Builders asking for support of RBI to deal with Covid second wave

Builders have urged the Reserve Bank of India (RBI) to consider a loan restructuring, a moratorium on interest payments, and extra liquidity support to the real estate sector. This comes after RBI Governor Shaktikanta Das announced on Wednesday a covid relief package for individuals, small businesses, and MSMEs.

The RBI Governor has mentioned a number of measures and arrangements in his statements. Such as the second round of loan restructuring and other relief measures as well as the term liquidity facility of about Rs 50,000 crore for healthcare and SLTRO for Small Finance Banks. The central bank also recognized the difficulties faced by individuals, small businesses, and small and medium-sized enterprises. Due to downsizing, and provided resolution 2.0 measures to restructure loans to small borrowers of up to Rs 25 crore.

CREDAI encouraged and hoped that similar measures would be announced in the coming days. To address the problems of large companies and labor-intensive sectors such as real estate.

It is hope that RBI consider real estate sector as well!

This was stated by the President of CREDAI Harsh Vardhan Patodia. We are convinced that the measures that make accounts classified as SMA 1 and SMA 2 also suitable for restructuring. An interest rate moratorium together with additional liquidity under ECLGS 3.0 transferred to real estate projects will help in reviving the economy and create jobs that are most important to compensate the influence of the second wave.

This was stated by the President of NAREDCO, Niranjan Hiranandani. The RBI governor announced a number of plans. Including the second round of loan restructuring and other relief measures, steps in the right direction. It is hoped that he will also look at industries as real estate that need similar support in these difficult times. We expect consistent, calibrated, and timely action across industries such as real estate.

Samantak Das, chief economist and head of Research & REIS, JLL India said. Apart from individual borrowers, this will be of great help to SMEs associated with the real estate sector, especially resource providers for this sector.

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UP-RERA working with state government to end flats registration deadlock

ICICI, SBI, LIC, HDFC, other life insurers set to invest in InvITs, REITs

UP-RERA working with state government to end flats registration deadlock

up-rera-working-with-state-government-to-end-flats-registration-deadlock

Thousands of home buyers are waiting to register their apartments due to a deadlock because of the dues between developers and authorities. To put an end to the ongoing registration delays in Noida and Greater Noida, the UP-RERA has requested guidance and directions from the state government.

It is estimated that more than 50,000 home buyers are still waiting to register their apartments in the area. Due to the lack of a payment plan from local authorities, district developers are unable to pay their pending dues and the registration of many finished apartments has been halted for several months.

What RERA Officials said?

Balvinder Kumar, a member of, UP-RERA said. This is a serious problem in Gautam Budh Nagar area. The problem is increasing and several builders have to pay money to the local authorities. Builders aren’t getting OC and CC and registration fails because of this. If builders have four mandatory certificates, we will give possession of flat to the buyers. Under this regulation, possession is granted, but buyers can not search their apartments. We are trying to solve this issue and have also asked the state government to intervene in this issue. We have also requested some instructions from the state government so that buyers can register their apartments as soon as possible.

What do Builders / Developers said?

Developers believe that a higher interest rate is calculated and there is a delay in the registration of flats due to the lack of clear instructions or guidelines.

RK Arora, president, NAREDCO UP, said. Noida authorities, GNIDA, YEIDA do not allow registration due to outstanding dues for calculating higher interest rates. The authorities have not yet complied with the SC order to reduce interest rates. Completion at the authorities level is also pending. This is a serious issue because registration is delayed.

Unable to sell my flat!

Some buyers also postpone the registrations as they have spent most of their liquidity when taking over their apartments. Experts say, so they had taken some time to be able to manage the registration fee.

This year, in January, due to the long delay, authority of Noida allowed private developers to pay their lease rent in installments. This decision helped an estimated 30,000 home buyers awaiting registration of their properties.

Nitesh Sharma, a buyer from Greater Noida West said. “I received my apartment 8-9 months ago but am still waiting to register my apartment. But now I am planning to move to a larger area by selling this flat. But due to the long delay in the registration process, I can not sell this property. I hope this deadlock ends and we can register our property so we can sell or improve our units.”

Prasoon Chauhan, founder & CEO, BlackOpal Group, said. The liquidity problem in the real estate sector affects the proper functioning as we have witnessed the redirection of money raised for registration to other activities. Buyers also move into their homes and delay huge registration costs. However, we recommended that you complete all required registration documents before shifting to your apartment.

UP-RERA working with state government

UP-RERA is now working with the state government to find a solution to this problem so that the finished floors get registered. And the deadlock issue between authorities and developers is resolved. Many buyers are unable to sell their properties due to lack of registration and some are forced to sell such properties at very low market prices.

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ICICI, SBI, LIC, HDFC, other life insurers set to invest in InvITs, REITs

Flats in Haryana sold on basis of carpet area only!

ICICI, SBI, LIC, HDFC, other life insurers set to invest in InvITs, REITs

icici-sbi-lic-hdfc-other-life-insurers-set-to-invest-in-invits-reits

This decision of IRDAI will lead to less dependence on banks. And give InvITs, REITs access to more flexible debt financing options. Currently, InvIT / REIT is heavily dependent on banks as the sole source of debt financing.

Major life insurance companies, including LIC of India, HDFC Life, ICICI Life, and SBI Life, are willing to invest in bonds published by Infrastructure Investment Trusts (InVIT). This will provide much-needed long-term financing to the needy lending sector that lends further for the construction of roads, towers, shopping malls, bridges, and other infrastructure.

Last week, India’s Insurance Development and Regulatory Authority (IRDA) approved insurance companies to invest in InvITs and Real Estate Investment Trusts (REITs).

According to fund managers, bonds issued by InvIT or REIT are likely to offer a minimum of 100 basis points more than the vanilla corporate bonds. The REITs or InvITs formed using a pool of assets that are pooled into a special purpose vehicle (SPV) that can sell bonds to increase debt up to 50 percent of net worth.

Initially, the insurance companies can purchase triple-A rated securities, such as NHAI and PowerGrid, with maturities ranging from 5 to 10 years. As the market matures, investors are likely to buy long-term bonds. The insurance company expected to earn 170 basis points more than government bonds with a similar maturity.

Insurer will not invest more than 10% of outstanding debts

IRDAI, on April 22, announced a circular stating that debt securities classified as ‘AA’ and above would be part of the ‘Approved Investment’ category for insurance companies. No insurance company is authorized to invest more than 10% of outstanding debt instruments in a single InvIT / REIT issue.

According to a fund manager, the investment risk is diversified. As InVIT / REIT invests in several SPVs that have full assets and different sources of cash. If there is a hurdle in the cash flow of a single project, others fill the gap by allowing interest payments on bonds.

Experts opinion-

Mukesh Gupta, managing director at LIC of India said, we are definitely considering investment opportunities for InvIT and REIT. Our country needs long-term financing in the sector of infrastructure. By nature it is a long-term investment, therefore, insurance can fill this gap. InvITs and REITs offer a good investment opportunity with very less project implementation risks.

Shivam Bajaj, director at Bajaj Consultants said: This decision of IRDAI will lead to less dependence on banks. And give InvIT / REIT access to more flexible debt financing options. Currently, InvIT / REIT is heavily dependent on banks as the sole source of debt financing. No investments are risk-free, nor are trusts. There is no accumulation of cash reserves to be used in times of stress. As 90% of net cash receivables must be distributed among the unitholders, not the bondholders.

