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How Real Estate Regulatory Bill can help ailing Real Estate sector

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Real Estate
Photo: http://www.businessinsider.in

Construction and Real Estate sectors have a bad name today, due to many unethical builders, brokers, extortionists, and land mafia, who have controlled the sector for a long time now.

NewsGram had previously covered one such instance of alleged extortion and unnecessary delay in handing over the flats to the customers in Mumbai by Runwal Greens.

The Real Estate Regulatory Bill, which has been pending for a long time, if passed, may go a long way in tackling various issues that ails this sector. Here is an article by Anil Pharande, Chairman of Pharande Spaces, a leading construction and development firm in Western Pune, explaining why the Bill is very crucial for cleaning up the Real Estate sector.

The Real Estate Regulatory Bill has been waiting for a long time to be passed as a law. Though several new recommendations by various bodies were incorporated into the draft Bill and approved by the cabinet, it has still not been passed as an enforceable law by the Parliament. It is now high time that this happens – for several reasons.

The changes which have been made in the original draft over time are quite progressive. For instance, a real estate developer must keep a minimum balance of 50% of the funds collected for his project in an escrow account. Before the Real Estate Regulatory Bill was drafted, the concept of creating an escrow account for a real estate project in which to hold funds for a project did not exist at all. In the absence of such a regulation, builders are at liberty to siphon off funds collected for their projects and use them to purchase more land or in the construction of other projects.

The Real Estate Regulatory Bill will make it compulsory for builders to ensure that at least 50% of such funds will remain reserved solely for the development of the project for which they were collected from buyers. To ensure that this actually happens, they will have to pay these funds into an escrow account within 15 days. While this is definitely a rule which will protect the interests of property buyers to some extent, it still means that builders can use half of the funds collected from buyers for other purposes.

This gives rise to a pertinent question – why would they want to do that? Isn’t it in the builder’s own interest to complete a project on time? Unfortunately, many developers don’t look at it that way at all. The reason why they divert funds from ongoing projects is so that they can purchase land to build land banks, which allows them to showcase more projects on their balance sheets. Doing so makes allows them to raise more capital from banks or private equity funds, and also to give an inflated image of the size of their business.

There have been several other changes to the draft Real Estate Regulatory Bill, as well – each giving a clear message that the era in which developers could do whatever they want is going to be history once it is implemented. Not least among these important changes is that developers will have to register all projects which they are constructing within 3 months once the Bill becomes a law. If they fail to do so, they will be penalized to the tune of 10% of the overall project cost, and will have to bear an additional penalty of 10% and even face a prison term for any further delay to register their project.

The Real Estate regulatory Bill will also bring an end to developers’ freedom to make changes in the original plans or structural designs of their projects once they have been registered. They will only be able to make any changes if they are able to get the signed approval of at least 2/3rds of those who have invested into the project. Projects which do not have completion certificates issued as yet are now also included, meaning that an even bigger segment of buyers will benefit from the protection of their interests.

The current version of the Real Estate Regulatory Bill also has another noteworthy amendment in the fact that it now includes commercial office projects. In other words, investors who have plugged their funds into commercial office properties will also be protected by the Bill. Of course, the fact is that 85% of the Indian real estate market consists of the residential sector. However, this amendment is important because it will help the sector become more transparent in every respect, and not just in some segments. Real estate brokers and agents are now also included in the latest draft of the Bill, which means that will also be liable for legal action if they engage in any practices which are not in line with the new law.

Finally, the latest draft of the Real Estate Regulatory Bill permits customers with grievances to move the consumer courts, and does not position itself as their only legal recourse.

With all these positive amendments now in place, the Real Estate regulatory Bill is indeed a powerful means to make the chronically opaque Indian real estate sector more transparent. Once it becomes a law, people will feel more confident in investing into real estate, and this will result in the revival which everyone has been waiting for. This confidence will take time to become evident, but it will definitely come – and when it does, we will see massive changes on the ground.

