10-Oct-2019

06-Dec-2019

19-Feb-2020

CREDAI Bengal Daily News Update | 19.02.20

Realty slowdown helping warehousing companies unlock land

parcels: ESR Advisers

ESR has entered into ventures with the likes of the Future Group, GMR and Lodha to

develop logistics parks in Nagpur, Gurgaon, Hyderabad and Thane to expand its logistic

footprint in India.

The slowdown in the residential real estate segment is helping warehousing players to unlock

large land parcels through joint venture and development agreements, said Abhijit Malkani, co-

CEO at ESR Advisers India.

ESR, one of Asia’s largest developers and operators of logistics and warehousing facilities,

follows an asset-light model. It has entered into ventures with the likes of the Future

Group, GMR and Lodha to develop logistics parks in Nagpur, Gurgaon, Hyderabad and Thane to

expand its logistic footprint here. “One of the biggest challenges for the industry is land

acquisition, but that has started to be available now. Execution will be the key to success in

future,” said Malkani.

The Hong Kong-headquartered firm that counts Amazon and Flipkart among its clients plans to

list its assets through a real estate investment trust (REIT) over the next 3-4 years in India. “The

success of the first REIT (in India) has given clear exit to investors. The idea is to have 30 million

sq ft of operational assets over the next 3-4 years,” said Malkani.

ESR, formed by the merger of e-Shang Cayman and Redwood Group Asia, owns and manages

properties worth about $20 billion globally.

The Indian arm has already deployed $250 million over the last two years.

Property consultant JLL said strong demand was expected to drive market absorption in the

warehousing space and keep vacancy below 10%. In 2019, large global funds like Blackstone,

ESR and Morgan Stanley invested in a combination of platforms or project-level deals.

In 2018, ESR and Allianz Real Estate had decided to jointly invest about $500 million in India’s

growing logistics and industrial property market. The JV plans to roll out large-scale logistics and

industrial facilities in eight cities — Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata,

Bengaluru and Hyderabad.

India’s logistics and warehousing sector is expected to see significant growth, with foreign capital

remaining an integral part of the development. According to the JLL India Industrial Services

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/realty-slowdown-helping-warehousing-companies-unlock-land-parcels-esr-advisers/74186396

report, 2019 witnessed 15% growth in total net absorption in Grade A & B warehousing space in

the country’s top eight cities.

________________________________________________________________________________________________

Aadhaar card likely to be must in land deals in Kerala

A proposal in this regard from IG, registrations, on the basis of recommendations from the

Centre, (accessed by TOI) is pending before the government for more than a year now.

Following the decision to link details of land holders with their respective Aadhaar numbers, the

government is also likely to take a favourable decision on the proposal by the registration

department to make it mandatory to submit Aadhaar number of buyers and sellers of properties

during property registrations.

A proposal in this regard from IG, registrations, on the basis of recommendations from the Centre,

(accessed by TOI) is pending before the government for more than a year now. The department

of land resources under the ministry of rural development of the Centre, had written to the states

in 2017, that Aadhaar authentication should be made mandatory for registration of properties for

identification and prevention of benami property transactions.

As per directions from the Centre, every sub-registrar office should have provisions for readily

enrolling citizens and provide them with Aadhaar number if they do not have one. Once the

proposal comes into force, an applicant executing the registration of a deed will be required to

provide the Aadhaar number along with other details. According to registration department

sources, once approved by the government, all the registration under an Aadhaar number can be

easily tracked from any office. Also, since the process of integration of the registration department

with the revenue department is underway, the Aadhaar details will be readily available in the

village records once the property registration is completed.

Even before the Centre asked the states to use Aadhaar for property registration, the state revenue

department had in 2012 come up with the idea of unique thandaper number (UTN), a unique 10-

digit alphanumeric number. The first two digits would be alphabets that would capture the details

like district, taluk and village and the remaining eight digits would be the unique thandaper

assigned to each land holder in the state. However, the UDF government did not proceed with the

idea.

