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20-August-2019

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CREDAI Bengal Daily News Update | 20.08.19

KP Singh resigns as DLF's whole-time director, remains non-executive

chairman

To consider the resignation of Singh, the DLF board met on July 30 and accepted his

resignation as Whole-time Director designated as Chairman.

DLF Ltd patriarch K P Singh has stepped down as whole-time director but will continue to be its non-

executive Chairman, the realty firm said on Monday. In a regulatory filing, DLF informed that

shareholders' approval has been sought on a resolution through postal ballot for "appointment of K P

Singh for continuation as a non-executive director (designated as Chairman of the company.)"

In an explanatory note, the real estate major said its shareholders in the company's AGMheld on July

30, had approved the reappointment of Singh as a whole-time director designated as Chairman for a

period of five years with effect from October 1, 2018.

However, the 88-year-old Singh during the AGM informed the shareholders that it might not be

possible for him to continue as a Whole-time Director.

To consider the resignation of Singh, the DLF board met on July 30 and accepted his resignation as

Whole-time Director designated as Chairman.

"However, the Board unanimously agreed that it is necessary for the company to continue to avail the

benefit of Dr. Singh's invaluable experience and knowledge of the real estate business.

"At the request of the members of the Board, KP Singh, after much persuasion, has agreed to continue

as Non-Executive Director designated as Chairman," the postal ballot notice said.

Born on August 15, 1931, Singh was awarded with the Padma Bhushan in 2010.

DLF is the country's largest real estate firm in market capitalisation. It has developed many housing

and commercial projects across the country but has major presence in Gurugram, Haryana.

____________________________________________________________________

Newspaper/Online ET Realty (online)

Date August 20, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kp-singh-resigns-as-dlfs-whole-time-director/70746816

Page 3 of 33

Maharashtra to reduce premiums on fungible FSI

While FSI is the ratio of the total floor area of a building to the size of the land, fungible FSI is

the additional area that a developer may construct beyond the FSI granted to him.

The state government, in a major relief to the real estate industry, has decided to reduce premiums on

fungible FSI, a long-standing demand of the industry facing rising costs and a slump in demand.

According to a proposal cleared by Chief Minister Devendra Fadnavis on Monday, premiums on

fungible FSI for residential projects will be reduced from 50 per cent to 35 per cent and the same for

commercial projects from 60 per cent to 40 per cent.

While FSI is the ratio of the total floor area of a building to the size of the land, fungible FSI is the

additional area that a developer may construct beyond the FSI granted to him. Builders typically build

balconies, flower beds and terraces over and above the FSI granted. Municipal corporations charge a

premium for regularising these extra constructions based on ready reckoner rates.

The reduction in premium rates is likely to result in a loss of revenue of nearly Rs 800 crore a year to

the BMC. The civic body, however, expects that the new rates will spur growth in the construction

industry, resulting in more proposals for fungible compensatory areas coming its way.

According to the proposal cleared by Fadnavis on Monday, the premium on additional FSI for

Information Technology and IT Enabled Services (IT/ITES) sector and Central Business

Districts (like Nariman Point and BKC) will be reduced from 50 per cent to 40 per cent.

The premiums on additional built up area for MHADA have been cut by 50 per cent for projects

meant for economically weaker sections and low income groups and by 25 per cent for middle and

high income groups.

Development cess -- 100 per cent of development charge on built up area -- has been dropped for the

next two years.

The real estate industry has been going through a tough phase after lending from nonbanking finance

companies (NBFCs) stopped.

According to Anarock Property Consultants, the Mumbai Metropolitan Region (MMR) has 89 stalled

projects with 38,060 housing units worth an estimated Rs 802 crore.

The MMR also has the highest unsold inventory, which increased from 2,83,051 units in the previous

quarter to 2,90,089 in the April-June quarter, as per Liases Foras quarterly report released last week.



Link https://realty.economictimes.indiatimes.com/news/industry/maharashtra-to-reduce-premiums-on-fungible-fsi/70746931

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The overhang period for sale of this inventory stands at 51months.

The sales in MMR increased by 3 per cent over the the previous quarter, but registered a dip of 4 per

cent compared to the same period in 2018.

Municipal Commissioner Praveen Pardeshi said the municipal corporation’s earnings from fungible

FSI premiums were dipping anyway. “Even when the rates were not reduced, the total collection was

going down as real estate industry is in a slowdown mode. Hope this spurs the growth and increases

our revenues,” he said.

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Buyers of Airwil Intellicity pool money for insolvency resolution

As the developer has no funds, buyers say they are themselves raising Rs 1 crore for insolvency

resolution.

Buyers of Airwil Intellicity, who have filed an insolvency case at the National Company Law

Tribunal(NCLT) against the builder, are now chipping in to support the expenses of the interim

resolution professional.

As the developer has no funds, buyers say they are themselves raising Rs 1 crore for insolvency

resolution.

“As the builder has no funds to show in its books, we have no choice but to bear the expenses for the

IRP. It will come to about Rs 1 crore for 270 days’ proceedings and will be divided equally among the

1,900 buyers. Later, when the resolution is complete, this amount will be settled and reimbursed in

some manner,” said Geeta Mathur, a buyer.

Meanwhile, of the 1,900 buyers, only 520 have so far filed claim forms on Sunday. The remaining

have time till September 13 to come on board to claim their stakes. “We now want that all buyers

should quickly fill up their claim forms,” Mathur added.

The NCLT admitted the insolvency case against the builder on June 13. With the NCLT taking over

the resolution of the project, the ongoing UP-Rera proceedings now stand on hold.

