Last Monday, Adi Godrej, Group Chairman of the realty developer Godrej Properties admitted that on June 30, their net debt was reduced to Rs. 4 billion. He added that the balance sheet is really comfortable with the debt equity ratio of 0.5: 1.
As per the data revealed by Managing Director of Godrej Properties, Milind Korde, there was a net debt of Rs 4.50 billion on the company in the end of the financial year 2009.
In December, Godrej Properties which is a unit of Godrej Industries was able to raise around 100 million dollar through its Initial Public Offering (IPO).The share of firm closed at Rs 690.40 per share which is a decline of 1.69%.
A draft bill on real estate regulator that will protect the interest of home buyers by ensuring a transparent and healthy real estate sector has drawn the anger of developers.
According to Mr. Kumar Gera, Chief-CREDAI, “The government is trying to play nanny to the home purchaser”.
According to the new bill, a builder will have to register a project with the regulator before he does marketting for the properties. For this, the builder will have to submit a documentary proof of land ownership and the mandatory licenses for registration.
After verification only, the entire information about the project will be available on the regulator’s Website that will be accessible to common people. The regulator will also scrutinize the advertisements and names of brokers.
This process will make certain the legitimacy and the viability of the project, ending the current practice of realty firms launching projects without land ownership or mandatory approvals that leads to buyers getting stuck with fake projects.
To bring in more transparency to its accounting procedure, Bangalore-based real estate developer Lalith Gangadhar Constructions will maintain an exclusive construction escrow account with Kotak Bank for the LGCL-Ashlar project it is developing in Garden City.
The Rs 150-crore project comprises 63 villas on 7.75 acres, each carrying a minimum price tag of Rs 2 crore.
The developer plans to launch two more luxury format projects. The company will keep the budgeted construction cost for the project in a separate construction escrow account from payments received from the home-buyers. The funds here will be used solely for project construction.