10-July-2019

CREDAI Bengal Daily News Update | 10.07.19

Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/financial- creditor-status-given-to-protect-buyers-interest-centre-to-sc/70151622

Financial creditor status given to protect buyers’ interest: Centre to SC

The real estate companies have challenged validity of section 5(8)(f) of the Insolvency and Bankruptcy Code 2016 which ensures inclusion of home buyers as financial creditors under the code.

Backing the homebuyersin their fight against builders which duped them and facing insolvency proceedings, the Centre on Tuesday told the Supreme Court that there was no illegality in amendment brought by it in Insolvency and Bankruptcy Code(IBC) to give them a say in the proceedings by classifying them as financial creditors like banks.

Responding to a batch of more than 140 petitions filed by different real estate companies challenging constitutional validity of the amendment in IBC, the Centre filed its affidavit in the apex court and said that the law was amended to protect the interest of lakhs of home buyers who had invested their hard earned money to purchase flats but were cheated by the companies. It said that amendment was brought after the apex court itself had in 2017 expressed concern over the plight of homebuyers and had said that they should be represented in the Committee of Creditors under IBC.

The real estate companies have challenged validity of section 5(8)(f) of the Insolvency and Bankruptcy Code 2016 which ensures inclusion of home buyers as financial creditors under the code. The Centre, however, said that amendment was brought to insert an explanation to the definition of financial debt to clear the doubt on inclusion of homebuyers within the ambit of financial creditors.

“It means that homebuyers and other classed of financial creditors who have entered into purchase agreements having the commercial effect of borrowing were already covered under the code as it stood before the amendment. The explanation was inserted under Section 5(8)(f), providing that the allottees under the real estate project are considered as financial creditors, was only for the purpose of abundant clarity,” the affidavit said.

Countering the stand of companies that homebuyers should not be part of the proceedings under IBC as they can raise grievances before consumer courts and the authority under Real Estate (Regulation and Development) Act, the Centre providing alternate remedy to them under a separate law is not violating of any constitutional provisions and sought dismissal of all the petitions filed by the companies."The amendment is only aimed at real estate developers who default in payment of financial debt owed to financial creditor, be it home buyers of other financial creditors. The amendment has no effect of driving solvent and healthy real estate developers to insolvency,"it said.

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Opposing the plea of companies, the homebuyers also filed their reply and sought dismissal of the petitions.

“Objective of the instant legislation was never to liquidate the company but to restructure the company and come up with a resolution plan correct the default committed by the company. It is pertinent to mention here that home buyers being the highest stakeholder in the project and their interest needs to be safeguarded as the same is of paramount importance,”advocate Aditya Parolia, who is representing a batch of homebuyers, said in his reply. ______

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/jai-corp-claims- rs-510-crore-from-everest-group-in-a-public-notice/70151579

Jai Corp claims Rs 510 crore from Everest group in a public notice

The payments were to be made by June 7, 2019 but did not take place, as per the public notice, issued by Urban Infrastructure Venture Capital Fund and Urban Infrastructure Real Estate Fund.

Two entities linked to Jai Corp, promoted by Anand Jain of Reliance Industries, have claimed Rs 510 crore from the promoters of the city-based realty developer Everest Group for their alleged failure in developing a project in the megapolis.

The Jai Corp entities came out with a public statement in the newspapers Tuesday detailing how projects went into arbitration and claimed that Everest group promoters-- Kishor Shah, Vimal Shah and Nainesh Shah--are yet to pay the sums awarded to them by an arbitration tribunal earlier this year.

The payments were to be made by June 7, 2019 but did not take place, as per the public notice, issued by Urban Infrastructure Venture Capital Fund and Urban Infrastructure Real Estate Fund.

The public notice said first instance involves a payment of Rs 275 crore with regard to the development of the erstwhile Bradbury Mills Property at Mahalaxmi in central Mumbai, where a panel consisting of a former CJI had on May 4 directed the Everest group promoters to pay Rs 275 crore by June 6.

Development at this project was to be carried out jointly by Vengas Realtors, a special purpose vehicle created by the Everest group and Jai Corp entities, and Everest Fincap which is now known as Money Magnum Nest.

Similarly, in respect of another investment with the Everest group promoters, an arbitral panel comprising two retired Supreme Court judges and a retired CJI passed an award to pay Rs 235 crore by June 26, it said.

"Total amount payable is over Rs 510 crore," the notice said and warned that Jai Corp entities will begin appropriate legal proceedings against the Everest group promoters if the money is not paid.

Jai Corp scrips closed flat on at Rs 99.60 on the BSE.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/allied-industries/vatika- group-repays-rs-500-crore-dues/70139543

Vatika group repays Rs 500 crore dues

Of the total repayment, the company has repaid HDFC’s debt of over Rs 80 crore while Indiabulls Housing Finance has received nearly Rs 420 crore for its respective project-level debt exposure.

Realty developer Vatika Group has repaid debt worth Rs 500 crore to non-banking finance companies Housing Development Finance Corporation (HDFC) and Indiabulls Housing Finance.

Of the total repayment, the company has repaid HDFC‟s debt of over Rs 80 crore, while Indiabulls Housing Finance has received nearly Rs 420 crore for its respective project-level debt exposure. Vatika had raised this debt from HDFC and Indiabulls Housing Finance in a phased manner since 2013.

The debt repayment has been financed through a combination of monetization of its land parcels and commercial assets.

In addition to sale of residential apartments at its projects, the company has monetised two of its land parcels, including one spread over 22 acre and the other 15 acre in Gurugram. Vatika has also monetised its commercial assets by availing Lease Rental Discounting (LRD) to raise the funds for this debt repayment.

“We are looking to reduce our debt by nearly Rs 750 crore to Rs 1,000 crore over the next 8-9 months without compromising on our focus on developing integrated townships, commercial and residential projects,” Anirban Mukhopadhyay, CFO, Vatika Ltd, told ET.

