1031 octoct 2019 - credai · factors like slowdown in economy, lower tax realisation and subdued...

10-Oct-2019 31-Oct-2019

CREDAI Bengal Daily News Update | 31.10.19

WEST BENGAL NEWS

Kolkata: Over 10 Bowbazar buildings razed, soil to be stabilized

The East-West Metro authorities are set to start trials for “compaction grouting”, an

advanced ground improvement technique to stabilize the soil.

Sixteen buildings razed and most of the rubble cleared, the Bowbazar cave-in zone has now

been transformed into an expansive construction site.

But not much construction activity can take place unless the soil is strengthened.

The East-West Metro authorities are set to start trials for “compaction grouting”, an advanced

ground improvement technique to stabilize the soil.

With 16 of the buildings being pulled down, there is now enough space for proper grouting of

the subsidence zone, where houses collapsed and sprung huge fissures after a tunnel borer of the

East-West Metro corridor project hit an aquifer on August 31, as a result of which groundwater

flooded the west-bound underground tunnel. It took a fortnight to arrest the gushing water and

the consequent subsidence.

Since then, Kolkata Metro Rail Corporation (KMRC), agency implementing the Sector V-

Howrah Mero corridor, and ITD ITD-Cementation, construction company building the 2.45-km

twin tunnels between Esplanade and Sealdah, have been engaged in razing affected houses,

clearing debris and superficial grouting exercises.

Newspaper/Online ET Realty(online)

Date October 30, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/kolkata-over-

10-bowbazar-buildings-razed-soil-to-be-stabilized/71818260

Grouting in civil engineering refers to injection of pumpable materials into the soil to change its

physical characteristics and reduce the permeability. Grout is a mixture of cement and water.

Soil test revealed the disaster had destabilized a large area from Bowbazar to Sealdah and

increased the permeability of the soil. Tunnelling can’t be done unless the sandy and granular

soil is firmed up with mass grouting.

An open treatment zone is needed for mass grouting that requires columns to be inserted into

the ground. Sixteen structures have been razed. Another four or five may be demolished even

though a committee of technical experts has assessed the 70-odd houses in the zone and

recommended demolition of 27 unsafe buildings. Sources said the circular area needed to build

the retrieval shaft to pull out the tunnel boring machine (TBM), Chundee, has been carved out.

But the underground shaft, around 14m deep, can’t be built unless the soil is firm enough. The

second TBM, Urvi, that will complete its tunneling till Sealdah and take a u-turn to finish

Chundee’s work, will also need an improved ground condition to burrow safely. Both TBMs

will be lifted out of the shaft that will be built there.

“Now that there is clear space, major grouting to fill the voids within the soil can start,” said a

source. Trials will be held for “compaction grouting”, the advanced ground-improvement

technique. Experts said compaction grouting was at times more economic than conventional

approaches.

“Even as the technical committee, comprising JU and IIT professors, have recommended

demolition of 27 structures, we may restrict it to 20 or 21. In that case, some unsafe structures

will require extensive grouting, along with some other buildings in the area,” an engineer said.

OTHER NEWS

Govt unlikely to go for income tax cut due to fiscal stress

Pressure is mounting on the government to cut personal income tax rates to boost

demand, especially after the finance ministry reduced the corporate tax rate by up to 10

percentage points

The government is unlikely to moderate personal income tax rates for the rich due to fiscal

stress on account of lower tax realisation amid slowdown in the economy, sources said.

Pressure is mounting on the government to cut personal income tax rates to boost demand,

especially after the finance ministry reduced the corporate tax rate by up to 10 percentage

points.

According to sources, personal income tax rate cut is difficult at this juncture due to multiple

factors like slowdown in economy, lower tax realisation and subdued non-tax mop up.

The government last fiscal missed its direct tax collection target, and for this financial year it

has set a higher revenue mobilisation goal of Rs 13.80 lakh crore.

