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Nagpur Best place for Real Estate Investment

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  • Re : Nagpur Best place for Real Estate Investment

    Nagpur: HC rejects Armors residents plea for stay on demolition

    The residents rushed to HC after Nagpur Municipal Corporation’s (NMC) squad moved to their locality for razing part of their construction which took them closer to the deadly HT lines that had already claimed many lives. Vaibhav Ganjapure&Ashish Roy | TNN | September 17, 2019, 16:00 IST

    NAGPUR: Citing risk to humans staying under the vicinity of high tension (HT) lines, the Nagpur bench of Bombay high court on Monday rejected applications filed by Armors Township residents in Sugat Nagar for stay on the demolition of their illegal/unauthorized constructions.

    The residents rushed to HC after Nagpur Municipal Corporation’s (NMC) squad moved to their locality for razing part of their construction which took them closer to the deadly HT lines that had already claimed many lives.

    “If we entertain such requests, human lives would be put at risk. We can’t allow such dangerous construction, particularly in the rainy season. Their lives are more valuable than their homes as those can be reconstructed,” a division bench comprising justices Sunil Shukre and Milind Jadhav tersely said, while granting a go-ahead to the NMC to continue its action.

    As per HC’s directives to remove illegal constructions from over 3,600 houses that cropped in periphery of HT lines without sanctioned plans, the civic body served notices to Armors residents on Friday evening at 5 pm, asking them to raze those portions on their own or else it would do the job and recover the cost from them.

    Accordingly, some of the residents started razing the structures on their own with the help of labourers from early morning. About 11 of them preferred to move HC through counsel Shailesh Narnaware, praying for stay and arguing that alternate remedies are available like placing all HT cables underground or insulating them to prevent contact.

    NMC counsel Sudhir Puranik then instructed the officials to stop demolition work till HC’s orders on residents’ application. He informed that the residents were issued notices on July 17, after which five weeks were passed, but they did nothing and approached the HC at last moment. Agreeing with is contentions, the HC rejected their requests at around 4 pm, after which the NMC restarted their job.

    Earlier, the judges asked Narnaware to confirm on whether all 11 applicants had built their homes as per sanctioned map and there was no illegality or violation of Development Control Rules (DPR). They observed that basically, the residents have their grievance against the builder who mislead them and took them for a ride.

    “In such a scenario, we are of the view that the case should be moved in the civil court and not in HC. At the most they can get relief in terms of compensation from the erring builder for demolition, but those orders can’t be used for stalling the razing of illegal structures,” they clarified.

    The application was filed in PIL based on TOI reports on deaths of 11-year old twins Priyansh and Piyush Dhar and five-year old Umesh Pande due to electrocution from HT wires in June 2017. Shreerang Bhandarkar was appointed as amicus curiae.


    Earlier, the residents met energy minister Chandrashekhar Bawankule and asked him to make the HT line near their house underground. SNDL officials calculated the expenditure to be Rs 80 lakh. Bawankule promised to pay Rs 40 lakh and asked the residents to bear the remaining half. He told them that they would have to collect the amount within two to three days. Most of the residents were ready to pay just over Rs2 lakh to save their houses. But, five to six house owners refused apparently feeling that the NMC was issuing empty threats.

    Now, the residents want compensation from the builder Anand Khobragade. “He had told us while selling the houses that the HT line would be made underground within two months, but he fooled us. We will file a case in the court to make him pay us damages,” said Ishant Premchandani.

    Another resident Manish Sakhre objected to police personnel coming at night and threatening the residents. “They told us to demolish our houses or NMC would do it with machines, which would cause more damage,” he said.









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    • Re : Nagpur Best place for Real Estate Investment

      GST department recovers Rs 10.4 crore from six Nagpur, Nashik builders

      After action against builders, the Directorate General of Goods and Service Tax Intelligence (DGGSTI) has fixed liability of Rs 10.40 crore against six real estate companies, five from Nagpur and one in Nashik.Shishir Arya | TNN | September 20, 2019, 15:30 IST

      NAGPUR: After action against builders, the Directorate General of Goods and Service Tax Intelligence (DGGSTI) has fixed liability of Rs 10.40 crore against six real estate companies, five from Nagpur and one in Nashik.

