MMRDA PLANS HOUSING PROJECTS WITH BUS SERVICES:Hindustan Times

MUMBAI: The Mumbai Metropolitan Re gion Development Authority (MMRDA) plans to construct affordable houses using relatively cheap land at some distance from railway stations. To offset the disadvantages of such locations - which could be about 10km from the stations - the MMRDA plans to have dedicated bus services connecting the housing projects with the stations. MMRDA is open to building these projects in various areas of the Mumbai Metropolitan Region (MMR).

UPS Madan, MMRDA commissioner, s aid, “We will study how the housing scheme remains affordable if it is constructed en bloc in interior areas, about 10 km away from the railway stations, where the cost of land is relatively low. In order to make it attractive, the Bus Rapid Transport System (BRTS) can be provided to link it with railway stations, which will reduce travel time to a few minutes,” he said.

He said, “The plan has been formulated after considering various factors such as area and construction cost in relation to land cost, various income groups and affordability.”

If MMRDA finds that the plan is feasible, it may rope in other government agencies to construct the projects jointly.

The MMRDA’s plan is distinct from the state government’s plan to build 11 lakh homes in MMR by 2022 as per its draft housing policy released earlier this year.

The proposal to have housing projects with BRTS was put up by architect Shirish Patel on Monday, during a meeting of the Unified Mumbai Metropolitan Transport Authority (UMMTA).

The UMMTA is a government body tasked with bringing about coordination between various agencies involved in the planning and implementation of urban transport projects, besides integrated management of mass transport systems in t he Mumbai Metropolitan Region.

STRATOSPHERIC PRICES FOR PRIVATE RESIDENCES - Super Rich's Appetite for Iconic Homes Grows In Time of Slump:The Economic Times

Experts believe aspirational value and exclusivity of iconic properties drive big-ticket deals

India's super rich are spotting an opportunity in an otherwise sluggish property market, and leveraging on it to buy luxury pads for themselves.

In the past one week, two large South Mumbai bungalow deals have been clinched by the biggest names of the corporate world, while at least one more iconic property , Hindustan Unilever's guest house Alhambra on Carmichael Road, is generating good interest.

Last week, industrialist Kumar Mangalam Birla emerged as the highest bidder for the sea-facing, 30,000-sq-ft, Jatia House in Malabar Hill. The Aditya Birla Group chairman is paying Rs 425 crore for the property, making it the most expensive bungalow deal ever in India, surpassing the 2012, Rs 400 crore, Maheshwari House transaction.

In the latest, Cyrus Poonawalla, chairman of Poonawalla Group, is buying US consulate's Lincoln House at Breach Candy for Rs 750 crore. The property, spread over 2.06 acres, is much larger than Jatia House. Last year, the Godrej family acquired Mehrangir, the house of Homi Bhabha, father of India's nuclear programme, in Ma Rs 372 crore.labar Hill for ` Birla, Poonawalla, Godrej and others paying stratospheric prices for these iconic properties are buying them for private use, and market experts expect some more deals like these, as the appetite seems to be growing for such private resi dences for which money isn't a limiting factor.

“These deals may not be an indication of prevailing market rate, as drivers for such transactions are not technical and commercial valuations,“ said Shashank Jain, partner -transaction services at PwC India.

“Given the large size of such deals, primarily for personal use, not everyone is in race to buy and money is not a constraint for the ones who are in fray,“ Jain said. He expects a few more such properties coming out in the market.

The aspirational value of these homes is often driven by their exclusivity and iconic status.

“In the first place, the supply for such assets is extremely restricted -they are in a class of their own, with no comparable options,“ said Anuj Puri, chairman and country head at property consultant JLL India. “Secondly, the sentiment and purchasing power of the buyers of such properties is not governed by economic considerations like interest rates and stock market performance.“

There are only a few locations that boast of neighbourhoods where super rich industrialists are keen to reside.

In South Mumbai, Carmichael Road, Altamount Road, Nepean Sea Road and Malabar Hill are among the most sought-after addresses. In New Delhi, Lutyens' Delhi, Dr APJ Abdul Kalam Road (until recently Aurangzeb Road), Amrita Shergill Marg and Prithviraj Road are known for the prominent and influential personalities residing there. A number of these wealthy and influential names are keen to get bigger spaces as their children grow up, while new entrants are also ready to pay a premium.

In New Delhi, too, deals for bungalows are continuing irrespective of ongoing market conditions. Early this year, Subhash Chandra-promoted Essel Group bought a bungalow in Lutyens' Delhi for `. 304 crore.More recently, a leading exporter paid `. 173 crore for a bungalow on Prithviraj Road.

“They (buyers) represent the highly capitalised creamy layer, and are at all times willing and able to close the deal when such once-in-a-lifetime opportunities come by ,“ said Puri.

According to a broker, who is currently scouting for bungalows in South Mumbai for two prominent businessmen, most buyers in this category also review the property's development potential like any real estate developer does.However, their decision is not solely based on this factor.

7-storey passenger terminal for catamarans to Mandwa:The Times of India

A multistorey terminal with restaurants, shops and conference centres is being planned at Ferry Wharf for roll onroll off (ro-ro) services to Mandwa and Nerul.

“Ferry Wharf will have an iconic terminus building that will have recreational facilities and will become a tourist attraction,“ said Gautam Dey , business development officer, Mumbai Port Trust (MbPT).

Under the Rs 153-crore project, a catamaran service will be started between Ferry Wharf and Mandwa, and Nerul. Each catamaran will be able to accommodate 40-50 cars, along with 300 passengers.

A memorandum of understanding has been signed between MbPT and the Maharashtra Maritime Board (MMB). Facilities at Mandwa will be set up by the MMB.At Nerul, a marina will be built by the City and Industrial Development Corporation (Cidco).

Ferry wharf has been plagued by the stink of fish, but port officials are confident of finding a solution by the time the project is ready in two years.

The catamarans will have a speed of 29 knots and will be run by the MMB through an operator.

The MbPT has planned a 530-metre elevated road from near P D'Mello Road (along Mujawar Pakhadi Road in the dock area) to Ferry Wharf to ensure faster entry to the terminus.

A marshalling yard will be built alongside the terminus building, where up to 120 cars and 80 buses can be parked at a time.

The Maharahstra State Road Development Corporation (MSRDC) was earlier entrusted with the task of executing the project. But now, MMB is the implementing agency for the project.

