10-Oct-2019

06-Dec-2019

06-Jan-2020

CREDAI Bengal Daily News Update | 06.01.20

Realty bodies push to change affordable housing definition

"We recommend that the condition related to price cap of Rs 45 lakh be immediately

abolished and the benefits be restored to all the houses which has area less than 60/90

square metres," said President of CREDAI (National) Satish Magar.

With Finance Minister Nirmala Sitharaman set to present the Union Budget 2020-21 in

Febuary, real estate chambers have sought dilution in the definition of the affordable housing,

so that more properties could come under its ambit and avail the benefits.

Currently, the definition of affordable housing means a house or flat with carpet area up to 90

square metres in non-metropolitan cities and towns, and 60 square metres in metropolitan cities

and having value up to Rs 45 lakh, for both.

The Confederation of Real Estate Developers Association of India (CREDAI) has sought a

revision in the definition of affordable housing.

"Following definition may be made universally applicable across all government agencies:

'Affordable housing comprises units with a carpet area as defined under RERA that do not

exceed sixty square metres in the metros and 90 square meters elsewhere'," President of

CREDAI (National) Satish Magar said in the recommendation note.

The National Real Estate Development Council, in a recent note to the Finance Ministry, also

suggested that all the houses in Mumbai Metropolitan Region (MMR) and most of them in the

National Capital Region (NCR) do not qualify as affordable housing resulting in loss of benefit

of reduced GST of 1 per cent and also the benefit of tax exemption from such projects.

"We recommend that the condition related to price cap of Rs 45 lakh be immediately abolished

and the benefits be restored to all the houses which has area less than 60/90 square metres," he

said.

Apart from lower GST, another major benefit of affordable housing is that the segment has been

accorded the industry status, making projects eligible for cheaper bank loans.

Among other demands, developers also want a one-time roll over or restructuring of loans taken

by developers.

CREDAI, in its recommendation, has said: "Liquidity shortage continues to cause distress in

Newspaper/Online ET Realty (online)

Date January 06, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/realty-bodies-push-to-change-affordable-housing-definition/73115054

real estate. Hence, a one-time restructuring scheme with moratorium on principal and interest of

2 years is immediately needed."

In its recent note, NAREDCO also told the Finance Minister that recent measures by the

government to revive the realty sector have so far not yielded results and the government should

provide a one-time roll over or restructuring of loans taken by developers, among other

suggestions.

CREDAI President Magar also said that housing loan up to Rs 1 crore may be counted towards

'priority sector' and interest rates to be below 7 per cent effectively.

__________________________________________________________________________________________

________________________________________________________________________________________________

Newspaper/Online Millennium Post

Date January 06, 2020

BSNL has identified properties worth over Rs 20,000 crore for

monetisation: CMD

Meanwhile, a government source told PTI that the Ministry of Skill Development is

looking for a land parcel and the Department of Telecom (DoT) has offered BSNL land in

Ghaziabad to the ministry.

State-owned Bharat Sanchar Nigam Ltd has submitted details of 14 properties worth Rs 20,160

crore to the Department of Investment and Public Asset Management (DIPAM) as part of the

telecom corporations' ambitious asset monetisation plans, according to its chairman.

Meanwhile, a government source told PTI that the Ministry of Skill Development is looking for

a land parcel and the Department of Telecom (DoT) has offered BSNL land in Ghaziabad to the

ministry. The estimated value of that land is Rs 2,000 crore.

When contacted, BSNL Chairman and Managing Director P K Purwar said, "The corporation is

making all out efforts to monetise its assets and has identified 14 assets worth over Rs 20,000

crore through the DIPAM route".

Purwar said these land parcels are spread across India in locations like Mumbai,

Thiruvananthapuram, Chennai, Ghaziabad and other places.

In October last year, the government had approved a Rs 69,000 crore revival package for BSNL

and MTNL that includes merging the two loss-making firms, monetising their assets and giving

VRS to employees so that the combined entity turns profitable in two years.

The Union Cabinet headed by Prime Minister Narendra Modi had approved a plan to

combine Mahanagar Telephone Nigam Ltd (MTNL) -- which provides services in Mumbai and

New Delhi -- with Bharat Sanchar Nigam Ltd (BSNL) that services the rest of the nation.

Over the last few weeks, both the companies have launched their VRS plans and thousands of

employees of BSNL and MTNL have opted for voluntary retirement. The scheme will help

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/bsnl-has-identified-properties-worth-over-rs-20000-crore-for-monetisation-cmd/73107331

reduce BSNL's wage bill by 50 per cent and MTNL's by 75 per cent.

The two firms will also monetise assets worth thousands of crores in the next three years.

MTNL has reported losses in nine of the past 10 years and BSNL too has been in the red since

2010.

BSNL has initiated discussions with the Central Board of Secondary Education for sale of

specific land parcels. Moreover, the DoT has also sounded out the Ministry of Finance about

BSNL's plans to issue sovereign guarantee bonds. These could be floated as early as February,

once the requisite approvals come in.

_______________________________________________________________________________________________

Reliance Home Finance could land at NCLT

IDBI Trusteeship, which is representing the interests of RHFL’s non-convertible

debenture (NCD) holders, has appointed Shardul Amarchand Mangaldas as the legal

adviser for the affected investors, numbering about 20,000.

