30-Dec-2019

10-Oct-2019

06-Dec-2019

CREDAI Bengal Daily News Update | 30.12.19

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Newspaper/Online The Telegraph (online)

Date December 30, 2019

PMC Bank didn't properly classify HDIL promoters' account:

EOW

The EOW charged the former management of PMC Bank with failing to report an

account of Rakesh Wadhawan with an outstanding amount of Rs 1,671.88 crore as the top

borrower from the HDIL Group and filing false statements with the Reserve Bank of

India to avoid regulatory scrutiny.

The Economic Offences Wing of the Mumbai Police filed an over 32,000-page chargesheet in

connection with the multi-crore scam at Punjab & Maharashtra Cooperative Bank on Friday,

charging HDIL promoters Rakesh and Sarang Wadhawan as well as former bank chairman

Waryam Singh, managing director Joy Thomas and director SS Arora.

The EOW charged the former management of PMC Bank with failing to report an account

of Rakesh Wadhawan with an outstanding amount of Rs 1,671.88 crore as the top borrower

from the HDIL Group and filing false statements with the Reserve Bank of India to

avoid regulatory scrutiny.

Of 43 accounts with an outstanding amount of Rs 5,027.33 crore in FY18, only 21 loan

accounts of the HDIL Group with dues of Rs 333.14 crore were reported to the RBI, according

to the chargesheet reviewed by ET. The group’s total outstanding amount accounted for more

than half of PMC Bank’s entire credit exposure.

The chargesheet says Rakesh and Sarang Wadhawan hatched a criminal conspiracy to cause

wrongful gains for their company by taking loans from PMC Bank against mortgage facilities

without providing any security.

To support its findings, the EOW attached a statement of Rupali Raut, an executive of the

bank’s credit department who prepared statements submitted to the RBI during FY15 to FY17.

‘Rakesh Wadhawan not Named Top Borrower’

Raut told the EOW that “the practice of hiding loan liability of HDIL Group company’s account

dates back from almost 2008”.

Rakesh Wadhawan should have been reported as the top borrower from HDIL Group in 2018,

according to the EOW. However, bank officials, acting under instructions from superiors,

excluded his name. The acts of concealing material facts of the total credit exposure of HDIL

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/pmc-bank-didnt-properly-classify-hdil-promoters-account-eow/73002878

Group companies in PMC Bank and the preparation of false statements filed with the RBI fall

well within the ambit of forgery and criminal conspiracy of the Indian Penal Code, the EOW

said in the chargesheet.

Similarly, irregularities were observed in other statements submitted to the RBI that dealt with

segment-wise analysis and the bank’s exposure to the real estate sector.

“As the main business of HDIL and its group companies is construction and development of the

properties, all accounts have to be classified under commercial real estate (CRE) category…

Instead, PMC Bank has shown additional counts of fictitious accounts and amounts,” the EOW

said.

PMC Bank showed 59,675 accounts with outstanding dues of Rs 5,528.38 crore. These

accounts included 21,049 fictitious accounts purportedly prepared over the years to conceal 22

loan accounts of HDIL with outstanding dues of Rs 4,638.46 crore and 22 other loan accounts

with outstanding dues of Rs 3,815.82 crore, according to the chargesheet.

The probe revealed that HDIL and associate companies availed of mortgage against overdraft/

mortgage loan type credit from PMC Bank between 2008 and 2014, while Sarang and Rakesh

Wadhawan availed of similar loan facilities from 2009 to 2013. While awarding these mortgage

facilities, PMC Bank did not follow the rules.

In the case of Sarang Wadhawan, the memorandum of deposit limit of Rs 10 crore was

sanctioned in 2009 and by 2018, this limit had been renewed to Rs 91 crore. The enhanced

amount was disbursed without any security. The required loan documents were invalid and the

amount wasn’t repaid, which were a full-fledged breach of the RBI’s norms and conditions, the

EOW said.

“All facilities are mortgage loans. However, officials have not obtained security against

facilities awarded... facilities have been enhanced periodically without taking into consideration

the actual performance of borrowers,” it said.

The bank officials, instead of classifying these loans as non-performing assets, kept charging

interest on these outstanding dues to keep them alive and present them as financially sound, it

was stated in the chargesheet.

