10-Oct-2019

06-Dec-2019

21-Feb-2020

CREDAI Bengal Daily News Update | 21.02.20

SBI Cap Ventures takes lenient approach in receivables from

bailed out realty projects

"When we enter any project for last-mile funding, we come in as a senior lender while the

existing creditor becomes junior, which is a standard in such arrangements.

Taking a more lenient approach, SBI Cap Ventures, which is managing the proposed Rs 25,000-

crore stressed real estate asset fund, may allow 5-15 per cent of receivables and sales from a

targeted project to existing lenders. Originally when the fund was proposed, SBI Cap Ventures

fixed the lending rate at 15 per cent and with a condition that it will have first claim on future

receivables of the project.

"When we enter any project for last-mile funding, we come in as a senior lender while the existing

creditor becomes junior, which is a standard in such arrangements.

"So we have the first right on the receivables. However, we are now thinking that a minor portion

of the cash flows generated, could be directed to existing lenders," SWAMIH Investment Fund I

Chief Investment Officer Irfan Kazi said at a CII Real Estate summit.

Out of the cash flows that would be generated from the receivables and sales, once the project

resumes, around 5-15 per cent of this amount can be given back to existing lenders, may be

through waterfall distribution method, as the case may be, he said.

"While the existing lenders would get nearly 10 per cent of the inflows, 90 per cent will still come

back to the stressed fund, which we will be diverted back in construction," Kazi said.

The fund has so far lent to two stressed projects with one in Mumbai and the other in Bengaluru,

which will benefit nearly 1800 home buyers.

Speaking about the response the fund has received so far, Kazi said, "there has been a deluge of

applications. We have got more than 300 proposals. As many as 18 real estate projects, valued at

around Rs 22,000 crore, have gone through the investment committee process."

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

(SWAMIH) fund was created by the government with contributions from financial institutions

such as LIC and SBI to complete over 1,600 stalled projects with 4.5 lakh homes.

Recently, mortgage lender LIC Housing Finance said it has identified 14 projects to be referred

to the fund for last-mile funding, where it is the sole lender with a total exposure of Rs 1,400

crore.

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Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/sbi-cap-ventures-takes-lenient-approach-in-receivables-from-bailed-out-realty-projects/74229909?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-21

Maharashtra to start e-portal in March to integrate all property

transactions

The process will be first launched in Mumbai and subsequently in the remaining parts of

the state.

The state settlement commissionerate is set to roll out in March an integrated e-portal that will

have information on all checks related to property transactions.

The process will be first launched in Mumbai and subsequently in the remaining parts of the state.

“The e-portal will serve as a single platform for the citizens to check land titles, records of rights,

mutation records, payment of property, electricity and water tax dues and history of past

transactions,” settlement commissioner S Chockalingam said.

State settlement commissionerate officials said the portal would ensure all the facilities on a single

platform and lead to fewer visits to several offices, agencies and websites. “The one-stop portal

will be an effort to ensure a coordination between various departments and make the information

available on a single platform,” an official said.

Once the portal is launched, the citizens can visit it for all encumbrances related to property —

from checking title search, records of rights, property and water tax dues to conduct charges

search at the Registrar of Companies. Information available with the Centre’s Registrar of

Companies and Central Registry of Securitisation Asset Reconstruction and Security Interest of

India have been made available on the portal for checking the mortgage status of any property,

the official said.

With the conclusive land titling system is yet to be implemented, property buyers are required to

conduct elaborate title, legal and financial searches to verify the land title of a property before its

purchase. “The one-stop portal will also help the administration keep the agents away from the

process. A citizen can check all details related to a property,” the official said.

“As a part of ease-of-doing business, the easy registration of property is one of the important

criteria. Keeping this in mind, it has been ensured that there should be an easy process for title

search, property tax dues verification, searches at registrar of companies, preparation of final sale

deed, stamp duty payment and execution of the final sale deed,” he said.

The officials said the e-portal was one of the aspects under the ease-of-doing business, the other

aspects included the procedural and infrastructure reforms in the revenue department.

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Newspaper/Online ET Realty (online)

Date February 21, 2020

Link https://realty.economictimes.indiatimes.com/news/technology/maharashtra-to-start-e-portal-in-march-to-integrate-all-property-transactions/74234982?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-21

Delhi: Building bylaws amended to allow accesibility of all floors by

lifts

Till now, lifts are available only till the highest floor. From there, people have to climb up

to the roof/terrace using staircases.

Senior citizens and physically challenged people in Delhi will now have easier access to the

buildings’ roofs and terraces. The bylaws governing installation of lifts in

the residential buildings of the city have been amended, and as per the new rules, “all the floors,

including basement and rooftop/terrace, shall be accessible by the lifts.”

