Gujarat Buyers Linning up Eagerly to Take 5-6 BHK Flats.

AHMEDABAD: The great Gujarati joint family is urging topend realty. Amid buzz of stagnancy in city’s property market, super luxury apartments are selling like hot cakes. Realtors may struggle to sell 2 and 3 BHK homes, but buyers, mostly large joint families, are lining up to book 5 and 6BHK flats. In large flats of 5-6BHK flats, old people of the families feel more comfortable rather in bunglows. Take the case of ISCON group, which recently launched a residential scheme along SP Ring Road. While the entry-level three BHK flats generated least inquiries, all the top-end 5 BHK units were booked within days. “Those who could not get five BHK are going for 4 BHK units,” according to a survey. Looking at the response, Kotak now plans to convert 1 tower originally planned for entry-level flats into premium flats. Experts say the trend is inspiring as demand has been coming from local buyers besides NRIs and investors, who find Ahmedabad cheaper than other large Indian cities.

“Moreover these flats offer security along with luxury. Further, people who have stayed in 3-4 BHK and looking to upgrade are driving the demand for premium flats. So, no wonder 5-6 BHK apartments are being booked up like hot cakes,” says regional director (Gujarat) of real estate consultants. “A city based Businessman says that they sold off their bungalow and opted for a 5 bedroom flat because of security. He stays in that flat with his two sons. Ashish Shah of Shree Balaji Group got enormous response for the 5,100 sqft top-end flats as compared to other categories. Now, Shah plans to hold the remaining 6 BHK apartments till completion of project. “Demand for upmarket flats would remain high. Realtor Mukesh Goyal, who launched 4BHK scheme, for about INR 2 crore per unit at current market rates, in Prahaladnagar around a year ago has already sold 80 per cents flats.


Buying an Under – Constructed Flat.

A newly constructed home may have its own charm, especially when its price is yet to hit the roof. Many individuals take the risk of booking a house in an under-construction building mainly for the same reason. It fulfills the dream of owning a house, but is also cheaper than a ready for possession flat. However, reports about certain builders failing to complete the project on time have made many potential  home buyers apprehensive about booking a flat in an under-constructed project. Many also wonder if they should book a property whose final shape is still not known.

There is a biggest advantage of an under-construction flat that you can also get the flat customised as per  your needs. You can also choose the locality and the site of the house, direction and floor when the developer is about to start the project. Locating them is easy, given the large advertisement campaigns that usually accompany a just-launched project and you need not have to go through the brokers. However, it is always better to mull over few critical points before booking a flat in an under-constructed  project.

Sebi’s Refund Order Diverted

The Sahara Group had challenged Supreme Court against market regulator Sebi’s order asking it to return funds collected from investors through a scheme along with 15 pc interest. The matter to be listed for hearing on 04 July 2011, the first day after the vacations. Sahara India has critiqued market regulator’s move to make its order public when the matter is undecided before the Supreme Court. Sebi on 23 June 2011, had directed two Sahara group companies — Sahara India Real Estate Corp and Sahara Housing Investment to refund the money made from investors.

The Sahara group firm want directions to Sebi to remove the order from its website and restrain the market regulator and its officials from publicizing the order which it has challenged. The Sahara’s counsel argued that the company wants Sebi to obliterate the parts of the order directing it to return money with interest to the investors as it has created a panic among the investors.

Singapore Based Company to Invest in India

The CEO and country head of CapitaMalls Asia, Singapore-based develops, owns and manages malls across Asia, will invest INR 1,800 cr in India. He also said, “apart from funding the two malls that are operational now, this money would be also used to develop 07 another  malls in India.” The company has put-on 02 joint ventures in India, with Bangalore-based Prestige Estate Projects Ltd for projects in the South and with Advanced India Projects Ltd  for projects in the North.

The ventures now own the Forum Value Mall in Bangalore which was opened in 2009 and The Celebration Mall in Udaipur, early this year. The other committed projects in India are under different stages of development in Bangalore, Mangalore, Hyderabad, Mysore, Kochi, Jalandhar and Nagpur. These malls are scheduled to be operational between end-2012 and mid-2013.

Acron Infra Projects Constructing Residential Complex at Pune

Acron Infra Project, Mumbai-based developing company is building a large residential multiplex at Karvenagar which is in the heart of Pune, a 3-hrs drive from the metropolis of Mumbai. They are building a big, affordable residential complex with a total of 2,800 apts spread over a 24-acres green campus. The Director of Acron Group said the fund for the INR 800-cr project will be raised through internal accruals of the company and bookings.

