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Gujarat Real Estate Updates

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  • Re : Gujarat Real Estate Updates

    Soon, rent affordable home from civic bodies in Gujarat

    State to offer houses with affordable rentals; tenders issued in A’bad, G’nagar; already underway in Surat
    AHMEDABAD: The state government is poised to start a new housing scheme in which affordable units belonging to the municipal corporations will be given on rent to occupants. The scheme is set to be launched in Ahmedabad city and district, Gandhinagar city and district and Vadodara city soon and necessary tenders have been issued. It is already under way in Surat.

    The government’s Affordable Rental Housing Complexes (ARHC) scheme, a central government initiative, will be executed on a public-private partnership (PPP) basis to private entities on a 25-year lease, who will offer houses at low rental charges to members of economically weaker sections (EWSs) and students.

    Civic body leases to developers

    The ARHC will be executed on two models –Model 1 format will consist of vacant houses owned by the local authorities like AMC and SUDA which will be given to private players to run, maintain and give out on rent. Model 2 will require the developer/ party to construct the dwellings with their investment on land and construction and then rent and manage the properties. Since the burden of investment is on developers, Model-2 format will allow 50% extra FSI (Floor Space Index) to reduce the overall construction cost.
    We have got inquiries for 1,000 houses in Ahmedabad, Surat and Vadodara. We are hopeful that the facilities will be operational soon in these citiesLochan Sehra, Secretary (Housing & Nirmal Gujarat), Urban Development & Urban Housing
    Model -1 format is gaining more traction among developers, with the authorities beginning to get bids for the tenders. Model 2, however, has seen a lukewarm response and is yet to attract bidders.

    Surat Urban Development Authority has executed its first project under the ARHC scheme which will get operational soon, officials said. SUDA chairman and SMC commissioner Banchhanidhi Pani said, “This is the first project in India under ARHC scheme. We are looking forward to having projects in the city limits too, both under Model-1 and 2.” Civic authorities in Ahmedabad and Vadodara have also issued tenders for housing projects .

    AMC floats tenders

    The Ahmedabad Municipal Corporation (AMC) has floated two tenders under Model 1.However, the technical bid evaluation is in progress and it is yet to award the contracts. AMC commissioner Mukesh Kumar said, “Two companies have registered for the tender for a total 1,376 houses, of which 352 houses will be built in Thaltej and 1,024 in Bodakdev.”

    Sources privy to the development said there has not been much response from developers for the Model 2.

    Therefore, the period has been extended till March 2021. Developers feel Model 2 may not be very attractive as the cost of the project will turn out to be much higher than the returns they can expect in the ‘affordable rental’ scheme.

    Leasing option better, constructing unviable

    ANREDCO president Suresh Patel said, “Model 1 may click with the bidders, but Model 2 doesn’t look viable as the cost of the land is very high and so is the construction cost as against the returns expected.”

    Some realty experts suggested that the government should get into joint ventures by offering reserved land to developers for such projects and offer 100% FSI for free.However, the affordable rental scheme is expected to do well in industrial areas like Sanand, Kalol and Santej.











    Soon, rent affordable home from civic bodies in Gujarat, Real Estate News, ET RealEstate (indiatimes.com)



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    • Re : Gujarat Real Estate Updates

      About 58,000 buildings in Gujarat without fire NOC: Government to HC

      The affidavit also revealed that there are total 33,274 buildings in the state which do not have BU permissions. Of them, 25,910 buildings exist in municipalities; 1,489 structures in Ahmedabad Municipal Corporation (AMC); 2,335 in Surat civic body area; 1,009 in Vadodara and 1,640 in Rajkot city.
      AHMEDABAD: The state government on Wednesday informed the Gujarat high court about buildings without mandatory fire NOC and Building Use (BU) permission and the numbers were shocking.

