The Yamuna Expressway Industrial Development Authority (YEIDA) completed a survey to assess development work by Jai Prakash Associates Ltd (JAL) on the Jaypee Sports City project, whose land allotment was canceled in 2020 over dues. The survey, following an Allahabad High Court directive, aims to verify JAL's claims of substantial infrastructure investment. In related news, developers owe INR 44,700 crore in Gautam Budh Nagar, with YEIDA's share at INR 4,700 crore. Efforts to revive stalled projects involve agreements with developers like ATS, Greenbay, and Logix, benefiting 4,000 homebuyers through a government scheme.Read more

The Bombay High Court held in Sarfaraz S. Furniturewalla vs Afshan Sharafali Ashok Kumar & Others that tax deducted at source (TDS) should not apply to transit rent/hardship allowance paid by developers to owners/occupants whose building is under redevelopment. While redevelopment benefits many, the tax status of transit rent has been debated for a long time. Developers provide transit rent to facilitate temporary relocation during redevelopment. Tax authorities viewed this as non-taxable, but developers deducted TDS. In this case, Sea Rock Construction sought PAN cards to deduct TDS from transit rent payments. The High Court clarified the difference between rent and transit rent, ruling that transit rent is not income and thus not subject to TDS.Read more

In a landmark judgment, the Supreme Court of India reinforces Article 300A, safeguarding the right to property. The ruling demands fair and transparent procedures in land acquisition, following the case of Birinchi Bihari Shah vs. Kolkata Municipal Corporation. The court outlines seven key procedural safeguards, including notice, hearing, reasoned decisions, and fair compensation, ensuring fairness and preventing arbitrary government actions. Justice Narasimha emphasizes that compensation alone cannot justify bypassing proper procedures. This judgment sets a precedent for future land acquisitions, promoting transparency and fairness nationwide.Read more

The government has proposed holding certain entities accountable for contacting individuals through unregistered phone numbers. Banks, insurance companies, real estate developers, brokers and other organizations may be responsible if they call from numbers not listed with the Telecom Regulatory Authority of India (TRAI). This represents the latest effort to address unsolicited calls, a persistent issue for over two decades despite past initiatives. While TRAI has discussed measures to combat the problem, there have been no clear rules around the sale of personal data used by banks and real estate firms for unwanted calls, often featuring pre-recorded messages.Read more

The Bombay High Court has imposed a fine of INR 5 lakh on developer Lashkaria Housing & Infrastructure for deliberately delaying the implementation of a slum rehabilitation scheme in Jogeshwari (West) for over five to six years. The court upheld the removal of Lashkaria as the developer and directed that the fine amount be paid to Tata Memorial Hospital within eight weeks. The court took exception to the fact that the developer tried to misrepresent that it was appointed to carry out the scheme for three plots housing 432 hutments, when it was only appointed for one plot with 120 hutments, thereby wasting judicial time in ascertaining the details.Read more

The Supreme Court of India has admitted a petition challenging the imposition of Goods and Services Tax (GST) on the transfer of development rights within joint development agreements (JDA) between real estate developers and landowners. The petition argues that development rights transferred as part of a land transaction should not be subjected to GST, as the sale of land is specifically excluded. Previously, the Telangana High Court had dismissed a similar petition. The developer has now approached the Supreme Court seeking relief and the court has sent notices to the central government seeking their response.Read more

Infrastructure lender IL&FS is seeking fresh approval from the Mumbai Metropolitan Region Development Authority (MMRDA) to sell its 10-storey headquarters in Bandra-Kurla Complex, Mumbai to Brookfield Asset Management. The MMRDA had approved subletting but the National Company Law Tribunal has approved an outright sale. IL&FS argues the MMRDA approval differs from what was sought as IL&FS wanted a sale approval. Brookfield says the deal is at an advanced stage with key approvals received and a substantial amount already paid. IL&FS is selling assets to manage debt obligations following its default in September 2018 while Brookfield is seeking to expand its presence in BKC.Read more

The Jodhpur bench of the Rajasthan High Court is exploring how to use technology like Google Earth to monitor construction activities in the ecologically sensitive Aravalli Hills of Udaipur. Fascinated by a study conducted by students of Mohanlal Sukhdiya University leveraging such technology, the court has directed the state government to explain how it can be utilized to demarcate and tag the hills. It also asked the students to continue upgrading their analysis and providing inputs, while directing the Additional Advocate General to assist in outlining the government's technology usage plans for demarcation and addressing violations of hill bylaws.Read more

The Navi Mumbai Municipal Corporation (NMMC) has made structural audits by certified auditors mandatory for housing societies and commercial units over 30 years old before any repair work. This is as per the unified development regulations and Maharashtra Regional and Town Planning Act of 1966. NMMC recently identified 528 structures as unsafe after surveying the city. However, residents have raised concerns that audits will be misused to declare buildings dilapidated and will be sent for redevelopment. They argue that well-maintained buildings can last longer than 30 years. There are also allegations of nexus between officials, builders and ex-corporators wanting to profit from redevelopment. However, NMMC has clarified that the step is necessary given the history of collapse of unsafe structures.Read more

The National Company Law Tribunal (NCLT) has initiated the Corporate Insolvency Resolution Process (CIRP) against ATS Heights Private Limited, the developer of Knightsbridge luxury housing project in Noida sector 124. This comes after ATS failed to pay dues of INR 285 crore and INR 47 crore to lenders on time. ASK Trusteeship Services Private Limited, representing some ASK funds and investment managers, had filed a petition citing the default. The NCLT bench approved the petition and appointed Gaurav Katiyar as the Interim Resolution Professional (IRP) to oversee the CIRP. The NCLT in its order has made it clear that non-payment of debt when it is due and payable amounts to default as per the Insolvency and Bankruptcy Code (IBC).Read more