Comparative Analysis of Stock Brokers in CHANDIGARH Region - Manjit Gogoi
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25-Sept-2019
CREDAI Bengal Daily News Update | 25.09.19
Gujarat government hikes FSI to boost realty sector
Prominent among the measures were raising Floor Space Index (FSI) and special
approval for constructing "Iconic buildings" in four cities.
After central government's recent measure to bail out stalled housing
projects, Gujarat government on Monday unveiled slew of measures to boost the state's real
estate sector.
Prominent among the measures were raising Floor Space Index (FSI) and special approval for
constructing "Iconic buildings" in four cities.
"Today morning I signed the final Comprehensive General Development Control Regulation
(CGDCR) notification," Gujarat chief minister Vijay Rupani announced at CREDAI's Growth
Ambassadors Summit 2019, organised by Gujarat state chapter of the industry body the
Confederation of Real Estate Developers Association of India (CREDAI).
According to the provisions contained in the final CGDCR, prepared after incorporating
changes suggested by all the stake holders, developers will get an FSI of 3.6 on roads having
width of 36 metres to 44 metres. The permissible FSI for projects along roads with the width of
45 metres and more now stands at 4.
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/gujarat-government-hikes-fsi-to-boost-realty-sector/71268781
Common facilities such as clubhouse, gymnasium, play area, swimming pool, etc. will not be
considered as a part of the total FSI from now on. "There will not be any deduction from plots
measuring up to 2,500 sq mt in non-town planning areas," the chief minister added.
"We want iconic skyline buildings on the lines of Dubai and Hong Kong to come up in Gujarat.
We will give additional FSI for such projects. We will also give special approvals for such
iconic structures," he stressed.
While industry players welcomed the measures by stating that these will bring down the cost of
homes and offices in Gujarat. They, however, said that increase in FSI to 4 for projects on roads
with 45 metres or more width will not benefit R2 and R3 zones in Ahmedabad. These zones,
mainly falling on the other side of the SG Highway, the base FSI in these areas is 1.2 and 0.3,
respectively.
"The FSI of 4 will be given in areas where base FSI is 1.5. This means R2 and R3 zones will
not benefit from higher FSI of 4. Only R1 zone in the city has base FSI of 1.5," added a real
estate sector expert.
According to Amarjeet Singh, chairman, Gujarat Real Estate Regulatory Authority, over 6,000
real estate projects in Gujarat are registered with the state regulatory authority and the
investment in these projects is Rs 2 lakh crore.
Stating that Gujarat government is working to achieve prime minister Narendra Modi's dream
of 'Housing for All', deputy chief minister Nitin Patel said, "We are also working to simplify
laws and to further improve Gujarat's Ease of Doing Business ranking."
Gujarat's energy minister Saurabh Patel also said that the state government has set the target of
achieving renewable energy generation capacity of 30,000MW by 2022. A total 8 lakh
households will be covered under solar rooftop by 2022.
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Police cannot attach immovable properties during investigation of
criminal case: SC
A bench of Chief Justice Ranjan Gogoi and justices Deepak Gupta and Sanjiv Khanna
held that Section 102 of CrPC does not include the power of police to seize and attach
immovable properties.
The Supreme Court on Tuesday held that police cannot attach immovable properties during
investigation of a criminal case.
A bench of Chief Justice Ranjan Gogoi and justices Deepak Gupta and Sanjiv Khanna held that
Section 102 of CrPC does not include the power of police to seize and attach immovable
properties.
Justice Khanna, who read the judgment for the bench, said it is a concurring judgment but
Justice Gupta has given some additional reasons.
The top court interpreted Section 102 of the Criminal Procedure Code, which gives power to
police for seizure of any property during criminal investigation of any case.
The Bombay High Court, in its majority verdict, had held that police has no power to seize
property during the course of investigation.
The Maharashtra government had challenged the said verdict of the high court before the top
court.
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Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/police-cannot-attach-immovable-properties-during-investigation-of-criminal-case-sc/71276147
SBI approaches SEBI seeking an exception for MFs on DHFL
The nation’s top bank is apprehensive of a systemic risk if the ongoing efforts to finalise
the resolution plan for the indebted home financier fall flat, said two people with direct
knowledge of the matter.
State Bank of India has approached the Securities and Exchange Board of India, seeking a one-
time exception for mutual funds over a rule on segregation of assets so that they could be part of
a resolution plan being worked on for Dewan Housing Finance Corp.
