March 17, 2021

CREDAI Bengal Daily News Update | 17.03.21

Affordable housing homebuyers not aware of the benefits, says new

survey

The awareness survey, which included over 1,000 affordable housing loan customers, found

that there is a lot of confusion about whether woman’s ownership is mandatory to avail

PMAY benefits, only 48% of the respondents knew that it’s a must for EWS and LIG home

buyers.

Even as affordable housing got a big boost in the Budget 2021 with tax benefits extended until

FY22, nearly half of existing homebuyers in this category are unaware of the Pradhan Mantri

Awas Yojana (PMAY) scheme, according to a survey by BASIC Home Loan, a fintech startup

for automated home loans for middle and low-income households in India.

The awareness survey, which included over 1,000 affordable housing loan customers, found that

there is a lot of confusion about whether woman’s ownership is mandatory to avail PMAY

benefits, only 48% of the respondents knew that it’s a must for EWS and LIG home buyers.

“We thought that there would be low awareness, however, the findings were quite a surprise, in

terms of the percentage of people found completely wanting. The onus lies on lenders, as well

government, to acquaint the masses with the many benefits it provides,” said Atul Monga, CEO

of BASIC Home Loan.

Monga said that the eligible candidates for PMAY should automatically get the benefits, instead

of filling another application with the lender.

According to the survey, only 17% of respondents were found to be aware of Rs 2.67 lakh being

the maximum subsidy amount available under PMAY.

Almost half the respondents think that the maximum loan tenure for PMAY subsidy is 30 years,

which is not the case. While under 37% responded correctly that the maximum loan tenure for

PMAY subsidy is 20 years.

“Government of India has already taken many steps in the right direction, but there are areas of

improvement to transform the sector canvas to a vibrant and delivery-oriented landscape. As part

of the current awareness schemes, Angikaar Campaign was launched to mobilize PMAY (U)

beneficiaries for social behavior change management,” said Ravinder Reddy, partner, public

sector, Grant Thornton Bharat LLP.

Newspaper / Online The Economic Times (Online)

Date March 16, 2021

Link https://economictimes.indiatimes.com/industry/services/property-/-cstruction/affordable-housing-homebuyers-not-aware-of-the-benefits-says-new-survey/articleshow/81531046.cms

Under the Pradhan Mantri Awas Yojana (PMAY), 10 million houses have been sanctioned and

Government of India has committed an amount of more than 24 billion USD for the successful

implementation of this scheme.

“To increase awareness, proper capacity building needs to be carried out not only for

customers/beneficiaries but also for implementing agencies, developers, and contractors. A

portion of project funds should be mandated to establish a help desk to improve financial literacy

of the people and to create awareness about various housing schemes and financing availability

from formal finance sector,” said Ravinder Reddy.

Homebuyers were also asked about the maximum value of a house under the affordable housing

segment in metro and maximum carpet area under PMAY. ____________________________________________________________________________________________

NAREDCO Uttar Pradesh directs their members to submit registry

plan to authority

The association of developers said that the UP government has accepted the proposal to

allow registry of flats on deposit of land dues liability per flat, worked out by the authority

applying simple interest at SBI-MCLR as per Supreme Court Order.

The National Real Estate Development Council (NAREDCO) has urged the developers to start

the registry of flats as the local authority in Noida and Greater Noida has started a drive for the

same.

The association of developers said that the UP government has accepted the proposal to allow

registry of flats on deposit of land dues liability per flat, worked out by the authority applying

simple interest at SBI-MCLR as per Supreme Court Order.

“Supertech Group has also submitted their request letter giving calculations of liability based on

the Supreme Court Order and on knowing further modalities from the authority, action for registry

shall start. We hope that government will accept our proposal so that we can obtain registry

permission by paying dues on per flat basis. It will help government to collect revenue as well as

individual customers to get their registry done,” said R K Arora, Chairman, Supertech Group and

President NAREDCO-UP.

Registry for 50,000 units are pending currently in Noida.

NAREDCO-UP has sent directions to all NAREDCO members including Panchsheel, Ajnara,

Antriksh and Migsun Group.

The Chief Secretary, UP in a meeting with the developers and the CEOs of Noida, Greater Noida

and Yamuna Expressway Authorities had discussed the buyers’ complaints in this regard and as

a solution, the above proposal was accepted in principle.

Noida authority has threatened to take action against real estate developers who have offered

possession to homebuyers without doing the registry.

The authority conducted inspection of 18 housing societies and found people living there for 4-5

years without registry causing revenue loss to the state government.

Now the authority has started special camp in housing societies for the registry of flats.

