sept 2019 - credai bengalcredaibengal.in/wp-content/uploads/2019/09/25sept... · a bench of chief...

25-Sept-2019

CREDAI Bengal Daily News Update | 25.09.19

Gujarat government hikes FSI to boost realty sector

Prominent among the measures were raising Floor Space Index (FSI) and special

approval for constructing "Iconic buildings" in four cities.

After central government's recent measure to bail out stalled housing

projects, Gujarat government on Monday unveiled slew of measures to boost the state's real

estate sector.

Prominent among the measures were raising Floor Space Index (FSI) and special approval for

constructing "Iconic buildings" in four cities.

"Today morning I signed the final Comprehensive General Development Control Regulation

(CGDCR) notification," Gujarat chief minister Vijay Rupani announced at CREDAI's Growth

Ambassadors Summit 2019, organised by Gujarat state chapter of the industry body the

Confederation of Real Estate Developers Association of India (CREDAI).

According to the provisions contained in the final CGDCR, prepared after incorporating

changes suggested by all the stake holders, developers will get an FSI of 3.6 on roads having

width of 36 metres to 44 metres. The permissible FSI for projects along roads with the width of

45 metres and more now stands at 4.

Newspaper/Online ET Realty (online)

Date September 24, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/gujarat-government-hikes-fsi-to-boost-realty-sector/71268781

Common facilities such as clubhouse, gymnasium, play area, swimming pool, etc. will not be

considered as a part of the total FSI from now on. "There will not be any deduction from plots

measuring up to 2,500 sq mt in non-town planning areas," the chief minister added.

"We want iconic skyline buildings on the lines of Dubai and Hong Kong to come up in Gujarat.

We will give additional FSI for such projects. We will also give special approvals for such

iconic structures," he stressed.

While industry players welcomed the measures by stating that these will bring down the cost of

homes and offices in Gujarat. They, however, said that increase in FSI to 4 for projects on roads

with 45 metres or more width will not benefit R2 and R3 zones in Ahmedabad. These zones,

mainly falling on the other side of the SG Highway, the base FSI in these areas is 1.2 and 0.3,

respectively.

"The FSI of 4 will be given in areas where base FSI is 1.5. This means R2 and R3 zones will

not benefit from higher FSI of 4. Only R1 zone in the city has base FSI of 1.5," added a real

estate sector expert.

According to Amarjeet Singh, chairman, Gujarat Real Estate Regulatory Authority, over 6,000

real estate projects in Gujarat are registered with the state regulatory authority and the

investment in these projects is Rs 2 lakh crore.

Stating that Gujarat government is working to achieve prime minister Narendra Modi's dream

of 'Housing for All', deputy chief minister Nitin Patel said, "We are also working to simplify

laws and to further improve Gujarat's Ease of Doing Business ranking."

Gujarat's energy minister Saurabh Patel also said that the state government has set the target of

achieving renewable energy generation capacity of 30,000MW by 2022. A total 8 lakh

households will be covered under solar rooftop by 2022.

________________________________________________________________

Police cannot attach immovable properties during investigation of

criminal case: SC

A bench of Chief Justice Ranjan Gogoi and justices Deepak Gupta and Sanjiv Khanna

held that Section 102 of CrPC does not include the power of police to seize and attach

immovable properties.

The Supreme Court on Tuesday held that police cannot attach immovable properties during

investigation of a criminal case.

A bench of Chief Justice Ranjan Gogoi and justices Deepak Gupta and Sanjiv Khanna held that

Section 102 of CrPC does not include the power of police to seize and attach immovable

properties.

Justice Khanna, who read the judgment for the bench, said it is a concurring judgment but

Justice Gupta has given some additional reasons.

The top court interpreted Section 102 of the Criminal Procedure Code, which gives power to

police for seizure of any property during criminal investigation of any case.

The Bombay High Court, in its majority verdict, had held that police has no power to seize

property during the course of investigation.

The Maharashtra government had challenged the said verdict of the high court before the top

court.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/police-cannot-attach-immovable-properties-during-investigation-of-criminal-case-sc/71276147

SBI approaches SEBI seeking an exception for MFs on DHFL

The nation’s top bank is apprehensive of a systemic risk if the ongoing efforts to finalise

the resolution plan for the indebted home financier fall flat, said two people with direct

knowledge of the matter.

State Bank of India has approached the Securities and Exchange Board of India, seeking a one-

time exception for mutual funds over a rule on segregation of assets so that they could be part of

a resolution plan being worked on for Dewan Housing Finance Corp.

