sept 2019 - credai bengal
TRANSCRIPT
CREDAI Bengal Daily News Update | 18.09.19
WEST BENGAL NEWS
Newspaper/Online The Times of India
Date September 18, 2019
OTHER NEWS
DDA approves transit oriented development policy
After approval, the proposal shall be forwarded to the Ministry of Housing and Urban
Affairs (MoHUA) for its approval and notification.
The DDA on Monday approved its transit-oriented development (TOD) policy which is
focussed on development taking place around a transit corridor.The decision was taken in the
urban body's Authority meeting at Raj Niwas here chaired by Lt Governor Anil Baijal, also
chairman of the DDA.
TOD consists of a variety of high-density, mixed-use, mixed-income buildings, within a short
distance of a rapid public transport network, set in a public realm that encourages more people
to use public transport.
The Authority approved the TOD policy which is focussed on development around or along a
transit node or corridor, and facilitates complete ease of access to that transit facility, thereby
inducing people to walk, cycle and use public transportation over personal modes of transport,
the DDA said in a statement.
After approval, the proposal shall be forwarded to the Ministry of Housing and Urban Affairs
(MoHUA) for its approval and notification.
Benefits of TOD include compact mixed-use, mixed-income developments where residential,
commercial, civic or institutional establishments are located close to each other and allow local
communities to be formed, with vibrant round-the-clock active spaces (like plazas, shared parks
and open spaces, and other facilities) for leisure and recreation.
Through increased Floor Area Ratio (FAR) and density, TOD norms may provide a variety of
housing types for a range of income brackets and demographic types in the city, the DDA said.
To facilitate this, in all TOD integrated schemes, a minimum component of 30 per cent of
overall FAR shall be mandatory for Residential use. EWS FAR of 15 per cent over and above
the proposed FAR will be applicable, he urban body said.
"TOD policy would open up development opportunity to the private sector to bring in
investment into the city building, its growth and revenue, and also help cross-subsidize social
amenities, affordable housing and public transport, using a variety of possible financial
development models," it said.
Newspaper/Online ET Realty (online)
Date September 18, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/dda-approves-transit-oriented-development-policy/71176918
Among other decisions, the Authority also approved change of land use from 36.6 hectares in
district centre Narela from commercial to public and semi-public (PSP), officials said.
Out of 36.6 hectares, Indira Gandhi Delhi Technical University for Women (IGDTUW) will be
allotted 20 hectares of land and the remaining land is proposed for colleges or institutions, the
DDA said.
________________________________________________________________
Bill to evict unauthorised occupants from government
accommodations passed
This is expected to further increase the availability of government residential
accommodations for eligible persons and reduce the waiting period.
The Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2019, which was
passed by the Parliament to facilitate smooth and speedy eviction of unauthorised occupants
from government residential accommodations, came into effect from Monday.
The Gazette notification in this regard has also been issued.
"This would facilitate smooth and speedy eviction of unauthorised occupants from government
residential accommodations and ensure retrieval of these residential accommodations from
unauthorised occupants without requiring elaborate procedures," said an official statement.
This is expected to further increase the availability of government residential accommodations
for eligible persons and reduce the waiting period.
"As per the Amendment Act, the estate officer will issue short show-cause notice of three days
before the eviction of the unauthorized occupant from the government accommodation," the
statement said.
The Public Premises (Eviction of Unauthorised Occupants) Act, 1971 was enacted to provide
for eviction of unauthorised occupants from "public premises" and for certain incidental
matters.
"As per the existing allotment rules, after the end of eligibility as per the terms and conditions
of the licence, the occupants of such residential accommodations become unauthorised
occupants and are to vacate the same," it said.
The Act confers powers upon the estate officers to evict such unauthorised occupants from
"public premises" in a smooth, speedy and time-bound manner. Under the existing provisions,
the eviction proceedings of unauthorised occupants from "public premises" take around five to
seven weeks' time.
"It may take around four more weeks in case the unauthorised occupants file an appeal before
the District Court under the act. However, eviction proceedings take a much longer period than
the timeline prescribed in the act. Sometimes, it takes years to evict the unauthorised occupants,
especially, if the unauthorised occupant approaches higher courts," it added.
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/bill-to-evict-unauthorised-occupants-from-government-accommodations-passed/71160174
The government provides residential accommodation on a licence basis to its employees,
Members of Parliament and other dignitaries while they are in service or till the term of their
office.
