Flats Buyers cannot be put at a disadvantages over builders default Bombay HC

Bombay High Court on Monday said granting deemed conveyance to a housing society does not bar the civic body from taking action against the  unauthorised structure, but it would enable the society to pursue its rights to seek regularisation. Bandra's ALJ Residency Cooperative Housing Society (CHS) Ltd petitioned the high court in 2018 against the order of a deputy registrar of cooperative societies who had rejected its plea for a unilateral deemed conveyance certificate. After hearing lawyers Mayur Khandeparkar and Tushar Gujjar for the housing society, the high court said the flat purchasers were "caught in a vicious circle where though they were put in possession of their flats under validly registered MOFA agreements", since the builder did not comply with his obligations to ensure an OC, they could not apply for regularisations eithe. The high court, on analysing the provisions of the MOFA Act, agreed. The court, in its judgment, said, "The non-compliance of the statutory obligations by the promoter cannot place fetters on the statutory right of the flat purchasers to the conveyance of the promoter's right, title and interest in the property." The court, after setting aside the deputy registrar's Jan 2017 order, remitted the society's application for the limited purpose of issuing a certificate for execution of unilateral deemed conveyance of the Bandra plot along with the buildings standing on it. This is subject to a self-declaration being filed by the society that after getting the deemed conveyance, the petitioner-society may enter into the agreement for the purpose of redevelopment of the building.
 

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Kochi ED begins probe into rs 96 crore loan scam in Angamaly co op society

The Enforcement Directorate (ED) has registered a case and started investigation into the alleged loan scam amounting to around Rs 96cr at the Angamaly Urban Cooperative Society. The state crime branch has been investigating the case. The crime branch investigation has found that as many as 422 bogus loans were granted against title deeds of properties. In many cases, the original title holders were not even aware of granting the loans. Apart from bogus loans, cases were also filed at local police stations by investors complaining that their investments were not being returned. The case was registered and investigated by the Angamaly police before the crime branch took over. A first information report (FIR) registered by Angamaly police alleged that the forgery and subsequent cheating happened July 7, 2002, onwards. Loans were issued on forged applications as well as applications submitted without requisite documents, even in the name of non-members. 

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Chennai Survey highlights poor living conditions in TNUHDB tenements

A recent study conducted by Arappor Iyakkam, a citizen-led organisation, exposed the dismal living conditions in eight Tamil Nadu Urban  Habitat Development Board (TNUHDB) tenements across Chennai. The study, which involved more than 50 volunteers, highlighted issues ranging from poor construction and lack of basic amenities to social problems such as drug abuse among the youth. The study covered TNUHDB tenements in Perumbakkam, Semmenchery, Kannagi Nagar, Navalur, Thiruvottiyur, KP Park and Thideer Nagar. Residents reported frequent power cuts, unsafe wiring, dysfunctional lifts and shoddy garbage management. Water scarcity is a major issue in Perumbakkam, where water is supplied for only one hour every three days. Thousands of families were relocated to areas such as Kannagi Nagar and Semmenchery, far from their original residences and livelihoods. This significantly increased their commuting burden. Although the govt provides free bus services for women, residents say the services are insufficient to meet their needs. The study recommends setting up a transparent and trackable grievance redress mechanism for residents to report issues. "The current response from officials is extremely poor. There is also a shortage of manpower within TNUHDB, which needs urgent attention. 
 

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Urgent reforms needed to streamline Tamil Nadu RERA processess BAI

Builders association of India has called for urgent reforms to streamline the Tamil Nadu real estate regulatory authority (TNRERA) approval process, highlighting key challenges that cause delays and compliance burdans. Developers say that approvals often take 50–60 days, far exceeding the stipulated 30-day timeline. They suggest raising all queries at once and inviting applicants to authority meetings for faster clarifications, a practice successfully adopted by CMDA. Concerns over discrepancies in property measurements were also raised. Builders proposed leniency for minor differences in land extents, especially in layouts, to prevent unnecessary delays. Additionally, they urged authorities to exempt quarterly progress reports (QPRs) from requiring CA signatures, citing significant costs. Other suggestions included accepting scanned copies of original documents for redevelopment projects, requiring only the last-page signature on soil test reports, and enabling document sharing between agencies such as CMDA, DTCP, and RERA to avoid redundant submissions. Addressing penalties for selling units before RERA approval, builders emphasised the need for a balanced approach, given the fines outlined in a recent circular. These reforms, they argue, will boost efficiency and ease compliance for the construction sector.

