10-Oct-2019

06-Dec-2019

24-Feb-2020

CREDAI Bengal Daily News Update | 24.02.20

WEST BENGAL NEWS

New Town Kolkata development body adopts green buildings

practices

The New Town Kolkata Development Authority (NKDA), in consultation with enlisted

architects, structural engineers and other stakeholders, has adopted several

neighbourhood- and environment-friendly construction practices.

The New Town Kolkata Development Authority (NKDA), in consultation with enlisted

architects, structural engineers and other stakeholders, has adopted several neighbourhood- and

environment-friendly construction practices.

Some of the measures to be in place include preventing harmful effluents from piling rigs from

flowing into the sewerage and drainage lines, not allowing construction materials to be piled on

the blacktop portion of the roads and ensuring use of low-noise alternative machines for work

during the day instead of diesel engines or generators between 8pm and 6am.

Additionally, all under-construction buildings will have to be covered so that no dust, debris or

construction material fall outside the property boundary. Contractors will also have to ensure that

there is no water accumulation on the premises.

NKDA officials also suggested that to develop sustainable and eco-friendly buildings, reflective

paint could be used on rooftops to reduce room temperature by around 4°C to 5°C to reduce

power consumption.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/new-town-kolkata-

development-body-adopts-green-buildings-

practices/74258363?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-

24

OTHER NEWS

Housing finance companies may get one year extension for

restructuring loans

The move will not only bring NBFCs and HFCs at par with banks in treatment of loans

given for restructuring of real estate projects without downgrading the asset classification.

Financially sound non-banking finance companies (NBFCs) and housing finance

companies (HFCs) may be next in line to be permitted extension of the date of commencement

of commercial operations (DCCO) of project loans for commercial real estate by another one year

without downgrading the asset classification.

Official sources said that the Reserve Bank of India (RBI) extended this facility to banks after the

recently concluded meeting of the Monetary Policy Committee on February 6 and NBFCs and

HFCs may now be included in the scheme to allow completion of a larger number of viable real

estate projects that are delayed for reasons beyond the control of promoters.

The move will not only bring NBFCs and HFCs at par with banks in treatment of loans given for

restructuring of real estate projects without downgrading the asset classification, but also provide

a big relief to both commercial real estate and residential projects that were delayed on account

Newspaper/Online ET Realty (online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/allied-industries/housing-finance-

companies-may-get-one-year-extension-for-restructuring-loans/74264154

of regulatory issues.

It may be offered to companies such as LIC Housing Finance, PNB Housing and Shriram Finance

which have largely remained unaffected from the present liquidity crisis in the sector following

problems in IL&FS and DHFL.

As per RBI, commercial real estate (CRE) refers to all the real estate asset classes such as the

construction of commercial buildings, IT buildings and even residential structures for which

banks have lent loans to developers.

According to brokerage firm Emkay, the proposed extension of DCCOs to NBFCs and HFCs will

only have limited impact on the sector, as very few projects of existing NBFCs/HFCs opted for

the earlier one-year extension given by the RBI.

However, this can have a positive impact on NBFC/HFC stock prices that have been under some

pressure off late.

The expected extension of the facility to NBFCs and HFCs may not be an unlikely move from

RBI as even the previous circular on the same changes had been first made available to the banks

and was later extended to NBFCs/HFCs.

Banks and NBFCs/HFCs already have one-year extension window available (based on the

circular in 2015) for all CREs; however, the recent announcement after the MPC meeting

provides an additional one-year window to banks, which is currently not available for

NBFCs/HFCs.

________________________________________________________________________________________________

Central Bank of India plans to exit housing finance subsidiary

The bank holds 64.40 per cent in the unlisted housing finance company, while the

remaining stake is held by Housing & Urban Development Corporation (HUDCO), Unit

Trust of India (UTI) and National Housing Bank (NHB).

State-run Central Bank of India is looking to sell its entire 64.40 per cent stake in its housing

finance subsidiary - Cent Bank Home Finance (CBHFL), a top bank official said. The lender has

floated a request for proposal (RFP) for appointing merchant bankers. The shortlisted bankers

will help the lender scout for a potential investor to buy its stake in the mortgage financier.

