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Gurugram homebuyers to move consumer court against Haryana RERA

Gurugram homebuyers to move consumer court against Haryana RERA

August 5, 2017 in Uncategorized

GURUGRAM: A group of homebuyers, unhappy with the provisions of Haryana’s Real Estate Regulation Act (Rera), are planning to knock on the doors of the National Consumer Disputes Redressal Commission (NCDRC) to protect their interests. The buyers, who have invested in various ongoing real estate projects across Gurgaon, have already lodged several complaints with the Haryana government, expressing serious concerns over the “dilution” of the central Act. They alleged that the state Act, though was touted as a tool for safeguarding the interests of homebuyers, ended up being largely tilted in favour of developers. Citing an example, Prakhar Sahay, a homebuyer, said a Mumbai-based developer had been delaying the process for giving possession at a project at Sector 95 for the past seven years. After the Rera rollout, it has now applied for an occupation certificate. “So basically, the developer is going scot-free despite harassing the homebuyers for all these years. Because the state government has tweaked the definition of an on-going project by keeping those, which have applied for an occupation certificate, outside the purview of H-Rera,” Sahay explained. Gaurav Prakash, a new Gurgaon resident who has invested in another project, said the NCDRC (consumer court) was the only hope for buyers. “The commission does not differentiate on the basis of an occupation certificate or a completion certificate,” Prakash added. Som Bakshi, who has bought a property from M3M developer, said they too were planning to file a complaint with NCDRC. “Developers are expected to pay penalty for delay in projects registered under the Rera. However, buyers, who have invested in the projects that remain outside the purview of the Act, will still have to run from pillar to post,” he explained. Nikhil Sarup, co-founder of Lawrato, a Delhi-based legal startup, said the dilution of the central Act would see a rise in the number of cases lodged with NCDRC. “Rera was expected to make grievance redressal more convenient for buyers. That was the reason why people were eagerly waiting for its roll-out. But, with so many investors, especially in NCR, complaining about the Act, pressure on the commission is bound to increase in coming days,” said Sarup. Also, sources said already 13,708 cases were pending at the national commission.  (source by:-The Economic Times)

Haryana builders seek 3 more months for registration under RERA

Haryana builders seek 3 more months for registration under RERA

August 3, 2017 in Uncategorized

GURUGRAM: Several Haryana-based developers have approached the government, seeking an extension in the deadline for registration of projects under H-Rera. A majority of projects are yet to be registered, though the deadline for registration of on-going projects ended on July 31. Between July 28, when the final rule was notified, and July 31, the last date for registration, over 400 applications for registration were submitted with the ad-hoc authority that has been put in place while the state regulator is formed. According to sources, only around 30 state projects have received registration certificates so far. As per norms, developers cannot advertise projects before they get registered under the Act. Last month, the state government had issued notices to 20 developers for advertising their projects without registering them. Praveen Jain, president of National Real Estate Development Council (NAREDCO), the apex body of the real estate sector, said rules were supposed to be notified by May 1, but got delayed by three months. With the final rule being notified only on July 28, it left only three days for registration. “The government should extend the deadline by three months, as notification of rules was delayed by the same period,” said Jain. He added, “The UP government has extended the deadline for registration by 15 days, along with a plan to impose minimum penalty for the first three months after that,” suggesting the Haryana government should also announce a similar plan. He further said realtors have also sought time from the government to explain their views on outstanding issues. “Though implementation of H-Rera will give a boost to the real estate sector, there are many grey areas on which both developers and customers need clarity. Deadline extension will be a positive step towards its successful implementation,” said Vineet Relia, managing director, SARE Homes. Sumit Berry, managing director, BDI Group, emphasised the confusion that prevailed in the initial days. “There were many challenges being faced by all stakeholders initially, due to the lack of clarity on the Act. There was confusion over the state and central Rera Acts, which took time to get cleared. Even the website either had faults or was down for most of the initial 30 days,” said Berry, adding a deadline extension would give realtors time to comply with all rules and regulations, and register projects successfully. Till now, the Haryana government has not been able to upload a fully functional H-Rera website, forcing realtors to submit applications manually. A senior official at the department of town and country planning (DTCP) said they have received many applications from realtors and agents for registration. “We received applications till July 31. Till now, there’s no decision to extend the deadline,” said the official. (source by:-The Economic Times)

