Haryana : DTCP Hold Hearing for Architects Issuing OCs

10/21/2024 12:25:00 PM

Gurgaon: The department of town and country planning (DTCP) in Haryana has decided to offer architects, who issued occupation certificates (OCs) for four-storey buildings with stilt parking in violation of regulations, a chance to be heard. The director of the department, who took the decision, proposed imposing a fine of ₹2 lakh for each violation. Senior town planners (STPs) have been directed to conduct hearings for 18 architects involved in the issuance of illegal OCs. After these hearings, it will be determined whether their registrations will remain cancelled or if they will be allowed to continue by paying the penalty. STP, Gurgaon, Renuka Singh confirmed that "all legal procedures and investigations will be completed before any action is taken". OCs Despite Ban On Feb 23, 2023, the Haryana govt imposed a ban on the construction of four-storey buildings with stilt parking. However, several buildings in the city managed to bypass this regulation. These structures initially had plans approved for two or three floors but went ahead to construct four floors. With the connivance of certain architects, occupation certificates were issued for these illegal constructions. Following investigations, 18 architects were blacklisted for issuing OCs in these cases. Next Step One of the architects appealed to the director, saying he had issued the OC for only one building, which was later cancelled. "I acknowledge the mistake and have already cooperated by cancelling the OC. I request the department to consider my record and reinstate my registration," he said. He assured that no registration of any floor took place in that building and promised not to repeat the mistake in the future. Another blacklisted architect defended his actions, saying, "The department's guidelines were unclear when the OCs were issued. I acted in good faith, based on the approvals given at the time. It's unfair to blacklist us now for past decisions." He also called for clarity in the future to avoid similar issues. Action Taken The blacklisted architects include Pankaj Kumar, Amit Bhardwaj, Gajendra Kumar, Arun Kumar, Gaurav Singla, Neeraj Dixit, Anuj Yadav, Krishna, Manveer Bhardana, Prabhat Kumar, Puneet Kochar, Ritika Anand, Saurabh Kathuria, Himani Gupta, Vikrant Pundir, Ravi, Rohit Chugh and Ujjwal Saini. These architects were found complicit in issuing illegal OCs in collaboration with builders. In light of the violations involving four-storey constructions with stilt parking, the state govt has introduced new compounding rules. The hearing process will ensure that architects are given an opportunity to present their case before a final decision on their registrations is made. SOURCE : TIMES OF INDIA INDIA

Prestige Estate to Invest Rs 7000 Crore in Ghaziabad Township

10/21/2024 12:24:00 PM

Realty firm Prestige Estates Projects Ltd will invest around Rs 7,000 crore to develop a township in Ghaziabad as it looks to expand business in Delhi-NCR property market. Bengaluru-based Prestige Estates is building a commercial project at Aerocity in the national capital. It has also forayed into Delhi-NCR housing market by acquiring three land parcels in Delhi, Noida and Siddharth Vihar, Ghaziabad. Prestige Group Chairman and Managing Director Irfan Razack is bullish on Delhi-NCR residential market and said there is a potential to achieve Rs 10,000 crore worth of housing sales annually if the company is able to acquire land parcels consistently. In March, Prestige Estates Projects acquired 62.5 acres at Siddharth Vihar, Indirapuram Extension, Ghaziabad to develop a township. The township project 'Prestige City' is expected to be launched this quarter after getting all the necessary approvals. "We bought this land parcel for more than Rs 450 crore. We will be developing 10 million square feet of residential space in this large format project. There will be some component of retail and education as well," Razack said. Asked about project cost, he said it should be around Rs 6,000-7,000 crore. Razack said the land has already been purchased and the construction cost will be met through collection of funds from customers against sales bookings. He said the company would be targeting end users primarily, offering two, three and four bed room apartments in this township project. At the time of land acquisition, Prestige Estates had said that the company expects revenue of more than Rs 10,000 crore from this project. Asked about other housing projects in Delhi-NCR, Razack said the company has bought one acre land parcel in central Delhi to develop an ultra-luxury housing project. The company is waiting for approvals. That apart, he said the company few years ago tied up with a landowner for a housing project at Sector 150, Noida. He said the Noida project has not been launched yet in the absence of approvals, but hoped that the Noida authority would soon start giving approvals in Sector 150 Noida. On the commercial project at Aerocity, Delhi, Razack said the hotel would be completed by end of the next year. He said the 7 lakh square feet office space in the Aerocity commercial project has been fully leased to marquee corporate clients. Razack said the company is evaluating more land parcels in Delhi-NCR to create pipeline for future development. "There is a huge business potential in Delhi-NCR. We can easily do sales of around Rs 10,000 crore every year in Delhi-NCR," he said. Asked about challenges in entering a new market, Razack said the company studies local market dynamics and customers preference before foraying into new geographies. Prestige Group, one of the leading real estate developers in the country, has a legacy of over three decades in real estate development. It has diversified business model across various segments -- residential, office, retail, hospitality, property management and warehouses with operations in more than 13 major locations in India. The Prestige Group has completed 300 projects spanning a developable area of 190 million square feet as of June 2024. During 2023-24 fiscal, Prestige Estates clocks a record sales booking of Rs 21,040 crore and has given a guidance of Rs 24,000 crore for the current financial year. Prestige Estates recorded sales of Rs 4,022.6 crore during July-September as against Rs 7,092.6 crore in the year-ago period. During April-September, the company's sales bookings fell to Rs 7,052.2 crore as against Rs 11,007.3 crore in the corresponding period of the preceding year. Source : Times of India INDIA

Oberoi Realty Reports 29% Increase in Net Profit, Reaching Rs 589 Crore

10/19/2024 12:39:00 PM

Real estate major Oberoi Realty posted a net profit of Rs 589 crore for the second quarter of financial year 2025 (Q2 FY25), up 29 per cent year-on-year (Y-o-Y). The company’s total revenue for the quarter stood at Rs 1,358.62 crore, up 9.23 per cent on an annual basis. The company’s total expenses declined by 10.6 per cent Y-o-Y to Rs 578.64 crore. Segment-wise, the company’s real estate business generated revenue of Rs 1,276.14 crore, almost 94 per cent of its total revenue. The company also reported a bookings value of Rs 1,442.46 crore during the quarter, almost 50 per cent more than the corresponding period of the last financial year. Vikas Oberoi, chairman and managing director of Oberoi Realty, said, “Our commitment to delivering exceptional living experiences has solidified our position as a leading player in the market. With a robust launch pipeline, we are well-positioned to capitalise on the growing demand for premium residential properties and drive sustainable growth.” Moreover, the company’s board of directors, in its meeting held on Friday (October 18), declared a second interim dividend for FY25 at the rate of Rs 2 per equity share, which is 20 per cent of the face value of equity shares of Rs 10 each. The company stated that November 4 is the record date for the purpose of payment of the said interim dividend, and the interim dividend will be paid starting from November 14, 2024. Earlier, the company’s board approved a plan to raise funds of up to Rs 1,500 crore by way of the issue of senior, rated, listed, secured, tenable, redeemable, and non-convertible debentures on a private placement basis. The company’s board had also previously approved raising funds of up to Rs 6,000 crore by way of equity and/or equity-linked instruments through private placement, including a qualified institutional placement. Additionally, during the quarter, the company entered into two major development agreements in the Mumbai metropolitan region. One agreement was for the development of land measuring about 12,790 square metres at Adarsh Nagar, Worli, and another for the development and redevelopment of land measuring around 2,576 square metres in Bandra West. In August 2024, the company acquired Nirmal Lifestyle Realty Private Limited (NLRPL) under the Insolvency and Bankruptcy Code, 2016. The acquisition involves paying creditors Rs 273 crore as well as the Corporate Insolvency Resolution Process (CIRP) costs. Source : Economic Times INDIA

Greater Noida Authority Achieves Rs 533 Crore in Commerical Plot Auction

10/19/2024 12:38:00 PM

Greater Noida Industrial Development Authority (GNIDA) has auctioned 9 plots for commercial development for Rs 533 crore against the reserve price of Rs 458 crore. The biggest of these plots was secured by Adamant Construction while Noida based Nirala World has emerged as the highest bidder for two plots. The auction comes days after the authority auctioned three plots for residential development for Rs 521 crore against the reserve price of Rs 262 crore. Eldeco Infrastructure and Properties Ltd, while Prasu Infrabuild and Divyansh Infraheight jointly and Purvanchal Projects were the winning bidder for the third and smallest of the three plots. “We have recently acquired a land parcel in Greater Noida West through an auction process. On the purchased land, we intend to build a commercial project (a mall or a high-street), with a construction budget of roughly Rs 250–300 crore,” said Suresh Garg CMD of Nirala World. It has acquired a land parcel of 10,600 sq meter for Rs 180 crore including GST, lease rent and stamp duty. The company is the successful bidder for another commercial plot of a similar size. Nirala World had recently launched a luxury residential project situated in Greater Noida West. Nirala World has already developed a 25-acre project comprising 4050 homes out of which possession of 3600 units has been given to the buyer and 450 units to be delivered soon. Earlier, Mumbai-based Godrej Properties and Bengaluru-based Sobha acquired three land parcels in an e-auction conducted by GNIDA. The authority had come up with an auction of five land parcels for Rs 738 crore and managed to sell them for a total of Rs 1,500 crore. Source : Economic Times INDIA

Gurugram’s Paradiso Tower A Deemed Unsafe for Living

10/18/2024 12:31:00 PM

Gurgaon: The Central Building Research Institute (CBRI) has deemed Tower A of Chintels Paradiso unfit for living, marking the eighth tower in the nine-building complex to be declared unsafe. The recent audit revealed significant structural deterioration in Tower A, primarily because of severe corrosion caused by high chloride content and poor-quality concrete — similar to issues found in the other towers. Tower A comprises 64 flats, 60 of which are occupied. Structural audits by IIT-Delhi earlier had already declared six other towers — D, E, F, G, H, and J — unsafe, with the demolition of these buildings expected to start next month. IIT had then classified Towers A, B, and C as safe, but warned of potential deterioration in the future. In response, Chintels India initiated a new round of audits through CBRI to further assess the condition of all towers. The CBRI report highlighted that almost all structural elements in Tower A were compromised because of corrosion and poor concrete quality, making the structure non-compliant with Indian safety standards, especially in seismic zone IV. A spokesperson for the developer said, "Once Tower A is vacated, we will offer compensation to flat owners or allow them to opt for reconstruction. The audit report for Tower B, the last remaining tower, is expected in 10 days." Source : Times of India INDIA

SC Confirms Demolition of 41 Illegal Buildings in Mumbai’s Agrawal Nagari

10/18/2024 12:29:00 PM

Mumbai: The Supreme Court recently dismissed a Special Leave Petition filed by families residing in 41 illegal buildings in Agrawal Nagari, Nalasopara, allowing the Vasai Virar Municipal Corporation (VVMC) to proceed with the demolition of the structures. The occupants, who were given a 24-hour notice by the VVMC on July 2, had sought relief from the Bombay High Court, which extended the eviction deadline to Oct 30 but refused to halt the demolition. The apex court, in its ruling, noted that the buildings were constructed without the necessary permissions from the authorities and that a site earmarked for a public project cannot be occupied by unauthorized structures. Justices Hrishikesh Roy and SVN Bhatti presided over the case. The writ petition that led to this action was filed by three elderly brothers, Mohanlal Patel, Ramanlal, and Dhirajlal, who reside in Canada and New Zealand. They had entrusted their youngest brother Ramdas, a Vasai resident, with power of attorney, which he further granted to his son Piyush and Ajay Sharma. The illegal constructions span across 60 acres, including 30 acres of private plots allegedly encroached upon by Sitaram Gupta, a former Bahujan Vikas Aghadi corporator, who was arrested by the Economic Offences Wing in Sept last year. The petitioners claim ownership of the property since 1977, which is classified as wetlands. However, in the 2010 development plan, their entire land was reserved for a dumping ground and sewage treatment plant without prior notice or compensation. Despite a 2013-14 demolition of 200 structures following a writ petition by Harit Vasai Saurakshan Smirti, illegal chawls have continued to be constructed on the site. The occupants, who belong to the labour class and have been living in the area for the past 15 years, claim to have purchased their homes through cash payments at regular intervals. They are now demanding alternate accommodation from the govt. The SC observed that while the occupants are at liberty to approach the govt for rehabilitation, the authorities can proceed with the demolition. The civic body has sought police protection to carry out the demolitions and has written to the electricity department to disconnect power connections, with water supply also set to be halted soon. Source : Times of India INDIA

ED seizes assets worth Rs 42 crore linked to ex-IAS officer, others in fraud case

10/17/2024 12:14:00 PM

Lucknow: The Enforcement Directorate (ED) Lucknow unit grilled Mohinder Singh, a former IAS officer and the former CEO of Noida Authority, at its Lucknow office on Wednesday. The former officer, along with promoters and directors of Hacienda Projects Private Limited (HPPL), is accused of a scam worth Rs 636 crore. Sources in the ED said that the former IAS officer was grilled for eight hours by the ED sleuths. Sources mentioned that verification of documents was done, and some were left to be completed. He will be called again as and when the need arises. Last month, the ED conducted raids at 12 locations in Meerut, Noida, Goa, Delhi, and Chandigarh. It also included promoters and directors of the private company Hacienda Projects Private Limited (HPPL). The ED started a probe in the case based on the order of Allahabad High Court on March 1, 2024. A consortium of companies was allotted land in Sector 107 under a scheme for group housing floated by Noida Authority in 2010-11. Hacienda Projects Private Limited (HPPL) was made a special purpose company for building and developing a residential project. However, the promoters, without investing any amount, first got huge tracts of prime land allotted, launched a project, and collected Rs 636 crore from the home buyers. Out of this, they siphoned off almost Rs 190 crore, then sold a portion of the land to a third company, pocketed and siphoned the entire sale proceeds (Rs 236 crore), and paid a pittance to Noida Authority towards the cost of land/premium for land and lease rent, which they were supposed to pay. They defrauded the home buyers, Noida Authority, banks, and other creditors. Source : Economic Times INDIA

Delhi's Civic Body Fines 30 Government Construction Sites for Dust Violations

10/17/2024 12:12:00 PM

The New Delhi Municipal Council (NDMC) has identified and penalised several government-related construction projects for failing to comply with dust control measures. This action comes as part of efforts to address escalating pollution levels, especially during the winter months when air quality deteriorates notably. Recent inspections revealed that several government construction sites, including the General Pool Residential Accommodation (GPRA) projects in Sarojini Nagar, Netaji Nagar, and Nauroji Nagar, were not adhering to dust control guidelines. These violations are particularly concerning given the scale and government affiliation of these projects. Additionally, construction activities at Lady Hardinge Hospital and Karnataka Bhawan complexes, both situated in Delhi's high-profile areas, were also found guilty of similar infractions. In total, NDMC identified 30 violators, imposing a fine of Rs 50,000 per infraction. The cumulative penalties have reached Rs 15 lakh, underscoring the council's commitment to enforcing environmental regulations. The fines are part of a broader initiative to promote sustainable construction practices and minimise airborne dust, which significantly contributes to Delhi's notorious air pollution. These measures align with directives from the Commission for Air Quality Management (CAQM), which has mandated the implementation of GRAP-1 (Graded Response Action Plan) measures starting October 15th in the Delhi NCR region. The GRAP-1 measures are specifically designed to mitigate winter pollution, a period when air quality in Delhi deteriorates to hazardous levels due to a confluence of factors, including construction dust, vehicular emissions, and industrial activities. The crackdown on these violations signals a strong commitment from local authorities to improving air quality and highlights the need for all stakeholders to adhere diligently to environmental regulations. As Delhi continues to battle pollution, such stringent actions are essential to safeguard public health and ensure compliance with environmental standards. Source : Economic Times INDIA

KBC Global Ltd Aims to Secure Rs 100 Crore Through Equity Issuance

10/16/2024 12:21:00 PM

KBC Global Ltd (Previously known as Karda Construction Ltd) BSE - 541161, in the business of construction and real estate development is planning to raise upto Rs. 100 crore by way of equity issue. Meeting of Board of directors of the company is scheduled to be held on October 16, 2024 to consider and approve the fund raising proposal. Company is exploring preferential allotment, warrants and other permissible mode or combination thereof in one or more tranches as decided in the board meeting subject to the approval of shareholders and regulatory authorities. The proceeds of the equity issue will be utilize for the repayment of debt. Recently, KBC International Ltd, Ghana drop-down subsidiary of KBC Infrastructure Ltd, UK (Wholly owned subsidiary of KBC Global) has entered to Memorandum of Understanding with Liberia Special Economic Zone Authority for construction and development of residential building complexes, low cost housing and Commercial space in SEZ with estimated cost of USD 12.5 million USD. The project is expected to commence from Q2 2025 and is expected to complete within three calendar years. Liberia Special Economic Zone Authority is entity established by Government of Liberia under Special Economic Zone Act 2017. This is a second prestigious international order received by KBC Global. In June 2024, KBC Global Ltd, through its subsidiary Karda International Infrastructure Ltd, has secured a $20 million civil engineering subcontract in the soft infrastructure segment from CRJE (East Africa) Ltd. CRJE, part of the China Railway Construction Group, has a strong legacy of building railways and five-star hotels across Africa. This contract marks KBC Global's entry into Africa's infrastructure development, positioning the company as a key player in the region's growth. Company has recently commenced a new project in Deolali, Nashik. The project is located at Survey No. 87/2/2B, Plot No. 4, on Jai Bhavani Road has a proposed area of 31,998 sq ft with six commercial and twenty-two residential units on the plot area of 761.32 sq meter. Established in 2007, the company specializes in developing and selling residential and residential-cum-office projects in Nashik, India. Key projects include Hari Gokuldham, Hari Nakshtra-II Eastext Township, and more. The company focuses on residential, commercial, and contractual projects and has announced strategic expansion plans domestically and internationally. On 21st September 2024, company has successfully fulfilled its payment obligation to Capri Global Capital Ltd and has fully regularized the default on September 19, 2024. Furthermore the company also entered into a favourable Memorandum of Understanding (MOU) with Capri Global Capital Limited, securing a waiver of non-financial penal interest. As of today, the outstanding balance with Capri Global Capital Ltd stands at Rs. 13.50 crore. This agreement underscores the strong relationship and trust between both parties, positioning the company for continued growth and stability. This will add more pace to construction activities of projects Hari Vasant, Hari Aakruti Phase II of the company. During the month of September, 2024 the company has successfully handed over possession of 13 units from its projects - Hari Kunj Mayflower - 5, Hari Krishna Phase IV - 4, Hari Vishwa - 1 and Hari Sanskruti Phase II 4. Since April 2024, the company has handed over possession of total 135+ residential and commercial units in Nashik, Maharashtra. This includes 91 units from the Hari Kunj Mayflower project (MAHARERA Reg no: P51600020249) and 28 units from the Hari Krishna Phase IV project, with the rest from other ongoing projects. The Board approved the appointment of Muthusubramanian Hariharan as Executive Director and CEO, effective July 09, 2024. He will serve until the next general meeting. Mr. Hariharan will lead global business development, execute the company's strategic plan, and oversee its vision, mission, and objectives. Source : Economic Times INDIA

Godrej Project Directed to Refund Rs 4 Crore to Buyers

10/16/2024 12:20:00 PM

New Delhi/Gurgaon: Country's apex consumer commission, NCDRC, has ordered realty major Godrej Projects to refund over Rs 4 crore to homebuyers in five separate cases for its failure to deliver its promises, which included a 24-metre-wide road and other essential amenities even seven years after making bookings. The homebuyers had booked flats in the ‘Godrej Summit' project in Sector 104 in Gurgaon. The National Consumer Disputes Redressal Commission (NCDRC) also directed the builder to pay 9% interest on the refund amount. As per the orders, the NCDRC panel, led by presiding member Ram Surat Ram Maurya and member Bharat Kumar Pandya, held the builder accountable for "failing to deliver on its promises", particularly the construction of a 24-metre-wide road and other essential amenities that the builder had promised. The bench observed that even after the offer of possession, seven years have expired, but the promised road has not been constructed on the spot. It said expensive flats were sold representing that the project is connected with Dwarka Expressway through the wide road. Separate entry and exit points were also promised for each of the three parcels — A, B and C — in the society. "The homebuyers agreed for sale price on these prime features. Now the OP (builder) has constructed an alternative entrance and exit gate to parcel A on 10.06 meters wide revenue road, which too is under encroachments. In order to reach the flats in parcel B&C, the buyers will have to enter through the gate of parcel A and travel across the narrow road. Thus there is shortcoming in fulfilling the obligations as per brochure, which amounts to deficiency in services. The decision of the homebuyer seeking refund doesn't amount to breach of contract on part of homebuyer," the panel said in its order. Despite the builder's claims that it was actively working on the road's construction and even filed a civil writ petition in Punjab and Haryana high court to push for the work completion, the NCDRC found these efforts insufficient. The commission ruled that Godrej could not shirk its responsibility by shifting the blame to govt authorities, saying that "it was the builder's duty to ensure the provision of the road as promised". A spokesperson for the developer said, "This refund has been ordered for non-construction of a 24-metre road, even though NCDRC in a previous order, for the same project, observed that the developer is not liable to construct the road falling outside the project. That matter is sub-judice. We are confident of our merits in the matter and are seeking advice for filing an appeal against the orders." Advocate Aditya Parolia, who represented the homebuyers, said the Commission noted that the builder had assured buyers between 2012 and 2014 that the housing project would have a direct access road connecting to the Dwarka Expressway via a 24-metre-wide link. "We can see that though the units were ready on time, amenities promised and approach road to the project envisaged could not be provided even after a considerable time. In such a situation now the law is clear that an allottee can invoke his rights to claim refund of money with penal interest from such builders," he added. Source : Times of India INDIA

Haryana RERA : Over 207 Arrest Warrants Issued Against Builders For Compliance Issues

10/15/2024 12:38:00 PM

Gurgaon: Haryana Real Estate Regulatory Authority (HRera) has this year issued 207 arrest warrants against 20 city-based developers for failing to comply with its orders to provide compensation due to delays in handover of flats to homebuyers. H-Rera officials said police had, however, not acted on the orders, prompting the regulator to move the Punjab and Haryana high court for its intervention. H-Rera has initiated contempt of court proceedings in three such cases against police for their inaction. Rajender Kumar, adjudicating officer of H-Rera said the arrest warrants were issued between Feb and Sept after developers repeatedly ignored directions. "The lack of police action has only worsened the plight of homebuyers," Kumar said. "We have referred the matter to the high court and police have yet not taken action. Thousands of homebuyers are suffering as a result." Asked about this, DCP headquarters Arpit Jain told TOI, "So far, we have not received any such notice from the court. If we receive an order, we will proceed as per the directions of the honourable court." Ritika Singh, a homebuyer who has been waiting for her flat for more than five years, said she was deeply disappointed in the redress system, which is failing homebuyers despite the govt appointing a regulator. "I invested my entire savings in this flat, but the builder has delayed possession repeatedly. H-Rera ordered compensation, but I haven't received a single rupee," she said. Ajay Mehra, another homebuyer said he was supposed to move into his apartment in 2018. "It's 2024 and I'm still waiting. I've lost faith in the process. We've done everything needed, but the developers keep getting away with it," he said. "We expect the law to be on our side, but when a govt authority takes action and it's still enough, what's the point?" asked Ankit Sharma, another homebuyer affected by the delays. H-Rera officials said they hoped moving the high court would bring urgency and make developers fall in line. Source : Times of India INDIA

Delhi Environment Minister Imposes Fine on Construction Company For Violation Anti-Dust Regulations

10/15/2024 12:37:00 PM

New Delhi: Delhi environment minister Gopal Rai conducted a surprise inspection of a sports complex construction site in Pitampura and directed a fine of Rs 50,000 on the private construction company that is involved with the project. The inspection was conducted under the govt's ongoing anti-dust campaign. "It is necessary to implement the 14 rules of dust control at construction sites. Action will be taken if these are violated. Officials have been instructed to regularly inspect construction sites," Rai said. Delhi govt's statement had said that the Delhi Pollution Control Committee will also issue a notice seeking an explanation of why the norms were flouted, and a financial penalty will be imposed on a daily basis for not giving a satisfactory reply to the notice. Rai said that as part of the anti-dust campaign, 523 teams from 13 departments have been deployed across the city for monitoring. He added that all construction sites larger than 500 square metres must now register on the construction and demolition (C&D) portal. A statement from Delhi govt further pointed out that a fine of Rs 1 lakh will be imposed on construction projects with an area of less than 20,000 square metres, and Rs 2 lakh on projects with an area exceeding 20,000 square metres, for not registering on the portal. A penalty of Rs 7,500 per day will be imposed for failing to install anti-smog guns at construction sites. "For not implementing dust mitigation measures, construction projects with an area of less than 500 square metres will be fined Rs 7,500 per day, while those with an area exceeding 500 square metres will face a fine of Rs 15,000 per day. Vehicles transporting construction materials must be properly covered. "A fine of Rs 7,500 will be imposed for any violation of this rule," read a Delhi govt statement. Delhi BJP president Virendra Sachdeva said the lieutenant governor should call a high-level, all-party meeting on air and water pollution in the city. "Two major festivals, Diwali and Chhath, are approaching in the next three weeks, but govt led by Atishi Marlena remains indifferent. Therefore, intervention from the LG is now essential," Sachdeva said. Source : Economic Times INDIA

Delhi Court Upholds Lookout Circular for ATS Infrastructure Promoter

10/15/2024 12:32:00 PM

A Delhi court has refused to cancel a lookout circular (LOC) against real estate company ATS Infrastructure Limited's promotor Geetamber Anand and his wife Poonam Anand in connection with multiple FIRs lodged against the builder. The FIRs include those lodged by the Economic Offence Wing (EOW) of Delhi Police for allegedly defrauding homebuyers, and another a money laundering case filed by the Enforcement Directorate. Judicial Magistrate Yashdeep Chahal, in an order passed on September 13, said the accused had appeared to join the investigation as and when required, however, "the LOC appeared to be a safeguard to ensure that judicial process is not frustrated in any manner". "Even if the applicants are directed to obtain prior permission of the court before travelling abroad, the accused could always travel without obtaining any such permission and there would be no way for the court to enforce a condition of that nature," he said. "So far as the personal liberty of the applicant is concerned, suffice is to say that reasonable restrictions could always be imposed on right to life and personal liberty in accordance with the procedure prescribed by law," the judge said. "In light of the above discussion, I do not see sufficient reasons to direct the recall or cancellation of the LOC", he added. The judge, however, said it was not proper for the authorities concerned to stop an accused person while travelling abroad without conveying the reasons for stalling the travel. It is a basic right of the accused to know the reasons for stalling his travel and the same must be conveyed, he noted. Advocate Sanjay Abbot represented the homebuyer complainants before the court. Source : Economic Times INDIA