"We plan to exit from Cent Bank Home Finance. The bank already provides housing loans, and

so, we feel that there is no need to have a housing finance subsidiary," Central Bank of India

managing director and chief executive officer, Pallav Mohapatra, told .

The bank holds 64.40 per cent in the unlisted housing finance company, while the remaining stake

is held by Housing & Urban Development Corporation (HUDCO), Unit Trust of India (UTI)

and National Housing Bank (NHB).

The bank is facing operational curbs under the Reserve Bank's (RBI) prompt corrective action

(PCA) framework.

Mohapatra said the process of determining the valuation of the Bhopal-headquartered home

finance company will begin as soon as the merchant bankers are appointed.

"Right now, it is difficult to say how much we will be able to realise through this disinvestment.

Once the valuation is done, we will be in a better position to assess the amount we can raise. But,

we expect a better valuation for CBHFL than its peers as it is a deposit-taking NBFC," he said.

In 2016, the bank had tried to sell its entire stake in CBHFL, but the deal could not be concluded.

It had then reported that another state-run Bank of Baroda had shown interest in buying a majority

stake in the mortgage lender. In 2016, the 64 per cent stake sale by the bank in its housing finance

subsidiary could have fetched nearly Rs 250 crore, experts had said.

CBHFL's net owned fund stood at Rs 111.57 crore as on March 31, 2019. Its advances stood at

Rs 1270.9 crore while deposits were at Rs 482.33 crore as of end March 2019.

During FY19, it reported a net profit of Rs 16.28 crore, with earning per share of Rs 6.51.

In the April-December 2019, it had reported a net profit of Rs 8.92 crore as against Rs 9.87 crore

in the first nine months of FY19. Its total assets stood at Rs 1,390.90 crore in the first nine months

of FY20.

Newspaper/Online ET Realty (online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/allied-industries/central-bank-of-

india-plans-to-exit-housing-finance-

subsidiary/74272741?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-

24

CBHFL was incorporated as 'Apna Ghar Vitta Nigam Ltd' and was subsequently renamed as 'Cent

Bank Home Finance Ltd'. It commenced operation in June 1991.

The home loan financier has presence in nine states through 18 branches.

Besides the sale of this strategic investment, the city-based lender is also in the talks to sell its

20 per cent stake in Indo Zambia Bank from where it is looking to garner around Rs 60 crore.

The other stakeholders in the bank include Bank of India (BoI) and Bank of Baroda (BoB) with

20 per cent stake each, and the Zambian government owning the balance.

"We are in talks with BoB and BoI to buy our stake in the bank," Mohapatra had told reporters

after the announcement of Q3 FY20 results.

The bank is also targeting to raise Rs 200 crore in the current quarter by monetising its real estate

properties.

In the quarter ended December, the lender reported a net profit of Rs 155 crore as against a net

loss of Rs 718 crore in the year-ago period.

The profitability was achieved due to better recoveries, higher income and reduction in cost,

Mohapatra had said.

The bank's recovery, including sale to asset reconstruction companies stood at Rs 1,273 crore.

Recovery in written off accounts was Rs 520 crore during Q3 of FY20.

It is expecting a good recovery in some of the stressed accounts such as Religare Finvest, Coastal

Energen Ltd and Flexi Tuff in the present quarter.

Gross non-performing assets (NPAs) in the quarter ended December reduced to 19.99 per cent

from 20.64 per cent, while net NPAs improved to 9.26 per cent from 10.32 per cent in the year-

ago period.

Mohapatra had said he expects net NPAs to come below 6 per cent by end this fiscal which will

help the bank to come out of PCA.

________________________________________________________________________________________________

Can't construct buildings around airport violating Navy rules:

Bombay HC

MPDA had rejected the Navy’s rules to regulate construction within a 4km radius around

the airport, which also serves as an airbase for the fighter jets and maritime reconnaissance

aircraft.

The high court of Bombay at Goa has come down heavily on Mormugao Planning and

Development Authority (MPDA) and a close acquaintance of panchayat minister Mauvin

Godinho for violating rules framed by the Navy for constructions around Goa international

airport.

MPDA had rejected the Navy’s rules to regulate construction within a 4km radius around the

airport, which also serves as an airbase for the fighter jets and maritime reconnaissance aircraft.

