04-july-2019 - credai€¦ · sale of homes in the first half of 2019 increased by 33% against the...

04-July-2019

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CREDAI Bengal Daily News Update | 04.07.19

Kolkata real estate records revival with sales soaring by 33% in first

half of 2019

Sale of homes in the first half of 2019 increased by 33% against the corresponding period last year

with affordable and mid-segment homes driving growth to offset sluggish demand in premium

apartments.

According to the latest report from global real estate services firm, JLL, while sales grew by a

modest 5% against the second half of last year, it was much better than what the industry had

experienced in the first half of 2018. The realty firm expects high demand in the July-December

period when sales have traditionally been higher than January-June. The share of affordable and mid-

income housing priced up to Rs 75 lakh made up nearly 40% of sales in the city.

Though sales have been increasing steadily since 2017, when the impact of demonetisation in

November 2016 had dealt a body blow to the real estate market, the rollout of General Sales Tax

(GST) and subsequent changes made to the rates and thereafter compliance to Housing Industry

Regulatory Authority under the West Bengal Housing Industry Regulatory Act (HIRA), 2017

affected sales.

Industry trackers believe sales would have been higher but the Lok Sabha elections and uncertainty

over the constitutional validity of HIRA led to developers adopting a restrained approach.

Newspaper/Online The Times of India

Date July 03 , 2019

Link https://content.magicbricks.com/property-news/kolkata-real-estate-news/kolkata-real-estate-records-revival-with-sales-soaring-by-33-percent-in-first-half-of-2019/107248.html

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Now, with the policies in place, realtors and developers hope the market will revive to the pre-

demonetisation level.

"Series of reforms and rising buyers' interest in the segment have propelled the sector to align itself

to the market demand. Home buyers continue to focus on ready to move-in projects and projects

nearing completion. As a result of this shift in buying preference, developers are also focused on

completing their ongoing projects," said JLL India CEO & country head Ramesh Nair.

However, the high lead time for selling projects remains a matter of concern. The situation would

have been far more difficult had the launch of projects not been limited.

"The slowdown in launch of projects helps the sector balance the demand-supply scenario. This will

act as a cushion and help the sector revive," said Siva Krishnan, head of residential services,

developer solutions and strategic consulting.

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Over 500 run-down buildings in Hyderabad pose grave risk to

occupants

As many as 519 dilapidated buildings in the city could soon become death traps for occupants,

commuters and nearby residents, warn experts.

Goshamahal tops the charts with 151 dilapidated structures, followed by Begumpet at 104 and

Malakpet with 31 such buildings. "Is GHMC waiting for a tragedy to happen? Why can't the

authorities pull them down," questioned Monica Nambiar, a resident of Secunderabad, pointing out

towards Monda Market.

GHMC identified 761 structures and razed 130 of them, besides renovating 112. The GHMC

Charminar zone office (Sardar Mahal) is also in bad shape. "GHMC should first renovate its zonal

office in Charminar as it is frequented by people," said AIMIM corporator of Akbarbagh Syed

Minhajuddin.

Pratap Bhati from Begum Bazar (Goshamahal circle) said structurally unfit buildings are a threat to

everybody in addition to those living in them. "Hundreds of lives are at stake as the risk posed by

these structures in unimaginable," said Bhati. According to senior GHMC officials, the structurally

unfit buildings are being identified and demolitions have been taken up.

"Joint inspections by assistant city planners and executive engineers to identify such buildings have

been completed. After serving notices, we will be bringing them down," said K Srinivasa Rao,

director, town planning, GHMC.


Date July 03 , 2019

Link https://content.magicbricks.com/property-news/hyderabad-real-estate-news-industry-news/over-500-run-down-buildings-in-hyderabad-pose-grave-risk-to-occupants/107268.html

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GHMC commissioner M Dana Kishore on July 1 said that apart from razing old buildings, they

would keep an eye on old walls. Tenants refusing to vacate, political interference and people

approaching courts are some of the stumbling blocks faced by GHMC when officials set out to raze

old buildings.

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About 70% apartments in Bengaluru don't get Cauvery water

The burgeoning number of apartments in Bengaluru has thrown up a huge challenge for the state

government — meeting water needs of the residents.

