Buying Huda home? Pay in 3 months

GURGAON: Reeling under financial crisis, Huda has decided to tweak the payment policy of properties bought in auction. In a bid to raise money quickly, the authority is planning to reduce the payment time from six years to 120 days.

Till now, buyers of Huda property had to pay the amount in six instalments. Buyers of residential property had to pay the amount in six annual instalments over six years, while for commercial and institutional properties, buyers had to pay the amount in six instalments over three years. Under the new policy, which is expected to be implemented from next year, the entire amount has to be paid in just three months from the date of auction.

“New policy for collection of money from auction of property is under active consideration,” said Huda administrator Yashpal Yadav, adding that buyers will soon have to make the entire payment in just 120 days. “This will help in early collection of money from auction of property,” he said.

However, real estate experts believe the reduced time limit will discourage buyers, defeating the reason for implementing the policy in the first place. “Most of the people go for Huda properties only because they get considerable time for payment. This used to be of great benefit, particularly in case of commercial property, as it brings down the initial investment in the project,” said Suresh Gupta, who deals in real-estate. He added that with the new policy, buyers will have to make payment in a short span of time, which will increase the initial investment cost.

Huda has already prepared plans to hold weekly auctions from November onwards, which will not be affected by the proposed change in policy. But instead of random auctions of properties across the city, Huda will auction property from one sector at a time.

The authority has a large number of unsold residential, commercial and institutional properties in various sectors of Gurgaon.

Huda had auctioned around 91 commercial properties in Gurgaon, Dharuhera and Rewari in March, but managed to sell only ten of them. However, it has managed to raise significant amounts in recent auctions, collecting Rs 135 crores from the auction of three plots for schools in September.

Five acres of land reserved for senior secondary schools in sector 47 and 56 were sold for Rs 60 crore each. The reserve price of land was Rs 34 crore but it was auctioned for Rs 60 crore. Another plot of 1.25 acre in sector 52 was sold for Rs 15.5 crore.

SOURCE: ETRealty

Need Real Estate Act that regulates builders as well as authorities

Zee Media Bureau

It is premature to imagine that the real estate regulator which comes into existence, as and when the Real Estate (Regulation and Development) Act is notified, will act as a panacea for all the ills of the realty sector in India.

There is no reason why the seeds of speculation won't germinate on the efficacy of the Act. While the Real Estate Act have come into existence in 2016, after being in limbo for eight long years-it was first mooted in 2009, its strength would be measurable only when states adopt the spirit of the Act and initiate steps in cleansing the sector of its bad practices.

Buyers in Indian real estate sector have numerous stories to tell on builder irregularities, delayed projects, cheating, poor construction quality and so on. As per industry reports, more than half of housing projects across the country fall in 'delayed' category. When taken to task by courts for delay in handing over the property to home buyers, some builders have been affront in saying that they have no money to pay to the buyers!

The Real Estate (Regulation and Development) Bill, 2016, which was passed by Rajya Sabha on March 10 and by Lok Sabha on March 15, has already have 69 of the total 92 sections of the Act in force from May 1, 2016. 

The Act is likely to expose not just big players. The opaque practices of smaller and unlisted players, who comprise the greater landscape of the realty sector will also come under the scanner. We can expect some discipline among builders regarding promises made while selling the project, executing and even handing over the project.

There are many instances, when builders have handed over the property to buyers under pressure even without obtaining the Occupancy Certificate from the local authority.

The Act promises major reform in the commercial as well as residential sector, and ensures timely completion and handover of those. It will also be required to dispose of complaints within 60 days.

While the ills in the sector may have been starkly outlined by the Act, builders have also brought forth the concerns falling their way from the government quarters. The Builders Association of India have sought a time-bound system of granting permission to projects by government agencies and has called for making the authorities also fall under the purview of the Act.

The builders would like to have a single window clearance system, exemption of the ongoing projects from the Act, as well as abrogation of the clause for imprisonment.

The Builders Association of India (BAI) has also urged the Union government to form a Cement Regulatory Authority to prevent cartelisation in the cement industry, and has sought for addressing numerous issues that add to the delay in completion and handing over of a project.

So, notification of the Real Estate Regulation and Development Act would be just a beginning towards cleaning up the realty sector. And it is not just builders who have to set their record straight. Even the authorities have to become party to meeting the deadlines.

SOURCE: ZEE BUSINESS

All home buyers may now get relief for delay in delivery by builders

NEW DELHI: In a judgement that is sure to put huge financial burden on already cash-crunched real estate developers, all home buyers of a housing project will automatically be the party to a case filed against the builder.

The ruling says, under Section 12 (1) (c) of the Consumer Protection Act, irrespective of whether they have filed the case or not, buyers will be eligible for the benefits, according to a National Consumer Disputes Redressal Commission (NCDRC) judment on Friday.

“The failure of the builder/ developer to deliver possession of the flat / plot sold to them and a complaint filed for the benefit of or on behalf of all such consumers and claiming same relief for all of them, would be maintainable under Section 12(1)(c) of Consumer Protection Act,’’ the commission said while interpreting the Section 12(1)(c) of the Act.

“The interest of the persons on whose behalf the claim is brought must be common or they must have a common grievance which they seek to get addressed. The defect or deficiency in the goods purchased, or the services hired or availed of by them should be the same for all the consumers on whose behalf or for whose benefit the complaint is filed. Therefore, the oneness of the interest is akin to a common grievance against the same person,’’ it added.

“This is a pathbreaking judgement for buyers, who would now get the benefits without going through judicial process,’’ said Sahil Sethi, senior associate at law firm Saikrishna & Associates, who represented home buyers against Jaypee in Kalypso Court case.

However, Sethi feels this judgement would maximise the compensation burden on builders as they will now have to pay everybody, which they might not be able to honour. Buyers can also now move NCDRC if the aggregate of the value of the goods or services and the compensation claimed in the complaint exceeds Rs 1crore. Also, in case the grievance of the consumer is common and an identical relief is claimed for all of the applicants, the cost, the size, area of the flat/plot and the date of booking/allotment/purchase would be wholly immaterial, according to the order.

“I also fear the automatic application of compensation on all buyers would now apply to investors as well, who might actually exploit the situation,’’ he added.

Consumer activism has been on a rise in the recent past and favourable judgements against big real estate players have infused faith among the home buyers to move court.

NCDRC has recently acted against many big names in the industry on complaint of home buyers. The commission recently asked Jaypee to pay 12% interest for for delaying its Kalypso Court project in Noida. In another order, it also asked Mumbai-based builder Lodha group to refund `1.02 crore to a buyer with 18% interest.

NCDRC on May 6 directed Parsvnath Developers to refund the entire amount paid by around 70 home buyers in its Parsvnath Exotica project in Ghaziabad with 12% interest for failing to complete the apartments on time.

The order would apply to all old and new such cases filed under Section 12 (1) (c) of the Act, according to Sethi, which would surely make life tough for defaulting real estate developers.

SOURCE: ETRealty

Govt funding for 60 smart cities may be increased by Rs 6,400 crore

NEW DELHI: In the second year of the Smart Cities Mission, the Ministry of Urban Development (MoUD) is seeking a Rs 6,400 crore push to one of Prime Minister Narendra Modi’s pet initiatives.

With 60 cities in different stages of implementing the programme, the ministry is looking to increase its outlay by nearly 80%.

The urban development ministry has written to the finance ministry that the outlay of Rs 3,600 crore for the current fiscal is insufficient and needs to be increased to Rs 10,000 crore at the revised estimates stage, terming the enhanced outlay “critical” funding over the next four months.

To underline the urgency, the ministry has also written to the Prime Minister’s Office to weigh in, officials said.

Of the 100 cities under the mission, 20 were selected last year through the ‘India Smart Cities Challenge’.

In the second year, these 20 cities need to be given Rs 100 crore each by the Centre. This translates into a commitment of Rs 2,000 crore.

This year, a second fast track round was conducted to choose 13 cities, which need to be given Rs 200 crore each, or Rs 2,600 crore in all. The last round, concluded in September, threw up another 27 cities, which again need Rs 200 crore each, or support amounting to Rs 5,400 crore.

