After CREDAI Amrapali Homebuyers Now Move to NBCC, HUDCO

Amrapali projects seem to be the biggest troublemaker in property purchase history. Around 6000 homebuyers of Amrapali properties have asked the Uttar Pradhesh Government not to involve builders’ body CREDAI in the completion of the under construction projects and demanded assurances for the guideline to complete the rest of the productions.

An eight-member committal from various Amrapali projects met UP urban housing minister Suresh Khanna and proposed the government to bring state-run firms such as National Buildings Construction Corporation (NBCC) and Housing and Urban Development Corporation (HUDCO) to take over all the projects of Amrapali.

Mr. Rahul Kashyap from Amrapali Dream Valley project, an attendant member of the following meeting claimed, "It (CREDAI) itself is a builder lobby and has not even taken a single action in favour of homebuyers so far."

A three member panel constituted by the UP government to rack up this builder-buyer spat that had declared co-developers’ participation in the completion of the major unfinished projects.  Again the Builders body Confederation of Real Estate Developers' Associations of India (CREDAI) also suggested to het members or non-members to show up as investors or co-developers.

Yogi Adityanath, chief minister of Uttar Pradesh on Tuesday had also asked developers to ensure 50,000 apartments get delivered in the coming three months, ordering Noida, Greater Noida and Yamuna Expressway authorities to make possible the hand over procedure.

Homebuyers of several Amrapali projects has also seek clarification on what will happen to those projects where the construction has just competed to 20-30%  and for those where the construction process has even not started at all.

Hitesh Nakhasi, another Amrapali home buyer said, “We also clarification on the fast process of registries of those flat owners who had received the possession letters but are unable to complete the registration due to heavy dues Amrapali is supposed to pay to the authorities."

A total 13 FIR has been launched against six builders including Amrapali and Supertech. Yet, homebuyers had claimed that no actions had been taken so far against the incriminated people. They also demanded clarification on how would the government co-ordinate with the banks and HFCs for stop calculating EMIs and interests till the time possession will be allotted.

Reportedly Amrapali homebuyers had been on strike since Aug 12. If the outcome of this meeting with government wouldn’t satisfy their need, the buyers are on their toes to take their strike to the higher authority in order to secure their interest. They claimed that they had spent 8 long years with verbal assurance and now they seek everything penned.

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Renovation? Why not start from your kitchen?

Re modelling or renovation of property reflects the aesthetic sense of the owner. Renovation is nothing but transforming the exhibit of your property. It also means the reinvention of the used space by functionality. As kitchen is the heart of the home, not for the sake of a quality look, kitchen renovation incorporates increasing the space of activity and the space of movement as well. Kitchen is the only space that needs to be redesigned not only for the sake of visuals, but with essential safety measurement. Here we try to spawn the kitchen renovation easier by stating easy methods that you should take up while renovating your kitchen. 

Ensure what exactly what’s the purpose of your renovation?

The objection of the renovation should be clear to you, whether the aesthetic parameter or the practical matters to you the most. Make sure the intent of your renovation gets clearly decoded by the designer. It is the most basic and important part of the idea of the renovation. Communicate with the designer to set the goal clear before he puts his hand in the renovation. 

Set up more space around the appliances 

The design of your kitchen largely depends on the choice of your appliances, which means all your cooktop, fridge, microwave, dishwasher and dimensions hold vital role in the final layout design. But, when the layout is under prep, zoom into the fact that all these appliances can occupy right amount of space and avoid leaving unnecessary gaps around the appliances. While designing the lay out these three aspects should be equally speculated-

1. The measure of your movable space should be apt.

2. Placement of the sink should be by a corner.

3. Make sure there’s space for other people to get accommodated. 

Durability vs. Decor

All the space of storage should be proportionate and made of quality products. Because kitchen is the only space that can go wrong roughly. The decor should not overpower the necessity as well as the budget. So the renovation should be organized and planned within your budget. The sample or materials which are used for the renovation should come from a good manufacturing company. The design element and choice of colour of the products must have to be well in sync to bring out the desired effect of your remodelling purpose.

Decide what to and what not to compromise 

If you think usage of costly materials will tone down the future maintenance charges will be lesser, then you are certainly mistaken. Choices of materials determine the amount of energy and money you want spend on those in the coming days. Check out the full list of the materials and its pros and cons before your designer get his hands into designing. We recommend you to work with a professional team for remodelling your kitchen. 

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Let’s Take a Tour Around Major Policy Changes that Indian Realty Market Encountered Post Independence

Industrial development doesn’t get built in a day. From the inception to visible growth of industry bank on governmental intervene and individual business policies. An existing policy develops with extract of the previous one with some additional dressing. Indian economical policies are decided on the viewpoint of market conditions, geographical circumstances, socio-economic changes in population and other major and minor principles of a particular time period.

Real estate sector is globally one of the major revenue generating sectors when it comes to the contribution to the economy. Alike the other countries Indian real estate is not that on the button. Yet, it contributes 3-5% in national GDP; hence, the sector is largely blamed for lack of accountability.  Here we will talk about few major policy changes and its impact on Indian realty post independence.
India is about to complete 7 decades of its independence and it’s worthwhile to recall those policies that have had a resilient impact in Indian real estate.

1. Chandigarh and Gandhinagar were the first and second capital cities that came into picture in 1952 and 1960 respectively. Planning of the new cities had been started to be materialized.

2. The Maharashtra Regional and Town Planning Act, 1966, first integrated the practice of development plans and town planning. The planning commission then stretched it further towards district development and issued its first guidelines for district planning in 1969.

3. To tone down increasing land prices in urban areas and to provide low income housing, The Urban Land (Ceiling and Regulation) Act was enacted in 1976, which totally failed to serve its purpose and ended up worsening the availability of land for social infrastructure and social housing apart from states like Kerala and West Bengal.

4. Housing and Urban Development Company was the first real estate correlated government institution developed in 1970. Thereafter City and Industrial Development Corporation in 1971, the Mumbai Metropolitan Region Development Authority in 1975, National Housing Bank in 1988, and the Housing Development Finance Corporation in 1994 were set up one by one to shape up and boost the real estate industry.

5. In 1991, when Indian market was on the way to recover its rising fiscal deficits, some monopolizing reformation occurred, which seeded the modernization of economy. Creating job opportunities, setting up big market for the consumers, access to multiple products and services- these were some revolutionary influx which paved the way for big MNCs arrival in Indian market. World-class office spaces started sprouting with this development.

6. The phase of 1994-99 was the imprint of India’s first property cycle as the market. NRI and Foreign capitals started delving into Indian realty which hiked the property prices up. The market took south post 1995 due to fundamental disorganization. The misfortune continued with the approach of the Asian Financial Crisis in 1997-98. Foreign capital just got vanished from the market overnight.

7. In 1992, the concept of commercialization of airspace above transit routes was introduced at Vashi station. Sanpada, Juinagar, Nerul and CBD Belapur – on the same railway line followed the track of Vashi. Seawoods-Darave, the latest transformation in 2017 railway station was a huge hit.

8. India got its recognition in the global software business. The inception of Y2K turned out to be fruitful for Indian realty business. IT sectors and foreign companies started setting up offices in cities like Hyderabad and Bengaluru during this period which advanced residential and commercial requirement.

9. Foreign Direct Investment was allowed to invest in real estate in 2005, which led to complete transformation in business practises and product offering in real estate.

10. India’s first retail mall had been introduced in Chennai-‘Spencer Plaza’ in the early 2000.

11. With the governmental sanction of reconstruction and remodelling brownfield and Greenfield
airports through public-private partnership, the idea of airport cities and airport precinct real estate was came in fact.

