1017 octoct 2019...madhya pradesh approves real estate policy 2019 to streamline permission process...

10-Oct-2019 17-Oct-2019

CREDAI Bengal Daily News Update | 17.10.19

Centre to soon notify RERA in J&K, Ladakh

The notification will be applicable from November 1, after the reorganisation comes into

force.

The Central government is set to notify implementation of the Real Estate (Regulation and

Development) Act in the newly constituted Union territories of Jammu & Kashmir and Ladakh,

paving the way for property development in the two regions.

“In Jammu & Kashmir, the act will be notified by the state government, while in Ladakh,

the Centre will notify it since it is a UT without a legislative assembly,” an official of ministry

of housing and urban affairs said. The notification will be applicable from November 1, after

the reorganisation comes into force.

The Act makes it mandatory for each state and UT to set up its own real estate regulator and

frame rules to govern the functioning of the regulator. It is aimed at encouraging greater

transparency, citizen centricity, accountability and financial discipline in the sector.

The provisions for the UTs would be the same as those applicable nationally, said Durga

Shanker Mishra, secretary in the ministry. J&K had come up with a real estate regulation act,

but it was repealed by the Jammu & Kashmir Reorganisation Act.

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Newspaper/Online ET Realty(online)

Date October 16, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/centre-to-soon-notify-rera-in-jk-ladakh/71615014

Telangana government announces layout regularisation scheme

The municipal administration and urban development (MA&UD) department order (GO

No 251) said the scheme will begin on October 15, 2019 and applications for regularization

will be accepted for next three months.

Open plots in unauthorized and illegal layouts in new municipalities will be regularized

under Layout Regularization Scheme (LRS). The Telangana government has announced the

scheme, to be implemented in 73 new municipalities and the scheme is applicable to the plots

which were registered before March 30, 2018.

The municipal administration and urban development (MA&UD) department order (GO No

251) said the scheme will begin on October 15, 2019 and applications for regularization will be

accepted for next three months.

In case of municipalities and municipal corporations in HMDA limits, the HMDA will

regularize the plots and in case of other municipalities and corporations in other areas, the

Director of Town and Country Planning (DTCP) will regularize but the applications have to be

submitted to the respective civic bodies.At the time of submission of applications, the applicants

have to pay 10 per cent of the total amount or Rs 10,000 whichever is less as an initial payment.

However, the open plots, which are located in lake, water bodies, nala and full tank level of any

lake, pond, chervu or kunta and shikam land, lands earmarked for industrial use, open space,

recreational in the master plans will not be considered for regularization.

Officials said if developers of illegal layouts do not come forward for regularization, no

building permission, no regular water supply connection and services like drainage and

sewerage would be extended and the layouts would be recorded in the prohibitory register of the

registrations and stamps department and no sale or disposal transactions are allowed.

To utilize the LRS amount for development of the municipality, the penal amount would be

deposited in a separate escrow account and utilized only for improvement of amenities in the

area.

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Link https://realty.economictimes.indiatimes.com/news/industry/telangana-government-announces-layout-regularisation-scheme/71606975

Madhya Pradesh approves Real Estate Policy 2019 to streamline

permission process

‘Real Estate Policy 2019’ will streamline the permission process for builders to cut red-

tapism, said officials.

Two days before „Magnificent MP‟ investors‟ summit, the Kamal Nath cabinet on Tuesday

approved a new real estate policy that promises to ease business for builders, cut red tape and

make realty attractive to investors. And it will no longer be mandatory to build homes for

economically weaker sections.

“It is for the first time in the state that the entire proceedings of property dealings have been

simplified through a real estate policy,” minister for urban administration Jaivardhan Singh

said. The target is to attract more investment in the sector.

„Real Estate Policy 2019‟ will streamline the permission process for builders to cut red-tapism,

said officials.

“Till now, a builder needed to submit 27 documents while seeking government permission. In

the new policy, we have reduced it to just five,” Singh told mediapersons after the cabinet

meeting.

The only documents needed now are the application, plot purchase details, copy of registration,

building plan and affidavit. It is no longer mandatory to build EWS (economically-weaker

section) homes in a project.

