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TRANSCRIPT
08-August-2019
Page 2 of 48
CREDAI Bengal Daily News Update | 08.08.19
WEST BENGAL NEWS
Kolkata Port Trust repossesses 43 lakh sq ft plot from Metal Box India
The plot was in the possession of Metal Box India Ltd for which rent is due since 1985.
Following a prolonged legal battle, the Kolkata Port Trust (KoPT) finally succeeded in getting back
possession of a plot measuring nearly 40,476.90 square metres at the Hide Road Extension near
Taratala on Tuesday.
The plot was in the possession of Metal Box India Ltd for which rent is due since 1985.
―There was an eviction order in our favour under the Public Premises Act. This order dates back to
January 18, 2010. For over nine years now, we have been trying to get the illegal occupiers to move.
Metal Box India, to which the plot had been let out, owes us Rs 55 crore in rent since 1985. The
annual rent now is Rs 2.45 crore plus GST and KMC tax. Finally, our security personnel took
possession of the plot on Tuesday,‖ a senior KoPT official said.
Over the last few years, KoPT has started a drive to take possession of disputed plots. In most cases,
the original lessees sub-let the plots without the knowledge of KoPT.
These illegal occupants fail in their rent payment but continue to hold on to the plots well after expiry
of the lease period, forcing KoPT to take legal steps. Since July, courts have ruled in the KoPT‘s
favour for eviction of several such occupants of warehouses along the Strand Road.
According to another KoPT official, the commercial land owned and let out by the port is prime in
nature. It is illegal to allow such public land to be used by people who do not pay rent and have no
proper lease agreement.
Such illegal occupants also do not have proper safety measures resulting in fires and other accidents.
The port has now realised that if these plots are let out at market rates, it would pay a large part of
KoPT‘s expenses, particularly the huge pension fund.
―We are now taking up the matter very seriously. This should be a lesson to others that we won‘t
allow any plot to be occupied illegally,‖ KoPT chairman Vinit Kumar said.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/kolkata-port-trust-repossesses-43-lakh-sq-ft-plot-from-metal-box-india/70571536
Page 3 of 48
OTHER NEWS
NHB's move to ban subvention scheme must be withdrawn: CREDAI
CREDAI President Satish Magar demanded that interest rate on home loan be brought down to
7.5 per cent to boost housing demand.
The National Housing Bank's (NHB) decision to ban lending by housing finance companies under
subvention scheme was "impulsive" and should be rolled back to boost sales, realtors'
body CREDAIChairman Jaxay Shah said here on Wednesday.
CREDAI President Satish Magardemanded that interest rate on home loan be brought down to 7.5 per
cent to boost housing demand. The additional deduction of Rs 1.5 lakh on home loan interest,
announced in the Budget, should be provided to all borrowers without any cap of Rs 45 lakh
apartment price.
Last month, the NHB asked housing finance companies (HFCs) to "desist" from offering loans under
subvention scheme, wherein real estate developers pay home loan interest on behalf of homebuyers
for a certain period.
The direction was issued by the NHB in view of several complaints of frauds allegedly committed by
certain builders using subvention schemes.
"The restriction on subvention scheme was an impulsive decision of the government," Shah said here
at CREDAI's national conference NATCON here.
He termed the decision as "immature" and said it was taken without any consultations with
stakeholders.
Shah demanded that the restriction on this scheme be withdrawn as it was for the benefit of
homebuyers.
On NHB's concern over complaints under this scheme, he said there should be proper monitoring and
regulations of loans disbursed under this scheme.
With multi-year slowdown in housing demand, real estate developers and banks introduced the
subvention scheme to boost sales of apartments. Homebuyers did not have to bear house rent and
interest on home loan because of this scheme.
On challenges faced by the sector, CREDAI Secretary Pankaj Goel said the liquidity crunch is the
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/nhbs-move-to-ban-subvention-scheme-must-be-withdrawn-credai/70580306
Page 4 of 48
main issue at this point, with banks and non-banking financial companies (NBFCs) not lending to
developers.
He said the real estate regulators established under RERA should be the first point for redressal of
homebuyers' grievances.
Real estate regulators could refer the matter to the National Company Law Tribunal (NCLT) for
insolvency process or any courts, if matters remain unresolved, Goel said.
In its circular, NHB had said, "Based on a review of the matter, HFCs are advised to desist from
offering loan products involving servicing of the loan dues by builders/developers etc. on behalf of the
borrowers."
It had clarified that the stipulation related to subvention scheme would also be effected in cases
wherein the HFC is yet to commence disbursements under the sanctioned case.
____________________________________________________________________
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RBI unveils measures to boost confidence in NBFCs
First, it has brought the single-borrower exposure limit for bank lending to NBFCs to 20% of
the lender’s capital as compared to 15% earlier.
In its monetary policy, the RBI has gone all out to revive confidence in well-functioning entities in the
non-banking finance company (NBFC) sector.
First, it has brought the single-borrower exposure limit for bank lending to NBFCs to 20% of the
lender‘s capital as compared to 15% earlier. Second, it will recognise bank lending to registered
NBFCs for selected purposes as priority sector lending.
These segments include NBFCs that lend for investment credit in agriculture up to Rs 10 lakh, or
micro, small and medium enterprises (MSMEs) up to Rs 20 lakh, and housing up to Rs 20 lakh per
borrower. At present, bank loans to NBFCs for housing is reckoned as priority sector, but only for
loans up to Rs 10 lakh.
―The increase in the on-lending cap for priority sector advances for home loans from Rs 10-lakh loan
ticket to Rs 20-lakh ticket will encourage banks to lend more to housing finance companies (HFCs).
This will further boost lending by HFCs in the affordable housing segment,‖ said LIC Housing
Finance MD & CEO Siddhartha Mohanty.
―Permitting banks to on-lend through NBFCs for priority sector lending would make this transmission
faster and more efficient. This also would significantly improve the MSME functioning in the current
environment and ultimately contribute to faster growth of the economy,‖ said Shriram Transport
Finance MD & CEO Umesh Revankar. He said that the move was timely as the overall demand picks
up after the festival of Ganesh Chaturthi, which falls in September.
A statement by RBI governor Shaktikanta Das that the central bank will endeavour to ensure that none
of the systemically important NBFCs fail has also inspired confidence in the market.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/rbi-unveils-measures-to-boost-confidence-in-nbfcs/70580196
Page 6 of 48
Private equity inflows in realty rise 10% on thriving commercial
segment
Private equity firms have invested over $4.2 billion into the Indian realty market, up 10% from
a year ago.
Driven by the investment appetite for commercial properties, private equity inflows into Indian real
estate sector have been strengthening, mainly because of foreign funds‘ direct exposure and platform
alliances.
Private equity firms have invested over $4.2 billion into the Indian realty market, up 10% from a year
ago. But investments in the second quarter saw a 34.4% sequential decline, revealed data from
Cushman & Wakefield. Non-banking finance companies‘ (NBFC) lending activity coming to a halt
with a dearth of refinance available for residential segment contributed to the deceleration in the
quarterly fund flows.
―We expect that the activity in the commercial sector, primarily office, to continue strongly, with
retail platforms and acquisitions of key retail developments also on the cards. Warehousing/logistics is
likely to find strong investor support through existing dry powder and plans are being firmed up by
global players,‖ said Anshul Jain, country head & managing director, Cushman and Wakefield India.
He expects the residential segment to face further strife as NBFCs grapple with liquidity woes and
expects consolidation among developers and NBFCs.
In fact, investments in the residential segment during the first half of 2019 were the second lowest in
the past five years since 2015, standing at just Rs 5,610 crore.
The office segment remains a hot investment target, garnering Rs 6,280 crore from institutional
investors, accounting for 54.1% share of the total investments in the second half of 2019. The
investments were higher by almost 37% in the first half of 2019, compared with the same period last
year.
―In terms of enquiries and interest for deal making and fund infusion, the commercial segment
continues to attract robust attention. While rental housing and coliving are also finding a mention in
probable investment discussions, warehousing and logistics are proving to be a major pull for
investors,‖ said Subhash Udhwani, founder of real estate-focused boutique investment bank Elysium
Capital.
Strong office demand, low vacancies and rising rents continue to keep the momentum going in private
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/private-equity-inflows-in-realty-rise-10-on-thriving-commercial-segment/70580377
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equity activity. The success of the Blackstone-Embassy REIT has also infused momentum in the
commercial office investment space with key learning for institutional investors around portfolio
creation, management and returns.
Retail and warehousing and logistics sectors attracted 12.1% and 7.9% share, respectively, in the 2019
second quarter fund flow. Half yearly investments in both these asset classes strengthened with a
growth of 21% and 62% on yearon-year basis, respectively. ADIAbacked Lake Shore India Advisory
invested ?1,400 crore in an ongoing retail project in Gurugram in a key deal in the retail asset class
during the second quarter.
