Monthly Archives: March 2012

Buyers back in Real Estate Sector this Navaratra.

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Buyers are back in the realty market this Navaratra, lending credence to this festive season’s reputation as a golden period for business in this sector.

There is flurry of activity in the offices of realty firms as buyers are coming out to seal deals. The mood is likely to remain upbeat till the end of summer vacation of schools.

“I am sure that this positive momentum in the market will continue till summer vacation when even more end users are likely to clinch deals,” Samir Jasuja, the chairman and managing director of Prop Equity, says.

“After Navaratra, summer vacation in schools is regarded a good time for realty, as people wait for the end of term of their children to shift houses or buy one. The summer is a time of transfers and relocation; a time of school admissions and hunting for a house near schools, so that children can have an easy commute,” Jasuja says.

Gaurav Mittal, the managing director of CHD Developers, says: “The mood is really upbeat in the market with people finalizing deals in property. While market warms up during Navaratras even during bad times, this Navaratra is different. The quantum of deals is unexpected, though a welcome development.”

Jasuja says, “Notwithstanding a slew of legal battles, buyers are taking a final call on their new purchases in Noida and Greater Noida.” A report of Prop Equity says that the current financial year has proved to be good for almost all the big cities of the NCR including, Noida, Gurgaon, Ghaziabad, Greater Noida and Faridabad.

Sanjay Khanna, the director of Kailash Nath Developers Pvt Ltd, says: “I hope the worst is over for realty market and transactions take place till the end of summer vacation in schools. This Navaratra is proving to be very auspicious for the realty world. I know that NRIs, too, find the summer months an ideal time to return to their roots in order to buy property. Their search for a property also starts during the summer. This is the time when they visit India in order to meet their relatives and, side by side, also look for nice properties. They do not mind paying slightly more for good properties.”

Realty watchers say that April-June period records a high quantum of property transactions. Realty market picks pace from Navaratras. This is a time when end users finalize their deals and those looking for new homes on rent, also shift. The summer is also a time when the resale market picks up nicely.

Vijay Jindal, the chairman and managing director of SVP group, says: “It is a hectic period from Navaratra and through the summer months. A lot of transactions take place at all levels.” He says that during the summer, buyers give priority to those projects which are close to good schools.

Income Tax Offices will be open on Saturday i.e. 31-3-2012 to facilitate filing of returns.

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The Financial Year 2011-12 closes on 31-3-2012 falling on Saturday. All the Income Tax Offices throughout India shall remain open on this day and the receipts counters shall also work during normal office hours.

This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.

Accordingly, Income Tax offices will function from 9.30 am to 6 pm tomorrow to handle year-end rush.

Special arrangements may also be made by way of opening additional receipt counters, wherever required on 30th and 31st March, 2012 to facilitate the taxpayers in filing their returns of income conveniently.

These instructions may be given wide publicity – ORDER [F.NO.225/138/2011/ITA.II], DATED 30-3-2012

No bar on Real Estate Sector from applying for UASL.

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A prosecution witness in the 2G spectrum allocation case on Thursday told a Delhi court that as per the Unified Access Service Licences guidelines, the real estate firms were not barred from applying for the licences.

Company Secretary V Mohan of real estate firm Parsvnath Developers Ltd, which had applied for the UAS licences in 22 circles in August 2007, told Special CBI Judge O P Saini that when the company had applied for the 2G licences, they had gone through the UASL guidelines.

“When the company made application for UAS licence, I had gone through UASL guidelines. When I went through guidelines and the company decided to file application for UAS licences, it was quite clear to me that there was no restriction on a real estate company, applying for a UAS licence,” Mohan said.

Mohan deposed that in August 2007, the firm tried to venture in the telecom business and made applications to the Department of Telecom (DoT) for licences.

Mohan said their application was rejected by the DoT and Parsvnath Developers Ltd did not get any licence.

During his cross-examination, he said their firm was complying with net worth criteria and paid up equity capital criteria when it applied for the UASL on August 24, 2007.

He said the firm knew about August 2007 recommendations of the Telecom Regulatory Authority of India (TRAI) and in view of this, they knew that the entry fee for grant of pan-India UAS licence was Rs 1,658 crores.

“The company was in the know of TRAI recommendations of August 2007. The company knew that the entry fee for grant of a pan-India UAS licence was Rs 1,658 crore, in view of TRAI recommendations. When the company made the application on August 24, 2007, it never knew that DoT was going to announce a cut-off date,” Mohan said.