The nation‟s top bank is apprehensive of a systemic risk if the ongoing efforts to finalise the

resolution plan for the indebted home financier fall flat, said two people with direct knowledge

of the matter.

Lenders to DHFL are meeting on Thursday as they seek to finalise an inter creditor agreement

(ICA). A joint lenders' meeting is also scheduled on Friday.

Participation of mutual funds, which hold bonds issued by the company, is key to any resolution

plan, as approval of at least 75% of lenders by value and 60% by number is compulsory to

executive any resolution plan under the ICA.

Most mutual funds could not sign the ICA as they were not compliant to Sebi-mandated side-

pocketing, or segregation of stressed assets from performing investments.

"SBI‟s boss (chairman Rajnish Kumar) has written to Sebi as the latest rules on side-pocketing

does not allow fund houses to sign the ICA," one of the people told ET.

DHFL, SBI and Sebi did not respond until press time Tuesday to ET's emails seeking comment.

SBI, according to the people, was apprehensive of the absence of a cohesive resolution plan that

would hurt the interests of investors and could have major systemic implications.

Through an August 29 circular, Sebi had allowed mutual funds to join any resolution process

for stressed companies and sign ICAs. But, the approval came with a condition: they must

segregate assets through side-pocketing, which should be done on the day of any credit event, or

downgrade of debt below investment grade.

The credit event at DHFL had occurred prior of Sebi‟s August circular. The only fund house

that side-pocketed the DHFL exposure before that is Tata Mutual Fund. The asset management

company has agreed to sign the ICA.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-approaches-sebi-seeking-an-exception-for-mfs-on-dhfl/71285885

"Since they (funds other than Tata MF) have not segregated the portfolio, they are unable to

participate in the ICA process," said a senior executive involved in the process.

SBI chairman Rajnish Kumar is said to have requested the market regulator to issue "suitable

directions" so that the resolution plan was collectively agreed on and implemented by a group

of lenders.

Banks have Rs 35,000 crore of exposure to the company through loans and also hold non-

convertible debentures issued by it. Bond holders, including mutual funds, insurance companies

and pension funds, have a Rs 45,000 crore exposure, which means the company owes creditors

about Rs 80,000 crore.

Catalyst, the custodian of bondholders in DHFL, had sent communications to about 87,000

debenture holders asking if they could join the ICA, and received responses from 24,400. Some

of those respondents have agreed to sign the ICA, while many others declined. Some did not

respond.

Redemption or roll-over of bonds is one of the proposals in the restructuring that will relax the

terms of repayments for DHFL. SBI sought some clarification also on this, citing various

regulatory provisions.

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Noida Authority to issue OCs and completion certificates online

The software can be accessed from the Noida Authority website as well as the Nivesh

Mitra website, a single window system for investors in Uttar Pradesh.

The Noida Authority is all set to make the process of issuing occupancy and completion

certificates online. The web page for applications and issuing the certificates for residential and

industrial areas will be inaugurated on Wednesday.

The software can be accessed from the Noida Authority website as well as the Nivesh Mitra

website, a single window system for investors in Uttar Pradesh.

“One of our primary goals is to make all processes online soon so that we can improve

efficiency and bring transparency,” said Ritu Maheshwari, CEO, Noida Authority.

Officials said that one can now apply for the certificates and pay the processing fee online.

Once the authority receives the request, a date and time for the survey visit would be conveyed

to the applicant. After a physical survey, a report will be prepared and uploaded, which can also

be viewed on the website

If there are any compounding charges applicable, that can also be paid online. Once all

processes are complete, a digitally signed certificate would be issued. “We are starting with

industrial and residential plots and we can also get a feedback,” said an official.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/technology/noida-authority-to-issue-ocs-and-completion-certificates-online/71286025

DHFL to discuss draft resolution plan with bankers

DHFL is the fourth-largest Indian housing finance company based on loans outstanding as

of March.

Financially-strapped Dewan Housing Finance Corporation (DHFL) will discuss its draft

resolution plan at a meeting of lenders on Wednesday.

"Further to the various disclosures made by the company in respect of its ongoing proposal on

debt restructuring and formulation of a resolution plan under the Reserve Bank of India's

Prudential Framework for Resolution of Stressed Assets dated June 7, the company would like

to inform you that it is been undertaking extensive discussions with its lenders," the company

said in a statement on Tuesday.

