Mihan is yet to be paid for land for Mahametro

Apr 4,2019 / By Prahalad Singh / No Comment

Mihan is yet to be paid for land for Mahametro:

Maharashtra Airport Development Company (MADC) developing the Mihan project has to collect over Rs252 crore from entities allotted land in the Special Economic Zone (SEZ) and non-SEZ parts of Mihan.

In the meanwhile, hopes of economic growth tied with Mihan project, 21 out of 112 investors allotted land in the area have not paid up their dues.

The highest amount is owed by MahaMetro (former Nagpur Metro Rail Corporation) which was granted 92 acres. MADC has not yet received Rs91 crore towards land cost from MahaMetro.

MahaMetro has been allotted land two years ago in the non-SEZ area for setting up a station and a township but no amount has been paid to MADC since.

A MahaMetro spokesperson confirmed that the amount was pending but the said payment was to be done through book adjustment. The state government has to pay the amount into MADC’s account. Once the book adjustment is done, the amount would be available in MADC’s overall funds.

Other organizations whose funds are due in the non-SEZ area to have been allotted land in the limit of 1 to 2 acres. There are 36 investors in the non-SEZ area out of which 5 have not paid their dues towards the land cost. The total pending dues from allottees in the non-SEZ area reach at Rs97 crore.

Patanjali Group is the biggest and the only investor in the non-SEZ part who has cleared all its dues and its unit is under construction.

There are 76 investors in the SEZ area of the Mihan project. Of these, 16 have not paid up their dues, amounting to Rs155 crore and the land has only been allotted to them on paper. They have not yet taken physical possession. The final transfer would happen only after the whole amount is paid. It is expecting that MADC may soon take a decision on eliminating the allotment of these.

On the other hand, there are 40 investors in the SEZ who have not yet started their project even after paying the whole amount for the land.

Image Credit – Reacho

List of approved projects and agents – Maharashtra RERA

Apr 4,2019 / By Prahalad Singh / No Comment

MAHARASHTRA RERA:

Maharashtra was among the few states to come up with a RERA Act’s website in its initial phase of implementation.

As per the information available on the MAHA RERA website, the total projects that are registered on the website are 19625. Among them, 3652 projects are registered and completed and 15826 are ongoing projects and 147 projects are yet to be registered on the website. Over 18% of the projects registered with MahaRERA are now complete.

The state has recorded 18505 agents have applied for registration over 18419 agents have been registered. 86 agents yet to be registered.

When it comes to the complaint status, 5,700 complaints have been registered and out of them 3543 have passed their orders and 2157 are in the process of hearing.

As per MahaRERA website, 1716 projects where the penalty is paid between Rs.50, 000 to Rs.10, 00,000 for various reasons.

List of approved agents for Maharashtra RERA: Click here to view

List of approved projects for Maharashtra RERA: Click here to view

Irrespective of these proved projects/agents, RERA has rejected several real estate projects as well.

Latest update about MahaRERA releasing an SOP to remove delaying developers:

Recently, the Maharashtra Real Estate Regulatory Authority (MahaRERA) issued a standard operating procedure (SOP). Under this procedure, homebuyers are eligible to dismiss a developer in the case the project was delayed. The project would then be allocated to an expert panel for completion. The expert also clarified that action could be taken only against non-litigated projects. This procedure will help complete all delayed projects in the state.

Disclaimer: the data provided here is based on industry and news reports. CommonFloor will not be held legally responsible for any action taken based on the information provided.

RBI monetary policy: Central banks likely to cut the repo rate by 25 bps again as three-day policy meeting ends on Thursday

Apr 3,2019 / By Prahalad Singh / No Comment

The Reserve Bank of India (RBI), after a gap of 18 months, had reduced the Repo Rate by 25 basis points in February. A back-to-back cut in interest rate would provide ease to borrowers. It is expecting that the Reserve Bank of India (RBI) will cut rates for a 2nd consecutive time when its 3-day policy meeting finishes on Thursday.

The 6-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das who was appointed as the new RBI Governor in December, will announce the intention of the meeting at around Thursday noon.

Das has already carried meetings with stakeholders including industry bodies, MSME representatives, bankers, and depositors association. It would be the first bi-monthly monetary policy of this financial year (2019-20).

According to the rating firm ICRA, the RBI could go for a 25 bps rate cut in the current meeting of the monetary policy committee.

Industry Experts views
Industry and experts are assuming that the regulator of the banking sector to cut the key lending rate at which it lends to commercial banks by 0.25% with respect to increase the economic activities as doubts rise high about global economic slowdown which can impact India’s growth outlooks.

According to industry estimates, inflation is considerably below the RBI’s mandate of 4% and therefore it should cut the repo rate (the rate at which RBI lends to banks) to raise economic growth.

As per Director General of CII Chandrajit Banerjee, weaken in the growth in the 2nd half of 2018-19, it is requested that the RBI should reduce the Repo Rate by at least 25 basis points in the future policy and maintain a relieving course in monetary policy.

