02-August-2019 - CREDAI Bengal Homes
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02-August-2019
CREDAI Bengal Daily News Update | 02.08.19
Newspaper/Online The Times of India (online)
Date August 01, 2019
Link https://content.magicbricks.com/property-news/pm-asks-officials-to-remove-
hurdles-in-housing-for-all-by-2022-mission/107851.html
PM asks officials to remove hurdles in 'Housing for All by 2022' mission
In the first 'Pragati' review meeting of his second term in office, Prime Minister Narendra Modi
reiterated on July 31 his government's commitment for the "Housing for All by 2022" mission and
urged bureaucrats to remove hurdles to achieve the objective.
He also called upon states to put in maximum efforts towards water conservation, especially during
the current monsoon season, according to an official statement.
This was the first meeting of Pro-Active Governance and Timely Implementation (Pragati) in Modi's
second term in office.
Twenty-nine such meetings in the previous term of the government saw a cumulative review of 257
projects with a total investment of over Rs 12 lakh crore.
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Page 2 of 26
Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/de-shaws-arm-
allege-hdil-yes-bank-moved-funds-to-evergreen-loans/70491069
DE Shaw's arm allege HDIL & Yes Bank moved funds to evergreen
loans
“We have filed a complaint with RBI. We are not in a position to comment on the matter,” said
Sumit Saha, authorised representative of Ocean Deity.
A foreign investor in the Indian property market has alleged in a complaint to Reserve Bank of
India(RBI) that Yes Bank and realty group HDIL have moved funds to evergreen loans.
According to the offshore investor Ocean Deity Investment Holdings — an erstwhile arm of DE Shaw
and the 78% owner in an Indian joint venture (JV) where HDIL entities hold minority stake — the
loans from Yes Bank to the JV were not authorised by the majority shareholder and the money was
transferred to bank accounts of other HDIL group companies, almost simultaneously, to repay loans
taken by them from Yes Bank, sources aware of the matter told ET.
Mack Star Marketing Pvt Ltd is the JV company and owner of a well known commercial property in
Mumbai‟s Andheri East area.
“We have filed a complaint with RBI. We are not in a position to comment on the matter,” said Sumit
Saha, authorised representative of Ocean Deity.
Page 3 of 26
Fund Transfers between March ’14 and March ’16
Denying the allegations, Sarang Wadhawan, MD of HDIL, said HDIL or its subsidiaries are not aware
of any entity named Ocean Deity Investments or its dealings with Mack Star.
“We would like to state that Mack Star Marketing had purchased development rights from HDIL
through certain investments by DE Shaw Composite Investments (Mauritius) and the transaction was
limited to such sale of development rights with HDIL,” said Wadhawan.
It is learnt that DE Shaw Composite Investments (Mauritius) was renamed Ocean Deity investment
Holdings following a change in the ownership in the Mauritius entity.
Fund transfers
Ocean Deity is understood to have drawn RBI‟s attention to a series of fund transfers between March
2014 and March 2016 which showed that soon after Yes Bank disbursed a loan tranche to Mack Star,
almost the entire amount was simultaneously transferred to accounts maintained by HDIL group
companies with Yes Bank.
Sources said that Ocean Deity told RBI that while Rs 140 crore was lent and transferred through such
transactions between 2014 and 2016, there was a similar pattern of transaction, involving Rs 60 crore
in multiple instalments, in 2011 and 2012.
There were cases, the foreign investor alleged, where money moved to the loan escrow account
maintained by Privilege Power & Infrastructure Pvt Ltd (an HDIL group company) with Yes Bank,
and the current account of Sapphire Land Development (another company linked to HDIL) with the
same private lender.
Page 4 of 26Responding to ET‟s queries, Wadhawan said that “all transactions related to Mack Star Marketing
were conducted by the company itself and HDIL had no relation in any borrowings or debt raised by
Mack Star.
