No quick stamp duty hike: District Magistrate

There will be no stamp duty hike in Gautam Budh Nagar any time soon, according to district magistrate N P Singh.

The DM's clarification to TOI on June 29, came days after the Haryana government's decision to cut circle rates in Gurgaon by 15%, a big relief to both the real estate industry and homebuyers in Noida and Greater Noida.

Earlier this year, the state government said it would affect a stamp duty hike of 2% from 5% to 7% in Noida and Greater Noida from April 1. The announcement was followed by a series of protests from homebuyers, leading to the stamp duty hike being delayed to July 31 to allow the maximum number of buyers to get their apartments registered. Buyers have been rushing to get their apartments registered since April to skirt the hike.

However, on June 29, Singh told TOI, "We have no information about a hike in stamp duty here yet."

With the real estate industry going through a slump in recent years, a hike in stamp duty was being seen as a deterrent to sales. The buyers too were upset with the impending hike.

Indrish Gupta, co-founder, Nefowa, (Noida Extension Flat Owners Welfare Association), said buyers were already under pressure. "They are paying rent and EMI; the increase in stamp duty will be an additional burden. Most builders have not been able to deliver apartments on time. There have been other delays because of land acquisition and NGT issues. Buyers should get a reprieve from an additional increase in a stamp duty," Gupta said.

Deepak Kapur, president, Credai western UP, said an increase in stamp duty at this time would not have been in the best interests of the industry.

SOURCE: magicbricks.com

Will UP follow Haryana, slash circle rates?

Haryana's move to slash circle rates in Gurgaon has put the onus on Uttar Pradesh to take a similar correctional step in Noida, the other city where the wind has been knocked out of the realty market.

So far, the UP government has given no indication it is considering a circle rate cut; on the contrary, after raising it last year, it is reportedly planning on doing so again. UP has also approved an increase in stamp duty - from 5% to 7% - though it has delayed its implementation with an eye on the assembly poll next year. Both these levies would substantially increase the burden on homebuyers, when they come into force.

Circle rate is the minimum value at which a plot, house, apartment or commercial property is sold, and determines both stamp duty a buyer has to pay and capital gains tax a seller is charged. Getamber Anand, president of real estate body Credai, said the UP government should reduce circle rates to increase transactions in the market and any move to increase stamp duty would be regressive, as it would only stifle transactions, which are already sluggish because of the slowdown.

High circle rates are badly affecting first-time buyers. Most projects in Noida under construction and up for possession in the next one year were sold at Rs 2,800-3,500 per sq ft between 2010 and 2012. Thousands of apartments were launched in sectors 74 to 79 and Sector 137 during this period.

But the circle rate in sectors 74 to 79 is Rs 4,275 per sq ft. The value of a 1,500 sq ft house at Rs 3,200 per sq ft in 2011 would have been Rs 48 lakh. But if a person who bought this flat were to get possession today, the government will take its value to be Rs 64,12,500 (based on the existing circle rate) to calculate stamp duty. On covered car parking, too, UP has fixed a minimum value of Rs 3 lakh to levy stamp duty. This will force a buyer to pay more as stamp duty.

Not this only, both buyer and seller may get phone calls from the income tax department to pay income tax on the difference of the actual cost at which the customer bought the house and the government valuation of it - in this case, on an amount of Rs 16,12,500. The I-T department not only considers the amount as income for the seller, but also treats it as undisclosed income of the buyer too.

In the case of the seller, tax will be levied at 20% as capital gains while the buyer will be penalised at the rate of 30%, as this will be treated as his undisclosed income. "In certain situations, this could become a contentious issue where fair market value is lower than the value adopted by stamp valuation authority. In such cases, taxpayers can put forward their case to tax authorities along with necessary documentation to substantiate their position," Vikas Vasal, partner (tax) at KPMG, India, said.

Naturally, as Anand points out, a notice from the I-T department would send shudders down anybody's spine, marking this rate mismatch the biggest dampener for any transaction in the sector and prolonging the slowdown.

