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08-July-2019
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CREDAI Bengal Daily News Update | 08.07.19
Refund to buyers should be with interest at par with home loan rates:
NCDRC
The apex consumer commission has said builders have to pay compensation and litigation cost
to homebuyers who seek refund.
In order to ensure that homebuyers recover all the money invested by them, including interest paid on
home loans, the National Consumer Disputes Redressal Commission (NCDRC) has said builders
should refund money for delayed projects with interest at the rate at which a nationalised bank
like SBI gave home loan during the corresponding period.
HIGHLIGHTS
The National Consumer Disputes Redressal Commission (NCDRC) has said builders should refund
money for delayed projects with interest at the rate at which a nationalised bank like SBI gave home
loan during the corresponding period
The apex consumer commission has said builders have to pay compensation and litigation cost to
homebuyers who seek refund.
The apex consumer commission has said builders have to pay compensation and litigation cost to
homebuyers who seek refund. In the absence of any uniformity in the decisions delivered by various
consumer forums on the issue of interest rate, a bench of S M Kantikarand Dinesh Singh has said
linking it with rate of interest of home loan was ―appropriate and logical‖.
The commission passed the order on a plea of 20 homebuyers who had invested around Rs 10 crore in
Wave Garden housing project in Mohali in 2012. The builder — Country Colonisers Pvt Ltd — had
promised to hand over possession of flats within three years but failed to complete construction in the
last seven years.
―In so far as refund of the amount deposited by the complainant with the builder is concerned, there
can be no two opinions. The refund in full has necessarily to be made by the builder to the
complainant. In respect of the interest on the amount deposited, it is always desirable and preferable,
to the extent feasible and appropriate in the facts and specificities of a case, that some objective
logical criteria be identified and adopted to determine an apt rate of interest,‖ the NCDRC said.
―The rate of interest cannot be arbitrary or whimsical, some reasonable and acceptable rationale has to
be evident, subjectivity has to be minimised. In our considered view, bearing in mind that the subject
unit in question is a residential dwelling unit, in a residential housing project, the rate of interest for
Newspaper/Online ET Realty (online)
Date July 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/refund-to-buyers-should-be-with-interest-at-par-with-home-loan-rates-ncdrc/70121216
Page 3 of 30
house building loan for the corresponding period in a scheduled nationalised bank (take, State Bank of
India) would be appropriate and logical, and, if floating/varying/different rates of interest were/are
prescribed, the higher rate of interest should be taken for this instant computation,‖ it added.
It also directed the builder to pay Rs 1 lakh as compensation and Rs 1 lakh as cost of litigation to each
homebuyer. The commission also slapped a fine of Rs 5 lakh on the company for indulging in unfair
trade practices and directed it to deposit all the money within four weeks.
The NCDRC said homebuyers were ―put to loss and injury, a continuous position of mental agony and
physical harassment, hardship and difficulty, uncertainty and helplessness‖ even after paying
substantial amount and the builder has to refund the principal amount deposited by them with
equitable interest besides the lumpsum compensation and cost of litigation.
_________________________________________________________________________________
Page 4 of 30
HC raps MHADA over Mumbai's Esplanade Mansion
A division bench of Justices S C Dharmadhikari and Gautam Patel had last month directed
Mhada to take steps to secure the area around the building.
Does human life mean nothing, the Bombay High Court on Friday asked after it was informed that
the Maharashtra Housing Area Development Authority (MHADA) was yet to entirely secure the 150-
year-old dilapidated Esplanade Mansion in south Mumbai. A division bench o f Justices S C
Dharmadhikari and Gautam Patel had last month directed Mhada to take steps to secure the area
around the building.
The court was on Friday informed by MHADA lawyer Prakash Lad that barricades have been put
around the building and a separate way had been made for pedestrians to walk and for vehicular
movement.
The bench then sought to know if any portion hanging from the top of the building collapsed whether
it would collapse on the road or inside the barricades put up.
When Lad said the debris would fall on the road, the bench asked MHADA to put up netting covering
the entire building.
"We want netting around the entire building. Does human life mean nothing to you (MHADA)? All
this should have been done by now. The hanging portions are not going to give prior notice to Mhada
before collapsing," the court said.
The court suggested MHADA take assistance from those contractors who undertake work of netting
of mountains and hills during the monsoon season on the Mumbai-Pune Expressway to prevent
landslides.
"We are not satisfied with the safety measures undertaken. We want measures that cover the building
from top to bottom. Our primary concern is that in this rainy season there should be no untoward
incident," the court said.
The bench directed a senior officer from the traffic police department to visit the area and make
necessary suggestions to MHADA.
The occupants of the 150-year-old heritage structure in south Mumbai were evicted after the building
was declared dangerous.
The five-floor Esplanade Mansion, formerly known as Watson's Hotel, was built with cast iron
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/hc-raps-mhada-over-mumbais-esplanade-mansion/70100759
Page 5 of 30
fabricated in England and was enrolled in the list of '100 World Endangered Monuments'.
As per earlier directions from HC, the India Institute of Technology Bombay had conducted a
structural audit of the building and had recommended its demolition.
MHADA, in May this year, filed an application seeking a go-ahead from the HC to implement IIT's
recommendation.
However, the BMC's Heritage Committee and the Indian National Trust for Art and Cultural Heritage
(INTACH) were of the opinion that the building need not be demolished and can be repaired and
restored.
The bench on Friday said it would decide on this issue at a later stage, and that presently ensuring the
area around the building is secured was of importance.