Mack Star‟s relationship with its lenders was conducted by its owners DE Shaw Composite,
Wadhawan added. Yes Bank did not respond to ET‟s email till the time of going to press. A bank
official said the bank would not comment on client specific issues.
Ocean Deity has pointed out to RBI that as per the Articles of Association of the JV, the company was
barred from borrowing without the approval of the majority shareholder. The offshore investor has
alleged that the primary objective was ever-greening of loans to certain HDIL entities and it was
orchestrated by Yes Bank.
A banker unconnected to the matter said that in all likelihood Yes Bank had done some paper work
and maintained records which it could only share with RBI.
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Page 5 of 26Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/vg-
siddharthas-family-blackstone-may-revive-tech-park-sale-talks/70491121
VG Siddhartha's family & Blackstone may revive Tech Park sale talks
Deal to help Coffee Day group bring down its Rs 6,547 crore debt burden and focus on putting
the group back on track.
Representatives of the family of VG Siddhartha and US buyout fund Blackstone have agreed to
resume talks for the potential sale of a 90-acre technology park owned by the Coffee Day group at an
estimated value of about Rs 3,000 crore, according to people directly aware of the development. If
successful, the deal will help alleviate the debt burden left behind by the coffee tycoon, who jumped
to death on Monday evening.
Bankers and investment advisers associated with the property have indicated willingness to revive
talks with the world‟s largest buyout fund for a potential transaction, sources said.
“There were negotiations with representatives of Siddhartha‟s family. However, at this point, we
cannot say how soon these negotiations can be converted into a transaction,” one of the persons told
ET. Blackstone declined to comment. An email query to Coffee Day Enterprises (CDE) did not elicit
a response till press time Thursday.
If a transaction happens, it will help Coffee Day Enterprises substantially reduce its debt and focus on
putting the group back on track, the sources said.
Blackstone Focused on Indian Realty
Regulatory filings show the total debt of CDE stands at Rs 6,547 crore, which includes loans from
banks and securities sold to mutual funds.
As reported by ET, Siddhartha is also estimated to have taken on debt of more than Rs 1,000 crore
through entities that housed his personal holdings.
Coffee Day group‟s subsidiary Tanglin Retail Realty is the developer of the IT-focused Global
Village Tech Park that has 4.5 million square feet of built-up area.
In a purported note, which surfaced on Tuesday, the late Siddhartha had estimated the tech park will
earn Rs 250 crore in rentals over the next 12 months. The park has the potential to add 5 million
square feet of built-up space. The Coffee Day group, through Tanglin, also owns Tech Bay, a 21-acre
riverfront property in the coastal city of Mangaluru.
Talks between Blackstone and Siddhartha had reached an advanced stage last December, with both
Page 6 of 26sides close to signing a term sheet, said people in the know. However, progress was stalled when
Siddhartha decided to prioritise the sale of his stake in Mindtree to L&T. That deal was finalised in
May.
In his final letter to the “Coffee Day family”, Siddhartha had estimated the value of Global Village at
about Rs 3,600 crore. In its annual investor presentation in March 2018, the Coffee Day group had
said the tech park had total let-out office space of more than 3.3 million sq ft. It counts multinationals
such as Accenture, Texas Instruments and NTT Data among its clients. Mindtree‟s head office is also
located within the facility.
Blackstone, the world‟s largest alternative assets manager, has been actively
acquiring commercial office space in India over the past few years. The private equity firm started
investing in Indian real estate four years after opening its local office in 2005.
It is currently the largest commercial real estate owner in India with 120 million sq ft, of which
including 20 million sq ft is under development.
The realty sector has become a focus of Blackstone‟s India investments and this will continue,
chairman Stephen A Schwarzman told ET in December. “We operate in the most transparent side of
Indian real estate … we intend to continue with our strategy,” he had said.
____________________________________________________________________
Page 7 of 26Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-seeks-
nclts-opinion-before-de-registration-of-airwil-intellicity/70490968
UP-RERA seeks NCLT's opinion before de-registration of Airwil
Intellicity
But one investor also moved NCLT seeking a refund on his investment, following which an
interim resolution professional was appointed to look into the project.
