Tag: Buy Property

Land sharks taking over farmland in Singur, Govt looks the other way

SINGUR: If an alleged sell-off started a historic revolution in Singur, a sell-out now mocks it. Land sharks allegedly protected by two Trinamool Congress leaders are gobbling up large patches of fertile land near the abandoned Tata Nano site.

Driving down Durgapur Expressway these days, you can see these patches of walled-off land. They tell a story no less coercive than the disputed acquisition during the Left Front government. Only this time, it’s worse because the Mamata Banerjee government claims not to see. And unlike the Nano project, where the government is giving a dole to even land labourers, farmers who are being lured/coerced into selling off their land have no one to turn to.

More than a hundred acres have already changed hands between Dankuni and Singur. And this may just be the tip of the iceberg.

The land sharks are breaking every law in the rulebook — and every resistance on the ground. Farmers who refuse to fall for their offers (that never materialize) suddenly see the plots around their farmland being taken up and walled off. Fly ash is dumped on the other plots, which is washed away by rain to adjoining plots, turning them infertile and leaving the farmer with no option but to accept the offer.

Commerce and industries minister Partha Chatterjee claimed innocence. “I am not aware of any such effort in Singur. However, my department will ascertain whether the land has been purchased for industry. In that case, the government won’t allow conversion of multi-crop land,” he said.

Becharam Manna, once a firebrand leader against the acquisition by the Buddhadeb Bhattacharjee government, now sees good reason in the sale of land by poor farmers “for a better price”. Junior agriculture minister in the Mamata cabinet, Becharam says: “All these plots come under the low mono-crop category, fetching little for the owners. As far as I know they yield boro crop only. This could be a reason for the sellout. No one has complained against the purchase.” He insists he “won’t allow anything illegal.” “Land developers have to take permission from authorities before they use it for infrastructure or industry,” he says.

So what is the price on offer? “It’s Rs 40 lakh an acre,” says Sushil Kharkia, spokesman of Shyam Industrial Park, who admits fencing off 50 acres. But farmers have a different story. Primary schoolteacher-cum-farmer Swaraj Ghosh said: “I had five bighas in the fenced area. They gave me Rs 8 lakh for an acre. I had no choice. The land sharks used to come to our place and dictate prices. When some farmers refused to sell their land they dumped fly ash on their land,” said Ghosh.

Compare this with the offer of the Left Front government for the Singur land that Mamata called “forcible acquisition”: Rs 8.9 lakh-Rs 12 lakh compensation per acre, an add-on 50% of the compensation price, plus a government job to each landloser family.

Primary schoolteacher-cum-farmer Swaraj Ghosh said, “The new buyers also promised a job in the warehouses, godowns and the mineral water plant to come up on our land. That was three months ago. They didn’t keep their word.”

The owners of these plots have not even taken permission for conversion in the nature of the agricultural land, which is a must under the West Bengal Land Reforms Act, 1955.

“This is a blatant violation of the West Bengal Land Reforms Act. How could land developers fence the land without taking permission when the Mamata Banerjee government is opposed to illegal conversion of farmland?” said environment activist Kunal Guha Ray. She complained to the Hooghly land and land reforms officer on July 2 that Shyam Industrial Park and SKM Housing Pvt Ltd have gathered 117 acres in five mouzas under Singur and Chanditala police stations. She has mentioned the dag numbers.

“We won’t allow the conversion in the nature of land,” said Hooghly district magistrate Manmit Nanda. Sushil Kharkia is at a loss. “We gathered the land to set up small and medium industry units that the chief minister is harping on. We have built the boundary wall only after registration. Some farmers are unwilling to part with their land that comes within our project area,” he said.

Alarmed by the complaint, police rounded up two land agents from Dankuni and eight persons from Chanditala. “We are investigating the complaints as and when we are getting them and taking steps immediately,” said SP Tanmoy Roy Chowdhury.

Private buyout of land in Singur-Chanditala

1. Two firms have allegedly purchased 117 acres (350 bighas) of agricultural land and wetland

2. Roads have been constructed by filling up wetland with flyash

3. Permission has not been taken for conversion of land

4. Price on offer: Rs 40 lakh an acre, but farmers say it is Rs 8-10 lakh an acre

Acquisition by the Buddhadeb Bhattacharjee government in Singur

1. 997 acres spread over six mouzas in Singur

2. The purpose was to facilitate the setting up of the Tata Nano unit

3. Compensation: Rs 8.9 lakh-Rs 12 lakh per acre, plus 50% of compensation price and a job to each landloser family

Source: The Times of India

More power to the home buyer

Two years after the Union housing ministry came out with a draft bill to regulate the real estate sector, the final bill is ready to be introduced in Parliament during the upcoming Monsoon Session. The keenly-awaited bill, which promises a transparent regime that would uphold the interest of the home buyer, is being seen as a game-changer in a largely unregulated sector, even though some of its provisions have come for some flak from the real estate industry.

