Delayed interest payable even after OC: MAHA RERA

By Staff Reporter

In the matter of Mr. Aditya Gupta and Suparna vs. Shree Sukhtara Developers Pvt. Ltd (Complaint No. CC006000000195686), the complainants above named have filed this complaint seeking reliefs from MahaRERA to direct the respondent to pay interest for the delayed possession to the complainants under the provisions of section 18 of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as ‘RERA’) in respect of their flat bearing no. 4403, situated on the 44th floor in the respondent’s registered project known as “Ruparel Ariana” bearing MahaRERA registration No. P51900003250 located at Mumbai City. The complainants have also prayed for refund of EMI paid by them till the date of possession.

 

Facts of the Case: The complainants’ claim is that they and the respondent had an agreement for sale dated 4th March 2015 in which the complainants agreed to buy the abovementioned apartment in the registered project of the respondent. The respondent was required to transfer possession within 60 months after the commencement certificate date in accordance with clause 41 of the abovementioned agreement for sale. Further, clause 42 of the aforementioned agreement stated that the promoters would be entitled to a reasonable extension of time for offering possession in the event that the completion of the free sale building in which the said premises are located is delayed due to any notices, orders, rules, notifications, or notifications from the government and or competent authorities.

On the other hand, the respondent has denied the allegations made by the complainants by submitting its response to the record on June 23, 2021, in which it claims that, in accordance with the terms of the sale

agreement, possession was to be granted following the completion of the proposed sale building and upon receipt of the necessary occupation certificate. According to the information provided, the commencement certificate was obtained on April 16, 2015, making the possession date of April 16, 2020, subject to a reasonable extension due to the terms agreed upon under clause 42 of the aforementioned agreement, which grants a reasonable extension of time beyond the possession date specified in clause 41 of the aforementioned agreement and is accepted by the complainants themselves.

The complainants claimed that the respondent failed and neglected to transfer ownership of the specified apartment on the scheduled date of possession, and as a result, they sought interest starting from October 1, 2020, taking into account the extension granted by MahaRERA via circular dated May 18, 2020 due to the covid-19 pandemic until September 30, 2020. The respondent verified the payment of the pre-EMI for the house loan up until the date of possession of the complainants’ property in a letter dated 13- 03-2015, according to the complainants’ further allegation that the said flat was reserved under a subvention plan.

 

Order: Considering these facts and circumstances of this case, since the occupancy certificate has already been obtained for the complainant’s flat, the respondent is directed to handover possession of the said flat to the complainants within a period of 15 days subject to payment of outstanding dues payable by the complainants as per the terms and conditions of the agreement for sale and also by adjusting the pre EMI paid by the complainants as agreed by it in it’s letter dated 23th August 2019.

Society Formation and charges till OC to be paid by the Promoter: MAHA RERA

By Staff Reporter

In the case of Nilesh Patil & Others vs. Jayant Baburav Bhadange & Baburav Ganpat Bhadange (Complaint No. CC001000000010125),the complainants have filed this complaint seeking directions from MahaRERA to the respondent to pay the outstanding payment of building utility and provide the completion certificate under the provisions of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as ‘RERA’) in respect of the respondent’s registered project of the respondent known as “Vrindavan” bearing MahaRERA registration No. P51600004972 located at Nashik.

Facts of the case: The complainants have filed this complaint mainly raising following 3 main issues i) the completion certificate has not yet been received, ii) the respondents have not paid common area taxes which is issued in the name of the respondent as though it was responsibility of the respondents to pay the same such as electricity bill, water bill, property maintenance charges and

iii) the building has not been handed over to the allottees. Hence, the complainants have prayed for specific direction to the respondents.

The respondent on the other hand has refuted the claim of the complainants by filing written explanation on record of MahaRERA. It has mainly stated that it has obtained the commencement certificate from the Nashik Municipal Corporation on 27-04-2015 and the civil work has been done as per the building plan.

The respondent further stated that, after construction of the flat the complainants and other allottees requested it to give possession of their flats and accordingly considering the difficulties faced by the complainants and other allottees, the possession of the said flats have been given to the complainant. The respondent further stated that, the said fact was intimated to the complainants at the time of handing over the possession of their flats. Further, it has not used the Corporation water and hence, it is not liable to pay the water bill. In view of these facts, the respondent has prayed for dismissal of the complaint.

From the aforesaid submissions made by both the parties, the MahaRERA has noticed that the complainants have already taken possession of their flats in the year 2018 itself and till date the occupancy certificate has not yet been obtained by the respondent promoter. Further, from the webpage information uploaded by the respondent, it appears that though it has uploaded Architect Certificate Form-4, till date the occupancy certificate has not been obtained for this project, it shows that the project is still incomplete. The respondent promoter is under statutory obligation to obtain the occupancy certificate for this project as provided under section 11(4)(b) of the RERA, and till date the respondent has not complied with the said statutory obligation.

