Uncategorized

Gurugram: Ansal Fernhill buyers to launch protest against delay in flats delivery

Gurugram: Ansal Fernhill buyers to launch protest against delay in flats delivery

August 8, 2019 in Uncategorized

GURUGRAM: The buyers of Ansal Fernhill in Sector 91, who have been waiting for the handover of flats for more than a year after paying around 80% of the cost, have decided to launch a protest against the builder.
According to the agreement, the builder was supposed to hand over the flats by April 2018. However, several buyers alleged that till now they have not got any confirmation from the developer as to when they will get their property. They have also filed a complaint on the CM window.
“I hoped that I would get my home last year itself. Now, it seems to be a distant dream. I have already paid more than 90% cost of the flat, and now I’m need answers from the developer. I’m paying loan EMIs to the bank and also pay the rent to my house owner. This is an additional burden. We are planning to launch a protest on Saturday,” said Manish Nema, a homebuyer.
Rehan Khan, another buyer, said, “I fear that the builder might leave the country. We might not get our money and property. This goes back to 2011, precisely September 2011, when we booked our flat in Fernhills. The builder didn’t obtain any necessary clearances and approvals and had pre-launched the project to lure buyers. Almost eight years are over, and most buyers have paid almost 90% of the total cost. No action has been taken even though we lodged a complaint on the CM window last year.” According to buyers, a total of 700 flats were supposed to be developed.
TOI tried to contact the developer, but hasn’t received any response despite repeated attempts.

Sources: realty.economictimes.indiatimes.com

Builders’ current process of maintaining a collection account is wrong: UP-RERA

Builders’ current process of maintaining a collection account is wrong: UP-RERA

August 7, 2019 in Uncategorized

NEW DELHI: The current process of maintaining a collection account by builders to get all deposits before transferring the mandatory 70 percent of the money into escrow account is wrong, said the Uttar Pradesh Real Estate Regulatory Authority on Tuesday.
The realtors then transfer the remaining 30 percent of the money to third account operated by them for appropriating for purposes other than construction and land cost.
According to the authority, “This practice is apparently wrong. The promoters have to receive all the amount in the Escrow Account and only the money left after utilising 70 percent of the money for construction and land cost should be allowed to be withdrawn for a purpose other than construction and land cost. It is re-emphasized that this 70:30 percent ratio has to be maintained from the inception of the project.”
The above observation was made in a meeting held by UP-RERA officials with chief general managers and general mangers of all the public and private banks. The authority has issued appropriate directions to all the zonal heads and branch managers to comply with the RERA orders.
UP-RERA has also decided to verify all the projects accounts maintained with different banks. “The Chartered Accountants of RERA will be visiting the concerned branches in this regard,” said Rajive Kumar, chairman, UP-RERA.
The authority further said that there can not be any charge or lien on the separate project account, the bank can not recover the amount or instalment due from the promoter from this account. The bank can have lien on the account to which the promoter transfers 30 percent of the collected money.
“The bank can not insist that in case of loan for the project the promoter should open an account with it and receive all the money from the allottees in this account. Nor can be the bank insist on the promoter to transfer the balance money from the existing project account to new account,” said Abrar Ahmed, secretary, UP-RERA.
As per the provisions of section-4 (2) (l) (D) of Real Estate (Regulation and Development) Act 2016, seventy percent of the amount for a real estate project must be deposited in a separate account to be maintained in a bank to cover the cost of construction and the land cost.
The concerned branch is required to ensure that money is utilized for the specified purpose only and not for any other purposes. The bank must also ensure that the promoter is permitted to withdraw any amount from this account only after he has submitted the certificate from an engineer, an architect and a charted accountant.

Sources: realty.economictimes.indiatimes.com

BlackRock and CLSA Capital Partner invest Rs 375 crore in GoWork

BlackRock and CLSA Capital Partner invest Rs 375 crore in GoWork

August 6, 2019 in Uncategorized

NEW DELHI: Coworking operator GoWork on Tuesday said it has raised USD 53 million (around Rs 375 crore) debt funding from US-based BlackRock and CLSA Capital Partner to expand its business. GoWork currently has two coworking centres at Gurugram in Haryana, spread over 8 lakh square feet with a capacity of 12,000 seats.
“GoWork has raised USD 53 million from a private fund managed by BlackRock’s Private Credit team, along with CLSA Capital Partners’ Special Situations Group, in a round of debt funding,” the Gurugram-based coworking firm said in a statement.
This is the first onshore private financing transaction in India by global investment management firm BlackRock, it added.
GoWork will use this funding to further scale the business and provide value-added services to its clients.
GoWork CEO & Chief Evangelist, Sudeep Singh said, with their (BlackRock and CLSA) support, GoWork can further propel its growth across the length and breadth of all emerging markets in India.
It plans to have 50 centres across major cities of India by 2025.
As of June 30, 2019, BlackRock managed about USD 6.84 trillion in assets on behalf of investors worldwide.
CLSA Capital Partners is the alternative asset management business of CLSA, Asia’s leading capital markets and investment group.
In India, coworking segment is growing at a rapid pace, driven by demand for quality office space from startups, small and medium enterprises and large corporates. This segment is already accounting for 15-20 per cent of the total office space leasing across major seven cities.