In an interim order, the high court has said the MPDA has no authority to reject the colour-coded

zoning map by the Navy to regulate construction around the airport.

A division bench of justices M S Sonak and M S Jawalkar also said that it was disturbing that one

of the petitioners, Chicalim deputy sarpanch Kamla Prasad Yadav, has “prima facie” carried out

construction in “defiance of 2015 rules”.

Yadav is a close aide of Dabolim MLA Godinha and both are members of MPDA, which granted

permission to builders including Yadav’s Venture Building Dreams to construct highrises within

the flight path of an aircraft.

Yadav’s real estate project has over 100 flats in two buildings.

On November 18, MPDA passed a resolution rejecting the Navy’s building rules. The body also

decided that construction permissions will continue to be granted based on the funnel area shown

in Vasco’s outline development plan.

“What is disturbing is that such a resolution was passed during the pendency of these petitions,”

the bench observed.

The high court also said the colour-coded map of the Navy will prevail over the Vasco ODP and

MPDA cannot ignore it by passing a resolution.

“This is a matter of aviation safety and due deference is necessary to be shown to not only the

2015 rules, but also the CCZM prepared,” the high court said.

Godinho had told TOI that the Navy was using the security of aircraft as an excuse to restrict

construction activity in the vicinity of the airport. “Just because some homes are in the landing

Newspaper/Online ET Realty (online)

Date February 24, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/cant-construct-buildings-

around-airport-violating-navy-rules-bombay-hc/74276220

zone, you cannot destroy the buildings,” he had said.

The state government has also rejected the Navy rules and chief minister Pramod Sawant has

written to the defence ministry asking for the norms to be relaxed for Goa.

“The MPDA will have no authority to pass the aforesaid resolution, as the passing of the

resolution virtually amounts to the MPDA acting in defiance with the ministry of civil aviation

(height restrictions for safeguarding of aircraft operations) rules, 2015, or the colour coded zoning

map (CCZM) prepared thereunder,” the high court said.

The high court passed the order on a public interest litigation filed by Alexander Michael and

others against MPDA and the state government for allowing several high-rise buildings to come

up in the close vicinity of Goa’s lone airport.

MPDA, through its counsel, A D Bhobe said the planning body would abide by the Navy rules

and not grant development permissions on the basis of the ODP.

________________________________________________________________________________________________

Pune development body moots Rs 20,000 water cess for each new

flat

While the proposal was earlier cleared for Wagholi in 2018, there is a plan for implementing

the same across the 7,000sqkm area in PMRDA.

The Pune Metropolitan Region Development Authority (PMRDA) has placed a proposal before

the state irrigation department for charging a one-time water cess of Rs 20,000 from each

upcoming flat in the region to build a fund for setting up a water infrastructure system.

While the proposal was earlier cleared for Wagholi in 2018, there is a plan for implementing the

same across the 7,000sqkm area in PMRDA.

According to the proposal, the water would be made available from 15 dams of the Maharashtra

Krishna Valley Development Corporation. The cost of drawing water from the dams through

pipes or canals would be huge and the water cess needs to be collected for this, officials said.

However, the same needs to be approved. Already, the PMRDA has placed a demand before the

irrigation department for 4TMC water allocation in the area in the next ten years.

The area, which covers 816 villages comprising Maval, Mulshi, Haveli, parts of Bhor, Daund,

Shirur, Khed, Purandar and Velhe talukas, has requirement for 12-15 TMC water in the next 30

years.

At present, people in the area rely on groundwater. The estimated current population of nearly

29lakh in the PMRDA limits is also likely to double in the next two decades, which would also

push up the demand for water, officials said. A developer said that if the cess has to be paid

upfront, then the water should be available when the project is completed as the amount would,

in effect, be collected from citizens at the time of booking.

“However, if the housing project is a long-drawn one, then the amount should be collected in

phases,’’ said a developer who plans to come up with a project in the area.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-development-body-moots-rs-20000-water-cess-for-each-new-flat/74254194

Index II extract of old buildings to go online in Pune

It is the official document of transaction recorded in the records of registering authority,

confirming the completion of the transaction.

Citizens planning to invest in Pune-based properties registered between 1990 and 2002 will soon

be able to search for their detailed ‘Index II extract’ online as the registration department has

decided to upload this data on its website by July this year.