Newspaper / Online The Economic Times (Online)

Date March 16, 2021

Link https://economictimes.indiatimes.com/industry/services/property-/-cstruction/naredco-uttar-pradesh-directs-their-members-to-submit-registry-plan-to-authority/articleshow/81531259.cms

The authority has also said that instead of paying dues in one go, the builder can pay the dues

during the registry of flats. Noida authority has given three months time to complete the registry. ____________________________________________________________________________________________

Maharashtra: Mediation helps settle over 75% builder-buyer

disputes in last three years

Since 2018, over 75% of the disputes between builders and flat buyers in the state that went

in for mediation were resolved successfully, thereby avoiding time-consuming litigation

before Rera courts.

Since 2018, over 75% of the disputes between builders and flat buyers in the state that went in

for mediation were resolved successfully, thereby avoiding time-consuming litigation

before Rera courts.

Three years ago, Maharashtra became the first state to set up a conciliation committee under the

Real Estate (Regulation and Development) Act (Rera) to settle disputes amicably.

According to data collated by Mumbai-based consumer group Mumbai Grahak Panchayat

(MGP), the success rate was 71% in Mumbai region and as high as 85% in Pune.

Currently, there are 26 conciliation benches under Rera that help stop quarrels from going to Rera

courts. It is entirely voluntary, and the conciliation can only be initiated when the complainant

and builder both willingly agree to it. These conciliation benches started functioning on March

10, 2018, and on its third anniversary on Wednesday, activists said this alternate dispute redressal

has done a splendid job.

“On the very first day in the first sitting, Mumbai conciliation benches settled six out of 16

disputes referred to them and Pune benches settled two out of six disputes,’’ said Shirish

Deshpande, chairman of MGP.

“Although the pandemic prevented physical hearings by conciliation benches, they swiftly moved

over to online conciliation to give relief to aggrieved home buyers,’’ said Ajoy Mehta, chairman

of MahaRera.

Each bench comprises one conciliator from the MGP and one conciliator from builders’

associations such as Naredco, Credai-MCHI.

MGP conciliator Archana Sabnis recounts a case of a complainant residing in the UK who booked

a flat by making payment of Rs 4.5 crore.

“The promoter had promised to give possession by December 2017. The consumer wanted to

visit the site to see the progress of the project, which was refused by the developer. The consumer

came to know that the construction of his tower had not even started. Ultimately, he asked for the

Newspaper / Online ET Realty (Online)

Date March 17, 2021

Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-mediation-helps-settle-over-75-builder-buyer-disputes-in-last-three-years/81543174

refund, which was flatly denied by the builder,’’ she said.

The consumer filed a case before the Rera. Sensing a chance to resolve the dispute, the case was

referred for conciliation.

“We had a virtual conciliation, during which the consumer requested for a refund. He informed

us that he was diagnosed with a grave health condition, with a low survival rate, hence, it would

have been difficult for him to make any further payments towards the flat. He wanted a refund

which he could utilise towards his medical expenses. The promoter flatly refused to give any

refund. On the contrary, he demanded some amount from the consumer towards damages,’’ said

Sabnis.

“Considering the body language and attitude of both the parties, it was a real challenge for us to

solve the case amicably. We were stunned with the attitude of the developer. It was a tricky and

challenging situation because both the parties were facing genuine financial problems. However,

considering the medical condition of the consumer, we both personally requested the developer

to consider the case on humanitarian ground. Ultimately, we could bring them to a settlement,’’

she added.

The developer finally offered three smaller flats instead of the bigger one that the consumer had

booked to cover the payment already advanced to him. The offer was willingly accepted by the

consumer.

________________________________________________________________

Odisha government asks Bhubaneswar civic body to stop collecting

holding tax

With the government’s decision, the Bhubaneswar Municipal Corporation (BMC) is now

restrained to go ahead with collection of holding tax dues from repeat defaulters and first

time defaulters as well.

Coming under ire of smart city residents, the state government on Monday decided to pause

collection of revised rate of holding tax, till the Orissa High Court comes up with its final

judgment on the matter.

With the government’s decision, the Bhubaneswar Municipal Corporation (BMC) is now

restrained to go ahead with collection of holding tax dues from repeat defaulters and first time

defaulters as well.

Housing and urban development minister (H&UD) Pratap Jena announced that the holding tax

collection on the basis of revised rate will be put on hold till the HC judgment. “There was a

petition in the HC opposing the move of the BMC to collect holding tax on the basis on new rates.

The court had given interim order to collect tax on the basis of revised rate, but in that case only

50 per cent of total dues can be collected by the civic body. In view of people’s demand, now the

new rate is put on hold,” Jena told the media.

