Hyderabad Metropolitan Development Authority to soon implement land pooling scheme

Times of India 17/06/2013

HYDERABAD: For planned and systematic development in peripheral areas, the Hyderabad Metropolitan Development Authority (HMDA) will implement land pooling scheme (LPS) in its jurisdiction soon. Land pooling scheme can be undertaken either by the authority, the civic body or a licensed private developer provided the conditions are fulfilled according to the master plan of HMDA.

The draft LPS has been cleared by the municipal administration and urban development (MA&UD) department and would be placed before the HMDA executive committee on June 21 for its approval.

HMDA sources said the LPS would first be implemented in the Hyderabad metropolitan area as there are provisions in the HMDA Act, 2008, for LPS and will be extended to other parts of the state, especially urban development authorities since there are no such provisions in the AP Urban Areas (Development) Act, 1975.

The MA&UD department had constituted a committee for preparing detailed guidelines for land pooling projects. The committee has metropolitan commissioner of HMDA as the chairman, commissioner and director of municipal administration as member and director of town and country planning as member convener and vice-chairmen of Visakhapatnam and Vijayawada urban development authorities as members. The committee has prepared guidelines and submitted them to the state government.

Under this scheme, individual owners or farmers could come together to develop land to an extent of 25 hectares (100 acres) or more with the clearance of HMDA and provide basic amenities like road, drinking water and street lighting.

"It will be a win-win situation for both the land owners and the authority. The land owners will get developed land though they may lose some land with clear title and without any litigations and also appreciation of their property's land value. The authority or local body need not acquire any land for roads and other facilities," an HMDA official, who is associated with LPS, told TOI.

The HMDA has broadly divided the LPS into two types. The first type is Road Development LP area, which would be taken up for notified master plan and road network for already identified potential areas. The other category is Town Ship Development LP area. For the second type, the minimum size of layout should be 100 acres.

For LPS, at least two-third (66%) of property owners should be willing to take up land pooling schemes. If some of the owners do not come forward, the authority would acquire land invoking the urgency clause under the Land Acquisition Act, 1894. The land owners, who do not wish to be part of LPS, would get compensation as per the Act only. The developer has to hand over open spaces for public purpose to the authority as per rules.

"Initially, the committee had proposed some incentives like building rules relaxations for developers who come forward for taking up LPS. However, later it was decided to stick to the provision of the master plan and existing building rules only," another HMDA official said.

A shot in the arm for city realty

The LPS would first be implemented in the Hyderabad metropolitan area and will be extended to other parts of the state, including Vizag and Vijayawada.

Land pooling scheme can be undertaken either by the civic body or a licenced private developer provided the conditions are fulfilled according to the master plan of HMDA.

The MA&UD department had constituted a committee for preparing detailed guidelines for land pooling projects. The committee has metropolitan commissioner of HMDA as the chairman, commissioner and director of municipal administration as member and director of town and country planning as member convener and vice-chairmen of Vizag and Vijayawada urban development authorities as members. The committee has prepared guidelines and submitted them to the state government.

Under this scheme, individual owners or farmers could come together to develop land to an extent of 25 hectares (100 acres) or more with the clearance of HMDA and provide basic amenities like road, drinking water and streetlighting.

It will be a win-win situation for both the land owners and the authority. The land owners will get developed land though they may lose some land with clear title and without any litigations and also appreciation of their property's land value. The authority or local body need not acquire any land for roads and other facilities

The draft LPS has been cleared by the municipal administration and urban development (MA&UD) department and would be placed before the HMDA executive committee on June 21 for its approval.

Union Cabinet approves regulator for real estate, lays down norms to help home buyers

Times of India May 5, 2013

NEW DELHI: The Union Cabinet on Tuesday cleared a legislation to set up a long-pending real estate regulator aiming to protect home buyers from unscrupulous developers and builders.

A real estate regulator — to be set up in every state — will ensure that private developers get all their projects registered with it before sale and only after obtaining all necessary clearances.

"It will be mandatory for developers under the law to get every project registered with the regulator before selling any immovable property," an official said.

While the commercial real estate has been kept out of purview of the proposed bill, it will apply to residential buildings.

There is a provision for mandatory public disclosure of all project details like credentials of promoters, lay out plan, land status, carpet area and number of apartments booked and status of statutory approvals, addressing a major concern of buyers about incomplete or fraudulent land acquisition and pending clearances.

The consumer-friendly legislation will clearly define carpet area and private developers will not be allowed to sell houses or flats on the basis of ambiguous super area.

The builders won't be allowed to publish misleading advertisements to lure buyers while advertising the project. "They will have to use the pictures reflecting the actual project that will be delivered to homebuyers," an official said.

The developer will have to deposit 70% of funds received for a particular project in a separate bank account to cover the construction cost of the project. This provision was made to discourage developers from diverting funds of a particular project to another that often causes inordinate delay.

Punitive provisions ranging from a penalty which may be up to 10% of the project cost, de-registration of the project and imprisonment are being made in the bill.

The Real Estate (Regulation and Development) Bill 2013, which seeks to provide a uniform regulatory environment to the sector, was opposed by private developers in totality but housing minister Ajay Maken stuck to it, saying the basic tenet of the legislation is based on public disclosure that will infuse transparency.

Under the bill, there will be a model builder-buyer agreement which is expected to reduce ambiguities in real estate transactions that not many buyers are familiar with.

Real estate agents will also be asked to register with the regulator. Agents, an important link between the promoter and buyer, have been an unregulated lot till now. Once they are registered, it will help in curbing money laundering.

For fast tracking settlement of disputes, an adjudicating officer not below joint secretary in the state will be appointed by the authority. There will also be Real Estate Appellate Tribunal that will hear appeals from orders, decisions or directions of regulator and adjudicating officer.