Tag Archives: Real Estate Fund in Budget

Consumer-friendly real estate bill to come up in Parliament

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty: The government is all set to introduce a buyer-friendly real estate legislation which aims to protect consumers and bring transparency in the sector in the monsoon session of Parliament.

“We will will be introducing the Real Estate (Regulation and Development) Bill, 2013, which is very relevant to real sector in the monsoon session,” said housing and urban poverty alleviation minister Girija Vyas on Wednesday.

She said the bill has been approved by the Cabinet and is proposed to be introduced in Parliament.

The monsoon session of Parliament will begin on August 5 and the bill, after its introduction, is likely to be referred to the standing committee of Parliament for examination.

Describing the bill as a pioneering legislation which will install standardization and professionalism in the sector, Vyas said, “It will ensure consumer protection and promotion of the real estate sector through effective regulation and introduction of speedy mechanism for adjudication of disputes.”

The real estate sector is one of the largest business and employment generators in the Indian economy. Despite its mammoth size, the sector does not have a regulator who can balance the interests of the various stakeholders involved though there are a number of legislations at various levels that affect the sector directly or indirectly.

Assuring the industry that all their concerns have been taken into account in the bill, she said, “Any further suggestions, if any, can also be taken on board at the time of examination by the standing committee.”

“The government is keen to bring reform to the areas which are crucial for the development of housing and real sector,” she said.

According to the HUPA ministry data, the housing shortage in India is to be around 18.78 million out of which 56% is in the economically weaker category and 39% is in the lower income group category.

Quoting the McKinsey Global Institute projections, she said, “About 38 million households will not be able to afford housing by 2030. This is quite alarming for us.”

Consensus over Land Bill after key changes

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: After weeks of hectic negotiations, the government on Thursday, April 19, has managed consensus on the crucial Land Acquisition and Rehabilitation and Resettlement Bill, paving the way for its consideration and passage in the second half of the budget session of Parliament beginning April 22.

“We have reached a broad consensus on the Land Acquisition Bill,” announced Parliamentary Affairs Minister Kamal Nath after an all-party meeting. The Bill, being seen as a key reform measure of the Congress-led government ahead of the Lok Sabha polls due next year, is expected to be brought in Parliament with around 35 major amendments.

The government has agreed to some key suggestions made by the BJP and other parties to get them on board for this proposed legislation that has been hanging fire since it was first introduced in Parliament in September 2011.

In a significant move, the government has agreed to the demand of some parties, including the BJP and Shiv Sena, to also compensate the original land owners if land that has been purchased by private entities after September 5, 2011 (when the Bill was introduced) is acquired by the government. Parties had raised concerns of “land mafias” buying and hoarding land in anticipation of hefty compensation after acquisition by the government.

The government has agreed to include a provision that would ensure that in such cases, the original land owner also gets a share of the compensation. While the exact amount has not been decided, sources said it is likely to be in the range of 40 to 50 per cent of the total compensation awarded.

“There was a general consensus that this Bill should be passed in this session. All parties have made it clear that they don’t want any delay,” said Union Rural Development Minister Jairam Ramesh.

The government has also agreed to the BJP’s proposal on having an option where land is taken on lease from the farmers instead of being acquired, so that the ownership remains with the original land-owner. The Bill will have an “enabling provision” on leasing land, where states will be given the flexibility to pick this option.

The government has said it will “find a way of trying to incorporate” the CPI(M)’s demand that compensation be paid to tillers and tenants as well. In the current Bill, tenants benefit from only the resettlement and rehabilitation provision.

The government has also agreed to the CPM’s demand for changes in certain sections which give the government the right to amend clauses related to compensation as well as resettlement and rehabilitation. The party had demanded that the government should have the right to amend these provisions, but only to revise both upwards and not to dilute or reduce them.

“The government should have limited rights…It should be given flexibility but not unfrittered power,” said Ramesh, while concurring with the recommendation.

JD(U) leader Sharad Yadav’s demand was also considered when the government said it will introduce a provision to ensure food security is not jeopardised. The social impact assessment will also look at how “a proposed project will impact food security in the region”. Further, MPs, MLAs and NGOs will also get representation during the SIA.