Arun Srinivasan, head of fixed income, ICICI Prudential Life Insurance said: Insurance is a long-term business, making it ideal for investing in long-term infrastructure projects. This will enable this sector to receive more long-term financing from insurance companies. The spreads offered by these structures provide an attractive investment scheme while improving overall portfolio performance in a risk-adjusted manner.

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6,000 flats in Jaypee Wish Town to be delivered by next year

Effect of COVID-19 second wave on the real estate sector!

Flats in Haryana only be sold on basis of carpet area: HRERA

HRERA, the practice of selling property on the basis of the super area is misleading, controversial, and confusing. Generally, property sold on the basis of super area increases complexity and ultimately results in avoidable litigations. 

CHANDIGARH: On Tuesday, the Haryana Real Estate Regulatory Authority issued rules and regulations for the sale of an apartment. According to this rule the sale of flat in any real estate project will be based solely on carpet area only. The Gurugram-based regulator warned that a criminal case can be initiated against a builder or real estate agent who violated these instructions.

Sales on Super Area will be an illegal offence now!

K.K. Khandelwal, HRERA Chairman said, sales on the super area considered by the developer are fraudulent and unfair business practices. Conveyance deeds should be prepared only on the basis of carpet area. The sale of an apartment or a house takes place solely on the basis of carpet area. So it is illegal to sell property on the basis of super areas or any other basis.

Properties in residential projects are not correctly described with reference to the super area without specific details and the components included in the super area. The practice of selling property on the basis of the super area is misleading, controversial, and confusing. Generally, property sold on the basis of super area increases complexity and ultimately results into in-avoidable litigation’s. 

This regulation is drawn up by the authorities to ensure the sale of land, apartment, or the sale of residential and commercial real estate projects in an efficient and transparent manner. Also, this will protect the interests and improve the confidence of buyers in real estate. 

Considering that before the Real Estate (Regulation and Development) Act 2016 came into action, there was no legal description of the term “carpet”. Now the HRERA law provides a specific definition of the carpet area, which now removes the uncertainty and confusion in this regard.

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6,000 flats in Jaypee Wish Town to be delivered by next year

Effect of COVID-19 second wave on the real estate sector!

6,000 flats in Jaypee Wish Town to be delivered by next year

6000-flats-in-jaypee-wish-town-to-be-delivered-by-next-year

By 2022, about 6,000 apartments in Jaypee Wish Town will be handed over to buyers. Some of them will be newly built. Others have already been completed but require some renovations work before the keys are delivered, according to resolution professional Anuj Jain.

The Supreme Court has reflected about 20,000 apartments in the list of unfinished categories. While the state’s previous NBCC estimates showed about 17,500 unfinished apartments in Wish Town. The resolution specialist has now updated the unfinished floor number to 19,500. 

According to the resolution professionalist Anuj Jain, they originally had 28,000 apartments to complete. Out of which, they have delivered 8,500 already, and now they have to complete 19,500 flats. Of the 8,500 apartments, some still leftover with finishing work including fittings and flooring. So, “We complete them and also finish the construction of some other flats as well, and together we have set a goal of handing in more than 5000 flats by the year 2022. Also, we would have already built at least 4,000 floors, our work had not stopped last year.” Meanwhile, construction work on the Wish Town site has started and labor mobilization continues.

Suraksha and NBCC, two resolution applicants in the JIL resolution case, have submitted their proposal to the Creditor’s Committee (COC). Lenders responded to new offers and asked bidders to make more favorable offers on “land parcels” to pay off the debt. On 17 April, parties from both sides demanded a one-week deadline to submit the second revised proposal.

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Effect of COVID-19 second wave on the real estate sector!

MahaRERA order developers to disclose sold, booked inventory

Effect of COVID-19 second wave on the real estate sector!

effect-of-covid-19-second-wave-on-the-real-estate-sector

The country’s recent rise in COVID-19 cases and fears of another wave could hamper the recovery of real estate seen in the last six months. Also, the Maharashtra government’s refusal to extend the low-stamp duty exemption could potentially affect the mood of home buyers and investors.

The extraordinary challenges associated with another wave of Covid-19 infection in the country are adversely affecting expansion plans for companies that postpone their office rental decisions. Ultimately the second wave of pandemic has disrupted the (CRE) commercial real estate sector.

The end of the stamp duty exemption and the introduction of a state curfew/lockdown situation due to the second wave of the pandemic could have a negative impact on home sales. This has interrupted construction work and a sharp drop in the number of customer visits on sites for project finalization.

A report from JLL India-

According to Q1 JLL’s 2021 first-quarter office report, “The momentum of leasing in the coming quarters will largely depend on how long it takes to end the second wave of Covid cases.” Samantak Das, Head of research, JLL India said- Rising concerns about an increase in the number of Covid cases in the second half of March has further pushed residents to postpone their property buying decisions again. 

Impact of COVID second wave on Commercial Real Estate sector-

The second wave of Pandemic or increased cases of COVID-19 impacted the commercial real estate sector in a serious manner. Government decisions like imposing a curfew and overnight closures are likely to affect supply chains. India Ratings and Research (Ind-Ra) stated in a report that Covid poses a mild challenge for supply chains across different real estate sectors.

This is also reflected in the increase in vacancy for Class A office space, which increased for the fifth consecutive quarter in the first quarter (Q1) of 2021. The vacancy rate increased from 12.8% in March 2020 to about 14.8% on 14 March 2021.

In the first quarter of 2021, net absorption of the office space market fell by 37% in Q1 2021 at 5.52 million square feet (MSF). Accordingly, net leasing or rent decreased by 33% from 8.34 MSF in the (Q4) fourth quarter of 2020. Only the markets of Bangalore and Delhi NCR experience an increase in net absorption in the (Q1) first quarter of 2021 compared to the (Q4) fourth quarter of 2020.

As the vaccination campaign takes off and occupiers remain cautiously optimistic. The 2021 year is expected to see an increase of about 38 MSF of new completions. While net absorption is likely to be around 30 MSF with a slight downward bias. This will be in line with the average annual net absorption observed in 2016-2018.

Despite the emergence of work from home concepts. Tenants with a sound financial profile in Class A office space continued to fulfill their existing leases and obligations on time without any impact on leases according to the analysis. 

Impact on Residential sector

According to a latest analysis by CARE Ratings, the second wave could hamper the recovery the sector has experienced over the past six months. 

The demand for affordable housing and medium-sized housing likely to recover more quickly, thanks to a government-funded subsidy scheme. The government has extended the period of exemptions. And benefits of buying affordable housing by another year i.e, 31 March 2022. The demand in smaller cities is likely to be better as the work from home trend has encouraged people to buy houses in their hometowns.

In 2021, housing demand is likely to return to the level in 2019, but only if the impact of the second wave does not last. Because if the second wave continues for an extended period of time, it could affect jobs and ultimately impact the residential sector.

Experts Opinion-

Dr. Niranjan Hiranandani, Managing Director of Hiranandani Group said. Study and work from home is certainly to stay longer, so some families may find it wise to move into a larger home with flexi-interiors. The exemption in the stamp duty rate has certainly played a vital role in improving sales. However, it is not the only positive factor affecting sales until September 2020 and before the end of the scheme. Other factors are still present, for example, home loan rates are at historically low levels; property developers are offering great deals. These factors also play an important role in positively impacting homebuyers’ confidence.

Anil Pharande, chairman of Pharande Spaces said. Real estate will definitely be impacted as the number of site visits will decrease. On the other hand, people during this pandemic are more eager to own their homes. As a result, online property queries or searches are rising. Developers will easily close the sale as soon as the situation stabilizes. There will be a 10-15% drop in sales, but it will even out again. Property prices are at an all-time lower level in 10 years, and interest rates on home loans are also attractive. Further, developers will continue to make adjustments to meet this demand.

