ExpressJUNE 25, 2019

Issue No. 201911

ERPBuilder’s Hardware,Locks & Fittings

Wires & CablesSkilling Partner Elevated Parking

Construction Finance

National Preferred Partners

From thePresident’s Desk

Dear Friends,

The data on growth of the Indian economy shows deceleration. This is a challenge for nation’s ambitions especially with regards to jobs for our young labor force. It is imperative to push up the rate of investment to create jobs and accelerate growth. The rate cut by RBI 25 basis point is certainly a step in the right direction. However, it may not be enough by itself. We need higher rate of capital formation all across the economy. Real Estate sector especially Housing has the potential to add to the gross domestic capital formation by 3-4 percentage points. I do hope that the Union Finance Minister while presenting her maiden budget would overwhelm us with positive measures for the sector.

The key issues facing the sector arise from sluggishness in o�take, especially housing. Our economy which expects to see its urban population raising by about 10 percentage over the next decade, there is no reason for tolerating such sluggishness. Therefore, it would be timely and appropriate to incentivize home purchasers through income tax

incentives. One way to do so may be to allow for a separate or standalone exemption under Section 80 C for up to Rs. 5 lakh per annum for five years. Home loan interest up to Rs.4,00,000/- can be exempted from Income Tax under Sec 24 B.

There has been an extreme credit squeeze following the debacle of some NBFCs. Credit to the housing sector needs to be doubled or tripled from the current level of about Rs. 1 Lakh more per annum. On the other hand, what we see is that the rate of growth of credit for housing is just, half of what it was three or four years ago. The answer lies in making the grant of infrastructure status to housing more meaningfully by allowing funding of land by banks and Financial institutions for a�ordable housing projects.

Mr. Satish Magar

Union Budget 2019-20 SuggestionsSuggestions are invited from members for inclusion in CREDAI recommendations to the Government for Union Budget 2019-20.Please submit your suggestions at info@credai.org

CREDAI Welcomes

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Express

CREDAI’s Expectations from the Upcoming Union Budget 2019

May 23, 2019 will always be remembered as a decisive day for many reasons. Not only did the entire nation witness a landslide win for the Modi-led Government in the 17th Lok Sabha Elections, it also paved the way for a critical period for the Indian economy, with Indian Realty right at the heart of this crucial juncture.

Overall, the result of the elections augurs well for the growth of the Indian real estate sector. The Modi Government in its first term is credited for bringing some landmark steps to re-vitalize the Indian Real Estate sector such as the implementation of RERA, GST, led by the PM’s overarching objective of ‘Housing for all by 2022’.

With the party now returning to power, there is a strong sentiment that, the ensuing political stability will be instrumental in strengthening the government’s housing initiatives while undertaking broader reforms for the overall growth of the Indian economy.

However, while the industry is firmly on its revival course, the government is expected to continue to lend its support to its many housing centric measures, starting with the Union Budget announcement on July 5, with the real estate industry currently at a stage where it needs vital assistance from the central authorities;

1. Tackling the Liquidity Crisis – The last quarter of 2018 witnessed the NBFC crisis, which proved to be a huge setback for many developers, mostly e�ecting small to medium sized companies, who are largely dependent on the segment for financing their projects. Post implementation of critical reforms, the NBFC crisis has been a huge stumbling block for the industry’s progress and needs critical intervention. At a time when every activity has become time bound under the RERA protocols, the Government needs to ensure a conducive environment for the real estate developers to operate in.

2. Enhancing Ease of Doing Business – There has been a remarkable improvement in this regard, clearly reflected in the World Bank’s ease of doing business report, wherein

India’s ranking in the ‘Construction Permit’ category improved by an astounding 129 positions in a single year. While the Government has consciously taken some concrete measures, there is still a long way to go. The implementation of the Single Window clearance mechanism, in this respect, would definitely be a game changer for Indian realty, and would not only prove to reduce the turnaround time for delivering projects but also the construction cost and subsequently the property prices for homebuyers

3. Enabling funding for land acquisition – There has been a positive intent by the Government however; it needs to translate into tangible policy interventions to ensure sustained support for real estate developers.

