24-July-2019 - Credai Bengal
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24-July-2019
CREDAI Bengal Daily News Update | 24.07.19
Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/sc-cancels-
registration-of-all-amrapali-group-companies-under-rera/70341493
Amrapali conducted serious fraud: Supreme Court
SC has directed NBCC to oversee completion of projects in Noida and Greater Noida. Home
buyers have been ordered to deposit remaining money in an escrow account.
The Supreme Court of India on Tuesday said that serious fraud has been played by Amrapali Group in
connivance with Noida and Greater Noida authorities by failing to give possession of flats to over
42,000 home buyers.
The bench of judges Arun Misra and UU Lalit had previously reserved their order on the matter.
In May 2019, Noida and Greater Noida authorities have told the SC that they don't have the requisite
resources and expertise to construct the stalled projects of Amrapali. Senior advocate Debal Kumar
Banerji, appearing for Noida authority, had accepted that any action could not be taken against the
group due to bulk of home buyers and political weight.
"The money paid by home buyers included the duties to be paid to authorities. And since authority did
not ensure compliance with conditions of lease, they cannot have any charge over the project," the
bench said.
Amrapali owes around Rs 5,000 crore towards the principal amount and interest component besides
the penal interest to both the authorities. The SC said that the dues of banks and authorities will be
realised by selling of attached property of Amrapali Group other than the projects.
Meanwhile, the authorities have been ordered to execute tripartite agreement and issue completion
certificate to the projects.
The apex court has cancelled registration of all projects of Amrapali Group companies under Real
Estate Regulatory Authority (RERA).
Reacting to the judgement, advocate Ashwarya Sinha representing over 2,000 homebuyers, said that,
"This is a landmark judgement. Builders have taken benefit of innocent homebuyers for long but this
judgement will bring in fear of law to such unscrupulous realtors. This also shows that authorities
must also be held responsible for the lapses on their part. This order also protects that statutory dues
are not burdened on the buyer. We are hopeful that NBCC will complete the remaining projects on
time and buyers will finally be able to live in their dream homes."
The apex court further directed NBCC to oversee completion of company‟s projects in Noida
and Greater Noida. The apex court fixed the commission of NBCC at 8 per cent. The company had
previously proposed the project management cost at 10% of “actual cost of work” which was about Rs
Page 2 of 28
774.17 crore.
Where will the money come from?
The bench today said that the money will be deposited by all personnel who have benefited from
siphoning off the home buyers' money. Home buyers have been ordered to deposit remaining money
in an escrow account.
The apex court also observed that there was no need to secure loan against the project since buyers
had paid the money in full.
In September 2018, NBCC had submitted its report saying that about Rs 8,500 crore were needed to
complete 46,575 residential units in Category A, B and C projects of the company. Interestingly,
according to an affidavit previously filed by Amrapali, it had informed that about Rs 5,220 crore are
needed to complete all these projects.
In May 2019, forensic auditors Pawan Agrawal and Ravi Bhatia had informed the SC that Amrapali
has diverted Rs 3,523 crore of home buyers‟ money. The auditors further said that Rs 9,590 crore can
be recovered from Amrapali and its promoters.
About 5,229 unsold flats of Amrapali in 11 different projects can be sold for Rs 1,958.82 crore, the
auditors had said.
They had also said that Rs 3,487 crore is recoverable from home buyers who have booked flats and
taken the possession in 14 Amrapali projects.
Meanwhile, the concerned ministry and department have been directed by SC to ensure completion of
projects while senior advocate R. Venkatramani has been appointed as the court commissioner.
The apex court also held that JP Morgan has violated Foreign Exchange Management Act
(FEMA) regulations. In January 2019, the forensic auditors pointed out that there are some
discrepancies in the Rs 100 crore investment made by JP Morgan in Amrapali Zodiac which they
would like to further investigate. SC had asked the company to clarify how it sold the real estate firm's
shares to two little known companies 'Neelkant' and 'Rudraksh' for Rs 140 crore.
Earlier this month, the Enforcement Directorate‟s (ED) zonal office in Lucknow had filed a criminal
case under the Prevention of Money Laundering Act (PMLA) against Amrapali and its promoters. The
case has been filed after taking cognisance of at least 16 FIRs registered against the group by the
Noida Police.
The case will next be heard on August 9, 2019.
Turn of events
In May 2019, Senior advocate Gaurav Bhatia, appearing for Amrapali, said an amount of Rs 11,652
crore were collected from the home buyers and that Rs 10,630 crore was used for construction of
various projects besides paying Rs 998 crore to the authorities as lease amount.
Page 3 of 28
During the hearing, forensic auditor Pawan Agrawal had pointed out that funds over Rs 400 crore
were diverted by Amrapali through three companies Bihariji Highrised, Jotindra Steel & Tubes and
Mauria Udyog.
In March 2019, the forensic report ordered by SC had found that funds were transferred to more than
100 shell companies outside Amrapali through dubious transactions.
