Latest Property News on 'Real Estate Developers'

DLF in talks to sell Mumbai land: Report

DLF, India’s top-listed realtor, is in talks with three Mumbai-based real estate companies — Lodha Developers, Runwal Group and Sheth Creators, to sell a piece of land in central Mumbai, according to a report on Friday.

While DLF is seeking a valuation of 30 billion rupees ($571 million) for the 6.8 hectare property, the potential buyers are negotiating at between 20 billion and 22 billion rupees, the newspaper said, citing an unnamed person.

“Even as all the parties had talks with DLF, the developer is yet to make up its mind, as it is expecting higher valuations,” it quoted the person as saying.

DLF bought the land for 7.02 billion rupees in 2005 from state-owned National Textile Corporation.

Abhisheck Lodha, managing director of Lodha Developers, said the company was not in talks with DLF while an executive at Runwal group also responded in the negative, the paper said.

DLF does not comment on market speculation, the company’s spokesman told.

Oberoi Realty order book jumps 50% at Rs 1,500 crore in FY12

MUMBAI: Oberoi Realty Ltd today said its order book has increased by 50 per cent to Rs 1,500 crore in FY12 as against Rs 1,000 crore in FY 11.

“Our order book has jumped by nearly 50 per cent at Rs 1,500 crore from Rs 1,000 crore in the previous year. We have managed to maintain a robust order-book which is a clear reflection of confidence that our customers have in our product and delivery capabilities,” Oberoi Realty Chairman and Managing Director Vikas Oberoi told reporters here.

“We are satisfied with our performance, which has been fairly stable in the face of challenging market environment prevailing since the last few quarters,” he said, adding the realty prices had been stable and the company sees good demand in commercial space.

“We have received strong collections through customer receipts along with stable rental income from our investment properties. Going forward, we will continue to focus on financial prudence in operations and land acquisitions.”

The company is currently acquiring land in Pune and evaluating possibilities of acquisition of land in Gurgaon, Hyderabad and Chennai. However, the company sees enough opportunities in Mumbai for realty development, Oberoi Realty Group CEO Saumil Daru said.

The firm has no plans to raise funds in near future as it has Rs 1,200-crore cash in hand as on March 2012, he said.

Commenting on future plans, Oberoi said the company plans to launch the Worli project (in Mumbai) this quarter. The property, spread over 20 lakh sq ft, will have residential and hotel components.

Cheating case against Ansal bros lodged

New Delhi: Realtors Ansal brothers, Sushil and Gopal, have been summoned by a Delhi court to respond to the allegation of cheating a US-based couple of nearly Rs 12 lakh.
Metropolitan Magistrate (MM) Ashok Kumar issued summonses to Ansal Properties and Infrastructure Ltd CMD Sushil Ansal and Ansal Buildwell Ltd’s MD Gopal Ansal on a complaint by a US-based woman Sunila Wadhawan.

In her complaint to the court, the expatriate Indian woman has alleged that the two brothers had “misappropriated” the commission amount of Rs 11.80 lakh to be paid to her husband.

Stocks More on Ansal Properties and Infrastructure

“I have perused the complaint and pre-summoning evidence led by the complainant. I hereby take cognisance against the accused persons… Accused persons be summoned for May 15,” said MM Kumar.

Besides Sushil and Gopal Ansal, the court has also issued summonses against Ansal Buildwell Ltd’s directors R L Gupta, Gaurav Mohan Puri and Subhash Verma, who were named as accused in the complaint. Ansal Properties and Infrastructure Ltd and Ansal Buildwell Ltd have been also named as accused in the case.

In the complaint filed through advocate Tarun Rana, Sunila Wadhawan said her husband Ashok Wadhawan was appointed as authorised agent on commission basis for marketing and selling properties of Ansal Properties and Industries Ltd, which was later divided into Ansal Properties and Infrastructure Ltd and Ansal Buildwell Ltd.

She said the Ansal brothers had assured her husband that payments would be made to him and in 1996, the firm launched a project by the name of Sushant Lok-III at Gurgaon in Haryana.

Wadhawan alleged her husband gave good business to the company in the project but his commission was not paid to him and he was “allured” to book a plot in the said project.