On the contentious issue of acquisition of multi-crop land, the government has said it will leave it to the states to decide what proportion of such land can be acquired.

However, some parties, including the DMK and CPM , continue to harbour reservations about the Bill. While the former says the Centre should not have a right to legislate on the matter since land is a state subject, the latter has said consent of all families affected by acquisition should be taken. The Bill mandates the consent of at least 70 per cent of those whose land is acquired for PPP projects and 80 per cent when acquisition is for private companies.

Today’s meeting was attended by representatives from most political parties except the BSP, Trinamool Congress and Shiv Sena.

Cabinet defers decision on real estate regulator Bill

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: The Union Cabinet today deferred considering a draft law 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.

“A decision on the real estate regulator Bill has been deferred,” a Union Minister said.

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.

The Real Estate (Regulation and Development) Bill seeks to provide a uniform regulatory environment to the sector.

The Bill has certain tough provisions to deter builders from putting out misleading advertisements related to the projects carrying photographs of actual site.

Failure to do so for the first time would attract a penalty which may be up to 10 per cent of the project cost and a repeat offence could land the developer in jail.

The proposed Bill also seeks to make it mandatory for a developer to maintain a separate bank account for every project to ensure that the money raised for a particular task is not diverted elsewhere.

Pragmatic realty moves ahead of budget rhetoric

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By: Ravi Sinha

Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty Exclusive: Come budget and the real estate in the last few years seems to have been repeating the rhetoric of industry status. As a result, year after year it has been a case of realty proposes and the Finance Minister disposes. However, the sector on the eve of 2013-14 makes a strategic shift to be more realistic with its causes and concerns. As a result, there are more rational voices coming out of the respective real estate industry bodies and the individual developers. Infrastructure status, making housing a priority sector under Special Residential Zones (SRZs) and other tax sops are indicating that finally the policy advocacy for the sector is moving in the right direction.

After all, the sector has learnt its lessons on fire. Facts speak for themselves. Developers were cautious in launching projects as the gap between a launch and the absorption numbers reduced to 32,000 units in 2012, compared with 82,000 and 94,000 units in 2010 and 2011, respectively, according to a Knight Frank report. According to a Cushman and Wakefield report, there was a 16 per cent drop in the residential market across major cities in India in 2012.

Consultancy firm DTZ says it expects an extension of an interest subsidy scheme with enhanced limit on housing. “We hope the finance minister relaxes norms pertaining to external commercial borrowing (ECB) for low-cost housing. The government should look at development of special residential zones, says Anshul Jain, Chief Executive Officer of DTZ India.

In the run up to the upcoming Union Budget, the National Real Estate Development Council ( NAREDCO) has made a pitch for the sector to get infrastructure status and rental housing be made more attractive to address the shortage of houses. The industry body says the deduction from rental income under Section 24(a) of the Income Tax Act should be increased from 30 per cent to 50 per cent. This will promote rental housing. And, for women and senior citizens, the deduction could be 100 per cent, keeping social requirements and empowerment of women in view.

CREDAI has presented a wish list to the Finance Minister, which includes the demand for an inclusive housing policy and tax incentives. The tax incentives suggested by the body include allowing tax exemption for small houses of under 60 square metres of carpet area and creation of special housing zones with tax exemptions on the lines of SEZ for constructing 45 square metres houses for low income groups and 30 square metre houses for the economically weaker sections.

CREDAI National President Lalit Kumar Jain says affordable housing should be treated as priority sector and the rates of interest for housing loans should be brought down to an acceptable 7.5 per cent. Home loan should cover 90 per cent of total cost including taxes.

“Over the last nine months, the credit to commercial real estate has gone down by more than 13 per cent and priority lending to the housing sector by 1.29 per cent. The present risk weightage of 1.25 per cent given by the RBI, resulted in choking of bank finance to real estate, which in turn impacted the availability of housing stock and the prevailing market-driven high prices,” says Jain.