"Pursuant to these discussions, the company will be holding a meeting on September 25 with its

bank lenders to discuss the draft resolution plan. A further meeting will also be held on

September 27 by the company with all its institutional creditors in connection with the draft

resolution plan," it added.

DHFL is the fourth-largest Indian housing finance company based on loans outstanding as of

March. It has been facing a liquidity crisis since September 2018 but has paid over Rs 41,000

crore towards discharging its financial obligations.

The housing finance company has faced multiple rating downgrades in recent months. DHFL

says it has been working towards resolving its liquidity crisis in a comprehensive and timely

manner.

Last month, DHFL said it defaulted on its financial repayment obligations worth Rs 1,571 crore

with regard to the issuance of bonds and commercial papers. The company declared its March

quarter results after months of delay on July 13 and reported a loss of Rs 2,223 crore.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-to-discuss-draft-resolution-plan-with-bankers/71273755

Uttar Pradesh to give Rs 50 crore per year to seven civic bodies

under smart city scheme

The 10 others -- Lucknow, Varanasi, Kanpur, Allahabad, Agra, Aligarh, Jhansi, Bareilly,

Saharanpur and Moradabad -- have already been selected under the Smart City project.

The Uttar Pradesh government on Tuesday decided to provide Rs 50 crore to seven municipal

corporations for the next five years under the Smart City project.

"Municipal Corporations of Ayodhya, Mathura-Vrindavan, Meerut, Ghaziabad, Gorakhpur,

Firozbad and Shahjahanpur will be given Rs 50 crore per year for the next five years under the

Smart City mission," government spokesperson Shrikant Sharma told reporters.

He was briefing media about decisions taken at cabinet meeting chaired by Chief Minister Yogi

Adityanath.

There are 17 municipal corporations in the state. The 10 others -- Lucknow, Varanasi, Kanpur,

Allahabad, Agra, Aligarh, Jhansi, Bareilly, Saharanpur and Moradabad -- have already been

selected under the Smart City project.

The cabinet has also decided to form the post of the director general of school education for

ensuring financial discipline and coordination in the basic education department, the

spokesperson added.

_______________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/uttar-pradesh-to-give-rs-50-crore-per-year-to-seven-civic-bodies-under-smart-city-scheme/71279527

Pune: Height restriction a major hurdle to SRA schemes in Parvati

area

According to experts, height restriction for constructions in these areas has been a major

hurdle to SRA schemes.

Changes in the development plan to push slum rehabilitation and a stricter implementation of

safety guidelines along BRTS lanes will be key to the transformation of the Parvati

constituency.

According to experts, height restriction for constructions in these areas has been a major hurdle

to SRA schemes. The current construction rules, many said, have not taken into account the

area‟s population.

For example, developers cannot take up projects higher than 21 metres. Rules dictate that only

five to six-storeyed buildings can be built in the Parvati area. But the real requirement is of

around 10 to 12 storeys so that a higher number of occupants can be accommodated by the

structures.

The ideal height of the flat systems then, experts said, should be at least 40 metres. But such

permissions have not been given as tall buildings could obstruct the view of the heritage Parvati

site. The SRA scheme has also been impacted by the reluctance of builders to construct housing

for slum dwellers and commercial spaces with leftover parcels.



Link https://realty.economictimes.indiatimes.com/news/industry/pune-height-restriction-a-major-hurdle-to-sra-schemes-in-parvati-area/71275546

“We are still relying on plans for „relief housing‟. Builders will come in only if projects are

viable. Nobody‟s going to invest in commercial spaces unless they see a clear business plan.

This is why we've had delays in Parvati," said a city builder who is knowledgeable of the SRA

project.

These delays have caused havoc in the settlements.

“We have weak water supply, poor health and general hygiene concerns across the slum areas.

Certain short term measures have helped, but we need to think about the future,” said Ganesh

Kiratkarve, a resident of Parvati. Rajendra Nimbalkar, chief executive officer (CEO) of SRA,

Pune, said: “We need changes to the development rules around building. Such decisions are to

be taken at the state government level.”

As far as the BRTS is concerned, a ready reckoner is an IIT Bombay study that highlighted the

system's flaws. However, suggestions made by the experts remain on paper. The study had

reiterated the need to stop private cars from operating on the bus-only lanes.

Jugal Rathi, a member of the PMPML Pravasi Manch said every stakeholder has failed to

implement the BRTS project in a proper manner. “The project is virtually on its deathbed.

