Niranjan Hiranandani

According to Niranjan Hiranandani, MD of Hiranandani Communities and Founder-First President of NAREDCO (National Real Estate Development Council) Maharashtra that works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India, stated that Infrastructure projects and their timely completion are responsible for the success and growth of Mumbai Metropolitan Regions and Mumbai’s real estate market.

While elucidating these aspects Niranjan Hiranandani explains few projects such as; the Sewree–Nhava Trans-Harbour Bridge has increased the Metro connectivity whereas; Pinjal River project was necessary for real estate development and its growth in Mumbai and MMR. The more he added that these aspects and projects has changed the land use and its development in zones with granting of FSI and its proper usage of reclaimed land. He also pointed out that Mumbai can be the largest flower bed with surrounding Mumbai’s coast but for that it need to have the coastal road for Mumbai; apart from that it has potential to increase the green cover and ecological balance.

While addressing the context of real estate development and its growth in Mumbai city Niranjan Hiranandani stated that Infrastructure and development is necessary for growth of real estate sector”. The more he added that 4000 acre of saltpan land in Mumbai have a potential to create 5 to 5.5 lakh affordable housing units, however; the improvements of slum areas in all over the city is essential and for that we should implement slum policy which can effectively solve the  problem of affordable housing in Mumbai.

However; to bring the development in the MMR, he said that vision of the Project Naina has been shared with Devendra Fadnavis, the Chief Minister of Maharashtra as it is expected that project Naina is able to add around two times the land area of Mumbai to the MMR in form of a city and it has potential to complete the vision of Prime Minister which is the “Housing for All”.

Niranjan Hiranandani

If you are the one who is seeking for affordable housing unit in Maharashtra, so here is good news for you as recently NARDECO or the National Real Estate Development Council has come up with news in festive season that it is going to build more than one lakhs affordable housing units with no profit and no loss.

NARDECO is the umbrella developer body which works under the Ministry of Housing and Urban Poverty Alleviation, Government of India has recently announced that they are going to construct affordable housing unit. Niranjan Hiranandani, Founder and First President of NAREDCO, Maharashtra stated that this is possible, and we can do it. The more he added that high cost of the land is big hurdle in the construction of affordable housing units, but this issue could be easily resolved if the state government can provide salt pan land for those projects which are affordable and with no profit and no loss objective. Niranjan Hiranandani stated that “We are planning to put forward this proposal in front of Devendra Fadnavis, Chief Minister of Maharashtra. We will meet him with all the details of affordable housing project and our main objective will be to make sure that one lakh low-cost and affordable houses get built every year for next five years in MMR (Mumbai Metropolitan Region) with the co-operation and support of state government”.

According to Niranjan Hiranandani, Game plan is very simple; At NAREDCO, Maharashtra we will deploy all the best possible technologies and equipments to make sure that cost of these project get within the budget. In Maharashtra there are several region where land for these kinds of projects are available, if state government will allow us to use land for these projects, so real estate developers who are the member of NAREDCO will build such housing units not in juts MMR region, but in all over Mumbai. The more he added that at this point of time we want to earn good name for entire industry and on the same time we want to help people to own dream homes in affordable price. Through this initiative it will be easy and clear to help people to get dream homes in reasonable price.

This is positive idea and there are many real estate developers who are ready to construct and help in these kinds of projects for a specific number of houses. There is no pressure in this project because we have seen real estate developers are voluntarily coming up with numbers of homes which they want to build.

Affordable homes in next one year

NARDECO (the National Real Estate Development Council), the umbrella developer body was formed under the ruling of Ministry of Housing and Urban Poverty with an objective to alleviate the work of central government. Niranjan Hiranandani, MD of Hiranandani Constructions Pvt. Ltd is now act as the president of Maharashtra NARDECO unit.

The National Real Estate Development Council has decided to construct one lakh affordable homes on the basis of no-loss no-profit. However; with this condition government has to provide land for the construction of homes. Niranjan Hiranandani, President of Maharashtra NARDECO unit stated that soon we will meet Chief Minister Devendra Fadnavis with detailed plan of action for the construction of affordable homes. Apart from that he also ensured that over one lakh affordable and low-cost houses to be built each and every years for the next five years in MMR (Mumbai Metropolitan Region) in sync with the government of Maharashtra. The more he added that “It will ensure the delivery of best possible technology at lowest possible cost. However; the allotment of the housing units will be based on the certain criteria and lottery system.