Apart from selling residential apartments and leasing commercial spaces, the company is looking to monetize more land parcels and availing lease rental discounting. It has leased over 2.1 million sq ft of commercial space and has sold 525 residential units over the past couple of quarters.

“With recent changes in the affordable housing policies, we are poised to monetize and develop projects effectively with our land bank of nearly 300 acres in New Gurgaon,” he said, adding the company is in talks with a private equity firm to form an alliance for an affordable housing project on part of its 225 acre land parcel in New Gurgaon.

ET‟s separate email queries to HDFC and Indiabulls Housing Finance remained unanswered till the time of going to press.

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Vatika Group had raised private equity capital worth Rs 300 crore from Goldman Sachs in 2015. This investment was made in Vatika Hotels and the company regained 100% equity stake through an exit provided to Goldman Sachs in 2017.

In 2007, the Vatika Group had raised Rs 800 crore in the form of equity at the holding company level. Goldman Sachs, the largest investor in that round along with Baer Capital Partners, had invested Rs 600 crore in the group. Wachovia Bank, which is now Wells Fargo, had put in Rs 200 crore in that investment round. All these investors have completely exited from the company.

Singapore‟s sovereign fund GIC had invested in the Vatika Group projects in 2014 and still remains invested.

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/nclat-reserves- order-on-jaypee-infra-land-mortgaged-with-jals-lenders/70151539

NCLAT reserves order on Jaypee Infra land mortgaged with JAL's lenders

The appellate tribunal directed all the banks to file their written submissions by Friday over their claims.

The National Company Law Appellate Tribunal (NCLAT) on Tuesday reserved its order over the issue of Jaypee Infratech's land mortgaged by Jaiprakash Associates Ltd (JAL) to its lenders. A two- member NCLAT bench headed by Chairman Justice S J Mukhopadhaya also reserved its order over the plea of leading lenders to include them in the Committee of Creditors (CoC) of the Jaypee Infratech, which is presently going through insolvency resolution.

The appellate tribunal directed all the banks to file their written submissions by Friday over their claims.

"Heard the learned counsel appearing on behalf of the RP and other Respondents. Hearing concluded. Judgment reserved. Parties may file their short written submissions, not more than 3 pages, by July 12, 2019," said NCLAT.

The lenders include Axis Bank, Standard Chartered Bank, ICICI Bank that had challenged NCLT Allahabad order.

Banks have given loans to Jaiprakash Associates, JP Group's flagship firm against the land bank owned by Jaypee Infratech.

The NCLAT was hearing the appeal over the order of the Allahabad bench of the National Company Law Tribunal (NCLT), which had in May 2018 asked JAL to return nearly 760 acres of land to its subsidiary JaypeeInfratech, declaring the transfer of the land as "fraudulent" and "undervalued".

The NCLT had directed JAL to release and discharge interest created over the land to lenders including ICICI Bank.

However, on May 24, the NCLAT had stayed the order.

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-asks-centre- to-come-out-with-uniform-proposal-for-jaypee-homebuyers/70151612

SC asks Centre to come out with uniform proposal for Jaypee

homebuyers

The apex court, which was hearing a homebuyers matter related to Jaypee Infratech Ltd, said the issue concerns lakhs of flat buyers and the Centre should give a proposal to resolve it.

The Supreme Court on Tuesday asked the Centre to come out with a "uniform" proposal for all cases to resolve the difficulties being faced by lakhs of homebuyers who have not yet got possession of flats despite paying huge amounts of money to real estate builders.

The apex court, which was hearing a homebuyers matter related to Jaypee Infratech Ltd, said the issue concerns lakhs of flat buyers and the Centre should give a proposal to resolve it.

"We want suggestions from the Union of India which could be uniform for all such cases," a bench comprising justices A M Khanwilkar and Dinesh Maheshwari said.

"This issue will be bothering lakhs of homebuyers. Within the IBC (Insolvency and Bankruptcy Code), we cannot do anything. But outside it, you (Centre) can suggest something. We can consider that," the bench told Additional Solicitor General (ASG+) Madhavi Divan, who was appearing for the Centre.

The bench made the observation while hearing a plea which has sought that Jaypee Infratech Ltd (JIL) be not sent into liquidation, although the deadline for the corporate inlpsolvency resolution process is over, as it would cause "irreparable loss" to thousands of home buyers.

The ASG told the court that proper authority to respond to the plea would be the resolution professional or the bank concerned.

"Can some other arrangement be suggested by the Union of India without disturbing the ongoing process?," the bench asked, adding, "We are keen to know whether you have something to suggest".

"Policy issue has to be resolved by the Union of India," the bench said and posted the matter for hearing on July 11.

The apex court had on August 9 last year ordered re-commencement of the resolution process against JIL and barred the firm, its holding company and promoters from participating in the fresh bidding process.

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It had also allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution proceedings (CIRP) against Jaiprakash Associates Ltd (JAL), the holding company of JIL, under the IBC.

It had said there was "no manner of doubt" that JAL and JIL lacked financial capacity and resources to complete unfinished housing projects in which over 21,000 home buyers had not been given the possession of their flats till then.

The fresh plea filed in the top court has sought a direction that an "independent and thorough forensic audit" of JIL should be conducted from the date of its incorporation.

Referring to the apex court's last year order, the plea has said, "The court had made a conscious effort to avoid liquidation of Jaypee Infratech Limited. However, the events as have unfolded subsequent to the passing of the judgment have frustrated the efforts as made by the court."

As per apex court's direction, the 270 days for completion of CIRP have concluded on May 6, it has said.

"Till date only two serious bids have been received by the Committee of Creditors. One bid has been submitted by National Buildings Construction Corporation Limited, whereas the other has been submitted by Suraksha ARC. None of the said bids have been accepted by the Committee of Creditors till date," the plea has said, claiming that "threat" of JIL going into liquidation is "turning into a reality with each passing day".

