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16-Oct-2019
10-Oct-2019 16-Oct-2019
CREDAI Bengal Daily News Update | 16.10.19
Delhi to sanction plans online for low-risk residential buildings
Under this portal, the building sanction plan process has been simplified and made
completely online with integrated payment gateways for issuance of sanction of building
plans," an official statement said.
As part of the Ease of Doing Business (EODB) reforms, an online portal for sanction of
building plans for up to 500 square metres (sqm) for low-risk residential buildings was launched
here on Tuesday by Delhi Lt. Governor Anil Baijal.
"Opening of this module will cover the majority of residential buildings in Delhi. Under this
portal, the building sanction plan process has been simplified and made completely online with
integrated payment gateways for issuance of sanction of building plans," an official statement
said.
"This process does not require any physical interface of MCD (Municipal Corporation of Delhi)
and the registered Architects will be able to generate their sanction automatically through the
system by completing the requisite formalities online and digitally signing the sanction letters."
Baijal said that residents can now get plans approved on self-certification basis.
"It will bring transparency and reduce human interface," he said.
According to the statement, all the inputs submitted by the registered architect will be checked
automatically by the software based Rule engine of the system, which has been made in line
with the building bylaws, Master Plan 2021 and relevant acts.
Till now, this facility was available for residential building plans upto 105 sqm, which has now
been extended to 500 sqm. This will help Delhites in getting the building plans approved
without any visiting MCD office, it said.
The SDMC Commissioner noted that around 1,491 architects are currently registered with the
system, who can immediately start using this facility and the process could even be completed
within a single day.
"Any new architect can get themselves registered through this online system only by
completing the registration formalities. This is the first initiative of its kind in any state/UT
(union territory) in the country," the statement said.
Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/technology/delhi-to-sanction-plans-online-for-low-risk-residential-buildings/71601512
Convenience stores to be only allowed inside societies in Ghaziabad
GDA vice-chairperson Kanchan Verma said such shops are meant only for society
residents, but the rule is never followed and they are thrown open for outsiders.
The Ghaziabad Development Authority has directed all upcoming residential colonies to
allow convenience stores to be set up only inside its premises. The Authority officials said the
decision has been taken to ease the traffic chaos caused due to shops present at the front portion
of societies.
GDA vice-chairperson Kanchan Verma said such shops are meant only for society residents,
but the rule is never followed and they are thrown open for outsiders. This, she said, leads to
traffic-related issues.
―We are passing only those map layouts that have shops inside the premises. Earlier, it was not
anticipated that giving permission to convenience shops on the front side would lead to so many
issues,‖ she added.
In August, the GDA had issued notices to developers of fourgroup-housing societies in Raj
Nagar Extension that opened shopping complexes foroutsiders.
They were directed to build a wall on the front side of the complex tolimit access to the shops.
Later, it was found that there was no mention of a wall infront of the shopping complexes in the
GDA-approved maps.
The builders were supposed to develop a green area at the front and barricade it. Verma said she
would review the progress made bythe builders and take appropriate action.
Currently, a large number of people from nearby localities visit these shopping complexes and
in the absence of proper parking spaces, theypark their vehicles by the roadside causing traffic
snarls.
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Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/convenience-stores-to-be-only-allowed-inside-societies-in-ghaziabad/71590166
Will investors regain confidence on home financiers?
"The crisis of capital appears to be nearing its end," said Ajay Manglunia, MD and Head
- institutional fixed income - JM Financials.
The difference in the cost of debt funds for triple-A rated private-sector home financiers, such
as Housing Development Finance Corp (HDFC), and Tata Capital Housing, and that for other
public-sector bond issuers, such as Power Finance Corp, has lately narrowed, signalling
renewed investor appetite for bonds issued by top non-bank lenders.
For such financiers, absolute yields have also begun easing from the highs reached in the
immediate aftermath of last autumn‘s IL&FS defaults, which had choked fund flows to private-
sector home financiers and non-bank lenders.
"The crisis of capital appears to be nearing its end," said Ajay Manglunia, MD and Head -
institutional fixed income - JM Financials. "Some investors are beginning to trust housing
finance companies again.‖
The spread, or differential, between the bonds of triple-A rated housing finance companies
(HFC) and similar public sector benchmarks is now 82 basis points, compared with 103 basis
points (average) quarter-ended in March and 94 basis points in June, showed data from Crisil
Research.
A basis point is one hundredth of a percentage point.
About a year ago, infrastructure financier IL&FS defaulted on loan repayments, stoking concern
among bond investors in non-bank lenders.
