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10-Oct-2019 16-Nov-2019
CREDAI Bengal Daily News Update | 16.11.19
Four real estate companies have approached to avail bailout fund:
FM
The Alternative Investment Fund (AIF) comprises of Rs 10,000 crore coming from the
government and the remaining being provided by state insurer LIC and the country's
largest lender SBI.
Finance Minister Nirmala Sitharaman on Friday said four real estate companies from three
cities, Mumbai, Bengaluru and Hyderabad, have approached to avail Rs 25,000 crore bailout
fund. More companies are likely to approach the nodal agency for taking benefit of this window
from next week, she said.
Earlier this month, the government approved a Rs 25,000 crore fund to help complete over
1,600 stalled housing projects, including ones that have been declared NPAs or admitted for
insolvency proceedings in a bid to boost growth by steering consumption in real estate and
associated sectors.
The Alternative Investment Fund (AIF) comprises of Rs 10,000 crore coming from the
government and the remaining being provided by state insurer LIC and the country's largest
lender SBI.
The fund, to be set up as Category-II AIF registered with SEBI, will be managed by SBICAP
Ventures Limited.
The AIF, which was first announced by the Finance Minister on September 14, will act as a
'special window' to provide loans to over 1,600 incomplete affordable and middle-lower income
housing projects.
She further said that she will be holding a meeting with banks next week to assess their lending
to the NBFC sector.
The ministry will seek disaggregated data on how much funds have been given to AAA-rated
NBFCs and NFBCs rated below AAA and also seek details from RBI and PSU Banks on funds
given to AAA-rated NBFCs, investment-grade NBFCs, she added.
________________________________________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/four-real-estate-companies-have-approached-to-avail-bailout-fund-fm/72080000
New IBC rules to cover financial service providers
Financial service providers are ordinarily not covered under the Insolvency and
Bankruptcy Code.
The government has put out detailed rules for the resolution of systemically important financial
service providers under the bankruptcy law, opening the doors for resolution of stressed non-
banking finance companies under this framework.
Financial service providers are ordinarily not covered under the Insolvency and Bankruptcy
Code. Under the rules notified, the code can be invoked to find a resolution for stressed finance
companies such as Dewan Housing Finance Corporation Ltd. (DHFL). These rules will not
apply to banks.
Separately, the government will notify specific categories of financial service providers that do
not fall under the systemically important category to be resolved as ordinarily applicable to
corporate debtors.
―The government will notify specific categories of FSPs that do not fall under the systemically
important category and shall be resolved under the normal provisions of the Code as ordinarily
applicable to corporate debtors,‖ it said in a release, adding that the special framework will not
apply to banks.
This will be decided in consultation with the appropriate regulators, which, in most cases,
would be the Reserve Bank of India.
The rules were issued under Section 227 of the IBC, which allows the Central government to
notify FSPs or categories of FSPs for the purpose of insolvency and liquidation proceedings.
Corporate affairs secretary Injeti Srinivas said the special framework is essentially aimed at
serving as an interim mechanism to deal with any exigency pending the introduction of a
fullfledged enactment to deal with the resolution of banks and other systematically important
financial service providers.
The government will introduce the Financial Resolution and Deposit Insurance Bill in
parliament in the winter session.
Under the framework, the Corporate Insolvency Resolution Process will be initiated only on the
application of the appropriate regulator. The National Company Law Tribunal will appoint an
administrator proposed by the regulator for financial service providers admitted into insolvency
Newspaper/Online ET Realty(online)
Date November 16, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/new-ibc-rules-to-cover-financial-service-providers/72080044
proceedings and will take on the management of the company, accept or reject claims of
creditors and handle liquidation proceedings.
Under the framework, approval of any resolution plan will also require the administrator to seek
‗no objection‘ from the regulator regarding the persons who will take over the management of
the FSP.
The regulator shall issue ‗no objection‘ on the basis of the fit and proper criteria applicable to
the financial service provider.
Experts said the framework will likely bring more interest in the resolution of distressed NBFCs
such as DHFL. ―A housing finance company like DHFL which is stressed and not getting
resolved may be admitted for insolvency resolution. This framework will allow external buyers
to enter,‖ said Manoj Kumar, a partner at law firm Corporate Professionals, adding that the
framework will provide potential players interested in acquiring DHFL assets immunity from
potential liabilities arising from investigations by government agencies.
________________________________________________________________
Unregistered residents' association can't make plaint with us:
Gujarat RERA
In absence of registration of association, the residents or allottees of the houses can file
complaints in individual capacity or through power of attorney.
In an important order, the Gujarat Real Estate Appellate Tribunal has said that if a group of
residents wants to file a complaint against a builder with the Gujarat Real
Estate Regulatory Authority (RERA), the group is required to be a registered association first.