She said her husband was told that the commission amount would be “adjusted” towards his booking in the project.

The booking was made in the name of Sunila Wadhawan in 1996 and a cheque of Rs 2.5 lakh was also given by them for the property, the complainant alleged.

She alleged after they shifted to the USA, the firm officials began avoiding their calls regarding the booking and when they came to India, they were told that the sale deed of the plot was not executed in their name and “huge outstanding payments” were being shown towards the booking.

After they threatened to take action against the Ansals, they assured that the commission amount would be adjusted in their booking and a sale deed would be executed in their name.

But when the complainant and her husband returned to India in 2011, they came to know that their booking was cancelled.

“All the accused persons have conspired together to commit the aforesaid offences and as such are liable to be prosecuted under section 420 (cheating), 406 (criminal breach of trust), 506 (criminal intimidation) IPC as well as section 120-B/34 (criminal conspiracy/common intention) of the IPC i.e for the acts of cheating, criminal breach of trust, misappropriation of property and criminal intimidation,” the complaint said.

The complainant said they had neither received any notice of termination nor any correspondence in respect of the said booking.

“The accused have deliberately withheld and misappropriated the commission amount of Rs 11,80,345 of the complainant’s husband which as per the promise and assurances of Sushil Ansal and Gopal Ansal was to be adjusted towards the dues of

the said plot…,” the complaint said.

CCI verdict on realtors vs cement makers expected next week

The much awaited verdict of the Competition Commission of India (CCI) on real estate developers’ complaint against cartelisation among cement companies is expected next week.

Realtors have alleged that cement makers have increased prices by 50 per cent in the past six months and as much as 20 per cent after the Union Budget, blaming collusion for the supply problem. Cement companies say the complaint is “ridiculous”, as the prices are controlled by factors like demand and supply, railway freight rates and excise duty.

A 50-kg bag of cement used to cost Rs 170. It went up to Rs 250 before the Budget and costs Rs 300 now. Some developers are now including a cost escalation clause in their buyer-builder agreement due to uncertainty in the prices.

Cement companies defend that there was no cartelisation since cement is a commodity and all commodity prices move in tandem. Refuting the claims of developers cement makers say that cement accounts for just three to four per cent of the cost of the whole project. What about the remaining 97 per cent?”. They deny manufacturers are holding any stocks in godowns, and put the onus of escalating price over the increase in rail freight rates and general inflation.
The National Real Estate Development Council had in November moved CCI, alleging an unduly steep increase in cement prices. The installed capacity of large cement plants had increased from 223 million tonnes in 2009-10 to 234 mt in 2010-11. However, capacity utilisation in 2010-11 declined to 76 per cent from 83 per cent in 2009-10, it had said.

Niranjan Hiranandani to submit plans for low-cost homes

Mumbai: Real estate developer Niranjan Hiranandani will submit plans within two weeks to begin construction of affordable houses of 40 and 80sq m areas in his Powai township.

After the Supreme Court declined to dilute the February ruling of the Bombay high court or stay the order that banned him from undertaking any construction till he provides affordable housing, the developer was before the HC on Thursday.

His lawyers, senior counsel Aspi Chinoy, Dinyar Madon along with Parimal Shroff, showed maps to point out the open space position on which the developer would now build the houses.

His contention was that the court must take into account the 15% commercial construction permitted under DCR while calculating the area on which these tenements are to be constructed. He claimed he ought to build them on a reduced land size.

The bench headed by Chief Justice Mohit Shah asked the builder to first begin construction of the houses as directed. The court posted the matter to the third week of June for a progress report and did not consider the builder’s argument on commercial construction.

The HC, on February 22, passed its order which stopped the developer from going on with his lavish constructions. The judgment was on a PILfiled by activists who said that the developer had flouted a 1986 tripartite agreement with the state and MMRDA which allowed him to develop 230 acres in Powai and construct affordable houses and hand over partto the state.

The HC held that the developer flouted the agreement and the SC orally expressed its displeasure. “That place was meant for below middle class people. You built palaces for those who can afford Bentleys,” it said.

In 1986, the state passed an award determining the compensation at the rate of Re 1 per hectare for lands acquired from landholders. In return, the developer was to construct affordable flats.