“If state government will provide land for such developments, so we will be able to construct home in Mumbai too. We want to earn good name and reputation in all over country. We want to show that this initiative aim to complete the dream of people, which is to own home in Mumbai. After throwing this idea now many real estate developers are coming forward and taking their responsibility to build certain number of houses” said Hiranandani.

Few Builders have different strategy:

According to Pankaj Kapoor, MD, Liases Foras, the real estate research firm, “In Mumbai real estate developers will never construct affordable home, no matter you provide them land or not. Because; first thing; Why we need real estate developers to construct affordable homes at government land? Government needs contractors to construct homes rather than the developers, apart from that urban bodies such as; CIDCO and MHADA should stop their habit to sell land in the open market rather use them for the construction of houses only”.

Private-Consultant

As a part of new initiative “Ease of Doing Business”, BMC is planning to reduce the building permissions from over more than 150 buildings to 70 buildings. However; according to the reports of construction industry, it is“Eyewash” stating that there is need of proper building approvals system in all civic bodies which are dominated by the rampant corruption and delayed process to knock out money from real estate builders. But engineers and officials are calling it hot shot. Now architects are summoning to the real estate building proposals office at late night to process the relevant files.

On last Friday, Ajoy Mehta, Civic Body Chief informed that there are many civic group leaders who are not approving building permissions within the 90 days. However; in other cities of the world such as; Dubai and New York it takes only 90 days to get all kinds construction approvals for residential and commercial buildings. To sort all these kinds of issues now BMC has decided to bring down the number on building approvals and permission which is expected to drop by 150 buildings to 70 buildings. However; real estate builders are skeptical if move will work to get the solution which known as rampant corruption in BMC and it is the main reason of delay and getting approval for proposals.

Private consultants will help the real estate builders to get NOCs:

Now Civic Body is allowing real estate builders to take the help of private consultants to get the  no-objection certificates (NOCs), however; earlier real estate builders were sued to take the help of civic officials in exchange of money. In present, real estate developers have to procure no-objection certificates from different departments such as; traffic, fire brigade, hospitals and more. Cooperators said to Chief Minister, Devendra Fadnavis and Shiv Sena Chief Uddhav Thackeray will be requested to release the new building proposals booklets which were including commercial and residential buildings. These leaders were representing different political parties and to stop the corporation in civic body they try to sabotage the new rules because there are few corrupt officials which are used to create hurdles to get NOCs. The development plan (DP) and building proposals (BP) departments are directing reporting to the municipal commissioner.

Effect on Civic Body:

According to the Rais Shaikh, Group Leader of Samajwadi Party, “It is very nice initiative to bring in transparency in all civic departments. The building proposals department is one of the most corrupted units in civic corporation”. In present, it can take more than years to complete the all the procures for building permissions. Now administration wants to fix the time duration to complete all the procedure. Earlier, real estate builders were used to get the different NOCs at different stages, now they are deciding to not to hold back one NOC for others. And civic body is planning to make the procedure faster by issuing all permissions in 90 days, as per the statement of Yashodhar Phanse, Shiv Sena Corporator and Standing Committee Chairman. It is expected that this new rule will bring more transparency and provide an opportunity to do more friendly business. As per the statement of Manoj Kotak, BJP Group Leader, “Less time duration and fewer windows for clearances will mean reduce the chance of corruption”.

Construction industry have many other issues which needs to be sorted out and now BMC is planning to reduce the number of permissions as the best possible solution, but while claiming other issues it still needs to be addressed. However; the good thing that civic body has not reduced the tiers of approvals as well as of officers a real estate builder has to go to get the permissions. But for instance, the number of files and documents required just submitting a building proposal is 34.

“Ease of Doing Business” new initiative of BMC:

According to architects, the other major hurdle is the software of BMC which is not more than junk and every time civic officials are used to force it to get the desired result. According to real estate builders, we are welcoming the new initiative of BMC which is “Ease of Doing Business” because it is expected that it will not reduce corruption. Architects are called at midnight to the building proposal department by some engineers. But at some corner the industry is upset because to get freedom from corruption now civic body is decreasing the number of approvals. According to recent study, suburban developer had to pay security as well as premium fees more than 86 times at 14 different places within the BMC for a single project.

Leelaventure sold for 725 cr.