The court also said that heritage experts and conservationists who are now coming forward and saying
the building should be repaired and restored should have done so when the condition of the building
had started deteriorating.
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Page 6 of 30
Maharashtra: 51% consent for housing society redevelopment now
It had slashed consent for redevelopment of old, dilapidated cessed buildings, as also for slum
rehabilitation projects and smaller societies by bringing in an amendment to Maharashtra
Apartment Ownership Act (MAOA) in 2017.
To ease redevelopment of cooperative housing societies, the state government has reduced the consent
required from 70% to 51%.
It had slashed consent for redevelopment of old, dilapidated cessed buildings, as also for slum
rehabilitation projects and smaller societies by bringing in an amendment to Maharashtra Apartment
Ownership Act (MAOA) in 2017. The government resolution (GR) issued on Thursday by co-
operation department is applicable to cooperative housing societies. There are nearly one lakh
societies in Maharashtra, mostly in Mumbai and Thane.
"The decision was taken to ensure that redevelopment of housing societies can be expedited. Many
societies' redevelopment is stuck due to the developer not getting 70% consent. This will make the
process faster," said an official. But experts said it could go against residents and it was a pro-builder
move. They said it could lead to more litigation. "It could lead to more litigation as the number of
disgruntled members will be more. The 51% consent may lead to making the minority group more
vulnerable, giving the developer a free run,'' said advocate Manoj Shinde.
The GR also said that the developer should deposit 20% of the total project cost with the society and
should complete it in three years.
________________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/maharashtra-51-consent-for-housing-society-redevelopment-now/70103136
Page 7 of 30
Land titling bill to be introduced in winter session of Maharashtra
assembly
The land title bill was supposed to ensure greater transparency in all land transactions.
The much-awaited land titling bill, cleared by the Maharashtra state cabinet, will now be passed in the
winter session of the state assembly, official sources said.
The bill was cleared by the cabinet but because of some technical issues it has been pushed to the next
session. Officials stated that the bill will have to be re-introduced before the house in the winter
session.
The land title bill was supposed to ensure greater transparency in all land transactions.
The bill proposes to make all land title records available in one office with the coordination of the
property registration department as well as the revenue department.
By bringing all records pertaining to immovable properties currently available with different agencies
— registration department, survey and land records — under one office, the government wants to
make it easier for citizens to access the information.
Pilot projects can be rolled out in the districts once the proposal for the Maharashtra Land Titling
Act is cleared but now it will have to wait, stated officials.
The Act will provide a single-window mechanism for authentication of land titles. At present, it is left
to an individual to ascertain the title of a property. Under the proposed system, the title registration
officer will carry out the process of preparation, maintenance and updating of the title register,
officials said.
State settlement commissioner and director of land records, S Chockalingam, who was instrumental in
pursuing this initiative, said it would enable ease of doing business and bring about transparency in
the process but now it will be re-introduced in the coming session.
_______________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/land-titling-bill-to-be-introduced-in-winter-session-of-maharashtra-assembly/70100880
Page 8 of 30
Delhi HC to hear builders' plea to bar buyers from approaching
consumer forums
While admitting the two cases, a single judge bench of Justice Yogesh Khanna had issued
notices to the respondents and the court is scheduled to hear the cases on Monday.
In yet another effort to bar homebuyers from approaching consumer forums to seek refund or
compensation in delayed incomplete projects, two builders have approached the Delhi high court
pleading that complaints relating to ongoing projects should only be referred to the Real
Estate RegulatoryAuthority (RERA) and not to consumer forums.
While admitting the two cases, a single judge bench of Justice Yogesh Khanna had issued notices to
the respondents and the court is scheduled to hear the cases on Monday. The HC had put proceedings
before the National Consumer Disputes Redressal Commission(NCDRC) on hold.
In both cases, the NCDRC has decided in favour of the buyers and the builders have challenged them
in the HC.
The two builders — Today Homes & Infrastructure Ltd and Ramprastha Promoters & Developers Pvt
Ltd — have asked whether NCDRC or any other consumer fora are ―precluded‖ from dealing with the
grievances of the customers of ―ongoing projects‖ which fall under RERA. The law came into force
from May 1, 2017, and it specifies that RERA provisions are applicable to all incomplete or ongoing
projects across the country.
The petitioners have submitted that Section 71 of RERA says if a complaint is pending before any
consumer fora, then the consumer with the permission of the forum ―may‖ withdraw the pending
complaint and ―may‖ file an application before the real estate regulator. They have submitted that
Section 79 of the Act bars jurisdiction of courts to entertain any compliant after the Act has come into
force. They have pleaded that since in both the cases the complaints against builders were filed before
NCDRC after the law came into force, the commission had no jurisdiction to entertain them.
Earlier, some state government-appointed real estate regulators had suggesting barring homebuyers
from approaching consumer forums to seek compensation and refund. They had claimed that
consumer forums were more liberal in ordering refund, which jeopardised the chance of completing
projects.
Newspaper/Online ET Realty (online)
Date July 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-hc-to-hear-builders-plea-to-bar-buyers-from-approaching-consumer-forums/70121233
Page 9 of 30
However, despite such demands, the Union cabinet has included ―real estate‖ as a service under the
proposed Consumer Protection Bill. This enables homebuyers to approach consumer forums.
Abhay Upadhyay of Fight for RERA, an NGO that campaigned for passage of the law, said all
sections of RERA were discussed at length by Bombay high court which heard the matter on direction
of Supreme Court when builders challenged its constitutional validity. ―This is now settled that
Section 71 only provides option to complainant to withdraw its complaint and file it before RERA and
it is not a mandatory provision. Section 79 only bars civil courts and not consumer forums,‖ he added.
