21-august-2019 - credai bengalcredaibengal.in/wp-content/uploads/2019/08/21aug19-cb-daily-new… ·...
TRANSCRIPT
21-August-2019
Page 2 of 30
CREDAI Bengal Daily News Update | 21.08.19
Income Tax department raids Oberoi Realty and Capacit'e
Infraprojects
Sources said searches were carried out at over 30 locations in Mumbai, Delhi and Hyderabad by
I-T sleuths.
The Income Tax (I-T) Department on Tuesday carried out searches at Oberoi Realty group and its
biggest vendor Capacit‟e Infraprojects for suspicious transactions, including alleged purchase from
dubious entities, receipt of „on-money‟ and price manipulation and cash deposits during
demonetisation period, sources in the know of the development told ET.
Sources said searches were carried out at over 30 locations in Mumbai, Delhi and Hyderabad by I-T
sleuths.
“While Oberoi Realty is being probed for various tax evasions, the purpose of Tuesday raids were to
probe if there were any suspicious funds from group entities and related party transactions.
This includes related entities advancing funds in the form of loans, purchase of flats, payment for
goods and services,” said one of the persons cited above.
Oberoi, which has developed over 40 projects in Mumbai, is also being probed on allegations of
receipt of „on-money‟ and price manipulation.
“There is information that at least eight prime projects of the realtor in Mumbai and its suburbs in
which there is suspicion of difference between sale prices shown in books and those of registered
prices vis-a-vis payment received,” added the official.
Emails sent to Oberoi and Capacit‟e did not elicit a response.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/income-tax-department-raids-oberoi-realty-and-capacite-infraprojects/70763284
Page 3 of 30
NCLT admits Bank of India's insolvency plea against HDIL
The state-owned lender had approached the Mumbai bench of the National Company Law
Tribunal (NCLT) against the realtor after it failed to repay dues of around Rs 522 crore.
A dedicated bankruptcy court has admitted an insolvency plea against listed realty developer Housing
Development & Infrastructure (HDIL) after Bank of India sought recovery of its dues under
provisions of the time-bound resolution program.
The state-owned lender had approached the Mumbai bench of the National Company Law
Tribunal(NCLT) against the realtor after it failed to repay dues of around Rs 522 crore.
On Tuesday, NCLT admitted the insolvency resolution plea against Mumbai-based HDIL in an oral
order.
"The petition filed by Bank of India is admitted," said the tribunal. The committee is made up of
judicial member Bhaskara Pantula Mohan and technical V Nallasenapathy.
Besides Bank of India, the builder also faces resolution pleas by Corporation Bank, Syndicate Bank,
Indian Bank, and Dena Bank.
Last year, HDIL had settled two similar bankruptcy petitions by Jammu & Kashmir Bank and Andhra
Bank, paying the lenders Rs 334 crore and Rs 40 crore, respectively.
"We are waiting for the copy of the order and then we have decided to take appropriate legal action
and remedies available to us," said Subir Kumar, an advocate representing HDIL.
Nishit Dhruva, managing partner of law firm MDP & Partners that is advising the lender, confirmed
the development but declined to discuss details.
ET's mailed query to HDIL's vice chairman and managing director Sarang Wadhawan remained
unanswered.
"This is to inform that Housing Development and Infrastructure Limited has been admitted under the
provisions of the IBC," the company said in its exchange announcement. "The company is under the
process to file an appeal to the National Company Law Appellate Tribunal (NCLAT) against the order
passed by the National Company Law Tribunal."
HDIL, engaged in slum rehabilitation projects in Mumbai, has total debt of Rs 1,989.77 crore. In its
recently held investor conference call, HDIL announced that it has reduced a part of its debt and will
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/nclt-admits-bank-of-indias-insolvency-plea-against-hdil/70763176
Page 4 of 30
focus on shedding loans further in the next three quarters.
Last quarter, HDIL had said it reduced debt by about a fifth as both consolidated and standalone
entities, in line with its guidance.
HDIL reported a 67% on-year decline in nprofit in the quarter ended June 30, at Rs 8.24 crore. Total
income was Rs 96.50 crore, declining 44% from a year ago.
__________________________________________________________________
Page 5 of 30
Noida authority begins verification of Amrapali Sapphire buyers
Once the buyers submit the affidavits, the Noida Authority will authenticate the ownership of all
flats and weed out ambiguity by verifying paperwork of dues paid and original ownership
papers.
The Supreme Court-appointed receiver met the buyers of Amrapali Sapphire I late on Monday
evening and asked them to file affidavits along with documentary proofs so as to facilitate the Noida
Authority authenticate the ownership of all flats and expedite the process of tripartite registration.
This was the first meeting held between the Sapphire buyers and court receiver R Venkatramani in
compliance with the July 23 orders of the Supreme Court that had directed the Noida and Greater
Noidaauthorities to immediately start registration of flats of homebuyers after cancelling the land
lease between the developer and the authorities.
Once the buyers submit the affidavits, the Noida Authority will authenticate the ownership of all flats
and weed out ambiguity by verifying paperwork of dues paid and original ownership papers.
