RBI caps banks exposure to Reits,InvIts at 10% of unit capital

MUMBAI: The Reserve Bank on Monday amended the statutes making it possible for lenders to invest in Reits and InvIts capping such exposures to 10 per cent of the unit capital of such instruments, and also to regulate their commodity derivatives play.

In amendments to the Master Direction- Reserve Bank of India (Financial Services provided by banks) Directions, 2016, the central bank said banks should not invest more than 10 per cent of the unit capital of a real estate investment trust (Reit) or an infrastructure investment trust (InvIt) subject to overall ceiling of 20 per cent of its net worth.

The master directions first issued in May last year did not provide for investments in the Reits and Invits, both newly introduced instruments.

The RBI also prohibited banks from becoming a professional clearing member of commodity derivatives segment of Sebi-recognised exchanges unless it satisfies certain prudential criteria.

These include bank satisfying membership criteria of the exchanges and complying with the regulatory norms laid down by Sebi and the respective stock exchanges and putting in place board-approved risk control measures, among others.

The RBI also prohibited banks from offering broking services for commodity derivatives segment of Sebi recognised stock exchanges except through a separate subsidiary set-up for the purpose or one of its existing subsidiaries.

Laying down the conditions for allowing broking services, it said there should be an effective risk control measures, including prudential norms on risk exposure, in respect of each of its clients, taking into account their net worth and business turnover.

The central bank also barred the subsidiary from undertaking proprietary positions in commodity derivatives.

The amendments also remove references to corporate debt restructuring and strategic debt restructuring in the earlier master directions.


Source- ET Realty

Dwarka Expressway: Home buyers at NHAI door for faster completion

GURUGRAM: Nearly 50 members of DXP Welfare Association, which represents 34 residential projects on Dwarka expressway, approached NHAI officials on Saturday for expediting the completion of the national highway. The expressway project, which was launched a decade ago, has seen multiple delays due to land acquisition hurdles.

“We are unable to shift to our homes due to the non-completion of the highway. Though the Dwarka expressway was declared a national highway 18 months back, the actual work towards the completion of this project has not taken off till date,” stated a letter submitted by the homebuyers to NHAI officials.

However, the homebuyers expressed happiness in the fact that a tender for a portion of the expressway has been released recently. NHAI also recently announced NCR’s longest-elevated corridor on the expressway.

The homebuyers are, however, still unsure of the timely completion of the project as the multiple delays in the past 10 years have taken a toll their patience levels. “The six-lane elevated highway sounds like an ambitious plan to ease traffic and pollution level, but still there is no concrete plan from the government side for the timely completion of Dwarka expressway,” said Yashesh Yadav, president of DXP Welfare Association.

The delay in the project has primarily been caused due to hurdles in land acquisition, and litigation and protests by oustees. “We don’t see the desirable seriousness from authorities towards resolving the issues pertaining to the completion of the Dwarka expressway. From the past one year, the issues have only increased and even today there is no connectivity between the existing portion of Dwarka expressway and NH-8 or towards Delhi,” said Pradip Rahi, another affected homebuyer.

Envisioned as the fourth link between Delhi and Gurgaon — after MG Road, NH-8 and Old Delhi-Gurgaon road — Dwarka expressway originates at Shiv Murti in Delhi and ends at Kherki Daula in Gurgaon, near the toll plaza on the highway. In all, around 90,000 homebuyers are affected due to the delay in the completion of the project and many have not been able to move into their flats because the road is still incomplete.

Despite repeated attempts, NHAI officials could not be contacted.

Source- ET Realty

Indian Bank raises Rs 2000 crore for infra, affordable home loans

 Public sector lender Indian Bank today said it has raised Rs 2,000 crore to finance infrastructure and affordable housing.

The amount raised through the issuance of long-term bonds is part of the bank's Rs 5,000 crore fund raise plan to support infrastructure and affordable housing in the country.

