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.





Tuesday, 10 October 2017

Ease of doing business : Haryana to start joint inspection of single site

Urban Local Bodies Department Minister Kavita Jain said on Tuesday that it has been decided to have a single joint inspection by various government agencies


CHANDIGARH: Haryanagovernment has decided that a single, joint site inspection will be carried out by all concerned authorities such as fire, sewerage, electricity, labour (factory license), water department and internal departments responsible for granting construction permits in urban areas and Internal Development Charges regarding Ease of Doing Business (EoDB).


Urban Local Bodies Department Minister Kavita Jain said on Tuesday that it has been decided to have a single joint inspection by various government agencies, authorities or development authorities as by integrating the multiple site inspections into single joint inspection on one day of the week that is Tuesday in pre-construction, during construction and post construction phase.


She said that while the Pre-construction phase include site inspection for obtaining building plan approval by Urban Local Bodies, Town and Country Planning Department, Haryana Urban Development Authority (HUDA) and Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), during construction phase include inspection for temporary water connection by HUDA, ULB and Public Health Engineering Department and inspection for temporary electricity connection by Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN).


A department official said that the post construction phase include inspection for obtaining Occupancy Certificate by HUDA, HSIIDC, TCP and ULB, inspection for obtaining fire NOC by ULB, inspection (feasibility check) for obtaining water connection by PHED, HUDA, ULB in case of Municipal Corporation Faridabad and Gurugram, inspection for obtaining permanent electricity connection by UHBVN and DHBVN, inspection for obtaining certification of electrical installation by Chief Electrical Inspector and inspection for obtaining factory licence by Department of Labour.


He said that all the agencies and development authorities would conduct due site inspections and submit or upload online final site inspection report withing 24 hours to the concerned departments. All agencies and development authorities would ensure that the same inspector would not inspect the same establishment twice consecutively, he added.






Friday, 6 October 2017

Kerala set to get its first 'energy-efficient' buildings

Public works department (PWD) will construct the headquarters of registration department in Nemom and bungalow-cum-camp office of district collector in Pathanamthitta, in compliance with the ECBC rules.



KOCHI: Months after the Energy Conservation Building Code (ECBC) for efficient use and conservation of energy in building complexes was notified by the Centre, the state is all set to get its first two buildings complying with the norms. The buildings will come up in Thiruvananthapuram and Pathanamthitta.

Public works department (PWD) will construct the headquarters of registration department in Nemom and bungalow-cum-camp office of district collector in Pathanamthitta, in compliance with the ECBC rules. “The department decided to construct these buildings as a pilot project. We will look into whether the new concept is cost effective or not after the construction,” said chief architect of PWD Rajeev P S.

Energy Management Centre (EMC) is implementing the ECBC code in the state under department of power. The central government launched the code in 2007 as a first step towards promoting energy efficiency in the building sector.

“The code is currently applicable to only commercial buildings. The building should be designed in such a way that the energy consumption is minimum. Discussions are going on with local self-government department to bring the buildings, for which they give permission, to adhere to the Code. We need to include the Code in the Kerala Municipal Building Rules to implement it in LSGD level,” said an official in ECBC Cell.

The Code is applicable to new buildings which have a connected load of more than 100KW or greater than 120 kVA and to buildings having air conditioned area more than 500 sqm.



Tuesday, 3 October 2017

We expect a 15% growth this year: Anshuman Magazine, CBRE India

We are strongly focussing on residential market, working with developers by assisting them in marketing their projects smartly.



NEW DELHI: Anshuman Magazine, Chairman, CBRE India & South East Asia, CBRE India said that even with the slowdown in the real estate sector, they are expecting 15% growth this year. In conversation with ETRealty, Magazine talked about the impact of labour reforms on overall industry, current status of commercial sector and company’s future plan.

What is the growth plan of CBRE this year? Any particular segment that the company is focussing on?
Our core competency is real estate and within real estate we want to be in every segment. We are strongly focussing on residential market, working with developers by assisting them in marketing their projects smartly. Another segment we are focussing on is capital market. Last year, we raised funds worth more than Rs 7000 crore for developers. This year by June 2017, we have already raised around Rs 9000 crore and hope to raise more in coming months.