The luxury hotels operator Leelaventure Ltd. has sold its Goa property to a Malaysian company for Rs 725 crore ($111 million). According to sources, this move has been taken to cut its debt.

MUMBAI : The state government on Saturday took a landmark decision to provide deemed conveyance certificates to housing societies within six months of the date of application. This will bring much relief to many housing societies that are knocking on the doors of the cooperation department for deemed conveyance.

A senior bureaucrat confirmed to TOI that the department has promulgated an order under Maharashtra Right To Public Services Act to make it mandatory to provide the certificate within six months. “Under the Act, we have proposed to provide four services in a time-bound manner,” he said.

He added that a cooperative society will now be registered within two months, money lenders’ licence and renewal will be done in two months from the application date. “An official order for the purpose has been notified on Saturday,” he said.

Soon after chief minister Devendra Fadnavis took over in October last year, he had promised that his government would bring in a stringent legislation to provide basic services to people, and in a time-bound manner. The CM had introduced the Right To Services Bill in both houses of the state legislature. As it could not be passed, an ordinance was promulgated for the purpose. Fadnavis’s contention was that if red-tapism and corruption have to be stopped, basic services must be delivered in a timely manner. “For efficient, transparent governance, we will provide 110 services in a time-bound manner,” he had told the legislative assembly.

Under this Act, if an official fails to provide information within the prescribed period, s/he is liable to pay a penalty between Rs500 and Rs5,000.

“The CM is keen that before he completes a year in office, all departments must issue an order with specific services and time required to provide them,” said the bureaucrat.

Leelaventure has traded the 206-room hotel in Goa to a unit of MetTube Sdn Bhd, the Malaysian company but will continue to manage it on contractual basis, it said in a statement. The Goa hotel accounted for 15 per cent of Leelaventure’s total income for the financial year to 2014 – 15.

The deal, which is the biggest single asset acquisition in India’s hospitality sector, is expected to close by end-December.

BKC Area

As per the response to an RTI query, Mumbai Metropolitan Region Development Authority (MMRDA) would levy additional premium charges on Reliance Industries Ltd. (RIL) a company led by Mukesh Ambani for delay in development of a joint property in the posh BKC area. The amount of penalty would be Rs.341 crore for failing to develop the plot C 66 in the G-Block of BKC as a commercial building with car park within a stipulated period of four years. MMRDA informed that the amount has been due for the last 34 months.

An RTI activist Anil Galgali had filed a query with MMRDA wherein he sought details of the plot of the new business district in the central part of the megapolis. MMRDA said that plot No C-66, ad-measuring 10183.18 square metres, was leased to RIL on September 27, 2008 for Rs 918.03 crore and allowed development of 30,550 square metres of commercial space and 20,366 square metres for public parking. The RTI reply was furnished by an official of the Town Planning Division.

When RIL spokesperson was contacted, he informed that the construction is now almost complete except some final touches but blamed Raghuleela Builders Pvt. Ltd. (the developer) for the delay in construction. The developer has a tripartite agreement with MMRDA and RIL for development of the property.

RIL also argued that the delay in payment should not be termed as ‘default’ because as per the request for proposal (RFP), the developer can make the payment along with interest till the time he seeks occupation certificate (OC) or before the final completion certificate is granted. This is duly permitted by the MMRDA.

Besides One BKC, Reliance Industries is also building a huge convention centre in the business district, where it has developed a public park named “Jio Park” and was recently dedicated to the city.
Meanwhile, Galgali has demanded that MMRDA should issue a stop-work notice to RIL immediately and recover the additional premium first with interest and penalty. He said that he has written a letter to MAHA-CM Devendra Fadnavis as well as Metropolitan Commissioner U P S Madan over this blatant violation of rules and has demanded strict action against RIL.

There was no response to the query from Dilip Kawathkar, Joint director for projects at MMRDA.

Image credits_DNA

Last week July 28, 2015  after 13 hours of rescue operation, state authorities and NDRF team pulled out nine dead bodies, and rescued 15 people from the debris of a two-storey building, which is located in Thakurli and collapsed due to heavy rain.

