The National Real Estate Development Council (NAREDCO) has asked the government to bring flexibility in the structure of the real estate sector related to taxation and stress on rental housing. In the budget of 2018-19, NREDCO has demanded the government to increase the supply of items related to construction for the builders and increase purchasing power of those who buy the house. Along with this, National Real Estate Development Council (NREDCO) has emphasized the need to emphasize rental housing.
The National Real Estate Development Council (NAREDCO)President Mr Rajiv Talwar said that the measures for strengthening the real estate sector through budget can be easily done. He said that he wants the builder to be comfortable and buyer can buy houses at low prices. With the development of real estate sector, there will be an increase in Gross Domestic Product.
He said that his organization has demanded to reduce the rates of commodity and service tax in the real estate sector, which would reduce the prices of houses and people get motivated to buy their houses. He said that Prime Minister’s ‘Affordable Housing for All’ scheme should be encouraged. For this, a mechanism should be developed so that the builders can easily construct houses. This plan should not be construed to excessive conditions. He said that NREDCO has put his demands in front of the government and hopefully Finance Minister Mr ArunJaitley will definitely give him a medal on the budget he will make on February 1.
The Ministry of Housing and Urban Affairs has sent the demand to the Finance Ministry to increase the budget allocation to three times this year to achieve the target of constructing more than 10 million housing under ‘Housing for all’ scheme in the next 5 years. The budget demand proposal sent to the Finance Ministry has been emphasized only on the housing scheme for everyone.
According to Ministry sources, proposed demand for allotment of about 20,000 crores has been made in the financial year 2018-19 for ‘Mission for all’ under the Prime Minister’s Housing Scheme. It may be mentioned that in the current financial year 2017-18, the Finance Ministry had allocated Rs 6200 crores for this scheme. According to sources, in the initial round of deliberations on budgetary allocation, the Finance Ministry had proposed to allocate 11 thousand crore rupees in this item, but the Ministry of Housing and Urban Development has planned to construct 12 million cheap houses by 2022 under this scheme. Referring to the goal of this, the budget has refused to compromise on the budget allocation.
Budget allocated at least Rs. 17 thousand crore
The Ministry has argued that in view of the high priority of the Prime Minister to provide home to all homeless families in the country, the Finance Ministry should allocate a minimum of Rs 17 thousand crore in the budget for this scheme. Housing and Urban Development Ministry will not be satisfied on the allotment of funds. The Ministry has recently decided to organize international competition to speed up the Prime Minister’s housing scheme.
Only 2.91 lakh houses so far
So far only 2.91 lakh houses have been created in the ‘Home for all’ campaign launched four years ago under the Prime Minister’s Housing Scheme. According to official data, the Ministry has released Rs 11,899 crore under the scheme from the financial year 2014-15 to 2017-18. However, after the slow pace of construction of houses in the scheme, the construction of houses has increased in the last two years.
Last year, due to the demonitization, the Real Estate Regulatory Act (RERA) and GST, the value of residential homes has been declining. According to the report of Knightfrank India Real Estate, the prices of residential homes in cities across the country have dropped by an average of 3 per cent.
Sales of homes in Bengaluru, Delhi-NCR and Chennai have decreased by 26 percent, 6 percent and 20 per cent, respectively. However, there has been a slight increase in the purchasing of homes in Mumbai and Pune. According to the report, after the implementation of RERA in Maharashtra, the sale of houses in Mumbai and Pune has increased by 3 and 5 per cent respectively.
Due to lack of sale, there has been a decrease in the launch of new projects for residential homes. Last year, 56 per cent of Delhi-NCR and 41 per cent fall in Bangalore were seen in the launch of new projects. It has severely affected the real estate sector. According to property consultant Knightfrank India, only 37653 units can be sold in NCR last year.
Delhi NCR sales have seen a decline of 6 per cent. Because of this the prices of houses have reduced by 2 percent. According to the report, the share of cheap houses in new real estate projects has also increased rapidly.
In 2016, the share of cheap houses in the new project was 53 percent, which increased to 83 percent in 2017. Developers are also focusing on homes priced at 50 lakhs. It is being reported that more projects of cheap houses were launched due to the subsidy and higher demand under the Prime Minister’s Housing Scheme.