Airwill Intellicity is a mixed-use project which consists of shops, offices and residential property has

been slapped a de-registration notice on March 8 by UP-Rera. The notice by UP-Rera was served after

the regulator ordered a forensic audit of the financial data of the company in November last year.

“There is some difference among buyers as one section went to UP-Rera and now there is an

insolvency resolution. However, with NCLT proceedings already in progress, buyers have no option

but to go through the motion,” Pradeep Khera, another buyer, said.

Airwil Intellicity is a 25-acre commercial project launched in 2011. The project was supposed to be

completed 2016-17.

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Link https://realty.economictimes.indiatimes.com/news/industry/buyers-of-airwil-intellicity-pool-money-for-insolvency-resolution/70746912

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DHFL makes fresh default on Rs 1,571 crore bond repayments

The beleaguered NBFC has not been able to fulfil its obligations towards debt repayment in the

recent past and there have been several cases of defaults on commercial papers and bonds.

DHFL on Monday said it has defaulted on its financial repayment obligations worth Rs 1,571 crore

with regard to issuance of bonds and commercial papers.

The defaults pertain to three cases with regard to interest payment on non-convertible debentures and

commercial papers (CPs), Dewan Housing Finance Corporation Ltd(DHFL) said in a regulatory

filing.

In a break-up, the non-banking financial company (NBFC) said it has defaulted on Rs 46.92 crore

towards interest amount on secured NCDs (9.92 per cent and 9.40 per cent/10 year tenor); on NCDs

issued through a public issue for multiple tenors of amount involving interest of Rs 363.77 crore and

principal amount of Rs 1,059.91 crore.

Besides, defaults of Rs 100 crore occurred on CPs.

The beleaguered NBFC has not been able to fulfil its obligations towards debt repayment in the recent

past and there have been several cases of defaults on commercial papers and bonds.

The company is estimated to be sitting on a debt-pile of over Rs 90,000 crore.

The NBFC sector has been reeling under stress since the unfolding of the IL&FS liquidity crisis in

September 2018 due to alleged fraud and mis-management issues.

Stock of DHFL closed 6.86 per cent up at Rs 49.05 on BSE.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-makes-fresh-default-on-rs-1571-crore-bond-repayments/70746882

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Buyers approach Delhi court seeking prosecution of Earth

Infrastructure

The Economic Offences Wing (EOW) of the Delhi Police, however, has told the court that the

provisions of MCOCA cannot be invoked, the association's counsel Amit Kumar said.

An association of homebuyers has approached a Delhi court seeking prosecution of a real estate

company and its officials under the stringent law MCOCA to curb "organised crime" in the real estate

sector.

Unific Tech-one Patrons Independent Association, an association of real estate buyers, filed a

complaint before Additional Sessions judge Ashish Aggarwal seeking a direction to the Delhi Police

to prosecute the directors of Earth Infrastructure under the Maharashtra Control of Organised Crime

Act (MCOCA) for allegedly cheating hundreds of investors of thousands of crores of rupees by

committing "organised crime".

The Economic Offences Wing (EOW) of the Delhi Police, however, has told the court that the

provisions of MCOCA cannot be invoked, the association's counsel Amit Kumar said.

Kumar told the court that the FIR invoking the provisions of MCOCA against the errant builders are

required since the existing legal framework has proved to be inadequate to curb or control the menace

of organised crime in real estate sector.

The court will further hear the matter on November 13.

In his complaint, the association has sought initiation of proceedings to prosecute four directors of

Earth Infrastructure -- Avdhesh Kumar, Rajneesh Mittal, Atul Gupta and Vikas Gupta -- under the

section of MCOCA for its failed projects.

According to the complaint, the four directors are accused of cheating a large number of investors on

the pretext of allotment of flats, shops, commercial spaces in its proposed projects at Noida, Greater

Noida, Gurgaon, etc.

Several project-wise cases were registered against the company and its four directors, who are in

judicial custody and facing trial for offences of cheating, criminal conspiracy and criminal breach of

trust, it said.

The complainants, however, want them to be prosecuted under MCOCA for cheating thousands of

investors in an organised manner.



Link https://realty.economictimes.indiatimes.com/news/regulatory/buyers-approach-delhi-court-seeking-prosecution-of-earth-infrastructure/70746901

Page 8 of 33

Since the association had also made a similar complaint before the EOW before moving the court, the

judge sought a status report from the police.

It its reply, the police told the court that to apply the provisions of MCOCA, something more in the

nature of coercive acts and violence was required, whereas in the cases charge sheeted by the EOW

against the directors of the company there were no allegations that violence or threat was used by the

accused persons.

In its complaint, the association has submitted that "in the year 2010, the accused persons formed a

gang and hatched a conspiracy with their common criminal intent to cheat the hard-earned money of

general public on the pretext of allotment of office spaces, shops/commercial spaces, residential

apartments, etc. through accused number 9 [M/s Earth Infrastructure Ltd.] and its associates/

subsidiaries companies/sister Concerns".

The association said that despite receiving thousands of crores of rupees from the buyers, the

company has not handed over any of the projects and "misappropriated the funds".

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Clearance for realty projects to soon be reduced to 60 days:

Environment Minister

The minister emphasized that small procedural delays can be done away with, without

compromising on environmental clearances.

Environmental clearance for real estate projects will soon be reduced to 60 days, Union Environment

and Forests Minister Prakash Javadekar said on Monday.

Speaking at the 15th national convention of the National Real Estate Development

Council (NAREDCO), Javedekar said that his ministry intends to reduce the whole process of

environmental clearance to real estate project to 60 days, in a few days from now.

He said environmental clearances used to be stumbling block before 2014.

