December 2017 Vol 01
Indian Realty: An underrated Gold mine
After nearly a decade long era crippled with economic and political uncertainty, the global economy has stabilised and is showing healthy signs of recuperation. A reflection of the resurrected economic environment came across in the International Monetary Fund’s latest World Economic Outlook (WEO). The projections indicate that the global GDP would grow above 3.5 per cent per annum over the next five years. India is projected to grow at the rate of more than seven per cent, according to the IMF’s world economic outlook forecast.
Its economic robustness is also substantiated by the performance of its currency. In addition to the improving macros, a slew of policy reforms taking place in the country have wooed foreign investors back to its shores too. The new government has implemented several reforms to streamline and formalise the economy across all sectors. The recent roll-out of the Goods and Services Tax (GST) could be the cornerstone in this endeavour too. The strong fundamentals, robust economic growth, political stability, controlled inflation and the lower interest rate regime have improved India’s chances of a sovereign ratings upgrade within the next two-years.
Source: Times Property, Saturday 2 December 2017
Builder’s not liable to pay for ‘justified’ delay
The Maharashtra Real Estate Regulatory Authority has for the first time expanded the scope of reasons beyond a builder’s control. The authority upheld a city builder’s claim that a 2009 project was delayed due to change of law, administrative conflicts and “incorrect classification of the plot as CRZ II’’ —reasons beyond his control. Hence, the builder is not liable to pay compensation to a flat buyer for a “justified’’ delay of seven years in handing over possession, it held.
8k cr Bandra-Versova Sea Link plan cleared
If all goes according to plan, work on the Bandra-Versova Sea Link (BVSL) is expected to begin by 2018-19. The state government has finally granted administrative approval for the Rs 7,502-crore project eight years after the state cabinet committee on infrastructure cleared the proposal.
HC says RERA crucial for developing incomplete projects, upholds validity
The Bombay High Court on Wednesday upheld the constitutional validity of the Real Estate (Regulation and Development) Act (RERA), which had mainly been challenged by real estate developers. The court held that RERA “has adequate mechanism, which balances the rights and obligations of the promoter, real estate agent and the allottee”.
A bench of Justice Naresh Patil and Justice Rajesh Ketkar pronounced the judgment after hearing a bunch of petitions filed by real estate developers, individual plot owners and cooperative societies that had challenged the constitutional validity of various sections of the Act brought into effect in May this year. The bench, however, allowed significant prayers by the developers permitting the Real Estate Regulatory Authority to grant extension of time to a builder to complete the project in exceptional cases and on a case-to-case basis.
Taj Hotels gets the go ahead to rebuild Sea Rock, Mumbai’s glitziest hotel
The Taj Group, which bought Sea Rock in 2009, will construct a 30-storey hotel at the Bandstand site, with a magnificent swimming pool on the 31st floor. The Taj Group has been given the go-ahead to rebuild the Sea Rock Hotel, which was one of the sites hit in the 1993 serial blasts and was razed eventually in 2010. The Taj Group bought the hotel in 2009 from the father-son duo of Suresh and Sanjeev Nanda of the Claridges Hotel for Rs 680 crore.
The Indian Hotels Company, which runs Taj hotels, now has approvals to construct a 30-storyed building on the site on Bandstand in Bandra comprising a three-tier basement, six floors of common amenities, guest rooms from 7th to 29th floors and a swimming pool on the 31st. The Maharashtra Coastal Zone Management Authority (MCZMA) met to clear the hotel’s construction on October 30 and the minutes were finalised on December 12. The hotel, spread over six acres of prime seafront. A new property at the site makes eminent business sense for the Taj group as it owns another property, the Taj Lands End, just across the road.
MahaRERA plans teams to end disputes via Consensus
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to form nearly 15 conciliation teams comprising two members each, one from realty developers’ industry body and another from consumer forums representing homebuyers. Of these, 10 conciliation teams will take care of matters related to homebuyers from the Mumbai Metropolitan Region (MMR), while the rest five will be for the Pune real estate market.
“For now, we are setting up conciliation teams for MMR and Pune as most of the complaints we are receiving from homebuyers are for projects from these markets. If necessary, we can create separate teams for other key cities later on,” said MahaRERA chairperson Gautam Chatterjee. This is being done in the backdrop of MahaRERA receiving many complaints and wants to create a filter. This body can be approached by homebuyers and builders for reaching a consensus, thus leaving only matters that cannot be resolved for MahaRERA’s intervention.
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