Law & Policy

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Legal battle over unapproved construction highlights South Delhi's challenges

Rajeev Kumar (name changed) in Zamrudpur, South Delhi, added a floor to his 30 square yard Lal Dora property in 2019 without seeking approval. The Municipal Corporation of Delhi (MCD) issued a demolition notice, leading to a legal battle. Lal Dora areas face challenges in property ownership due to outdated records and lack of clear titles, complicating renovations and bank loans. Despite the central government's Svamitva scheme for mapping rural areas, Delhi has not fully implemented it. Experts stress the need for clear land titles and proper documentation to resolve ownership disputes and facilitate development in these regions....
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Bengaluru residents protest INR 31,000 road cutting fee amid infrastructure delays

Residents of Nadaprabhu Kempegowda Layout (NPKL) in Bengaluru are challenging the Bangalore Development Authority's (BDA) recent imposition of a INR 31,000 road cutting fee on site allottees. This fee is being charged despite ongoing delays in providing essential infrastructure such as drinking water, recycled water, and an underground drainage system. Site allottees, who have been waiting for over eight years, argue that the BDA has not fulfilled its initial promises. The Nadaprabhu Kempegowda Layout Open Forum has requested the Chief Minister to halt the fee collection, citing financial strain on residents. The Deputy Chief Minister confirmed that development costs should be included in site fees, raising concerns about the fairness of additional charges before infrastructure completion....
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Environmental regulations halt Godrej Eternia project in Chandigarh

The Chandigarh government has revoked the building plans and occupancy certificate for Godrej Properties' commercial project, Godrej Eternia, due to alleged environmental regulation violations. The decision, announced on July 25, 2024, stems from the project's failure to obtain necessary permissions from the Standing Committee of the National Board for Wildlife. Godrej Properties plans to contest this decision, emphasising misunderstandings in the order. This action underscores the critical need for real estate developers to adhere to environmental standards, impacting Godrej Properties' operations and the broader industry....
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Bombay High Court mandates demolition of illegal building

The Bombay High Court has directed the Kalyan Dombivli Municipal Corporation (KDMC) and Thane Police to demolish the illegal Radhai Complex in Dombivli East. This order follows a mob of 200-300 individuals obstructing officials during a demolition attempt on July 16. The court emphasised the need for law enforcement to counteract such resistance. KDMC and police are required to submit compliance reports by August 12. The incident highlights the broader issue of unauthorised constructions and the challenges faced by authorities in urban areas across India....
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NCLT directs Mahindra Homes to inform homebuyers about share capital reduction

The National Company Law Tribunal (NCLT) has directed Mahindra Homes to notify homebuyers about its proposed reduction in equity share capital, acknowledging them as creditors under Section 66 of the Companies Act, 2013. Mahindra Homes seeks to cancel a portion of series B and C equity shares held by Actis and Mahindra Lifespace Developers. The NCLT emphasised that advances from homebuyers, totalling INR 213.84 crore, are financial liabilities until possession is handed over. The ruling highlights the importance of transparent communication with all stakeholders and sets a precedent for future capital restructuring cases in the real estate sector. The next hearing is on October 30....
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The Karnataka government has tabled a bill to impose property tax on unauthorised buildings

The Karnataka government introduced two bills to enhance revenue and prevent water theft. The Karnataka Municipalities Bill, 2024, imposes fines of up to INR 50,000 and 15-day imprisonment for officials failing to collect property tax and double tax on unauthorised buildings. The Karnataka Irrigation Bill increases water theft penalties to INR 2 lakh and two-year imprisonment, requiring government permission for drilling near canals. These amendments aim to improve compliance and resource management, ensuring better adherence to regulations and preventing illegal activities, thus enhancing accountability and contributing to the state's development and sustainability....
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The Yamuna Expressway Authority is set to relaunch its effort to acquire 36 land parcels

