sept 2019 - credai bengal

18-Sept-2019

CREDAI Bengal Daily News Update | 18.09.19

WEST BENGAL NEWS

Newspaper/Online The Times of India

Date September 18, 2019

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OTHER NEWS

DDA approves transit oriented development policy

After approval, the proposal shall be forwarded to the Ministry of Housing and Urban

Affairs (MoHUA) for its approval and notification.

The DDA on Monday approved its transit-oriented development (TOD) policy which is

focussed on development taking place around a transit corridor.The decision was taken in the

urban body's Authority meeting at Raj Niwas here chaired by Lt Governor Anil Baijal, also

chairman of the DDA.

TOD consists of a variety of high-density, mixed-use, mixed-income buildings, within a short

distance of a rapid public transport network, set in a public realm that encourages more people

to use public transport.

The Authority approved the TOD policy which is focussed on development around or along a

transit node or corridor, and facilitates complete ease of access to that transit facility, thereby

inducing people to walk, cycle and use public transportation over personal modes of transport,

the DDA said in a statement.

After approval, the proposal shall be forwarded to the Ministry of Housing and Urban Affairs

(MoHUA) for its approval and notification.

Benefits of TOD include compact mixed-use, mixed-income developments where residential,

commercial, civic or institutional establishments are located close to each other and allow local

communities to be formed, with vibrant round-the-clock active spaces (like plazas, shared parks

and open spaces, and other facilities) for leisure and recreation.

Through increased Floor Area Ratio (FAR) and density, TOD norms may provide a variety of

housing types for a range of income brackets and demographic types in the city, the DDA said.

To facilitate this, in all TOD integrated schemes, a minimum component of 30 per cent of

overall FAR shall be mandatory for Residential use. EWS FAR of 15 per cent over and above

the proposed FAR will be applicable, he urban body said.

"TOD policy would open up development opportunity to the private sector to bring in

investment into the city building, its growth and revenue, and also help cross-subsidize social

amenities, affordable housing and public transport, using a variety of possible financial

development models," it said.

Newspaper/Online ET Realty (online)


Link https://realty.economictimes.indiatimes.com/news/industry/dda-approves-transit-oriented-development-policy/71176918

Among other decisions, the Authority also approved change of land use from 36.6 hectares in

district centre Narela from commercial to public and semi-public (PSP), officials said.

Out of 36.6 hectares, Indira Gandhi Delhi Technical University for Women (IGDTUW) will be

allotted 20 hectares of land and the remaining land is proposed for colleges or institutions, the

DDA said.

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Bill to evict unauthorised occupants from government

accommodations passed

This is expected to further increase the availability of government residential

accommodations for eligible persons and reduce the waiting period.

The Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2019, which was

passed by the Parliament to facilitate smooth and speedy eviction of unauthorised occupants

from government residential accommodations, came into effect from Monday.

The Gazette notification in this regard has also been issued.

"This would facilitate smooth and speedy eviction of unauthorised occupants from government

residential accommodations and ensure retrieval of these residential accommodations from

unauthorised occupants without requiring elaborate procedures," said an official statement.

This is expected to further increase the availability of government residential accommodations

for eligible persons and reduce the waiting period.

"As per the Amendment Act, the estate officer will issue short show-cause notice of three days

before the eviction of the unauthorized occupant from the government accommodation," the

statement said.

The Public Premises (Eviction of Unauthorised Occupants) Act, 1971 was enacted to provide

for eviction of unauthorised occupants from "public premises" and for certain incidental

matters.

"As per the existing allotment rules, after the end of eligibility as per the terms and conditions

of the licence, the occupants of such residential accommodations become unauthorised

occupants and are to vacate the same," it said.

The Act confers powers upon the estate officers to evict such unauthorised occupants from

"public premises" in a smooth, speedy and time-bound manner. Under the existing provisions,

the eviction proceedings of unauthorised occupants from "public premises" take around five to

seven weeks' time.

"It may take around four more weeks in case the unauthorised occupants file an appeal before

the District Court under the act. However, eviction proceedings take a much longer period than

the timeline prescribed in the act. Sometimes, it takes years to evict the unauthorised occupants,

especially, if the unauthorised occupant approaches higher courts," it added.



Link https://realty.economictimes.indiatimes.com/news/regulatory/bill-to-evict-unauthorised-occupants-from-government-accommodations-passed/71160174

The government provides residential accommodation on a licence basis to its employees,

Members of Parliament and other dignitaries while they are in service or till the term of their

office.

