Wednesday 13 January 2016

Unitech case jolts builders, gives hope to home buyers

Unitech case jolts builders, gives hope to home buyers
By Prabhakar Sinha , TNN|13 Jan, 2016, 10.40AM IST
The sharp slowdown in the realty sector has piled misery on home buyers across the country and within NCR. By some estimates, handover of 3 lakh houses are delayed by up to eight years.

The sharp slowdown in the realty sector has piled misery on home buyers across the country and within NCR. By some estimates, handover of 3 lakh houses are delayed by up to eight years.


NEW DELHI: The Unitech case has jolted real estate developers on the need to speed up delivery of office and residential property after the company's directors spent a night in jail on the orders of a court before they obtained bail.

The sharp slowdown in the realty sector has piled misery on home buyers across the country and within NCR.

By some estimates, handover of 3 lakh houses are delayed by up to eight years.

Lack of clear guidelines has left home buyers at the mercy of the fine print of the buyer-seller agreement.

Apro-consumer realty bill which seeks to set up a regulator and bring transparency in the unregulated segment is pending in Rajya Sabha. Meanwhile, the list of consumer woes has grown.

"We booked the apartment in 2009 and were supposed to get it by 2011. It has been a long struggle. We are fighting a legal battle at the National Consumer Redressal Court, but it is just moving from date to date," said Sharmishta Mallick, who booked an apartment in Gurgaon.

President of Confederation of Real Estate Developers' Association of India (CREDAI) Getamber Anand, who is also CMD of ATS, said the episode is a clear message that the law will catch up and urged developers to focus on execution, delivery and keep their promise made to the buyers.

A senior developer from Mumbai said gone are the days when developers used to promises something at the time of selling and deliver something else. "Now, the buyers are discerning and the courts are active. This episode will make one think twice before messing around with a customer," said the developer, who did not wish to be quoted.

CREDAI NCR president Manoj Gaur said he would not read much in the latest case, but added that fly-by-night operators will have to wind up operations.

He said Unitech is a serious player in the segment but found itself in such a mess due to reasons beyond its control.

A Bengaluru-based builder said many developers are in a tough spot because of diversion of sale proceeds from one project to another or for acquisition of fresh land. At a time when the sector is facing slowdown, such players get trapped and face the risk of default in repayment of loans and delay the completion of projects.

Wednesday 6 January 2016

Gated communities not allowed across public roads and parks

PRIVATE LAYOUTS CANNOT HIDE BEHIND WALLS, SAYS BBMP
By Bharat A Patel, Bangalore Mirror Bureau | Jan 4, 2016, 04.00 AM IST


The residents welfare association filed a writ petition in HC stating that BBMP’s proposed plan was illegal

The BBMP's stand comes in the backdrop of the MS Ramaiah City Layout, JP Nagar, controversy where the layout's residents have locked horns with residents from neighbouring areas over throughfare

In a major setback to residential layouts proclaiming themselves 'gated communities', blocking roads and cutting off access to the general public, the BBMP has categorically stated that roads and parks inside such layouts are "public properties" and, hence, cannot be access-controlled.

Another significant directive from the BBMP is that private layouts cannot barricade themselves within compound walls if roads are meant to be used by the public or are criss-crossing through them. 

The BBMP's stand comes in the backdrop of the MS Ramaiah City Layout controversy in JP Nagar 8th Phase (ward number 195) — where the layout's Residents Welfare Association has locked horns with residents from neighbouring areas over access to roads and a park inside the layout.

A BDA-approved layout, M S Ramaiah City was marketed as a gated community and the developers constructed a compound wall around it and also installed gates on the road that connects J P Nagar 8th Phase with Bannerghatta Road. The layout came under the purview of BBMP in 2007.

However, a controversy erupted when K N Sharath Babu, a resident of nearby Adityanagar, took objection to the blockading of the road and the alleged construction of a structure on a public pathway. 

He complained to BBMP officials. When there was no action taken, he lodged a complaint with the Lokayukta stating that the general public was not being allowed inside the layout despite the BBMP maintaining the road and park. 

Subsequently, the BBMP technical wing did a spot inspection and found that a compound wall was constructed around the layout and it was obstructing free movement of public from neighbouring layouts.
The BBMP chief engineer's report in September 2014 stated: "Three roads from the neighbouring layout have terminated at the compound wall of MS Ramaiah City Layout. 

The BDA has informed them that the roads formed in BDA approved layouts are a public place and construction of any wall across such road and the making a gated community is not allowed. 

Such obstructions will be considered as unauthorised and further action will be taken according to rules." 

The report also named four BBMP engineers: N A Khan, Bhaskar, Ramachandra and Yogendra — for not having cracked down against such construction.
In the meantime, the M S Ramaiah City Residents Welfare Association filed a writ petition in the Karnataka High Court stating that BBMP's proposed plan to demolish the compound wall was illegal. 

Justice Ravi Malimath disposed of the petition on October 29, 2015 with a direction to BBMP to act in accordance with the law. 

The BBMP legal cell interpreted the court order as a green signal to initiate removal of obstructions. The Bangalore Metropolitan Task Force (BMTF), on November 18, 2015, sent a communication to the BBMP joint commissioner (Bommanahalli zone) to follow the court directive of clearing unauthorised structures and furnish a compliance report.
Though action is yet to be initiated, the BBMP's directive comes as a breather for many neighbourhoods that are grappling with similar problems as several land developers market their residential properties as private layouts.



The sign outside the park which layout residents claim has now been removed


RWA claims wall is for safety 

The MSR City RWA, President, Shashikanth S Kargudri says, "It was publicised as a gated community even before the sites were allotted to us. 

We are fighting for the compound wall because of the safety and security it offers our residents. If the gate and wall is removed, everyone will be open to come and it would be difficult for us to maintain the layout. 

There are several gated communities in the city why are they targeting only us. The BDA and BBMP did not have funds to maintain the ground and park, so we started collecting money from the residents and maintained it. Later the parks were adopted from us in an agreement with the BBMP and it would be open to the public. Earlier we had a board stating that entry to the park was restricted to residents of this layout, but now it has been removed and the public can walk in. So far the BBMP has not issued any notice to us on the demolition of the compound wall, which should be sent three weeks prior to demolition."



The permieter wall which has sparked the ire of
neighbouring residents


It is illegal
N Keshava Kumar, President of Bangalore Residents Welfare and Cultural Association, says, "It is not correct to erect a wall or gate for safety. The road and other things have been set up by the government and used by the public. Bringing security to the people living inside the layout is their choice and if they want use public property for his nobody will accept it."





City doesn't have gated community concept
The former BBMP Commissioner, Siddaiah, a civic expert says, "There is no concept like a gated community. They shall be part of the city. If gated communities are blocking traffic and causing inconvenience to the public they must be demolished. Is there no safety and security for those leaving outside the gate? It is not a defense establishment to put up a board that says entry prohibited."