11-sept-2019 - credai bengalcredaibengal.in/wp-content/uploads/2019/09/11sept19-cb... ·...

11-Sept-2019

CREDAI Bengal Daily News Update | 11.09.19

Over 100 institutes in Chandigarh to apply for their first fire NOC

The fire and emergency services department has formed teams to assess the equipment

and other parameters of these buildings for a no-objection certificate (NOC).

In the past more than a month, 106 educational institutes of the city, including some elite

schools, have applied with the municipal corporation for their first-ever fire-safety clearance.

The fire and emergency services department has formed teams to assess the equipment and

other parameters of these buildings for a no-objection certificate (NOC).

The squads will visit coaching centres, government and private schools, as well as colleges.

Most of the NOC requests have come from the southern sectors.

An MC official dealing with the task said: "The department has gathered details of each

building's size, area, and floor count before the inspection."

It’s an eye-opener that over a hundred educational institutes in the city had

not thought of complying with fire-safety certification, in utter disregard for

the lives of thousands of students. It’s shocking that even tony schools chose

to skirt this mandatory requirement, and woke up only when the authorities

got tough. It’s imperative that fire precautions are adequate and equipment

functional. They should also ensure that everyone knows the emergency

evacuation drill. TimesView

Sources in the MC said that since thousands of students, teachers, and employees sat in these

these private and government buildings, the structures must meet the fire-safety standards to

avoid a tragedy such as the May 24 blaze in a Surat coaching centre that claimed 19 lives.

The fire service department gets support teams from the offices of various subdivisional

magistrates (SDMs).

Newspaper/Online ET Realty (online)

Date September 10, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/over-100-institutes-in-chandigarh-to-apply-for-their-first-fire-noc/71064327

Gurugram development body to rope-in realtors for construction of

SPR

The development authority, according to sources, has already held a meeting with a few

developers and urged them to share the project cost and help with the design.

The GMDA will rope in developers for the redevelopment of Southern Peripheral Road (SPR)

and carry out the project along the same lines of Golf Course Road, which was developed with

the help of DLF.

The development authority, according to sources, has already held a meeting with a few

developers and urged them to share the project cost and help with the design.

The authority has invited suggestions from multiple developers and a meeting was held over the

weekend, an official said. The meeting saw participation of developers like M3M India, Ireo

World, Tata Realty and Infrastructure and Adani Realty apart from senior GMDA officials.

The authority has given these developers three weeks‟ time to revert with their suggestions on

the detailed project report (DPR). “The developers have been asked to share their suggestions

on the design. We will consider these suggestions depending on their relevance. Also, they have

been urged to share the project cost,” said a senior GMDA official.

Another GMDA official confirmed the reports. “There may be suggestions for a U-turn or

extension at some junctions for the benefit of people living in some highrises. We will consider

these suggestions, but we are not bound to incorporate these changes,” he said.

TOI also spoke to a few developers who confirmed that they have been approached by GMDA

for suggestions on the design and redevelopment of SPR. “We will be providing our inputs

within the stipulated time frame,” said Tarun Mehrotra, business head, north and east India,

Tata Realty & Infrastructure.

Another developer confirmed that GMDA has proposed to adjust the pending external

development charges (EDC) against the project cost. “Some developers have to pay EDC dues,

and GMDA has made a proposal to adjust that against the project cost,” a representative of yet

another city-based developer said on condition of anonymity.

The same model was adopted for the development of Golf Course Road as well, where the

government had adjusted DLF‟s pending EDC charges against the project cost.

Developers such as M3M and Ireo have many projects along SPR. “M3M has several projects

on Golf Course Road Extension, which is part of SPR. These projects include M3M Golf



Link https://realty.economictimes.indiatimes.com/news/infrastructure/gurugram-development-body-to-rope-in-realtors-for-construction-of-spr/71058086

Estate, M3M Merlin, M3M Urbana, M3M Tee Point and M3M Cosmopolitan. The construction

and widening of the stretch from four to six lanes will benefit residents in the area and even

commuters,” said Pankaj Bansal, director, M3M Group.