On February 28, the apex court had allowed the Delhi police to arrest Amrapali group CMD Anil
Sharma and two directors on a complaint that home-buyers of their various housing projects were
cheated and duped of their funds.
In October 2018, forensic auditors informed the SC that a transaction of over Rs 100 crore had been
diverted by Amrapali to a firm known as GauriSuta Infrastructures.
In September 2018, the statutory auditors have been ordered by SC to handover financial documents
from 2008-2015 of Amrapali to forensic auditors appointed by the court in September while the
company has been asked to provide details of 2015-2018 to the forensic auditors.
During the same month, SC had ordered selling of 16 unencumbered properties of Amrapali and
attached personal properties of company‟s directors. In a previous affidavit, Amrapali informed the
court that they have 21 unencumbered properties worth Rs 2,535.56 crore while Anil Kumar Sharma,
chairman and MD of the company, gave details of his immovable assets worth Rs 32.73 crore.
In October 2017, over 100 homebuyers had moved SC against the insolvency proceedings order
passed BY NCLT on the plea of Bank of Baroda.
In September 2017, NCLT had ordered liquidation of Amrapali on the plea of Bank of Baroda seeking
initiation of the same under the Bankruptcy Act.
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Page 4 of 28
Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/emaar-india-ceo-
prashant-gupta-resigns/70345474
Emaar India CEO Prashant Gupta resigns
Prashant Gupta joined Emaar India as CEO in June last year.
Dubai-based Emaar Properties' India CEO Prashant Guptahas resigned from the company citing
personal reasons, and a new CEO has been appointed, sources said.
Prashant Gupta joined Emaar India as CEO in June last year.
According to sources, Gupta resigned as he decided to move back to Bengaluru for personal reasons.
A new chief executive officer (CEO) has been appointed, who will take charge from August 6,
sources said.
The name of the new CEO is yet to be announced.
Before joining Emaar India, Gupta was working with Aditya Birla group since 2011. He held various
positions in Aditya Birla group, including that of President and CEO of online retail business
ABOF.com.
In 2005, Emaar Properties entered Indian real estate market in partnership with India's MGF group
and invested Rs 8,500 crore through joint venture Emaar MGF Land.
However, in April 2016, it decided to end this JV and two months later Shravan Gupta, the then
executive vice chairman and managing director of the JV, resigned from the post.
In January 2018, the National Company Law Tribunal (NCLT) approved the proposed demerger
scheme of Emaar MGF Land, paving the way for two JV partners - Emaar Properties and MGF
Development - to go separate ways.
The demerger process got completed in July 2018.
Post-demerger, Emaar India has about 4,500 acres of land bank across the country.
In August 2018, Gupta had said that the company would complete all delayed projects, comprising
10,000 units, by the end of 2019.
Emaar India is currently developing projects in Gurgaon, Jaipur, Lucknow, Mohali and Chennai.
Page 5 of 28Newspaper/Online ET Realty (online)
Date July 24, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/piramal-extends-
reit-tenure-by-a-year-on-project-delay/70355368
Piramal extends REIT's tenure by a year on project delay
In a letter to investors that ET has seen, Piramal said it will be pursuing the first annual
extension.
The real estate investment trust (REIT) established by Piramal Fund Management said it will extend
its tenure by a year, delaying exits, due to six projects worth about Rs 562 crore getting stuck. The
Indiareit Fund Scheme V was launched in 2013 with a primary term of six years, extendable by up to
two additional one-year periods. The primary tenure ends on July 31.
In a letter to investors that ET has seen, Piramal said it will be pursuing the first annual extension. The
fund had invested in 10 projects. It has fully exited from four and partially from one. The six projects
under construction account for a combined investment of Rs 562 crore.
The projects have been hampered by delays in land acquisition, slow government approvals, green
tribunal orders, demand-supply mismatch and bankruptcy proceedings, Piramal told investors.
The fund said it was keeping investors informed in line with regulations. “As per standard corporate
policy and as governed by Sebi and in the spirit of transparency, Indiareit Fund V has shared the
current status of residual investments with all its investors,” a spokesperson told ET.
Large Corporates Tested
“The Investment Advisor will continue to manage the residual investments towards their ultimate
monetisation during the remainder of the extended fund term. Piramal Fund Management remains
committed to deliver improved performance and consistently create longterm value for its
stakeholders,” the spokesperson told ET in an email.
The liquidity crisis gripping NBFCs has roiled the real estate market and tested some of India‟s large
corporates, with a slowdown in credit pickup and oversupply forcing exits. In June, the Aditya Birla
Group‟s first private equity real estate fund went in for liquidation because of volatile market
conditions, having raised Rs 1,056 crore. Its Fund I returned Rs 601 crore to investors by exiting four
projects out of 13. In a note to investors, the fund managers said that structural changes in
the industry such as the Real Estate (Regulation and Development) Act — or Rera — and
implementation of the goods and services tax (GST) in July 2017, though beneficial in the long run,
had hit demand and absorption levels.
