Homebuyers should be prepared to raise more money to buy real estate in Gautam Budh Nagar, as the administration may raise circle rates in Noida after a four-year hiatus.
Circle rates in Noida, Greater Noida and other parts of the area have remained largely unchanged since 2017. But this time there is a need to revise them upwards because of three industrial development authorities. The three development authorities Noida, Greater Noida and Yamuna Expressway have increased real estate rates over the course of the last three years. At UP, the government collects 7% of the value of the property as a stamp duty.
In fact, at a recent board meeting during the first fiscal year, the land allotment rates in Noida, Greater Noida and Yamuna Expressway areas have increased by three authorities. The Noida authority raised rates for Phase II industrial and institutional sites. These sites include sectors 80, 81, 83, 84, 85, 87, 138, 140, 154, 155 and 158 by 20%. While GNIDA and YEIDA reported increases of about 4.15% and 5%.
Property value continue to rise
The Greater Noida Authority has increased real estate rates for all categories for two consecutive years. Rates on all types of real estate, except commercial, have now risen in price by at least 20%. Noida authorities revised circle rates in Noida for sectors near Aqua Line and Highways in 2019, but refrained from raising rates for non-industrial and non-institutional property.
YEIDA raised rates in 2016 and 2020 both times by 5%. Again, YEIDA raised rates by 5%. Therefore, the value of real estate in these villages along the Yamuna Expressway, which has not yet been built or acquired, will continue to rise.
Final Decision after Evaluating Market Condition
The three regional magistrates and tehsildars will check the value of the transactions in different places to determine if there is a discrepancy between authority rates and circle rates. And the decision to increase the rates could also lead to an increase in the budget for land acquisition for more public projects carried out in Jewar and Dadri.
District Judge Suhas L.Yu. said that “the decision has not yet been made.” “Circle rates remain unchanged until July 31st. We will finalize the decision after analyzing the market conditions.
Rakesh Kumar Srivastava, Deputy Inspector General of the District Press and Registration Department, said. “The final decision in this case will be made by the District magistrate. We share our contributions with administrative officials. ”
However, real estate experts believe that any price increase could affect the area’s real estate market.
Greater Noida’s authority has lowered the real estate transfer fees charged for resale properties, making life easier for thousands of home buyers.
At a board meeting, the authority decided to reduce the transfer fee from 10% to 5% in institutional, commercial, and industrial categories. The allottees or buyers in Greater Noida must pay a transfer fee on the full resale value of the property along with the registration fee.
Dhiraj Jain, Director, Mahagun Group said, one of the decisions made at the meeting was to reduce transfer fees from 5% to 2.5% for residential areas, townhouses, shops / kiosks. The transfer fees are set at a maximum of one percent to 2.5 percent. This decision will definitely uplift the resale real estate market in different categories. For group housing societies or companies, the government has limited transfer fees to 1%.
Yash Miglani, Managing Director, Migsun Group said, the board meeting of the Greater Noida Authority proved fruitful for the real estate industry. It is expected that many issues will be resolved. The decision made to reduce the transfer fees, which will increase the resale market. The sector needs constant support from the authorities, especially in the current challenging environment.
The government plans to link e-courts with land registration databases and land records. By this way bonafide buyers can find out if the land they plan to buy is in a legal dispute or not. Also this will reduce suspicious transactions and help limit disputes and reduce barriers to the court system. A pilot project to connect e-courts with land records and registration database has been successfully implemented in Maharashtra, Uttar Pradesh and Haryana and soon launched across the country.
Improves Ease of Doing Business-
The Department of Justice in the Law Ministry has asked the registrars of all high courts to allow state governments to integrate land registration databases and land records with e-courts and the National Judicial Data Grid (NJDG). This helps in reducing and quickly resolving property disputes. So far, eight higher courts have answered including Tripura, Rajasthan, Madhya Pradesh, Assam, Mizoram, Himachal Pradesh, Arunachal Pradesh, and Nagaland.
A letter from the Department of Justice sent in April this year stated. “We would appreciate it if you could facilitate prompt action on your part by giving the state government the necessary permits to enable nationwide implementation of e-courts related to land records and registration database and other related tasks.”
Simple and transparent registration of property one of the parameters assessed by the World Bank. To determine the performance of 190 global economies on the EoDB (Ease of Doing Business Index).
Buyers can identify disputed land–
The Department of Land Resources (DoLR) is the focal authority responsible for registering the property index. It received only 3.5 points against 13 points for the quality of the Land Administration Index.
A committee was set up with the Supreme Court’s E-committee to link electronic courts with registration databases and land records. This will facilitate the registration of land titles and create a supportive ecosystem. If the legal status of a land / plot properly registered and published. Then it will be a transparent guide for the honest buyer in the execution of the sale and purchase agreement.
The “Electronic Courts” project being implemented in the district and lower courts of the country. With the aim of providing certain services to plaintiffs, lawyers and judicial authorities through universal computerization of district and lower courts.
Planning to invest in Hinjewadi, Pune? But wondering whether it’s worth investing in? When it comes to investing in Hinjewadi, buyers often face a dilemma, as Pune has several thriving localities. So, to make things easier for you we have described the 7 amazing reasons to invest in Hinjewadi.
Hinjewadi is one of the fastest-growing cities and is highly regarded as the state economic center. Generally, it is considered to be a prominent and well-known location for the IT sector throughout India. Today it is one of the most popular real estate centers in the city along with Wakad, Balevadi, Kothrud, Aundh, and Baner.
Due to its continuous development, investing in properties in Hinjewadi can fetch you a good amount of returns. Also, it is considered one of the largest IT centers in Pune and ideal for real estate investments. Apart from high returns, there are several other reasons why the area is suitable for real estate investment. Below we explain the reasons to invest in Hinjewadi or the benefits of investing in Hinjewadi.
Why should you invest in Hinjewadi? | Reasons to invest in Hinjewadi
1- INFRASTRUCTURE dEVELOPMENT | Connectivity
The area offers connectivity to the other localities in Pune and IT institutions situated in Baner and Aundh. Hinjewadi also has proximity to two most popular highways i.e, Mumbai-Pune Expressway and Pune-Bangalore Bypass. The area also offers rich green areas and natural beauty as well as ample opportunities for high return on investment. The area consists of some well known hospitals including Lata Mangeshkar Hospital, Medpoint, Sahyadri Hospital, and Aundh Chest Hospital.
2- Profitable Deal
Real estate considered one of the smartest and reliable investments after gold. However, in the case of real estate, it is crucial to invest in the right place at the right time. Talking about the present scenario of Hinjewadi, it is absolutely an ideal destination for property investment. The area is witnessing high economic and infrastructure development and is one of the reasons to invest in Hinjewadi. It offers a pretty good price appreciation and you can definitely expect a higher return on investment in the future.
3- Education and Commercial Institutions
The presence of educational institutions plays important role in determining the demand of real estate in an area. Hinjewadi also known as an education center because there are many national, international schools and universities around it. Recently, many business schools, law colleges, engineering and art colleges have opened here. As a result, you can see a crowd of students from different parts of India. Some of them settle here with their families as they get permanent jobs after higher education. Ultimately, results in a surge in the demand for housing sector. Some notable educational institutions here include Indira College, Sinhgad College, MIT, and parts of Pune University.
