Apartment sizes shrink in 7 major cities in 5 years

In percentage terms, the drop is maximum in Bengaluru (21%), where the average apartment area has reduced from 1,750sqft to 1,375sqft

The average sizes of apartments promoted by the developer community have shrunk in all major cities in the country over the last five years as promoters have been making efforts to fit their projects into the "affordable housing" bracket.

In percentage terms, the drop is maximum in Bengaluru (21%), where the average apartment area has reduced from 1,750sqft to 1,375sqft. Pune recorded a 19% fall, NCR 17%, Mumbai Metropolitan Rrea (MMR) 17% and Chennai 15%, says a report by Anarock Property Consultants.

With a view to ensuring housing for all by 2022, the Union government has gone the extra mile to make things happen. Still, the developer community is nowhere near fulfilling the affordable housing demand in the country as most of them are not catering to the needy, says the study. "Unfortunately, what we have seen so far is more marketing hype than genuinely affordable housing," said Anarock chairman Anuj Puri.

The term affordable is being misused by most developers to show that they align with the ‘housing for all’ mission, he said. Going by the ministry of housing and urban poverty alleviation’s definition, dwelling units between 300sqft and 500sqft valued at less than `5 lakh are affordable for the economically weaker sections. The numbers change for the low income group (LIG) and middle income group (MIG). RBI’s norms to qualify for incentives meant for affordable housing say the dwelling unit should not cost more than Rs 45 lakh in metros and not more than Rs 30 lakh in non-metros. Out of 22,120 dwelling units launched in the second quarter of 2018 in the top seven cities, only 46% qualified for the affordable housing segment, he said. Of them, 6,530 units were priced at less than Rs 20 lakh per unit and the remaining were between Rs 20 lakh and Rs 40 lakh, he said. Between the first and second quarter this year, there was a 100% increase in supply in the affordable housing segment, said Puri.

Puri advocates promotion of rental accommodation for those who cannot afford to buy own apartments. "This is quite a challenge, considering that the Indian real estate market now favours end-users and remains unattractive for investors," he said. What is required is exempting affordable housing from GST altogether to attract more investors, he said.

https://realty.economictimes.indiatimes.com/

New Zealand passes ban on foreign homebuyers into law

Jacinda Ardern, New Zealand's popular 38-year-old prime minister, campaigned before September's election on a promise to clamp down on house price growth and reduce high rates of homelessness, in part by banning foreign buyers

WELLINGTON: New Zealand's parliament passed a law on Wednesday to ban many non-resident foreigners from buying existing homes, completing the Labour-led government's election campaign pledge.

Jacinda Ardern, New Zealand's popular 38-year-old prime minister, campaigned before September's election on a promise to clamp down on house price growth and reduce high rates of homelessness, in part by banning foreign buyers.

"This is a significant milestone and demonstrates this government's commitment to making the dream of home ownership a reality for more New Zealanders," Associate Finance Minister David Parker said.

Foreign ownership has attracted criticism in recent years as New Zealand grapples with a housing crunch that has seen average prices in the largest city, Auckland, almost double in the past decade and rise more than 60 percent nationwide.

House price growth has tapered off in the past year in part due to restrictions imposed on lending by the central bank, which was becoming alarmed at the potential financial stability risk of an overheated market.

Figures released by the Real Estate Institute of New Zealand on Wednesday showed median house prices had slipped 1.8 percent to NZ$550,000 ($360,140) in July from the previous month, although they were still 6.2 percent higher than the same time the previous year. 

The government slightly relaxed the proposed ban in June so that non-residents could still own up to 60 percent of units in large, newly built apartment buildings but would no longer be able to buy existing homes.

The International Monetary Fund called on the government in July to reconsider the ban, warning the move could discourage foreign direct investment necessary to build new homes.

Official figures suggest that the overall level of foreign home buying was relatively low - about 3 percent of property transfers nationwide. 

However, the data did not capture property bought through trusts and also showed property transfers involving foreigners was highly concentrated in certain areas, such as downtown Auckland and the southern scenic hot spot of Queenstown.