“Several points of unified building bylaws of Delhi-2016 rules, which govern construction of

buildings, have been amended by Delhi Development Authority (DDA). The new rules shall be

applicable from February 12, 2020 onwards,” said a senior south corporation official.

Till now, lifts are available only till the highest floor. From there, people have to climb up to the

roof/terrace using staircases.

Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/delhi-building-bylaws-amended-to-allow-accesibility-of-all-floors-by-lifts/74218569?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-21

“It was causing inconvenience to senior citizens and disabled people. Their access to roofs was

hindered and their wheelchairs had to be carried from the top floor,” the official added.

Lifts provided in the buildings will, however, not be considered for use in case of an emergency,

clarify the amended regulations. “It is important to keep staircase access for tragedies like fire,”

added the official.

Some other changes regarding height exemptions and building permit requirement regarding lifts

have also been incorporated in the amended bylaws.

“Earlier, the height of a machine room/lift room, which houses all the equipment on a roof, was

included in the overall permissible height of the building. This has now been exempted,” the

official said.

“People would be reluctant to install lifts in residential buildings in several cases as the height for

the floors had to be reduced. But now, the machine room shall be exempted from the height limit,”

explained the official.

However, the total height cannot breach the Airport Authority of India’s permissible limits.

To facilitate easy installation of lifts, authorities have also expanded the list of procedures for

which building permit will not be required.

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PWD to build Elcot IT parks in Coimbatore and Trichy

Deputy chief minister O Panneerselvam, who is also the state’s finance minister, announced

in the budget last Friday that owing to the increasing demand for IT space, Elcot would

develop IT parks in Coimbatore and Trichy.

In a first of its kind move, the Tamil Nadu government is set to award the construction contracts

of Elcot’s two proposed IT parks to the public works department (PWD), as against the private

competitive bidding route. The parks are to come up at Coimbatore and Trichy.

Deputy chief minister O Panneerselvam, who is also the state’s finance minister, announced in

the budget last Friday that owing to the increasing demand for IT space, Elcot would develop IT

parks in Coimbatore and Trichy. While he allocated Rs 100 crore for the 2.5 lakh-sqft IT park in

Coimbatore, Rs 40 crore was allotted for the construction of a 1 lakh-sqft IT park in Trichy.

The decision to construct the facilities through PWD and not by private construction companies,

usually selected through a competitive bidding route, was already taken at a top level official

meeting held in the Secretariat in the first week of February, sources privy to the development

told TOI. But a government order on this is yet to be issued, they added.

This is the first major decision taken by the IT department after the earlier IT secretary Santhosh

Babu was transferred and Hans Raj Verma replaced him. “The meeting was attended by IT

secretary, PWD secretary and MD, Elcot, among others and a decision was arrived at to let PWD

handle the construction. It was chief minister Edappadi K Palaniswami’s idea and Elcot did not

send any such proposal,” a source said.

According to industry sources, for IT parks promoted in the government sector – either by Elcot

or through Tidel Park Ltd, a company jointly promoted by Tidco and Elcot the services of CRN

Architects and Engineers will first be utilized to design and list out construction specifications,

since IT parks need to be intelligent buildings in line with the requirement of global IT majors.

Based on it, competitive bids will be invited from construction companies, who have to first

qualify by meeting the technical specifications and then offer the lowest bid to bag contracts.

CRN will vouch for the construction at every stage of completion.

“Perhaps, the PWD too is now well equipped to handle such constructions, having constructed

scores of collectorates, hospitals and other government buildings. While people will start using a

collectorate or a hospital as the government services will be compulsorily administered from

those buildings, Elcot has to market the IT park space to tenants, a majority of whom are top level

IT companies. One cannot equate the two segments,” said a property consultant, on the condition

of anonymity.

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Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/commercial/pwd-to-build-elcot-it-parks-in-coimbatore-and-trichy/74218687

SC directs Rajasthan government, collectors, SPs to stop illegal

sand mining

"We find that it is not disputed by anybody that illegal sand mining is rampant in the state

of Rajasthan and this cannot be allowed to continue," the top court said, coming down hard

on the authorities.

The Supreme Court Wednesday took strong note of rampant illegal sand mining in Rajasthan and

directed the state government, collectors and SPs to take immediate steps to stop it and file an

action taken report (ATR) within four weeks.

"We find that it is not disputed by anybody that illegal sand mining is rampant in the state

of Rajasthan and this cannot be allowed to continue," the top court said, coming down hard on

the authorities.

"Therefore, we direct the state of Rajasthan, District Collectors and Superintendent of Police (of

each district) to take immediate steps to stop illegal sand mining as there was no doubt

that...illegal sand mining is likely to damage the environment irreparably," it said.

