Author: Sharada H V

AMENDMENT OF TOWN & COUNTRY PLANNING ACT, 2020 TO BOOST REAL ESTATE

The State Govt. has passed an ordinance on 22nd May 2020 to the TOWN & country planning act. Under the New Amendment act, The Developer shall provide a Provisional plan and Plan of phased development wherein the Developer/Builder can develop the project in three phases. The developer/Builder can develop the first phase with 40% development of the layout and thirty percent in the second phase & remaining 30% in third phase.

Thus after the area earmarked for roads, parks, Playground & other civic amenities of the entire layout area & after completion of the all infrastructure in first phase development the builder has to get the completion certificate from the concerned authority along with first phase development plan and then the developer/builder will be given permission to sell the sites of the first phase development.  The permission to sell will be given only after the registration of the Real Estate Project with RERA.  Similarly the Developer/Builder will be given permission to sell the sites/flat in the second & third phase only after the completion of all infrastructure in second & Third phase development.

TELANGANA HIGHCOURT UPHOLDS THE FUNDAMENTAL RIGHTS EVEN IN COVID-19 PANDEMIC SITUATION

Telangana Highcourt in a PIL has held very clearly that state/ govt. cannot restrict a citizen from having access to his wish of Doctor for the treatment of Covid-19 virus Infection. Such a restrictive action violates the Fundamental rights of a citizen, Right to life & Liberty which includes the right to choose his or her doctor/Medical facilities for a citizen.

While the government order under the provisions of Epidemic Disease Act 1897 has restricted the Private Hospitals & laboratories from doing any testing or giving any treatment. The Highcourt has clearly told that such an order violates Fundamental rights of a citizen. Thus the court has issued an order that any private hospitals & Laboratories having sufficiently equipped for testing, & the Hospitals well equipped & having sufficient facilities for Isolation wards & treatments as per the Standard Operating Procedure (SOP) can undertake & provide the tests of COIVD-19 can also provide the Treatment.  Thus this powerful judgment of the Highcourt in this Pandemic Situation makes it very clear that govt. while putting restrictions of a Right to Life shall also prescribe a procedure by law, which is just fair & reasonable. Even if imposed restrictions the govt. shall not violate or Infringe the rights of a citizen. Further it also mentioned that the court are empowered to see that even in times of emergency, the state or govt. shall act in a fair, just & reasonable manner.

ENFORCEMENT DIRECTORATE PERMITTED TO ATTACH THE ASSETS OF JP MORGAN TO THE EXTENT OF MONEY DIVERTED FROM AMRAPALI HOMEBUYERS

 

Last year Supreme court has ordered for the cancellation of RERA Registration of Amrapali group, as there were huge complaints of Diversion of the money paid by Homebuyers. Nearly 42000 flat buyers were waiting for possession of the flats after payment of huge amount of sale consideration. Nether the development was done nor flat was handed over to the Homebuyers.  Thus Home Buyers group has approached the Supreme Court in this regard.

In the meanwhile there were also allegations that the Amrapali group has diverted the Money to JP Morgan. The Supreme court has kept an embargo to the ED as to not to attach the assets of JP Morgan. That know the ED has provided Sufficient document in support of diversion of funds from Amrapali group to JP Morgan through the account. Hence Supreme Court has given permission to Enforcement Directorate (ED) which has identified that an amount of Rs.187 crores has been diverted to JP Morgan by Amrapali group from the amount paid by Amrapali Homebuyers in violation of Foreign Exchange Management Act & FDI Norms.

CHECK LIST FOR VERIFICATION OF LEGAL DOCUMENTS OF FLAT/PLOT/ SITES

CHECK LIST FOR VERIFICATION OF LEGAL DOCUMENTS OF FLAT/PLOT/ SITES

Title Deeds/ Mother Deed of the land

RTC/Pahani of land

Mutation Entry of land

IHC Certificate

Nil Tenancy Certificate

Family tree

Tippani

Akharbandh

Land Survey records,

Survey Assessment

Atlas

Village map

Index of lands

RR balbagh

Secondary reclass tippani

Endorsement issued by Assistant Commissioner under sec.79A & B of KLRA & under sec.4 of PTCL Act

Registered Partition Deed/s

Registered Sale Deed/s

Registered Gift Deed (If any executed)

Will/s(If any executed)

Mortgage Deed and Discharge Deed (If land was mortgaged for any banks to secure loans)

Encumbrance certificate of land/s for past 30 years

Tax paid receipts

Registered Joint Development Agreement Executed between Builder & Land lord/s

Registered General Power of Attorney Executed by Land lord/s in favor of Builder

Conversion order issued by Deputy commissioner permitting the conversion & use of agriculture land to Non-Agriculture residential use.

