NCLT directs initiation of insolvency proceedings against Raheja Develipoers

The National Company Law Tribunal has directed to initiate insolvency proceedings against realty firm Raheja Developers on a petition filed by flat allottees of its Gurgaon-based Shilas project. The NCLT said Raheja Developers has a "debt due and default" against the flat allottees, who had made their payments and delivery of the units was not on time and referred it for Corporate Insolvency Resolution Process (CIRP). The Application bearing... filed by the Applicants under Section 7 of the Insolvency & Bankruptcy Code, 2016, for initiating CIRP against Raheja Developers Ltd is, hereby, admitted," the NCLT said. A two-member NCLT bench, comprising its President Justice Ramalingam Sudhakar and AK Srivastava, has also appointed Manindra K Tiwari aslo appointed Manindra K Tiwari as the Interim Resolution Professional for Raheja Developers. Further, possession was to be given in the year 2012-2014 with a grace period of 6 months. However, it was extended further. This debt has been acknowledged via various emails, and the default is continuing, it said. The matter relates to the Raheja Shilas project located at Sector 109, Gurugram, Haryana. Over 40 flat buyers have claimed a default of Rs 112.90 crore against the realty firm. The petitioners had submitted that they have paid over 95 per cent of the total sale price and 100 per cent of all the demand made to date as per the demand letter issued by Raheja Developers in the majority of cases. Advocate Aditya Parolia represented the association of Revanta, Vanya and Aranya projects of Raheja Developers in the matter. Earlier also, insolvency proceedings were initiated against Raheja Developers in 2019 over a delay in its Raheja Sampada project. However, in January 2020, it was set aside as the delay in the project was on account of the absence of clearance by the competent authorities, which was beyond its control.
 

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Cost of construction rises up to 11 percent annually in 2024 across real estate segaments Colliers

The average cost of costruction is estimated to have increased by up to 11% over the past year. Average cement prices have seen a steep decline of 15%, while average steel prices have witnessed a marginal 1% decrease over the last 12 months, according to Colliers. The cumulative effect of rise in the prices of four key construction materials including cement, steel, copper and aluminum have been relatively low. Badal Yagnik, CEO, Colliers India said, “While rise in prices of key construction materials was relatively modest over the last year, labour costs have been driving the overall cost of construction upward. With labour accounting for more than one-fourth of overall construction cost, a 25% annual rise in labour costs has stretched construction budgets and impacted operational expenses. Moreover, the need for skilled labour and the associated costs for training, safety and regulatory compliance further adds to spiraling labour costs. As of October 2024, cost of construction in the residential segment saw an estimated 11% increase year-on-year. Amongst various real estate segments, construction cost escalation has been relatively sharper in the residential segment. The growing focus on better building quality and the rising demand for well-equipped gated communities have encouraged residential developers to improve their projects, which has led to higher construction costs in the housing sector. Real estate developers are increasingly making investments in training and automation to address challenges related to volatilities in the availability of skilled manpower, which in turn can potentially facilitate better project scheduling. 
 

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Bengaluru based Ambica Constructions CEO held for evading rs 116cr Tax

Cracking down on tax evasion, Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru zonal unit, Intelligence (DGGI), Bengaluru zonal unit, uncovered a multi-crore fraud alleged involving Bengaluru-based Ambica Constructions and Contractors, which is engaged in work contract services, and arrested its CEO, Praveesh Kuzhipally. The company was found guilty of violations under GST Act, 2017, including fraudulent availment of ineligible input tax credit (ITC), suppression of taxable turnover and non-payment of collected taxes to the govt amounting to approximately Rs 116 crore. According to a DGGI release, the company falsely availed ITC based on invoices from bogus suppliers. "Using advanced data analytics tools and RFID-tracking of vehicle movements, it was found that the firm unlawfully claimed over Rs 11.8 crore in ITC from non-existent suppliers. Kuzhipally has been remanded in judicial custody for 15 days. The company has already paid over Rs 3.1 crore of its outstanding dues voluntarily.
 

