Ghaziabad Development Authority told to deposit Rs 1,282 crore by Nov 29 for housing scheme

The divisional commissioner has given a conditional nod to GDA to initiate the process of land acquisition for Madhuban Bapudham housing scheme by directing it to deposit Rs 1,282 crore with the administration by November 29 before it begins the process.

Though district magistrate Ritu Maheshwari, who is also the vice chairperson of GDA, has expressed confidence that the money will be deposited by November 29, many still doubt its possibility.
“On Thursday, the commissioner had given go-ahead for awarding land compensation to farmers under Madhuban Bapudham housing scheme which will be now twice the circle rate. However, he has laid a pre-condition that GDA will have to deposit Rs 1,282 crore by November 29,” said an official. The Maduban Bapudham scheme, touted as the biggest housing scheme launched by GDA ever, was conceived in 2004. As per the plan, 1,234 acre was to be acquired from five villages namely Sadarpur, Mainapur, Morta, Nagla Patt and Yakutpur. Out of 1,234 acre, GDA managed to acquire 800 acre from farmers at a rate of 1,100 per sq m. But the farmers and Sahara group, who owned rest of the land, went to the high court demanding higher compensation.
As the Allahabad high court ruled in its favour, the GDA acquired another 153 acre. But 76 farmers who owned 281 acre in 2010, went to the Supreme Court against the high court decision. After seven years, the Supreme Court on November 30, 2016, overturned the HC order and gave its decision in favour of farmers, which meant that GDA had to give compensation to farmers which is twice the circle rate.
The SC had also said that the entire land acquisition issue be resolved in one year, that is, by November 29, 2017, failing which GDA will have to return the land to farmers.
Now with just four days to go before the SC deadline ends, GDA is still counting its money to pay compensation to farmers for land acquisition.
“If by November 29, if we fail to deposit the entire Rs 1,282 crore as directed by the commissioner, we run the risk of shelving Madhuban Bapudham housing scheme altogether,” said an official.


Source- ET Realty

Modi's big move on real estate: Mandatory Aadhaar linkage with property

When Prime Minister Narendra Modi announced demonetisation to fight black money, a valid criticism was that the black money is hoarded more in immovable property than cash. The government, however, has been saying that demonetisation was one step in the fight against black money and more such steps would come.

Now the next big step against black money is round the corner, and this time it's immovable property that's on target. For the first time, a Union Cabinet minister has indicated that Aadhaar linkage with property transactions would be made mandatory.

Union Housing Minister Hardeep Puri has said that he has no doubt the linkage would happen. Speaking to Nayantara Rai of ET NOW, Puri said such a move would go a long way in sucking out black money from real estate and also help in crackdown on benami properties. "Seeding Aadhaar to property transaction is a great idea but I’m not going to make an announcement on that. We are already linking Aadhaar to bank accounts, etc, and we can take some additional steps for property market also,” he said.

Prime Minister Narendra Modi has indicated several times that the government would crack down on benami property. Aadhaar linkage could be one part of that drive.

When asked if seeding Aadhaar with property is a logical conclusion of the government's drive to push Aadhaar to bring transparency in the economy, Puri said, “Absolutely, that’s the way it's heading anyways. I have no doubt that it will happen."

However, according to Puri, while no one can absolutely enforce that a transaction between two individuals is completely transparent, large-value transactions such as property and air tickets could definitely be monitored.

“There is no economy in the world that is entirely cashless. However, people do not feel the need of carrying large wads of cash around in economies that have a stable system. That’s the way we are heading,” he said.

Mandatory Aadhaar linkage to innumerable government schemes and for identification has generated a lot of debate. Several petitions against the Aadhaar linkage are being heard in the court.



Source-ET Realty

Gurgaon development body can now give land use change permits

The department of town and country planning has decided that Gurgaon Metropolitan Development Authority (GMDA) can grant permission for change of land use (CLU) for areas within its jurisdiction. So far, CLU was granted only by DTCP, which has its office in Chandigarh.