It said if no resolution plan is accepted till May 6, JIL would "automatically go into liquidation", leaving thousands of home buyers without any remedy.

Seeking forensic audit of JIL, the plea alleged that "diversion of funds in the present case is on an even larger scale than that of projects developed by Amrapali Group of Companies".

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/industry/government-yet- to-take-decision-on-maharera-proposal-to-tweak-rules-for- redevelopment/70151510

Government yet to take decision on MahaRERA proposal to tweak

rules for redevelopment

With the amendment of rules, all re-development projects registered under MahaRERA will have to be completed in a time-bound manner, stated MahaRERA officials.

The state government, in a bid to boost redevelopment of cooperative housing societies in the state, may have brought down the consent required for redevelopment of housing societies from 70% to 51% but it is yet to take a decision on the amendment proposed by MahaRERAto bring rehabilitation and sale components of redevelopment projects under the ambit of the authority.

With the amendment of rules, all re-development projects registered under MahaRERA will have to be completed in a time-bound manner, stated MahaRERA officials.

Earlier, only one phase of such projects was under the purview of the authority. The rules, if amended, will consider any redevelopment project as a „whole‟ as currently under MahaRERA components related to rehabilitation and sale are accounted separately.

“The developers now register only the sale component and those seeking re-development suffer with the project getting delayed,” a MahaRERA official said. The official added that if the proposal was approved, it would bring over 10,000 projects, under the Slum Rehabilitation Authority (SRA) and Maharashtra Housing and Area Development Authority(MHADA), under the ambit of the real estate act and ensure their registration within a specific deadline.

“We are awaiting approval from the chief minister to our amendment proposal,‟‟ added an official.

Nearly 40 per cent of one lakh registered cooperative housing societies in the state are mulling redevelopment. Following the amendment, all these societies will have to be registered as a “whole” project, said officials.

“The amendment will make it easier for housing societies going in for re-development. As all the members of these societies will be treated as allottees, they will be brought on a par with homebuyers,‟‟ said real estate observers.

The Mumbai Grahak Panchayat (MGP), a consumer forum, had written to the chief minister regarding redevelopment of old structures as well as self-redevelopment to be undertaken by members. The MGP activists stated that amendment of Rule 2 (1) will bring all redevelopment projects, with

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rehabilitation component, under RERA and this will help the projects facing indefinite delay. “Projects in Pune, Mumbai and Thane are facing inordinate delay,‟‟ stated the members of the consumer forum.

In a recent case, while hearing a complaint filed by an existing member of a Mumbai-based cooperative housing society against a developer for non-payment of rent and also delaying the project, MahaRERA held that every member of the co-operative housing society was an allottee.

MahaRERA authority had stated that in accordance with section 2(d) of the Real Estate (Regulation and Development) Act 2016, every member of the owner cooperative housing society is an allottee in relation to the said registered real estate project. The purchasers in the said registered real estate to whom apartments have been allotted are also allottees as per the definition in section 2(d) of the act."

Officials stated that by holding the existing member as an allottee, MahaRERA had allowed existing members of co-operative housing society to seek remedies against the developer in case of delay or default in the redevelopment project.

The proposal

Amend Maharashtra Real Estate (Regulation and Development) Rule 2 (1) and ensure registration of real estate projects and agents. If the project is a redevelopment scheme and has rehabilitation and free sale components, then register it as a single project. Under MahaRERA, there will be specific timelines for registration

The complaint

The complainant said that the developer had stopped paying rent as the project was undertaken for redevelopment. The complainant said that the housing society had issued a notice to the developer for terminating the redevelopment agreement, thereby further delaying project completion

The developer informed MahaRERA that he was trying to find a new builder to complete the project. MahaRERA stated the developer has to follow Section 15 of the Act, which states that he cannot assign his majority right in a project to a third party without obtaining written consent of two-third allottees in the project and the written approval of the authority.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/illegal-property- deal-will-fetch-five-years-in-jail-in-gujarat/70142210

Illegal property deal will fetch five years in jail in Gujarat

Acquiring property illegally in a 'disturbed area' will land people behind bars for upto 5 years. The Gujarat Assembly amended the Disturbed Areas Act on Monday to reflect such stringent provisions after receiving complaints from people that the current Act was unable to curb illegal sale or transfer of their properties in such notified areas.

There are 750 areas in Ahmedabad that fall under the Act which bans sale of property by a member of one religious community to a member of another community without the prior approval of the district collector. The Act is also in force in communally sensitive areas of Surat, Vadodara, Godhra, Himmatnagar, Kapadvanj and Bharuch. Congress MLAs opposed the amendment bill tabled by in- charge Revenue minister Bhupendrasinh Chudasama, seeking to know why the government - which has been claiming that Gujarat has been safe for the past 24 years under them - needs a 'disturbed area' Act?

The Bill sought to amend the Gujarat Prohibition of Transfer of Immovable Property and Provision for Protection of Tenants from Eviction from Premises in Disturbed Areas Act, 1991, commonly referred to as the Disturbed Areas Act. As per the new provisions inserted into the present Act by way of the amendment bill, the word "transfer" will include sale, gift, exchange, lease or taking possession of the property by way of power of attorney. To stop people from acquiring properties in disturbed areas through illegal means, the Bill increases imprisonment from six months to minimum 3 and maximum 5 years. Fine amount has been hiked from Rs 10,000 to Rs 1 lakh or 10 per cent of value of property, whichever is higher, depending on seriousness of crime. The Bill also allows the state government to form a Monitoring and Advisory Committee to keep a check on the demographic structure in the disturbed areas.