Over 300 Flats Registered in Noida During Navratri Festivites

10/14/2024 12:12:00 PM

Noida: Over the past nine days of Navratri, the stamp and registration department registered 303 flats and collected Rs 103 crore stamp duty. The number of registrations is nearly three times of what is done on usual days. Assistant inspector general registration (I) BS Verma said, "Usually, we register 10-20 flats daily. However, we registered three times more than that during Navratri as people see it as an auspicious time for significant purchases. On some days, we registered 75-85 flats in a day." Apart from flats, 1,804 other properties were registered between Oct 3 and 11, totaling 2,107 property registrations. The stamps and registration department collected Rs 3,585 crore in 2023-24, up from Rs 3,018 crore in 2022-23. The department aims to collect Rs 4,880 crore for the current financial year. Meanwhile, the Noida Authority plans to refer developers of six residential projects to the economic offences wing (EOW) because they owe Rs 1,035 crore in land dues. These developers did not opt for the UP govt's rehabilitation package for stalled projects. Of 57 projects that defaulted on land dues, 29 accepted this package, which offers a two-year zero-period relief from April 2020 to March 2022, exempting developers from penalties and interest during the lockdown. Besides this, 17 developers made partial payments, while five gave consent but did not make payments. Six others did not give their consent. Under the rehabilitation and resettlement scheme, nearly 1,500 flats have been registered in Noida so far. In Dec last year, UP govt came out with a rehabilitation package to expedite flat registries in the state. The guidelines adopted several recommendations of the Amitabh Kant committee that drew up a roadmap for the revival of 2.4 lakh stalled or stressed housing units. The zero period waiver was on interest accrued during two years of the Covid pandemic. According to the rules, builders opting for the package were supposed to pay 25% of their recalculated dues within 60 days. Those who cleared the first tranche of dues were likely to be considered for another waiver on interest calculated during an NGT restriction on construction around Okhla Bird Sanctuary. Source : Times of India INDIA

SC Tax Ruling on ITC May Amplify Commerical Realty Investment

10/14/2024 12:07:00 PM

The Supreme Court's recent ruling allowing claiming of input tax credit (ITC) for construction of any property meant for the supply of taxable services such as renting has brought in clarity in terms of tax liabilities and is expected to drive further investments into commercial realty, said industry officials and analysts. Reduction in tax burdens may serve as a catalyst, encouraging new investments and revitalising interest from developers and institutional investors who may have stayed away due to higher costs. Offices, malls, and hospitality ventures focused on building and leasing properties are likely to gain the most from the top court ruling as these areas usually require substantial upfront investments and long-term financial commitments. "The SC acknowledging our stance on ITC marks a positive step for the commercial property sector, which is experiencing a resurgence in absorption and rental levels fuelled by the 'back to office' trend across industries such as IT, ITeS, and e-commerce, revitalising leasing velocity. This ruling is a boon for the realty industry helping attract new investment," said Niranjan Hiranandani, chairman of industry body Naredco. He said new commercial space supply has started catching up aided by enhanced connectivity and growth of the hub-and-spoke business model in the context of decentralisation, and the ruling will give more confidence to institutional investors in this segment. This has significant implications for business models that rely on leasing real estate. The most immediate effect is the financial relief for developers and investors. "Real estate firms that develop commercial, including co-living projects, specifically for leasing purposes will now be able to claim ITC, reducing their overall project costs. This is a major relief for capital-intensive businesses like these where the income will start after the completion, and hence it will provide a boost to investment," said Amit Bhagat, CEO of ASK Property Fund. The Supreme Court has held that curbs on claiming ITC for construction-related expenses should not apply when the end-use of the property is a taxable activity. In essence, it bridges the gap between the tax payable on rental income and ITC available on construction costs, allowing developers to offset their tax liabilities. With clearer tax benefits, developers are likely to be incentivised to expand their portfolios of malls, office complexes, and retail spaces. This could also boost supply of rental properties, providing more options to businesses and tenants, industry experts said. The reduction in tax liability for developers could also translate into more competitive rental rates. As developers pass on the benefits of reduced costs to tenants, the commercial real estate market could see more affordable rents, especially in large metro cities where rent for office spaces and retail outlets is typically high. The ruling brings much-needed clarity to an area of GST law that was previously uncertain. With the legal framework now better defined, developers and real estate companies can plan their tax compliance strategies with greater confidence. The decision also sets a precedent that could influence future litigation on similar issues, fostering a more consistent tax environment in the sector. Source : Economic Times INDIA

ED Raids on Vatika Limited and Identifies Rs 200 Crore

10/11/2024 12:54:00 PM

NEW DELHI: The Enforcement Directorate (ED) has identified properties worth more than Rs 200 crore during raids conducted at 15 premises in Vatika Limited and others under the provisions of the Prevention of Money Laundering Act (PMLA), the agency said on Thursday. The agency had carried out the searches on October 7 in the two cities in relation to a case wherein more than four hundred investors of various commercial projects did not receive assured returns as incorporated in the Builder Buyer Agents (BBAs), nor did the company hand over the commercial units to the buyers and investors. During the search operations, the ED said, various incriminating documents and records related to investments of the buyers, loans borrowed by the group companies from the financial institutions and digital devices such as pen drives, hard drive, laptops and mobile phones have been seized. ED initiated investigation on the basis of multiple First Information Reports registered during the 2021 by Economic Offence Wing, Delhi and Haryana Police under various sections of Indian Penal Code, 1860 against Vatika Limited and promoters Anil Bhalla, Gautam Bhalla and others related to offences of Criminal conspiracy, cheating and dishonestly inducing delivery of property. ED said its investigation revealed that the Vatika Limited is involved in "alluring the investors for making payments for future projects, against high value of returns like assured returns till completion and lease-rent return after completion of projects." "However, in mid-way, company stopped paying the assured return and didn't hand over the respective units in various projects in Faridabad and Gurugram thereby committed offences of criminal conspiracy, cheating and dishonestly inducing delivery of property," said the ED. Further, the agency said, it is revealed that Vatika Group of companies had availed loans of more than Rs 5000 crore out of which approximately Rs 1200 crore was waived off by the Indiabulls company in a settlement with Vatika group and its promoters. "It is also revealed during the investigation that the company has not followed the due procedures such as non-renewal of the licences from DTCP from time to time, lapses with respect to completion of the said projects within timeline," said the federal agency. So far, the agency also said, the investigation findings reveal the involvement of approximately Rs 250 crore generated as Proceeds of Crime. Source : Economic Times INDIA

Oberio Realty Receives Green Light for Rs 6000 Crore Fund Raising

10/11/2024 12:53:00 PM

The Board of Oberoi Realty at its meeting held on 10 October 2024 has approved the proposal for enabling raising of funds for an aggregate amount not exceeding Rs. 6,000 crore by way of issuance of equity shares, eligible securities, other securities or instruments or any combination of securities, in one or more tranche or tranches, by way of private placement including a qualified institutions placement. In August 2024, National Company Law Tribunal-Mumbai bench approved the resolution plan submitted by the company in relation to the corporate insolvency resolution process (CIRP) of Nirmal Lifestyle Realty (NLRPL). NLRPL holds development rights in respect of land admeasuring approximately 20,262.40 sq metres situated at L.B.S. Road, Mulund West, Mumbai, which land is contiguous to the lands owned by the company where the residential project ‘Eternia’ has been developed by the company. The resolution plan provides for payment on the effective date of an amount of Rs 273 crore to various creditors in full and final settlement. It will also subscribe to 100% equity share capital of NLRPL for Rs one lakh, making it a wholly owned subsidiary of the company. Source : Economic Times INDIA

Noida : 1.9 Lakh Applications for 361 Residential Plots Near Airport

10/10/2024 1:00:00 PM

Noida: Nearly 1.9 lakh applicants will be part of a draw of lots for allotment of 361 residential plots offered by the Yamuna Expressway Industrial Development Authority (YEIDA) near Noida International Airport. The draw of lots will be held on Thursday at the India Expo Centre located in Greater Noida. Interest in plots near the airport and along the Yamuna Expressway has increasingly gone up after the foundation laying ceremony of the airport was conducted in Nov 2021. On an average, 518 applicants have applied for each residential plot. Launched in July this year, YEIDA's latest scheme includes residential plots in sectors 16, 18, 20 and 22D. The plot sizes range from 120sqm to 4,000sqm, and are priced at Rs 29,500 per sqm. A YEIDA scheme introduced last year for 1,184 plots saw nearly 1 lakh applicants. In 2022, demand saw a surge for the first time, with the authority receiving 64,000 applicants for 477 plots. Response to schemes was lukewarm before late 2021, primarily due to considerable distance from Noida and Greater Noida. "The scheme has generated substantial interest among applicants primarily due to its strategic proximity to the upcoming Noida International Airport, which is poised to significantly enhance the region's real estate market. In addition to the airport, several major projects, including Film City, Semiconductor Park, Japanese City, Korean City, Software Park, and Medical Device Park are in the works," Avneesh Sood, director of Eros Group, said on Wednesday. Sood added that this interest in residential plots was also because of "competitive pricing". "Along with that, infrastructure and connectivity projects planned in the region are likely to have fueled interest among homebuyers and investors in the region," he added. One of the applicants told TOI that pricing was a key reason to go for the scheme. "It is hard to find such low prices in NCR. Second, the presence of Noida airport and other nearby projects along the Yamuna Expressway have made it an attractive investment. If allotted, it will be an asset for my family," he said. According to official data, 202,235 applications were received for the scheme. Of these, 187,000 chose the one-time payment option and 14,374 opted for installments. The highest number of applications received was for 120sqm plots (67,197), followed by 300sqm (59,163) and 162sqm (44,181). Another 9,777 applicants opted for 500sqm plots, 3,658 for 1,000sqm, 2,512 for 200sqm, and 1,089 for 4,000sqm. YEIDA officials said on Wednesday that given the overwhelming response, applicants who selected installments for payments would not be considered as this preference was specified in the scheme brochure. Among applicants, 264 had submitted multiple applications and 20 were rejected after they surrendered their applications. On Thursday, 1% of the applicants (around 1,900) will be present at the Expo Centre, where the draw of lots will take place. The remaining can watch the live telecast of the draw on social media. The draw will be carried out under the supervision of three retired judges of the high court. Unsuccessful applicants will get their registration amount back within 72 hours. Source : Times of India INDIA

Ghaziabad: House Tax Proposal Not Approved to Match Circle Rates

10/10/2024 12:59:00 PM

Ghaziabad: In a meeting on Wednesday, GMC board rejected a proposal to align house tax with the DM circle rate. This decision came amidst ongoing tensions between mayor Sunita Dayal and municipal commissioner Vikramaditya Singh Malik. State cabinet minister and Sahibabad MLA Sunil Kumar Sharma attended the meeting with Muradnagar MLA Ajitpal Tyagi. "Despite councillors opposing the hike, GMC had been sending notices arbitrarily, demanding house tax akigned with the DM circle rate. The GMC board on Saturday, however, struck down the proposal. The consumers can breathe easy," said Mayor Sunita Dayal. The GMC had implemented a 10% house tax hike in Jan 2023, and aligning it with the DM circle rate added further financial pressure on residents, added Dayal. GMC officials argued that the tax hike would have increased the corporation's revenue, as Ghaziabad's house tax rate is the lowest among 17 municipalities in the state. Over Rs 185 crore has already been collected this financial year, including from the hiked rate. A GMC official said that the residents who have paid the increased tax will see adjustments next year. The hike had become a major contention between GMC officials and the mayor. The matter had also reached the CM's office. Additionally, the board approved bringing 13 new commercial activities under the trade licence fee ambit. "A committee will be formed to assess the fees, with a final decision expected in the next board meeting," the official added. The state govt has mandated municipalities to levy a trade licence fee on commercial activities. A total of 39 such commercial activities were brought under the purview, which included hotels, private clinics, pathology centres, etc. However, a few commercial activities such as gymnasiums, beauty parlours, spa centres, coaching institutes, jewellery showrooms, and branded apparel and sportswear outlets, were not included in the list. Fees proposed by GMC include Rs 2,000 for non-air-conditioned gyms, Rs 5,000 for air-conditioned gyms, and Rs 3,000 for spa centres. Coaching institutes will pay Rs 2,000, while jewellery showrooms and branded apparel outlets will be charged Rs 5,000 and Rs 4,000, respectively. Sports academies offering single sports will pay up to Rs 10,000 annually while those offering multiple sports will pay up to Rs 20,000. Source : Times of India INDIA

Sobha Fall 32% in sales bookings to Rs 1,178.5 crore in Q2 FY25

10/9/2024 12:26:00 PM

Realty firm Sobha Ltd has posted a 32 per cent decline in its sale bookings to Rs 1,178.5 crore during July-September quarter despite strong housing demand. In a regulatory filing on Monday, Bengaluru-based Sobha Ltd informed that its sale bookings stood at Rs 1,178.5 crore in the second quarter of this fiscal as against Rs 1,723.8 crore in the year-ago period. "In Q2-FY25, we sold new area of 0.93 million square feet with sales value of Rs 11.79 billion at an average price realization of Rs 12,674 per square feet," the company said. In terms of volume, the sale bookings fell to 9,29,907 square feet during July- September 2024 from 16,86,196 square feet in the year-ago period. During the first six months of this fiscal, Sobha Ltd sold properties worth Rs 3,052.2 crore as against Rs 3,188.5 crore in the corresponding period of the preceding year. The company sold 21,05,268 square feet in April-September period of this fiscal as against 30,80,313 square feet in the corresponding period of the preceding year. In the entire 2023-24 fiscal year, Sobha sold properties worth Rs 6,644.1 crore. Sobha is one of the leading real estate firms in the country. It has a significant presence in south India. It has projects in Delhi-NCR, Pune and Gujarat as well. Source : Economic Times INDIA

Noida authority to refer developers owing Rs 1,035 crore to EOW for investigation

10/9/2024 12:25:00 PM

Noida: Noida Authority will write to the police's Economic Offences Wing (EOW) against the developers of seven residential projects that cumulatively owe it Rs 1,035 crore in land dues and did not opt for UP govt's rehabilitation package for stalled projects. On Tuesday, the Authority send the developers a final notice seeking details on unsold flats and shops, and unutilised sections of the project land. The cases will be referred to EOW if the data is not shared soon, officials said. In Sept, the Authority tasked EOW to investigate the defaulting developers, undertake financial audits and track if they had diverted funds received from homebuyers. The move coincided with CM Yogi Adityanath's directive to the three industrial authorities to enforce punitive measures — sealing vacant or unallocated flats and reclaiming unconstructed or vacant areas — outlined in the rehabilitation package against non-compliant developers. Of the 57 projects that had defaulted on land dues, 29 have accepted the rehabilitation package, which offers a two-year zero-period relief — from April 2020 to March 2022 — exempting developers from paying interest and penalties for the period when work was stalled due to the Covid-related lockdown. Twenty-nine realtors, who are yet to take up the package, cumulatively owe Noida around Rs 6,900 crore in land dues and have over 12,700 flats. Of these 29, seven projects — IVR Prime (Sector 118) which owes the Authority Rs 659.9 crore, Futech Shelters (Sector 75) Rs 114.84 crore, Gardenia India Ltd (Sector 75) Rs 111.84, TGB Infrastructure (Sector 50) Rs 55.27 crore, MPG Realty Pvt Ltd (Sector 137) Rs 38.92 crore, AGC Realty Pvt Ltd (Sector 121) Rs 20.80 crore and Manisha KB Projects (Sector 61) Rs 38 lakh — were issued final notices as the developers did not give consent to the rehabilitation package despite "repeated efforts", Noida Authority CEO Lokesh M told TOI. Together, the projects have 3,816 flats, all are pending registry. Officials told TOI that vacant properties associated with non-compliant builders are likely to be sealed. On Tuesday, the Authority sealed 31 unsold flats at Sikka Infrastructure Pvt Ltd in Sector 143 B over Rs 208.05 crore dues. The developer had opted for the govt's relief package but failed to deposit 25% of the outstanding amount upfront despite notices. Officials said the Authority will soon crack down on builders who have deposited only a part of the 25% of their total dues so far. The Authority will send them final notices soon and may even cancel their allotments and lease documents in case of non-compliance. Pratik Realtors India Pvt Ltd, Antriksh Developers and Promoters Pvt Ltd, Omaxe Buildhome Pvt Ltd, Perfect Propbuild Pvt Ltd, Imperial Housing Ventures, and Assotech Contracts India Ltd are among the developers that are yet to clear 25% of their total dues after opting for the relief package. Additionally, notice boards would be placed at the gates of builders who paid the initial 25% of their dues, instructing them to expedite the remaining flat registrations. Source : Times of India INDIA

Signature Global registers pre-sales of Rs 27.8 billion in Q2 FY25

10/9/2024 12:25:00 PM

NEW DELHI: Signature Global (India) has reported a 184% increase in pre-sales during the second quarter of financial year 2024-24 amounting to Rs 27.8 billion. The company registered pre-sales of Rs 59.0 billion in H1 FY25, a 217% year-on-year growth. With this, it claims to have already achieved 59% of its sales guidance of Rs 100 billion for FY25. Pradeep Kumar Aggarwal, chairman and whole-time director of the company said, "Our focus on premium and mid-housing projects, strategic land acquisitions, and the introduction of new customer-centric initiatives will ensure we stay ahead of the curve." The company’s collections in H1 FY25 grew by 60% to Rs 21.3 billion. Sales realization for H1 FY25 increased to Rs 13,379 per sq ft compared to Rs 11,762 per sq ft in FY24. Net debt stood at Rs 10.2 billion at the end of H1 FY25 in comparison to Rs 11.6 billion as at the end of FY24. Source : Economic Times INDIA

Noida : Amrapali Dream Valley Flats Handed Over After 10 year

10/8/2024 1:06:00 PM

NOIDA: After waiting for years, even a decade, 51 buyers of Amrapali Dream Valley Enchante in Greater Noida West finally received the keys to their apartments on Sunday. The National Buildings Construction Corporation (NBCC) began the handover process, four years after it was given charge of completing the stalled project. The remaining 833 homebuyers of this Amrapali project are likely to be handed over possession of their flats soon. Shailendra Bhadauri (56), a single parent, had booked his 3bhk flat in 2013 for Rs 38 lakh. He took a loan of Rs 12 lakh to pay for it and currently gives Rs 16,000 as monthly installment to the bank. Employed in the public sector, Bhadauri fortunately has a govt accommodation in Delhi but would need to vacate it when he retires in three years. On Monday, the 56-year-old said he was "overwhelmed" that he would finally get the flat he had invested in. "Purchasing this flat took nearly all of my life savings and I still continue to pay loan installments for it. As an Amrapali buyer, I also found it difficult to get a loan because banks demanded an official letter from a court or NBCC. From protests at Jantar Mantar to approaching the Supreme Court, our path was far from easy. The emotional and financial toll of this struggle has left an indelible mark on our lives. But at least now, there's a glimmer of hope," Bhadauri said. The Amrapali Dream Valley project in Greater Noida West was initiated in 2010, and it was supposed to be developed in three phases. Construction for Dream Valley Enchante, the third phase, began in 2014, with a promise by the developer to hand over flats in 36 months. But the developer had just excavated the site when construction was halted due to bankruptcy. The Supreme Court in 2019 assigned NBCC as the project management consultant for cash-strapped Amrapali projects. The company's responsibility was to finish construction of the developer's remaining 38,159 units and common facilities within the societies. NBCC in 2020 gave the tender for construction of Dream Valley Enchante to a private firm, but this company was blacklisted in 2022 due to construction delays and non-performance. The same year, NBCC roped in another firm, Gautam Builders, to complete work at the society. Of the five towers at the society, two towers – H5 and H6 – with 364 flats are complete, and the remaining three towers are in final stages of completion. All flats are 2BHKs. Anuj Maurya, who works in the financial sector, was another buyer. He too dealt with the financial burden of paying back a loan of Rs 15 lakh, and has been living on rent in Ghaziabad's Vaishali all these years. Just months before, he completed all payments for his Rs 33-lakh flat. "I had booked my flat in 2015, and by 2018, I thought I would never be able to get it. It was after I saw the determination of other homebuyers that my perspective shifted. I joined their protests and their support and camaraderie helped me persevere through these challenging times. Still, this wasn't an easy journey. The financial burden and lack of stability took their toll on me," Maurya said. Dipankar Kumar, among those spearheading the homebuyers' cause, said the "long battle is now bearing fruits". Kumar is one of the Dream Valley Enchante homebuyers who is yet to get possession of his flat. NBCC is currently handling 14 unfinished Amrapali projects in Noida. These include Sapphire 2, Crystal Homes, Golf Homes, Centurion Park 2, and the other two phases of Dream Valley. In its 2019 order, the apex court held Amrapali Group and its directors accountable for misappropriating homebuyers' funds for their own benefit and cancelled its licence under the RERA Act. Source : Times of India INDIA

HCFs Propose Higher Guarantee Cover for Home Loans Up to Rs 25Lakh

10/8/2024 1:05:00 PM

Housing finance companies (HFCs) have proposed to the government to revamp the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) and increase guarantee cover for home loans up to ₹25 lakh from the current ₹5 lakh, two people aware of the development said. HFCs have sought a guarantee cover of up to 75% on a ₹25 lakh home loan. The current scheme, which has a budgetary allocation of ₹550 crores, provides up to 90% guarantee for home loans up to ₹2 lakhs, and up to 85% for loan amounts of ₹2-5 lakh. People said the revamped scheme will include a wider set of customers in the low-income housing category in 124 districts and it will be in addition to the Pradhan Mantri Awas Yojana (PMAY). "Chief executives of top housing finance companies have proposed to the government to revamp the scheme for low-income housing which presently has no takers and widen its scope to include home loans up to ₹25 lakh," the CEO of one of the largest affordable housing financing firms said asking not to be named. "The Union cabinet is considering the proposal, a note has been floated which has the contours of the proposed scheme.” As per the proposed scheme, the CRGFTLIH should be overhauled and replaced with a new scheme which will be widened to include home loans up to ₹25 lakh. While the proposal is to give a guarantee cover of 75%, the government could also be considering a 60% cover. A smaller loan will have a bigger guarantee. The recommendations by HFCs also talk about a 50-75 basis points guarantee cover fee that will be borne by mortgage lenders annually. CRGFTLIH was first introduced in 2012 but never took off due to the narrow scope of the scheme. "If the current scheme is widened to include a higher loan amount in housing-starved districts, it will give impetus to affordable housing companies to venture into these territories and take risks with new to credit customers," said the CEO of another housing finance company. Under the credit risk guarantee scheme, the trust gives a credit risk guarantee fund to lending institutions against their housing loans up to ₹5 lakh. The loans are granted to borrowers in the economically weaker section and lower income groups in urban areas without requiring any collateral security and a third-party guarantee. Source: Economic Time INDIA

CanFin Homes Fined by Consumer Court for Withholding Property Documents

10/7/2024 12:43:00 PM

Bengaluru: A housing finance company that failed to return the title deed and other documents pertaining to a site to a Bengalurean, though he had repaid the loan, was recently ordered by a consumer court to give him back all the papers and also pay him over Rs 1.3 lakh as compensation. C Sathyanathan, 58, a resident of MSR Nagar in Bengaluru, raised a loan of Rs 60 lakh from CanFin Homes Ltd, in Sept 2014 with an interest of 11.20% per annum to buy a site to build a house. The loan was for a tenure of 15 years and he had to pay an EMI of Rs 68,965. He quit his job and using all the money he got from the pension and savings, he cleared the loan in 2018, as he wanted to attend to other family commitments. He wrote to the company in Sept 2018, requesting that his property documents be returned to him but the company didn't respond. After waiting for a year in vain, Sathyanathan approached the IV Additional District Consumer Disputes Redressal Commission, Bengaluru with a complaint against CanFin Homes, seeking relief. He said that though he had cleared the loan, the company had not returned him the original documents of his property. The company alleged that the elderly man still had a balance amount of Rs 1.20 lakh as a penalty that needed to be paid. They further said that the borrower had violated the loan terms that required him to buy a site and construct a house on it, but he had only purchased the site. After examining all the documents provided by both sides, the commission recently declared that CanFin Homes was guilty of deficiency in the service provided and, had also failed to produce cogent documentary evidence to prove that the complainant still owed it money. The commission ordered the company to return the original title deed and other documents of the property, which he had deposited with it, while availing loan. It also said the company has to pay Sathyanathan Rs 100 per day from the day of the order till it returns all the documents. The court further directed the company to pay him a compensation of Rs 1 lakh for deficiency in service, Rs 20,000 for causing him mental agony, and Rs 10,000 as litigation costs. The company has been given 45 days to comply with the order. Source : Economic Times INDIA

