The government’s intervention comes in response to numerous complaints against investors who, having acquired plots at concessional rates to encourage investment and employment, allegedly engage in leasing or reselling these spaces.

NOIDA: Uttar Pradesh government is tightening regulations to ensure that companies allocated plots for IT, ITES, and institutional purposes construct and operate their own offices on the designated premises, rather than resorting to renting or selling them. The directive, issued by Manoj Kumar Singh, the UP infrastructure and industrial development commissioner, applies to all six industrial development authorities in the state, including prominent areas like Noida and Greater Noida.

The government’s intervention comes in response to numerous complaints against investors who, having acquired plots at concessional rates to encourage investment and employment, allegedly engage in leasing or reselling these spaces.

Singh emphasized the intention behind the directive, stating, “They are meant for entrepreneurs or investors who genuinely intend to establish industries and institutions by investing their funds.” The directive not only addresses the misuse of allocated plots but also aims to foster a conducive environment for authentic investment and enterprise development.

As part of the directive, industrial development authorities are instructed to conduct thorough background checks on applicant-entrepreneurs before making new allotments in categories such as industrial, institutional, IT, and ITES spaces. This proactive measure aims to ensure that only companies capable of self-investment and genuine establishment of enterprises or institutions are granted plot allotments.

Moreover, the directive introduces a stringent requirement: prior permission from the CEO is mandatory if a plot is allotted to a relative of any authority employee. Failure to adhere to this rule will be considered an act of indiscipline.

The Uttar Pradesh government had previously introduced the e-auction process for industrial plot allotments in April 2022 but later reverted to the draw of lots, interviews, and background checks in July of the same year. Vipin Malhan, president of the Noida Entrepreneurs Association, welcomed the new directive, expressing hope that it will deter profit-centric investors. “With the authorities reverting to the draw of lots, interviews, and background checks, genuine companies will receive the land now,” he stated, affirming the positive impact of these measures on fostering authentic business development in the region.

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To facilitate the process, the government has established a fixed fee of Rs500 per plot for rural areas and Rs1,000 for urban areas, ensuring a streamlined and accessible measurement service. The entire process is mandated to conclude within a maximum of 30 working days from the date of online application.

PATNA: To enhance transparency and reduce disputes related to land measurements, the Bihar State Revenue and Land Reforms Department introduced a groundbreaking initiative on Wednesday—the launch of the E-Mapi portal. The portal enables landowners to conveniently apply for land measurement online, eliminating the need to visit block and circle offices for the assessment conducted by the government-appointed amin.

Alok Kumar Mehta, the minister of the department, emphasized that this online platform, accessible at www.emapi.bihar.gov.in, empowers landowners to monitor the status of their applications without the hassle of physical visits to government offices.

Mehta elaborated on the portal’s features, highlighting that landowners must register online with their land details and contact information. The circle officer will then verify the land details, issue notices to neighboring landholders (chauhadidaar), and set a date for their presence during the measurement process. The concerned revenue officer will recommend the measurement, allowing individuals to raise objections before the respective circle officer (CO).

To facilitate the process, the government has established a fixed fee of Rs500 per plot for rural areas and Rs1,000 for urban areas, ensuring a streamlined and accessible measurement service. The entire process is mandated to conclude within a maximum of 30 working days from the date of online application.

In a bid to cater to those residing outside the state on short visits, the government introduced the ‘Tatkal’ facility. Applicants availing this service will be charged Rs1,000 per plot in rural areas and Rs2,000 in urban localities, with a commitment to completing the process within seven working days, as highlighted by the minister.

Mehta emphasized that amins are obligated to measure a plot within two days and submit the report to the CO, who will subsequently make it public on the portal, ensuring transparency throughout the entire process.

The minister clarified that landless individuals who have received land from the state government for housing purposes will not incur any charges for the measurement service. This initiative aims to streamline the land measurement process, promote transparency, and reduce the burden on landowners in Bihar.

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In a significant policy shift, the Uttar Pradesh government has enacted new guidelines regarding the purchase of floor area ratio (FAR), signaling the end of the practice where developers could build first and regularize deviations later. The revised regulations aim to curb illegal construction and streamline the approval process.

