5--nov oct--2019credaibengal.in/wp-content/uploads/2019/11/05nov19-cb... · 2020-02-28 · realty...

10-Oct-2019 05-Nov-2019

CREDAI Bengal Daily News Update | 05.11.19

Centre to come-up with e-commerce platform for real estate:

Housing Minister

The objective of e-commerce platform is to bring transparency in the sector and offer only

certified projects.

The central government will come up with an e-commerce platform for real estate sector, union

housing and urban affairs minister Hardeep Singh Puri said.

“I had a discussion with CREDAI and NAREDCO and very soon we will come up with the e-

commerce platform for real estate sector,” said Puri in the first National RERA conclave in

Lucknow on Monday.

CREDAI ( Confederation of Real Estate Developers Association of India) and NAREDCO

(National Real Estate Development Council ) are the two main national body of real estate

developers.

The objective of e-commerce platform is to bring transparency in the sector and offer only

certified projects.

“The platform, which will be launched by January, will have a list of project that have received

the Occupancy Certificate (OC). The purchase will be online and sale will happen via

NAREDCO so that responsibility can be fixed,” said Parveen Jain, Vice Chairman,

NAREDCO.

________________________________________________________________

Newspaper/Online ET Realty(online)

Date November 04, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/centre-to-come-up-with-e-commerce-platform-for-real-estate-housing-minister/71890968

Realty reality: SC seeks govt, RBI reply on plea to call projects „3rd

party assets‟

IBA and Jaypee group have been asked to reply on a plea that sale proceeds of the project

should go to homebuyers only if the builder fails to deliver the property.

The Supreme Court on Monday sought response from the Centre, RBI, the Indian Banks‟

Association and the Jaypee group on a petition seeking to declare that the real estate projects are

“third party assets” held by builders in trust for the homebuyers. The sale proceeds of the

project, thus, should go to the homebuyers only if the builder fails to deliver the property.

A Bench, led by Justice SA Nazeer, issued notices to ministries of corporate affairs and law and

justice, the Indian Banks‟ Association, RBI, embattled real estate firm Jaypee Infratech, its

parent company Jaiprakash Associates on a petition by Sachin Sudheer, a homebuyer of the

Jaypee group. The petition alleged that in the absence of such a declaration, all the homebuyers

were likely to lose their money to the secured lenders due to misunderstanding of the

appropriate legal position in this regard.

According to Sudheer, Section 11(4)(h) of the Real Estate (Regulation and Development) Act,

2016, prohibits mortgage of the plot/home/apartment allotted to a homebuyer by the builder. If

mortgage has been created on these assets before such allotment, the same has the approval of

the secured creditor. The latter, by voluntarily surrendering their security interests in favour of

homebuyers, lose their security right on the mortgage so created, he said. Thus, an allottee is the

beneficial owner of the plot, apartment or building allotted to him and the secured creditor has

no right or preferential claim, whatsoever, on the real estate project.

The mortgage, created by the developer in favour of lenders on the assets, is prohibited after

entering into an agreement for allotment with a homebuyer. In any case, such mortgage shall

not affect the rights and the interests of the homebuyer, he said.

“No law of the land permits robbing Peter to pay Paul. If homebuyers are treated as unsecured

creditors for all the purposes of the Insolvency and Bankruptcy Code 2016, for the distribution

of liquidation assets under Section 53 of IBC the homebuyers stand to lose the entire amount

paid by them to the builder,” the petition filed through counsel Balaji Srinivasan stated.

According to the counsel, the assets so created with the homebuyers‟ money will be sold as

Newspaper/Online Financial Express(online)


Link https://www.financialexpress.com/industry/realty-reality-sc-seeks-govt-rbi-reply-on-plea-to-call-projects-3rd-party-assets/1754475/

liquidation assets, the secured creditors will recover their dues and the homebuyers will get

nothing. This, according to him, is neither intended by the code nor by the Rera Act.