The alleged modus operandi involved falsifying the bank’s advances master dump Excel sheet,

which required details of each loan account to be provided. The bank started to conceal select

non-performing exposures by replacing the information with dummy accounts. The largest

outstanding balance among the fictitious accounts mentioned in the advance master indent of

FY18 was only Rs 42.83 lakh, the chargesheet stated.

“The same have been missed by the previous RBI inspecting team because the balance

outstanding in these fictitious accounts was considerably small in amount,” the EOW said.

According to the chargesheet, PMC Bank included 2,500 accounts in the advance master file in

2014-15 and while adding them, only the outstanding amount was mentioned. In 2015-16, a

new set of accounts was included. For 2016-17, an additional 4,969 new fictitious accounts

were included for a total of 17,469. For 2017-18, 3,580 fictitious accounts were added, taking

the total to 21,049 fictitious accounts, according to the chargesheet.

“This exercise was done for the purpose of concealing huge outstanding of HDIL Group

accounts... the practice of creating fictitious accounts was applied to meet with compliance of

RBI instruction regarding providing details of all borrowers of bank,” it said.

The EOW said the bank maintained three notebooks containing details of the money paid and

received by HDIL and its associate companies, Rakesh and Sarang Wadhawan, Waryam Singh

and Joy Thomas. The money belonged to public depositors. The statements of over 40

depositors were attached with the chargesheet.

“In some instances, they have paid cash to these people against cheques furnished by them and

in some instances cash was paid to them without any cheque or any other instrument,” the EOW

said.

The chargesheet states that between 2014 and 2019, Rs 65.29 crore was paid in cash to HDIL

Group which returned Rs 55.28 crore. The balance has not yet been repaid.

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HFCs’ share in realty loans doubles since 2016: RBI

Meanwhile, the share of private sector banks rose to 30.41 per cent from 23.62 per cent,

while the exposure of PSBs nearly halved to 24.34 per cent as of June 2019, shows the

FSR.

The loss of public sector banks’ share in credit market, especially the realty sector, has been the

gain for housing finance companies as their share saw doubling in the past three years to 23.81

per cent as of June 2019, according to the latest RBI data. The share of builder loans has risen

for non-banking lenders and private banks since 2016, as per the Financial Stability Report

(FSR) based on the analysis of 310 companies, even as the proportion of public sector banks’

(PSBs) exposure to this segment nearly halved.

Over the past four years, total financing to real estate companies nearly doubled to Rs 2.01 lakh

crore, shows the FSR released on Friday.

Housing finance companies (HFCs) have doubled their share in builder loans to 23.81 per cent

by June this year, compared with 12.17 per cent in June 2016.

Meanwhile, the share of private sector banks rose to 30.41 per cent from 23.62 per cent, while

the exposure of PSBs nearly halved to 24.34 per cent as of June 2019, shows the FSR.

“While the aggregate exposure to real estate companies almost doubled to Rs 2.01 lakh crore,

the aggregate share of HFCs and private sector banks increased, while public sector banks’

aggregate share came down sharply,” the report said.

Home financiers have collectively lent around Rs 47,900 crore to builders as of June 2019 up

from Rs 12,770 crore in June 2016. But, their exposure in absolute terms did not change much,

for state-owned lenders.

“Since September 2018, when the IL&FS-induced risk aversion began, all categories of

financial intermediaries have increased their exposures to realtors, the sharpest being that of

HFCs,” the RBI said.

Newspaper/Online The Financial Express (online)

Date December 29, 2019

Link https://www.financialexpress.com/industry/banking-finance/hfcs-share-in-realty-loans-doubles-since-2016-rbi/1806784/

On the other hand, the system-wide credit losses of banks also jumped from 5.74 per cent in

June 2018 to 18.71 per cent in June 2019.

This spike has been led by PSBs, whose impairment has jumped from 15 per cent in June 2018

to 18.71 per cent in June 2019, the FSR added.

The system-wide losses stood at 3.90 per cent in June 2016, and for state-owned banks, it stood

at 7.06 per cent. The losses saw on a steady rise to 4.38 per cent and 9.67 per cent, respectively,

in June 2017, said the report. The FSR added that the numbers are based on an analysis of 310

real estate borrowers and the impairment numbers are based on a 90-days past due.

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Kerala chief minister to formally launch K-RERA on January 1

LSG minister A C Moideen and Minister for tourism and devaswom Kadakampally

Surendran will also be present on the occasion.

Chief minister Pinarayi Vijayan will formally launch Kerala Real estate regulatory authority

(K-RERA) on January 1 at Mascot hotel at 3pm.

