Real estate Act comes into force today, some states may miss deadline

MUMBAI: The Real Estate (Regulation and Development) Act or RERA comes into force on Monday buoying home buyers while builders are busy upgrading businesses for the new regime of stricter regulatory supervision across the country, but several states have missed their October deadline and are yet to notify final local RERA rules.

States such as Assam, Tripura, Karnataka, Tamil Nadu, Punjab, Himachal Pradesh, Mizoram, Jharkhand, Telangana, West Bengal and Chhattisgarh are yet to formalise RERA rules despite being ready with draft rules. After the Act was notified on May 1, 2016, states were required to notify their final rules within six months ending October 31.

"New era begins as #RERA comes into force. Clock begins to tick for registration of projects by developers. #RERA promotes accountability, transparency & efficiency in the sector. Buyer set to be King. Promoter benefits from king’s confidence," Venkaiah Naidu, Union minister of urban development, housing and urban poverty alleviation, tweeted.

So far Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Bihar, Chandigarh and Orissa have finalised their rules. The government had notified the final rules for the five Union Territories without legislators, and these are seen as undiluted and were expected to be a model for other states.

"There’s clearly a vacuum situation right now. The aggrieved homebuyers in such states, though, are not left without any remedy; they can still approach consumer courts for redress of their grievances. It is either for the central government to convince the states to act quickly or the honourable court may either Suo Moto or on an application, direct a timeline within which the rules will have to be notified and authority gets appointed," said Sudip Mullick, partner at law firm Khaitan & Co.

"Under section 91the central government has powers to remove difficulties which arise in giving effect to the provisions of the Act. "The provisions of Section 91, its applicability and usage need a closer look," he said.

Despite several states yet to notify their rules, homebuyers are pleased the central government is going ahead with the implementation of RERA on Monday. However, they are still concerned about the dilution of these rules by various states.

"We thank the central government for ensuring that RERA comes in full force from May 1, 2017. It will bring in drastic changes for the better in real estate industry by eradicating malpractices and bringing complete transparency.

However, the dark patch in the whole process is in the way the states are diluting their Real Estate Rules in favour of developers by going overboard to please their developer friends. This has the potential to render RERA completely redundant if corrective steps are not taken forthwith," said Abhay Upadhyay, National Convenor of Fight For RERA, a pan-India homebuyers’ group.

Fight For RERA has termed state RERA rules of Orissa and Bihar as excellent set of rules that prove their commitment towards protecting the interest of homebuyers.

Realty developers are also optimistic that the rules in various states will be formalised soon as the work is almost over.

"While there are states that are yet to notify their rules, based on our interaction with the government, it’s a work in progress and we are optimistic that final rules in these states will be notified soon along with the appointment of the regulator," said Jaxay Shah, President of Confederation of Real Estate Developers’ Association of India.


Source : ET Realty

PMAY: Govt clears way for implementation of urban housing mission in Delhi

NEW DELHI: Clearing the way for the implementation of the urban housing mission in Delhi, Union housing minister Venkaiah Naidu on Friday approved signing of memorandum of agreement (MoA) between the housing ministry, Delhi Development Authority (DDA) and Delhi Urban Shelter Improvement Board (DUSIB).

The government launched its flagship Pradhan Mantri Awas Yojana (Urban)-Housing for All Mission by 2022 mission on June 25, 2015, but the Delhi government was yet to participate in the affordable housing mission.

However, the Lt. Governor of Delhi Anil Baijal in a meeting last month decided that DDA and DUSIB will sign the MoA as required under the PMAY(Urban) mission guidelines. The guidelines, required the Delhi government to sign the MoA, however, Naidu has now granted exemption in this regard, according to a government release.

The MoA requires the state governments to commit to comply with six mandatory conditions including amending the master plan, earmarking land for affordable housing, removing requirement of separate non-agricultural permission if the land falls in the residential zone, putting in place a single-window time bound clearance system for layout approvals and building permissions, providing additional FAR/FSI/TDRs and relaxing density norms for slum redevelopment and low-cost housing.

DDA and DUSIB will be the state level nodal agencies for implementing the in-situ slum redevelopment (ISSR) component of PMAY (Urban), while DDA will be the agency for credit linked subsidy component, affordable housing in partnership with public and private sectors (AHP) and beneficiary led construction (BLC).

