Tag Archives: land acquisition bill

Only half the battle won with Regulator Bill: Colliers

Posted on by Track2Realty

Finally, there is a ray of hope for the buyers who are marred by the delay in delivery of the projects or the delivered product not being as promised at the time of booking in terms of quality, specification and carpet area, etc.

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaThe Bill is expected to change the way the real estate sector operates in our country, aimed at greater accountability, disclosure norms, investor protection, and e-governance, facilitating transparent and efficient working in real estate by enforcing fair practices and accountability norms and fast tracking dispute resolution.

However, still much more needs to be achieved to make it a real win. This is just half the battle won as there is a bigger challenge ahead of implementing the same into the system, which is already there for so many years. Moreover, there are issues which are yet to be addressed to actually get the benefit of this bill, such as efficient approval process, land acquisitions implementation issues, etc.

Key clauses and their implication on the buyers and developers:

1.    Mandatory registration of project and threshold limit: There is a mandatory registration required for all real estate project ads measuring more than 500 sq mtr for any booking, selling, offer for sale, invitation of purchase in any manner. To make this requirement effective there is a provision of punishment for non-registration as penalty and if not paid within a certain time, then imprisonment of the promoter.

This clause will certainly reduce the risk of the buyer to a certain extent as now they will enter into a project only after it received initial approvals, however; the risk associated with completion is still there as a majority of projects currently are stuck at completion stage. Noida is a classic example of this.

 2.    Mandatory requirement to keep 70% of project proceedings into a separate account: The Bill required the developer to compulsorily deposit at least 70% of the amount realised from the buyers in to the particular project account. Punishment of non-compliance will lead to a penalty. The intent is noble, as this will push developer to use the project proceeds into the same project.

 3.    Real Estate agents under the purview of the regulation: The Bill requires the registration of the real estate agent for selling a project. The registration would be granted by the authority on payment of prescribed fee and for limited time period.  The functions of real estate agent is also defined in the bill such as maintaining books of account, records, facilitation of all the documents, etc. This is much required, but at the same time we also need formal education for these agents. There are institutes like RICS which are providing specialised education, but we need much more of such kind.

 4.    Defined functions and duties of promoters and Allottees: The function and duties of promoters are defined in the bill, including quarterly update, registration details, varsity of the advertisement or prospectus, etc. No deposit or advance is permitted to the promoter without first entering into an agreement of sale. The promoter needs to adhere to the approved plan and project specifications and facilitate the execution of registered conveyance deed.

The Bill provides right of information relating to the site and layout plans along with the specification, stage wise time schedule, claim possession and claim of refund in case of default. The Bill also made provision of payment of interest by allottees in case of default in scheduled payment.

 5.    Formation of Real Estate Appellate Tribunal: The Bill has a provision to establish real estate appellate tribunal which needs to fast track dispute resolution as there is a provision that Appellate Tribunals be required to adjudicate cases in 60 days.  Even the Consumers can approach 644 consumer courts available at the district level.

In conclusion, this is the approach in the right direction but needs an effective implementation plan and an effective approval mechanism. Single window clearance system is what the industry is demanding for since a long time which is the need of the hour.


Government to provide interest subvention for housing loans

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The government has said it will offer interest subvention on housing loans to make it more affordable for the poorer sections of the society to own a house.

“We are coming out with an interest subvention scheme for the housing sector for the economically weaker section and lower income group people,” said Housing and Urban Poverty Alleviation Minister M. Venkaiah Naidu at an industry event in New Delhi.

As per government data, the housing shortfall is 18.78 million out of which more than 90 percent is in the LIG segment.The projected housing shortage of 30 million units is predicted by 2022, the government requires funding of Rs. 22.50 lakh crore in overcoming the house shortage during the period.

According to Naidu, who was addressing the ninth conclave of the confederation of Real Estate Developers’ Association of India (CREDAI), the government has incorporated all the inputs from builders, consumers and other stake holders in the new real estate regulation and development bill.

“We have taken the views of various stakeholders including real estate sector. Then we will go to the cabinet shortly. Once the cabinet approves, I am hoping we will get early clearance,” Naidu said regarding the approval procedure of the new bill.

“If not this session, at least by the budget session the real estate development and regulation bill will be a reality.”

C. Shekar Reddy, national president, CREDAI recommended to the government that units under the area of 40 sq mts be treated as national infrastructure.

Reddy further said that housing is the only sector that attracts multiple taxation. Presently the total tax to be paid is 30-40 percent.