12. The crash of Lehman Brothers in 2008, followed by sub-prime crisis led investors questioning the security of investment in asset classes. Global financial slowdown had a big blow in commercial real estate market and more or less the residential market too. But Indian residential market recovered within no time.

13. Implementation of RERA- the Real Estate Regulation (and Development) Act in Mat 1, 2017 has been considered as a major reformation of the real estate sector. With an objective of securing the buyers rights RERA will be the watchdog of entire real estate transactions of the country. RERA will empower homebuyers with more confident in terms of real estate investments. Small-scale developers will be non-existent as continuation of business under RERA purview will be a bit too much for them.

14. ‘Housing for all by 2022’- an ambitious project of central government is another scoop aiming to boost Indian real estate sale. Providing home for lower and medium income group at moderate price and prohibition of illegal land acquisition are backing this scheme. India is set to provide 20 million homes by 2022 to the economically weaker section of the country.

15. The Real Estate Investment Trusts will allow the investors of every budget chipping in prime commercial real estate market. REIT was first introduced in 2014.  It will open a new sky for the development of modern commercial spaces as well as rising rentals across their micro markets.

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RERA Deadline Gets Extended In Goa

People, who had been waiting for property investment in Goa, have to wait till October for the postponement in state RERA implementation. According to the sources, Goa is unlikely to meet the additional time-stretch, given the by the central government on May 1. The Real Estate (Regulation and Development), came into force on May 1, since most of the states and UTs failed to notify, their RERA norms within this time limit, government had given a buffer time of 3 months, which is also about to end by July 31.

The state government of Goa has decided to extend to time limit of notifying the RERA rules for ongoing projects till October. Whereas, the union government and other states have declared that no extension will be granted after July 31. Despite its enforcement of May 1, 2017; the act has been introduced a year after of its bill pass by the both houses of the parliament. As per the central act, all the developers, agents and ongoing projects will have to be registered with the Real Estate Regulatory Authority by July 31.
The more states and UTs delay in their submission, the greater chance of the dilution of the key provisions of RERA. It was said that any unregistered project after July 31, would be declared as unauthorized and RERA holds the complete authority to seize the project. Since, the state government has failed to notify the rules and the authority as on date, the ministry of urban development has granted Goa additional time to register on time.

Designated RERA authority of the state Sudhir Mahajan said, “Builders and promoters can submit their applications of new and ongoing projects in the prescribed form which can be downloaded from the website. For ongoing projects, applications for registration will be accepted up to October 31, 2017, without levy of penalty.”
“Notification of the rules will take time. We will try to do it at the earliest,” added- Mr. Mahajan. Goa is one of those few states, which has failed to meet the timeline of notifying RERA rules. Sources have revealed that state RERA rules of Goa has been parallel to MahaRERA rules, which somewhat diluted the penalty provision for non-compliance by the builders.
The sole objective of RERA enforcement is to bring accountability and transparency to all real estate transactions. Abrupt change in plan of action and other whims of the developers and realtors will be granted no longer under RERA purview. Again, no broker or developer can advertise their respective project before getting registered with RERA. A builder needs to pay Rs. 10 per sq ft as registration fee for a project. Yet, central government is keeping mum regarding this entire event.

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Bombay High Court Ordered Builders To Be Registered By July 31

Bombay high court (the Nagpur bench) has directed a group of builders to comply with a July 31 registration deadline under Real Estate Regulation and Development Act (RERA), 2016. What happened was a group of builders have applied for the extension of the month end deadline set under the revised Real Estate Act.

After hearing a petition filed by four builders, who questioned the constitutional validity of certain strict and frivolous provisions of the new law which according to them shouldn’t be applicable for the projects that have started before RERA had come into frame and at under-constructional stage.
Against which the union government mentioned in an affidavit that RERA is not against constitution nor it is a retrospective application as ongoing projects are not complete. The centre in its affidavit also said that "The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act.'' The Real Estate Regulation and Development Act (RERA), 2016 was passed in March 2017. Builders have been found largely belittling its legal importance.
Limited percentage of builders has registered under RERA as of now, while the deadline is just at approaching stage. Government also highlighted that the provisions of RERA where it clearly cited that the responsibilities of the promoter and related penalties for the violation. All these were declared nationally from May 1 and accordingly developers should get registered by far. Already the government has allowed 3 months extension period for the registration purpose.

