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03-Sept-2019

CREDAI Bengal Daily News Update | 03.09.19

WEST BENGAL NEWS

_________________________________________________________________________________

Newspaper/Online Millennium Post

Date September 03, 2019

OTHER NEWS

How to make buildings fire-resistant by design

Earlier this year, 100 persons had to be rescued from a commercial complex on busy

Prahladnagar Road as a fire broke out on multiple floors.

In July, a woman and her son lost their lives and seven sustained injuries after a major blaze in their

residential complex.

Earlier this year, 100 persons had to be rescued from a commercial complex on busy Prahladnagar

Roadas a fire broke out on multiple floors.

While building codes and civic permissions check the basics, better intervention can be designed if it

could be predicted how fire would spread in a specific structure.

Patnayakuni Ravi Prakash, who received his PhD degree from IIT-Gandhinagar (IIT-Gn) recently,

studied this problem for his doctoral research titled ‗Fully Coupled Multi-Physics Nonlinear Analysis

of Reinforced Concrete and Steel Structural Systems Subjected to Fire‘ and devised a computational

model to understand the impact of fire on different parts of a given building in hypothetical scenario.

―Structural analysis for fire safety has three primary approaches – empirical methods suggested by

building codes, full-scale fire tests, and scenario-based structural fire analysis framework. The first

method is prescriptive in nature and the second is not practical,‖ said Ravi Prakash.

Newspaper/Online ET Realty (online)


Link https://realty.economictimes.indiatimes.com/news/industry/how-to-make-buildings-fire-resistant-by-design/70943810

―Thus, we focused on the third approach where we took into consideration physical phenomenon as

consequences of factors such as heat transfer, vapour transfer and mechanical deformations.‖

How does the model work? Ravi Prakash and his doctoral guide, Prof Gaurav Srivastava from

Department of Civil Engineering at IIT-Gn, said that the computer model is fed with building plan

along with factors such as building material after which simulations are run to understand how the

structure would behave under different fire scenarios.

―The model can give us indicative simulation on how fire will spread, how it will impact the built

structure and what could be collapse mechanism,‖ said Prof Srivastava.

The researchers said that any fire safety design must incorporate factors such as possible large

deformations, realistic fire scenarios, and temperature-dependent material properties.

___________________________________________________________________

DLC rates to rise by 15% in Jaipur

Though an official notification is yet to be announced, the move is likely to make land more

pricey in many residential areas and trigger a sharp fall in property purchases.

Despite its poll promise of not raising the district lease committee (DLC) rates of land, the Congress

government has decided to hike it by 15% in the city.

Though an official notification is yet to be announced, the move is likely to make land more pricey in

many residential areas and trigger a sharp fall in property purchases.

After the increase, residential DLC rate in C-scheme, which was Rs 52,250/ sq metre, will go up to

Rs 60,080. DLC rate in Vaishali (residential) will now be Rs 34,080 from Rs 27,7750. The

residential rates in Civil Lines would also see an increase of almost Rs 6,590 from Rs 50,550.

According to experts, the rates will not only affect lower-income group, but also make land and flats

out of the reach of many middle and higher- income people.

Many feel that developers and promoters will use this as an opportunity to jack up their property

rates. For example, even after the revised DLC rates, one yard of residential property in Bani Park is

nearly Rs 28,280 whereas the prevailing market rate is Rs 80,000. But promoters may now hike their

rates simultaneously.

After coming to power, UDH minister Shanti Dhariwal had announced that DLC rates would be

reduced. But, nothing has been done in this regard.

The BJP had slashed the rates by 10% in many areas when they were in power in 2018. However, at

a time when the real estate market was facing a slowdown, the BJP government had increased the

rates by 15% to 30% in the city in 2014.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/dlc-rates-to-rise-by-15-in-jaipur/70941301

Andhra Pradesh: BEE to boost energy efficiency in building sector

This sector accounts for about 31 percent of the total electricity consumed at national level now

and is second only to the industrial sector.

The Bureau of Energy Efficiency (BEE) has assured that it would showcase Andhra Pradesh as the

best energy efficient state in building sector, even as the Indo-Swiss Building Energy Efficient

Project (BEEP) Agency has agreed in principle to take up energy efficient buildings as demonstration

projects at state and city level.

