16-Dec-2019

10-Oct-2019

06-Dec-2019

CREDAI Bengal Daily News Update | 16.12.19

Real Estate: Rs 25,000 crore booster likely to benefit this city the most

Rangarajan said the biggest beneficiary of AIF could be the MMR housing market, which has

more to do with the net-worth-positive state of delayed projects than their overwhelming

numbers.

The government’s move to create a dedicated fund for stalled housing projects will act as a catalyst for

the sector that has been facing severe liquidity crisis for the last few years, with the Mumbai

Metropolitan Region (MMR) expected to be the biggest beneficiary. This is because projects here are

more likely to meet the net worth positive and litigation-free criteria.

Liquidity could be cited as the single-biggest reason behind project delays in India and the Rs 25,000-

crore lifeline in the form of an alternate investment fund (AIF) would change much of that, said Mani

Rangarajan, chief operating officer of Elara Technologies, which owns real estate

portals Housing.com, Makaan.com and PropTiger.com.

“Housing projects in MMR are more likely to meet the net worth positive and litigation-free

conditions set under the AIF. This would mean a large part of the fund could be spent on completing

projects in Mumbai, as it is an expensive market and the cost of project completion here would be

comparatively lower than the ultimate price realisation. This would only help Mumbai’s case further,”

Rangarajan told FE.

The Union Cabinet had on November 6 cleared the structure of an AIF for the real estate sector with

an initial corpus of Rs 25,000 crore, with more inclusive terms and a commitment to continue to

provide more budget funds.

As per an analysis of the 10 prime residential markets, he said around 1,665 RERA-registered housing

projects with more than 4.5 lakh housing units are delayed by over five years and are likely to see

completion only after 2020. Of these, 880 projects constituting over 2 lakh units are in MMR. On the

Newspaper/Online The Financial Express (online)

Date December 15, 2019

Link https://www.financialexpress.com/industry/real-estate-rs-25000-crore-booster-likely-to-benefit-this-city-the-most/1794112/

other hand, a total of 125 projects are delayed across Noida, Greater Noida and Gurugram, consisting

of more than 1 lakh units.

“While the analysis does not point out the specific reason behind delay in these projects, majority of

the projects have been stuck owing to liquidity crunch, delays in approvals, a periodic ban on

construction activities and litigation,” he added.

Rangarajan said the biggest beneficiary of AIF could be the MMR housing market, which has more to

do with the net-worth-positive state of delayed projects than their overwhelming numbers. This also

has to do with the fact that a large number of delayed housing projects in the Delhi NCR would not

meet the criterion to get funds under the AIF.

“Real estate developers in Noida owed the city authority a whopping Rs 10,200 crore in dues in 2017.

The fact that outstanding dues may have doubled in the past two years casts serious doubts on their

net-worth positivity. Additionally, many developers here, including Amrapali, Jaypee, Unitech and 3C

Company, have been dragged into litigation over charges of delays and misappropriation of funds. The

Centre has clarified that projects that are seeing litigation in courts would not be considered under the

stress fund,” he added.

For a project to receive funding from the AIF, it has to be, among other things, net-worth positive,

which means that the completion cost and outstanding liabilities of these projects should exceed the

worth of the receivables and the unsold inventory in these projects.

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Maharashtra: Land title bill may have to wait a while

Sources in the revenue department had claimed that the entire process was likely to be delayed

because the new government had yet to allot portfolios to ministers.

The change in regime in the state has cast a shadow on the passage of the land titling bill, nearly

cleared by the previous government.

Sources in the revenue department had claimed that the entire process was likely to be delayed

because the new government had yet to allot portfolios to ministers. The bill would have to be put

forth before the new government for its passage, said another source in the revenue department.

Officials stated that the bill could be discussed in the upcoming winter session of the assembly. But its

passage was likely to take time with the new government formation.

The six-day winter session is slated from December 16.

The land title bill proposes to make all land records available in one office to give people easier access

to information. At present, records pertaining to immovable properties are available with different

agencies like registration department, and survey and land records department.