The holding tax had gone up manifold, by 50 to 500 per cent due to its calculation on the basis of

a revised benchmark valuation of land in the state capital. Holding tax, a major revenue

component of the civic body is calculated on the basis of land value and the building cost. The

BMC said holding tax amount is 17.5 per cent of the land value and building cost taken together

(in case of residential complex).

The BMC calculates 0.5 per cent of land value of a particular area (which varies from locality to

locality) and adds up with the building cost, which is calculated on the basis of Rs 1.35 paise per

sq ft of built up area. “Since the land valuation has increased manifold at different locations of

the city, the final calculation of tax amount automatically goes up. The BMC’s mandate is to

assess (evaluate) the tax on the basis of new benchmark value of land. It has kept the percentage

of holding tax intact,” explained a BMC officer.

The revised holding tax rate came into force from April, 2019. Many residents and owners of

commercial complexes have paid the revised rate in 2019-20 financial year. Because of slow pace

of collection, the BMC had fetched Rs 42 crore in 2019-20 financial year against a target of Rs

60 crore. “This year due to pandemic and people’s reluctance to pay the tax, we have so far been

Newspaper / Online ET Realty (Online)

Date March 16, 2021

Link https://realty.economictimes.indiatimes.com/news/regulatory/odisha-government-asks-bhubaneswar-civic-body-to-stop-collecting-holding-tax/81524371

able to fetch Rs 32 crore,” the officer added.

BMC officials said those, who have paid tax this year according to the new rates, their dues next

year will be adjusted.

The high holding tax rates has culminated in a political slugfest with opposition BJP and Congress

staging protests. On Friday, both the parties had gheraoed the BMC office. On Monday, the

Congress workers were seen laying siege to the BMC office again.

________________________________________________________________

Housing societies in Hyderabad and Secunderabad take up water

meter installation

RWAs are buying water meters from agencies empanelled by the Hyderabad Metropolitan

Water Supply and Sewerage Board (HMWS&SB) for both domestic and non-domestic

consumers.

While SCB is yet to start study on water meters to implement the 20KL free water

scheme, residential welfare associations (RWAs) in twin cities of Hyderabad

and Secunderabad and in the periphery of GHMC are busy in fixing water meters to avail the

scheme.

With only two weeks left till the deadline to fix the automated water meters (March 31), RWAs

are buying water meters from agencies empanelled by the Hyderabad Metropolitan Water Supply

and Sewerage Board (HMWS&SB) for both domestic and non-domestic consumers.

Meanwhile, few RWAs have also approached the water board to clarify problems regarding the

linking of Aadhaar with the consumer account number (CANs). Property owners with two water

connections against their name are facing issues at the time of Aadhaar linkage.

Of nearly 4,300 RWAs, nearly 3,000 RWAs have followed HMWS&SB’s guidelines in fixing

the water meters for the free water scheme. Tnn

________________________________________________________________

Newspaper / Online ET Realty (Online)

Date March 16, 2021

Link https://realty.economictimes.indiatimes.com/news/residential/housing-societies-in-hyderabad-and-secunderabad-take-up-water-meter-installation/81529308

Two agencies bid for Nashik's construction & demolition waste

management project

Earlier, the civic body had floated tenders on four occasions, but it did not receive any

response. But now two private agencies have filed their bids to operate the C&D waste

management project in the city.

After almost two years, the Nashik Municipal Corporation (NMC) has received good response

for its bid to appoint a private agency to collect, transport and recycle construction & demolition

(C&D) waste.

Earlier, the civic body had floated tenders on four occasions, but it did not receive any response.

But now two private agencies have filed their bids to operate the C&D waste management project

in the city.

“Disposing debris from demolition and construction sites is a major issue in the city. It also causes

air pollution. The Centre has also provided Rs 20.5 crore to take various measures for improving

the city’s air quality. We have prepared a blueprint to reduce air pollution, which also includes

the C&D waste project,” S Vanjari, NMC executive engineer (environment), said.

“We had recently floated a tender in this connection and for the first time have received a response

to the bid,” he added.

The civic body will provide land to the contractor where construction and demolition waste would

be recycled. The construction waste, which is not usable or can’t be recycled, will be sent to the

dumping ground as identified by the municipal corporation.The list of dumping grounds in all six

divisions — Nashik East, Nashik West, Nashik Road, Satpur, Cidco and Panchavati — will be

given the contractor for carrying out the work.

________________________________________________________________

Newspaper / Online ET Realty (Online)

Date March 16, 2021

Link https://realty.economictimes.indiatimes.com/news/industry/two-agencies-bid-for-nashiks-construction-demolition-waste-management-project/81524426

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