      Despite repeated directions issued by the high court in last two decades, and various legislations in place to ensure fire safety, the deputy secretary of urban development and urban housing department, R H Vasava, stated on an affidavit that there are as many as 58,000 buildings across the state which do not have valid fire NOC as on date.

      These buildings either do not have proper fire prevention and protection systems installed, or they have not renewed their fire NOCs if obtained in the past after installation of fire safety systems.

      The affidavit also revealed that there are total 33,274 buildings in the state which do not have BU permissions. Of them, 25,910 buildings exist in municipalities; 1,489 structures in Ahmedabad Municipal Corporation (AMC); 2,335 in Surat civic body area; 1,009 in Vadodara and 1,640 in Rajkot city.

      The state government placed these details before the HC in response to a PIL filed by advocate Amit Panchal, who has sought action against those responsible for the fire tragedy in the Shrey Hospital, in which eight Covid-19 patients had lost their lives in August last year.

      The lawyer had also demanded proper implementation of the fire safety laws. The government had also expressed its intention to amend the newly implemented Fire Safety Act.

      Following this litigation, the high court had been directing the civic authorities to strictly implement fire safety norms in hospitals and even issued guidelines for ICUs in Covid hospitals. The government’s report said that the city of Ahmedabad has fared well with only six hospitals still to obtain fire NOC, and all the schools in the city have obtained fire NOC. But the city still has got 15,317 factories and industrial units without fire NOC. This is after some major fire incidents reported in industrial areas around the city.










      About 58,000 buildings in Gujarat without fire NOC: Government to HC, Real Estate News, ET RealEstate (indiatimes.com)
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      • Re : Gujarat Real Estate Updates

        Did RERA violate Gujarat HC guidelines by conducting physical hearings?

        The real estate regulator is calling litigants for in-person hearings in breach of HC guidelines, while all other courts in the land are conducting only virtual/online hearings, claims lawyer and RERA practitioner
        AHMEDABAD: Can RERA (Real Estate Appellate Authority) call litigants for physical appearance and conduct in-person hearings in times of Covid when all courts, including Gujarat High Court, have adopted the virtual method of functioning?

        Also, does an appellate forum, which RERA is, even need the physical presence of litigants when cases are only dealt with on the basis of documents and lawyer arguments? These questions have been posed by an advocate on the basis of answers to RTI applications, raising issues relating to violation of HC guidelines.

        19 physical hearings: RTI reply

        In response to RTI queries, RERA provided details that it did indeed conduct some physical hearings -- 19 cases in all between July 1, 2020 to January 10 this year. This was the period when all litigation in lower courts and appellate forums was conducted virtual/online exclusively. So how did RERA become an exception and an outlier?

        The lawyer who filed the RTI plea has claimed that the real estate regulator violated the directions issued by the Gujarat High Court in doing so. The regulator, for its part, claims it conducted the hearings well within the bounds of law and guidelines issued by the state government.

        Changing from virtual on March 1

        For context, no physical hearings have resumed in any court in the state till date. Courts in Ahmedabad and other big cities will start functioning physically only from March 1, in keeping with HC orders.

        Advocate and RERA practitioner Nipun Singhvi had filed a PIL in March last year – soon after physical hearings were stopped by HC in wake of the Covid pandemic -- against conducting physical hearing by the RERA Tribunal and RERA. He had also sought implementation of safety guidelines issued by the state government.

        “The state government had assured the Gujarat HC that RERA and its tribunal will follow the guidelines on virtual hearings issued by the court. The HC had issued the guidelines first on March 13, and subsequently revised it from time to time,” Singhvi told Mirror.

        RERA not a trial court

        He said, “Besides, RERA courts are not trial courts where physical appearance is mandatory. They are governed by summary proceedings. More so, they have to go by documents.

        In fact, the Supreme Court has indicated that E-courts (non-physical) will be soon implemented. In such a situation, when the HC order still holds good and we will be moving to E-courts, it is surprising that RERA wants physical appearance of litigants. I know from personal knowledge and from RTI queries that it had called parties in-person in some of the matters.”