 

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Fresh period of Limitation to run on continuous breach of contract NCDRC

Veena Jain had booked an apartment in "Wave Gardens" at Mohali. She was provisionally allotted a duplex apartment ad measuring 3,275 sq.ft., costing Rs 1,32,63,750/. The project was to be developed within 30 months, with a grace period of six months, and delivery was to be given by November 6, 2015. Jain paid a total to Rs 68,50,836/. In December 2015, she visited the site to check the status of the project and found that there was no development activity. Yet, the builder sent a demand letter on January 15, 2016, demanding a further amount of about Rs 42,28,063/, following up with another demand letter dated July 7, 2018, threatening to levy interest for delay in payment. In January 2020, Jain demanded a refund of the amounts paid by her along with interest. The builder ignored the demand and wrote to Jain in July 2020 asking her to take possession. The builder contested the complaint, contending that it was barred by limitation. The builder constested before the Mohali District Forum in August 2020 complanining about deficiency in service and unfair trade practice. The builder contested the complaint, contending that it was barred by limitation. The builder contested the compalint, contending that it was barred by limitation. The builder also argued that a flat purchaser was not entitled to claim a refund after the Occupancy Certificate was obtained and possession was offered. The District Commission observed that the last instalment was paid on September 9, 2014, so limitation of two years would be computed from that date. It held that the complaint filed in August 2020 was highly time barred and dismissed her appeal. Accordingly, by order dated November 4, 2024 delivered by Dr. Inder Jit Singh, the National Commission set aside the orders and directed the builder to refund the money with 9% interest within a period of 45 days,and if delayed pay 12% interest.
 

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Nippon Lfe India acquires offices spaces for rs 486 crore in mumbai

Nippon Life India Asset Management has executed a definitive agreement with realty developer Lodha, listed as Macrotech Developers, to acquire an office space spread across two floors in a commercial tower One Lodha Place in Mumbai’s business district Lower Parel for Rs 486 crore. The asset management company is planning to shift its headquarters in this office spread over 52,162 sq ft from Peninsula Business Park in the vicinity. The asset management company is planning to shift its headquarters in this office spread over 52,162 sq ft from Peninsula Business Park in the vicinity. In a regulatory filing, Nippon Life India Asset Management said there are no shareholding ties with the selling entity, and the transaction is not categorised as a related party transaction. The filing, however, did not mention the plan to shift the headquarters to this new office. As part of the deal, the buyer will get exclusive signages rights for the space on the 29th and 30th floors of the commercial tower that has a total 36 floors. Nippon Life India Asset Management specializes in managing a variety of investment products, including mutual funds like exchange-traded funds (ETFs); managed accounts such as portfolio management services, alternative investment funds, and pension funds; as well as offshore funds and advisory mandates. It is the first asset management company listed on Indian bourses in 2017.
 

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Average home prices in seven cities at rs 1.23crore in H1 FY25  Anarock

