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07-Sept-2019
CREDAI Bengal Daily News Update | 07.09.19
MGP wants projects on less than 500 sq metre area to be included
under RERA
They have asked the word „or‟ to be removed and be replaced by „and‟, so that it would strictly
be restricted to really small projects.
Projects that may be built on less than 500 sq m area but have over eight apartments cannot be
excluded from the Real Estate Regulatory Authority (Rera) purview, pointed out the consumer rights
organization Mumbai Grahak Panchayat (MGP) to the Union ministry of housing and urban affairs.
While the Section 3 (2) of Rera excludes registration of small projects that can be developed in an
area of less than 500 sq m or less than eight flats, the consumer organization has written to the Centre
urging it to make changes in the Act.
They have asked the word „or‟ to be removed and be replaced by „and‟, so that it would strictly be
restricted to really small projects.
They pointed that the interpretation of the law by many developers has resulted in them taking
advantage of „non-registration‟, as they have plot area below 500 sq m but have constructed over 20
flats, which, defeats the purpose of the Act.
“While Rera insists on registration, the very purpose of the Act is defeated if the law is interpreted in
such a way that inspite of the area being small, the developers have chosen to go higher. And if such
projects are stuck, the consumers are the ones who suffer,” Shirish Deshpande, the chairman of
MGP, said.
Recently, at a housing meet, officials from the housing ministry had announced that the government
was working towards amending several provisions of Rera, which would benefit both developers and
homebuyers. MGP was hoping that this proposal will be included as part of the amendments
Citing the Maharashtra Real Estate Appellate Tribunal‟s judgment regarding a Pune-based
consumer‟s complaint where a project with 22 flats and nine shops was permitted, the consumer
rights organization said such cases need to be brought to the fore.
The case went from MahaRERA authorities to the Maharashtra Real Estate Appellate Tribunal and
as per members of MGP, it may soon go to the high court, if the consumers decide to continue
fighting their case
Newspaper/Online ET Realty (online)
Date September 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/mgp-wants-projects-on-less-than-500-sq-metre-area-to-be-included-under-rera/71018959
“Before the case went to the appellate tribunal, Rera adjudicated members of the project liable for
registration, by interpreting that both the conditions — area below 500 sq m and below eight
apartments — be met simultaneously. The members had imposed a Rs 30 lakh fine for non-
registration and directed the developer to register within two days. If the developer failed to do the
same, there would be further penalty. However, the case went to the tribunal which stated that either
of the condition be met, which again questioned how the Act was interpreted,” another member of
the MGP said.
The members of MGP firmly believe that the sanctity of the Act would not remain unless it was
amended and that the developers would take advantage of it.
The consumer rights organizations have stated that the Real Estate (Regulation and Development)
Act 2016, which came into force from May 2017, aimed at bringing transparency to the sector, which
was earlier unregulated and that amendments for the benefit were necessary.
The Centre will consult all stakeholders on the implementation of Rera in all states for the same, and
so consumer rights organizations are putting forth their issues regarding the changes required to
make it more effective.
___________________________________________________________________
NGT seeks details of buildings above 20,000 sq metre in Jharkhand
having environment clearance
"In the next hearing on September 23, we will know from the tribunal about the time frame
given to the committee to verify and submit the report," said Singh.
The National Green Tribunal (NGT) on September 2 issued a notice to the state government to reply
within three weeks on the number of buildings above 20,000 square metre area having clearances
under the Environment Impact Assessment (EIA) notification of 2006.
The NGT move came after a petition was filed by noted wildlife activist R K Singh, who accused the
government of flouting the green norms while building the new assembly building.
The NGT also constituted a committee comprising representatives from the regional office of the
ministry of environment and forest conservation and climate change in Bhubaneswar and State
Environment Impact Assessment Authority (SEIAA), Jharkhand, to verify the claims of the
petitioner and submit a report within a given time frame.
"In the next hearing on September 23, we will know from the tribunal about the time frame given to
the committee to verify and submit the report," said Singh.
Notably, in his petition, the Singh has stated that the government has undertaken major constructions
of buildings particularly in Bokaro, Ranchi, Deogarh and Jamshedpur.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ngt-seeks-details-of-buildings-above-20000-sq-metre-in-jharkhand-having-environment-clearance/71009725
Around 700 houses ready for people displaced by Pune Metro
The Slum Rehabilitation Authority (SRA) said it was now up to the local administration to
carry out the rehabilitation.
Around 700 tenements have been made ready in Lohegaon for the rehabilitation of the slum dwellers
displaced by the Metro project in the city.
The Slum Rehabilitation Authority (SRA) said it was now up to the local administration to carry out
the rehabilitation.
