--Nov Oct--2019 - Credai Bengalcredaibengal.in/wp-content/uploads/2019/11/15Nov19-CB... · 2020-02-28 · processes during development plan and building plan sanction. The ... The

10-Oct-2019 15-Nov-2019

CREDAI Bengal Daily News Update | 15.11.19

Karnataka government coming up with new changes to support

realty sector: CNA Narayan, Deputy CM

"The government will look into improving the business model which can help in the

growth of the sector,” said Jagadish Shettar, Minister for Large and Medium Scale

Industries.

The real estate sector has been facing a lot of hurdles of late in terms of delayed approvals,

delay in facilitation that is creating a lot of inconvenience. To help the developers overcome

such challenges, Karantaka government will extend its complete support required by the real

estate sector," said C N Ashwath Narayan, deputy chief minister.

Narayan was speaking at CREDAI Statecon 2019 organized by CREDAI Karnataka.

"To avoid these challenges, the state government is coming up with new changes to make sure

that Karnataka is the best place to do business, added deputy CM.

CREDAI Karnataka appealed to the government that they must look at abolishing all NOCs for

plan sanction, withdraw extra 5% relinquishment for layout sanction by STRR & other LPAs,

incorporate Fire NOC and environmental requirements in building bye-laws, discontinue

provisional sanction and final sanction for layouts and cut down time loss due to duplication of

processes during development plan and building plan

sanction.

The builders' association also requested the government to allow substantial concession on plan

sanction fees etc. for affordable housing and introduce uniform fee for Khata across the state.

Jagadish Shettar, Minister for Large and Medium Scale Industries said, ―To support the sector,

it is important to look at relaxing the rules which will help in the growth of the industry. The

government will look into improving the business model which can help in the growth of the

sector.‖

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date November 14, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/karnataka-government-coming-up-with-new-changes-to-support-realty-sector-cna-narayan-deputy-cm/72058560

Chandigarh administration starts e-auction process of properties

The total reserve price of the commercial and industrial properties comes to Rs 15.1 crore

and Rs 33 crore, respectively, but they are leasehold.

The UT administration‘s estate office on Wednesday started the e-auction process of properties

in city. The estate office has put up properties — 11 residential, 14 commercial and one

industrial — on auction for two days--November 13 and 14. The process will end on Thursday

evening.

A senior official of UT estate official said that they are hopeful of generating huge revenue

from the auction of residential properties, whose total reserve price adds up to Rs 27.59 crore,

as all of them are freehold and anyone who buys them will not have shell out the exorbitant

leasehold-to-freehold conversion fee which is charged by the administration.

The total reserve price of the commercial and industrial properties comes to Rs 15.1 crore and

Rs 33 crore, respectively, but they are leasehold.

All residential properties are in southern sectors. One of them is a built-up house on a four-

marla plot in Sector 32A. The remaining properties are plots, whose reserve price ranges from

Rs 1.25 crore to Rs 7.53 crore. They are located in sectors 33, 35, 37, 38 and 40.

The UT estate office had even organised a workshop for interested persons on how they could

participate in the e-auction. Among the commercial properties, 13 are booths and one is a shop-

cum-office in Sector 42C.

The estate office had even extended the last date for registration of e-auction. Earlier, the estate

office had kept October 31 as the last date for registering for the e-auction. Later, it was

extended till November 10.

An official said a help desk was set up at the Estate Office for residents wishing to participate in

the auction.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/chandigarh-administration-starts-e-auction-process-of-properties/72048227

SC directs environment ministry to consider regularisation plea of

Mumbai's Adarsh society

The appeals filed by the society against the April 2016 order of demolition passed by the

Bombay high court are pending in SC.

The Supreme Court has directed the central environment ministry to consider a regularization

application filed by Adarsh Cooperative Housing Society in Mumbai under the latest 2018

notification that deals with constructions in coastal zone regulation (CRZ) areas.

The appeals filed by the society against the April 2016 order of demolition passed by the

Bombay high court are pending in SC. The tower in Cuffe Parade is caught in a dispute over

allotments of flats, building and environmental clearance. The MOEF had in January 2011

ordered demolition of the entire building and, in April 2016, the HC had upheld the order.

A bench of SC Justices L Nageswara Rao and Hemant Gupta passed the order on November 7

while hearing an appeal filed by Lt Gen Shantonu Chaudhary and others—allottees in the 31-

storeyed Adarsh building-—and other appeals filed by the society. Shekhar Naphade, counsel

for the society, said the society had last year sought regularization of the construction and filed

an application before the MoEF, but it was still pending consideration.

