(CREDAI-MCHI, NATIONAL, MMR)
25th June 20
CREDAI – MCHI NEWS
1. The Hindu
PMO to look into realty crisis, protect buyers’ interest
The Prime Minister’s Office (PMO) will look into the issues faced by the developer community as well as protect home-buyers’ interests, as delays in completion of projects rise.
The PMO said it will “ensure that projects do not get stalled due to disruptions caused by the Covid-19 pandemic” and flats and homes will be delivered to the buyers, albeit with some delay.
Times Of India
CM Uddhav Thackeray on Wednesday appointed Sanjay Kumar (59) as the new state chief secretary in place of Ajoy Mehta, who retires on June 30. Thackeray, however, has appointed Ajoy Mehta as principal advisor to the CM from July 1.
Sanjay Kumar’s appointment, sources said, is based on seniority. An IAS officer of the 1984 batch, Sanjay Kumar has been additional chief secretary (housing) from December 2, 2016, while he has also been holding additional charge of the home department since December 2, 2018. He is set to retire on February 28, 2021.
Many senior bureaucrats were surprised by Sanjay Kumar’s appointment as it was believed in the corridors of power that Mehta would either get one more extension or the CM would choose additional chief secretary Sitaram Kunte, a Marathi-speaking bureaucrat. Controversial exmunicipal commissioner Praveen Pardeshi too was in the race, but the CM chose the low-profile Sanjay Kumar.
Times of India
Its income crippled by the pandemic, the Maharashtra government has deferred this year’s payout of the 7th Pay Commission’s arrears to its employees by one year, reports Priyanka Kakodkar. The Rs 5,000 crore payout was due on July 1. This would have been the second instalment of the payment which began last year.
Officials say owing to the pandemic, the state’s tax kitty is likely to reduce by as much as 42-45%. The revenue gap in the first quarter from April to June is around Rs 30,000 crore. Borrowings amount to around Rs 25,000 crore, a senior official said.
Liquor boosts Maha revenue, but no major improvement in GST, stamp duty collections
Given the reduction in the state’s income, deferring the payment of arrears was the only option. Already in three months this year, the borrowings are almost half the amount in the entire twelve months of 2019-20,” the official said.
Slowly but surely, the real estate sector is beginning to see a reverse migration, and city developers are even ready to fly in their trusted workers to ensure their projects run on planned timelines.
South Mumbai developer Avighna Group flew in 58 of its constriction workers originally deployed at their Worli construction site on a single IndiGo flight on June 22 from Bagdogra in West Bengal. The workers resumed work at the site at Worli Naka from Tuesday with adequate safety protocols.
Avighna Group had offered to make all arrangements at the site and agreed to pay the wages to the workers, but some 80 of them had left for their villages in Bihar on the Bihar-West Bengal border.
Have property prices bottomed out in Mumbai? Here’s what data reveals
Having gone through a downturn, property prices seem to have finally bottomed out in most of the top cities in India, including the Mumbai Metropolitan Region (MMR), as they remained more or less stagnant since the last five years. Before COVID-19 gripped Indian cities, it was widely anticipated that average property prices would finally see some increase in 2020, but the pandemic derailed this probability.
Instead, some developers are giving further discounts and offers to attract buyers to overcome issues of inventory pile-up, cost overruns, among others. It’s almost as if the festive season has come early. Hence, there couldn’t be a better time than ‘now’ to purchase a property, provided the buyer’s financial health is strong.
Maharashtra Allows Online Registration Of Property Sale Agreements
The Maharashtra government has allowed builders and homebuyers to register sale agreements of properties online in a bid to revive the property market that’s been battered by the coronavirus lockdown. “We’re working on infrastructure for this new online system. NIC (National Informatics Centre) Pune is working on the software and it should be ready in 15-20 days,” Omprakash Deshmukh, the state inspector general of stamps and registration, told BloombergQuint over the phone. “Once ready, agreement for sale of properties could be registered online from the builder’s office.”
MUMBAI: A BJP MP has urged the civic body of Greater Mumbai to start processing files of stalled building proposals in suburban Mumbai and the island city.