At present, three-year, top-rated HFC bonds are yielding 7.79%, compared with 9.43% in
September last year, and 8.15% in March 2018. Absolute yields remained above 8% for at least
six quarter until last month, Crisil data showed.
The Reserve Bank of India (RBI) has slashed the policy rate by 135 bps since February, helping
lower the absolute yields.
―Companies backed by large brands are drawing investor attention as the housing market in
India has a long way to go, with the government making housing a priority," Manglunia said.
The government has set the ―Housing For All‖ goal by 2022.
Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/will-investors-regain-confidence-on-home-financiers/71595063
For lower rated papers, the spreads remain elevated, however. For AA+ rated HFC bonds, the
spread is 389 bps in October this yearversus 88 basis points in September last year.
―Select investors are seeking to bet on companies with good corporate governance as money is
amply available in the system," said Dinesh Prajapati, head of treasury at M&M Finance. "Our
bond borrowing costs are falling almost to the September level last year.‖
"Mutual funds are still to be back to the bond market, while corporate treasuries and insurers are
subscribing to bonds offered by top NBFCs, including housing finance companies," Prajapati
said.
For NBFCs, the spread is still relatively high, compared with last September. For such lenders,
the gauge is now at 128 bps compared with 75 bps in September 2018 for three-year bonds.
―The contracting spreads reflects investors‘ comfort level for top rated HFCs,‖ said Bhushan
Kedar – Director, CRISIL Funds and Fixed Income Research. ―On the other hand, less demand
for lower-rated papers also aided to shrinking spreads.‖
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Rajasthan HC asks if ban on conversion of houses to shops still on
in Walled City
The state government in its notificaiton on January 25, 2000 had banned any conversion
of land from residential to commercial.
A division bench of Rajasthan High Court asked the state government to explain whether the
notification issued in 2000 prohibiting residential to commercial conversion and not allowing
the increase of buildings‘ height is still active in the Walled City. The bench also asked the state
government to submit its detailed policy to deal with the trade of inflammables in the Walled
City.
The state government in its notificaiton on January 25, 2000 had banned any conversion of land
from residential to commercial. The court comprising Justice Mohammad Rafiq and Justice NS
Dhaddha gave this interim instruction on a public interest litigation (PIL) filed by one
Bhanupratrap Gupta.
On April 18, 2018, the petitioner brought the attention of the high court on lack of resources to
extinguish the flames especially in the Walled City areas and also on the illegal units of
inflammables in the Walled City.
Earlier, the court had asked the Jaipur Development Authority (JDA) to inspect it and thereafter
in November 2018 appointed a court commissioner. On July 26, 2019, the court asked to stop
the trade of flammable substances in a rule-breaking manner.
During the hearing of the case, the court said the JMC stated the state government was
preparing a special scheme for the sale of flammable substances and till then, under the Master
Plan 2011, they are approving the sale of these substances on the main road itself.
The bench in its order asked the principal secretary, UDH and principal secretary, local self-
government (LSG) to provide a detailed account on the policy which state government brought
to curb the sale of inflammables in the narrow lanes of the Walled City. Court has fixed October
31 as the next date of hearing.
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Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/rajasthan-hc-asks-if-ban-on-conversion-of-houses-to-shops-still-on-in-walled-city/71601566
Housing projects under scanner for failing to register with
Karnataka RERA
The real estate regulator has put out a list of such projects on its website — this list
includes two housing projects by the Bengaluru Development Authority (BDA) too.
About a thousand housing projects in the state, most of them in Bengaluru, are under the
scanner of the state‘s Real Estate Regulatory Authority (Rera), for failing to register with the
regulator and ignoring their notices.
As a result, customers of flats at these residential projects will lose their right to approach the
Rera if they face a problem with the seller. Rera polices only those projects that are registered
with it.
The real estate regulator has put out a list of such projects on its website — this list includes two
housing projects by the Bengaluru Development Authority (BDA) too. The real estate authority
has warned home buyers: ―The public is hereby informed that these projects are not registered
with Rera and are under investigation. The public is warned that dealing with these projects is at
their own risk as these are not registered with Rera.‖
In the past two years since the inception of the authority, Rera officials have zeroed in on about
1,700 unregistered housing projects. ―Identifying unregistered projects is an elaborate process.
We prepared the list based on complaints from the public and by scrutinising media
advertisements of housing projects. We then verified the information and issued notices,‖ KS
Latha Kumari, secretary at Rera, said.