At a city level, Mumbai attracted the highest investment inflows at Rs 6,100 crore with a 52.6% share
of the fund flows during the quarter. This was followed by Pune and Delhi NCR attracting 12.5% and
12.1% of the funds, respectively. Multi-city investments, all of which were in the office sector,
constituted 15.0% of the quarterly fund flows.
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Before bank merger, expect 15-20% book growth as an HFC: Gagan
Banga, Indiabulls Housing
Since we announced our merger in April this year, we have been focusing on making sure that
impediments to the bank merger are done away with.
Through a large part of Q2, we would continue to remain focussed on reducing our commercial real
estate exposure, says Gagan Banga, VC & MD, Indiabulls Housing Finance. Excerpts from an
interview with ETNOW.
Overall it has been a tepid quarter for Indiabulls. Both profits and net interest incomes saw
degrowth in this quarter. What has led to the decline in profits?
Since we announced our merger in April this year, we have been focusing on making sure that
impediments to the bank merger are done away with. We have been focused on reducing our
commercial real estate books. Over the course of the last quarter, we have bought it down by over Rs
6,000 crore just by refinance etc.
Regular amortisations have happened on the side. Given that we have disbursed over Rs 7,500 crore,
the overall book has come down because the repayments of home loans and LAP have also been
pretty strong. The company is essentially following a philosophy where over the short term, we want
to continue to reduce commercial real estate exposure, focus on bank merger, preserve liquidity and
remain extremely strong on capital adequacy.
Our liquidity has actually gone to very high levels and today over 29% of our borrowings are covered
by our cash and liquid investments of about Rs 28,000 crore. That will generally be the theme of the
quarter and through quarter one, we are focussed on this. Through a large part of Q2, we would
continue to remain focussed on reducing our commercial real estate exposure.
Coming to the asset quality, gross NPAs were up 56% quarter on quarter. What led to the
decline in asset quality?
We were fortunate to have a large recovery last quarter and in continuation with our policy of creating
provisions, we have tried to accelerate some loans which could have otherwise continue to remain as
part of our stage 2 assets and created provisions around that. All or most of the increase in the gross
NPA can be attributed to the fact that we have chosen to utilise the provision release that we got out of
the large recovery that we did from the sale of Palais Royale.
There is also a marginal impact coming from the fact that same time last year our base was almost Rs
10,000 crore higher. So, it is partially an outcome of a lower base and also our desire to not bump up
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/before-bank-merger-expect-15-20-book-growth-as-an-hfc-gagan-banga-indiabulls-housing/70580347
Page 9 of 48
profits because of the provision release.
In our recent media interactions, we have been talking about the Rs 4,000-5,000 crore buffers that we
carry and we would want to use that towards provisions rather than increasing our profitability in the
short term. We believe that kind of a buffer is a huge strength of the company and the recovery that
we did last quarter has just demonstrated the strength.
So which are the segments which are showing higher signs of stress and what is your outlook
going forward on the asset quality trends for the coming quarters?
Gross NPLs will stay in the range of 1.5% or so. We would continue to use the buffers if required, to
make higher provisions. Overall, the bulk of the book continues to perform well and we are being
proactive in recognising stress in the construction finance or any such space. I would not say that there
is any alarm bell ticking there. 1% to 1.5% kind of gross NPLs given the environment in which we are
operating, are actually healthy figures.
At what stage is your merger with Lakshmi Vilas Bank and what all documentations are still
required?
Following our announcement in April, in early May we approached all the various regulatory bodies
through which we need to get an approval -- the Reserve Bank of India, the Competition Commission,
stock exchanges, SEBI, National Housing Bank, etc. We have already received the Competition
Commission approval. We are awaiting the other approvals.
The Reserve Bank of India approval is actually the most critical approval following which the other
approvals will potentially follow as an outcome of NCLT. So NCLT will call out to shareholders. We
are engaged with the Reserve Bank. It will be inappropriate for me to be talking about the exact
exchange. I am optimistic that over the next 45 to 60 days we will hear back from the central bank.
Margins they continue to remain under pressure given that the environment is slightly tough
right now for NBFCs and HFCs. Where do you see your margins stabilising?
For a while, we have been talking about margins in the range of 3-3.25%. As our commercial real
estate book (a higher yielding book) declines, the spreads come down a little bit. But that is now
starting to get compensated by our enhanced focus on SME lending. I am still quite confident that we
will stay in the range of 3 to 3.25%. We ended last quarter at 3.14%.
You have also continued to reduce your exposure to CPs. Given the current scenario, how do
you see your borrowing mix shaping up for the next one to two years?
At this point in time, we are more focussed on the bank merger and therefore putting all our energies
behind that. It is resulting in the real estate book coming off which itself is resulting in a fair degree of
liquidity. From that perspective, we will be doing opportunistic borrowing but a large part of our fund
requirement would be generated internally by portfolios running down.
We did a $350-million bond offering last quarter after achieving a BB plus rating on an international
level. Those kind of opportunistic borrowings will continue to be done. Our cash levels are extremely
high and rather than doing very high cost borrowings, I would rather continue to use internal accruals
to raise whatever liquidity is required for our disbursements.
How do you see the disbursements panning out, what will be the focus area then?
Page 10 of 48
This quarter on a gross basis, we will be looking forward to do about Rs 10,000 crore of
disbursements as against Rs 7,500 crore of disbursements that we have done in Q1 and Q4. That
number will continue to increase through Q3 and Q4. A large part of that disbursement will be
towards the SME segment and whatever our partially disbursed cases are, we will continue to do that
and make sure that our projects continue to do well. All in all, in Q2, we will look at disbursals of
about Rs 10,000 crore.
Business has slowed in the quarter and loan assets have seen a de-growth of about 10%. What is
your outlook on loan growth for the entire fiscal?
We are still quite confident that a large part of our commercial real estate realignment is already
behind us. It need not continue at the same pace. We did a large securitisation transaction in Q3 while
Q4 and Q1 this year were about focussing on reducing the commercial real estate book both from a
risk management as well as a bank merger perspective.
After this quarter we will be at a steady run rate of Rs 2,000-3,000 crore decline in commercial real
estate and our focus on SME has increased. As far as the second half of the year is concerned, I am
still looking at fairly healthy loan book growth. For the year, I am quite confident that as a housing
finance company prior to the bank merger, our book growth should be in 15-20% range.
___________________________________________________________________
Page 11 of 48
Homebuyers can file claim even after resolution plan is passed: NCLT
The Regulation No. 12 (2) of IBBI (CIRP) Regulations, 2016, provides a time limit of 90 days
from the CIRP Commencement date to submit the claims.
In a landmark judgement, National Company Law Tribunal (NCLT) has allowed submission of claims
by home buyers even though the time period for submission has elapsed and resolution plan for an
insolvent company has been approved by the committee of creditors (CoC).
The court gave the order in a case related to Appu Ghar Retail, a project which was being developed
by International Recreation & Amusement in Sector 29, Gurugram. However, Corporate Insolvency
Resolution Process (CIRP) was initiated against the company in August 2018 and Pramod Kumar
Sharma was appointed as the Resolution Professional (RP).
As per regulations, last date for submission of claims was November 11, 2018. The claims were
however accepted till April 25, 2019. The CoC approved the resolution plan, which was filed
by HGAS Apex JV, on May 22, 2019.
"Many allottees of the real estate project missed the time line because they were unaware of the
initiation of CIRP," said Sowmya Saikumar, advocate representing a home buyer.
However when they reached the RP, it rejected the claims saying that final revised/amended plan has
already been obtained from the resolution applicants and in order to provide crystallised information
of liability to resolution applicants, the claims cannot be accepted.
One of the home buyers filed a plea in NCLT pleading that their claims be accepted. On hearing the
matter, NCLT directed the RP to accept the claims.
"It is a respite to allottees of real estate projects who miss timelines because of being unaware of the
initiation of insolvency process. Now their claims can be accepted even at a belated stage i.e. even
after a resolution plan has been approved by CoC and pending adjudication before NCLT," said
Saikumar.
The Regulation No. 12 (2) of IBBI (CIRP) Regulations, 2016, provides a time limit of 90 days
from the CIRP Commencement date to submit the claims.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/homebuyers-can-file-claim-even-after-resolution-plan-is-passed-nclt/70575046
Page 12 of 48
Grexter Living acquires i2Stay
With this, it has added 2,000 new beds to its inventory, taking its total count of beds to over
5,000 beds in Bengaluru.
Grexter Living, a co-living provider, has acquired i2Stay. The company said that it‘s a combination
of cash and equity deal but declined to divulge further details.