This policy advocacy seems to be heading in the right direction since Union Minister for Housing and Poverty Alleviation has also agreed that once affordable housing is a part of the infrastructure sector, four per cent of bank loans should be reserved as priority loans for affordable housing. Maken suggests like for infrastructure projects, a delay of more than six months should not be considered as non-performing assets.

Brotin Banerjee, Managing Director and Chief Executive Officer of Tata Housing expects a raise in the income-tax exemption limit to Rs 3 lakh and a reduction in excise duty rates to put higher disposable income at the hands of the public. His demand is that service tax be done away with in the housing sector to motivate consumers to increase the buying activity and revive demand.

The sector seems to have realised that benefits of industry status, that is easy access to finance, should be the larger objective, instead of getting into the rhetoric of industry status that has not gone down well with the government due to the inherent contradictions in the nature of the business of real estate. No wonder, the demands are more focused this time around and the sector understands that many of their causes and concerns will be automatically addressed if housing is declared as infrastructure.

However, some analysts point out the anomaly in the infrastructure demand as well. They believe currently companies building roads, pipelines and telecom towers can access financing from banks or non-banking finance companies at lower rates, and for a longer period. Infrastructure development has certain special needs – it is shared among a large number of people, and it is difficult to keep out free riders, making it hard to finance. Typically, the initial investment is considerable, and it only pays off after some time.

In addition, it permits lower costs to an entire gamut of local enterprises. Thus, it makes sense to have different standards and requirements for infrastructure. Does real estate development practically meet any of these criteria? Critics of infra demand are asking this even though the realty sector has practically climbed down to be heard by the Finance Minister.

India to host real estate luxury show

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: After fashion weeks and wedding exhibitions, India is now set to welcome a first-of-its-kind Real Estate Luxury Show (RLS India 2013), which will serve as a platform for showcasing the properties of the country’s real estate giants.

The two-day multi-city show, organised by Global Ventures Media in association with Indicom, will start March 9 at Mumbai’s Four Seasons Hotel. The show will also tour other luxury destination like New Delhi and Bangalore.

“Analysts predict that the luxury residential market has a potential to grow at a Compound Annual Growth Rate (CAGR) of around 28 per cent during 2011-2013. This show is a platform to share the affluence of our nation,” Tejas Chhatriwala, director, Global Ventures Media, said in a statement.

The show is strictly by invitation only and will have some of the leading real estate companies, luxury interior and products designers exhibiting their brands.

“People who find luxury in garments and accessories certainly understand that luxury is an experience. It is at home that everyone finds luxury. This initiative will offer a luxury living experience,” Chhatriwala said.

Real Estate Regulation Bill likely in Budget session

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: The government is likely to come up with a Bill in the forthcoming Budget Session of the Parliament to regulate the real estate sector, Housing Minister Ajay Maken  said on Wednesday, Dec 9.

The Minister 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.

“Inter-ministerial consultations are still on. Cabinet clearance will be sought once inter-ministerial consultation is over,” Maken told reporters in New Delhi.

Asked whether the Real Estate (Regulation & Development) Bill would come in the upcoming Budget session, he said, “Let’s hope. It is required.”

The draft legislation, pending since 2009, aims to establish a regulatory authority for the realty sector, ensure sale of immovable properties in an efficient and transparent manner and protect consumer interest.

The most important proposal in the draft Bill include setting up a regulatory authority in every state.

Asked about the raising external commercial borrowing (ECB) limit for affordable housing, the Minister said, “We are in talks with the Finance Ministry.”

At present, RBI has allowed raising USD 1 billion under the ECB route for the affordable housing, he said.

“ECB for USD 1 billion is there for affordable housing. It has just started. I think it is just a beginning,” he said.

On the Budget wish-list, Maken said, the Ministry is preparing recommendations.

“We wish that fiscal incentive should be there for affordable housing for the poor and LIG (low income group),” he added.

Cabinet to discuss bill to regulate realty today

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle India, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: The Union Cabinet on today, Oct 25, is likely to discuss the bill to regulate the real estate sector and also protect the interests of home buyers.

Sources in the government said that the Real Estate (Regulation and Development) Bill, 2012 (pending since its inception in 2009) is high on the agenda of the Union cabinet and the government intends to introduce the bill in the upcoming winter session of Parliament.