No doubt Hinjewadi is an ideal destination for people looking for passive or rental income source. Rental incomes can be one of the reasons to invest in Hinjewadi. Both commercial and residential real estate segments can fetch you good rental incomes. Many companies looking for office space and working professionals looking for rental apartments for themselves and their families. Hence, both commercial and residential sectors are in great demand.
5- Excellent Growth Potential
Another advantageous aspect of real estate investing in Hinjewadi is that it has a high growth potential. Several business centers want to expand their office in Hinjewadi, ultimately creating more employment opportunities. This will lead to the immigration of potential buyers from different parts of the country. As a result, increasing the demand for real estate in the upcoming year.
6- Prominent Business Parks
There are several business centers located in Hinjewadi with office space and with highly developed infrastructure. Several leading MNC companies have offices here, resulting in an increase in employment, which in turn has led to an increase in demand for residential properties. Some prominent IT parks include Quadron Business Park, Embassy Techzone, and Blueridge. Hinjewadi also well connected with other parts of the city, close to the Pimpri-Pune railway junction and Pune airport.
7- Varied Housing Options
Hinjewadi offers a varied range of housing options to investors as well as end-users. There are apartments, bungalows, townships, villas which are also built for residential purposes only. The price of an apartment in Hinjewadi varies from Rs 4,200 to 6,800 per sqft. There are many residential properties in different segments including luxury and affordable properties for living and investment purposes. So, these are some reasons to invest in Hinjewadi . Further if you have any query or doubt, then feel free to contact us!
Customers now have to pay about Rs 74,000 more depending on the property’s market value to register their sale deeds.
To support its dwindling income, the state government increased the property registration fee from 0.5% to 1% in the affordable segment from 50 to 75 lakhs. A notice issued by the law department requires home buyers to pay 3% of the property’s market value. The buyers have to pay when registering the purchase, where the property value is not more than 75 lakhs.
Currently, the registration fee for up to 50 lakhs is 2% and over 50 lakhs, and up to 75 lakhs is about 2.5%. State government sources said this was done to optimize registration fees. However, according to Credai it would have a big impact on sales.
Only exemption in property registration will create demand
The decision from the state government came at a time when the real estate sector was facing a sharp decline in demand for apartments and flats. Builders and developers in the state want the government to lower registration fees. If possible, even lower stamp duty to increase property sales. Builders, led by Credai, will meet with the law minister and submit a representation and try to convince authorities to cancel the announcement. Credai will try to convince by stating the example of Maharashtra, which briefly lowered registration fees to stimulate demand.
Covid-19 has hit the real estate sector a devastating blow as apartments and houses become more expensive and delayed. Credai’s investigation showed that this had an impact on construction activity and that buyers delayed purchases due to the second wave. The developers estimate that exemption on stamp duty or reduction of registration fees can help in creating demand.
The decision will spoil the market
Nilesh Salkar, Credai, Goa President said, the hike in property registration is counterproductive and completely unexpected for us. The government believes it can absorb the revenue. But a well known fact that lower the taxes, higher will be the revenue. This step will definitely affect the real estate sector and ruin the market for some upcoming years. In simple terms this fee increment means that customers buying an apartment under 75 lakh have to pay an additional 1% for registration.
Due to a growing number of complaints about developers illegally transferring the same apartment to multiple buyers. The MahaRera Real Estate Regulatory Authority (MahaRera) ordered them to publicly disclose whether the apartment was sold or reserved.
To avoid more than one transaction with apartments / plots, it is mandatory to provide information immediately once a flat is booked or sold. According to experts from the real estate market, there are cases where builders only issue an allotment letter to the buyer. (A letter of allotment kind of confirmation that the apartment is booked).
The apartment can be resold to another buyer and the first buyer remains unknown of this. Also the same apartment can even be mortgaged to banks or financial institutions. Ultimately, neither the first nor the second buyer is aware of the sale of the apartment. Also the bank is not aware of this kind of sale. Thus, the developer illegally collects funds for the same apartment from two or even three different buyers.
Difficulties to lenders and consumers–
Pankaj Kapoor, an official from a real estate firm, Liases Foras, said, the main purpose of RERA was to suppress such threats and actions. The law stipulates that developers upload information about mortgaged and sold properties on the RERA website. Previously, it was noticed that many builders’ projects were stuck in the NCR and MMR trap and practiced similar approaches. It had caused several difficulties to lenders and consumers. These builders need to severely be punished as this undermines consumer confidence and discredits the entire industry.
Shop Sold Multiple Times
Manohar Shroff, Navi Mumbai based builder said, Navi Mumbai has become “a villain’s port”. The whole industry suffers from some dishonest brokers and builders. In one case, Shroff said a developer cheated or misled several investors and fled to Pune. In another case, a builder fled with Rs 100 crore, and a third sold a shop several times in Belapur’s CBD and misled buyers. So, to avoid these kinds of fraud, buyers should register their documents as soon as possible.
Must Register Sales Agreement-
Property law expert, Lawyer Anil Harish said, it appears that even after the arrival of RERA, some developers continue to issue more than one allotment letter for a single property. This is obviously wrong in both civil and criminal law. Buyers should also check the MahaRERA website to see if the project registered and if building permits have been received. Also search sub-registrar registrations to check ownership and mortgages.
According to experts, buyers must register an agreement if more than 10% of the apartment price is paid. Stamp duty for a letter of employment, a letter of intent or a memorandum of understanding (MOU) can be 1% of the price to encourage people to sign up. This 1% must credited to the stamp duty specified in the contract, so you only have to pay the remaining 4%.
Following the publication of the draft in 2019, on Wednesday the Union Cabinet approved the Model Tenancy Act (MTA) model. This will simplify the rental process in India and help the rental economy in the real estate sector. According to the government, the law will help reform the legal framework for rental housing throughout the country, which will contribute and improve the overall economy growth.
What’s the purpose of this law?
According to the 2011 census, more than 1 crore of houses were empty in urban areas. Existing rent control laws had restricted the growth of the rental housing sector. Also homeowners avoid renting their homes due to fear of repossession. One of the possible steps to unlock the vacant house and to remove fear of homeowners is to bring transparency and accountability into the existing system for renting premises. While considering the interest of both homeowner’s and the tenant’s in a balanced manner.
The Model Tenancy Act 2021 seeks to create a sustainable, dynamic, and cost-effective rental housing market. The law will institutionalize rental housing, progressively move it towards the formal market and is aimed at meeting the demand of both owners and tenants. The Act also promotes the opening of houses that have been untenanted for several years.
How does Modern Tenancy Act benefit tenants?
Limit the security deposits:- The tenants have to pay at least one year’s rent as security deposit in cities like Bangalore and Mumbai. However with the new Act homeowners cannot demand for rent for more than two months as security deposit.
Restrict frequent rent hikes:- Throughout the rent agreement or lease period, homeowners cannot increase their rent. The homeowner must give the tenant three months’ prior notice before increasing rent.
Stop’s homeowner’s invasion:- The homeowners entering premises whenever and wherever they want, is a frequent complaint of various tenants. To prevent this from happening, the policy says owners must give 24 hours written notice before visiting. In addition, they can not come after 8 pm and before 7 am. Also, if there is a dispute between a tenant and homeowner of some nature then the homeowner cannot cut water and power supply to tenants.
