10-Oct-2019

06-Dec-2019

12-Feb-2020

CREDAI Bengal Daily News Update | 12.02.20

NoBroker acquires Society Connect in all cash deal

Society Connect, a technology mapped platform for society management, has over 500

societies that are using its platform for various worlds related to housing society in Delhi-

NCR.

NoBroker, an online real estate portal has acquired Society Connect in an all cash deal. With the

acquisition, the company plans to strengthen its hold in the visitor and community management

space.

Society Connect, a technology mapped platform for society management, has over 500 societies

that are using its platform for various worlds related to housing society in Delhi-NCR.

“Our focus has been to provide end to end solution for all aspects of community management and

simplify apartment living. Society Connect’s accounting and payment solutions are unparalleled

and will strengthen NoBrokerHood’s suite of services. NoBrokerHood will become a single

software for a host of services such as accounting, facility management, security, maintenance

requests, communication and visitor management requests that enhance society living

experience,” said Akhil Gupta, co-founder and Chief Technology Officer of NoBroker.com.

Society Connect is currently deployed with realty players such as DLF, Unitech, Omaxe

Group, Ashiana Group, Supertech Group, Nirvana Country, Tatvam Villas, Exotica Group, Ireo

Grand Arch, ATS, Bestech, Vatika Greens, Belmonte, and many more. It generates maintenance

bills upwards of Rs 350 crore per annum.

“The specialized solutions built by Society Connect would help achieve greater transparency and

faster redressal for the residents,” said Amit Agarwal, co-founder and CEO of Nobroker.com. In

2019, Nobroker raised $101 million in series C and D rounds. It also launched services in

Hyderabad and Delhi-NCR.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/allied-industries/nobroker-acquires-society-connect-in-all-cash-deal/74086766

Realty fund of Rs 12,500 crore may be fully deployed in two years

The fund has already given its final approval for 2 projects — one each from Mumbai and

Bengaluru — for disbursement. These projects comprising 1,800 houses stuck in various

stages of completion which will provide homes to around 9,000 people.

The government’s Rs 12,500 crore Alternate Investment Fund (AIF), which offers last-mile

funding to stuck housing projects, has disbursed funds to two housing projects and expects to

fully deploy its money in two years.

Arun Mehta, MD SBI Capital Markets and Chairman, SBICAP Ventures, told ET in an exclusive

interaction on Monday that the investments would kick-start the much-awaited investment cycle

in residential realty and trigger private investor interest in housing projects.

SBICAP Ventures, a wholly owned subsidiary of SBI Capital Markets and an alternative asset

manager, has been entrusted by the government to manage the fund to kick-start stalled projects

across the country.

Over 300 real estate developers across the country have approached the fund for financial support

for their projects. Of these, 200 builders have submitted preliminary information while the fund

managers have sought more information from 100 of the 200 developers. Nearly 20% applications

are under active consideration while around 60 projects have not met the necessary criteria for

getting financial support.

“At least 8 applications have received preliminary approvals, 2 applications have got the final

approval while 40 projects are under active consideration. In the next stage, these projects will

undergo real estate, tax, financial, forensic and legal due diligence,” Mehta said.

The fund has already given its final approval for 2 projects — one each from Mumbai and

Bengaluru — for disbursement. These projects comprising 1,800 houses stuck in various stages

of completion which will provide homes to around 9,000 people.

Mehta, however, declined to disclose the identity of the investees and the amount disbursed

stating that this may hinder that company’s ability to negotiate terms with its vendors and

contractors.

According to estimates, 4.58 lakh housing units are facing delayed delivery across 1,509 stalled

projects. The delay has led to rising consumer activism, several litigations in consumer forums

and even in the National Company Law Tribunal (NCLT).

The fund achieved its first closure worth Rs 10,530 crore on December 6 within a month of the

Newspaper/Online ET Realty (online)

Date February 12, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/realty-fund-of-rs-12500-crore-may-be-fully-deployed-in-two-years/74091603

government approval in November. Based on the first closing at a significantly large amount,

adequate capital is available for active deployment over the next 1-2 years. Additional capital will

be raised from domestic sources as well as sovereign and multilateral international institutions

which typically take longer time for closure.

