Maharashtra RERA Registration: Real Estate Regulatory Authority

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. Under this Act, Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March 2017, for regulation and promotion of real estate sector in the State of Maharashtra.

The key components of Real Estate (Regulation and Development) Act, 2016 are as follows:

1. Real Estate Regulatory Authority and Appellate Tribunal

Under this Act, appropriate government shall establish Real Estate Regulatory Authority for regulation and promotion of the real estate sector in the State / UTs. The Authority shall strive to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector while protecting the interest of allottees, promoters and real estate agents. The authority shall also establish an adjudicating mechanism for speedy dispute redressal regarding registered real estate projects. The key responsibilities of the Authority shall be as follows:

• Ensuring Disclosures of Real Estate Projects by Promoters
• Real Estate Projects Registration
• Real Estate Agents Registration
• Complaints Redressal
• Provide recommendations to appropriate Government on in matters relating to the development & promotion of real estate sector;

The appropriate Government shall also establish Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer may file an appeal before the Appellate Tribunal and the appeal shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within a period of sixty days.

2. Real Estate Projects Registration

All commercial and residential real estate projects will have to register except in projects where

• area of land proposed to be developed does not exceed five hundred square meters
• number of apartments proposed to be developed does not exceed eight inclusive of all phases
• promoter has received completion certificate for a real estate project prior to commencement of this Act
• for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project

No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area within Maharashtra, without registering the real estate project with the Maharashtra Real Estate Regulatory Authority(MahaRERA). Promoter of ongoing real estate projects, in which all buildings as per sanctioned plan have not received Completion Certificate, shall also be required to be registered for such phase of the project which consists of buildings not having occupation or completion certificate.

If any promoter fails to register as per Act, he shall be liable to a penalty which may extend up to ten per cent of the estimated cost of the real estate project. On continued violation, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or with both.
Apart from Registration, the promoters shall be required to provide quarterly updates on the status of the project to the authority.

3. Real Estate Agents Registration

All Real Estate Agents should register under this Act. No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, without obtaining registration under this section.

If any real estate agent fails to register, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated

4. Filing of complaints

Any aggrieved person may file a complaint with MahaRERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under. The Authority shall establish an adjudicating mechanism for speedy redressal of such complaints.

Any person aggrieved by any direction or decision or order made by MahaRERA or by an adjudicating officer may file an appeal before the Appellate Tribunal.

Any person aggrieved by any decision or order of the Appellate Tribunal, may file an appeal to the High Court.

5. Financial Discipline

The Act strives to ensure greater financial discipline in the real estate sector. Some of its provisions are as follows:

• A promoter shall not accept more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale
• Seventy per cent of the amounts realized for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose
• Withdrawal from such accounts shall be in proportion to the percentage of completion of the project, which shall be certified by an engineer, an architect and a chartered accountant in practice.
• Promoter to compensate buyer for any false or incorrect statement with full refund of property cost with interest
• Project Accounts to be Audited / FY. Copy to be submitted to MahaRERA
• Provision for MahaRERA to freeze project bank account upon non-compliance
• Provision for stronger financial penalties for MahaRERA non-compliances
  

6. Transparency

The Act shall drive great transparency in the real estate sector as follows:

• Details of all the Registered Projects shall be available online for citizens including:
  1. sanctioned plans, layout plans, along with specifications, approved by the competent authority
  2. Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be consumed in the whole project, as proposed by the promoter
  3. Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).
  4. the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
  5. quarterly update of the list of number and types of apartments or plots, as the case may be, booked
  6. quarterly update of the list of number of covered parking, garages booked;
  7. quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement certificate;
  8. quarterly update of the status of the project; and
  9. such other information and documents as may be specified by the regulations made by MahaRERA.
• The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of MahaRERA, wherein all details of the registered project have been entered and include the registration number obtained from the Authority
  

7. Citizen Centricity

• Citizens shall be able to view, on MahaRERA website, all disclosures pertaining to registered projects. This shall enable data driven informed decision making.
• Promoter cannot make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities etc. without the previous consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building.
• If the promoter fails to complete or is unable to give possession of an apartment, plot or building, in accordance with the terms of the agreement for sale, he shall be liable to pay interest for every month of delay. Further, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him with interest
• Promoter to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which sixty per cent of the total number of Purchasers in such a building or a wing, have booked their apartment.
• Promoter shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or sixty per cent of the total number of Purchasers in such a building or a wing, have paid the full consideration to the promoter, whichever is earlier.