The state government had approved the project report of SPR redevelopment just last week. The

project would cost the government Rs 230 crore, and will be ready within a year and a half from

the day the work begins. The road will have two flyovers and three underpasses. While the

underpass at Vatika Chowk will be developed by NHAI, rest of the project will be executed by

GMDA.

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Trichy: Residents submit pleas to roll back property tax hike

According to the Federation of Trichy City Residents Welfare Associations (FTCRWA),

the recent property tax revision which has been hiked to 80% across the city has put a

burden on the residents.

Unhappy over the 12-fold surge in property tax, residents belonging to 100

Residents Welfare Associations (RWAs) from 65 wards of the city submitted petitions en masse

to the Trichy corporation on Monday.

Residents argued that the steep hike in property tax is an injustice to residents as there is no

elected council in the civic bodies.

According to the Federation of Trichy City Residents Welfare Associations (FTCRWA), the

recent property tax revision which has been hiked to 80% across the city has put a burden on the

residents.

Claiming that the civic body has asked the arrear for the past years to be paid at a stretch,

residents said that their economic condition hinders them from embracing the tax hike.

“Thiruverumbur locality which was added to the corporation in 2011 has not seen any major

development. The infrastructure is very same as it was before being added to Trichy

Corporation. At this juncture, the exorbitant tax hike is an unfair attempt,” Pa Lenin, a

Thiruverumbur resident said.

Residents claimed that the corporation has been threatening the locals through phone calls to

pay the pending property tax or their properties will be impounded.

Pointing out the absence of elected council in the local body for the past three years now,

residents submitting petitions had urged the officials and state government to let the elected

council of municipalities and municipal corporations decide the percentage of hike in property

tax.

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Link https://realty.economictimes.indiatimes.com/news/industry/trichy-residents-submit-pleas-to-roll-back-property-tax-hike/71061856

Gujarat HC asks government bodies to respond to Varsha Flats

residents' plea

Apoorva Shastri and Jigar Upadhyay requested the SSRD to implead them in the hearing

of appeals filed by the occupants of Varsha Flats.

Residents of Varsha Flats in Paldi moved the Gujarat high court against the decision of the

special secretary, revenue department (SSRD), to hear the objections of two persons belonging

to the Hindu Jagran Manch, against their appeal to have the property sale regularized under the

Disturbed Areas Act.

Apoorva Shastri and Jigar Upadhyay requested the SSRD to implead them in the hearing of

appeals filed by the occupants of Varsha Flats.

The appeals were filed against the district collector‟s decision rejecting the demand to

regularize the sale of flats by Hindus to the Muslim occupants, at the Jankalyan Cooperative

Housing Society Ltd, Paldi.

The SSRD granted Shastri and Upadhyay permission to join the hearing and object to the

demand for regularization of sale of property.

The SSRD impleaded Shastri and Upadhyay in the hearing, considering them to be affected

parties; their objections would make the picture clearer; and that they were party before the high

court in a litigation pertaining to Varsha Flats.

The due claimed before the SSRD that they had received representations from 50 societies

objecting to the sale of Varsha Flats to members of the Muslim community.

The occupants of Varsha Flats objected to the SSRD impleading the duo. The HC was also

requested not to permit the SSRD to expeditiously hear the matter regarding Shastri and

Upadhyay‟s objections.

They cited numerous judgments by the high court saying that a third party‟s objection cannot be

considered in the sale of property under the Disturbed Areas Act once the seller voluntarily sells

the property and gets a fair price for it.

After hearing the matter, Justice A Y Kogje issued notice to the state government, Shastri and

Upadhyay and sought their replies by September 18.

The HC also asked the SSRD to adjourn hearings till the high court takes a decision on the

petition filed by occupants of Varsha Flats.



Link https://realty.economictimes.indiatimes.com/news/regulatory/gujarat-hc-asks-government-bodies-to-respond-to-varsha-flats-residents-plea/71061970

________________________________________________________________

Chandigarh Housing Board stops transfer of flats served with

violation notices

The Chandigarh Housing Board (CHB) has stopped transfer of flats served with

violations.

The Chandigarh Housing Board (CHB) has stopped transfer of flats served with violations.

If an allottee, who was served notice by the board, want to sell his flat, the owner will have to

first remove the violation. The move will affect more than 50,000 allottees who have made

need-based changes in their houses.

CHB secretary Ruchi Singh said that board will transfer flats served notices only after removal

of violations.

To safeguard innocent buyers, the board had recently decided to give both sellers and

purchasers the option of filing a joint application for flat inspection for a certificate that says the

unit is free of building violations at that point of time.

For the physical survey to begin, the house owner will have to submit an application fee of Rs

5,000.

The committee formed by the CHB, dealing with need-based changes, had found that about

90% of CHB dwelling units had some or the other structural violation.



Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-housing-board-stops-transfer-of-flats-served-with-violation-notices/71062824

The changes include additional rooms and toilets, conversion of balconies into rooms and of

courtyard, and building stairs on government land.

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Ghaziabad: Vasundhara, Siddhartha Vihar property rates hiked

by 16%

Its board that met in Lucknow on September 5 has decided to increase the rates by 16%

for properties in Vasundhara and Siddhartha Vihar.

The Uttar Pradesh Housing Board has increased sector rates in its areas and the revised prices

have come into effect retrospectively from September 1, officials said.

Its board that met in Lucknow on September 5 has decided to increase the rates by 16% for

properties in Vasundhara and Siddhartha Vihar.

“In August, we had proposed a 16% hike in sector rates and that has been vetted by the board of

the UP Housing Board,” said an official at the UP Housing Board. “On the basis of the

prevailing market rates and other factors, we had proposed a hike in sector rates, which the

board has agreed to,” the official added.

According to the revised rates, in the even sectors of Vasundhara, the rate is now Rs 65,800/sq

m. Earlier, it was Rs 56,700/sq m. In the odd sectors of Vasundhara, the revised rates are Rs

59,400/sq m. It was Rs 51,200/sq m in the last fiscal. There are 19 sectors in Vasundhara.

The increased sectors rates will also have a bearing on group housing societies and commercial

establishments. “As a rule, sector rates in group housing societies is 1.5 times the residential

rates and it has been hiked in the same ratio in Vasundhara,” the official said. The sector rates

of commercial properties are twice the residential rates.

Siddhartha Vihar is another area administered by the UP Housing Board and here, the hiked

circle rate is Rs 55,600/sq m, up from Rs 43,800/sq m that was last year.

The rates in Ganga, Yamuna and Hindon housing schemes in Sidharth Vihar have also been

hiked in the same ratio. “In Ganga, Yamuna and Hindon Housing Scheme, the sector rate last

year was Rs 37,700/sq m. Now it is Rs 43,800/sq m,” said the official.

Around 10 private developers are currently engaged in Siddhartha Vihar township and

construction is going on in full swing. In five years, around 3 lakh 30,000 people are expected

to occupy the flats that are being constructed in different private group housing schemes.

The hiked sector rate is going to affect the prospective buyers at a time the real estate sector is

going through a slump.

An official said: “The rates have been hiked in Siddhartha Vihar to incorporate Ganga Jal water



Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad-vasundhara-siddhartha-vihar-property-rates-hiked-by-16/71057954

charges that the township will be getting because of proximity to Pratap Vihar Ganga Jal water

treatment plant.”

There is a proposal to provide 12.5 cusecs of Ganga water to Siddhartha Vihar, said another

official.

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Bengaluru civic body orders survey of dilapidated buildings

BBMP chief warned of strict action against property owners who fail to act against such

buildings.

Bruhat Bengaluru Mahanagara Palike (BBMP) commissioner BH Anil Kumar on Monday

ordered a survey of dilapidated buildings in the city.

After inspecting the spot in Vivekananda Colony, Puttenahalli, JP Nagar 7th Phase, where the

ground floor of a three-storey building had caved in on Sunday, Kumar directed all chief

engineers to inspect their jurisdictions and submit a report on dilapidated buildings.

He warned of strict action against property owners who fail to act against such buildings. He

said owners should furnish property details and stability reports to officials so that further action

can be taken.