Anuj Puri, chairman of Anarock Property Consultants, said, incentives such as a reduction in stamp duty are for a limited period. And the state’s lowest and best home loan rates (6.70%) have not been continued beyond 31 March 2021. In general, these factors, together with the partial lockdown will affect the total home sales in the future.

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MahaRERA order developers to disclose sold, booked inventory

Noida Police attaches 56 illegally constructed flats in Shahberi

MahaRERA order developers to disclose sold, booked inventory

maharera-order-developers-to-disclose-sold-booked-inventory

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

AURANGABAD: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all developers to unveil their inventory. This includes the sale of apartments, houses, land, booked flats, as well as other construction details. This database is important because it will provide greater clarity to buyers and prevents more than one transaction. 

Information in proper format-

MahaRERA asked developers to provide details in the prescribed format. Referring to the permissible provisions of the Real Estate (Regulation and Development) Act 2016, which has been in force since May 2017.

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

Currently the CREDAI Maharashtra has 3,000 active members in 59 cities across the state.

According to RERA, any aggrieved buyer can file a complaint with the competent authority. In relation to a real estate project that has been registered for violating any laws or rules and regulations related to RERA. The authority can put in place a complaint access mechanism to deal with such complaints quickly. Anyone who feels dissatisfied by an instruction, decision, or order from MahaRERA or a judicial officer. He/She can appeal to the appellate court and then to a higher court.

CREDAI welcomed MahaRERA decision-

Confederation of Real Estate Developers Association of India (CREDAI), Maharashtra, has appreciated this decision of the MahaRERA. Officials from CREDAI said this decision aimed at corrupt developers who are not registered with the association’s offices in the state.

Sunil Furde, CREDAI Maharashtra president said- “We appreciate and welcome the new MahaRERA order, which seems to be aimed at eliminating illegal construction, which is mainly seen in small towns.

Now the developers will disclose or announce the number of sold units and upload the details to the MahaRERA website in accordance with legal requirements. CREDAI correctly accepts the MahaRERA circular as defined by developers who do ethical business and comply with the law.

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UP-RERA postpone physical hearing of complaints

DTCP launches online portals to buy affordable home in Gurugram

UP-RERA postpone physical hearing of complaints

up-rera-postpone-physical-hearing-of-complaints

Delhi/NCR:- As the COVID-19 pandemic cases increase across the country, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has decided to postpone the physical appeal hearing with effect from May 1, 2021.

Due to the many physical hearing requests from developers and buyers, the authority had previously decided to allow the physical hearing to the concerned parties. Provided that the Covid-19 protocol will be followed strictly.

But the authority is now handling complaints virtually through the e-court or electronic court system as instructed by the Government of India and the state government.

The virtual hearing will be continued in its current form. Further decisions will be made in the future to allow the parties to have a physical hearing. Depending on the pandemic situation and the direction by the state and central government.

Authorities recently postponed the National Lok Adalat, which was to be held in Lucknow and Greater Noida on April 10, 2021.

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BRERA penalises Green Vatika, Arunendra Developers & Shiba Welcome

Noida Police attaches 56 illegally constructed flats in Shahberi

DTCP launches online portals to buy affordable home in Gurugram

dtcp-launched-online-portals-to-buy-affordable-home-in-gurugram

Buyers who won’t get the homes have to wait months for a refund of the fee paid during form submission. But now refunds will be processed within two to three days with the help of online system. 

Department of Town and Country Planning (DTCP) has finally launched an online portal to provide transparency throughout the buying process of affordable homes. From application to the allocation of affordable housing all the process will be online. The DTCP has taken this step after receiving numerous complaints from home buyers. The developers were charging premiums from home buyers for the allocation of flats. 

Procedures like applying for an affordable housing unit, draw of lots, payment of booking fee, refund and allocation are now completely online. 

Reason for launching the online portal-

According to the rules, a developer starting an affordable housing project issues application forms to the potential buyers. The buyer can get these application forms from the developer office and some government agencies, including DTCP and Haryana Shahari Vikas Pradhikaran.

Further the applicant needs to submit the form to the developer with a 5% of unit cost. However, it is alleged that many developers charge premium from buyers to confirm their allotment, which is a total violation of the rules.

Another big problem with the manual system is the slow reimbursement process. Buyers who won’t get the homes have to wait months for a refund of the fee paid during form submission (5% of the fixed costs). But now refunds will be processed within two to three days with the help of an online system. 

Benefits of online draw-

In the case of online draws, the developer will not be able to charge premium from the applicants. Applicants receive a message on their mobile phone as soon as they are selected in the lottery. Further they can also pay rest of the money through online medium. 

There are currently 91 affordable residential projects in various construction phases in Gurgaon. According to the applicable rules, the allotments of affordable housing projects can be completed through a draw of lots only. Currently there is no change in the price of affordable housing projects. And the government has set a fixed price for the units in affordable residential projects.

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How the dream of “Affordable Homes” turned into a nightmare!

Noida Police attaches 56 illegally constructed flats in Shahberi

How the dream of “Affordable Homes” turned into a nightmare!

how-the-dream-of-affordable-homes-turned-into-a-nightmare

New Delhi: When the National Consumer Dispute Redressal Commission (NCDRC) made a unique decision sentencing the CEO and directors of Parsvnath Developers to three years in prison for ignoring his 2019 reimbursement order. To home buyers, it looked like the end of a long, dark tunnel. Dozens of middle-class families have been in trouble since 2007.

Refund amount is to be made with an interest rate of 12% per year from the date of payment, which is equivalent to Rs 1.55 crore rupees per buyer. However, the company appealed to the Supreme Court, which upheld the NCDRC’s decision and gave a 3 months of relaxation, starting from 9th February. 

The apartments in Parsvnath Privilege, a residential group with a proximity to the future Jewar International Airport, were booked by buyers between 2007 and 2009 at a price of 50 to 65 lakh. Today, 12 years after the last reservation, there are only 3 of the 20 residential towers. Of the promised 958 flats, around 126 have been completed and ready for handover. The company is completely silent about the remaining 832 unfinished apartments.

More than 1 lakh apartments are still pending!

The Greater Noida Industrial Development Authority (GNIDA) identified more than 100 builders who have been classified as “defaulters”. Together they owe about Rs 6,000 crore to the authority.

The list of defaulters is big and consists names of well known developers like Amrapali, which owes GNIDA more than Rs 2,700 crore. Unitech owes about Rs 410 crore and Parsvnath owes about Rs 113 crores. The names of other big developers like Panchsheel and Supertech are also in the list.

In 2019, Indian Express reported that the promised 1.06 lakh apartments in Noida and Greater Noida are still pending, and haven’t been transferred to the owners. Around 1.03 lakh apartments in the Greater Noida area didn’t get the completion certificates. 

Jaypee Infratech Limited (JIL) has several pending projects and is yet to deliver about 17,756 of 30,000 apartments in the Wish Town project. Recently, several dissatisfied home buyers gathered in Jantar Mantar, New Delhi, to ask Prime Minister Narendra Modi to intervene in the JIL case in order to find a sensible solution.

According to some well-known real estate agents, in today’s scenario, builders don’t have enough capital to complete their projects. 

