Plot rates sees 30-40% rise in Gurugram & Independent Builder Floors rates in Gurugram are bound to rise in coming days.

There was a steep fall in rates of Delhi after demonetization and subsequently, Gurugram also bore the brunt of this demonetization. Besides this shortage of parking space, increasing traffic in lanes of Delhi roads has caused ripples in plot rates in neighbouring Gurugram.

Post demonetization, in the last 10-12 months there has been and a steep rise in property rates and following the trend Gurugram has also seen an unprecedented rise in the plot rates. As of today this hike is limited to the plot rates and hasn't affected the floor and apartment rates as yet. There have been 25% to 40% rise in plot rates all over Gurugram.

This rise in the price of the Plot has been mainly attributed to the approval of 4^th Floor and increase in FAR to 198%, therefore those persons who were in the business of constructing floors in Delhi found Gurugram attractive. You will see the spike in the construction activities throughout Gurugram.

It can be easily seen that least developed Sector-57 of Gurugram has seen rampant constructions and plot rates have increased from Rs 50,000/- to 95,000/- per sq yards in last 6-7 months.

Now the moot question is that what happened to the rates of Independent Builder Floors in Gurugram have they remained stable or increased?

During the last 2 years, the rates of the plot haven't increased in the magnitude of the plot rates, rather they have been on the same slab for the last 2 years. The main reason which can be attributed to this that builders who purchased a plot at cheaper rates are still earning the same or more, as compared to the one who has started building floor after buying the plot at increased rates. More or less the current inventory is being sold at the same rate as it was 2 years back (marginal increase can be seen at some places).

What will happen the rates of Independent Builder Floors in coming days?

It is the simple age-old concept of demand and supply which will ascertain the rates of plots, once the inventory of those builders who procured their plot prior to this hike is sold, the builders who are indulging into constructions of new Independent Builder Floors will be selling their inventory at the prices proportionate to the plot prices.

Comparative Study of the Plot rates and Independent Builder Floors during last year.

Location	Plot Size (sq yards)	Rate of Plot		BHK	Rate of Floor
		1 yr back	Today		1 yr back	Today
DLF Phase 1	270	1.35L	1.50L	3 BHK	2.10Cr	2.25Cr
DLF Phase 2	215	1.35L	1.65L	3 BHK	1.60Cr	1.90Cr
DLF Phase 3	215	1.25L	1.50L	3 BHK	1.40Cr	1.70Cr
Sushant Lok-1	215	1.10L	1.30L	3 BHK	1.10Cr	1.40Cr
South City-1	240	1L	1.20L	3 BHk	1.30Cr	1.55Cr
South City-1	340	90k	1.15L	3+1BHK	1.80Cr	2.30Cr
Sector -45	204	85K	1.10L	3 BHK	95L	1.15Cr
Sector-46	204	95K	1.25L	3 BHK	1.Cr	1.10Cr
Sector -47	204	85K	1.10L	3 BHK	95L	1.10 Cr
Sector -57	204	75K	1.05L	3 BHK	80L	95L
Vipil World	360	65K	90K	3+1BHK	1.60Cr	1.70Cr
Uppal Southend	311	85K	1L	3 BHK	1.30Cr	1.60Cr
South City-2	240	85K	1L	3 BHK	1.15Cr	1.35Cr
Malibu Towne	240	1L	1.40L	3 BHK	1.45Cr	1.65Cr
Sector -57	263	70K	93K	3 BHK	1 Cr	1.10Cr

Buy it now, else you will miss the bus….

High price and subsequent high maintenance cost in private builder's apartments and builder floor is attracting the home searchers towards as Independent Builder Floors of HSVP's Sectors and Private Colonies. It highly recommended that those who are in dual mind whether to wait for a falling price or buy at current price should buy decently constructed Independent Builder Floors anywhere in Gurugram. Local administration is giving a push to basic infrastructure of Gurugram and buyers are advised to get into this rush bus else they will miss the bus.

Disclaimer: The opinion of the author is based on personal learnings. Please re-confirm rates before buying or selling properties.

