Dark Age: 60 crore hit as power snaps in 19 states Life comes to standstill in half of India following northern and north-eastern grid failure

NEW DELHI The power crisis that hit northern India on Monday turned into a larger blackout a daylatertoaffectasmanyas19 states not just in the north but also in the east and northeast, paralysing essential services such as rail and metro operations,besidescausingmassive trafficsnarls. 

    "Gridincidentoccurredat1 pm, affecting the northern, eastern and northeastern grids. The system is under restoration," said the official website of the eastern grid, among such systems managed by the state-run Power System OperationCorpLtd. 
    The states affected on Tuesday were Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, West Bengal, Odisha, Jharkhand, Sikkim, Assam, Meghalaya, Tripura, Nagaland, Manipur, Mizoram and Arunachal Pradesh. 
    These states account for half of India's 1.2 billion population. 
    Power Minister Sushil Kumar Shinde, who had constituted a committee to probe the failure on Monday, attributed the collapse on the second straight day to overdrawing of power by some states and said efforts were on to fetch electricityfromotherregions. 
    "Alternative arrangements have been made. I have put all my men at work. We are getting power from western grid. Wewilltrytorestoreservicesof the Metro and the railways first,"Shindetoldreporters. 
    There was, however, little respite for some 300,000 rail passengers, who were stuck in over 300 trains across eight states, after the power failure crippled such operations across six railway zones in the country. 
    The Delhi Metro suspended services on all the six lines as power tripped for the second straight day. It normally operates over 2,700 trips a day, coveringatotalsome70,000km,to carry around 1.8 million passengersonaweekday. 
    In the national capital, and inmostothercities,trafficwas also severely affected as traffic signals tripped and caused major snarls at intersections. Some 4,000 traffic police personnel in Delhi were immediately deployed to bring some semblanceoforder. 
    Flights operations remainednormal. 
    Speaking to reporters in the evening, chairman and managing director of Power Grid Corp of India R N. Nayak, said close to 50 per cent of power had been restored in the northeastern region and 20 per cent inthenorth. 
    Nayak also said excess powerdrawnbyonestatehadacascading effect on the three grids. He, however, did not name which state had overdrawn power. The officials said every effort was being madetorestoresuppliesfully. 
    AGENCIES

300 TRAINS AFFECTED 
At least 300 trains came to a grinding halt at various places in north and north-eastern regions due to the power failure, movement on the busy Delhi-Howrah route almost paralysed. 
    The affected trains included scores of long distance trains, Rajdhani and Shatabdi expresses, as well as suburban trains in Delhi and Kolkata, causing inconvenience to lakhs of passengers.

SIGNALS GO BLANK 
Traffic was thrown out of gear in the capital this afternoon when signals went blank following power failure across north India. 
    Huge traffic jams were reported from various parts of the capital, including Connaught Place, Ashoka Road and India Gate. "The city is without electricity in most of the areas. Traffic signals are not functioning due to power failure, said a top traffic officer.

HOLIDAY IN BENGAL 
Following the crisis, West Bengal CM Mamata Banerjee ordered all government offices to declare a holiday for the day and urged the private sector to the same to enable the people to go home and appealed to people to maintain calm.

300 coal miners trapped for hours 
KOLKATA Hundreds of coal miners were stranded on Tuesday in various coal mines across Assam and West Bengal after the blackout paralyzed elevators in the underground pits. 
    While 100 workers got stuck several feet below ground level in Assam, nearly 200 workers from government-owned Eastern Coalfields Limited were waiting to be rescued from mines in Bengal's Burdwan district . 
    Nildari Roy, a senior official at Eastern Coalfields Limited said they were waiting for the restoration of power. "There is no threat to the lives of the miners. There is no reason to panic," Roy said. 
    JAYATRI NAG

Commuters at a Metro station in Delhi on Tuesday after services were disrupted

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DLF’s Mumbai Dreams Grounded Debt-laden realtor to sell 17.5-acre land to Lodha JV for . 2.8kcr

DLF, the country's largest developer, will sell its 17.5-acre land in Mumbai's Lower Parel to Lodha Group and a private equity player for about . 2,800 crore, ending its long-drawn bid to break ground in India's financial capital. 

The deal will help the Delhi-based builder pare part of its burgeoning debt that had reached . 22,725 crore by March 31, a top company official said. "The legal documentation will be completed in the next one week," he said. 
The buyers have paid an advance, and the final terms of the deal are currently being worked out, the person said. 
DLF will get the entire . 2,700-2,800 crore in one go within two months. 
The cash-rich Lodha Group, which is building the world's tallest residential tower in Mumbai, will bring in . 1,000 crore, while the balance will be paid by the PE fund, the person said without naming the private equity fund. Lodha Group MD Abhisheck Lodha confirmed he is part of the transaction, but refused to share details of the deal. "We aren't in a position to give any comments on the transaction," he said through a mobile text message. A spokesperson for DLF said the company does not comment on speculation. 
DLF bought the land for . 702 crore in an auction in 2005 from state-owned National Textile Corporation. It had changed its developmental plans for the plot thrice—from building a retail mall to commercial office buildings to finally a residential project—before it decided to sell it a year ago. 
DLF and many other builders piled up huge debt when demand for residential and commercial property fell during the 2008-09 slump after years of boom when the sector grew rapidly. Realtor Selling Non-Core Assets to Pare Debt 
The company is in the process of selling several non-core assets including land parcels, SEZs and some office buildings, to reduce its debt. 
DLF had been trying to sell the Lower Parel land for about a year, but was finding it difficult to get the right value. 
Potential buyers renewed interest in the asset after new development control rules in Mumbai were notified in January, which cleared the air about how much space can be built on the land parcel and the amount of extra FSI that can be bought. Lodha and DLF have been in talks for three months. Other builders such as Vallabh Sheth, Piramal, Runwal and the Wadhwa Group, and sovereign funds like GIC and Macquarie too had shown interest in the land. Lodha—which has several landmark projects in the Lower Parel area including the 117-storey World One residential tower—plans to build a high-end residential project at the new location, an official said. 
Besides luxury homes, the company may also construct houses for the mid-income group because of a glut of top-end apartments in central Mumbai, the person said. A recent ET report showed that close to 60% of Mumbai's luxury apartments, under-construction and fully-built, remain unsold because of rising prices and oversupply. There are currently 3,300 luxury apartments being developed in Mumbai. Lodha-DLF deal will be the largest land deal where the seller gets the entire payment in one go. BPTP's Rs 5,006-crore buy of a land parcel on the Noida Expressway, which is the largest deal so far in the country, involved staggered payments over several months and years. 
DLF is also working on two other-high value transactions, including the sale of the luxury hotel chain Aman Resorts (barring the Delhi property) and its wind power business, to raise over Rs 3,000 crore. 
In an analyst call after its fourth quarter results, the company's management said it has increased the overall target for asset divestments by an additional Rs 5,000 crore in the medium term. 
DLF's net profits dipped 26.8% in 2011-12. In 2011-12, it managed to raise only Rs 1,774 crore through asset sales against a target of Rs 5,000-6,000 crore and reduced its debt by Rs 33 crore in the fourth quarter of fiscal year 2012. 
The company raised Rs 1,200 crore during the October-December quarter by selling an IT park in Noida to IDFC and an IT SEZ in Pune to Blackstone. It also sold two land parcels in Gurgaon in the same quarter. DLF's stock closed at Rs 194.60, down 1.52%, on Friday.