Post the acquisition, Rajasekhar Gowreneni, CEO of i2stay, will join Grexter Living as the managing
partner for South India.
With this, it has added 2,000 new beds to its inventory, taking its total count of beds to over 5,000
beds in Bengaluru.
It has also taken over some built-to-suit projects which i2stay has been working on.
The company aims to foray into Pune and Hyderabad by 2020.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/grexter-living-acqui-hires-i2stay/70569916
Page 13 of 48
Bihar government allows registration of flat even if project not
approved by RERA
However, any of the dwellings in that apartment had to be registered with excise, prohibition
and registration department till August 30, 2018.
The state cabinet on Tuesday approved the Bihar Registration (Amendment) Rules 2019, which
allows registration of flats even if the project was not registered with Real
Estate Regulatory Authority (RERA), Bihar but any of the dwellings in that apartment had been
registered with excise, prohibition and registration department till August 30, 2018.
Principal secretary in the cabinet secretariat department, Sanjay Kumar, said the cabinet cleared total
27 proposals, including sanctioning Rs 600 crore for flood rehabilitation works. More than 88 lakh
people in 13 districts were affected by the floods due to torrential rainfall in the catchment areas of
rivers flowing from Nepal to Bihar between July 10 and 14.
Sanjay, who is also the principal secretary of health department, said the cabinet also approved a
health department proposal to give handloom cloths to the patients admitted in government medical
college and hospitals. ―Such clothes to the patients will ensure better infection management in
government hospitals,‖ he said.
In another important decision, the state cabinet approved a proposal for extending subsidy to the tune
of Rs 70,000 to people from economically weaker sections (EWS) for purchasing e-rickshaws.
Sources said five families in every panchayat can be provided with the subsidy and the government
will spend Rs 300 crore on this head.
In another decision, the cabinet gave its nod to online application for ‗choice‘ vehicle registration
numbers. Vehicle owners will now be able to apply for choice registration numbers through the
website of transport department by paying an amount in the range of Rs 15,000 to 1 lakh.
―The transport department has identified 641 such fancy numbers. Additional Rs 10,000 will be
required to be paid in case of registration numbers required beyond the list,‖ Sanjay said.
The state cabinet also sanctioned a proposal to increase the annual uniform allowance for group-D
employees attached with judges. The state government has increased the amount from Rs 5,000 to Rs
10,000.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/bihar-government-allows-registration-of-flat-even-if-project-not-approved-by-rera/70568816
Page 14 of 48
Sebi mulls tighter norms to ensure full disclosure on loan defaults with
rating agencies
The proposal is likely to be presented for approval by Sebi's board at its meeting later this
month, the officials said.
Amid concerns over banks citing 'client confidentiality' to resist sharing of information on delayed
loan repayments and possible defaults by their borrowers, capital market regulator Sebi is planning to
tighten its norms to make it mandatory for companies to provide these details to credit rating
agencies.
Amid numerous cases of huge loan defaults by corporates, including in cases like Infrastructure
Leasing and Financial Services Ltd (IL&FS), credit rating agencies have also come under the scanner
for failing to flag potential credit risks of the securities and entities rated by them.
However, the rating agencies have often sought to shift the blame to the companies and lenders by
claiming that they find it difficult to get information about delay in meeting bank obligations and
payment failures which are considered early indicators of a default.
Officials said there have been occasions when some entities have sought to take the benefit of
certain regulatory gaps as banks are regulated by the Reserve Bank of India (RBI) while rating
agencies and listed companies come under Sebi's jurisdiction, while the problem becomes more acute
in case of unlisted companies.
To fill this regulatory gap, Sebi is now proposing to amend its regulations for credit rating agencies to
ensure that any listed or unlisted entity, before getting rated, gives an explicit consent to obtain from
their lenders and other entities full details about their existing and future borrowings as also their
repayment and delay or default of any nature and provide the same to the rating agencies.
The proposal is likely to be presented for approval by Sebi's board at its meeting later this month, the
officials said.
The move is aimed at helping the rating agencies get timely information about the rated entity's
financial strength and incorporate the impact of these details in their ratings.
The provisions of the rating agreement between a rating agency and its client or issuer of securities is
governed by the Sebi (Credit Rating Agencies) Regulations, framed in 1999.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sebi-mulls-tighter-norms-to-ensure-full-disclosure-on-loan-defaults-with-rating-agencies/70569710
Page 15 of 48
This regulation provides that every rating agency needs to enter into a written agreement with each
client whose securities it proposes to rate and mentions detailed provisions that every such agreement
should include.
As per these regulations, rating agencies are required to continuously monitor the rating of securities
during the lifetime of such securities.
Sebi is of the view that any default or delay in meeting bank obligations are often early indicators of
default on other borrowing obligations of the issuer, an official said.
"However, banks have not been forthcoming in sharing such information with credit rating agencies
citing client confidentiality as a reason," the official added.
In order to address this issue, Sebi had earlier decided to mandate the rating agencies to incorporate an
enabling provision in the rating agreement with their clients.
The official said Sebi had also written to the RBI in May, apprising the banking regulator that the
rating agencies are contemplating incorporating such enabling provision in the rating agreement.
The RBI was also requested to advise banks to provide timely and accurate information to the credit
rating agencies regarding any default or delay in payments by the rated entities, but no response was
received in the matter till last month.
In view of this, Sebi is now proposing to amend its regulations for the rating agencies to insert a
clause requiring the clients to give an explicit consent for obtaining such details from their lenders and
other organisations holding information on their borrowings and provide the same to the raters.
____________________________________________________________________
Page 16 of 48
Courts must stop giving judgements based on public perceptions:
Avneesh Sood, Eros Group
The company claims that a PIL filed before the NGT has stalled its project, being developed in
collaborative agreement with Bharti Realty, worth Rs 4,000 crore.
Avneesh Sood, director of Eros Group, in a media release said that our courts must stop giving
judgements merely on public perceptions on the behest of so-called environmentalists.
"Stalling projects, with all legitimate permissions, will create not only a fear factor among the
business fraternity, but also discourage them to venture into new projects," Sood added.
According to Eros, a Public Interest Litigation (PIL) filed before the National Green Tribunal (NGT)
against a group housing project being developed Ajay Enterprise (AEPL), part of Eros, and Bharti
Realty has stalled the project.
The company claims that the project is worth Rs 4,000 crore.
AEPL was granted a license (No. 20 of 2013) by Director General, Town & Country Planning
(DGTCP) for a project to be developed on 52.825 acres in Sector 43, Faridabad, the company said in a
media release. AEPL had entered into a collaboration agreement with Bharti Realty.
However in March, 2019, the NGT passed an order declaring the project land to be a ―Deemed
Forest‖. AEPL challenged the order in Supreme Court where it said that there shall be no cancellation
of any permissions granted till the matter is heard.
"This clearly indicated that the order passed by NGT is wrong in the eyes of law," said Sood in the
media release.
According to Eros Group's media release, a letter was issued on November 8, 2006 by the Deputy
Conservator of Forest (Faridabad) to the DTCP wherein it is an uncontroverted fact that ―the subject
land is neither a protected, reserved, recorded or unclassified forest‖.
The company claims that Sector 43 has been categorized in the residential zone of Master Plan of
1982 onwards till date. Thus, the subject land cannot be classified to be as forest. The project land has
been a part of the residential zone as per the successive master plans issued since 1982 after due
process of law, said the company in its media release.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/courts-must-stop-giving-judgements-based-on-public-perceptions-avneesh-sood-eros-group/70572857
Page 17 of 48
Owner must act within 12 years or squatter will get rights: SC
As per the Limitation Act 1963, the statutory period of limitation that is allowed for possession
of immovable property or any interest is 12 years in the case of private property and 30 years
for public property, from the date the trespasser occupies the property.
If a rightful owner of an immovable property fails to take action to get back possession within the
limitation period then his rights are lost and person in possession acquires an absolute title,
the Supreme Court ruled on Wednesday, but held that no benefit of adverse possession should be
given to people who encroached upon public land.
As per the Limitation Act 1963, the statutory period of limitation that is allowed for possession of
immovable property or any interest is 12 years in the case of private property and 30 years for public
property, from the date the trespasser occupies the property.
Enumerating the provisions of the Act, a bench of Arun Mishra, S Abdul Nazeer and M R Shah said
the law provided shield to a person who is in possession of the property beyond 12 years and that
person can take action by filing a suit for restoration of possession in case of dispossession.