He further stated that the homebuyers, being treated as financial creditors and unsecured

creditors, will in no way undermine their position as “third parties”, whose assets are held by

the corporate debtor in “trust” for the purposes of Section 53 of the Code.

Citing the earlier SC judgment in Pioneer Urban Land and Infrastructure vs UoI that held that

RERA is to be read harmoniously with the Code, the counsel argued there is no conflict

between the two as the Code had adopted the definitions of “allottee” and “real estate project”

as given in RERA. Even both the enactments make homebuyers the beneficial owners of the

assets so created. ___________________________________________________________________________________

Co-working space companies go on fundraising spree to fuel

growth

Large players in India in talks with institutional investors to raise money to fund

expansions. Leasing activity rose by more than 30% annually, crossing 47 million sq. ft.

during January-September this year, says CBRE South Asia Q3 office report.

Coworking spaces operator WeWork‟s recent global debacle seems to have had minimal impact

on India‟s growing flexible space segment, as quite a few large players are looking to raise

capital to fuel growth even as many companies have already raised funds this year.

WeWork‟s parent, The We Company, withdrew its initial public offering a week after the

SoftBank-backed flexible office startup ousted founder Adam Neumann as chief executive last

month.

Large players in India, including We-Work and homegrown Cowrks, are in talks with

institutional investors to raise money, while others such as Awfis and Smartworks have already

closed funding to enter new markets and to increase desk counts across cities where they

already have a presence in.

Co-working as a concept has gained increased acceptance, with large companies becoming

mainstream occupiers of space, constituting approximately 80% of the overall client roster. The

segment contributed 15% of total office demand in the first nine months of 2019.

“We are looking to raise $200 million and are talking to both domestic and global capital.

Flexible office space is here to stay and demand continues to be strong,” said Karan Virwani,

CWeO, WeWork India. The company plans to double the number of desks in India to 100,000

by end-2020.



Link https://realty.economictimes.indiatimes.com/news/commercial/co-working-space-companies-go-on-fundraising-spree-to-fuel-growth/71889104

Singapore-based Keppel Land recently invested $25 million in Smartworks Coworking Space, a

flexible space solutions provider, for a minority stake. “Institutional investors are still bullish on

alternative space providers, despite what has happened globally,” said Harsh Binani, its

cofounder.

Smartworks‟ fundraising comes amid the ongoing developments around WeWork.

“We are approached by capital and strategic partners to spur growth to meet a burgeoning

demand that will throw up profits, and not simply add seats as a valuation metric,” said

Abhishek Goenka, CEO, CoWrks, which is looking to raise capital to fund growth.

Leasing activity rose by more than 30% annually, crossing 47 million sq. ft. during January-

September this year, according to the CBRE South Asia Q3 office report.

Technology companies drove office space take-up and their share rose to 40% from 31%

earlier. Research, consulting and analytics companies (19%), and flexible space operators

(15%) followed technology firms, the report said.

The collaborative space segment has seen up to 300% growth in the last three years, with many

firms expanding aggressively across major cities. The trend is likely to continue this year too,

resulting in their share in overall leasing remaining high by end-2019.

This segment is expected to target secondary markets in tier I cities, along with major micro-

markets in tier II and tier III cities.

________________________________________________________________

Top listed realtors‟ residential sales jump two-fold since

demonetisation

“The housing space sold by the nine listed firms in the first quarter of the current fiscal

was nearly 17.5 million sq ft in a single quarter — slightly less than half the total space

sold in all four quarters of 2018-19.

Listed real estate developers have beaten the residential downturn blues so far this year.

Residential sales value of top 9 realty developers in the first quarter of 2019-20 stood at around

Rs 5,280 crore; in 2018-19, their sales jumped 159% compared with 2016-17, and also

surpassed the market's peak years of 2014-15 by 63%. The total sales value achieved by these

players in 2018-19 was around Rs 22,800 crore.

