MUDA urged to reduce fine for illegal plots

 12 February 2010, 10:13pm IST


 Mangalore Urban Development Authority (MUDA)
   

MANGALORE: The Karavali Karnataka Civil Rights Protection Trust
 has urged the urban development minister to reduce the
fine amount for legalizing
illegal layouts from 15% to 5%.

Protesting against various shortcomings
in the Mangalore Urban Development Authority
 (MUDA) and city corporation in front of the
deputy commissioner's office here on Thursday,
Mariamma Thomas, president of the trust, said
DK and Udupi had a different topography than
the others parts of the state and the MCC and
MUDA were framing rules which were inconveniencing
 the people.

She pointed out that the MUDA officials take months
 to grant a zone or a no objection certificate (NOC)
and demanded the minister to direct officials to give
 zone certificate in a week, NOC within a fortnight
and layout certificate in a month.

The other members pointed out that while getting
permission for a residential building, the MCC officers
demand for a single site approval from MUDA.

They argued that when MUDA takes months for a
zone certificate; this will take more than a couple
of months, urging minister to simplify licensing norms
 and give door numbers to houses which have been constructed by poor.

They have demanded a change in master plan, claiming
that officials carried out the exercise without taking
people into confidence and appoint a special officer
 for public contact meet at least once in six months.

Stalin transcends deep divide, invites Jaya for govt function

M Gunasekaran,  13 February 2010, 04:47am

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CHENNAI: In a rare political gesture, Tamil Nadu
deputy chief minister MK Stalin has invited his political rival,
AIADMK chief J Jayalalithaa,for the launch of the DMK government’s ambitious
 Kalaignar Housing Scheme to construct 21 lakh concrete
 houses for the poor.

“It’s not an unusual thing. We always adhere to democratic
principles and don’t ignore the Opposition parties.

Since she holds the post of the Leader of the Opposition,
I have written to her inviting her for the inauguration of
the Kalaignar Housing Scheme, which is one of the major schemes
implemented by our government,” Stalin told The Times of India.

In a state where rival leaders seldom even greet each other,
such gestures are rare. But in the past, Stalin is known to have
extended similar courtesy. In 2001, he, along with DMK general
secretary K Anbazhagan, attended the swearing-in ceremony of
 Jayalalithaa when her party returned to power. When the tsunami
 struck the state in 2004, Stalin, who was an opposition MLA,
met Jayalalithaa, who was then chief minister,
at Fort St George to hand over a cheque on his party’s
behalf for the relief fund.

Stalin, who holds the rural development portfolio and
 is entrusted with the job of executing the mega project,
has written letters to all parties represented in the Assembly.

“From Jayalalithaa to Jagan Moorthy (Arakkonam MLA, heading a
fringe dalit outfit), I have written letters to all of them
inviting them for the function,” he said, recalling his earlier
invitation to them for the launch of the Anaithu Grama
Anna Marumalarchi Thittam (Anna infrastructure scheme for all villages).

Low rate home loans will disappear soon

12 Feb 2010 03:42 AM

Mumbai: Ultra-cheap housing loans are soon going to be a thing
of the past. Banks are winding down their fixed-cum-floating
rate home loan schemes, where rates were in the 8-8.5% plus
range for the initial year, with the provision that rates may be raised later.

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Axis Bank has already withdrawn its fixed-cum-floating
rate loan and Union Bank of India told DNA that it was
withdrawing its teaser loan scheme starting February 15.
“We will be offering floating rates of interest starting February 15,” said a bank official.

Housing Development Finance Corporation (HDFC)
has said that its scheme is available till February 13.
Will the scheme, where the interest rate is 8.25% initially
(and then converted to floating) be extended? Keki Mistry,
chief executive officer of HDFC, said no decision had been
made as yet. “Basically the product is a function of how we
are able to raise (cheap) money.
It will be decided closer to the date,” Mistry said.

Other teaser home loan schemes,
including that of the State Bank of India,
are expected to be reviewed shortly.
State Bank chairman OP Bhatt has already
gone on record to say that he expects rates
to rise after April.

Industry experts feel there is a need to put a brake
on these fixed-cum-floating rate schemes due to
the changing interest rate scenario. RR Nair,
chairman of LIC Housing Finance, says:
“These schemes need to be stopped now.
It is not a right business tactic. Any discount
of more than 50 basis points (0.5%) on a
promotional basis is not good. This means your
existing customers are paying much more then
the new customers. You are creating a different class of customers.”

He also voiced concerns over the period of current teaser loans,
where the fixed rate ends and the floating rate starts after the initial
year of the home loan. “After the one-year period, will the
customer be able to afford the loan if the EMI goes up by 35%.
It is a concern for both customers and the institution (home loan provider).
Bad loans too can rise,” Nair said.

Signalling that interest rates on loans would rise,
IDBI Bank on Wednesday announced a rise in fixed
deposit rates by 0.25% for varying periods between
six months and 1,100 days. The bank now offers 6.75% on
a one year-500 day deposit, rather than 6.50% earlier.

On 500-day deposits, one can get 7%.

Unitech to launch 13 new projects in 2-3 months

12 Feb 2010 03:40 AM

Real estate major Unitech today said it plans to
launch 12-13 new projects, most of them residential,
in the next few months.

“We will be launching 12-13 new projects,
predominantly in the residential side, in next 2-3 months
across the country,”
Unitech Managing Director Sanjay Chandra told here.

The total space of these new projects would be
7-8 million square feet, Chandra said.

The company is also focussing on reducing debt.
The realty firm has already brought down its debt
from Rs 10,000 crore to below Rs 6,000 crore.

“In FY11, we plan to reduce our debt by another
Rs 1,000 crore,” Chandra said.

