companies

Godrej Properties Ties up with SBI to Make Projects and services Available to Customers across India

by Paul Joseph July 21, 2011

Godrej Properties, the real estate arm of Godrej Group, has entered into a memorandum of understanding (MoU) with State Bank of India (SBI) to create multiple platforms to make their projects and services available to customers across India and abroad. Under the pact, both the companies plan to host various co-promotional activities for customers in India and for non-resident Indians in countries like the UK, US, and Singapore, the company said in a statement issued here today. “We are very excited to associate ourselves with State Bank of India and are looking forward to a long-term relationship that will benefit our customers while also expanding our customer base,” the Godrej Properties Vice-President (Marketing and Sales), Mr Girish Shah, said. The company will showcase their sustainable homes while SBI Home Loans will consider offering favourable home loan rates for its residential properties located in Ahmedabad and Kolkata on promotional platforms, which will include seminars, workshops, exhibitions, and road shows, the release said. These favourable terms could eventually be extended to other GPL’s residential projects as well, it said. “This is a great opportunity for us to work with Godrej Properties. We hope this association proves to be a long-lasting relationship and we will work together to fulfil the dreams of thousands of people,” the SBI Chief General Manager, Mr Bhaskar Niyogi, said.

Tagged as: companies, create-multiple, customer, girish-shah, godrej-group, kolkata, manager, real estate, real estate developers, real estate trends, sales, singapore, state-bank, under-the-pact

0 comments Read the full article →

Govt May Approve Amendments to Benami Property Law Today

by Paul Joseph June 30, 2011

The union cabinet is expected to approve amendments to the law on benami property law on Thursday to demonstrate its seriousness in fighting the menace of black money. The amendments to the Benami Transaction (Prohibition Act) will give the government the power to confiscate any property that is declared as benami, or held in the name of a person who has not paid the consideration for the property. Although the Parliament had passed a law in 1988 prohibiting benami deals , it was never implemented, as the rules were not framed. The government had accelerated the process of framing rules to tighten the provisions in the old legislation after facing outcry over the issue form various quarters. It is believed that a substantial portion of the black money generated is parked in real estate in the names of friends and family. The new law will set up an authority and empower it to confiscate an asset deemed to be benami if the owner fails to provide proven source of earning to acquire that property. The old law had also provided for setting up such an authority, but it was never notified. Under the new law the government will seize benami property, auction them and pass on the proceeds to states, where the property is located, for development activities. The act will also make it mandatory for all property deeds to be verified by a CA. “This will reduce black money and boost government revenue and requirement for a mandatory audit will make it simpler for the authorities to keep track of deals,” an official said. Benami transactions are primarily prevalent in the real estate sector, but the 2G scam has revealed that the possibilities exist in other sector as well. Some of the companies that received telecom licenses in 2008 were actually doing so for other undisclosed companies.

Tagged as: authorities, benami, companies, faridabad, make-it-simpler, parliament, real estate, real estate developers, undisclosed