Documents accessed by TOI show only 22,000 apartments, each with 20 flats or more, in the city

get Cauvery water from Bangalore Water Supply and Sewerage Board (BWSSB).

According to developers and builders, there are about 75,000 small and big apartments in the city.

This means that about 70% of apartments are either dependent on borewells or private tankers for

their water needs.

Most apartments that lack Cauvery water supply are located in Banaswadi, Bellandur, Varthur,

Mahadevapura, Whitefield and Hennur, among others. The Hebbal-KIA corridor in north Bengaluru,

where a huge number of apartments have come up in the last few years, is another stretch of concern.

With groundwater table fast depleting, residents of these units are paying through their nose to get

water.

Recently, alarmed by the water crisis, deputy chief minister G Parameshwara said the government is

planning to deny permission to build new apartments for the next five years.

BC Gangadhar, chief engineer, maintenance, BWSSB, said the board is providing Cauvery water to

about 575 sq km of the 709 sq km under BBMP limits. "Most of the areas in eastern and northern

periphery of the city, primarily the 110 villages added to the city limits, are yet to get Cauvery

supply. Not just apartments, even individual houses here don't have Cauvery water connections. The

point to be noted here is that many of the apartments have come up in east and north Bengaluru areas

owing to employment and other opportunities here," he added.

'Govt and citizens should act together'

Srikanth Narasimhan, general secretary, Bangalore Apartment Federation, said when it comes to

dealing with water crisis, there is a need for the government to get its act together. "The situation we

are in is mainly due to the government allowing so many apartments to come up without any guiding

principles. Though rain water harvesting is mandatory, the implementation is poor. There is a need to

create more awareness and be stricter with enforcement. The second thing is fixing pilferage of

water, which the government should be more serious about. Finally, the government should go for

decentralised sewage treatment plants and reuse this water for non-potable purposes," he added.

Srikanth said: "We from the federation are encouraging apartments to go for recharge wells, harvest

more rain water, have efficient STPs, instal aerators for taps and reuse water from RO purifiers. We

are also doing campaigns such as the half-bucket challenge. If the government and citizens can fill

these gaps, we can, in fact, reduce our dependence on Cauvery river itself."


Date July 03 , 2019

Link https://content.magicbricks.com/property-news/bangalore-real-estate-news/about-70-percent--apartments-in-bengaluru-dont-get-cauvery-water/107267.html

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Just 10% buildings in Mumbai have mandatory storage facilities

Despite the PM's appeal to save every drop of rain water, not more than 10% of properties or housing

societies in India's financial capital have a rooftop water conservation mechanism or sumps (pits or

hollows in which water could collect) in place. And even the BMCdoes not know how many of the

existing groundwater recharging sumps are functional as mandated by law.

The norm for having rainwater harvesting sumps attached to groundwater recharge pipes and a

rooftop collection system in a building or property was introduced on October 1, 2002. "No society

has been slapped with a Rs 1,000 per year fine for not having such a system. This despite the legal

provision for such a fine," said a BMC official. There is no machinery to issue notices and collect

fines, the official added.

"Since 2002, roughly 4,000 to 4,500 new building proposals or occupation certificates have been

approved with such systems in building plans. About 1,000 old societies also came forward to have

these plans on their own, including 150 of BMC's own properties," said the official.

Mumbai has nearly 35,000 buildings/housing societies and nearly 10,000 to 15,000 independent

bungalows or commercial installations. Given these roughly 50,000 buildings or properties, the

number of those which have developed or are developing a rainwater harvesting mechanism come to

only around 10%, officials said.


Date July 03 , 2019

Link https://content.magicbricks.com/property-news/mumbai-real-estate-news-industry-news/just-10-percent-buildings-in-mumbai-have-mandatory-storage-facilities/107269.html

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As BMC does not have machinery to do checks and impose fines, the purpose of the law is defeated,

said RTI activist Sureshkumar Dhoka. Ramesh Prabhu, president of Maharashtra Societies Welfare

Association, said it is time the government ensured BMC sends reminders or imposes fines with

retrospective effect. "It is sad that only punitive actions create awareness ," he noted.