Also Read: Runwal Greens: Luxury builders or unethical extortionists?

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Journalist Behind the Panama Papers Killed in a Car Bomb

Caruana Galizia was recently described by the American news outlet Politico as a "one-woman WikiLeaks".

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Daphne Caruana Galizia died on Monday when her car, a Peugeot 108, was destroyed by a powerful explosive device. (Representative image) Pixabay

Valletta, October 17, 2017 : A journalist who led the Panama Papers probe into corruption in Malta was killed on Monday in a car bomb near her residence, the media reported.

Daphne Caruana Galizia died on Monday when her car, a Peugeot 108, was destroyed by a powerful explosive device, reports the Guardian.

A blogger whose posts often attracted more readers than the combined circulation of the country’s newspapers, Caruana Galizia was recently described by the American news outlet Politico as a “one-woman WikiLeaks”.

Her latest revelations accused Malta’s Prime Minister Joseph Muscat and two of his closest aides, connecting offshore companies linked to the three men with the sale of Maltese passports and payments from the government of Azerbaijan.

No group or individual claimed responsibility for the attack, the Guardian reported.

Malta’s President Marie-Louise Coleiro Preca, called for calm. “In these moments, when the country is shocked by such a vicious attack, I call on everyone to measure their words, to not pass judgement and to show solidarity.”

ALSO READ Not Just Journalist Ram Chandra Chhatrapati, these 9 People too Bore the Brunt of Speaking Truth to Fight Corruption

In a statement, Muscat condemned the “barbaric attack”.

“Everyone knows Caruana Galizia was a harsh critic of mine,” said Muscat, adding “Both politically and personally, but nobody can justify this barbaric act in any way.”

He announced in parliament later on Monday that Federal Bureau of Investigation (FBI) officers were on their way to Malta to assist with the investigation, following his request for help from the US government.

According to local media reports, Caruana Galizia filed a police report 15 days ago to say that she had been receiving death threats.

The journalist posted her final blog on her Running Commentary website at 2.35 p.m. on Monday, and the explosion, which occurred near her home, was reported to police just after 3 p.m.

Over the last two years, her reporting had largely focused on revelations from the Panama Papers, a cache of 11.5 million documents leaked from the internal database of the world’s fourth largest offshore law firm, Mossack Fonseca. (IANS)

 

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Amit Shah Rejects Allegation of Money Laundering on Son Jay Shah

"Where has money laundering been done? All the transactions happened through cheques and banks," claimed Amit Shah at an event.

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Amit Shah, BJP National President. Wikimedia

Ahmedabad, October 13, 2017 : Breaking his silence, BJP president Amit Shah rejected allegations of money laundering against his son Jay Shah whose company had reportedly recorded an extraordinary spike in business after the BJP came to power at the Centre, and asserted that it had not done any business with the government nor taken any kickbacks.

He also said that unlike the Congress, which had faced many corruption charges in the past, his son has shown courage to file a civil and criminal defamation suit on the allegations levelled against him and “invited a probe against himself” by this step.

“There is no money laundering involved in Jay’s company. This company is completely in commodity business, where turnover is more while the profit is less. We have exported bajra, corn and rice while coriander was imported. And after doing a turnover of Rs 80 crore, they don’t tell how much they made profit,” Amit Shah said at an “India Today” event “Gujarat Panchayat”.

Answering questions, he said that after making a turnover of Rs 80 crore, Jay made a loss of Rs 1.5 crore. “Where has money laundering been done? All the transactions happened through cheques and banks,” he said.

Asked about Jay Shah filing a defamation suit against the publication, Shah said: “Before answering your question I would like to ask you one thing. After Independence, how many corruption charges have been made against the Congress?