0 comments Read the full article →

India Trying to Build Consensus on Liberalising FDI in Retail

by Paul Joseph June 29, 2011

India is trying to build a consensus on liberalising foreign direct investment (FDI) in retail and defence, finance minister Pranab Mukherjee today told a gathering of business leaders and policy makers in Washington. “Discussions are under way to build a consensus on further liberalisation of the FDI policy in retail and defence,” Mukherjee said. Differences exist within the Indian government on the appropriate policies for foreign direct investments in the two sectors. The commerce ministry has proposed majority FDI in defence and retail, but the defence ministry wants a maximum of 49 per cent FDI in its field. Some other ministries are opposed to the freeing up of retail and have asked foreigners to invest heavily in cold chains and retail logistics. Mukherjee will be holding talks on bilateral economic partnership with US treasury secretary Timothy Geithner from tomorrow. The US wish list includes the opening up of Indian industry and the financial sector. “We are just at the very beginning of unlocking the enormous potential of this relationship,” Geithner told the same gathering. “India is at the point now where future growth will depend on the success of the next wave of reforms,” Geithner added. Washington is keenly awaiting New Delhi’s moves on retail. The Indian government allows 51 per cent FDI in single-brand retail and 100 per cent in wholesale cash-and-carry. However, multi-brand retailers such as Walmart and Tesco are barred. An inter-ministry group on inflation under Mukherjee’s chief economic adviser Kaushik Basu has recommended the opening up of the sector. However, the government has sought time to bring on board its allies as well as the Opposition parties, who fear for the future of small retail stores. Research shows a well developed retail chain can eliminate middlemen in the food business — who pocket 60-80 per cent of the price paid by a consumer. Organised retail comprises just 4 per cent of the business. Limits on defence FDI, now at 26 per cent, have become a bone of contention between not only the defence and commerce ministries, but also between foreign investors and Indian corporate houses. Foreign aerospace firms backed by European embassies have been making a case for 74-100 per cent stake; only then can they bring proprietory technology into India, the companies said. Indian corporate houses engaged in defence such as the Tatas, Mahindra and L&T are, however, bitterly opposed to such a blanket relaxation and have instead argued in favour of relaxing FDI to 49 per cent, with Indians remaining in majority control. Assocham in a note to the government has also sought FDI cap to be kept at 49 per cent. Ficci has even said that 49 per cent FDI should be allowed as a special case.

Tagged as: business, companies, defence, european, fdi, financial, food, india, indian, moves-on-retail, opposition, per-cent, real estate, real estate developers, walmart

0 comments Read the full article →

Sahara Real Estate in trouble Over Use of Third Party Account

by Paul Joseph May 12, 2011

A Sahara group company, which has raised Rs 4,843 crore by issuing optionally fully convertible debentures (OFCDs), is not using its own bank account to handle this money. In March, the Registrar of Companies (RoC), Uttar Pradesh and Uttarakhand, based in Kanpur, sent a notice to Sahara India Real Estate Corp for using a third party’s bank accounts to receive funds from investors. The debentures were issued by Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation. The cheques were received in the name of “Sahara India”. According to the complainant, the investors put money in Nirman Bonds and real estate bonds. As instructed by the agents, they issued cheques in favour of “M/s Sahara India”. When they got the receipts, they realised these had been issued in the name of a third party. “The cheque was taken in the name of Sahara India. However, the receipts have been issued by a third company. Is this action approved by the Registrar of Companies?,” the investor asked in his complaint. Business Standard sent several mails and reminders to the company over the last couple of weeks. However, it responded late tonight, seeking another 48 hours to reply. However, in a written response dated April 19, 2011, Sahara India Real Estate Corp told the registrar that “Sahara India Real Estate Corporation, through an agreement with M/s Sahara India, has agreed to utilise infrastructure, including bank accounts and other services, of the firm for private placement of optionally fully convertible debentures.” The company said this did not attract action under Section 297 of Companies Act, 1956, as no director of the company was an interested party as a partner in Sahara India. However, neither the application forms nor the receipts mention this agreement, keeping investors in the dark. According to legal experts, this is prima facie a wrong practice and may lead to misuse of funds by the third party, impacting the interests of investors. “Technically, it is wrong. How can I use somebody else’s bank account?” said Kanu Doshi, a senior chartered accountant and dean of Welingkar Institute of Management, adding he did not want to comment further as the matter was sub judice. The case is scheduled to come up on Thursday. The Supreme Court has asked Sahara to submit a list of agents and the formats of application forms it has been using to raise money through debentures. According to Sahara India Real Estate’s submission, the company has 6.6 million investors. Sebi guidelines clearly specify that any issue of equity or debt to more than 49 people is governed by the Issue of Capital and Disclosure Requirements norms. Sebi mandates safeguards like appointment of dedicated bankers to handle public issues. Also, subscription funds are to be held in an escrow account during the period of allotment of shares before being transferred to the company’s account. Sebi has issued an order banning Sahara from raising money through OFCDs for violating public issue norms.