________________________________________________________________
Indore civic body to approve building plans online
Making it a truly self-service service initiative unlike the previous one, Indore Municipal
Corporation (IMC) officials are gearing up to use new software for automated building
plan approvals.
No need to run from pillar to post, Indoreans can now get building permission by applying
online from the comfort of their drawing rooms.
Making it a truly self-service initiative unlike the previous one, Indore Municipal
Corporation (IMC) officials are gearing up to use new software for automated building plan
approvals.
―The new software would allow citizens to apply for building permission on their own. They
will only have to get map approved by a licenced architect,‖ said OP Goyal, a senior official
with IMC‘s building permission cell adding that the process in previous software was complex
and citizens often required help from expert and had to make rounds of IMC office seeking
assistance.
The previous software — Automated Building Permission Approval System-I — was operated
by a Pune-based firm.
―A new agency has been entrusted to run the new automated building permission system called
ABPAS-II for building plan approvals from October 1,‖ the official said.
State urban administration and development department on Monday launched a training session
in Indore for licenced architects, engineers and civic body‘s building permission cell employees
to teach facets of the new software.
IMC officials said that second version of an automated building permission approval system
(ABPAS) is going to be launched by government, which would do away with manual
intervention in building permission related tasks.
IMC‘s building permission cell on an average gets 6000 applications a month. In past one year,
around 4000 permissions could be issued by civic body.
As many as 44 people including IMC‘s building officers, building inspectors, sub engineers,
building clerks, licence holder architects and engineers participated in the training session,
which would conclude on Tuesday.
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/indore-civic-body-to-approve-building-plans-online/71168190
Jaipur urban & housing department amends building laws to boost
real estate
The move aims to provide approval of layout plan with three days that would encourage
the developers and revive the real estate market.
The urban development and housing (UDH) department on Monday amended the integrated
building bylaws after issuing a notification.
The move aims to provide approval of layout plan with three days that would encourage the
developers and revive the real estate market.
Online approval of building layout plans was initiated in many urban local bodies and
development authorities from May 1 this year. As per the existing system, it is mandatory for all
the civic bodies to approve the layout plans within a month. However, it is alleged that the
officials do not clear the maps.
After amendments, the developer will now receive the approval for building plans within three
days. Under the fast-track system, the applicant will have to upload all the required documents
including those stating clear title of the land, no dues etc.
In case the building‘s height is more than 15 metre, developers will have to submit mandatory
permissions such as no objection certificate ‗NoC‘ from fire department and Airports Authority
of India (AAI).
―Once the process is completed, the local body will issue a demand note mentioning the amount
that a developer has to deposit. The approval will be given within three days after depositing the
money,‖ said an official.
The fast track approval system will be optional and developer and investors will have a choice
to opt for offline process.
Explaining the category of investors who can apply for fast-track system, an official added,
―The investors who have purchased a plot of 2,000 square metre in an auction by any urban
body can apply for fast track approval. Similarly, a developer who converted a group housing
scheme (10,000 sq mt) from agriculture to residential can opt for approval. All the hotel, motel
and resort owners can also take advantage of this system,‖ he said.
To ensure that developers are adhering to the approved layout plan, the UDH has also made a
provision. ―After the construction of a building reaches plinth level, the developers have to
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/jaipur-urban-housing-department-amends-building-laws-to-boost-real-estate/71165618
apply for certification from the department officials. The report of the construction will also be
uploaded online,‖ said an official.
The UDH department has decided to provide houses to destitute and landless single women in
every scheme. The department will reserve 10% houses in schemes under this category. Also,
following the centre, the state housing department also raised the annual income bar for EWS,
LIG, MIG and HIG categories.
________________________________________________________________
Telangana government to link PMAY-U under 2BHK scheme
Out of the unit cost of Rs 5.30 lakh, an amount of Rs 1.50 lakh will be sourced from funds
to be received from the government of India under PMAY-U and the balance amount of
Rs 3.80 lakh from the state government budget.
The Telangana government has decided to dovetail the Pradhan Mantri Awas Yojana-Urban
(PMAY-U) under the 2BHK scheme with the two-bedroom scheme of the state government.
Out of the unit cost of Rs 5.30 lakh, an amount of Rs 1.50 lakh will be sourced from funds to be
received from the government of India under PMAY-U and the balance amount of Rs 3.80 lakh
from the state government budget.
―The government is looking at synergy in the housing scheme,‖ officials said. The budget
outcome for the housing department for 2019-20 introduced in the assembly on Monday said
the government was targeting to complete 1,54,308 houses with a budget provision of Rs
108.18 crore.
