March 2016 Vol 02

Dump yard effect: HC bans new constructions

The high court has banned new constructions in Mumbai over the failure of the state government and the BMC to solve the city’s dumping ground problem. Observing that a pollution-free environment is a fundamental right, a division bench of Justice Abhay Oka and Justice C V Bhadang said that compliance with municipal solid waste (MSW) rules appeared to be a “distant dream“. The ban comes into effect on Tuesday, March 1.

Source: The Times of India, Tuesday 1 March 2016

REITs may soon be a Reality

Real Estate Investment Trusts (REITs) are likely to become a reality in India soon as the government moves to remove dividend distribution tax (DDT) on them. This is expected to offer commercial developers a liquidity option and retail investors an opportunity to participate in the office realty market’s growth.

Source: The Economic Times, Tuesday 1 March 2016

More room for profits in Affordable Homes

The supply of affordable homes is expected to get a boost with the finance minister’s proposal to allow 100% deduction for profits to projects for building homes up to 30 sq m in the four metros and 60 sq m in other cities.The demand for affordable homes constitutes about 90% of the total demand for homes in India.The deduction has been given for projects approved between June 2016 and March 2019, and completed in three years.

The Budget has also proposed service tax exemption on construction of affordable houses up to 60 sq m under any government scheme.

Source: The Economic Times, Tuesday 1 March 2016

Forest department clears train through city’s national park

The Mumbai Metropolitan Region is set to lose 58 hectares of forest land, including 10 hectares of the Sanjay Gandhi National Park, to Prime Minister Narendra Modi’s pet Delhi Mumbai Freight Corridor project.In a final order issued on February 29, the State Forest Department de-reserved this large chunk of forest land spread across the Sanjay Gandhi National Park (10.55 hectares), the Thane forest division (16.17 hectares), and the Dahanu forest division (31.11 hectares).

The $90 billion Delhi-Mumbai Freight Corridor will connect Nhava Sheva Port to Dadri in UP. The project, monitored by the Prime Minister’s Office every fortnight, will be funded by Japan. It will cover a distance of 1,483 km between the political capital and the business capital of the country.

Source: Mumbai Mirror, Wednesday 2 March 2016

London most expensive city, Mumbai 17thon list

London has been ranked as the world’s most expensive city to live and work in, ahead of New York and Hong Kong, according to a UK study that puts Mumbai at 17th.The only India city on the list of top 20, Mumbai is ranked 17thahead only of Berlin, Johannesburg and Rio de Janeiro by the UK real estate firm Savills survey that was released on Monday.It compares the total annual cost of renting both residential and office accommodation per person in some of the world’s leading cities.

Source: Mumbai Mirror, Friday 4 March 2016

Land given to villagers near new airport selling for Rs.20cr an acre

Developers, high-net-worth investors, land speculators and real estate agents are buying up plots in bits and pieces from the locals. They expect a huge property boom and a subsequent rocketing of land prices once the airport comes up in a few years. The villagers are not complaining. Each acre commands an eye-popping Rs 20 crore (over Rs 60,000 a sq m), said local property market sources. But Sanjay Bhatia, chief of the local town planning agency, Cidco, pegged the selling rate at below Rs 10 crore an acre. “However, we expect the plot rate to more than double to Rs 1.5 lakh per sq m (Rs 60 crore per acre) when the airport becomes operational,”.

Source: The Times of India, Friday 11 March 2016

New buildings to have waste processing units

The state government is considering changes to the Development Control Regulations (DCR) to ensure zero garbage discharge in case of new constructions, CM DevendraFadnavis said on Thursday.He said no permissions will henceforth be given for a dumping ground rather only for a garbage processing plant.

Source: The Times of India, Friday 11 March 2016

Now, builders can’t get away with misleading ads

The Rajya Sabha passed the much-awaited Real Estate Bill on Thursday, prompting PM Narendra Modi to hail it as “great news for home buyers“.The bill, which seeks to regulate the property sector, bring in transparency and help protect consumer interests, is now slated to be taken up by the Lok Sabha on Monday.

All projects will have to be registered with regulatory authorities, and developers will have to disclose project information including details of the promoter, project, layout plan, land status, status of approvals and agreements along with details of real estate agents, contractors, architects and structural engineers.

Source: The Times of India, Friday 11 March 2016

In Maharashtra, relief likely for nearly 2 lakh illegal buildings

In the run-up to the Maharashtra assembly polls, the erstwhile Congress-NCP government had appointed a high-level panel, headed by former Mumbai civic chief SitaramKunte, on June 12, 2014, to suggest measures to deal with unauthorised structures in urban areas. The panel had also been asked to recommend steps to rein in illegal constructions in these pockets in future.

Based on the panel’s report and following suggestions from revenue and law and judiciary departments, the government Thursday decided to permit compounding of all irregular structures found indulging in zone and floor space index (FSI) violation within the permissible FSI by collecting a one-time penalty. The revenue department has linked the penalty to market rates. The sop won’t, however, be available on a carte blanche. Based on feedback from the law department, the government has decided that only those constructions certified as structurally sound would be eligible for this.

Source: The Indian Express, Friday 11 March 2016

Maharashtra housing regulator to be a reality by mid-April

The Maharashtra government will set up a housing regulatory authority by the end of March or before the conclusion of the ongoing Budget session on April 13. The government has zeroed in on the name of retired bureaucrat Gautam Chatterjee as the chairman of the authority. It has also issued the relevant rules for the effective implementation of the Maharashtra Housing (Regulation & Development) Act, 2012.

Source: Business Standard, Friday 11 March 2016

Realty developers start consolidating office assets

Realty developers that have commercial property that can be listed as real estate investment trusts (REITs), have started consolidating their office assets. However, the possibility of the first REIT hitting the market is still sometime away as issues such as state-level stamp duty and creating optimal structures to group assets into trusts may take time.

Source: The Times of India, Sunday 13 March 2016

News Source:

Times of India

Economic Times

Indian Express

Mumbai Mirror

Business Standard

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