“Please understand this is not corruption. Many allegations of corruption were made against the Congress. Did it ever file a civil suit or defamation suit? No. Why they lacked such courage? Today Jay has filed a defamation as well as civil suit and is demanding a probe himself. Those who have the evidence can submit it to the court, and then the court will decide,” the BJP president said.

He said: “We have ourselves invited a probe and on the company issue I want to clarify that it has not done business with the government of even Re 1 nor taken any government land or tender. Neither has it received kickbacks as in the case of Bofors.”

When asked about Jay’s company securing unsecured loans, Shah said it was not unsecured loans. “It was a line of credit,” he added. (IANS)

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Lalu Yadav is Shamelessly Corrupt and a Fake Secular

The author Gaurav Tyagi asserts that Lalu’s party RJD, should be disbanded and a life ban should be imposed on Lalu plus his kin from pursuing political careers. Read on to know why!

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Does Lalu Yadav portray himself as the ‘messiah’ of Muslims by aligning with fundamentalist Muslim preachers? Wikimedia


– by Gaurav Tyagi


New Delhi, September 5, 2017 : 
26th July witnessed a big political drama in India, when Nitish Kumar, the C.M. of Bihar submitted his resignation.

The government in Bihar was a coalition of three political parties; Nitish Kumar’s JD(U), Lalu Yadav’s RJD and Congress.

Nitish was back in the C.M’s chair, the very next day due to the support extended to his party, JD (U) by BJP to form the government in Bihar.

The coalition of the aforesaid three parties thereby collapsed, which annoyed Lalu Yadav, the head of RJD a lot.

Lalu Yadav hijacked the plank of secularism to indulge in blatant corruption and promote his family in politics.

Secularism implies the principle of separating government institutions as well as politicians from religion and religious figures. In India the meaning of secularism has entirely been altered by politicians like Lalu, who openly woo Muslim fundamentalists from Mosques and waste government funds in order to appease them.

Lalu keeps on harping upon keeping Muslims safe in Bihar. Maintenance of law and order is the foremost task of any elected government, what’s the big deal in it?

ALSO READ Dynasty syndrome: Lalu chosen as RJD chief for 9th time

Lalu’s politics involves developing vote banks from his caste comprising of Yadavs and Muslims.

He portrays himself as the ‘messiah’ of Muslims by aligning with fundamentalist Muslim preachers and gangsters like Shahbuddin.

Lalu never addresses the root cause of poverty and backwardness among Indian Muslims.
It is largely due to the community shunning of mainstream educational institutes and going to worthless madrasas, (Muslim religious schools) which primarily focus on students, rote learning of the Muslim holy book; Koran.

In the absence of modern knowledge, madrasa graduates are unable to improve their material prosperity and face the challenges of contemporary society.

The Ulemas or the Islamic scholars’ regressive attitude is reflected in the following statement of Maulana Samiul Haq, of the Haqqania madrasa, a prominent Deobandi madrasa; “Young minds are not for thinking. We catch them for the madrasas when they are young, and by the time they are old enough to think, they know what to think.”

Fake seculars like Lalu would never tell Muslims to study in proper schools because an educated Muslim can easily decipher the tricks played by such politicians.
A large number of illiterate or madrasa brand Muslims suit Lalu because then by showing the fear of BJP and Hindus, these Muslims can be easily turned into vote banks for his political party.

CBI, ED and other government agencies recently conducted large number of raids on Lalu and his family. They discovered Billions amassed by this so called ‘champion of oppressed’.

Lalu accumulated large number of farm-houses, land holdings, companies etc. in the name of his family comprising of his illiterate wife and 9 children; 7 daughters and 2 sons.

Both his sons, Tejashwi Prasad Yadav and Tej Pratap Yadav, are school drop-outs. The former was the deputy CM of Bihar with various ministerial portfolios, while the latter was the Health Minister of the province in the coalition government.

