03-august-2019 - credai...

03-August-2019

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CREDAI Bengal Daily News Update | 03.08.19

WEST BENGAL NEWS

Kolkata-based realtors pick-up 34 prime KoPT plots in e-bidding

KoPT will soon start the process of handing over the plots to the successful bidders, initiating

the execution of a plan to unlock a portion of its surplus land in Kolkata for development.

Two city-based real estate developers have emerged as top bidders in an e-tendering process launched

by the Kolkata Port Trust to dispose of 34 prime plots in Kolkata and Howrah.

KoPT will soon start the process of handing over the plots to the successful bidders, initiating the

execution of a plan to unlock a portion of its surplus land in Kolkata for development.

These two developers ended up as top bidders for 14 of the 28 plots for which the process could be

completed, officials said on Friday.

The KoPT plans are in line with what has happened with Mumbai‟s surplus port land. KoPT, owner of

nearly 4,576 acres in Kolkata, unveiled the plan — to let out about 420 acres — in 2017. These plots,

located in north and south Kolkata and Howrah, can hold 320 football fields and will be developed

into commercial complexes.

KoPT chairman Vinit Kumar said: “We have already started the process of offering the next lot of

plots and have also written to the ministry of shipping for permission to develop such plots into

residential complexes. We are waiting for the go-ahead,”

KoPT will lease out its most prime asset at Portland Park near Alipore, where quarters for officers and

the chairman‟s bungalow is located, when the centre‟s permission for letting out property for

residential complexes arrives. A few port employees now occupy the quarters at Portland Park.

The plots that the realtors have successfully bid for are in Cossipore on Strand Bank Road (on the

banks of the Hooghly close to the Gun & Shell Factory and Cossipore Udyan Bati), Paharpur,

Sonapur Road, Budge Budge (near the Kali Temple), Transport Depot Road, Taratala, Hyde Road,

Kantapukur, Watgunge, Durgapur Siding, Garagachha Road and in Howrah‟s Shibpur.

Newspaper/Online ET Realty (online)

Date August 03, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kolkata-based-realtors-pick-up-34-prime-kopt-plots-in-e-bidding/70506776

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KoPT has registered an upswing in handling cargo but is still in need of cash to create a corpus for

nearly 22,500 pensioners. Plots are being offered on 30 years‟ lease for commercial purposes to raise

funds for this.

“We are evicting unauthorised occupants from our property along Strand Road and Taratala. These

properties will also be leased out later,” another port official said.

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OTHER NEWS

I-T detects tax evasion of Rs 700 crore by Mumbai's Hubtown Group

The Income-Tax department on Friday said it has conducted raids at 40 premises of a Mumbai-

based real estate firm and claimed to have detected tax evasion worth Rs 700 crore.

The Income-Tax department on Friday said it has conducted raids at 40 premises of a Mumbai-based

real estate firm and claimed to have detected tax evasion worth Rs 700 crore.

The CBDT, that frames policy for the tax department, issued a statement saying the operation was

conducted on July 29 on a "prominent group involved in real estate development" and its premises in

Mumbai and Pune were searched.

While the CBDT statement did not identify the group, official sources said it was the Hubtown group.

During the course of search operations, the statement said, the department unearthed evidences related

to receipt of 'On Money' on sale of commercial and residential blocks, bogus unsecured loans taken,

bogus Long Term Capital Gains (LTCG) and various other sham transactions to evade income

aggregating to about Rs 700 crore.

"The search action has unravelled peculiar transactions wherein by way of accounting jugglery,

income on transactions worth about Rs 525 crore has been evaded," it said.

'On Money' receipt on sale of residential and commercial blocks amounting to Rs 100 crore has been

corroborated during the search, the statement said.

During the search, the CBDT said "incriminating" evidence was unearthed pertaining to modus

operandi establishing the introduction of accommodation loans by the group, which have been found

to be bogus.

Moreover, use of entry providers and hawala operators for entries of LTCG by the promoters of this

real estate group have been affirmed during the search action, it said.

The action has also resulted into detection of jewellery worth about Rs 14 crore, which is under

verification, the CBDT said and added that the searches are still in progress.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/i-t-detects-tax-evasion-of-rs-700-crore-by-mumbais-hubtown-group/70506750

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Can you sell your property before registration?

You need to register your property as soon as you have paid the full amount for your property

and other charges to the builder.

Neelam Sharma has paid the full amount for her newly constructed flat and also taken a No-objection

Certificate (NOC) from her developer to register the property. But due to a financial emergency, she

was unable to arrange money for the Registry. Meanwhile, a friend came to her rescue and offered to

buy the property.

Neelam is not sure if she can sell her property before registration?

The fact is, failure to register a property puts you in high risk. Without Registration you have no legal

right over the property even if you have cleared all your dues with the builder.