"Average time taken to clear projects was 640 days. After we took over, we made processes so easy

that now it takes only 108 days for a project to get environmental clearance," Javadekar said.

The minister emphasized that small procedural delays can be done away with, without compromising

on environmental clearances.

"Our priority is both environmental protection and development, only then can our country become a

five-trillion-dollar economy. That's why the suggestions of institutions like NAREDCO are very

important," he told the gathering.

Javadekar said that his ministry is in the process of issuing standard conditions for every project, such

as water recycling and water harvesting as per the size of the real estate project. And these conditions

will not be more than 10.

"We are bringing about a regime change. We will introduce fewer conditions, but ensure their fullest

implementation. If need be, we will amend the law so that you get the ease of doing responsible

business. Because freedom is never a one-way street," the minister added, according to a statement.

He said that the Environment Ministry is also in discussion with states to make the environmental

process smoother and less time consuming.

The states must realize that the Centre has delegated environmental protection to them so they must

do it with a sense of responsibility, he said.



Link https://realty.economictimes.indiatimes.com/news/industry/clearance-for-realty-projects-to-soon-be-reduced-to-60-days-environment-minister/70746856

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DHFL lenders arrive at three-level resolution plan

The Reserve Bank of India (RBI), however, must green-light the plan since DHFL is a financial

institution.

Lenders to Dewan Housing Finance (DHFL) have agreed on a three-level resolution plan that

includes conversion of debt to equity and issuance of nonconvertible debentures, steps that will give

creditors majority stake in the embattled financier and help resume stalled credit lines, two people

with direct knowledge of the negotiations told ET.

The Reserve Bank of India (RBI), however, must green-light the plan since DHFL is a financial

institution.

“The plan that lending banks have broadly agreed upon involves conversion of some debt into

equity,” said a banker closely involved with the negotiations. “This is a small portion, may be 1 per

cent. The majority part of the equity conversion will come from the haircut banks take on the

wholesale loans of the company, at a nominal price of Rs 1 per share, which will give banks a

majority share in the company.”

Banks have a collective Rs 35,000-crore exposure to DHFL through loans, and the lenders also hold

debentures. Bond holders, which include mutual funds, insurance companies and pension funds, also

have a Rs 45,000-crore exposure, meaning the company owes its creditors Rs 80,000 crore.

DHFL is now classified as an SMA 2 (special mention account 2) exposure, meaning loans where the

payment of interest is delayed for more than 60 days but less than 90 days. That means the account is

still not classified as nonperforming. Banks said the last payment DHFL made on its loans was on

May 5, and that they are awaiting the next payment that fell due in July.

The restructuring plan being worked out by lenders also includes conversion of some loans into non-

convertible debentures, instruments that will be longerterm in nature and give the company some

breathing space on repayments. Mutual funds that have exposure to the company have also written to

the Securities and Exchange Board of India (Sebi), seeking permission to sign an inter-creditor

agreement (ICA) with lenders to join the resolution process in keeping with the central bank’s June

restructuring guidelines.

“Banks already have the majority but we are waiting for the nod from Sebi so that we get a super

majority, which will help process the resolution faster,” said the second person cited above. “This is

the best-case plan based on the present scenario but we need RBI approval as this is a financial

services company. The plan is now on the table but we are waiting for the Sebi nod and then we will

approach RBI.”



Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-lenders-arrive-at-three-level-resolution-plan/70733610

Page 12 of 33

State Bank of India (SBI), Bank of Baroda (BoB) and Union Bank of India (UBI) are the top lenders

to the company.

“We have time until September to sign off on this plan so a decision should be expected in the next

few days."

Lenders also plan to infuse fresh funds as loans into the company.

"The infusion will be done later once we have majority stake," said the second person cited above.

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Delhi consumer forum asks Unitech to refund Rs 33 lakh to homebuyer

It directed Unitech to refund Rs 33.59 lakh paid by Surhid Bhandari within 45 days along with

simple interest at 10% per annum for the seven-year delay in handing over the possession of the

apartment.

The Delhi State Consumer Commission has observed that homebuyers cannot be expected to wait

indefinitely for the possession of flats and directed real estate firm Unitech to refund over Rs 33 lakh

to a resident here.

It directed Unitech to refund Rs 33.59 lakh paid by Delhi resident Surhid Bhandari within 45 days

along with simple interest at 10 per cent per annum for the seven-year delay in handing over the

possession of the apartment.

The commission noted that Unitech has committed deficiency in service and also indulged in unfair

trade practice by not completing the construction despite receiving substantial amount from Bhandari.

"It stands established that the construction of the unit in question is not near completion yet and the

period of about seven years is already over. The opposite party (Unitech) has retained hard earned

money of the complainant," Presiding member of the commission Salma Noor said.

"There is no dispute that Unitech has failed to construct and deliver the possession of the flat till

today. The complainants cannot be expected to wait for possession of the flat for an indefinite period,"

said the commission.

According to Bhandari's complaint, he had applied for an apartment in Unitech's project named 'The

Residences' in 2012 opting for a construction linked installment plan.

He had paid Rs 33.59 to Unitech till January, 2013. however, since then he did not receive any

communication regarding progress of the project.

Bhandari alleged that Unitech did not give any response to his repeated attempts to seek update on the

project.

He said that even after receiving substantial payment till January, 2013, Unitech played a deliberate

fraud upon him by misrepresenting and giving false assurances about launching of their real estate

project.

Bhandari also issued a legal notice to the builder to which no reply was given.



Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-consumer-forum-asks-unitech-to-refund-rs-33-lakh-to-homebuyer/70738331

Page 14 of 33

Bhopal: Eviction notices served to six dilapidated houses in TT Nagar

Eviction cites that the structures are dilapidated and are too risky for those residing in it. These

structures are located in TT Nagar where a Rs 40-crore commercial complex has been

proposed.