"The board of directors ...on September 21, 2017, accorded approval for issuance of 7-year long-term bonds amounting to Rs 2,000 crore in tranches out of the Rs 5,000 crore," it said in a regulatory filing.

Earlier in May this year, Indian Bank had informed about board's approval to raise Rs 5,000 crore for the intended purpose.

Providing affordable housing is one of the ambitious projects of the government, 'Housing for All by 2022'. Boosting infrastructure is another key area that has been accorded key priority, Indian Bank had said.

Source- ET Realty

For capital gains relief, flat possession date counts: ITAT

The date of possession of a new house, and not that of the purchase/sale agreement, will be considered for calculating the eligibility period for claiming exemption on reinvestment of long-term capital gains in residential property, the Income Tax Appellate Tribunal (Mumbai bench) held recently.

If a taxpayer makes a profit on sale of an asset (house, land, commercial property), s/he has held for two years (2017-18 budget reduced the holding period from the earlier 3 years), it is treated as an LTCG, taxable at 20% with an adjustment for inflation.

If a component of LTCG is reinvested in another house in India within a stipulated period–one year prior or two years from the date of sale of the first house—the taxpayer can claim a tax exemption under section 54 of the I-T Act. The reinvestment must be made within that period, failing which the tax benefits are not available.

In this case before the tribunal, the taxpayer, Ramita Mahendra Mehta, claimed I-T deduction as she had sold her house on September 11, 2009 and purchased a new house by entering into an agreement dated August 18, 2007.

The I-T officer said she did not comply with the requirement that the new house must be purchased within one year prior to transfer of the existing property. However, Mehta contended that though the purchase agreement was entered into on August 18, 2007, the final possession of the new house was received only in March 2009. The date of possession must be considered for determining the ‘period of eligibility’. Thus, she would meet the criteria of having invested within one year prior to the transfer of the existing property (which was sold on September 11, the same year).

The tribunal bench recognised the issues that buyers of house properties face, especially in metropolitan cities, which could include project delays and thus delay in possession of the new house.

In its order, the ITAT said: “The buyers even after having the agreement for the purchase of the new flat cannot exercise any right of ownership or their right cannot be traced to any part of the construction till such time the builder actually gives the possession of a particular flat to the buyer... Against this background of flat transactions, we are now faced with the provisions of Section 54 for granting exemption to the taxpayer, who at one point of time, enters into the purchase and another point of time, takes possession and starts actual enjoyment of the flat.”

Relying on previous orders of high courts, including the Bombay high court, the tribunal held that the date of final occupation should be considered for calculating the period of eligibility for deduction under section 54. In this case, it would enable the taxpayer to satisfy the requirement that the new house must be purchased within one year prior to transfer of the existing house.

Source- ET Realty

Greater Noida Authority reschedules board meeting to Sept 22

GREATER NOIDA: A Board meeting of Greater Noida Industrial Development Authority (GNIDA), which was initially proposed to be held on Wednesday, September 20 has been rescheduled. It will now be held on Friday, September 22 at the Authority offices located in Greater Noida.

According to officials, the meeting has been postponed as the agenda is still to be drawn up and put into place. Major issues on the Board’s agenda are likely to include land allotment and land registration issues. Greater Noida Authority is likely change its land allotment policy. Once revised, allottees will have to pay 10% of land cost at the time of registration of property and another 20% after allotment. The balance 70% will be collected in 14 instalments over a period of seven years. Currently, developers in Greater Noida have to pay a mere 5% at the time of registration of property and 5% towards allotment, while the balance amount is collected over 12 years, including a two-year moratorium.

In an attempt to ensure timely completion of projects, GNIDA is also likely to approve issuance of completion certificates only after all instalments are paid by the developers.

Also on the Board’s menu is likely to be cancellation of allotment of property of all allottees who fail to register their land by March 31, 2018. Non-registration has been causing the Authority a revenue loss of nearly Rs 700 crore. The proposal is likely to offer incentives to allottees to register their property in time and levy a penalty on those who do not.