You need to register your property as soon as you have paid the full amount for your property and

other charges to the builder. Stamp duty and registration charges are paid to the govt and the property

is registered in the name of the owner. This is how ownership right is created for a property. Without

registration, a buyer has no legal right over the property so, one cannot sell it to anyone under

the Transfer of Property Rights Act.

Registration Act

Section 17 of the Registration Act, 1908, mandates that documents of immovable property need to be

compulsorily registered. However, there is an exception - where the owner is in some difficulty

because of which he is unable to register the property.

Wherever one cannot register his property and wants to sell it to some other person, he can approach

his builder and request him to make changes in the Builder-Buyer Agreement and transfer the

ownership rights in the name of the new buyer. The builder levies processing charges and deducts

certain fees and allows the new buyer to register the property in his name. This way, the original

owner can sell his property to the new buyer even before registration is done. The builder‟s consent is

required as he holds the property rights till it is registered in the buyer‟s name.

Aditya Parolia, a Supreme Court lawyer, says, “If a Conveyance Deed is signed, you need to go as per

the Transfer of Property Act and get the property registered in the name of the new buyer through the

Registrar. But if not, the property title in the government records still vests with the builder and you

need to transfer your „Agreement to Sale‟ to the new buyer with prior confirmation from the builder

and his attestation for the same.”



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Conveyance Deed V/s Sale Deed

Conveyance Deed is a legal way of transferring rights of ownership of an immovable property from

one individual to another. A sale deed is a kind of conveyance deed when property has been sold by

one individual to another.

Even if you are not able to register the property due to some difficulty it is advisable not to take

possession of the flat. Otherwise the provisions of the Benami Transactions (Prohibition) Act, 1988

amended to date shall be attracted causing civil and criminal consequences.

Maharashtra Stamp Act

States like Maharashtra follow a unique process in such circumstances. Mumbai based property and

corporate lawyer, Mukesh Jain explains, “As per Article 5 (ga) of the First Schedule of Maharashtra

Stamp Act, 1958, the stamp duty paid on the agreement with the developer shall be set off against the

stamp duty payable on the sale agreement between the current and new buyer thus avoiding any

incidence of double stamp duty. The above facility of set off is available for any sale agreement made

within a period of one year from the date of the original agreement with the developer.”

Jain further suggests that, “One should not enter into a tripartite agreement between the developer, old

buyer and new buyer, or a direct agreement between new buyer and developer as it may create income

tax complexities for the original buyer and the developer.”

Affordable Housing

What happens when such a situation arises in an affordable housing project?

“For affordable housing projects, a builder can only deduct Rs 25,000 for advertisement cost and a

nominal processing fee to change the Builder-Buyer Agreement in the name of the new buyer. A

buyer can always ask for a refund and the builder is obliged to refund the money as per the

government rules for affordable housing,” says Praveen Aggarwal, co-founder & chairman, Signature

Sattva.

So you can sell your property to a third person but a processing fee is charged to change the Builder-

Buyer Agreement, if registration is not done. But if the property is registered, then you can sell it to

anyone without the builder‟s permission, as you have legal right over the said property.

If you land up in a situation like Neelam, the most important thing is to consult a legal expert and

speak to your builder as well. In this way, you will have clarity before you decide to take the next step

and complicate your case further.

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Noida authority to move SC on Rs 5,400 crore Amrapali dues

At the same time, the Supreme Court had on July 23 restrained the two authorities from staking

any claim in the housing projects of Amrapali.

The Noida and Greater Noida authorities have decided to file an application in the Supreme Court in

the Amrapali case, seeking clarity on how they are going to recover their dues of over Rs 5,400 crore.

The court had last month cancelled Amrapali‟s registration and asked state-run NBCC to complete its

housing projects in the twin cities.

At the same time, the Supreme Court had on July 23 restrained the two authorities from staking any

claim in the housing projects of Amrapali. Instead the court had asked the authorities to recover their

dues from the sale of the developer‟s other properties that have been attached. Moreover, it also

directed the authorities to issue completion certificate and execute the tripartite agreement within one

month in projects where homebuyers are residing and directed water and electricity supply be

provided.

But officials said the value of these attached properties of the developer are not enough to clear the

authorities‟ dues and that before the next hearing on August 9, they intend to file an application

seeking clarity on the same from the court.

“We do need more clarity on how our dues will be cleared, who will apply for the registry and how or

to whom the completion certificate will be issued. Our legal team is working on the representation that

will be made on the next date of hearing,” Noida Authority CEO Ritu Maheshwari said. “A nodal

team comprising eight members has also been formed to take care of new registries and buyers‟ issues

from Amrapali. We have also written to the power and water works departments for compliance of the

order.”