Subsequently, the tripartite registry is to be signed between the Authority, the court receiver (now
officiating as builder) and the homebuyers.
The apartment owners association of Amrapali Sapphire I, who met the court receiver, said that “some
400 buyers have already submitted affidavits to their legal counsel”.
“The affidavits are with our lawyer, ML Lahoty, which will be forwarded to the court receiver. These
are the families which are currently staying in Amrapali Sapphire I. There are 1,033 flats, and the
remaining buyers will also submit their affidavits over the next few days,” said Ravi Kant, an
association member who was part of the meeting.Buyers said the court receiver has created a tentative
line-up for the execution of the registration.
According to the buyers, the verification of the owners will start by Wednesday. Noida officials will
set up a camp on Sapphire premises for verification. The court receiver will appoint a signatory to
sign the tripartite agreement. And pending work would be assessed and completed simultaneously by
the state-run NBCC.
“The concern for verification of ownership is to check that the buyers have settled all dues with the
builder and the property registration is being taken by the genuine buyer. For any ambiguity or
clarification regarding a buyers‟ transaction, forensic reports will be consulted,” Kant added.Of its
42,000 sold flats, there are about 14,000 buyers who are in possession of their homes in multiple
Amrapali projects.
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/noida-authority-begins-verification-of-amrapali-sapphire-buyers/70763157
Page 6 of 30
The apartments where residents are already living are Sapphire phases I and II, Silicon City, Eden
Park, Zodiac, and Platinum.
___________________________________________________________________
Page 7 of 30
FIR against Noida's ET Infrastructure for forging Allahabad HC's
order
Sushant Agrawal, director of ET Infrastructure, owed the amount to the Noida Authority in
connection with Plot C1 in Sector 16, which houses the palatial World Trade Tower, they said.
A builder here, who allegedly tried to avoid paying dues of Rs 26.80 crore his firm owed to the Noida
Authority by forging an Allahabad High Court order, has been booked for fraud and forgery, officials
said on Tuesday.
Sushant Agrawal, director of ET Infrastructure, owed the amount to the Noida Authority in
connection with Plot C1 in Sector 16, which houses the palatial World Trade Tower, they said.
"Agrawal came to the Authority office on July 20 and met officials claiming he has an order from the
Allahabad High Court which states that his dues of Rs 26.80 crore not be taken. He said the court has
passed the order on March 14," a Noida Authority spokesperson said.
"However, when our officials from the Commerce Department probed the matter it turned out that the
Allahabad High Court had not passed any such order on March 14," the spokesperson said.
"It further emerged that Agrawal had tampered with another order of the court which was passed on
February 28 and he had presented that forged order to the Authority," he said.
A complaint was lodged by an authority official at the Sector 20 police station against Agrawal on
Monday, the spokesperson said. Agrawal has been booked under Indian Penal Code sections 420
(fraud), and 467, 468, 417 (all related to forgery of documents), according to the FIR.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/fir-against-noidas-et-infrastructure-for-forging-allahabad-hcs-order/70763198
Page 8 of 30
DHFL lenders may be forced to convert their debt into equity: Union
Bank
DHFL owes over Rs 45,000 to banks, and the rest to other financiers including mutual funds,
pension funds and insurers, which are not regulated by RBI.
Resolving the crippled mortgage lender DHFL's over Rs 90,000 crore debt is "not so easy" and banks
are considering converting their outstanding into equity, Union Bank of India said Tuesday.
Rajkiran Rai, the managing director and chief executive for the state-run UBI, which is the lead-lender
to the crippled housing financier, Tuesday clarified that if the banks take equity stake in the company,
it will be for a short -term, which is till they get a suitor.
DHFL owes over Rs 45,000 to banks, and the rest to other financiers including mutual funds, pension
funds and insurers, which are not regulated by RBI.
"It's not a normal resolution process. It's a financial company. Here the creditors are banks, insurance
companies, pension funds and mutual funds. It is not so easy. In normal resolution, its banks and
NBFCs, so this is new to us also," Rai told reporters on the sidelines of the annual banking industry
event Fibac.
DHFL has become the poster-boy of the NBFC crisis that afflicted the financial sector after the infra-
lender IL&FS went belly up last September.
Rai said converting debt into equity is "one of the ideas" on the table as lenders seek to wriggle out a
solution.
"Even if banks acquire equity, it will be for a very short-term. But it will become a long-term pain if
banks fail to get a good investor and we are not ruling that eventuality as well," Rai said.
However, he did not offer specific comments on questions surrounding how other lenders to DHFL
like the debenture trustees and pension funds will be a part of the inter-creditor agreement, which is
essential before any resolution begins under the new RBI norms.
"So many regulators are involved in this. There is RBI, then there is Irdai and also Sebi It is not so
easy. But for us banks, thankfully it's easy as our regulator allows it," Rai said.
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-lenders-may-be-forced-to-convert-their-debt-into-equity-union-bank/70763114
Page 9 of 30
It can be noted that earlier this month, governor Shktikanta Das had said on August 7 that the RBI was
in touch with capital markets regulator Sebi, and insurance watchdog Irdai to allow MFs and insurers
to become a part of the ICA.
