web stats
Facebook Instagram Linkedin Twitter
Home Authors Posts by Ruchika Bhalla

Ruchika Bhalla

Ruchika Bhalla
146 POSTS 0 COMMENTS

Government to set up panel with an objective of making Rera more effective and impactful on non-compliance

By
Ruchika Bhalla
-

The decision to setup a panel for RERA to be more effect was taken in the recent meeting of the Central Advisory Council (CAC). The government may also seek inputs from the state governments in this matter to make RERA more effective and offering an impactful recourse mechanism to homebuyers.

Government to assess the reasons for non-compliance of orders issued by various chapters of the Real Estate Regulatory Authority (Rera). The idea of RERA was to ensure protection to distressed homebuyers. A committee including homebuyers and realty developers will be formed to examine different orders that have been passed by the state-specific authorities, but have not been complied with yet.

The decision to setup a panel for RERA to be more effect was taken in the recent meeting of the Central Advisory Council (CAC). The government may also seek inputs from the state governments in this matter to make RERA more effective and offering an impactful recourse mechanism to homebuyers.

While RERA authorities are issuing orders for compensation and interest to homebuyers by the developers, many of these orders are not being complied with. Homebuyers and their associations have been raising concerns over non-enforcement of these orders, and the authorities have been facing criticism.

“Despite the orders getting served, homebuyers are left in the lurch as the enforcement of these orders is taking unreasonable time. The Housing Minister himself suggested this move to form a committee to study the procedure followed by states that rank high in enforcement of RERA orders,” said Abhay Upadhyay, president, Forum for People’s Collective Efforts. He said this will lead to a template for other states to follow so that RERA orders see faster execution.

The government has also decided to form a committee comprising government representatives, homebuyers and developers to take up the issue of implementation of RERA in West Bengal and Telangana.

Follow and Connect with us: Twitter, Facebook, Linkedin, Instagram

#rera #properties #investment #investors #government

Aptus Value Housing Finance Ltd. booked profit of Rs 370 crore in FY22

By
Ruchika Bhalla
-

The housing finance company’s disbursements during the year ending March 31, 2022 grew to Rs 1,641 crore from Rs 1,298 crore.

There is a profit of Rs 370 crore after tax adjustments as reported by Aptus Value Housing Finance Ltd. under the house loans category for the financial year ending March 31, 2022. 

The retail focused housing finance company announced its profit after tax at Rs 267 crore for the corresponding period in the last financial year

Disbursements during the year ending March 31, 2022 grew to Rs 1,641 crore from Rs 1,298 crore registered in the same period last fiscal.

According to company chairman and managing director M Anandan, “During FY2022, we disbursed Rs 1,641 crore registering a growth of 26 per cent year on year. We have built a strong branch network of 208 branches to deliver quality service to our customers”.

“The company is well capitalised with a net worth of over Rs 2,900 crore. As on March 31, 2022, we have maintained a sufficient on balance sheet liquidity of Rs 846 crore including undrawn sanctions in the form of cash and cash equivalents,” he said.

The Gross NPA as on March 31, 2022 was at 1.19 per cent while net NPA stood at 0.88 per cent, the company said.

Follow and Connect with us: Twitter, Facebook, Linkedin, Instagram

#aptus #finance #housing #housingmarket #housingfinance #financeexpert #financeavailable #realestate #property #dreamhome #realestatenews #commercialproperty #moneymanagement #investing #properties #financialintelligence #realestateagent #aptusvaluehousingfinance #affordablehousingfinance

HC ruling to Maharashtra govt- refund Rs 23 lakh towards 2% stamp duty to builder

By
Ruchika Bhalla
-

Many registrars had denied concession offered by the state revenue and forest department to many builders for agreements registered between September 1, 2020, and March 3, 2021. The ruling will have a big impact on the realty sector all over the state said petitioner’s lawyer Kartik Shukul.

The Nagpur bench of Bombay high court has ordered joint registrar-cum-collector of stamps to refund 2% excess amount charged from a builder while registering development agreement of three properties in 2020. This has come as a big setback to Maharashtra government.

Many registrars had denied concession offered by the state revenue and forest department to many builders for agreements registered between September 1, 2020, and March 3, 2021. The ruling will have a big impact on the realty sector all over the state said petitioner’s lawyer Kartik Shukul. The concession offered was to boost the reality sector, which suffered massive losses due to Covid-19 pandemic.

The August 28, 2020, notification reduced the stamp duty by 2% from September 1 to December 21, 2020, and by 1.5% from January 1 to March 31, 2021.