People residing in six residential quarters have been served notice of eviction by Bhopal Smart City

Development Corporation Limited (BSCDCL).

Eviction cites that the structures are dilapidated and are too risky for those residing in it. These

structures are located in TT Nagar where a Rs 40-crore commercial complex has been proposed.

The move comes after review of Smart City development by top state government officials.

“Only six government quarters were remaining to be taken over. 40% of our construction work has

been completed,” said BMC city engineer O P Bhardwaj.

Those who have been served the notice have been lodged in PWD housing in the state capital. Many

of the displaced were first told they would be given accommodation in the new smart city construction

along Rangmahal.

However, the project is not expected to be completed before end of 2020, claimed sources.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/bhopal-eviction-notices-served-to-six-dilapidated-houses-in-tt-nagar/70735521

Page 15 of 33

Kolhapur civic body seeks waiver in tax for properties damaged in flood

Sharangdhar Deshmukh, chairman of the committee has claimed that the citizens shifted to the

shelter camps have lost their properties and other important materials.

Standing committee of Kolhapur Municipal Corporation(KMC) has demanded waiver in the property

tax of the properties stuck in the flooded waters of Panchaganga river.

Sharangdhar Deshmukh, chairman of the committee has claimed that the citizens shifted to the shelter

camps have lost their properties and other important materials. The flood affected citizens are not in a

position to pay any taxes claimed Deshmukh.

He said, “We have demanded that for the properties which are damaged in the floods, there should be

100% waiver in the property tax and for the partially damaged houses the waiver should be 50% of

the total bills. The inspection of the houses damaged is being carried out. Many people who have lost

their homes are still in shelter camps. There should be relief to them and the administration should

provide relief to them in every possible way.”

Over 10,000 people were shifted from the flood-affected areas. The civic administration estimates that

around 140 houses are damaged such that they have become unsafe to live in.

They have decided to carry out the structural audit of the houses, apartments stuck in the floods.

He said that the waiver in the property tax bills will not amount to huge loss to the KMC’s revenue.

He claimed that if the waiver scheme is accepted the total amount of property tax waived will not be

more than Rs 1 crore.

Deshmukh further stated that those owners who have already paid the annual property tax bills should

be given the waiver for the next year.

He also said that since the Kolhapur Municipal Transport (KMT) was out of service for two weeks,

the administration should extend the validity of the concession passes provided to students and senior

citizens by two weeks.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/kolhapur-civic-body-seeks-waiver-in-tax-for-properties-damaged-in-flood/70730710

Page 16 of 33

Ex-HAL society members in Hyderabad file RTI over 'encroachment'

of land

Ramu Suri, one of the members of the Hindustan Aeronautics Employees Cooperative Housing

Society, told they had bought 66 acres of land in 1981-82 in Hafeezpet here.

A group of members of a housing society formed by several retired Hindustan Aeronautics

Limited employees here filed an RTI query on Monday seeking information on the action taken on

"court orders related to removal of 'encroachments' in part of land they had bought in the city nearly

four decades ago.

In the petition submitted to the Commissioner of the Greater Hyderabad Municipal Corporation, the

Appellate Authority, under the Right to Information Act, they sought to know the GHMC's stand on

the "unauthorised constructions" on the property of the society.

"What is the action taken on the interim direction passed by the honourable high court in WP

No.39042/12 to the GHMC to take necessary steps to remove and raze to the ground all illegal and

unauthorised constructions raised in the land... within a period of 15 days," the RTI query asked.

Ramu Suri, one of the members of the Hindustan Aeronautics Employees Cooperative Housing

Society, told they had bought 66 acres of land in 1981-82 in Hafeezpet here.

He alleged that in 2007 some people close to the then ruling party had illegally erected structures,

including place of worship, and encroached about 16 acres of the society land.

Claiming that the state high court had in 2013 ruled in favour of the society and ordered removal of

the encroachments and demolition of the unauthorised structures, he said the directive had not been

implemented.

When contacted, Assistant Commissioner of Town Planing, GMHC, Srinivas Yadav said he received

the petition and has asked the society members to furnish copies of the court judgement and other

relevant documents.

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Link https://realty.economictimes.indiatimes.com/news/regulatory/ex-hal-society-members-in-hyderabad-file-rti-over-encroachment-of-land/70741287

Page 17 of 33

BEE urges Andhra Pradesh to save more power for growth

This will help AP, which is emerging as an industrial hub, to play a pivotal role in the industrial

sector, especially in micro, small and medium enterprises (MSME) sector, said BEE in a

statement on Sunday.

The bureau of energy efficiency (BEE) has urged the state energy department to take part in capacity

building in energy-efficient technologies.

This will help AP, which is emerging as an industrial hub, to play a pivotal role in the industrial

sector, especially in micro, small and medium enterprises (MSME) sector, said BEE in a statement on

Sunday.

In a communication to state energy secretary Nagulapalli Srikant, through Andhra Pradeshstate energy

conservation mission (APSECM), the director general of BEE Abhay Bhakresaid that 40% of the total

energy produced in the country is utilised by the industrial sector.

The energy consumption is expected to reach 443.4 Mtoe (million tonne of oil equivalent) by 2031 as

against the present consumption of 347 Mtoe in industrial sector alone, he said.