LSG minister A C Moideen and Minister for tourism and devaswom Kadakampally Surendran

will also be present on the occasion.

The government constituted K-RERA in October. K-RERA has issued a public notice directing

that all the promoters, builders and developers shall not advertise, market, book , sell or offer to

sell apartments, plots of buildings from January 1,2020 without obtaining prior registration

from K-RERA if the apartment has more than eight units or the land proposed to be developed

is more than 500 metres.

Similar direction has also been issued to real estate agents that they shall not facilitate sale or

purchase of plot, apartment or building without obtaining registration from K-RERA under

relevant sections.

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Newspaper/Online The ET Realty (online)

Date December 29, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kerala-chief-minister-to-formally-launch-k-rera-on-january-1/73017430

Only 90,000 buildings in Madurai have working rainwater

harvesting structure

Among them, 129 buildings which are mostly apartments, government buildings and

industrial complexes and have been given three-star rating - provision to store and utilize

rainwater - by the civic body.

Only 90,066 buildings out of the 3.2 lakh buildings in the city have rainwater harvesting (RWH)

structure that works, reveals the enumeration conducted by the city corporation.

Among them, 129 buildings which are mostly apartments, government buildings and industrial

complexes and have been given three-star rating - provision to store and utilize rainwater - by

the civic body.

Among the remaining buildings, 860 have got two-star rating and 86,777 got one-star rating.

The rest, 2,18,849 buildings, have rainwater harvesting structures but they are not in a working

condition. 10,854 buildings do not have RWH.

Madurai corporation had recently introduced star ratings based on efforts taken by the building

owners to install rainwater harvesting structures. Two star rating is given for buildings where

every drop of water is harvested, one star for a working rainwater harvesting structure, whereas

half-star rating is given to buildings with non-functional rainwater harvesting structure. Three

star rating means excellent, two star means good, one means simple.

Corporation commissioner S Visakan told TOI that notices have been served to the owners of

buildings which have been given half-star rating or without RWH structure. “They building

owners are being educated on the importance and soon working rainwater harvesting structure

will be ensured in all the buildings,” he said.

“Rainwater harvesting was created in a few thousand buildings in the recent weeks following

the action taken by the corporation. Assistant engineers concerned are following it up closely.

Apart from this, recharge pits have been installed at around 200 places and more than 400

defunct borewells have also been converted into rainwater recharge structures,” he said.

“We are getting positive response from residents from various parts of the city on the ground

water situation. Water level in borewells has increased at various places,” Visakan added.

Another official from the corporation said that apartments and commercial establishments have

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/only-90000-buildings-in-madurai-have-been-given-3-star-rating-for-rainwater-harvesting/73005705

got a bulk of the three-star rating. They are working with non governmental organisations to

improve the underground water table apart from taking efforts to popularize treatment of sullage

at commercial establishments, where a large quantity of water is being used. “Building owners

are being educated about natural water treatment methods using plants. The treated water can be

used for gardening,” he said.

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Vijayawada: Land gets costlier in Jakkampudi due to affordable

housing project

Surveys conducted by officials to identify government land to construct affordable houses

in this region are the prime reason for the sudden increase in land prices.

While interest in the real estate sector in the city declined with uncertainty over the

capital, Jakkampudi, Kothuru Tadepalli and other villages surrounding the city are seeing a

sudden boom in the price of land. Proposals for a few government projects, which includes

affordable housing for around 80,000 people, have created a sudden demand for land in this

region.

While some realtors across the city were busy opposing the proposal of shifting the

administrative capital from Amaravati to Vishakapatnam—some formed a JAC and have joined

the protests—some others were busy preparing route maps for new ventures in the Kothuru

Tadepalli and Jakkampudi regions.

Surveys conducted by officials to identify government land to construct affordable houses in

this region are the prime reason for the sudden increase in land prices. “There is a sudden rise in

cost of land in our region. The earlier government had proposed an economic city here. This

government is continuing the project and is planning to construct colonies for below poverty

line families here. Many realtors were behind us to sell our land on an agreement basis,” said K

Narasimha Rao, a farmer from Kothuru Tadepalli.

