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Unitech MDs Sanjay & Ajay Chandra sent to judicial custody till April 20

The Unitech promoters were arrested late on Friday by the economic offences wing of the Delhi Police in a case related to delay in delivery of housing project Anthea Floors in Gurugram

Unitech MDs Sanjay and Ajay Chandra sent to judicial custody till April 20NEW DELHI: A Delhi court on Thursday rejected the bail plea of Unitech‘s managing directors Sanjay Chandra and Ajay Chandra and sent them to judicial custody till April 20.

The Unitech promoters were arrested late on Friday by the economic offences wing of the Delhi Police in a case related to delay in delivery of housing project Anthea Floors in Gurugram. They were produced before the Patiala House Court on April 1, which had sent the Unitech promoters to police custody till April 3, which was further extended by three days on the request from the Delhi Police till April 6.

Unitech, however, in its response to the stock exchanges claimed that the managing directors of the company have committed no fraud with any investor and the delay in project delivery is due to the reasons beyond control of the company and recession in the real estate sector.

The builder said the company and its officials have fully co-operated with the authorities, and explained and provided all the supporting documents.

The company also clarified that day to day operations of the company are fully functional.

The accused have been booked under Section 406 of the Indian Penal Court for criminal breach of trust, Section 420 for cheating and Section 120B for criminal conspiracy.

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.

SC to hear Unitech promoters’ fraud case today

The apex court has been hearing from various home buyers, including that of one, Diwakar Mishra, for not getting the flats as promised by the builder

SC to hear Unitech promoters fraud case todayNEW DELHI: The Supreme Court on Thursday will hear the alleged fraud case related to real estate major, Unitech Ltd promoters Ajay Chandra and Sanjay Chandra in connection with its delayed housing projects in Noida and Gurgaon.

The home buyers were not been handed over their flats on time as a result of which several home buyers had knocked the doors of the apex court seeking a direction to the real estate for getting timely possession and compensation.

The apex court has been hearing from various home buyers, including that of one, Diwakar Mishra, for not getting the flats as promised by the builder.

Yesterday, a Delhi court extended the police custody of Ajay Chandra and Sanjay Chandra by three more days.

The Economic Offences Wing sought extension of remand to seize documents from their offices.

Earlier on Saturday, the court granted two-day custody remand of Unitech MD Sanjay Chandra to the Delhi Police, who was arrested by the Economic Offences Wing on late Friday night.

Chandra’s counsel Vijay Agarwal informed that the police had asked for three-day remand but the court granted two-day custody instead.

According to sources, Chandra is accused of duping buyers who had booked flats in his real-estate project in Greater Noida.

Home buyers had accused Unitech of not completing the project and non-payment of their money along with interest.

Allegations are also that Chandra fraudulently took money from his clients and parked it in a shell company, thereby laundering it abroad.

Earlier, Chandra was arrested by the Central Bureau of Investigation (CBI) in the 2G trial.

Chandra had bid and won licence for the Telecom project which he later sold to Norway company Telenor.

 

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.

Real Estate Regulator will impact the way you buy a house

The availability of developer and project information on a RERA website will be useful in many ways

LiveMint | Last Modified: Wed, Apr 05 2017. 06 21 PM IST

Real Estate Regulator will impact the way you buy a house

iStock

 

 

 

It’s been almost a year since the Real Estate Regulatory Act (RERA) was passed by Parliament. Since then we’ve seen the rules being notified by the central government and a few of the states, with a nationwide roll out deadline of 1 May 2017, which is not too far away.

Once the state regulatory authorities are set up, we expect to see information posted by developers on their websites . These might vary from state to state as their governments have framed rules which although follow the central government guidelines but have been tweaked as per their considerations.

From a prospective buyer’s point of view, the availability of developer and project information on a RERA website will be useful in many ways.

So far, a buyer’s primary source of information about a project was whatever that was revealed by the developer’s marketing campaign or other promotional material that might have been handed over to prospective buyers.

However, this information might be limited and in some cases not entirely accurate. RERA makes it obligatory for a developer to reveal a great deal of information about a project that ranges from land ownership details to sizes based on carpet area to delivery deadlines. This being besides clauses that broadly cover penalties for delays as well as a clear definition of how ongoing projects will be listed.

This is one clause which most prospective buyers will look at with keen interest. At present, there are hundreds of projects across the country in various stages of construction, and many among them are close to completion but still have unsold inventory.