The Index II extract is a document that a person gets after registering the document of immovable

property. It is the official document of transaction recorded in the records of registering authority,

confirming the completion of the transaction.

For the Pune properties registered from 2002 onwards, this data is already available on the IGR

website. “In Mumbai, the data of the old properties is available as a part of e-search facility. The

same will be replicated in Pune before covering the entire state,” IGR Omprakash

Deshmukh said.

Registration department officials said the data was earlier checked manually. With the hiring of

additional staffers as data entry operators, the work of uploading the detailed Index II extract

should be completed soon, they said.

Once the online facility for old properties is in place, citizens would no longer have to depend on

real estate agents to procure certified hard copies of property transactions. It would also help in

checking the possibility of cheating as the buyers would be able to check the transaction history

of a particular property before investing in it.

The feature would be made available under the eSearch facility on the official website

(igrmaharashtra.gov.in) of the inspector general of registration (IGR).

“If a person is interested in purchasing a property anywhere in Pune, s/he just need to know its

city survey number (or the Milkat number or the plot number) and the concerned revenue village.

Entering these details on the IGR website will throw up the property’s transaction history,”

another official of the registration department said.

Citizens feel that the move would help buyers wishing to invest in old properties. “I recently sold

my flat, which was registered in 2000. I had to employ a lawyer for getting the e-search of the

property done. Once the search facility for old properties is available, the entire process would

become easier,’’ a Kondhwa resident said.

A lawyer, who helps citizens register their properties, said for these old properties, one had to sit

with the sub-registrar’s office for hours to check for the data manually. “It is good that they are

uploading the data online. This will help citizens,’’ he added.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/index-ii-extract-of-old-buildings-to-go-online-in-pune/74253729

Rajasthan proposes 1% hike in stamp duty on property

registration

Currently, the state government levies 5% stamp duty from men and 4% from women on

property including 1% registration fee. Increase in 1% on the registry would burn a hole

in the pocket of buyers.

Buying houses will be dearer as the state government has proposed to increase stamp duty on

registration of property by 1%. Though the state government decided to slash the district-level

committee (DLC) rates by 10%, realtors believe this would not provide a big relief as these rates

were increased by 20 to 25 % six months ago.

Currently, the state government levies 5% stamp duty from men and 4% from women on property

including 1% registration fee. Increase in 1% on the registry would burn a hole in the pocket of

buyers.

A developer explained that if a man plans to purchase a Rs 1-crore property, he has to pay Rs 6

lakh and Rs 60,000 surcharge (1% of the total registration charge). Even if the DLC is decreased

by 10%, a man will end up paying more. “Now buyers have to pay total 7% on the value of 90

lakh, which is Rs 6.30 lakh. On this amount, 1% surcharged will be imposed. The consumer will

be end up paying 33,000 extra,” explained a developer.

Developers alleged that at a time when the real estate market was facing a slowdown in the state,

successive governments increased the rates from 15% to 30% since 2014. “Imposing 1%

additional stamp duty will discourage buyers. The government has actually not done much for

the realty,” said Ankur Tiwari, a developer.

Gehlot announced that stamp duty on land patta issued by state government and local bodies will

be calculated on the amount taken for patta instead of district lease committee (DLC) rates or

market price.

“The move will encourage plot owners who are escaping from taking lease deeds. Also it is

expected to provide many small plot owners who will be exempted from paying stamp duty as

per hefty DLC rates,” said Manoj Agarwal, a plot owner.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/rajasthan-proposes-1-hike-in-stamp-duty-on-property-registration/74253963

Ten years on, property owners still wait for TDR certificates

Owners gave up their land in 2008, got nothing in return. But TDR has not really become

popular among property owners in the city.

To accommodate the needs of growing cities and creating new and wider roads and transport

solutions, the Bruhat Bengaluru Mahanagara Palike started something called Transfer of

Development Rights (TDR) in 2005.

With this, when private properties and lands came in the way of road widening, the Palike would

issue TDR to property owners only (and not tenants) making available certain amount of

additional built up area in lieu of the area relinquished or surrendered by the owner of the land.