The nation‟s top bank is apprehensive of a systemic risk if the ongoing efforts to finalise the
resolution plan for the indebted home financier fall flat, said two people with direct knowledge
of the matter.
Lenders to DHFL are meeting on Thursday as they seek to finalise an inter creditor agreement
(ICA). A joint lenders' meeting is also scheduled on Friday.
Participation of mutual funds, which hold bonds issued by the company, is key to any resolution
plan, as approval of at least 75% of lenders by value and 60% by number is compulsory to
executive any resolution plan under the ICA.
Most mutual funds could not sign the ICA as they were not compliant to Sebi-mandated side-
pocketing, or segregation of stressed assets from performing investments.
"SBI‟s boss (chairman Rajnish Kumar) has written to Sebi as the latest rules on side-pocketing
does not allow fund houses to sign the ICA," one of the people told ET.
DHFL, SBI and Sebi did not respond until press time Tuesday to ET's emails seeking comment.
SBI, according to the people, was apprehensive of the absence of a cohesive resolution plan that
would hurt the interests of investors and could have major systemic implications.
Through an August 29 circular, Sebi had allowed mutual funds to join any resolution process
for stressed companies and sign ICAs. But, the approval came with a condition: they must
segregate assets through side-pocketing, which should be done on the day of any credit event, or
downgrade of debt below investment grade.
The credit event at DHFL had occurred prior of Sebi‟s August circular. The only fund house
that side-pocketed the DHFL exposure before that is Tata Mutual Fund. The asset management
company has agreed to sign the ICA.
Newspaper/Online ET Realty (online)
Date September 25, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-approaches-sebi-seeking-an-exception-for-mfs-on-dhfl/71285885
"Since they (funds other than Tata MF) have not segregated the portfolio, they are unable to
participate in the ICA process," said a senior executive involved in the process.
SBI chairman Rajnish Kumar is said to have requested the market regulator to issue "suitable
directions" so that the resolution plan was collectively agreed on and implemented by a group
of lenders.
Banks have Rs 35,000 crore of exposure to the company through loans and also hold non-
convertible debentures issued by it. Bond holders, including mutual funds, insurance companies
and pension funds, have a Rs 45,000 crore exposure, which means the company owes creditors
about Rs 80,000 crore.
Catalyst, the custodian of bondholders in DHFL, had sent communications to about 87,000
debenture holders asking if they could join the ICA, and received responses from 24,400. Some
of those respondents have agreed to sign the ICA, while many others declined. Some did not
respond.
Redemption or roll-over of bonds is one of the proposals in the restructuring that will relax the
terms of repayments for DHFL. SBI sought some clarification also on this, citing various
regulatory provisions.
________________________________________________________________
Noida Authority to issue OCs and completion certificates online
The software can be accessed from the Noida Authority website as well as the Nivesh
Mitra website, a single window system for investors in Uttar Pradesh.
The Noida Authority is all set to make the process of issuing occupancy and completion
certificates online. The web page for applications and issuing the certificates for residential and
industrial areas will be inaugurated on Wednesday.
The software can be accessed from the Noida Authority website as well as the Nivesh Mitra
website, a single window system for investors in Uttar Pradesh.
“One of our primary goals is to make all processes online soon so that we can improve
efficiency and bring transparency,” said Ritu Maheshwari, CEO, Noida Authority.
Officials said that one can now apply for the certificates and pay the processing fee online.
Once the authority receives the request, a date and time for the survey visit would be conveyed
to the applicant. After a physical survey, a report will be prepared and uploaded, which can also
be viewed on the website
If there are any compounding charges applicable, that can also be paid online. Once all
processes are complete, a digitally signed certificate would be issued. “We are starting with
industrial and residential plots and we can also get a feedback,” said an official.
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Newspaper/Online ET Realty (online)
Date September 25, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/noida-authority-to-issue-ocs-and-completion-certificates-online/71286025
DHFL to discuss draft resolution plan with bankers
DHFL is the fourth-largest Indian housing finance company based on loans outstanding as
of March.
Financially-strapped Dewan Housing Finance Corporation (DHFL) will discuss its draft
resolution plan at a meeting of lenders on Wednesday.
"Further to the various disclosures made by the company in respect of its ongoing proposal on
debt restructuring and formulation of a resolution plan under the Reserve Bank of India's
Prudential Framework for Resolution of Stressed Assets dated June 7, the company would like
to inform you that it is been undertaking extensive discussions with its lenders," the company
said in a statement on Tuesday.
