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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)

Indian-American-led Dream Hotels to open property in Delhi

Indian-American-led Dream Hotels to open property in Delhi

July 20, 2017 in Uncategorized

Indian-American hotelier Sant Singh Chatwal has signed an agreement to expand its business to India with opening of a luxurious hotel in New Delhi in 2019. The Chatwal-led Dream Hotel Group signed the hotel management agreement here on Monday with Viiking Ventures chairman Sachiin Joshi to open the Dream Hotel in the Indian capital. Set to open in West Delhi's central business district, Dream New Delhi will feature 187 guest rooms and suites and other hi-end amenities. Chatwal said with Dream Hotel Group's "unprecedented growth and high-velocity expansion, we are well positioned to triple our existing portfolio in less than five-years." The agreement comes on the heels of the company's major international expansion plans with nine new hotel signings across all four brands - Dream Hotels, Time Hotels, The Chatwal and Unscripted Hotels. With 16 hotels currently open and an additional 26 properties in the pipeline, Dream Hotel Group will substantially increase its global footprint over the next four years; tripling its existing portfolio by 2022, Chatwal said. Additional signed locations by Dream Hotel Group include Dallas, Vietnam, the Maldives and the Dominican Republic and represent $750 million in new hotel development, all with independent development partners. "India is among the fastest growing economies and we are excited to take the hospitalityindustry in this country to new heights" with the tie-up with Chatwal, Joshi said.  (source by:-The Economic Times)

Top 8 cities record 12.5 million sq ft office absorption in H1 2017: Report

Top 8 cities record 12.5 million sq ft office absorption in H1 2017: Report

July 19, 2017 in Uncategorized

Top eight property markets across India have recorded total net absorption of 12.5 million sq ft during the first half of 2017, down 11% from a year ago. Of the total net absorption between January and June, over nearly 57% was recorded in the second quarter of 2017, showed a Cushman & Wakefield report. Chennai was the only market among these cities to register a year-on-year growth of over 110% in the first half of 2017. All other cities registered an on-year decline in net absorption during the period due to a slow start in the first quarter ending March. Tapering supply has largely been responsible for the slowdown of net absorption in 2017, though there are some active enquiries by occupiers for consolidation/relocation of their office spaces hinting towards a healthy leasing activity by end of the year, the report added. “Leasing activity has gathered pace in the second quarter owing to large transactions by IT-BPM and BFSI occupiers. Despite headwinds and cautious stance by IT-BPM occupiers, the IT-BPM sector continues to be the primary demand driver,” said Anshul Jain, Managing Director, India, Cushman & Wakefield. “Limited availability of quality supply has encouraged occupiers to pre-commit office spaces resulting in a significant increase of about three times in such activity; primarily driven by IT-BPM and healthcare sectors in Hyderabad, Gurgaon and Bengaluru.” Supply for the first half of the year recorded a decline of nearly 50% as compared to last year with almost all markets experiencing a slowdown. Total supply was recorded at approximately 10 million sq ft in the first half of 2017. Chennai being again the only exception to this saw an increased supply of 32% from a year ago. This lack of supply has been a critical reason for the slowdown in uptake of space in the first half of 2017. “As the dust settles on the geo- political and economic upheavals across the world along with some ground changes such as increased supply of office space, we are expected to see a healthy net absorption of close 32 – 35 msf by end of the year. Further with pre-commitments of close to 6 million sq ft, we can expect the momentum of absorption to continue,” Jain added.  (source by:-The Economic Times)

