11-Dec-2019

10-Oct-2019

06-Dec-2019

CREDAI Bengal Daily News Update | 11.12.19

Newspaper/Online The Times of India(online)

Date December 11, 2019

Noida authority to soon finalise policy to recover land dues form

government offices

The amount kept accruing over the years in the form of rent arrears and compound interest.

The Noida Authority will soon finalise its strategy to recover dues from government and public sector

institutions that had been allotted plots over a decade back in the city. In a review conducted earlier

this year, it was found that 76 government establishments or public sector undertakings owed the

Authority Rs 539.48 crore.

The amount kept accruing over the years in the form of rent arrears and compound interest. The

Authority had allotted land to most of these government institutions way back in the 1990s. However,

the arrears were not collected for several years at a stretch. Since June this year, the Authority has

stepped up efforts to recover dues from defaulters under various categories.

Having sent multiple notices, the Authority had issued recovery certificates against developers, private

institutions as well as individuals in order to claim its land back. “But since government institutions

are into public service and not profit making, we thought of adopting a different approach. Closure of

government offices would cause a lot of inconvenience to public,” said officer on special duty, Indu

Prakash Singh.

In the meantime, several banks and oil companies issued notices have knocked the doors of the

Allahabad high court for relief. In the next few days, the Authority would hold a meeting to decide the

next course of action to deal with government institutions.

The list of government defaulters include banks, oil and natural gas companies as well as different

government departments. While public sector banks make up for the highest chunk, state run oil and

gas companies come second.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-to-soon-finalise-policy-to-recover-land-dues-form-government-offices/72456477

HC directs Nagpur civic body to conduct survey of buildings without

parking areas

Before scheduling the next hearing on December 19, the bench also asked NMC commissioner

Abhijit Bangar to submit the compliance report of 14 buildings which failed to provide parking.

Questioning the Nagpur Municipal Corporation (NMC) on the basis of its survey of 787 buildings in

the city, the Nagpur bench of Bombay high court on Monday directed it to conduct a fresh survey in

congested areas like Dhantoli which lack adequate parking facilities.

A division bench comprising justices Sunil Shukre and Rohit Deo instructed the civic body to give

priority to establishments like coaching classes, restaurants and hospitals during the new survey and

submit the report within a month.

Before scheduling the next hearing on December 19, the bench also asked NMC commissioner Abhijit

Bangar to submit the compliance report of 14 buildings which failed to provide parking. The buildings

would be demolished.

Bangar was present in court after being summoned for inaction by authorities in solving the parking

and congestion problems in Dhantoli since years.

The court was hearing a fresh PIL (No. 52/2017) by aggrieved citizens of Dhantoli Nagrik Mandal

through counsels Ashutosh Dharmadhikari and Ashwin Deshpande over parking problems faced by

residents due to a large number of hospitals that have cropped up in the area. The hospitals have

misused space meant for parking by opening canteens and other services at basements.

In his affidavit filed through counsel Sudhir Puranik, the NMC chief informed the court that as many

as 65 slums with multi-storey buildings in congested and commercial areas of the city were notified by

the Maharashtra Housing and Area Development Authority (MHADA) as per the HC’s judgment in

2012 in the Manohar Bhadad versus Madhuri Walokar case where the civic body was restrained from

taking action pertaining to demolition of such property.

After the HC’s directives, the NMC filed an affidavit on February 12, 2016, stating that 576 buildings

in all the ten zones were surveyed of which 408 were found with proper parking space in accordance

with the sanctioned plan.

In 148 buildings, illegal construction/encroachment in the parking area was found. Unauthorize

construction was removed from 131 structures. The NMC had directed every zone to constitute a

special squad for demolition of unauthorized constructions. The panel comprised PWD’s deputy

engineer as its head. The other members of the panel were the junior engineer, civil engineering

Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/hc-directs-nagpur-civic-body-to-conduct-survey-of-buildings-without-parking-areas/72456859

assistant and sanitary inspector.

The NMC chief pointed out that there were two planning authorities — NMC and NIT — and that the

HC had directed both authorities to comply with its directives. “The buildings within the NMC’s

jurisdiction are inspected on a regular basis. Notices were issued to those occupying parking space,”

he said.

