26-July-2019 - CREDAI...CAIT demands action against MS Dhoni for endorsing Amrapali Group The...

26-July-2019

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CREDAI Bengal Daily News Update | 26.07.19

WEST BENGAL

Kolkata mayor talks tough on illegal constructions

On Wednesday, the mayor received several calls during an hour-long "talk to mayor"

programme at the civic headquarters relating to unauthorized constructions.

Mayor Firhad Hakim on Wednesday asked senior KMC buildings department officials to get tough

with a section of real estate promoters, who have been flouting rules and indulging in illegal

constructions.

On Wednesday, the mayor received several calls during an hour-long "talk to mayor" programme at

the civic headquarters relating to unauthorized constructions. Mayor also asked civic top brass to take

action against a section of the civic officials, who have been neglecting their duties and thus helping

unscrupulous promoters.

During the talk, Hakim asked the municipal commissioner to initiate disciplinary action against an

assistant engineer of KMC building department for failing to prevent an illegal structure under his

jurisdiction. The caller alleged that despite a "stop work" notice to the promoter for undertaking an

illegal construction, the promoter was busy constructing an unauthorized floor on APC Roy Road at

midnight.

Another caller from Manoharpukur Road, a prime south Kolkata locality alleged a promoter was

constructing a building without caring for leaving the mandatory open space around the under-

construction building. Besides illegal construction several callers requested the mayor to take notice

of a failing drainage network in their areas and take measures to rectify the loopholes.

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Newspaper/Online ET Realty (online)

Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kolkata-mayor-talks-tough-on-illegal-constructions/70380245

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OTHER NEWS

General Atlantic in talks to hike stake in PNB Housing Finance

This is the US-based fund’s second attempt to increase its stake in the company in which it had

acquired a 9 per cent holding during the time of its initial public offering three years ago.

Private equity investor General Atlantic is in talks to raise its stake in PNB Housing Finance, the

country‘s 5th largest home finance company, by pumping in close to Rs 1,200 crore through a planned

preferential allotment of shares, according to people briefed on the matter.

This is the US-based fund‘s second attempt to increase its stake in the company in which it had

acquired a 9 per cent holding during the time of its initial public offering three years ago. The fund

had reached an agreement to acquire a part of Punjab National Bank‘s (PNB) holding in the company

in March, but the deal fell through the cracks as it didn‘t get a requisite regulatory nod.

The PE investor has been working on an alternative plan to invest further in the company ever since,

though it could face opposition from promoter PNB, which is not keen on diluting its stake at current

market prices. PNB owns around 32 per cent stake in the company and an investment by the fund

could lead to a dilution of its stake by 2-3 per cent, according to ET‘s estimates.

PNB Housing Finance shares have slipped by almost 30 per cent in the past six months.

―The board had earlier approved the business plan for current financial year which also incorporates

the requirement for capital raise. Subsequent to the same, we will be seeking omnibus approval in the

upcoming board meeting for raising tier-I capital by issue of equity shares or any other financial

instrument as may be considered appropriate,‖ a spokesperson for PNB Housing Finance said in

response to ET‘s queries.

General Atlantic declined to comment when contacted.

An executive with PNB, however, said that the lender is not keen to dilute its stake unless there is an

urgent requirement of capital for regulatory requirements.

―We are not keen unless the market conditions improve,‖ the PNB executive said.

PNB Housing Finance‘s managing director Sanjaya Gupta had assured analysts on a conference call

on May 9 that the company would be raising tier-I capital in the current financial year. ―There is no, I


Date July 26, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/general-atlantic-in-talks-to-hike-stake-in-pnb-housing-finance/70388476

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must say, diversion or diverse thoughts between the management and the board and the shareholders.

Capital to a financial institution is like a fuel,‖ Gupta said during the call.

Gupta also emphasised that ratings agencies such as CARE had recommended that the company raise

primary capital to support its growing corporate loan book.

The PNB Housing Finance board will be meeting on July 30 to consider fund raising options, the

company said in a stock exchange filing earlier this week.

PNB Housing posted 51 per cent increase in its net profit for March quarter at Rs 380 crore as against

Rs 252 crore in the corresponding period last year. The loan assets for the firm grew 30 per cent

annually to Rs 74,023 crore from Rs 57,014 crore.

―Certain state-run financial players have broken out early and used the larger base of mother

companies available to run like private organisations and be very profitable,‖ KPMG‘s head of private

equity, Nitish Poddar, said.