Crores in taxpayer money has been utilized, but there‟s still nothing to show for it,” he said.

_______________________________________________________________

Lucknow development body's nod to building plans must for new

power connections

MVVNL said the existing sub-stations were overloaded and could not bear more burden.

In reply, LDA said that power authority should not provide electricity to houses and

commercial units which have not been approved by it.

If you are planning to construct a housing or commercial unit in the city, make sure you get

your unit map approved from the Lucknow Development Authority (LDA) to

get electricity connection from Lucknow Electricity Supply Administration (Lesa).

LDA vice-chairman PN Singh has recently written to Lesa authorities requesting them not to

give new electricity connections to owners of houses or commercial units if they do not have

their maps approved by the development authority.

Lesa has agreed to the proposal and issued an order making it mandatory for power connection

applicants to submit registration number obtained from the development authority after getting

their maps approved, along with other documents to get electricity connection.

It started when Madhyanchal Vidyut Vitran Nigam Limited (MVVNL) wrote to LDA on

August 16 stating that it would not provide electricity to new apartments and houses built by the

development authority unless it provided land for constructing power sub-station.

MVVNL said the existing sub-stations were overloaded and could not bear more burden. In

reply, LDA said that power authority should not provide electricity to houses and commercial

units which have not been approved by it.

The authority also gave a list of 450 unauthorised units in Gomtinagar, Gomtinagar Extension,

Jankipuram and Kanpur road saying such units were behind overloading of sub-stations.

LDA vice-chairman PN Singh said, “These illegal housing and commercial units are burdening

MVVNL. We have got the reply from Lesa, and from now onwards, it has become mandatory

for everyone to get their maps approved from us to get electricity connection. LDA specifies a

number of housing and commercial units that should be constructed in a particular area of the

city. However, illegal constructions adversely affect the composition of town planning.”

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/lucknow-development-bodys-nod-to-building-plans-must-for-new-power-connections/71275370

Nashik civic body launches amnesty scheme for tax defaulters

As per the scheme, defaulters who pay their dues in one go will get rebate in penalty,

warrant and notice fees.

The Nashik Municipal Corporation (NMC) has started an amnesty scheme for property tax

defaulters from September 16 to October 15.

As per the scheme, defaulters who pay their dues in one go will get rebate in penalty, warrant

and notice fees. The NMC recovers 2% fine per month on dues from the last day of paying

taxes.

Moreover, it also recovers expenses of notices and warrants issued to the defaulters.

As per the scheme, the property tax defaulters will get 75% rebate if they clear their dues by

Sept 30 and 50% if they pay between October 1 and 10. The defaulters will get 25% rebate on

penalty, warrant and notice fees if they pay tax the between October 11 and 15.

The NMC has also decided to take tough action against the property tax defaulters after the state

assembly elections. This is the final opportunity for the tax payers and they may get rebate in

penalty, warrant and notices fees.

“The amnesty scheme is already into effect from September 16. The NMC has collected

property tax amounting to Rs 3 crore after implementation of the scheme and it will be in force

till October 15. The scheme will give relief to tax defaulters as they will get rebate in penalties,”

an NMC official said.

The NMC has issued warrants to 1,252 property tax defaulters for not paying their dues despite

sending the notices twice. The defaulters owe Rs 15.75 crore and they have been given an

ultimatum of 21 days to clear their dues or face action of seizure and auction of their properties.

In the last financial year, the NMC had collected property tax amounting to Rs 112 crore. It was

for the first time that the NMC‟s property tax collection target had touched Rs 100 crore.

Now, the NMC has set a property tax collection target of Rs 250 crore for the current financial

year 2019-20, but it has so far collected only Rs 65 crore.

______________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-civic-body-launches-amnesty-scheme-for-tax-defaulters/71271703

Three years on, RERA yet to be formed in Kerala

The selection committee constituted for choosing chairperson and members of RERA had

received 14 applications for the post of chairperson and 21 applications for the post of full-

time member.

As the state comes face to face with one of the worst ever real estate crises arising out of the

Maradu issue, the government continues to drag its feet over the formation of real estate

regulatory authority (RERA) in the state.

In August, the reply from the office of LSG minister to an RTI application showed that the file

related to RERA was in “circulation” and information would be furnished once file was

available after circulation.

Earlier queries to departments of local-self government and law evinced replies which said that

LSGD had no information regarding report of selection committee while law department replied

that the file on this subject was returned to office of LSG minister on May 2, 2019.

