07-sept-2019 - credai bengalcredaibengal.in/wp-content/uploads/2019/09/07sept... · citing the...

07-Sept-2019

CREDAI Bengal Daily News Update | 07.09.19

MGP wants projects on less than 500 sq metre area to be included

under RERA

They have asked the word „or‟ to be removed and be replaced by „and‟, so that it would strictly

be restricted to really small projects.

Projects that may be built on less than 500 sq m area but have over eight apartments cannot be

excluded from the Real Estate Regulatory Authority (Rera) purview, pointed out the consumer rights

organization Mumbai Grahak Panchayat (MGP) to the Union ministry of housing and urban affairs.

While the Section 3 (2) of Rera excludes registration of small projects that can be developed in an

area of less than 500 sq m or less than eight flats, the consumer organization has written to the Centre

urging it to make changes in the Act.

They have asked the word „or‟ to be removed and be replaced by „and‟, so that it would strictly be

restricted to really small projects.

They pointed that the interpretation of the law by many developers has resulted in them taking

advantage of „non-registration‟, as they have plot area below 500 sq m but have constructed over 20

flats, which, defeats the purpose of the Act.

“While Rera insists on registration, the very purpose of the Act is defeated if the law is interpreted in

such a way that inspite of the area being small, the developers have chosen to go higher. And if such

projects are stuck, the consumers are the ones who suffer,” Shirish Deshpande, the chairman of

MGP, said.

Recently, at a housing meet, officials from the housing ministry had announced that the government

was working towards amending several provisions of Rera, which would benefit both developers and

homebuyers. MGP was hoping that this proposal will be included as part of the amendments

Citing the Maharashtra Real Estate Appellate Tribunal‟s judgment regarding a Pune-based

consumer‟s complaint where a project with 22 flats and nine shops was permitted, the consumer

rights organization said such cases need to be brought to the fore.

The case went from MahaRERA authorities to the Maharashtra Real Estate Appellate Tribunal and

as per members of MGP, it may soon go to the high court, if the consumers decide to continue

fighting their case

Newspaper/Online ET Realty (online)

Date September 07, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/mgp-wants-projects-on-less-than-500-sq-metre-area-to-be-included-under-rera/71018959

“Before the case went to the appellate tribunal, Rera adjudicated members of the project liable for

registration, by interpreting that both the conditions — area below 500 sq m and below eight

apartments — be met simultaneously. The members had imposed a Rs 30 lakh fine for non-

registration and directed the developer to register within two days. If the developer failed to do the

same, there would be further penalty. However, the case went to the tribunal which stated that either

of the condition be met, which again questioned how the Act was interpreted,” another member of

the MGP said.

The members of MGP firmly believe that the sanctity of the Act would not remain unless it was

amended and that the developers would take advantage of it.

The consumer rights organizations have stated that the Real Estate (Regulation and Development)

Act 2016, which came into force from May 2017, aimed at bringing transparency to the sector, which

was earlier unregulated and that amendments for the benefit were necessary.

The Centre will consult all stakeholders on the implementation of Rera in all states for the same, and

so consumer rights organizations are putting forth their issues regarding the changes required to

make it more effective.

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NGT seeks details of buildings above 20,000 sq metre in Jharkhand

having environment clearance

"In the next hearing on September 23, we will know from the tribunal about the time frame

given to the committee to verify and submit the report," said Singh.

The National Green Tribunal (NGT) on September 2 issued a notice to the state government to reply

within three weeks on the number of buildings above 20,000 square metre area having clearances

under the Environment Impact Assessment (EIA) notification of 2006.

The NGT move came after a petition was filed by noted wildlife activist R K Singh, who accused the

government of flouting the green norms while building the new assembly building.

The NGT also constituted a committee comprising representatives from the regional office of the

ministry of environment and forest conservation and climate change in Bhubaneswar and State

Environment Impact Assessment Authority (SEIAA), Jharkhand, to verify the claims of the

petitioner and submit a report within a given time frame.