Several provisions of the draft bill have been reworked after consultations with states in the Real Estate (Regulation and Development) Bill, 2013, a copy of which was accessed by this newspaper. Analysts have welcomed the move as a necessary pre-condition to professionalising the sector. “Apart from protecting buyers’ interest and bringing in credibility to the developer community, we also see this working positively in terms of attracting investments in the Indian real estate sector,” says Sanjay Dutt, executive MD, South Asia, Cushman & Wakefield.

REGULATOR FOR EACH STATE:

The primary objective of the bill is to form a Real Estate Regulatory Authority in each state to be established by government of the state or union territory. An exception is Delhi, where the regulator would be set up by the union urban development ministry. In its draft version, the bill had envisaged two authorities: one at the state level and the other at the central level. That has been done away with in the final copy. The bill further provides for a common regulatory authority for two states or union territories and also more than one authority within a state. This would make the work load of the regulator more manageable in large states, even as that option rests with the state government.

CARPET AREA THE ONLY BASIS

The bill very clearly defines “carpet area” as the basis that would govern the transaction in any real estate project. It also defines “common areas” as distinct from carpet area. “Standardisation of terminology used in realty transactions usually led to confusion. Introduction of standard definitions will certainly provide ease of understanding. The absence of terminologies such as ‘built-up and ‘super built-up’ will discourage unfair trade practices,” says Bhairav Dalal, associate director, PwC India.

In addition to private sector players, the bill has also brought within its ambit government agencies that promote housing by defining them under the rubric of promoters. Interestingly, there are several cases where the Central Government Employees Welfare Housing Organisation (CGEWHO), an agency under the housing ministry, has been dragged to consumer forums for deficiency in service.

The definition of promoters has been expanded to include buyers/companies who purchase in bulk with an aim to resell later. In some markets, real estate developers rely on channel partners to generate sales, who usually operate under this model. The regulation would cover these entities too. The bill also mandates regulation for all real estate agents, primarily to check the black money trail and also with an intent to ensure professional services to the buyer.

“We welcome the clause proposed for real estate agents to register themselves with the regulator. Home buyers at times tend to get misguided by advertisements put up by developers. As real estate agents it is our responsibility to represent true facts and details for any kind of property transaction or information required by home buyers to make a decision,” says Honey Katiyal, CEO, Investors Clinic, a broker with a pan-India presence and operations in Dubai and Singapore.

REGISTRATION

The minimum plot area that would be governed by regulation has been fixed at 1,000 sq metres and the maximum number of apartments at 12. In its draft avatar, the area was 4,000 sq metres. This would be inclusive of all phases of a development, so developers cannot browbeat the system to escape regulation.

The bill, however, does not mention whether projects prior to enactment would fall within the regulatory regime, although it says that no registration would be required if the builder has got all approvals prior to the commencement of the Act. It also does not cover redevelopment or renovations in cases where the allottees are the same and the project is not marketed as a new one.

With these exceptions, the bill fulfils a long-standing need for transparency by making a developer mandatorily register a project. Once the registration is given, the developer would be given a login and a password on the website of the regulator where the mandatory disclosures have to be made. Some of them are: a commencement certificate to start construction, declaration of clear land title, all approvals, layout plans and development works (external and internal), the pro-forma agreement with the buyer, names of agents, time frame for completion.

The authority is mandated to complete the registration process within 15 days, and if the case may arise, give reasons why registration cannot be granted. If there is no word from the authority within this period, the registration would be deemed to be given. This stipulation would ensure the regulator cannot sit on any application indefinitely. The registration would be valid only for the duration of completion as stated by the builder. Earlier there was a window to extend it by up to two years, but the current bill has made that possible only subject to rules made by the authority. The regulator can also cancel registration subject to the rules.

AGREEMENT AND PAYMENTS

An important provision is for the developer to place 70 per cent of the sum collected from the buyer, or a proportion that the regulator may define, in an escrow account and to be used exclusively towards the construction cost for the project. In addition, the developer can accept a maximum of 10 per cent of the cost on booking from the buyer and only after entering into a sale agreement. Bookings can be cancelled only as per the terms of the agreement, and not unilaterally.

This provision would ensure that developers do not divert funds from one project into another. “The bill will require the developers to invest their own capital and launch only those projects that are well funded and have time-bound construction plans in place. This is a quantum shift which may take time to settle in as a process,” says Dutt.