A central assistance of up to Rs 1 lakh per beneficiary is being provided by the government under the ISSR component, Rs 1.50 lakh under AHP and BLC components and interest subsidy of 3% to 6.5% on housing loans of Rs 6 lakh to Rs 12 lakh under the credit linked subsidy component of PMAY (Urban).

The ministry of housing & urban poverty alleviation (HUPA) has so far approved construction of 1,875,389 affordable houses for urban poor, with an investment of Rs 1,00,466 crore and central assistance of Rs 29,409 crore.

Source : ET Realty

UP won't dilute RERA, Yogi assures NCR homebuyers

NOIDA: A delegation of homebuyers who have invested in various NCR projects returned with three key promises from a meeting with Uttar Pradesh chief minister Yogi Aditya Nath - an undiluted version of the Real Estate (Regulation and Development) Act in the state, a special grievance cell at the Noida Authority and a close scrutiny of persistent builder-buyer problems over the next three months.

Homebuyers said they were relieved, and optimistic about quicker redress of various problems they have been facing in NCR, particularly Noida, over the past few years, the worse flats running years behind the delivery date. Among those who met the CM was a group of investors in Jaypee's Wish Town project, where nearly 27,000 flats are way behind schedule. Jaypee recently disclosed a completion plan for the project after an FIR was filed on homebuyers' complaints. "We have been assured issues concerning Jaypee Wish Town would be addressed. We are relieved," Pramod Kumar, a Wish Town buyer, said.

Others welcomed what they described as the CM's "pro-buyer" stance as well as his assurance to them that the UP government would intervene to make builders complete apartments. Noida MLA Pankaj Singh, who helped set up the meeting, was also present.

A government spokesman in Lucknow said action would be taken against Noida Authority officials if they were found to be negligent in dealing with homebuyers' complaints.

Singh said, "Before assembly polls were held, various stakeholders had informed us about their problems. One of the key demands of the homebuyers was implementation of Rera. The CM told them he will work them to find solutions."

Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (Nefowa), said, "We have been assured of intervention by the CM." Nefowa has submitted 40 complaints about different projects to the CM office.

Annu Singh, president of Noida Estate Flat Owners Main Association, submitted a list of 27 projects in which buyers are facing problems. "We are pleased with the pro-buyer steps being taken by MLA Pankaj Singh. We have been assured by the CM pro-buyer action will be taken by the government," Annu Singh said.

Source: ET Realty 

Greater Noida to revise property rates

GREATER NOIDA : GNIDA on Wednesday started examining property rates ahead of possibly revising them.

The Authority held a preliminary meeting following the directions of the area’s chairperson, Dr Prabhat Kumar, last week, when he officially took charge of the reins of the Authority. The meeting on Wednesday, chaired by ACEO Vimal Sharma, was held to discuss whether land rates in Greater Noida can be revised. “The aim is to make the area more attractive to entrepreneurs and investors,” Sharma told TOI.

“We held a preliminary meeting on Wednesday with all departments. A report will be submitted by them within a week. Departments have been told to examine if land rates of any land use need to be revised, reduced, hiked or kept static. This proposal will be submitted to CEO Amit Mohan Prasad and the chairperson. All property rates including commercial, industrial, institutional, residential and group housing will be examined and new rates, if any, will be proposed,” he said.

Source : ET Realty 

YEIDA revives proposal for Greater Noida-Jewar airport Metro

GREATER NOIDA: With the reins of the UP government in new hands, Yamuna Expressway Industrial Development Authority (YEIDA) has decided to revive the high-speed Metro link project between Greater Noida and the proposed international airport at Jewar. In a meeting held last week, officials of YEIDA discussed the issue with Delhi Metro Rail Corporation and the latter is likely to revert to YEIDA within a week on whether the project and cost would be feasible.

The corridor was first proposed by YEIDA board in February 2014 and again in June 2015. In June 2016, the DMRC had told YEIDA that it was too early to prepare a techno-economic feasibility report (TEFR) for the proposed corridor and suggested that it be done after five years.

According to YEIDA officials, they decided to revive the project in order to provide connectivity to the rapidly urbanizing area.

The proposed 35-km Metro track will be aligned at the road level along the Yamuna Expressway. It will link the zero point of the Yamuna Expressway in Greater Noida to YEIDA’s proposed Jewar airport.

This track will also be linked to the under-construction 29.7km Metro corridor connecting Noida and Greater Noida. “We have asked DMRC to study the primary feasibility of the project along with the cost,” said Arunvir Singh, chief executive officer, YEIDA.