Echoing similar views, Greater Noida Authority‟s CEO Narendra Bhooshan said, “Our legal team is

also in the process of reviewing the judgment and there are doubts in some sections. We still have to

decide on how we will go about our future course of action.”

According to the top court‟s order, the dues of Noida Authority till April 2019 are Rs 2,191.38 crore

and that of Greater Noida Authority Rs 3234.71 crore as on January 1, 2019. Further, according to the

court, there are 12 properties of the developer that have been attached and can be sold by the

authorities towards their dues.

“But the list of attached properties in the order is not sufficient for clearing of dues of the authorities.

While the order is just for buyers, not making provisions for the authorities‟ dues may only worsen

their financial positions and hamper public work,” said an official from Noida Authority.



Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-to-move-sc-on-rs-5400-crore-amrapali-dues/70506719

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Eleven years on, DLF Express Greens home buyers yet to get possession

The project is one of the three affected by Manesar land scam.

Almost 11 years after the launch of DLF Express Greens in Manesar, a large number of buyers of

the residential project are yet to get possession of their homes.

The project is one of the three affected by Manesar land scam.

Homebuyers in the project say they are stuck between Haryana State Industrial and Infrastructure

Development Corporation (HSIIDC) and DLF, waiting for the verification of their claims more than a

year after the Supreme Court deadline.

The court had directed HSIIDC in March last year to verify the homebuyers‟ claims within two

months. The industrial body was also asked to either complete the projects and hand over the homes

to the buyers or refund them their money as applicable.

“But even after 15 months of the SC judgment, HSIIDC has not done anything. It is a paradox that on

one hand, SC is asking public sector companies to take over stalled projects and on the other hand,

HSIIDC is adding to our misery,” said Raj Rathi, one of the buyers.

Mukul Bajaj, who is heading the buyers‟ representations with HSIIDC and DLF, added, “Unless our

claims have been verified, we are not even a rightful owner of the flats. The process should have been

completed more than a year back. We have no clarity from the developer or the HSIIDC on the issue

yet.”

Meanwhile, the construction of the clubhouse and the other finishing work are still pending and

homebuyers are unsure whether DLF or HSIIDC will complete the pending work.

HSIIDC‟s MD Narhari Banger said the verification of claims is under process. “There are two parts to

the claim verification, one from the allottees‟ end and the other from the developer‟s end. While the

allottees have submitted the claims, the developer is yet to submit the requisite information,” said

Banger.

“DLF is constantly communicating with us and we expect the process to be completed soon,” he

added.

The developer said it has submitted all the required details from its end. “We have submitted all the

information required and it can be validated from the fact that more than 600 houses have been



Link https://realty.economictimes.indiatimes.com/news/residential/eleven-years-on-dlf-express-greens-home-buyers-yet-to-get-possession/70506824

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already handed over and 70 families are already living there. The delay in the verification is not from

our end,” said a DLF spokesperson.

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Moody's downgrades Lodha Developers to B3; Outlook negative

The company intends to repay the Lincoln Square construction loan maturing in December

2019 out of collections from sales made at the property to date.

Ratings agency Moody's Investors Service has downgraded the corporate family rating of Macrotech

Developers (MDL) --formerly known as Lodha Developers--to B3 from B2.

Moody's has also downgraded the senior unsecured rating of the US dollar-denominated bonds issued

by Lodha Developers International Ltd (LDIL) and guaranteed by MDL to B3 from B2.

The outlook on all the ratings above is negative.

“The downgrade reflects heightened liquidity risk at MDL, because of the company's lack of sufficient

progress in refinancing its upcoming debt maturities," said Sweta Patodia, a Moody's Analyst.

MDL has a 250 million pounds construction loan with respect to Lincoln Square, one of its London

projects, maturing in December 2019, $324 million in bonds maturing in March 2020--after the $1

million buyback—and another 517 million pounds of construction loans maturing in March 2021.

The company intends to repay the Lincoln Square construction loan maturing in December 2019 out

of collections from sales made at the property to date. As of 30 May 2019, the company sold units

worth 270 million pounds at Lincoln Square. Deliveries have now commenced and for the delivered

units, collections have happened as per schedule.

For the balance units, as per market practice in London, 10-20% of the sales proceeds have been

received so far, Moody‟s said.

"MDL's initial plan to refinance the $324 million bonds through proceeds from equity stake sales in

London projects is now uncertain, while progress on commercial asset sales in India has also been

slower than what Moody's had expected and remains subject to further delays,” said Patodia.

Although LDIL has received terms of offer from one of the existing lenders for refinancing the

outstanding USD bonds, the loan agreement is yet to be executed and remains subject to finalization

of terms and due diligence.

“Our debt levels have to be seen in the context of the fact that our ready and near ready residential

inventory and receivables worth Rs 27,000 crore in India and Rs 11,000 crore in London and our

ready commercial assets worth Rs 2,000 crore more than adequately cover the debt levels,” said the

company‟s spokesperson.