In absence of registration of association, the residents or allottees of the houses can file
complaints in individual capacity or through power of attorney. The tribunal‘s verdict has come
as a warning for the residents of a newly constructed housing scheme that they should insist the
builder to form and register the association as soon as possible so that they can formally file a
complaint with RERA about the project.
In this case, some twenty allottees of a residential scheme in Vadodara formed an association –
Crystal Yaghnapurush Residential and Owners‘ Association. It was not a registered association.
It filed a complaint against the builder of the scheme, Manish Patel, about incomplete project
and that the clubhouse and various facilities were not completed.
On November 5, RERA passed an interim order asking the builder to complete the project in
two months by increasing the manpower at the site. RERA gave notice to complete pending
work at the earliest or provide the compensation to the residents.
The builder challenged the order before the tribunal and his advocate Vishal Dave submitted
that the association is not a registered one. According to Section 11(4)(e) of the Real Estate
(Regulation and Development) Act 2016, the promoter should enable the formation of an
association or society or cooperative society of the allottees, or a federation of the same.
Without a registered association, RERA cannot entertain the complaint of a group.
The tribunal accepted the argument and said that the complaint was not maintainable. The
tribunal further said that the complaint must not be allowed to fail due to technical grounds, and
it gave the group time till December 31 to amend the complaint by permitting each of the
members to file a complaint in an individual capacity.
________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/unregistered-residents-association-cant-make-plaint-with-us-gujarat-rera/72079979
Chandigarh civic body to convert its leasehold properties to
freehold
The civic body has over Rs 500-crore worth commercial properties, which it could neither
sell nor rent out despite multiple efforts.
In a major decision, the general house of the municipal corporation on Thursday resolved to
convert all its leasehold properties to freehold. A proposal will be sent to the UT administrator
for consideration and approval.
The civic body has over Rs 500-crore worth commercial properties, which it could neither sell
nor rent out despite multiple efforts. The MC had been claiming that people were not interested
in taking leasehold properties.
The development has come a week after a delegation of councillors met UT administrator VP
Singh Badnore at Raj Bhawan for financial aid. They raised the issue and Badnore asked them
to take it up in the house and send him the proposal for examination.
The move is significant as it will help civic body tide over financial crisis. The MC had been
making efforts for the past about 10 years to sell or rent out these properties, but failed to attract
people. These commercial properties include showrooms, a hospital site and booths in different
markets. All these properties are situated at prime locations.
There are over 105 booths in Mauli Jagran, 20 shop-cum-flats (SCF) in Manimajra worth Rs 68
crore, 40 booths in Sector 17, booths of fish market in Sector 41, among others. The hospital
site in Manimajra is worth Rs 81 crore. The authorities have spent crores of rupees on the
projects.
Key properties
1: A private hospital site spread over 2.74 acres in Manimajra
2: Around 105 booths in Mauli Jagran
3: Twenty SCFs in Manimajra
4: Forty booths in Sector 17
5: Air-conditioned booths in Fish Market, Sector 41
Newspaper/Online ET Realty(online)
Date November 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-civic-body-to-convert-its-leasehold-properties-to-freehold/72069138
‘Admn discourteous to us’
Councillors on Thursday raised the issue of disrespect to them in events held by the Chandigarh
administration. They unanimously resolved to write to the UT adviser. They said they were not
being invited to the programmes of their wards and their names were missing from the plaques.
Even the mayor was being deliberately ignored by the UT engineering department, they added.
The mayor said he had already taken up the issue with the adviser.
________________________________________________________________
SC receiver asks NBCC to start eight Amrapali projects
The Supreme Court had about a year ago asked the state-run builder to complete 16
projects of the Amrapali group.
The Supreme Court-appointed receiver has asked NBCC (India) to start work on eight more
stuck projects of the Amrapali Group, a move that will offer relief to more than 9,300
homebuyers in Noida and Greater Noida.
The Supreme Court had about a year ago asked the state-run builder to complete 16 projects of
the Amrapali group. It has completed work on two of those, which will be handed over soon to
the court receiver.
―The court receiver has asked NBCC to proceed with tenders in order to commence the work by
the end of January 2020. He has also asked the company to furnish with him the details of the
tender processes in order to facilitate the working of the payment schedule,‖ said a person in the
know.
The receiver has given a list of eight projects having 9,306 flats. The cost of the current
package, including towards project management consultancy and GST, is about Rs 570 crore.
The projects are Zodiac, Sapphire One and Two, Silicon City Phase One and Two, Centurian
Park, Centurian Park Valley and Princely Estate.
―A meeting was held on November 11 and a day after the receiver wrote to the CMD (chairman
and managing director of NBCC) to start work on these project as part of phase one. Rest of the
projects will be taken up later,‖ said another person.