Debt investors of Reliance Home Finance (RHFL), a unit of Reliance Capital, are planning

legal action that may include a request for initiating recovery proceedings in the National

Company Law Tribunal against the stressed financier, which defaulted on bond repayments due

earlier this month.

Multiple industry sources aware of the developments told ET that IDBI Trusteeship, which is

representing the interests of RHFL’s non-convertible debenture (NCD) holders, has appointed

Shardul Amarchand Mangaldas as the legal adviser for the affected investors, numbering about

20,000.

“The legal firm has conducted a conference call with investors and has already prepared an

application draft on behalf of the investors,” one of the participating investors told ET.

Investors are weighing the option of filing the case in either the National Company Law

Tribunal (NCLT) or Debt Recovery Tribunal (DRT) to recover their money. IDBI Trusteeship

has already reached out to the company’s lenders for approval, said another person who

invested in RHFL bonds.

“The NCLT application is likely, but through the Companies Act, as there are certain instances

of irregularities,” said an investor.

A forensic report has also allegedly pointed to some deviations. ET could not independently

verify contents of the forensic report.

IDBI Trusteeship did not immediately comment.

A Reliance Capital spokesperson said that RHFL has sufficient assets to honour repayment

claims from its bond buyers.

“Reliance Home Finance has good quality retail assets and close to Rs 500 crore, (with) which

it wants to pay retail investors, but is unable to proceed with such payments owing to the

complete restraint placed by the banks, led by the lead lender, on making any preferential

Newspaper/Online ET Realty (online)

Date January 06, 2020

Link https://realty.economictimes.indiatimes.com/news/allied-industries/reliance-home-finance-could-land-at-nclt/73114968

payments."

The company also said that it is working on a resolution plan it wants to share with

bondholders.

“On the issue of trustees calling for full loan repayment, we have already called for a

debentureholders’ meeting and will be sharing the resolution plan as one of the agenda items,”

the spokesperson said in response to a query from ET.

RHFL had raised Rs 3,500 crore via public issuance of NCDs from about 20,000 investors.

If IDBI Trusteeship decides to file a case using the Insolvency and Bankruptcy Code (IBC), it

may have to approach the Reserve Bank of India (RBI). The central bank recently referred

Dewan Housing Finance (DHFL) to the dedicated insolvency courts in the first such case

involving financial companies.

“The IBC route is not actively under consideration for now,” said a person involved in the

matter.

The government has empowered RBI to refer any financial services company for insolvency

proceedings.

“The new amendment related to financial services companies (Sec 227 of IBC) is applicable

only when the administrator (RBI ) refers any such company to NCLT,” said Anil Goel, founder

of AAA Insolvency. “If a trustee wants to take a company to NCLT acting on behalf of

investors, it has to first approach the RBI.”

IDBI Trusteeship Services is yet to receive any confirmation from RHFL pertaining to principal

and interest due on January 3, it said in a note to investors.

On November 19, Swapan Kumar Bagchi, MD & CEO of IDBI Trusteeship Services, wrote to

RHFL’s chief investment officer, recalling the entire loan amount on the immediate maturity

date of January 3 after the company was downgraded to ‘D’, or default.

“In case you fail to make the payments…, the trustee shall be constrained to take such steps as

may be advised for enforcing the securities and realising the dues at your own risk,” the letter

said.

Nippon India Mutual Fund, SBI Mutual Fund, Indian Iron and Steel PF, an arm of sovereign

backed SAIL, Oriental Bank of Commerce, Emami group entity Frank Ross, the National Bank

for Agriculture and Rural Development (NABARD), and Maharashtra government-owned

SICOM were among those that invested in these bonds that were once rated AA+ - just a notch

lower than the highest grade.

_______________________________________________________________________________________________

Under stress, real estate sector most squeezed in Delhi, Mumbai

“Of the total real estate loan of $93 billion (around Rs 6.63 lakh crore), NCR, MMR and

Bangalore together account for a whopping 80% share ($74 billion, or Rs 5.20 lakh

crore),” Anarock said in a report.

The real estate sector is saddled with loans worth over Rs 6.63 lakh crore, of which alm-ost

15%, or roughly Rs 99,773 crore, is under ‘severe stress’, data from Anarock Property

Consultants revealed. Of the total loans under ‘severe stress’, Delhi-NCR and the Mumbai

Metropolitan Region (MMR) alone account for 93% of the share.

“Of the total real estate loan of $93 billion (around Rs 6.63 lakh crore), NCR, MMR and

Bangalore together account for a whopping 80% share ($74 billion, or Rs 5.20 lakh crore),”

Anarock said in a report. The exchange rate taken is Rs 71.23 for every $1.

Of the overall loan amount, around $14 billion (Rs 99,773 crore) is under ‘severe stress’ while

nearly 62% (around $58 billion, or Rs 4.13 lakh crore) is completely stress-free. The remaining

22% ($21 billion, or Rs 1.50 lakh crore) is under pressure, but can potentially be resolved, it

added.

Newspaper/Online Financial Express (online)

Date January 05, 2020

Link https://www.financialexpress.com/industry/under-stress-real-estate-sector-most-squeezed-in-delhi-mumbai/1813242/

Of the total Rs 2.49 lakh crore loan advances given to developers in MMR, nearly Rs 61,971

crore (25%) is currently under ‘severe stress’. This is almost double the total stressed loan

amount in NCR (at Rs 30,629 crore). The NCR real estate market has so far received loans

worth Rs 1.64 lakh crore from banks and NBFCs/HFCs, Anarock Capital managing director &

CEO Shobhit Agarwal said.

