FAQ on Special Window Fund for financing Stalled Affordable and middle income housing projects

Dear CA friends, 

Greetings from CA Shilpa Shinagare !!!

In my endeavour to keep  you posted and to keep you involved in the most happening real estate  sector, today, I am sharing with you FAQ released on 7th Nov.2019  by Press Information Bearow on establishment of a 'Special Window' fund approved by Union Cabinet on 6th Nov.2019 to provide priority debt financing for the completion of stalled housing projects that are in the Affordable and Middle-Income Housing sector.

For the purposes of the fund, the government shall act as the Sponsor and the total commitment to be infused by the Government would be up to INR 10,000 crore.

The fund will be set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run.

For the first AIF under the Special Window, it is proposed that SBICAP Ventures Limited shall be engaged to be the Investment Manager.

This fund would in turn would provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers.

Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.

Background

The Hon'ble Finance Minister on September 14, 2019 had announced that a special window for affordable and middle-income housing will be created. This special window will provide last mile funding for housing projects which are stressed.

Subsequently, Inter-ministerial consultations and several stakeholder consultations were held with the housing industry including Housing Finance Companies, Banks, NBFCs, Investors, and Real Estate Developers. Problems being faced by home buyers, developers, lenders, and investors were ascertained that could be addressed through the Special Window.

Pls click on the below link to access the FAQ related to this Special Window Fund

https://drive.google.com/file/d/1BOO36otWaJF6kVVVu8un41xGNQ4rGmhc/view?usp=drivesdk

Keep watching me on YouTube for my educational videos and keep following me on my blog cashilpashinagarerealcoopinfo.blogspot.com 

My website cashilpashinagare.inwill be live soon with lot of resource material related to Cooperatives , rera and other allied laws so do visit that too once it is launched .

Keep exploring the Unexplored !!!

CA Shilpa Shinagare

President - V Indus Societies Welfare Association

Cell: 9820053395/53495

Email: ssca28@rediffmail.com 

Enroll for Mega Housing Society Conference on 17.11.2019 organised by Sahakari Bharati at Goregaon Nesco Mumbai

Dear esteemed CHS Members,

*📣Enroll for Housing Society Mega Conference arranged  4 U*

MH level Housing Societies Mega Conference is organised by *Sahakari Bharati , the mass organisation of Cooperatives and Cooperators*

*Date*: 17.11.2019 Sunday

*Venue* : NESCO Exhibition Centre, Air Conditioned Hall No.5,
Goregaon (East), Mumbai (Opp. Mahananda Dairy on Western Express High Way

*Time* : 9 am to 6pm
 
*Fees* : Rs. 250/- Per Delegate  (including tea, snacks, lunch and conference kits/notes/participation/attendance certificate)

*Mode of payment* : Cheque/Draft for the fees should be drawn in favor of *Sahkar Bharati Trust, payable at Mumbai* 

 *RTGS/NEFT* on the details of the bank given below.

*Account Name* : Sahakar Bharati Trust,

*Name of the Bank* : Mumbai District Central Co-op. Bank

*Branch* : Bandra (East)

*Saving Bank Account* No. 00391001001908 *IFSC*  : MDCB0680039


*For Online Registration and Payment*

 *visit* www.sahakarbharati.org

*Topics Covered*:
👉Overview of MCS Act, Rules and Bye laws
👉Society Management & Redressal of  Issues
👉Conveyance
👉 Redevelopment
👉Waste Management
👉Structural Audit
👉Taxation and other compliances

*Why to Attend ?*
To utilise the education and training fund which CHS are collecting from members

*Who should attend* ?
CHS Members, Managing Committe members, Society managers, Coop practitioners, Auditors and support service providers

*Who Should financially Support this event ?*
👉 Bankers
👉Business Houses
👉CSR Companies
👉Startups
👉Budding Entrepreneurs
👉Professionals
👉Consultants and support service business units

*Takeaways*:
👉Participation or Training Certificate
👉 Souvenir enriched with valuable  articles by CHS experts
👉 Conference kit
👉Enlarged Knowledge base
👉Esteemed Speakers
👉Presence of Esteemed Dignitaries from Coop Sector
👉Representations on CHS Issues  that are going to be handed over to the ministry people.
👉Spirit of Cooperation

👉 Grow your business and increase  your visibility by supporting  the event  through
*Sponsorships*
*Banners*, *Advertisement in souvenir* etc

*For enquiries and offline registration*
Reach CA Shilpa Shinagare on *9820053395 or call up at 022-29663495 between 11am to 6pm*

*👉Enroll in large Nos* and support the event by showing spirit of cooperation .