Deepak Kapoor, director of Gulshan Homz and president of Credai (western UP), said a first-time buyer has to also pay a service tax of 4.06% on the sale price. The tax department marks up 27% of sale value of a house as being created through services rendered during the course of construction. Therefore, they charge 15% service tax on 27% of the value of the house, prompting tax experts to argue that the government should not levy stamp duty on the services part of a property.

Even those who buy in the secondary market-that is from a person who has already taken possession and got the property registered on his name-pay tax on more than the transaction value of the property. There are a number of projects in Sectors 74-79, 119, 120, 122, 137, 143 among others that are quoting at less than circle rates. In many cases, the difference in value through this on a 1,500 sq ft property comes to around Rs 10 lakh.

SOURCE: magicbricks.com

Draft rules: Builders may have to pay 11% interest for delayed projects

Developers may have to pay 11.2 per cent interest to buyers for delay in handing over apartments and homes, according to draft rules unveiled by the government, a step seen as bringing relief to homebuyers reeling under the impact of delayed projects and mounting loan liabilities.

The rules also say projects without a completion certificate will have to register with the Real Estate Regulatory Authority, to be set up in states/UTs within three months of the rules being notified. Builders will have to give information on completion date of a project, size of flats and promised facilities, state the draft rules, published to seek public comments till July 8.

The draft real estate rules have been formulated by the housing and urban poverty alleviation ministry within two months of some sections of the Real Estate (Development and Regulation) Act, 2016, coming into force on May 1. The interest rate compensation has been proposed to be 2 percentage points over and above the prime lending rate (PLR) of State Bank of India. Normally, a home loan from SBI is pegged at 0.20 percentage points to 0.80 percentage points over and above the MCLR (marginal cost of fundbased lending rate) at 9.15 per cent, which is the PLR for a retail loan. That means, rates for compensation would be 11.2 per cent as against the home loan rate of 9.35 per cent to 9.95 per cent.

Any violation such as delay in offering possession, increase in the size of apartments, change in layout and construction of additional towers in a project without taking consent from 70 per cent of the allottees can lead to cancellation of registration. In such a situation, the authority can take any decision, including getting the project completed by an external agency with the consent of the buyers' association.

TOI had reported on June 25 that the draft rules provided a "compounding" fine that builders can pay to escape imprisonment if they violate a ruling by the regulator. Developers said if the rules are applied on ongoing projects the sector will be hit severely and there could be further delay. President of the Confederation of Real Estate Developers' Associations of India, Getamber Anand, said all unfinished projects, which were launched before 2012, can be termed as defaulters and under the draft rules, if buyers demand their money back, developers will have to return at over 11 per cent rate of interest.

As real estate is a state subject, each state has to frame its own rules on the basis of the regulation approved in their respective assemblies. The state governments will have to frame their own rules within six months of May 1, when the Act was notified. The rules will come as a great relief to home buyers as this would be a step towards forcing developers to complete projects as soon as possible.

SOURCE: ETRealty.com

SLASHED CIRCLE RATES TO BOOST REALTY IN GURGAON

       Gurgaon, more popularly known as the millennium city, has been one of the most prominent regions in NCR’s realty sector. The kind of growth that it had witnessed during the last one decade kept the buyers active. Booming infrastructure and rapid price appreciation kept the investors busy. Although, this case study took a backfire, and for the last couple of years the demand for property has become stagnant and prices hitting a new record low. But the kind of appreciation it had once witnessed, the drop in prices was still not enough to lure the customers back into the market. In a move, that now brings a ray of hope for the revival of Gurgaon’s realty market, the state government has approved the circle rate cut for 2016-17 by as much as 15 percent with few areas to get 10 percent deduction as well.

“A drop in circle rates is directly proportional to decrease in property prices, and as property prices fall, the demand for the property plays an inverse relation. Falling property prices help in attracting end users more than investors, and it is crucial for Gurgaon’s realty sector to revive. The infrastructure is very sound and now with prices lowered, we’ll witness the comeback of buyers”, avers Kushagr Ansal, Director, Ansal Housing.