All e-vehicles to get 100% exemption from MV tax

It is no longer mandatory to build EWS (economically-weaker section) homes in a project.

Construction of EWS is optional as builders may deposit a fixed amount with the government,

which will get added to Mukhya Mantri Awas Yojana to construct homes for the poor.

“To encourage investment, we are providing an option to builders to either construct EWS

homes or deposit a fee with Mukhya Mantri Awas Yojana,” the minister said. Asked if this

decision will affect construction of homes for poor, he said, “The state government is building 6

lakh new EWS homes in the next four years.”

“Permission was different for urban and rural colonizers so far. That is being done away with. It

will be common now. Builders will be given a licence for five years with which they can

construct properties in urban and rural areas,” the minister explained. Under „one-state-one

registration‟, a builder can start projects anywhere in the state within these five years.



Link https://realty.economictimes.indiatimes.com/news/industry/madhya-pradesh-approves-real-estate-policy-2019-to-streamline-permission-process/71615171

For citizens building smaller houses, permission will be given instantly. “If NOC (no-objection

certificate) is not issued within 30 days, then it will be accepted that the certificate has been

issued. Government has also ended the previous provision of a minimum requirement of 2-

hectare plot for colonizing and development by builders. This will decrease the problem of

illegal colonies,” Singh argued.

In another major decision, the council of ministers approved the Electric Vehicle Policy to

encourage non-petroleum automobiles to decrease pollution in major urban areas. “The state

government will purchase 2,200 buses in the next five years, which will ply inter-city and intra-

city,” Singh said. “Public transportation system will be transformed radically with e-vehicles.

State government will provide Rs 150 crore as subsidy for purchase of e-rickshaws and eautos,”

he added.

E-vehicles will be given 100% exemption from motor vehicle tax and registration tax during

purchase, a state release said. There is also the provision of exemption from parking fee in

places run by urban bodies for the first five years.

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Thiruvananthapuram civic body to review over 60 applications for

construction in CRZ-2

Applications which were granted clearance by DCZMC, the secretary has been asked to

ensure whether the construction is outside no-development zone (NDZ).

The city corporation has been tasked with the labourious process to clear over 60 applications

for construction of dwellings in Coastal Regulation Zone-2 (CRZ-2) after the district-level

coastal zone management committee (DCZMC) has deferred majority of applications for the

scrutiny by corporation secretary.

A recent DCZMC meeting considered 85 applications under corporation limits of which only 24

applications were granted permission, one was rejected and rest were deferred citing that

secretary has to report whether authorized buildings or roads (as on 1996) exist on seaward side

of the construction.

The regional town planner will also have to take a decision accordingly. Even in applications

which were granted clearance by DCZMC, the secretary has been asked to ensure whether the

construction is outside no-development zone (NDZ).

As for Varkala municipality, 12 applications were granted permission out of 18 applications

received. The 103rd meeting of Kerala coastal zone management authority (KCZMA) had

directed that the district-level committee shall continue to function as per CRZ notification

2011.

KCZMA has earlier issued proceedings by which district-level committees are permitted to

issue clearance for residential buildings having plinth area up to 250sq.m. District-level

committees can permit residential buildings if they fall on the landward side of existing road or

on the landward side of the existing authorized structures in CRZ-2. The applications are

considered based on coastal zone management plan (CZMP) prepared in accordance with CRZ

notification 2011.

At present, the district-level committee cannot execute provisions as per CRZ notification 2019

since CZMP made as per the notification of 2019 has to be cleared by ministry of environment

and climate change (MoEF&CC).

It was in February 2019 that MoEF&CC approved CZMP of Thiruvananthapuram along with

nine other districts based on recommendations of the national coastal zone management

authority and technical scrutiny committee held at National Centre for Sustainable Coastal

Management. The district-level committee has district collector as chairman and regional town



Link https://realty.economictimes.indiatimes.com/news/industry/thiruvananthapuram-civic-body-to-review-over-60-applications-for-construction-in-crz-2/71613479

planner as member secretary. Panchayat deputy director and two other members are part of the

committee.