The previous state government had released a draft land titling act last year in June. But the erstwhile

cabinet could not clear it because of the elections.

Under the proposed bill, the title registration officer would carry out the process of preparing,

maintaining and updating land title register. Revenue officials stated that it would enable ease of doing

business and bring about transparency in the process.

At present, it is left to an individual to ascertain the title of a property.

______________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date December 16, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-land-title-bill-may-have-to-wait-a-while/72723883

Kochi civic body yet to implement construction waste bylaw

The draft bylaw was supposed to be applicable for all materials used for construction of

buildings and other structures.

Kochi Corporation had prepared a draft bylaw for ensuring proper disposal of building debris in 2016.

Though the city has undergone a construction boom, the local body is yet to implement it.

The draft bylaw was supposed to be applicable for all materials used for construction of buildings and

other structures. The bylaw makes it the responsibility of those generating the waste to collect,

segregate and treat it. The corporation should be informed about concrete, plastic, wood, gravel, sand,

bricks and cement waste that would be generated at the time of construction or demolition, according

to the draft bylaw.

Those constructing all structures other than individual households should submit construction

waste management plan before starting the construction to the corporation, along with the application

for building permits. The corporation will slap a fine of Rs 10,000 from builders who begin

construction without securing the approval.

Those generating such waste should store the waste under their custody and later dump it

at Brahmapuram. Materials like steel, bricks, metal and wood, which are reusable, should be used

again. Crushed concrete (granules), should be used for the construction of kerbs and pavements.

Those generating waste are also supposed to pay the corporation for its transportation. A fine of up to

Rs 20,000 will be slapped on those dumping waste in drains, canals or other public places. Chemical

waste, hazardous waste, coolants, oils etc should not be mixed with the construction waste, states the

bylaw.

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Newspaper/Online ET Realty (online)

Date December 15, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/kochi-civic-body-yet-to-implement-construction-waste-bylaw/72657277

Boshan Developers gets Bombay HC relief in building project

The company informed the court that it has spent Rs 9.5 lakh for the installation of the STP as

well as septic tank and soak pit for the building complex.

The high court of Bombay at Goa has declined Goa Foundation’s plea to stay the part occupancy

certificate granted by the Mapusa Municipal Council to Boshan Developers Pvt Ltd after noting that

the developers are in the process of installing a sewage treatment plant (STP).

The company informed the court that it has spent Rs 9.5 lakh for the installation of the STP and

showed the court photographs of the installation and stated that provision has been made for an STP as

well as septic tank and soak pit for the building complex. The developer also stated that an application

has also been made to the Goa Pollution Control Board for a full-fledged STP.

“There are photographs placed on record in respect of the STP. By now, the GSPCB has also issued

necessary consent to establish. While it is true that the STP is not yet operational since the same has to

be made fully operational after obtaining the consent to operate from the GSPCB, it cannot be said that

there are no arrangements whatsoever made for treatment of the sewage. There is a septic tank and

soak pit at the site,” the court stated.

The court noted that the existing regulations of the town and country planning board prima facie

exempt the developers from having a full fledged STP and added that the issue of validity of the

regulation will have to be examined in the petition.

Goa Foundation has challenged the regulations framed by the town and country planning board to the

effect that an STP is required only if the number of units in a building exceed 50. Advocate Norma

Alvares represented Goa Foundation.

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Newspaper/Online ET Realty (online)

Date December 16, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/boshan-developers-gets-bombay-hc-relief-in-building-project/72724255

Rajkot: Housing societies under PMAY all set to go green

One such solar-wind hybrid windmills can generate power up to 1.2 KW, which will be utilized

for common utilities of the housing society. This hybrid system can generate both wind and solar

power.

The housing societies built for the people of lower income group under the Pradhan Matri Aawas

Yojna (PMAY) are all set to go green. The Rajkot Municipal Corporation (RMC) on Saturday begun a

pilot project with installation of solar-wind hybrid windmills at one of projects on the Sant Kabir road,

know as Smart Ghar B Scheme.