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Navi Mum hot spot for realty investors

 Navi Mumbai seems to have become the favourite property destination for investors to park their money. As per Census 2011, a sizeable proportion of houses are lying vacant in peripheral towns. But no cluster beats the Navi Mumbai-Panvel-Raigad Census Town (NMPRCT) zone in this respect. It is in this zone of the state, which includes Kharghar, Kamothe and Kalamboli, that the maximum number of apartments is lying unoccupied (see graphic). 

    In the census, two to three houses in 10 were found vacant in these towns, prompting realty experts to assume that they were flourishing investment markets. In surveying the occupancy pattern, the census department took the help of civic bodies. 
    Of 75,094 structures (census houses) surveyed in the NMP-RCT zone, 20,495 (about 27%) were found unoccupied, followed by Panvel (about 23%), Badlapur (about 21%) and Vasai-Virar (about 23%). The reasons for the vacancy are not mentioned. Property experts say most of the vacant homes are owned by investors, who anticipate rate appreciations; also, genuine buyers defer purchase, hoping for realistic realty rates. 
    Pankaj Kapoor, the managing director of the realty rating and research firm Liases Foras, said, "A genuine buyer can never afford to leave a house locked. Over the last decade, a sizeable number of flats was bought by those who did not intend to stay in them, while the actual end user was left out. Take a trip in areas like Kharghar and Kamothe after evening hours and you will get the correct picture." 
    A noted developer from Navi Mumbai confirmed the presence of investors in the market. "Going by a conservative estimate, 20-25% of the realty market is ruled by investors. Most developers earmark a specific number of units for regular investors, who get properties at discounted rates. The developer, in turn, is assured of adequate finances during crucial phases. Genuine buyers are not always affected by investor presence. Also, curbs cannot make investors vanish from the realty scene." 
    Pranay Vakil, chairman, Knight Frank India, said, "Investors, mostly, seek bulk properties that can be sourced within Rs 50 lakh. Property costs in Navi Mumbai are less than Mumbai, thus making buying there a lucrative bet. 
    "Investors enter deals during the pre-construction period and make an exit when the properties start reaping reasonable profits. They later reinvest in other developing areas. They are interested in owning property but not occupying them." 
    But developer Paras Gundecha, who is also the president of the Maharashtra Chamber of Housing Industry (MCHI), said low occupancy did not imply flourishing investor presence. "There is a vast difference between unoccupied and unsold flats," he said, expressing surprise at the figures. "Houses can remain unoccupied because of people staying in Mumbai buying homes in the extended suburbs." 
    Also, some families might be investing in flats for youngsters or future occupancy or events like marriage. Some flats could also be owned by NRIs and those who have temporarily migrated to other cities for employment. 
    Developers Ashok Mohnani, who has projects in the Vasai-Virar belt, and Vilas Bhamre, who has projects in Panvel, said these areas had better occupancy and the market was being driven by actual buyers. Nevertheless, Bhamre said, "Kamothe and Kalamboli are developing. So, there is the possibility that some structures might have been unoccupied during the survey."

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State to fine bldrs 31cr for duping Mhada

Mumbai: The going is set to get tough for 33 builders who have not yet surrendered surplus built-up area worth over Rs 200 crore to Maharashtra Housing and Area Development Authority (Mhada). The state housing department has proposed to slap fines collectively worth Rs 31.47 crore on thesebuilders. 

    The fines will be over and abovethelandthatthebuilders have to surrender to Mhada, a senior officialsaid. 
    The 33 builders owe Mhada 1.22 lakh sq ft of land, which is roughly equivalent to 407 small-sized(300sq ft)flats. 
    Under the development control regulations, builders redeveloping dilapidated cessed properties in the island city have to surrender a portion of the built-up space to Mhada. The builder receives a floor-space-index of 3 for such redevelopment. The available built-up spaceisfirstusedto rehabilitate tenants. The builder gets to retain proportionate area asincentivefor hissalecomponent. The surplus built-up area has to be divided in the ratio of 2:1 between Mhada and the builder. The 33 builders breached the rules and some even sold off Mhada's share of surplus area.In somecases,the surplus area has not been surrenderedfor over twodecades. 
    Mhada had planned to use thesurplusbuilt-up area for its various redevelopment and rehabilitation projects. 
    The redevelopment projects involving these lands are situatedin areaslikeMazgaon, Tardeo, Prabhadevi and Parsi Colony, among others, where real estate rates vary from Rs 1.5 lakh per sq m to Rs 2.5 lakh per sq m. 
    Last year, the economic offences wing registered cases against these builders on Mhada's complaint. The proposal hasbeen putup for approvalbefore minister of state(housing) Sachin Ahir,following whichit will be submitted to CM PrithvirajChavan. 
HOMING IN ON THE DEFAULTERS 
Land Ahoy Of the 1.22 lakh sq ft land due to Mhada from 33 projects, about 76,828 sq ft (10 projects) is in the Mazgaon-Byculla belt. Nineteen projects are in the Dadar-Mahim-Parel-Sewri belt. Mhada's share in these works out to 24,363 sq ft. The remaining four projects are in Tardeo and parts of south Mumbai, where Mhada's share is 21,131 sq ft 
Money Matters At current market rates, Mhada's share is valued at over 200 crore. About 407 small-sized flats can be built on the area 
Rise From The Ashes The file on fine proposal was charred in the Mantralaya fire. It was reconstructed and put up for approval 
Fine Move The housing department has used state norms on fines for overstay in government tenements to charge builders

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UNREAL ESTATE Unsold units in Mumbai touch 122 million sq ft

Mumbai: With fewer buyers showing interest in purchasing property, the number of unsold units in the Mumbai metropolitan region has skyrocketed. 