The Author of this article Pramod Singh is into real estate business since last decade. He can be reached at +91-7000042762or +91-9899790003 for consultations and assistance. Kindly write your query in comments.

Residents of Sector-52, Gurugram seeks equality as HUDA recalculates Enhancement in some Sectors of Haryana

Haryana Shehri Vikas Pradhikaran (HSVP) which is reeling under the severe cash crunch, levied Enhancement Cost onto the Plots of various HUDA Sectors of Haryana. This time there was proper outcry amongst  the residents almost Haryana. Amid protest, dharnas and agitations, on 5^th May 2018 Chief Minister Sh Manohar Lal who also happens to be the Chairman of announced an One-time Settlement Scheme wherein a straight 40% rebate was offered onto the Enhancement amount and it's interest. This scheme was effective from 15^th May 2018 and remained in force till 16^th July 2018.

Not all residents and owners of these HUDA/HSVP Sectors of Haryana were happy with the scheme as they had apprehensions that whatever Enhancement HSVP is claiming is hypothetically escalated and if calculated correctly will be enormously reduced. On their claims Chief Minister Haryana assured that HSVP will re-calculate the enhancement  for those who don't intend to avail the benefit of the scheme. It was also assured that few points of contention as under will be considered while re assessing the Enhancement Cost:

• Interest of period of delay in Conveying of Enhancement by HSVP will be looked into.
• Land pockets which were released after the Sectors were floated should be reduced from Sector.
• Land which is still under litigation u/s 24(2) of New Land Acquisition Act of 2013 be reduced from the chargeable areas.
• Unused HUDA Land in the Sectors be reduced from the chargeable area.
• Sector Roads has to shared with adjoining Sectors

Now, the Sector-52, Gurugram residents and plot owners are feeling cheated as they along with similarly placed Sector like Sector-51, Sector-27, 28, 42, 43 of Gurugram and various other Sectors have paid complete Enhancements without any rebate.

Residents Welfare Association of Sector-52, Gurugram have decided to take up this matter with authorities as they have failed to avail OTSS Scheme and the largesse of HSVP.

RWA of Sector-52, Gurugram is therefore seeking the equal treatment which HSVP is intending to extend to the Sectors which are currently facing the wrath of enhancement. Since HSVP is re calculating considering the technical points hence the RWA of Sector-52 seeks similar grounds of proposed relief be extended to them as they have paid their all of the 3 Enhancements as per schedule decided by the HUDA (now HSVP)

Author of this blog Pankaj Yadav is a practicing advocate at High Court of Punjab and Haryana, Chandigarh and is taking up the matter pertaining to HUDA and was instrumental in the reduction of Enhancements in Sector-52 and Sector-51, Gurugram. The author can be reached at pankajyadav.legal@gmail.com or +91-9711791179

One-Time Settlement Scheme (OTSS) by HUDA has to be challenged before 15th July 2018 else there will be no option left.

The Haryana Shehari Vikas Pradhikaran (HSVP), earlier know as HUDA has been shouting from rooftop that it is under severe cash crunch. Therefore it can be presumed that in order to gather money it has issued Enhancement Recovery Notices throughout HUDA Sectors in Haryana particularly in Gurugram, Panchkula, Faridabad, Rohtak, Ambala, Bahadurgarh, Rewari, Sonipat, Hisar, Panipat and Fatehabad.

There was huge outcry amongst the residents of HUDA Sectors wherein people have been living since last 20-25 years. The reasoning given by HUDA of levying enhancement in these sectors was indigestible and are liable to be withdrawn. Residents of these HUDA Sectors have held rallies, Dharnas etc against the HUDA or Haryana Government's move.

Sensing the outrage and anger amongst residents and plot owners Chief Minister of Haryana who also happens to be the Chairman of HSVP/HUDA convened a meeting on 4th May 2018 of RWAs of these HUDA Sectors and in that meeting he gave an offer of One-Time Settlement Scheme (OTSS) with a rebate of 40% which has to be availed in 2 months and after that keeping in mind the concerns of residents a relook at enhancement will be done and if there are any corrections then same would be done residents but the plot owners will lose the right to avail the rebate.