The Greater Noida bench of Uttar Pradesh Real Estate RegulatoryAuthority (UP-Rera) said on
Thursday it had asked the National Company Law Tribunal (NCLT) for its opinion before going
ahead with the de-registration process against Airwil Intellicity. The mixed-use project in Greater
Noida‟s Tech zone 4 that comprises shops, offices and residential property was issued a notice on
March 8 by the regulator after complaints from investors about delays.
But one investor also moved NCLT seeking a refund on his investment, following which an interim
resolution professional was appointed to look into the project. This is why UP-Rera needs to consult
NCLT. The rest of the buyers who approached UP-Rera are now in a fix.
“Following our warning, the builder started work on completion of the project. However, we have not
seen any significant progress on the ground. Hardly 50 people were engaged to commence work, so
we are going to de-register it. We have written to the NCLT for its opinion,” UP-Rera member
Balvinder Kumar told TOI. “And once we get a nod, the process to deregister the project will be
initiated soon as per the Rera Act, and other processes will follow.”
However, homebuyers are a disappointed lot. “The entire project was supposed to be completed 2016-
17. First we were thinking that UP-Rera would help us get refunds or flat. Now with a single buyer
having moved the NCLT, all UP-Rera proceedings have been put on hold. So we don‟t really know
where we stand now,” said Geeta Mathur, a buyer and a member of the committee instituted by Rera
for a resolution of the Airwil case.
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Page 8 of 26Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/court-rejects-
investors-pleas-for-takeover-of-dsk-groups-project-by-mhada/70491010
Court rejects investors' pleas for takeover of DSK Group's project by
MHADA
The court also observed that a bunch of writ petitions on behalf of the investors are already
pending before the Bombay high court.
A special MPID court has rejected two pleas by 27 investors seeking its directions to the state to
takeover and develop the „DSK Dream City‟ township project in Phursungi through the Pune regional
unit of the Maharashtra Housing Area Development Authority (MHADA).
“The relief sought by the investors is not sustainable in law,” special MPID judge A S Bhaisare held
in an order on Wednesday. “No direction to any government officials can be given at the request of
investors as prayed for. Consequently, both the applications are liable to be rejected,” the order
stated.
The court also observed that a bunch of writ petitions on behalf of the investors are already pending
before the Bombay high court.
The Dream City project, spread over 300 acres, is among various properties that have been attached
by the state as a part of the ongoing investigation into the alleged Rs 2,091-crore economic fraud by
jailed developer DS Kulkarni alias DSK and his group of companies (see box).
The DSK Developers Limited (DSKDL) had initially planned an SEZ project at the Phursungi land,
but later opted for developing the „Dream City‟ township. “As of now, barely 15% of the project work
stands completed ever since its construction came to a halt in October 2015,” special public
prosecutor Pravin Chavan told TOI on Thursday.
Lawyer Chandrakant Bidkar had filed the pleas on behalf of the 27 investors seeking the court‟s
directions to the accused to handover the project to the state government and to the prosecutor to
convince the government on taking over the same. The other plea sought directions to the authorities
of the Yerawada jail (where DSK and other co-accused are lodged in judicial custody) to allow DSK
and his wife, Hemanti, have a meeting with MHADA‟s Pune housing area development board CEO
Ashok Patil to facilitate development of the project and repay the dues to fixed deposit holders and
investors.
Prosecutor Chavan said, “We had filed a written submission opposing the pleas on the grounds that
they were not maintainable before the MPID court. We also stated that the MPID court had no powers
and jurisdiction to direct MHADA to implement or construct the housing project of DSKDL
Page 9 of 26company.”
Chavan said, “The Real Estate Regulatory Authority (RERA) is vested with the powers to deal with
construction matters and only the flat holders, not the investors, who have booked flats in the Dream
City project can move the RERA for any relief. In the instant case, the investors who had approached
the MPID court, had no grounds to claim relief.”
