Indian Property News on 'March, 2008'

Genpact India’s Orissa SEZ proposal rejected

The much-awaited SEZ proposal by the IT giant Genpact India for setting up a Special Economic Zone (SEZ) here was rejected by the Centre recently.

This was revealed by Orissa’s Industries Minister Biswabhusan Harichandan today while replying a written question of BJP member Mohan Charan Majhi. Read More »

More FDI expected in Indian Realty

A move is afoot within the government to liberalize the norms for foreign direct investment (FDI) in real estate. The department of industrial policy and promotion (DIPP) has circulated a Cabinet note proposing waiver of two conditions—the three-year lock-in on foreign investment and the minimum investment criteria of $5 million for joint ventures or $10 million for wholly-owned ventures.

The waiver has been sought for real estate projects, including hotels, according to a government official. The proposal has been justified on the ground that it would boost tourism and hospitality, sectors identified by the government as vital job creators. Read More »

Water Crisis in Gurgaon ends

The Water crisis in Gurgaon ended on Wednesday as the “normal water supply” was restored in all parts of the city.

About one third of the population which was fed by tube wells was getting normal water supply during the crisis also but on Wednesday the remaining two third populations also got tap water after four days, according to Gurgaon Deputy Commissioner Rakesh Gupta.

He said that the residents of Gurgaon should learn a lesson from this small water crisis and everyone “should learn that water is precious”. Read More »

Yatra Capital invests Rs 175 cr in Bangalore Property

Despite fears of slowdown, investments in the Indian properties continue unabated. The Euronext-listed real estate investment company Yatra Capital has invested nearly Rs 175 crore in Bangalore-based property developments.

Yatra has invested Rs 111.62 crore in Palladium Constructions, which will develop a mixed complex of retail and residential buildings, for a 30 per cent stake. Yatra has also invested Rs 63.44 crore in another entity Platinum Hospitality Services for a 30 per cent stake. Platinum will develop a hotel in Bangalore. Read More »

RBI advises Bankers to give last chance to Defaulter to Repay their Loans

The Reserve Bank proposes to make it mandatory for banks to give loan defaulters one last opportunity to repay before taking possession of the mortgaged property.

In its second draft guidelines on recovery agents released today, RBI said the re-possession procedures should follow the “letter and spirit” of the Indian Contract Act and must provide borrowers a final chance to settle loan dues before sale or auction of the mortgaged property by banks. Read More »

Zoom Developers tie up with global Realty Firm

Mumbai-based Rs 830 crore real estate developer Zoom Developers has signed a memorandum of understanding with Yoo Holdings, a $10 billion global property development company, to form a special purpose vehicle to execute medium and large-scale real estate projects on a national as well as international level.

Yoo Holdings is a design-focused property development firm founded by international design guru Philippe Starck and property developer John Hitchcox based out of Canada, USA and Israel. Read More »

Kolkata Municipal Corporation goes after Property Tax Evaders

Kolkata Municipal Corporation (KMC) is yet to realize a whopping Rs 1,000 crore as property tax over the last few years. And now, it has planned to crack the whip on major defaulters and go for attachment of their properties.

Prodded by Mayor Bikash Bhattacharya, the civic body is now preparing a list of major defaulters. Under the glare are some nationalized banks, government departments and private commercial estates. According to KMC estimates, around 55 such defaulters owe the civic body Rs 110 crore as property tax, high enough to bore holes into its development plans. Read More »

Phoenix Mills buys Bangalore land from GKW Ltd

Mumbai-based real estate developer, The Phoenix Mills Ltd, has struck a deal to acquire a 25-acre plot in Rajaji Nagar in Bangalore for around Rs320 crore from beleaguered engineering firm GKW Ltd. And, while it was negotiating the deal, Phoenix Mills and its subsidiary Bellona Finvest Ltd also built a 7.5% equity interest in GKW.

When contacted, Phoenix Mills’ managing director Ashok Kumar R. Ruia confirmed his company had bought some 4.5 million shares of GKW from the market, noting: “We are interested in GKW’s land bank.” As to the specific land deal, Ruia said an announcement about the deal would be made in the “next couple of days.”At the current market price of GKW—Rs90.45 a share—the stake is valued at Rs40.72 crore. It is unclear what Phoenix paid for its shares. GKW chairman K.K. Bangur couldn’t immediately be reached and calls made to his office weren’t returned. He had, however, indicated in the past that his company was looking to sell the plot. Read More »

Mangalore Special Economic Zone sells over 82 acres to ISPRL

The Mangalore Special Economic Zone Limited (MSEZL), which acquired 1,800 acres of land through the Karnataka Industrial Area Development Board (KIADB) in Mangalore taluk, has sold a portion of the land to a public sector crude oil reserve for a whopping sum of Rs 50 lakh an acre.

The MSEZL, which is the special purposes vehicle for SEZ in Mangalore, has sold 82.62 acres of land for Rs 41.31 crore to a public sector crude oil reserve. In fact, the 1,800 acres was acquired by the MSEZL for the setting up of the first phase of MSEZ which includes MRPL Phase III Refinery, Aromatic Complex, Olefin Complex and allied infrastructure facilities. Read More »

Noida Invites Bids for Hotels Near Taj Expressway

Noida Authority has invited bids to set up nine hotels near the expressway being built to the Taj Mahal in Agra. The Noida authority plans to set up three 5-star hotels, two 4-star hotels and four 3-star hotels.

The authority has set a reserve price of 77,000 rupees ($1,919) a square meter (10.76 square feet) and will open the qualification bids on April 24. The plots for the five-star hotels have an area of 24,000 square meters, it said. Read More »