Director Gaurav Agrawal of Sandeep Dwellers Private Limited appealed for the concession in stamp duty for three schemes. However, joint district registrar (Class-1)-cum-collector of stamps rejected his demand and passed an order on December 18, 2020, asking him to pay full duty as per Maharashtra Stamp Act, 1958.

Though the petitioner paid full duty for registration of his schemes, he challenged the registrar’s order, contending that the concession as per August 2020 notification was applicable to him. He also pressed for refund of Rs 23 lakh, which he paid as excess towards stamp duty along with 18% interest per year.

A division bench comprising justices Sunil Shukre and MS Jawalkar, repressing the registrar’s December 18, 2020, order, cleared out that the stamp duty chargeable on conveyance which includes an agreement to sell in respect of any immovable property is originally chargeable at the rate of 5% of the market value of the property as per the Stamp Act.

“The August 2020 notification has reduced this duty to 3% till December 31, 2020, and then 3.5% till March 31, 2021, in respect of the instrument of conveyance. The stamp duty payable on the development agreement is similar to the conveyance under the Act. Therefore, the development agreement would have to be treated at par with an instrument of conveyance and hence it is squarely covered by the August 2020 notification,” the bench said.

While partly allowing the plea, the bench added there are other rights and liabilities created in favour of and against the petitioner which are akin to transfer of immovable property to him by the owners. “Therefore, the development agreements are conveyances within its definition as per the Stamp Act.”

Rejecting the builder’s demand to refund Rs23 lakh with 18% interest, the judges said no interest can be granted as the application of August 2020 notification depends upon interpretation of provisions of law and its position has become clear only now.

“Of course, the petitioner has complied with the registrar’s order but that would not defeat something which is given to him as a matter of right. The August 2020 notification creates a right in those parties who have executed an instrument of conveyance or agreement of sale in respect of any immovable property between the periods mentioned in the 2020 notification.”

What HC said

* August 2020 notification reduced stamp duty on instrument of conveyance

* Duty payable on development agreement is similar to conveyance under Act

* Devp agreements are conveyances within its definition as per Stamp Act

* Pacts would have to be treated at par with instrument of conveyance

* It’s an instrument which is squarely covered by August 2020 notification * Notification creates a right in parties executing agreement of sale.

Follow and Connect with us: Twitter, Facebook, Linkedin, Instagram

17-20% growth expected in Affordable housing finance companies’ loan book in FY23- Study

By
Ruchika Bhalla
-

The total loan book of AHFCs stood at Rs 66,221 crore and constituted about 6 per cent of the overall housing finance companies (HFCs) loan book As on December 31, 2021.

Supported by the government’s higher focus on housing and a favourable tax regime, the affordable housing finance companies ‘ (AHFCs) loan book is likely to expand by 17-20 percent in the current financial year, as per a report. The total loan book of AHFCs stood at Rs 66,221 crore and constituted about 6 percent of the overall housing finance companies (HFCs) loan book as of December 31, 2021.

“We expect the loan books for affordable housing finance companies (AHFC)s to grow by 17-20 percent in FY2023, driven by factors like largely under-penetrated market, favourable demographic profile, government trust on housing, and a favourable regulatory/tax regime that support the growth outlook,” as per rating agency Icra Ratings recent report.

Vice President (Financial Sector Ratings) Manushree Saggar of Icra Ratings said after witnessing a growth in the loan book in Q1 of FY2022, the growth for AHFCs picked up again in Q2 and Q3 FY2022, with their disbursements reaching 85-90 percent of the peak levels seen in the fourth quarter of FY2021.

“As a result, the AHFCs reported a 14 percent (year-on-year) growth as on December 31, 2021. Overall, while the growth has moderated over the long-term average, it continues to remain higher than the overall housing finance industry average,” she added.

Since the second wave of the Covid-19 pandemic put pressure on the asset quality indicators of AHFCs and delinquencies, especially in the softer buckets (0-30, 30-60 and 60-90 days) the past due shot up significantly. However, with improvement in collection efficiency in Q2 and Q3 FY2022, the delinquencies in the softer buckets moderated the report said.

The 30 days past due for some AHFCs declined from 9 percent as on June 30, 2021 to 6.8 percent as on December 31, 2021 while the reported GNPA/Stage 3 percentage marginally increased from 4.2 percent as on June 30, 2021 to 4.3 percent as on December 31, 2021, the report said.

Saggar further said with an expectation of stable net interest margins, higher operating efficiencies with improved scale and moderation in credit costs, the return on assets (RoA) for AHFCs is likely to be between 2.5-2.7 percent in FY2023.

