26-July-2019
Page 2 of 25
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
Page 3 of 25
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
Newspaper/Online ET Realty (online)
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
Page 4 of 25
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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Page 5 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
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
Page 6 of 25
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.
___________________________________________________________________
Newspaper/Online ET Realty (online)
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
Page 7 of 25
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.
Newspaper/Online ET Realty (online)
Date July 26, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/cait-demands-action-against-ms-dhoni-for-endorsing-amrapali-group/70388381
Page 8 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/tata-realty-and-infrastructure-to-focus-on-commercial-assets/70376296
Page 9 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/oberoi-realtys-net-profit-dives-50-in-q1-fy20/70379174
Page 10 of 25
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
Newspaper/Online ET Realty (online)
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
Page 11 of 25
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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Page 12 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-opposes-plea-of-investors-demanding-plots-in-dsk-project/70380601
Page 13 of 25
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.‖
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/karnataka-rera-resolved-30-complaints-against-builders/70372213
Page 14 of 25
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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Page 15 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/property-registration-up-by-10-in-ahmedabad/70373343
Page 16 of 25
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.
Newspaper/Online ET Realty (online)
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
Page 17 of 25
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Page 18 of 25
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.‖
Newspaper/Online ET Realty (online)
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
Page 19 of 25
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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Page 20 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
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
Page 21 of 25
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.
Newspaper/Online ET Realty (online)
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
Page 22 of 25
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.
Newspaper/Online ET Realty (online)
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
Page 23 of 25
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
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/infrastructure-quality-key-to-success-of-hyderabads-kokapet-township-industry-insiders/70372757
Page 24 of 25
such integrated townships, was another suggestion put forth by M Nanda Kishore, managing director
and CEO of Ramky Estates & Farms.
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Page 25 of 25
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.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date July 25, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/ambuja-cements-net-profit-grows-22-in-q1-fy20/70382198