The average ticket size of homes sold across seven cities is approximately Rs 1.23 crore in H1 FY25 while it was Rs 1 crore in the corresponding period of FY 2024, according to Anarock data. Anuj Puri, chairman, Anarock Group said, "Over 2,27,400 units worth approximately rs 2,79,309 crore were sold across the top seven cities between April and September 2024. Contrastingly, the corresponding period of FY2024 saw about 2,35,200 units worth Rs 2,35,800 crore being sold. Despite a 3% drop in overall unit sales, the total sales value outstripped that of a year ago by 18% - clearly underscoring the unrelenting demand for luxury homes." The data reveals that NCR saw the highest average ticket size growth – from approximately Rs 93 lakh in H1 FY24 to over Rs 1.45 crore in H1 FY25. While the value of sold inventory increased by 55% in this period, the total number of units sold declined by 1%. Mumbai metropolitan region saw no change in average ticket size in this period . The region saw approx. 76,410 units worth Rs 1,12,356 crore sold in H1 FY24, saw approx. 77,735 units worth approx. Rs 1,14,529 crore sold.” At 44%, Bengaluru witnessed the second highest jump in average ticket size among the seven cities - it rose from Rs 84 lakh in H1 FY24 to Rs 1.21 crore in H1 FY25. Hyderabad saw the average ticket size of sold units at Rs 84 lakh in H1 FY24 while this increased by 37% to Rs 1.15 crore in H1 FY25. Chennai saw a jump of 31% in average ticket size - from Rs 72 lakh in H1 FY24 to Rs 95 lakh in H1 FY25. In Pune, the average ticket size in H1 FY24 was Rs 66 lakh - it increased by 29% to Rs 85 lakh in H1 FY25. Kolkata witnessed a 16% jump in average ticket size - it rose from Rs 53 lakh in H1 FY25. 
 

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NCLT directs initiation of insolvency proceedings against Raheja Develipoers

The National Company Law Tribunal has directed to initiate insolvency proceedings against realty firm Raheja Developers on a petition filed by flat allottees of its Gurgaon-based Shilas project. The NCLT said Raheja Developers has a "debt due and default" against the flat allottees, who had made their payments and delivery of the units was not on time and referred it for Corporate Insolvency Resolution Process (CIRP). The Application bearing... filed by the Applicants under Section 7 of the Insolvency & Bankruptcy Code, 2016, for initiating CIRP against Raheja Developers Ltd is, hereby, admitted," the NCLT said. A two-member NCLT bench, comprising its President Justice Ramalingam Sudhakar and AK Srivastava, has also appointed Manindra K Tiwari aslo appointed Manindra K Tiwari as the Interim Resolution Professional for Raheja Developers. Further, possession was to be given in the year 2012-2014 with a grace period of 6 months. However, it was extended further. This debt has been acknowledged via various emails, and the default is continuing, it said. The matter relates to the Raheja Shilas project located at Sector 109, Gurugram, Haryana. Over 40 flat buyers have claimed a default of Rs 112.90 crore against the realty firm. The petitioners had submitted that they have paid over 95 per cent of the total sale price and 100 per cent of all the demand made to date as per the demand letter issued by Raheja Developers in the majority of cases. Advocate Aditya Parolia represented the association of Revanta, Vanya and Aranya projects of Raheja Developers in the matter. Earlier also, insolvency proceedings were initiated against Raheja Developers in 2019 over a delay in its Raheja Sampada project. However, in January 2020, it was set aside as the delay in the project was on account of the absence of clearance by the competent authorities, which was beyond its control.
 

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Cost of construction rises up to 11 percent annually in 2024 across real estate segaments Colliers

The average cost of costruction is estimated to have increased by up to 11% over the past year. Average cement prices have seen a steep decline of 15%, while average steel prices have witnessed a marginal 1% decrease over the last 12 months, according to Colliers. The cumulative effect of rise in the prices of four key construction materials including cement, steel, copper and aluminum have been relatively low. Badal Yagnik, CEO, Colliers India said, “While rise in prices of key construction materials was relatively modest over the last year, labour costs have been driving the overall cost of construction upward. With labour accounting for more than one-fourth of overall construction cost, a 25% annual rise in labour costs has stretched construction budgets and impacted operational expenses. Moreover, the need for skilled labour and the associated costs for training, safety and regulatory compliance further adds to spiraling labour costs. As of October 2024, cost of construction in the residential segment saw an estimated 11% increase year-on-year. Amongst various real estate segments, construction cost escalation has been relatively sharper in the residential segment. The growing focus on better building quality and the rising demand for well-equipped gated communities have encouraged residential developers to improve their projects, which has led to higher construction costs in the housing sector. Real estate developers are increasingly making investments in training and automation to address challenges related to volatilities in the availability of skilled manpower, which in turn can potentially facilitate better project scheduling. 
 