“The total outlay should be Rs 10,000 crore but the mission has been earmarked only Rs 3,600 crore. The shortfall of Rs 6,400 crore needs to be made good. This is why we have sought additional funds,” a senior ministry official told ET.

The official further said, “It is critical to the progress of the mission. We have reached the halfway mark and now cities will be implementing projects. Funds are critical here.”

Since the PMO is closely monitoring the flagship programme, the ministry has impressed upon it that the funds are necessary for its timely implementation, the official said.

Source:-ET Realty 

REALTY CHEERS RATE CUT IN THE ONGOING FESTIVE SEASON

Considering the political and international turmoil happening all around, the RBI was likely to keep the key rates unchanged but amid varied speculations, the apex bank has finally laid rest to the expectations by cutting the repo rate by 25 basis points in it’s latest policy review. The new repo rate now stands at 6.25 percent from the previous 6.50 percent. Reverse repo rate is now at 5.75 percent; Cash Reserve Ratio (CRR) at 4 percent and Statutory Liquidity Ratio (SLR) at 21.5 percent respectively, remains unchanged. This rate cut coming during the festive season is sure to boost sentiments both among lenders and borrowers because this benefit if passed well to the buyers is sure to provide cushion to all. This also happens to be the first monetary review policy by the newly appointed RBI Governor, Urjit Patel, and this rate cut will allow the realty sector in the country to blossom during the festive season. 

Industry Reacts:

Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd.
With the ongoing festive season, realty sector of our country could not expect for a better news than a repo rate cut. At this point of time when the sentiments are positive and people are eager to buy and invest in property, banks will now cut interest rates, that will allow buyers to get their EMIs reduced. The demand will witness a better rise in the current festive season which will allow the inventory to clear in major metro cities. Realty sector welcomes this move by RBI and this being Urjit Patel’s very first policy review.

Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

This move was pretty much on the cards looking at the economic recovery witnessed over the last couple of quarters. For long there has been no reduction offered by the other banks but with the festive mood already set in and people looking for better and better options, banks can cash in well and allow further support to the real estate sector.

Vaibhav Jain, CMD, Rise Group 

RBI has been extremely pro-active in terms of bringing relief to the economy and pushing the banks forward to provide final benefit directly to borrowers through reduced EMIs. Real estate sector in particular was in dire need of a repo rate reduction as we are standing in the final festive season of the year. Sentiments will now become better as customers will be expecting banks to lower their rates that will be profitable for them prior to a big purchase such as, property.

Dhiraj Jain, Director, Mahagun Group 

There exists a direct relation between reduction in lending rates by banks and an increase in demand for property. It is then just a matter of proper timing by the banks while adjusting the rates. The festive season of the Hindu calendar has just commenced where massive demand is observed every year, and this is the time when potential customers plan and allocate their funds for the big purchase.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

A fall in lending rates today will promote the sentiments in the market and allow people to strategise their upcoming purchase as the maximum purchase decisions involving big amounts are made during this period. RBI has played its part well today and now the ball is in banks court. This will not only enhance the purchasing power of the customers but also allow them to even go ahead with a better purchase.

Kushagr Ansal, Director, Ansal Housing

This rate cut has come at the most opportune moment which could have happened on the doors of Indian real estate. There had been many positives building up to this festive season like the RERA already passed, GST to be implemented by the onset of the next financial year, considerable reduction in FDI limitations, the only stone left unturned was a rate cut by the apex bank. Now, with the cut also done by the apex bank, there could have been no better sentiment enhancer for the already upbeat mood in the real estate sector.

1,500 low-cost flats in Gurgaon & Rewari up for grabs

GURGAON: In last five years, the Haryana Urban Development Authority (Huda) has found no takers for its low-cost Ashiana flats in Gurgaon and Rewari. Constructed for people belonging to the economically weaker section (EWS), not a single flat could be allotted to the beneficiaries, as the urban development authority failed to identify eligible recipients.

In a fresh bid to allot low cost flats, Huda has invited applications for around 1,500 houses. Around 1,088 flats located in Gurgaon’s Sector 47 and another 408 flats in Rewari’s Sector 18 are up for grab.

