29 NOV 2021 - CREDAI Bengal Homes

29
NOV 2021

CREDAI Bengal Daily News Update | 29.11.21

 Newspaper/Online        Financial Express ( Online )
 Date                    November 27, 2021
                        https://www.financialexpress.com/industry/rera-provides-robust-
 Link                   regulatory-mechanism-to-protect-rights-of-home-buyers-centre-to-
                        sc/2377444/

 RERA provides robust regulatory mechanism to protect rights of
                 home buyers: Centre to SC
"There is a robust regulatory mechanism and a draft 'agreement for sale' has already been
prescribed under the provisions of RERA, which seeks to balance the rights and interest of
home buyers and promoters in an accountable and transparent manner," it said.

The Centre has told the Supreme Court that there is a robust regulatory mechanism and draft
‘agreement for sale’ has already been prescribed under the provisions of RERA, which seeks to
balance the rights and interest of home buyers and promoters in an accountable and transparent
manner.

The Centre has filed an affidavit in the top court on a plea seeking direction to to frame model
pacts for builders and agent buyers to protect customers and bring in transparency in the realty
sector in line with the Real Estate Regulatory Authority (RERA) Act, 2016.

 “There is a robust regulatory mechanism and a draft ‘agreement for sale’ has already been
prescribed under the provisions of RERA, which seeks to balance the rights and interest of home
buyers and promoters in an accountable and transparent manner,” it said.

It said that according to section 84 of RERA, the appropriate government that is state government
save in the instances involving its application in the territory of union territories has to notify
rules for carrying out the provisions of this Act.

The union government said that it has shared the draft ‘agreement for sale’ in 2016 itself after the
enactment of RERA with all the states and union territories and currently, all the states and union
territories have notified rules under RERA except Nagaland with which the Centre is in
discussion.

“It must be brought before the consideration of this court that prior to 2014 Real Estate Sector
was largely unregulated. Under the regulatory regime of RERA, the ongoing projects which have
not received the completion certificate; need to get registered under RERA,” it said, adding that
RERA ensures transparency, accountability, and financial discipline in the real estate sector.

The affidavit said that RERA mandates for registration of projects before advertising, marketing,
booking, selling and the law ensures the timely delivery of real estate projects and the entire fund

flow is also subject to strict monitoring by the regulator to avoid diversion of funds, which will
also secure the interest of home buyers.

“The RERA seeks to address vital issues of fair transactions, timely delivery, and quality
construction through speedy adjudication of disputes, thus empowering the home buyers,” it said.

The Centre said that under the provision of RERA, if the developer fails to complete the project
as per terms of agreement for sale, a home buyer can either seek a refund of paid amount along
with interest or ask for interest for every month of delay, till the handing over of the possession.

“RERA also provides for strict penal provisions of imprisonment in addition to provisions of
refunds, interest, and penalty in case of non-compliance by developers, allottees, and agents,” it
said.

On November 8, the top court while hearing the plea filed by advocate Ashwini Upadhyay had
said that a model builder-buyer agreement is needed in the real estate sector and the Centre should
file its reply on the issue as it is an “important matter in the public interest”.

On October 4, the top court had said it is important for the country to have a model builder-buyer
agreement in the real estate sector for consumer protection because developers try to put
numerous clauses in it, which common people may not be aware of.

Upadhyay had said that there should be a model agreement prepared by the Centre as some states
have it and some don’t, and there is no uniformity in those agreements.

The PIL has sought direction to the Centre to frame model pacts for builders and agent buyers to
protect customers and bring in transparency in the realty sector in line with the Real Estate
Regulatory Authority (RERA) Act, 2016.

The plea, which was filed in October last year, has also sought a direction to all states to enforce
the ‘Model Builder Buyer Agreement’ and ‘Model Agent Buyer Agreement’ and to take steps to
avoid “mental, physical and financial injury” to customers.

Due to deliberate excessive delays in possession, real estate customers are not only suffering
mental and financial injury but also a brazen violation of their right to life and livelihood stated
the PIL filed through advocate Ashwani Kumar Dubey.

“Builders issue revised delivery schedules again and again and adopt arbitrary unfair restrictive
trade practices. All this amounts to criminal conspiracy, fraud, cheating, criminal breach of trust,
dishonestly inducing delivery of the property, dishonest misappropriation of property, and
violation of corporate laws,” said the plea.

It contended that many developers across the country still follow a common practice of pre-
launching a project without securing requisite approvals from the authorities and term it “soft
launch” or “pre-launch”, thus openly violating the law, but no action has been taken against any
builder till date.

