10-Oct-2019

06-Dec-2019

15-Feb-2020

CREDAI Bengal Daily News Update | 15.02.20

Government clears Rs 540 crore in stuck housing projects from

stress fund

"Special Window clears projects with capital commitment of more than Rs 540 crores.

Disbursements started which will provide relief to 1800 home buyers and unlock Rs 3,000

crores of invested capital," the finance ministry said in a tweet.

The government, which has set up a Rs 25,000-crore stress fund to revive stalled housing

projects, on Friday said it has cleared investments of over Rs 540 crore in some stuck residential

properties that will benefit 1,800 homebuyers. That apart, a preliminary clearance has been given

for due diligence in 14 projects, which would require a fund infusion of Rs 2,500 crore. Another

40 more transactions are under active consideration.

In November last year, the central government announced a Rs 25,000-crore fund to help

complete over 1,500 stalled housing projects, including even those that have been declared NPAs

(non-performing assets) or admitted for insolvency proceedings.

The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered

projects with positive net worth will be provided funds.

"Special Window clears projects with capital commitment of more than Rs 540 crores.

Disbursements started which will provide relief to 1800 home buyers and unlock Rs 3,000 crores

of invested capital," the finance ministry said in a tweet.

"Further, preliminary clearance has been given for due diligence to 14 projects with capital

commitment of Rs.2500 Crores that will provide relief to 10,000 home buyers and release

Rs12500 Crores of invested capital," it tweeted.

"Around 40 more deals under active consideration for investment," the finance ministry said.

The ministry, however, did not disclose the name of projects as well as developers who have

received this Rs 540 crore amount from stress fund.

The special window of Rs 25,000 crore is in form of alternative investment fund (AIF). The

Centre is infusing Rs 10,000 crore into this stress fund, while the remaining being provided by

state insurer LIC and the country''s largest lender SBI. The AIF is being managed by SBI Cap.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/government-clears-rs-540-crore-in-stuck-housing-projects-from-stress-fund/74139150

LIC Housing Finance identifies 14 projects for alternative

investment fund

"We have some 14 projects (eligible) for the alternate investment fund created last year.

We have advised those developers to be in touch with SBI Caps and the process has started,"

LICHFL's managing director and CEO Siddhartha Mohanty said.

Mortgage lender LIC Housing Finance on Friday said it has identified 14 projects to be referred

to the alternative investment fund (AIF), set up by the government for last-mile funding, a top

company official said. The housing finance company is the sole lender to these 14 real estate

projects and has a total exposure of Rs 1,400 crore to them.

In an effort to boost the ailing real estate, the government in November last year had approved

setting up of a Rs 25,000 crore bailout fund.

The government said the AIF will act as a 'special window' to provide loans to over 1,600

incomplete affordable and middle-lower income housing projects. The fund is managed by SBI

Caps.

"We have some 14 projects (eligible) for the alternate investment fund created last year. We have

advised those developers to be in touch with SBI Caps and the process has started," LICHFL's

managing director and CEO Siddhartha Mohanty told reporters after launching its mobile app.

He said all these 14 projects need last-mile funding.

LICHFL on Friday said it has adopted google cloud to power its next generation digital mobile

platform and serve the needs of home loan applicants.

The mobile application provides instant eligibility for pre-approval home loan based on the KYC

and other data provided by the applicants.

In the quarter ended December 31, 2019, LICHFL reported a flat profit after tax at Rs 597.53

crore due to higher provisioning of Rs 390 crore for bad loans.

Its net profit in the year-ago period was Rs 596.31 crore.

During the period, the stage 3 exposure at default or NPAs increased to 2.73 per cent as against

1.25 per cent in the same period last year.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 15, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/lic-housing-finance-identifies-14-projects-for-alternative-investment-fund/74144264

Few takers for town planning schemes in Maharashtra

“The realty sector is not looking up and the cash-strapped state government is keen on

focusing other schemes,” one official said.