    Unsold units touched 121.97 million sq ft by June 2012 from 110 million sq ft in December 2011, according to Liases Foras real estate rating and research firm. Of 121 million sq ft, the highest number of unsold units, about 25%, are located in the western suburbs from Bandra to Borivli and also in the areas beyond Thane in the central suburbs. 
    Unsold stock comprises roughly 10% of ready flats, while the balance comprises under-construction and newly-launched projects. 
    "Going by the existing absorption rate (sales), it will take approximately 37 months to clear the current stock of unsold units," said Pankaj Kapoor, founder of Liases Foras. 
    As per the company's data, sales have climbed from eight million sq ft between April and June 2011 to almost 9.79 million sq ft between April and June 2012. The value of homes sold in the Mumbai metropolitan region correspondingly increased from an average Rs 10,559 per sq ft to Rs 11,154 per sq ft. 
    "Although sales in the metropolitan region have improved in terms of the number of units, figures suggest that cheaper properties available in the extended suburbs of the city were major contributors of this improvement," Kapoor said. 
    Expressing a similar view, research firm Prabhudas Lilladher said that while a slight increase of about 6% was noticed in sales registrations in the past few months in Mumbai, one could hardly term this "arrest" in sales as a recovery in the real estate sector. "The incremental demand could be on account of first-time home buyers taking the plunge in the absence of price correction and from NRI-led demand due to significant weakening of the rupee," analysts said. 
    "With interest rates remaining firm, the woes of the real estate industry are likely to continue. With developers sitting on highly leveraged balance sheets, a price cut becomes a strong possibility. Challenges to the sale scenario in the city remain high and more needs to happen to correct the stressed affordability equation amid high property prices," analysts added.

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BMC to charge levy on leased plot transfer

Mumbai: In a move which will impact redevelopment of over 4,100 properties in Mumbai, the BMC on Wednesday gained the right to levy a premium on transfer of its leasehold plots. 

    The state legislative assembly approved a bill to modify the Mumbai Municipal Corporation (MMC) Act on Wednesday. The bill also made it mandatory for a lessee to seek prior permission of the civic chief before entering into any such transfer. A clause permitting the BMC chief to levy penalty for plots where transfer of rights has taken place since June 22, 1993, was also provided for. 
    The civic body, which is among the biggest landlords in the city, has allotted 4,176 plots on lease. Most of these are situated in posh areas. While a number of leases were entered into for 99 and 999 years (some have even been awarded for in perpetuity), it was found that third-party rights had been created on a number of such plots in violation of lease conditions. 
    After the BMC's general body resolved to charge transfer premium, withprospective effect since June 22,1993, some leasehold plot holders approached the court. In its ruling, the court had said the civic body could not impose any such transfer in the absence of legislation. The bill approved on Wednesday amended norms to empower the BMC in this regard. While the bill was approved unanimously, BJP legislator Prakash Mehta demanded "extension of the scope" of the bill to include all civic properties, which he claimed were collectively worth Rs 60,000 crore. Mehta and NCP's Nawab Malik asked if the bill did not amount to "regularization of illegal transfer deeds". Malik also enquired about the fate of transfer deeds on such plots entered into before 1993. 
    BJP's Yogesh Sagar demanded guidelines for collection of the premium. Minister of state Bhaskar Jadhav said such norms would be in the offing.

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Unregistered society? You can still buy a flat

While the houses in unregistered societies are usually cheaper than those in registered ones and you have the option of starting your own society, it is important to conduct due diligence before buying one.

    Amint condition flat in Mumbai at a 10% discount, and bank loans for the taking… So what's stopping Gopal Tiwari from grabbing this deal? "The developer has not yet handed over the project to the tenants despite its completion five years ago," says the 35-year-old marketing professional. 

    However, Tiwari need not avoid this deal, and should first find out why the builder has not transferred the possession legally, say experts. There could be various reasons for this, including the probability that there is no registered housing society. If it does exist, one can typically source the information about a property from the housing society. Says Sandeep Sadh, CEO ofMumbaipropertyexchange.com, a Mumbai-based realty portal: "The developer may not have received the occupancy certificate (OC) from the civic authorities. He has to take permission for 40-45 things from 30 departments and this takes time." 
    Another explanation could be that the developer hasn't yet used the authorised floor space index or does not want to hand over the possession to buyers till he sells his entire inventory. Of course, it is also possible that the developer is not getting the OC because he is indulging in an illegal activity. This is why due diligence on the part of the buyers is crucial. 
    Assuming all is above board, Tiwari could buy the flat and kickstart the process of registering the society. If more than 60% of the flats are sold in a project, the residents can form the society on their own. 
How to get a society registered 
The residents will first need to conduct a general body meeting of all the flat owners to elect the chief promoter. Typically, a 14-day notice is given to call such a meeting. As the developer has the first right to act as the chief promoter for registering the society (under the flat owners type of cooperative society), if he hasn't done so, the registrar will first issue a notice to him for non-cooperation. If he does not respond, an ex-parte decision will be taken for registering the society. This additional step makes the process longer. 
    After electing the chief promoter, the next step is to propose a name for the society. The proposal should be signed by at least 10 promoters who have attended the meeting. If the number is less, the flat owners will have to take special permission from the state government. They will also have to form an ad hoc managing committee, electing members to function as chairman, vicechairman, secretary and treasurer. The registrar will allot the name and also grant permission to the society to open a bank account. When this is done, the chief promoter has to collect the share capital and entrance fee from the promoters and deposit these in the account. Where the developer takes on the role of the chief promoter, this amount is collected when the property is sold. The money cannot be withdrawn from the bank till the society is registered, except with the prior written permission of the registrar. 
    Lastly, the chief promoter should submit the registration proposal along with the supporting documents (see box) to the registering authority within three months of the Letter of Reservation (for reservation of the name) being issued in the name of the proposed society. Once the society is registered, it becomes a legal entity and its running is in the hands of the elected managing committee.
The pitfalls 
Before you rush headlong to invest in an unregistered society, remember that the associated risks are not always couched in legalese. Advocate Vinod Sampat, a Mumbai-based property lawyer, points out, "A buyer can find out if the house is mortgaged or has outstanding dues by contacting the housing society. However, in its absence, one has to rely entirely on the word of the developer," he explains. Ravi Goenka, high court advocate at Goenka Law Associates, takes another angle. According to him, in a registered housing society, the members are in control of all the expenses of their property. "When the property has not been handed over, the developer controls the maintenance expenses and members have no clue about the taxes payable. Often, the developer doesn't spend the society money on promised welfare activities, but there is little that the members can do," he says. 
    The bottom line is that if you are planning to buy property in an unregistered society, you will have to take more precautions than you would for a registered one. Sadh suggests you opt for a housing loan in such a case. "The bank will conduct due diligence and the risks involved will be minimised," he explains. 
Additional charges 
Make sure that the fat discount that lured you to the property is not balanced out by any additional charges that you incur. Says Ramesh Prabhu, a real estate expert and chairman of Maharashtra Societies Welfare Association: "Take the no-objection certificate, which buyers need if they want to take a home loan. The maximum that a housing society is known to charge for it is around 25,000. However, if the society is yet to be registered, the investor will have to get the certificate from the developer, who can charge 4-6% of the value of the transaction." Sometimes, the fee charged by the developer runs into a couple of lakh rupees. 
    Also, in case the developer has not transferred the property due to the absence of the OC, you will have to pay excess municipal charges (water and property taxes) to the civic authorities. The final problem is the fact that there will be no monthly break-up of maintenance charges as offered in housing societies. "In the case of unregistered societies, the members have to make a lump-sum payment in advance to the developer," says Prabhu. 
    So should you opt for such a property? If you conduct due diligence and are willing to take a risk, a discounted flat in an unregistered society can be a good buy. 
Documents required to 
    register a society 

