control corruption," Chief Minister

said at a function.

Uttarakhand Chief Minister Trivendra Singh Rawat said, here on Sunday, his government would bring

a benami property bill in the Assembly to check corruption.

"We will bring a strong law against benami property to control corruption," Chief Minister said at a

function.

Through this law, the government would confiscate all the benami properties and use them for

development of schools and hospitals, he said. The Chief Minister pointed out that Parliament had

already passed the Benami Transactions (Prohibition) Act, which allowed confiscation of illegal

properties.

Stating that the fight against corruption should be carried out like a "dharam yudh", the Chief Minister

said, "We will not tolerate any corrupt official or person, irrespective of his/her position."

Rawat said his government was committed to provide corruption-free governance and added, the state

government had saved crores of rupees by revising estimates of various projects.

Uttarakhand received Rs 16,000 crore investment proposals within 10 months of the investors summit,

he added.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/uttarakhand-to-enact-law-against-benami-properties/70326597

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Gurugram: DHBVN initiates enquiry against Ardee Infrastructure

The Dakshin Haryana Bijli Vitran Nigam (DHBVN) has initiated an enquiry regarding Ardee

Infrastructure Private Limited after residents claimed that the developer forced them to apply

for 10 KW connections at a price of Rs 10,000/KW for new power connection.

The Dakshin Haryana Bijli Vitran Nigam (DHBVN) has initiated an enquiry regarding Ardee

Infrastructure Private Limited after residents claimed that the developer forced them to apply for 10

KW connections at a price of Rs 10,000/KW for new power connection.

This entire exercise was ―illegal‖, alleged the residents and demanded a refund from the developer.

The complaint was filed in February, by the Resident Welfare Association (RWA), regarding the

fraud committed by the builder. Chaitali Mandhotra, an RWA member of Ardee City, said, ―We

received direct electricity connection from DHBVN in June 2018, thus we got rid of the builder.

However, we are still fighting to get our hard-earned money that the builder forcefully tricked us to

pay. We have demanded DHBVN to direct the builder to refund our money.‖ Another resident,

Prakash Sharma, said, ―For getting a new power connection, the builder asked us pay Rs 10,000/

kilowatt and every household was forced to take a minimum of 10 kilowatt of power connection. We

were not given any option to opt for less power sanction.‖

Despite repeated attempts, all calls and messages made to Ardee management went unanswered.

The DHBVN official said that they have asked the affected residents to provide all details regarding

the fraud. ―We are visiting the society every week to collect data regarding the complaint. We have

asked the residents to share all documents related to their allegations. We will be able to gather all

required elements in the case by the end of this month,‖ a DHBVN official said.

In case the allegations are proved to be correct, the discom will take necessary action, the official

added.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-dhbvn-initiates-enquiry-against-ardee-infrastructure/70327596

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Over 8,900 property tax defaulters owe Rs 3 crore to Chandigarh civic

body

According to the records of the civic body, the defaulters have to pay over Rs 3 crore to the MC.

The property taxbranch of the Chandigarh municipal corporation has sent notices to 8,916 property

tax defaulters till Friday. The authority has now given stipulated time to the defaulters to pay their

property tax, otherwise strict action will be taken against them, which can result to sealing of

properties.

According to the records of the civic body, the defaulters have to pay over Rs 3 crore to the MC.

Along with the list of these residents, their property details, falling in tax ambit has also been prepared

and the same has been sent the defaulters too.

"Since we had given a two-month rebate period to them to pay their property tax, around 60,000

people did not pay the tax money to the authority and only around 45,000 turned up to pay the money.

Therefore, we are left with no option, but to issue notices to them. This covers both northern and

southern sectors of the city."

The rebate period was from April 1 to May 31, where 20% and 10% rebate were given to the

occupants of residential and commercial properties respectively. During this period, the authorities

managed to collect around Rs 30 lakh. Now, those who have failed to avail the benefit of the period

will have to pay the additional money as penalty and interest. "Those, who failed to pay their property

tax will have to pay 25% penalty amount and 12% interest along with on the entire amount of tax to

the authority", said an official.

According to the records of the tax branch of the Chandigarh MC, the city has around 80,000

residential and 26,000 commercial properties. Since the civic body had hired a professional agency to

maintain the records of all properties, falling under the tax ambit, the MC has been preparing the

digital record of all the properties along with their construction areas, location and other related

details.

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Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/over-8500-property-tax-defaulters-owe-three-crore-to-chandigarh-civic-body/70329231

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MREAT quashes MahaRERA order of penalty on Geetanjali Aman

Constructions

The order by the three-member bench exempted the developer Geetanjali Aman Constructions

from registering the project with MahaRERA and also set aside the Rs 30 lakh penalty imposed

on the firm.

In an order that is likely to benefit developers constructing small projects, Maharashtra Real Estate

Appellate Tribunal (MREAT) has quashed two MahaRERA orders penalising a developer for not

registering his project and ruled that a housing project need not come under MahaRERA purview if a

developer‘s project meets either of the two parameters – developable area of less than 500 sq m or less

than 8 flats.