Nearly 150 town planning schemes in Maharashtra, proposed by the erstwhile BJP-led

government, have failed to take off.

The then government had hoped to roll-out 150 town planning schemes in the state, but the current

dispensation is yet to give the necessary clearances, officials in the know said. “The realty sector

is not looking up and the cash-strapped state government is keen on focusing other schemes,” one

official said.

The plan was further hobbled by the lack of interest showed by the civic bodies in the state. Senior

town planning department officials said that while the previous government had directed 27

municipal corporations and 250 municipal councils to come up with proposals — on the lines of

the Mann-Mhalunge scheme — only a handful have shown interest as the current government is

yet to issue directions on the same.

“Only Pune Municipal Corporation, Pimpri Chinchwad Municipal Corporation, Kalyan-

Dombivli Municipal Corporation, Mumbai Metropolitan Regional Development Authority, Pune

Metropolitan Regional Development Authority and Nagpur Municipal Corporation have

responded,” a top government official said.

The official added the government would clear the proposals as and when the local authority

submits one. However, some analysts said the process may not be as clear-cut. “The slowdown

in the announcement of more schemes could also be attributed to the amount of time it consumes

— from the announcement of the schemes to checking for the land ownership, it is a lengthy

process,” another analyst said.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 15, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/few-takers-for-town-planning-schemes-in-maharashtra/74144395

Maharashtra housing minister proposes prefab technology to build

affordable homes

Following complaints over the quality of affordable houses, the minister insisted on using

the pre-fab technology to ensure that these houses provided comfortable living.

State housing minister Jitendra Awhad has proposed “prefab technology” for the construction of

affordable houses to be undertaken by the Maharashtra Housing and Area Development

Authority on the Maharashtra government lands in the city, Nashik, Aurangabad, Palghar and

Nagpur.

Following complaints over the quality of affordable houses, the minister insisted on using the

pre-fab technology to ensure that these houses provided comfortable living.

Collectors would have to allot space for these affordable houses to be provided at a price of Rs3-

4 lakh per unit, said a source in the Maharashtra Housing and Area Development Authority

(Mhada). An international tender would be floated in the next three months for the proposed

project, stated officials in the know of the meeting held by the minister.

Mhada would consult experts about the project technology after it was proposed by the minister.

Each home would have an area 300-350sqft. According to the minister, this will ensure that the

economically weaker class beneficiaries have good houses.

The entire project would be under the affordable housing scheme. The state has set a target of

building 19.4 lakh affordable houses. At present, a total of 13.58 lakh units had been approved

by the government and 2 lakh tenements had been occupied by the beneficiaries, stated officials.

The affordable housing scheme under the Pradhan Mantri Awas Yojana aims to reach out to the

economically weaker section of society. The Centre has proposed 17 new technologies for

providing quality housing in less time.

Sources from the housing department stated that the “pre-fab” technology was tested abroad. A

private company in Khopoli also tested it.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 15, 2020

Link https://realty.economictimes.indiatimes.com/news/technology/maharashtra-housing-minister-proposes-prefab-technology-to-build-affordable-houses/74127776

Pune civic body to seek data of rented properties from cops

The property tax department of the Pune Municipal Corporation (PMC) said there were

about 9 lakh residential properties in the city, many of which were rented out by the owners.

The civic body will seek data of rented residential properties from the city police, based on which

tax discounts to such units would be discontinued.

The property tax department of the Pune Municipal Corporation (PMC) said there were about 9

lakh residential properties in the city, many of which were rented out by the owners.

“These units are not eligible for the 40% discount in property tax. The administration has already

initiated steps to discontinue the discount for such properties,” a senior PMC official said.

“We will now seek data from the Pune police to identify more properties, which are still availing

the tax discount despite being put on rent,” the official added.

He said officials from the property tax department were also paying random visits to properties

availing the tax discount.

The civic administration said every property owner was expected to inform the civic body if the

property had been rented out. “However, it has been observed that the owners are not providing

such details as they do not want to lose out on the 40% discount in property tax. This is the

primary reason for the civic administration to start door-to-door survey,” another civic official

said.