Mohan, whose deposition concluded today, said the main ground communicated to Parsvnath Developers Ltd by the DoT for rejecting its application for the UASL was that the telecom business was not in the object clause of the firm at the time of making the application.

He said the rejection of the application by the DoT was challenged by the firm before the Delhi High Court. Besides Mohan, the court also recorded the testimony of prosecution witness Raj Kumar Kapoor, a retired Director of Bycell Communications (P) Ltd, which had also applied for UAS licences in 2007.

Kapoor, whose recording of testimony concluded today, said he was called by the DoT officials for licences on January 10, 2008 but at Sanchar Bhawan, he was given a letter to the effect that their application for UASL was not considered.

Chennai leads Indian Realty Sector.

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In a recent report, property broking and real estate consulting firm Jones Lang LaSalle said the Indian property market is poised to attract about US$3 billion, almost double last year’s US$1.6 billion, from overseas buyers this year.

The Indian property market will see more investment from overseas this year as it still remains an attractive investment destination globally.

Of this, one-third would be from home buyers and the balance from investors. This is despite the fact that property prices in India are at an all-time high.

According to a recent National Housing Bank (NHB) survey, property prices in big Indian cities have increased by as much as 43 per cent to 166 per cent in the last four years.

NHB, wholly owned by the Reserve Bank of India, lends to home-mortgage companies. It also regulates and refinances social housing programmes. In its report, the bank said Chennai had seen the highest rise in prices at 166 per cent. Bhopal was second with a hike of 117 per cent and Mumbai was ranked third with an increase of 87 per cent.

What then brings overseas investment to Indian property, when prices are skyrocketing? The answer is simple: Despite the global turmoil because of the financial crisis, the Indian economy has remained robust, largely due to domestic-driven demand.

According to Jones Lang LaSalle, India’s strong economic growth, rapid urbanisation, growing middle-class population, demographic advantage and increased thrust on infrastructure has worked in its favour. Buying property is especially popular among Indians living abroad, who all seem to want a piece of the homeland. That is why Indian property shows are burgeoning around the globe.

Dubai-based Sumansa Exhibitions has been holding Indian property shows across five countries. And every year the number of developers taking part in the shows and the attendees has grown rapidly.

Sumansa Exhibitions’ chief executive officer Sunil Jaiswal says: “We have held shows in the UK, South Africa, Hong Kong, Dubai and Singapore. They have been very well received by both exhibitors and visitors alike.”

This year Sumansa will hold the Indian Property Show in Singapore on April 14 and 15. It will be held at the Suntec Exhibition Centre’s hall 401 and nearly 40 developers from across India will be part of the show.

More than 200 properties will be showcased during the two-day exhibition. Sumansa expects the number of footfalls at the event to be much larger than the 4,000 that turned up at its last year’s event.

Preferred Bidder for 42 Marriott Hotels in UK is an Indian investor.

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Indian property investor Blue Mountain Real Estate Advisors has been selected as the preferred bidder for 42 Marriott hotels throughout Britain after it offered almost 750 million pounds, a media report has said.

The holding company for the portfolio of hotels collapsed under the weight of about 900 million pounds of debt, most of it held by Royal Bank of Scotland (RBS).

Blue Mountain Real Estate Advisors, a part of the Mumbai-based India Blue Mountain group, is understood to have been granted a period of exclusivity by RBS to put together funding for a deal, The Times said in a report.

The proposed sale to Blue Mountain comes as a surprise as, according to the report, the front-runners in the latter stages of the auction had been RB Capital and Sahara, the Indian group that bought the Grosvenor House on Park Lane just over a year ago for 470 million pounds.

IOREC: Property Market In Mauritius a Profitable Investment.

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The sluggish global economy has not left the property sector unscathed, but the high-end estate market on the Indian Ocean island of Mauritius is showing remarkable resilience.

Murray Adair, CEO of the Indian Ocean Real Estate Company (IOREC) who is developing several luxury resorts in Mauritius in partnership with Flacq United Estates Limited (FUEL), says while there had been a slow-down in the property market, sales transactions in upmarket resorts on the island remain buoyant.

Adair says this is particularly true for resorts developed under the Mauritian Government’s Integrated Resort Schemes (IRS) which aims to encourage foreign direct investment. He pointed out that more foreign ownership approved units were sold in 2011 than in the whole of 2009 and 2010 combined. Under the IRS, foreigners are allowed permanent residence in Mauritius when they invest $500 000 or more in these designated resorts and they keep this status for as long as they own the property.

