MahaRERA extends deadline for more than 540 lapsed housing projects

Officials informed The Times of India on Monday that the Maharashtra Real Estate Regulatory Authority (MahaRERA) has granted extensions to a total of 541 stalled projects in the state. Each project underwent separate hearings and received approval from the respective homebuyers involved for the deadline extension.

540 lapsed

With the Union ministry of housing and urban affairs (MoHUA) direction to all states last month to ensure that lapsed projects are completed so that homebuyers are not affected, MahaRERA has heard out the developers and given them time to finish the work.

A total of 356 projects have been given the extension, while 185 projects are in hearings and in the process of being given extensions.

The extension to any housing project comes with certain conditions for the developer to follow, said officials.

MahaRERA chairman Ajoy Mehta said the deadline extension is permitted only after due diligence and receiving a project completion guarantee. The aim is to get stalled housing projects completed and protect homebuyers’ interest, he told TOI, adding, “Some people have been complaining that MahaRERA grants extension to projects despite their grievances. I would like to reiterate that the extension is given only after strict scrutiny of all proposals and reasonable conditions to complete the stalled project. MahaRERA’s aim is to ensure a residential project gets completed under any circumstance and homebuyers get their rightful shelter.”

West Bengal starts converting land from leasehold to freehold ownership

The Bengal government has started implementing land conversion from leasehold to freehold, state commerce and industry minister Shashi Panja said after a cabinet meeting chaired by CM Mamata Banerjee on Thursday.

freehold

The Bengal government has started implementing land conversion from leasehold to freehold, state commerce and industry minister Shashi Panja said after a cabinet meeting chaired by CM Mamata Banerjee on Thursday.

The conversion fees are based on lease duration. For a lessee of 99 years, 15% of the current market price will be charged while it will be 70% for 30-year lessees and 25% for assignees in between. The Land Ceiling Act imposes a limit of 24 acres for landholding, beyond which the excess land is vested.

According to the state’s conversion rules, state allows the conversion of leasehold lands settled for 30 and 99 years, including Kolkata Khasmahal land as well as land under WBIDC, WBIIDC and WBSIDC.

Industry experts foresee relief for lessees and a streamlined implementation of industrial projects, fostering easier access to bank credit for the industry.

Panja highlighted successful land allotment in the proposed hosiery park in Jagdishpur, Howrah, where 3.6 acres were allocated to 15 MSME units. She added that the textile hub project in Metiabruz is underway.

Can HIRA and RERA co-exist in West Bengal?

The government is examining whether two separate Acts on the subject of regulation of the real estate sector — one enacted by the Centre and the other by a state — can coexist.  The ministry of housing and urban affairs announced on Twitter on Thursday that it is examining whether both Acts can co-exist.

co-exist
RERA was fully notified in 2017 and states were given powers to notify their respective rules and appoint regulatory authorities. While this is applicable across the country, except in J&K, the West Bengal government is the only one that has come out with its separate legislation, HIRA.

The government had earlier constituted a sub-committee in the Central Advisory Council meeting with the objective of persuading the Bengal government to adopt RERA, besides oversee the implementation in other states. However, this sub-committee has not been notified till now.

Having central and state Acts on the same subject is under examination. A sub-committee under these circumstances will serve no purpose. Full compliance of transformational legislation like RERA will bring positive changes in the sector which will be good for all stakeholders,” tweeted the ministry of housing and urban affairs.

Both RERA and West Bengal’s HIRA differ on the definition of force majeure clause and garage. Under RERA, force majeure clause can be invoked only in case of war, draught, floods, earthquake, fire or any other natural calamity affecting the regular development of real estate projects.

However, according to HIRA, over and above the conditions listed under RERA, force majeure clause can be declared for any other circumstance prescribed.

RERA has defined garage as a place within a project that has a roof and walls on three sides for parking any vehicle, but it does not include unenclosed or uncovered parking area. HIRA, on the other hand, says a parking slot means such an area as may be prescribed, and garage as sanctioned by the competent authority.

Experts have raised concern over the dilution of the Act and are of the view that states need to follow RERA in letter and spirit. According to them, states may decide to follow the model adopted by Bengal if it goes through, and may result in making RERA redundant.

Most states have initiated the process of setting up the regulator and authorities from Maharashtra, Punjab, Madhya Pradesh, Haryana and Gujarat have already started passing the orders. Kerala and Telangana have notified their state rules under RERA, but are yet to set up an authority.

Maharashtra govt cancels affordable housing in special development zones

The state issued a notification on Thursday to eliminate affordable housing in the No-Development Zones (NDZs) of the city, renaming them as Special Development Zones (SDZs). The focus will now be on high-density slums, which will be the only areas referred to as SDZs.

no development zones

The notification reintroduces the low floor space index of 0.025 on NDZs and allows tourism development, educational institutions, ground-plus-one residential structures, IT parks etc.

The urban development department’s notification invited objections and suggestions for sanctioning the few remaining Excluded Parts (EPs) of the Development Plan (DP) 2034 covering SDZs. The DP contains two components – Sanctioned and Excluded. The Sanctioned Parts are provisions ready for implementation, while the EP have newly introduced provisions for which the government invites suggestions and objections from the public.

Former CM Uddhav Tha-ckeray had refused to sanction these EPs as he had considered them ecologically damaging and detrimental to Mumbai. Thackeray, sources said, had signed a detailed note stating his reasons for not sanctioning SDZs. Later, some landowners approached Bombay high court asking for the EPs to be sanctioned. The HC had then directed the state to decide within eight weeks. The Eknath Shinde government has now decided to scrap the SDZs, except where high-density slum areas are located.

Urban researcher Hussain Indorewala said the new notification has done away with affordable housing in SDZs. “Only densely populated slums (650 tenements per hectare) will be redeveloped through slum rehabilitation scheme on such lands,” he said. “The scrapping of affordable housing on SDZs raises the question of whether the government is reconsidering their assessment of supply and demand for affordable housing.

The biggest challenge was that there was absence of civic infrastructure on these lands. “Perhaps there were no takers for this affordable housing scheme amongst builders and hence the state decided to scrap it,” said a town planner.

Indorewala said it is unclear what kind of development the government proposes through tourism and IT park zones. “It is largely creating commercial infrastructure rather than essential infrastructure for citizens. The government must look outside Mumbai for land for tourism development and IT parks.

Kolkata Municipal Corporation to Require Water Meters for New Constructions

In an effort to curb the wastage of treated water, the Kolkata Municipal Corporation’s water supply department is set to implement water meters in all new buildings within its jurisdiction. This initiative is aimed at analyzing the water usage trends in neighborhoods and minimizing the significant loss of treated water.

Water Meters

Following a water consumption survey in the Dum Dum-Cossipore area, the city authorities have decided to expand the installation of water meters to other neighborhoods. After the initial implementation in Dum Dum-Cossipore, hundreds of households in the Mukundapur area off EM Bypass are now also receiving water meters.

The KMC is committed to fitting water meters in newly built structures, including standalone apartments and large housing complexes, to reduce wastage of treated water.

The survey in the Dum Dum-Cossipore area has alarmed some officials in the KMC water supply department, as they discovered that nearly 18,655 households were using 300 litres of water per person. The surveyors were also surprised to find a single family of five consuming 3500 litres of potable water daily. This misuse of water is concerning, especially considering the significant costs involved in collecting and treating raw water from the Hooghly.