The projects that the Supreme Court asked NBCC to take over at Noida and Greater Noida are
expected to cost Rs 8,361 crore to complete.
The court had appointed R Venkataramani as the receiver to coordinate among all the
stakeholders and ensure completion of the projects for homebuyers.
The first two projects that NBCC took over, Eden Park and Castle, will soon be ready for
handing over to the receiver. Work on firefighting equipment, sewage treatment plant, waste
treatment plant and the final paint work in some of the flats of these two are nearing completion
The flat owners are expected to start registration from next month, almost six years after they
moved in to the flats.
They have so far been living there without some of the basic facilities.
More than 40,000 buyers were stuck with under-constructed projects after the Amrapali Group
was dragged to court for alleged fraud and money laundering.
Newspaper/Online ET Realty(online)
Date November 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-receiver-asks-nbcc-to-start-eight-amrapali-projects/72080013
_______________________________________________________________________________________________
South Delhi civic body penalises violators for dumping construction
waste
On Wednesday, officials from the civic agency caught five such defaulters and shared
their details with the Delhi Pollution Control Committee.
South Delhi Municipal Corporation has initiated a special drive to penalise violators
dumping construction and demolition waste in the open during the night.
On Wednesday, officials from the civic agency caught five such defaulters and shared their
details with the Delhi Pollution Control Committee.
―Despite clearly mentioning the sites where people can dump their construction and demolition
waste on our website, there have been massive violations. People have been dumping waste
near open or isolated site within 10 minutes and it is really difficult to catch them red-handed.
During Wednesday night, however, patrolling was carried out and our teams found five people
dumping waste in open. We took the details of their vehicles, owners and forwarded the
information to DPCC, said a senior SDMC official.
The south civic body has undertaken strict action against them as they were in violation of
environment norms. ―Similar drive will be carried in the future,‖ the official added.
SDMC claimed to have filed 611 FIRs against violators, issued 6,953 challans and imposed a
fine of Rs 2.9 crore over the course of October.
―With Delhi‘s air quality slipping back to the ‗severe‘ range, the south civic body is intensively
following the Graded Response Action Plan. Officers have been asked to stimulate their efforts
and instruct the staff to pull up their socks,‖ the official said.
Of the total challans, the maximum number — 3,424 — was issued for dust pollution arising
from unpaved and broken roads. In garbage burning cases 1,802 challans were served resulting
in fine of Rs 2.93 crore.
Apart from its 57 water tankers, the South Delhi Municipal Corporation has deployed 40
additional tankers to control dust pollution. ―Over 90 water tankers have been deployed for this
purpose and 24 mechanical road sweepers are also involved in cleaning the road and collecting
dust,‖ the official added.
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/south-delhi-civic-body-penalises-violators-for-dumping-construction-waste/72072859
HC sends notices to Haryana govt, HUDA, MCG over unauthorised
construction
The electricity, water and sewerage connections given to such unauthorised constructions
should been snapped and no fresh connections should be given to check the menace, it
suggested.
The Punjab and Haryana high court has issued notices to the state government, department of
town and country planning (DTCP) and other government agencies over unauthorised
construction in new sectors.
The notices were issued over a PIL filed by a Gurugram resident alleging active connivance of
the government officials and local land mafia leading to a mushrooming of illegal structures
which are adversely impacting the environment and causing air pollution.
Worried over unplanned development in the new sectors which threaten to compromise the
overall development of the area going against the Gurugram-Manesar masterplan, 41-year-old
Bhupender Pratap Singh, resident of Sector-67, filed a PIL against Haryana government, DTCP,
MCG, DHBVN, HUDA and 12 people from Maidawas and Ullawas villages for illegal
construction. The petition also attached the photographs of the unauthorised constructions.
It appealed for an immediate ban on and demolition of the illegal and unauthorised
constructions. ―Take action against the officials who have turned a blind eye to the illegal
constructions. Form a monitoring committee to provide complete list and details of all such
unauthorised constructions existing or being carried out in various areas of Gurugram,‖ said
counsel for petitioner, Jigyasa Tanwar.
The electricity, water and sewerage connections given to such unauthorised constructions
should been snapped and no fresh connections should be given to check the menace, it
suggested.
Gurugram falls under the Controlled Areas Act which means unplanned development cannot
take place in the city. However, lately, it has come to notice that rampant unauthorised
construction and encroachment, beyond the permissible limits and in violation of the rules is
being carried out in various areas of the city.
The petition also pointed out that the illegal constructions have also encroached upon the public
land, roads, pavements, green belts and create traffic bottlenecks.
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/hc-sends-notices-to-haryana-govt-huda-mcg-over-unauthorised-construction/72070912c
The situation is even worse in the villages which are adjacent to sectors of Gurugram city like
Sikanderpur, Chakkarpur, Nathupur, Khandsa, Ghata, Wazirabad, Dundahera, Chauma,
Maidawas, Badhshahpur, Ulahwas, Maidawas, Dhanwapur, Fazilpur-Jharsa, Dhanwapur, and
some others, where many property owners have constructed up to eight floors in absolute
violation of building norms.