According to an official statement here on Sunday, implementing energy efficiency norms in

residential, commercial and institutional buildings will become a great boon to the state helping it to

achieve huge energy and economic savings.

This sector accounts for about 31 percent of the total electricity consumed at national level now and

is second only to the industrial sector.

BEE director Saurabh Diddi, on behalf of director-general of BEE, Abhay Bhakre has assured AP

State Energy Conservation Mission (APSECM) that the BEE was ready to support the state and

provide global technology in the field of energy efficiency.

He said the residential building sector is expected to double in terms of floor area by 2030 from 2017

level. With increasing construction and affordability of air-conditioning, residential buildings would

soon become the highest consumer of electricity, consuming about 37 percent of the total electricity

consumption by 2030, he said.

While the Union government is planning to build nearly one crore houses by March 31, 2022,

Andhra Pradesh government alone has proposed lakhs of new homes to economically weaker and

low income group families in coming years.

If the Indo-Swiss technology through the residential ECBC is used in this house, the beneficiaries

would get energy efficient and healthier homes.

The official statement said adoption of energy efficiency measures would give multiple benefits such

as minimum of 20 percent energy saving as compared to a typical building, improve thermal comfort

(cooling) inside the house, reduce electricity bills, provide natural ventilation and healthier

environment and make the cost-effective housing possible.

"It is estimated to save 125 billion units of electricity for the period of 2018-2030 in building sector

by implementing energy efficiency measures and abate 100 million tonnes of carbon dioxide (CO2)

for the same period," Saurabh said.



Link https://realty.economictimes.indiatimes.com/news/industry/andhra-pradesh-bee-to-boost-energy-efficiency-in-building-sector/70941334

Energy secretary N Srikant emphasized the need for SECM to continuously pursue with BEE and

Indo-Swiss agency to materialize all benefits.AP has a potential to save 14,494 million units with

monetary savings of Rs 8,725 crore in different sectors such as domestic, industrial, agriculture and

street lighting.

____________________________________________________________________________________________________________________

New sand policy in Andhra Pradesh on September 5: Mining minister

Speaking to reporters in Tirupati, Peddireddy lashed out at the previous regime for resorting

to false propaganda against the state government over the issue.

Mining and panchayat raj and minister Peddireddy Ramachandra Reddy on Saturday said the new

sand policy would be announced by the government on September 5.

Speaking to reporters in Tirupati, Peddireddy lashed out at the previous regime for resorting to false

propaganda against the state government over the issue.

―They are resorting to smear campaign against the government because it has cracked the whip

against illegal sand mining activities being carried out by their leaders and their stooges,‖ he alleged.

Clarifying that minister Botsa Satyanarayana never said the state capital would be shifted out of

Amaravati, Peddireddy criticised Jana Sena chief Pavan Kalyan, saying the actor-turned-politician

should self-introspect his comments on the capital issue.

Underlining that the YSRC government under the leadership of chief minister YS Jaganmohan

Reddy is committed to the welfare of the state and will fulfil all promises extended to the people, the

minister added that the government will issue house site pattas to 25 lakh families on the eve of

Telugu new year festival Ugadi next year.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/new-sand-policy-in-andhra-pradesh-on-september-5-mining-minister/70944203

Visakhapatnam Port Trust plans to lease its land for commercial

development

VPT owns 7,618 acres of land in and around Visakhapatnam, including over 100 acres in the

city centre.

Visakhapatnam Port Trust‘s (VPT) plan to lease some of its land in the port city is waiting for a new

policy by the Union ministry of shipping on how to use its surplus land in the city.

VPT owns 7,618 acres of land in and around Visakhapatnam, including over 100 acres in the city

centre. This includes 62 acres in the Saligramapuram neighbourhood and 7 acres in Harbour Park,

overlooking the Bay of Bengal. Harbour Park also houses the top official of the port.

―While we have been waiting for approval from the Greater Visakhapatnam Municipal Corp to

rezone our the land in the city for commercial development under the Public Private Partnership

model, the Union shipping ministry is working on a policy that will allow the major ports to monetise

their land. We are yet to receive the approval from GVMC, though the permission was sought earlier

this year,‖ a senior VPT official said on Monday.