Real Estate (Regulation and Development) Act 2016 is a step towards reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.

Infra Debt Fund (IDF) - Mutual Fund & NBFC

The Finance Ministry is all set to take the draft tripartite agreement for the infrastructure debt funding mechanism to the Cabinet. The Cabinet approval will pave the way for operationalising the mechanism.

Finance Minister said, “The infrastructure debt funds note will go before the Cabinet shortly and we will announce that after it is approved.” The proposal for such a fund was announced in the 2011-12 Budget. Such a fund aims to attract big-ticket investments for large infrastructure projects.

Earlier, a senior Finance Ministry official said the model agreement is the key to operationalising the funding mechanism. This will provide arrangement between the borrowers, the lenders and the proposed Infra Debt Fund (IDF). Once this agreement is in place, the IDF will take over a part or the whole of credit given. This will release funds for the banks and the financial institutions so that they can lend to others.

According to Government norms, the IDF can be set up either as a trust or as a company. In the former case, it would normally be a mutual fund (MF) and in the latter, an NBFC. In the form of a Non-Banking Finance Company, the IDF would raise resources through issue of either rupee or dollar denominated bonds of minimum five-year maturity.

The investors would primarily be domestic and off-shore institutional investors, especially insurance and pension funds that have long-term horizon.

A mutual fund IDF would be regulated by SEBI, while an NBFC IDF would be regulated by the RBI. The market regulator, SEBI, has already issued detailed guidelines for creating a mutual fund IDF.

Such a mechanism is intended to assist infrastructure projects get sustainable and cost-effective, long-term financing. Though banks have traditionally been supplying credit, they are unable to provide long-term funding given their asset-liability mismatch. Moreover, banks are also near their exposure limits for the infrastructure sector.

It is expected that IDFs through innovative means of credit enhancement will provide long-term low-cost debt for infrastructure projects by tapping insurance and pension funds that have hitherto played a comparatively limited role in infrastructure financing.

IDFs are also likely to help in strengthening the rupee, as the funds will attract foreign investments pushing up dollar inflows. The rupee continued to gain, appreciating to Rs 52.40 against the dollar today. The Finance Ministry expects the rupee to go up 50 level by year end.

Source: The Hindu Business Line, Oct 01, 2012

FDI in Real Estate and Property Construction Sector

FDI in Real Estate and Property Construction

FDI in Townships, housing, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure) would be allowed upto 100% through automatic approval route.

Investment will be subject to the following conditions:

(1) Minimum area to be developed under each project would be as under:

(i) In case of development of serviced housing plots, a minimum land area of 10 hectares

(ii) In case of construction-development projects, a minimum built-up area of 50,000 sq.mts.

(iii) In case of a combination project, any one of the above two conditions would suffice.

(2) Minimum capitalization of US$10 million for wholly owned subsidiaries and US$ 5 million for joint ventures with Indian partners. The funds would have to be brought in within six months of commencement of business of the Company.

(3) Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. Original investment means the entire amount brought in as FDI. The lock-in period of three years will be applied from the date of receipt of each installment/tranche of FDI or from the date of completion of minimum capitalization, whichever is later. However, the investor may be permitted to exit earlier with prior approval of the Government through the FIPB.

(4) At least 50% of each such project must be developed within a period of five years from the date of obtaining all statutory clearances. The investor/investee company would not be permitted to sell undeveloped plots. For the purpose of these guidelines, undeveloped plots will mean where roads, water supply, street lighting, drainage, sewerage, and other conveniences, as applicable under prescribed regulations, have not been made available. It will be necessary that the investor provides this infrastructure and obtains the completion certificate from the concerned local body/service agency before he would be allowed to dispose of serviced housing plots.

(5) The project shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned.

(6) The investor/investee company shall be responsible for obtaining all necessary approvals, including those of the building/layout plans, developing internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed under applicable rules/bye-laws/regulations of the State Government/ Municipal/Local Body concerned.

