A union of engineers of the BMC has condemned the arrest of two civic engineers in connection with the collapse of the foot overbridge near Chhatrapati Shivaji Maharaj Terminus

In a letter addressed to civic chief Ajoy Mehta, the Brihanmumbai Municipal Engineers’ Union (BMEU) said that the engineers working in the bridge department could not be held solely responsible for the collapse of the foot overbridge (FOB) at Chhatrapati Shivaji Maharaj Terminus (CSMT) that had left six people dead. So far, two engineers of the Brihanmumbai Municipal Corporation (BMC) – assistant engineer SF Kakulte and executive engineer AR Patil – have been arrested by the Mumbai police, in connection with the FOB collapse.

The BMC engineers are ‘civil servants’ carrying out their ‘specified duties’, the BMEU said. “Municipal engineers are always overloaded with work, due to the shortage of staff. In this case, the exact cause of the bridge collapse is yet to be established. Further, a consultant was also appointed to give structural a stability report of the bridge. It is also understood that some cosmetic changes were carried out, under the control of assistant commissioner in ‘A’ ward, in 2016. In such cases, only engineers working in the bridge department cannot be held responsible,” the letter said.

“If there are any lapses in the supervision or any other service, punishment for that should be given as per the Municipal Service Rules,” the union said. Referring to the collapse of a British-era bridge on Savitri river at Mahad in Raigad district of Maharashtra, during the 2016 monsoon, it said it was appropriate that no action was taken against engineers in that case, as it was an ‘accident’. “The arrest of engineers, who are civic servants, gives a very bad message to the engineers working in the BMC. In future, such action will definitely prevent the entry of good engineers in the BMC,” it said.

The bank account statement that home loan lenders ask for, is used to ascertain your financial activities during the period and will bare your saving and spending habits to the prospective lender

While granting a home loan, lenders generally ask the applicants to submit a copy of their bank’s account statement, for six months to a few years. These are very important documents from the lender’s perspective, for determining the applicant’s home loan eligibility. Here’s what the lenders look for, in a bank account statement.

1. The existence of any loan being serviced

From the bank statements, the lender can easily find out the existence of any loan(s) being serviced, in case identical amounts are debited at regular intervals. The existence of any such loan, will help the lender in deciding your loan eligibility amount. An existing loan, will reduce your overall home loan eligibility.

2. The level and nature of activity

For self-employed persons, the lender asks for bank statements of the account, where the business or professional income is credited. These statements, will help the lender in verifying the level of business activity like sales/receipts and compare it, with the one declared in the income tax returns or in the loan application form.

It will also help the lender to identify huge cash deposits or withdrawals. Huge cash deposits in the account, will create doubt, unless the nature of the business warrants such deposits.

For salaried people, bank statements enable the lender to verify that the salary purported to be shown in the income tax return, is in fact credited in the bank account. In case the salary is credited month after month and the amount is also similar, it points to the salary being genuine. In case the amount of salary, as shown in the income tax return, is not credited month after month in the bank statement, it is sufficient for the lender to view such credits with suspicion.

3. Inward and outward cheque returns

Bank charges that are debited for bounced cheques or those that are returned unpaid, help the lender to know the volume of cheques returned, which are either deposited in your account or are issued by you. The volume and value of the cheques deposited or returned, will point towards the profile of the customer, his financial discipline and the strength of his business.

Isolated cases of cheque returns, will not impact your chances of getting a loan. However, repeated instances of cheque returns, could impact your chances of getting a loan, because the lender will tend to avoid a person who issues cheques, without ensuring that adequate balance in maintained in the bank account.

4. Account balance and nature of debits

The balance amount in your bank account, reflects your financial health, as well your saving habits. Regular debits (for example, in a Systematic Investment Plan) in mutual funds, will show your financial discipline and good saving habits.

There is a growing trend of using credit cards or internet banking, for making payments for online purchases. The quantum of credit card payments or debits for online payments, will help the prospective lender to understand your spending habits and pattern. This will help the lender, in determining your loan eligibility in relation to your income. Higher payments or debits in your bank account, are likely to reduce your overall loan eligibility.

UP RERA issues show-cause notices to Ansal API over alleged fraud

The UP RERA has said that it has issued show-cause notices to Ansal API over alleged fraud and diversion of funds

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA), on April 1, 2019, said that it has issued show-cause notices to Ansal Properties and Infrastructure, following a report submitted by a forensic auditor that had investigated 91 projects of the company over the last three months, for financial misappropriation. In October 2018, the Authority ordered forensic audit in registered projects with a view to investigate into the affairs, especially the accounts of Ansal API to find out the possible diversion of funds, and causes of inordinate delays, among others.