Gurugram Homebuyers Protest Delayed Possession of Hero Home Flats

10/7/2024 12:40:00 PM

Gurgaon: Agitated homebuyers of Hero Homes in Sector 104 gathered at the project site on Sunday to protest the delayed possession of their flats. Armed with banners and slogans, the buyers expressed their frustration over the lack of communication from the developer, alleging a complete absence of updates on the project's completion timeline. Protesters held banners highlighting their grievances, with messages like ‘Rehne Ko Ghar Nahi... Baat Karne Ko Builder Nahi, Unfulfilled Promises, Unhappy Homeowner, and Deliver Amenities as Committed with Phase 1,' reflecting their mounting dissatisfaction. "Since Feb, there has been no clear update. We've tried reaching out multiple times, but all we get are vague promises with no specific timeline," said Mahesh Kumar, one of the protesting buyers. He added that despite the large gathering outside the premises, no official came forward to address their concerns, with the staff instead shutting the gates and deploying security personnel. The project consists of eight towers with approximately 1,100 flats. Many buyers have already paid up to 90% of the total cost of their homes. For those waiting for possession, the financial burden has been significant, as they are forced to pay both rent and EMIs. Some buyers have also raised concerns about the developer imposing penalties for delayed payments while remaining silent on compensation for the project's delays. "We have been waiting for our home for the last six years. The Sept deadline has passed, and despite the OC application in Feb, we still don't have our homes," said Manoj Khandelwal, another protester. Jatti Bhatia, another aggrieved buyer said that only minimal construction work had taken place in recent months. In response, a spokesperson for Hero Realty said that the company is committed to prioritising customer needs and that Phase 1 of the project, which includes four towers, has been completed. "We have submitted the necessary documents to obtain the Occupation Certificate, and the process of handing over possession will commence as soon as the OC is granted," the spokesperson said. Gurgaon: Agitated homebuyers of Hero Homes in Sector 104 gathered at the project site on Sunday to protest the delayed possession of their flats. Armed with banners and slogans, the buyers expressed their frustration over the lack of communication from the developer, alleging a complete absence of updates on the project's completion timeline. Protesters held banners highlighting their grievances, with messages like ‘Rehne Ko Ghar Nahi... Baat Karne Ko Builder Nahi, Unfulfilled Promises, Unhappy Homeowner, and Deliver Amenities as Committed with Phase 1,' reflecting their mounting dissatisfaction. "Since Feb, there has been no clear update. We've tried reaching out multiple times, but all we get are vague promises with no specific timeline," said Mahesh Kumar, one of the protesting buyers. He added that despite the large gathering outside the premises, no official came forward to address their concerns, with the staff instead shutting the gates and deploying security personnel. The project consists of eight towers with approximately 1,100 flats. Many buyers have already paid up to 90% of the total cost of their homes. For those waiting for possession, the financial burden has been significant, as they are forced to pay both rent and EMIs. Some buyers have also raised concerns about the developer imposing penalties for delayed payments while remaining silent on compensation for the project's delays. "We have been waiting for our home for the last six years. The Sept deadline has passed, and despite the OC application in Feb, we still don't have our homes," said Manoj Khandelwal, another protester. Jatti Bhatia, another aggrieved buyer said that only minimal construction work had taken place in recent months. In response, a spokesperson for Hero Realty said that the company is committed to prioritising customer needs and that Phase 1 of the project, which includes four towers, has been completed. "We have submitted the necessary documents to obtain the Occupation Certificate, and the process of handing over possession will commence as soon as the OC is granted," the spokesperson said. Source : Economic Times INDIA

Delhi court grants bail to senior official of Avantha Group in PMLA case

10/5/2024 12:37:00 PM

On Friday, the Rouse Avenue Court in Delhi granted bail to Madhav Acharya, a senior official of the Avantha Group, in a money laundering case. This case originated from a June 2021 FIR by the CBI against Gautam Thapar, CG Power and Industrial Solutions Ltd., and others. Senior Advocate Vikas Pahwa represented Acharya before Special Judge Sanjeev Agarwal, who granted bail under Section 45 of the Prevention of Money Laundering Act (PMLA). The judge noted that the evidence against Acharya was insufficient to meet the requirements of Section 45 of PMLA, indicating the case was not prima facie genuine. The court emphasized that further incarceration would violate Acharya’s right to a speedy trial and liberty under Article 21 of the Constitution. The case involves money laundering allegations linked to the Avantha Group and Gautam Thapar, amounting to approximately Rs. 1,929.88 crores and Rs. 6.33 crores. The Enforcement Directorate (ED) has provisionally attached properties worth Rs 678.48 crore belonging to Avantha Group entities in Haryana, Maharashtra, and Uttarakhand under PMLA. On August 19, 2019, CG Power and Industrial Solutions Limited disclosed findings to the Bombay Stock Exchange and the National Stock Exchange, potentially impacting the company’s financial position. Source : Economic Times INDIA

HC issues notice to Haryana government over revived S+4 floor policy

10/5/2024 12:35:00 PM

Gurgaon: Two weeks after the Haryana govt revoked its decision to pause implementation of the S+4 floor policy, Punjab and Haryana high court has issued a notice to it besides the department of town and country planning (DTCP) and the Haryana Shehri Vikas Pradhikaran, demanding responses on the issue following a petition which has challenged the revocation. The Public Interest Litigation (PIL) petition — challenging the construction of four-floor buildings with stilt parking in Gurgaon — has been submitted by a resident of Sushant Lok. Petitioner Sunil Kumar Singh argues that the state govt's decision to permit these constructions, despite a lack of adequate infrastructure, is detrimental to the city's overall well-being. The PIL was heard on Thursday by a bench led by Chief Justice Sheel Nagu, with senior advocate Meet Malhotra representing the petitioner. The bench has also agreed to hear a stay application filed as part of the petition, requesting an immediate halt to further four- floor construction approvals. The hearing for both the PIL and the stay application has been scheduled for Oct 23. In his petition, Singh has highlighted that the Haryana govt had initially set up an expert committee to review the feasibility of four-floor buildings in such cities as Gurgaon, which are already facing infrastructure challenges. The committee had recommended that before allowing additional floor constructions, an audit of the city's infrastructure, including drainage, waste management, roads and public utilities, should be conducted. Despite these recommendations, the state reintroduced the four-floor policy on July 2, 2024 without addressing these concerns. The petition argues that Gurgaon's infrastructure is already overwhelmed, with frequent issues like overflowing sewage, inadequate waste disposal, poor drainage and deteriorating roads. The city's electricity and water supply systems are strained and the situation will worsen if more multi-floor buildings are constructed without infrastructure upgrades, it says. The petitioner claims that such unchecked construction will eventually turn Gurgaon into an "urban slum," affecting the quality of life for all residents. In addition to the PIL, the Gurugram Citizens' Council and another petition have also raised concerns about the four-floor policy. These cases are expected to be heard alongside Singh's petition. The petitioner's legal counsel has urged the court to impose an immediate stay on the state's July 2 notification, which reopened the portal for approving four-floor buildings. According to the petition, DTCP has already begun approving new construction plans, ignoring the infrastructure concerns raised by both residents and the expert committee. Source : Economic Times INDIA

SC Grants ITC Claim on Construction Costs of Commercial Buildings

10/4/2024 12:14:00 PM

In a development that may encourage increased investment in commercial real estate, the Supreme Court on Thursday gave the industry relief by permitting input tax credit (ITC) on construction expenses for buildings meant to be leased. “If the construction of a building was essential for carrying out the activity of supplying services, such as renting or giving on lease or other transactions in respect of the building or a part thereof, which are covered by clauses (2) and (5) of Schedule II of the CGST (Central Goods and Services Tax) Act, the building could be held to be a plant,” said Justice Abhay S Oka and Justice Sanjay Karol. This ruling is expected to ease the financial strain of rent on tenants occupying commercial space. Real estate companies stand to gain because buildings can now be categorised as plant and machinery. Additionally, this advantage is not limited to commercial real estate. Various industries will be able to claim ITC on rentals for commercial properties. The ruling suggests ITC will be available retroactively. “This decision could have ramifications for hotels, infrastructure and logistics including warehousing. While the Supreme Court has upheld the constitutional validity of restrictions relating to input tax credit on construction- related procurement, it has been held that whether building constitutes ‘plant or machinery’ needs to be examined on a case-to- case basis,” said Pratik Jain, partner, PWC India. “It means where it falls in this category, credit would be allowed. It will be interesting to see if the government considers amending the GST laws after this decision,” added Jain. Saurabh Agarwal, tax partner, EY India, said: “The real estate industry should evaluate the implications of this ruling on ITC eligibility. It would be prudent for the GST Council to issue clarification allowing real estate players to claim ITC on rental income.” Tax experts pointed out the question was whether this ruling would apply to factory buildings, jetty, storage tanks, etc. Background of the case In the case of Safari Retreats, a mall owner approached Orissa HC, stating that when a mall was being built for providing commercial rental services for shop spaces, there should be no restriction on taking input credit/set-off for the GST incurred on construction. The Orissa HC upheld this argument, and the GST authorities appealed to the SC. Several such matters reached the SC, leading to the formation of a large batch of matters on this legal point. Some of these newer matters challenged the constitutional validity of restriction on input GST credit. “The biggest positive is that the court has held there is no blanket restriction on input credit/set-off of the GST cost incurred on the construction of civil structures/immoveable property, especially when the said structure itself is integral to providing the output services in question,” said Sudipta Bhattacharjee, partner at Khaitan & Co. Source : Economic Times INDIA

YEIDA Orders Probe Against Officials For Issuing False CCs

10/4/2024 12:13:00 PM

Noida: Yamuna Expressway Authority has formed a committee to investigate allegations involving senior officials, including an officer on special duty (OSD), for allegedly issuing completion certificates to 10 kiosk owners who were yet to initiate any construction. The Authority will also revoke the land allotted to the kiosks in sectors 32, 22D, 20 and 17A under various commercial department schemes. The completion certificates were issued to them between May and July. "Rules require all such files to be presented to me for approval, but that did not happen. the certificates were issued at the commercial department level," YEIDA CEO Arun Vir Singh said. He added additional CEO Shruti has been directed to investigate the charges. The certificates were issued by a manager of the commercial department and have the signatures of senior officials, including an OSD and DGM finance. Officials said the matter had repercussions on other YEIDA schemes as the 10 kiosk allottees, with their false functional certificates, could eat into the chances of other eligible applicants applying for residential plots. Once a completion certificate is issued, allottees are usually put in the reserve category for residential plot schemes too, which increase their chances of obtaining plots in the YEIDA region. Source : Times of India INDIA

Noida Authority Urges Uttar Pradesh Govt to Reconider Decision Granting Relief to Builder

10/3/2024 12:52:00 PM

Noida: Noida Authority has urged UP govt to reassess its rulings on revision petitions filed by allottees from industrial, commercial and institutional sectors. The request comes against the backdrop of around 20 adverse govt orders that caused financial losses for the Authority. Recently, UP govt's decision to grant financial relief to ET Infra Developers Pvt Ltd, the builders of the World Trade Tower in Sector 16, led to a Rs 63 crore loss. The relief was granted to compensate for delays caused by a National Green Tribunal (NGT) ban on constructions within 10km of Okhla Bird Sanctuary between 2013 and 2015. The Authority has written to the govt requesting it to reconsider the decision to grant financial relief to the developer as the developer had completed the towers before the NGT orders were imposed but failed to secure an occupancy certificate because of a lack of documents. This, the Authority argued, made the company ineligible for the waiver as the NGT ban had no effect on the project. In some cases, where the Authority extended the construction period for industrial plots from 2022 to 2024 upon payment of fees, the govt recently overturned the decision exacerbating the losses. Officials said the Authority has already suffered Rs 19 crore revenue loss in the institutional sector alone, as IT plot allottees received relief from UP govt during the recovery process. Noida Authority CEO Lokesh M said in several instances, where courts denied relief, allottees succeeded in obtaining favourable rulings by filing revision petitions against the Authority's decisions. "Allottees have filed revision petitions challenging decisions passed by the Authority under Section 41(3) of the Uttar Pradesh Urban Planning and Development Act, 1973, along with Section 12 of the Uttar Pradesh Industrial Area Development Act, 1976. After reviewing govt orders in cases related to group housing, commercial, industrial, and institutional properties, we have decided to request the govt to reconsider these cases, keeping the Authority's financial interests in mind," the CEO said. To discourage allottees from approaching the govt to secure relief, the Authority has also written to UP govt, seeking its intervention. Source : Economic Times INDIA

IIFL Home Finance to raise up to Rs 3,000 cr via public issue of bonds

10/3/2024 12:51:00 PM

India's IIFL Home Finance plans to raise up to 30 billion rupees ($358 million) through a public issue of bonds, according to a draft shelf prospectus filed by the company on Tuesday. Trust Investment Advisors and IIFL Securities are the lead managers to the home finance company's issue, which is rated AA by Crisil and India Ratings. The details of the bond issue have not yet been finalised. In September, Reuters had reported that IIFL Finance is planning to raise 100 billion rupees via debt in October-March period, as the non- bank lender looks to recover from a recent ban on issuing gold loans. In March, Reserve Bank of India had ordered IIFL Finance to stop sanctioning and disbursing gold loans, citing "material supervisory concerns". The ban was lifted last month. Source : Economic Times INDIA

Midwest Grainte Producer Files for Rs 650 Crore IPO

10/2/2024 12:40:00 PM

Upcoming IPO Alert! Leading Black Galaxy Granite producer, Midwest, is all set to go public as the company has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise Rs 650 crore through an initial public offering (IPO). With this issue, Midwest is offering a fresh issue of shares up to Rs 250 crore and an offer for sale (OFS) of up to Rs 400 crore by promoter offlaoding their stakes. The offer for sale consists of up to Rs 360 crore by Kollareddy Rama Raghava Reddy, and up to Rs 40 crore by Guntaka Ravindra Reddy. DAM Capital Advisors, Motilal Oswal Investment Advisors, and Intensive Fiscal Services Private are the book-running lead managers for the Midwest IPO, while KFin Technologies is the registrar for the public issue. Midwest said that, in consultation with the book-running lead manager, it may consider an issue of specified securities up to Rs 50 crore as a ‘pre-IPO placement’. Accordingly, if such placement is completed, the fresh issue size will be reduced. The offer is being made through the book-building process, wherein not more than 50 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15 per cent of the net offer shall be available for allocation to non-institutional investors, and not less than 35 per cent of the net offer shall be available for allocation to retail individual investors. Midwest proposes to utilize the net proceeds from the fresh issuance to the extent of Rs 127.05 crore for funding capital expenditure by Midwest Neostone, its wholly owned subsidiary, towards phase-II of the quartz grit and powder processing plant, and Rs 25.75 crore for capital expenditure for the purchase of electric dump trucks to be used by the company and APGM, its Material Subsidiary. The company also intends to use Rs 3.26 crore for capital expenditure for the integration of solar energy at certain mines of the company, and Rs 53.80 crore for pre-payment/re- payment of, in part or full, certain outstanding borrowings of the Company and APGM, as well as for general corporate purposes. Hyderabad-based Midwest Limited is one of the leading players in natural stone mining, including granite, marble, quartzite, quartz, and heavy mineral sands. Midwest has mined an average of 1.37 million cubic meters of granite annually, encompassing both marketable and waste granite between FY22-24. It is India’s largest producer and exporter of Black galaxy granite, a premium variety of granite, which has a sparkling feature with flakes of a golden hue. The company at present holds 20 mining lease licenses, five leases for which mining approvals are in the process, two granite processing units, one quartz crushing and processing unit, and one diamond tool manufacturing plant. Source : Economic Times INDIA

JSW Cement Boosts Vijayanagar Plant Capacity by 2 MTPA

10/2/2024 12:38:00 PM

JSW Cement, part of the JSW Group conglomerate, said on October 1 that it has commissioned an additional two million tonnes per annum (MTPA) capacity at its plant in Karnataka’s Vijayanagar with an investment of Rs 461 crore. With this expansion, the plant’s total capacity has increased to 6 MTPA, and the overall installed grinding capacity of JSW Cement has gone up to 20.6 MTPA, “reinforcing its focus on manufacturing green cementitious products,” according to a press release. “The new capacity addition is in line with JSW Cement’s goal of increasing the overall grinding capacity to 40.85 MTPA in the near term through greenfield and brownfield expansions across India, a growth driven by innovation, sustainability, and integrated business operations within the JSW Group,” JSW Cement said in the press release. This expansion at Vijayanagar is part of the company’s broader strategy to invest in brownfield and greenfield projects across northern and central India, including proposed units in Rajasthan, Punjab, Madhya Pradesh, and Uttar Pradesh, the statement added. “As we keep expanding, our focus will remain on innovative and sustainable manufacturing practices that support the global shift towards a circular economy,” said Nilesh Narwekar, CEO of JSW Cement. Source : Economic Times INDIA

Delhi : Housing Minister Said Draft Master Plan 2041 Likely to be Notified Soon

10/1/2024 12:18:00 PM

Ghaziabad: Shelved nearly five years ago due to perceived high costs, the 5km extension of Delhi Metro's Blue Line corridor from Noida Electronic City to Sahibabad may be revived. On Friday, Ghaziabad MP Atul Garg said a loan could be obtained from the NCR Planning Board for a period of 20 years and sought reports from GDA and Delhi Metro Rail Corporation (DMRC), which is to execute the construction. A revised project report submitted by DMRC in Jan had pegged the project's cost at Rs 1,873 crore, up from the estimated Rs 1,517 crore in a 2018 report. The report suggested that 80% of the project cost, which is Rs 1,225.34 crore, should be borne by the state govt through its agencies. UP will foot another Rs 111.8 crore in state taxes. Of the nearly 26,691 sqm of land required for the route alignment, nearly 7,690sqm is privately owned and is estimated to cost over Rs 223 crore. With funding a key hurdle, GDA had earlier considered obtaining a loan from the NCR Planning Board to finance the crucial corridor. Garg also reviewed work under 71 central govt schemes, including PMAY, under DISHA and was apprised of the measures to mitigate winter pollution. The MP was informed that PM2.5 and PM10 parameters had considerably come down — from 164.2 in 2017-18 to 77.8 last year. Between Apr 1 and Sept 19 this year, the PM levels were recorded at 45.8. "Even though particulate matter and AQI levels have come down significantly, effective steps are required to control air pollution. I have been told that the 25km stretch has been repaved, this is nearly 65% of the target. Potholes have been fixed on a 2.5km stretch, which is nearly 36% of the target," Garg said. The MP was informed that of the 296 polluting industries identified, 247 were converted to cleaner fuel and 49 closed or dismantled. An environmental compensation of Rs 6 crore was also imposed on 138 polluting units. Two traffic congestion points — Lal Kuan and Loni tri-section — were also identified and the traffic department directed to keep it free of traffic snarls. Meanwhile, Garg said efforts were being made to revive the Indirapuram extension project, which had to be placed on the back burner due to issues over compensation to farmers. The project, spread over 92 hectares of land in Mahiuddinpur Kanawani village, is among the properties the development authority is trying to monetize. In May, a GDA official told TOI that the Authority has reclaimed nearly 60 acres of land in Indirapuram and planned to auction it under commercial and residential categories, which could fetch it over Rs 1,000 crore. Source : Times of India INDIA

Delhi Metro Blue Line Extension From Noida to Sahibabad: Revitalization Plans Ahead

10/1/2024 12:18:00 PM

Union Housing and Urban Affairs Minister Manohar Lal Khattar on Monday said the draft Master Plan for Delhi-2041 (MPD) is currently under consideration and that it will be notified soon. Addressing a press conference on 100 days of the third term of the Modi government, Khattar said there have been some difficulties in preparing the final draft of the MPD, adding that some suggestions that have been received from the public are being considered. The approval of MPD has been pending for one-and-a-half years. In February last year, Delhi Lt Governor V K Saxena approved the draft MPD, saying that its thrust is on inclusive development, sustainability and innovative interventions such as transit-oriented development hubs, land pooling, heritage and Yamuna rejuvenation, and regeneration of the city. So far, the HUA ministry has not given its final approval to the MPD-2041. The MPD, prepared by the Delhi Development Authority, is a statutory document that facilitates city's development by assessing the present condition and guiding how to achieve the desired development. The first MPD was promulgated in 1962 under the Delhi Development Act, 1957. These plans are prepared for 20 years' perspective period and provide a holistic framework for planned development of the city. According to the DDA, the draft MPD-2041 is a "strategic" and "enabling" framework to guide future growth of the city, built upon the lessons learnt from the implementation of the previous plans and based on learnings from across the country with respect to implementation of various projects and schemes. Source : Economic Times INDIA

YEIDA Implements Stamp Duty for Builder-Buyer Agreements

9/30/2024 12:26:00 PM

Noida: The Yamuna Expressway Industrial Development Authority (YEIDA) has mandated that builder-buyer agreements for group housing projects will only be considered valid if stamp duty is paid. This requirement, already outlined in UP-Rera rules, ensures that buyers have valid proof of their flat registration and corresponding stamp duty payment at the time of booking. This will protect homebuyers from potential complications related to the sale or purchase of flats and plots from developers, officials said. The proposal was passed at a YEIDA board meeting on Thursday, making it applicable to all new group housing projects in Yamuna City. Builders will now be required to book flats for new buyers based on a registered builder-buyer agreement (BBA). Now, buyers will have to bear the cost of stamp duty for flat registration. While this may increase the initial financial burden, it also provides legal strength to the buyers, preventing builders from making arbitrary changes later on. Earlier this month, UP chief secretary Manoj Kumar Singh, who is also the industrial development commissioner, had directed the three industrial bodies — Noida Authority, GNIDA, and YEIDA — to take this effective step. The move aims to address the issue of realtors selling properties to multiple buyers through unregistered agreements, leading to long litigation and distress for property consumers. Additionally, the state govt seeks to minimise revenue loss associated with unregistered agreements. According to YEIDA CEO Arun Vir Singh, complaints are often received alleging that a buyer's registration was cancelled due to slight delay in depositing money. At the same time, many buyers also complain that they had booked the flat somewhere else, but the builder is giving them the keys of another flat after the payment is made. To deal with such cases, the authority has decided to enforce the rule. Under the prevailing process, buyers pay 10% of the total property cost and sign an agreement with the builder on Rs 100 stamp paper, detailing specifications about the property, including details of flats, their specifications, delivery date, and payment plan. Now, buyers will have to pay stamp duty on the 10% property cost at the time of agreement at the sub- registrar office. Source : Times of India INDIA

Supertech Challenges NBCC’s Takeover Plan to Complete 14,000 Flats

9/30/2024 12:25:00 PM

Noida: Supertech has raised questions about a proposal submitted by National Buildings Construction Corporation Ltd (NBCC) to complete 14,000 flats across 17 projects, pointing out that the state-backed company's approach would prolong timelines and keep homebuyers waiting indefinitely. The realtor also criticised NBCC's cost estimate to complete the projects, which is nearly double that of Supertech's. The developer suggested that stakeholders would benefit more if it was allowed to construct one project at a time, like that in the case of Doon Square. NBCC became involved with Supertech projects in May this year after a group of homebuyers moved the National Company Law Appellate Tribunal (NCLAT), seeking a resolution to their long-delayed flats. NCLAT asked the interim resolution professional (IRP) to explore the possibility of NBCC taking over the responsibility of completing the flats, just like it had done for Amrapali. NBCC agreed, and came up with a plan to complete 17 projects in three years. On Sept 19, the tribunal asked all stakeholders, such as homebuyers and lenders, to submit their feedback to NBCC's proposal before the next hearing on Oct 21. On Sunday, Supertech managing director RK Arora released a statement, opposing NBCC's resolution plan. According to him, the state-backed company's approach would extend construction timelines by at least six months. He noted that NBCC had decided to conduct afresh its own due diligence, despite the fact that reputable agencies like AECOM, EY and CBRE had compiled their own reports. Arora said the NBCC proposal would not only prolong the buyers' wait for flats, but it also lacked any specific timeline or repayment plan. "NBCC has no specific timelines and plans to repay banks and land authorities. The proposal has all the immunities to NBCC without any accountability towards homebuyers, banks, and land authorities. NBCC is not taking any responsibility and liability for the completion of projects and construction activities," Arora said in the statement. He also drew comparisons between NBCC's plan for Amrapali and Supertech. "The process proposed by NBCC is the same as in Amrapali, which is a failed process, causing delays in deliveries, conflict between NBCC and residents with respect to the handover of possession and maintenance. NBCC is not taking any responsibility for OC/CC and execution of sub-lease," Arora said. The Supertech MD also rejected NBCC's assertion that the projects were stalled by technical issues, claiming that the delays were because of lack of funds and not any other deficiencies. Arora highlighted Supertech's track record of completing 12 projects and delivering more than 80,000 flats, insisting that there were no complaints about construction quality. Arora, moreover, pointed out a stark difference in its cost estimate and that prepared by NBCC. According to Supertech, 16 projects – excluding Doon Square – having around 15,000 homebuyers can be completed for Rs 5,192 crore. NBCC, on the other hand, has said it will need Rs 10,378 crore — nearly double that of Supertech – for the projects, including GST and its fees. This increase in costs, Arora insisted, would directly reduce the surplus available to pay other stakeholders, such as lenders, land authorities, and operational creditors. Supertech also questioned NBCC's construction quality, claiming there were ongoing disputes over its work in Amrapali projects. Supertech plans to file its objections with the tribunal soon. The NCLAT will review the objections and suggestions on Oct 21, weighing them against NBCC's proposal. Source : Times of India INDIA

Noida Authority Asks ED to Recover Rs192 Crore From Hacienda Project

9/28/2024 12:43:00 PM

Noida: The Yamuna Expressway Industrial Development Authority (YEIDA) is set to establish its first software technology park in Sector 28. The park, which will span 100 acres, will cater to IT/ITeS companies. On Sept 11, during the inauguration of the three-day Semicon 2024 event in Greater Noida, chief minister Yogi Adityanath announced that the IT sector would be granted industry status. This will allow IT companies access to a range of benefits, including reduced plot rates and lower electricity tariffs, which are currently only available to the industrial sector. The move is expected to bridge the gap between IT and industrial sectors and meet a long-standing demand from the Noida Entrepreneurs Association and related organisations. The proposed IT park will feature 10 plots, each measuring 2.5 acres. YEIDA is currently in discussions with major Indian IT companies — including Infosys, TCS, and Wipro — for setting up operations. According to YEIDA CEO Arun Vir Singh, the development of the software park will address a critical gap in the region's industrial offerings. "The layout plan for the Software Park was approved by the YEIDA board on Thursday. Discussions are underway with major Indian IT companies such as Infosys, TCS, and Wipro for setting up operations. The development of this software park fills a missing link in the YEIDA region's industrial offerings," the CEO said. The allotment process for these plots was discussed during a review meeting led by chief minister Adityanath in Aug, CEO Singh added. At the meeting, it was decided that plots larger than 8,000 sqm will likely be allotted through an interview-based process, while smaller plots may be allotted through e-auctions. A govt order on this process is awaited. In addition to the IT park, YEIDA has approved a reduction in plot sizes for mixed-use land development in Sectors 24 and 24A. Plot sizes have been reduced from 10 acres to 2.5 acres in response to a decline in applications for larger plots in recent years. These mixed-use plots will integrate core industrial or institutional activities with residential and commercial facilities. YEIDA is also set to launch a scheme of 20 mixed-use land plots during the upcoming Navratri festival. These plots will allocate 75% of the land for core activities such as industry, business, or institutions, 12% for residential use, 8% for commercial purposes, and 5% for essential facilities like housing, malls and food plazas. Source : Times of India INDIA