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Bengaluru based Ambica Constructions CEO held for evading rs 116cr Tax

Cracking down on tax evasion, Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru zonal unit, Intelligence (DGGI), Bengaluru zonal unit, uncovered a multi-crore fraud alleged involving Bengaluru-based Ambica Constructions and Contractors, which is engaged in work contract services, and arrested its CEO, Praveesh Kuzhipally. The company was found guilty of violations under GST Act, 2017, including fraudulent availment of ineligible input tax credit (ITC), suppression of taxable turnover and non-payment of collected taxes to the govt amounting to approximately Rs 116 crore. According to a DGGI release, the company falsely availed ITC based on invoices from bogus suppliers. "Using advanced data analytics tools and RFID-tracking of vehicle movements, it was found that the firm unlawfully claimed over Rs 11.8 crore in ITC from non-existent suppliers. Kuzhipally has been remanded in judicial custody for 15 days. The company has already paid over Rs 3.1 crore of its outstanding dues voluntarily.
 

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Sebi slaps rs 26 crore demand notice on Reliance Big Entertainment in RHFL fund diversion case

Capital markets regulator Sebi has asked Reliance Big Entertainment to pay Rs 26 crore in fines for failing to clear penalties imposed by the regulator in a case pertaining to illegal diversion of funds. The regulator also warned that assets, including bank accounts of Reliance Big Entertainment Pvt Ltd (now known as Rbep Entertainment Pvt Ltd) will be attached if they fail to make the payment within 15 days of the notice issued on Thursday. The notice was issued after the entity (Reliance Big Entertainment) failed to pay the Rs 25 crore fine imposed by the regulator in August this year. In the demand notice, Sebi directed the entity to pay Rs 26 crore, including interest and recovery costs within 15 days. In August this year, the markets watchdog barred industrialist Anil Ambani and 24 others from the securities market for five years on charges of diversion of funds from RHFL. Additionally, Sebi has imposed a penalty of Rs 25 crore on Ambani and restrained him from serving as a director or Key Managerial Personnel (KMP) in any listed company entity for five years. In early November, Sebi issued demand notices to six entities, including RHFL's promoter entity Crest Logistics and Engineers (now known as CLE Pvt Ltd), and asked them to pay Rs 154.50 crore. Last week, Sebi asked six entities, including RHFL and former company officials, to pay Rs 129 crore in penalties. On Tuesday, the markets regulator also asked Mohanbir Hi-Tech and Indian Agri Services to pay Rs 52 crore in fines for the illegal diversion of funds from RHFL.
 

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Flats with interlinking passage cannot have separate electricity connections TNERC 

Owning two flats in an apartment building with an interlinking passage will not make one eligible to enjoy two separate electricity service connections even though two separate property taxes and maintenance charges are paid, Tamil Nadu electricity ombudsman has said. The ombudsman rejected the argument of the petitioner, S Manimekalai of Mylapore, that the internal passage linking two tenements was only a temporary arrangement as they were senior citizens.It said that the interlinking passage violated TNERC distribution code and would cause a loss to the state govt as the petitioner would enjoy 200 units of free power. Tangedco's assistant engineer for the Luz section in 2023 received a complaint from an anonymous person claiming misuse of electricity by two flats in an apartment in Mylapore by making an internal passage. Tangedco officials inspected premises belonging to Manimekalai and confirmed that the two flats had an internal link by demolishing a portion of a wall separating the houses. While a notice was issued to Manimekalai to merge both connections, she approached the consumer grievance redress forum (CGRF). "Both flats maintain completely separate identities, with individual property documents such as separate house tax bills, separate water tax bills, individual kitchens, and separate maintenance bills. 
 

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