This residential multplex will be developed in six phases.During the first phase, a total of four 25-storey buildings will be built within 18 months which includes 800 apartments. The two-bedroom apartments with an area of 900 sq ft at the rate of Rs 6,000-7,000 per sq ft will cost about INR 40 lac- Rs 50 lac. The registration and stamp duty will be an additional cost to the buyer. This project will develop eco-friendly apartments targeted at upper middle class home buyers looking for comfortable and affordable housing in the heart of the city and the housing complex will offer all the modern conveniences and amenities such as a clubhouse, swimming pool, jogging park, children’s park and a green surrounding environment.

With two decades of experience in construction, Acron Group brings to the table a wealth of experience, modern techniques, state of the art building materials and institutional knowledge, engineering, management, talent and skill, especially in the area of green building development. Acron group with branches in Bangalore and Goa is an EPC company engaged in real estate development, infrastructure and hotels.

The project has already begun and the apartments will be ready for possession on schedule. “We want our clients to appreciate that housing development happens at Acron Infra in tandem with nature,” Meghnani said.

Godrej Properties Stands Tall, But Weak Demand is a Concern.

Worried about economic and political factors influencing the real estate sector, investors have dumped real estate stocks in the past few months. The 15-member BSE realty index is down by 40 percent in past one year. The members of the index have had varying degrees of fall in their stock prices ranging between 8.5 percent and 81 percent during the same period. However, through all this, the Godrej Properties scrip has not only held its ground, but also registered 19 percent appreciation in price in the last one year.

One of the few business houses to be in real estate, Godrej Properties is a national real estate developer with presence across 11 cities in mid-income housing development. One of the biggest advantage enjoyed by the company is the equity of its brand “Godrej”. At a time when the sector is losing investor confidence due to some of its players’ supposed involvement in corruption, having a strong and reliable brand in the realty space could not have been more cherished by Godrej Properties.

Given the command of high interest rates, high influence is yet another issue for real estate companies. The low capital-intensive model is a good change over other capital-intensive companies. The fourth quarter ended March 2011 has been the best one for the company driven by sales from its projects in Ahmedabad and Gurgaon. The company is expected to launch 4.5-5.5 million square feet area in fiscal 2012.

Though, one of the concerns is its geographic concentration of the company’s landbank around half of which is located in Ahmedabad and another concern is the weak demand in Mumbai market where the company’s ambitious project ‘The Trees’ is being constructed at Vikhroli. The demand should recover by the next 02 years.

Realty Big Players Attracted Towards Small Cities for Expansion

NEW DELHI: Growing demand for homes in smaller cities of the country is attracting real estate biggies. Cities like Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow , Nagpur, Surat , Vadodara and Visakhapatnam are estimated to add 354 million sq ft of residential development in the coming 03 years. According to a research, large builders like DLF , Unitech , Parsvnath , Omaxe , Ansals and Emaar MGF have already diversified into these cities. These cities today show huge potential for growth. These cities are attracting the big developers because of their considerable price stability and growth prospects. With economic activity picking up in these cities, there is a growing migration from smaller areas, which has created a shift towards an apartment culture. This shift will foster volumes for larger developers in the future.

Looking at this new demand, banks and financial institutions are also looking towards these cities to bridge the financial saturation gap.The growth prospects in the smaller cities are fascinating huge developers with multi-city existance.

2BHKs at the Top of Sale Chart in Housing

The smaller apartments are selling big! Presently, the maximum demand is for 2BHK residential apartments and the supply is fullfiling this demand. No wonder, some developers claim 55-60 percent of their current inventories are 2BHK units, the GM – Marketing of Ashiana Housing Ltd., Atma Sharan, says the same, “About 55-60 per cent of our inventory comprises 2BHKs. It is definitely the fastest growing segment, particularly since for the first-home buyers as they are at the beginning of their careers and married life.”

The maximum demand for the 2-bedroom units is from the middle-income group nuclear families typically a middle-class salaried employee hailing across sectors, like government employees, school teachers, or employed in the BPO, IT, banking and service sectors. Also the middle level self-employed professionals. This is likely for nuclear families with small kids where a third bedroom is not a necessity and not worth the additional cost. A lot of developers, who were primarily focusing on luxurious housing earlier, have changed their focus to the smaller units as it is said that “the pot of gold lies at the bottom of the pyramid, and that is where everyone wants to get.” The 2BHKs are doing particularly well as they tend to attract the first time buyer who is young, has just married and taken the first few steps of his or her professional life.

