Tuesday, 21 November 2017

RERA helps Haryana mop up Rs 1,170 crore as EDC from realtors

HRERA cannot directly claim EDC but it is issuing letters to developers through the department of town and country, saying registrations won’t happen unless EDC dues were cleared.

GURUGRAM: The interim Haryana Real Estate Regulatory Authority (H-Rera) has recovered Rs 1,170 crore in external development charges(EDC) from developers across the state in just three months, from August to October this year.

According to officials, the amount has been recovered from developers who had not paid the mandatory EDC for their real estate projects in the state but had to do so to get their new projects registered under the new real estate law.

HRERA cannot directly claim EDC but it is issuing letters to developers through the department of town and country, saying registrations won’t happen unless EDC dues were cleared.

Dilbagh Singh Sihag, executive director of the interim H-Rera, said the EDC collection was a major achievement for the newly formed body and might cross the Rs 2,000 crore-mark as more registrations happen under the new law. He, however, did not specify the number of developers from whom the charges have been recovered.

EDC is collected by the government for infrastructure development.

The interim H-Rera was instituted in July and the state government has promised to appoint the permanent body by the end of the year. “Even though the permanent H-Rera is under formation, we have been working full time and issuing notices to all erring developers over EDC and for not registering their projects under H-Rera or advertising projects without registration under the act,” Sihag said, adding the H-Rera website would be ready in another two months.

Sources from the industry confirmed the government had been issuing letters repeatedly to developers, asking them to pay EDC. State finance minister Capt Abhimanyu Singh had said at an event earlier this year that developers owed the government Rs 17,000 crore in EDC, in Gurgaon and Faridabad alone. Chief minister Manohar Lal Khattar on a recent visit to Pataudi had also asked developers to clear their dues.

Opposition leader Abhay Singh Chautala had recently written to Khattar, asking him to not appoint retired bureaucrats who were connected to “controversial” land deals in the state in HRera. Following this, a retired Haryana Civil Services officer had filed a petition in the Punjab and Haryana high court, alleging that the appointment criteria was tailormade to suit a few officers. All this has delayed the setting up of the permanent HRera and it remains to be seen if it gets done by the end of this year.

Realtors owe the state government Rs 18,563 crore in the form of EDC. Of this, the realization of Rs 4,322 crore is under doubt because of legal challenges.

Saturday, 11 November 2017

Over 1000 new FPIs registered with SEBI

Over 1,000 fresh foreign investors were registered with Sebi in April-September 2017-18, primarily due to their continued interest in the Indian capital markets, latest data from the regulator showed.

This comes on top of close to 3,500 new foreign portfolio investors (FPIs) registering with Sebi in the past financial year.

According to Sebi data, the number of FPIs with the regulators approval increased to 8,826 at the end of September 2017, from 7,807 at March-end, resulting in an addition of 1,019.

“The reason for increasing FPI registrations is continued interest in the Indian equity, bonds and real estate,” said Arvind Chari, head, fixed income and alternatives, Quantum Advisors.

“Besides, the end of the earlier FII/sub-accounts regime, which ended in September 2016, necessitated all such entries to register as FPI,” he added.

Further, market experts are of the view that several measures taken by the Sebi added to Indias attractiveness.

Also, foreign investors have pumped in more than Rs 95,500 crore into the Indian capital markets – equity and debt – during the period under review.

In June, the board of Securities and Exchange Board of India (Sebi) decided to ease the entry norms for overseas investors by permitting direct access to FPIs from eligible jurisdictions.

Recently, Sebi raised FPIs investment limit for government debt, permitted them to invest in unlisted corporate debt as well as securitised debt instruments and allowed direct entry to well-regulated foreign investors to invest in corporate bonds.

In a big revamp, Sebi in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs. They have been divided into three categories as per their risk profile and KYC (know your customer) requirements while other registration procedures have been made simpler.

Tuesday, 7 November 2017

North Mumbai to be the next place for realty growth

Owing to massive infrastructure push by the state government towards easing commuting in western and eastern corridors of the megapolis, northern region will continue to be at the epicentre of real estate activities in future.

“North Mumbai has been very active on real estate and infrastructure front off late. Connectivity with this region has improved substantially due to the various projects undertaken by the government,” Jone Lang LaSalle Head Research and REIS Ashutosh Limaye said.

The north Mumbai region spans from Bandra to Dahisar, from Kurla (Chunabhatti) to Mulund and from Kurla up to Trombay Creek.