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Indore civic body to approve building plans online

Making it a truly self-service service initiative unlike the previous one, Indore Municipal

Corporation (IMC) officials are gearing up to use new software for automated building

plan approvals.

No need to run from pillar to post, Indoreans can now get building permission by applying

online from the comfort of their drawing rooms.

Making it a truly self-service initiative unlike the previous one, Indore Municipal

Corporation (IMC) officials are gearing up to use new software for automated building plan

approvals.

―The new software would allow citizens to apply for building permission on their own. They

will only have to get map approved by a licenced architect,‖ said OP Goyal, a senior official

with IMC‘s building permission cell adding that the process in previous software was complex

and citizens often required help from expert and had to make rounds of IMC office seeking

assistance.

The previous software — Automated Building Permission Approval System-I — was operated

by a Pune-based firm.

―A new agency has been entrusted to run the new automated building permission system called

ABPAS-II for building plan approvals from October 1,‖ the official said.

State urban administration and development department on Monday launched a training session

in Indore for licenced architects, engineers and civic body‘s building permission cell employees

to teach facets of the new software.

IMC officials said that second version of an automated building permission approval system

(ABPAS) is going to be launched by government, which would do away with manual

intervention in building permission related tasks.

IMC‘s building permission cell on an average gets 6000 applications a month. In past one year,

around 4000 permissions could be issued by civic body.

As many as 44 people including IMC‘s building officers, building inspectors, sub engineers,

building clerks, licence holder architects and engineers participated in the training session,

which would conclude on Tuesday.



Link https://realty.economictimes.indiatimes.com/news/technology/indore-civic-body-to-approve-building-plans-online/71168190

Jaipur urban & housing department amends building laws to boost

real estate

The move aims to provide approval of layout plan with three days that would encourage

the developers and revive the real estate market.

The urban development and housing (UDH) department on Monday amended the integrated

building bylaws after issuing a notification.

The move aims to provide approval of layout plan with three days that would encourage the

developers and revive the real estate market.

Online approval of building layout plans was initiated in many urban local bodies and

development authorities from May 1 this year. As per the existing system, it is mandatory for all

the civic bodies to approve the layout plans within a month. However, it is alleged that the

officials do not clear the maps.

After amendments, the developer will now receive the approval for building plans within three

days. Under the fast-track system, the applicant will have to upload all the required documents

including those stating clear title of the land, no dues etc.

In case the building‘s height is more than 15 metre, developers will have to submit mandatory

permissions such as no objection certificate ‗NoC‘ from fire department and Airports Authority

of India (AAI).

―Once the process is completed, the local body will issue a demand note mentioning the amount

that a developer has to deposit. The approval will be given within three days after depositing the

money,‖ said an official.

The fast track approval system will be optional and developer and investors will have a choice

to opt for offline process.

Explaining the category of investors who can apply for fast-track system, an official added,

―The investors who have purchased a plot of 2,000 square metre in an auction by any urban

body can apply for fast track approval. Similarly, a developer who converted a group housing

scheme (10,000 sq mt) from agriculture to residential can opt for approval. All the hotel, motel

and resort owners can also take advantage of this system,‖ he said.

To ensure that developers are adhering to the approved layout plan, the UDH has also made a

provision. ―After the construction of a building reaches plinth level, the developers have to



Link https://realty.economictimes.indiatimes.com/news/industry/jaipur-urban-housing-department-amends-building-laws-to-boost-real-estate/71165618

apply for certification from the department officials. The report of the construction will also be

uploaded online,‖ said an official.

The UDH department has decided to provide houses to destitute and landless single women in

every scheme. The department will reserve 10% houses in schemes under this category. Also,

following the centre, the state housing department also raised the annual income bar for EWS,

LIG, MIG and HIG categories.

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Telangana government to link PMAY-U under 2BHK scheme

Out of the unit cost of Rs 5.30 lakh, an amount of Rs 1.50 lakh will be sourced from funds

to be received from the government of India under PMAY-U and the balance amount of

Rs 3.80 lakh from the state government budget.

The Telangana government has decided to dovetail the Pradhan Mantri Awas Yojana-Urban

(PMAY-U) under the 2BHK scheme with the two-bedroom scheme of the state government.

Out of the unit cost of Rs 5.30 lakh, an amount of Rs 1.50 lakh will be sourced from funds to be

received from the government of India under PMAY-U and the balance amount of Rs 3.80 lakh

from the state government budget.