Meanwhile, Arijit Basu, a managing director at SBI, which also has exposure to DHFL, said lenders
are "evaluating" resolution plan received from DHFL.
"We are bankers who have lent, there are others who have also lent like MF, insurers, pension funds.
All have to be brought on the same page if we have to have a resolution. Both the banks and the
regulators are looking at this issue very closely," Basu said.
When asked specifically if everybody is on board with the plan being discussed, Basu initially said
everyone is working "jointly to find a solution".
"...all the regulators have to come on board and give their approval. That is moving forward in a very
coordinated and systematic manner," Basu said.
____________________________________________________________________
Page 10 of 30
UP-RERA issues notice to Ghaziabad development body in housing
scheme case
The GDA, however, says the scheme doesn’t come under Rera’s purview.
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has issued a notice to the Ghaziabad
Development Authority (GDA) over its failure to appear before the regulator in a case related to the
Indirapuram housing scheme for the economically weaker section.
The GDA, however, says the scheme doesn‟t come under Rera‟s purview.
The case was filed at the Greater Noida bench of UP-Rera by 60-year-old Ghaziabad resident Raj
Prakash Tyagi, who has not yet got the possession of his EWS house that he was allotted 30 years ago
by the GDA. The Rera bench issued five notices to GDA between February and June this year, asking
its representative to appear before the regulator.
The bench has now threatened to pass ex-parte order on the basis of available documents and facts, in
case GDA officials do not appear on August 29 and clarify their stand, sources told TOI.
As per RERA rules, all development agencies and private builders are required to update their projects
so that they can be accessed easily by the buyers and the status of the projects are in the public
domain.
However, GDA chief engineer VN Singh said the EWS Indirapuram scheme was launched in 1990
and completed by 2001. “So, it does not come under Rera. The agency cannot expect the department
to register the project that was completed 18 years ago. We have already submitted this reply, but
despite that, the notice has been issued.”
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 21, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-issues-notice-to-ghaziabad-development-body-in-housing-scheme-case/70763231
Page 11 of 30
Altico Capital exits Phoenix Group's IT-SEZ project in Hyderabad
Phoenix is an existing development partner of Altico Capital as the NBFC has funded multiple
projects of the realty developer in the past and has been prepaid on several occasions.
Altico Capital, the non-banking finance company, backed by Clearwater Capital, Abu Dhabi
Investment Council and Varde Partners, has exited completely from realty developer Phoenix
Group‟s IT-SEZ project in Hyderabad‟s Hitec City. The developer has prepaid its Rs 250 crore loan it
had raised from Altico Capital.
Altico had sanctioned the facility in June last year for the land purchase and development of an IT
SEZ project forming extension of an existing 5 million sq ft project aVance Business Hub in Hitec
City, the commercial business district of Hyderabad.
Phoenix is an existing development partner of Altico Capital as the NBFC has funded multiple
projects of the realty developer in the past and has been prepaid on several occasions. “This
transaction, once again, underscores the robust underwriting and asset management standards we have
been following,” Sanjay Grewal, CEO of Altico Capital, told ET.
An official of Phoenix Group confirmed the repayment of loans ahead of schedule.
Hyderabad-based Phoenix Group has already entered into a forward sale agreement with Ascendas-
Singbridge for the sale of two buildings in the IT SEZ for Rs 1,400 crore following the completion
and leasing.
Ascendas-Singbridge has been recently acquired by CapitaLand in June 2019 in a Singapore $11
billion deal and with the acquisition the merged entity is now one of Asia's largest diversified real
estate groups with over S$123 billion of assets under management.
“For the full year 2018-19, like in each of the last several financial years, Altico‟s cash realisations far
exceeded its contractual cash flows. As against contractual cash flow totalling Rs 1,500 crore for the
full year 2018-19, we realised over Rs 3,000 crore on a loan book of around Rs 7,000 crore,” Grewal
said.
Over the past 10 months following the IL&FS issue, Altico has realised nearly Rs 2,500 crore of
which Rs 1,300 crore were prepayments. While the market for refinancing has been slow because of
the NBFC liquidity crisis, such prepayments came through multiple sources such as project cash
flows, property sales by borrowers, asset sell-downs and refinancing from several newer yield hunting
Foreign Portfolio Investors (FPIs), he said.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/altico-capital-exits-phoenix-groups-it-sez-project-in-hyderabad/70749617
Page 12 of 30
Altico has received these prepayments from multiple loans spread across various Tier-I cities,
including Casa Grande in Chennai, Marvel in Pune, Skylark in Bangalore, Signature Global and
Ramprastha in NCR, Manjeera in Hyderabad across project types including residential, commercial
and affordable housing. All these exits have been made with returns ranging in the mid to high teens.
Altico has reported net profit of Rs 75 crore on the back of revenues worth Rs 306 crore for the
quarter ended June.
