19-august-2019 - credai...

19-August-2019

of 36

CREDAI Bengal Daily News Update | 19.08.19

WEST BENGAL NEWS

Only six out of 300 unsafe buildings evacuated so far in Kolkata

The drive to demolish portions of some of the buildings, listed as „highly dangerous‟ by the civic

body began a couple of months ago following mayor Firhad Hakim‟s intervention

The old and dilapidated buildings might collapse in heavy showers, fear Kolkata Municipal

Corporation buildings officials who face the challenging task of evacuating highly insecure houses to

avert any untoward incident.

The drive to demolish portions of some of the buildings, listed as „highly dangerous‟ by the civic body

began a couple of months ago following mayor Firhad Hakim‟s intervention. However,

the KMC demolition squad, which razes hazardous portions of insecure houses, could hardly achieve

success as most tenants refused to move out.

“We started a pre-monsoon drive to evacuate highly dangerous buildings after going through the list

of insecure houses and scanning their conditions. While we have managed to pull down dilapidated

portions of only half-a-dozen buildings in north and central Kolkata, our demolition squad had to

return without success for at least 20 houses as the residents refused to move out despite our warnings.

We are worried about their safety, especially given that these structures become even more vulnerable

during downpours,” a senior KMC buildings department official said.

In fact, the resistance has compelled the civic authorities to amend the KMC building rules and

impose a fine of up to Rs 1 lakh on owners or occupiers of rickety buildings unwilling to repair or let

the civic body demolish the hazardous portions.

Newspaper/Online ET Realty (online)

Date August 17, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/only-six-out-of-300-unsafe-buildings-evacuated-so-far-in-kolkata/70711359

of 36

Some of the areas, where the civic demolition squad had to retreat, are Cossipore, Dum Dum,

Paikpara, M G Road, APC Roy Road, Taltala and S N Banerjee Road. Later, the KMC buildings

department started a special drive in some areas following Hakim‟s instruction after he received

numerous distress calls during “Talk to Mayor” programme over the past month.

“The callers—most of them panic-stricken residents and owners of hazardous buildings—sought help

from the mayor to raze extremely hazardous portions of buildings in north and central Kolkata. After

that, we pulled down hazardous portions of some dangerous buildings in Sovabazar and on Bentinck

Street,” said a civic official.

However, a senior buildings official lamented that despite best of efforts he ad failed to convince

many of the residents of other equally insecure structures.

“I have tried my best to convince residents of highly insecure buildings on Elliot Road, Ripon Street,

S N Banerjee Road and Lenin Sarani to vacate their houses. Those structures might cave in any day,

especially during heavy spells of rains,” he said.

________________________________________________________________

of 36

OTHER NEWS

EOW registers FIR against RNA Corp for duping buyers of Rs 6 crore

When contacted, RNA Corp's spokesperson said the group is not aware of any such FIR against

the promoters.

Mumbai Police's Economic Offences Wing (EOW) has registered an FIR against the promoters

of RNA Corp for allegedly duping 13 homebuyers to the tune of Rs 6.17 crore. The group had

promised them flats in its 64-storeyed residential project in Sewree.

When contacted, RNA Corp's spokesperson said the group is not aware of any such FIR against the

promoters. "We are not aware of any FIR but we are committed to fulfilling our obligations to our

customers," he said.

According to the FIR, the complainant, Jahangir Presswala,63, a retired technical director and a

Girgaon resident, had come to know about the Sewri Metropolis project by RNA in 2011 and his wife

and father-in-law had visited the site, where they were shown a sample flat and given brochures. Since

they liked the flat, they decided to buy a 3 BHK property, which would cost Rs 2.46 crore.

The group's executives asked the Presswala family to pay 25 per cent of the total amount of the flat as

token. The remaining amount was supposed to be paid in instalments during construction. The

Presswalas were also told that the project would be completed in 2015.

Presswala's wife and father-in-law paid the booking amount of Rs 63 lakh in 2011 in three cheques.

However, the builder allegedly did not do the registration of the flat and was apparently avoiding the

family. The complainant has also alleged that only plinth-level construction has taken place.

Presswala, along with 12 other homebuyers, then decided to seek police's help.

"We have registered a case against the promoters Anubhav and Gokul Agarwal after the complainant

approached us. It has been alleged that even after eight years the builders could not complete the

construction. They neither gave possession of the flat nor returned the money," said a police officer.

According to information on Maharashtra Real Estate Regulatory Authority website, RNA Metropolis

is a 63-storey project with 172 proposed 3BHK and 324 2BHK flats. The original proposed date of

possession was December 31, 2020, which has been revised by the developer to December 31, 2022.

The website shows that about 24 complaints against the project are pending with the National



Link https://realty.economictimes.indiatimes.com/news/regulatory/eow-registers-fir-against-rna-corp-for-duping-buyers-of-rs-6-crore/70730676

of 36

Consumer Dispute Redressal Commission in Delhi, and four complaints are at various stages of

hearing before MahaRERA.

____________________________________________________________________

of 36

Parsvnath receives Rs 1,200 crore from RLDA

In 2010, Parsvnath through an auction had bought about 37 acre land located at Sarai Rohilla-

Kishanganj area in the national capital.

Realty firm Parsvnath Ltdhas received Rs 1,200 crore from Rail Land Development

Authority (RLDA) as per a court order in a dispute related to a project here and said that the amount

will be utilised to reduce debt.

Last month, the Supreme Court had dismissed the appeal of the RLDA challenging a Delhi High

Court order directing it to pay Rs 1,034 crore to Parsvnath in a dispute over a project in the national

capital.

"We have received Rs 1,200 crore from RLDA and the money is being utilised to clear debt of IL&FS

and redemption of NCDs (non-convertible debentures) and OCDs (Optionally Convertible

Debentures)," Parsvnath Chairman Pradeep Jain told .

In 2010, Parsvnath through an auction had bought about 37 acre land located at Sarai Rohilla-

Kishanganj area in the national capital from the RLDA for about Rs 1,650 crore.