When TOI contacted officials of DTCP, MCG and Huda they said they are going through the
content of the petition and they will file their reply in court.
________________________________________________________________
Property tax may be hiked in coming days in Ludhiana: Sources
However, sources revealed that hike in property tax is also expected in the coming days,
along with announcement of a revised one-time settlement policy (OTS) for illegal
structures.
In order to come out of the financial crisis, the civic body is now eyeing at interest waiver on
pending water supply and sewerage dues, and property tax, as many people were not paying
their dues for fear of high interest rates.
Mayor Balkar Sandhu has requested the local bodies minister Brahm Mohindra to announce the
same shortly. He is requesting senior party leaders to meet the minister and request him for an
early announcement, so that MC can generate some funds for development works in the city.
However, sources revealed that hike in property tax is also expected in the coming days, along
with announcement of a revised one-time settlement policy (OTS) for illegal structures.
The civic body is managing with great difficulty the salary of employees, and it is totally
dependent on GST share, which comes through the state government. The payment to
contractors for works done till August last year has been cleared, but more than one-year
payment is pending from the civic body.
It is because of this reason that contractors do not show interest in doing work for the civic
body, and residents suffer when development works are pending. On Thursday, MLA Surinder
Dawar met Mohindra on Sandhu‘s request, and asked the minister for announcing the rebate or
waiver of interest.
Dawar said, ―If we have to ask the mayor for ward works in our constituencies, then there is no
harm in raising his voice at the government level. I met the minister and requested him to
announce the interest waiver.‖ He said every government has given relaxation in interest on the
actual amount because people are not ready to clear their dues, fearing higher interest, so it will
also help the civic body recover pending dues from defaulters.
Sandhu said in his last meeting in Chandigarh, the minister had assured him of announcing the
waiver soon, and he is also working on finalising the OTS for illegal buildings. He said cabinet
minister Bharat Bhushan Ashu had also asked Brahm Mohindra to hike property tax rates
because in some sectors, rates are too low, and the civic body is bearing the loss. He also
claimed there were chances now that property tax would be imposed on quarters and other
commercial properties.
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/property-tax-may-be-hiked-in-coming-days-in-ludhiana-sources/72072183
Notably, since the Congress came to power in the MC general house and Sandhu was elected
mayor, development works remained on the back-burner at a time when even paying staff
salaries had become a herculean task for the civic body.
Though salaries have become smooth now, when it comes to carry new development works in
the city, the civic body is still in a tight position. For routine works like road marking on city
roads ahead of the foggy weather, the civic body relied on Smart City funds, just because they
did not have the funds for it.
TRIP TO KARTARPUR SAHIB
Mayor Balkar Sandhu has issued letters to all 95 councillors for filling in a registration form if
they are willing to go to Kartarpur Sahib in Pakistan in the coming days. Sandhu said he wanted
all councillors to take blessings at the holy shrine, and those who wanted to go should begin the
registration process. He said councillors would have to bear the fee expenses, but he would
arrange free transportation and food for them.
________________________________________________________________________________________________
Pune: Residents of 40 villages in Purandar taluka to get property
cards
The residents who lacked formal ownership records and documents except tax receipts
issued by the gram panchayats would finally have these cards, stated sources in the
settlement commissioner’s office.
The aerial survey of rural land in 40 villages in Purandar taluka over, the residents are set to
get property cards soon.
The residents who lacked formal ownership records and documents except tax receipts issued
by the gram panchayats would finally have these cards, stated sources in the settlement
commissioner‘s office.
According to the senior officials of the state government, the data of the aerial photos taken by
drones is being matched with the data of Survey of India and that with the gram panchayat.
Drone-mapping was undertaken in villages in Nagpur, Pune, Aurangabad and Ahmednagar
districts in the state. Forty drones were sanctioned by the state government for the aerial survey
of rural land. About Rs57 crore was sanctioned for the first phase. The survey will help generate
property cards for nearly 39,000 villages in the state.
The sources in the state settlement commissioner‘s office stated that the drone survey would not
map the lands just horizontally, but also vertically to ensure maximum accuracy. It can be used
for laying water and drainage lines.
The project would be rolled out in phases over three years. Three villages in Pune and
Aurangabad would be mapped first, said an official.
The Rs 373-crore project is set to ensure property cards for all residential and other properties in
gaothans (residential areas in villages) in 39,000 villages. The exercise will cover around two-
thirds of Maharashtra‘s population. The state cabinet approved it last year.
A Survey of India‘s drone was used last year in a pilot project at Sonori village in Pune‘s
Purandar taluka.