A state government official said, “The existing rail and road corridors in Mum bai have become highly congested. Traffic levels have reached saturation and the city requires immediate measures to augment the capaci ty of its transport system. A passenger water transport facility is envisaged to go a long way in relieving pressure off an otherwise over loaded commuting system.“

Dey said, “We are planning lot of seaside development in the port area to make it a happening place.“

Western coastal road: Another builders’ dream project:Hindustan Times

THE WCR WILL DEEPEN THE DIVIDE BETWEEN THE PROSPEROUS WESTERN EDGE AND THE REST OF THE CITY

MUMBAI: Like many another costly project in Mumbai of dubious value, the Western Coastal Road (WCR) is yet another project that will have massive costs and yet do virtually nothing for Mumbai’s citizens — except, in this case, the tiny handful that travel only by car. Sadly, our citizens are either too docile (the poor) or too complicit (the rich) to question the government’s choices.

Every infrastructure project in the city should be looked at keeping the following in mind:

(a) Its long-term impact on the development of the city

(b) The numbers of people who benefit from it

(c) The income class of the people who benefit

(d) Its priority in the list of city projects

(e) Its cost and how it can be funded

In approving the WCR, the Government of Maharashtra seems to have overlooked each of these considerations. In regard to long-term impact, the WCR will further deepen the divide between the prosperous western edge and the rest of the city. The western edge already has real estate prices that are among the highest in the world. The experience of cities all over the world has been that it is important to keep a balance of different income groups spread throughout the city. Cities that ignored this have suffered. Paris constructed housing for the poor on its perimeter and suffered severe riots. Property prices will inevitably vary across a city, but taking measures that aggravate the difference is bad policy.

Investment attracts investment. Public infrastructure investment inevitably attracts population and further private investment by way of property development. The temptation to build new residential blocks and hotels with a great and unobstructed sea view will be impossible to resist. And let us not delude ourselves, the accommodation in these new Marine Drives will naturally be at the highest possible prices. Of course the scheme as presented today shows extensive green areas, both between the road and the existing edge of the land and at the places where new offshore geometric intersections are laid out to connect with feeder roads. Such green areas will not remain green for very long. One does not need to look beyond what has happened to the already minimal green areas in the city to know what the fate of these new green areas will be.

The WCR is planned as two lanes each way. So it is really meant for cars only. Whether you say so or not, that is the way it will be. The reality of the Bandra-Worli Sea Link is that buses are not allowed on it. So it will be with the WCR. Let us not forget that the new road will be on the extreme western edge of Mumbai. To get anywhere else in Mumbai, you will have to turn off the WCR and enter one of the east-west cross roads, already too narrow and too crowded to cope with more traffic from the WCR. So the WCR will truly serve only those who live along it and have their offices, clubs and restaurants also along the same WCR. This super-wealthy minority will then be able to zip up and down the WCR, from home to office to restaurant to office to gym to club and home again, all without touching the rest of the city.

Incidentally, there cannot be bus stops along the route of the WCR, because where will the bus travellers go from the bus stop? The only users of such bus stops would be servants in the high value buildings or hotels alongside.

A recent transport study showed that 52% of all trips in the city are by walking. Of the vehicular trips, 5% are by car. Overall, 2.2% of daily trips in Mumbai are by car. More than half of these are surely along the eastern and central parts of Mumbai. So perhaps less than 1% of daily trips might exploit the benefit of the WCR. So is this massive investment for the exclusive benefit of that tiny handful? Or are there sideshows going on we know nothing about? Including, of course, the promise of future builders’ profits.

Worst of all, the project adds no new land to the city. What the city needs instead is rapid transit projects that extend its transport systems into as yet untouched areas, and that add new land to the city, on which to locate new homes and new jobs. This is the only way we can hope to have affordable housing for the millions who currently live in slums.

To put it plainly, the outstanding merit of the Western Coastal Road seems to be that it is a high value project, and therefore much loved by our political decision makers. It also has the virtue of not opening up more land, thus maintaining land scarcity and its consequent high value, which is a top priority consideration for builders. That it does nothing for 99% of Mumbai’s citizens is neither here nor there — as long as, like so many other projects, people can be fooled into believing it is all for their benefit and no other considerations apply.

( Shirish Patel is a civil engineer, urban planner and founder of Shirish Patel and Associates, a civic engineering company)

Finally, SRA chief agrees to vacate Byculla bungalow

Mumbai: Slum Rehabilitation Authority (SRA) CEO Aseem Gupta has agreed to vacate the Brihanmumbai Municipal Corporation (BMC) bungalow he occupies in Byculla. Gupta will move out of the sprawling heritage building by the end of this month.

“I have already told the BMC that I will move out by October 1. They are okay with that and I do not want any further extension. This was conveyed to them. The SRA has only recently allotted me a flat and I will move there,” Gupta told dna.

dna had, on Monday, reported how Gupta, an IAS officer of the 1994 batch, faced eviction from the 6,000 sq ft bungalow inside the Byculla zoo.

Gupta and his family had moved in to this bungalow in 2010. As additional municipal commissioner of the BMC, he was entitled to stay there. However, he continued to stay there even after his transfer to Thane as Municipal Commissioner in July 2013 and later as CEO of the SRA in January this year.

The BMC asked Gupta to pay a monthly rent of Rs 1 lakh from November 2013, but he hasn’t paid anything yet. According to market estimates, the rent for a bungalow that size in Byculla would easily be over Rs 5 lakh a month. By BMC calculations, Gupta owes the corporation a total of Rs 20 lakh.

“I requested the BMC to charge me a nominal rent since the SRA did not have any designated accommodation for me. I was sanctioned accommodation through the SRA only in August this year. I wasn’t told about the rent till recently. Once the BMC sends a demand letter, I will pay whatever rent they charge me,” Gupta said.

Gupta had initially sought an extension to stay in the bungalow till March 2014 as his daughter was in the 10th standard. He argued that he should be given an extension so that that his daughter’s studies are not affected.

The BMC replied he can do so, provided he paid rent. However, the BMC went silent on the issue for a year and Gupta continued to live in the bungalow. In February 2015, the civic body again reminded Gupta about the rent and gave him a three-month notice. BMC officials said Gupta had sought another extension, but civic chief Ajoy Mehta was against it.