Conversion fees paid challan/receipt

Permission for change of land use

Building Approved plan And License

Plan sanction issued by Competent Authority

Commencement Certificate

NOC from BWSSB, BESCOM, KSPCB, HAL, BSNL, SEIAA, Fire Department, Airport Authority of India

House & Vacant Site register extract

Betterment charges paid receipt

Work Order issued by Competent Authority

Katha certificate

Completion & Occupancy Certificate

RERA Registration certificate

Encumbrance certificate of flat/Plot/Site

GOVT. PROPOSES ONE MORE AMENDMENT TO IBC EXTENDING THE TIME LINE TO 1 YEAR PERIOD  IN VIEW OF COVID-19 AND EVEN MSME’S TO BE COVERED UNDER IBC WITH NEW LAWS.

The Central govt. has put forward to do some more Amendments to IBC laws in view of the Economic impact of COVID-19 Lockdown and Business shut down. The Central govt. is likely to do more changes to IBC Amending the laws that any default in the COVID-19 emergency situation shall not be treated as Default apart from increasing the threshold of the claims limit form 1 Lakh Rupee to 1 Crore Rupees. The amendment will be brought into effect that no new cases shall be filed against any company for a period of one year instead of 6 months that was done earlier.

Though central Govt. is trying to put all its efforts to give a new lifeline for the companies, and brining in major changes in the laws. How will this really impact the Economy of the country? The answer for this is not clear, because the lock down is relaxed, Industries of all categories have started functioning will the Economy gain and take back the position as it existed PRE COVID stage is again uncertain. Because the 50 days lock down not only put back the Economy of the Country to a Whole new start along with loss of Jobs, common man does not have earnings, small business are striving hard to gain back the position and sustain in the business. Unless until the common man has got the capacity to spend easily all these efforts may not give expected results. As every person and every Businesses have to start from a New beginning.

The Govt. proposes to bring MSME’S under the IBC code with new Amendments to protect the Industries and the lifeline of small Business to labor class.

This action though is taken to protect the Industries there are chances that intentional defaults also get protected with new Amendments which will be a open way to hurt the Economy again.

We have to wait for the Positive things to happen to every human being to Survive and then only the Industries can sustain leading to the Economic development of the country.

KARNATAKA LAND REFORMS (AMENDMENT) ACT, 2020 WHAT DOES THE AMENDMENT TO KARNATAKA LAND REFORMS (AMENDMENT) ACT, 2020, MEANS TO INDUSTRIES?

In Karnataka, No person or Company or Trust or any authorized person cannot purchase agriculture lands unless he is an Agriculturist. Thus any one who wants to purchase an Agriculture land must be an Agriculturist unless it is specified under the Exemptions mentioned under sec.109. AS such govt. has the power under sec.109 of Karnataka Land Reforms Act to exempt the and land/s from the applicability of provisions such as sec.63, 79A, 79B & 80 and those lands can be used for Industrial Purpose, Educational Purpose, Temples,  Housing projects, for Horticulture purpose including Floriculture and have specified units for each category under the provisions.

Prior to amendment any one who wants to set up an Industry in Karnataka, shall eb able to get an extent of 20 units only, by way of the Amendment to KLR act in 2020, govt has doubled the extent of land that can be utilized for Industries as 40 units. This change will give more land utilization capacity to the Industries and expand and Improve the production, utilization of land, labor and resources available to lead to more employment opportunities and growth in the economy of the state & country. (Unit” means [one acre (40.47 ares)] of A Class land)

Further to this the Purpose of Industrial development also includes Mining of Minor minerals, whether specified or Non-Specified and also includes the Stone Crushing activities under the Karnataka regulation of stone crushers act,2011. Thus it gives an open way to reopen the stne crushing Industries which were stopped since some time.

This amendment  makes it clear that all such lands which are approved by govt. with approval of state Highlevel clearance committee or State level single window clearance committee formed under the provisions of the Karnataka Industries Facilitation Act, 2002.

Further the company who has purchased the land with permission as mentioned above shall after utilization of the land for specific purpose for which it was purchased, it cannot use the land for the specified purpose for various reasons beyond its control than the said land with govt. permission for the utilization of the said land for same purpose. Thus this way the amendment gives a long way for the Industries to set up production along with the way ahead to get back the money invested in case if the Industry is not able to run for any reasons for which it was put up.

This amendment gives a boost for Industrial investment & development in the state further also contributes to the State & National Economy.

DISASTER MANAGEMENT ACT 2005

The Central govt. has brought in force the Disaster management act, 2005 due to COVID-19 Lockdown situation in the country to manage and handle the situation in a very strict manner to protect the health and well being of the citizens of the Country.