The HC directed the Hiranandanis to construct 3,100 affordable houses (1,593 flats of 80 sq m and 1,511 flats of 40 sq m). Around 450 of these apartments, the court said, have to be offered to the state at a rate of Rs 135 per sq ft. Once these instructions have been complied with, the developer would have to take permission to embark on further construction.

Godrej Properties enters into an agreement for a new residential project in Kolkata

Godrej Properties has announced that it has entered into an agreement for developing approximately 1.36 acres of land in the posh area of Alipore on Burdwan Road, in Kolkata.

The project is envisioned as a luxury project with modern specifications and state-of-the-art amenities, and will be 14 storey tall.

Like most Godrej Properties projects, this project will be done on a joint venture basis. The project is expected to be launched in Jan 2013 and is estimated to be completed in 3 years.

The project enjoys the advantage of being strategically located with easy access by road, rail, metro and tram services. Alipore has excellent social and physical infrastructure in the form of schools, hospitals, restaurants and hotels.

Pirojsha Godrej, Managing Director, Godrej Properties said, “This will be our fourth project in Kolkata and fits in well with our strategy of adding quality residential projects in different parts of the country. We will endeavor to create Kolkata’s finest residential development.”

Lack of transparency in selection of Lavasa project: CAG

Mumbai: Observing that the project nods were given without environmental and Cabinet approvals, the Comptroller & Auditor General (CAG) has rapped the Maharashtra government for “total lack of transparency” in the selection of the Lavasa hill station project in Pune district.

“We have brought out total lack of transparency in selection of the project proponent. Granting of SPA( special planning authority) status to Lavasa Corporation Limited (LCL) without any control by the Government left scope for irregularities, perceived conflict of interest and violation of environmental laws,” it said.

Though the government was required to supervise the activities of LCL, they did not do so, CAG said in its report for the year ended March 31, 2011, which was today tabled by the deputy chief minister Ajit Pawar in the council.

In the absence of any public purpose being served, exemptions and concessions given to LCL were unwarranted and not in the public interest, it said.

“The state government at the highest level and its agencies at executive/implementation level went out of its way to facilitate a single project with scant regard for ensuring compliance to its own conditions laid down for the project and distributing the already ecologically fragile environment,” the report said.

The policy decision of the State government to develop hill station type areas in the state with private participation was not achieved and it appears that the regulations framed and amendments to existing laws and procedures made by the state government were propelled by private interests for setting up the Lavasa project alone, the report said.

The CAG has also made six recommendations to the government before giving the final nod to the hill station development project.

“The government may consider conducting a feasibility study to identify locations so that hill station development is uniform and balanced throughout Maharashtra, ensure transparency in selection of project proponents and review the policy of granting SPA status to private agencies,” it said.

It sought evolving a suitable mechanism for effective monitoring of compliance to various environmental laws, restricting grant of exemption and concessions which have revenue implications only in cases where public purpose is served and undertaking a social cost benefit analysis of the Lavasa Project.

The amendments which diluted well-established government procedures were made to ensure that LCL had a free hand to develop the project to serve its own commercial interests at the cost of public interest, the CAG report stated.

“The government had no knowledge of sub-lease of land by LCL to private agencies on long term basis. Requisite permissions of government/collector were not obtained by LCL for purchase of tribal land,” the report said.

Source: http://www.financialexpress.com/news/lack-of-transparency-in-selection-of-lavasa-project-cag/937972/0

Builders blame sluggish market for overshooting deadlines

In 2009, Belapur resident Chandra K Ravi booked a flat in Tata’s Shubh Grih, a budget housing project at Boisar, after the developer promised delivery in December 2011. Four months past the due date, Chandra discovered the project had been delayed for an uncertain period.

“I planned to shift from my current rented house to my own and get my childrenadmitted into a new school. But everything has gone haywire despite paying all my instalments on time,” said Chandra.

In 2008, when Kailash Patil booked a flat in Lodha’s Casa Universe project at Thane, the developer committed himself to a 2011 deadline. Today, the building is only half-done, and according to Patil, it will take at least two more years. “Because of the developer’s fault, I am having to pay both the EMI and rent,” Patil told DNA.

