Sebi likely to ease out regulations for REITs and InvITs

With an aim to give capital markets a big push, regulator Sebi is likely to ease out regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), this month.

"We are likely to take a call in our board meeting this month. I am very optimistic that REITs and InvITs will take off this year," SEBI chairman U K Sinha told reporters on the sidelines of a conference on municipal bonds.

The move is being taken after Sebi received suggestions to change these norms.

Noting that multiple applications have been received for registration for REITs and InvITs, the Sebi chairman also said these investment vehicles are expected to take off this year.

"I am very optimistic that REITs and InvITs will take off this year," he said.

Sebi had come out with regulations for REITs and InvITs in 2014. However, single trust has been set up as yet as investors wanted further measures, including tax breaks, to make these instruments more attractive.

While the government provided for certain tax benefits in the Budget this year, the Sebi has now decided to further relax the rules.

Among others, Sebi's board is expected to consider an easier set of norms on REITs and InvITs. It may allow the REITs and InvITs to have up to five sponsors, as against the current norm for maximum three.

Under the proposal for REITs, Sebi would allow up to 20 per cent investment by such trusts in under-construction projects, up from a maximum of 10 per cent allowed currently.

SOURCE: ETRealty

Noida outshine others in Property Sales

Noida: New Okhla Industrial Development Authority or Noida, as we know, has been a benchmark in the real estate sector of NCR for over a couple of decades. Being a neighbor of the capital of our country, it always received the fruits of acceptance by people more than any other region of the NCR. On the development front as well, Noida has been a skyline of NCR with infrastructure on a continuous development and upgradation spree. As a region, Noida has witnessed industrial, commercial and infrastructural development on a massive scale and looks quite a complete city. For residents also, civic amenities are present with scope of improvement. The presence of public utilities makes it a complete habitat. Developers across NCR have always favoured Noida as a realty region over others due to its approachability from Delhi, Ghaziabad, Greater Noida and Faridabad. This allows connectivity advantage, thereby gradually enhancing its capital value as well. Further, the provision of elevated roads and underpasses to deal with traffic congestion as well as ongoing projects in expansion of road, civic and Metro structure is carving the city even better to match the status of world class city.

Mahagun Group, a realty major in NCR, has recently come up with the 2nd edition of its property expo, ‘The Great Indian Property Bazaar’(GIPB), offering total of 11 offers on the purchase of property from 9 of its projects located in Noida and Greater Noida West. Starting from 13th August  to 11th September,at location of Mahagun Mezzaria, Sector-78, Noida, GIPB is offering offers like free AC, Wooden Wardrobe, Modular kitchen, free covered parking, free 2 years maintenance charges, and such other offers to benefit the buyers. Perhaps, the whole event  has lately gained much appreciation among the people and footfalls in thousands have been evident at the site.

Speaking on this topic, Mr. Dhiraj Jain, Director, Mahagun Group , praised the overall development of the Noida real estate. “The way Noida realty has developed in the entire NCR, is quite appreciable. Home is a quintessential part of everyone’s life and we have been serving this sector with high quality work and timely delivery. This is the reason we have received large number of footfalls at our expo, providing the buyers with various discounts and schemes, and giving them the best deals, thus, reinforcing the whole market of Noida. The results of our property fest in its last edition which was recently held in February this year was so over whelming that we thought of repeating it again and give our buyers pre-festive offers”.

GURGAON TO HAVE A DEVELOPMENT AUTHORITY SOON

The well known ‘Millenium City’ of NCR, Gurgaon or Gurugram, is all set to get its very own development authority that has been anticipated as a junior administrator for the city and will eradicate the mandate of getting all the files approved from Chandigarh. Having a development authority in Gurgaon was a long awaited dream of lakhs of residents and hundreds of developers who have for long now sought removal of multiplicity of agencies in Gurgaon. This will allow quick approvals for the infrastructural work in the city that has been the biggest cause of concern for the inhabitants and future residents. Even the developers have had a very hard time in pushing the sales as infrastructure has gone for a toss and people are reluctant to make a purchase in the region.

Speaking yesterday on the occasion of Ganesh Chaturthi, Haryana CM Manohar Lal Khattar said, “Gurgaon Development Authority will be set up. I am making this announcement on the auspicious day of Ganesh Chaturthi. Corporation (MCG) polls will be held after GDA is formed. We have two months to work out the nitty-gritty.” According to the announcement, one thing came out that Gurgaon development authority will not take MCG’s place. 1st November will mark Haryana’s 50th formation day and thus, the CM seemed intent to pin it with a strong turn in governance by setting up the Gurgaon Development Authority. This decision will go down in the history books of Gurgaon that will bring about a transformation in the shape of Gurgaon as a region. Real estate sector is especially going to benefit from this decision as infrastructural front will become smoothly active, which in turn will support the realty sector of the region.

Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd. said, “Gurgaon as a city today is regarded as one of Indian’s foremost corporate hubs with a cosmopolitan population that it has brought along with it. Infrastructural deficiencies were a major cause of concern as this was driving the fresh demand away and sentiments of the inhabitants was getting negative. Gurgaon getting its own development authority will allow faster approvals that will further help the infrastructure work to be carried at a greater pace. Once the infrastructure in the region witnesses a revamp, the attraction quotient of the region will improve drastically and demand will come bouncing back.”

Kushagr Ansal, Director of Ansal Housing states, “Over the past one decade, Gurgaon as a region has progressed a lot which has allowed the realty sector here to grow vertically. Infrastructure on the bigger fronts such as Airport and Metro rail was made available long back, but the same was observed to be lacking on other levels, such as roadways, sewage management, public conveyance, order and justice, etc. These reasons over the time had become a pain for the residents and commuters here. Now with a development authority in Gurgaon, things will function very smoothly especially on the infrastructure front. Timely approvals and monitoring will allow the region to develop the way it should have earlier.”

“Gurgaon has contributed immensely towards the development of Haryana as a state. The contribution of the private sector towards the development of Gurgaon cannot be ignored. Real estate sector gladly welcomes this move as now the final authority will sit here and make swift decisions. The existing residents will make the most out of it and developers will have a better infrastructure to promote in times to come that will assist the realty sector in the long run. The untapped and emerging regions towards the outskirts of Gurgaon will take the benefit through the ripple effects that will come along with the better development of infrastructure in Gurgaon”, avers Rakesh Yadav, Chairman, Antriksh India.

Vikas Sahani, CMD, Property Guru concludes, “Gurgaon has been the crown jewel of NCR ever since its evolution and there have been many reasons which can be attributed to this feat and has been attained. Prime reasons being the location advantage, ground connectivity and solid infrastructure; and getting the air connectivity was the biggest boost this region could expect. With all the corporate giants looking to set up their head offices here, and everyone looking to find a shelter nearby, it was all bound to witness sudden surge in demand. This could be catered only with an independent body situated locally. Talks had been on for this body to come up since long but finally it will see the dawn very soon and ideally solve the purpose of timely approvals and better administration.”

SC asks Sahara India Commercial to deposit Rs3.5 crore for delay in flats delivery

The SC order came on an appeal filed by Sahara India Commercial against NCDRC order which had asked the firm to pay compensation at 12% to the Sahara Grace flat buyers for delayed possession

The Supreme Court on Monday directed Sahara India Commercial Corporation Limited (SICCL) to depositRs.3.5 crore to pay back investors who had bought flats in its Gurgaon project but did not receive possession on time.

“It is directed that the appellant (SICCL) shall deposit Rs.3.5 crore before registry of this court,” a bench of justices Dipak Misra and U.U. Lalit said while directing the firm to deposit the amount.

Senior advocate Vikas Singh, appearing for SICCL, said the construction of its Gurgaon project ‘Sahara Grace’ was completed on time and the delay in award of possession of flats was only “procedural”.

He said the possession of the flats has already been handed to the owners where they have been residing.

The matter has now been posted for final disposal after six weeks.

The order came on an appeal filed by SICCL against order of the National Consumer Disputes Redressal Commission which had asked the firm to pay compensation at 12% to the Sahara Grace Consumers Grievance Association for delayed possession of flats. The NCDRC in its August 2015 had also directed SICCL to pay Rs.2 lakh to the flat buyers for the mental agony and harassment suffered by them.

Sahara Grace was a project proposed to be developed in Gurgaon by SICCL in 2003 and all the apartments were to be delivered between April 2006 to March 2007. SICCL, however, failed to complete the project and deliver possession of the apartments to the flat buyers as the occupancy certificate for the flats was received by them in January 2008 and the possession was finally given in April 2008 to January 2009.

Earlier, real estate firm Unitech Ltd was directed by the apex court to deposit Rs.15 crore principal amount by September-end to pay back investors who had bought flats in its ‘Unitech Vista’ project but had not got possession on time.

Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s dispute with the Securities and Exchange Board of India. Mint is contesting the case.

SOURCE: livemint

Huda starts work to complete remaining portion of Southern Peripheral Road

Haryana Urban Development Authority (HUDA) started work for completing remaining portion of Southern Peripheral Road (SPR) on Saturday by removing structures from Rambir Ki Dhani. The completion of SPR will resolve the connectivity problem in new sectors 58-80 and expected to reduce traffic load on NH-8.

Huda is planning to make SPR operation by mid-September and for this around 16 oustees of Rambir Ki Dhani were allotted alternative plots in sector 49 on August 24. It has cleared the last obstacle coming in the way of 16km-long SPR which originate from Gurgaon-Faridabad Road near Ghata and meet NH-8 near Kherki Dhaula via Sohna Road.

Huda officials along with around 100 policemen reached at Rambir Ki Dhani on Saturday for removal of the structures of oustees, who have been allotted alternative plots, and simultaneously started the road construction work.