Responsibility of structural maintenance:- While the policy states that both parties will be responsible for maintaining the leased property. However the responsibility for maintaining the property structure lies on the owner. In case of any repair or replacement work, the owner must give a prior 24 hours notice to the tenant.
How does Modern Tenancy Act help landlords?
Overstaying of tenants:- Now tenants who do not follow or do not comply with the tenancy clause, like staying longer than specified in the lease period. Or late payment of rental payment will be fine heavily. Especially in case of a delay in the stay even after the expiration of the lease. The tenant must compensate the homeowner by paying a double rent for 2 months, which in some cases can increase up to 4 times.
Subletting the home/flat The tenant is not allowed to sublet all or part of the rental property without prior permission from the owner.
Eviction of tenants made easier According to the model tenancy act 2021, homeowners can apply for the right of rental for eviction in the rent court, if tenants have not paid their rent for two consecutive months.
Opinions of real estate experts on the Model Tenancy Act 2021:-
Improves quality of housing.-
Ramesh Nair, former CEO, JLL India said. Housing for everyone cannot succeed without a strong rental housing model. The Model Tenancy Act not only reduces the slums quantity but it also improves the quality of housing. All government efforts have focused exclusively on home ownership.
Build better tenancy market.-
Managing Director of Poddar Housing and Development, Rohit Poddar said. The Act will regulate and promote rental housing and play a critical role in increasing the supply of rental housing. This will become an important requirement in the near future as the population grows. The rental terms are clear to both tenants and homeowners and reduce a number of disputes due to unwritten agreements. So, the decision benefits both tenants and homeowners. The Act will also improve the growth of the rental housing market in India as a whole.
Encourage Investors participation.-
Managing Director and Chairman of Knight Frank India, Shishir Baijal said. GST, REIT, RERA, and now tenancy laws will help transform the real estate sector into a more transparent and consumer-oriented sector. Thus, attract the best investors and institutional developers in the world to wider participation in the country’s real estate sector.
The Act contains provisions that regulate the rights and obligations of both homeowner and tenant. We believe that this law is a step in the right direction and we are pleased that the law has become a fundamental reality during the pandemic time.
Increased trust between tenants and homebuyers.-
Vice-Chairperson and Sr VP of NAREDCO, Manju Yagnik said. The Model Rental Act will undoubtedly be a game changer, resulting in increased trust between homeowners and tenants. This helps to create a suitable rental market without ambiguity. With the formation of a separate leasehold and tenancy law there will be a speedy resolution of disputes. In the short term, this law will lead to an increase in the supply of rental housing. It benefits all those seeking to migrate in search of work to an urban area.
Create new rental housing.-
National President of NAREDCO, Niranhan Hiranandani said. A new law is needed to make life easier for tenants, landlords and investors. The Model Tenancy Act 2021 will help reform the legal framework for rental housing across the country, thus helping in stimulating overall growth. The law will make it easier to remove the blocking of vacant rental homes. This is expected to provide impetus to private sector participation in rental housing as a business model to tackle the huge housing shortage. The law will institutionalize rental housing and gradually push it towards the formal market. This Act ensures the creation of new rental housing for all segments of the population and tackles the challenges that housing seekers face.
In this article we have discussed the 6 incredible benefits of investing in Panvel. If you are considering investing in Panvel real estate but concerned whether it is worth it, please go through the below pointers. The benefits discussed in this article are based on feedback from builders, brokers and clients living in Panvel.
The Panvel residential market has witnessed a significant growth in the past few years. The area offers a wide range of real estate investment opportunities. Properties in Navi Mumbai are really modern and known for luxury living. Of all the locations in Navi Mumbai, Panvel is the hotspot for the real estate boom. It offers a mix of fresh and spectacular scenery, robust infrastructure, connectivity and more! Here are some of the reasons to invest in Panvel real estate.
The 6 amazing Benefits of investing in Panvel
1 Infrastructure-
Panvel is 40 km from Mumbai and falls in the Raigad district. It has proximity to Thane and Navi Mumbai, two well-planned cities with robust infrastructure and attracts a lot of attention due to its proximity to major upcoming infrastructure projects. It is highly regarded for its connectivity as it is the intersection of various highways including Sion-Panvel Expressway, Mumbai-Pune Highway, National Highways 66, 4 and 4B.
The railway department is also executing crucial tasks in Panvel, and Panvel’s CST high-speed rail corridor is seen as an important game changer. As it will significantly reduce travel time and improve the overall transport connectivity of this region. Also the long awaited Navi Mumbai International Airport is very close. The new airport expected to be operational by the end of 2021. It also includes the project NAINA – Navi Mumbai Airport Notified Influence Area, developed by CIDCO. Another project that is attracting more investors to Panvel is a corridor of over 100 km from Alibaug to Virar.
2 Connectivity
One of the main benefits of investing in Panvel is the seamless connectivity to other areas of Mumbai. It is well connected to the major localities nearby, thanks to its amazing rail/road connectivity. The area also connected to the western and eastern highways and also in the center of Konkan, which can easily connect to other countries.
Connectivity of Mumbai Pune Expressway and Sion-Panvel exit further improves the reach to Panvel. As such, these roads provide easy access to all parts of Mumbai, making Panvel a great place to invest in real estate.
Real estate is considered one of the smartest and most reliable investments. However in the case of real estate investing in the right position at the right time is very crucial. Otherwise you won’t get the desired output or profit. In terms of profit there are many benefits of investing in Panvel. When buying a property, the amount of potential major infrastructural and economic improvements in that location should be considered. Nowadays, it is profitable to buy a new home somewhere like Panvel where you can expect a better return on investment in the future.
4 Less Traffic Hustle-
Panvel is a well-structured and well-planned place as a result people can move without any hustle even during peak rush hour. Since two decades, it has witnessed an amazing social and physical infrastructure growth. Although the recent breakthrough came later than Thane, making it an excellent investment destination.
5 Educational Institutes
Panvel has well-known educational institutions as well as many famous schools and colleges. The presence of prestigious schools and colleges are one of the benefits of investing in Panvel. Some of the most prominent educational institutions are Mahatma School of Academic Sciences and Sports, New Horizon Public School, Media Studies and Research and St. Joseph High School.
6 Less Pollution
Low pollution is one of the main reasons to invest in Panvel. It is the perfect place for those who want to live in peace, who want to enjoy landscapes and greenery. It offers accommodation at very reasonable prices compared to Mumbai and has both affordable and luxury homes. Also the level of pollution very low in Panvel compared to other areas thus, making it the most desirable place to invest in a home.
Conclusion-
When buying a property you should consider the amount of potential major infrastructural and economic improvements in that location. One should definitely consider Panvel, as the benefits of investing in Panvel are many. It is already a well planned city and has most of the amenities ideal for a perfect living. There are many banks, gyms, popular restaurants, clubs, amusement parks, shopping malls, etc. It also has some well-known and famous educational institutions. Considering all these factors, Panvel is definitely going to be one of the best areas to invest in real estate.
The Bihar Real Estate Regulatory Authority (BRERA) urges the state and central government to form an interdisciplinary team to ensure that real estate companies reimburse buyers money with interest or to get the building registered and give possession to buyers.