A report from property consultant JLL India 

In January 2020 JLL India in a report stated, in Delhi-NCR, Mumbai, Chennai, Kolkata, Benagluru, Hyderabad and Pune, around 2,18,257 residential units worth Rs 1,55,803 crore were delayed in different phases of construction. The Delhi-NCR had the largest insolvent companies or defaulters, accounting for about 70 percent in terms of volume and about 55 percent in terms of value. 

Meanwhile, Parsvnath has been undergoing losses since 2016-17. According to one disappointed home buyer, the company does not seem in a hurry to give the compensation money in order to fulfill NCDRC order.

Rakesh Dhir, a retired army officer, who was one of the six petitioners said. “All my savings have been finished and the company has to pay the compensation till 9 May”. Rakesh Dhir paid EMI for an apartment that he should have owned ten years ago.

Families that have taken possession also suffer different problems. A year ago 12 families had shifted in Parsvnath tower and the developer had given them unfurnished apartments. The buyers not only completed the tiling work on their own cost, but also paid an additional Rs 10 lakh for organizing security and maintenance. 

NCDRC strict order to Parsvnath!

Sukham Ahluwalia, homebuyer representative at the NCDRC, was pleased with the petitioner’s progress. He said- “It’s the first time that NCDRC has issued a strict order to Parsvnath.” The NCDRC had been trying to settle the case patiently. But the company denies to accept any terms and conditions. This forced the commission to issue a strict order.

In defense of the company, Manoranjan Sharma, Parsvnath’s lawyer said:- “The 3 month period or deadline has not completed yet.” When asked if the remaining apartments will be completed in the next few months, Sharma said, “This is not the subject the Supreme Court is considering. The company will give the compensation or return the money within the time limit issued by the court.”

It is clear that Parsvnath will comply with the NCDRC’s compensation order upheld by the Supreme Court.

John Lang LaSalle (JLL) in a report states that in the first quarter of 2021, home sales in seven cities, including Delhi-NCR, recovered by about 90% from pre-COVID levels. Out of the seven cities, Mumbai shows the highest sales figure, around 23% of new real estate sales in the first quarter of 2021, Delhi-NCR accounted for 21%. However, it is expected that figures may change till the second quarter of 2021.

Samantak Das, chief economist and head of research at JLL said.  “The strong sales growth shows clear signs of demand and renewed consumer confidence in the market.”

Why Greater Noida have more number of defaulters?

So, what is the actual reason behind these pending projects and why there are so many defaulters in the NCR region, especially in Greater Noida? Some local real estate agents and brokers have explained the cause behind this. Most of them believe that builders are spending beyond their capacity. 

Over-Investing

Satyapal Verma, an expert in the Greater Noida real estate market, said, “The main issue is that one can easily lease a land in Noida-Greater Noida by paying just 10 percent of the whole land value. Further rest of the money can be paid through EMI. Therefore, builders here started investing too much and also launched so many projects at the same period of time. Soon they were unable to pay their EMI on time and ran out of working capital. 

Using bank money to buy more lands-

Another real estate expert said, “When Greater Noida came up, housing projects were advertised as ‘affordable’. At Rs 4,000 to 5,000 per sqft (range was actually “affordable” given the prices prevailing in the overheated Delhi NCR market). In general, these companies easily obtained construction loans from banks on favorable terms and without much difficulty. 

If they were careful with their finances, developers can easily benefit from the cost arbitrage and sell homes at the advertised affordable prices.

In this case, the cost arbitrage arises due to the enormous price advantage that the Greater Noida real estate market offers over rest of the NCR region. It didn’t work because a lot of these developers used the bank’s money to buy more new lands without completing the projects they had taken originally.

Soon developers faced liquidity crunch and the overheated market began to cool. Ultimately results in lower property prices and lower builder’s profits. As a result the trend of delayed possession continued to grow and the home buyers did not get their promised dream homes or apartments.

According to people’s opinions, only a government-sponsored rescue package can make Greater Noida’s ongoing projects work. Also Parsvnath’s decision showed that the country’s courts in no mood to tolerate uncooperative developers.

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Best area to buy flat in Noida 2021?

BRERA penalises Green Vatika, Arunendra Developers & Shiba Welcome

PATNA: The Bihar Real Estate Regulatory Authority (BRERA) has issued strict orders to three private developers for violating RERA rules. The BRERA came into action after receiving more than a dozen of homebuyers written complaints. According to the officials the real estate companies, Arunendra Developers Pvt Ltd, Shiba Welcome Pvt Ltd, and Green Vatika Homes Pvt Ltd were flouting the RERA rules. As a result, strict action was taken against these companies last week.

Buyers Opinion-

Ravindra Kumar Sinha, a home buyer, said. “We paid 80% to 90% of the total cost of our apartment, but the developer didn’t complete construction on time. We believe that the developer has three or four projects underway and has invested our money in other projects.

Statements from BRERA officials- 

Home buyers filed complaints against these builders and the violation was discovered during the hearing. Considering this, the authority has frozen bank accounts of the company executives including directors. 

In addition, the authorities have asked them to provide all the details of companies including all financial transactions, investments and expenses after a certain project launched in Bihar. Also they are not allowed to sell any residential apartments till the next order. 

Bihar RERA has frozen bank accounts of the directors of Arunendra builders including Chandan Kumar, Pankaj Kumar, and Upendra Mandal. The authority has also imposed a ban on the sale of residential units of its projects at Phulwari Sharif, Danapur-1 enclave and other areas of Bihar.

Likewise, the authority has restricted or frozen the bank accounts of the directors of Shiba Welcome Builders including  Amina Rashid and Khalid Rashid. The authority has also banned the sale of residential units of Rajeshwar Apartment Project. 

The next hearing in the case of Arunendra developers and Green Vatika Homes scheduled for April 16 and Shiba Welcome Builders hearing scheduled on May 10th.

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Maharashtra: Slot-booking mandatory for property registration in April

Noida Police attaches 56 illegally constructed flats in Shahberi

Maharashtra: Slot-booking mandatory for property registration in April

maharashtra-slot-booking-mandatory-for-property-registration-in-april

PUNE:- Citizens planning to register their property this month must have to book or reserve time slots. These time slots should be booked at the relevant registry office using the e-step-in facility. In accordance with the strict restrictions on passenger traffic under the Maharashtra government’s order to prevent the spreading of Covid-19.

Slot reservation ensures that each of the 519 government offices will do a maximum of 20-30 registrations per day, indicating a sharp drop in government revenue in the first month of the new fiscal year. These 519 offices will operate Monday to Friday, from 10:00 am to 6:00pm. And the offices remain closed on weekends following weekend curfew orders. 

A senior registration officer said. “Few home buyers can meet such restrictions after booking online space, which will affect revenue collection during the beginning of the new fiscal”.

Same process for those who have paid stamp duty-

A senior officer from the registration department said, home buyers who paid stamp duty prior to March and those who are required to pay and register their property this month, they must follow the same procedure for reserving slots using the e-step-in facility. They have to visit the State Property Registration website to reserve the time slots and receive confirmation of the assigned time slot.

Shravan Hardikar, inspector-general of registration and controller of stamps, said, the notification of reserved slots must be shown during the entrance to the registration office. Only those who are required to be present during the registration process are allowed in the office to ensure the least possible crowd at the registration authorities. He also urged developers to electronically register new properties in their own offices.

Credai officials stressed quitting the stamp duty waiver (only women get a 1% exemption) and the new restrictions will certainly affect the registration process and the overall real estate business in the state.

Shantilal Kataria, National vice-president of Credai, said, by March the government was setting high records and the stamp duty exemption gave the property market a boost. We urge the government to reconsider our demand to continue the stamp duty waiver in the current situation. If the state government declares that the restrictions should not impact the economy, they must take appropriate action.