Sources: realty.economictimes.indiatimes.com

UP-RERA orders forensic audit of 21 projects of Three C Projects

UP-RERA orders forensic audit of 21 projects of Three C Projects

July 30, 2019 in Uncategorized

NEW DELHI: Uttar Pradesh RERA (UP-RERA) on Monday ordered forensic audit of all 21 projects of Three C Projects which it has registered or is developing along with other builders.
The authority has decided that further action will be taken once empanelled auditors of RERA submits their audit report. The report is to be submitted within two months.
It has appointed officials of Noida and Greater Noida authority along with executive engineer of UP-RERA as the auditors.
The authority also cancelled the registration of four projects of Rohtas Group situated in Lucknow. The decision have been taken after it had issued show-cause notice to the promoters of the company. The projects whose registration have been cancelled are Rohtas Presidential Tower, Rohtas Plumeria Homes, Rohtas Platina Faizabad Road and Rohtas Summit.
The authority will now take further decisions under the Section-8 of RERA Act. Under this section, a proposal by association of allotees can be submitted to complete the rest of the project. If the proposal is not satisfactory, the authority will take suggestion from Uttar Pradesh government, Lucknow Development Authority or may involve co-developers.
UP-RERA has also decided to impose Rs 1 lakh fine on 253 projects whose promoters have failed to give quarterly update. It has also imposed Rs 2 lakh fine on promoters of 800 projects who have not defined quarterly targets. The promoters have to submit the fine within seven days.
Till date, the authority has resolved 9,487 complaints out of 15,994 complaints registered with it. It has received Rs 29.16 crore out of which Rs 18.45 crore have been transferred to allotees. Rest of the amount will be distributed soon, the authority said.

Sources: realty.economictimes.indiatimes.com

Raheja Developers to face insolvency proceedings

Raheja Developers to face insolvency proceedings

July 29, 2019 in Uncategorized

MUMBAI: Delhi-based builder Raheja Developers is facing insolvency proceedings as the National Company Law Appellate Tribunal (NCLAT) has directed the adjudicating authority to admit the matter under Section 9 of Insolvency and Bankruptcy Code, 2016.
The appellate tribunal has set aside an earlier order in a plea filed by one of the operational creditors, Ahluwalia Contracts (India). The adjudicating authority, the National Company Law Tribunal, New Delhi, had earlier rejected Ahluwalia Contracts’ application on the grounds that the claim fell within the ambit of “disputed claim”, and arbitration proceedings were initiated. The matter relates to an outstanding payment of ?6.51 crore.
However, the appellate tribunal has ruled that if the dispute was not raised prior to the issuance of the demand notice, existence of a disputed claim cannot be a ground to reject an application under Section 9 of the IBC. Ahluwalia Contracts had moved the NCLT after the developer failed to pay despite several demand notices for its outstanding dues related to work executed by the company.
Raheja had countered this with its claim that the matter related to the work and payment was under dispute and that arbitration proceedings regarding this were already initiated. “It’s a landmark judgement which will aid similarly placed creditors with much better clarity in cases where debtor has only a dispute with the quantum of claim and not with the existence of a claim,” said Shashank Garg, an advocate for Ahluwalia Contracts in the dispute.
“We have huge claims against Ahluwalia due to delay and poor construction/service on their part in the project that outweighs their claim. We are already in arbitration for the same,” said a spokesperson for Raheja Developers in an email response to ET’s query.

Sources: realty.economictimes.indiatimes.com

RERA notified in 30 states, 42,000 projects registered: Centre to SC

RERA notified in 30 states, 42,000 projects registered: Centre to SC

July 25, 2019 in Uncategorized

NEW DELHI: The Centre has told the Supreme Court that the Real Estate (Regulation and Development) Act (RERA), which is meant to address grievances of home-buyers, is being implemented across the country and 30 states and Union Territories have so far notified the rules.
Responding to the SC’s query on the status of implementation of Rera, the Centre in a report informed the court that 42,726 housing projects and 33,906 real estate agents have been registered under the 2016 Act and more than 20,000 disputes have so far been resolved under the law.
As per data compiled by the ministry of housing and urban affairs, the process to notify the rules under Rera is under way in Arunachal Pradesh, Meghalaya, Nagaland and Sikkim and 29 states/UTs have so far set up Real Estate Regulatory Authority and 22 States/UTs have set up Real Estate Appellate Tribunal.
Rera is not applicable in Jammu & Kashmir but the state has notified its own legislation. West Bengal has not implemented the law but enacted its own Act – West Bengal Housing Industry Regulation Act, 2017.
Maharashtra has been at the forefront in terms of number of projects registered under Rera with more than 21,000 projects coming under the purview of the law. It is followed by Gujarat and Uttar Pradesh where 5,751 and 2,673 projects have been registered under the law respectively.