Don’t get awed by big-ticket realty deals

Gulping down the news of the Rs 750-crore Lincoln House deal with a lump in your throat? There is no need to regret not being able to invest in property and earn big money. Big-ticket deals like the Mehrangir House (Rs 372 crore), Jatia House (Rs 425 crore), Maheshwari House (Rs 400 crore) and the Washington House (Rs 341.82 crore) dotting the Mumbai landscape serve important lessons to the real-estate investors.

The 50,000 square feet Lincoln House at Breach Candy was on the block since 2011. Even after the long wait, the seller had to budge from their expected price by Rs 100 crore. At Rs 341.82 crore, the Washington House was also sold below its reserve price of Rs 350 crore. So, if you are banking on a real estate investment to fulfill a particular goal, you may face hurdles like lack of buyers or long wait, especially during recessionary phases. Though the purchase price of the Lincoln house is not publicly known, we can draw similarities between other deals. The famed Worli flat in the Samudra Mahal, which was sold for Rs 21 crore (Rs 1.18 lakh/sq ft) fetched the seller 13.32% annually when we compare it with his purchase cost of Rs 700 per square foot in 1972.

As per the National Housing Board’s Residex that tracks property rates, a house in Mumbai, which was worth 100 in 2007 would fetch 238 in July-September 2014. This translates to a 13.19%. Compare this with the 10-year return of 17.12% from HDFC Top 200 scheme, which is tax free.

But these aren’t the real returns as other costs need to be factored in. Lincoln house was leased to the US Consulate. The new owner Poonawalla will have to make changes as in its present form, the house served as an office. Other costs such as maintenance fee, property tax, water tax, electricity bills, wear and tear, home loan interest, insurance costs, brokerage, stamp duty and registration fee need to be added to the total cost as well.

Also, don’t forget the taxation implications. Profits should be invested in another house or capital gain bonds to escape tax. Else, the seller would have to bear a 20% tax (if sold after three years of purchase) on the indexed amount (adjusted for inflation) of the gains. Compare this to investments in select other instruments where returns are tax-free if held for 1 year (stocks and equity mutual funds) and 3-15 years (debt mutual funds, PPF, etc.) Also, real-estate prices don’t always move upwads. Between January and March 2013, price in Delhi soared 202, but have been on a decline ever since. Between July and September 2014, the prices were recorded at 189 as per the NHB Residex. Chennai has also been seeing ups and downs regularly. You would also face a mismatch in terms of the money needed and the value of the property to be unlocked as you would have to liquidate the entire house.

Mumbaikars give `split verdict' on coastal road:Mirror

Mumbaikars are divided over the proposed coastal road from Nariman Point to Kandivali, according to the feedback received by the BMC.

Nearly 490 people have formally submitted suggestions and objections over the project, which seeks to speed up travel between south Mumbai and the western suburbs.

BMC officials said that 45 per cent of the respondents support the coastal road, while the rest are opposed to any infrastructure project that damages the environment and threatens to further shrink open public space such as parks. The critics also say the 35-km coastal link will only benefit a section of motorists while doing little to ease Mumbai's traffic problems.

The civic body had formally sought residents' views on the ambitious project and the deadline for submissions ended recently.

BMC officials said that they were surprised by the near split verdict as they usually receive only objections from residents for infrastructure proposals.

“This is a rare instance where a number of people who are in favour of the project have written to us,“ an official said, adding that 217 people had sent suggestions, while 266 people had raised objections.

Municipal Commissioner Ajoy Mehta said that a coastal road was vital to the city's efforts to speed up travel.

“We will study residents' feedback and make every effort to address all concerns,“ he said.

Andheri (W) residents have been opposing the project, saying it will displace the nana-nani park. The fishing community fears the coastal road will make it harder for them to get a good catch. Members of the Koli community have sent 296 complaints to the BMC.

The Union ministry of environment and forest had also expressed concerns about reclamation. Additional municipal commissioner Sanjay Mukherjee had recently said that Chief Minister Devendra Fadnavis and Mehta would address the ministry's concerns.

Apart from writing to the BMC, citizens -for and against the project -are also building consensus online. A petition on charge.org received 1,424 hits in support of the project.

AAI's colour-coded flight path map simplifies building permission norms : Times of India

Builders who wish to construct highrises taller than 50 metres, or above 18 storeys, in certain parts of the suburbs and the island city will have to first get a no-objection certificate (NOC) from the Airports Authority of India (AAI), as it has reduced the vertical limit of new constructions by 15 to 30 metres. The AAI decision on building height clearance, taken a few months ago, will impact construction work at Malwani, D N Nagar, Versova, Goregaon, Ghatkopar (West) and Mahim.

The decision has not gone down well with the BMC, which cannot give permission for highrises without the AAI's NOC. Civic sources have claimed that after rounds of meetings, the AAI has agreed to “favourably look into the BMC demand to relax the restriction“.

The AAI has restricted building height to ensure a clear path for flights and emergency landing after take-off. Builders must secure an NOC from the AAI before they can start construction. The Airports Authority of India has restricted building height to 50 metres in some areas of the city so that it doesn't hamper the flight path.According to the AAI plan, the cap on new buildings from Jogeshwari station to Jogeshwari-Vikhroli Link Road and Eastern Express Highway to LBS Road has been reduced to 50 metres from 65 metres at present. It has put a similar cap for Goregaon (West), D N Nagar, Versova and Mahim Junction, where the earlier limit was 80 metres.

But there is some good news or builders--the AAI has raised the cap in some parts of the city.The height restriction around Chembur monorail station, Kur a, Govandi, Mankhurd, Chunabhatti and GTB has been raised to 50m from 30m. Similar y, the cap at Bandra-Kurla Complex has been raised to 50m from 45m. As for Central Mumbai, where mill lands have given way to concrete blocks, there is scope or skyscrapers to come up.

Based on the flight path and the emergency route, the AAI has prepared a colourcoded map for the city , with five divisions.

If one goes by the colour codes, the south Mumbai, Dadar-Parel and Borivli-Dahisar belts show the highest potential for tall buildings.

AAI officials said the map will simplify the process and control corruption. “The com mon man can also understand the height restriction of buildings in their area after perusing the map,“ said VSP Chinson, general manager aerodromes), western region, AAI.

Once the decision on caps s taken, BMC and AAI will in egrate their software based on the map. This will allow any builder to find out the building height limit of their area online without having to run to an authority for details.