“DMRC will conduct an initial feasibility study and will let us know, after which we will take the project further and ask them to prepare a TEFR for the proposed project,” he said.

The proposed line is expected to not only provide a fast link between the two townships of Greater Noida and YEIDA, but also bring these places closer to the national capital by boosting connectivity.

According to officials, the cost for putting in place an elevated Metro track is estimated at nearly Rs 200 crore/km. By the same formula, the YEIDA

Metro should cost more than Rs 7,000 crore.

However, YEIDA has asked DMRC to study the feasibility and financial viability of running the Metro at the road level along the expressway.

This will bring down the cost to almost Rs 40-50 crore/kilometre.

“The population in Greater Noida and YEIDA is set to increase considerably. Besides, several new housing schemes are also in the pipeline. Considering that thousands of more people will come to reside in the area, the Metro link will prove to be very useful. It will also serve the several proposed residential, industrial and IT units along the expressway besides the proposed Jewar international airport."

On February 2, 2014, the YEIDA board proposed the Metro track to run along the Yamuna expressway between Pari Chowk in Greater Noida and Sector 22 in the YEIDA area.

On June 24, 2015, the then CEO of YEIDA Santosh Yadav decided to take the Metro track further up to Jewar. This track was proposed to be 38km long between Knowledge Park II in Greater Noida and Jewar area.

However, in October 2015, YEIDA once again changed the route of the proposed Metro alignment.

The new proposal linked a 20-km Metro corridor between the zero-point of the Yamuna Expressway in Greater Noida to YEIDA’s Sector 20.

Source: ET Realty 

PM to review infrastructure progress

NEW DELHI: Prime MinisterNarendra Modi is expected to set robust targets for infrastructure creation for 2017-18 after India saw an average growth of more than 30% across sectors last year, officials said ahead of a meeting on Tuesday where the PM will review infrastructure progress in the country and set targets for central ministries for this fiscal.

“In a comprehensive review meeting the PM will take stock of achievements in 12 infrastructure sectors in the last financial year and set higher goals for this year,“ a senior government official told ET.

According to the official, who spoke on condition of anonymity, six core infrastructure areas such as roads, railways, civil aviation and shipping will be reviewed in the first meeting while the progress in the remaining six social sectors will be reviewed later.

As in the past, Niti Aayog CEO Amitabh Kant will make a comprehensive presentation outlining the achievements in the sector and what needs to be done to fast-track development.

“Infrastructure creation is the topmost priority of the government and all efforts are being made to push and monitor development in key sectors,“ the official said.

The Prime Minister had said at similar infrastructure review meetings in the past that ministries need to work towards bringing about transformational change in India's creaky infrastructure and that incremental progress will not help. The outcome-based monitoring system, kick-started by Niti Aayog more than a year ago, helped central ministries achieve targets set for them.

The upcoming meeting of the Niti Aayog is likely to be attended by top central ministers of nodal ministries, along with secretaries and officials from the think-tank and the Prime Minister's Office.

Source- ET Realty 

Firm buying flat for own use can be treated as a consumer

While goods purchased or services availed for “commercial purpose” are excluded from the purview of the Consumer Protection Act, the term is not defined clearly hance the confusion about its interpretation. In a landmark ruling, the National Commission has clarified the legal position.

Case Study: A partnership firm called Classique, having its office in Goa, had booked a flat in Royal Palms in Mumbai. The flat admeasuring 1244 sqft was to be sold for Rs 61 lakh. Possession was to be given within two years.
The firm paid Rs 40,09,414 in installments and another Rs 1,51,000 toward allotment of parking. But the builder
The builder contested the case. It was contended that the complaint was not maintainable as it was a commercial transaction where the firm had booked the flat as an investment, so it cannot be considred a consumer.
The state commission observed that the claim for loss of rent established that the purchase was an investment for earning rent. The commission refused to accept the firm’s argument that the flat was meant for its partners. The complaint was dismissed.
Aggrieved, the firm challenged this order before the National Commission. In appeal it was observed that the complaint did refer to the flat being purchased as an investment, but there was nothing to show that the firm was engaged in the business of purchase and sale of flats. A mere averment that rent could have been earned cannot lead to an inference that the firm is engaged in real estate business.
Accordingly, by its order of April 18, the National Commission remanded it back to the state commission with a direction to decide the claim on merits. It also restrained the builder from creating any third party interest in the flat till the dispute was adjudicated by the state commission.
Impact: The interpretation here shows that commercial purpose would mean buying and selling or trading activity. So, a partnership firm or company which buys a flat would be a consumer if it is not involved in real estate business.

 failed to execute the agreement. The builder also did not obtain the occupancy certificate nor gave the possession. So the firm filed a complaint before the Maharashtra State Commission, seeking a direction to the builder to execute the agreement, hand over possession, and pay compensation for mental agony and loss of rent at Rs 20,000 per month.