Explaining the rationale behind the amendment, Chudasama said , "As per earlier provisions, both parties entering into sale or transfer of the property in the disturbed area had to express their consent in an application to the collector. As per the new provision, the collector has to check for likelihood of polarisation, disturbance in demographic equilibrium, or any likelihood of improper clustering of persons of a community if transfer takes place. After carrying out the verification, the collector will make a decision in three months. Further, the Bill also proposes to form an SIT to assist the State in forming opinion before declaring any area to be 'disturbed'. The collector can take the help of SIT if he needs to verify a deal."

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The minister added, "The Collector will have to consider the opinion of municipal commissioner and police commissioner in the city while he will have to take the opinion of the superintendent of police and zonal municipal commissioner in other areas."

The collector can reject the application of transfer after making assessment on these grounds, the Bill says, adding that the aggrieved person can now file an appeal with the state government against the collector's order.

While BJP MLAs, including Ellisbridge MLA Rakesh Shah and Vadodara City MLA Manisha Vakil supported the Bill, Congress MLAs, including Jamalpur-Khadia MLA Imran Khedawala opposed it claiming the Bill was "discriminatory" and targeted people from a specific religion.

Khedawala told "This Act is akin to Article 370 imposed in Jammu and Kashmir, where no outsider can buy property. While the ruling party wants to repeal Article 370 from that state, the same party wants to impose similar rule here. Why this double standard? This Act is a result of a fear that population of one particular community will grow more than others. This Act violates our Constitutional right to buy property anywhere." He asked, "If BJP claims there is peace in Gujarat for past 24 years, why is there a need for 'disturbed' area act? No state in the country has an Act like this. Muslims face many problems like parking, drainage, contaminated water, and old electricity cables. We oppose this Bill as it will deprive us of the right to a better life."

Deputy Leader of Opposition Shailesh Parmar, said, "This shows that the law-and-order situation here is in such poor condition that the State has to come up with such an Act. This Act is breach of human rights. If the government feels that anti-social elements encroach upon properties, they should arrest those elements instead of punishing an entire community."

City areas under the Act As per the latest notification by the authorities, Ahmedabad has around 750 areas under the Disturbed Areas Act. The areas have been decided based on occurrences of riots and violence there. At present, the highest of 167 areas falls under Shahpur police station followed by 109 areas under Madhavpura police station. Others are Kalupur (48), Naroda (48), Ellisbridge (41), Vejalpur (40), Gomtipur (34), Gaekwad Haveli (34), Dariapur (23), Sheherkotda (22), Meghaninagar (17), Bapunagar (16), Isanpur (17), Paldi (16), Ranip (15), Vatva (14), Danilimda (14), Rakhial (14), Khadia (10), Kagadapith (9), Sarkhej (8), Ramol (8), Aslali (7), Navrangpura (6), Amraiwadi (5), Shahibaug (4), and Khokhra (1).

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/i-t-department- attaches-benami-properties-worth-crores/70139423

I-T dept attaches benami properties worth crores in Jaisalmer

As per sources, the benami properties are being purchased here as cement companies will set up in this area. The I-T department has attached 13 such properties at Joga village and two at Parewar village.

Income Tax (I-T) department has attached benami properties worth crore of a reputed cement company in Jaisalmer. The properties are at Joga and Parewar villages. Income tax inspector Chandraveer Singh and income tax officer LD Khatri carried out the action. The area which extends from Sonu village to Joga and Parewar villages has huge reserves of cement-grade limestone . Earlier 234 applications of cement companies came for it but got cancelled later.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/adalat-to- consider-building-plans-in-kochi/70139309

Adalat to consider building plans in Kochi

The corporation has asked applicants to submit file numbers and related documents before the engineering wing at the main office or its zonal offices before Wednesday.

As online system for building plan approval in Kochi corporationhas completely collapsed, it has been decided to hold an adalat for clearing pending files related to building plan approvals. Minister for local self-government department (LSGD) A C Moideen will hold the adalat on July 15 to resolve issues related to applications seeking building permits and occupancy certificates.

The corporation has asked applicants to submit file numbers and related documents before the engineering wing at the main office or its zonal offices before Wednesday.

Mayor Soumini Jain, deputy major, additional chief secretary, people‟s representatives and other officials will attend the adalat along with the minister.

Meanwhile, on July 3, LSGD additional chief secretary had issued an order stating that pending applications related to building permits can be processed manually till the technical issues of building plans approval management system (BPAMS) is resolved. Undersecretary Anil Kumar G has signed the order on behalf of additional chief secretary. However, LSGD has not stipulated any time frame for fixing BPAMS.

The government decision follows complaints over delay in getting building permits. Builders have come out saying that it is creating negative impact on project execution.

At the same time, representatives of Confederation of Real Estate Developers Association of India (Credai) has been insisting on putting in a system which requires minimal human interference for building plan approval. An online system is expected to eliminate corruption.

They want a system where all required documents could be uploaded online and verified. According to them, there should be a mechanism where the software would automatically reject applications which do not meet the stipulated standards.

“Politicians, government officials and builders should be given an opportunity to meet for approving building plans. There has to be an end for corrupt practices. After verifying uploaded documents site inspections can be done on a pre-informed date. Inspections should be completed within the fixed time frame. If variations are found between the facts stated in the documents and ground reality, the department can initiate penal actions against the builder,” said a Credai member.

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However, officials of the Kochi corporation said they have become extremely cautious while approving building permits after the recent order from the Supreme Court to demolish four apartment complexes at Maradu.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh- colony-no-4-to-be-razed-if-not-vacated-in-15-days/70139993

Chandigarh: Colony No. 4 to be razed if not vacated in 15 days

As per the plan, the UT estate office and the CHB will ensure allotment of flats to the eligible slum-dwellers.

The Chandigarh administration has given 15 days' time to slum-dwellers to vacate the land under Colony No. 4, sources in Chandigarh Housing Board (CHB) said. The land is currently occupied by slum-dwellers, who will be rehabilitated by the administration at Maloya under slum- dwellers rehabilitation scheme.