The order by the three-member bench exempted the developer Geetanjali Aman Constructions from

registering the project with MahaRERA and also set aside the Rs 30 lakh penalty imposed on the firm.

The order was pronounced with a 2:1 majority as one of the members recorded a dissenting order,

partly upholding the MahaRERA orders.

The matter pertains to Utkarsh Apartment, a project undertaken by Geetanjali Aman Constructions in

Sadashiv Peth, Pune, in 2013. After RERA came into effect on May 1, 2017, the developer had

emailed the authority seeking advice on whether the project needs to be registered but did not receive

a reply. Later, homebuyers Hrishikesh and Ramesh Paranjape and Balaji and Swapna Samudra filed

complaints with MahaRERA that the developer had not registered the project, though it was ongoing.

MahaRERA summoned the developer for a hearing on December 10, 2018.

In his order, MahaRERA member Bhalchandra Kapadnis noted that Utkarsh Apartment is a

redevelopment project with 38,259 sq m area with 30 flats and 10 shops and the project cost is Rs 10

crore approximately. He ruled that the developer has violated Section 3 of RERA and hence needs to

pay a penalty of 3 per cent of the project cost under Section 59 of RERA.

In March, the developer sought a review of this order, saying that the actual area of the project was

only 382 sq m with 22 flats proposed to be built at a project cost of Rs 3.35 crore. While rectifying the

order, MahaRERA ruled that the project still needed to be registered as the number of flats proposed

is more than eight. It also imposed an additional penalty of Rs 10,000 per day till the project is

registered.

The developer challenged the RERA order before the MREAT, where the developer‘s lawyers


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/mreat-quashes-maharera-order-of-penalty-on-geetanjali-aman-constructions/70322932

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Mustafa Safiyuddin and Jessica Rastogi of ABH Law LLP argued that only one parameter was

required to be met for the project to be kept out of MahaRERA‘s purview – developable area of the

project had to be less than 500 sq m developable, or the number of flats should be less than eight.

They also cited reports of Lok Sabha, Rajya Sabha committees and draft bills prepared before RERA

to highlight legislative intent in this regard.

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Building materials in Kerala at subsidised rates soon

The discount will be made available for houses being constructed under the second phase of the

Life Mission covering people without homes but who own sufficient land, said a statement

issued here on Wednesday.

The state government has entered into an agreement with distributors of construction materials to

provide materials at a subsidised cost to the beneficiaries of Life Mission (LM) housing scheme.

As per the agreement signed with companies dealing with materials, including paint, sanitary ware,

water tank, steel, cement, electrical items, pipe fittings and tiles, the beneficiaries of the scheme will

be able to buy them at a subsidised rate of up to 60%. It would mean a discount of Rs 50,000 to Rs 1

lakh to each beneficiary.

The discount will be made available for houses being constructed under the second phase of the Life

Mission covering people without homes but who own sufficient land, said a statement issued here on

Wednesday.

Life Mission CEO U V Jose signed the agreement with 15 companies, including Sera, Nerolac, Asian

Paints, Malabar Cements, Legrand, V-Guard, Wipro, Hicount and Star Plastics, in the presence of

chief minister Pinarayi Vijayan and industries minister A C Moideen.

For the discount, people need to produce before the agencies documents to prove that they are Life

Mission beneficiaries.

__________________________________________________________________


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/building-materials-in-kerala-at-subsidised-rates-soon/70322995

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Redevelopment plan of Delhi's INA Colony hits roadblock

South corporation officials said the revamp plans for one pocket has been approved, but no

plans for the other have been sanctioned.

The redevelopment of INA Colony, a residential area lying behind the popular INA Market, has, like

others of its sort in different parts of the city, also hit some roadblocks. The main points of contention

are the demand for additional floor area ratio through the amalgamation of the two residential pockets

and the availability of water to cater to the needs of double the current households living there.

The existing 683 dwelling units in the two pockets of the colony houses employees of the Airports

Authority of India (AAI). Pocket A, with its 14.3 acres of space, is separated from Pocket B, spread

over 10.9 acres, by a 60-feet public road. AAI hopes to reap the benefit of a higher FAR by

consolidating the two pockets, but the town planning department of South Delhi Municipal

Corporation has objected to this.

South corporation officials said the revamp plans for one pocket has been approved, but no plans for

the other have been sanctioned. AAI‘s proposal states that the existing buildings built around

Independence, mostly of three and four floors, are in dilapidated condition and proposes to build

1,820 residential units with the new buildings being of varying heights from six to 14 floors.

―AAI‘s plan has the buildings progressively increasing in height, from fewer storeys in the sections

closer to Safdarjung airport to higher structures further away from it,‖ and SDMCofficial said. ―So,

AAI is arguing that since a lot of FAR will be left unused due to smaller buildings or non-construction

of buildings next to the airport, they should be allowed to avail higher FAR in the second portion by

amalgamating the two pockets.‖


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/redevelopment-plan-of-delhis-ina-colony-hits-roadblock/70328388

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The civic official explained why this wasn‘t possible. ―The joining of the two pockets is not possible

as a wide public road passes between them,‖ the official said. ―AAI will then gain the right to close

the road or impose restrictions if we allow the amalgamation sanction the building plans on a

combined plot.‖ The said road leads to important government offices, including DDA‘s Vikas Sadan,

and access to these offices cannot be restricted.