The government needs higher revenue to spend on social security schemes like Ayushman

Bharat, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), PM-

KISAN, and PM Awas Yojana, among others.

These schemes require funding at a time when there is already pressure on indirect tax

collection due to falling realisation from Goods and Services Tax (GST) and revenue

implication of massive Rs 1.45 lakh crore due to the corporate tax cut last month.

In the biggest reduction in 28 years, the government cut corporate tax rates by almost 10

percentage points as it looks to pull the economy out of a six-year low growth of 5 per cent

recorded during the first quarter of the current fiscal.

Sources also said the government has already given several exemptions to taxpayers, including

making income of up to Rs 5 lakh exempt from tax.

The government is gradually increasing spending social security and reducing tax burden on

lower income earners, sources said.

In order to collect more tax from the super-rich, the government in Budget 2019-20 enhanced

the rate of surcharge on individuals with taxable income of more than Rs 2 crore.

This raised the maximum marginal rate to 39 per cent for those earning between Rs 2 crore and

Rs 5 crore, while for those with annual income of over Rs 5 crore, the new maximum marginal

rate was 42.74 per cent.

Soon after the corporate tax rate cut, clamour for reduction in personal income tax rates gained

momentum.

Newspaper/Online India Today(online)


Link https://www.indiatoday.in/business/story/govt-unlikely-to-go-for-income-tax-cut-

due-to-fiscal-stress-1614216-2019-10-30

Even the panel on Direct Tax Code in its report favoured moderation in personal income tax,

simplification of procedure, and improving compliance with a view to raise revenue from direct

tax.

The share of direct taxes to India's total tax revenues peaked at 61 per cent in 2009-10 and has

since stabilised at around 55 per cent last year.

As a percentage of nominal GDP, tax revenues make up around 11 per cent, within which the

share of direct taxes has hovered around 5.5-6 per cent of GDP in the past three-four years.

Personal income tax collections amounted to Rs 4.7 lakh crore last year, or 2.5 per cent of GDP.

This year's target for personal income tax is budgeted to rise by an ambitious 23 per cent

compared to a subdued 10 per cent growth in 2018-19. ____________________________________________________________________________________

Fresh home loans fall 6% in Q1 FY20 due to NBFC woes: Report

According to a report by TransUnion Cibil, funding challenges are forcing NBFCs to shift

from larger-value loans to smaller-ticket personal loans, which are riskier.

Fresh disbursement of home loans and loans against property have fallen by 6% and 21%

respectively in the quarter ended June 2019 compared to the corresponding period of the

previous year due to stress in the non-banking finance company (NBFC) sector.

According to a report by TransUnion Cibil, funding challenges are forcing NBFCs to shift from

larger-value loans to smaller-ticket personal loans, which are riskier.

The slowdown in long-term loans like mortgages takes longer to be visible because loan growth

is calculated using the difference in the outstanding balance quarter-on-quarter. Because of their

long-term nature, outstanding loans continue to grow even when disbursements fall.

According to the TransUnion Cibil report, fresh disbursement of home loans by banks and

housing finance companies stood at Rs 1.2 lakh crore in the quarter ended June 2019, down 6%

from Rs 1.28 lakh crore in the year-ago period. Loans against property disbursed during the

quarter stood at Rs 30,300 crore, down 21% from the year-ago period.

“The NBFC liquidity crisis is becoming a serious concern, as it could have negative

ramifications on wider economic activity,” said Abhay Kelkar, VP (research and consulting),

TransUnion Cibil.

“Even though overall consumer credit delinquencies have remained largely stable through this

slowdown, our data indicates that there are some stress build-ups in NBFCs. While strong

lender risk management policies are always important for the health of the lending market, we

find ourselves increasingly in an environment where vigilant monitoring and thoughtful

strategies are essential to minimise the impact of a weakening portfolio performance,” he said.

NBFCs in general have been finding it difficult to raise funds in the wake of the IL&FS crisis.