A bench comprising Chief Justice S A Bobde and Justices B R Gavai and Surya Kant also directed

the apex court-appointed Central Empowered Committee (CEC) to look into the issue of illegal

sand mining in Rajasthan and submit a detailed report including suggesting measures to deal with

the issue within six weeks.

The apex court, which had stopped the sand mining in the state by its order in 2017, said that the

CEC was empowered to go into the issue of illegal sand mining and the problems faced by the

traders, transporters and other stakeholder.

"It will be necessary for the CEC to also go into the question of illegal sand mining and suggest

measures for stopping the illegal sand mining," the bench said.

It said that CEC shall have the power to summon any person including government officials for

the purposes of its inquiry and will be authorised to receive the copy of court records for this

purpose.

The bench, which was hearing as many as 18 petitions including the one filed by NGO 'Dastak',

asked the CEC to interact with the NGO officials and one Naveen Sharma who has filed a

contempt plea before it.

During the hearing several lawyers and Sharma raised the issue of rampant illegal sand mining in

the state and sought a direction that the CEC be asked to probe it and suggest remedial measures.

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Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-directs-rajasthan-government-collectors-sps-to-stop-illegal-sand-mining/74224634?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-21

Mangaluru: Apartments penalised for not complying with waste

management rules

A total of Rs 1.45 lakh has been collected as penalty from the apartments for not adhering

to the Solid Waste Management Rules.

Mangaluru City Corporation (MCC) has imposed penalty on 10 apartments in the city on

Thursday for not complying with the rules related to waste management.

MCC environment engineer Madhu S Manohar said the city corporation has imposed penalty

on Coral Apartment, Yemmekere, H H Diamond City, near M R Bhat Lane, Zulfa’s Master Piece,

Marnamikatte, Pearl Apartment, Pandeshwara, Mourishka Park, Near PVS Circle, Dynasty

Apartment, Valencia, Hi-Streak Apartment, near Kaikamba Market, Plama Icon, near Kaikamba

Market, Shalom Apartment, Maria Nagara and Royal Park, Valencia.

A total of Rs 1.45 lakh has been collected as penalty from the apartments for not adhering to the

Solid Waste Management Rules. Team of officials from the health section of MCC will conduct

spot visits all apartments and other bulk waste generating premises, Manohar said.

Recently, MCC commissioner Shanady Ajith Kumar Hegde had warned all bulk waste generators

to have own waste management units or else cough up hefty penalty. Hegde had said that penalty

to the tune of Rs 25,000 will be levied from bulk waste generators including apartments, small

industries, hostels, educational institutions, marriage halls and restaurants from February 10 if

they do not set up waste management units in their premises.

The National Green Tribunal (NGT) has expressed its concern over urban local bodies failing to

manage solid waste effectively. The NGT has issued guidelines and directed the government to

submit compliance report once in three months. Hence, the state government is very serious about

the implementation of Solid Waste Management Rules, 2016.

Accordingly, the MCC has already conducted workshops twice on July 3, 2019 and September

27, 2019 for all bulk waste generators including apartments, hostels, educational institutions,

hotels, restaurants, marriage halls, catering services, merchants, chicken stalls small industries,

builders and others. Initially, they were given October 31, 2019 as deadline to comply with the

waste management rules. However, most of them have not installed waste management units in

their premises.

“In the first phase, penalty of Rs 25,000 will be levied from all stakeholders, who have not

complied with the rules and the fine amount will be increased to Rs 50,000 in the second phase

and later criminal case will be booked against them,” the commissioner said.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/mangaluru-apartments-penalised-for-not-complying-with-waste-management-rules/74229771?utm_source=Mailer&utm_medium=&utm_campaign=&dt=2020-02-21

Jaipur development body plans to take legal route to get back its

plots

At present, JDA’s panel has 300 legal experts. Directions has been given to follow up the

cases to make JDA land free from legal tangles.

As more than 16,000 cases on its land are pending in the court, the Jaipur Development

Authority (JDA) has expedited its legal panel to resolve the cases.

At present, JDA’s panel has 300 legal experts. Directions has been given to follow up the cases

to make JDA land free from legal tangles. A senior official at JDA said, “There are cases where

stay has been put on JDA’s land. As the cases needs regular follow up, directions has been given

to expedite the process.”

Sources said land worth Rs 1,000 crore cannot be sold by JDA due to court cases. “The JDA is

desperate to earn revenue as it has to pay approximately Rs 30 crore installments against the loan

taken from National Capital Regional Planning Board for Dravyawati River and Railway over-

bridge,” said a source

The JDA has taken loans totalling Rs 2,250 crore from NCRPB for the city's major projects. The

JDA sought funds from the Centre for ROBs and the elevated road.