Bhakre observed that by implementing Perform Achieve and Trade (PAT) scheme, 165 Mtoe energy

can be saved by 2031 which is an equivalent of Rs 1.8 lakh crore. The cycle-I of PAT, implemented

between 2012 and 2015, has been a success in saving 8.67 Mtoe energy, which is worth Rs 9,500

crore. PAT cycle -II is expected to save 17.5 Mtoe of energy with reduction of 60 million tonnes of

carbon dioxide and Rs 19,100 crore worth in monetary savings.

Replying to the BEE, Srikant in a press release stated that the state government has made supplying

cost-effective energy a priority and it will help improve the potential of industrial development and

overall economic development.

The government also considers energy as one of the major components for industrial development

with land and water. The state will only be able to compete with other states in attracting industries

when it offers electricity at an affordable price and energy efficiency would help achieve the target, he

said.

Srikant further directed the joint managing directors of APTransco, CMDs of APEPDCL and

APSPDCL to coordinate and implement energy-efficient activities in all areas.



Link https://realty.economictimes.indiatimes.com/news/industry/bee-urges-andhra-pradesh-to-save-more-power-for-growth/70734897

Page 18 of 33

About 8,600 property owners in Ahmedabad pay less or no tax

This is followed by the Walled City where some 1,200 properties are said to be paying less tax

than expected.

There are close to 8,600 property owners in the city who either pay less property tax or claim

exemption without submitting adequate documents.

The AMC’s property tax department, after a detailed analysis of more than 10 lakh properties in the

city, have zeroed in on the West Zone of the city -- the highest tax paying zone — and have identified

roughly 3,000 properties there.

This is followed by the Walled City where some 1,200 properties are said to be paying less tax than

expected.

“The Walled City has several complex issues, including multiple ownerships, rent agreements that are

as old as three to eight decades and some properties are disputed among trusts,” says a senior AMC

tax department official.

The AMC is examining each of these cases and expects revenue recovery to run into crores. Other

zones like the North Zone has some 1,000 properties while South Zone has listed some 420 properties

as paying less tax or not paying at all. “We will investigate these property tax details and issue show-

cause notices to such properties,” said a senior AMC tax official.

He added that the East Zone has some 1,300 properties that have similar issues.

____________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/about-8600-property-owners-in-ahmedabad-pay-less-or-no-tax/70730748

Page 19 of 33

Kerala: Over 100 families to get new flats soon

The developers will hand over the complex to the corporation on September 25.

Kalluthankadavu apartment complex will be handed over to 146 families displaced for development

projects and living in slums on October 2.

A decision about the date of handing over of the apartment units was taken after labour and excise

minister T P Ramakrishnan along with corporation mayor Thottathil Raveendran and district

collector Sambasiva Raovisited the site of the apartment complex here on Saturday to check the

progress of the work.

The developers will hand over the complex to the corporation on September 25.

Speaking to reporters here after visiting the apartment units constructed on the 4.5 acres of old district

hospital land, Ramakrishnan said that electrification works were progressing on a war-footing.

The agency entrusted with the construction work of the apartment has sought the help of the minister

to ensure the cooperation of Kerala state electricity board (KSEB) for the timely completion of the

electrical works. The minister also informed that the collector would issue a special order for the

timely supply of rock powder to complete the work at the earliest.

A total of 90 families have been residing at Kalluthankadavu slum. The families are now at the relief

camp at Kandamkulam jubilee hall due to the flood. The project proposed to execute in three phases at

a cost of Rs 60 crore was envisaged in 2009 during the tenure of former mayor M Bhaskaran.

The proposal includes a wholesale vegetable and retail fruit market and a commercial complex on

built operate transfer basis.

Bengaluru-based Aramana Developers had commenced the construction work of the apartment

complex in 2009, but the work got halted soon after its commencement due to technical issues and

problems in land acquisition.

The apartment work was resumed in 2015 after a mayor-level empowered committee was formed to

monitor the project.

The minister also distributed relief kit to people at the camp at Jubilee hall.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/kerala-over-100-families-to-get-new-flats-soon/70733797

Page 20 of 33

Chandigarh MP declines relief to CHB flat owners

In response, Kher said, “I think, in the name of need-based changes, residents of CHB flats did

needless changes in their flats which is dangerous for them only.”

Upset with the Crawfed’s demand to give relaxation to Chandigarh Housing Board (CHB) flat

owners, MP Kirron Kher, in her first meeting in the city on Sunday after getting elected a second time

from here, said that the CHB should be closed if officials are not performing their duties, and insisted

that violators should also not be spared.

In a meeting with the MP, Hitesh Puri, chairman of the Chandigarh Residents' Association Welfare

Federation (Crawfed), sought Kher’s intervention to end the tussle between the CHB and the

residents, so that a solution is worked out that also suits the public, who made “need-based” changes

in their flats over the years.

In response, Kher said, “I think, in the name of need-based changes, residents of CHB flatsdid

needless changes in their flats which is dangerous for them only.”

She said that when the flats were sold, a specific area was given to the residents. But, with the passage

of time, they made alternations like covering balconies, and making divisions in rooms and

washrooms, which are not permissible.

Referring to a recent Punjab and Haryana high court order to the Chandigarh administration finance

secretary, she said that the officer was asked to ensure that no new further construction is done. In

fact, the court stated that on-the-spot notice should be issued to the violators and the construction

should be demolished.

Complaining about the residents’ attitude to misuse the relaxation, she said that during the elections,

when the authorities put on hold the process of issuing notices, new constructions were done by the

people in different sectors. “When they are aware of the CHB restrictions, why they did more

constructions,” she asked.

“For the safety of the residents, I am not in favour of the changes which greedy people did in their

houses,” Kher said. Pointing to another issue, she said that earlier, the residents had requested her for

a one-time fee for the CHB flat owners, who did the need-based changes.

