25 - 05 – 2020

CREDAI Bengal Daily News Update | 25.05.20

WEST BENGAL NEWS

Kolkata: Tall residential buildings pass wind test unscathed

So when Amphan roared in at 133km/h, they swayed merrily for an hour. That left the

building unscathed but left residents giddy with motion sickness.

All the tall buildings in the city passed the Amphan test with only ornamental features like

metal cladding and canopies being blown away by the express velocity winds. But two

buildings in particular — the city’s only skyscraper The 42, and The Atmosphere which has a

deck hanging between the twin towers, 152m above the ground — underwent a litmus test when

Amphan came calling. And both passed with aplomb.

All tall buildings are designed to sway in high velocity winds to prevent the pressure from

buckling under the force. So when Amphan roared in at 133km/h, they swayed merrily for an

hour. That left the building unscathed but left residents giddy with motion sickness.

The swaying should have been considerable on the 61st floor of The 42, leaving residents

violently sick. But a technology incorporated in the building was put to test on Wednesday

evening. And it worked perfectly to ensure that the building didn’t rock. On the eve of the

cyclone, a tank on the top floor was filled up with 120 tonne water.

“The tower being very slender, it naturally sways quite a bit when there is heavy wind pressure

or earthquake. But that would leave residents in extreme discomfort. To address the problem, a

tuned liquid damper (TLD) tank was constructed at 246m, on the top most floor of the building.

The TLD tank consists of two tanks, one atop the other separated by an intermediate baffle wall

of 50% porosity. These tanks are filled with 120 tonne water. If the tower moves in a cyclone or

earthquake, the water contained within the tank sloshes in the opposite direction of the tower’s

movement due to rules of inertia. The load of the tank at the top of the tower thus compensates

for the sway of the building,” explained Yashaswi Shroff of Alcove Realty, one of the

companies in the consortium that developed the 250m building on Chowringhee.

While several slim skyscrapers around the world use such TLD tanks, The 42 is the first

building in Kolkata to put the technology into use.

The building’s facade, including balcony railings and glass, held up in the wind whose speed

would have reached 150km/h in the floors above. The facade was designed after wind-tunnel

tests were carried out by RWDI, Canada and Windtech Consultants, Australia. “Façade design

Newspaper/Online ET Realty ( online )

Date May 23, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/kolkata-tall-

residential-buildings-pass-wind-test-unscathed/75924570

firm BES Consultants used the data to determine the structural strength required for various

parts of the façade. After the cyclone, it’s completely intact,” said Shroff.

At The Atmosphere, developer Rahul Saraf knew the cylone would test Deya, the triple deck

hanging club in the air. But what he was concerned most was whether the palm trees atop could

weather the storm. On Tuesday, the palms were reinforced. “The morning after the storm, it was

devastating to see so many trees uprooted in the city. But thankfully, the palms had all

survived,” said Saraf.

________________________________________________________________

OTHER NEWS

Hit by lockdown, construction industry seeks immediate release of

pending dues from govt agencies

Finance minister Nirmala Sitharaman recently announced a stimulus package of Rs 20

lakh crore, or 10 per cent of the GDP, in five tranches to give a boost to the economy

which will be in the negative territory for the current fiscal.

As the ongoing lockdown has severely impacted infrastructure activities across the country,

liquidity starved engineering and construction industry is seeking immediate release of long

pending dues from the central and state government agencies.

According to industry players, release of these dues, most of which are stuck in arbitration and

run into thousands of crores of rupees, would bring in immediate liquidity in the current

COVID crisis scenario, rather than the Rs 20 lakh crore economic stimulus package announced

recently.

Finance minister Nirmala Sitharaman recently announced a stimulus package of Rs 20 lakh

crore, or 10 per cent of the GDP, in five tranches to give a boost to the economy which will be

in the negative territory for the current fiscal.

“Funding of construction projects will be instrumental in helping revive the economy as

infrastructure investment has the highest GDP multiplier factor, almost 2.0x, and our industry is

among the largest employment generators impacting seven crore households. Risk aversion by

financial institutions to infrastructure was prevalent pre-COVID, and has now worsened,” HCC

Director and Group CEO Arjun Dhawan told PTI.