__________________________________________________________________
Page 10 of 26Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/lic-
housing-finances-ceo-vinay-sah-resigns/70490979
LIC Housing Finance's CEO Vinay Sah resigns
The company has appointed Siddhartha Mohanty as its new MD and CEO.
LIC Housing Finance's managing director (MD) and chief executive officer (CEO) Vinay Sah has
resigned, the company said in a BSE filing on Thursday.
Sah resigned due to his transfer to LIC of India with effect from August 1, 2019.
The company has appointed Siddhartha Mohanty as its new MD and CEO.
____________________________________________________________________
Page 11 of 26Newspaper/Online ET Realty (online)
Date August 02, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/kotak-realty-fund-
warns-indian-real-estate-bad-loan-crisis-to-get-messier/70480805
Kotak Realty Fund warns Indian real estate bad-loan crisis to get
messier
Kotak Realty Fund has asked lenders to recognize soured debt and take a haircut on the credit
given to apartment builders.
A realty fund controlled by billionaire banker Uday Kotak wants lenders to acknowledge that they are
facing a $65 billion bad-loan crisis in the nation‟s real estate sector.
Kotak Realty Fund has asked lenders to recognize soured debt and take a haircut on the credit given to
apartment builders. That will spur fresh credit and revive cash flow for realty companies, Chief
Executive Officer Vikas Chimakurthy said.
The $1.8. billion fund hasn‟t managed to lend to any of the stalled residential projects because lenders
balked at accepting the crisis, he said. The delay is adding to the mounting default risk of developers,
with as many as 560,000 homes worth of 4.5 trillion rupees ($65 billion) stuck or delayed across the
top seven Indian cities mainly due to the dearth of funds, according to Anarock Property Consultants.
“Lenders should realize that they have to resolve these loans before the problem gets messier,”
Chimakurthy said. “It is in a kind of gridlock situation. I think by March, things will become more
difficult, and lenders need to resolve these issues immediately.”
Developers either have to access fresh loans to complete the buildings or raise equity and infuse funds
into these stuck projects, to ensure that the stuck construction projects get in to cash flow generation
mode. Without existing lenders recognizing the stress and taking haircuts this won‟t be possible,
Chimakurthy said.
A 10-member S&P BSE Realty Index fell for the fourth-straight day in Mumbai trading on Thursday,
extending its 6% drop in July.
Page 12 of 26Financiers have been unwilling to take haircuts on stressed loans as they prefer to bring in stronger
developers into stalled projects and sell off assets kept as collateral than taking upfront haircuts,
according to a July 9 Goldman Sach note. Recognizing the loans as soured and talking haircuts will
add to the provisions and worsen capital ratios of the lenders.
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Page 13 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/xander-
acquires-1-1-million-sq-ft-pune-office-park-for-130-million/70481892
Xander acquires 1.1 million sq ft Pune office park for $130 million
The 1.1 million-sq-ft commercial office park is leased to diversified tenants like Maersk, WNS,
Whirlpool, PTC, Nihilent, Tavisca amongst others, Xander said in a release.
Xander Investment Management, the private equity real estate arm of global investment firm The
Xander Group has acquired 100% interest in Weikfield IT Citi Info Park in Pune‟s Viman Nagar for
$130 million or Rs 900 crore.
The 1.1 million-sq-ft commercialoffice park is leased to diversified tenants like Maersk, WNS,
Whirlpool, PTC, Nihilent, Tavisca amongst others, Xander said in a release.
“Through this acquisition we add a quality Pune asset with substantial growth potential, to our
ongoing India office value-add strategy,” said Arpit Singh, Principal at XIM, Singapore.
According to him, Xander Investment Management continues to expand its office footprint, through
operating asset acquisitions and new development projects, leveraging its extensive on-ground
operating expertise, tenant relationships and scale.