These companies have together sold around 44 million sq ft of residential space in 2018-19

against around 17 million sq ft in 2016-17— the demonetisation period — and 27 million sq ft

in 2014-15. Their sales have collectively grown by 63% since the housing market's peak years

of 2014-15, showed data from ANAROCK Research.

“The housing space sold by the nine listed firms in the first quarter of the current fiscal was

nearly 17.5 million sq ft in a single quarter — slightly less than half the total space sold in all

four quarters of 2018-19.

While the data for the three quarters of this financial year is still underway, we can expect sales

to be much higher,” said Anuj Puri, chairman, ANAROCK Property Consultants. The top listed

developers considered for analysing trends include DLF, Mahindra Lifespace Developers,

Godrej Properties, Oberoi Realty, Sobha, Puravankara, Prestige Estates, Brigade Enterprises

and Kolte Patil Developers.

“Homebuyers are returning to the market but given the uncertainty and trust deficit in the realty

sector, established and listed developers with strong execution track record are witnessing good

sales traction. Among the various offerings, ready to move in and near completion projects are

being preferred by homebuyers for this very reason,” said Rajeev Talwar, CEO, DLF.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/top-listed-realtors-residential-sales-jump-two-fold-since-demonetisation/71915252

Government will guard interests of homebuyers: Uttar Pradesh

CM

He said every homebuyer in the state must get his or her house within a certain time-

frame as all hard-earned money goes in for the purchase of houses.

Uttar Pradesh Chief Minister Yogi Adityanath said on Monday that his government cannot

remain a mute spectator to homebuyers being duped by real estate companies and would guard

the interests of the buyers.

He said every homebuyer in the state must get his or her house within a certain time-frame as

all hard-earned money goes in for the purchase of houses.

Speaking at the inaugural function of first National Real Estate Regulatory Authority Conclave

in Lucknow on Monday, the Chief Minister further assured that his government will take every

positive initiative in this regard so that people will again start believing in this sector.

Union Minister of State for Housing and Urban Affairs Hardeep Singh Puri said that

implementation of Real Estate (Regulation and Development) Act, is a big step for the rights of

buyers and now history in the housing sector will be written as "pre-RERA and post-RERA

scenario".

He said Uttar Pradesh is the best-performing state as far as the flagship schemes of central

government are concerned.

He announced that very soon a real estate e-commerce portal will be launched and will be

operational on the occasion of Makar Sankranti in January.

Union Housing Secretary Durga Shanker Misra, State Chief Secretary R K Tewari and RERA

chief Rajive Kumar also attended the function.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/government-will-guard-interests-of-homebuyers-uttar-pradesh-cm/71895081

Kolhapur: Over 80 building-related files cleared in special camp

The Kolhapur Municipal Corporation (KMC) had organised a similar camp in

September, during which 116 files were cleared.

A special camp organised by the town planning department on Saturday cleared 89 files

pertaining to various development-related permissions and certificates.

The camp was held at the town planning office in Rajarampuri‟s Bagal Market. The Kolhapur

Municipal Corporation (KMC) had organised a similar camp in September, during which 116

files were cleared.

However, the citizens demanded another camp owing to large number of files pending with the

department for quite a few months. According to the town planning officials, 106 applications

were made, of which 89 were cleared.

The applications were related to building permissions, scrutiny of building plans, occupancy

certificates, clearance to the layouts, division of land plots, permissions to architects, renovation

plans and providing maps and no-objection certificates.

A senior official of the department, on the condition of anonymity, said, “Owing to some

technical glitches, the files could not be processed for several months. Recently, the government

has set deadlines for each task to be performed. For instance, the building plans have to be

approved within a period of 90 days. However, at times, owing to the large number of proposals

and inadequate staff, the plans are not approved on time. We have decided to hold such special

camps at least once in three months so that the applications are cleared speedily.”