(7) The State Government/ Municipal/ Local Body concerned, which approves the building / development plans, would monitor compliance of the above conditions by the developer.

The conditions at (1) to (4) above would not apply to Hotels and Tourism, Hospitals, Special Economic Zones (SEZs), Education Sector, Old age Homes and investment by NRIs. Further, FDI is not allowed in Real Estate Business.

 

Application for ECB - External Commercial Borrowings

Application for External Commercial Borrowings (ECB)

under Approval Route

Instructions

The complete application should be submitted by the applicant through the designated authorised dealer to the Chief General Manager-In-Charge, Foreign Exchange Department, Central Office, ECB Division, Reserve Bank of India, Mumbai 400 001.

Documentation:

Following documents, (as relevant) certified by authorised dealer, should be forwarded with the application:

(i) A copy of offer letter from the overseas lender/supplier furnishing complete details of the terms and conditions of proposed ECB.

(ii) A copy of the import contract, proforma/commercial invoice/bill of lading.

_______________________________________________________________

PART-A- GENERAL INFORMATION ABOUT THE BORROWER

1. Name of the applicant

(BLOCK LETTERS)

Address

__________________________________

2. Status of the applicant

i) Private Sector

ii) Public Sector

______________________________________

PART-B-INFORMATION ABOUT THE PROPOSED ECB

_____________________________________

Currency Amount US$ equivalent

1. Details of the ECB

(a) Purpose of the ECB

(b) Nature of ECB [Please put (x) in the appropriate box]

(i)	Suppliers' Credit
(ii)	Buyers' Credit
(iii)	Syndicated Loan
(iv)	Export Credit
(v)	Loan from foreign collaborator/equity holder (with details of amount, percentage equity holding in the paid-up equity capital of the borrower company)
(vi)	Floating Rate Notes
(vii)	Fixed Rate Bonds
(viii)	Line of Credit
(ix)	Commercial Bank Loan
(x)	Others (please specify)

(c) Terms and conditions of the ECB

(i) Rate of interest :

(ii) Up-front fee :

(iii) Management fee :

(iv) Other charges, if any (Please specify) :

(v) All-in-cost :

(vi) Commitment fee :

(vii) Rate of penal interest :

(viii) Period of ECB :

(ix) Details of call/put option, if any. :

(x) Grace / moratorium period :

(xi) Repayment terms (half yearly/annually/bullet) :

(xii) Average maturity :

_________________________________________________________________

2. Details of the lender

Name and address of the lender/supplier

___________________________________________

3. Nature of security to be provided, if any.

________________________________________

PART C – INFORMATION ABOUT DRAW DOWN AND REPAYMENTS

Proposed Schedule
Draw-down			Repayment of Principal			Interest Payment
Month	Year	Amount	Month	Year	Amount	Month	Year	Amount

PART D – ADDITIONAL INFORMATION

1. Information about the project

i) Name & location of the project :

ii) Total cost of the project : Rs. USD

iii) Total ECB as a % of project cost :

iv) Nature of the project :

v) Whether Appraised by

financial institution/bank :

vi) Infrastructure Sector :

a) Power

b) Telecommunication

c) Railways

d) Roads including bridges

e) Ports

f) Industrial parks

g) Urban infrastructure - Water supply, Sanitation and sewerage.

vii) Whether requires clearance from any :

statutory authority ? If yes, furnish

the name of authority, clearance no.

and date.

2. ECB already availed -(not applicable for the first time borrower)
Year	Registration No.	Currency	Loan Amount	Amount disbursed	Amount outstanding*
2003-04
2002-03
2001-02

* net of repayments, if any, on the date of application.

PART E – CERTIFICATIONS

1. By the applicant

We hereby certify that -

(i) the particulars given above are true and correct to the best of our knowledge and belief.

(ii) the ECB to be raised will be utilised for permitted purposes

______________________

(Signature of Authorised Official of the applicant)

Place_______________

Name:_________________________________

Date________________ Stamp

Designation_____________________________

Phone No. ______________________________

Fax ________________________________

E-mail _________________________________

___________________________________________________

2. By the authorised dealer –

We hereby certify that –

(i) the applicant is our customer.

