22-August-2019 - Credai Bengalcredaibengal.in/wp-content/uploads/2019/08/22Aug19... · 8/22/2019 · Amrapali Princely Estate is likely to be the next set of apartments lined up

22-August-2019

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CREDAI Bengal Daily News Update | 22.08.19

Lavasa City project gets Rs 540 crore bid

Pune-based City Corporation Ltd. led by Aniruddha Deshpande has placed a Rs 540-crore bid

to take over the ailing project.

The bankrupt Lavasa Corporation Ltd (LCL), which owns the controversial hill station project Lavasa

City near Lonavala, has finally got a buyer.

Pune-based City Corporation Ltd. led by Aniruddha Deshpande has placed a Rs 540-crore bid to take

over the ailing project.

In August last year, the National Company Law Tribunal (NCLT) had accepted a petition by the

creditors of LCL to declare the company bankrupt, and appointed a resolution professional to find

resolution to the financial crisis being faced by the LCL.

However, till June, the resolution professional, Shiv Verma, had not received any bid for taking over

the project. Although one Mauritius-based company, and a few builders in the state had shown interest

in the project, but they did not submit any concreate resolution plans.

As per company‟s website as on April 30, the company owed Rs 5,559.14 crore to financial creditors,

and around Rs 400 crore to property buyers in the project.

If the resolution plan submitted by Deshpande is accepted by the committee of creditors, then the

financial creditors will have to take haircut of nearly 90 per cent.

Launched in the early part of the last decade, the Lavasa City project has been marred with

controversies since its beginning. There were controversies over the way the project was granted land

and other permissions by the state government.

Other controversies related to the way it was given a status of a special planning authority (SPA), and

allowed to construct a barrage for water supply to Lavasa City. Permissions for cutting of hills for

construction of roads and residential and commercial properties were also questioned.

In fact, in 2010, the then Union environment minister Jairam Ramesh imposed a moratorium on

construction activity in the Lavasa City. The moratorium was lifted in 2012. Multiple PILs were filed

in the Bombay High Court over alleged environmental violations and acquisition of land from tribals.

Interestingly, Deshpande owned a stake in the project in its initial phase around 2002 along with NCP

Newspaper/Online ET Realty (online)

Date August 22, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/lavasa-city-project-gets-rs-540-crore-bid/70779528

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MP Supriya Sule‟s husband Sadanand Sule. However, the two exited the project in 2007.

Mirror‟s email to resolution professional Verma for comment remained unanswered till the time of

going to press. A text message and phone calls to Deshpande also remained unanswered.

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Institutional investments into real estate triples during 2014-18: Report

Investments into Indian real estate have more than tripled to Rs 140,000 crore.

Institutional investors‟ appetite for Indian real estate has been growing in the backdrop of series of

reforms undertaken by the government and enhanced usage of technology that has changed the

investors‟ outlook towards the asset class.

Investments into Indian real estate have more than tripled to Rs 140,000 crore between 2014 and 2018

as compared to Rs 46,500 crore between 2009 and 2013, said a CII-JLL report.

Traditional real estate segments such as residential and commercial have been using modern

technology across construction, planning and development for over a decade now.

Policy reforms in the sector, the concept of shared economy giving rise to new asset classes such as

co-living and co-working spaces and technology driven businesses resulting in the increased interest

in data centers have together made times exciting, both for occupiers and investors.

Additionally, introduction of Real Estate Investment Trusts (REITs) have opened new doors for retail

investments in commercial real estate.

“India has gradually transformed into an investment destination of international repute post the global

financial crisis and real estate and infrastructure have played a vital role. Within the space, adoption of

technology coupled with policy reforms is one of the key factors for investors to consider greater

participation,” said Ramesh Nair CEO & Country Head, JLL India.

While metros like NCR-Delhi, Mumbai and Bengaluru accounted for 74 per cent of the total

institutional investments during 2009-18, he expects tier II and III cities to draw more funds in the

coming years. Government‟s focus on the growth of smaller cities has been leading the change.

The report also highlighted that the commercial office segment witnessed the maximum share of

institutional investments in the past ten years. Rise in the development of environmentally sustainable

buildings and subsequent demand from occupiers have added strength to this trend.

From 2009 to 2013, opportunistic funds returned to Indian markets and picked up marquee assets in

select offices including commercial and IT parks/special economic zones (SEZs). India‟s improving

reforms scenario added value to the overall scenario.

Notification of REIT regulations in 2014 led to a deluge of investments in high yielding assets with

attractive valuations. This was especially in the non-IT office space as most quality IT/ITeS assets



Link https://realty.economictimes.indiatimes.com/news/industry/institutional-investments-into-real-estate-triples-during-2014-18-report/70779574

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were acquired by funds. Investors took note of the innovation introduced at all levels.

With a superior sustainability quotient, Grade-A offices with single ownership and limited supply

have pushed global investors to close large deals. But lower availability of quality assets has led to

large investors chasing entity level deals leading to extended investment cycles.

As a result, the share of investments in the office segment declined during the first six months of the

year as compared to the corresponding period the last year.

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Affidavit format for Amrapali Sapphire buyers by Noida authority to

be amended

Once the buyers submit the affidavits, the Noida Authority will authenticate the ownership

documents of all flats and weed out ambiguity by verifying paperwork of dues paid and original

ownership papers.

Following objections from buyers of Amrapali Sapphire I, the Supreme Court-appointed court

receiver on Wednesday amended the affidavit format issued by the Noida Authority. Buyers are

required to fill the affidavits to declare their authentic ownership.

The amendment by court receiver R Venkatramani comes after buyers complained that the initial

affidavit format was created to absolve the Noida Authority of all legal responsibilities for floor area

irregularities and also designed to give itself a clean chit.

“A new form is likely to be distributed on Thursday, where the condition imposed by the Authority

would be removed. The new affidavit would adhere to the Supreme Court directions only,” said a

buyer, who met the court receiver on Wednesday evening.

Once the buyers submit the affidavits, the Noida Authority will authenticate the ownership documents

of all flats and weed out ambiguity by verifying paperwork of dues paid and original ownership

papers.

Subsequently, the tripartite registry is to be signed between the Authority, the court receiver and the

homebuyers as per court directions.

“We have submitted details of 450 buyers of Amrapali Sapphire I buyers to the court receiver. We

will send more names over the next two days,” Ravi Kant, a buyer of Sapphire I, said.

Meanwhile, buyers of Amrapali Princely Estate submitted details of ownership of their flats to the

court receiver on Wednesday. Amrapali Princely Estate is likely to be the next set of apartments lined

up for registration.

Of 1,919 in the project, 1,600 have been handed over to buyers.

“The first list emailed to the court receiver comprises the names of 675 flat owners. The second list

will comprise the names of 300 buyers. We are still waiting for ownership details of the rest of the flat

owners,” said Anoop Bhat, a buyer of Princely Estate.



Link https://realty.economictimes.indiatimes.com/news/regulatory/affidavit-format-for-amrapali-sapphire-buyers-by-noida-authority-to-be-amended/70779553

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Of its 49,000 sold flats, there are about 14,000 buyers who are in possession of their homes in

multiple Amrapali projects. The apartments where residents are already living are Sapphire phases I

and II, Silicon City, Eden Park, Zodiac, and Platinum.

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Loans from NBFCs to developers halved in FY19: Report

The report observed that default by leading NBFC, IL&FS, in scheduled payments led to a

liquidity squeeze in the real estate sector since September 2018.

The liquidity crisis in the NBFC sector was so grave that net loan disbursal by non-banking financial

companies (NBFC) and housing financing companies (HFC) to realty developers declined by nearly

50 per cent in 2018-19 on a year-on-year (YoY) basis to an estimated amount of Rs 27,000 crore, a

joint report by CII and JLL saud on Wednesday.

The report observed that default by leading NBFC, IL&FS, in scheduled payments led to a liquidity

squeeze in the real estate sector since September 2018.

"In FY 2018-19, net disbursals by NBFCs or HFCs to real estate developers declined by almost half

from Rs 52,000 crore in FY 2017-18 to an estimated Rs 27,000 crore in FY 2018-19," it said.

The report, however, said that currently the scenario is not as negative as it was even a few months

ago.

It noted that recovery would take time and the new credit discipline would benefit the real estate

sector in the medium-to-long term.

"Also, the new government has taken cognizance of struggling NBFCs and introduced a few new

schemes," it said.

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Link https://realty.economictimes.indiatimes.com/news/industry/loans-from-nbfcs-to-developers-halved-in-fy19-report/70779630

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Jaiprakash Associates to appeal against CCI order

"The company is in the process of filing an appeal against the order," JAL said in a regulatory

filing on Tuesday.

Crisis-hit Jaiprakash Associates Ltd (JAL) will challenge Competition Commission's order that

imposed nearly Rs 14 crore fine on the company for abusing dominant market position.

The penalty was slapped by the Competition Commission of India (CCI) for imposing "unfair" and

"discriminatory" conditions on home buyers.