We have, over the past year and more, seen a lot of end users actively considering buying into these ready to move unsold inventories. On 1 May when RERA gets functional, a question that will be on every buyer’s mind is whether the property they’re planning to buy is covered by RERA or not. The criteria of being listed under RERA might differ from state to state but a RERA listed under-construction project will sell out faster than a one that isn’t.

Going ahead, developer websites will see information as required by RERA being posted prominently. I expect projects that are RERA-complaint to generate greater buyer interest. In fact, in a year’s time or so, projects will be compared for RERA compatibility. A RERA compatibility index could soon become an important tool for buyers to refer to.

I expect the RERA roll out to impact new project launches positively. Buyers will have complete clarity about a new project, something that was always ambiguous earlier.

With funds marked in an escrow account and project sanction plans and clearances displayed and most importantly delivery schedules mentioned, buyers will feel more confident about investing.

With affordable housing getting a push from the government and being clearly defined now, we’ll see tens of thousands of new buyers entering the market. For these first-time buyers, the presence of RERA mandated details in a developer’s brochure or website will work like a stamp of approval from the government.

It’s interesting to note here that states such as Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Delhi, which see regular launches of real estate projects and attract investor interest have been quick to frame RERA rules.

It shows their eagerness in regulating the real estate sector which in these states provide jobs as well as generate revenues for the government.

We have observed that in countries where real estate is regulated well, buyers take investing decisions much faster and with better clarity. Their decision depends solely on their willingness to invest, and is not based on a determination of a project’s or developer’s credibility, something that is taken care of by a law such as RERA. I expect this to happen in India soon.

Kanika Gupta Shori is chief operating officer at Square Yards

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.

Rent receipts under Income Tax lens

The income tax department now has good reason to insist on proof from the tax payer showing that he is indeed a genuine tenant, staying in the property in question

Rent receipts under Income Tax lensMUMBAI: For as long as anyone can remember, producing fake property rent receipt, often from parents and relatives, has been an easy way to lower tax burden. Such cavalier disregard for tax rule was overlooked by most employers as well as taxman, who possibly felt it was a minor transgression. Perhaps, not anymore.

The income tax department now has good reason to insist on proof from the tax payer showing that he is indeed a genuine tenant, staying in the property in question.

A salaried employee receiving ‘house rent allowance’ from the employer could escape paying tax on at least 60% of this amount by generating sham rent receipt.

However, according to a recent tribunal ruling, the assessing officer can now demand proof – such as leave and licence agreement, letter to the housing co-operative society informing about the tenancy, electricity bill, water bill etc. – in allowing a lower taxable income as computed by a salaried employee.

Precedent Set by ITAT Mumbai 14

“The ITAT (Income Tax Appellate Tribunal) ruling has now laid down the criteria for the assessing officer to consider the claim of a salaried employee and if necessary question its justification. This will put the onus on the salaried class to follow the rules in availing the tax rebate,” said Dilip Lakhani, senior tax advisor, Deloitte Haskins & Sells LLP.

Understandably, none of the required documents are available with salaried employees submitting fake rent receipts. There may not be any actual rent outflow from the person as he may be staying in his family home and collecting a receipt signed by his father. Even if a person is a genuine tenant, the amount mentioned in the receipt may be more than what’s paid. This will not pose a problem if the person receiving the rent is outside the tax net. There are several instances where a person may be staying separately but claiming to pay rent to a relative owning another property in the same city; or, one of member of the family claiming a loan repayment deduction while another submitting a false rent receipt to evade tax.

Given the widespread practice of paying tax on only a small slice of HRA, it’s is unclear how far tax officials would go in questioning such claims and pinning down salaried employees.

However, ITAT Mumbai’s decision to strike down the HRA exemption claim of a salaried individual for rent paid to her mother could set a precedent. “Technology and stricter reporting system may make it easier for the (income tax) department. For instance, there was a time when many never bothered to pay tax on interest earned from bank fixed deposits. Today, it’s almost impossible. In case of HRA exemption, the assessing officer may cross-check whether the address mentioned in the ITR form is the same as the property on which rent is paid,” said a tax officer.