        As things stand, the SC, all High Courts, NCLT, the DRT etc. have not yet started physical hearings over Covid apprehensions. However, Singhvi said, “RERA continues to hold physical hearings for reasons best known to it. Normally, home buyers who approach the real estate regulatory body for dispute resolution come there in groups, and therefore chances of virus spread are high.

        During the course of hearing in one of the cases, we had submitted that physical hearings should not be conducted. We also referred to the HC order in the PIL I had filed in March 2020 wherein the State had assured to follow Covid safety guidelines.”

        RERA explains its position

        RERA’s head of legal department, Asit Upadhyay, said, “The lawyer who had filed the RTI has misinterpreted the order issued by the Gujarat High Court. We are not gathering any crowds and are maintaining social distancing while conducting the hearings.”












        Did RERA violate Gujarat HC guidelines by conducting physical hearings?, Real Estate News, ET RealEstate (indiatimes.com)
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        • Re : Gujarat Real Estate Updates

          Why did Ahmedabad grow on periphery?

          In the 1980s and 1990s the report states, the city rapidly expanded beyond the municipal corporation limits, leading to fragmented urban expansion, particularly along the western fringes of the city.
          AHMEDABAD: Just why did Ahmedabad expand in the periphery? A new World Bank report traces the history of the city’s expansion to the development plan of 1965 when a 240 metres wide area on private agricultural land covering an area of 8.4 sq km was proposed in the new plan.

          This was the year when the total municipal area of the city was 93 sq km. Today, the urban agglomerate area of the city, including AUDA area, is around 1,900 sq km with a green belt covering 9% of the total land cover.

          “The main objective of the green belt was to restrict urban sprawl and regulate and balance open versus built development and act as a sink for urban pollution,” claims the paper authored by Madhu Bharti and Shagun Mehrotra.

          But this proposal met with resistance as land owners were unhappy with AMC’s compensation and challenged the plan in the court.

          In the 1980s and 1990s the report states, the city rapidly expanded beyond the municipal corporation limits, leading to fragmented urban expansion, particularly along the western fringes of the city.

          “This fragmented development outside the city limits was partly attributed to the Urban Land Ceiling Act, 1976, which led to an artificial increase in land prices within the city limits.

          “Over time, many encroached on these green belt reserves to build houses,” states the WB paper.

          The Sardar Patel Ring Road was conceptualized in the 2001 revised development plan to facilitate integrated urban development along the metropolitan periphery of Ahmedabad.











          Why did Ahmedabad grow on periphery?, Real Estate News, ET RealEstate (indiatimes.com)

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          • Re : Gujarat Real Estate Updates

            Housing scheme for labourers to be launched on PPP basis in Gujarat

            The announcement comes after an unprecedented migration of labourers to their home states soon after the lockdown was announced last year. Migration of workers had crippled production at industrial units in the state.
            • TNN
            • March 04, 2021, 14:00 IST

            GANDHINAGAR: Waking up to the need of housing for labourers, the state government on Wednesday announced that a scheme will be launched for providing housing to labourers near their factories.

            The announcement comes after an unprecedented migration of labourers to their home states soon after the lockdown was announced last year. Migration of workers had crippled production at industrial units in the state.

            “In order to ensure that the labourers get their dwellings nearby the factories where they work, our government is going to launch Mukhyamantri Audyogik Shramyogi Ane Industrial Housing Aawas (MASIHA) scheme,” Nitin Patel, deputy chief minister who also holds the finance portfolio, said while presenting the state budget for 2021-22.

            Under the scheme, housing for labours will be constructed at concessional rate on the public-private partnership (PPP) basis. The state budget made a total provision of Rs 1,502 crore for the labour and employment department.














            Housing scheme for labourers to be launched on PPP basis in Gujarat, Real Estate News, ET RealEstate (indiatimes.com)
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