08-August-2019 - Credai Bengalcredaibengal.in/wp-content/uploads/2019/08/08Aug19-CB...2019/08/08 · Retail and warehousing and logistics sectors attracted 12.1% and 7.9% share, respectively,

08-August-2019

Page 2 of 48

CREDAI Bengal Daily News Update | 08.08.19

WEST BENGAL NEWS

Kolkata Port Trust repossesses 43 lakh sq ft plot from Metal Box India

The plot was in the possession of Metal Box India Ltd for which rent is due since 1985.

Following a prolonged legal battle, the Kolkata Port Trust (KoPT) finally succeeded in getting back

possession of a plot measuring nearly 40,476.90 square metres at the Hide Road Extension near

Taratala on Tuesday.

The plot was in the possession of Metal Box India Ltd for which rent is due since 1985.

―There was an eviction order in our favour under the Public Premises Act. This order dates back to

January 18, 2010. For over nine years now, we have been trying to get the illegal occupiers to move.

Metal Box India, to which the plot had been let out, owes us Rs 55 crore in rent since 1985. The

annual rent now is Rs 2.45 crore plus GST and KMC tax. Finally, our security personnel took

possession of the plot on Tuesday,‖ a senior KoPT official said.

Over the last few years, KoPT has started a drive to take possession of disputed plots. In most cases,

the original lessees sub-let the plots without the knowledge of KoPT.

These illegal occupants fail in their rent payment but continue to hold on to the plots well after expiry

of the lease period, forcing KoPT to take legal steps. Since July, courts have ruled in the KoPT‘s

favour for eviction of several such occupants of warehouses along the Strand Road.

According to another KoPT official, the commercial land owned and let out by the port is prime in

nature. It is illegal to allow such public land to be used by people who do not pay rent and have no

proper lease agreement.

Such illegal occupants also do not have proper safety measures resulting in fires and other accidents.

The port has now realised that if these plots are let out at market rates, it would pay a large part of

KoPT‘s expenses, particularly the huge pension fund.

―We are now taking up the matter very seriously. This should be a lesson to others that we won‘t

allow any plot to be occupied illegally,‖ KoPT chairman Vinit Kumar said.

Newspaper/Online ET Realty (online)

Date August 07, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/kolkata-port-trust-repossesses-43-lakh-sq-ft-plot-from-metal-box-india/70571536

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OTHER NEWS

NHB's move to ban subvention scheme must be withdrawn: CREDAI

CREDAI President Satish Magar demanded that interest rate on home loan be brought down to

7.5 per cent to boost housing demand.

The National Housing Bank's (NHB) decision to ban lending by housing finance companies under

subvention scheme was "impulsive" and should be rolled back to boost sales, realtors'

body CREDAIChairman Jaxay Shah said here on Wednesday.

CREDAI President Satish Magardemanded that interest rate on home loan be brought down to 7.5 per

cent to boost housing demand. The additional deduction of Rs 1.5 lakh on home loan interest,

announced in the Budget, should be provided to all borrowers without any cap of Rs 45 lakh

apartment price.

Last month, the NHB asked housing finance companies (HFCs) to "desist" from offering loans under

subvention scheme, wherein real estate developers pay home loan interest on behalf of homebuyers

for a certain period.

The direction was issued by the NHB in view of several complaints of frauds allegedly committed by

certain builders using subvention schemes.

"The restriction on subvention scheme was an impulsive decision of the government," Shah said here

at CREDAI's national conference NATCON here.

He termed the decision as "immature" and said it was taken without any consultations with

stakeholders.

Shah demanded that the restriction on this scheme be withdrawn as it was for the benefit of

homebuyers.

On NHB's concern over complaints under this scheme, he said there should be proper monitoring and

regulations of loans disbursed under this scheme.

With multi-year slowdown in housing demand, real estate developers and banks introduced the

subvention scheme to boost sales of apartments. Homebuyers did not have to bear house rent and

interest on home loan because of this scheme.

On challenges faced by the sector, CREDAI Secretary Pankaj Goel said the liquidity crunch is the



Link https://realty.economictimes.indiatimes.com/news/industry/nhbs-move-to-ban-subvention-scheme-must-be-withdrawn-credai/70580306

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main issue at this point, with banks and non-banking financial companies (NBFCs) not lending to

developers.

He said the real estate regulators established under RERA should be the first point for redressal of

homebuyers' grievances.

Real estate regulators could refer the matter to the National Company Law Tribunal (NCLT) for

insolvency process or any courts, if matters remain unresolved, Goel said.

In its circular, NHB had said, "Based on a review of the matter, HFCs are advised to desist from

offering loan products involving servicing of the loan dues by builders/developers etc. on behalf of the

borrowers."

It had clarified that the stipulation related to subvention scheme would also be effected in cases

wherein the HFC is yet to commence disbursements under the sanctioned case.

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RBI unveils measures to boost confidence in NBFCs

First, it has brought the single-borrower exposure limit for bank lending to NBFCs to 20% of

the lender’s capital as compared to 15% earlier.

In its monetary policy, the RBI has gone all out to revive confidence in well-functioning entities in the

non-banking finance company (NBFC) sector.

First, it has brought the single-borrower exposure limit for bank lending to NBFCs to 20% of the

lender‘s capital as compared to 15% earlier. Second, it will recognise bank lending to registered

NBFCs for selected purposes as priority sector lending.

These segments include NBFCs that lend for investment credit in agriculture up to Rs 10 lakh, or

micro, small and medium enterprises (MSMEs) up to Rs 20 lakh, and housing up to Rs 20 lakh per

borrower. At present, bank loans to NBFCs for housing is reckoned as priority sector, but only for

loans up to Rs 10 lakh.

―The increase in the on-lending cap for priority sector advances for home loans from Rs 10-lakh loan

ticket to Rs 20-lakh ticket will encourage banks to lend more to housing finance companies (HFCs).

This will further boost lending by HFCs in the affordable housing segment,‖ said LIC Housing

Finance MD & CEO Siddhartha Mohanty.

―Permitting banks to on-lend through NBFCs for priority sector lending would make this transmission

faster and more efficient. This also would significantly improve the MSME functioning in the current

environment and ultimately contribute to faster growth of the economy,‖ said Shriram Transport

Finance MD & CEO Umesh Revankar. He said that the move was timely as the overall demand picks

up after the festival of Ganesh Chaturthi, which falls in September.

A statement by RBI governor Shaktikanta Das that the central bank will endeavour to ensure that none

of the systemically important NBFCs fail has also inspired confidence in the market.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/rbi-unveils-measures-to-boost-confidence-in-nbfcs/70580196

Page 6 of 48

Private equity inflows in realty rise 10% on thriving commercial

segment

Private equity firms have invested over $4.2 billion into the Indian realty market, up 10% from

a year ago.

Driven by the investment appetite for commercial properties, private equity inflows into Indian real

estate sector have been strengthening, mainly because of foreign funds‘ direct exposure and platform

alliances.

Private equity firms have invested over $4.2 billion into the Indian realty market, up 10% from a year

ago. But investments in the second quarter saw a 34.4% sequential decline, revealed data from

Cushman & Wakefield. Non-banking finance companies‘ (NBFC) lending activity coming to a halt

with a dearth of refinance available for residential segment contributed to the deceleration in the

quarterly fund flows.

―We expect that the activity in the commercial sector, primarily office, to continue strongly, with

retail platforms and acquisitions of key retail developments also on the cards. Warehousing/logistics is

likely to find strong investor support through existing dry powder and plans are being firmed up by

global players,‖ said Anshul Jain, country head & managing director, Cushman and Wakefield India.

He expects the residential segment to face further strife as NBFCs grapple with liquidity woes and

expects consolidation among developers and NBFCs.

In fact, investments in the residential segment during the first half of 2019 were the second lowest in

the past five years since 2015, standing at just Rs 5,610 crore.

The office segment remains a hot investment target, garnering Rs 6,280 crore from institutional

investors, accounting for 54.1% share of the total investments in the second half of 2019. The

investments were higher by almost 37% in the first half of 2019, compared with the same period last

year.

―In terms of enquiries and interest for deal making and fund infusion, the commercial segment

continues to attract robust attention. While rental housing and coliving are also finding a mention in

probable investment discussions, warehousing and logistics are proving to be a major pull for

investors,‖ said Subhash Udhwani, founder of real estate-focused boutique investment bank Elysium

Capital.

Strong office demand, low vacancies and rising rents continue to keep the momentum going in private



Link https://realty.economictimes.indiatimes.com/news/commercial/private-equity-inflows-in-realty-rise-10-on-thriving-commercial-segment/70580377

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equity activity. The success of the Blackstone-Embassy REIT has also infused momentum in the

commercial office investment space with key learning for institutional investors around portfolio

creation, management and returns.