“We will use any surplus liquidity generated to deploy in our Board approved diversification strategy
moving away from lending to only residential RE segment. Nearly 45% of Altico‟s loan portfolio is
compliant with RBI definition of Infrastructure lending comprising mainly of affordable housing,
IT/IT-SEZ and warehousing/logistics,” Grewal said.
Altico plans to lend further to infrastructure sectors including education, hospitality, healthcare etc.,
along with diversification into retail mortgage lending.
________________________________________________________________
Page 13 of 30
Housing for all target will be met two years in advance: Housing
Minister
Puri was speaking at the 15th National Convention organised by NAREDCO in New Delhi on
Tuesday.
The target of housing for all by 2022 will be met two years before deadline said Hardeep Singh Puri,
Minister of State (I/C) for Housing and Urban Affairs.
Puri was speaking at the 15th National Convention organised by NAREDCO in New Delhi on
Tuesday.
The government will also roll out 50 smart cities by December 2019, he added.
In relation to rental housing policy the minister said that the MoHUA has held consultations with the
states, during which some concerns have been expressed, but several positive suggestions too have
come up.
Puri further said that they are in the process of streamlining RERA procedures further. But by and
large, the regulator has come to be accepted by all stakeholders, he added.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/housing-for-all-target-will-be-met-two-years-in-advance-housing-minister/70753532
Page 14 of 30
Gyan SP Developers altered BMC chief’s notings to usurp Jogeshwari
plot
The probe report, which was submitted to an Andheri court on July 31, shows the land is owned
by a Goa businessman, Vijay Misquitta (59), and his mother, Philomena.
The 3.4-acre Jogeshwari plot, which was in the news last year after the civic chief's notings on the
land's file were tampered with, was usurped by a builder using forged papers, a police probe has
established.
The developer, Gyanprakash Shukla, tampered with the remarks (see graphic) to prevent court
litigation on the Rs 500-crore land. Shukla and a civic official were arrested for the tampering.
The probe report, which was submitted to an Andheri court on July 31, shows the land is owned by a
Goa businessman, Vijay Misquitta (59), and his mother, Philomena. Cops repeatedly asked Shukla to
submit property papers, but he failed to do so before the July 31 deadline.
According to the police, Shukla, a partner in Gyan SP Developers, and his four aides forged property
documents. These papers were also submitted to the BMC and the HC, which is a cognizable offence,
said inspector Dinkar Raut. The forged agreement is on a Rs 5 stamp paper and is neither notarised
nor signed.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/gyan-sp-developers-altered-bmc-chiefs-notings-to-usurp-jogeshwari-plot/70753276
Page 15 of 30
Vijay's lawyers-Sonappa Nandrankar and Behzad Irani-have submitted the police probe report as well
as the forged and original copies of the property documents to the BMC.
Vijay learnt about the forgery when he received a notice from a lawyer in February 2018 regarding
sale of the land without intimating his tenants.
Vijay said Shukla's father Kamalshankar in 1979, moved court to protect his tenancy rights.
"Kamalshankar admitted he was tenant of Gilbert Misquitta. After my father's death in 1987,
documents were forged to show that they purchased the plot in 1978," he said.
Gyanprakash didn't reply to TOI 's email while BMC chief Pravin Pardeshi said he has to check with
his office.
___________________________________________________________________
Page 16 of 30
Maharashtra to charge stamp duty of Rs 1,000 for redevelopment
agreement
The state government has decided to take this decision to speed up redevelopment of MHADA
colonies.
The tri-party agreement for redevelopment between Maharashtra Housing and Area Development
Authority (MHADA), developer and flat owners will attract the stamp duty of just Rs 1,000.
The state government has decided to take this decision to speed up redevelopment of MHADA
colonies.
Similar decision was also taken for BMC owned properties by the state government in June this year.
Currently stamp duty is charged as per market rates which can run into crores and often become bone
of contention between residents and developer on how to share this stamp duty.
The stamp duty for redevelopment of MHADA colony at Kala Chowkie Abhydaynagar was around
Rs 50 crore and due to dispute between developer and tenants on how to share it, registration of
agreement has been delayed by more than year.
There are 104 MHADA colonies across the city and it has around 2.25 lakh tenaments and most of
them were constructed between late 1960s to 1990s and many of them need urgent redevelopment as
they are dilapidated.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-to-charge-stamp-duty-of-rs-1000-for-redevelopment-agreement/70747003
Page 17 of 30
Ghaziabad: Consumer panel orders KDP Infrastructure to refund
buyers
In 2016, a group of 18 homebuyers had filed a petition in SCDRC, after the builder KDP
Infrastructure Pvt Ltd failed to give the possession of flats which was due on March 2012.
The woes of a group of homebuyers, who had bought flats in KDP Grand Savanna in Raj Nagar
Extension in 2012, are far from over despite two different orders issued from the State Consumer
Disputes Redressal Commission (SCDRC) and the National Consumer Disputes Redressal
Commission (NCDRC) to the builder to pay compensation to the homebuyers.
In 2016, a group of 18 homebuyers had filed a petition in SCDRC, after the builder KDP
Infrastructure Pvt Ltd failed to give the possession of flats which was due on March 2012.