“Now that a policy decision has been taken, the government is likely to give clearance for the

proposal of the registrations department as well. This decision to link land details with Aadhaar

is the best in terms of implementing the Kerala Land Reforms Act in its true letter and spirit,” a

senior government officials said.

At present, individuals are allowed to hold a maximum of 7.5 acres and families a maximum of

15 acres. Since there is no single number linking all transactions, it is impossible to know how

much land an individual or a family is holding in various parts of the state. Once Aadhaar is

linked, the land held under a single Aadhaar number can easily be detected.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/aadhaar-card-likely-to-be-must-in-land-deals-in-kerala/74184046?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-19

Goa legalises 170 unauthorised buildings

The remaining applications are pending at various stages of processing before the respective

deputy collectors and sub-divisional offices (SDOs).

The state government has legalised 170 structures of the total 8,307 applications it received for

regularisation of unauthorised structures,since it introduced the legislation in 2016. The

remaining applications are pending at various stages of processing before the respective deputy

collectors and sub-divisional offices (SDOs).

In a written reply, revenue minister Jennifer Monserrate, during the Goa legislative assembly’s

budget session earlier this month, said the deputy collector of Panaji has approved ten

cases, Mapusa, 46, Bicholim, 10, Sattari, 7, and for Pernem, 97 cases were disposed of, and

structures legalised.

Over 400 cases are pending before the SDO and deputy collector, Panaji, due to various reasons.

In some cases, a matter linked to the applicant’s case is pending in the court, rendering the deputy

collector unable to process the application.

In some cases, an inspection has been carried out and the reports are awaited, while in others, the

applications cannot be processed as all the required documents have not been submitted.

Sometimes, applications are pending if the area of the construction for which legalisation has

been sought, exceeds what is permitted under law— and in these cases, appeals are pending before

the revenue secretary.

In many cases, notices have been issued, but the site inspection is yet to be carried out. Some

applications are in the final stage of disposal.

Pendency of cases before the deputy collector, Mapusa, is also huge, and will be likely be

disposed of in the next few months, an official said.

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/goa-legalises-170-unauthorised-buildings/74184143?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-19

He said it would take more than two years to clear all the applications pending before deputy

collectors in the state, owing to their other responsibilities. Any person who carried out

unauthorised construction in the property specified in the act, before February 28, 2014, were

eligible to apply for regularization of unauthorised structure.

The government had twice extended the last date to receive applications.

Unauthorised constructions that fall within the limits of protected forests, wildlife sanctuaries,

area covered under the coastal regulation zone, no development zone, open spaces, public land,

areas declared eco-sensitive zones, Khazan land and those that obstruct natural water channels

will not be considered for legalisation.

________________________________________________________________________________________________

South Delhi civic body may collect garbage charges with property

tax

The SDMC commissioner has directed the property tax department to consider the

proposal for incentivising the tax payers if they make a one-time annual payment of user

charges along with the property tax.

With the levying of user charges for garbage collection back on the agenda, South Delhi

Municipal Corporation (SDMC) may collect it along with property taxes.

The SDMC commissioner has directed the property tax department to consider the proposal for

incentivising the tax payers if they make a one-time annual payment of user charges along with

the property tax.

Confirming that the proposal is under consideration, a senior official said, “The user charges

cannot be legally added to property taxes but we are trying to incentivise their one-time payment.”

While a Geospatial Delhi Limited survey says SDMC’s four zones have around 14 lakh

households, the municipal data reveals 4.5-5 lakh of these houses pay property taxes.

The user charges were approved by the court in February 2018. For residential areas, these are

expected to vary between Rs 50 and Rs 200 per month, depending upon the plot area. While

residential dwellings up to 50sq m will be charged Rs 50 every month, those between 50 and

200sq m will have to pay Rs 100 and all units above 200sq m Rs 200 per month, the highest slab

in the residential category, said a senior official of the sanitation department, citing a notification.

Similarly, the street vendors will be charged Rs 100 and commercial establishments like shops,

eating places, dhabas and sweet shops Rs 500. For larger commercial units, falling under the bulk

garbage generator category, the monthly charges are likely to vary between Rs 2,000 and Rs

5,000.