Realty sector in Gurgaon has been going through a lull phase, and it is also for the first time that circle rates have been reduced in the corporate hub. For the last two financial years, the rates were not reduced that resulted in negative buyers’ sentiments and even the developers’ fraternity was pushing the government to offer a rate reduction this time. “When the circle rates were higher, it was denting the market sentiments as even the taxes were to be paid on the basis of the circle rates. Even during resale, buyers suffered the high capital gains tax, as circle rates were beyond the market rates. As a result, no fresh buyers were visible and even resale was becoming out of question. With this move, practical pricing will return to Gurgaon that will help in pulling back the lost momentum”, explains Rakesh Yadav, Chairman, Antriksh India.

The state government has provided the highest relaxation in private colonies, HUDA sectors and other residential colonies falling under the older city. For instance, rate of residential property registrations from Sectors 58 to 113 will get reduced from 3,000 per sq. ft. to 2,550 per sq. ft. Commercial properties in the same regions will get registered at 85,000 per sq. ft. from 1,00,000 per sq. ft., earlier. For the HUDA sectors, the floor rate has also been reduced from 4,500 per sq. ft. to 3,850 per sq. ft. The city also has eight group housing societies where the rate has been reduced from 3,800 per sq. ft. to 3,250 per sq. ft., whereas for commercial, the rate has come down to 7,450 per sq. ft. from 8,800 per sq. ft. This rate cut is also to be implemented for industrial sectors. Once the rate cut gets implemented, circle rates of chief residential regions like DLF Phase 2, 4 and 5 will drop to 61,200 per sq. yd. from 72,000 per sq. yd. earlier. Likewise, at DLF Phase 1 and Sushant Lok, rates will get reduced to 65,450 per sq. yd. from 77,000 per sq. yd. “As the rate cut effect gets operational, buyers’ sentiments will improve significantly. The overall cost is likely to come down as these rates are also the basis of tax calculations which indirectly pinch a customers’ pocket. Earlier, buyers were forced to pay additional stamp duty and capital gains tax on the differential values as well, that resulted the buyers to shell out extra amount. This move will thus, eradicate the extra payment that buyers were making which in turn will allow them save money and invest elsewhere on property buying”, elucidates Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz.

Commenting upon how well the Gurgaon realty market might shape up, post this decision, Vikas Sahani, CMD of Property Guru concludes, “Several thousand units are lying vacant in Gurgaon with no takers at all. The demand for property had come to a standstill as prices till last few years were roaring. With this move, prices will get reduced and become realistic, thus allowing the properties to cost much less to the buyers. The effect on demand will be prominent till the next quarter as we’ll also have festive season around the corner. End users as well as investors will become active again that will help in picking up Gurgaon’s realty prospects for future.”

Now, floor safety nod from IITs must for builders

The Greater Noida Industrial Development Authority will soon make it mandatory for developers to seek a floor-wise safety certification from IITs for under-construction buildings in Greater Noida and Noida Extension. The stricter construction norms are being introduced as a measure to ensure that buildings, especially highrises, can withstand earthquakes, said officials.

According to GNIDA officials, the safety certifications will be based on the National Building Code of India and all builders will have to submit a report to the authority after the IIT clearance in order to continue construction. Assistant CEO of GNIDA, P C Gupta, said, "The decision has been taken unilaterally in a recent board meeting." The notification for this will be issued soon, he added.

The decision will affect over three lakh apartments in Noida Extension and Greater Noida that are in different stages of construction and completion. So far, the norm was for all builders to seek a structural safety clearance before starting construction and after completing the project to get completion certificates from GNIDA. Now, safety clearances will have to be taken for every floor.

According to GNIDA sources, the measures are being adopted in Noida Extension and Greater Noida as a number of highrises clutter the skyline here. The entire region falls under Seismic Zone 4, which makes it prone to earthquakes. The spate of quakes in last year that shook NCR has also put the lens on whether the quality of constructions here is enough to resist stronger earthquakes.