“We find that the IRS is definitely encouraging investment on the island. For example, over 50% of the properties at Azuri, a luxury beachfront village to be built on the coast about 25 km from Port Louis on the north east coast, have been sold off-plan since it was launched in September 2011,” says Adair.

Adair says while the International Monetary Fund in January cut its 2012 growth forecast for Mauritius from 4.1% to 3.8%, the country remains a sought-after tourist and investment destination. He says the tourism sector contributes 15% to the GDP of Mauritius and remains the biggest foreign exchange earner for the island.

“The Government’s initiatives to further diversify the economy and encourage investments from the Far East, including China, Russia and India will further enhance the long-term growth potential of the island,” concludes Adair.

Brigade Group opens Orion mall in Bangalore.

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Real estate developer Brigade Group has opened its flagship retail venture Orion mall in Brigade Gateway Enclave, Bangalore. Spread over 8.2 lakh sq. ft., the mall houses a mix of global and national brands.

Orion mall is developed and managed by Brigade Group and located in the Brigade Gateway Enclave that also includes the World Trade Centre, Sheraton Bangalore hotel, 1,200+ residences, Columbia Asia Hospital, The Brigade School, and Galaxy Club. The mall overlooks a two-acre manmade lake and has open-air children’s play area and amphitheatre.

Foley Designs and DSP Design are the interior designers, while HOK from New York has developed the main design of the mall. The mall has LED lighting solutions, automatic sensor controlled car parking, over 225 closed-circuit security cameras apart from 42 lifts and escalators.

Speaking on the occasion, Jaishankar, CMD, Brigade Group, said: “Orion mall will undoubtedly be the most sought-after destination amongst discerning shoppers and for brands of repute as well. With the launch of Orion, it truly transforms the Brigade Gateway Enclave into an exclusive integrated lifestyle enclave and marks the Brigade Group’s foray into the highly competitive retail segment.”

The mall has three entrances from Dr. Raj Kumar Road – Rajajinagar, Yeshwantpur (next to Metro Cash & Carry), and Railway Parallel Road – Malleswaram.
Orion has a hypermarket (Star Bazaar). Its food court (Sauce Pan) spreads over 55,000 sq. ft. Housing brands like Mc Donald’s, Subway, Sbarro, Rajdhani, Kailash Parbat, Empire, Empire Fresh Fruit Juice Centre, Indian Tadka, Mad about China, Mad over Donuts, Tiger bay, and Up south. The mall also houses a Reliance Digital store for electronics need.
For entertainment, Orion will house the largest PVR multiplex of the country – with 11 screens and over 2,800 seats. BluO, a 27-lane bowling centre will also open its first centre in the city. The lounge will offer entertainment options like Karaoke bar. The mall will also house Time Zone, an 8,000 sq. ft. gaming centre.

Brigade Group has completed over 100 projects, developing over 20 million sq. ft. of area since 1986.

20% Reservation for EWS will take time, Says Real Estate Industry.

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The real estate industry is at loggerheads with the state government after a directive by the Urban Development Department to private developers that they reserve 20 per cent of plots and tenements for the economically weaker sections (EWS). The move is being opposed not only by individual developers but also by the Confederation of Real Estate Developers Association of India (CREDAI) who is tagging the proposed policy as unworkable and not contemplated in totality. CREDAI has filed an objection with the Town Planning Department (TPD) arguing that Rajeev Awaas Iona gave thought to all aspects of such housing creation.

“The department is at present hearing people with stake in real-estate industry and have filed objections. The hearing report will be submitted to the government for approval,” said Avinash Patil, deputy director, TPD. The government notice, issued in January, specifies that out of development on plots measuring 2,000 square metre and above, the developers should reserve 20 per cent of the area for the EWS category in the plot size of 30 to 50 square meters. In case the developer is building apartments on the same area, it has been directed that minimum of a 20 per cent of built-up area be reserved in the apartment size of 27.88 to 45 square meters.

The real estate industry feels that implementation of such a policy should only happen after adequate thoughts as the notice can affect the industry adversely. “The notice lacks clarity. In the present form the move will hit us badly,” said Hemant Naiknavare, vice-president, CREDAI, Pune Metro.

Gudi Padwa and its Impact on Indian Realty Sector.

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Gudi Padwa, a festival which earmarks new beginnings and new hopes to everybody’s life. Hence many builders announce their new projects at this point of time taking into consideration the sentiments of the local market. The festival is widely celebrated in the state of Maharashtra. As for common people in India, a home is a priced possession and they do not sell and buy residential properties often. They wait for an auspicious date to such transactions.