      During the searches digital data was retrieved from the firms’ devices and compared with the physical copies of sale deeds filed at the registrar’s office. A discrepancy was found in the amount of GST liability discharged as against the price of the flats sold.

      Before flats came under 5% composition scheme, 12% GST was charged if the property was sold before the builder obtained an occupancy certificate. It was seen that despite not having got occupancy certificate, the 12% GST was not paid for a number of flats.

      The action covered M/s Green City Builders, M/s Kukreja Infrastructure, M/s Pardeshi Construction Private Limited, M/s Kukreja Embassy, and M/s JD Buildcon Private Limited from Nagpur, and M/s Sanklecha Construction Private Limited from Nashik.


      Tax to the tune of Rs 4.52 crore has been received from the firms. M/s Green City Builders paid Rs 58.17 lakh against liability of Rs 2 crore, M/s Pardeshi Construction paid Rs 15 lakh against Rs 1.35 crore, M/s Kukreja Embassy paid Rs 17.50 lakh (with ITC set off of Rs3.40 lakh against a liability of nearly Rs 4.86 crore) and M/s JD Buildcon paid Rs 21 lakh against a liability of Rs40 lakh, said a press release.









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      • Re : Nagpur Best place for Real Estate Investment

        Bombay HC quashes Akola civic body’s property tax policy

        The 2017 resolution resulted in property owners paying taxes multiple times their previous years’ dues and this ultimately led to an Akola resident filing a petition before the Nagpur bench of Bombay HC.TNN | Updated: October 10, 2019, 12:21 IST

        NAGPUR: In a major decision which is likely to have a state-wide impact, the high court on Wednesday quashed a 2017 resolution of the Akola Municipal Corporation (AMC) which determined the mode and manner in which property tax was to be assessed for a five-year period.

        The 2017 resolution resulted in property owners paying taxes multiple times their previous years’ dues and this ultimately led to an Akola resident filing a petition before the Nagpur bench of Bombay HC.

        Advocate Shreerang Bhandarkar, counsel for the petitioner, challenged the methodology by which AMC had arrived at new assessment values.

        In its 58-page judgement, the bench, presided by justice RK Deshpande and justice Vinay Joshi, noted that the resolution passed by AMC was “totally arbitrary, unreasonable and not based upon any valid relevant criteria”. The court also mentioned that AMC failed to “substantiate the fixation of annual rent in respect of the properties for residential and non-residential purposes on the basis of the provisions of the Act and the Rules”.

        The court questioned the process by AMC to collect information related to the annual rent separately for residential and non-residential premises. The order stated that “no efforts are made to determine the fair or standard rent for such properties. No material is collected to determine the annual letting value on the basis of the comparable properties in the municipal area”.

        The court also raised questions on a 2016 survey done by a private agency, on behalf of AMC, with one of the purpose being to determine whether a property has been let out or not.


        Regarding this the HC order states “the survey is conspicuously silent in respect of the amount of annual rent for which such property might reasonably be expected to let from year to year. There is no inquiry in respect of fair or standard rent of the properties”.

        However, there is no stay on the tax collection process. The court’s order mentions that AMC can “go ahead with the recovery of the said tax as a stopgap arrangement, subject to adjustment of the amount, if any, recovered in excess towards the recovery of tax, which shall be levied in accordance with law”.

        The court has now ordered AMC to start a fresh process for property tax assessment and complete the same within a year. If this deadline is breached, then property rates prevailing during 2002-2017 shall be collected till the new system is in place.













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        • Re : Nagpur Best place for Real Estate Investment

          Consumer forum slaps Rs 10 lakh fine on Nagpur's Pankaj Constructions

          Complainants Vidya and Shyam Baniya, a resident of Tanga Stand in Dharampeth, used to run a small shop in an old building.Vaibhav Ganjapure | TNN | November 05, 2019, 11:00 IST

          NAGPUR: Coming to the rescue of woman and her close relative, the Nagpur District Consumer Forum imposed a heavy cost of Rs 10 lakh on the builder for taking away her only means of survival and for physical and mental harassment. It is one of the biggest fines in the forums’ history, as per the lawyers practising there.

          A bench headed by president Shekhar Muley and members — Smita Chandekar and Avinash Prabhune — also ordered builder, Pankaj Constructions, through proprietor Pankaj Roshan Dhawan, to refund Rs 1.89 lakh, which they paid as down-payment with 12% interest from 2012. The builder was told to pay the entire amount within a month of the order or else, a surcharge of Rs 50 per day would be levied on him. The judges absolved of other respondents for lack of evidence against them.

          Complainants Vidya and Shyam Baniya, a resident of Tanga Stand in Dharampeth, used to run a small shop in an old building. The builder took over the scheme for redevelopment and assured to provide a 100sqft shop in his new scheme Gokul Roshan at Mouza Gadge. Complainants then entered into an agreement with the builder for a new shop on July 12, 2012. The deal was inked for Rs 7.56 lakh and complainants paid first instalment of Rs1.89 lakh while remaining amount of Rs 5.67 lakh was agreed to be given in instalment.

          Even after four to five years when the builder failed to lay any brick of his new scheme where he provided a shop to Baniya family, the latter started demanding their money back. When they investigated, they came to know that builder had failed to get the sanction from authorities to construct the building, as he failed to comply with the rules and regulations. They even sent notices to Dhawan and other respondents, demanding back their money, but he failed to respond.


          Left with no other alternative, the complainants knocked forum’s doors while seeking refund of their amount and demanding Rs4,000 per month compensation from the builder as agreed between both parties in their first agreement for purchase of shop.

          The builder replied that Baniya filed complaint after six years of inking of agreement in 2012 and hence, it couldn’t be entertained as per rules. He claimed that it was frivolous complaint as Baniya failed to pay rest of amount of Rs5.67 lakh after making down payment of Rs1.89 lakh.

          The judges rejected his arguments stating that builder adopted unethical practices while inking deal with the complainants and there was indeed “deficiency in service” on his part by not honouring commitment to provide a shop to them.











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          • Re : Nagpur Best place for Real Estate Investment

            NSSCDCL compensates owners after houses razed for Nagpur smart city project

            The monetary compensation will be deposited in the accounts of house owners in three installments.TNN | November 15, 2019, 16:30 IST

            NAGPUR: The Nagpur Smart and Sustainable City Develop Corporation Limited (NSSCDCL) has paid compensation to owners of houses which were razed in areas — Pardi, Bharatwada, Punapur and Bhandewadi — proposed under the Smart City project.

            Seven houses were affected near Bhavani Mata Mandir. Six of them were razed and the occupants shifted to rented accommodations. The rent will be paid by Nagpur Municipal Corporation (NMC). The compensation includes providing a developed plot having an area equal to 60% of the original plot and a house having equal area to the one demolished.

            The monetary compensation will be deposited in the accounts of house owners in three installments. The first installment will be deposited as soon as the owners sign a letter of agreement on a stamp paper and submit it to the NMC.

            The second installment will be deposited when the house is razed. The owners will get the third one when they submit a clear title document (NA document and city survey record). So far, Rs one crore has been deposited in the accounts of house owners.











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            • Re : Nagpur Best place for Real Estate Investment

              About 4.43 lakh people owe Rs 470 crore property tax to Nagpur civic body

              According to the data compiled by the department, property owners in Laxmi Nagar zone owe NMC more than Rs 107.19 crore.TNN | November 26, 2019, 19:00 IST

              NAGPUR: As many as 4.43 lakh Nagpurians collectively owe Nagpur Municipal Corporation Rs 470 crore towards property tax, reveals data compiled by NMC’s property tax department. The accumulated property tax dues were calculated for the last 10 years.

              In the last financial year (2018-19), of the 5.31 lakh property owners, only 3.22 lakh have paid property tax to the tune of Rs 198.26 crore.

              According to the data compiled by the department, property owners in Laxmi Nagar zone owe NMC more than Rs 107.19 crore.