The low-cost housing for EWS had been approved in October 2009 and Huda had begun the construction work as part of its Ashiana project, under its integrated housing and slum dwellers programme (IHSDP), to provide an hygienic living space with basic amenities to slum dwellers.

Huda constructed around 9,990 low-cost units in urban areas of the state, including Gurgaon and Faridabad, with allotment preference given to encroachers of government land who had approached courts for regularisation of long-existing colonies and providing alternative shelter before eviction.

A total of 1,088 units were constructed in Gurgaon at the cost of Rs 40 crores, the first lot of 560 units was constructed in 2010 while another 528 units were constructed in 2014-15. A report submitted in the state assembly in 2015, had mentioned that 204 applications were received from Gurgaon, but none were found to be eligible. This time, Huda has clearly mentioned the eligibility criteria while inviting applications. The Ashiana flats will be allotted to slum dwellers, people who have encroached upon government land and have been staying there for more than five years, people with BPL card and people from EWS category.

“We have invited applications and only after their scrutiny, units will be allotted to the eligible through draw,” said Huda administrator Yashpal Yadav. The units are available in two sizes – 30.60 square metre and 34.30 square metre — and it will cost in between Rs 3.70 lakh and Rs 3.90 lakh.

SOURCE: ETRealty

4 new bridges across River Hindon to improve Noida-Gr Noida connectivity

NOIDA/GREATER NOIDA: In an attempt to enhance connectivity between the cities of Noida and Greater Noida, the twin authorities have in principal approved the construction of four new bridges across the River Hindon. These facilities will not only bring the two cities closer but also provide connectivity to Faridabad, Ghaziabad and Delhi. A joint meeting was held between senior officials of Noida ad Greater Noida last month and the project was to seek an approval from the joint Board meeting to have been held on Monday, Oct 3, which has now been postponed, officials said.

According to officials, while the bridges will be constructed by the Uttar Pradesh State Bridge Corporation Limited, the cost of the project will be shared by the Noida and Greater Noida authorities. “Each bridge is expected to come at a cost of Rs 55 crores. Once we have the approval from the Joint Board, work on the bridges will start within a month and will take about a year to completion,” said Rajeev Tyagi, General Manager, Projects, Greater Noida Industrial Development Authority (GNIDA).

Explaining the locations of the proposed bridges, officials said that one of the bridges will be constructed between Noida’s sector 150 via Illahbas village near sector 86 to sector Chi-Phi up to 80-meter wide road, which joins the two cities. A second bridge will be on the road between Greater Noida’s Knowledge Park-2 and 3 near the 75-meter wide road, which is proposed to connect to Faridabad and Noida’s 150 meter wide road. A third bridge will be located from near LG roundabout in Greater Noida to Knowledge Park-3, which connects to a 75-meter wide road near Hindon canal and road between Noida’s sector 146 and 147. A fourth bridge between Greater Noida’s sector 1 and Techzone-4 and Noida’s sectors 112 and 115 has already been constructed but has been proposed to be extended by service roads on either side of the bridge. This bridge also needs building of an approach road from Noida side.

Officials further told TOI that all the bridges will assist in decongesting areas of Pari Chowk in Greater Noida, Greater Noida (west) area and the Noida-Greater Noida expressway. “While the bridge between LG roundabout and sectors 146 and 147 will decongest Pari chowk as traffic can bypass Pari Chowk, it will also provide commuters with an additional road between the two cities other than Noida-Greater Noida expressway,” said Tyagi. “The existing bridge between Greater Noida’s sector 1 and techzone-4 to Noida’s sectors 112 and 115 will help commuters who travel to Greater Noida (west) and Noida’s phase-III area, which will soon house nearly 3 lakhs residents,” he further explained. “This bridge will also be useful for commuters who want to travel between Noida, Greater Noida and Ghaziabad,” he added.

The new bridges will be 210 meters in length and will have a carriageway of 18.5 meters width on each side. The service roads for the existing 8-lane bridge, which is yet to be opened for commuters, will be 7.50 meters on each side and will support a length a 210 meters. “Both authorities have been directed to acquire land for the bridges and approach roads wherever required and also to incorporate them in their respective master plans for future development,” Tyagi said.

SOURCE: ETRealty