Follow and Connect with us: Twitter, Facebook, Linkedin, Instagram

Twin towers demolition in Noida to be extended up to two months

By
Ruchika Bhalla
-

Ceyane and Apex, the uninhabited towers at Emerald Court were due for tentative demolition on May 22. As per the orders by the Supreme Court both the towers were to be razed last August, after found built in violation of law.

Jet Demolitions, the company has given the job of bringing down the Supertech twin towers in Sector 93A has sought an extension of at least two months to carry out the demolition of the buildings in a letter written to the builder.

Ceyane and Apex, the uninhabited towers at Emerald Court were due for tentative demolition on May 22. As per the orders by the Supreme Court both the towers were to be razed last August after being found built in violation of the law.

An official said Mumbai-based Edifice Engineering and its joint venture partner, South-Africa-based Jet Demolitions, need more than two months to finalize the plan for the demolition as they have found the building to be stronger than expected.

“Edifice has sought more time on technical grounds, saying more preparation is needed. Another concern is that of the safety of neighboring buildings,” an official said. The companies are not keen on going ahead with the demolition until satisfied with preparations, the official added. The experts from Jet Demolitions and Edifice are creating the blast design.

CEO, of the Noida Authority, Ritu Maheshwari has shown unhappiness about this move and said any extension of the timeline will be a breach of the agreement with it. “Edifice has written to Supertech and the builder is responsible to take up the matter. The timeline extension is a violation of the earlier agreement. The authority will not be able to extend the timeline,” she said.

So far, the plan was to collapse the towers with over 4,000kg of explosives, higher than the initial estimate of around 2,500kg. Edifice officials had said after the April 10 test blast that the strength of the buildings was “quite good” and final preparations may take longer.

The final report from the test blast is pending but preparations for the demolition have begun. Shear walls and utilities will be torn down by mid-May. The edifice is also in the final stages of wrapping the primary blast floors with geotextile clothes. All of the building columns of these floors are to be charged with explosives. There are also seven secondary blast floors each in the two towers, where only 40% of columns will be charged with explosives. Here, only those selected pillars will be wrapped with iron mesh and geotextile clothes and not the entire floor, officials had said.

New builders will be re-allocated the stuck up project work- Maharashtra

By
Ruchika Bhalla
-

The 520 stuck projects where the developer had availed the original residents’ consent for redevelopment but did not deliver on the promises and also stopped paying rent given in transit will be allotted to new builders, the state’s housing minister Jitendra Awhad said.

In a move that can potentially give relief to up to 40,000 families, Maharashtra is set to reallocate stuck slum redevelopment projects to new builders, a minister said on Thursday.

The 520 stuck projects where the developer had availed the original residents’ consent for redevelopment but did not deliver on the promises and also stopped paying rent given in transit will be allotted to new builders, the state’s housing minister Jitendra Awhad said.

He said the Slum Rehabilitation Authority (SRA), the government body regulating such projects, has canceled 520 such stalled projects and will be handing over them to new developers after assessing their financial strength and commitment to take it to a logical end as part of the ‘amnesty scheme’.

Awhad said such builders have raised money from financial institutions as well for such projects before disappearing and pegged the quantum of money which is stuck at Rs 35,000 crore.

The NCP leader said he is aware of builders who have not worked on projects for up to 10-15 years, scouting for developers to hand over the project and trying to make a quick buck. At the same time, he said newer slum development for gaining floor space index (FSI), which is adopted by many builders, will also not be tolerated.

Awhad also said that the state is looking at developing a 26-acre land parcel on which a slum stands in South Mumbai’s Colaba, and will be looking to partner with realty developers for the same. Terrorists like Ajmal Kasab, who was part of the 26/11 conspiracy, had landed at the jetty next to the slum, Awhad said.

It was, however, not immediately clear how the state will be able to deliver on the promise, considering that the plot will fall under the coastal regulatory zone norms.

The minister also announced that developers redeveloping Mhada buildings will not have to pay stamp duty upfront, and will now be able to pay the sum in a staggered way till the occupation certificate is issued to a project.

The government is keen to increase the pace of project clearance and is working on digitization and automation to make the entire process free of human intervention in the next six months, Awhad said.

The NCP minister also sought a quicker clearance for a Bill on cessed buildings development which has been stuck with the President of India after being passed unanimously by lawmakers in Maharashtra and wondered who would be responsible if one such structure were to collapse during the monsoon. He also asked corporate entities like Tata to come forward and develop a modern hospital on a 9,000 sq. mt. land parcel held by the state government on which it plans to have a healthcare facility.