―We hold that a person in possession cannot be ousted by another person except by due procedure of
law and once 12 years' period of adverse possession is over, even owner's right to eject him is lost and
the possessory owner acquires right, title and interest possessed by the outgoing person/owner as the
case may be against whom he has prescribed. In our opinion, consequence is that once the right, title
or interest is acquired, it can be used as a sword by the plaintiff as well as a shield by the defendant
within ken of Article 65 of the Act and any person who has perfected title by way of adverse
possession, can file a suit for restoration of possession in case of dispossession,‖ the bench said.
It said that a person who has perfected his title by way of adverse possession can file a suit for
obtaining an injunction protecting possession and for recovery of possession in case his dispossession
by a third person or by owner after losing the title. ―In case a person in adverse possession has
perfected his title by adverse possession, after the extinguishment of the title of the true owner, he
cannot be successfully dispossessed by a true owner as the owner has lost his right, title and interest,‖
it said.
The bench said the right by adverse possession should not be applicable in case of encroachment of
public property. ―There are instances when such properties are encroached upon and then a plea of
adverse possession is raised. In such cases, on the land reserved for public utility, it is desirable that
rights should not accrue. The law of adverse possession may cause harsh consequences, hence, we are
constrained to observe that it would be advisable that concerning such properties dedicated to public
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/owner-must-act-within-12-years-or-squatter-will-get-rights-sc/70580289
Page 18 of 48
cause, it is made clear in the statute of limitation that no rights can accrue by adverse possession,‖ the
court said.
__________________________________________________________________
Page 19 of 48
NBCC tells Delhi HC its redevelopment projects to be role models
NBCC was responding to high court’s queries on the status of approvals for the Nauroji Nagar
project, where a World Trade Tower is envisaged.
NBCC on Wednesday informed Delhi high court that its ambitious project to redevelop seven
colonies in the city has several benefits, including improved housing. Comparing the stalled project to
the redevelopment of New Moti Bagh, NBCC maintained that it is a role model for such projects and
hopes to achieve similar standards for the seven colonies.
NBCC was responding to high court‘s queries on the status of approvals for the Nauroji Nagar project,
where a World Trade Tower is envisaged. Apprising the court about how fewer trees were cut due to a
change in the parking plan, NBCC argued that instead of horizontal expansion, vertical parking levels
were increased.
Earlier, the Centre had assured HC that there was no more requirement of water for the project and
that steps had been taken to ensure there was no traffic congestion due to the project. Rainwater
harvesting is a part of the project, the government has said, while defending the terms of reference and
the environmental clearance granted to the housing projects at Sarojini Nagar, Nauroji Nagar, Netaji
Nagar, Thyagaraj Nagar, Kasturba Nagar, Mohammadpur and Srinivaspuri.
The court had questioned the Centre on how a residential area could be converted into a commercial
zone without change of land use, seeking to know if the entire project is exempted from
environmental rules and Delhi‘s master plan.
The petitioner, Kaushal Kant Mishra, has alleged that there was complete ―non-application‖ of mind
by government agencies in granting environment clearance to the Nauroji Nagar redevelopment
project as it failed to consider the impact of traffic and other environmental concerns. Hearing in the
matter will continue later this month.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/nbcc-tells-delhi-hc-its-redevelopment-projects-to-be-role-models/70580412
Page 20 of 48
Commercial circle rates slashed in Gautam Budh Nagar
"We had earlier proposed the reduction in circle rates, seeing a stagnation in the sale of larger
commercial properties in the district.” district magistrate BN Singh told TOI.
With the commercial real estate market going through a slump, the district administration on
Wednesday approved a reduction in circle rates in Gautam Budh Nagar, with effect from August 8.
The reduction is 21% for floor-wise commercial property and 21.5% for individual commercial
property.
This is for the first time that the district administration has reduced circle rates — the minimum value
at which sale or transfer of property takes place — in some categories in Gautam Budh Nagar since
the UP Stamp (Valuation and Property) Rules came into effect in 1997. The administration has also
waived the 25% surcharge for malls and 6% surcharge for group housing societies — 2% each for
club, swimming pool and gym — across the district.
―We had earlier proposed the reduction in circle rates, seeing a stagnation in the sale of larger
commercial properties in the district. Since the proposal did not meet with any objection, we have cut
down the rates to keep them more realistic,‖ district magistrate BN Singh told TOI.
As circle rates for commercial property in Noida has been the highest in Noida‘s sectors 18 and 38A,
the rates in these areas have now been reduced from Rs 4.5 lakh to Rs 3.55 lakh per sq m for shops,
from Rs 3.52 lakh to Rs 2.78 lakh for offices and Rs 3.45 lakh to Rs 2.72 lakh for warehouses.
Commercial property rates are the lowest in areas such as sectors 63A, 69, 95, 103, 106, 109, 11, 123,
138, 145, 150 and Noida Export Processing Zone (NEPZ).
Officials hoped the reduced circle rates will be a relief for investors and homebuyers in Noida as it is
also going to bring down registry charges and stamp duty. ―We realised that the surcharge for
escalator and AC was levied only in Noida malls, and not in Greater Noida or any other neighbouring
city. We were seeing an increasing trend towards renting mall space, rather than buying it,‖ said S K
Tripathi, additional inspector general of the stamps and registration department.
No changes have, however, been made in residential, commercial, institutional, industrial and IT/ITeS
categories in Dadri, Jewar and Greater Noida. ―With the new international airport coming up in Jewar,
it is the most promising area in terms of revenue. In the coming year, we are hopeful that more people
will invest in Jewar, especially in commercial property. So, there is no apparent need to reduce rates
in that area,‖ Singh said.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/commercial-circle-rates-slashed-in-gautam-budh-nagar/70580253
Page 21 of 48
Ramco Cements reports net profit of Rs 191.97 crore in Q1 FY20
The company’s revenues were Rs 1,392 crore, up by 14% y-o-y. “We have achieved highest ever
EBITDA of Rs 367 crore during this quarter.
The Ramco Cements Ltd, on Tuesday said that its profits for the quarter ended June were Rs 191.97
crore, up from Rs 124.98 crore in the corresponding quarter last year, on the back of better cost
control and improved prices.
The company‘s revenues were Rs 1,392 crore, up by 14% y-o-y. ―We have achieved highest
ever EBITDA of Rs 367 crore during this quarter. Our capacity expansion programme is on schedule.
We are confident that we would become 20 million tonnes per annum company by end of 2020,‖
said AV Dharmakrishnan, CEO of the company in a statement. The company sold 2.7 million tonnes
of cement during the quarter (2.61 million tonnes previously). The company said it contributed Rs 19
crore to CM Relief Fund/Political Parties during the quarter.
―Overall result appears to be on expected line. However, higher other expenditures are likely to be a
key negative. Nonetheless, capacity expansion of 6.2 million tonnes (40% of existing capacity) for Rs
5,500 crore ($80/tonne) without stretching its Balance Sheet with Debt Equity Ratio of 0.3x bodes
well for the company,‖ wrote analysts at Reliance Securities in a note.
Ramco is doubling the capacity of the grinding unit in Kolaghat, West Bengal to 2 million tonnes, a
new 0.9 million tonnes unit is coming up in Haridaspur in Orissa, expanding the grinding units in
Vishakapatnam to 2 million tonnes from 0.95 million tonnes. It is also expanding the clinker capacity
in Jayanthipuram in AP from 3 million tonnes to 4.5 million tonnes and a new cement plant in
Kolimigundla in Kurnool district with a clinker capacity of 2.25 million tonnes and a cement capacity
of 1 million tonnes.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/ramco-cements-reports-net-profit-of-rs-191-97-crore-in-q1-fy20/70580218
Page 22 of 48
Ludhiana civic body mulls land sale, rate revisions to beat cash crunch
Moreover, the properties which were given on lease at minimal rates will be considered for rate
revision.
At a time when development works in the city have come to a standstill and the civic body is unable
to give regular salaries to its employees, the MC has planned to sell some of its properties to generate
revenue.
Moreover, the properties which were given on lease at minimal rates will be considered for rate
revision.
The decision to sell prime properties and revise rental and lease rates was taken during MC‘s general
MC house meeting and mayor Balkar Sandhu had formed a committee to zero in on the rates for
selling these properties. The committee included building branch officials and councillors Pal Singh
Grewal, Rakesh Prashar, Gagandeep Bhalla, Sarabjit Singh Laddi, Harjinderpal Lali, Money Grewal
and Sukhbir Singh Dhillon.
The properties which will be auctioned include shops inside Indoor Stadium on Pakhowal Road, MC
land in Prem Nagar near Rose Garden, over 268 square yards of land on the backside of Kailash
Cinema, vacant shops in Bairing market and shops from Raikhy Cinema chowk up to government
school.
The rented sites being considered for rate revision comprise Kundan Vidya Mandir, Arya College,
Krishna Charitable hospital, Khalsa Education College and Dharam Seva Trust.