Retail and warehousing and logistics sectors attracted 12.1% and 7.9% share, respectively, in the 2019

second quarter fund flow. Half yearly investments in both these asset classes strengthened with a

growth of 21% and 62% on yearon-year basis, respectively. ADIAbacked Lake Shore India Advisory

invested ?1,400 crore in an ongoing retail project in Gurugram in a key deal in the retail asset class

during the second quarter.

At a city level, Mumbai attracted the highest investment inflows at Rs 6,100 crore with a 52.6% share

of the fund flows during the quarter. This was followed by Pune and Delhi NCR attracting 12.5% and

12.1% of the funds, respectively. Multi-city investments, all of which were in the office sector,

constituted 15.0% of the quarterly fund flows.

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Before bank merger, expect 15-20% book growth as an HFC: Gagan

Banga, Indiabulls Housing

Since we announced our merger in April this year, we have been focusing on making sure that

impediments to the bank merger are done away with.

Through a large part of Q2, we would continue to remain focussed on reducing our commercial real

estate exposure, says Gagan Banga, VC & MD, Indiabulls Housing Finance. Excerpts from an

interview with ETNOW.

Overall it has been a tepid quarter for Indiabulls. Both profits and net interest incomes saw

degrowth in this quarter. What has led to the decline in profits?

Since we announced our merger in April this year, we have been focusing on making sure that

impediments to the bank merger are done away with. We have been focused on reducing our

commercial real estate books. Over the course of the last quarter, we have bought it down by over Rs

6,000 crore just by refinance etc.

Regular amortisations have happened on the side. Given that we have disbursed over Rs 7,500 crore,

the overall book has come down because the repayments of home loans and LAP have also been

pretty strong. The company is essentially following a philosophy where over the short term, we want

to continue to reduce commercial real estate exposure, focus on bank merger, preserve liquidity and

remain extremely strong on capital adequacy.

Our liquidity has actually gone to very high levels and today over 29% of our borrowings are covered

by our cash and liquid investments of about Rs 28,000 crore. That will generally be the theme of the

quarter and through quarter one, we are focussed on this. Through a large part of Q2, we would

continue to remain focussed on reducing our commercial real estate exposure.

Coming to the asset quality, gross NPAs were up 56% quarter on quarter. What led to the

decline in asset quality?

We were fortunate to have a large recovery last quarter and in continuation with our policy of creating

provisions, we have tried to accelerate some loans which could have otherwise continue to remain as

part of our stage 2 assets and created provisions around that. All or most of the increase in the gross

NPA can be attributed to the fact that we have chosen to utilise the provision release that we got out of

the large recovery that we did from the sale of Palais Royale.

There is also a marginal impact coming from the fact that same time last year our base was almost Rs

10,000 crore higher. So, it is partially an outcome of a lower base and also our desire to not bump up



Link https://realty.economictimes.indiatimes.com/news/allied-industries/before-bank-merger-expect-15-20-book-growth-as-an-hfc-gagan-banga-indiabulls-housing/70580347

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profits because of the provision release.

In our recent media interactions, we have been talking about the Rs 4,000-5,000 crore buffers that we

carry and we would want to use that towards provisions rather than increasing our profitability in the

short term. We believe that kind of a buffer is a huge strength of the company and the recovery that

we did last quarter has just demonstrated the strength.

So which are the segments which are showing higher signs of stress and what is your outlook

going forward on the asset quality trends for the coming quarters?

Gross NPLs will stay in the range of 1.5% or so. We would continue to use the buffers if required, to

make higher provisions. Overall, the bulk of the book continues to perform well and we are being

proactive in recognising stress in the construction finance or any such space. I would not say that there

is any alarm bell ticking there. 1% to 1.5% kind of gross NPLs given the environment in which we are

operating, are actually healthy figures.

At what stage is your merger with Lakshmi Vilas Bank and what all documentations are still

required?

Following our announcement in April, in early May we approached all the various regulatory bodies

through which we need to get an approval -- the Reserve Bank of India, the Competition Commission,

stock exchanges, SEBI, National Housing Bank, etc. We have already received the Competition

Commission approval. We are awaiting the other approvals.

The Reserve Bank of India approval is actually the most critical approval following which the other

approvals will potentially follow as an outcome of NCLT. So NCLT will call out to shareholders. We

are engaged with the Reserve Bank. It will be inappropriate for me to be talking about the exact

exchange. I am optimistic that over the next 45 to 60 days we will hear back from the central bank.

Margins they continue to remain under pressure given that the environment is slightly tough

right now for NBFCs and HFCs. Where do you see your margins stabilising?

For a while, we have been talking about margins in the range of 3-3.25%. As our commercial real

estate book (a higher yielding book) declines, the spreads come down a little bit. But that is now

starting to get compensated by our enhanced focus on SME lending. I am still quite confident that we

will stay in the range of 3 to 3.25%. We ended last quarter at 3.14%.

You have also continued to reduce your exposure to CPs. Given the current scenario, how do

you see your borrowing mix shaping up for the next one to two years?

At this point in time, we are more focussed on the bank merger and therefore putting all our energies

behind that. It is resulting in the real estate book coming off which itself is resulting in a fair degree of

liquidity. From that perspective, we will be doing opportunistic borrowing but a large part of our fund

requirement would be generated internally by portfolios running down.

We did a $350-million bond offering last quarter after achieving a BB plus rating on an international

level. Those kind of opportunistic borrowings will continue to be done. Our cash levels are extremely

high and rather than doing very high cost borrowings, I would rather continue to use internal accruals

to raise whatever liquidity is required for our disbursements.

How do you see the disbursements panning out, what will be the focus area then?

Page 10 of 48

This quarter on a gross basis, we will be looking forward to do about Rs 10,000 crore of

disbursements as against Rs 7,500 crore of disbursements that we have done in Q1 and Q4. That

number will continue to increase through Q3 and Q4. A large part of that disbursement will be

towards the SME segment and whatever our partially disbursed cases are, we will continue to do that

and make sure that our projects continue to do well. All in all, in Q2, we will look at disbursals of

about Rs 10,000 crore.

Business has slowed in the quarter and loan assets have seen a de-growth of about 10%. What is

your outlook on loan growth for the entire fiscal?

We are still quite confident that a large part of our commercial real estate realignment is already

behind us. It need not continue at the same pace. We did a large securitisation transaction in Q3 while

Q4 and Q1 this year were about focussing on reducing the commercial real estate book both from a

risk management as well as a bank merger perspective.

After this quarter we will be at a steady run rate of Rs 2,000-3,000 crore decline in commercial real

estate and our focus on SME has increased. As far as the second half of the year is concerned, I am

still looking at fairly healthy loan book growth. For the year, I am quite confident that as a housing

finance company prior to the bank merger, our book growth should be in 15-20% range.

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Page 11 of 48

Homebuyers can file claim even after resolution plan is passed: NCLT

The Regulation No. 12 (2) of IBBI (CIRP) Regulations, 2016, provides a time limit of 90 days

from the CIRP Commencement date to submit the claims.

In a landmark judgement, National Company Law Tribunal (NCLT) has allowed submission of claims

by home buyers even though the time period for submission has elapsed and resolution plan for an

insolvent company has been approved by the committee of creditors (CoC).

The court gave the order in a case related to Appu Ghar Retail, a project which was being developed

by International Recreation & Amusement in Sector 29, Gurugram. However, Corporate Insolvency

Resolution Process (CIRP) was initiated against the company in August 2018 and Pramod Kumar

Sharma was appointed as the Resolution Professional (RP).

As per regulations, last date for submission of claims was November 11, 2018. The claims were

however accepted till April 25, 2019. The CoC approved the resolution plan, which was filed

by HGAS Apex JV, on May 22, 2019.

"Many allottees of the real estate project missed the time line because they were unaware of the

initiation of CIRP," said Sowmya Saikumar, advocate representing a home buyer.

However when they reached the RP, it rejected the claims saying that final revised/amended plan has

already been obtained from the resolution applicants and in order to provide crystallised information

of liability to resolution applicants, the claims cannot be accepted.

One of the home buyers filed a plea in NCLT pleading that their claims be accepted. On hearing the

matter, NCLT directed the RP to accept the claims.

"It is a respite to allottees of real estate projects who miss timelines because of being unaware of the

initiation of insolvency process. Now their claims can be accepted even at a belated stage i.e. even

after a resolution plan has been approved by CoC and pending adjudication before NCLT," said

Saikumar.

The Regulation No. 12 (2) of IBBI (CIRP) Regulations, 2016, provides a time limit of 90 days

from the CIRP Commencement date to submit the claims.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/homebuyers-can-file-claim-even-after-resolution-plan-is-passed-nclt/70575046

Page 12 of 48

Grexter Living acquires i2Stay

With this, it has added 2,000 new beds to its inventory, taking its total count of beds to over

5,000 beds in Bengaluru.