Also read:-

5% Stamp duty on property registrations resumed from 1 April

Goa CM cuts infrastructure tax by 30% to revive real estate

Noida Police attaches 56 illegally constructed flats in Shahberi

Gautam Buddh Nagar police on Thursday said, they had attached 56 apartments that were illegally built by a private company. The flats cost an estimated Rs 22.40 in Shahberi, Greater Noida. According to the officials, the lawsuit against Satyam Real Builders Private Limited follows a court order in a case filed against the group at Bisrakh Police Station in 2019.

The case filed against a group including Harish, Rohit, and Vikas Chaudhary for attachment of their property under section 14 of the Gangsters Act. 

Flats built on agricultural land

In a court order, the district police seized 56 of these apartments. These apartments or flats valued at Rs 22.40 crore. according to a police spokesperson. 

The defendants used agricultural land in Shahberi for the illegal construction of multi-storey buildings and housing. They started construction without getting approval for the land use pattern changed. Also, the construction carried out without the approval of floor plan or certification from the local authorities. These apartments fraudulently sold to gullible buyers and the group illegally made money from such sales.

The case at Bisrakh police station was filed under various sections including section 420 (cheating), section 188 (disobeying government order). 471, 467, and 468 (related to creating false documents) of the Indian Penal Code, and under the Gangsters Act, among others. 

According to officials. The Gautam Buddh Nagar police have currently identified illegal property belonging to gangsters and mafia worth Rs 130 crore.

Also read:-

Best area to buy flat in Noida 2021

5% Stamp duty on property registrations resumed from 1 April

Which are the best area to buy flat in Noida 2021?

which-are-the-best-area-to-buy-flat-in-noida-2021

Looking for the best area to buy flat in Noida? There are various residential sectors in Noida, and often people face a dilemma when choosing the best one. In this article, we have described the 6 best localities that are ideal for living in Noida.

Noida is considered as one of the most affordable areas in NCR for home purchase. The city is experiencing rapid real estate development and offers opportunities for both home buyers and investors. From the metro to world-class physical and social infrastructure, Noida is currently one of the favorite destinations for home buyers. 

Affordable housing prices and good connectivity have been key factors in the popular demand of Noida and Greater Noida in recent years. Accessibility and cost-effectiveness in homes supply are also responsible for the popular demand for flats. Getting to Noida has always been a good decision for both investors and home buyers. Here are the 6 best area or localities to buy flat in Noida.

List of top or best area to buy flat in Noida-

1- Noida Sector 137

Noida-sector-137

Sector 137 is a well-planned residential sector in Noida and is one of the most popular localities for various reasons. Here, several residential projects have emerged that offer spacious homes at a reasonable price. Most of the residents here are professionals working in and around Noida. It is adjacent to popular localities like sectors 142, 141, 135, and 136. 

Connectivity- Sector 137 is located next to the NGN Expressway providing good connectivity to other areas of Delhi. It is located approx.12 km from the Mahamaya Flyover. It also has connectivity to Aqua Line metro, proximity to the Noida-Greater-Noida Expressway, new facilities with world-class amenities, and excellent infrastructure. Sector 137 is well linked by the FNG Expressway, which connects the city with Faridabad, Noida, and Gurgaon.

Property price- The price of an apartment or flat in Noida sector 137 starts from Rs 3,800/sq ft and goes upto Rs 5,910 per sq ft. The average price is approximately Rs 4,800/sq ft. Check out:- flats for sale in noida sector 137

2- Sector 150

Located at the intersection of Yamuna Expressway and Noida-Greater Noida Expressway. The area is witnessing massive property development and has become one of the best area to buy flat in Noida. Several major real estate brands are launching their projects in the area. Sector 150 is about 9 Km from Pari Chowk.

Due to its strategic location and presence of prominent and reliable developers, sector 150 has become a great real estate investment hotspot. Presence of reliable developers and strategic location makes it an ideal place for real estate investment.

Connectivity- Sector 150 is connected to Noida and then to Delhi via Noida Expressway and Greater Noida via Yamuna Expressway. The nearest metro station from here is Sector 148 which lies on the Aqua Line of Noida Metro. It has proximity to various well-known IT parks like Knowledge Park, Stellar Business Park, Unitech Infospace, and other industrial facilities. 

Property Price- The price of an apartment or flat in Noida sector 150 starts from Rs 4,900/sq ft and goes upto Rs 6,920 per sq ft. The average price is approximately Rs 5,900/sq ft. Check out:- flats for sale in noida sector 150

3-Sector 50

Sector 50 is one of Noida’s elegant areas, where some of the most expensive properties are available for investment. Part of this sector has several multi-storey residential projects that offer apartments in different price ranges. Close to the major commercial markets, sector 50 is one of the best choices for tenants working in Noida Electronic City, thanks to the best infrastructure and greenery. So, it is the best area to buy flat in Noida for people working near the electronic city. 

Connectivity- The area has connectivity to City Center Metro Station and Logix City Center Shopping Mall. Sector 50 has its metro station on the blue line and is well connected to Greater Noida, Ghaziabad, and Gurgaon. The locality has large green areas and the roads are well-developed. Stations like City Center metro station and Golf Course road have proximity to this sector. The famous commercial and institutional sectors like sector 62, 63, 65, Noida expressway, and Film city are 7-10 km away. And can be reachable in 20-30 minutes.  

Property Price- The price of an apartment or flat in sector 50 starts from Rs 5,200/sq ft and goes upto Rs 8,400 per sq ft. The average price is approximately Rs 6,800/sq ft. Check out:- flats for sale in noida sector 50

4- Sector 75

noida-sector-75

With several new units available, sector 75 has become the fast-developing Real Estate Hub. This locality has gained prominence amongst those homebuyers who don’t want to move towards Noida-Greater Noida Expressway. Blueline metro connectivity makes it an attractive area for both home buyers and investors. It also has proximity to several entertainment hubs like Logix City Centre mall, DLF mall of India, and Galleria. 

Connectivity- The area has moderate public transport connectivity and good social and physical infrastructure. Sector 75 has proximity to NH-24 highway, DND Flyover, Yamuna Expressway, and FNG Expressway. Ghaziabad Railway Station and Indira Gandhi International Airport are 15 km and 37 km away from this area. Proximity to several roads and highways makes it the best area to buy flat in Noida. 

The city has a sector 50 metro station that connects it with some of Noida’s largest shopping malls and to the Film City & Sector 18. The newly growing regions of Greater Noida are also easily reachable within 15- 30 minutes from the area.

Property Price- The price of an apartment or flat in sector 75 starts from Rs 4,300/sq ft and goes upto Rs 6,500 per sq ft. The average price is approximately Rs 5,400/sq ft. Check out:- flats for sale in noida sector 75

5- Noida Extension 

noida-extension

It is a growing real estate hotspot surrounded by Ghaziabad and parts of Greater Noida. The area is developing rapidly and is famous for its affordable property prices. A key factor that strongly influences the growth of housing in Noida Extension is its good connectivity with Ghaziabad, Greater Noida, and New Delhi. The area has become a commercial hub thanks to the presence of large companies. This is a well-planned residential complex that provides a comfortable life for the residents. 

All well-known residential developments such as Gaur City, Stellar Jeevan, Nirala Greenshire, and Eco Village 1 and 2, are easily located just 2-3 km away from Kisan Chowk. The locality has several options and a variety of affordable housing options and therefore makes it the best area to buy flat in Noida.