The majority of overseas buyers were from China and neighbouring Australia, according to Statistics New Zealand.

"Is the ban wise or useful? We think it's neither," said spokesman Dave Platter of Chinese real estate portal Juwai.com.

"Foreign buying ... tends to be focused on new development, making clear again that foreign investment leads to the creation of new dwellings. That's vital in a market with a housing shortage, like Auckland," he said. 

The government has said the ban would not apply to Australians and has been negotiating with Singapore, whose free trade agreement with New Zealand allows foreign ownership, on whether to grant an exemption.

($1 = 1.5272 New Zealand dollars)

(Editing by Paul Tait)

Credit : https://realty.economictimes.indiatimes.com/

Home Credit leases 1.5 lakh sq ft at Empire Tower in Navi Mumbai

The total lease tenure is five years including a rental reset after three years from now. The company will be paying rental of Rs 55 per sq ft a month, taking the annual payout to nearly Rs 10 crore

MUMBAI: Non-banking financial company Home Credit India Finance has picked up around 1.5 lakh sq ft of office space on lease in Reliable Group’s commercial project Empire Tower in Navi Mumbai’s Airoli locality, said two persons familiar with the development.

The total lease tenure is five years including a rental reset after three years from now. The company will be paying rental of Rs 55 per sq ft a month, taking the annual payout to nearly Rs 10 crore.

“The deal has been finalized and the terms have been agreed upon. The company has already started undertaking possession of the property for fit-outs and furbishing,” said one of the persons mentioned above.

Home Credit India has operations in over 120 cities across 20 states in the country. The company has a network of more than 26,000 points-of-sale (PoS) serving over 6 million customers. Its employee base stands at over 16,000, and the new office space is expected to accommodate 2,600 employees.

Empire Tower is an IT park, part of the 5-million sq ft commercial project Cloud City that has GE, HCL, Atop Origin, Sify, Honeywell, and Sutherland operating from the campus. Recently companies including Cipla, Aditya Birla Group subsidiary Birla Management Services, Tata Consulting Engineers, Mersk GSC, Invenio and EFC have picked up total 3.5 lakh sq ft office spaces here. 

Most of these companies have set up their back office processing and consulting units in Navi Mumbai, which has been emerging as a hub for these activities. Several companies have shifted their office catering to these services from central Mumbai, Powai, Vikhroli and Andheri-Malad belt to Navi Mumbai.

Reliable Group’s CEO Aaron Dlima confirmed the transaction, while ET’s email query to Home Credit India Finance remained unanswered till the time of going to press.

“We are strategically well placed as a location owing to the proximity of public transport system (rail & road) , close to residential and commercial areas of Thane & Mumbai and the solid new-age civic infrastructure of Navi Mumbai which has led to large scale relocation and expansion on this belt,” Dilima said.

Navi Mumbai is fast evolving as one of the key destinations for office occupiers in recent times and has recorded 5.9% sequential rental rise during the quarter ended June, said Colliers Research.

In the first half of 2018, office demand in this micro-market, which constituted 6% of the total absorption recorded in the city was driven by varied sectors including pharmaceutical, manufacturing, BFSI, IT/ITeS and flexible workspace operators. The micro-market is expected to command higher rents going forward aided by increasing demand from the BFSI sector for their back-office operations, Colliers explained.

With the latest lease transaction of Home Credit India Finance, the project’s occupancy stands at 40% and the company is in advanced talks to lease an additional 3 lakh sq ft here.

Piramal Fund Management, the financial services arm of Ajay Piramal-led Piramal Group, has deployed Rs 700 crore collectively against Reliable Group’s two commercial properties, Reliable Tech Park and Empire Towers. 

Credit : https://realty.economictimes.indiatimes.com/

Banks should refrain from raising interest rates: ASSOCHAM

The RBI itself has stated in the credit policy review document of August 1 that the "systemic liquidity has remained generally in surplus mode during June-July period"

MANGALURU: With surplus liquidity in the banking system, the banks should not rush to increasing their lending and deposit rates despite the Reserve Bank of India (RBI) raising the benchmark, repo rate, the ASSOCHAM has said.

"In the policy presentation on August 1, the top RBI brass said it clearly that there is generally a lag between the announcement of a rate change and transmission in the system. If this holds true in the cases where the repo rate was dropped, it should also hold true now that the benchmark lending rates have been tweaked up," ASSOCHAM spokesman said.

The RBI itself has stated in the credit policy review document of August 1 that the "systemic liquidity has remained generally in surplus mode during June-July period". While the RBI has been doing a good job in managing the day-to-day liquidity in the banking system, the banks need not rush into raising the lending rates. The credit demand has not been rising with much of a speed either. 

"The state of economy is poised at a very delicate stage. There is an upward growth bias; but it cannot be taken for granted. Interest sensitive sectors like automobile, consumer durables, real estate have a great multiplier effect and should not be burdened with the rising interest costs. Increased interest costs act like a double whammy. The cost of production goes up while consumer demand gets subdued," the spokesman said.

"Let there be a lag between the increase in the Repo rate and the transmission. On the other hand, the corporate India and the trade would use this window effectively for bringing in operational efficiency so that the effect on the ground does not show much of a cost change. The industry would be able to absorb the cost while the consumers should continue giving a demand push to the consumables," the chamber noted.

In this context, the GST Council, has done a commendable job in responding to the situation and dropping the GST rates on a number of items. "More items should be brought down from the 28 per cent slab to give a push to the consumer demand. Combined with operational efficiency, the demand should then remain strong. In the meanwhile, the banks should be refraining from raising the interest rates".

Credit : https://realty.economictimes.indiatimes.com/

Why Selling your home without a Realtor is a Nightmare you’d never want to see!

If you plan to sell your home without recruiting the services of a realtor, think again. You do not want to take such a massive risk while carrying out what is probably the biggest financial transaction of your lifetime, do you? By sidestepping this critical enabler, homeowners expose hard-earned money and valuable time to a larger risk, while frittering away some significant benefits.

Most buyers/sellers who opt for this route, usually want to forgo the commission paid to the agent but fail to pre-empt the valuable benefits he offers in return. In fact, surveys have shown that such properties usually sell for a comparatively lower price than those sold with the assistance of a professional realtor.

Before taking a decision, check out these proven benefits a realtor will bring to the table if you engage his services to buy or sell a property:

1.       Availability of Time: Given the tight work schedules, you actually do not have time to show around the home and play the role of a real estate agent. How will you manage showing the home while you are out on a business trip or a vacation? Your friendly, neighbourhood realtor is ready to showcase your property at a short notice and collect the right feedback from prospective buyers about it too, by asking the right questions (could you do that?). He will even offer solutions to problems a prospective buyer perceives, especially those that could come in the way of concluding a deal.

2.       Priceless Knowledge: The domain knowledge that a realtor possesses is truly invaluable and as a layman it is difficult to match up to it. He knows how to pick holes in the story that the property websites weave around the home and provide valuable insights to the prospect. He is aware of the history surrounding the home and is able to turn it into a selling point.

3.      Marketing awareness: While selling a property, image is of vital importance and you rarely get a second chance to create a good impression about your home. Professional realtors know how to “prepare” a home when a prospective buyer comes visiting or when property images have to be shared with an interested party. Marketing your property will need the expertise of a realtor and you wouldn’t want to miss out on this valuable quality for the sake of commission.

4. Experienced negotiator: When you engage a certified realtor and entrust the task of finding the right buyer for it, you get many bundled-up qualities too. His expert negotiation skills (due to the endless hours he has spent doing this) always keeps the buyer interested and he ensures that terms and conditions always work in your favour.

