Category: Delhi/NCR Real Estate

DLF Might Come Under CCI’s “Cease And Desist’

Competition has been always there in realty business. But once again DLF has caused some distress in their business practices which seems against the regulation; for CCI again has directed DLF to “cease and desist” from arbitrary business practices. The recent order has come after a comprehensive investigation on accusations that DLF gives rein to anti-competitive practices with regard to some projects in Haryana and Gurgaon.
DLF Ltd. is a page-oner in colonization and real estate business. The company is mainly known for its advanced commercial real estate development across the country. Now the big-gun has been already imposed a penalty by Competition Commission of India (CCI), thus the commission is unable to further penalize the organization (dated Jan 4, 2017).
CCI finds DLF indulging in the conduct which is proved to be unfair and offensive in terms of the provisions of Section 4 of the “cease and desist’’ act. Section 4 of the Competition Act refers to abuse of dominant position. However, DLF group holds a dominant position in the current and competitive market; we will have to watch how this penalization affects their business practice. ‘Provision of services for development/ sale of residential apartments in Gurgaon‘ was contemplated as the relevant market.
This is not the first time the company is facing such kind allegations, in previous several occasions the company was directed not to foster unethical business proceedings. Now CCI again pointed at DLF Gurgaon Home Developers Pvt. Ltd and asked them to take heed of their unfair trade ways but didn’t compel any additional penalty charges. This time the charge against the company is to foisting highly uninformed and unscrupulous conditions on property buyers at a project in Gurgaon. Also the allegation was doing rounds of company’s abusive act towards the civic bodies and existing buyers. Two individual complains were launched in 2014 and 2016 were alliance by the regulator, which required a detailed investigation ordered by the Director General (DG).
Image and video hosting by TinyPicThe order discloses, “The Commission is of the view that since a penalty of Rs 630 crore has already been imposed on the Opposite Party Group (DLF) in the Belaire’s case for the same time period to which the present cases belong, no financial penalty… is required to be imposed.”
In the year 2011 DLF was penalized a fine of Rs. 630 crore after founding infringement of completion regulations following by a protest by Belaire Owners’ Association in Gurgaon. The penalty has been confronted by the company. The recent allegation of abuse of dominance including obligatory purchase of the parking lot and one-sided agreement went in the favor of DLF.
Quoting the DG’s report, the regulator said “there is no doubt that the strength which the OP (opposite party) Group possesses in residential real estate segment in the geographic region of Gurgaon is incomparable”.
Asking about this conclusion CCI said, “The assessment done by the Commission in the previous orders would also apply in the present matters since the issues, the relevant period and the opposite parties involved are the same.’’ It also added, “The Commission is of the view that the terms and conditions imposed on the allotters in the instant matters as analyzed by the DG in detail are abusive in nature.’’

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By LNN (Liyans News Network)

New Registration Rule Of West Bengal Under RERA

RERA was introduced to aim at enhancing property buyers’ right protection. Real estate in particular has effective role in Indian GDP. Again economic activities don’t symbolize GDP. Over the years real estate industry has been pointed as a sector of illegal money perking and delay in the registration and delivery process. Now HUPA has asked every state government to get registered under notified RERA. Gujrat has been the first state to register notified RERA. Now it’s West Bengal’s turn to submit notified real estate norms. As per the act state government needs to submit ‘’lay out plan’’- a plan of the projects representing the division or the proposed division of land into plots, roads, open space, amenities etc. and any other details as may be necessary.

It all starts with the plot registration clause
Act’s second chapter consist the rules for real estate project registration. For registration purpose a documents that are needed-
1. Authenticated PAN card, audited balance sheet of the previous financial year and valid income tax returns of past 3 years of the promoter.
2. Legal deed of the plot reflecting title of the promoter to the particular land with all other legal documents that proves that the land doesn’t have any third party involvement.
3. The details of loan and other debts on the land on which the development is proposed.
4. The correct measurement of open parking allotment.
5. In case the owner is any third-party or under any joint ownership there should be a proper written consent of the owner or JV agreement, copy of collaboration agreement and development agreement.
6. The promoter will pay the registration fee at the time of application by way of a demand draft on any listed bank for a sum calculated as the rate of:

a. Rupees 10/ sq mtr for residential projects where the area of land proposed to be developed, doesn’t exceed 1000 sq mtr., or 20 Rupees/ sq mtr for residential projects where the area of land proposed to be developed exceeds 1000 sq mtr.

b. Rupees 50/sq mtr for commercial or any other projects where area of land proposed to be developed doesn’t exceed 1000 sq mtr or Rupees 100/ sq mtr area of land proposed to be developed exceeds 1000 sq mtrs

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If the promoter applies for withdrawal of the application for registration before the expiry of the registration period of 30 days provided registration fee to the extent of ten percent paid under sub rules or rupees fifty thousand whichever is more, shall be retained as processing fee by the regulatory authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal.

Land registration process in India has been quite a lengthy and complex process which straightway affects the possession delivery and causes delay after the completion of the project.

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By LNN (Liyans News Network)

Houses – Apartments – Flat for Sale Delhi

The real estate sector has been witnessing a declining trend in big cities such as Bangalore, Kolkata and Chennai, while the growth is noticeable in smaller cities, labelled as tier-2 centres, like Dehradun, Bhopal and Hubli, according to the Housing Start-Up Index (HSUI), which was released on Monday.