Vinay Verma, one of the petitioners, said, “The allotment letters were also issued to us after we paid
95% of the basic sale price to the builders before the possession date. We kept pursuing the case and
in 2015 the builder promised to hand over the possession in July 2016, but it was not kept.
Consequently, we approached the SCDRC and filed a petition seeking compensation for the delay
besides immediate handover of the flats.”
In February 2018, the state commission directed the builder to hand over possession of flat to
respective allottee within three months.
However, the builder did not follow the court order, prompting the petitioners to once again approach
the commission. The case then went into the execution phase and on June 25, 2019, the court ordered
the Noida district magistrate to issue a recovery certificate to the builder.
In the meantime, the petitioners went to the NCDRC for enhancement in the compensation ordered by
the SCDRC and the commission awarded a relief of Rs 50,000 for each case for the mental
harassment, said Verma.
The petitioners said the RC was issued in July this year, but they are yet to get any response from the
builder.
Despite repeated attempts, the builder could not be contacted for a comment in the case.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad-consumer-panel-orders-kdp-infrastructure-to-refund-buyers/70747031
Page 18 of 30
Mumbai: Over 500 residents of BDD chawls receive notices
The notices, which were sent by assistant commissioner of police Shashikant Dhengle of ACB on
August 7, were received by the residents earlier last week.
Many residents of the BDD chawls fear that they won‟t be eligible to get a tenement under the
redevelopment of BDD chawls as more than 500 of them have received notices from the Anti-
Corruption Bureau (ACB) asking them to prove that the transfer of tenements in their names is
legitimate.
The notices, which were sent by assistant commissioner of police Shashikant Dhengle of ACB on
August 7, were received by the residents earlier last week.
The transfer of tenement is allowed only among blood relatives and that too after a no-objection
certificate (NOC) from all the heirs of the person in whose name rent receipt is issued by the public
works department (PWD), which is the owner of these chawls.
However, many people sold their tenancy rights to third parties allegedly in connivance with PWD
officials. Such transfers were also legitimised by transferring the rooms in the names of the persons
who bought tenancy rights.
After a question was raised in the state Assembly on the issue in 2016, Chief Minister Devendra
Fadnavis asked the ACB to probe the allegations.
Maharashtra Housing and Area Development Authority (MHADA), the nodal agency for the project,
had earlier announced that only those people whose names figured in the PWD‟s list before 1996
would be eligible for getting tenements under the redevelopment programme.
After several protests from residents against this condition, the PWD issued a circular on May 29,
2019, asking all residents who have got the tenements transferred in their name in an unauthorised
manner should pay Rs. 22,500 to the state government, and if failed to do so, they would not get
tenements under redevelopment project.
Speaking with Mirror, Surayya Barshinge, who lives in room number 64 in chawl 99 at Worli, “There
is no third-party transfer in our case. The room was in my mother‟s name which was transferred in my
name after my brother gave NOC. We fail to understand why the ACB is sending us the notices.”
Kalpana Mane, resident of Chawl no. 94 at Worli, said, “The room was in my paternal aunt‟s name,
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/mumbai-over-500-residents-of-bdd-chawls-receive-notices/70749797
Page 19 of 30
and as her only heir, it was transferred in my name after her death. What purpose does it serve to send
us the notice?”
Raju Waghmare, president of All BDD Chawl Tenant Association, said, “As per our information,
notices to around 500 tenants have been served by the ACB. There are around 3,000 more residents to
whom notices will be served by the ACB.”
NCP leader Makarand Tasgaonkar, a resident of BDD chawls on NM Joshi Marg, said on the one
hand, the state government has asked for compounding fee from tenants to get their tenements
regularised and on the other hand, the ACB is trying to prove them as criminals. “If the state
government really wants to go ahead with the project, it must withdraw the notices, otherwise we will
not allow even a single brick of the project to be laid.”
There are 206 BDD chawls, spread across 92 acres. Out of these 120 are in Worli, 32 in NM Joshi
Marg, 42 in Naigam and 12 in Sewri. The state government has initiated the process of redevelopment
for all chawls except those in Sewri, which are built on Mumbai Port Trust land.
Mirror‟s text messages to CM Fadnavis, who also holds the home portfolio, remained unanswered.
__________________________________________________________________
Page 20 of 30
SIT arrests builder for unathorised construction in Shahberi
Noida police chief Vaibhav Krishna said a number of cases was registered at Bisrakh police
station regarding illegal projects in Shahberi over the past few years.
Police have set up a special investigating team for probing cases related to unathorised developers
in Shahberi. The team has five members — two inspectors, two sub-inspectors and another heading
the squad.
Police said Pradeep Tiwari, who was earlier the SHO of Sector 24 police station, will head the SIT.
The team made its first arrest on Monday itself —a female developer, Meenakshi, was picked up from
Bisrakh area.
Noida police chief Vaibhav Krishna said a number of cases was registered at Bisrakh police station
regarding illegal projects in Shahberi over the past few years. “We have formed the SIT keeping in
mind the number of cases registered in connection with illegal projects,” said Krishna.