Parsvnath had in 2011, formed a joint venture with Red Fort Capital to execute this project. The JV

firm was named Parsvnath Rail Land Project Pvt Ltd (PRLPPL).

Later in May 2013, a development agreement was executed between the RLDA and the PRLPPL.

Parsvnath had paid over Rs 1,150 crore against the purchase of this land parcel, on which it proposed

to develop luxury housing, commercial areas, railway housing, railway service building,

hospital/school and other amenities in this project.

However, Parsvnath had in February 2016, terminated its development agreement with the RLDA due

to a title dispute.

Then, PRLPPL went into arbitration process to settle the issue.

As per the arbitral award, the claim of Rs 1,034.53 crore made by the company and PRLPPL was

upheld. Payment of this amount was directed to be made by the RLDA along with 4 per cent interest

per annum from July 15, 2015 till the date of payment.

Later, a division bench of the Delhi High Court dismissed the RLDA plea, which had challenged a



Link https://realty.economictimes.indiatimes.com/news/industry/parsvnath-receives-rs-1200-crore-from-rlda/70730647

of 36

single judge bench order that upheld the arbitral award of Rs 1,034 crore in favour of the real estate

major.

The RLDA then moved the apex court which also dismissed the appeal on July 8, this year.

"We see no reason to interfere with the impugned order of the High Court. The Special Leave Petition

is, accordingly, dismissed," a bench of Justices L Nageswara Rao and Hemant Gupta had said last

month.

___________________________________________________________________

of 36

Home buyers' body wants PSU to complete stuck projects

Stating that around 5 lakh home buyers are stuck, the association suggested that all projects

that are delayed by more than one year should be identified within one month.

A home buyers association has written a letter to the Prime Minister demanding creation of a task

force to identify stuck housing projects and nominate a PSU to complete these homes through creation

of a stress fund.

The Forum for People's Collective Efforts (FPCE) said it has written to Prime Minister Narendra

Modi in view of recent order by the Supreme Court in Amrapali case that the Centre and state

governments should take steps to help all distressed home buyers.

"Now, as head of the government and also being most popular leader who has come back with huge

majority, it is incumbent upon you to rise up to the expectations of not only the apex court but also to

the millions of stuck homebuyers by taking effective steps to resolve the present issue," FPCE

President Abhay Upadhyay said in the letter to Modi.

Stating that around 5 lakh home buyers are stuck, the association suggested that all projects that are

delayed by more than one year should be identified within one month.

A task force under the Ministry of Housing and Urban Affairs should be formed with representations

from home buyers, state governments, financial institutions and industryexperts (other than builders)

to ensure deliveries of delayed projects, starting with those nearing completion.

A Public-Sector Enterprise should be assigned the job to complete such identified projects in

supervision of the said task force. "The task force should estimate the seed capital needed for

completion of all such delayed projects for which a separate "stress fund" may be created and its

utilization should be strictly monitored by the said task force," Upadhyay said.

Promoters of projects to be completed from this 'stress fund' should be stripped of all their assets,

including his personal, to recover the money, the association said.

Alleging diversion of funds meant for projects, Upadhyay said forensic audit should be ordered for all

such projects which are delayed by more than three years.

"This is a large scale organized cheating committed by promoters of real estate projects with all other



Link https://realty.economictimes.indiatimes.com/news/industry/home-buyers-body-wants-psu-to-complete-stuck-projects/70730613

of 36

constituents being partner in their crime," FPCE alleged and sought massive cleaning up exercise to

eliminate bad elements.

A clear message need to be sent to real estate industry that the government will have zero tolerance

policy towards any kind of malpractice or even delay in execution, it said.

"Needless to say, this is very serious matter and cleaning of mess of such proportion involving high

and mighty builders cannot be undertaken unless you are directly involved and the entire exercise is

carried under your direct supervision," FPCE said in the letter to the PM.

The real estate sector could contribute to its potential in GDP growth and generating jobs, if these

measures are taken to eliminate fly-by-night builders, said Upadhyay who is also member of the

Central Advisory Council, RERA, under the housing ministry.

The realty law RERA has failed in protecting home buyers' right because of poor implementation of

the central law by the state governments, it said.

____________________________________________________________________

of 36

Rajasthan builders to pay more to register projects with RERA

The new fees will come into effect from September 1. Apart from plotted schemes, developers of

housing schemes will have to pay Rs 20 per square metre as standard fee.

Developers in the state will have to shell out more money to register their projects with Real Estate

Regulatory Authority (RERA). The regulatory authority has imposed standard fee along with

registration charges.

The new fees will come into effect from September 1. Apart from plotted schemes, developers

of housing schemes will have to pay Rs 20 per square metre as standard fee.

Those who have delayed registration of ongoing projects with RERA will now have to deposit penalty

(four times of registration fee) along with registration fee till December 31, 2019. Also, authority will

impose two times of registration charges as standard fee on developers who register their ongoing

project after September 1, 2019.

Developers, who want extension in registration, will have to pay 50% of registration fee as extension

charges. After September 1, 2019, the realtors will also have to pay additional standard fee for

extension, which will be 50% of registration charges.

An official informed, as per the mandatory provision, the developers have to register themselves on

RERA website.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/rajasthan-builders-to-pay-more-to-register-projects-with-rera/70721411

of 36

Over 200 rainwater harvesting units installed in Bhubaneswar since

2015

The BDA refuses to issue occupancy certificate in case an apartment developer or an individual

house-owner does not conform to the norm.

More than 200 structures with rainwater harvesting systems in place have come up here after

the Bhubaneswar Development Authority (BDA) had in 2015 made it mandatory for buildings built

on a minimum of 300 square metre area to have such facilities.

The BDA refuses to issue occupancy certificate in case an apartment developer or an individual

house-owner does not conform to the norm.

The 200 rainwater harvesting structures, mostly in apartments, include those that have come up in

areas under the BDA and the Bhubaneswar Municipal Corporation (BMC). While the BDA has

jurisdiction over 1,000 square kilometre area, the BMC has control over 165 square kilometre area.

