10-Oct-2019

06-Dec-2019

CREDAI Bengal Daily News Update | 06.12.19

RBI keeps policy rates on hold despite economy fears

Many economists had predicted that the central bank would cut the repo rate by 25 bps.

The Reserve Bank of India (RBI) kept its key lending rate on hold in a surprise decision on

Thursday, despite a worrying slowdown in the country that prompted the central bank to sharply

reduce its economic growth forecast to 5% for the year through March.

The six-member monetary policy committee (MPC) unanimously voted to hold the key repo

rate at 5.15% while the reverse repo rate was also held at 4.90%.

The RBI reiterated that it would maintain an accommodative stance as long as it is necessary to

revive economic growth which slowed to 4.5% in the September quarter from 7% a year ago, to

stand at its lowest in more than six years.

"The MPC recognises that there is monetary policy space for future action. However, given the

evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this

juncture," the committee said in a statement.

A Reuters poll of 70 economists had predicted the RBI would cut its repo rate by 25 bps and

then by another 15 bps in the second quarter of 2020, where it will stay at least until 2021.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/rbi-keeps-policy-rates-on-hold-despite-economy-fears/72381415

Speed up execution of relief measures: Realtors

The sector is hoping that the recent measures, including setting up of a distress fund,

would help it get out of the crisis that it finds itself in, and wants the government to show

some urgency rather than stick to announcements.

The real estate sector, hit by liquidity crisis, sluggish sales and debt trap, is seeking emergency

lifeline from the government that has announced several measures, but the actual

implementation of these steps is yet to gather pace.

Realty developers have been expressing concerns over the slowness at which things are moving

despite the announcement of setting up a Rs. 25,000-crore fund to support completion of stuck

housing projects across the country.

“The government had first announced setting up of this fund in September and expanded its

scope in November while relaxing key conditions, but the ball is yet to start rolling,” said one

leading realty developer who wished not be identified.

The sector is hoping that the recent measures, including setting up of a distress fund, would help

it get out of the crisis that it finds itself in, and wants the government to show some urgency

rather than stick to announcements.

“With slide in GDP growth rate, the government has introduced a slew of new fiscal policy

measures aiming to reinforce confidence by slashing corporate tax rate in order to boost private

sector investment, announced AIF as a stressed funds provision for the revival of stalled

projects,” said Niranjan Hiranandani, national president of realtors’ body, the National Real

Estate Development Council (NAREDCO).

But he pointed out that the key to its success lies in quick execution of these measures which

will not only boost the sluggish sector but will kick-start the economy as well.

“While the last-mile funding is good for stuck housing projects, the sector as a whole needs

support. Sales is vanity, profit is sanity and cash-flow is the reality for us. We are not asking for

subsidy or cash (funds), we are asking for time. We are sitting on a (debt) bomb which can

explode any time,” said Jaxay Shah, chairman of Confederation of Real Estate Developers

Association of India (CREDAI). “We are on the cliff and therefore need support quickly.”

Indian property sector’s debt exposure, that continues to be the biggest stress factor for the

segment, stands at $93 billion including advances by non-banking finance companies (NBFC)

and housing finance companies, showed recent data from ANAROCK Property Consultants.

Newspaper/Online ET Realty(online)

Date December 06, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/speed-up-execution-of-relief-measures-realtors/72392901

Of this, about $21 billion is under some pressure, but has the potential to get resolved with

quick steps. In fact, the stress on this segment of the debt is largely on recovery of interest and

not on principal amount. However, $14 billion, or about 16%, is under severe stress.

According to recent media reports, the central bank is likely to weigh proposals from the

government to allow one-time restructuring of realty developers’ debt. Hiranandani reckons that

apart from the positive measures initiated by the government, the Indian economy needs more

measures such as restructuring of bad loans to avoid companies with positive networth turning

negative and becoming NPAs due to short-term liquidity crisis.

“One-time rollover, as done during the Lehman crisis in 2009, will be a right move to resurrect

the economy,” Hiranandani said.