The owner could use extra built up area either for his own use or transfer it to another in need of

the extra built up area for an agreed sum of money. The TDR issued on a Development Rights

Certificate is very much in demand by builders because it can give them the right to build extra

floors on the land.

But TDR has not really become popular among property owners in the city.

According to reliable sources, there are around 2,000 TDR-related applications pending with the

civic body. Hapless property owners who have handed over their properties to the BBMP in good

faith are being made to wait for the last 10 years.

Chairman, Karnataka State Board of AUQAF, Dr Mohammed Yousuff, who handed over his

property to the BBMP in 2008 to facilitate the widening of Nagawara Main Road, has still been

waiting. Though Dr Yousuff was lucky enough to get a Development Rights Certificate (DRC)

from the BBMP on August 11, 2010, he was not able to revalidate it till date. “I handed over

515.79 sq metres of land for widening the road. The then BBMP Commissioner had issued the

DRC in 2010. The authorities had to re-validate the DRC in 2015 since I did not utilize it. They

delayed accepting my application till 2017 on one pretext or the other. After accepting it, they

have not done anything except sending the file from one BBMP office to the other,’’ said Dr

Mohammed Yousuff.

I visited the BBMP office several times to get the DRC but in vain. The BBMP authorities

have not bothered to redress my grievances. I am tired of visiting the BBMP office–

Ramaiah, who lost 171 sq metres of his land for road widening

Like Yousuff, other property owners like Ramaiah, Subramani and Murugesh, say they have been

made to run from pillar to post over TDR and DRC.

BBMP under pressure

It has to acquire properties for various development projects, including widening of roads, in the

city. With no surplus funds, the BBMP wants to issue TDR certificates to the property owners

against the land or property acquired for the development projects.

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/ten-years-on-property-owners-still-wait-for-tdr-certificates/74254126

The civic body is also not able to take up infrastructure projects because many property owners

are unwilling to accept the TDR certificates.

The other reason for the failure of the TDR scheme is the civic body’s negligence in fixing TDR-

related issues on a priority basis. Yousuff says that though a part of the land has been acquired

by the BBMP in 2010, he has still been paying property taxes for the entire land.

After acquiring a part of the land, the BBMP has not yet issued a khata certificate detailing the

dimensions of the land which is now owned by Yousuff. His current status is this: a portion of

his land has been relinquished to the BBMP for road widening. The road has come up. But

Yousuff’s DRC has not been revalidated till now, though it was issued in 2010.

According Sandesh Gowda, a public relations officer of a well-known land developing company,

the BDA has to prepare the master plan and the local authorities have to inspect the road meant

for widening. Based on the master plan, the BBMP Commissioner should issue a circular for land

acquisition.

The survey department has to identify the land to be acquired for the road widening. The BBMP

has to take the land into its possession and the landowner has to make a relinquishment deed to

the BBMP. Based on the relinquishment deed, the BBMP has to issue TDR certificate to the land

owners.

Now, the BDA is authorized to issue the TDR certificate. All the files pending with the BBMP

have to be sent to the BDA.

“Due to the lack of coordination between the BBMP and the BDA, a number of files are pending,”

Sandesh Gowda said.

As for Ramaiah, Subramani and Murugesh, they say they have relinquished their land to the

BBMP and are still waiting the TDR for 10 years now. They’ve lost their land and the revenue

that could have come from it.

“I visited the BBMP office several times to get the DRC but in vain. The BBMP authorities have

not bothered to redress my grievances. I am tired of visiting the BBMP office,’’ said Ramaiah

who lost 171 sq metres of his land for widening the road.

When contacted, BBMP Assistant Commissioner for Land Acquisition and TDR Harish Naik

said that he would look into the matter. “I am in-charge of this department since three months. I

will direct my subordinates to coordinate with other departments to fix these problems as early

as possible,’’ said Harish Naik.

Meanwhile, BBMP Commissioner B H Anil Kumar has also assured that he will look into the

matter.

“I will direct the BBMP authorities concerned to take measures for issuing the DRCs to those

who handed over the land for the infrastructure projects in the city. The BDA has to re-validate

the DRCs. I will look into the matter,’’ the BBMP Commissioner said.

________________________________________________________________________________________________

Nashik civic body collects Rs 23 crore under amnesty scheme

As per the scheme, the defaulters who pay their dues in one time were to be given a waiver

in penalty, warrant and notice fees.