Tagged as: application, companies, delhi, estate, investment, mumbai, real estate developers, real estate trends, sahara, sahara-india, supreme-court

0 comments Read the full article →

ED to Attach Properties of Unitech and Swan: Companies Allegedly Involved in 2G Scam

by Paul Joseph April 28, 2011

The Enforcement Directorate (ED) has told the Supreme Court that it will ‘attach’ the properties of two companies – Unitech wireless and Swan Telecom – allegedly involved in 2G scam within 2 months. At 10:08 am, shares of Unitech were trading 4.45% down at Rs 38.65 and shares of DB Realty were trading 4.07% down at Rs 99 on the Bombay Stock Exchange. “The properties of the (telecom) companies worth Rs 2000 crore will be attached,” said senior counsel KK Venugopal on behalf of ED – that investigates money laundering and probes violation of rules governing foreign exchange – to a bench comprising Justice GS Singhvi and Justice AK Ganguly. On Wednesday, ED presented a fresh status report, giving the Supreme Court, an updated account of its investigation. Venugopal, however, did not name the two companies in the open court. But he seemed to be referring to Unitech and Swan which have been accused of getting mobile services licences cheap by conspiring with former telecom minister A Raja. Attachment refers to the process of identifying properties that ED thinks is part of the proceeds of crime so that they cannot be sold. The fact that Venugopal was referring Swan Telecom, now known as Etisalat DB and Unitech Wireless could be inferred from the fact that immediately after the reference to attachment, he spoke on the first chargesheet filed by the Central Bureau of Investigation before a Delhi Court on April 2. He named the two companies-Unitech Wireless and Swan — as beneficiaries of the ’scam money’ . The court then asked the ED counsel how long the entire process of attachment of properties was expected to take. “Within two months the entire process of attachment of the properties of the companies and adjudication under the provisions of the FEMA (Foreign Exchange Management Act) and PMLA (Prevention of Money Laundering Act) will be completed,” was Venugopal’s reply. Venugopal said ED needed two months as “huge benami properties were involved” . Adjudication is a quasi-judicial process, usually carried by the ED itself, in which those accused of wrong-doing can defend themselves . ED was likely to send notices to the promoters of the two companies and the companies themselves , within the next two weeks, according to people close to the investigation . A spokesperson for Unitech said these developments will not affect its real estate business. “Reports suggest that the ED will attach properties of some telecom companies named in the CBI charge-sheet . Unitech, a company engaged in real estate development, has not been named in the CBI chargesheet . We would like to further clarify that this on-going matter pertains to Unitech Wireless, which is a separate venture in the telecom business. Further, this matter will not have any adverse affect on Unitech and/ or its real estate business,” said the spokesperson. In the status report placed before the apex court on Wednesday ED also said it has started investigations into 5 companies alleged floated by the sister of corporate lobbyist Niira Radia in British Virgin Islands under the Foreign Exchange Management Act or FEMA. At this Justice Ganguly asked, “she is the sister of same person whose name has figured in the scam? Venugopal replied in the affirmative . He was apparently referring to corporate lobbyist Radia’s sister . He also said huge money was involved in the scam as fresh revelations were coming to the fore. “If the bribe money was Rs 3,000 crores, then the FEMA violations were suspected to the tune of Rs 4,000 crores,” said Venugopal. At this, Justice Ganguly said, “the figures are getting multiplied by the day” .

Tagged as: companies, entire, gurgaon, investigation, management, properties, reference, sister, supreme, supreme-court, telecom, unitech, wireless

0 comments Read the full article →

The Current Chennai Property Market

by Paul Joseph April 16, 2011 Uncategorized

A city in Tamil Nadu on the Bay of Bengal is shining by the name of Chennai in its earlier times famous as Madras is in the midst of the most beautiful cities in India with its inspirational intellectual inheritance and shrine structural design. Sited in a state with many brooks and rivers and by way of a lot of population of 6.9 million, Chennai Prperty is abstractedly positioned from the national capital Delhi and has been a chief and one of the four metropolitan cities since the historical times. Chennai property is the fifth most crowded metropolis in Indian Real Estate and fourth most populous metropolitan. In the midst of the materialization of Multi National Companies in Properties in India, Chennai’s financial system at the moment has broad base in technology, hardware manufacturing, car, computer and healthcare industries. The city is indeed India’s second chief exporter of software and has caused a growing first choice of the city as a trade centre by most important international companies, who have invested massively in the financial system. The Chennai Real Estate Market has seen an intensification of almost 200 % in the last few years but among the universal slump in the property industry, Chennai real estate has slowed down. The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to buy a home in the city.