While about 1,075 developers have replied to the regulator's notices, Rera officials have found
only 700 replies satisfactory. ―About 300 replies are not okay and we have asked them to
submit additional documents — however, they have not come back yet,‖ the secretary said.
Promoters of 712 projects did not respond to repeated notices at all.
Although officials admit that not all projects in the list of 1,000 that are on Rera‘s radar could
be invalid and they may have even received occupancy certificates, officials ask what prevents
them from providing clarification or register with Rera. The challenge now is to track these
unregistered projects that are mostly from lesser-known developers, who in many cases are not
even available to contact on phone or email.
Officials say that though the awareness level about Rera is comparatively higher in
Bengaluru, Mysuru and Mangaluru, it is abysmally low in other cities. ―Registration has
happened to a large extent in major cities. About 3,520 projects have registered so far and a
Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/housing-projects-under-scanner-for-failing-to-register-with-karnataka-rera/71597116
majority of them are from Bengaluru. But we need to create awareness in smaller towns where
people seem to be not aware of the Rera Act at all,‖ Kumari said.
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HDIL owes Rs 2,815 crore interest on PMC bank loans
Rakesh and Sarang Wadhawan, the father-son duo who are directors of HDIL, are
currently being questioned by the police.
Probe into PMC Bank loan fraud case has revealed that HDIL‘s dues to the bank include Rs
2,260 crore of principal and an additional Rs 2,815 by way of accumulated interest on it.
Rakesh and Sarang Wadhawan, the father-son duo who are directors of HDIL, are currently
being questioned by the police.
Joy Thomas, former managing director of the bank accused of sanctioning loans to the
Wadhawans and their companies, told the police the accused had repaid the bank Rs 500 crore
in 2009.
―However, they did not repay Rs 4,355 crore that includes the principal and interest amount,‖
said an officer from the economic offences wing (EOW), the probe agency.
Thomas told the police since the bank had fixed an interest rate of 18-25% per annum on the
loan, he was hopeful the bank would do good business. ―However, the Wadhawans did not
repay it,‖ Thomas told his interrogators.
He said during 2009 and 2010, the HDIL suggested that PMC Bank buy a company, Navlon Pvt
Ltd, for Rs 169 crore, and they would later buy it from the bank. Thomas said the Wadhawans
lured the bank saying the company machinery was worth Rs 200 crore and it would earn a profit
from the sale.
PMC Bank bought the company and the Wadhawans promised to buy it from the bank for Rs
180 crore, for which it sought a loan. Later, the bank learnt the company was with the liquidator
as it owed loans to five other banks.
Among the eight companies named in the FIR, the first is HDIL. Investigators have also found
documents that show PMC Bank‘s former chairman Waryam Singh was one of the directors in
one Prithvi Realtors and Hotels Pvt Ltd during 2005-2009.
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Newspaper/Online ET Realty(online)
Date October 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/hdil-owes-rs-2815-crore-interest-on-pmc-bank-loans/71606824
Omaxe in talks to raise Rs 400 crore for Delhi project
Omaxe, in this public-private partnership (PPP) project with North MCD is developing a
multi-level parking-cum-commercial centre in Delhi’s Chandni Chowk.
Realty developer Omaxe is in advanced talks with private equity firms to raise over Rs 400
crore for its commercial project spread over 4.5 acres in Delhi‘s Chandni Chowk, two persons
familiar with the development said.
Omaxe, in this public-private partnership (PPP) project with North MCD is developing a multi-
level parking-cum-commercial centre at Gandhi maidan. The project is estimated to increase
the parking capacity to over 2,400 car parks and 81 tourist buses.
Apart from the private equity induction, the company is expected to fund the project through
internal accruals of Rs 250 crore and customer advances of up to Rs 400 crore.
Omaxe has already secured all the requisite permissions for the project, construction for which
started in July and is expected to be completed by December 2021.
―The talks are at an advanced stage and the term sheet has already been signed with one of the
entities. It is likely to be concluded any time soon,‖ said one of the persons mentioned above.
―This would be an interesting project to see a private equity induction as it is primarily a
parking-led development.‖ The total development under this project is around 1 million sq ft, of
which around 2.5 lakh sq ft will be retail component, while 1.25 lakh sq ft will be dedicated to
food and beverage.
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Newspaper/Online ET Realty(online)
Date October 16, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/omaxe-in-talks-to-raise-rs-400-crore-for-delhi-project/71606800
Xander Investment sets up $250 million industrial real estate
platform for India
The venture will acquire assets in the high growth logistics and e-commerce sector along
key industrial corridors across leading Indian cities, Xander said in a release.