Real Estate to Feel Rate Hike Tweak

The RBI’s decision to rise its policy rates, leading to hike in lending rates by banks, will adversely affect the sectors like real estate and automobile. These increases in the policy rates will raise the cost of properties as it increases cost of funds. The RBI’s hiking of the repo rate by 25 basis points is far from good news for the real estate sector, especially in terms of housing.

“Purchasing activity had already dropped, chances of minimising the property prices by developers to counter the negative effects of this hike depend on the financial ability of individual developers to hold on to their current pricing and risk losing sales till the situation improves.

Developers with enough capital as base are less likely to relent on their pricing than smaller developers with an urgent need to sell their inventories. The industry is already revolving under the high input costs and coupled with high sanction costs, it has to pass on the same to end user. However, hope is that the development will not discourage buyers of their buying decisions.

ICICI Bank , Country’s largest private sector bank, Managing director & CEO, Chanda Kochhar said that the RBI’s decision to increase the repo rate by another 25 bps and the existing systemic liquidity conditions could lead to an increase in funding costs for banks, and in lending rates.

RBI continues with its tight monetary policy to contain inflation. However, many analysts doubtes its efficiency to contain inflation. But, the measure will certainly affect the economic growth of the country.  The increase in the interest rates will not only make the loan costly but will also reduce the entitlement of credit of a debtor. According to banking norms, while approving loan to a borrower, bank see to it that the EMI on the loan should not exceed the 40% of the total monthly income of the family. As increase in interest rates will lead to rise in EMI and will bring down the claim of loan amount of a debtor on the same income.

Home Loan Rates Increases Tends to Increase Home Prices

NEW DELHI/MUMBAI: A 25 basis point rise in key interest rates by the Reserve Bank of India on Thursday is likely to further lower home sales across the country, some builders and bankers said in the midst of increase in bank rates. Customers will now have to reconsider the size and locations of houses they wish to purchase and many buyers are expected to put off their purchases altogether till home prices come down and rates stabilise. This is certainly bad news for existing home loan consumers as banks will certainly increase home loan rates.

Purchasing capacity had already gone down visibly during the last tranche of interest rate hikes, and we will see a further reduction in buyer interest. Owing to the last 10 rate hikes by RBI, EMIs for housing loans have risen 25 percent to INR980 per INR 1 lakh of borrowing, and consequently loan eligibility for homebuyers has declined by 20percent. Anil Kothuri, head of retail lending business at Edelweiss Group says, “Housing finance companies have no wriggle room available.” For new home loan seekers, this will be big warning, not just because of the rate hike but also because of the frequency of the rate hike by RBI. “The person who is looking to purchase a home has the option, of buying or not buying. Existing home loan customers are stuck. However, of the opinion of Renu Sud Karnad, Managing Director of HDFC, is that this quarter percentage hike will not impact housing demand and loan off-take.

Maharashtra Govt. Launches E-Portal for Building Plans

THANE : In a step that could lift the curtain of secrecy surrounding the process of construction projects, chief minister Prithviraj Chavan on Monday inaugurated a web-based portal for issuing clearances for new building plans.

The software of the portal is designed to issue timebound clearances.The commencement certificates has been the preferred project of Thane municipal commissioner R A Rajeev , who faced criticism from members of the standing committee at the time he was introducing the domain to the CM. The domain, “”, will improve clarity by permitting proposals for building projects to be sanctioned online in a specified time-frame.

A member of Shiv Sena opposed the manner in which the civic chief chose to “ignore” the elected council. Designed by software professional Prashant Ugemuge, Nagpur based, the portal will give the commissioner daily updates on the status of each proposal and can question any delay by the subordinate officials . In the beginning, proposals would now be examined by a surveyor or an assistant director online who will then put his seal of approval.

Brokers Hunt for Jobs as Slump Hits Realty Sales

NEW DELHI | BANGALORE: Broker in Bangalore bylane has just opened a stationery shop. He has named it ‘Smart Shop’, borrowing the name from the realty brokerage firm that he ran from the same premises until about two months ago. He switched to retail after his property business hit a rough patch following a slump in home sales. About 03-quarters of his revenues came from sale of apartments, the remaining from renting.