Keeping this in mind, realtors at Pune has organized Sakal Pune Property Show named as Sakal Gudi Padwa Grihotsav 2012. Across the just concluded quarter, residential prices in the outskirts of Mumbai have seen a positive slide. With the Union Budget 2012 giving due consideration to the loans of affordable housing projects coupled with the positive feeling related to the festival, buyers and sellers expect to strike a great deal during this year’s Gudi Padwa.

The buyers mainly constitute the New Urban Family Sector. Moreover, during this festive season, realtors juxtapose the properties with attractive discounts and freebies. But with these factors only, nobody can lure customers today. They are more oriented towards the location of the property, the pricing and the quality of construction.

The recent years were not so good for real estate sector. The ever rising inflation rates and interest rates kept the buyers at the bay. But the recent decision of the RBI to cut CRR rates gives little bit of hope to the sector.

However real estate experts suggest that the sentiments related to a festival only cannot trigger the sector. But it is decisive in getting the real estate market on the right track after a gloom. Moreover, traditionally Gudi Padwa means birth of bhoomi and bhoomi is everybody’s shelter. We can hope and look forward for bright days for real estate sector ahead with this auspicious festival.

Lalit Kumar Jain: Bihar is better than Maharashtra for builders.

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When it comes to ease of approval and a good bureaucratic set up for real estate, Bihar seems to be better opportunity than Maharashtra, according to Lalit Kumar Jain, real estate tycoon and president of Confederation of Real Estate Developer’s Association of India (CREDAI). Jain was speaking to DNA against the backdrop of the first ever all India CREDAI meeting to be held in Pune from Wednesday.

“In Bihar, the bureaucratic setup to get necessary sanction allows us to complete our projects on time. Thanks to the organised system there, the end buyer also pays less for real estate compared to Maharashtra,’’ he said.

The two-day conference, will discuss amongst other things, the various challenges faced by the industry in terms of approvals, government’s decision to reserve 20%flats for economically weaker section of society and other issues.

While commenting about various problems facing the industry, Jain saidthe apparent delay in the process of getting sanctions for the projects was a major concern. “In case, the sanctions are delayed, the cost of the project escalates which results in a burden on the customer,’’ he said.

The decision of the state government to compulsorily reserve 20% of the flats for economically weaker sections of society according to Jain would be have a negative effect on the industry. “To compromise on this, the builder will pass on the cost to other buyers who will feel the pinch,’’ he said.

Real Estate Sector in Bangalore may see 25 per cent growth.

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The real estate sector in Bangalore has grown to a large extent in the past one year. In the year ahead, the city’s realty is expected to grow by 25 per cent, estimates the Karnataka Chapter of the Consortium of Real Estate Developers’ Associations of India (CREDAI).

“We are expecting the realty to grow by 25 per cent in the coming year. Last year too we have witnessed a similar growth,” said Sushil Mantri, president, CREDAI Karnataka.

As per studies conducted last year, the city is likely to absorb about 7.1 million sq. ft. of office space against a supply of 7 million sq. ft. While demand for office and commercial sales in the city saw a rise, residential sales remained slow.

Experts said that the city witnessed a great strength in high street leasing and rent, and capital value has increased nominally in a few sub-markets. Also, there was a rise in rental value as demand by retailers remained strong.

With commercial office space developers offering favourable options, predictions for 2012 are that several IT companies in the city will look at pre-leasing office space.

However, analysts opine that office space supply will outweigh demand.

“FDI in multibrand real estate is expected to catalyse a lot of demand from international retailers. International luxury brands will restrict their growth plans to Mumbai, Delhi and Bangalore,” states a projected report by Jones Lang LaSalle India, Realty Intelligence firm.

The report states that the mid-end and affordable housing segments will record healthy appreciation in capital value in short term from a low base.

 

Real Estate Sector Brokers bail out Developers with Buyback Deals.

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The prices are not moving up in metros for more than a year now and the buyers including investors are staying away from making a purchase decision, so brokers are in a fix currently.

An Industry watcher said that the Real Estate Developers are facing a cash crunch in the NCR and Mumbai Metropolitan Region and are approaching brokers to underwrite their properties to save the day and maintain prices of properties in a bid.

“So as the new real estate projects that are launched, brokers underwrite a bulk of apartments and the developer can show it as sales,” said Sachin Sandhir, managing director, Royal Institutions of Chartered Surveyors.

Kaustuv Roy, executive director, Cushman & Wakefield, said “For the whole system to work two things are very important, first there should be buyers in the market and second the prices should continue to increase at a faster rate.”