The BMC has so far given occupancy certificate to seven apartments with rainwater harvesting

structures.

“Since the time BMC set up its own planning cell, which approves building plans, more than 3,000

plans have been given approval. Of them, only seven were of 300 square metre built-up area.

Occupancy will not be allowed in buildings that don‟t have rain harvesting structures,” Bandita

Mohapatra, BMC‟s planning officer, said

Rain harvesting structures are those that help store rainwater for re-use in the same building or for

other purposes. In 2015, the government decided to introduce rooftop rainwater harvesting system in

the urban areas of the state.

The decision was taken to ease pressure off the fast-depleting groundwater. “Nearly 40 per cent of the

urban water supply is sourced from groundwater,” sources said.

Urban planner Piyush Rout said checks should be carried out to ensure that the rainwater harvesting

structures were operational. “Many building developers build the structures to get certificate but there

should be a way of checking if they work or not,” he said.



Link https://realty.economictimes.indiatimes.com/news/residential/over-200-rainwater-harvesting-units-installed-in-bhubaneswar-since-2015/70721433

of 36

Over 50,000 flats on outskirts of Lucknow to face power crisis

The Lucknow Development Authority (LDA) is raising new flats along Kanpur Road, Hardoi

Road, Sitapur Road and Faizabad Road and in Gomtinagar extension.

More than 50,000 flats being constructed on the outskirts of the city and over 6 lakh existing

households in Aashiana, Jankipuram, Gomtinagar, Chinhat and Alambagh are staring at acute power

crisis, thanks to shoddy planning.

The Lucknow Development Authority(LDA) is raising new flats along Kanpur Road, Hardoi Road,

Sitapur Road and Faizabad Road and in Gomtinagar extension. The projects are expected to be

complete in a year after which the monthly power consumption will be 2.5 lakh kilowatt.

However, no provision has been made to set up substations to facilitate uninterrupted electricity

supply to these areas.

“We need at least 12 power substations to meet the demand in these new areas. But, land has not been

allotted to Lucknow Electricity Supply Administration (LESA) for setting up substations. Under the

circumstances, power will be supplied from the six nearest substations that cater to over six lakh

households in Aashiana, Jankipuram, Gomtinagar, Chinhat and Alambagh,” said Sanjay Goel, the

managing director of Madhyanchal Vidyut Vitran Nigam (MVVNL).

Drawing power from the existing substations will result in overloading. This, in turn, will trigger

breakdowns, tripping and other faults, leading to frequent outage and low voltage in the newly

developed areas and in their adjoining localities.

“So, we have decided not to give electricity connection to new flats till the LDA gives MVVNL

around 36,000 square feet land for the 12 new substations,” Goel added.

Earlier, the power utility had raised a similar demand for supply in newly developed areas of

Gomtinagar, Gomtinagar extension, Jankipuram and Jankipuram extension.

LDA officials maintained that they were scouting for vacant plots. “We are looking for land on city

fringes and have also recognised some areas. We will hand over the land to the power firm so that

substations can be set up. There will be no problem for newly built housing units or flats,” promised

LDA chief engineer Indu Shekhar Singh.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/over-50000-flats-on-outskirts-of-lucknow-to-face-power-crisis/70721533

of 36

Haryana CM rules out hike in FAR in plotted sectors

The developers and the property owners have been demanding a revision in FAR after the

Haryana government recently allowed the construction of fourth floor and its registration as an

independent dwelling unit.

The state government has ruled out any increase in floor area ratio (FAR) in plotted sectors, despite a

growing clamour among developers and property owners in the city for the same.

The developers and the property owners have been demanding a revision in FAR after

the Haryanagovernment recently allowed the construction of fourth floor and its registration as an

independent dwelling unit.

If FAR is increased, plot owners will be able to construct and occupy more area on their land.

As per existing norms, where FAR is 1.98, the plot owner can construct on around 66% of the area. If

FAR is revised to 3, this can increase to around 80%. On Thursday, a delegation of developers and

plot owners met Haryana chief minister Manohar Lal Khattar in Gurgaon and demanded an increase

in FAR in plotted areas.

They pleaded that if FAR is increased, they will be able to carry out construction in more area in

smaller plots as under the present FAR norms, lot of space is left vacant. FAR will balance the

demand supply gap and also check violations as people carry out illegal constructions in order to

increase areas due to restrictions, the delegation told the CM.

However, Khattar made it clear that “there are no immediate plans for revision of FAR”, TOI has

learnt.

In the past three months, massive drives were conducted by the the department of town and country

planning (DTCP) against illegal encroachments and unauthorised construction in the residential areas

of the city.

The developers and the property owners have also been meeting top party functionaries to press for

their demands. Sources, however, said the CM will constitute a committee of officials from DTCP to

conduct a study on the situation and make suggestions on whether FAR can be increased.

Members of Home Developers Association said they “are unhappy with the the chief minister‟s

reply”.



Link https://realty.economictimes.indiatimes.com/news/industry/haryana-cm-rules-out-hike-in-far-in-plotted-sectors/70709594

of 36

“The real estate sector is struggling and in such scenario the registration of the fourth floor as an

independent during unit was the only hope for the business. But if the FAR is not increased, the

property owners will not be able to carry out the construction work in more area and might find it hard

to sale the floors,” said a member.

When contacted, the director of town and country planning, KM Pandurang, said the department has

received several complaints against property owners who had carried out illegal constructions, adding,

“we will not tolerate any violations”.

____________________________________________________________________

of 36

NCDRC issues notice to Nagpur's Goldbricks Infrastructure

The bench comprising presiding member Deepa Sharma and member C Viswanath, on hearing

the complaint, issued notice to the respondents under Section 13(2) of the Consumer Protection

Act, 1986

The National Consumer Disputes Redressal Commission(NCDRC) issued notices to Goldbricks

Infrastructure after a city businessman lodged a complaint.