He further said that contract enforcement and timely dispute resolution is the bedrock of free

enterprise and while we all hope for swifter conciliation or court proceedings, an immediate

solution is the unqualified payment of arbitration dues without repeated challenge in courts or

the onerous requirement of bank guarantees.

Newspaper/Online Financial Express ( online )

Date May 24, 2020

Link https://www.financialexpress.com/industry/construction-industry-seeks-immediate-

release-of-pending-dues-from-govt-agencies/1969157/

“This immediate liquidity will repay lenders, unlock supply chains, protect thousands of

MSMEs including migrant labour while restarting the profit cycle that will trigger our economic

revival,” he added.

National Highways Authority of India (NHAI) alone has at least 180 cases in arbitration

involving a sum of about Rs 80,000 crore. The agency has been holding dialogues (with

contractors and industry players) to find resolution to disputes through reconciliation.

Meanwhile, the Reserve Bank of India has also slashed the repo rate by 40 basis points in eighth

straight cut and also allowed lenders to extend an ongoing moratorium on loan repayment,

which was due to end on May 31, by another three months till August 31, a move intended at

easing liquidity pressure.

“These initiatives will boost liquidity subsequently as the clients or customers can avail credit,

but eventually it would be spent on project execution. The policy announced relaxation in time

limits for infra projects, but is silent on who would bear the cost implications of lockdown.

Once lockdown ends, we expect more clarity and that would put to rest this debate,” Tata

Projects Chief Strategy Officer Himanshu Chaturvedi said.

Echoing similar views, global professional services firm Alvarez & Marsal Managing Director

Venkataraman Renganathan opined that the stimulus package is a step in the right direction and

is intended to infuse liquidity into the system, however, it is a credit line.

“In a way, the stimulus package will get in the liquidity for projects which have been stranded

for money. However, we need to understand that this is a credit line and not a bailout package.

So, the contractors will have to repay the money.

“The issue of non-settlement of dues by the authorities has been there in the pre-COVID period.

However, in the current scenario, the money which they owe to the contractors, if paid, will

provide the much needed liquidity to them,” he added.

Another industry expert, who did not wish to be named said, “while lending, banks will

lend only to those players whose credit scores are good. However, companies which

are already under stress due to various reasons, will not get the credit. Many of these

players have thousands of crores of rupees pending under arbitration with the

government agencies or yet to be paid”.

_____________________________________________________________________

Realtors body NAREDCO to set up supply chain emergency

sourcing platform

The platform will also work towards improving the supply chain and speeding up

construction work.

Realty developers’ association, the National Real Estate Development Council (NAREDCO) is

planning to create a platform to enable its members address the key issue of disruption in the

supply chain being faced by developers in the backdrop of the Covid19 pandemic.

The platform will also work towards improving the supply chain and speeding up construction

work.

Apart from disrupted supply chain, real estate sector is facing other key challenges of

availability of workers, liquidity crunch and improving overall construction activities across the

country.

As the situation moves closer to normalization with lockdowns easing across India, real estate

developers are now looking forward to rapid traction in terms of construction activities as also

liquidity relief from the government.

“We need to find out ways in which we can cooperate with each other in the immediate term,

and support our suppliers. One option could be to pool our resources; NAREDCO can set up a

platform which can be a Supply Chain Emergency Sourcing Platform. If anyone has a problem,

a pooling of resources can help normalize the supply chain,” said Niranjan Hiranandani,

president, NAREDCO.

By collating orders to get supplies, developers are looking to secure construction material at a

preferred rate from suppliers.

According to him, there are too many links missing in the supply chain. Many suppliers are in

the containment or red zones, putting developers in a dilemma.

So far, the government has allowed workers who are available on site to carry out construction

activity. Initially, the Ministry of Home Affairs (MHA) was unwilling to let construction

activities other than emergency and pre-monsoon activities to start. However, now they have

agreed to further construction work also going ahead.