 

‘Integrated Township of the Year Award’ received by the DLF Garden City Lucknow.

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Garden city is DLF’s first residential project, in the city of Nawabs – Lucknow. With almost 40 per cent of the area as open spaces and plot sizes starting from 250 sq. yards and above, the township conforms to very high standards of low density population norms. The facilities at Garden city match the international living standards and give the people of Lucknow their first real taste of an exquisite lifestyle. It boasts of meticulous town planning, eco-friendly infrastructure, wide open roads, its own smart sewage disposal plant, underground cabling and massive green belts running across the township.

Garden city has bagged the “Integrated Township of the Year – North India” award at the Realty plus Excellence Awards 2012, instituted by real estate monthly magazine Realty Plus. Cheered by a galaxy of realty stars, luminaries and other stakeholders present from all over the country at a glittering award ceremony held in national capital at The Metropolitan Hotel, Bangla Sahib road, Garden city, Lucknow was chosen for setting new benchmarks for excellence in the Indian Real Estate industry in 2012′, their immaculate town planning and their outstanding contributions and efforts towards bringing about massive and positive changes in the real estate skyline of this region.

This is the fourth award in the last two years conferred upon DLF India:

* Marketer of the Year For Hyde Park Estate at DLF New Chandigarh – Estate World Awards in Association with KPMG & Bloomberg-2011

* Developer of the year – North India – Estate World Awards in association with KPMG & Bloomberg-2011

* Integrated Township of the Year For DLF Valley, Panchkula – Realty Plus Excellence Awards-2010,

Receiving the award, Ananta Singh Raghuvanshi, director sales and marketing at DLF India Ltd said, “It is extremely encouraging to enter new markets and recreate the success and magic of the past. As a group we are extremely excited and committed to our developments in Lucknow, New Chandigarh, Hyderabad, Chennai, Bengaluru, etc. For each market, we are trying our best to think globally and act locally.”

Real Estate tops the PE chart in Feb.

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The second month of 2012 saw $922.7 million of private equity (PE) investments in Indian companies across 51 deals, 58% higher than the investments of $583.8 million across 24 deals in the same month last year.

However, the average deal size declined to $23.1 million from $38.9 million last year, as February 2012 was marked by a high number of smaller value deals.

During the month, the real estate sector topped the investment chart, accounting for 36.6% of the total investments, while the banking, financial services and insurance (BFSI) sector occupied the second slot with 23.6% share.

Mint, in association with Four-S Services, presents a snapshot of the PE landscape in India for February.

Stamp duty hike report in Maharashtra for the Real Estate Sector.

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Shares of real estate companies with significant exposure in Mumbai slumped in a weak market today after media reports surfaced that the Maharashtra government proposes to hike stamp duty for properties.

Shares of realty players like India Bulls, Oberoi and HDIL today slumped as much as 6 per cent after reports that the state government is planning to hike stamp duty by as much as 160 times.

India bulls Real Estate slumped 4.53 per cent to a low of Rs 65.25, Oberoi Realty tanked 2.32 per cent over its previous close to Rs 250 and Housing Development and Infrastructure Ltd was down by 6.64 per cent to Rs 89.15 on the BSE.

If the hike comes into effect, it will increase prices of both residential and commercial leave-and-licence properties, by a huge margin, market analysts said, adding that it will affect the already-sluggish Mumbai real estate demand.

“This news is going to be negative and stock prices of realty companies who have exposure in Mumbai took a hit. The cost of property in Mumbai will move up it will worsen the situation as there are already very few takers at the present interest rate regime,” Ashika Stock Brokers Research Head Paras Bothra said.

Moreover, weakness in the broader market also battered these stocks to some extent, market analysts said. The 30- share benchmark index Sensex was trading at 17,113.62, down 248.12 points at 1321 hours.

According to media reports, Maharashtra government proposed to hike stamp duty on leave-licence to 0.1 per cent on market value or 1 per cent of the average annual rent or deposit paid, whichever is higher, for residential properties.

For commercial properties, the duty for lease agreements over 60 months is 0.4 per cent.

This is a whopping hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.

Banks prefer Private Developers for lending.

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As per the latest data available from the Reserve Bank of India, the outstanding for commercial real estate is Rs 1187.1 billion as of January 2012, a growth of 12.2 per cent over the year-ago period. Although this rate is lower than the growth figure of 19.9 per cent in the same period the previous year, the double-digit growth stands in sharp contrast to the claims from public-listed realty firms who say bank lending has shrunk considerably.