*👉Treat this post as a personal invitation🙏*

Jai Sahakar !

*CA Shilpa Shinagare*
President V Indus Societies Welfare Association (VISWA)

Draft Election Rules for CHS less than 250 members open for public objections and suggestions

Dear friends, 

Greetings from CA Shilpa Shinagare !!!

As you all are aware that the elections to managing committee of CHS with 250 or  less than 250 members are postponed till 31st Dec.2019 for the want of Election rules to that effect.

Now, MH Govt.on 25th Oct 2019 has notified the Draft election rules which are open for public objections and suggestions till 25th Nov.2019.

Pls click the below link to access these draft election rules for CHS of 250 or less than 250 members .

https://drive.google.com/file/d/11Z-TtYj2Zj2dw2CEbmJcjtxMTbQtFGmJ/view?usp=drivesdk

Requesting all to please go through the same and reach me on chsmatter4cashilpa@gmail.com with subject - objection/suggestion  on Draft election rules .

Your suggestions and feedback on my postings and content therein is welcome.

Keep watching me on YouTube and keep following me on my blog cashilpashinagarerealcoopinfo.blogspot.com.

You may reach me on 9820053395/53595 for Ur queries preferably between 2 to 3 pm 

Be happy and be healthy !!!

PMC Bank News- Piece of Advice by CA Shilpa's VISWA on Panicky situation faced by CHS

Dear esteemed CA members of CHS,

Greetings from CA Shilpa Shinagare!

After the Punjab and Maharashtra Coop Bank i.e. PMC is brought under 35A direction by RBI, there is panicky situation among the Co-operative housing societies who must have held their term deposits and operating savings accounts or either of them.

We started getting emails and calls from MC members on this crisis situation and hence thought of clarifying certain provisions wrt opening of bank account and also investing the surplus of a cooperative housing society.

These provisions are covered by *Sec.70 of MCS Act* on Investments of the funds, the *bye law no.113 on opening of bank account* and Coop Dept *Cir Dtd.05.12.2013* allowing the Coop banks to open an account in nationalised bank rather than previous mandate of having it with a cooperative bank only.

As per model Bye law No.113 of CHS, the bank account can be opened in the nearest *State or Dist Coop Bank or a Scheduled Bank having awarded "A" audit classification in last 3 consecutive years*, *nationalised bank* and *any other mode* as permitted u/s 70 which talks about investments in securities as mentioned u/s 20 of Indian Public Trust Act.

So, ideally *private banks are not reffered and hence in my opinion opening of bank account with private bank is not desired and not allowed.*

 The housing societies, therefore, should take a collective decision on what sort of option they are going for wrt opening of operative account and the investments.

It's my humble submission that the *Managing Committee should take the general body approval* whenever they are *parking or shifting their funds* with a Coop bank and if its being properly discussed and minutised then it can save them from future eventualities like this.

Also, as the saying goes, *you should never put all Ur eggs  in one basket* , the managing committee is advised to study, analyse , follow Sec.70 norms and then only select the good , reputed and criteria compliant  cooperative banks for their investments .

Also, *tax planning wrt Interest income* is another aspect which is being considered or is being advised by the professionals since *nationalised bank FD income is fully taxable* whereas for *Cooperative Bank FD interest, the societies can claim 100% deduction of interest income u/s 80P* and that saves the tax for the CHS. But, this aspect also, it's advisible to be got it *approved through *general body* to save the future responsibilities as far as MC is concerned.

Going one step further, the *recent amendment in Sec.20 of Indian Public Trust, the cooperatives can now invest in mutual funds* also, however, while advising the MC of the societies, *we advise them not to opt for this option upfront or opt only after getting it approved from the General body* making then aware about the pros and cons and *subject to market risk* disclaimer etc.

Also, the *investments in Mutual Fund can be restricted to Debt Funds* in my opinion and this thought of mine was upheld by the coop dept officials in our housing chapter committee meetings and infact the then secretary cooperation has unfact advised me to work on this and give an outline so that dept can come out with a notification accordingly for safeguarding the financial assets of the CHS.

In nutshell, the managing committee members are advised *not to go overboard* and *too aggressive* as far as investing the funds of CHS are concerned as the *General body has to be taken in confidence.*

The *statutory and internal auditors* are advised to give the *alerts and red flags* to the managing committee *well in advance* and make a *valuable addition* to their job profiles.

Cooperatives, esp the housing society is an *unorganised sector and hence the professionals like CAs as an auditor, legal and management consultants should be appointed and should be taken on board  by the CHS.