"The company is in the process of filing an appeal against the order," JAL said in a regulatory filing

on Tuesday.

As per the filing, the CCI has held that the company enjoys dominant position in the relevant market

of provision of services for development and sale of independent residential/ dwelling units in

integrated townships in Noida and Greater Noida, Uttar Pradesh.

In an order dated August 9, the watchdog has imposed a penalty of Rs 13.82 crore, which amounts to

five per cent of the relevant turnover earned by the company from the relevant market during the

financial years from 2009-10 to 2011-12.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/jaiprakash-associates-to-appeal-against-cci-order/70768022

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ILD Greens' flats delayed but no action by H-RERA

The buyers have alleged that both the builder and Rera have not been trying to resolve their

concerns.

Hundreds of homebuyers of ILD Greens — a project in Sector 37 — have been knocking on the doors

of the Gurugram bench of H-Rera alleging delay in handover of flats, but the real estate regulator has

failed to offer any relief to them.

The homebuyers, who protested at the regulator‟s office on Tuesday, said they felt helpless when H-

Rera chairman KK Khandelwal did not turn up for the meeting despite “promising to meet them”.

Khandelwal had refused to meet us on Monday and offered appointment on Tuesday. When we

reached his office on Tuesday, we were informed that he would meet us shortly.

Then we were informed that the meeting could be organised after the lunch. We waited for hours only

to be told that Khandelwal wasn‟t available for the meeting, alleged the homebuyers.

TOI tried to contact the Rera chairman through text messages and phone calls several times, but didn‟t

receive any response.

Nidhi Chawla, one of the homebuyers who took part in the protest, said, “The builder has not reverted

to Rera notices, for which the deadline set by the regulator got over around three weeks ago. But Rera

has not initiated any action ILD.” Launched in 2008, the deadline of the project was set at December

2012.

The builder had promised possession to all homebuyers by that date, but homes are nowhere near

completion. Of the six towers, three towers are yet to be delivered and the buyers have paid more than

90% of the total cost of their flats.

The buyers have alleged that both the builder and Rera have not been trying to resolve their concerns.

The buyers also alleged that the builder has not given them any timeline for restarting the work on the

project. More than 10 years after the launch of the project, three towers are yet to be delivered to

buyers. The builder stopped work on these three towers around 4 years ago, and shows no intent to

complete it, the investors alleged. A registration certificate of the project has been extended twice

based on the assurances given by the builder to complete the project.

Antara Kundu, another buyer, said, “We have been visiting several government offices with



Link https://realty.economictimes.indiatimes.com/news/residential/ild-greens-flats-delayed-but-no-action-by-h-rera/70766859

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complaints. We had already raised our complaints with H-Rera and PMO apart from NCDRCand DTP

and Gurugram police. It seems no one is interested to ready to take action against the developer.”

Arnab Ghosh, another homebuyer, said, “Having invested my hard-earned money in 2011, I haven‟t

still got possession of the property. Even H-Rera has failed to offer any support to homebuyers.”

Ashish Kochhar, who also booked a flat in the project, said the Rera chairman was not ready to meet

buyers and other members of the regulator showed their inability to take action.

“As buyers, we have been just roaming around H-Rera office for the last one year, but it bore no

fruit,” he said. Dilip Bhattacharya, an elderly person and an investor, said, “It‟s an open-and-shut case.

The money collected from buyers has been used to build a magnificent mall on Sohna Road,

Gurugram. The sad news is that this diversion of fund is exposed and known to all government

authorities concerned, including H-Rera, but so far no action has been initiated. Chairman of H-Rera

Khandelwal is reluctant to meet the buyers, even when there was prior appointment,” said

Bhattacharya

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Spring House leases 21,000 sq ft space in Gurugram

“This hub will be operational by the end of September 2019. An investment of Rs 2 crore will be

made in the centre”, said Mukul Pasricha, founder of the company.

Spring House Coworking, a co-working space provider, has leased 21,000 sq ft space on the Golf

Course Extension Road, Gurugram at Good Earth Business Bay

The space will consist of 350 seats with rent varying from Rs 8,500 to Rs 12,500 per seat per month.

This is company's 15th co-working space in North India.

“This hub will be operational by the end of September 2019. An investment of Rs 2 crore will be

made in the centre”, said Mukul Pasricha, founder of the company.