The buyers' associations have welcomed the news. "Any initiative which is pro-safety and pro-buyer is welcome. However, such approval and clearances should have a direct impact. There is a need for supervision on the building process by the authority," Indrish Gupta, co-founder of Noida Extension Flat Owners Welfare Association said.

In response to the initiative, the builders' association, Credai, said the move is welcome as long as it does not delay construction process. "This seems a buyers' friendly move from authority but we have to check that this should not hurt the proposed deadline of the projects. The industry is already going through phase of project delays and I wish this should not add the worry of developers body," said Suresh Garg, secretary, Credai, western UP.

SOURCE: magicbricks.com

PM Narendra Modi launches Smart City projects

Making a strong pitch to consider urbanisation as an opportunity to mitigate poverty and not as a problem, Prime Minister Narendra Modi on Saturday said cities have to be strengthened through comprehensive and inter-connected approach combined with increased public participation.

Addressing a gathering here after the launch of projects under government's flagship Smart City mission in 20 cities across the country, he said, "There was a time in our country when urbanisation was considered a big problem. But, I feel differently. We should not consider urbanisation as a problem, but consider it as an opportunity."

"People in the economic field consider cities as a growth centre.... If anything has the potential to mitigate poverty it is our cities. That is why people from poor places migrate to cities, as they find opportunities there.

"It is now our responsibility to provide strength to cities so that it can mitigate the maximum poverty, in the shortest time, and adds new avenues for development. It is possible as it is not a difficult task," he said.

As the Prime Minister launched 14 smart city projects in Pune, and initiated 69 other works in other smart cities in the country, he made a plea for working in a comprehensive, inter-connected and vision-oriented manner and not in piece-meal.

"There cannot be a transformation as long as we take things in bits and pieces. We need to adopt a comprehensive, inter-connected and vision-oriented approach," he said.

Modi added that every city has a distinct identity and the country's people "who are the smartest" should decide on how to develop urban spaces.

Stressing that the spirit of participative governance is vital, he said people of the cities have to decide about the development of their urban spaces as these decisions cannot be taken by people sitting in Delhi.

He stressed on increased public participation in deciding the course of development of smart cities and called for intense competition among cities to develop them as modern centres of growth.

"If we consider it as a problem, our approach to address it would be the same, but if we consider it an an opportunity we would start thinking differently," he said.

Modi also took a veiled dig at the previous Congress governments, alleging that while they took the country on the reverse path, his government was finding new avenues to move forward.

Modi said smart cities should not be seen as a fancy concept since the mission is meant for ensuring availability of basic services to people though infrastructure including houses for urban poor in a comprehensive manner.

He referred to extensive use of digital technology in the smart city plans for improving the quality of governance and public services.

Expressing satisfaction over citizen participation in preparation of smart city plans, he said, over 25 lakh people have given serious suggestions to the government, which need to be taken seriously.

"Earlier competition was being run on who was left behind and who are poor. Ways were being found to move backwards. This is a government which is running a competition for finding ways to move forward," Modi said .

The Prime Minister said it was not as if no work was done earlier or governments did not spend budgets, but wondered how some countries surpassed India in a short period despite attaining independence after it.

"I keep asking this question to myself and wonder. I discuss this with people and analyse old experiences.... if anyone is the smartest it is the citizen of the country.

"If the strength of 125 crore citizens is put to good use and their skills harnessed, they can do wonders. Then one does not require governments, the world will move faster on its own," he said.

Modi said that is the reason why this smart city concept was evolved through public participation and stressed that if people are empowered and involved in participatory development the country would develop faster.

He urged people to rise to the challenge for improving urban areas and said the era of competition among cities and towns has come to stay.

In his 35-minute address at the Shiv Chhatrapati Sports Complex, the Prime Minister while referring to the "changing" attitudes said gone are the days when the central government was looked as a giver of funds, as it was now being looked at as a source of ideas.

Elaborating, he said that in all the recent surveys, Swachh Bharat Mission was ranked as the most popular of government'ss initiatives since the idea of sanitation appealed to people.

Modi launched the flagship Smart City Mission into implementation mode with the launch of 14 projects of Pune's Smart City Plan, a year after he set off the programme by releasing its guidelines.