Gulshan Homz to invest Rs 400 crore to develop 2 housing projects in Delhi-NCR

Gulshan Homz to invest Rs 400 crore to develop 2 housing projects in Delhi-NCR

July 18, 2017 in Uncategorized

NEW DELHI: Realty firm Gulshan Homz today said it will invest Rs 400 crore over next three years to develop two housing projects in Noida and Greater Noida. The company will build nearly 1,900 housing units in the two projects. Noida-based Gulshan Homz has launched 768 units in a 5.3 acre housing project 'Gulshan Botnia' on Noida Expressway for about Rs 48 lakh per unit. In another project named 'Gulshan Bellina' in Greater Noida, also known as Noida Extension, the company is constructing 1,124 housing units on seven acre land. Gulshan Homz Director Deepak Kapoor said the company will invest Rs 400 crore on construction of these two projects. "All investments of the current phase would be met through internal accruals, customer advances and financial institutions," said Kapoor, who is also President, CREDAI Western UP. He expects market to revive post implementation of the GST and real estate regulatory Act (RERA). "Both the projects are RERA compliant and all necessary approvals are well in place," Kapoor said, adding that the company targets to deliver the two projects by 2020 as per commitment to customers. Gulshan Homz has so far delivered 4,500 units in the Delhi-NCR property market covering 4.3 million sq ft. It is developing about 1,900 units comprising 3.9 million sq ft.  (source by:-The Economic Times)

Haryana RERA issues show-cause notices to 10 builders

Haryana RERA issues show-cause notices to 10 builders

July 15, 2017 in Uncategorized

GURUGRAM: The Haryanagovernment issued showcause notices to 10 developers on Friday for advertising their projects without getting registered under the Haryana Real Estate Regulation Act (H-Rera). The notices come as a breather for home buyers, who have been batting against what they call “a builder-oriented Act”. According to officials in the interim body formed to implement Rera in the state, the developers have violated the Act by carrying advertisements between May 1 and June 3 for both new and existing projects, without registering these under the Act. “We issued the notices under Section 3 of the Act, which says a developer cannot advertise a project without registering it,” said chief town planner Dilbag Singh, a member of the interim body. A 15-day window has been given to defaulters to revert with responses. Regarding punishments for violations, Singh said as per Section 59 of the Act, the violations can lead to penalties up to 10% of project cost. Confusion is rife about whether the clause of needing to register a property before advertising it pertained only to new projects, or if covered existing projects as well. In a seminar organised by Ficci in Delhi on May 4, senior officials like Madhya Pradesh Rera chairman Anthony de Sa and Dilbag Singh had said there’s no bar on marketing and advertising ongoing projects. Later, though, in a letter to NAREDCO (National Real Estate Development Council) on June 12, HUPA (ministry of Housing and urban poverty alleviation) clarified that even ongoing projects can’t advertise without registering. “All projects are ready for registration under Rera by the July 31 deadline. The government itself is not ready. If they do, we’ll comply with all rules,” said R K Arora, MD, Supertech.  (source by:-The Economic Times)

IShareSpace aims to expand portfolio to 2,000 seats by 2018 end

IShareSpace aims to expand portfolio to 2,000 seats by 2018 end

July 14, 2017 in Uncategorized

Shared workspace provider IShareSpace is looking to expand its number of seats to around 2,000 across 15 centers by the end of 2018, said a top company official. “At two of our centers, we are already witnessing around 95% occupancy levels and the way shared office space segment is growing, we are looking to expand our portfolio rapidly,” said Priyanka Krishnan, co-founder, IShareSpace. For the propped expansion, the company is scouting for locations in new cities as well as within the cities it is currently operating in. In Mumbai, IShareSpace is actively scouting for a property in Andheri suburb of Mumbai and Indira Nagar in Bangalore to open new centers soon. IShareSpace had started its first pilot co-working space center in Mumbai with 40 seat capacity in April 2016. Currently, IShareSpace has total capacity of 420 seats across its four centers in Mumbai, Bangalore, Chennai and Gurgaon. Of these, the Bangalore center with 150 seats is the largest hub. The company is looking at using sub-leasing, management contracts and profit sharing options to tie-up with land lords for its expansion. The proposed expansion will be financed through a round of fund raising. “We are looking to raise $2 million-$5 million by the end of this year to support our expansion plan,” she said. With the concept of shared office space fast catching up in India, leasing of co-working spaces across the country is expected to touch 10 million sq ft by 2020, according to property consultant CBRE South Asia. While demand for shared office spaces more than tripled in 2016 to touch 0.7 million sq ft as compared to 2014, the leasing is expected to cross 1.5 million sq ft in 2017. Shared office spaces fall into 3 categories – traditional business centers, co-working spaces and incubators/accelerators. According to CBRE Research, currently, there are close to 350 shared office operators present in India, spread across 800 locations in Tier 1 and Tier 2 cities.  (source by:-The Economic Times)

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