The complainants allottees have taken possession of their flats willingly without the statutory compliances being done by the respondent as cast upon it under RERA. Though the complainants allottees have occupied their respective flats in the said project, however, the said possession is not legal possession in the eyes of law. Hence, the MahaRERA is of the view that till the respondent complied with its statutory obligation to obtain OC, it is liable to maintain the said building at its own cost. Needless to state here that after OC, the respondent shall handover the said project to the society, who thereafter shall be liable to maintain the said building.

Order: In an order dated 12th April 2022, the respondent promoter directed to obtain occupancy certificate for this project within a period of 3 months from the date of this order. The respondent promoter shall also take appropriate steps from formation of society as required under section 11(4) (e) of the RERA and handover this project to the said society by obtaining OC. Till the date of obtaining OC, the respondent shall be liable to pay the outgoing charges towards the maintenance of the said building towards the property tax/water bill etc.

PM to inaugurate India Urban Housing Conclave 2022 in Rajkot

By Staff Reporter

Prime Minister Shri Narendra Modi will inaugurate ‘Indian Urban Housing Conclave-2022’ (IUHC2022) a three-day event being organised by Ministry of Housing and Urban Affairs (MoHUA), Government of India from 19-21 October 2022 at Rajkot, Gujarat. Hon’ble Union Minister of Housing and Urban Affairs; and Petroleum and Natural Gas, Shri Hardeep S Puri, Hon’ble Minister of State for Housing and Urban Affairs, Shri Kaushal Kishore and other dignitaries from Centre and States will also grace the occasion. Apart from PMAY-U, other Urban Missions viz. Swachh Bharat Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart Cities Mission, Urban Transport, Deendayal Antyodaya Yojana National Urban Livelihoods Mission (NULM), SVANidhi etc. being implemented by MoHUA will participate in the event.

‘Indian Urban Housing Conclave’ will provide a platform to all stakeholders to demonstrate their technologies as well as deliberate upon various options of technologies, materials and processes for large scale adoption and mainstreaming in different type of housing construction suitable for different Geo-climatic regions of the country.  It will create enabling eco-system for further adoption by Public/Private Agencies, R&D and Technical Institutions, Construction Agencies, Developers, Contractors, Start-ups and other stakeholders. Further, beneficiaries (house owners) will have access to innovative, rapid and cost-effective construction technologies and materials for use. It will also help devising strategies, action plan and roadmap for achieving the vision of “Future Ready Urban India” focussed on urban housing during the ‘Amrit Kaal’.

The event will be organised in physical as well as virtual mode with webcasting and live streaming. The event consists of following components:

  1. Inauguration of Light House Project (LHP) Rajkot, Gujarat: The LHP at Rajkot, is one of the 6 LHPS being constructed by MoHUA in 6 States using globally proven innovative construction technologies. The LHP Rajkot is complete in all respect. In this project, ‘Monolithic Concrete Construction using Tunnel Formwork’, a global innovative technology from France has been used for construction of 1,144 houses which ensures rapid construction, durability, low maintenance and is resource-efficient and disaster-resilient. The LHP Rajkot will be inaugurated and handed over to the beneficiaries by the Hon’ble Prime Minister during the event. In addition, various publications, compendiums, books will be released.
  2. National Exhibition on Innovative construction practices: An exhibition on Innovative building materials, construction technologies & processes will be set up where global and domestic exhibitors will showcase the prototype models on new and innovative construction technologies/materials. Technology providers from across the globe, domestic indigenous technologies, potential future technologies (start-ups) from the country have been invited through a simple online screening process. A Technical Evaluation Committee (TEC) constituted for GHTC-India will evaluate and assess their suitability in Indian context. More than 200 technology providers are expected to showcase their products.
  3. Exhibition on best practices adopted by States/UTs under PMAY-U including Gujarat: The PMAY-U Mission promotes cooperative federalism. The States/UTs have innovated their implementation structure as per the local context such as adopting innovative construction practices, convergence of PMAY-U with other housing schemes, livelihood programs, providing housing to special groups, etc. The exhibition aims to showcase such efforts of States/UTs including Gujarat in the successful implementation of PMAY-U along with the achievements of urban missions and their roadmap/action plan for driving the economic growth, transforming lives of people and improving ‘ease of living’.
  4. Deliberations on Affordable Housing Discourses: Various dialogues, thematic sessions, roundtable discussions will be conducted with stakeholders consisting of national and international experts to discuss, share and learn the progress in transforming urban landscape to take resolve for future urban development in improving ‘Ease of Living’. It will also be participated by MoHUA/State/UT officials, academia, civil society organisations and other stakeholders.
  5. Felicitation of PMAY(U) Awards 2021: In order to recognize the outstanding contribution by States, UTs and ULBs, MoHUA has introduced annual awards for excellence in implementation of PMAY(U). The winners for PMAY(U) Awards 2021 have been identified and will be felicitated during the event.