ROSE VALLEY SCAM - Firm Got Rs 10,000 cr from Investors:The Economic Times

The arrest of managing directors of ponzi firm Rose Valley , Shibomoy Datta and Ashok Saha by the Central Bureau of Investigation (CBI) has blown the lid Rs 10,000-crore scam with the two of ` confessing that there are 23 hotels and three amusement parks across India worth several crores owned by the Rose valley group.

Datta and Saha are presently in transit remand and are likely to be produced before an Odisha court on September 17. Initial questioning of the two also revealed that the scam is four times bigger than Saradha scam spread across West Bengal, Odisha and Assam. The group was running two major schemes using which they lured investors and then duped them, said officials.

The first scheme was `Ashirwad' where they took money and promised to give a plot of land. The second most popular ond most popular scheme was `holi day membership plan' where the gullible investors are lured by offer ing a holiday plan and then asked to invest in their schemes.

The company is learnt to have opened as many as 21 regional offices 21 regional offices with 880 branches in a short span of 8 years. The group had more than 2.7 lakh active agents and 20 lakh enlisted agents. “Most of these agents were also the victims and have filed a complaint with the police,“ added an official. Datta also said that he joined Rose valley few years back as a manager but was elevated to the position of managing director by Gautam Kundu, chairman and managing director of the firm. Datta, according to sources earlier worked as LIC agent but later joined Pearless group only to later quit and join Rose Valley . He was handling the operation of Rose Valley from Kolkata after the arrest of Kundu by Enforcement Directorate (ED). Saha, a resident of Agartala in Tripura was incharge of operations in Tripura, CBI said.

Lincoln House Sold Rs 100 cr Below Reserve Price to Cyrus Poonawalla:The Economic Times

US consulate property evinced little interest due to lack of scope for redevelopment

Restriction on redevelopment and uncertainty over other approvals have led to the US consulate's South Mumbai property, Lincoln House at Breach Candy, being finally sold about . 100 crore below its initial reserve ` price of ` . 850 crore. The sprawling three-storey house is being sold at about ` . 750 crore to Cyrus Poonawalla, chairman of Poonawalla Group that includes biotech company Serum Institute of India.

Poonawalla, a prominent personality in horse racing, confirmed the deal for the house, which is a mere 10-minute drive from the Mahalaxmi Racecourse. The 2-acre Grade-III heritage property at Breach Candy has a built-up area of around 50,000 sq ft. “It's a beautiful house, we will use it as our residence,“ Poonawalla told ET.

The Poonawallas will make few changes to the house, which was earlier used as an office by the US consulate. The deal will conclude in a few weeks after completion of certain documentation process.

The property has been in the market since the past five years, but there were no takers, given that there was no redevelopment potential for it. Initially, when the sprawling property that carries grade III heritage tag, was put on the block in 2011, the reserve price . 850 crore.was set at ` While few developers, including Tata Housing Development Company, had evinced interest in the property then, their bids were below the reserve price. Tata Housing was the sole bidder for the property at a reserve price of ` . 850 crore. Recently, Tata Housing Development Company also backed out of the deal, given the development restrictions.

Few developers were also evaluating the property, but they decided not to bid for it in the face of the uncertainty surrounding the heritage tag, approval from the ministry of external affairs and restriction on redevelopment, said two realtors who had planned to bid for the property.

They said that the property was best suited for an end-user as it would not involve complexities that a developer would have faced for redeveloping it.

After the US Consulate shifted into its new premises in the Bandra-Kurla Complex, it had put up two of its South Mumbai properties -Lincoln House and Wash ington House -for sale in June 2011 with a reserve price of ` . 850 crore and ` . 350 crore, respectively.

Of these, Washington House at Altamount Road in South Mumbai was bought by realty developer Lodha Group in 2012 for ` . 341.82 crore, also below the reserve price.

Built in 1933, the palatial house was earlier owned by the Maharaja of Wankaner until 1957, when it was leased to the US consulate. Leading British architect Claude Batley, whose work includes landmarks such as the Bombay Gymkhana, had designed the Lincoln House.

In a sluggish property market, this is the second large bungalow transaction that has taken place in the past week. On September 7, industrialist Kumar Mangalam Birla emerged as the highest bidder for the sea-facing 30,000-sq-ft bungalow Jatia House in South Mumbai's Malabar Hill locality with a bid of ` . 425 crore.

The Jatia House deal is also expected to be concluded in a month's time. This is the most expensive bungalow deal overtaking Maheshwari House transaction that took place in 2012 . 400 crore.at `

Housing CMO Quits Amid Top Deck Rejig:The Economic Times

Housing.com's chief marketing officer (CMO) Pratik Seal has resigned from the property listings website less than a year into his tenure.Seal's exit comes at a time when the website is restructuring its top management and strategy team to focus more on product innovation and monetisation of its core business.

During his stint at Housing, Seal was leading the “Look Up“ marketing campaign, on which the portal spent `. 150 crore of its funding. Seal is now serving a two-month notice period, stepping out in November, Housing.com said.

“The company has already hired a new CMO and CFO who are scheduled to join in the next two weeks,“ said one person directly aware of the matter.

Housing is already in talks with a clutch of strategic investors for a bigger round of funding, including with Chinese real estate portal SouFun. To ease capital need while talks progress, existing investor Softbank is set to back the company with at least $30 million in a bridge round of funding.

In August, Housing appointed former Valiant Entertainment CEO as its chief business officer to drive the overall strategy and growth at the portal.

After the ouster of its chief executive and founder Rahul Yadav earlier this year, Housing is managed by an executive committee that con trols the finances and operations. The com mittee is led by Jonath an Bullock, the Soft Bank executive on the board of Housing.

Rishabh Gupta, chief operating officer, is the interim CEO and is in charge of managing day to day operations.

Last month, ET reported that Housing.com plans to lay off at least 600 employees in the next three months, as it steps up focus on its core technology and product, and tightens its cash burn. The company has already shut down four business departments and asked 160 people to leave, it said in a statement.

Serious responsibility:Mirror

Lavasa has shouldered the responsibility of providing children from impoverished communities in and around its planned private city free and quality education, health care, nutritious meals, transportation and life skills training

When I first heard that Lavasa Corporation Limited had implemented a CSR initiative in its private planned city near Pune (stylistically based on the Italian town of Portofino), it came as a pleasant surprise. For years, the 25,000 acre location has been in the news for reasons other than its foresight in emerging as one of a handful of Indian cities to be built from scratch in the last 100 years.