“With home sales dropping, it doesn’t make business sense anymore,” he says. It’s the same story in other big cities. In Mumbai, a mid-size broker has set up a small fast food joint to make ends meet. In Nagpur, a real estater has quit the real estate business and set up an ice-cream parlour. Their worries are not unfounded. While the large and established players in the property business have managed to stay, even during the slump, thousands of smaller players like brokers and agents are being forced to look for other jobs.

It also hit lakhs of people employed with such small outfits – each of which hires 5-15 people.With many brokers closing shops or reducing size, these people are out in the market, looking for jobs in sectors such as retail, banking, insurance and call centres. The real estate industry employs about 10 lakh people across the country, the majority in the unorganised sector.

In the first quarter of 2011, home sales dropped 17 per cent in Mumbai, 14 percent in Bangalore and 15 percent in Hyderabad. According to consultant Jones Lang La-Salle, unsold residential units in projects that are complete or are nearing completion in 6-12 months in Mumbai and Delhi-NCR are as high as 25 percent and 16 percent, respectively. In other big cities, including Bangalore, Chennai and Kolkata, the numbers range between 12 percent and 19 percent. Sales in tier-II and tier-III cities are steady, though there is some panic due to the increase in interest rates, which have climbed to about 11 percent from 8.25 percent a year ago.

“For smaller brokers, the impact of the current market factors is a lot more compared to the larger brokers,” says the president of the National Association of Realtors India . “Even for our members – who are fairly well-off – business is down 40 percent compared to 2009-10. But the smaller guys are in trouble and are setting up businesses that move on a daily basis. Many I know have asked their employees to look out” Ravindra Bramhe, chairman of the Maharashtra Property Brokers’ Association, says.

For whatever business is left in the market, there are hundreds of agents in queue. For instance, there are pockets on the Noida Expressway, near large projects, where real estate brokers can be seen sitting inside small tents, under the sweltering sun, waiting for business. Those who can’t afford to set up these tents can be seen on the roadside, running after every car that passes by, with brochures and flyers of projects in hand. Industry refers to them as the broker mandi. “All my friends and colleagues are now looking outside real estate before things get worse,” says Chaudhary. Many have returned to the insurance industry and others have found jobs with small call centres. A few have found employment with retail stores.

Realty Prices Peaking, Time to Sell Your House and a Correction in the Rancid

As property prices exceeds the 2008 peak levels, realty experts believe that a correction is possible in the next couple of quarters, especially in cities like Delhi and Mumbai where prices have grown up fast. This offers an opportunity to real estate investors to gain profits.

A Navi Mumbai-based marketing executive, Parvinder Singh Sidhu, agrees. Five years ago, he had bought a second home of 750-sq-ft flat at Belapur in Navi Mumbai for about Inr13 lakh. At present, the price of the flat is Inr35-40 lakh. However, with the talk of correction in the Mumbai property market, Sidhu is planning to sell this house and earn profits now. “I have a house to stay, so I can think of selling this one. If property rates come down in the future, I could buy a similar property at a lower price,” he says.

Is it really a good time to cash in on your real estate investment? Yashwant Dalal , president of the (EAAI) Estate Agents Association of India, says that property prices in many markets have begun to show signs of correction. ” Where the rates have peaked, we expect the prices to go down by 25-40% in metro cities. If you had bought a house previously just as an investment, I would suggest that you sell as soon as you can and buy a similar property at cheaper price later,” says Dalal. According to him, property bought even 03 years ago may have appreciated nearly 100-150 percent in some areas, so it may be a good time to book profits.

BAI Advices Maharashtra Government to Take Over SRA Redevelopment

MUMBAI: In view of the tremendous response received by state-run housing corporation MHADA for its offer of 4,034 houses under different categories, Builders Association of India has adviced the Maharashtra government to take control of the redevelopment of SRA schemes and nominate MHADA, MMRDA and CIDCO as the official agencies for redevelopment of slum. BAI Treasurer, Anand Gupta said, “MHADA, MMRDA and CIDCO like agencies could offer free rehabilitation houses to eligible slum residents by constructing multi – storied buildings as provided in the SRA Scheme. They can sell the balance area to all those applicants of MHADA flats who did not get allotment”. BAI has sent a written proposal to state government in this regard.

“Over 2 lakh people had applied for the 4,034 MHADA flats in May this year, and nearly 7 lakh home-seekers are expecting that they will get flats at very reasonable rates. Funding such projects will not be an issue since customers are ready to buy the houses at rates and terms of payment as announced by MHADA”. MHADA has a unique advantage, it has over a period of time collected a huge data base of home-seekers in Mumbai, which promises ready customers for affordable and mass housing segments.