• Application for registering the society. 

• Information about the proposed society and the promoter. 

• Statement of accounts. 

• Bank balance certificate. 

• RBI/treasury challan for payment of registration fee of `500. 

• Title clearance certificate from an advocate. 

• A copy of the approved building plan. 

• Letter of authority granting permission to commence construction work/completion certificate. 

• An affidavit from at least 10 promoters stating that they reside within the proposed society. 

• An affidavit from the chief promoter. 

• A certified copy of the agreement registered between the builder, promoters and buyers. 

• Names of 60% of the flat owners of the total number of flats constructed or proposed to be built.

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Don’t be fooled by the sample flat

These flats are part of the marketing strategy of builders and have very little resemblance to what you will eventually get     The walls were beautifully done up, the fittings were exquisite and the rooms were very spacious. Vijayalaxmi Nayak and her family were so pleased with the look and feel of the sample flat that they immediately booked an apartment in the project by a reputed developer in Bangalore. The excitement died down when the Nayaks got possession of the house three years later. It was nowhere close to what they had been shown. "In the sample flat, the rooms looked big and perfectly done up, but actually the size was much smaller, and the ceiling was not of the same height as showcased," says Nayak.      There's very little that the Nayaks can do now because the sample flat has long been demolished and they have no photographs or documentary evidence of what it looked like. Even if they did, it would not have helped. Chances are the developer had slipped in a clause in the agreement saying that it reserved the right to alter the specifications of the property.      The Nayaks are among the legions of buyers who are routinely taken for a ride by builders, who show them exquisitely designed sample flats. There's nothing wrong in this exercise since showcasing sample flats is a standard marketing practice.      The problem is that what you get isn't what you see (see graphic). Atul Modak, vice-president of Kohinoor City Project, admits that some developers use fixtures and furnishings worth almost 2-3 times the price of the flat itself. This lends a premium look to the flat, which could deceive the customer.      You cannot blame potential buyers for getting carried away by the looks of the sample flat. Builders have many tricks up their sleeves that give false impressions to the buyer. For instance, there are no doors between rooms in a sample, which makes the flat appear more spacious than it really is. Even the toilets and bathrooms are doorless. Some of the walls are merely glass partitions. Builders say this is done to allow buyers a better view, but the fact is that it makes the house look more commodious. The ceiling itself is much higher than that of the real flat.      The interior designers hired by the builders to do up the sample flats are experts at creating optical illusions. They know how to use lighting and place furniture in such a way that the house appears bigger. The customised beds and dining table sets are smaller than the normal size and the cupboards lack depth. A gullible buyer is likely to think that the bedroom will have enough space to move around even after placing a double bed and a study table.      The finish of the sample flat is also usually far superior and gives the buyer a sense of aspirational value. He is ready to shell out a higher sum for that kind of lifestyle. Experts point out that the superior wall finish is also because they are made of gypsum, not brick and cement plaster.     The sample house itself may be much bigger. Some of the walls may just be plywood partitions, which help add precious square inches of carpet area to the house and make it bigger. "You will see glaring differences between the sample flat and the specifications mentioned if you measure the house," says Pankaj Kapoor, managing director of Liases Foras, a real estate research firm.      However, there is no way you can compare the sample with the real. These flats are demolished after the units in the project are sold out and construction begins. Kapoor says this is also why photography and videography are not allowed inside sample flats. Builders claim this is meant to ensure that these designs are not copied, but it is not true. The architectural drawing is already available in product brochures.      Even if you have any documentary evidence on what the sample flat looked like, builders usually include a clause in the agreement, which allows them to change the specifications of the house.      There is also the issue of location. Sample flats are standalone units that offer a great view from every balcony and window. It may not be so when it is a part of a cluster of flats. For a buyer, a better indicator of what he will get is the architectural drawing of the apartment as well as the layout map of the project. These drawings will tell you the exact carpet area of the flat. Compare it with the super area promised by the builder and you will get a fair idea of the price being charged for common facilities.      However, these finer nuances are swept under the carpet when you step into a well-furnished sample flat which showcases a modern and efficient lifestyle. Om Ahuja, CEO, residential services, Jones Lang LaSalle India, says, "In some cases, visually appealing sample flats may help to detract from the fact that the project's location is not exactly cutting-edge. The onus of establishing the difference between real and perceived value lies with the buyer."      It is also advisable to have a sneak preview of the agreement before you buy. It gives you the actual specifications of the house. "One needs to check the agreement carefully before making the decision as developers clearly mention in the document the specifications of the material and fixtures to be used in the house," says Modak of Kohinoor City Project.