As per the plan, the UT estate office and the CHB will ensure allotment of flats to the eligible slum- dwellers. Around 2,350 residents of the colony have already been allotted flats in Maloya under the slum-dwellers rehabilitation scheme.

The colony has more than 5,000 houses. The allottees will have to pay Rs 1,000 as licence fee every month for 20 years, after which they will pay the balance to get the ownership of the flat.

The construction of the flats in Maloya had begun in June 2014 at a cost of Rs 250 crore and Prime Minister Narendra Modi was to hand over the flat keys to the allottees in May last year, but he could not as the project was incomplete. The project was originally meant to be completed by 2016.

The CHB is the nodal body for the construction of rehabilitation colonies. So far, it has built 12,736 of the 25,728 flats proposed. Of these, around 12,000 were built in Sector 38 (W), Sector 49, Dhanas, Mauli Jagran-II and Ram Darbar.

The administration rehabilitates slum-dwellers after conducting a biometric survey. The colonies resettled in the last 10 years include Colony No 5, Nehru Colony, Kuldeep Colony and Mazdoor Colony.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/shahberi- residents-to-move-lucknow-bench-against-noida-rera-order/70136337

Shahberi residents to move Lucknow bench against Noida RERA order

The residents said they had filed a complaint with the UP-Rera’s Noida bench and it had given a date for hearing on June 28.

A group of Shahberi residents has decided to move an appeal in the UP-Rera in Lucknow against a decision by its Noida bench to quash a case against unauthorised builders and the Greater Noida Industrial Development Authority (GNIDA) for allegedly allowing illegal constructions.

The residents said they had filed a complaint with the UP-Rera‟s Noida bench and it had given a date for hearing on June 28. But before the hearing, the case was “mysteriously quashed”. On the previous hearing on May 8, GNIDA had been added as a party to the case as Rera had refused to take cases that are from unauthorised areas. “It was strange because when we went for the hearing on June 28, we were told that the case was closed. The case should either have been shut before and no further hearing date should have been given, or we should have been heard on the next date,” said Harpreet Singh Arora, an advocate handling at least three cases filed by homebuyers of Shahberi with UP-Rera.

Residents said Rera was deliberately avoiding the “controversial case” and an appeal would soon be made with the higher body against the decision of the Noida bench. Residents alleged that Rera may also be trying to save the Authority as over 5,000 buyers are in lurch in Shahberi.

“This is an irregularity by Rera that is confusing us rather than solving our problems. They claim that the Shahberi area is unauthorised and our cases can‟t be heard. But there are builders in Shahberi who are registered under Rera. How is this possible? We will be applying to the appellant tribunal regarding this by next week,” said Abhinav Khare, a resident of Shahberi.

He added that cases would have to be filed quickly before the authorities start any demolition or sealing drives in the area.

Sources in Rera said the new date assigned could be a clerical error. “It is an automated system by which dates are assigned, and the next hearing date could have been a mistake. Shahberi is already an unauthorised area and Rera cannot take up such cases. This was clarified during the previous hearing,” said a Rera member.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/bengaluru- bescom-wants-buildings-under-eht-lines-in-madiwala-razed/70140434

Bengaluru: Bescom wants buildings under EHT lines in Madiwala

razed

Although it’s unclear how many buildings in these areas are likely to be affected, there are an estimated 7,900 properties under EHT power lines across Bescom limits.

The managing director of Bangalore Electricity Supply Company (Bescom) has written to Bruhat Bengaluru Mahanagara Palike(BBMP) commissioner, asking the civic body to first evacuate and then demolish buildings constructed under extra high tension (EHT) lines in violation of norms in Gurappana Palya and Bovipalya areas of Madiwala, southeast Bengaluru. The move follows a spate of fatal electrical accidents in the city.

Although it‟s unclear how many buildings in these areas are likely to be affected, there are an estimated 7,900 properties under EHT power lines across Bescom limits. Bescom officials said in case of violation of horizontal norms, the entire building would have to be demolished, while in case of vertical norms, the violating floors will have to be pulled down. However, BBMP is likely to act on its own against under-construction buildings and leave the decision on acting against the rest to the state government.

In the letter, which was accessed by TOI, Bescom has pointed out that the 66kV high tension lines were constructed more than 50 years ago in Bengaluru and that post their erection, many constructions have happened below them, in violation of rules and electrical safety norms.

“66kV EHT lines were constructed in the city more than 50 years ago and at that time, they were constructed as per norms. Since then, however, many constructions have come up right below these lines — which have led to a spate of accidents in the city when it rained. To avoid such untoward incidents, these unauthorized constructions and buildings in Bovipalya and Gurappana Palya must be evacuated and demolished to retain safe distance from high tension power lines,” it read.

Bescom MD C Shikha told TOI: “The BBMP had asked us to survey the two areas to find if they are in violation of electrical safety norms. Upon inspection, we found many constructions defied rules. We sent a letter to the BBMP, asking them to demolish these buildings. As per a joint survey conducted by Bescom, KPTCL (Karnataka Power Transmission Corporation Limited) and BBMP, over 7,900 properties fall under EHT lines in Bescom limits. The consolidated list is being prepared and will be sent to the BBMP once compiled.”

Mayor Gangambike Mallikarjun said the civic body will conduct a survey on Tuesday to find the total number of such existing as well as under-construction properties. All under-construction buildings

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violating norms within Bescom limits will be demolished, the mayor said.

“Many people have died recently after coming in contact with live wires and due to violation of vertical and horizontal distances that should be maintained from EHT lines. Bescom officials wrote to us in this regard. We held a meeting with BBMP officials and came to the conclusion that buildings coming under high tension wires present a dangerous situation. We also found that extra floors have been added to buildings, in violation of vertical height. We will therefore conduct a survey to identify such properties. While all under-construction buildings violating these norms will be demolished, for existing buildings with occupancy, we will submit the list of properties to the state government and let it decide,” the mayor said.

