The City and Industrial Development Corporation (CIDCO) recently announced revisions to its reconstruction policy last week. A building can now be renovated with only 51% of the housing society members' approval as opposed to the previous 100%. This decision has been made to enable the quicker rehabilitation of existing buildings on CIDCO sites in Mumbai. The rest of the policy's terms and conditions will remain the same.Read more

Bruhat Bengaluru Mahanagar Palike (BBMP), the governing body in Bengaluru responsible for issuing construction approvals for real estate projects has scrapped the Occupancy Certificate issued to Sobha City, a residential project, on account of the later submitting falsified and fabricated documents to obtain the approval. The urban planning department alleges that the no-objection certificate and clearance certificate that the builder claims to have procured from the fire department in 2013, 2016 and 2019 appear to have been fabricated.Read more

In a recent order released by the Maharashtra Real Estate Regulatory Authority (MahaRERA), builders can now apply for an extension of their lapsed projects without the previously mandated 51 percent consent from home buyers in the project. The developer will have to state down reasons for not being able to get the requisite percentage of consent from the buyers and submit the same along with their application for extension. The builder will have to also submit all the achieved consent documents and explanatory notes detailing the specific reasons for why the delay was caused which led to the lapse of the project. The applications will be reviewed on a case-by-case basis.Read more

The central government has proposed several amendments to the current insolvency law regime in a bid to strengthen and quicken the entire process. The Insolvency and Bankruptcy Code (IBC) came into effect in 2016 and has since then been amended numerous times to accommodate the changing needs. Suggestions with regard to real estate include distinguishing between defaulted real estate projects and solvent projects, allowing transfer of ownership and possession to the allottees with the consent of the CoC and allowing allottees of a completed unit to request for ownership and possession of a completed unit during a CIRP or a project-specific resolution process.Read more

MahaRERA (Maharashtra Real Estate Regulatory Authority) is set to appoint investigators to visit real estate projects starting February, to ensure that developers have not declared higher costs than they actually incurred on the project. Post the visit, investigators will have to submit a report which will include details such as stages of construction, target date of completion approved by RERA, target date set by the developer, and the opinion of the investigators as to when they feel the project can be completed. This move comes after MahaRERA identified 300 large real estate projects (worth over Rs 500 crore each), where a significant amount had been spent but very little work was completed.Read more

Last week, the Securities and Exchange Board of India (SEBI), the market watchdog, delivered a notice to Sahara Group company Sahara Housing Investment Corporation, its CEO Subrata Roy, and other parties requesting that they pay Rs 6.48 crore within 15 days in a matter involving a violation of regulatory standards. Additionally, if they didn't make the payment, the regulator threatened to attach their assets and bank accounts. The entities were given the notice after they neglected to pay the fine that SEBI had assessed against them earlier in the year.Read more

The Maharashtra Housing Area Development Authority (MHADA) and the Brihanmumbai Municipal Corporation (BMC) own 454 buildings in the city that are currently old, dilapidated and in a very dangerous condition. For the redevelopment of these buildings, the state urban development agency has created a new clause 33(24) in the Development Control and Promotion Regulations, 2034. However, since these structures are present within sites are controlled by the BMC and MHADA a standard FSI of 1.33 will apply, thereby making it commercially unviable for private contractors to consider.Read more

The Bombay HC has decided not to quash the BDD Chawls redevelopment scheme, following a petition filed by two residents, who had cited danger to health, wellbeing and right to life of residents. The HC however noted that the scheme has all necessary permissions and environmental clearance and as a result there was nothing to show any discrepancy. The bench also stated that prior to full-fledged construction, a sample flat has been built and exhibited to the officials involved with the project and no objections had been raised with regarding to the quality of construction or planning.Read more

Earlier this week, the Cabinet approved amendments to the Goa (Regulation of Land Development and Building Construction) Act, 2008 which will make it easier for the state to roll out central housing schemes catering to the Economically Weaker Sections (EWS). The new regulations will allow for relaxation in areas such as minimum plot size, maximum coverage, setbacks, etc. The changes however do not cater to other categories such as low-income group (LIG) and mid-income group (MIG) housing.Read more

The government of Gujarat has implemented new procedures to prevent fraud in the sale of properties belonging to Non-Resident Indians (NRIs). The revenue department has issued two circulars this month outlining the new rules. The new legislation follows a slew of cases in Ahmedabad and other cities in Gujarat where buyers bought land belonging to NRIs through individuals armed with the power of attorney, only to find others claiming a stake in the property. The new rules ensure that no sale may take place without the knowledge of the NRI landowner(s).Read more