News Roundup: Gurgaon Developers Fined To Policy Making Redevelopment Projects In Mumbai Unviable

In a move that could possibly give a boost to the realty sector in Maharashtra, the state government on May 11, 2015, said it wishes to launch a scheme to eliminate slums in cities like Kolhapur, by building pucca homes.

Here are the other stories of the day related to real estate: The Haryana State Pollution Control Board fined 15 developers for violation the construction norms of the MoEF. French luxury conglomerate LVMH Moet Hennessy Louis Vuitton might no longer work together with the real estate major DLF. According to the National Real Estate Development Council (NAREDCO), the Maharashtra government's decision to base the new ready reckoner rates on the raised FSI makes redevelopment projects unviable.

Now, read the stories in detail:

1. The Haryana State Pollution Control Board (HSPCB) fined 15 developers in Gurgaon Rs. 2.5 lakh each for violating the 2010 construction guidelines of the ministry of environment and forest (MoEF). The HSPCB said if the developers who undertake projects in Gurgaon do not stick to the guidelines, their construction sites would be sealed. When HSPCB inspected 21 construction sites, 15 of them had violated the construction guidelines. The National Green Tribunal had directed pollution control boards in Delhi-NCR to inspect construction sites and impose penalties on developers that violate the norms. 
    
2. French luxury conglomerate LVMH Moet Hennessy Louis Vuitton might snap ties with the real estate major DLF. Arvind, led by Textile tycoon Sanjay Lalbhai, might take over the Indian operations of cosmetics and beauty retailer Sephora. Sephora is owned by the French luxury conglomerate LVMH Moet Hennessy Louis Vuitton. DLF now manages Sephora through DLF Brands, its retail arm.

3. The Maharashtra government plans to launch a scheme to provide pucca homes to slum dwellers in cities like Kolhapur. The state government had earlier launched similar schemes in Mumbai and Pune. The earlier attempts of the state government to eliminate slums were not successful because they were modelled on their experiences in larger cities, the state cooperation and district guardian minister Chandrakant Patil told The Times Of India.

4. According to developers' umbrella body NAREDCO, the Maharashtra government's decision to raise the premium floor space index (FSI) from 30% to 60% and base the new ready reckoner (RR) rates on this is making redevelopment projects in Mumbai unviable. Sunil Mantri, president of NAREDCO, said redevelopment projects in Mumbai will no longer be viable because the costs have risen manifold.