One-Time Settlement Scheme (OTSS) of HSVP has created the divide in residents and plot owners. Prior to this scheme almost all Sectors of Haryana was ready to fight this enhancement either by demonstration or litigation but by bringing this One-Time Settlement Scheme (OTSS) with a rebate of 40% HUDA has created the divide amongst the residents and plot owners of these HUDA Sectors as not everybody is in frame of mind to litigate. Besides this there are few owners who bought properties just as an investment and would like to exit if given chance, these people will like to avail the OTSS with a rebate of 40%.

Now the residents and plot owners of the HUDA Sector of Haryana wherein enhancement has been levied can be categorized as under:

• Residents of those sectors wherein the enhancement is not under challenge and they have defaulted the payment will eagerly seek the rebate.
• Residents  who have money and don't want to litigate will deposit and avail advantage of policy.
• Residents who want to pay but are unable to accumulate this huge amount in this short span of 2 months.
• Last one are those who think that whatever enhancement is claimed is un maintainable and will not hold waters if calculated correctly. They will not deposit the enhancement under this scheme.

Now the policy has to be challenged and that too before the expiry of policy, to claim the benefits of the scheme in correct manner and legal points which makes the policy challengeble are:

1. This offer is being given by a welfare state which has its responsibilities towards its subjects. Hence state can't behave like a private company or a money lender. It can't push its decisions down our throat with no options. This One-Time Settlement Scheme (OTSS) of HSVP  is nothing less than Britisher's Rowlatt Act also known as Black Act wherein there was No Dalil, No Vakil, No Appeal i.e., no pleas, no lawyer, no Appeal.
2. The outstanding amount displayed in PPM of allottee on which this OTSS Policy is supposedly giving rebate on is being objected and needs to be reduced drastically.
3. Government and HSVP can't give rebate of fictitious figures and same has to be rational. Only then rebate would have sanctity otherwise it would be like discount offered by some shopkeepers who first escalate prices and then announce sale in order to attract customers.
4. There has been various instances like in Sector-26, Panchkula, Sector-52 & Sector-51 Gurugram wherein the HUDA/HSVP has reduced their claimed enhancement cost, so it can't be ruled out that there is scope of relief in Enhancement claimed now.
5. HSVP is forcing the allottees to accept this offer without disclosing the other option i.e what would happen if rebate is not accepted. This is sort of a wager agreement and is liable to declared void in court of law.
6. Particularly in the case of Sector-57, Gurugram the 1st Enhancement is still under challenge in the Hon'ble High Court and Plot Owners have deposited 1st Enhancement under protest there is every likelihood that HSVP will have to lower its claim as there are big wrongs in the calculations. So before the decision on 1st Enhancement the 2nd Enhancement shouldn't have been issued or this  OTSS Policy of 40% Rebate should be applicable on deposited 1st Enhancement as it is still under challenge.
7.  In layman terms the discount should be offered on correct amount which HSVP could explain to its allottees.

The current One-Time Settlement Scheme of 40 % Rebate has to be challenged as early as possible as after 14th July 2018 the challenge will be non maintainable. The following allottees can challenge the OTSS Policy of HSVP giving rebate of 40% on outstanding:

1. Those residents and plot owners who have challenged this or previous enhancements and outcome is still pending.
2. Those residents and plot owners whose have made their calculations and are of belief that they are on strong footings should challenge this policy and take the relief of 40% on corrected amount.
3. Those residents and plot owners specially Sector-57, Gurugram who have deposited their enhancements just few days prior to this scheme.

Author of this blog is Pankaj Yadav and is resident of Sector-52, a practicing advocate at High Court of Punjab and Haryana, Chandigarh and was instrumental in reduction of Enhancements in Sector-52 and Sector-51, Gurugram. Author can be reached at pankajyadav.legal@gmail.com or +91-9711791179

Enhancement in HUDA Sectors : An insight and ways of going against it.