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Slow mkt? Firm strikes 21.5k/sq ft deal Marico Buys Office Space In Kalina Bldg For 130cr

Mumbai: At a time when Mumbai's office market is witnessing sluggish demand, FMCG major Marico has purchased approximately 60,000 sq ft of space in Grande Palladium, a ninestorey Grade A building at Kalina. The company, which currently operates from Rang Sharada at Bandra (W), will shift to its new corporate headquarters within a few months.      The Rs 130-crore deal, which translates to approximately Rs 21,500 per sq ft, is slightly higher on per sq ft rate basis than the Rs 400-crore deal (approximately Rs 18,000 a sq ft) struck by Edelweiss in 2010 for 2.5 lakh sq ft space in Lotus Midtown at Kalina. Confirming the deal, Marico said they needed the space to cater to the growing infrastructural needs of the FMCG group.      Nikhil Bhatia, head of the western region of global property consultants CBRE, said, "Unlike in other areas, Kalina is not facing an oversupply of office space. As per our data, approximately 3 lakh sq ft of office space is lying vacant against 1.9 million sq ft space being constructed in Kalina. In that context, the price paid by Marico seems at par with the prevailing rate in that area."      Property consultants say that despite the poor infrastructure facilities in the area, real estate prices in Kalina are on the higher side. "The reason is Kalina's proximity to the banking district of Bandra Kurla Complex (BKC). As a result, many companies who can't afford the high prices of BKC prefer to purchase or rent space nearby," a broker said.      In 2009, Rustomjee sold 1.42 lakh sq ft of office space in Andheri (E) to public sector firm SBI Life insurance for Rs 211 crore, close to Rs 15,000 per sq ft, and Motilal Oswal bought 1 lakh sq ft of commercial space from K Raheja Universal at Prabhadevi for Rs 160 crore.      However, the biggest deal recorded so far was when multinational bank Standard Chartered bought close to 2.5 lakh sq ft of office space in BKC for Rs 750 crore in late 2008. The bank bought the property from developer P D Developers at around Rs 30,000 per sq ft.      In early 2008, the British Council bought commercial property from Naman Developers for around Rs 45,000 per sq ft in BKC.      BIG-TICKET PURCHASE  • Marico, which currently operates from Rang Sharada at Bandra (W), will shift to its new corporate headquarters within a few months  • The Rs 130-crore deal is slightly higher on per sq ft rate basis than the Rs 400-crore deal (approximately Rs 18,000 a sq ft) struck by Edelweiss in 2010 for 2.5 lakh sq ft space in Lotus Midtown at Kalina  • Property consultants say despite poor infrastructure facilities in the area, prices in Kalina are on the higher side due to its proximity to the Bandra Kurla Complex

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The Great Layout Scam If rules on layout recreation grounds are being followed, Mumbai would have at least 23.15 sq km of such spaces, which is more than the amount of reserved open spaces

Rajya Sabha MP Jave d A k h t a r wrote to chief minister Prithviraj Chavan six months ago asking that a Mhada layout recreation ground (RG) in Juhu remain in the possession of the area's residents. The state housing authority is yet to act on the matter.      Residents and activists fighting for layout RGs, which are mandated by Development Control Regulations (DCR), have little to go on except the rules laid down in the DCR. The reason is that there are no central records on these deemed open spaces, which are not open to the general public but are for the exclusive use of local residents. Even the BMC, which is responsible for a majority of the building proposals in the city, does not  maintain a composite database on layout RGs.      The result is that not much is known about layout RGs – which by one estimate should amount to at least 4.8% (or 23.15 sq km) of the city's 482.7 sq km – and this makes them open to widespread misuse, abuse and encroachment.      The DCR requires that 15% of a plot measuring 1,001 to 2,500 sq m keep must be kept for a layout RG. This area also can't be used when calculating the building's built-up area. In plots measuring 2,501 to 10,000 sq m, 20% must be kept for an RG, and in plots measuring more than 10,000 sq m, 25% must be kept.      A senior civic official sought to clarify why no data is kept on layout RGs. "This information is available on every individual layout plan that is passed," said the official. Since the BMC is not the owner of the land, it never felt the need to maintain information on layout RGs in a separate document, said officials in the civic Development Plan (DP) department.      Unknown to citizens, a large number of layout RGs are eyed by private builders who look for land to construct on. They target layout RGs as there is no composite record of them, as opposed to traditionally reserved open spaces, like gardens, parks, playgrounds and recreation grounds, which are put on record and are open to the general public.      Architect P K Das, an organizer of the Open Mumbai exhibition currently on at the Nehru Centre, said layout RGs should account for at least 23.15 sq km of land in the city, while traditionally reserved open spaces account for just 19 sq km. "Information about layout RGs is vital, as they not only increase the amount of open space available in the city, but act as green lungs in neighbourhoods," he said.      A layout RG is created when the BMC approves construction on a particular plot. They must be compulsorily maintained for the exclusive use of the layout's residents. Often, citizens presume that they are created by the builder as an amenity to enhance the price of flats. But they are actually mandatory.      "These are deemed open spaces and it is unfortunate that the BMC has no system to document them, because they come into being when building construction plans are passed. The Pune Municipal Corporation has a system for creating such a record," said Das.      Gautam Chatterjee, Maharashtra housing secretary, said information that should be in the public domain can be put out on the civic website so that public pressure ensures the open spaces are protected and maintained.      At least three instances have come to light in Mhada layouts where housing authority officials had no qualms about offering the open space to builders. At Juhu, residents of Al-Hassanat ensured that Mhada did not hand over physical possession of their RG to builders, but the housing body has refused to renew the agreement with the residents. Even an MP's intervention and letters to the chief minister have not helped, said residents on condition of anonymity.      But residents of Plot 6 in Juhu have not been so lucky. Their open space has already been handed over to a builder and barricaded for over a year. In fact, two builders have been fighting for the plot and the residents have also intervened in court.     At a Mhada layout in Pant Nagar, Ghatkopar, a two-storey building has come up on the layout RG space. "Since a powerful politician is backing the project, even the local police refused to accept our complaint. We recently filed a complaint with Mhada and are pursuing the matter under the Right to Information Act," said a resident who spoke on condition of anonymity.  CLASSIFIED TOP SECRET  GROUND RULES      Development Control Regulations (DCR) require that 15% of the area of plots measuring 1,001 to 2,500 sq m should be reserved for a recreation ground (RG). This area also can't be used to add to the Floor Space Index      20% of plots measuring 2,500 to 10,000 sq m must be kept for an RG      25% of plots measuring more than 10,000 sq m must be kept for an RG  OPEN TO MISUSE      The DCR governs the development of all plots and layouts, including plot sub-divisions      Layout RGs are therefore Development Plan reservations and must be notified as such when a project is approved by the BMC's building proposals department      To date, there is no consolidated record or information on such open spaces in the city, which is why they are constantly open to manipulation or misuse by occupants or builders  BOON LOST Mumbai is spread across 482.7 sq km of land, according to data from the Open Mumbai exhibition 54.3% (or 262.2 sq km) of this comprises central government land (railways, airports, defence etc) and natural assets (open spaces, mangroves, beaches, hills, salt pans etc) The remaining 45.7% (220.5 sq km) is available to develop housing, services, amenities, industries and commerce A conservative estimate would place about 70% of development in Mumbai on land over 1,001 sq m. That is 154.3 sq km of 220.5 sq km So at least 23.15 sq km of 154.3 sq km (15%) should have been turned into layout recreation grounds under the DCR If this had happened Mumbai would have more layout RGs than reserved open spaces, which Open Mumbai has calculated as  19 sq km PUTTING IT ON RECORD Open Mumbai's proposals for the Development Plan and Development Control Regulations:  Upon approval of any plot sub-division or building proposal, the plot/layout recreation ground (RG) must be notified in the Development Plan  A comprehensive plot/layout RG listing, with areas and locations, must be maintained by authorities. It must be regularly updated when development is permitted on a plot  Plot/layout RGs must be protected and maintained as open spaces, with total restriction on construction  No FSI should be granted to these open spaces to prevent misuse  Source: P K Das & Associates GOLD OR GREEN: Two builders are fighting each other in court for this Juhu plot, but residents have intervened saying it's a layout recreation ground for their use PLAY SPACE IN BALANCE: Mhada has not yet agreed to allow Juhu residents to renew their deal to maintain this layout ground