The past eight months have been tough for housing finance companies (HFCs) given that they have
the highest asset-liability mismatches among NBFCs. They have sought to manage the situation by
Page 6 of 28curbing disbursements, selling assets and loans, and diversifying borrowing sources. Funds have not
been able to secure exits in such a market.
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Page 7 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-
attaches-four-properties-linked-to-dsk-group/70338662
Maharashtra attaches four properties linked to DSK Group
Amitabh Gupta, the department‟s principal secretary (special), issued the notification on June
18 under the Maharashtra Protection of Interest of Depositors (MPID) Act. It has been
published in the state gazette on July 17.
The state home department has issued a notification on attaching four immovable properties belonging
to three relatives and a firm of D S Kulkarni, alias DSK, in the alleged Rs 2,091 crore economic fraud
by the developer and his group of companies.
Amitabh Gupta, the department‟s principal secretary (special), issued the notification on June 18
under the Maharashtra Protection of Interest of Depositors (MPID) Act. It has been published in the
state gazette on July 17.
This is the second notification of attachment issued so far in the case. The first notification was issued
on May 5, 2018.
More attachments are expected considering that the Pune police‟s proposal to attach another 25 DSK
properties is pending before the home department. The TOI had reported it in its July 11, 2019,
edition.
“The four newly attached properties are land parcels at Kirkatwadi in Haveli, Naygaon in Maval and
Bavdhan Budruk in Mulshi talukas of Pune district. Two land parcels at Kirkatwadi are held by
DSK‟s wife, Hemanti, and first deceased wife, Jyoti,” special prosecutor Pravin Chavan told TOI.
“The Naygaon land parcel is owned by DSK‟s son Shirish and the Bavdhan property is held by Vaastu
Visharad Promoters and Developers, one of 52 firms of the group,” he said. “All four properties were
part of a proposal in which the police had sought attachment of total six properties. We are examining
the shortcomings, if any, in relation to the two properties excluded from the notification,” Chavan
said.
Chavan said, “The cumulative worth of these properties could be around Rs100 crore. We shall now
apply to the special MPID court in Pune for confirmation of the state notification and permission to
auction these properties.”
Already, an application for auction of 143 freehold properties belonging to DSK, his relatives and
firms is pending before the special MPID court in Pune. These were part of the first attachment
notification. Money raised from such auction, as and when allowed, would be distributed among the
depositors affected by the alleged economic fraud.
Page 8 of 28The main case is slated for next hearing before special MPID judge A S Bhaisare here on July 31.
Prior to that, a few miscellaneous applications are to be heard by the court on July 24, said Chavan.
____________________________________________________________________
Page 9 of 28Newspaper/Online ET Realty (online)
Date July 24, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/only-8438-flats-
alloted-in-dda-housing-scheme-2019-draw/70349646
Only 8,438 flats allotted in DDA housing scheme 2019 draw
The scheme, which is completely online had ended on June 10, and was for sale of nearly 18,000
newly-built flats in Delhi's Vasant Kunj and Narela residential areas, for which the DDA had
received about 50,000 applications, the urban body had earlier said.
The DDA on Tuesday held the draw of lots for its Housing Scheme 2019 for which only 10,294 flats
were put on offer, out of the original kitty of nearly 18,000 units. Even in the final draw of lots, out of
10,294, only 8,438 flats were alloted in various categories from 45,012 applicants, a senior official
told reporters.
"The original total quantum of 17,921 flats was reduced to 10,294 as very less number of people
applied for flats in Narela, especially in the EWS category," another senior official told .
The scheme, which is completely online had ended on June 10, and was for sale of nearly 18,000
newly-built flats in Delhi's Vasant Kunj and Narela residential areas, for which the DDA had received
about 50,000 applications, the urban body had earlier said.
"People had the option to mark seven choices, depending on flat types and area, and less flats were
picked in random computer-based draw of lots, as many applicants did not choose Narela options,"
the official said.
The draw of lots for the scheme was held at the Conference Room of Vikas Sadan, and the process
was streamed live on the web through the DDA website.
Many applicants, who had come to Vikas Sadan, complained that the DDA website was not opening
after the end of the draw of lots, which started at 12:30 pm and lasted for over an hour.
Saroj Yadav, an applicant in the disabled category, was the first one to be picked up as an overall
successful allottee, and got an MIG flat on ground floor in Vasant Kunj.
Ved Prakash Thakur was the first successful allottee in the general category, who got a flat on fifth
floor in Vasant Kunj.
Persons with disability are given first preference in the draw of lots to get the ground floor, the DDA
official said
The draw of lots was held in the presence of retired high court judge, justice S N Aggarwal, Prof
Anshul Kumar of IIT-Delhi and Deputy Director General of NIC Vishnu Chandra, he said.
Page 10 of 28Many interested applicants also visited the DDA headquarters at Vikas Sadan at INA to watch the
proceedings at Nagarik Suvidha Kendra, on a screen.
The DDA Housing Scheme 2019 was launched on March 25, offering flats across four categories.