Link https://realty.economictimes.indiatimes.com/news/industry/moodys-downgrades-lodha-developers-to-b3-outlook-negative/70497304

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She noted that the company has significant unencumbered land and under construction commercial

rental projects beyond this. The company is up to date on all the debt servicing of interest as well as

principal and some of its debts are pre-paid ahead of scheduled repayment.

The company has finalised term sheet to cover the entire payment of its USD bond due in March

2020.

“The Definitive Documentation on this facility should be in place in next 8 to 10 weeks, many months

before Bond Maturity. The above along with ongoing sales pipeline in London should put at rest any

concerns around repayment of US $ Bonds,” the spokesperson added.

According to Moody‟s, even though the company has made progress on its refinancing efforts, it

needs to progress further to mitigate the near term liquidity risk. The onshore operations in India also

have Rs 2,670 crore or $381 million debt maturing over the next 12 months.

Moody's expects MDL's onshore debt to be rolled over, given the company's track record of rolling

over these facilities in the past, and its large unencumbered land bank at Palava, which could be

pledged to raise additional debt.

Apart from the material refinancing risks outlined above, MDL's B3 corporate family rating (CFR)

reflects its position as the leading developer of residential properties in India and the large size of its

land bank. The CFR also takes into account the high quality of its projects under construction

combined with its strong execution capability.

In addition, the CFR is supported by the diversity of the company's project portfolio across India and

London. In India, its projects are spread across a wide price spectrum and are in different stages of

construction.

However, MDL's credit profile is constrained by its weak liquidity position. The ratings also

incorporate governance risks arising from the company's concentrated ownership structure and its

aggressive financial policies.

The negative outlook reflects the uncertainty over the refinancing of MDL's upcoming debt maturities.

Moody's would revise the outlook to stable if the company can put in place a concrete refinancing

plan for its upcoming maturities.

Moody's also cautioned that it could downgrade the ratings if MDL fails to arrange for definitive

funding sources to refinance its upcoming debt maturities within the next three months to address its

upcoming debt maturities.

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NHB infuses Rs 10,000 crore in housing finance companies

National Housing Bank is making available a liquidity infusion facility of Rs 10,000 crore for

housing finance companies as additional liquidity from today.

The National Housing Bank (NHB) is infusing an additional Rs 10,000 crore in NBFCs from Friday

with a view to improve flow of funds for housing loans, said a finance ministry statement.

"To further ease flow of funds to the housing sector, the NHB is making available from today, a

liquidity infusion facility of Rs 10,000 crore for Housing Finance Companies (HFCs) as additional

liquidity for individual housing loans, for affordable housing," the statement said.

This facility will be over and above the existing finance schemes of the housing sector regulator NHB.

The statement further said subsequent to the budgetary announcements, the RBI has unveiled a slew

of measures for banks to avail additional liquidity of Rs 1.34 lakh crore.

"Now...the backstop guarantee to banks for NBFC portfolios taken over by them has become

effective. Banks will be utilising this guarantee support as per the contours of the scheme," it said.

Finance Minister Nirmala Sitharaman had announced in the Budget that the government would

provide one-time six months partial credit guarantee to public sector banks for the "first loss of up to

10 per cent" to enable them purchase pooled assets of financially sound NBFCs amounting to Rs 1

lakh crore.

"This would ease the liquidity stress in the NBFC sector and increase the access of these NBFCs to

bank finance, and, in turn, enable them to continue to play their role in meeting the financing

requirement of the productive sector of economy," the ministry added.

Meanwhile, the government has received a proposal from the Reserve Bank on the draft modalities of

the guarantee to operationalise the Budget announcement.

The ministry further said the government has accorded its approval to the modalities that would be set

in motion by the RBI.

"The Department of Financial Services would put in place an oversight mechanism for the scheme," it

added.

The NBFC sector has been facing liquidity issues after one of the largest shadow banks in the country,

IL&FS Group defaulted on loan payment.



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Oyo co-living to provide housing to IIT-Delhi students

IIT-Delhi has around 1,000 more students, thanks to government requirements on admissions

from economically weaker sections (EWS) as well as the directive on creating supernumerary

seats for women.

In a first-of-its-kind deal, a unicorn hospitality chain will house students of a bluechip higher

education institute. IIT Delhi, which is substantially increasing its student intake and facing hostel

space crunch, is housing around 500 students in an Oyo co-living facility near the campus.

IIT-Delhi has around 1,000 more students, thanks to government requirements on admissions from

economically weaker sections (EWS) as well as the directive on creating supernumerary seats for

women. IIT-Delhi director V Ramgopal Rao confirmed the new student living arrangements to ET.