The bench of chairman Naveen Verma and members Nupur Banerjee and RB Sinha made the above suggestion on Monday. During a series of cases against Shine City Infraproject Private Limited, the directors of this company supposedly have gone to Dubai. They have cheated several people to register property in their name despite taking money against a housing project in Naubatpur, Patna.
The bench noted that in addition to Patna, the company committed a similar infringement against home buyers in other cities like Odisha, Uttar Pradesh, and Jharkhand.
Help of ED will be beneficial
The bench has ordered all plaintiffs to file an FIR to the State Police Economic Offence Unit (EOU) with all the facts and documents related to the company and submit them to RERA.
The bench has requested Bihar DGP to set up a dedicated investigation team to look at the consequences of the case. And explore the possibilities of seeking help from key investigative authorities such as the ED (Enforcement Directorate) to catch offender. As the company’s activities span several states and directors have gone abroad. It has also ordered RERA’s secretary to send a letter to DGP, with facts in the case so investors can register FIR against the company. It also instructed the RERA Secretary to discuss the matter with the Registrar of Companies in Lucknow for details of the company.
The authority is also taking help from a retired police officer with experience in financial crime. The role of officer is to investigate complaints from more than 90 people, who paid money to buy a property in Naubatpur but never brought to justice.
The move brings tremendous relief to the hotel industry, which is recovering from a severe income crisis following the pandemic. The property tax exemption is welcome after the industry has experienced a downturn with the first and second wave of Covid-19 cases. This step will definitely boost the hospitality sector and a good step by the state government.
On Monday the state government announced full exemption from property tax for hotels, restaurants, resorts and water parks in the fiscal year 2021-22.
The state also announced the revocation of flat electricity bills. So the hotel owners, restaurateurs, resort and water park owners only have to pay for the electricity they use.
It will ease financial burden on hoteliers
Jay Sudhakaran, general manager, Novotel Ahmedabad said, the industry felt neglected due to staff restrictions in companies and hotels that are not considered frontline workers. The news is a welcome change and would help many businesses who are struggling with COVID situation.
The Hotels and Restaurants Association (HRA) and the Gujarat Food Entrepreneurs Alliance (FEA) in Ahmedabad have issued statements and representations to the state government in this regard. On Monday afternoon, a meeting held between HRA representatives and Chief Minister Vijay Rupani, after which the decision was announced.
Narendra Somani, president, HRA, Gujarat said, rising rents, rising operating costs and lack of revenue due to the restrictions have severely impacted the restaurant and hotel businessess. The decision to abolish fixed electricity costs and property taxes will reduce the financial burden on hoteliers.
Real estate association CREDAI-MCHI on Tuesday requested the Maharashtra government to cut the stamp duty to 2 percent in Mumbai to revive housing demand amid the COVID-19 pandemic.
The association wrote separate letters to Udhav Thackeray, Chief Minister of Maharashtra, Ajit Pawar, Minister of Finance, and Balasaheb Thorat. Deputy Chief Minister of Maharashtra and Minister of Revenue of Maharashtra.
Drastic reduction in stamp duty collection
In September 2020, the Maharashtra government announced a 2-3 percent reduction in stamp duty. The exemption became ineffective in March this year. In support of its claim, the association cited a slowdown in housing sales and a sharp reduction in stamp duty collection for the state government.
CREDAI MCHI, which has more than 1,800 developer members, has asked the state government to reduce stamp duty to 2 percent in Mumbai by March 2022. In addition, authorities said the downward trend will continue and many potential buyers are hesitating due to higher transaction costs.
The industry authority noted that the decision to reduce stamp duty in August 2020 has helped the sector incredibly. However, the decision not to renew the stamp duty refund after March and the outbreak of another wave has led to extremely low-key sentiment from home buyers. Revenue collection for the authorities has also fallen. Property registration and stamp duty collection fell by 70 percent in May compared to March.
Low inquiries since past few months!
Deepak Horadia, president of CREDAI-MCHI, said, the association has called for an extension of the cut beyond March. So that the momentum of this industrial and economic revival does not fade. “However, we have seen a strong downward trend in inquiries and sales in recent months. Which not only hampers the sustained progress made in the real estate sector but also the more than 250 aid industries that come into play. Goradia said the state government should be aware of the need to return stamp duty reduction. So to regain the confidence of home buyers as well as increase its own revenue collection.
MahaRERA instructed Radius Estates and Developers, a co-promoter of the Ten BKC project in Bandra, to let 14 homebuyers withdraw from their project. And to repay the amounts paid by buyers with interest for non-payment of provisional or pre-EMI and for delayed ownership. The authority also ordered the builder to pay MahaRERA a fine of 10 lakh.
According to the plaintiffs, the developer has not given ownership by 30 November 2019 and also did not refund the amounts paid. All 14 home buyers booked apartments as part of the free sale component of the renovation project between 2016 and 2017. They reserved apartments under a subsidy scheme and paid about 63% to 74% of the total consideration for their apartments to the developer.
Possession and Sale agreements didn’t give on time
Tanju Lodha, homebuyers’ side lawyer, said the developer had not complied with the sale and purchase agreements and failed to fulfill its obligations to pay pre-EMI to banks. Thereby violating the comfort letter issued by it.
Delay due to lockdown
The co-promoter or agent represented by Vibhav Krishna stated that since the allotment letters have not been canceled, the complaints are baseless. The co-promoter said that due to lockdown the completion or end date of the project due to the closure has been postponed to December 2022. In addition, he said that he paid pre-EMI under the subvention scheme until January 2020. The entire amount received from the applicants was used for the construction.
The co-promoter also said that the promoters or developers are facing challenges due to disputes with middle-income groups. And that the case is awaiting commercial arbitration in Mumbai High Court.
Did Not Fulfil Commitments
MahaRERA member Vijay Satbir Singh noted that the co-developer has sent comfort letters to home buyers. In letter the promoter stated that it will pay the pre-EMI to financial institutions until possession. However, the co-promoter stopped paying the same amount in February 2020 and has breached its commitments and obligations. Although the co-founder agreed to repay the pre-EMI payment paid by the applicants but failed to do so.
The member stated that the co-promoter was not entitled to accept more than 20% of the total remuneration. In accordance with the MOFA (Ministry of Foreign Affairs) and 10% under RERA without entering into a registered sales contract with the buyers. And if the buyer not ready to complete purchase agreement it should have taken appropriate action against them or returned the money by canceling their apartment bookings.
Singh ordered the developer to refund the full amount with interest. At the marginal value of the SBI loan rate plus 2%. He also ordered to separately resolve any financial institution issues regarding repayment of money paid by them on behalf of the plaintiff.
Looking for the best area to buy flat in Pune 2021? Confused which is the best area to invest in Pune? In this article, we have discussed the top 10 areas or localities which are perfect for buying an apartment in Pune.
Maharashtra has been a pioneer in the effective implementation of RERA, thereby creating positive momentum in the real estate industry and increasing consumer interest. This has been a huge boost in the Pune real estate market supported by new transparency and accountability. The Pune housing market has preserved its momentum, even under difficult economic conditions. According to research, in recent years Pune has become one of the most efficient residential real estate markets.
It has gained a reputation as one of the most popular places to live after retirement. In addition to retirement, this city is desirable for living. So, if you are planning to settle in Pune, this article is for you. We have selected some of the best area to invest in Pune based on feedback from residents, proximity to major social centers, career centers, and proximity to airport and railway stations.