______________________________________________________________________________
Page 10 of 30
Pune wall collapse: Magisterial remand for Kanchan Group partners
A total of 15 construction workers and their family members were killed after the retaining wall
of Alcon Stylus caved in on eight huts at an under-construction site of Kanchan Group project,
Royal Exotica, on June 29.
The Pune cantonment court on Saturday sent two partners of a realty firm, who were arrested in
connection with the wall collapse in Kondhwa, in magisterial custody remand for 14 days.
A total of 15 construction workers and their family members were killed after the retaining wall of
Alcon Stylus caved in on eight huts at an under-construction site of Kanchan Group project, Royal
Exotica, on June 29.
The Kondhwa police had arrested partners Vivek Agarwal (32) and Vipul Agarwal (30) under
sections 304 (culpable homicide not amounting to murder) and 34 (common intention) of the IPC.
Police later invoked sections 308 (attempt to commit culpable homicide) of the IPC and 3 (2), (L), 2
(m) and 13 (1) of the Maharashtra Ownership Flat Act in the FIR registered against the
builders/developers/partners of Alcon Landmarks and Kanchan Group, and others.
The Agarwal brothers were produced before the court after their police custody remand ended on July
6. The police filed a remand report for seeking extension of their custodial remand for four days on
the grounds that they were involved in serious crime. The prosecution told the court that their
custodial interrogation was essential to arrest others on the run.
Opposing the prosecution plea, defence lawyer Sanjay Agarwal told the court their custodial
interrogation was not essential as the court had given sufficient time to police to conduct investigation
since their arrest on June 29. After hearing both sides, the court sent them to magisterial remand. The
Agarwal brothers are expected to file bail plea at sessions court on Monday.
_________________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-wall-collapse-magisterial-remand-for-kanchan-group-partners/70112168
Page 11 of 30
Kolkata civic body needs more building demolition squads
According to the practice prevalent in the KMC buildings department, every time a dilapidated
building collapses, department officials send an SOS to a private contractor for demolition of
the insecure parts.
The recent death of a demolition worker of a private agency engaged by the KMC buildings
department to raze an insecure building in a north Kolkata locality has prompted the civic brass to
create a building demolition cell of its own.
According to the practice prevalent in the KMC buildings department, every time a dilapidated
building collapses, department officials send an SOS to a private contractor for demolition of the
insecure parts. Apart from demolishing insecure buildings, the contractor needs to pull down illegal
buildings from time to time.
The overstressed demolition contractor has been reeling under severe manpower shortage and lack of
modern equipment. ―The time has come to set up our own demolition squad borough-wise to get rid
of hassles,‖ said a KMC buildings department official.
Last week, senior officials of the department had taken stock of a number of rickety buildings as the
monsoon has set in and a section of such buildings carry the risk of collapse due to heavy rain. ―We
have spotted many wobbly buildings in six boroughs and have asked the borough officials to keep a
constant watch on these buildings through the monsoon. We need to pull down some badly damaged
parts of some of these buildings right now to save lives,‖ said a KMC building department official.
Some of these buildings that need immediate demolition are located in areas like Cossipore, Paikpara,
APC Roy Road, MG Road, Chittaranjan Avenue, Chitpore, Burrabazar, Bhowanipore, Metiabruz,
Rashbehari Avenue and Tollygunge, among others.
However, a section of civic officials feel the absence of multiple demolition squads will make it an
uphill task for the buildings department to pull down insecure structures in case of collapses. A KMC
official recalled that the private demolition squad had to pull down as many as 10 structures in three
days last monsoon. ―It is indeed a tough task and we should set up demolition squad in each borough
to prevent disasters,‖ a civic official said. A past proposal for setting up demolition squad for every
borough had remained on paper.
_____________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/kolkata-civic-body-needs-more-building-demolition-squads/70103295
Page 12 of 30
NGT slams inaction against illegal buildings in South Delhi
According to a status report filed by Mehrauli SDM, the encroachment removal drive was to
start on August 10, 2017, however it stated that around 3,000 people have encroached the forest
land which is creating difficulty.
The National Green Tribunal (NGT) has rapped the AAPgovernment over its inaction against
unauthorised constructions in south Delhi's Jaunapur and Dera Mandiforest areas. The tribunal said
that despite a December 2015 order, which directed removal of illegal constructions in the Ridge
areas, no action had been taken.
According to a status report filed by Mehrauli SDM, the encroachment removal drive was to start on
August 10, 2017, however it stated that around 3,000 people have encroached the forest land which is
creating difficulty. A bench headed by NGT chairperson Adarsh Kumar Goel said the tribunal could
not be stalled by a counsel who is not available when the case is taken up.
________________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ngt-slams-inaction-against-illegal-buildings-in-south-delhi/70102324
Page 13 of 30
Kochi flat demolition: Outrage grows against builders, erring officials
Builders, with the aid of local body officials, went ahead and constructed these structure despite
pending legal disputes. Most flat owners are of the view that they were kept in the dark about
these developments.
On Friday, the Supreme Court bench headed by Justice Arun Mishra– which had ordered demolition
of flats in Kochi for violating CRZ guidelines – disapproved a vacation bench‘s order staying the
demolition for six weeks. Now, there is a growing demand on social media to act against the builders
who executed the project and local body officials who issued permits.