―These have attracted financial investors and continue to be a place to watch out for,‖ Poddar said.

PNB Housing is among the handful of PSU-backed financial services companies that have attracted

investments from private equity funds. US based PE firm Carlyle also owns a 32 per cent stake in the

company. Carlyle is also an investor in SBI‘s cards business. PE giant KKR has also invested in SBI‘s

life insurance arm.

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Indiabulls Housing Finance recommends Gagan Banga as CEO for

merged entity

Sameer Gehlaut has been proposed as non-executive chairman of the merged entity, it added.

Indiabulls Housing Finance on Thursday said the board has recommended Gagan Banga as CEO of

the proposed entity to be formed after its merger with Lakshmi Vilas Bank.

This is to inform you that the board of directors of IHFL have recommended that in order to ensure

continuity and to provide broader oversight and the benefit of vision of its Chairman Sameer

Gehlaut to the amalgamated bank, Indiabulls Housing Finance said in a regulatory filing..

Gehlaut has been proposed as non-executive chairman of the merged entity, it added.

In order to ensure smooth transition and continued growth, Banga, who is the current managing

director and chief executive officer of IHFL, should continue in the same position in the amalgamated

bank, it said.

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Date July 26, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/indiabulls-housing-finance-recommends-gagan-banga-as-ceo-for-merged-entity/70388329

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Delhi HC stays remittance of Rs 250 crore to Parsvnath over Three C

plea

Parsvnath had terminated the agreement with RLDA over a title dispute related to a 38-acre

land stretch that the company had bought for Rs 1,651 crore.

Delhi High Court on Tuesday stayed remittance of Rs 250 crore to Parsvnath Rail Land

Project(PRLPPL) following an appeal filed by Three C Infra. Parsvnath Developers is the promoter of

PRLPPL.

According to Rishi Kapoor, adcovate representing Three C, Rs 65.50 crore was invested in optional

convertible debentures along with interest in PRLPPL and now the amount owed inclusive of interest

is Rs.250 crore.

PRLPPL was a special purpose vehicle (SPV) created to develop a project in Delhi for Rail Land

Development Authority (RLDA). Parsvnath had terminated the agreement with RLDA over a title

dispute related to a 38-acre land stretch that the company had bought for Rs 1,651 crore.

RLDA had challenged it in Delhi HC's divisional bench which upheld the arbitral award of Rs 1,034

crore in favour of Parsvnath, given by a single bench. It then appealed in Supreme Court which too on

July 8 dismissed it plea and upheld the arbitral award.

According to the artbitral award, Rs 1,199.32 crore was directed to be made by RLDA to Parsvnath.

Out of this, Rs 250 crore is now retained by Delhi HC's registry.

The case will next be heard on July 29.

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Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-hc-stays-remittance-of-rs-250-crore-to-parsvnath-over-three-c-plea/70378955

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CAIT demands action against MS Dhoni for endorsing Amrapali Group

The forensic audit report accepted by the top court on Tuesday said that Amrapali Sapphire

Developers Pvt Ltd had paid Rs 6.52 crore, out of the total amount of Rs 42.22 crore, to RSMPL

during 2009-2015.

Traders' body CAIT on Thursday wrote to Union Consumer Affairs Minister Ram Vilas Paswan

seeking action against cricketer M S Dhoni for his endorsement and advertisements promoting

realtor Amrapali Group, whose registration has been cancelled by the Supreme Court.

Court-appointed forensic auditors have told the Supreme Court that Amrapali Group had entered into

"sham agreements" with Rhiti Sports Management Pvt Ltd (RSMPL), which promotes brand of Indian

cricketer Mahendra Singh Dhoni, to "illegally divert" home buyers money.

The forensic audit report accepted by the top court on Tuesday said that Amrapali Sapphire

Developers Pvt Ltd had paid Rs 6.52 crore, out of the total amount of Rs 42.22 crore, to RSMPL

during 2009-2015.

In a release, the Confederation of All India Traders (CAIT) said that in a communication sent to

Paswan it has demanded action against former Indian cricket team captain Dhoni for his endorsement

and advertisements promoting Amrapali Group which has been found guilty by the Supreme Court in

a decision made a day before.

The CAIT has said that endorsements by Dhoni have "greatly influenced" people to buy flats in

Amrapali projects and since the builder is found guilty an accountability also falls on Dhoni.