Best area to buy flat in Pune | Best Locality to buy flat in Pune 2021
1. Baner
Baner is located in the northwest of Pune and is a residential and commercial city just off the Mumbai Highway. Its nearby places are Balewadi, Pashan, Mahalunge, Aundh, Sus. Housing demand is primarily driven by professionals working in Baner-based software companies and other nearby employment centers, such as Rajiv Gandhi Infotech Park located in Hinjewadi.
Connectivity- The city has road links via Baner Road, Mumbai Highway (NH-48), and Pashan-Sus Road. It has a good public transport system that connects it with other areas of Pune. Pune Junction Station and Pune International Airport are 12 km and 18 km and can be reached within an hour. In addition, the planned 23.3 km of metro line 3 (Hinjewadi Phase III – Civil Law) would further increase connectivity in the region and improve the overall infrastructure.
Rajiv Gandhi Infotech Park is closely linked with Baner, a large 3-phase employment center in Hinjewadi. Therefore makes it the best area to buy flat in Pune. It has the presence of different IT / ITeS & BPO units together with some biotechnology and car companies. The main companies here are Cognizant, Infosys, Wipro Technologies, Tata Consultancy Services, Capgemini, etc.
Price of flat in Baner – The price of an apartment or flat in Baner starts from Rs 6,000/sq ft and goes up to Rs 9,400 per sq ft.
Viman Nagar got its name because of its connectivity to Pune Airport, which is only half a kilometer from the city. It is also considered as one of the posh localities in Pune, with areas like Mhada Colony and Kargil Vijay Nagar. It is surrounded by Pune Airport to the north, Sanjay Park to the west, Kargil Vijay Nagar to the south, and Tata Nagar to the east.
Connectivity:- The city is well connected to the rest of the localities in Pune through the Pune-Ahmedabad highway. Pune railway station is situated just 8 km from the city. Viman Nagar has close proximity to Pune International Airport. It is just 0.5 km away which makes it best area to invest in Pune. The upcoming Ramwadi metro station on line 2 of the MahaMetro line expected to open in 2023, would further improve the connectivity of this area. Koregaon Park, Kharadi, Tingre Nagar, Mudhva, are some of the nearby employment areas, which are 5 to 10 km from Viman Nagar. Proximity to these areas makes it the best area to buy flat in Pune. Generally, most of the retail markets and office space are situated on main roads like Samrat Ashok Road, Symbiosis Road, and Viman Nagar.
Price of flat in Viman Nagar. The price of an apartment or flat in Viman Nagar starts from Rs 6,700/sq ft and goes up to Rs 10,200 per sq ft.
Hinjewadi is one of the largest IT centers in Pune and also the most popular real estate center in the city today. It offers a number of investment opportunities in premium and middle-class housing projects and therefore best area to invest in Pune. The area offers excellent connectivity to the Baner, Hinjewadi, and Aundh IT parks. As well as the Pune-Bangalore ring road and the Mumbai-Pune highway.
Connectivity:- The government has proposed a metro line between Hinjewadi and Shivajinagar which reduces traffic during peak hours. Hinjewadi is extremely safe as there are CCTV cameras everywhere. It has some well-known educational institutions like Euro Kids and Indira School of Career Studies. The area offers excellent connectivity to Mumbai, Bangalore, and other central Pune areas via the Mumbai-Pune Expressway and Pune-Bangalore bypass. Pune Airport is 25 km away from the Hinjewadi Aundh highway. Thus, makes it the best area to buy flat in Pune. It has some well-known IT parks like Rajiv Gandhi IT Park, Embassy Techzone. Quadron Business Park, and Blueridge that attract IT professionals from all over India.
Price of flat in Hinjewadi. The price of an apartment or flat in Hinjewadi starts from Rs 4,600/sq ft and goes up to Rs 6,800 per sq ft.
Another very notable place for housing is Kharadi. Kharadi is located east of Pune on the banks of the Mula Mutha River. It is located on the ring road that connects the Pune-Solapur National Highway with the Mumbai-Ahmednagar Highway. Public transport is not a problem and there are numerous public buses running in the area. It is a very beautiful place and one of the best area to invest in Pune. You can find all modes of transportation from this part of the city to any major industrial area in the city.
Connectivity:- Kharadi is close to the airport and major residential areas such as Cyber City and Koregaon Parkbut. Also, it has excellent road links that make the city easily accessible to all major parts of Pune. Kharadi is Pune’s upcoming IT hub supported by a fast-growing micro-market across multiple industries, including IT, hospitality, education, and retail. It borders important locations such as Kalyani Nagar, Mundhwa, Viman Nagar, Wagholi, Hadapsar, and Koregaon Park. IT parks like WTC, Zensar, and EON are the main attractions in this region which make it best area to buy flat in Pune. The infrastructure in Kharadi is really good and it has some well-known hospitals as well.
Priceof flat in Kharadi. Affordable housing is available in Kharadi, making it perfect for both home buyers and investors. If you want to sell property in Pune, this area is the best option for you. Also, it is one of the best rental markets in Pune and fetches a good amount of income for you. The price of a flat in Kharadi starts from Rs 5,700/sq ft and goes up to Rs 8,500 per sq ft.
Undri has become a one-stop destination for builders with high-level projects. One of the benefits of this region is its amazing links through city roads and highways. Although Undri has far surpassed our notions in recent years, it still retains its natural beauty. With MIDC in Hadapsar Industrial Zone and Swami Vivekananda Industrial Zone in Handewadi, it has become best area to invest in Pune. Small and large companies have been established ranging from automobiles, electronics, biotechnology, chemistry, pharmaceuticals, textiles, etc.
Connectivity:- Nearby localities include Purandar taluka in the east, Velhe taluka in the west, Pune taluka in the north, and Pimpri-Chinchwad in the south. The Mumbai-Pune ring road is easily accessible from Undri, and the NH-9 is just 7 km away and makes it the best area to buy flat in Pune.
The airport is just 12 km away and the nearest railway station is situated at a distance of 8 km. Undri has some big malls like Seasons Mall and Dorabjee’s Mall. Mumbai-Bangalore Highway, Pune-Saswad Highway, Mumbai-Hyderabad Highway, and NIBM Highway are the main life trails in this region. Pune Junction and Hadapsar railway station can be reached by train and can be reached from Undri in 20 minutes. The proposed Greenfield International Airport in Saswad Purandara will be about 22 km from Undri.
Price of flat in Undri. The price of an apartment or flat in Undri starts from Rs 4,000/sq ft and goes up to Rs 6,100 per sq ft.
Hadapsar is located east of Pune and is one of the best and most developed cities in Pune and the best place to stay for the whole family. Hadapsar, the center of IT in Pune, has undergone a huge transformation. There were once farms in Hadapsar, but now it has undergone radical changes. Corporate companies like TCS, IBM, Accenture, and SAS, to name a few, have offices here. The town of Magarpatta and Fursungi IT Park are famous names in the region. From a housing perspective, there are many entertainment and recreational facilities, and real estate development makes it an ideal place for living.