Officials said that DCZMC is being circumspect in the wake of events in Maradu. “The last

meeting of KCZMA had also directed district-level committees to present clearance issued by

DCZMC in front of KCZMA. This might also have led to DCZMC deferring decisions,” said an

official.

The corporation will now have to ascertain whether authorized structures as mandated by CRZ

notification 2011 existed as in 1996. “Scrutiny of maps, tax receipts and other ownership

records are various ways by which this has to be done. The corporation will have to process

each application carefully and even for those applications which were granted, cross-checking

will have to be done which places added responsibility on the civic body,” officials said.

While submitting its recommendations for draft CZMP, corporation had suggested that it would

be essential to include corporation engineer and secretary in the district-level committee for

CRZ rules headed by district collector.

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Can’t force builders in Gurugram for permanent lines: DHBVN

Aggarwal also pointed out that the developers of these societies had taken temporary

electricity connections from 11kv feeders, which is a commercial connection given by the

DHBVN for carrying out construction work.

The power discom in Gurgaon seems to be at its wit‟s end in dealing with housing societies in

new sectors that currently have a temporary electricity connection or are dependent on backups,

such as diesel generators.

While the Dakshin Haryana Bijli Vitran Nigam (DHBVN) has already issued a notice to 25

developers of 100 such housing societies in sectors 58 to 74, threatening to disconnect the

temporary connection, officials said, the discom neither has the power to do so nor can it force

them to take a permanent connection.

“We cannot force a housing society to take a connection. Also, we do not have powers to issue

penalty for using the temporary connection. We will continue to send notices to builders to

apply for residential connection,” KC Aggarwal, superintending engineer of DHBVN Circle -2,

told TOI.

Aggarwal also pointed out that the developers of these societies had taken temporary electricity

connections from 11kv feeders, which is a commercial connection given by the DHBVN for

carrying out construction work.

“But these builders are supposed to apply for power connection from 33kv feeders once the

construction is complete. As the 11kv feeder is not designed to sustain the load of an entire unit,

the connection tends to trip several times a day and thereby the housing societies are forced to

use diesel generators,” he said.

At present, the city has three substations located in sectors 57, 72 and 65, which are completely

efficient to handle the current power demand of the city. Gurgaon requires 2 crore electricity

unit every day and the discom can supply 3.5 crore electricity unit.

And according to DHBVN, there are about 170 housing societies in sectors 58 to 115, of which,

officials estimate, some 100 are currently dependent on temporary connection or power

backups. “We have surplus electricity but we are waiting for the builders to apply for permanent

connection,” said Anil Goyal, superintending engineer, Circle-1.

Meanwhile, TOI has learnt that though some of the housing societies have already applied for a

permanent connection, the land required to build a substation within these projects is yet to be

handed over to DHVBN. “Societies like Ramprastha City have requested for a permanent

connection. However, they are yet to give us land,” said Goyal.



Link https://realty.economictimes.indiatimes.com/news/residential/cant-force-builders-in-gurugram-for-permanent-lines-dhbvn/71607021

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PNB Housing reduces exposure in commercial paper by 30% in Q2

FY20

PNB Housing Finance raised $175 million through ECB route and Rs 500 crore via non-

convertible debentures (NCD) in the Jul-Sep 2019 quarter.

PNB Housing Finance on Wednesday informed the BSE that it has an exposure in commercial

paper of Rs 4,506 crore as on September 30, 2019. This is a 30 per cent reduction from Rs

6,475 crore exposure it had in June 2019.

Its gross NPA stood at 0.73% of the AUM during the said quarter.

PNB Housing Finance raised $175 million through ECB route and Rs 500 crore via non-

convertible debentures (NCD) in the Jul-Sep 2019 quarter.

The company further said that it has disbursed loans amounting to Rs 4,970 crore in the second

quarter of financual year 2019-20. Retail disbursements during the said quarter were Rs 4,718

crore while the corporate disbursements were Rs 252 crore.