In the case of housing finance, the second-largest private company — DHFL — had stopped

disbursing loans after a default. According to lenders, loan against property is largely availed by

owners of small businesses to get cheaper credit.

To that extent, the slowdown in this segment reflects a reducing in SME borrowing activity.

According to the report, consumer credit balances across all major credit products grew 17%

year-on-year (YoY) in the quarter ended June 2019, compared to 23.5% in the same quarter of

the previous year.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/fresh-home-

loans-fall-6-in-q1-fy20-due-to-nbfc-woes-report/71829180

Growth in credit cards and personal loans significantly outpaced increases in auto loans, home

loans and loans against property.

The fintech and NBFC segment continue to expand access to financing with the total number of

consumers with access to credit increasing by 21.7% in the quarter during the quarter YoY in

Q2 2019. Although still quite high in comparison to most major economies worldwide, this was

down materially from the 26.3% jump YoY in Q2 2018.

________________________________________________________________

Delhi to get its fourth construction waste plant by November

“We are racing against time, but are hopeful that the plant will be functional by next

month,” a senior engineering department official who is overseeing the project told TOI.

Delhi will get its fourth construction and demolition (C&D) waste plant in November. After the

recent spotlight on the capital’s inability to process at least 60% of its C&D waste, which is

contributing majorly to dust pollution, South Delhi Municipal Corporation has expedited its

work on its plant coming up at Bakkarwala.

“We are racing against time, but are hopeful that the plant will be functional by next month,” a

senior engineering department official who is overseeing the project told TOI.

The Bakkarwala plant will have the capacity to process over 500 metric tonnes of debris coming

in from construction sites across Delhi every day. During a recent review meeting with PMO on

air pollution in Delhi-NCR, SDMC had claimed that another 1,000 TPD plant would come up at

Maidangarhi.

Currently, Delhi has the capacity to process 2,650 MT of debris a day through its three plants

located at Burari (2,000 TPD), Shastri Park (500 TPD) and Rani Khera (150 MT). The Rani

Khera facility is run by DMRC.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/delhi-to-get-

its-fourth-construction-waste-plant-by-november/71818083

Collectively, these plants can process only about 40% of the C&D waste, turning them into

usable items, such as interlocking footpath tiles, recycled sand, stones and bricks. During the

review meeting, the issue of non-lifting of end products (tiles, bricks, etc) had also come up.

Though mandated by the Construction and Demolition Waste Rules, 2016, to use at least 20%

of the recycled items, even government firms are not purchasing them.

The civic bodies say about 6 lakh tonnes of end products are lying at the existing facilities,

along with 10 lakh tonnes of unprocessed debris. Earlier this year, IL&FS, which runs the

Burari facility, had reported that it incurred a loss of Rs 11.8 crore in its operation till March

2018.

“Only 2 lakh tonnes of end products have been lifted during this financial year,” a north

corporation official said. “NHAI is being pursued to use these materials in its projects outside

Delhi. Their targeted use is 10 lakh MT,” the official said.

The three civic bodies have also been directed to make an inventory of the C&D waste dumped

on government, DDA and municipal land. “Steps are to be taken to prevent any future dumping

on these government-owned plots,” the official said. The capital generates around 6,850 TPD of

construction debris.

________________________________________________________________

Apartment Ownership Act yet to be implemented in Rajasthan

The Act is need of the hour as it is mandatory for the developer to issue sub-lease to the

purchasers claiming their right on the land on which apartment is constructed.

Rajasthan Apartment Ownership Act despite getting a nod from the President months ago is yet

to be implemented. This Act gives land rights to flat owners on the land on which an apartment

is constructed.

The Act is need of the hour as it is mandatory for the developer to issue sub-lease to the

purchasers claiming their right on the land on which apartment is constructed. Currently,

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

However, the UDH department, because of its laidback approach, has failed to implement the

Act. Like the Real Estate Regulatory Authority (RERA), the new Act was expected to bring

more transparency and protect the interests of home buyers.