Nashik Municipal Corporation (NMC) has collected Rs 23 crore from property tax defaulters

through amnesty scheme that was implemented between December 15 and Feb 10.

As per the scheme, the defaulters who pay their dues in one time were to be given a waiver in

penalty, warrant and notice fees.

NMC waived penalty amounting to Rs 5.87 crore to defaulters for paying their dues.

“We had planned collecting Rs 50 crore revenue through amnesty scheme, but we could collect

only Rs 23 revenue from tax defaulters under the scheme. We waived tax penalty to the defaulters

who paid all their tax dues,” said NMC officials.

This was for the second time the amnesty scheme had been introduced between December

February months.

In September last year, NMC had introduced amnesty scheme for tax defaulters. Penalty on

property tax dues of defaulters, who cleared their tax dues, were waived under the scheme. NMC

had collected property tax dues amounting to Rs 30 crore through amnesty scheme in just one

month.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-civic-body-collects-rs-23-crore-under-amnesty-scheme/74254100

About 16 self-proposed town planning schemes under scrutiny of

PMRDA

The Pune Metropolitan Region Development Authority (PMRDA) officials would review

the proposals before giving approval to them. Each scheme would come up on at least 100

acres of land.

As many as 16 self-proposed town planning schemes are under the scrutiny of the Pune

Metropolitan Region Development Authority.

The Pune Metropolitan Region Development Authority (PMRDA) officials would review the

proposals before giving approval to them. Each scheme would come up on at least 100 acres of

land.

A source in the PMRDA said residents from Wagholi, Chakan, Pirangut and Hinjewadi had

come forward with a land pool of more than 100 acres each for having a planned town planning

scheme on the lines of the Mann-Mhalunge town planning scheme.

The PMRDA officials claimed that they had received a good response from the citizens on self-

proposed town planning schemes. After scrutinising the proposals, the authorities would publish

the notification, work on the layout and take administrative permissions.

The basic concept of the town planning scheme is pooling together all the land under different

ownerships and redistributing them in a properly reconstituted form after deducting the land

required for open spaces, social infrastructure, services, housing for people from the economically

weaker sections and road network. Under the self-proposed town planning scheme, the land

owners part with 20% of their land as against 50%, which is the condition of the PMRDA

proposed town planning schemes.

Under the self-proposed town planning schemes, the PMRDA is expected to carry out some of

the basic infrastructure work. The landowners, along with the developers, would have to plan the

area.

“The PMRDA would help facilitate the schemes. But mainly the landowners, along with the

developer, would have to submit their detailed plan. The approach road and surroundings would

be managed by the authority. The other facilities would be the responsibility of the developer,”

said a PMRDA official.

The PMRDA has six proposed town planning schemes. They will soon be rolled out.

The method followed in the town planning schemes is extensively used in Gujarat and

Maharashtra to achieve the objectives of the Development Plan. Town planning schemes are

prepared with micro-level planning for smaller areas of about 100 hectares.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/about-16-self-proposed-

town-planning-schemes-under-scrutiny-of-

pmrda/74254113?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-24

Dehradun civic body extends 20% rebate on property tax payment

till Feb 25

The residents of the 32 new wards can now avail a 20% rebate on the payment of

commercial tax till February 25. These residents have been exempted from paying

residential tax until 2028.

Dehradun Municipal Corporation (DMC) has postponed the last date for residents of the old

wards to avail a rebate of 20% on property tax (both commercial and residential) payment. Now,

the last date to avail this rebate is February 25.

Also, the residents of the 32 new wards can now avail a 20% rebate on the payment of commercial

tax till February 25. These residents have been exempted from paying residential tax until 2028.

The move comes after the civic body received several requests in this regard. At first, January 15

was decided as the last date to avail rebate on property tax payments. However, the last date to

avail rebate has been extended several times so far.

Notably, the DMC has set a target of Rs 50 crore for its property tax collection for the current

financial year and its officials are confident that they will achieve it.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 22, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/dehradun-civic-body-

extends-20-rebate-on-property-tax-payment-till-feb-25/74253987

Chandigarh estate office to survey buildings for code violations

The municipal corporation had recently taken up the issue of encroachments with the UT

administration and the estate office.