Asked about Noida police‟s investigation into Shahberi buildings, Mukul Tyagi, the spokesperson for
Shahberi Sangharsh Samiti, said: “The issue certainly needed special investigation, but the job is only
half done. The investigation that the SIT will do must be transparent and it should find the right
culprits, and not harass the common people who have already lost their life‟s savings by buying a
house here.”
GNIDA had filed a total 44 cases against 181 people over allegations of illegally developing colonies
and housing projects in Shahberi. So far, five Authority officials have been removed over allegations
of conspiring with these illegal developers.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sit-arrests-builder-for-unathorised-construction-in-shahberi/70752949
Page 21 of 30
Madras HC seeks periodical reports on Kodaikanal buildings
The court also directed the Dindigul district collector to publish a periodical report on the state
government’s website stating that no unauthorised buildings have been constructed, and on
pollution at Kodaikanal.
Stating that Kodaikanal has been witnessing systematic assault on its ecosystem due to indiscriminate
felling of trees and construction of buildings, the Madras high court has said that the hill station has
become a concrete jungle and before it becomes an eyesore, the situation has to be remedied.
The court also directed the Dindigul district collector to publish a periodical report on the state
government‟s website stating that no unauthorised buildings have been constructed, and on pollution
at Kodaikanal. It also directed to submit the same before it every six months and observed that public
can initiate contempt proceedings if the collector‟s report turns out to be incorrect.
On Monday, a division bench of justice N Kirubakaran and justice G R Swaminathan passed the order
on a petition filed by the secretary of Kodaikanal Hotel and Resort Owners Association, S Abdul Gani
Raja moved in 2018, seeking the secretary of housing and urban development department to modify
and approve the masterplan for Kodaikanal municipality.
Observing the need for periodical revision of masterplan, the judges cited, “Kodaikanal is not one
more piece of rural or urban land. It is a unique ecosystem by itself. The government has to plan for
the preservation of the unique natural heritage of Kodaikanal. Therefore, we cannot countenance the
contention that to meet the demands of urbanisation and the tourist industry, the masterplan will have
to be periodically modified and revised.”
“It is time to recognise and adopt the best practices followed by other nations. For instance, on
account of the intense movement of motor vehicles, there is a heavy emission of smoke vitiating the
air quality of Kodaikanal. If need be, the vehicles can be stopped at the foothills and tourists can be
taken in eco-friendly solar-based or electric public transport systems. The district administration will
have to come out with innovative measures and creative solutions,” observed the judges.
The judges further said that the solid waste generated by the inhabitants and the hotel industry cannot
be dumped in Kodaikanal. The cost of disposal and transportation will have to be borne only by the
waste generator. In other words, pollution of every kind will have to be put an end to.
The judges said that the authorities at the regulatory, supervisory and field level will have to ensure
that every norm laid down in the laws relating to planning and environment are scrupulously adhered
to and time has come to fix personal liability on the officials and make them accountable if there are
any violations in the norms.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/madras-hc-seeks-periodical-reports-on-kodaikanal-buildings/70750231
Page 22 of 30
_________________________________________________________________
Page 23 of 30
Patna civic body to hire private firms for property tax collection
As of now, around 2.9 lakh households pay property taxes but the actual number is much
higher. The firm will be given a target to collect property taxes to the tune of Rs 120 crore in the
first fiscal.
Patna Municipal Corporation(PMC) will soon hire two private firms for collection of property taxes.
Executives of the firm will make survey for inclusion of households, which have not come under the
ambit of property tax, within three months.
As of now, around 2.9 lakh households pay property taxes but the actual number is much higher. The
firm will be given a target to collect property taxes to the tune of Rs 120 crore in the first fiscal.
PMC additional municipal commissioner Devendra Prasad Tiwari said only 60% residents pay
property tax in the city. “As per the data collected from different sources, there are around 5 lakh
households in the city. However, only 2.9 lakh people paid their taxes in 2018-19,” he said.
Sources in PMC said the new drive would increase the holding tax coverage by giving people more
avenues to pay tax according to their choice. The hired agency may adopt various methods for
collecting taxes, such as door-to-door visit, online payment and payment through post offices and
banks.
The property tax collection of PMC in 2018-19 fiscal stood at around Rs 80 crore. “We have set a
target of collecting Rs 120 crore as property tax in the 2019-20 fiscal. In a bid to achieve the target,
the civic body will rope in two private agencies to conduct survey of each and every household in all
six circles. The agencies will also collect the taxes from residents,” Tiwari said.
He added, “The agency will also ensure that digital collection is made from at least 50% taxpayers. If
the agency fails to achieve the target in any specific month, it will be asked to cover the shortfall in
the following month.”
To motivate digital payment through „City of Patna‟ mobile application or www.pmc.bihar.gov.in, the
agency will provide 2% discount to the taxpayers in the form of cash back.
The agency will also organise workshops for PMC staff and impart training to them to get tech-savvy.