Connectivity- Bisrakh Road, Greater Noida Link Road, and Vikas Marg are the main roads in this locality. In addition, the approved phase 2 of the Noida metro (Sector 71 – Knowledge Park 5) will further boost the connectivity of this locality. It is well connected with several most important business avenues. Within 20-30 minutes you can reach IT parks and office space located in sector 62, 60, 57, 59, 58, etc.  Ecotech II and Ecotech III are important industrial centers located only 10-20 minutes from the Noida Extension.

Property Price- The price of an apartment or flat in Noida Extension starts from Rs 3,200/sq ft and goes upto Rs 4,460 per sq ft. The average price is approximately Rs 3,800/sq ft. Check out:- flats for sale in noida extension

6- Sector 128, Noida Expressway-

Sector 128, strategically located along the Noida Highway, is a large and well-planned sector. It has a designated green area and a large public park. The sector is known for its popular city project, Jaypee Wish Town, which consists of several apartment buildings with excellent facilities. It is the best area to buy flat in Noida for those who want quick connectivity to the expressway. 

Connectivity- The roads that play a major contribution are Sardar Vallabh Bhai Patel Marg and Noida Expressway. These roads connect sector 128 to other sectors. In addition sector 128 well-connected to the DND flyway and Mayur Vihar flyover. It has proximity to IGI airport and Hazrat Nizamuddin railway station. The IGI airport almost 30 km away whereas the Hazrat Nizamuddin railway station can be reached in a half-hour drive. 

Neighboring sectors such as sectors 132, 127, 126, and 125 are important institutional sectors. They have well-known towers like Tech Boulevard, HCL Corporate Campus, Lotus Business Park, Logix Techno Park, Windsor IT Park, and Express Trade Tower. Key business centers, IT parks of Noida Expressway are close to sector 128. 

Property Price- The price of an apartment or flat in sector 128 starts from Rs 4,470/sq ft and goes upto Rs 7,700 per sq ft. The average price is approximately Rs 6,100/sq ft. Check out:- flats for sale in noida sector 128

Conclusion-

Noida’s infrastructure is developing at a rapid pace and regular government control on the metro project will surely improve the city’s overall connectivity. In this article, we have discussed the 6 best area to buy flat in Noida. All the areas described in this article are very popular and have good connectivity. You should always choose a location based on your budget, proximity to the workplace, and lifestyle preferences. The price of flats stated in this article may differ from the actual price. Further if you have any query or doubt, then feel free to contact us!

5% Stamp duty on property registrations resumed from 1 April

5-percent-stamp-duty-on-property-registrations-resumed-from-1-april

Mumbai: On Wednesday, the Maharashtra government decided not to renew the 2% deduction for stamp duty on property registrations from the month of April. The government would restore it’s earlier five percent stamp duty system on real estate registrations from Thursday.

Reason for stamp duty reduction-  

The state government cut stamp duties to two percent between August and December (2020), to stimulate the real estate market, which was down due to COVID-19 and lockdown. In the period from January 1 to March 31 (2021), it was cut by three percent. Stamp duty is one of the three largest sources of revenue for the state government.

Ajit Pawar, Deputy Chief Minister has proposed a 1% extra reduction of stamp duty if the property is acquired in the woman’s name.

At the time of issuing the order, the State Finance Department stated that if the property is acquired in a woman’s name, she cannot sell it for the next 15 years. If she sells it, then one percentage of the amount left will be charged with a huge fine. This means that if a woman buys a property, she must pay a stamp duty of four percent. To buy the same property, a man must pay a stamp duty of 5% from 1st April 2021 onwards.

Also read:-

Goa CM cuts infrastructure tax by 30% to revive real estate

Prestige Estates to aquire Ariisto’s stuck project in Mulund, Mumbai

UP-RERA to issue a show-cause notice to Supertech Realtors

uprera-to-issue-a-show-cause-notice-to-supertech-realtors

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) is about to issue a notice of show-cause to Supertech Realtors. The notice has been issued for the non-compliance to Section 5 (1) of the RERA Act. Under this notice, the developer has to explain why the application for registration of the Golf Country GH01 Phase 1A and Golfland GH01 Phase-1B should be approved and not rejected.

There are a total of 2,454 complaints filed against the developer and its subsidiaries. Of which 1,629 cases were settled and 105 and 1,243 are refund and possession orders. It was noted that home buyers filed a large number of complaints against the developer and also the developer did not comply with many of the authority’s orders.

Supertech has registered 36 projects, but the builder has shown very little interest in completing these unfinished projects. There are up to 20 projects for which the registration period has expired and which have not been completed yet.

Of the 20 projects, five projects registration was not given because the developer did not submit the penalty amount. In 13 projects, the application for registration of the project has not been submitted to the authority.

In September 2020, UP-RERA decided to conduct a forensic audit of Supernova Phase I, II, III and IV of Supertech group. But the promoter did not cooperate with the auditor, which ultimately means violation of the RERA order.  

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Goa CM cuts infrastructure tax by 30% to revive real estate

Gaurs Group to complete 10,964 pending Amrapali units at Rs 2,124 crore

Goa CM cuts infrastructure tax by 30% to revive real estate

goa-cm-cuts-infrastructure-tax-by-30-percent-to-revive-real-estate

PORVORIM– Pramod Savant, Goa CM on Wednesday announced a cut in infrastructure tax. He said that in an attempt to revive real estate, the infrastructure tax levied on the construction sector will be reduced by 30% over a period of six months starting from 1 April 2021.

The CM also proposes to extend the online building plan approval management system for apartment buildings, commercial buildings and industrial buildings.

The TCP department is about to propose different rules and strategies. These rules will help for implementing transferable building rights provisions for the acquisition of much-needed land taxes, public projects and to preserve cultural heritage structures.

Nilesh Salkar, Credai president said:- We are pleased that our appeals to the government received a positive response. The steps outlined by the CM in the budget speech will definitely strengthen the morale of our sector.

Words from CM-

The problem of double taxation in registration fees and stamp duty will also be simplified. This will be beneficial for the housing construction sector and also reduce their financial difficulties. Several major improvements in the functioning of the Planning and Development Authorities will also be introduced. Further, Notary engineers and Notary architects assigned to provide third-party certification for low-risk projects. Certification by these professionals considered valid by TCP for issuing technical approvals and execution orders.

Also read:-

Prestige Estates to aquire Ariisto’s stuck project in Mulund, Mumbai

Maharastra: About 1,000 Cidco plots up for grabs over next 12 months

Prestige Estates to aquire Ariisto’s stuck project in Mulund, Mumbai

prestige-estates-to-aquire-ariistos-stuck-project-in-mulund-Mumbai

Real estate developer Prestige Estates Projects has won the highest bid for the bankrupt and stagnant Ariisto Developer real estate project in the Mulund, suburb of Mumbai.

Under the terms approved by NCLT Mumbai, Prestige will pay around Rs 369 crore to creditors of the project. Along with 8 lakh square foot non-residential space to be built up as part of the project for creditors.

The company’s guaranteed lenders include HDFC, Piramal Capital, and India Infoline. Apart from these, it also has other unsecured lenders and over 500 home buyers.

The total receivables from lenders and other stakeholders, including creditors and operational creditors, amount to Rs 2,500 crore. NCLT acknowledged and started liquidation proceedings over the developer in November 2019.

Venkat K. Narayana, Prestige CEO, confirmed this news, saying the NCLT court in Mumbai announced this decision on Tuesday. The potential revenue from this project expected to be about Rs 10,000 crore with an area of total 7.5 million square feet. We start the first phase of the project in May and the second in December. Out of 32 acres of land, Ariisto Developer has formed a joint venture with a local landlord for development. At the same time, some of the vacant land was acquired by the company alone.