Connectivity:- Hadapsar connected to major cities such as Nagpur and Mumbai via NH 9 and NH 27. The railway station is only 4.0 km from Hadapsar and the airport is 14 km away. Hadapsar used to be little more than agricultural land. But now it has become the city’s IT center which makes it an ideal or best area to invest in Pune.
Price of flat in Hadapsar. The price of a flat in Hadapsar starts from Rs 5,300/sq ft and goes up to Rs 9,000 per sq ft.
People looking for a new home can easily choose the Balewadi region when they have budget constraints. Balewadi has the most affordable houses in their class and you can easily find a home for both family and solo person.
Connectivity:- Balewadi is a northwestern suburb of Pune, located on the outskirts of the old town. It is famous for the location of the Shiv Chhatrapati sports complex. Balewadi is very close to the Baner, Aundh, and Mumbai-Pune Expressway. Therefore, real estate in Balewadi is highly desirable and is best area to buy flat in Pune.
Price of flat in Balewadi. The price of an apartment or flat in Balewadi starts from Rs 6,000/sq ft and goes up to Rs 8,900 per sq ft.
Kondhwa is one of the oldest southeast colonies of Pune. It is one of the most recently built residential areas and the fastest growing suburb of Pune. Kondhwa has connectivity to Pune Railway Station, Baner Airport, etc.
Connectivity:- NIBM Road, a 3.5 km stretch that connects Kondhwa Road with the Katraj-Hadapsar city road, will become a potential destination for investors. Good transport connectivity, planned surroundings, and the availability of all kinds of necessary infrastructure promote the demand for real estate here. This in turn affected property prices in the area, which took a bullish move and makes it the best area to invest in Pune.
Price of flat in Kondhwa. The price of an apartment or flat in Kondhwa starts from Rs 4,500/sq ft and goes up to Rs 7,100 per sq ft.
Mundhwa is an east area of Pune. It is bounded by the Mula River to the north, Manjri to the east, Ghorpadi to the west, and Hadapsar to the south. This is the ideal place for new buyers looking for cheap or affordable housing options. Located on the outskirts, but at the same time very well connected, which makes it an ideal destination for home buyers.
Connectivity:- Mundhwa considered an affordable investment destination in Pune. It is close to most IT parks and is still located between the Manjiri Green Area in the east and Ghorpadi in the west. Mundhwa has a number of options when it comes to real estate. It is the best area to buy flat in Pune for people living near Manjiri Green Area. The locality has everything from apartments to mansions, villas, and independent houses.
Price of flat in Mundhwa.Property prices in Mundhwa are quite affordable these days. The price of an apartment or flat in Mundhwa starts from Rs 5,100/sq ft and goes up to Rs 7,500 per sq ft.
NIBM Road in Pune has become one of the most suitable places to live in Pune. It is famous not only for homebuyers but also for the rental community. The factors that determine its popularity range from solid infrastructure to competitive housing. Wide connectivity to the popular areas of Hadapsar, Magarpatta, Kondhwa, and Kalyani Nagar as well as many modern conveniences and infrastructure.
Connectivity:- Although NIBM does not have its own IT center, it provides easy access to nearby technology parks. For example, Magarpatta IT Park is 8 km from NIBM along Solapur Road. Some of the global giants in Magarpatta IT Park include HCL Technologies, Capgemini, Mphasis, and New York Mellon. In addition, NIBM also offers unobstructed connectivity to Hadapsar via Vitthal Rao Shivarkar Street and Mumbai Highway. It has many manufacturing companies and IT professionals. Such as Serum Institute of India Pvt.Ltd, Maruti, IB Automation, Kirloskar Pneumatic Company Ltd. Presence of MNC companies makes it an ideal or best area to invest in Pune.
Price of flat in NIBM Road. The price of an apartment or flat in NIBM Road starts from Rs 5,200/sq ft and goes up to Rs 7,700 per sq ft.
In this article, we have described some best area to buy flat in Pune. The price of flats stated in this article is based on research and may differ from the actual one. You should always invest your money considering your budget and requirements. Also, the ongoing pandemic has disrupted or changed the plans of both home buyers and investors. As the ever-increasing prices in these areas show. Property prices here are likely to improve in the future following the execution of several major infrastructure projects.
To increase investment, the authority of Greater Noida (GNIDA) has launched a scheme of industrial plants, around 41 sites, ranging from 905 to 4062 square meters in Ecotech sectors 10 and 11.
Online applications for the program can be submitted at www.niveshmitra.up.nic.in by June 30. The process of allotment will begin on July 1 through lotteries and interviews for plots over 4,000 square feet. From this allocation, the GNIDA expects an investment of Rs 93 crore, which will cover a total area of 83,000 square meters.
Deep Chandra, additional CEO of Greater Noida Administration, said, we have developed a layout of an industrial plot scheme, where 38 plots or lands from 905 to 4062 sqm will be available in the Ecotech 10 and 11 GNIDA sectors. In addition, there are three plots of more than 4,000 square meter in these two sectors.
Narendra Bhuhsan, CEO of GNIDA, said, while GNIDA invites investment under the “ease of doing business model” proposed by the state government. Its goal is to encourage more multinational companies to set up operations in the area. “Many electronics manufacturers from Japan, Korea, and Taiwan have expressed interest in opening their manufacturing setup in Greater Noida. So, even in the Covid era, we launched an industrial land scheme to stimulate more investment. In addition, the Greater Noida administration will soon unveil new housing schemes for institutional, commercial, information technology, builders, and housing groups.
The Chandigarh Housing Council (CHB) is setting up five help desks to help bidders bid on 79 housing units in different parts of the city through e-tender.
On 17 May, CHB began an auction process for the sale of 79 residential properties in various sectors of the city. The auction is done through an electronic bidding process, and bidders can submit their bids for properties before 31 May. The help desk can be found in sectors 38 west, 49 and 51 as well as two in sector 63.
In the last auction, the CHB was able to auction 36 freehold dwelling units. The highest bidders were required to deposit 25% of the bid amount within five working days. However, the six highest bidders could not deposit the 25% amount within the prescribed period. And accordingly, their earnest money deposit (EMD) amount of Rs 2 lakh each has been forfeited by the board.
Change in Reserve Price
Yashpal Garg, CEO of Chandigarh Housing Council, said, they listed the six properties at the next auction and that a total of 79 properties were up for auction. The board of directors adopted full secrecy at the last auction and that the same formula will be applied at the next auction. CHB has compiled a list of 270 properties, including 11 residential (rent), 109 residential (non-ownership), and 150 commercial (leasehold) for sale. CHB has started auctions for the sale of residential properties first. The rest of the properties are offered for sale at a later date.
Privacy to bidders identity
In order to get response the CHB has reduced the property reservation price by 10%. Since the reserve price for residential and commercial properties was too high. Therefore none of the bidders showed interest in the CHB real estate auction in 2019.
This time, CHB decided to replace the real estate e-auction process with the e-tender process. In the e-auction, the deposit money (EMD) for participation cannot paid be online. The applicant pays the same into the CHB account and provides proof. CHB officials will confirm the payment before allowing the auctioneer to take part in the e-auction process. Thus, the number of applicants for a particular property and their identity are not entirely confidential.
In e-tender, EMD can be paid for online and no approval is required, so the number of bidders and their identity is completely secret and confidential.