(ii) we have scrutinised the application and the original letter of offer from the lender/supplier and documents relating to proposed borrowing and found the same to be in order.

________________________________

(Signature of Authorised Official)

Place ________________ Name _________________________________

Date_________________ Stamp Name of the Bank/branch__________________

A.D.Code______________________________

_____________________________________________________________________

 

Infrastructure Debt Fund (IDF), India

Infrastructure Debt Fund (IDF), India

 

The government has finalized the contours of a $10-billion (over Rs 50,000 crore) infrastructure debt fund (IDF) with 50% participation from a foreign bank and a multilateral agency, while the rest of the corpus will be contributed by state-owned financial institutions.

 

Government officials and bankers said India Infrastructure Finance Company (IIFCL), Life Insurance Corporation and IDBI Bank along with Asian Development Bank and HSBC are joining hands to set up a non-banking finance company (NBFC) that will manage the fund.

 

The initial corpus of the fund will be $1 billion (over Rs 5,000 crore) with 50% coming from the three state-run agencies and HSBC and ADB contributing the rest. A request to get ADB to pitch in has been sent to the finance ministry. Sources indicated that the day-to-day operations of NBFC will be with HSBC as there was a view that private players were better equipped to handle the fund.

 

While companies have the option to set up a fund in the form of a mutual fund, the government has opted for the NBFC route. IDBI Bank was keen to go for the MF option as IIFCL has the mandate to provide funds for projects set up under the public-private partnership (PPP) route.

 

A formal announcement is expected to be made in the Budget as the government is keen to announce a series of measures to spur infrastructure development - seen to be the biggest roadblock in recent times. Although the IDF structure was announced in the last Budget, only smaller players have come forward to set up the fund.

 

Bankers as well as companies in the infrastructure space are, however, critical of the fact that more than funds it is the absence of projects and supply of inputs that is holding up development.

 

In an interview, IDFC managing director told that the infrastructure finance firm had stopped lending to thermal power projects due to uncertainty in the sector.

 

Several coal-based power projects have been held up the failure of the government to ensure adequate supply of fuel. There are others that have suffered delays on account of land acquisition or environmental clearances. These factors have also prompted the government, which is battling a series of corruption scandals, to go slow on award of new contracts. Contracts have been scarce in other infrastructure sectors like ports. Roads was the only shining light in terms of contracts awarded.

 

TNN | Jan 3, 2012

 

Ozg Infrastructure Projects

http://infrastructure.ozg.in

 

Email: infrastructure.project@ozg.co.in

Textile Parks with classy infrastructure in 9 States of India

The Indian government on Thursday has sanctioned Rs.2,100 crore for setting up 21 new integrated textiles parks under the Scheme for Integrated Textiles Parks with world-class infrastructure in nine States, the Ministry of Textiles said.

The new textiles parks, to be set up under public-private-partnership, will attract an overall industry investment of over Rs.9,000 crore and provide employment to four lakh workers, according to an official statement.

The scheme for the parks would be implemented within 36 months. The government would finance common infrastructure with a subsidy of up to Rs.40 crore per textiles park.

The new textiles parks were approved at a meeting of the Project Approval Committee, headed by Commerce, Industry and Textile Minister A. Sharma in New Delhi. The committee examined 55 proposals for new textiles parks in the country.

"The sanction of new textiles parks would catalyze significant additional investments with industry utilizing the benefits under the scheme for integrated textiles parks and Technology Up-gradation Funds Scheme (TUFS)," the statement says.

Six of the parks would come up in Maharashtra, four in Rajasthan, two each in Tamil Nadu and Andhra Pradesh, one each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh, Karnataka, Jammu & Kashmir and West Bengal. The product mix in these parks would include apparels, hosiery, silk, processing, technical textiles, carpet and power loom. The government would invite bids for the lead investors heading the Special Purpose Vehicles for implementing the projects, the statement said.

The government has increased the allocation under TUFS to Rs.15,404 crore from Rs.8,000 crore under the 11th Five Year Plan and and under the SITP an allocation of Rs.400 crore has been made for sanction of new Textiles Parks in April 2011.