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Sebi slaps rs 26 crore demand notice on Reliance Big Entertainment in RHFL fund diversion case

Capital markets regulator Sebi has asked Reliance Big Entertainment to pay Rs 26 crore in fines for failing to clear penalties imposed by the regulator in a case pertaining to illegal diversion of funds. The regulator also warned that assets, including bank accounts of Reliance Big Entertainment Pvt Ltd (now known as Rbep Entertainment Pvt Ltd) will be attached if they fail to make the payment within 15 days of the notice issued on Thursday. The notice was issued after the entity (Reliance Big Entertainment) failed to pay the Rs 25 crore fine imposed by the regulator in August this year. In the demand notice, Sebi directed the entity to pay Rs 26 crore, including interest and recovery costs within 15 days. In August this year, the markets watchdog barred industrialist Anil Ambani and 24 others from the securities market for five years on charges of diversion of funds from RHFL. Additionally, Sebi has imposed a penalty of Rs 25 crore on Ambani and restrained him from serving as a director or Key Managerial Personnel (KMP) in any listed company entity for five years. In early November, Sebi issued demand notices to six entities, including RHFL's promoter entity Crest Logistics and Engineers (now known as CLE Pvt Ltd), and asked them to pay Rs 154.50 crore. Last week, Sebi asked six entities, including RHFL and former company officials, to pay Rs 129 crore in penalties. On Tuesday, the markets regulator also asked Mohanbir Hi-Tech and Indian Agri Services to pay Rs 52 crore in fines for the illegal diversion of funds from RHFL.
 

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Flats with interlinking passage cannot have separate electricity connections TNERC 

Owning two flats in an apartment building with an interlinking passage will not make one eligible to enjoy two separate electricity service connections even though two separate property taxes and maintenance charges are paid, Tamil Nadu electricity ombudsman has said. The ombudsman rejected the argument of the petitioner, S Manimekalai of Mylapore, that the internal passage linking two tenements was only a temporary arrangement as they were senior citizens.It said that the interlinking passage violated TNERC distribution code and would cause a loss to the state govt as the petitioner would enjoy 200 units of free power. Tangedco's assistant engineer for the Luz section in 2023 received a complaint from an anonymous person claiming misuse of electricity by two flats in an apartment in Mylapore by making an internal passage. Tangedco officials inspected premises belonging to Manimekalai and confirmed that the two flats had an internal link by demolishing a portion of a wall separating the houses. While a notice was issued to Manimekalai to merge both connections, she approached the consumer grievance redress forum (CGRF). "Both flats maintain completely separate identities, with individual property documents such as separate house tax bills, separate water tax bills, individual kitchens, and separate maintenance bills. 
 

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Morgan Stanley others acquires 6 percentage stake in PNB Housing for rs 1664 crore

Morgan Stanley, Societe Generale and another entity on Wednesday picked up a total of 1.77 crore, or 6.82 per cent stake, of PNB Housing Finance through open market transactions worth Rs 1,664 crore. According to bulk deal data available on the National Stock Exchange (NSE), Morgan Stanley through its arm Morgan Stanley Asia Singapore purchased over 1.42 crore shares or a 5.4 per cent stake in PNB Housing in two transcations. Ghisallo Master Fund bought 17.90 lakh shares of PNB Housing while Societe Generale acquired 17.09 lakh shares of the firm, as per the data. The shares were bought at an average price of Rs 939.30 apiece, taking the combined transaction value to Rs 1,664.55 crore. The shares were sold at an average price of Rs 939.42 per piece. After the transaction, Carlyle's stake has come down to 10.44 per cent from 19.87 per cent. Details of the other buyers of PNB Housing Finance's shares could not be ascertained on the exchange. In July, US-based Carlyle divested a 12.8 per cent stake in PNB Housing Finance for Rs 2,578 crore. Shares of PNB Housing Finance declined 6.90 per cent to close at Rs 915.35 apiece on the NSE.
 

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NBCC signs MoU with Income Tax Department for rs 263 crore project in Kanpur 

NBCC (India) has signed a memorandum of understanding (MoU) with the Income Tax Department for the construction of the "Pratyaksha Kar Bhawan along with a residential complex and multi-story training unit set up in Kheora Bangar, Kanpu, Uttar Pradesh. The estimated value to the project is Rs 263 crore. It is set to be completed within 30 months from the start date. Separately, the company was awarded work of demolition and comprehensive design engineering, construction and furnishing of four buildings in Andheri and Malad area of Mumbai by New India Assurance. The value of work is approximately Rs 136 crore. GAIL also awarded the work of planning, designing and execution of interior/fit out works for its new office at World Trade Center, New Delhi. The estimated value for this work is Rs 50 crore.
 