The deadline for application was extended by a month till June 10, after getting a low response. The
deadline for the same was May 10 earlier.
The flats were on offer in four categories: HIG, MIG, LIG and EWS.
Of the 45,012 final applicants, 36,409 belong to General category, 5,021 Scheduled Castes and 2,025
Scheduled Tribes and 97 war widows, among others, the senior official said.
____________________________________________________________________
Page 11 of 28Newspaper/Online ET Realty (online)
Date July 24, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/wework-
looking-to-go-public-as-early-as-september-source/70355392
WeWork looking to go public as early as September: Source
The developments were first reported earlier by the Wall Street Journal.
Shared office space manager WeWorkis looking to go public as soon as September, earlier than
previously expected, a person familiar with the matter told Reuters on Tuesday.
The company is expected to make its initial public offering paperwork public in August, the person
said.
The developments were first reported earlier by the Wall Street Journal.
WeWork declined to comment.
WeWork will host an analyst day for Wall Street banks on July 31 as part of preparations for its IPO,
Reuters reported last week.
WeWork is also looking to raise $5 billion to $6 billion through a bond offering before the IPO, the
source added, requesting anonymity because the matter is private. This is more than it had previously
been looking to raise.
The debt offering could provide comfort to those investing in the IPO who might be concerned that
the cash burn at WeWork is so great it will need to raise more money after the initial offering, which
would dilute their shareholdings.
"That's a very known psychology by underwriters and IPO investors, and (that fear), that's something
people try to guard against," said Adam Troso, head of real estate corporate advisory at Greenhill &
Co in New York.
WeWork was recently valued at $47 billion in a private fundraising round, making it one of the most
valuable private companies in the world.
However, the money-losing company has faced questions about the sustainability of its business
model, which is based on short-term revenue agreements and long-term loan liabilities.
The losses at WeWork's parent company narrowed slightly in the first quarter of 2019 to $264 million
as revenue continues to double annually.
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Page 12 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ed-files-money-
laundering-case-against-amrapali-group-promoters/70343698
ED files money laundering case against Amrapali Group, promoters
The ED is looking to grill the promoters of the group and find their assets which can be attached
on charges of contravening the anti-money laundering law, the officials said.
The Enforcement Directorate has filed a criminal case of money laundering against embattled real
estate major Amrapali Group and its promoters, who allegedly failed to give possession of flats to
over 42,000 home buyers in Noida and Greater Noida, officials said on Tuesday.
The central agency's zonal office in Lucknow filed a case under the Prevention of Money
Laundering Act (PMLA) early this month after taking cognisance of at least 16 FIRs registered
against the group by the Noida Police.
The ED is looking to grill the promoters of the group and find their assets which can be attached on
charges of contravening the anti-money laundering law, the officials said.
On Tuesday, the Supreme Court directed the ED to investigate money laundering by directors and
officials of the Amrapali Group.
The court also cancelled the lease granted by Noida and Greater Noida authorities to all projects of the
realty group.
It directed the Centre and the state governments to take appropriate action against builders who have
not delivered projects on time.
On February 28, the apex court had allowed the Delhi Police to arrest Amrapali Group chairman and
managing director, Anil Sharma, and two directors on a complaint that buyers of their various housing
projects were duped.
The top court, which is seized of several pleas of home buyers seeking possession of around 42,000
flats booked in Amrapali projects, had also ordered attachment of personal properties of Sharma as
also its directors -- Shiv Priya and Ajay Kumar.
____________________________________________________________________
Page 13 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/indiabulls-
housing-finance-may-invest-rs-250-crore-in-lakshmi-vilas-bank/70343626
Indiabulls Housing Finance may invest Rs 250 crore in Lakshmi Vilas
Bank
“The Chennai-based lender would soon issue perpetual bonds with seven or 10-year maturity as
it needs money to maintain the capital adequacy ratio,” one of the persons told ET.
Indiabulls Housing Finance may invest Rs 250 crore in Lakshmi Vilas Bank via bonds as the bank
looks to boost its capital to comply with the capital needs for its pending merger with the mortgage
firm, said two people with the direct knowledge of the matter.
“The Chennai-based lender would soon issue perpetual bonds with seven or 10-year maturity as it
needs money to maintain the capital adequacy ratio,” one of the persons told ET.
Lakshmi Vilas Bank did not reply to ET‟s email seeking comments on the matter.
“We have infused Rs 188 crore by way of subscription to 5 per cent LVB‟s equity under preferential
allotment. As for perpetual debt, there‟s no confirmed plan as of now,” said an Indiabulls Housing
spokesperson. An investment through bonds would help Lakshmi Vilas, which has seen its capital
erode in the past few years as its bad loans piled up due to poor underwriting standards.
The two firms — a housing finance company and a bank — have proposed to merge their operations
as an attempt to synergise their need for low-cost funds and capital.