              The highest number of property tax defaulters (79,222) is from Ashi Nagar zone, with Rs 65.98 crore dues. It is followed by Lakadganj zone (59,914), where such owners have collectively defaulted on Rs 64.86 crore. These owners haven’t paid tax for a period ranging between more than five to 10 years.

              Similarly, in Mangalwari zone, 44,192 property owners have not paid the tax and they too owe NMC Rs 55.88 crore. Dhantoli zone has lowest number of defaulters. It has around 7,760 property owners as defaulters and collectively their arrears amount to Rs 31.59 crore. Amount-wise, Gandhibagh zone has least tax dues where 11,579 property owners have not paid tax to the tune of Rs 9.41 crore.

              Sources in the NMC’s accounts and finance department admitted that the civic administration needs to improve property tax collection as it is a main source of revenue generation for the civic body.


              Assistant municipal commissioner Milind Meshram said the civic body has taken several initiatives to improve tax collection and giving ample opportunities to the defaulters to clear the dues.

              He also said that many property owners have defaulted on the tax after raising objections in the calculations, while many big defaulters have moved court against the department. The department needs to speed-up the process to settle such objections, he admitted and stated that the department has asked zone offices to accelerate such pending cases.

              To a query that the department is only auctioning properties of small tax defaulters, Meshram refuted the allegation stating that the civic body is focusing more on big defaulters.












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              • Re : Nagpur Best place for Real Estate Investment

                Stamp duty reduced by 0.5% in Nagpur

                An official from stamps and registration department said stamp duty is now 7% as against 7.5% with effect from December 1. “It has been done as per orders of stamps collector AS Ughde,” the official said.Anjaya Anparthi | TNN | December 07, 2019, 12:00 IST

                NAGPUR: In some relief for property buyers, builders and developers, the stamps and registration department has reduced stamp duty in the city by 0.5%, which was being recovered for Nagpur Improvement Trust (NIT) for the last 83 years.

                However, the decision is a major setback for the cash-strapped Nagpur Municipal Corporation (NMC), as it is yet to get the revenue from this even though it has taken over all areas of NIT.

                An official from stamps and registration department said stamp duty is now 7% as against 7.5% with effect from December 1. “It has been done as per orders of stamps collector AS Ughde,” the official said.

                In a letter, Ughde said, “There was provision in section 77 of the NIT Act 1936 for recovering 0.5% stamp duty from all transactions in areas coming under NIT’s jurisdiction. The state government through a notification dated August 27 had handed over all NIT areas, especially seven schemes, to NMC. Thus, NIT has no areas under its jurisdiction. Therefore, the stamp duty being recovered for NIT needs to be stopped.”

                The stamps and registration department used to collect 0.5% stamp duty from all transactions across the city and hand it over to NIT. After some court orders, the department started to recover stamp duty from areas under NIT jurisdiction only. NIT used to get around Rs 12.50 crore per annum.

                The reduction in stamp duty is good news for property buyers, builders and developers, as it was one of the highest in the state.


                The government had handed over all areas of NIT to NMC with effect from August 27, as per provisions in NIT Act. Areas transferred by NIT to NMC are mostly unauthorized and under-developed. This is being seen as a big financial burden on NMC, which is already reeling under a financial crisis. But the civic body has not got the stamp duty collected for NIT.

                Municipal commissioner Abhijit Bangar told TOI he would pursue the issue with the government. “I will have to check under which provision NIT was getting stamp duty, and whether it can be transferred to NMC. If possible, we will leave no effort to get it as we need new revenue source especially for areas taken over from NIT,” he said.

                NMC is also getting stamp duty of 1% since abolition of octroi in April 2013.

                Basic stamp duty is 5% of total value of property. The government had imposed 0.5% stamp duty for NIT, another 1% for NMC and another 1% for Metro Rail Project. Thus, stamp duty in the city was 7.5%.











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                • Re : Nagpur Best place for Real Estate Investment

                  Rainwater harvesting likely to be must for buildings of various institutions in Nagpur

                  The committee was constituted by mayor Sandip Joshi after taking cognisance of the water scarcity that prevailed during last summer and early days of monsoon.Anjaya Anparthi | TNN | December 09, 2019, 16:30 IST

                  NAGPUR: The Nagpur Municipal Corporation (NMC) is likely to make rainwater harvesting mandatory for all buildings owned and run by institutions. It is the first step proposed by the Rainwater Harvesting Committee.