Interest waivers on delayed payments towards allotted property will also seek a not from the Board. This will be done on the lines of what Yamuna Expressway Authority has approved a few months ago. A special payment plan is likely to be implemented, which will provide allottees waiver from paying penal interest on their instalments subject to certain payment conditions laid down by GNIDA.

Source- ET Realty

NH 24 VERSION 2.0 TO BOOST REALTY ALL ALONG

Just as the year 2015 drew close to it’s end, our Honourable Prime Minister, Shri Narendra Modi had launched a mammoth ₹7,500 crore project for the widening of the existing Delhi – Meerut roadway and replace it with an expressway to decongest the National Capital and its nearby regions that form the integral part of NCR’s realty map. The project was estimated to be complete in the next 30 months. When this project was inaugurated, everyone was high in anticipation that not only will this benefit the daily travellers of this belt, but would also boost the real estate growth along the entire patch. Regions falling along the widened belt are expected to yield the biggest benefits.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz avers, “History has been a witness to how connectivity plays a major role in shaping up the real estate of a region. When talking of ongoing widening NH 24, there are multiple micro pockets of both Ghaziabad and Noida which would benefit hugely from it. To name a few, pockets like Rajnagar Extension, Indirapuram, Siddhartha Vihar, Crossings Republik, etc. which enjoy direct connectivity with NH – 24 and would be the first to reap fruits of this new expressway.”

“Micro pockets like Indirapuram and the first phase of Crossings Republik have already materialised to a great extent but Siddhartha Vihar and the second phase of Crossings Republik have just seen the dawn and are still in their budding phases. Siddharth Vihar has huge housing potential and more than two lac people are expected to live there in next 5 years. Once the expressway becomes fully operational, the growth of these upcoming regions would definitely get on fast track and demand will automatically escalate to an all time high. Infact, the whole of Ghaziabad would benefit hugely from this because of the ripple effects which this development will have on regions adjoining the micro pockets falling directly on this expressway”, explains Gaurav Gupta, General Secretary CREDAI – Ghaziabad & Director, SG Estates.

Elaborating further, Manoj Gaur, Vice President CREDAI-National & MD, Gaurs Group says, “Any region thrives heavily on connectivity and when one refers to a National Highway, the number of regions increases manifolds. With the current trend in the realty market shifting more towards affordable housing, the widening of this highway will certainly open multiple new pockets for development as a major issue of connectivity would have already been addressed. These new pockets can surely emerge out as affordable housing destinations owing to the factors affecting the cost of units being low in these regions. Once settlement starts, commercial real estate automatically picks up pace in order to fulfil the demands of the residents.”

Adding to the views, Dhiraj Jain, Director, Mahagun Group says, “The widening of NH 24 is no less than creating a new roadway for the region as the existing stretch was heavily under traffic pressure that had resulted in traffic chaos. A decongested NH 24 will give way to greater demand as this stretch has always been the lifeline for commuters from Delhi to Ghaziabad and Noida. The expressway extending up to Meerut will mean newly tapped regions for the growth of real estate all along and hence giving a whole new dimension to the realty of this region.”

“The most prominent sight that we will witness after the widening of NH 24 will be the appreciating prices along the properties located on the NH 24 belt along with smooth traffic flow with no traffic jams. The demand in the micro regions of Ghaziabad such as Indirapuram, Siddharth Vihar, Crossings Republik, Raj Nagar Extn. and some sectors of Noida will witness a steep rise. Also, having an expressway will help in generating a lot of revenue for the government”, concludes Vikas Bhasin, MD, Saya Group.

LIC Housing Finance eyes to disburse Rs 50,000 crore in FY17-18

LIC Housing Finance Ltd has set a target of disbursing over Rs 50,000 crore during the current financial year, a top official said today.

The company recorded a total disbursement of Rs 41,541 crore, up by 15 per cent, in last financial year, LIC Housing Finance Ltd, Managing Director and CEO, Vinay Sah said.