“Liquidity crunch in the country’s top two real estate markets is unrelenting. Both markets

collectively have loans worth $13 billion (around Rs 92,600) under ‘severe stress’ with

extremely poor prospects of recovery from the borrowing developers. Previously, many

developers engaged in high leveraging and also engaged in fund diversions. To compound the

problem, housing sales have remained tepid over the last few years, resulting in depleted cash

reserves,” he explained.

However, Bengaluru fares much better in terms of stressed loans. Merely 1% (or around Rs

1,140 crore) of the total Rs 1.14 lakh crore of real estate loans in the city is in the ‘red alert’

category, which is a result of better financial discipline of the city’s developers, lower demand

and supply mismatch as well as range-bound property prices to ensure gradual rather than

haphazard growth.

“Bangalore supersedes NCR and MMR in servicing its debt to banks, NBFCs or HFCs. The city

has much better stress-level readings with over 70% of the total loans completely stress-free. In

NCR, the stress-free share is at 53% and in MMR, it is 58% of the total loan advances,” the

report said.

Pune, Hyderabad and Kolkata received realty loans worth $3.7 billion (around Rs 26,361 crore)

each, of which nearly Rs 2,351 crore and Rs 285 crore is under ‘severe stress’ in Pune and

Kolkata, respectively. Interestingly, no loan amount in Hyderabad is under severe stress.

‘Others’ comprising close to 90 cities (Tier II, III and IV cities) across the country and the

overall ‘severe stressed’ loans in all these equals $470 million (around 3,349 crore). Some of

these cities include Ahmedabad, Kanpur, Chandigarh, Gwalior, Lucknow, Ranchi and Bhopal.

These cities collectively received real estate loans worth Rs 3.34 lakh crore.

_____________________________________________________________________

Supertech seeks Rs 1,500 crore from stress fund to complete 12

projects

The company said these 12 projects comprising 20,000 flats are at an advanced stage of

completion and it requires last mile funding to finish the pending works and deliver units

to homebuyers

Realty firm Supertech on Sunday said it has sought Rs 1,500 crore from the government's newly

created stress fund to complete its 12 ongoing housing projects at Noida and Greater Noida in

Uttar Pradesh.

The company said these 12 projects comprising 20,000 flats are at an advanced stage of

completion and it requires last mile funding to finish the pending works and deliver units to

homebuyers.

In November, the central government announced a Rs 25,000-crore fund to help complete over

1,500 stalled housing projects, including even those that have been declared NPAs or admitted

for insolvency proceedings.

The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered

projects with positive net worth will be provided funds.

Real estate developers were asked to apply to seek money from this fund.

"We have applied for stress fund of Rs 1,500 crore for our 12 projects nearing completion in

Noida, Greater Noida and Yamuna Expressway to finish 20,000 flats in 1-2 years," Supertech

Ltd Chairman R K Arora told PTI.

"We are eligible for stress fund and hope to get the same," he added.

Arora said the Uttar Pradesh government and state regulatory authority are helping builders in

making applications.

The Finance Ministry had said that the maximum funding would be Rs 400 crore for any single

project that will seek assistance from the 'special window' or the alternative investment fund

(AIF).

SBICAP Ventures has been appointed to manage the AIF.

Newspaper/Online ET Realty(online)

Date January 06, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/supertech-seeks-rs-1500-crore-from-stress-fund-to-complete-12-projects/73115033

The Centre would infuse Rs 10,000 crore in this fund, while the remaining would be provided

by SBI and LIC.

Lakhs of home buyers are stuck in various stalled housing projects across the country.

The National Capital Region is the most affected as many builders, including Amrapali, Unitech

and Jaypee Infratech, failed to give possession of flats on time.

Developers are banking on this fund not only to bail out the sector but also to help boost

sluggish demand in residential property market.

________________________________________________________________________________________________

SIT to investigate scams emerging in DDA's land pooling scheme

"When the initial probe of the DDA and the Delhi Police found that the complaints were

true, the EOW of the Delhi Police registered 13 FIRs in various cases," said Mishra.

Cases of fraud have popped up in connection with the ambitious land pooling scheme of

the Delhi Development Authority (DDA). The Economic Offences Wing (EOW) of the Delhi

Police has registered 13 FIRs and started an investigation.

O.P. Mishra, Additional Commissioner, Delhi Police (EOW), told IANS: "Various complaints

were received by the DDA as well as the Delhi Police in connection with the land pooling

scheme of the DDA which alleged that the real estate developers in the scheme took money in

the name of giving flats at low price. When the investors asked the developers for the flats, they

started threatening them."

"When the initial probe of the DDA and the Delhi Police found that the complaints were true,

the EOW of the Delhi Police registered 13 FIRs in various cases," said Mishra.

These developers used to trap the buyers in the name of the scheme. The investigation team has

also started to look into the social media accounts of these developers so that they don't miss out

on anything and make a strong case against them, said Mishra.

He added, "We can't nullify the fact that this scam has some international connection also as

some Nigerian gang is also alleged to be involved in it."

