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Team iPropUnited

Team iPropUnited
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MahaRERA Faces Criticism Over Delays in Hearing Home Buyers’ Complaints

MUMBAI: Jayshree Sukhadia, a resident of Chira Bazaar, files a complaint with MahaRERA seeking justice after facing demands for additional payment and failure to refund Rs 13 lakh for a flat booked in 2017. The first hearing on Sukhadia’s case is delayed for a year, reflecting the backlog and delays faced by home buyers in Maharashtra.

Sukhadia’s complaint, filed in October 2020, finally receives its first hearing in October 2021, leading to its referral to the conciliation forum. However, the conciliation efforts fail in March 2022, leaving the case without a future hearing date.

The plight of Sukhadia is not unique, as many home buyers find themselves in a similar situation. Out of the 21,274 cases filed with MahaRERA to date, a staggering 6,989 cases are either pending or in the process of being heard. The delay in addressing these complaints has had a detrimental impact on home buyers, prompting some to seek redress through consumer courts instead of MahaRERA.

The authorities at MahaRERA attribute the prolonged hearing process and complaint resolution delays to the vacancies within the regulatory authority. Presently, only two members, including the chairman, are available to hear complaints, leading to a significant backlog. Despite protests and representations, the state government has failed to replace the members whose terms expired.

Anil Dsouza, secretary of the MahaRERA Bar Association, expressed concerns, stating, “In other courts, the next hearing date is typically scheduled within two to three months. However, in MahaRERA, obtaining the next hearing date itself takes over a year. Matters are often adjourned sine die, without providing a future date. How can the reduced number of benches manage the increasing number of complaints?”

He added, “Around 300 fresh complaints are filed with MahaRERA each month. However, the two existing benches can only dispose of a similar number of complaints monthly. For the past two years, MahaRERA has operated with only two members in addition to the adjudicating members. Although the government attempted to appoint additional members, the appointments did not materialize. Appointing just one member would resolve the problem and clear the backlog of complaints.”

A MahaRERA official commented, “Valsa Nair Singh, additional chief secretary, housing department, did not respond to this correspondent’s call and text message seeking comment.”

Advocate Godfrey Pimenta, representing the Watchdog foundation, highlighted the requirements of Section 21 of the Real Estate (Regulatory and Development) Act, 2016. Pimenta emphasized, “The authority should consist of a Chairperson and at least two full-time members appointed by the government. Currently, MahaRERA only has a chairperson and one member. The Adjudication Officer appointed under Section 71 of RERA cannot be considered for the purposes of meeting the member composition mandate under Section 21 of RERA.”

Pimenta pointed out that the Real Estate (Regulatory and Development) Act, 2016, also stipulates the disposal of complaints within 60 days. However, MahaRERA struggles to achieve this due to the state government’s failure to fill vacancies. Pimenta suggested, “When filling the vacancies, the state should appoint members with a judicial background instead of retired IAS officers.”

Dsouza concluded “We have written to the chief minister, the deputy chief minister, and the Chief Justice of the Bombay High Court to address the appointment of additional members,” added Dsouza, emphasizing the urgent need for action.

The delays and backlog faced by MahaRERA have left home buyers in Maharashtra frustrated and disillusioned. The Real Estate (Regulatory and Development) Act, 2016, which was established to protect buyers from unscrupulous developers, seems to have fallen short of its intended purpose due to the inefficiencies within the regulatory body.

The lack of timely hearings and prolonged resolution processes have forced many home buyers to seek alternative avenues for justice, such as consumer courts. This not only adds to their legal expenses but also undermines the credibility and effectiveness of MahaRERA.

As the number of complaints continues to rise, it becomes imperative for the state government to take immediate action to address the vacancies within MahaRERA. Appointing additional members, particularly those with a judicial background, would help expedite the hearing process and clear the mounting backlog of cases.

The MahaRERA authorities must also consider implementing measures to streamline their operations and ensure efficient complaint resolution. By adhering to the mandated 60-day timeline for complaint disposal and providing regular hearing dates, MahaRERA can restore confidence among home buyers and fulfill its intended role as a reliable platform for seeking justice.

The plight of home buyers like Jayshree Sukhadia serves as a stark reminder that the real estate sector in Maharashtra requires a robust and responsive regulatory framework. Only through timely and effective dispute resolution can the interests of home buyers be protected and the trust in the real estate market be restored.

It is now up to the concerned authorities to address the concerns raised by home buyers, legal experts, and associations like the MahaRERA Bar Association and the Watchdog foundation. By taking immediate action to fill vacancies, appoint qualified members, and streamline the complaint resolution process, MahaRERA can regain its credibility and ensure justice for home buyers across Maharashtra.