The asset complements Xander‟s existing, 100% owned and operated portfolio across key Indian
cities, and enables it to offer a strategic Pune location to tenants, the release said.
Weikfield is close to the Pune International airport, and has connectivity to prime residential,
commercial and retail catchments of Pune. The office park has two five-star hotels adjacent to it.
The Singapore-headquartered Xander Investment Management firm has been actively investing in
India for over fourteen years, and has acquired and developed over 83 million sq ft across all real
estate asset classes, including office, retail, industrial, budget and luxury hotels, warehousing, and
residential condominiums and townships.
The Xander Group Inc. has committed over $3 billion to the Indian market across private, public,
credit and venture investments since 2005.
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Page 14 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/surge-in-lodhas-
bond-yield-hints-at-stress-in-the-group/70479191
Surge in Lodha’s bond yield hints at stress in the group
The dollar-denominated bonds issued by the developer are quoted at 72 per cent yield to
maturity (YTM), show Bloomberg data.
ET Intelligence Group: A sharp spike in the yield on the overseas bonds issued by the Lodha
Group amid below investment grade ratings accorded by rating agencies could reflect a major stress in
the operations of the realty developer.
The dollar-denominated bonds issued by the developer are quoted at 72 per cent yield to maturity
(YTM), show Bloomberg data.
According to industry experts, this may be factoring in a higher potential default risk. “If a bond is
quoting at 72 per cent yield, it is a clear case that it is in the process of becoming a junk or default
bond,” said Sunil Jhaveri, chairman, MSJ Capital and Corporate Services. He added that investors
with expertise in distressed sales would be interested in such instruments.
“The investors may be anticipating certain risks, but there could also be other constraints such as
reduced exposure to these kind of bonds within the investor community,” said Sanjay Agarwal, senior
director, CARE ratings. Lower liquidity resulting from this may have added to the sharp fall in the
bond prices.
“Lodha group don‟t wish to comment on this,” said the company in response to ET‟s email query.
YTM is the return an investor can generate in one year if he buys the bond. “The current level of the
yield on Lodha bonds suggests that the company is in crisis,” said a debt fund manager requesting
anonymity.
Lodha‟s consolidated net debt at the end of 2017 was nearly Rs 14,000 crore according to the DRHP
filed by the company. The operating profit before depreciation and amortisation (EBIDTA) for the
year was Rs 1,306 crore and interest paid was Rs 125 crore. The company had planned to publicly list
its shares through initial public offering (IPO) in 2018, which was later on deferred.
The dollar bonds were issued by the company‟s subsidiary Lodha Developers International in two
tranches with maturity in 2020. In the first tranche, the company raised $200 million at 12 per cent
coupon rate in FY16 and the second tranche of $125 million was raised at 8.9 per cent coupon in
December 2017. These bonds are listed on the Singapore Stock Exchange (SGX). The developer has
raised a total of $325 million (nearly Rs 2,300 crore at the current USD/ INR rate) through these
bonds.
Page 15 of 26Major rating agencies have rated these bonds below the investment grade. Moody‟s and Fitch have
rated the bonds as B2 and B, respectively.
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Page 16 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/smartworks-
leases-270000-sq-ft-space-in-noida-for-nine-years/70479759
Smartworks leases 2,70,000 sq ft space in Noida for nine years
The Delhi-based co-working spaces operator has signed eight new lease agreements totalling
around 600,000 sq ft across Bengaluru, Chennai, Pune and Noida since the beginning of this
year.
Flexible office spacesprovider Smartworks has picked up more than 270,000 square feet (sq ft)
in Noida through a longterm lease spread over nine years. This is its largest facility with a seating
capacity of 5,500 and is adjacent to the Delhi-Noida Expressway.
The Delhi-based co-working spacesoperator has signed eight new lease agreements totalling around
600,000 sq ft across Bengaluru, Chennai, Pune and Noida since the beginning of this year.