Source : ET Realty 

Draft GST rules seek detailed paperwork

MUMBAI: The government is leaving no stone unturned to prevent GST leakage and to ensure complete cross-check of records. Detailed records are required to be kept not only by suppliers of goods or services (manufacturers or service providers), but also by intermediaries such as warehouse owners, transporters and agents.In addition to the goods sold, they have to also track stocks given as free samples or gifts.

“Even as concepts of manufacture or trading are no longer relevant under GST, the record-keeping requirements continue to be based on these lines. Rule 1(2), covering general record keeping, provides that accounts or records shall be maintained separately for each activity , including manufacturing, trading or provision of service. Therefore, the classification of these activities will continue even in the new regime though not relevant for the concept of supply which underlines GST,“ points out Badri Narayanan, partner at law firm Lakshmikumaran and Sridharan.

No deletion or overwriting of entries are allowed in registers, accounts and documents maintained for GST purposes.Incorrect entries, whether made erroneously or otherwise, need to be scored out under attestation and the correct entry is to be recorded. Where the records are electronically maintained, a log book of every edited entry is to be maintained, the draft rules state. Taxpayers can be asked to produce the trail of entries, such as during an investigation. “Justifying the rea sons for deletion or editing of entries, for something as innocent as punching errors, could be cumbersome,“ states a CFO of an FMCG. “The main purpose appears to be to ensure there is no GST leakage or misuse of law,“ adds Narayanan.

The draft rule on maintenance of accounts and records was one of the three drafts released into the public domain late on April 19. Public comments are invited on this draft and the drafts relating to advance rulings and appeals and revision by April 27.

The concept of obtaining an advance ruling, which continues under the GST regime, has been welcomed by India Inc and GST experts. A ruling can be obtained not just for a proposed supply of goods or services but also for a transaction that has already been undertaken. Advance rulings, which determine tax implications, enable taxpayers to take appropriate business decisions. However, the GST Act doesn't specifically provide for obtaining an advance ruling for determining the `place of supply', which may be a litigationprone arena. “Under the GST Act, an ad vance ruling can be obtained for determination of various issues, such as classification of goods or services, determination of the time and value of supply of goods or services, and admissibility of input tax credit. However, it appears that the Advance Ruling Authority cannot be approached outrightly for determination of the place of supply ,“ says Narayanan. GST is a destination-based tax -the `place of supply' determines whether a particular supply of goods or services will be liable for Integrated GST (IGST), State GST or Central GST. While, the place of supply is clear in case of physical delivery of goods, a host of litigation is expected when it comes to delivery of intangibles or even services.

Narayanan illustrates some grey areas. In case of a tour operator providing a South India package with accommodation, local sightseeing and travel -what would be the place of supply? Or for a money changer, which has agents in India for remitting money to residents in India -would their services be treated as being local in India or not?

Source : ET Realty 

Three-month deadline set for states to appoint real estate regulator

The Ministry of Housing and Urban Poverty Alleviation has notified the Real Estate (Regulation and Development) Act, 2016, in its entirety setting a three-month deadline starting May 1 for all state governments to appoint a Real Estate Regulatory Authority, issue the regulations and enforce the legislation.

Builders, of both new as well as ongoing projects (the ones that have not received completion certificate), will have to mandatorily register their project with the Authority within this period. The three-month deadline is also applicable to real estate agents who also have to register themselves with the Authority.

Terming the Act as the “most far reaching pro-consumer and pro-industry initiative,” Union urban development minister M Venkaiah Naidu said on Thursday that it is the responsibility of Chief Ministers of all states to ensure that the Act and other institutional infrastructure is in place by then or risk facing a backlash from the people referring to potential PILs in court against non-implementation.