According to JLL, north Mumbai has about 15 million sqft (square feet) of Grade A office space and more companies are choosing to move to this area.

“North Mumbai is unlocking its potential to new scale and will continue to be at the epicentre of the real estate and infrastructure activities in future as well,” he said.

According to JP Infra Chief Operating Officer Ajay Nair, the infrastructure projects undertaken in this region will result in increased residential and high quality social infrastructure developments in all the new micro markets here.

Coastal road, Mumbai Trans Harbour Link, Mulund Goregaon link road, Colaba-Seepz, Dahisar to DN Nagar and Dahisar east to Andheri metro corridors and elevated roads are some of the major projects the government has undertaken to improve the east-west connectivity.

“Infra push has resulted in real estate boom in northern Mumbai offering amenitised products even in lower ticket bracket from branded developers for work-life balance and luxury living,” Omkar Realtors Director Devang Varma said.

Ravi Group Director Gaurav Shah said that from the perspective of investment in residential in south Mumbai is very capital intensive and therefore the northern region is becoming as a preferred investment destination.

He further said, south Mumbai is continuing to face a space crunch and non-availability of smaller tickets size apartments and, therefore, the micro markets like Goregaon, Malad, Kandivali, Mira Road, Powai, Vikhroli, BKC East, Ghatkopar and others are witnessing an emergence of budget homes offered by varied developers like JP Infra, Sai Developers, Lodha Builders, Ravi Group of Companies with options ranging from 1, 1.5 and 2 BHK apartments in the price bracket of Rs 40-70 lakh.

Friday, 27 October 2017

From Nov 1, govt owned properties to be rented out through online service in Maharashtra

In Mumbai city alone, there are over 1,200 leased properties by Maharashtra government.

MUMBAI: The Maharashtra government has shifted annual rent agreement renewal procedures within the departments to its digital platform.

From November 1, the government owned properties will be rented out through online service -- which will essentially save time of the authorities.

A Government Resolution (GR) issued yesterday stated that there are several rent agreements processed by the Public Works Department (PWD) every year, where government owned land or buildings are rented out for public interest.

Henceforth, such agreements will be carried out through e-rent service, provided on the website www.mahapwd.com.

In Mumbai city alone, there are over 1,200 leased properties by Maharashtra government.

The actual number of properties leased by Maharashtra government across the state would be huge and with online processing of lease agreements, it will save a lot of time and money of people from outstation who had to visit to Mumbai for renewal of fresh lease agreement, said a senior officer from PWD department.

The executive engineer of PWD department from respective district has been given the responsibility to take final decision in lease agreement procedures, mentions the GR.

It has also mandated PWD to publish a division-wise base rate at the beginning of the every financial year for easy calculation of rent.

The GR has further given a detailed list for calculating the rent for buildings with various amenities.

Monday, 23 October 2017

Maharashtra's housing societies in a fix over reserving posts for disadvantaged classes

The rules, which were introduced in 2014 but are being enforced strictly only now, are applicable to societies with less than 200 members. Such societies are categorised as D-Class

Residents slam ‘impractical’ rules which require small co-op societies to reserve spots in managing panels for members from disadvantaged classes.

Co-operative housing societies are baulking at new government rules which require them to conduct elections under a state body’s direction and reserve some posts in their managing committees for members from disadvantaged social classes.

The rules, which were introduced in 2014 but are being enforced strictly only now, are applicable to societies with less than 200 members. Such societies are categorised as D-Class.

Many residents Mirror spoke to said their societies barely had enough members in the general category to fill committees, leave alone appointing people for the reserved categories.

“These rules are impractical. They were drafted for sugar co-operative societies. How can the government apply them to small housing societies?” said Nitin Gadekar, a resident of Sukh Nivas on 17th Road, Khar West. “Not every society has members from underprivileged classes. So what should they do in that case?”

There are 30,447 D-Class societies in Mumbai. The changes introduced under the Maharashtra Co-Operative Societies Act, 1960, require them to have a managing committee with a strength of 11. Two posts will be reserved for women and three for members from disadvantaged classes such as Schedule Castes and Scheduled Tribes. It is mandatory for the colonies to conduct polls under the supervision of the Pune-based State Co-operative Election Authority. Also, the office-bearers will have to undergo training to understand the workings of a co-operative society.

“We are a small society with only 15 members and we will have to call a high-ranking official from Pune to conduct elections. This is ridiculous,” Gadekar said. “There is no clarity on how election training will be conducted. Most societies are not even aware of the changes.”