The company recently opened 30,000 sq ft space at Grand Mall, MG Road, Gurugram having over

500 seats capacity. Spring House had invested Rs 2.5 crore on the centre. "The price of a seat in the

centre ranges from Rs 10,000 to Rs 15,000 per seat per month, with a day pass of Rs 800," said

Pasricha.

It currently has 14 centres spread over 2,00,00 sq ft with over 2,800 seats.

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Link https://realty.economictimes.indiatimes.com/news/commercial/spring-house-leases-21000-sq-ft-space-in-gurugram/70767841

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Bombay HC temporarily restrains BMC from acquiring gaothans

The petition stated that there are 189 gaothans. It added when the draft DP was published on

February 25, 2015, it was riddled with errors and only 52 gaothans were marked.

Bombay high court on Tuesday temporarily restrained the BMC from acquiring gaothan lands or

homes, or demolishing them without following due process of law.

A bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre heard a public interest

litigation by Bombay East Indian Association and activist Nicholas Almeida that said the BMC has

failed to mark several gaothans in Development Plan 2034 despite representations from petitioners

and others.

The petition stated that there are 189 gaothans. It added when the draft DP was published on February

25, 2015, it was riddled with errors and only 52 gaothans were marked. Representations were made to

the BMC and the revenue department. Thereafter, when the amended DP was finalized, petitioners

noticed their representations were not considered. The association has prayed for direction to the

authorities to consider representations to mark omitted gaothans in the DP and not treat them as

slums.

Its advocates Floyd Gracias and Godfrey Pimenta argued that representations were made to

authorities, including the revenue minister, but nothing happened thereafter.

The judges have sought replies from the state in four weeks. When the BMC advocate said the DP is

already published, the CJ said: “Which is the law that says they cannot challenge the DP?”

The matter will be heard in October.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/bombay-hc-temporarily-restrains-bmc-from-acquiring-gaothans/70769713

Page 14 of 26

RERA should be amended to plug loopholes: H-RERA Chairman

According to Khandelwal, the existing stipulations and provisions of RERA Act have many

loopholes that need to be plugged in the interest of all the stakeholders, PHDCCI said in a

statement.

The realty law RERAshould be amended to plug loopholes and make it more effective for the interest

of all stakeholders, according to regulators.

In an event organised by industrychamber PHDCCI, Gurugram RERA Chairman K K

Khandelwal asked India Inc to make suggestions to the government for necessary amendments to

RERA Act to make it dispassionately objective for both builders and home buyers.

According to Khandelwal, the existing stipulations and provisions of RERA Act have many loopholes

that need to be plugged in the interest of all the stakeholders, PHDCCI said in a statement.

"In its current format, several sections and sub-sections including clauses and sub-clauses of the

RERA Act are contradictory and therefore, open for many legal interpretations as well interpretations

of real estate regulatory authorities of different States and therefore, amendment to them are called for

to make sure that all stakeholders in the real estate and construction sector get a fair deal and the

intended growth of the sector is ensured," Khandelwal was quoted as saying.

Balvinder Kumar, Member, UP RERA informed that the UP RERA has so far received 70,000

complaints from various home buyers against builders in the state that have defaulted in their delivery

commitments.

Of which 10,100 complaints have been addressed.

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Link https://realty.economictimes.indiatimes.com/news/industry/rera-should-be-amended-to-plug-loopholes-h-rera-chairman/70763340

Page 15 of 26

Maharashtra sits on ordinance for property tax waiver for 500 sq ft

homes

To be on the safe side, BMC hasn’t issued property tax bills to around 2.5 lakh buildings, which

have homes that fit the criterion.

Three months after the state government made a promise of bringing in an ordinance to give full

property tax waiver to homes below 500 sq ft, there is still no clarity on the issue. To steer clear of

controversies, the BMC hasn‟t issued property tax bills to around 2.5 lakh buildings, which have

homes that fit the criterion.

“We have not heard anything about the ordinance from the government. So, we have only issued

property tax bills to those buildings where all the flats are above 500 sq ft. There are 1.83 lakh such

buildings,” said a senior civic official.

According to BMC officials, 4.13 lakh buildings in the city have residential units. Of these, only 2.5

lakh have properties that fall in both categories — smaller and bigger than 500 sq ft.

Officials said that if the entire property tax of 500 sq ft homes is waived, the BMC will lose revenue

of around Rs 350 crore.

Earlier, the Congress had accused the BJP-Shiv Sena-led state government of cheating citizens when

it came to light that the ruling dispensation in an ordinance issued in March this year had waived only

10-30 per cent of property tax.

Terming the property tax waiver, an election promise of the Shiv Sena, a farce, the-then city Congress

chief Milind Deora had exhorted people in Mumbai not to pay property tax.