Labour laws have recently been revised, how has been its impact on the industry?
Labour cost has certainly gone up. If we compare it from America the cost are low, but we are in competition with South East Asian countries where the labour costs are competitive and this will take business away and hence, India will have to look at how it will be competitive at global market especially when it comes to services.

Also, some of the labour protection laws in the current form have become counterproductive. Because of these laws companies are not hiring more people. So instead of increasing employment, it is restraining employment.

But labour reforms are one of the key drivers for the future growth of India. The beginning has been made and going forward hopefully extensive labour reforms will increase employment in the country.

Do you see a demand-supply mismatch in commercial market in coming months? Where is the demand for office space moving towards?
Commercial market has done well in the last few years. In 2015, 43 million sq ft of office space was taken up in India while in 2016, 38 million sq ft of commercial space was taken up. In 2017, 38-40 million sq ft is expected to be taken up by the year-end. So, in the last three years, over 100 million sq ft of office space has been taken up in India which is unparalleled in the world.

As far as the supply is concerned, on an average 35-40 million sq ft has been added every year in the last three years. But much of this supply has not come in the locations where corporate would have liked. This year, new supply is also restricted because of the overall sluggishness in the real estate sector. Because of this the rentals have gone up for office spaces.

In Bengaluru, Mumbai and NCR, because of the limited supply and high rentals, companies are currently looking at more cost-efficient locations, hence are moving to secondary business districts (SBDs). Cities like Chennai, Hyderabad and Pune where rentals are comparatively lower are expected to benefit the most.

Which sector is expected to drive the office space take up?
In the last 10 years, IT/ITeS have been the largest occupier of office spaces taking up almost 85% of the total share. Though they will continue to hold the largest share, the percentage has dropped significantly to about 65%. This has been taken up by other segments such as BFSI, electronics and others. This year, Pharma sector is expected to take good amount of office space.

Also, we are witnessing that domestic companies have also started taking more spaces in order to expand.

Indian companies traditionally have bought office spaces rather than leasing? Do you think, with currently slowdown, especially in the IT/ITeS sector, these companies might have to rethink their strategy?
Yes, Indian companies used to invest in the office spaces because of the traditional mindset but slowly they are realising that owning a real estate makes their balance sheet asset heavy, hence it’s better to rent. Eventually companies which have unutilised office spaces are going to monetise it by sub leasing it or selling it.


Monday, 25 September 2017

Lending rate cuts key to economic recovery: Report

The report said that structural reforms take long time of 5-10 years to reflect in growth rate or reviving the stranded projects



NEW DELHI: Lending rate cutsare the only viable way to economic recovery as they would perk up demand and push investments, a report has said.

The report said that structural reforms take long time of 5-10 years to reflect in growth rate or reviving the stranded projects.

In a research note, BofAMLsaid, "Lending rate cuts hold the key to recovery. They would push up demand, put idle factories to work, and spark off investment when capacity is exhausted, in our view."

The report further said that with 2017-18 likely to see sufficient USD 35 billion of reserve money, lending rates should come off 25 bps (0.25 percentage point) before the October-March busy season sets in (and 50 bps by September 2018).

Lending rate cuts are the only viable route to recovery rather than structural reforms which can take a long time of around 5-10 years to reflect in growth numbers, it adds.

"We never shared the market enthusiasm for reforms (as it can take 5-10 years to show up in growth) or clearing 'stalled' projects (given idle capacity)," the report said.

According to BofAML, growth is stuck at an "anaemic 5 per cent (in old GDP series), well below our estimated 7 per cent potential", as high real lending rates are constricting domestic demand in a long global recession.

Regarding the Reserve Bank's monetary policy stance, the report said that the central bank is expected to key policy rates by 25 bps December 6 policy review meet as inflationis expected to normalise and stay well within the RBI's 2-6 per cent range.

The next policy review meet is scheduled on October 3-4.

RBI reduced the repo rate by 0.25 per cent to 6 per cent in August, citing reduction in inflation risks. The rate cut was the first in 10 months and brought policy rates to a near 7-year low.


Tuesday, 19 September 2017

CREDAI Maharashtra organizes study tour for realtors

The study tour helped the members in learning new way of planning which begins from the root level, duties of supervisors at the construction site



PUNE: In order to study new technology, mass conceptual housing and affordable housing projects, 161 delegates from 19 Cities of Maharashtra visited NCR Delhi recently, informed Shantilal Kataria, President- CREDAIMaharashtra.


