Connect with us

Economy & Market

Mediation in real estate sector

Published

on

Shares

Implicit or explicit agreements are a way of human life; contracts, written and unwritten, pervade our day to day lives, and govern our relationships, interactions and transactions. And, as long as there will exist contracts, there will be scope of disagreements and disputes, simply because, no agreement can be so detailed as to cover all possibilities and connotations, and close all loopholes for disputes. Conflicts inevitably arise due to opposing interpretations of open-ended or subjective clauses, occurrence of unforeseen events, situations going beyond the control of either party, loss of trust, bankruptcy, inadequate upfront disclosures and such other issues. Disputes fester until resolved, and therefore, dispute resolution mechanisms assume great relevance in our lives, businesses and society as a whole.
Historically, in India we have been too much over dependent on the formal justice systems, meaning the courts, and have somehow not given alternate/informal resolution of disputes the place that these deserve. May be this is due to the hangover of our colonial legal systems, or perhaps due to absence of enabling legislation or even due to our cultural biases. In any case, the result has been a huge backlog of cases in civil suits and criminal cases clogging up the judicial pipeline up to the Supreme Court, leading to the unfortunate phenomenon of justice being inordinately delayed, and thus effectively denied.Real estate/construction sector:The context
The total number of cases pending in our courts is in excess of three crore. The real estate industry in India has more than its rightful share of unfulfilled promises, delayed payments and/ or deliveries, intransparent regulations, cases of apparent abuses of dominance, reported non-compliances, defects in construction quality, commercial issues around valuations, taxes, etc., – all giving rise to obvious disputes and consequent litigations moving at a slow pace through our labyrinthine adjudication processes, such that the litigants’ grandchildren ultimately settle suits filed by their grandfathers.
If we were to expand the domain of real estate to include all land and immovable properties, the intensity of real estate disputes in family as well as corporate sectors will appear to be mind boggling. Given this stifling ambience, the sector was ripe for some interventions and disruptive regulatory changes. And, these have now arrived in the form of Real Estate Investment Trust (REIT) and Real Estate Regulation Bill. Although some of the rules/ clarifications are still awaited, and the Regulator Bill will only have teeth once all the states get their act in place by appointing the regulators, one must accept that these are very welcome developments which may nip some of the potential litigations in the bud. But this will only be clear as things unfold around these regulations.
Besides these regulatory developments, we also have a very healthy and active Competition Commission and Consumer Courts, both of whom have been seen to be visibly active and supportive of the consumers. The welcome entry of private equity/foreign institutional investors in the real estate space will no doubt force improvements in governance standards in the sector. All these augur well for the future, although the present situation remains dismal and disappointing, to say the least.Diverse stakeholders
In this scenario, congested with disputes and litigations, the thought of mediation comes along as a whiff of fresh air. Any process of dispute resolution which works on the principle of the disputants working together to arrive at an amicable win-win solution and an agreement that normally is not up for further court room activity, has to be like a god-sent tool! However, considering that the sector has a very diverse group of stakeholders pulling apart vigorously in different directions, it may not be an easy going journey for mediation.Who are the stakeholders? These are :
– Developers
– Contractors
– Consumers/buyers
– Land owners/farmers
– Landlords and tenants
– Regulators
– Special interest groups/NGO’s
– Lawyers and judges and arbitrators
For obvious reasons, some of the stakeholder groups might find it in their interest if the current spate of litigations continue unabated. To break this traditional pattern, some more disruptive interventions are required to change the mindsets.Possible role of mediation: How is it different?
In recent years, our world, and our society have witnessed a dramatic increase in litigation. Going to the courts to resolve disputes seems to be an almost instinctive reaction of our citizens. However, the underlying reality is that lawsuits can be financially and emotionally challenging for all the litigants, and can even have an adverse impact on our economic progress over the long-run, particularly when they immobilise businesses. While buyers and sellers of real estate usually are able to settle the smaller irritants that come up in the course of their deals, sadly many other disputes end up in the courts.
Fortunately, there are healthier alternatives to litigation for resolving disputes. Mediation is one such option that is growing rapidly in popularity in the developed economies-a path that has the potential to dramatically reduce the time and cost of resolving disputes. Mediation can be the first step of resolution between the parties.
Mediation is the term used to describe a relatively informal form of dispute resolution that occurs outside of the dysfunctional court system. In mediation, the parties are facilitated by a neutral third person called a mediator. The mediator is not authorised to impose a decision on the parties or even suggest settlements; instead the mediator only catalyses/ promotes negotiation between the disputants with the aim of helping them in reaching a mutually acceptable settlement of their dispute.
To understand how mediation is different from other dispute resolution processes, it is helpful to keep in mind that both litigation as well as arbitration are adjudicatory in nature wherein an empowered body/person(s) decide the outcome. In both these processes, the disputants automatically take up adversarial positions which lead to loss of trust and fissures in relationships. Perhaps the most attractive aspect of mediation which scores over the other choices (arbitration or litigation ) is that here, the disputants find no need to resort to appeals and prolong the dispute, since the settlement arrived at is mutually agrreable! So, it is clearly seen that mediation should be the first choice of people in the Real estate sector. But what needs to be done to popularise this mode of alternate dispute resolution?Way ahead
The following lines of actions can be recommended to make mediation the first choice of all parties:
1. Increase awareness about mediation, its positive effects, and why is it far far better than the traditional channels of adjudication that we know of. For this, a professionally designed communication campaign must be put in place by the government, the bigger corporate in the sector, the industry bodies and chambers, the large law firms, all acting together. For this purpose, an appropriate body may be formed by the Ministry to coordinate all aspects of this promotion drive, something similar to the PCRA or BEE, supported by a strong communication strategy and a commensurate budget.
2. We have to also nudge people towards mediation; for this, subject to legality, the government may make it mandatory/ recommendatory for all contracts/ agreements to have a clause stipulating mediation as the compulsory first stop in case of any disputes, much like the position enjoyed by the arbitration clause today. It has to be seen if this would require the passing of an appropriate act on mediation or not.
3. Thirdly, we have to strive to make mediation as friendly, soothing and as non-adversarial in reality, as it promises to be in theory. This can only be achieved if we avoid people with traditionally adjudicatory mindsets (such as most judges) who come from a position of power and authority, as well as people with deep-seated adversarial mindsets (such as most lawyers), as we create a facilitating kind of mediation universe in our country. Evidently, we do not need professionally judgemental personalities in this business, because a Mediator has to be the exact opposite of being judgemental. Obviously, people with insights into people’s mind, like those with education in behavioural sciences, and people with a negotiators bent of mind, like qualified interlocutors, as well as domain experts in relevant fields of dispute who, with their expertise will be able to quickly open up new and unseen opportunities of resolution, are the right kind of people to populate the roles of mediators. Anything less, will make Mediation stumble early on its journey, and it may quickly lose its appeal instead of gaining ground.
One can only earnestly hope that someone somewhere is listening, and will perhaps, consider to act on these suggestions.– SUMIT BANERJEE

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

Published

on

By

Shares

Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

Continue Reading

Concrete

WCA Welcomes SiloConnect as associate corporate member

Published

on

By

Shares

The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

Continue Reading

Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

Published

on

By

Shares

TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

Continue Reading

Video Thumbnail
â–¶

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds