BMC cracks down on redevelopment project delays
Oct 17, 2012
Source : The Times of India

 

MUMBAI: Continuing its crackdown on sloppy work, the BMC has outlined a policy limiting the maximum redevelopment project time for its properties to four years and slapping penalties on developers unable to meet deadlines. 
 
In a circular on Monday, the estates department listed out seven steps to be taken against developers if they slip up, including cancellation of proposals for delays in the planning stage and fines if construction is not completed on time. 
 
Last week, the BMC, in an unprecedented action, had slapped penalties over Rs 90 lakh on sub-engineers of its road department for not filling up potholes promptly this monsoon. 
 
Among the steps listed on Monday (see box), the BMC has revised its charges for a developer from Rs 1,000 to Rs 5 lakh every year for revalidation of the letter of intent ( LOI) if he fails to get a commencement certificate (CC) within a year. For further delay, a showcause notice will be issued for cancellation of the project. It will be implemented with retrospective effect from 2010. 
 
The BMC has taken a lenient view on delays resulting from litigation, but ordered a stiff 18% interest levy on the remaining capitalized value (the amount the developer has to pay for the sale component in a redevelopment project) and an additional Rs 1 lakh per month for any extension a builder might seek in a smoothly progressing project. 
 
The new policy also links a project's deadline to the plot area. Redevelopment on a plot up to 4,000 sq m has to be completed within three years and those that must in four years. 
 
"The delay in completion of projects embarrasses the BMC as rehabilitation of tenants cannot be done on time. Moreover, as time passes, the value of the flats in the sale component of the project increases for the builder, but leads to delay in paying up the capitalized value that he owes to the BMC. This policy will ensure that the capitalized value is paid on time and as per schedule," said a civic official. 

Latest Realty News

SBI is organizing a two-day property exhibition from 20th Oct 2012
Oct 19, 2012
Bhubaneswar: The State Bank of India (SBI) is organizing a two-day property exhibition at SBI LOCAL HEAD OFFICE, Bhubaneswar (Opp. Rabindra Mandap, Jawaharlal Nehru Marg) from 20th to 21st October, 2012. Since a lot of people tend to buy or change homes during the summer vacation, the time is ripe for such an exhibition in the city. The event, supported by Orimark Properties, will witness the
Developers crib about long process for getting permissions
Oct 17, 2012
MUMBAI: The civic body's policy that seeks to impose penalties on developers and even cancel projects if redevelopment of its properties is not completed within deadline evoked mixed reactions from experts and developers. Sunil Mantri, chairman of Mantri Realty and member of the real estate committee of the Indian Merchants' Chamber, complained about one clause that pushed up the revalidation
CREDAI property show from Nov 2 in Hyderabad
Oct 17, 2012
Hyderabad, Oct 12: The Confederation of Real Estate Developers’ Association of India (CREDAI), Andhra Pradesh chapter will organise its first-ever ‘CREDAI AP Property Show’ at People’s Plaza here from November 2. The three-day property show will bring together realtors, building material manufacturers, consultants and financial institutions from Hyderabad as well as from tier-2 and tier-3 cit
Mahindra Lifespaces plans low-cost houses in Mumbai, Chennai
Oct 17, 2012
MUMBAI: Mahindra Lifespaces Developers plans to enter affordable housing segment with projects in cities like Mumbai and Chennai. "We are seriously looking at entering the affordable housing segment. We have already purchased land in Mumbai and Chennai for this. Wherever we get the approvals first, we will start project there," Mahindra Lifespaces Managing Director and Chief Executive Anita A
Tata Housing buys a bungalow in Delhi's Connaught Place for Rs 218 crore; plans to build luxury apar...
Oct 17, 2012
NEW DELHI: Tata Housing has paid Rs 218 crore to buy a bungalow on a one-acre plot in the centre of Delhi's Connaught Place, with plans to build luxury apartments in a low-rise complex. The real estate arm of the diversified Tata Group has bought the bungalow on 2, Hailey Road from the Singh family, consisting of two sisters and two brothers. The family members, who had filed a suit in the Del
Realty cos are back with attractive NCDs to lure HNIs
Oct 16, 2012
MUMBAI: After a six-month lull, real estate companies are back in the money market to raise working capital funds by issuing non-convertible debentures (NCDs) to rich investors. Thick collateral cover and a promise to pay annualised returns of 16%-18% are making the issuances popular among savvy investors. Wealth managers and non-banking finance companies such as India InfolineBSE -0.58 %, Ede
Bangalore property market surpasses Mumbai, Delhi and Chennai with 140 per cent growth
Oct 16, 2012
BANGALORE: Bangalore has outpaced bigger property markets such as Mumbai, Delhi and Chennai with 140% growth in the quarter to June over the year-ago period, even as sales in most other cities stagnated or even plummeted. In the first quarter of the current fiscal, 15.58 million sq ft of residential space was sold in the city, giving it a total market share of 13.9% and beating other domestic
City realtors bank on Puja push to sales
Oct 16, 2012
BHUBANESWAR: City realtors are banking on the festive season from Mahalaya on Monday till Diwali on November 13 to maximize sales in an otherwise sluggish real estate market. Market insiders said competition in the housing trade has become cutthroat with supply exceeding demands. "An estimated 1 lakh housing units worth Rs 15,000 crore are on the pipeline in and around the city. These houses w
Pune Municipal Corporation spent Rs 2cr to raze 900 buildings
Oct 15, 2012
PUNE: In the last four months, the Pune Municipal Corporation (PMC) demolished 8.5 lakh sq ft using Rs 2 crore of the tax payers' money, a top civic official said. An official, who declined to be named, said that since July, the civic body has demolished 900 illegal buildings. "Expenses include the money spent on manpower and machinery and depend on the size of the building. It can range from
Land scam: Rs 2.37cr in typist's home
Oct 15, 2012
KOLKATA: Bidhannagar Police on Saturday seized cash worth Rs 2.37 crore, 131 gm of gold and a car from the Barasat apartment of Sushanta Kumar Das, one of the three arrested in the Salt Lake land scam case. Sushanta (wrongly referred to as Sukhen Das in previous reports), a typist who posed as an advocate, had along with Haradhan Das (the KMDA Group-D staffer) and Aloke Chatterjee (the retired KM

Latest Realty News Of State

Realty Talk's