GHAZIABAD: Developers in multi-story buildings were previously able to acquire FAR in case of slight deviations from the sanctioned layout map. However, the updated guidelines dictate that any additional FAR deemed illegal will face demolition if applied after construction.

A GDA official explained the change: “Extra FAR allowed builders to increase construction. Previously, developers could apply for additional FAR during the inspection, seeking a completion certificate. However, this process often led to disputes, complaints from residents, and complications in regularizing additional built-up areas.”

Under the new guidelines, additional construction will only be permissible with the prior purchase of FAR at the time of project map submission for approval. The permissible FAR for plotted developments and group housing is 1.5 FSI in the city and 2.5 on the outskirts, with the purchasable FAR allowed on 25% extra construction in the built-up area and 33% in open areas.

The revised guidelines aim to streamline the process of completion certificate issuance, ensuring that construction aligns with the approved project map. The government has also introduced changes in project renewal fees, allowing realtors to pay only for the unfinished part of a project after the stipulated construction period and subsequent extension.

This move will benefit developers working on stalled real estate projects in Noida and Greater Noida. According to the GDA, realtors now face renewal fees only for the unfinished portion of a project, providing a more reasonable and equitable approach to project completion timelines.

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China’s top decision-makers, led by President Xi Jinping, have committed to taking substantial measures to bolster the nation’s struggling real estate market, according to state media reports. The announcement comes as part of a comprehensive plan to navigate the world’s second-largest economy through an uneven rebound.

BEIJING: Facing challenges on various fronts, China’s economy is grappling with a significant debt crisis within its property sector. In a closed-door annual meeting held on Monday and Tuesday, President Xi Jinping and other key leaders vowed to “actively yet safely defuse risks in the real estate sector” and to “meet the reasonable financing needs of real estate enterprises.”

The leaders also emphasized their commitment to “coordinate efforts to defuse risks from small and medium-sized financial institutions in real estate local debt” and to “continue to effectively guard against and defuse risks in key areas,” as reported by state broadcaster CCTV.

Moody’s recently downgraded China’s credit rating outlook to negative, citing “broad downside risks to China’s fiscal, economic, and institutional strength” triggered by the real estate crisis. Despite Beijing’s finance ministry dismissing these concerns as “unnecessary,” the real estate market remains a major source of worry.

Acknowledging the industry’s deep debt crisis, where some of the largest developers face insurmountable debts, the leaders highlighted its pivotal role, accounting for around a quarter of China’s gross domestic product (GDP). Evergrande, one of China’s major real estate developers with over $300 billion in liabilities, has been given until late January to devise a restructuring plan.

The economic meeting also addressed China’s broader economic challenges and outlined priorities for economic work in 2024. President Xi Jinping emphasized that China’s economic recovery is “at a critical stage,” ordering measures to boost demand and mitigate risks. While exports showed a positive trend in November, challenges such as a surprise drop in imports and a decline into deflation signal the complexities China faces in achieving its growth targets.

As China navigates these economic challenges, the commitment to supporting the real estate sector underscores its significance in the nation’s economic recovery and long-term positive outlook. The leaders acknowledged that China still faces difficulties and challenges but expressed confidence in the fundamental trend of economic recovery.

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Yes Bank has set the wheels in motion for the sale of its distressed loan portfolio, putting up assets amounting to over Rs 4,200 crore for prospective buyers. This move comes almost a year after the bank successfully sold a distressed loan book worth Rs 48,000 crore.

In an effort to streamline its financial position, Yes Bank is actively seeking buyers for both its corporate and retail loans, encompassing a diverse range of accounts with an outstanding debt of Rs 4,233 crore. The bank has issued notices to finance companies and asset reconstruction companies (ARC) inviting expressions of interest (EoI).

The corporate loan portfolio, valued at Rs 3,091 crore, includes eight accounts, with notable mentions such as Prometheon Enterprises Ltd, UK (debt: Rs 1,496 crore) and Malvern Travels, UK (debt: Rs 537 crore), both affiliated with the bankrupt travel agency Cox and Kings. Katerra India Pvt Ltd, recently admitted for corporate insolvency, is also part of this portfolio, carrying a debt of Rs 521 crore. Additionally, loans from companies like Indrajit Power (debt: Rs 353 crore) and real estate developers ATS Realworth Pvt Ltd, ATS Infrastructure, ATS Township, and Umritha Infrastructure are up for grabs.