The official said that under the proposed Union shipping ministry‘s policy, it would become easier

for the 12 major ports, which are supervised by the ministry, to lease their land for commercial

development. The official however did not disclose when the land-use policy is expected to be

announced.

Under the PPP model, the land would be leased to real-estate developers to build commercial

buildings. The land was to be leased for the construction of office blocks or shopping malls.

Developers offering the highest lease fee to VPT were to be given the lease.

―Apart from Harbour Park and Saligramapuram, VPT also owns about 10 acres of land in

Malkapuram. VPT wanted to monetise the land by leasing it out, but somehow there has been a delay

in getting approvals from the local civic authorities,‖ the official said.

He surmised that the YSRCP administration, which assumed office in May, was probably reviewing

the land-use policy in the state as well, as it was doing with infrastructure projects. Another reason,

not linked to government policy, was that the real-estate market in the port city, like in other cities,

was in a slump because of declining demand.

VPT had hired a Vadodara, Gujarat-based land valuation company in 2017 to survey the land the



Link https://realty.economictimes.indiatimes.com/news/commercial/visakhapatnam-port-trust-plans-to-lease-its-land-for-commercial-development/70944492

port owned and suggest measures to get optimum value out of its landholdings.

The report had said at VPT had not utilized 50% of the 7,618 acres of land controlled by the port

trust in and around the city. The report had also highlighted the availability of the 100 acres of land

which could be used for commercial development.

The report said that VPT had leased out 3,612 acres of land to industrial use. Another 1,518 acres is

being used for infrastructure like railroads, docks, utilities and buildings. About 912 acres of land

included hills, vegetation and water bodies.

Finally, a total extent of 1,576 acres of land was vacant, including land in Lankelapalem and

Mulakuddu villages. Lankelapalem is about 40 km from the port, on the road to Anakapalle, while

Mulakuddu village is near Bheemunipatnam, on the coastal road.

___________________________________________________________________

Can REIT rule loophole pull down the returns?

It was more than a decade before the first REIT or an InvIT was available for investors since

the Securities and Exchange Board of India came up with the first draft around 2006.

Few other financial products took as much time between the first draft of regulations and trading on

stock exchanges as the Real EstateInvestment Trusts did.

It was more than a decade before the first REIT or an InvIT was available for investors since the

Securities and Exchange Board of India came up with the first draft around 2006.

It is always the conflict between the regulators‘ efforts to protect investors which often is confused

with protecting investments, and the entrepreneurs‘ need for flexibility to operate and ability to

extract the maximum out of the investor that complicates rule-making.

After wrangling over details, REITs and InvITs are a reality. A couple of securities such as Embassy

Office and IRB InvIT Fund are being traded on stock exchanges.

In its simplest form, a REIT or an InvIT is an entity that owns physical assets such as office

premises, hotels and shops, or roads that earn regular income. The rent and the toll collected by

companies that own such assets are parked in the trusts to be distributed to investors in the Trust.

Returns depend on the rental and toll generated by those assets. There can be many individual

companies under these trusts that have their own profit & loss account and a balance sheet. These

companies would pay dividends or interest out of their retained earnings to the trusts which is

distributed to investors.

Regulation says that at least 90 per cent of the ‗distributable cash flows‘ of the ‗Trust‘ have to be

paid to REIT or InvIt investors.

―The net distributable cash flows of the Embassy REIT are based on the cash flows generated from

the Embassy REIT assets,‖ Embassy Office said in its offer document.

―In terms of the REIT Regulations, not less than 90 per cent of the net distributable cash flows of the

Asset SPVs are required to be distributed to the Embassy REIT/ Holdco, as the case may be, in

proportion of their shareholding in the Asset SPV.‘‘ Given the structure, the rule stipulating 90 per

cent payout is perfect for investors looking for steady returns. But there‘s a catch! What if Trusts

borrow like companies to build more assets, and to repay loans like Embassy Office did in June by

raising ₹3,000 crore in debt at 9.4 per cent ?

