Blogs

16.03.2016

The Real Estate (Regulation and Development) Bill 2016

The Real Estate (Regulation and Development) Bill 2016 which inter alia seeks....

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The Real Estate (Regulation and Development) Bill 2016

The Real Estate (Regulation and Development) Bill 2016 which inter alia seeks to promote fair practices in the real estate sector and protect the interests of the consumers by ensuring that home buyers get timely deliveries from builders among other aspects was passed by the Lok Sabha yesterday, i.e. 15th March, 2016.

Few highlights of the provisions under the Bill are as under:

  • State level authorities, i.e. Real Estate Regulatory Authorities would be set up to regulate both residential and commercial transactions in the sector which will ensure timely execution of projects.
  • Promoters shall be required to register their projects with the Regulatory Authorities disclosing project information including but not limited to details of the promoter, project including schedule of implementation, layout plan, land status, status of approvals, and agreements along with details of real estate agents, among others.
  • The Bill also proposes imprisonment of up to three years besides monetary penalties for violation of any rules.
  • As per the provisions of the Bill, builders may not be allowed to advertise anymore and sell homes until all approvals are procured and the project is registered with the relevant Regulatory Authorities. Registration with the relevant Regulatory Authority shall be applicable for the ongoing projects as well.
  • As per the provisions of the Bill, both consumers and developers will now have to pay the same amount of interest for any delays on their part.
  • The Bill also directs the builders to deposit 70% of the money collected from the buyers into a separate account that will be utilized only for construction and payment for land.

In view of the aforementioned, the Bill is also believed to enhance the credibility of the real estate construction industry by promoting transparency, accountability and efficiency in execution of their projects. The same will now be forwarded to the President of India for approval.

16.03.2016

GST To Benefit Realty Sector, Lower Tax Burden

Implementation of the Goods and Services Tax (GST) law will have....

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GST To Benefit Realty Sector, Lower Tax Burden

Implementation of the Goods and Services Tax (GST) law will have a positive impact on the real estate sector with expected reduction in its tax burden.

 

"The enactment of this law will single-handedly solve many of the challenges faced by the real estate sector and will help in pulling the sluggish sector out of its long slumber. Heavy taxes that are being paid currently by the developers will automatically go down by a considerable percentage. Construction costs will also be reduced to some extent and this benefit can be passed on to the customers, thereby spurring home buying.

 

The direct impact of GST on real estate, in terms of tax outflow for developers and consumers, will depend on whether the final GST rate is more or less than the taxes paid currently. Apart from the significant reduction in tax management expenses due to a single unified tax, the compliance costs will go down too.

Disclaimer: This is only for information.

16.03.2016

Big Blow to the Renowned Real Estate Giant "Unitech Ltd"

Renowned Real Estate Giant "UnitechLtd" gets a huge blow from the....

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Big Blow to the Renowned Real Estate Giant "Unitech Ltd"

Renowned Real Estate Giant "UnitechLtd" gets a huge blow from the Hon'ble Supreme Court when the Court directed them to refund an Amount of Rs 15 Crores to its investors in Gurugram (Gurgaon) for delay in completing Housing Projects as per schedule. The Honourable Supreme Court further directed them to deposit an amount of Rs 5 Cr. within 2 Weeks from now and remaining amount of Rs 10 Cr. by end of September,2016.

The Judgement came out heavily on the Real Estate Giant as earlier, more than two dozen home buyers of Unitech's housing projects have approached the National Consumer Disputes Redressal Commission (NCDRC) after the builder failed to give them the possession of the flats as per the schedule.

The Hon'ble Consumer Forum (NCDRC) directed the Real Estate Giant to refund the Money of the home buyers with interest.

The Real Estate giant challenged against the Order of the Hon'ble National Consumer forum in the Hon'ble Supreme Court.  While the appeal was pending the Hon'ble Supreme Court had directed Unitech to deposit an interim penalty of Rs 5 crore, which - contingent on its verdict - would either be given to Unitech's buyers or be returned to the company.

Today, The Real estate giant pleaded that they don't have enough funds to repay and their existing project might be a Non Performing Assets. However the two judge bench did not accept their pleading and ordered the firm would have to refund the investors, and the said amount should be refunded.

Disclaimer: This is only for information.

16.03.2016

The New Master Plan for Gurgaon is a boon for Realty Sector

The new Master Plan 2031 of Gurgaon Manesar Urban Complex has....

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The New Master Plan for Gurgaon is a boon for Realty Sector

The new Master Plan 2031 of Gurgaon Manesar Urban Complex has more room for planned development of residential and commercial setups. In the new plan, the land reserved for special economic zones has been annulled and this land will now be allotted to builders for housing projects, malls, hotels, and office complexes.

This Plan mainly focuses on three different issues: non-grant of licences on the certain land patches in Gurgaon-Manesar Urban Complex (GMUC), de-freezing of the SEZ zone, and relaxation for development of TP (town planning) scheme in Sector 16, Gurgaon.

The new Master Plan-2031 of Gurgaon-Manesar Urban Complex will bring in more areas for infrastructural development.

Disclaimer: This is only for information.

16.03.2016

CCI Imposes penalties upon Cement Companies for Cartelisation

The Competition Commission of India (CCI) has imposed penalties upon 10....

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CCI Imposes penalties upon Cement Companies for Cartelisation

The Competition Commission of India (CCI) has imposed penalties upon 10 cement companies and their trade association i.e. Cement Manufacturers Association (CMA) for cartelisation in the cement industry.

The CCI has ascertained that cement manufacturers are in breach of the provisions of the Competition Act, 2002 which handles anticompetitive agreements including cartels.

While holding the cement companies and CMA in contravention of the Act, it was noted by CCI that the cement companies used the platform provided by CMA and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted production and supplies in the market, contravening the provisions of Section 3(1) read with Section 3(3) (b) of the Act.

Further, CCI also found the cement companies to be acting in concert in fixing prices of cement in contravention of the provisions of Section 3(1) read with Section 3(3) (a) of the Act. 

In addition to the penalty imposed on the Cement manufacturers, a penalty of Rs. 0.73 crore has also been imposed on CMA too. They have also been directed to "cease and desist" from indulging in any activity involving to agreement, understanding or deals on prices, production and supply of cement in the market. The CMA has been asked to extricate itself from:

$. Collecting wholesale and retail prices through the member cement companies; and

$. Passing on information on production and dispatches of cement companies to its members.

 

Disclaimer: This is only for information