"Only small portion of road in between Vatika Chowk and NH-8 was left out, from today we started the work to complete the remaining work," said Huda administration Yashpal Yadav adding that very positive about fulfilling their commitment to make this road operational by mid-September. He said completion of this road will improve connectivity of Golf Course Road, Faridabad Road, Sohna Road and nearby areas with NH-8 and it will reduce traffic load on Delhi-Gurgaon expressway.

The move is expected to boost the real estate industry in Gurgaon as many commercial and residential projects are being developer along the SPR. The completion of this road is also expected to improve connectivity of new sectors 58-80, developed along the SPR, with rest of the city and NH-8.

Ashish Jerath, Head Sales, Emaar MGF Land Ltd, who has project along SPR, said, "Opening of SPR will be positive for residents of Gurgaon and it will fill one of important gaps in connectivity of new Gurgaon sectors. Its opening is expected to decongest Sohna Road and provide connectivity to several housing projects between sectors 68 to 77. Some of which have been already been delivered and others are under construction." He said they are hoping that similarly government will focus on filling the critical infra and connectivity by completing NPR.

Along with improving connectivity, today's development also likely to resolve issues related to civic amenities in the sectors along SPR. With the removal of structures from Rambir Ki Dhani Huda will also be able to build water supply lines to sectors 58-80, where for long, water has been supplied through water tankers as the authority had failed to lay a pipeline due to obstacles in the alignment of pipeline.

SOURCE: ETRealty

Governor wants to know why UP ignored PM Modi's housing scheme

LUCKNOW: Governor Ram Naik on Friday wrote to chief minister Akhilesh Yadav expressing his displeasure over UP not sending any proposal for Centre's housing scheme for urban poor. In his letter, Naik sought to know why the state urban department, headed by cabinet minister Azam Khan, did not respond to the repeated reminders from the Centre to send proposal for the scheme. Issuing a statement on Friday, the governor said PM Narendra Modi had launched the housing scheme in June 2015 promising houses to urban poor by 2022.

Most of the states responded to it and sent in their proposals to seek funds, but UP stayed away, Naik pointed out in his letter. The Union urban development ministry has sanctioned nine lakh housing units with an investment Rs 53,581 crore in the current financial year for all states. When the governor met Union urban development minister Venkaiah Naidu on August 30 the latter apprised him that 21 states have started implementing the scheme with the help of central funds but UP has kept away from it.

Naik and Azam have attacked each other on several issues in the recent past. It remains to be seen if Naik's latest letter would trigger another war of words between him and the minister.

Source- ET Realty 

Gr Noida's Jewar airport gets central push as UP polls near

With the UP assembly elections approaching, the Modi administration has fast-tracked the groundwork for NCR's second airport in Greater Noida's Jewar district. The UP government is also pushing for early clearance of the airport apart from having international operations at Agra Airport.

Aviation secretary R N Choubey said on Thursday that the ministry had asked the state government to submit location maps for the proposed airport as the next step in the clearance process involved giving site approval. "Once that is given, the state will prepare the detailed project report. Then the aviation ministry will give in-principle approval following which the project will be executed," he said.

Execution means acquiring land and then bidding the project out. Choubey clarified that the airport's construction won't require amending the '150km rule'. According to this, an airport should not be built in vicinity of an existing one till the latter's capacity falls short of meeting the requirements of its catchment area.

"In Delhi's case, the only condition is that the airport operator of the existing facility (GMR Group for IGI Airport) will have the right of first refusal (ROFR)," Choubey said, removing all fears over the 150km rule being a stumbling block for the NCR getting a second airport. Under ROFR, the GMR-backed Delhi International Airport Pvt Ltd (DIAL) can bid for any such airport and will get the right to match the highest bid if its own quotation is within 10% of the same.

In fact, a Comptroller and Auditor General report in 2012 had criticised the ROFR given to DIAL. "This provision thwarts competition and provides DIAL with a natural advantage on the second airport," it had said.

However, the secretary said the rule was not a blanket one. "In Delhi, it means existing airport operator having ROFR. Under the concessionaire agreement with operators in Bengaluru and Hyderabad, ROFR means another airport will not be allowed to operate there for 25 years."

In Mumbai, the need for another airport was triggered by the fact that the existing Chhatrapati Shivaji Airport was no longer able to meet the megapolis' requirement. Delhi's IGI Airport, on the other hand, still has the scope for a lot of expansion, including laying of the fourth runway, construction of a new terminal and expansion of the existing Terminal 1.

Meanwhile, the UP government is pushing for international operations at Agra Airport, a defence airfield. "The UP chief secretary met me recently and we have okayed that. The defence ministry has also indicated its in-principle approval. It may happen soon," Choubey said. The assembly elections are due early next year. Both announcements will have to be made before the Election Commission announces polling dates after which any such decision will be banned under the code of conduct.

SOURCE: ETRealty