Grexter Living, a co-living provider, has acquired i2Stay. The company said that it‘s a combination

of cash and equity deal but declined to divulge further details.

Post the acquisition, Rajasekhar Gowreneni, CEO of i2stay, will join Grexter Living as the managing

partner for South India.

With this, it has added 2,000 new beds to its inventory, taking its total count of beds to over 5,000

beds in Bengaluru.

It has also taken over some built-to-suit projects which i2stay has been working on.

The company aims to foray into Pune and Hyderabad by 2020.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/grexter-living-acqui-hires-i2stay/70569916

Page 13 of 48

Bihar government allows registration of flat even if project not

approved by RERA

However, any of the dwellings in that apartment had to be registered with excise, prohibition

and registration department till August 30, 2018.

The state cabinet on Tuesday approved the Bihar Registration (Amendment) Rules 2019, which

allows registration of flats even if the project was not registered with Real

Estate Regulatory Authority (RERA), Bihar but any of the dwellings in that apartment had been

registered with excise, prohibition and registration department till August 30, 2018.

Principal secretary in the cabinet secretariat department, Sanjay Kumar, said the cabinet cleared total

27 proposals, including sanctioning Rs 600 crore for flood rehabilitation works. More than 88 lakh

people in 13 districts were affected by the floods due to torrential rainfall in the catchment areas of

rivers flowing from Nepal to Bihar between July 10 and 14.

Sanjay, who is also the principal secretary of health department, said the cabinet also approved a

health department proposal to give handloom cloths to the patients admitted in government medical

college and hospitals. ―Such clothes to the patients will ensure better infection management in

government hospitals,‖ he said.

In another important decision, the state cabinet approved a proposal for extending subsidy to the tune

of Rs 70,000 to people from economically weaker sections (EWS) for purchasing e-rickshaws.

Sources said five families in every panchayat can be provided with the subsidy and the government

will spend Rs 300 crore on this head.

In another decision, the cabinet gave its nod to online application for ‗choice‘ vehicle registration

numbers. Vehicle owners will now be able to apply for choice registration numbers through the

website of transport department by paying an amount in the range of Rs 15,000 to 1 lakh.

―The transport department has identified 641 such fancy numbers. Additional Rs 10,000 will be

required to be paid in case of registration numbers required beyond the list,‖ Sanjay said.

The state cabinet also sanctioned a proposal to increase the annual uniform allowance for group-D

employees attached with judges. The state government has increased the amount from Rs 5,000 to Rs

10,000.



Link https://realty.economictimes.indiatimes.com/news/regulatory/bihar-government-allows-registration-of-flat-even-if-project-not-approved-by-rera/70568816

Page 14 of 48

Sebi mulls tighter norms to ensure full disclosure on loan defaults with

rating agencies

The proposal is likely to be presented for approval by Sebi's board at its meeting later this

month, the officials said.

Amid concerns over banks citing 'client confidentiality' to resist sharing of information on delayed

loan repayments and possible defaults by their borrowers, capital market regulator Sebi is planning to

tighten its norms to make it mandatory for companies to provide these details to credit rating

agencies.

Amid numerous cases of huge loan defaults by corporates, including in cases like Infrastructure

Leasing and Financial Services Ltd (IL&FS), credit rating agencies have also come under the scanner

for failing to flag potential credit risks of the securities and entities rated by them.

However, the rating agencies have often sought to shift the blame to the companies and lenders by

claiming that they find it difficult to get information about delay in meeting bank obligations and

payment failures which are considered early indicators of a default.

Officials said there have been occasions when some entities have sought to take the benefit of

certain regulatory gaps as banks are regulated by the Reserve Bank of India (RBI) while rating

agencies and listed companies come under Sebi's jurisdiction, while the problem becomes more acute

in case of unlisted companies.

To fill this regulatory gap, Sebi is now proposing to amend its regulations for credit rating agencies to

ensure that any listed or unlisted entity, before getting rated, gives an explicit consent to obtain from

their lenders and other entities full details about their existing and future borrowings as also their

repayment and delay or default of any nature and provide the same to the rating agencies.

The proposal is likely to be presented for approval by Sebi's board at its meeting later this month, the

officials said.

The move is aimed at helping the rating agencies get timely information about the rated entity's

financial strength and incorporate the impact of these details in their ratings.

The provisions of the rating agreement between a rating agency and its client or issuer of securities is

governed by the Sebi (Credit Rating Agencies) Regulations, framed in 1999.



Link https://realty.economictimes.indiatimes.com/news/regulatory/sebi-mulls-tighter-norms-to-ensure-full-disclosure-on-loan-defaults-with-rating-agencies/70569710

Page 15 of 48

This regulation provides that every rating agency needs to enter into a written agreement with each

client whose securities it proposes to rate and mentions detailed provisions that every such agreement

should include.

As per these regulations, rating agencies are required to continuously monitor the rating of securities

during the lifetime of such securities.

Sebi is of the view that any default or delay in meeting bank obligations are often early indicators of

default on other borrowing obligations of the issuer, an official said.

"However, banks have not been forthcoming in sharing such information with credit rating agencies

citing client confidentiality as a reason," the official added.

In order to address this issue, Sebi had earlier decided to mandate the rating agencies to incorporate an

enabling provision in the rating agreement with their clients.

The official said Sebi had also written to the RBI in May, apprising the banking regulator that the

rating agencies are contemplating incorporating such enabling provision in the rating agreement.

The RBI was also requested to advise banks to provide timely and accurate information to the credit

rating agencies regarding any default or delay in payments by the rated entities, but no response was

received in the matter till last month.

In view of this, Sebi is now proposing to amend its regulations for the rating agencies to insert a

clause requiring the clients to give an explicit consent for obtaining such details from their lenders and

other organisations holding information on their borrowings and provide the same to the raters.

____________________________________________________________________

Page 16 of 48

Courts must stop giving judgements based on public perceptions:

Avneesh Sood, Eros Group

The company claims that a PIL filed before the NGT has stalled its project, being developed in

collaborative agreement with Bharti Realty, worth Rs 4,000 crore.

Avneesh Sood, director of Eros Group, in a media release said that our courts must stop giving

judgements merely on public perceptions on the behest of so-called environmentalists.

"Stalling projects, with all legitimate permissions, will create not only a fear factor among the

business fraternity, but also discourage them to venture into new projects," Sood added.

According to Eros, a Public Interest Litigation (PIL) filed before the National Green Tribunal (NGT)

against a group housing project being developed Ajay Enterprise (AEPL), part of Eros, and Bharti

Realty has stalled the project.

The company claims that the project is worth Rs 4,000 crore.

AEPL was granted a license (No. 20 of 2013) by Director General, Town & Country Planning

(DGTCP) for a project to be developed on 52.825 acres in Sector 43, Faridabad, the company said in a

media release. AEPL had entered into a collaboration agreement with Bharti Realty.

However in March, 2019, the NGT passed an order declaring the project land to be a ―Deemed

Forest‖. AEPL challenged the order in Supreme Court where it said that there shall be no cancellation

of any permissions granted till the matter is heard.

"This clearly indicated that the order passed by NGT is wrong in the eyes of law," said Sood in the

media release.

According to Eros Group's media release, a letter was issued on November 8, 2006 by the Deputy

Conservator of Forest (Faridabad) to the DTCP wherein it is an uncontroverted fact that ―the subject

land is neither a protected, reserved, recorded or unclassified forest‖.

The company claims that Sector 43 has been categorized in the residential zone of Master Plan of

1982 onwards till date. Thus, the subject land cannot be classified to be as forest. The project land has

been a part of the residential zone as per the successive master plans issued since 1982 after due

process of law, said the company in its media release.



Link https://realty.economictimes.indiatimes.com/news/industry/courts-must-stop-giving-judgements-based-on-public-perceptions-avneesh-sood-eros-group/70572857

Page 17 of 48

Owner must act within 12 years or squatter will get rights: SC

As per the Limitation Act 1963, the statutory period of limitation that is allowed for possession

of immovable property or any interest is 12 years in the case of private property and 30 years

for public property, from the date the trespasser occupies the property.

If a rightful owner of an immovable property fails to take action to get back possession within the

limitation period then his rights are lost and person in possession acquires an absolute title,

the Supreme Court ruled on Wednesday, but held that no benefit of adverse possession should be

given to people who encroached upon public land.

As per the Limitation Act 1963, the statutory period of limitation that is allowed for possession of

immovable property or any interest is 12 years in the case of private property and 30 years for public

property, from the date the trespasser occupies the property.

Enumerating the provisions of the Act, a bench of Arun Mishra, S Abdul Nazeer and M R Shah said

the law provided shield to a person who is in possession of the property beyond 12 years and that

person can take action by filing a suit for restoration of possession in case of dispossession.