Stating that 60 Sections of RERA were brought into force a year ago, Naidu added, “ The remaining 32 Sections of the Act have been notified last night. These include sections relating to registration of ongoing projects that have not received completion certificate and penalties for non-compliance which would be effective from first of next month.”

So far, only 13 states and union territories have notified rules under RERA while another 15 have prepared draft rules. There is no information about any progress from the three states of Goa, Manipur and West Bengal while the north eastern states of Sikkim, Arunachal Pradesh, Meghalaya and Nagaland have sought

legal opinion due to issues in the land-holding pattern. Similarly, only Madhya Pradesh has appointed a state-level Regulatory Authority so far. Twenty one states have either appointed an interim Regulatory Authority or are in advanced state of appointing an Authority while the rest have made no progress on this front.

Naidu had earlier in a meeting of housing secretaries and chief secretaries of all states warned the states against diluting their RERA rules to facilitate builders to the detriment of home-buyers. He had said that “any compromise with the Act will have serious implications.”

Source - Indian Express 

Ministry of Housing notifies remaining sections of RERA

MUMBAI: Ahead of the implementation date of May 1 for Real Estate (Regulation and Development) Act, 2016 (RERA), the government has notified remaining sections of the Act through a gazette.

The sections notified by the Ministry of Housing and Urban Poverty Alleviation include key measures such as registration of realty project and real estate agents, functions and duties of project promoter including compensation, insurance and title of the project, rights and duties of allottees.

The notified measures also include punishment for non-registration of projects and recovery of interest or penalty or compensation and enforcement of order, etc.

The notified section of 79-80 that deals with jurisdiction of the act has also been notified. “No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act,” said the notified section 80.

“It’s a positive step and shows the government’s commitment to protect the home-buyers’ interest. We now hope that all the state government will fulfill their part of their obligation as mandated by the Act and immediately notify rules and appoint authorities as this notification ends any speculation about extension of implementation deadline of May 1,” said said Abhay Upadhyay, National Convenor, Fight For RERA.

He hopes that the central government will now focus on dilution of RERA rules by state governments in favour of developers and take steps to get those rules revoked and fresh rules in line with central rules are notified.

The Real Estate (Regulation and Development) Bill was passed on March 10, 2016 after a long wait of 8 years. The Bill was introduced in Rajya Sabha by the UPA government on August 14, 2013 and was referred to the Rajya Sabha select committee on May 6, 2015.

The Real Estate (Regulation & Development) Act, 2016 (RERA) was notified on May 1, 2016. All the states are required to notify realty rules and establish the realty regulatory authorities and the appellate tribunals maximum by April 30 as the Act would commence its full operation from May 1.

Source : ET Realty 

RBI allows banks to invest up to 10% of REITs', InvITs' capital

MUMBAI: In a move to boost spending on infrastructure, the RBI on Tuesday allowed banks to invest up to 10 per cent of the unit capital of single Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

"It has been decided to allow banks to participate in REITs and InvITs within the overall ceiling of 20 per cent of their net worth permitted for direct investments in shares, convertible bonds/debentures, units of equity-oriented mutual funds and exposures to venture capital funds (VCFs)," a Reserve Bank of India notification said.

The apex bank said the permission was subject to the condition that banks will not invest more than 10 percent of the unit capital of a REIT or an InvIT.

"Banks should put in place a Board approved policy on exposures to REITs/ InvITs which lays down an internal limit on such investments within the overall exposure limits in respect of the real estate sector and infrastructure sector," the notification said.

Banks will also have to ensure adherence to the prudential guidelines on equity investments, classification and valuation of investment portfolio, Basel III Capital requirements for commercial real estate exposures and large exposure framework, it added.

In its first bi-monthly monetary policy review of the fiscal presented on April 6, the RBI had permitted banks to invest in REITs and InvITs in a measure designed to revive stalled infrastructure projects.

Source: ET Realty 

Buying a flat? Here's why you should wait till May 1

NEW DELHI: If you are planning to buy a flat, now should wait till May 1, when the Real Estate (Regulation & Development) Act (RERA) comes into force. The new law is going to reshape the entite real estate sector with the transparency and accountability it brings. The RERA will benefit the buyers in a huge way.