But, after that was done, now she is being told that the fee is too high and that exemption be given to

them. She said that the authorities would charge fee from them at the market rate.

Talking about the issue of dumping of garbage by public in open places, she said that residents are



Link https://realty.economictimes.indiatimes.com/news/residential/chandigarh-mp-declines-relief-to-chb-flat-owners/70733884

Page 21 of 33

responsible to keep their surroundings clean and authorities cannot teach them everything.

Kher, however, supported the idea that the vendors should be removed from the market to retain the

“city beautiful” status of Chandigarh.

Referring to dog menace, she said that residents are also responsible, who like to feed them in streets

out of superstition.

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Construct rainwater harvesting units within three months: Tamil Nadu

rural minister

He said all the apartment complexes in the city should set up recycling plants and those that do

not have recycling plants would be issued notices within a week.

Tamil Nadu rural and municipal minister S P Velumani on Monday asked people in the state to

construct rainwater harvestingstructures in their buildings within three months. The minister warned

of action if people failed to construct the RWH structures within three months.

The minister was speaking at a review meeting held at the Greater Chennai Corporation on Monday.

He said all the apartment complexes in the city should set up recycling plants and those that do not

have recycling plants would be issued notices within a week.

“All types of buildings in the state, residential, commercial, factories, industries and private schools

should have rainwater harvesting structures. Some are seeking six months time to set them. But we

have given them three months to set up structures, ahead of the northeast monsoon,” said S P

Velumani.

The minister held a review meeting on the inspection of RWH structures and the lake rejuvenation

projects with officials of 14 corporations, 122 municipalities, 528 town panchayats, 12,525 village

panchayats in the state.

He stated that RWH is very important and these RWH structures should be set up in private,

commercial and government buildings within three months.

At the meeting, 14 private companies and NGOs signed an MoU with the Greater Chennai

Corporation to restore 34 lakes. The corporation plans to restore another 17 lakes under various other

schemes.

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Link https://realty.economictimes.indiatimes.com/news/residential/construct-rainwater-harvesting-units-within-three-months-tamil-nadu-rural-minister/70741377

Page 23 of 33

Nagpur civic body gets only 113 of 1,000 plots for roads’ expansion

Citing it as a plan to ease traffic congestion, the NMC proposed to widen Kelibagh Road, Old

Bhandara Road and Ramji Pahelwan Road situated at Central Nagpur.

The Nagpur Municipal Corporation (NMC) has got a massive setback in the land acquisition process

for widening of five major roads of the city. It has obtained only 113 of total 1,020 plots for widening

of the roads, forcing it to knock the door of the district administration to begin compulsory land

acquisition process.

Citing it as a plan to ease traffic congestion, the NMC proposed to widen Kelibagh Road, Old

Bhandara Road and Ramji Pahelwan Road situated at Central Nagpur. The NMC also proposed to

widen two stretches of Wardha Road for flyover being constructed between Ajni Square and Airport

Square, and four roads linking with Bhandara national highway— Old Bhandara road, Central

Avenue, Bhandara highway and Inner Ring Road— for flyover being constructed on these roads.

As per NMC’s data, 1,020 properties are needed to be acquired partially or fully for widening of these

roads. The NMC completed a lengthy process including demarcation of proposed width of the roads

and started land acquisition process over six months ago.

City MP and Union minister Nitin Gadkari sanctioned funds for execution of works. CM Devendra

Fadnavis approved funds for acquisition of the properties.

The NMC offered compensation of 2.5 times of ready reckoner value for the acquisition process. Still,

the civic body received a lukewarm response from owners of the properties.

As per NMC’s data, not a single sale deed was executed from the total of 587 properties required for

widening of Old Bhandara Road. The NMC got possession of 39 nazul plots that too due to

cooperation of the collector office, the data said.

For widening of Kelibagh Road, the civic body executed sale deeds for only 17 plots of total 129.

Here, the NMC managed to demolish its own zone office and part of commercial complex.

Of total 124 properties, sale deeds of 37 completed for widening of Ramji Pahelwan Road.

Sale deeds of only 35 of total 140 properties could be executed for Pardi flyover project. For Wardha

Road flyover project, sale deed of only 24 of total 40 have been executed.

NMC official told TOI the district administration has been requested to begin process for the

compulsory land acquisition. “We tried our best to convince people and realize them the importance



Link https://realty.economictimes.indiatimes.com/news/infrastructure/nagpur-civic-body-gets-only-113-of-1000-plots-for-roads-expansion/70730787

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of these projects. The widening of these roads are part of city’s development plan (DP). Therefore, the

district administration has powers to acquire the properties on compulsory basis. The NMC will

deposit compensation amount with district administration which would acquire the properties and

hand over to the civic body,” he said.

Sources in the NMC said the process will further delay the projects which proposed many years ago.

It requires again a lengthy process to acquire properties under compulsory land acquisition model. It

will take another six months or more. Project-affected persons will get only two times of ready

reckoner value in this process, the source.

THE BOTTLENECK

*NMC proposed to widen Kelibagh, Old Bhandara and Ramji Pahelwan roads saying it a must for

easing traffic congestion in Central Nagpur

*NHAI constructing flyover from Pardi Octroi Naka on Bhandara national highway to Old Bhandara

road, Central Avenue and Kalamna market

*NHAI through MahaMetro constructing flyover between Ajni square and Airport square on Wardha

road

*1,020 properties will effect partially or fully for all these projects

*CM Devendra Fadnavis sanctioned funds for land acquisition

*Union minister Nitin Gadkari approved funds for execution of works

*NMC started acquisition of these properties by offering 2.5 times of ready reckoner value

*Owners of only 113 of total 1,020 properties responded

*District administration has powers for acquire land on compulsory basis

*Now NMC requested district administration to acquire properties and hand over to it

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Page 25 of 33

Aviom Housing Finance raises Rs 60 crore

Further the company intends to utilise the equity infusion to raise another Rs 500 crore in the

form of debt for onward lending to consumers.