The bank is now in talks with a credit rating company to obtain a rating grade for such perpetual bond
issuance. The lender‟s 10-year paper issued in 2014 offered a coupon of 11.80 per cent. Perpetual rate
is likely to be higher than this.
Page 14 of 28Perpetual bonds are more of a quasi-equity obligation. If an issuing bank incurs losses in a financial
year, it cannot make coupon payment to its bondholders even if it has enough cash. These securities
are also known as additional tier 1 (AT1) in market parlance with no fixed maturity but with call
option.
They offer higher rates than normal bonds due to heightened risk perception where the bonds could
get converted into equity. Going by that LVB is likely to offer rates in double digits.
About a month ago, the Competition Commission of India (CCI) approved the merger between
Indiabulls Housing Finance and Lakshmi Vilas Bank. The proposed amalgamation awaits approval
from the Reserve Bank of India.
Earlier in April, the board of Lakshmi Vilas Bank announced its merger with Indiabulls Housing
Finance in a share-swap deal. The bank would receive 14 shares of Indiabulls Housing Finance for
every 100 shares it holds.
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Page 15 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/east-delhi-civic-
body-extends-time-limit-for-property-tax-rebate/70346460
East Delhi civic body extends time limit for property tax rebate
The deadline had earlier been extended from June to July 31 and has been revised again.
East Delhi Municipal Corporation has extended the deadline for getting rebate on early payment
of property tax from July 31 to August 31. Civic bodies provide 15% rebate on property tax if people
pay their annual taxes till June of that financial year.
The deadline had earlier been extended from June to July 31 and has been revised again.
House councillors have also decided that doctors and physicians, who are practicing in small clinics
and nursing homes, will be given rebate as per the Municipal Valuation Committee-I report. This will,
however, not include plots allotted by the DDA or government properties.
The resolution argues that the aim to extend the deadline is to bring as many property tax payers in the
tax net as possible.
____________________________________________________________________
Page 16 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/kolkata-civic-
body-makes-mutation-process-of-properties-easier/70344343
Kolkata civic body makes mutation process of properties easier
Owners of lands in areas like Joka, Behala, Garia and those located off Eastern Metropolitan
Bypass will benefit from the move.
People residing in the added areas will not need to go to a BLRO (block land revenue officer) office
to get mutation of their properties done. After much persuasion, Kolkata Municipal Corporation has
finally managed to shift two BLRO offices from Behala and Kasba to the civic headquarters on SN
Banerjee Road for a single-window clearance of mutation or building plans for residents of added
areas.
Owners of lands in areas like Joka, Behala, Garia and those located off Eastern Metropolitan Bypass
will benefit from the move. According to rules, residents of these areas needed to pay double taxation
by paying fees to BLRO and KMC for doing mutation or getting a building sanction plan. Owners of
three cottahs or less land will not need a BLRO certificate for mutation of their land or a building
constructed there.
Those who own more than three cottahs and want to build a house, will no longer have to run from
pillar to post to get their mutation done or seek a sanction for their building plans.
Mayor Firhad Hakim on Monday inaugurated offices for the BLROs who had been issuing certificates
for residents of added areas from Behala and Kasba. Later, Hakim told mediapersons that the residents
of added areas who need mutation certificates or building sanction plans will need to visit the KMC
headquarters. “We have accommodated BLRO offices to provide relief to residents of added areas.
Now they will get mutation certificates and building sanction plans without any harassment,” Hakim
said.
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Page 17 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/secunderabad-
cantonment-board-may-seize-movable-assets-of-property-tax-
defaulters/70338766
Secunderabad Cantonment Board may seize movable assets of property
tax defaulters
Senior officials said SCB sought opinion of legal experts to implement the proposal.
Forty commercial properties have been sealed and property tax dues to the tune of Rs 2 crore was
recovered ever since the Secunderabad Cantonment Board(SCB) has decided to get tough on
defaulters after notices have failed to yield the desired result. Highly-placed sources told TOI that
SCB is now contemplating sending legal notices to property owners for failing to pay property tax
dues and seizing their movable assets.
Senior officials said SCB sought opinion of legal experts to implement the proposal. “Under this
provision, we will seal or seize movable assets like two- wheelers and four-wheelers, home appliances
like television sets, refrigerators, washing machines, air-coolers and other items equal to the property
tax payable,” said an official. He said among the defaulters are nursing homes, clinics, mobile phone
shops, petrol outlets and commercial establishments.
Officials said SCB had given enough time for the defaulters to clear their dues. “Our tax wing has
been serving red notices to the defaulters but in vain. Officials have visited properties but the response
has been lukewarm. It was then that we decided to seal their movable assets,” a senior official said.
SCB launched the drive on July 5 to seal commercial properties. “Nearly Rs 10 crore worth property
tax is pending with both residential and commercial properties in the Cantonment for 2018-19 fiscal
year. As per the notice, all the property owners have to pay tax by March 31,” a tax department
official explained.
Sources said the individual property tax dues range from Rs 3,000 to Rs 4 lakh. “After we cracked the
whip, some defaulters have come forward and cleared Rs 2 crore tax,” he added.