Central to the theme of continued lending to real estate development are the low-lying, unlisted property developers of the country – a crop of realtors who have always been on the side-lines of the big Indian realty story but who are slowly yet surely climbing up the ladder for a larger share of bank loans.

According to a research report by IDFC’s Institutional Securities team last December, bank and NBFC loans to developers have increased 15 per cent to Rs 1.8 trillion for the 12 months ended September 11 in spite of higher interest rates and the RBI’s efforts to curb lending to the sector. Of this, loans to unlisted developers accounted for more than 72 per cent of the total.

One reason for such a shift could be the hard targets that listed realty firms chase due to the pressure of being listed, with compulsory quarterly disclosures. Add to it the size of the firm and pressure points will become clearer. A listed firm usually places bigger bets with larger projects and when the market faces turbulence, project execution becomes a problem. This reverberates with pending projects and drying up of bank credit.

Even as most unlisted private developers are small realtors, there are some large private groups in different regions of the country. Given the huge set of private developers, even private equity developers have been betting on projects sponsored by such realtors.

Real Estate Sector still waiting for the long pending Industry Status.

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The announcement with respect to external commercial borrowing now being permitted opens up a huge opportunity for developers want to cater to the bottom of the pyramid with housing units targetted at the lower income classes even though the overall expectations haven’t been met.

This move will ensure better capital availability for developers of low-cost housing which will result in timely project execution, which will boost volumes and since low margins are typical of this sector, only higher volume growth will make it attractive to developers.

The Union Budget 2012-13 throws up a mixed bag for the real estate sector. The government’s initiative to make affordable housing available to a larger section of the society has only been met partially. Initiatives such as external commercial borrowing (ECBs) for the affordable and low-cost housing segment will help the sector to tap long-term funds and help ease the liquidity in the sector.

Extension of the 1 per cent  interest subvention scheme for affordable housing will help the buyers to avail a loan limit of Rs 25 lakh. Also the measures to increase funding for highways and other infrastructure will help put more territories on the real estate map.

The Union budget has no real measure for the real estate sector as most of the industry expectations have not been met. The most important demand across all real estate companies is that of an industry status being assigned to the sector has been still pending.

Even though all the expectations have not been delivered. The most important demand of increase in the limit on tax deduction available on home loans interest from current Rs 1.5 lakhs remains unanswered.

 

India loses $210 billion in Coal Scandal.

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The Indian Parliament erupted in hoots and jeers Thursday after a draft report by government auditors estimated that the national treasury lost $210 billion by selling coal fields to private excavation companies in sweetheart deals.

According to the report, leaked to the Times of India newspaper, the primary beneficiaries were about 100 private and state companies that were handed contracts for 155 coal fields between 2004 and 2009 without going through a competitive bidding process. The report said that $210 billion — five times India’s annual defence budget — was a conservative estimate given that it relied on prices for low-grade rather than medium-grade coal.

The report represents the latest in a string of corruption scandals to hit the ruling Congress Party — others have involved the telecommunications, real estate and sports industries — that has left India’s leadership weak and bereft of policy initiatives. Opposition leaders called the latest revelation the “mother of all scams,” accusing the government of looting the country.

But auditors with the comptroller/auditor general’s office countered that the leaked draft is misleading, adding in a letter to the prime minister’s office that the figures publicized were the product of discussions held at a “very preliminary stage.

“We are examining the news report and I have called for records,” Coal Minister Sriprakash Jaiswal told journalists, adding that he wasn’t in office at the time of the suspect deals. “After that I will reply.”

The government said it has not received the report yet from comptroller/auditor general’s office.

India, the world’s third-largest coal producer after China and the United States, has seen a series of mining scandals. In August, the top elected official in south western Karnataka state resigned after being implicated in a mining scandal that a watchdog said involved $400 million. Three months later, a report claimed that almost 50% of the iron ore exported from western Goa state was illegally mined.

India is hungry for energy to fuel its fast-growing economy, and coal accounts for 70% of the mix, a percentage expected to grow, given limitations on the further development of power from nuclear reactors and renewable sources. Environmentalists, however, say increased production is ecologically unsustainable.

Gulshan Homz : Press Release

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Gulshan Homz, part of the GC Group of companies, has announced the launch of its new residential project:  Gulshan Ikebana at Sector 143B, Noida Expressway spread over 12.5 acres land with apartments of sizes 1400 sqft (3BHK) to 2300 sqft (4BHK+Study) and offers a sleek, infinitely flexible, multi-dimensional and open life and is well conceptualised for quintessential living. Ikebana is designed keeping all the modern needs, indulgences and luxuries in mind so one would enjoy excellent location advantage with lust green surrounding and seamless connectivity which will offer natural retreat and also excellent metropolitan convenience and vibrance.