When construction commenced in Lavasa about seven years ago, the company immediately recognised the need to empower children from impoverished communities in and around its project site through free quality education, nutrition and healthcare. This could have been a case for business prudence in addition to altruistic intent; the building block of any urban society is a pool of smart and skilled workers; through its educational initiative, Lavasa figured it would need a pool of equipped workers by the time Lavasa's construction ended a decade and a half later; these young men and women would find in-Lavasa employment; this would potentially reverse brain drain; this would strengthen family fabric in an emerging location; in turn, local resource availability would help moderate employment costs and strengthen competitiveness.

There are a number of things that differentiate Lavasa's initiative from most others also engaged in providing education to the less-privileged.

One, Lavasa could have embarked on the educational initiative hands-on (most do!), attempted to master something that was not its core competence, reinvented an existing wheel, learnt patiently across its learning curve and picked up brownie points for the effort. It didn't. On the contrary, Lavasa engaged a partner of repute called Christel House International, an Indianapolis-based public charity founded by a businesswomen-turned-philanthropist focused on societal transformation.

Two, Christel House International brought to Lavasa's table a rich complement of international and Indian experiences drawn from working with more than 4,000 of the world's poorest children in Mexico, South Africa, Indianapolis and Bangalore.

Three, Lavasa and Christel House could have provided an education and no more; on the contrary, they extended their poverty-destroying brief with a complement of quality education, nutritious meals, health care, transportation, life skills training and character development in addition to parent and community outreach programs. Clearly not a patch-up job, but the complete works.

Four, the general assumption is that when it comes to CSR, the basic should be adequate; in this case, Christel House, Lavasa's school, is housed in a state-of-the-art building with large classrooms, modern amenities and modern catering facility (managed by experts), articulating that a destiny-transforming agenda is often catalysed by compatible infrastructure addressing national and international benchmarks.

Five, instead of educating students until class four and then looking around for other schools where these students could then be mainstreamed, Christel House Lavasa played the more complete (albeit slower) game: for a school that commenced only in 2010, it has grown to grade seven (435 students and 29 teachers), adding one grade each year (60 students), to grade 12 by 2020.Alternatively, the school could have drawn a larger number of students into its earlier classes, but this would have created two evident problems: the challenge of finding more mainstreamable schools of a similar standard (unlikely) and the quality `loss' that could have resulted in the students yielding their early development advantage following their being absorbed into other schools without a comparable educational standard.

Six, Lavasa is a complete service provider; it doesn't just bear the cost of education, it also picks up the tab for food, uniforms, stationery, transportation and even medical hospitalization expenses. Doctors from Apollo Hospital routinely conduct medical checks for common diseases, relieving rural folk from the perception that their children represent a financial burden.In a subtly intelligent way, Lavasa Corporation does not need to advertise the fact that it truly cares; the message has probably been `sold' many times over to residents by their children.

Seven, when a school starts enhancing academic standards, the demand for admission is always greater than the number of seats available.As the first safeguard that this service extends only to the most deserving (the illiterate, farmers, farm labourers or those in the employ of Lavasa Corporation Limited), Christel House screens families from within the Lavasa project area and with a monthly income not higher than Rs 10,000.

Eight, one would have believed that this would have been a bare-bones operation with a modest outgo; the reality is that Lavasa expends approximately Rs 100,000 per student per year to deliver the best education (you develop respect when you realize that the education of your children in urban India accounts for probably less each year; I certainly pay less for each of my children).

There is a small aside that makes this story complete. Five years ago, The Times Newspapers Limited compensated Lavasa Corporation with UK £30,000 as part of a libel settlement for publishing a wrong article on the company. Lavasa took the entire proceeds and donated it to Christel House School!

Fancy a free room while buying a flat?:Hindustan Times

FLAT RATE There are perks to being a home-buyer this festive season as developers try to stir up interest with marketing schemes

NEW DELHI: Planning to buy a home? You may well strike a lottery this festive season. Tata Housing is offering a complementary free room in their flats. A developer in Noida is giving discounts on his property, with a minimum money-back guarantee of 25,000 – but going all the way up to a 50% discount for 25 flats.

With residential real estate stuck on the flypaper in 2015, developers and property owners are taking recourse to such schemes to attract buyers. And the schemes have already started, a month before the festive season officially kicks off (see box).

In the April to June quarter, sales growth actually fell into the negative territory. Real estate research firm PropEquity said sales growth across India in the first quarter (which is traditionally the lean season for the sector) was -5.7%; about 119,000 units were sold as against 127,000 units in the year-ago period, and 93,000 units in the same period in 2013.

“Demand exists, but what is holding buyers back are various economic factors. The buyer is waiting for the interest rates to come down. Once general economic conditions improve resulting in rupee stability, increased salaries and drop in commodity prices, it will lead to appreciation in sale,” said Sachin Sandhir, global MD, emerging business, at Royal Institution of Chartered Surveyors, a global real estate research firm.

With discounts, assured gifts and other marketing schemes, realtors are hoping for a bull-run till December.

“The Indian real estate sector is going through a slowdown as there is a major demand and supply mismatch across the country, especially in the NCR. The market is at its lowest levels currently. Developers may resort to offering more freebies such as cars with bookings, foreign trips, complimentary modular kitchens, free club memberships, free car parking etc,” said Samir Jasuja, CEO and Founder at PropEquity. “A major chunk of the bookings do happen in the festive season.”

Over the last two years, the October-December quarter saw sales rise as much as 23%, with 133,000 units sold in 2014 and 108,000 units in 2013, according to PropEquity.

PropTiger.com’s co-founder Dhruv Agarwala said: “We are in constant touch with developers... they are betting on the festival season. This time the advantage is with buyers thanks to relatively low prices and some exciting offers. We expect high sales this time.”

Jasuja said: “Markets have been slow to absorb new projects... We can expect aggressive marketing spends by developers to sell existing inventories; already developers are offering projects at almost zero booking amount.”

Now to see if the enquires translate into sales.

BMC to evict SRA chief from Byculla bungalow

Mumbai: Slum Rehabilitation Authority (SRA) CEO Aseem Gupta’s love for a spacious, lavish bungalow in Byculla has landed him in trouble.

The IAS officer of the 1994 batch now faces eviction from the sprawling 6,000 sq ft bungalow inside the Byculla zoo, which he is so fond of.