The site land also contained part of the slum, the company carried out part of the project in the form of rehabilitation work approved by the Slum Rehabilitation Authority (SRA).

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Maharastra: About 1,000 Cidco plots up for grabs over next 12 months

SBI, HDFC, Kotak Offer Lowest Home loan Interest Rates

Gaurs Group to complete 10,964 pending Amrapali units at Rs 2,124 crore

gaurs-group-to-complete-10,964-pending-amrapali-units-at-Rs-2,124-crore

Developer Gaurs Group is investing Rs 2,123 crore in three pending Amrapali projects. Gaur Group has taken over these projects from state-owned NBCC.  

The group won contracts for the construction of Amrapali Centurian Park, Verona Heights and Heartbeat City with a total of about 10,900 apartments. These projects carried out by the Gaurs Group wholly owned subsidiary GaursonsHitech Infrastructure Pvt Ltd.

Gaurs Group, which has completed over 50 commercial and residential projects of over 54 million square feet, is currently not implementing any major projects.

NBCC involves in the completion of 23 Amrapali housing projects and the estimated cost of implementing these projects is approx. Rs 8,400 crore. The state-owned company has divided Amrapali’s unfinished projects into three categories, and delivery of apartments is expected to begin soon.

There are more than 10,000 home buyers who will get the possession of their apartments till June 2021. They will have to pay the pending amount of flat in 4 installments of 25% each. The rest of the home buyers can pay in 10 installments at 10% according to the delivery schedule.

Words from Gaurs Group-

The government shifted its focus to the infrastructure segment, and as a group we also decided to diversify our activities. We have no major real estate projects at this time and have sold most of our under construction stock. We are only completing Amrapali projects, and NBCC is responsible for the sales of these flats. 

Since our experience is in real estate, it was natural to choose Amrapali projects. We plan to increase our construction portfolio to about Rs 7,000 in the five years. Gaurs Group have invested in construction for many years, and want to increase presence in the infrastructure area and are ready to take on government projects as well.

We issue a monthly invoice to NBCC depending on the completion of apartments. We cover construction costs through internal fees and bank guarantees. The projects will be completed within 36 months of the allotment of tender.

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UP-RERA cancel Ansal API Project, Penalise Supertech, Mahagun

YEIDA Begins Registry of Residential plots Launched in year 2009

UP-RERA to organise National Lok Adalat on April 10

up-rera-to-organise-national-lok-adalat

Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) under the leadership of U.P state legal services authority is organizing a National Lok Adalat. The Lok Adalat will be organized at Lucknow headquarters of UP-RERA and Greater Noida office on 10 April 2021, to settle the disputes between developers and home buyers.

The Lok Adalat conducted through the internet medium. Only the complaints submitted to the authority under section 31 of the RERA where mutual consent, settlement or request for agreement is possible will be considered.

Current and pending cases also be reviewed by the RERA Conciliation Consultant, where the settlement is possible on the basis of reconciliation agreement. Or where the party has made a request for an agreement will also be considered. 

Anand Shukla, legal advisor to UP-RERA, has been appointed Nodal Officer of the Lok Adalat organization.

Rajesh Kumar Tyagi, UP-RERA Secretary, said.-“Through Lok Adalat, home buyers will have a transparent, easy, quick settlement and solution to their cases. Adalat will consider the same cases where the settlement is possible through reconciliation agreement and cases that are pending for a long time.”

Also read:-

UP-RERA cancel Ansal API Project, Penalise Supertech, Mahagun

YEIDA Begins Registry of Residential plots Launched in year 2009

Kolkata: NKDA starts special camp to help property taxpayers

NKDA-starts-special-camp-to-help-property-taxpayers

The New Town of Kolkata Development Authority (NKDA) has set up a special camp and support service to help more taxpayers in the New Town area. Especially the elderly citizens and those who have problems in assessing, registering, and paying property taxes. 

The Nabadiganta Industrial Municipality Authority (NDITA) has sent letters to all companies in sector V, who have not yet paid their property taxes, asking them to liquidate them by 31 March.

The NDITA and NKDA authorities recently checked the status of property tax collection in Sector V and New Town. Officials said the property tax collection in both towns was lower than the amount collected in the last fiscal year on the same date.

The ongoing Covid pandemic has proven to be one of the main reasons for this, as some IT companies are still operating from home.

A special property tax camp started in New Town last week and runs until March 31. The camp is on the ground floor of the utility building next to Tank No. 3. According to officials, the camp is an extension of the existing camp to help more taxpayers. It will help more people in the assessment, filing and payment of property tax.

The authorities have also introduced a tax assistance helpline number (033-2324-2127). People facing problems while filing the property tax can call on this number. This helpline number operates from Monday to Friday (excluding public holidays). NKDA has also introduced a “Tax Sathis” for the elderly citizens. 

Till March 17, NKDA raised around Rs 31 crore this fiscal year. While it raised around Rs 43 crores in the last fiscal year. NDITA records as per 17th March shows that they have raised around Rs 47 crores in comparison to Rs 65 crores raised last year.

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Guj-RERA fines Devnandan Builder, Shivalik Infraspace, other for violation

Guj-RERA fines Devnandan Builder, Shivalik Infraspace, other for violation

Guj-RERA-fines-devnandan-builder-shivalik-infraspace-other-for-violation

AHMEDABAD: The Gujarat Real Estate Regulatory Authority (Guj RERA) has finally ordered developers to pay fines for violating the rules. One developer was fined for booking and selling properties before registering them with the concerned authority. Another was fined for collecting more than 10% of the property value before signing a sales contract.

Booked apartments before registering

The authorities in the first case imposed a fine of Rs 27.38 lakh on Devnandan Builders Private Limited, for reserving apartments under their Devnandar Parisar-2 scheme in Adalaj. They had booked the apartments before registering it with RERA. The developer gave an explanation that the company applied for registration in 2017, but it was rejected. Further he said, he will submit the project certificate as soon as the CA prepares it. RERA was not satisfied and noted that the developer had sold or reserved 205 units in the project prior to the submission of the project certificate. So, the company was fined approximately Rs 27 lakhs.

Received 10% as advance payment-

In the second case, authorities imposed a fine of Rs 7 lakh on Dwarkadas Pritamani for receiving reserve sums totaling Rs 6.50 crore from 45 buyers and providing apartments in his Ravideep Apartments project.

Under the RERA Act, a developer cannot accept an amount exceeding 10% of the value of an apartment. Land or other real estate as an advance payment before signing the sales contract (AFS).

Shivalik Infraspace LLP

In another case, a review of the project by CA showed that developer Shivalik Infraspace LLP raised more than 10% of the cost of an apartment at Shivalik Sharda Parkview Apartments in Shela.

Based on an explanation, a developer’s representative told the authorities that the company had actually tried to enter into agreements for sale with buyers. But was unable to register agreements because buyers did not respond to reminders. The company also provides evidence of the procedure performed. It also told AFS that it had registered seven of its home-buyers. After taking note of the registrations submitted by the developer, RERA noted that the organizer actually tried for registration of AFS and therefore reduced the penalty amount. But as the rules violated, the authority ordered to pay a fine of Rs 10.50 lakh. 