"In the next hearing on September 23, we will know from the tribunal about the time frame given to

the committee to verify and submit the report," said Singh.

Notably, in his petition, the Singh has stated that the government has undertaken major constructions

of buildings particularly in Bokaro, Ranchi, Deogarh and Jamshedpur.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/ngt-seeks-details-of-buildings-above-20000-sq-metre-in-jharkhand-having-environment-clearance/71009725

Around 700 houses ready for people displaced by Pune Metro

The Slum Rehabilitation Authority (SRA) said it was now up to the local administration to

carry out the rehabilitation.

Around 700 tenements have been made ready in Lohegaon for the rehabilitation of the slum dwellers

displaced by the Metro project in the city.

The Slum Rehabilitation Authority (SRA) said it was now up to the local administration to carry out

the rehabilitation.

SRA officials said an assessment revealed that nearly 1,000 people had to be rehabilitated from the

area and the Pune collector has been told to work out a plan with the Pune Municipal

Corporation (PMC), Pune Metropolitan Region Development Authority (PMRDA) and MahaMetro.

“A meeting on this was held on Wednesday,” an SRA official said, adding that they would be get

possession of the tenements by month-end. “The SRA is waiting for the local authorities‟ response to

the proposal. We are willing to hand over these tenements for the rehabilitation programme,” he said.

The slums — Kamgar Putla Vasahat, Rajiv Gandhi Vasahat and Juna Topkhana — have to make

way for the PMRDA‟s elevated Metro line, the stations of MahaMetro and a proposed DP road of the

PMC. Though the earlier number for people to be rehabilitated was set at about 400, the number rose

to around 1,000 after the assessment.

As per the proposal, the affected people would get two options for the rehabilitation — a housing

unit or cash compensation. The compensation amount will be decided after the number of the

beneficiaries was finalized, SRA officials said.

PMRDA officials said they hoped that the work on the pillars for the elevated Metro line would start

once the people living in the three slums were rehabilitated. The PMRDA has already started work

on the pillars at Hinjewadi. The rest of the pillars would be installed once the final agreement

between the PMRDA and the concessionaire is signed.

The Maharashtra Metro Rail Corporation Limited (MahaMetro) is developing the remaining two

Metro corridors — Pimpri-Swargate and Vanaz-Ramwadi. These corridors will further intersect with

the PMRDA line at the Civil Court station, which is being planned as a multi-modal transport hub.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/around-700-houses-ready-for-people-displaced-by-pune-metro/71002415

Gujarat government gives nod for DLF's IT park in Gandhinagar

Six years later, Gujarat government had initiated action for withdrawal of the land allotment,

citing project execution delays.

DLF Ltd got a new lease of life for its 'stalled' project in Gandhinagar with the state government's

recent nod to the developer's plans. The Delhi-based realtor had in 2007 bought 25 acres of land from

the state government for about Rs 50 crore.

Six years later, Gujarat government had initiated action for withdrawal of the land allotment, citing

project execution delays. Recently, the government was forced to revisit its 2013 decision after DLF

won an appeal against the government's decision.

"Misinterpretation of technical jargon led to misleading translation causing the confusion," said a

government official in the know of the development. The project is back on track, he said.

DLF had challenged the Gujarat government's move to cancel its project before the Special Secretary

(Dispute) Revenue Appellate Authority.

The real estate developer told the authority that presence of high-tension wires in the area and

requirement of certain approvals from Special Economic Zone (SEZ) authorities had caused the

delay, said an industry official close to the development.



Link https://realty.economictimes.indiatimes.com/news/commercial/gujarat-government-gives-nod-for-dlfs-it-park-in-gandhinagar/71006254

The developer has already pumped in about Rs 100 crore in the project and has lined up further

investment of Rs 200-300 crore, the official said.