Surveys of gaothans are undertaken once they cross a threshold population of 2,000. But just
3,931 of the over 43,000 villages in Maharashtra have been surveyed manually in over 50 years
since the Maharashtra Land Revenue Code, 1966, was approved. The mapping is done to gauge
privately-owned and government properties, barren plots and open lands.
________________________________________________________________
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/pune-residents-of-40-villages-in-purandar-taluka-to-get-property-cards/72068741
Standing panel chief tells Nagpur civic body to improve tax
recovery or face action
In the seven months of this financial year, the civic body has generated only Rs 125 crore
as against the target of Rs 452.69 crore.
Standing committee chairman Pradip Pohane has expressed anguish over poor revenue
generation by the civic administration. The main source of the NMC‘s revenue generation
is property tax.
In the seven months of this financial year, the civic body has generated only Rs 125 crore as
against the target of Rs 452.69 crore. As compared to the last fiscal in the same period, the
NMC had generated Rs 101 crore, the department informed the standing committee members in
its meeting held on Thursday.
Not satisfied over this, Pohane asked the civic administration to improve property tax recovery.
He directed the department to felicitate employees who are performing well in terms of property
tax recovery. However, Pohane asked the department to identify those employees who are poor
at their performance and punish them.
The standing committee gave nod to 45 proposals submitted by the administration, including
change of ownership of 86 properties in the name of NMC. Owners of these properties in
Satranjipura zone had defaulted property tax to the tune of Rs 57.61 lakh. Though NMC tried to
auction these properties three times, it found no bidders.
The panel gave nod to accounts and finance department‘s proposal to make provision of Rs
42.56 crore for many projects, including acquiring land for Sonegaon lake beautification (Rs
14.46 crore), Rs 5.10 crore for land acquisition for Pardi flyover in Bhandewadi and Rs 15 crore
payment to OCW as part of fourth one-time settlement.
It also cleared hotmix department‘s request to purchase four tippers costing around Rs 76 lakh
through e-tender process. Other proposals which were cleared were related to appointing two
firms for marketing and selling of its market complexes at Budhwar Bazaar (Mahal), Budhwar
Bazaar (Sakkardara), Kamal Chowk (Pachpaoli), Sokhta Bhavan (Gandhibagh), Rs 1.10 crore
financial provisions to purchase stationery, lab equipment and furniture for its 128 primary
schools, 29 secondary and four junior colleges, Rs 1.04 crore to purchase suction-cum-jetting
machine etc.
Transport committee chairman Bunty Kukde on Thursday convened transport committee‘s
meeting and expressed concern over less number of passengers travelling in city buses. He
advised the department to take necessary steps to appeal to citizens to commute in Aapli buses.
Kukde asked the department to submit a proposal on waiving off royalty of 60 bus shelters
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/standing-panel-chief-tells-nagpur-civic-body-to-improve-tax-recovery-or-face-action/72064120
which were removed due to ongoing construction of cement roads and metro rail works before
the committee.
________________________________________________________________
Chandigarh: Residential plot in Sector 33 auctioned for Rs 15.30
crore
The UT administration’s estate office on Wednesday started the e-auction process of
properties in the city.
The 1014 square yard plot (which is around 1.5 kanal) in Sector 33 was auctioned for Rs 15.30
crore against the reserve price of Rs 7.53 crore, in the auction of properties by the UT estate
office. The two day process of e-auction was completed on Thursday evening.
The UT administration‘s estate office on Wednesday started the e-auction process of properties
in the city. The estate office had put up properties — 11 residential, 14 commercial and one
industrial — on auction for two days, ie, November 13 and 14.
While there were no takers for commercial and industrial properties, the estate office earns Rs
44.05 crore from the auction of 11 residential properties. The total reserve price of residential
properties was Rs 27.59 crore.
According to market experts, there were buyers for residential properties as all of them were
freehold and anyone who buys them will not have to 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 was Rs 15.1 crore and Rs 33
crore respectively, but they did not find any takers. As these were leasehold, buyers didn‘t come
forward for them.
All residential properties were in southern sectors. One of them was a built-up house on a four-
marla plot in Sector 32A, which auctioned for Rs 1.68 crore against the reserve price of Rs one
crore.
The remaining properties were plots, whose reserve prices range from Rs 1.25 crore to Rs 7.53
crore. They were 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.
The estate office had also extended the last date for registration of e-auction. Earlier, the last
date for registering e-auction was October 31 and it was later extended to November 10.
An official said that a help desk was also set up at the estate office for residents wishing to
participate in the auction.
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/chandigarh-residential-plot-in-sector-33-auctioned-for-rs-15-30-crore/72067685
The last auction was held in February this year when estate office had earned Rs 28 crore after
auctioning 10 residential properties.
