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LIC Housing to Concentrate on Senior Citizen Homes Business

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LIC Housing Finance focuses to have a all India-presence for its senior citizens homes business as the rise in demand from senior citizens provokes the company to scale-up presence in other cities across the country. The 4th largest mortgage lender has finished two projects, one in Bangalore and the other in Bhubaneswar, They believe this “futuristic idea” will lead to the home finance company eventually spinning off its care home business into a listed body as early as 2014.

“We expect to make the care homes business a fully listed body in coming three to five years,” CEO of LIC Housing finance said. LIC H.F., promoted by the country’s largest insurer, the LIC of India, is looking for an existence in up to 07 cities, which it says are more “friendly to the senior citizens” and also can get land at discounted rates. The company lately finished a 98-unit project and a bigger 200-unit project in Bangalore and Bhubaneswar respectivly.

Presently the organisation is in the process of acquiring land in Jaipur, Haridwar and Goa. “More cities such as Nagpur and Pune which have historically been friendly to the retired people will be looked at.” India has 65 % of its people aged between 15 and 64 years, so the business model might find many takers. Retirement homes are built in a community format with modern amenities including gymnasium & club houses, music rooms and auditoriums. These projects also come with a house-help which is offered by the developers or owners themselves.

Fire Capital Plans to Increase $ 100Million to Invest in Housing Projects

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Fire Capital, the first private equity fund focused on the Indian real estate sector , plans to increase $100 million to capitalize in housing projects. The company will increase the money initially from its existing investors in the US to invest in tier-II and tier-III cities in states like Haryana, Punjab, Rajasthan, told the CEO Om Chaudhry.

“There is an intense scarcity of residential projects, as India would require at least another 30 million homes by 2012 to fulfil the existing housing need. We want to cut some bit of the demand and supply gap in small towns and accommodate to the middle income segment,” he said. Majorly homes are needed in the mid and lower income group. Fire Capital, established in 2004, raised its first fund worth $121 million in 2006, with an ability to invest around $250 million through the co-investment commitments of its investor base. All the funds are almost over. It is raising the additional amount to built 25-50 acres with each builder in small towns this financial year.

The real estate sector in the country was one of the biggest effected area of the global economic recession in 2008-09 as buyers kept away from the market and banks became panicky about giving loans. Although recovery in the sector is gaining speed, but the amount of debt in the industry is a big concern. According to industry estimates, real estate firms have built up a total debt of about 75,000 crore. Property developers are increasingly approaching private equity firms to complete both existing and new projects besides repaying a part of their debt.

Lodha Group to pay Tax Rupees 60 crore

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Income Tax department officials seized crores in unaccounted cash from lockers of the employees of real estate genius Lodha Group, five months after it has asked the company to pay Rs 60 crore in taxes. In January, the I-T department had raided about 20 premises of Lodha Group on alleged misquoted of income. The surprise visit by IT official was based on a tip off suggesting overestimated expenditure using faux receipts and cash payments from clients. The invade had shielded Mangal Prabhat Lodha the Chairman and his two sons the directors of the company.

While investigating the documents found at the premises, I-T officials came across details of bank lockers in the name of the company’s employees. When these lockers, in all 26, were invaded, unaccounted cash running into crores of rupees were found. In the first raid itself, the department had found unaccounted Rs 6.5 crores in an employee’s Kalbadevi locker. Addition to that Rs 1.5 crore were found in the offices and residential premises of the company’s owners. The I-T officials had also held over 10 note counting machines from the group’s offices. IT officials said the entire exercise was undertaken by the company to escape tax. Now, the I-T department has freezed the company’s annual income at Rs 200 crore and asked the Lodha Group to pay Rs 60 crore.

 

Real Estate Developer to Maintain Focus on Residential Segment

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Puravankara Projects Ltd. will take a call on incoming the hospitality sector in 6-8 months and which segment to target would depend on the city and the site’s location, according to a top company official. “The company possessed properties in city centres that were suitable for hospitality projects. However, the organisation has put them on hold since its focus now was on residential projects,” said the Joint managing director, PPL.

While granting that the endless rising of the home loan interest rates may have a near-term impact on the industry, he did not expect it to discourage buyers from investing in home purchases particularly in the South. Puravankara, Joint managing Director, was speaking at a press conference to announce the upcoming project in Coimbatore.

The company was asked, are they looking to expand in other regions in the county rather than being a South-focused player? Ashish said, PPL was ‘more an opportunity-driven’ company and it moved into southern cities because of the opportunities they provided. He added that the company would like to strengthen its presence in the South first. It has a joint venture project in Kolkata and also in Colombo.