Rakesh Prashar, a member of the committee, said they have conducted a meeting regarding these
properties and the officials came up with government prices which are very low, so they have been
advised to bring market rates.
Assistant town planner S S Bindra said during the first meeting of the committee members on
Tuesday, only a few properties were discussed in detail, so another meeting will be held on Friday.
Works stalled
The MC is facing an acute financial crunch. The employees haven‘t received salaries for July and the
union members are demanded its release by August 15. Last month too, they had to threaten the
authorities of going on indefinite strike against the non-payment of salaries, following which they
were paid.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ludhiana-civic-body-mulls-land-sale-rate-revisions-to-beat-cash-crunch/70571993
Page 23 of 48
Development works have been stalled and to avoid piling up of proposals, the mayor is reluctant to
conducting the F&CC meetings and even house meetings.
____________________________________________________________________
Page 24 of 48
Vadodara-based builder, two others booked for forging property
documents
Shah is currently hiding in Canada. His two acquaintances - Mainak Patel and Kamlesh
Thakkar - had allegedly planned to usurp a property near Shreyas School in Manjalpur which
was owned by complainant Jaishree Shah.
Real estate developer Bhupendra Shah and two other persons were booked at Makarpura police
station for forging documents of a property for usurping it.
Shah is currently hiding in Canada. His two acquaintances - Mainak Pateland Kamlesh Thakkar - had
allegedly planned to usurp a property near Shreyas School in Manjalpur which was owned by
complainant Jaishree Shah.
Jaishree alleged that when she left for the US in November 2014, the trio filed a case in the court,
making the property disputed. In the court, they produced forged power of attorney which had fake
signatures of Jaishree.
Jaishree has alleged that using the forged power of attorney, Shah got the property in his name and
even broke into the house. ―Shah forged Jaishree‘s signature on her cheque books and got these
cheques deposited,‖ police said.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/vadodara-based-builder-two-others-booked-for-forging-property-documents/70568910
Page 25 of 48
BMC to get tough against those who indulge in illegal constructions
repeatedly
In an order to ward-level officers, the administration said that it was to deter others.
The Brihanmumbai Municipal Corporation (BMC) plans to take Mumbai Police's help to tackle those
who indulge in illegal constructions repeatedly, despite civic notices and action being taken against
them.
In an order to ward-level officers, the administration said that it was to deter others. "Often, despite
notices and taking action, like demolishing the illegal structure, it springs back. To be stern with
repeat offenders, notices will now be issued under MRTP Act, 1966, and police cases will be filed
too," said a civic official, adding that if needed, senior civic officials will co-ordinate with the police
to ensure that cases are registered.
After the recent building collapse in Dongri, which killed 13 persons, assistant municipal
commissioner (B ward) Vivek Rahi was suspended. A random inspection of 10 buildings in that area
by civic vigilance department found gross violation of rules, with full-fledged constructions
undertaken in the name of repairs, at most structures.
Interestingly, after learning that vigilance department officers were on an inspection recently, local
ward staff demolished illegal parts of two buildings.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/bmc-to-get-tough-against-those-who-indulge-in-illegal-constructions-repeatedly/70562719
Page 26 of 48
Hyderabad: Revenue officials stop buildings near Teegalasagar for
breaching rules
However, the lake is caught in a turf war between officials over jurisdictional issues as it falls in
Patancheru mandal, but the area in question comes under Ameenpur mandal.
Revenue officials of Ameenpur have stopped works pertaining to real estate projects
near Teegalasagar in Patancheru after receiving a plaint that buildings are being constructed right on
the full tank level (FTL) of the lake.
Environmental activist Thakur Raj Kumar Singh of Human Rights Forum and Consumer Protection
Cell had lodged a complaint with the officials concerned in Ameenpur alleging that a college, a school
and several buildings were being constructed on the lake bed that violate the FTL rules. He also
presented maps and images of the encroachments to the officials.
However, the lake is caught in a turf war between officials over jurisdictional issues as it falls in
Patancheru mandal, but the area in question comes under Ameenpur mandal.
―We have stopped the construction works of Suryodaya Ventures temporarily after we received the
complaint. We are verifying the allegations. Developers of Suryodaya ventures are claiming that they
had obtained a no objection certificate (NOC) from the irrigation department. We will investigate and
take action, if required,‖ Ameenpur tahsildar J Swamy told TOI.
Raj Kumar Singh, in his complaint to the chief secretary, HMDA, irrigation and vigilance and
enforcement departments, alleged that illegal structures were being built on Teegalasagar cheruvu of
Patancheru and Patelguda villages. The complainant alleged that the sluice outflow nala of the lake
has been totally encroached upon and that the lake bed has also been encroached upon by a college, a
school and another building.
―No construction can be carried out in water bodies, nalas, buffer zone areas and inlets and outlets of
lakes. The HMDA and irrigation officials are allowing constructions and this is a clear violation of
environmental laws. AP Telangana Area Land Revenue Act and AP Land Grabbing Prohibition Act
prohibits construction of such structures. Patelguda grampanchayat must also stop the illegal
constructions and clear the area of all encroachments. Officials must fix FTL and boundaries of the
lake as per water body and flood water nalas using Survey of India maps and satellite imagery. The
lake bund, weir and sluice must be restored and the violators must pay for the damages. Legal action
must also be initiated against officials responsible for allowing the encroachments,‖ the letter added.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/hyderabad-revenue-officials-stop-buildings-near-teegalasagar-for-breaching-rules/70566927
Page 27 of 48
RBI cuts repo rate by 35 bps
This is the fourth cut by the central bank in 2019. The last time the RBI made so many back-to-
back cuts was after the global financial crisis in 2008.
The Reserve Bank of India on Wednesday cut the repo rate by 35 basis points to 5.40% from the
current 5.75 per cent. The reverse repo rate was reduced to 5.15%.
"The decisions are in consonance with the objective of achieving the medium-term target for
consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting
growth," the Reserve Bank said in its bi-monthly monetary policy statement.
This is the fourth cut by the central bank in 2019. The last time the RBI made so many back-to-back
cuts was after the global financial crisis in 2008.
The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Dasmaintained
its "accommodative" stance but said further rate reductions would depend on the level of inflation.
The MPC further said that the domestic economic activity continues to be weak, with the global
slowdown and escalating trade tensions posing downside risks.
The central bank revised its Gross Domestic Product (GDP) growth estimate to 6.9 per cent for this
year from the earlier projection of 7 per cent.
Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks
to reduce interest rates for consumers on loans. Reverse repo rate is at which it borrows from banks.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/rbi-cuts-repo-rate-by-35-bps/70568331
Page 28 of 48
Housing Ministry to award states, banks for PMAY work
The progress is linked with data being uploaded in MIS system by them.
Ministry of Housing & Urban Affairs will award states, union territories, urban local bodies and
beneficiaries for the progress made in constructing houses under Pradhan Mantri Awas
Yojana (PMAY).
The progress is linked with data being uploaded in MIS system by them.
The ministry will also award banks and housing finance companies for their contribution to PMAY
through CLSS scheme.
Over 85 Lakh houses have been under PMAY-Urban. Out of these, around 50 lakh houses are at
various stages of construction and more than 26 lakh houses have already been completed.
It will also reward select beneficiaries from each state, union territory for building their house in a
most aesthetic and innovative manner. To facilitate this, a PMAY(U) mobile application, launched in
February, has been designed for beneficiaries to upload high-resolution photographs and videos clips
highlighting their success stories of owning a house under PMAY (U).
The last date to participate in the awards is August 20.
_________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/housing-ministry-to-award-states-banks-for-pmay-work/70570801
Page 29 of 48
DDA's land pooling window to stay open till September 6
On February 5, 2019 DDA had launched a single-window online portal for inviting registration
under the land pooling policy.
Delhi Development Authority's (DDA) ambitious land pooling policy, which initially didn't get a very
encouraging response from land owners in the capital, has witnessed a spurt in areas being registered
under the policy.
On February 5, 2019 DDA had launched a single-window online portal for inviting registration under
the land pooling policy. The portal was the first step towards operationalisation of the policy for
inviting "expression of willingness" from land owners of contiguous land parcel of any size falling in
five planning zones in the city. The portal was scheduled to be kept open for six months - till August
4. However, DDA has now decided to extend the date.
A DDA spokesperson said that as on August 5, 4,281 applications - amounting to approximately
4,452 hectares of land -have been registered. The area registered under land pooling amounts to
23.3% of the total land that can be developed under the land pooling policy.
"Considering the encouraging response and the request from various land owners for extension of the
time limit for expressing willingness for participation under the policy, the date was extended to
September 6," the spokesperson said.
