Thursday, 11 August 2011
HDIL to set up Kochi IT Park
Kochi, India, September 13, 2007 - Mumbai-based real estate developer Housing Development and Infrastructure Ltd (HDIL) is to set up an IT park at Kalamassery, near Kochi. HDIL Cybercity will come up on a 70-acre plot with a total built-up area of 7.9 million sq ft of which 5.4 million sq ft will be used for IT space and the rest for hospitality, retail and entertainment.
Real estate: Land acquisition on shaky grounds
Rakesh Jain booked a flat in one of the projects in Noida Extension. He paid the developer all his hardearned money, did his due diligence through his lawyer and also obtained a bank loan. However, the controversy over land acquisition, made his plans go haywire . Following the Supreme Court verdict , asking developers to pay back the buyers' money, his developer asked him to shift into an alternative project at Raj Nagar Extension, Ghaziabad. Rakesh's plight is not a city-specific phenomenon. It has happened with many property seekers in Mumbai, as well, in the past. Realty experts believe that Mumbai's land deals are the most sensitive ones and demand a lot more due diligence. Moreover, land deals in Mumbai also have a political overtone in many cases, which a common man may not be aware of. Jain, who is a journalist with a Noida-based television channel, is wondering whether he can cope with such a long commute. Even asking for a refund has its own pitfalls. Developers have bought time by opting for a legal opinion on the quantum of interest rate to offer, vis-a-vis refunds, since the Supreme Court has only asked for appropriate interest to be given. Moreover, even if Jain gets a refund , finding a house in the Delhi-NCR region in the given budget of Rs 25 lakhs, would be next to impossible. Today he has a basic question - where has he gone wrong?
Jain wonders whether there was any lapse on his part and feels that developers should also have done their own due diligence , to ensure that thousands of home buyers did not get into such a trap. Developers have termed that Noida Extension fiasco as 'unprecedented' but agree that such fracas can happen anywhere in the country, if policy guidelines are not clear.
The apex body of developers, CREDAI, in its local chapter, has now hired a law firm. There is a general feeling among the developers that in future, they need legal due diligence in all land deals, including government-purchased land. However, Lalit Kumar Jain, national president, CREDAI and CMD of Kumar Urban Development, points out that the CREDAI cannot involve itself in such issues, where the government is primarily responsible . In such cases, where developers have bought land from government, they are the victims. "Developers usually undertake stringent due diligence, with respect to land acquisition. However, title investigation in India is a difficult task, since many laws affect the transactions and details of which may not be available. The government should undertake land acquisition, only for public purposes - for amenities and infrastructure for public good. The government should refrain from acquiring land for speculative purposes," he says.
Kumar accepts that there is an anomaly , in terms of the compensation for land acquisition done by private players, on one hand and by government authorities, on the other hand. It will be good for all stakeholders if this anomaly is resolved soon. Land acquisition for setting up of industries is another pressing issue, which often witnesses stiff resistance and boils into a political issue. The affected developers at the Noida Extension assert that if a regulatory or a particular authority body is responsible for the allotment of land to builders, then the builders have to trust and go by the verdict of the authority. This is a body set up by the government, to promote the development of the city, to provide information about its various development schemes, projects, etc.
RK Arora, CMD of Supertech, one of the worst affected developers in the land acquisition controversy at Noida Extension explains that all the land acquisitions are done by the Greater Noida Authority. "Developers are allotted land on the basis of bidding, based on the technical and financial qualification stated in the bidding document issued by Greater Noida Authority. The builder has the responsibility to develop the land allotted to them by the authority, as per the approved plan. Land acquisition, from the farmers is a function of the development authority only," he elaborates. Arora asserts there should be a mechanism to bail out developers, if the land purchased by the government gets into trouble. Such a mechanism will ensure that customers get a quick solution to their problems and their interests will be safeguarded. At the same time, builders' concerns should also be addressed, he insists. news reported by ecomonic times
Jain wonders whether there was any lapse on his part and feels that developers should also have done their own due diligence , to ensure that thousands of home buyers did not get into such a trap. Developers have termed that Noida Extension fiasco as 'unprecedented' but agree that such fracas can happen anywhere in the country, if policy guidelines are not clear.
The apex body of developers, CREDAI, in its local chapter, has now hired a law firm. There is a general feeling among the developers that in future, they need legal due diligence in all land deals, including government-purchased land. However, Lalit Kumar Jain, national president, CREDAI and CMD of Kumar Urban Development, points out that the CREDAI cannot involve itself in such issues, where the government is primarily responsible . In such cases, where developers have bought land from government, they are the victims. "Developers usually undertake stringent due diligence, with respect to land acquisition. However, title investigation in India is a difficult task, since many laws affect the transactions and details of which may not be available. The government should undertake land acquisition, only for public purposes - for amenities and infrastructure for public good. The government should refrain from acquiring land for speculative purposes," he says.