____________________________________________________________________________________

Newspaper/Online Economic Times ( online )

Date May 23, 2020

Link

https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/realtors-body-naredco-to-set-up-supply-chain-emergency-sourcing-

platform/articleshow/75924263.cms

Reverse migration may raise housing demand in tier-II, III cities:

Report

Currently, the top seven cities account for almost 70 per cent of India's residential market,

with the remaining 30 per cent accounted for in tier-II and III cities. This ratio may well

change in times to come, it said.

The reverse migration happening across the country from the metro cities is likely to increase

housing demand in tier-II and tier-III cities, initially in the rental housing segment, according to

an Anarock report.

Currently, the top seven cities account for almost 70 per cent of India's residential market, with

the remaining 30 per cent accounted for in tier-II and III cities. This ratio may well change in

times to come, it said.

"Indian real estate is bracing itself for a very new post-COVID-19 world. One significant trend

may be reverse migration spurring housing demand in tier-II and III cities," said the report titled

'India Real Estate: A Different World Post COVID-19'.

Cities including Lucknow, Indore, Chandigarh, Kochi, Coimbatore, Jaipur and Ahmedabad

would be the main beneficiaries of the reverse migration of professionals who have lost their

jobs in the metros, or are likely to, it said, adding that these returnees will benefit from the cost

of living and superior infrastructure that many tier-II and tier-III cities provide.

Anuj Puri, Chairman of Anarock Property Consultants said, " Reverse migration is already very

visible among migrant labourers, and this trend can further percolate to skilled professionals

who have been or may beoff-rostered. Smaller towns and cities would consequently see a spurt

in housing demand."

He said that primary demand may be towards rental housing and purchase demand would

initially come from local investors keen to meet the rental demand.

"Many NRIs will also return to India amidst dwindling job prospects, particularly in the US and

European nations which account for nearly 70 per cent global cases. For them, the top seven

cities would be the best options but many will consider smaller cities where they can be close to

their families. Finding suitable employment for reverse-migrating Indians in smaller cities may

prove to be challenging," Puri said.

Anarock's recent consumer survey taken during the lockdown period indicates that among the

respondents who preferred to invest in tier-II and III cities in 2020, 61 per cent are end-users

and almost 55 per cent are aged under 35 years.

Newspaper/Online Economic Times ( online )

Date May 24, 2020

Link

https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/reverse-migration-may-raise-housing-demand-in-tier-ii-iii-cities-

report/articleshow/75941133.cms

At least 47 per cent of respondents are focused on affordable properties priced within Rs 45

lakh, followed by 34 per cent who are looking for mid-segment homes priced between Rs 45-90

lakh.

The residential segment will see a manifold increase in demand for townships projects which

offer a controlled environment, as per the report. In terms of supply, township projects have less

than 5 per cent overall share in the top seven cities as on date.

Further market consolidation is expected with the increased preference for branded developers.

Financially strong organized players are likely to occupy 75-80 per cent market share in the

coming years, it said.

____________________________________________________________________________________________

Government looks at dedicated NCLT benches for insolvency cases

"What is leading to the lag in timelines in India is the extraordinary burden that the

NCLT is faced with the IBC cases, because of which there have been reports that

Companies Act matters are taking longer," he said.

In view of a huge backlog of cases at the NCLT, the government will start identifying benches

to specifically deal with insolvency and Companies Act-related matters, an official in the

corporate affairs ministry said on Saturday.

In this regard, the ministry will start with the NCLT benches of Delhi and Mumbai, where more

than half of the country's incorporated firms are registered, K V R Murty, joint secretary in the

Ministry of Corporate Affairs, said while addressing an ASSOCHAM webinar on 'Regulators'

Web-Confluence on Corporate Restructuring, M&As and Joint Venture'.

"What is leading to the lag in timelines in India is the extraordinary burden that the NCLT is

faced with the IBC cases, because of which there have been reports that Companies Act matters

are taking longer," he said.

Murty further said that the government is increasing the bench strengths of the tribunals for

faster disposal of matters.