Chandra feels developers should be held responsible for such hold-ups. “If a buyer delaysthe instalment payment, developers are quick to charge 18-22% interest on the delayed payment. They too should be held responsible and asked to pay usrent for the delay they cause,” he said.

Confirming that many projects were late by six months to over three years, managing director Pankaj Kapoor of Liases Foras, a real-estate research firm, said 65% of the 4,091 projects launched over the last three years have been deferred. Kapoor revealed that instead of spending the initial booking amount on the building’s construction, most builders use it to buy chunks of land.

“As construction work progresses, the builder sells the remaining flats at a higher cost and again routes the money to different projects,” he added.

“While the glut in the real-estate market results in fewer sales, the tightening of lending rules by banks makes the requisite amount unavailable. So housing projects are slowed in a deliberate move by builders,” alleged Kapoor, adding that only after the market recovers enough to boost sales will the construction activity pick up.

When contacted, Anand Gupta, treasurer of Builder Association of India, admitted to the delay of projects by certain builders, but blamed it on a sluggish market.

“Chief Minister Prithviraj Chavan is equally responsible as his government did not approve proposals on time, thus causing delay in delivery.” Gupta added, “If the government compensates us, we will compensate buyers.”

Source: http://www.dnaindia.com/mumbai/report_builders-blame-sluggish-market-for-overshooting-deadlines_1674705

लक्जरी अपार्टमेंट से हिल स्टेशन हो रहे गुलजार

बाहर के निवासी भी खरीद सकेंगे फ्लैट

डीएलएफ और अंसल बिल्डवेल ने हिल स्टेशनों पर महंगे लक्जरी विला व अपार्टमेंट को हॉलीडे होम के अवतार के रूप में बेचने की शुरुआत की है।

एक खास बात यह भी है कि इन प्रोजेक्टों में हिमाचल प्रदेश से बाहर के निवासियों के लिए भी आवासीय प्रॉपर्टी खरीदने का प्रावधान है।

इसका मतलब यही है कि हिमाचल प्रदेश से बाहर के निवासी भी शिमला व मनाली जैसे मनोरम स्थानों पर लक्जरी फ्लैट खरीदने की अपनी मुराद पूरी कर सकेंगे।

कड़ी चुनौती
कीमतों के मामले में ये फ्लैट दे रहे हैं मुंबई और दिल्ली के पॉश इलाकों को टक्कर
एक बीएचके फ्लैट 40 से 50 लाख का, 3 बीएचके विला 4 करोड़ रुपये का
आकर्षण किस ओर
रियल एस्टेट कंपनियों का विशेष ध्यान शिमला, कुल्लू और मनाली पर
इन कंपनियों ने हिमाचल प्रदेश के स्थानीय डेवलपर्स से मिलाया है हाथ

महानगरों में सुस्ती के दौर से गुजर रही रियल एस्टेट कंपनियां महंगे लक्जरी अपार्टमेंट व विला बेचने के लिए अब शिमला, कुल्लू और मनाली जैसे हिल स्टेशनों की ओर चल पड़ी हैं। इसके लिए इन कंपनियों ने हिमाचल प्रदेश के स्थानीय डेवलपर्स से हाथ मिलाया है। कीमतों के मामले में ये मुंबई व दिल्ली के महंगे पॉश इलाकों को टक्कर दे रहे हैं। यहां फुल फर्निशड अपार्टमेंट और विला की कीमत 7,500 से 13,000 रुपये प्रति वर्ग फुट है।

हिल स्टेशन पर महंगे लक्जरी विला और अपार्टमेंट को हॉलीडे होम के अवतार के रूप में बेचने की शुरुआत डीएलएफ और अंसल बिल्डवेल ने की है। डीएलएफ शिमला एवं कसौली में और अंसल बिल्डवेल कुल्लू-मनाली में लक्जऱी अपार्टमेंट और विला बनाने जा रही हैं। शिमला में डीएलएफ ने 4 करोड़ रुपये की कीमत पर 3100 वर्गफुट कवर्ड एरिया में बना विला बेचा है।