Amenities:-

  • Water softener plant, Bus shelter
  • Club, Karaoke theme Restaurant
  • Internet Connectivity,24 x 7 Security
  • Intercom Connectivity, Customer Care Centre
  • Rain Water Harvesting, Water Softener Plant
  • Swimming pool, Steam/Sauna/ Massage Rooms
  • Yoga Centre, Indoor Games
  • Jogging Track, Badminton
  • Basketball Court ( Half Court), AC Gymnasium
  • Special Play-pan for kids, Immaculate Landscaping
  • Aerobic Dance Floor, Coffee Shop
  • AC Unisex Beauty Salon, AC Banquet / Party Hall / Guest Lounge
  • Business Lounge, Laundry Services
  • Cabs on call, Amphitheatre
  • Kids Lounge, Regular in- Compound OPD
  • Ambulance on Call, Doctor on Call
  • Stretcher Lifts, Wheel chair for Elderly and sick

About the Developer:

Gulshan Homz has constructed luxurious living spaces and the Group has improvised its skills over the years to launch a number of premium projects. They have stamped a mark of excellence in luxury Real estate developer with honest morale, integrity, sound business ethics, transparency and invaluable experience. With a vision to pass on a green environment and prosperous cities to the future generations they look forward to developing luxurious real estate options.

IMf Chief says,Global Economic Crisis presents many lessons.

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The International Monetary Fund (IMF) Managing Director Christine Lagarde on Tuesday said the global economic slowdown has presented many lessons, and added that the financial sector, which has been identified as a ‘high contagion’ agent for the crisis must aid growth, not threaten it.

Addressing at a New Delhi conference on sustaining high-quality growth in India and China, Lagarde billed the financial and real estate sectors as the prime causes of the global financial crisis.

“We’ve also identified that the financial sector and financial institutions were high-contagion agents for the crisis, and that tells us, I think, a lot about where reforms have to focus going forward, both in the advanced economies and the emerging markets,” said Lagarde.

“Whether it is China or India, the financial sectors and the financial institutions have to be strong, have to be agents for growth and not a threat to growth,” she added.

Referring to the financial crisis in the Euro zone, the IMF chief said concerted efforts by some European nations and the European Central Bank (ECB) had pulled the continent further away from the brink, though several challenges still remained to be tackled.

“Thanks to the ECB, thanks to the European partners really addressing the issue of governance and thanks to the European partners and the IMF really focusing on what needs to be improved, we are further away from the abyss than we were three months ago, but there are still some really significant vulnerabilities and fragile areas that need to be tackled, that need to be addressed with rigour and vigour in the months to come,” Lagarde said.

Housing and Real Estate: Telecom negatives present challenges

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While recognising the importance of the services sector (it accounts for 59 per cent of gross domestic product), the Economic Survey has raised concern over several components in it. Three months after the government rolled back its decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, the survey referred to it as a major challenge before the sector.

FDI in retail could begin in a phased manner in the metros, the survey suggested, a day ahead of the Budget. Though it did not specify the details, experts said the government document hinted at a low FDI cap, perhaps one of 26 per cent. It has also talked of “incentivising” mom-and-pop stores (kirana shops) “to modernise and compete effectively with retail shops, foreign or domestic”.

While agricultural marketing could improve immensely with the growth in modern retail trade, the revenue to the government could also increase. Currently, the retail sector is largely unorganised and has low tax compliance, it argued.

Reacting to the portion in the survey relating to FDI in retail, Purnendu Kumar, senior vice-president (retail), Technopak, said, “This is something similar to what was articulated earlier — issues like better integration with farmers leading to better pricing for them and quality storage leading to lower wastages. It needs to be seen how the government would be able to execute this, considering the Congress party does not account for the majority on its own.” Incentivising small traders was a welcome step, but the details were not available, Kumar said.

Karandeep Singh, chief financial officer, Flipkart, a leading online retail chain, said, “While the future is promising, it will be realised only if the government acts on some of the guidelines provided in the survey.” According to Singh, opening up FDI in retail and continuing to make the infrastructure sector attractive for investments were critical to creating more jobs and having a multiplier impact on the economy.

Excellence Recognition in Real Estate Sector.

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Realty plus Excellence Awards 2012 series for the northern region of India will be on March 21. The awards for South India and West India were given away on March 2 and March 9, respectively.