State Bank of India Increases Loan Rates

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Country’s largest lender State Bank of India has declared a hike in loan interest rates by 75 bps, making housing , auto and other loans tougher for both new and existing debtors. State-owned SBI has increased the base rate, or the minimum lending rate, by 0.75 % to 9.25 %.

The new rate is effective from 12 May2011, the banker said. The increase in State Bank of India’s lending rates comes a week after the Reserve Bank of India raised its lending and borrowing rates by 50 bps. SBI has also increased its standard prime lending rate by 75 bps which would mean that current borrowers will also have to pay more for their loans. With this, BPLR goes up to 14 %. State Bank of India has also elevated deposit rates by up to 225 bps on selected 04 maturities. Many banks have been on a rate hike spree since the RBI’s decision to raise short-term key rates in its annual credit policy on 03May2011.

Over a dozen banks, including PNB, ICICI Bank, Oriental Bank of Commerce and Corporation Bank, have raised interest rates in past one week.

17 Commonwealth Games Flats to be Demolished

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NEW DELHI: 17 flats which DDA said were constructed illegally in the upper basement of the Games Village will soon be razed. The developer Emaar MGF have been served the notice by the building department of the Delhi Development Authority to this effect on May 2.

The vice-chairman of the DDA, G S Patnaik, said these flats were “illegal and have been sealed as of now”. The flats were not constructed as per the approved building plan, said DDA officials. The issue of the illegality of these flats came up just before the Commonwealth Games.

The total cost of these flats is between Rs 30 crore and Rs 40 crore.. The developer apparently gave an application on April 28, saying they are ready to remove the 17 unauthorized flats in the upper basements, without bias to their claim and rights under Master Plan-2021 and the building bylaws, provided the completion certificate is soon issued to the balance 1,168 flats in 34 towers.

Emaar already having sold off its share of 450-odd flats, the people who bought them for approximatly between Rs 2 crore and Rs 5 crore each have been asking the developer to hand over the property. The remaining flats are with DDA. But no flat can be allotted before the completion certificate is issued. The developer decided to let go the loss of having these 17 flats destroyed to accelerate the process of getting the completion certificate.

DDA claimed that a waterproofing of the basement is still going on and DDA has to ascertain whether the construction of the Village complex is within the overall ambit of Master Plan-2021 and the unified building bylaws which are in force in Delhi, then only the completion certificate can be given once these exercise has been completed.

During a recent hearing, DDA representatives presented that these illegal flats were not safe and not likely to be fit for occupancy as widespread leakage in the basement area was noticed during floods in April/September 2010. Moreover, several service lines of other flats are passing along the roofs of the unauthorized flats.

The purchasers of the Emaar flats, however, continue to suffer. As they have bought these flats because it was a government project with a time-bound deadline for completion. We were supposed to have got possession of the flats by March this year. They are suffering huge losses as many of them are paying 12% as annual interest on the loans taken from banks.

FDI Inflow Drop by 11%

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Foreign direct investment in India refused for the third consecutive month in March, dropping by 11 per cent year-on-year to 1.07 billion Dollars in the backdrop of financial havoc in Europe. The country received 1.2 billion Dollars in FDI in the consistent period last year. During the financial year 2010—11, the inflows droped by 25 % to 19.43 billion Dollars, which makes it vital for the country to fine tune its policies to attract overseas investment, sources told.

The FDI during 2009—10 had totalled 25.83 billion Dollars during 2009—10, which, too, was lower than 27.33 billion Dollars invested in the previous financial year. “The numbers are not enough, the govt. has to take more steps,” sources said. The Department of Industrial Policy and Promotion, the nodal agency on FDI policies, has initiated steps, including merging of all related rules and regulations into a single document. In January and February FDI drowned by 48 per cent (1.2 billion Dollars) and 30 per cent (1.04 billion Dollars), respectively, over the same period previous year. The sectors that attracted FDI include services, telecommunications, housing and real estate, construction activities and power.

The major investors in India are US, UK, Singapore, Netherlands, Japan, Germany and UAE. Foreign institutional Investors have invested 3.6 billion Dollars since January 01 till May 5, 2011.

Supreme Court Questions Sahara about Fund Raising Schemes

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The Counsel for the Sahara group of companies came in for some uncomfortable queries from the Supreme Court on Monday on its appeal against the bar on its recent schemes of raising the funds. Subrata Roy The Securities and Exchange Board of India had first banned two group entitites and their promoters from raising money. The Allahabad high court had, last month, declined to interfere with the order, also blowing the Sahara group in the process.