Gupta and his family had moved in to this bungalow in 2010. As additional municipal commissioner of the Brihanmumbai Municipal Corporation (BMC), he was entitled to stay there.

In July 2013, Gupta was transferred to Thane as Municipal Commissioner. He was bound to vacate the bungalow within three months.

But instead of shifting from the listed heritage structure, Gupta sought an extension to stay in the bungalow till March 2014 as his daughter was in the tenth standard. He argued that he should be given an extension so that that his daughter’s studies are not affected.

The BMC replied that he can do so, provided he paid rent. “We calculated the rent at Rs 1 lakh a month from November 2013. However, he refused to pay up,” a BMC official said.

According to market estimates, the rent for a bungalow that size in Byculla would easily be over Rs 5 lakh a month. By BMC calculations, Gupta owes the corporation a total of Rs 20 lakh.

Then, for almost a year, the BMC went silent on the issue and Gupta continued to live in the bungalow.

In February 2015, the civic body suddenly woke up. It reminded Gupta about the rent. His reply this time was he was paying all electricity and water bills.

“After this reply, we sent him a notice, giving him three months’ time to vacate.

“The three-month period ended in May 2015. Gupta then said that the SRA should pay for him since the agency hasn’t allotted him another residence,” a BMC official pointed out.

Officials say Gupta has sought yet another extension to stay in the bungalow, but BMC chief Ajoy Mehta is against it.

“We have decided not to give him any extension. The bungalow will have to be vacated,” Mehta told dna.

Officials said that the BMC would write to Gupta and ask him to vacate immediately.

Gupta did not respond to calls and text messages.

JICA assures funds to build Mumbai’s trans habour link:Hindustan Times

Bidding process for the trans harbour link is likely to start by December 2015

MUMBAI: The l ong- pending Mumbai Trans Harbour Link ( MTHL) project received a major boost on Friday with the Japan International Cooperation Agency (JICA) assuring chief minister Devendra Fadnavis of fast tracking the loan for the project. Fadnavis is presently touring Japan to pitch for Japanese investments in the state.

According to sources in the chief minister’s office (CMO), based on the technical and socio-environmental studies conducted by JICA and parleys between the state government and JICA officials on Thursday, JICA has given an in-principle nod to fund the MTHL project. The bidding process for the project – a sealink between Sewri (Mumbai) and Nhava (Raigad), to connect Mumbai with the mainland – is likely to start by December 2015.

“We were keen the project bags the funding from JICA as it comes with credibility that few other funding agencies can lend,” said an official, requesting anonymity.

The MTHL project is pegged at Rs11,000 crore. JICA is expected to provide a loan amounting to 80% of the project cost at an annual interest rate of 1.4%.

The Japanese Ministry of Economy, Trade and Industry (METI) has also agreed to assist the state government in the development of Metro projects at Mumbai, Nagpur and Pune.

Fadnavis tweeted: “MoU signed between METI and GoM for Public-Private Cooperative Actions Towards further development of Maharashtra.”

The state has already begun talks with METI for financial assistance to develop a 118-kmlong elevated metro network in the city, pegged at Rs35,400 crore.

Fadnavis tweeted: “Both, GoM & @METI_JPN recognised further cooperation in the devpt of Mumbai, Nagpur, Pune Metro & to develop Smart city in Navi Mumbai SEZ.” He tweeted: “Japan Intl Cooperation Agency (JICA) to start public consultation on Mumbai Metro next week and will also support the bullet train project.”

Officials said the CM announced a re-route of the Mumbai-Ahmedabad bullet train with the upcoming Delhi Mumbai Industrial Corridor in mind. Part of Nashik falls in the project area and the state wanted to ensure better connectivity.

JICA agreed to support tourism infrastructure in Ajanta and Lonar.

‘No leniency for residents of illegal buildings’:Hindustan Times

MUMBAI: Refusing to show leniency to those who bought flats in an unauthorised and dilapidated building at Mumbra, the Bombay high court on Friday permitted them to seek regularisation only on the condition that they furnish an undertaking to hand over, within a specified period, their vacant flats and allow the municipal corporation to demolish the sevenstorey structure, if their plea was rejected.

Besides, the division bench of justice Abhay Oka and justice VL Achliya has further sought undertakings from all 72 families living in Noorjahan Towers in Mumbra stating that they will continue to occupy the building at their own risk and shall also be liable in the event the building collapses and causes loss to any outsider.

“Now, the time has come to hold that the purchasers of flats in unauthorised buildings buy the premises fully knowing that the construction is illegal,” the judges said, adding that a message is required to be sent out very loud and clear that such flat purchasers deserve no leniency.

The court was hearing a petition filed by Farooq Abdul Garar Qazi seeking demolition of the ground-plus-six-storey building constructed three years ago.

Claiming that he had given development rights of a small plot owned by him to a local builder to construct an eightstorey building in accordance with the law, Qazi alleged that the builder instead constructed a seven-storey structure without obtaining any permission f rom t he Thane Municipal Corporation.

Quality of life in city improved: Report:Hindustan Times

CLEAN AND GREEN Civic body claims its efforts to provide better roads and sanitation contributed to healthier environment

CBD BELAPUR: The annual Environment Status Report released by the Navi Mumbai Municipal Corporation (NMMC) claims that the Quality of Life Index (QOLI) in 2014-15 has improved by 0.64% as compared to 2013-14.

According to the report, the Environment Quality Index (EQI) too has increased from 70.69% in the previous year to 71.38% this year. The Urban Infrastructure Index (UII) shows an increase of 79.65% against 79.06% last year.

The Quality of Life Index is measured on the basis of these two parameters.

The NMMC has been using the parameters of EQI, UII and QLI since 2001-2002 to report the environment status in the city.

While EQI indicates the environment status in the city with respect to air, noise, water and earth pollution, UII measures the standard of civic services and infrastructure in the city. The Quality of Life Index is based on the results of EQI and UII.

After the Environmental Status Report assessed every year, the civic body starts chalking out priority for short and long-term action.

NMMC city engineer Mohan Dagaonkar said, “The overall increase in value of EQI is due to the completion of concretisation of the roads and major junctions, higher share in recycling of plastic from municipal solid waste, continuous monitoring of water quality and disinfection by chlorination and so on.”

An increase in value of Urban Infrastructure Index is due to increase in the development of sanitation facilities by increasing the number of toilets in slum areas, transportation of solid waste through use of compactors, improvement in footpaths for the physically challenged and improvement in gardens and road side greenery.