शिमला में बेमलोई डेवलमेंट एंड इन्फ्रास्ट्रक्चर के साथ मिलकर समतारा लक्जऱी विला बना रही डीएलएफ के ईडी राहुल मेहता के मुताबिक शिमला में कंपनी के 24 लक्जऱी विला हाथों-हाथ बिक गए हैं। कंपनी ने यहां तकरीबन 13,000 रुपये प्रति वर्ग फुट की दर से विला बेचे हैं। 2700 से 3100 वर्गफुट कवर्ड एरिया वाले 4 बीएचके विला की कीमत 2.5 करोड़ से 4 करोड़ रुपये रखी गई है। कीमत के मामले में ये विला मुंबई व दिल्ली के किसी पॉश इलाके से कम नहीं हैं।

मेहता के मुताबिक शिमला के बाद कंपनी अब हिमाचल के ही कसौली हिल स्टेशन पर समवन नामक लक्जऱी विला का बड़ा प्रोजेक्ट लेकर आ रही है। शिमला जैसे हिल स्टेशन पर मुंबई व दिल्ली के पॉश इलाकों के बराबर कीमत वाले अपार्टमेंट और विला के सवाल पर मेहता का कहना है कि कंपनी ने शिमला में विला के कवर्ड एरिया के साथ काफी खुली जगह भी दी है। 1.6 एकड़ में केवल 24 विला बनाए जा रहे हैं।
अंसल बिल्डवेल कुल्लू में 190 वन,टू और थ्री बीएचके लक्जऱी अपार्टमेंट और विला बनाने जा रही है।

अंसल बिल्डवेल के मार्केटिंग हैड रंजीत कालिया ने बताया कि हिमाचल की स्थानीय कंपनी पेसिफिक कंस्ट्रक्शन के साथ मिलकर कुल्लू में मीडोज लक्जऱी अपार्टमेंट और विला बना रही अंसल बिल्डवेल के 850 से 1550 वर्ग फुट वाले अपार्टमेंट और विला की कीमतें 40 लाख से 1.15 करोड़ रुपये के बीच हंै। पेसिफिक कंस्ट्रक्शन के डायरेक्टर विकास मदान के मुताबिक उनकी कंपनी अंसल बिल्डवेल के साथ मिलकर कुल्लू के अलावा तीन और जगहों मनाली, रायसन एवं कोजा में लक्जरी हॉलीडे होम अपार्टमेंट बनाने जा रही है।

Source: http://business.bhaskar.com/article/luxury-apartments-are-from-the-hill-station-buzzing-3092521.html

Unfair trade: Unitech guilty, to pay Rs 6L

New Delhi: Leading real estate firm Unitech Ltd has been held guilty of resorting to “unfair trade practice” by a consumer forum here and directed to pay a customer Rs 6.6 lakh for making “illegal demands” from him after he booked a flat with it and paid the booking amount.
Mutual Funds Check for top funds

The District Consumer Disputes Redressal Forum, in its order, observed that the firm and its agent made “unjustified” demands from the customer and also threatened to forfeit his deposited money.

“The action of the Unitech Ltd and its agent in raising the illegal demands from time to time and then refusing to refund the booking amount is clearly unjustified and amounts to unfair trade practice by them.

“Accordingly we direct the firm and its agents jointly and severally to refund to the complainant the sum of Rs 5.5 lakhs along with a compensation of Rs 1,00,000 for physical and mental agony suffered and Rs 10,000 as the litigation cost,” the forum said.

The bench presided by Rakesh Kapoor passed the order on a plea by Rohini resident Amrit Lal Chawla who said he had booked a flat for Rs 5.5 lakh in a residential project, Unitech Verve at Greater Noida, launched by the firm.

Chawla alleged the company sent letters arbitrarily increasing the rate of the flat from the initially agreed upon rate under the contract and when he cancelled the booking and asked for refund of his deposited amount from the company, it threatened to forfeit the same.

The forum observed that Unitech Ltd “failed to show as to how they had raised demands at higher rate than what was agreed upon” as it chose not to contest the complaint despite a notice.

Source: http://www.financialexpress.com/news/unfair-trade-unitech-guilty-to-pay-rs-6l/934460/0