“The status of priority sector lending to the affordable housing segment (already announced by RBI for affordable housing) is a needed decision, yet to be implemented,” Reddy said.


Realty hopes new governance to end policy logjam & funding crunch

Posted on by Track2Realty

By: Ravi Sinha

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty Exclusive: To say that the Indian business community in general and the real estate developers in particular desperately wanted a change in the business outlook and hence change in the government would be stating the obvious. For the last couple of years they were cribbing about policy paralysis, inflation, and negative sentiments, and hence the developers are visibly elated with the change of guard at the Centre.

The verdict of Lok Sabha polls 2014 has now given them reasons to look up to the new government at the centre which has got a huge mandate on the promises of curbing inflation and leading to economic turnaround. The D-Day on May 16 has indeed changed the mood and outlook of the business community across the country, and the developers across the country are counting on the blessings to come.

The optimism of the real estate sector is not based on sheer emotions, but the grounded reality and realisation that if the new government has to do a turnaround of the economy, then housing sector has to play a key role. Moreover, some of the key pending policy decisions like the implementation of Real Estate Investment Trust (REIT) also promises to not only revitalise the commercial real estate but also open the floodgates of funding opportunities. There is a growing realisation within the built environment that the new style of governance will meet the twin objective of the sector-bring an end to policy logjam and deal with the funding issues for the developers.

The developers are so positive with the prospects of the sector with new government at the centre that some of them are even looking up to the heydays of 2007-08. The real estate, like the rest of the business community, has reacted positively to the news of NDA forming the next government. This sentiment is all visible on the market dynamics as well. Sensex has already breached the 25,000 mark and the Nifty breaching the 7500 mark is seen as the confidence of the investors in the new government.

Anshul Jain, Chief Executive, DTZ India asserts that with a majority stake in the government, it is expected that the Parliament will function smoothly with lesser number of walk-outs by the opposition. This will translate in better decision making and will improve the sovereign ratings of India which will be good to attract foreign investors to India Inc. All this is good news for India’s real estate business as demand is expected to pick up in the latter half of this year.

“The corporate real estate alone could clock in 10 million sq ft of demand by end of 2015. Next 5–6 quarters is expected to be the game changers. Availability of funds will ease and interest rates are expected to come down as inflation cools. This will have a direct impact on the supply side of the real estate. With demand improving, the current stock of office space might not be sufficient to cater to the demand and hence, rentals could be under upward pressure. With the era of coalition government over, we hope that the term ‘policy paralysis’ is a thing of the past now,” says Jain.

Anshuman Magazine, Chairman & Managing Director, CBRE South Asia also vouches that the election results will certainly improve sentiment in the real estate market. He says the formation of a stable government not dependent on coalition partners will hopefully mean faster decision making and economic reforms.

“If GDP growth picks up, one of the early beneficiaries would be the real estate industry. However, the economic fundamentals have to be tackled; infrastructure projects implemented with a sense of urgency and housing mortgage interest rates have to decline before we would see any significant impact on the real estate market. Overall the election results will certainly improve sentiment in the real estate market,” says Magazine.

Sachin Sandhir, MD, RICS South Asia categorically says that the country has voted for a stable government at the centre by giving a clear majority to a single party. While there may not be any immediate impact on the economy, the electoral verdict signals a clear mandate for the growth of housing and construction sectors in the country, and will boost employment and growth in the next 12 months period. Hopefully, the new government will work towards the betterment of the sector by removing the regulatory bottlenecks in the way of project approvals and bring pending reforms such as real estate regulation.

“The housing sector particularly is facing a number of challenges – the biggest of all is the subdued buyer sentiment. Prospective home buyers have become wary of entering into the market on account of problems such as high retail inflation, lack of regulation, faulty builder-buyer agreements favouring developers, rising property prices and uncertainty over the completion of a number of projects. This has resulted in drastic drop in sales across our cities. Hopefully, the new government will try to bring back consumer confidence into the market by removing these impediments,” says Sandhir.

Rahul Gaur, CMD of Brys Group makes an important observation when he says that the new government will have to move ahead of election rhetoric and bring about certain tangible results, as the patience of the business community and nation is running short. According to him, an economic turnaround is the only way the new government can send across a positive signal to the nation, failing which the huge mandate will have no meaning.

“It is alright if certain contentious issues like the retail FDI etc are put on the back burner during the elections as understanding about the benefits of FDI is not that high in this part of the world. But what the real estate and India’s business community at large is waiting is not what the government preaches but what it practices.  Some bold measures to attract the foreign investment, renewed thrust on the infrastructure projects and the incentive to the housing sector is the only options with the government that can lead the country into a new era of growth driven economy,” says Gaur.

