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09/04/2016

10/03/2016

Good news for homebuyers and developers! Rajya Sabha passes Real Estate Regulatory Bill

10/03/2016

Realty bill in Rajya Sabha today after Naidu protests
Naidu had done the ground work on Tuesday evening for passage of the bill as he telephoned leaders of all major parties to seek their support for it

NEW DELHI: Parliamentary affairs minister M Venkaiah Naidu came in for a surprise in the Rajya Sabha on Wednesday when he was informed that the Real Estate (Development and Regulation) Bill, 2015 which was to be taken up for discussion and passage has been not enlisted in the supplementary business and would have to be deferred.

A furious Naidu who is also the urban development minister and is piloting the bill raised the issue in the Rajya Sabha and asked deputy Chairperson PJ Kurien why it is not being taken up. Not one to mince words, the minister said he was still the parliamentary affairs minister and it was he who was responsible for listing the bills for discussion and passage. He wondered how this change was made. Sources said the bill will now be taken up on Thursday.

Naidu had done the ground work on Tuesday evening for passage of the bill as he telephoned leaders of all major parties to seek their support for it. Naidu even wrote a letter to Rajya Sabha Chairman Hamid Ansari asking that the bill be taken up on March 8. Attempts to move the bill for discussion have not borne the desired result in the past as well.

Naidu's first attempt in this session was for getting it passed on March 4.

"The Real Estate (Development and Regulation) Bill was initially listed for Wednesday but was dropped at the last minute. The issue was broached even in the morning meeting of all important parties with Ansari and Kurien on Wednesday but finally dropped," a leader privy to the developments said. Naidu was not present in the meeting. Sources said the government was represented by Naidu's junior minister Mukhtar Abbas Naqvi.

While some blamed the Rajya Sabha secretariat for the mix-up, there are murmurs that some leaders in the government are not very keen on its passage. The bill aims at regulating the real estate sector by imposing controls on builders and safeguard the interest of the buyers. The bill was moved on December 22 and 23, 2015, during the winter session in the Rajya Sabha. Though it was sent to a standing committee earlier, the Rajya Sabha where the ruling NDA is in a minority prevailed over the government and sent it to a select committee of the House. This committee, headed by Anil Dave, has made suggestions for more amendments.

09/03/2016

Tax waiver for small flats may not boost affordable housing: Experts
The subsidy should be available to only those dwellings, which are less than 400 sq ft and cost no more than Rs 5,000 a sq ft
MUMBAI: The 100% tax waiver announced in the Union Budget on "small flats" may not necessarily give impetus to encourage affordable housing, said experts in the city.

"Why should a Bentley car manufacturer make a vehicle to compete with Nano? Or a luxury-hotel chain construct a small boarding lodge? Similarly, it is not a private developer's responsibility to provide affordable houses and they will never do it because their clientele is not more than 5% of the population," said an expert.

They were reacting to a TOI report on how the Budget announcement last week, offering 100% tax waiver on profits for builders constructing small flats would be just an "eyewash". However, the announcement by Union finance minister Arun Jaitley was silent on how much price the builder can charge for the small-sized flats.

TOI then gave an illustrative example of how a builder could construct 30 sq m flats, in a prime area like Nepean Sea Road in south Mumbai, and charge Rs 70,000 a sq ft for it. "The intentions of the government are clear. It is shying away from resolving the basic right of a common man to have a simple roof over his head," said architect and civic activist Nitin Killawala.

Ashok Datar of the Mumbai Environmental Social Network said the subsidy should be available to only those dwellings, which are less than 400 sq ft and cost no more than Rs 5,000 a sq ft. "The government can provide interest-free or low-interest loans or tax benefits to anyone who invests in such dwellings to be rented. The rent should not be more than Rs 8,000 a month,'' said Datar. However, developer Rajesh Doshi said the new law regarding small flats may not be applicable to general builders, but on for affordable projects in partnership with housing bodies likes Mhada. "We should wait for the fine print," he said.

Doshi said the customer too would benefit because the service tax, which will now be waived, was collected from the flat buyer. Another industry source said the tax exemptions will encourage construction of smaller flats for the lower-middle class. These flats can be rented out to students etc. "To my mind it's not a bad provision. There are built-in safeguards already. And Minimum Alternate Tax provisions of income tax still apply to such projects,'' he said. But critics warned such tax benefits will allow unscrupulous builders to start making small apartments and then selling combined flats in posh areas.