"Pursuant to these discussions, the company will be holding a meeting on September 25 with its
bank lenders to discuss the draft resolution plan. A further meeting will also be held on
September 27 by the company with all its institutional creditors in connection with the draft
resolution plan," it added.
DHFL is the fourth-largest Indian housing finance company based on loans outstanding as of
March. It has been facing a liquidity crisis since September 2018 but has paid over Rs 41,000
crore towards discharging its financial obligations.
The housing finance company has faced multiple rating downgrades in recent months. DHFL
says it has been working towards resolving its liquidity crisis in a comprehensive and timely
manner.
Last month, DHFL said it defaulted on its financial repayment obligations worth Rs 1,571 crore
with regard to the issuance of bonds and commercial papers. The company declared its March
quarter results after months of delay on July 13 and reported a loss of Rs 2,223 crore.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-to-discuss-draft-resolution-plan-with-bankers/71273755
Uttar Pradesh to give Rs 50 crore per year to seven civic bodies
under smart city scheme
The 10 others -- Lucknow, Varanasi, Kanpur, Allahabad, Agra, Aligarh, Jhansi, Bareilly,
Saharanpur and Moradabad -- have already been selected under the Smart City project.
The Uttar Pradesh government on Tuesday decided to provide Rs 50 crore to seven municipal
corporations for the next five years under the Smart City project.
"Municipal Corporations of Ayodhya, Mathura-Vrindavan, Meerut, Ghaziabad, Gorakhpur,
Firozbad and Shahjahanpur will be given Rs 50 crore per year for the next five years under the
Smart City mission," government spokesperson Shrikant Sharma told reporters.
He was briefing media about decisions taken at cabinet meeting chaired by Chief Minister Yogi
Adityanath.
There are 17 municipal corporations in the state. The 10 others -- Lucknow, Varanasi, Kanpur,
Allahabad, Agra, Aligarh, Jhansi, Bareilly, Saharanpur and Moradabad -- have already been
selected under the Smart City project.
The cabinet has also decided to form the post of the director general of school education for
ensuring financial discipline and coordination in the basic education department, the
spokesperson added.
_______________________________________________________________
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/uttar-pradesh-to-give-rs-50-crore-per-year-to-seven-civic-bodies-under-smart-city-scheme/71279527
Pune: Height restriction a major hurdle to SRA schemes in Parvati
area
According to experts, height restriction for constructions in these areas has been a major
hurdle to SRA schemes.
Changes in the development plan to push slum rehabilitation and a stricter implementation of
safety guidelines along BRTS lanes will be key to the transformation of the Parvati
constituency.
According to experts, height restriction for constructions in these areas has been a major hurdle
to SRA schemes. The current construction rules, many said, have not taken into account the
area‟s population.
For example, developers cannot take up projects higher than 21 metres. Rules dictate that only
five to six-storeyed buildings can be built in the Parvati area. But the real requirement is of
around 10 to 12 storeys so that a higher number of occupants can be accommodated by the
structures.
The ideal height of the flat systems then, experts said, should be at least 40 metres. But such
permissions have not been given as tall buildings could obstruct the view of the heritage Parvati
site. The SRA scheme has also been impacted by the reluctance of builders to construct housing
for slum dwellers and commercial spaces with leftover parcels.
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/pune-height-restriction-a-major-hurdle-to-sra-schemes-in-parvati-area/71275546
“We are still relying on plans for „relief housing‟. Builders will come in only if projects are
viable. Nobody‟s going to invest in commercial spaces unless they see a clear business plan.
This is why we've had delays in Parvati," said a city builder who is knowledgeable of the SRA
project.
These delays have caused havoc in the settlements.
“We have weak water supply, poor health and general hygiene concerns across the slum areas.
Certain short term measures have helped, but we need to think about the future,” said Ganesh
Kiratkarve, a resident of Parvati. Rajendra Nimbalkar, chief executive officer (CEO) of SRA,
Pune, said: “We need changes to the development rules around building. Such decisions are to
be taken at the state government level.”
As far as the BRTS is concerned, a ready reckoner is an IIT Bombay study that highlighted the
system's flaws. However, suggestions made by the experts remain on paper. The study had
reiterated the need to stop private cars from operating on the bus-only lanes.
Jugal Rathi, a member of the PMPML Pravasi Manch said every stakeholder has failed to
implement the BRTS project in a proper manner. “The project is virtually on its deathbed.