The draft legislation of Ministry of Housing and Poverty Alleviation (HUPA) seeks to set up a watchdog for regulation and planned development of the hitherto uncontrolled sector, which will also ensure sale of immovable property in an efficient and transparent manner. The legislation proposes setting up of a real estate regulatory authority in every state.

The Real Estate (Regulation and Development) Bill, which has been cleared by the Law Ministry, seeks to prevent unscrupulous real estate developers from fleecing consumers. According to an official the ministry is planning to introduce the bill during the Winter Session of Parliament.

The ministry, however, has diluted the plan after getting feedback from the states and other stakeholders, including realtors. Sources said the new proposal will deal only with property transactions as it comes under the Concurrent List.

The draft legislation provides punishment for selling a project without registration with the proposed regulator. All developers or builders working on a project, where the plot exceeds 1,000 square metres, will have to register themselves with the regulator before launching – or even advertising – the venture. Any violation will attract a maximum of three years’ imprisonment or a fine of up to 10% of the project cost or both.

An official said in the new proposal, the size of the land proposed to be developed has been brought down to 1,000 square metres from the earlier 4,000 square metres for coverage under the bill. States have been given freedom to change the limit, the official said. Realtors will have to submit project details – approved layout plan, timeline, cost and sales agreement proposal – to the regulator. It will be mandatory for builders to fulfill disclosure clause to get permission from the regulator to advertise the project.

The bill proposes imprisonment of up to a year or fine extending to 5% of the project cost for violation of contractual conditions. The regulator will be headed by a chairman and two members – to be appointed by the state government.

The official maintained there was provision for two-tier system for redress of buyer’s grievances – a regulatory authority at the state level and an appellate tribunal at the Centre.

Incidentally, the real estate sector has of late assumed greater significance with a projected revenue growth to the tune of $180 billion by 2020 at a rate of 30 per cent per year from now. In the last one decade the sector has attracted about $9 billion, as 100% FDI is allowed through automatic route.

Azure launches Rs 250 cr realty fund for 7 cities

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: Azure Capital, the promoters of India Realty Fund I, launched its India Realty Fund-II (IRF2), a rental yield fund that focuses on commercial properties across the top seven cities of India. The size of the fund is Rs 250 crores with an additional Green shoe option of Rs 250 crores aggregating to Rs 500 crores.

IRF2 would primarily focus on investment grade commercial properties with lease to reputed tenants in the top seven cities of the country such as Mumbai, Delhi-NCR, Bangalore, Chennai, Hyderabad, Pune and Ahmedabad.

Investment will be made into commercial properties that are pre leased, built to suit and also in structured deals where development risks are mitigated. The deployment of the IRF2 will be across 10-12 commercial properties with an average ticket size of Rs 25-30 crores.

Azure Capital Advisors, Chief Executive Officer, Shailesh Ghorpade, said, “These projects will provide regular returns to investors with an upside of capital appreciation. The valuations presently are quite attractive as developers are increasingly looking at de-leveraging their assets. IRF2 targets such investors who have a low risk appetite. Recurring yield income coupled with high and stable capital appreciation, diversified portfolio with superior risk-adjusted returns, absence of development risks together makes IRF2 a safe investment proposition in the Indian real estate fund category today”.

The fund life will be 4 + 1 years and the fund plans to raise the entire corpus within nine months from the first close.

Government plans to sell surplus land to ease fiscal crunch

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, Track2Infra, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTrack2Realty-Agencies: The Centre is ready with an ambitious plan to sell surplus government land to generate cash to ease financial pressures, as suggested by the Vijay Kelkar Committee on fiscal consolidation. A Cabinet note prepared by the Finance Ministry within days of the Kelkar Panel submitting its recommendations says that proceeds from the sale or lease of surplus land, seen as a non-performing asset, would be used only to repay loans or create capital assets that will generate recurring revenue.

The upfront statement of objective is apparently a counter to any criticism that the government is selling family silver to feed its populist policy impulse.