Gaurav Gupta, Director, SG Estates says that with clear mandate and a stable government he now expects a fresh wave in real estate industry with all prospective buyers in wait and watch mode coming forward and finalising their purchase decision. To make it an interesting proposition for buyers, investors and developers, the new government may look into low cost funding availability and better infrastructure.

“Streamlining the approval process will result in quicker land acquisition and faster approvals. Implementation of proposed Goods & Service Tax framework; tax benefits for buyers/real estate developers to induce activity in real estate industry which is suffering from liquidity crisis and inventory overhang will also bring a wave of enhancement. It is expected that the government will take immediate action on delays on approvals of Height and Environment as well,” says Gupta.

The Indian real estate seems to be realistic in its expectations with the new government. At least on the face value no one is expecting an industry status in the immediate future; though easy access to finance is definitely on the wish list. But what is on the top of the wish list is the fiscal management & curbing inflation that can lead to revival in demand. Thrust on the infrastructure is the second most important wish list which is expected to lead to growth. Above all, the sector seems to be unanimous that the new government must take concrete measures to streamline the processes that give them time-bound clearances.

Centre to appoint realty experts in 15 states to boost housing

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The Centre will soon appoint real estate experts and consultants in 15 major states for helping them to prepare affordable housing policy and streamline the rules for approving realty projects, a top government official said on Wednesday, Oct 23.

“We are coming out with a policy where we will be engaging large number of real estate experts and consultants to each individual states and asked them to study various rules and regulations related to building plan approvals,” Housing and Urban Poverty Alleviation Secretary Arun Kumar Misra said while addressing a ASSOCHAM conference on the real estate.

Misra said the Centre would identify 12-15 major states where these experts would be engaged for simplification on the rules and regulations.

Realtors apex body CREDAI have been demanding a single- window clearance for approvals of realty projects, saying that the cost goes up by 40 per cent due to delay in approvals, which generally takes 12-24 months.

Speaking on the sidelines, Misra said that the process of engaging consultants has already started and the same would be completed in the next two months.

Asked about scope of work of these experts, the secretary said: “They will help the states to develop a housing policy with special emphasis on the affordable housing and also study the various laws, rules and regulations which are involved in getting a clearance of building activities.”

Misra said the experts would also develop a software that will help the states in expediting the approval process.

The secretary said that the investment in appointing these consultants would largely be borne by the Centre.

Apart from delay in approval process, Misra listed out other bottlenecks faced by the real estate sector that are limited land, existing rent law and high cost of funds.

On relaxing FDI rules in realty sector, Misra said the Cabinet note has already been circulated. He said the ministry has suggested bringing down the minimum built-up area to 20,000 square meters from the existing 50,000 square meters.

Foreign Direct Investment (FDI) of 100 per cent is allowed in real estate through the automatic route, subject to conditions, including a minimum built-up area for projects.

Misra highlighted that the Centre has sanctioned two schemes which will mobilise money by the government and institutional sectors to develop 2 million houses in next four years and has earmarked investment of Rs 40,000 crore.

To facilitate private sector participation in the affordable housing segment, he said the government has redesigned affordable housing in partnership scheme in which it would give a subsidy of 10-15 per cent of housing cost to build a house and make it available for the poor sections.

Realty regulatory bill to be introduced in Monsoon session: HUPA Secretary

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The real estate regulatory bill that seeks to bring transparency and accountability in the realty sector will be introduced in the monsoon session of Parliament, a top government official said on Saturday, July 6.

Last month, the Cabinet had approved the Real Estate (Regulation and Development) Bill, that seeks to provide a uniform regulatory environment to the sector.

“The Bill will be introduced in the Monsoon session of Parliament,” Housing and Urban Poverty Alleviation Secretary Arun Kumar Misra said at an annual convention of National Association of Realtors (NAR) India.

The Bill will be sent to Parliamentary Standing Committee for consideration and suggestions, Misra said.

The month-long Monsoon session of Parliament is expected to start in late July.

Misra also disagreed with developers’ contention that prices would rise by 30 per cent once this Bill is passed in the Parliament.

“All that the regulatory Bill says that when you start selling the flats, all the licenses and permissions should be in place,” the secretary said.