The bench comprising presiding member Deepa Sharma and member C Viswanath, on hearing the

complaint, issued notice to the respondents under Section 13(2) of the Consumer Protection Act,

1986. Before adjourning the hearing till July 8 next year, the judges directed them to file their reply

within a month of getting the notices.

Complainant Kishor Daga, through counsels Anubhav Mardikar and Shubhada Phaltankar — knocked

the forum‟s doors after the Goldbricks Infrastructure has not only failed to provide possession of flat,

but also amenities and facilities to the flat owners as promised at its Anandam World City project,

coming up near the Medical Square in the city.

Citing project brochure, Agrawal claimed the company promised to provide 27 different kinds of

amenities titled „Live, Work and Play‟. It including swimming pool, cricket pitch, and clubhouse

among others. Despite paying almost the entire consideration, none of the facilities has been

implemented as promised.

Agrawal claimed that he had paid more than 90% of the amount to the company, but the respondent

has defaulted in executing a deed of conveyance with most of the buyers. He had issued a legal notice

to the Goldbricks Infrastructure in June last year asking for early possession of flat and also agreed to

pay Rs 8.92 lakh to the builder, which was outstanding towards the flat‟s purchase.

He contended before the NCDRC that without providing any of the promised facilities, the company

is illegally demanding money under various pretences and hence he was forced to knock judiciary‟s

doors for justice.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/ncdrc-issues-notice-to-nagpurs-goldbricks-infrastructure/70710492

of 36

ED attaches Telangana's Heera Group assets worth Rs 300 crore

The agency has issued a provisional order under the Prevention of Money Laundering Act

(PMLA) for attachment of the assets valued at Rs 299.99 crore, it said.

The Enforcement Directorate on Friday said it has attached assets worth about Rs 300 crore in

connection with its money laundering probe in an alleged ponzi scam involving the Heera Group

of Telangana.

The properties belong to Nowhera Shaik of Heera Group of Companiesand others, and are spread

across multiple states.

The agency has issued a provisional order under the Prevention of Money Laundering Act (PMLA)

for attachment of the assets valued at Rs 299.99 crore, it said.

"The attached assets comprise 96 immovable properties located in Telangana, Kerala, Maharashtra,

Delhi and Andhra Pradesh worth Rs 277.29 crore in the form of agricultural lands, commercial plots,

residential buildings, commercial complexes and balances in bank accounts worth Rs 22.69 crore," the

Enforcement Directorate said in a statement.

The case pertains to the fraudulent money circulation scheme perpetrated by the Heera Group in

Hyderabad and the ED had filed a criminal case of money laundering in the instance based on a

Telangana Police FIR and a few other complaints.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/ed-attaches-telanganas-heera-group-assets-worth-rs-300-crore/70711299

of 36

SCDRC directs Mumbai's Vijaykamal Properties to refund buyer's

money

The duo had booked a flat in a building located in Kandivali (W) Mumbai in 2014. They had

made an initial payment of Rs 15,51,168 to Vijaykamal Properties for the flat costing Rs

77,55,840.

A consumer forum here has ordered a construction firm to refund over Rs 15 lakh to a buyer for

failing to hand over a flat in suburban Kandivali on time. In its ruling passed recently in favour of the

complainants- Amit Monterio and Francis Monterio, the State Consumer Disputes Redressal Forum

told the construction firm, Vijaykamal Properties, that the flat buyers cannot be held responsible for

pending litigations.

The duo had booked a flat in a building located in Kandivali (W) Mumbai in 2014. They had made an

initial payment of Rs 15,51,168 to Vijaykamal Properties for the flat costing Rs 77,55,840.

As per the agreement, the duo was supposed to get the possession by June 2017.

However, the builder failed to hand over the property and did not even complete the construction, the

complainants said.

They said that the construction firm did not respond to the legal notice sent by them. Following which

they approached the consumer forum, seeking refund of the amount paid.

In the reply before the forum, the builder argued that he could not hand over possession of the flat due

to multiple litigations pending against the property.

He further submitted that Origin Realtors LLP was also introduced as a co-promoter in the project,

which was then revised and registered with the Maharashtra Real Estate Regulatory Authority

(MahaRERA) and as per the new plan, the project was expected to be completed by December 31,

2023.

The forum, however, said, "Due to multiple litigations the opponent could not give possession of the

flat to the complainants. However, for these litigations complainants cannot be held responsible."

The forum also said that after the project was revised, no fresh agreement were executed with the

complainants. Therefore, the buyers should have got possession of the flat by June 2017 as per the

deed executed earlier.



Link https://realty.economictimes.indiatimes.com/news/regulatory/scdrc-directs-mumbais-vijaykamal-properties-to-refund-buyers-money/70712574

of 36

Since the realtors failed to hand over the flat within that time, the duo should get the refund of the

amount they had paid, it added.

It directed the builder to refund the entire amount paid by the buyer alongwith interest of 9 per cent

per annum and also ordered him to pay Rs 10,000 towards the cost of litigation.

___________________________________________________________________

of 36

No NOC needed to register individual‟s share of undivided plot:

Bombay HC

The order is likely to bring relief to landowners with undivided right in property whose sale

transactions have been delayed due to red tape.

The high court of Bombay at Goa has held that the registration of a sale deed of an individual‟s

undivided share in a plot as per survey plan does not require a no-objection certificate (NOC) under

the Town and Country Planning (TCP) Act, 1974.

The order is likely to bring relief to landowners with undivided right in property whose sale

transactions have been delayed due to red tape.

In the case at hand, Gajendra Desai approached the court stating that the civil registrar and sub-

registrar, Pernem, refused to consider the case of registration of the sale deed of his property because

he didn‟t have an NOC under Section 49(6) of the TCP Act.

However, the bench comprising Justice MS Sonak and Justice Nutan D Sardessai observed that the

registrar couldn‟t have refused to register the sale deed for want of the NOC.

