23-July-2019 - CREDAI Bengal Homes
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23-July-2019
CREDAI Bengal Daily News Update | 23.07.19
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
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
Page 2 of 28
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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Page 3 of 28
Newspaper/Online ET Realty (online)
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
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.
Page 4 of 28In 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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Page 5 of 28Newspaper/Online ET Realty (online)
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
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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Page 6 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-to-
pronounce-verdict-in-amrapali-case-today/70338597
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.
Page 7 of 28Similar 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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Page 8 of 28Newspaper/Online ET Realty (online)
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
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.
Page 9 of 28Merely 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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Page 10 of 28Newspaper/Online ET Realty (online)
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
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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Page 11 of 28Newspaper/Online ET Realty (online)
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
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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Page 12 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/nclat-reserves-
order-on-extension-of-resolution-process-of-jaypee/70333695
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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Page 13 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/auditors-
to-dhfl-raise-red-flags-around-quarterly-results/70338453
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.
Page 14 of 28DHFL 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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Page 15 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/uttarakhand-to-
enact-law-against-benami-properties/70326597
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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Page 16 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-
dhbvn-initiates-enquiry-against-ardee-infrastructure/70327596
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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Page 17 of 28Newspaper/Online ET Realty (online)
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
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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Page 18 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/mreat-quashes-
maharera-order-of-penalty-on-geetanjali-aman-constructions/70322932
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
Page 19 of 28Mustafa 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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Page 20 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/building-
materials-in-kerala-at-subsidised-rates-soon/70322995
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.
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Page 21 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/redevelopment-
plan-of-delhis-ina-colony-hits-roadblock/70328388
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.‖
Page 22 of 28The 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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Page 23 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/telangana-
government-plans-integrated-townships-to-decongest-hyderabad/70327673
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.
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Page 24 of 28Newspaper/Online ET Realty (online)
Date July 22, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/bee-to-help-andhra-
pradesh-build-energy-efficient-housing/70326290
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.
Page 25 of 28____________________________________________________________________
Page 26 of 28Newspaper/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
________________________________________________________________________________
Page 27 of 28Newspaper/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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