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Pranab is lucky 13th Sweeps Prez Poll With 69% Of Valid Votes

New Delhi: Congress leader Pranab Mukherjee's big win in the presidential election—which makes him the 13th occupant of Rashtrapati Bhavan—marks the return of an active politician at Raisina Hill after three successive occupants who were either past their prime in politics or did not have a political background at all.      Since July 1997, when K R Narayanan became president, the high office has been held by missile man A P J Abdul Kalam and Pratibha Patil whose careers had peaked, while Mukherjee was a hands-on politician playing a crucial role in UPA affairs.      Unlike his predecessors who were picked as safe choices by the  ruling establishment of the day, Mukherjee sought the job and even bent his party to his will, aided by some ill-timed pressure tactics by Congress ally Mamata Banerjee that yielded unexpected results.      Interestingly, Mukherjee will move to Rashtrapati Bhavan from 13, Talkatora Road, a fact that may interest the numerologically inclined. Those who know Mukherjee say his sense of the Constitution, politics and grasp of governance make him his own man who cannot be taken for granted as President. Mukherjee made the point, saying he would try and fulfill expectations to "defend, preserve and protect" the Constitution.      Mukherjee polled a vote value of 7,13,763 or about 69.3% of the valid votes in the electoral college (or 65% of all votes) — aided by cross-voting from BJP legislators in Karnataka. Opposition nominee, former Speaker P A Sangma, secured a vote value of 3,15,987, handing Mukherjee a handsome margin.      After the result was finally out on Sunday evening, Congress chief Sonia Gandhi, accompanied by son Rahul, called on Mukherjee to congratulate him. The presence of Rahul was noted, particularly in the context of his announcement that he was accepting a more active role in Congress affairs.      Soon after, PM Manmohan Singh reached Mukherjee's residence where celebrations were underway since the afternoon when his tally crossed the halfway mark.      Cross-voting by BJP MLAs in Karnataka, where the party is in majority, saw Mukherjee gaining a lead of 117 votes to Sangma's 103. BIGGER MARGIN THAN EXPECTED  UPA candidate Pranab Mukherjee polled 7.14 lakh votes, or nearly 69% of valid electoral college votes, thrashing P A Sangma who got 3.16 lakh Pranab got  more than 7.11 lakh committed votes of UPA and parties like JD(U) & Shiv Sena  Sangma's committed support was around 3.10 lakh votes. He gained from additional votes in states like W Bengal As many as 15 votes cast by MPs were invalid, including nine for Pranab UPA had  expected 535  votes of MPs, got 527. One Oppn MP cross-voted. In all, 81 votes termed invalid In BJP-ruled  Karnataka, Pranab got 117 votes to Sangma's 103. In Jharkhand, vote again showed up divide in NDA Cong sees major success in win      The break in NDA was also evident in Jharkhand where Jharkhand Mukti Morcha supported the UPA candidate on expected lines although two independents voted for Sangma. There were as many as 15 invalid votes cast by MPs, with nine favouring Mukherjee. These would entail a loss of a significant 6,372 votes for the UPA camp. Overall, there were 81 invalid votes and although Sangma suffered due to crossvoting, his tally exceeded the committed opposition vote value by around 5,000.      Congress leaders sought to rub in cross-voting in the opposition ranks while BJP spokesperson Ravishankar Prasad admitted that the Karnataka vote did not reflect the party strength. But he added that the opposition tally was a record with the BJP joining forces with parties such as Naveen Patnaik's BJD and J Jayalalithaa's AIADMK.      The successful election is, however, a major success for Congress that has been grappling with rough weather over a slowing economy and trouble from allies, particularly the Trinamool Congress and the Nationalist Congress Party. After the result, Mukherjee spoke to Mamata Banerjee who agreed to come to Delhi for the swearing-in. In an effort to mend fences, he is understood to have insisted on Banerjee's presence, saying the ceremony would be incomplete without her.      The conclusion of the presidential election and the expected smooth sailing in Vice-President Hamid Ansari's reelection is set to clear the way for some energetic action on the governance front with the PM focusing on some much-needed reform measures. ONE FOR THE ALBUM: (Left to right) The PM's wife Gursharan Kaur, PM Manmohan Singh, LS Speaker Meira Kumar, Mukherjee's wife Suvra, Pranab Mukherjee, Sonia and Rahul Gandhi

