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10-Oct-2019 22-Nov-2019

CREDAI Bengal Daily News Update | 22.11.19

Projects registered under Bihar RERA rise by 91% in one year:

Report

According to the latest data of Ministry of Housing and Urban Affairs (MoHUA), the

country recorded an increase of 43% in registration of real estate projects under RERA.

There has been 91% increase in the number of projects registered under the Real Estate

Regulatory Authority (RERA) Bihar in the past one year, as per the data provided by the

officials here on Wednesday.

According to the latest data of Ministry of Housing and Urban Affairs (MoHUA), the country

recorded an increase of 43% in registration of real estate projects under RERA.

As on November 15, RERA Bihar has registered 787 projects and secured 11th rank among 25

states in the country. The state is ranked 12th with the registration of 256 real estate agents.

RERA Bihar has disposed of 109 cases till November 15 and secured the 13th rank in this

category.

RERA Bihar chairman Afzal Amanullah told this newspaper on Wednesday that real estate

projects in Bihar were less than in other states like Maharashtra, Delhi and Gujarat because the

sector was not developed here. “In Bihar, most of the builders have submitted required papers

for the registration of their ongoing as well as new projects. In spite of the constraints, the

progress in registration of projects, real estate agents and court cases is very good,” he said.

“About 75% of the projects registered with the authority are in Patna district. We have sent suo

motu notices to 402 projects without registration and received 710 complaints from the home

buyers,” he added.

To keep a track on non-registered projects in state, RERA Bihar has asked the district

administration to direct the block development officers to complain about such builders.

RERA Bihar member Subodh Kumar Sinha said 520 projects have been registered in one year.

Earlier, it was 272. “We have received 1,150 new applications for registration of the ongoing

and new projects. All the applications are under scrutiny. Altogether 1,112 cases are pending

with RERA bench,” he said.

_______________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date November 21, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/projects-registered-under-bihar-rera-rise-by-91-in-one-year-report/72152748

With RBI at the helm, lenders expect faster DHFL resolution

The comments come a day after the RBI invoked the provisions of the recently notified

provisions in the IBC and superseded the DHFL board and appointed an administrator

and said the company would go to NCLT shortly.

With the Reserve Bank spearheading the bankruptcy process of the troubled mortgage

lender DHFL, the system can expect a faster resolution, a top banker has said.

The banker also defended the lenders, saying they cannot be blamed for the troubles with the

third largest pureplay mortgage player, which became the first NCLT case from the NBFC/HFC

segment, and asserted that left to themselves, the banks would have easily resolved the case.

The comments come a day after the RBI invoked the provisions of the recently notified

provisions in the IBC and superseded the DHFL board and appointed an administrator and said

the company would go to NCLT shortly.

"Those timelines which are there in regular IBC may not be needed in this case because it is a

regulator- driven process," the banker told , wishing not be quoted.

"Obviously it is different than any other IBC process. A regulator-driven IBC process will

accelerate the entire process," he added.

It can be noted that under the IBC, a dud asset case has to be resolved within 180 days, which

can be extended to 330 days after the latest amendments.

The banker said lenders will help the RBI in the process as they know the asset very well and

will act as the first point of call for the central bank.

He said the Section 227 of the IBC has been a boon for the lenders, which will help resolve

toxic cases involving NBFCs like DHFL, and hoped that there should not be very many of such

cases.

Corporate lawyer Behram Vakil, who was involved in the framing of the IBC, also said the

amendments will give more teeth to the law and that DHFL resolution is an "uncharted

territory" and expressed confidence that the RBI will move fast on DHFL resolution.

Meanwhile, the banker also defended the lenders' role in the DHFL case so far, hinting that the

presence of mutual funds who had their own views on various aspects, prevented the asset from



Link https://realty.economictimes.indiatimes.com/news/allied-industries/with-rbi-at-the-helm-lenders-expect-faster-dhfl-resolution/72176967

getting resolved till now.

He said DHFL's biggest asset is the loans that it has made, and made it clear that like any other

NBFC, it would have done securitisation deals.

________________________________________________________________

Flexible space take-up in India touched two million sq ft in Q3:

Report

Bengaluru dominated the flexible space stock, followed by Delhi NCR and Mumbai.

Flexible space penetration was the highest in Delhi NCR and Bangalore; Mumbai and

Pune displayed similar penetration patterns similar to Hyderabad.

