GV Rao, president of Telangana Developers Association, criticizes the conception and administration of Dharani, attributing the halt in real estate development to its discretionary practices. He argues that keeping properties in the prohibition list infringes on the legal and fundamental rights of the people.

HYDERABAD: The Dharani web land portal has left 18 lakh acres without Pattadar passbooks, causing concern among urban planners and experts. The prohibited list on the portal has led to 16 lakh acres in Hyderabad Metropolitan Development Authority districts, including Rangareddy, Medchal Malkajgiri, and Sangareddy, lying idle, raising worries about the underutilization of a significant economic resource.

Despite the state government launching the Dharani land portal three years ago, pattadar passbooks for the mentioned acres have not been issued. This has resulted in genuine landowners facing difficulties in selling or buying their properties, prompting them to seek corrections and removal from the prohibited list.

Last year, after widespread protests by farmers, the revenue department removed about 2.5 lakh acres from the prohibited list, following clearances from district collectors. However, many individuals, like Thadakamalla Sharath and S. Chalama Raju, continue to struggle to rectify errors in revenue records and remove their plots from the list.

The impact of Dharani’s issues extends beyond individual grievances, affecting real estate development in Hyderabad and surrounding areas. Urban planners emphasize the need to address Dharani problems promptly, as certain land pockets remain undeveloped, causing the government to lose out on registration charges, development fees, and other taxes.

GV Rao, president of Telangana Developers Association, criticizes the conception and administration of Dharani, attributing the halt in real estate development to its discretionary practices. He argues that keeping properties in the prohibition list infringes on the legal and fundamental rights of the people.

Facing a backlog of 2.3 lakh applications, many related to prohibited land and properties, citizens urge the Congress government to resolve Dharani-related issues urgently. Advocates highlight various glitches in the portal, such as pattadar passbooks not being issued for disputed land and the lack of provisions for land extent correction and classification correction.

Despite attempts by the previous government to address Dharani glitches, only a small percentage of applications were cleared. B Sunil Kumar, a member of the Dharani committee, points out 46 problems in the portal, including issues with land classification, acquisition-related listings, and outdated owner information. The need for comprehensive solutions to these issues remains a pressing concern for those affected by Dharani’s complications.

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Arora secured relief on a personal bond of Rs 1 lakh and two sureties of an equal amount. However, the court imposed strict conditions, directing the accused not to leave the National Capital Territory of Delhi or the country without prior court permission. Furthermore, Arora has been instructed to surrender his passport.

In a significant development, a Delhi court has granted a 30-day interim bail to R K Arora, the chairman and promoter of Supertech Group, a major player in the real estate sector. The decision, made by Additional Sessions Judge Devender Kumar Jangala, comes in the backdrop of a money laundering case.

Arora secured relief on a personal bond of Rs 1 lakh and two sureties of an equal amount. However, the court imposed strict conditions, directing the accused not to leave the National Capital Territory of Delhi or the country without prior court permission. Furthermore, Arora has been instructed to surrender his passport.

The judge emphasized, “The applicant shall not tamper with evidence nor otherwise indulge in any act or omission that is unlawful or that would prejudice the proceedings in the pending matter.” The interim bail is specifically granted for medical reasons, including necessary treatment, surgery, nursing care, and nutritional support.

To ensure compliance, Arora is required to provide his mobile phone number to the investigating officer, maintain an active and switched-on phone, and share his live location daily in the morning and evening. Additionally, he is prohibited from operating any bank account of the accused companies.

Arora had sought interim bail for three months, citing various health issues. He claimed to have lost approximately 10 kg since his arrest on June 27, 2023, under the Prevention of Money Laundering Act (PMLA).

The money laundering case against Supertech Group, its directors, and promoters originates from multiple FIRs registered by police in Delhi, Haryana, and Uttar Pradesh. The Enforcement Directorate is investigating 26 FIRs, alleging criminal conspiracy, cheating, criminal breach of trust, and forgery.

According to the charge sheet, Supertech and its directors engaged in a “criminal conspiracy” to defraud homebuyers. The company collected funds in advance but failed to provide possession of flats on time, leading to the alleged defrauding of at least 670 homebuyers of Rs 164 crore.