Stating that the Bill deals with property brokers and agents as well, Misra assured the brokers’ body NAR that they would be included in the list of associations to be consulted by the Standing Committee. He asked the brokers to bring more professionalism in their business.

NAREDCO, an industry body of real estate developers, President Naveen Raheja emphasised on the need of self- regulation.

NAR-India is an industry body for property brokers and it has 1,700 members. They are affiliated to the national association of realtors (NAR), a global association based in Chicago, USA.

Property brokerage firm Indiahomes Vice President Manish Mehta said NAR-India is a national level umbrella organisation which initiates efforts to generate and disseminate authentic information on the realty market to increase transparency in the sector.

The Bill provides for setting up a regulator for the real estate sector and has provisions like a jail term of up to three years for developers who make offences like putting up misleading advertisements about projects repeatedly.

It also intends to make it mandatory for developers to launch projects only after acquiring all statutory clearances from relevant authorities. The Bill makes it mandatory for builders to clarify the carpet area of the flat.

Realty regulatory bill to recognise only carpet area

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The proposed bill to regulate the real estate sector would make it mandatory for the development authorities to clear the building plan on the basis of carpet area, a top government official said on Saturday, May 4.

The government will bring the Real Estate (Regulation and Development) Bill in the next session of Parliament.

Addressing an ASSOCHAM conference on affordable housing, Ministry for Housing and Urban Poverty Alleviation (HUPA) Secretary Arun Kumar Misra said only the carpet area will be recognised in the regulatory bill.

“The municipalities and the development authorities would have to pass the map on the basis of carpet area and this would be a mandatory requirement as any other criteria apart from that like the super area or the built-up area and others would not be recognised by us,” Misra was quoted as saying in a statement issued byASSOCHAM.

In the national capital region (NCR), developers sell housing units on the basis of super area that includes built- up area plus area occupied by common amenities like lifts, corridors, club house and stairs. Super area is usually around 25 per cent more than built up area.

On the real estate regulatory bill, he said, “It would be difficult to give a time frame as we wanted to bring the real estate bill in Parliament in this session but we will not give up and definitely try to bring it in the next session.”

Last month, the Union Cabinet had deferred the approval of draft bill to set up a regulator for the real estate sector with provisions for jail term for the developer for putting out misleading advertisements about projects.

The proposed regulator also seeks to make it mandatory for developers to launch projects only after acquiring all the statutory clearances from relevant authorities.

It also has provisions under which all relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction.

Misra said the government would release the affordable housing task force report to the state governments in the next 15 days and would ask them to adopt the policy guidelines.

Fate of Regulatory Bill hangs in balance even after PMO steps in

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The fate of the Real Estate Regulatory Bill hangs in balance even after PMO steps in to resolve differences between two ministries—Housing and Urban Poverty Alleviation and Urban Development— threatening to further delay the long pending Bill. The PMO has reportedly stepped in and directed the warring ministries to quickly resolve their issues over the bill which aims to protect property buyer’s interest from unscrupulous realtors.

The industry bodies, in the meanwhile have opposed the government’s proposed law saying that the bill in the current form is not practical and only favours property buyers.

Under pressure from PMO, the two ministries met representatives of real estate developers’ associations and industry houses on Tuesday to get them on board.

The meeting was Chaired by Housing Minister Ajay Maken and Urban Development Minister Kamal Nath and attended by representatives of Confederation of Real Estate Developers’ Association of India, National Real Estate Development Council, Confederation of Indian Industries, Federation of Indian Chambers of Commerce and Industry among others.

“The real estate developers’ body has been asked to submit their view to us in the next couple of days following which another round of consultation will be held,” a housing ministry official said.

HUPA is planning to bring this bill in the forthcoming Budget session of the Parliament to regulate the sector. At present, inter-ministerial consultations are on after which Cabinet clearance will be sought.

“We opposed the bill in the current form. Bill is not practical and it is one sided, in favour of consumers,” NAREDCO President Naveen Raheja told PTI.

“We have demanded that all stakeholders in the development of real estate should be brought under the ambit of this bill including government agencies which give clearance to this project,” he added.

The association sought that all consumer complaints should be addressed to the proposed real estate regulator and no other authorities should attend their complains, Raheja said.

The Real Estate Regulation Bill aims to establish a regulatory authority for enforcing fair practice and accountability norms and fast track dispute resolution mechanism in real estate transactions.

According to sources, the six associations were asked to give their representation in writing.

They said CREDAI and other organisations also opposed the bill. A CREDAI official said the draft is detrimental to the interest of the industry and is one-sided.