It has also sought directions to compensate the buyers for losses incurred due to inordinate delays
on the part of promoters-builders and to recover their money.
_____________________________________________________________________

Newspaper/Online        Money Control ( Online )
 Date                    November 28, 2021
                        https://www.moneycontrol.com/news/business/personal-finance/home-
 Link                   loan-dues-of-a-deceased-person-co-borrower-or-legal-heir-must-
                        repay-the-bank-7763891.html

  Home loan dues of a deceased person: Co-borrower or legal heir
                       must repay the bank

In case of the demise of the borrower, the bank can help on compassionate grounds to make
the repayment process easier

Over the past 18 months, the COVID-19 pandemic has disrupted many people’s finances.

One sticky situation that the near ones of deceased family members have found themselves in is
when they discovered home loans that the persons who passed away were repaying.

If a borrower passes away without fully repaying the loan, the obligation falls on to the co-
borrower(s) or legal heirs.

Was the home loan insured?

Check the home loan documents thoroughly to see if the deceased borrower had taken a home
loan insurance. Or, ask the bank if there was one. “A home loan insurance is a guard against the
risk of default in the event of the untimely demise of the borrower. Because of such uncertainty,
during the loan tenure, the insurance company will settle any outstanding amount on the home
loan with the lender,” says Adhil Shetty, CEO of BankBazaar.com.

Lenders mainly offer two types of home loan insurance policies – a reducing balance plan or a
level cover plan. In a reducing balance insurance plan, the coverage and outstanding loan reduce
with the tenure. “In the reducing balance plan, when there is a claim because of the demise of the
borrower, the insurance firm settles the outstanding dues of the bank,” says Atul Monga, Co-
founder and CEO of BASIC Home Loan.

In a level cover plan, the insurance cover remains the same throughout the loan tenure. Let’s say
the deceased borrower had taken an insurance cover of Rs 1 crore against a home loan. If she had
serviced a Rs 50 lakh loan with regularly, upon the demise of the borrower, the insurance
company will repay Rs 50 lakh dues to the bank. The insurance company will give the remaining
Rs 50 lakh to the borrower’s family who had taken the loan.

Can the insurance company deny the claim?

Yes, an insurance company can deny the claim in case of non-disclosure of pre-existing health
conditions, which violates the insurance agreement. The insurance company processes the home
loan insurance only in case of natural or accidental death of the borrower.

Home loan insurance products are expensive and so the lender includes the premium in the loan
amount. Shetty says that some people take a home loan with an insurance cover (the premium
gets embedded in the EMI) and then port over to another bank for a cheaper home loan. “The
insurance policy bought would not be ported,” he cautions. In such cases too, your insurance
claim will be denied.

The tenor of the policy is usually the same as that of the home loan. “However, if the tenor of the
loan goes up because of a hike in interest rates, the insurance policy may not fully cover the loan,”
says Shetty. So, the co-borrower will have to shell out an additional amount on the demise of the
borrower.

Repayment without home loan insurance

In the absence of a home loan insurance policy, the responsibility to pay up the loan would fall
upon the co-borrower. The bank will also contact the home loan guarantor and the legal heirs for
repayment of loan EMIs. In case of the demise of the borrower, the bank can help on
compassionate grounds to make the repayment process easier.

“The bank would offer due time and flexibility for repayment. Approach the bank and request for
loan restructuring, moratorium of 3-6 months, or make a one-time settlement according to your
cash flows,” says Raj Khosla, founder and MD of MyMoneyMantra.com. He adds that another
option is to transfer the loan to other legal heirs who have a stable income stream. The bank will
be flexible and reset loan terms according to the repayment capacity of the new homeowner.

Can a lender take possession of the property?

Yes, the lender can take possession of the house under the SARFAESI Act, if the family or legal
heirs cannot repay the outstanding loan. “The lender then auctions the property to recover its
dues,” says Shetty. However, taking possession of the property is the last choice for the bank.
“The prime business for a lender is lending and not conducting property auctions. The bank would
earnestly help the family make arrangements for repayment,” says a retail banker of a public
sector bank requesting anonymity.