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/kolhapur-over-80-building-related-files-cleared-in-special-camp/71888415

Chandigarh administration approves layout, zoning of IT Park

towers

The officers‟ complex will have about 350 flats in 12 towers spread over 6.47 acres.

The UT administrator has finally approved the revised layout and zoning of the city‟s costliest

project to construct about 1,200 flats at IT Park. The Chandigarh Housing Board (CHB) will

construct the project at a cost of Rs 748 crore. It will be divided into two parts: one for the

Punjab, Haryana and UT administration officers and the other for the public.

The officers‟ complex will have about 350 flats in 12 towers spread over 6.47 acres. The

general residential complex will come up on 17 acres and have around 850 flats. The former is

likely to cost Rs 140 crore and the latter Rs 340 crore.

The officers‟ towers will be divided among the Chandigarh administration and the Haryana and

Punjab governments. Besides, 15% of the houses will be built for the economically-weaker

section (EWS). The Punjab and Haryana governments and the UT administration will purchase

these flats from the CHB. While the Haryana government has already given its consent to the

administration, there is no official agreement from the two others.

The project, to be built on 40% of the land, will include water, road, swimming pool and club

facilities, among others. While zoning it, the UT administration has underlined its various

features, including covered area, parking norms, construction regulations, water harvesting

project, tower height and green belts.

“The UT administrator has approved the project‟s zoning and layout plan. In both the

complexes, each flat will be of 74‟-6‟‟ and with floor area ratio (FAR) of 2. The towers will

have ground plus six floors. There was a demand of more floors in both these projects, which



Link https://realty.economictimes.indiatimes.com/news/infrastructure/chandigarh-administration-approves-layout-zoning-of-it-park-towers/71891955

has been rejected,” said a senior UT officer.

The flats will be constructed by the CHB‟s engineering department. The administration had

acquired around 123 acres of land in IT Park. Besides, area has also been kept for a hospital

site, a five-star hotel and other projects as per demand.

________________________________________________________________

Chennai: Three years on, Moulivakkam twin towers' buyers still

await refund

While banks have forwarded the buyers to debt recovery tribunal over non-payment of

equated monthly installments (EMIs), the developer has put the property up for sale.

Three years after the demolition of a 11-storeyed building, whose twin towers collapsed in 2014

at Moulivakkam, homebuyers who had invested in the property are still running from pillar to

post for refund of their life investments.

While banks have forwarded the buyers to debt recovery tribunal over non-payment of equated

monthly installments (EMIs), the developer has put the property up for sale.

Septuagenarian Ramamoorthy is one of the 76 buyers who lost his life's savings after his dream

home collapsed in seconds. The price range of apartment units varied from 55 lakh to 75 lakh.

"We had invested 60 lakh for booking a 1,400 square feet apartment. Our entire post-retirement

benefits went into buying the single apartment," the retired government employee said.

The twin multi-storey building complex named 'Trust Heights' had two towers titled as 'Faith'

and 'Belief'. As construction comprising 84 units with two and three BHKs was being executed

on full swing, the 11-storey 'Faith' collapsed on June 28, 2014, killing 61 persons, mostly

construction workers. Three years down the line, the state government pulled down the second

structure that stood a few metres away citing safety reasons on November 2, 2016.

Ratna Mishra, another homebuyer in Moulivakkam, said that most of the customers have paid

about 70% to 80% of their total payment. "We are suffering for no fault of our's. The

government authorities claim there were issues with the foundation of the structure after the

building collapsed. Why did the planning authority (CMDA) that provided approval for the twin

towers failed to monitor its constructions?"she asked.



Link https://realty.economictimes.indiatimes.com/news/residential/chennai-three-years-on-moulivakkam-twin-towers-buyers-still-await-refund/71891570

The homebuyers have filed a case with the National Consumer Disputes Redressal

Commission seeking refund of their investments even as bankers have filed cases against those

who availed home loan. "There is no support from the government to redress our grievances,"

Ratna said.

