06 - 07- 2020

#EtaiBestTime Campaign

Dear Friends,

The results of the #EtaiBestTime campaign is already picking up pace:

Brief results of the campaign are as follows:

From average traffic of 182 we have reached 4.6k in 3 days which is a 21% increase in sessions

per user.

So keep uploading all your projects on www.credaibengalhomes.com for quality leads.

Regards,

Nandu Belani

CREDAI Bengal Daily News Update | 06.07.20

RERA authorities pitch for one-time debt recast in realty; ask

builders to comply with orders

Addressing a webinar, he said the decision to extend timelines for completion of projects

by six months has been taken for the benefits of homebuyers and ensure customers get

possessions of their flats.

“Consumers see RERA as an effective recourse if something goes wrong,” he added.

(Representative image)

Real estate regulators will write within a week to the RBI, seeking one-time debt restructuring

for the industry to help developers overcome the liquidity issues, Uttar Pradesh RERA

Chairman Rajive Kumar said on Saturday.

Industry bodies CREDAI and Naredco have been demanding one time restructuring of

developers outstanding loans with financial institutions to prevent bad loans and making them

eligible for fresh borrowings.

Newspaper/Online Financial Express ( online )

Date July 04, 2020

Link https://www.financialexpress.com/industry/rera-authorities-pitch-for-one-time-

debt-recast-in-realty-ask-builders-to-comply-with-orders/2013332/

Addressing a webinar, he said the decision to extend timelines for completion of projects by six

months has been taken for the benefits of homebuyers and ensure customers get possessions of

their flats.

Kumar asked developers not to impose any penalty on homebuyers for any default in payments

of their installments during this coronavirus pandemic.

“One big issue faced by the industry is liquidity challenge for quite some time,” he said, adding

that many stalled projects do not qualify for getting last mile funding from the Rs 25,000 crore

special window created by the government.

All India Forum of Real Estate Regulatory Authorities (AIFORERA) has decided to take up the

issue of one-time debt restructuring with the RBI, said Kumar, who is the Chairman of this new

association.

He informed that the forum will write to the Reserve Bank of India in the coming week.

The UP-RERA chief was speaking at a webinar organised by property magazine Realty & More

and public relation firm ICCPL on completion of three years of realty law RERA.

Kumar also warned builders to comply with the orders passed by the authorities, else it would

be forced to take action as per the provisions under the law.

On hombuyers grievance that builders got relief from regulators and not them, the UP-RERA

chief said the extension of timeline for projects completions would ensure that flat owners get

keys of their dream home.

Kumar asked builders not to levy any penalties or charge interest for any delayed payment by

their customers during this pandemic and also assured that this factor would be kept in mind

while passing the orders.

Speaking at the event, PropTiger and Housing.com CEO Dhruv Agarwala said the RERA has

been a “massive boon” for the entire real estate eco-system and helped immensely in bridging

the trust deficit between the developers and property buyers.

“Consumers see RERA as an effective recourse if something goes wrong,” he added.

Quoting a survey done by Housing.com, Agarwala said that 81 per cent of respondents want to

buy ready to move in flats or ones nearing completion , reflecting distrust in consumers mind

towards builders.

Supertech Chairman R K Arora said a regulator was needed in the sector and the RERA law has

helped in trust building.?

Gulshan Homz Director Deepak Kapoor said the RERA has brought financial discipline in the

development of real estate projects.

Gaurs group MD Manoj Gaur said the law has brought credibility in the sector and developers

feel proud in saying that their projects are registered under this law.

He, however, suggested that the government’s development authorities and financial institutions

should be brought under the ambit of RERA to make everyone accountable.

Bhutani group CEO Ashish Bhutani said the RERA has brought transparency in the real estate

sector and the developers do not have to make extra efforts to market products to prospective

buyers, especially NRIs.

RERA expert Venket Rao said the complaints of home buyers could rise due to the current

pandemic and efforts need to be made to resolve them amicably.

_____________________________________________________________________

Revenue share emerges as preferred structure for co-living

operators, property owners

While the model existed even earlier, most deals were then concluded with fixed lease

commitments and minimum guarantees assured by the operators.

The ongoing Covid-19 pandemic has started to prompt changes in business models of co-living

operators as most of the new deal conclusions and negotiations for prospective transactions are

focusing on revenue share structures with landlords.

While the model existed even earlier, most deals were then concluded with fixed lease

commitments and minimum guarantees assured by the operators. In the new business

environment, revenue share structure has emerged as the most favored as indicated by all the

deals that are concluding with this clause.