AFS a Stumbling Block-

Chitrak Shah, MD of Shivalik Infraspace, told the Mirror: “We will file an appeal before the court. The AFS topic has become a stumbling block in the real estate community as many buyers do not want to have such a document. This problem needs to be addressed and developers should not be penalized in such cases. ”

Gihed meet discusses another case in SC

GIHED – CREDAI held an emergency meeting for developers on Friday to inform them of the upcoming SC hearing. On the pending “conditional plan approval” issue for the draft town planning (TP) locality.

According to the developers, approx. 70 percent of the current real estate projects in Ahmedabad and Gujarat comes in the draft TP areas by authorities like AUDA and AMC.

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ORERA Fines Two Realtors for Violations of RERA Act

SBI, HDFC, Kotak Offer Lowest Home loan Interest Rates

UP-RERA cancel Ansal API Project, Penalise Supertech, Mahagun

uprera-revoke-ansal-api-project-penalise-supertech-mahagun

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) imposed a fine under Section-63 of RERA against several developers and builders. The list consists names of well-known developers and others as well. Some of them are Supertech, Mahagun India, Ansal Properties and Infrastructure, and Logix Infrastructure. The fine imposed for the lack of compliance with authority orders.

Fine a totaling Rs 1.24 crore was imposed on these developers. Other developer names include Sare Saamag Realty, T.G.B. Real Estate, Nivas Promoters, Newtech Promoters and Developers, I.V.R. Prime Developers, Logix City Developers, and La Residentia Developers.

The authority ordered these developers to enforce their orders and pay the fine amount within one month, otherwise, the fine will be levied as arrears of revenue from the land.

Show-Cause Notice to Ansal API-

UP-RERA has canceled registration of Ansal API project at Pocket 4, Sector-O, Sushant Golf City. The authority sent a show-cause notice to the developer and reason to revoke the registration of their project in May 2019 for violation of the registration terms and conditions.

After considering the developer’s response, the authority puts a stay on the decision of show-cause notice. For a duration of 4 months subject to the nine conditions described in the mentioned order. The developer did not comply with the order, and the authority on 5 September 2020 ordered the developer to submit a report on compliance with its order.

After considering the response of the Ansal API Promoter dated 14 October 2020 and their oral presentations, the authority immediately decided to withdraw the registration of this project due to the violations of following rules:-

Violations by Ansal API developer-

  1. Irregularities committed during the sale of project units.
  2. The money received from the allottees without getting a sanctioned map of the project and it comes under the illegal trading practice. 
  3. The developer has not done any work in the last 9 years, that is, since 2011.
  4. The developer misuse an amount of Rs 16.03 crore received from the allottees of the project.
  5. The required compliance’s, including the QPR of the project, not presented on the authority website.
  6. They didn’t follow the guidelines of the local authorities regarding complaints from the allottees. 

The authority restricts the developer’s access to the project registration page, which is available on the authority’s website. It also froze the project’s escrow account in HDFC Bank, Hazratganj branch. Further the authority has set up a project monitoring and advisory committee chaired by UP-RERA member Bhanu Pratap Singh to facilitate the remaining project work in accordance with RERA section 8.

UP-RERA has taken this decision to protect the home buyer’s interests and ensure compliance with the provisions of the RERA Act. This is the third project of the Ansal API that has been de registered by the authority.

Hearing Option is available-

UP-RERA also decided to allow the parties a physical hearing option from 1 May 2021, subject to strict compliance with the Covid-19 Protocol, where applicable. The parties not allowed to change the physical hearing option after choosing it.

The Authority reviews complaints virtually through the electronic legal system, taking into account the need to include Covid-19.

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ORERA Fines Two Realtors for Violations of RERA Act

Ghaziabad Development Body asks Residents to vacate Alaknanda Towers

ORERA Fines Two Realtors for Violations of RERA Act

ORERA in its order said that the developer must pay a fine of 20 lakh within two months. Otherwise strict action would be taken in accordance with the law.

BHUBANESWAR: The Odisha Real Estate Regulatory Authority (ORERA) has issued orders imposing a fine of two separate developers of 20 lakh each for breach of various aspects of the Odisha Real Estate Regulation and Development Rules 2017.

Advertising without registration- 

In its one order, ORERA slashes Rs 20 lakh fine on a developer for breach of Section 3 of the Act. This act states that developers may not reserve, offer to reserve, sell or advertise their properties without registering such projects with ORERA. Any violation in this regard carries a fine of up to 10 percent of project costs, the law says.

ORERA has booked the case and said in its current order that the developer applied for online registration in December 2019. For a project in the village of Bhubaneswar at Rudrapur, but without getting permission of registration. They started putting up hoardings and advertising in the city and other parts of the state. In January 2020 they advertised properties online as well.

ORERA in its order said that the developer must pay a fine of 20 lakh within two months of the order, otherwise strict action would be taken in accordance with the law.

Firm did not issue sale agreement-

In its another order, ORERA charged a real estate firm Rs 20 lakh, for failing to issue a sale agreement with a home buyer. The buyer has paid a booking amount of Rs 11 lakhs for a property located near Fire Station Square, Bhubaneswar. ORERA placed this order in response to a complaint by the buyer himself.

Sources said that in December 2017, a buyer reserved the property and paid the reservation amount of Rs 11 lakh, and received an allotment letter. The buyer then requested a sales agreement. After which the developer emailed a document that was not in the correct format. When the buyer objected, the developer refused to listen, after which a complaint was filed.

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Chandigarh Housing Board (CHB) to Auction 110 Residential Properties

chandigarh-housing-board-CHB-to-auction-110-residential-properties

A CHB senior official said the property had been empty for years and deteriorating as well. Since CHB could not auction this property for many years, it was decided to auction this property in stages.

Chandigarh: Council officials have begun the auction process for 110 residential properties. Following the completion of the auction process for 110 residential properties (self-owned properties), the Board of Directors will begin the auction process for 150 commercial properties (leasing) and 11 residential properties (rental) next month.

Auction through E-Tendering-

According to the official, the property will only be put up for auction through e-tendering. CHB recently lowered the reserved price of this property by 9-20%. CHB’s proposal was also recently approved by the Chandigarh administration.

The reserve price was reduced by 10-20% after seeing the low response to CHB’s attempt to put the property for auction last year. These 270 properties are located in sectors 51, 63, 38 (west), 39 and Manimajra. Among the properties, 51 new apartments are being offered at auction, which has been part of the most expensive CHB housing project in the city. In addition, the commercial properties are also situated in Manimajra, Sector 51, 61 and Maloya that will be put up for auction.

A senior official said the property had been empty for years and its condition was also deteriorating. Since CHB could not auction this property for many years, it was decided to auction this property in stages.

Flats Offered at Varied Price Range-

After registration with CHB, interested parties have 10-15 days to apply for the auction.

For the real estate auction, the board has already set the base price of HIG apartment (rent) in sector 39 at Rs 1.05 crore. Likewise, the reserve price for the three-bedroom apartment in sector 63 was set at Rs 86.24 lakh. The price of a two-bedroom apartment in sector 51 is between Rs 80 and 84 lakh respectively. 

The reserve price for a 1 BHK apartment was set at 39.37 lakh and for EWS it was 24.35 lakh in Sector 49. Likewise, the reserve price for a 2 BHK apartment in sector 49 was set to vary from 69.86 lakh to 71.25 lakh. Taking into account the location of the floor.

The base price for a 2 BHK apartment in sector 63 is set at 67.29 lakhs. The base price for HIG (rental) apartments in sector 45-A is set at Rs 1.06 crore. Likewise, the price of a restaurant in Manimajra is also Rs 2.58 crore. The reserve price for a small corner stand (booth) is set at 97 lakhs.

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