Maharashtra Real Estate Regulatory Authority (MahaRERA) has commissioned developer Acme Housing India Pvt. Ltd to pay interest on deferred ownership. The authority has directed to pay 21 months of interest to homebuyers of the Alpinia project in Thane. In accordance with section 18 of the RERA Act.
The order from MahaRERA member Vijay Satbir Singh was received in response to a complaint from home buyers Aniket and Rajashri Alashe. They had booked an apartment in this project in December 2014 with the promise of ownership until 31 December 2017. The buyer also made a payment of Rs 1 crore. But the developer did not transfer the property under the registered sale and purchase agreement.
Thane Municipal Corporation was responsible for the delay!
Advocate K.R. Shekhawat, quoted by Acme Housing India Pvt. Ltd. strongly opposed the demand for deferred ownership. He said clause 9.2 of the agreement allows home buyers to terminate the agreement if the ownership has not been transferred. But they had not canceled the agreement. Shekhawat said that clause provides for an extension of the period of ownership in the presence of force majeure. (Force Majeure refers to a clause included in contracts to exclude liability for unpredictable and natural disasters that disrupt the course of events and obstruct participants from completing their task).
Claiming that Mumbai High Court did not allow Thane Municipal Corporation to issue building permits and Occupancy Certificates (OC) for projects on Ghodbunder Road due to lack of water in PIL (Public Interest Litigation). He said the Alpinia project suffered from this stay order because the project was near Ghodbunder Road.
Shekhawat also claimed that the demonetization and implementation of RERA and GST created a monetary crisis. This creates a lack of funds and daily wage laborers could not hire for construction work. He also cited a lack of sand, cement, and ready-mixed concrete in 2013-2014 as well as a ban on sand mining as reasons for the delay in project completion.
K.R. Shekhawat also accused Thane Municipal Corporation and said the OC granted four months after the completion of the project. He further said the ownership offered to home buyers after receiving OC. But they approached MahaRERA instead and therefore their complaint could not be resolved after granting the OC.
Violation of sale and purchase agreement
Lawyer Tanuj Lodha, representing home buyers, filed an objection and firmly rejected the developer’s claim. He claimed that the developer had accepted significant capital from buyers and the excuse of force majeure is baseless. He claimed that the developer had violated the terms of the sale and purchase agreement and the Maharashtra Real Estate Court of Appeal. In addition, the Bombay High Court has clearly ruled that the developer is obliged to pay interest on deferred ownership. Under section 18 of the RERA in the event of a breach of the terms of the agreement.
Developers should be aware of market risks!
MahaRERA member Vijay Satbir Singh noted that the sale agreement refers to a six-month extension or grace period until June 30, 2018. But by that date, the developer had not granted ownership. He rejected arguments about demonetization, RERA, GST, sand mining, etc. He said that the developer should have a good understanding of the real estate sector and market risks before starting the project. The developer failed to inform the applicants about the restrictions and also did not provide explanation on delayed possession.
He claimed that the Maharashtra Ownership of Flats Act (MOFA) allows the developer a maximum extension of six months or until June 30, 2018. After RERA came into force on May 1, 2017. The developer should pay interest on late ownership in accordance with the provisions of section 18.
Singh also noted that the buyers filed a lawsuit on June 20, 2020, after the developer received the OC and offered ownership of the apartment on March 3, 2020. “In that sense, MahaRERA feels that under the provisions of section 19 RERA. The buyers are obliged to take possession of the apartment within 2 months from the date of OC. However, the applicant violated the provisions of section 19(10). He noted and denied the increase in interest after March 3, 2020. The order stated that Acme Housing should pay 9.3 percent interest for each month from July 1, 2018, to March 3, 2020.
Century Real Estate, headquartered in Bangalore, has raised Rs 175 crore from the investment firm PAG to develop a luxury housing project. Century Real Estate, is a leading developer and one of the largest landowners in southern India. They have received an investment of Rs 175 crore from global investment firm PAG for its ultra-luxurious Century Ethos project.
The company said the funds will be used to repay existing debts and to speed up the construction work of the project.
Project Location
The estimated area of the Century Ethos project is about 7.3 acre. It is currently under construction phase, and is located in North Bangalore. The project includes approximately 330 luxury apartments. The price of these apartments varies and starts from Rs 3.4 crore and goes upto to Rs 12.5 crore.
Ravindra Pai, Managing Director at Century Real Estate, said, this new investment from PAG in Century Ethos confirms the growing confidence of local and foreign investors and consumers in the growing northern Bangalore region.”
The fund will help the company in faster completion of the project. Last year was the best year for the project since its launch. Another indicator that the demand for larger, higher-quality homes with luxurious outdoor areas is steadily rising.
Varied Portfolio
Century Real Estate said it has over 3,000 acres of land and over 20 million square feet of residential and commercial property under construction. Representing more than 3 billion dollar in asset value. Its development portfolio of over 20 million square feet includes hotels, office buildings, residential buildings, and educational institutions.
Last month, Prestige Estates Projects announced a joint venture with Century group to develop an office park in Bengaluru with an estimated construction cost of around Rs 900 crore.
PAG is one of the leading investment companies in Asia. He manages 40 billion dollar in capital across all strategies including private equity, real estate, and absolute profits.
The new “Indo-Swiss energy-efficient building technology” will be used in Andhra Pradesh’s housing scheme: Pedalandariki Illu (housing for all the poor).
As part of the initiative, around 30 lakh of affordable housing is being built in the state. Indo-Swiss energy efficiency technology will lower the indoor temperature by about two degrees. Thus save about 20 percent of electricity, officials said.
Training will be provided
Within the framework of the “Energy Efficiency in Buildings” project, the Bureau of Energy Efficiency (BEE) through Indo-Swiss BEEP will train engineers and staff in the district and village secretariats and the housing department. This will help effectively apply the Energy Conservation Building Code-Residential (ECBC-R) in this affordable housing scheme.
Initially, 50 engineers will be trained as Master Trainers, so that they can provide training to other engineers.
Ajay Jain Explained project details
Chief Secretary of the Housing Department Ajay Jain attended a recent webinar hosting the Indo Swiss Building Energy Efficiency Project (BEEP), India. In the webinar Jain elaborates the complete government’s strategy for implementing this ambitious project.
The heat transfer rate to the roof can be reduced by means of roof insulation or reflective roof paint. Autoclaved aerated concrete blocks, hollow walls, hollow bricks, etc. would further reduce the net heat flow to the building. Using proper window protectors such as blinds or rollers stored outside the windows also reduces the net heat gain.
The construction of the first stage covers about 14 lakh housing units. The government has decided to introduce energy-efficient and thermally comfortable structures in houses. This housing project will use energy-efficient design strategies that are in line with the Eco-Niwas Samhita 2018 (ECBC-Residential) Code for BEEP. ECBE-R provides adequate natural ventilation, reduces energy consumption by at least 20 percent. Improves thermal comfort, natural light, and provides a safer and healthier environment in the houses.
The Enforcement Directorate (ED) is investigating a loan of Rs 2,000 crore from Piramal Group to Omkar developers accused of money laundering. Those were days when the Omkar group was considered the largest slum redeveloper in Mumbai.
ED officials gathered paperwork related to the loan and last month called the Chief Financial Officer (CFO) of Piramal Group’s to register his statement.