Among other measures, he said "we are also looking at options where we could identify

benches specifically for IBC (Insolvency and Bankruptcy Code)and Companies Act-related

matters".

The Ministry of Corporate Affairs "will begin identifying the benches initially in Delhi and

Mumbai where more than half of the incorporated companies in India are registered".

So, these are the focus cities to begin with and the government would like to expand the

capability and capacity of the National Company Law Tribunal (NCLT) to handle high volume

of cases, the joint secretary said.

The focus will also be on having dedicated benches so that matters get listed and heard faster,

he added.

Further, he said, this combined with expanding the classes or the coverage of companies which

can be handled through the fast-track mechanism is the way to go forward.

Newspaper/Online ET Realty ( online )

Date May 23, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/government-looks-at-

dedicated-nclt-benches-for-insolvency/75924410

"If industry bodies could come up with some kind of white paper, self-contained comprehensive

proposal to us also indicating therein as to what is happening across various jurisdictions, that

will be a big help and it will cut down the timelines on formulating the suitable framework,"

Murty explained.

Recently, the government had legislated changes to the insolvency code to fast-track processing

of cases where a restructuring plan has been agreed in advance between the company and its

creditors following the pause in bankruptcy resolutions because of the COVID-19 pandemic.

Once the changes to the Insolvency and Bankruptcy Code are approved by Parliament, this pre-

packaged insolvency procedure will help ease the burden on bankruptcy courts.

________________________________________________________________

Hyderabad: One lakh 2-BHK houses for poor to be completed by

October

Officials and contractors have taken it up as a challenge to complete construction of one

lakh 2-BHK units in and around Greater Hyderabad by Dasara in tune with the

announcement made by municipal minister KT Rama Rao.

The dream of becoming owners of ‘dignified housing’ will come true for 50,000 families by

August. In all, one lakh families will have housing by Dasara this October. The government has

sped up the construction of 2-BHK housing units, a flagship project of chief minister K

Chandrasekhar Rao.

Officials and contractors have taken it up as a challenge to complete construction of one lakh 2-

BHK units in and around Greater Hyderabad by Dasara in tune with the announcement made by

municipal minister KT Rama Rao.

Though there is a shortage labourers, the municipal administration department, on the directions

of KTR, has given a free hand to the contractors to bring labourers from districts and other

states by arranging special buses and through trains. The government will provide passes by

talking to state governments.

What’s more, KTR has also promised the working agencies (contractors) that their problems

pertaining to the supply and rising prices of steel, cement and sand would be solved and

directed the officials of municipal administration and housing to convene a special meeting with

the working agencies.

About one lakh double bedroom housing units are under final stages of construction in and

around the city under the supervision of GHMC. Also, the TRS government has loosened its

purse strings to ensure that the 2-BHK project is completed at the earliest. As much as ₹11,917

crore was allocated to the housing department in the 2020-21budget.

GHMC commissioner Lokesh Kumar said efforts are being made to complete works on a war

footing and deliver the houses by Dasara.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date May 24, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/hyderabad-one-lakh-

2-bhk-houses-for-poor-to-be-completed-by-october/75943277

Karnataka collects Rs 253 crore since April 24 as property

registration picks up pace

Officials said the government has mopped up Rs 253 crore since all sub-registrar offices,

barring three, resumed registration of properties from April 24 amid various restrictions.

Karnataka's retail real estate market is slowly emerging from the Covid-19 slump, going by the

revenue generated from property transactions in one month of operations during the lockdown.

Officials said the government has mopped up Rs 253 crore since all sub-registrar offices,

barring three, resumed registration of properties from April 24 amid various restrictions. Till

May 21, a total of 68,000 documents have been registered of which 60% are related to property.

The average revenue generated in the period, officials said, works out to Rs 15 crore a day. In

peak season, it averages at Rs 40 crore - Rs 45 crore a day.

About 60% of the registrations are in Bengaluru and neighbouring districts, officials said. With

home loan EMIs set to turn cheaper after RBI's rate cut, the government is expecting revenue

from registrations to go up to Rs 20 crore per day by May-end and Rs 25 crore in June.