DLF got this land for developing an SEZ but later approached the state government to de-notify it for

building an IT park. The request was granted by the Gujarat government in 2009.

The project landed in controversy when some Congress leaders protested the government's decision

to allot prime land to the developer at a concessional rate.

The land parcel was allotted at Rs 5,000 per square metre which according to the Congress leaders

was much less than the then prevailing market rate of Rs 30,000 per square metre.

An inquiry in the matter by a government appointed commission, headed by retired Supreme Court

judge Justice M B Shah, gave a clean chit to the Gujarat government in the matter.

The country's largest real estate developer by market value had originally planned to invest Rs 850

crore for the Gujarat project planning to develop 2.5 million square feet of workspace.

A company official close to the development declined to comment on the matter.

___________________________________________________________________

Delhi HC dismisses builders' plea on inter-relationship of RERA &

Consumer Protection Act

The petition was filed by M3M India, Today Homes and Infrastructure, Ansal Crown

Infrabuild, Three C Shelters, Spaze Towers, Umang Realtech, among others.

Delhi High Court (HC) on Wednesday dismissed a plea filed by over 10 builders questioning the

inter-relationship of RERA and Consumer Protection Act (CPA), 1986.

The petition was filed by M3M India, Today Homes and Infrastructure, Ansal Crown

Infrabuild, Three C Shelters, Spaze Towers, Umang Realtech, among others.

According to the builders' petitions filed under Article 227 of the constitution it was questioned

whether proceedings under CPA can be commenced by home buyers against developers, after the

commencement of RERA.

While deciding on the matter, Delhi HC referred to the Supreme Court's (SC) verdict in matter

related to Pioneer Urban Land and Infrastructure which was delievered on August 9, 2019. In the

order SC had stated that remedies given to allottees of flat/apartments are concurrent, and such

allottees are in a position to avail of remedies under CPA, RERA, as well as trigger the provisions of

the Insolvency and Bankruptcy Code 2016.

However, builders argued that the finding of SC regarding concurrent remedies is applicable to cases

where complaints under CPA were instituted prior to RERA coming into force, in which case, RERA

gives the allottee an express option to withdraw pending proceedings under CPA, and proceed under

RERA instead.

Justice Prateek Jalan however noted that the issue was evidently raised before the SC, the apex court

noticed the relevant statutory provisions and rendered a clear and definite finding.

National Consumer Disputes Redressal Commission (NCDRC) in its order dated April 15, 2019, had

also said that the remedies offered under CPA and RERA are concurrent and jusrisdiction of the

forums/commissions constituted under CPA is not ousted by RERA.

"Therefore, it is held that the remedies available to the respondents herein under CPA and RERA are

concurrent, and there is no ground for interference with the view taken by NCDRC in these matters,"

said Jalan.

Homebuyers in the case were represented by advocate Aditya Parolia and Piyush Singh of PSP

Legal.



Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-hc-dismisses-builders-plea-on-inter-relationship-of-rera-consumer-protection-act/71013236

___________________________________________________________________

South Delhi civic body plans amnesty scheme to waive property tax

dues

"In the past, we have provided relief to tax payers in the authorised colonies, but now, we aim

to extend the benefit to the unauthorised ones. Also, they are not in the position to pay such

huge amounts," Gupta said.

South Delhi Municipal Corporation (SDMC) is likely to come up with an amnesty scheme in the next

two months to waive property tax due in unauthorised colonies till financial year 2016-17.

SDMC standing committee chairman Bhupender Gupta, on Thursday, asked the department

concerned to prepare a draft of the scheme to provide relief to the assesses of unauthorised colonies,

rural and urban villages.

"In the past, we have provided relief to tax payers in the authorised colonies, but now, we aim to

extend the benefit to the unauthorised ones. Also, they are not in the position to pay such huge

amounts," Gupta said.