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Realty counts on energisers for quick recovery

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Newspaper/Online The Telegraph

Date July 04 , 2019

Link https://www.telegraphindia.com/business/realty-counts-on-energisers-for-quick-recovery/cid/1693734?ref=business_business-page

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Indiabulls to buy back debt

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Newspaper/Online The Telegraph

Date July 04 , 2019

Link https://www.telegraphindia.com/business/indiabulls-to-buy-back-debt/cid/1693735?ref=more-from-business_business-page

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RBI to regulate housing finance companies: Sources

In late 2015, the RBI started a similar review of bank assets amid allegations that lenders were

hiding the extent of the bad debts on their books.

India will soon give Reserve Bank of India (RBI) power to regulate housing finance

companies (HFCs), which will almost certainly lead to the lenders facing stringent asset quality

reviews, two sources with direct knowledge of the matter said.

That could have major repercussions for about 80 HFCs, the largest of which include Indiabulls

Housing Finance Ltd, Housing Development Finance Corporation and Dewan Housing Finance

Corporation, leading to them facing unprecedented scrutiny and the potential for major financial

penalties and restriction on their activities if improper practices are discovered.

In late 2015, the RBI started a similar review of bank assets amid allegations that lenders were hiding

the extent of the bad debts on their books.

During multiple asset quality reviews of banks, the RBI revealed a plethora of areas where lenders

were under reporting their bad loans. It initially led to financial penalties for some lenders and

eventually fed into decisions to impose tougher restrictions on their loan books while their bad debts

remained high.

The housing finance companies, which are part of the broader shadow banking sector known as non-

banking finance companies (NBFCs), are currently regulated by the National Housing Board, and the

central bank has no direct authority over them.

The other NBFCs are very loosely regulated, with various regulators including the RBI having some

role but no one being fully accountable.

The RBI's oversight of HFCs will be a step towards the Indian authorities getting a firmer grip on the

risky shadow banking sector that will help to contain any systemic problems.

A series of debt defaults last year by major infrastructure financing group, Infrastructure Leasing and

Financial Services (IL&FS), showed that much of the sector was highly leveraged.

"There will be substantial improvement in regulation and supervision of all entities including NBFCs

and HFCs once RBI has direct control over the housing finance firms," one of the sources said.

On Monday, Finance Minister Nirmala Sitharaman said the government was considering giving more

powers to the central bank to regulate the struggling shadow banking sector, though she was not

Newspaper/Online ET Realty(online)

Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/rbi-to-regulate-housing-finance-companies-sources/70058965

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specific.

A government official, who did not wish to be named, was more explicit in comments on

Wednesday. "The government is planning to give more regulatory powers to the RBI to regulate

housing finance companies. Right now they do not have that."

One of the sources said the central bank sought more regulatory powers so that it could be more

effective in handling liquidity crunches in the sector, which have hit lending and the overall

economy.

The Reserve Bank of India declined to comment on the development.

As credit rating firms have downgraded the ratings of some of the housing finance companies it has

stoked credit-risk fears and hurt their ability to raise funds for more lending. That in turn has made it

difficult for consumers and small businesses to get loans and hurt car and motorbike sales, among

other things.

The failure of a large Indian non-banking financial company could cause as much damage as the

collapse of a big commercial lender, the RBI said last week, stressing the need for greater

surveillance of these firms.

Both the government and RBI have declined to provide direct financial support to financially

troubled NBFCs so far. But having regulatory powers over the HFCs might make it easier for the

RBI to open credit lines for these firms if necessary, two of the three sources said.

The National Housing Board was controlled by the RBI before the government took over the housing

finance regulator on April 29. Shifting the regulatory powers to the RBI will, however, take place

later in the year as it will require a change to the RBI Act, the government official said.

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Bank can’t be dropped from Orbit flat possession case: SC

The case dates back to 2017, when five flat buyers approached the HC alleging that the builder,

Orbit Corporation, now in liquidation, had in collusion with Axis Bank, taken a loan of about

Rs 150 crore and mortgaged the property in 2013, after selling them flats since 2009.

Purchasers of duplex flats in the 30-storey Orbit Haven on Napean Sea Road were relieved as the

Supreme Court held that their two-year-old suit for possession of flats or refund of money with

damages be heard against both the builder and bank, before the Bombay high court. The SC undid an

October 2018 relief to Axis Bank by the HC, which had dropped the suit against it. The 12 duplex

flats in Orbit Haven are priced between Rs 12 crore and Rs 25 crore.