“We will be committing the first over Rs 10,500 crore in the next 12-18 months and we may start

additional fund raising concurrently. However, our priority for now is to deploy the funds and

push for projects’ completion,” he said while adding that the fund is receiving applications for

financial support not only from developers of the projects, but also the lenders including banks

and Non-Banking Finance Companies (NBFCs).

In the first closure, it has attracted interest from investors such as the Government of India, LIC,

HDFC, State Bank of India and other major public-sector banks. The government has already

committed Rs 5,000 crore to the SWAMIH Investment Fund under its aggregate commitment of

Rs 10,000 crore to the special window.

The government is the sponsor of the SWAMIH Investment Fund I that has been set up under the

Special Window for Completion of Construction of Affordable and Mid-Income Housing

Projects. The tenure is around 8 years.

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SC seeks reply from Kerala govt on Maradu flat owners pleas for

setting up of tribunal

A bench of justices Arun Mishra and Indira Banerjee issued notice to the Kerala

government on the application filed by the flat owners, who sought exact valuation of their

property.

The Supreme Court on Monday sought response from the Kerala government on pleas

by Kochi's Maradu flat owners, whose apartments were recently demolished for being

constructed in violation of coastal regulation zone norms, seeking setting up of a tribunal for exact

valuation of the land.

A bench of justices Arun Mishra and Indira Banerjee issued notice to the Kerala government on

the application filed by the flat owners, who sought exact valuation of their property.

Senior advocate P S Patwalia, appearing for some flat owners, said a retired apex court judge

should be appointed as a tribunal judge for assessing the exact valuation of the property.

He said otherwise they will be at the receiving end for not being able to get the price, which they

have paid to the builders of the apartment.

Senior advocate Dushyant Dave, also appearing for another set of flat owners, sought a similar

relief and said that a tribunal should be appointed to assess their loss.

Senior advocate Gopal Sankaranarayanan, appearing for some home buyers, said on the apex

court directive they have been paid an interim compensation of Rs 25, lakh but the exact value

was much more and they need to be paid more for the loss.

He said the land on which apartments were constructed can be monetized so that the flat owners

can get more money to compensate their loss.

The bench issued notice in all the intervention applications filed by the flat owners and sought

response from the state government in four weeks.

It listed the matter on March 23.

On January 13, the apex court had directed the Kerala government to remove the debris, including

from backwaters, of four apartment complexes in Kochi's Maradu area that were demolished on

the apex court's order for being built in violation of the coastal regulation zone (CRZ) norms.

The top court had asked the state government to restore the area by removing the debris as early

Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-seeks-reply-from-kerala-govt-on-maradu-flat-owners-pleas-for-setting-up-of-tribunal/74074010

as possible.

Regarding other issues, including setting up of one court to deal with pleas filed by buyers to

initiate appropriate proceedings against the builder, the court had asked them to file proper

applications.

The top court had asked the state government to file report before it with regard to removal of

debris of the demolished buildings.

On May 8, 2019 the apex court had directed that these buildings be removed within a month as

they were constructed in a notified CRZ, which was part of the tidally-influenced water body in

Kerala.

It had passed the order after taking note of a report of a committee, which had stated that when

the buildings were built, the area was already notified as a CRZ and construction was prohibited.

It had on September 27 last year directed demolition of these flats within 138 days, a timeline

given by the Kerala government, and had asked the state to pay Rs 25 lakh interim compensation

to each flat owner within four weeks.

The top court had on September 30 last year refused to entertain a plea of flat owners seeking

stay on its order to demolish the apartment complexes.

The counsel appearing for Kerala had earlier told the apex court that in compliance of its earlier

order, the state had paid Rs 27.99 crore as interim compensation to the Maradu flat owners and it

will be paying Rs 33.51 crore more to them.