According to recent reports, all 15 people who were rescued, excluding 10 injured people are treated at Shastrinagar civic hospital at Dombivli and in two other private hospitals. However; after the accident the Dombivli police registered a complaint as well as case against the building owners; Dropadabai Sakaram Patil as well as her two sons Sharad Sakaram Patil and Ramdas Sakaram Patil. The police stated that owners are absconding since the incident and in past they were repeatedly neglecting the notices from the KDMC (Kalyan Dombivli Municipal Corporation). Whereas; KDMC authorities stated that since 2009 we have declared that building as dangerous building and in last five years we have sent notice more than five times about the concern of building safety and they have also recommended to re-check the  status of the building with skilled architects for repairing or demolish it. But every time owner neglected the notices, stated SB Shivarkar, who is senior police inspector associated with Dombivli police station.

All the three owners have been booked under Section 338 for causing grievous hurt by act endangering life or personal safety of others, Section 34 for common intention and Section 304 for punishment for culpable homicide not amounting to murder of Indian penal code. Meanwhile the team of NDRF (National Disaster Rescue Force) and team of KDMC (Kalyan-Dombivli Municipal Corporation) jointly conducted the rescue operation, however; as per the statement of Sudhakar Kulkarni, fire officer at KMDC, “At 1 PM we have ended the rescue operation and later again we have started the demolishing the rest of the building”. Constructed in 1972, more than 25 families were living in Matrukrupa building as there were 26 flats in the building, out of which 16 collapsed on Tuesday night. Before five years, building was declared unsafe and from past many years KDMC has been sending notices to the owners to vacate it, but always they refused to do same.

Hirday Narayan Yadav, 45 years old resident of building had a very narrow escape with his family. He stated that we lived at ground floor and just before collapse, I saw windows and doors are shaking and I immediately asked my family members to vacate the place, however; I have also alerted others. And as soon as we ran out from building, the staircase collapsed and other people stuck on the building’s Ist and IInd floor. According to Ishwaran, another resident of building, “Me and my daughter rescued, but my husband could not be saved”. After the end of rescue operation, immediately,  KDMC began demolishing the building, however; there were group of people who were protesting by saying that they didn’t get opportunity to collect their belongings, we will not stop you from demolishing, but first let-us collect our belongings, which is pretty essential for us”.

Apart from that the pother people who were living nearby, also asked to vacate their flats because of safety reasons, however; the Vinayak Pandey, KDMC ward officer stated that Its essential for us to demolish the entire building because of safety reasons”. However; Kiran Surose, Kalyan tehsildar added that we have sent a proposal to chief minister Devendra Fadnavis to provide compensation to the victims.

Immovable properties can now be transferred to blood relatives without any stamp duty.

All the immovable properties such as; land, house or flat can now be transferred to blood relatives or children’s without any stamp duty on registration. It is expected that this will be the major relief for millions of families who are living in Maharashtra, as now onwards they don’t have to pay 5% of the ready reckoner rate of the property as stamp duty.

Revenue minister Eknath Khadse, make the announcement by saying that, an affidavit on a Rs 100 stamp paper would be sufficient. He later changed his statement by stating that now government no longer deals in Rs 100 stamp paper for property matters, so you need to pay Rs. 500. While in other decisions he announced in the House on Wednesday, that those who own 500sq ft or smaller homes than this, now they do not have to pay the increased property tax and now government will allow them to twice the transfer of development rights to a landowner in lieu of land surrendered for a public amenity.

For the reply on a discussion on the budgetary allocation for urban development department, Chief Minister Devendra Fadnavis stated that the government is framing a new policy, as TDR will be indexed to the ready reckoner rate to, it will prevent them to earn a windfall from the use of TDR of one area in another. The main aim of decision is to increase the TDR as it was taken as the new Land Acquisition Act has increased compensation, whereas; the RR rate of the area where it is being utilized will apply, the more he added.

Khadse state that the decision to waive stamp duty on immoveable property being passed to heirs will cost the exchequer Rs 350 crore annually, as a construction amenity TDR or incentive TDR will be offered to a land-owner in addition to the regular TDR if he develops an amenity and hands it over to the local body. For land and other property, the ready reckoner rate has gone up considerably even if the owner does not sell them at that rate in the market.

For this we have received a large number of complaints from every part. They have been demanding to know that why should they need to pay a huge amount to government while transferring a property to their own blood relatives or children’s. Hence, Government of Maharashtra has decided to do away with the stamp duty,” he said.