In the last hearing, the HC censured the civic body for only issuing notices to offenders who occupy

parking space for other means in blatant violation of norms. The petitioners are praying for ending the

menace of commercial establishments in Dhantoli which was once renowned as a locality of the ‘rich

and famous’. Now, it has completely turned into a concrete jungle after many hospitals, coaching

classes and food joints cropped up in the area, primarily because of permission granted by the NMC

without verification.

A majority of them have gobbled up the parking space and are using it for other purposes in gross

violation of norms.

Many hotels lack parking space

The petitioner pointed out the absence of stipulated parking places at popular eateries on the stretch

from Panchasheel Talkies to Mehadia Square. As a result of this mess, there is severe congestion and

frequent traffic jams throughout the day.

His counsels orally named Ganesh Sagar and other popular food joints that are operating from the

basement of various commercial complexes which don’t have parking space for the vehicles. The

petitioner also highlighted the fact that due to the NMC bus depot operating from Patwardhan ground

and a private depot of buses going to the Madhya Pradesh, there is total chaos in the area, particularly

during office hours and in the evening. The Dhantoli Mandal prayed for directives to the NMC to take

pro-active steps for easing the flow of traffic from the entire area.

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Residents slam Bengaluru civic body over penalty for not composting

waste

The Bruhat Bengaluru Mahanagara Palike’s recent drive against apartments for not composting

waste within their premises has drawn flak from residents.

The Bruhat Bengaluru Mahanagara Palike’s recent drive against apartments for not composting waste

within their premises has drawn flak from residents.

The Bangalore Apartments’ Federation (BAF), with a membership base of over 500 complexes

representing about l lakh households, slammed BBMP for its “unilateral, unreasonable and illegal

penalisation of apartments” which haven’t been able to do in-situ composting.

Vikram Rai, treasurer and solid waste management head of BAF, said, “SWM rules of 2016 call for

only waste segregation. They don’t mandate that apartments do in-situ composting, nor give the

municipality the authority to levy a fine. Section 4 (7) of the rules merely recommend in-situ

composting can be done by gated communities as far as possible, and if not, waste should be disposed

of properly.” BBMP commissioner BH Anil Kumar clarified in-situ composting is mandatory for

apartments with 50 units and above.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/residents-slam-bengaluru-civic-body-over-penalty-for-not-composting-waste/72457100

Trichy civic body's property tax collection centres face internet issues

When residents approached the corporation officials at the zonal offices, they were told that the

issue has halted tax collection in other offices as well

While Trichy corporation is reaching out to residents urging them to pay property tax on time, locals

are unhappy over frequent internet connectivity outages and failure of online tax payment software at

the civic body’s tax collection centres.

Residents said for the past three days officials at the tax collection centres have been turning them

back saying the software was facing server issues.

“I visited the tax collection centre at Woraiyur three days back to pay my property tax but officials

said the payment could not be made as the server was down. Though I provided my mobile number

with the officials to alert me once it was rectified, there was no communication from the tax collection

centre,” said K Suresh, district president of AITUC.

When residents approached the corporation officials at the zonal offices, they were told that the issue

has halted tax collection in other offices as well. Same was the case at several tax collection centres in

K Abishekapuram zone.

“There was some internet connectivity issue at a few centres but tax collection progressed in other

centres. The snags will be rectified. On Monday alone, we collected Rs 85 lakh as property tax,” a

senior official with Trichy Corporation said.

The civic body said residents can pay taxes themselves at home on www.tnurbanepay.tn.gov.in

without having to visit the tax centres and plan to spread awareness on it.

The civic body had embarked on an awareness drive on Sunday urging residents to pay taxes on time

apart from informing that the hike in property tax had been rolled back by the state government.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/technology/trichy-civic-bodys-property-tax-collection-centres-face-internet-issues/72455678

Nagpur civic body seeks police's help to vacate over 80 buildings

flouting norms

Many property owners ignored several reminders sent by the fire department.