"The data suggests that some buoyancy may be returning to the real estate market. We may end

up collecting more revenue than the target estimated in the budget,"said KP Mohan Raj,

inspector general of registrations and commissioner of stamps.

Property registration helps K’taka earn Rs 15 cr every day’

The state government has set a revenue collection target of Rs 12,655 crore in the 2020-21

fiscal year, which is about Rs 35 crore per day from stamps and registrations.

Officials said Karnataka has been doing better than its neighbours so far: “While we are netting

average revenue of Rs 15 crore per day, Tamil Nadu and Telangana have been earning Rs 10

crore and Rs 6 crore, respectively. The sub-registrar offices opened at the same time as ours in

these states.” Across Karnataka, 242 sub-registrar offices are functional.

“Over 70% of revenue is generated through sale of flats and plots while 30% of the documents

are gift deeds or related to marriages, partition, and mortgage,” said an official of the stamps

and registration department.

Newspaper/Online ET Realty ( online )

Date May 24, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/karnataka-collects-rs-

253-crore-since-april-24-as-property-registration-picks-up-pace/75943114

“The current sales after partial easing is 20% of normal. Our completed projects are seeing

greater traction. Construction schedules will get affected though we are confident of

maintaining RERA timelines for our projects. The impact of labourers going back is still

unknown,” said Rajendra Joshi, CEO (residential) of Brigade Enterprises. “The government can

help us by reducing stamp duty and allowing developers to pay only a nominal part of fees at

the time of approvals.”

________________________________________________________________

Pune civic body staff in a fix over action against dilapidated

structures

The PMC carries out action against dangerous properties in the municipal limits every

year ahead of the monsoon.

The demolition of dilapidated structures in the city’s containment zones ahead of the monsoon

has become a cause of concern for the civic administration.

The Pune Municipal Corporation (PMC) has identified 15 rundown structures as extremely

risky in the central parts of the city, which include Kasba Peth, Bhavani Peth, Guruwar Peth,

Shukrawar Peth, Nana Peth, Ganesh Peth, Shaniwar Peth and Rasta Peth. With maximum

number of Covid-19 cases, these areas have been classified as containment zone.

The civic officials said given the severity of the outbreak in these areas, they can neither ask the

occupants of these structures to evacuate the properties nor can they risk lives of the latter

owing to the probability of the weakened structure crumbling down.

The PMC carries out action against dangerous properties in the municipal limits every year

ahead of the monsoon. The residents of these properties are asked to move out to safer places

and the vacant structures are demolished. This year, the civic body has identified 250 properties

that pose threat to lives. As many as 25 of the 250 properties are identified as “extremely risky”

and 15 of these are in the containment zone, while the remaining 10 are in the non-containment

zones.

“We had served notices to the property owners of these structures, but they are yet to vacate the

houses. This has complicated the process. The staff is in a fix on how to handle the situation,” a

civic official said.

Civic officials said the demolition drive would also focus on pulling down dangerous retaining

wall and labour camps. “The drive in the non-containment zones has already started. Some

properties have already been razed. We will take a call on the action in containment zones and

plan it accordingly,” Rajendra Raut from the PMC’s building permissions department said.

He said a public notice about the action was issued in April. Such notices will also be issued in

the days to come. Those living in such properties should corporate with the civic administration.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date May 25, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-body-

staff-in-a-fix-over-action-against-dilapidated-structures/75962694

Ahmedabad civic body to give 10% rebate on advance property tax

Bhatt said that the maximum rebate was 10% and the scheme was announced for the year

2019-20 as well and over 4 lakh had availed of it.

The Ahmedabad Municipal Corporation has decided to give 10% rebate to property owners

who wish to pay advance property tax for the year 2020-21.

Standing committee chairman Amul Bhatt and mayor Bijal Patel said in a statement that the

corporation has decided that property owners who have paid property taxes for the year 2019-20

and wish to pay advance taxes can do so between June 1 and June 30. And those paying taxes

for the year 2020-21 will be eligible for the rebate.