In September, the government had announced a last-mile fund with size of Rs. 20,000 crore

which was expanded by another Rs. 5,000 crore in November. The special funding window is

expected to now accommodate more stalled projects as the eligibility criteria has also been

relaxed to cover even projects that are classified as non-performing assets by lenders and those

that are facing bankruptcy proceedings at the National Company Law Tribunal (NCLT),

provided they are not referred to liquidation.

According to government estimates, around 458,000 housing units across 1,600 stuck projects

are likely to benefit, against an earlier estimate of 3 lakh units.

“While the revisions in eligibility criteria appreciably expand the project coverage under the

fund, especially given the large number of stressed projects which have been referred to NCLT

or classified as NPA already, our initial concerns on the adequacy of the fund, the efficacy and

timeliness of implementation, and demand risks for the unsold inventory associated with these

projects remain,” said Shubham Jain, senior vice president and group head at ICRA.

As per the rating agency’s estimates, about Rs. 35,000-45,000 crore would be required to fund

the completion of the revised quantum of 458,000 eligible dwelling units. Thus, even the

enhanced fund size of around Rs. 25,000 crore may be insufficient to cover construction cost for

all the eligible houses.

Moreover, while some clarity has been provided on the modus operandi of the fund, with the

same being created as a category-II AIF managed by SBICAP Ventures to provide priority debt

funding to the eligible projects, the nuances of the final investment policy, and its impact on

project selection will be a key lookout area.

The government, in its efforts to revive the economy, is looking to provide relief to the housing

sector, and eventually homebuyers, who have been waiting to take delivery of their homes by

setting up this distress fund. Realty developers and industry observers believe that while the

intentions are good, the government needs to set the wheels in motion as early as possible

________________________________________________________________________________________________

PMO focused on infusing liquidity in construction sector &

creating jobs

Over the last few years increasing number of multi-crore infrastructure and construction

projects got entangled in legal issues and court proceedings, virtually blocking growth of

India's most promising business sector.

In a bid to boost economy and revive the construction sector in the country, the Narendra

Modi government has directed all ministries and departments to expedite pending payments to

contractors and construction companies. The objective is to infuse liquidity in the market and

create more job opportunities.

Over the last few years increasing number of multi-crore infrastructure and construction

projects got entangled in legal issues and court proceedings, virtually blocking growth of India's

most promising business sector. Hitherto, the construction sector was providing one of the

largest segments of direct and indirect employment across the country.

Prime Minister Narendra Modi had instructed NITI Aayog in 2016 to find a breakthrough in

this direction and later the Cabinet Committee on Economic Affairs (CCEA) approved various

measures to infuse liquidity in the construction sector. Yet certain legal hassles remained.

Recently in a letter (dated November 28, 2019) the Project Management and Appraisal Division

(PAMD) of Niti Aayog instructed the Union Law Ministry and the departments concerned to

ensure that contractors are paid 75 per cent of arbitral awards against bank guarantee.

"The CCEA has considered proposal of NITI Aayog (on November 20) and has approved that

75 per cent of such payments will be paid by the government entities to contractors against a

bank guarantee and not for its interest component," says the confidential letter addressed to

Cabinet Secretary, Law Ministry and other departments concerned.

The letter further reveals that the Attorney General of India in consultation with the department

of legal affairs will ensure that process of providing legal opinion to Government entities

relating to payments will be completed within 30 days. In simpler words, the PMO wants that

payments should not be subject to any further legal hindrances, and should be released on a

priority basis to infuse liquidity in the construction sector as soon as possible.

The letter of PAMD says that all concerned ministries "shall issue instructions to respective

government entities for taking necessary action on the issue expeditiously".

The instructions have to be given, says the letter, to "all Public Sector Undertakings of Central

government, all autonomous organisations of Centre and companies wherein paid up share

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/pmo-focused-on-infusing-liquidity-in-construction-sector-creating-jobs/72382996

capital of Central government is more than fifty per cent." Sources in the NITI Aayog said that

primary objective of the government is to release payment to contractors in a bid to revive the

entire construction sector and ultimately boost the commercial ecosystem of the country which

seems to be slowing down.

________________________________________________________________________________________________

UP-RERA send letters to over 1200 realtors informing about stress

fund

The investment manager will take a call if there is any need to change the developer for

the project. They will also determine the returns based on the risk profile and specifics of

each project.