The Supreme Court on Monday asked Sahara India Real Estate Corporation to bring before it on Thursday the guidelines in which investors were asked to apply for debentures. The Chief Justice S H Kapadia also asked the corporation to show the list of its agents employed to make money. The court said it was not clear about the concept of the Optionally Fully Convertible Debenture through which the firm said it was raising the money. It asked Soli Sorabjee, counsel for the Sahara group, to explain it, but he was unable to. “If you don’t understand it, how can rural people understand it?” asked the court.

The Securities and Exchange Board of India had demanded full details on applicants for the scheme and said it was issuing the stop-order due to non-compliance. Sorabjee argued the company shouldn’t be held responsible if investors gave false addresses and particulars. Sahara is also protesting at Sebi’s public advertisement on the matter, telling investors to keep away, as having given it a bad name and helping its competitors. The Allahabad HC had rejected the plea regarding OFCD schemes floated by Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd.

ZED – BCIL’s Two Residential Projects in Bangalore

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BCIL is launching two residential projects — Zed Woods and Zed Earth — on the Yelahanka-Doddaballapur Road in Bangalore, which promise a pleasent blend of green living and urban comforts. The organisation is investing Rs 108 crore in total, out of which Rs 90 crore for Zed Earth and Rs 18 crore for Zed Woods. The Zed Earth villas come with a price range of Rs 1.5 crore to Rs 4 crore, while Zed Woods the price range is Rs 25 lakh to Rs 80 lakh.

Zed Earth spreads over an area of 18.7 acres, while Zed Woods comes over 1.5 acres. Zed Earth will have over 130 houses. The campus is carved into two large home phases. The first phase offers 44 individual, single-family houses spread over 6.7 acres. The second phase will offer at least 80 homes over 12 acres. ZED Woods will have 60 houses in its 1.5 acres against the industry norm of 65-90 homes an acre.

The speciality about the two projects is “Zed Earth home sizes offer much lower density of 0.9 in the ratio of built area to land area compared with a much higher density of 1.2 which is the norm in Bangalore. It has drawn from the vast traditional knowledge systems of Indian architecture and ‘vaastu’, and have mingled them with modern engineering expertise and architectural needs of today’s world.” These villas are muted. They offer a combination of rich wood floors, fine natural stone and earth-toned walls on the outside, sloped roofs add grace to the exteriors. Superb spaces with high ceilings, gabled roofs, terraces and backyards promise pleasant barbecue evenings. Split-levels highlighted spaces. Private quite places give personal comfort alongwith solar-powered fountains. Rich and greeny verdure offer micro climate. Every home has its own air-conditioning system that costs you under Rs 1,000 a month on a pay-only-on-use basis. Each home has a wet waste treatment system that converts all kitchen waste into odourless compost for your gardens. Zed Earth homes come in three-bedroom ranging 2,740 sq ft and 2,929 sq ft and four-bedroom ranging 4,056 sq ft options.

Zed Woods, in turn, will offer rich apartments ranging from 811 sq ft super built-up area for a studio apartment to 2,700 sq ft superior built-up area for exclusive four-bedroom apartments with lots of green features.  Zed Woods are luxury apartments with great amenities. These apartments have lush green UAS forest on one side and is on the last floor. The view is very beautiful from the apartment.

 

An Apartment in Mumbai goes for Rs 20 crore and Rs 61.5 crore in Delhi

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MUMBAI

An apartment, measuring approx. 3000 sqft, recently was dealt for about Rupees 20 crore on Carmichael Road. This large apartment has a huge entrance lobby, living room with an adjoining dining area and a separate study room. The master bedroom has an en suit bathroom with a walk-in closet and beautiful sea views. The apartment has separate servant’s quarters and a covered and an open car parking. The building is equipped with amenities like a garden, pool table and a gym . Carmichael Road is one of the most posh localities of Mumbai with several oldstyle bungalows and apartment buildings.

PUNE

Lately, a 3-BHK apartment was sold at a price of Rupees 44,33,000 in Rich Woods, a new project by Rama Developers in Chikhli in the city. The price included of the car parking charges . Rich Woods is a project of 180 large 2 & 3 BHK apartments in 07 imposing towers with high-tech amenities and facilities. Chikhli is directly accessible from the Nashik highway and has great connectivity to the Pimpri Chinchwad area. This Group has made its mark in the city with two well executed projects to its credit. The base rates are being quoted at  3,100 per sqft, while the general residential rates in the area range between Rs 2,600 per sqft and Rs 3,100 per sqft. Chikhli area has grown as a feasible residential locality. It has become a perfect option for investors as well as ultimate users.