5.      Understands Closure: There are dozens of things to be taken care of, after the deal is sealed in your favour. With a realtor managing things for you, you can be assured that last-minute issues and unexpected delays at the registrar’s office or loan formalities are taken care of. He is qualified enough to carry out firefighting activities whenever needed and this truly makes a realtor an indispensable part of a buying/selling process of a home property

6.      Safety: With property portals and online agencies making the buying and selling easy, it has also attracted a lot of negative attention too. When you put up your home, its images and other details on the internet, you can expect unknown buyers wanting to see your home. You wouldn’t know the actual intentions or background of the so-called “prospect” since there is no agent who can verify that. Won’t this put your home and family at a risk? And all this because you do not want to pay a commission to the agent. Think again!

It makes great sense to appoint a certified realtor to help you to sell your property and avoid a lot of costly mistakes that could come back to haunt you in the future.

Use the professional services of a Realtor who not only helps you to protect your interests but will also justify your home’s value that is so rightly deserves.

Credit : Ramprasad Padhi

Founder & CEO – Mumbai Properties Consulting Pvt Ltd

http://www.mumbaiproperties.com/ 

Don't Hire the Wrong Real Estate Agent

Buying a home is the biggest investment you’ll likely ever make, and it has all sorts of implications for your personal and financial future. This is why it’s so important to work with the right agent.

Too many people don’t realize just how much can go wrong if they make the wrong hire. There are some very serious problems that can arise if you accidentally work with the wrong person to buy or sell a home. Here are some of them:

1. Not listening

A professional real estate agent (or any other professional for that matter) will take the time to listen and understand their client and the client’s needs. The wrong one, however, isn’t going to listen to what you have to say, and will instead focus on what they want for themselves.

This will set the precedent for the rest of the process and make any real estate transaction a miserable experience. An agent who doesn’t take the time to know your wants and needs will cause you stress, confusion and heartache.

2. Bad advice

If there’s one thing you need a competent agent for, it’s the advice they’re able to provide. A good agent will serve as your trusted advisor, guiding you through the myriad of decisions you’ll make when buying or selling a home.

A bad agent, however, will either give you advice that’s not based on any experience or research, or is just plain self-serving. This can cost you financially or prevent you from accomplishing your goals altogether.

3. Failed negotiations

Lots of people consider themselves good negotiators, but very few actually are. While negotiating might be just one part of real estate, it’s an important one. You need someone on your side who’s working in your best interests in a competent and effective way.

A bad agent will either negotiate in such a way that attainable deals fall through, or will simply negotiate in their own best-interests rather than the interest of their clients (you).

4. Lack of responsiveness

This may or may not be one of your pet-peeves, but unresponsiveness in something as complex as a real estate transaction can be an absolute nightmare for the person whose money, home, and future are on the line.

A great agent is available most any time you need them (within reason). The wrong one, however, will let your calls, messages, and emails go unanswered while you worry yourself sick about what’s happening (or not happening).

5. Missed opportunities

Real estate is a business that moves quickly, especially when the market is hot. Even when there’s high demand, there are still opportunities for buyers, and a good agent will know how to spot them and take advantage quickly.

The wrong agent will miss good opportunities because they’re unable to recognize them, will move too slowly and miss them, or just generally not care.

6. Legal pitfalls

Real estate is complex by nature, and legal questions arise on a frequent basis. Thankfully, good agents have the knowledge and resourcefulness to help you navigate them and can find solutions even if they’re not immediately apparent.

Hiring the wrong agent will mean that when the inevitable problems creep up during the transaction, they’ll either give you the wrong advice on what to do, or will simply look at you and shrug their shoulders.

7. The process won’t be enjoyable

There’s no rule that says a real estate transaction has to unpleasant. Yes, it’s a lengthy process that has lots of implications. But if you take a step back and think about it, buying or selling a home is usually a positive thing—whether it’s an upgrade, a money-saving downgrade, or a general lifestyle change. You should work with someone who can at least make it a pleasant experience.

And that’s the thing about hiring the wrong agent. They’re all but guaranteed to make the process one that you won’t enjoy.

So choose your next real estate agent wisely; your happiness—and the height of your high five when it’s over—will likely depend on it.