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has sent letters to 1227

realtors across the state informing them about the benefit of stress fund scheme announced by

central government recently.

"The step has been taken in order to ensure that the promoters of such projects are aware of the

scheme so that

the projects are completed, and the home buyers of such projects are able to get their home,"

said the authority in a media release.

The authority also held a meeting in November with all promoters informing them about the

scheme so that they are able to apply for the last mile funds under the stress funds in time and in

a proper manner.

Eligibilities which a project should meet to be able to avail the said fund:

1.Project should be RERA registered

2.Project is stalled due to lack of funds

3.Project falls in affordable and middle-income group segment

4.Project should be net worth positive

5. Pricing of units shall not be more than Rs 1.5 crore, if the project is located in NCR region

and upto or less than Rs 1 crore for rest of India

6.Priority for projects very close to completion

7. Carpet Area of housing units should not exceed more than 200 sq meter

The central government in November had proposed fund of Rs 25,000 crore to complete

pending realty projects. Out of the total, government infused upto Rs 10,000 crore initially and

the rest is to be contributed by banks, LIC and other sources.

The fund will be set up as a Category-II AIF (Alternate Investment Fund) debt fund registered

with SEBI and would be professionally run. For the first AIF under the special window,

SBICAP Ventures has been engaged to be the investment manager.

Newspaper/Online ET Realty(online)

Date December 06, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/up-rera-send-letters-to-over-1200-realtors-informing-about-stress-fund/72393122

The investment manager will take a call if there is any need to change the developer for the

project. They will also determine the returns based on the risk profile and specifics of each

project.

The fund will supervise the disbursement of capital and monitor the execution of projects by the

developer

directly or through third party services. Existing lenders would be consulted as part of the

sanction process.

Net-worth positive projects are those projects where the value of receivables plus the value of

unsold inventory is greater that the completion cost and outstanding liabilities at the project-

level.

Home-buyers have been advised to reach out to their respective lending institutions to seek

necessary guidance for additional borrowing or revival of their existing home loans within the

existing legal and regulatory framework and standard board approved policies of the lending

institutions.

_______________________________________________________________________________________________

Gurugram: HSPCB, MCG fine over 20 construction sites for

violating GRAP measures

The HSPCB and MCG have collected Rs 1.60 crore as fines so far this year, revealed an

RTI application.

As the level of toxic air started peaking once again in the city, the state pollution board has

imposed fines on 21 entities for violating various graded response action plan (GRAP) measures

and dust pollution control norms.

The HSPCB and MCG have collected Rs 1.60 crore as fines so far this year, revealed an RTI

application.

While a penalty of Rs 53.5 lakh was imposed by HSPCB (north), Rs 1.5 lakh was recovered by

the corporation. Also, HSPCB (south) has collected Rs 1.10 crore as fines for garbage

burning and construction and demolition waste disposal.

Since HSPCB can only take action against big construction sites, MCG has ensured that small

construction sites follow all norms laid down by the union environment ministry.

Kuldeep Singh, regional officer, HSPCB (north), told TOI, “Strict action has been taken against

violators. It should be noted that penalties were also recovered from government agencies and

agencies hired by various government organisations.”

Experts, however, felt that the actions taken were not enough to tackle pollution rule violations.

Aseem Takyar, who filed the RTI application, said, “It is impossible to believe that

the pollution control board in the north region of the city has taken action against only nine

construction sites since April 2018. Various types of construction norm violations are so

rampant across the city.”

On November 4, the Supreme Court had imposed a blanket ban on construction activities across

Delhi-NCR.

HSPCB sources told TOI that most penalties were imposed after by the apex court ordered

curbs on such activities.

In April 2015, the National Green Tribunal (NGT) issued strict instructions to the civic

authorities and monitoring agencies (HSPCB), asking them to check dust pollution caused by

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-hspcb-mcg-fine-over-20-construction-sites-for-violating-grap-measures/72386358

construction sites.

The green tribunal also instructed the authorities to strictly impose a fine of up to Rs 5 lakh on

builders who are found to be violating the 2010 construction guidelines of the Ministry of

Environment and Forests and Climate Change (MoEF&CC).

