Chennai civic bodys commercial complexes remain vacant and struggle with low revenue

The Greater Chennai Corporation rents out 3,727 shops in commercial complexes in 150 prime locations, which should ideally thrive in a city known for its love of malls and shopping. Despite being located in prime areas like T Nagar, Central, Anna Nagar, Ashok Nagar, and Alwarpet, these complexes struggle to attract customers, generating less than half of the ?20 crore annual revenue targets. Many shops remain vacant, while vendors in occupied spaces owe nearly ?9 crore in dues but continue to operate. 
Most of the GCC's commercial shops, ranging from 70 to 1 sqft are rented at a subsidized rate of ?10 per square foot. The largest complex, Moore Market near MGR Central, is in disrepair, with over 200 of its 400 shops shuttered. The unpopularity stems from GCC's failure to modernize its complexes with global brands and diverse shopping options. They also lack basic amenities such as parking, lifts, digital signage, toilets, and proper maintenanance. "GCC should demolish and rebuild these complexes with modern amenities like glass windows, air-conditioning, and varied shop sizes to attract businesses like hotels, merchandise stores, and gaming zones for Kids. 
 

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Tamil Nadu Government identifies land bank of office space development in Chennai

Tamil Nadu govt is taking steps to avoid office space crunch in the state and tapping its own land bank in Chennai to build office facilities with private partnerships, a senior govt official said. It has identified 30 locations in Chennai for grade A office space development, said state industries secretary. “The incremental office space absorption in the city is higher than supply and govt is unlocking its own land and plans to develop office spaces. Given the current demand scenario, there is a need for ramping up supply, Estimates by analysts put Chennai’s gross office space absorption in 2023 at 10.8 million sq ft. They expect a similar momentum this year but a slowdown in 2025 due to shortage of office space. The state is witnessing a lot of traction in GCC operations due to incentives and subsidies being offered by the state, he said, adding that the state is open to tweaking the incentive package based on industry inputs. Tamil Nadu tops rankings in most economic parameters, it is behind in global capability centres compared to other cities like Bengaluru, Delhi-NCR, Hyderabad and Pune. A report released at the event by CBRE states that Chennai ranked 3rd in GCC leasing after Bengaluru and Hyderabad from 2022 to September 2024, with 33% of the activity by engineering and manufacturing firms. GCCs are expected to absorb up to 3.2 million sq ft in 2025, slightly higher than current year. 
 

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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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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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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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