4--nov oct--2019 · 2019-11-04 · from december 1, all developers registered with the maharashtra...

10-Oct-2019 04-Nov-2019

CREDAI Bengal Daily News Update | 04.11.19

Government considering giving more power to RERA authorities

Fed up, the regulators are likely to seek more authority under the law to empower them to

attach unsold inventories of builders to make them fall in line and find ways to complete

projects.

HIGHLIGHTS

Fed up, the regulators are likely to seek more authority under the law to empower them

to attach unsold inventories of builders to make them fall in line and find ways to

complete projects

Real estate regulators from across states have gathered in Lucknow and sources said

they would push for amendments in the Real Estate Regulation and Development Act

(Rera) to give them more teeth

It’s not just homebuyers who are troubled by builders’ non-compliance with orders passed

by Real Estate Regulatory Authorities (Reras), even regulators are concerned at the stubborn

attitude of builders.

Fed up, the regulators are likely to seek more authority under the law to empower them to attach

unsold inventories of builders to make them fall in line and find ways to complete projects.

Real estate regulators from across states have gathered in Lucknow and sources said they would

push for amendments in the Real Estate Regulation and Development Act (Rera) to give them

more teeth, particularly to execute orders passed by them.

They are also likely to flag emerging issues before the government including financing

requirement for the sector, which is saddled with stuck projects across the country. “Our

ultimate task is to see that stuck projects get completed and hence we have to look at liquidity

issues,” said a regulator.

Newspaper/Online ET Realty(online)

Date November 04, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/government-considering-giving-more-power-to-rera-authorities/71884054

On Sunday, housing secretary Durga Shankar Mishra hinted that the government would

consider amendments in the law. “He said government is considering to give more power to

regulators so that they can take bold steps,” an official statement by UP Rera said.

A couple of Rera chiefs TOI spoke to said though the law had made an impact across states,

there were some challenges to take it ahead. They said some legal issues needed to be resolved

for effective functioning of regulators.

“This is the first time that there is a concerted effort to identify issues, discuss them and make

recommendations to the government. The main focus is how to strengthen the system,” one of

them said.

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CSMC approves construction of over 2 lakh houses under PMAY-

U

A total of seven states/UTs participated in the CSMC namely Andhra Pradesh, Assam,

Bihar, Madhya Pradesh, Nagaland, Puducherry and Uttar Pradesh.

The Central Sanctioning and Monitoring Committee (CSMC) under Pradhan Mantri Awas

Yojana (Urban) on Friday approved 371 proposals from participating states and Union

Territories for construction of over 2 lakh houses with an overall investment of Rs 7,322 crore.

The cumulative number of houses sanctioned so far is more than 93 lakhs.

A total of seven states/UTs participated in the CSMC namely Andhra Pradesh, Assam, Bihar,

Madhya Pradesh, Nagaland, Puducherry and Uttar Pradesh.

The number of houses approved for the seven states/UT are Andhra Pradesh - 1,24,624 houses,

Assam - 16,002 houses, Bihar - 15,049 houses, Madhya Pradesh - 18,362 houses, Nagaland -

3,238 houses, Puducherry - 1,811 houses and Uttar Pradesh - 52,446 houses.

The states of Andhra Pradesh and Uttar Pradesh have achieved nearly 100 per cent of their

urban housing demand of 13.78 lakh and 15 lakh houses respectively.

The state of Uttar Pradesh, picked up late only after March 2017, has cumulative sanction for

14.50 lakh houses so far. It is a clear front runner in both overall sanction of houses as well as

houses sanctioned under Beneficiary-led Construction Scheme which is presently 12.56 lakh

houses. The state also enjoys leading position among northern states for Credit Linked Subsidy

Scheme (CLSS) which is an interest subvention component of PMAY(U).

Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs (MoHUA) said that

the investment in sanctioned houses is Rs 5.56 lakh crore which includes Rs 2.82 lakh crore as

Public Sector investment while Rs 2.74 lakh crore from the Private Sector. Out of Rs 1.46 lakh

crore central assistance approved, a total of Rs 57,896 crore has been released to the states/UTs

so far.

