Rajya Sabha approves Real Estate Bill
New Delhi : The Real Estate Bill, proposing a Real Estate Regulatory Authority, was on Thursday approved by India's upper house of parliament after the government accepted as many as 20 amendments to the measure as proposed by a Rajya Sabha Select Committee.
The Bill, pending before parliament since 2013, aims to protect the interests of property buyers from unscrupulous promoters and regulate the real estate sector.
The legislative measure will now go to the Lok Sabha for its approval. 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.



Hemen Parekh

1 year ago

Thanks , Shri Naidu !
A few days back , Parliament passed a bill to regulate the Real Estate Industry
On 04 Nov 2015 ,I sent to Shri Venkaiah Naidu ( [email protected] ) , an email containing following suggestions
Some of these have been incorporated in the new Act .
Thank you , Shri Naidu for listening !
E-Delivery of Services to Construction Industry

Here is how :

* All builders / developers must register on Municipal Web sites and obtain

* Builders must fill in online, on web site of concerned Municipality, a form :


* Building Permit Application Form will have a STANDARD FORMAT , into
which applicant will need to submit exhaustive details re the project

This will include detailed Floor Plans and Structural Drawings , along with
names / contact details of Architects / Structural Engineers etc

The FORM will require slab-casting dates for each slab and the final
completion date when builder will apply for Occupation Certificate

* The Form will have a section called


Builder would be required to tick YES / NO against each item as shown :

Does your proposed Building / Structure / Project , satisfy the criteria /
notifications / regulations , issued by the concerned Ministries in respect
of :

# Built-up Area........... ( YES ) / ( NO )

# Height Restriction

# Fire Fighting

# Water Harvesting

# Roof-top Solar Power

# Effluent Treatment

# Garbage Disposal

# Earthquake Resistant Structural Design..............etc

Clicking on each item will reveal the relevant " Notification / Regulation " issued by the concerned Ministry

To make the process absolutely fool-proof , the form will insist on an " Electronic Signature " of the applicant


" I declare that I have read each and every notification / regulation , listed in respect of items mentioned above

I further declare that I explicitly agree to abide by these regulations

I am aware that Occupation Certificate will not be granted if my completed project is found to be in violation of any of these notifications / regulations

I will not allow any person / entity to occupy any part of this premises , until and unless , Municipality issues to me , the Occupation Certificate

If Municipality finds any violations , I agree to rectify the same before applying for a fresh Occupation Certificate

If Municipality is not in a position to issue Occupation Certificate due to any
violations which simply cannot be rectified , then I will demolish the said building / project / structure on my own and before such demolition , refund with interest , payments collected from the buyers

The plot of land is free from any encumbrances / litigations

I am not in default of any loans taken from any bank / individuals

I will not accept any payment in cash , nor make cash payments

I absolve the Municipal Corporation of any liability arising out of non completion of my project

I agree that my Building Permit Application and my Registration Application details , be made accessible to public on your web site , along with full details of my past / current projects and full details of my balance sheet / bank borrowings "


As soon as the builder submits the online BUILDING PERMIT APPLICATION , it automatically and instantly , appears on the web sites of ALL the concerned Ministries

The concerned officer of each Ministry , makes APPROVED / REJECTED entries in the application form , from the backend

If rejected , he will provide the reasons

Ministry officers are required to carry out this entry , within 24 hours

As soon as an officer of any Ministry makes entry and SUBMITS , the application forms on web sites of ALL Ministries and web site of the concerned Municipality , get updated simultaneously and instantly , making for MIRROR IMAGES at all times

As soon as any entry is made , a copy gets emailed to the applicant builder

Any " editing " of the application form by the builder , will start the entire process , all over

Applicant builder will be obliged to display the latest emailed form at the site

The database so created on web sites of ALL Ministries - and concerned Municipality - will be searchable State-wise / City-wise


To speed up any litigation between the parties concerned ( Builder / Buyers / Central & State Govts / Municipality / Bankers etc ) , existing laws may be changed


Every application must be in the open domain and visible to anyone , online and transparently

There should be provision for any visitor of the web site to report any abuse / violation of regulations or any objection to the proposed construction


If such SELF CERTIFICATION process is implemented , it should be possible for India to beat Singapore , where getting 11 approval takes only 26 days !

It would be ZERO days in our case !