As per the last update a division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to revise their petition within a week and adjourned the matter to August 21 for additional hearing.
Senior counsel Mr. Sunil Manohar, who appeared for the developers, said that the developers would comply with the registration deadline for sure but the state should not take intimidating action against the developers. Additional Solicitor stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action".

According to the petition, the provisions where it is stated that opening an escrow account and maintaining 70% balance for the existing project development is against real estate sale and it’s unconstitutional as well from the perspective of real estate business development.

“People who want to buy property in Kolkata incoming days must have to check few things before coming to any agreement with the builders for instance they need to check whether the project and the developer is registered with RERA authorities and having a valid registration number. It’s also recommended for their better security to crosscheck developers’ and realtors’ track record on the state RERA website. Buyers are also advised to be sure about the project’s authentication such as whether the project has received required certificates from several authorities or not for their better security,”- said Mr. Mahesh Somani West Bengal RERA & Realty expert.

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Still in Doubt Regarding RERA Stipulation? Banks Seek Further Collateral From The Builders

Leading market players such as ICICI, State Bank of India and Yes Bank are seeking additional pledge on housing loan disbursement to the realty developers. In some lending agreements banks asked the borrowers to avail the loan against their personal property mortgage. Banks are worried that the new real estate law might impact their existing set of home loan terms and conditions.

What’s collateral?
In lending agreements the term ‘collateral’ is referred as secure lending. It’s an asset-based lending. Under any circumstance if the borrower defaults the agreement, in terms of repayment of principal or interests, bank has the authority to seize the respective property. Collateral must be equal or greater than the loan or credit extension amount.

What RERA suggests-
As per the revised law of Real Estate (Regulation and Development) Act, 2016 (RERA), a developer should maintain 70% money received from the home buyers in a separate (escrow) account. This would allocate only 30% of the sales proceeds. Earlier on, builders used to jumble this entire collected amount for other project development. RERA will finally uproot every tangle from the inception.
Now banks are considering that following this strict regulation might lead to violation of RBI preset provision rules. In one of such cases, a reputed Mumbai-based builder, who borrowed certain amount through a consortium of banks and other non-banking financial companies (NBFCs), might put in the soup. The developer had pledged his upcoming G+5 residential project as collateral and the lenders had full control of sales receipts. After RERA, additional collateral option in a project has become extinct.

“Under RERA regime a developer needs to put up his personal belongings/immovable asset as collateral rather than any of his real estate ventures. Definitely, he will be asked to give his personal guarantee, - said West Bengal RERA and realty expert Mr. Mahesh Somani.

What banks have been directed to?
The authority mailed ICICI, SBI and Yes Bank. As per the latest update banks didn’t respond to the same. Speaking on the same banks said that it’s too early to opine on this matter. Quoting the comments of the CEO of HDFC, “30% of the sales proceeds over which lenders have right, is only towards the principal repayment by the developer while interest is to be serviced out of the balance 70%. Even though lenders had access to 100% of the sales proceeds prior to RERA, they hardly used the entire sum."

The leading property portal in Kolkata banks will soon modify their existing norms as per RERA stricture. Yet, banks don’t want to reveal their policy. Mortgage lenders are worried if their projects get stuck under RERA. Lenders including NBFC and PE firms are thinking of ways to defend this unexpected risk. There are many instances where banks have invested with a buyback security or an option of converting debt to equity and approving part of the project. In a bid to import transparency to the realty sector RERA is going to make loan conditions difficult, expected by the market trackers.