The Nagpur Municipal Corporation’s fire and emergency services department has sought city police’s

help to evict 81 establishments which have not followed firefighting measures. Despite declaring

1,416 out of 3,985 high rises, commercial and industrials units unsafe, many property owners are yet

to install firefighting system.

Many property owners ignored several reminders sent by the fire department. Later, the department

invoked section 1(A) of the Fire Act and declared the buildings unsafe. It also directed the water

works department and MSEDCL to disconnect water and electricity supply to these buildings.

Under section 8 (2), the department asked owners and occupants of 892 buildings to vacate their

premises. “As response from owners towards following the guidelines of Maharashtra Fire Prevention

And Life Safety Measures Act 2006 was very poor, the department decided to take the help of

Maharashtra police under section 8 (2) B,” said a senior official from the fire department.

Recently, the department submitted a list of 81 owners of such establishments and urged the city

police to forcibly remove them from the unsafe building. “The act empowers the fire department to

comply with its directives,” claimed the officer.

According to data from the fire department, there are 3,985 buildings in corporation limits where the

owners have procured primary no-objection certificates under the act. Of them, only 935 owners have

obtained compliance certificate by installing firefighting equipment on their premises.

During inspection of the buildings, fire personnel identified firefighting discrepancies in 2,647

buildings and subsequently issued notices under section 6 of the Act to their owners.

A government housing society situated off Amravati Road too has been declared unsafe and now,

police’s help was sought for forcible vacation of the building.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/nagpur-civic-body-seeks-polices-help-to-vacate-over-80-buildings-flouting-norms/72453662

NCDRC orders Three C Shelters & Orris Infrastructure to refund

buyers' money

Both the builders have also been ordered to Rs 25,000 as the cost of litigation in each complaint.

The payment in terms of this order shall be made within 45 days.

The National Consumer Dispute Redressal Commission (NCDRC) has ordered Three C

Shelters & Orris Infrastructure to refund home buyers' money alongwith 10% interest per annum from

the date of the payment till the date of refund.

Both the builders have also been ordered to Rs 25,000 as the cost of litigation in each complaint. The

payment in terms of this order shall be made within 45 days.

The order relates to two separate compalints filed by two home buyers, through their advocate Aditya

Parolia of PSP Legal, who had booked apartments in Greenopolis in 2013. The project was to be

developed jointly by the builders in Sector 89, Gurugram.

The construction was to be completed within thirty six months with a grace period of six months from

the date of allotment. However possession has not been offered till date to both the buyers.

Three C Shelters in its plea had said that it is only the land owner and Orris Infrastructure is the

developer. There is a development agreement between them and this was in the knowledge of the

buyer. As per this development agreement, 35% units are to be sold by Three C and 65% units are to

be sold by Orris.

In this background, it is to be considered that the project has been delayed by Orris and therefore,

Three C is not responsible for paying any compensation for the delay in handing over the possession,

the builder said in its plea.

The builder further stated that the High Court of Punjab and Haryana imposed a blanket ban on the use

of ground water in the region of Gurugram and adjoining areas for the purposes of construction in

2012. Hence the delay has occurred due to conditions prevailing which were beyond their control.

Orris Infrastructure on the other hand pleaded that Three C is the owner of the project and entire

amount paid by the buyer has been taken by them. Hence it is their responsibility to refund the

amount.

The consumer forum however rejected builders' appeal and said that the project has been clearly

delayed by more than two years and complainant has right to seek refund. Even if the use of ground

water was restricted, there was no ban on construction. Builders should have put its resources and

Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/ncdrc-orders-three-c-shelters-orris-infrastructure-to-refund-buyers-money/72459979

managerial skills to bring water from outside and to complete the construction in time.

In the first case Three C Shelters has been ordered to refund the entire principal amount of Rs 74.38

lakh along with 10 per cent interest per annum from the date of the payment till the date of refund.

While in the second case, Orris Infrastructure has been ordered to refund the entire principal amount of

Rs 85.71 lakh along with 10 per cent interest per annum from the date of the payment till the date of

refund.

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UP-RERA de-registers Festival City phase-I; puts Mist Direct Sales in

defaulters list

The authority has also placed Mist Direct Sales in the 'defaulters list'. The bank account for the

project has been frozen. It has also formed a committee, presided over by Balwinder Kumar,

which will decide on the completion of the project.