One of the main objectives of the move was to ensure that official files do not have to be sent all the way to Chandigarh, but instead can be cleared here itself. In a letter dated November 15, the director of town and planning, T L Satyaprakash, ordered that the entire record of cases of grant of permission for change of land use and related matter be shifted to GMDA. He also directed that the district town planner (DTP) and his staff be attached to GMDA.

“The permission to grant a change of land use of any area that falls within the jurisdiction of the newly constituted GMDA, will now be granted by it. This move will also help GMDA generate revenue in the form of external and internal development charges. On an average, nearly 10 CLU applications are received in a month. However, the power to issue licenses to private builders will continue to remain with DTCP,” Satyaprakash told TOI.

The Gurgaon MP has welcomed this move by the Khattar government.

Rao Inderjit said, “We have been saying that all approvals related to the growth and development of Gurgaon be granted here itself and I am glad that the CLU can be granted by GMDA authorities. Approvals of big projects tend to take longer as the files are sent to Chandigarh for getting the nod and the pace of development decreases significantly. I hope that more and more approvals are granted here itself.”

Elaborating on the time constraints for approving CLU, assistant town planner Narendra Kumar said, “Earlier, the prescribed time limit for approving CLU was three months but under the Haryana Right to Service Act, the time limit has been brought down to 45 days. The approval has to be given in 45 days, provided all documents are in place and the required fee is deposited. However, people will no longer have to run to Chandigarh for CLU.”

Kumar said while an in-principle decision has been taken, the GMDA Act will have to be amended to factor the new rules.

“Any individual or firm can apply for CLU. The minimum land required for CLU is 1000 square metre. However in some cases, like for setting up a guest house, the minimum area required is 500 square metre. Usually, the CLU applications that are received are for setting up guest houses in residential areas or setting up warehouses, among other things, in areas that are earmarked for such activities.”

According to GMDA officials, the procedure to get all related files and documents from the department of town and country planning is currently on. “The process of transfer of all documents and records is on,” said a senior GMDA official. 

Source- ET Realty

IFC, HDFC to create $800 million affordable housing fund

In a move that could provide a fillip to affordable housingfinance in India, the International Finance Corporation, a member of the World Bank Group, has partnered with the country's largest mortgage lender HDFCto create an $800-million fund to finance construction of affordable houses.

To create this fund, IFC will pump in $200 million by subscribing to masala bonds, rupee-denominated instruments, issued by HDFC and to be listed on the London Stock Exchange. HDFC will contribute the remaining $600 million from its own resources.

The first such fund in the country will support the prime minister’s vision of 'Housing for All' by 2022. Property developers can borrow from this fund if they build homes that qualify as affordable under the Pradhan Mantri Awas Yojna. The fund will be managed by HDFC.

“We started working on Indian affordable housing segment in 2009. Our exposure to this segment in India is around half-a-billion dollar so far and we’ll continue to look for opportunities to invest further.

The credit behaviour of this class of borrowers is extremely good. Providing a roof over someone’s head serves a lot of purpose and at the same time it makes solid business sense too,” Subrata Dutta Gupta, South Asia Lead for Housing, IFC, told ET.

According to estimates, India needs to build 19.6 million affordable homes to provide housing for all. Of this, 11 million are to be in the urban areas and the rest in villages.

Computing five members to a household, those 19.6 million homes will provide a roof to nearly 100 million people.

According to Gupta, home ownership not only improves the quality of life directly, but also gives a fillip to the economy by increasing activity and creating a large number of jobs, which is one of the strategic priorities of IFC.


Source- ET Realty

Five companies in fray to prepare Jewar airport report

 Five companies have come forward to prepare the Techno-Economic Feasibility Report (TEFR) for the sanctioned international airport at Jewar, Yamuna Expressway Industrial Development Authority (YEIDA) stated on Wednesday. The tender was floated on November 11, 2017.

The selected company will be finalized by next month. According to YEIDA officials, the five companies include KPMG, Ernst & Young, Deloitte, McKinsey & Company and Larsen & Toubro.