Apart from property taxes, the agency will also collect trade licence fee, advertisement taxes, rental
income from municipal properties and licence renewal fee.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/patna-civic-body-to-hire-private-firms-for-property-tax-collection/70749930
Page 24 of 30
Kerala HC seeks Kochi civic bodies' views on illegal encroachment
According to the petition, Chilavannoor ‘lake’ is included under CRZ-I as it is ecologically
sensitive but several illegal encroachments have been carried out by ‘real estate land mafia
groups’.
The Kerala high court on Monday sought the views of the Kochi Corporation and Kerala Coastal
Zone Management Authority (KCZMA) on a public interest litigation (PIL) to stop encroachment of
Chilavannoor backwaters by „land mafia‟.
According to the petition, Chilavannoor „lake‟ is included under CRZ-I as it is ecologically sensitive
but several illegal encroachments have been carried out by „real estate land mafia groups‟.
Several complaints were filed to officials but no steps have been taken to stop the illegal
encroachments, the petitioner has alleged.
Regarding the specific area mentioned in the petition, the PIL said, “Several illegal encroachments in
Elamkulam Village are carried out by land mafia and it is still operational. Real estate land mafia
groups are dumping waste materials and filling this area violating the Kerala Coastal Regulation Zone
(CRZ) norms, so as to enable the illegal construction and to eliminate the puzha puramboke.”
The petitioner has further alleged that the Kochi corporation is dumping waste materials in a part of
the land included and filling the puzha puramboke so as to occupy the area.
The high court has directed for posting the petition along with connected cases for hearing.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/kerala-hc-seeks-kochi-civic-bodies-views-on-illegal-encroachment/70751716
Page 25 of 30
No construction till flood lines are fixed: Kolhapur civic body chief
As per rule, construction and re-development is restricted inside the flood-line of the rivers.
Civic chief Mallinath Kalshetti has directed the town planning department against issuing any
building permission until the flood lines are fixed by the water resources department (WRD).
As per rule, construction and re-development is restricted inside the flood-line of the rivers. Couple of
months ago, city-based developers met chief minister Devendra Fadnavisand objected to the flood-
line marked by the Kolhapur Municipal Corporation (KMC).
The recent floods covered more area than the deluge that occurred in the year 2005. And the illegal
construction activities in the flood zone of the river are being considered as one of the reasons for
aggravating the flood.
“As per directions of the state government, the WRD is finalizing the red and blue lines of
Panchaganga river. The references of floods in 1989 and 2005 are being taken. The recent flood has
also taken into consideration to mark the new flood lines. We are expecting the work to be completed
early and the final decision is taken by the state government. No new construction or the building
permission will be allowed till the flood lines are fixed. For those buildings that have already got
permission, construction cannot be started,” Kalshetti said.
Several developers claimed that the flood lines proposed by the WRD would halt development in the
city. After 2005 floods, the KMC, through a resolution, had decided to impose certain restrictions over
buildings in the blue line area of the river. However, activists criticized the civic administration for
not monitoring the construction activities in the blue-line area.
According to officials of the WRD, flood lines of the river will be finalized before September and the
urban development department has been directed to adopt modern techniques in combination with the
ground survey to fix the flood lines.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/no-construction-till-flood-lines-are-fixed-kolhapur-civic-body-chief/70750348
Page 26 of 30
Damaged houses to be rebuilt under PMAY: Maharashtra CM
Besides, he said the loans on flood affected crops up to one hectare shall be waived or would be
borne by the state government.
Maharashtra Chief Minister Devendra Fadnavis on Monday announced that over 19,000 homes
damaged or destroyed due to the recent floods in the state will be rebuilt under the Prime Minister
Awas Yojana (PMAY).
“We shall also provide financial assistance of Rs 24,000 for rented accommodation to people in rural
areas and Rs 36,000 in urban centres to live till their new homes under PMAY are ready,” Fadnavis
told mediapersons here.
Besides, he said the loans on flood affected crops up to one hectare shall be waived or would be borne
by the state government.
For those farmers who have not availed of any loans, the government will give them triple the normal
compensation for the crop losses suffered by them, Fadnavis said.
People who have lost all their documents shall be provided free of cost the required duplicate papers
by the government.
The state cabinet last week had decided to seek financial help of Rs 6,813 crore from the centre for the
flood-ravaged districts of Sangli, Satara, Kolhapur, Nashik, Konkan and other affected areas, where
54 people have died so far.
As per official figures from the Konkan Divisional Commissioner, nearly 4.75 lakh people have been
rescued from the floods and housed in 596 temporary camps in the past few days.
Earlier on Monday, Fadnavis expressed gratitude to Reliance Industries Ltd scion Anant Ambani and
Bollywood megastar Amitabh Bachchan for their generous donations of Rs 5 crore and Rs 51 lakh
respectively, to the CM Relief Fund for the flood-hit people in the state.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/damaged-houses-to-be-rebuilt-under-pmay-maharashtra-cm/70749726
Page 27 of 30
New Delhi world's 10th fastest growing prime residential market:
Report
The index tracks the movement in luxury residential prices across 46 cities globally.
New Delhi has emerged as the 10th fastest growing prime market in the world with an annual capital
value growth of 4.4% in the second quarter of 2019. However, the property market has slipped three
places in the overall ranking during the quarter from 7th position in the first quarter, showed Knight
Frank‟s Prime Global Cities Index.