DELHI

In a latest deal in Delhi , a 600 square yard plot was dealt at a range of Rupees 61.5 crore. This old Ground+01 property is located in Shanti Niketan which is  a rich residential micromarket in South Delhi. The property has been purchased by a well-known builder in NCR for redevelopment. The builder plans to build a Ground+3 storied structure and construction activity will start soon. The builder has already started marketing the project . The first floor is been quoted for Rs 20 crore, the second floor for Rupees 20.5 crore, and the third floor for Rs 21 crore. The project commands a premium in terms of price, due to its South Delhi location which is well connected to all the major business complexes in the NCR and most of the foreign embassies are in the neighbourhood in the location.

NRI TCG and US Based VRT Invests Rupees 270 crore in Mumbai, National Capital Region Residential Projects

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NRI investor Purnendu Chatterjee’s TCG Real Estate and US-based Vornado Realty Trust, is in the final stages of investing Rupees 270 crore in two residential developments in NCR and Mumbai. The fund will invest Rupees 150 crore and Rupees 120 crore in housing projects in Mumbai and Noida, respectively, and pick up 40-45 %  in each of the projects, said a person known with the fund’s plans.

“The 400 million  Dollars Fund works with land-owners, state governments and developers; particularly medium size developers who lack both money and management talent, to produce international quality real estates, which supply to the high demand sector of the industry. The Fund takes both controlling and minority positions. The Fund also looks at investing in related sectors such as construction, mortgage, lending and infrastructure. The Fund invests between  5 million Dollars to 50 million Dollars in each investment. TCG is the property development and investment arm of The Chatterjee Group.

 

Real Estate Sector is Worried Over Hike in Home Loan Rates by RBI

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The hike in interest rates may have a wrinkly effect on the real estate sector with construction cost rising up. This announcement by RBI will have a negative impact on real estate developers already spining under pressure from lack of capital from financial institutions. It comes as bad news even for those looking to buy a house as loans would become more costlier. Several banks like ICICI Bank, SBI and IDBI indicated that they would increase interest rates on loans in near future.

Chairman of Credai said, “The 50 BPs hike is harsh. This will deepen the cash crunch scenario which industry is facing right now. Taking out funds of the market cannot be the only solution to overcome inflation. The current pressure on prices is global in character and reflects supply side bottleneck. The solution is not monetary tightening. To me it is surprising and anti-housing policy.” Ashok Tyagi, group CFO, DLF said, “hiking interest rate has never been a tool to fight inflation. This could start impacting supply side investment.”

Govt Approves FDI Proposals

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The govt. today approved 21 foreign direct investment (FDI) proposals worth Rupees 1,027 crore, including ACB India and Oriental Tollways. FIPB took a total of 47 FDI proposals but the board delayed decisions on 17 applications and refused nine, the Ministry of Finance stated.

The board gave its approval to ‘Oriental Tollways Pvt Ltd’ (Delhi and Haryana) for launching of foreign equity in an investing company. The proposal may bring in FDI worth Rupees 475 crore and ‘Darjeeling Organic Tea Estates’ application for launching of foreign equity and to a collaborator to handle the business of production, distribution andalso the export of tea was approved by the Foreign Investment Promotion Board. The firm aims at FDI worth Rupees 93.37 crore.

City Realtors used Brokers to Grab Lands from Farmers

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AHMEDABAD: With each unaccounted income disclosures in the recent income-tax raids on four city-based groups, I-T detectives are disclosing newer shady froth of real estate business in the city. I-T officials have found that the raided real estate groups had given so much of freedom to brokers to grab lands from farmers. The property consultants would strike the deal with farmers, mainly to adjust the cash transaction, and realtor would appear only at the time of documentation.

Around 200 I-T detectives had on April 28 carried out a search and survey operation on 60 premises of four city-based groups, three of which are popular realtors, while the fourth group has one of city’s well-known jewelers as key promoter. The I-T officials searched many land brokers attached with the realtors and has got Rs 6 crore black money disclosure from one such broker from whom Rs 20 lakh cash was also captured. The total disclosures in the operation have already touched Rs 66 crore. Still more such disclosures are to come while premises of the fourth group are still sealed as the promoters are out on a trip to Singapore.

I-T officials have already struck gold in the first raid this financial year and have captured Rs 8.3 crore cash from realtors and property consultants. During the search at the jeweler’s premises, the officials found a difference of Rs 60 lakh in the stock officially declared and displayed at the shop. The department is now closing in on different ways evolved by realtors to avoid tax and ground black money. However, city realtors said that employing brokers while dealing with farmers is no new thing, but now these brokers are used to do foggy deals.

“A builder would book a land at the prevailing rate with token money given through brokers. The brokers would keep the farmers hanging and depending on the cash flow of the builder he would go ahead with the deal on his will,” the official said.