Many Sectors of HUDA throughout Haryana are reeling under the pressure of Enhancement in HUDA's  Plot cost. There are news of agitations, dharnas etc against Enhanced cost which has been imposed by HUDA on the pretext of Enhanced Compensation that has to be paid by Haryana Government following court's directive to the land owners on which the HUDA Sectors were carved out.

Whether HUDA justified in claiming such Enhanced Cost?

At the time of initial allotment of HUDA Plot there is Condition No. 9 which says " 9. The above price is tentative to the extent that any enhancement in the cost of land awarded by the competent Authority under the land Acquisition Act shall also be payable proportionately as determined by the authority. The additional price determined shall be paid within thirty days of its demand."

Legally speaking while accepting the allotment, allottee enters in Agreement and thus HUDA can force its way under the provisions of The HUDA Act, 1977 and The Indian Contract Act, 1872.

Method of Calculating Enhancement by HUDA is dubious.

It is pertinent to note the method by which HUDA calculates the Enhancement Cost is confusing and opaque. Despite of various efforts HUDA till date never explains the method with which it arrives to a figure. HUDA till all experiences  we have had, calculates the Enhancement keeping the initial plan of the Sector as base, where as at the time when Enhancement is loaded the reality on the ground changes entirely, like large pockets get released, licenses are given to private builders, benevolent schemes are launched by the government etc. Hence, HUDA should calculate the Enhancement keeping the current situation as base of calculation not the initial sector plan.

Can the Enhancement Cost once issued be withdrawn ?

It is the legislative's prerogative to withdraw the enhancement and if the State feels that it can bear the cost onto itself in order give respite to the Plot Owners and Residents of HUDA Sectors, it can withdraw the Enhancement, but there hasn't been a single precedent wherein the Enhancement was  withdrawn.

Withdrawing Enhancement Notice will be like opening  a whole new can of worms for the government as other sectors of Haryana which have paid Enhancements in the past will also start claiming for reimbursement of their paid enhancements through the court of law.

Government can by the way of Gazette Notification or change in HUDA Act stop Enhancements in future, any retrospective relief will have to extended to all Enhancement till date. It is vital to note that HSVP (HUDA) has cleverly issued notices of Enhancement despite of the fact Hon'ble CM was issuing statements promising relief.

Only factual representations to HUDA from the plot owners can save the Day…

There are lot many dharnas, protests, media coverage being done throughout Haryana against the atrocious escalation of Plot Cost. This is genuine outcry but as we all have seen that current and as well as previous dispensation virtually didn't had any sensitivities, all governments have rubbished such demands citing court's order.

A detailed representation wherein the method and points on whose basis the HUDA calculated the Enhancement Cost, needs to be challenged and contradicted. This representations will remain the sole basis for the relief which is being sought from government or the relief which is anticipated from the Hon'ble Courts.

We have seen in the cases of reduction of enhancements in Sector -26 of Panchkula, Sector-52 & Sector-51 of Gurugram that the solid and factual representations led to the reduction of enhancement.

If the plot owners approach the court without filing the representation or after filing vague and emotional representation then there are dim chances of reduction or reversal as has been in the case of 1^st appeal against the enhancement of Sector-57, Sector-27, Sector-28, Sector-42 & Sector-43 of Gurugram.

What should a proper representation be like…

A proper and fitting representations should challenge the method of calculation like:

·        How much area was acquired and how much of area is being used by residents and residents related public utilities.

·        What is the area under Green Belt as per site plan for which enhancement is seeked and what is actual area on ground.

·        Is the area for which enhancement is seeked acquired earlier or land was already with HUDA, as it was the case in Sector-51 & 51 of Gurugram.

·        Open spaces and HUDA Land should be go clarified.

·        What money has Govt has actually paid and what is that it wants to recover, meaning thereby detailed study of awards and actual payments have to be verified.

·        When was the award or court verdict was announced and when the payment was given, delay in payments needs to be proved.

Besides this there are many technical points which needs to be raised to bend the government. As it has been seen relief has only be provided, wherein the HUDA has been confronted.

When and how to approach the court.