The Tribunal ruling comes a few months after the government’s decision to cap the loss on property bought with borrowed money. Till now, a person paying an interest of, say, Rs 3 lakh on a loan (he took to buy the property) and earning Rs1.2 lakh as rent could show the difference of Rs1.8 lakh as ‘loss’ and set it off against salary income to pay lower tax. In the last Union budget it was laid down that such losses for an individual tax payer cannot exceed Rs 2 lakh.

 

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.

Experts say RERA rules would prevent Unitech-like situations

A court on Monday extended by 3 days the police custody of Sanjay Chandra in an alleged fraud case

Karan Choudhury | Business Standard | April 4, 2017 | Last Updated at 00:55 IST

Experts say RERA rules would prevent Unitech-like situations

Stringent norms under the much-awaited (Regulation and Development) Act, 2016, or RERA, are expected to prevent the recurrence of Unitech-like cases, experts say.

 

The construction firm’s managing directors, and Ajay Chandra, were arrested last week by the Economic Offences Wing (EOW) of the Delhi Police for alleged fraud related to a Gurugram-based project. A Delhi court on Monday extended the police custody of Ltd promoter and by three more days in an alleged fraud case related to a Gurugram-based project.

 

According to EOW sleuths, the Chandras allegedly siphoned Rs 200 crore off the Gurugram project and stashed it in an offshore account. They have also been accused of duping buyers who booked flats in their Greater Noida residential project, to the tune of Rs 35 crore.  Industry experts said rules, such as keeping 70 per cent of sales receipts from customers in an escrow account, would help prevent such cases.

 

“The importance of is to bring in discipline. There is a lack of consumer confidence in the market which has been caused by such cases. Things such as creating an escrow account for every project would help bring back that confidence,” said Samantak Das, chief economist and national director – Research, Knight Frank India.

 

Under the Act, cleared by Parliament in March last year, companies, perceived to be a non-transparent lot, would have to submit various details to the regulator. Violations are likely to attract stringent penalties, which are scaring company owners and even prompting directors on their boards to quit.

 

From small property dealers to board directors of realty firms, all can face punishments under the provisions of Experts say the Act would wipe out the very existence of developers who are inconsistent with deliveries. Developers, however, said should not be enforced retrospectively, or else builders should be given some time to complete projects. “While would help prevent Unitech-like situations, it should either not be enforced retrospectively or builders should be given some time,” said Parveen Jain, President, National Development Council (NAREDCO).

 

EOW sleuths investigating the Chandras said they are trying to ascertain the expenditure on various projects, as the alleged company has not provided the details. Police are also trying to recover the project-related original documents and ascertain the money trail.  According to police, allegedly collected Rs 363 crore from 557 customers and banks. However, the company’s account balance is almost nil.

 

In a reply to stock exchange, said it is business as usual for the developer. “We will be availing appropriate remedy in accordance with law. Since the matter is sub-judice, the company cannot comment further at this stage. But we wish to clarify that day-to-day operations of the company are fully functional. It is our endeavour to deliver apartments to our valuable customers as soon as possible,” it said.

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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.

Unitech MDs Sanjay & Ajay Chandra sent to 2-day police custody

The case relates to Anthea Floors project in Gurugram, whose buyers accused Unitech of not completing the project on time despite collecting funds from customers

Unitech MDs Sanjay and Ajay Chandra sent to 2-day police custodyNEW DELHI: The managing directors of real estate company Unitech Sanjay Chandra and Ajay Chandra were arrested late on Friday by the economic offences wing of the Delhi Police in a case related to delay in delivery of a project in Gurugram.

They were produced before the Patiala House Court today afternoon, which sent the Unitech promoters to police custody till Monday.

The case relates to a project, Anthea Floors, in Gurugram, whose buyers accused them of not completing the project on time despite collecting funds from customers.

The accused have been booked under Section 406 of the Indian Penal Court for criminal breach of trust, Section 420 for cheating and Section 120B for criminal conspiracy.

Unitech declined to comment on the story.

In January last year, Unitech chairman Ramesh Chandra, managing directors Sanjay and Ajay Chandra, and director Minoti Bahri, had to spend a night in jail.

The complaint was filed by chartered accountant Sanjay Kalra and his business partner Devesh Wadhwa, who claimed to have booked a property in Unitech’s Habitat Apartments in Greater Noida but were not given timely possession and the accused had failed to refund their money.