Deora had said that the proposal forwarded by the Sena-controlled BMC to the state government in

July 2017 recommended that the entire property tax be waived. However, the state government

waived just a fraction of the tax, he said.

Congress corporator Asif Zakaria, who first raised the issue, had written to the then Municipal

Commissioner Ajoy Mehta to issue a clarification on whether the waiver on residential units less than

500 sq ft is applicable on the entire tax or just the general tax component. He had also called the 100

per cent waiver proposal a “farce”.

Under pressure from the Sena, the state government‟s urban development department in March had

ostensibly issued an ordinance waiving property tax for 500 sq ft homes. However, the fine print said



Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-sits-on-ordinance-for-property-tax-waiver-for-500-sq-ft-homes/70769290

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that only the „general tax‟ component of property tax will be waived while eight other components

will remain.

According to officials, property tax consists of nine components and „general tax‟ constitutes around

10-30 per cent of the total amount. The remaining sum is made up of water tax, sewerage tax,

education cess for the BMC and the state government, tree tax, water benefit tax and employment

guarantee tax for commercial properties.

“So the farce is continuing. The BMC will not issue any bills till the assembly elections in October but

after that they will send bills to even those homes that are below 500 sq ft. After we raised the issue

and the Sena claimed to have made it part of its alliance deal with the BJP, the BJP had promised that

an ordinance will be issued but it is yet to come. This was a jhumla,” Zakaria said.

Responding to the Congress‟s charges, the then city BJP chief Ashish Shelar had claimed that all

components of property tax would be waived in future bills. But civic officials said that without an

ordinance, a complete waiver is impossible. However, Additional Municipal Commissioner Praveen

Darade didn‟t respond to calls and text messages.

Property tax biggest revenue source for BMC

Property tax is now the biggest source for revenue for the civic body, especially since the octroi was

subsumed by GST. The property tax collection target for 2018-19 was Rs 5,206 crore. The BMC had

a system in which tax was calculated on the bases of rateable value (rental value). In 2012, the new

capital value (actual property value) property tax system was introduced with effect from 2010.

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Gurugram police to help DTCP keep check on illegal buildings

Around 40 police stations across the city will also send reports regularly to the department to

initiate further actions.

The city police will help the department of town and country planning (DTCP) monitor operations

being carried out in unauthorised buildings and illegal guesthouses as part of its attempt to tackle

unplanned development. Around 40 police stations across the city will also send reports regularly to

the department to initiate further actions.

The DTCP, which is facing staff crunch, had earlier approached the Gurugram police seeking help.

Several illegal guesthouses, which also pose a threat to the city‟s law and order, allow guests to stay at

their facility without properly examining their identity, according to police. Recently, the police had

booked a guest house owner as he didn‟t inform them about the latter‟s stay. Last month, the Agra

police had arrested a Nigerian couple from a guesthouse in DLF-1 for their alleged involvement in an

online fraud.

“We have launched a drive against illegal guesthouses and unauthorised buildings. In order to make it

more effective, we have written to police asking them to provide support in monitoring such

facilities,” said senior town planner (STP) Sudhir Chouhan, adding that police have presence across

the district and adequate manpower. Besides this, he said, they have the knowledge of all kinds of

activities in their respective areas. It is easy for cops to find out illegal guesthouses operating in their

area.

Chouhan said after receiving reports from the police, the department will take appropriate action

against such facilities. “Police may send us the details of guesthouses in Huda areas. We will take

action against such buildings and share these details with Huda,” said Chouhan.

Arvind Sharma, a legal officer of DTCP (enforcement), said as per the Urban Area Act, it is

mandatory for police to alert the department about any violation of the norms and act (related to the

department). “The law makes it mandatory for police to share the details about violations like

operation of illegal guesthouses and construction,” said Sharma. In addition to this, the department is

also engaging private agencies for regular survey of different parts of the city to check unplanned

development.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-police-to-help-dtcp-keep-check-on-illegal-buildings/70769456

Page 18 of 26

Guidelines must for giving building nods: Kerala HC to government

Justice A Muhamed Mustaque has asked the principal secretary of local self-government

department (LSGD) to inform the views of the government on the matter.

The state government should issue guidelines to prevent local bodies from granting building permits

in violation of land laws, except in the case of garden land, said the high court.

Justice A Muhamed Mustaque has asked the principal secretary of local self-government department

(LSGD) to inform the views of the government on the matter.