“There’s certainly a change in mindset post Covid-19. Pure revenue share structures are on the

rise as none of us are acting as a buyer or seller in the deal anymore, we are partners now,” said

Jitendra Jagadev, CEO of The Hello World, a subsidiary of NestAway Technologies that counts

Goldman Sachs and Tiger Global among its investors.

The company has acquired around 5,000 beds in the last 2.5 month taking its portfolio to 20,000

beds and according to Jagdev, all of this new capacity has been added through pure revenue

share structure.

In the current environment, many landlords found out the hard way that fixed lease

commitments and minimum assurance of payout clauses are as good as the balance sheet of the

underwriter and therefore are keen on revenue share deals.

“The right way forward for the asset light co-living operator is the revenue share with no

guarantees that will become common practice but landlords will partner with brands that can

deliver on their promises. This will be a new normal and sustainable model,” said Kahraman

Yigit, CEO of Olive by Embassy.

Yigit highlighted an example of the hospitality industry, where international hotel brands never

lease buildings, but instead prefer either management agreement or license their brand as

franchise and nobody guarantees anything.

The profitability of a co-living operator also varies based on the type of business model

Newspaper/Online ET Realty ( online )

Date July 06, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/revenue-share-

emerges-as-preferred-structure-for-co-living-operators-property-owners/76805564

adopted. While few operators followed a fixed rental arrangement earlier, now all of them

prefer an asset-light revenue sharing arrangement.

In India, shared rental accommodations including co-living and student housing are still in their

early stages and have seen several operators mushrooming over the last few years to tap the

demand. In the absence of a regulatory framework, various business models have emerged in

the market.

Most co-living operators in India have so far adopted the strategy of leasing residential units or

an entire block from a property owner, and sub-leasing individual rooms to end-users.

This allows them to scale up fast, without any assurance of the continued availability of the

premises, as most such properties are taken up on fixed term lease.

Apart from this, management contract model, franchisee model and hybrid structure that

combines some of these options have also been prevalent in this segment.

________________________________________________________________

COVID-19 impact: Realtors look at new trends among home

buyers

"What has happened is that the pandemic has opened up a lot of opportunities for

developers and the people. Customers have understood the necessity of a home and for

developers it has opened up, if not luxury, budget segment residences", Akshaya Homes

Ltd founder T Chitty Babu told.

'Work From Home' due to COVID-19 enforced lockdown norms is seeing a trend of buyers

tightening their purse strings and opting for budget friendly residences rather than luxury

offerings, city realtors said. Those who earlier preferred 'paying guest' accommodation were

increasingly looking at owning an apartment to suit their budget.

"What has happened is that the pandemic has opened up a lot of opportunities for developers

and the people. Customers have understood the necessity of a home and for developers it has

opened up, if not luxury, budget segment residences", Akshaya Homes Ltd founder T Chitty

Babu told.

He said people have accepted that they live in challenging times and that they need to save

money. "Earlier they were stretching their budget for bigger apartments, but are now going in

for properties within their budget", he said.

The younger generation was moving towards urban locations and giving up the 'paying guest'

concept of sharing living space with others he said.

"They do not want to live with strangers and this has opened up a lot of opportunities for home

buyers. They look at making purchases of houses if it suits their budget." Chitty Babu said work

from home could have a short-term impact on commercial properties and that companies

located located in big complexes may move to smaller places. He said WFH is now not a

preferred option as there was no public transport and there is an increase in COVID-18 cases

"But if productivity is good, then it is good for employers. At the same time, we have to see

about infrastructure...whether there is right Internet bandwidth, connectivity... those things are

there" he said.

People prefer to buy residential properties like 2.5 bed rooms with additional spaces for work,

instead of the earlier 2BHK apartments to make sure they can work from home also if necessity

arises, he said.

Newspaper/Online Economic Times ( online )

Date July 05, 2020

Link

https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/covid-19-impact-realtors-look-at-new-trends-among-home-

buyers/articleshow/76796467.cms

Another city based realtor opined that work from home may impact relationships and office

atmosphere.

"In today's work from home scenario, relationships are getting destroyed and that is what we are

seeing in the internet. He may be a friend of someone in (social media platform) Facebook. But

he does not speak when he sees him in person. This is what is happening", Navin's Managing

Director D Kumar said.

This work concept has also resulted in human values were also 'taking a beating'and there was a

chance of relationships getting destroyed.

"You do not come to the office just to sit. A person may work for one company in an office, but

tomorrow he may quit and join another company by work from home. How are you going to

retain him?", he asked.