The asset under management (AUM) of PNB Housing was Rs 89,471 crore and loan asset was

Rs 74,353 crore in the said quarter.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/pnb-housing-reduces-exposure-in-commercial-paper-by-30-in-q2-fy20/71618054

SBI seeks Finance ministry's intervention for DHFL resolution

Lack of coordination is causing hurdles, SBI feels. The bank is worried about systemic

risk if efforts to finalise the resolution plan do not go through. While NBFCs have taken a

hit on their advances, banks have yet to mark such credit as NPAs.

State Bank of India has approached the Department of Financial Services, seeking its

intervention to end the impasse over a resolution plan for home financier Dewan Housing

Finance Corporation Ltd., three people with direct knowledge of the matter told ET.

“There is lack of coordination among regulators, which is causing an obstacle for the resolution

plan going through,” said one person. “SBI chairman has written a letter to the DFS

highlighting relevant points on the matter for speedy process.”

India‟s largest bank is said to have become apprehensive over a systemic risk if ongoing efforts

to finalise the resolution plan for the indebted home financier do not go through. While non-

banking lenders have taken a hit on their advances to DHFL, banks have yet to mark such credit

as non-performing assets. NPAs require additional provisions, denting lenders‟ profit margins.

SBI and DFS did not reply to ET‟s email queries. DFS is a division of the finance ministry that

covers the functioning of banks, financial institutions, insurance companies and the National

Pension System.

The finance ministry is expected to reach out to regulators including the Securities and

Exchange Board of India on the issue. Lenders want mutual funds to sign the inter-creditor

agreement, which is key for the proposed resolution plan.

The SBI chief had approached Sebi, seeking a one-time exception for mutual funds from a rule

on segregation of assets so that they could be part of the resolution plan being worked out for

DHFL, ET reported on September 24.

Asset management companies are mostly unable to sign the inter-creditor agreement for DHFL,

citing a regulatory rider known as sidepocketing or segregation of stressed assets. Only Tata

Mutual Fund, which has already complied with relevant regulations, agreed to be part of the

ICA.

Mutual funds collectively own almost 10% of the total debt, or close to Rs 5,000 crore. UTI,

Reliance, Nippon, Axis, Tata, Kotak, DSP and Pramerica are some of the mutual funds that

invested in DHFL debt securities.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-seeks-finance-ministrys-intervention-for-dhfl-resolution/71611698

Bankers said agreement by non-banking creditors to the resolution plan is important for any

progress since it insulates them against litigation in the future.

Meanwhile, Catalyst Trusteeship, the custodian of DHFL bonds, threatened to file a case

against the embattled home financier, acting on behalf of bondholders.

At the same time, (Reliance) Nippon MF and Edelweiss filed a case in the Bombay high court,

objecting to the discretionary repayment of debt to secured and unsecured creditors.

The lenders may convert a portion of DHFL‟s debt into 51% equity while non-banking entities

such as mutual funds face losses of 40% or more as part of the resolution plan. The mutual

funds will only get part of the liquidation value because they are not part of the creditors‟

consortium, as per the plan. The remaining loans may be hived off and an equity investor could

take a stake in the company.

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CRISIL changes rating outlook of Indiabulls Housing to 'Negative'

The rating company marked such negative outlook for long term ratings and various debt

securities worth Rs 27,049.98 crore for two companies collectively.

CRISIL, the local arm of S&P Global, changed ratings outlook of Indiabulls Housing

Finance (IBHF) and its wholly owned subsidiary - Indiabulls Commercial Credit (ICCL) to

"Negative" from "Watch Developing" citing fund raising challenges.

The rating company marked such negative outlook for long term ratings and various debt

securities worth Rs 27,049.98 crore for two companies collectively.

“The long-term ratings have been assigned 'Negative' outlook on account of possibilities of

funding access challenges continuing due to the non-fructification of the proposed merger with

LVB,” CRISIL said in a late evening release Tuesday.

It also raised concern over the public interest litigation, recently filed against the company

(IBHF) that can dent investor confidence.