SRA officials said an assessment revealed that nearly 1,000 people had to be rehabilitated from the
area and the Pune collector has been told to work out a plan with the Pune Municipal
Corporation (PMC), Pune Metropolitan Region Development Authority (PMRDA) and MahaMetro.
“A meeting on this was held on Wednesday,” an SRA official said, adding that they would be get
possession of the tenements by month-end. “The SRA is waiting for the local authorities‟ response to
the proposal. We are willing to hand over these tenements for the rehabilitation programme,” he said.
The slums — Kamgar Putla Vasahat, Rajiv Gandhi Vasahat and Juna Topkhana — have to make
way for the PMRDA‟s elevated Metro line, the stations of MahaMetro and a proposed DP road of the
PMC. Though the earlier number for people to be rehabilitated was set at about 400, the number rose
to around 1,000 after the assessment.
As per the proposal, the affected people would get two options for the rehabilitation — a housing
unit or cash compensation. The compensation amount will be decided after the number of the
beneficiaries was finalized, SRA officials said.
PMRDA officials said they hoped that the work on the pillars for the elevated Metro line would start
once the people living in the three slums were rehabilitated. The PMRDA has already started work
on the pillars at Hinjewadi. The rest of the pillars would be installed once the final agreement
between the PMRDA and the concessionaire is signed.
The Maharashtra Metro Rail Corporation Limited (MahaMetro) is developing the remaining two
Metro corridors — Pimpri-Swargate and Vanaz-Ramwadi. These corridors will further intersect with
the PMRDA line at the Civil Court station, which is being planned as a multi-modal transport hub.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/around-700-houses-ready-for-people-displaced-by-pune-metro/71002415
Gujarat government gives nod for DLF's IT park in Gandhinagar
Six years later, Gujarat government had initiated action for withdrawal of the land allotment,
citing project execution delays.
DLF Ltd got a new lease of life for its 'stalled' project in Gandhinagar with the state government's
recent nod to the developer's plans. The Delhi-based realtor had in 2007 bought 25 acres of land from
the state government for about Rs 50 crore.
Six years later, Gujarat government had initiated action for withdrawal of the land allotment, citing
project execution delays. Recently, the government was forced to revisit its 2013 decision after DLF
won an appeal against the government's decision.
"Misinterpretation of technical jargon led to misleading translation causing the confusion," said a
government official in the know of the development. The project is back on track, he said.
DLF had challenged the Gujarat government's move to cancel its project before the Special Secretary
(Dispute) Revenue Appellate Authority.
The real estate developer told the authority that presence of high-tension wires in the area and
requirement of certain approvals from Special Economic Zone (SEZ) authorities had caused the
delay, said an industry official close to the development.
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/gujarat-government-gives-nod-for-dlfs-it-park-in-gandhinagar/71006254
The developer has already pumped in about Rs 100 crore in the project and has lined up further
investment of Rs 200-300 crore, the official said.
DLF got this land for developing an SEZ but later approached the state government to de-notify it for
building an IT park. The request was granted by the Gujarat government in 2009.
The project landed in controversy when some Congress leaders protested the government's decision
to allot prime land to the developer at a concessional rate.
The land parcel was allotted at Rs 5,000 per square metre which according to the Congress leaders
was much less than the then prevailing market rate of Rs 30,000 per square metre.
An inquiry in the matter by a government appointed commission, headed by retired Supreme Court
judge Justice M B Shah, gave a clean chit to the Gujarat government in the matter.
The country's largest real estate developer by market value had originally planned to invest Rs 850
crore for the Gujarat project planning to develop 2.5 million square feet of workspace.
A company official close to the development declined to comment on the matter.
___________________________________________________________________
Delhi HC dismisses builders' plea on inter-relationship of RERA &
Consumer Protection Act
The petition was filed by M3M India, Today Homes and Infrastructure, Ansal Crown
Infrabuild, Three C Shelters, Spaze Towers, Umang Realtech, among others.
Delhi High Court (HC) on Wednesday dismissed a plea filed by over 10 builders questioning the
inter-relationship of RERA and Consumer Protection Act (CPA), 1986.
The petition was filed by M3M India, Today Homes and Infrastructure, Ansal Crown
Infrabuild, Three C Shelters, Spaze Towers, Umang Realtech, among others.
According to the builders' petitions filed under Article 227 of the constitution it was questioned
whether proceedings under CPA can be commenced by home buyers against developers, after the
commencement of RERA.