The NGT had made it mandatory for construction sites to use tarpaulin sheets to cover their

building materials.

Developers have also been asked to cover construction materials while transporting them, use

sprinklers at sites, ensure proper collection, management and recycling of waste and provide

masks to workers.

There are more than 1,200 big construction sites in and around the city. However, there is no

official data of small construction activities going on.

The MCG also imposed a fine of Rs 12,000 on six people for violating GRAP measures on

Wednesday. These violations included garbage dumping and burning. Of the six challans, two

to the tune of Rs 10,000 were issued for garbage burning alone.

“We continue to take action against those who violate the norms laid out as per the graded plan

by issuing challans. On Wednesday till 1pm, MCG issued two challans each for garbage

burning and dumping. A penalty of Rs 1,000 was imposed for garbage dumping and Rs 10,000

for waste burning on Wednesday,” said an MCG official, adding that water is still being

sprinkled on roads and trees to fight dust pollution. The civic body has been cleaning up major

stretches of the city during nights using sweeping machines.

According to the report consolidated by MCG, a fine of Rs 14,47,000 was imposed on those

violating the norms under GRAP between November 1 and November 24. About 296 notices

have been served on several violators during the same period.

In an attempt to keep a check on pollution level, the graded plan measures have been

implemented in Gurugram since October 15. Following the rollout, a number of notices were

issued for flouting construction norms, garbage burning and dumping.

Haryana chief secretary Keshni Anand Arora had chaired a video conference meeting on

November 4 to review the suitable actions taken by the authorities to fight air pollution.

The district administration has already set up several teams to keep a check on the pollution

levels and 49 hotspots have been identified.

Moreover, the Environment Pollution Control Board has divided the district into six industrial

clusters for effective implementation of the measures.

________________________________________________________________________________________________

Parliament passes bill to give ownership rights to unauthorised

colonies' residents in Delhi

The National Capital Territory of Delhi (Recognition of Property Rights of Residents in

Unauthorised Colonies) Bill, 2019 was passed by a voice vote in Rajya Sabha.

Parliament on Wednesday passed a bill to grant ownership rights to people living in

1,731 unauthorised colonies in Delhi, benefiting eight lakh families.

The National Capital Territory of Delhi (Recognition of Property Rights of Residents in

Unauthorised Colonies) Bill, 2019 was passed by a voice vote in Rajya Sabha.

It was already passed in Lok Sabha on November 28.

Replying to the debate in the Upper House, Urban Development Minister Hardeep Singh

Puri said that the bill would soon get the President's nod and the work of uploading maps of

1,731 colonies would be completed.

"We have already uploaded maps of 1,130 colonies. After uploading all maps, we would give

15 days' time for filing objections (by resident welfare associations and other stakeholders)," he

said.

"We would open the filing of application by resident from December 15 and a dedicated portal

for that would also be provided," the minister said.

About empowering women under the bill, he said that the registration of property in these

colonies would be done "either in the name of women head of the family or co-jointly (with

male member)".

He also told the House that progressive names would be given to these colonies.

About consideration of other colonies falling in forest areas, Archaeological Survey of India

protected land, Zone O, Yamuna flood plains and in affluent categories, he said that these are

not included in this bill and would be taken up separately.

About the stamp duty and other charges for registration of house in these colonies, the minister

said that it would not hurt anybody as this is on nominal basis.

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/parliament-passes-bill-to-give-ownership-rights-to-unauthorised-colonies-residents-in-delhi/72380535

Explaining why the colonies were not authorised on the basis of an executive order, he said that

there was a Supreme Court judgement on these type of properties and the bill was required in

view of this.

The Supreme Court in its judgement in 2011 had held that sale agreement or General Power of

Attorney or Will transactions are not 'transfers' or 'sales' and that such transactions cannot be

treated as completed transfers or conveyances and they can continue to be treated as existing

agreement of sale.

Earlier participating in the debate, Congress member Digvijay Singh had said that when the

delineation was done by the central government, the Delhi Government should have given

ownership right to these residents with executive orders and there was no need for this bill.