Cabinet clears, sector debates and home buyers apprehensive about housing prices

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty Exclusive: The Union Cabinet has cleared the Land Acquisition Bill, the realty sector is debating its pros & cons but the home buyers are apprehensive whether the house prices will shoot up in proportion of the higher cost of fresh land acquisition. The Bill cleared by the Union Cabinet makes the consent of 80 per cent of owners mandatory for private projects.

In the case of public-private-partnership (PPP) projects, the bill makes mandatory obtaining of consent of 70 per cent of the land owners. Besides consent, the bill proposes higher compensation and rehabilitation package to land owners.

Realtors assert land prices will escalate leading to rise in housing price if the Land Acquisition Bill is passed by Parliament. Confederation of Real Estate Developers’ Associations of India (CREDAI) National President Lalit Kumar Jain says if the Bill gets Parliament’s nod, developers will also hesitate to go for big projects.

“It is not a good development for the industry. This will definitely increase land cost and housing prices,” Jain says.

Expressing similar sentiments, National Real Estate Development Council (NAREDCO) President Navin M Raheja says the Bill is not an industry friendly one.

“While farmers’ compensation issue is taken care of, the government should have looked at the overall growth of the country. Unfortunately, that is not the case here,” he added.

However, Hiranandani Constructions Managing Director Niranjan Hiranandani says with higher compensation to farmers, resistance in acquiring land will reduce in future. He nevertheless sounds apprehensive with the cost factor.

“Definitely land prices will shoot up. Now whether we will get land for affordable housing is a big question mark,” says Hiranandani.

The country’s largest realty firm DLF said the reaction and how it will affect the consumers, have to be seen after the Bill comes into effect.

“There has to be a debate in Parliament for this bill before the final approval. We will see how the situation unfolds in coming days as that will be crucial for any future decision,” DLF Group Executive Director Rajeev Talwar said.

Many within the sector also question the government’s lack of vision in making a difference between acquisition and purchase. Anil Sharma, CMD of Amrapali Group says when the act does not clearly define if I am going to buy wilfully from the landowner in a free market, how come it falls under acquisition.

“The land acquisition act of 1894 has got a thoroughly colonial essence. Unfortunately, after 115 years, we have been acquiring land only on the basis of that act, and taking the basis of that act to formulate a Land Acquisition Bill in 2012. You need to thoroughly change the entire hangover of that old view. Then the law is being formulated from the central point of view, it is a Parliament act being given to the state. Every state has different demographics, different land record systems. In India, our land record system is much behind different countries,” says Sharma.

Most of the developers assert they acquire land with full consent of the owners, and some of them are apprehensive of Centre & State relations coming in the execution leading to the Bill going the way of National Counter Terrorism Centre (NCTC) way.

Harmit Chawla, Managing Director of HCorp Realty says every stakeholder has his own view. State has its view, Centre has its view in terms of the policy and the sector has its view as to what is beneficial to them at the end of the day as far as the working is concerned.

“Going by the point that we have been debating on the land, the fact has always been that it has been a federal issue. The state has said that the land belongs to the state and at the end of the day they have the final call in terms of how things are going to move on that. And hence the land bill has not been through despite of being debated for long,” says Chawla.

Sector does not seem to be unanimous over many other clauses of the Bill. For instance, some point a doubt over the proposed Bill saying that the provisions would be applied retrospectively if the award of compensation has not yet been made. By award of compensation, one would assume that the land owner has actually received the funds into his bank account.

If the land owner in question has not accepted or otherwise received payment, it does not count as award of compensation. The implication is that if the land owner has not received compensation for any reason at all, he can bargain for a higher price and thereby hold up the process and also contribute to further land inflation.

Neeraj Gulati, MD of Assotech Realty, however, defends the bill and calls it of great importance to the real estate sector, a win-win situation for all stake-holders.

“The draft is the replacement for the outdated bill which was in effect ever-since the British era, the development in its clause like 80% consent of land owner made mandatory in case of private acquisitions while 70% consent in case of Public Private Partnership projects is highly appreciated. Further the aspect of segregating retrospective clause from the bill will definitely bring in transparency and speedy redressal on issues pertaining to land acquisition in recent times. This Bill is of great significance, not only for realty sector but for the entire infrastructure industry and will chart the future growth of the nation,” says Gulati.