Officials said the drive against errant properties would continue.
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Page 18 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/pimpri-
chinchwad-civic-body-orders-inquiry-into-illegal-construction-water-shortage-
issues/70343125
Pimpri Chinchwad civic body orders inquiry into illegal construction,
water shortage issues
Residents complain of water shortage, lack of waste management, illegal constructions — all the
promises that builders faltered on
Pimpri-Chinchwad has marked tremendous developments over the decade — its city scape now dotted
with plush housing societies, offering homes to prospective buyers. However, the residents have
complained of habitual snags pertaining to builders not fulfilling their promises, leaving them in a
dearth of fundamental resources.
These problems were collectively listened to by Pimpri-Chinchwad Municipal (PCMC)
commissioner, Shravan Hardikar, on Monday, who has ordered an inquiry into the issues like, water
shortage, wet waste management and illegal construction in parking space carried out by developers.
The diktat was issued in a meeting between the civic chief, Member of Legislative Assembly (MLA)
of Bhosari constituency, officials of PCMC and members of more than 161 housing societies from
Chikali, Moshi, Dudulgaon, Jadhavwadi, Charoli. The latter attendees recounted a host of problems,
beginning with water problems.
“The housing societies are facing an acute water shortage in the area and have to spend more than Rs
150 crore every year just on this resource. The water tankers charge exorbitantly,” said Sanjeevan
Sangale, secretary of Moshi-Chikali housing societies, adding, “The builders were supposed to
provide the water to us. There are several illegal constructions in the parking spaces that should be
ideally vacant. This was brought to PCMC chief‟s notice.”
Along with water issues, several other issues have prevailed despite the builders acquiring a
completion certificate. Sangale added that the large housing societies also face issues of wet waste
management. “The builders have not set up wet garbage composting units on their premises. The
PCMC chief was informed that the building permission department should not approve any revision in
the plan if the owners are not taken into consideration,” he added.
Page 19 of 28Bhosari MLA Mahesh Landge assured that they are working on the water shortage in an otherwise
wellplanned area. “The resolution will take some time. The citizens have purchased the houses with
some dreams but are facing inconvenience as the developers have not worked on their commitments.
We want to find a common way out for citizens‟ concerns,” he said, adding that he appreciates civic
chief‟s immediate action that will “prove to be a huge relief for the citizens”.
At present, a lot of the efforts are directed towards increasing the water availability by bringing the
Bhama Akshed water to the city, according to PCMC chief Hardikar. “We have also discussed a
possible solution to the exploitation of citizens by the water tanker lobby. An order has been issued to
fix a uniform rate to steer clear of discrimination,” he said.
To facilitate the supply, the water charge — according to Hardikar — has to be brought under control,
for which the water department has been given a month‟s deadline.
Moreover, PCMC officials have been instructed to find out developers, who have violated the
building plans, especially the parking norms. The illegal constructions have to be razed immediately.
Apart from this, waste management has been announced on priority.
Hardikar said, “I have asked for wet waste composting units in the societies. In cases, where builders
had to provide the plants and have not done, action must be initiated against the defaulters. PCMC‟s
building permission department will conduct the inquiry and cross-verify the documents that have
been submitted to the Maharashtra Pollution Control Board.”
A senior developer, who wishes to stay anonymous, admitted to the water shortage in the area. He
called it temporary and added that PCMC is working on a resolution. As far as building plans are
concerned, he said that the Real Estate (Regulation and Development) Act, 2016 does not allow for
revisions without permissions. “Permissions are mandatory to make the changes. The owners‟
consideration is equally important. The state government is bringing a new parking policy and this
will solve all the ambiguity of parking,” he added.
Page 20 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/greater-
hyderabad-civic-body-to-pull-down-over-450-wobbly-buildings/70338892
Greater Hyderabad civic body to pull-down over 450 wobbly buildings
“We have identified 457 dilapidated buildings across the city and notices have been served.
Residents will be evacuated and the buildings sealed,” said GHMC commissioner M Dana
Kishore.
A day after baby Goutham died when the roof of an old house collapsed in Sitaphalmandi, the Greater
Hyderabad Municipal Corporation (GHMC) decided to crack the whip on errant buildings and
demolish them.
“We have identified 457 dilapidated buildings across the city and notices have been served. Residents
will be evacuated and the buildings sealed,” said GHMC commissioner M Dana Kishore on Monday
during a video conference with senior officials. Kishore instructed chief city planner S Devender
Reddy to issue a charge memo to the residents concerned. He said that it was unfortunate that a child
had died in a roof collapse incident.
Most of the dilapidated buildings are in Goshamahal circle (151), followed by Begumpet (104) and
Malakpet (31). Government quarters in Malakpet and GHMC zonal office in Charminar are also in
bad shape.
“If structural stability of a building can be restored by renovation, we will allow them. To begin with,
they have to vacate the buildings,” said a GHMC official.