The Chandigarh administration has directed the UT estate office to carry out a fresh survey of

building violations in the city, including commercial areas. The municipal corporation had

recently taken up the issue of encroachments with the UT administration and the estate office.

The MC had raised the issue of encroachment on water and sewerage lines by residents, besides

violations in market areas.

A UT estate official said they would soon form teams to carry out inspections in sectors, colonies,

villages and markets of Chandigarh to check encroachments on government land. The report will

be submitted to senior officials and accordingly action would be initiated against the violators, he

added.

The MC had raised the issue that in many sectors, especially in southern part of the city and EWS

colonies, residents at the ground floor have extended their backyard and covered government

land. While doing so, they have also constructed rooms.

As a result, water and sewer lines have come under these rooms and in case of any fault in these

supply lines, the MC staff finds it difficult to repair. These residential properties come under the

UT estate office and the encroachment is to be dealt by the said department.

Besides, the MC had also raised issues of violations by shopkeepers in the markets of sectors 22,

Newspaper/Online ET Realty(online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-estate-office-

to-survey-buildings-for-code-violations/74264166

19 and 15 with the estate office. Traders in these markets have not only rented out the shops, but

sidewalls as well. The shopkeepers have rented out sidewalls for Rs 10,000 to Rs 15,000,

depending on the location.

According to information, the rent of sidewalls in Shastri Market in Sector 22 and Sadar Bazaar

in Sector 19 is higher as compare to Sector 15 market. The shopkeepers have put up rods on the

walls to display goods.

The MC recently carried out an anti-encroachment drive and also issued challans to the

shopkeepers, who had put up items on the sidewalls.

For a permanent solution to the issue of encroachments, the MC had sought cancellation of

allotment of such shopkeepers.

_____________________________________________________________________________

Only 1.2% illegal colonies regularised in Punjab

After announcement of the scheme in October 2018, a total of 1,461 applications for

regularisation of colonies were moved, according to data tabled in the budget session.

More than a year after launch of the ambitious scheme to regularise illegal colonies and plots -

the fourth such amnesty scheme in last seven years - the Punjab government has granted no

objection certificates (NOC) to just 53 colonies, constituting only 1.2 % of total number of

unauthorised colonies in the state.

There are about 4,395 illegal colonies outside municipal corporations limits in the state. The low

number points to the failure of government to regulate the development of colonies, plots and

buildings in these colonies, that too, despite repeated enactments of such polices and repeated

extensions for applying under these.

After announcement of the scheme in October 2018, a total of 1,461 applications for

regularisation of colonies were moved, according to data tabled in the budget session.

Separate applications, high fee behind poor response, say experts

Newspaper/Online ET Realty(online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/only-1-2-illegal-colonies-

regularised-in-

punjab/74254070?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-24

Of these applications, 482 were received in Ludhiana and NOC was granted in 11cases. In

Jalandhar, 5 of the 116 applications were cleared while in Patiala, home district of Punjab chief

minister Captain Amarinder Singh, 104 applications were received, but no NOC was granted.

Interestingly, the number of applications received from individual plot holders is significantly

higher and so is the number of NOCs issued by the government. Of the total 53,275 applications

sent by individual plot holders, 18,323 were regularized. The authorities received highest number

of applications from Ludhiana (23,395) and Patiala (9,702).

Trade experts said the government allowing colonies and plot owners to move applications

separately and extending the scheme many times was a big factor behind the poor response. Apart

from this, the high fee charged for regularisation and strict norms were other reasons given by

colonisers for not applying. Despite repeated attempts, housing and urban development

minister Sukhbinder Singh Sarkaria was not available for comments.

Unhappy with the high rate of pendency, Congress MLA Avtar Singh Junior urged the

government to process the pending applications in a time-bound manner. “The pending

applications are causing great inconvenience to those who have applied for regularisation,” said

Avtar Singh, requesting the government to reduce the rate fixed for regularisation so that more

colonies and individual plot holders can avail the benefit of the scheme. “It will also help the

government to generate more revenue,” he added.

________________________________________________________________________________________________

Nashik civic body to hold open auction for leasing its properties

Nashik Municipal Corporation (NMC) recently conducted an audit of its properties and

found glaring loopholes in the lease agreement of 900 properties given to private parties and

social outfits.