SoftBank-backed Oyo did not respond to a questionnaire sent by ET.

“This is the first time around 500 students will be accommodated outside the campus… the existing

infrastructure is not sufficient,” Rao said. IIT-Delhi has entered into a formal agreement for

accommodation with Oyo, he said. He also said the number of students getting accommodated outside

the campus may rise in future.

The EWS category was added this year. The supernumerary category for women students was added

in 2018. IIT-Delhi will have a 10,000-strong student body this academic year for its B-Tech, M-Tech

and PhD courses. As more students are housed in privately run co-living facilities, costs for institutes

such as IIT will go up. Currently, most students in the co-living space are post-graduates. Women

students have been given on-campus accommodation.

IIT charges Rs 1,500 per student per month for hostel accommodation. Rao said per student-per

month cost of accommodation in the Oyo facility is Rs 6,500. The extra cost is being borne by IIT. A

specific question to Oyo on the accommodation charges was not answered. “We will be losing money,

but there is no other option… until our own hostels are ready,” Rao said.

IIT-Delhi currently puts two students in what were originally single-occupancy rooms, and double-

occupancy rooms now house three students.

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Taking measures to protect home buyers: Centre tells SC

The Centre’s proposal intends to attract other companies to make a bid to take over a company

facing insolvency proceedings.

Prodded by the Supreme Court to frame policy to protect the interests of homebuyers, the Centreon

Thursday told the court it is taking steps to rescue real estate companies facing insolvency

proceedings and holding consultations with various ministries to chalk out a plan.

Appearing before a bench of Justices A M Khaneilkar and Dinesh Maheshwari, additional solicitor

general Madhavi Divan informed that the government has introduced a bill in Parliament to amend

Insolvency and Bankruptcy Code to smoothen the insolvency proceedings and the finance ministry

will also be holding a meeting on Monday to take a decision on giving tax concessions to beleaguered

real estate firms to lessen their liability.

The Centre‟s proposal intends to attract other companies to make a bid to take over a company facing

insolvency proceedings.

The ASG made her submission while arguing on a batch of petitions filed by Jaypee home buyers.

She pleaded the bench to defer the hearing for a few weeks during which the government would take a

final decision.

But senior advocates Fali S Nariman and Anupam Lal Das, appearing for Jaiprakash Associates,

insisted that the court should hear its plea against the NCLAT order allowing third round of bidding

for Jaypee Infratech under IBC. The bench will hear its plea on Friday.

Nariman told the court that NCLAT order is illegal as it had no jurisdiction to allow insolvency

proceedings beyond the mandatory 270 days which expired in May.

NCLAT's order came after lender banks rejected the resolution plan of state-owned NBCC and

Suraksha Realty in the second round of bidding.

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Vatika Group sells food startup to focus on realty, hotel businesses

The company sold 14 operational outlets and nine in pipeline to a Delhi-based high networth

individual, said Gaurav Bhalla, MD, Vatika Hospitality business.

Vatika group, which is into real estate and hospitality business, on Thursday announced sale of its

food startup 'Nukkadwala' to focus on core businesses. The size of the deal was not disclosed.

The company sold 14 operational outlets and nine in pipeline to a Delhi-based high networth

individual, said Gaurav Bhalla, MD, Vatika Hospitality business.

"The group needs much larger time and focus on managing and growing its real estate and hospitality

business. It was felt that hiving off Nukkadwala makes a lot of sense at current times, where it is very

well received as a brand and is all set for exponential growth, while we focus on our core businesses,"

he added.

The food start-up, which focused on street foods, did a business of about Rs 9 crore during the last

financial year, Bhalla said.

Vatika Group has developed residential and commercial real estate projects in Gurgaon, Jaipur, and

Ambala. It own two hotels in Gurugram, Haryana.

The group has integrated facility management business under 'Enviro' brand that manages more than

77 million sq ft area across 8 cities. It operates 'Vatika Business Centre', offering more than 6,000

seats across nine cities.

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SC orders status quo for two weeks on insolvency resolution process of

Jaypee

"We have not seen the amendment, let it come and we will see," the bench said adding that the

resolution plan will have to be made on the basis of the amendment.

The Supreme Court Friday ordered status quo for two weeks on the insolvency resolution process

on Jaypee Group's plea which has challenged the NCLAT order allowing fresh bidding for debt-

laden Jaypee Infratech.

A bench of justices A M Khanwilkar and Dinesh Maheshwari passed the order after the apex court

was informed that Parliament had passed the proposed amendments in the Insolvency and Bankruptcy

Code and President's assent is awaited.

"We have not seen the amendment, let it come and we will see," the bench said adding that the

resolution plan will have to be made on the basis of the amendment.