LNN (Liyans News Network)
  

Housing Society Lifestyle Will Be Fancy With GST Rollout

This might sound bizarre, but living in a housing complex will cost you chock-full. GST is likely to umpire the taxability on every transaction. Taxpaying on realty apartments will be mostly unchanged as it will boil down multiple taxability into a single one. On which experts think that implementation of GST will bring down property prices nationally. While property purchase will be cheaper, living in a gated society will definitely roast your leisure.

Higher maintenance charges 
GST will likely to fire up maintenance charges of the society. Post GST maintenance charge will set to get under 18% tax slab, which will levy additional burden of 2.5% on inhabitants. The existing rate is 15.55%, which includes 15% service tax, 0.5% Swachh Bharat cess and 0.05% non-agriculture tax. The liability of taxpaying is to be imposed on the end users not on the sellers. Expenses such as- legal fees, security expenses, transport charges, labour charges might attract GST on RCM (Reverse Charge Mechanism) based on whether the CHS (cooperative housing society) billing surpass Rs 20 lakh or not in the previous FY. Maintenance charge will directly payable to society.

Not including property tax
Government hasn’t subsumed property tax into the fresh tax regime. Property owners will keep paying property taxes on yearly basis according to the state GST law.

Additional charges
Barring AMC (Annual Maintenance Charge) water usage will be accountable under a separate head of GST. But electricity bill won’t be taxable under GST.

Repair or renovation to be acclamatory 
In case housing society carries out any renovation, repairing or even paining and needs to buy commodities such as- cement, paint or steel, the tax paid for the same purpose will be deducted from the total amount paid under GST tax regime.  But it’s only possible when the society welfare association makes full use of the input credit. Hence, the repair fund will attract 18% tax slab of GST.

Housing societies with advanced pursue and annual corpus of over 20 lacs should get registered under GST ambit. On monthly average of 5k maintenance charge if the annual maintenance cost stands over 20 lacs, then the society will be liable to pay GST. If the total billing is more than 20 lacs but less than 75 lacs the CHS may choose to call for the composition scheme.

-- LNN (Liyans News Network)- Buy flats in Rajarhat before GST. Huge sale is ongoing on the luxury residential projects. Invest in lifestyle apartments for advanced future. Save up to 5 lacs with every successful deal. 

Consumers won’t be able to file complaints on RERA website until builders don’t register on the portal

RERA came in to force on May, 1. Still majority of the states hasn’t notified their rules yet.  Now, twist is that, RERA website will be unable to take complaints of the homebuyers prior to the registration of promoters. RERA has specified regulations for buyers, developers and realty agents.
Builders have three months buffer time to register themselves, even after RERA implementation. Thus, buyers will have to hold their complaints for another 3 months, even after RERA implementation. Unable to deal with the further delay, a group of homebuyers have approached the Pune Grahak Manch, a consumer forum with their complaints. This forum will undertake these complaints to RERA authorities and the state housing department.

In a press release an official of Pune Grahak Manch declared, “The aggrieved consumers can either register their complaints with RERA or the consumer court. If a developer does not register with the RERA website and seeks extension, the consumers will be left with no other option but to move consumer court, which already has a huge pendency of cases.”
Project those are out of RERA ambit, if found illegal in future will those be demolished? - This is one major question that’s doing rounds in the minds of existing property owners. Under any circumstances if the promoter is found bankrupt and leaves the project half-done, then how will the invested amount be recovered? RERA should provide legitimate solution to these queries.

Since, RERA website is unable to take consumers’ complaints there’s no alternative way for the buyers to take up their complaints to the consumer forums. As soon as the developers get themselves registered, the gateway will be automatically accepting complaints of the buyers too, that’s the rule.
Buyers’ are found losing their interests from RERA implementation and its power and functions, due to the repeated postponement of the complete execution of central law. But in conclusion, homebuyers will have to hold their grievance for a little 3 month long.