 Sources: realty.economictimes.indiatimes.com

OCs of 20 houses in Gurugram’s Suncity Township cancelled for violating building norms

OCs of 20 houses in Gurugram’s Suncity Township cancelled for violating building norms

July 24, 2019 in Uncategorized

GURUGRAM: The town and country planning department has cancelled occupation certificates (OC) of around 20 houses in the upscale Suncity Township, located on Golf Course Road, for violation of building norms.
The department has also asked MCG to snap water and sewer connections to these houses meant for the economically weaker section.
In a letter to MCG, the district town planner wrote, “You are requested to disconnect water and sewer connections to the properties mentioned whose occupation certificates have been cancelled by the DTCP.”
The action came after the department found that owners of these EWS houses violated original building plans approved by it, following a survey to spot unauthorised construction in Suncity earlier this month.
The survey was initiated after the local residents complained to CM window against illegal structures in the township.
The houses were supposed to be constructed on plots of 64 square yards but the property owners had taken up additional area, violating the Haryana Development and Regulation of Urban Areas Act, 1975, officials said.
Residents and RWA have, however, alleged there are more such houses in the society which are illegally constructed and action should be taken against their owners too.
“Illegal construction is rampant in the township. We had first informed the developer but as our complaints were not heard, we filed our objections at CM window three times. The government has finally taken action,” said VMK Singh, a resident.
Another resident, Ajay Kumar, said, “This is surprising that though the construction was illegal, however, it got approval from the planning department and these illegal flats also received occupation certificates. This clearly shows that the government department is working for the builder.”
Despite repeated attempts, the Suncity management could not be contacted.
Officials from the department of town and country planning, however, confirmed they found violations in building plans “as a result of which, the occupation certificates were cancelled”.
“We will conduct routine checks on these houses in future as well. We will also investigate how these houses got OC in the first place,” said an official.

Sources: realty.economictimes.indiatimes.com

IFCI aims to sell real estate assets worth Rs 100 crore this fiscal

IFCI aims to sell real estate assets worth Rs 100 crore this fiscal

July 22, 2019 in Uncategorized

NEW DELHI: The country’s oldest public sector financial institution IFCI expects to mobilise Rs 1,500-2,000 crore from sale of non-core assets, including its stake in the National Stock Exchange (NSE), during the current fiscal to fund business growth, a top company official said. Besides, the company is looking at recovery of bad loans under the Insolvency and Bankruptcy Code.
“We have strategic investment in NSE and Clearing Corporation of India (CCIL) which will give good money for business growth. We will also try to monetise our stake in some of our subsidiaries based on approval from government,” IFCI Managing Director and CEO E S Rao told .
Currently, IFCI holds 2.4 per cent stake in NSE and 4 per cent in CCIL.
Regarding NSE stake sale, he said “clarity has come from the regulator side. There is appetite in the market. So we will divest our stake in the NSE in tranches as per the business needs.”
Rao said after SEBI passed its order on the NSE’s co-location case, the road is clear for the stake sale provided market conditions are also supportive.
Real estate is the other segment from where the company will mobilse some funds, he added.
“We would like to realise Rs 100 crore from real estate sales this year. Already a committee has been formed. Wherever we have real estate properties we will try to monetise them either in form of sale, lease or joint development,” he said.
“All these put together, we can get Rs 1,500 crore to Rs 2,000 crore from sale of assets depending on market condition and approvals,” he added.
IFCI is also looking to divest part of its stake in its subsidiary Stock Holding Corporation of India (SHCIL).
SHCIL has been a profit making and dividend paying company right from its inception. As on date, IFCI holds 52.86 per cent equity shareholding in SHCIL.
In addition, Rao said the Budget has proposed Rs 200 crore capital infusion in the company where government holds 56.42 per cent stake.
The fund infusion will help shore up IFCI’s capital and enhance operations.