"For the last (financial) year we registered disbursements of Rs 41,541 crore. That is with a growth of 15 per cent. This year, we have set a target of crossing Rs 50,000 crore", he told PTI at the sidelines of an event here.

In 2016-17, the income grew by 16 per cent with a Profit After Tax at Rs 1,931 crore.

"Till August the disbursement is around Rs 15,000 crore", he said, adding the company witnessed a growth rate of more than 17 per cent in the retail segment.

Later, talking to reporters after unveiling the three-day "Ungal Illam" (Your House) exhibition on realty properties, he said the company planned to raise Rs 55,000 crore during the current financial year in NCDs.

"We will raise as and when the need arises", he said.

Last month, at the company's Annual General Meeting, the board approved proposal to raise upto Rs 57,000 crore.

The company had then said that the proposal would be through redeemable Non-Convertible Debentures and/or by other instruments, including private placement basis upon amount not exceeding Rs 57,000 crore.

On the impact of demonetisation and implementation of Goods and Service Tax, he said demonetisation,GST and even the RERA Act occurred in the last six months making public adopt a "wait and watch" approach before deciding on new projects.

"Public at large are having a wait and watch approach. There is some slowdown as far as demand is concerned", he said.

The company had clocked an order book size of Rs 1,47,051 crore during the last financial year, he said.

Source- ET Realty

Greater Noida set to change land allotment rule, will settle for 10% of cost initially

After Noida and Yamuna Expressway authorities, the Greater Noida Authority has now decided to change its land allotment policy. A proposal to this effect is likely to be put up before the Greater Noida Board in its next meeting slated for September 20, sources said.

Once revised, allottees will have to pay 10% of land cost at the time of registration of property and another 20% after allotment. The balance 70% will be collected in 14 instalments over a period of seven years. Currently, developers in Greater Noida have to pay a mere 5% at the time of registration of property and 5% towards allotment, while the balance amount is collected over 12 years, including a two-year moratorium.

According to experts, the land allotment policy, which was revised in 2009 by then Mayawati-led BSP government, is the cause of the builder-buyer impasse seen today. Before the land allotment policy was revised, allottees had to deposit 30% of the land cost with the authority. However, after the revision of the policy, builders had to pay only 10% (in two equal instalments) and were even offered a two-year moratorium, during which they did not pay anything to the authority.

Sources also said once the policy is revised by the Greater Noida Authority, the two-year holiday enjoyed by the allottees is likely to be done away with.

In June this year, Noida Authority changed its allotment policy to 40% deposit at the time of allotment, including 10% at registration and balance in four subsequent years in eight semi-annual instalments at a compound interest rate of 11%. YEIDA in the same month also approved a revised allotment policy for different categories of land use.

Meanwhile, the Greater Noida Authority is also likely to propose to the Board, cancellation of allotment of the property of all allottees who will not register their land by March 31, 2018.

Sources said non-registration has been causing the Authority a revenue loss of nearly Rs 700 crore. The proposal is likely to offer incentives to allottees to register their property in time and levy a penalty on those who do not.


Source- ET Realty

Residents of Sikka Karmic Greens promote tree plantation

In order to promote environmental friendliness and concern about the global warming, a plantation drive was initiated at the Sikka Karmic Greens Society, Sector 78, Noida. The residents belonging to all age groups promoted the idea of going green with full enthusiasm. The families of t society turned up and planted 300 saplings for the event. People seemed excited during the entire event wherein they also took an oath for maintaining the same environmental concern in a persistent way.

“We all know that the current situation is quite alarming considering the fact that we have started facing unpredictable climate variations. Thus, in my opinion, it has become a mandate for all of us to pay much-needed attention towards the climate. We can inculcate an environment-friendly lifestyle wherein we can easily contribute to the greenery and use less of the products that cause harm to our environment. Such events are definitely laudable and it’s good to see that all families especially when people from younger age groups come and take interest in such productive activities” says Madhur Mittal, the resident from Sikka Karmic Greens. 