―The government is looking at synergy in the housing scheme,‖ officials said. The budget

outcome for the housing department for 2019-20 introduced in the assembly on Monday said

the government was targeting to complete 1,54,308 houses with a budget provision of Rs

108.18 crore.

In the current financial year, it has been decided to complete 20,213 houses, including those

sanctioned earlier under the two-bedroom housing programme in rural areas, at a budget

provision of Rs 100 crore. The state will raise loans from Hudco and other financial institutions

to meet the expenditure.

AIMIM legislator Syed Ahmed Pasha said that though one lakh houses were earmarked under

the double-bedroom scheme in GHMC area, only 128 houses had been completed.

He urged the government to see that GHMC area gets the required number of units. TRS

member Balka Suman said that CM K Chandrasekhar Rao is looking at a permanent solution to

those who lack houses.

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Link https://realty.economictimes.indiatimes.com/news/residential/telangana-government-to-link-pmay-u-under-2bhk-scheme/71160107

DHFL's resolution plan hits roadblock

The process has been further complicated as certain bondholders have also initiated a

process to take DHFL to bankruptcy court, the custodian added.

A plan to rescue India's debt-laden Dewan Housing Finance Corporation Ltd (DHFL) has hit a

major roadblock as only a small segment of bondholders has agreed to be on board the proposed

resolution, according to a custodian of DHFL bonds.

The process has been further complicated as certain bondholders have also initiated a process to

take DHFL to bankruptcy court, the custodian added.

Out of the 87,000 debenture holders who had been asked to be party to the resolution plan being

deliberated upon by banks, only 24,400 debenture holders, or less than 30%, had responded

before the due date earlier this month.

The banks have signed an inter-creditor agreement (ICA) to come up with a plan to restructure

nearly 1 trillion rupees ($14 billion) of DHFL's debt. They had been trying to get bondholders

on board as well for the plan to succeed.

Under new central bank rules for resolving bad debts, it is mandatory for 75% of lenders by

value and 60% by number to sign the ICA to execute a revival plan which in DHFL's case can

be achieved only with the support of bondholders.

Banks, with an exposure of just about 360 billion rupees, will need support from insurance

companies, pension funds and other institutional investors to approve the resolution plan, the

deadline for which ends on Sept. 25.

DHFL, one of the largest housing finance companies in India ran into trouble last year soon

after the collapse of IL&FS, a shadow banking behemoth. Troubles at both lenders have

sparked an acute liquidity crunch which may worsen.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfls-resolution-plan-hits-roadblock/71176881

Pending home loan? You can still sell your flat!

One can sell a property after getting the consent or in-principal approval from the lender.

In 2017, Dinesh Sharma bought a 2BHK flat. He decided to sell his property in 2019 as he

wanted to buy a 3BHK unit in a project near his office. He has an outstanding home loan on his

current property and the original property papers are with the bank.

Can Sharma sell this property while the home loan is still pending?

Yes, a person who has availed a home loan on a property can transact the said property.

However, the sale transaction stipulates obtaining an NOC from the lender or an in-principle

approval from the lender for such sale transaction.

How to sell when loan is outstanding?

One can sell a property after getting the consent or in-principal approval from the lender. ―This

has to be done in a manner that part of the sale consideration will be paid directly to the lender

or lending bank and the remaining balance (if any) shall go to the seller/current owner.

Upon receipt of the total loan consideration, the lender will release the original title deed of the

property, deposited with the lending bank at the time of disbursement of the loan, to the

seller/current owner. Generally, release of original title deed by the lender/lending bank,

registration of the sale deed and discharge of the sale consideration takes place simultaneously,‖

explains Niraj Kumar, partner, DSK Legal.

What should a buyer/seller check?

One buys a mortgaged property if he is getting a better deal in terms of price or if he likes the

location or if he is getting a fully-furnished flat at no extra cost.

―It is advisable that the buyer (an individual or a legal entity) should check the original title

documents of the property, the mutation records, encumbrance certificate and do litigation

search on the property to verify whether the possession is in favour of the current owner,‖

explains Kumar.

Kumar further adds ―The seller should also look into documents that verify the capability of a

buyer to transact the property and availability as well as source of funds being used for the

purchase of the property.‖

Under construction property



Link https://realty.economictimes.indiatimes.com/news/residential/pending-home-loan-you-can-still-sell-your-flat/71166149

When someone buys an under construction property, he has to pay a booking amount to the

builder and then apply for a home loan. The bank assesses the documents on the basis of

income and repayment capacity of the customer and then sanctions the loan. Once the

registration of a property is complete, the original papers are submitted in the bank and only

after the final payment of the home loan are these released and handed over to the property

owner.