“Upon analysis of the provisions in Section 49(6) of the said Act, we too are satisfied that the

provision does not apply to the registration of a sale deed in respect of undivided rights in a plot which

is as per the survey plan, issued by the survey department, of the plots which have development

permissions for such sub-division from the authorities (the planning and development authority within

a planning area, or from the TCP department within an area other than a planning area),” the court

noted.

Desai‟s lawyer, Jagannath Mulgaonkar, argued that the NOC wasn‟t required as per the clarification

issued by the state registrar in February 2019. Advocate general Devidas Pangam argued that if such

sale deeds were registered without an NOC, the object of amending Section 49(6) might be frustrated.

He added that purchasers would seek to bypass provisions relating to sub-division of plots, and that

sub-division was necessary before any permissions are issued for construction.

The court held that since sub-division is indeed necessary before permissions are granted for

construction or development of such plots, then such requirement will continue to operate

notwithstanding the registration of such a sale deed without NOC under Section 49(6) of the law.

The court further held that even the clarification issued by the chief town planner stated that transfer

of an undivided share in a plot as per the survey plan does not amount to its sub-division. Therefore,



Link https://realty.economictimes.indiatimes.com/news/regulatory/no-noc-needed-to-register-individuals-share-of-undivided-plot-bombay-hc/70710411

of 36

the court held, even if the sale deed of an undivided share in respect of a plot as per the survey plan is

to be registered, that by itself will not amount to sub division of the plot.

______________________________________________________________

of 36

Delhi government gears up for regularising colonies

The revenue department is likely to open 40 new sub-registrar offices across the city, which will

exclusively deal with sale deeds of properties in the 1,797 unauthorised colonies.

Even though the Centre is yet to give its nod to Delhi government to regularise the 1,800-odd

unauthorised colonies in the capital, it has already started the process of strengthening its workforce at

revenue offices where the properties will be registered.

Sources said the revenue department has started hiring officials and support staff for the existing and

new offices of sub-registrars to tackle the huge rush of people who would queue up to get the

ownership rights of their houses by paying stamp duty.

The revenue department is likely to open 40 new sub-registrar offices across the city, which will

exclusively deal with sale deeds of properties in the 1,797 unauthorised colonies. Each office will

require an additional staff of 7-8 assistants and computer operators to verify the documents and

register the properties.

However, revenue minister Kailash Gahlot told TOI that no specific details of the new offices and

staff has been worked out as yet. “But the department has been sensitised to strengthen the workforce

to tackle the huge rush of property owners once the registrations start,” he added.

According to an estimate, there are about 18 lakh properties that would need to be registered once the

Centre give its nod. The properties initially changed hands on the basis of general power of attorney.

After the government banned registering of GPAs, sources said people sealed their deals on stamp

papers attested by notaries.

“One sub-registrar office can register 150-180 properties in a day. Considering that there are about 18

lakh electricity connections in such colonies, we will need at least 40 sub-registrar offices to complete

the task in a time-bound manner,” said a revenue department official.

Delhi currently has 21 sub-registrar offices in its 11 districts. Most of these offices are overburdened

with work with waiting time extending up to 10 days. Though registration is done online, the process

takes time.

While the housing and urban affairs ministry has already prepared a cabinet note to grant ownership

rights to people residing in the unauthorised colonies, Delhi Development Authority will soon

undertake the process to determine their boundaries using GIS images. This work will be executed

by Survey of India, an official said.



Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-government-gears-up-for-regularising-colonies/70710329

of 36

Panchkula civic body to revise property tax

Sources said the residents of Panchkula complained to the higher authorities that often the

amount fixed after the survey conducted by the municipal corporation (MC) was not accurate.

Soon, the residents of Panchkula district will get a revised amount for paying property tax, as the

urban local bodies has been directed by the Haryana government to conduct a fresh survey.

Sources said the residents of Panchkula complained to the higher authorities that often the amount

fixed after the survey conducted by the municipal corporation (MC) was not accurate. As a result, the

residents were often asked to pay more property tax.

The MC had surveyed nearly 70,000 houses in the three cities that include Pinjore and Kalka, as well

as Panchkula.

Recently, Haryana government has hired an agency that is conducting the survey again after which

property tax fee will be generated for individual, government and commercial properties. Sources said

the data that the MC was acting is almost 10 years old.

Jarnail Singh, executive officer of the municipal corporation, said his office often receives complaints

that tax is far more than it should be, following which the MC had to send a team to verify. But now

the new survey will set this issue right and authorities can take stringent action against the violators,

he added.

Meanwhile, the Panchkula municipal corporation (MC) is tightening its grip on the defaulters.

On Wednesday, the municipal corporation commissioner issued notices under section 130 of

the Haryana Municipal Corporation Act, 1994, stating that "You are informed that in case you fail to

pay property tax by February 21 the property mentioned in paragraph (1) of this order will be attached

and sold through public auction."

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/panchkula-civic-body-to-revise-property-tax/70710209

of 36

BMC to file police cases against 28 property tax defaulters

BMC officials propose to file police cases against 28 property tax defaulters whose cheques,

issued in the last financial year, had bounced.

BMC officials propose to file police cases against 28 property taxdefaulters whose cheques, issued in

the last financial year, had bounced. Municipal officials said that they were going after defaulters who

were repeat offenders.

Property tax defaulters had issued 118 cheques, collectively made out for an amount of Rs 36.6 crore;

all were dishonoured because of insufficient funds in the bank accounts. Most defaulters were builders

and owners of commercial premises and malls, said sources.

Dishonour of a cheque is a criminal offence and punishable by both imprisonment and fine.

The proposal to file police cases was recently sent to civic chief Praveen Pardeshi for a final decision.

He wants to make repeat offenders an example to warn others.

Tax defaulters used bribes, influence to stall BMC action

Sources said that despite not having sufficient balance, the defaulters chose to issue cheques to pre-

empt BMC action like disconnection of water supply or attachment of properties for non-payment.

