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.