One such solar-wind hybrid windmills can generate power up to 1.2 KW, which will be utilized for

common utilities of the housing society. This hybrid system can generate both wind and solar power.

According to RMC, this windmills five meter tall have been installed on the terrace of one of the seven

towers of Smart Ghar B Scheme. It has four batteries to store power for 24 hours.

If the operational at 100% capacity, the hybrid system will generate 10,000 units of electricity per

month that can power at least 35 street lights of 40 watt each.

RMC commissioner Udit Agrawal said “The green power will be used for common facilities like street

light and water works. If it is successful we will install similar hybrid systems in other towers also.”

Rajkot city engineer Alpna Mitra said, “Currently the power generated is off-grid and is stored using

batteries. Gradually we plant to connect it to the power grid of PGVCL so that we can get rid of

batteries and sell the extra electricity to discoms.”

RMC officials said that this arrangement will also ease the burden of society maintenance on the

members.

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Newspaper/Online ET Realty (online)

Date December 15, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/rajkot-housing-societies-under-pmay-all-set-to-go-green/72661248

Kochi civic body plans facility for construction debris recycling for

Maradu flats

The committee for solid waste management has also asked the corporation to allot 10 acres at

Brahmapuram for dumping the building debris.

The corporation is planning to set up a plant to recycling construction debris in the wake of the

proposed demolition of four apartment complexes in Maradu. The local body has mooted the proposal

after a state-level appraisal committee for solid waste management suggested setting up such a plant.

The committee for solid waste management has also asked the corporation to allot 10 acres at

Brahmapuram for dumping the building debris. The corporation authorities are waiting for the

approval of the council of the local body.

“It is important to have such a plant to dump construction and demolition waste. Kochi is a city, where

there are many apartment complexes and buildings and some of them have to be razed at the end of

their lifespan,” said V P Chandran, secretary, LDF parliamentary party, Kochi Corporation.

“We will have to think of setting up such a plan right now,” he said, adding that then only, the waste

generated from demolitions can be properly managed.

The corporation authorities, haven’t yet discussed about allotting 10 acres to dump the construction

waste at the health standing committee, which is responsible for designing and implementation of

projects related to treatment of waste.

“Normally, such issues should have been discussed at the standing committee. Such issues are usually

sent for the council’s consideration with the committee’s recommendations,” said Chandran, who is

also a member of health standing committee. Though TOI tried to contact mayor Soumini Jain and

corporation secretary Anu R S, they didn’t respond.

At the same time, locals have hit out at the proposal to set up one more waste treatment plant.

“Already, we have a solid waste treatment plant and a sewage treatment plant at Brahmapuram. There

is also a proposal for setting up a biomedical treatment plant by the Indian Medical Association,” said

Koyikkal Aboobacker, member, Vadavucode- Puthenkurishu grama panchayat, where Brahmapuram

is located. “Why do they set up all plants to treat the waste from the city at Brahmapuram?” he asked.

As of now, there are no plants operating in the state for treating building debris. “One such plant is

Newspaper/Online ET Realty (online)

Date December 15, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kochi-civic-body-plans-facility-for-construction-debris-recycling-for-maradu-flats/72660750

successfully operating in Delhi. Concrete, which accounts for a major share of construction waste, will

be crushed into granules. Iron rods, wood, etc will be segregated. Concrete granules can be used for

making pavement tiles. It can also be used for other constructions as well,” a corporation official said.

“The guidelines issued by the Union government allows using 20% granules in buildings,” he said.

______________________________________________________________________________________________________

High-rises in Andhra Pradesh flouts fire safety norms

The department has instructed all municipal corporations to prepare a report on fire

arrangements in place in the state.

The recent fire mishap in New Delhi’s Anaj Mandi exposed the blatant disregard for fire safety

norms across the country. Following the incident which claimed 43 lives, the state’ municipal

administration department decided to take stock of the fire safety arrangements in place.

In the process, it was revealed that of the 4,000 high-rises located under the jurisdictions of all

municipal corporations in the state only 1,400 have the required no-objection certificates (NOCs) from

the fire services department.