Banerjee further said that the rate cut should be transferred to banks effectively, a reduction in the cash reserve ratio (CRR) is also advised so that it enables banks cash for lending targets.

Softened performance of the manufacturing sector, particularly capital and consumer goods, had lowered the growth in industrial production to 1.7% in January from 7.5% a year ago.

Retail inflation based on the Consumer Price Index (CPI) continues to below 4%. It was 2.57% in February year-on-year.

Economists expect that the RBI should execute at least one more cut after this month’s meeting, which would take the repo rate to its lowest since 2010.

Inflation has continued below the RBI’s 4% target for 7-months and was expected to average 4.0% this financial year.

Pics Credit – ZEENEWS

No Hike in Ready Reckoner Rates in Maharashtra, India

Apr 2,2019 / By Prahalad Singh / No Comment

Ready Reckoner Rates in Maharashtra:

For the 3rd year in a row, the Maharashtra Government has decided to keep the present ready reckoner rates unchanged due to slow down in the realty market. The Inspector General of Stamps and Registration Office, Pune has sent a circular to all the offices of Deputy Inspector General of Stamps and Registration Department in the State to maintain the old ready reckoner rates and register property and documents as per old rates. Though the Registrar of Stamps had suggested a nominal hike in the ready reckoner rates, the State Government issued a clear direction on it asking the authority to continue with the old ready reckoner rates.

What is ready reckoner rates?

Ready Reckoner rates are the rates of the residential, commercial or plotting property for a given area and are issued and regulated by the respective state government. These rates are regularly updated on a yearly basis depending on the plan of the government for such price changes.

The 2017-18 rates will continue to apply this financial year as well and will be effective from April 1, 2019. As a matter of fact, the earlier hike in ready reckoner rates which was even more than the existing market price of land and flats also headed to a decline in transactions. Despite the land prices saw a drop, due to the lack of buyers with deep pockets and strict norms of financial institutions to provide the easy loan to realtors, the ready reckoner rates were not changed and continued on the higher side. As a result, there was a huge demand from the realtors and developers to reduce the ready reckoner rates and bring them in a match with market facts.

According to most builders, existing rates are not as affordable as the market, It is inactive for the last two-three years. In some areas, the land and flat prices are really going down and these rates must be made more reliable. According to some property experts, linking of property purchase with Income Tax has created a problem for the buyers as they have to pay tax on the difference amount of ready reckoner rates and actual buying rates.

As per Mumbai’s leading builder/developer Hiranandani, those areas where the rates have actually fallen, builders can’t sell their flats at reduced rates since the Income Tax Act doesn’t allow any sale below 5% of the Ready Reckoner Rate for that area. Suppose, the Ready Reckoner Rate in an area is Rs 6,000 but the sale has taken place at Rs 5,500, both buyer and seller still have to pay additional tax on the Rs 500.

With relaxation in GST for affordable housing stock, reduced home loan rates, and unchanged ready reckoner rates, the property market is likely to witness some positive movement during Gudhi Padwa and Akshay Tritiya, considered as the most auspicious period for property transactions.

Revised GST rates lead to a drop in housing prices in Rajasthan

Apr 2,2019 / By Prahalad Singh / No Comment

Housing prices in Rajasthan:

The Goods and Service Tax (GST) Council in its 33rd meeting that has been conducted on 24th February 2019 has made a decision to lower the tax burden reducing GST.

Property prices, which had grown exponentially in the state, are expected to fall, as the GST council’s decision of cutting the tax rate on under-construction properties will be implemented from 1st April 2019.

On the under-construction properties, consumers will now have to pay 5% of goods and service tax (GST), as against the existing 12% while on affordable housing to 1% from the current 8%. GST council has also increased the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq-mt in metros and 90 sq-mt in non-metro cities.

Statistics of buying a flat after GST rate slash

In the present condition, if a buyer buys a flat worth Rs.1 crore, he has to pay approximately 18% as a tax, including registry, stamp duty, and GST, which is a huge amount. Now a buyer will have to pay Rs.5L, instead of Rs.12L as GST Tax. This could prove to be a major relief for the homebuyers.

Similarly, a buyer buying a house falling under the affordable housing scheme class will be benefited considerably too. If a flat cost is Rs.20L (under the affordable housing scheme), the buyer will have to pay Rs.20000 instead of existing Rs.36000. As the bracket of affordable housing is increased to Rs.45L in the GST Council meeting, this will also ease middle-income groups.

Homebuyers believe that this move would bring cheer for them and the Rajasthan real estate market which was facing a slowdown. At the same time, it is expected that the market will recover in the months to come.

On the other hand, the developers believe that the lower tax burden on home buyers is expected to drive demand in the affordable segment which, successively, will keep developers engaged in building more affordable homes.

The decision is expected to help the government as well constantly move towards reaching its target of ‘Housing for All 2022′. Furthermore, the move would also inspire developers to construct houses in the government’s scheme, which are not yet getting takers.

Category : Real Estate News