Sources: realty.economictimes.indiatimes.com

Fate of Indian real estate hangs in balance as SC hears builders’ challenge to IBC

Fate of Indian real estate hangs in balance as SC hears builders’ challenge to IBC

July 19, 2019 in Uncategorized

NEW DELHI: The Supreme Court of India on Thursday heard the constitutional challenge filed by over 100 builders against the right provided to the homebuyers as ‘financial creditor’ under the section 7 of Insolvency and Bankruptcy Code.
The bench of justices Rohinton Fali Nariman, Sanjiv Khanna and Surya Kant took suo moto congizance and has directed the Additional Solicitor General (ASG) appearing for the government to provide a list of states where RERA authority, Appellate Tribunal and Adjudicating officer are not present.
The order comes after the advocates Aditya Parolia and Piyush Singh, representing over 300 home buyers, pointed out that the RERA act has still not been adopted or proper implementation has not taken place in most of the states.
“Many states have appointed government officers as temporary authorty,” said Parolia. The SC demanded a list of such states as well. The ASG will have to present this list to the court by Tuesday.
Pioneer Urban Land and Infrastructure filed a plea in the Supreme Court in January 2019, challenging the validity of section 5(8)(f) of the IBC2016, where homebuyers were given the right to be considered as financial creditors.
As many as 136 similar writs were filed by builders like Supertech, Parsvnath, BPTP, Ansal Hi-Tech Townships, Today Homes Noida, Ireo, SARE Shelters Projects, Wave MegaCity Centre, CHD Developers, Spaze Towers, Orris Infrastructure, AVP Buildtech, Three C Shelters, Emaar Hills Township, TDI Infrastructure, ATS Realty, among others.
All these writs were attached to the original plea of Pioneer Urban Land and Infrastructure and are being heard together.
According to the builders, home buyers must make their claim through RERA and consumer forums, and the amendment in IBC has only resulted in additional encumbrance upon them. They also say that the definition of ‘default’ occurring in such cases is not clear. The financial creditors can initiate the insolvency proceedings against a corporate debtor when it commits a ‘default’. In case of delay of a project the definition of ‘default’ becomes vague.
Also, according to builders, there have been cases where the delay has happened on the buyer’s end paying the instalments. They also dispute the ambiguity about treating home buyers as secured or unsecured creditors.
Hence, such cases when referred to insolvency forum turns into abuse of process of law and also sometimes lead to delay in project delivery.
In the previous hearing held on July 10, the ASG had said that there was no illegality in amendment brought by it in IBC. The centre had said that the law was amended to protect the interest of home buyers who had invested their money to purchase flats. The amendment helped in their representation in the Committee of Creditors under IBC.
The affidavit filed by the centre in the SC further said that the explanation was inserted under Section 5(8)(f), providing that the allottees under the real estate project are considered as financial creditors, was only for the purpose of abundant clarity.
The case will next be heard on July 23.

 Sources: realty.economictimes.indiatimes.com

Indian real estate developers at risk as credit dries up

Indian real estate developers at risk as credit dries up

July 16, 2019 in Uncategorized

Indian developers are at risk of going belly-up as mounting stress in the nation’s credit market dries up funding even for those willing to pay decade-high rates.
“With the worsening shadow-banking crisis, borrowing rates for most developers have surged to the highest in more than a decade, in some cases about 20%,” said Amit Goenka, managing director of Nisus Finance Services Co., which lends to developers. “Even at that cost, capital availability is limited.”
India’s year-old credit woes that began after a shock default by the IL&FS Group continue to linger, with many mortgage lenders struggling to roll over debt amid downgrades in their credit ratings. Shadow banks that lent heavily to developers in recent years are among the worst hit, as the recovery in housing sales remains tepid amid a slowdown in the nation’s economic growth.
Weak Demand
Borrowing costs have increased by about four percentage points over the past year and the funds pool for developers is now one-fifth of the previous year’s average, said Goenka. The cash crunch has raised questions around solvency of real-estate companies, and threatens to push 70% of them out of business in the next two years, Goldman Sachs Group Inc. said in a note last week.
Challenges to paying debt obligations amid a slump in apartment sales might force developers to sell assets, wherein lenders may face haircuts and exposure losses, India Ratings analysts, said earlier this month in a note. The dim outlook is reflected in the bond market, where dollar notes of property tycoon Mangal Prabhat Lodha have slumped amid weak liquidity and refinancing risks.
“There are pre-sanctioned limits on our projects, but disbursal is not happening as per the committed amount,” said Parth Mehta, managing director at Paradigm Realty, a Mumbai-based mid-sized developer. Decision-making at lenders is taking long with negotiation time doubling to 90 days, he said.
There’s hope that measures proposed in the budget on July 5, including lenders offering a partial credit guarantee for the purchase of high-rated pooled assets of sound non-bank finance companies, would help ease the cash crunch, Mehta said.

 Sources: realty.economictimes.indiatimes.com

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