Page 21 of 28While GHMC identified 457 structures, ground verification by TOI revealed there are several
structures at risk of collapsing. Sunday‟s incident highlighted the slow pace at which dilapidated
structures are being razed in GHMC limits. “The authorities should fast-track construction of GHMC
zonal office in Faluknama and vacate the Charminar office immediately,” said a resident.
Professor NV Ramana Rao, director of National Institute of Technology, Warangal, favoured periodic
inspections to verify the structural stability. “The Malakpet government quarters need urgent repairs.
When water leaks from the walls and during rains, the situation turns worse,” said a resident of
Malakpet.
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Page 22 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/rajasthan-
housing-board-to-sell-over-6800-flats-on-discount/70344174
Rajasthan Housing Board to sell over 6,800 flats on discount
The board has recently forwarded a proposal to the state government to sell its 6,800
constructed flats of different categories across the state on discount.
Rajasthan Housing Board ( RHB) is set sell its flats „over the counter‟ at discounted rates once it
receives the nod from the state government.
The board has recently forwarded a proposal to the state government to sell its 6,800 constructed flats
of different categories across the state on discount.
Under „over the counter,‟ one can purchase a flat or house in a day. It‟s unlike the earlier system of
allotting houses through a draw of lots, wherein buyers had to wait for months.
Sources in the department said, “After examining the proposal, the Urban Development and
Housing (UDH) department has given its approval. The process will start only after UDH
minister Shanti Dhariwal‟s nod.”
As per the proposal, the RHB will provide these houses on 0 to 45% discounted rates. There are
approximately 1,700 houses in Jaipur located in Indra Gandhi Nagar, Pratap Nagar and others.
After failing to sell off its houses, the RHB had initiated an exercise to sell off its unsold flats and
houses on discounted rates. At present, the board has more than 24,000 unsold flats in Jaipur, Jodhpur,
Kota, Udaipur, Alwar and Bikaner circles.
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Page 23 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/water-woes-in-
high-rise-buildings-in-jaipur-to-continue/70338822
Water woes in high-rise buildings in Jaipur to continue
In November 2016, PHED proposed that residents will have to shell out Rs 42 per square feet
(one-time charge) of the built-up area to get the connection.
Water woes for city residents staying in multi-storey buildings may not end soon. In absence of funds,
the Public Health Engineering department (PHED) is not able to take up Rs 72 crore project to
provide water connection.
In November 2016, PHED proposed that residents will have to shell out Rs 42 per square feet (one-
time charge) of the built-up area to get the connection. However, the project never took off as the
decision faced opposition from developers and resident welfare association .
Sources in the department said, “ In a recent meeting with developers, it was proposed that residents
can pay 20% of the amount of total cost to get water connection and the remaining amount could be
paid in installments. However, the proposal is difficult to implement in buildings where people are
already living.”
Taking a cue from Delhi‟s water department, PHED had prepared a self-finance scheme model.
“Though it‟s a self-finance scheme model, the department requires capital to update infrastructure to
supply water. Generation of revenue from the consumers is a long-term process,” said a source
The department requires initial capital as it has developed infrastructure for transmission and
distribution of water from Bisalpur. As per the previous proposal, the PHED department had proposed
to levy this cost on residents staying in residents. However, to provide relief to residents, it was later
proposed the state government should also bear this cost. The proposal was forwarded to the state
government earlier, but its biting dust in absence of funds.
Currently, PHED has infrastructure to supply water only to „ground-plus-two floors‟ category of
buildings. With an increase in number of high-rises in residential localities, the demand for water
connections has been growing at a faster pace over the past few years.
As PHED is not able to provide water connections to high-rise buildings above 15 metres in absence
of infrastructure, residents living even in posh localities in multi-crore apartments have to remain
dependent on tankers.
Kirti Singh, who lives in Tilak Nagar , said, “If the Jaipur Development Authority (JDA) gives
permission to construct a building, it should ensure the developer provides facility of water to the
residents. Many a times, we are forced to store water in buckets for use in lavatories and kitchen
during the day.”
Page 24 of 28____________________________________________________________________
Page 25 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/more-than-
1400-buildings-in-shahberi-unsafe/70338720
More than 1,400 buildings in Shahberi „unsafe‟
As per the survey report, the 1,453 illegal structures in Shahberi include 426 residential
buildings with three or more floors that are the builder apartments.
The Greater Noida Authority has identified over 1,450 unauthorised structures in Shahberivillage in a
survey. And Google Earth images have revealed that maximum constructions took place between
2014 and 2018, officials said.
As per the survey report, the 1,453 illegal structures in Shahberi include 426 residential buildings with
three or more floors that are the builder apartments.
There are also 1,022 buildings with ground plus two floors that may be builder apartments or would
have been built by locals for personal use.
Also, there are five commercial buildings with outlets for daily needs, garments, photocopy and
medicines, the survey reveals.
“All these buildings are illegal and unsafe and will eventually have to be demolished. To start with,
these five commercial buildings will be demolished,” said Narendra Bhooshan, the CEO of Greater
Noida Industrial Development Authority (GNIDA), told TOI.