4. Addressing the unsold inventory conundrum – The Indian Real Estate Industry is currently riddled with a huge pile of unsold inventory and delayed projects that has slowed the growth of the industry. This requires systematic interventions from the Government and other bodies to lead sustained industry growth and progress.

5. Stamp Duty subsumed into GST – Another major issue that’s been at the fore has been the stamp duty charges (which typically vary from state to state) that are charged separately from the GST Rate. We expect the new government to rationalize the taxes by merging stamp duty under GST to negate the cascading e�ects of such charges that are borne by stakeholders. This move is bound to give a boost to the industry by easing out the cost of development.

For the next few years, we expect continued momentum for Indian realty and project the next wave of economic growth to be spearheaded by the Indian real estate sector. Our Prime Minister’s mission of ‘Housing for all by 2022’ will enter its decisive period during his second term, which is bound to be an extremely exciting time for all industry stakeholders amidst the dawn of a New India. We now hope that the Union Finance Minister while presenting the maiden budget would overwhelm us with positive measures for the holistic growth of the Indian real estate sector.

DISCLAIMER: The views expressed are solely of the author and ETRealty.com does not necessarily subscribe to it. ETRealty.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

Express

CREDAI Delegation Congratulates Shri. Hardeep Singh Puri,Hon’ble Minister for Housing and Urban A�airs

CREDAI Delegation met with Shri. Prakash Javadekar,Hon’ble Minister of Environment

Meetings & Updates

CREDAI’s delegation led by Shri. Satish Magar, President CREDAI met Shri. Hardeep Singh Puri and congratulated him for the second term - attributing to the contributions done by him for the development of New India and keeping the Indian real estate sectors’ growth at the center on June 14.

CREDAI delegation in a meeting held on June 18, with Shri. Prakash Javdekar, Minister of Environment had a inclusive discussion on issues pertaining to the Indian real estate sectors’ growth along with the need for a sustainable environment at length.

Express

CREDAI Compliments RBI for Lower REPO Rate Cut

CREDAI’s Upcoming Events

Tentative Dates Event Planned

August 5-7, 2019 NATCON 2019 & ECGC, Tel Aviv

November 25, 2019 Conclave, Kushalta Divas, ECGC and OB, Delhi

Conclave, Kushalta Divas, ECG and OB, Delhi

February 20, 2020 New India Summit, ECGC and OB, Raipur

May 2020 OB, Chennai

OB, Chennai

August 2020 NATCON, ECGC and OB, International Location

September 2020

November 25, 2020

February 2021 OB, Chandigarh

March 2021 ECGC and OB, Kolkata

Express

https://www.dnaindia.com/analysis/column-modi-20-would-propel-a�ordable-housing-in-india-2757571

https://www.financialexpress.com/money/senior-living-student-housing-to-boost-real-estate-in-2019/1577819/

https://www.moneycontrol.com/news/business/real-estate/housing-sales-up-13-in-jan-mar-on-stable-prices-cbre-4065751.html

https://www.moneycontrol.com/news/business/residential-real-estate-in-india-is-set-to-make-a-comeback-4111321.html

CREDAI NATCON 2019, Aug 5-7, 2019, Tel Aviv, Israel

Industry News

STAY TUNED AND FOLLOW CREDAI FOR THE LATEST UPDATES! @credainational @CREDAINational@credai_national

CREDAI NATCON 2019“Lead Partner”

CREDAI NATCON 2019“Lanyard Sponsor”

Express

CREDAI New Chandigarh in Association With IGBC, Institute of Town Planners India & ECO Sikh celebrated World Environment Day at PCL Gateway Housing Site, New Chandigarh. The Concept of Green CheckPost- adopt a tree and 100 Eco Forest were launched at the event.