As on date, PMAY(U) Mission has achieved the milestone of sanctioning more than 93 lakh

houses under PMAY(U) against the validated demand of 1.12 crore houses. A total of 55 lakh

houses are grounded for construction of which construction of more than 28 lakh houses is

complete.



Link https://realty.economictimes.indiatimes.com/news/residential/csmc-approves-construction-of-over-2-lakh-houses-under-pmay-u/71860990

Builders registered with MahaRERA to furnish SRO details from

December 1

MahaRERA officials said amendments under section 34 of the MahaRERA Act were

brought into force to ensure greater professionalism among promoters and discourage

fraudulent practices.

From December 1, all developers registered with the Maharashtra Real Estate Regulatory

Authority (MahaRERA) will have to furnish details of the developers’ body they are associated

with as a part of the latest amendments made by MahaRERA on Friday.

MahaRERA officials said amendments under section 34 of the MahaRERA Act were brought

into force to ensure greater professionalism among promoters and discourage fraudulent

practices.

Vasant Prabhu, secretary, MahaRERA, told TOI that the move would benefit consumers as

many promoters after registering themselves with the regulatory body do not comply with the

rules or are not available on the given address, but now the SROs would have to undertake

responsibility for the details provided by the developers and ensure their compliance with the

rules and regulations. “We will be able to track all projects with the help of the SROs,” he said.

The developers, while registering with MahaRERA, will have to provide details of the self-

regulatory organisation as part of their registration process, which would be approved by the

authority. Officials said this would make the developers and SROs accountable for the projects

undertaken by them in the state.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/builders-registered-with-maharera-to-furnish-sro-details-from-december-1/71874174

Consumer complaints should go to RERA before NCLT: NCR

builders

About 80-85 per cent of these 450 cases admitted so far by the National Company Law

Tribunal (NCLT) pertain to builders of the national capital region who have defaulted big

time in handing over flats to homebuyers.

With even individual homebuyers taking builders to bankruptcy court, rattled real-estate

developers from Delhi-NCR are demanding that all consumer complaints first be heard by

regulator RERA before insolvency proceedings are initiated.

According to the realtors' apex body CREDAI, about 450 real estate companies/projects across

the country are facing insolvency proceedings under the Insolvency and Bankruptcy Code

(IBC) because of default in the delivery of projects to homebuyers as well as repayment of bank

loans.

About 80-85 per cent of these 450 cases admitted so far by the National Company Law Tribunal

(NCLT) pertain to builders of the national capital region who have defaulted big time in

handing over flats to homebuyers.

"Even a single home buyer is approaching the NCLT with grievances against real estate

developers. Their pleas are being admitted in many cases. This is becoming an epidemic,"

CREDAI-NCR spokesperson Rohit Raj Modi told in an interview.

Most of these cases are being filed by investors and speculators, jeopardising the interest of

actual homebuyers who want to take possession of their flats, he alleged.

"The government's intention was not this when it declared homebuyers as financial creditors to

protect their interests," Modi said.

The insolvency law is being implemented in a wrong way, he said.

CREDAI-NCR Treasurer Prashant Solomon said the real estate regulators established under the

realty law RERA should be defined as the first point of call for any homebuyers' grievances.

"When there is RERA, consumers grievances should first come to RERA, which can then refer

it to the NCLT after taking consent of two-thirds of homebuyers," he added.



Link https://realty.economictimes.indiatimes.com/news/industry/consumer-complaints-should-go-to-rera-before-nclt-ncr-builders/71884039

The association's demand comes amid reports that the government is planning to amend the IBC

and put in some threshold for homebuyers to approach the NCLT.

"Amendments should be brought in quickly. Even ordinance route should be considered,"

CREDAI's Modi said.

In September, the association had written to the Prime Minister demanding that the consent of

2/3rd of allottees of a real estate project should be required to trigger IBC proceedings against a

promoter.

Modi said most of the projects in Delhi-NCR are net worth positive but they are stuck because

of huge liquidity crunch and poor sales.

