Archive for January 2017

YEIDA starts handing over possession of long delayed plots

According to YEIDA officials, the first letter of possession issued out of 21,000 plots under Residential Plot Scheme-2009 was handed over to Sushil Gupta.

YEIDA starts handing over possession of long delayed plotsGREATER NOIDA: Nearly seven years after they were allotted land by the Yamuna Expressway Industrial Development Authority (YEIDA), relief is in store for about 21,000 individual allottees. The first lot of 55 allottees has been issued possession letters by the Authority. As per officials, another 1600 plots owners will be handed over possession by mid-2017, while 4800 a year later.

According to YEIDA officials, the first letter of possession issued out of 21,000 plots under Residential Plot Scheme-2009 was handed over to Sushil Gupta.

“Of the 55 plots, twenty owners of 4,000 square meter plots and thirty-five owners of 2,000 square meter plots have been given the possession letters. These plots are located in A and B blocks of sector 20 of YEIDA,” said Amarnath Upadhyay, Additional CEO (ACEO), YEIDA. “We are working on handing over possession of block I, J, U and T, which totals about 1633 plots in the next few months. These plots measure 300 and 500 square meters and are located in sectors 18 and 20,” he explained. Officials further said another 4833 developed plots will be delivered to owners by end of 2017 and middle of year 2018.

As per YEIDA officials, allottees are facing a delay in securing possession of their plots due to farmer agitations. Farmers of nearly 77 villages in the area have been agitating for a hiked compensation of 64.7 percent for their acquired lands. In August 2014, the Uttar Pradesh government had directed YEIDA to pay enhanced compensation to farmers.

YEIDA had then started disbursement of the enhanced compensation. “It is our priority to hand over possession of land to our allottees,” said Arun Vir Singh, CEO, YEIDA. “So far we have already distributed about Rs 300 rore to farmers and taken possession of land in sector 20 of the YEIDA area. We are in the process of taking over possession of sector 18, which has nearly 7000 allotted plots,” Singh told TOI. “Our attempt is to fuel development and habitation in the area and hence are in the process of expediting possession to allottees and distribution of compensation to farmers,” he added.

DISCLAIMER
The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Bank of India revises lending rates on retail loans

The rate on home loans has been lowered to 8.65 % for women borrowers, while for others the rate has been set at 8.70 %.

Bank of India revises lending rates on retail loansMUMBAI: State-run Bank of India today said it has decided to reduce its interest rates on retail loans, including home and vehicle loans, with effect from today.

The bank earlier reduced its minimum lending rates or marginal cost of funds based lending rates (MCLR) by up to 90 basis points, effective January 7, it said in a release here.

“The revision in rate of interest on retail loans is a consequence of reduction in MCLR,” it said.

The rate on home loans has been lowered to 8.65 % for women borrowers, while for others the rate has been set at 8.70 %.

The bank has reduced the interest rates for vehicle loans to 9.35 per cent.

For loan against property, the new rates are set in the range of 10.50-11 per cent.

The rates for women borrowers will be 0.5 per cent lower than the others, the bank said.

Many banks like State Bank of India, Bank of Baroda, ICICI Bank, HDFC Bank and others have reduced their lending rates after they were flushed with funds following the government’s move to demonetise high currency notes on November 8 last year.

DISCLAIMER
The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Home loans are becoming cheaper: Should you buy or rent a house?

ArthaYantra Buy Vs Rent Report 2017 looks at 12 cities across India to map where buying is affordable and where living on rent is more cost-effective.

Home loans are becoming cheaper-Should you buy or rent a house?With the new year ushering in cheaper home loans, we study the ArthaYantra Buy Vs Rent Report 2017 that looks at 12 cities across India to map where buying is affordable and where living on rent is more cost-effective.

How rents compare with property prices?
The key parameter in determining whether to buy or rent a home is property cost vis-à-vis rental value.
Home loans are becoming cheaper-Should you buy or rent a house?
Assumptions
1. Sale price and rentals are for a ready-to-occupy 1,000 sq ft property.
2. Baseline gross annual income considered is Rs 8 lakh.
3. 20% of the cost of the house is considered down payment.
4. Home loan tenure considered is 15 years, at an interest rate of 9.25% per annum.
5. Average savings to buy a home is considered 25% of one’s annual income.
6. 50% of monthly take home salary is considered as EMI payable.
7. 1.5% of the property value is payable as property tax.
8. Rental security deposit varies city to city.

The Arthayantra Buy Vs Rent Score
The score determines the pros and cons of buying or renting a property in every city.
The Arthayantra Buy Vs Rent Score
The Arthayantra Score Recommendation

How many sq ft will Rs 1 lakh buy?
Buying a house is a big financial decision, and the buyer should ensure he gets the best value for money.
How many sq ft will Rs 1 lakh buy?
How many sq ft will Rs 1 lakh buy?

Prices, rents have changed over the year
While property prices and rentals have fallen in Delhi, Hyderabad, Chennai and Pune have witnessed a rise in both.
Change in Prices & Rents over the year

What you should do if you are in

Bengaluru
Though property prices and rents have fallen, it makes more sense to rent for households with annual incomes of up to Rs 12 lakh.

Chennai
It is the third most expensive city to buy a house in. For those with an annual income of up to Rs 16 lakh, renting is recommended.

Delhi-NCR
The second most expensive location to buy or rent a house. Renting is recommended for households with an annual income of up to Rs 16 lakh.

Hyderabad
If you consider the EMI vs. rent ratio, it is the best destination for buying a house in.

Mumbai
The costliest city to buy or rent. Renting recommended for those earning up to Rs 25 lakh per annum.

Kolkata
An affordable city to rent or buy in. Those with an annual income over Rs 15 lakh can buy a house.

