March 17, 2021 - CREDAI
Transcript of March 17, 2021 - CREDAI
CREDAI Bengal Daily News Update | 17.03.21
Affordable housing homebuyers not aware of the benefits, says new
survey
The awareness survey, which included over 1,000 affordable housing loan customers, found
that there is a lot of confusion about whether woman’s ownership is mandatory to avail
PMAY benefits, only 48% of the respondents knew that it’s a must for EWS and LIG home
buyers.
Even as affordable housing got a big boost in the Budget 2021 with tax benefits extended until
FY22, nearly half of existing homebuyers in this category are unaware of the Pradhan Mantri
Awas Yojana (PMAY) scheme, according to a survey by BASIC Home Loan, a fintech startup
for automated home loans for middle and low-income households in India.
The awareness survey, which included over 1,000 affordable housing loan customers, found that
there is a lot of confusion about whether woman’s ownership is mandatory to avail PMAY
benefits, only 48% of the respondents knew that it’s a must for EWS and LIG home buyers.
“We thought that there would be low awareness, however, the findings were quite a surprise, in
terms of the percentage of people found completely wanting. The onus lies on lenders, as well
government, to acquaint the masses with the many benefits it provides,” said Atul Monga, CEO
of BASIC Home Loan.
Monga said that the eligible candidates for PMAY should automatically get the benefits, instead
of filling another application with the lender.
According to the survey, only 17% of respondents were found to be aware of Rs 2.67 lakh being
the maximum subsidy amount available under PMAY.
Almost half the respondents think that the maximum loan tenure for PMAY subsidy is 30 years,
which is not the case. While under 37% responded correctly that the maximum loan tenure for
PMAY subsidy is 20 years.
“Government of India has already taken many steps in the right direction, but there are areas of
improvement to transform the sector canvas to a vibrant and delivery-oriented landscape. As part
of the current awareness schemes, Angikaar Campaign was launched to mobilize PMAY (U)
beneficiaries for social behavior change management,” said Ravinder Reddy, partner, public
sector, Grant Thornton Bharat LLP.
Newspaper / Online The Economic Times (Online)
Date March 16, 2021
Link https://economictimes.indiatimes.com/industry/services/property-/-cstruction/affordable-housing-homebuyers-not-aware-of-the-benefits-says-new-survey/articleshow/81531046.cms
Under the Pradhan Mantri Awas Yojana (PMAY), 10 million houses have been sanctioned and
Government of India has committed an amount of more than 24 billion USD for the successful
implementation of this scheme.
“To increase awareness, proper capacity building needs to be carried out not only for
customers/beneficiaries but also for implementing agencies, developers, and contractors. A
portion of project funds should be mandated to establish a help desk to improve financial literacy
of the people and to create awareness about various housing schemes and financing availability
from formal finance sector,” said Ravinder Reddy.
Homebuyers were also asked about the maximum value of a house under the affordable housing
segment in metro and maximum carpet area under PMAY. ____________________________________________________________________________________________
NAREDCO Uttar Pradesh directs their members to submit registry
plan to authority
The association of developers said that the UP government has accepted the proposal to
allow registry of flats on deposit of land dues liability per flat, worked out by the authority
applying simple interest at SBI-MCLR as per Supreme Court Order.
The National Real Estate Development Council (NAREDCO) has urged the developers to start
the registry of flats as the local authority in Noida and Greater Noida has started a drive for the
same.
The association of developers said that the UP government has accepted the proposal to allow
registry of flats on deposit of land dues liability per flat, worked out by the authority applying
simple interest at SBI-MCLR as per Supreme Court Order.
“Supertech Group has also submitted their request letter giving calculations of liability based on
the Supreme Court Order and on knowing further modalities from the authority, action for registry
shall start. We hope that government will accept our proposal so that we can obtain registry
permission by paying dues on per flat basis. It will help government to collect revenue as well as
individual customers to get their registry done,” said R K Arora, Chairman, Supertech Group and
President NAREDCO-UP.
Registry for 50,000 units are pending currently in Noida.
NAREDCO-UP has sent directions to all NAREDCO members including Panchsheel, Ajnara,
Antriksh and Migsun Group.
The Chief Secretary, UP in a meeting with the developers and the CEOs of Noida, Greater Noida
and Yamuna Expressway Authorities had discussed the buyers’ complaints in this regard and as
a solution, the above proposal was accepted in principle.
Noida authority has threatened to take action against real estate developers who have offered
possession to homebuyers without doing the registry.
The authority conducted inspection of 18 housing societies and found people living there for 4-5
years without registry causing revenue loss to the state government.
Now the authority has started special camp in housing societies for the registry of flats.