More than 135 files have been awaiting clearance since the end of March, when the lockdown was announced, BJP MP Gopal Shetty said in a letter addressed to Iqbal Chahal, commissioner of the Municipal Corporation of Greater Mumbai. Most of these proposals pertain to redevelopment projects that have come to a standstill, impacting the lives of tenants.
BANK, FINANCE NEWS
THE ECONOMIC TIMES
Cooperative Banks Brought Under RBI Supervision
The Cabinet on Wednesday approved a slew of proposals, including an ordinance bringing cooperative banks under supervisory powers of the Reserve Bank of India and a ₹1,542-crore interest subvention scheme in micro loans.
The Cabinet also cleared a ₹15,000-crore fund for animal husbandry announced as part of Atmanirbhar Bharat Abhiyan stimulus package, and approved already-announced reforms in the space sector to boost private sector participation, and upgrade of Kushinagar airport in Uttar Pradesh to international.
Following the cabinet decision, 1,482 urban cooperative banks and 58 multi-state cooperative banks will come under the central bank’s oversight, which would mean tighter supervision.
Coop banks to come under RBI watch
new delhi : The Union cabinet on Wednesday approved an ordinance to bring 1,482 urban and 58 multi-state cooperative banks under the supervision of the Reserve Bank of India, a move that will strengthen oversight of the lenders and prevent a Punjab and Maharashtra Cooperative (PMC) Bank-like fraud.
“Depositors will get protection and benefit out of it. It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe,” information and broadcasting minister Prakash Javadekar told reporters on Wednesday.
THE ECONOMIC TIMES
Blackstone Sells 8.7% in Embassy REIT for $300m
Mumbai: The Blackstone Group raised over $300 million (₹2,270 crore) by selling an 8.7% stake in Embassy Office Parks REIT through block deals.
About 14 investors, including domestic and global funds such as CI Investments, Capital Group and Nomura Asset Management, picked up the US private equity firm’s stake in India’s maiden and only listed REIT. Some investors increased their stake in the REIT through the deals on Wednesday. A Canadian hedge fund is also among the new entities that bought the stake.
“The deal was upsized given the demand for units worth $500 million. The fund earlier planned to raise about $250 million through this transaction,” said one person familiar with the development.
CNBC TV 18
I'm a real estate developer and here's why we can't cut prices
It is no secret that the real estate industry is in trouble. While there are a number of solutions that are doing the round, the most common one, talks about how developers must slash prices in order to jump-start their sales.
Without realising that the problem is not merely a developer problem but an industry level one, it is extremely easy to vilify and scream at the developer and paint him as the demon. But we must realise that the problem is not something that can be solved by developers alone. This is a problem that has its roots not only in historical actions by the developers, but also financial institutions, as well as the government .
Is this the right time to buy property? Find out
Property prices remaining stable, interest rate hovering around 15-year low, and ample ready-to-move-in property or near-completion projects being available in the market are some of the reasons which ideally make it one of the best times to invest in a piece of property. However, amid the turmoil caused by Covid-19, the real estate sales have been impacted, thus making developers as well as the industry a little bit jittery.
COVID crisis: PMO promises to protect homebuyers' interest, look into realtors issues
Mumbai: In all 23 States have extended the RERA deadline by six months and one by nine months for completion of real estate projects as the government has taken steps to protect the interests of home buyers in view of the situation created by COVID19, the PMO said.
Stressing that the homebuyers' interests will be protected in view of the delays in completion of projects arising out of the COVID-triggered lockdowns, the Prime Minister's Office (PMO) has assured that the issues faced by the developer community will also be looked into.
Responding to a direct petition by a Mumbai-based NGO Samachar Foundation seeking the Prime Minister's intervention into the real estate crisis, the PMO explained that the government has taken several measures "to ensure that projects do not get stalled due to disruptions caused by Covid19 pandemic and flats and homes get delivered to the homebuyers albeit with some delay."
Regarding the plea to look into demands from the real estate industry for one-time debt restructuring, reduction of home loan interest rate to 5%, GST input tax credit, the PMO letter, signed by Deputy Secretary Akhil Saxena, told the petitioner that "your valuable suggestions have been noted and appropriate action will be taken."
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