MoHUA has been implementing PMAY-U since June 2015 for providing all-weather pucca houses with all basic amenities for all eligible families/ beneficiaries in urban areas of the country. A total of 122.69 lakh houses have been sanctioned under the Scheme; out of which nearly 105 lakh have been grounded for construction and more than 63 lakh have been completed and delivered to the beneficiaries. The Scheme has been extended up to 31st December 2024 to complete all houses sanctioned till 31st March 2022. Within the ambit of the overarching PMAY-U, a Technology Sub-Mission (TSM) has been set up, to facilitate the adoption of innovative, sustainable, eco-friendly and disaster-resilient technologies and building materials for cost effective, speedier and quality construction of houses.

For promoting new and innovative construction technologies and systems, Global Housing Technology Challenge- India (GHTC-India) was initiated in January 2019 with an aim to identify and mainstream globally best available proven construction technologies that are sustainable, green and disaster resilient through a challenge format to bring technology transition in construction sector. Under GHTC-India, a ‘Construction Technology India (CTI) – 2019: Expo-cum-Conference’ was inaugurated by Hon’ble Prime Minister on 2nd March 2019 at Vigyan Bhawan, New Delhi.

Six distinct technologies were selected amongst 54 shortlisted globally best technologies that participated in GHTC-India for constructing six Light House Projects (LHPs) at Indore, Rajkot, Chennai, Ranchi, Agartala and Lucknow. The foundation stone of all 6 LHPs was laid by the Hon’ble Prime Minister on 01.01.2021. Out of the 6 LHPs, LHP Chennai was inaugurated by Hon’ble Prime Minister on 26th May 2022. LHP Rajkot is ready for inauguration. The other four LHPs are at advance stages of construction.

In addition, an ‘Indian Housing Technology Mela’ (IHTM) was organised on 5th October, 2021 in Lucknow, Uttar Pradesh to promote indigenous alternate/sustainable building materials and innovative construction systems/ technologies for low & mid-rise structures for affordable housing in the country. IHTM was inaugurated by Hon’ble Prime Minister. Under IHTM, 84 indigenous innovative technologies, materials and processes were shortlisted.

‘Indian Urban Housing Conclave’ will help in widening the horizon and bringing technology transition in the construction sector for sustainable development. It will also bring together all global and indigenous innovative technologies, materials and process shortlisted under GHTC-India as well as under IHTM including those developed subsequently by various stakeholders across the world and showcase them on a common platform.

“Cities of Tomorrow”: Positive impacts of sustainable and innovation-led urban development showcased

By Staff Reporter

The National Institute of Urban Affairs (NIUA) under the CITIIS program is organising a photography exhibition, titled “Cities of Tomorrow” with the purpose of depicting the positive impacts of sustainable and innovation-driven urban development in India as seen through the lens of the common citizen. The exhibition is the culmination of the “Cities of Tomorrow” photography competition, which was conducted in the 12 Smart Cities where the CITIIS projects are located.

CITIIS (Cities Investment to Innovate, Integrate & Sustain) is a joint program of the Ministry of Housing and Urban Affairs (MoHUA), the French Development Agency (AFD), the European Union (EU), and National Institute of Urban Affairs (NIUA). The program is assisting 12 cities across India – selected through a competitive process – to develop and implement innovative and sustainable urban infrastructure projects. Entries for the competition had been invited from these cities, namely, Agartala, Amaravati, Amritsar, Bhubaneswar, Chennai, Dehradun, Hubballi-Dharwad, Kochi, Puducherry, Surat, Ujjain, and Visakhapatnam.

Participants of the “Cities of Tomorrow” competition were required to interpret and take photographs based on themes corresponding to the focus areas of CITIIS, i.e., Sustainable Mobility, Public Open Spaces, E-Governance and ICT, and Social and Organisational Innovation in Low-Income Settlements. Over 400 entries were received and the winners were selected by a jury comprising renowned photographers Mr Raghu Rai, Ms Ketaki Sheth, and Mr Sounak Banerjee.