The selection committee constituted for choosing chairperson and members of RERA had

received 14 applications for the post of chairperson and 21 applications for the post of full-time

member.

The latest status compliance report prepared by ministry of housing and urban affairs on

implementation of RERA shows that the interim regulatory authority formed by the state has

not processed a single complaint till date. Kerala is one among the eight states/Union territories

which are yet to set up a real estate appellate tribunal and one among the six states which have

failed to operationalise websites under the provision of RERA. A total of 44,295 real estate

projects and 35,031 real estate agents have registered so far under RERA across the country.

The state government had issued notification for the appointment of chairperson and members

of the proposed RERA two years after RERA Act 2016 came into force.

The Act, which was passed by Parliament to introduce governance in real estate sector, had

come into force in May 2016. Although projects completed before the notification of the Act do

not come under the ambit of RERA, lack of a regulatory body has been hurting the consumers.

The rules say that the chairperson and other members of the authority shall be appointed by the

appropriate government on the recommendations of a selection committee consisting of the

Chief Justice of the high court or his nominee, the secretary of the department dealing with

housing and the law secretary.



Link https://realty.economictimes.indiatimes.com/news/industry/three-years-on-rera-yet-to-be-formed-in-kerala/71268844

The selection committee constituted by the government had submitted its recommendations to

the government in the beginning of 2019. The government has however sat over the

recommendation owing to a reported conflict of choice over selection of chairperson.

________________________________________________________________

Rs 2,500 crore exposure to HDIL pulled PMC Bank down

Sources told Mumbai Mirror that the biggest reason for RBI’s punitive action was a loan

of Rs 2,500 crore to the now bankrupt real estate firm Housing Development and

Infrastructure Limited (HDIL).

A single account is responsible for the downfall of the Punjab & Maharashtra Cooperative

(PMC) Bank, which was launched in a tiny room in Sion Koliwada back in 1984 and grew into

a 137-branch network with more than half of its branches in the Mumbai Metropolitan Region.

The RBI yesterday put a slew of restrictions on the bank for six months citing several regulatory

lapses, primarily massive under-reporting of the non-performing assets (NPAs).

Sources told Mumbai Mirror that the biggest reason for RBI‟s punitive action was a loan of Rs

2,500 crore to the now bankrupt real estate firm Housing Development and Infrastructure

Limited (HDIL).

This newspaper has learnt that the PMC Bank‟s auditors did not classify the loan to HDIL as an

NPA despite the HDIL defaulting on repayments, and the RBI finally put its foot down and

termed the loan as a “complete loss”.

“The RBI guidelines in such cases say that the bank must make a provision for the loss. The

PMC Bank‟s cash reserves stand at around Rs 1,000 crore, well short of the Rs 2,500 crore loan

granted to the HDIL,” the source said.

When banks are asked to make provision for the NPAs, it basically means they must deduct the

NPA amount from their profits. For instance, if a bank‟s annual profit is Rs 500 crore and it is

asked for make a provision for an NPA of Rs 400 crore, its profit then stands at Rs 100 crore.

The HDIL spokesperson did not respond to queries from this newspaper and the RBI refused to

divulge into the details. A source associated with the PMC Bank said that the RBI was

convinced the loan to HDIL will have to be completely written off.

“In case the RBI felt that the loan was not a complete loss, the PMC Bank would have to make

provision for 10% of the total loan, for which it had the resources. The fact that the RBI has put

severe restrictions on the bank is proof enough that it considers the entire loan to HDIL as

NPA,” the source said.

The major restrictions on the PMC Bank include capping withdrawals at Rs 1,000 per customer

during the six-month period and banning the bank from extending new loans. The bank has also



Link https://realty.economictimes.indiatimes.com/news/industry/rs-2500-crore-exposure-to-hdil-pulled-pmc-bank-down/71286000

been barred from granting or renewing loans and advances, making any investment, incurring

any liability including borrowing funds and acceptance of fresh deposits, disbursing or agreeing

to disburse any payment whether in discharge of its liabilities and obligations without the RBI‟s

consent.

The bank cannot enter into any arrangement for sale, transfer or otherwise dispose of any of its

properties or assets, even as the RBI clarified that the restrictions should not be construed as

cancellation of PMC‟s banking licence.

As per the bank‟s annual report, its net profit declined marginally 1.2% to Rs 99.69 crore for the

year to March 2019, while its net NPAs more than doubled to 2.19% from 1.05%.