“Demolition of under-construction buildings, which are posing a grave threat to the public, will be taken up on priority,” she added.

Over 25 fatal electrical accidents have been recorded in the past three months alone, while in the past four years, at least 500 people have died and 350 have been injured, show data provided by Bescom.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/sub-registrars- may-get-powers-to-cancel-sale-deeds-with-fake-documents-in-goa/70140075

Sub-registrars may get powers to cancel sale deeds with fake documents

in Goa

Rane said that a lot of wrong things have happened before and the government is trying to gather information from the sub-registrars.

Law minister Vishwajit Ranesaid on Monday that the government is trying to give additional power to sub-registrar to cancel a sale deed if it is registered using forged documents.

Rane said that a lot of wrong things have happened before and the government is trying to gather information from the sub-registrars. “There should be power with sub-registrar to scrap a deed of sale if anyone furnishes wrong information,” he said.

The law minister said, “We will not allow this type (registering of documents using forged documents) of things to happen, wherein even dead persons are signing sale deeds.”

He said the government will keep online registration of documents at sub-registrar on hold for now and streamline it further. We are also considering introducing tatkal registration, Rane said.

The law minister said that a lot of land which is in litigation is also being registered at the sub- registrar‟s office. “I will not allow registration of this type of documents,” he said.

Rane said that the sub-registrars have been warned not to indulge in corrupt practices while registering documents. “Peons at the sub-registrars‟ office have become agents and after the assembly session the first thing I will do is transfer these people,” he said.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad- development-body-to-ask-government-for-rs-2000-crore-to-build-pmay- flats/70136451

Ghaziabad development body to ask government for Rs 2,000 crore to

build PMAY flats

The UP government wants the GDA to use its infrastructure fund and the share that it gets from the sale of properties to build the houses.

A target set by the UP government to build 36,000 flats under the Pradhan Mantri Awas Yojana(PMAY) by 2021 will require the Ghaziabad Development Authority(GDA) to spend at least Rs 2,400 crore, which the development agency says is “very difficult” given the paucity of funds it is facing.

“The cost of each flat under the PM scheme is Rs 4.5 lakh, of which the Centre will contribute Rs 1.5 lakh, UP government Rs 1 lakh and the remaining amount will have to be borne by the beneficiary. But we have seen that the actual cost of building one house comes to around Rs 15 lakh, which includes cost of construction and the land. This raises the difference amount for the GDA,” said a senior official at the development agency. He added that the GDA would need 60 acres for constructing the flats.

“By a rough estimate, the GDA will have to bear Rs 2,400 from its kitty to meet the target of building 36,000 flats under PMAY. This looks very difficult, given the financial health that the development agency is in. We desperately need financial help from the state government,” he added.

The UP government wants the GDA to use its infrastructure fund and the share that it gets from the sale of properties to build the houses. “The funds collected from these sources are meant for GDA‟s own projects. If they are used for PMAY, we will be left with little or no money for other projects,” the official said. “We will raise these concerns with the state government in a meeting later and will seek funds from them for PMAY. We can also rely on private developers for taking up more construction of flats,” he added.

According to the break-up, the target set for the GDA is 13,500 affordable houses in 2018-19; 18,000 units in 2019-20 and 4,500 more for 2020-21. So far, no flats under PMAY have been completed. The places where the GDA is planning to construct affordable houses are Koyal Enclave, where 1,800 units will come up. In Pratap Vihar, the target is 1,910 units; 1,441 in Masuri; 528 in Newari; 532 in Dasna; and 856 in Maduban-Bapudham.

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Newspaper/Online The Telegraph Date July 10, 2019 Link https://www.telegraphindia.com/business/divergent-calcutta-realty- picture/cid/1694150?ref=more-from-business_business-page

Divergent Calcutta realty picture

The coming quarters could witness more activity

New projects in the residential sector rose from the dumps, while office space offerings came to a complete halt in the first quarter of 2019-20, according to separate studies on the Calcutta real estate market by two property consultants.

A research report released by Anarock on Tuesday showed home buyers were offered 2,640 new units in April-June 2019, a jump of 164 per cent quarter-on-quarter, as the sector came out of its weakest period of the last 18 months.

A Knight Frank report published simultaneously noted that there was no fresh supply in the commercial and office space market as developers shied away from introducing fresh stock in a city where vacancy hovered above 30 per cent.

Residential space

Anarock, which tracks projects that have been approved by the Housing Industry Regulatory Authority in Calcutta and offered for sale for the first time to the buyer, said sale of units were down in April-June.

While 4,020 units were absorbed in January-March, established developers could sell only 3,540 units in April-June, registering a decline of 12 per cent. Average price marked a marginal decline of Rs 4,375 per square foot in the second quarter compared with the first.

But it is the number of launches that gives away the industry‟s confidence in the inherent strength of the market. This is yet to cross the average of 4,000 units plus.

Anuj Puri, chairman of the consultancy, said the coming quarters could witness more activity. “The government‟s budget „bonanza‟ for affordable housing — an additional Rs 1.5 lakh income tax deduction on interest paid on home loans availed till March 2020 — will incite builders to increase their supply in this category so as to attract first-time home buyers,” he said.

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Commercial property

For the first time in five years, there has been no new completed project that developers came up with in the January-June period, Knight Frank reported, as developers were forced to defer construction timeline due to high vacancies.

“The perception about Calcutta and Bengal continued to be an issue even as the ground reality may be different. This could be the reason why there is so much vacancy despite rentals being low,” Sugata Sarkar, senior director, consultancy & market research at Knight Frank, said.

Salt Lake and Rajarhat remained the mainstay of leasing activity. But Knight Frank noted high vacancy despite low rentals in the area. Overall, 32 per cent of office space continues to remain idle.