An interim order issued by the court said, “Except in cases of garden land, in all other cases it may be

required to have an active deliberation among different agencies which have been entrusted with the

power of regulating utilization of this land. It is appropriate for the government to deliberate and come

out with the clear guidelines in regard to granting of permission by the local authority in regard to

land which has not been classified as garden land.”

The court pointed out that different legislations cover the land in the state. Some constructions are

made in land assigned for cultivation under Kerala Land Assignment Act while some constructions

are carried out in plantations of coffee, rubber, etc. Local bodies are often granting building permits

overlooking the land laws. An entrepreneur spends a huge amount for construction and later finds that

construction was not permitted, the court said while explaining the reason for the present order as well

as an earlier order to consider establishing a single-window clearance system for granting building

permits in Idukki and Wayanad districts.

Further, the court said it is seeing a large number of cases challenging action initiated by the revenue

department after completion of construction.

The court is considering a petition by Laly George of Bison Valley in Idukki through advocate

Mathew A Kuzhalnadan. A circular issued by Idukki district collector on June 9, 2016, is being

challenged by the petitioner. It is alleged that the collector made NOC from revenue department

mandatory for issuing building permits in nine villages in Idukki district, citing a high court order,

whereas the court had ordered it only in respect of Munnar village.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/guidelines-must-for-giving-building-nods-kerala-hc-to-government/70769628

Page 19 of 26

Aurangabad civic body appoints special officer to recover property tax

On directives of municipal commissioner Nipun Vinayak, retired official Shivaji Jhanjhan —

known for successfully spearheading tax recovery in the past — has been assigned the job.

A special recovery officer has been appointed by the Aurangabad Municipal Corporation(AMC) for

collecting pending property tax dues from defaulters in zones 2, 3 and 4 of the city.

On directives of municipal commissioner Nipun Vinayak, retired official Shivaji Jhanjhan — known

for successfully spearheading tax recovery in the past — has been assigned the job.

According to the tax recovery department of AMC, the zones selected under special recovery

campaign have heavy outstanding property tax dues. A civic official said that major tax defaulters in

these zones have been issued several notices, still they haven‟t cleared their dues.

Tax recovery department head Mahavir Patni informed that from April 1 to August 19, the total

property tax collection stand at Rs41.79 crore. The data states that the tax collection is higher by

Rs1.6 crore when compared to the corresponding period last year.

However, during the last financial year, tax recovery was a meagre 24% and the municipal

corporation now wants to improve its collection. The zone 3, known for poor tax recovery, is at the

bottom of the list with only Rs1.11 crore tax payment. Zone 7, ward office headed by Patni, is at the

top of the table with collection of Rs 8.99 crore.

Patni said that cooperation from corporators has been sought to improve the recovery. “A list of major

defaulters of commercial properties of each of the 115 wards is being prepared and dispatched to the

concerned corporator. We have appealed to the corporators to try and convince the defaulters in their

wards to pay their dues,” he said.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/aurangabad-civic-body-appoints-special-officer-to-recover-property-tax/70769399

Page 20 of 26

Greater Noida development to discuss changes in land use on August 22

One of the agenda items would be to allow IT plots allotted in industrial areas to be used for

industries. The move comes in the wake of poor response from the IT sector in setting up

businesses across Greater Noida.

The board meeting of Greater Noida Industrial Development Authority (GNIDA) that is scheduled for

Thursday may see some important decisions being taken regarding changes in land use and property

rates across the city.

One of the agenda items would be to allow IT plots allotted in industrial areas to be used for

industries. The move comes in the wake of poor response from the IT sector in setting up businesses

across Greater Noida.

“IT firm allotments can be done in industrial as well as institutional areas in Greater Noida. We have

90 such plots in both categories. But since IT sector activities have not picked up here, we are

proposing the change,” said Narendra Bhooshan, the CEO, GNIDA.

Officials said that at least two applications have been received wherein IT companies have sought

permission to switch to industries category. Earlier in Noida, similar changes were made to allow

more industries, as not many IT companies were interested in setting up shops.

Another important agenda that might be discussed is to introduce variable pricing of plots in each

category.

As of now, all plots in a particular category have the same rate. Officials said that properties at a

prime spot, like Pari Chowk as well on the outskirts of the city, cost the same now. With the variation

in rates, the best properties will be slotted in category A, followed by B, C and D categories.

With this, minor increase can be expected in land cost. For example, industrial land up to 4,000 sqm

costs Rs 10,790 per sqm across the city now. When the variation, the rate would be Rs 10, 790 per

sqm in D category and marginally higher in C category. It would higher in B and A categories.