Dagaonkar said: “The overall effect of Environment Quality Index and UII is that there is increase in QOLI for citizens. It is 75.52% this year against 74.88% last year.”

The city engineer said that the NMMC has provided the best possible urban infrastructure and environment. “It is evident from the fact that the Navi Mumbai has been adjudged as the third cleanest in the country and has also been included in the Centre’s smart city project,” he added.

He said: “The NMMC’s mission is to protect, enhance and restore the natural environment for the well-being of all citizens residing in NMMC jurisdiction. The NMMC shall continue its efforts for better environment and better quality of life for citizens.”

The NMMC started publishing the Environment Status Report in 2001-2002 and uses indexes t o help gauge t he status and the improvement. After a series of analysis and research, it decided to use the Environment Quality Index, Urban Infrastructure Index and Quality of Life Index as parameters for its annual environment report.

REALTY ALERT - DEVELOPERS' DELIGHT:The Times of India

To put an end to the long drawn process of getting approvals and ease business norms in the real estate sector, the MCGM has devised a promising plan

In what could bring a much needed cheer to the construc tion industry, the Municipal Corporation of Greater Mum bai has initiated steps, which would reduce the time taken for getting the necessary permissions for starting the construction work. As per the World Bank report, it takes around 27 steps and around 162 days for obtaining a single construction permit in Mumbai. The report further adds that the cost of obtaining the construction permit is around 46.05 per cent of the cost of the construction. To reduce the time taken, the MCGM conducted a detailed exercise to study the process of construction permits and re-engineer it for which they appointed PWC as consultants. On the basis of the recommendations, MCGM plans to initiate steps, which would simplify the construction permits and reduce the time taken by eliminating avoidable procedures. The study foresees a reduction of procedures involving interdepartmental clearances by about 50 per cent and a reduction in time by about 60 per cent with these initiatives.

SELF-CERTIFICATION WHEREVER POSSIBLE

In order to reduce the time between the IOD and PCC (Plinth CC), key reforms like accepting third party certificates, self-certification wherever possible is being considered subject to subsequent verification of these.For instance, for getting an No Objec tion Certificate (NOC) from the tree authority, the architect and developer shall jointly submit a copy of the tree plan showing the trees on the plot with their names by way of selfcertification along with the application of the building proposal. In case of any misrepresentation, both the developer and the architect, will be liable for action as per the provisions of the prevailing Tree Act.

Vicky Oswal, chairman and managing director, Oswal Realtors, explains that the self-certification would actually reduce a lot of time taken for the process. “Though the responsibility of the project anyway lies with the developer and the architect, by proposing self-certification, the authorities actually are putting in the additional responsibility directly on the developers. The move would ensure that the architects and developers take utmost care during processing the documents,“ Oswal informs. Due to these initiatives, the developer too can be assured that he would get all the required permissions on time and would be able to commit a time-frame for the completion of his projects as well.“Earlier, it would take at least around one year just to get the required approvals after the IOD would come.This would unnecessarily delay the proj ect and add to the cost of construc tion,“ he says.

NOCs BASED ON THE FULL POTENTIAL OF THE PROJECT

In addition, it is also be ing looked upon to issue all No Objection Certificates (NOCs) including the tree authority NOC and the chief fire officer NOC, based on full po tential of the project.

“This will enable time-saving for the projects. As the Floor Space Index (FSI) ac crues to developers in stages for certain projects, the devel oper ends up going to the same author ity at least three four times at various stages of the project.

The new initiative would reduce the time taken,“ Bhavesh Sanghrajka, managing director, Shraddha Lifespaces explains.

In the pre-construction stage, certain applications ­ the Tree authority NOC, Storm Water Drainage (SWD), etc could be submitted even before the submission of the building proposal, which is also a welcome step.

TIME LIMITS FOR GRANTING APPROVALS

The MCGM also plans to set time limits for granting approvals for each process. For instance, the IOD and Plinth CC are proposed to be issued simultaneously within 30 days from date of receipt of the proposal. Even the chief fire office shall offer his re mark for NOC within 7 days of sub mitting the application. After issuing the IOD and PCC, the building plan ning department shall co-ordinate with other departments for a joint site visit. The building planning sec tion shall also carry out the visit for granting further clearances within two days from the date of application.

“The new government, understand ing the cumbersome process towards procuring permission for construc tion, has eased out a number of steps to make approvals simpler and faster.

The MCGM has also re-engineered the process of construction permits for timely construction of projects,“ Babulal Varma, managing director, Omkar Realtors & Developers says.

The Occupancy Certificate (OC) and Building Completion Certificate (BCC) shall be issued simultaneously within 15 days from the date of appli cation and submission of requisite compliance.

All completion remarks received from the architect shall be forwarded by the building planning section to respective departments within two days and respective departments will provide inputs within seven days for the occupancy certificate.

GROUNDED in REALTY:The Times of India

Living on the ground floor may not be as easy as it may seem to those living a few floors higher

In a city where homes are mostly preferred in the high-rise buildings, living on the ground floor is not so common among Mumbai residents. A city where about fifty years ago, some `grounded homes' (read: bungalows and shorter buildings) were available, today, however, the realty scene has completely transformed and high-rise structures are a common sight. Amidst this, several buyers opt for an apartment on the higher floors but there are some who are `grounded'.

Nonetheless, living in a home located on the ground floor can often be a luxury. A home at the ground floor in a well-established project could be desired by many.Shalini Talwar, a resident of a premium project in Andheri, picked her present home simply because it was located on the ground floor.“A premium property in a city where space is an issue, is something that would be preferred by all who can afford it. Similarly, when I was looking for a home, this property simply had an edge over others as there was scope of having an open space. The verandah seamlessly reaches out to the lush green landscape of the children play area and has been fully developed and staying here is not only convenient in terms of the green environs but also because none of our furnishings broke while shifting to this apartment.“

It is indeed a point well-made. A lot of residents complain about the damage incurred while shifting homes, as it is extremely difficult to carry big pieces of furniture and appliances. Mostly, workmen use stairs and many a times, thus re sulting in a lot of damage to personal items.