In Mylavaram road near Jakkampudi, a plot of land which earlier cost Rs 2 crore per acre has

now touched Rs 5 crore. “Lands in this region were sold at low prices. Back then no one had

showed any interest in this region. Things changed all of a sudden with the state government’s

proposals of an affordable houses project in this region. There is a huge demand for land in this

region now. Many farmers are coming forward to sell their lands because of the high price,”

said N Rambabu, a realtor from Ambapuram.

The realtor added that many buyers from Hyderabad and other parts of Telangana were showing

interest to buy land in the area with rumors doing the rounds about the state government

acquiring land under the land pooling scheme for government projects. “We hope the projects

will turn reality in coming future,” Rambabu said.

Meanwhile, Krishna district administration have intensified their exercise to identify suitable

land for the affordable housing project. The availability of huge plots of government and

Newspaper/Online The ET Realty (online)

Date December 29, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/vijayawada-land-gets-costlier-in-jakkampudi-due-to-affordable-housing-project/73017533

assigned lands in the Jakkampudi area is said to be the main reason it was selected for the

affordable housing project.

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Despite Karnataka-RERA order, 279 home buyers yet to get

compensation

A total of 279 homebuyers are waiting to get monetary compensation from defaulting

builders even though it’s been three years since the Real Estate (Regulation and

Development) Act, 2016 came into force.

Software engineer Sai Pramod Narasaiah, 43, had invested Rs 1 crore to buy a flat in 2014 after

availing a loan of Rs 75 lakh. The builder had promised to complete the Hennur Road project

and allot the house by August 2016, but Pramod didn’t get possession.

In 2018, he approached the Karnataka Real Estate Regulatory Authority (RERA) that ordered

the builder to pay him a compensation of Rs 65 lakh within 45 days. A year on, he’s yet to

receive the amount.

Pramod is not alone. A total of 279 homebuyers are waiting to get monetary compensation from

defaulting builders even though it’s been three years since the Real Estate (Regulation and

Development) Act, 2016 came into force. The Authority’s order to local officials to recover

money from developers to compensate buyers is not being implemented.

K-RERA has received 283 complaints involving 47 builders since November 2018 but only

four homebuyers have got compensation so far. According to the rules, the builder has to pay

10.5% on the amount paid by the buyer if he fails to deliver within the deadline — the

cumulative compensation amount for consumers has been calculated at Rs 117.3 crore. But no

developer complied with the K-RERA order till June this year, say aggrieved homebuyers.

Lacking the powers to enforce its order, K-RERA referred all cases to the deputy commissioner

(DC) of Bengaluru Urban district, asking him to auction the properties of defaulting developers

and pay compensation to buyers. However, the administration has managed to recover only Rs

1.2 crore so far.

“We sent a reminder to the district administration on November 14 but to no avail,” said K-

RERA secretary KS Latha Kumari. On December 9, the Authority sent a missive to the regional

commissioner, Bengaluru division, Harsh Gupta. He reportedly pulled up the district

administration, following which there has been some progress. “The procedure involves

identifying properties of errant builders and initiating the process to auction them. The cases are

at different stages and we are trying to expedite them,” said Bengaluru Urban DC GN

Shivamurthy.

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/despite-karnataka-rera-order-279-home-buyers-yet-to-get-compensation/73002836

Acknowledging the delay, K-RERA chairman MR Kamble said they have identified some

loopholes in the system and are bringing in changes to ensure homebuyers get justice. “We have

been conducting spot inspections of ongoing projects and attaching properties of defaulting

developers. But we need a dedicated task force to perform these tasks. At present, we rely on

revenue officials,’’ he added.

Will ask Centre to amend rules

The government will look into strengthening RERA in Karnataka. We will soon prevail upon

the Centre to bring in the necessary amendments in the rules to plug the loopholes. We have

asked K-RERA officials to come up with proposals

________________________________________________________________________________________________

Lucknow development body to construct 300 HIG flats in

Gomtinagar

The development authority is also planning to construct housing project on Sultanpur

Road similar like the Vasantkunj Yojna, which has around 900 flats.

Lucknow Development Authority will construct as many as 300 high income group (HIG) flats

in posh Vibhuti Khand area of Gomtinagar.

According to LDA records, flats coming under this scheme will have two bedrooms, hall,

kitchen, washroom and a study room.

The cost is yet to be decided, but each flat may range between 70-80 lakh.

Registrations will only begin after construction of the project is completed, considering the high

demand for flats, Lucknow Development Authority will allot them through lottery system.