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YES Bank, IRFC, and Indiabulls Real Estate Witness High Trading Activity; HDFC Bank and Mankind Pharma Lead Turnover

In the latest market update, shares of YES Bank, Indian Railway Finance Corporation Ltd (IRFC), Indiabulls Real Estate Ltd, Suzlon Energy Ltd, and other companies have experienced significant trading volumes. Meanwhile, HDFC Bank, Mankind Pharma, and other banking shares lead the turnover chart on the exchange as of 11:20 am on Wednesday.

IRFC shares saw a 2.13% decline to Rs 32.30 on the NSE, accompanied by high trading volumes. A total of 529,120,040 IRFC shares were exchanged, amounting to Rs 170.74 crore.

Among the mainboard stocks on the NSE, Indian Railway Finance Corporation Ltd (IRFC), Punjab National Bank (PNB), YES Bank Ltd, Brightcom Group, Indiabulls Real Estate Ltd, and Suzlon Energy Ltd dominated the volume chart. Meanwhile, HDFC Bank Ltd, ICICI Bank Ltd, and the recently listed Mankind Pharma Ltd topped the turnover chart.

IRFC shares experienced a 2.13% decline to Rs 32.30 on the NSE with significant trading volumes. A total of 529,120,040 IRFC shares were exchanged, amounting to Rs 170.74 crore.

PNB witnessed 478,455,595 shares changing hands in the morning trade, with the stock plunging 4.38% to Rs 48.05 on the NSE. YES Bank (382,545,533 shares), Suzlon Energy (205,668,880 shares), Indiabulls Real Estate (182,613,373 shares), and JP Power (155,464,428 shares) were among the stocks that saw declines of up to 2% alongside high trading volumes.

Indiabulls Real Estate shares made headlines after the real estate developer announced that the National Company Law Tribunal (NCLT), Chandigarh Bench, had withheld the sanction for the merger of NAM Estates Private Limited and Embassy One Commercial Property Developments (Embassy One) into Indiabulls Real Estate.

Brightcom Group shares surged 4.86% to Rs 12.95, while Zomato saw a 2.05% increase to Rs 62.20. IRCON International added 0.5%.

In terms of value, HDFC Bank led the turnover chart with Rs 1,663 crore. The stock garnered attention due to reports suggesting potential outflows of $150-200 million for the merged HDFC entity. Index aggregator MSCI updated its clients, stating that it would use an adjustment factor of 0.50 to calculate HDFC merged company weightage.

HDFC Bank was followed by ICICI Bank (Rs 1,104 crore), Mankind Pharma (Rs 567.66 crore), and Axis Bank (Rs 567.63 crore). Other stocks like State Bank of India (SBI), Reliance Industries, Kotak Mahindra Bank, IndusInd Bank, and Tata Motors also witnessed high turnover during the morning trade.

Among the top 10 stocks, four out of six banking stocks were trading lower, with SBI leading the chart with a 1% decline. Shares of Paytm parent company One 97 Communications saw a 2.47% increase.

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Columbia Pacific Communities to Invest INR 200 Crore in Senior Living Projects, Aims for 2 Million Square Feet Development in India

US-based Columbia Pacific Communities (CPC) has unveiled plans to invest approximately INR 200 crore in the development of 2 million square feet (msf) of senior living projects across India within a span of two years. By the end of the fiscal year 2024-25, the company aims to have eight communities, featuring around 2,000 homes, under construction and available for sale across nine cities in India.

“We are planning to add about 800-1,000 senior living homes every year, with a potential revenue of INR 150-200 crore per project,” revealed Mohit Nirula, CEO of Columbia Pacific Communities, in an interview with Moneycontrol.

Presently, CPC operates in Bengaluru, Coimbatore, Chennai, Kanchipuram, and Pondicherry. Furthermore, the company has outlined its expansion into Pune by the end of December 2023. Nirula stated, “In FY 2024-25, we will foray into Mumbai, Hyderabad, and Kolkata for the first time. We will add at least one project in Bengaluru, two in Chennai, and one or two projects in Hyderabad over the next two years.”

The partnerships in Hyderabad and Kolkata are currently in an advanced stage and are expected to become active in FY 2023-24.

CPC has already collaborated with the Nyati Group for a senior living development in Pune, involving an investment of INR 150 crore. Additionally, CPC recently launched a senior living project in Chennai with TVS Emerald, anticipating a potential revenue of INR 175 crore.