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Tejashwi Prasad Yadav and Tej Pratap Yadav at a public event. Twitter

Lalu was declared guilty by the courts for his lead role in the Bihar fodder scam worth thousands of Crores. Lalu Yadav was jailed for 135 days in 1997 but he was lodged in a Bihar Military Police guest house with all comforts.

Before his incarceration, Lalu installed his uneducated wife Rabri Devi as the C.M. of Bihar. Lalu was jailed on various other occasions for his involvement in the aforementioned swindle.

Every time, Lalu was put in prison, he received 5 star hotel facilities and got bail easily. Lalu continued being the de facto C.M of Bihar by inducting his wife as the rubber- stamp C.M. of Bihar.

He was finally sentenced to a 5 year jail term in October 2013 by a special CBI court.
Instead of being in a jail, he is again out on bail, busy in enriching and establishing his progeny in politics.

A poster for Lalu Yadav’s political rally in Patna on Sunday, 27th August depicted one of Lalu’s foolish son as Lord Krishna while the other buffoon is shown as Arjun. Lalu’s daughter and Rajya Sabha M.P, Misa Bharti is depicted as the famous freedom fighter, Rani of Jhansi; Lakshmibai. Lalu and his wife Rabri are blessing their children in this poster.

What a mockery of historical and religious characters.

Lalu is saying that he and his family are being victimized. These utterances constitute ‘heights of shamelessness’.

Lalu indulged in blatant corruption and misuse of office for personal gains. On getting exposed he started parroting; this is a conspiracy of BJP and law would take its own course.

These terms in India mean that court cases would drag for 20-30 years. The politician will die but the court proceedings would still remain pending.
Classic example is Jayalalitha, the court cases against her were continuing since, 1996 but the final judgment was passed in 2017 after her death.

Lalu’s son, Tejashwi Prasad, the Ex-Deputy C.M of Bihar was a member of IPL cricket team, Delhi Daredevils for 4 years from 2008-2012.

ALSO READ Lalu’s son Tej Pratap faces his first electoral test in Mahua

During these 4 years, Tejashwi didn’t play a single game for Delhi Daredevils.

Which sporting team in the world would keep such a useless player in its squad?

Delhi Daredevils is owned by GMR group. This business house must be investigated, as to what were the compelling reasons behind continuous retention of this trash cricketer, who wasn’t competent to play even a single game during 4 seasons.

What were the financial benefits given to Tejashwi? Did the GMR group receive concessions from Lalu Yadav in exchange for keeping his son in Delhi Daredevils team? These are serious issues and need further investigations.

Misa Bharti, eldest daughter of Lalu Yadav is a Rajya Sabha M.P. She topped the MBBS examination of Patna Medical College Hospital during the late 90’s.

Misa never excelled in her classes, either at school or college. At her convocation, the presenter of the degree requested her not to treat any patients ever.

Lalu through his clout in Bihar first got her admission into MBBS and then deceptively made her a topper.

Misa Bharti after topping her MBBS studies and obtaining her medical degree did not work as a Doctor even for a single day, neither did she start her own medical practice.

This is humbug Lalu Yadav, the ‘self- styled’ protector of Muslims and ‘self- declared’ skipper of the Indian opposition political parties, comprising of so called secular forces but in reality just corrupt family controlled political dynasties.

Lalu and his political clan should be imprisoned for at least a minimum period of 10 years with provisions of no bail plus hard labor in the jail.

All undeclared properties; including land parcels, bank accounts, commercial businesses, residences etc. unearthed by the authorities during raids on Lalu and his family must be confiscated by the central government.

Lalu’s party RJD, which is nothing more than a corrupt family enterprise should be disbanded and a life ban imposed on Lalu plus his kin from pursuing political careers.

An exemplary example needs to be made of this corrupt, Lalu so, as to deter other existing as well as budding ‘Lalu Prasad Yadavs’, abounding in the Indian political system from Kashmir to Kanyakumari.

 

– The author is a Master Degree holder in International Tourism & Leisure Studies from Netherlands and is based in China.