He added that the departments have been asked to accept self-declaration of property owners, which

would be from the year of possession, as a certificate for calculating the house tax. "The decision will

come a long way in extending the tax net. Apart from this, they become regular in depositing their

property tax every year," he said.

To simplify the process, SDMC will look for easier method than the unit area for these

neighbourhoods. "The next amnesty scheme will include the cases assessed under rateble value

method where demand is outstanding on March, 2019,"said Gupta.

Clarifying its stand on the loopholes shown in the audit report tabled in standing committee meeting

last week, the leader of house Kamaljeet Sherawat said the outstanding amount includes over Rs 600

crore, which is due from DDA.

The audit report flagged that SDMC did not collect the property tax of Rs 1,177.5 crore from both

the government and the private properties during the period prior to 2004.

_________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/south-delhi-civic-body-plans-amnesty-scheme-to-waive-property-tax-dues/71011502

DLF's stock slips 4.7% over alleged relationship with Indiabulls Group

"The said allegations are malicious and are completely and unambiguously denied by us," DLF

said in regulatory filings at stock exchanges.

Shares of real estate major DLF slipped by 4.7 per cent in the morning trade on Friday even though

the company denied allegations of a relationship with the Indiabulls Group.

A draft of a purported Public Interest Litigation has been circulating on social media which makes

certain unfounded allegations in respect of the relationship between DLF Group and Indiabulls

Group, more specifically Indiabulls Housing Finance Ltd. Similar allegations had also been

circulated a few months back.

"The said allegations are malicious and are completely and unambiguously denied by us," DLF said

in regulatory filings at stock exchanges.

DLF Group has had financing transactions with the Indiabulls group since 2011 and all such

transactions were completed on an arm's length basis. Such transactions were fully compliant with all

legal requirements and regulations, it said.

"Following inflow of money through qualified institutional placement (QIP) and contribution made

by promoters towards warrants, we repaid all loans taken from Indiabulls by June 30, 2019 ahead of

schedule, except for one loan of Rs 175 crore which was down sold by IBHFL to a foreign bank and

is reflected in our books as such. As on date, no other amounts are owed by any DLF group company

to IBHFL or any other Indiabulls company," it said.

"We also emphatically deny any allegations of any other irregularity in any aspect of our past

relationship with Indiabulls. It may be pointed out that in 2014, a few years after we had commenced

the financing relationship with Indiabulls, in a completely unrelated transaction, we had advanced

certain money for a potential real estate opportunity with a company owned by promoters of

Indiabulls," the company added.

The DLF continued, "However, due to lack of tangible progress, the transaction was eventually

called off and the entire money was refunded. As on date, the DLF Group has no exposure or

investment in the Indiabulls group or any of the ventures of its promoters."

"We once again reiterate that allegations to the above effect are completely baseless and unfounded.

We are issuing this clarification only in the interest of our investors and in order to put at rest

unnecessary speculation on this issue," it said.

At 11:50 am, DLF was trading 4.7 per cent lower at Rs 151.80 per share while Indiabulls Housing

Finance dipped by 5.5 per cent to Rs 423.05 per share.



Link https://realty.economictimes.indiatimes.com/news/industry/dlfs-stock-slips-4-7-over-alleged-relationship-with-indiabulls-group/71010754

___________________________________________________________________

Huda to e-auction over 100 commercial sites in Panchkula

According to the information given by the Huda officials, two dates have been finalized for the

e-auction - September 20 and October 21.

The Haryana Urban Development Authority (Huda) would e-auction 103 commercial sites in 11

sectors of the city by the end of September.

According to the information given by the Huda officials, two dates have been finalized for the e-

auction - September 20 and October 21.

Residents can register for e-auction from August 29 but the exact details are yet to be finalized.

Sources informed that around 103 commercial sites in Panchkula would be up for offer during the

first e-auction.

The Huda officials are conducting a survey of physical availability of the sites and a list will be

prepared by September 15, the sources said.