The Authority had appointed Currie and Brown (C&B) for conducting the forensic audit, it said in a statement. “The auditor had submitted its report, where it has stated that under Ansal API, the projects have found to be in breach of RERA compliances, managing separate accounts, half-yearly project account audit and a possible diversion of over Rs 600 crores from the projects to other purposes,” the statement said.

Consequently, its four projects in Lucknow were finalised for notices. These projects are EWS/LIG-PKT 2-Sec K-SGC, Bliss Delight, Block 1, 2, 3 & 4, GH-2, Sec, Pocket-2, Sector-J, Sushant Golf City and Pocket 3 Sector A, Sushant Golf City. “A large number of complaints were filed against these projects before us, in respect of non-delivery of units/plots, failure to refund money advanced by buyers, violation of various approvals, etc. Further, some serious allegations of mismanagement, diversion of funds, etc., were also made by the complainants. Hence, this was needed to protect the interests of the allottee(s) and to identify the ways and means to ensure the requisite fund flow for the completion of the projects,” UP RERA chairman, Rajive Kumar said.

The first of its kind action by RERA has been taken under Section 35 along with Section 7 (2), for violation of Section 4, 7 and 11 of the Real Estate (Regulation and Development) Act, 2016, the Authority said in a statement.

It would give the developer 30 days’ time to reply and deposit the amount in the concerned separate account, UP RERA member Balwinder Kumar said, adding “If the developer fails to respond, we might revoke the project registration with the Authority, impose penalties and other necessary restrictions.” Abrar Ahmed, UP RERA secretary, said the notices have been issued to Ansal API’s full-time directors Sushil Ansal, Pranav Ansal and managing director Anil Kumar.

Environmental activists formed a human chain at Marine Drive in south Mumbai, to protest against the tree-cutting in the city, for the ongoing metro rail construction

Wildlife conservation activists, students and representatives of those displaced because of various development projects, were among those who took part in a human chain, which extended for almost a kilometre on Marine Drive, on March 30, 2019, to protest against tree-felling for the various metro rail projects in Mumbai. They also demanded that political parties include environmental issues, in their manifestos for the Lok Sabha elections.

“This chain is the city’s way of declaring that its citizens will not vote for any party that does not address environmental concerns, in its manifesto for Lok Sabha elections,” said Amrita Bhattacharjee, a senior member of the Aarey Conservation Group (ACG). “We want to save the only green lungs of the city,” Bhattacharjee said, referring to Aarey Colony in north Mumbai. “Why only Mumbai city, environment-related issues in the entire country should be addressed with top priority,” Bhattacharjee said.

The ACG is agitating to protect the green cover in Aarey Colony, where around 2,700 trees are to be cut, to make way for a car-shed for the Mumbai Metro. Trees are being chopped down arbitrarily for the metro and activists are not allowed to be present when the trees are cut, Bhattacharjee said. Advocate Abhishek Bhatt, another activist, said, “Measures for protection of the ecology do not feature in any political agenda across the country.” Tribals and kolis (fishermen), the original inhabitants of Mumbai, were being driven out from their lands for so-called development, the activists said in a statement.

The panel would prepare a blueprint for project completion. The blueprint would consist financial details and a detailed roadmap towards arranging the said finances.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Thursday issued a standard operating procedure (SOP) to allow home buyers to remove a developer in case the project was delayed. The project would then be handed over to an expert panel for completion.

The authority, however, clarified that it could initiate such action only against non-litigated projects.

“It will help complete all delayed projects in the state. This is an unique move, probably the first in the country, under the Real Estate Regulatory Act, 2016, which will help the association of allottees (homebuyers) take control of the situation,’’ Vasant Prabhu, MahaRERA secretary, told TOI.

In case of revocation orders, the developer will lose rights to the project and his bank accounts will stay frozen, the order said, adding that the authority would then set up a panel of experts to prepare a project report within four months to decide on future course of action.

The panel would prepare a blueprint for project completion. The blueprint would consist financial details and a detailed roadmap towards arranging the said finances.

The SOP has been issued under section 37 of the RERA Act, 2016, with reference to sections 7 and 8. MahaRERA officials said the authority will only consider complaints received from an association of allottees and not from single home buyers for such action. “The complainants should not be less than 51% of the total allottees,” they said.