The administration’s steps to identify the rented properties follows the appointment of a

committee to propose measures to boost the civic body’s income. The committee had suggested

to the PMC to plug loopholes in recovery of property tax arrears and identify rented properties,

which are still availing the discount.

“The committee has suggested to identify all the rented properties in the city, which are availing

40% discount,” the official said.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-body-to-seek-data-of-rented-properties-from-cops/74134145

Kochi civic body vows to expedite PMAY and LIFE schemes

The corporation has identified more than 8,000 beneficiaries under the scheme. Of the

assigned Rs 4 lakh, the central government was to contribute Rs 1.5 lakh, state government,

Rs 50,000 and the corporation Rs 2 lakh per house.

The implementation of Pradhan Mantri Awas Yojana (PMAY) had been progressing at a slow

pace in the corporation in the past few years. Now, the authorities claim that they are expediting

the project implementation.

As per the scheme, the government will provide a financial support of Rs 4 lakh for constructing

houses for each homeless family. The funding pattern includes a contribution from the Union

government, the state government and the municipal corporation. Due to shortage of funds, the

local body couldn’t provide its share to around 4,000 beneficiaries.

The corporation has identified more than 8,000 beneficiaries under the scheme. Of the assigned

Rs 4 lakh, the central government was to contribute Rs 1.5 lakh, state government, Rs 50,000 and

the corporation Rs 2 lakh per house.

With the corporation failing to raise the funds, the state government facilitated a loan from Hudco.

The government also promised to pay the interest on the loan. Despite availing the loan, the

corporation could not implement the project. The local body diverted the funds for other purposes.

“Now, we have asked the officials to submit a status report on the project. Once we get it, we will

take measures to expedite the project,” said P D Martin, chairperson, standing committee for

welfare, Kochi corporation.

Interestingly, CSML has earmarked Rs 13 crore for providing financial support for constructing

houses under PMAY and LIFE schemes.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/kochi-civic-body-vows-to-expedite-pmay-and-life-schemes/74138675

Uttar Pradesh notifies new stamp duty rates on registration fee for

property

Stamp duty on registration fees will be calculated as 1% of such consideration or value,

calculated for the purpose of stamp duty chargeable on the document, whichever is higher,

subject to the minimum of Rs 100.

The Uttar Pradesh government on Thursday notified the new stamp duty rates on registration fee

for property and other transactions under which the maximum cap of Rs 20,000 on transactions

has been done away with.

In the notification, the new stamp duty rates have been stipulated with the assent of the Governor.

Under the new rules, stamp duty on registration fees will be calculated as one percent of such

consideration or value, calculated for the purpose of stamp duty chargeable on the document,

whichever is higher, subject to the minimum of Rs 100. So, on a value of Rs 1 crore, the levy will

be Rs 1 lakh.

The new rule replaces the old one which levied the stamp duty at 2 per cent but capped it a

maximum of Rs 20,000 with a minimum slab of Rs 100.

In the new regime, the upper slab of Rs 20,000 has been done away with and in case of high value

property transactions, the stamp duty will go up.

This change is likely to make sale and purchase of property and real estate more expensive in a

market that is already very dull and showing no signs of revival.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/uttar-pradesh-notifies-new-stamp-duty-rates-on-registration-fee-for-property/74138551

Kochi: Only 13 small buildings named in survey

Two of the encroachments named in the list have been made by the corporation. On

Poonithura side of the lake, corporation is building a park and a pathway with funds availed

as part of Amrut project.

The list of encroachments on the banks of Chilavannoor Lake, in the survey report submitted by

Fort Kochi subcollector Snehil Kumar Singh in the high court, shows a total of 114 violations in

six groups; but a bulk of the properties, apart from 13 buildings and three structures with sheeted

roof, has the word ‘nil’ when it comes to the details of construction.