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HDFC Bank to montise properties inherited during merger

In a major strategic move, HDFC Bank has decided to divest several key commercial properties inherited during its 2023 merger with its mortgage-lender parent, HDFC, said persons with direct knowledge of the development. Monetisation of these assets, which include some residential apartments, could together fetch about ?3,000 crore for India's most-valued bank. The assets to be sold include the HDFC House in South Mumbai's Churchgate and residential apartments that were allotted to HDFC's senior officials earlier. Commercial assets across south Mumbai, Kalina, Chandivali and other cities including Kolkata, Mysore, and Bengaluru are valued at around ?2,400 crore. Residential apartments are likely to be valued around ?800 crore. HDFC House was acquired by the housing finance company from Hindustan Unilever in 2014 for ?300 crore. This property, erstwhile Lever House, used to house Hindustan Unilever's headquarters before it was shifted to the Andheri suburbs. 
Prior to this buyout, HDFC used to be a tenant in this commercial building spread over 153,000 square feet. The bank has, however, decided to keep Ramon House, the erstwhile headquarters of HDFC, out of this monetisation exercise. Additionally, the move also reflects HDFC Bank's proactive steps in capitalising on the current demand surge in commercial property  market, driven by a recovering economy and increasing interest from both domestic, international investors.
 

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Chennai Illegal sand dune mining in Injambakkam beach threatens coastline

Sand dunes have been illegally excavated in Injambakkam, near VGP theme park, despite coastal regulation zone rules prohibiting such excavation. "Since last week, dunes have been removed for at least 100 metres along the beach.I filed a complaint with Neelankarai (J8) police," said I H Sekar, a local social worker, alleging that the mined sand is being sold for 200 per load, and he faced death threats from miscreants after confronting them. In May, the National Green Tribunal prohibited CMDA from disturbing dunes on Injambakkam beach, mandating permissions from Union govt or State Coastal Zone Management Authority. CMDA member secretary Anshul Mishra said the planning agency did not disturb the dunes. "To prevent illegal sand mining, we are planning beach rejuvenation," he said, adding that CMDA received Blue Flag council approval for five beaches including Injambakkam and Akkarai with a GO expected next week. Greater Chennai Corporation maintains city beaches. "I will verify and take further action," said GCC zonal officer (Sholinganallur) D Rajasekar. In Besant Nagar, GCC has removed encroachments from the Arupadai Veedu Murugan Temple beach since June.

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Noida, Greater Noida , and YEIDA resume work on unfield land allocation policy 

Brigade Group has signed a joint development agreement to develop a residential project of around one million sq ft in Chennai. The project, located in West Chennai will be developed as part of a 1.5 million sq ft mixed-use development and will have a gross development value (GDV) of about Rs 800 crore. In June 2024, the company had said that it plans to invest over Rs 8,000 crore by 2030 to expand its portfolio in Chennai with a pipeline of over million sq ft. The gross development value (GDV) of the residential projects is estimated to be over Rs 13,000 crore
 

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IBBI proposes reforms to streamline insolvency process for real estate companies under IBC rules 

The Insolvency and Bankruptcy Board of India (IBBI) on Thursday proposed reforms to streamline the insolvency process for real estate companies and enhance protection for stakeholders. These amendments have been proposed to enhance the efficiency and effectiveness of real estate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) rules. In a discussion paper issued on Thursday, IBBI said one of the major proposals is the inclusion of land authorities in Committee of Creditors (CoC) meetings as invitees without voting rights. In corporate insolvency resolution processes (CIRP) involving real estate companies, land authorities play a crucial role but currently lack mandatory representation in the CoC. Currently, only financial creditors have representation in the CoC, leaving out land authorities despite their critical role in real estate projects, Their inclusion will enhance and bring clarity on regulatory compliance, and ultimately improve the feasibility of resolution plans, it added. The discussion paper also highlighted issues related to cancelled land allotments in insolvency cases, wherein the IBBI proposed that resolution professionals report such cancellations to the CoC, allowing stakeholders to make informed decisions on whether to pursue liquidation or continue with the resolution process. Accordingly, the IBBI has asked stakeholders to provide comments on the proposals by November 27. After considering the comments, the board proposed to make rules under clause of section 196 of the code. 
 

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Ashiana Housing to develop senior living projects in Karantaka and Jaipur

Ashiana Housing has entered into a memorandum of understanding (MoU) to develop a senior living project on a land admeasuring around 12.50 acres located at Kanakpura Road, Harohalli, Karnataka. The saleable area of the proposed group housing project is estimated at around 11 lakg sqft. The MoU has been entered with three individuals who are owners of the land and the joint development agreement will be executed within the next six months. Separately the company also informed that it has entered into an agreement to lease to develop a group housing project on a land admeasuring around 20 acres located in the social infrastructure zone of Mahindra World City, Jaipur. The saleable area of the proposed group housing project is estimated at around 20 lakh sq ft. Agreement is entered into with Mahindra World City (Jaipur) and lease deed will be executed within the next 90 days.

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