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The recently passed Real Estate (Regulation & Development) Bill, 2016, in the Rajya Sabha and the Lok Sabha, is set to ease the home-buying process. The bill has undergone several amendments and will be effective in bringing transparency and accountability in the real estate sector, thus increasing consumer confidence and benefiting the sector as a whole.
The bill aims to make the sector transparent, give home buyers the advantage and, in turn, lift the market.
The bill sets a firm foothold in the real estate sector and would be a foundation for this sector for many years to come. With the changing skylines in many cities, it takes within its ambit many factors, including development and redevelopment, thus paving the way for a smooth road ahead. It will impact the sector, positively at two levels—first at the micro level of homebuyers, and second at a macro level of the entire real estate sector.
Timely completion and delivery:
Project delays are one of the major issues currently plaguing the real estate sector. In the residential property sector, a delay of three to four years is the accepted norm; in certain cases, it is more than seven to eight years. Over-leveraging by developers is the primary reason for such delays.
Developers will now have to deposit 70% of the collections from home buyers in a dedicated account to be used only for that particular project. It has been clarified that if the land cost has already been incurred by the promoter, he can withdraw the amount to that extent.
Level playing field:
At present, rights of both the developer and the home buyer emanate from the agreement for sale. But these agreements are heavily loaded in favour of the developer. For example, interest on late payments for consumers is as high as 18%, but the compensation to them by developers in case of a project delay, is abysmally low and varies across contracts. Henceforth, both developers and consumers will have to pay the same rate of interest for delays on their respective parts.
Developers will now have to deliver on time, adhering to the level of quality stated in the information provided to the regulatory authority during registration.
Better quality buildings:
To counter issues related to building defects and promote good practices in the sector, some developers provide a warranty for structural damages for 1-3 years. Extending this period, the bill states that the liability of the developers for structural defects will now be five years from the date of handing over possession.
Majority to hold sway:
Developers cannot make alterations or additions in the sanctioned plans and specifications of the building or the common areas without the consent of at least two-thirds of buyers. Such provisions in the bill will ensure that home buyers are getting the exact apartment for which they have paid and have a say in layout revision. However, this provision of obtaining consent of two-thirds of buyers may cause delay. Buyers may raise unnecessary objections and it may result in legal proceedings.
This may be a problem in cases where it is not affecting the premises or flats already sold and the open or common areas, as also in cases where the total layout allows construction of more buildings in compliance of the building rules or building bye-laws or Development Control Regulations.
Provisions in the bill will without doubt make the process of home-buying much easier, but on a larger scale, they will also have repercussions on the entire real estate sector.
The real estate market is largely non-transparent. Most stakeholders operate in their own silos. This is true especially among developers. The absence of a regulator is to a great extent responsible for this plight. With a regulator in place, the sector will be more efficient, prices will be more rationalised and most importantly, the regulator will ensure that malpractices are weeded out well in time.
‘Make in India’ the Prime Minister’s initiative, is a concept which is timed just right, said Pawan Kumar Dhoot, MD, Dhoot Group. “India’s demographic advantage remains under-utilized, despite a boom in the service sector. India’s policy-makers have realized that a labour-intensive manufacturing sector can not only generate more employment and increase the overall income levels, but also set in motion the wheels of business towards robust economic growth. As part of his efforts to make India a manufacturing hub, Prime Minister Narendra Modi has launched the ‘Make in India’ campaign last week.Dhoot Group welcomes the government’s plan to facilitate investment, foster innovation and build the best-in-class manufacturing infrastructure in India,” he said.
Focusing on the Prime Minister’s ‘Make in India’ campaign, Pawan Kumar Dhoot said it aims to boost the Indian manufacturing sector as also bring in massive investments. “So, ‘Vision 2022’ should be about ensuring that India becomes an economic super power, one where citizens also have eco-friendly living amidst environment-friendly Smart Cities – truly, a vision for which we all need to work together, and ensure that the dream becomes a reality,” he said. For this, the wish-list includes single window, time-bound clearances and permissions, these are basic things which Real Estate needs to fulfill the vision of Housing for All Indians by 2022.
“Prime Minister Narendra Modi has promised more economic reforms and a stable tax regime so as to take manufacturing’s share in the gross domestic product to 25 per cent in the near future. Addressing the Make in India event in Mumbai, he promised to make India’s tax regime more efficient and said his government was streamlining processes to ease investments. India is simplifying processes like licences, security and environmental clearance, the Prime Minister also said there is an all-round emphasis on ‘ease of doing business’. This is a promising start,” said Niranjan Hiranandani.
“We already have the vision (Homes for All Indians by 2022) and the campaign (Make in India),” said Pawan Kumar Dhoot. “What we need to ensure success is to supplement both with enhanced skill-sets for the human resources, which will ensure ‘Make in India’ becomes a reality,” he concluded.
26 north and south facing villas spread across sprawling 4.5 acres. 170 m pedestrian-only green spine running from the front of the property to back. Combines the exclusivity of bungalow living with the merriment of community living. Olympia Enchante is a Pre Certified PLATINUM rated Green Building.
Name : Olympia Enchante
Location : Whitefield – Bangalore
Area : 0.2 Million Sq. ft.
Type : Residential
- 26 north and south facing villas spread across sprawling 4.5 acres
- 170 m pedestrian-only green spine running from the front of the property to back
- Combines the exclusivity of bungalow living with the merriment of community living
- Olympia Enchante is a Pre Certified PLATINUM rated Green Building
Time Centre an office-cum-shopping-complex is designed keeping in mind the pace of time. Time Centre Project promoted by Sh. Pawan Kumar Dhoot and Ninex Group. Project Located at Golf Course road, Time Centre will provide ultra-modern infrastructure and facilities which will make it a right destination for the retailers, corporate world and shoppers
Dhoot Group of Real estate Companies India started way back to 1962 in a truly entrepreneurial style by its visionary – Sh. Kedar Nath Dhoot- Our Inspiration Mentor, Dhoot Group.
Nurtured over the years with hard work, determination and dedication by Sh. Pawan Kumar Dhoot, the Group today has grown into a large business conglomerate with true pan India presence.
Dhoot Group is through professionally managed organizations were in strategic and policy related decisions are made by poll and team of qualify professionals carry out day to day operations.
Management transparency, professional approach, commitment to excellent quality & service, timely deliveries, extremely high quality construction standards, and efficient systems with latest infrastructure have helped the Group to achieve high brand reputation all over the country. Today, we have more than 100 companies and more than 10,000 people are directly and indirectly employed with us.
The ability of meeting the challenges of time and technology has helped Dhoot Group in experiencing incredible growth and shaping the then a small group into multi-crore enterprise.
Today, Group has expanded its business to sectors as diverse as Real Estate and Infrastructure, Power, Manufacturing, Finance, Education, Healthcare and Hospitality.
Name : Olympia Platina
Location : Guindy – Chennai
Area : 0.115 Million Sq.ft
Type : Commercial
- A 9 storied marvel in 0.115 Million square ft. area
- Located at the prime Guindy Industrial Estate [housing some of the best IT addresses]
- Built as per the IGBC norms and has applied for pre certification – GOLD
- A boutique project identified to support smaller IT / Commercial office space needs.
Location :ECR – Chennai
Area :1.5 million sq ft
- 1.5 million sq ft of high end residential development – 116 apartments and 163 villas
- First approved high rise development on ECR with un hindered view of the Bay of Bengal
- Access to a natural eight-acre lagoon
- Luxury villas, sky apartments, boutique retail, infinity pool, spa and resort-style club house