The minister said, "I am confident that our job (of providing ownership to resident of

unauthorised colonies) would be done for eight lakh families."

The minister told the House that he was working on the issue since 2017 when he took charge

of the ministry.

Before passing of the bill, Congress member Jairam Ramesh asked the minister to give some

other nomenclature to unauthorised colonies like duly authorised.

He was of the view that these people were deprived of their rights due to slow administrative

actions.

The minister also told the House that this bill could act as a model for other states facing the

same issues.

He expressed dismay that in 2015 the AAP Government had promised in its action plan that

they would regularise these unauthorised colonies within one year of taking charge of Delhi

Government.

The minister also said, "We (all parties and governments) are to be blamed for their (poor

living) conditions (in unauthorised colonies)."

The minister thanked all 18 members who participated in the debate and supported the bill but

said that some of them gave "ostensible support" to the draft law.

The bill states that there has been a phenomenal increase in the population of the National

Capital Territory of Delhi in the last few decades owing to migration and other factors.

However, it says, the development of planned housing colonies has not kept pace with the

requirements of burgeoning population which resulted in increase of unauthorised colonies.

In view of the socio-economic conditions of the residents of the unauthorised colonies and

ground realities, it is desirable to recognise and confer rights of ownership or transfer or

mortgage to the residents of such colonies, the Bill said.

It will be done "on the basis of Power of Attorney, Agreement to Sale, Will, possession letter

and other documents including documents evidencing payment of consideration and to facilitate

development or re-development that may improve existing infrastructure, civic and social

amenities which may lead to better quality of life," it added.

It also provides for levy of the stamp duty and registration charges on the amount mentioned in

the conveyance deed or authorisation slip issued by the Delhi Development Authority and non-

payment of any stamp duty and registration charges on any previous sale transactions made

prior to the last transaction.

________________________________________________________________________________________________

Jaypee homebuyers' internal voting put on hold

Over 22,000 Jaypee Infratech homebuyers had opted for internal voting that started on

Wednesday, but it was put on hold after some buyers raised objection on the legality of it.

An internal voting to assess the leaning of homebuyers to decide on which company should

complete the stuck projects of Jaypee Infratech has been cancelled, three homebuyers aware of

the development said.

Over 22,000 Jaypee Infratech homebuyers had opted for internal voting that started on

Wednesday, but it was put on hold after some buyers raised objection on the legality of it. The

buyers have also approached the Insolvency and Bankruptcy Board of India regarding the

internal voting issue.

State-owned NBCC and Mumbai-based Suraksha Realty submitted their revised bid on Tuesday

and presentation of resolution plan will happen on Saturday before the committee of creditors

(CoC). Formal voting to decide on the successful bidder is scheduled for Sunday.

The homebuyers, however, had decided to go for internal voting to assess the leaning of

residents before going for the final voting.

“Most of the homebuyers favour NBCC and wanted it to be as H1 bidder. This means that in the

final voting NBCC should be given the chance of voting first and if it manages to get 66% of

the buyers’ vote, there will be no need for voting for Suraksha. However, with the internal

voting being on hold now, the CoC will decide whether the voting for NBCC and Suraksha will

happen simultaneously or one by one,” said one of the homebuyer.

Voting is likely to end by December 11 and the project winning bid will need at least 66%

votes.

A Suraksha Realty team will be in Delhi on Friday and will meet homebuyers to inform them

about the changes they have made in the fresh bid.

NBCC has advanced the completion date from 48 months to 42 months and has also offered

100 acre additional land to the lenders. It was offering 1,426 acres of land earlier and is now

offering 1,526 acres. It has also proposed to increase the concession agreement of Yamuna

Expressway by 10 years. Suraksha has revised the offer by upping its cash offer to lenders from

Rs 25 crore to Rs 175 crore.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 06, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/jaypee-homebuyers-internal-voting-put-on-hold/72392967

Mussoorie civic body seeks SIT probe into a property dispute with

Disco Enterprises

In a letter written to the DIG, ML Shah, the Executive Officer of MMC, has claimed that

Disco Enterprises withheld facts and bought the property that was under MMC

possession.