Lucknow Development Authority vice-chairman PN Singh said, “The land has been identified

at Vibhuti Khand and construction work is expected to start from the month of March.”

The development authority is also planning to construct housing project on Sultanpur Road

similar like the Vasantkunj Yojna, which has around 900 flats.

However, the land has not been finalized for the projects, but according to Lucknow

Development Authority estimates the project will need around 200 acre of land to be finalized.

________________________________________________________________________________________________

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/lucknow-development-body-to-construct-300-hig-flats-in-gomtinagar/73005681

Indore development body to give 800 plots to 18 housing societies

members

The board had passed a resolution in 1987 with some housing cooperative societies to

provide them plots in a fixed proportionate after their land was taken by the authority to

develop residential colonies.

Indore Development Authority (IDA) has prepared a list of around 800 plots, which will be

distributed among members of 18 housing cooperative societies. The plots would be given to

the members on the basis of seniority.

The board had passed a resolution in 1987 with some housing cooperative societies to provide

them plots in a fixed proportionate after their land was taken by the authority to

develop residential colonies. Later, the agreement was cancelled with three societies. So far,

IDA has allotted 8300 plots to members of 44 societies, as per IDA CEO Vivek Shrotriya.

“There are some conditions for allotting plots to the housing societies, which we had mentioned

into the agreement,” said Shrotriya adding that plots would be allotted proportionate to

developed area only after receiving development cost from the respective societies.

“As per our conditions, we have received seniority list of only 50 members along with

development cost from their respective societies, so at present plots will be allotted to only 50

members,” said the CEO.

The plots can not be allotted to the remaining members due to legal aspects including stay from

court or objections from cooperative department. They will be allotted the plots after getting

legal clearance, he added.

As per IDA records, it has to allot 87 plots to members of Vikas Apartment, 58 to Kasera, 23 to

Mahatma Gandhi, 38 to Kasth Nivarak, 148 to Navbharat and 47 to Ram Kripa housing

cooperative Societies in its Scheme 97 Slice-II and IV.

The list also includes allotment of 35 plots to members of Vikas Apartment, 63 to Laxman, 33

to Kavita, 15 to Sneh Nagar, 1 to Indore New Cooperative, 12 to Akshay, 2 to Jankalyan, 98 to

Raghuwanshi, 39 to Suvidha, 7 to Geeta Nagar, 4 to Mayur Nagar and 81 to Karmachari Griha

Nirman Sanstha.

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/indore-development-body-to-give-800-plots-to-18-housing-societies-members/73005640

New system to measure land in minutes to be implemented soon in

Nashik

The officer pointed out that the conventional measurement of land, which is carried out by

a team of land surveyors, would take a minimum of two hours, even for a small piece of

land.

The Survey of India and the land records department have decided to implement continuous

operating reference stations (CORS) using which land measurement can be accomplished in

minutes along with producing an accurate map of the land.

“There are 77 CORS in Maharashtra. Of those, 12 will come up at government offices across

Nashik division. They will not only help with the land measurement activity, but also with land

acquisition, alignment of roads and other related activities in a swift, transparent and accurate

manner,” said Milind Chavan, deputy director, land records.

The officer pointed out that the conventional measurement of land, which is carried out by a

team of land surveyors, would take a minimum of two hours, even for a small piece of land.

“First, the person has to obtain the coordinates to start the measurement and then, with the help

of assistants, draw a map of the land. In case there are trees and bushes or visual barriers, the

measurement takes more time. Making the final map takes another month’s time before it is

given to the applicant. Here, the entire work can take less than a day,” the officer said.

The CORS is equipped with a dish antenna that is linked with a satellite to get accurate

coordinates. A land surveyor has a rover — an equipment designed to receive and transmit

signals fixed on a stick — in his hand. “When the surveyor goes on the site, he takes

coordinates from the CORS only has to walk around the dimensions of the property and return

to the starting point. The surveyor will take up as much time as required to walk around the

land. If it is a small piece of land, then it will take about 10 minutes,” Chavan said.

Once the map is ready and other technicalities are completed, it can be given to the applicant —

at the earliest — within three days. The officer said that of the 12 CORS, four will come up

in Nashik district. The CORS will provide signals to surveyors within a radius of 35 to 50km.

They need not be manned but will need security infrastructure around and hence will ideally

have to operate out of government offices — like a tehsildar or district collectorate office.