―We hold that a person in possession cannot be ousted by another person except by due procedure of

law and once 12 years' period of adverse possession is over, even owner's right to eject him is lost and

the possessory owner acquires right, title and interest possessed by the outgoing person/owner as the

case may be against whom he has prescribed. In our opinion, consequence is that once the right, title

or interest is acquired, it can be used as a sword by the plaintiff as well as a shield by the defendant

within ken of Article 65 of the Act and any person who has perfected title by way of adverse

possession, can file a suit for restoration of possession in case of dispossession,‖ the bench said.

It said that a person who has perfected his title by way of adverse possession can file a suit for

obtaining an injunction protecting possession and for recovery of possession in case his dispossession

by a third person or by owner after losing the title. ―In case a person in adverse possession has

perfected his title by adverse possession, after the extinguishment of the title of the true owner, he

cannot be successfully dispossessed by a true owner as the owner has lost his right, title and interest,‖

it said.

The bench said the right by adverse possession should not be applicable in case of encroachment of

public property. ―There are instances when such properties are encroached upon and then a plea of

adverse possession is raised. In such cases, on the land reserved for public utility, it is desirable that

rights should not accrue. The law of adverse possession may cause harsh consequences, hence, we are

constrained to observe that it would be advisable that concerning such properties dedicated to public



Link https://realty.economictimes.indiatimes.com/news/regulatory/owner-must-act-within-12-years-or-squatter-will-get-rights-sc/70580289

Page 18 of 48

cause, it is made clear in the statute of limitation that no rights can accrue by adverse possession,‖ the

court said.

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Page 19 of 48

NBCC tells Delhi HC its redevelopment projects to be role models

NBCC was responding to high court’s queries on the status of approvals for the Nauroji Nagar

project, where a World Trade Tower is envisaged.

NBCC on Wednesday informed Delhi high court that its ambitious project to redevelop seven

colonies in the city has several benefits, including improved housing. Comparing the stalled project to

the redevelopment of New Moti Bagh, NBCC maintained that it is a role model for such projects and

hopes to achieve similar standards for the seven colonies.

NBCC was responding to high court‘s queries on the status of approvals for the Nauroji Nagar project,

where a World Trade Tower is envisaged. Apprising the court about how fewer trees were cut due to a

change in the parking plan, NBCC argued that instead of horizontal expansion, vertical parking levels

were increased.

Earlier, the Centre had assured HC that there was no more requirement of water for the project and

that steps had been taken to ensure there was no traffic congestion due to the project. Rainwater

harvesting is a part of the project, the government has said, while defending the terms of reference and

the environmental clearance granted to the housing projects at Sarojini Nagar, Nauroji Nagar, Netaji

Nagar, Thyagaraj Nagar, Kasturba Nagar, Mohammadpur and Srinivaspuri.

The court had questioned the Centre on how a residential area could be converted into a commercial

zone without change of land use, seeking to know if the entire project is exempted from

environmental rules and Delhi‘s master plan.

The petitioner, Kaushal Kant Mishra, has alleged that there was complete ―non-application‖ of mind

by government agencies in granting environment clearance to the Nauroji Nagar redevelopment

project as it failed to consider the impact of traffic and other environmental concerns. Hearing in the

matter will continue later this month.

__________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/nbcc-tells-delhi-hc-its-redevelopment-projects-to-be-role-models/70580412

Page 20 of 48

Commercial circle rates slashed in Gautam Budh Nagar

"We had earlier proposed the reduction in circle rates, seeing a stagnation in the sale of larger

commercial properties in the district.” district magistrate BN Singh told TOI.

With the commercial real estate market going through a slump, the district administration on

Wednesday approved a reduction in circle rates in Gautam Budh Nagar, with effect from August 8.

The reduction is 21% for floor-wise commercial property and 21.5% for individual commercial

property.

This is for the first time that the district administration has reduced circle rates — the minimum value

at which sale or transfer of property takes place — in some categories in Gautam Budh Nagar since

the UP Stamp (Valuation and Property) Rules came into effect in 1997. The administration has also

waived the 25% surcharge for malls and 6% surcharge for group housing societies — 2% each for

club, swimming pool and gym — across the district.

―We had earlier proposed the reduction in circle rates, seeing a stagnation in the sale of larger

commercial properties in the district. Since the proposal did not meet with any objection, we have cut

down the rates to keep them more realistic,‖ district magistrate BN Singh told TOI.

As circle rates for commercial property in Noida has been the highest in Noida‘s sectors 18 and 38A,

the rates in these areas have now been reduced from Rs 4.5 lakh to Rs 3.55 lakh per sq m for shops,

from Rs 3.52 lakh to Rs 2.78 lakh for offices and Rs 3.45 lakh to Rs 2.72 lakh for warehouses.

Commercial property rates are the lowest in areas such as sectors 63A, 69, 95, 103, 106, 109, 11, 123,

138, 145, 150 and Noida Export Processing Zone (NEPZ).

Officials hoped the reduced circle rates will be a relief for investors and homebuyers in Noida as it is

also going to bring down registry charges and stamp duty. ―We realised that the surcharge for

escalator and AC was levied only in Noida malls, and not in Greater Noida or any other neighbouring

city. We were seeing an increasing trend towards renting mall space, rather than buying it,‖ said S K

Tripathi, additional inspector general of the stamps and registration department.

No changes have, however, been made in residential, commercial, institutional, industrial and IT/ITeS

categories in Dadri, Jewar and Greater Noida. ―With the new international airport coming up in Jewar,

it is the most promising area in terms of revenue. In the coming year, we are hopeful that more people

will invest in Jewar, especially in commercial property. So, there is no apparent need to reduce rates

in that area,‖ Singh said.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/commercial/commercial-circle-rates-slashed-in-gautam-budh-nagar/70580253

Page 21 of 48

Ramco Cements reports net profit of Rs 191.97 crore in Q1 FY20

The company’s revenues were Rs 1,392 crore, up by 14% y-o-y. “We have achieved highest ever

EBITDA of Rs 367 crore during this quarter.

The Ramco Cements Ltd, on Tuesday said that its profits for the quarter ended June were Rs 191.97

crore, up from Rs 124.98 crore in the corresponding quarter last year, on the back of better cost

control and improved prices.

The company‘s revenues were Rs 1,392 crore, up by 14% y-o-y. ―We have achieved highest

ever EBITDA of Rs 367 crore during this quarter. Our capacity expansion programme is on schedule.

We are confident that we would become 20 million tonnes per annum company by end of 2020,‖

said AV Dharmakrishnan, CEO of the company in a statement. The company sold 2.7 million tonnes

of cement during the quarter (2.61 million tonnes previously). The company said it contributed Rs 19

crore to CM Relief Fund/Political Parties during the quarter.

―Overall result appears to be on expected line. However, higher other expenditures are likely to be a

key negative. Nonetheless, capacity expansion of 6.2 million tonnes (40% of existing capacity) for Rs

5,500 crore ($80/tonne) without stretching its Balance Sheet with Debt Equity Ratio of 0.3x bodes

well for the company,‖ wrote analysts at Reliance Securities in a note.

Ramco is doubling the capacity of the grinding unit in Kolaghat, West Bengal to 2 million tonnes, a

new 0.9 million tonnes unit is coming up in Haridaspur in Orissa, expanding the grinding units in

Vishakapatnam to 2 million tonnes from 0.95 million tonnes. It is also expanding the clinker capacity

in Jayanthipuram in AP from 3 million tonnes to 4.5 million tonnes and a new cement plant in

Kolimigundla in Kurnool district with a clinker capacity of 2.25 million tonnes and a cement capacity

of 1 million tonnes.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/allied-industries/ramco-cements-reports-net-profit-of-rs-191-97-crore-in-q1-fy20/70580218

Page 22 of 48

Ludhiana civic body mulls land sale, rate revisions to beat cash crunch

Moreover, the properties which were given on lease at minimal rates will be considered for rate

revision.

At a time when development works in the city have come to a standstill and the civic body is unable

to give regular salaries to its employees, the MC has planned to sell some of its properties to generate

revenue.

Moreover, the properties which were given on lease at minimal rates will be considered for rate

revision.

The decision to sell prime properties and revise rental and lease rates was taken during MC‘s general

MC house meeting and mayor Balkar Sandhu had formed a committee to zero in on the rates for

selling these properties. The committee included building branch officials and councillors Pal Singh

Grewal, Rakesh Prashar, Gagandeep Bhalla, Sarabjit Singh Laddi, Harjinderpal Lali, Money Grewal

and Sukhbir Singh Dhillon.

The properties which will be auctioned include shops inside Indoor Stadium on Pakhowal Road, MC

land in Prem Nagar near Rose Garden, over 268 square yards of land on the backside of Kailash

Cinema, vacant shops in Bairing market and shops from Raikhy Cinema chowk up to government

school.