“We have also asked all residents to stay alert as we are not sure about the structural strength of these
buildings,” he added.
Another official said Google Earth images have revealed that “most of the buildings started coming up
after 2014 and have been built over a period of four years”.
The survey traces its roots to the twin building collapse on July 17 last year, in which nine people
were killed. The accident lifted the veil off rampant unauthorised construction and sale of properties
in the area — right under the nose of all agencies concerned — despite a court order banning the
practice in 2014.
Meanwhile, residents and buyers have distanced themselves from the ongoing protest in Shahberi.
“We are approaching the Greater Noida Authority for a solution and have also sent a notice to banks
that have given us housing loans. However, the demonstration is being organised by builders, who
will also be at a loss if the buildings are demolished. Many of the flats are still unsold,” said Sachin
Raghav, a resident of Shahberi.
Page 26 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/pune-
development-body-eyes-drone-survey-to-iron-out-alignment-issues-of-
proposed-metro/70342400
Pune development body eyes drone survey to iron out alignment issues
of proposed metro
As per PMRDA sources, the drone survey will help the officials understand the financial model
of increasing the height of the Metro line, the HCMTR, and the existing flyover.
A drone survey has been proposed for the 23 km Metro project being developed by the Pune
Metropolitan Region Development Authority (PMRDA) from Hinjewadi to Shivajinagar.
The survey has been put forward to iron out alignment issues at the University circle, where a
proposed three-tier system, comprising the existing flyover, the high capacity mass transit route
(HCMTR), and the Metro, will be in place.
As per PMRDA sources, the drone survey will help the officials understand the financial model of
increasing the height of the Metro line, the HCMTR, and the existing flyover.
With the Hinjewadi-Shivajinagar Metro and the proposed HCMTR jostling for space, the fate of the
University flyover, which comes in the way of both the projects, will be decided after the drone
survey is carried out, and a detailed report is prepared by a team of experts from the Pune Municipal
Corporation, the PMRDA and the concessionaire —Tata-Siemens.
The report is expected to be out in the first week of August and the final fate of the flyover will thnbe
decided then, the sources added.
A technical study was conducted earlier to take a call on whether the flyover, built in 2007, needs to
be pulled down, realigned or integrated into the Metro and HCMTR hybrid route.
As per sources, all three options are under consideration. In the event of reconstruction, the PMC and
PMRDA will work out the financial modalities, but if the flyover is to remain as it is, then the
PMRDA will focus only on the Metro line, the officials added.
While the PMC is keen on a new flyover at the site, the modalities of funding will have to be worked
out between the two bodies, stated the officials.
For its part, the PMRDA is keen on retaining the flyover as it stands, and raising the height of the
Metro viaduct to 13m. A final decision will be taken only after engineering experts give the go-ahead
in the first week of August.
Page 27 of 28Tata Realty Infra and Siemens, the consortium appointed to build the 23km Metro line, have finished
marking the route and studying the technical details of the Metros in Mumbai, Delhi and Hyderabad.
The consortium has started work on designing the pillars for the Metro line.
The Maharashtra Metro Rail Corporation is developing the other two Metro lines — PCMC-Swargate
and Vanaz-Ramwadi — in the PMC and PCMC limits.
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Page 28 of 28Newspaper/Online ET Realty (online)
Date July 23, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/pnb-
housing-to-raise-tier-i-capital-by-issue-of-equity-shares/70349606
PNB Housing to raise tier-I capital by issue of equity shares
In May 2019, the company had confirmed that it is looking to sell shares to raise fresh equity
capital to support growth.
PNB Housing Finance on Tuesday said that it plans to raise tier-1 capital by issue of equity shares or
any other financial instruments through preferential issue. The company made this announcement in a
BSE filing.
"The board has earlier approved the business plan for current financial year which also incorporates
the requirement for capital raise. Subsequent to the same we will seeking omnibus approval in the
upcoming board meeting for raising tier-I capital by issue of equity shares or any other financial
instrument as may be considered appropriate,” the company said.
In May 2019, the company had confirmed that it is looking to sell shares to raise fresh equity capital
to support growth. The media reports had suggested that the company is looking to raise Rs 1,800-
2,000 crore this fiscal year.
PNB Housing borrowed Rs 30,843 crore in FY19 through long-term instruments, like bank term loans
and ECBs.
The company had reported a 51 per cent jump in its consolidated net profit to Rs 379.77 crore for the
fourth quarter ended March 2019. Its total income during the quarter rose to Rs 2,148.19 crore, up by
31 per cent as compared with Rs 1,638.48 crore in the year-ago quarter, the company had said in a
regulatory filing.
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Page 29 of 28Newspaper/Online The Millennium Post
Date July 23, 2019
Link http://www.millenniumpost.in/business/nhbs-crackdown-on-home-loans-
under-subvention-scheme-to-affect-buyers-builders-365002
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