Going forward, Unitech focus would be on affordable housing,
except in Mumbai where it would concentrate on premium
segment due to high land prices, he said.

Tallest residential building in Mumbai may have 125 floors

Posted: 12 Feb 2010 03:39 AM

MUMBAI: In what seems like a sign of recovery in the real estate industry,
a consortium of three leading developers has proposed what may be the
city’s tallest residential building—486 metres high and having about 125 floors—
on Keshavrao Khade Marg near the Mahalaxmi Race Course.

Still at an initial stage, the project’s layout plan was submitted last
week to the state-appointed high-rise committee by Joyus Housing Ltd,
a consortium floated by three developers, Shapoorji Pallonji, Ackruti and DLF Group.

While the tower will have parking space on six floors, another five floors
are proposed to be kept vacant for a refuge area to be used during an
emergency; the remaining 114 floors will house flats and suites.

The developers have already started planning the process of shifting
around 4,000 people, many living in hutments and others in the
BMC staff quarters on part of the plot, to transit accommodation.

“As a project, we don’t intend to make it the tallest in the city.
As it is, this is at a very early stage and there are still hundreds
of clearances to be taken. It will be a lengthy procedure until a
final height limit is arrived at and it could take at least two years,’’
said Hemant Shah of Ackruti.

Officials from the high-rise committee confirmed the project as the
tallest building proposal they have received since the committee
was formed six years ago. The second tallest proposed structure
the committee is studying is Skylark Heights at Worli.

The project proposes two separate towers, commercial at a
height of 159.9 m and a residential one 375.6 m in height,
and will be roughly 74 floors over and above three floors for
the basement and another 11 for parking.

As a symbol of Mumbai’s financial might, the MMRDA
too recently announced an over-100-storey “iconic tower’’ at
Wadala. The height of the tower (526 m) is likely to make it
the tallest as and when it comes up.

MMRDA officials, however, confirmed that due to red tape,
the height is likely to be scaled down to 80 floors.

But no official proposal has been floated as yet by the agency.

SBI hints interest rates may rise from June 2010

Posted: 12 Feb 2010 03:38 AM

The country’s largest lender State Bank of India has hinted that lending rates may rise from the second quarter of fiscal 2010-11, even though there is no immediate pressure on interest rates.

“So far as bank lending rates are concerned, I do not expect lending rates going up before May-June,” said O P Bhatt, chairman, SBI.

Bhatt said money supply is under pressure, but interest rates will remain stable in immediate future.
“(There is) pressure on liquidity, but no immediate pressure on interest rates,” Bhatt said.

In its monetary review recently, the RBI asked banks to keep more cash with it, which will shrink money supply by Rs 36,000 crore from the system.

The apex bank’s move to hike Cash Reserve Ratio (CRR), portion of deposits banks kept in cash with the central bank, by 75 basis points to 5.75 per cent will come into effect from February 13 in two tranches.
Earlier, the largest private sector lender, ICICI Bank CEO and MD Chanda Kochhar had also said that there would be upward pressure on interest rates from the second quarter of this fiscal, because demand for investment would increase.

Bhatt added that its associate bank SBI Indore will be merged into it by March-end.

The government and the SBI Board has already given in-principle approval to the merger. SBI Saurashtra has already been merged into the parent company.

Bhatt also said the SBI sees loan expansion at the rate of 16-18 per cent this fiscal. “We are already at 17 per cent,” he said.

The RBI has also projected credit expansion target at 16-18 per cent for this fiscal.

Real Estate Scenario in India

Aadi Sharma
February 12, 2010

In spite of the recent ebb in the real estate scenario,
the Indian realty market holds the 9th position among the
retail markets of the world with a consistent growth of
 30% per annum. The favorable policies of the Indian government
is the major initiator of the realty boom. In fact, the real estate
 industry in India is recorded to be second largest employer after
agriculture.

Focus is especially on the various metros like Delhi
and NCR, Mumbai, Kolkata for developing projects ranging from residential,
 retail to commercial complexes.


Why Investing in Indian Realty Market ?


    * The boom in Indian economy. In the last financial year the economy
witnessed a considerable 8.1% increase. Due to the growth, the purchasing
power of the investors has increased causing a rise in the demand for realty properties.


    * It has been estimated that there would be around 2 million graduates
from various universities. Hence, creating demand for offices and industrial
 space of over 100 million square feet.


    * The new policies adopted by the Government of India regarding FDI
(foreign direct investments) encouraging various countries to invest in
 Indian properties.


    * The property investments in India yields large dividends.
As a result of which, about 70% of the investors are churning profit.


Indian Real Estate - Attractive Destination for FDI As already mentioned,
 the positive approach of the Indian Government is the major factor behind
the growth of the Indian real estate. The following is the list of the FDI
groups that have already made their mark in the Indian realty market.List of FDI


    * Emaar MGF - The developer has invested a mammoth amount of US$1 billion.
 It has the objective of developing pan-India projects ranging from residential,
 commercial, hospitality in integrated township and SEZ.


    * Keppel Land - The Singapore based group in association with a Bangalore
 based group has signed an agreement for developing residential and commercial
buildings in the Indian Silicon City.


    * DSP Merrill Lynch, Barclays Bank and Mauritius-based TH Holdings and Group
have so far invested Rs.11, 460 crore in the construction and realty sector.


The list of foreign direct investors also includes AEA Holdings, RREEF
(real estate investment wing of Deutsche Asset Management), Capital Land,
 Royal RaJ Indian, Morgan Stanley Real Estate Fund, IREO Investment Holding,
 Carrefour, Cayman Islands and many others. Some of the locations are often
termed as "temples of new or modern India", hence reflecting the extent of
property development in India.