Asking for a stern action against Dhoni, CAIT Secretary General Praveen Khandelwal also urged

Paswan to ensure passage of the Consumer Protection Bill in the current session of Parliament so that

people could be saved from misleading and deceptive endorsements and advertisements by celebrities

without verifying the facts whether the goods or services they are endorsing are worth of it or not.

On Tuesday, cracking its whip on errant builders for breaching the trust reposed by home buyers, the

top court cancelled registration of Amrapali under the real estate law RERA, and ousted it from its

prime properties in NCR by nixing the land leases.

The SC, which directed a probe by the ED into alleged money laundering by realtors, provided relief

to over 42,000 home buyers of Amrapali Group with the verdict. It directed the state-run National

Buildings Construction Corporation to complete stalled projects of the realtor, whose directors Anil

Kumar Sharma, Shiv Priya and Ajay Kumar are behind the bars on top court's order.


Date July 26, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/cait-demands-action-against-ms-dhoni-for-endorsing-amrapali-group/70388381

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Tata Realty and Infrastructure to focus on commercial assets

The Mumbai-headquartered firm currently has 20 mn sft of commercial projects at various

stages of development and planning.

Tata Realty and Infrastructure plans to scale up its commercial portfolio to 45 million square feet over

the next 10 years, a top executive said.

―For Tata Realty, the focus is commercial office space and it can be part of larger development too,‖

said Sanjay Dutt, the newly appointed managing director and chief executive officer of Tata Realty

and Tata Housing. These firms were put under a single management recently.

The Mumbai-headquartered firm currently has 20 mn sft of commercial projects at various stages of

development and planning. ―Funding isn‘t an issue. We have financial partners who want to further

extend the partnership as co-investors,‖ Dutt said.

The real estate player is eyeing both organic and inorganic growth opportunities across segments and

major property markets like Benguluru, Pune and Chennai.

Over the last few months, Tata Realty has acquired three greenfield projects on outright basis for Rs

600 crore. ―Apart from acquisition, we are also looking at joint development and agreement to fuel

our portfolio,‖ he added.

The group is realigning operations of Tata Housing and Tata Realty to emerge as a major real estate

player. ―We will grow our residential portfolio too along with retail, which can be part of our larger

development,‖ said Dutt.

Since inception in 1984, Tata Realty, the group‘s wholly-owned real estate development company,

has delivered 21 million sft of real estate and has around 49 mn sft development potential across

projects.

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Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/tata-realty-and-infrastructure-to-focus-on-commercial-assets/70376296

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Oberoi Realty's net profit dives 50% in Q1 FY20

The company's net income was Rs 618.10 crore during the said quarter, a dip of 31 per cent

from Rs 895.38 crore it had registered in the similarly quarter previous year.

Oberoi Realty reported a dips of 50 per cent in its net profit during the quarter ended June 2019. Its

profit after tax (PAT) stood at Rs 152.07 crore as against Rs 309.42 crore it had recorded in Q1 FY19.

The company's net income was Rs 618.10 crore during the said quarter, a dip of 31 per cent from Rs

895.38 crore it had registered in the similarly quarter previous year.

While company's revenue from real estate segment dipped 33 per cent in Q1 FY20 and stood at Rs

571.18 crore, its revenue from hospitality segment witnessed a rise of 4 per cent and stood at Rs 32.07

crore.

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Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/oberoi-realtys-net-profit-dives-50-in-q1-fy20/70379174

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Bombay HC stays Shree Ram Urban Infrastructure's plot auction to

repay buyer

The city collector was to auction a 3,000-square-foot portion of an open plot at Shree Ram Mills

to recover dues for a flat buyer under the real estate regulatory Act.

The Bombay high court on Wednesday stayed an auction scheduled for Thursday of a plot adjacent to

the jinxed 56-floor under-construction tower Palais Royale at Worli Naka.

The city collector was to auction a 3,000-square-foot portion of an open plot at Shree Ram Mills to

recover dues for a flat buyer under the real estate regulatory Act. The buyer had cancelled the

agreement following inordinate delay in possession.

The stay comes after an official liquidator (OL) appointed for developer Shree Ram Urban

Infrastructure Ltd submitted a report objecting to the auction. The OL, a government officer, was

appointed in 2016 to oversee distribution of dues to creditors of the developer.

Prathamesh Kamat, counsel appearing for the OL, said the collector was seeking to auction the plot

without consulting with the liquidator, as the high court had directed in an earlier December 2018

order.

Kamat also said the plot being auctioned was different from the asset, a spacious flat with garages,

under the Maharashtra Real Estate Regulatory Authority (MahaRera) order.