In the current financial year, it has been decided to complete 20,213 houses, including those
sanctioned earlier under the two-bedroom housing programme in rural areas, at a budget
provision of Rs 100 crore. The state will raise loans from Hudco and other financial institutions
to meet the expenditure.
AIMIM legislator Syed Ahmed Pasha said that though one lakh houses were earmarked under
the double-bedroom scheme in GHMC area, only 128 houses had been completed.
He urged the government to see that GHMC area gets the required number of units. TRS
member Balka Suman said that CM K Chandrasekhar Rao is looking at a permanent solution to
those who lack houses.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/telangana-government-to-link-pmay-u-under-2bhk-scheme/71160107
DHFL's resolution plan hits roadblock
The process has been further complicated as certain bondholders have also initiated a
process to take DHFL to bankruptcy court, the custodian added.
A plan to rescue India's debt-laden Dewan Housing Finance Corporation Ltd (DHFL) has hit a
major roadblock as only a small segment of bondholders has agreed to be on board the proposed
resolution, according to a custodian of DHFL bonds.
The process has been further complicated as certain bondholders have also initiated a process to
take DHFL to bankruptcy court, the custodian added.
Out of the 87,000 debenture holders who had been asked to be party to the resolution plan being
deliberated upon by banks, only 24,400 debenture holders, or less than 30%, had responded
before the due date earlier this month.
The banks have signed an inter-creditor agreement (ICA) to come up with a plan to restructure
nearly 1 trillion rupees ($14 billion) of DHFL's debt. They had been trying to get bondholders
on board as well for the plan to succeed.
Under new central bank rules for resolving bad debts, it is mandatory for 75% of lenders by
value and 60% by number to sign the ICA to execute a revival plan which in DHFL's case can
be achieved only with the support of bondholders.
Banks, with an exposure of just about 360 billion rupees, will need support from insurance
companies, pension funds and other institutional investors to approve the resolution plan, the
deadline for which ends on Sept. 25.
DHFL, one of the largest housing finance companies in India ran into trouble last year soon
after the collapse of IL&FS, a shadow banking behemoth. Troubles at both lenders have
sparked an acute liquidity crunch which may worsen.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 18, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfls-resolution-plan-hits-roadblock/71176881
Pending home loan? You can still sell your flat!
One can sell a property after getting the consent or in-principal approval from the lender.
In 2017, Dinesh Sharma bought a 2BHK flat. He decided to sell his property in 2019 as he
wanted to buy a 3BHK unit in a project near his office. He has an outstanding home loan on his
current property and the original property papers are with the bank.
Can Sharma sell this property while the home loan is still pending?
Yes, a person who has availed a home loan on a property can transact the said property.
However, the sale transaction stipulates obtaining an NOC from the lender or an in-principle
approval from the lender for such sale transaction.
How to sell when loan is outstanding?
One can sell a property after getting the consent or in-principal approval from the lender. ―This
has to be done in a manner that part of the sale consideration will be paid directly to the lender
or lending bank and the remaining balance (if any) shall go to the seller/current owner.
Upon receipt of the total loan consideration, the lender will release the original title deed of the
property, deposited with the lending bank at the time of disbursement of the loan, to the
seller/current owner. Generally, release of original title deed by the lender/lending bank,
registration of the sale deed and discharge of the sale consideration takes place simultaneously,‖
explains Niraj Kumar, partner, DSK Legal.
What should a buyer/seller check?
One buys a mortgaged property if he is getting a better deal in terms of price or if he likes the
location or if he is getting a fully-furnished flat at no extra cost.
―It is advisable that the buyer (an individual or a legal entity) should check the original title
documents of the property, the mutation records, encumbrance certificate and do litigation
search on the property to verify whether the possession is in favour of the current owner,‖
explains Kumar.
Kumar further adds ―The seller should also look into documents that verify the capability of a
buyer to transact the property and availability as well as source of funds being used for the
purchase of the property.‖
Under construction property
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/pending-home-loan-you-can-still-sell-your-flat/71166149
When someone buys an under construction property, he has to pay a booking amount to the
builder and then apply for a home loan. The bank assesses the documents on the basis of
income and repayment capacity of the customer and then sanctions the loan. Once the
registration of a property is complete, the original papers are submitted in the bank and only
after the final payment of the home loan are these released and handed over to the property
owner.