The case dates back to 2017, when five flat buyers approached the HC alleging that the builder, Orbit

Corporation, now in liquidation, had in collusion with Axis Bank, taken a loan of about Rs 150 crore

and mortgaged the property in 2013, after selling them flats since 2009.

The bank, invoking provisions of the Securitisation Act, said the suit can’t proceed against it before

the HC, but only against the builder. But the SC held that the suit cannot be dropped only against one

party. Either it gets dismissed against all parties or none, held the SC bench of Justices A M

Khanwilkar and Ajay Rastogi in its judgment on Monday. The SC restored a 2017 order of Justice S

C Gupte of the Bombay HC and set aside the 2018 judgment of an appeal bench of Justices Naresh

Patil and Girish Kulkarni, which had dismissed the suit against the bank.

Three petitions, filed by Padma Bhatt, M P Aggarwal and Manisha Saraf through advocate Satyan

Vaishnav before Justice Gupte, had alleged lack of due diligence by Axis Bank before advancing a

loan to Orbit. They claimed to have paid over Rs 200 crore collectively to the builder. The bank,

through its law firm Cyril Amarchand Mangaldas, denied accusations of alleged collusion and argued

that it can’t be faulted as the flat sale agreements were not registered. The bank also argued that the

suit cannot proceed against it, as it was not even an essential party to the dispute. . The bank said the

Securitisation Act bars the HC from roping the bank into the buyers’ claim before it.

Justice Gupte, in 2017, held that the suit can’t be dropped against just one party and observed that the

“allegations of collusion between some of its officers and Orbit spells out a case for trial”. The bank

appealed before the division bench, which set aside Justice Gupte’s order and held that there was “no

case of fraud by builder or bank” and directed the buyers, if aggrieved, go to debt recovery tribunal

as the property was mortgaged. Four of the five purchasers then went to the SC, which allowed their

appeal.


Date July 04 , 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/bank-cant-be-dropped-from-orbit-flat-possession-case-sc/70065697

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K Raheja Corp set to acquire Citibank’s former HQ in Mumbai

Several developers and global funds had shown interest in buying the standalone iconic

building spread over around 1.10 lakh sq ft.

Real estate developer K Raheja Corp, backed by US private equity major Blackstone Group, is set to

acquire Citibank India’s erstwhile headquarters in Mumbai’s business district Bandra-Kurla Complex

(BKC) for over Rs 400 crore, people with direct knowledge of the development said. “Citibank on

Tuesday has intimated its decision to all the concerned entities,” one of the persons said. “K Raheja

Corp’s current bid is around Rs 400 crore and the same is expected to be revised now.”

Several developers and global funds had shown interest in buying the standalone iconic building

spread over around 1.10 lakh sq ft. The 10-storey building housed Citibank India’s headquarters until

the bank shifted the same in 2012 to First International Finance Centre (FIFC) in the vicinity.

In 2017, Blackstone had picked up around 15% stake in K Raheja Corp’s commercial real estate

portfolio of 20 million sq ft across Mumbai, Navi Mumbai, Hyderabad and Pune. Once acquired, the

Citibank property is also expected to be brought under this portfolio. ET’s email queries to K Raheja

Corp remained unanswered until the time of going to press. Citibank and transaction advisor CBRE

India declined to comment for the story.

Blackstone has emerged as the most aggressive institutional investor in India’s real estate sector. It

owns the country’s biggest portfolio of income producing office assets and has committed $5.3billion

across the key property markets.


Date July 04 , 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/k-raheja-corp-set-to-acquire-citibanks-former-hq-in-mumbai/70065728

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The erstwhile Citi headquarters was one of the earlier buildings to come up in BKC business district.

Citibank had attempted to monetise the property a few years ago, too. Among other options, the bank

was exploring redevelopment of the building, said property consultants. However, the response

remained lukewarm given the property market scenario then and most of the bids were received from

family offices and not from developers.

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OCs of 100 homes in Gurugram’s upscale areas cancelled

When an OC is cancelled, water, power and sewage connections stand withdrawn from the

building.