The rented sites being considered for rate revision comprise Kundan Vidya Mandir, Arya College,

Krishna Charitable hospital, Khalsa Education College and Dharam Seva Trust.

Rakesh Prashar, a member of the committee, said they have conducted a meeting regarding these

properties and the officials came up with government prices which are very low, so they have been

advised to bring market rates.

Assistant town planner S S Bindra said during the first meeting of the committee members on

Tuesday, only a few properties were discussed in detail, so another meeting will be held on Friday.

Works stalled

The MC is facing an acute financial crunch. The employees haven‘t received salaries for July and the

union members are demanded its release by August 15. Last month too, they had to threaten the

authorities of going on indefinite strike against the non-payment of salaries, following which they

were paid.



Link https://realty.economictimes.indiatimes.com/news/regulatory/ludhiana-civic-body-mulls-land-sale-rate-revisions-to-beat-cash-crunch/70571993

Page 23 of 48

Development works have been stalled and to avoid piling up of proposals, the mayor is reluctant to

conducting the F&CC meetings and even house meetings.

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Page 24 of 48

Vadodara-based builder, two others booked for forging property

documents

Shah is currently hiding in Canada. His two acquaintances - Mainak Patel and Kamlesh

Thakkar - had allegedly planned to usurp a property near Shreyas School in Manjalpur which

was owned by complainant Jaishree Shah.

Real estate developer Bhupendra Shah and two other persons were booked at Makarpura police

station for forging documents of a property for usurping it.

Shah is currently hiding in Canada. His two acquaintances - Mainak Pateland Kamlesh Thakkar - had

allegedly planned to usurp a property near Shreyas School in Manjalpur which was owned by

complainant Jaishree Shah.

Jaishree alleged that when she left for the US in November 2014, the trio filed a case in the court,

making the property disputed. In the court, they produced forged power of attorney which had fake

signatures of Jaishree.

Jaishree has alleged that using the forged power of attorney, Shah got the property in his name and

even broke into the house. ―Shah forged Jaishree‘s signature on her cheque books and got these

cheques deposited,‖ police said.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/vadodara-based-builder-two-others-booked-for-forging-property-documents/70568910

Page 25 of 48

BMC to get tough against those who indulge in illegal constructions

repeatedly

In an order to ward-level officers, the administration said that it was to deter others.

The Brihanmumbai Municipal Corporation (BMC) plans to take Mumbai Police's help to tackle those

who indulge in illegal constructions repeatedly, despite civic notices and action being taken against

them.

In an order to ward-level officers, the administration said that it was to deter others. "Often, despite

notices and taking action, like demolishing the illegal structure, it springs back. To be stern with

repeat offenders, notices will now be issued under MRTP Act, 1966, and police cases will be filed

too," said a civic official, adding that if needed, senior civic officials will co-ordinate with the police

to ensure that cases are registered.

After the recent building collapse in Dongri, which killed 13 persons, assistant municipal

commissioner (B ward) Vivek Rahi was suspended. A random inspection of 10 buildings in that area

by civic vigilance department found gross violation of rules, with full-fledged constructions

undertaken in the name of repairs, at most structures.

Interestingly, after learning that vigilance department officers were on an inspection recently, local

ward staff demolished illegal parts of two buildings.

__________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/bmc-to-get-tough-against-those-who-indulge-in-illegal-constructions-repeatedly/70562719

Page 26 of 48

Hyderabad: Revenue officials stop buildings near Teegalasagar for

breaching rules

However, the lake is caught in a turf war between officials over jurisdictional issues as it falls in

Patancheru mandal, but the area in question comes under Ameenpur mandal.

Revenue officials of Ameenpur have stopped works pertaining to real estate projects

near Teegalasagar in Patancheru after receiving a plaint that buildings are being constructed right on

the full tank level (FTL) of the lake.

Environmental activist Thakur Raj Kumar Singh of Human Rights Forum and Consumer Protection

Cell had lodged a complaint with the officials concerned in Ameenpur alleging that a college, a school

and several buildings were being constructed on the lake bed that violate the FTL rules. He also

presented maps and images of the encroachments to the officials.

However, the lake is caught in a turf war between officials over jurisdictional issues as it falls in

Patancheru mandal, but the area in question comes under Ameenpur mandal.

―We have stopped the construction works of Suryodaya Ventures temporarily after we received the

complaint. We are verifying the allegations. Developers of Suryodaya ventures are claiming that they

had obtained a no objection certificate (NOC) from the irrigation department. We will investigate and

take action, if required,‖ Ameenpur tahsildar J Swamy told TOI.

Raj Kumar Singh, in his complaint to the chief secretary, HMDA, irrigation and vigilance and

enforcement departments, alleged that illegal structures were being built on Teegalasagar cheruvu of

Patancheru and Patelguda villages. The complainant alleged that the sluice outflow nala of the lake

has been totally encroached upon and that the lake bed has also been encroached upon by a college, a

school and another building.

―No construction can be carried out in water bodies, nalas, buffer zone areas and inlets and outlets of

lakes. The HMDA and irrigation officials are allowing constructions and this is a clear violation of

environmental laws. AP Telangana Area Land Revenue Act and AP Land Grabbing Prohibition Act

prohibits construction of such structures. Patelguda grampanchayat must also stop the illegal

constructions and clear the area of all encroachments. Officials must fix FTL and boundaries of the

lake as per water body and flood water nalas using Survey of India maps and satellite imagery. The

lake bund, weir and sluice must be restored and the violators must pay for the damages. Legal action

must also be initiated against officials responsible for allowing the encroachments,‖ the letter added.



Link https://realty.economictimes.indiatimes.com/news/regulatory/hyderabad-revenue-officials-stop-buildings-near-teegalasagar-for-breaching-rules/70566927

Page 27 of 48

RBI cuts repo rate by 35 bps

This is the fourth cut by the central bank in 2019. The last time the RBI made so many back-to-

back cuts was after the global financial crisis in 2008.

The Reserve Bank of India on Wednesday cut the repo rate by 35 basis points to 5.40% from the

current 5.75 per cent. The reverse repo rate was reduced to 5.15%.

"The decisions are in consonance with the objective of achieving the medium-term target for

consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting

growth," the Reserve Bank said in its bi-monthly monetary policy statement.

This is the fourth cut by the central bank in 2019. The last time the RBI made so many back-to-back

cuts was after the global financial crisis in 2008.

The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Dasmaintained

its "accommodative" stance but said further rate reductions would depend on the level of inflation.

The MPC further said that the domestic economic activity continues to be weak, with the global

slowdown and escalating trade tensions posing downside risks.

The central bank revised its Gross Domestic Product (GDP) growth estimate to 6.9 per cent for this

year from the earlier projection of 7 per cent.

Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks

to reduce interest rates for consumers on loans. Reverse repo rate is at which it borrows from banks.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/rbi-cuts-repo-rate-by-35-bps/70568331

Page 28 of 48

Housing Ministry to award states, banks for PMAY work

The progress is linked with data being uploaded in MIS system by them.

Ministry of Housing & Urban Affairs will award states, union territories, urban local bodies and

beneficiaries for the progress made in constructing houses under Pradhan Mantri Awas

Yojana (PMAY).

The progress is linked with data being uploaded in MIS system by them.

The ministry will also award banks and housing finance companies for their contribution to PMAY

through CLSS scheme.

Over 85 Lakh houses have been under PMAY-Urban. Out of these, around 50 lakh houses are at

various stages of construction and more than 26 lakh houses have already been completed.

It will also reward select beneficiaries from each state, union territory for building their house in a

most aesthetic and innovative manner. To facilitate this, a PMAY(U) mobile application, launched in

February, has been designed for beneficiaries to upload high-resolution photographs and videos clips

highlighting their success stories of owning a house under PMAY (U).

The last date to participate in the awards is August 20.

_________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/housing-ministry-to-award-states-banks-for-pmay-work/70570801

Page 29 of 48

DDA's land pooling window to stay open till September 6

On February 5, 2019 DDA had launched a single-window online portal for inviting registration

under the land pooling policy.

Delhi Development Authority's (DDA) ambitious land pooling policy, which initially didn't get a very

encouraging response from land owners in the capital, has witnessed a spurt in areas being registered

under the policy.

On February 5, 2019 DDA had launched a single-window online portal for inviting registration under

the land pooling policy. The portal was the first step towards operationalisation of the policy for

inviting "expression of willingness" from land owners of contiguous land parcel of any size falling in

five planning zones in the city. The portal was scheduled to be kept open for six months - till August

4. However, DDA has now decided to extend the date.

A DDA spokesperson said that as on August 5, 4,281 applications - amounting to approximately

4,452 hectares of land -have been registered. The area registered under land pooling amounts to

23.3% of the total land that can be developed under the land pooling policy.

"Considering the encouraging response and the request from various land owners for extension of the

time limit for expressing willingness for participation under the policy, the date was extended to

September 6," the spokesperson said.