Office rentals to remain strong across Bengaluru, Mumbai & NCR: Report

Office rentals to remain strong across Bengaluru, Mumbai & NCR: Report

August 2, 2017 in Uncategorized

In the backdrop of strong demand from office space occupiers, commercialrentals in National Capital Region, Mumbai and Bengaluru will continue to outperform, said RICS’ India Commercial Property Monitor based on a survey. Of these cities, Bengaluru is expected to do better than the other two cities. Office rental forecasts over the next twelve months have been lowered slightly to 3.3% in the second quarter of 2017 from 3.5% in the first quarter of the year. This is due to a moderation in rent expectations for prime office space, though office rental forecasts are still seen up 6.3% over the next year. “Strong economic growth is generating demand for office space. The last two years 2015 and 2016 have been quite good for the segment with pan India office vacancy at its lowest over 5 years. Vacancy levels in some cities such as Bengaluru, Chennai, Hyderabad and Pune is around 5-10%,” said Sachin Sandhir, Global Managing Director-Emerging Business, RICS South Asia. “On the supply side, there is a shortage of grade A office space. It is less than half of the current office stock across top eight cities at 280 million sq ft. The gap between demand and supply of good quality office space Is keeping office rentals strong.” Retail properties in NCR are, however, expected to see significantly less rental value appreciation over the next year than their counterparts in Bengaluru and Mumbai. According to RICS, respondents are modestly bullish on capital values over the next three months. However, this is mainly driven by the office segment as the outlook for the industrial and retail segments are flat over the next quarter. Respondents, however, do expect capital values to increase across all market segments over the next year. When viewed at the city level, respondents revised capital value forecasts over the next year lower, particularly in Bangalore. Headline capital values are now seen increasing 3.9% over the next year after contributors forecast a 6.1% appreciation last quarter. However, this market is still seen outperforming Mumbai and the NCR where headline capital values are seen up 3.8% and 2.9% over the next twelve months, respectively, the report added. (source by:-The Economic Times)

Vivo leases 31,000 sq ft in Gurgaon for India HQ

Vivo leases 31,000 sq ft in Gurgaon for India HQ

August 1, 2017 in Uncategorized

Chinese mobile handset maker Vivo has picked up two floors spread over 31,000 sq ft office space in Emaar India’s office-cum-retail complex Palm Springs Plaza in Gurgaon on lease. Vivo is setting up its corporate headquarters for India operations at this newly leased space, said two persons familiar with the development. The deal assumes significance in the backdrop of current frosty relationship between India and China. As part of its total space take-up, the handset maker is expected to start operations from the premises from the next few months. “The total tenure of the deal is nine years with rental reset at every three years. Lease rentals for the deal are fixed at around Rs 95 per sq ft a month,” said one of the persons mentioned above. Email queries to both Vivo India and Emaar India remained unanswered until the time of going to press. The Chinese company has been aggressively pushing its marketing efforts in India through various sponsorships and tie-ups. Recently, Vivo bagged the title sponsorship of the Indian Premier League (IPL) for Rs 2,199 for five more years. In May, the mobile company also acquired the title sponsorship rights for the Pro-Kabaddi League for five years for Rs 300 crore. Vivo, the global smartphone manufacturer, entered India in late 2014, and is currently present in more than 400 cities in 22 states across the country. The office-cum-retail complex Palm Springs Plaza, where Vivo has picked up office space, is located on the Golf Course Road in Sector 54, Gurgaon. The 15-storey structure has 300,000 sq ft of built-up area, with 51,000 sq ft for retail activities spread over two floors, while rest are commercial offices. The complex counts organizations such as Airtel, IndusInd Bank, Bikers Café and Zizo as its occupants. In Gurgaon, Golf Course Road and Cybercity have been attracting significant corporate interest in the backdrop of enhanced metro connectivity along the Golf Course Road and Golf Course Extension Road. During the quarter ended June, Gurgaon recorded gross leasing volume of nearly 0.9 million sq ft, marginally up from the last quarter numbers, driven by a few mid-sized space requirements of less than 100,000 sq ft, showed a recent report by property consultant Colliers International. Demand for office spaces here is likely to improve with several occupiers looking for new space primarily in the technology and financial sectors. About 0.5 million sq ft of new supply is likely to see completion in the second half of 2017, while by 2020 the market is likely to see addition of about 11 million sq ft. Overall, vacancy in this micro-market is set to remain high at around 30% due to continuous addition of new supply in emerging corridors, said the report. (source by:-The Economic Times)

