Maharashtra's Draft Housing Rules Mandate Greater Compliance From Builders Page No. 7
Volume: 4• Issue: 6
January 2017 l New Delhi l www.homeforeveryone.in
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Tata Housing partners Amazon to sell Goa' apartments
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DLF चेयरमैन क बेटी ने लिटयस ु ं जोन म 435 करोड़ म खरीदा बगला ं
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Johnson Lifts upbeat on growth; eyes ₹ 2,200crore revenues by 2019
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Kohler Awards Winners Announced
Realty Reforms In 2016 Will Pay Dividends In 2017 The year 2016 has clearly been one of the most eventful for India’s real estate sector. A series of reforms and other initiatives are set to transform realty in the long term. These include the Real Estate Regulatory Bill, the Real Estate Regulatory Authority, the Prohibition of Benami Property Transaction Act, the Goods & Services Tax, and Demonetisation of Rs500 and Rs1,000 notes. To begin with, both the Real Estate (Regulation and Development) Bill, 2016 and establishment of the Real Estate Regulatory Authority (RERA) will prove to be game-changers for the industry. The former, which became an Act on 1 May 2016, mandates institutional norms protecting the interests of home buyers, including through registration of projects. Accordingly, builders would need to keep 70% of funds received from buyers in an escrow account to ensure these are not diverted for other purposes. As for RERA, it will take at least a year to set up a proper Regulatory Authority.
Creating a Level-playing Field Once these norms are fully operational, it will promote professionalism and transparency and create a more level-playing field between buyers and builders. For instance, the Real Estate Bill mandates the same penalty of 18% for builders delaying possession or buyers postponing payment. Thanks to such even-handed measures, the high trust deficit that exists between both stakeholders would be reduced considerably.
The other game-changing reform that needs special mention is GST or Goods & Services Tax. On the anvil for more than a decade, GST would help subsume a series of Central taxes and State-level levies that have hobbled the industry for decades. For example, service tax, VAT and stamp duty have been some of the major levies leading to higher prices for customers. Under the GST regimen, service tax and value-added tax will be replaced by Central GST and State GST. Unfortunately, stamp duty has been kept out of GST’s ambit as of now. It is hoped, however, that sooner or later stamp duty will also be brought under
the purview of GST. This will make property more affordable for buyers across all categories. Similarly, the NDA Government also passed the Benami Transactions (Prohibition) Amendment Act, 2016, which gives it powers to confiscate benami properties. Coming into force from 1 November, the Benami Act primarily seeks to reinforce the fight against tax evasion. Benami properties are real estate assets under fictitious names or in another person’s name in order to avoid taxes and thereby conceal unaccounted wealth. The Act has provisions that make violation punishable with up to seven years’ imprisonment plus a fine
of up to 25% of the asset’s fair value. Benami property can also be confiscated without any compensation. It should be noted that under the Act, the term “property” denotes movable, immovable, tangible and intangible assets. Long-term Benefits Besides these longstanding measures, on 8 November evening the NDA Government pulled off another big bang measure that is slated to have long-term implications for the real estate industry and the Indian economy. Surprise demonetisation of Rs500 and Rs1,000 notes led to 86% of the currency in circulation suddenly being declared non-legal tender. While analysts are still debating the pros and cons of demonetisation and its comprehensive impact on the economy and the country, it’s clear the short-term impact is being felt by almost all sectors. Although there are many dire predictions about the negative Turn To Page 12 For More News
Govt Eases Environmental E-clearance Housing.com Partners With To Achieve Housing For All Tata Housing To Develop for building projects in the country. Singh told TOI on Wednesday that the Digital Platform The move allows smaller projects to notified changes were in tune with what
The changes were made through a gazette notification in the existing environment impact assessment rules last week which integrated environmental conditions in building bye-laws to fast-track the permission process for construction. NEW DELHI: Seeking to achieve a target of housing for all by 2022, the Centre has simplified the environmental clearance processes
meet environment conditions through a 'self-declaration' process and spares the bigger projects the need of seeking prior green approvals before embarking on construction activity. The changes were made through a gazette notification in the existing environment impact assessment rules last week which integrated environmental conditions in building bye-laws to fast-track the permission process for construction. "Since the states are now required to bring changes in the respective building bye-laws so that it won't be in conflict with the central notification, the implementation of the new rules will take nearly six to seven months," said Manoj Kumar Singh, joint secretary in the environment ministry.
was being followed in many countries, including Japan and Singapore. "Idea is to make more buildings follow environmental norms. It integrates standard environmental conditions with the building permission to cut delays." The notification brings building project of the size of 5,000sq metres to less than 20,000sq meters within the ambit of fulfilling "environmental conditions" through self-declaration and certification procedures. Local authorities will have the power to take a final call on compliance of green norms. This category of project was earlier under the exempt group. "The local authority may issue the building permission incorporating environmental norms in it and allow the project to start based on selfdeclaration and certification," it said. Turn To Page 4 For More News
Housing.com has tied up with Tata Housing, to create an exclusive digital marketing platform for the sale of the real estate major’s existing inventories and launch of new projects Housing.com and Tata Housing, a
subsidiary of Tata Sons Limited, have signed a multi-level strategic partnership deal, in which Housing.com will create an exclusive, integrated, pan-India brand platform, showcasing the real Turn To Page 9 For More News