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has ordered de-registration

of Festival City phase-I with immediate effect. The project was being developed by Mist Direct Sales,

a sister concern of Bhasin Group.

The authority has also placed Mist Direct Sales in the 'defaulters list'. The bank account for the project

has been frozen. It has also formed a committee, presided over by Balwinder Kumar, which will

decide on the completion of the project.

In March 2019, the authority had issued a show-cause notice to the builder, under section 7 of Real

Estate (Regulation and Development) Act 2016 asking it to respond within 30 days as to why the

registration of their project-Festival City phase-I be not cancelled.

The notice was issued after about 19 home buyers of the project filed complaints against the builder

saying that only 15 per cent of the construction is complete till date and the promoter has misused

buyers' money. The registration department has also arrested the promoter of Mist Direct Sales as they

have not paid stamp duty worth Rs 12 lakh, the buyers said in their complaint.

Buyers have also claimed the construction work is stuck now and there had been changes in building

plan as well.

UP-RERA found that the builder has not given quarterly update about its project on authority's website

while the information given are also incomplete. The technical advisor of the authority in February

2019 said that the project which started in 2012 has Ground+26 floors and about 50 per cent project is

complete.

The builder had claimed that the project will be complete by 2022 as per the deadline given to UP-

RERA.

In April 2019, promoters in their clarification had said that Bhasin Group will complete the project by

March 2020 and had further invested Rs 16.22 crore in the project. They further said that the delay

was on par of Mist Avenue who was the co-developer in the project. But now the agreement has been

Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-de-registers-festival-city-phase-i-puts-mist-direct-sales-in-defaulters-list/72461083

terminated and the construction has been handed over to its sister concern Mist Direct Sales.

In May 2019, the builder informed that total expected cost to complete the project is Rs 373.83 crore

out of which Rs 157.90 crore has been invested so far. The builder offered to sell its Delhi-plot for Rs

45 crore while the rest will be arranged from banks/financial institutions/NBFCs.

During the same month, Bhasin Group further informed that they will arrange Rs 165 crore by selling

a plot situated in Greater Noida owned by its subsidiary Dhumketu Builders and Developers. They

also gave an affidavit of immediate investment of Rs 3 crore in the project. The builder further assured

that all the money will be kept in an escrow account and will be used only for the completion of the

project.

UP-RERA had then postponed its deregistration order for four months asking builder to give the

update in October 2019. It also formed a concillation committee presided over by RD Paliwal to look

after the progress of the project.

Concillation committee in Novermber 2019 presented its report which stated that the builder has failed

to open an escrow account and inform about the same to UP-RERA. They have also failed to construct

the project as per the plan proposed by them.

______________________________________________________________________________________________________

Union Bank of India cuts MCLR by 5-10 bps

One-year MCLR now stands at 8.20 per cent, down from 8.25 per cent, the public sector bank

said.

Union Bank of India on Tuesday said it has cut one-year MCLR rate to 8.20 per cent, down 0.05

percentage point. Union Bank of India has reduced marginal cost of funds-based lending rate (MCLR)

by 5-10 basis points (bps) across all tenors, it said in a release.

One-year MCLR now stands at 8.20 per cent, down from 8.25 per cent, the public sector bank said.

Overnight MCLR has been reduced by 10 bps to 7.75 per cent.

The one-month to six-month tenor MCLRs have been cut in the range of 7.80 to 8.05 per cent, it said.

Revised MCLR rates will be effective from December 11, the bank said.

The Reserve Bank in its bi-monthly monetary policy review last week had kept the key repo rate

unchanged at 5.15 per cent.

Following this, several public sector banks including the largest lender SBI, followed by Bank of

Baroda, Bank of India, among others, announced reduction in MCLR which will bring down the cost

of loans such as auto and home for consumers.

One-year MCLR is the benchmark to price most of the consumer loans.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/union-bank-of-india-cuts-mclr-by-5-10-bps/72465738

Park Hotels plans public issue to raise Rs 1,000 crore

ICICI Securities and JM Financial are managing the issue. The company aims for a listing by

April 2020.