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INDIAN ARCHITECTS AWARDED

Three Indian based architectural and design firms won the first prize at AITAwards 2012 held in Germany recently. AITAward is a globally recognised award for the very best in interior and architecture space. The award ceremony took place at Frankfurter Messe recently. Architecture and interior projects from all over world were invited for submission across 20 different award categories. The Indian based projects were selected amongst 1,750 entries from 47 countries. Arun Nalapat Architects, Bangalore, won for the "Star - 2, Strides" project in Bangalore, Sandeep Shikre and Associates, Mumbai won for "Mudra House Mumbai" project in Mumbai for the office interior category and in the public building interior category and Morphogenesis, Delhi won for Chettinad Health City Auditorium project in Chennai.

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SPEEDY CLEARANCES

Agroup of five members, including IIT staffers, retired BMC andMHADA officials and the deputy secretary (environment) for environment clearance are part of the second committee for environmental clearance in the state of Maharashtra. The committee, SEAC-II, will clear construction projects mainly in the MMR region

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Raheja wins appeal against Wadia in Malad land case

'Ferani Can Build On 460 Acres, Sell Minus Wadia's Nod' Mumbai: Real estate baron G L Raheja won a significant victory against industrialist Nusli Wadia when the Bombay high court on Thursday allowed his company, Ferani Hotels, to build on 460-acre land in Malad and sell the premises, without conditions. Wadia said he would appeal against the order before the Supreme Court.      The developer has been embroiled in a legal tussle with Wadia, the sole administrator of the plot, worth Rs 20,000 crore. The HC set aside a two-year-old order restraining Raheja from handing over the possession of any structure his firm built on the land without Wadia's nod. Among the properties constructed on 350 acres of the land are Infinity Mall, Interface Complex, Infinity IT Park, and Palm Court Complex. But taking away the partial relief granted by Justice Roshan Dalvi to Wadia, a bench of Justice D Y Chandrachud and Justice R D Dhanuka said an "injunction to preclude sale and possession without consent of parties would bring the entirety of projects virtually to a standstill".      The dispute centres around a 1995 agreement between Wadia and Ferani Hotels that allowed K Raheja Construction to develop the E F Dinshaw land in Malad and pay 12% of the gross sale proceeds to Wadia.      The HC bench has directed that Raheja must continue depositing the 12% share. The court held the intention of the two parties was to sell to "genuine third parties" as contended by Wadia.      The HC appointed retired HC judge S K Shah to record evidence of all past deals and submit a report in three months. Once the report is ready, within three months, a judge will have to decide if Wadia's claim in suit is barred by the law of limitation that places a three-year bar against initiating cases for relief in monetary disputes.      Raheja said disagreement arose in 2000 and Wadia approached the court eight years later. In 2008, Wadia terminated the 1995 deal claiming the developer had breached it by "fraudulently selling to own nominees and not genuine third parties". He moved the HC to prevent further construction by Raheja and sought damages of Rs 1,370 crore saying the power of attorney granted to Raheja was misused to deprive him of his 12% share by undervaluing the deals. Refuting the allegation, Ferani said it paid Wadia Rs 223 crore, an amount he was entitled to.      In 2010, Justice Dalvi said a fraud, if any, came to light in 2000 and placed conditions on Raheja's sale. Raheja's firm and Wadia moved the HC and their appeals were decided on Friday when Wadia got no relief.      Wadia's solicitor Shrikant Doijode and counsel Fali Nariman argued the builder had committed a fraud, the deal was ended and thus he was not entitled to develop the land. Denying fraud, Ferani's solictor Vivek Vashi and counsel Abhishek Singhvi stressed that jurisdiction must first be decided by court before going into merits of a case. They said Wadia's suit was time-barred. Wadia's counsel argued it was a "continuing fraud" and attributed the two-year gap between filing a suit and applying for interim order toBMC's 2009 reply that, in the absence of a court order validating the termination of Raheja's power of attorney rights by Wadia, it could not stop issuing development permission to the builder. Raheja's lawyers took exception to Nariman, pointing to ready reckoner that lists market value of properties, a point the judge accepted. "Can a stay on construction be warranted at this stage?" HC asked. Disposing the appeals in Raheja's favour, its answer was in negative.

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State holds out redevpt hope for island city bldgs

Mumbai: With redevelopment plans of over 250 buildings in the island city being stuck for long, minister of state (housing) Sachin Ahir on Thursday offered tenants living in such structures a ray of hope. 

    Referring to projects that have been in limbo for over a decade, Ahir said 70% of the tenants of such buildings could come together and approach the state government for permission to appoint a new builder/developer/ or contractor for redevelopment. 
    During a calling attention motion in the assembly, the issue of tenants of such buildings being left in the lurch—after developers abandoned or lost interest in the projects—was raised. Members from both ruling and oppositionbenches expressed concern. 
    Ahir, meanwhile, introduced a rider that could have an impact on the redevelopment of other buildings as well. "Consent, once granted to a developer, will not be revocable in the immediate future," Ahir said, while referring to cases where members have withdrawn their consent to a developer within a year or two after giving the same. 
    After members complained of lack of tenant welfare, Ahir announced plans to draft a model agreement. This, he said, would be available online. A redress committee for projects involving Mhada's reconstruction and redevelopment board and other boards across the state was announced on the lines of slum schemes. 
    Raising a calling attention motion on various redevelopment issues, Nawab Malik (NCP) demanded that approvals for cluster redevelopment schemes be expedited. Amin Patel (Congress) raised issues related to changes in parking norms for rehabilitation buildings on cessed premises and in Mhada colonies. Patel also demanded a review of the nod granted to a cluster redevelopment scheme in Chira Bazar. 
CM's no to 4 FSI 
    An option to use a an FSI of 4 on a plot housing a number of dilapidated and illegal buildings in Thane was not acceptable, chief minister Prithviraj Chavan said on Thursday. He also disclosed plans to fast-track the redevelopment of dilapidated buildings in the region.