Before taking possession of the property, lending institutions give sufficient time to the co-
borrowers and legal heirs. The bank will classify the borrower's account as non-performing asset
(NPA) only after the home loan amount is overdue by 90 days. Next, the bank will furnish a
written demand notice to the co-borrowers requesting them to discharge liabilities within 60 days.
“On failure to respond to the same or after 30 days of any receiving dissatisfactory explanation,
the bank will go ahead with the public sale of the asset,” says Khosla. The bank will serve another

30-day public notice, sharing the details of the sale. He adds, in case the family makes some
payment within this period, they will get some breathing space to re-negotiate repayment terms.

To protect your family from loan liabilities due to any untimely demise, home loan insurance is
a must while taking the loan. “Just like financial planning, it is essential to plan a repayment
backup in case of untimely death,” says Khosla.
_______________________________________________________

Newspaper/Online       The Hindu BusinessLine ( Online )
 Date                   November 27, 2021
                        https://www.thehindubusinessline.com/news/real-estate/credai-advises-
 Link                   home-buyers-to-purchase-only-in-rera-registered-
                        projects/article37704417.ece

        CREDAI advises home buyers to purchase only in RERA-
                         registered projects

Home buyers warned of falling prey to pre-sale, pre-launch offers

The CREDAI (Confederation of Real Estate Developers' Associations of India) has asked the
Telangana Government to keep tabs on the extremely unhealthy and illegal practices by some
real-estate players that are luring gullible customers into buying spaces in unviable projects.

Asking the Government to strengthen the RERA (Real Estate Regulatory Authority) to curb these
practices by initiating stringent punishment against the players that are cheating the people.

 “Some real-estate operators and some others without having any experience in the business are
coming out with attractive schemes and offering to sell undivided share of land even before
securing approvals,” P Rama Krishna Rao, President of CREDAI Hyderabad, has said.

The leaders of CREDAI have gathered here on Friday to caution the public about the unhealthy
marketing strategies of some realestate players.

“They are selling such products at a nominal and discounted price to lure innocent home-buyers
and investors. The cost at which they are selling the properties is not sufficient to cover the cost
of construction,” he said.

He alleged that the proceeds were not being on the projects. “Sometimes the projects do not get
launched or get delayed indefinitely due to many legal and statutory issues, putting the purchaser
at a huge risk,” he said.

Ch Ramchandra Reddy, Chairman of CREDAI Telangana, said that the realestate market in the
State continued to be resilient and robust post the Covid-19 waves unlike other cities in the
country.

“The developers should not sell plots or flats to prospective purchasers without getting RERA
registration. Purchases made in projects without RERA registration are risky for the buyer,” he
said.

____________________________________________________________________

Newspaper/Online ET Realty ( Online )
 Date             November 27, 2021
 Link             https://realty.economictimes.indiatimes.com/news/residential/rwas-
                  urge-housing-ministry-to-give-them-constitutional-status/87962277

   RWAs urge housing ministry to give them constitutional status
The plea came up in the 8th National Conference of Resident Welfare Associations
(NCRWA) organised on November 23 and 24 at Ghaziabad in Uttar Pradesh.

Residential welfare associations (RWAs) across states have urged the Ministry of Housing and
Urban Affairs (MoHUA) to grant constitutional status to RWAs. They have asked to be treated
as the ‘fourth tier’ of governance.

The plea came up in the 8th National Conference of Resident Welfare Associations (NCRWA)
organised on November 23 and 24 at Ghaziabad in Uttar Pradesh. On Saturday, the United
Federation of RWAs (UFERWAS) delegation, who take part, released key resolutions which
were passed. Col Tejendra Pal Tyagi, chief convener, national conference, opined that the RWAs
are mini-municipalities, while still being much bigger than many village panchayats that are given
the status of a separate local government.

V V Rao, who represented Telangana, said that among the points highlighted was that storm water
management must be integrated with recharge and disposal facilities. Eleven proposals were
made which were subsequently passed as resolutions. These include RWAs mentioning specific
commitments for mitigation of climate change and launching an appeal to RERA authorities for
representation to RWAs in mediation cells, said UFERWAS, general secretary, B T Srinivasan.
____________________________________________________________________________________

Newspaper/Online        ET Realty ( Online )
 Date                    November 28, 2021
                        https://realty.economictimes.indiatimes.com/news/industry/delhi-
 Link                   government-gives-rs-5000-each-to-2-95-lakh-construction-
                        workers/87961902

   Delhi government gives Rs 5,000 each to 2.95 lakh construction
                             workers
Delhi has 6 lakh registered construction workers and another one lakh are in the process of
getting registered. The amount will be credited to the accounts of the remaining workers in
the next two days, the statement said.