“The outlook also reflects the potential impact on the financial flexibility of the company due to

the recent sharp fall in its equity price,” the rating company said.

A few days ago, Moody's Investors Service downgraded IBHF‟s foreign-currency rating to B2

from Ba2.

Earlier this year on September 10, CRISIL had revised its rating on the long-term debt

instruments of IBHFL to 'AA+' from 'CRISIL AAA'.

The ratings continued on watch given the proposed merger of IBHFL along with ICCL into and

with the Lakshmi Vilas Bank (LVB), Crisil said. The transaction was awaiting regulatory

approvals.

The watch resolution followed the announcement by IBHFL on October 09, 2019 that the

Reserve Bank of India (RBI) has not approved the voluntary amalgamation of IBHFL and ICCL

with LVB.

With the proposed merger no longer on the cards, the company has started tapping the banking

channels once again and plans to increase the quantum of fund raising significantly going

forward.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/crisil-changes-rating-outlook-of-indiabulls-housing-to-negative/71624045

CRISIL will continue to monitor the fund raising by IBHFL, in terms of the quantum, the cost,

as well as the diversity of sources, it said.

At the same time, CRISIL will also closely monitor the progress on proceedings pertaining to

the public interest litigation (PIL) recently filed against the company. The company, on its part,

has refuted the allegations against it in the PIL.

But, the company seems to show signs of improvement in first fortnight of October with IBHFL

having received credit sanctions to raise Rs 5,200.

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MahaRERA to co-opt developer bodies to enhance compliant

practices

The housing regulator has issued a new circular to make a group, association or

federation of promoters a Self Regulatory Organisation registered with the Authority.

The Maharashtra Real Estate Regulatory Authority has decided to co-opt developer bodies

like National Real Estate Development Council, Confederation of Real

Estate Developers Association of India (CREDAI), Maharashtra Chamber of Housing Industry

(MCHI) and register them as Self Regulatory Organisations to promote greater compliance

culture and curb fraudulent behaviour.

The housing regulator has issued a new circular to make a group, association or federation of

promoters a Self Regulatory Organisation registered with the Authority. The minimum

eligibility for a body to be registered as a SRO is that it should have at least

500 MahaRERA registered projects of their members.

"The SRO shall encourage its members to comply with the provisions of the Act, applicable

regules, regulations, orders or circulars issued by MahaRERA from time to time," states the

circular. It says that the SRO shall be responsible for creating awareness about RERA

compliances, enforcement of code of conduct and greater professionalism.

MahaRERA chairperson Gautam Chatterjee said "It is a unique concept. We have SROs in the

form of CREDAI, NAREDCO or National Association of Realtors for real estate agents for

example. MahaRERA has worked with these bodies from the first day to ensure that promoters

comply with the provisions of the new act. But, after detailed discussions, we decided that we

should register them as SROs to further enhance transparency, and professionalism."

Chatterjee said MahaRERA presently has the highest 22,000 ongoing real estate projects

registered with it, and SROs are expected to hand-hold their members to comply with the

regulations “Earlier, we said if you have a Commencement Certificate, then you can register

your project with us. Similarly, we will soon make it mandatory for any promoter wanting to

register his or her project in Maharashtra to be a member of any of these SROs,” said

Chatterjee, adding “This concept will go a long way in creating professionalism and compliant

culture in real estate sector.”

Reacting to the development, consumer protection activist and Mumbai Grahak Panchayat

chairman Shirish Deshpande said "It appears that the Housing Regulator is now going one step



Link https://realty.economictimes.indiatimes.com/news/regulatory/maharera-to-co-opt-developer-bodies-to-enhance-compliant-practices/71624007

forward in regulating the promoters who are indulging in unfair practices in the real estate

sector."

"It is a soft and unique step where a statutory regulator, instead of using his mandate under the

law, is trying to encourage the self-regulation in the real estate sector. If it succeeds, definitely it

is Advantage Consumers. If it fails, then Regulator should not hesitate to act as per mandate of

the law to protect the interest of the consumers."

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1017 octoct 2019...madhya pradesh approves real estate policy 2019 to streamline permission process...

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