Swapan Dutta, branch director of Knight Frank, Calcutta, said leasing activity in the warehouse/logistic sector has picked up steadily in Bengal, offering developers a new asset class to focus on.

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Newspaper/Online The Telegraph Date July 10, 2019

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Newspaper/Online The Telegraph Date July 10, 2019

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Newspaper/Online ET Realty (online) Date July 10, 2019 Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-cuts- minimum-lending-rate-by-five-basis-points-to-8-40/70151488

SBI cuts minimum lending rate by five basis points to 8.40%

The new rates, effective Wednesday, is the third reduction by SBI in this financial year havng cut the rates by 5 bps each in April and May, while its home loan rates has come down by 20 bps during this period.

A day after Reserve Bank governor Shaktikanta Das said he expects faster transmission of the three successive repo rate cuts, State Bank lowered its lending rates by 5 basis points across all tenors.

The new rates, effective Wednesday, is the third reduction by SBI in this financial year having cut the rates by 5 bps each in April and May, while its home loan rates has come down by 20 bps during this period.

The one-year marginal cost of funds-based lending rate (MCLR) or minimum lending rate, to which all loans are linked, has been cut to 8.40 per cent from 8.45 per cent, the nation's largest lender said in a statement on Tuesday.

From July 1, the bank had also introduced repo-linked home loan products.

Talking to reporters after the customary post-budget meeting with the finance minister on Monday, Das had said after delivering three back-to-back rate cuts to the tune of 75 bps, RBI expects a quicker transmission by banks.

"At the June MPC meeting, I had said by that time 50 bps of repo rate cut had already been announced, only 21 bps had been transmitted. But one positive thing that is happening now is, earlier it used to take six months for transmission, now it is taking a much shorter period of two- three months," Das had said.

"Thereafter, we announced 25 bps cut more. So, it's now a cumulative 75 bps cut. We are collecting the data and also you have to keep in mind that right from June, the system has more than adequate surplus liquidity," he had said.

After the 25 bps repo rate cut in the June policy, Bank of Maharashtra, Corporation Bank, Oriental Bank and IDBI Bank had reduced their MCLR by 5-10 bps.

The next meeting of the monetary policy committee is scheduled for August 5-9, when majority of analysts expect another rate cut.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/residential/housing-sales- hikes-up-in-h1-2019-in-eight-cities-report/70141533

Housing sales hikes up in H1 2019 in eight cities: Report

The supply of new homes rose by 21 per cent to 1.11 lakh units during January-June 2019 from 1.24 lakh units in the year-ago period, the consultant said.

Housing sales in eight major cities increased marginally by 4 per cent to 1.29 lakh units during the first half of this calendar year, largely driven by rise in demand of affordable homes, according to UK- based property consultant Knight Frank.

The supply of new homes rose by 21 per cent to 1.11 lakh units during January-June 2019 from 1.24 lakh units in the year-ago period, the consultant said.

Knight Frank on tuesday released its half-yearly report - 'India Real Estate' that tracks demand, supply and prices of residential and office properties in eight cities -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.

Housing sales increased to 1,29,285 units from 1,24,288 units, while new launches rose to 1,11,175 units from 91,739 units during the period under review. Unsold inventories lying with the developers dropped by 9 per cent to 4,50,263 units.

"The India sales improved by 4 per cent in H1 2019 making this the third consecutive quarter to record sales improvements," Knight Frank India Executive Director (North) Mudasir Zaidi told reporters here.

The trends conclusively show a general arrest of a declining trend that can well be the inflection point leading to growth of sales in the market, Zaidi said.

According to the data, National Capital Region (NCR) saw maximum increase in demand with sales rising by 10 per cent at 19,852 units during the first six months of this year, followed by Bengaluru with 9 per cent increase at 28,225 units. Housing sales in Pune were up by 6 per cent at 17,364 units, 5 per cent in Chennai at 8,979 units, 4 per cent in Mumbai to 33,731 units, 2 per cent in Ahmedabad at 8,212 units. Demand was flat at 8,334 units in Hyderabad.

However, sales declined in Kolkata by 30 per cent to 4,588 units. This is primarily due to the procedural delays caused by the West Bengal Housing Industry Regulatory Authority and the pronounced dependence of developers on the distressed non-banking financial company (NBFC)

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sector.

"The concerted efforts by the government and the incentives given have resulted in substantial demand in affordable housing which has resulted in an overall boost to residential sales. This also seems to be in line with the government vision for 'housing for all'," said Shishir Baijal, CMD, Knight Frank India.

The weighted average prices have stagnated across cities with Mumbai, Pune and Chennai seeing prices fall by a further 3 per cent, 4 per cent and 3 per cent year-on-year (YoY), respectively.

Hyderabad continues to see exceptional price growth at 9 per cent YoY due to the high proportion of ready inventory and very little supply coming online during 2018.

During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/residential/rainwater- harvesting-in-ghaziabad-housing-societies-to-be-checked/70139221

Rainwater harvesting in Ghaziabad housing societies to be checked

It is mandatory for developers and RWAs to adhere to clauses in the building by-laws related to rainwater harvesting and compulsory plantation. Non-adherence to them may elicit punitive measures from GDA.

The Ghaziabad Development Authority (GDA) will soon carry out on-spot inspections in all group housing societies, industrial and institutional units in the city to ascertain the level of compliance regarding rainwater harvesting and tree plantations.

“From 2012 till now, the GDA has issued completion certificates to 798 housing societies and others in which it had been made mandatory to install rainwater harvesting measures, ahead of monsoon and in view of critical ground water table in the city we will carry out on spot verification to find out level of adherence,” said Kanchan Verma, vice chairperson, GDA.