The department of town and country planning on Wednesday cancelled occupation certificates (OC)

of around 100 houses in DLF areas, Sushant Lok and Palam Vihar for violation of building norms

and illegal commercial use. It has also asked the tehsildar of Gurgaon not to register such properties

“without proper verification of records”.

When an OC is cancelled, water, power and sewage connections stand withdrawn from the building.

A DTCP team cancelled the OCs of 100 houses in DLF, Sushant Lok and Palam Vihar after it found

that their owners violated sanctioned plans. The move followed a survey of the houses that got OCs

since January this year under the self-certification scheme. Now, the total number of properties that

lost their OCs in the past six months is 165. District town planner (planning) RS Batth told TOI the

department has shared with the tehsildar a list of properties that no longer possess OCs. “We have

requested him to update the same in his records so that the registration of these properties is not

done,” he said.

“The move is likely to check the menace as the property owners will not be able to sell the same

without registration,” he added.

Earlier in May, the planning wing of DTCP had cancelled occupation certificates of

38 residential buildings on Golf Course Road and in Sushant Lok 1 after a team of officials found

that illegal commercial activities were going on in those properties.

Officials of DTCP said these residential buildings were being used to run commercial activities,

causing loss to the state exchequer to the tune of several crores every year. As per rules, commercial

activities are not allowed in residential areas, be it licensed colonies that come under DTCP or plots

in HSVP sectors.

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Date July 04 , 2019

Link https://realty.economictimes.indiatimes.com/news/residential/ocs-of-100-homes-in-gurugrams-upscale-areas-cancelled/70065752

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M Pallonji buys Turner Morrison building in Kala Ghoda for Rs 150

crore

The area known for its Victorian Gothic structures hasn’t seen many such transactions.

In one of the rare outright transactions to be concluded in South Mumbai for an entire building, M

Pallonji Group has bought Turner Morrison Building in Fort’s Kala Ghoda locality, said two persons

with direct knowledge of the development.

The M Pallonji Group has a presence in construction, shipping and finance, among other sectors,

through the group’s various firms. The century-old building was sold by the Kolkata-based company

Turner Morrison for about Rs 150 crore. The ground plus four storey building has total area of

54,000 sq ft built-up space.

“The deal has been concluded recently and all formalities have been completed. It’s a freehold

property,” said one of the persons mentioned above. Property consultants said the deal assumes

significance as an entire building has been sold in a micro-market that usually does not offer an

opportunity like this.

The last similar transaction took place in early 2017, when Dawat-e-Hadiyah, a charitable trust of

Dawoodi Bohra community, acquired the iconic Fort House from the Videocon Group. The prime

property, with total 1.50 lakh sq ft office space in on DN Road of South Mumbai, was sold for

around Rs 300 crore.

The Turner Morrison Building houses travel and tour operator Cox & Kings, the largest and anchor

tenant of the building, and legal firm Crawford Bayley. Turner Morrison also occupies some space in

this building. Email queries to Turner Morrison, M Pallonji Group and transaction advisor CBRE

India remained unanswered till the time of going to press. The deal valued the property at around Rs

28,000 per sq ft. The last sale transaction on outright basis for Fort House was concluded at Rs

20,000 per sq ft.

However, property consultants are of view that both deals are not comparable as the Fort House

transaction was initiated by State Bank of India to recover its dues from Videocon Group.

The micro-market, known for its Victorian Gothic architecture and structures that remind one of the

British era, has not witnessed many such transactions and even a large lease deal in 2016 had

surprised many.

In 2016, in the largest ever space transaction by any international retailer on high streets across the


Date July 04 , 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/m-pallonji-buys-turner-morrison-building-in-kala-ghoda-for-rs-150-crore/70065783

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country, Spanish fashion chain Zara leased 50,000 sq ft carpet space in South Mumbai's prime

location of Flora Fountain, close to Fort House. The world's biggest fashion retailer leased the space

on the ground floor of Ismail Building diagonally opposite HSBC's India head office.

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I-T department attaches 64 Benami properties on Jaipur-Delhi

highway

Thus, so far, a total of 458 benami properties have been attached in Rajasthan with total value

of around Rs 1,400 crore.