Below are the major provisions of the new law which will rein in errant builders:
1. The RERA makes it mandatory for a state to establish a State Real Estate Regulatory Authority. This government body could be approached for redressal of grievances against any builder.
2. Every ongoing and under-construction project is supposed to come under the regulator's ambit. Registration is mandatory for all commercial and residential real estate projects where the land is over 500 sq m or includes eight apartments. Failure to do so will attract a penalty which may be up to 10% of the project cost, and a repeat offence could land the developer in jail.
3. The developer will have to place 70% of the money collected from a buyer in a separate account to meet the construction cost of the project. This will put a check on the general practice by a majority of developers to divert the buyer's money to start a new project, instead of finishing the one for which money was collected. This will ensure that construction is completed on time.
4. Buyers of apartments which are typically offered for sale before the launch of the project often get ensnared. But not any more. Under the Act, every such phase will be considered a standalone real estate project, and the promoter will have to obtain registration under this Act for each phase separately.
5. The RERA makes it mandatory for developers to post all information on issues such as project plan, layout, government approvals, land title status, sub contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to the consumers.
6. The current practice of selling on the basis of ambiguous super built-up area for a real estate project will come to a stop as this law makes it illegal. Carpet area has been clearly defined in the law.
7. Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer.
8. The maximum jail term for a developer who violates the order of the appellate tribunal of the RERA is three years with or without a fine.
9. The buyer can contact the developer in writing within one year of taking possession to demand after sales service if any deficiency in the project is noticed.
10. The developer cannot make any changes to the plan that had been sold without the written consent of the buyer. This puts paid to a common and unpopular practice by developers to increase the cost of projects.

Source: ET Realty 

Over 1 crore households in urban India without bathrooms: HUPA Ministry

NEW DELHI: Over 1 crore households in urban areas of the country don't have bathrooms, according to data provided by the Ministry of Housing and Urban Poverty Alleviation (HUPA).

Under the Centre's flagship programme Swachch Bharat Mission, the government aims to make India open defecation free (ODF) by 2019.

So far, 31.14 lakh individual toilets have been constructed under the program, while 1.15 lakh community and public toilets have been constructed with the assistance of the government.

The total number of households in urban areas is about 7.8 crore.

"Nearly 1 crore or about 13 percent of the total households in urban areas do not have latrine facility -- neither access to public latrine nor do they have toilets within their premises," according to the data provided by the HUPA ministry in Parliament recently.

While 74.64 lakh houses use enclosures without roof, 18 percent or about 1.42 crore households do not have a separate kitchen in their houses.

It indicates that members of these households are exposed to pollution which may lead to severe health problems.

Under a component of Pradhan Mantri Awas Yojana (Urban), the households lacking in facilities like kitchen, toilet or bathroom may get central assistance of upto Rs 1.5 lakh for construction of these amenities.

source-Et Realty

Yamuna Expressway authority cancels five housing projects of Jaypee Infratech

NEW DELHI: In a major blow to Jaypee Infratech, the Yamuna Expressway Industrial Development Authority (YEIDA) has cancelled five housing projects of the developer in Sports City East on allegedly selling the projects without getting building plans approved, according to a Hindustan Times report.

The cancellation of the proposed projects in sector 22B spread over a 70-acre land, is set to affect around 300 home buyers.

"Selling flats without getting maps approved amounts to cheating so we cancelled the projects,” said Arun Vir Singh, chief executive officer of YEIDA was quoted as saying in the report.

A cheating case has also recently been registered in Dankaur police station against the firm's managing director, Manoj Gaur, joint managing director Sameer Gaur, senior chief manager Rajiv Talwar and chief manager Manoj based for a delay in handing over flats in 'Sports City' project.

Source-Et Realty

Govt reiterates RERA to be implemented on May 1, urges states to expedite process

"RERA will come into full effect from 1st May, 2017, and we request the states to expedite the process" said Rajiv Ranjan Mishra, joint secretary, ministry of housing and urban poverty alleviation at the two-day national review and consultation meet organised in Delhi on the Pradhan Mantri Awas Yojna (Urban).

All the states are required to notify real estate rules including the general rules and the agreement for sale rules and establish the real estate regulatory authorities and the appellate tribunals maximum by April 30, 2017.

However, only four states of Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh and six Union Territories have notified the final rules so far.

The government had also warned states of a serious situation of vacuum arising if necessary institutional mechanisms for the real estate regulatory Act were not put in place before the deadline of May 1 this year.