The ED’s probe revealed funds were collected from homebuyers and misappropriated for buying land in the name of other group companies. These lands were then pledged as collateral for borrowing funds from banks, resulting in defaults on payments and rendering approximately Rs 1,500 crore of loans as non-performing assets.

Established in 1988, Supertech Ltd has delivered around 80,000 apartments primarily in the Delhi-NCR region. Currently managing around 25 projects across the National Capital Region, the company is yet to provide possession to over 20,000 buyers.

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Amit Agarwal, founder and MD of 2A Company, a real estate firm, noted, “Developers from all over the country are keen on acquiring land in Ayodhya as it will attract an influx of tourists. Government land is a safer bet for developers, and a planned township will attract huge investment.”

Despite deriving yields from stable fee or rental incomes, REITs in China trade more like stocks than bonds, experiencing significant fluctuations. China’s REIT market, launched in 2020 with initial excitement, has witnessed a significant bubble burst, with the REITs index nearly halving from its early 2022 peak.

SHANGHAI | SINGAPORE: The woes for China’s real estate investment products persist, signaling a bleak outlook in 2024. As hopes for an economic recovery fade, Chinese real estate investment trusts (REITs) have seen successive lows, extending last year’s 28% slump. The CSI REITs Index has already dropped 6.4% this year, driven by a rare seven-day losing streak sparked by a REITs manager’s disclosure of cuts in warehouse rental prices and broader fears of diminishing yields.

The ongoing selloff reflects a loss of confidence in an economy grappling with a deepening property crisis, weakening consumption, and sluggish business activities. This downturn complicates Beijing’s efforts to attract investors into a nascent REIT market designed to funnel much-needed cash to indebted local governments and property developers.

“In an economic downtrend, it’s getting harder and harder for REITs to make money,” remarked Xia Chun, chief economist at Forthright Holdings Co.

Despite deriving yields from stable fee or rental incomes, REITs in China trade more like stocks than bonds, experiencing significant fluctuations. China’s REIT market, launched in 2020 with initial excitement, has witnessed a significant bubble burst, with the REITs index nearly halving from its early 2022 peak.

The latest round of relentless selling has hit logistics property-backed REITs the hardest. The Harvest Jingdong Warehousing and Logistics REIT, for instance, has tumbled approximately 30% this year following a disclosure of leasing fee cuts in central Wuhan. Industrial park-backed REITs, including the Hua An Zhangjiang Industrial Park REIT, have also faced significant declines amid soaring vacancy rates.

The meltdown has prompted various stabilizing measures by REIT managers, including trading suspensions, increased transparency, and investments by the biggest owners of underlying properties. While some investors are wary, others see an opportunity, noting that with most Chinese REITs trading below book value and a cash dividend ratio exceeding 4.5%, they appear more attractive than many of China’s equity or bond assets, according to Liu Xianyu, a researcher at E Fund Management Co.

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The Ministry of Housing and Urban Affairs made a Twitter announcement on Thursday, stating that it is in the process of examining whether both Acts can harmoniously coexist.

MUMBAI: In a legal quandary, the government is currently assessing the feasibility of two distinct Acts governing the regulation of the real estate sector—one enacted by the Central government and the other by the state of West Bengal.

The focal point of the issue revolves around the coexistence of the Real Estate (Regulation & Development) Act, 2016 (RERA), a central government legislation, and the Housing & Industrial Regulation Act, 2017 (HIRA), enacted by the West Bengal government.

The Ministry of Housing and Urban Affairs made a Twitter announcement on Thursday, stating that it is in the process of examining whether both Acts can harmoniously coexist.

While RERA was fully notified in 2017, granting states the authority to formulate their rules and appoint regulatory authorities, the West Bengal government stands as the only state to enact its separate legislation—HIRA.

Earlier, the government had established a sub-committee during the Central Advisory Council meeting, with the objective of persuading the Bengal government to adopt RERA and oversee its implementation in other states. However, the notification of this sub-committee is still pending.

The ministry emphasized the ongoing examination of having central and state Acts on the same subject, stating that, under these circumstances, a sub-committee would serve no purpose. They believe full compliance with transformative legislation like RERA could bring positive changes to the sector, benefiting all stakeholders.