Credit : Ramprasad Padhi

Founder & CEO – Mumbai Properties Consulting Pvt Ltd

http://www.mumbaiproperties.com/

Realtors - Employing Technology for a Personalized Touch

With technology improving by the hour, the entire real estate process has undergone a huge metamorphosis, as every step, right from property listing to finalization of the deal, has been impacted by its presence. The transaction process of buying or selling a property can be a tedious one but the right combination of a professional realtor and technology can make it a seamless one for you.

Devices like tablets and mobile phones are commonly used and customers can choose either, to transact and communicate with realtors and vice versa too. Realtors get a better insight to their business and have better control over day-to-day operations. It provides some fabulous opportunities of delighting the customers as new technology are equipped with tools to give great experiences to the customer and realtor. Realtors who employ technology in their business to boost their service quality, are able to provide top quality experiences to their clients, without compromising on a much-needed human touch. 

Providing Benefits to the Customer
Many realtor firms focus and spend a lot on digital marketing, lead generation, email marketing, sms blasts etc. in the quest to uncover potential customers and to reach them. However, although technology has its own benefits, it is a direct referral from a satisfied customer that still leads the way. Realtors who focus on giving a fulfilling experience to their customers during the entire process of buying or selling their homes, are more likely of getting references. Remember, buying a home is a hugely emotional experience for most customers and as a realtor if you connect well at this level, you have earned a client for a lifetime.

 While the human touch is important, customers love when things are simplified for them and technology does this quite efficiently and in a seamless manner. After all, they are using technology to simplify their lives, beginning with the morning coffee to booking flight tickets to finding life partners. Prudent realtors ensure that technology is used in the right context and quantity with the human touch. For example, although communication has many channels at its disposal, a face-to-face meeting serves many purposes and is preferred when the issue is complex. Use technology to exchange information and set up meetings. All this leads to a highly positive experience for the customer.

Treating employees as customers
As a professional realtor, you will have a team of sales agents who reach out to customers on the phone or personally. For successful running of your business, it is necessary to attract new talent and retain them too, as they represent your organization, its values and ethics. Provide them with suitable means of online communications in the office or when they are on the move, since this will help them to give your customers an experience that is garnished with the right amount of human touch.

 Keep the team interested and engrossed in day-to-day work by providing online training, a powerful communication device and the freedom to reach out to customers in the most suitable manner. Elaborate use of technology to keep the team connected between themselves and their customers is often the key to attracting talent and employee retention. 

Embracing technology for smooth running of business
Gone are the days when one had to sift through stacks of documents to review them or comply with the authorities involved. Technology helps us to store files, documents, signatures, deeds and agreements in the digital format and thus can be retrieved without a hassle. No paperwork is inaccessible as scanned documents can be easily forwarded or presented before the relevant authority in quick time. This provides a truly improved experience to the customers. Employees too, have more time on hand to carry out the tasks they are supposed to, and connect to more customers to sell real estate. 

 Technology helps realtors to market their business well and reach out to customers quickly, thus leading to more closures. The use of modern communication devices, CRMs and marketing techniques can be useful to a certain extent but remember these are only a part of the entire process. Adding the flavour of human emotions and face-to-face communications is necessary for realtors to give a personalized touch to probably the most important transaction of your customer’s lifetime.

Credit : Ramprasad Padhi

Founder & CEO – Mumbai Properties Consulting Pvt Ltd

http://www.mumbaiproperties.com/

Realtors - Top Ten Creative Ideas to Give your Real Estate Marketing a Boost

Those who are a part of the real estate industry, especially Realtors who are involved in the buying and selling of property, will understand the challenges one faces in developing a unique competitive advantage. This is particularly true where there is a massive choice and carving a niche becomes absolutely critical.