Developers have reservations on the escrow provision being set at such a high percentage. Lalit Kumar Jain, chairman, Confederation of Real Estate Developers Association of India (Credai) says, “Construction costs vary in different markets. For instance, in prime areas, the cost may be around 30 per cent whereas in suburban areas it could be as high as 80 per cent of the entire cost element. The provision should be based on the ratio of the extent of the construction cost so as to ensure timely completion and prevent fund diversion.”

Buyers, who have usually to depend on assurances from the developer on project completion can now see the status of the project on the regulator’s website as developers would have to post quarterly updates on the construction progress and also the number of bookings done.

If the developer is unable to deliver the project as promised, the authority can compensate the buyers by refunding the money paid with interest. This is the verdict that most consumer forums have given in such a case.

Buyers too, have an obligation under this law to ensure timely payment of their share and cough up interest if they delay. “The Bill works both ways. While it aims to hold the developers accountable, it also looks to ensure that the allottees do not default in making payments. By providing penalties for both the promoters and the allottees, the Bill seeks to ensure that non-compliance is minimal,” says Anuj Puri, chairman and country head, Jones Lang LaSalle India.

GRIEVANCE REDRESSAL

The bill has provided for a robust grievance redressal mechanism with stiff penalties and in extreme cases, imprisonment of the developer. At the first level is the adjudicating officer of the real estate authority who would hear cases and fix penalties. At the second level is the appellate tribunal that would hear appeals on the adjudicating officer’s order. The officer and the tribunal have to decide a case within a specified period.

“Most aggrieved consumers abstain from the hassles of prolonged litigation for obvious reasons. They may now be encouraged to explore the window that will be available under the fast track dispute settlement mechanism,” says Dalal.

Much of the delivery on the goals envisaged in the bill, rests with the states as they would make the rules and administer them, and that would be the test of its efficacy. “The success of this law will be directly proportional to how proactive the real estate authority is. One hopes that it is able to identify the pointers well in advance. Only then will it be successful in achieving the goal of a “transparent realty” in India,” says Dalal.

Source: The Indian Express

Corporator to rope in architect for slum infrastructure

To ensure better planning in slums, a corporator is now roping in an architect to design infrastructure in his ward specific to the local requirement.

BMC, which has provided for additional Rs 100 crore for slum projects, has asked ward offices to appoint consultants to plan such projects. Each corporator in wards dominated by slums has received Rs 15 lakh to Rs 1 crore for improvement of slum infrastructure.

Rais Shaikh, SP corporator from ward 132 in Chembur (east) is in the process of appointing an architect for basic civic infrastructure. “There are major lacunae in the existing infrastructure, especially in slums. For example, the civic administration has set up a drainage system, but there are missing links or broken drains that lead to water flowing back into the homes of slum dwellers,” said Shaikh.

Shaikh said the architect will study, analyse and design infrastructure and bridge the gaps. At present, setting up of infrastructure like drains, public toilets, construction and repair of roads is done by the local ward office. “The architect will also look at the need for green patches,” he said.

“BMC engineers work in isolation while setting up or repairing civic infrastructure. In most cases, it is not well-connected to reach the end-user,” said Shaikh.

Source: The Indian Express

Realty firm alleges fraud, police hunt for developer

BASED on reports by experts in forgery cases, Mahim police are tracing Jitendra Jain, a developer in the western suburbs who, as per a complaint by Vighnaharta Builders, allegedly duped several flat buyers by posing as director of the company.

Vighnaharta Builders had registered a police complaint three months ago that Jain, director of Kamla Landmarc Construction, had duped several people by selling flats at a major project they had begun in central Mumbai.

To lend credibility to his claims, Jain had allegedly forged various documents, including the letterhead of Vighnaharta Builders and duped prospective flat buyers of crores of rupees. “The forgery has been corroborated by experts. A case report has been submitted to the Zonal DCP,” said senior inspector Dashrath Patil.

Police said Jain was aware that Vighnaharta Builders were on the verge of completing legal formalities before starting the project in central Mumbai. Jain allegedly announced the pre-launch booking of the flats at a rate cheaper than actual rates in the area.

“A statement made by Vignaharta Builders says the cheaper rates attracted prospective flat buyers, mostly rich investors, who immediately booked some flats in the two saleable towers that are supposed to be constructed,” said investigating officer Ritesh Aher.

Jain posted the details of the redevelopment project on the website of Kamla Landmarc Construction, naming the project ‘Trident’. “Santosh Mane, director of Vighnaharta Builders, saw the website and approached police,” said Aher.

Jain told Newsline, “I’m totally unaware of any such complaint filed against me.”

When asked about the delay in arresting Jain, DCP (Zone 5) Dhananjay Kulkarni said, “The investigation is in progress.”

Source: The Indian Express