Earlier, Additional Solicitor General Madhavi Divan had told the bench that Parliament is considering

the amendments in Insolvency and Bankruptcy Code (IBC), which will address various concerns of

homebuyers.

She said that another meeting of various stakeholders with the Finance Ministry is also scheduled to

be held on August 5 to resolve taxation and other issues.

On July 30, the NCLAT had allowed fresh bidding for the cash-strapped Jaypee Infratech but barred

its promoter Jaypee Group from participating in the auction.

To enable the fresh bidding process, the NCLAT extended the resolution period of Jaypee Infratech

for another 90 days, which includes a 45-day window for the resolution professional (RP) and lenders

of the debt-ridden firm to invite fresh bids.

The NCLAT direction came in view of lenders rejecting the resolution plan of state-owned NBCC and

Suraksha Realty in the second round of bidding.

Jaypee Infratech went into insolvency in August 2017 after the National Company Law

Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.

In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep,

part of Suraksha Group, was rejected by lenders.



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The NCLAT had asked state-owned NBCC, whose bid was rejected by the CoC of Jaypee Infratech,

to submit fresh resolution plan for the debt-ridden company.

The appellate tribunal has also rejected the plea of Jaiprakash Associates Ltd, the promoters of Jaypee

Infratech, to be eligible to submit a bid.

On June 18, the Centre had informed the apex court that fresh amendments to the IBC give

appropriate weightage to homebuyers to protect their interest.

The Lok Sabha on earlier passed amendments to the Insolvency and Bankruptcy Code, with the

government asserting that the spirit behind the law is not to allow companies to die.

Rajya Sabha has already passed the bill and with its passage in the lower house, the Insolvency and

Bankruptcy Code is set to be amended.

The top court had earlier said it may use its plenary power under Article 142 of the Constitution to

protect the interest of over 21,000 homebuyers in the JIL case, if their grievances are not addressed.

The court is hearing a plea which has sought that JIL be not sent into liquidation, although the

deadline for the corporate insolvency resolution process is over, as it would cause "irreparable loss" to

thousands of homebuyers.

On August 9 last year, the apex court ordered re-commencement of the resolution process against JIL

and barred the firm, its holding company and promoters from participating in fresh bidding process.

It allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution

proceedings (CIRP) against Jaiprakash Associates Ltd (JAL), the holding company of JIL, under the

IBC.

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DSP Mutual Fund initiates legal action against DHFL for recovery of

dues

“We reiterate that the legal proceedings are not initiated to disturb the ICA process,” the fund

house said in the communication.

DSP Mutual Fund has initiated legal action against Dewan Housing Finance Corporation for recovery

of dues. However, the fund house has said that it has not done anything to disturb the Inter-Creditor

Agreement process. According to the fund house, DSP Mutual Fund had an exposure of Rs 150 crore

to commercial papers issued by DHFL with scheduled maturity on June 25, 2019.

The fund house said in a written communication that DHFL made a part payment of Rs 60 crore on

25th June 2019 (equivalent to 40 per cent of outstanding exposure). “Subsequently, DHFL shared a

press release on 25th June, stating that the balance amount shall be paid in next couple of days,” says

DSP MF.

The fund house says that it received further 10 per cent of the total outstanding amount on 29th June;

implying 50 per cent of dues remaining unpaid. Now, the legal proceedings are related to the

remainder of the dues which were communicated to be paid but were not.

“We reiterate that the legal proceedings are not initiated to disturb the ICA process,” the fund house

said in the communication.

Unlike banks, mutual funds are not formally bound by the ICA. Debenture holders of DHFL had

agreed to sign an inter-creditor agreement in July. Out of 27 banks, 22 have signed the ICA.

According to reports, in the past nine months, DHFL has securitised home loan assets worth over Rs

40,000 crore. Bondholders have Rs 45,000 crore of exposure to Mumbai-based DHFL, while high-

street lenders have loaned DHFL another Rs 35,000 crore.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/dsp-mutual-fund-initiates-legal-action-against-dhfl-for-recovery-of-dues/70498355

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DTCP to close guesthouses flouting rules in Gurugram

Senior town planner Sudhir Chauhan has ordered a survey of the city’s licensed colonies in

order to identify illegal guesthouses running in contravention of the new policy.

Illegal guesthouses operating out of upscale licensed colonies like DLF areas, Sushant Lokand South

City have once again come under the scanner of the department of town and country planning

(DTCP). These guesthouses will soon face shutdown if they don‟t follow the mandatory norms,

according to the authorities.

Senior town planner Sudhir Chauhanhas ordered a survey of the city‟s licensed colonies in order to

identify illegal guesthouses running in contravention of the new policy. Five teams of junior engineer-

level officials of the planning and enforcement wing of the department will complete the survey

within a month, following which the department will initiate action against them.