If you are looking for inspiration and want to indulge in creative marketing, then here are a few top-of-the-line real estate marketing ideas to jumpstart the process:

1.      Weave a story around every property: As the tagline of a popular advertisement says “Har Ghar kuch kehta hai”, you could create a brand around every property you have in your list. Showcase a property by highlighting its most stunning features and use terms and phrases your client could easily connect too. Talk about inspiration and creativity if you know the prospect belongs to a relevant industry. Send him so carefully-selected images of the property or a professionally done video on WhatsApp to whet his appetite before showing the property. This will help in creating a positive image before the actual showing and will boost your chances of selling/renting the property

2.      Choose a special feature and highlight it: Although there are many financial implications of buying a home, the decision is mostly an emotion-driven one. As a realtor, identify a specialty of the home you are showcasing and make it a highpoint while presenting it to the client. If the residential complex has a huge, green garden as an amenity, highlight this when you know the client is a nature-loving one and wants to spend time away from the hustle-bustle of the city. If the couple have kids, paint a verbal image where they can see the little ones playing in the garden and using it as a playground.

3.      Advertise in the vicinity of good-looking homes: When you are searching the city for a place of your own, you often come across a gorgeous home or an attractive property that makes you wish you lived there. Flyers and posters near some of the beautiful homes in the city with a message that says “Want to live in a home like this one?” are enough to trigger an action in home seekers. Don’t forget to wait by the office phone as it will soon ring off the hook when you advertise in this way!

4.      Don’t miss your client’s housewarming party: After you have managed to crack that deal for your client, it is time to bask in its glory. If your client has organized a party or a puja, make sure you are invited to it. This is the time to let the select gathering of family and friends know that you are the guy who made this win-win deal possible. Your client is more than likely to introduce you to the guests and recommend your services to those who are on a house-hunting spree themselves. You could also offer to sponsor a portion of the party as a goodwill gesture and promote your services in a discreet manner.

5. Connect to an NGO: Every time you make a sale, donate some portion of your commission to an NGO or a charitable organization. Spread the word that you are associated with an NGO that works for the homeless or for orphans. Your client will feel proud to be associated with a realtor who takes CSR seriously and will gladly recommend your services to others. It could prove to be a tipping point if your client is torn between two properties and is quite close to taking a decision.

6.     Organize an event for new buyers: Home buyers are keen to get their queries solved about the home buying process, the legal formalities, moving into a new town or getting qualified for a home. Invite all your prospective clients for an informal do where their queries are solved by a living, breathing person and not a property website. Give a small talk about the things they need to consider while buying or selling or renting a place. Collaborating with interior decorators, home loan agents or movers & packers is a way of dividing costs since the target audience is the same for them too.

7. Drive the client to the property: It is a good idea to pick up the client from his home or a nearby locale while showing a property. It creates a good impression on the client and takes out the hassle of taking the public transport or use his car. It also gives you time to connect to the prospect and bond a little while you reach the destination. Arrange a car on hire if you do not have one and it will have a good impact on the client for a lifetime.

8.     Offer help with related things: Home hunters have many things on their mind while they are out looking for a roof on their head. Home loan, interiors, relocation, furnishing and school admissions are just a few that top the list. Provide as much help as possible especially if your prospect is new to the city. This will not only help you to close deals quickly but will generate a lot of goodwill too.

9.     Highlight pain points: While showcasing a property or advertising locally for it, focusing on the probable pain points your clients may face can draw attention. A paying guest will love to be freed of pesky landlords, strict rules, long commuting hours and congested homes. Target these areas while speaking to prospects and show them the brighter side of life to help them switch.

10.     Sponsor events when possible: Identify a few clubs in your city and sponsor a few events through the year, according to the client profile you cater to. If HNIs form a large portion of your client list and luxury apartments is your forte, then choose that exclusive club as your target. If you are a specialist with rental homes and budget apartments, the local club can be a wonderful place to be seen at. Decide on a budget and use it to connect to prospects where they are relaxed and unhurried.

It’s time to take a different approach while attracting clients since competition is growing by the day. Unique ways of connecting with prospective clients will certainly draw a lot more attention than traditional methods. So go ahead and try them out today!