Senior living projects and assisted living communities are residential apartments designed for seniors, incorporating special features such as wheelchair-friendly doors, anti-skid flooring, and assistive care to address age-related challenges. Such projects have already emerged in cities like Bengaluru, Hyderabad, Chennai, and Coimbatore.

Nirula further explained that CPC currently offers independent senior living models, where seniors can live autonomously without requiring support or care for their daily activities. However, services like housekeeping and gardening are managed by service providers. “However, today we are looking at a new model called assisted living communities (or rental models), where seniors will require assistance even for their daily activities,” he added.

Under this model, seniors can rent senior living apartments on a monthly basis after paying a deposit, similar to renting standard residential apartments. CPC will charge the developer a certain percentage of revenue as management fees, while providing expertise in design, marketing, and operations. The developer will be responsible for constructing and selling the project.

The first assisted living project will be launched in Bengaluru next year, followed by another one in Chennai. These apartments will require a deposit amount and a rental fee ranging from INR 25,000 to INR 30,000 in cities like Bengaluru. Nirula clarified, “When the senior leaves, the asset will be returned to the developer, and the deposit will be refunded.”

He noted that such models offer flexibility to the senior living sector in India, particularly for older residents whose children reside in other cities. Renting an asset instead of making a substantial investment allows residents to easily adapt to their living arrangements. However, Nirula acknowledged that introducing a rental model for senior living poses challenges in the Indian market.

“The cost of land in the country is much higher, and in such models, capital investments will be significantly greater. Nonetheless, these projects can yield a rental return of 5-6 percent. The combination of rental income, interest on the deposit.

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Maharashtra CM Takes Steps to Address Stalled Redevelopment Projects in Mumbai

Maharashtra Chief Minister Eknath Shinde has announced a comprehensive review of stalled redevelopment projects in Mumbai, with the aim of defining a new policy to help affected residents. During a meeting with a delegation of residents from Dadar area, Shinde emphasized the need for a policy that will provide a quick and lasting solution for the affected residents

The move has been applauded by Sandeep Runwal, President of NAREDCO Maharashtra, who believes that stalled redevelopment projects have become a bane for many residents of Mumbai, depriving them of basic shelter. He welcomes the initiative taken by the Chief Minister and hopes to work together to find a solution.

Vivek Mohanani, Managing Director & CEO of Ekta World Limited, has also welcomed the move, stating that the aftermath of the pandemic and the liquidity crunch faced by the housing industry has led to many redevelopment projects getting stalled. He believes that the government’s efforts to alleviate the suffering of affected residents are commendable.

The Chief Minister has also emphasized the need to pay attention to original homebuyers in Mumbai who have had to move out of the city due to stalled redevelopment projects. He has assured that the government is exploring other mechanisms to complete these projects and find an immediate solution for affected residents.

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Noida Property Prices to Surge as Noida Authority Increases Land Allotment Rates

In a move that suggests a sharp increase in property prices in Noida, the Noida Authority has decided to raise the land allotment rates for residential plots, group housing, and institutional plots by 6-10%. The decision was made in the latest meeting of the authority, continuing the policy stance from the previous year.

Last year, the Noida Authority had also increased the circle rates by 10-15%. As a result, property buyers looking to purchase property in Noida for constructing homes and industrial setups will now have to increase their budgets.

However, property rates in the A-Plus residential sectors remain unaffected, providing some relief to end-users.

Sanjay Sharma, Director of SKA Group, advised investors to invest in existing and upcoming residential projects in light of the circle rate hike and the growth in the real estate industry. He suggested that with recent developments like the advent of Jewar Airport in the vicinity, buyers might prefer investing in regions and projects in Greater Noida due to its affordability and future growth prospects.

Salil Kumar, Director-Marketing and Business Management, CRC Group, believes that Noida’s property prices will inevitably rise after the circle rate hike announcement, encouraging homebuyers to invest in Greater Noida, which is in close proximity.

Amit Jain, Director, Mahagun Group, expressed concern about the hike in circle rates by the Noida Authority and its impact on property prices. Amit Modi, Director County Group & President Credai (WUP), suggested that the timing of the rate increase could have been better given the high inflation and interest rate hikes.

Meanwhile, the Noida Authority has specified that there will be no increase in the allotment rates of residential flats and commercial properties built and leased by it, respectively. However, residential plots in the E category have seen a maximum rise of 10%, whereas plots in A, B, C, and D categories saw a hike of 6%.

According to Deepak Kapoor, Director, Gulshan Group, the increase in the allotment rates announced by the Noida Authority might cause a snag in property purchasing, more significantly plots. Kapoor suggested that the rapid increase in prices of plots in Noida could push end-users to explore alternative options in other regions.