While deciding on the matter, Delhi HC referred to the Supreme Court's (SC) verdict in matter
related to Pioneer Urban Land and Infrastructure which was delievered on August 9, 2019. In the
order SC had stated that remedies given to allottees of flat/apartments are concurrent, and such
allottees are in a position to avail of remedies under CPA, RERA, as well as trigger the provisions of
the Insolvency and Bankruptcy Code 2016.
However, builders argued that the finding of SC regarding concurrent remedies is applicable to cases
where complaints under CPA were instituted prior to RERA coming into force, in which case, RERA
gives the allottee an express option to withdraw pending proceedings under CPA, and proceed under
RERA instead.
Justice Prateek Jalan however noted that the issue was evidently raised before the SC, the apex court
noticed the relevant statutory provisions and rendered a clear and definite finding.
National Consumer Disputes Redressal Commission (NCDRC) in its order dated April 15, 2019, had
also said that the remedies offered under CPA and RERA are concurrent and jusrisdiction of the
forums/commissions constituted under CPA is not ousted by RERA.
"Therefore, it is held that the remedies available to the respondents herein under CPA and RERA are
concurrent, and there is no ground for interference with the view taken by NCDRC in these matters,"
said Jalan.
Homebuyers in the case were represented by advocate Aditya Parolia and Piyush Singh of PSP
Legal.
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-hc-dismisses-builders-plea-on-inter-relationship-of-rera-consumer-protection-act/71013236
___________________________________________________________________
South Delhi civic body plans amnesty scheme to waive property tax
dues
"In the past, we have provided relief to tax payers in the authorised colonies, but now, we aim
to extend the benefit to the unauthorised ones. Also, they are not in the position to pay such
huge amounts," Gupta said.
South Delhi Municipal Corporation (SDMC) is likely to come up with an amnesty scheme in the next
two months to waive property tax due in unauthorised colonies till financial year 2016-17.
SDMC standing committee chairman Bhupender Gupta, on Thursday, asked the department
concerned to prepare a draft of the scheme to provide relief to the assesses of unauthorised colonies,
rural and urban villages.
"In the past, we have provided relief to tax payers in the authorised colonies, but now, we aim to
extend the benefit to the unauthorised ones. Also, they are not in the position to pay such huge
amounts," Gupta said.
He added that the departments have been asked to accept self-declaration of property owners, which
would be from the year of possession, as a certificate for calculating the house tax. "The decision will
come a long way in extending the tax net. Apart from this, they become regular in depositing their
property tax every year," he said.
To simplify the process, SDMC will look for easier method than the unit area for these
neighbourhoods. "The next amnesty scheme will include the cases assessed under rateble value
method where demand is outstanding on March, 2019,"said Gupta.
Clarifying its stand on the loopholes shown in the audit report tabled in standing committee meeting
last week, the leader of house Kamaljeet Sherawat said the outstanding amount includes over Rs 600
crore, which is due from DDA.
The audit report flagged that SDMC did not collect the property tax of Rs 1,177.5 crore from both
the government and the private properties during the period prior to 2004.
_________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/south-delhi-civic-body-plans-amnesty-scheme-to-waive-property-tax-dues/71011502
DLF's stock slips 4.7% over alleged relationship with Indiabulls Group
"The said allegations are malicious and are completely and unambiguously denied by us," DLF
said in regulatory filings at stock exchanges.
Shares of real estate major DLF slipped by 4.7 per cent in the morning trade on Friday even though
the company denied allegations of a relationship with the Indiabulls Group.
A draft of a purported Public Interest Litigation has been circulating on social media which makes
certain unfounded allegations in respect of the relationship between DLF Group and Indiabulls
Group, more specifically Indiabulls Housing Finance Ltd. Similar allegations had also been
circulated a few months back.
"The said allegations are malicious and are completely and unambiguously denied by us," DLF said
in regulatory filings at stock exchanges.
DLF Group has had financing transactions with the Indiabulls group since 2011 and all such
transactions were completed on an arm's length basis. Such transactions were fully compliant with all
legal requirements and regulations, it said.
"Following inflow of money through qualified institutional placement (QIP) and contribution made
by promoters towards warrants, we repaid all loans taken from Indiabulls by June 30, 2019 ahead of
schedule, except for one loan of Rs 175 crore which was down sold by IBHFL to a foreign bank and
is reflected in our books as such. As on date, no other amounts are owed by any DLF group company
to IBHFL or any other Indiabulls company," it said.
"We also emphatically deny any allegations of any other irregularity in any aspect of our past
relationship with Indiabulls. It may be pointed out that in 2014, a few years after we had commenced
the financing relationship with Indiabulls, in a completely unrelated transaction, we had advanced
certain money for a potential real estate opportunity with a company owned by promoters of
Indiabulls," the company added.