The department has earlier already found that the realtors searched used cheque transaction to record cash payments by the buyer against a property.

Income Tax Department Procured Real Estate worth Rs 2,500 crore in a Fiscal

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NEW DELHI: The Income Tax Department became one of the largest purchasers of real estate properties last year as it embarked on a mega expansion fling to spread its establishment for enhancing taxpayer services in the country.

The department, which has recently started a special drive to check frequency of black money in the country’s real estate sector, has acquired high-worth properties worth about 2,500 crore in more than 20 cities in the last year alone.

The largest possession by the department has been at the cost of more than 2,000 crore for the purchase of office space in the civic centre near the national capital’s marketing hub, Connaught Place. The civic centre is the tallest building in Delhi. The department has likewise purchased 56 staff quarters worth more than 89 crore at the pricey Bandra-Kurla complex in Mumbai.

“All the purchases have been done in order to inflate taxpayer facilities and to provide better living and working facilities for the department staff. No doubt the department’s purchasing power has been the largest in the last financial year.”  The department, with these possessions in the real estate sector has probably become the largest government department to acquire and create real estate in the country, the Income Tax commissioner said.

The shopping bucket of the department, has other high-profile acquires and possessions like creation of a training centre and hostel facilities for new comers of the Indian Revenue Service (IRS) at their alma mater – National Academy of Direct
Taxes (NADT) in Nagpur at the cost of Rupees100 crore.

In Chandigarh, the I-T department has purchased 5,000 acres of land for office space at the cost of more than Rupees 33 crore, a centralized air conditioned I-T office at Udaipur at the cost of more than Rupees 16 crore, acquisition of land for creation of office building for the department in Mumbai at about Rupees 23 crore and land measuring more than 9,500 sq m at Jamnagar, Gujarat for office building at  Rupees 8 crore.

Another set includes office building at Siliguri for 5.5 crore and a separate creation of 49 residential sectors and guest houses at Siliguri in excess of 10 crore. One more big acquirement by the department has been made at Muzzafarpur in Bihar for building staff quarters at the cost of more than 21 crore.

The department has also been sustained by the success of direct taxes (income tax) collection which was about 4.50 lakh crore in the financial year 2010-11. Despite the department paying 72,000 crore in refunds, the stout direct tax collection is the highest in any financial year.

Keerthi Estates Brings Up Luxury Villas in Hyderabad

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Hyderabad-based real estate developer Keerthi Estates, with huge experience and long term operations in Hyderabad and Bangalore, has launched its premium luxury residential complex – Richmond Villas – in Hyderabad. The gated-villas project, consisting of 157 (4bedroom) villas, is coming up over 24 acres of blossoming green land near Andhra Pradesh Police Academy circle, close to the new International Airport.

Managing Director, Keerthi Estates, K Anil Kumar Reddy, said, “Each villa, ranging from 3,400 sq ft over 300 square yards to 4,000 sq ft over 466 sq yds, will be built as triplex and will have a huge multipurpose hall, which could be converted into a mini theatre or bar or gym based on the buyer’s choice”. Each villa would cost between Rupees 1.25 crore and Rupees 1.85 crore.

The project is well connected to all the reachable amenities within 10-15 minutes like hospitals, educational institutions and shopping, the IT hub, financial district, Hi-tech city, international schools. The company has to complete the project by the end of 2013, so it has already taken all the approvals for the project and began construction. They have already completed two model villas and work on 15 villas is now at a later stage. There has been good response to the project so far and more than 30 villas are booked.

With around 52 per cent open area in the gated villas project, the company is offering key facilities such as a smartly designed clubhouse along with sports facilities, a swimming pool and an air-conditioned gym among others. The project also offers a waste management system with sewerage treatment plant, supported by water harvesting system and solar fencing all around.

Keerthi Estates has so far built over 3-million sq ft of residential and commercial space and some 1 million sq ft is currently under development in Hyderabad and Bangalore.

CREDAI to Handle Corruption in Real Estate Sector

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“The CREDAI today presented an action plan to union urban development minister Kamalnath at the two-day 11th National Conference (NATCON) of CREDAI in Singapore to handle corruption”. CREDAI National President Lalitkumar Jain said, the developer community is being marked as being pollute. He said the association would seek an appointment with the prime minister to discuss ways and means to check the cancer of corruption rather indulging in blame game.

“Our country is, sadly though, rated to be one of the most corrupt nations of the world. Any citizen of the country will feel hurt and disgraced. The real estate sector is rated to be the biggest contributor to this dishonor. Jain Said, “I and all my colleagues in real estate  feel seriously insulted.” He added that developers were sufferers of the system and not the beneficiaries. He also said the real estate sector was being named as the reproduction ground for black money and corruption. “It is the various government methods, procedures and delays in clearances that give birth to corruption. We curse every person who exploits us to give us a lawful permission which we deserve immediately and without any dishonest demand,” he said.