A significant delay in giving possession of apartments to homebuyers is one of the major

reasons for demand slowdown in the housing segment.

Lakhs of homebuyers are stuck in residential projects launched by developers such as Jaypee

group, Amrapali and Unitech.

Promoters of many NCR-based realty firms are in jail due to default in giving possession to

homebuyers.

Homebuyers body Forum for Peoples' Collective Efforts (FPCE) President Abhay Upadhyay

recently said that around 5 lakh customers are stuck across the country due to delayed projects.

According to a recent report from property consultant JLL India, nearly 2.2 lakh housing units

worth Rs 1.56 lakh crore, launched in 2011 and before across seven major cities, are yet to be

completed by real estate developers.

As per the JLL data, the real estate companies of Delhi-NCR (National Capital Region) are the

biggest defaulters as their contribution in delayed housing units accounts for 71 per cent in

volume and 56 per cent in value terms.

In April this year, property consultant Anarock came out with a report which said that around

5.6 lakh housing units (worth Rs 4.5 lakh crore) which were launched in 2013 and before across

seven major cities were running behind the delivery timelines.

________________________________________________________________

Realty sector affected due to Maradu fiasco: Credai Kerala

The real estate body sought the government to play the role of a supportive and

constructive agency.

The Maradu flat fiasco has adversely affected the real estate sector. For the first time, Credai

Kerala has come out in the open stating that their business has been hit and their credibility

eroded.

Addressing reporters in Kochi on Friday, Credai past national vice-chairman, Raghuchandran

Nair said, "The trust is lost, and people are reluctant to invest. The business has been badly hit

and it has hurt the economy badly. Many people have lost jobs. The state government has the

responsibility to straighten out the system."

The real estate body sought the government to play the role of a supportive and constructive

agency. In Maradu issue, due to wrong information fed by a few officials the government

couldn't apprise the Supreme Court about the real facts.

"People have started withdrawing from projects due to the uncertainties. Banks have become

reluctant to provide loans for projects, particularly those planned along riversides and coastal

areas. Many on-going projects are also affected," he said.

The Credai representatives said that the state government had identified 231 cases of violations

in Maradu. This even includes individual houses. If action is taken against violations identified

across that state, it would further damage the economy. Credai demanded a judicial probe into

the entire Maradu fiasco.

On a question regarding special leave petition before the Supreme Court involving 13 buildings

on the bank of Chilvannur Lake, Credai Kerala said that they were ready to fight the legal

battles. "We have studied in detail the Costal Regulation Zone (CRZ) regulation and

notifications. There are anomalies in CRZ mapping and it should be rectified by doing proper

Coastal Zone Management Plan (CZMP) to protect the interest of common man and investors,"

said chairman S Krishnakumar.

Environment consultant P Z Thomas, who listed out the anomalies in implementing CRZ

regulations pointed out the need to evolve a simple mechanism where applications for issuance

of building permits could be made transparent. "An order issued by the Supreme Court on

January 10, 2018 had directed to put in a system within four months. However, this was never

implemented," he pointed out.



Link https://realty.economictimes.indiatimes.com/news/industry/realty-sector-affected-due-to-maradu-fiasco-credai-kerala/71863179

Goa: Widows can now sell, gift properties without NOC

The order to that effect has been issued by the government whereby all earlier circulars,

orders and instructions related to the issue of sale of land, gift, mutation and power of

attorney by widows have been withdrawn.

A contentious circular, issued in 2018, which made it mandatory for Goan widows to obtain a

certificate from the deputy collector’s office before selling their properties has been withdrawn

with immediate effect, the state government said here on Friday.

The order to that effect has been issued by the government whereby all earlier circulars, orders

and instructions related to the issue of sale of land, gift, mutation and power of attorney by

widows have been withdrawn.

The concerned public and stakeholders, who were made to obtain NOC of a widow sworn

before the deputy collector for sale of each flat, plot or tenement, are now relieved of the same.