The DLF continued, "However, due to lack of tangible progress, the transaction was eventually
called off and the entire money was refunded. As on date, the DLF Group has no exposure or
investment in the Indiabulls group or any of the ventures of its promoters."
"We once again reiterate that allegations to the above effect are completely baseless and unfounded.
We are issuing this clarification only in the interest of our investors and in order to put at rest
unnecessary speculation on this issue," it said.
At 11:50 am, DLF was trading 4.7 per cent lower at Rs 151.80 per share while Indiabulls Housing
Finance dipped by 5.5 per cent to Rs 423.05 per share.
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/dlfs-stock-slips-4-7-over-alleged-relationship-with-indiabulls-group/71010754
___________________________________________________________________
Huda to e-auction over 100 commercial sites in Panchkula
According to the information given by the Huda officials, two dates have been finalized for the
e-auction - September 20 and October 21.
The Haryana Urban Development Authority (Huda) would e-auction 103 commercial sites in 11
sectors of the city by the end of September.
According to the information given by the Huda officials, two dates have been finalized for the e-
auction - September 20 and October 21.
Residents can register for e-auction from August 29 but the exact details are yet to be finalized.
Sources informed that around 103 commercial sites in Panchkula would be up for offer during the
first e-auction.
The Huda officials are conducting a survey of physical availability of the sites and a list will be
prepared by September 15, the sources said.
They added that eight commercial sites in Sector 4, six sites in Sector 8, 11 sites in Sector 9, six sites
in Sector 10, three sites in Sector 11, three sites in Sector 12, seven sites in Sector 14, 15 sites in
Sector 15, 21 sites in Sector 16, 10 sites in Mansa Devi Complex (MDC) Sector 4 and 6 sites in
MDC Sector-5 would be up for offer as told by the Huda officials.
These commercial sites include Shop-cum-office (SCO), Double Storey Structure (DSS), Shop-cum-
Flat (SCF) and booths. The officials said that anyone can participate in the e-auction after registering
on their website www.hsvphry.org.in. Those interested have to deposit 2% of the reserve price of the
property to take part in the e-auction.
The reserve prices of the property will be decided by the Huda administrator after the completion of
survey of the sites.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/huda-to-e-auction-over-100-commercial-sites-in-panchkula/71010879
NCDRC orders Unitech to refund Rs 4.82 crore to home buyers
The commission also directed Unitech to pay Rs 25,000 each to the eight home buyers as cost of
litigation within three months.
The country's apex consumer commission has directed Unitech to refund within three months Rs
4.82 crore received from eight home buyers along with compensation for delay in handing over
possession in one of its projects which was to develop in Gurgaon.
The National Consumer Disputes Redressal Commission (NCDRC), in eight similar orders, has
directed the real estate giant to pay compensation at the rate of 10 per cent on the principal amount
paid by each home buyer, from the date of payment till the day refund is given.
"The opposite party (Unitech) shall refund the entire principal amount received from the complainant
along with compensation in the form of simple interest at 10 per cent per annum from the date of
each payment till the date of refund," said NCDRC Presiding member V K Jain.
The commission also directed Unitech to pay Rs 25,000 each to the eight home buyers as cost of
litigation within three months.
The complainants had booked residential flat with Unitech in its project 'Unitech South Park'.
Unitech had promised the home buyers to deliver possession of their respective flats within 36
months of the execution of the agreement.
The complainants alleged that possession was not offered to any one of them despite having paid
different amounts to the company.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ncdrc-orders-unitech-to-refund-rs-4-82-crore-to-home-buyers/71012408
Noida Authority cancels lease deeds of SBI, Canara Bank, others
Others include Gopala Hotels at B 12 Rajnigandha shopping complex sector 15 (which owes
authority a sum of Rs 3.32 crore and KK Mishra of 1A block G sector 3 (owes Rs 1.61 crore).
The Noida Authority on Wednesday issued a recovery certificate following cancellation of lease
deed of three banks, a hotel and an individual allottee for non-clearance of revenue dues towards the
Authority.
These include State Bank of India, B block sector 2 which owes Noida Authority a sum of Rs 144.13
crore, Canara Bank which owes Rs 6.16 crore and Vijaya Bank owes Rs 1.67 crore in sector 6.
Others include Gopala Hotels at B 12 Rajnigandha shopping complex sector 15 (which owes
authority a sum of Rs 3.32 crore and KK Mishra of 1A block G sector 3 (owes Rs 1.61 crore).