"We have scheduled a pre-bid meeting for all applicants on November 24. Thereafter, the technical bids will be finalized on December 11, 2017and the financial bids a few days later," said Arun Vir Singh, CEO, YEIDA.

Source-  The Times of India

Haryana govt to auction 100 acres from Global City land pool

GURUGRAM: The Haryana state industrial and infrastructure development corporation (HSIIDC) has decided to auction 100 acres from the land pool allocated for the Global City project.

The auction will be done in parts and, in the first round, the corporation will put 20 acres adjoining the Dwarka Expressway on the block.

According to HSIIDC officials, latest estimates for the Global City project have thrown up a requirement of a little over a 1,000 acres. Consequently, a chunk of land measuring around 100 acres is avaliable for other use. “We have decided to go with just 20 acres in the first round of auction to test the market and will then plan the subsequent auctions accordingly. The land is on either side of the Dwarka Expressway,” said Manoj Pal Singh, additional general manager, HSIIDC and head of the Global City project at HSIIDC.

Registrations for the first round have been opened and the last date to do so is December 13, 2017. The procedure and details for the registration are available on the HSIIDC portal.

Intially, 1,383 acres were acquired for the project which has hit multiple hurdles. The Global City project is yet to be launched. The Manohar Lal Khattar government is keen on launching it at the earliest.

Singh said the land comes under mixed use development and is also applicable for benefits under the transit oriented development (TOD) policy. Since it is right next to the expressway, which is being developed as a national highway, HSIIDC hopes the auction will fetch it a good price.

Talking about the expected price Singh said, “As of now, we don’t have any idea because different reports are projecting different prices. It is because of this reason that we have kept the reserve price open for the auction.”

However, according to sources at the corporation, the land should at least be worth around Rs 100 crore going by the prevailing rate of Rs 5 crore per acre. If it is anything less than that, the corporation would not make any substantial margins. The auction will also bring some relief for the corporation, which has been facing financial problems lately.

TOI had earlier reported that the HSIIDC has a huge debt of Rs 9,775 crore on account of increased land compensation costs to allottees across major industrial projects.This amount is the sum of all loans taken by the corporation till May 2017 for 18 different industrial projects.

  
Source- ET Realty

Govt triples home loan limit for central govt employees to Rs 25 lakh

NEW DELHI: In a move that can give a fillip to the housingsector, the government on Thursday more than tripled the maximum amount that a central government employee can borrow from the government to Rs 25 lakh, from Rs 7.50 lakh earlier.

Revising the house building advance (HBA) rules incorporating the accepted recommendations of the 7th Pay Commission, the government also increased the amount that a central government employee can borrow for expansion of their homes to 34 months of basic pay to a maximum of Rs 10 lakh, from Rs 1.80 lakh earlier.

Cost ceiling limit of the house which an employee can construct or purchase has been increased to Rs 1 crore, with a provision of upward revision of 25% in deserving cases, from Rs 30 lakh earlier.

"People can now migrate from home loans taken from financial institutions and banks to HBA, if they so desire. This attractive package is expected to incentivize the government employee to buy house/ flat by taking the revised HBA along with other bank loans, if required. This will give a fillip to the housing infrastructure sector," the government said in a press release.

Both spouses, if they are central government employees, are now eligible to take HBA either jointly, or separately. Earlier only one spouse was eligible for HBA.

The government has also fixed the rate of interest on HBA to 8.5%, in place of the earlier four slabs of interest rates ranging from 6% to 9.50% for loans ranging from Rs 50,000 to Rs 7.5 lakh. This rate will now be reviewed every three years. It has also withdrawn the proposal to for adding a higher rate of interest at 2.5% above the prescribed rate during sanction of HBA.

There is no change in the payment schedule. People can pay the principal first in the first 15 years, in 180 monthly instalments, and interest thereafter in next five years in 60 monthly instalments.

The house constructed or purchased with the help of HBA can be insured with the private insurance companies which are approved by the Insurance Regulatory Development Authority.

Source- ET Realty