While the charges for unstarred hotels will be Rs 2,000, it will be Rs 3,000 for those up to the

three-star category and Rs 5,000 above that, the official explained. Party lawns, Banquet halls,

big godowns and cold storage facilities will also be charged Rs 5,000.

North Delhi Municipal Corporation is also finalising its procedure to levy user charges for

garbage collection.

AAP had opposed the idea last time.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 19, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/south-delhi-civic-body-may-collect-garbage-charges-with-property-tax/74200815

Nashik civic body levies fine on 87 housing societies for defunct rain

pits

As per norms, it is mandatory for residential buildings, societies and apartments

constructed on at least 500 sqm of land to have rainwater harvesting systems.

The civic administration has slapped notices on 87 housing societies and apartments and

recovered fine to the tune of Rs 83,000 from them since January this year as the rainwater

havesting systems installed on their premises were found to be defunct.

As per norms, it is mandatory for residential buildings, societies and apartments constructed on

at least 500 sqm of land to have rainwater harvesting systems. While some residential societies

and apartments have not put in place the infrastructure, there are others that have installed the

rainwater harvesting systems, but they are lying defunct.

The public works department of the Nashik Municipal Corporation (NMC) has started a survey

based on the directions issued by municipal commissioner Radhakrishna Game.

“We have started conducting a survey of housing societies and apartments to ensure they have

installed rainwater harvesting systems. Only installing the system is not enough, it should be

functional as well,” said officials.

“So far, we have surveyed 583 residential buildings in the city since January 1. During the survey,

we found rainwater harvesting system operational in 335 residential buildings, while the facility

was lying defunct in 248 buildings,” said civic officials.

“Of the 248 residential buildings where the rainwater harvesting system is lying defunct, we have

issued notices and slapped fines of around Rs 1,000 each on 87 buildings. Notices will soon be

slapped on 161 residential buildings for not operating their rainwater harvesting system,” said

sources in the NMC.

Apart from this, NMC has also started making provisions for rainwater harvesting at its own

buildings and properties. The civic administration has over 1,000 properties of which it has

possession over 145, while the remaining ones have been leased out to various social outfits. The

NMC has decided to install rainwater harvesting system in all its properties.

The civic administration has zeroed in on 110 plots, including its own buildings and properties,

where they will install the rainwater harvesting system in the next couple of months.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-civic-body-levies-fine-on-87-housing-societies-for-defunct-rain-pits/74184117

Dehradun civic body to install over Rs 1 lakh streetlights

The officials added that DMC has almost achieved its target of installing 43,000 LED

streetlights in the old wards but works are yet to start in the 32 new wards.

Dehradun Municipal Corporation (DMC) is going to install more than 1

lakh LED streetlights across all 100 wards of the city by the end of this year, officials claimed on

Monday.

The 68 old wards will get 43,000 new LED streetlights while the 32 new wards will be lit up with

65,000 LED streetlights.

The officials added that DMC has almost achieved its target of installing 43,000 LED streetlights

in the old wards but works are yet to start in the 32 new wards. At present, the streetlights in the

new wards have sodium bulb which are to be replaced with the LED ones.

Also in most of the new wards, there is a need to erect poles as well. According DMC estimates,

the LED streetlights are likely to increase the electricity bill by around 40% but they will have a

better lifespan as compared to the sodium ones.

Meanwhile, DMC officials also conducted a raid in the Niranjanpur market on Monday for

polythene bags. As many as 200 polythene bags were confiscated.

DMC officials claimed they have issued a total fine of Rs 1 lakh (Rs 500 per polythene) during

the raids. The fines were issued for violating Uttarakhand’s anti-spitting and anti-littering

legislation enacted in 2016.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/lighting/outdoor-lighting/dehradun-civic-body-to-install-over-rs-1-lakh-streetlights/74196183

Pimpri Chinchwad civic body for 'rational' property tax system to

boost revenue

The property tax department of the Pimpri Chinchwad Municipal Corporation (PCMC)

has proposed rationalization of the taxes of these properties.

Taxes for old properties in Pimpri Chinchwad assessed in 2006-07 may increase by up to 2.5

times if the civic administration has its way.