Chauhan, in his order to district town planners, made it clear that the department is all set to cancel the

building plans and occupation certificates of illegal guesthouses. “The five teams of junior engineers

have been directed to share daily report and complete the survey within a month,” he said.

There are around 1,000 guesthouses in Gurugram which are not following the mandatory criteria and

haven‟t got required permissions. Sources said officials of Gurugram circle have been directed by

higher authorities to ensure that these illegal guesthouses are shut and those following the norms have

been regularised.



Link https://realty.economictimes.indiatimes.com/news/industry/dtcp-to-close-guesthouses-flouting-rules-in-gurugram/70494449

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On Saturday, the DTCP reduced the required minimum plot size from 1,000 sq yards to 500 sq yards

for setting up guesthouses in residential zones. It also removed the cap on the number of guesthouses

allowed in a residential sector; earlier a sector could have a maximum of two guesthouses. Also, as

per the earlier rules, such facilities could not be on plots smaller than 1,000 sq yards. According to

sources, areas like DLF 1, 2 and 3, Sushant Lok 1 and South City among others have witnessed

mushrooming of guesthouses in the last few years.

Illegal guesthouses generate around Rs 300 crore a year, causing a major dent to the state exchequer.

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Prestige Estates' net profit dips 5% in Q1 FY20

An undisclosed land owner owes Rs 92.30 crore to Prestige Estates with which it entered into a

joint development agreement, according to the company's BSE filing.

Prestige Estates reported a dip of 5 per cent in its net profit during the quarter ended June 2019. The

company's profit after tax (PAT) stood at Rs 123.90 crore as against Rs 130.40 crore it registered in

Q1 FY19.

Its net income stood at Rs 1,567.40 crore during the said quarter, a growth of 80 per cent from Rs

868.6 crore it recorded in the similar quarter last year.

The company appointed Neelam Chhiber as additional Director in the capacity of non-executive,

independent for a period of five years with effect from August 1, 2019.

During the quarter ended June 2019, it acquired control by acquiring the balance 51% stake in Babji

Realtors from various JV partners/shareholders for Rs 364 crore.

The group has accounted fair value gain on previously held interest in jointly controlled entities as an

exceptional item amounting to Rs 38 crore.

An undisclosed land owner owes Rs 92.30 crore to Prestige Estates with which it entered into a

joint development agreement, according to the company's BSE filing.

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HCC reports net loss of Rs 17.44 crore in Q1 FY20

The company reported net income of Rs 2472.78 crore in the said quarter, a growth of 6 per

cent from Rs 2327.84 crore it recorded in the similar quarter last year.

Hindustan Construction Company (HCC) reported a net loss of Rs 17.44 crore in Q1 FY20 as

compared to a net loss of Rs 66.06 crore in Q1 FY19.

The company reported net income of Rs 2472.78 crore in the said quarter, a growth of 6 per cent from

Rs 2327.84 crore it recorded in the similar quarter last year.

HCC's order book stood at Rs 17,721 crore as of June 30, 2019. Gross debt of the company reduced

quarter-on-quarter by Rs 134 crore.

Un-billed work-in-progress (other current assets), non-current trade receivables and current trade

receivables include Rs 419.30 crore, Rs 54.14 crore and Rs 321.89 crore, respectively, outstanding as

at 30 June 2019 which represent various claims raised earlier, the company said in a BSE filing.

The group as at 30 June 2019 has a non-current investment amounting to Rs 112 crore in HCC

Concessions (HCL), a joint venture company of HCC Infrastructure Company (HICL) (85.45%

holding), a wholly owned subsidiary, having various Build, Operate and Transfer (BOT) SPVs under

its fold, the company said in the regulatory filing.

While HCL has incurred losses and consolidated net-worth as at 30 June 2019 has been substantially

eroded, the underlying projects are expected to achieve adequate profitability on substantial

completion, it said further.

HREL Real Estate (HREL), formerly known as HCC Real Estate, a wholly-owned subsidiary of the

holding company, which presently holds 68.70% equity stake in Lavasa Corporation(LCL).

HREL made all efforts to obtain requisite standalone and consolidated financial results of LCL

and its subsidiaries, associates and joint ventures for the period 1 April 2018 to 30 June 2018 as

well as for the period 1 April 2018 to 30 August 2018 through appointed RP, for which no

response was received from RP, the company said in its BSE filing.

HREL has provided corporate guarantees and put options and presently outstanding, aggregating to Rs

4,040.86 crore (including interest) to the lenders of its erstwhile subsidiaries, LCL and Warasgaon

Assets Maintenance (WAML) in respect of amounts borrowed by these subsidiaries. LCL and WAML

were admitted under the Corporate Insolvency and Resolution Process (CIRP) dated 30 August 2018

and 17 December 2018, respectively



Link https://realty.economictimes.indiatimes.com/news/industry/hcc-reports-net-loss-of-rs-17-44-crore-in-q1-fy20/70501361

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RP is in the process of formulating a resolution plan including identifying potential resolution

applicant. The liability of the HREL shall be determined once the debts due to these lenders are settled

by RP upon completion of the IBC process.