YEIDA to Launch 100-Acre Software Technology Park

9/28/2024 12:43:00 PM

Noida: Noida Authority has requested the Enforcement Directorate (ED) to recover Rs 191.9 crore in dues from Hacienda Project Pvt Ltd (HPPL), the developer of Lotus 300 in Sector 107. The request, made by CEO Lokesh M, follows an order from the Allahabad high court and recent ED searches in which Rs 42 crore in cash, gold, and diamonds were seized from properties linked to former Noida CEO Mohinder Singh and the developers. Lokesh M told TOI that he wrote to the ED deputy director, Lucknow regional office, on Thursday and requested the central investigating agency to recover or seize dues from the developer. "We have urged the ED to deposit the amount to settle the outstanding liabilities with the Authority," he said. In 2010, a 17-acre plot was leased to HPPL with Nirmal Singh, Surpreet Singh Suri, and Vidur Bhardwaj as the promoters/directors, for a residential project Lotus 300 with 300 apartments. The three promoters allegedly got the prime land without investing any amount, launched the project and collected Rs 636 crore from homebuyers. Of this, they allegedly siphoned off about Rs 190 crore, then sold off a portion of land to a third company, pocketed the entire sale proceeds — nearly Rs 236 crore — and paid a petty sum to the Noida Authority towards the cost of land/premium for land and lease rent, which they were supposed to pay. After diverting the funds, the three directors resigned in 2015, pushing HPPL into insolvency — the corporate insolvency resolution was initiated after IndusInd Bank moved an application before NCLT in 2022 — to escape criminal and civil liabilities. In Feb this year, the Allahabad High Court, while hearing petitions filed by the former promoters challenging a Rs 63.7-crore recovery certificate issued by the Noida Authority in 2019, ordered an ED investigation into allegations of money laundering and diversion of funds from homebuyers. The court directed the former directors to cooperate with the investigation and authorised the ED to take legal action if they failed to do so. On Sept 18-19, ED searched 18 locations across Delhi, Noida, Meerut, Chandigarh and Goa, as a part of their investigation into a Rs 426-crore fraud involving homebuyers of the Lotus 300 project. The searches covered the offices and residential properties of HPPL, its three former promoters, and related entities, including Cloud 9 Projects Pvt Ltd and Sharda Exports, which is linked to carpet traders, its owners Aditya Gupta and Ashish Gupta in Meerut. Properties of former Noida CEO Mohinder Singh were also searched. The searches came on the heels of Supreme Court's Aug 30 order that tweaked its June order staying any further investigation by the ED against two former directors — Singh and Bhardwaj. The apex court observed that the stay on further probe did not prevent the central investigating agency from taking legal action against Vidur Bhardwaj and Nirmal Singh "in accordance with the law". This was after ED informed the SC that its preliminary probe, initiated on a Feb 2024 Allahabad high court order, had revealed financial irregularities by the former directors, which included diversion of funds. During its probe, ED reviewed nine FIRs filed by the Economic Offences Wing (EOW) of the Delhi Police between 2017 and 2020, which revealed that funds from homebuyers were diverted to entities like Three C Universal Developers Pvt Ltd and Granite Gate Properties Pvt Ltd. These funds were then funnelled through various companies in the form of unsecured loans and advances, with the original directors — Singh, Suri and Bhardwaj — or their proxies listed as directors. The ED's investigation also found that after siphoning off funds and selling the land, all three directors resigned from HPPL and appointed their employees as directors to evade liability. In its affidavit to the Supreme Court, the ED revealed that the directors had created several shell companies to launder the proceeds of the fraud. The agency also found a Rs 65-crore loan from IndusInd Bank, which was intended for the project's completion, had been misappropriated. The loan later became a non-performing asset, leaving the financial creditor in a vulnerable position. Source : Times of India INDIA

Chandigarh : Over 4000 Homes Ordered for Installations Rooftop Solar

9/27/2024 12:01:00 PM

CHANDIGARH: At least 4,000 households in Chandigarh have been served notices by the Union Territory (UT) administration, warning them of “resumption” or taking away of their property if rooftop solar power plants are not installed within two months. The notice has led to backlash from residents while Chandigarh MP Manish Tewari has called the move “coercive.” The notices, sent to owners of homes of 500 sq yard and above by UT estate department recently, have asked for installation of plants within two months under the Chandigarh Building Rules (Urban). On Tuesday, Tewari posted on ‘X,’ “A substantial number of citizens of Chandigarh are upset about coercive notices to install roof top solar plants or their properties would be resumed. They are not against renewables, but they are against coercion and they are right.” Residents expressed anger at a meeting on ‘PM Surya Ghar: Muft Bijli Yojana,’ a new scheme by Cent- re for subsidy on solar rooftop systems. Federation of Sectors Welfare Association-Chandigarh (Foswac) chairman Baljinder Singh Sandhu, who attended the meeting, said, “Residents should be free to opt for rooftop solar power plants. It involves major financial costs, which many may not be able to afford. Such notices are a scare tactic so that people opt for recently launched Central govt scheme.” A senior UT official said, “Final extension was given till March 2021 . Now, Centre is running PM Surya Ghar-Muft Bijli Yojana, which people should avail.” Sources said though installation of rooftop solar power plants was made mandatory in May 2016, response from residents was poor due to high capex cost. Source : Times of India INDIA

REPL Receives SEBI Approval for SM-REIT

9/27/2024 12:00:00 PM

Infrastructure consultants Rudrabhishek Enterprises Ltd (REPL) has announced that it has received approval for the Securities and Exchange Board of India (SEBI) to register a small and medium real estate investment trust (SM REIT), the second such application approved by the capital market regulator since finalising rules for the nascent segment earlier this year. The new SM REIT, under the name ImpactR SM REIT, will have REPL as its investment manager. SEBI had earlier approved the SM REIT application submitted by fractional ownership platform Property Share, licensed under the name Property Share Investment Trust. The latter is yet to be listed on the exchanges. "The ImpactR SM REIT will open up structured and transparent investment opportunities, making real estate accessible to a broader base of investors. With our extensive experience in real estate and urban infrastructure, we are confident this step will create a transformative impact for our stakeholders and the industry at large," said Pradeep Misra, chairman and managing director of REPL. REPL primarily works in providing consultancy services to a range of infrastructure and real estate projects. It is listed on the small and medium-scale enterprises platform on the National Stock Exchange. SEBI had finalised rules in March 2024 to bring fractional ownership platforms under the ambit of REITs through SM REIT, for assets valued between Rs 50 crore to Rs 500 crore. SM REITs, according to current rules, can launch schemes for owning real estate assets through special purpose vehicles. According to a recent report by the real estate consultants CBRE, the potential market size for SM REITs may exceed $60 billion by 2026, which can include around 350 million square feet of office space by the same year, of which 300 million square feet has been completed. The report identified Mumbai as the city with the most SM REIT-ready stock, at 75 million square feet till June 2024, followed by the National Capital Region, at around 70 million square feet. Source : Money Control INDIA

IBBI Updates Rules to Speed up Housing Sector Insolvency Resolution

9/27/2024 11:59:00 AM

The IBBI has amended the Insolvency Resolution Process for Corporate Persons norms to introduce significant changes to enhance creditor representation in the insolvency process. The board notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2024 on September 24. "The amendment regulations provide for the appointment of an interim representative who will act as a representative for a class of creditors during the period when the application for appointment of the authorised representative is under consideration of the adjudicating authority for approval," IBBI said in a release. The interim representative will have the same rights and responsibilities as a duly appointed authorised representative, particularly in the meetings of the committee of creditors. This move is aimed at facilitating the effective representation of creditors that are large in number, such as homebuyers, who often face delays and complications during the insolvency process. The amended regulations are effective from September 24, the board said. The corporate insolvency resolution process (CIRP) has been a crucial mechanism under the Insolvency and Bankruptcy Code (IBC) for resolving insolvency issues in India. With these changes, IBBI has taken a proactive step to ensure that large creditor groups are not left behind in the insolvency resolution process, maintaining the overall efficiency and fairness of the IBC framework. The Insolvency and Bankruptcy Board of India (IBBI) is a statutory body functioning under the corporate affairs ministry. Source : Business Standard INDIA

NGT Questions SEIAA’s Delay in Granting Environmental Clearance for Gurugram Colony

9/26/2024 12:24:00 PM

Gurgaon: The National Green Tribunal (NGT) has criticised the Haryana State Environmental Impact Assessment Authority (SEIAA) for its "procrastination" in determining whether a 225-acre licensed colony in Sector 47 required an environmental clearance. The tribunal's remarks come following SEIAA's failure to reach a resolution in the case despite a directive issued on July 25 last year. It has given SEIAA four weeks' time to take a call. A resident of Malibu Towne had in 2022 filed a petition with NGT alleging that 10 diesel generators were operating illegally in a green belt in the colony, and construction and demolition (C&D) waste dumping was rampant in the area. In March 2022, the Haryana State Pollution Control Board (HSPCB) carried out inspections and found that Malibu Towne was discharging untreated sewage into its drains. This prompted HSPCB to issue a closure notice to the colony's developer for failing to procure the requisite environmental clearances and other permissions in Dec 2022. Although residents remained unaffected, the board's directive prohibited any new property sales and stipulated that no new possession or occupancy would be permitted in the project. DHBVN was also instructed to refrain from releasing any new electricity connections, and all ongoing construc-tion activities were suspended. After the developer contended that there were no provisions of mandatory environmental clearance when the colony was developed decades ago, NGT had in July last year directed SEIAA to inspect the case and determine whether the permission was required. In March this year, the green tribunal also summoned officials from the Municipal Corporation of Gurugram (MCG), HSPCB, and the department of country and town planning after observing that the committee constituted to investigate the petition had provided "vague and evasive" responses. In a hearing on Sept 19, Rahul Khurana, representing SEIAA, entreated the tribunal for an additional four weeks to arrive at a conclusion. NGT, recognizing the exigency of the situation, stressed the im-portance of expeditious action, with judicial magistrate Sudhir Agarwal and expert member Dr Afroz Ahmad stating in the order, "Let it be done as stated." The order was made public on Wednesday, and the next hearing is scheduled for Oct 10. When contacted, a senior SEIAA official said, "We will follow the NGT's directions and submit our reply within four weeks." Source : Times of India INDIA

YEIDA Achieves Rs 982.51 Crore Profit in First Half of FY25

9/26/2024 12:22:00 PM

Noida: In the first half of the fiscal year, the Yamuna Expressway Industrial Development Authority (YEIDA) generated Rs 982.51 crore in revenue, marking an increase of over Rs 200 crore compared to the same period last year, when YEIDA earned Rs 708 crore. However, the Authority's expenses surpassed its earnings — with the total spending reaching Rs 1,301 crore in this period. A large portion of this expenditure, around Rs 799 crore, was directed toward land acquisition — more than double the Rs 362 crore spent on the same last year. According to officials, the Authority is focused on creating a substantial land bank to support future developments along the expressway corridor. Land acquisition was not the only segment that saw a rise in expenditure this year, with airport-related expenditures going up to Rs 204 crore from last year's Rs 164 crore. The budget allocated for development work also saw a slight increase, up by Rs 4 crore at Rs 214 crore, compared to Rs 210 crore last year. Meanwhile, the revenue for the first half of the fiscal year saw a significant boost due to a sharp rise in group housing projects. Revenue from this segment jumped from Rs 31 crore during this period last year to Rs 446 crore this year. This rise was thanks in part to the state govt's rehabilitation package for stalled projects, based on recommendations from the Amitabh Kant committee, officials noted. Other revenue sources included Rs 270 crore from industrial projects, Rs 10.14 crore from commercial developments, Rs 63 crore from institutional sectors, and Rs 114 crore from residential plots. YEIDA CEO Arun Vir Singh said, "The revenue and expenditure figures for the period from April 1 to Sept 20 will be presented at the board meeting on Thursday." For the current financial year, land acquisition remains the authority's largest expense, with a budget of Rs 6,063 crore allocated for this purpose out of the total Rs 10,000 crore. YEIDA has already submitted a proposal to acquire 1,700 hectares of land to the district administration as part of its ongoing strategy to build a robust land bank for future projects. Source : Times of India INDIA

Noida Authority Allocates New Hotel Plots to Boost City Development

9/25/2024 12:25:00 PM

Noida: The Noida Authority has launched a scheme to establish six new hotels across the city. Under this plan, plots have been marked for three budget hotels and three star-category hotels, situated in sectors 93B, 105, 135, and 142. The six hotel plots collectively span 42,790 sqm, with a total reserve price of Rs 781.48 crores. The allotment process will be conducted through an e-auction, with a pre-bid meeting scheduled for Oct 10 to address potential bidders' queries. Bid submissions will open on Oct 17 and close on Nov 9. Plots have a FAR of 3 and a 40% ground coverage. In Sector 93B, three plots have been allocated for budget hotels. For the star-category hotel, the Authority is providing three large plots in key sectors — sectors 105, 135 and 142. Meanwhile, GNIDA introduced a scheme for 20 BPO and ITES plots in Knowledge Park 5. Source : Times of India INDIA

Delhi Court Charges Supertech with Fraud: Latest Update

9/25/2024 12:24:00 PM

New Delhi: A Delhi court recently ordered the framing of charges for the offence of fraud against real estate company Supertech Limited, its managing director RK Arora, and two agents of the company. Gaurav Vij, the complainant, alleged that he was promised returns on investment and invested Rs 11.8 lakh in 2013, but the funds were diverted to another project without his knowledge. Later, he was promised a refund that was subsequently cancelled by the company. The court of judicial magistrate first class Yashdeep Chahal said that the act of diversion was a result of the direction of "Management". "For all intents and purposes, the word ‘Management' needs to be understood in a certain context and not in a general sense. It is so because the management of the company essentially vests in the managing director of the company, unless proved otherwise," said the court. The court, agreeing with the submissions of advocate Raajan Chawla, said that the counsel has rightly argued that in ordinary circumstances, the decisions of the company which are expressly attributable to the management of the company, essentially flow from the MD of the company, unless the company comes forward to show that the decision was taken by some other officer of the company. In the present matter, the proof of criminality allegedly committed by Arora lies in the e-mail communications between the complainant and the company, the court noted. Further saying that the e-mail communications categorically indicate that the case of the complainant was placed before "Management M/s. Supertech Limited", as made out from the e-mail dated July 19, 2014. At one stage, the complainant was informed on Oct 14, 2014 that his case had been processed for a refund. Thereafter, no refund was given and on Nov 20, 2014, the complainant was informed that his case had been put up with "Management" and the mandate given by the management was not to give any refund but to transfer the funds of the complainant to some other project of the accused company. The material on record does not appear to be groundless in nature and it cannot be said that no case is made out if the material is accepted as unrebutted, the court stated. Owing to the corporate veil enjoyed by a corporate entity, no outsider is expected to know meticulously about the internal affairs of a company and it would be unreasonable to expect the complainant, being an outsider/investor, to meticulously specify the acts and omissions attributable to the officer of the company, the court said. "Although the complete picture has not been revealed yet, the material on record so far is certainly not inadequate to completely absolve the accused persons. Accordingly, the accused persons are liable to be charged for the commission of offence under Section 420 read with Section 34 of IPC," the court concluded. Source : Times of India INDIA

Gurugram : DTCP Cracks Down on Eleven Illegal Buildings

9/25/2024 12:21:00 PM

Gurgaon: The department of town and country planning (DTCP) has initiated action against 11 illegally-constructed buildings in Palam Vihar's C2 block, ordering that their water, sewer and electricity connections be cut off. Each 500 sq yd plot, originally meant to have a single housing unit per floor, has as many as 16 unauthorised flats. District town planner (enforcement) Manish Yadav has written to the MCG commissioner, GMDA executive engineer and DHBVN requesting the disconnections. The tehsildar has also been instructed to halt any further registration of these properties. "All three departments have been instructed to take immediate action, and our enforcement office is actively working on the necessary measures," Yadav said. The case is currently pending in the Punjab and Haryana high court, following a petition by the Palam Vihar C2 Block RWA and other locals. Residents also took to the streets over the issue, after which the petition was submitted before HC. DTCP has named specific plots — 913, 1310, 921, 1251, 924, 979B, 956, 1226, 922, 935, and 951 — in the letters to the relevant authorities. It had also filed police complaints against several building owners for similar illegal constructions in the past. Some building owners allegedly illegally de-sealed their properties, prompting the department to take further sealing action and recommend additional FIRs. Residents have expressed concern about the impact of these illegal constructions on basic infrastructure in the area. Where only one unit per floor is permitted, the property owners constructed four to six units per floor. In alleged collusion with tehsil officials, these properties were registered and water and electricity connections issued, they said. Source : Times of India INDIA

ED Freezes Assets of Sai Construction Partner in PMLA Case

9/24/2024 12:01:00 PM

NEW DELHI: The Enforcement Directorate's Lucknow Zonal Office provisionally attached immovable assets amounting to Rs 14.89 crore (approx.) in the case of real estate broker, Rajeev Tyagi and others under the and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, informed a press release on Monday. According to the release, the assets include several immovable properties in the form of flats, commercial shops, residential and industrial plots, registered in the names of Rajeev Tyagi, partner of M/s Sai Construction and Builders, and his sons Amartya Raj Tyagi and Kanishk Raj Tyagi, M/s SKT Garments Private Limited, and M/s. SK Enterprises. ED initiated an investigation based on an FIR registered by CBI, Ghaziabad, (UP) under various sections of IPC, 1860, and the Prevention of Corruption Act, 1988, against M/s Sai Construction and Builders, Ghaziabad, and its partners and others for alleged loan fraud. ED investigation revealed that Rajeev Tyagi, along with his wife, Meenu Tyagi, through their partnership firm, viz., M/s Sai Construction and Builders, Ghaziabad, hatched a "criminal conspiracy" in connivance with other associates/guarantors and availed loans/financial facilities from the bank (erstwhile Corporation Bank and now Union Bank of India after the merger) by submitting fake/forged documents and inflated valuation reports of the mortgaged properties with the intention to defraud the bank, the release added. ED investigation also revealed that loans/financial facilities availed from the bank were allegedly layered/diverted/syphoned off through his accounts or accounts of associated persons/entities, and subsequently utilised the same for other than intended purposes, resulting in default of loan repayment, which caused a huge loss to the public sector bank. Further investigation is underway in the case. Source : Economic Times INDIA

Haryana to Blacklist 18 Architects for Issuing Illegal Occupancy Certificates

9/24/2024 12:00:00 PM

Gurgaon: Almost three months after they were blacklisted by the director of the department of town and country planning (DTCP), the Haryana Shahari Vikas Pradhikaran (HSVP) has taken action against 18 architects involved in issuing occupancy certificates (OC) for buildings with four floors, violating the govt's guidelines. The chief town planner of the HSVP has now written to the senior officials of the information technology department ordering removal of the blacklisted architects' IDs from the online building plan approval system. In addition, a detailed report on the removal process is expected to be submitted soon for further review by the DTCP director. A senior HSVP official said, "These architects, responsible for unlawfully certifying multiple residential structures, have been blacklisted and their details will soon be uploaded on the HSVP website." In July, the director had blacklisted these architects and written to the council of architecture, requesting the cancellation of the registration of these architects. The process of cancelling their registration is currently under review by the council and it is expected to take a few months. The architects approved OCs for buildings with four floors and stilt parking, bypassing regulations set by the authorities. The HSVP had already placed restrictions on the construction of four floors in Feb 2023. Despite this, these architects issued OCs under the Self-Certification Rules without ensuring proper compliance with building norms. They also issued OCs for buildings that didn't have sanctioned plans for four floors. Many of these structures had not even deposited essential fees like floor-area ratio (FAR) and external development charges (EDC), making their OC issuance illegal. During an investigation, about 58 houses were found to have received OCs in violation of rules. The then town planner had listed these properties, prompting the current action against the architects. The blacklisted architects include Anuj Yadav, Saurabh Kathuria, Pankaj Kumar, Himani Gupta, Amit Bhardwaj, Krishana, Ganendra Kumar, Manveer Bhadana, Vikrant Pundir, Arun Kumar, Ravi, Prabhat Kumar, Gaurav Singla, Puneet Kochar, Rohit Chugh, Ujjwal Saini, Neeraj Dixit and Ritika Anand. These architects face an uncertain future as the council of architecture continues its investigation into their misconduct. Source : Times of India INDIA

Punjab & Haryana High Court Restrains Builder Bajwa From Selling His Properties

9/23/2024 12:28:00 PM

Chandigarh: The Punjab and Haryana high court has restrained Jarnail Singh Bajwa, the managing director (MD) of real estate company Bajwa Developers Private Limited, from alienating any of his property to any third party. The court has passed the orders considering a large number of FIRs pending for several years in which Bajwa has never been arrested by the police till date. “Keeping in view the gravity and sensitivity involved in the petition, Jarnail Singh Bajwa who is present in person is directed not to transfer, sell, dispose of, any of the properties detailed in the affidavit dated Sept 20, filed today in court, till further orders,” the HC ordered on Friday. The HC has also directed Bajwa’s counsel to produce a complete list of his properties, which were not mentioned in the affidavit, by Sept 25. Shocked over the inaction of Punjab Police in taking action in several old cases, the HC has also recorded, “This court is amazed to see shocking approach of law enforcing agency as one FIR No.328 with Kharar police station, dated Oct 2, 2008, is also pending investigation without his arrest i.e. more than 16 years by now for offences under Sections 323, 452, 506, 148, 149 and 120-B of IPC. Apart from that in FIR No. 87, dated July 25, 2017, and FIR No. 178, dated Aug 18, 2017, with Kharar city police station, his arrest is awaited for seven years.” The court has also mentioned about other cases, including 20 FIRs in Mohali in which 16 were registered at NRI police station. Another FIR is registered with Singh Bhagwantpura police station, Rupnagar, dated April 6, 2019, under Sections 406, 420, 365, 382, 506, 34 IPC and Sections 25 and 27 of Arms Act. In this case also, status reflects he has not been arrested till date. In yet another FIR No.28, dated July 17, 2019, police station State Crime BOI, Mohali, against Bajwa is pending investigation in which arrest is pending for the last five years. In total five such cases came to light where the arrest of Bajwa is yet to be affected. In its orders, Justice Sandeep Maudgil has also recorded that Bajwa has not furnished complete details of moveable assets. To this, his counsel requested for some time. The matter is pending before the high court in the wake of a petition filed by Kuldeepak Mittal alleging that the Punjab Police has not arrested Bajwa despite the fact that his bail has been cancelled by the high court in Oct last year. Following the reprimand by the HC, the police had arrested Bajwa last month. Source : Times of India INDIA

NCLAT Allow Homebuyers to File Feedback on NBCC’s Supertech Plan

9/23/2024 12:25:00 PM

Noida: National Company Law Appellate Tribunal (NCLAT) has asked 27,000 homebuyers and other stakeholders to submit objections, if any, to a proposal by National Buildings Construction Corporation Ltd (NBCC) to complete delayed Supertech projects. On Sept 19, NCLAT asked the interim resolution professional to look into the concerns of homebuyers, compile a report on objections and suggestions from lenders and landowners as well and upload it on Supertech's website in two weeks. The stakeholders, who have been waiting for years for the completion of projects — many of which are stalled over funds — recently filed an application with NCLAT. Their key demands included an assurance against cost escalation of flats, a forensic audit of accounts to find out if there was any funds diversion and removal of all the then promoters. The tribunal will now review the objections and suggestions on Oct 21 and weigh them against NBCC's proposal. "Counsel for Noida, Greater Noida, landowners, lenders, the Yamuna Expressway Authority of India, and the homebuyers are granted two weeks to file objections to IA No. 6557 of 2024 (filed by NBCC). These objections should also be submitted to the IRP. All objections will be tabulated by the IRP, and the substance of the objections will be presented in chart form to the court on the next date of hearing so that NBCC's application and the objections can be considered and resolved. All lenders, homebuyers, landowners, and banks are permitted to e-file the objections with a copy sent to the IRP," read the Sept 19 order by NCLAT chairperson Ashok Bhushan and technical member Barun Mitra. Responding to an appeal from homebuyers, NCLAT had in May this year instructed the IRP to engage with NBCC and explore the possibility of the govt-backed construction company to take over the delayed Supertech projects, just like it had done in the case of Amrapali. NBCC, subsequently, came up with an extensive plan to complete 50,000 flats across 17 Supertech projects in three years. It asked NCLAT for permission to act as the project management consultant. NCLAT asked NBCC to take prompt action and submit a detailed project report. The tribunal also heard matters related to Supertech's Doon Square project in Dehradun. Bank of Baroda, one of the company's principal lenders, had recently approved a one-time settlement proposal for the project. There are 750 units in the project, of which 150 studio apartments have been handed over. Bank of Baroda's proposal outlines specific conditions, including an initial deposit and a structured repayment plan contingent on NCLAT's clearance. The next hearing for Doon Square is scheduled for Sept 25, when NCLAT will review the terms of the OTS approved by the bank and determine the next course of action. It was in June 2022 that NCLAT limited insolvency proceedings against Supertech to just one of its projects, Ecovillage 2, using reverse CIRP. This allowed Supertech to maintain control over the project's execution in the presence of an IRP. The Supreme Court upheld this decision in June 2023, allowing for a project-wise resolution approach. Source : Times of India INDIA