Sources further said as per the Act, every person to whom any apartment is allotted, sold or

transferred by the promoter, will be entitled to exclusive ownership and possession of the

property.

The Rajasthan Apartment Ownership Bill was passed in the state assembly on April 8, 2015. An

official informed that on April 24, the Bill was sent to the central government for approval. The

Centre directed the government to remove clauses 6, 11 (1) & (2) from the draft of the Bill to

avoid conflict with the Centre’s Real Estate Bill.

“The governor in February 2018 sent the Bill to the state government for re-examination. The

amended Bill was passed in March in the assembly. The Bill, which was sent in April 2018 to

the President of India, was waiting for the final nod in July,” said the official.

Once implemented, it will be mandatory for the developer to show the title deed of the land on

which the apartments are proposed, the approved building plans, details of common areas and

limited common areas to the buyers.

A senior official at JDA said, “A builder will have to furnish a written commitment to pay a

requisite penalty in case of missing the deadline for the proposed project. At the time of

booking of an apartment, developers will declare the penalty for delay in completion and

handing over possession.”



Link https://realty.economictimes.indiatimes.com/news/industry/apartment-

ownership-act-yet-to-be-implemented-in-rajasthan/71812717

Goa to set up construction waste recycling plant with Irish

technology

The facility is likely to come up in North Goa while a waste to energy plant is proposed for

South Goa.

Goa government will set up a construction and demolition (C&D) waste recycling facility based

on Irish technology with assistance from SINTEF Norway, minister for science and

technology Michael Lobo announced on Tuesday.

The facility is likely to come up in North Goa while a waste to energy plant is proposed for

South Goa.

Both plants will come up on the public-private partnership (PPP) model, Lobo said, while

speaking to reporters in Norway. SINTEF will finalise the detailed project report within a

month of deciding the site for the C&D waste plant.

Lobo said that establishing a C&D plant in Goa will help clear construction debris and help

recycle stone aggregates and sand.

“Recycled aggregates and sand can be used for construction and those buying it will be given

around 15% subsidy,” he said.

A state government delegation has visited Velde Industries at Stavengar to understand the

working technology of a C&D treatment facility, and Fortum at Oslo to understand the

technology that converts waste into energy.

At present, Goa generates around 500 tonne of C&D waste each day, which is unproductively

disposed along the national highways, in low lying lands and abandoned quarries.

Lobo said the C&D plant can recycle and produce sand and aggregates, which could also be

utilised for construction purposes and manufacturing of precast cement products such as pavers.

In light of the petition filed by a NGO in the high court challenging environmental clearance for

sand extraction in Goa’s rivers and the state government not having issued any permits for sand

extractions since the year 2018, the sand from the C&D plant will prove useful, sources said.

Similarly, with limited stone quarries operating in Goa, the recycled aggregates can meet

various construction demands, sources added.

As per the ministry of environment, forest and climate change notified Construction and



Link https://realty.economictimes.indiatimes.com/news/allied-industries/goa-to-set-

up-construction-waste-recycling-plant-with-irish-technology/71816641

Demotion (Waste Management) Rules, 2010, the state is expected to establish a C&D waste

recycling plant. The National Green Tribunal (NGT) has directed chief secretaries of every state

to monitor and ensure compliance with all waste management rules, including C&D rules.

During the presentation, senior scientist from SINTEF, Christian Engelsen said that the C&D

recycling process is in tune with the concepts of reuse and recycle and circular economy, which

have been adopted by Norway and other Scandinavian countries.

The delegation also visited a waste to energy facility.

Currently, Goa collects about 55 tonne of refuse-derived fuel (RDF) per day of which 30 tonne

from Saligao waste management plant and 25 tonne from village panchayats are baled at Verna

and sent to cement plants for co-incineration.