Tagged as: chennai, city, companies, estate-market, india, materialization, midst, multi national companies, prices in chennai, real estate, residential real estate

0 comments Read the full article →

Orris Floreal Towers – Completely Sold Out

by Paul Joseph April 7, 2011 Uncategorized

Orris Infrastructure, one of the leading real estate companies, has received a phenomenal response from the customers for its commercial division in “Floreal Towers” by selling 100 per cent of the project in a short span of time. The project is a part of commercial-cum-retail-complex situated in Sector 83, New Gurgaon The world class amenities being provided and the strategic location in terms of convenience and comfort has attributed for the complete sold out status. The construction of the project is in full swing and is expected to be completed by March 2012, according to a company press release. On the new initiative, Vijay Gupta, CMD, Orris Infrastructure, said, “We are happy for the overwhelming response of the commercial division of Floreal Towers. In Gurgaon, the demand for office space is very high as it has become a favourite destination for the companies, be it national/multinational, and therefore we came with the commercial complex at Floreal Towers. We are hoping to deliver this division by 2012-end. After looking at the kind of response of the customers, we will be coming up with such projects soon in Gurgaon itself.” Floreal Towers is a premium commercial complex spread over a total area of seven acres. Set on the National Highway-8 in New Gurgaon, the green project has location advantage of Dwarka Expressway, proposed Metro station, ISBT and airport are within an arm’s reach. Artistically designed, the project offers world class infrastructural facilities like central air conditioning, 100 per cent power backup, 24

Tagged as: companies, customers, faridabad, floreal-towers, gurgaon, national, press, property prices, real estate, real estate companies, real estate developers, real estate trends, the-commercial

0 comments Read the full article →

Property market in Chennai

by Paul Joseph March 26, 2011 Uncategorized

Positioned on the Coromandel Coast by the side of the Bay of Bengal, Chennai real estate , the capital of Tamil Nadu, boasts of affluent birthright properties and business resources. Copious developed for the duration of the British rule, Chennai property is an increased conurbation of India real estate properties. This city was in historic time ruled by the south Indian dynasties akin to Cholas, Pallavas, Pandyas and Vijayanagar. The Vijayanagar territory was thrived into a huge territory and the art and architecture of the Empire are excellent conceptions. Chennai property is the fifth most crowded city in India property and fourth most crowded metropolitan. By way of the manifestation of Multi National Companies in India, Chennai’s economy these days has wide base in car, technology, computer, healthcare industries and hardware manufacturing. The metropolis is actually India’s second biggest exporter of software and has sourced a growing first choice of the metropolis as a large business centre by principal international companies, who have invested massively in the economy. The Chennai real estate market has seen a boom of approximately 200 % in the most recent few years but by means of the international slump in the property industry, Chennai property has slowed down. The housing property prices in Chennai have grown-up by leaps and bounds turning it tricky for buyers to acquire a residence in the city. Natives are pending the market to steady additional despite recent improvements. This has reasoned a 90% go down in stipulate for residential plans since the start of the year. The commercial area is not being secure either having observed a 15% drop along with media details. The IT MNC’s largely force the requirement for Chennai properties but thanks to the existing recession, a lot of companies have deferred their expansion plans. Specialists yet foresee that the bazaar will bounce back.

Tagged as: chennai property, city, companies, empire, expansion, indian, international, the-requirement