While the earlier sale to JC Flowers ARC involved a combination of cash and security receipts, this time, Yes Bank is specifically seeking offers in cash.

The bank has invited expressions of interest for the corporate loan book but has refrained from setting a reserve price or specifying a bidding date.

In a parallel effort, Yes Bank has also opened expressions of interest for its retail portfolio, amounting to Rs 1,142 crore, with a deadline set for December 18. This includes diverse categories such as personal loans, vehicle loans, credit cards, commercial vehicle loans, construction equipment loans, healthcare, and hospitality equipment loans. Notably, the retail portfolio comprises women microfinance borrowers and business loans.

Yes Bank has communicated to ARCs that this initiative aims to identify an anchor bidder, and a Swiss challenge auction will be held upon finalizing an anchor bidder. The bank’s gross NPA stood at Rs 4,319 crore for September 2023, compared to Rs 27,419 crore a year ago, according to an analyst presentation.

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Powerlong Real Estate’s interest payment, due on October 30, had a grace period of 30 days for the company to fulfill its financial obligation. However, the non-payment now puts the company at risk of default under specific offshore long-term interest-bearing obligations.

BENGALURU: In a recent exchange filing, Powerlong Real Estate sounded an alarm, indicating the potential risk of debt default as the company faces challenges in covering both existing and future liabilities. The warning places Powerlong among the latest Chinese property developers grappling with financial uncertainties.

The company also revealed its failure to make a $15.9 million interest payment on its 5.95% senior notes due in April 2025, as per an exchange filing. These senior notes, listed on the Singapore Exchange, have added to the financial woes of Powerlong Real Estate.

The Chinese property market has been under intense pressure due to a regulatory crackdown since 2020, with authorities taking measures to curb excessive debt, thereby tightening liquidity and elevating default risks for developers.

Powerlong Real Estate’s interest payment, due on October 30, had a grace period of 30 days for the company to fulfill its financial obligation. However, the non-payment now puts the company at risk of default under specific offshore long-term interest-bearing obligations.

In response to these challenges, Powerlong conveyed its commitment to ensuring the timely delivery of ongoing property development projects. This strategic move aims to secure cash resources for sustainable development amidst the prevailing financial uncertainties. The company is navigating a challenging landscape, working diligently to address financial concerns and uphold its commitment to project deliveries.

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DELHI: In a significant move aimed at protecting the rights of migrant workers, the government has announced the mandatory implementation of a unique identifier for all building and construction workers nationwide. Labour Secretary Arti Ahuja disclosed that this identifier, intricately linked to Aadhaar and seamlessly integrated into the e-Shram database, is designed to enhance the portability of benefits.

Speaking at “The Migration Conclave,” organized by the All India Organisation of Employers (AIOE) and FICCI, with support from the International Labour Organization (ILO) in New Delhi, Secretary Ahuja highlighted the importance of ensuring workers’ entitlements remain accessible regardless of their location.

“The upcoming addendum, anticipated to be released within the next week, will provide further details on these transformative reforms,” Ahuja stated. She addressed the challenges posed by the growing use of unregistered outsourced labor through contractors and emphasized that the four labor codes will require contractors to furnish comprehensive benefits, aligning with the Interstate Migrant Workmen Act.

These benefits include minimum wages, occupational safety, and access to basic amenities such as toilets and worksite creches. Secretary Ahuja also outlined the ministry’s plans to implement measures guaranteeing adequate shelter, sanitation, and awareness of entitlements at these locations.

Highlighting the importance of a tripartite mechanism involving workers’ organizations, Ahuja stressed its significance in addressing the specific concerns of migrant workers within industries.

Satoshi Sasaki, Deputy Director of the International Labour Organization (ILO), underscored the significance of labor migration in the current and future labor market. He shed light on the opportunities and challenges faced by migrant workers, exacerbated by the impact of the Covid-19 pandemic on access to decent work.

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