The society said that since the Centre has issued a new CRZ notification, it should be allowed to

seek regularization under its provision. The provisions provide for FSI higher than what



Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-directs-environment-ministry-to-consider-regularisation-plea-of-mumbais-adarsh-society/72053284

prevailed in 1991. The central government had taken possession of the building in 2017

pursuant to an interim order of the SC.

The SC said, ―Without prejudice to the contentions that may be raised by the parties at a later

point of time, we direct the MCZMA (Maharashtra Coastal Zone Management Authority) to

forward the proposals made by the appellants (Adarsh Society) with its comments to the Union

of India.‖ The SC directed the MoEF to ―strictly‖ consider it ―in accordance with the March 6,

2018 notification.‖ The society be given a ―personal hearing within six weeks‘‘ said the SC and

posted the matters for further hearing to January 2020.

________________________________________________________________________________________________

Thiruvananthapuram: Applicants may have to resubmit building

plans due to glitch in IBPMS

The LSG department has directed the corporation to process all permit applications

through the intelligent building plan management system (IBPMS) but it has been facing

one technical glitch after another.

With the government notifying Kerala municipality building rules 2019 (KMBR), the

corporation will have to modify the course of action it takes to process building permits.

The LSG department has directed the corporation to process all permit applications through the

intelligent building plan management system (IBPMS) but it has been facing one technical

glitch after another.

The applications will have to be processed as per the new rules from the date of their

notification, but the system is incorporated with KMBR 1999 and the new rules are significantly

different from the old ones. That means, many applicants will have to redraw the building plans

and submit them again.

Engineering wing officials said steps will be taken to ease any kind of inconvenience for the

public.

However, a few questions remain as to whether the corporation will switch to manual mode of

processing in the interim period when the online system would be updated or permit

applications will be put on hold.

Although the officials said directions have been issued from the LSG department to process all

present applications in accordance with old rules, the various status of applications pose another

problem.

As many as 9,026 applications have been received through IBPMS of which 4,360 applications

were processed while 3,420 had to be returned.

As many as 817 applications are being processed and nearly 400 files were either rejected or are

under scrutiny.

Even if the corporation decides to process all present files as per old rules, the different

categories, especially those files which were returned, will pose complex set of challenges.

The applicants will have to either prepare the plan in accordance with new rules or will have to



Link https://realty.economictimes.indiatimes.com/news/industry/thiruvananthapuram-applicants-may-have-to-resubmit-building-plans-due-to-glitch-in-ibpms/72052912

stick to old ones provided the corporation sets a timeline for the applications which would be

processed as per old rules.

Some of the sections dealing with location of septic tank and the distance from notified roads in

old rules, were a point of contention between the applicants and corporation authorities.

The civic body has issued explanatory notes citing that there were no issues with the software

and that all provisions in building rules were included in it.

Former mayor V K Prasanth had requested LSF minister for switching to manual mode after

IBPMS continued to pose problems for the building permit applicants.

The officials said even if applications received till the first week of November were to be

processed as per old rules, it would still have applications, which were rejected.

In those cases, the officials will have to decide if re-submission of application has to be based

on new rules or old ones.

_______________________________________________________________

Pune unsold housing inventory valued at Rs 1.05 lakh crore Sept-

end: Report

Comparatively, the commercial real estate in Pune has a stable outlook. The demand in

the city for commercial office space has historically outpaced the supply. Resultantly, the

vacancy levels have come down gradually.

Unsold inventory of ready and under-construction houses in in Pune property market is valued

around Rs 105,000 crore as on September end, said ratings agency ICRA.

Pune real estate market has been passing through a difficult phase since quite some time now.

Real estate rates appreciation, which had been healthy till 2012-13, has largely turned stagnant

thereafter. Out of total units under construction, around 77% are priced under Rs 75 lakh.

According to ICRA, significant regulatory developments, changing financing environment and

weak demand has been affecting the real estate prices. Dwindling demand from investors due to

limited returns over the past few years and uncertainties in the economic environment has

impacted the market.

As the city‘s economy is also critically dependent on IT/ITeS and automobile, favourable

demographic profile of young workforce and matching supply with reasonable pricing had

ensured conducive environment for the Pune residential real estate.

―Significant pressure on key user industries and waning investor demand have impacted the

residential real estate market in Pune and sales velocity is likely to remain slow in the near term.

The market is undergoing structural change and unorganized local developers are struggling to

adjust with the changing operating environment,‖ said Anand Kulkarni, Assistant Vice

President and Associate Head – Corporate Ratings, ICRA.