The civic administration has decided to hold open auction for leasing its properties. It has also

decided to lease properties at 8% of the ready reckconer (RR) rates as against the previous rate of

2.5%.

Nashik Municipal Corporation (NMC) recently conducted an audit of its properties and found

glaring loopholes in the lease agreement of 900 properties given to private parties and social

outfits. In many cases, properties were leased out to parties without any formal agreement while

a few others were paying a very low rent. In some cases, the parties concered continued using the

properties even after the expiry of the lease period.

Hence, the civic body has decided to put into effect two new policies to ensure lease agreements

are given to credible parties in a transparent manner and elected representatives do not have much

say on the issue.

Officials from the civic administration said, “The urban development department of the state

government has sent a letter directing us to implement a new policy in leasing our properties. As

per the new policy, the properties should be leased in an open auction and at 8% of the ready

reckoner rates prevailing in the area where the plots are located. The properties of the civic body

will now be leased as per the new policy of the state”

“We will soon inform the corporators about the new policy in the general body meeting,” said the

officials.

NMC has over 2,800 properties—1,900 of which have been leased out for commercial purposes.

The remaining 900 properties have been leased to different social outfits for setting up study halls,

community halls, library, laughter clubs, gymnasiums and a host of other facilities.

A few months back, city-based educationist Ratan Luth had filed a public interest litigation (PIL)

in the Bombay high court (HC) over the misuse of civic properties.

During a hearing last year, the HC had directed NMC to submit a report on the status of properties

that were given to social institutes and NGOs at nominal rates on May 3. The civic body failed to

submit the report.

The court then pulled up the municipal corporation for not maintaining a record of its properties.

It also directed municipal commissioner Radhakrishna Game to remain present during the next

hearing.

Newspaper/Online ET Realty(online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-civic-body-to-hold-

open-auction-for-leasing-its-

properties/74254015?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-

24

On being taken to task by the HC, NMC started taking action against the properties being misused

and sealed 382 of the 945 properties it owns across six divisions.

Thereafter, the HC directed NMC to give a detailed history of each property. The civic body has

conducted an audit of all its properties and will present the report before the court in the next

hearing.

________________________________________________________________________________________________

Ghaziabad stamps department to recover duty on extra FAR

Citing a government order, the department has sought from GDA details of all such

developers who bought extra FAR in the past five years, officials said.

Keen to shore up revenues, the district stamps and registration department plans to recover from

developers stamp duty pending on additional floor area ratio (FAR) purchased from

the Ghaziabad Development Authority (GDA).

Citing a government order, the department has sought from GDA details of all such developers

who bought extra FAR in the past five years, officials said.

The state government, for the current fiscal, has set a target of Rs 16.74 crore as stamp duty, and

the Ghaziabad stamps and registration department has so far met 85% of the target. If stamp duty

on additional FAR is recovered from developers, officials believe it would help the department

meet its annual revenue target.

AIG (stamps) KK Mishra told TOI that there’s a provision to pay stamp duty on additional FAR

as per a 2015 government order (GO). “But the GO was never implemented as a group of 28

builders had in 2016 moved the Allahabad HC against it and secured a stay,” he said.

“However, we have now received fresh orders from the government for implementing the GO

and so we have sought details from GDA of developers who availed purchasable FAR so that we

could issue notices to them for recovery of pending stamp duty,” added Mishra.

The department, in the meantime, has referred the matter to the standing council over the status

of the case that was filed by a consortium of builders.

The GDA normally allows 2.5 FAR, but a developer can seek up to 3.75 FAR from the

development authority at an additional cost. which is 60% of the land cost in case of commercial

property and 40% in case of group housing societies.

GDA’s chief architect and town planner Asheesh Shivpuri said they would definitely share details

of the developers who purchased additional FAR since 2015.

But developers have slammed the latest move of the stamps and registry department. “In 2016,

the HC had stayed the matter only after it saw merit in our case. Though the court has still not

passed a final judgment in the case, we will oppose the move,” said Gaurav Gupta, president of

CREDAI’s Ghaziabad chapter.

________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date February 23, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad-stamps-

department-to-recover-duty-on-extra-

far/74264140?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-24