Link https://realty.economictimes.indiatimes.com/news/industry/ddas-land-pooling-window-to-stay-open-till-september-6/70569318

Page 30 of 48

To encourage more land owners to come forward and register land under the policy, DDA also plans

to develop two 'model sectors' from the land that has been pooled till now. These sectors would

showcase the development that DDA envisages under the policy and the authority believes these

model sectors would encourage land owners "who are sitting on the fence right now to come forward

and aggregate their land".

"As soon as we are able to develop even one model sector as per our vision, it will act as a pilot

project and showcase the benefits of the land pooling policy. We are confident that once the model

sectors come up, land owners will flock to get their land pooled," the official said.

"We would develop roads, drainage, water pipelines etc. as soon as a sector is marked for

development. We are in talks with the Delhi Jal Board for the provision of water for these sectors," he

said. The unavailability of adequate water and other resources had forced DDA to decrease the

initially planned floor area ratio (FAR) of 400 to 200 for areas to be developed under land pooling.

The authority has also created a promotional video, which showcases the benefits of the policy. "The

basic concept behind our presentation is that of a person explaining the policy to farmers. We have

carried out many presentations in the last one month," the official said.

Once the land registration process is completed, the land parcels that have been registered for pooling

will be verified by the Delhi government. After the verification process, DDA will send notices to

land owners to form consortiums and following this, it will prepare sector plans showing land area

break up.

The extension of the portal is expected to ensure maximum participation and pooling in the identified

sectors so that planning and execution of infrastructure can be taken up in an integrated manner.

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Page 31 of 48

Foreign reinsurers may be allowed to open satellite offices in GIFT city

At present, foreign reinsurers which already have branches in India have to apply for a fresh

licence in GIFT City, which enjoys taxation benefits and relaxed net owned fund or NOF norms.

The insurance regulator is considering a proposal that will allow foreign reinsurers to open satellite

offices in International Financial Services Centre (IFSC) in Gujarat International Finance Tec-

City(GIFT City), a move expected to facilitate on-shoring of international insurance transactions by

foreign reinsurers.

At present, foreign reinsurers which already have branches in India have to apply for a fresh licence in

GIFT City, which enjoys taxation benefits and relaxed net owned fund or NOF norms.

―A meeting was held last Friday between representatives of GIFT City, reinsurers and officials of the

Insurance Regulatory and Development Authority of India (IRDAI), where the regulator said that it

would consider the proposal,‖ an official aware of the matter told ET on condition of anonymity.

An email sent to IRDAI did not elicit any response till press time.

There are 10 foreign reinsurers which have already set up branches in India.

Reinsurers have argued that taking a fresh licence is cumbersome and against the very principle of

ease of doing business in India, said the official.

―IRDAI has some concerns over regulatory issues such as solvency norms which they will be

examining,‖ said the official.

An industry executive said that if allowed foreign reinsurers will be able to write offshore reinsurance

premiums otherwise generated in Asian reinsurance hubs such as Singapore and Malaysia.

Experts said that since foreign reinsurers will continue to pay 40% tax on their Indian business profits,

they will focus on bringing regional business into India because as per the current norms in IFSC,

GIFT City only the minimum alternate tax of around 9% is payable.

In the budget for 2019-20, the government announced that it would reduce NOF requirement of

reinsurers to ₹1,000 crore from ₹5,000 crore.

―It would make imminent business sense for foreign reinsurers to lap up this opportunity,‖ said

Satyendra Shrivastava, partner Khaitan Legal Associates. ―Such units could book regional business



Link https://realty.economictimes.indiatimes.com/news/industry/foreign-reinsurers-may-be-allowed-to-open-satellite-offices-in-gift-city/70568396

Page 32 of 48

from neighbouring countries in South Asia and beyond from GIFT City IFSC and avail tax advantages

for the same.‖

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Page 33 of 48

Over 4,200 applications received through portal for land pooling: DDA

The policy, notified by DDA in September last year, is aimed at allowing the city to get 17 lakh

housing units capable of accommodating 76 lakh people.

Over 4,200 applications for nearly 4,452 ha of land have been received by DDA through its

registration portal for its land pooling policy, officials said on Tuesday. The Delhi Development

Authority had launched the online portal in February to ease application and verification processes for

stakeholders of the land pooling policy.

The policy, notified by DDA in September last year, is aimed at allowing the city to get 17 lakh

housing units capable of accommodating 76 lakh people.

It covers urbanizable areas of urban extensions at 95 villages in the national capital.

"As on August 5, a total 4,281 number of applications amounting to nearly 4,452 hectares of land has

been registered under the portal," a senior official said.

The land poling policy is based on public private partnership towards pro-actively increasing

economic opportunities and housing supply in a time-bound manner and harnessing private potential

through pooling of land parcels.

Under the policy, agencies will develop infrastructure like roads, schools, hospitals, community

centres and stadia on the pooled land and return a portion of the plot to farmers who can later execute

housing projects with the help of private builders.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/over-4200-applications-received-through-portal-for-land-pooling-dda/70562493

Page 34 of 48

Maharashtra government to tighten building rules around Pune's

Indrayani riverbed

The structures came up over the years on the banks of Indrayani, which originates from

Kurvande village near Lonavla and flows downstream to the pilgrim centres of Dehu and

Alandi.

The state urban development department has initiated the process of incorporating blue and red flood

lines along the Indrayani river in the Regional Plan for the district.

Non-incorporation of the flood lines in the Regional Plan (RP) is seen as a source of ambiguity over

the legality of constructions and structures in the Indrayani riverbed, particularly near Lonavla, which

have often led to the flooding of surrounding areas during monsoon showers.

The structures came up over the years on the banks of Indrayani, which originates from Kurvande

village near Lonavla and flows downstream to the pilgrim centres of Dehu and Alandi.

On a commitment to the Bombay high court in a long-standing litigation over such

construction/encroachments, the urban development department on August 5 issued a notice inviting

suggestions and objections from public over a proposal to modify the RP for Pune district as well as

the Development Control and Promotion Regulations (DCPR) of 2018 for the Pune Metropolitan

Region Development Authority (PMRDA).



Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-government-to-tighten-building-rules-around-punes-indrayani-riverbed/70570845

Page 35 of 48

Kishor Gokhale, the urban development department under-secretary, issued the public notice

mentioning the proposal under the provisions of Section 20 of the MaharashtraRegional Town

Planning (MRTP) Act, 1966.

The proposed modification prohibits any constructions in the area between the riverbank and the blue

flood line, barring exceptions such as open vegetable market, garden, lawns, cremation and burial

grounds, among others.

The notice further proposes, ―Redevelopment of the existing authorized properties within river bank

and blue flood line may be permitted if the plinth height of the building is not less than 0.45m above

the red flood line and after obtaining an NOC from the irrigation department.‖

The notice states, ―Suggestions or objections from general public regarding the proposed

modifications in the RP and the DCPR be submitted to the assistant director of town planning, Pune

branch, at the new administrative building opposite Vidhan Bhavan, Pune, within 30 days from the

date of publication of the notice.

The assistant director is also appointed as the officer for hearing suggestions or objections.‖ The plans

showing the proposed modification shall be kept open for inspection by public during office hours on

Page 36 of 48

all working days at the offices of the PMRDA metropolitan commissioner and the assistant director of

town planning, it added.

Sadashiv Sapre, one of the petitioners in the high court litigation, told TOI: ―The state‘s move is a

progressive step as notifying the flood lines is not only critical to addressing the issue of

constructions/encroachments in the Indrayani riverbed, but also to the rivers across Pune and other

parts of the state.

After the incorporation of the flood lines in the RP, it would be much convenient for the authorities to

remove or control such constructions or encroachments.‖

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Page 37 of 48

Over 3,000 allottees give up 1 BHK DDA flats in Narela

In about a fortnight since DDA held the draw of lots for housing scheme 2019, more than 35%

of the flats, all of which are one-bedroom ones, have been surrendered by the allottees.

Delhi Development Authority (DDA) is finding it difficult to find takers for its flats in Narela, even

after offering them multiple times.

In about a fortnight since DDA held the draw of lots for housing scheme 2019, more than 35% of the

flats, all of which are one-bedroom ones, have been surrendered by the allottees.

In the draw of lots for the housing scheme held on July 23, total 8,438 flats were allotted but till

August 6, 3,017 applicants have surrendered their flats. This is not the first housing scheme in which

flats allotted in north Delhi's Narela have been surrendered by the allottees.

Under the 2017 housing scheme, 4,711 allottees had surrendered the flats, mostly in Narela, within a

fortnight of the draw of lots.

The authority's latest housing scheme had received a very lukewarm response to begin with. While

there were nearly 18,000 flats on offer under the scheme, in the draw of lots only 8,438 flats were

allotted.