The ratings agency has analysed 2,800 ongoing projects in Pune metropolitan region having

total of 2.8 lakh units and over 178 million sq ft carpet area.

Comparatively, the commercial real estate in Pune has a stable outlook. The demand in the city

for commercial office space has historically outpaced the supply. Resultantly, the vacancy

levels have come down gradually.

The demand for commercial realty is expected to continue in the near to medium term

considering cost arbitrage offered by the city as well as adequate availability of skilled

manpower and social infrastructure. As additional supply is also expected to enter the market,

the vacancy levels are expected to be stable at around 4-6% over the next few years.



Link https://realty.economictimes.indiatimes.com/news/industry/pune-unsold-housing-inventory-valued-at-rs-1-05-lakh-crore-sept-end-report/72056209

________________________________________________________________


Lotus Panache buyers seek removal of RP over lack of

transparency

Though the NCLT will take a final call on the matter on November 25, the removal of the

interim resolution professional (IRP) and the authorised representative (AR) could

further delay the completion of the two unfinished ‘Lotus’ brand projects

In an unusual development, buyers in the Lotus Panache project have sought the immediate

removal of the two National Company Law Tribunal (NCLT)-appointed insolvency

professionals over their ―lack of transparency‖ in getting developers to complete the 3,000

unfinished flats of the crisis-hit 3C subsidiary Granite Gate company.

Though the NCLT will take a final call on the matter on November 25, the removal of the

interim resolution professional (IRP) and the authorised representative (AR) could further delay

the completion of the two unfinished ‗Lotus‘ brand projects — Panache and Boulevard — in

Noida.

This is because the new appointments would mean that the entire insolvency proceedings have

to be initiated from scratch. Already five developers based out of Delhi, Noida and Gurgaon

have submitted their resolution plans and the IRP was to announce the best bidder‘s name on

November 13.

But homebuyers said they were upset with the way IRP Prabhjit Singh Soni and AR Sunil

Kumar Agarwal have been trying to revive the two projects, claiming they were still not handed

over the details of the forensic audit of Granite Gate as well as information memorandum by the

duo.

In fact, the buyers had first moved the NCLT on September 30 against Soni and Agarwal but

their plea was rejected. Subsequently, on October 31, the buyers appealed against the NCLT

order before the National Company Law Appellate Tribunal. And on November 11, the

appellate tribunal ruled in the favour of homebuyers.

―Buyers have been given time till November 25 by National Company Law Appellate Tribunal

(NCLAT). They would have to convene a meeting before the date and let the NCLT know

about it. The NCLT will decide the fate of IRP and AR,‖ lawyer for Lotus Panache Welfare

Association, Sahil Sethi said.

Soni did not respond to phone calls or text messages from TOI. But Agarwal said, ―We would

continue to follow NCLT‘s instructions. So far we have not received any order copy from

NCLT directing us to exit the resolution process midway.‖

However, Sethi insisted that due procedure would be followed and by November-end, both

Agarwal and Soni would cease to be part of Granite Gate resolution process. ―The appellate


Link https://realty.economictimes.indiatimes.com/news/residential/lotus-panache-buyers-seek-removal-of-rp-over-lack-of-transparency/72064197

tribunal has left it up to homebuyers to convey their collective decision to NCLT. It is just a

matter of a few days,‖ he added.

________________________________________________________________

Greater Mohali development body delays possession of three

projects

They claim that roads, sewers, storm-water drains, water and electricity lines, and the

network of streetlights are unfinished in all these three colonies. This is why older allottees

have been unable to move to their homes for years.

House buyers of IT City, Aero City, and Eco City have accused Greater Mohali Area

Development Authority (Gmada) of failing to lay the promised basic infrastructure in three of

its biggest projects, so far.

They claim that roads, sewers, storm-water drains, water and electricity lines, and the network

of streetlights are unfinished in all these three colonies. This is why older allottees have been

unable to move to their homes for years.

Some of them who received plots in IT City said the civic authorities had delayed the handing

over of possession. In mid-2017, they started receiving letters of intent (LOI), which promised

them possession within a year.

The buyers of neither residential nor industrial plots have received possession. Nearly 200

people who received industrial plots are waiting for Gmada to fulfill its promise. The IT City

scheme of 200 plots (145 measuring 500 square yards and 55 measuring 1,000 sq yd) was

launched on October 3, 2016, and closed on October 28 that year. Gursharan Singh, who won a

residential plot in Aero City, said: "My family waits for the development works to be finished,

so that we can move into the city and start developing the allotted plot. But the wait has gone

very long, even though we have paid all the dues."