The Event was attended by IGBC core committee members, 100 school children & teachers. Shri. S. Guramanpreet Singh, Divisional Forest O�cer, SAS Nagar was also present.

CREDAI GIHED organized a first -of- its- kind Public Partnership Program to drive Sabarmati River Cleanliness on World Environment Day in Ahmedabad. Our Chairman, Shri. Jaxay Shah actively supported and participated in the program.

On-site Skill training started at Skyline Ranch, Kerala on June 18.

CREDAI at a Glance

CREDAI Howrah Hooghly organized a workshop and interactive session on WB RERA, Clean and Green Hoogly with Hon’ble Commissioner of Chandannagar Municipal Corporation, Shri. Swapan Kundu and Engineers of Building Department of Chandannagar Municipal Corporation on June 21

CREDAI Kochi organized a training program on 'Management Concepts For Execution Excellence- Construction Projects' on June 19

Express

CREDAI Coimbatore 13th Annual General Meeting was held on June 20. The Meeting was attended by distinguished guests including Hon’ble Justice, Shri. B Rajendran; Chairperson TN RERA Applette Tribunal, Shri. K Rajamani; IAS District Collector and District Magistrate of Coimbatore and CREDAI Tamil Nadu Chairman, Shri. Sridharan. The CSR activities were showcased.

ExpressGovernment Representations &

Meetings Update, June 1-22, 2019

17.6.20193.

S.No. Dated Members Subject

Shri Pradeep Singh KharolaSecretary, Ministry of Civil AviationGOI, New Delhi

14.6.20194. Dr. Shrikar PardeshiJoint Secretary, Prime Minister’s O�ce, New Delhi

14.6.20195. Shri Heeralal SamariyaSecretary, Ministry of Labour and Employment, Government of India, New Delhi

Clarification/amendments to be issued in the G.S.R. 751 (E) Notification dated 30th Sept. 2015 issued

by the Ministry of Civil Aviation, Govt. of India

18.6.20192.Shri. Prakash JavadekarMinister- Environment, forests and Climate ChangeCREDAI DelegationMr. Jaxay ShahMr. Harsh Vardhan Patodia- Mr. Rajesh LundMr. Pankaj GoelMr. Atul K. RaiMr. Reginald J. Sinclair

Environment policy measures to accelerate housing

22.6.20191.Shri Pradeep Singh Kharola,Secretary, Civil AviationCREDAI delegation 1. Satish Magar 2. IP Inamdar 3. Pankaj Goel

Meeting related to G.S.R. 751 (E) Notification dt/- 30th Sept 2015 related to Notified Defence

Aerodromes

Involving CREDAI in the implementation of BOCW Act

Involving CREDAI in the implementation of BOCW Act

14.6.20196. Dr. K. P. KrishnanSecretary, Ministry of Skill Development and Entrepreneurship, Government of India, New Delhi

Involving CREDAI in the implementation of BOCW Act

13.6.20198. Shri Nitinbhai PatelHon’ble Deputy Chief MinisterGovernment of Gujarat, Gandhinagar, Gujarat

Union Budget 2019-20 Recommendations

13.6.20199. Shri Nitinbhai PatelHon’ble Deputy Chief MinisterGovernment of Gujarat, Gandhinagar, Gujarat

Recommendations on GST w.r.t. Real estate

13.6.201910. Dr. P. D. VaghelaCommissioner of Commercial TaxFinance Department, Government of Gujarat, Gandhinagar, Gujarat

Union Budget 2019-20 Recommendations

13.6.201911. Dr. P. D. VaghelaCommissioner of Commercial Tax Finance Department, Government of Gujarat, Gandhinagar, Gujarat

Recommendations on GST w.r.t. Real estate

10.6.201912. Ministry of Finance, Government of India:1. Shri Ajay Bhushan Pandey, Revenue Secretary2. Shri P C Mody-CBDT Chairperson3. Shri Akhilesh Ranjan-CBDT Member4. Dr. John Joseph-CBIC Member5. Shri R K Bhoot- Joint Secretary6. Shri Manish Sinha- Joint Secretary7. Shri P K Dass- CBIC Chairperson