Aviom Housing Finance has raised Rs 60 crore in its series B round of funding from Japanese

investors Gojo and Company, Inc Japan, and Capital 4 Development Asia Fund, Netherlands. Unitus

Capital was the financial advisor to Aviom Housing Finance.

With the new round of funding, the total amount to be raised by the Delhi-based Aviom Housing

Finance has reached Rs 86 crore which the company will use to expand its scope of operations in tier

two towns and cities.

Further the company intends to utilise the equity infusion to raise another Rs 500 crore in the form of

debt for onward lending to consumers.

Targeting cities like Rajasthan, Karnataka, Uttaranchal and Delhi the company intends to tap the

opportunities in the low income section of the population who do not get home loans because of lack

of formal income proof.

“Aviom follows a strong in-house credit assessment model, which serves a dual purpose of

empowering women in rural India by creating jobs for them and allowing them to work flexible hours

to contribute to the overall economic development,” said Kajal Ilmi, Founder, Aviom.

The company has a team of 8,000 women agents who work as associates and aims to reach 50,000

women agents in a year’s time.

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Link https://realty.economictimes.indiatimes.com/news/allied-industries/aviom-housing-finance-raises-rs-60-crore/70733721

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Axis Bank cuts MCLR across all tenors

Axis Bank joins a long list of banks that have reduced their lending rates after RBI cut the repo

rate by 35 basis points earlier this month.

Private sector lender, Axis Bank, announced on Monday that it has cut its marginal cost-based lending

rates (MCLR) across all tenors. The bank has cut its one-year MCLR 8.55 percent from 8.65 percent

with effect from August 17, 2019.

Axis Bank joins a long list of banks that have reduced their lending rates after the Reserve Bank of

India (RBI) cut the repo rate by 35 basis points in its fourth monetary policy review for the calendar

year.

Here is a look at Axis Bank's MCLR with effect from August 17.

Tenor MCLR

Overnight 8.20%

One month 8.20%

Three

month

8.40%

Six month 8.50%

One year 8.55%

Two year 8.65%

Three year 8.70%

Source: Bank website

Banks that have cut MCLR

RBI has cut the repo rate four times this year adding up to a total of 110 bps. Banks have been taking

cue and have been reducing interest rates on loan through the year.

The country's largest lender, State Bank of India (SBI) was the first to announce a 15 bps reduction in



Link https://realty.economictimes.indiatimes.com/news/allied-industries/axis-bank-cuts-mclr-across-all-tenors/70741207

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MCLR across all tenors within hours of RBI's policy announcement on August 7. IDBI Bank and

Oriental Bank of Commerce lowered their rates by 5-10 bps while Bank of Baroda had announced a

cut in MCLR by 15 bps on August 5. UCO Bank, Allahabad Bank and Canara Bank have also cut

their MCLRs. Central Bank of India, too, announced a cut in its lending rates last week.

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Page 28 of 33

Cholamandalam plans to enter housing finance business

Cholamandalam is undeterred by the credit crunch that’s roiling shadow banks across the

nation.

Cholamandalam Investment & Finance Co., an Indian financier for vehicles, is persisting with its plan

to set up a mortgage-finance unit undeterred by a credit crunch that’s roiling shadow banks in the

nation.

A housing finance subsidiary will help the company grow its loan book faster, said Cholamandalam’s

Executive Director Arun Alagappan. The company will target buyers of low-cost homes and offer

loans of as much as Rs 15 lakh, he said.

Prime Minister Narendra Modi’s administration has pledged to build homes for poor Indian families

by 2022. A government plan to provide benefits including interest subsidies has seen a surge in

funding for affordable homes and lured buyers and financiers such as Cholamandalam, even as the

collapse of Infrastructure Leasing & Financial Services Ltd. led to a cash squeeze at shadow lenders.

“We see a huge opportunity,” Alagappan said in an interview in his office in Chennai. “We are doing

loans where we have the capability to underwrite loans.”

India plans to build 10 million houses in urban areas by 2022. It managed to build 2.64 million until

Aug. 13, according to data available from the Ministry of Housing and Urban Affairs. That compares

with a shortage of 18.78 million homes in towns and cities and 43.67 million in rural areas, according

to the National Housing Bank.

Cholamandalam will transfer its 26 billion rupee housing loan portfolio to the new housing subsidiary

once it gets its license, Alagappan said.

The housing finance license will also help Cholamandalam take advantage of refinancing options

from National Housing Bank, which supervises housing finance companies.

There are other incentives as well. Under the government’s Pradhan Mantri Awas Yojana -- prime

minister’s housing program -- for urban areas, the state will subsidize interest on mortgages of as

much as 1.8 million rupees.

Still, bad loans are the highest among borrowers who have taken loans of up to 200,000 rupees,

according to the NHB. Soured debt is lowest in the 1 million rupees to 2.5 million rupees bracket.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/cholamandalam-plans-to-enter-housing-finance-business/70741257

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Meanwhile, a malaise that’s hit luxury homes has started afflicting affordable property as well --

unsold inventory. India’s nine major cities at the end of June had more than 400,000 low-cost units

priced below 4.5 million rupees that couldn’t be sold, according to data available with PropTiger.com.

Mortgage finance companies including Dewan Housing Finance Corp. and Indiabulls Housing

Finance Ltd. have had their credit rating cut. Mumbai-based Dewan has been trying to sell-off assets

to raise funds, while its shares have tumbled.