On new property launches, he said they would definitely get delayed. There was no point in

going in for it as existing projects are lying idle, he said. Investments made in these projects

would also take a hit, he said.

"We have invested in land, salaries, everything...," he said.

Olympia Group MD Ajit Kumar said, WFH would be a 'temporary phenomena' and once the

COVID-19 outbreak comes under control, people would start returning to work.

"By working from home, the performance of an individual may get impacted. He needs to have

an atmosphere and there must be some kind of recreation. WFH cannot substitute a formal

office atmosphere, he said Kumar said the company now has four projects in the city and

commercial projects may get affected due to the pandemic. "We expect two projects to be

completed this year," he said.

____________________________________________________________________________________________

Many houses still lack rainwater harvesting facilities in Jaipur

JDA had made it mandatory to construct rainwater harvesting facilities in houses built on

plot sizes of 300 square metre or above. But majority of residents have not constructed

such structures.

Even after a decade, the Jaipur Development Authority’s (JDA) guidelines on rainwater

harvesting facilities in houses seem to be only on paper.

With residents refusing to follow norms, the objective of tapping rainwater during this monsoon

will be a distant dream. JDA had made it mandatory to construct rainwater harvesting facilities

in houses built on plot sizes of 300 square metre or above. But majority of residents have not

constructed such structures.

The JDA was authorised to penalise houseowners who fail to comply, but officials are turning a

blind eye. The JDA enforcement wing had announced to impose a penalty of Rs 25,000 in 2011.

In nine years, neither a single inspection was carried out nor any notices issued to defaulters.

There was also a provision of seven days’ imprisonment. The punitive provisions, however,

have remained on paper.

“No notice has been issued to anybody for failing to set up a rainwater harvesting system during

my tenure,” admitted a senior enforcement officer.

The town planning department approves layout plans for group housing societies and multi-

storey buildings after ensuring that these would have rainwater harvesting systems.

However, no inspections have been made to ensure that the structure actually comply their

undertaking. The excess use of water in posh colonies, despite rules and regulations, and no

serious measures being taken to recharge groundwater may pose a serious threat to the city in

future. Areas such as Raja Park, Jawahar Nagar, Jhotwara, Adarsh Nagar and Janata Colony are

already in the dark zone for overexploitation of groundwater.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date July 05, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/many-houses-still-

lack-rainwater-harvesting-facilities-in-jaipur/76796918

Telangana minister assures government's support to builders

“Unlike other metros in the country, situation in Hyderabad is still better and impact on

various sectors is not alarming. The Telangana government will utilise this opportunity in

some sectors like pharma,” KTR said.

The Telangana government will take all possible measures for continued development of

Hyderabad metropolitan region even after the coronavirus pandemic has impacted the

construction activity to some extent, municipal administration minister KT Rama Rao said.

He said the state government had taken several measures to develop Greater Hyderabad in the

last six years.

The minister interacted with representatives of various developers and builders’ associations of

the city on Saturday and assured them that the government would continue to support them. He

thanked the contractors and developers who helped the migrant workers during the Covid-19

crisis.

“Unlike other metros in the country, situation in Hyderabad is still better and impact on various

sectors is not alarming. The Telangana government will utilise this opportunity in some sectors

like pharma,” KTR said.

The government was committed to developing the city and would strictly enforce the new

Municipal Act, he said and warned that action would be taken against builders for dumping

debris in lakes and water bodies.

The associations raised issues like easing of building and layout approvals, master plans and

cement prices. The minister assured that the government would consider their requests

positively and discuss with manufacturers on cement prices. KTR spoke to TS Mineral

Development Corporation officials on availability of sand and asked the authorities to see that

sufficient stocks of sand are made available.

He advised the builders to ensure safety of the workers at the sites.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date July 05, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/telangana-minister-

assures-governments-support-to-builders/76797024

Gugugram civic body's property tax collection hit due to Covid-19

Though the city’s infrastructure projects have got delayed due to the lockdown, officials

said, this “temporary revenue loss” will not have any major impact on the civic body’s

preparations for the upcoming monsoon.

The Covid-induced lockdown has caused a major dent in MCG’s revenues — it has not been

able to generate even 1% of its projected revenue for this fiscal in the first quarter.

Though the city’s infrastructure projects have got delayed due to the lockdown, officials said,

this “temporary revenue loss” will not have any major impact on the civic body’s preparations

for the upcoming monsoon.