70 Noida, Gr Noida builders told to prepare delivery schedule of flats

A day after chief minister Yogi Adityanath asked builders with incomplete projects in Noida and Greater Noida to complete and hand over the possession of 50,000 flats to homebuyers, the twin authorities have summoned the builders of 70 ongoing projects in both cities. While the Greater Noida Authority has scheduled a meeting with the builders on September 15, the Noida Authority has fixed September 16 for the meeting.

The builders have been asked to come with a road map for completion and delivery schedule along with the number of homes that will be handed over.

“We have asked the builders to come prepared with a delivery schedule of all their projects,” said A K Rai, additional CEO, Noida. “The focus is on 39 projects which are near completion in Noida. Of these, 16 projects are those whose applications for completion certificates were rejected by us in July this year. These allottees had not fulfilled the laid-down criteria for completion and had allegedly filed their applications in haste to keep themselves out of the ambit of Real Estate Regulatory Authority,” the ACEO said.

The other 23 projects with nearly 10,000 units will also be examined for their completion status. Out of the promised 50,000 flats in 70 projects in both areas, nearly 44,000 are located in Noida and 16,000 in Greater Noida.

Meanwhile, officials of Greater Noida said they have also called the builders. “We will meet regarding 30 projects, builders of which have submitted applications for completion certificates. These 30 projects will house nearly 16,000 flats,” said an official.

Source- ET Realty

CREDAI MAHARASHTRA VISITS SIGNATURE GLOBAL PROJECT SITES TO UNDERSTAND GURUGRAM’S AFFORDABLE HOUSING

Mr. Shantilal Kataria, President of CREDAI Maharashtra, visits Signature Global Synera in Sector 81, Gurugram  & Signature Global Solera in Sector 107, Gurugram with a team of 160 developers.

Gurugram: With a motive to understand the framework and management of affordable housing units, under the Pradhan Mantri Awas Yojana Mr. Shantilal Kataria, President of CREDAI Maharashtra, visited  Signature Global Synera in Sector 81 and Signature Global Solera in Sector 107, Gurugram with a team of 160 developers. The visit by the Maharashtra CREDAI members was in line with their desire to construct promising affordable housing projects in their very own state. Signature Global’s Co-founder & Chairman, Pradeep Aggarwal was part of the whole event where he assisted all the queries of the Mumbai team with patience.

This was the second visit of Mumbai officials where they showed interest in affordable housing segment of Gurugram. Earlier, the officials of CREDAI Maharashtra along with 13 developers from Kolhapur of Maharashtra had visited to understand the same segment of the real estate market. The team understood the layout plan and the entire framework of these projects. Also, they discussed the prospected challenges that affect the execution of such projects. Talking about the affordable housing units, Signature Global has launched around 9000 Affordable units till date and is going to introduce 30000 more low-cost units.

“Gurugram has been bringing in gratifying results for the PMAY policy. We have been coming up with the residential affordable projects since the very beginning so our region has contributed well enough in the affordable housing sector. It’s a positive sign that the other major states have also been showing eagerness for contributing in the affordable housing projects. We welcome all the states and their serious members to come and work for this noble policy that’s aiming to provide housing for all. 

Moreover, it was an honor for us as Shantilal Kataria, President of CREDAI Maharashtra and the entire team appreciated all our projects and the framework. Observing the recent framework, we cannot deny the fact that most of the financial institutions and micro-lenders are coming forward to contribute to the affordable housing projects. There has been an appropriate start at this sector, suggest the Past few years, the recently enacted laws and regulations assuring transparency are going to ease larger proportion of people. The perspective about the real estate industry is transforming.  The good news is that the sector has already started experiencing the positive impact of these laws and benefitting policies” said Pradeep Aggarwal, Co-founder & Chairman, Signature Global.