Most important part is the unity and common approach. It generally happens that there is difference in opinions as the issue involves public at large. If any group without proper preparation approach the court and is unable to satisfy the court for the grant of adequate relief, this would make the path difficult for those who approach court with proper preparations, as once court rejects or dismisses the petition than it becomes difficult for counsel to convince the court for desired relief. So court should be approached in group and unison.

Author of this blog is Pankaj Yadav is resident of Sector-52, a practicing advocate at High Court of Punjab and Haryana, Chandigarh and was instrumental in reduction of Enhancements in Sector-52 and Sector-51, Gurugram. Author can be reached at pankajyadav.legal@gmail.com or +91-9711791179

Second Enhancement by HUDA in Sector-57, Gurugram of Rs 6748.47 per sq mtrs. Residents unite to fight Tooth & Nail

In a letter dated 08^th March 2018 which was written from Chief Administrator HUDA to Estate Officer-II, HUDA, wherein there are directions to recover 2^nd Enhancement  Cost of Rs 6784.47/- per sq meter from the Owners/Allottees of Plots/Floors of Sector-57, Gurugram.

This is a pure shocker for the Plot owners and residents of Sector-57, Gurugram who have been reeling under the burden of 1^st Enhancement of Rs 5612.80/-  per sq yards  (Rs 6712.9 per sq mtrs) by HUDA which was issued on 07.11.2012. It is also important to note that this 1^st Enhancement is still under challenge in Hon'ble High Court of Punjab & Haryana. It is difficult to understand what prompted the legal minds of HUDA to issue the 2^nd Enhancement while fate of 1^st Enhancement cost is still subjudice.

It is pertinent to note that the letter announcing the 2^nd Enhancement,  mentions few orders of Hon'ble ADJ ranging in the years 2009-11 and an order of Hon'ble High Court dated 10.12.2015 as the reason for escalation of plot cost or Enhancement of plot in Sector-57.

Since HUDA hasn't provided any breakup of calculations neither in the case of 1^st Enhancement nor in the proposed 2^nd Enhancement, still on the very basic premise, there are apparent anomalies in 2^nd Enhancement. The anomalies are:

1. When the 1^st Enhancement is still under challenge then why HUDA has brought up this 2^nd Enhancement?
2. The letter for 2^nd Enhancement bears mention of Hon'ble ADJ's orders of 2009-11, then why this was not recovered in 1^st Enhancement?
3. Local farmers were given enhanced cost of their acquired land as per ADJ's order by Land Acquisition Officer in the year 2011. Who is bearing the interest cost (15% per annum) because of delay of 9 long years.
4.  As per the Hon'ble High Court's order dated 10.12.2015 government hasn't paid money to farmers as yet,  still they have started the process of recovery by the way of 2^nd Enhancement without acknowledging the amount which is required to be paid to farmers
5. Orders of 10.12.2015 by Hon'ble High Court were not  complied with in time, which means there is delay of more than 2 years, meaning thereby extra burden of interest on plot owners and residents of Sector-57. Why this delay?

This matter is of grave concern RWA & residents of Sector-57 have started the movement to challenge this atrocious 2^nd Enhancement in the court of law. In this process on 18^th March 2018 a meeting was held in Devi Lal Park, Sector-56. An internal committee has been formed by the residents to takeup matter legally. 

Since this matter affects all not only residents but plot owners also, so it would prudent enough that more and more people show solidarity with cause. 

There is one active whatsapp group of residents, send your request to join that group and remain updated. All are requested to extend their support as this issue has repercussions on public at large.

Author of this blog is Pankaj Yadav, a practicing advocate at High Court of Punjab and Haryana, Chandigarh and was instrumental in reduction of Enhancements in Sector-52 and Sector-51, Gurugram. Author can be reached at pankajyadav.legal@gmail.com or +91-9711791179

Enhancement shocker for the residents and plot owners of Sector-51, Gurgaon

Haryana Urban Development Authority (HUDA) lived upto its reputation and has passed an illogical order of stopping the refund of excess enhancement of Sector-51, Gurgaon. Earlier Chief Administrator HUDA passed a speaking order wherein the enhancement cost was reduced by Rs 4405/- per sq yards. Many residents have already claimed their refunds.