In its budget, the civic body has pegged the revenue generation for 2020-21 at Rs 3,800 crore,

including Rs 1,900 crore through stamp duty, Rs 1,100 crore as property tax and Rs 340 crore

as recovery from private colonies. But MCG has been able to mop up only Rs 21 crore in the

last three months (April to June) from property tax collections, and water and sewerage charges.

As per MCG records, the civic body received Rs 9.41 lakh, Rs 3.32 lakh and Rs 18.33 crore in

the months of April, May and June, respectively, as property tax. Similarly the revenue received

from water and sewerage charges in first quarter is Rs 2.98 crore.

However, the civic body has not been able to generate any revenue from other major sources,

including purchasable FAR, advertisement tax, stamp duty, excise share, municipal tax and

recovery from private colonies. MCG is already struggling to recover property tax arrears of Rs

880 crore and stamp duty dues of Rs 1,500 crore.

MCG commissioner Vinay Pratap Singh told TOI that the temporary revenue loss due to the

Covid-19 lockdown would not have much impact on maintenance and other civic activities in

the city.

“The city’s infrastructure projects got slightly delayed due to lack of funds. But at this time, the

key focus is on pre-monsoon preparations like desilting of drains, repair of roads, checking the

functionality of rainwater harvesting systems across the city. These are being done on priority

basis to ensure there is no inconvenience to residents,” he said.

Singh also the civic body’s major share of revenue like stamp duty comes from the state

government. “It has got delayed and will come as and when the state government plans to

release the funds. Moreover, we have announced property tax rebate scheme, which is expected

Newspaper/Online ET Realty ( online )

Date July 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/gugugram-civic-

bodys-property-tax-collection-hit-due-to-covid-19/76784520

to boost the revenue and around Rs 600 crore is expected. Some other measures will also be

taken soon to generate revenue,” he said.

In order to recover revenue and encourage public to deposit property tax, the MCG also issued

an order stating that property owners who deposit tax by July 31 will get a rebate of 30%.

“Residents welfare associations which have more than 500 properties under their jurisdiction

will be given 5% of the total property tax deposited for cleanliness, waste segregation and

composting plant, if more than 80% of property owners deposit tax,” Singh added.

However, a senior MCG official said many of the projects envisioned in the corporation budget

could not be implemented due to the massive fall in revenue. “Some losses are of permanent

nature like revenue through renting out corporation assets such as shops, community centers

and auditoriums for private programmes, parking charges and others,” he said.

“The temporary losses in terms of property tax, purchasable FAR and advertisement fees can be

recovered once the restrictions are entirely lifted, but till then the corporation will face shortage

of funds,” he added.

________________________________________________________________

Telangana HC seeks explanation on transfer of funds into

construction workers' accounts

The HC bench questioned the counsel regarding why the funds had not been transferred

yet and asked for a reply within three weeks.

The Telangana High Court on Friday issues notices to Centre and the Union labour department,

seeking an explanation over the transfer of funds into the accounts of construction workers.

Meanwhile, it said that there have been no deaths due to starvation in the state.

The court was hearing a petition filed by Bharat building and construction workers welfare

association, which alleged that the funds have not been transferred yet.

“Though there is a statutory board with a separate fund to assist the construction workers during

the ongoing crisis, it has not come to the rescue of workers struck by hardships,” the petitioner

said, represented by Pusuluri Narayana Swamy.

The association has sought Rs 15,000 to be transferred to each of the workers immediately.

Newspaper/Online ET Realty ( online )

Date July 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/telangana-hc-seeks-

explanation-on-transfer-of-funds-into-construction-workers-accounts/76786553

The HC bench questioned the counsel regarding why the funds had not been transferred yet. and

asked for a reply within three weeks.

The petitioners told the bench that the workers are dying due to starvation and hence sought

immediate release of funds as an interim measure. Brushing aside this contention, the court said

that Telangana has been assisting people with 12kg of rice and Rs 1,500 financial assistance.

“We did not come across any one starving to death. Government is aware of the plight of its

people. It cannot be ignorant of the conditions of the workers. Lets wait and see what they say

in their counters,” the bench said.

________________________________________________________________

Will start hearing appeals against demolition orders: Haryana

assures HC

On account of vacancy, anybody aggrieved from the order passed by the director, town

and country planning department, Haryana regarding demolition of any building was not

able to file appeals against their grievance.

Haryana has given an undertaking to the Punjab and Haryana high court that the tribunal under

Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act,

1963 that hears appeals against the orders of the director, town and country planning

department, on demolition of buildings, would be made functional within four weeks.