08/03/2016

Real Estate Bill to be reality in Budget session itself: Venkiah Naidu
Last week, the Congress wrote to Prime Minister Narendra Modi and Naidu, asking them to pursue the bill passed in the first leg of Budget session of Parliament
GURGAON: Urban Development Minister Venkiah Naidu today expressed confidence that the Real Estate Bill will become a "reality" during the ongoing Budget session of Parliament.

"Real Estate Bill is going to be a reality in this Budget session itself. I am holding discussion with all stakeholders," he informed domestic and global investors at the 'Happening Haryana' conclave here.

Stressing that the law would be a "regulation and not strangulation", he said, "nobody should worry except the fly-by-night operators".

"We are also working on ease of doing business and ease of approval and permission. We have got positive signals from all parties," the Minister said.

The Real Estate Bill is pending in Parliament.

Last week, the Congress wrote to Prime Minister Narendra Modi and Naidu, asking them to pursue the bill passed in the first leg of Budget session of Parliament.

Real Estate (Regulation and Development) Bill was introduced in Rajya Sabha in 2013. It was referred to the Standing Committee which submitted its report in February, 2014. After the NDA government was formed, the bill was again referred to a Select Committee of Rajya Sabha, which submitted its report on July 30 last year.

The proposed real estate law is aimed at protecting the interest of the buyers and sellers.

The Cabinet had in December 2015 cleared 20 amendments to the bill which seek to regulate transaction between buyers and promoters of residential real estate projects by establishing state-level regulatory authorities.

Naidu also assured all help to Haryana for infrastructure development in the state.

05/03/2016

GOOD NEWS FOR HOME BUYERS.....

The Real Estate (Regulation and Development) Bill seeks to protect homebuyers as well as help boost investments in the real estate industry. In December last year, the Union cabinet had approved 20 major amendments to the bill based on the recommendations of a Rajya Sabha committee that examined the bill, which has been pending in the upper house of Parliament.

Upadhyay said the urban development minister told them the government is keen to pass the bill in the ongoing session and it will list the bill next Tuesday.

05/03/2016

Provide clear definition of affordable housing, remove tax anomalies: CREDAI to govt

In a meeting with urban development minister Venkaiah Naidu, CREDAI recommended that affordable housing should be defined as units up to 60 sq metres in metros and 90 sq metres in non-metros
NEW DELHI: Real estate industry body CREDAI on Friday made a slew of recommendations to the government, including providing a clear definition of affordable housing and removing tax anomalies. These, they said, would optimise the benefits accruing from announcements on housing in the union budget.

In a meeting with urban development minister Venkaiah Naidu, a CREDAI delegation led by president Getamber Anand, president elect Jaxay Shah, secretary Boman Irani and treasurer Shekhar Patel recommended that affordable housing should be defined as units up to 60 sq metres in metros and 90 sq metres in non-metros.

The realtors' body also said that exemption from service tax should be extended to construction of affordable houses up to 90 sq metres under any scheme of the central or state government including PPP schemes based on the above definition of affordable housing.

CREDAI has also asked the government to increase the limit for deduction of interest under section 24(b) and 80C by an additional Rs 1 lakh per annum.

"After a long time, the Union Budget has brought positive announcements for the home buyers. This is a reflection of the changing sentiment in the industry," said Anand, adding, "CREDAI would like to extend its deepest appreciations to Shri Arun Jaitley and Shri M. Venkaiah Naidu for their efforts towards housing sector. This has renewed the industry's confidence and commitment to achieve PM's vision of Housing for All."

Some of the anomalies in the Income Tax law which are limiting investments into housing sector according to the realtors' body are property transactions are being taxed at the guideline values Under Section 43CA where as the market price is much lower, Joint Development Agreements are being taxed as though income accrues at the time the agreement is entered into.

Also Under Section 22 applicable to taxation of house property on the basis of Annual Letting Value, property which is held as inventory by developers is also being taxed.

04/03/2016

1,200 urban poor provided housing loan under Pradhan Mantri Awas Yojana

Under Credit Linked Subsidy Scheme, 6.50 per cent interest subsidy is given to urban beneficiaries belonging to the Economically Weaker Section and Low Income Group on a loan of up to Rs 6 lakh for a tenure of 15 years for acquisition, construction and extension of house
NEW DELHI: Housing loans of Rs 72.86 crore have been disbursed to 1,200 beneficiaries in 21 states under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana, Rajya Sabha was informed today.