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/ddas-land-pooling-window-to-stay-open-till-september-6/70569318
Page 30 of 48
To encourage more land owners to come forward and register land under the policy, DDA also plans
to develop two 'model sectors' from the land that has been pooled till now. These sectors would
showcase the development that DDA envisages under the policy and the authority believes these
model sectors would encourage land owners "who are sitting on the fence right now to come forward
and aggregate their land".
"As soon as we are able to develop even one model sector as per our vision, it will act as a pilot
project and showcase the benefits of the land pooling policy. We are confident that once the model
sectors come up, land owners will flock to get their land pooled," the official said.
"We would develop roads, drainage, water pipelines etc. as soon as a sector is marked for
development. We are in talks with the Delhi Jal Board for the provision of water for these sectors," he
said. The unavailability of adequate water and other resources had forced DDA to decrease the
initially planned floor area ratio (FAR) of 400 to 200 for areas to be developed under land pooling.
The authority has also created a promotional video, which showcases the benefits of the policy. "The
basic concept behind our presentation is that of a person explaining the policy to farmers. We have
carried out many presentations in the last one month," the official said.
Once the land registration process is completed, the land parcels that have been registered for pooling
will be verified by the Delhi government. After the verification process, DDA will send notices to
land owners to form consortiums and following this, it will prepare sector plans showing land area
break up.
The extension of the portal is expected to ensure maximum participation and pooling in the identified
sectors so that planning and execution of infrastructure can be taken up in an integrated manner.
__________________________________________________________________
Page 31 of 48
Foreign reinsurers may be allowed to open satellite offices in GIFT city
At present, foreign reinsurers which already have branches in India have to apply for a fresh
licence in GIFT City, which enjoys taxation benefits and relaxed net owned fund or NOF norms.
The insurance regulator is considering a proposal that will allow foreign reinsurers to open satellite
offices in International Financial Services Centre (IFSC) in Gujarat International Finance Tec-
City(GIFT City), a move expected to facilitate on-shoring of international insurance transactions by
foreign reinsurers.
At present, foreign reinsurers which already have branches in India have to apply for a fresh licence in
GIFT City, which enjoys taxation benefits and relaxed net owned fund or NOF norms.
―A meeting was held last Friday between representatives of GIFT City, reinsurers and officials of the
Insurance Regulatory and Development Authority of India (IRDAI), where the regulator said that it
would consider the proposal,‖ an official aware of the matter told ET on condition of anonymity.
An email sent to IRDAI did not elicit any response till press time.
There are 10 foreign reinsurers which have already set up branches in India.
Reinsurers have argued that taking a fresh licence is cumbersome and against the very principle of
ease of doing business in India, said the official.
―IRDAI has some concerns over regulatory issues such as solvency norms which they will be
examining,‖ said the official.
An industry executive said that if allowed foreign reinsurers will be able to write offshore reinsurance
premiums otherwise generated in Asian reinsurance hubs such as Singapore and Malaysia.
Experts said that since foreign reinsurers will continue to pay 40% tax on their Indian business profits,
they will focus on bringing regional business into India because as per the current norms in IFSC,
GIFT City only the minimum alternate tax of around 9% is payable.
In the budget for 2019-20, the government announced that it would reduce NOF requirement of
reinsurers to ₹1,000 crore from ₹5,000 crore.
―It would make imminent business sense for foreign reinsurers to lap up this opportunity,‖ said
Satyendra Shrivastava, partner Khaitan Legal Associates. ―Such units could book regional business
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/foreign-reinsurers-may-be-allowed-to-open-satellite-offices-in-gift-city/70568396
Page 32 of 48
from neighbouring countries in South Asia and beyond from GIFT City IFSC and avail tax advantages
for the same.‖
___________________________________________________________________
Page 33 of 48
Over 4,200 applications received through portal for land pooling: DDA
The policy, notified by DDA in September last year, is aimed at allowing the city to get 17 lakh
housing units capable of accommodating 76 lakh people.
Over 4,200 applications for nearly 4,452 ha of land have been received by DDA through its
registration portal for its land pooling policy, officials said on Tuesday. The Delhi Development
Authority had launched the online portal in February to ease application and verification processes for
stakeholders of the land pooling policy.
The policy, notified by DDA in September last year, is aimed at allowing the city to get 17 lakh
housing units capable of accommodating 76 lakh people.
It covers urbanizable areas of urban extensions at 95 villages in the national capital.
"As on August 5, a total 4,281 number of applications amounting to nearly 4,452 hectares of land has
been registered under the portal," a senior official said.
The land poling policy is based on public private partnership towards pro-actively increasing
economic opportunities and housing supply in a time-bound manner and harnessing private potential
through pooling of land parcels.
Under the policy, agencies will develop infrastructure like roads, schools, hospitals, community
centres and stadia on the pooled land and return a portion of the plot to farmers who can later execute
housing projects with the help of private builders.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/over-4200-applications-received-through-portal-for-land-pooling-dda/70562493
Page 34 of 48
Maharashtra government to tighten building rules around Pune's
Indrayani riverbed
The structures came up over the years on the banks of Indrayani, which originates from
Kurvande village near Lonavla and flows downstream to the pilgrim centres of Dehu and
Alandi.
The state urban development department has initiated the process of incorporating blue and red flood
lines along the Indrayani river in the Regional Plan for the district.
Non-incorporation of the flood lines in the Regional Plan (RP) is seen as a source of ambiguity over
the legality of constructions and structures in the Indrayani riverbed, particularly near Lonavla, which
have often led to the flooding of surrounding areas during monsoon showers.
The structures came up over the years on the banks of Indrayani, which originates from Kurvande
village near Lonavla and flows downstream to the pilgrim centres of Dehu and Alandi.
On a commitment to the Bombay high court in a long-standing litigation over such
construction/encroachments, the urban development department on August 5 issued a notice inviting
suggestions and objections from public over a proposal to modify the RP for Pune district as well as
the Development Control and Promotion Regulations (DCPR) of 2018 for the Pune Metropolitan
Region Development Authority (PMRDA).
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-government-to-tighten-building-rules-around-punes-indrayani-riverbed/70570845
Page 35 of 48
Kishor Gokhale, the urban development department under-secretary, issued the public notice
mentioning the proposal under the provisions of Section 20 of the MaharashtraRegional Town
Planning (MRTP) Act, 1966.
The proposed modification prohibits any constructions in the area between the riverbank and the blue
flood line, barring exceptions such as open vegetable market, garden, lawns, cremation and burial
grounds, among others.
The notice further proposes, ―Redevelopment of the existing authorized properties within river bank
and blue flood line may be permitted if the plinth height of the building is not less than 0.45m above
the red flood line and after obtaining an NOC from the irrigation department.‖
The notice states, ―Suggestions or objections from general public regarding the proposed
modifications in the RP and the DCPR be submitted to the assistant director of town planning, Pune
branch, at the new administrative building opposite Vidhan Bhavan, Pune, within 30 days from the
date of publication of the notice.
The assistant director is also appointed as the officer for hearing suggestions or objections.‖ The plans
showing the proposed modification shall be kept open for inspection by public during office hours on
Page 36 of 48
all working days at the offices of the PMRDA metropolitan commissioner and the assistant director of
town planning, it added.
Sadashiv Sapre, one of the petitioners in the high court litigation, told TOI: ―The state‘s move is a
progressive step as notifying the flood lines is not only critical to addressing the issue of
constructions/encroachments in the Indrayani riverbed, but also to the rivers across Pune and other
parts of the state.
After the incorporation of the flood lines in the RP, it would be much convenient for the authorities to
remove or control such constructions or encroachments.‖
____________________________________________________________________
Page 37 of 48
Over 3,000 allottees give up 1 BHK DDA flats in Narela
In about a fortnight since DDA held the draw of lots for housing scheme 2019, more than 35%
of the flats, all of which are one-bedroom ones, have been surrendered by the allottees.
Delhi Development Authority (DDA) is finding it difficult to find takers for its flats in Narela, even
after offering them multiple times.
In about a fortnight since DDA held the draw of lots for housing scheme 2019, more than 35% of the
flats, all of which are one-bedroom ones, have been surrendered by the allottees.
In the draw of lots for the housing scheme held on July 23, total 8,438 flats were allotted but till
August 6, 3,017 applicants have surrendered their flats. This is not the first housing scheme in which
flats allotted in north Delhi's Narela have been surrendered by the allottees.
Under the 2017 housing scheme, 4,711 allottees had surrendered the flats, mostly in Narela, within a
fortnight of the draw of lots.
The authority's latest housing scheme had received a very lukewarm response to begin with. While
there were nearly 18,000 flats on offer under the scheme, in the draw of lots only 8,438 flats were
allotted.
