#RealtyNewsRoundup: CCI Slaps Rs 1-Cr Fine On GDA For Hiking Rates Of Property Meant For EWS Buyers

The Competition Commission (CCI) on February 28 imposed a penalty of Rs 1 crore, apart from a cease and desist order, on the Ghaziabad Development Authority (GDA) for “abuse of dominant position” in the sale of flats under a housing scheme meant for the economically weaker sections (EWS) . In Pratap Vihar Residential Housing Scheme, which has as many as 348 flats, rates of flats were increased from Rs 2 lakh in 2008 to Rs 7 lakh in 2015 by the GDA. The authority has yet to deliver the project.

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While the government has given high priority to the affordable housing segment, data reveal elevated risks in the segment for lenders because of a higher propensity among the borrowers to default. As against 1.96 per cent of overall home loans not repaid for over 90 days, the same for loans under Rs 25 lakh, classified as affordable housing, was 2.33 per cent as of November 2017, a report by rating agency Crif Highmark said on February 28.

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India Ratings and Research has maintained a stable outlook on the construction sector for the financial year 2018-19 on accelerated revenue growth due to increased spending by the Centre. According to the rating agency, a further improvement in the rating can be expected during the next fiscal as companies continue to record higher EBITDA (earnings before interest, tax, depreciation and amortisation) and generate free cash flow.

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After observing "some visible improvement" in Delhi's air quality, the Supreme Court-appointed Environment Pollution Control Authority (EPCA) on February 28 lifted the ban on diesel generators and brick kilns. The Badarpur power plant that was shut for over four months will also resume operations since the action plant category has been changed. Meanwhile, pollution levels, data show, remain high. In hot-spot areas, such as Anand Vihar, pollution levels are "extremely high".

Source: Media reports