One can sell a property only in two cases while the home loan is pending - 1. He receives
consideration from the prospective buyer and then pays off the dues to the bank. After obtaining
the original property papers from the bank he completes the sale with the buyer. 2. He transfers
the pending loan to the new buyer, after getting what he has already paid and any extra amount
as per his deal with the buyer. However, the bank will do its due diligence before approving this
transfer. The bank will check the income of the new buyer and do the complete KYC before
approving it.
―One can sell his property on which loan is pending but it is important that you clear your
pending dues with the bank. After you have paid back fully, you can get your original property
documents and sell your property. Simultaneously, the current owner can negotiate with the
buyer and bank and clear the dues to continue the sale,‖ says AK Bansal, former executive
director, Indian Overseas Bank.
Consider Tax Liability
Apart from considering the property specifications, one of the most important factors to
consider is the tax liability. Before you sell a property you need to calculate your tax liability as
well.
Nand Kishore, Partner – DSK Legal, suggests, ―The tax liability for selling any property gives
rise to capital gains tax, which could be either short term or long-term gain under the Income
Tax Act 1961. However, the tax impact can be mitigated if the seller utilises the capital gains
for purchasing another residential property within two years or construct a house within three
years from the date of sale.
If the seller is unable to utilise the entire amount within the last date for filing returns, then such
unutilised amount should be deposited with a specified bank account. The said unutilised
amount can be used only to purchase a residential house or for the construction of a house.‖
You must look into various factors before selling your property on which a home loan is
pending.
______________________________________________________________
UP-RERA identifies over 40 realtors duping home buyers
According to officials, they had received 17 complaints wherein the promoters provided
fake registration numbers of UPRERA to gullible homebuyers.
Planning to buy a house? Cross check every document to be doubly sure as Uttar Pradesh Real
Estate Regulatory Authority (UPRERA) has identified 43 private builders who were duping
homebuyers in the city.
According to officials, they had received 17 complaints wherein the promoters provided fake
registration numbers of UPRERA to gullible homebuyers.
Investigations found there were 43 such builders, who were constructing housing projects in
prominent areas of the stat capital like Gomtinagar Extension, Jankipuram Extension, Kanpur
Road, Matiyari and Sitapur Road.
UPRERA secretary, Abrar Ahmed, said, ―We have found 43 projects, which are not registered
with us, but builders printed fake registration numbers in their pamphlets and on websites. We
are identifying more such housing projects and will lodge FIRs against them soon.‖
According to UPRERA norms, every builder must get the project map approved from LDA and
take a no-objection certificate (NOC) from the fire department.
Builders also have to take nod of Lesa. Thereafter, the promoter has to submit all the documents
to the regulatory authority, which verifies them before registering the project and issues a
registration number to the builder.
However, many private builders do not take permission from the authority as they have to
submit the progress report every three months.
If the progress is slower than the time-limit given by the promoters, they are liable to a penalty,
officials said.
______________________________________________________________
Newspaper/Online ET Realty (online)
Date September 18, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-identifies-over-40-realtors-duping-home-buyers/71176899
Maharashtra government ends ownership of ULC surplus lands
The decision has been taken as per orders of Supreme Court and recommendation of two-
member committee of BN Shreekrishna and BN Makhija.
The state government has ended its ownership of land declared surplus under the Urban Land
Ceiling (ULC) Act. This will come as a major relief for owners of lands, plots and tenements
that have come up on such surplus land.
The state‘s urban development department on Monday issued a notification directing collectors
and competent authority of ULC departments of all districts in the state to delete the name of
state government from ownership documents of surplus land and replace it with ―surplus area
under ULC section 20‖.
The decision has been taken as per orders of Supreme Court and recommendation of two-
member committee of BN Shreekrishna and BN Makhija.
Under ULC Act, the government used to declare surplus land as government owned. Under
Talegaon Dabhade Scheme, the government used to allot surplus land back to owners for
developing residential, industrial schemes etc with some conditions.
A certain percentage of land, varying from 10-20%, was to come under the possession of
government. The remaining area was to be in the name of land owners, who were supposed to
transfer ownership to owners of plots or tenements. But the government registered its name in
the ownership records on such surplus lands.
The government is also likely to exempt owners of lands from developing approved schemes
under Talegaon Dabhade Scheme, and handing over certain share to it by taking premium.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-government-ends-ownership-of-ulc-surplus-lands/71164174
Onus on residents to prove deficiency in service: Consumer forum
Meanwhile, advocate AD Benny, an activist, said that such a case will not stand in
consumer forum if residents were willing to take a risk, by purchasing the flat, after
knowing that the matter was a sub judice.