The property dispute between Mussoorie Municipal Council (MMC) and Disco

Enterprises Private Limited refuses to melt down with the city’s civic body demanding

an SIT probe into the matter.

In a letter written to the DIG, ML Shah, the Executive Officer of MMC, has claimed that Disco

Enterprises withheld facts and bought the property that was under MMC possession.

The move comes months after the district court ordered eviction of MMC from the property,

ruling in favour of Disco Enterprises co-owner Ajay Vaish. The MMC had taken the property

on lease in 1971.

Shah alleges that the disputed property was leased to the MMC for a period of 10 years by Ajay

Vaish in 2005. However, the MMC officials leased the property to Manav Vaish, the nephew of

Ajay Vaish, in the same year for unknown reasons.

Speaking to TOI, Ajay denied all allegations made by the MMC, while saying, “The matter is

sub-judice and thus, I would not like to comment on the issue,” Ajay said.

However, when TOI contacted Anuj Gupta, the chairman of MMC, said that the body would

fight this case in the high court and ensure that the possession of this property is handed back to

the MMC.

Meanwhile, police officials of the SIT cell told TOI that an SIT probe can’t be conducted as the

matter is sub-judice.

Notably in 1971, the MMC had taken a piece of land on rent from a resident, Zahida Khatoon

for setting up an ice staking rink. However, it could not set up an ice skating complex there and

built a tin structure where a roller skating rink was set up.

In 2003, this property was purchased by Disco Enterprises Private Limited from Khatoon and in

2005, this company leased the said property to MMC for a period of 10 years. Subsequently, the

MMC sublet this property to an individual for running a wedding hall under the name of

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/mussoorie-civic-body-seeks-sit-probe-into-a-property-dispute-with-disco-enterprises/72381766

Shagun Wedding Point.

In 2016, Disco Enterprises filed a suit for eviction against the MMC in the district court. MMC

lost the case in February, 2018 and Disco Enterprises gained the possession of this premises in

August this year.

________________________________________________________________________________________________

Ahmedabad: Realtor buys property near Vaishnodevi Circle for Rs

55 crore

The under-construction asset was controlled by a non-banking finance company (NBFC)

of Aditya Birla group and it has been bought from the NBFC.

After a long lull, Ahmedabad’s real estate market has finally seen some activity. A city realtor

has struck a deal to purchase an under-construction commercial property near Vaishnodevi

Circle in Ahmedabad for an estimated Rs 55 crore, said market sources.

The under-construction asset was controlled by a non-banking finance company (NBFC)

of Aditya Birla group and it has been bought from the NBFC. Located close to SP Ring Road

and SG Highway, the property was previously being built as corporate headquarters by Sintex

Industries Limited. However, construction has remained stalled for quite some time now.

According to sources, the deal is almost done but the final paperwork and some terms are

currently being settled. “The buyer firm has a very specific project that it wants to develop at

the site,” said a source privy to the development. “However, the developer is at an advanced

stage of negotiation as some terms have been agreed upon and a few others are still being

worked out.”

JLL India, a property consultant, was mandated to sell the property, said people in the know.

According to the consultant, total land (freehold) of the concerned premises is 7,084 square

metres and the built-up area is 4,20,886 sq ft.

The property can be used build a corporate house, hotel, hospital, student housing, or retail-

cum-commercial facility. Large industrial groups such as Zydus Cadila and Adani group have

established their corporate houses near the Vaishnodevi Circle.

Reports by a real estate consultant, Cushman and Wakefield, show that the Ahmedabad office

market recorded a net absorption of 282,985 sq ft for the quarter ended September 30. The

absorption was significantly higher compared to the previous quarter. The availability of quality

supply through new completions in recent quarters has resulted in improved occupier traction.

However, there were no significant transactions in the retail space during the third quarter of the

current calendar year.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/ahmedabad-realtor-buys-property-near-vaishnodevi-circle-for-rs-55-crore/72376857

UDH minister assures to bring amendments in Rajasthan housing

board act

As RHB witnessed immense success in filling its coffers through e-auction of unsold flats,

the minister praised the efforts of the officials.

The Urban Development and Housing (UDH) minister Shanti Dhariwal has assured to bring

amendments in the RHB Act 1970 which will empower the Rajasthan Housing Board to remove

encroachments from its land and boost infrastructure.