Absorption of flexible space across India touched 2 million sq ft in the quarter ended September

led by Bangalore, Delhi-NCR and Mumbai. These prime office markets accounted for about

70% of total flexible office space take-up, said a CBRE South Asia report.

Bangalore dominated the flexible space stock, followed by Delhi NCR and Mumbai. Flexible

space penetration was the highest in Delhi NCR and Bangalore; Mumbai and Pune displayed

similar penetration patterns similar to Hyderabad.

“We expect that landlords will increasingly cater to occupier interest by providing space-as-a-

service on demand. Given that the Indian flexible space market is one of the biggest across

APAC, we anticipate that this segment will remain high on the investor radar as well,” said

Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa,

CBRE.

He expects flexible space leasing to be around 9 million sq ft in 2019 and around 9-10 million

sq ft in 2020.

Across Asia-Pacific region, flexible space stock has crossed 65 million sq ft and 25 million sq ft

in India.

Bangalore dominated the flexible space stock with 7.8 million sq. ft., followed by Delhi-NCR

and Mumbai, with 6.7 million sq ft and 4.6 million sq ft, respectively. Flexible space

penetration was highest in Delhi NCR at 6.1% and Bangalore 4.6%, followed by Mumbai, Pune

and Hyderabad at 3.7%, 3.8% and 3.5%, respectively.

The number of small-to-medium-sized deals with 20,000 - 100,000 sq ft size rose from 49% in

June quarter to 54% in September quarter. However, the number of large-sized deals exceeding

100,000 sq ft size dipped from 14% in the previous quarter to 12% in September quarter.

“On an average, deal sizes were larger in India as compared to APAC in September quarter.

The quarter also witnessed an increased inflow of funds with about $ 100 million of funding

provided by angel investors / PE funds / debt funds,” said Ram Chandnani, Managing Director,



Link https://realty.economictimes.indiatimes.com/news/commercial/flexible-space-take-up-in-india-touched-two-million-sq-ft-in-q3-report/72172429

Advisory and Transaction Services India, CBRE.

Going forward, corporates are expected to increasingly adopt flexible spaces within their real

estate portfolios as they would progressively try to engage employees by providing multiple

space options. Apart from tier I cities, flexible space operators are expected to compete for

high-quality large-sized spaces, increasingly pre-leasing space in quality, investment-grade

developments or look for semi-investment and second-generation spaces.

Operators are now expected to now consider newer, smaller markets as well as concentrate on

improving efficiencies within the existing centers.

________________________________________________________________________________________________

Air India to raise around Rs 500 crore from its Connaught Place

property

State-run consultancy firm NBCC (India) Ltd has prepared a plan to monetise the debt-

ridden national carrier’s vacant land at Baba Kharak Singh Marg near Connaught Place.

Air India is set to raise around Rs 500 crore by developing 4.2 acres of vacant land near

Delhi’s Connaught Place, the most expensive office location in the country, two people aware

of the development said.

State-run consultancy firm NBCC (India) Ltd has prepared a plan to monetise the debt-ridden

national carrier’s vacant land at Baba Kharak Singh Marg near Connaught Place, they said.

NBCC will construct and sell the commercial space and hand over the money to Air India. “The

vacant land is not stuck in any litigation and we plan to have a ground plus four level of

commercial space, including two level of parking,” an NBCC official told ET on condition of

anonymity. “The space will be sold in the open market for office and retail space.”

NBCC expects to generate more than Rs 750 crore from the land parcel and after deducting the

construction cost and project management consultancy, it will give around Rs 500 crore to the

state-run airline, the person said.

________________________________________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/commercial/air-india-to-raise-around-rs-500-crore-from-its-connaught-place-property/72177065


Karnataka government plans online platform to trade TDRs like

equity

The TDR scheme was introduced by the state government in 2006, but failed to take off.

The Karnataka government plans to digitise and dematerialise transfer of development rights

(TDR) certificates and develop a market on the model of stock exchanges. The state

government has engaged NCDEX eMarkets (NeML), the web-based online commodities spot

market and services firm, to develop an online platform to enable the trade of TDRs like

equities.

“Currently, there is no clarity and transparency on who holds TDRs and how much. We will

soon go live with the new system where TDRs can be traded as shares,” said EV Ramana

Reddy, additional chief secretary, department of information technology, biotechnology and

science &technology, government of Karnataka.