Newspaper / Online The Economic Times (Online)
Date March 16, 2021
Link https://economictimes.indiatimes.com/industry/services/property-/-cstruction/naredco-uttar-pradesh-directs-their-members-to-submit-registry-plan-to-authority/articleshow/81531259.cms
The authority has also said that instead of paying dues in one go, the builder can pay the dues
during the registry of flats. Noida authority has given three months time to complete the registry. ____________________________________________________________________________________________
Maharashtra: Mediation helps settle over 75% builder-buyer
disputes in last three years
Since 2018, over 75% of the disputes between builders and flat buyers in the state that went
in for mediation were resolved successfully, thereby avoiding time-consuming litigation
before Rera courts.
Since 2018, over 75% of the disputes between builders and flat buyers in the state that went in
for mediation were resolved successfully, thereby avoiding time-consuming litigation
before Rera courts.
Three years ago, Maharashtra became the first state to set up a conciliation committee under the
Real Estate (Regulation and Development) Act (Rera) to settle disputes amicably.
According to data collated by Mumbai-based consumer group Mumbai Grahak Panchayat
(MGP), the success rate was 71% in Mumbai region and as high as 85% in Pune.
Currently, there are 26 conciliation benches under Rera that help stop quarrels from going to Rera
courts. It is entirely voluntary, and the conciliation can only be initiated when the complainant
and builder both willingly agree to it. These conciliation benches started functioning on March
10, 2018, and on its third anniversary on Wednesday, activists said this alternate dispute redressal
has done a splendid job.
“On the very first day in the first sitting, Mumbai conciliation benches settled six out of 16
disputes referred to them and Pune benches settled two out of six disputes,’’ said Shirish
Deshpande, chairman of MGP.
“Although the pandemic prevented physical hearings by conciliation benches, they swiftly moved
over to online conciliation to give relief to aggrieved home buyers,’’ said Ajoy Mehta, chairman
of MahaRera.
Each bench comprises one conciliator from the MGP and one conciliator from builders’
associations such as Naredco, Credai-MCHI.
MGP conciliator Archana Sabnis recounts a case of a complainant residing in the UK who booked
a flat by making payment of Rs 4.5 crore.
“The promoter had promised to give possession by December 2017. The consumer wanted to
visit the site to see the progress of the project, which was refused by the developer. The consumer
came to know that the construction of his tower had not even started. Ultimately, he asked for the
Newspaper / Online ET Realty (Online)
Date March 17, 2021
Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-mediation-helps-settle-over-75-builder-buyer-disputes-in-last-three-years/81543174
refund, which was flatly denied by the builder,’’ she said.
The consumer filed a case before the Rera. Sensing a chance to resolve the dispute, the case was
referred for conciliation.
“We had a virtual conciliation, during which the consumer requested for a refund. He informed
us that he was diagnosed with a grave health condition, with a low survival rate, hence, it would
have been difficult for him to make any further payments towards the flat. He wanted a refund
which he could utilise towards his medical expenses. The promoter flatly refused to give any
refund. On the contrary, he demanded some amount from the consumer towards damages,’’ said
Sabnis.
“Considering the body language and attitude of both the parties, it was a real challenge for us to
solve the case amicably. We were stunned with the attitude of the developer. It was a tricky and
challenging situation because both the parties were facing genuine financial problems. However,
considering the medical condition of the consumer, we both personally requested the developer
to consider the case on humanitarian ground. Ultimately, we could bring them to a settlement,’’
she added.
The developer finally offered three smaller flats instead of the bigger one that the consumer had
booked to cover the payment already advanced to him. The offer was willingly accepted by the
consumer.
________________________________________________________________
Odisha government asks Bhubaneswar civic body to stop collecting
holding tax
With the government’s decision, the Bhubaneswar Municipal Corporation (BMC) is now
restrained to go ahead with collection of holding tax dues from repeat defaulters and first
time defaulters as well.
Coming under ire of smart city residents, the state government on Monday decided to pause
collection of revised rate of holding tax, till the Orissa High Court comes up with its final
judgment on the matter.
With the government’s decision, the Bhubaneswar Municipal Corporation (BMC) is now
restrained to go ahead with collection of holding tax dues from repeat defaulters and first time
defaulters as well.
Housing and urban development minister (H&UD) Pratap Jena announced that the holding tax
collection on the basis of revised rate will be put on hold till the HC judgment. “There was a
petition in the HC opposing the move of the BMC to collect holding tax on the basis on new rates.
The court had given interim order to collect tax on the basis of revised rate, but in that case only
50 per cent of total dues can be collected by the civic body. In view of people’s demand, now the
new rate is put on hold,” Jena told the media.