He said urban spaces have to focus on solid and liquid waste management,

The Prime Minister also launched "Make Your City Smart" contest inviting people to come out with designs for street, junctions and open spaces and a "Smart Net Portal" which is a net based platform for sharing of ideas and sourcing of solutions for smart city development.

Minister of Urban Development M Venkaiah Naidu said that the smart city projects launched today were the first shoots of urban renaissance taking place in the country as a result of paradigm shift in the approaches to urban development ushered in by the government. He said what is happening in Pune today was "historic".

"It is a turning point in the country's history. We have heard about cultural renaissance, but under Prime Minister Narendra Modi an urban renaissance is taking place," he said.

Naidu said the the journey towards much desired urban transformation has begun in a 'Team India' spirit with the collective effort of people, urban local bodies and state governments.

"This marks the beginning of the much-needed urban transformation," he said, lauding Modi's efforts whom he described as a "reformer, performer and transformer".

Chief Ministers of Andhra Pradesh, Odisha and Rajasthan briefed Modi via videoconferencing on the cities in the respective states selected for development under the project.

Maharashtra Governor Ch Vidyasagar Rao, Chief Minister Devendra Fadnavis, Unions Ministers Venkaiah Naidu, Babul Supriyo and Prakash Javadekar, Maharashtra Minister Girish Bapat were present on the occasion.

Fadnavis said smart cities initiative has taken care of the poor and stands for inclusive governance that will transform cities.

SOURCE: ETRealty.com

 

Floor safety nod from IITs must for builders in Gr Noida

The Greater Noida Industrial Development Authority will soon make it mandatory for developers to seek a floor-wise safety certification from IITs for under-construction buildings in Greater Noida and Noida Extension. The stricter construction norms are being introduced as a measure to ensure that buildings, especially highrises, can withstand earthquakes, said officials.

According to GNIDA officials, the safety certifications will be based on the National Building Code of India and all builders will have to submit a report to the authority after the IIT clearance in order to continue construction. Assistant CEO of GNIDA, P C Gupta, said, "The decision has been taken unilaterally in a recent board meeting." The notification for this will be issued soon, he added.

The decision will affect over three lakh apartments in Noida Extension and Greater Noida that are in various stages of construction and completion. So far, the norm was for all builders to seek a structural safety clearance before starting construction and after completing the project to get completion certificates from GNIDA. Now, safety clearances will have to be taken for every floor.

According to GNIDA sources, the measures are being adopted in Noida Extension and Greater Noida as a number of highrises clutter the skyline here. The entire region falls under Seismic Zone 4, which makes it prone to earthquakes. The spate of quakes in last year that shook NCR has also put the lens on whether the quality of constructions here is enough to resist stronger earthquakes.

The buyers' associations have welcomed the news. "Any initiative which is pro-safety and pro-buyer is welcome. However, such approval and clearances should have a direct impact. There is a need for supervision on the building process by the authority," Indrish Gupta, co-founder of Noida Extension Flat Owners Welfare Association said. In response to the initiative, the builders' association, Credai, said the move is welcome as long as it does not delay construction process. "This seems a buyers' friendly move from authority but we have to check that this should not hurt the proposed deadline of the projects. The industry is already going through phase of project delays and I wish this should not add the worry of developers body," said Suresh Garg, secretary, Credai, western UP.

SOURCE: ETRealty

SDMC okays 180 building plans in 2 months

The SDMC has sanctioned 180 building plans in past two months after the process of sanctioning building plans was digitised and simplified into a single window clearance system in the month of April by the civic body.

Officials from building department claim digitising the system is attracting more people to follow the procedure.

SDMC mayor Shyam Sharma said in past to sanction a single building plan the department used to take months but in past two months the number of plans sanctioned by corporation has gone up by a big margin.

Sharma further added that this system will also help in curbing illegal builders across its jurisdiction. "The capital is facing issue of illegal builder mafia and this is the first step to curb illegal activities as we will have a record which the department can cross check while identifying illegal construction," the mayor added.