“The system has tremendous potential. Carrying out activities such as identifying alignment of

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/technology/new-system-to-measure-land-in-minutes-to-be-implemented-soon-in-nashik/73005862

the road, rail, canals, planning development work and land acquisition will benefit from such a

system. Besides, the Survey of India will also be able to carry out its own programmes,”

Chavan added.

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Builders can't change terms unilaterally: Tamil Nadu RERA

The case relates to a commercial complex project named ‘Gold Souk Grande’ on GST

Road, Vandalur, in which complainant R Mithun Chakravarthy had booked a shop.

Stressing that developers cannot unilaterally alter their agreement with buyers, the Tamil

Nadu Real Estate Regulatory Authority (TNRERA) on Friday directed a commercial developer

to pay rent to the tune of Rs 27.65 lakh to a buyer for failing to deliver his shop for seven years.

The case relates to a commercial complex project named ‘Gold Souk Grande’ on GST Road,

Vandalur, in which complainant R Mithun Chakravarthy had booked a shop.

According to the complainant, a shop with a super built up area of 420sqft was allotted on the

second floor and Rs 37.21 lakh was paid to the promoter for it. As per the agreement entered

between the buyer and the developer, Metroline Promoters Pvt Ltd, in 2011, the promoter had

promised to pay Rs 31,415 as monthly return till the unit was handed over.

While the commercial unit was scheduled to be delivered before June 2013 including a grace

period of six months, the complainant charged that the possession of shop was not handed over

yet. Moreover, the monthly return was paid only for a period of three months and 20 days.

The developer said the construction could not be completed before the expiry day of the

(planning) approval due to certain eventualities. Blaming the Chennai Metropolitan

Development Authority for delaying the renewal of planning permission, the promoter said the

permit was obtained in February 2019.

The commercial unit booked by the buyer was ready for possession but the buyer was refusing

to take it on grounds of non-renewal of planning permission, it alleged. The developer further

said rent payment was applicable only till December 2013, and that in lieu of unpaid rent, extra

area would be allotted in the complex.

Hearing both sides, TNRERA adjudicating officer G Saravanan said the promoter cannot

unilaterally alter an undertaking given to the buyer. Noting that the complainant is entitled to a

rent from February 2012 to May 2019, TNRERA ordered that a total rent of Rs 27,65,400 be

paid to the buyer. The realty regulator fined the promoter Rs 2 lakh for causing mental agony to

the buyer.

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/builders-cant-change-terms-unilaterally-tamil-nadu-rera/73002820

Gurgaon: DTCP notices to Suncity residents for using villas as

guesthouses

The residents who had raised the complaints, told the department that because of the

guesthouses, the society is not “livable” for them.

The department of town and country planning (DTCP) issued notices to owners of 10 villas

in Suncity Township on Golf Course Road for using the residential society for commercial

purposes. The move comes after some residents of the society filed a complaint with the DTCP

alleging that many villas of the society are being used as a guesthouse.

The residents who had raised the complaints, told the department that because of the

guesthouses, the society is not “livable” for them. They said the owners have been sub-letting

them as a guesthouse, which is not allowed inside a residential society.

The complainants also pointed out that there are more than 50 villas in the society that have

been converted into a guesthouse without permission from the authorities concerned. “These

commercial setups are putting a lot of pressure on the resources which are meant for the

residents. We do not feel safe in our own area anymore as every now and then, we see a large

number of outsiders regularly visiting the society. We are facing water scarcity in the society

because of the issue,” said VMK Singh, a resident.

The department plans to seal the properties in case the owners fail to adhere to the law. “We

have sent notices to the owners, who have been using the residential units for commercial

purposes without permission. We will seal the units in case they fail to shut down the

establishment,” a senior official said.

Another resident, SP Saini, said, “Parking is a big concern in the society because of a large

influx of people in Suncity owing to the commercial setups. Our safety is being compromised.

We have written to the department of town and country planning, requesting them to take

corrective action. We are facing issues with electricity as the load exceeds in Suncity because of

the guesthouses that are running without any permission.”

The show cause notice also directed the owners to modify these properties back to their original

state in conformity with the provisions of the notified development plan. The owners are

supposed to develop the building as per the building plan submitted with the department.

However, it has come to the notice of the officials that many have flouted the norms, and thus,

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/gurgaon-dtcp-notices-to-suncity-residents-for-using-villas-as-guesthouses/73002903

they are asked to submit a reply within a week to the department explaining why the department

should not take legal action against them.