Notably, discrepancies between RERA and HIRA exist in the definition of the force majeure clause and garage. RERA limits the invocation of the force majeure clause to specific circumstances such as war, drought, floods, earthquakes, fires, or other natural calamities affecting regular real estate project development. In contrast, HIRA allows for the declaration of the force majeure clause under additional circumstances prescribed beyond those listed in RERA.

Furthermore, differences emerge in the definition of a garage, with RERA providing a specific description, while HIRA allows for an area as prescribed and a garage as sanctioned by the competent authority.

Concerns have been raised by experts regarding the potential dilution of the Act, emphasizing the importance of states adhering to RERA in both letter and spirit. The outcome of this examination may have significant implications, potentially rendering RERA redundant if other states decide to adopt a similar model. As most states progress in establishing regulators and passing orders, the legal landscape in the real estate sector is undergoing a critical evaluation.

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Credai Ahmedabad has opted to sell properties using the RERA area concept, advocating for charges related to FSI to align with RERA carpet area rather than the built-up area. Additionally, developers committed to upgrading 50 government schools to smart schools.

AHMEDABAD: Inaugurating the annual GIHED property show in Ahmedabad, Chief Minister Bhupendra Patel reassured developers that pending industry issues would be addressed promptly. Emphasizing the developers’ desire for expeditious government processes, Patel stated that there is nothing amiss in seeking efficiency.

Credai Ahmedabad has opted to sell properties using the RERA area concept, advocating for charges related to FSI to align with RERA carpet area rather than the built-up area. Additionally, developers committed to upgrading 50 government schools to smart schools.

Addressing the developers, CM Patel remarked, “India is witnessing rapid growth, and the Prime Minister has committed to development with legacy (vikas sathe virasat). Developers have embraced green building practices, renewables, and are aiming for net-zero. Resolving their issues and ensuring swift government processes is our priority.” He also highlighted the significance of the upcoming Ram temple inauguration as a “historical moment for all.”

Dhruv Patel, President of Credai Ahmedabad, explained, “We have decided to sell properties based on RERA area, covering carpet area, balcony, and wash yard, aligning with complete adherence to RERA rules. However, municipal corporations currently charge for FSI based on the built-up area. We advocate that the AMC should charge based on RERA area exclusively.”

Dhruv Patel further called for increased incentives for green buildings in Gujarat, citing a 5% rebate on FSI charges for green building development. He urged the state to enhance incentive rates for green buildings, aligning with Credai’s commitment to achieving a net-zero carbon footprint in real estate by 2050.

The three-day GIHED property show commenced on Friday, featuring 60 developers showcasing 400 projects across residential, commercial, industrial plotting, and plotting segments.

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MahaRERA issued 1,123 warrants, aiming to recover nearly Rs 764 crore from developers responsible for delays in apartment handovers. The authority also warned of freezing bank accounts and attaching assets to enforce compliance.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has made a significant stride in the recovery of compensation for homebuyers, securing over Rs 140 crore this year from real estate developers who failed to deliver possession of apartments on time. This achievement stands as one of the country’s highest recoveries by any real estate regulator.

In 2023, MahaRERA issued 1,123 warrants, aiming to recover nearly Rs 764 crore from developers responsible for delays in apartment handovers. The authority also warned of freezing bank accounts and attaching assets to enforce compliance. Notably, 110 out of 459 identified projects faced recovery actions, showcasing the effectiveness of MahaRERA’s initiatives.

Ajoy Mehta, Chairman of MahaRERA, emphasized the authority’s commitment to prioritizing troubled homebuyers’ recovery. The measures include issuing warrants to developers, collaborating with district collectors, and implementing decisions to empower and safeguard homebuyers. These decisions, such as standardized agreements and a unique identification number system, contribute to transparency and accountability in the real estate sector.

Mehta stated that MahaRERA’s systematic approach aims to prevent disputes, uphold the Real Estate (Regulation & Development) Act, 2016, and enhance developers’ accountability. The authority’s commitment extends to future development, with plans to establish and enforce certified operating procedures aligned with industry needs.

In response to concerns over defects, MahaRERA has outlined a comprehensive framework for quality construction, ensuring that responsibilities are within prescribed time frames. The authority plans to collaborate with experts to formulate Standard Operating Procedures based on the feedback received during consultations.

MahaRERA’s actions set a precedent for other regulators, showcasing the potential for transparency, accountability, and homebuyer protection in the real estate sector.

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