The Delhi government on Saturday deposited Rs 5,000 each in the bank accounts of 2.95 lakh
construction workers who have been affected by the ban on construction activities in the national
capital in view of high pollution levels, according to an official statement

Delhi has 6 lakh registered construction workers and another one lakh are in the process of getting
registered. The amount will be credited to the accounts of the remaining workers in the next two
days, the statement said.

Chief Minister Arvind Kejriwal had on Thursday announced his government's decision to provide
financial assistance to the construction workers.

The assistance amount was deposited by the Kejriwal government in the accounts of 2.95 lakh
construction workers on Saturday. The amount will be sent to the accounts of other workers in
the next two days, the statement said

Deputy Chief Minister Manish Sisodia said the Delhi government is standing with construction
workers at every step.

"Workers are the spinal cord of the country that strengthens the country. If the worker is standing,
then our buildings are standing, the city is standing. Therefore, the honour and interests of the
workers are the main priority of our government," he said.

Construction activities have been banned in Delhi but the city government will assist the labour
brothers and sisters in every possible way, Sisodia said.

As long as the ban on construction activities continues in Delhi, the government will run
registration drives through large camps to register those construction workers who are not already
registered with the Delhi Construction Worker Board, he said.

"This step will help the Delhi government in assisting all construction workers in Delhi. There
are 10 lakh construction workers in Delhi, out of which seven lakh are now registered," the deputy
chief minister said.

After registration, all workers can also get the benefit of schemes introduced for their welfare, he
said.

Six lakh workers are registered with the Delhi Construction Worker Board and about one lakh
more are in the process of getting registered. After the process of registration of these workers is
completed, Rs 5,000 will also be deposited in their accounts, the statement said.

____________________________________________________________________________________

Newspaper/Online       ET Realty ( Online )
 Date                   November 28, 2021
                       https://realty.economictimes.indiatimes.com/news/regulatory/east-
 Link                  delhi-civic-body-proposes-increase-in-property-tax-new-
                       levies/87943101

 East Delhi civic body proposes increase in property tax, new levies
EDMC commissioner Vikas Anand proposed to increase property tax on residential
properties in C, D and E categories from 11% to 13 %, and in F, G and H categories from
7% to 10%.

To improve revenue generation, East Delhi Municipal Corporation (EDMC) on Friday proposed
an increase of 2-3% in property tax on residential and non-residential categories, 5% on
government accommodation, 10 times (Rs 5 to Rs 50) increase in fees for sanctioning building
plans, among other levies.

Presenting the proposed budget for financial year 2022-23, EDMC commissioner Vikas Anand
proposed to increase property tax on residential properties in C, D and E categories from 11% to
13 %, and in F, G and H categories from 7% to 10%.

The tax proposed for A–E non-residential categories was 15% of the annual value of the property
and 12% for F, G and H categories. A 20% tax was proposed for residential quarters of
government companies, autonomous bodies, statutory, etc against the existing 15%

“Similarly, we have proposed new taxes, such as education cess, betterment and professional tax,
some of which are already implemented in other states,” said Anand.

Till November 5, EDMC had collected Rs 112 crore as property tax against a total target of Rs
350 crore. Last year, Rs 209 crore was collected. “We are also emphasising on bringing more
properties under the tax net. While UPIC numbers have been issued to 7 lakh dwelling units, we
are assessing people liable to pay tax with the help of the councillors. As of now, we have 2.5
lakh regular taxpayers. Besides, 1.9 lakh new people have registered on the property tax portal,”
said the commissioner.

For combating dust pollution due to illegal dumping of construction and demolition (C&D) waste,
EDMC has issued an order for direct disposal/transportation of malba from all construction sites
to the C&D waste processing plant at Shastri Park.

“While we have reduced the number of sites (from 61 to 17) for dumping waste in small
quantities, there is a plan to start online services for collecting waste directly from properties at
minimal charges,” Anand said.

To get better rankings in Swachh Survekshan 2022, EDMC would be giving maintenance of
public toilets (50 to begin with), especially those meant for women, on a PPP basis to private
organisations. Faecal sludge management would be done at selected places and the civic body
would apply for ODF++ certificate.

“EDMC will provide a subsidy of Rs 25,000 or 25% of the cost of the machine, whichever is less,
to bulk waste generators for processing their waste at source,” said the commissioner.
Arrangements for e-waste disposal, scrap collection from houses and developing a technology
park at New Jafrabad for treating floating material in drains have also been made.

____________________________________________________________________________________