The housing scheme, with 17,922 flats on offer, was launched on March 25 and remained open till
June 10. The authority received 45,012 applications, but majority of these were for the 1,286 three-
bedroom, two-bedroom and one-bedroom flats in Vasant Kunj.
Even as majority of the flats were in Narela, only 5,000 applications were received for these,
including two-bedroom ones. While 7,700 flats were offered for economically weaker sections, only
1,500 applications had come for these flats.
"There are not many takers for flats in Narela due to its location. It is far away from the heart of the
city and also there is an acute shortage of public transport," a DDA official said.
"In earlier housing schemes, many allottees had complained about the small size of flats. That is why
we didn't include any flats from the old inventory in the scheme. The new flats are spacious but still
the response was not good," he said.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/over-3000-allottees-give-up-1-bhk-dda-flats-in-narela/70569411
Page 38 of 48
Tamil Nadu Slum Clearance Board's flats up for sale, rent in
Coimbatore
As the building is constructed by the government, all the basic amenities such as potable water,
sanitation and security are ensured.
―Are you here to purchase a flat or check out one for rent or lease?‖ would be the first question to
greet you if you are to walk into the Tamil Nadu Slum Clearance Board (TNSCB)‘s housing unit
at Ukkadam.
If the answer is ―yes‖, residents would swarm you like flies within no time. They are so desperate to
either rent out their flats or sell them out.
A resident, who didn‘t want to be named, told TOI the benefits of buying a flat in the housing unit
were aplenty. ―It is in the city centre. Right from market to bus stand, everything is at walkable
distance.
As the building is constructed by the government, all the basic amenities such as potable water,
sanitation and security are ensured. Rather than spending thousands of rupees outside for much lesser
facilities, it is better to get one in the housing unit. A flat will be more than enough for a family of
four.‖
There are four floors – ground plus three – in each block and each flat is 275 sq ft big. Flats on the
ground floor are available for rent at Rs 3,000 and an advance of Rs 30,000. As the floor rises, rent
comes down by Rs 500 and advance drops by Rs 5,000. For leasing out the flats, an agreement for 11
months is signed.
Flats on the ground floor are leased out for Rs 2.5 lakh and the price comes down by Rs 50,000 as the
floor rises.
The housing unit was built by TNSCB to accommodate the people, who were evicted from the public
land that they had encroached upon. The object of allotment itself is defeated, if the flats are sold or
rented out to others.
According to the terms and conditions in the allotment orders, the beneficiaries are not allowed to sell
or rent out their flats. There are also provisions to cancel the allotment, if the beneficiaries are found
to be violating the terms.
Another resident said about one-fourth of the housing unit was either rented out or leased out and
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/tamil-nadu-slum-clearance-boards-flats-up-for-sale-rent-in-coimbatore/70571376
Page 39 of 48
many more were available. Pointing out that the flats were rented out for students as well, the resident
said, ―The flats are available only for girls and families. Accommodating bachelors would welcome
unwanted troubles. A few bachelors are staying in a flat and we would evict them as soon as the
welfare association is formed. Families are not comfortable with them around.‖
A third resident, who also requested anonymity, said the flats were also available for sale and the cost
ranged between Rs 5 lakh and Rs 6 lakh. ―But it is advisable to wait for at least six months to
purchase a flat here. We all have just moved in and haven‘t completed the verification process, which
is mandatory to get the ownership documents. Officials would drop in anytime for verification and it
might lead to unwanted troubles.‖
He said he had two flats in the housing unit as TNSCB had demolished two of his houses, which were
constructed along waterbodies. He owns a house with three bedrooms in the city. There are several
people like him, who had got flats in the housing unit.
The housing unit with 1,840 flats in 20 blocks had remained vacant for almost a decade after a couple
of blocks sunk into the ground in 2009. It‘s only a few months ago that TNSCB allotted the flats as
alternative accommodation for encroachers evicted from waterbodies. The flats were given to them
free of cost after the city corporation took care of the costs – Rs 36,000 per flat.
When contacted, A L C Kumar, executive engineer of TNSCB, said, ―We have given specific
instructions that the flats should not be sold or rented out. If they violate the terms, we will cancel
their allotment order. As we have collected details like biometric and Aadhar card number of the
beneficiaries, verification could be done at any time. We have been receiving similar complaints and
have been creating awareness among the public.‖
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Page 40 of 48
Agra development body not to approve building plans without
rainwater harvesting system
However, colonies developed by ADA also do not have the required set-up for rainwater
harvesting.
Agra Development Authority(ADA) has decided not to approve maps of houses that do not have a
provision for rainwater harvesting. Besides, notices are being issued to owners of large premises for
installation of rainwater harvesting system.
However, colonies developed by ADA also do not have the required set-up for rainwater harvesting.
For instance, both Shastripuram colony and Tajganj, developed by ADA, lack facilities for harvesting
rainwater. Now, ADA officials have claimed that required arrangements will be made soon.
ADA chief engineer AK Singh said, ―Rainwater harvesting systems are being installed in all
the residential projects of the ADA. The work will be completed soon. Notices have been issued to
owners of large premises not having rainwater harvesting system. They have been asked to make a
time-bound arrangement.‖
Officials claimed that only 251 buildings in the city have rainwater harvesting system installed in
them.
According to a state government directive, every building constructed in an area of 300 square metres
or more must be equipped with a water harvesting system. While the directive has been in force since
2008, few have bothered to implement it.
After the rules were tweaked in 2013-14, property owners were required to deposit a certain sum with
ADA as a guarantee for setting up rainwater harvesting system before seeking an approval for
house/building plan.
The amount of security money is Rs 50,000 for a 300 to 500 square metre plots, Rs 1 lakh for
properties covering over 500 sq metres and Rs 10 lakh for 1,000 sq metre or above land.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/agra-development-body-not-to-approve-building-plans-without-rainwater-harvesting-system/70571079
Page 41 of 48
Mysuru development body's sites up for auction at premium price
An official claimed that usually the base prices of sites are increased 20% beyond the
government guidance value. Since it is the only source of revenue for the urban body, it goes all
out to maximise the auctions.
Despite real estate facing slowdown, Mysuru Urban Development Authority (Muda) continues to
keep the prices of its premium sites — which it auctions — to get a better revenue.
In its latest auction (third in this year) of about 50 sites, the urban development body has escalated the
value of sites beyond the guidance value in Mysuru. Sites in Dattagalli III Stage and Dattagalli E&F
blocks and some in Bannimantap B Layout, Hebbal I and III stages and JP Nagar I Stage are up for
auction.
An official claimed that usually the base prices of sites are increased 20% beyond the government
guidance value. Since it is the only source of revenue for the urban body, it goes all out to maximise
the auctions. Sites not getting any customers are re-auctioned later. Muda will revise the price if the
sites do not get any buyers.
Muda secretary M K Savitha told TOI that going by the past experiences, almost 90% of sites put up
for sale will have buyers of in the very first auction. Muda will think of revising prices of only those
sites which fail to get minimum bidders or do not have buyers.
―But till now, Muda has not come across such a situation. There is demand for Muda sites because of
their authenticity. Obviously, our prices are based on guidance and market values in particular
localities,‖ she said, explaining the rationale behind keeping the price premium.
The base price of two corner sites in the latest auction was Rs 1.67 crore (for 445.5sqm) and Rs 1.35
crore (for 358.5sqm) in Dattagalli III Stage. This is Rs 25 lakh more than the guidance value. The base
price of four intermediate sites (of approx 60x40sqft) at Dattagalli E & F blocks is quoted Rs 89 lakh,
which otherwise is Rs 65 lakh.
―Rise in the prices of premiums sites owned by Muda would obviously escalate real estate in any
region,‖ said M D Adishsagar, realty expert recognised by Indian Institute of Real Estate. He,
however, suspects some organised racket being active even in online auction of sites. ―This must be
checked to stop misuse of sites,‖ he added.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/mysuru-development-bodys-sites-up-for-auction-at-premium-price/70568614
Page 42 of 48
State Bank of India cuts lending rates by 15 bps
SBI's one-year marginal cost of fund-based lending rate, or the MCLR, will come down to
8.25% per annum from 8.40% earlier with effect from Aug. 10, SBI said in a statement.
State Bank of India(SBI), the country's largest lender by assets, on Wednesday cut its benchmark
lending rates by 15 basis points across all tenors, shortly after the central bank slashed interest rates by
a larger-than-expected 35 bps to boost the economy.
SBI's one-year marginal cost of fund-based lending rate, or the MCLR, will come down to 8.25% per
annum from 8.40% earlier with effect from Aug. 10, SBI said in a statement.