Meanwhile, the developer is attempting to sell the property to pay off buyers. M Manohar,

managing director of Prime Sristi Housing Private Limited which built the twin towers, could

not be reached for comments.

Odisha: Housing clusters for teachers in Malkangiri district

The place of building the cluster will be decided by the district administration

The state government will create housing clusters for teachers posted in remote areas

of Malkangiri district. School and mass education minister Samir Ranjan Dash said this here on

Saturday.

Dash had visited the district on Thursday and reviewed the works of his department. "During

my visit to Malkangiri, I was impressed by the interest of the people of the district towards

education. Problem of the area is lack of local teachers there. Teachers from outside have been

posted there. They take three hours to reach their school and another three hours to return home.

Getting rented house in the remote area is very difficult. So I suggested the district collector to

prepare a plan to set up housing clusters to help the teachers save time," he added.

Dash said one cluster will have around 10 quarters, so that at least 10 teachers can stay there.

The place of building the cluster will be decided by the district administration, he added.

"It will be my priority to start this project in the area. Chief minister Naveen Patnaik has

announced Rs 100 crore package for the development of Swabhiman Anchal of the district. We

can use fund from the Rs 10 crore of the package earmarked for education. We will start this

very soon," said the minister.

Dash said this project will help retain teachers in remote areas. The teachers will not face any

problem to stay in Swabhiman Anchal. He will take up the issue with the chief minister.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/odisha-housing-clusters-for-teachers-in-remote-malkangiri-district/71895218

Andhra Pradesh to mandate ECBC implementation in buildings

with over 1,000 sq ft built-up area

Energy secretary Nagulapalli Srikant said Andhra Pradesh is committed to implementing

ECBC and a draft GO is also being prepared.

The state government is set to make implementation of Energy Conservation Building

Code (ECBC) mandatory in all commercial establishments and in buildings with more than

1,000 square metre built-up area.

It has prepared a draft government order and sent it for the comments of Directorate of Country

and Town Planning (DTCP). The GO is likely to come into force soon.

In a review meeting over implementation of ECBC with state officials, the director general

of Bureau of Energy Efficiency (BEE), Abhay Bhakre expressed concern over delay in its

implementation in commercial buildings. He appealed to municipal administration and urban

development department officials to take immediate steps to make implementation of ECBC-

2017 mandatory while issuing building permissions.

Energy secretary Nagulapalli Srikant said Andhra Pradesh is committed to implementing ECBC

and a draft GO is also being prepared. He said although a clause was incorporated in

development permission management system (DPMS) by municipal administration department

in October 2018, making it mandatory in DPMS software is still pending. He observed that once

the GO is cleared, it will be made mandatory and all building permissions will be cleared only

after ECBC compliance.

Srikant noted that Andhra Pradesh Electricity Regulatory Commission (APERC) estimated that

the building sector is consuming 3,117 million units of power every year. According to a recent

study conducted in the state by Administrative Staff College of India (ASCI), out of the 3,117



Link https://realty.economictimes.indiatimes.com/news/regulatory/andhra-pradesh-to-mandate-ecbc-implementation-in-buildings-with-over-1000-sq-ft-built-up-area/71892447

million units, 888 million units of power can be saved every year with the implementation of

ECBC, that translates into saving Rs 538 crore.

According to BEE, 30% of the total energy consumed can be saved by adopting ECBC. The

BEE has set a target to save 300 billion units by 2030 across the country. This would translate

into Rs 35,000 crore savings and reduction of 250 million tonnes of carbon dioxide released

into environment.

Bombay HC directs two Chittaranjan Nagar residents to vacate

premises

The HC made it clear they could not without valid reason obstruct redevelopment of

Chittaranjan Nagar Riddhi Siddhi Sahakari Griha Nirman Sanstha Maryadit by

Saptrishi Homes at Vidyavihar.

In an order that paves the way for an almost decade-old redevelopment plan to take off,

the Bombay high court directed two members of a housing society to vacate their premises in

four weeks. The HC held their argument that there was no general body meeting resolution to

appoint the builder as too “hollow” a ground to resist the project.