Alstom has bagged two contracts worth over 90 million Euros, to provide Communications-Based Train Control technology for five metro rail routes in Mumbai and Pune

Alstom has been awarded contracts to equip Mumbai Metro lines 2A, 2B and 7 and Pune Metro lines 1 and 2, with Urbalis 400, Alstom’s latest generation of Communications-Based Train Control (CBTC) technology. The combined value of the two contracts comes to over 90 million Euros. The Urbalis 400 system is presently in service in over 30 cities across the world, a statement from the company said.

The contract for Mumbai Metro, awarded by the Delhi Metro Rail Corporation Ltd (DMRC), is to provide the CBTC signalling system, as well as a state-of-the-art telecommunications system for the three elevated lines. The combined lengths of lines 2A, 2B and 7, make it one of the most extensive signalling projects in the country. The signalling scope includes design, manufacture, supply, installation, testing and commissioning of Urbalis 400 and includes supply and commissioning of on-board equipment for 63 trains. The telecommunications scope includes public address systems, passenger information display systems, fibre optic transmission systems, CCTV and access control systems. The contract for Pune Metro, awarded by the Maha Metro Rail Corporation Ltd (MMRCL), will see Alstom provide Urbalis 400 for Corridors 1 and 2, to control 31 trains on the 32-km-long stretch, allowing them to run at higher frequencies and speeds in total safety.

Speaking about the contract, Alain Spohr, Alstom’s managing director for India and south Asia said “We are proud to have been selected by our customers for these prestigious projects. Our cutting-edge technologies will help enhance the quality of life of the citizens of both, Mumbai and Pune and will contribute to the overall development of the cities. We are also proud to be a key partner, via these projects, in the growth of sustainable transportation in the region.”

A politician, who had contested the May 2018 Karnataka elections on a prominent political party’s ticket and involved in the real estate business, has been arrested for defaulting on tax of Rs 5.4 crores

A politician involved in the real estate business in Karnataka, has been arrested for defaulting on tax of Rs 5.4 crores, the Income Tax (I-T) Department said, on March 27, 2019. The politician, who was arrested recently, had contested the May 2018 assembly election on a prominent political party’s ticket, it said. Without revealing his identity, the department said in a release that it carried out searches and seizures at various places, during which he admitted to defaulting on taxes of Rs 5.4 crores.

The department said it made several attempts to recover the tax, by issuing notices and recovery proceedings. The politician was involved in various land transactions as reflected from the affidavit filed by him during elections. Yet, he did not use the transaction to clear the tax dues. Subsequently, various prosecution proceedings were initiated before the Economic Offences Court. However, he did not pay anything, the release said. A final notice was issued but he did not pay up, compelling the income tax officials to arrest him with the help of the Bengaluru police, it said.

The sub-registrar of societies in Vasai division has served notices to 19 cooperative housing societies, for allegedly not admitting non-Catholics as their members or allowing them to buy flats

The sub-registrar of societies in Vasai division, has served notices to 19 cooperative housing societies, after receiving a complaint that these housing societies were preventing non-Catholics from renting, purchasing flats or becoming members. These cooperative housing societies are a part of the Citizen Housing Complex at Naigaon, in Palghar district of Maharashtra, neighbouring Mumbai.

The sub-registrar has sought their replies and warned them of action under the Maharashtra Cooperative Housing Societies Act, 1960, if the complaint is found to be true. The 19 societies that received the notices, consist of a total of 57 wings, having 912 flats and were constructed almost 15 years ago.

“I came to know from my friends that since the last 15 years, when this housing complex came up, only members of the Catholic community get entry into the society. People belonging to other religions or communities, are not allowed to buy or rent flats in the complex,” Jitu Yadav, the complainant, said. Yadav is the president of the Real Estate Agents Welfare Association in the locality and had filed the complaint in the first week of February 2019.

When contacted, an official from the sub-registrar office, on March 26, 2019, confirmed receiving the complaint and said they were still waiting for a reply from the housing societies. “We would like to wait for a few more days. After that, we will initiate action under the relevant sections of the Maharashtra Cooperative Housing Societies Act, 1960,” the official said. When contacted, an office-bearer of one of the housing societies denied having such a rule and claimed people from all castes and communities are welcome in the complex.