The benami prohibition unit(BPU) under income tax (I-T) department Jaipur has attached 64

properties in the Jaipur-Delhi highway on Tuesday. These 64 lands (with total area of 36 hectares)

have been provisionally attached by the BPU under the provisions of Prohibition of Benami Property

Transactions Act, 1988, said an official.

Thus, so far, a total of 458 benami properties have been attached in Rajasthan with total value of

around Rs 1,400 crore. He said that the land attached on Tuesday was purchased by Hazelnut

Constructions Private Limited (a Mumbai based company of Hiranandani Group in the name

of Sanju Devi Meena, a resident of village-Deepawas under Neem Ka Thana area of Sikar district in

the year 2006.

Present value of these lands is around Rs 100 crore. These lands were purchased in six villages on

Jaipur-Delhi National Highway in Amer of Jaipur through 64 separate sale deeds. Payments were

made by Hazelnut Constructions Private Limited while the lands were purchased in the name of

Meena who does not even file her income tax return.

Payments of total Rs 12.93 crore were made to the sellers in the name of Meena and around Rs 80

lakh were incurred on registry charges in Meena’s name.

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Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/i-t-department-attaches-64-benami-properties-on-jaipur-delhi-highway/70055812

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Gujarat budget 2019-20: Government allocates Rs 1,248 crore to

Housing for All scheme

The government will build 1.07 lakh new houses this year, for which Rs 1,208 crore has been

allocated.

Gujarat government on Tuesday presented its budget for the financial year 2019-20. The

government has allocated Rs 1,248 crore to provide house to all by the year 2022 under Pradhan

Mantri Awas Yojana (PMAY).

The government has sanctioned 4.80 lakh houses under this scheme.

Of the total 2.04 lakh houses, construction of 1.85 lakh houses has been completed till date at the

cost of Rs 2,105 crore. The government will build 1.07 lakh new houses this year, for which Rs

1,208 crore has been allocated, said state finance minister Nitin Patel while presenting the budget.

The state government also proposed to raise stamp duty, said Patel.

It has allocated Rs 4,894 crore under Swarnim Jayanti Mukhya Mantri Saheri Vikas Yojana, while

Rs 1,000 crore has been allocated for new Solar Rooftop Scheme. Beneficiaries will be given 40 per

cent subsidy upto 3KW and subsidy of 20 per cent for system of 3-10KW.

Under National River Conservation Program, purification project of Tapi will be taken up with

cooperation of Government of India, Gujarat government and Surat Municipal Corporation at the

cost of Rs 922 crore.

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Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/industry/gujarat-budget-2019-20-government-allocates-rs-1248-crore-to-housing-for-all-scheme/70060302

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GCCA launches India chapter to execute sustainability agenda of

cement industry

GCCA India will assume the responsibilities of the Cement Sustainability Initiative (CSI) India

which formerly served as the sector’s sustainability alliance.

The Global Cement and Concrete Association (GCCA) on tuesday launched its India chapter with an

aim to execute the sustainability agenda of the domestic cement industry which is the second largest

cement producing industry in the world.

As part of GCCA’s strategic partnership with the World Business Council on Sustainable

Development, GCCA India will assume the responsibilities of the Cement Sustainability

Initiative (CSI) India which formerly served as the sector’s sustainability alliance.

World Business Council on Sustainable Development is a CEO-led organisation of over 200

international companies that help achieve the sustainable development goals of the United Nations.

"India is clearly a critical market in terms of cement producing capacity and with population growth,

and the growing demand and need for safe homes and key infrastructure, cement and concrete are

clearly going to play an important role in the future development of the country. It’s very much the

aim of GCCA India to help ensure that this is undertaken in a sustainable way," Benjamin Sporton,

CEO at GCCA said at the launch event in Delhi today.

India is home to more than 500 million tonne cement producing capacity and another 20 million

tonne capacity is expected to be getting added until FY2021. This makes balancing production with

mitigating the adverse impacts that it causes more important than ever as environmental damage

surrounding us worsens with each passing year.

“Looking at the key role the Indian cement sector will play in achieving sustainable development

goals (SDGs), climate change and circular economy related objectives, GCCA has decided to launch

its operations in India. I am confident that GCCA India’s launch will help to further accelerate the

sustainable development agenda of the Indian cement industry," KK Maheshwari, MD at UltraTech

said at the launch.