The HC made it clear they could not without valid reason obstruct redevelopment

of Chittaranjan Nagar Riddhi Siddhi Sahakari Griha Nirman Sanstha Maryadit by Saptrishi

Homes at Vidyavihar.

Pulkit Sharma and Sameer Chitnis, lawyers for the builder who had approached the HC for

interim relief, argued that the two residents be asked to vacate the premises since six others had

done so in June 2019.

The residents‟ lawyers, Vinod Bhadang and Suyash Gadre, argued the two residents were “kept

in the dark about the redevelopment agreement” and that there was “no general body

resolution” and, hence, the plan was “illegal and void”.

Justice G S Kulkarni, in his order on October 15 which was made available on October 25,

observed this was “a usual story of two minority members opposing redevelopment of a

society‟s premises.” The HC also noted their opposition to the lack of a GB resolution “is too

late in time.”



Link https://realty.economictimes.indiatimes.com/news/regulatory/bombay-hc-directs-two-chittaranjan-nagar-residents-to-vacate-premises/71891213

The society and builder had entered into an agreement in May 2015. The HC noted the process

to undertake redevelopment was initiated in 2010. The society, comprising eight members, had

passed a resolution at its GBM in March 2010. The HC order also noted one of the two

opposing residents had “herself proposed the appointment of a developer.”

The HC observed a minority section of members cannot oppose the majority will of the society

to undertake redevelopment.

“To my mind, the contentions as urged on behalf of—the two members—appear to be merely to

oppose these proceedings without an inch of reality in their contentions. If these respondents

had any genuine grievance against the society entering into a development agreement in

question, then as members of the society…they would have earnestly preferred appropriate

proceedings…” which admittedly they haven‟t initiated, noted Justice Kulkarni.

He added, “From the tenor of the arguments…it appears to a judicial mind that these are proxy

contentions being pursued by--the two members-- at the behest of someone…the contentions

appear to be that of a rival developer saying all this through respondents...”

________________________________________________________________

Uttar Pradesh government refuses to bail out UPPCL over DHFL

fiasco

“It is the responsibility of the trust and its chairman to ensure that the money of power

sector employees is taken care of properly,” UP energy minister Shrikant Sharma told

TOI.

The UP government on Monday said it had nothing to do with the money from the provident

fund of UP Power Corporation Limited (UPPCL) employees that was invested by the UP Power

Employees‟ Trust in the tainted Dewan Housing and Finance Corporation Limited (DHFL).

“It is the responsibility of the trust and its chairman to ensure that the money of power sector

employees is taken care of properly,” UP energy minister Shrikant Sharma told TOI. The

minister‟s statement came on a day when UPPCL chairman Alok Kumar, who also heads the

trust, proposed at an emergency meeting of the UPPCL board of directors that the corporation

meet the shortfall in paying the PF and gratuity to the retiring employees.

Over Rs 4,000 crore has been invested by the trust in DHFL. While less than 50% of this

amount has been recovered, a whopping Rs 2,268 crore is still with DHFL.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/uttar-pradesh-government-refuses-to-bail-out-uppcl-over-dhfl-fiasco/71915335

Can Fin Homes' profit rises 20% to Rs 97.6 crore in Q2 FY20

The company's had posted Rs 81.55 crore net profit in July-September quarter previous

fiscal.

Can Fin Homes on Monday reported 20 per cent rise in net profit to Rs 97.62 crore for the

second quarter ended September 30.

The company's had posted Rs 81.55 crore net profit in July-September quarter previous fiscal.

Total income from operations rose to Rs 500.67 crore during the second quarter, from Rs

421.83 crore in the same period of 2018-19, Can Fin Homes said in a regulatory filing.

The company's main business is to provide loans for purchase and construction of residential

houses.

