In part V of our series on key legal considerations for establishing global capability centres (“GCCs”) in India,[1] we discuss the key factors to keep in mind when determining the location where the GCC is to be set up here.Continue Reading Optimal locations for Global Capability Centres (GCCs) in India: Where to set it up?
The real estate sector in the past few years has witnessed massive financial crisis with several real estate companies going bankrupt and many others undergoing corporate insolvency resolution process. While the reasons are manifold, one could see steady recovery despite inflation worries and expensive capital. The recent Supreme Court judgment in recalling its past orders delivered in the matter, relating to insolvency of Amrapali Group of Companies (“Amrapali Group”), have now posed a new challenge to the realty business in NOIDA and Greater NOIDA region. The Supreme Court has held that real estate developers in these regions will have to pay interest amount on outstanding lease premium and other dues to Noida and Greater Noida Authorities (“Authorities”) at rates that have been agreed upon under the contract entered into between them and the reduced interest rates will not be applicable to them.
Continue Reading Unending woes of realty: ‘high interest rates on dues continue to apply’, says SC
The right to receive notice and an opportunity to be heard are considered as twin ingredients of natural justice, unless specifically excluded by legislation. There are certain laws in India that warrant strict compliance with this requirement. The courts in India have also examined this requirement and its consequences, while keeping in mind the extent to which this requirement is needed to be met with.Continue Reading A Notice in Time Saves Nine
The concept of granting authority or delegating is not new to India, in fact, it can be traced back several hundred years. This concept of bestowing power on a person, by another person, to do things in a formal manner is called a ‘power of attorney’. Power of Attorney is widely used in personal and business transactions, as well as in conducting litigations before courts. The person granting the power is called the ‘principal’ and the one who acts on behalf of the principal is an ‘agent’ or ‘attorney’ of the principal. An act done by the agent, pursuant to the powers granted, binds the principal as if the principal himself has done it.Continue Reading Have You Got the Power?
Can allottees approach Consumer Forum under the Consumer Protection Act, 1986[1] (the “CP Act”), despite the remedies available under the Real Estate (Regulation and Development) Act, 2016 (the “RERA”), if they don’t want to take a recourse under the latter? This question was long debated and the Supreme Court of India (“Supreme Court”) finally answered it in the case of Imperial Structures Limited v. Surinder Anil Patni and Another[2]. The Supreme Court held that the RERA does not bar the jurisdiction of the CP Act to deal with the complaints filed by consumers who are homebuyers or allottees of real estate projects registered under RERA. While this finding may create more challenges and complexities, such as parallel litigations and claims initiated under both RERA and CP Act, we will analyse the rationale behind this judgment.
Continue Reading RERA or Consumer Fora? – Homebuyers can make the choice!
India’s real estate sector has been witnessing critical changes since the last few years, including the promulgation of the Real Estate (Regulation and Development) Act, 2016 (the “RERA Act”). The implementation of the RERA Act has pushed the sector to organise and standardise operations and management of real estate entities. The checks and balances imposed by the RERA Act and liquidity crunch faced by the real estate market has forced the dislodgment of small and unorganised players. Owing to such changes, the real estate market is now witnessing a phase of consolidation and collaboration.
Continue Reading Real Estate Collaborations & Significance of Corporate Due Diligence
In the wake of the pandemic Covid-19, many legal and regulatory modifications have been undertaken in the country to facilitate compliances by the business houses as well as ease of doing business.
Recently, the Ministry of Corporate Affairs, Securities and Exchange Board of India, Insolvency and Bankruptcy Board of India, Real Estate Regulatory Authority, to name a few, have issued various regulations as well as amended the existing ones to suitably modify timelines and processes needed for secretarial compliances, periodic reporting, disclosure requirements, tasks to be undertaken under liquidation process etc.
Continue Reading Validity of Operational Licenses In The Wake of Covid-19 – A Grey Area!
The Supreme Court in Pioneer Urban Land and Infrastructure Limited vs. Union of India (Pioneer Judgment)[1], has upheld the constitutionality of the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 (Amendment Act)[2]. Through the Amendment Act[3], the ‘real estate allottees’ (home buyers), as defined under Section 2(d) of the Real Estate (Regulation and Development) Act, 2016 (RERA), were brought within the ambit of ‘financial creditor’ under the Insolvency and Bankruptcy Code, 2016 (IBC).
A three judges’ bench headed by Hon’ble Mr. Justice Rohinton Nariman disposed off a batch of over 150 petitions filed by the real estate developers challenging the constitutional validity of the Amendment Act. The Supreme Court also held that the RERA has to be read harmoniously with the IBC and, in the event of a conflict, the IBC will prevail over the RERA.Continue Reading Home Buyers = Financial Creditors: Supreme Court Reigns
Taking a cue from the Supertech Home Buyers case (as discussed in Part I of this series), the Haryana Real Estate Regulatory Authority (HRERA) has now issued directions to promoters on opening bank accounts, titled as ‘The Haryana Real Estate Regulatory Authority, Gurugram Bank Accounts for the Registered Projects Directions, 2019’ (Directions).
The Directions discuss the opening and maintenance of bank accounts specified under the Real Estate (Regulation and Development) Act, 2016 (Act) and the Haryana Real Estate (Regulation and Development) Rules, 2017 (Rules). The Directions have been issued pursuant to the powers conferred under Section 37 of the Act, which enable the HRERA to issue necessary directions from time to time to the promoters (developers) or allottees or real estate agents.
Continue Reading The 70% Conundrum Part II – Game Changing Directions of Haryana RERA
The Maharashtra Real Estate Regulatory Authority (MahaRERA) in its recent order has held that mere non-procurement of an occupancy certificate by a developer does not make the developer liable to register the real estate project[1] under Section 3 of the Real Estate (Regulation and Development) Act, 2016 (Act).
This order has been passed following a complaint filed by Sulatana Dalal (Complainant) against Asia Group (Developer), before MahaRERA in relation to a project named as ‘Miracle Mall’ situated at Bhiwandi, Thane, Maharashtra. The Complainant’s contention was that even though the building was completely occupied, the Developer had failed to obtain an occupation certificate and committed breach of law. Against this background, the Complainant sought directions from MahaRERA to register the building under the provisions of the Act.
Continue Reading No Occupancy Certificate: Not the Only Criteria for Registration with RERA