The minister made the announcement during the inauguration ceremony of the new project

‘Chowpatty’. Dhariwal said, “I am surprised that big organisation such as the RHB does not

have its encroachment wing and rights to recover its due. The draft of the amendment will be

tabled in the state assembly to empower the board.”

As RHB witnessed immense success in filling its coffers through e-auction of unsold flats, the

minister praised the efforts of the officials. Criticising the previous BJP government, the

minister said, “The last government failed to utilise the manpower and infrastructure resources

of the RHB and made it defunct. Our efforts have revived the hopes of strengthening the board

and we successfully sold flats.”

RHB commissioner Pawan Arora said that on the lines of Masala Chowk at Ramniwas Bagh,

the RHB department has launched hangout point by the name of Jaipur Chowpatty. The new

centre has been developed at Pratap Nagar, Sector 23 on a plot measuring 3,780 sq-metres. As

per the proposal, the board will construct 30 shops and will have space for 200 people. The

estimated cost of the project is Rs 4.18 lakh. Arora said, “The revenue earned after selling the

properties will be utilised to developed these infrastructure projects. Many other projects are in

pipeline too.”

During the real estate slump, the RHB earned Rs 166 crore by selling 1,011 flats and houses

across the state. Buoyed by the success, the board plans to continue with the auctions, offline

this time. “The board has planned to sell off more than 11,000 unsold flats/houses on discounted

rates through offline auction which started on December 2. The auction will be held every

Wednesday and list of the properties will be uploaded a week before on Friday.”

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/udh-minister-assures-to-bring-amendments-in-rajasthan-housing-board-act/72385924

Mumbai metro to pay rent for alternative homes to residents of

damaged Mahim buildings

Last month, residents of Laxmi Nivas and Meher Manzil said metro work had damaged

their buildings.

Residents of two buildings in Mahim damaged allegedly due to work on the Metro rail will be

paid rent for 11 months to take up alternative accommodation. The Metro rail agency, MMRC,

will pay the rent till the buildings are repaired.

Last month, residents of Laxmi Nivas and Meher Manzil said metro work had damaged their

buildings.

A resident of one of the buildings said, “MMRC has offered us 11 months rent as it feels that

the building can be repaired and does not need redevelopment. But a few tenants feel the

building must be redeveloped and MMRC should offer rent for alternative homes for four

years.”

Shiv Sena legislator Sada Sarvankar has held joint meetings between tenants of the two

buildings and MMRC. The structural auditor appointed by the tenants has said that the two

buildings need redevelopment.

MMRC refused to confirm whether it has offered the rent-and-repair offer. Its spokesperson

said, “...If need be by way of abundant precaution, [a] building is evacuated by the contractors

on mutually agreed terms with occupants till such time the building is repaired. This procedure

is being followed...”

The spokesperson said repairs will be done as assessed by experts approved by the civic body.

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Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-metro-to-pay-rent-for-alternative-homes-to-residents-of-damaged-mahim-buildings/72383999

Over 150 major buildings to be demolished for Bhopal metro

project

As many as 23 houses are listed partially demolished in Jinsi area, including one building

under the police department.

Metro rail requires a 10-metre wide clear area before core construction in congested areas of the

city can begin. This came to light during a meeting on Wednesday between Metro rail and

urban development officials.

On Chiklod Road alone, over 150 major structures -- a mix of residential and commercial -- will

have to make way for the Bhopal Metro rail project, according to a survey. The district

administration, Bhopal Municipal Corporation (BMC) and other departments will coordinate

this. As many as 23 houses are listed partially demolished in Jinsi area, including one building

under the police department.

Survey has begun for the Bhadbhada to Ratnagiri route. On the route, Metro will connect from

Raj Bhavan to the Pul Bogda bridge. The survey team comprised the district administration's

revenue wing. They were accompanied by officials of the MP Metro Rail Corporation.

The team started the survey from Raj Bhavan. Five metre wide area of government structures

along the route is to be taken for Metro rail construction. About 100 constructions on Lily

Talkies and Chiklod Road, will also have to pave way for the Metro rail. Many of these houses

will have to be removed, said a survey official, said tehsildar Devendra Chaudhary. “10-metre

wide road is needed for the smooth movement of Metro rail,” he said.