The buyers of 750 residential plots under this Gmada scheme were promised possession by

November 2017. However, they continue to wait for the development authority to hold a draw

of lots for numbering each property before a possession could be given.

The people who received 256-sq-yd plots got their letters of intent (LOI) in November 2016.

Industrial plot winner G K Mehta said: "My company is waiting to start the venture ever since

the LOI reached us but there has been no progress since in giving us the possession of the plot.

When Gmada has taken the full payment from us, it should take pains to hand us the plots in

time. Secondly, Gmada was supposed to lay a high-fidelity optical fibre network for high-speed

internet for the IT business. It remains pending."

Confronted, Gmada additional chief administrator Rajesh Dhiman said: "The tendering process

for development work is complete and the authority is all set to allot the work orders. In some

cases, the work orders have been allotted already."



Link https://realty.economictimes.indiatimes.com/news/industry/greater-mohali-development-body-delays-possession-of-three-projects/72048335

________________________________________________________________

Prestige Estates' net profit up 14% at Rs 110.6 crore in Q2 FY20

Its net profit stood at Rs 88.1 crore in the year-ago period, Bengaluru-based developer

said in a regulatory filing

Realty firm Prestige Estates today reported 21 per cent increase in its consolidated net profit at

Rs 107.1 crore for the fourth quarter of last fiscal on higher sales.

Its net profit stood at Rs 88.1 crore in the year-ago period, Bengaluru-based developer said in a

regulatory filing.

Total income rose by 27 per cent to Rs 1,861.6 crore in the January-March quarter of 2017-18

fiscal from Rs 1,463.3 crore in the corresponding period of the previous year.

During the full 2017-18 financial year, the company's net profit increased to Rs 371.3 crore

from Rs 264.9 crore in the previous year.

Total income also went up to Rs 5,566.5 crore during last fiscal from Rs 4,861.7 crore in the

2016-17 fiscal. The company also plans to raise up to Rs 350 crore through issue of debentures.

The board approved issuance of non-convertible debentures for an overall aggregate amount of

Rs 350 crore on private placement basis. It recommended payment of final dividend of Rs 1.2

per share for last fiscal.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/prestige-estates-net-profit-up-14-at-rs-110-6-crore-in-q2-fy20/72053882

Mumbai: Building repairs stuck as funds remain locked in PMC

Bank

A woman depositor of PMC Bank, who had demolished her 50-year-old house in Mulund

in the hope of building a bungalow, is now left in the lurch too.

Repair work of a few buildings at Highland Park in Mulund Colony has almost come to a

standstill lately as the society has around Rs 60 lakh deposits locked in Punjab and Maharashtra

Cooperative (PMC) Bank. Withdrawal limit for PMC Bank depositors is capped at Rs 50,000.

A few housing societies in Andheri (East), too, have their funds locked in PMC Bank and the

committee members are facing major hurdles in running daily operations, including paying

salaries to security and other staff and for maintenance of the building.

A woman depositor of PMC Bank, who had demolished her 50-year-old house in Mulund in the

hope of building a bungalow, is now left in the lurch too.

―It is a major setback to several societies in our area that have at least Rs 40 lakh to Rs 60 lakh

in PMC Bank. The amount was deposited to earn interest on it for day-to-day society expenses,‖

said Chandrashekhar Parab, secretary of the B-Wing of Highland Park which is undergoing

repairs. The building has a bamboo scaffolding which came up in July to carry out external

repairs and plaster.

Parab said, ―We got a shocker in September on learning that the bank had blocked withdrawals

for depositors. Our building was up for repairs.‖ The society somehow managed with funds

from another bank but Parab said the going is ―really tough. We are calling for an SGM soon to

decide what to do with the repairs and whether to curtail some expenses‖.

Housing societies in the vicinity have similarly suffered. Anmol Bhushan from E-Wing of the

complex said, ―We have six more buildings in the complex with at least Rs 40 lakh in bank

deposits and they are all struggling with daily society expenses. We have to pay for the security,

other staff, maintenance of the building and petty repairs.‖

The bank had initially allowed Rs 1,000 withdrawal and subsequently raised the limit to Rs

50,000. ―It is not enough,‖ said a society member.

It is alleged that the bank management did not disclose huge loan defaults by HDIL group

firms.

Senior experts in the cooperative societies sector have advised depositor housing societies to put



Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-building-repairs-stuck-as-funds-remain-locked-in-pmc-bank/72048152

a joint claim on HDIL lands in Palghar and Vasai that have been attached by the EOW in the

bank scam to earn their deposits back with interest. This, they say, will help societies restart

their repair, maintenance and development works.

Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association, said: ―The 2,100-acre

HDIL land on the outskirts of Mumbai (in Palghar and Vasai) is estimated to be worth over Rs

15,000 crore. The bank can easily manage to get its Rs 6,000-7,000 crore back by selling it.‖

Prabhu added all depositors must form an association to jointly make a claim.

In some of the socieities in Andheri (East), residents had contributed Rs 1,000 each to create a

special fund to ensure daily expenses are not hit, said Clifford D‘Souza of the core group of

depositors who are fighting to get the money locked in the bank.

―At least four to five housing societies near Poonam Nagar in Andheri have deposits of nearly

Rs 2-3 crore in the bank branch. Daily society operations are a huge problem,‖ he said.

Usha Mandhotra was in tears the day the bank went into a crisis. She had got her 50-year-old

house on Guru Gobind Singh Road in Mulund West razed to rebuild it. ―I had saved hard-

earned money in the bank which offered good interest rate and I was confident of constructing a

beautiful new home. But with the bank accounts locked, making any payments for

reconstruction is difficult,‖ she said.

The Reserve Bank of India-appointed administrator at PMC Bank has plans to auction attached

properties of HDIL directors held in the loan fraud case to provide relief to over nine lakh

depositors. The administrator has already written to EOW, probing the Rs 6,500-crore loan

fraud case, to release the properties.

________________________________________________________________

Work on Phase-IV of Delhi Metro to begin by November-end

The Phase IV project comprises six corridors with a combined length of nearly 104

kilometres.

After a delay of more than three years, construction of Delhi Metro‘s Phase IV project is finally

going to start by the end of this month.

The first civil contract of Delhi Metro Rail Corporation‘s (DMRC) Phase IV project has been

awarded for the construction of a portion of Janakpuri West – R K Ahsram Marg corridor,

which is an extension of the Magenta Line (Botanical Garden-Janakpuri West).

The contract includes construction of a portion of the Janakpuri West – R K Ahsram Marg

corridor with ten stations -Keshopur, Paschim Vihar, Peeragarhi, Mangolpuri, West Enclave,

Pushpanjali, Deepali Chowk, Madhuban Chowk, Prashant Vihar and North Pitampura. This was

also the first Phase IV tender to be floated by DMRC.

―The given work involves the part design and construction of elevated viaduct, elevated ramp,

siding line and station buildings,‖ a DMRC spokesperson said. ―The work on this corridor is

expected to commence by end of November and is scheduled to be completed within 30 months

from the commencement,‖ he said. The 28.9 km long Janakpuri West–R. K Ahsram Marg

corridor, Phase IV‘s longest, will come up with 22 stations.

The Phase IV project comprises six corridors with a combined length of nearly 104 kilometres.

While the Delhi government had approved all the six proposed corridors in December last year,

three priority corridors comprising 61.6 km were approved by the Centre in March this year,

including the Janakpuri West-RK Ashram Marg corridor. The other two corridors are Aerocity

– Tughlakabad (20.2 km) and Majlis Park – Maujpur (12.5 km).

―The Delhi Metro is currently engaged in the preparatory works for three approved corridors of

Phase IV, under which 61.6 km of new Metro lines shall be constructed across three different

corridors comprising of 46 Metro stations,‖ the spokesperson said. ―These new sections shall

provide inter-connectivity among the already operational sections of Delhi Metro,‖ he said.

The Janakpuri West-R K Ashram Marg corridor would provide direct connectivity between

west, northwest and north Delhi. The corridor will start from the Janakpuri West station, which

is already an interchange station with the Blue Line (Dwarka-Vaishali/Noida City Centre) and

Magenta Line (Janakpuri West-Botanical Garden) meeting here. The corridor will cross the

Green Line (Inderlok-City Park) once at Peeragarhi and will cross the Pink Line twice at Majlis

Park and Azadpur.

This corridor also crosses the Red (Shaheed Sthal New Bus Adda-Rithala) and Yellow Lines



Link https://realty.economictimes.indiatimes.com/news/infrastructure/delhi-metro-phase-iv-work-to-begin-by-november-end/72055677

(HUDA City Centre-Samaypur Badli) twice at Pitampura and Pul Bangash and Haiderpur Badli

Mor and Azadpur, respectively before terminating at R K Ashram Marg station on Blue Line.

At nine stations, this corridor will have the highest number of interchange points in Phase IV.

________________________________________________________________

Documents

--Nov Oct--2019 - Credai Bengalcredaibengal.in/wp-content/uploads/2019/11/15Nov19-CB... · 2020-02-28 · processes during development plan and building plan sanction. The ... The