The Realty plus Excellence Awards recognise people who have played a key role in the growth of the Indian real estate sector. Contributions made by developers, architects, interior designers, state government, and property advisors are recognised. These awards are decided upon by a distinguished jury.

Anuj Puri, Chairman and Country Head, Jones Lang LaSalle India, is the Jury Chairman for this year’s awards.

Positive effect: What Budget 2012 means for Mumbai’s Real Estate.

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Allowing external commercial borrowings (ECBs) in the low-cost housing segment, the supply of affordable housing projects will increase in the outskirts of Mumbai in areas such as Karjat, Boisar, Nalasopara, Virar, Dombivili etc. on the heels of increased liquidity for budget home projects.

The extension of 1% interest subvention scheme on housing loans up to Rs 15 lakh wherein the cost of the house does not exceed Rs 25 lakh, for another year will also help sustain demand for affordable housing in Mumbai.

The increased allocation for highways and other infrastructure projects will help boost development of Mumbai’s outskirts and increase the supply of housing units there. This will result in price stability and affordability over the long term. The investment-linked deduction of capital expenditure in affordable housing, proposed to be raised to 150% from 100%, will also encourage more supply of low-cost housing in the city.

The reduction of the withholding tax on ECB interest from 20% to 5% will help Mumbai’s affordable housing segment by creating much-needed liquidity for budget home developers. End users will have more money available for home loans with the setting up of a credit guarantee trust fund to ensure better flow of institutional credit for housing loans.

The announcement of central assistance and Japanese participation in the Delhi-Mumbai Industrial Corridor project is a big plus. Areas on Mumbai’s outskirts that lie along the corridor will see increased land values.

By reinforcing the tax pass-through status for all types of Venture Capital Fund (VCFs), there will be renewed confidence levels of real estate private equity investors to invest in cities such as Mumbai (which has seen most of the PE investments post the Global Financial crisis.)

Gulshan Homz Launches New Project “Gulshan Ikebana” At Sector -143, Noida

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Gulshan Homz, part of the GC Group of companies, has announced the launch of its new residential project: Gulshan Ikebana at Sector 143B, Noida Expressway. Spread over 12.5 acres, Gulshan Ikebana will host luxurious high rise apartments of sizes 1400 sqft (3BHK) to 2300 sqft (4BHK+Study). Highlights of the project are:

  • Gated Community with 24×7 Security Access-controlled entry and exits
  • Convenient Shopping Complex
  • Landscaped Parks and Playgrounds
  • Sewage treatment
  • Rain Water Harvesting & all other amenities
  • Proper boundary wall around the periphery
  • In premise maintenance services
  • 24×7 Power Backup
  • 24X7 Water Supply
  • Landscaped Greens
  • Exclusive Recreational Facility
  • Community Shopping
  • Healthcare Centre
  • Sauna /Steam
  • Badminton Court
  • Swimming Pool
  • Basket Ball Court
  • Massage Room
  • Gymnasium
  • Wheel Chair Ramp for Elderly /Sick
  • Jogging Track
  • Baby Day Care Centre
  • Indoor Games Facility

More details of Gulshan Homz Ikbana are available at gulshanikebana.propertywala.com

The John Marshall Law School will present “Real Estate Investing in India: Opportunities and Challenges” at an event.

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The Centre for Real Estate Law at The John Marshall Law School in Chicago will present the lecture “Real Estate Investing in India: Opportunities and Challenges” on April 4, 2012.

Risks and benefits that come with purchasing real estate in India is the topic of an April 4, 2012, lecture at The John Marshall Law School in Chicago. Guests Shahrookh Cambata, Scott Eisenberg and Marc J. Strauss will speak at the event.

The free program, from 8:30 to 11 a.m., looks at the interest in real estate in India. Investments have grown as the expanding real estate markets in the U.S. and Western Europe have caused investors to consider developing markets for better opportunities. Speakers for “Real Estate Investing in India: Opportunities and Challenges” will discuss the risks and benefits of investing in India. Real Estate sales there have thrived since 2005 because the Indian government strengthened its protection of foreign ownership.

 

The lecture will feature three experts: Shahrookh Cambata, managing member and CEO of Greaves Travel; Scott Eisenberg, attorney and real estate entrepreneur for Lakeshore Investment Development; and Marc J. Strauss, general counsel for First Rockford Group.

 

Registrations are requested and are being accepted at http://www.events.jmls.edu/re-india. Attorneys can earn two hours of CLE for this program.