According to experts dealing with cooperative society laws, individuals cannot be barred from entering into a housing society, on the basis of their caste, community, food preference or any other ground. Advocate Vinod Sampat, president of the Cooperative Societies Residents Welfare Association, said, “Nobody can be restricted from purchasing, renting or leasing a property by a society, on the basis of their caste, community or food preferences.”

Dhoni became the brand ambassador of the Amrapali Group in 2009 and continued to feature in its marketing and public relations activities till 2016.

Former Indian cricket team captain, MS Dhoni has moved the Supreme Court to get Rs 40 crore from the Amrapali group for for using his services for branding and marketing activities.

Dhoni became the brand ambassador of the Amrapali Group in 2009 and continued to feature in its marketing and public relations activities till 2016.

Last year, Dhoni had sued the real estate group for over Rs 150 crores.

The real estate group is currently in dock for duping 46,000 homebuyers.The Supreme Court on Thursday allowed arrest of Amrapali Group Chairman and Managing Director Anil Kumar Sharma as well as two other directors, Shiv Priya and Ajay Kumar, by the Delhi Police's Economic Offences Wing (EOW) in an alleged criminal case involving cheating.

In 2016, Amrapali had even announced gifting each member of the cricket team with an exquisitely designed independent villa at its Amrapali Dream Valley Project at Noida Extension worth Rs 9 crore after India’s victory in the World Cup in 2011. While Dhoni was presented with a villa worth Rs 1 crore, the other team members were gifted villas worth Rs 55 lakh each covering an area of 1690 sq ft. A person familiar with the situation said those villas were never built or gifted to the cricketers.

Lack of clear guidelines and apprehension of possible controversy around transition of unutilised input tax credit as on 31 March 2019, has been a key issue for the sector.

The GST Council at its 34th meeting on 19 March 2019 laid down the roadmap for implementation of the recommendations made in the previous meeting, towards rate rationalisation for real estate. These recommendations attempt to address the apprehensions of the sector on multiple issues including loss of unutilised input credit, exemptions and rate applicability.

Ongoing projects

A one-time option has been proposed for on-going projects not completed by 31 March 2019, to continue to pay tax at the existing GST rates (effective rate of 8 percent for affordable housing and 12 percent for others). Ongoing projects have been referred to as buildings where both construction and actual booking started before 1 April 2019 and which have not been completed by 31 March 2019. The option has to be exercised once within prescribed time frame. It is quite interesting that this option has been allowed at a project level instead of at the individual residential unit level. Complexity arises in interpreting the term 'ongoing project', particularly in cases where the construction is undertaken in a phase-wise manner consisting of cluster of buildings in a large township project. Absence of clear definition of 'ongoing project' would leave room for interpretation and may invite unwarranted disputes.

As far as choice of option is concerned, from the viewpoint of home buyers, the existing higher GST rate may not be acceptable. From the developers' standpoint, continuing with the existing rate structure may seem to be beneficial where input credits for the project would have been factored into the pricing of units, and also where benefits under anti-profiteering have already been passed on to customers. The process of selection of alternative would not only entail determination of benefit which could be derived by the developer, but may also have to be balanced with the part of such benefit which the home buyer would bargain to continue with the existing rate.

New Projects

New projects for which the construction would start after 1 April 2019 shall attract the revised lower GST rate (1 percent for affordable residential units and 5 percent for other residential units). As far as mixed use projects are concerned, the GST Council has clarified that residential projects having commercial space such as shops, offices etc., up to 15 percent of total carpet area, shall also be eligible for lower GST rate of 5 percent.

These rates are coupled with conditions that input tax credit shall not be available and 80 percent of procurements, except procurements of capital goods, Transferable Development Rights (TDR) / development rights under Joint Development Arrangement, long term lease (premiums), are made from GST-registered persons. This would require developers' to revisit budgeting and costing of their new projects to factor the potential tax cost towards non-creditable taxes. Also this requirement requires clarity in the enabling notification in terms of timing and manner of compliance.

Further, the compliance with the condition of 80 percent procurement from registered persons in case of ongoing projects opting to pay tax as per new rates, requires clarity as to whether it should be computed from 01 April 2019 onwards or even for the past period. This would also require re-visiting the existing procurements and selection of vendors given the fact that value chain in the sector comprises of unorganised suppliers. This would also entail applying internal controls as well as checks and balances by developers to avoid potential violation of this condition.

Considering the peculiar nature of the sector, to avert any possible complexity and controversy around determination of eligible credit, it has been proposed that the Credit Rules shall be amended to provide requisite procedure and guidelines for mixed use projects (residential and commercial use).