0 comments Read the full article →

HC Respite for Sahara Real Estate-SEBI asked to File Response

by Paul Joseph December 2, 2010 Uncategorized

Giving respite to the Sahara Group entities, banned by market regulator from accessing public fund, the Allahabad High Court has asked the Securities and Exchange Board of India (Sebi) not to take any “coercive” action against the company and file its response by Saturday. The Lucknow Bench of the Allahabad High Court in its interim order said that the decision on admissibility of the petition and injunction sought by Sahara group firm will be taken after the response from Sebi and Registrar of Companies. The order, passed by a Division Bench comprising Justice Devi Prasad Singh and Justice V K Dixit on the petition filed by the Sahara Real Estate Corporation, asked respondents — Sebi and the Registrar of Companies — to file their responses by December 4 and “till then, no coercive action shall be taken by the respondents”. In its petition filed before the High Court on November 29, the Sahara group firm challenged the order of Sebi restraining two entities and promoters, including Chairman Subrata Roy, from accessing market for non-disclosure of information. The Sahara company has argued that only the central government may pass such an order and not the Sebi. The market regulator, according to the company, had issued the order without providing it an opportunity to put forth its viewpoint. Ahead of moving the court earlier this week, Sahara group had come out with a major advertisement campaign in the national dailies saying it would challenge the November 24 order which was dubbed as “irresponsible” and reflected “malice and bias” on the part of Sebi officials. Apart from banning Sahara India Real Estate Corporation (SIRECA), Sahara Housing Investment Corporation (SHICL) and their promoters — including Roy — from raising money from the public, Sebi said there was a need for lifting the veil on corporate fund raising. It also sent a recommendation to the government for taking appropriate action under the Companies Act. In its campaign the group had said that “Sebi has pushed us against the wall, that is why in the interest, image and goodwill of entire Sahara India Pariwar, we have been forced to come out with all the details… Now we shall soon appeal against Sebi’s action at an appropriate forum. “…Certain individuals occupying their office (Sebi officials) act with malice and biased approach which serve no public good and earn only a bad name.”

Tagged as: chairman, companies, delhi, faridabad, mumbai, property prices, real estate companies, real estate india, securities

0 comments Read the full article →

Scam Hit Indian Real Estate Sector Making a Comeback

by Paul Joseph December 1, 2010 Uncategorized

Real estate stocks, which were battered 20-30 per cent last week following raids by the Central Bureau of Investigation (CBI) on banks and housing finance companies in connection with the real estate bribes-for-loans scam, are making a comeback. Shares that rose sharply included Mumbai-based Orbit Corporation, Indiabulls Real Estate, HDIL, HCC, DB Realty and New Delhi-based DLF, among others. The Bombay Stock Exchange (BSE) realty index was up 5.67 per cent at 2,925. The broader index Sensex of BSE was up 0.6 per cent at 19,521. Share prices of top developers rose between 4 and 14 per cent in a single trading session today, after Finance Minister Pranab Mukharjee asked investors not to press the panic button over the housing finance racket. He was talking to reporters on the sidelines of a conference in New Delhi. After the CBI raids and arrests last Thursday, shares of realty companies had crashed 20-50 per cent in just four or five trading sessions. Officials of major banks, LIC Housing Finance and Mumbai-based broker Money Matter Financial Services, were arrested for allegedly accepting kick-backs for sanctioning mega-crore loans to corporates. “As far as the issue (CBI raids and housing loan scam) is concerned, we are examining it but one point I would like to emphasise that there is no need of pressing the panic button. I am in talk with the Reserve Bank of India (RBI) governor and Life Insurance Corporation (LIC) chairman. All the roles, which have been given to the various concerns, they are well protected,” said Mukherjee. Equity analyst S P Tulsian said: “Stocks crashed only due to a knee-jerk reaction by some large players. Also, there was panic by big traders, who had come margin pressure as markets fell due to uncertainty after CBI raids.” According to Tulsian, the valuations of some of the companies, which witnessed a sharp fall, were looking healthy. “A few real estate companies’ stocks seem to be attractive fundamentally now,” he said. Over the past one week, stocks of DB Realty crashed the most. The company lost 50 per cent of its share value on the bourses and touched a 52-week low at Rs 190 in intra-day today, before hitting a 5 per cent upper circuit. Orbit Corporation fell 35 per cent in a week. Ajit Gulabchand-promoted HCC, which built the Lavasa Lake city, was down 34 per cent. It was believed in the market that directors of Money Matters Financial were associated with Lavasa Corporation, as they had agents to sell the company’s properties. Among other stocks, Ansal Property, Marathon Next Realty, HDIL, MVL, Nitesh Estates, Ackruity City, Arihant Foundations, Puravankara Projects and DLF had crashed 15-35 per cent in just over a week.

Tagged as: bangalore, companies, india, noida, real estate india, real estate trends, reserve

0 comments Read the full article →