The State Co-operative Election Authority has roped in the Maharashtra Societies Welfare Association to organise training and guidance camps.

Rakesh Nangia of Khar Modern CHS said his society had only five active members and it would find it hard to comply with the new rules. “One member sold his property and a tenant has been staying there for the past 60 years. There is nobody to run the society,” he said.

Akash Bhatia of Anjali CHS in Mahim said the colony mostly had female members in their eighties and they cannot contest elections.

Myra Lewis from Parmeshwar Darshan CHS on 2nd Hasnabad Road, Santacruz, said being an East Indian, she had filed her nomination as an OBC candidate. “But we don’t have any SC/ST candidates and we won’t be able to fill up that vacancy,” she said.

Mahendra Mhaske, district deputy registrar III, said if societies didn’t have members from the reserved categories, the corresponding positions in the managing committees would remain vacant. “Society representatives will have to undergo training. It’s compulsory. They should be aware of all the provisions of the Maharashtra Co-operative Societies Act, and the duties,” he said.

He added that D-Class housing societies would have to submit their voter lists to the respective ward officer.

These changes came into effect in November 14, 2014, but officials learned only recently that most colonies were not aware of it.

Monday, 16 October 2017

Including consultancy under Construction PE to impact realty

Inclusion of consultancy services under Construction PEs, foreign firms engaged in construction activities in the country, is likely to impact the real estate sector, says a PwC report.

PE (Permanent Establishment) is a fixed place of business which generally gives rise to income or value-added tax liability in a particular jurisdiction.

As per the report, tax-related issues pertaining to Construction PEs are on the rise in relation to attribution of profits from offshore supply and splitting of consolidated contracts.

The report mentions that though offshore supply is not taxable in India, revenue authorities may raise a question about whether offshore and onshore (PE-related) contract values have been split correctly.

India’s tax treaties provide for the constitution of a Construction PE if a foreign company undertakes activities in relation to a building or construction site, installation, assembly and connected supervisory activities, in India for a specified duration, it said.

In November 2015, the Organisation of Economic Cooperation and Development (OECD) issued its Action Plans (APs) on Base Erosion and Profit Shifting (BEPS).

In cognisance with one of the APs, the ‘Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting’ (MLI) was signed in Paris, France, on June7, 2017. India was one of the signatories.

The report said that according to the provisional list of India’s reservations, submitted on the MLI, it has agreed to implement the suggestions of the MLI in relation to Construction PEs.

“Inclusion of consultancy services under Construction PE and the PPT (Principal Purpose Test) is likely to affect the real estate, construction and EPC sectors in India adversely.

“Foreign companies may need to revisit their arrangements in order to ascertain the impact of these changes,” said the report.

Friday, 13 October 2017

Greater Noida nod to 10% initial payment for housing land

According to experts, the land allotment policy, which was revised by the Mayawati-led BSP government in 2009, is the cause of the builder-homebuyer impasse at present

GREATER NOIDA: After Noida and Yamuna Expressway Industrial Development Authorities revised their land allotment policy in June this year, Greater Noida Industrial Development Authority(GNIDA)has also changed its norms for allotting land in its area for group housing plots.

The proposal was approved in GNIDA’s 109th board meeting held on Friday.

From now, allottees of new group housing land will have to pay 10% of the land cost at time of registration of property and another 20% after allotment of land. The remaining 70% will be collected in 14 instalments in seven years. Currently, developers have to pay a mere 5% at the time of registration of property and 5% after allotment, while the balance amount is collected in 12 years, including a 2-year moratorium.

According to experts, the land allotment policy, which was revised by the Mayawati-led BSP government in 2009, is the cause of the builder-homebuyer impasse at present. Before the revision, those allotted land in Noida, Greater Noida and YEIDA areas had to deposit 30% of the land cost with the authorities. However, after 2009, builders allotted land had to pay only 10%, and were even offered a two-year moratorium, during which they did not pay anything.

“Our decision has been taken in order to help buyers,” said Debashish Panda, CEO, GNIDA. “This will ensure that only serious builders come forward to develop group societies,” he added.

Another decision taken by the Mayawati government in 2009 was revoked by the GNIDA board on Friday. “In 2009, due to economic slowdown, one-time lease rent on commercial property was reduced from 27.5% to 11%, and yearly rent from 2% to 1%. We have restored it to the original format,” Panda said.