Officials said the online system for building plan approval has a common application form which people needs to fill and no personal visits to office is required. "People complained that they have to make several rounds to get a building plan approved. Now, residents can track the status of their application. The money has to be deposited online so it leaves no space for any kind of corruption. The number of procedures has reduced and multiple affidavits have been converted in to a single affidavit. Also, the list of architects and structural engineers is available online which leaves no space for any confusion," said an official.

SOURCE: magicbricks.com

SEBI MAKING REIT ROUTE EASIER FOR REALTY

        With the dawn of Affordable Housing, Housing For All and Smart Cities Mission, demand for property is projected to multiply in the course of next few years. There is no denying in the fact that today, the realty sector of India is facing a strong cash crunch and dampened investors’ confidence. The failure of analysing real demand, improper infrastructure, saturation of Tier 1 cities, property price escalation, stringent FDI norms and absence of a regulator in the sector had caused real estate in India to hang by a thread. Thus, the projects that were launched earlier and those that are on verge of getting ready, or have delayed, has been the work without much supervision; as a result, failing to impress today’s market. Whereas, the plans of today will blossom tomorrow and it is crucial for the government to provide much needed support to revive the sector. Although, the government over the last couple of years has brought in several measures to ease the ways of conducting business in the Indian real estate sector that will help the demand to grow in near future. With the Securities and Exchange Board of India (SEBI) relaxing norms for REITs for investment in realty sector, the cash crunch problems will be answered and hopes will be high for a better demand of property in future.

Real Estate Investment Trust (REIT) is a company that owns or finances income-producing real estate. Much like mutual funds, REIT provide investors with all types of regular income streams, long-term capital appreciation and diversification. This tool allows anyone to invest in portfolios of large scale properties, by way to investing in stocks. The stockholders of REIT earn from the income produced without having to own or finance a property. Recently, the Budget Session 2016-17 had announced the evasion of Dividend Distribution Tax (DDT) from the income arising out of REITs, thus making it a more lucrative deal for the investors. SEBI, on the other hand, has increased the proportion of holdings for under-construction properties. Adding further, SEBI has also proposed changes that would make it easier for eligible offshore fund managers to relocate to India, plus allowing them to register as portfolio managers or as investment advisors. “The investment cap of REITs has been increased from 10 to 20 percent for under construction projects. Indian realty sector is pretty much starving and REIT will here provide a much needed alternate route of fund raising and attract several small and medium level investors in the sector. With plans to upgrade Indian infrastructure already laid, REITs might serve as a chief instrument in years to come”, explains Vikas Pundir, CMD, SKB Group.

Also agrees Kushagr Ansal, Director of Ansal Housing, as he says, “The REITs route has been eased enormously over the last few months. Removing DDT from the income earned through REITs and now increasing the investment cap will surely boost the investors sentiments. But, with the promise of high investment and returns, comes greater risk as well. If a project gets delayed, the chances of funds getting stuck are very high. Although, RERA has now become an Act and will now look into timely completion of projects. If Single Window Clearance System gets operational Pan-India, investors will feel more secured while investing with a long term vision.”

Indian residential real estate sector has plans to deliver over 7,50,000 units in the next 4-5 years with commercial real estate quickly gaining momentum as well. Thus, there are a wide variety of options available for investors along with a huge scope of returns. “At present, there is almost 250 million sq. ft. of office space that is eligible for REITs and if even 50 percent of these get listed, there will be a total REIT listing of around Rs. 1,34,000 crores. InvITs have also started to make rounds with SEBI recently approving two out of the four applications for the same. Infrastructure in India is soon to take a giant leap with lots of funds allocated for Smart cities mission and Housing for all. With so much real estate in pipeline, REITs will perform successfully”, avers Ankit Aggarwal, CMD, Devika Group.