Crores in taxpayer money has been utilized, but there‟s still nothing to show for it,” he said.
_______________________________________________________________
Lucknow development body's nod to building plans must for new
power connections
MVVNL said the existing sub-stations were overloaded and could not bear more burden.
In reply, LDA said that power authority should not provide electricity to houses and
commercial units which have not been approved by it.
If you are planning to construct a housing or commercial unit in the city, make sure you get
your unit map approved from the Lucknow Development Authority (LDA) to
get electricity connection from Lucknow Electricity Supply Administration (Lesa).
LDA vice-chairman PN Singh has recently written to Lesa authorities requesting them not to
give new electricity connections to owners of houses or commercial units if they do not have
their maps approved by the development authority.
Lesa has agreed to the proposal and issued an order making it mandatory for power connection
applicants to submit registration number obtained from the development authority after getting
their maps approved, along with other documents to get electricity connection.
It started when Madhyanchal Vidyut Vitran Nigam Limited (MVVNL) wrote to LDA on
August 16 stating that it would not provide electricity to new apartments and houses built by the
development authority unless it provided land for constructing power sub-station.
MVVNL said the existing sub-stations were overloaded and could not bear more burden. In
reply, LDA said that power authority should not provide electricity to houses and commercial
units which have not been approved by it.
The authority also gave a list of 450 unauthorised units in Gomtinagar, Gomtinagar Extension,
Jankipuram and Kanpur road saying such units were behind overloading of sub-stations.
LDA vice-chairman PN Singh said, “These illegal housing and commercial units are burdening
MVVNL. We have got the reply from Lesa, and from now onwards, it has become mandatory
for everyone to get their maps approved from us to get electricity connection. LDA specifies a
number of housing and commercial units that should be constructed in a particular area of the
city. However, illegal constructions adversely affect the composition of town planning.”
________________________________________________________________
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/lucknow-development-bodys-nod-to-building-plans-must-for-new-power-connections/71275370
Nashik civic body launches amnesty scheme for tax defaulters
As per the scheme, defaulters who pay their dues in one go will get rebate in penalty,
warrant and notice fees.
The Nashik Municipal Corporation (NMC) has started an amnesty scheme for property tax
defaulters from September 16 to October 15.
As per the scheme, defaulters who pay their dues in one go will get rebate in penalty, warrant
and notice fees. The NMC recovers 2% fine per month on dues from the last day of paying
taxes.
Moreover, it also recovers expenses of notices and warrants issued to the defaulters.
As per the scheme, the property tax defaulters will get 75% rebate if they clear their dues by
Sept 30 and 50% if they pay between October 1 and 10. The defaulters will get 25% rebate on
penalty, warrant and notice fees if they pay tax the between October 11 and 15.
The NMC has also decided to take tough action against the property tax defaulters after the state
assembly elections. This is the final opportunity for the tax payers and they may get rebate in
penalty, warrant and notices fees.
“The amnesty scheme is already into effect from September 16. The NMC has collected
property tax amounting to Rs 3 crore after implementation of the scheme and it will be in force
till October 15. The scheme will give relief to tax defaulters as they will get rebate in penalties,”
an NMC official said.
The NMC has issued warrants to 1,252 property tax defaulters for not paying their dues despite
sending the notices twice. The defaulters owe Rs 15.75 crore and they have been given an
ultimatum of 21 days to clear their dues or face action of seizure and auction of their properties.
In the last financial year, the NMC had collected property tax amounting to Rs 112 crore. It was
for the first time that the NMC‟s property tax collection target had touched Rs 100 crore.
Now, the NMC has set a property tax collection target of Rs 250 crore for the current financial
year 2019-20, but it has so far collected only Rs 65 crore.
______________________________________________________________
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-civic-body-launches-amnesty-scheme-for-tax-defaulters/71271703
Three years on, RERA yet to be formed in Kerala
The selection committee constituted for choosing chairperson and members of RERA had
received 14 applications for the post of chairperson and 21 applications for the post of full-
time member.
As the state comes face to face with one of the worst ever real estate crises arising out of the
Maradu issue, the government continues to drag its feet over the formation of real estate
regulatory authority (RERA) in the state.
In August, the reply from the office of LSG minister to an RTI application showed that the file
related to RERA was in “circulation” and information would be furnished once file was
available after circulation.
Earlier queries to departments of local-self government and law evinced replies which said that
LSGD had no information regarding report of selection committee while law department replied
that the file on this subject was returned to office of LSG minister on May 2, 2019.