________________________________________________________________
Odisha Co-operative unable to complete Dhauli Heights owing to
funds crunch
The body had taken up the project in a public-private-partnership mode in 2013.
The Odisha Co-operative Housing Corporation Limited has expressed its inability to complete
a housing project — Dhauli Heights — at Tomando owing to funds crunch and litigations,
putting 52 families who had booked flats there in a spot of bother
The body had taken up the project in a public-private-partnership mode in 2013.
In a letter to the department, the corporation said it would not be able to complete the project on
its own. ―The corporation is not in a position to bear any compensation to the homebuyers,‖ it
stated. The body said it wouldn‘t be able to bear the compensation in future as well.
Of the 54 flats (different types) available under the project, 52 had been booked.
The corporation had taken money from the buyers when the project was taken up. The flats
were supposed to be handed over to the buyers in December, 2016, as per the agreement.
However, the project was yet to be completed. Each buyer had paid between Rs 17 lakh and Rs
40 lakh.
―We have enquired into the matter and have all the details now. We will deliberate with our
officials to find out a solution. We will provision funds and complete the project if required,‖ a
senior cooperation department official said.
As work on the project has already begun, any delay in completion would adversely affect the
structure of the building. This may also escalate the project cost.
―The loss arising out of any escalation shall be borne by the corporation. This will affect the
financial health of the corporation, which is already in a bad shape,‖ it added.
Sources said the corporation had entered into an agreement with a private real-estate developer
— Ma Plaza — for the project. But the corporation decided to abort the contract as the private
agency had allegedly caused delay in completing the project.
Sources added that the private players later filed a writ in the Orissa High Court, resulting in the
stay of the project.
―They had collected about Rs 13 crore from us and started the project. When some of us
approached them because of the delay in handing over the flats, they avoided our queries. Later,
we found out that the corporation had problems with the private party. Where is our mistake in
this?‖ asked N Siva Shankar, one of the homebuyers.
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/odisha-co-operative-unable-to-complete-dhauli-heights-owing-to-funds-crunch/72068978
Shankar added that it was a scam. ―We have approached different forums, including grievances
cells of the chief minister and the prime minister. When we approached the Odisha Real Estate
Regulatory Authority with our complaint, they issued an order, asking the corporation to refund
the money with interest. However, it did not comply with the order,‖ he said.
―I have invested all my life savings in the flat, hoping for a house in a city like Bhubaneswar.
We are a middle-class family. I have been running from pillar to post to get justice and I don‘t
know what to do to get the money back,‖ said Prafulla Behera. Behera had paid Rs 40 lakh for a
flat.
Another aggrieved homebuyer, Gokul Chandra Sahoo, blamed the state government for the
issue. ―It is our hard earned money. I hoped for a better house and comfortable living, but look
where it has got us into?‖ Sahoo said.
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Newspaper/Online ET Realty(online)
NSSCDCL compensates owners after houses razed for Nagpur
smart city project
The monetary compensation will be deposited in the accounts of house owners in three
installments.
The Nagpur Smart and Sustainable City Develop Corporation Limited (NSSCDCL) has paid
compensation to owners of houses which were razed in areas — Pardi, Bharatwada, Punapur
and Bhandewadi — proposed under the Smart City project.
Seven houses were affected near Bhavani Mata Mandir. Six of them were razed and the
occupants shifted to rented accommodations. The rent will be paid by Nagpur Municipal
Corporation (NMC). The compensation includes providing a developed plot having an area
equal to 60% of the original plot and a house having equal area to the one demolished.
The monetary compensation will be deposited in the accounts of house owners in three
installments. The first installment will be deposited as soon as the owners sign a letter of
agreement on a stamp paper and submit it to the NMC.
The second installment will be deposited when the house is razed. The owners will get the third
one when they submit a clear title document (NA document and city survey record). So far, Rs
one crore has been deposited in the accounts of house owners.
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Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/nsscdcl-compensates-owners-after-houses-razed-for-nagpur-smart-city-project/72071440
No conversion charges for commercial plots in Delhi
Rajender Sharda, who heads the GK-I M-Block market traders’ association, said that
those who have already paid conversion charges should get a refund or the amount should
be adjusted in floor area ratio.
In a major decision that would benefit large number of shops in local shopping centres (LSC) in
areas such as Greater Kailash, Defence Colony, South Extension etc, the Delhi Development
Authority (DDA) in its meeting on Thursday provided exemption from conversion charges to
shops that were originally auctioned as purely commercial properties.
―DDA wanted to bring an amendment earlier in which shops using upper floors for commercial
use had to pay conversion charges. However, when the proposal was put in the public domain,
many people objected to it, saying the plots on which these shops are built were already
commercial and upper floors were only used for residential purposes temporarily,‖ a senior
DDA official said. ―These plots were originally sold as commercial plots at a premium and the
lease deed mentions that. Such shops wouldn‘t have to pay conversion charges,‖ he said.