Investors have factored in a yield anywhere between 7.4 per cent and 8.3 per cent , as per ETIG



Link https://realty.economictimes.indiatimes.com/news/industry/can-reit-rule-loophole-pull-down-the-returns/70946936

estimates at the time of IPO. Returns could climb if rentals go up as it renews leases. But its

borrowings could also lead to a dip in returns.

The REIT may buy assets with borrowed money and that could raise the value and returns. What if

the loan structure, where the borrowed money would be paid after three or five years as in bullet

loans? If the REIT keeps paying 90 per cent of the ‗distributable cash flows‘ to investors, would it

have built a buffer to repay? What if income from new assets are delayed? When 90 per cent of its

disposable cash flow is paid out, it may have to set aside more from income in the future to service

debt if the new asset doesn‘t pay for itself. As the Trust dips in, it could diminish the payout to

subscribers of the Trusts.

The REIT rule may need a change to be on par with the companies accounting standards which take

distributable ‗profits‘ instead of ‗cash flows.‘ The distributable profits create a buffer to pay for

liabilities.

Two options are available to avoid a sudden shock of lower returns to investors, especially the retail

ones.

Either ban borrowing at the Trust level and let borrowings happen at individual asset-level registered

as limited liability companies or partnership. Or amend the rule to pay out only the distributable

‗profits‘ instead of distributable ‗cash flows.‘ If not done, Sebi can be sure of investor complaints

that they were fooled. To be sure, there‘s enough protection against the Trust building up debt like it

can‘t exceed 49 per cent of value or need unit-holder approval to exceed 25 per cent . Regulations are

not cast in stone but evolve. It is better to tweak in early days before it gets too big to change.

CHANGE IN NORMS

REIT rule may need a change to be on par with the companies accounting standards which take

distributable ‗profits‘ instead of ‗cash flows

__________________________________________________________________

Is your property mortgaged by builder to bank?

Since the builder did not repay the loan, the bank served notices to the residents.

‗Ignorantia juris non excusat‘ is an old saying in law but this has more relevance in real estate today.

What does this really mean? It means that ignorance of law is not an excuse and you cannot escape

from your responsibility by saying you did not know the law. In fact, it is harmful not to know the

law.

Recently, more than 200 residents living in a Noida housing society - Gardenia Gateway – were

served with notices by the Union Bank of India asking them to vacate their flats as these had been

mortgaged by the developer to the bank for a loan of Rs 78.45 crore.

Since the builder did not repay the loan, the bank served notices to the residents. A builder cannot

sell flats he has mortgaged to a bank. Since the sale of already mortgaged flats is illegal therefore,

banks may take possession of such flats to recover dues.

How to check?

In the past, there have been many cases where builders have pledged the entire property with banks

to raise money, only to disappear, leaving behind unfinished projects. You are required to do due

diligence before and after the purchase till the time of registration of your property.

You can avoid this situation by just being a little careful. You need to follow three simple steps to

find out whether your property is mortgage-free or not. ―You can check the records in the registrar

office. You can go to the website of the Ministry of Corporate Affairs and click the link

(http://www.mca.gov.in/MinistryV2/master+details.html) to find out about the company‘s financial

liabilities. Thirdly, this option may not be viable to buyers but they can issue a public notice saying

that anyone can raise an objection on the property they plan to buy,‖ says lawyer Abhilash Pillai,

partner, Cyril Amarchand Mangaldas.

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI),

notified on March 31, 2011, to help you find whether the property you are buying is mortgaged or

not. This company was incorporated by the Department of Financial Services under the Ministry of

Finance.

CERSAI acts as a central registry that keeps records of all properties against which loans have been

sanctioned. You can access the central registry‘s database on their official website -

https://www.cersai.org.in/CERSAI/JSP/index.jsp. Details such as registration number or the address

of the property will help you access information on its loan status.



Link https://realty.economictimes.indiatimes.com/news/residential/is-your-property-mortgaged-by-builder-to-bank/70946813

Role of buyer or society body

You can also ask for an NOC from the builder that there are no dues on the society or flats sold by

him. The same can be sought by the society body before taking over charge from the builder. One

cannot say that they did not know that the builder has taken a loan on their property. It is your

responsibility as a buyer to investigate and check whether your property is free of all legal defects or

not.

