An insurance company can’t deny cover if money is paid but policy is not activated
An insurance company can’t deny cover if money is paid but policy is not activated
MahaRera Appellate Tribunal order dt 29 June 2020 holding that forfeiture of booking amount is bad as the customers are forced to sign on one sided clauses. Relying on SC judgement in Pioneer Land and Infrastructure Vs. Govindan Raghavan in Civil Appeal No.72238 of 2O78 decided on 2nd April 2019 by Supreme Court, directions to refund the booking amount of Rs.6.95 lacs towards 5 % flat value
This judgement now mandates that one sided clauses used to forfeit booking amounts will not be upheld by courts… Presumption of unfair negotiation and one sided clauses…
Another pro consumer and testing time for developers….
Nani Palkhivala is said to be one of the greatest lawyers, best CEOs, crusader for citizen’s rights, greatest orators and the one who got Supreme Court accept Basic Structure Doctrine (imposing limits on lawmakers on amending Constitution). Also known to be the best Law/ Finance Minister India never had.
Mitron app — the popular Indian alternative for TikTok — has been removed from Google Play store on Tuesday. The app had over 5 million downloads. As of now, neither Google nor Mitron has revealed details about the removal of the application from the Play store. However, chances are strong that the app has been taken down due to the security issues that indianexpress.com and other media houses reported earlier this week.
READ full report here | Mitron app is risky to use, says cyber security expert
If you have Mitron app installed on your phone we highly recommend uninstalling the app right away and not use it. We checked the Mitron app and found there’s no way you can delete your account from the app. Users can either log out of the app or simply uninstall it. The settings menu is also missing on the app now.
We also recommend you to beware of all the clones of Mitron available on Google Play store. You must always check the developer first before installing an app on your smartphone.
Fresh controversy after PMO rejected the RTI filed to know about the donation in the PM cares fund and what the money is being used for. The PMO said that the PM CARES fund is not a public authority hence it doesn’t come under the ambit of the RTI act.
Guest : Shailesh Gandhi, RTI Activist Javed Ansari, Senior Journalist Kailash Vasudev, Senior Advocate, SC
Please find below the links of Notice of Funding Opportunity (NOFOs) uploaded on grants.gov. Grants related queries may be addressed to MumbaiGrants@state.gov
U.S. Consulate General Mumbai
Public Affairs Section
U.S. Consulate General, Mumbai
C-49, G Block, Bandra Kurla Complex
Mumbai 400 051, INDIA
This email is unclassified based on the definitions provided in E.O. 13526
If anyone has relatives abroad who need to return to India this is air India flights schedule
Click Here for the Flight Plans
Indian nationals stranded in Australia due to COVID19 and with compelling needs to travel to India are advised to register themselves and submit required details in the following link
Registration closes 10th May
Those nationals who have individually contacted the Mission/Posts earlier for assistance are also requested to register themselves using the above link.
It may be noted that the purpose of the exercise is only to collect details for planning purposes and no decision has been taken yet regarding the operation of any flights from Australia to India. As and when a decision is taken by the Government of India in this regard, the Consulate will make an announcement on its website and its social media accounts.
COMMERCIAL CONTRACTS AND CHALLENGES ARISING FROM THE COVID 19 PANDEMIC
On 07th May 2020 at 6.30 pm – By ADVOCATE MR. ZERICK DASTUR
Click Here to join https://zoom.us/j/8487251418
In association with Consumer Resources & ON-LYNE
The unprecedented situation in view of the pandemic and the consequent lockdown imposed by the Government of India has impacted the performance of many commercial contracts and posed a number of questions on the rights and obligations of the parties to a contract. The webinar will address the following topics :
1. Force Majeure and Frustration of Contract – Recognizing your contractual rights, Risk Assessment and Risk Management.
2. “Once bitten twice shy” – The approach to adopt while entering into future contracts.
3. Analyzing the present legal scenario, the views adopted by Indian Courts and the recent measures undertaken by the Government across various sectors.
4. Position on employee payments during lockdown.
The Real Estate sector in India has been experiencing a downturn for quite some time. Severe liquidity crunch has plagued this sector and so have policy reforms, legislations and structural changes. These issues were merely the tip of the iceberg, as the Covid – 19 virus opened up a new front for the real estate sector.
Propelled by the burgeoning crisis, the Confederation of Real Estate Developers Association of India (“CREDAI”) requested the Ministry of Housing and Urban Affairs to include Covid -19 as a condition of force majeure under Section 6 of the Real Estate (Regulation and Development) Act, 2016 (“RERA”) and that loans by real estate developers should not be classified as Non-Performing Assets in case of default on interest or principal repayment.