"Old properties should be inspected. Engineers should issue directions to conduct necessary

repairs or the owner should be asked to demolish the property," he said.

The Vivekananda Colony building, meanwhile, was razed on Sunday night. Police confirmed

the demolition work was over by Monday morning.

Police said five families were living on the first and second floors, and four shops were located

on the ground floor.

Members of four families collected their belongings. But one occupant, Venkata Reddy, a

private firm employee, didn't shift his possessions. His belongings, including a refrigerator,

were damaged in the demolition.

"Efforts are on to trace Gautam, the building owner. But we have not received any complaint,"

police said.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/bengaluru-civic-body-orders-survey-of-dilapidated-buildings/71062989

Ulhasnagar civic body to regularise 850 Illegal buildings

The notification was issued on Monday by the state Urban Development department.

In a relief to occupants of 855 illegal buildings in Ulhasnagar, the state government appointed

the city's civic chief as the designated authority to regularise these buildings.

The notification was issued on Monday by the state Urban Development department.

The state had decided in 2006 to regularise these structures under a special law after the

Bombay high court ordered their demolition.

In 2006, the state appointed the Thane collector as designated authority to regularise the

buildings, but due to heavy workload, the collector had regularised around 50 buildings out of

95 that had applied for regularisation.

MLA Jyoti Kalani said the order will bring relief to lakhs of residents. The collector, due to his

busy schedule, took long to regularise the structures.

___________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/ulhasnagar-civic-body-to-regularise-850-illegal-buildings/71064103

Staff shortage in Tamil Nadu RERA delays registration of projects

The RERA Act mandates registration of all ongoing housing projects with a minimum of

eight units and 5000 square feet including housing layouts meant for sale.

Developers are complaining that their projects are delayed as staff shortage has hit registration

of housing projects with the Tamil Nadu Real Estate Regulatory Authority (TNRERA).

The RERA Act mandates registration of all ongoing housing projects with a minimum of eight

units and 5000 square feet including housing layouts meant for sale.

Following concerns over lack of staf slowing work, the real estate regulator is formalising

service rules to appoint permanent workers.

According to industry sources, registration of housing projects with TNRERA consumes a

minimum of two months. "RERA registration is crucial because housing projects would qualify

for loans only after nod from the TNRERA. Moreover, housing units cannot be publicised or

sold to customers in the absence of the RERA registration number," a developer who preferred

to stay anonymous said.

"We have done three registrations in the last two years and acute shortage of staff is affecting

speedy disposal of applications," another developer engaged in construction of commercial

office spaces said.

TNRERA's registration dipped this year with 256 housing projectsunder its ambit till September

4, while 380 projects were registered during the corresponding period of 2018.

Though TNRERA has 26 sanctioned posts, it hardly has a handful of workers on payrolls with

retired officials from the Chennai Metropolitan Development Authority being appointed in

senior positions.

Confederation of Real Estate Developers' Association of India (CREDAI) TN chairman, S

Sridharan, said the developer's body got complaints from their members over delay in

registrations with the TNRERA. "The authority must fix a deadline for registrations," he said.

K Gnanadesikan, chairperson of TNRERA, said incomplete applications, which is a lacuna on

part of developers, were the main reason for delays.

"Moreover, there is no dip in registrations because we are receiving fewer number of

applications this year compared to 2018. So far, more than 1100 projects have been registered

across TN, since the inception of TNRERA in June 2017," he added.



Link https://realty.economictimes.indiatimes.com/news/regulatory/staff-shortage-in-tamil-nadu-rera-delays-registration-of-projects/71064972

________________________________________________________________

Greater Noida authority serves notice as Gaursons installs artificial

carpet in 'green' area

This is the third notice that has been served to the company in the last two years with the

first being served in December 2017. The builder has not installed natural grass till date.

Greater Noida Industrial Development Authority (GNIDA) has served notice to Gaursons

Hitech Infrastructure, a Gaurs Group company, over installation of artificial green carpet in the

mandatory green area of its residential project.

This is the third notice that has been served to the company in the last two years with the first

being served in December 2017. The builder has not installed natural grass till date.