GCCA India will develop a work program that will focus on the wider global GCCA priorities but

with practical application across the Indian built environment. It's priorities will include promoting

best practices in the areas of safety, production and use of cement and concrete in the built

environment, promoting principles of a circular economy across the value chain and fostering


Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/gcca-launches-india-chapter-to-execute-sustainability-agenda-of-cement-industry/70053218

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innovation in the cement making and concrete sectors in a way that makes a positive contribution to

sustainable development.

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Mahagenco doesn’t have enough space for Nagpur's brick kilns

Mahagenco Ash Management Services (Mahagams) had planned a fly-ash brick cluster in

2017. At that time, kiln owners were to shift to the cluster voluntarily.

While Nagpur Metropolitan Region Development Authority(NMRDA) has asked all brick kiln

owners in north and east Nagpur to relocate, Mahagenco simply doesn’t have space for all of them.

There are about 450 kilns near the city but Mahagenco has space for only 105 in the two lands

having total area of 53 acres. Authorities are clueless how to solve the problem.

Mahagenco Ash Management Services (Mahagams) had planned a fly-ash brick cluster in 2017. At

that time, kiln owners were to shift to the cluster voluntarily. Consequently, the project did not take

off. Now, the owners are under compulsion but Mahagenco can’t accommodate all of them.

Raju Khare, the president of Kumhar Seva Samaj Sangh Panch Committee, an association of east

Nagpur kiln owners, said that there were 220 affected owners in the area. “We have been asked to

relocate as Nagpur Municipal Corporation (NMC) wants to build affordable houses under the

Pradhan Mantri Awas Yojana (PMAY) on our land. We have submitted a list of 145 owners to

Mahagams. Guardian minister Chandrashekhar Bawankule and Nagpur East MLA Krishna Khopade

have promised to allot space to them,” he added.

Khare further said that there were about 450 kiln owners near the city — in east and north Nagpur.

“Those located in the east have to be relocated first as affordable houses will come up on their land.

Authorities have said that the north Nagpur ones will be shifted later as no project is coming up on

their land,” he added.

According to the kiln owners, Nagpur Improvement Trust (NIT) had leased them land for their

industry in 1950s. “We have demanded that our plot size in the fly-ash cluster should be more.

However, officials have told us that the size will be the same as that of the existing one,” said Khare.

Suresh Harode, president of Vidarbha Kumhar Samaj Vikas Samiti, an association of north Nagpur

kiln owners, too, is upset with lack of space available with Mahagenco. “Under no circumstances

should we be forced to relocate if Mahagenco doesn’t have enough land,” he said.

Mahagams director KM Chirutkar said that there was simply not enough space for 450 brick kiln

owners. “What can we do if we have limited space. At the most we can accommodate 5 to 10 more

kilns,” he added.

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Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/mahagenco-doesnt-have-enough-space-for-nagpurs-brick-kilns/70056290

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Disbursements normal since December: Sudhin Choksey, MD, Gruh

Finance

"From December, however, there has been very normal disbursement and I do not see any

significant slowdown. "

The overall real estate problems are more at the mid or high end of the market. At the low end of the

market, the challenge is creating more supply, says Sudhin Choksey, MD, Gruh Finance. Excerpts

from his interview with ETNOW.

What is the problem in the HFCspace? Is it liquidity? A company like yours, with a great

parentage, can raise capital on tap because of your track record. How come your numbers are

also slowing down?

You saw what happened during the last financial year during October-November when things

completely slowed down because of the general risk averseness and liquidity crunch in the last week

of September. From December, however, there has been very normal disbursement and I do not see

any significant slowdown. Obviously in general, the supply-side situation has been moving slow,

especially in the affordable housing segment. The overall real estate problems are more at the mid or

high end of the market. At the low end of the market, the challenge is creating more supply.

With the job market, where unemployment is at a 40-year high and, more importantly, being

in a sector which has been beleaguered for the last five years, do you worry that for the first

time perhaps you could dip into NPAs and the possible slippages that could occur on that

front?