Last week, Rajesh Ladda, CEO, and CFO of the Piramal Group met with ED and presented some important documents. The Piramal group has issued over Rs 2,000 crore loans to Omkar disbursed in different installments. ED representatives said that once they have finished examining the documents, they can call Laddha or other Piramal Group leaders again for further explanation.
It was purely a business deal
An industry insider said Laddha had been called to the usual questions and answers regarding the Omkar group’s business loans. The source also added that Piramal Group received about 80% of the loan amount from the Omkar Developers.
A Piramal official is believed to have told ED that the group was in financial business and disbursed loans to Omkar. This comes under a purely commercial deal and agreements have been signed between them. These agreements, together with related documents, have been sent to ED.
Earlier, the Omkar group also told ED representatives that several years ago it took loans from the Piramal group and other financial institutions for its various projects. ED investigated the Omkar group when it took out a loan of about Rs 400 crore from Yes Bank to build buildings for slum dwellers. Under the Slum Rehabilitation Authority (SRA) scheme in Wadala, but diverted the money to other groups of companies.
Promoters arrested
Actor and businessman Sachin Joshi helped Omkar for laundering about Rs 87 crore. The loan money was not used for the intended purpose. In January, ED arrested Babulal Varma and Kamal Kishore Guptu (Omkar Group promoters). In a case along with JM Joshi Groups. Kamal Kishore Gupta and Babulal Varma are currently in jail. But the high court releases Joshi on bail for two months for health reasons.
The ED recently filed a charge of money laundering of Rs 400 crore against the arrested defendant and 14 companies associated with him. Further ED in the charge sheet stated that Omkar group manages 8 projects throughout the city for Rs 23,000 crore. They have taken out a loan of around Rs 8,000 crore from various banks and financial institutions. Yes Bank issued Rs 2,755 crore to Omkar Groups at a price of Rs 8,260 crore. The accounts for three Omkar group projects became NPA, including the Yes Bank loan for the Worli project.
The state-owned NBCC and the Suraksha group are seeking to acquire Jaypee Infratech. They have submitted revised proposals and improved their proposals to financial lenders as part of the insolvency resolution process. According to sources, NBCC and the Suraksha group presented their revised proposal on Monday. Suraksha group has now offered a credit of Rs 3,000 crore as working capital for the construction of the project compared to the previous offer of Rs 2,000 crore.
It has also given undertaking or promised to cover any shortcomings from dissenting creditors.
NBCC offers up to 1,903 acres of land, and Suraksha Group has offered over 2,600 acres to lenders. The Suraksha Group has allocated 1,486 acres to dissident lenders out of the total land area proposed in the proposal.
NBCC has offered an additional 377 acres of land in the event that dissenting financial lenders are dissatisfied with their original 1,525-acre offerings bringing their total offer to around 1,903 acres.
Fourth round bidding
The Suraksha group has offered to keep the Yamuna Expressway project, NBCC has offered to transfer more than 80 percent of its stake in the project to lenders.
This is the fourth round of the Jaypee Infratech bidding process, which began insolvency proceedings in August 2017. The lawsuit was initiated following a plea bargain by a consortium led by IDBI. In March this year, the Supreme Court referred the CoC (Committee of Creditors) to approve Jaypee Infratech’s resolution plan. Which states that no new expressions of interest are expected to acquire the company and only NBCC and Suraksha Realty could submit revised proposals.
The Supreme Court also decided to extend the conciliation process by 45 days, which has now expired. In March 2020, NBCC received approval from the NCLT to acquire Jaypee Infratech.
Jaypee Insolvency
Jaypee Infratech went into insolvency proceedings or filed for bankruptcy in August 2017. Anuj Jain has been appointed a temporary Interim Resolution Professional (IRP) to handle the bankruptcy proceedings as well as manage the company’s affairs.
In the first round of insolvency proceedings, lenders rejected an offer of Rs 7350 crore from Lakshadweep, a member of the Suraksha group. CoC rejected bids from Suraksha Realty and NBCC in the second round, held in May-June 2019.
The case then referred to the National Company Law Court of Appeals (NCLAT) and then to the Supreme Court. On November 6, 2019, the Supreme Court decided to end Jaypee Infratech’s bankruptcy proceedings within 90 days. And ordered that the revised liquidation plan should only be invited to NBCC and Suraksha Realty.
In December 2019, the CoC, consisting of 13 banks and about 21,000 home buyers, approved NBCC’s resolution plan and received 97.36% of the votes in the third round of the bidding process.
Confederation of Real Estate Developers (Credai) and The Indian Builders’ Association said that due to labor shortages on construction sites, the timing of real estate projects may be affected as more than 25% of migrant workers have gone to their hometowns. UP-Rera is aware of the situation and says that it can increase the project’s timelines.
Greater Noida and Noida together have about two lakh ready to move in apartments. Also on March 25, 2020, the UP-Rera has already given developers an extension of their under-construction apartments.
Given labor shortages at construction sites, the Confederation of Real Estate Developers (Credai) and Indian Builders’ Association said the delivery timing of real estate projects could be affected. Since more than 25% of migrant workers traveled to their homes. UP-Rera has become aware of the situation and says that it can extend deadlines of projects.
Although work resumed after unlock, cities could not regain all the labor force as previously. In contrast to the pre-pandemic strength of about four lakhs, there are hardly about 1 lakh workers in the cities.
Pankaj Bajaj, president of Credai-NCR, said. Material supply was again an issue due to the closure of markets over the weekend. In addition, more than 25% of migrant workers traveled to their place of residence. As a result, daily work became a problem. We can not meet deadlines. This may affect the completion timing of the ongoing projects.
Balvinder Kumar, UP-Rera member said, we understand the current situation and may consider some relaxation for builders in the coming days, though nothing has been decided so far.
On Thursday Naredco to developers of all real estate projects in the cities and Yamuna Expressway area have been asked to create isolation structures for Covid-affected workers at their construction sites.
The isolation departments on construction sites will be equipped with basic medical services, including beds, wheelchairs, oximeters, and disinfectants. Authorities in Noida, Greater Noida, and Yamuna Expressway have commissioned Naredco to help build these facilities so that these facilities can provide emergency assistance to workers affected by Covid before serious patients are transferred to hospitals.
Noida, Greater Noida, and Yamuna Expressway together account for over two lakh housing units in various construction stages. UP-Rera is already aware of this problem but has not yet offered builders any particular relief in terms of extending the deadline. Despite the fact that more than 25% of migrant workers left the area and went to their place of residence. According to an estimate these cities today still have a lakh people working at nearly 240 under-construction project sites.
RK Arora, president of Naredco-UP, said, the initiative was led by the authorities of the cities of Noida, Greater Noida, and Yamuna Expressway. We are promoting this initiative and have so far instructed builders. To create isolation structures for workers at 250 project sites in these three urban areas. The aim is to provide basic support to Covid affected workers before they are transported to the nearest hospital. However, according to builders, no serious outbreaks of Covid have yet been recorded at any construction site. However, builders said the ongoing pandemic will affect the construction time frame.
Pankaj Bajaj, Credai-NCR president said, there are no reports of any major Covid 19 leak anywhere yet. However, the reduction of the vacant workforce and the disruption of the supply chain during the lockdown period affected the work at the project sites and the end date. Projects are likely to be postponed.
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.
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.
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.