There is a Metro station planned opposite Minto Hall. Moving ahead and coming towards Lal

Parade Ground, about five metres of the police department’s campus would also be undertaken

for Metro rail development.

Around Lily Talkies' extension, the Metro rail will curve right to Chiklod Road. As per the

master plan, the road is supposed to be 80-feet wide. However, many of the illegal constructions

have made the road narrow. The chaotic stretch connects to MP Nagar, near Stud Farms, where

the Metro rail main depot is under construction.

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/over-150-major-buildings-to-be-demolished-for-bhopal-metro-project/72380314

A 40-year-old building at the Jinsi intersection and 22 other buildings and shops are also on the

route. The first of notice to the affected was served earlier this year. The area is expected to be

under possession of Metro rail by March next year.

The connect point will be the intersecting point of purple and red track. While Metro rail will

run in the elevated section around the congested Jinsi area, it will be underground in some

sections around Aishbagh.

________________________________________________________________________________________________

WeWork China to bring in non-core revenue of around $30 million

in 2020: Sources

The company last month said it would lay off around 2,400 employees globally, almost

20% of its workforce, to cut costs.

WeWork China has set out ambitious revenue goals for 2020 even though it faces staff cutbacks

and weak occupancy numbers at its properties across China, sources familiar with the matter

said, citing targets announced by the division's general manager at an internal meeting in

Shanghai on Wednesday.

Alan Ai told employees at the meeting that the firm has set a goal to bring in non-core revenue

of around $30 million in the year 2020 and for non-core revenue to account for more than 6% of

its total takings in the country, the sources said.

That would represent a significant increase in the revenue generated from technology services

and other products for tenants and shows one of the ways the office-leasing company hopes to

turn around its business.

The China division's global parent, WeWork, declined to comment.

WeWork is undergoing a broad restructuring after it was thrown a $9.5 billion lifeline by

Japanese technology conglomerate SoftBank Group Corp following a failed public offering and

the ouster of founder Adam Neumann.

The company last month said it would lay off around 2,400 employees globally, almost 20% of

its workforce, to cut costs.

WeWork owns 59% of WeWork China, whose other investors include Softbank, Hony Capital

and Trustbridge, according to the group's prospectus for its initial public offering.

The China division has been a sore spot for the company, burdened with low occupancy rates

and intense competition from local players. In 2018, WeWork China generated $99.5 million in

revenue, according to WeWork's IPO prospectus.

The revenue targets for the China division disclosed at the staff meeting suggest that the

company could be looking to achieve as much as $500 million in revenue from China next year,

Newspaper/Online ET Realty(online)

Date December 05, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/wework-china-to-bring-in-non-core-revenue-of-around-30-million-in-2020-sources/72382790

should non-core revenue account for a 6% share, according to Reuters calculations.

Ai did not discuss at the meeting how the company planned to achieve its non-core revenue

targets, one source said.

The company currently rents out office space in 120 buildings in 10 cities across China,

according to its website. In addition to major cities like Beijing, Shanghai and Hong Kong, it

also has facilities in Shenzhen, Guangzhou, Xi'an, Wuhan, and other smaller markets.

Occupancy rates for China were "around 60%" at the end of September, according to internal

company data seen by Reuters. Smaller cities, classified as "new markets", had an average

occupancy rate of 43%, while some cities like Wuhan and Xi'an had occupancy rates around

25%.

Ai also said during the meeting that layoffs were over in China and next year would be better,

one source said. Ai did not disclose how the cuts had affected its Chinese staff, but sources have

estimated that at least 100 people had left internal company messaging groups in the past two

weeks.

The non-core revenue target also marks a move to tilt revenues away from rents and towards

technology and other services. As of the middle of this year, non-core revenue, which consists

of "technology" and "business services," as well as paid events and WeWork Go, accounted for

less than 1% of the total revenue of WeWork China, according to one separate source.

WeWork Go offers a pay-as-you-go service for individuals who want to use WeWork office

space without paying monthly fees.

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