The developer is in provisional liquidation and is the owner of Shree Ram Mills.

Justice K R Shriram, who heard the matter on Wednesday, directed in an interim order that the auction

not be held until further orders, and placed the matter for hearing after a month.

A couple, Ajit Sanghavi and Malini Sanghavi, had filed a complaint in November 2017 before

MahaRera against the developer.

Sanghavis‘ counsel Snehal Paranjpe pointed out that last December, the high court had permitted the

auction after MahaRera held in favour of buyers in March 2018. She said the collector has heard the

OL before proceeding with the recovery measures. The couple wanted the high court to direct the

liquidator to pay them Rs 24 crore with 10% annual interest from July 1, 2018, till repayment of the

amount as directed by MahaRera.

On December 12, 2018, the HC had directed the city collector to sell assets of Shree Ram Mills in


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/bombay-hc-stays-shree-ram-urban-infrastructures-plot-auction-to-repay-buyer/70372050

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consultation with the OL and the amounts recovered will be deposited with the OL who would then

invest it in a fixed deposit of a nationalized bank and not disburse any amount without the court‘s

prior permission. The OL said he had written to the collector on July 17 to stop the auction which it

said was in complete violation of the HC order.

Kalpataru Properties, through counsel Fredun DeVitre, also said the auction would affect their

existing right of way as their projects are in the vicinity.

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Maharashtra opposes plea of investors demanding plots in DSK project

Special public prosecutor Pravin Chavan filed a say before the special MPID judge A S

Bhaisare stating that these plots were created on the basis of false and fabricated layout though

the land was mortgaged with the Credestrial trusteeship company against the debentures raised.

The state prosecution on Wednesday opposed the application of over 40 buyers, demanding

possession of plots in a D S Kulkarni Developers Limited‘s project at Phursungi.

Special public prosecutor Pravin Chavan filed a say before the special MPID judge A S Bhaisare

stating that these plots were created on the basis of false and fabricated layout though the land was

mortgaged with the Credestrial trusteeship company against the debentures raised.

Chavan told TOI, ―The DSKDL (D S Kulkarni Developers Limited) firm had raised money from the

public after seeking permission from the Securities and Exchange Board of India (Sebi) for

developing the ‗Dream City‘ project at Phursungi. For protecting the interest of the debenture holders,

the Sebi had imposed certain conditions, like the firm would have to mortgage property with the

trusteeship company. If the firm failed to repay money of the debenture holders with interest, then the

company would have the right to sell the property and repay money to the debentures. The firm then

mortgaged the property, starting from survey number 35 with the company.‖

Chavan said, ―The DSKDL, run by the developer D S Kulkarni, his wife, Hemanti, and others, had

prepared forged documents of layout of the mortgaged property and issued plot allotment letters

collecting Rs135 crore from the public. The investors interested in purchasing the plots filed

applications before the court that the plots be allotted to them.‖

The prosecution in its say opposed the application on the grounds that the property had been

mortgaged, and the layout plan prepared by Kulkarni and others was false and fabricated. The

application filed was not maintainable and the court had no jurisdiction to decide the rights of the

parties under the Specific Relief Act, the prosecution said, praying to dismiss the application.

The investigation officer of Pune police‘s economic offences wing, deputy secretary of the state home

department and sub-division officer — the competent authority under the MPID Act — had been

named as respondents in the application filed by the investors‘ lawyer, Sudip Kenjale, under Section 7

(3) of the MPID Act.

The court will hear the application on August 19.

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Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-opposes-plea-of-investors-demanding-plots-in-dsk-project/70380601

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Karnataka RERA resolved 30% complaints against builders

According to data sourced from RERA-K, around 2,700 complaints are being heard currently

and will be resolved at the earliest.

A total of 3,958 complaints have been registered with the Real Estate Regulatory Authority –

Karnataka (RERA-K) against builders on various grounds. Of these, 1,174 (30%) have been resolved

and, in about 150 cases, buyers have withdrawn complaints after working out a compromise with the

builders.

According to data sourced from RERA-K, around 2,700 complaints are being heard currently and will

be resolved at the earliest. RERA-K chairman MR Kamble said: ―RERA-K acts on complaints filed

by homebuyers. They need to upload them on the RERA website and the authority would hear the

case after receiving complaints online.‖

While some builders say there have been instances where buyers have sought to misuse RERA norms

to their own benefit, RERA-K authorities maintain they haven‘t come across such cases. ―Even after

passing judgments against builders, buyers have not been compensated by the former. Now we have

told the revenue department to issue showcause notices against errant builders for property

attachment,‖ a RERA official said, adding 117 notices have been forwarded to the Bengaluru Urban

deputy commissioner‘s office.