DAA Starts Sells Dwarka Flats From Tomorrow

9/23/2024 12:23:00 PM

New Delhi: Delhi Development Authority (DDA) is set to introduce e-auction for flats offered under the recent Dwarka Housing Scheme 2024, starting from Sept 24. The authority launched three housing schemes on Aug 20 — Sasta Ghar Scheme (7,124 EWS and LIG flats), Madhyam Vargiya Housing Scheme (1,843 EWS, MIG and HIG flats), and Dwarka Housing Scheme (173 flats) — across seven locations in the capital. The flats in the first two schemes were offered on a first-come, first-serve basis. The e-auction is for penthouses, super HIG, HIG, and MIG categories in various sectors of Dwarka. The last date for submitting the earnest money deposit (EMD) and the final submission of applications for the Dwarka flats scheme were Sept 17 and 19, respectively "The live e-auction for these flats will be conducted every day between Sept 24-26 from 11 am to noon and 3-4 pm. Initially, the bidding process will be for one hour and if in the last 5 minutes, any higher bid is placed, the bidding process will automatically be extended by 5 minutes. This process will be continued for a maximum of 20 times. So, any auction can go for a maximum period of 2 hours and 40 minutes," DDA said in a circular issued recently. "For 173 flats in Dwarka, over 2,000 people have submitted EMD, so we expect all flats to be sold easily. We are also expecting the sales to pick up during Navaratri for flats in the Sasta and Madhyama schemes," an official said. Approximately 1,700 out of the 8,967 DDA flats on offer across the last two schemes and categories have been sold so far. "In fact, apart from DDA being successful in selling all flats at Jasola, flats in Rohini too sold out on the first-come, first-serve basis," a DDA official said. The 41 flats in Jasola were sold out on the first day. Over 700 flats in Rohini sold out within 10 days. Source : Times of India INDIA

Haryana DTCP Raised FAR Rates For Large Plots by 20 %

9/23/2024 12:22:00 PM

GURGAON: Construction of large properties is set to become costlier, with Haryana's department of town and country planning (DTCP) increasing rates for purchasing floor area ratio (FAR) by around 20%. It is the first hike since 2016. Officials told TOI on Sunday that the increase in rates is meant to address rising demand for land in cities like Gurgaon, where population density is rapidly growing. FAR is the ratio of a building's total floor area to the size of the plot/land on which it was built. DTCP additional chief secretary Arun Kumar Gupta on Sept 10 issued the directive, which specified that there are no changes in FAR rates for plots up to 250sqm. For plots between 250sqm and 350sqm, the new FAR rate is Rs 4,500 per sqm, up 19% from Rs 3,770/sqm. The revised rate for plots between 350sqm and 450sqm is Rs 6,500/sqm, up 21% from Rs 5,380 earlier. The hike is almost 24% for plots larger than 500sqm. The FAR purchase rate for this category was Rs 8,070/sqm and goes up to Rs 10,000 per sqm. A DTCP official said apart from encouraging city planning, revenue earned from increased FAR rates will be given to the municipal corporation for development. But developers said the move could slow down large projects and substantially increase construction costs, forcing realtors to push the burden on homebuyers. "A 20% increase in FAR rates will certainly impact construction costs for larger plots in Gurgaon. While this move is aimed at boosting municipal development, it poses a significant challenge for developers and individual homeowners, especially those working with tight budgets. The additional financial burden may slow down large-scale residential projects and could potentially shift demand towards smaller plots. Developers will need to reassess their project budgets and pass some of the cost to buyers, which may affect property prices in the area," a developer said. Deepak Verma, a city resident, said the increase in FAR rate was worrying. "This makes it harder for people like us to afford homes, especially in a city like Gurgaon where prices are already high," he said. The DTCP directive said there won't be an option to purchase additional FAR for plots up to 75sqm. The existing FAR rate for plots between 75 and 100 sqm remains at Rs 1,615 per sqm. According to officials, the changes have been communicated to Haryana Shahari Vikas Pradhikaran (HSVP), town planning departments, urban local bodies (ULB) department, HSIIDC and other relevant agencies. All departments have been instructed to update their processes in line with the revised FAR pricing structure. Source : Times of India INDIA

YEIDA Unveils 1,200 Flats Near Upcoming Noida Airport

9/20/2024 1:17:00 PM

The scheme offers three types of flats in the affordable category near the Noida international airport, which is slated to become operational by next April, said officials. The one-bedroom units, with a total area of 29.76 square metres and a usable living space of 21.62 square metres, cost ₹23.37 lakh on the ground floor and ₹20.72 lakh on the first, second, and third floors. Allotment on first-come-first-serve basis “We will allot these flats on a ‘first come first served’ basis to applicants who will pay the money and buy the unit. These flats were left out in old schemes. But, this time, we hope that people will rush to grab these flats that are located along the Yamuna Expressway because of the upcoming airport project near Jewar,” said Arun Vir Singh, chief executive officer, Yeida. There are 276 flats available in this category. The second option is the one-bedroom flats in four-storey buildings with a total area of 54.75 square metres and a living space of 36.97 square metres. The price of the flat is ₹33.05 lakh, and there are 713 flats available. There are also two-bedroom flats in multi-storey towers, with a total area of 99.86 square metres and a living space of 64.72 square metres. These will cost ₹45.09 lakh, and there are 250 flats available in buildings of up to 16 floors. How to apply for the YEIDA housing scheme? To apply for the scheme, interested individuals should submit an online application through the Yamuna Expressway authority website, pay a non-refundable registration fee of ₹600, and an earnest money deposit (EMD) of 10% of the total premium of the selected flat. Eligible applicants must be Indian citizens above 18 years of age and have not been allotted any other flats or plots by Yeida in the past. Joint applications with immediate family members are allowed, said officials. Payment modalities Yeida said an applicant can pay the total amount of the flat at one go and get 2% discount or pay 10% to apply, 20% in the next 30 days, and remaining 70% over five years. The authority will impose 10% interest on the remaining 70% flat cost, said officials. Will Yeida maintain the flats? Yeida will provide maintenance for a two-year period following possession, after which an apartment owners association (AOA) will be formed to take over the responsibility of managing the complex. Allottees are required to contribute to a maintenance corpus fund, and the amounts will range from ₹50,000 for affordable one- bedroom flats,and ₹1.5 lakh for two-bedroom units. Participation in the AOA is mandatory for all allottees, said Yeida. Source : Hindustan Times INDIA

Wave Group Plans to Sell Land in Ghaziabad Township

9/20/2024 1:15:00 PM

Realty developer Wave group is diluting part of its land bank in Wave City in Ghaziabad and has sold land to at least half a dozen builder in order to improve cash flow. It is also in talks with more developers to sell land. The combined areas these real estate developers will develop will be around 12 million square feet in the next few years. Wave group is also planning to launch its project in the same township. "The buyers' demand for premium apartments in the township has sharply increased over the last 12 months. As a result, the price in the secondary market jumped by almost 30% in the period,” said Rajiv Gupta, managing director of Wave City. Wave Group has planned to launch around seven million square feet in the combination of premium and affordable categories. Gaurs group recently launched three-million-square- foot luxury residential complex in the township with 1,216 flats last week, which had already been sold for a total value of Rs 3,100 crore. The base price for premium residential projects in Noida and Gurgaon is upward of Rs 15,000 and 20,000 per square ft, respectively, while in Wave City, it is below Rs 9,000 per square ft. This smart city is adjacent to NH-24 and spans over 4,200 acres, with one-third dedicated to green areas and infrastructure development. Source : Reality Magazine INDIA

YEIDA’s Commercial Plot E-Auction Raises Rs 500 Crore

9/19/2024 1:17:00 PM

The Yamuna Expressway Industrial Development Authority (Yeida) on Tuesday said it has sold 45 commercial plots to generate a revenue of ₹265.14 crore as a few buyers placed bids higher than the reserve price of plots located near the Noida international airport in Jewar. The authority launched a commercial plot scheme a month ago, inviting applications from interested buyers. On Tuesday, Yeida held the e-bidding to allot plots to the person placing the highest bid against the reserve price. As per the prevailing market sentiments, Yeida fixed ₹2.50 crore for each plot measuring 1,000 square metres for shopping complexes in different areas. “We will be able to generate a revenue of ₹265.14 crore against the fixed reserve price of ₹112.50 crore because some applicants placed very high bids against certain plots. We will be able to get an additional amount of ₹152.64 crore because the bids went up by 134% against the reserve price for certain plots,” said Arun Vir Singh, chief executive officer (CEO), Yeida. The reason behind placing higher bids against the reserve price is that buyers want to cater to the commercial space demand generated by the Noida international airport, which is set to become functional by April-end 2025, he added. What does the DPR say? As per the detailed project reports (DPRs) of applicants who participated in the commercial plot scheme, they will together make an investment of ₹500 crore in all 45 commercial projects. And they estimate to create 5,000 jobs in the region once these projects become operational, said officials. “We are surprised that applicants placed 12% higher bids against three plots. These three applicants are Challenger Compute, Alexis Global and Sanash Impex. The Challenger Computers placed a bid of ₹28.28 crore against ₹2.5 crore reserve price, Challenger Computers bid ₹26.64 crore, and Sanash Impex bid ₹25.84 crore, thereby helping the authority to generate ₹80.76 crore from just three plots,” said Singh. On apprehensions about construction, another Yeida official said: “Some people think that after buying these three plots for such a high price, these buyers will run away without starting construction. But in such a scenario, the 10% security amount that they paid for participating in the e-auction will be forfeited.” “The future will clarify whether these three companies were serious about taking these plots. If they come to take possession and develop a project, then it means that they want to cash in on the sentiment created due to the Noida airport,” said Dinesh Gupta, secretary, Confederation of Real Estate Developers Association of India (CREDAI), a realtors’ lobbying group. Source : Hindustan Times INDIA

Bajaj Housing Finance Shares Dip After Recent Surge

9/19/2024 1:16:00 PM

Bajaj Housing Finance share price extended decline for the second straight session on Thursday, falling more than 7% amid profit booking at higher levels. Bajaj Housing Finance shares plunged as much as 7.3% to ₹161.00 apiece on the BSE. Today's fall in Bajaj Housing Finance stock price comes after a 4.3% drop witnessed in the previous session. With this, Bajaj Housing Finance shares have fallen more than 11% in two trading sessions, followed by two sessions of healthy gains after listing. The newly listed Bajaj Housing Finance shares hit a high of ₹188.45 apiece, taking its market capitalization to more than ₹1.5 lakh crore on September 18. Bajaj Housing Finance shares made a stellar stock market debut on September 16 as the stock was listed at ₹150 per share, a premium of over 114% to the issue price of ₹70 apiece. Bajaj Housing Finance stock came under selling pressure at higher levels on Thursday as investors opted for profit booking amid high valuations. Analysts believe Bajaj Housing Finance IPO investors may book profit after the recent surge in the stock price. “Bajaj Housing Finance shares are likely to witness short-term profit booking after the rally post strong listing. While the long-term prospects of the company and housing finance industry in India are good, the price sustainability for Bajaj Housing Finance stock will take time,” said Avinash Gorakshakar, Head of Research at Profitmart Securities. Gorakshakar believes the valuations of Bajaj Housing Finance shares look expensive at FY24 earnings. He advises IPO investors should book part profit in their holdings of Bajaj Housing Finance shares, while suggesting that ₹150 - 155 levels may be good entry levels for new investors. At 10:10 am, Bajaj Housing Finance shares were trading 5.83% lower at ₹163.56 apiece on the BSE. Source : LiveMint INDIA

Arkade Developers IPO Sees Overwhelming Response

9/19/2024 1:15:00 PM

The initial public offer of Arkade Developers got subscribed 29.42 times on Wednesday, day three of the share sale. The Rs 410-crore initial share sale received bids for 69,94,46,440 shares against 2,37,75,719 shares on offer, according to NSE data. The quota for non-institutional investors garnered 58.80 times subscription while the Retail Individual Investors (RIIs) part got subscribed 33.26 times. The portion for Qualified Institutional Buyers (QIBs) received 61 per cent subscription. The initial public offer of Arkade Developers Ltd got fully subscribed on the first day of the share sale on Monday and ended the day with 5.79 times subscription. Realty firm Arkade Developers Ltd has raised Rs 122.40 crore from anchor investors. The company has fixed a price band of Rs 121- 128 per share for its Rs 410-crore initial public offering. The initial share sale will conclude on September 19. The IPO is entirely a fresh issue of equity shares worth Rs 410 crore with no offer-for- sale (OFS) component. Proceeds from the issue will be used for the development of the company's ongoing as well as upcoming projects, funding the acquisition of future real estate projects and general corporate purposes. Arkade Developers is a fast-growing real estate development company with a significant presence in Mumbai. Unistone Capital Private Ltd is the manager to the offer. Source : Business Standard INDIA

NGT Acts on Jaypee Wishtown Environmental Concerns

9/19/2024 1:14:00 PM

New Delhi: The National Green Tribunal (NGT) has sought responses of the Centre, the forest and environment department of the Uttar Pradesh govt and others on a plea alleging environmental violations by a realtor in Noida. The green body was hearing a petition filed by the residents of Jaypee Wishtown alleging that the developer, Jaypee Infratech Limited, is making major changes in the townships in contravention of norms. In a recent order, a bench headed by NGT Chairperson Justice Prakash Shrivastava took note of the allegations about the township being located on the Yamuna riverbed, around 2 km from the river, under the Okhla Bird Sanctuary. The bench, also comprising judicial member Justice Arun Kumar Tyagi and expert member A Senthil Vel, took note of the claims about the realtor felling trees illegally and raising commercial construction in a green area. "The original application (OA) raises a substantial issue relating to the compliance of environmental norms. Issue notice to the respondents for filing their response/reply by way of affidavit at least one week before the next date of hearing (on November 23)," the tribunal said. The respondents or parties in the case are the Centre, the Noida Development Authority, the Uttar Pradesh Pollution Control Board, the state forest and environment department and SHO of sector 126. Source : Times of India INDIA

Arkade Development IPO : Oversubscribed 63.60 Times by Day 2 of Bidding

9/18/2024 12:08:00 PM

The initial public offer of Arkade Developers Ltd received 16.20 times subscription on the second day of bidding on Tuesday. The initial share sale received bids for 3,851,04,390 shares against 23,775,719 shares on offer, as per NSE data. The portion for non-institutional investors attracted 28.26 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 19.99 times. The quota for Qualified Institutional Buyers (QIBs) fetched 44 per cent subscription. The initial public offer of Arkade Developers Ltd got fully subscribed on the first day of the share sale on Monday and ended the day with 5.79 times subscription. Realty firm Arkade Developers Ltd has raised Rs 122.40 crore from anchor investors. The company has fixed a price band of Rs 121- 128 per share for its Rs 410-crore initial public offering. The initial share sale will conclude on September 19. The IPO is entirely a fresh issue of equity shares worth Rs 410 crore with no offer-for- sale (OFS) component. Proceeds from the issue will be used for the development of the company's ongoing as well as upcoming projects, funding the acquisition of future real estate projects and general corporate purposes. Arkade Developers is a fast-growing real estate development company with a significant presence in Mumbai. Unistone Capital Private Ltd is the manager to the offer. Source : Economic Times INDIA

Punjab Development Authorities Collect Rs 2,945 Crore via E-auction of Properties

9/18/2024 12:04:00 PM

Punjab’s real estate market witnessed a significant boost as the state’s development authorities collectively amassed a staggering Rs 2,945 crore in a single day from an e- auction of various properties. The auction, held on September 16 (Monday), is being hailed as a testament to its investor-friendly policies by the government, which has been actively promoting development and creating opportunities for citizens. The e-auctions, which began on September 6, featured a wide range of properties including group housing, multiplexes, commercial chunks, residential plots, and small commercial establishments like booths and shops. The Punjab Urban Planning and Development Authority (PUDA) and several regional authorities, such as Greater Mohali Area Development Authority (GMADA), Ludhiana, and Bathinda Development Authorities (BDA), facilitated the auction, which saw enthusiastic participation from individuals and businesses alike. Chief Minister Bhagwant Mann praised the public’s overwhelming response and highlighted the government’s efforts in creating an investor-friendly environment. “The massive turnout for these auctions reflects the people's faith in our pro-development policies. Every penny generated from these auctions will be reinvested into infrastructure projects to further improve the quality of life in Punjab,” Mann said. The auction results were particularly impressive, with GMADA alone contributing Rs 2,505 crore to the state's coffers by successfully auctioning two commercial chunks of Sector 62 — one each situated in Eco City-1 and Aerocity; three group housing sites located in Sector 66, Ecocity-2, and Medicity respectively; besides 16 SCOs and 12 booths situated in different sectors of Mohali. PUDA, which conducted the sale of 162 optimum Utilization of Vacant Government Lands (OUVGL) properties, earned Rs 224 crore; while GLADA brought in Rs 108 crore by auctioning 32 properties. The remaining revenue came from BDA, ADA, PDA, and JDA, all of which successfully auctioned several plots. As per information shared, BDA was able to auction 23 properties, ADA and JDA found bidders for 34 and 22 properties respectively and PDA auctioned 17 properties. Mann said that the successful bidders would be allotted the sites on depositing the 10 percent payment and possession would be handed over to them on payment of 25 percent of the total bid amount. Officials lauded the smooth and transparent auction process, attributing its success to the professionalism and dedication of the staff involved. These properties are expected to attract further investment and spur economic growth in the region. Revenue Generated by Development Authorities PUDA Rs 224.11 crore GMADA Rs 2,505.45 crore GLADA Rs 108.59 crore BDA Rs 46.29 crore PDA Rs 21.39 crore JDA Rs 20.63 crore ADA Rs 19.25 crore Total Rs 2,945.71 crore Source : Economic Time INDIA

Noida Authority to Launch 1,200 Plots Under Various Scheme

9/17/2024 11:24:00 AM

Noida: Noida Authority has identified around 1,200 plots across various categories for multiple schemes slated to launch soon. Additionally, plots where construction has not begun within the lease period will be subject to cancellation. A public notice regarding these plots will be published in newspapers before initiating cancellation. During a recent meeting chaired by CEO Lokesh M, the civil department provided a report according to which 1,190 vacant plots across sectors in work circles 1 to 10 are vacant. These plots, designated for industrial, residential, commercial, group housing, institutional, and facility purposes, are either unallocated, allocated but lacking construction, or have been cancelled after allocation due to various issues. The CEO directed the relevant asset departments to verify the status of these plots based on the civil department's report and initiate the publication of schemes for the unallocated plots. The Noida Authority targets to allocate 5.5 lakh square metres (135 acres) of land across various categories in this fiscal year. A total of 3.2 lakh square metres has been set aside for allotment under institutional purposes, 1 lakh square metres for industrial sectors, 67,500 square metres for residential plots, 35,000 square metres for commercial sectors, and 13,800 square metres for group housing projects. In terms of revenue, the Authority aims to generate Rs 3,795 crore from these allocations. The group housing sector is expected to contribute Rs 1,080 crore, followed by Rs 1,010 crore from the commercial sector. The industrial sector is projected to generate Rs 705 crore, while residential plots will bring in Rs 650 crore. Institutional allocations are expected to generate Rs 315 crore, and residential buildings will contribute Rs 35 crore. Source : Times of India INDIA

Punjab Governor: UT to Seek Legal Advice on Property and Land Dispute

9/17/2024 11:22:00 AM

Chandigarh: The UT administration will take a legal advice and act on issues including ban on share-wise properties, misuse penalty notices, one-time scheme for VAT cases and other citizen demands, said Punjab governor and UT administrator Gulab Chand Kataria during the Administrator’s Advisory Council (AAC) meeting held on Saturday. The administrator said a follow-up meeting with the chairpersons of the council’s sub- committees and other key dignitaries to resolve long-standing issues and guide policy decisions will be held. Senior UT officials will also be present in the meeting and share their response on these issues. The administrator also suggested forming small working groups for in-depth deliberations on the issues for a time bound redressal of the key issues and demands. Chandigarh MP Manish Tewari also stressed on the need to re-evaluate governance paradigm of the city and giving due role the people’s representatives in the decision making. In the matter of seeking permission for the floor-wise registries in UT Chandigarh, Tewari said the Chandigarh administration has misinterpreted the judgment of the Supreme Court. On the suggestion of approaching the apex court on the issue, senior BJP leader Sanjay Tandon said that the administration should decide at its own level on the issue and allow for the share-wise properties. Tandon supported allowing floor-wise registry in the city. Former Chandigarh MP Satya Pal Jain said provision of apartmentalisation is misused by the property dealers. Chandigarh Congress president H S Lucky raised the issues of non-implementation of MSME Act in the Union Territory, conversion of leasehold commercial and industrial to freehold. He also strongly demanded the withdrawal of misuse penalty notices being sent to industrial and commercial units. The demand for a review of the Chandigarh Master Plan was also raised. Council member Pankaj Khanna said, it was high time the Chandigarh Master Plan was reviewed in line with the changing needs and requirements of the city, particularly, master plan provision of ‘urban renewal’ should be worked upon. Raising the issue of composition and working of the Chandigarh Heritage Conservation Committee, MPS Chawla, president, Chandigarh Industrial Association, said, that it should be re-organised and representation to different sections of society should be given in the committee. Charanjiv Singh, president, Chandigarh Beopar Mandal, said, “As seven years have passed since end of Vat regime, still notice of crores of rupees are being issued to traders. So, OTS scheme for assessment of old vat cases should be introduced on Punjab Pattern to give relief to traders. It will also give revenue to state.” Chandigarh mayor Kuldeep Kumar said water connections outside the lal dora should be exptended. Source: Times of India INDIA

HC Pauses Construction in Palam Vihar Following RWA Petition

9/16/2024 12:50:00 PM

Gurgaon: The Punjab and Haryana high court has sought a response from the state govt over the construction of additional flats and floors in residential buildings in Palam Vihar's C-2 Block in violation of the Haryana Building Code Regulations, following a petition from the local resident welfare association (RWA). Despite previous sealing by department of town and country planning (DTPE), the buildings were illegally de-sealed, leading to an FIR. Justices Arun Palli and Vikram Agarwal issued an order to halt further construction on the building and sought a response from various govt departments by Oct 28. Jointly filed by a local resident Ravi Bhardwaj and 15 others, the petition flagged around a dozen flats — 979B, 921, 922, 924, 935, 913, 951, 956, 1251, 1226, and 1310 — in C-2 Block of the colony were four-storey buildings with stilt parking, and had four flats on each floor. It urged the court to address violations related to electricity, sewer and water supply services. It stressed that failure to enforce action would set a dangerous precedent for other colonies. Advocate Abdul Shahbaz Thind, appearing for the petitioners, said the high court has issued notices to the town planning department, municipal corporation, and the deputy commissioner. Source : Times of India INDIA

PM Modi Distributes Sanction Letters to 32000 PMAY-Gramin Beneficiaries

9/16/2024 12:50:00 PM

Ranchi, Sep 15: Prime Minister Narendra Modi on Sunday virtually distributed sanction letters to 32,000 beneficiaries under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) and released the first instalment of Rs 32 crore for the construction of houses. He also virtually handed over keys to 46,000 beneficiaries of PMAY-G across the country. “In line with his commitment to housing for all, the PM distributed sanction letters to 32,000 Pradhan Mantri Awas Yojana- Gramin (PMAY-G) beneficiaries from Jharkhand. He released the first instalment of assistance to the beneficiaries. The prime minister also participated in the ‘Griha Pravesh’ celebrations of 46,000 beneficiaries,” a statement from the Prime Minister’s Office said. The Centre has approved 1,13,400 houses for the poor in Jharkhand under the PMAY-G scheme. Addressing the beneficiaries virtually from Ranchi, Modi said that the first instalment of PMAY-G was released and thousands of houses were also handed over under the scheme. “The prime minister underlined that the first instalment of the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) was being started today, which would ensure pucca houses to thousands of beneficiaries. Other facilities of toilet, drinking water, electricity, gas connection were also provided along with PMAY-G,” the statement said. The PM pointed out that when a “family gets its own house, their self-confidence increases”. Thousands of jobs were also being created in villages and cities for the people of Jharkhand along with pucca houses through PM Awas Yojna, he said. Modi also said the PM-Janman scheme is being run for the tribal brothers and sisters of Jharkhand and other parts of the country. “Efforts are being made to reach out to the tribes, who are still lagging, through the scheme. In a bid to provide houses, roads, electricity and education to such families, officers are reaching out to them. Such efforts are part of my commitment to ‘Vikshit Jharkhand’. We will fulfil the dreams of Jharkhand,” he said. The prime minister underlined that many significant steps have been taken to empower the poor, Dalit, deprived and tribal families of the country since 2014. He said the PM-Janman Yojana is being run for the tribal community across the country, including Jharkhand. Modi also tendered an apology to the people of Jharkhand as he could not be present at the venue due to poor weather conditions, restricting his helicopter’s movement and compelling him to inaugurate and lay the foundation stones for the projects via video conferencing. The prime minister is on a three-day visit to Jharkhand, Gujarat and Odisha, beginning Sunday, where he is scheduled to lay the foundation stones and launch projects worth more than Rs 12,460 crore. Source : Economic Times INDIA