The Yamuna Expressway Authority (YEIDA) is re-examining 36 previously unsuccessful land acquisition attempts to expand its holdings and curb illegal constructions. The initiative covers over 6,317 hectares in various sectors. Challenges included farmer opposition over low compensation, leading to court stays. The survey also addresses encroachments, with notices issued to over 300 violators. Upon completion, YEIDA plans residential, group housing, and transport projects to foster regional growth. This effort aims to secure land for development, enforce proper use, and support infrastructure and economic expansion, ensuring transparent and fair processes in land management....
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Proposed 20% circle rate hike in Ghaziabad to increase property costs and stamp duty fees

Ghaziabad is set to increase its circle rate by 20% for residential and commercial properties. The circle rate, established by the state government, is the minimum price below which a property cannot be sold and is used to calculate stamp duty and registration charges. This proposed hike comes after significant infrastructural developments, such as the Delhi-Meerut Rapid Rail, which have raised property values. If the proposal is approved, higher circle rates will result in increased stamp duty and registration fees, thereby raising overall property prices. Public feedback will be sought before finalising and implementing the revised rates....
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CCI dismisses complaint against Indiabulls Housing Finance for misleading ads

The Competition Commission of India (CCI) has dismissed a complaint against Indiabulls Housing Finance and its officials, including the Managing Director and Chairman, for alleged abuse of dominant position through misleading advertisements. Complainant Anil Bansal accused the company of offering attractive loan rates that later increased, creating market barriers. However, the CCI found no evidence of anti-competitive practices, noting the highly competitive landscape of the property loan market in India. This decision clears Indiabulls Housing Finance of wrongdoing and underscores the role of the CCI in maintaining fair competition and protecting consumer interests....
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Gurugram cracks down on illegal constructions in affordable housing

Gurugram authorities are cracking down on illegal construction in affordable housing units, following a survey by the District Town Planner (Enforcement) department revealing widespread violations in EWS category homes in DLF Phase 5. Show-cause notices were issued to 100 homeowners for illegally converting EWS units into commercial spaces or adding extra floors. Despite notices, inadequate responses have led to the preparation of restoration orders. These violations have strained infrastructure, highlighting the need for stricter enforcement of building regulations and protection of low-income residents' rights. Restoration orders will mandate compliance or result in property sealing....
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NKDA permits controlled construction material storage on sidewalks

The New Town Kolkata Development Authority (NKDA) has introduced new regulations permitting builders to store construction materials on footpaths under specific conditions. Developers with approved plans can now use footpaths for storage, provided a 1.5-metre pedestrian passage remains clear. This initiative balances construction needs with pedestrian safety. All future projects in New Town will require a construction management plan detailing material storage and waste disposal practices. An upcoming Standard Operating Procedure (SOP) will outline enforcement and penalties. This regulation aims to improve construction efficiency while ensuring safe and uncluttered sidewalks for pedestrians....
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Bihar assembly passes bill for lift and escalator regulation

The Bihar Assembly has passed the Bihar Lift and Escalator Bill, 2024, introduced by Energy Minister Bijendra Prasad Yadav, to enhance safety standards in multi-storied buildings. This legislation mandates registration and regular inspections of lifts and escalators in residential, commercial, and public buildings. Key provisions include mandatory maintenance, routine inspections, and third-party insurance for accident compensation. The bill responds to the increasing number of high-rise structures in Bihar, aiming to prevent accidents and ensure public safety. This move aligns Bihar with other Indian states prioritising stringent safety regulations in the construction industry....
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Karnataka government approves plan to divide Bengaluru into 10 units

The Karnataka government has approved a bill to restructure Bengaluru's administration, proposing to divide the Bruhat Bengaluru Mahanagara Palike (BBMP) into up to 10 smaller units. This aims to enhance governance in the city, which faces challenges like traffic congestion, waste management, and infrastructure development. The plan includes increasing the number of wards from 225 to 400 and establishing a Greater Bengaluru Authority (GBA) to coordinate the smaller units. The GBA will oversee the 1,400 sq km region but not local planning, which remains with the Bangalore Development Authority (BDA)....
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Tamil Nadu's new self-certification scheme simplifies home construction