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UPHDB, Lucknow development body to offer 5-10% discount on

unsold flats

The apartments in which 5% discount will be given include Mandakini, Alaknanda,

Bhagirathi, Gangotri and Nandni under the Awadh Shilp Gram project on Sultanpur road

and Akash, Arawali, Govardhan, and Neelgiri enclave in Vrindavan Yojana on Kanpur

road.

UP Housing Development Board (UPHDB) and Lucknow Development Authority (LDA) on

Monday decided to give 5-10% discount on the flats constructed by the two agencies in seven

housing schemes on Kanpur and Sultanpur roads.

The apartments in which 5% discount will be given include Mandakini, Alaknanda, Bhagirathi,

Gangotri and Nandni under the Awadh Shilp Gram project on Sultanpur road and Akash, Arawali,

Govardhan, and Neelgiri enclave in Vrindavan Yojana on Kanpur road.

The 10% discount will be provided for Amrapali Yojana flats in Vrindavan Colony. The decision

was taken because flats in these projects were lying unsold for a long time. All these flats are

under one or two BHK category and cost between Rs 30-45 lakh.

Similarly, the board members also gave a go-ahead for making the detailed project report for

constructing a cultural auditorium with a seating capacity of over 5,000 people at the under-

construction Awadh Shilp Gram housing project on Sultanpur road.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/uphdb-lucknow-development-body-to-offer-5-10-discount-on-unsold-flats/74079883

NCLAT dismisses RNA plea against insolvency proceedings

The bank had filed the petition under Section 7 of the Insolvency and Bankruptcy Code

(IBC), 2016, which sought the resolution process claiming total dues worth Rs 80.73 crore.

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea challenging

initiation of insolvency proceedings against realty developer RNA Corporation. The National

Company Law Tribunal (NCLT) had in December passed an order to start insolvency proceedings

against the Mumbai-based developer after admitting a plea by Bank of India (BoI) over term loan

default.

The bank had filed the petition under Section 7 of the Insolvency and Bankruptcy Code (IBC),

2016, which sought the resolution process claiming total dues worth Rs 80.73 crore.

Anubhav Agarwal, managing director of RNA Corp, moved NCLAT challenging the NCLT order

on the ground of limitation, stating that BoI has already moved the second application under

Section 7 of the IBC for the same set of claims against another guarantor, Chamber Constructions,

and is, therefore, not maintainable. The court has found no merit in this appeal.

BoI had granted a loan of Rs 75 crore to RNA Corp in October 2013 and the builder had defaulted

on repayment of this loan in December 2014. Since then, the account has been classified as a

nonperforming asset, the petition had said.

The developer had then argued that the company was regular in making payments to the bank,

but due to the death of its chairman Anil Kumar Aggarwal and also because of the slump in the

real estate market, the business was affected.

The company also submitted, through a letter in late-2015, that it had proposed to repay the credit

facilities in instalments, and accordingly, payments of Rs 7.50 crore were made in instalments.

The Mumbai bench of NCLT admitted insolvency proceedings against RNA Corp and named

Debashis Nanda as interim resolution professional to oversee the process.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/nclat-dismisses-rna-plea-against-insolvency-proceedings/74079172

Japanese investors flock to India's realty market

Some of the Japanese funds and companies that are looking to invest or increase their

investments includes Mitsui Fudson, Mitsubushi Corporation, Sumitomo Corporation and

Genkai Capital.

Many Japanese investors and developers are looking to increase their investments in India’s real

estate sector, as they look to tap opportunities in the Asia’s largest economy.

While it is the return that is enticing the Japanese fund, long term money is what attracts the

Indian developers to opt for the capital. Some of the Japanese funds and companies that are

looking to invest or increase their investments includes Mitsui Fudson, Mitsubushi

Corporation, Sumitomo Corporation and Genkai Capital. While most of the capital is for big

ticket opportunities in the commercial real estate, residential investment is also being selectively

evaluated.