One can sell a property only in two cases while the home loan is pending - 1. He receives

consideration from the prospective buyer and then pays off the dues to the bank. After obtaining

the original property papers from the bank he completes the sale with the buyer. 2. He transfers

the pending loan to the new buyer, after getting what he has already paid and any extra amount

as per his deal with the buyer. However, the bank will do its due diligence before approving this

transfer. The bank will check the income of the new buyer and do the complete KYC before

approving it.

―One can sell his property on which loan is pending but it is important that you clear your

pending dues with the bank. After you have paid back fully, you can get your original property

documents and sell your property. Simultaneously, the current owner can negotiate with the

buyer and bank and clear the dues to continue the sale,‖ says AK Bansal, former executive

director, Indian Overseas Bank.

Consider Tax Liability

Apart from considering the property specifications, one of the most important factors to

consider is the tax liability. Before you sell a property you need to calculate your tax liability as

well.

Nand Kishore, Partner – DSK Legal, suggests, ―The tax liability for selling any property gives

rise to capital gains tax, which could be either short term or long-term gain under the Income

Tax Act 1961. However, the tax impact can be mitigated if the seller utilises the capital gains

for purchasing another residential property within two years or construct a house within three

years from the date of sale.

If the seller is unable to utilise the entire amount within the last date for filing returns, then such

unutilised amount should be deposited with a specified bank account. The said unutilised

amount can be used only to purchase a residential house or for the construction of a house.‖

You must look into various factors before selling your property on which a home loan is

pending.

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UP-RERA identifies over 40 realtors duping home buyers

According to officials, they had received 17 complaints wherein the promoters provided

fake registration numbers of UPRERA to gullible homebuyers.

Planning to buy a house? Cross check every document to be doubly sure as Uttar Pradesh Real

Estate Regulatory Authority (UPRERA) has identified 43 private builders who were duping

homebuyers in the city.

According to officials, they had received 17 complaints wherein the promoters provided fake

registration numbers of UPRERA to gullible homebuyers.

Investigations found there were 43 such builders, who were constructing housing projects in

prominent areas of the stat capital like Gomtinagar Extension, Jankipuram Extension, Kanpur

Road, Matiyari and Sitapur Road.

UPRERA secretary, Abrar Ahmed, said, ―We have found 43 projects, which are not registered

with us, but builders printed fake registration numbers in their pamphlets and on websites. We

are identifying more such housing projects and will lodge FIRs against them soon.‖

According to UPRERA norms, every builder must get the project map approved from LDA and

take a no-objection certificate (NOC) from the fire department.

Builders also have to take nod of Lesa. Thereafter, the promoter has to submit all the documents

to the regulatory authority, which verifies them before registering the project and issues a

registration number to the builder.

However, many private builders do not take permission from the authority as they have to

submit the progress report every three months.

If the progress is slower than the time-limit given by the promoters, they are liable to a penalty,

officials said.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-identifies-over-40-realtors-duping-home-buyers/71176899

Maharashtra government ends ownership of ULC surplus lands

The decision has been taken as per orders of Supreme Court and recommendation of two-

member committee of BN Shreekrishna and BN Makhija.

The state government has ended its ownership of land declared surplus under the Urban Land

Ceiling (ULC) Act. This will come as a major relief for owners of lands, plots and tenements

that have come up on such surplus land.

The state‘s urban development department on Monday issued a notification directing collectors

and competent authority of ULC departments of all districts in the state to delete the name of

state government from ownership documents of surplus land and replace it with ―surplus area

under ULC section 20‖.

The decision has been taken as per orders of Supreme Court and recommendation of two-

member committee of BN Shreekrishna and BN Makhija.

Under ULC Act, the government used to declare surplus land as government owned. Under

Talegaon Dabhade Scheme, the government used to allot surplus land back to owners for

developing residential, industrial schemes etc with some conditions.

A certain percentage of land, varying from 10-20%, was to come under the possession of

government. The remaining area was to be in the name of land owners, who were supposed to

transfer ownership to owners of plots or tenements. But the government registered its name in

the ownership records on such surplus lands.

The government is also likely to exempt owners of lands from developing approved schemes

under Talegaon Dabhade Scheme, and handing over certain share to it by taking premium.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-government-ends-ownership-of-ulc-surplus-lands/71164174

Onus on residents to prove deficiency in service: Consumer forum

Meanwhile, advocate AD Benny, an activist, said that such a case will not stand in

consumer forum if residents were willing to take a risk, by purchasing the flat, after

knowing that the matter was a sub judice.