                  The committee was constituted by mayor Sandip Joshi after taking cognisance of the water scarcity that prevailed during last summer and early days of monsoon. The committee held a meeting at the NMC head office a couple of days ago.

                  Committee members Abhay Gotekar, chairman of projects consultative committee, Vijay Zalke, chairman of water works consultative committee, superintending engineers Manoj Talewar (NMC), PP Dhankar (NIT), executive engineer Shweta Banerjee, assistant director of town planning Pramod Gawande, architect Ashok Mokha, geologists Varsha Mane, RK Deshkar, teacher Rohit Deshpande and others were present.

                  The committee directed the NMC officials to prepare administrative provisions to make rainwater harvesting mandatory for all buildings run by government departments, educational institutions, hospitals and private organizations.

                  The committee also decided to chalk out plans for public awareness and implementation of rainwater harvesting system in other buildings in a phased manner.











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                  • Re : Nagpur Best place for Real Estate Investment

                    HC directs Nagpur civic body to conduct survey of buildings without parking areas

                    Before scheduling the next hearing on December 19, the bench also asked NMC commissioner Abhijit Bangar to submit the compliance report of 14 buildings which failed to provide parking.Vaibhav Ganjapure | TNN | Updated: December 10, 2019, 16:29 IST

                    NAGPUR: Questioning the Nagpur Municipal Corporation (NMC) on the basis of its survey of 787 buildings in the city, the Nagpur bench of Bombay high court on Monday directed it to conduct a fresh survey in congested areas like Dhantoli which lack adequate parking facilities.

                    A division bench comprising justices Sunil Shukre and Rohit Deo instructed the civic body to give priority to establishments like coaching classes, restaurants and hospitals during the new survey and submit the report within a month.

                    Before scheduling the next hearing on December 19, the bench also asked NMC commissioner Abhijit Bangar to submit the compliance report of 14 buildings which failed to provide parking. The buildings would be demolished.

                    Bangar was present in court after being summoned for inaction by authorities in solving the parking and congestion problems in Dhantoli since years.

                    The court was hearing a fresh PIL (No. 52/2017) by aggrieved citizens of Dhantoli Nagrik Mandal through counsels Ashutosh Dharmadhikari and Ashwin Deshpande over parking problems faced by residents due to a large number of hospitals that have cropped up in the area. The hospitals have misused space meant for parking by opening canteens and other services at basements.

                    In his affidavit filed through counsel Sudhir Puranik, the NMC chief informed the court that as many as 65 slums with multi-storey buildings in congested and commercial areas of the city were notified by the Maharashtra Housing and Area Development Authority (MHADA) as per the HC’s judgment in 2012 in the Manohar Bhadad versus Madhuri Walokar case where the civic body was restrained from taking action pertaining to demolition of such property.

                    After the HC’s directives, the NMC filed an affidavit on February 12, 2016, stating that 576 buildings in all the ten zones were surveyed of which 408 were found with proper parking space in accordance with the sanctioned plan.

                    In 148 buildings, illegal construction/encroachment in the parking area was found. Unauthorize construction was removed from 131 structures. The NMC had directed every zone to constitute a special squad for demolition of unauthorized constructions. The panel comprised PWD’s deputy engineer as its head. The other members of the panel were the junior engineer, civil engineering assistant and sanitary inspector.

                    The NMC chief pointed out that there were two planning authorities — NMC and NIT — and that the HC had directed both authorities to comply with its directives. “The buildings within the NMC’s jurisdiction are inspected on a regular basis. Notices were issued to those occupying parking space,” he said.

                    In the last hearing, the HC censured the civic body for only issuing notices to offenders who occupy parking space for other means in blatant violation of norms. The petitioners are praying for ending the menace of commercial establishments in Dhantoli which was once renowned as a locality of the ‘rich and famous’. Now, it has completely turned into a concrete jungle after many hospitals, coaching classes and food joints cropped up in the area, primarily because of permission granted by the NMC without verification.