The TDR scheme was introduced by the state government in 2006, but failed to take off. Under

the TDR . scheme, Development Rights Certificates (DRCs) are issued to the land losers

(whose properties are acquired) in lieu of financial compensation. It is thus a virtual property,

which is two times the value of the land acquired. DRC holders can either use it for themselves

to increase the built-up area on their properties or sell to those in need of it.

“This platform could be used by city corporations and Bruhat Bengaluru Mahanagara Palike

(BBMP) in the state besides builders and developers. This will help in bringing the entire data

regarding TDRs in the public domain,” said Reddy.

The Centre is also putting in place an automatic building plan approval mechanism within the

BBMP limits. Currently, the system is in place across 151 urban local bodies in the state.

“This new method will start shortly and it will be time-bound. There will be joint inspections by

the authorities too,” Reddy said.

Bengaluru is one of the top performing residential and commercial markets in the country and

has the lowest inventory overhang among the top-7 cities at 15 months. India’s IT capital saw

an increase of 41% in new launches in the quarter at 9,509 units, while housing sales fell

marginally by 3%, data from PropEquity showed.

Under the TDR . scheme, Development Rights Certificates (DRCs) are issued to the land losers

(whose properties are acquired) in lieu of financial compensation. It is thus a virtual property,

which is two times the value of the land acquired. DRC holders can either use it for themselves

to increase the built-up area on their properties or sell to those in need of it.

“This platform could be used by city corporations and Bruhat Bengaluru Mahanagara Palike

(BBMP) in the state besides builders and developers. This will help in bringing the entire data


Link https://realty.economictimes.indiatimes.com/news/technology/karnataka-government-plans-online-platform-to-trade-tdrs-like-equity/72163458

regarding TDRs in the public domain,” said Reddy.

The Centre is also putting in place an automatic building plan approval mechanism within the

BBMP limits. Currently, the system is in place across 151 urban local bodies in the state.

“This new method will start shortly and it will be time-bound. There will be joint inspections by

the authorities too,” Reddy said.

Bengaluru is one of the top performing residential and commercial markets in the country and

has the lowest inventory overhang among the top-7 cities at 15 months. India’s IT capital saw

an increase of 41 per cent in new launches in the quarter at 9,509 units, while housing sales fell

marginally by 3 per cent, data from PropEquity showed.

________________________________________________________________________________________________


Adani, Piramal among major contenders for DHFL: Sources

The RBI also superseded the Board of Directors of DHFL owing to governance concerns

and defaults by DHFL in meeting various payment obligations.

The Gautam Adani-led Group and the Piramal Group are among the major contenders for the

crisis-hit Dewan Housing Finance Corporation (DHFL), sources said.

Further, Apollo is also said to be in the fray to take over the troubled company, after the

Reserve Bank of India (RBI) on Wednesday said that it would initiate insolvency proceedings

for the resolution of the company.

The RBI also superseded the Board of Directors of DHFL owing to governance concerns and

defaults by DHFL in meeting various payment obligations.

The central bank also appointed R. Subramaniakumar, ex-MD and CEO of Indian Overseas

Bank, as the administrator of DHFL under Section 45-IE (2) of the Reserve Bank of India Act,

1934.

With the RBI's decision, DHFL is set to become the first non-banking financial company

(NBFC) to be referred to the National Company Law Tribunal (NCLT) under new rules notified

by the government.

________________________________________________________________


Link https://realty.economictimes.indiatimes.com/news/allied-industries/adani-piramal-among-major-contenders-for-dhfl-sources/72176975 Newspaper/Online ET Realty (online)

Puranik Builders files fresh IPO papers with Sebi to raise Rs 1,000

crore

According to market sources, size of the initial public offer (IPO) is around Rs 1,000

crore.

Realty firm Puranik Builders has filed fresh papers with markets regulator Sebi to raise an

estimated Rs 1,000 crore through its initial share-sale. The IPO comprises fresh issue of shares

worth Rs 810 crore, besides, an offer for sale up to 18,59,620 equity shares by the company's

promoters and existing shareholders, according to the draft papers filed with Securities and

Exchange Board of India (Sebi).

Proceeds of the issue will be utilised towards repayment of loan and other general corporate

purposes. In addition, the company plans to receive the benefits of listing of its equity shares on

the stock exchanges.

According to market sources, size of the initial public offer (IPO) is around Rs 1,000 crore.

Edelweiss Financial Services Ltd and Axis Capital will manage the company's initial share-sale.

Shares of the company will be listed on the BSE and NSE.

Earlier in June 2018, Puranik Builders, a Mumbai-based residential real estate developer, had

approached Sebi with its IPO papers and had received the markets regulator's clearance to

launch the public issue but did not go ahead with the plans then.