Credit : Ramprasad Padhi

Founder & CEO – Mumbai Properties Consulting Pvt Ltd

http://www.mumbaiproperties.com/

Realtor to repay premium for not delivering promised view

The complainant homebuyer had booked an apartment in the developer’s project Xrbia Eiffel City Chakan PH2 situated at Chakan in Pune through a provisional allotment letter

MUMBAI: If a real estate developer has charged a premium for a specific view and the view no longer exists, the developer will have to refund the amount to homebuyers. In most property markets, realty developers usually charge an amount for this, implying an additional service provided to the consumer.

In a unique case, a homebuyer had filed a complaint with Maharashtra Real Estate Regulatory Authority (MahaRERA) against realty developer Xrbia Group stating that the developer had charged him a certain amount for premium view of a garden and other amenities.

The complainant homebuyer had booked an apartment in the developer’s project Xrbia Eiffel City Chakan PH2 situated at Chakan in Pune through a provisional allotment letter. However, the view now no longer exists as another building is coming up on the said location.

While the regulator has not passed any order specifically on this matter, the developer finally agreed to not charge the amount towards premium view from the homebuyer.

The developer submitted to MahaRERA that since the said premium view is not being provided, he will not charge the said premium amount towards the consideration price of the said apartment. The complainant homebuyer also agreed to the reduction of the premium amount from the balance consideration price.

Credit : https://realty.economictimes.indiatimes.com/  

BMC's new policy on dilapidated buildings in Mumbai may boost redevelopment

The new policy lists detailed guidelines for declaring private and municipal buildings in the city in C-1 category (dangerous and unsafe)

MUMBAI: The BMC has uploaded its new policy on dilapidated buildings on its website, which civic officials say will speed up the redevelopment process. Disputes between tenants and owners often lead to a delay in vacating a building and redevelopment drags on for years, said civic officials

The new policy lists detailed guidelines for declaring private and municipal buildings in the city in C-1 category (dangerous and unsafe); it doesn’t cover Mhada buildings, cess properties, and port trust and defence properties.

Under the new policy, the BMC will grant sanction for redevelopment—intimation of disapproval—only after an agreement providing permanent alternative accommodation in a new building or a settlement is arrived at between the tenants and landlord. No commencement certificate will be issued too till then. Also, if a BMC employee refuses to vacate a C-1 category building, despite alternative accommodation being provided, a departmental inquiry will be conducted against him for endangering the life and property of himself and others, and he will be suspended from service, pending inquiry. In case the occupier is a tenant, the agreement licence with BMC will be terminated and he will be evicted.

The BMC also introduced five technical advisory committees for the suburbs, the island city and municipal buildings to expedite the process of resolving disputes between tenants and owners over structural audits. Currently, there is only one such committee.

Credit : https://realty.economictimes.indiatimes.com/

Cabinet clears amendments to insolvency and bankruptcy code

Minister for Law and Justice Ravi Shankar Prasad, briefing reporters after the Cabinet meet said, "I cannot disclose anything because it's a new legislation except to reinforce that the Cabinet has approved it"

NEW DELHI: The Cabinet today cleared amendments to the Insolvency and Bankruptcy Code (IBC), incorporating changes suggested by a government appointed panel.

Minister for Law and Justice Ravi Shankar Prasad, briefing reporters after the Cabinet meet said, "I cannot disclose anything because it's a new legislation except to reinforce that the Cabinet has approved it".

Asked if the Cabinet has cleared some relief measures for home buyers as per the recommendations of the panel, Prasad said, "there is something called constitutional protocol. An Ordinance till it is approved by the President, I cannot speak about the details".

A 14-member Insolvency Law Committee had made suggestions to the Ministry of Corporate Affairs, including addressing woes of home buyers and making recoveries easier for lenders.

The panel had suggested that home buyers should be treated as financial creditors, which will allow them to equitably participate in an insolvency resolution process.

The panel has also suggested relaxations for Micro, Small and Medium Enterprises(MSMEs) under the IBC.

Credit : https://realty.economictimes.indiatimes.com/