The official also said that ―the security issues related to the existence of high-rise buildings close to

the airport can only be clarified by AAI‖. He added, ―The Transit Oriented Development policy has

not been implemented yet, so FAR benefits allowed by it cannot be availed of in the current

situation.‖

Besides SDMC, Delhi Jal Board too has expressed reservations about INA Colony‘s expansion. DJB

vice-chairman Dinesh Mohaniya claimed the utility did not have the additional water required by the

new residential units. ―DJB is not being consulted before planning these redevelopment projects. We

faced similar problems with redevelopment of Kidwai Nagar and Nauroji Nagar, and DDA‘s land-

pooling policy,‖ he said.

The proposed plan of the redevelopment was submitted to SDMC on July 3 last year, and AAI

responded to the corporation‘s objections in November. In January this year, SDMC asked DDA

whether amalgamation could be allowed and if the TOD policy was applicable, but the land-owing

agency hasn‘t clarified these sticking points. SDMC has re-forwarded AAI‘s proposals to DDA. TOI

tried to contact AAI but it did not respond.

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Telangana government plans integrated townships to decongest

Hyderabad

The municipal administration and urban development (MA&UD) department is reportedly

working on various incentives to give builders and developers who propose townships in the

outskirts of the cities.

In order to decongest the city and promote walk to work policy, the Telangana government will

develop self-contained townships, the new Municipal Act said.

The municipal administration and urban development (MA&UD) department is reportedly working on

various incentives to give builders and developers who propose townships in the outskirts of the

cities.

Officials, who were involved in the preparation of the Act said townships have been incorporated in

the Act to decongest the thickly populated areas and to minimize the distance between work place and

residences.

According to urban experts, the present density of population of the core city is around 11,000 people

per square km and will reach to 20,000 per sq km in the next few years mirroring areas like

Gurugram. This will lead to haphazard growth of the city, experts said.

―The townships can be developed not only in the Hyderabad corporations but also other municipal

corporations in neighbouring areas like Warangal, Karimnagar, Nizamabad and Ramagundam,‖ a

senior official of the MA&UD department said.

―Since the primary goal of these integrated townships is to decongest Hyderabad, the government

should create infrastructure in suburbs," GV Rao, president of Telangana Developers Association

(TDA) said.

____________________________________________________________________


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/telangana-government-plans-integrated-townships-to-decongest-hyderabad/70327673

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BEE to help Andhra Pradesh build energy-efficient housing

This comes while energy minister B Srinivasa Reddy said annual electricity use per household is

projected to increase from 650 KWh in 2012 to 2750 KWh by 2050.

The Centre‘s Bureau of Energy Efficiency (BEE) has agreed to assist the AP government with Indo-

Swiss technology for affordable housing in the state.

According to BEE director-general Abhay Bhakre, the bureau will provide technological support to

housing and financial support to hospitals, model schools and rural water supply for implementation

of efficiency schemes. He said energy-efficient methods will save about 20% of energy compared to

traditional housing methods.

This comes while energy minister B Srinivasa Reddy said annual electricity use per household is

projected to increase from 650 KWh in 2012 to 2750 KWh by 2050.

Financial support for the efficiency programmes is grant-in-aid nature (100% free). The BEE has

agreed to provide technology for the state‘s flagship programme of ‗affordable housing‘ for the poor,

without any financial burden on government, through Energy Conservation Building Code for

Residential Buildings (Residential ECBC).

In a communication to N Srikanth, energy secretary and chairman-managing director to AP Transco,

Bhakre said since AP is a proactive state in energy-efficiency readiness, the BEE wants to promote the

technology aggressively in key sectors.

―While the Centre was planning to build above 2 crore houses in the entire country, the AP

government itself has determined to build lakhs of houses to the poor, which is exemplary. The

technology will directly impact heat loss, natural ventilation, day light availability, reduction in

electricity consumption and electricity bills,‖ the letter read.

Srikanth said huge potentials of the energy efficiency sector still remains untapped in the state.

The BEE has also agreed to support implementation of energy efficiency measures in nine

government teaching hospitals as a pilot project. As part of this, energy efficient air conditioners, fans,

and tube lights would be arranged in hospitals and the expected energy savings for the nine hospitals

would be 1.81 MU.

A workshop will be conducted on residential ECBC in Vijayawada on August 26 and 27.


Date July 22, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/bee-to-help-andhra-pradesh-build-energy-efficient-housing/70326290

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Newspaper/Online The Telegraph

Date July 23, 2019

Link https://www.telegraphindia.com/business/bar-on-emi-paid-by-builders/cid/1695027?ref=more-from-business_business-page

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Newspaper/Online The Millennium Post

Date July 23, 2019

Link http://www.millenniumpost.in/business/housing-sales-down-11-in-q1-364833

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