―The then secretary of Maradu panchayat (now municipality) is responsible for issuing approvals and
building permits despite the violation of CRZ norms. State government should initiate disciplinary
action against the erring official,‖ said advocate Harish Vasudevan. In case other officials are
involved in giving sanctions to these structures, they too should also face disciplinary action.
Builders, with the aid of local body officials, went ahead and constructed these structure despite
pending legal disputes. Most flat owners are of the view that they were kept in the dark about these
developments.
Meanwhile, Vasudevan said the district collector can approach the chief judicial magistrate (CJM)
with a chargesheet stating it has been found that builders or companies have constructed these
buildings violating CRZ norms and the Supreme Court has ordered their demolition. ―Legal
proceeding can be initiated under Section 19 of Environment Protect Act. If found guilty, CJM can
slap jail terms or fine,‖ he said.
Former chairman of Kerala State Biodiversity Board VS Vijayan said that flat owners should be given
compensation. ―The compensation should be raised from those who issued permits and others who
constructed the structure. They are responsible for this CRZ violation. There is a need to execute the
SC order as it will send a strong message to government officials and builders who violate
environment norms,‖ he said.
When flat owners – through senior advocate Ajith Kumar Sinha –requested a vacation bench of
Justices Arun Mishra and MR Shah to extend the deadline for demolition of flats so that they can
make alternative arrangements, the bench dismissed it saying, ―You (flat owners) can move
appropriate forum to claim compensation against the builders.‖
Newspaper/Online ET Realty (online)
Date July 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/kochi-flat-demolition-outrage-grows-against-builders-erring-officials/70112271
Page 14 of 30
However, Vasudevan said that seeking compensation from builders will remain a tough task under
existing norms. ―There will be a need to check the clauses in the agreement made between the buyer
and the builder,‖ he said.
Meanwhile, sources within the district administration said that collector S Suhas is keenly studying
the issues related to Maradu apartments. ―It is learnt that the collector has spoken to his predecessor
about the issue and the SC order,‖ said the source, adding that he would soon take a decision.
______________________________________________________________________________
Page 15 of 30
Talegaon Dhabade civic body to conduct structural audit of old
buildings
The move follows two wall collapses in Kondhwa and Ambegaon, which claimed 21 lives.
The Talegaon Dhabade Municipal Council (TDMC) on Saturday directed developers to conduct
structural audit of 30-year-old and above buildings and submit the report within a fortnight.
The move follows two wall collapses in Kondhwa and Ambegaon, which claimed 21 lives. ―There are
several old structures, mainly in the old areas of the town, which were constructed in 1990‘s.
Therefore, it is necessary to carry out structural audit of these buildings for ensuring safety of the
residents,‖ chief officer Vaibhav Avare Aware of TDMC told TOI.
―Earlier, we had sent notices to the residents of old structures to vacate them, which failed to evoke
any positive response. This monsoon again, we have again sent notices, urging them to vacate these
structures,‖ Aware said.
As per TDMC records, there are over 100 dilapidated structures in its limits. ―Due to consistent
political interference and lack of support from elected members, we could not launch any eviction
drive in the past. We have categorically informed people that if any tragedy takes place, the TDMC
will not be held responsible,‖ a civic official said.
_______________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/talegaon-dhabade-civic-body-to-conduct-structural-audit-of-old-buildings/70112193
Page 16 of 30
Chandigarh housing board to hold another outstanding rent collection
campaign
Last month, the authorities had organised special camps for 10 days and collected Rs 6.5 crore
from 2,300 defaulters.
The authorities of Chandigarh Housing Board have decided to organise a three-day campaign (from
July 10 to July 12) at various locations in the city to collect outstanding rent from defaulting owners
of small flats.
The authorities said they had to collect more than Rs 20 crore in outstanding from the defaulters. The
camps will be organised between 8 am and 1 pm on the aforementioned dates.
Last month, the authorities had organised special camps for 10 days and collected Rs 6.5 crore from
2,300 defaulters.
The camps were set up at seven locations in Chandigarh - Dhanas, Ramdarbar, Maulijagran, Sector 38
West, Sector 49, Sector 56 and Industrial Area Phase I.
Chandigarh Housing Board has issued final showcause notices to 250 allottees and first-time notices
to 6,000 allottees, who have failed to clear their dues.
They have been given 15 days to clear the outstanding amount, failing which allotments will be
cancelled and eviction process will be initiated.
The detail of outstandings against each allottee/licensee of small flats is available on
www.chbonline.in.
In case there is any discrepancy, dispute, the allottee/licensee may pay the admitted outstanding dues
and contact the colony branch at the office of Chandigarh Housing Board (Recovery Section, Block
'C') along with the proof of payment for reconciliation.
______________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-housing-board-to-hold-another-outstanding-rent-collection-campaign/70100988
Page 17 of 30
SC issues notice after Maharashtra challenges HC order for demolition
of lakhs of illegal construction
The SC will hear both sides after six weeks now but in the meantime the state’s special counsel
Anil Sakhare told the SC that it won’t be taking any action of demolition till then.
Maharashtra government on Friday said occupants in lakhs of illegal structures built on government
land or lands reserved under the Development plan (DP) across state would face demolition by a
Bombay high court and sought a stay from the Supreme Court. The SC bench headed by Chief
Justice Ranjan Gogoi and comprising Justices Deepak Guptaand Aniruddha Bose admitted the state‘s
special leave petition (SLP) and issued notice on its plea for interim relief of stay of the HC order.