All these Government bodies have made the mandatory consent by 70 percent slum residents will not be required. As per SRA record, 1,046 plots are available with state Government for redevelopment. That can house 3,70,000 flats of 430 square feet as per carpet area, and provide housing to six lac slum residents.

Real estate prices fly in Delhi, NCR

NEW DELHI: Real estate prices in some areas of the NCR glided high by 20 to 27%  in the first quarter of the current financial year as compared to the subsequent period of 2010-1. “Property prices for Delhi have seen boom if we compare per square feet prices of Q1-11 over Q1-10. Certain key areas like Sarita Vihar and Rohini have seen 27% and 20% growth respectivly in prices compared to prices over Q1-10”.

According to a report, the upward price sentiment would continue as the prices on average are hiking up by 15%. The South Delhi locality Sarita Vihar’s PSF prices rise by 27.60% at INR 8,110 as compared to Inr6,356 in the period of 2010-11, while north Delhi-based Rohini’s PSF prices increased by 25%. This is followed by Patparganj at a PSF price appreciation of 21.68%. Other localities like southwest Delhi-based Dwarka sub city’s PSF price also increased by 28 % in sector-11 and sector-2.

Realty prices in suburban NCR like Noida and Gurgaon also increased because of metro rail services came into operation. Prices per square feet in sector 110 and sector 93 of Noida also moved up by 16 %  and 11 % respectively,  as compared to prices in the corresponding period of last financial year. “Gurgaon witnessed an upgoing trend in property prices. Properties located on the Sohna Road and DLF City phase IV have seen the highest growth in prices by 46 % and 42 %, respectively, in Q1-11 over Q1-10”.


TPG purchases 15% in Shriram Properties

Texas Pacific Group Capital, a US-based private equity firm has taken up a 15% shareholding in Shriram Properties, the realty arm of diversified financial services group, forINR 450 crore. The transaction values the Bangalore-based developer at more than INR2,700 crore. TPG currently holds 49 percent shareholding in Shriram Retail Private Holdings and another 28 percent in Shriram Citi Union Finance. In March, the private equity firm had possessed the assets of Vishal Retail for INR 70 crore through Shriram Retail.

Shriram Properties said it would use the proceeds of the shares sale to venture into retail, hospitality and information technology parks, besides growing its base in the residential projects. “The money raised from private equity fund will also be used to purchase distraught assets in the market,” said M Murali. The company has postponed its proposed plans to increase money from the stock market this year. “We are in talks with builders for buying five projects in commercial and residential space,” Murali managing director of Shriram Properties said. Shriram’s move to diversify its asset portfolio comes at a time when developers are starting to push commercial assets such as retail, hotels and IT parks, riding on the back of economic recovery, to generate steady returns in the next couple of years.

Wealthy and Powerful Buyers of CWG Flats Paying Heavy Interest.

NEW DELHI: The group of wealthy and powerful people consisting of politicians, film stars, lawyers, bureaucrats, businessmen and top executives of multinational companies is fighting to gain custody of apartments in the heart of Delhi for some months now and there is no sign that a outcome is near. “We literally financed this project for the CWG, and now we are stuck, I put in all my hard earned money to buy a house here.”  said Dhiraj Mathur , one of the 280 people who purchased apartments in the Commonwealth Games village complex and an executive director at Pricewaterhouse Coopers.  These high-end apartments which were built to house the athletes of 2010 games, were sold for between INR2 crore and INR6 crore. But buyers were denied occupancy after charge of bribes in the Games surfaced.

“I used my life’s earnings to buy two apartments in the village as I did not have any property in Delhi”, who paid close to INR6 crore, said former cricketer and parliamentarian Navjot Singh Sidhu “. Had I invested this money elsewhere, I could have got a good return by now,” he added. About 280 buyers – including people like YC Deveshwar of ITC , danseuse Shovana Narayan, lawyer Rajiv Luthra, former finance secretary Ashok Jha and Attorney General Goolam E Vahanvati – paid close to INR 1,500 crore for these flats.