Can Fin Homes at its annual general meeting held on July 17, 2019 has approved the payment

of dividend towards financial year ended March 2019 of Rs 2 per equity share, it said.

The promoter of Can Fin Homes is Canara Bank, which holds 29.99 per cent stake in the

company, as on September 30, 2019.

Stock of Can Fin Homes jumped 4.28 per cent on the BSE to Rs 422.85.

_______________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/allied-industries/can-fin-homes-profit-rises-20-to-rs-97-6-crore-in-q2-fy20/71895868

NRI buyer allege cheating by Nagpur-based Empress City in flat

sale

A native of Balaghat, Rathour lodged a complaint with Ganeshpeth police station on

October 11, and forwarded it to the PMO on October 20.

Bahrain-based NRI Ashis Rathour has lodged a complaint with the Prime Minister‟s Office

(PMO) and Ganeshpeth police station, alleging he was cheated by developers of Empress City.

Police have started investigation. The developer has denied all allegations and assured to

resolve all issues soon.

A native of Balaghat, Rathour lodged a complaint with Ganeshpeth police station on October

11, and forwarded it to the PMO on October 20. “I planned to settle in Nagpur after retirement.

I came to know about Empress City and booked a flat costing Rs 54.40 lakh. I paid 25% of the

amount and received allotment letter on August 26, 2010,” said Rathour.

The allotment letter was issued by „Reward Real Estate Co Ltd‟, and not actual developer KSL

and Industries Ltd. “I was assured possession in two years. After regular follow-up, I was asked

to pay up to 85% of total flat cost, which I did in 2017 and 2018. I was supposed to pay

remaining amount after getting possession and sale deed. I was called for agreement to sale in

July,” said Rathour.

He even stayed in Nagpur for 15 days and was supposed to return on July 23. However, the

agreement to sale was delayed for one or the other reason. “The developer knew I was to return

on July 23, so they called me on that day. They did not allow me to read the document before

registering it at the registrar‟s office. They assured me the flat, area, cost, sanctioned plan etc



Link https://realty.economictimes.indiatimes.com/news/regulatory/nri-buyer-allege-cheating-by-nagpur-based-empress-city-in-flat-sale/71884527

were as per allotment letter. I signed the document and took a copy and flew back. After

reaching, I read the agreement to sale and realized I was cheated,” he said.

Rathour had been promised flat number DZ 308 in Dreamz Wing as per allotment letter

from Reward Real Estate Co Ltd. But the agreement to sale mentions different flat (no. 304)

and name of seller was also changed to Kaushal Logistics Pvt Ltd. The sanctioned plan attached

with the allotment letter, and the one with the agreement to sale were also totally different.

“I was shocked to see these changes. The developer assured to revise the agreement whenever I

visited Nagpur. I came to Nagpur in October but the developer failed to give me sanctioned plan

and other details. They cheated me and I had no option but to lodge complaints,” he said.

PI Shivram Kumbhre said he has accepted the complaint and started investigation. “We sent

letters to registration department and some more places seeking information. It seems to be a

civil matter and related to RERA. But we are investigating and will take necessary action,” he

said.

Pravin Tayal of Empress City said the complaint lodged by Rathour was totally wrong and all

issues will be resolved soon. “Rathour is bargaining for a bigger flat, which is under

consideration. We executed agreement to sale with him and will give possession of flat. Rathour

is yet to pay entire amount. The scheme in which Rathour was given flat is sanctioned by

competent authority,” he said.

Empress City Flat Owners Association had filed a petition before National Consumer Disputes

Redressal Commission (NCDRC) over various issues. The case is pending.

NMC too had issued notice to the developer for unauthorized constructions in Empress City and

mall. Property tax and water bills worth crores are overdue. Bank of India too had marked the

mall for auction over non-payment of loan.

________________________________________________________________

5--nov oct--2019credaibengal.in/wp-content/uploads/2019/11/05nov19-cb... · 2020-02-28 · realty...

Documents