“Most encroachments with details of constructions are one or two-storeyed buildings. They are

all small fish,” said AV Antony of Chilavannoor, who had moved SC on CRZ violations in his

neighbourhood. The report on CRZ violations had named 13 buildings, including 12 apartments.

Antony said it is curious that no apartments have been mentioned while relatively small buildings

were identified.

Two of the encroachments named in the list have been made by the corporation. On Poonithura

side of the lake, corporation is building a park and a pathway with funds availed as part of Amrut

project. The encroached land equals 0.2699ha. Antony alleged that corporation had constructed

the road and park to help a builder. “One of the properties was registered in the name of a close

relative former additional chief secretary of Tamil Nadu,” he alleged. Corporation has also built

a road on Elamkulam side encroaching kayal land (0.009 ha). As per the list, around 14

encroachers are yet to be identified. Another 11 properties in the list have not been occupied yet.

The name of a church also figures in the list .

The survey was conducted by a team headed by district survey superintendent under the

supervision of Singh. The surveyors had conducted the survey after separating Chilavannoor Lake

on Elamkulam side into five portions; Poonithura side was divided into two.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/kochi-only-13-small-buildings-named-in-survey/74138498

Embassy Office Parks REIT's net income up 16% at Rs 464 crore

in Q3 FY20

Embassy Office Parks Management Services, manager to Embassy REIT, has declared a

distribution of Rs 470.7 crore or Rs. 6.1 per unit for the quarter.

Embassy Office Parks REIT has reported 16% on-year rise in net operating income for the

quarter ended December to Rs 463.9 crore. India’s first listed Real Estate Investment Trust

(REIT) and the largest in Asia in terms of area reported 14% growth in revenue to Rs 545.9 crore,

the company said in a release.

Embassy Office Parks Management Services, manager to Embassy REIT, has declared a

distribution of Rs 470.7 crore or Rs. 6.1 per unit for the quarter. The cumulative distribution for

the financial year so far totals Rs 1,350.4 crore or Rs.17.5 per unit. The record date for the

quarter’s distribution is February 24, 2020 and the distribution will be paid on or before February

29, the company added.

“Our office portfolio continues to deliver. In 2019, leasing across the Indian markets crossed a

record 60 million sq ft, again underlining the strength of India’s office sector as the leading office

absorption market globally,” said Michael Holland, Chief Executive Officer of Embassy REIT.

Embassy Office Parks REIT’s portfolio occupancy increased to 95.1% as on December end, an

increase of 220 basis points from a year ago. Cumulative new leasing for the year so far stood at

record 1.7 million sq ft.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 15, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/embassy-office-parks-reits-net-income-up-16-at-rs-464-crore-in-q3-fy20/74144300

Madras HC pulls up departments over delay in revising property

tax

A division bench of Justice N Kirubakaran and Justice P Velmurugan, irked over the delay

in revising property tax rates, observed that political parties in the state are only keen on

wining elections.

Censuring the Chennai corporation and the municipal administration department for failing to

revise property tax in Chennai for over two decades, the Madras high court on Thursday observed

that that people outside the corporation limits of Chennai are paying more property tax than those

in the corporation.

A division bench of Justice N Kirubakaran and Justice P Velmurugan, irked over the delay in

revising property tax rates, observed that political parties in the state are only keen on wining

elections.

The bench made the observations on a PIL moved by advocate V B R Menon, seeking a direction

to authorities to formulate and notify transparent and uniform rules, procedures and applicable

rates for determining property tax for all categories of buildings in areas under Chennai

corporation limits.

On February 12, the bench had directed the appearance of Chennai corporation commissioner and

the secretary of municipal administration department to explain the reasons for the suspension of

property tax which was revised in 2018 after a delay of 20 years.

When the plea came up for hearing on Thursday, additional advocate general P H Arvind Pandian

informed the court that the commissioner could not appear as directed since he had left for Delhi

on official duty. Pandian sought more time from the court for the commissioner’s appearance.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 14, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/madras-hc-pulls-up-departments-over-delay-in-revising-property-tax/74134106