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First Republic Bank Crisis Raises Concerns About Stability of US Banking System

On Monday, all three key benchmark indices of the US stock market ended lower as market participants reacted to JP Morgan Chase & Co’s takeover of the troubled First Republic Bank. First Republic Bank’s share price crashed to the tune of 46% on the first trade session of the week, raising concerns about the stability of the US banking system. Dow Jones went off 0.14%, S&P 500 index went down 0.04%, whereas Nasdaq corrected 0.11% on Monday deals.

The looming economic slowdown concerns due to bank crisis in the US as Treasury Secretary Janet Yellen warned that the United States could run out of cash and default on its debt repayments as early as June 1, should the government fail to raise the debt limit, added to the cautious sentiment.

Ruslan Lienkha, Chief of Markets at YouHodler, a Swiss-based international fintech platform, stated that while the collapse of First Republic Bank doesn’t directly impact the global economy, it raises concerns about the stability of the US banking system, and a potential bankruptcy of the bank could trigger a broader financial crisis in the country, affecting the real estate market and many other related industries, which could have massive implications for the world economy.

In early morning deals on Tuesday, Asian stock market opened mixed, with Japanese Nikkei fluctuating in between the green and red territory, Shanghai index trading sideways, Hong Kong’s Hang Seng up 1.58%, and South Korean KOSPI up 0.77%. SGX Nifty today opened lower, signaling a weak opening on Dalal Street, and continued to trade weak in a tight 45 points range.

After logging gains on Monday, the US dollar witnessed some profit-taking during the early morning session on Tuesday. The Dollar Index shed 0.09% to 101.785 levels.

In early morning trade in Asian stock market, WTI crude oil price slipped 0.18% to $75.60 per barrel, whereas Brent crude oil price is quoting $79.24 per barrel.

Anuj Gupta of IIFL Securities stated that for the week ahead, crude oil price has immediate support at ₹6050 and then ₹5800 levels on MCX while resistance at ₹6400 levels and then ₹6700 levels. The trend of crude oil is weak, and they are recommending sell on higher levels in crude oil prices. Brent crude oil price is trading around $80 per barrel, and they are expecting it may test $75 to $73 levels very soon.

In the early morning session, the US 10-year bond yield corrected 0.65% and hit 3.551 levels, whereas the US 30-year bond yield corrected 0.49% to 3.798 levels.

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Homesfy Realty Expands to Dubai Amidst High Growth Curve of Real Estate Market

Mumbai-based Homesfy Realty, India’s first listed real estate tech-enabled brokerage firm, has announced its expansion to Dubai, following an impressive 51% increase in transaction value in India during the fourth quarter. The company’s move into Dubai is driven by an increased interest among Indian homebuyers in purchasing property in the city.

According to a statement issued by the company, Homesfy seeks to broaden its horizons globally, with Dubai being its first port of call. “Its unparalleled network of tech-enabled agents will help achieve success in Dubai,” the statement said. Homesfy believes there is tremendous potential in the Dubai real estate market in the coming years, with the growth curve of the market serving as the impetus for the expansion.

“The growth is attributable primarily to the path-breaking policies adopted by the UAE government, which have been instrumental in driving a positive impact across the real estate industry,” company sources said. In recent years, the Dubai real estate market has experienced massive expansion with an upswing in sales to Indian buyers, raking in an impressive sum of Rs 35,500 crore, positioning Indian homebuyers as the leading buyer demographic in Dubai, accounting for 40% of total sales.

Homesfy Founder and CEO, Ashish Kukreja, stated, “Dubai’s progressive governance and trade policies and massive worldwide appeal has made it a popular destination among both real estate buyers and investors, and we aim to capitalize on this opportunity.” Homesfy Realty’s expansion to Dubai is part of its strategic plan to expand globally.

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Karnataka Political Parties Promise to Address Apartment Owners’ Woes Ahead of State Elections

As the Karnataka assembly elections on May 10 approach, political parties have offered solutions to the issues faced by apartment owners in the state. The ruling Bharatiya Janata Party (BJP) and the opposition Congress have both pledged to amend the Karnataka Apartment Ownership Act, 1972, to protect the rights of homebuyers. This includes allowing them to form Resident Welfare Associations (RWAs) to oversee the upkeep of common areas.

The BJP has promised to form a Karnataka Residents’ Welfare Consultative Committee to improve the “ease of living” for homebuyers. The committee will suggest amendments to the Karnataka Apartment Ownership Act, and the BJP has also committed to establishing a Karnataka Home Owners’ Grievance Redressal Cell if it is reelected. Additionally, the party has promised to build 1 million houses within five years and establish metro rail networks for affordable last-mile connectivity in Mysuru, Hubli-Dharwad, and Belagavi.