Construction to Resume on Unitech Project After Bhoomi Puja Ceremony

9/16/2024 12:48:00 PM

The Unitech board appointed by the Supreme Court has decided to resume construction work on stuck housing projects in Noida, igniting hope among the homebuyers who have been waiting for the delivery of their apartments for more than a decade. The Unitech management on Thursday said that a groundbreaking (Bhoomi Poojan) ceremony will take place at the Unitech Golf and Country Club in Sectors 96, 97, and 98 on Sunday, paving way for the completion of these projects. The move comes after the Noida authority approved the revised building maps in June – weeks after the Supreme Court ruled that the revised building maps should be approved without asking the board to pay the land cost dues. Realty firm Unitech had planned a residential project in a large parcel of land called Unitech Golf and Country Club (UGCC) in 2006-07 under which three sets of residential developments were planned. Of these three, two were luxury group housing towers – Amber and Burgundy – and one was a bungalows project called Willows 1 and 2. The Noida authority, in accordance with the Supreme Court order, has so far approved revised maps only for housing towers, which are partially built, and not the revised maps for the plots. The tower projects entail 818 apartments on 164 acres of area in Sectors 96, 97 and 98, located along the Noida-Greater Noida Expressway, with 180 to remain vacant. At least 638 apartment buyers are waiting for delivery of their apartments in these two projects. The remaining 180 apartments will be sold in the future. The authority, in June 2006, allotted 344 acres prime land to Unitech, and the lease deed in order to transfer the property title was executed in December in the same year. A total of 5,586 homebuyers are waiting for possession in all three sites under UGCC. Unitech failed to complete the projects because it did not have adequate funds to pay the Noida authority land-cost dues of around ₹11,000 crore and was also unable to arrange funds to build the projects. The Enforcement Directorate (ED) and other agencies are still probing the diversion of funds done by the promoters of Unitech, according to authority officials. The back story Unitech had launched projects at three different sites in Noida. The first, named UGCC, is spread across plots in sectors 96, 97 and 98 along the Noida-Greater Noida Expressway. The second, named Unihomes 3, is in Sector 113 and along the Faridabad-Noida-Ghaziabad Expressway with 1,621 homebuyers. The third, consisting of Exquisite, The Residences, Unihomes 1 and 2, Uniworld and Gardens, is in Sector 117, with 3,327 homebuyers. The Unitech board said that a groundbreaking ceremony for the Sector 113 project is likely to take place in October this year. In the revised map, Amber has seven towers with 422 apartments, Burgundy has seven towers with 395 apartments. The new map for Willows has 397 plots for bungalows, but this is pending with the authorities, Unitech said. “We bought a flat in 2007 with the assurance of possession in 2012 in Unitech’s Amber project. But even after 13 years we have not got our apartment. Now after the SC order and the Unitech board in place, we hope that our apartments will be delivered in the next two years. We have suffered long enough and now it is time to get justice,” said Sanjeev Sood, president of the buyers' association in Amber project of Unitech. Following the Supreme Court order on April 26, 2024 the authority approved the revised maps on May 30, and released drawings on June 25, allowing construction to resume at the site. The Supreme Court order divided the total Unitech land into two parts – one where homebuyers were allotted flats and plots, and the other where projects were yet to be launched – and specified that the focus should first be on completing partially built apartment towers. “After we got the revised maps approved from the Noida authority, we waited for the environmental clearances from the requisite authorities in the state and centre. We have decided to organize bhoomi poojan on Sunday to resume the construction at the site only after we got all requisite approvals including EC in place. We have already finalized the contractors who will be engaged in the construction. We will make sure the construction is completed even before the timelines mentioned in the contractual agreements,” said YS Malik, former IAS officer who is the chairman of the board constituted by the Supreme Court. The board was appointed in 2020 to replace the promoters from their positions and take control of the company from them after they failed to deliver the projects. Until earlier this year, the Noida authority had refused to approve the revised map layouts until the realtor cleared its dues amounting to nearly ₹11,000 crore, said officials in the know of the matter. “We have approved the layout of incomplete housing projects in Noida on the orders of the Supreme Court, paving the way for the construction at the site,” said Lokesh M, chief executive officer, Noida authority. Source : Hindustan Times INDIA

DDA Extends Call Centre Hours For Housing Queries

9/14/2024 12:34:00 PM

Intending to address public queries effectively and uninterruptedly on Delhi Development Authority(DDA)Housing Schemes,2024, Delhi Lt Governor V K Saxena has directed it to keep its call centre open this Sunday and Monday. Normally, DDA’s call centre having number 1800110332 operates from Monday to Saturday (10 AM -6 PM) and remains close on Sunday and gazetted holidays. The opening of Call Centre will provide necessary assistance to the buyers, as calls volume have increased three to four times, DDA official said on Friday. Giving details, they said, the booking of DDA’s Sasta Ghar Scheme and Madhyam Vargiya Scheme started on September 10 and it has received impressive response from the buyers, with over 1,400 flats sold in just three days. Moreover, the flats in Jasola have been completely sold out and there is good demand for flats in Narela, Rohini, Ramgarh and Siraspur. Besides, as part of DDA’s commitment to hand over demand letters within 24 hours, all buyers have been provided demand letters. The scheme continues to generate interest of the buyers and prospective buyers can log on to DDA’s website www.dda.gov.in to book the flat. Besides, the last date for EMD submission for Dwarka Housing Scheme is September 17 and there are a number of queries from the prospective buyers for the MIG, HIG, Super HIG flats and Penthouse in Dwarka. The demand for flats in Narela has also been encouraging, as the Lt Governor has placed significant impetus on civic infrastructure, with many projects in the pipeline. The upcoming Education Hub with all university campuses, proposed International Sports Complex, institutions, court complex, policing and enhanced connectivity, have played a catalytic role in making Narela a preferred choice of buyers. Apart from these, the approval from the Ministry of Finance, Government of India, for the Rithala–Narela–Kundli corridor of the Delhi Metro has also enhanced its locational advantage. Besides, DDA’s pre and post sale services have also contributed to the sale seamless information to buyers and handing over all property related and ownership documents to the buyers helped generate customer confidence and trust towards DDA. Source : Business Standard INDIA

Arkade Developers Raises Funds for IPO

9/14/2024 12:34:00 PM

Realty firm Arkade Developers Ltd has raised Rs 122.40 crore from anchor investors ahead of its initial public offering. On Tuesday, the company had fixed a price band of Rs 121-128 per share for its Rs 410- crore initial public offering. The initial share sale will open for public subscription on September 16 and conclude on September 19. According to a regulatory filing, the company has issued 95,62,500 shares to anchor investors at Rs 128 per share, aggregating to Rs 122.40 crore. These investors include BNP Paribas Financial Markets -- ODI, Societe Generale-ODI and Saint Capital Fund. The IPO is entirely a fresh issue of equity shares worth Rs 410 crore with no offer-for- sale (OFS) component. Proceeds from the issue will be used for development of the company's ongoing as well as upcoming projects, funding acquisition of future real estate projects and general corporate purposes. Arkade Developers is a fast-growing real estate development company with a significant presence in Mumbai. As of July 31, 2023, it has developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds the majority stake. Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region (MMR) in Maharashtra. Arkade Developers' revenue in fiscals 2023, 2022 and 2021 stood at Rs 224.01 crore, Rs 237.18 crore and Rs 113.18 crore, respectively. The company said that half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 110 shares and in multiples thereof. Source : Economic Times INDIA

Punjab and Haryana HC No Ban on Stilt-Plus-Four Floor Construction, Awaits Government Decision

9/12/2024 12:54:00 PM

Gurgaon: The Punjab and Haryana high court on Wednesday clarified that it had not stayed construction of stilt-plus-four floors, but the state govt said the policy was still on hold as a final decision on it was pending. HC had sought the Haryana govt's response after a realtor filed a petition claiming a stay had been imposed on the stilt-plus-four-floor policy (S+4) policy in the city. The bench of justices Arun Palli and Vikram Aggarwal said it was up to the department of town and country planning (DTCP) to decide if it wanted to implement the policy. Additional advocate general Ankur Mittal, representing the govt, also admitted during the hearing that DTCP had put the S+4 policy on hold and the court had never imposed any ban on its implementation. The plea by realtors was filed as the two-judge bench has been hearing a petition by the Gurgaon Citizens Council, which had sought a stay on govt's policy allowing S+4 construction in the NCR city. In Feb 2023, DTCP had suspended the implementation of this policy and formed an expert committee that was supposed to recommend if S+4 construction should be allowed in Gurgaon. Despite this order, on July 2 this year, the department released guidelines for S+4 construction, prompting GCC to question before the high court on how the rules could be framed if the policy was on hold. The SOPs allowed S+4 construction in colonies where the layout plan permitted three floors with stilt parking and 10-metre-wide roads. DTCP also listed standards for issuing occupation certificates (OCs) for buildings where additional floors were constructed without permissions. It proposed creating a portal for transparent and quick approval of such building plans. Separately, developers have filed another petition before the HC to become parties in the case. The court has issued a notice to GCC seeking a response. The high court will take up the case next on Oct 23. As uncertainty persists about the policy's implementation, realtors said that HC's clarification gives them an indication that DTCP could come up with a revised set of norms. "There is no court order preventing construction of stilt-plus-four floors in residential areas. New directives could soon be issued by the department," Narendra Yadav, president of the Gurugram Home Developers Association, said. Source : The Times of India INDIA

Bajaj Housing Finance IPO: Oversubscribed 63.60 Times by Day 3

9/12/2024 12:53:00 PM

NEW DELHI: Bajaj Housing Finance Ltd's Rs 6, 560 crore initial public offer (IPO) was subscribed 63.60 times on Day 3. The issue received bids for 46,27,48,43,832 shares, against the 72,75,75,756 shares on offer, acoording to NSE data. The Qualified Institutional Buyers (QIBs) category witnessed a massive 209.36 times subscription, while the non-institutional investors' portion was subscribed 41.50 times. Retail Individual Investors (RIIs) subscribed 7.02 times. The IPO, which opened for bidding on Monday, was fully subscribed within hours and closed the day with a 2 times subscription. Prior to the opening, Bajaj Housing Finance had already raised Rs 1,758 crore from anchor investors on Friday. The IPO consists of a fresh issue of equity shares worth up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares amounting to Rs 3,000 crore by the parent company, Bajaj Finance. The price band for the offer has been set at Rs 66-70 per share. The listing of Bajaj Housing Finance is in compliance with the Reserve Bank of India's (RBI) regulations, which mandate upper-layer non-banking finance companies to be listed on stock exchanges by September 2025. The proceeds from the fresh issue will be utilized to strengthen the company's capital base and meet future capital requirements. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank in September 2015, offers financial solutions for purchasing and renovating residential and commercial properties. The company has been classified as an "upper layer" NBFC by the RBI and provides comprehensive mortgage products, including home loans, loans against property, lease rental discounting, and developer financing. The IPO is being managed by a consortium of book-running lead managers, including Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, Axis Capital, and JM Financial Ltd. The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world. Source : The Times of India INDIA

Bank of Baroda Gives Green Light to Supertech’s Dehradun Project

9/12/2024 12:51:00 PM

Bank of Baroda, one of the lender in Supertech Group has approved and sanctioned the resolution plan for company’s Dehradun project paving way for delivery of over 600 homebuyers. The company had submitted a project-wise resolution plan in National Company Law Appellate Tribunal (NCLAT) and this is the first project which has got approval from the lender. Bank of Baroda has also given its consent for the inclusion of co-developer in the project. “We have tied up with a local developer to resume the stalled project. We will now seek further approvals from other lenders for other projects. Our aim is to secure approval for each project one by one. The bank has not shown interest in NBCC’s proposal of taking over the project and instead allowed us to resolve it,” said RK Arora, chairman of Supertech group. Recently, Kotak Investment Advisors Ltd (KIAL) has agreed to invest Rs 450 crore in Supertech’s stalled mixed-use project in Noida, offering a major financial lifeline to the cash-strapped realty developer. The 5 million sq ft ‘Supernova’ project in Sector 94 is currently 50% completed and it includes the tallest residential tower in the NCR region. On completion, the project has a revenue potential of more than Rs 7,000 crore, according to the proposal of Supertech to the Noida authority. The revival of Supernova is expected to help Supertech resume its other projects which have been delayed for several years. The Noida-headquartered property developer has to deliver over 15,000 homes. Supertech’s total liabilities including dues to banks and development authority total about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects' net worth positive. The company has already submitted a proposal to the Uttar Pradesh government for its revival. It is in the process of selling some land parcels to give exits to lenders and use the remaining funds to expedite construction on stalled projects. Source : The Economic Time INDIA

Bajaj Housing Finance IPO: Issue Subscribed 7.50 Times on Day 2

9/11/2024 1:14:00 PM

Bajaj Housing Finance IPO GMP soars: The unlisted shares of Bajaj Housing Finance continue to maintain a robust grey market premium on the final day of its IPO bidding, underscoring strong investor appetite. The shares are trading at a premium of Rs 70, a 100 per cent premium over the IPO's upper price band of Rs 70, as per sources tracking grey market activities. Moreover, today's grey market premium has risen by Rs 7, from Rs 64 on Monday, September 9, 2024, when the IPO subscription opened, indicating sustained momentum. The Bajaj Housing Finance IPO, which ends today, has so far received an overwhelming response from investors, with the public issue being subscribed 7.50 times by the second day of subscription. According to NSE data, the public issue of Bajaj Housing Finance received bids for 5,45,85,77,822 shares against 72,75,75,756 shares offered. Non-Institutional Investors (NIIs) bid the highest at 16.45 times for the Bajaj Housing Finance IPO, followed by Qualified Institutional Buyers (QIBs) at 7.46 times and Retail Individual Investors (RIIs) at 3.83 times. Meanwhile, the quota reserved for shareholders received 9.54 times subscription by Tuesday, September 10, 2024. The public issue of Bajaj Housing Finance arm has received positive reviews from several noted brokerages, including Deven Chokshi Research, InCred Equities, Motilal Oswal, and Swastika Investmart. At the upper end, Bajaj Housing Finance seeks to raise Rs 6,560 crore from the issue, offering a fresh issue of 937,142,858 shares worth around Rs 6,560 crore, as well as an offer for sale of up to 508,571,429 shares of the company with a face value of Rs 10 apiece. The Bajaj Housing Finance IPO is available at a price band of Rs 66-70 with a lot size of 214 shares. Accordingly, investors can bid for a minimum of 214 shares and in multiples thereof. KFin Technologies is the registrar for the Bajaj Housing Finance IPO, while Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book-running lead managers of the public issue. Following the closure of the subscription window, the allotment of Bajaj Housing Finance IPO shares is likely to be finalised on Thursday, September 12, 2024, and the company's shares will be credited to demat accounts on Friday, September 13, 2024. Bajaj Housing Finance Bajaj Housing Finance Ltd (BHFL), formerly known as Bajaj Financial Solutions Ltd, was incorporated as a subsidiary of Bajaj Finserv Ltd (BFS) on June 13, 2008. The company was acquired by Bajaj Finance Ltd (BFL) as a wholly-owned subsidiary from Bajaj Finserv on November 1, 2014, with the intent to conduct housing finance business through a dedicated subsidiary. The company's name was changed to Bajaj Housing Finance on November 14, 2014. Source : Business Standard INDIA

Upon 1,100 Flats of DDA Two Housing Schemes Vend on First Day

9/11/2024 1:13:00 PM

New Delhi: Delhi Development Authority has said that it has got an impressive response on the first day of booking of flats under two housing schemes — Sasta Ghar and Madhyam Vargiya Housing. The authority said it booked over 1,100 flats in the first four hours of the booking process on Tuesday. Over 450 flats were booked in Rohini, 100 in Ramgarh colony and all 41 flats in Jasola. Besides, over 350 flats were booked in Narela, including LIG and EWS units. Under the Dwarka Housing Scheme, DDA offered 173 MIG, HIG and higher category flats in Sector 14, 16B and 19B. Till Tuesday DDA received 1,910 registrations. "The lieutenant governor has been monitoring the schemes and has placed significant impetus on civic infrastructure. The upcoming education hub with university campuses, proposed international sports complex, institutions, court complex, policing and enhanced connectivity, have played a catalytic role in making Narela a preferred choice for buyers. The approval from the ministry of finance for the Rithala–Narela–Kundli corridor of Delhi Metro has enhanced its locational advantage," an official said. A professional marketing strategy adopted by DDA also helped the sale. "Single window enquiries on the website, seamless information to buyers, and handing over of ownership documents to the buyer helped generate customer confidence and trust," an official said. Under the Sasta Ghar Housing scheme, 34,000 flats are planned to be offered and in phase I and 8,000 flats are open for registration. In the General Housing Scheme, 5,400 flats (including MIG, HIG, LIG and EWS units) are on offer. "While the registration will continue, to handle queries efficiently, including aiding in the registration process, the authority has established a registration helpdesk at its head office, Vikas Sadan. A helpline number (1800110332) will work from 10 am and 6 pm from Monday to Saturday. People can log on to www.dda.gov.for more information," said an official. Source : The Times of India INDIA

Noida Authority Require UP Govt to Review Relief Granted To ET Infra Developers

9/11/2024 1:12:00 PM

Noida: Noida Authority will urge UP govt to reconsider a decision to grant a financial relief of Rs 63 crore to ET Infra Developers Pvt Ltd, the builders of World Trade Tower in Sector 16. The relief was granted to compensate for delays caused by a National Green Tribunal (NGT) ban on constructions within 10km of Okhla Bird Sanctuary between 2013 and 2015. Authority officials pointed out that the developer had completed the towers before the NGT orders were imposed, but failed to secure an occupancy certificate because of lack of documents. This, they argued, makes the company ineligible for the waiver as the NGT ban had no effect on the project. It was in March 2010 that Electrotherm Infra Developers (Consortium) was allotted commercial land in Sector 16 for the World Trade Tower project. The company was supposed to finish the project in three years and apply for an occupancy certificate by Aug 2, 2013. The builder, which had already deposited Rs 48 crore, applied for the certificate on June 5, 2013, but failed to submit proper documents. On July 9 that year, the Authority's Building Cell rejected the application, citing Building Regulations, 2010. The NGT ban was imposed only on Aug 14, 2013 within 10km of the bird sanctuary. NGT tightened the restrictions in Oct 2013, asking the Authority to stop issuing OCs to projects without environmental clearance. The developer requested the Authority to extend its payment instalments by two years and waive interest from Sept 2013 onwards, in keeping with NGT's orders. The plea was rejected. ET Infra made further appeals, requesting "zero period" waivers for a period starting July 9, 2013. The developer argued that despite completing the tower much before the ban, they failed to get the OC because of NGT's orders. The Authority, eventually, allowed partial relief between Aug 14 and Oct 28, 2013. In Aug 2015, the ban was lifted, with the Centre reducing the eco-sensitive zone around the sanctuary to 100 metres. But the developer approached Allahabad high court, seeking full waiver for a two-year period from Aug 2013. In 2017, the HC asked the Authority to address the company's grievances in four weeks. The Authority, however, granted a limited zero-period benefit and only waived penal interest from Oct 29, 2013 to Aug 19, 2015. On Aug 24, 2023, the developer sought a review of the waiver under the Uttar Pradesh Urban Planning and Development Act, 1973. The state govt reviewed the case and allowed a full waiver of interest and lease rent, amounting to Rs 63 crore, for the period between Aug 2013 and Aug 2015. The Authority, however, contested the decision. During its previous board meeting, officials argued that the delay in getting the OC had nothing to do with the ban but was because of the developer's own faults. They also pointed out that ET Infra had already received partial waivers for the affected period and had cleared all outstanding dues by Nov 2022. "This additional relief would set an unfair precedent and impose a significant financial burden on us," an official said. Source : The Times of India INDIA

Loan Case : Delhi HC Grants Bail to Former Directer of DHFL

9/10/2024 12:34:00 PM

The Delhi High Court on Monday granted bail to Dheeraj Wadhwan on medical grounds in a CBI case. He is accused in a multi-crore bank fraud case. Justice Sudhir Kumar Jain granted bail to Dheeraj Wadhawan after hearing the bail application. Justice Jain said, "Petitioner falls under the category of sick person." The trial court order is set aside, he added. On June 5, the Delhi High Court sought a status report on the bail plea, which he sought on medical grounds. His bail plea was dismissed by the trial court. The vacation bench of Justice Vikas Mahajan had directed the CBI to file a status report. Senior advocate Amit Desai had appeared through video conferencing and senior advocate Siddharth Agrawal appeared physically. Advocate Anupam S Sharma appeared for CBI and opposed the bail application. His earlier bail plea was withdrawn from Delhi High Court on May 17. He had moved his bail plea after his arrest in the DHFL Bank loan case. His bail plea has been dismissed twice by the trial court. The Rouse Avenue court's Special Judge A K Sarpal on May 10 dismissed his bail application on the grounds of maintainability. The court had also directed the CBI to arrest him after May 11 and to produce him before the CBI court as per the direction of the Supreme Court passed on January 24. While rejecting the bail application, the CBI Court at Rouse Avenue said that the accused is at liberty to move a fresh bail application for bail after he is arrested and comes into the custody of this court. At that time, his request for a grant of interim bail on medical grounds or regular bail, if moved, will be considered. However, the bail application was dismissed by the court following his arrest. The trial court also said that at this stage, the first order of the Supreme Court of January 24, 2024, has to be complied with for taking the accused into physical custody. Earlier, he was granted protection by the Bombay High Court till May 11 on medical grounds. He was hospitalised and underwent surgery. He was receiving treatment at his home after discharge from the hospital before his arrest. The Supreme Court on January 24 set aside a Delhi High Court order granting statutory bail to former Dewan Housing Finance Ltd. (DHFL) promoters Kapil Wadhawan and his brother Dheeraj Wadhawan in connection with a multi-crore rupee bank loan scam case. The apex court had cancelled the bail granted to the Wadhawan brothers. It said the High Court and trial court had erred in providing default bail to the Wadhawans. "We have no hesitation that the chargesheet having been filed and cognisance being taken in due time, respondents could not have claimed statutory bail as a right. The high court and lower court greatly erred. Trial court to hear afresh on regular bail. Appeals allowed accordingly," the bench said while pronouncing the order. The top court had set aside the findings of the High Court and the trial court, saying the Wadhawan brothers cannot claim the statutory right of default bail on the ground that the investigation is pending against other accused. In this case, CBI had filed the chargesheet on the 88th day after registration of the FIR and the trial court granted default bail to them and the Delhi High Court upheld the order. The charge sheet was filed on October 15, 2022, and cognisance was taken. The trial court had granted bail to them, noting that the charge sheet filed by the CBI is incomplete. On July 19, 2023, they were arrested in this case. The FIR in the case was based on a complaint made by the Union Bank of India. Source : Business Standard INDIA

Bajaj Housing Finance IPO Acheives Full Subscription on Day 1

9/10/2024 12:29:00 PM

Bajaj Housing Finance IPO subscription status: The initial public offering (IPO) of the much- awaited Bajaj Housing Finance received an overwhelming response from investors on the first day of its opening, with investors bidding for 1,46,58,24,030 shares against 72,75,75,756 shares offered by the company. Thus, the issue got subscribed 2.01 times by the end of the first day of subscription, as per NSE data. This was led by Non-Institutional Investors (NIIs) who bid 4.35 times for the Bajaj Housing Finance IPO, followed by Retail Individual Investors (RIIs) at 1.50 times and Qualified Institutional Buyers (QIBs) at 1.07 times by the end of Monday, September 9, 2024. Meanwhile, the quota reserved for shareholders witnessed 2.90 times subscription. The public issue is available at a price band of Rs 66-70 and a lot size of 214 shares for investors. Thus, investors can bid for a minimum of 214 shares and in multiples thereof. Accordingly, the minimum amount required by a retail investor to bid for the Bajaj Housing Finance IPO is Rs 14,980. Bajaj Housing Finance also garnered broadly positive reviews from brokerages, including Deven Chokshi Research, InCred Equities, Motilal Oswal, and Swastika Investmart, for the public issue. READ MORE Meanwhile, the unlisted shares of Bajaj Housing Finance continue to trade at a strong premium in the grey market on Tuesday. As per sources that track grey market activities, shares of Bajaj Housing Finance were quoted trading at a grey market premium of Rs 64 or 91.43 per cent. This suggests a positive market sentiment for the Bajaj Housing Finance IPO. The three-day subscription window to bid for the Bajaj Housing Finance IPO closes on Wednesday, September 11, 2024. Following this, the basis of allotment of Bajaj Housing Finance shares is expected to be finalised on Thursday, September 12, 2024, and subsequently, the company's shares will be credited into demat accounts on Friday, September 13, 2024. Bajaj Housing Finance shares are expected to make their debut on the bourses on Monday, September 16, 2024. Bajaj Housing Finance shares will be listed on the BSE and NSE. For the Bajaj Housing Finance IPO, KFin Technologies is the registrar, while Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book-running lead managers. Source : Business Standard INDIA

Haryana RERA to Review Developer Consent for Project Changes

9/10/2024 12:21:00 PM

The Real Estate Regulatory Authority (Rera) in the city has decided to check "to the extent possible" the veracity of two-thirds consent of allottees that real estate promoters submit in case they want any change in their layouts or a revision of their building plans. The decision was taken at a meeting of Rera officials on Monday. The Real Estate (Regulation and Development) Act of 2016 mandates changes or revisions — as the case may be — to layouts or building plans provided two-thirds of the allottees say yes to it. According to Section 14 of the Haryana Rera Act, "the promoter shall not make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be, which are agreed to be taken, without the previous consent of that person: provided that the promoter may make such minor additions or alterations as may be required by the allottee, or such minor change or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by an authorised architect or engineer after proper declaration and intimation to the allottee." Section 14 (2)(II) of the Act also says that the "promoter shall not make any other alterations or additions in the sanctioned plans, layout plans and specifications or the buildings or the common areas within the project without the previous written consent of at least two-thirds of the allottees, other than the promoter". Before allowing the alterations, the authority usually issues a public notice inviting objections. In case there are no objections, it allows the changes. In case some objections are received, the case is decided on merit. "As a matter of abundant caution, the real estate authority will from now on get the consent checked to the extent possible. The idea behind this effort is to protect the sanctity of allottees' rights under the Rera Act," a senior official said. Advocate Harshit Batra, who deals in cases related to properties, backed the Rera move. "This will not only save the parties from any future litigation involving the approval of revised plans but will also help in the smooth implementation of revised development." Source : The Times of India INDIA

NBCC Offers Three-Phase Plan to Complete 50K Supertech Flats in NCR

9/9/2024 12:35:00 PM

NEW DELHI: Providing a confidence boost to several thousand homebuyers, state-run NBCC has proposed a three-phase construction plan spread over three years to complete all the 50,000 apartments spanning across 17 project of Supertech Ltd, which is being run by an insolvency professional and whose promoter is facing multiple charges including fund diversion and money laundering. The public sector construction company has sought the National Company Law Appellate Tribunal's (NCLAT) permission to enter as a project management consultant, a task it is performing at Amrapali. NBCC has estimated the cost of completing all the projects at close to Rs 9,500 crore and the receivables are pegged at Rs 16,000 crore, including Rs 14,000 crore that can be generated from unsold inventory of 10,000 apartments. The insolvency resolution professional had estimated the construction cost at Rs 6,406 crore. "Tentative time period for completion of various projects shall vary from 12 to 36 months from ‘Day Zero'," it has proposed. Day zero includes everything from access to land to receipt of approvals and availability of funds. Underlining the availability of funds as a key, NBCC has sought an "unencumbered designated project account", where an initial Rs 100 crore will be required. Besides, it has sought the support of local authorities and from Supertech as well as homebuyers. NBCC proposes to charge a fee of 8% on the actual cost of work and 1% marketing fees. While around half the apartments, around 13,000 have been delivered in the seven projects that are proposed to be taken up in the first phase, the possession level in the second and third phases is seen to be lower. NBCC has proposed the establishment of a committee appointed by NCLAT, comprising its representatives, along with those from banks and construction industry and the insolvency professional to decide on project execution, collection of money from homebuyers, offloading unsold inventory and payment of dues to lenders. It has also sought flexibility in execution of projects and has proposed to undertake structural stability analysis once it is appointed PMC. Several homebuyers are backing NBCC's bid given that it is a PSU and has made significant headway in delivering apartments to Amrapali homebuyers, who were similarly stranded. Homebuyers, almost all from the middle class, are worried over the fate of their apartments given that Supertech promoter and suspended director Ram Kishor Arora is facing multiple charges after Union Bank initiated insolvency action. Source : The Economic Time INDIA