Devanshi Swarup, a software professional stays in a ground floor apartment in Navi Mumbai. However, Swarup does not seem elated by the idea of living on the ground floor. “Living on the ground floor often means that you would be subjected to noise and dust as compared to the higher floors. When I was on the lookout for a property, I was told about the advantages of a ground floor property, one being that I will not have to take the stairs in case there is a power failure. Also, it was slightly cheaper than many other properties.Therefore, I made up my mind to shift here but I am not totally happy about taking that decision.“

Juhi Jain, another resident, talks about her experience of living in a ground floor apartment some time back. “Our family was living in an old cooperative society in Khar. There were very few facilities and staying on the ground floor meant that you would be subject to a lot of public interference.We were fine as long as we were kids but desperately needed some privacy as we grew up. Also, because of the parking problem, there was always noise from the moving vehicles that would also result in increased pollution at our level. Eventually, our parents decided to move out. We are happy to have moved to a high-rise in the same area,“ says Jain.

While it is a privilege to live in independent bungalows and standalone homes in Mumbai, staying on the ground floor in cramped societies may often prove to be a problem for residents but as they say, every coin has two sides.

MTHL: WORK in PROGRESS:The Times of India

The MTHL is an ambitious project that promises Mumbai residents easy commute. We trace the ups and downs of this yet-to-be-completed project and the repercussions it would have on the surrounding areas

“Manhattan faces much of the same land constraints as Mumbai and one can not forget the fact that it is a peninsular city. However, efficient and farsighted planning has ensured its evolution over and under the ground with skyscrapers and underground metros, which maximise the land-use. Its local railways connect locations upto 132 kms away and ferries provide connectivity to dense residential hubs like New Jersey. Using this example as a model, the existing FSI norms for a frontline city like Mumbai must be relaxed to maximise land-use. The Trans Harbour Link alone, can unlock an area many times that of existing Mumbai,“ says Pranay Vakil, chairman, Praron Consulting.

A strong advocate of the Mumbai Trans Harbour Link (MTHL) project, changing the urban landscape of Mumbai, Vakil, however, is disappointed with the slow pace of development. The urban infrastructure has not kept pace with the massive influx of people. Roads are in a constant state of disrepair, perpetual traffic congestion and an overstressed rail network, are characteristics of our transportation system. One only has to look global at leading western cities like Manhattan and London, which have multiple efficient lines of commute into the CBDs.

The Mumbai Trans Harbour Link (MTHL), also known as Sewri-Nhava Sheva Trans Harbour Link, is a proposed 22 km, freeway grade road bridge, connecting Mumbai with Navi Mumbai. When completed, it would be the longest sea bridge in India. The bridge will begin in Sewri, south Mumbai and cross the Thane Creek, north of Elephanta Island and will terminate at Chirle village, near Nhava Sheva. The road will be linked to the Mumbai Pune Expressway in the east and to the proposed Western Freeway in the west.

The sea link will contain a six lane highway, which will be 27 meters in width, in addition to the edge strip and the crash barrier. The project is estimated to cost Rs 11000 crores and is officially estimated to be completed in 2019, although, as of 2015, construction has not begun, the tendering has not been completed (despite three attempts) and funding remains uncertain.

The Maharashtra government, on its part, claims that the much-anticipated 22.5 km stretch of the MTHL that will connect Mumbai and Navi Mumbai, will meet its scheduled deadline of 2019. The chief minister, Devendra Fadnavis affirmed that the state government is working on a war-footing to resolve all the technical and financial issues that have hit the project.

The Mumbai Metropolitan Region Development Authority (MMRDA) has now decided to carry out the project on a cash contract basis, after it failed to receive a single bid from any of the pre-qualified consortia in 2013. The state was initially planning to carry out the project on a Public-Private-Partnership (PPP) model. The built environment of Mumbai's real estate sector is disappointed with the delay and uncertainty and Vakil's take comes as a voice of the industry but he is not alone in his outburst. Abhay Kumar, CMD of Grih Pravesh Buildteck, points out that perhaps no other ambitious urban infrastructure project that is touted as a game changer, has waited for more than 30 years, yet, has no takers and its future appears to be delayed, if not denied. According to him, the project would have improved the connectivity between Mumbai and its neighbouring satellite townships. It also has the potential to be a game-changer in the urban landscape of the city by providing the muchimproved infrastructure. “It will decongest the city, with people looking for affordable homes at the other end of the project. With land becoming increasingly scarce in Mumbai, it is essential for urban planners to look for land parcels in Navi Mumbai and other areas to develop mass and affordable housing, with improved connectivity to Mumbai. We are, however, happy to note that the MMRDA is now looking at executing the project on its own,“ says Kumar.

Brotin Banerjee, MD and CEO of Tata Housing, points out that connectivity along with the cost of land, are amongst the main factors that affect the growth of real estate in a particular region. Rapid urban migration into Mumbai has resulted in the spilling over of this population into the suburbs and peripheries. The main benefit of these areas is the af fordable and comfortable living options, which offer good appreciation on price.

“With growing infrastructure and better connectivity, Navi Mumbai will present feasible living options to the migrant population, working in the main city. The 22-km road, which will connect Sewree in the south central Mumbai and Nhava Sheva in Navi Mumbai, will drastically cut the travel time between Mumbai and Navi Mumbai, bettering the prospects of Navi Mumbai and the surrounding areas as residential hubs,“ says Banerjee.

Subhankar Mitra, head strategic consulting (West), JLL India, says that the Sewree Navasheva sea link will make it feasible to stay in Navi Mumbai and travel to south Mumbai in a shorter time-frame. It is estimated that via the Sewree Navasheva sea link, the CBD at Nariman Point, Fort and SBD of Lower Parel, etc, could be reached in a shorter time than from the western or eastern suburbs. “Once the infrastructure and feeder connections are properly developed, locations like Uran, Ulwe and Dronagiri, would see a very perceptible increase in real estate prices,“ says Mitra.

The Mumbai Trans Harbour Link Project has been under consideration for the last 30 years to develop the island city the way Manhattan has been developed to reduce traffic congestion and develop the area surrounding Navi Mumbai. The project was conceptualised to provide connectivity between Sewri in the island city and Nhava in the main land (Navi Mumbai) for speedy travel. Urban planning experts in Mumbai maintain that there are mid-to-long-term real estate implications of the project. Had the project taken off by now, it would have given a huge psychological boost to the investors for residential projects in these new localities, which would have catalysed into commercial activity. As of now, the dreams of Mumbai turning into Manhattan have been delayed and everyone in Mumbai has a wish that it is not denied.