When the Disaster management act, 2005 was in force govt. has issued certain orders as to not to cause any damages. Certain orders such as the the Employers, Industries, companies shall pay the full salary, wages to the employees and laborers without any deduction. The landlords shall not ask the tenants to vacate the house, P.G, or any accommodation spaces as rents are not paid in the lockdown situation and it does not amounts to default under the eyes of law. Along with these certain specified orders like maintaining hygienic conditions in and around the house, to wear masks, maintaining social distances from the other people, staying away from the huge crowds, total travel ban etc were brought in force to curb the menace of the COIVD-19 spread &  to maintain the health of general public throughout the country.

With the Lockdown 4 in force in the country and While 80 % of the lock down restrictions have been eased by the Central govt from 18th May 2020, the above orders issued in pursuance of COVID-19 attack have also been  eased and except few restrictions others all have been removed as soon as the Lockdown restrictions have been eased in the country. Thus from know onwards the Employers, companies or industries shall not be under the obligation to pay full salary, allowances, & wages to its employees, labors etc., Thus all actions taken from 18.05.2020 will be valid and will not be covered as protection under the Disaster Management act 2005 which was made available during the complete lock down situation.

EFFECT OF LABOR LAW AMENDMENT, 2020 Due to COVID 19 Lockdown Situation world wide and the shut down of all kinds of Business operation for a period of 50-60 days has given a tremendous impact on the Economy of the country overall. The govt. of India is trying hard & putting efforts to bring back the Economy. In this regard and support the Industries to bring back the Economy of the country, Central & Several state govts. have suspended the operation of labor laws in the country for a period of 3 years. Though the effort is made to bring back the Economy of the country to running position. The Effect of Abolition of Labor laws in this crisis may hit the country much harder than the COVID 19 impact. India is a country where nearly 500 millions work in the labor category and in the unorganized sectors. The Effect of the Amendments are the labor has to work more and earn less without safety. The Amendment of labor law leads to the Exploitation of the workers and labors leads to a situation that was in existence prior to the Indian Independence Era of a Kind of Inhuman Attitude towards labor and also violates the fundamental Right guaranteed under Art.19 of the Indian Constitution. The labors will be in a situation that they will not get the justice as envisaged under the Independent Indian Era. It may bring back again the situation of strikes and more of Trade Unions coming up in support of the cause of labors also which may give rise to the issues that the workers will not be attending to work and cause economic stagnation again. This is an Injustice on the part of labors. To protect the industries & Businesses the govt. is taking a long & wrong way ahead. The Principle of Survival of the Fittest applies, One who can influence the govt. can Survive. Thus the amendment to labor laws is taking away the rights of labors with whom the Industries & Business run and grow in all the ways.

LIST OF LABOR LAWS IN INDIA

Factories act 1948,

Contract labor (Abolition & Regulation) act 1970

Shops & commercial establishments act

Minimum wages act 1948

Payment of wages act 1936

Employees provident fund act 1952

The Workmen’s compensation act 1923

Employees state insurance act 1948

Industrial disputes act 1947

Industrial Establishment standing orders act 1946

The Apprentice act 1961

Maternity benefits act

Payment of Bonus act

Payment of gratuity act

Rights of persons with disabilities act

Trade union act

Unorganized workers social security act

Mines act

Child labor act

Cine workers & cinema theatre workers act

The Building & other Construction workers cess act

Bonded labor system(abolition)act 1976

Equal remuneration act 1976

Weekly holidays act

Plantation labor act

The Motor transport workers act

Beedi & cigar workers act

The inter-state Migrant workmen act

Sale promotion employees act

Employment exchange (Compulsory Notification of vacancies) act

Labor laws(Exemption from furnishing returns & maintaining registers by certain establishment act) 1988

Limestone & Dolomite mines labor welfare fund act

Iron ore, Manganese ore, Mines & chrome ore Mines labor welfare fund act,

SUPREME COURT TAKES UP SUO MOTO ACTION TO FASTEN THE CHEQUE BOUNCE CASES

Cheques are instruments issued in the process of Business transactions between two people or between the Companies for the financial transactions in respect of the buying and selling of the products and services. There are several cheques that have been used and issued in the business transactions sometimes also a way to defraud the other party to the transaction. Due to this business also run in loss. There are several cheque bounce cases going on in the court for several days and sometimes it takes years together as the party who has issued the cheque will either be dragging the case on one or the other ground or will try to avoid the further proceedings of the case to secure himself from the situation and to avoid the payment which was issued got default. Thus there are several cheque bounce cases pending before the courts of Magistrate, Highcourt and even supreme courts. Thus the Supreme court taking into consideration of all these issues has taken up the Suo Moto Writ petition to fasten the proceedings of the cheque Bounce cases and which is pending for hearing before the Supreme Court.

In view of the Cheque being used regularly in the Business transactions and later Business running in loss have huge impact on the business community and even the economy of the country. Thus Supreme court has requested RBI to come up with a new formats of Cheque to mention the purpose of the cheque used in the financial transactions.

Hope the best things come out of this and that helps the Public in large and also run the Business financial transactions successful.