Consumer forum officials and consumer rights activists said that Maradu flat residents still have
the option to approach the forum if they feel that the builders violated their rights as consumers.
They said that residents can file a complaint stating that the builder is responsible for the
deficiency in the promised service and have engaged in unfair trade practices against the law if
they can prove that they were unaware of the legal hiccups at the time of flat purchase and that
the builders did not disclose details of the case.
―In this case, flat owners are consumers who paid a huge amount to builders in return for the
flats they sold. Hence, consumer protection laws are applicable. Consumers can take advantage
of the provision under Section 12 (1) (b) of Consumer Protection Act, 1986, which allows a
voluntary consumer association (VCA) to file a case on behalf of one or more consumers
against the builder. If they could prove their claims, compensation can be availed from the
builders. Though many owners claimed that they were unaware of the CRZ violation case in
Supreme Court, none of them have approached us,‖ said consumer forum President Cherian K
Kuriakose.
Meanwhile, advocate AD Benny, an activist, said that such a case will not stand in consumer
forum if residents were willing to take a risk, by purchasing the flat, after knowing that the
matter was a sub judice.
―Consumers are bound to reasonably examine products or services before purchase. Builders
can easily challenge the claim of flat owners that they were oblivious to the legal issues,‖ he
said.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/onus-on-residents-to-prove-deficiency-in-service-consumer-forum/71165957
Sunteck Realty, Transcon ink development pact for seven-acre plot
in Mumbai's Andheri
While approvals and clearances will be Transcon Developers’ responsibility, Sunteck
Realty will handle construction, execution, sales and marketing of the project.
Realty developer Sunteck Realty has entered into an alliance with Transcon Developers to
jointly develop a nearly 7-acre land parcel Off New Link Road close to Lokhandwala Complex
in Mumbai‘s Andheri suburb.
As per the joint development agreement (JDA) terms, Sunteck Realty and Transcon Developers
will be sharing the project‘s revenue, estimated to be around Rs 2,500 crore to Rs 3,000 crore
based on the ongoing property rates in the vicinity, in 54% and 46% proportion, respectively.
The plot has total development potential of around 1.1 million sq ft and both the developers are
planning to build a mixed-use project including three residential towers and some part of this as
commercial and retail component. The entire development is expected to be completed over the
next 4-5 years.
―During a time of consolidation in the industry, this acquisition gives us a significant edge by
expanding our portfolio and footprint in the Mumbai Metropolitan Region (MMR). This project
will further strengthen the cash flow and balance sheet of the company,‖ said Kamal Khetan,
CMD, Sunteck Realty while confirming the transaction.
While approvals and clearances will be Transcon Developers‘ responsibility, Sunteck Realty
will handle construction, execution, sales and marketing of the project.
The project is located between the two major connectivity nodes of New link Road and Veera
Desai Road and has proximity to localities like Versova and Juhu.
―Transcon has a large master development portfolio, where we partner with credible branded
developers for our land bank. Our first phase here, ‗Transcon Triumph‘ is a boutique luxury
project that has attracted many celebrity buyers and is close to getting its Occupation
Certificate. For the second phase, we are working on a partnership with Sunteck,‖ said Kirti
Kedia, CMD, Transcon Developers.
Transcon is already developing a 38-storey premium residential tower adjacent to the said plot
and the project, given its location has already attracted high-profile celebrities as its
homebuyers. However, this nearly completed residential tower will not be part of the new joint
development agreement between both the developers. Sunteck is planning to offer configuration
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/sunteck-realty-transcon-ink-development-pact-for-seven-acre-plot-in-mumbais-andheri/71170707
of 3-bedrooms and more priced above Rs 3 crore at this proposed new project.
Transcon is also jointly developing projects with Rustomjee Group at Thane and Sheth Creators
at Malad.
Policy level changes in recent years, including the implementation of Real Estate (Regulation &
Development) Act, 2016, the Goods & Services Tax India and demonetisation have resulted in
consolidation in the real estate sector. Several developers across markets are now looking for
stronger players to associate with through joint developments, joint ventures or even exiting a
few projects completely.
Earlier, developers preferred to invest in the creation of a land bank and sought low-cost land
parcels in upcoming areas for later development. With the evolving operational environment
under the RERA and GST regimes, developers have been relooking at the business model.
________________________________________________________________