The development comes amidst the growing gloom among the public already battling a

deepening slowdown which has resulted in job losses and rising prices of essential goods. The

scenes outside the PMC Bank‟s headquarters in Bhandup conveyed the chaos across the city as

hundreds of depositors rushed in on hearing the news of the bank going „belly up‟.

Serpentine queues formed as early as 6 am yesterday outside the branches of the Punjab and

Maharashtra Cooperative (PMC) Bank across the city after the news of the Reserve Bank of

India (RBI) restrictions on the bank became public.

Several people broke down in tears after being told that they can only withdraw up to Rs 1,000.

Many of these had fixed deposit accounts worth lakhs of rupees in the bank, while many others

had salary accounts which helped them meet their daily expenses.

The PMC Bank has around Rs 11,000 crore of public deposits. Those who rushed into the

branches speak for itself the profile of PMC Bank customers: autorickshaw and taxi drivers,

small-time businessmen, pensioners and homemakers, and the elderly. As the number of

panicked customers began to swell and tempers frayed, the bank had to call for police

protection both for its headquarters as well as at other branches.

Vidyadhar Anaskar, president of the Maharashtra Urban Cooperative Bank Federation, said that

the RBI may have acted in haste. “In case of dispute between the bank‟s auditors and the RBI,

there should be an appellate authority to decide on the matter. Both the auditors and the RBI

rely on the same set of documents to identify the NPAs. If the bank‟s auditors are found to be

right, who will compensate for the loss of reputation?” Anaskar asked.

________________________________________________________________

Greater Noida: Bail pleas of 19 builders rejected over illegal

constructions in Shahberi

Dismissing the bails, the court observed that the construction and sale of flats and houses

was done illegally in the area notified by the GNIDA in 2013.

Anticipatory bail pleas of 19 developers were rejected on Tuesday by a court here which was

hearing cases connected to illegal construction of high-rise buildings in Greater

Noida's Shahberi village.

Additional Sessions Judge Indrapreet Singh Josh also directed Greater Noida Industrial

Development Authority (GNIDA), district administration and police to take action within three

months against their officials who failed to prevent illegal construction in the area.

Dismissing the bails, the court observed that the construction and sale of flats and houses was

done illegally in the area notified by the GNIDA in 2013.

The Allahabad High Court too had in 2014 upheld that the region concerned in Shahberi

belonged to the GNIDA, the court noted, as it pulled up the local authority, administration and

police officials for inaction during four years while illegal constructions mushroomed.

On July 17, 2018, two adjoining buildings had collapsed in Greater Noida's Shahberi village,

leaving nine people, including a child and two women, dead.

Probe reports by administration and local authorities found that the buildings had come up

illegally, without any proper approval, as did several others which mushroomed over the years

in Shahberi, less than 50 km from Delhi.

Some of the accused developers who applied for anticipatory bail argued in the court that the

land was their private property and all construction including getting electricity, sewer

connections and even lift in some buildings was done through proper process.

"Prima facie it appears that the bail applicants did not comply with the high court order and

constructed buildings on the plot and sold them off illegally....

"Here it would be accurate to say that despite the notification and high court order, GNIDA

officers did not convey the order/instructions to local departments otherwise illegal

constructions could have stopped in the area concerned," the judge said.



Link https://realty.economictimes.indiatimes.com/news/regulatory/greater-noida-bail-pleas-of-19-builders-rejected-over-illegal-constructions-in-shahberi/71285935

He also pulled up the GNIDA for not fulfilling its responsibilities which led to illegal

construction in the area and loss of innocent people's savings.

"Had the GNIDA timely informed local departments, it would have prevented illegal

construction and sale of flats, hard earned savings of common man who bought flats there. The

future of these buildings is uncertain. Around 1,500 such illegal buildings are said to be there in

the area which are to be demolished," the judge added.

"There are lot of high-rise buildings in the area concerned and it is clear that such constructions

cannot be done in secret or done overnight. It is a process of years and it was the responsibility

of GNIDA and its officials to stop it. The GNIDA could have stopped it at initial level only.

"CEO GNIDA, district administration and district police are expected to take action against

officials of their department involved in this episode. The action should be ensured within three

months and the court be then apprised of the development," he added.

So far, over 50 FIRs have been registered against rogue builders over illegal constructions in

Shahberi and nearby areas.

As many as 257 people have been accused in these cases and more than 50 arrested so far, the

officials said.

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