―Sometimes the mortgage loan would be on an unregistered deed hence, it escaped the entry in the

encumbrance certificate and you or the lenders could not find an adverse report to this effect in their

search. It is mandatory to share mortgage details applicable to all loans facilitated after March 31,

2011. The mortgage database is made public by CERSAI and one can verify the records of any

property by visiting the CERSAI online portal. The SARFAESI Act was drafted with the purpose

that no one can take multiple loans on the same property. In case of violations, buyers can file a

complaint for breach of trust and also go to the court to defend their rights,‖ explains T Kalaiselvan,

a senior advocate in Vellore.

How to handle the problem?

Serve a notice to the builder asking him to clear the bank‘s dues. If that does not work, file a police

complaint under Section 420 of the Indian Penal Code (IPC). You can also seek recovery of the

amount paid to builder declaring that the sale deed signed with you was illegal.

―Section 55 of Transfer of Property Act lays down a mandate - The seller is bound— (a) to disclose

to the buyer any material defect in the property 3 (or in the seller‘s title thereto] of which the seller is,

and the buyer is not aware, and which the buyer could not with ordinary care discover. As per this

section, a builder is supposed to disclose any defect in the title of the property. You can file a

criminal charge under section 420 of the IPC or you can approach the court and claim compensation.

You can also go to RERA in case the project comes under its ambit,‖ suggests Pillai.

Sale deed

It is important not be in a hurry in signing any document with the builder. Experts suggest that it is

important to read carefully and understand the sale deed and all the clauses given there.

―You must check whether the sale deed has all the details related to the mortgage. The document

must make a detailed note of how the loan is to be settled. If such details are missing, you must get

them included in the sale deed. It is not easy for a homebuyer to check all these details that is why

legal experts need to be consulted,‖ says Aditya Parolia, advocate, Supreme Court.

The seller can use the sale proceeds to prepay the loan and the bank can release the property‘s

original papers. In fact, the homebuyer can also take over the loan. Since a home loan is not

transferable, therefore, the homebuyer will have to submit his income and KYC documents.

Making full payment to the builder is not the only responsibility a homebuyer has, he must also

check all the documents carefully and make sure they are not legally defected.

Property prices in Greece rise by 7.7% in Q2 2019

Property accounts for a large chunk of household wealth in Greece, where the home ownership

rate is 80%, above the EU average of 70%.

The recovery in Greece's housing market gained speed in the second quarter with prices increasing at

the strongest pace in more than 12 years, helped by an expanding economy and growing foreign

interest, central bank data showed on Monday.

Property accounts for a large chunk of household wealth in Greece, where the home ownership rate

is 80%, above the EU average of 70%.

Apartment prices rose 7.7% in the second quarter compared with the same period a year earlier, Bank

of Greece data showed, accelerating from a 1.3% increase in the first quarter of 2018.

More specifically, prices rose by 11.1% year-on-year in Athens, where home-sharing platforms such

as Airbnb and a "golden visa" programme - a renewable five-year resident's permit in return for a

250,000-euro ($285,000) investment in real estate - have grown very popular.

Greek house prices fell 42% between 2008, when the country's protracted recession began, and the

end of 2017. A similar trend is unfolding in Greek prime office prices, which rebounded 7.0% last

year. "Housing prices rose 3.5% quarter-on-quarter, a seventh consecutive quarter of growth. Year-

on-year it was the strongest pace in 12 and a half years," said National Bank economist Nikos

Magginas.

The uptrend was seen in all market segments - including old and newly built apartments - and in all

regions, though prices in the capital led the way. "Increasing demand from residents and non-

residents, buoyed by positive macroeconomic trends and the first reduction in real estate taxation in a

decade, supports the uptrend," he said.

The Greek market had been hurt by property taxes imposed to plug budget deficits, tight bank

lending and a jobless rate still around 17.2%, the highest in the 19-nation euro zone. But economic

prospects have improved since 2015 when Greece signed up to a third bailout package worth up to

86 billion euros ($107 billion).

The country emerged from its latest bailout in August last year and is now relying on markets to

cover its financial needs. Greece's 180 billion euro economy expanded in January-to-March, but at a

slower annual pace than the quarter before, mainly driven by consumer spending and a pick-up in

investments.