HSUI, an indicator of volume of construction in the housing sector during a certain period, covered 27 cities across the country between 2009 and 2011. The index will cover 300 cities soon. The first-of-its-kind initiative is a critical indicator of economic growth in sectors like banking, mortgage, labour, steel, cement and paint.

India has joined a club of six developed countries – Canada, US, Japan, France, Australia and New Zealand – which have a housing start-up index.

The index showed a declining trend in the real estate sector in million-plus cities, while it indicated an upward movement in smaller cities.

Housing minister Girija Vyas said, “The contribution of realty sector is about 10% of the GDP and, hence, it is a key macroeconomic indicator. It will help both the private and the government sector in assessing economic activities in a region. It will also benefit consumers and promoters.”

She said such trends were useful indicators of the pattern of development in the country, which, in turn, would help policy-makers and administrators understand the future focus and thrust areas not only in terms of housing provision, but all the associated infrastructure and civic amenities required.

There are 254 ancillary sectors which are related to housing sector directly or indirectly like cement and iron. 30 million people are involved in the sector, which has an estimated market size of Rs 2.5 lakh crore.

Source: Times Of India

World’s ultra-rich hold a fifth of their wealth in real estate

The world’s super rich hold a fifth of their wealth in property, estimated at $5,328 billion, while Asia’s ultra-rich have a greater share in real estate, a report says.

According to international real estate advisor Savills, in association with Wealth-X, property accounts for about a fifth of the invested wealth of almost 200,000 ultra-high net worth individuals (UHNWIs) in the world.

Of the total private wealth of $27,770 billion, 19 per cent is held in real estate assets amounting to $5,328 billion, it said.

Europe’s super rich hold the biggest share of all privately owned real estate assets, followed by Asians.
Rich people in Europe hold 31 per cent of their wealth in real estate assets worth $2,391 billion, followed by Asia (27 per cent at $1,800 billion) and the Middle East (26 per cent at $880 billion).

“Global real estate is mostly residential and held by occupiers, but private owners are becoming more important in the world of traded investable property,” according to Yolande Barnes, head of Savills world research.

She said that since the North Atlantic debt crisis of 2008, sovereign wealth funds, wealth management companies, private banks and family offices have stepped into property deals that corporate bankers have deserted.

According to Savills, the total value of the world’s real estate is now around $180 trillion, 72 per cent of which is owner-occupied residential property.

Of the $70 trillion that is ‘investable’ and therefore traded regularly – including $20 trillion of commercial property – over half is being bought by private individuals, companies and organisations.

According to Mykolas D Rambus, CEO of Wealth-X, the UHNW population is expected to grow 22 per cent by 2018 and its combined wealth – currently $27.8 trillion – is expected to total over $36 trillion by 2018.

“This presents huge opportunities for those involved in global real estate investment to create the right product in the right locations,” Rambus said.

About 3 per cent of the world’s total real estate value, or $5.3 trillion, is owned by UHNWIs.

This wealthiest 0.003 per cent of the world’s population has real estate holdings which are worth an average of $26.5 million each, according to the report.

Source: Profit NDTV

40,000 Low Cost Flats to be Built for Urban Poor: Delhi Government

Delhi Government today approved a long-pending proposal to construct around 40,000 low cost flats in the city for distribution among people belonging to economically weaker sections.

The proposal was given a go ahead at a meeting of Delhi Urban Shelter Improvement Board (DUSIB) chaired by Chief Minister Sheila Dikshit.

The flats will be constructed at Savda Ghevra and Bhalswa area of Jahangirpuri. A 100 acre plot is lying vacant at Savda Ghevra while the size of the land at Bhalswa is around 102 acre.

“Around 40,000 flats for urban poor would be developed at these two sites,” said a senior DUSIB official. The DUSIB is the nodal agency for implementing the slum relocation policy.

The meeting also approved four more projects for construction of around 6,200 flats under Rajiv Awas Yojana and in-situ re-development scheme for Jhugi Jhopri clusters in various areas.

It also decided to distribute 14,000 low-cost flats to slum dwellers by September as their constructions have already been completed.

The flats were built by Delhi State Industrial Infrastructure Development Corporation ( DSIIDC) in Bawana, Narela and Bhorgah area with financial assistance from the Union Urban Development Ministry under the JNNURM scheme.

The meeting also gave its nod for construction of a working women hostel at Jhilmil Colony in East Delhi at an estimated cost of Rs 3.74 crore.

“The government is keen to accelerate the pace of allotment of already constructed flats at the earliest. The board has chalked out a schedule to organise camps for different Jhugi Jhopri clusters to determine eligibility of the beneficiaries,” said Dikshit.

In order to make the camps successful, the residents in selected clusters are being informed and educated well-in advance so that they can come prepared with necessary documents.

Officials said around 48,000 flats are under-construction at various sites.

A proposal to construct a commercial-cum-residential complex at Phool Mandi near Town Hall in Central Delhi was also discussed. The complex will come over a plot of around 3 acre which is under possession of the DUSIB.

Source: Real Estate India News