―There is, however, another category of shops, such as those in Sarojini Nagar and Khan
Market, where upper floor was originally approved as residential. These shops will have to pay
conversion charges,‖ he said.
―Shops in LSCs in Defence Colony and South Extension were sold as commercial plots at
premium rates, and residential activity was allowed for a limited duration. Those who had paid
premium commercial rates shouldn‘t be made to pay conversion charge,‖ said Rajinder Malik,
president of Defence Colony market association.
Rajender Sharda, who heads the GK-I M-Block market traders‘ association, said that those who
have already paid conversion charges should get a refund or the amount should be adjusted in
floor area ratio.
Another important decision taken in the meeting, which was chaired by Delhi LG Anil Baijal,
was the exemption from some statutory clearances for household industries. Household
industrial units with maximum nine workers and 11 KW power operating in residential areas
and new industrial units of the similar type would not need to take mandatory statutory
clearances from labour and Industries departments and Delhi Pollution Control Committee
(DPCC), with the condition that no polluting industrial units will be permitted as household
industry.
Institutional category plots for schools, hospitals and socio-cultural organisations will now be
auctioned on freehold basis instead of as leasehold plots. ―With freehold plots, we now expect
Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/no-conversion-charges-for-commercial-plots-in-delhi/72068776
more developers to come forward,‖ the official said.
It will now be possible to amalgamate smaller residential plots into a bigger plot up to 200
square metres. ―The final proposal for amalgamation of two plots up to 200 square metres as
compared to 64 square metres existing in the Master Plan has been approved,‖ he said. Change
in the category of the land located in ash disposal area of Badarpur Thermal Power Plant also
got nod for the development of an eco-park.
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Dehradun civic body starts online property tax option for slum
dwellers
The slum residents will be able to pay the tax by logging on to the DMC website and filling
the form by the name ‘Malin Basti Property Tax Form’.
The Dehradun Municipal Corporation (DMC) has inaugurated the online facility for slum
dwellers to pay property tax from Thursday.
The slum residents will be able to pay the tax by logging on to the DMC website and filling the
form by the name ‗Malin Basti Property Tax Form‘.
The users will have the facility to upload all the required documents and after the payment, they
will be issued an e-receipt.
DMC Commissioner Vinay Shankar Pandey said, ―Due to some technical issues, we were not
able to provide this facility earlier, but from now onwards, residents of the slums will be able to
pay their house tax online. The slum dwellers still have the option to pay their house tax by
coming to the DMC office.‖
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Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/dehradun-civic-body-starts-online-property-tax-option-for-slum-dwellers/72071258
Newspaper/Online ET Realty(online)
Date November 15, 2019
Maharashtra: PWD directs local bodies to use 20% artificial sand
for infra projects
A senior state revenue department official said the policy regarding the use of artificial
sand, which is made out of crushed stones and boulders, was in place and the department
heads must implement it.
The public works department (PWD) on Wednesday directed all local authorities
in Maharashtra to use at least 20% crushed, artificial or manufactured sand for infrastructural
activities in their limits.
The government resolution (GR) in this regard was issued by the department under the guidance
of the governor. The GR stated that it was time to shift to environmentally viable options of
using artificial sand instead of the natural sand, which is excavated from rivers and creeks for
construction purposes, adversely affecting the environment.
A senior state revenue department official said the policy regarding the use of artificial sand,
which is made out of crushed stones and boulders, was in place and the department heads must
implement it.
―The excavation of sand from rivers has environmental implications, with riverside villages,
riverbeds and the ecosystem at large bearing the brunt. Due to this, erosion happens upstream or
downstream of water bodies due to change in the velocity of water flow, affecting the
riverbanks, land and structures. The groundwater and water table are also impacted due to the
excavation of sand,‖ geologist Suyog Jagtap from the Directorate of Geology and mining said.
Jagtap, also the former Pune district mining officer, was a part of the committee to decide on
use of artificial or manufactured sand. ―It is the need of the hour as vast infrastructure works are
being undertaken in the state,‖ he said.
―There is a need to increase awareness about use of artificial or manufactured sand among
people as this will help reduce the burden on sand excavation from the riverside. Especially in
the western parts of the state, most rivers are under tremendous burden as their river channels
suffer due to the excavation of sand, impacting their eco-system and environment at large,‘‘
Jagtap said.
Mahesh Makawana, associate professor in civil engineering from MIT College in Kothrud,
reiterated the use of artificial sand. ―Why just 20%, the artificial sand can be used for the entire
construction activity. It has been made mandatory in many states. As for the quality, the use of
artificial sand doesn‘t hinder the quality of construction in any way,‘‘ he said.