The property tax department of the Pimpri Chinchwad Municipal Corporation (PCMC) has

proposed rationalization of the taxes of these properties. It claimed that the move would fetch an

additional revenue of Rs100-Rs150 crore in the 2020-21 financial year.

“There will be no change in the taxes on the new properties,” municipal commissioner Shravan

Hardikar told TOI after presenting the draft budget of 2020-21 with an outlay Rs6,627.99 crore

and revised budget of 2019-20 with a Rs 6,187-crore outlay to PCMC standing committee

chairperson Vilas Madigeri on Monday.

Though the draft budget has not proposed any increase in the property tax rates, the civic body is

eyeing a tax rationalization to reduce the difference in the taxes of the old and new properties in

an area.

Hardikar said, “The rateable value of properties was frozen in some areas in 1996. The value was

subsequently changed in a way that the old properties were not affected. This has created a

massive gap between the taxes of the old and new properties in an area.”

He added that the civic body would consider the depreciation of old properties while conducting

rationalisation. “This will lead to an increase in the property tax of the old properties by 2-2.5

times. The municipal commissioner has powers to decide the rateable value of properties and

there is no need to take the general body’s (GB) approval for it. Properties assessed before 2006-

07 will be identified for rationalisation. These constitute 30-40% of the total properties in the

city,” Hardikar said.

Among the other major highlight of the draft budget proposals are the plan to raise Rs400 crore

through bonds for environmental services and water supply projects. Hardikar said, “We will

need around Rs600 crore in the next few years for implementing projects to have water security

for the next 30 years. We want to implement projects to bring water from the Bhama Askhed and

Andra dams. We also want to increase the pumping capacity of the Ravet pumping station. But

the annual income of the department is only Rs75 crore.”

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/pimpri-chinchwad-civic-body-for-rational-property-tax-system-to-boost-revenue/74184096

About 500 beneficiaries fudged details for PMAY grants in

Ghaziabad

P K Sharma, project officer, District Urban Development Agency (DUDA), said they are in

the process of assessing the number of such beneficiaries and the exact amount.

About 500 beneficiaries fudged details of their income certificates to fraudulently avail grants

worth at least Rs 2.5 crore under the Pradhan Mantri Awas Yojana (PMAY), according to sources

in the nodal agency authorised to release the funds for constructing the dwelling units.

P K Sharma, project officer, District Urban Development Agency (DUDA), said they are in the

process of assessing the number of such beneficiaries and the exact amount.

“The amount that went into the wrong hands is still being ascertained. At this point, I can confirm

that we received numerous complaints that beneficiaries fudged income certificate details to avail

grants under PMAY. After initial investigation, it was found to be true in many cases. We will

issue recovery notices to all such beneficiaries,” he said.

Highly placed sources said that some officials in one of the surveyor agencies hired by DUDA to

verify beneficiaries’ documents may have been complicit and taken bribes to overlook

discrepancies in income certificates.

“We had engaged three surveyors, which were entrusted with the responsibility of verifying

documents submitted by beneficiaries seeking grants under PMAY,” said Sharma.

PMAY was launched on June 1, 2015 by Prime Minister Narendra Modi to cater to housing

requirements of the urban poor and slum-dwellers. Among those who can avail grants are people

whose annual household income is up to Rs 3 lakh and who are in posse-ssion of land measuring

at least 30sqm.

“A grant of Rs 2.5 lakh is given to such beneficiaries in three installments. So far, we have given

Rs 50,000 each to 21,000 beneficiaries as the first installment, Rs 1.5 lakh each to 14,500

beneficiaries as the second and Rs 50,000 each to 4,500 beneficiaries as the third,” added Sharma.

This is not the first instance of irregularities in the scheme. In June 2019, seven Arthala residents

had been served recovery notices after it was found that they were given grants of Rs 50,000 each

under PMAY, but the land they had shown in their documents turned out to be encroached.

However, the administration is yet to recover dues from them.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 18, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/about-500-beneficiaries-fudged-details-for-pmay-grants-in-ghaziabad/74184023