Smartworks‟ total footprint has touched around 2.8 million sq ft, with a total investment of $25
million so far. “We are very bullish on scaling our business in the existing cities. Around 60% of these
facilities are operational and the remaining will go live in a month‟s time as we have already signed
up clients for each one of them,” said cofounder Harsh Binani.
Smartworks has been growing in southern and western India since early 2019 and is expected to
expand its workplace portfolio to 10 million sq ft by 2022. “Smartworks has clocked over ?100 crore
in revenue and has been profitable for an entire year at the corporate level,” Binani said. Currently, it
has 35,000 seats spread across 23 centres in nine cities, including the national capital region (NCR),
Mumbai, Bengaluru, Hyderabad, Pune, Chennai and Kolkata.
Page 17 of 26“Smartworks is into a large-format play and the average space take-up by each of our clients is about
280 seats, spread across about 10,000 sq ft,” said Binani. The office spaces market grew 21% yearon-
year in the first half of this year, according to industry tracker JLL. “Net absorption of office space
across top seven cities touched nearly 22 million sq ft,” it said. The growth in demand was driven by
co-working players (15% of overall leasing) and IT/ITeS space (37% of overall leasing), JLL added.
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Page 18 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/lok-sabha-
passes-bill-for-eviction-of-illegal-occupants-from-government-
accommodation/70474711
Lok Sabha passes bill for eviction of illegal occupants from government
accommodation
Of the total 15,416 residential accommodation under the government quota, "currently 3081
cases were under litigation," which was a matter of concern, he told the House.
Lok Sabha on Wednesday passed a bill which seeks to crackdown on unauthorised occupants of
government residential accommodations.
Responding to the debate on the Public Premises (Eviction of Unauthorised Occupants) Amendment
Bill, 2019, minister of housing and urban affairs Hardeep Singh Puri said it was good time to push
through the legislation as many MPs were waiting for their new accommodation.
Of the total 15,416 residential accommodation under the government quota, "currently 3081 cases
were under litigation," which was a matter of concern, he told the House.
The proposed amendments would enable the estate officer to apply summary proceedings for evicting
unauthorised occupants from residential accommodations and to levy damage charges for
accommodation held during the period of litigation.
The bill was passed by the Lower House by a voice vote.
____________________________________________________________________
Page 19 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/goa-may-give-
incentives-for-roof-top-rainwater-harvesting/70478356
Goa may give incentives for roof-top rainwater harvesting
Speaking to reporters, he said the government was considering the incentives as it is concerned
about conservation of water.
The Goa government is considering providing incentives to the residents who have installed rainwater
harvesting system on roof-tops, Water Resources Minister Filipe Nery Rodrigues said on Wednesday.
Speaking to reporters, he said the government was considering the incentives as it is concerned about
conservation of water.
"I will discuss this issue with Chief Minister Pramod Sawant. The Town and Country Planning
Act need to be amended to encourage the roof-top rainwater harvesting," he said.
Responding to a query, the minister said the government was also planning to construct more small
check dams across the rivers in the state to increase water table.
__________________________________________________________________________________
Page 20 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/realtors-worried-
as-andhra-pradesh-increases-land-value-registration-by-10/70480865
Realtors worried as Andhra Pradesh increases land value registration
by 10%
The city realtors are a worried lot as the state government has increased the registration value
of the land.
The city realtors are a worried lot as the state government has increased the registration value of the
land.
As the government is facing a financial crunch, policymakers are exploring all possible ways to fill
the coffers. As part of the plan to increase revenue, the state government has increased land values by
up to 10% depending on the area from Thursday. Increasing land value is not a new thing as
the TDP regime had done two times over a period of five years. Now, the YSRC government has
increased the registration value of land across the state.
With an increase in land value, the registration costs too shoot up, putting an extra burden on buyers.
The effect will be more in urban areas and moderate in semi-urban areas. Realtors are worried that
this move will further pull down the sector which is already seeing a decline in the capital region for
the last three years and severely beaten down in the last three months.