Chief Minister M K Stalin inaugurated a new scheme under the Department of Housing and Urban Development, allowing self-certification for building permits of homes up to 3,500 square feet on plots up to 2,500 square feet. The initiative, first introduced in the 2024-25 state budget, aims to help economically weaker sections and the middle class by simplifying the approval process and reducing costs. Applicants can receive permits immediately, with certain inspections waived. The scheme is expected to benefit rural and urban areas alike, reducing approval charges and streamlining home construction in Tamil Nadu....
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Supreme Court directs High Court to resolve dispute over Goa's coastal development plans

The Supreme Court has directed the High Court of Bombay at Goa to resolve the dispute over the Outline Development Plans (ODPs) for five coastal villages in Goa-Calangute, Candolim, Parre, Arpore, and Nagoa. Introduced on December 15, 2022, the ODPs face opposition from environmental activists and residents, leading to a High Court stay on development activities. The Goa Foundation argues that the ODPs will cause environmental harm, while allegations have been made against Calangute MLA Michael Lobo for influencing the plans for personal gain. The Supreme Court's decision to send the case back to the High Court will determine the future of these development plans and their impact on Goa's coastal environment....
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Government takes steps to curb illegal land registration in Karnataka

The Karnataka government is addressing illegal land registrations, especially in high-value areas like Bengaluru, by integrating "e-khatas" or electronic land records for all properties. Revenue Minister Krishna Byre Gowda announced this initiative to enhance transparency and prevent illegal conversions of agricultural land. Responding to allegations of sub-registrar collusion with land sharks, Gowda highlighted that a new bill, pending the President's assent, aims to curb such activities. The government also addressed issues related to the regularisation of houses on government land and the usage of 'Kumki' land. These measures aim to protect legitimate property owners and ensure accurate land records....
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MHADA lottery attracts 46,532 applications for 4,850 flats in Pune

A recent MHADA lottery for 4,850 flats in Pune, Pimpri Chinchwad, Tathawade, Solapur, and Sangli saw an overwhelming 46,532 applications, indicating a high demand for affordable housing. Housing Minister Atul Save announced the figures, highlighting the intense competition of 9.6 applicants per flat. The lottery's Inclusive Housing Scheme was particularly popular, receiving 46,477 applications for 1,372 flats. With 2,423 flats still available on a first-come, first-served basis, and plans for future lotteries, the Maharashtra government aims to address the housing shortage through inclusive housing schemes and frequent lotteries....
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Goa's new bill to prevent illegal sale of unclaimed properties

The Goa State Cabinet has approved the introduction of the Goa Escheats, Forfeitures and Bona Vacantia Bill, 2024. This bill aims to empower the state government to take over properties of individuals who die without legal heirs, as well as properties without a rightful owner. The proposed law will grant the state government the authority to manage, administer, and dispose of such properties. It establishes a comprehensive legislative framework to govern the management of properties that have escheated, lapsed, or are considered bona vacantia. The bill ensures due process for potential claimants while also safeguarding the state's interests....
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UP-RERA summons 18 builders and authorities for online hearings

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a public notice summoning Noida and Greater Noida authorities and 18 builders for online hearings to resolve complaints from 32 homebuyers. The grievances involve delays, construction quality issues, and contractual breaches, causing significant distress for the homebuyers. These hearings, conducted by the Lucknow and Gautam Buddh Nagar benches of UP-RERA, aim for faster and more convenient dispute resolution. This proactive approach by UP-RERA seeks to protect homebuyers' rights and set a precedent for swifter resolutions in Uttar Pradesh's real estate market....
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Supreme Court intervenes to protect home buyers from subvention scheme fallout