"We will be cancelling more lease deeds of defaulters in coming days who have not cleared their rent
dues towards Authority," said Ritu Maheshwari CEO Noida Authority.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-cancels-lease-deeds-of-sbi-canara-bank-others/71002498
Bombay HC quashes NGT notice to Panchshil Realty's Trump Tower
project
“The project was then unoccupied and the developer did eventually set up an STP before
securing a final occupancy certificate from the Pune Municipal Corporation,” Panchshil‟s
lawyer Shrinivas Patwardhan told TOI on Friday.
The Bombay high court has quashed the National Green Tribunal‟s (NGT) notice of November 22,
2017, asking city-based Panchshil Realty to show cause why a penalty should not be imposed on the
developer for not setting up a sewage treatment plant (STP) at its Trump Towers project in
Kalyaninagar.
“The project was then unoccupied and the developer did eventually set up an STP before securing a
final occupancy certificate from the Pune Municipal Corporation,” Panchshil‟s lawyer Shrinivas
Patwardhan told TOI on Friday.
The HC bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre observed in an order
on September 4, “The NGT could have at best directed the Maharashtra Pollution Control Board
(MPCB) to pass necessary orders pursuant to the notice of March 10, 2017, issued (to Panchshil) by
the MPCB and not to take over the task of passing final order pursuant to the notice in question. The
reason is obvious. The statutory right of appeal available to the petitioner (Panchshil) was being
taken away by the NGT.”
The NGT‟s impugned (under challenge) notice had followed its order on November 20, 2017, in an
application filed in July 2015 by one Subhash Patil canvassing the cause of pollution of the Mula-
Mutha river water due to discharge of untreated effluent and the river getting reduced to a drain.
The tribunal‟s notice also came at a time when the MPCB had already issued a show-cause notice to
Panchshil on March 10, 2017, and its final order was still pending.
Panchshil pleaded in its petition that the NGT had exceeded its jurisdiction by taking over the task of
passing a final order and notice. Thereby, denying them the right to appeal (which incidentally lies
before the NGT) in case the MPCB‟s final order went against them.
The bench observed, “The show-cause notice issued by MPCB itself informs the project proponents
(Panchshil) that action proposed against them was firstly to disconnect the water and electricity
supply to the project and secondly to initiate action under the Environmental Acts and Rules. Thus,
the NGT could have at best directed the MPCB to pass necessary orders.”
“Under the circumstances, we dispose off the writ petition quashing the notice issued by the NGT to
the petitioner, but simultaneously direct the MPCB to pass a final order pursuant to the show-cause
Newspaper/Online ET Realty (online)
Date September 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/bombay-hc-quashes-ngt-notice-to-panchshil-realtys-trump-tower-project/71019001
notice, which was issued to the petitioner by the board on March 10, 2017,” the bench ruled.
Responding to Patil‟s application, the NGT had directed the state and the MPCB to file their
affidavits. The MPCB had submitted that 30 out of 189 project proponents in Pune had not complied
with the provisions of the Water (Prevention and Control of Pollution) Act, 1974.
It had named Panchshil among these 30 “non-compliant” project proponents and told NGT that it
would take action as proposed under the show-cause notices already issued to them. The NGT then
directed show-cause notices to the 30 project proponents.
___________________________________________________________________
Chandigarh Housing Board demolishes two illegal structures in Sector
40
The enforcement wing of the CHB has demolished 39 illegal constructions in the city till date.
The Chandigarh Housing Board (CHB) on Thursday demolished two free unauthorised constructions
in sector-40 and one more demolition of fresh unauthorised construction was scheduled for
demolition but the structure was demolished by the allottee himself prior to the exercise of the CHB.
The enforcement wing of the CHB has demolished 39 illegal constructions in the city till date. The
teams have identified 168 fresh construction cases in the city. The staff had even issued on the spot
challans to violators.
According to the procedure decided by the CHB, in case the allottee does not stop the ongoing illegal
constructions then it will be demolished on the very next day.
However, if the ongoing illegal constructions are stopped, the allottee will be given three days to
remove the violations. After the stipulated time period, the CHB officials will conduct a fresh
inspection and in case of non-removal of the violations, a demolition programme, at the risk and cost
of the allottee, will be scheduled to raze such structures.
A senior CHB official said that though necessary precautions are taken during the demolition, there
is still a possibility that adjoining structures may get damaged and the allottee will be responsible for
such extra damage to their own or adjoining units.
The committee dealing with need-based changes found that about 90% of the CHB dwelling units
had some or the other structural violation. The changes include additional rooms and toilets,
conversion of balconies into rooms and of courtyard, and building stairs on government land.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 06, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-housing-board-demolishes-two-illegal-structures-in-sector-40/71005753