The selection committee constituted for choosing chairperson and members of RERA had
received 14 applications for the post of chairperson and 21 applications for the post of full-time
member.
The latest status compliance report prepared by ministry of housing and urban affairs on
implementation of RERA shows that the interim regulatory authority formed by the state has
not processed a single complaint till date. Kerala is one among the eight states/Union territories
which are yet to set up a real estate appellate tribunal and one among the six states which have
failed to operationalise websites under the provision of RERA. A total of 44,295 real estate
projects and 35,031 real estate agents have registered so far under RERA across the country.
The state government had issued notification for the appointment of chairperson and members
of the proposed RERA two years after RERA Act 2016 came into force.
The Act, which was passed by Parliament to introduce governance in real estate sector, had
come into force in May 2016. Although projects completed before the notification of the Act do
not come under the ambit of RERA, lack of a regulatory body has been hurting the consumers.
The rules say that the chairperson and other members of the authority shall be appointed by the
appropriate government on the recommendations of a selection committee consisting of the
Chief Justice of the high court or his nominee, the secretary of the department dealing with
housing and the law secretary.
Newspaper/Online ET Realty (online)
Date September 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/three-years-on-rera-yet-to-be-formed-in-kerala/71268844
The selection committee constituted by the government had submitted its recommendations to
the government in the beginning of 2019. The government has however sat over the
recommendation owing to a reported conflict of choice over selection of chairperson.
________________________________________________________________
Rs 2,500 crore exposure to HDIL pulled PMC Bank down
Sources told Mumbai Mirror that the biggest reason for RBI’s punitive action was a loan
of Rs 2,500 crore to the now bankrupt real estate firm Housing Development and
Infrastructure Limited (HDIL).
A single account is responsible for the downfall of the Punjab & Maharashtra Cooperative
(PMC) Bank, which was launched in a tiny room in Sion Koliwada back in 1984 and grew into
a 137-branch network with more than half of its branches in the Mumbai Metropolitan Region.
The RBI yesterday put a slew of restrictions on the bank for six months citing several regulatory
lapses, primarily massive under-reporting of the non-performing assets (NPAs).
Sources told Mumbai Mirror that the biggest reason for RBI‟s punitive action was a loan of Rs
2,500 crore to the now bankrupt real estate firm Housing Development and Infrastructure
Limited (HDIL).
This newspaper has learnt that the PMC Bank‟s auditors did not classify the loan to HDIL as an
NPA despite the HDIL defaulting on repayments, and the RBI finally put its foot down and
termed the loan as a “complete loss”.
“The RBI guidelines in such cases say that the bank must make a provision for the loss. The
PMC Bank‟s cash reserves stand at around Rs 1,000 crore, well short of the Rs 2,500 crore loan
granted to the HDIL,” the source said.
When banks are asked to make provision for the NPAs, it basically means they must deduct the
NPA amount from their profits. For instance, if a bank‟s annual profit is Rs 500 crore and it is
asked for make a provision for an NPA of Rs 400 crore, its profit then stands at Rs 100 crore.
The HDIL spokesperson did not respond to queries from this newspaper and the RBI refused to
divulge into the details. A source associated with the PMC Bank said that the RBI was
convinced the loan to HDIL will have to be completely written off.
“In case the RBI felt that the loan was not a complete loss, the PMC Bank would have to make
provision for 10% of the total loan, for which it had the resources. The fact that the RBI has put
severe restrictions on the bank is proof enough that it considers the entire loan to HDIL as
NPA,” the source said.
The major restrictions on the PMC Bank include capping withdrawals at Rs 1,000 per customer
during the six-month period and banning the bank from extending new loans. The bank has also
Newspaper/Online ET Realty (online)
Date September 25, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/rs-2500-crore-exposure-to-hdil-pulled-pmc-bank-down/71286000
been barred from granting or renewing loans and advances, making any investment, incurring
any liability including borrowing funds and acceptance of fresh deposits, disbursing or agreeing
to disburse any payment whether in discharge of its liabilities and obligations without the RBI‟s
consent.
The bank cannot enter into any arrangement for sale, transfer or otherwise dispose of any of its
properties or assets, even as the RBI clarified that the restrictions should not be construed as
cancellation of PMC‟s banking licence.
As per the bank‟s annual report, its net profit declined marginally 1.2% to Rs 99.69 crore for the
year to March 2019, while its net NPAs more than doubled to 2.19% from 1.05%.