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/sit-to-investigate-scams-emerging-in-ddas-land-pooling-scheme/73107225

Aurangabad civic body considers three sites to construct PMAY

houses

The Aurangabad Municipal Corporation has received 52,000 applications, under the

PMAY. For the applications received for AHP, the AMC will be facilitating the

construction of a township.

In a good news to the urban poor aspiring for housing, the Aurangabad Municipal

Corporation (AMC) is considering three locations for central government’s housing

scheme Pradhan Mantri Awas Yojana (PMAY).

The municipal commissioner had visited the sites for the establishment of the township under

the scheme.

Pandey said that major lands are being reviewed near Aurangabad to build a housing project

that can accommodate 10,000 to 15,000 families.

“We have seen a government land in Karodi on Mumbai Highway but that is being considered

for National Sports University. A land in Chikalthana and a 250-acre land in Teesgaon are

being considered,” Pandey said. He added the AMC will finalise and get acquisition of the land

for a housing project by the end of February and the project will be initiated in the current year.

The PMAY-urban has three components to provide housing to the urban poor. One of the

component is credit-linked subsidy scheme (CLSS) under which, subsidy up to Rs 2.67 lakh per

house in housing loans are provided to beneficiaries of the economically weaker section (EWS).

Under beneficiary-led individual house construction (BLC), Rs.1.5 lakh is provided to eligible

families belonging to EWS categories. The third component is affordable housing in partnership

(AHP), under which assistance of Rs.1.5 lakh per EWS house is provided in the project, where

at least 35% of the houses are for EWS category and a single project has at least 250 houses.

The Aurangabad Municipal Corporation has received 52,000 applications, under the PMAY.

For the applications received for AHP, the AMC will be facilitating the construction of a

township.

Mayor Nandkumar Ghodele said the land acquisition for the project will be proposed to the

state government for its approval following which the project will be initiated with the funds of

the central government.

Newspaper/Online ET Realty(online)

Date January 04, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/aurangabad-civic-body-considers-three-sites-to-construct-pmay-houses/73093564

________________________________________________________________________________________________

Claims worth Rs 4,800 crore admitted from FD holders of DHFL

Nearly 55,000 public depositor holders, including retail and UP Power Corporation

Employees, have demanded payments aggregating to Rs 5,200 crore from the troubled

mortgage players as of December 17.

The Reserve Bank-appointed administrator of beleaguered Dewan Housing Finance Limited

(DHFL) has admitted close to Rs 4,800 crore of claims submitted by fixed deposit holders of

the company, a source said.

Nearly 55,000 public depositor holders, including retail and UP Power Corporation Employees,

have demanded payments aggregating to Rs 5,200 crore from the troubled mortgage players as

of December 17.

"The claims from fixed depositors that have been admitted, so far, are Rs 4,800 crore," a source

said.

With this, the total amount of claim received by the company's administrator, R

Subramaniakumar, who is also the resolution professional, from financial creditors, operational

creditors, employees, fixed deposit holders, and other creditors has touched approximately Rs

93,105 crore.

Against that, around Rs 85,800 crore of claims have been admitted, so far, said a banker.

Following an NCLT order dated December 3, Subramaniakumar, through a public notice, had

asked all the creditors including fixed depositors to submit their claims by December 17.

While financial creditors have demanded a payment of Rs 86,892.30 crore of their debt,

financial creditors claimed an amount of Rs 60.76 crore, as per the latest available data.

Last week, the committee of creditors met for the first time after the stressed financier was

admitted for insolvency proceedings on December 2.

Subramaniakumar informed the creditors about the status of the claims made so far during the

meeting.

Among the financial creditors, the country's largest lender, State Bank of India, including SBI

Singapore, submitted the highest claim of Rs 10,082.90 crore. However, claim which has been

admitted from SBI and SBI Singapore is Rs 7,131.31 crore and Rs 2,951.59 crore is under

verification. An overseas subsidiary of SBI- SBI (Mauritius) Ltd has also claimed payment of

Rs 97.58 crore from the mortgage lender.

Newspaper/Online ET Realty(online)

Date January 06, 2020

Link https://realty.economictimes.indiatimes.com/news/allied-industries/claims-worth-rs-4800-crore-admitted-from-fd-holders-of-dhfl/73114986

Other lenders include Bank of India (Rs 4,125.52 crore); Canara Bank (Rs 2,681.81 crore);

Union Bank of India (Rs 2,378.05 crore); Bank of Baroda (Rs 2,074.92 crore) and National

Housing Bank (Rs 2,433.79 crore), among others.

Bondholders through the debenture trustee ??Catalyst Trusteeship - have submitted claims

worth Rs 45,550.07 crore.

The housing finance company's employees and workmen have submitted a claim of Rs

2.01crore.

Apart from financial and operational creditors, the company also received claims of Rs 950.53

crore from HM Tower Private Limited, Man Realty, Merino Shelters, and Neelkamal Realtors

Tower.

DHFL, the third-largest pure-play mortgage player, is the first NBFC/HFC to face the corporate

insolvency resolution process.

The RBI, on November 20, superseded the board of DHFL and appointed Subramaniakumar as

its administrator after it found out governance and liquidity issues at the company.

The decision on DHFL came after the government on November 15 notified Section 227 of

Insolvency and Bankruptcy Code (IBC), empowering the RBI to refer stressed financial service

providers with an asset size of at least Rs 500 crore to insolvency courts.