MahaRERA authorizes buyer to exit project due to deceitful information in brochure- Pune

By
Ruchika Bhalla
-

MahaRERA member Vijay Satbir Singh on April 22 issued the order for one of the projects in the state and allowed the homebuyer to withdraw from the project with a refund and interest over the false demonstration in brochures by the developer under Section 12 of the Real Estate Regulatory Act (RERA) 2016.

Any false representation in publicity brochures of real estate projects will cost developers dearly as cited in a recent order issued by the Maharashtra Real Estate Regulatory Authority (MahaRERA).

The project booking was done in April 2017 and the brochure stated that the project would be completed in December 2019. While registering with MahaRERA the developer changed the project completion date to December 2021, instead of December 2019, and revised that till June 30, 2022, which was a misrepresentation, stated the order.

The order stated that the Marginal Cost Lending Rate (MCLR) of SBI plus 2% “is the interest prescribed by MahaRERA under the provision of the Act, along with the refund — which in effect would mean that the home buyer, who has paid Rs 55 lakh, would get additional Rs 15 lakh along with the refund”.

MahaRERA member Vijay Satbir Singh said, “This is a landmark judgment. It takes a serious note of the misrepresentation or fancy promises by the developers through their brochures. Under section 12 of the Act, the buyer is entitled to claim a refund of his money and compensation. The order is definitely in the interest of the home buyers,”

The homebuyer had lodged a complaint with the MahaRERA, seeking a refund along with interest in December 2021 under sections 18(1) and 12 of RERA.

The order issued by Singh noted that the complainant had put in the hard-earned money to book the flat and paid a substantial amount to the developer. But even after accepting the amount from the complainants, the developer failed to do its duty.

“The promoter of a MahaRERA-registered project left the complainant in the lurch after taking huge amounts from them and tormented them from 2017, the same year when RERA came into force” stated the order.

In a sequence of events, the developer one-sidedly terminated the booking for the non-payment of outstanding dues, despite failure on his part to complete the project on the agreed date of handing over possession (December 2019) after accepting more than 20% of the amount. This was in violation of the provisions of MOFA, as well as Section 13 of RERA.

MahaRERA disposed of the matter by allowing the homebuyer to withdraw from the project, directing the builder to refund the entire accepted amount, along with interest at the rate prescribed by it (which is the marginal cost of funds based lending rate of the SBI plus 2% interest within a period of two months).

The current MCLR rate is 7% plus 2%, which means that the interest levied is 9% per year for this order. “It would mean the total amount paid by the consumer, which is Rs 55 lakh plus 9% interest per year from the date of payment till the actual realization of the said amount to the complainant. The allottee will get an additional Rs 15 lakh as interest,” a MahaRERA official said.

Up to 10% price hike in NCR by builders, may increase prices further over rising raw material cost

By
Ruchika Bhalla
-

The developers had been absorbing the cost impact until now, but with raw material costs continuing to climb, that won’t be possible as margins have plummeted, leaving no room for further adjustment.

Real estate developers across NCR have upped the house prices by up to 10% and they may be forced to escalate it further soon as global supply chain disruptions have led to a significant increase in raw material prices.

The cement, steel and other building materials prices have gone up by 20% annually as of March 2022.

The developers had been absorbing the cost impact until now, but with raw material costs continuing to climb, that won’t be possible as margins have plummeted, leaving no room for further adjustment.

Ankur Gupta, JMD, Ashiana Housing Ltd. was quoted as saying, “The units we were selling at Rs 3400 sq. ft. are now being sold at Rs 3800 sq. ft. On average, there is an increase of 8-10% across our portfolio, and we might have to take another hike if the raw material prices continue to soar.” The builder also said rising fuel costs and general inflation have also led to cost escalation.

“We are closely watching the situation and prices may go further north if a correction does not happen within the next 6 months,” said Nayan Raheja of Raheja Developers.

Raheja has already raised prices by 10% across the board, in line with mounting input costs.

“The price rise issue has been an ongoing challenge for the past two years, and the current turmoil has skyrocketed the price of key raw materials such as steel and cement. We plan to increase the price by a nominal amount of 5%,” said Santosh Agarwal, CFO and executive director, Alpha Corp.

Third quarter analysis of FY 22 earnings of top listed developers showed they hiked the prices of residential units by up to 10%, driven by market conditions.

The analysis was conducted on developers including Godrej, DLF, Sobha, Oberoi, Lodha, and Mahindra, they have hiked prices Q-o-Q and claimed it has not impacted the sales momentum.

“At Krisumi, we saw an uptick in demand and entered the Rs 400 crore club. The sustained demand momentum has encouraged us to review our pricing strategy, and we plan to increase the prices by 10%,” said Mohit Jain, managing director, Krisumi Corporation.