The global investment firm the Xander Group‘s private equity real estate arm Xander
Investment Management (XIM) has set up an industrial real estate platform for India. XIM
Singapore will act as the investment advisor to the platform that will invest $250 million or over
Rs 1,780 crore in high quality assets over the next 12 months.
The venture will acquire assets in the high growth logistics and e-commerce sector along key
industrial corridors across leading Indian cities, Xander said in a release.
Sponsored by the Xander Group, the platform has raised capital from leading European
institutional investors that have previously been limited partners in XIM sponsored opportunity
funds.
―We have been investing opportunistically in the industrial/ logistics sector since 2007. With
the economy poised for retail, manufacturing and consumption growth, it is the opportune time
for us to create a platform with like-minded investors that will execute a longer term, targeted
program,‖ said Rohan Sikri, Senior Partner, TXG and Managing Director, XIM.
The platform has been seeded with a portfolio of two million sq ft incubated by Xander. The
portfolio is spread across Mumbai and Chennai and is anchored by leading multinational and
domestic corporations such as Amazon, Kerry Indev, DB Schenker, TVS Logistics, amongst
others.
―The group has a strong presence across the real estate ecosystem in India and our exposure to
the retail and industrial sector in India positions us well to execute on this new platform,‖ said
Ram Reddy, Managing Director, Xander Advisors India.
The logistics sector is in a transformational phase in India as a result of major federal
government reforms, and increasing organized retail penetration and consumption patterns. The
growth impact on the sector, currently at $160 billion or 6% of GDP, is expected to be greater
than 10% annually.
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Newspaper/Online ET Realty(online)
Date October 15, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/xander-investment-sets-up-250-million-industrial-real-estate-platform-for-india/71599852
Hundreds of societies in NCR looms in uncertainty over diesel
genset ban
Unlike Delhi, which was able to shut down DG sets last year and can do it again this year,
NCR cities don’t have reliable, round-the-clock power supply and bank heavily on
gensets.
Diesel gensets hummed across NCR as power cuts greeted the Graded Response Action
Plan (GRAP) to check air pollution on the first day of its rollout on Tuesday, showing why the
measure to turn off the polluting devices is ill-conceived before the Haryana and UP
governments put the infrastructure in place to supply power round the clock, uninterrupted.
In the hundreds of housing societies in Gurgaon, Noida and Ghaziabad, though, there was
uncertainty through the day as local administrations issued no clear orders, and some builders in
Noida served notices to residents that DG sets won‘t be used except for lifts.
The confusion, as TOI had reported in its October 14 edition, stems from an order from the
Environment Pollution (Control and Prevention) Authority a week ago banning use of DG sets
in Delhi and some NCR cities, including Gurgaon, Noida and Ghaziabad, from October 15 as
part of preventive measures for the pollution season. Unlike Delhi, which was able to shut down
DG sets last year and can do it again this year, NCR cities don‘t have reliable, round-the-clock
power supply and bank heavily on gensets.
In Gurgaon, the Haryana State Pollution Control Board (HSPCB), which had earlier said a ban
on diesel gensets will be implemented only if the air quality turns ‗very poor‘, directed
authorities to implement a blanket ban on diesel gensets, regardless of air quality. Surprisingly,
the order did not take into consideration power cuts or the plight of hundreds of families who
live in societies that do not have power connections and depend entirely on gensets.
Vipin, a resident of ILD Greens, a township in Sector 37C, pointed out, ―Our society has got a
letter from Rera directing the developer to provide 24x7 power supply through an alternative
source till a power connection is provided to the society.‖
Even though the discom was on Tuesday successful in providing uninterrupted power supply,
RWAs said they had received no communication from the administration on use of diesel
gensets. Sanjay Lal, vice-president of the Lagoon Residents Apartments Complex Association,
said, ―We have been reading (about the ban) the news. But we haven‘t received any formal
communication, neither from the developer nor from the authorities to ban diesel gensets.‖
The pollution control board said it would seek an exemption for some areas the city, which
could mean those where societies that run on gensets are located. ―We have instructed all
Newspaper/Online ET Realty(online)
Date October 16, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/hundreds-of-housing-societies-looms-in-uncertainty-over-diesel-genset-ban/71606840
regional officers to make sure the ban on diesel gensets is implemented strictly. But we have
been taking it up with EPCA chief to provide exemptions for some areas,‖ said HSPCB member
secretary S Narayan.
Last week, discom DHBVN had sought more time from the EPCA to build adequate power
infrastructure. There are neatly 11,000 high-power diesel gensets in the city.
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