PWD officials alleged that powerful sand mining lobbies most often have links with politicians.
―People involved in illegal excavation of sand had also tried to mow down revenue officials
Link https://realty.economictimes.indiatimes.com/news/allied-industries/maharashtra-pwd-directs-local-bodies-to-use-20-artificial-sand-for-infra-projects/72064149
when they tried to stop them. These people violate all the norms, including the quantity of sand
to be mined and number of dredgers to be operated,‖ a PWD official said.
The cost of artificial sand depends on the distance from the site of the crushing to the end-use
location. ―If the site is nearby, the price is almost on par or close to that of natural sand,‖ the
official said.
Experts said the manufactured sand should be strongly recommended to be used in the real
estate sector. ―It is recommended as a substitute for river sand in production of concrete and
mortar mix, which can be used in any kinds of concrete member and masonry work in any
industry,‖ an expert said.
Several developers in Delhi, Mumbai, Pune, Bangalore, Chennai and Kerala have already
switched to manufactured sand in construction activities,‘‘ a city-based realtor said.
What can be gained?
As per experts, it is highly cohesive and compressive in strength. ―It has lesser impurities that
helps in producing better quality concrete. Nearly 30% increase in masonry strength can be
obtained obtained with the use of manufactured sand,‖ an expert said
Using manufactured sand also requires lower water-cement ratio, which also results in better
characteristics in the hardened state. ―Manufacturing sand also eliminates environmental impact
occurred due to lifting of natural sand from river bed,‖ the expert said.
________________________________________________________________________________________________
Facebook leases over 1.5 million sq ft office space in Hudson Yards
Hudson Yards is a $25 billion complex of commercial and residential skyscrapers built on
Manhattan's far west side above the rail yards.
Facebook Inc signed a lease for over 1.5 million square feet of office space across 30 floors and
three buildings in New York City's Hudson Yards, according to a statement by the luxury
and commercial real estate development on Thursday.
Hudson Yards is a $25 billion complex of commercial and residential skyscrapers built on
Manhattan's far west side above the rail yards.
"We're excited to expand our offices there starting in 2020", said John Tenanes, vice president
of Facebook's global facilities and real estate.
The deal includes about 1.2 million square feet in 50 Hudson Yards, about 265,000 square feet
in 30 Hudson Yards and about 57,000 square feet in 55 Hudson Yards, the statement added.
"It is yet to be determined which teams will be located in the new Hudson Yards location",
Facebook spokeswoman Jamila Reeves said.
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Newspaper/Online ET Realty(online)
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/facebook-leases-over-1-5-million-sq-ft-office-space-in-hudson-yards/72073461
Newspaper/Online ET Realty(online)
WeWork bond drops, spread hits a record on report of delayed
share tender
The Real Deal, citing anonymous sources, said Japan's SoftBank Corp has yet to
commence the tender offer that was part of a $9.5 billion rescue package for the money-
losing shared-office operator.
WeWork's junk bond price dropped and its risk premium shot to a record high on Thursday
following a report that its main backer still hasn't delivered on a plan to buy $3 billion of stock
from existing shareholders.
The Real Deal, citing anonymous sources, said Japan's SoftBank Corp has yet to commence the
tender offer that was part of a $9.5 billion rescue package for the money-losing shared-office
operator.
An investor who requested anonymity confirmed to Reuters that there have been delays, but he
had no more details.
"(The delays) will likely be resolved," the investor said in a text, asking not to be named
because the discussions between investors and SoftBank were confidential. "Lots of anxiety."
The We Company, owner of WeWork, told bondholders on Wednesday net losses in the third
quarter more than doubled to $1.25 billion as it added a record number of desks to its global
network but was unable to control rising costs.
SoftBank agreed in October to the rescue package that would result in it owning almost 78% of
WeWork if the tender were fully subscribed, according to a presentation to bondholders
reviewed by Reuters.
The tender was supposed to have begun five business days after an initial payment of $1.5
billion to WeWork was in place, The Real Deal said, citing a letter from SoftBank to WeWork
investors. The payment was made on Oct. 30, but sources told the publication that no tender
offer has been extended.
WeWork's 7.875% note due in May 2025 fell 2.25 cents on the dollar to a bid of 74 cents,
according to Refinitiv data.
The bond now yields a record 15.02% and its spread, a measure of the premium investors
demand for the added risk of holding WeWork's bond rather than safer securities like U.S.
Treasury debt, widened to a record 13.40 percentage points.
Losses have widened at WeWork as costs have outpaced the company's breakneck expansion,
which new management aims to curb after a disastrous effort to go public was shelved in
September.
Date November 15, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/wework-bond-drops-spread-hits-a-record-on-report-of-delayed-share-tender/72073565
A pipeline of existing leasing commitments suggests WeWork's rapid growth will likely
continue into 2020.
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