The post of the chairman of the tribunal, which is occupied by a retired judge of the high court,

has been lying vacant since January this year. On account of vacancy, anybody aggrieved from

the order passed by the director, town and country planning department, Haryana regarding

demolition of any building was not able to file appeals against their grievance.

The matter had reached before the HC in the wake of a petition filed by Saroj and other

residents of Gurgaon district. The petitioners had sought directions to appoint the chairman and

judicial member of the tribunal, constituted under Section 12-C of the Punjab Scheduled Roads

and Controlled Areas Restriction of Unregulated Development Act, 1963.

The petitioners were owners of some land situated in Baslambim village in Gurgaon district and

had constructed residential houses and shops in the area. The petitioners submitted that they

were using this property for personal use. They contended that the DTP, Gurgaon had been

sending show-cause notices regularly to the village residents, who had constructed residential

houses on their own land outside the abadi deh area of the village. They also submitted that it

was very difficult for the residents of the Baslambi village to take CLU/licence from the

government for construction of residential houses/shops on their own land.

The petitioners had filed an appeal before the tribunal on June 29 against the notices. As there

was no member or chairman in the tribunal, the staff of the tribunal did not accept the appeals

for hearing.

During the hearing of the case on Friday before a division bench comprising Justice Rajan

Gupta and Justice Karamjit Singh, the counsel for the Haryana government gave an undertaking

that the tribunal would become functional within four weeks.

Newspaper/Online ET Realty ( online )

Date July 04, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/will-start-hearing-

appeals-against-demolition-orders-haryana-assures-hc/76797127

On this, the bench disposed of the matter making it clear that the notices issued to the

petitioners regarding demolition of their houses shall remain stayed till then.

The tribunal

The Haryana government had constituted a tribunal under Section 12-C of the Punjab

Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963 to

hear appeals against orders passed by the town and country planning department.

The chairman of the tribunal is a retired judge of the high court and it has two other members —

one should be a retired chief engineer with knowledge of roads and highways and the other a

professional from the fields like law, town and country planning, industry, management. The

tribunal, which can sit in Chandigarh or at any other place of convenience, can hear appeals

filed within 60 days of demolition notices issued by the town and country planning department

and the decision of the tribunal on such appeals shall be final.

The tribunal also hears cases involving construction up to April 28, 1995 in violation of the act

along scheduled roads and otherwise as if these were appeals against the order of the director.

Any case against the director passed under sub-sections 2 or 3 of the act pending in any court of

law except high court or Supreme Court is transferred to the tribunal.

________________________________________________________________

Check distance between building, power lines while issuing NOC:

Goa electricity department

“Fatal electrical accidents have occurred due to illegal storage structures or storage yards

below or in close proximity to the power lines,” it stated.

The electricity department has requested local bodies and planning authorities to ensure that

there are no structures in the vicinity of power lines to ward off accidents due to leakage and

contact with live wires.

In a letter to the director of panchayats, urban development, rural development, chief town

planner and chairmen of district planning authorities, the department has requested them to

issue NOCs for construction only if the prescribed distance is maintained between the proposed

structure and the power lines.

“It is observed that over time, structures have been constructed without maintaining the

minimum distance resulting in likely occurrence of electrical accidents due to leakage or direct

contact with the live wires,” the department stated in its advisory.

“Fatal electrical accidents have occurred due to illegal storage structures or storage yards below

or in close proximity to the power lines,” it stated.

The department has requested the local and planning bodies to follow the minimum prescribed

clearances according to the Electricity Rules 1956.

Where a low or medium voltage (up to 650 volts) overhead line passes above or adjacent to or

terminates on any structure, the minimum clearances from any accessible point must be on the

basis of maximum sag (Sag is the difference in level between points of supports and the lowest

point on the conductor).

For a flat roof, open balcony and verandah, a vertical clearance of 2.4m from the highest point

where the line passes over the structure and a horizontal clearance of 1.2m from the nearest

point when the line passes adjacent to the structure.

For a pitched roof, a vertical clearance of 2.4m immediately under the lines when the line

passes over the structure and a horizontal clearance of 1.2m from the nearest point when the line

passes adjacent to the structure.

Newspaper/Online ET Realty ( online )

Date July 05, 2020

Link

https://realty.economictimes.indiatimes.com/news/regulatory/check-distance-

between-building-power-lines-while-issuing-noc-goa-electricity-

department/76796967

Similarly, vertical clearances have also been prescribed for extra high voltage overhead lines

passing above or adjacent to a structure.

________________________________________________________________