Before granting permission to initiate action under the Bankruptcy Act against J.P. Associate Limited (JAL), the Supreme Court has asked how many of his projects are running in the country on Tuesday. The Supreme Court asked JP to give an affidavit that how many housing projects are going on in different parts of the country and what is their position at the moment. The construction work has been done in them.
At the same time, the Supreme Court has directed JP to deposit Rs 125 crore as soon as possible. It was also said that if JP fails to pay money, it will be considered as contempt of court, for which the people linked to him can be sent to Tihar.
Actually, this amount is a part of the two thousand crore rupees, which the Supreme Court had earlier given order to give. This amount will be returned to the people who buy house in the Society created by JP, who have not got the house yet. JP will be given Rs 125 crore by January 25.
The Supreme Court has also said that under the projects of JP Associate Limited (JAL), a separate portal should be started for those who buy the house so that all can be settled at the earliest. The SC will next hear the matter on February 5. Let us know that the Reserve Bank of India (RBI) had reached the Supreme Court on Monday against JP. Earlier, the news came that JP could sell five hotels and resorts to repay the loan. JP was expected to get 2,500 crores from that sale.
Enforcement Directorate (ED) has seized assets worth Rs 472 crores, including shares and immovable property in Australia, in connection with the Ponzi scheme scam of PACL (Pearl Group) of Nirmal Singh Bhangu. The ED has taken this action under the Prevention of Money Laundering Act (PMLA). ED has registered the criminal case in 2015 based on the key FIRagainst the Pearl Group, its directors and officers by CBI
According to ED, properties of PSCL that have been seized includes the property of Myarisorts Group 1 PTY Limited and Sanctuary Cove. PACL has launched a Pongi scheme through its 43 front companies between 2009 and 2014 and collected huge amount and invested Rs 650 crore in its group company PIPL. PIPL has invested it further.
PACL has to withdraw Rs 49,100 crore from five crore investors. It also includes the basic funding, returns and interest amount. It is known that in addition to the CBI and ED, SEBI is also investigating PACL. According to SEBI investigation, the group is accused of collecting huge amount in the name of Ponzi scheme for real estate projects from the investors. For this scheme, he did not seek permission from any authority. According to the sources of CBI that during different rsids and searches at different offices of Pearl Group number of documents has recovered of benami properties of worth crore in India and abroad.
According to the sources, ED’s probe shows that the Pearl Group has issued the fake land allotment letters to the investors. Whereas, in Ponzi scheme, the company has given huge amount of interest to the investors from the money collected from other investors.
Enforcement Directorate (ED) has said that it has seized 348 acres of land in Madhya Pradesh in connection with the investigation of money laundering in the coal block allocation scam. This land is about Rs 4.53 crore. In this regard, the Enforcement Directorate (ED)has given the primary order to seize the land situated in Narsinghpur district under the Money Laundering Prevention Act. He said that this land belongs to BLA Industries Pvt.
The Directorate had filed a criminal case against the company, its managing director Mr Anup Agarwal and some government employees some years ago on the basis of CBI’s (Central Bureau of Investigation) FIR. Enforcement Directorate (ED)said that the CBI’s (Central Bureau of Investigation)FIR had said that Gotitoria East and Gotitoria West coal block in Mohpani coal mine in Narsinghpur district was allocated for use in power plants. However, the plant could not come into existence ever and government officials had given the right to sell coal to the company by changing the condition of the use of coal.
The investigation agency has said that the crime was earned from the creation of illegal mining and the creation of shares of coal. For this, money was moved differently through various banks and in the end, fixed assets were bought from it. Among them, Madhya Pradesh has 348.34 acres of land. Its value is estimated at Rs 4.53 crore.
The real estate company, which is under debt pressure, is aiming to construct incomplete 24,000 flats in the noida and to provide consumers with the expenditure of around eight thousand crores to 2020. A senior company official informed about this news.
Company Advisor Mr Ajit Kumar said that the JP Group needs eight thousand crore rupees to complete the incomplete flat. Out of these, six thousand crores of rupees will be collected by the housing buyers while the provision of other two-and-a-half crore crores will be needed. The company started making 32 thousand flats in 2007 in Wish Town of Noida. So far, he has given eight thousand flats to the customers. Kumar said, “As per the order of Supreme Court and National Company Law Tribunal, we are trying to create 32 thousand units by 2020 and give them to the consumers.”