The housing scheme, with 17,922 flats on offer, was launched on March 25 and remained open till

June 10. The authority received 45,012 applications, but majority of these were for the 1,286 three-

bedroom, two-bedroom and one-bedroom flats in Vasant Kunj.

Even as majority of the flats were in Narela, only 5,000 applications were received for these,

including two-bedroom ones. While 7,700 flats were offered for economically weaker sections, only

1,500 applications had come for these flats.

"There are not many takers for flats in Narela due to its location. It is far away from the heart of the

city and also there is an acute shortage of public transport," a DDA official said.

"In earlier housing schemes, many allottees had complained about the small size of flats. That is why

we didn't include any flats from the old inventory in the scheme. The new flats are spacious but still

the response was not good," he said.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/over-3000-allottees-give-up-1-bhk-dda-flats-in-narela/70569411

Page 38 of 48

Tamil Nadu Slum Clearance Board's flats up for sale, rent in

Coimbatore

As the building is constructed by the government, all the basic amenities such as potable water,

sanitation and security are ensured.

―Are you here to purchase a flat or check out one for rent or lease?‖ would be the first question to

greet you if you are to walk into the Tamil Nadu Slum Clearance Board (TNSCB)‘s housing unit

at Ukkadam.

If the answer is ―yes‖, residents would swarm you like flies within no time. They are so desperate to

either rent out their flats or sell them out.

A resident, who didn‘t want to be named, told TOI the benefits of buying a flat in the housing unit

were aplenty. ―It is in the city centre. Right from market to bus stand, everything is at walkable

distance.

As the building is constructed by the government, all the basic amenities such as potable water,

sanitation and security are ensured. Rather than spending thousands of rupees outside for much lesser

facilities, it is better to get one in the housing unit. A flat will be more than enough for a family of

four.‖

There are four floors – ground plus three – in each block and each flat is 275 sq ft big. Flats on the

ground floor are available for rent at Rs 3,000 and an advance of Rs 30,000. As the floor rises, rent

comes down by Rs 500 and advance drops by Rs 5,000. For leasing out the flats, an agreement for 11

months is signed.

Flats on the ground floor are leased out for Rs 2.5 lakh and the price comes down by Rs 50,000 as the

floor rises.

The housing unit was built by TNSCB to accommodate the people, who were evicted from the public

land that they had encroached upon. The object of allotment itself is defeated, if the flats are sold or

rented out to others.

According to the terms and conditions in the allotment orders, the beneficiaries are not allowed to sell

or rent out their flats. There are also provisions to cancel the allotment, if the beneficiaries are found

to be violating the terms.

Another resident said about one-fourth of the housing unit was either rented out or leased out and



Link https://realty.economictimes.indiatimes.com/news/residential/tamil-nadu-slum-clearance-boards-flats-up-for-sale-rent-in-coimbatore/70571376

Page 39 of 48

many more were available. Pointing out that the flats were rented out for students as well, the resident

said, ―The flats are available only for girls and families. Accommodating bachelors would welcome

unwanted troubles. A few bachelors are staying in a flat and we would evict them as soon as the

welfare association is formed. Families are not comfortable with them around.‖

A third resident, who also requested anonymity, said the flats were also available for sale and the cost

ranged between Rs 5 lakh and Rs 6 lakh. ―But it is advisable to wait for at least six months to

purchase a flat here. We all have just moved in and haven‘t completed the verification process, which

is mandatory to get the ownership documents. Officials would drop in anytime for verification and it

might lead to unwanted troubles.‖

He said he had two flats in the housing unit as TNSCB had demolished two of his houses, which were

constructed along waterbodies. He owns a house with three bedrooms in the city. There are several

people like him, who had got flats in the housing unit.

The housing unit with 1,840 flats in 20 blocks had remained vacant for almost a decade after a couple

of blocks sunk into the ground in 2009. It‘s only a few months ago that TNSCB allotted the flats as

alternative accommodation for encroachers evicted from waterbodies. The flats were given to them

free of cost after the city corporation took care of the costs – Rs 36,000 per flat.

When contacted, A L C Kumar, executive engineer of TNSCB, said, ―We have given specific

instructions that the flats should not be sold or rented out. If they violate the terms, we will cancel

their allotment order. As we have collected details like biometric and Aadhar card number of the

beneficiaries, verification could be done at any time. We have been receiving similar complaints and

have been creating awareness among the public.‖

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Page 40 of 48

Agra development body not to approve building plans without

rainwater harvesting system

However, colonies developed by ADA also do not have the required set-up for rainwater

harvesting.

Agra Development Authority(ADA) has decided not to approve maps of houses that do not have a

provision for rainwater harvesting. Besides, notices are being issued to owners of large premises for

installation of rainwater harvesting system.

However, colonies developed by ADA also do not have the required set-up for rainwater harvesting.

For instance, both Shastripuram colony and Tajganj, developed by ADA, lack facilities for harvesting

rainwater. Now, ADA officials have claimed that required arrangements will be made soon.

ADA chief engineer AK Singh said, ―Rainwater harvesting systems are being installed in all

the residential projects of the ADA. The work will be completed soon. Notices have been issued to

owners of large premises not having rainwater harvesting system. They have been asked to make a

time-bound arrangement.‖

Officials claimed that only 251 buildings in the city have rainwater harvesting system installed in

them.

According to a state government directive, every building constructed in an area of 300 square metres

or more must be equipped with a water harvesting system. While the directive has been in force since

2008, few have bothered to implement it.

After the rules were tweaked in 2013-14, property owners were required to deposit a certain sum with

ADA as a guarantee for setting up rainwater harvesting system before seeking an approval for

house/building plan.

The amount of security money is Rs 50,000 for a 300 to 500 square metre plots, Rs 1 lakh for

properties covering over 500 sq metres and Rs 10 lakh for 1,000 sq metre or above land.

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Link https://realty.economictimes.indiatimes.com/news/residential/agra-development-body-not-to-approve-building-plans-without-rainwater-harvesting-system/70571079

Page 41 of 48

Mysuru development body's sites up for auction at premium price

An official claimed that usually the base prices of sites are increased 20% beyond the

government guidance value. Since it is the only source of revenue for the urban body, it goes all

out to maximise the auctions.

Despite real estate facing slowdown, Mysuru Urban Development Authority (Muda) continues to

keep the prices of its premium sites — which it auctions — to get a better revenue.

In its latest auction (third in this year) of about 50 sites, the urban development body has escalated the

value of sites beyond the guidance value in Mysuru. Sites in Dattagalli III Stage and Dattagalli E&F

blocks and some in Bannimantap B Layout, Hebbal I and III stages and JP Nagar I Stage are up for

auction.

An official claimed that usually the base prices of sites are increased 20% beyond the government

guidance value. Since it is the only source of revenue for the urban body, it goes all out to maximise

the auctions. Sites not getting any customers are re-auctioned later. Muda will revise the price if the

sites do not get any buyers.

Muda secretary M K Savitha told TOI that going by the past experiences, almost 90% of sites put up

for sale will have buyers of in the very first auction. Muda will think of revising prices of only those

sites which fail to get minimum bidders or do not have buyers.

―But till now, Muda has not come across such a situation. There is demand for Muda sites because of

their authenticity. Obviously, our prices are based on guidance and market values in particular

localities,‖ she said, explaining the rationale behind keeping the price premium.

The base price of two corner sites in the latest auction was Rs 1.67 crore (for 445.5sqm) and Rs 1.35

crore (for 358.5sqm) in Dattagalli III Stage. This is Rs 25 lakh more than the guidance value. The base

price of four intermediate sites (of approx 60x40sqft) at Dattagalli E & F blocks is quoted Rs 89 lakh,

which otherwise is Rs 65 lakh.

―Rise in the prices of premiums sites owned by Muda would obviously escalate real estate in any

region,‖ said M D Adishsagar, realty expert recognised by Indian Institute of Real Estate. He,

however, suspects some organised racket being active even in online auction of sites. ―This must be

checked to stop misuse of sites,‖ he added.

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Link https://realty.economictimes.indiatimes.com/news/residential/mysuru-development-bodys-sites-up-for-auction-at-premium-price/70568614

Page 42 of 48

State Bank of India cuts lending rates by 15 bps

SBI's one-year marginal cost of fund-based lending rate, or the MCLR, will come down to

8.25% per annum from 8.40% earlier with effect from Aug. 10, SBI said in a statement.

State Bank of India(SBI), the country's largest lender by assets, on Wednesday cut its benchmark

lending rates by 15 basis points across all tenors, shortly after the central bank slashed interest rates by

a larger-than-expected 35 bps to boost the economy.

SBI's one-year marginal cost of fund-based lending rate, or the MCLR, will come down to 8.25% per

annum from 8.40% earlier with effect from Aug. 10, SBI said in a statement.