Bhatt said that the maximum rebate was 10% and the scheme was announced for the year 2019-

20 as well and over 4 lakh had availed of it. This year, the corporation expects a similar

response, officials said.

A senior officer said that the rebate will benefit businesspersons in the city as they have to pay

commercial property taxes which are on the higher side. He, however, also noted that business

establishments have not been operating since March after the lockdown began. He said that with

virtually no income, the corporation wanted money not only to run the anti Covid-19 operation

but also to pay contractors who want to begin work again in the city.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date May 24, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/ahmedabad-civic-

body-to-give-10-rebate-on-advance-property-tax/75943343

Haryana to give 25% rebate to property owners who pay dues by

August 31

“The revised property tax bills can be checked on MCG website from May 25 and bills

will also be delivered through SMS and paper bills from June 1,” said Vinay Pratap

Singh, MCG commissioner.

The Haryana government has announced a one-time rebate of 25% to property owners who pay

their dues for the years 2010-11 to 2016-17 by August 31. The special rebates aims at reducing

the property tax obligation of residents during Covid restrictions, officials said.

“The revised property tax bills can be checked on MCG website from May 25 and bills will also

be delivered through SMS and paper bills from June 1.

Property owners in Gurgaon should pay their dues timely to avail the rebate. Moreover, 18% of

interest will be levied annually on the tax defaulters not paying their dues. In case of non-

payment, their properties will be sealed and the process of auction will follow,” said Vinay

Pratap Singh, MCG commissioner.

He said that property owners who have paid the property tax of the assessment year by July 31

of that assessment year will be given 10% rebate.

Moreover, an additional 10% rebate will be provided to those property owners who have

deposited their property tax dues for the years 2017-18, 2018-19 and 2019-20 consecutively by

July 31 of that year as a good tax payer reward for the year 2020-21. Moreover, the owners

paying property tax through auto debit system will be given an additional 5% tax rebate.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date May 24, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/haryana-to-give-25-

rebate-to-property-owners-who-pay-dues-by-august-31/75943397

Mysuru civic body extends rebate period on property tax

According to the Karnataka Municipal Corporation Act 1976, the civic body provides 5%

rebate on the tax payable by the property owners in April — the first month after the end

of the financial year every year.

Mysuru City Corporation (MCC) has extended the property tax rebate period till May 31 due to

the lockdown.

According to the Karnataka Municipal Corporation Act 1976, the civic body provides 5%

rebate on the tax payable by the property owners in April — the first month after the end of the

financial year every year.

But due to the lockdown, MCC authorities had written to the government to extend the date for

availing the benefits in a bid to avoid people thronging the banks. After getting approval from

the directorate of municipal administration, the MCC has extended the last date to avail rebate

on property tax till May 31.

The civic body. which is in deep financial crisis due to defaulters not paying taxes, is badly hit

by the lockdown. MCC deputy commissioner (revenue) T B Kumara Naik told TOI that there

has been minimal property tax collection from March 25 in the region due to the

lockdown.“From March last week, MCC has not received any tax amount. We had set a target

of getting Rs 160 crores for the financial year, but we have managed to get Rs 127 crores,” he

added.

There are 1,83,535 properties in MCC limits of which 1,58,156 are general properties while

25,379 are revenue properties. Out of the general properties, 13,972 are sites, 1,34,871 are

houses and 1,34,871 commercial establishments. MCC, which had the budget of around Rs 713

crore, had expected revenue of around Rs 160 crore through property tax. The civic body had

collected around Rs 105 crore tax by end of December 2019 and had expected to collect the

remaining Rs 60 crore pending amount by end of the financial year in March.

Speaking to TOI, MCC commissioner Gurudatta Hegde said, “Due to the lockdown, bank

counters at the zonal offices are closed. Once the situation normalises, the counters will be

opened up to the tax payers.”

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date May 24, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/mysuru-civic-body-

extends-rebate-period-on-property-tax/75924035