Tag Archives: ASSOCHAM

ASSOCHAM calls for homebuyers to be treated at par with banks

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News Point: Industry body ASSOCHAM bats for the legitimate rights of Jaypee Group homebuyers.  

Jaypee Homebuyers Protest, Jaypee homebuyers, Options for Jaypee homebuyers, Legal remedies for Jaypee homebuyers, Homebuyers victim of Jaypee, Delhi NCR property market fraud, India real estate news, Real estate news India, Indian property market, Track2Media Research, Track2RealtyASSOCHAM has urged the Government, National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India to treat homebuyers in real estate projects at par, if not above banks in the pecking order, by providing a separate carve-out for those stuck in the incomplete construction, and any legal hurdle should be immediately removed, by a Presidential Ordinance, if need be.

“Should a need arise, we request the government to mull over issuing a Presidential Ordinance and amend the Insolvency and Bankruptcy Code (IBC) and protect the rights and interest of home buyers in log- jammed projects at all costs. After all, the entire real estate sector which is the largest generator of employment is based on the trust of the consumers/home buyers, which is at an all-time low now. Under no circumstances, this trust be shattered further and all out efforts should be made to revive the J P Infra project which has 32,000 buyers or at least one lakh family members,  most of whom are middle and lower middle class salary earners,” ASSOCHAM Secretary General D S Rawat said in a statement.

He said it appears the situation arising out of the JP Infra may not have been envisaged and thought over at the time of drafting of the IBC law. The business to consumer companies with wide base of stakeholders involve a very large public interest which, if not handled well, can have cascading effect on the entire business and market sentiment. Once shattered, it would take years to re-build the confidence at a huge economic cost.

“It cannot a case of only protecting the lenders (secured creditors), going by the book. Little do a wider section of the banks realise that if a real estate project fails, the secured banker may have protected its interest, but the banks which have extended home loans to thousands of buyers in the same project,  also face risk of EMI default. Let us not have a law following only the letter and not the spirit. The definition of the non-performing assets (NPAs) be widened to include not only the NPAs of the banks but also of the home buyers”, the Chamber Secretary General said.

The realty sector has been worst hit by a high level corporate debt and has been a victim of the worst kind of unethical practices at the state and local levels. Besides, the decisions like protecting bird sanctuaries in densely populated and metro cities like the Delhi NCR are totally out of sync with the ground reality and have damaged the cause of consumers and the industry.

“Hopefully, the RERA would help, but the big problem lies with the projects which are halted because of liquidity problem. The government needs to step in by way of easing Floor Area Ratio, the tough lien conditions on land lease and the state regulatory authorities should work closely with the stalled projects. New equity investors be encouraged by relaxing the merger and acquisition norms, speeding up the legal requirements etc.”

If the housing for all target, avowed objective of the government has to be achieved, a pragmatic approach is needed to resolve the present crisis in the real estate sector, the chamber said.

Centre is in the process of finalising 100 smart cities’ contours: Secretary, MoUD

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ASSOCHAM, Venkaiah Naidu, Union Government, Union Urban Development Minister, Indian real estate news, Indian realty news, India property market, Investment in real estate, Track2Media Research, Track2RealtyTrack2Realty-Agencies: The Centre is in the advance stage of finalising the contours of its ambitious 100 smart cities’ project and has sought comments and suggestions from the private sector including the academia and the industry, a top Urban Development Ministry official said at an ASSOCHAM event held in New Delhi on Nov 12, Wednesday.

“We have already put up a draft concept paper on our website and once we finalise the contours we will go to the EFC (Expenditure Finance Committee) and to the Cabinet,” said Shankar Aggarwal, secretary, Ministry of Urban Development while inaugurating a national conference on ‘Opportunities & Challenges@100 Smart Cities,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“It will take a little bit of more time as it is a huge task and we got to have wider consultation with everyone, all stakeholders have to be consulted and we are in the process of doing that,” said Aggarwal.

“We are in the process of identifying those 100 smart cities in consultation with their state governments,” he added. “We have got to focus on satellite towns of mega cities as well as the mid-size towns.”

The top Urban Development Ministry official said that the Government wants to achieve 100 per cent reliable and robust connectivity while taking the advantage of information and communication technology (ICT) under smart cities.

“The idea is to get 24×7 electricity and water supply, cyber connectivity and urban mobility with a very good quality of public transport system.”

Talking about the role of private sector in developing smart cities across India, the secretary said “Almost 98 per cent work has to be done by the private sector, academia and the industry while only two per cent i.e. the glue has to come from the Government of India.”

“We will be very happy to get your (private sector) comments and suggestions and we are open to all kinds of ideas as this journey can be travelled only with your assistance and support,” added Aggarwal.

Assuring of the Government support to the private sector, he said “I assure you that we will stand by you, we will strengthen your hand and ensure that this phase of transformation is successful and we are able to bring happiness and prosperity across India.”

On the issue of Central Government’s plan to build office complex in Lutyens’ Bungalow Zone, the MoUD secretary informed, “We are identifying the area within the Lutyens’ Bungalow zone and outside it for constructing some kind of a central place for all government meetings.”

Talking about the office-space requirement, Mr Aggarwal said “We will be requiring something like 100 acres of land as now we have been able to get the requirements of all the departments.”

Venkaiah Naidu asks real estate sector for ‘out of box’ ideas

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ASSOCHAM, Venkaiah Naidu, Union Government, Union Urban Development Minister, Indian real estate news, Indian realty news, India property market, Investment in real estate, Track2Media Research, Track2RealtyTrack2Realty-Agencies: Seeking ‘out of the box’ ideas from the real estate sector for affordable housing, the Government on Wednesday, Oct 1, said it will consider recommendations for investing insurance and pension funds in the sector.