“ It is important to make the change to bring the rates closer to market value and reduce black market

transactions,” said Bhooshan.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/greater-noida-development-to-discuss-changes-in-land-use-on-august-22/70769359

Page 21 of 26

PMAY flats to cost Rs 2 lakh more in Uttar Pradesh

As of now, each flat under the scheme costs Rs 4.5 lakh, out of which Rs 1.5 lakh is given by the

central government, Rs 1 lakh by the state and Rs 2 lakh by the beneficiary.

The state government has given in-principle approval to hike the cost of flats under Pradhan Mantri

Awas Yojna (PMAY) from Rs 4.5 lakh to Rs 6.5 lakh, wherein the beneficiary will bear the burden of

the increase in amount.

Ghaziabad Development Authority (GDA) vice-chairman Kanchan Verma, while confirming this,

said, “Till the time we receive the government order, nothing can be said conclusively.”

As of now, each flat under the scheme costs Rs 4.5 lakh, out of which Rs 1.5 lakh is given by the

central government, Rs 1 lakh by the state and Rs 2 lakh by the beneficiary.

“Once the new rate becomes applicable, the contribution of the state and central governments will

remain the same but the beneficiary will have to pay Rs 4 lakh,” GDA chief engineer VN Singh said.

People with annual income less than Rs 3 lakh per annum are eligible to buy PMAY flatsthat are 30

sqm, or 322 sq ft, in size. Singh said that the new rate would not be applicable to flats whose tenders

have already been floated. These include 856 flats in Madhuban-Bapudham, 288 in Niwari, 432 in

Dasna and 1,152 in Masuri.

Officials said initially the builders‟ association had demanded an increase in the prices of affordable

houses under PMAY.

The government had agreed, but when development authorities across the state sought a similar

increase since they are also constructing flats under the scheme like private developers, the approval

was given a rethink.

Subsequently, a committee comprising development authority officials from Ghaziabad, Lucknow and

Kanpur and Awas Vikas Parishad was formed to look into the matter.

Singh, who is a member of the committee, said, “The panel had recommended a hike of Rs 2 lakh to

the UP government citing rates of such flats in various other states which are in the range of Rs 5.5

lakh to 10 lakh.”

GDA, along with private developers, has to build 36,000 flats by 2021 under PMAY — 13,500 in

2018-19, 18,000 in 2019-2020 and 4,500 in 2020-21. It will require GDA to spend at least Rs 2,400

crore, which the development agency says is “very difficult” given the paucity of funds.



Link https://realty.economictimes.indiatimes.com/news/residential/pmay-flats-to-cost-rs-2-lakh-more-in-uttar-pradesh/70767415

Page 22 of 26

Singh said, “The actual cost of building a flat is over Rs 7 lakh, where land is provided free of cost

and Rs 10 lakh where land is needed to be bought. GDA would need 60 acres for constructing the

flats. So far, no flats under PMAY have been delivered.”

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Page 23 of 26

Real estate in Andhra Pradesh plunges with softening demand

“There is no demand in Andhra Pradesh, including in the industrial town of Visakhapatnam.

Buyers have become scarce and it looks like they will become scarcer as the economy is cooling,”

says Are Siva Reddy.

The real-estate marketin Andhra Pradesh appears to be treading rough water in the past few months,

with buyers hard to find, even as developers hustle to get a key raw material, sand, in some

districts, industry sources said on Tuesday.

“There is no demand in Andhra Pradesh, including in the industrial town of Visakhapatnam. Buyers

have become scarce and it looks like they will become scarcer as the economy is cooling,” says

Are Siva Reddy, chairman of the AP unit of Credai, the lobby of the real-estate sector.

Reddy said that developers were offering a discount of up to Rs 500 per sq foot in Vijayawada and

Visakhapatnam to potential buyers, but still buyers are hard to find because potential buyers have

become anxious about their jobs and their capacity to repay.

According to the owner of a residential real-estate development company in the port city, apart from a

reducing buyers‟ pool, the other problem faced by developers is the rapidly receding access of sand, a

critical raw material in construction. “Developers in the city do not have easy access to sand, which is

impacting construction schedules,” he said.

He said that potential buyers were becoming hard to come by in the city as wages have remained

stagnant and mortgage companies were getting tight-fisted with mortgage disbursals. “No new jobs

are being created in the city, and much of the earlier generation has already bought a flat or a house

some years back,” the developer said, requesting anonymity.