                    A majority of them have gobbled up the parking space and are using it for other purposes in gross violation of norms.

                    Many hotels lack parking space

                    The petitioner pointed out the absence of stipulated parking places at popular eateries on the stretch from Panchasheel Talkies to Mehadia Square. As a result of this mess, there is severe congestion and frequent traffic jams throughout the day.

                    His counsels orally named Ganesh Sagar and other popular food joints that are operating from the basement of various commercial complexes which don’t have parking space for the vehicles. The petitioner also highlighted the fact that due to the NMC bus depot operating from Patwardhan ground and a private depot of buses going to the Madhya Pradesh, there is total chaos in the area, particularly during office hours and in the evening. The Dhantoli Mandal prayed for directives to the NMC to take pro-active steps for easing the flow of traffic from the entire area.










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                    • Re : Nagpur Best place for Real Estate Investment

                      Over 90 flat owners face eviction as Nagpur civic body officials 'flout norms'

                      NMC officials had even approved the revised building plan and issued occupancy certificate (OC) to the building named Garden Enclave without fire NOC and compliance.Anjaya Anparthi | TNN | January 04, 2020, 15:00 IST

                      NAGPUR: The Nagpur Municipal Corporation (NMC) Fire and Emergency Services Department has declared as unsafe a residential building at Ganeshpeth and directed its 96 flat owners to vacate it, following alleged irregularities committed by the civic officials and the builder.

                      Interestingly, NMC officials had even approved the revised building plan and issued occupancy certificate (OC) to the building named Garden Enclave without fire NOC and compliance.

                      The alleged irregularities came to fore after one of the flat owners, Laxmikant Murarka, obtained documents from NMC under the RTI Act. “Fire department on August 10, 2018, issued a notice declaring all flats unsafe and directed occupants to vacate the them immediately. The flat owners’ association requested builder to ensure all permissions from fire department but to no avail,” he said.

                      According to Murarka, the builder has not installed any fire system. “Also, the builder has done unauthorized construction. Despite the issues being related to builder, the flat owners are collecting money and doing whatever they can to avoid any risk to their families and lessen impact of fire department’s action,” he said.

                      Additional chief fire officer BP Chandankhede told TOI that as on date the flat scheme lacks fire compliance. “Further action like disconnection of water and power supply or registration of FIR has not been taken as flat owners have assured mandatory fire systems will be installed and compliance of directives,” he said.

                      Documents obtained under RTI revealed that the NMC Dhantoli Zone issued OC to the flat scheme on May 17, 2012. It’s an irregularity if OC is issued in absence of fire compliance certificate.

                      A fire department’s letter dated June 12, 2018 — also obtained under RTI Act — to the builder Suhasini Realty revealed that NMC town planning department approved revised building plan without revised NOC from fire department. “Fire NOC was issued to two wings of the scheme on March 29, 2008. Town planning department approved building on July 18, 2009. Revised building plan was approved on April 30, 2012, but without revised fire NOC. It is a very serious issue,” the letter stated.

                      Murarka said fire department should register FIR against builder like in other cases. “Builder would have installed fire systems and obtained fire compliance had the town planning department and Dhantoli zone made it mandatory as per norms. Fire department is not taking any action against builder. Also, despite complaints NMC higher-ups are not taking any action against officials of town planning department and NMC Dhantoli Zone,” he said.

                      Earlier, Murarka had exposed some serious irregularities by NMC officials, builder and architect. Following his complaint, Lakadganj zone had registered an offence against 13 NMC officials, representatives of builder and architect on April 11, 2018. The police is investigating the case and yet to submit chargesheet.

                      Lalitkumar Lohia from Suhasini Realiy has filed criminal application in Nagpur bench of Bombay High Court for quashing the FIR. The HC has scheduled next hearing on January 9.

                      Lohia denied allegations of irregularities by the firm and NMC. “We have the fire NOC and compliance certificate. OC was issued after getting fire compliance. We formed an association and handed over the scheme to it four years ago. All, except Murarka, have no complaints,” he alleged.











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