 *Professional Management* is something which is one of the *principles of Cooperation* and is being visualised or thought of by the government also while going for *constitutional amendment in 2012.*

The Co-operative societies are *advised to spend time on compliances and invest in good human resources* as well...that the need of the hour.

Last, but not the least, it's *not only the concern of managing committee* members but it should be *UR Own Concern* when it comes to running the show of a CHS and hence, *Co-operate, Collaborate add Co-exist*...Let's *enjoy every bit* of it *leaving the bitterness* aside.

Jai Sahakar!!!

CA Shilpa Shinagare

President - V Indus Cooperative Societies Welfare Association *VISWA*

Cell: 9820053395/53495

Email: chsmatter4cashilpa@gmail.com

Self Redevelopment GR benefits to CHS -13.09.2019

Dear Friends,

As a matter of a move to make the CHS happy and as a matter of policy to boost the Self Redevelopment in the old and dilipidated CHS , the MH Govt.has come out with a GR on various proposed benefits and concessions which a Coop Housing Society  Housing can avail if theybare going for Self  Redevelopment .

Some of highlights of Directives for old and dilapidated buildings for more than 30 years old are as follows:

- one window system
- approvals in 6 months
- increase in FSI by 10%
- Plots falling on road less than 9 mtrs can also go for self redevelopment with 0.4 FSI with no premium.
- 50% rebate for TDR
- discount on premiums to be given
- instalments for paying premiums instead of down payment.
- concessions on LUC tax
- concessions in Stamp Duty
- concession in GST
- reduce in open space deficiency premium
- District central bank to act as nodal agencies
- project to be completed in 3 years
- 4% subsidy on interest, thus now interest will be 8.5% p.a.
- tri partiate agreement to be made between Bank, Society & Contractor
 - For quality construction - atleast 3 members committee to be formed -  2 members from society and 1 from Bank.
- special grievance Redressal committee to be formed for any problems/ grievances/ complaints.
- Contractors to be registered
- contractors to submit 3 years balance sheet

Please click on the link below to access the GR which is in Marathi .
https://drive.google.com/file/d/1syFvPz326j5Sx8SovNCCNB_hVvePPBlH/view?usp=drivesdk

Please feel free to reach me on ssca28@rediffmail.com with your general queries on this GR .

You may reach me on 9820053395/53495 between 6pm to 7.30pm

Best Regards
CA Shilpa Shinagare
President - V Indus Societies Welfare Association 

Stamp Duty Penalty Reduction Amnesty Extention GR Dtd.31.08.2019

Dear friends,

Pls click on the below link to access the GR Dtd.31.08.2019 on Extention of  Stamp Duty Penalty Reduction Amnesty scheme . The scheme now will be available upto 31st Dec.2019. The cabinet decision on the same is already shared by me on this blog and through my whatsapp and google updates.

Kindly note that the Amnesty scheme is being extended to cover non residential units i.e shops in a cooperative housing society , however , the private bunglows and the row houses in a CHS, industrial units in industrial estates and units in premises type of  coop society are still kept out of the scheme .

Requesting the eligible and interested persons to take maximum advantage of this extended period .

https://drive.google.com/file/d/1vcRi0O6Cd62mOmv0CsIaAUfbD-eYcEJy/view?usp=drivesdk
Any further clarification on the said scheme you may approach me on ssca28@rediffmail.com or call me on 9820053395/53495 between 1 to 2pm please.

CA Shilpa Shinagare
President- V Indus Societies Welfare Association

CHS Elections Notification 07.09.2019 extention of Existing MC

Dear Friends,

PFA herewith MH Govt Notification Dtd.07.09.2019 extending the term of CHS Managing committee till 31st Dec.2019, in cases where the term of the existing managing committee is over for the CHS with 250 and below members.

As per recent amendment in MCS Act, 1960 , the elections to the CHS with 250 and below members are to be conducted internally as prescribed by rules and till the new rules are introduced specifying the procedure on how to conduct these elections internally, the MH Govt has issued this notification allowing the existing managing committee to continue upto 31st Dec.2019 where the term of the managing committee is over .

Pls access the notification by clicking on the below link.
https://drive.google.com/file/d/1S_ottpavIPkvWINHRaTAdj0CY55UUD3e/view?usp=drivesdk

For further clarification on the same you may reach me on ssca28@rediffmail.com with a subject line " Election Notification" or any other issue .Ur issues should be general anf briefly stated in mail .

You may also call me on 9820053395/53495 between 5 to 7pm and if the call us nonot answered then simply drop a message .

Best Regards
CA Shilpa Shinagare
President - V indus Societies Welfare Association