Arakade Developers Rs 410 Crore IPO Set to Open on September 16

9/9/2024 12:33:00 PM

Real estate developer Arkade Developers Ltd is set to float its Rs 410-crore initial public offering (IPO) on September 16. The initial share sale will conclude on September 19, and the bidding for anchor investors will open for a day on September 13, according to the red herring prospectus (RHP). The maiden public issue is entirely through a fresh issue of equity shares worth Rs 410 crore with no offer-for-sale (OFS) component. The company has already raised Rs 20 crore through a pre-IPO placement round. Proceeds from the issue will be used for the development of the company's ongoing as well as upcoming projects and funding the acquisition of future real estate projects and general corporate purposes. Arkade Developers is a fast-growing real estate development company with a significant presence in Mumbai. As of July 31, 2023, it has developed 1.80 million square feet of residential property, including through partnership entities in which Arkade holds the majority stake. Between 2017 and Q1 2023, the company launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region (MMR) in Maharashtra. Arkade Developer's revenue in fiscal 2023, 2022 and 2021 stood at Rs 224.01 crore, Rs 237.18 crore and Rs 113.18 crore, respectively. Unistone Capital is the sole book-running lead manager (BRLM) to the issue. The equity shares of the company will be listed on BSE and NSE. Source : Standard Business INDIA

ED Attaches Rs 78 Crore Worth of Properties Linked to Gautam Thapar in Bank Loan Fraud Case

9/9/2024 12:30:00 PM

"Directorate of Enforcement (ED) has provisionally attached 24 immovable properties spanning 52.11 acres of land valued at Rs 78.18 crore belonging to M/s Oyester Buildwell Private Limited, a company whose beneficial owner is Gautam Thapar. The properties so attached are located in Gurugram, Haryana," as per an official press release. ED initiated investigation on the basis of an FIR registered by Central Bureau of Investigation (CBI) under various sections of IPC, 1860 against M/s Oyster Buildwell Pvt. Ltd., M/s Avantha Realty Ltd., Gautam Thapar and others having committed criminal breach of trust, cheating, criminal conspiracy and forgery for diversion/misappropriation of the public money during the period from 2017 to 2019 and causing loss to the tune of Rs 466.51 crore to YES Bank, ED stated in the release. "ED investigation revealed that M/s Oyster Buildwell Pvt Ltd. obtained a loan of Rs 514.27 crore in the year 2018 from Yes Bank Ltd. on the basis of sham O&M agreements. Out of this loan amount, an amount of Rs 14.11 crore was retained by Yes Bank as loan processing charges and the balance amount of Rs 500.11 crore was thereafter transferred by M/s OBPL to its sister concerns in guise of sham O&M agreements," as per the release. Since the said loan was given under dubious circumstances, it eventually became a non-performing asset (NPA) for the bank, and only an amount of Rs 47.75 crore could be recovered from the loan of Rs 500.11 crore and POC to the tune of Rs 466.51 crore remained unrecoverable, the ED stated. As per ED, the Prosecution Complaint against 18 individuals, including Gautam Thapar and Rana Kapoor, has already been filed in the Hon'ble Special Court (PMLA), New Delhi in this case. Gautam Thapar was arrested by ED in this case, and currently he is out on bail on health grounds, it said. Further investigations are under progress. Source : Business Line INDIA

Noida to Seal, Auction Unsold Flats in Three Project Over Unpaid Dues

9/7/2024 12:37:00 PM

The Noida authority has decided to seal, attach and auction unsold flats of defaulter builders and took possession of vacant unused land of three projects -- the Grand Omaxe (Omaxe Buildhome) in Sector 93B, Antriksh Golf View (Colourful Estate) in Sector 78, and Matrott (Skytech Constructions) in Sector 76 -- in an attempt to recover dues and deliver justice to thousands of homebuyers, who have been suffering for the past many years. The decision to attach and seal the unsold inventory in housing projects came on Wednesday during a meeting chaired by Noida authority chief executive officer Lokesh M, who directed the group housing department to launch a crackdown against defaulter realtors. “We have directed the group housing and finance departments to attach and take back unused plots from the defaulter realtors in order to realise our revenue and also pave the way for addressing homebuyers’ grievances. Our teams will check the inventory that has got no third party rights on it, and then the attachment and seizure will take place,” said Lokesh M. The move comes after promoters failed to deposit 25% of the recalculated dues under the state’s policy meant for stalled housing projects that came on December 21, 2023. The authority has given a week’s ultimatum to the developers of 12 similar projects to deposit 25% of their dues or face legal action in the form of complaints filed with the economic offences wing (EOW). The developers of these projects have failed to pay the required amount, officials said, adding that some of them have paid only a fraction of the necessary deposit. The projects in question are Aims Max Gardenia, Omaxe Buildhome, Colourful Estates, Prateek Buildtech, Prateek Realtors, Sunworld Residency, Sunshine Infrawell, Antriksh Developers & Promoters, Perfect Propbuild, Mahagun Real Estates, Imperial Housing Ventures, Assotech Ltd, Assotech Contracts, Skytech Constructions and AVP Buildtech. Of the 56 builder projects covered by the government order issued in December 2023, which addresses legacy stalled real estate projects, 22 builders have deposited 25% of the total assessed dues, amounting to ₹275.72 crore, after availing of concessions. The dues for six builders have been nullified after recalculation, said officials. A total of 2,558 flat buyers across these 28 projects have been granted permission for registry, with 1,298 registrations completed and 1,260 pending. On Tuesday, the authority announced that it will write to the EOW against non-compliant builders who have failed to pay necessary dues. There are 28 projects whose developers have not taken advantage of the rehabilitation package, and owe the authority nearly ₹6,900 crore. Over 12,700 flats remain unregistered in these projects, said officials. “If the EOW probe will establish proof that realtors diverted funds or misused it, then enforcement directorate will probe the matter. The realtors who are willingly defaulting will face action,” said Vandana Tripathi, additional CEO, Noida authority. The Confederation of Real Estate Developers Association of India (CREDAI, a builder’s group, has also asked realtors to clear the dues. “The CREDAI has urged the developers to obey to the authority directive because it will benefit not only them, but also homebuyers, who have already suffered enough,” said Dinesh Gupta, secretary, CREDAI, western UP chapter. Source : The Economic Time INDIA

Noida Authority Acts to Resolve Dues,Aim for a Stronger Grand Omaxe Society

9/7/2024 12:13:00 PM

Noida authority sealed Omaxe Buildhome's land for failing to clear ₹457.81 crore dues, affecting 500 apartment owners unable to register properties. The Noida authority on Friday sealed a 9,262.625 square metre land parcel of Omaxe Buildhome Private Limited for failing to clear ₹457.81 crore dues despite repeated notices. The move comes after the realtor failed to pay at least 25% ( ₹114.45 cr) of the total land cost dues and obtain permission for registry of apartments in the name of the homebuyers. Under the state government policy launched on December 21, 2023, the authority is offering waivers on interest to stuck housing projects for the period of the Covid pandemic. “We have sealed the unused land parcel of Omaxe Buildhome after the realtor failed to make use of the policy… under which we offer waivers so that the dues can be cleared easily. But despite the relief given in the policy the Omaxe Group is not coming forward to pay the dues and obtain permission for the registry. Therefore, the authority has acted against the realtor. And the action against other defaulter realtors will continue,” said Vandana Tripathi, additional chief executive officer, of Greater Noida authority. The authority had on October 3, 2006 allotted the housing land in sector 93B for developing a housing project, located along Noida- Greater Noida Expressway. Subsequently, the authority had on December 29, 2006 executed the registry of the plot, and also gave possession of this prime land on which a luxury housing project was developed by the realtor. To be sure, the authority needs to recover ₹457.81 crore land cost dues that remained unpaid till December 31, 2023. The authority in January, 2024 through a notice directed Omaxe to pay the 25% of the dues. Around 500 owners of apartments in Grand Omaxe have been suffering for six years and are still not able to transfer the property title to their names. "Most of these apartment owners had purchased stamp fee 10 years ago. Some of them gave the stamp fee money to the builder itself. But even a decade later, these apartment owners are not being able to register there,” said PVS Prakash, a resident of Grand Omaxe and former apartment owners association president. The promoter of Grand Omaxe was not available for comment. Around 500 residents of Grand Omaxe housing complex in Sector 93B are yet to receive their property title despite paying the total flat cost as the Noida authority will allow registry of these flats only after the builder deposits dues. Residents asked why they should suffer for the builders’ fault even after paying the total cost on time. The Omaxe Buildhome private limited has developed around 1,500 apartments in this project named Grand Omaxe and residents are living in this project. Source: The Times Of India INDIA

Fresh Hope For Lavasa as NCLT Orders Restart of Insolvency Process

9/7/2024 12:05:00 PM

I Implementation of the resolution plan approved by NCLT, Union Bank of India, a secured creditor, and on behalf of the secured financial creditors of Lavasa also filed an IA. Union Bank submitted that due to the non-infusion of funds, the lender banks were forced and constrained (to maintain the CD) to infuse money into Lavasa. Accordingly, in the meeting, 62.73% of the lender banks agreed that the performance bank guarantee (PBG) submitted by DPIL should be invoked and encashed. Subsequently, ARCIL also indicated their approval for the invocation of the PBG of Rs25 crore, so there was a consensus of 73.65% of the lender banks in favour of the invocation of PBG. The NCLT bench observed that Darwin Platform not only failed to make the upfront payment as required under the approved resolution plan but also failed to take any real steps even after the dismissal of appeals by the National Company Law Appellate Tribunal (NCLAT) on 10 January 2024 while hearing an appeal filed by Union Bank and on 13 February 2024 while hearing the appeal filed by State Bank of India (SBI). "The PBG was invoked by Union Bank on 8 April 2024, i.e., many days after the rejection of the appeals. This clearly demonstrates that the Darwin Platform was never ready to implement the plan and was only making excuses to somehow save the PBG amount. In the light of the discussion, we have no hesitation in holding that Darwin Platform has starkly contributed to the failure of implementation of the approved resolution plan in accordance with the terms of the approved resolution plan. Consequently, Union Bank has rightly invoked and encashed the PBG furnished for by Darwin Platform, and the proceeds thereof can be used for the purposes as decided by CoC," NCLT says. As per the approved resolution plan, Darwin Platform was required to make an upfront payment of Rs100 crore within 90 days from the effective date, the date of approval of the resolution plan, and receipt of a copy of the order and a payment of the further amount of Rs50 crore within nine months from the effective date. A group of more than 500 homebuyers in Lavasa had filed an appeal alleging serious irregularities in Lavasa's resolution plan. It included fudging of figures and misrepresentation of facts, which comprises of fudging of net-worth, share capital and long- term liability figures, misrepresentation in the valuation of shares and inconsistencies in filings with the Union ministry of corporate affairs (MCA). NCLT also dismissed IA filed by employees of Lavasa, stating that the applicants lack the locus and there is no question of considering their apprehensions. Earlier in March, the enforcement directorate (ED) descended upon the Darwin Platform group, conducting raids across nine locations in Delhi, Mumbai and Goa, seizing cash worth around Rs78 lakh, incriminating documents and foreign currency of Rs2 lakh from the residence of Ajay Harinath Singh and his associates. The ED alleges the transfer of nearly Rs18 crore through layered transactions involving multiple accounts linked to the Darwin group and personal accounts of the Singh family and associates. The Darwin group also stands accused of being the primary beneficiary of funds routed through Dlehman Rea-IT Trade Pvt Ltd, adding weight to the money laundering charge. As reported by Moneylife, Mr Singh claims that the Darwin Platform group of companies is in the business of refineries, infrastructure, automobiles, defence, pharmaceuticals, airlines, electric vehicles, banking, finance and media – but has seldom mentioned that the group's primary source of income is multi-level marketing (MLM) or collective investment schemes (CIS). In fact, Darwin Platform Refineries, which is ostensibly its 'refinery business', is also into direct sales that resemble MLM or Ponzi business modules. INDIA

Adani Goodhome's Resolution Plan Moves Forward For Radius Estate Despite Legal Challenges

9/7/2024 12:02:00 PM

The Supreme Court on Friday declined to stay the resolution plan of Adani Goodhomes, a subsidiary of Adani Infrastructure and Developers, to acquire the insolvent real estate company Radius Estates. The bench, comprising Justices Sanjiv Khanna and Sanjay Kumar, issued a notice to Adani Goodhomes and other parties, including the dissenting creditor Beacon Trusteeship, which challenged the plan in the Supreme Court after it was upheld by the NCLAT. Beacon Trusteeship claimed the plan imposed an around 93% haircut on its claims. The case will be heard again in January 2025. This case highlights the ongoing issue of substantial haircuts taken by lenders in insolvency resolutions. The Congress party, on 4 September 2024, raised concerns based on data from the All India Bank Employees Association (AIBEA), which revealed that public sector banks took a 74% haircut on their outstanding dues from 10 financially stressed companies after they were acquired by the Adani Group. In this case on 27 May, the National Company Law Appellate Tribunal (NCLAT) upheld Adani Goodhomes' plan to take over Radius Estates, rejecting challenges from dissenting creditors includes ICICI Prudential Venture Capital Fund and Beacon Trusteeship. This decision reaffirmed an earlier order from the Mumbai bench of the National Company Law Tribunal (NCLT), which had approved the plan and dismissed allegations of collusion. Dissenting creditors, such as Beacon Trusteeship, alleged that the resolution professional (RP), Jayesh Sanghrajka, and HDFC Ltd, the largest creditor, colluded, resulting in only one bid being received. They demanded a restart of the insolvency process, but the NCLT Mumbai approved Adani Goodhomes' bid in December 2022, citing insufficient evidence for these claims. Financial creditors' loss, homebuyers' gain The Resolution Plan violated Section 30(2) of the Code, according to dissenting creditors. They argued it was unfair because it imposed a 93% haircut on secured financial creditors while providing 100% recovery to homebuyers through allotted units without reductions or price increases. They also criticized the RP for expediting the Corporate Insolvency Resolution Process (CIRP) and pressuring the Committee of Creditors (CoC), alleging that the incomplete Valuation Report hindered an informed decision. Adani Goodhomes has offered approximately ₹76 crore to Radius Estates' creditors, who have claims totalling around ₹1,700 crore, resulting in a 93% haircut for the creditors, accoding to media reports. The resolution plan received support from over two-thirds of the creditors, including nearly all of the 700 homeowners, as well as financial creditors like HDFC, Yes Bank Ltd, Piramal Capital & Housing Finance Ltd, Infinite Buildcon Private Ltd, and ICICI Bank Ltd. ICICI Prudential Venture Capital Fund, and Beacon Trusteeship were the only dissenting creditors who challenged the plan, citing foul play. Their challenges were rejected by both the NCLT and NCLAT, prompting them to escalate the matter to the Supreme Court. Homeowners had collectively advanced around ₹800 crore to book their homes. Although they are considered a separate class of creditors, they have the same rights as financial creditors. Of the ₹1,700 crore claims filed by financial creditors, debenture holders' claims are estimated at around ₹200 crore. Adani Goodhomes has also committed to completing the residential project in Mumbai at no additional cost to the homeowners. Following the plan's approval, Adani Goodhomes infused ₹450 crore as interim finance by 31 December 2021, which was used for dues payment, FSI premiums to the Municipal Corporation of Greater Mumbai (MCGM), and the commencement of construction. Radius Estates' bankruptcy Radius Estates and Developers Pvt. Ltd. had partnered with MIG (Bandra) Realtors and Builders Pvt. Ltd. to redevelop land in Bandra (East), Mumbai. The project aimed to construct residential flats for the rehabilitation of members of the Middle-Income Group Co- operative Housing Society, along with a free- sale component. However, construction halted in January 2020, leading Beacon Trusteeship Ltd. to file a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process. On 30 April 2024, the NCLT initiated insolvency proceedings. At the start of the moratorium, Radius Estates had sold 224 units and had 146 units left for sale. Out of the 15 proposed buildings, only nine were partially constructed, while the construction for the remaining six had not yet begun. When the resolution professional invited plans, Adani Goodhomes and Ashdan Developers submitted proposals. Adani Goodhomes' plan was approved by the Committee of Creditors with an 83.93% voting share and received NCLT approval. Source: Mint INDIA

Ghaziabad : NGT Says in Three Months Hotels, Restaurants & Malls Get Pollution Certificate

9/6/2024 12:39:00 PM

The National Green Tribunal (NGT) directed on Wednesday hospitality establishments — hotels, malls, banquet halls, restaurants with seating capacity of 36 upwards — in the district to obtain consent to operate certificate from the state pollution control board within 3 months or face shut down. The certification allows for the discharge of effluent (sewage or trade effluent) into a sewer or land, as well as the emission of air pollutants. NGT asked the UPPCB to take "punitive, preventive, prohibitive and remedial steps including, assessment and recovery of environmental compensation, expeditiously " against establishments that were previously granted time by it to obtain consent to operate certificate but had not done so. Compliance conditions mentioned in consent to operate certifiactes must be abided by the establishments and this has to be made sure by the board, it added. The directive came in the wake of an original application filed by environmentalists Pradeep Dahalyia and Prasoon Pant in NGT last year. The duo had alleged that 21 large hospitality entities in the city were not following environmental norms and were causing pollution. Later on, more hospitality establishments were brought under the ambit of a survey carried out by the state pollution control board. "In respect of the orders of environmental composition already passed by the UPPCB, we clarify that these orders are appealable under the relevant statutes. Therefore, the aggrieved persons may avail such statutory remedy in accordance with law and this order shall not affect those orders already passed," the tribunal directed. Giving further reprieve to such establishments, NGT said "However, in respect of the closure orders already passed, but later consent has been obtained, appropriate order to enable such proponents to operate shall be passed by the competent authority of UPPCB in accordance with law without any further delay." Environmentalists said NGT has made it clear that hospitality establishments will have to comply with the Water and Air Acts. "Directions in this order should be replicated across other regions of UP and in other states," Dahaliya said. NGT further directed that a compliance report shall be filed by UPPCB by Jan 15, 2025, showing the status as on Dec 31, 2024, before the registrar general of the tribunal and if any further order is required, the matter shall be placed before the bench concerned. UPPCB had recently submitted a status report wherein it had directed closure of 15 units while issuing show-cause notices as well as environmental compensation on 25 establishments, including Aditya Mall, Indirapuram; Garam Dharam, Arthala; Hotel Grand Tushar, Chaudhary Mod; Mangalam Banquet, Vasundhara among other such establishments. Closure order has been initiated against Hotel Clarks Inn, Raj Nagar; Royal Enterprises, Bhopura; Pind Balluchi, Crossings Republik; Hotel Platinum, Sahibabad; Golden Leaf restaurant, Sahibabad among others. Source : The Economic Time INDIA

In Top Four Cities Ultra-luxury Homes Valued Rs 2,443 Crore Sold in 2024

9/6/2024 12:39:00 PM

A total of 25 ultra-luxury homes priced more than ₹40 crore were sold in Mumbai, Hyderabad, Gurugram and Bengaluru in the first eight months of 2024 for a collective sales value of approximately ₹2,443 core, Anarock data showed. Of the 25 ultra-luxury properties sold across the top cities in 2024 so far, Mumbai alone sold 21 units collectively worth ₹2,200 crore - an 84% share of the total deals in this segment across the top cities. At least two separate ultra-luxury home deals collectively worth ₹80 crore were closed in Hyderabad’s Jubilee Hills. Gurugram in NCR witnessed one ultra-luxury home sold for ₹95 crore, while Bengaluru also closed one deal worth ₹67.5 crore. Of the 25 deals closed across cities this year, nine were of large ticket sizes worth over ₹100 crore each, and a collective sales value of ₹1,534 crore. Contrastingly, the whole of 2023 saw 10 such large deals for a collective sales value of ₹1,720 crore, the data showed. Apartments remained the preferred property type for HNIs. Out of the total 25 deals, 20 were for apartments and the remaining five for bungalows. Of the total of 25 ultra-luxury homes sold in 2024 so far, at least 20 were high-rise apartments worth approximately ₹1,694 crore. The remaining five sales were of bungalows cumulatively worth about ₹748.5 crore. At least 80% of the total deals were concluded by businessmen, and 12% by senior professionals from across various sectors. Bollywood celebrities and leading legal and medical professionals accounted for the remaining 8%. Amid the rise in demand for ultra-luxury trophy homes in the last two years, Mumbai tops the list of cities with maximum sales of such properties, despite it being by far the most expensive residential market in India. The financial capital unfailingly attracts HNIs and ultra-HNIs who buy ultra-luxury homes for investment, personal use, or both. Of the total 25 deals, at least nine deals in 2024 were worth more than ₹100 crore each. All these were transacted in Mumbai - seven in South Central Mumbai and two in Bandra and Juhu, the data showed. Price of ₹100 crore homes increases by 14% The average prices of more than ₹40 crore homes witnessed a 2% jump in the last eight months while the average price of homes in the more than ₹100 crore bracket witnessed a 14% increase in the period, it showed. The average ticket price of homes priced more than ₹40 crore have witnessed a 2% rise in the last eight months – from ₹1,00,208 per sq. ft. in 2023 to ₹1,02,458 per sq. ft. in August 2024. A deeper dive into the data reveals that homes priced more than ₹100 crore have seen a 14% price jump in the last eight months alone – from ₹1,24,697 per sq. ft. in 2023-end to ₹1,41,904 per sq. ft. in 2024 till date. This double-digit price appreciation in this segment even before the year concludes stands testimony to the unrelenting appetite for trophy homes. Not surprisingly, leading Grade A developers have scaled up ultra-luxury homes supply in the last few years, the data showed. “The whole of 2023 saw about 61 deals with a cumulative sales value of approximately ₹4,456 crore in Mumbai, Hyderabad, and Gurugram. With four months remaining in 2024 and the festive quarter from October to December ongoing, we are likely to see more such large ticket-size residential deals happening before the year is through,” said Anuj Puri, chairman – ANAROCK Group. Source : Hindustan Times INDIA

HC Stays Land Rs 111 Crore Claim by L&DO on ITC Maurya Land

9/6/2024 12:38:00 PM

The Delhi High Court on Wednesday halted a ₹111-crore ground rent demand by the Land and Development Office (L&DO) for the past 25 years on six acres of land leased to the conglomerate in 1975. This is a significant relief to Calcutta-based ITC, which operates a luxury five-star hotel in the heart of New Delhi. On this property in Diplomatic Enclave, New Delhi’s Sardar Patel Marg, sits the ITC Maurya hotel. In addition to giving notice to the L&DO of the Urban Development Ministry, Justice Sanjeev Narula also halted the two demand notices dated March 14 and April 22, which demanded that ITC pay ground rent totalling ₹111.06 crore. The subject has been postponed until October 22 for additional hearings. In addition, ITC has asked the L&DO to issue a directive to proceed with its October application for the land’s conversion from leasehold to freehold in compliance with the then-current 2003 policy. Although ITC was given permission to use the six acres of property in 1975, a perpetual lease title was provided to it in 1988 in exchange for a yearly fee payment of ₹13.13 lakh. Enraged by “such brazen conduct from the L&DO officials,” senior counsel Anil Kher said the HC in his appearance for the ITC that the office was acting “arbitrarily and unreasonably” in trying to retroactively amend the ground rent in violation of its own office instructions and circulars. Source : The Economic Time INDIA

Gurugram: ED Searches Ramprastha Group Premises in Money Laundering Case

9/5/2024 12:52:00 PM

New Delhi, Sep 4 (PTI) The Enforcement Directorate conducted searches at multiple locations of real estate company Ramprastha Group in Gurugram on Wednesday as part of a money laundering investigation linked to alleged cheating with home buyers, official sources said. The ED case stems from a clutch of FIRs filed by the local police against the company by "disgruntled homebuyers for non-fulfilment of the promise of handing over the (housing) projects to them", the sources said. The projects include Ramprastha Rise, Ramprastha City and Ramprastha SKYZ located in Gurugram, Haryana. There was no response to phone calls made by PTI to the company. ED sources said some promoters of the group like Balwant Chaudhary, Arvind Walia and Sandeep Yadav have been called for questioning but they are yet to join the investigation. The company said on its website that it holds a large land bank in Gurugram with a combined development potential of over 80 million sq. ft. "We have successfully sold 8000 dwelling units in the region and have a potential to reach near 100,000 dwelling units in the days to come," the company said. The ED action in Haryana comes ahead of voting in assembly polls on October 5. Source : The Economic Time INDIA