Consumer forum officials and consumer rights activists said that Maradu flat residents still have

the option to approach the forum if they feel that the builders violated their rights as consumers.

They said that residents can file a complaint stating that the builder is responsible for the

deficiency in the promised service and have engaged in unfair trade practices against the law if

they can prove that they were unaware of the legal hiccups at the time of flat purchase and that

the builders did not disclose details of the case.

―In this case, flat owners are consumers who paid a huge amount to builders in return for the

flats they sold. Hence, consumer protection laws are applicable. Consumers can take advantage

of the provision under Section 12 (1) (b) of Consumer Protection Act, 1986, which allows a

voluntary consumer association (VCA) to file a case on behalf of one or more consumers

against the builder. If they could prove their claims, compensation can be availed from the

builders. Though many owners claimed that they were unaware of the CRZ violation case in

Supreme Court, none of them have approached us,‖ said consumer forum President Cherian K

Kuriakose.

Meanwhile, advocate AD Benny, an activist, said that such a case will not stand in consumer

forum if residents were willing to take a risk, by purchasing the flat, after knowing that the

matter was a sub judice.

―Consumers are bound to reasonably examine products or services before purchase. Builders

can easily challenge the claim of flat owners that they were oblivious to the legal issues,‖ he

said.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/onus-on-residents-to-prove-deficiency-in-service-consumer-forum/71165957

Sunteck Realty, Transcon ink development pact for seven-acre plot

in Mumbai's Andheri

While approvals and clearances will be Transcon Developers’ responsibility, Sunteck

Realty will handle construction, execution, sales and marketing of the project.

Realty developer Sunteck Realty has entered into an alliance with Transcon Developers to

jointly develop a nearly 7-acre land parcel Off New Link Road close to Lokhandwala Complex

in Mumbai‘s Andheri suburb.

As per the joint development agreement (JDA) terms, Sunteck Realty and Transcon Developers

will be sharing the project‘s revenue, estimated to be around Rs 2,500 crore to Rs 3,000 crore

based on the ongoing property rates in the vicinity, in 54% and 46% proportion, respectively.

The plot has total development potential of around 1.1 million sq ft and both the developers are

planning to build a mixed-use project including three residential towers and some part of this as

commercial and retail component. The entire development is expected to be completed over the

next 4-5 years.

―During a time of consolidation in the industry, this acquisition gives us a significant edge by

expanding our portfolio and footprint in the Mumbai Metropolitan Region (MMR). This project

will further strengthen the cash flow and balance sheet of the company,‖ said Kamal Khetan,

CMD, Sunteck Realty while confirming the transaction.

While approvals and clearances will be Transcon Developers‘ responsibility, Sunteck Realty

will handle construction, execution, sales and marketing of the project.

The project is located between the two major connectivity nodes of New link Road and Veera

Desai Road and has proximity to localities like Versova and Juhu.

―Transcon has a large master development portfolio, where we partner with credible branded

developers for our land bank. Our first phase here, ‗Transcon Triumph‘ is a boutique luxury

project that has attracted many celebrity buyers and is close to getting its Occupation

Certificate. For the second phase, we are working on a partnership with Sunteck,‖ said Kirti

Kedia, CMD, Transcon Developers.

Transcon is already developing a 38-storey premium residential tower adjacent to the said plot

and the project, given its location has already attracted high-profile celebrities as its

homebuyers. However, this nearly completed residential tower will not be part of the new joint

development agreement between both the developers. Sunteck is planning to offer configuration



Link https://realty.economictimes.indiatimes.com/news/industry/sunteck-realty-transcon-ink-development-pact-for-seven-acre-plot-in-mumbais-andheri/71170707

of 3-bedrooms and more priced above Rs 3 crore at this proposed new project.

Transcon is also jointly developing projects with Rustomjee Group at Thane and Sheth Creators

at Malad.

Policy level changes in recent years, including the implementation of Real Estate (Regulation &

Development) Act, 2016, the Goods & Services Tax India and demonetisation have resulted in

consolidation in the real estate sector. Several developers across markets are now looking for

stronger players to associate with through joint developments, joint ventures or even exiting a

few projects completely.

Earlier, developers preferred to invest in the creation of a land bank and sought low-cost land

parcels in upcoming areas for later development. With the evolving operational environment

under the RERA and GST regimes, developers have been relooking at the business model.

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sept 2019 - credai bengal

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