Lobo said that the state is presently depends on neighbouring states for RDF co-incineration and

that such a plant would help Goa become self-sufficient in treating RDF. The waste to energy

plant will generate electricity and help in disposal of RDF retrieved from remediation of legacy

dumps, he said.

________________________________________________________________

HDFC acquires 9.89% stake in Bandhan Bank

Earlier this month, the bank merged with Gruh Finance, which brought down the

shareholding of the promoter from 82.26% to 60.96%

The merger was part of the stake dilution exercise to meet the Reserve Bank of

India's (RBI) stipulation

Mortgage firm HDFC Ltd has acquired 9.89% stake in Bandhan Bank as part of scheme of

merger.

As many as 15.93 crore shares of the bank was transferred to HDFC Ltd, Bandhan Bank said in

a regulatory filing.

Earlier this month, the bank merged with Gruh Finance, which brought down the shareholding

of the promoter from 82.26% to 60.96%.

The merger was part of the stake dilution exercise to meet the Reserve Bank of India's (RBI)

stipulation.

The RBI on Tuesday imposed a penalty of ₹1 crore on Bandhan Bank for not bringing down the

promoter shareholding to 40% as per the central bank timeline.

The filing further said the scheme of merger between Gruh Finance, affordable housing finance

company promoted by HDFC Ltd, and Bandhan Bank was approved by all the requisite

authorities and the shareholders and creditors of both the merging companies.

The effective date of the scheme was October 17.

In accordance with the scheme of merger, 9.89% stake of the total share capital of Bandhan

Bank has been alloted to HDFC Ltd, it said.

_______________________________________________________________

Newspaper/Online Live Mint(online)


Link https://www.livemint.com/industry/banking/hdfc-acquires-9-89-stake-in-

bandhan-bank-11572454254045.html

Haryana RERA asks Piyush Heights' residents to pool in money to

finish project

Over 100 residents of Faridabad’s Piyush Heights society have agreed to pool in R 8 lakh

each to complete the project and move in to their dream home.

In first of its kind order the Real Estate Regulatory Authority (RERA) of

Haryana’s Panchkula has asked a group of residents to take over a project and complete the

remaining construction work.

Over 100 residents of Faridabad’s Piyush Heights society have agreed to pool in R 8 lakh each

to complete the project and move in to their dream home.

“It is a major relief for homebuyers, who were expecting completion by 2011 by could not get it

as builder failed to complete the project. RERA suggested us to form a association and we

should be ready to pay extra money if needed,” said MC Jain, president of J&K tower of Piyush

heights.

There are 16 residential tower in the society and the builder had given possession of 14 towers.

The remaining two towers left uncompleted and the buyer had moved RERA as the builder

could not give possession.

“We will pay 15-20% extra but at least we will get the flat,” Jain added. The buyers found that

directors of Company are in Jail and construction was stalled.

According to RERA order, the builder failed to appear despite public notices and in the sixth

hearing, a representative of builder asked for adjournment.

RERA refused an adjournment to the respondents. Some of the unsold flats will be sold by the

district authority to recover cost.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/haryana-rera-asks-

piyush-heights-residents-to-pool-in-money-to-finish-project/71829131

Homebuyers' lobby objects to MahaRERA's decision to register

builders as SROs

In a letter to MahaRERA, the Forum for People’s Collective Efforts (FPCE) said the Real

Estate (Regulation and Development) Act, 2016 (RERA) does not provide any provision to

set up or register SROs of real estate developers.

A home buyers' lobby group has objected to the Maharashtra Real Estate Authority’s

(MahaRERA’s) decision to register realty developers and project promoters as self-regulatory

organisations (SROs) with the authority, calling the move 'arbitrary' and 'legally untenable'.

In a letter to MahaRERA, the Forum for People’s Collective Efforts (FPCE) said the Real

Estate (Regulation and Development) Act, 2016 (RERA) does not provide any provision to set

up or register SROs of real estate developers. ET has seen a copy of the letter sent last week.