The municipal commissioner is said to be disinclined to recommending police cases against all the

cheque-bouncing offenders; he wants to give those who are not habitual offenders a chance to clear

the pending dues."We will take exemplary action to keep them from repeatedly defaulting on property

tax payment," Pardeshi said.

Municipal officials said that many of the defaulters adopted corrupt practices and used their influence

to get away without action after defaulting on tax payment.

An official said there is a provision to impose 2% of the total pending dues as penalty in every

defaulting month, but it had not been used for years.

Five months ago, the BMC disconnected water connection to 120 commercial establishments that had

defaulted on property tax and attached some of their properties, but these defaulters still did not clear

their pending dues before March 31.

Some others, to avoid such action, issued cheques to the BMC at the last moment against the pending

property taxes.



Link https://realty.economictimes.indiatimes.com/news/regulatory/bmc-to-file-police-cases-against-28-property-tax-defaulters/70710262

of 36

When the BMC deposited these 118 cheques in the bank, all bounced. BMC then alerted the

respective offenders for not maintaining sufficient bank balance and waited for them to clear the dues

through other modes of payment, but the warning went unheeded.

After everything else failed, the property tax collection department got down to preparing a detailed

note against the defaulters and suggested filing of police cases against them for cheque-bouncing.

In 2017-18 the BMC property tax collection was Rs 5,131 crore, while in the last financial year it was

Rs 5,061 crore.

Earlier, the BMC had decided that property tax defaulters who did not pay up despite several reminder

notices and even disconnection of water supply would be blocked from selling or transferring their

property or from taking a loan against the property.

____________________________________________________________________

of 36

Pune civic body's law panel objects to property tax relief recovery

The law committee of the Pune Municipal Corporation (PMC) on Friday told the civic

administration to drop the plan of retrospective recovery of the tax relief amount.

The civic body may not recover the 40% discount given to the self-occupied property owners for

nearly five decades despite revoking the relief following a directive from the state government.

The law committee of the Pune Municipal Corporation (PMC) on Friday told the civic administration

to drop the plan of retrospective recovery of the tax relief amount.

“The recovery of the tax will not be practical. The civic administration is claiming that the recovery

amount will be calculated keeping 2010-11 as the base year. But even then, getting back the money

from property owners will be complicated,” Yogesh Samel, the head of the PMC‟s law committee,

told TOI.

The PMC was offering 40% discount in property tax since 1970s under a scheme introduced after the

Panshet floods. The scheme was scrapped following the state government‟s directive. The state also

gave directive to the PMC to recover the discount given to property owners with retrospective effect.

The order from the state government did not need any ratification from the corporators. The proposal

to withdraw the discount was tabled before the standing committee of the PMC for “information” last

month.

“The new policy should not be implemented for old properties. The retrospective application of this

directive is wrong,” said Ajit Darekar, a member of the PMC‟s law committee.

According to the members of the committee, a week‟s time has been given to the civic administration

for further study of the matter. The civic administration‟s report on the demand of the committee

would be tabled in the next meeting.

A senior civic official earlier said, “We are not sure how to execute the order with retrospective effect.

The tax structure has changed several times in five decades. It has been calculated with several other

rebates. Calculation of the tax amount for old residential properties that availed the concession will be

near impossible.”

Another official said, “The civic body has started recovering the tax with 100% charges from the new

financial year. The civic administration will follow the directive given by the state. If any changes

have to be made, the committees concerned will take the call,” said a senior PMC official.



Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-bodys-law-panel-objects-to-property-tax-relief-recovery/70709668

of 36

According to the PMC‟s data, the city has 11 lakh assessed properties, including those in the 11

merged villages. Almost 70% of them are self-occupied. Nearly 3.3 lakh premises have been rented.

Owners of these houses did not get the benefit of the discount.

____________________________________________________________________

of 36

Bhubaneswar civic body to stop home owners from running commercial

operations

The move comes after none of them turned up at the BMC office to apply for a license allowing

commercial operations or to file self-declaration forms stating they have stopped such

operations.

The Bhubaneswar Municipal Corporation (BMC) has decided to make regular field visits to check

whether house owners, who are using residential buildings for commercial purposes, have stopped

such unauthorized operations or not.

The move comes after none of them turned up at the BMC office to apply for a license allowing

commercial operations or to file self-declaration forms stating they have stopped such operations.

The BMC had given such house owners a week‟s time to stop operations or apply for commercial

licence. The BMC has submitted the list of offenders to city DCP Anup Sahu.

On July 31, the BMC had issued notice to 40 house owners for violating norms. Several commercial

outlets such as hotels, corporate offices and educational institutions are being run in residential houses

by hoodwinking the BMC resulting in substantial loss of revenue to the state exchequer.

Deputy commissioner (north zone) Pramod Prusty said BMC personnel will go from door-to-door to

find out whether the owners are still running the commercial outlets. “We have given the list of

violators to police. We will move police again if we find that the commercial operations are still being

carried on from residential spaces,” he added.

If the violations persist, BMC will continue to lose revenue as it is now collecting the holding tax

according to the slabs charged on residential buildings.

There are different slabs of holding tax assessment for commercial buildings. The holding tax

assessment for commercial complexes is far more than the residential ones. Secondly, the commercial

establishments need to procure trade license for running businesses.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/bhubaneswar-civic-body-to-stop-home-owners-from-running-commercial-operations/70709476

of 36

NHB directive on subvention to have little impact: Study

Real estate developer Sobha believes that demand in the residential sector will continue to grow

as benefits from the structural reforms begin to show results.

The recent directive of the National Housing Board (NHB) to housing finance companies (HFCs), to

refrain from giving loans for underconstruction projects which are under any subvention scheme in

view of various complaints of fraud, may not have a significant impact because the share of such

projects is quite small.

According to a recent study by ANAROCK Research, only 8% of the total 280 projects launched in

the April-June quarter offered subvention schemes. Of the nearly 69,000 units launched during the

period, only 7,600 units (11% of total units) offered subvention schemes, with a majority of such units

in Mumbai Metropolitan Region (MMR).