The visit was planned at the construction sites of Ashiyana Group known for their project designed especially for senior citizens called Comfort Homes which not only takes care of physical comforts of the senior citizens but their emotional needs as well, Bharat City known for its conceptual housing, Bharat PreFab factorywhich is ideal for mass conceptual housing and thus making it most cost effective, and the high end projects of ATS and Affordable housing projects of Signature Global of Agarwal brothers.


“The study tours helps our members to know more about happenings in real estate sector, new inventions & technology, trending projects, creative executions etc Such tours further help them to refurbish their knowledge and apply the same in their own business”, said Kataria.


The study tour helped the members in learning new way of planning which begins from the root level, duties of supervisors at the construction site, the innovative way of store management, arrangement of training at site etc. The members, esp from Tier II and Tier III cities, also learned how the use of Mivan technology in mass affordable housing segment that can control the cost of the project.


It was also observed that the developers at Delhi do not only sale the apartments but also maintain them for year through the contract with Residential Welfare Societies. It is seen that these welfare societies maintain the buildings more professionally due to which the buildings which are 25 to 30 years old are still fresh.


Vishal Gupta-Owner of Asiyana Group,GetamberAnand- Owner of ATS, S.P.SING-owner of Bharat Prefeb factory, Pradeep Agarwal from Signature Global offered full support to the members in explaining and introducing to new technologies.



Thursday, 14 September 2017

5 key takeaways from 9th Annual National Association of Realtors India Convention

The focus at the convention was on the three tsunamis that have hit the real estate sector in the past one year namely demonetization, RERA and GST. Here are 5 takeaways from the convention.




Ashwini Priolker
CNBC-TV18
It was a buzzing morning at the 9th Annual National Association of Realtors (NAR) - India convention in Mumbai. More than 1,200 realtors and developers across India were present, belying the general belief that the residential real estate market is down in doldrums! The focus at the convention was on the three tsunamis that have hit the real estate sector in the past one year namely demonetization, RERA and GST. Here are 5 takeaways from the convention.
1) RERA Harsh on Brokers: No surprise that the Real Estate Regulatory Authority (RERA) was the main topic of discussion at the conclave. The realty broker community did feel that the RERA rules were unfair to them. "The penalty for the brokers and developers is the same. This is too harsh especially when the broker manages to get only 2 percent commission. Even the registration fee is very high", said Ravi Verma, Chairman NAR India. This was countered by industry veteran Anuj Puri, Chairman, Anarock Property Consultants, who has recently moved into residential business in India. He felt that RERA has been able to weed out unscrupulous fly-by-night brokers, leaving more room for serious professionals. “For the very first time brokers have been recognized as an industry,” said, Puri.
2) Dilution of RERA Rules by States: Industry leaders made no bones that RERA is simply not the last mile solution to all the problems plaguing the sector. In a strongly worded statement Nirnajan Hirnandani, MD, Hiranandani Group, said “RERA is a good law for all the future projects. But the problem related to ongoing projects is deep rooted, like cancer. These cannot be solved only with RERA. We need to find other solutions like alternative funding mechanisms and these projects to be taken over to be completed, with government intervention."
3) Impact of GST on Homebuyers: The implementation of Goods and Services Tax has left Real Estate Industry with more questions than answers. The tax neutrality of GST on prices of homes was challenged. “GST in its current form cannot be tax neutral especially in bigger cities like Mumbai where the prices are more than Rs 10,000 per sq ft,” says Boman Irani, Chairman & CEO, Rustomjee Group. So, buyers will have to be prepared to shell out more in bigger cities was the verdict.
4) Return of the Homebuyers: Despite several setbacks, first-time home buyers seem to be coming back especially for well located, well priced projects. According to the Anarock Chairman Anuj Puri, the sales in the past six consecutive quarters have been more than the launches across India. This clearly indicates that the launches have come down drastically, and unsold inventory is steadily getting absorbed. On home prices correcting further, the consensus was that most markets across India have already witnessed a 5-25 percent correction. The builders said the government was itself buying land at way above the market price for infrastructure in different locations, leaving little room for land prices to moderate. In fact, the circle rates do not even allow for property prices to fall below a certain point, added the panelists.
5) Consolidation on Cards: There was complete unanimity on the topic of consolidation. "Landowners who earlier had ambitions of becoming developers cannot do so, after RERA and now only the serious players will survive," added Kushroo Jijina, CEO, Piramal Finance. PE investments in the realty sector have touched Rs 15,000 crore amount in first six months of 2017, and a large part of these inflows have been to bail out cash strapped builders.