Now couple this with abolition of Corporate Income Tax for Construction Industry for the next 10 years and witness a MIRACLE

------------------------------------------------------------------------------------- / blogs
15 March 2016

Work from home, lottery scams biggest online scams in India: Survey
New Delhi : The top three online scams in India are work from home, lottery scams and fake bank email scam, says a new multi-market survey, adding that despite the growing awareness, new online scams are being reported every day.
Releasing an “Internet Scams” study on Thursday, Norway-based Telenor Group, Telenor India’s major shareholder, said that as internet accessibility in India continues to expand, so do scammers' inventive ways in infiltrating consumers’ personal information. 
“As Indian netizens, we know that scams exist but to see that the highest amount of money stolen via scams is in India shows this is an area we need to address. As a leader in telecommunications, Telenor India is dedicated to enhancing internet safety,” said Sharad Mehrotra, CEO Telenor India, in a statement.
The “work from home” is a scam whereby users are either fooled into paying someone online to help them start a business, or users are tricked into completing work on their computer but never receive payment. 
One quarter of the participants had been victim of lottery scam emails, where the user is prompted to pay a processing fee in order to win a large sum of money and a further 17 percent had been victim to fraud from scammers pretending to be their bank to acquire personal information and funds, the results showed.
“We hope that the findings from this digital consumer study will encourage all of us to take preventative measures to stay safe online,” Mehrotra added. 
The multi-market survey assessed the impact of scams on 400 internet users aged 18- 65 plus in India Singapore, Thailand and Malaysia.
Regionally, the average financial loss per person is Rs.681,070 but alarmingly in India, the average loss was Rs.819,000.
The survey revealed that 85 percent of India’s internet users are familiar with the term "Internet Scam" and feel open to online threats.
“Online security is extremely relevant in India where over one third of internet users surveyed have been victim to an internet scam and a further 57 percent know a friend or family member who has been scammed online,” the findings showed. 
Half of internet users surveyed in India feel that responsibility to protect people online is with the government while nearly 60 percent feel the responsibility lies with the website.
A jail term for scammers is the best preventative measure to avoid an increasing online threat, they added.
However, overall more than 80 percent of respondents feel it is the responsibility of each individual to ensure they’re safe online. 
"Telenor is working closely with GSMA (a body that represents the interests of mobile operators worldwide) to launch 'Mobile Connect' to preserve online privacy, create a trusted environment and help mitigate the vulnerability of online passwords,” Mehrotra informed. 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


Budget provision on ARCs won’t reduce bank NPAs
Many infrastructure loans are viable only at steep 50-70% haircuts. Banks are unwilling to take such a massive hit on profitability by selling down to ARCs, says a report. Hence, the budget provision of getting FDI into ARCs won’t work
In his third Budget, Finance Minister Arun Jaitley had announced 100% foreign direct investment (FDI) in asset reconstruction companies (ARCs) and similar foreign portfolio investment (FPI) in security receipts used in the transactions besides providing a better tax clarity. While these steps are long term positive for ARCs, it will not ease asset quality woes of banks sitting on a huge mountain of non-performing assets (NPAs), says a research note. 
In the report, Religare Capital Markets Ltd, says, "We met three large ARCs operating in India to assess the impact of regulatory changes proposed in the Union Budget. ARCs are unwilling to buy large loans given the concentration risk and uncertainty with respect to timing and extent of recovery. Differential valuations are also hurting sell-downs."
The budget proposes that sponsors be allowed to own 100% in ARCs as against 50% earlier. This will improve the credit rating of ARCs, in turn bringing down their cost of funds and enabling higher leverage. Also, foreign investors (mainly debt) will be allowed to own security receipts (SR) of ARCs, helping the latter diversify fund sources. "In all, the proposed changes (see table at right) are expected to address ARCs’ capital needs, but we believe the impact will be seen over the longer term. Thus, medium-term pain on the NPA front will continue for banks," the report says.
However, Religare Capital Markets feel that the capital constraints of ARCs are unlikely to ease in a hurry. It says, two key changes like allowing the sponsor own 100% in ARCs and allowing FPIs to own SRs, will need amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act where the support of opposition parties is critical. "As per our meetings, the combined net worth of all ARCs is about Rs3,500 crore and assets managed around Rs40,000 crore. Many conservative ARCs are operating at low leverage and do not wish to increase this," it says.
"Sponsor capital will only flow after changes to the SARFAESI Act," the report pointed out, adding, "ARCs do not have the scale to buy out lenders in large companies in steel and infrastructure. They argue that buying small stakes from one or two lenders will not help, as recovery or implementation of the restructuring package becomes difficult with a minority stake."
According to Religare Capital Markets, India’s ARC model is best suited for retail, small and medium-sized enterprises (SME) and mid-size corporates where legal issues are more manageable and the recovery amount and timeline largely predictable. In contrast, large corporates have complex legal issues and the timing or extent of recovery is uncertain. Most large companies have cross guarantees for group entities and unfunded exposures that are difficult to assess. Working capital funding for revival is also a problem given the large amounts involved, even as finding a suitable buyer (bank) for the debt post-turnaround may be hard. For ARCs, a delay in recovery by even a year can materially impact return ratios, it says.
There is a wide valuation differential for infrastructure loans and so far, there have been very few ARC deals in the infrastructure space where asset quality stress is the highest. Many infrastructure loans are standard or restructured (provision cover of 5%) in the books of banks. As these loans are viable only at steep 50-70% haircuts, banks are unwilling to take such a massive hit on profitability by selling down to ARCs.
Religare Capital Markets feels that the transition to without-recourse model a distant dream in India. It says, "ARCs are of the view that under the existing 15:85 structure, they can generate an ROE of 18-20% if they are able to recover 25-30% of the debt over and above the actual amount paid by them to banks. Valuation is a contentious issue for without-recourse (all-cash) buyouts. ARCs are willing to pay half the price for a cash deal as compared to 15:85 structures, whereas banks are reluctant to sell assets at very low valuations." 
While remain underweight on the sector, the reports states that corporate lenders are in its avoid list and it prefer playing the sector through private retail banks.