According to Mr Kumar, the company is collecting Rs 20 30 crores funds from the toll collection of Yamuna Expressway and the payment made by the home buyers every month. Through which the construction is going on in the Jaypee Wish Town of Noida.
In the Housing Society proposed by Yamuna Expressway, 1,400 investors had booked flat in 2012-13. Since then, 5 years have passed, but like all the NCR projects, it has also been stuck and investors are now required to prepare a legal battle for refund. These investors do not have the option of waiting for the flats to be ready as this project has never started and the builder has withdrawn.
We are talking about the Sun World Builder’s Project i.e. Vandita project. Nearly 39 buyers who have been tempted to flat in this society have now moved to the National Consumer Forum to get their money back. Buyers claims that this project of Sun World Builder, located in Sector 22 D at Yamuna Expressway in Greater Noida, was withdrawn by the builder last year, but no refund has been received so far. The cheques issued by the builder to the buyers for refunds have been bounced. Every investor is trapped between Rs 6.5 lakh (Rupees Six Lakhs and fifty thousand Only) and Rs 8.5 lakh (Rupees Eight Lakhs and fifty thousand Only). However, the developer says that he has returned his money to 75% of the buyers.
Bounced checks issued by promoter
The Yamuna Express-Way Industrial Development Authority says that SunWorld Builder purchased 104 acres of land in 2010 for Vandita Project and deposited Rs 100 crore for it. Sunworld says that only 65 per cent of the land needed was provided by the Yamuna Expressway Authority, which was also given in pieces, due to which the project did not get permissible.
Ministry of Housing and Urban Affairs approved the construction of 5.4 lakh houses and houses for the urban poor under the Prime Minister’s housing scheme today.According to an official statement released today, the construction of houses will cost Rs 31,003 crore. In which the assistance of Rs 8,107 crore will be given by the Center. Central Sanctioning and Monitoring Committee has approved the scheme in the 29th and said that the number of sanctioned houses has reached over 36 lakhs under Pradhan MantriAwasYojna (U). These houses will be built under the two components of Pradhan MantriAwasYojna (U) i.e.
Beneficiary Led Construction (BLC)
Affordable Housing in Partnership (AHP)
The PMAY scheme was launched on June 25, 2015 which is having the aim of reducing the gap of demand and supply of houses. The schemes is introduced in the urban areas and categorize with respect of economically weaker sections, and low and middle income groups. The main aim of the scheme is togive pucca home by 2022 and meet the target of ‘Housing for All’.
The following table below shows the figures of houses approved under the Beneficiary Led Construction (BLC) component of PMAY(U) in different states:
||Houses Sanctioned (Lakhs)
Whereas number of houses to be built under the Affordable Housing in Partnership (AHP), the other component of PMAY (U). The number of houses has been approved under this scheme in different states is given in the table below:
A deal worth Rs 9,000 crore has been completed with the promoters of real estate sector DLF promoter and Singapore government fund GIC. In this deal, he has sold 33.34 percent stake in the company’s rental unit DLF Cyber City Developers Limited (DCCDL) to GIC.
In the information given to the stock exchange, the company said that in this deal, the promoters got Rs 8,950 crore from GIC and Rs 1,600 crore from additional DCCDL (DLF Cyber City Developers Limited). They will use this amount to bridge the debt of DLF. At present, DLF has a debt burden of Rs 27,000 crore. Significantly, in August this year, the promoters of DLF had sold their full 40% stake in DCCDL(DLF Cyber City Developers Limited) for Rs 11,900 crore. In this, 33.34 percent was sold to GIC for 8900 crores. DCCDL (DLF Cyber City Developers Limited)had repurchased the rest stake of nearly Rs 3,000 crore.
DLF has filled the regulatory last night in which it has written that all the conditions given in the agreement has been fulfilled, further, all sale and purchase of the securities and other actions of closing has been completed on 26th December 2017.
“Accordingly, the company and the investor (GIC) now hold 66.66 per cent and 33.34 per cent of the paid-up equity capital in DCCDL(DLF Cyber City Developers Limited), respectively,” DLF said in the filing. As per the sources, in this deal DLF has received Rs 8950 crore and Rs 1600 crore from GIC and DCCDL (DLF Cyber City Developers Limited)respectively.