Core urban areas will witness the highest increase in value as demand for land in urban areas is
always high in Vijayawada. Semi-urban areas, which are the market movers in terms of volumes, also
have a significant impact, according to industry experts. The Confederation of Real Estate Developers
Association of India (CREDAI) Vijayawada chapter president, Y V Ramana Rao said though there
will not be much burden on buyers as the market is in negative, this will further dampen the investor
sentiment, he said.
The National Real Estate Development Council (NAREDCO) Andhra Pradesh chapter general
secretary Gadde Tirupathi Rao said the government decision comes as big blow to the real estate
sector in the capital region.
As government has increased land value multiple times, the difference between market value and
registration value has come down drastically. In some of the areas in the capital region, there are no
buyers even at book value and with an increase in land value again, the volumes will decline further,
he said. "Forget about the interests of industry, this move is not in the interest of people," he said.
Page 21 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/north-delhi-
civic-body-plans-to-allow-unauthorised-extensions-of-buildings/70486191
North Delhi civic body plans to allow unauthorised extensions of
buildings
North Delhi Municipal Corporation plans to give these defaulters a chance to get these
structures, built till December 31, 2018, regularised by submitting a penalty under an amnesty
scheme.
The unauthorised extensions or changes made in buildings in the authorised colonies, urban villages
and special areas may soon get a legal tag. North Delhi Municipal Corporation plans to give these
defaulters a chance to get these structures, built till December 31, 2018, regularised by submitting a
penalty under an amnesty scheme.
The proposal, approved in a standing committee meeting on Wednesday, will be sent to the Union
housing and urban affairs ministry for approval and required amendments to Master Plan Delhi 2021.
The move will help increase the corporation's revenue, said a committee member. "It will also allow
people to enjoy an increased floor area ratio (FAR) of 400," said Tilak Raj Kataria, leader of the
House. FAR is the ratio of a building's total floor area to the size of the plot.
The proposal is crucial as after the last amendment in the master plan, the commercial units in local
shopping complexes are allowed a FAR of 350, Kataria said. "This is leading to confusion among
residents."
For buildings occupying up to 250sq m, the proposed FAR is 400 and for ground floors, the coverage
area will 100% instead of the current 90%. Projections, chhajas and covered built-up portions up to 1
metre and above 3 metre from the ground are also likely to be regularised.
Blaming the corporation for legalising such violations every year, Congress leader Mukesh Goel said,
"Though I am not against the proposal, a time limit should be fixed for allowing such illegal
extensions. A similar proposal was approved last year."
Standing committee chairman Jai Parkash, however, said the proposal would minimise chances of
corruption. "Most residents have made certain changes and always live under the threat of facing
demolition or sealing." The same problem exists in special areas such as Chandni Chowk and Sadar
Bazar, he added. "We will insist that people obtain completion certificates so that no change can be
made in future."
________________________________________________________________
Page 22 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/dehradun-
residents-to-get-sms-alerts-for-house-tax-payment-soon/70478276
Dehradun residents to get SMS alerts for house tax payment soon
The tax payers of Dehradun will soon get SMS alerts to pay their house tax online. The
Dehradun Municipal Corporation (DMC) started the system in a tie-up with a telecom firm.
The tax payers of Dehradun will soon get SMS alerts to pay their house tax online. The Dehradun
Municipal Corporation(DMC) started the system in a tie-up with a telecom firm.
According to a DMC officer, the process will start within 10 days and will benefit around 82 thousand
families, many of whom have to make rounds of the DMC office just know their dues.
The DMC already has an operational online house tax payment system in place. Residents of 56 out of
60 wards benefit from it.
Talking to TOI, Dehradun municipal commissioner Vinay Shankar Pandey said, "The system will
generate three different SMSs. The first one will be a prompt to pay their taxes, the second informing
them of their dues and the third a payment confirmation."