“Even at the time of crisis when we went to banks for fundraising, we did not have any issues of

raising money,” Alagappan said. “For more than 20 quarters, Cholamandalam hasn’t had an asset

liability mismatch,” which has been the cause for trouble for many non-bank firms, he said.

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Page 30 of 33

Sebi to ease buyback norms for companies with housing finance, NBFC

arms

A proposal for the same is to be discussed by Sebi's board at its meeting this week.

Capital markets regulator Sebi is planning to ease its norms for buyback of shares by listed

companies, especially those having subsidiaries in housing finance and NBFC sectors.

According to top officials, a proposal in this regard is expected to be discussed by Sebi's board at its

meeting this week.

The repurchase of shares by listed companies is governed by the Buyback Regulations of the

Securities and Exchange Board of India (Sebi) as well as by the Companies Act.

Among the main conditions that the companies need to follow, the buyback offer cannot exceed 25

per cent of the aggregate paid-up capital and free reserves of the company, but shareholders' approval

is required through a special resolution in case of the size exceeding 10 per cent.

Also, a buyback is permitted only if the ratio of the aggregate of secured and unsecured debts owed by

the company after the buyback is not more than twice the paid-up capital and free reserves, unless a

higher debt-to-equity ratio is specified under the Companies Act.

While Sebi takes into account financial statements on standalone as well as consolidated basis for

evaluating the buyback thresholds, several issues have been raised in the recent past with regard to

considering consolidated financial statements for companies with subsidiaries having higher debt due

to their presence in businesses like NBFC and housing finance segments.

Sebi's proposal to amend its regulations also follow a notification by the Corporate Affairs Ministry

permitting government companies carrying out non-banking finance and housing finance activities to

launch buybacks resulting in up to 6:1 debt to equity ratio post the share repurchase.

After taking into account feedback to a public consultation process launched in May, Sebi has now

proposed to continue with the current approach of allowing buybacks resulting in post-buyback debt-

to-equity ratio of up to 2:1, except for companies for which a higher ratio has been notified under the

Companies Act, based on both standalone and consolidated basis.

However, if the debt to equity ratio on standalone basis does not exceed 2:1, but exceeds this

threshold on consolidated basis, buybacks would still be allowed if the consolidated ratio is up to 2:1

after excluding the subsidiaries that are NBFCs and housing finance companies regulated by RBI or



Link https://realty.economictimes.indiatimes.com/news/allied-industries/sebi-to-ease-buyback-norms-for-companies-with-housing-finance-nbfc-arms/70741167

Page 31 of 33

National Housing Bank.

But, the standalone debt to equity ratio of all such excluded subsidiaries should not exceed 5:1.

Sebi's Primary Market Advisory Committee had also suggested that regulated subsidiaries with AAA

ratings should be excluded for computing the debt-to-equity ratio on consolidated basis.

However, after taking into account the feedback, the regulator felt it would be difficult to prescribe,

monitor and enforce the proposed rating requirement due to practical implementation challenges such

as dynamic changes in ratings, age of ratings and difference in ratings of short-term and long-term

instruments.

Sebi has, therefore, decided to drop the condition relating to ratings.

Under the new rules, it would also be clarified that the financial statements would be considered on

both standalone and consolidated basis to determine the maximum permissible buyback size and other

related requirements.

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Page 32 of 33

UK house sales stronger than normal in August: Rightmove

"While the end of October Brexit outcome remains uncertain, more buyers are now going for

the certainty of doing a deal, with some having perhaps hesitated earlier in the year,"

Rightmove director Miles Shipside said.

August, normally a quiet month for Britain's property market, has seen a surge in sales, possibly due

to buyers seeking to conclude transactions before the country leaves the European Union on Oct. 31,

property website Rightmove said on Monday.

Rightmove said sales in the August period, which cover the four weeks to Aug. 10, were 6.1% higher

than a year earlier and their strongest for the month since 2015, bucking a generally sluggish trend

since June 2016's referendum on leaving the European Union.

"While the end of October Brexit outcome remains uncertain, more buyers are now going for the

certainty of doing a deal, with some having perhaps hesitated earlier in the year," Rightmove

director Miles Shipside said.

New Prime Minister Boris Johnson has promised to take Britain out of the EU by Oct. 31, even if that

means leaving without a transition deal - something most economists think will cause major

disruption to businesses and overseas trade.

But British consumers have largely shrugged off Brexit worries so far, bolstered by a strong labour

market and the fastest increases in wages in 11 years, in contrast to businesses, which have held back

from making major investments.

House price inflation has slowed since June 2016, according to official figures. But this has largely

been driven by price falls in London and surrounding areas, which have been most affected by higher

property taxes on expensive housing and fears of post-Brexit job losses in the financial services

sector.

Rightmove said asking prices on its website were down 1.0% on the previous month - a smaller fall

than normal for August, when many buyers are away on holiday - while prices were 1.2% higher than

a year earlier.

Sales rose fastest in northeast and eastern England, and the biggest fall in asking prices was in

southeast England excluding London.

Rightmove based its data on more than 130,000 prices collected between July 7 and Aug. 10 from its

website, which it says advertises 90% of residential property on sale in Britain.



Link https://realty.economictimes.indiatimes.com/news/residential/uk-house-sales-stronger-than-normal-in-august-rightmove/70734386

Page 33 of 33

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Documents

20-August-2019 - Credai Bengalcredaibengal.in/wp-content/uploads/2019/08/20Aug19... · 8/20/2019 · Buyers of Airwil Intellicity, who have filed an insolvency case at the National