“After investing madly in land, even a day’s delay in approvals adds to the costs and in extreme anxiety and when speed becomes important, the concept of speed money crawls in,” he pointed out. Every developer has to get 40 certificates, No Objection Certificates and clearances. “The McKinney report to the Government of India as long ago as in 2001 said that land approval related obstacles are costing 40% higher to home cost,” he said. CREDAI presented two key documents to Kamalnath – an anthology of best practices by some state governments that can be followed by the rest of the country and a extensive checklist for approvals.

Sayaji Hotels Ltd to Invest Rs100 Crores in Pune; Plans to Expand Operations

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On completion of two years in Pune, Sayaji Hotels Ltd is planning to invest Rupees100 crore in Pune. . “This expansion will be completed by September 2012
with a total investment of Rs 100 crore” said, Sajid Dhanani, MD, Sayaji Hotels Ltd. The group is planning to expand its operations with a sports and cultural club, restaurant, mall, meeting and conference facilities and service apartments.
“The demand for hotels and restaurants is increasing at a good rate in Pune. Dhanani’s estimate is 22 per cent as far as hotel business is concerned. Though supply of rooms in the last two-three years has increased considerably, the restaurant business is on the rise far more speedily.
Moreover, Sayaji Hotels further plans to influence the brand image it has created in Pune by exploring in other locations like Bangalore, Chennai and Gurgaon wherein majority of its customers come from automobile, Information Technology and Engineering industries. It also has plans to expand Barbeque Nation brand from current 18 divisions in the country to around 33 divisions by the end of the year. The new Barbeque Nation restaurants will be opened in majorly in metropolitan seven cities such as Mumbai, Delhi NCR, Chennai, Bangalore, Hyderabad, Kolkata and Pune. The group’s turnover was roughly around Rupees 190 crore for the financial year 2010-11.

Chhattisgarh Developers to Follow CREDAI Transparency

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CREDAI is coming up with new system for Real estate developers in Chhattisgarh. They will have to follow way to ensure transparency in the dealings of the sector. “The sector has been under the scanner of customer and the real estate developers across the country are on one operation, that is ‘transparency’ and hope to achieve it through the code of way initiated,” National President Lalit Jatin of CREDAI said.

The members in the state were prompt and had signed the declaration to follow the new rule drafted by the apex body of the real estate developers. The state will also have a consumer redressal forum managed by the Confederation. Under this new system, it would be compulsory for the developers to mention the actual usage area to buyers, reimbursement in case of project delay and honouring of the agreement between the two parties, said Anand Singhania, president of Chhattisgarh Chapter of CREDAI.

Moreover, there should be a true revelation of the property under development in the
“Title Certificate” from a solicitor or an Advocate showing the rights and obligations of the developers along with the Agreement for sale. All sanction from the sanctioning authorities like approved plans and starting certificates, should be made available for scrutiny of the purchaser at the time of signing the agreement.

The members will have to follow set of rules laid down by the national body. “If any member defy them, would be removed from the Association,” Jain said, also added that they would appeal people not to buy any property from the developer
who was not a member of CREDAI.

2008 DDA Scheme Flats: Hundreds lie Vacant at Vasant Kunj Without Water,Maint & Power Supply

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NEW DELHI: One of the pushiest area of South Delhi Vasant Kunj, take a stroll into Sector E and you get a chill down your spine. Rows and rows of vacant flats give a stare at you. It’s weird, haunting and unsettling. But this ghost township is part of the greedy DDA’s prestigious 2008 housing scheme, for which millions of Delhiites had put their luck and money at stake.

It’s a sprawling area housing nearly 800 DDA flats, but it’s lonely and isolated out there. Only 50 families are still hanging on to what they once thought was their dream home. So here’s comes a note of caution. If you have bagged an allotment in the 2010 lucky draw at Vasant Kunj, you could also be a victim of DDA’s disregard. Astonishingly, the agency has failed to provide even the basic amenities of water and electricity even 3 years after the allotment of the flats.

One of the residents, Harish Chand, is still battling it out in his infirm flat at Pocket 2 in Sector E. He has nobody next door, because most allottees have never turned up to live there. But most of these flats have been robed,  electric wires hang dangerously and meters have all been stolen. Burglars have a field day in this area and dirt spills over from open drains. Taps run dry and Harish Chand has no option but to buy drinking water. The Delhi Jal Board (DJB) has made it clear; it does not have water to provide. “When we complained to DDA about lack of water, we were directly told that DJB cannot supply water. We have been surviving on water from tankers and tube wells. We are barely surviving as just 50-odd families live here. But we still have to
buy drinking water. Pipelines are broken, there’s no impression of maintenance, DDA had just refused to act on it,” said Harish Chand. His suffering began much earlier. Harish and many others had to wait till April 2010 to take possession after a scam hit the DDA housing scheme in 2008.