A majority of the complaints from homebuyers in Bengaluru pertain to delay in delivery of flats,

mismatch between customer expectations and final output and documentation issues. City-based GM

Infinite, which is among the builders with the least complaints at RERA-K, believes there will be few

or no legal complications if quality of construction is not compromised and customers‘ trust is

protected.

Referring to the 21 complaints against GM Infinite that have already been disposed of by RERA-K,

chairman and managing director Gulam Mustafa told TOI: ―We have consistently delivered all our

projects to customers well on time, without compromising on quality or expectations. It is

questionable that only 10 of 2,390 customers found fault in some our projects and our services.‖

Anuj Puri, chairman of real estate consultancy Anarock Property Consultants, said there are two sides

to a coin. ―RERA was implemented in the Indian real estate market not only to make it more

transparent and disciplined but also to keep a check on unscrupulous activities of developers who had

been taking buyers for a ride for years. However, RERA – like any legislative policy – can potentially

be used frivolously when a buyer wrongly blames a developer for issues relating to purported

mismatch in provision of amenities or quality of construction.‖


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/karnataka-rera-resolved-30-complaints-against-builders/70372213

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RERA, Puri said, is still a work in progress and with any evolving regulation come loopholes which

some may seek to exploit. There may be ignorance of the fact that RERA works both ways — it is

also meant to protect developers from underhand activities by customers. ―As RERA evolves, we will

see many inconsistencies resolved. If there are cases of frivolous litigation, they need to be

discouraged,‖ he said

JC Sharma, vice-chairman and managing director of Bengaluru-based Sobha Ltd, said, ―There are

delays in getting regulatory approvals, including OC and NOC, from the fire department. Buyers

should factor this in. This, in some sense, is against the spirit of RERA. Developers alone cannot be

pushed to the wall.‖

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Property registration up by 10% in Ahmedabad

An official said that collection of stamp duties and registration fees had touched the record high

of Rs 5,934 crore in 2017-18 in the state.

Property registrations in Ahmedabad district have grown by 10.5% in 2018-19 against that in 2017-

18. In all, 21,991 more property transactions were registered in 2018-19 than in the previous year.

While answering Daskroi MLA Babubhai Patel, the state government said in the assembly that in the

year 2018-19, 2.32 lakh properties were registered in Ahmedabad against 2.10 lakh in 2017-18. The

government said that in the two years, 2017-19, the state earned Rs 3,873.83 crore in revenue from

stamp duty, and Rs 672.17 crore from registration fees in Ahmedabad district.

Officials in the stamp duty office pointed out that the figures pertained to only registrations done in

Ahmedabad district, and the ground reality of stamp duty collection has dispelled fears of a real estate

market slump due to demonetization, GST and RERA.

An official said that collection of stamp duties and registration fees had touched the record high of Rs

5,934 crore in 2017-18 in the state.

The trend continued in 2018-19 with registration of 8.20 lakh sale deeds and collection of Rs 3,993

crore in the first eight months since December, said the official.

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Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/property-registration-up-by-10-in-ahmedabad/70373343

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Over 1.70 lakh homes in 220 projects stalled in top 7 cities: Report

The Mumbai Metropolitan Region (MMR) follows next with nearly 38,060 units stalled across

the city.

The Supreme Court‘s landmark Verdict on Amrapali Developers has rekindled the hopes lakhs of

home buyers who have been waiting futilely for delivery of their homes. While similar developments

with regards to other stuck projects are awaited, the apex court has now set a precedent with a

resounding message - comply or perish.

According to ANAROCK research, as many as 220 projects equaling 1.74 lakh homes are completely

stalled in the top 7 cities alone. Launched either in 2013 or before, these projects have absolutely no

construction activity going on. The overall value of all stalled units is estimated to be more than Rs

177,400 crore. Most of these projects have been grounded due to either liquidity issues or litigation.

Almost 66% of these stalled units have already been sold to buyers who have been left in the lurch - at

the mercy of either the concerned developers or the law of the land. The net estimated value of these

sold units is around Rs 111,100 crore.