The issue was deliberated before minister for revenue Jennifer Monserrate and secretary

(revenue) Sanjay Kumar by representatives of several institutions and concerned affected

common people. The order will be a big relief to all widows based in Goa, abroad and to people

in general,the govenrment said in a note.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/goa-widows-can-now-sell-gift-properties-without-noc/71874418

Rajasthan Apartment Land Ownership Act to bring clarity on flat

maintenance costs

President Ram Nath Kovind had given assent to the Act a month back.

The new Rajasthan Apartment Land Ownership Act, which is yet to be implemented, will

provide transparency in collection of money by the builder from flat owners for maintenance

purposes.

President Ram Nath Kovind had given assent to the Act a month back.

The highlights of the act are transparency in collection of money in the name of maintenance

and ownership of the buyers on the land on which the apartment is constructed.

At present, there are complaints of builders charging thousands of rupees in the name of

maintenance for common facilities like garden, lift, electricity.

Director of town planning at JDA R K Vijaywargiya said that after the implementation of the

Act, an association of residents will be formed to handle maintenance work of the building.

“As per S.19 of the Rajasthan Apartment Ownership Act, the builder has to hand over the work

of maintenance to the residents’ welfare association. It will be the prerogative of the residents

association to either maintain the building themselves, outsource it to third party or to the

builder. However, the builder has to provide account to the association,” said Vijaywargiya. The

Act also mentions that any residents’ welfare association can curtail the essential services to any

owner if he/she fails to contribute to the common facilities in the building.

The Act is very well accepted among the apartment owners of the city.

Ashok Mittal, an owner of the apartment in Raja Park, said that this is welcome step. “I believe

it will provide transparency in the money we are being charged. We are being charged Rs

15,000 for two months from 10 owners. Where the money is spent is not told to us,” said

Ashok.

However, some owners said that the reality of the Act will be seen after its implementation.

“Our land rights will be implemented in the long run but what will be its effect will have to be

seen. These powerful builders will find any loophole in the law sooner or later,” said Mahesh

Joshi, a resident of an apartment in Bani Park.

Currently, apartment owners in a multi-storey building do not have land rights. The land



Link https://realty.economictimes.indiatimes.com/news/industry/rajasthan-apartment-land-ownership-act-to-bring-clarity-on-flat-maintenance-costs/71864781

ownership will be effective in case of any natural calamity or disaster if the building gets

destroyed.

________________________________________________________________

Henderson to lend 4.28 lakh sq ft land to Hong Kong government

for housing

The government said separately it is planning to pay HK$1 as rent to Henderson Land,

according to local media.

Hong Kong property developer Henderson Land Development said on Saturday it will lend

428,000 square feet of brownfield land in the city's suburbs to the government for seven years

to build 2,000 transitional housing units.

The move comes after the Hong Kong and Chinese governments asked developers to contribute

back to the community, in an attempt to tackle a housing shortage in Hong Kong, where

millions of anti-government protesters have taken to the streets for months.

The 428,000 square feet of land to be lent in Hong Kong's New Territories represents 1% of the

total farmland Henderson owns, which was estimated to be 45 million square feet at the end of

last year, the most among Hong Kong developers, according to a report published by Bank of

America Merrill Lynch. But some researchers said the actual quantum of land owned could be

larger.

The government said separately it is planning to pay HK$1 as rent to Henderson Land,

according to local media.

Another major property developer, New World Development Co Ltd , said in September it

would donate 3 million square feet of its farmland reserves for social housing, while the city's

richest man Li Ka-shing said a week later he would donate HK$1 billion ($128 million) to

support local small and medium sized businesses.

In one of the boldest housing policies in recent years, Hong Kong leader Carrie Lam vowed in

her policy address in mid-October to take back about 700 hectares of land in the New

Territories from developers into public use under what is known as a land resumption

ordinance.

The government has also said it aimed to provide 10,000 transitional housing units in the next

three years.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/henderson-to-lend-4-28-lakh-sq-ft-land-to-hong-kong-government-for-housing/71865721

4--nov oct--2019 · 2019-11-04 · from december 1, all developers registered with the maharashtra...

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