Earlier this month, MahaRERA created a mechanism to register SROs and granted its first

certification to the National Real Estate Development Council (NAREDCO), a developers’

body, as an SRO for promoters whose projects are registered with the state authority.

The SRO is expected to encourage its members to comply with the provisions of the RERA Act,

rules, orders and circulars issued by MahaRERA. It will be responsible for carrying out

awareness and education activities among its members.

“What is the basis for MahaRERA to assume that even if promoters are told by SROs, they will

abide by their directions? Does MahaRERA consider SROs to be more effective and powerful

than itself that it believes that promoters will listen to SROs, but not to MahaRERA?” the

FPCE’s letter said.

While announcing the decision to register realty developers and project promoters as SROs, the

regulator had said that the SROs will help ensure greater professionalism among realty

developers, help in bringing in consistency in their practices, help in enforcement of code of

conduct and discourage fraud.

“The builder-bureaucratic-political nexus has been responsible for virtually crippled justice

delivery for troubled homebuyers” said FPCE president Abhay Upadhyay, adding that if builder

bodies are given registration by MahaRERA, it will create havoc. “Will it not become a tool for

them to exploit homebuyers more, as they will have legal recognition from the authority itself,”

said Upadhyay, who is also member, Central Advisory Council, RERA.



Link https://realty.economictimes.indiatimes.com/news/industry/homebuyers-lobby-

objects-to-mahareras-decision-to-register-builders-as-sros/71816236

The registration of an SRO will be valid for a period of five years, the regulator had said in a

circular a fortnight ago.

The proposed SRO is expected to have at least 500 MahaRERA registered projects of their

members and has to be a group or association or federation of project promoters, which is a

legal entity.

According to FPCE, the said order has created another stakeholder for MahaRERA to manage

and regulate, besides the stakeholders as provided in RERA, and this would be time consuming.

It has suggested focusing on issues and execution of recovery warrants in 90 days, inspecting

escrow accounts, adherence to projects’ sanction plan, and keeping a tab on projects’ schedules.

The homebuyers’ body has requested the authority to withdraw the said order and ensure that it

is not acted upon, and that MahaRERA should focus only on the provisions under RERA.

________________________________________________________________

Noida Authority cancels allotment of property to Unitech over Rs

1,203 crore dues

The property concerned is located in Sector 113 where the real estate group had also come

up with 17 towers without getting the map cleared by the authority, in violation of the

Noida Building Regulation, 2010, it said.

The Noida Authority on Wednesday said it has cancelled the allotment of a group housing

property to crisis-hit realtor Unitech over non-payment of dues worth Rs 1,203 crore.

The property concerned is located in Sector 113 where the real estate group had also come up

with 17 towers without getting the map cleared by the authority, in violation of the Noida

Building Regulation, 2010, it said.

"The allotment was cancelled on October 21 on instructions of Noida Authority CEO Ritu

Maheshwari who has directed officials to reclaim possession of the property within 15 days,"

the authority said in a statement.

"The non-payment of dues includes those accruing from EMIs, interest, lease rent, construction

delay by Unitech worth Rs 1,203 crore," it added.

"The allottee (Unitech) was served a notice on August 24 and multiple other notices prior to

that, in which it was asked to clear the pending dues. It could not present any satisfactory

explanation within the stipulated time limit and hence the action," the authority said.

The group is also accused of trying to have an agreement to sell 19,181.50 sq metre of land to

M/s Sethi Residents and M/s GMA Developers, making them third-party, without seeking the

authority's permission.

"This was done in violation of the lease law," the authority had said earlier.

Unitech representatives could not be contacted immediately for a response.

_______________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-authority-

cancels-allotment-of-property-to-unitech-over-rs-1203-crore-dues/71829106

Faridabad civic body demolishes over 30 farmhouses built on forest

land

These houses, built in the vicinity of Kant Enclave, violated provisions of the Punjab Land

Preservation Act (sections 4&5) and had been asked by the Supreme Court to be

demolished.