Of these markets, the National Capital Region (NCR) market has the largest pile-up of stalled units

with 1.18 lakh homes or 68% of the total stuck stock spread over 67 projects with an overall value of

Rs 82,200 crore. Of this, nearly 69% or 83,470 units are already sold out. Around 98% of the stuck

projects in NCR are located in Noida and Greater Noida alone, while other cities like Gurugram,

Ghaziabad have minimal inventory.

The Mumbai Metropolitan Region (MMR) follows next with nearly 38,060 units stalled across the

city. However, the number of projects covering stuck units in this region is higher than in NCR.

MMR's stalled units span over 89 projects as against 67 projects in NCR. Interestingly, in terms of

value of the stalled units, MMR is quite close to NCR, with stalled units worth over Rs 80,200 crore

as against Rs 82200 crore in NCR, ANAROCK data showed.

Despite a huge parity in the overall number of stalled units between the two major regions,

astronomical property prices in MMR have kept this difference minimal.

Pune comes next with nearly 28 projects comprising 9,650 units worth Rs 7,000 crore completely

stalled, followed by Hyderabad with nearly 4,150 units worth Rs 3,600 crore stuck. Bengaluru has 26

projects comprising 3,870 stuck units worth Rs 4,200 crore, the data showed.

With so many projects stuck across the top cities, affected home buyers now see a glimmer of hope

with the Supreme Court's intervention in the Amrapali case.


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/over-1-70-lakh-homes-in-220-projects-stalled-in-top-7-cities-report/70379294

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Mumbai collector to acquire 22 buildings that stand in way of Bhendi

Bazaar redevelopment

The project by the Saifee Burhani Upliftment Trust (SBUT) is the biggest community cluster

redevelopment project of Mumbai, which is set to change the face of Bhendi Bazaar area.

The path to redevelopment of the Bhendi Bazaar area is set to be smoothened with the Mumbai City

Collectorate ready to acquire 22 buildings that were standing in the way. The landlords and tenants of

these buildings were opposed to handing over their property, but the Collectorate is hopeful of

acquiring them soon.

The project by the Saifee Burhani Upliftment Trust (SBUT) is the biggest community cluster

redevelopment project of Mumbai, which is set to change the face of Bhendi Bazaar area.

Mumbai City Collector Shivaji Jondhale told Mumbai Mirror, ―The SBUT is in the process of

redeveloping the entire area. Since this is a cluster redevelopment project, these 22 buildings are

needed. They have redeveloped more than 277 buildings. In case of the 22 buildings, the landlords

and tenants are not giving possession. We are now starting the process of acquiring these buildings. It

is a cluster redevelopment project and these buildings are needed.‖ He added that if the landlords are

willing to sell, then they would be paid 25 per cent more than the market value. If they refuse, then the

houses could be forcibly acquired, for a lesser price, he said.

One of the landlords Mirror spoke to said that they were being offered ‗peanuts‘ for their property.

―The authorities have been calling our buildings dilapidated. They want our property for peanuts. We

want them to give it to us in writing that they will give us market value or more. This project has been

approved by the BMC, MHADA and is being done by a private developer. Why is the Collectorate

getting into it?‖

An SBUT Official said, ―Regulation 33(9) of the Development Control Ragulations provides for

compulsory acquisition of buildings from non-consenting owners for the purpose of undertaking the

cluster redevelopment project . Hence the Collector‘s office has initiated the land acquisition

proceedings for the remaining buildings that form part of 16.5 acres Bhendi Bazaar

redevelopment project through private negotiations.‖


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-collector-to-acquire-22-buildings-that-stand-in-way-of-bhendi-bazaar-redevelopment/70381816

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A Mantralaya official said, ―In congested areas like Bhendi Bazaar, cluster redevelopment is the best

possible solution to revive the old and dilapidated buildings.‖

Over 2,900 families have moved out and over 750 businesses have vacated their premises to fast track

the redevelopment work. The first phase of the redeveloped towers is nearing completion with houses

allocated to 614 residents and shops allocated to 120 owners.

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Land pooling scheme farmers bet on Andhra Pradesh government's

help to market their plots

The LPS farmers got nearly 30 percent of the land back in the form of returnable plots after

giving away over 33,000 acres to the capital city.

The farmers who parted their land for Amaravati city projectthrough Land Pooling Scheme (LPS) are

confident that the state government would complete infrastructure works in a time-bound manner and

help them market their plots.

The LPS farmers got nearly 30 percent of the land back in the form of returnable plots after giving

away over 33,000 acres to the capital city.