Over the past year, construction costs have spiralled northward by 12–15% with key building materials, wholesale price inflation (WPI), and labour charges witnessing a double-digit surge.

“Developers cannot stop or sway the under-construction work as they have committed timelines for buyers. The rising costs are impacting the overall project viability; we are left with no choice but to make price adjustments against inflation, “said Vivek Singhal, CEO, of Smartworld Developers. But market experts say the real estate market in Delhi-NCR will continue to be resilient and growth-oriented despite price hikes.

Civic body in Navi Mumbai declares 475 buildings ‘dangerous’ for living

By
Ruchika Bhalla
-

The civic body usually prepares the list of buildings falling under “hazardous living conditions” before the monsoon. The occupants are appealed to vacate before it collapses and causes loss of life and property.

The Navi Mumbai Municipal Corporation (NMMC) has declared 475 buildings as dangerous for occupants and has directed that the structures be audited periodically. There will be a penalty of Rs. 25,000 for failing to carry out structural audits.

The owners or occupants of these “dangerous” marked buildings have also been informed to vacate to avoid any loss of life or property. The penalty if accrued will be collected at the time of collection of annual property tax.

The civic body usually prepares the list of buildings falling under “hazardous living conditions” before the monsoon. The occupants are appealed to vacate before it collapses and causes loss of life and property

Meanwhile, the NMMC has prepared a list of dangerous buildings in the city under section 265 of the Maharashtra Municipal Corporation Act (MMCA) after a ward-wise survey was conducted recently. Notices under section 264 of the MMCA have been sent to all the 475 buildings.

As many as 65 buildings across the city fall under the C-1 category (high risk and uninhabitable) which need to be demolished immediately.

As per section 265 (a) of the MMCA, buildings that have been in use for more than 30 years are required to undergo a structural audit by a construction engineer or structural engineer registered with the NMMC. The date when the occupation certificate was issued to the building will be considered during audit.

The civic body will impose Rs 25,000 penalty for not carrying out structural audit and submitting the report in time. NMMC sources said the onus of carrying out the structural audit lies with owners or occupants.

Meanwhile, the NMMC has made available the list of registered structural engineers on its official website for carrying out the structural audit. The audit report has to be submitted with the town planning department before September 30.

Haryana RERA chief meets RWAs to set conclave agenda after boycott call

By
Ruchika Bhalla
-

A (SEWOCON)-seminar cum workshop cum conference is being organised by H-RERA and DTCP on April 29. To make the upcoming SEWOCON more transparent, Haryana RERA had a deep discussion with the ones representing the RWAs of group housing societies, private plotted colonies and HSVP sectors on this Tuesday.

The Haryana RERA organised and conducted a close group meeting with representatives of about 50 RWAs in the city to discuss the overall agenda of an upcoming RWA conclave. The RWAs had earlier claimed that the outline of the conclave and panellists were decided without any discussions or considerations with the RWAs and had threatened to boycott the event.

A (SEWOCON)-seminar cum workshop cum conference is being organised by H-RERA and DTCP on April 29. To facilitate the SEWOCON, Haryana RERA had a deep discussion with the ones representing the RWAs of group housing societies, private plotted colonies and HSVP sectors on this Tuesday. K K Khandelwal, H-RERA chairman headed the meeting. Badshapur MLA Rakesh Daultabad, deputy commissioner Nishant Yadav, MCG commissioner Mukesh Ahuja and other senior officials of the district administration were also present.

“The aim of this conclave is to create awareness about the rights of RWAs. This meeting was held to address any doubts that RWAs had about the conclave and their feedback and suggestions have been noted down for consideration,” an H-RERA official said.

Several pertinent points were bought up during the meeting by the RWAs. They talked about issues regarding the timeline for completion certificate of projects and handover the same to RWAs or the civic body in case of private plotted colonies. RWAs were asked to submit a list of panellists.

“We have raised multiple issues about project completion and timely handover. It was a fruitful meeting, we hope some changes in the norms will empower the RWAs,” said Chaitali Mandhotra, member of Ardee City RWA.

“H-RERA mainly focuses on issues of high-rises and their disputes with builders. But there are issues such as handover of common amenities to sector residents which need to be addressed,” said Lalit Suraj Bhola, general secretary of Sector 9A RWA.

Praveen Malik, vice-president of United Association of New Gurugram, an RWA umbrella association, said they are happy that the administration is willing to accommodate different views. “We have not only raised our grievances, but also given suggestions to improve the functioning of RWAs,” he said.

1...678...15Page 7 of 15

Latest News

© Copyrights Reserved iPropUnited.com - A DNA Ventures Company