The Supreme Court recently also directed Ramesh Chandra, chairman of real estate firm Unitech, managing directors Ajay Chandra and Sanjay Chandra and all the other directors of the company to be present in the court on May 5, and also asked the builder to submit the final proposal for the completion of its pending projects.

Unitech has been surrounded with a lot of litigations in various courts of law due to delay in their projects. Around 13,000 home buyers in 41 projects of Unitech, primarily in Noida and Gurgaon, are stuck at present.

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.

Yamuna Expressway authority issues show cause notices warning of allotment cancellation to 9 builders

According to YEIDA officials, while notices have been issued to two builders on Thursday, the others were issued the same on Friday

Yamuna Expressway authority issues show cause notices warning of allotment cancellation to 9 buildersGREATER NOIDA: Yamuna Expressway Industrial development Authority (YEIDA) has started issuing show-cause notices for cancellation of nine allotments in its area. The developers, which include 7 group housing builders and 2 institutional, owe the Authority more than Rs 830 crore. They have been asked to act before April 15 or face action from the Authority.

According to YEIDA officials, while notices have been issued to two builders on Thursday, the others were issued the same on Friday. “We have started issuing show-cause notices to the developers as they have not fulfilled their commitments,” said Arunvir Singh, Chief Executive Officer (CEO), YEIDA. “Some have defaulted on the rescheduled payment plan policy offered to them last year. These defaulters were to pay 15% of their pending amount by September 2016. Despite repeated reminders, they have failed to pay up,” he explained. “All the developers have also failed to construct across nearly 450 acres of land as per their agreements and lease deed clauses. Hence we have been left with no choice but to show-cause them and start plot allotment cancellation procedure after April 15 next month,” he told TOI.

Explaining the action, Amarnath Upadhyay, Additional CEO (ACEO), YEIDA said that “After initiating the amnesty scheme, we have received about 25 applications from builders opting for the rescheduled payment plan. As per the plan, property owners had to pay 15% of their outstanding dues besides paying the rest in installments. They also had to pay 15% of the additional compensation amount of 64.7%, which has to be distributed to farmers,” he said.

Officials further said that after land is allotted to developers, registration done and building plans sanctioned, developers have to start construction within a year. In the case of the 9 developers, no construction has been carried out. “These builders had applied for amnesty or re-scheduled payment plans but have failed to deposit their first installment,” Singh explained. “Since we do not want third party rights to be created, we are issuing show-cause notices asking why the plots should not be cancelled. If we do not receive a reply within 15 days, we will go ahead and cancel the allotment,” he warned.

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.

SC asks Parsvnath to give habitable homes with OCs in Lucknow project in 3 weeks

The case relates to Parsvnath Planet project in Gomtinagar, Lucknow, which was launched in 2006 and had to be delivered within 36 months by 2009

SC asks Parsvnath to give habitable homes with OCs in Lucknow project in 3 weeksNEW DELHI: The Supreme Court has directed Parsvnath Developers to give possession of habitable flats along with occupation certificates to 12 home buyers in its Planet project in Lucknow within three weeks.

The Friday order was issued by a bench headed by Justice Dipak Misra. The bench has listed the case for the last week of April for further arguments on the compensation for delay and mental agony, according to lawyer ML Lahoty, who represented the 12 home buyers in the court.

“Possession of flats in habitable condition along with OCs, in a specified time frame were our main demands. The court, agreed with us and directed Parsvnath to do the same within three weeks,” he said.

The case relates to Parsvnath Planet project in Gomti Nagar which was launched in 2006 and had to be delivered within 36 months. The flats in the project were in the Rs 32-35-lakh price range.

“We showed the photographs to the court that the tower in which our clients have their homes was not in a habitable state and they are not able to move in,” Lahoty said.

Parsvnath in its response said, “The company will follow the orders of the Hon’ble Supreme Court. However, the project Parsvnath Planet has a total of 10 towers, out of which the OC for 7 towers has already been received, with more than 150 families residing. The OC for the balance 3 towers has been applied for.”

The 12 home buyers had approached the UP consumer forum in February 2013 after the builder missed the delivery deadline. The forum on February 25, 2015 directed the builder to give possession of the flats by end of 2015 along with compensation for the delay.

After the forum’s deadline passed without delivery, the buyers approached the National Consumer Disputes Redressal Commission (NCDRC), which in January 2016 directed Parsvnath to pay a penalty of Rs 15,000 per month to the complainants with flats in sizes up to 175 sq m, and Rs 20,000 to buyers who had larger flats. Dissatisfied with the judgment, the buyers had approached the Supreme Court for relief.