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Page 23 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/lg-reviews-
implementation-of-ddas-land-pooling-initiative/70474660
LG reviews implementation of DDA's land pooling initiative
Baijal advised DDA for wider publicity and more engagement with stakeholders to expedite its
implementation on ground.
Lieutenant Governor Anil Baijal reviewed the implementation of land pooling policy with Delhi
Development Authority officers on Wednesday and said over 2,600 hectare land has already been
registered for the scheme.
Baijal advised DDA for wider publicity and more engagement with stakeholders to expedite its
implementation on ground.
Under the policy, agencies will develop infrastructure such as roads, schools, hospitals, community
centres, stadia on part of the pooled land and return a portion of the plot to the farmer who can later on
execute housing projects with the help of private builders.
As per estimate, 25 lakh affordable housing units could come up under the policy.
"Reviewed implementation of land pooling policy with @official_dda. Encouraging to see that more
than 2600 hectare land has already been registered for pooling. Advised DDA for wider publicity &
more engagement with stakeholders to expedite implementation on ground," Baijal tweeted.
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Page 24 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/hdfc-
lowers-lending-rates-by-10-basis-points-to-new-existing-loans/70479301
HDFC lowers lending rates by 10 basis points to new & existing loans
For loans above Rs 30 lakh and up to Rs 75 lakh, the new rates will 8.85 percent and 8.80
percent for women borrowers and for those above Rs 75 lakh, the prices will come down to 8.90
and 8.85 percent respectively, it said.
Mortgage major HDFC Wednesday announced reduction in retail loan pricing by 10 basis points
across tenors and buckets of loans, both for new as well as existing borrowers, effective Thursday.
For home loans up to Rs 30 lakh, the financier is offering 8.60 percent now. For women borrowers,
the new rate is 8.55 percent, the largest mortgage lender said in a statement, adding the rate reduction
will be applicable to existing borrowers as well.
For loans above Rs 30 lakh and up to Rs 75 lakh, the new rates will 8.85 percent and 8.80 percent for
women borrowers and for those above Rs 75 lakh, the prices will come down to 8.90 and 8.85 percent
respectively, it said.
Earlier this month, State Bank had reduced its lending rate by 5 basis points across all tenors. It had
also lowered its one year rates to 8.40 percent from 8.45.
The rate reductions come after the RBI lowered the policy rate by a cumulative 75 basis points to 5.75
percent in three successive steps since February and prodding banks to pass on the benefits to end-
customers, as they have lowered only 21 bps as of June.
Since June, many banks such as Bank of Maharashtra, Corporation Bank, Oriental Bank of
Commerce and IDBI Bank have also reduced their loan pricing.
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Page 25 of 26Newspaper/Online ET Realty (online)
Date August 01, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/workers-
union-demands-maharashtra-government-to-make-registration-process-
simpler/70482738
Workers' union demands Maharashtra government to make
registration process simpler
After the Kondwa wall collapse, the district administration has been circulating registration
forms at various construction sites.
The workers' union in the district has demanded that the state government simplify the process of
registration for construction workers and not seek unnecessary details from them.
After the Kondwa wall collapse, the district administration has been circulating registration forms at
various construction sites. The form seeks, apart from other information, details of the registration
number of developer - one of the reasons for the delay in the registration process - said a workers'
union representative.
The union has demanded that the government simplify the entire process, rather than make it
cumbersome. Activist Ajit Abhyankar pointed out that while the Building And Other Construction
Workers Act does not have any rules for providing registration number of builder the construction
worker is working for, the new form issued by the administration has made it difficult for the workers
to register themselves.
The Supreme Court recently issued guidelines for registration of workers. Most labourers who died in
wall collapse incidents in Pune were from Bihar and finding the injured and the kin of victims and
giving benefits to them was tough for the administration.
The welfare board directed the municipal corporations to ensure that builders and contractors enroll
the labourers with the board to enable them to avail government benefits.
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