“REIT is a concept which has been followed by several countries abroad, more particularly in the realty sector. Considering the results of REIT in those countries, even Indian government has introduced it here. REITs are to work under the control of SEBI which earlier had some tough regulations. However, now allowing the investments in under-construction projects, it will prove to be a game-changer. Also, SEBI has removed the restrictions on SPVs, who are now allowed to invest in the holding & assets of any other SPVs. Therefore, the realty fraternity definitely welcomes this step and hopes that it will boost the sector’s pace in near future”, elucidates Ashwani Prakash, Executive Director, Paramount Group. Like REITs, Infrastructural Investment Trust (InvIT) is much like mutual funds, that enables direct investments of small amounts of money from individuals or institutional investors with a promise of small amounts of returns. Even InvITs is rapidly gaining momentum with several institutional investors showing keen interest.

Concluding on the chapter and elaborating on how REITs and InvITs will shape up the Indian realty sector’s future, Vikas Bhasin, MD of Saya Group says, “The government is leaving no stones unturned to pick up the country’s realty sector and present it on the global map. Easing ways of doing business, attracting FDI and appointing instruments such as InvIT and REIT to boost the cash flow in the sector are a proof of the eagerness shown by the government towards this sector’s success. It is evident that there is a massive fund crunch in the sector with projects getting delayed; and to fight it out, government is working in two ways; boosting investors’ confidence by making entry’s and exit’s easy and bringing policy reforms to enhance transparency. Once REITs and InvITs become fully operational, this sector won’t remain cash starved, plus offer returns to the investors, better then any other country due to the large scale production that is present here.”

For 600 NRIs, realty dream turns sour

Virendra Jain, an NRI businessman based in the US, was in India in 2010 for his daughter's wedding when he came across a newspaper advertisement about a real estate project promising assured returns.

Upbeat about the growing Indian economy, Jain invested Rs 60 lakh in commercial real estate project Spire Edge of AN Buildwell in Manesar hoping to get fixed rental income and return to India.

But his dream of returning to his motherland with guaranteed fixed income has been dashed in a long-drawn legal battle with the developer. He curses his decision to invest in real estate in India and is now forced to make several unscheduled trips to this country to pursue his legal fight against the developer.

"I will now think several times before finally returning to India and make any investment in this country," said Jain. Jain is not alone. There are over 600 NRI investors who are struggling to get their property several years after investment in the Spire Edge commercial project that was launched in 2008.

"We never thought that some people could cheat us in a place like Manesar, barely 50 km from the national capital, and no action will be taken against the accused," said Pradeep Sharma, another NRI investor based in Singapore, who had invested Rs 55 lakh to purchase commercial space in the project.

He claimed that his complaints to the Prime Minister's Office, Haryana Chief Minister's Office went unheard. "Prime Minister Modi urges NRIs to invest in India, but with a situation like this, where investment is not safe, no one will invest in India," he said. Jain alleged that the developer had lured NRI investors with aggressive marketing with the promise of assured returns. "I have come across 40 people in the US alone, who have invested in Spire Edge," he said. 

All the 1,274 investors, including the 600 NRIs, in the Spire Edge project have now formed an association called Federation of Spire Edge Customers Association (FOSECA). At a press conference in Gurgaon on Saturday, they alleged financial irregularities of the company and presented documents showing how AN Buildwell diverted funds from the project to other companies for purchasing land.

"A sum of Rs 41 crore was diverted to various parties in 2010-11 for purchase of land for new projects in Gurgaon," according to an audited document of the company's financial statement.

TOI has all the documents showing financial transactions between AN Buildwell and other companies. Vikas Sethi, who is heading FOSECA, said he got the documents received through RTI queries. "Directors of AN Buildwell have siphoned off funds to the tune of Rs 42.05 crore to various companies controlled by them. Funds have been siphoned off from AN Buildwell to other related parties and other means even while liquidation of the company was ordered for not furnishing a paltry sum of Rs 75 lakh," he said.

"The company was forced into liquidation in an attempt to cover up siphoning and diversion of funds. If liquidation happens then it will adversely affect the interest of buyers," said JP Syal, a retired police officer and one of the investors.

SOURCE: magicbricks.com

Building plan approval goes online

Huda is going hi-tech. It has put its building plan approval system online for the entire state, doing away with the existing manual system. The new digital system is expected to make the process of building plan approval less cumbersome and more transparent, and leave little scope for corruption.