The Reserve Bank of India (RBI) cut interest rates for a fourth straight meeting in 2019, taking
advantage of mild inflation to expand its effort to boost an economy growing at its slowest pace in
nearly five years, but there have been concerns over speedy transmission of these cuts to the economy.
"SBI has effected full transmission of repo rate cuts by RBI and has passed on the benefit of repo rate
reduction by 85 bps during the current financial year to its CC/OD (cash credit and overdraft)
customers with limits above 100,000 rupees," SBI said.
The lender added that after its fourth cut in MCLR for the year, home loans had become cheaper by
35 bps since April 10.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/state-bank-of-india-cuts-lending-rates-by-15-bps/70570338
Page 43 of 48
India Cements reports net profit of Rs 64 crore in Q1 FY20
The company's net income stood at Rs 1,503.61 crore in the said quarter, a growth of from Rs
1,393.76 crore it registered in the similar quarter last year.
India Cements reported net profit of Rs 64.27 crore in the quarter ended June 2019. Its profit after tax
was Rs 2.65 crore in Q1 FY19.
The company's net income stood at Rs 1,503.61 crore in the said quarter, a growth of from Rs
1,393.76 crore it registered in the similar quarter last year.
The cement prices which started improving from the month of February'19 stabilised at reasonable
levels during the next three months and has witnessed some aberration which is likely to get corrected
post monsoon, the company said in a media release.
"The capacity utilisation of the company during the quarter was 77%. With the improved selling price
of cement, the net plant realisation went up by 11% during the quarter over that of previous year," the
company said.
It had also taken pro-active steps to contain the cost of production and the variable cost has come
down by nearly 4% on a sequential quarter basis and was only marginally up when compared to the
same quarter of the previous year.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/india-cements-reports-net-profit-of-rs-64-crore-in-q1-fy20/70574167
Page 44 of 48
Katerra to invest over $100 million to construct manufacturing plant in
Hyderabad
"With this, we plan to double our capacity from the current 10 million sq ft to 20 million sq ft,"
said Ash Bhardwaj, President Asia and Middle East of the company.
Katerra, a construction company, plans to invest over $100 million to construct a manufacturing plant
in Hyderabad, said Ash Bhardwaj, President Asia and Middle East of the company.
"With this, we plan to double our capacity from the current 10 million sq ft to 20 million sq ft," said
Bhardwaj. It will deliver 8 million sq ft of building components every year through robotic assembly
line production.
The factory which is spread over 50 acres is expected to be complete by March 2020. This will be
company‘s second factory in India after Krishnagiri in Tamil Nadu.
In next three years, Katerra plans to expand into National Capital Region (NCR) and Mumbai region
as well. "We have plans to set-up factories in the Mumbai-Pune region in the later part of the year,
followed by a plant in NCR to cover the north market,‖ said Bhardwaj.
In the long run, it also plans to have 15-20 smaller spokes to cover the rest of the country.
The company will also set-up vocational training centre in Hyderabad to upskill the workforce and
will focus on providing them technical training.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/katerra-to-invest-over-100-million-to-construct-manufacturing-plant-in-hyderabad/70571080
Page 45 of 48
Home sales in Toronto jump 24.3% in July 2019
Total home sales climbed 24.3% from a year earlier, while listings only rose by 3.7%.
Growth in Toronto-area home sales outpaced an increase in new listings in July, as potential buyers
adjusted to stricter mortgage rules that came into effect in 2018, the Toronto Real Estate Board said in
a release on Tuesday.
Total home sales climbed 24.3% from a year earlier, while listings only rose by 3.7%. The average
home price rose 3.2%. "We're seeing growing pent-up demand for ownership housing, especially as
the number of (Greater Toronto Area) households continues to increase by 40,000 to 50,000 each year
due to strong population growth," TREB Chief Executive John DiMichele said in the release.
This could lead to "a chronically under-supplied marketplace and an acceleration of home price
growth to unsustainable levels," he added.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/home-sales-in-toronto-jump-24-3-in-july-2019/70569041
Page 46 of 48
Affordable housing 'crisis' tests Saudi Arabia's reform drive
But Saudi Arabia is now pushing to boost mortgage lending in a contentious policy shift that is
squeezing the middle-class as it chips away at its cradle-to-grave welfare in an era of low oil
prices.
Saudi Arabia is building a futuristic megacity with promises of talking robots and flying taxis, but for
hundreds of thousands like academic Abdullah a simple dream remains elusive -- owning a home.
Housing is a potential lightning rod for public discontent in a country where affordable dwellings are
beyond the reach of many, posing a key challenge for Crown Prince Mohammed bin Salman as he
seeks to overhaul the oil-reliant economy.
For decades, the once tax-free petro-state dished out interest-free housing loans.
But Saudi Arabia is now pushing to boost mortgage lending in a contentious policy shift that is
squeezing the middle-class as it chips away at its cradle-to-grave welfare in an era of low oil prices.
For many like Abdullah, a 39-year-old father of three with a rented apartment in Riyadh, this has
delayed the dream of building his own home on the city's outskirts.
After more than a decade on a waiting list for an interest-free loan from the kingdom's Real Estate
Development Fund, Abdullah says it referred him to a commercial bank to take out a mortgage worth
445,000 riyals ($119,000).
He used the money to start building a house on a 350,000 riyals parcel of land for which he took a
separate bank loan, but construction had to be halted in May after he ran out of money.
Set up in 1974, the Fund is a government entity linked to the housing ministry, and covers about a
quarter of Abdullah's monthly mortgage payment.
But Abdullah says he is still left struggling to pay off both loans that eat up roughly half his monthly
income of 20,000 riyals ($5,300) amid rising living costs.
"The (mortgage) system is destroying the middle class, it is suffocating us," he told AFP outside his
half-finished home, urging a return to the interest-free loans.
- 'Dual tension' - The strain is felt more acutely by 41-year-old government employee Majid, who
earns only slightly more than the national average monthly income of 14,820 riyals ($3,950).
Newspaper/Online ET Realty (online)
Date August 07, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/affordable-housing-crisis-tests-saudi-arabias-reform-drive/70572313
Page 47 of 48
Such lower middle-class citizens are already struggling as the government scales back subsidies,
hiking water, electricity and gasoline prices and imposing a five percent value-added tax.
He is among some 500,000 people said to remain on the Fund's waiting list for interest-free loans,
with a final decision expected by 2020.
The Fund and the housing ministry did not respond to AFP's requests for an interview.
"The key to addressing the Saudi housing crisis is... to stimulate private sector funding and cut the
longstanding reliance on government subsidies," Saudi expert Najah al-Otaibi told AFP.
But this is all a shock to many Saudis accustomed for decades to cheap loans and a tax-free lifestyle.
It highlights the petro-state's challenge in weaning citizens off government largesse amid a huge fiscal
deficit, projected to reach $35 billion in 2019, or 4.2 percent of GDP.
"In Saudi Arabia, now there is a dual tension -- first is to provide affordable housing for the younger
generation feeling the pinch of higher costs of living, reduced subsidies, and less jobs," Karen Young,
from the American Enterprise Institute, told AFP.
"Second is to broaden financial services to expand credit products, and hope to spur consumer growth.
The latter has more chances of broader economic growth than returning to free government housing
practices."
The world's top oil exporter says it is seeking to partner with the private sector to stump up billions of
dollars to build around 1.5 million affordable homes in the coming years.
- 'Makes me angry' - Boosting home ownership is one of the key cornerstones of Prince Mohammad's
Vision 2030 reform programme. Nearly half of the country's 20.7 million Saudis owned their own
home in 2017, with hopes of reaching 70 percent by 2030.
The kingdom also wants to reduce the cost of an average home by 2020 to five times the average
annual income, down from 10 times the yearly salary in 2015.
Saudi Arabia has only a single digit mortgage penetration, one of the lowest among G20 countries,
according to the Arab News daily.
The housing ministry, which has announced multiple housing schemes to alleviate the crisis, says it
seeks to increase total mortgages to 502 billion riyals ($134 billion) by 2020, up from 290 billion
riyals ($77 billion) in 2017.
But some Saudis are pushing back, voicing resentment over continued state spending on grand
projects like NEOM, a planned $500 billion mega city in the kingdom's northwest, while many cannot
afford homes.
"Where is the 250 billion riyals?" has been a recent refrain on social media.
Page 48 of 48
It refers to the $67 billion allocated to the housing ministry in 2011 by the then King Abdullah,
apparently to address popular discontent as Arab Spring protests swept the region.
For Majid, who waited for years for a loan from the Fund, the current scenario means he can only rent
a small place rather than purchasing a house.
"When my eight-year-old daughter has to change her clothes in front of her brothers, I feel ashamed I
don't have a bigger house of my own," Majid told AFP, requesting that his real name be withheld.
"It makes me angry."
___________________________________________________________________