12 Aug 2024

The Securities and Exchange Board of India (SEBI) has imposed restrictions on the real estate company Omaxe, its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others, excluding them from accessing the securities market for two years. This action followed a complaint alleging Omaxe's involvement in fraudulent transactions, fund diversion, misrepresentation of financial statements, and inflation of turnover. SEBI conducted a forensic audit covering the period from 2018-19 to 2020-21 and found that Omaxe had misrepresented its financial statements to manipulate its share price and maintain the value of the promoters' collateral against a loan. The regulator has also imposed a fine of INR 47 lakh on 16 entities, including Omaxe and its key personnel.Read more

12 Aug 2024

On 3 June, the National Company Law Tribunal (NCLT) admitted Jaypee Associates Limited (JAL) for insolvency proceedings. This decision came after a petition was filed by a consortium of lenders led by ICICI Bank. The lenders approached the NCLT due to JAL's inability to meet its financial obligations. The insolvency process aims to resolve JAL's debt issues and identify a suitable resolution for the creditors. The company plans to refinance borrowings and sell its assets, including real estate and cement plants, in order to reduce the debt burden. Legal provisions may allow JAL to withdraw from insolvency proceedings, pending creditor approval.Read more

12 Aug 2024

The Greater Noida Industrial Development Authority (GNIDA) has announced a six-month penalty waiver for around 40,000 homebuyers unable to register their flats due to developers' unpaid dues. Effective from July 22, this relief applies across 60 projects, allowing buyers to complete registrations without fines. Historically, GNIDA's penalties could reach INR 50-100 daily, creating financial strain. This initiative, influenced by homebuyers' associations, aims to rectify issues from unregistered flats and stalled projects. It is part of broader efforts to support homebuyers and stabilise the real estate market in Greater Noida.Read more

09 Aug 2024

The MMRDA plans to evict illegal occupants from 1,336 tenements in Kurla, initially meant for slum dwellers displaced by airport expansion. The operation, set from October 7 to 10, follows the discovery of unauthorised residents by MMRDA in 2021. Originally built by HDIL for Bharat Nagar slum rehabilitation, these units now house individuals who paid up to INR 5 lakh to agents. Local activists and advocates highlight issues with lease renewals and unpaid rents. The eviction underscores Mumbai's housing challenges and the need for better oversight and transparent rehabilitation processes.Read more

09 Aug 2024

The Supreme Court has requested the Chief Justice of the Bombay High Court to form a bench to initiate its own review of the Maharashtra Slum Areas Act of 1971. This review aims to identify issues in the law's implementation. With over 1,600 cases pending, the law's implementation faces significant problems. The Supreme Court directed the Chief Justice to form a bench for this crucial review, emphasising the judiciary's critical role in ensuring access to justice. The decision came during the dismissal of an appeal from Yash Developers, who faced the cancellation of a long-delayed slum redevelopment project.Read more

09 Aug 2024

The Noida Authority aims to sell over half a million square metres of land in FY 2024-25 to raise more than INR 3,700 crore. Land will be allotted across residential, industrial, institutional, group housing, and commercial segments through e-auctions. The Authority expects to generate INR 1,080 crore from group housing plots, INR 1,010 crore from commercial land, INR 705 crore from industrial plots, INR 650 crore from residential plots, and INR 315 crore from institutional plots. Additionally, INR 35 crore is expected from allotting empty residential spaces. Schemes for these categories will be launched soon.Read more

09 Aug 2024

The Karnataka Real Estate Regulatory Authority (KRERA) has mandated GVG Infrastructure Pvt Ltd to refund INR 34.7 lakh to homebuyer Dhimosh Mangadan for failing to complete the Mulberry Mist project in Varthur, Bengaluru, on time. Despite an August 2019 deadline, the project remains unfinished. KRERA's order, issued on July 10, also demands an additional INR 11.5 lakh in interest. This case highlights Bengaluru's real estate issues, with over 26,030 delayed housing units valued at INR 28,072 crore. Across India, approximately 5 lakh homes are stalled, emphasising the need for stricter enforcement of developer accountability.Read more

08 Aug 2024

The Supreme Court has directed the Haryana government to provide detailed information on affordable housing projects licensed over the past decade. This directive arises from the ongoing legal battle involving buyers of Mahira Homes in Sector 103, Gurugram, who have invested approximately INR 160 crore in a stalled project. Issued on July 22, the court's order mandates the Department of Town and Country Planning (DTCP) to furnish details on flat costs at launch, approved layouts, and amendments to building plans. The court seeks to ensure transparency and accountability in tripartite agreements between builders, homebuyers, and banks. With 73 affordable housing licences issued in Gurugram, many projects, including Mahira Homes, have seen minimal progress, raising concerns about regulatory enforcement. The next hearing is scheduled for September 27, with significant implications for future housing project oversight in Haryana.Read more

08 Aug 2024

The Delhi High Court has ordered a CBI inquiry into the misuse of Public Interest Litigations (PILs) following concerns raised by the Municipal Corporation of Delhi (MCD) regarding a law student, Rahul Kumar, who has filed 42 PILs related to unauthorised construction. The court, led by Acting Chief Justice Manmohan and Justice Tushar Rao Gedela, expressed alarm over PILs being potentially exploited, with only 17 of Kumar's petitions listed for hearing. The MCD argued that Kumar's actions suggested a pattern of misuse, as many petitions were not pursued effectively. The court mandated a CBI preliminary investigation to determine if any legal violations occurred, with findings expected by the next hearing. This decision underscores the judiciary's commitment to maintaining the integrity of the legal system and may prompt stricter guidelines to prevent PIL misuse, ensuring they serve genuine public interest.Read more

08 Aug 2024

The Kerala government has revamped the Land Disposal Regulations (LDR) to boost industrial development. Key changes include extending lease periods from 30 to 60 years, and up to 90 years for investments over INR 100 crore. The revised regulations also allow subleasing of industrial spaces and introduce a new instalment scheme to ease financial pressures on investors. These updates reflect Kerala's strategy to enhance its industrial ecosystem and attract significant investments. By modernising land policies and investing in infrastructure, the state aims to become a major industrial hub, appealing to both domestic and international investors.Read more