Force Majeure under RERA
Section 6 of RERA provides that if an event of force majeure (i.e. a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project) occurs, then on an application made by the promoter, the authority after considering the facts of the particular case (including that there was no default on the part of the promoter) can extend the registration for not more than one year.
It can be argued that Covid – 19 could possibly be included in “any other calamity caused by nature” in the explanation to the section. It is pertinent to note that Ministry of Finance, Department of Expenditure Procurement and Policy decision vide its office memorandum dated 19th February, 2020 clarified that the disruption of the supply chain as result of the spread of corona virus should be considered as a case of “natural calamity” and force majeure clause may be invoked.
The above section merely enjoins a delay in the performance of the contract and does not release the developer from its contractual obligations. The above section also makes it abundantly clear that facts of each case would be considered separately, and decisions taken. The period of extension in the case of Covid – 19 could possibly be not more that 3 to 4 months.
Various remedial steps taken by statutory and regulatory authorities to alleviate the difficulties of the Real Estate Sector
Ø The Maharashtra Real Estate Regulatory Authority vide an Order dated 2nd April, 2020 inter alia relying on section 6 of RERA, extended the period of validity for registration of MahaRERA Registered projects where completion date, revised completion date or extended completion date expires on or after 15th March 2020 by three months. Further, the time limits of all the statutory compliances, which were due in March / April / May was also extended to June 30, 2020.
Ø The Karnataka Real Estate Regulatory Authority vide a circular dated 4th April, 2020 extended the period of validity for registration of K-RERA Registered projects where completion date (including revised completion date) expires on or after 15th March 2020 by three months. Further, the time limits of all the statutory compliances, which were due in March / April / May was also extended to June 30, 2020.
Ø The Uttar Pradesh Real Estate Regulatory Authority on 14th April, 2020 has decided to extend by three months the date of completion of the projects where the date of completion is between March 15, 2020 and December 31, 2020.
Ø The Reserve Bank of India (“RBI”) vide a press release dated 27th March, 2020 has directed all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. Further, in respect of working capital facilities sanctioned in the form of cash credit/overdraft, lending institutions have been permitted to allow a deferment of three months on payment of interest in respect of all such facilities outstanding as on March 1, 2020. It has also been clarified that moratorium/deferment provided will not result in asset classification downgrade.
As per the statement of the Governor (RBI) dated 17th April, 2020, it has been decided that in respect of all accounts for which lending institutions decide to grant moratorium or deferment, and which were standard as on March 1, 2020, the 90-day NPA norm will exclude the moratorium period. Further, the RBI allowed non-bank financial companies to extend the date for commencement of commercial operations (DCCO) for loans given to commercial real estate by additional one year, over and above the one-year extension permitted in normal course, without considering it as restructuring. Banks had been directed to provide similar relief earlier.
Ø The Securities Exchange Board of India vide a circular dated 23rd March, 2020 has extended the due date for regulatory filings and compliances for Real Estate Investment Trusts and Infrastructure Investment Trusts for the period ending March 31, 2020 by one month over and above the timelines, prescribed under SEBI (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations) and SEBI (Real estate Investment Trusts) Regulations, 2014 (REIT Regulations) and circulars issued thereunder.
Relaxation on Construction activities
By an Order dated 15th April, 2020, the Ministry of Home Affairs has issued detailed guidelines for allowing certain additional activities to be undertaken from 20th Aril, 2020 in non – containment zones (containment zones are required to be demarcated by the respective States and Union Territories) across India, subject to all preparatory arrangements with regard to social distancing being implemented. One of these additional activities include certain construction activities which are as follows:
Ø Construction of roads, irrigation projects, buildings and all kinds of industrial projects, including MSMEs, in rural areas, i.e., outside the limits of municipal corporations and municipalities; and all kinds of projects in industrial estates.
Ø Construction of renewable energy projects.
Ø Continuation of works in construction projects, within the limits of municipal corporations and municipalities, where workers are available on site and no workers are required to be brought in from outside (in situ construction).
Each State and Union Territory in the country will decide in which areas and to what extent the above activities can be allowed. However, this may relieve some pressure from the real estate sector. It remains to be seen whether real estate hotspots like Mumbai, Delhi and Bangalore will be permitted to allow construction activities considering that they are Covid-19 hotspots as well.
As can be seen from the above discussion, the situation with respect to Covid -19 is dynamic, and the real estate sector paradigm is bound to change as a result. Therefore, we will keep you updated in case of any further decisions, measures, notifications by the Government and other authorities with respect to the real estate sector.
We trust that the above update is helpful for you. If you require any further clarifications, please feel free to contact us.
Zerick Dastur <email@example.com>
Anti Vaccine campaign