________________________________________________________________________________________________

EOW initiates probe in an alleged scam offering DDA flats under

landpooling

Investors were first asked to pay a token money to secure a slot while bidding for the flats

and then told to shell out Rs 10-15 lakh as various “development charges”. The scam was

promoted through text messages and e-mails.

Economic Offence Wing (EOW) has initiated a probe into an alleged housing scam in which

scores of buyers were allegedly offered “DDA flats under a central government scheme” in

southwest Delhi’s Dwarka.

Investors were first asked to pay a token money to secure a slot while bidding for the flats and

then told to shell out Rs 10-15 lakh as various “development charges”. The scam was promoted

through text messages and e-mails.

Additional CP (EOW) O P Mishra said that after receiving a complaint on Thursday, police

contacted Delhi Development Authority, which said it had also received similar complaints and

was probing them.

One of the investors, Rewant Kumar Mishra, a resident of Sangam Vihar, registered an FIR

under sections of criminal conspiracy, criminal breach of trust and fraud against Revanta Multi

State CGHS LTD. Mishra said that in 2015, he had come across an advertisement that the

company, located at Sector23, Dwarka, was going to build residential flats through landpooling

in Dwarka’s L zone.

After forming a society, the company had started urging people to invest in “Smart Residency”.

The accused issued brochures and made various presentations citing the DDA-approved

landpooling policy to lure investors. Mishra said he was allotted the membership of the society

after investing Rs 20.2 lakh for a 1,760-sq ft flat. The total cost was pegged at Rs 51.2 lakh.

In March 2019, he was asked to pay another Rs 5.9 lakh. The company said “the Development

Ministry, Govt of India” had reduced the floor-area ratio from 400 to 200 due to scarcity of

water and other resources. The complainant later came to know through media reports that

DDA hadn’t announced any such scheme.

DDA has forwarded its complaints to EOW, which has formed a team to investigate the case, a

senior officer said.

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/eow-initiates-probe-in-an-alleged-scam-offering-dda-flats-under-landpooling/73005916

Kanpur civic body to table house tax OTS scheme proposal on

Saturday

According to KMC officials, around 3,65,534 residential building owners of the city would

be benefitted from this scheme. Around 38,817 non-residential houses have however been

excluded from the scheme.

The proposal of a one-time settlement (OTS) scheme for house tax, likely to be implemented in

the city soon, will be tabled in the Kanpur Municipal Corporation (KMC) house meeting to be

held on December 28.

According to KMC officials, around 3,65,534 residential building owners of the city would be

benefitted from this scheme. Around 38,817 non-residential houses have however been

excluded from the scheme.

Under the OTS scheme, the house owners clearing their outstanding house tax dues would get a

20 percent rebate till January 31, 2020. Thereafter, they would get 10 percent rebate till March

31, 2020, said a KMC official.

According to sources, since the OTS scheme is an old scheme, therefore, it is mandatory for the

officials to get it passed in the house. According to additional municipal commissioner, Amrit

Lal Bind, the state government had sanctioned the old scheme with a direction that only

residential property owners would avail the benefit of this scheme.

The KMC is reeling under severe financial crisis for the last five years firstly because the state

government had slashed financial aid to Kanpur and secondly the KMC failed to collect 100

percent tax through its own network, the source further said. It may be mentioned that as against

the house tax target of Rs 220.48 crore fixed by the state government, the KMC could realize

only around Rs 101 crore till December 27.

"The KMC hopes to collect around Rs 173 crore under the OTS scheme. As per the records, the

house tax amounting to Rs 39.77 crore is due against 3.65 lakh residential house owners. Since

the house tax has remained unpaid, the total outstanding amount is around 60.88 crore,

including Rs 21.11 crore as interest", said a KMC official. Similarly, Rs 73.87 crore tax pending

against non-residential house owners has touched Rs 113.02 crore mark including Rs.39.20

crore as interest, he added.

As per data, zone-5 is on the top in recovery as it has collected Rs 23.01 crore as against 45.75

Newspaper/Online The ET Realty (online)

Date December 28, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/kanpur-civic-body-to-table-house-tax-ots-scheme-proposal-on-saturday/73005764

crore. Next in the list is zone-1 which has collected Rs. 17.50 crore as against Rs 40.97 crore

while zone-4 is at the bottom as it could collect Rs 14.57 crore against Rs 41.17 crore.