The JDA will also prepare the list of properties which has been put under the hammer several

times but could not find buyers.

As the real estate sector is going through a slump and the JDA is battling to meet its targets, zone

commissioners of the civic body have been asked to earn revenue if they wanted better grades in

the annual confidential report (ACR).

A JDA official said, “Zone commissioners will identify the reasons why these properties did not

sell. Bigger plots, which are out of reach of buyers, will be reduced in size. To earn revenue, the

zones will also focus on collection of lease money.”

The civic body will also run a special auction campaign to sell its property. The JDA will also

introduce lotteries to sell its unsold plots in existing housing schemes.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/jaipur-development-body-plans-to-take-legal-route-to-get-back-its-plots/74218649

UP Housing board to demolish over 250 flats in Agra

The report said the walls have not been plastered properly, and the concrete on the roof has

come off at several places, exposing the iron mesh. There are cracks on the columns.

A total of 272 flats of the 632 being constructed by the UP Housing and Development Board for

urban poor in Kalindi Vihar in Agra will be demolished after an investigation by a team from IIT

Roorkee pointed out that these are not suitable to live in because of poor quality of construction.

The team found that sub-standard materials were used and standard norms were violated while

constructing these 272 flats.

The report said the walls have not been plastered properly, and the concrete on the roof has come

off at several places, exposing the iron mesh. There are cracks on the columns. Besides, the sewer

line was not laid properly, the report said. Following the report, these flats have not been allotted.

Role of nine engineers associated with the project is being investigated.

Under the Basic Services for Urban Poor (BSUP), the UP Housing and Development Board in

2008 started construction of 632 flats for economically weaker section (EWS) category. The

construction of the one-bedroom flats was completed in January 2020 with a cost of Rs 22 crore.

A year back, following complaints of poor quality of construction, the state government ordered

a probe, following which experts from IIT Roorkee were roped in to conduct an investigation.

A senior officer of section-29 of UP Housing Board said, "A total of 272 EWS flats at Kalindi

Vihar are not suitable to live in. Soon after the orders of the state government, all these flats will

be demolished. A proposal has been sent to the state government in this regard”.

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Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/up-housing-board-to-demolish-over-250-flats-in-agra/74224731

Act against Borivli building: Bombay HC to BMC

Jatin Shah, an original tenant of the landlord/developer, Vas Infrastructure, had

approached HC in 2018, alleging illegal construction by the builder in violation of the

sanctioned plan.

Having faced flak before a bench headed by Justice S J Kathawalla recently, BMC got some relief

on Tuesday. The bench, after perusing an inspection report by civic engineers, was prima facie

satisfied that a builder carried out an illegal construction without seeking permission from BMC

in a 11-storeyed residential building in Borivli (W), and directed it to take steps in accordance

with law.

BMC counsel Veera Shinde on Tuesday submitted the report, which said a flat on the 11th floor

was constructed without approval and entire building was occupied without an occupancy

certificate (OC). It said servants' toilets on floors one to six were constructed without approval,

and no refuge area was provided at the mid-landing of the 4th and 5th floors but on the 10th and

11th floors, contravening the approved plan and fire NOC.

Jatin Shah, an original tenant of the landlord/developer, Vas Infrastructure, had approached HC

in 2018, alleging illegal construction by the builder in violation of the sanctioned plan. The

landlord,wanting to redevelop the property, had sought possession of premises occupied by

tenants, including Shah, and promised ownership flats to them on reconstruction. Shah and other

tenants handed over their premises to the landlord in 2010, said his lawyer, Himanshu Kode.

Roofless for long, Shah moved the city civil court and then HC. The developer filed an affidavit

before city civil court to state that since the OC was not received he was unable to give possession

of the flat to Shah. The tenant then went to HC.

Prateek Sakeseria and Viraj Maniar, advocates for the builder, on Tuesday said they had applied

for regularization with BMC and were ready to pay premiums.

On February 6, HC directed the BMC executive engineer to visit Pushp Vinod building No 3,

report if the development was illegal, and list illegalities due to which BMC was unable to issue

the occupation certificate.

The bench of Justices Kathawalla and Milind Jadhav said the flats were given "to avoid making

payments towards compensation in lieu of temporary alternate accommodation".

Though the builder proposed 53 parking lots in the compound, he "failed to provide a single

parking space'', compelling occupants to park on the road.

BMC has to inform HC on February 27 on action taken/proposed against the illegal construction.

________________________________________________________________________________________________

Newspaper/Online ET Realty (online)

Date February 20, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/act-against-borivli-building-bombay-hc-to-bmc/74224550