“More than smaller developers, data indicates that the impact will be felt on some of the leading

builders who continued to enjoy the confidence of the financial lenders and offered such schemes,”

said Anuj Puri, chairman, ANAROCK Property Consultants.

“However, the impact of the curb on subvention schemes is still minimal primarily because way back

in 2013, the RBI had clamped down on banks to stop upfront disbursement to developers for under-

construction or greenfield projects offering such schemes, and to stick to construction-linked

disbursals.”

The data suggests that MMR has the highest number of projects which were being marketed with

subvention schemes. Seventeen projects in MMR offered various schemes, the most prominent being

5:90:5 scheme. Bengaluru saw new supply of four projects during the quarter with some subvention

scheme on offer while the National Capital Region (NCR) had only one such project.

Popular subvention schemes included 20:80 or 25:75, wherein the buyer paid 20% upfront while the

builder paid the remaining 80% to HFCs or banks on behalf of the buyer till possession.

“The increasing number of delayed projects ultimately put buyers in the dock. Moreover, given that

HFCs didn‟t fall under the purview of the RBI back then, developers went calling on them as an

alternative post RBI‟s new ruling,” said Puri.

Real estate developer Sobha believes that demand in the residential sector will continue to grow as

benefits from the structural reforms begin to show results. It said the signs of consolidation are clearly

visible and will grow in the future.



Link https://realty.economictimes.indiatimes.com/news/industry/nhb-directive-on-subvention-to-have-little-impact-study/70712516

of 36

“The recent 35 bps repo rate cut by RBI is expected to give further impetus to residential demand, as

the EMI for homebuyers is likely to come down along with a reduction in interest cost for developers.

There need to be more policy initiatives to reboot the industry,” said JC Sharma, managing director,

Sobha.

In order to attract more buyers to their projects and to raise funds for construction, many players had

resorted to offering various subvention schemes. In these schemes, the developer takes it upon itself to

repay the home loan amount on behalf of the buyer for a certain agreed period. In some cases, buyers

were taken for a ride if they did not read the terms and conditions carefully.

The curb imposed by the National Housing Board adds to the financial strain of HFCs as they will no

longer be able to attract customers via these previously popular and muchused schemes. According to

industry estimates, subvention schemes comprised about 10-12% of home loan market in top eight

cities. Of late, subvention schemes were extended to even ready properties in cases where unsold

inventory was piling up.

Increasing concern over liquidity has made builders ask the government for a special package for the

industry. Last week, housing industry representatives met finance minister Nirmala Sitharaman on

issues ranging from the liquidity crisis engulfing non-banking finance companies (NBFCs), taxes,

last-mile funding and stalled projects.

“Rationalisation of taxation issues impacting real estate and resolution of liquidity crisis would be

paramount in helping real estate and infrastructure get a boost,” said Niranjan Hiranandani, president,

National Real Estate Development Council.

____________________________________________________________________

of 36

Hyderabad development body to auction 200 acres in Kokapet

Sources said the state government is keen on auctioning the land to cash in on the real estate

market, which is at its peak. Also, it needs money to complete ongoing projects and other

flagship schemes, sources said.

The Hyderabad Metropolitan Development Authority(HMDA) is planning to auction 200 acres

in Kokapet in Rajendranagar mandal, which is likely to fetch Rs 5,000 crore going by the current

market rate of the land there.

Sources said the state government is keen on auctioning the land to cash in on the real estate market,

which is at its peak. Also, it needs money to complete ongoing projects and other flagship schemes,

sources said.

The government asked HMDA to provide infrastructure and amenities on the land parcel. Officials

said HMDA is contemplating auctioning 200 out of 630 acres in a month. HMDA‟s auction of 67

plots in Uppal Bhagat area in April fetched Rs 670 crore. “Going by the market value, the government

may get around Rs 5,000 crore to Rs 6,000 crore. Each developed parcel will be between five acres

and 15 acres, which are suitable for IT firms and big business houses,” a senior official of HMDA

said.

HMDA sources said the authority‟s planning department has been asked to complete infrastructure

facilities on the entire 630 acres such as roads, underground drainage, water supply, streetlights,

footpaths and greenery as earlier auctioned land did not have the facilities. Survey of the land has

already started.

Municipal administration officials said of the 630 acres, around 350 acres has either been sold or

allotted to various departments and organisations by the state government and only 280 acres is left.

“After development of the land, leaving mandatory space for various amenities, the net plotted and

auctionable land will be around 200 acres,” an official of the municipal administration wing said.

The land was caught in legal wrangles for many years. HMDA claimed it won the legal battle in the

Supreme Court over the title dispute. Some firms, which took the land during previous auctions in

2006, did not pay the total amount over the land ownership.

Meanwhile, HMDA is waiting for the government‟s approval to go ahead with development of the

balance land in Uppal Bhagat and put it up for auction.

Officials said mobilising funds for funding various projects is not new. When YS Rajasekhara Reddy

was chief minister, HMDA conducted auctions at KBR Park near Jubilee Hills checkposs, Kokapet



Link https://realty.economictimes.indiatimes.com/news/industry/hyderabad-development-body-to-auction-200-acres-in-kokapet/70711225

of 36

and other land parcels owned by then AP Housing Board. HMDA contributed Rs 2,500 crore to then

government.

___________________________________________________________________

of 36

Displaced families in Sangli & Kolhapur to get homes under PMAY

scheme

Altogether 18,533 houses have suffered partial damage in these districts, while 1169 houses have

been completely damaged in Kolhapur and Sangli districts.

The flood-affected people in Sangli, Kolhapur and other districts in Pune division will be provided

houses under the Pradhan Mantri Awas Yojana (PMAY) scheme.

In all, 19,702 houses have been damaged in all the five districts in Pune division. These houses would

have to be reconstructed as per a preliminary assessment by district officials.

Altogether 18,533 houses have suffered partial damage in these districts, while 1169 houses have been

completely damaged in Kolhapur and Sangli districts. A separate policy is being worked out by the

housing department for the urban areas in these districts, officials said.