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Wadhwa, Deserve Exim Ink Pact for 13.5-acre Chembur Slum Rehab Project

Mumbai-based builder Wadhwa Group has entered into an agreement with another local developer Deserve Exim to acquire a slum rehabilitation project spread over 13.5 acres in city suburb Chembur, said persons familiar with the development. The project, with total estimated saleable space of over 8 lakh sq ft, has revenue potential of nearly . 900 crore. Deserve Exim has already applied to the slum rehabilitation authority with the project proposal, and the development potential may vary according to the actual clearance, said one of the sources. 

The 13.5-acre plot is part of a larger targeted project spread over 40 acres. However, Wadhwa has so far entered into development pact for only first phase and is yet to decide on participating in the entire 40-acre project. 
Under the joint development 
pact, Wadhwa Group will get 60% revenue of the project, while the rest will go to partner Deserve Exim. As part of the transaction, Wadhwa Group is also expected to pay around . 50 crore as an upfront payment for the project in two tranches. 
Wadhwa Group officials declined to comment for the story, while an email query sent to Deserve Exim remained unanswered. The slum, under first phase of the project, is situated behind RK Studio in Chembur and has total 850 tenements who will need to be rehabilitated to claim the free-sale component of the project. 
Wadhwa Group is planning to develop residences targeting middle-income group. Currently, rate of such residential properties in Chembur is between . 11,000 and . 12,000 per sq ft. 
In the backdrop of scarcity of open and vacant land parcels in Mumbai, slum rehabilitation projects have been attracting realty developers with an opportunity to get prime plots. However, despite being developers, many large entities do not have the expertise in handling an SRA project, which most importantly involves handling tenant issues and, therefore, they prefer tie-ups to get access to these land parcels. 

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Earnings Preview Realty Cos may Report Flat Growth This Time

Both residential & commercial markets witnessed low absorption in    The realty market was more or less subdued during the quarter ended June 2012. Sales volume and absorption rates were low in the residential segment, while high inventory and slow execution of projects continue to be a cause of concern.  Most real estate companies are expected to report flat-to-moderate growth in sales volumes for the June quarter. The industry may see only a moderate reduction in debt, with most companies, including DLF and HDIL, still showing stretched cash flows. The commercial real estate market was characterised by low absorption and a slight drop in rentals in the metros.  While residential realty prices have remained firm and even risen in some areas of the Mumbai Metropolitan Region, absorption has remained low. As a result, Mumbai-based companies like HDIL and Oberoi Realty are likely to post subdued growth, more so on a sequential basis. The market in Bangalore has been fairly strong and stable, compared with Mumbai and Delhi. This will be reflected in the performance of south-based companies such as Sobha Developers, Prestige Estates and Puravankara Projects. Labour and raw material costs like that of steel and cement accounts for 70% of the construction costs of real estate companies. Expenses on these heads have moderated and were more or less stable in the June quarter.  Moreover, the sharp slide in the rupee is likely to prompt NRI investment in the property market. Regions such as Bangalore, the National Capital Regionand Pune would benefit on this count. The BSE Realty Index has underperformed the Sensex since the end of February 2012. In the absence of any positive trigger, this is likely to continue in the near term. With no sign of a price correction in the offing, volume growth is likely to remain poor.  A softening of interest rates could help revive demand, while refinancing of developers' loans would enable companies to complete projects and repay debt. However, with RBI maintaining a cautious stance on rates, debt-ridden realty firms will have to wait a while for any reprieve. Analysts expect Mahindra Lifespace, Sobha Developers and Prestige Estates to post moderate-to-strong growth in revenues for the quarter.  kiran.somvanshi@timesgroup.com

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Societies harness rain power as BMC flounders

Civic Bosses Propose Unusable Ideas Like Desalination To Tackle Water Shortage

 Several peculiar ideas have been thrown up in the Brihanmumbai Municipal Corporation to give the city round-the-year, roundthe-clock water, including cloud seeding. But several housing societies have not waited for these plans to materialise, instead helping themselves by opting for rainwater harvesting. 

    Municipal bosses have often travelled abroad for "study tours" to learn ways to deliver the city from its not infrequent water crises. Their recommendations have been as diverse as desalination, cloud seeding and water recycling. Realistic citizens, however, have taken steps of their own. Two societies that 
TOI visited–Raheja Vihar Rainbow society in Powai and Avanti Niketan CHS, Sion–chose rainwater harvesting to circumvent recurring water shortages. 
    Residents of Avanti Niketan made the key decision in 2007. "We needed an ecofriendly way to solve our problem and rainwater harvesting was the ideal solution for us," said Gaurang Damani, a social activist and a committee member. "We did not have technical knowledge of how to set up the system but somehow we managed to gather the information from the internet and put it up." 
    The residents used their open terrace, which is roughly 500 sq m in size, as a catchment area. The rainwater that falls on the terrace is channelled through pipes into a storage tank at the base of the building after basic filtration. This water is pumped back to a separate tank on the terrace, which is connected to all the toilets in the building. The society spent a little more than Rs 1 lakh on the project; but the money, they say, was well spent. 
    "The water from our rainwater harvesting system is used for all secondary purposes like gardening, washing cars and the building premises as well as in our toilets," said Lyomesh Takwani, another committee member. 
    Residents of Powai's Raheja Vihar Rainbow say water tankers have not been called to their society in years. The society installed two rainwater harvesting systems, one of which gathers water from the society's 12,000 sq ft terrace while the second collects rainwater falling on the lawn. 
    Rainwater from the terrace is collected in a 15,000-litre tank beneath the car park through special pipes. The water from the tank flows into a filtration system consisting of a layer each of fine sand, activated charcoal and gravel. This water is then let into the well where it is stored. 
    "Before we installed the system, there was a water shortage. The society used to spend about Rs 4 lakh on water tankers. No more. The society has not had a tanker come in since the last five years," said A K Mukherjee, a retired engineer and a resident of the society. 
Times View: Learn from citizens 
    One would have thought the BMC would have learned a lesson from the bad monsoon a couple of seasons ago and put in place a mechanism that would assure the city of adequate water in taps. It's a shame that the country's richest civic agency has to depend on the monsoon to fulfil citizens' basic needs. The BMC should stop thinking of outlandish ideas and try to emulate what some housing societies have done. Why doesn't it plug the leaks in its distribution system? Doing just that would solve the problem to a large extent.

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