In a written reply, Minister of State for Housing and Urban Poverty Alleviation Babul Supriyo said housing loans so far disbursed by banks benefited about 1,200 people with a total interest subsidy of about Rs 27 crore.

Under Credit Linked Subsidy Scheme, 6.50 per cent interest subsidy is given to urban beneficiaries belonging to the Economically Weaker Section and Low Income Group on a loan of up to Rs 6 lakh for a tenure of 15 years for acquisition, construction and extension of house.

In Maharashtra, Rs 36.11 crore was disbursed under the scheme, followed by Gujarat Rs 9.48 crore, Tamil Nadu Rs 6.64 crore, Madhya Pradesh Rs 3.52 crore, Uttar Pradesh Rs 2.58 crore, Rajasthan Rs 2.30 crore, Delhi Rs 2.26 crore, West Bengal Rs 1.92 crore, Chhattisgarh Rs 1.51 crore and Andhra Pradesh Rs 1.45 crore.

To get details and benefitted about this scheme call to 9372799777, for Aurangabad, Varad property management services.

04/03/2016

Rahul Gandhi assures home buyers of a strong Real Estate bill
Noting that Real Estate Regulatory Authority Bill was introduced by Congress in 2013, he said he would urge govt to bring the Bill in the House at the earliest.

NEW DELHI: Congress Vice President Rahul Gandhi on Thursday assured the home buyers that his party was committed to a strong Real Estate Bill to protect their interests and would ask the government to bring it in Parliament at the earliest.

In a series of tweets, Rahul said: "Met representatives of home buyers from across the country earlier today".

He said he assured them that is fully committed to a strong Real Estate Bill to protect them.

Noting that Real Estate Regulatory Authority (RERA) Bill was introduced by Congress in 2013, he said he would urge Government to bring the Bill in the House at the earliest.

04/03/2016

Pune builders to approach govt for affordable housing push
The Pune chapter of the Credai would request the government to make two-three changes and seek clarifications on a few things

PUNE: Housing developers would soon write to the government seeking further exemptions and clarifications on the affordable housing announcements made by Union finance Minister Arun Jaitley in his Budget speech.

The Pune chapter of the Confederation of Real Estate Developers' Associations of India (Credai) said it would request the government to make two-three changes and seek clarifications on a few things. The body would submit its memorandum to the government in the next few days. It is talking to other Credai chapters to make a joint representation.

"We want the government to give us five-six years to complete projects from the date of approval. The proposed period of three years is insufficient for large projects (say about 1,000 flats)," said Shantilal Kataria, the president of Credai-Pune Metro. "Besides income tax exemption, we will urge the government to remove minimum alternate tax."

He said the state government must give the house purchaser exemption from stamp duty, registration and value added tax added for the affordable housing to be successful.

According to the Pradhan Mantri Awas Yojana (PMAY), any unit up to 323sqft in metro cities and up to 646sqft in non-metro cities qualifies as affordable housing. There is no cost criterion for such projects.

"With a view to incentivise affordable housing sector as a part of larger objective of 'Housing for All', it is proposed to amend the Income Tax Act so as to provide for 100% deduction of profits of an assessee developing and building affordable housing projects," the finance minister said in his budget speech. He, however, said such projects must be within 25km of municipal limits in metros and specified no distance criterion for non-metros.

While seeking clarification on this, the body will ask to increase the geographical area.

"There is no land in municipal limits in metro and large cities. So, in metro cities like Mumbai, the radius should be increased to about 100km and in non-metros, it should include the entire metropolitan region, not just the municipal limits," said Sachin Kulkarni, the managing director of Pune-based affordable housing project Vastushodh.

The government also said it would exempt the 5.6% service tax for projects built in "partnership". "It is proposed to exempt service tax on construction of affordable houses up to 60sqm under any scheme of the central or the state government, including PPP Schemes," Jaitley said.

According to Kulkarni, there is no concept yet of partnership with the government in Maharashtra, as well as in other states like Rajasthan. "So, we hope the government gives service tax exemption to all realtors building and selling houses less than 646 sqft in size," Kulkarni said.

04/03/2016

Mumbai home renting rules: Singles not allowed

From partying restrictions to insisting on getting parents to live with them, singles in the maximum city face stringent regulations when it comes to finding an accommodation

When 28-year-old advertising professional Abdul Khamiz moved from Delhi to Mumbai four months ago, he had a harrowing time looking out for a 1BHK in the western suburbs. He says, "I would have probably looked at about 25 housing societies in areas like Malad, Borivali and Vile Parle, but no one wanted a bachelor as their tenant. Finally, I found a place in Bandra where singles can still get an accommodation, though the rents are really steep."