Other key Indian cities Bengaluru with 2.8% rise and Mumbai with 0.8% appreciation were ranked
15th and 30th on the list, respectively, showed Knight Frank‟s Prime Global Cities Index.
The index tracks the movement in luxury residential prices across 46 cities globally. The index
highlights that luxury residential prices across these markets have registered an average increase 1.4%
in the year to June 2019 period.
New Delhi, by virtue of limited supply of luxury properties saw a rise in weighted average of capital
values which were recorded at Rs 33,511 per sq ft recording an annual rise of 4.4%. New Delhi has
slipped three places in the overall ranking during the quarter from 7th position in the first quarter to
10th position.
“The marginal increase in prices, along with poor buyer sentiment suggests that demand for luxury
homes is likely to remain tepid…Back home, the Indian residential market continues to focus on
affordable and mid-segments due to structural reforms supporting this segment. However, a growth in
the prime property markets in Mumbai and Bengaluru could be viewed as a sign of stabilisation,”
said Shishir Baijal, Chairman & Managing Director, Knight Frank India
Bengaluru that featured at the 15th rank of the Prime Global Cities Index as compared to 20th rank in
the first quarter of 2019. Bengaluru recorded a weighted average capital value of prime markets at
approximately Rs 19,000 per sq. ft. recording an annual increase of 2.8%. Mumbai featured at the
30th rank with a mere 0.8% 12-monthly change, recording a weighted average capital value for prime
properties at Rs 64,764 per sq. ft.
Berlin continued to lead the index. However, its rate of annual growth has slowed from 14.1% in
March 2019 to 12.7% in June 2019. Frankfurt, by comparison, has seen its annual price growth
increase from 9.6% to 12.0% over the same period and managed to secure second rank replacing
Moscow.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/new-delhi-worlds-10th-fastest-growing-prime-residential-market-report/70753645
Page 28 of 30
___________________________________________________________________
Page 29 of 30
Central government to finalize agency for EWS housing projects in six
cities
These six cities were selected as ‘live laboratories’ for the pilot project to build 1,000 houses
using innovative technologies that are low-cost, sustainable and disaster-resistant.
The central government is expected to finalize on Tuesday an experiment on affordable housing in six
cities, including Rajkot, with implementation of agencies as well as global technologies.
These six cities were selected as „live laboratories‟ for the pilot project to build 1,000 houses using
innovative technologies that are low-cost, sustainable and disaster-resistant.
Earlier this year, the urban development ministry‟s technical evaluation committee had evaluated 54
proven technology providers with 32 new technologies for housing projects from 25 countries. Of
these six technologies were finalized and the agencies had displayed houses they built using these
technologies at IIT-Roorkee in March this year.
“Rajkot has seen some path-breaking work in technology adoption in public housing. We have already
implemented Smart Ghar 3 where all green building norms have been followed. In fact, ours is a
lighthouse project for other cities in public housing,” said Banchhanidhi Pani, municipal
commissioner, Rajkot.
Rajkot Municipal Corporation (RMC) is building Raiya Smart City, where nearly 1,200 houses will
be built using innovative technology. The selected agency will be responsible for implementing the
project that includes works like site cleaning, excavation, construction, procurement of material
among others using the chosen technology.
Pani said the beneficiaries of this housing project will mainly be those to contribute to the Smart City
area. “This project will serve as a lighthouse not only for government-funded housing projects, but
also for the private builders on adoption of technology and green building norms,” he added.
In the Smart Ghar projects implemented in the city till date, RMC has used the traditional principles
of sun path, wind path and exhaust in all the houses.
Apart from Rajkot, the other cities selected for the project include Indore, Chennai, Agartala and
Lucknow and Ranchi.
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/central-government-to-finalize-agency-for-ews-housing-projects-in-six-cities/70750008
Page 30 of 30
Ulhasnagar residents to discuss redevelopment issue with Maharashtra
government
At the meeting, affected residents from building, representatives of NGOs and different political
leaders were present.
The residents of Mahak building in Ulhasnagar in Maharashtra's Thane district, which collapse last
week, has decided to form a committee of flat residents, politicians and NGOs to raise their demand
with the Maharashtra government.
The decision about forming a committee was taken on Monday evening during a meeting in
Ulhasnagar organised by Ulhasnagar Municipal Corporation mayor Pancham Kalani and deputy
mayor Jeevan Idnani.
At the meeting, affected residents from building, representatives of NGOs and different political
leaders were present.
During the meeting it was decided that the committee on Wednesday would meet secretary of town
planning department at Mantralaya with their demands for approval of Development Control rules for
Ulhasnagar city so that affected building can be redevelop using proper FSI.
In Ulhasnagar last week one building collapsed while three buildings have been sealed by UMC
making over 500 residents homeless.
In the last 10 years, the city has witnessed 38 building either collapsing or getting sealed by UMC.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 20, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/ulhasnagar-residents-to-discuss-redevelopment-issue-with-maharashtra-government/70753046