The SC will hear both sides after six weeks now but in the meantime the state‘s special counsel Anil
Sakhare told the SC that it won‘t be taking any action of demolition till then.
The stay, was earlier refused by the HC. The SC order of issuance of notice to original petitioners who
had filed public interest litigation (PIL) against the new law, comes as a huge relief to occupants of
such unauthorised structures.
The state legal team of Sakhare, Nishant Katneshwarkar and Rohan Mirpuri sought the interim relief
as it said regularisation specifically was provided by the new amendment.
The HC had last November read down a provision added by the state in 2017 by introduction of
section 52A under the MRTP Act, to mean that regularization was impermissible and directed
identification and demolition of all such illegal structures across Navi Mumbai, CIDCO and MIDC
areas.
A PIL filed in HC had challenged the validity of new section 52A of the Maharashtra Regional and
Town planning Act, 1966 which provides for enbloc regularization of a very large number of illegal
structures built in Maharashtra on or before December 31, 2015.
If there is illegal construction on government land or a plot reserved under the DP, those construction
prior to introduction of section 52 A could not be regularized but the amendment under section 52 A
provided a special ‗non obstante‘ clause which said with a no objection certificate (NOC) from a
concerned department or by shifting the original reservation, constructions could be regularized.
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-issues-notice-after-maharashtra-challenges-hc-order-for-demolition-of-lakhs-of-illegal-construction/70100669
Page 18 of 30
Such ‗non obstante clause is usually used to indicate that its provision should prevail over any other
contrary provision in law.
The HC had directed CIDCO, MIDC and Navi Mumbai Municipal Corporation to carry out a survey
within their respective jurisdictions as Planning Authorities for identifying and locating the total
number of illegal constructions. The survey was to be done in a year.
The first report of quarterly reports sought on demolition was to be submitted on March 31, 2019.
The HC judgment by Justice Abhay Oka in November 2018 had even quoted Socrates to say, 'By far
the greatest and most admirable form of wisdom is thatneeded to plan and beautify cities and human
communities' and accepted argument that the new law would defeat the very concept and purpose of
town planning.
The HC judgment, had significantly said, ―We hold that section 52A of the MRTP Act shall be read
down to mean that non obstante clause in subsection (1) of section 52A does not enable the Planning
Authorities or the State Government to compound unauthorized developments which are contrary to
the provisions of the Development Plans/Regional Plans under the MRTP Act and the Development
Control Regulations framed under the MRTP Act. Hence, by exercising the power undersection 52A,
unauthorised development which is contrary to the provisions of the Development Plans/Regional
Plans under the MRTP Act and the Development Control Regulations framed under the MRTP Act
shall not be declared as a compounded structure (regularised).‖
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Page 19 of 30
Housing ministry gets Rs 48,000 crore in Budget 2019, sees about 12%
hike
The Pradhan Mantri Awas Yojana (Urban) has been given Rs 6,853.26 crore as against Rs 6,505
crore in 2018-19.
The Housing and Urban Affairs Ministry's budgetary provisions were pegged at Rs 48,000 crore in the
Union Budget 2019-20, a hike of nearly 12 per cent from 2018-19.
The Pradhan Mantri Awas Yojana (Urban), an ambitious programme of the Modi government, has
been given Rs 6,853.26 crore as against Rs 6,505 crore in 2018-19.
There has been an increase of nearly 25 per cent in the allocation to metro projects across the country.
A sum of Rs 17,713.93 crore has been allocated in this regard in the Budget against Rs 14,864.60
crore in 2018-19.
"Under the Pradhan Mantri Awas Yojana (Urban), over 81 lakh houses with an investment of about
Rs 4.83 lakh crore have been sanctioned of which construction of about 47 lakh houses has started,"
Finance Minister Nirmala Sitharaman said.
"Over 26 lakh houses have been completed of which nearly 24 lakh houses delivered to the
beneficiaries," she said.
The Delhi Metro Rail Corporation (DMRC) has been given Rs 414.70 crore grant as against Rs 50
crore in 2018-19.
The government has set aside Rs 19,152 crore for the Mass Rapid Transit System (MRTS) as against
the previous financial year's budgetary allocation of Rs 15,600 crore.
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, which aims at
ensuring robust sewage networks, water supply and other infrastructure to improve the quality of life
in urban areas, has been given Rs 7,300 crore. The allocation was Rs 6,400 crore in 2018-19.
The Smart Cities Mission, under which the government has selected 100 cities, has been granted Rs
6,450 crore as against Rs 6,169 crore in the 2018-19 financial year.
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/housing-ministry-gets-rs-48000-crore-in-budget-2019-sees-about-12-hike/70100582
Page 20 of 30
Allocation to another flagship programme of the government, Swachh Bharat Mission, has been
increased to Rs 2,650 crore from Rs 2,500 crore in the previous financial year.
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Page 21 of 30
Nagpur: Mhada took Rs 118 crore 5-7 years ago, yet to hand over flats
As per the CAG report, Mhada started construction of High Income Group (HIG) Housing
Project with 320 flats at Empress Mill land on Subhash Road, Ganeshpeth, in December 2010 at
a cost of Rs56.08 crore.
Around 5-7 years ago, 314 people purchased flats from Nagpur board of Maharashtra Housing and
Area Development Authority (Mhada) by paying a whopping Rs 118.33 crore but are yet to get
possession of the flats. Left with no option, around 50 people have started to reside in the flats after
completing remaining works at their own expense.
The Comptroller and Auditor General of India (CAG) audit report submitted in the state legislature on
the concluding day of budget session on July 2 rapped Mhada for not giving possession of flats
despite recovering payments 5-7 years ago.