Monday, 4 September 2017

9th NAR-INDIA Annual Convention

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Thursday, 31 August 2017

MahaRERA gets 55 complaints against builders by homebuyers

These homebuyers of current projects that are registered with MahaRERA have complained about issues including delay in delivery and builders not signing agreement with them



NEW DELHI: Homebuyers filing complaints against realty developers has picked up, and the total number of such complaints filed with the Maharashtra Real Estate Regulatory Authority (MahaRERA) has now risen to 55. The authority has started hearing these complaints and rulings in two cases are expected within the next few days, said a top MahaRERA official.

“We have received total 55 complaints from homebuyers of projects registered with MahaRERA so far. Out of these, six complainants have taken it to the next stage by sharing hardcopies of documents required for the same,“ MahaRERA chairperson Gautam Chatterjee told ET.“We have already concluded hearings of two complaints and the final hearing will be done by the end of this month.“

These homebuyers of current projects that are registered with MahaRERA have complained about issues including delay in delivery and builders not signing agreement with them.

The number of complaints aga inst projects registered with MahaRERA had touched 30 until August 18.

The regulator has already received around 13,000 applications for registration of ongoing projects. Of these, MahaRERA has already processed and registered over 8,000 projects. Information on all these registered projects will be available on the MahaRERA portal from September 1.

Apart from this, the regulator will also be looking into complaints of those developers whose projects need to be registered, but have not done so until September 1. The regulator has also suggested that homebuyers can send emails about ongoing projects -which need to be registered but have not done yet -directly to the regulator.

Chatterjee has already warned that MahaRERA is planning to take strict action against those realty developers whose ongoing projects remain unregistered even after September 1.


Tuesday, 22 August 2017

MahaRERA warns strict action against ongoing projects not registered until September 1

From September 1, information on all these registered projects will be available on the MahaRERA portal


MUMBAI: The Maharashtra Real Estate RegulatoryAuthority (MahaRERA) is planning to take strict action against realty developers whose ongoing projects would remain unregistered even after September 1, said a top official of the regulator.

“We have received 12,700 applications for registration of ongoing projects. Out of these, we have already processed and registered 8,000 projects. Remaining applications will be processed over the next one week,” said MahaRERA chairperson Gautam Chatterjee. “We will deal with those (project developers) required to be registered but not registered until September 1 in a strict manner.”

From September 1, information on all these registered projects will be available on the MahaRERA portal. Following this, homebuyers can send emails about ongoing projects, which are required to be registered but have not registered so far, directly to the regulator, he said on the sidelines of a FICCI- Grant Thornton Advisory conference here.

So far, the regulator has received total 30 complaints from homebuyers of ongoing projects and most of them are related to the issue of delay in delivery.

MahaRERA has already taken a decision to slap a minimum penalty of Rs 1 lakh or an amount equivalent of its registration fees, whichever is higher, for ongoing projects registration applications to be received between August 3 and August 16.

The project registration fee ranges from minimum of Rs 50,000 to Rs 10 lakh depending on the size of the specific project.

This quantum of penalty was applicable for all applications received in the office of MahaRERA until 5pm of 16 August. Applications made for registration of ongoing projects after August 16 will be heard on case-to-case basis and the penalty will be decided by the authority. The builder then will have to explain as to why the application cannot be rejected.

The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1 this year. Maharashtra was one of the first states to notify its rules under the Act and establish authority MahaRERA.

The builders had to register their ongoing projects with their respective state RERAs within three months and deadline for the same was set at July 31. Without registering their ongoing projects, the developer is not allowed to undertake marketing or selling of their projects.

As the rules, if the promoter allegedly contravenes the provision of Section 3 – it deals with registration, selling and marketing of new and ongoing projects - he will be liable to pay penalty up to 10% of the project’s estimated cost as determined by the authority.