The Congress party has also pledged to amend the Karnataka Apartment Ownership Act to provide easy and efficient conveyance of land titles to homebuyers. It has also promised to simplify Transferable Development Rights (TDR) and make building bylaws more owner-friendly. TDR is a zoning technique used to protect plots of land that have permanent conservation value.

However, Anil Kalgi, president of the Bangalore City Flat Owners’ Welfare Association, believes that amending the Karnataka Apartment Ownership Act is not enough to solve the problems of apartment owners unless they are allowed to form apartment owners’ organizations as a corporate body. Homebuyers’ primary wish is for resident welfare associations to be recognized as the competent authority to represent their interests and oversee the upkeep of common areas.

Dhananjaya Padmanabhachar, an office bearer in the Karnataka Home Buyers Forum, also noted that political parties have mentioned the implementation of the Karnataka Apartment Ownership Act without mentioning the related Karnataka Ownership Flats Act (KOFA) 1972. KOFA defines the process and guidelines for the formation of apartment owners associations and sets the directions for transferring titles to owners associations.

The absence of clarity in procedures for issuing Development Rights Certificates and acquiring private properties, particularly for building roads and metro routes across cities, has put several municipal corporation projects on hold in Karnataka. Homebuyers have called for more clarity in these procedures and the transfer of land titles to reflect their share in undivided land in the revenue department’s land records.

Overall, political parties’ promises aim to address the issues of apartment owners in Karnataka, but some believe that more needs to be done to fully protect their rights and interests.

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BMC Issues Rs 350 Crore Credit Notes to Builders, Despite No Work Done

The Brihanmumbai Municipal Corporation (BMC) has issued credit notes worth around Rs 350 crore to contractors for building houses for project-affected people (PAP) in Mulund, Bhandup, and Prabhadevi. The contracts have been awarded to Swaas Construction Co, New World Landmark LL, and Classic Promoters & Builders, respectively.

Under this system, instead of paying money, the BMC issues credit notes to the contractors who can then use them to pay municipal taxes or premium charges to the BMC in the future. They can also sell these credit notes to other contractors for money.

According to civic sources, most credit notes were issued to a contractor executing the Mulund project, along with the transfer of development rights (TDR), to construct over 7,439 PAP houses. However, the construction work has not yet started.

While there is no provision for paying credit notes under the MRTP Act, the erstwhile MVA government permitted the BMC to do so. Two decades ago, the state agency MMRDA had done something similar while paying builders to construct PAP houses for them.

Initially, some politicians in the BMC raised concerns about irregularities in the construction of PAPs, but they later went silent, sparking whispers that some senior state politicians may have had personal interests in the matter.

BMC aims to construct 40,000 PAP houses, each measuring 300 sq ft, under the credit notes scheme. To achieve this, it has provided two options to contractors. Under the first option, contractors should have their private land parcel to construct the PAP houses for BMC, and BMC pays them in TDR and credit notes which they can sell in the market to recover their expenses and profit. Under the second option, BMC provides its own land parcel to contractors to construct houses and pays them in the form of TDR and credit notes.

While civic officials have admitted that the biggest legal hurdle in credit notes plan implementation is that there is no provision for them in the MRTP Act, the state urban development department permitted the BMC to implement the credit notes policy citing an earlier MMRDA precedent. However, former Congress group leader in BMC, Ravi Raja, has raised concerns about the legality and transferability of these credit notes.

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Realtors in Rajasthan Violate Mandatory Norms for Quarterly Progress Report Filing, Says RERA

According to the Rajasthan Real Estate Regulatory Authority (RERA), many realtors in the state are not adhering to the mandatory norm of filing online quarterly progress reports (QRPS) for their registered projects.

The QRPS should contain updates on apartments/flats, the status of each building, floor, internal infrastructure, and common areas construction. Other details, including information on approvals, bank account details, revision in plans, licence issues, permits, or approvals for the projects, must also be displayed publicly.

Although RERA launched an online facility for the submission of QPRs, developers have violated the rule, with some not submitting QRP for two years. As a result, RERA issued a notice under Section 11 (1) (e) of Real Estate (Regulation and Development) Act, 2016 against one promoter on July 11, 2022, for non-submission of QPRs since June 2020 to March 2022. However, the required QPRs were not uploaded on the web portal of the authority, and no response was received from the promoter.

A source from RERA stated that the QRP is a transparent procedure that keeps investors informed about the project and the financial health of the developers. If it is not uploaded on time, it can make buyers anxious.

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