Manoj Jain, who lives in Punjabi Bagh in his parental house, said that someone was illegally tapping into his meter and stealing power. “I keep coming back to check my flat, the lock outside my flat has been broken and my electricity meter has been tampered. I realized this when I got an overblown power bill this month,” said Jain. There is also no approach road leading to these flats. “I moved into my flat a month back and there are trucks parked there which creates a security threat,” said Rajesh Kayala.

Now, DDA is claiming that construction of the approach road will start in a month’s time. “The tenders have been proposed also floating tenders to provide RO water to the flats. We are now sending water tankers to the area,” said a DDA official.

 

SBI to End its Teaser Home Loan Scheme on April 30th 2011

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State Bank of India (SBI) will put to an end to its puzzled home loan schemes by the end of April 2011. The interest rates offered on its home loans will now be recalled by floating interest rate schemes, which are comparable with those offered by other commercial banks and housing finance companies. All loans from May 1 will  draw an interest rate of 9.5-10.25 per cent, depending on the loan amount. Loans up to Rs 30 lakh will be available at 9.5 per cent (one percentage point above their base rate). Loans in the Rs 30-75 lakh range will be charged 9.75 per cent (125 basis points above the base rate). And, those above Rs 75 lakh will be charged 10.25 per cent (175 basis points above the base rate). Though, these rates would move in line with the changes in the bank’s base rate that is reviewed every quarter.

Earlier, the RBI had asked banks to stop giving teaser loan rates, since it believed such loans would blow the asset quality of the bank’s home loan portfolio. Puzzled loans offer advances at a comparatively lower rate of interest for the first few years, after which rates were re-set at higher rates. SBI is the last one to discontinue such special loans. Under its SBI Easy Home Loan and SBI Advantage Home Loan products, one could get loans for 8-8.75 per cent in the first three years. After the third year, the rates would get reset at the current floating rate structure. At 8.75 per cent, a 20-year-old loan on Rs 30 lakh would come to Rs 884 a lakh. At 9.5 per cent, you would now be paying Rs 932 a lakh.

Those who already have SBI’s puzzled home loans and are still in the initial three years, the old rates remain applicable. The new rates will only apply to new applicants. Among the housing finance companies, LIC Housing Finance is still offering a fixed interest rate of 9.9-10 per cent for the first five years and, thenafter, the existing rates will apply. A quick calculation on apnaloan.com showed that the average rate for a 20-year period still works out in SBI’s favor. The average rate for SBI was 9.5 per cent, while that for LIC Housing was 10.5 per cent for the same period.

SBI has also said there would be no penalty on foreclosure on home loans. The bank used to charge customers a 02 per cent penalty on fore – payment of the home loan. It will also introduce a graded processing fee, which will increase  according to the loan amount.

Fathers of Balwa, Goenka Joins DB Realty Board: Mumbai

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Another resignation of independent director of DB Realty Board from the board of the company. The real estate company introduced Krishna Murari Goenka , father of the promoter Vinod Goenka , and Usman Balwa, father of the promoter and the previous Managing Director Shahid Balwa, as additional Directors.

Michael McCook, was a non – executive Director  who resigned from the board last week. He was on the board since June 28, 2008 as a nominee director of financial investor Bollywood Mauritius Holdings, Mauritius. Bollywood Mauritius holds 4.66% stake in DB Realty. The company on April 21, appointed KM Goenka and Usman Balwa on the board, announced in a notice to the stock exchange.

The Delhi Court had rejected the bail pleas on April 20 of five corporate executives, including Swan Telecom Director Vinod Goenka, named by CBI as one of the accused in 2G scam. DB Realty’s former managing director Shahid Balwa in 2G Spectrum case is already in Tihar jail.

11% Hike Observed in Mumbai Rentals

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Rising real estate rates may have resulted in a spiky decline in property sales, but it has lead to a good growth in rental value in Mumbai and other metropolitan cities in the country. Mumbai and the outskirts of the city have seen an 11% growth in rental value in the past year. The figure for Bangalore, Pune and Delhi has shot up by 13%, 11% and 9% respectively.