The holding tax had gone up manifold, by 50 to 500 per cent due to its calculation on the basis of
a revised benchmark valuation of land in the state capital. Holding tax, a major revenue
component of the civic body is calculated on the basis of land value and the building cost. The
BMC said holding tax amount is 17.5 per cent of the land value and building cost taken together
(in case of residential complex).
The BMC calculates 0.5 per cent of land value of a particular area (which varies from locality to
locality) and adds up with the building cost, which is calculated on the basis of Rs 1.35 paise per
sq ft of built up area. “Since the land valuation has increased manifold at different locations of
the city, the final calculation of tax amount automatically goes up. The BMC’s mandate is to
assess (evaluate) the tax on the basis of new benchmark value of land. It has kept the percentage
of holding tax intact,” explained a BMC officer.
The revised holding tax rate came into force from April, 2019. Many residents and owners of
commercial complexes have paid the revised rate in 2019-20 financial year. Because of slow pace
of collection, the BMC had fetched Rs 42 crore in 2019-20 financial year against a target of Rs
60 crore. “This year due to pandemic and people’s reluctance to pay the tax, we have so far been
Newspaper / Online ET Realty (Online)
Date March 16, 2021
Link https://realty.economictimes.indiatimes.com/news/regulatory/odisha-government-asks-bhubaneswar-civic-body-to-stop-collecting-holding-tax/81524371
able to fetch Rs 32 crore,” the officer added.
BMC officials said those, who have paid tax this year according to the new rates, their dues next
year will be adjusted.
The high holding tax rates has culminated in a political slugfest with opposition BJP and Congress
staging protests. On Friday, both the parties had gheraoed the BMC office. On Monday, the
Congress workers were seen laying siege to the BMC office again.
________________________________________________________________
Housing societies in Hyderabad and Secunderabad take up water
meter installation
RWAs are buying water meters from agencies empanelled by the Hyderabad Metropolitan
Water Supply and Sewerage Board (HMWS&SB) for both domestic and non-domestic
consumers.
While SCB is yet to start study on water meters to implement the 20KL free water
scheme, residential welfare associations (RWAs) in twin cities of Hyderabad
and Secunderabad and in the periphery of GHMC are busy in fixing water meters to avail the
scheme.
With only two weeks left till the deadline to fix the automated water meters (March 31), RWAs
are buying water meters from agencies empanelled by the Hyderabad Metropolitan Water Supply
and Sewerage Board (HMWS&SB) for both domestic and non-domestic consumers.
Meanwhile, few RWAs have also approached the water board to clarify problems regarding the
linking of Aadhaar with the consumer account number (CANs). Property owners with two water
connections against their name are facing issues at the time of Aadhaar linkage.
Of nearly 4,300 RWAs, nearly 3,000 RWAs have followed HMWS&SB’s guidelines in fixing
the water meters for the free water scheme. Tnn
________________________________________________________________
Newspaper / Online ET Realty (Online)
Date March 16, 2021
Link https://realty.economictimes.indiatimes.com/news/residential/housing-societies-in-hyderabad-and-secunderabad-take-up-water-meter-installation/81529308
Two agencies bid for Nashik's construction & demolition waste
management project
Earlier, the civic body had floated tenders on four occasions, but it did not receive any
response. But now two private agencies have filed their bids to operate the C&D waste
management project in the city.
After almost two years, the Nashik Municipal Corporation (NMC) has received good response
for its bid to appoint a private agency to collect, transport and recycle construction & demolition
(C&D) waste.
Earlier, the civic body had floated tenders on four occasions, but it did not receive any response.
But now two private agencies have filed their bids to operate the C&D waste management project
in the city.
“Disposing debris from demolition and construction sites is a major issue in the city. It also causes
air pollution. The Centre has also provided Rs 20.5 crore to take various measures for improving
the city’s air quality. We have prepared a blueprint to reduce air pollution, which also includes
the C&D waste project,” S Vanjari, NMC executive engineer (environment), said.
“We had recently floated a tender in this connection and for the first time have received a response
to the bid,” he added.
The civic body will provide land to the contractor where construction and demolition waste would
be recycled. The construction waste, which is not usable or can’t be recycled, will be sent to the
dumping ground as identified by the municipal corporation.The list of dumping grounds in all six
divisions — Nashik East, Nashik West, Nashik Road, Satpur, Cidco and Panchavati — will be
given the contractor for carrying out the work.
________________________________________________________________
Newspaper / Online ET Realty (Online)
Date March 16, 2021
Link https://realty.economictimes.indiatimes.com/news/industry/two-agencies-bid-for-nashiks-construction-demolition-waste-management-project/81524426
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