The exhibition opening on 3rd October will be graced by H.E. Mr Ugo Astuto, Ambassador of the EU to India and Bhutan, Mr Damien Syed, Deputy Chief of Mission at the French Embassy in India, Mr Bruno Bosle, Country Director for AFD in India, Mr Kunal Kumar, Joint Secretary & Mission Director (Smart Cities Mission), Ministry of Housing and Urban Affairs, Mr Hitesh Vaidya, Director, NIUA, and Mr Raghu Rai, esteemed photographer and chairperson of the competition jury. The winners of the competition will also be felicitated at the event, followed by an exhibition walkthrough.

The winning photographs, as well as a curated selection of other outstanding entries will be on display at the India Habitat Centre, New Delhi from 3rd October to 6th October, 2022.

World Habitat Day 2022 with theme ‘Mind the Gap. Leave No One Behind and No Place Behind’ celebrated

By Staff Reporter

Delivering the keynote address at an event organised to celebrate World Habitat Day 2022 today, Minister for Housing & Urban Affairs and Petroleum & Natural Gas, Shri Hardeep S Puri said that the theme of this years’ World Habitat Day- ‘Mind the Gap. Leave No One Behind and No Place Behind’, serves as a strong reminder that we cannot leave behind any citizen and any place as we build towards a more resilient future.

Ministry of Housing and Urban Affairs (MoHUA) celebrated World Habitat Day 2022 at Vigyan Bhawan today. Shri Hardeep S Puri, Shri Kaushal Kishore, Minister of State, Housing and Urban Affairs, Shri Manoj Joshi, Secretary, MoHUA, Mr. Shombi Sharp, UN Resident Coordinator, UN-Habitat, along with several other dignitaries participated in the event.

Addressing the gathering, Shri Hardeep S Puri said that the pandemic highlighted the problem of growing inequalities, vulnerabilities and challenges in cities and human settlements. It galvanised national and local governments to embark on a transformative path towards achieving the central pledge of the Sustainable Development Goals (SDGs), i.e. ‘leave no one behind’ a reality. In India, that effort took shape in the form of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’.

The theme of World Habitat Day 2022 also resonates deeply with the Gandhian philosophy of ‘Antyodaya se Sarvodaya’. The government’s resolve towards inclusive and equitable development is demonstrated in its flagship urban missions and initiatives., he said.

Referring to the various schemes of Ministry in specific and Government of India in general, the Union Minister that the schemes like Pradhan Matri Awas Yojana (PMAY),  PM SVANidhi scheme, Deendayal Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM), Swachh Bharat Mission have been conceptualised with focus on vulnerable and marginalised sections.

Shri Hardeep S Puri further added that the theme of this year’s World Habitat Day provides us with an opportunity to further discuss these subjects and conceptualise innovations to ensure that ‘No one and No place is left behind’. There can be no doubt that the pandemic, just like climate change, is going to permanently alter India’s urban areas. Historically, such shocks have led to permanent changes in urban landscapes. I believe that under the urban rejuvenation initiated by Prime Minister Modi, India’s self-reliant and productive cities will soon alchemise the socio-economic transformation that India seeks for its citizens.

He expressed confidence that India will be able to make the central pledge of Sustainable Development Goals, i.e. ‘leave no one behind’ a reality by 2030.

Complain to Anti Profiteering Authority if builder deny GST benefits under ITC

By Staff Reporter

The good news for home buyers is that you can now report Anti Profiteering of GST. In Sukhbir Rohila Vs Pyramid Infratech Pvt Ltd (2018) 9 TMI 1107 (NAA); (2018) 97 taxmann. com 379 (NAA), the National Anti Profiteering Authority vide its order dated 18th Sept 2018 has confirmed Anti Profiteering charges on sale of flats and also imposed penalty.

In the instant case, 36 applications were filed alleging that the benefit of Input Tax Credit (ITC) had not been passed on to the Applicants in respect of the construction services supplied by the Respondent.

Often, the seller of Real Estate denies the credits under ITC to the deserving flat buyers on the pretext of not eligible or no accumulation of such credits whereas the resources and tax collected are then used as credits.

Flat buyers now can apply to the National Anti Profiteering Authority for the same with details of tax payments, purchase documents etc. The help line number of the Authority is 011-21400643 and their website is : https://www.naa.gov.in/

Cabinet approves setting up of National Land Monetization Corporation as a Special Purpose Vehicle (SPV) for undertaking surplus land monetization

By Dr. Sanjay Chaturvedi, LLB, PhD

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company with an initial authorized share capital of Rs 5000 crore and paid-up share capital of Rs 150 crore.  NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies.  The proposal is in pursuance of the Budget Announcement for 2021-22.

With monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets.

At present, CPSEs hold considerable surplus, unused and under used non-core assets in the nature of land and buildings.  For CPSEs undergoing strategic disinvestment or closure, monetization of these surplus land and non-core assets is important to unlock their value.  NLMC will support and undertake monetization of these assets.  This will also enable productive utilization of these under-utilized assets to trigger private sector investments, new economic activities, boost local economy and generate financial resources for economic and social infrastructure.

NLMC is also expected to own, hold, manage and monetize surplus land and building assets of CPSEs under closure and the surplus non-core land assets of Government owned CPSEs under strategic disinvestment.  This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government owned CPSEs.  These assets may be transferred to NLMC to hold, manage and monetize these assets.  NLMC will also advise and support other Government entities (including CPSEs) in iden tifying their surplus non-core assets and monetizing them in a professional and efficient manner to generate maximum value realization.  In these cases (e.g., on-going CPSEs and listed CPSEs under strategic disinvestment), NLMC will undertake surplus land asset monetization as an agency function.  It is expected that NLMC will act as a repository of best practices in land monetization, assist and provide technical advice to Government in implementation of asset monetization programme.

NLMC will have necessary technical expertise to professionally manage and monetize land assets on behalf of CPSEs and other Government agencies.  The Board of Directors of NLMC will comprise senior Central Government officers and eminent experts to enable professional operations and management of the company.  The Chairman, non-Government Directors of the NLMC will be appointed through a merit-based selection process.

Recognizing the wide range of specialized skills and expertise required for asset monetization in real estate market research, legal due diligence, valuation, master planning, investment banking, land management etc.  It has been decided to hire professionals from the private sector, similar to other specialized Government companies like National investment and infrastructure Fund (NIIF) and Invest India.  NLMC will be a lean organization with minimal full time staff, hired directly from the market on contract basis.  Flexibility will be provided to the Board of NLMC to hire, pay and retain experienced professionals from the private sector.

Going forward, Department of Public Enterprise, Ministry of Finance, will set up the company and act as its administrative ministry.

Virtual PPP Roadshow organized by Ministry of Housing and Urban Affairs and Invest India

By Dr. Sanjay Chaturvedi, LLB, PhD.

A virtual roadshow to showcase PPP opportunities under the Smart Cities Mission was organised today by the Ministry of Housing and Urban Affairs (MoHUA) and Invest India, the National Investment Promotion and Facilitation agency. This event was the first such investor roadshow providing an opportunity to various Smart City CEOs to directly showcase PPP opportunities from their cities to private investors and start-ups. The opening session was addressed by Mr. Manoj Joshi, Secretary, MoHUA,  Mr. Deepak Bagla, MD & CEO, Invest India, and Mr. Kunal Kumar, Joint Secretary and Mission Director, Smart Cities Mission, MoHUA. Participants included senior officials from Smart Cities, private sector infrastructure and technology companies, and startups.

During the roadshow, the Ministry stressed upon the importance of private sector participation in the progress of the Smart Cities Mission. There is a need for innovative solutions to develop the cities in a smart manner, and with the support of private sector, the Mission had successfully completed 228 PPP projects worth INR 22,000 crore across 60+ cities. It was highlighted to investors that more than 160 PPP early-stage projects worth INR 15,000 crore could benefit from private sector participation, both in terms of investment and development.

The program also highlighted the need for driving continued participation from across the globe and the opportunities hosted on India Investment Grid, the portal developed by Invest India, that has received over 3.5 million views from more than 195 countries, with Smart Cities projects attracting increasing global interest.

PPP opportunities were showcased by CEOs from 10 Smart cities (Ranchi, Nashik, Nagpur, Srinagar, Pune, Gwalior, Imphal, Bilaspur, Shivamogga and Warangal) in 4 sectoral sessions, vis. Urban Transport, Commercial Infrastructure & Hospitality, Education and Energy. The projects covered areas such as market redevelopment, multi-level smart parking, urban mobility, solar power generation, development of multi-modal transport hubs as well as establishment of educational hub.

The audience consisted of established players in the Smart Cities ecosystem as well as new entities looking to foray into this rapidly growing space, with more than 200 attendees from about 100 organizations, including infrastructure and technology companies, start-ups, trade associations, financial investors and multilateral agencies participating in the event.

The roadshow, organised as part of the Azadi ka Amrit Mahotsav activities under MoHUA, sought to provide an impetus to enabling stronger partnerships between the private sector and Smart Cities. More opportunities from Smart Cities can be accessed on India Investment Grid (IIG) (www.indiainvestmentgrid.gov.in), the official discovery platform of Government of India.