As per the CAG report, Mhada started construction of High Income Group (HIG) Housing Project
with 320 flats at Empress Mill land on Subhash Road, Ganeshpeth, in December 2010 at a cost of Rs
56.08 crore. ―Tenements were not handed over to the beneficiaries since Occupancy Certificate (OC)
was not obtained from Nagpur Municipal Corporation (NMC). The board applied for OC in March
2014 but was not given it for lack of environment clearance (EC). The board obtained EC in April
2017. EC made construction of sewage treatment plant (STP) mandatory, which the board is yet to
take up,‖ CAG said.
In reply to CAG, Mhada said the EC was not initially applicable to the project. ―EC became
mandatory following a notification of April 2011. And, condition of STP came up in April 2017,‖
Mhada said.
Finding Mhada‘s reply not tenable, CAG said NMC refused OC over pending EC, which was
mandatory as per notification dated September 2006. ―The failure on the part of Mhada to obtain EC
and install STP has resulted in denial of tenements to beneficiaries despite payment of sale price,‖
CAG said.
The CAG report notes Mhada is yet to give possession of all flats. A visit to the project, however,
revealed people residing in some 50 flats. The road connecting the flat scheme to Subhash Road is
incomplete. There are no whereabouts of commercial complex, podium garden, open spaces,
swimming pool, club house etc. Water can be seen accumulated in parking area in the basement and
ground floor. Sewage is leaking from pipelines and accumulated in parking area.
Secretary of one of the two housing societies Ramesh Londhe told TOI Mhada is yet to give the
Newspaper/Online ET Realty (online)
Date July 08, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/nagpur-mhada-took-rs-118-crore-5-7-years-ago-yet-to-hand-over-flats/70121271
Page 22 of 30
registered sale deed. ―Mhada should have invited applications after completion of all works. But
applications were invited in 2012 with assurance to give possession in December same year. We made
payments as we did not want to lose the chance to own flat at such a location. There are no basic
amenities. Around 50 people are occupying the flats. They were paying rent elsewhere and also
installment for housing loans. They completed interior electrification and water works on their own,‖
he said.
Londhe said the two societies are also executing maintenance works with the help of contribution of
flat owners. ―Half of the lifts are not operational. There was no drinking water supply and we got it
recently from NMC after hard efforts. Also, quality of all types of works is suspect. Flat buyers have
approached various legal forums demanding compensation and immediate possession,‖ he said.
Mhada has also not completed works on fire systems, and not obtained fire compliance certificate.
Mhada chief officer Sanjay Bhimanwar said no possession of flats has been given till date. ―We have
completed physical works. Process to get fire compliance is underway. Project got delayed due to EC.
Also, works were completely halted for 2-3 years,‖ he said.
Shockingly, Mhada had planned the project in 2003. Work to build 320 flats was given to a private
company in 2010 with a deadline of two years.
INFO
Project: Purchased 7.75 hectare Empress Mill land for Rs 24.13 crore in September 2003. Housing
project with 500 flats planned with 320 in phase-I and 180 in phase-II along with a commercial
complex. It was approved in 2005. Private company appointed for 320 flats in 2010 with deadline of
two years. Works yet to be completed. Works on phase-II started some months ago
Flats: 220 flats are 3 BHK measuring 103-225 sq m and costing Rs 40-65 lakh. 100 flats are 2-BHK
measuring 74-173 sq m and costing Rs 26-43 lakh
Delay: Mhada was to invite applications after completion of works. But applications were invited in
2012, Rs 118.33 crore payment taken from 314 people. Possession assured in December 2012 but not
yet given. Sale deeds too still awaited. Around 50 people residing in flats for last 1-2 years
Problems: Contractor failed to complete works. Mhada took environment clearance very late, in 2017,
after NMC asked for it. Mandatory STP as per EC yet to be constructed. Fire compliance certificate
awaited. Work on podium garden, swimming pool, club house, commercial complex etc yet to begin.
Flat owners allege interior works of inferior quality. Road works also not completed.
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Page 23 of 30
Flats with imported tiles, bath fittings to cost up to Rs 5 lakh more in
Lucknow
According to experts, these imported items are generally used in high-end houses costing more
than Rs 50 lakh. Buyers of these properties prefer luxury fittings and furniture.
High-end apartments and row houses in the city are set to become more expensive with the decision of
the finance minister to impose 5% customs duty on imported tiles, marble, metal fittings, furniture and
windows. The impact will mean escalation in the cost of around 2,800 high-end flats and bungalows
under construction in the city.
According to experts, these imported items are generally used in high-end houses costing more than
Rs 50 lakh. Buyers of these properties prefer luxury fittings and furniture. The cost of imported tiles,
marbles, furniture, windows and bathroom fittings is around 40% of the total cost of the house,
depending on the quantity and quality of the products used. The overall cost of such under-
construction houses can now go up by up to Rs 5 lakh.
Prakhar Khanna, a government employee, said, ―My 4BHK house is under construction
in Gomtinagar Extension. I was planning to get Italian marble flooring in my house. However, now I
have decided to drop the idea because imposition of customs duty will increase the prices, taking them
beyond my budget.‖Businessman Jatin Krishna said, ―My family and I were planning to purchase
imported furniture, but won‘t be able to now as the increase in taxes has taken the price out of my
reach."
According to officials of Lucknow Development Authority, more than 1,200 highend flats being
constructed by it will be affected by the decision. Flats with total area of 1,200 sq ft or above made for
higher income group (HIG) buyers will now see an increase in price.