The central bank has also appointed a three-member committee- consisting of IDFC First Bank

non-executive chairman, Rajiv Lall; ICICI Prudential Life Insurance managing director and

CEO N S Kanan and Association of Mutual Funds in India (AMFI) N S Venkatesh, to advise

the company's administrator in the resolution process.

_____________________________________________________________________________________________

Gurugram: Emaar Greens' buyers files complaint at CM window

over project delay

Around 100 people, who reside in the society that has 672 flats, pointed out that the

facility services in society is also in a poor state.

The residents of Emaar Green, a housing society in Sector 102, filed a complaint at the CM

window on Saturday against the developer for not paying them compensation for the delay in

possession.

The residents alleged that the builder had promised to offer the possession in June 2015, which

was actually given to them in 2017.

Though the builder had promised to compensate them for the delay, it hadn’t paid them a

penny. In the complaint, the residents demanded an enquiry by the economic offence wing.

Around 100 people, who reside in the society that has 672 flats, pointed out that the facility

services in society is also in a poor state. They claimed that there is no fencing on boundary

wall of the society, no waiting place for visitors and the entire society doesn’t have a single

CCTV camera installed.

Sandeep Fogat, a resident said, “After taking possession, we observed that the material used for

the construction was bad. Doors, tiles, electricity and sanitary hardware are of very poor quality.

At present, the security arrangements are insufficient in the society. We have staged protest

against the builder but no action has been initiated by the government so far.”

Another resident, Prakash Bora, said, “Emaar is refusing to pay the ‘delay in possession’

compensation to the buyers. Many buyers filed cases against builder in various courts. There are

many buyers who bought the flats in resale and they are also eligible for delay compensation

but builder is not entertaining their claims.”

The residents claimed that they made several complaints but no corrective actions have been

initiated yet. They said that as per HRera, builder is bound to share the CAM expenditure and

balance sheet on monthly basis with owners which is not done till now.

Despite repeated attempts by TOI, the Emaar management could not be contacted.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 06, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/gurugram-emaar-greens-buyers-files-complaint-at-cm-window-over-project-delay/73115072

NCDRC orders DLF Universal to pay compensation to over 100

buyers for project delay

Over 100 home buyers of DLF Capital Greens situated filed a case against DLF Universal

for delay in project delivery and recovering club and parking charges.

The National Consumer Dispute Rederessal Commission (NCDRC) has ordered DLF

Universal to pay DLF Capital Greens' home buyers compensation at 7% per annum from the

expected date for delivery of possession till the date on which the possession was actually

offered to them.

Over 100 home buyers of DLF Capital Greens situated at Shivaji Marg, Moti Nagar, New Delhi

filed a case against DLF Universal for delay in project delivery and recovering club and parking

charges.

The builder had constructed 2,870 apartments in 23 residential towers in three phases. Laresen

& Toubro was appointed as the principal contractor of the project.

The project was to be completed within a period of thirty six months from the date of the

application. The developer however claimed that there had been delay in getting the approvals

from the competent authorities as a result the time period for completion of the construction was

revised to 52 months. It intimated the allottees to either accept delay of sixteen months or to exit

from the project by taking refund with simple interest at 9% per annum.

The home buyers pleaded that the builder-buyer agreements were unilaterally prepared by the

developer and since the earnest money paid by them, along with other charges could be

forfeited in the event they refused to execute the agreement as drafted by the developer they had

no option except to sign on the dotted lines.

They have also disputed the amount collected by the developer alleging increase in super area

of the apartment. The complainants also sought refund of the charges recovered from the

allottees for providing car parking and club facility and service tax. They are also demanding

timely payment rebate and early payment rebate to all the apartment owners.

Some of the home buyers represented by advocate Aditya Parolia of PSP Legal pleaded that the

club as well as the parking areas, whether open or covered, form part of the common areas and

services hence the developer cannot charge separately for their use.

Newspaper/Online ET Realty(online)

Date January 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/ncdrc-orders-dlf-universal-to-pay-compensation-to-over-100-buyers-for-project-delay/73096698

The developer on the other hand said that the said areas are not included in common areas and

facilities and therefore, it was entitled to charge separately for the said facilities.

NCDRC held that "It is true that nothing in law prevented the developer form charging the cost

of the club area and basement parking from the allottees, who were to pay on the basis of the

super area which included not only the apartment area but also the common area of the building.

But, having not done that, the developer cannot be allowed to charge separately from the

allottees for the club area and the basements used for car parking."

The court also held that the allottees are entitled to early/timely rebate only if they have

complied with the terms on which such rebates were offered. However, the allottees shall also

be entitled to such rebate wherever the benefit of the rebate has been extended to them either by

the developer itself or by this commission.

The car parking and club charges wherever already paid to the developer shall be refunded to

the concerned allottee within three months, failing which the said charges shall carry interest at

9% per annum from the date of this order, till the date of refund.

The court also ordered the builder to execute the conveyance deed in favour of the allottees

within three months. The developer having received the sale consideration has nothing to lose

by holding possession of the allotted flat except that it would be required to maintain the

apartment. Therefore, the holding charges will not be payable to the developer, said the court.

DLF Universal had pleaded that in the builder-buyer agreements the super area mentioned was

tentative for the purpose of computing total price and that at the time of agreement the tentative

percentage of the apartment area to the super area of the apartment was about 78.5%. It was also

clarified that super area as well as percentage of the apartment area to the super area might

undergo changes during construction and final super area would be confirmed upon completion

of the construction.