Meanwhile, the death toll in all five districts of Pune division, including Sangli, Kolhapur, Satara,

Pune and Solapur, has risen to 54, Pune divisional commissioner Deepak Mhaisekar said. Sangli

district reported the highest number of deaths at 26, Kolhapur 10, Pune district 9, Satara 8, while one

death has been registered from Solapur.

“We are committed to rehabilitate those affected in these areas and as per the direction of the chief

minister, a family will receive a subsidy of Rs2.5lakh for construction of houses under the PMAY

scheme. We are now working on a detailed policy on the same,‟‟ said housing secretary Sanjay

Kumar.

With many areas inundated and many structures in a dilapidated state, an assessment of such houses is

on, said Kolhapur collector Daulat Desai.

Meanwhile, state Confederation of Real Estate Developers Association of India (CREDAI) president

Rajiv Parikh said that their members have been mobilised to address the construction needs, while

relief work has already been undertaken by the developers‟ body.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/displaced-families-in-sangli-kolhapur-to-get-homes-under-pmay-scheme/70711535

of 36

Despite Madras HC stay, construction of housing units in Vellingiri

continues

Earlier, TNSCB had under the “house for all” scheme started to build 4,500 houses at

Kalimangalam, Thenkarai and Perur Chettipalayam villages in the district.

Flouting the Madras high court‟s stay on construction of Tamil Nadu Slum Clearance Board

(TNSCB)‟s housing units at the foothills of Vellingiri, work is still going on in full swing at one of the

three sites, say residents.

Earlier, TNSCB had under the “house for all” scheme started to build 4,500 houses at Kalimangalam,

Thenkarai and Perur Chettipalayam villages in the district.

The Vellingiri hill tribal protection society, however, moved a public interest litigation (PIL) before

the high court in June, saying the villages were under the Hill Area Conservation Authority (HACA).

While hearing the PIL on Wednesday, the court had stayed the construction activities until further

orders. The court had also directed the concerned authorities not to proceed with any earth work.

K Boopathy, a resident of Kalimangalam near Alandurai, said, “Despite the court order, construction

work is being carried out at the site here even at night. We had approached them several times, asking

them to stop work, but in vain. More than 10 labourers are working round-the-clock.” The housing

unit at Kalimangalam is being constructed between the residential and the forest areas.

He said the loud noise from the construction site would definitely disturb the wild animals as well.

Actually, it is because of this sound we came to know that the construction works are on.”

After the public raised questions, workers moved out of the construction site on Friday afternoon.

V Loganathan, president of Vellingiri hill tribal protection society, said the human-animal conflict

would further increase in the region if the multi-storied buildings were to come up very close to the

forest area.

“The number of wells has gone up in the area in tandem with the increase in agricultural activities and

buildings. As a result, sub-soil moisture has reduced and springs and streams in the forest have gone

dry, forcing animals to venture out to the plains in search of water,” said M Purushothaman, the

advocate who represents the tribal protection society, quoting the forest officials. He said TNSCB had

not obtained required permissions to commence construction activities in the hill area.



Link https://realty.economictimes.indiatimes.com/news/residential/despite-madras-hc-stay-construction-of-housing-units-in-vellingiri-continues/70711688

of 36

Denying the allegations, a senior TNSCB official said, “We have not carried out any construction

activities after the interim stay order was passed. We have only been taking safety measures like

closing the pits and moving construction materials out of the site.”

__________________________________________________________________

of 36

Construction debris continue to choke Madurai river beds

With renovation and construction activities taking place in many parts of the city, construction

debris is clearly not taken to the authorized dumping spots.

Uncontrolled dumping of construction debris at unauthorized locations has become a major menace in

parts of the city. Concerns have been raised about dust pollution from the rubble mounds adding to the

woes of the commuters.

With renovation and construction activities taking place in many parts of the city, construction debris

is clearly not taken to the authorized dumping spots.

Almost all the vacant plots, channels like Aavin channel in Anna Nagar, connecting roads

in Villapuram and even the Vaigai riverbank roads, where construction of check dams is underway

have become an easy target to dump these wastes.

Debris has been dumped at the entrance of a school in Melamadai and dust rising from it is causing

irritation to the eyes during heavy winds. We also experience breathing issues,” said S Sankar of

Karupayoorani.

Madurai Corporation allotted in 2017 four dedicated places for the building contractors to dump waste

from demolished buildings at all four zones. The selected spots were old dump yard at Vilangudi in

ward 1, Palathottam in Masthanpatti in ward 29, Gatelock Road in ward 71 and Vellaikkal dump yard

at 1, 2, 3, and 4th zone respectively.

Clearing charges for removal of debris was fixed at Rs 500 for 0.5 tonne to 0.75 tonne of debris, Rs

1,000 for 0.75 to 1.50 tonne and for debris weighing between 3 to 6 tonne it was fixed as Rs 4,000.

A Asokan of Makkal Sakthi Iyakkam, says that when someone demolishes a building, the person must

clear it immediately before starting the construction activity.

Tractor owners are ready to clear it for rates ranging from Rs 600 to Rs 1000 per load, but they are not

monitored where it is dumped. “It is the corporation which should fine them for dumping waste

indiscriminately at all available places,” he said.

Corporation sources said that the dumping along the channels and on the river, banks is done during

the night hours and it is difficult to identify the miscreants. But, this would be controlled once the

work on the river banks is completed. As far as dumping on vacant plots were concerned they could

not control it for they did not know if it was being done with the permission of the owner of the plot

or not.



Link https://realty.economictimes.indiatimes.com/news/infrastructure/construction-debris-continue-to-choke-madurai-river-beds/70711617

of 36

Madurai Corporation Commissioner S Visakan said that the rule for the four authorized places still

stands for the dumping of debris and a stricter vigil would be maintained to ensure that the contractors

followed the rules.

___________________________________________________________________

19-august-2019 - credai...

Documents