Some industry watchers point out that the idea of the Bill was to ensure that land owners get fair and timely compensation and also resettlement options. But since the circle rates in most parts of the country are much lower than the actual market price, it may not serve the desired purpose. Others suggest it would need further tweaking to ensure that there is no potential for land owners to drive up land prices in the bargain – which, in turn, would mean that the cost of the houses go up unrealistically high.

Realty regulator goes NCTC way, Centre allows states to set up own regulatory body

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty: In wake of stiff resistance from the states over the proposed regulator to safeguards the consumer interest against shady realty deals & delays, the Centre has reportedly decided to allow the states to set up their own grievance redressal mechanism.

Track2Realty was the first to report that states’ reluctance to come on board may take the Regulator Bill to NCTC way. It is now learnt that the Housing and Urban Poverty Alleviation Ministry, which has finalized the draft of Real Estate Regulatory Authority Bill, has dropped the original provision to set up a central real estate appellate tribunal.

Apprehending that the Bill might face opposition over this clause, the Ministry has decided to allow states to set up their own appellate authority. The ministry had earlier received several representations from states demanding to set up their own grievance redressal mechanism.

The Tribunal’s role will be to adjudicate any dispute between a developer and an allottee as also between the developer and the real estate regulatory authority.

“We have agreed to the states’ demand to set up their own appellate tribunal,” said a Ministry official requesting anonymity.

The draft Bill is likely to come up for Cabinet approval soon. The original Bill has gone through several changes over the past year to make it palatable to states, including Uttar Pradesh, West Bengal, Tamil Nadu and Chhattisgarh, which had opposed it on the ground that it infringes on the federal structure.

The Bill proposes setting up of a real estate regulatory authority at every state.

All such builders — developing a project where the land exceeds 1000 square metre — will have to register themselves with the body before launching or even advertising their project.

Failure to do so will invite up to a maximum three years imprisonment or fine of up to 10% of the total project cost.

The developer will also have to submit project details including approved layout plan, timeline, cost and the sale agreement that prospective buyers will have to sign to the proposed regulator.

Only developers who fulfil this disclosure clause would be permitted to advertise their project to prospective buyers.

Panel recommends to monetise unutilised govt land

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaTrack2Realty-Agencies: The government should take steps to monetize under-utilized land resources of public sector enterprises, port trusts and railways, a panel set up to chart out the roadmap on fiscal consolidation has recommended.

The panel headed by former Finance Secetary, Vijay Kelkar also outlined a series of policy steps to repair the battered public finances and help promote growth against the backdrop of a difficult global situation.

The committee examined various measures which are needed to be undertaken by the government for fiscal consolidation in the medium term. These include raising the tax-to-GDP ratio, policy measures for pruning expenditure on subsidies and other items of expenditure, rightsizing of plan support, and steps for increasing disinvestment proceeds.

“The Indian economy is presently poised on the edge of a fiscal precipice, making corrective measures aimed at speedy fiscal consolidation an imperative necessity if serious adverse consequences stemming from this situation are to be averted in an efficient and timely manner,” the panel said in its report.

The report said an additional source is the disinvestment of minority government equity stakes in private entities, such as the holdings in Suuti, HZL and Balco.

“There is practically no economic or strategic rationale for holding on to these minority share holdings in such companies, which are essentially privately owned. Since divestment in these companies will meet a substantial part of the disinvestment target fixed for the current year, it is necessary that the government take effective steps expeditiously to realize these receipts,” the panel said.

“In our assessment, if these measures are adopted, the disinvestment target by the budget estimates, of Rs 30,000 crore, can be achieved,” the report said.

The panel said that over the next 24-36 months, there is yet another policy instrument for raising resources for development and that is monetizing government’s unutilized and under-utilized land. These resources can finance infrastructure needs in urban areas.

“For monetizing land resources, the potential is considerable given the under-utilized prime lands of PSUs, port trusts, railways etc. Towards this we recommend setting up of a group to work out the policy framework and institutional modalities,” the panel said. “Such a policy has been effectively utilized in many countries including US, France, Canada, Australia and China,” it said.

The panel also said central public sector undertaking holding large cash balances should be urged to look for sound investment in key area.

“If the CPSEs are, however, unable to find good investment outlets during this fiscal year, then the government, should, as majority owner, call for a special dividend on a ‘use it or lose it’ principle,” the panel said.

It said that in the base year of 2012-13, it is possible to achieve a fiscal deficit target of 5.2% with various policy initiatives, which involve limiting expenditure on subsidies, meeting the tax receipts and disinvestment targets set at the budgetary estimates stage and effecting savings in plan expenditure by rationalizing expenditure.

1 2