Ranjeet Singh, one of the residents of sixth (6th) avenue of Gaursons City, had complained to

the authority that builder has installed artificial green carpet instead of mandatory natural grass.

"The builder has also constructed concrete parking in part of the mandatory green area, which

also violates the environment protection act 1986," said Anita Prajapati, resident of the society.

Based on the complaints GNIDA carried out an inspection in which it was found that the

builder has indeed violated the norms.

In the recent notice, builder has been given 30 days to install natural grass in the project.

"We also gave an application to the authority on September 9 pleading that only issuing notice

will not serve the purpose as two years have passed. We demand that OC should be declared

'on-hold' till all conditions are met," said Amit Sharma, another resident of the society. The

project was given occupancy certificate (OC) on April 29, 2016.

Gaurs Group didn't respond to the emailed query till the publishing of the article.

________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/greater-noida-authority-serves-notice-as-gaursons-installs-artificial-carpet-in-green-area/71069604

Morgan Stanley lowers price targets on NBFCs with real estate

exposure

Analysts expect a prolonged slowdown with shrinking Return on Equity (ROE).

Morgan Stanley has cut its price targets on shares of lenders with real estate exposure

including Edelweiss, Indiabulls Housing, LIC Housing and PNB Housing by 15-50% citing

higher credit costs, slowing economy and shrinking profitability.

“The credit crunch faced by real estate lenders has lasted a year, with no solution in sight,” said

the brokerage‟s analysts in a client note.

“The economy is slowing, which will likely hurt housing demand. Risk of multi-year woes for

these NBFCs is mounting.”

Morgan Stanley said it expects a prolonged slowdown with shrinking Return on Equity (ROE).

“…most of them will struggle to get funding to scale up the more profitable developer financing

business and will have to both de-risk and de-lever from current high leverage levels to give

fixed income investors comfort,” the note said.

The brokerage retained its ratings on LIC, PNB and Indiabulls, while cutting Edelweiss to

„equalweight‟ from „overweight‟.

Edelweiss

Current Target Price: Rs 120; Previous Target Price: Rs 235 CMP: Rs 106.10

Morgan Stanley said Edelweiss has meaningful real estate and structured finance exposures,

which are high-yielding and have high risks. “Asset quality is highly susceptible to the state of

the real estate and equity markets,” the brokerage said, downgrading its rating on the stock to

equalweight from overweight. “With the economy slowing and real estate issues likely

increasing at the margin, risks have increased.”

LIC Housing Fin

Current Target Price: Rs 425 Previous Target Price: Rs 500 CMP: Rs 399.10

The stock is trading at 1.1 times FY20 estimated Price to Book Value (P/BV) but Morgan

Stanley has still not assigned a „buy‟ citing structural issues specific to the firm. The brokerage

said LIC Housing has been progressively losing home loan market share in recent years. The



Link https://realty.economictimes.indiatimes.com/news/industry/morgan-stanley-lowers-price-targets-on-nbfcs-with-real-estate-exposure/71062361

firm has seen an increase in both retail and developer bad loans, it said. “Investors are unlikely

to attribute high multiples unless they demonstrate recoveries from bad loans or are able to

manage down the bad loans in the developer finance book.”

Indiabulls Housing Fin


Morgan Stanley said the company‟s Return on Equity (ROE) could fall to low doubledigits

from over 25% in recent years. “In order to be able to get growth funding from the markets

(IHFL has been shrinking its balance sheet), it will have to meaningfully de-risk the loan book

and also manage down leverage which will have implications for profitability,” the brokerage

said. Such concerns will remain even if it is merged with Lakshmi Vilas Bank. “If IHFL were to

convert in to a bank, there will be additional regulatory and operating costs (to build retail

liabilities) as a bank,” it said.

PNB Housing Fin


The brokerage said the economic slowdown could impact PNB Housing, which has high

exposure to the selfemployed segment. “PNBHF‟s profitability has been lowest among large

HFCs despite running a relatively higher proportion of non-housing loans; and even within

housing loans, a higher proportion of loans to the self-employed segment,” said Morgan

Stanley. “This can come under further pressure as PNBHF scales down the share of non-

housing loans like other HFCs.”

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