-LNN (Liyans News Network) - We shall answer your every property query within given time. For, you need to write down your requirement under post your property requirements in Kolkata of www.liyans.com. 

What Should Be The Appropriate Age For Real Estate Investment?

Property investment is counted as adulthood responsibility/ investment in our country India. Only financially sound and career-wise secured people can afford to step in realty investment. Purchasing properties in metro cities are better kept for big pies. As to buy property in Kolkata one needs to have bellyful wealth. Well, that’s not utterly true. Real estate investment shouldn’t fall under any of such decree. But of course there is a certain age, when people can partake in real estate investment but that has merely any link with the very person’s upper-limit bank balance, again financial stability should a practical term while buying any property on loan.

Again banks and financial organizations are keen on lending money for long run to count the EMIs, not they will show any interest lending money to people who are on the verge of their retirements, as the idea of lending money to the borrowers for a long term untenable. Let’s go over the issue and come up with a genuine conclusion.

A person hits his/her 30s or around 30s, they have more or less 30 years ahead of career headway. Unsurprisingly they have enough scope for property investment and enough time to develop property miscellany. Having tried in 40s people can also achieve ownership of self-earned realty units. Even self-employed people can also build property investment portfolio at the beginning years of professional eon. Laying it on, the sooner you start property investment, the more you spin money for long period of time. Profit from property multiples with time. Financial solidity can get you a home loan even for the extreme pentagenarians. Financial organizations have also realized with the emerging time that people found working even after the conventional retirement age of 65 now-a-days.

Reconstruction is the key to increase value of one’s existing asset. A person who has years of expertise in property business, knows every nitty-gritty of resale realty market; for definite reasons he/she would like to deal in properties with impressive condition. Else, dissatisfaction lives every corner among the property investors. Once people have an anchored real estate portfolio of assets or distinctive influence or healthy holds in banks; in that case these existing properties can be presented as guarantee for fresh home loan application even if they belong to the 50 age group. Thus, raising loan for buying residential property is absolutely within reach at present.

However, it’s evident that there is no particular age or ‘ideal age’ for property investment or to buy personal residential property. Besides, home-loan EMI rates have also been curved by the banks to boost up real estate sale volume. Low-budget residential units are the latest addition in this ebb. Homes under PMAY will also be free from stamp duties and other prime tax labels. One can easily afford these residential units with easy available home loans. End of the day, your self-owned home gives the biggest security above all our living investments.

- By LNN (Liyans News Network)

PMO Requests That All Govt Depts Spot Unused Terrains For Housing For All

The administration needs to construct a land bank to give a push to the a land bank to give a push to the reasonable lodging activity

NEW DELHI: After achieving the midway sign of its term, Narendra Modi government is attempting to offer fillip to BJP's survey guarantee of Housing for All. The P ri me Minister's Of f ice has requested that all administration offices recognize unutilised arrive, particularly in officially created government settlements, to arrange moderate lodging ventures.

The administration needs to fabricate a land bank to give a push to the a land bank to give a push to the reasonable lodging activity. The states are confronting an issue in arranging lodging ventures on account of scarcity of land. With this activity, PMO is planning to distinguish arrive parcels and after that urge state governments to send proposition wherever there is accessibility of land. A senior government official told ET, "PMO is checking the advance nearly. Our experience is that a few states are performing superior to others since they as of now have their recipient records prepared and arrive accessibility is no issue there. So now mandates have gone to all services to set up a rundown of provinces where new houses can be assembled."

The urban advancement service is attempting to recognize arrive inside effectively created government states as these as of now have fundamental civilities and endorsements would not be an issue. Up until this point, the Center has affirmed lodging ventures worth `90,000 crore crosswise over 30 states and union regions. The administration has affirmed development of 16.42 lakh reasonable houses with Tamil Nadu driving the activity at 2.27 lakh houses, trailed by Andhra Pradesh with 1.94 lakh houses and Madhya Pradesh with 1.81 lakh houses.

By LNN (Liyans News Network)