“Japan is the third-largest investor in India and an entity that looks to invest in long-term projects,

the commercial real estate space is one that is conducive to Japanese expertise,” said Arshdeep

Sethi, managing director, Executive Board, RMZ Corp. The firm recently partnered with Japanese

leading global real estate developer Mitsui Fudosan to develop commercial project worth around

a $1 billion in India.

Governmental support through the Comprehensive Economic Partnership Agreement (CEPA)

has helped cement stronger relations between the two nations.

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Newspaper/Online ET Realty (online)

Date February 12, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/japanese-investors-flock-to-indias-realty-market/74091589

Indore civic body eyes Rs 100 crore revenue from tax for diverted

land

Exploring avenues to achieve the numbers, the corporation has issued a public notice

instructing diverted land owners to get their property registered with IMC and pay due

property tax.

To meet the annual revenue target of Rs 1161cr set by state government, Indore Municipal

Corporation (IMC) is now targeting at least Rs 100cr from owners of diverted lands of 29 villages

that were included within municipal limits of Indore.

Exploring avenues to achieve the numbers, the corporation has issued a public notice instructing

diverted land owners to get their property registered with IMC and pay due property tax.

Officials said that there are around 1000 such diverted lands of which accounts have yet not been

opened.

“We conducted a survey of 29 villages and found that each of these villages have at least 30-40

diverted lands of which information is not available in IMC’s record,” IMC’s additional

commissioner SK Chaitanya told TOI.

He said that apart from public notice, individual notices have also been sent to each of the

identified plot owners instructing them to pay property tax of their respective land from 2014-15

– the year, when their property was included within municipal limits of Indore.

“All of them have been instructed to clear dues of their respective diverted land within the next

15 days. If they fail to do it, then IMC would start sealing their property,” he added.

Most of these properties fall under southern zones of city.

Corporation officials expect a recovery of at least Rs100 crore from these property. The

corporation has so far collected around Rs280 crore as property tax and this action is seen as part

of an ongoing recovery drive of corporation to achieve a target of Rs1161 crore set by state

government.

The civic body has also launched a drive to identify power grids set up by Madhya Pradesh Vidyut

Vitaran Company Ltd (MPPKVVCL) in 29 villages. Officials found that there are no records of

some of grids set up on public space and discom was not paying tax against land on which grids

have been installed.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/indore-civic-body-eyes-rs-100-crore-revenue-from-tax-for-diverted-land/74073981

In Greater Noida, residential plot rates set to go up from April

Earlier, officials had divided the city into four zones and proposed to increase the land rates

in zones A, B and C. Land rates of sectors under zone D would not be increased since the

Authority is yet to develop the areas.

The rate of residential plots in Greater Noida is set to go up in the next fiscal. The Greater Noida

Authority has decided to hike the rate of land in the developed sectors by at least 20% from April.

An increase of 40% is in the offing for completely developed sectors.

At a board meeting held on Monday, a decision to revise the land rates with effect from April 1,

2020, was taken.

Earlier, officials had divided the city into four zones and proposed to increase the land rates in

zones A, B and C. Land rates of sectors under zone D would not be increased since the Authority

is yet to develop the areas.

The revised rates would be applicable only on schemes that are introduced in the next fiscal.

The steepest hike would be in Alpha, Beta, Gamma, Omicron, Xu, Delta and Mu sectors.

Currently, the authority commands Rs 23,100/sqmt as premium for residential plots in these

sectors. The plots would now be priced at over Rs 32,000/sqmt, officials said.

Deputy general manager (finance), Greater Noida Industrial Development Authority (GNIDA),

Monika Chaturvedi, said: “Sectors that have been fully developed and are connected via wide

roads and the Aqua Line would see maximum appreciation. All this while, land rate in the entire

town was the same.”

The official added that the details of the price would be uploaded on GNIDA’s website soon.

The board also decided to rationalise the rates of commercial properties.

Chaturvedi said that commercial rates of distant sectors have been brought down by 10% to 15%.

The board also took some other decisions during Monday’s meeting.