The department has instructed all municipal corporations to prepare a report on fire arrangements in

place in the state.

Speaking to TOI, a senior official of the municipal administration department said, “Of the 4,000

buildings in the state, only 1,400 have the mandatory NOC from the fire services department. Most

defaulters are colleges, hospitals and gated communities.”

Interestingly, the report says that all multiplexes and theatres in the state have the mandatory NOC.

In areas under the Greater Visakhapatnam Municipal Corporation (GVMC), at least 75 per cent

buildings do not have NOCs. An official informed that of the 250 colleges within GVMC limits that

need this NOC, only 50 actually have them. There are even some hospitals which do not have the

NOC, the official added.

Officials of the fire safety department too accepted that most buildings in the state do not adhere to fire

safety norms. This, according to them, is because of several loopholes in the Act, making it easy for

people to get away with flouting norms.

An official of the department said, “We have to follow a lengthy process to take steps against

defaulters. We have to issue notices between three to five times before taking any action.

“We have completed these formalities and initiated court cases against 20 buildings in Visakhapatnam

currently,” the official added.

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Newspaper/Online ET Realty (online)

Date December 15, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/high-rises-in-andhra-pradesh-flouts-fire-safety-norms/72658226

North Delhi civic body to send plan to DDA for development in urban

villages

The moment a village is declared urban under Section 507 of DMC Act, the corporation takes

over civic services, Dabas said. But agricultural or vacant gram sabha land is acquired by DDA.

To push development work on gram sabha land in 33 villages, North Delhi Municipal

Corporation plans to forward a proposal to Delhi Development Authority (DDA) after passing it in the

House meeting on Monday.

According to the proposal, moved by two BJP councillors from Rani Khera last year and already

approved by the standing committee, layout plans stating the width of road, gram sabha land, pond,

choupal and other places will be approved and uploaded on the corporation’s website.

“We moved the proposal as it was difficult for councillors and MPs to undertake any development

work in rural villages. Fortunately, on the lieutenant governor’s direction, 79 villages were declared

urbanised last month and this has opened the scope for development work,” said councillor Jayendra

Dabas.

The moment a village is declared urban under Section 507 of DMC Act, the corporation takes over

civic services, Dabas said. But agricultural or vacant gram sabha land is acquired by DDA. “While the

corporation can start sanitation or repair work in residential areas immediately, the development of

gram sabha land is decided by DDA in its layout plan. We seek to speed up this process so that early

work can start in urbanised villages,” he said.

As soon as the layout plans are implemented, residents can apply for registry of their properties with

Delhi government’s revenue department and even resell them, Dabas said, adding that they can also

take loan using registry documents.

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Newspaper/Online ET Realty (online)

Date December 14, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/north-delhi-civic-body-to-send-plan-to-dda-for-development-in-urban-villages/72577623

Dehradun: Paltan Bazaar renovation expected to be complete by

December 2020

The project will see all shops getting a uniform signboard among various other things.

The renovation of Paltan Bazaar under Smart City project is underway and is expected to be

completed by December 2020. The project is being carried out by Dehradun Smart City Limited.

Officials of DSCL, traders, and other stakeholders are holding discussions regarding the same. The

construction work will start soon after Paltan Bazaar traders give their consent.

The project will see all shops getting a uniform signboard among various other things.

“Everything has been finalised and now, we are just having discussions with the trade union in order

to address their concerns. The project will hopefully be completed by December 2020. It will be a

major project for us as the construction work will take place overnight. Also, there will be no place in

the Paltan Bazaar to store the construction material so we will have to take only a limited amount of

material which can be utilised on that particular night,” said Surya Kotnala, assistant general manager

(procurement and contract management) of DSCL.

The official added, “All the shops will have a similar design and colour is to be finalised after

consideration with the trade union. Apart from this, a pedestrian path will be constructed and there will

be golf carts to carry pregnant women and senior citizens. A multi-utility duct will be created in which

all the running cables will be underground.”