The builder further pleaded that at the time of booking itself the allottees were informed that the

plans had not yet been sanctioned and the schedule for delivering possession of the apartments

was tentative.

The company submitted that early payment rebate has been given to all the allottees who made

early payment, whereas timelypayment rebate which was to be given as an adjustment, has been

given to all the allottees who were not in default at the time possession was offered.

If the developer knows that he can get away with paying such a paltry compensation,

there will be no pressure on him to complete the construction and delivery of possession to

the allottees since he knows that the said token compensation is only a fraction of the cost

of the borrowings if he has to borrow funds from the market, including banks and

financial institutions.NCDRC

They had applied for the approval of the building plan of Phase-I in May 2009 but the approval

was granted in March 2010. The approval for building plans for Phase-II could not be filed

earlier since it took seven months for revision of the lay out plan and the said approval came

only in August 2011 despite having been applied in August 2010.

As regards Phase-III, it is stated that the approval came in February 2013, though it was applied

in January 2011. The company said that in view of the aforesaid delays, the allottees of Phase-II

& Phase-III were given option of exiting from the project, by taking refund with 9% interest.

The developer pleaded that it has not sought additional payment for increase in the super area

beyond 15%. Therefore, no prior notice to the allottees was required before increasing the super

area and to the extent there has been actual increase in the super area as defined in builder-buyer

agreements.

The court however held that the builder is entitled to the additional demand on account of

increase in the

super area of the apartments.

As far as maintenance charges are concerned, the same should be paid by the allottee from the

date the possession is offered to him unless he was prevented from taking possession solely on

account of the builder insisting upon execution of the Indemnity-cum-Undertaking in the format

prescribed by it for the purpose.

Six deaths at the project

A perusal of the prohibition letter dated May 26, 2014 issued by the Directorate of Industrial

Safety & Health (Labour Department), Government of NCT of Delhi showed that there have

been as many as six fatal accidents at the side of this project.

NCDRC said that had all the requisite safety precautions been taken as many as six incidents at

the same site would not have happened in a span of 2 ½ years and consequently the work at this

site would not have been stopped.

Indemnity-cum-Undertaking

The developer, while offering possession of the allotted flats insisted upon execution of the

Indemnity-cum-Undertaking before it would give possession of the allotted flats to the

concerned allottee. Its clause 13 required the allottee to confirm and acknowledge that by

accepting the offer of possession, he would have no further demands/claims against the

company of any nature, whatsoever.

NCDRC however said the execution of such an undertaking would defeat the provisions of

Section 23 and 28 of the Indian Contract Act, 1872 and therefore would be against public

policy, besides being an unfair trade practice.

If the possession to an allottee has been delayed solely on account of his having not executed

the 'Indemnity-cum-Undertaking', the compensation to such an allottee should be paid with

effect from the expected date

for delivery of possession till the date on which the consumer complaint was actually instituted.

In two complaints, the developer has been ordered to pay Rs 50,000 as the cost of litigation in

each complaint, whereas in the other consumer complaints, the developer has to pay Rs 25,000

as the cost of litigation in each complaint.

________________________________________________________________________________________________

Gurugram: Property tax can be filed till January 31

Property tax can be filed online on the MCG website or at the MCG offices in Sector 34

and in front of the Civil Hospital, and the community centre in Sector 42.

The deadline to file property tax has been extended by a month to January 31.

“Those who have not filed property tax can deposit it and avail a 10% tax rebate. Properties of

defaulters will be sealed and, later, auctioned if they fail to deposit the property tax in

time,” MCG chief Vinay Pratap Singh said.

Property tax can be filed online on the MCG website or at the MCG offices in Sector 34 and in

front of the Civil Hospital, and the community centre in Sector 42.

The Haryana Municipal Corporation Act, 1994 mandates filing of property tax for vacant plots

and all types of complexes. In case it is not filed, an interest of 18% is levied every year. The

MCG has sent out 253 notices so far and recovered Rs 1.2 crore from defaulters.

“We are yet to recover Rs 90 crore,” an MCG official said, adding that most defaulters are

builders. If dues are not paid even when properties are sealed, defaulters are given 15 days’

time. After that, their properties are auctioned.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-property-tax-can-be-filed-till-january-31/73107137

SIT finds violation in land allotments in Visakhapatnam

The SIT chief Vijay Kumar on Friday told media that there were violations in land

allotments, issuances of no objection certificates.

The Special Investigation Team (SIT) probing the alleged tampering of government land

records is likely to submit an interim report on January 10.

The SIT chief Vijay Kumar on Friday told media that there were violations in land allotments,

issuances of no objection certificates. “Officers ranging from mandal revenue rank, collectorate

and higher level officials were involved in some cases. We will name the beneficiaries and the

officers in our report,” Vijay Kumar said.

YV Anuradha, member, SIT, said they would recommend criminal action against a few officers

for violation of rules. “We will examine whether the officers had followed the procedure or

not,’ she said.

The SIT had focused on three subjects – change of classification of land, most probably 22 A,

NOC lands given to ex-servicemen and political sufferers and government lands allotted to

private institutions and individuals.

Of the 266 petitions on land classification change, 257 were referred to tahsildars and 111

reports reached the SIT. Sixty-one petitions were rejected, 19 cases examined and

recommended to the collector to delete 22 A on those lands.