No boyfriends please!
Twenty eight-year-old content writer Akanksha Sehgal had to face a round of questioning from not only the secretary of the housing society in Powai but also the neighbours. She says, "After much hunting, I settled for an old housing complex in Powai, close to Chandivali. However, the secretary and a few neighbours sat me down before handing out the keys and grilled me on various topics Do I work late? Will my parents visit me often? They even went a step further and asked me if I had a boyfriend who would spend 'nights' at my place! I was taken aback but since I had already wasted a lot of time looking out for a place, I needed to close this deal soon."

No partying, no calling friends over
Much to Wriddh Mishra's surprise, the landlord of his house in Santacruz East strictly told him not to get friends (especially females) into the society. He says, "Our landlord just popped in one Saturday evening and casually told us he'd dropped in to check whether we had called in some friends. When I asked him what's wrong in calling them over, he said that it's not acceptable and the society can take strict action against us." your parents need to live with you While some societies do agree on renting out to singles, they make it almost mandatory to have your parents or guardians live with you. Deeya Saud, a 26-year-old banker, says, "When I took up a place in Goregaon, the landlord spelt it out in bold that he would give me the flat on rent only if my parents would live with me. I had been house hunting for almost a month and couldn't carry on with this any longer. So, my parents had to make arrangements and come from my hometown in Assam and live with me for a few months until the landlord was assured I was a genuine tenant. He did not even try to understand that it would inconvenience my parents, who had already spoken to him before the flat was rented out to me. He just wanted to be assured that my parents and I were the actual people who would live there."

Single parents face similar situation
There are many single parents in the city as well who have been forced to move out of their rented accommodation because they've been living without their spouse. 34-year-old single mother Anjali Ved, who's currently staying in Santacruz with her seven-year-old daughter, was asked to leave her previous apartment because she separated from her husband. She says, "I had been living in that house for about two years. The day my landlady got to know that I am a single parent, she sent out a month's notice to vacate. Despite my repeated requests and reasoning, she did not budge."

Housing societies reject the noc if landlords rent out to singles
As much as singles complain about housing woes in the city, it seems that these regulations are in place because landlords in the past have faced severe legal consequences due to disturbance and nuisance caused by singles. Anand Tolani, a central suburb-based broker, says, "There have been many instances in the past where singles have created a ruckus and proved to be a nuisance to neighbours, because of which the landlord has landed in legal soup. There have also been times when a landlord has lost out on the NOC (No Objection Certificate), and end up paying the society a huge amount to retrieve it."

Don't get us tenants until you know them personally
Many societies ask the landlord if the person they are renting the house out to is known to them. Broker Yash Changlani says, "In turn, the landlords have started asking us to get tenants whom we know personally. Also, our business has also started to suffer because most house owners now post about their requirements online and on social media."

There's No law against renting out to singles
How can accommodation be denied on the basis of your marital status? That's the question singles are asking the house owners. Prajakta Nikam, a lawyer, says, "The state law does not have any such rule where singles cannot rent a property. It is up to the landlord to decide who he wants as his tenant. Unfortunately, the law cannot intervene in this case. There have been instances in the past where landlords have run into trouble because of their tenants (mostly bachelors) and that is probably the reason why they do not wish to rent out their houses to those who are not married and would reside by themselves."

03/03/2016

Budget 2016: Digitization of land as 'welcome' move in India

The Finance Minister Arun Jaitley has also announced digitization of land records in the Budget 2016 - 17 on February 29.

Uday Wavikar, Vice President of the Consumer Court Bar Association told that the Finance Minister really needs an applaud for digitization of land records. He calls it as a welcome move in India as earlier, people had access of clear titles of land including a number of mortgages digitally in abroad. The Government has allocated an amount of Rs. 150 crore for digitizing of land records in the Budget. The main question of uncertainty and concern remains the implementation of the process as the modernization of land records is critical. The contract should be given to renowned agencies rather than government computer agencies for accurate programming.

The digitization of land records will absolutely benefit the homebuyers. The title remains a concern in big cities like Mumbai, Chennai and Bengaluru. He suggested that mortgages should be included in the process. Mortgages of properties have to be linked to various banks for authentication. A larger budget, outsourcing, implementation, accurate programming and up gradation of data are required for proper functioning in the long run. He also added that the move is the need of the hour and is likely to give benefits to the common man across the country.