The Faridabad municipal corporation on Monday resumed action against farmhouses built on

forest land and partially demolished 39 of them in Anangpur village.

These houses, built in the vicinity of Kant Enclave, violated provisions of the Punjab Land

Preservation Act (sections 4&5) and had been asked by the Supreme Court to be demolished.

Civic agency officials said the demolitions had started after October 17. Although the original

structures haven’t been demolished yet, boundary walls, platforms and other demarcating

constructions have been pulled down.

The move came after environmental activists criticised the civic agency for delaying the

demolition of farmhouses despite a Supreme Court directive to this effect. Officials, however,

said assembly elections had led to the delay in carrying out the drive.

“The demolition was delayed by a few days due to the elections. Most officials were busy in

poll duty,” said an official. He added that the municipal corporation was carrying out a survey

of all forest areas to identify places that have been encroached upon. “The survey was held up

due to the elections. But we will resume our study of forest areas next week. It is expected to be

completed by the end of this year,” he added.

On September 11, 2018, the Supreme Court had ordered the demolition of houses to check

illegal constructions on the Aravalis, in keeping with provisions of the Punjab Land

Preservation Act (PLPA), 1900. “Kant Enclave is a forest or forest land or is required to be

treated as a forest or forest land,” the apex court had stated in its order.

It had directed the Haryana government to demolish unauthorised structures built in the area.

The apex court had also directed the authorities to deposit Rs 5 crore for rejuvenating the

damaged area and to pay compensation to the affected houses owners.

The colony has 42 occupied plots and about 60 families live in the colony.



Link https://realty.economictimes.indiatimes.com/news/regulatory/faridabad-civic-

body-demolishes-over-30-farmhouses-built-on-forest-land/71821877

Hyderabad civic body fines commercial spaces & residents for

flouting norms

In the last five months, GHMC has collected Rs 1.5 crore from commercial establishments

and residents in the form of fines for various violations.

Continuing its crackdown on commercial establishments and residents for flouting civic

norms, GHMC on Tuesday penalised a house owner of Patrika Nagar in Hi-Tec City by

imposing a fine of Rs 10 lakh for dumping debris in the open.

In the last five months, GHMC has collected Rs 1.5 crore from commercial establishments and

residents in the form of fines for various violations.

“The Patrika Nagar resident, Rajnikanth, was penalised for dumping debris in the open. Also,

he did not ensure structural stability of a wall of his under-construction house which had

collapsed,” said a GHMC official. The plot where a five floor building is being raised is located

adjacent to Patrika Nagar park.

On October 26, a hotel was fined Rs 1 lakh for draining water onto the road, a builder was

penalised Rs 5 lakh for damaging the road prior to that. From May 24 to October 10, the

corporation collected Rs 1.03 crore from 8,475 establishments.

“As on today, we collected Rs 1.5 crore towards penalties, which are being imposed as part of a

special drive to improve the city’s sanitation,” said a senior GHMC official.

The highest penalties have been collected in Chanadanagar circle (Rs 16,90,300) followed by

Serilingampally circle (Rs 13,90,200) and Khairatabad circle (Rs 8,41,400).

Dumping of debris and garbage in nalas and in the open, draining water onto the roads, littering

public places, usage of banned plastic bags, burning of garbage and unhygienic premises and

running business without trade licence are some of offences committed by managements of

commercial establishments.

Sources said GHMC is also trying to mop up its revenues by collecting property tax dues and

floating bonds. GHMC has also decided to raise money through rupee term loan (RTL). The

money raised through bonds and RTL would be used for projects being built under SRDP,

sources said.



Link https://realty.economictimes.indiatimes.com/news/regulatory/hyderabad-civic-

body-fines-commercial-spaces-residents-for-flouting-norms/71812784

1031 octoct 2019 - credai · factors like slowdown in economy, lower tax realisation and subdued...

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