The Supreme Court has provided relief to homebuyers facing financial distress due to delayed possession of flats under the subvention scheme. Banks had been pressuring homebuyers to repay loans despite delayed projects. The court has halted coercive actions against homebuyers and directed builders to provide details about their assets. The decision highlights the need for regulatory reforms in the subvention scheme to protect home buyer interests and prevent similar issues in the future....
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High Court orders inclusion of real estate promoters in legal proceedings

A recent High Court order has stressed the need for including promoters and directors of real estate companies in legal proceedings after homebuyers faced difficulties recovering losses from delayed projects. The ruling highlights a tactic where developers declare bankruptcy while promoters evade accountability, often by starting new companies. This decision aims to ensure greater accountability and recovery chances for affected buyers. Homebuyers are advised to include promoters and directors in complaints and conduct thorough due diligence before investing. The Karnataka Home Buyers Forum supports the ruling, urging buyers to follow these guidelines to protect their interests....
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RLDA invites bids for prime land parcel at Renigunta junction

The Rail Land Development Authority (RLDA) is inviting bids to lease a 5,532 sqm land parcel at the Renigunta in Tirupati, Andhra Pradesh for 45 years, with a reserve price of INR 6.77 crores for a 7,502 sqm built-up area. Located near the Renigunta Junction Railway Station, the site is accessible via major highways and is adjacent to key landmarks like the Hotel KR Bhavan and the Tirupati Airport Road. Renigunta's connectivity and proximity to the Tirupati Temple make it ideal for retail or hospitality development. The Tirupati Railway Station's major upgrade further enhances its commercial potential....
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Andhra Pradesh government pushes to complete plot registrations under LPS

The Andhra Pradesh government has decided to send special teams to capital city villages to complete plot registrations under the Land Pooling Scheme (LPS). Delays in registration are hindering development by the Capital Region Development Authority (CRDA) in Amaravati. The CRDA registered about 43,000 of the total 64,000 plots, with around 21,067 plots still pending. The government aims to finish registrations quickly to grant farmers their promised rights and move forward with infrastructure projects. The government believes that such delays in the plot registration process are causing more legal issues for the Capital Region Development Authority (CRDA)....
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Panchkula residents gear up for legal battle against S+4 construction policy

Panchkula residents, led by the Panchkula Citizen Welfare Association (CWA), are gearing up to challenge the Haryana government's stilt-plus-four-floor (S+4) construction policy in the Punjab and Haryana High Court. This policy, initially approved in 2017, permits buildings with four floors above a stilt and faced rollback in 2023 after widespread protests. However, it was reapproved in July. Residents argue that the policy causes extensive property damage and claim the government is influenced by builders. The CWA, supported by various welfare associations, is organising protests and intends to hold the government accountable in upcoming elections....
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RERA resolves 1.25 lakh complaints, transforming India's Real Estate sector

The Economic Survey 2023-24 highlights that RERA has resolved nearly 1.25 lakh consumer complaints and registered 1.3 lakh real estate projects since its enactment in 2016. Designed to reform India's real estate sector, RERA aims to enhance transparency, accountability, and financial discipline, thereby protecting homebuyers and boosting market confidence. Key achievements include the establishment of fast-track dispute resolution mechanisms and mandatory project registrations. With comprehensive rules notified in all states and Union Territories except Nagaland, RERA has significantly improved consumer protection, ensuring developers meet their obligations and fostering a more transparent, accountable, and efficient real estate environment....
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Karnataka High Court permits Ozone Urbana buyers to include promoters in compensation claims

Homebuyers in Bengaluru's delayed Ozone Urbana project, developed by Ozone Group, have achieved a key victory. The Karnataka High Court ruled that Ozone Group promoters can be included in legal proceedings. Buyers had sought refunds exceeding INR 4 crore (USD 4.8 million) through the Karnataka Real Estate Regulatory Authority (KRERA). The ruling allows targeting promoters' personal assets, addressing a major gap in the Real Estate (Regulation and Development) Act, 2016. Despite regulations, KRERA reports developers owe over INR 486 crore (USD 5.8 million) for delayed projects, highlighting the need for further reforms to protect homebuyers....
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India to solarise all government buildings by December 2025 under PM Surya Ghar Yojna Scheme