Successive Haryana governments have been trying to implement this system for some time. A policy guideline was prepared in this regard in May 2009, and after seven years of trial and error, the state has finally managed to create an error free software, named 'online approval of building plan'. The notification for implementation of this system was issued on June 15.

"The present system of building plan approvals was manual, and used to take over a month, during which the plan would pass through various lengthy and cumbersome processes, normally requiring the applicant much more than the prescribed 21 days. The new online system was implemented to expedite this process and ensure homogeneous and uniform scrutiny throughout the state," said a senior Huda official, adding that under the new system, approval will be given in just six days. A timeline has been fixed for different officials to carry out their designated roles.

Admitting the manual process had been marred by delays, irregularities and complaints of corruption, the Huda official claimed the online system will make such irritants a thing of the past, as applicants will not be required to visit any office or official for the purpose.

One has to get a building plan approved from concerned estate officer, to carry out any construction on land in Huda sectors, as well as land allotted by the urban development body . "Earlier, a committee used to scrutinise the building plan with representatives from the estate office and the engineering wing," said the Huda official, adding all this will now happen online.

Elaborating further, he said architects will have to submit a fresh CAD drawing of the building plan to Huda on Huda's portal, using the password and user ID of the architect registered with Huda. If the plan is technically approved by the AutoDCR (Automatic Development Control Rule), a printout of the plan, having signatures of the architect and the plot owner, along with required documents, will be submitted to the junior engineer (JE). The JE will then submit a ground inspection report in two days, following which, the estate officer will take the final call on whether to approve or reject the plan.

In case a plan is rejected, the estate officer will have to give reasons for rejection. "The status of the plan submission will be sent to the allottee by SMS, email and post," said the official. Applicants can also trace its status online.

Welcoming the move, Huda empanelled architect Anil Yadav said, the system will benefit all and also check corruption. "Architects have been making drawings on CAD already for the last several years, so it would have been so much better if implemented earlier. But better late than never," said Yadav, adding under the new system, the architect will know the reason for the rejection of a plan and thus get time to correct the deficiencies.

He added, "Things will now be done in a week, and the role of middleman will be cut out."

SOURCE: magicbricks.com

Delhi-Meerut E-way: Dasna-Meerut stretch gets green nod

The Centre has given its green nod to construction of Dasna-Meerut six-lane connector under Delhi-Meerut Expressway at a cost of Rs 1,658 crore.

The ambitious Delhi-Meerut Expressway project, aimed at de-congesting traffic in the national capital, proposes construction of total four stretches, including Nizamuddin bridge to UP border, UP border to Dasna and Dasna to Hapur.

"Based on the recommendations of the Expert Appraisal Committee, the Environment Ministry has given environment clearance to NHAI's proposal to construct a greenfield alignment of Delhi-Meerut Expressway from Dasna to Meerut and the six-lane connector," a senior government official said.
The proposed Dasna-Meerut alignment has been approved subject to certain conditions, the official said.

The National Highways Authority of India (NHAI) has proposed constructing a 46-km long road on this new alignment consisting of one major bridge and four minor ones.

NHAI has proposed improving and widening 19 culverts to four lanes, with 626 to be newly constructed.
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The proposed project, which would involve land acquisition of 479.91 hectares, is estimated to cost Rs 1,658 crore.

Among the conditions specified, the Environment Ministry has asked NHAI to secure stage-I forest clearance for diversion of 15 hectares of forest land as required under the law.

Meanwhile, NHAI has given an undertaking to the ministry that it would execute work on non-forest land only up to such point on either side of forest land and in case it does not get forest clearance, the project would be executed along an alternative alignment without involving forest land diversion.
But the ministry has made it clear that commencement of work on non-forest land will not confer any right with regard to grant of approval under the Forest (Conservation) Act.

NHAI and the Transport Ministry have been asked to re-evaluate the minimum distance between national highway and urbanisation, industrialisation or commercialisation of stretches to avoid congestion.

SOURCE: CREDAI(NCR)