Confederation of Real Estate Developers Association of India (Lucknow Chapter) told TOI that as
many as four big private projects coming up in Chinhat and Matiyari and on Dewa Road and Sitapur
Road with around 1,600 flats in them will see a 5% increase in the principle amount.
The budget of underconstruction government and private buildings to be used as offices or for other
commercial purpose would also go up, experts said.
_______________________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/flats-with-imported-tiles-bath-fittings-to-cost-up-to-rs-5-lakh-more-in-lucknow/70112316
Page 24 of 30
Karnataka is fifth in Smart City implementation: U T Khader
Speaking at the DC office here on Friday, Khader said the government was taking steps to
increase the pace of works and enter the top three in the next six months.
Urban development minister UT Khader refuted allegations of the opposition that the state
government was purposely delaying Smart City works. He said the state was at the fifth place in the
country in implementing the project.
Speaking at the DC office here on Friday, Khader said the government was taking steps to increase
the pace of works and enter the top three in the next six months.
The minister said the Smart City Project was delayed due to tough rules and procedures of the Union
government. ―Initially, objection by MLAs and MPs for excluding them from the Smart City
committee also caused delays. Under this project, both the state and centre contribute Rs 100 crore for
the development of cities,‖ he said.
"It is a myth that cities will get smart just by the Rs 500 crore contribution of the Centre in five years.
In cities like Bengaluru, works of over Rs 3,000 crore are ongoing on behalf of the state government
and situation is similar in most cities,‖ he added.
Khader said the project of providing 24X7 water to entire Belagavi at a cost of Rs 420 crore will start
in the next three months by floating a tender notification.
He said the district has a good source of water and only needs to strengthen the supply chain.
Stating that the government has taken several measures to increase the income of urban local bodies
including computerization of property records, which Khader said had brought more than 9,000
properties under the tax net just in Belagavi City Corporation limits.
Khader warned builders of taking strict action against the illegal constructions. ―Many constructions
are coming up without any layout or sites and it is unacceptable. We will take strict action against
those engaged in constructing buildings at non-NA sites on the outskirts of Belagavi,‖he said.
When asked about illegal commercial activities at basements of buildings in the main market which is
causing traffic problems, the minister said he would check the facts with officials. He said the
government can‘t vacate such establishments suddenly without following proper procedure. Apart
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/karnataka-is-fifth-in-smart-city-implementation-u-t-khader/70103191
Page 25 of 30
from infrastructure development, there is also a need for making Belagavi as a safe city, he added.
Minister identifies substandard work
Khader found the quality of the gym being built at Ashok Nagar to be substandard during an
inspection of ongoing works in the city on Friday. The minister said the building had many leaks and
that water was seeping into its walls.
He instructed officials not to pay the contractor until proper work is done.
Khader also inspected the badminton court and swimming pool being built under the Smart City
Project on the same premises.
He directed officials to consider developing a football stadium as the available space was huge. Later,
he inspected the ongoing work of KPTCL Road in Shivbasav Nagar.
During a review meet of Smart City works, Khader suggested officials to install vigilance cameras
and speakers on the roadsides in the city to make Belagavi a smart and safe city. He said people will
be able to see Smart City works on four LED TVs to be installed at different parts of the city at a cost
of Rs 70 lakh.
Belagavi rural MLA Laxmi Hebbalkar, Belagavi North MLA Anil Benake, former MLA Firoz Sait
and Belagavi City Corporation commissioner Shashidhar Kurer accompanied him.
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Page 26 of 30
With tunnelling to begin soon, Bengaluru Metro Rail Corporation takes
steps to ensure building safety
Data sourced by TOI revealed that 19 buildings developed cracks during Phase 1.
With giant tunnel boring machines (TBMs) set to drill and cut through the underbelly of Bengaluru‘s
commercial areas, the Bangalore Metro Rail Corporation (BMRCL) is taking preventive measures to
reduce any damage to buildings.
Data sourced by TOI revealed that 19 buildings developed cracks during Phase 1. Of these, 18 cases
were reported during the construction of Green Line, particularly the underground sections
between Sampige Road and KR MarketMetro stations.
It was also found that BMRCL paid Rs 2.8 crore compensation to owners of the 19 buildings for the
damage. Landmark buildings like Vani Vilas Hospital and Victoria Hospital had developed cracks
during the construction of Phase 1. In February 2018, a building near Ragigudda tilted during work on
the upcoming Yellow Line.
Allaying fears, a senior BMRCL official said they are taking steps to prevent any damage to
buildings, particularly during the tunnelling work.
―We‘ve begun a pre-building condition survey of buildings within the influence zone of work,
especially along the city‘s longest underground Metro corridor between Dairy Circle and Nagawara
(14km). We‘re carrying out ground improvement by advance surface grouting along the alignment
and also undertaking structural supporting and bracing for structurally unsafe buildings. We have
formed a round-the-clock monitoring team for tunnelling work,‖ he added.
The official said they are using devices like crack meter, tilt meter, seismograph, surface settlement
marker (pavement/soil) and building settlement point to monitor vibrations during construction.
There are also concerns regarding safety of old and weak structures in areas like Shivajinagar,
Tannery Road and Pottery Town. In fact, members of 150-year-old All Saints Church were worried
that vibrations caused by underground tunnelling may affect the building.