Pune
Prices are comparable to those of Bangalore. Households with an annual income of up to Rs 14 lakh should rent a house.

Ahmedabad
An affordable property market. Those earning less than Rs 8 lakh a year should rent.

Indore
The most affordable city to buy or rent a house in. Anyone earning more than Rs 8 lakh a year can afford to buy a house.

Kochi
Costliest among the new entries. Households with income of up to Rs 8 lakh should choose to rent a house instead of buying.

Lucknow
As rents are low, those earning less than Rs 8 lakh a year should take homes on rent.

Jaipur
Another city with low rents. Households earning up to Rs 8 lakh a year would be better off renting a house.

DISCLAIMER
The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Builder liable to pay for unapproved space use

A developer can be held liable for such unauthorized or excess use of FSI.

Builder liable to pay for unapproved space useMUMBAI: Many builders try to exploit the maximum available FSI, often traversing beyond legally permissible limits or the entitlement under an agreement. A developer can be held liable for such unauthorized or excess use of FSI.

Case Study: Khandelwal Friends CHS had two buildings comprising 20 flats and four garages on 17th Road, Khar, in Mumbai. As the building had become old and dilapidated, the society entered into a development agreement with Orra Realtors Pvt. Ltd. The agreement provided that each existing member of the society would be provided 35% additional carpet area free of cost which would include balconies but excluded the flower beds. Beyond this area, members could purchase additional space at Rs 21,000 per sqft. The developer also agreed to pay to each member a calculated sum of Rs 100 per month per sqft. of the existing carpet area towards compensation for acquiring alternative accommodation while the buildings were being redeveloped.

The projected construction time was 24 months after issuance of the commencement certificate by the municipal corporation. If the project was delayed, and possession along with the occupancy certificate was not given in time, the developer would pay enhanced compensation at Rs 125 per sqft.

The developer failed to adhere to the time period stipulated in the agreement. He also started coercing members into accepting possession without the occupancy certificate by threatening to discontinue the payment for alternative accommodation. Aggrieved, the society filed a complaint before the National Commission seeking a direction to the builder to procure the occupation certificate, and continue paying compensation or rent for alternative accommodation till such time as legal and valid possession would be given. The society also sought a direction to the builder to bear all the statutory dues and taxes. It also claimed that the developer had used the fungible FSI without paying the municipal corporation for its use. Additionally, compensation for delay and costs of litigation were also claimed.

The developer contested the complaint and challenged its maintainability, contending that the society was not a consumer as the agreement was on a “principal to principal” basis. The National Commission rejected this argument, stating that such a clause would not make any difference as the developer was rendering housing construction service for which the consideration was the permission to use the FSI available as per the development agreement.

The Commission observed that the commencement certificate was obtained on April 9, 2010, but the project was delayed beyond two years, and the occupancy certificate had not been obtained. This was held to be a deficiency in service.

Accordingly, by its order of January 3, delivered by Justice V K Jain, the National Commission directed the developer to obtain the occupancy certificate at its owns cost within six months from the date of the order. The remaining members of the society who had not yet taken possession would be offered possession after the receipt of the occupancy certificate. The Commission held that the members would be entitled to compensation for the delay, computed at Rs 125 per sqft. of the original carpet area as specified in the development agreement. The developer was also ordered to pay Rs 5 crore to the society for utilizing the fungible FSI, along with 8% interest from June 1, 2015. Additionally, Rs 25,000 was to be given by the builder towards litigation costs.

Conclusion: A society which is shortchanged by a developer can claim suitable compensation.

(The author is a consumer activist and has won the Govt. of India’s National Youth Award for Consumer Protection. His email is jehangir.gai.columnist@outlook.in

DISCLAIMER
The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

CCI again asks DLF to ‘cease and desist’ from unfair business ways

Competition Commission of India (CCI), in the order dated January 4, has decided not to penalise the company since a fine had already been imposed on it

CCI again asks DLF to cease and desist from unfair business waysNEW DELHI: Coming in the crosshairs of competition regulations again, CCI has directed DLF to “cease and desist” from unfair business practices.

The latest order has come after a detailed investigation into complaints that DLF indulged in anti-competitive practices with regard to certain projects in Gurgaon, Haryana.

Competition Commission of India (CCI), in the order dated January 4, has decided not to penalise the company since a fine had already been imposed on it.

Noting that the DLF group holds a dominant position in the relevant market, CCI has directed the group to “cease and desist from indulging in the conduct which is found to be unfair and abusive in terms of the provisions of Section 4 of the Act”.

Section 4 of the Competition Act pertains to abuse of dominant position.

‘Provision of services for development/ sale of residential apartments in Gurgaon’ was considered as the relevant market.

On certain previous occasions also, the watchdog had directed the company not to indulge in unfair business practices.

CCI has now directed DLF Gurgaon Home Developers Pvt Ltd and its group companies to refrain from unfair trade ways but did not impose any fresh monetary penalty. It was alleged that the entity abused the dominant position by imposing highly arbitrary and unfair conditions on apartment buyers at a project in Gurgaon.

Two separate complaints, filed in 2014 and 2015, were clubbed by the regulator which had ordered a detailed probe by its Director General (DG).

“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,” the order said.

In 2011, the regulator imposed a fine of Rs 630 crore on DLF after founding violation of competition norms following a complaint by Belaire Owners’ Association in Gurgaon. The fine has been challenged by the company.

With regard to the latest case, the DG found merit in the allegations of abuse of dominance including compulsorily purchase of the parking space and one-sided agreement tilted in favour of DLF.

After taking into consideration 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”.

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, CCI said.

“The Commission is of the view that the terms and conditions imposed on the allottees in the instant matters as analysed by the DG in detail are abusive in nature,” it added.

DISCLAIMER
The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

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