Avanta India to open four business centers by 2018

Avanta India to open four business centers by 2018

July 29, 2017 in Uncategorized

NEW DELHI: Avanta India, a business centre provider, is planning to open four business centers in Bengaluru, Mumbai and National Capital Region by 2018. The company is in talks with major developers such as DLF and Piramal Realty to open these centers. In Mumbai, the company is looking to start its operations in the Bandra-Kurla complex (BKC) and Lower Parel. “We have allocated an investment of Rs 100 million to meet the initial infrastructural requirements in Mumbai. We are looking for a 20,000-30,000 sq ft of space for the business centers,” says Nakul Mathur, managing director of the company. The company plans to be present in the medium to high-end segment and will be looking for larger spaces. Avanta is also in talks with two Fortune 500 companies to design and manage complete spaces for them, says Mathur. Almost 90% of the current clients of the companies are corporate while rest 10% includes SMEs, funded and startups. The company plans to change this ratio to 80: 20 in coming years. (source by:-The Economic Times)

RERA: Why change from CC to OC is bothering Gurugram, Noida buyers

RERA: Why change from CC to OC is bothering Gurugram, Noida buyers

July 28, 2017 in Uncategorized

GURUGRAM: Occupancy and completion certificates, two words that have forever been part of the real estate lexicon, have suddenly become keywords in deciding who Rerabenefits most.All housing projects completed and delivered in Gurgaon have occupancy certificates, or OCs, but none has a completion certificate, a CC. There is a big difference between the two, particularly for those who have booked flats in condominiums. The central Rera — or Real Estate (Regulation and Development) Act — was notified on May 1 and stipulated that housing projects that have received a CC before that would not be under the law’s purview. But both Haryana and Uttar Pradesh have changed it to OC. Buyers are calling this a big dilution of the law but, given the situation in Gurgaon where no housing project has received a CC, government officials said there was no other way forward. Conditions for getting an OC are far less stringent than those for receiving a CC. In case of a condominium, a single tower out of, say, 10 can get an OC even if work on the others in on. Unavailability of a government power connection or sewage treatment facilities also do not come in the way of an OC. The basis for granting an OC is the building plan. However, a CC is only granted after all licence commitments are fulfilled by a developer and after completion of all amenities and formation of an RWA. Only one CC is issued for a project. But several OCs can be issued, which are also described as part-completion. “To get an OC, a particular tower or block needs to be constructed according to the building plan, should have a lift, electricity (not necessarily from DHBVN) and a no-objection certificate from the fire department,” said Rajeev Jha, who is associated with a real estate company. CCs are also not sought because one of the conditions is that all dues must be cleared. “Maintenance has also emerged as a source of revenue for many developers, so they are not interested in handing it over to the RWA, which is mandatory for getting CC. Once a project gets CC, a developer has no role in it,” said Jha. The department of town and country planning has issued 1,042 licences in Gurgaon since 1981, of which 652 were between 2008 and 2014. In addition, 41 licences have been issued for affordable housing. There are an estimated 1.7 lakh units in Gurgaon (flats/houses) that can be classified as ‘ongoing’ but 90% of them will not come under Rera’s purview  (source by:-The Economic Times)