Recently, Devendra Fadnavis, Chief Minister of Maharashtra assured the industrialists for quick and speedy completion of key infrastructure projects in Mumbai and its suburbs and he allowed the Mumbai’s civic body to float municipal bonds for the first time ever. In a conference, to transform Mumbai, Devendra Fadnavis, stated that it is expected that an ambitious 35-km long coastal road linking the city’s northern and southern extremities will be completed in next two years whereas; the work on the 22.5 km Mumbai trans Harbour link, which will link the Sewri in the island city to the mainland, will start by the end of 2015 and by the time the new airport is ready, which is 2019. CM Fadnavis, the more added that I know it is impossible, however projects much bigger than coastal road have been completed before two years. So let’s try to do it.”

Most of the Mumbai’s infrastructural projects have been delayed due to poor planning and over cost that can cause frustration and anger between the city’s harassed office goers and as well as harassed commuters. it is well known fact that a 4.7 km bridge linking Bandra to Worli took more than 10 years to build whereas; a flyover between Santa Cruz and Chembur took more than 11 years and they cost more than Rs 450 crore, which is pretty high. But CM was sounding positively as he stated that state government was willing to willing to stick their neck out to set an example. It is expected that environmental clearances for coastal road and other projects will be given by the end of monsoon followed by bids for road construction.

Arun Jaitley, Union Finance Minister stated in the conference that through a video link and by giving his support for developing Mumbai as a financial centre. This conference was held to brainstorm the ideas for the development of Mumbai as the world class financial capital of country, so that it can represent the host of industrialists, Jayant Sinha, who is the Union Minister of State for Finance, Fadnavis, other cabinet colleagues and state bureaucrats. In the conference, CM Fadnavis also allowed to Brihamumbai Municipal Corporation to float municipal bonds and it was for the first time when Commissioner Sitaram Kunte complained that they need such flexibility.

Municipal bonds will allow the civil bodies to get the fund from the market to fund the development work for infrastructure projects without relying on the state largesse or tax increases. BMC, which is the richest municipal body in Asia has a budget of Rs 33,514 crore, and it is more than then the market of Punjab National Bank,, which is the fifth largest PSU bank in terms of assets. Giving an instance of how his government has been taking quick decisions, the CM stated that in past two months our state had given sanction to more than 25 development plans that were in the line.

LEDs will light up the Marine Drive

Soon you will experience the pleasant look in Queen’s Necklace while driving in night because this place will be brightly lit up by LED’s by the end of this month. State government has been decided to implement the LEDs in place of streetlights. The same will be implemented in the other parts of city and its suburbs by the end of October 2015. On January 2, 2015 the decision was made after the meeting between senior officials of the state, centre and civic body. Devendra Fadnavis, Chief Minister of Maharashtra, will inaugurate the pilot project on January 31, 2015 at Marine Drive. The same day he will also visit the Mulund in the central suburbs and Bandra in the western suburbs to see the installed LEDs.

In present, there are more than 1.32 lakh electricity poles in all over the Mumbai and there are more than 2.5 lakh high-pressure sodium lamps are working on these poles, in which some poles have single lamps and others have two or three at per pole. It is expected that the conversion of sodium lamps to LEDs on in the light-emitting diodes will emit more light in night for the comfort of drivers and on the same time it will save at least 30 per cent of electricity. It is expected that the total cost of conversion will be approx. Rs 250 crore, which will be paid by BMC (Brihanmumbai Municipal Corporation) in a phased manner. This decision was made after the meeting between Piyush Goyal, Union Power Minister; Chandrashekhar Bawankule, State Power Minister, Ashish Shelar and Amit Satam, Legislators; Sitaram Kunte, Municipal Commissioner; SVR Srinivas, Additional Municipal Commissioner; OP Gupta, General Manager of BEST and other officials from the Energy Efficiency Services Limited, which is a a subsidiary of the Central government.

Ashish Shelar, a Legislator, stated that, “These LEDs will the annual electricity cost of Municipal Corporation. According to records currently, BMC is paying Rs 164 crore to various agencies that maintain the sodium lamps, but after the implementation of LEDs the annual electricity cost will reduce by Rs 80 crore, which is 50 per cent of annual electricity cost. The more he added that the Centre’s subsidiary will put up these lighting systems, operate and maintain the lights for seven years.

According to anonymous sources of BEST, who did not want to disclose their names, “There are plans to cut the costs at bus depots and government offices with the help of LEDs as it can help to save money.