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Newspaper/Online ET Realty (online)

Date December 14, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/dehradun-paltan-bazaar-renovation-expected-to-be-complete-by-december-2020/72594643

Keppel Land, Rustomjee form JV to develop integrated township in

Thane

Keppel Land will be acquiring 49% stake in the joint venture company Kapstone Constructions

for around Rs 410 crore.

Singapore-based diversified conglomerate Keppel Corporation's property arm Keppel Land has

entered into a joint venture with realty developer Rustomjee Group to develop an integrated township

project spread over 127 acre in Thane near Mumbai.

Keppel Land will be acquiring 49% stake in the joint venture company Kapstone Constructions for

around Rs 410 crore. This is first such alliance between a Singaporean and an Indian developer for any

project in Mumbai Metropolitan Region.

Keppel Land, prior to this, has also entered into a joint venture with Bangalore-based Puravankara.

Keppel Puravankara Development has bought a 7.6 acre land parcel in Bangalore for Rs 405 crore to

develop its first commercial office-cum-retail project, while the joint venture with Rustomjee will be

developing an integrated township, first such project for Keppel in India.

Apart from this project, Keppel and Rustomjee will jointly explore more development opportunities in

MMR. Rustomjee will be Keppel’s exclusive alliance partner for the region.

Since its launch in 2006, the Urbania township has housed 2,700 residential units amid comprehensive

amenities.

Keppel Land will be acquiring a 49% stake in the joint venture company, Kapstone Constructions

Private Limited, at a consideration of about INR 4,091 million (approximately S$78.2 million).

"We are confident that this joint venture will be a win-win partnership. This is a beginning of two

large developers coming together to build a strong partnership in the Mumbai Metropolitian Region

market and we look forward to great growth together," said Boman Irani, Chairman of the Rustomjee

Group.

Upon completion of the acquisition, Keppel Land and Rustomjee will jointly develop an addition of

about 7,400 homes and retail units with a total gross floor area of around 5 million sq ft. The

Newspaper/Online ET Realty (online)

Date December 16, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/keppel-land-rustomjee-form-jv-to-develop-integrated-township-in-thane/72723686

development cost for the first phase under the joint venture, which will comprise around 460

residential units, is expected to be nearly Rs 401 crore.

Completion of the acquisition is subject to the satisfaction of certain conditions precedent and is

expected to take place around the first quarter of 2020, the company said in a release.

"Our collaboration with the Rustomjee Group for this maturing integrated township is in line with

Keppel Land’s strategy to strengthen our presence in high-growth areas such as the Mumbai

Metropolitan Region," saidhl Ho Kiam Kheong, President (India), Keppel Land.

The transaction is not expected to have any material impact on the earnings per share and net tangible

assets per share of Keppel Corporation Limited for the current financial year.

______________________________________________________________________________________________________

United Bank of India cuts MCLR by 5 bps

Allahabad Bank, another state-owned Kolkata-headquartered lender, has lowered MCLR by

similar extent while its new rates will come into effect from Saturday. One basis point is 0.01

percentage point.

State-owned United Bank of India (UBI) has announced reduction in its marginal cost based lending

rate (MCLR) by five basis points from December 16, following leaders in the banking industry.

Allahabad Bank, another state-owned Kolkata-headquartered lender, has lowered MCLR by similar

extent while its new rates will come into effect from Saturday. One basis point is 0.01 percentage

point.

State Bank of India was first to announce 10 bps cut in MCLR last week after Reserve Bank of India

Governor Shaktikanta Das exuded confidence that previous policy rate cuts would translate into banks

lowering lending rates even as the central bank kept repo rate unchanged in the last monetary policy.

UBI said its one-year MCLR is lowered to 8.40% while six-month MCLR would be 8.30%. Allahabad

Bank's six-month MCLR will be 8.15% and one-year MCLR 8.30%. SBI's one-year MCLR is at

7.90% from December 10.

Before this round of rate reduction, the one-year median MCLR dipped 49 bps since February while

RBI cut repo rate by 135 basis points cumulative in the same period.

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Newspaper/Online ET Realty (online)

Date December 14, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/united-bank-of-india-cuts-mclr-by-5-bps/72576854