The Park Hotels, managed by the Apeejay Surrendra Group, is planning a Rs 1,000-crore maiden

public share sale and will file the initial document, called the draft red herring prospectus, for the issue

with the capital markets regulator later this month, said two people aware of the development.

According to one of the persons cited above, the company which runs luxury boutique hotels across

the country, is planning to raise Rs 500 crore through a primary issue and the remaining Rs 500 crore

via an offer for sale.

ICICI Securities and JM Financial are managing the issue. The company aims for a listing by April

2020.

Promoters of the company own a tad more than 90 per cent and they plan to divest 20 per cent in it,

said one of the persons cited above.

The Park Hotels currently runs 25 properties, including 12 under a sub-brand called Zone by The Park.

It is developing two properties under The Park brand in Indore and Pune and 10 more under Zone in

locations such as Tirupati, Dimapur and Srinagar.

It has signed a contract with the West Bengal government to manage a property called The Denmark

Tavern established in 1786 as a Danish storehouse of flagstaff and cannons and restored from the ruins

in 2010-11.

The Park has also taken up the management of a 150-year old mansion in Chettinad, Tamil Nadu. It

owns 50 per cent of its properties and is under management contracts for the rest.

The company started in 1967 with a property in Park Street, Kolkata, where it got its name. For the

first 20 years, it opened just three properties in Kolkata, Visakhapatnam and New Delhi.

After the current chairperson Priya Paul joined the company in 1988, it established itself as a so-called

design-led boutique hotel brand, stepped up its expansion, took up management contracts, launched

and rapidly added properties under the Zone sub-brand.

The company had a turnover of Rs 416 crore in FY19, up 10 per cent on year, according to documents

filed with the Registrar of Companies. Its net worth stood at Rs 589 crore at the end of FY19, up a bit

from last year. Debt totaled Rs 485.2 crore.

Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/hospitality/park-hotels-plans-public-issue-to-raise-rs-1000-crore/72456371

The company earned 57 per cent of its revenue from accommodations while the remaining 43 per cent

came from food and beverage sales in FY19. The split was 60:40 in FY18, meaning food and beverage

sales have grown as contributors to revenue.

The Park follows Lemon Tree Hotels, which went public in March 2018 and Chalet Hotels that listed

in January this year. Lemon Tree had a market cap of Rs 4,773 crore as of Monday’s closure on the

Bombay Stock Exchange whereas Chalet has a market cap of Rs 6,815 crore.

______________________________________________________________________________________________________

Brazil-based Mitre Realty files for IPO

Proceeds raised from the primary offering will be used to buy land and pay down construction

costs and other operating expenses, according to the document.

Brazilian real estate builder and developer Mitre Realty has filed for an initial public offering,

according to documents registered with the country's securities commission (CVM).

The Sao Paulo-based firm, which specializes in property aimed at mid- to high-income earners, will

include primary and secondary share offerings in the deal which will be managed by Itau BBA, BTG

Pactual and Bradesco BBI.

Proceeds raised from the primary offering will be used to buy land and pay down construction costs

and other operating expenses, according to the document.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/brazil-based-mitre-realty-files-for-ipo/72455865

Canada: Value of building permits fell by 1.5% in October

The value of building permits were down in five provinces, with British Columbia recording the

largest decrease.

The value of Canadian building permits fell by 1.5% in October from September, Statistics

Canada said on Monday.

The residential sector saw lower intentions for both the single-family and multi-family components,

while the institutional component of the non-residential sector saw an increase.

The value of building permits were down in five provinces, with British Columbia recording the

largest decrease.

Month on month (%) Oct Sep(rev) Sep(prev) Total -1.5 -5.9 -6.5 Residential -3.2 -10.5 -10.7 Non-

residential +1.1 +2.1 +0.9

NOTE: Analysts surveyed by Reuters had expected an increase of 3.0% in the value of building

permits in October. All figures are seasonally adjusted.

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Newspaper/Online ET Realty (online)

Date December 10, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/canada-value-of-building-permits-fell-by-1-5-in-october/72455993