Link https://realty.economictimes.indiatimes.com/news/industry/property-prices-in-greece-rise-by-7-7-in-q2-2019/70948631

___________________________________________________________________

BMC wards, residents eye disputed 5,000 sq metre plot in Chembur

The plot is currently being used as a dry waste segregation point by one of the wards and a

dumping ground for old furniture and vehicles.

A 5,000 square metre plot in Chembur (West), whose ownership is in dispute, has become a bone of

contention between two BMC wardsand residents of buildings nearby, who all want to use it for their

own purposes.

The plot is currently being used as a dry waste segregation point by one of the wards and a dumping

ground for old furniture and vehicles.

The land is question is on the border between M West and N Ward. The Saltpan Commission and the

Chheda Group both claim ownership of it and the case is currently in court. Being left unused for

long, it has been encroached upon, with illegal shanties coming up all around its boundary.

Last Saturday, local residents spotted a truck dumping municipal waste on the plot. Upon making

enquiries, they learned that the truck had arrived from the office of the neighbouring N Ward, whose

jurisdiction starts just where the plot ends.

―One can‘t blame the slum dwellers. They are victims of unfortunate circumstances. However, this is

unacceptable behaviour on the part of civic officials,‖ said Richard Chacko, a long-term resident of

Angelore Society.

An official from M West confirmed that the truck belonged to the other ward. N Ward official

(Ghatkopar East) Dr Bhagyashree Kapse acknowledged the incident, but called it a

misunderstanding. ―The plot has been used as a segregation point for dry and wet waste for both

wards for years. Being new, the ward officer of M West didn‘t know about this,‖ she said.

However, Chacko said there was no garbage on the plot until a few months ago. ―Besides, this has

been a residential area for as long as I can remember. If the BMC wants to use it for garbage

segregation, should they not take a no-objection certificate from residents ?‖ he asked.

Another resident, Ophelia Craspo, said the plot also serves as a drinking and gambling spot. ―This is

a serious threat considering there is a school right opposite. We see liquor bottles all around ,‖ she

said. Craspo, who is a teacher in the school, said school authorities were worried that exposure to

such activities would affect kids.

The Pestom Sagar Citizens Forum recently wrote to the BMC asking for permission to beautify the

land with its own funds. ―Instead of lying unused, it can be used as a parking spot. This will also

clear up the roads,‖ said Mohini Thakare, general secretary of the forum.



Link https://realty.economictimes.indiatimes.com/news/industry/bmc-wards-residents-eye-disputed-5000-sq-metre-plot-in-chembur/70947988

The ward officer of M West, Dr Prithviraj Chavan, did not want to comment on the garbage dumping

incident. However, he said the plot could be used for garbage segregation.

―We have written to the collector and the Saltpan Commission to allow us to build a shed on one part

of the land so that segregation operations can be conducted. If needed, we will also help the

commission protect its land from encroachment by building a wall or fence around it,‖ he said.

_________________________________________________________________

Over 14,000 Amrapali buyers told to re-submit ownership documents

It has already been more than a month since the Supreme Court directed Noida Authority to

execute the agreements for residents of Amrapali.

Residents of Amrapali Sapphire, who are awaiting registry of their flats, have been asked to produce

a fresh set of documents to help authenticate ownership of their houses.

It has already been more than a month since the Supreme Courtdirected Noida Authority to execute

the agreements for residents of Amrapali.

But the court receiver, R. Venkatramani, had earlier said that examining the authenticity of buyers

and the right proceedings might need more time than what the court might have planned initially.

The entire registration process for 14,000 buyers of Amrapali was supposed to have been completed

by August 23 in keeping with the SC order dated July 23.

The residents said on Monday that the first set of documents had not been accepted by the court

receiver.

―We will now have to deposit the allotment letter, builder-buyer agreement, possession letter and no-

objection certificate. So, a fresh set of documents for authentication of ownership will now have to

be furnished,‖ said Ravi Kant, a resident of Sapphire phase 1.

After the documents are examined, a tripartite agreement is expected to be signed by the Noida

Authority, an appointed signatory by the court receiver and the buyers.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/over-14000-amrapali-buyers-told-to-re-submit-ownership-documents/70953271

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