They added that eight commercial sites in Sector 4, six sites in Sector 8, 11 sites in Sector 9, six sites

in Sector 10, three sites in Sector 11, three sites in Sector 12, seven sites in Sector 14, 15 sites in

Sector 15, 21 sites in Sector 16, 10 sites in Mansa Devi Complex (MDC) Sector 4 and 6 sites in

MDC Sector-5 would be up for offer as told by the Huda officials.

These commercial sites include Shop-cum-office (SCO), Double Storey Structure (DSS), Shop-cum-

Flat (SCF) and booths. The officials said that anyone can participate in the e-auction after registering

on their website www.hsvphry.org.in. Those interested have to deposit 2% of the reserve price of the

property to take part in the e-auction.

The reserve prices of the property will be decided by the Huda administrator after the completion of

survey of the sites.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/commercial/huda-to-e-auction-over-100-commercial-sites-in-panchkula/71010879

NCDRC orders Unitech to refund Rs 4.82 crore to home buyers

The commission also directed Unitech to pay Rs 25,000 each to the eight home buyers as cost of

litigation within three months.

The country's apex consumer commission has directed Unitech to refund within three months Rs

4.82 crore received from eight home buyers along with compensation for delay in handing over

possession in one of its projects which was to develop in Gurgaon.

The National Consumer Disputes Redressal Commission (NCDRC), in eight similar orders, has

directed the real estate giant to pay compensation at the rate of 10 per cent on the principal amount

paid by each home buyer, from the date of payment till the day refund is given.

"The opposite party (Unitech) shall refund the entire principal amount received from the complainant

along with compensation in the form of simple interest at 10 per cent per annum from the date of

each payment till the date of refund," said NCDRC Presiding member V K Jain.

The commission also directed Unitech to pay Rs 25,000 each to the eight home buyers as cost of

litigation within three months.

The complainants had booked residential flat with Unitech in its project 'Unitech South Park'.

Unitech had promised the home buyers to deliver possession of their respective flats within 36

months of the execution of the agreement.

The complainants alleged that possession was not offered to any one of them despite having paid

different amounts to the company.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/ncdrc-orders-unitech-to-refund-rs-4-82-crore-to-home-buyers/71012408

Noida Authority cancels lease deeds of SBI, Canara Bank, others

Others include Gopala Hotels at B 12 Rajnigandha shopping complex sector 15 (which owes

authority a sum of Rs 3.32 crore and KK Mishra of 1A block G sector 3 (owes Rs 1.61 crore).

The Noida Authority on Wednesday issued a recovery certificate following cancellation of lease

deed of three banks, a hotel and an individual allottee for non-clearance of revenue dues towards the

Authority.

These include State Bank of India, B block sector 2 which owes Noida Authority a sum of Rs 144.13

crore, Canara Bank which owes Rs 6.16 crore and Vijaya Bank owes Rs 1.67 crore in sector 6.

Others include Gopala Hotels at B 12 Rajnigandha shopping complex sector 15 (which owes

authority a sum of Rs 3.32 crore and KK Mishra of 1A block G sector 3 (owes Rs 1.61 crore).

"We will be cancelling more lease deeds of defaulters in coming days who have not cleared their rent

dues towards Authority," said Ritu Maheshwari CEO Noida Authority.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-cancels-lease-deeds-of-sbi-canara-bank-others/71002498

Bombay HC quashes NGT notice to Panchshil Realty's Trump Tower

project

“The project was then unoccupied and the developer did eventually set up an STP before

securing a final occupancy certificate from the Pune Municipal Corporation,” Panchshil‟s

lawyer Shrinivas Patwardhan told TOI on Friday.

The Bombay high court has quashed the National Green Tribunal‟s (NGT) notice of November 22,

2017, asking city-based Panchshil Realty to show cause why a penalty should not be imposed on the

developer for not setting up a sewage treatment plant (STP) at its Trump Towers project in

Kalyaninagar.