________________________________________________________________________________________________


Link https://realty.economictimes.indiatimes.com/news/industry/puranik-builders-files-fresh-ipo-papers-with-sebi-to-raise-rs-1000-crore/72163162 Newspaper/Online ET Realty (online)

Andhra Pradesh plans concept cities in Vishakhapatnam, Tirupati

& Anantapur

Keeping in view of geographical and infrastructural advantages of Visakhapatnam,

Tirupati and Ananthapuram, the chief minister wants the new concept cities to attract

big-ticket investments.

In a move to ignite industrial development, chief minister Y S Jaganmohan Reddy has proposed

setting up of concept cities in Vishakapatnam, Tirupati and Anantapur region.

He asked officials to ready blueprint for the creation of concept cities which would host

industries and residential townships.

Keeping in view of geographical and infrastructural advantages of Visakhapatnam, Tirupati and

Ananthapuram, the chief minister wants the new concept cities to attract big-ticket investments.

Reviewing projects of Information Technology (IT) and Industries departments here on

Wednesday, the chief minister asked the officials to ready the plans for the concept cities in a

radius of 10 sq km.

“Each concept city can be spread over at least 10 sq km. We should create

required infrastructure to attract investments into these cities,” said the chief minister. He

advised the officials to take Columbia city of Indiana state in USA as model to plan the concept

cities.

He said that concept cities should be made as high-end technology and IT cities. CM observed

that Columbia city has unique features to attract the big-ticket investments.

Jagan said that IT giant TCS had expressed its in principal willingness to make foot in Tirupati

and asked the officials to make further arrangements to rope in the project. He had also directed

the officials to convert the International Institute of Digital Technologies (IIDT) in Tirupati to

world-class skill development centre to provide the highly skilled youth to the upcoming IT

industries in the region.

He said that single-window system has been introduced to sanction industries to bring

transparency. “We are ready to provide land, water and power at nominal rates to industries in

these regions,” said the chief minister.

Jagan said it was strange that opposition leader N Chandrababu Naidu was spreading a false

campaign on industrial promotion and ease of doing business of his days although Naidu had

not cleared incentives worth Rs 4,000 crore to the industries in the last five years.

“We are burdened with mistakes of Naidu’s regime. He is still talking tall about development,”

Jagan said. The chief minister, however, asked the officials to ready plans to empower


Link https://realty.economictimes.indiatimes.com/news/infrastructure/andhra-pradesh-plans-concept-cities-in-vishakhapatnam-tirupati-anantapur/72152714

investors. He said no investor should wait for government incentives for years together.

The officials said since Tirupati and Anathapuram should be showcased as ideal locations for

setting up different industries including IT, hardware and automobile since they are close to

Chennai and Bengaluru.

Visakhapatnam could be a big attraction to get investments as it has a port and airport. The

chief minister’s decision to create three concept cities in three different locations would spur

growth in the state, said industries minister Mekapati Gautham Reddy.

Meanwhile, the chief minister asked the IT department to make backoffices of village and ward

secretariats strong as they were going to be served as one-point public reddressal mechanism.

He said strong secretariats in village and ward would eliminate corruption. He said

government’s welfare schemes would be implemented through village and ward secretariats and

they should be IT-enabled. He asked the officials to train the staff and volunteers at the

secretariats in handling the IT solutions.

________________________________________________________________________________________________

Over 90,000 eligible beneficiaries left out of PMAY-G in

Uttarakhand

It was decided at the meeting that around 94,000 eligible beneficiaries of the scheme who

could not avail of it would be brought back under its ambit, an official release said.

Over 90,000 eligible beneficiaries under the Pradhan Mantri Gramin Awas Yojana were left out

of the ambit of the scheme in Uttarakhand.

The fact emerged at a meeting held on Wednesday by state Cooperative and Higher Education

Minister Dhan Singh Rawat to review the progress of projects under the Rural Development

Department.

It was decided at the meeting that around 94,000 eligible beneficiaries of the scheme who could

not avail of it would be brought back under its ambit, an official release said.

The beneficiaries of the scheme were selected on the basis of the 2011 Census.

The minister asked the secretary, rural development, to prepare a proposal, seeking the

inclusion of the left-out beneficiaries under the scheme.

________________________________________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/over-90000-eligible-beneficiaries-left-out-of-pmay-g-in-uttarakhand/72152510

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