Sunil Rebello

1 year ago

Budget provision on ARCs won’t reduce bank NPAs.
why should we pay more TAX?


1 year ago


Link to look-up:


1 year ago

May you be Invited to look up : (writer, a Rajya Sabha MP)

Among several suggestions as given vent therein, 'swayam' by a MP, the one that may deserve some in-depth consideration is as stated under: “There is also a need to create a public asset reconstruction company (ARC) which will allow banks to focus on lending, rather than recovery of stressed assets. Consolidation of bad loans can simplify resolutions. It has been seen that consortiums currently make things complicated. A public ARC made by political will and backing and with the support of the RBI can lead to faster resolution of NPAs.”

As underlined, however, "tax-payers are the ones left holding the NPA bill. Hence, a PSU clean-up is a matter of public concern."

With that in critical focus, as the problem itself pertains to mainly banks in public sector, how well the idea of creating another public sector entity i.e. a PARC will be kindly taken, or be largely acceptable, as a matter of prudence, also be gone ahead with against abundant caution, is a big daunting question; not so easy to be pressed forth, to find favour, with enough courage of conviction to be acted upon.

Of contextual relevance hence calling for a mention, at least in passing, is the, “3Rs”; which has correlation to elementary education, but having been neglected in formative years, that has boomeranged. The result is that newer and newer ideas, though not backed-up by any homework, worthy of any serious thought, have come to be floated around.

One such idea, it is noted, figures in the latest economic survey report; strangely, with one more ‘r’ added, it is styled as, - 4R solution, set of, - “recognition,recapitalisation, resolution and reform”. But there is no knowing whether those (4Rs), prima facie abstract concepts, have been adequately elaborated, with sufficient clarity, in order to easily follow, in an attempt to have anyone or more of those effected / implemented, to the end of a reasonably successful outcome.


1 year ago

It is the experience of PSBs that ARCs is another area where public assets are sold for peanuts. Even though the NPA is backed by Assets like mortgage of property, the ARCs would not take unless you offer them a 60% to 80% discount of the upset price of the property. Here those corrupt officials at the top make a deal and sell it on the plea that today's Rs.2/- is better than tomorrow's Rs.10/-. It is only the private ARCs make profit at the cost of PSBs. If the PSBs can identify and lend money to the borrower, the onus of recovery should be on them. ARC is not a remedy for the problem of bulging NPAs.



1 year ago

Response (in all humility,to share a poser (albeit not an answer anyway):

“ will not ease asset quality woes of banks sitting on a huge mountain of non-performing assets (NPAs), says a research note. “

Having boldly ventured a guesstimate, with no painful time-consuming research of any kind needed, why not, instead of a ‘cut’, make it easy, with a clean shave of 100%; obviously, that should not matter much, for anyone concerned or unconcerned – will it ?

B. Yerram Raju

1 year ago

The skill sets of ARCs to recover better than the legatee institutions are no different. Second, legal provisions do not provide for any specific leverage for the ARCs. Ever since these institutions came into being they did not evoke greater confidence than the parents as the quality of underlying assets and their valuations are highly suspect. FDIs have their preferred routes for investment in a growing economy other than the assets that came under pressure due to government interference at the credit origination points.


1 year ago

To find buyers for proven non bankable assets assumes that there are as many junk bond buyers as salesmen, It is a matter of demand and supply. I am surprised that there are takers at 50 to 70% hair cuts. Surely the profligacy and corruption of the Indian State since sixty years would have seen the value of Bank Assets follow the same trajectory as the Rupee as a function of M-2 (Money with the Public and the Banking System)? This would mean an average of more than 80 to 90 per cent.

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