It has decided to install water meters in houses in the next two years, formalise the process of

incentivising housing societies that manage waste properly, impose a fine of Rs 1 lakh each on

agencies that put up hoardings and banners illegally and extend one-time settlement schemes for

allottees, in case other approvals are in place.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/in-greater-noida-residential-plot-rates-set-to-go-up-from-april/74073898

Rajkot first to get green building certificate for PMAY scheme

Rajkot Municipal Corporation (RMC) claimed that the civic body received this honour for

providing better services for houses constructed for people from lower income.

Rajkot has become the first city in the country to obtain the ‘Green Building Certificate’ for it’s

affordable housing scheme.

Rajkot Municipal Corporation (RMC) claimed that the civic body received this honour for

providing better services for houses constructed for people from lower income.

The certification was issued for the houses constructed near Aryaland Residency near Mavdi area

under PMAY (Pradhan Mantri Awas Yogna) scheme.

The civic body has constructed 1,176 houses for economically weaker sections, RMC said in a

statement.

These houses have openable windows instead of sliding ones, ventilators on all the openings,

provision of cavity wall on southern side, solar rooftop system for common electricity

requirement, rain water harvesting, and centrally located green space.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/rajkot-first-to-get-green-building-certificate-for-pmay-scheme/74073948

Mumbai infra development to unlock potential realty supply of

12.63 million sq metre: Report

It is estimated that 246 km of metro lines and 68 km of road projects are under various

stages of construction in the MMR.

Global real estate consultant Knight Frank India estimates that Mumbai's current transit

infrastructure development is expected to unlock the development potential of 12.63 million

square metres or 136 million square feet.

This was reflected in its latest report 'India Urban Infrastructure Report 2020 -- Special Focus on

Mumbai Transport Infrastructure with Key Impact Markets' which assesses the impact of massive

Rs 1.8 lakh crore worth transport infrastructure (metro and road) projects currently underway in

the Mumbai Metropolitan Region (MMR).

It is estimated that 246 km of metro lines and 68 km of road projects are under various stages of

construction in the MMR.

While some of these projects will be operational in the next three years and will have an

immediate impact on the neighbouring real estate, other projects are expected to complete over

the next four to eight years.

Some of the immediate real estate development potential are: office markets of Goregaon West,

Malad West, Goregaon East and Bandra Kurla Complex, Wadala Truck Terminus, Jogeshwari-

Vikhroli Link Road, the belt between Sonarpada metro station and Pisarve metro station, besides

Chirle and Kasarvadavali-Gaimukh belt in Thane.

"Infrastructure development and connectivity to employment hubs of the city play a crucial role

in determining the fortunes of a real estate market," said Shishir Baijal, Chairman and Managing

Director of Knight Frank India.

"While most infrastructure projects in Mumbai are playing catch-up with real estate development,

the scale of upcoming transit-oriented projects across the MMR will open up possibilities for

heightened real estate participation," he said.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-infra-development-to-unlock-potential-realty-supply-of-12-63-million-sq-metre-report/74079555

Synq.work launches 55,000 sq ft co-working space in Gurugram

The company also plans to launch 16,000 sq ft center adjacent to M.G. Road metro station

by April 2020. It has invested about Rs 3 crore (USD 500,000) in both the centres.

Synq.work has launched 55,000 sq ft co-working space in SAS Tower, Gurugram. The centre

has a seating capacity of about 820 seats.

The rent in the centre will range from Rs 7,000-11,000 per seat per month. Currently, the company

claims that it has already achieved 80% occupancy in the centre.

The company also plans to launch 16,000 sq ft center adjacent to M.G. Road metro station by

April 2020. The centre will have a capacity of 300+ seats.

The rent in the centre will range from Rs 7,000-14,000 per seat per month.

Synq.work has invested about Rs 3 crore (USD 500,000) in both the centres. By 2021, it plans to

increase its presence in Dubai, Qatar, and Prague.

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Newspaper/Online ET Realty (online)

Date February 11, 2020

Link https://realty.economictimes.indiatimes.com/news/commercial/synq-work-launches-55000-sq-ft-co-working-space-in-gurugram/74079880