The Reserve Bank of India (RBI) cut interest rates for a fourth straight meeting in 2019, taking

advantage of mild inflation to expand its effort to boost an economy growing at its slowest pace in

nearly five years, but there have been concerns over speedy transmission of these cuts to the economy.

"SBI has effected full transmission of repo rate cuts by RBI and has passed on the benefit of repo rate

reduction by 85 bps during the current financial year to its CC/OD (cash credit and overdraft)

customers with limits above 100,000 rupees," SBI said.

The lender added that after its fourth cut in MCLR for the year, home loans had become cheaper by

35 bps since April 10.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/state-bank-of-india-cuts-lending-rates-by-15-bps/70570338

Page 43 of 48

India Cements reports net profit of Rs 64 crore in Q1 FY20

The company's net income stood at Rs 1,503.61 crore in the said quarter, a growth of from Rs

1,393.76 crore it registered in the similar quarter last year.

India Cements reported net profit of Rs 64.27 crore in the quarter ended June 2019. Its profit after tax

was Rs 2.65 crore in Q1 FY19.

The company's net income stood at Rs 1,503.61 crore in the said quarter, a growth of from Rs

1,393.76 crore it registered in the similar quarter last year.

The cement prices which started improving from the month of February'19 stabilised at reasonable

levels during the next three months and has witnessed some aberration which is likely to get corrected

post monsoon, the company said in a media release.

"The capacity utilisation of the company during the quarter was 77%. With the improved selling price

of cement, the net plant realisation went up by 11% during the quarter over that of previous year," the

company said.

It had also taken pro-active steps to contain the cost of production and the variable cost has come

down by nearly 4% on a sequential quarter basis and was only marginally up when compared to the

same quarter of the previous year.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/allied-industries/india-cements-reports-net-profit-of-rs-64-crore-in-q1-fy20/70574167

Page 44 of 48

Katerra to invest over $100 million to construct manufacturing plant in

Hyderabad

"With this, we plan to double our capacity from the current 10 million sq ft to 20 million sq ft,"

said Ash Bhardwaj, President Asia and Middle East of the company.

Katerra, a construction company, plans to invest over $100 million to construct a manufacturing plant

in Hyderabad, said Ash Bhardwaj, President Asia and Middle East of the company.

"With this, we plan to double our capacity from the current 10 million sq ft to 20 million sq ft," said

Bhardwaj. It will deliver 8 million sq ft of building components every year through robotic assembly

line production.

The factory which is spread over 50 acres is expected to be complete by March 2020. This will be

company‘s second factory in India after Krishnagiri in Tamil Nadu.

In next three years, Katerra plans to expand into National Capital Region (NCR) and Mumbai region

as well. "We have plans to set-up factories in the Mumbai-Pune region in the later part of the year,

followed by a plant in NCR to cover the north market,‖ said Bhardwaj.

In the long run, it also plans to have 15-20 smaller spokes to cover the rest of the country.

The company will also set-up vocational training centre in Hyderabad to upskill the workforce and

will focus on providing them technical training.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/katerra-to-invest-over-100-million-to-construct-manufacturing-plant-in-hyderabad/70571080

Page 45 of 48

Home sales in Toronto jump 24.3% in July 2019

Total home sales climbed 24.3% from a year earlier, while listings only rose by 3.7%.

Growth in Toronto-area home sales outpaced an increase in new listings in July, as potential buyers

adjusted to stricter mortgage rules that came into effect in 2018, the Toronto Real Estate Board said in

a release on Tuesday.

Total home sales climbed 24.3% from a year earlier, while listings only rose by 3.7%. The average

home price rose 3.2%. "We're seeing growing pent-up demand for ownership housing, especially as

the number of (Greater Toronto Area) households continues to increase by 40,000 to 50,000 each year

due to strong population growth," TREB Chief Executive John DiMichele said in the release.

This could lead to "a chronically under-supplied marketplace and an acceleration of home price

growth to unsustainable levels," he added.

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Link https://realty.economictimes.indiatimes.com/news/residential/home-sales-in-toronto-jump-24-3-in-july-2019/70569041

Page 46 of 48

Affordable housing 'crisis' tests Saudi Arabia's reform drive

But Saudi Arabia is now pushing to boost mortgage lending in a contentious policy shift that is

squeezing the middle-class as it chips away at its cradle-to-grave welfare in an era of low oil

prices.

Saudi Arabia is building a futuristic megacity with promises of talking robots and flying taxis, but for

hundreds of thousands like academic Abdullah a simple dream remains elusive -- owning a home.

Housing is a potential lightning rod for public discontent in a country where affordable dwellings are

beyond the reach of many, posing a key challenge for Crown Prince Mohammed bin Salman as he

seeks to overhaul the oil-reliant economy.

For decades, the once tax-free petro-state dished out interest-free housing loans.

But Saudi Arabia is now pushing to boost mortgage lending in a contentious policy shift that is

squeezing the middle-class as it chips away at its cradle-to-grave welfare in an era of low oil prices.

For many like Abdullah, a 39-year-old father of three with a rented apartment in Riyadh, this has

delayed the dream of building his own home on the city's outskirts.

After more than a decade on a waiting list for an interest-free loan from the kingdom's Real Estate

Development Fund, Abdullah says it referred him to a commercial bank to take out a mortgage worth

445,000 riyals ($119,000).

He used the money to start building a house on a 350,000 riyals parcel of land for which he took a

separate bank loan, but construction had to be halted in May after he ran out of money.

Set up in 1974, the Fund is a government entity linked to the housing ministry, and covers about a

quarter of Abdullah's monthly mortgage payment.

But Abdullah says he is still left struggling to pay off both loans that eat up roughly half his monthly

income of 20,000 riyals ($5,300) amid rising living costs.

"The (mortgage) system is destroying the middle class, it is suffocating us," he told AFP outside his

half-finished home, urging a return to the interest-free loans.

- 'Dual tension' - The strain is felt more acutely by 41-year-old government employee Majid, who

earns only slightly more than the national average monthly income of 14,820 riyals ($3,950).



Link https://realty.economictimes.indiatimes.com/news/industry/affordable-housing-crisis-tests-saudi-arabias-reform-drive/70572313

Page 47 of 48

Such lower middle-class citizens are already struggling as the government scales back subsidies,

hiking water, electricity and gasoline prices and imposing a five percent value-added tax.

He is among some 500,000 people said to remain on the Fund's waiting list for interest-free loans,

with a final decision expected by 2020.

The Fund and the housing ministry did not respond to AFP's requests for an interview.

"The key to addressing the Saudi housing crisis is... to stimulate private sector funding and cut the

longstanding reliance on government subsidies," Saudi expert Najah al-Otaibi told AFP.

But this is all a shock to many Saudis accustomed for decades to cheap loans and a tax-free lifestyle.

It highlights the petro-state's challenge in weaning citizens off government largesse amid a huge fiscal

deficit, projected to reach $35 billion in 2019, or 4.2 percent of GDP.

"In Saudi Arabia, now there is a dual tension -- first is to provide affordable housing for the younger

generation feeling the pinch of higher costs of living, reduced subsidies, and less jobs," Karen Young,

from the American Enterprise Institute, told AFP.

"Second is to broaden financial services to expand credit products, and hope to spur consumer growth.

The latter has more chances of broader economic growth than returning to free government housing

practices."

The world's top oil exporter says it is seeking to partner with the private sector to stump up billions of

dollars to build around 1.5 million affordable homes in the coming years.

- 'Makes me angry' - Boosting home ownership is one of the key cornerstones of Prince Mohammad's

Vision 2030 reform programme. Nearly half of the country's 20.7 million Saudis owned their own

home in 2017, with hopes of reaching 70 percent by 2030.

The kingdom also wants to reduce the cost of an average home by 2020 to five times the average

annual income, down from 10 times the yearly salary in 2015.

Saudi Arabia has only a single digit mortgage penetration, one of the lowest among G20 countries,

according to the Arab News daily.

The housing ministry, which has announced multiple housing schemes to alleviate the crisis, says it

seeks to increase total mortgages to 502 billion riyals ($134 billion) by 2020, up from 290 billion

riyals ($77 billion) in 2017.

But some Saudis are pushing back, voicing resentment over continued state spending on grand

projects like NEOM, a planned $500 billion mega city in the kingdom's northwest, while many cannot

afford homes.

"Where is the 250 billion riyals?" has been a recent refrain on social media.

Page 48 of 48

It refers to the $67 billion allocated to the housing ministry in 2011 by the then King Abdullah,

apparently to address popular discontent as Arab Spring protests swept the region.

For Majid, who waited for years for a loan from the Fund, the current scenario means he can only rent

a small place rather than purchasing a house.

"When my eight-year-old daughter has to change her clothes in front of her brothers, I feel ashamed I

don't have a bigger house of my own," Majid told AFP, requesting that his real name be withheld.

"It makes me angry."

___________________________________________________________________

Documents

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