Structural experts said underground construction causes vibrations that penetrate the surface and
affect weak structures. ―Underground construction involves a lot of vibration. So if a building has
cracks, they could widen. Houses are built with concrete, brick and mortar. So if you are trying to
Newspaper/Online ET Realty (online)
Date July 06, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/with-tunnelling-to-begin-soon-bengaluru-metro-rail-corporation-takes-steps-to-ensure-building-safety/70102383
Page 27 of 30
cause any movement, it becomes difficult for the material to handle and as a result, it cracks,‖ said an
expert.
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Page 28 of 30
No agency keeping count of construction site deaths in Pune
Also, based on official interactions, it is evident that each of the agencies depends on somebody
else and none of them has an independent mechanism to collect data.
There is no single agency — the police, the labour department or Credai, the industry body — keeping
a record of the number of people killed in accidents at construction sites. As a result, the data is both
inadequate and confounding.
While the labour department in Pune has filed prosecutions in 27 cases involving 60 worker deaths in
the past 3.5 years, Nitin Pawar, the general secretary of the Bandhkam Mazdoor Sabha, said number
of worker deaths per year easily crosses the 100-mark in the PMRDA region alone. ―Every month,
about 8-10 deaths are reported in newspapers,‖ he said.
Also, based on official interactions, it is evident that each of the agencies depends on somebody else
and none of them has an independent mechanism to collect data. This, experts feel, hinders policy-
making and a systematic effort to curb construction-related deaths.
The labour office depends on data collected from reported accidents, police FIRs, newspaper clippings
and information received from non-governmental organisations (NGO). However, construction work-
related deaths are often under-reported.
―Many developers do report accidents. Some don‘t. It is, however, mandatory,‖ said Vikas Panvelkar,
deputy labour commissioner of Pune.
The labour department has, of late, taken some steps to get more workers registered. ―The
registrations require the worker to be working at a site for 90 days, have a bank account and an
Aadhaar number for direct benefit transfer,‖ said Panvelkar.
Most agencies, however, focus on providing benefits like education, health, social security benefits to
the workers and their families. Much of the labour department‘s spend has been on this and little
money has been allocated to safety. Even Maharashtra building and construction worker‘s welfare
board and Credai-Kushal focus on skilling. Satish Magar, a member, said the board‘s role was limited
to workers‘ welfare and not to monitor safety procedures.
Newspaper/Online ET Realty (online)
Date July 07, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/no-agency-keeping-count-of-construction-site-deaths-in-pune/70112346
Page 29 of 30
Infrastructure key to $5-trillion goal
For financing the infrastructure sector, Credit Guarantee Enhancement Corporation will be
set-up in 2019-20
Finance minister Nirmala Sitharaman presented her first budget outlining the vision for achieving a $5
trillion economy by 2024-25, driven by investments. The push for investments will be from the
infrastructure sector, in particular roads, railways, airports and inland waterways, through higher
government and private investments.
For financing the infrastructure sector, Credit Guarantee Enhancement Corporation will be set-up in
2019-20. Affordable housing, too, will benefit under Pradhan Mantri Awaas Yojana (PMAY) and tax
incentives.
―Make in India‖, too, got a boost with the likely rationalisation of labour laws into four codes.
For MSMEs, the finance minister has raised the ceiling of 25 per cent tax rate to a revenue of Rs 400
crore (Rs 250 earlier) and introduced a platform to discount bills. This should ease the liquidity for
MSMEs.
For incentivising domestic production, custom duties have been increased selectively. In line with the
ambition of a cleaner and greener India, customs duties on E-vehicles have been reduced and tax
deduction on interest paid on such loans has been introduced.
The minister also outlined the need to bring in a new education policy. For the real estate sector, a
model tenancy law will be circulated to the states.
In order to kickstart growth, the finance minister has allocated Rs 70,000 crore to recapitalise Public
Sector Banks (PSBs), which will boost credit delivery in the economy. For increasing liquidity to
NBFCs, the government will provide one-time partial credit guarantee to PSBs for first loss up to 10
per cent. Given the inter-connectedness between NBFCs, HFCs and banks, HFCs will now be under
the supervision of the Reserve Bank of India.
On the revenue front, the finance minister‘s revenue assumptions are quite realistic. Given the
difference between actual tax collections in 2018-19 and interim budget estimates, markets were
worried about fiscal slippage in the year.
Newspaper/Online The Telegraph
Date July 08, 2019
Link https://www.telegraphindia.com/business/union-budget-2019-infrastructure-key-to-5-trillion-goal/cid/1694024?ref=business_business-page
Page 30 of 30
Tax revenues are now estimated at Rs 24.6 lakh crore in 2019-20 compared with Rs 25.5 lakh crore in
the interim budget. Income tax and GST collection target for 2019-20 has been pared down, in line
with GST collections in the first two months of the year. At the same time, revenue from customs and
excise duties has been revised upwards on the back of higher custom duties and excise duty/ cess on
petrol and diesel (Rs 2/litre).
While the Centre‘s tax revenue target for 2019-20 has been reduced by Rs 55,500 crore (from the
interim budget), the non-tax revenue target has been revised upwards by Rs 40,500 crore as the
government now expects a higher income from dividends, railways and the 5G auction.
Disinvestments receipts are now expected at Rs 1.05 lakh crore in 2019-20 compared with an earlier
target of Rs 80,000 crore since the government has decided to reduce the shareholding in non-
financial undertakings to less than 51 per cent on a case-by-case basis.
On the expenditure side, the budget has more or less retained the estimates of the interim budget. The
agriculture sector has got the maximum boost followed by health and education.
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