CREDAI delegation:1. Satish Magar 2. Pankaj Goel3. Vishal Gupta 4. Atul K. Rai5. R. J. Sinclair

Union Budget 2019-20 recommendations, GST and Pre budget

14.6.20197. Shri Hardeep Singh PuriHon’ble Minister for Housing and Urban A�airs, Government of India, New Delhi:1. Satish Magar 2. Arvind Jain3. R C Gupta4. Manish Agarwal5. Nimish Arora 6. Atul K. Rai7. R. J. Sinclair

Union Budget 2019-20 recommendations and Pre budget

CREDAI - Quick Fixes Needed for Real Estate

Clarification/amendments to be issued in the G.S.R. 751 (E) Notification dated 30th Sept. 2015 issued

by the Ministry of Civil Aviation, Govt. of India

For feedback/suggestions/queries/PR/Events information, please conenct with Ms. Meenakshi Chopra, PR & Marketing - Manager

E: meenakshi@credai.org | M: 011 42136200

Follow us on www.credai.org

or

Express

Draft Urban A�ordable Housing &Habitat Policy – Andhra Pradesh

HousingPolicies

State housingpolicies

19/6/2019

Title Section Sub-Section Link Date

https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/3ddc5497-c6c5-4fb0-84bc-e669fee6c74a/DraftUrbanHousingPolicyA.P.pdf

Prudential Framework for Resolutionof Stressed Assets

Bank and HomeLoan Circulations

Banking Circular 22/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/a153e1cc-805c-4eb4-bae2-08070073233f/StressedAssets.pdf

A�ordable Colony Policy - Punjab HousingPolicies

State housingpolicies

Other ResearchOrganization

Reports

GST – CONCEPT &STATUS

19/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/3ddc5497-c6c5-4fb0-84bc-e669fee6c74a/A�ordable-Colony-2018Punjab.pdf

Housing Policy - Chhattisgarh HousingPolicies

State housingpolicies

19/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/3ddc5497-c6c5-4fb0-84bc-e669fee6c74a/CGHB_AwasNiti_eBookChattisgarth.pdf

CBRE Research - Resilience &Property Management

Reports &Journals

DevelopmentControl Act

14/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/de3ee263-78b5-477a-bb1d-1f324a1412ba/untitled.pdf

Transition plan to the new GST Return GST 13/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/da739c1b-c682-4978-94f4-a8598f18a053/TransitionplantothenewGSTReturn.pdf

Imphal Municipal Council BuildingBye-laws (First Amendment), 2019

Laws andRegulations

PMAYA�ordableHousing

10/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/27948cb4-6d4f-11e7-9035-0200cd936607/ImphalMunicipalCouncilBuildingBye-laws.pdf

Approval of Continuation of PMAY-GBeyond March 2019 (PMAY-G Phase-II)

7/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/9578e183-8a44-40e9-8f36-cde0c048a84d/scan0722.pdf

Bhubaneswar Development Authority(Planning and Building Standards)

Regulations, 2018

Laws andRegulations

Town & CountryPlanning Act

DevelopmentControl Act

7/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/27948cb4-6d4f-11e7-9035-0200cd936607/OdisaGazette.pdf

Agenda of Rural Housing Division A�ordableHousing

PMAY 6/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/9578e183-8a44-40e9-8f36-cde0c048a84d/AgendaOfRuralHousingDivision.pdf

Unified Building Bye Laws (UBBL)for Jaipur 2017

Laws andRegulations

4/6/2019https://knimbus.s3.amazonaws.com/org_ab15180f-4cce-4e43-bbb5-f3e159ba0f98/27948cb4-6d4f-11e7-9035-0200cd936607/unifiedbuildingbyelaws2017Jaipur.pdf

E-Library Documents UploadDetails, June 1-19, 2019