Bhaskara Rao, member, SIT, said they would recommend action against the officers found

involved in tampering of records.

“We have identified the officers who were involved in the illegal activity. If necessary, we will

go for field verification of land,” he said.

The SIT said it has informed petitioners about the status of their petition, including petitions

were rejected or accepted.

The SIT received 43 NOC petitions and examined 68 petitions given to the previous SIT—30

cases were examined and would be part of the interim report.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/sit-finds-violation-in-land-allotments-in-visakhapatnam/73093546

Vadodara civic body seals over 100 properties to recover tax

According to VMC sources, those holding possession of most of the sealed properties paid

up the pending dues by Friday evening.

The Vadodara Municipal Corporation (VMC) sealed 123 commercial properties across the city

on Saturday to recover long pending civic taxes.

According to VMC sources, those holding possession of most of the sealed properties paid up

the pending dues by Friday evening. They added that the tax for the remaining properties was

also expected soon.

Sources added that the process of recovery of taxes by way of disconnecting drainage and

sewerage lines in residential properties would begin from next week.

VMC is looking to begin the process only in the West and North zone where tax bills were

issued in time. The bills in the eastern and southern parts of the city were distributed late this

year due to floods as well as drinking water woes in these areas.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/vadodara-civic-body-seals-over-100-properties-to-recover-tax/73107310

Noida authority to take back plots from 18 government

departments

Unable to meet its revenue target for 2019-20 fiscal, the Authority had started issuing

notices to the departments from June.

The Noida Authority has decided to take back plots allotted to 18 government departments that

have not cleared dues within the stipulated time of December 31, 2019. On Friday, the

Authority served a recovery notice to HPCL gas agency Gaurav Enterprises in Sector 20.

Officials said the notices will be sent to 17 other government departments too.

Unable to meet its revenue target for 2019-20 fiscal, the Authority had started issuing notices to

the departments from June . The departments have defaulted on payments amounting to Rs

198.68 crore. The money was due for eight to 10 years, along with interest on rent arrears.

The defaulters were given a deadline of December 31 to settle the dues. The Authority had

decided to bring down the amount by introducing a one-time settlement scheme and the

recovery amount was decreased from Rs 198.68 crore to Rs 79 crore.

The defaulters were then asked to propose a time line for making payments, along with the first

instalment, by December 31. “They did not come forward within the deadline. Many are

demanding more rebates. It is not possible to suffer further losses. Hence, we have decided to

take back the land after issuing recovery certificates,” said Indu Prakash Singh, officer on

special duty and in-charge of the Authority’s general administration department.

The 18 defaulters include a post office, regional transport office and Bharat Sanchar Nigam

Limited, sales tax, income tax, commercial tax, labour court and Cement Corporation of India

offices. HPCL dealer Parth Gupta, who runs Gaurav Enterprises, said: “I am unable to

understand how the dues were calculated. I have met the officials at least 30 times to explain

where they have gone wrong but they refused to listen.” The agency has to pay a due of Rs 54

lakh, officials said.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-to-take-back-plots-from-18-government-departments/73093451

Aurangabad civic body makes CC a must for properties in its

jurisdiction

In most cases, individuals and builders initiate constructions with building permission

from the Aurangabad Municipal Corporation (AMC) but don’t bother to obtain the

completion certificate after the constructions.

Municipal commissioner Astik Kumar Pandey has issued directions to identify all those

properties falling under the jurisdiction of the civic administration which do not have

completion certificates and ensure they have the necessary documents by March end.

In most cases, individuals and builders initiate constructions with building permission from

the Aurangabad Municipal Corporation (AMC) but don’t bother to obtain the completion

certificate after the constructions. When the builders apply for securing completion certificates,

officials from the town planning department are required to check the documents and visit the

sites to ensure the constructions have been done as per the building permission.

Pandey said on Thursday that if builders and businessmen were constructing buildings in the

city, they have to abide by the rules of the civic body. “This is not ‘Jungle Raj’ so the

completion certificate will have to be secured,” he said. Pandey has set a deadline of March end

to ensure all Class I and Class II properties obtain the completion certificate.

In order to build a database of all the properties in the jurisdiction of the municipal corporation,

Pandey has sought the GST data from the GST office, data of commercial electricity consumers

from MSEDCL and building permission secured from the AMC in the last 30 years. Based on

this data, the AMC will carry out a drive to check if property owners have obtained the

completion certificates. If not, they have to obtain one from the civic body.

Pandey said that the properties in the gunthewari areas would be out of the purview of the

completion certificate drive. The regularisation of properties in the gunthewari areas would be

dealt separately.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/aurangabad-civic-body-makes-cc-a-must-for-properties-in-its-jurisdiction/73093489

Countdown to demolish Maradu flats begins

Evacuation of people from houses near the apartment complexes will start at 8.30am on

January 11. There will be pick up points for transporting residents to shelter points.

Senior citizens will get special attention.

People will not be allowed to gather within a 200m radius of the apartment complexes that will

be demolished in Maradu as the district administration will impose CrPC Section 144 during

demolition on January 11 and 12.

Prohibitory orders, which will be in effect from 9am, will be revoked once officials concerned

inform the district administration that the place is safe for people to return.

To ensure law and safety, around 500 policemen will be deployed at the boundary of each

exclusion zone that would be marked with red flags.