Sizable number of plot owners and flat owners of group housing societies were still waiting for the refund and they were shocked to know that their refund has been stopped by orders of superiors i.e CCF (Chief Controller of Finance), HUDA.

It is difficult to understand that how come CCF have realized now that refund was inappropriate, whereas the Chief Administrator filed Speaking Orders in Hon'ble High Court of Punjab & Haryana wherein the enhancement was reduced by Rs 4405/-. All this smells a rot as it is well known that HUDA is out of money and they are trying to delay the process of refund on trivial and non maintainable grounds. 

HUDA is not aware that these orders to stop refund will imply that Chief Administrator  HUDA filed a false report before Hon'ble High Court of Punjab & Haryana thus is bound to face the ire of the court.

It is also pertinent to note that the reduction of enhancement by Rs 4405/- per sq yards was made possible because case of Artemis Hospital v/s HUDA in which a committee was constituted comprising of HUDA officials, representative of Artemis and RWA Sector-51, Gurgaon. While the said committee was hopeful to get further relief  from Rs 4405/- this act of stopping the refund speaks lot about arrogant manner in which HUDA operates.

HUDA forgets that it charges service tax and is bound to provide services. It is no different from private developers, it's every act challengeable and accountable. HUDA Officials must not forget that we general public and have paid for everything we have. 

Author is one of the representative of the Committee working to analyse the Enhancement of Sector-51. To understand more,  for consultations please feel free to contact author of this blog at 9899790003 or write at pankaj@easyghar.com.

Huge Relief for the HUDA Plots & CGHS Flat Owners in Sector-51, Gurgaon is on cards

In an major development pertaining to the Enhanced Cost levied by cash crunched Haryana Urban Development Authority (HUDA) the residents, plot owners & Group Housing Apartments owners in Sector-51 are bound to get relief on the lines of Sector-52, Gurgaon.

Despite of the fact that Residents Welfare Association & various Plot owners in their personal capacities had approached HUDA against the atrocious escalation in plot cost by them. 

As usual intentionally or due lack of caliber HUDA was not able to address the issue, hence the residents were left with no option but to approach Hon'ble High Court of Punjab & Haryana. High Court in almost all petitions directed HUDA to resolve the representations of residents & plot owners of Sector-51. Thick skinned HUDA didn't paid any heeds to High Court's direction and have faced and are still facing various Contempt Cases.

Ray of hope didn't came through High Court but came by the way activism of few residents of Sector-51 and Artemis Hospital (which is also being levied Enhancement). On 02^nd February 2016, a delegation of Artemis and Sector-51 met Sh P Raghavendra Rao, Additional Chief Secretary, Town & Country Planning, Haryana and he after accessing the facts ordered " A committee headed by CCF, HUDA and CTP, HUDA, Administrator, Gurgaon, Estate Officer, Gurgaon, representative of hospital and a representative of Resident Welfare Association of Sector-51, as the members would constituted by Chief Administrator, HUDA immediately. The Committee would examine all the relevant issues and determine whether the enhancement calculations have been correctly made and submit their detailed report to Chief Administrator, HUDA who would take a final decision on the same based on merits and equity. The committee is directed to decide the issue within 3 months from the date of this order and in the meantime no coercive action be taken qua the property involved in this case. Disposed of accordingly."

After much follow-ups a meeting of said committee took place on 28^th June 2016  but didn't seem much keen to resolve the issue.

However, feeling the pain of enhanced cost the members of RWA Sector-51 have been meeting  top brass again and again in Chandigarh. Things are seemingly appear to shaping up for a huge relief as there are major flaws in the calculation by HUDA and it's departments.

It is pertinent to note that Sector-51, Gurgaon has been made to pay more than Rs 10,000/- per sq yards were as plots were allotted at Rs 3400/- per sq yards. Meaning thereby the Plots owners and residents have asked to pay more than thrice.

Disclaimer: Author is active member of the group which is taking up the matter with authorities. To understand more,  for consultations please feel free to contact author of this blog at 9899790003 or write at pankaj@easyghar.com.