Until the midnight of July 31, the regulator had received total 10,852 applications for registration of ongoing projects across Maharashtra. The regulator had earlier decided to levy a fine of Rs 50,000 on applications received after the deadline of July 31 until August 2.

The regulator had received 500 applications for registration of ongoing projects until August 2.




Saturday, 19 August 2017

Mumbai civic body's nod to be made mandatory before any repairs to building columns

Investigations revealed that politician Sunil Shitap, main accused in the case, had tampered with the building's columns, even removing some of them, which eventually caused the structure to crash




MUMBAI: In a first, the Brihanmumbai Municipal Corporation (BMC) is moving to amend a crucial section of the Mumbai Municipal Corporation (MMC) Act 1888 following the ill-fated Ghatkopar building crash which killed 17 persons last month.

Investigations revealed that politician Sunil Shitap, main accused in the case, had tampered with the building's columns, even removing some of them, which eventually caused the structure to crash.

Hence, the BMC has decided to tread carefully when repairs in a building can affect its columns in any way. The civic body's law officer has been asked to remove 'guniting,' a form of repairs in which the column is exposed, from the ambit of 'tenantable repairs'.

Currently, guniting is included under section 342 of the MMC Act under which a person who intends to make any alterations or repairs to a building involving removal, alteration or re-erection of any part of the building, can do so without having to procure any permission from the civic body.

Tenantable repairs in the section clearly include guniting and plastering, painting, changing floor tiles, flattening of roof or repairing roof with different material. "However in case of guniting we have realized that plastering is done under tremendous pressure if the condition of the column has deteriorated. A weak column may not be able to withstand such force. For any work as such, the BMC's nod would henceforth be made mandatory," said a senior civic official. The plan is to incorporate guniting under section 337 of the MMC Act wherein a notice would be required to be given to the commissioner about the work to be undertaken.

The official said investigations into the Ghatkopar collapse are highlighting how Shitap tampered with the building columns causing it to crash and therefore the BMC wants to put in place measures so that such incidents can be completely avoided. "The investigation report is likely to table a few recommendations as well. However as an immediate measure, the law officer has been instructed to work upon amending the Act in a way that permission of the civic body is taken in case any person intends to tamper with the building structure to a large extent," said the official.

The report into the building crash is expected to be out only on August 21, said a member of the enquiry committee. "The report is in its final stages and it should be out by next week," said an official.


Tuesday, 8 August 2017

MahaRERA to fine 480 housing projects Rs 50,000 each for deadline breach

Consumer forums and registered builders across the state had been demanding that the MahaRERA issue a circular or direction to stop registration of projects without any penalty after the deadline


The Maharashtra Real EstateRegulatory Authority (MahaRERA) on Wednesday decided to slap a penalty of Rs 50,000 each on the 480 ongoing housing projects that registered with it after the July 31 deadline.

"We had allowed the developers to register their projects, but a decision on the penalty was pending. At a meeting on Wednesday, we decided to impose penalty on the projects registered after the deadline," said MahaRERA secretary Vasant Prabhu.

A decision on the penalty to be slapped on projects registered after August 3 will be taken later, he added.

Consumer forums and registered builders across the state had been demanding that the MahaRERA issue a circular or direction to stop registration of projects without any penalty after the deadline.

“We will convene another meeting to finalize the penalty to be slapped on projects registered on and after August 3,” Prabhu told TOI, adding that there would not be any deadline extension “as it is against the law”.

Section 3 of the Real Estate Regulatory Act (RERA) states that no extension for project registration will be allowed and developers registering their projects will be penalized under Section 59 (non-registration) of the law. The quantum of penalty can be 10% of the project cost and even imprisonment, if the builder concerned does not comply with the order.

Nearly 11,000 projects have been registered with MahaRERA as the deadline came to an end on July 31. Officials said developers still not under the RERA ambit can upload their documents on the website. “But each case will be examined for penalty,” an official said.

The MahaRERA website saw registration of 10,852 ongoing housing projects as the official deadline came to an end. Pune district topped the number of registrations with 2,908 (26.8%) applications.

In the meantime, a circular issued by the Union government stated that Maha-RERA has been entrusted with the additional responsibility of Dadar and Nagar Haveli and Diu and Daman territories in the absence of RERA authority in these union territories.