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.

Jaypee gets YEIDA notice to pay Rs 900 crore dues or lose land

According to Singh, the developer has been defaulting on its instalments for land allotted for the last five years

Jaypee gets YEIDA notice to pay Rs 900 crore dues or lose landGREATER NOIDA: Yamuna Expressway Industrial Development Authority (YEIDA) on Tuesday said that it has issued a final notice to Jaypee Infratech to pay up Rs 900 crore or face cancellation of allotment of 1,000 hectares of land.

Arunvir Singh, chief executive officer (CEO), YEIDA told TOI, “We have issued a show-cause notice asking the developer why the allotment should not be cancelled. If the group fails to clear its dues by April 15, strict action is on the cards, including cancellation of the lease deed.”

According to Singh, the developer has been defaulting on its instalments for land allotted for the last five years. “The land in question was allotted to the developer in three pockets in the YEIDA area for constructing residential units,” he said. “This totals about 1,000 hectares and is located in three pockets including Sector 25 and Jaypee Sports City,” he said. “Owing to the default by the builder, the allottees are suffering. Currently, the builder has not even started construction on the land,” he added.

Singh said that if the developer did not respond satisfactorily within the stipulated time limit after the notice, strict action was on the cards for it. “We will not shy away from cancelling the lease deed of the developer,” he said, adding that the group has to also pay YEIDA an additional Rs 1,200 crore. “This amount has to be disbursed to farmers as hiked compensation for land acquisition in the area. However, this matter is sub judice and is awaiting the appointment of an arbitrator after approval from the state government as the developer has challenged the Allahabad high court direction that farmers be paid enhanced compensation,” Singh said.

When contacted, Jaypee Infratech officials said they were not aware of any notice from YEIDA and refused to comment further on the issue.

Meanwhile, YEIDA is also getting ready to issues show-cause notice to seven more builders in its area. Earlier this month, YEIDA had started the procedure of cancellation of seven allotments of these builders. The developers, which include five group housing builders and two institutional ones, owe the Authority nearly Rs 525 crore. The notices are likely to be issued on Thursday, officials said.

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.

Supertech’s Emerald Towers in Noida will be demolished if built without proper sanction: SC

The towers have 857 apartments, of which about 600 flats have already been sold

Supertech Emerald Towers in Noida will be demolished if built without proper sanctionNEW DELHI: The Supreme Court today said if the two 40-storey residential buildings of Supertech’s Emerald Towers in Noida were constructed without a proper sanction, these would be “demolished”.

“The buildings, if built without a proper sanction, will be demolished,” a bench comprising Justices Dipak Misra and A M Khanwilkar said.

It was hearing pleas against the Allahabad High Court‘s April 11, 2014 verdict ordering demolition of the two 40-storey residential twin towers –Apex and Ceyane — in Noida and directing Supertech to refund money to homebuyers with 14 per cent interest in three months.

The towers have 857 apartments, of which about 600 flats have already been sold.

During the hearing, the court said if the homebuyers, who have invested and want to come out of the project, they can come out of the same.

It said that the investors who want to stay in the project, can do so as the builder has also challenged the high court’s order.

The counsel appearing for Noida authority told the bench that the sanctioned plan for the building was in accordance with the guidelines and it was aggrieved by the high court’s finding in this regard.

Some of the homebuyers claimed that despite the apex court’s direction, they have not been refunded the amount by the builder.

The counsel appearing for the developer countered the submission and said they have given refund to the homebuyers and if anyone files an application for getting back money, it would be dealt within four weeks and the principal amount will be refunded to them.

The court also noted that in pursuance to its earlier order, Rs 5 crore has been deposited by the builder.

It fixed the matter for final hearing on August 9.

The court had earlier asked the National Buildings Construction Corporation (NBCC) to submit its report after inspecting Supertech’s Emerald Towers to ascertain whether the two 40-storey buildings were built in green area in violation of the sanctioned plan.

It had on February 16 last year directed Supertech to refund money to the flat owners, saying, “Developers can’t take investors for a ride.”

Earlier, it had directed Supertech to give back money to flat owners who had sought refund of their investment after the towers were directed to be demolished by the Allahabad High Court.

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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