Evacuation of people from houses near the apartment complexes will start at 8.30am on January

11. There will be pick up points for transporting residents to shelter points. Senior citizens will

get special attention.

At 10.30am, the first siren will be given and it will last one minute. This is to warn people and

ensure that nobody is left inside exclusion zone. A police team will then search the exclusion

zone. At 10.55am another one-minute siren will alert motorists and all traffic movement on

major roads will be stopped. Then five minutes prior to the blasting another siren will be

sounded as a warning.

To ensure safety cover for police personnel posted at the boundary of the exclusion zone, siren

will be blown till the blasting process is over. A 30 second-long siren will be blown to indicate

the building has been cleared after the entry of demolition agency members.

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/countdown-to-demolish-maradu-flats-begins/73107359

Later, fire tenders and structural engineers will enter the spot to assess safety of nearby

structures. A report will be submitted to the control room by structural engineers about the

condition of the structures.

A mock drill will be conducted in the area on January 10 to clear suspicion and fear in the

minds of residents. Police will identify vantage points for public to watch the implosion. Traffic

diversion will be put in place during the implosion.

________________________________________________________________________________________________

Over 50,000 residents in Lucknow to now pay just Rs 6,000 for

civic amenities

These areas have now come under the jurisdiction of Lucknow Municipal Corporation,

which charges only Rs 6,000 per annum for the amenities.

From March onwards, more than 50,000 people living in residential areas developed

by Lucknow Development Authority on the outskirts of the city won’t have to pay the annual

user charge of Rs 12,500 for civic amenities.

These areas have now come under the jurisdiction of Lucknow Municipal Corporation, which

charges only Rs 6,000 per annum for the amenities.

The areas include Jankipuram, Gomtinagar Extension, Sarojininagar, Transportnagar,

Priyadarshni Colony and Mansarovar Colony, among others. LMC will provide services like

garbage collection, cleaning and interlocking of drains, water supply, repair of roads,

streetlights and sewage lines.

In Decmeber last year, LDA had announced to levy Rs 12,500 for civic facilities and

maintenance fee on people living in residential and commercial areas developed by the

authority. However, the areas came under LMC following the state government’s approval to

expand the city area under the civic body from 402.65km to 631sqkm. As a result, residents in

these areas will now have to pay just Rs 6,000 to LMC, apart from house and water tax.

LDA chief engineer Indu Shekhar Singh said, “It will take around three months to complete the

paper work for transferring the administration of the localities to LMC.”

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/over-50000-residents-in-lucknow-to-now-pay-just-rs-6000-for-civic-amenities/73107298

Ghaziabad: Modern highrises many but vacant plots turn

dumpyards

At present, neither the GDA nor the GMC has jurisdiction over the township and it is the

private builders who have been entrusted with the responsibility of garbage disposal.

In the absence of a proper municipal waste management system, garbage dumping on vacant

plots has become a common feature in Raj Nagar Extension.

Residents blame the local bodies — the Ghaziabad Development Authority (GDA) and the

Ghaziabad Municipal Corporation (GMC) — as well as real estate developers for the mess in

the area, where over one lakh people stay in over 35-odd highrises.

At present, neither the GDA nor the GMC has jurisdiction over the township and it is the

private builders who have been entrusted with the responsibility of garbage disposal. While

taking approvals for projects, developers promise to make arrangements for waste disposal. But

the promise is never kept.

Gajendra Arya, president, Federation of Apartment Owners’ Association, Raj Nagar Extension,

said: "Tonnes of garbage are dumped on vacant plots daily. Both GDA, which has collected a

huge sum of money from private developers for approving their projects, and the municipal

corporation, which collects property tax from the residents, have not made any arrangement for

waste disposal. The developers have also recovered crores of rupees from residents in the name

of external development charges. But nothing is being done from their side to address the

issue."

Apart from residential societies, garbage generated by markets, roadside vendors and scores of

labour colonies surrounding the highrises, also finds its way to the open areas. Sadly, the

garbage heaps are set on fire causing harm to the environment.

"As many as 20 such fires have been reported in the area in the past few months alone," Arya

said.

Last year, the GDA had come up with a plan to get garbage lifted from roads and open spaces

through a private contractor in Raj Nagar Extension, by collecting Rs 100 per flat per month as

user charges. However, the project was dumped after the federation, citing the support of

several residential welfare associations, objected to it.

Newspaper/Online ET Realty(online)

Date January 05, 2020

Link https://realty.economictimes.indiatimes.com/news/infrastructure/ghaziabad-modern-highrises-many-but-vacant-plots-turn-dumpyards/73107273

Last month, a delegation of the federation submitted a memorandum to the

GDA urging it to look into the matter.

Vikrant Hindon, a resident of Gaur Cascades Society, has expressed fear of planes meeting with

accidents due to a large number of birds in the area. "The Hindon Air Force base is hardly 3 km

from here. In 1997, three fighter planes had crashed due to bird hits."

GMC additional municipal commissioner Pramod Kumar said as the area has not been handed

over to the civic body. "So, it cannot collect garbage from the area."

GDA executive engineer Arvind Chaudhary said: "As of now, we are collecting garbage from

the road-

sides, although there is no scheme at present to collect waste from the societies. However, we

will hold discussions with the GMC to designate some place for garbage dumping."

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