In a two-page letter to all the chief ministers of states on February 9, minister of HUPAVenkaiah Naidu said, “Real Estate Act is one of the most important reforms for the sector, which would bring benefits to all stakeholders. It is therefore, my sincere request to please bestow your personal attention to this matter so that the Act is implemented in time and in the spirit with which it was passed by the Parliament”.

The Real Estate (Regulation & Development) Act, 2016 was notified by the ministry of HUPA on May 1 last year for the six Union Territories without legislature. The HUPA rules were also supposed to act as the model rules for other states.

NEW DELHI: The government on Thursday has clarified that the much-awaited real estate regulatory Act (RERA) will come into full effect from May 1 and has urged states to notify the rules and set up the regulatory authorities in the set time frame.

Source : ET Realty 

45 cities participate in 3rd round of Smart City challenge

NEW DELHI: A total of 45 cities have participated in the third round of Smart City challenge, of which 40 will be selected to be developed as smart cities.

The names of 40 new cities, expected to be announced by June end, will take the total smart cities count to 100.

"The mission continues to grow. 45 cities participate in Round 3 of the Smart City Challenge," said a tweet from the ministry of urban development.

The government launched its flagship '100 Smart City' mission on June 25, 2015, and announced the first list of 20 cities in January last year. It then offered a fast-track window for 23 cities rejected in the first round to upgrade their proposals, out of which 13 cities were selected in May. The government in the second round announced the names of 27 more cities to be made smart in September last year.

The government has earmarked Rs 48,000 crore for the development of these cities.

Each selected city will be given Rs 500 crore over a period of five years by the Centre with the respective states expected to make the matching contribution.

The government has so far approved smart city plans worth Rs 1.33 lakh crore for the 60 cities.

The ministry of urban development is also preparing a report card on its Smart City mission as the scheme is set to complete two years of its launch this June.

It is compiling data under various heads, like the number of projects completed and those being implemented.

Source - ET Realty 

Delhi Metro to foray into housing, 550 premium flats to be up for sale soon

NEW DELHI: The Delhi Metro Rail Corporation is all set to venture into the residential real estate market and will soon put up over 500 flats, in the Rs 60 lakh to Rs 1 crore range, for sale.

A senior Delhi Metro Rail Corporation (DMRC) official said the Metro has initiated the process on this front and people will be able to book a flat, which will come up in Janakpuri and Okhla area, in a month or two.

Around 460 flats would be built in Janakpuri while 90 in Okhla, tentatively within two years.

Plots have been identified, however, construction work has not yet started. Metro will soon make a formal announcement of the project.

The official said DMRC will follow the model of Delhi Development Authority (DDA) in selling the apartments, which essentially means allotment will be done through a lottery.

Fifteen per cent of the flats, which will be a mix of 2- BHK and 3-BHK, would be reserved for the economically weaker section, metro said, adding that the brochures are likely to be out within a month.

This will be the metro's maiden foray into the residential real estate market. It is already into property development and also has a number of staff quarters.

Source - ET Realty 

At 18%, GST rate to be less taxing for most goods

NEW DELHI: A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposedgoods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment. Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council will take a final call at its next meeting on May 18-19. GST, India’s biggest tax reform in decades, is expected to be rolled out on July 1.

The government is keen to avoid price shocks following the switchover to GST and the fitment exercise will be guided by this principle. The GST legislation contains an anti-profiteering clause to ensure that industry passes on tax benefits toconsumers by lowering prices where applicable.

GST seeks to replace central taxes including central excise, service tax and cesses along with state taxes including value-added tax, purchase tax and entertainment tax by a single levy, thus creating a unified national market. Moreover, industry will be eligible for seamless input tax credit that should also drive down prices as tax embedding through imposition of tax on tax inflates the final price of a product.

By slashing costs and boosting efficiency, GST will result in GDP growth getting a 1-2 percentage point lift, according to experts.

Final fitment should be based on effective tax rate to lower tax burden on consumers, they said.

"In most consumer products, excise duty is applied on MRP (maximum retail price) less abatement of 30-35%," said Pratik Jain, leader, indirect tax, PwC. "So, if MRP is 100, effective excise duty works out to 8-9%. When you add a standard VAT of around 13%, the effective rate works out to 21-22%. One would hope that most of these products, which include most FMCG (fast-moving consumer goods) and consumer durables, would be subjected to 18% GST and not 28%. If not, it would increase the tax burden on consumers and intended benefits of GST in terms of lower prices and increased manufacturing would be difficult to realise."

Source : ET Realty