“Real estate sector also has to work with out of box ideas to make a mark in affordable housing segment. This sector also has huge demand and opportunities,” Urban Development and Housing and Poverty Alleviation Minister Venkaiah Naidu said.

He was speaking at a real estate conference organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Recommendation pertaining to allowing insurance and pension funds to invest in real estate sector will also be taken up in due course,” Naidu said.

The NDA government has promised to provide housing for all by 2022.

Naidu said providing housing for all is a big challenge and the government needs public and private participation to meet the target. He also assured the industry that his ministry wants that affordable housing should be included in the priority sector lending by banks.

“We are pursuing with Finance Ministry regarding providing a sub-window of at least three per cent for affordable housing sector within 40 per cent priority sector lending allocation,” the Minister said.

He further said the need for ‘single window clearance’ is also being explored. “We are discussing how far it is possible with other ministries and state governments and also to give infrastructure status to housing sector,” Naidu said.

Responding to grievances of those in the real estate sector over delay in getting clearances including environment, Naidu said he is hopeful of finding a solution to this.

“As far as environment clearance is concerned, which is one of the reasons for long delays, I had discussion with the Environment Ministry and we hope to find some solution to this.”

“Once the Urban Development authority’s plan has been approved then there should not be any need for individuals to go for clearance for each and every project. We are considering the suggestion positively,” Naidu said.

Naidu said efforts are on to arrive at a consensus on the Real Estate Bill and it will be introduced in the next session of Parliament.

“We are proposing to bring the Real Estate (Regulation and Development) Bill in the next session. We are holding discussion with various stakeholders and consumer forums to arrive at a consensus. We will be holding a final round of discussion before taking it to Parliament,” he said.

On the proposed ‘Smart Cities’, Naidu said his ministry is in the advance stage of finalisation of the contours of the project and hopes to finalise it and take it to the cabinet by November.

He, however, said the municipal bodies have to approve the reforms agenda to become part of the Smart City concept.

“You have to first identify the cities and city municipal bodies have to approve the reforms agenda to participate the Smart City concept. State governments also must stand by them and then we move forward. We also need to prepare detail project report (DPR) and then move forward,” he said.

Acknowledging a great demand for Smart city plan among various cities, Naidu said, “Cities cannot be constructed overnight. There is so much demand for smart cities and it has become flavour of the season. The process is on we are in advanced stage of finalisation of the various contours of the smart city concept.”

On the government’s ambitious Swachh Bharat Mission, he said sanitation and cleanliness should be part of the curriculum in schools to inculcate the idea at an early stage.

He has asked ASSOCHAM to constitute an award for maintaining cleanliness at offices.

Naidu said a high level committee is being formed to suggest ways for unclogging Delhi because the capital is heavily congested.

We are discussing it with various ministries including Defence, Railways, NHAI, Delhi Government and all have been asked to sit together on this. The committee has been asked to submit report in 45 days about ways and means for unclogging Delhi.”

ASSOCHAM suggests government for REIT & REMF

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By: Jaswinder Singh

india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, DLF, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, K.P. Singh, Rajiv Singh, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, Lavasa, gurgaon real estate, real estate gurgaon, gurgaon property, realty gurgaon, property gurgaon, gurgaon realty, FICCI, CII, NAREDCO, CREDAI, ASSOCHAMThe Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested the government to introduce Real Estate Investment Trust and Real Estate Mutual Fund to enable investors to own a diversified portfolio of professionally managed assets in the real estate sector. In a note submitted to the government, the Chamber said that the Indian Real estate sector currently lacks any monetization vehicle for capital intensive verticals such as commercial offices and retail malls. Further, since the funding requirements for real estate projects are significant, broad based portfolio investments by individual investors is not feasible. A possible solution could be created in the form of REIT and REMF.

These vehicles are primarily characterized by their investment in real estate assets as well as limited liability for unit holders and they generally engage in professional real estate management as well. REITs have enabled small investors in most developed economies to hold a diversified portfolio of real estate assets which would otherwise not have been feasible. USA, Australia, Japan and Singapore are the amongst the more developed REIT / REMF markets, with the necessary regulatory framework in place and significant representation of such listed instruments on their respective stock markets.

ASSOCHAM has also suggested the government to make it mandatory for developers to provide Home Information Packs to their customers. These packs carry copies of documents related to clearances, deals, valuations, development plans, implementation milestones, and impediments, if any. Such initiatives can also act as confidence building measures, especially in India where real estate transactions are enshrouded by various surprises, controversies, disputes, and a subsequent loss of satisfaction and trust.

The Chamber said considering the magnitude of socio-economic value the real estate industry creates for the country, India’s vision for 2020 needs to be closely linked with our vision for this industry. A more prosperous India in 2020 will be characterized by a better-organised real estate industry which is transparent, efficient yet well-regulated and focused on sustainable development.

The prudent fiscal measures taken by the Reserve Bank of India the strength of our domestic demand and the restructuring measures taken by the real estate development community helped the industry reposition its focus and ride through a period of unprecedented turbulence. However, the fruits of growth have to also reach the common man in semi-urban and rural areas, and not just be restricted to a few big cities. As a country, our needs are changing. Looking at the demographic changes, it is a challenge to handle the escalating pressure on our current infrastructure and build new infrastructure to keep pace with our urbanization and population growth.

Setting up of a regulatory authority and an appellate tribunal will help organizing the industry, but only if they are efficient and enablers for the industry’s progress. In the developed economies, government regulations promote planned development without acting as hindrance. A real estate regulatory body (called real estate commission in some countries) licenses developers, agents and price evaluators, on the basis of their competence gauged through common qualifying exams.