The Indian government is launching the PM Surya Ghar Yojna Scheme to install rooftop solar panels on all government buildings, aiming for 100% solarisation by December 2025. The Ministry of New and Renewable Energy (MNRE) has partnered with Tata Power Renewable Energy Limited (TPREL) for design and installation and NHPC Renewable Energy Limited (NHPC-REL) for project oversight. This initiative will harness clean energy, reduce fossil fuel reliance, lower carbon footprints, and cut costs. The scheme underscores the government's commitment to renewable energy and sets a strong example for businesses and individuals, promoting a nationwide shift towards solar power....
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UP-RERA introduces QR codes for 1 lakh real estate projects to boost transparency

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has recently assigned unique QR codes to approximately 1 lakh registered real estate projects in the state. These QR codes link directly to detailed project information on the UP-RERA portal, allowing homebuyers to access essential details including land documents, project layouts, timelines, and amenities by scanning with a smartphone. This move enhances transparency and empowers buyers to independently verify project details, avoiding reliance on potentially misleading developer information. Developers must now include these QR codes in all documents and promotional materials, ensuring a more informed and secure property investment process....
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ED freezes INR 300 crore land in Gurugram linked to M3M Group on allegations of fraud

The Enforcement Directorate (ED) has seized a plot valued at INR 300 crore from M3M Real Estate in Gurugram as part of a money laundering investigation linked to politician Bhupinder Singh Hooda. The 88.29-acre land in Basharia village is implicated in alleged fraud involving undervalued land acquisitions and manipulative practices. The probe reveals that Hooda and associates, including RS Infrastructure Pvt. Ltd., used deceitful methods to acquire land below market value, resulting in financial gain and losses for landowners. M3M disputes the claims, arguing that the seizure overlooks their legitimate business practices and economic contributions....
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Bombay HC directs society members to pay INR 5 lakhs or vacate property for redevelopment

The Bombay High Court has asked seven members against redevelopment of Taruvel CHSL building to vacate their flats or pay INR 5 lakhs within two week. When 8 out of 84 members refused to vacate their flats, DEM Homes LLP took the matter to the court, after which one vacated his flat. Advocates of the members clarify that the developer is not willing to provide them with permanent alternate accommodation while the developer advocates argue that an agreement will be executed with them and treat them equally. The Justice Doctor said that the argument presented by the member is incorrect....
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Kolkata Municipal Corporation enforces stricter rules to prevent illegal constructions

The Kolkata Municipal Corporation (KMC) plans to amend building regulations to prevent the legalisation of unauthorised constructions exceeding 10% of the permitted area. Mayor Firhad Hakim announced a strict stance against illegal buildings, allowing minor regularisation but not for significant plan changes. A senior KMC official highlighted the difficulty of dealing with buildings where entire floors were added without approval. Following a tragedy in Garden Reach, KMC withheld completion certificates for many new buildings due to rule violations. Hakim urged the police to take quicker action against unauthorised constructions and called for a ward-wise campaign to inform citizens about new rules. The KMC aims to ensure strict adherence to building regulations and promote safer, more orderly development in Kolkata....
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SEBI to auction 19 properties of non-compliant companies to recover investor funds

The Securities and Exchange Board of India (SEBI) will auction nineteen properties from seven companies on August 12 to recover funds illegally collected from investors. The companies include Mangalam Agro Products, Sun Plant Business Ltd, and Sumangal Industries. Other firms involved are Sunheaven Agro India, Ravi Kiran Realty India Ltd, Jivan Sathi Dream Projects, and Purusattam Infotech Industries. The properties, located in West Bengal and Odisha, have a reserve price of INR 20.74 crore. The online auction will be conducted from 11 am to 1 pm, assisted by Adroit Technical Services. SEBI advised bidders to verify property details independently....
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