I would not worry about the NPAs because if you have given out loans to people with stable

incomes, then I would not expect NPAs arising significantly or alarmingly. Maybe the level may go

up slightly for a short duration, but it would be nothing to worry about. The concern today in the real

estate market is the complete standstill especially in the mid income creation of housing units, and at

the high end as well. The real estate sector has gone ahead of the demand which existed and ended up

with a huge inventory. Now we have to slowdown new project launches. The problem is the creation

of housing units at the low end of the market that the government wants to give a thrust to. It has

been moving at very slow pace for various reasons.

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Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/disbursements-normal-since-december-sudhin-choksey-md-gruh-finance/70058413

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Godrej Properties sees biggest one-day fall

Morgan Stanley had downgraded the stock to underweight from equalweight.

Godrej Properties slumped 12.6 per cent on Tuesday — the biggest single-day fall ever — to end as

the worst performer in the BSE Midcap index amid market talk some investors, who got allotment in

the company’s share sale exclusively to institutional investors last week, sold their holdings.

Investors received shares from the company’s qualified institutional placement (QIP) on Tuesday.

Godrej shares ended at Rs 959.45 after touching a low of Rs 948.05 earlier on Tuesday. The stock

had risen 9 per cent to hit an all-time high of Rs 1,118 on Monday after the company said on

Saturday that it has raised Rs 2,100 crore by issuing equity shares to qualified institutional buyers.

The company allotted shares to institutional investors including Nomura India Investment Fund, the

Government of Singapore and BNP Paribas Arbitrageamong others at an issue price of Rs 928,

aggregating to Rs 2,100 crore. The issue price of Rs 928 was at a discount of about 15 per cent to

Monday’s closing price of Rs 1,097.40.

Brokers said investors, who were betting on a surge in the stock after the QIP, are likely to have

booked profits following the spurt on Monday.

“Some investors may have booked profits because there was an opportunity to make 10-15 per cent

quick returns,” said a senior institutional salesperson at a brokerage. The total traded volume on

Tuesday was 4.67 lakh shares as against the two-week daily average of 55,000 shares. The delivery

volume on Tuesday was 18.4 per cent compared to one-month average delivery volume of 21.6 per

cent. The three-month average delivery volume is 19.3 per cent.

While some analysts believe valuations are high, others still see it as a top pick in the real estate

space. Shares of Godrej Properties have gained 47.6 per cent so far this year while the BSE Real

Estate index has gained 23.3 per cent.

Godrej Properties Falls 12.57 per cent

Morgan Stanley had downgraded the stock to underweight from equal weight in a note dated June 21

and cut the target price to Rs 707 from Rs 802. Even as the company continues to deliver on new

project acquisitions and pre-sales, the current valuation appears ahead of fundamentals, said Morgan

Stanley.

Some analysts said any fall in the stock would be an opportunity to buy and see the stock gaining

over 40 per cent in the next two years. They don’t see any meaningful impact because of reports of

differences among family members over the usage of land owned by the family holding company


Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/industry/godrej-properties-sees-biggest-one-day-fall/70055735

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Godrej & Boyce. The group has denied any family dispute.

“The stock may be volatile in the near term because of uncertainty about family dispute over land

holdings but the stock remains one of our top picks. The company operates on lease model and has a

good track record of execution. Companies like Godrej also have strong pedigree. The stock is likely

to touch Rs1,350-1,400 in two years,” said Sanjiv Bhasin, executive VP-market and corporate affairs

at IIFL.

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Power supply to all illegal commercial buildings in Udhagamandalam

to be cut

Field inspections by the authorities have revealed that several buildings, which had obtained

licence as dwelling houses, were found used for commercial purposes.

The district administration has directed the Tamil Nadu Electricity Board (TNEB) to disconnect

power supply to buildings which were illegally used for commercial purpose in the district.

Field inspections by the authorities have revealed that several buildings, which had obtained licence

as dwelling houses, were found used for commercial purposes. The identified properties have been

notified by the civic body officials and the details of the same have been sent to the TNEB too, a

press release said.

Further, to resume power supply, the building owners have to receive an NOC from the district

collector. The release also asked the owners to use their buildings as per the licences issued.

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Date July 03 , 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/power-supply-to-all-illegal-commercial-buildings-in-udhagamandalam-to-be-cut/70056075