“The project was then unoccupied and the developer did eventually set up an STP before securing a

final occupancy certificate from the Pune Municipal Corporation,” Panchshil‟s lawyer Shrinivas

Patwardhan told TOI on Friday.

The HC bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre observed in an order

on September 4, “The NGT could have at best directed the Maharashtra Pollution Control Board

(MPCB) to pass necessary orders pursuant to the notice of March 10, 2017, issued (to Panchshil) by

the MPCB and not to take over the task of passing final order pursuant to the notice in question. The

reason is obvious. The statutory right of appeal available to the petitioner (Panchshil) was being

taken away by the NGT.”

The NGT‟s impugned (under challenge) notice had followed its order on November 20, 2017, in an

application filed in July 2015 by one Subhash Patil canvassing the cause of pollution of the Mula-

Mutha river water due to discharge of untreated effluent and the river getting reduced to a drain.

The tribunal‟s notice also came at a time when the MPCB had already issued a show-cause notice to

Panchshil on March 10, 2017, and its final order was still pending.

Panchshil pleaded in its petition that the NGT had exceeded its jurisdiction by taking over the task of

passing a final order and notice. Thereby, denying them the right to appeal (which incidentally lies

before the NGT) in case the MPCB‟s final order went against them.

The bench observed, “The show-cause notice issued by MPCB itself informs the project proponents

(Panchshil) that action proposed against them was firstly to disconnect the water and electricity

supply to the project and secondly to initiate action under the Environmental Acts and Rules. Thus,

the NGT could have at best directed the MPCB to pass necessary orders.”

“Under the circumstances, we dispose off the writ petition quashing the notice issued by the NGT to

the petitioner, but simultaneously direct the MPCB to pass a final order pursuant to the show-cause



Link https://realty.economictimes.indiatimes.com/news/regulatory/bombay-hc-quashes-ngt-notice-to-panchshil-realtys-trump-tower-project/71019001

notice, which was issued to the petitioner by the board on March 10, 2017,” the bench ruled.

Responding to Patil‟s application, the NGT had directed the state and the MPCB to file their

affidavits. The MPCB had submitted that 30 out of 189 project proponents in Pune had not complied

with the provisions of the Water (Prevention and Control of Pollution) Act, 1974.

It had named Panchshil among these 30 “non-compliant” project proponents and told NGT that it

would take action as proposed under the show-cause notices already issued to them. The NGT then

directed show-cause notices to the 30 project proponents.

___________________________________________________________________

Chandigarh Housing Board demolishes two illegal structures in Sector

40

The enforcement wing of the CHB has demolished 39 illegal constructions in the city till date.

The Chandigarh Housing Board (CHB) on Thursday demolished two free unauthorised constructions

in sector-40 and one more demolition of fresh unauthorised construction was scheduled for

demolition but the structure was demolished by the allottee himself prior to the exercise of the CHB.

The enforcement wing of the CHB has demolished 39 illegal constructions in the city till date. The

teams have identified 168 fresh construction cases in the city. The staff had even issued on the spot

challans to violators.

According to the procedure decided by the CHB, in case the allottee does not stop the ongoing illegal

constructions then it will be demolished on the very next day.

However, if the ongoing illegal constructions are stopped, the allottee will be given three days to

remove the violations. After the stipulated time period, the CHB officials will conduct a fresh

inspection and in case of non-removal of the violations, a demolition programme, at the risk and cost

of the allottee, will be scheduled to raze such structures.

A senior CHB official said that though necessary precautions are taken during the demolition, there

is still a possibility that adjoining structures may get damaged and the allottee will be responsible for

such extra damage to their own or adjoining units.

The committee dealing with need-based changes found that about 90% of the CHB dwelling units

had some or the other structural violation. The changes include additional rooms and toilets,

conversion of balconies into rooms and of courtyard, and building stairs on government land.

__________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-housing-board-demolishes-two-illegal-structures-in-sector-40/71005753

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