These farmers were upset at the way the previous government had neglected completion of promised

infrastructure work in the area where they got the plots back. ―The TDP government promised to

complete roads, drains, drinking water, electricity, telephone and other infrastructure to create demand

for our plots. But nothing happened,‖ said K Satyanarayana, an LPS farmer. He said at least

completion of roads close to their plots would allow them sell their plots.

Apart from completion of basic infrastructure works, the YSRC government is contemplating to relax

building rules in the capital city area to accelerate construction activity within Amaravati.

Restrictions were imposed on high rise buildings in the capital city during the previous regime with a

view to help big realtors who launched their projects outside the capital city.

―The capital city will witness economic boom only when land rates are reasonable and within the

reach of the middle class. How many could purchase a small plot of 200 sq.yard by shelling out Rs 1

crore? The artificial bubble has burst and correction in land prices is going to spur development in the

area,‖ said A Sridhar Reddy, an analyst. The locals suspect that politicians, who invested huge monies

in benami names to purchase the land, could be in for real trouble due to slump in real estate market.

It is believed that more than 2,000 acres of land is in the hands of benamis of public representatives.

Interestingly, the river bank farmers who did not join LPS heaved a sigh of relief after the YSRC

government deciding not to go for forcible acquisition of land.

____________________________________________________________________


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/land-pooling-scheme-farmers-bet-on-andhra-pradesh-governments-help-to-market-their-plots/70373434

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Sushant Lok residents plan to meet Haryana CM to oppose demand of

FAR increase

Residents of Sushant Lok, DLF oppose developers' demand of increase in FAR, plan to meet

CM

A group of residents of Sushant Lok, DLF and other areas are planning to meet the chief minister and

oppose the demand by developers and plot owners to increase floor area ratio (FAR) from 1.98 to 3.

They have said that the move would put extra load on the infrastructure in licensed colonies.

On Monday, developers and plot owners had met the director of department of town and country

planning (DTCP) and appealed that if FAR is increased, they would be able to construct on more area

in smaller plots. Under the present FAR norms, they argued, a lot of space is left vacant and only

limited construction is allowed.

Ramesh Singla, president of the home developers association, said that the state government had

already allowed construction of a fourth floor and its registration as an independent dwelling unit but

the FAR was still the same. Increasing the FAR would balance the demand-supply gap and also check

violations as people carry out illegal construction, he said in a memorandum to DTCP director KM

Pandurang, who said the department will study the feasibility first.

As per existing norms, where the FAR is 1.98, the plot owner can construct on around 66% of the

area. If FAR is revised to 3, this can increase to around 80%. If FAR is increased, plot owners will be

able to construct and occupy more area on their land.

However, residents are unhappy with the idea. They say that the existing infrastructure, which is more

than 30 years old, might not be able to sustain the additional load if and when the FAR is increased.

Sunil Bhatia, resident of DLF 1, said increasing the floor area ratio would mean more families in a

building and extra load on the infrastructure. He said that residents are already facing issues with basic

amenities like water, electricity, roads, apart from lack of security.

Abhey Poonia, a resident of Suncity, said he and other residents of DLF and Sushant Lok 1 are

seeking time from the CM. ―We will strongly oppose the proposal given by home developers as it is

not favourable for the city with a poor infrastructure. The authorities should first upgrade the

infrastructure and only then allow such provisions,‖ he said.


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/sushant-lok-residents-plan-to-meet-haryana-cm-to-oppose-demand-of-far-increase/70372851

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Pune civic body to seek views of merged villages' residents on DP

As per Pune Municipal Corporation (PMC) officials, separate meeting will be held for every

village.

The civic administration will start holding discussions with the residents of newly merged 11 villages

from August 1 to include their suggestions in the separate development plan (DP) for the areas.

Urali Devachi, Phursungi, Undri, Lohegaon, Keshavnagar, which is a part of Mundhwa, Sadestranali,

a part of Hadapsar, Uttamnagar, Shivne, Ambegaon Khurd and Dhayari were merged in

the PMClimits in 2017. Over 3 lakh people staying in these areas have been facing hardships due to

the lack of basic amenities like drinking water, better roads, drainage lines and electricity.

As per Pune Municipal Corporation (PMC) officials, separate meeting will be held for every village.

―The schedule of the meetings will be announced at the gram panchayat, ward and government offices

in the respective villages soon,‖ the civic body stated.

PMC has already appointed city-based Gokhale Institute of Politics and Economics (GIPE) to take up

socio-economic survey of the merged areas. Feedback from the citizens will help GIPE to make

recommendations.