Similarly, zone-2, zone-3, and zone 6 have so far collected Rs. 16 crore, Rs 9.09 crore, and Rs

21.34 crore respectively which is around 40 percent of the collection, the data said.

________________________________________________________________________________________________

Thiruvananthapuram civic body identifies 122 CRZ violations

within its limits

The officials were asked to compile list of constructions done in violation of CRZ

notification 2011 in accordance with the Supreme Court order in the wake of CRZ

violations at Maradu municipality.

The city corporation has identified a total of 122 constructions built in violation of CRZ (coastal

regulation zone) notification 2011 under four zonal areas where CRZ norms are effective. The

latest list has been prepared in the wake of violations being identified in various coastal districts

in the state.

The corporation secretary had directed assistant engineers and assistant executive engineers of

areas where CRZ norms are applicable to furnish list of violations along with their affidavit

following communication from the convener of district coastal committee and district collector.

The officials were asked to compile list of constructions done in violation of CRZ notification

2011 in accordance with the Supreme Court order in the wake of CRZ

violations at Maradu municipality. As per the SC order, the chief secretary was directed to

prepare the list of violations against CRZ notification across the state.

The government had convened district committees in 10 coastal districts, including

Thiruvananthapuram. The committee was constituted with district collector as the chairman,

district town planner as convener and three other members being secretary of local body

concerned, village officer of coastal village concerned and any other member nominated by

district collector.

As per the latest list submitted by the corporation, the buildings are categorised as residential,

special residential and commercial. Vizhinjam zonal has reported the highest number of CRZ

constructions (98) done in violation of CRZ notification 2011.

The list includes beach resorts, shops, textiles, short stay homes and tourist homes. Some of the

buildings against which the corporation had initiated demolition but had to withdraw owing to

local protest are also included in the list. Seventeen violations have been reported

under Thiruvallom zonal, and Fort and Attipra have reported seven violations. In Thiruvallom,

the violations are mostly of residential category with a few coming under commercial

occupancy.

Newspaper/Online The ET Realty (online)

Date December 29, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/thiruvananthapuram-civic-body-identifies-122-crz-violations-within-its-limits/73017585

Palayam Rajan, chairman of town planning committee, said some of these violations have been

stuck in legal fights. “We have sorted cases where legal petitions are pending and as for other

violations, confirmation order and vacation notice have been issued,” Rajan said.

Kerala coastal zone management authority (KCZMA) in its 102nd meeting on May 9 concluded

that CRZ was applicable to unauthorised constructions in Kovalam too.

________________________________________________________________________________________________

Maharashtra government's guidance sought for registering

projects with OC

As per the Real Estate (Regulation and Development) Act (Rera), projects that were

issued occupancy or completion certificates prior to the implementation of the act do not

need to register with MahaRERA.

The property registration department has sought guidance from the state government for

registration of projects, which were issued occupancy certificate (OC) even before

the Maharashtra Real Estate Regulatory Authority (MahaRERA) came into existence in 2017.

As per the Real Estate (Regulation and Development) Act (Rera), projects that were issued

occupancy or completion certificates prior to the implementation of the act do not need to

register with MahaRERA. The property registration department, however, has been insisting on

registering such projects with MahaRERA as per the notification issued by the previous

government in September last year (see box).

With the formation of the new government in Maharashtra, the registration department has

requested for a joint meeting with officials of MahaRERA, housing department as well as law

and judiciary department to address the issue. “We need clarity on registration with MahaRERA

for projects that were issued occupancy certificate (OC) before Rera was implemented and

Newspaper/Online The ET Realty (online)

Date December 29, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-governments-guidance-sought-for-registering-projects-with-oc/73017458

MahaRERA came into force,” an official from the registration department said.

A senior developer and member of Credai said registration of several projects that received OC

was being stopped at the sub-registrar’s office for want of MahaRERA registration. “In spite of

receiving clear instructions from MahaRERA regarding project registration, this issue continues

to trouble developers as well as homebuyers alike,” he said.

As per MahaRERA, such projects are exempted from registering with MahaRERA. “In spite of

the clear rules, the registration offices are refusing to register such projects,” a developer said.

Developers said in spite of writing to the registration department, there has been no change in

the situation. Credai national vice-president Shantilal Kataria, said, “To verify if projects are

registered or not is the responsibility of MahaRERA and not the revenue or registration

department.”

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