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Eldeco Housing and Industries' net profit up 62% in Q1 FY20

The company's total income stood at Rs 44.51 crore during the said quarter, a growth of from rs


Eldeco Housing and Industries reported a growth of 49 per cent in its net profit during the quarter

ended June 2019. Its profit after tax (PAT) stood at Rs 9.70 crore as against Rs 6.51 crore in Q1

FY19.

Pankaj Bajaj, chairman and managing director of the company said, "The headwinds for the real estate

sector continue. Customers have become extremely cautious after the recent failures of some high

profile companies in the sector. They are gravitating towards quality names with said track record of

delivery."

The company's total income stood at Rs 44.51 crore during the said quarter, a growth of from Rs


The board recommended the re—appointment of Ashish Jain, Ranjit Khattar and Anil Tiwari as

independent directors for a second term of five years.

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Link https://realty.economictimes.indiatimes.com/news/industry/eldeco-housing-and-industries-net-profit-up-62-in-q1-fy20/70499761

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Sri Lanka PM hands over redeveloped homes built by Tata Housing

The investment in the project - for redevelopment of century-old, high density dwelling units

and shops - was around LKR 7,000 million.

Sri Lankan Prime Minister Ranil Wickremesingheon Thursday handed over well-built houses with all

modern amenities to 626 families and fully developed commercial spaces to around 114 shop owners -

built by India's Tata Housing as the first part of its One Colombo Redevelopment Project.

The investment in the project - for redevelopment of century-old, high density dwelling units and

shops - was around LKR 7,000 million. The unique project by Tata Housing has ensured re-housing

of the existing community in a residential complex with improved infrastructure.

The first phase of the Slave Island Redevelopment Project, Metro Homes was inaugurated on

Thursday and handed over to the beneficiaries by Wickremesinghe.

Wickremesinghe thanked the Indian Government for the development partnership assistance over the

years.

He specially mentioned the visit of Prime Minister Narendra Modi to Sri Lanka after the Easter

attacks, which provided a big boost to the confidence in Sri Lanka. He looked forward to further

strengthening the connectivity and people-to-people ties between both the countries, Colombo Gazette

reported.

Minister of Megapolis and Western Development, Patali Champika Ranawaka, Minister of Power,

Energy & Business Development of Sri Lanka, Ravi Karunanayake, High Commissioner of India to

Sri Lanka, Taranjit Singh Sandhu, Member of Parliament, Mujibur Rahuman, MD & CEO, Tata

Housing, Sanjay Dutt and other dignitaries were present on the occasion.

The Indian High Commissioner thanked the Government of Sri Lanka for giving the status of

Strategic Development Project to this project.

Sandhu pointed out that this was yet another manifestation of the confidence that Indian firms have in

the Sri Lankan economy.

He stressed that India and Sri Lanka are going through a phase of rapid urbanization and that there

was a need to ensure smart development of cities with due emphasis on "inclusivity and

sustainability".



Link https://realty.economictimes.indiatimes.com/news/residential/sri-lanka-pm-hands-over-redeveloped-homes-built-by-tata-housing/70491248

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DDA flats at lower rates for war widows in Rohini & Narela

Apart from war widows and recipients of gallantry awards of defence and paramilitary forces,

persons who have got injured or disabled during action or war are also eligible for the housing

scheme

Delhi Development Authority is going to sell flats in Rohini and Narela at a concessional rate to

widows of soldiers who died in wars and recipients of gallantry awards of defence and paramilitary

forces. The flats will be provided on a first-come-first-serve basis as part of an online housing scheme,

which will be launched on Friday at 3pm.

The land-owning agency will allot the one-bedroom flats on freehold basis at a concessional cost of

Rs 7 lakh, apart from conversion charges of Rs 28,080. These flats are located in Sector 34 and Sector

35 in Rohini and Sector G2 and Sector G8 in Narela. The plinth area of the flats on offer varies from

33.2 square metres to 33.8 square metres approximately.

Apart from war widows and recipients of gallantry awards of defence and paramilitary forces, persons

who have got injured or disabled during action or war are also eligible for the housing scheme. The

scheme, however, is restricted to only non-commissioned and non-gazetted personnel. Applicants will

have to submit certificate issued by the Union ministry of defence/armed forces/paramilitary forces to

prove their eligibility.

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Link https://realty.economictimes.indiatimes.com/news/residential/dda-flats-at-lower-rates-for-war-widows-in-rohini-narela/70494905

03-august-2019 - credai...

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