Many of the buyers had taken bank loans for the property and have been paying heavy interest for the past 03 years. Now, with the central bank having revised interest rates nine times in the past one year, their costs are mountaining. “I have been paying an average EMI (equated monthly installment) of about Rs 2 lakh for the past three years since I bought the flat. Right now, most of the EMI amount is going towards interest payment,” said an employee of IFC, New Delhi. He had bought a four-bedroom flat for about INR3 crore and had taken a loan of INR 2.25 crore from Citibank. In the last few months, his interest rate has gone up from the original 9.1 percent to 12.5 percent, increasing the interest factor in his EMIs by at least 30 percent. The apartments lie vacant, with no one to look after, with broken doors and windows that let in dogs and birds. They are in a state of disorder since the end of the games in October last year

GMR Declared Net Loss of Rs1,006.7 crore for 4th Quarter

GMR Infrastructure on Tuesday declared a consolidated net loss of Rs 1,006.7 crore for the fourth quarter ended March 31, on account of a one-time loss from its dissociate of power company InterGen NV and losses from its Delhi airport.

Losses from the Delhi airport stood at INR 214 crore for the quarter on higher capacity costs, including interest charges and depreciation, with Terminal-3 becoming operational during the financial year. GMR’s net revenue during the quarter increased 74% to INR1,962 crore over INR1,125 crore in the corresponding period last year. The growth was assisted by revenue from its Male airport, the increase in traffic at Hyderabad and Delhi airports and better operations in its Chennai and Kakinada power plants, the company said.

The losses from the InterGen dissociate and Delhi airport operations also diminished the full year performance of the company which posted a loss of INR 929 crore for 2010-2011 as against net profit of INR158 crore in the past year. Full year revenue, however, increased 26% to INR 5,773.8 crore with airports contributing 41%, energy business 38% and highways 7%. The chairman of the GMR group said,“Though the dissociate of InterGen has resulted in a one-time and non-recurring loss, it has released equity capital of INR 958 crore and would enable us to reinforce our focus and resources on more profitable Indian assets.” The company also expects to recover part of the loss through Island Power, which is Singapore-based electric utility.

Multi National Brands Walmart, Carrefour and Tesco May Soon Open Stores in India

NEW DELHI: Multinational retailers namely Walmart , Carrefour and Tesco may soon be allowed to open stores in India subject to inflexible investment norms, sourcing conditions, and cap on number of outlets in large cities. The Department of Industrial Policy and Promotion, or Dipp, is likely to move a proposal seeking cabinet’s consent for 51 percent FDI in multi-brand retail subject to an investment of at least USD 100 mn.

A draft structure has been prepared keeping sufficient safeguards to protect small shopkeepers, and to ensure that FDI actually helps in development of back-end infrastructure. The department has circulated a draft structure to a committee of secretaries, which will fine-tune it before a final cabinet note is moved. Multinational retailers will have to file a statement of account with the RBI and Foreign Investment Promotion Board showing the investment in back-end functions.

Proposals address states’ concerns “The government is very clear that FDI in multi-brand retail should create an employment on big scale and bring quality investment into the country resulting to development of back-end infrastructure,” the official said. For easier monitoring, the government will also allow back-end infrastructure to be executed through a dedicated unit. Multi-brand retail stores would be required to source at least 30 percent of their products, including food items, from small and medium enterprises, according to the draft structure.

Babus Turn Out to be Ingenious Investors.

NEW DELHI: Out of the 4,587 members of the IAS, about 660 has not filed their statements even on the last day for declaring immovable property.The statements posted on the department of personnel and training website shows how babus are clever investors since most of them own several properties, Greater Noida is the most preferred investment place, followed by other parts of the extensive and fast growing NCR.

Any senior bureaucrat on Central deputation owns a plot or flat or house in Greater Noida. It is also a favourite destination for babus of AGMUT cadre, who are usually posted in Delhi at some point of their careers.

Several officers, irrespective of their ranks, own several properties. However, there are certain exceptions among senior officials, whose returns show that neither they nor their spouses own any property. Many officers have not filled in the column on current market value on the plea that they have not determined it. There are some statements, which show suspect at first glance.

Former NDMC chairman Parimal Rai, who was one of the officers indicated in the Shunglu Commission report, has declared 08 properties, including 02 flats in posh area of Green Park. He has valued the flats at Rs 10 lakh each, which is out of sync with the prevailing property prices in the city. His other propertues include a four-bedroom deluxe flat in Lucknow, and a plot in Ghaziabad. A K Mehta, a J K cadre 1978 batch Joint Secretary in UUD ministry, owns 10 immovable properties, which are three plots – two of which are in Golf City (Noida sector 75) worth Rs 37 lakh each – and a property in a Dwarka mall worth Rs 16 lakh.