Most ongoing projects in NCR will be out of RERA

Most ongoing projects in NCR will be out of RERA

July 28, 2017 in Uncategorized

GURUGRAM/NOIDA: Haryana and Uttar Pradesh’s Rera rules leave a majority of ongoing real estate projects in NCR outside the ambit of the new real estate law, with the number as high as 90% in Gurgaon, according to government and industry officials. The figures from Noida, the city worst hit by delays in delivery of flats, were not immediately available but industry watchers expect little difference with Gurgaon because Uttar Pradesh and Haryana have used the same yardstick for ongoing projects to be included in their Real Estate (Regulation and Development) Act. Noida and Greater Noida together currently have 82 ongoing builder projects. Both states have decided to keep outside the purview of Rera projects that have been issued, or applied for, occupancy certificates. This is a significant difference from the central Rera notified on May 1 this year that had completion certificates as the benchmark for exemption. In Gurgaon, for instance, 90% of the estimated 1.7 lakh units (flats/houses) that are in various stages of construction or completion have either already received occupancy certificates or applied for it, or have received part-completion (also an occupancy paper). These will not be part of the Haryana Rera. Part completion does not mean the entire project is excluded from Rera. A tower still under construction will have to be registered afresh even if other towers in the project are complete. Homebuyers in both cities said they were unhappy at what they called a dilution of the Act because the main problem here is delayed possession. An occupancy certificate does not address that as ongoing projects where construction is complete but amenities aren’t can get occupancy papers. Buyers in these projects, therefore, cannot bank on Rera for solutions. Similarly, if a housing project has 20 towers of which three have occupancy papers, those three towers will also not come under Rera, though amenities will be built collectively for the entire project. Industry and government sources in Gurgaon said new projects where work has recently started, mostly those launched in the last year, and old projects abandoned midway because of a developer facing financial crunch, will come under the Haryana Rera. A homebuyers’ group in Noida met MLA Pankaj Singh to express their disappointment and seek a review of the rules before the Act is finally notified. The Centre has asked all states to notify the Act by July 31. Haryana’s cabinet cleared the rules on July 25. “A large number of applications for occupancy has been made over the past month with the Noida and Greater Noida authorities. This means a large number of ongoing apartments will fail to reap the benefit of Rera as these projects would not be legally required to register. This leaves buyers in a compromised state,” said Rashesh Purohit, founder, NCR homebuyers association. Gaurav Prakash, a homebuyer in New Gurgaon, added, “Rera was introduced to address the pain of homebuyers. So how can the government lose sight of it? Why replace completion certificate with OC?” But the ground reality is such that this may have been the only practical way of implementing Rera. No residential project in Gurgaon has a completion certificate, said a senior official of Haryana’s department of town and country planning. “Only a few commercial projects have taken a CC. Not changing the criteria of ongoing projects would have created a big problem,” the official said. Various buyers’ groups said they were planning to file petitions in courts. “We are highly disappointed but kind of anticipated this. The Haryana Rera is a further dilution of the draft rules which we had all objected to,” said Shepalika Sharma, of the Forum of Apartment Owners in Gurgaon. Realtors had a different view, saying as long as buyers got delivery of their projects with the amenities promised to them, there should not be a problem, irrespective of whether the project had an OC or CC. “The delay in obtaining an occupation certificate or completion certificate is as much a function of delay from the government’s end as the developer. The Haryana government has wisely considered that fact and come out with a pragmatic Act,” said Jaxay Shah, president of realtors’ association Credai. “The government has not done anything wrong. This was the right way to move ahead,” said Parveen Jain, MD of Tulip Infrastructure and president of Naredco, another realtors’ collective. Rao Narbir Singh, Haryana’s PWD minister, said, “We have tried to bring out an Act which favours both developers and buyers. If there are any issues, people can approach us and we will take their concerns to the chief minister.” UP will replicate central law, claims Pankaj Singh Pankaj Singh, Noida’s BJP MLA, told TOI on Wednesday all changes the Rera draft brought in by previous Akhilesh Yadav government will be junked. “I have just had a discussion with chief minister Yogi Adityanath and housing department officials and it stands to be clarified that all changes made in the original Rera by the former UP government will stand cancelled after the matter is taken up in the (state) cabinet. It involves a certain process and that will be done. Buyers’ interests will be protected as it has been envisioned in the original Rera,” Singh said over a call from Lucknow. Currently, the rules notified by the Akhilesh Yadav regime are being used for Rera registrations in UP.  (source by:-The Economic Times)

Haryana cabinet to take up RERA today

Haryana cabinet to take up RERA today

July 25, 2017 in Uncategorized

GURUGRAM: The Haryana Real Estate Regulation and Development Act (Rera) will be tabled before the state cabineton Tuesday for discussions before the law is finally notified, a process that the Centre wants completed by July 31. Among the points that the cabinet will take up is the crucial one what the definition of 'ongoing project' will be, terms and conditions on parking, differential pricing, and pending litigations in real estate projects. Government sources said there will be some differences between the central and state laws. In terms of the definition of 'ongoing project', the state committee on Rera is likely to push for a "liberal interpretation". Homebuyers are watching this closely as the definition will decide the number of projects that come within the ambit of Rera. There are hundreds of housing projects in Gurgaon and Noida that are running behind schedule. Sunil Tyagi, a Delhi-based lawyer who advises multiple developers on Rera, said, "The central Act defines any project without a completion certificate as on May 1 2017 as an ongoing project but several states, including UP, Gujarat and Rajasthan have gone for a more liberal interpretation of the law." In Rajasthan, for instance, if 60% of sale deeds have been issued (even without issuance of a completion certificate), then a project is not classified as "ongoing" and is outside the purview of Rera, he added. In the draft version of Rera issued by the Haryana government earlier, it proposed that projects with part-completion certificates or occupancy certificates should also be kept outside the purview of Rera. The government, according to sources, is most likely to stick to that in the final law too. A government official said projects where realtors have applied for occupancy certificates before the date of the Act being notified were also likely to be kept outside Rera, even if they hadn't yet received these certificates, because it takes the government at least three months to issue the papers. The other major point of discussion before the state cabinet is the stipulation that 70% of the proceeds from sales be kept in an escrow account for completion of a particular project. The state Rera committee has suggested that Haryana follow the central Act in this regard and include land cost of a project and licensing fee as a part of 70%. The central Rera also stipulates that projects to be registered under the law must list out litigations related to that particular project, but the state Rera committee has suggested restricting that to litigation only relating to title and lapses or discrepancies in approvals. Suggestions have also been made to have a clear definition of parking spaces and charges applicable for them due to the high number of cases between developers and buyers on the issue. "The central Act defines any project without a completion certificate as 'ongoing' and there is very less scope for contemplation in this regard. Any diversion from that will be a dilution of the central Act," said Gaurav Prakash , a homebuyer in New Gurgaon. (source by:-The Economic Times)

30 residential plots in Gurugram to be auctioned next month

30 residential plots in Gurugram to be auctioned next month

July 24, 2017 in Uncategorized

GURUGRAM: Haryana Urban Development Authority (Huda) is planing to auction 30 residential plots on August 13 to raise around Rs 38 crore. Reeling under a financial crisis, the Authority is selling its properties at regular intervals to raise funds. All the plots are in Sector 9A. Out of the 30 plots up for auction, seven are of 1 kanal size (approximately 5,440 sq ft), eight are of 14 marla (around 270 sq ft), seven are of 10 marla, five are of 8 marla and three plots are of 2 marla. The plots of 1 kanal have a reserve price of Rs 2 crore, while 14 marla plots have a reserve price of Rs 1.37 crore. The 10 marla plots will start at Rs 1.05 crore, and the 8 marla plots have a reserve price of Rs 87 lakh. The 2 marla plots will be available for Rs 24 lakh. Those interested in bidding for the plots will have to deposit 10% of the reserve price of the plot for which they are willing to bid. “We have received a good response to our properties so far, and are hoping that all the properties will be sold during the e-auction,” a senior Huda official told TOI, adding that residential and institutional properties are easily sold out. The cash-strapped civic body is banking on selling its properties to meet its daily expenses. For this, Huda has been carrying out auction of property at regular intervals for the last one year. “We are hoping to collect Rs 100 crore in a month from the auction of properties. Till now, we have been putting up 30 properties at a time for auction. We are now planning to increase the limit to put up as many properties as possible under the hammer during an auction,” the official said. At a time when the real estate market is going through a bad phase, Huda has so far been successful in selling its properties through online auctions. Huda has successfully raised nearly Rs 700 crores by selling its properties through e-auction since May 2016. “We have been getting a very good response from residents. Most of the properties are being sold above the reserve price,” the official added.  (source by:-The Economic Times)

Delhi HC mulls to stay property conversions that do no adhere to master plan

Delhi HC mulls to stay property conversions that do no adhere to master plan

July 22, 2017 in Uncategorized

NEW DELHI: The Delhi High Court on Friday said the national capital "will breathe" easier if it stays all the conversions of residential property to commercial use that have not adhered to the master plan requirements. A bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar made the observation while expressing concern over the large number of coaching institutes in residential areas of the city causing "parking woes" and other "inconveniences" to residents. The North Delhi Municipal Corporation also received a dressing down from the court for filing a status report which lacked the details sought by it. The high court said that such coaching centres are running with the "active connivance" of the MCD officials, who need to be sent to jail. "We have made clear that law has to be complied with strictly," the bench said, adding that "at least follow our direction on compliance". "Allow us to do something for the citizens of Delhi," the bench said observing that it was considering staying the conversion of those commercial establishments which have not adhered to the norms provided under the Master Plan of Delhi. It said that merely because the master plan permits mixed use or conversion of a property in an area, residential buildings cannot be used for commercial purpose without complying with the building norms. "There can be no excuse for non-compliance," it said. The court asked the corporations, "Why shouldn't we stay all these conversions? Delhi will breathe. What kind of planning is this? The whole street has been converted into a coaching area with institutes coming up neck and neck. "Did you check if there was sufficient parking space for vehicles of students and staff coming to these institutes? Did you look into the inconvenience faced by residents there?" The court was unhappy with the civic body's status report which lacked details of the number of institutes in its area, the students in each at any given point of time as well as how many vehicles are coming to the coaching centres, as was sought by it on the last date. "How dare you file rubbish like this? We never gave a direction to conceal information. We asked you to go there and inspect. Go and stand on the road and calculate the number of vehicles coming and going," an angry court said to the lawyer representing the North MCD. "You should help us do justice," it told the corporation and directed it to file a better status report.  (source by:-The Economic Times)

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