Unexpectedly, rental value in South Mumbai, one of the most preferred locations to stay in the city, has seen a drop. The Worli residential market saw a 21.31% drop last year, while the figure for Prabhadevi, Parel and Bandra (West) fell by 18%, 12% and 11.57%. “The rent in South Mumbai had gone up to the roof. It is still unaffordable. So, people are shifting towards the suburbs and outskirt of the city,” a real estate expert said. However, the rental value in the suburbs too has shot up radically. Borivli (West) witnessed a record of 42.25% growth, while the rates have shot up by 35.04% in Powai, 28.32% in Malad and 20.40% in Kandivli (East). The Mumbai metropolitan region too has seen a rise in rental value. The figure for Mira Road and Seawoods shot up by 39.28% and 36.36% respectively in the past year.

A real estate expert featured the rise in rental value to exorbitant property rates in Mumbai. “People prefer to stay in rented homes instead of buying a house. Also, there is a huge arrival of people in the city. As a result, there is a huge demand for rented homes,” a study says. Government data compiled by the stamp duty department also shows that there is a 35% of rise in the number of lease agreements being signed in the city.

‘M3M Golf Estate’ in Gurgaon – 7 Star Luxury Apartments

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M3M India Ltd. chains up with Larsen & Toubro, one of the leading construction firms to build their finest luxury residence in Gurgaon which is 7 star to be named as “M3M Golf Estate”..  This project will be constructed by L&T in collaboration with LERA International, the world’s leading consulting firms. The estimated worth of this deal of phase – 1 is about Rupees 400 cr, out of a total investment of over Rupees 2,000 cr. Lera International will be providing it’s most modern and pioneering structural engineering designs. In a press release it is declared that the project will be completed in 33 months much prior to the scheduled time of completion of 42 months.

The project is tactically located on the Golf Course Road (Extn.) in Sec 65, Gurgaon, which is 30 mts drive from Indira Gandhi International Airport spread over an expansive 75 acrs. Graham Cooke, the world famous architect has designed the magnificent apartments around a 9 hole reversible ‘In City’ golf course. The architecture is a perfect fusion of eco friendly, green sceneries and cutting edge designs. The project is designed by world’s finest architects ARCOP headed by Ramesh Khosla. The project has already received awards internationally in USA, UK and Dubai, as “Best Upcoming Golfing Lifestyle Residence in India” .

“In line with our commitment to give the best of quality and timely delivery, we are happy to appoint L&T which is one of the world’s best construction groups. “M3M Golf Estate” is our much honoured project, internationally acclaimed, and we have designed this, keeping in mind the taste, class and the requirements of our target clients. We ensure the use of latest technology and safety of structures” said Basant Bansal, Chairman and Managing Director, M3M Group.

M3M Golf Estate offers high – tech ultra modern luxury apartments with all modern amenities like wi-fi in all buildings, roof- top jogging path, and superior class club houses. These apartments will trait world class amenities, unique outdoor and indoor living spaces, modern kitchen, sated with fittings and high quality end fixtures. It also offers aesthetically designed golf course.

India’s Brand Capital Hires Real-Estate Manager

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The ad-for-equity business, the Brand Capital of publishing group Bennett, Coleman and Co. Ltd., has hired real-estate advisor Knight Frank India Pvt. Ltd to manage its INR5 billion real estate portfolio.

“This is the first initiative of its kind where we have taken up such asset management and advisory for a large corporate house,” said Amit Goenka, national director of capital transactions at Knight Frank.

The real estate firm will take care of the portfolio; will provide direction on timely exits, maintenance, reporting and analytics, valuation, assistance with leasing, compliance and collections.

Bennett Coleman, the publisher of The Times of India and The Economic Times, initiated in India the concept of equity being swapped for advertising space and time which is also called private treaties.

Other publishers and media businesses follow the model, including HT Media Ltd., publisher of the Mint and the Hindustan Times; Network18 Group, which operates the CNBC-TV18 and CNBC Awaaz TV channels; DB Corp. Ltd., publisher of the Dainik Bhaskar and the Daily News and Analysis; and New Delhi Television Ltd., which runs the NDTV 24x7and NDTV Profit channels.

Brand Capital has 13 real estate firms in its portfolio, including Emaar MGF Land Ltd., Sobha Developers Pvt. Ltd., Nitesh Estates Ltd., Shriram Properties and Lavasa Corp. Ltd., as per the organization’s web site.

“We have some other such orders in the pipeline from large financial institutions, ultra high networks, individuals and family offices,” Goenka said.

Anshuman Magazine, chairman and managing director of CB Richard Ellis India Pvt. Ltd., said, a real estate advisory firm, features this trend to flying real estate prices that have made holdings in land and property an important part of a company’s total business. He also says, “We have been managing real estate portfolios for various stategovernments, however, in the private sector, the trend has picked up recently.”