The development comes amidst the growing gloom among the public already battling a
deepening slowdown which has resulted in job losses and rising prices of essential goods. The
scenes outside the PMC Bank‟s headquarters in Bhandup conveyed the chaos across the city as
hundreds of depositors rushed in on hearing the news of the bank going „belly up‟.
Serpentine queues formed as early as 6 am yesterday outside the branches of the Punjab and
Maharashtra Cooperative (PMC) Bank across the city after the news of the Reserve Bank of
India (RBI) restrictions on the bank became public.
Several people broke down in tears after being told that they can only withdraw up to Rs 1,000.
Many of these had fixed deposit accounts worth lakhs of rupees in the bank, while many others
had salary accounts which helped them meet their daily expenses.
The PMC Bank has around Rs 11,000 crore of public deposits. Those who rushed into the
branches speak for itself the profile of PMC Bank customers: autorickshaw and taxi drivers,
small-time businessmen, pensioners and homemakers, and the elderly. As the number of
panicked customers began to swell and tempers frayed, the bank had to call for police
protection both for its headquarters as well as at other branches.
Vidyadhar Anaskar, president of the Maharashtra Urban Cooperative Bank Federation, said that
the RBI may have acted in haste. “In case of dispute between the bank‟s auditors and the RBI,
there should be an appellate authority to decide on the matter. Both the auditors and the RBI
rely on the same set of documents to identify the NPAs. If the bank‟s auditors are found to be
right, who will compensate for the loss of reputation?” Anaskar asked.
________________________________________________________________
Greater Noida: Bail pleas of 19 builders rejected over illegal
constructions in Shahberi
Dismissing the bails, the court observed that the construction and sale of flats and houses
was done illegally in the area notified by the GNIDA in 2013.
Anticipatory bail pleas of 19 developers were rejected on Tuesday by a court here which was
hearing cases connected to illegal construction of high-rise buildings in Greater
Noida's Shahberi village.
Additional Sessions Judge Indrapreet Singh Josh also directed Greater Noida Industrial
Development Authority (GNIDA), district administration and police to take action within three
months against their officials who failed to prevent illegal construction in the area.
Dismissing the bails, the court observed that the construction and sale of flats and houses was
done illegally in the area notified by the GNIDA in 2013.
The Allahabad High Court too had in 2014 upheld that the region concerned in Shahberi
belonged to the GNIDA, the court noted, as it pulled up the local authority, administration and
police officials for inaction during four years while illegal constructions mushroomed.
On July 17, 2018, two adjoining buildings had collapsed in Greater Noida's Shahberi village,
leaving nine people, including a child and two women, dead.
Probe reports by administration and local authorities found that the buildings had come up
illegally, without any proper approval, as did several others which mushroomed over the years
in Shahberi, less than 50 km from Delhi.
Some of the accused developers who applied for anticipatory bail argued in the court that the
land was their private property and all construction including getting electricity, sewer
connections and even lift in some buildings was done through proper process.
"Prima facie it appears that the bail applicants did not comply with the high court order and
constructed buildings on the plot and sold them off illegally....
"Here it would be accurate to say that despite the notification and high court order, GNIDA
officers did not convey the order/instructions to local departments otherwise illegal
constructions could have stopped in the area concerned," the judge said.
Newspaper/Online ET Realty (online)
Date September 25, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/greater-noida-bail-pleas-of-19-builders-rejected-over-illegal-constructions-in-shahberi/71285935
He also pulled up the GNIDA for not fulfilling its responsibilities which led to illegal
construction in the area and loss of innocent people's savings.
"Had the GNIDA timely informed local departments, it would have prevented illegal
construction and sale of flats, hard earned savings of common man who bought flats there. The
future of these buildings is uncertain. Around 1,500 such illegal buildings are said to be there in
the area which are to be demolished," the judge added.
"There are lot of high-rise buildings in the area concerned and it is clear that such constructions
cannot be done in secret or done overnight. It is a process of years and it was the responsibility
of GNIDA and its officials to stop it. The GNIDA could have stopped it at initial level only.
"CEO GNIDA, district administration and district police are expected to take action against
officials of their department involved in this episode. The action should be ensured within three
months and the court be then apprised of the development," he added.
So far, over 50 FIRs have been registered against rogue builders over illegal constructions in
Shahberi and nearby areas.
As many as 257 people have been accused in these cases and more than 50 arrested so far, the
officials said.
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