The civic officials said the feedback of the local citizens on the existing infrastructure and their

demands will be essential to make the DP document comprehensive. ―The administration has chalked

out a detailed plan to extend public amenities in the newly merged areas. As of now, the new areas

have been attached to the nearby ward offices. Separate officers have been appointed for every village

to ensure better communication,‖ a senior civic official said.

Vasant More, a corporator from Katraj area, said urgent efforts were required to stop illegal

constructions and haphazard implementation of infrastructural projects in the newly merged villages.

Airing similar views, Chetan Tupe, NCP‘s city unit president, said the merged areas were witnessing a

huge growth in terms of real estate and required more funds and a separate cell to monitor execution

of projects.

The state government initiated the merger process of the 11 villages in 2017, which was completed in

2018. Of the 11 villages, seven have been merged completely. In the case of the other four, PMC had

already included some of their areas in the civic limits earlier and the remaining areas were merged in

2017.


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/pune-civic-body-to-seek-views-of-merged-villages-residents-on-dp/70373563

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Infrastructure quality key to success of Hyderabad's Kokapet township:

Industry insiders

On Wednesday, Arvind Kumar, principal secretary of the department of municipal

administration and urban development (MAUD) said that the township is expected to come up

in the next five to seven years.

While supporting the Telangana government‘s move to develop an integrated township in Kokapet –

about 10 kms from Hi-Tec City – industry insiders said that the authorities must first strengthen

basic infrastructure in the area, to attract big-ticket investments. Already, the core IT belt is reeling

under various civic crises, including water shortage and traffic congestion.

On Wednesday, Arvind Kumar, principal secretary of the department of municipal administration and

urban development (MAUD) said that the township is expected to come up in the next five to seven

years. Speaking at a conference on ‗Rise Infrastructure Hyderabad – Enhancing Liveability‘,

organised by Confederation of Indian Industry (Telangana) along with the state government, he said

that the project will house 90 million square feet (sft) of office space and create five lakh jobs. At

present, Kokapet has about 4.5 million sft of office area.

―Integrated township that wasn‘t an economically viable proposition 10 years ago – because of ample

space in the core IT zone – is now the way forward because of overcrowding in Gachibowli, Financial

District etc. But, it will be tough to market the project if issues of water and public transport – both

missing from most parts of the western corridor -- aren‘t resolved,‖ said the proprietor of a leading

construction firm.

With the government likely to auction about 200 acres of land in Kokapet, over the next two to six

months, developers feel that it should also maintain a reasonable price point. The current land cost

here is a stupendous Rs 30 core to Rs 32 crore per acre. ―Players buying at this rate will end up

struggling to sell their product. It isn‘t feasible.

The government rate should be around Rs 18 crore per acre,‖ said R Suresh Kumar, senior vice

president (business operations), Prestige Group (Hyderabad). He, however, upheld Kokapet as the

‗next big thing‘ in Hyderabad‘s realty market. The group is developing 1.8 million sft of IT office and

1.6 million sft of residential space . Incentives to home-buyers and employers, setting shop within


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/infrastructure/infrastructure-quality-key-to-success-of-hyderabads-kokapet-township-industry-insiders/70372757

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such integrated townships, was another suggestion put forth by M Nanda Kishore, managing director

and CEO of Ramky Estates & Farms.

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Ambuja Cements' net profit grows 22% in Q1 FY20

The company's net income during the said quarter was Rs 7,179.23 crore, a rise of 4 per cent

from Rs 6,917.16 crore it registered in the similar quarter previous year.

Ambuja Cementsreported a growth of 22 per cent in its net profit during the quarter ended June 2019.

Its profit after tax (PAT) stood at Rs 831.75 crore as against Rs 684.46 crore it recorded in Q1 FY19.

"Focus on increasing premium product portfolio, targeting high contribution markets, improved

customer service combined with logistics efficiencies resulted in achieving a strong performance."

said Bimlendra Jha, managing director and CEO of the company.

The company's net income during the said quarter was Rs 7,179.23 crore, a rise of 4 per cent from Rs

6,917.16 crore it registered in the similar quarter previous year.

The government's current budgetary allocation in infrastructure development, i.e. construction of

concrete roads, interlinking of rivers, irrigation projects and affordable housing is expected to have a

favourable impact on cement demand, the company said in a media release.

____________________________________________________________________


Date July 25, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/ambuja-cements-net-profit-grows-22-in-q1-fy20/70382198

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