GDA‟s enforcement wing has also been asked to check adherence to tree plantation clauses. “Depending on the plot area of group housing societies, industrial and institutional units in the city, there is a set of rules that includes compulsory planation,” said Asheesh Shivpuri, chief architect and town planner, GDA. According to building by-laws, in a plot area up to 200 sq m, plantation of two trees at a distance of 10 metres is compulsory. “In Industrial areas located in polluted zones, 15% of their total area should be densely planted and up to 1 hectares, it is mandatory to plant 125 trees,” added Shivpuri.

“In group housing societies, a tree per 2.5 persons needs to be planted in societies‟ open and green areas,” added Shivpuri. Even though there is a well-defined law on rainwater harvesting and compulsory plantation, environmentalists point out to large scale violation of the law. “You will hardly find any society that has really adhered to the mandatory plantation clause,” said Ruchin Mehra, a city based environmentalist.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/commercial/himachal- becomes-first-state-to-notify-energy-conservation-building-code- 2018/70136554

Himachal becomes first state to notify Energy Conservation Building

Code 2018

According to the officials of the Directorate of Energy, this code has been formed by Bureau of Energy Efficiency, Union Ministry of Power under Energy Conservation Act 2001.

Himachal Pradesh is the first state in the country to achieve the milestone of notifying State Energy Conservation Building Code 2018 to reduce energy consumption demand in commercial buildings by 30%. This policy will be implemented in its true sense after the successful incorporation of its provisions in Town & Country Planning Rules by Town and Country Planning Department.

According to the officials of the Directorate of Energy, this code has been formed by Bureau of Energy Efficiency, Union Ministry of Power under Energy Conservation Act 2001 and every state needs to amend and notify the code based on local climatic conditions for effective implementation on ground.

With the mandatory implementation of the Himachal Pradesh Energy ConservationBuilding Code (HPEBC) & Rules, 2018, every commercial building such as educational institutes, shopping complex, hotels, hospitals, and multiplexes etc having built-up area of 750 sq meters or more shall be granted planning permission by approval or development authority only after the compliance of the provisions of this code.

Based on the provisions mentioned in the code, the climate zones in Himachal Pradesh have been divided into two categories that is areas above altitude of 1600 m from sea level shall follow requirement of cold climate conditions and areas below 1600 m from sea level shall follow requirement of composite climate conditions.

Officials said that Directorate of Energy under the department of MPP & Power and Bureau of Energy Efficiency, Government of India was working on this code for last two years.

The HPECBC & Rules 2018 has been prepared after having vide consultation with all stakeholder departments such as Town and Country Planning Department, HPPWD, HIMUDA, Urban Development Department, HIMURJA, HPSEBL, Rural Development Department.

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Directorate of Energy has also organized about 25 number of awareness workshops and training programs for capacity building of relevant stakeholders in every district of the state as well.

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Newspaper/Online ET Realty (online) Date July 09, 2019 Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-metro- phase-iv-project-cant-wait-will-pass-orders-sc/70139805

Delhi Metro phase-IV project can't wait, will pass orders: SC

A bench comprising Justices Arun Mishra and Deepak Gupta was told by senior advocate Aparajita Singh, who is assisting the top court as an amicus curiae in pollution matter, that the project is "critical" and the pending issue should be resolved soon.

Stalemate between the Centre and the Delhi government over financial aspects of Delhi Metro''s 104- km phase-IV came under the scanner of the Supreme Court which said Monday that it would pass order in the matter as the "project cannot wait".

Singh referred to a recent report of Environment Pollution Control Authority (EPCA) which said that the approval for "103.94 km phase IV of the Delhi metro has been held up since 2014, when the project was submitted to the Union government for its approval".

The report said: "There is a stalemate in the discussions between the Union Government and the Delhi government on different financial aspects of the project. The Delhi government has on April 10, 2019 communicated its direction that DMRC (Delhi Metro Rail Corporation) would not start work of Delhi Metro phase-IV till these issues are resolved."

The amicus told the bench that issues which are not resolved are -- bearing of the operational loss, repayment of Japan International Cooperation Agency (JICA) loan in case of default, sharing of land cost and taxes.

Additional Solicitor General A N S Nadkarni, appearing for the Centre, told the bench that project financing has been done in consonance with the Metro Rail Policy of August 2017 and metro projects of other cities like Bhopal, Indore, Kanpur, Patna and Agra have been sanctioned on the same financial pattern as of Delhi metro phase-IV.

The bench asked Nadkarni about the past practice on liability of taxes among the Centre and states as well as regarding who bears the cost of land.

Nadkarni said he would take instructions on these aspects and get back to the court.

The bench posted the matter for hearing on July 12 and said, "You take instructions. We will pass order. This project cannot wait".

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The EPCA, in its report filed in the court, has said that phase-IV of the Delhi Metro is "critical as it will add another 104 km to the network" and "it is designed to join the current network and will densify it and make the system more viable and attractive to commuters."

The bench also dealt with the issue of remote sensing technology which will help identify polluting vehicles in the national capital.

The amicus told the court that EPCA has suggested that remote sensing technology should be put in place as it would help check emission of particulate matter (PM) and other hazardous substances like nitrogen oxides (NOx) and sulphur oxides (SOx) from vehicles.

She said that this technology was used successfully in Kolkata and an agency, which was asked by the apex court to check its modalities, has checked on around 1.76 lakh vehicles and found the technology to be useful.

The bench asked EPCA to apprise it about the modalities to implement the remote sensing technology.

The bench also dealt with the issue of parking policy in Delhi.

The amicus said that issue of parking was worse in the residential areas and the EPCA can submit a report in the court on the issue after consulting all the stakeholders.

The apex court had earlier observed that finding space to park vehicles in Delhi was a huge problem and even footpaths and roads were being used for it, creating problems for the pedestrians.

These issues have cropped up before the court when it was hearing a matter relating to air pollution in Delhi-National Capital Region.

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Newspaper/Online Anandabazar Patrika Date July 10, 2019

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