The proposal virtually lays down the policy that outright sale of land is to be preferred over other modes of earning cash from it — like lease and licensing. The government says that land leases are a losing proposition since the rental is out of sync with market value. Also, regaining possession of land after expiry of lease is a tough act.

Any sale of land with market value of more than Rs 50 crore would require Cabinet approval while those below would have to be disposed as per laid-down e-auction procedure.

Crucially, for purposes of leasing, the Vijay Kelkar committee’s proposal has suggested that the rental be fixed on the basis of elaborate criteria based on market value of land and the expected appreciation.

The move to monetize land coincides with the raging debate over how to exploit government assets, including more divestment in PSUs to bridge the yawning fiscal deficit. The Kelkar committee warned that the failure to move briskly would expose the country to a crisis worse than what it had endured in 1991. The report suggested that exploitation of the government’s assets could play a key role.

Although most government departments do not have an exhaustive asset register, the assessment is that shipping, defence, posts, airport authority and railways would be sitting on the largest land banks. According to estimates, railways alone can monetize around 10,000 acres in urban centres, generating Rs 50,000 crore. Similarly, port trusts can monetize around one-fifth of 2.5 lakh acres they own.

The new land alienation policy may even cover Airport Authority of India and port trusts that enjoy statutory powers to grant lease on their own. Besides revenue for the cash-strapped exchequer, the move will result in the creation of a maiden database of government land and identification of surplus land with all public entities, PSUs included.

According to reports the Finance Ministry has moved quickly on the land issue as suggested by the Kelkar panel even though it took almost four weeks to dismiss the panel’s suggestion to do away with fuel, fertilizer and food subsidy and go slow on proposed food security law.

Officials pointed out that the move was a follow-up to the Ashok Chawla committee on allocation of natural resources that has been under discussion for months.

The draft policy lays out procedures for sale of land to cut out arbitrary actions that expose the government to charges of corruption like Cabinet nod for land assessed at over Rs 50 crore.

A Public Sector Land Management Committee comprising top secretaries will be tasked with creation of a database within a year. It would ensure that land records are updated and assess the market value based on floor area ratio, presence of utilities, the development potential and availability of minerals around the site. The government departments would also be asked to boost land’s market rate by value addition.

Real Estate Bill adds chapter to regulate unorganised property agents

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Indian Parliament, Pranab Mukherjee, Finance Minister, Union Budget India 2011, Real Estate Fund in Budget, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe government plans to bring unorganised property agents and brokers under the ambit of the proposed real estate regulator, imposing stringent penalties including imprisonment on those who dupe buyers or operate without a valid registration.

“We have added a chapter on real estate agents in the Real Estate (Regulation and Development) Bill. This will bring in the much needed order in the segment,” said a source in the ministry of housing and urban poverty alleviation. The bill will be sent to the Cabinet next week.

The draft bill already includes a provision for imprisonment of up to three years, or a penalty of up to 10% of the cost of project, for builders selling projects without registration.

The government has so far maintained that the imprisonment clause will be invoked in extreme and deliberate violations.

Real estate industry bodies have termed the bill draconian and made representations against the provisions of imprisonment and penalty, but the official said that the imprisonment clause has been retained.

The bill has been prepared after several rounds of consultations with state governments and stakeholders like builder associations and consumer forums. The official said it has now been cleared by the law ministry and will be sent to the cabinet next week. The government plans to table the bill in the winter session of Parliament.

Unlike matured property market across the world, property brokers in India do not need to register or operate through a licence. A few organised brokerage firms have come up in the last few years, trying to bring in some order in the sector, but most agents are unregulated and operate out of temporary premises.

In the past, homebuyers have reported of being cheated by agents who have misinformed them about projects, pricing and sellers. In many cases property agents have issued credit notes to buyers at the time of signing up the property, but these notes are not honoured.

In countries like Australia and the US, real estate agents need to acquire a licence from the government. These licences are issued only to those who have a certain minimum education and experience in the field.

In the UK, the National Association of Estate Agents issues licence to real estate agents. Japan introduced licence for property agents after widespread complaints of unscrupulous practices in the 1980s.

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