Reddy of Credai said that many residential projects in most of the major towns in AP have gone slow

on their work because of cash-flow problems and the paucity of sand in many towns. “The state

government has promised to unveil a new sand policy by 5 September. That will help in buying sand

at viable prices, but the key problem is that there are no buyers,” Reddy said.

Reddy said the developers were also unable to sell their ongoing projects to new developers because

the market had softened to a large extent. “The government should create an industrial policy that will

stimulate the economy. Currently, we are facing one of the toughest periods in the real-estate market,”

he said.

It appears that Andhra Pradesh is not alone in facing turbulence in the housing market.



Link https://realty.economictimes.indiatimes.com/news/industry/real-estate-in-andhra-pradesh-plunges-with-softening-demand/70767553

Page 24 of 26

According to Anuj Puri, chairman of the Mumbai-based Anarock Property Consultants, a real-estate

consulting firm, “The 'golden years' of Indian residential real estate are well and truly over, at least in

the short to mid-term. The sentiment of end-users as well as investors who previously banked heavily

on residential real estate for maximum returns is seriously curtailed.”

“Housing sales soared to 3.5 lakh units in 2014 (the best between 2013 and 2019) but fell to a mere

2.1 lakh units in 2017, immediately post demonetization. Homebuyers perched themselves on the

fence, awaiting more favourable market trends, and investors backed out completely,” Puri said in a

statement on Tuesday.

“While radical reformatory change was indeed required, these unaccustomed reforms caused an

upheaval from which the Indian housing market has yet to recover. Home sales are seriously low and

have not rebounded to their earlier peak levels. Though we saw some green shoots of revival in 2018,

current housing sales trends indicate that they are unlikely to rally back to their peak levels anytime

soon,” he said.

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Page 25 of 26

Cidco clears plan for 94,000 low-cost homes in Navi Mumbai

Around 53,000 houses will be low income group (LIG) and the remaining economically weaker

section (EWS) category.

Cidco board on Tuesday approved a Rs 19,000-crore plan to build 94,000 affordable houses/flats. It is

probably the most houses to be built as part of PM Narendra Modi‟s flagship housing for all by 2022

scheme, introduced on June 1, 2015.

Around 53,000 houses will be low income group (LIG) and the remaining economically weaker

section (EWS) category. The houses will be close to suburban railway stations, bus and truck

terminals and construction will start after registration under RERA.

Meanwhile, Cidco board will take a call on inviting CM Devendra Fadnavis for the Metro test run for

less that 2km in few days. It felt, sources said, that preliminary charging of the depot and other

mandatory tests should be done first. The trial run, for which permission has to be sought from the

commissioner of railway safety and other authorities, is scheduled in December. The Rs 3,063-crore

Metro spans 11.1km, from Belapur to Pendhar.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/cidco-clears-plan-for-94000-low-cost-homes-in-navi-mumbai/70769496

Page 26 of 26

Flood-proof homes act as safe havens in Alappuzha

These houses are sponsored by Ramoji Film City after they noticed the initiative for rebuilding

flood-ravaged Alappuzha.

Flood-resilient houses constructed by Kudumbashree under the „I am for Alleppey‟ project of district

administration in Kuttanadare now acting as safe havens for flood victims. Such houses are now

acting as camping places and food supply centres for flood-hit people.

„I am for Alleppey‟ is a social media campaign led by Alappuzha sub-collector Krishna Teja, it has

deployed 42 groups of Kuttanad women working in Kudumbashree to construct 116 flood-resilient

houses for Kuttanad flood victims. These houses are sponsored by Ramoji Film City after they noticed

the initiative for rebuilding flood-ravaged Alappuzha.

As part of its first phase, the construction of 42 houses is underway and is almost completed. In the

second phase, 43 houses will be constructed, and work will begin soon. The third phase consists of the

construction of 31 houses.

Sheeba Azad, a flood victim, said that the flood-resilient house constructed in their area was for a poor

family. “Their house used to get flooded every monsoon. During the last flood, the water came till

their roof level. So, the sub-collector allotted a house for them and its construction is almost complete.

Presently, it is the only house in our area which is not flooded. So, we are depending on this house for

cooking and eating,” she said.

“We are constructing 500 homes for the flood victims in Alappuzha under the campaign. Most of the

homes have an RCC roof, which will help people to collect air drops. Every village in Kuttanad will

have at least one flood-resilient house. We are constructing houses that are at least 500 sq ft in size.

Each house consists of two bedrooms, one hall, one kitchen and an attached bathroom,” said Teja.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/flood-proof-homes-act-as-safe-havens-in-alappuzha/70769742

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