Capital Land Target to More Than Double India Funds Under Management by 2028

9/5/2024 12:51:00 PM

Singapore property giant, CapitaLand Investment, plans to more than double its Indian funds under management (FUM) from its current levels around Rs 46,000 crore, by 2028, and also plans to expand its play into data centres, logistics and industrial parks, and renewable energy. CapitaLand, owned by Singapore's sovereign wealth fund Temasek, is also readying to enter the private credit business for real estate, especially in early-stage financing for various projects. CapitaLand Investment usually directs its Indian investments either through affiliated funds, or through the CapitaLand India Trust, a real estate investment trust listed in the Singapore Exchange. CapitaLand first entered India through the International Tech Park in Whitefield, Bengaluru, and has gone on to establish large office campuses across various cities, totalling 23.5 million square feet, as well as entering the hotels business through CapitaLand's Ascott vertical. Sanjeev Dasgupta, CapitaLand Investment's India Chief Executive Officer, said that significant capital expenditure has been earmarked for data centre projects, the first ones are expected to be operational from next year, with other data centres being planned in Mumbai, Hyderabad, Bengaluru, and Chennai. "Four data centres are under development, with a capital expenditure of 1.5 billion Singapore dollars. The first ones are expected to be operational in Mumbai and Hyderabad in the middle of next year. We are also planning a data centre in Kolkata in a partnership, in order to take advantage of the planned cable landing station in the state. We are seeing a wide range of interested parties, including global investors, for data centres," Dasgupta told Moneycontrol on the sidelines of an event. Dasgupta said that around half the Indian investments are expected to be routed through the real estate investment trust, while the rest are slated to be routed through CapitaLand's affiliated funds. As for the proposed entry into the private credit business for real estate, Dasgupta said that CapitaLand Investment has been monitoring the vertical for "quite a while", although the initial deployment may be a modest 200-250 million Singapore dollars. Private equity players have made a beeline in recent years to invest in real estate projects in India, either at a company level or a platform level, with such funding being crucial for developers in buying land or securing approvals. This form of funding is also popular with investment firms, especially those managing sovereign wealth, pensions, or private wealth, as they offer relatively quick exits with healthy rates of return. Property consultancy JLL has estimated construction finance in Indian real estate to be a $170 billion opportunity over the next two years. CapitaLand Investment's interest in renewable energy is largely linked to its growing portfolio in data centres, an asset class that is becoming a major consumer of power globally, to the concerns of some, especially if the sources of power are from non-sustainable sources such as coal or gas, known as "brown" power. The company has set up a 21 MW captive solar power plant in Tamil Nadu. Andrew Lim, group Chief Operating Officer of CapitaLand Investment, said that with some countries imposing moratoriums on building new data centres, India's role as a data centre hub is emergent, with more investors willing to bet their money in the country. "There has been a change in relative allocations to India. Capital market players are now willing to invest in India and diversify their portfolio. Data centres are a fundamentally local business, and have become important due to the increasing trend of nationalisation of data, with local power infrastructure also being important. Due to data centres consuming large amounts of power, it is important to undertake initiatives such as solar power and renewables, as no sustainability-minded investor would want anything to do with a sector that consumes large amounts of brown, dirty power," Lim told Moneycontrol. For its offices business, Dasgupta said that the company has a land bank for around 16 million square foot of office space in India, which is expected to be developed across Hyderabad, Pune, Chennai, and Bengaluru. He added that the projects are expected in a mix of greenfield and brownfield developments, in order to reach previously untapped micro- markets in cities that the company is already present in. Source : Money Control INDIA

SC Demand Details of Sahara Shareholders, Properties

9/5/2024 12:50:00 PM

The Supreme Court on Wednesday asked the Sahara Group to apprise it of its officials at the helm and the current shareholders besides the list of unencumbered properties which can be sold to realise Rs 10,000 crore. The amount has to be deposited in SEBI- Sahara refund account for returning the investors' money. In a series of directions on August 31, 2012, the top court had directed that Sahara Group firms Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) would refund the amount collected from individual investors or group of investors, with interest of 15 per cent per annum to SEBI from the date of receipt of the subscription amount till the date of repayment within three months. A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi said the court has to find some practical solution for refunding the investors' money as the issue is pending for over a decade. "Sahara Group has said that it will submit some scheme for depositing around Rs 10,000 crore. This matter cannot go on and on. It has been more than 10 years since the court directed for a deposit of Rs 25,000 crore. We have to find some practical solution to make a headway as the company has only deposited around Rs 15,000 crore till now," the bench said. Justice Khanna pointed out that senior advocate Kapil Sibal, appearing for the Sahara Group told on Tuesday that the company will submit a roadmap for depositing the balance amount. Senior advocate Arvind Datar, appearing for SEBI, said after the demise of Subrata Roy in 2023, no one knows who heads the company and how it is going to deposit the money in compliance with the court's order. "We want to know about the current organisational structure including names of directors and the shareholders," the bench said, adding that on Thursday it will first deal with the question of sale of properties and then it would deal with the question of refund of money to the investors. "We will peruse the roadmap to be submitted by Mr Sibal and also the previous roadmaps, which have been given in this court. We want a list of all the encumbered and unencumbered properties of the Group except for Aamby Valley, so that necessary directions can be passed on them," the bench said. The bench asked senior advocate Shekhar Naphade, who has been appointed as amicus curiae in the matter to start his submission on Thursday. On Tuesday, the top court said there is no embargo on Sahara Group to sell its properties for depositing around Rs 10,000 crore in SEBI- Sahara refund account for returning investors' money. While expressing displeasure over the Sahara Group not depositing the full payment as directed by the court, the bench had said, "There is no embargo on Sahara Group in selling its properties for depositing the remaining Rs 10,000 crore out of Rs 25,000 crore ordered by the court. Only thing was that it should not be sold below the circle rate and if it is to be sold below the circle rate, then prior permission of the court is to be sought." In November 2023, Sahara Group chief Subrata Roy, who was earlier ordered to be taken into custody by the court in the matter, passed away at a private hospital in Mumbai. Earlier, SEBI told the court that in terms of the 2012 order of the top court, Sahara firms have till date deposited Rs 15,455.70 crore which has been invested in fixed deposits of various nationalised banks and as on September 30, 2020, the total amount along with interest earned in SEBI-Sahara refund account is Rs 22,589.01 crore. It had said the contemnors Sahara Group chief and his firms SIRECL and SHICL are in "gross violation" of various orders passed by the court regarding the deposit of "entire monies" collected along with the interest. A contemnor is a person or entity which has been held to be in contempt of court. The market regulator said out of the total outstanding principal liability of Rs 25,781.32 crore, SEBI has realised only Rs 15,455.70 crore from the Saharas and from sale of properties of the group. "The balance amount of Rs 10,325.62 crore (principal amount) is still to be paid by Sahara Group. It is submitted that as on September 30, 2020, total net liability of Saharas was Rs 62,602.90 crore taking into consideration interest at Rs 15 per cent in terms of directions of this court dated August 31, 2012," SEBI had said in its 2020 application filed in the matter. Source : Economic Time INDIA

Max Estate Secures Rs 800 Crore QIP For Growth Capital

9/5/2024 12:49:00 PM

Realty firm Max Estates plans to raise Rs 800 crore by selling equity shares to institutional investors for the growth of business. In a regulatory filing on Thursday, Max Estates informed that an Investment and Finance Committee of the board approved launch of Qualified Institutional Placement (QIP) issue. The panel also approved the floor price for the issue at Rs 628.74 per equity share. According to sources, all major domestic mutual fund companies have participated in the QIP issue. The company would utilise the fund to acquire land in Delhi-NCR, they added. According to the notice of the 8th Annual General Meeting (AGM) of the members of Max Estates Ltd, the company plans to raise up to Rs 800 crore. "The company anticipates certain growth opportunities in its existing line of business," Max Estates said. The company said it continues to evaluate various growth avenues, including land acquisition. Max Estates proposed to raise funds aggregating up to and not exceeding Rs 800 crore through the issuance of securities. The company is one of the leading real estate developers in Delhi-NCR. Source : Business Standard INDIA

EOW Audit Likely For COS that Didn't Take Rehab Deal

9/4/2024 12:27:00 PM

Noida: Noida Authority may soon write to the Economic Offences Wing (EOW) against the developers who are yet to avail of relief under UP govt's rehabilitation package for stalled residential projects. Of the 57 projects that had defaulted on land dues, 22 have accepted the rehabilitation package, which offers a two-year zero-period relief — from April 2020 to March 2022 — exempting developers from paying interest and penalties for the period when work was stalled due to the Covid-related lockdown. Twenty-nine realtors, who are yet to take up the package, cumulatively owe Noida around Rs 6,900 crore in land dues and have over 12,700 flats. "Builders claim that there are no unsold inventories in their projects. So, where has the amount collected from the homebuyers gone? They have not paid our dues. The Authority will write to the EOW and seek guidance on how to proceed with the case. The EOW will be requested to investigate and conduct a financial audit of the developers and determine how and where they diverted money received from homebuyers. If necessary, an FIR will be filed (against the defaulters)," CEO Lokesh M told TOI. The decision to write to EOW was taken at a meeting on Tuesday. It comes days after CM Yogi Adityanath directed the three industrial authorities to enforce punitive measures — sealing vacant or unallocated flats and reclaiming unconstructed or vacant areas — outlined in the rehabilitation package against non-compliant developers. Officials said developers who have deposited 25% of their recalculated dues after receiving relief for zero-period dues but have not completed the proportional number of flat registrations will not be considered for the next round of relief to projects that were affected due to a construction ban imposed by NGT. The Authority is to offer additional relief on a case-by-case basis to projects which were halted due to an NGT order that banned construction within 10 km of the Okhla Bird Sanctuary. So far, 22 builders have deposited 25% of the total recalculated dues that cumulatively amount to Rs 275.7 crore. The dues for six other builders have been nullified after they were extended zero-period relief. Across these 28 projects, a total of 2,558 homebuyers are now eligible to register their flats — of these, 1,298 registrations have been completed. While the total dues from the 57 defaulter projects were Rs 8,273 crore, a rebate of Rs 1,866 crore was calculated to be offered to builders on account of the two-year zero period, which was to reduce the dues to Rs 6,373 crore. With relief under the UP govt package applicable only to 28 projects — their cumulative dues are around Rs 1,375 crore — the total recalculated dues currently stand at Rs 1,020 crore. The 29 builders that have not availed the package are ineligible for rebate, which is to put their dues back to around Rs 6,900 crore. According to officials, 13 of these 29 projects accepted the govt's package for stalled projects but paid a minuscule amount, seven gave consent but did not pay anything, and nine projects never gave any consent. Source: Hindustan Times INDIA

Noida Authority Lift Ban on Sports City Project in Sector 50

9/4/2024 12:24:00 PM

NOIDA: The Noida authority is likely to lift the three-year long ban imposed on apartment registration in the Sports City housing project located in Sector 150, said officials on Tuesday. The move will benefit thousands of homebuyers who are suffering for the last three to four years after the authority, in 2021, had imposed the ban in view of the comptroller and auditor general (CAG) audit. The state’s highest body -- public accounts committee (PAC) consisting of senior MLAs -- following a probe has finally recommended to remove the ban, and approve the revised layout of Sports City project having Luxury housing projects in Sector 150, located along Noida-Greater Expressway. “Since we have got the recommendations to lift the ban on registry and also approve the revised layout submitted by the developer, we have decided to take the matter up in the upcoming board meeting that will be organised soon after the chairman gives time for the same,” said Noida authority’s chief executive officer (CEO) Lokesh M. After discussing the matter, the authority board will take a call on starting apartment registration, issuance of occupancy certificate and also approving the revised layout of this housing project, he added. The Noida Authority aims to organise the board meeting any time before the model code of conduct comes into effect ahead of the 2024 general elections, if the UP additional chief secretary Manoj Kumar Singh who is also chairman of the Noida authority gives time for the same, the CEO further added. Under Singh’s chairmanship, the board will discuss the Sports City issues on merit basis and decide the fate of this project where huge investment is at stake. “The authority had banned sub-lease (registry) of plot or flat sale in Sector 150 because the comptroller and auditor general of India had started the probe. Now the CAG observations were looked into and resolved by the PAC. Also, the PAC asked the Noida authority to remove the ban imposed on sublease deed and approve the revised layout of Sports City so that the stuck realty projects can take off,” said a Noida authority official aware of the matter. The Noida authority’s 201st board meeting had on January 18, 2021 banned the approval of building map revisions and also the registry of the apartment owners in the city’s Sector 150, located along Noida-Greater Noida Expressway causing distress to the homebuyers who are living in their respective apartments without registry. Under the sports city project, the consortium of developers led by Lotus Greens constructions private limited are developing ultra luxury housing projects on 30 percent of land and remaining 70 percent is reserved for recreational green with world-class sports facilities as per the terms of the scheme, said officials. In master developer Lotus Greens’ sports city the Tata, Godrej, ACE, Prestige Group, Home Kraft, Eldeco and Samridhi Group among others are developing realty projects, and the Birla Estates has also shown interest to take up land in this project, they added. In 2014-15, the Noida authority had allotted 12 lakh square metres of the sports city land in sector 150. However, the Noida authority is yet to hand over the possession of at least 300,000 square metres of sports city land due to farmers’ dispute prompting a group of realtors to approach the Allahabad high court. At least 10,000 homebuyers will get immediate relief as they will be able to execute their registries, if the authority implements the court order. According to Dinesh Gupta, secretary, Confederation of Real Estate Developers Associations of India (CREDAI), Western UP chapter, and managing director of Samridhi Group, they are happy to learn that the Noida authority will remove the ban on registry and also approve the revised layout of building maps following the PAC directions. “The move will benefit the homebuyers, who are waiting for their registries for a long time,” he said, adding: “Also, the move will boost sentiment in this sector 150 that is home to the luxury realty projects and the most sought after destination for those who want to own a dream home.” Source: Hindustan Times INDIA

Punjab Passes Bill Allowing Property Registration in Illegal Colonies Without NOC

9/4/2024 12:20:00 PM

Chandigarh, Sep 3 (PTI) The Punjab Assembly Tuesday unanimously passed a Bill, which aims to do away with the practice of NOC for the registration of properties in illegal colonies, with Chief Minister Bhagwant Mann saying it will be a major reprieve for common people. Mann tabled the Punjab Apartment and Property Regulation (Amendment) Bill, 2024 in the assembly on the second day of its three- day session. Participating in the discussion on the Bill, Mann said any person who, up to July 31, 2024, has entered into a power of attorney, agreement to sell on stamp paper, or any other such document for an area up to 500 square yards in an unauthorized colony, will not require any no objection certificate (NOC) for registration of land. Such property owners will be entitled to get registration of such an area executed before a registrar or sub-registrar or joint sub- registrar and this exemption of getting such an area registered shall be available up to the date as may be notified by the state government, he said. Mann said this amendment aims to ensure stringent control over the illegal colonies, besides giving relief to small plot holders. This is a major reprieve for the common man as this amendment aims to overcome problems being faced by the public in registration of their plots, he said. It will give a major relief to crores of people who mistakenly invested their hard earned money in the illegal colonies, said Mann, adding that these innocent people put their money into building their homes but landed in trouble. According to the Bill, if any person or promoter or his agent registered under this Act fails to comply with the relevant provision of the law, he/she shall be punished with imprisonment for a minimum term of five years which may extend to 10 years and with minimum fine of Rs 25 lakh, which may extend to Rs 5 crore. Mann said the illegal colonisers dupe people by showing them green pastures and sell their unapproved colonies which lack basic civic amenities like streetlights, sewerage and others. He said in an out of the box idea, the state government has introduced colour coding of the stamp papers to facilitate the investors for getting the necessary permissions. The CM said it will ensure that the land is optimally utilized only for the purpose for which investors sought necessary permissions. Illegal colonies had mushroomed up during the long “misrule” of the previous governments as the earlier rulers had patronized the illegal colonizers, he alleged. Participating in the discussion on the Bill, Congress leader Partap Singh Bajwa supported it but claimed that illegal colonies are still coming up in the state. He sought that money should be recovered from colonizers who had set up illegal colonies. There is a need to stop urban slums, he said. Finance Minister Harpal Singh Cheema said the amendment to the Punjab Apartment and Property Regulation Act (PAPRA) 1995 is a significant step towards improving the economy of Punjab and providing relief to the common people. Cheema said the PAPRA Act aimed to prevent unauthorised colonies, but the Congress and SAD-BJP-led previous governments’ “failures” led to widespread illegal colonies without basic amenities like water supply, sewage, and proper roads. Cabinet Minister Aman Arora said there are around 14,000 illegal colonies in the state. He further said this law will prevent the setting up of illegal colonies in the state. Independent MLA Rana Inder Paratp Singh sought from the government to know who will provide necessary facilities in illegal colonies. Source: The Economic Time INDIA

SC Directs No Stay Any Legal Action Against 300 Realtors

9/4/2024 12:16:00 PM

The Supreme Court has ordered an interim stay on a direction of the Allahabad High Court for an Enforcement Directorate probe into financial transactions linked to Noida's luxury housing project Lotus 300. A vacation bench of justices Sanjay Kumar and Augustine George Masih passed the order on Tuesday. Earlier on February 29, the Allahabad High Court had ordered the ED probe into alleged financial irregularities linked to the incomplete housing project Lotus 300 in Noida's posh Sector 107. The land was allotted to Hacienda Project Private Limited (HPPL), a consortium of companies with Pebbles Infrotech as lead member, to develop Lotus 300, with 3C as its parent company. The high court had also slammed the local Noida Authority, berating it for "gross negligence" in taking any steps or even ascertaining status of payment towards its dues for over a decade has led to ballooning of its dues, which is approximately Rs 166 crore as of today (February 29). "Pending further orders, there shall be interim stay of the direction of the High Court contained in paragraph 114. However, all parties concerned shall endeavour to ensure that the direction of the High Court in paragraph 117 is duly implemented within time," the Supreme Court bench stated in its order. The paragraph 114 of the high court order pertained to ED probe against all the directors, promoters, designated promoter, officer who is in default, companies, other entities in which money from HPPL is "syphoned or parked". "These entities or people are directed to cooperate in the investigation and if they do not cooperate in the investigation then ED would be free to take any appropriate action against them as available under the law," the high court had ordered. "The ED will make all sincere efforts to recover the said amount and pay off all dues of all the creditors," it had stated. In the paragraph 117 of the order, the high court had directed the Noida Authority to issue occupancy certificate or part-completion certificate, as the case may be, and to execute tripartite agreement and registered deed in favour of flat buyer within a month. Source: Hindustan Times INDIA

HC Orders Noida Authority to Maintain Status Quo in Wajidpur Demolition

9/3/2024 12:59:00 PM

NOIDA: The Allahabad high court has ordered the Noida authority to maintain status quo about a demolition notice in Wajidpur village until objections filed by the petitioners are addressed while also restraining the petitioners from carrying out any more construction on the disputed site or creating third-party interests on the land in question, officials said on Sunday. “We will follow the HC order and take appropriate step as per the law,” said Lokesh M, chief executive officer, Noida authority on Sunday. The matter had originated in July after owners of a plot in Nagli Wazidpur village started constructing a building. And the Noida authority objected to it. The court’ order was delivered against a writ petition filed by a group of landowners from Noida’s Nagli Wajidpur village stating that the Noida authority had issued a notice asking them not to continue with the construction work at the site in question. After hearing both sides, the court acknowledged the petitioners’ concerns regarding the potential harm if their objections were not duly considered. The court directed the Noida authority to resolve the objections filed by the petitioners within six weeks, ensuring that all stakeholders are given an opportunity to present their case. “In the interest of justice, we dispose of the writ petition with the observation that the objections of the petitioners shall be decided in accordance with law expeditiously and preferably within six weeks from today but certainly after giving an opportunity to all the stakeholders in the matter. Until the disposal of the said objection, the parties shall maintain the status quo as of today concerning the property in dispute. The petitioners are also restrained from raising further construction over the disputed site or creating third-party interest,” said HC order issued on 20 August, 2024. On July 23, 2024, the Noida authority issued a notice to the land owners of Nagli Wazidpur near Sector 130. The petitioners’ counsel argued in the high court that the land in question had already been declared as Abadi land (residential land) under a section of the UP Revenue Code by the additional district magistrate (ADM) in 2014. The petitioners claimed that despite an ongoing civil suit and an interim injunction granted by a local court, the authority tried to interfere with their possession of the land. According to the petitioners, the Noida authority had previously issued a notice under Section 10 of the UP Industrial Area Development Act on 5 April 2024, which was challenged in the high court. The HC bench allowed the authority to proceed in accordance with the law. However, the petitioners contended that the fresh notice issued on 23 July could lead to their eviction and the demolition of their property, without due consideration of their objections. Resisting the writ petition, the Noida authority argued that it was within its rights to take necessary actions regarding the disputed land, as it falls within the territorial jurisdiction of the authority. It also emphasised that the petitioners should not be allowed to pursue parallel legal remedies while evading the proceedings under the Act. Source : Hindustan Times INDIA

Omaxe Group Put Rs 2500 Crore to Develop Commerical-cum-sports Complex in Delhi

9/3/2024 12:56:00 PM

“With ‘The Omaxe State,’ we aim to provide Delhiites with an international-level experience right here in their own city. This development will bridge a significant gap in Delhi’s infrastructure by offering a world-class venue for sports, shopping, and entertainment. We are thrilled to contribute to the city’s growth and elevate its profile with this unique 5-in-1 destination,” said Mohit Goel, Managing Director of Omaxe Group. The facility is located close to Yashobhoomi, Asia's largest convention center, IGI Airport, Bharat Vandana Park and the upcoming diplomatic enclave. Delhi-based Omaxe Group will invest ₹2500 crore on a commercial-cum-sports complex at Dwarka spanning over 50.4 acres, the company said on September 2. The project is expected to be completed by 2027 and likely to generate over ₹4,200 crore in revenue during its lifecycle, the company said in a statement. Omaxe has launched The Omaxe State that comprises a sports complex, retail area and a hotel. The company will build a cricket-cum- football stadium besides providing indoor games facilities, it said. Where will the project be located? To be located in Sector 19-B, New Delhi, the project is being developed in partnership with the Delhi Development Authority (DDA) under a public-private partnership (PPP) model, with an investment over ₹2500 crore, the company said in a statement. The Omaxe State will feature a modern ICC and FIFA-standard International cricket-cum-football stadium with a seating capacity of over 30000, as well as an international multi-sports indoor stadium that can accommodate 2000 spectators, it said. The Omaxe State will feature a sports district, a shopping district, a hospitality district, a food district, and a social district. The food district will be inspired by London's Covent Garden and Carnaby Street. It will span over 5 lakh square feet and feature more than 40 fine dining restaurants, night and day clubs, sports bars, three drive-throughs, a large food court, rooftop restaurants, food kiosks, food trucks and banquet facilities, the company said in a statement. Beyond retail, the facility will include a by-invitation sports and leisure club, a 75,000 sq. ft. e-sports arena, and a hotel with 148 keys. The complex will also feature a large banquet space with multi-level parking, an event arena for social and cultural events, an Olympic- sized swimming pool and tennis, badminton, squash, basketball, and football facilities, it said. Source : Hindustan Times INDIA

Central Government Guidelines for Transfer of Salt Land

9/3/2024 12:51:00 PM

The Centre on Monday modified the guidelines for transfer of government-owned salt lands, providing for online auction under which the private sector can participate in case there are no takers from CPSEs, or states at the applicable rates. As per the revised guidelines, the land can be allocated for welfare measures, such as slum re-development, affordable housing and PM-Awas Yojana, and for the purpose of schools and colleges, lands can be transferred to CPSEs (central public sector enterprises), states and their enterprises at 25 per cent of the circle rate. These norms were issued in supersession of the internal policy guidelines-2012, after the approval of the Cabinet. "Online auction with the participation of private parties may be held in case CPSEs, state governments or their PSEs are not willing to take such lands at the applicable rates," the guideline said. The reserve price for such land parcel will be fixed through an approved valuer with reference to the circle rate after taking into account any physical constraints in developing such land. About 60,000 acres of salt land are there in different states like Maharashtra, Andhra Pradesh, Tamil Nadu, Odisha, Gujarat, and Karnataka. Highest tract of such land is there in Andhra Pradesh (20,716 acres), followed by Tamil Nadu (17,095 acres) and Maharashtra (12,662 acres). The Salt Commissioner's Office, headquartered in Jaipur, is under the administrative control of the DPIIT (Department for Promotion of Industry and Internal Trade). Its functions include promotion of technological development, custody and superintendence of departmental salt lands and other assets. Further, the guidelines said that for ports and its related activities, and industrial purposes, SCO lands may be transferred to CPSEs, states and their entities at 50 per cent of the circle rate. Similarly, for public infrastructure and utilities such as roads, highways, bridges, sewage treatment plants, and transmission lines, these lands can be transferred at 10 per cent of the guideline value/circle rate. "In those cases where CPSEs, state governments and their PSEs are willing to pay on the above terms for SCO land parcels that are encumbered due to ongoing litigation, encroachment or other types of disputes, a further discount of 20 per cent on the applicable concessional rates, shall be considered, for transfer of such land," it added. It also said that the allottee state governments shall not transfer ownership of this concessional land to any other entity in future even for the same purpose. "However, states/state PSEs are allowed to sub-lease plots to the beneficiaries in the case of slum redevelopment projects, EWS (Economically Weaker Section) housing projects and industrial plots, etc," it added. As part of the general terms and conditions for transfer of these lands, the guidelines stated that the request for the transfer would be made to the DPIIT Secretary. "As at present, the competent authority for transfer of SCO land will be the Minister in-charge of Commerce and Industry. However, land under Mumbai and its Suburbs will continue to be transferred only with the approval of the Cabinet," it said. Source : Hindustan Times INDIA

Authorities Issues New Notice For GST on Transfer of Leasehold Land

9/3/2024 12:47:00 PM

The issue of tax implications of transferring leasehold land has come to the fore once again as the authorities have started to issue notices to recover dues for such a transfer. This has sparked a significant debate among industry stakeholders as it is expected to have a major impact on future transactions and the broader real estate market. The Goods & Services Tax (GST) authorities have recently issued these notices concerning the transfer of leasehold land. The crux of the issue lies in whether the transfer of leasehold land constitutes a sale of land or a service. According to the tax authorities, such transfers qualify as a service, subjecting them to an 18% GST. This tax is levied in addition to the stamp duty already imposed by respective state governments, adding a financial burden to these transactions. In India, industrial development corporations and other governmental bodies often transfer land parcels on a leasehold basis. These leasehold lands are sometimes sold by the original leaseholder to a new party. The key question that has arisen here is whether these transactions should be treated as a sale of land, which is traditionally exempt from GST, or as a service, thereby attracting the 18% tax. “Hypothetically, if GST is made applicable on these transactions, then there will be a dual levy of stamp duty and GST on the same transaction, thereby leading to tax cascading by way of double taxation on the same supply. This is against the conceptual framework of GST,” explained Abhishek A Rastogi, founder of Rastogi Chambers, who has already moved to the court in Maharashtra, for testing the constitutional validity of GST applicability on these transactions. Tax experts argue that the transfer of leasehold land is akin to the sale of land and should not be taxed under GST. They believe that since the leasehold interest in the land is being transferred, it should be viewed as a sale of immovable property, which is not within the GST's purview. However, the tax authorities maintain that these transactions represent the transfer of leasehold rights, classifying them as a service that is subject to GST. This dispute has significant implications for businesses and individuals involved in such transactions, as the additional GST could increase the cost of acquiring leasehold land and ultimately homebuyer who may have to bear the burden of higher project cost. Some of these notices are issued now to ensure that the demands do not become time barred and that these are within the period of limitation. However, the outcome of this issue is likely to set a precedent for how similar transactions are treated under the GST regime in the future. Source : The Economic Time INDIA