Kumar accepts that there is an anomaly , in terms of the compensation for land acquisition done by private players, on one hand and by government authorities, on the other hand. It will be good for all stakeholders if this anomaly is resolved soon. Land acquisition for setting up of industries is another pressing issue, which often witnesses stiff resistance and boils into a political issue. The affected developers at the Noida Extension assert that if a regulatory or a particular authority body is responsible for the allotment of land to builders, then the builders have to trust and go by the verdict of the authority. This is a body set up by the government, to promote the development of the city, to provide information about its various development schemes, projects, etc.
RK Arora, CMD of Supertech, one of the worst affected developers in the land acquisition controversy at Noida Extension explains that all the land acquisitions are done by the Greater Noida Authority. "Developers are allotted land on the basis of bidding, based on the technical and financial qualification stated in the bidding document issued by Greater Noida Authority. The builder has the responsibility to develop the land allotted to them by the authority, as per the approved plan. Land acquisition, from the farmers is a function of the development authority only," he elaborates. Arora asserts there should be a mechanism to bail out developers, if the land purchased by the government gets into trouble. Such a mechanism will ensure that customers get a quick solution to their problems and their interests will be safeguarded. At the same time, builders' concerns should also be addressed, he insists. news reported by ecomonic times
Mumbai real estate registration hit a new 24-month low
Mumbai, the largest residential market in the country, has hit a new 24-month low as far as sale registrations are concerned. For the month of June, the city clocked a 27% dip in sales registrations, which is close to the levels that were last seen during June 2009. reported by economic times
Leela Group is set to sell its Leela Resorts Kovalam for Rs500cr
The Leela Group is set to sell its marquee property in Kovalam, a famous beach on the outskirts of the capital of Kerala, as part of an ongoing exercise to ease its debt burden. The property, Leela Resorts Kovalam, is being sold for 500 crore to NRI Ravi Pillai, said Leela chairman CP Krishnan Nair. The deal, however, will not result in Leela exiting the property completely. It will enter into a management contract with Pillai to manage the property for 30 years, reports Economic Times.
Pillai confirmed the deal with the Leela Group will be finalised soon but declined to provide details. The trigger for the sale of the property, which was originally developed by state-run ITDC and has a commanding view of Arabian Sea, was the need to reduce debt. Leela Venture, a listed company, had accumulated debt of 3,830 crore at the end of FY11 owing to capital expenditure of over 4,000 crore, which is currently underway. This includes 3,200 crore on new hotels in Udaipur and Delhi. The company also expects to spend 1,200 crore on building a hotel in Chennai, which is scheduled to open in December.
The company has been looking to sell properties across the country to cut its debt which, at close to 4,000 crore, is more than double its market cap of 1,782 crore at Wednesday’s closing price. In March, the company announced plans to sell an IT park in Chennai for 950 crore. Hotel Leela Ventures’ debt is the highest compared to peers such as Indian Hotels Company, part of the Tata Group, which had debt of 2,500 crore as on March 31, 2011
Pillai confirmed the deal with the Leela Group will be finalised soon but declined to provide details. The trigger for the sale of the property, which was originally developed by state-run ITDC and has a commanding view of Arabian Sea, was the need to reduce debt. Leela Venture, a listed company, had accumulated debt of 3,830 crore at the end of FY11 owing to capital expenditure of over 4,000 crore, which is currently underway. This includes 3,200 crore on new hotels in Udaipur and Delhi. The company also expects to spend 1,200 crore on building a hotel in Chennai, which is scheduled to open in December.
The company has been looking to sell properties across the country to cut its debt which, at close to 4,000 crore, is more than double its market cap of 1,782 crore at Wednesday’s closing price. In March, the company announced plans to sell an IT park in Chennai for 950 crore. Hotel Leela Ventures’ debt is the highest compared to peers such as Indian Hotels Company, part of the Tata Group, which had debt of 2,500 crore as on March 31, 2011
SEZ level cleared for $350 million Kochi Smart City
Kochi, Kerala, June 20, 2007 - The Centre has granted SEZ clearance for the $350 million Kochi Smart City promoted by the Kerala Government and Dubai based TECOM Investment. The project aims to develop 88 lakh sq.ft of built-up space and supporting infrastructure for IT and ITES firms and can generate 90,000 jobs over the next 10 years. The Kerala Government will have an initial stake of 16% that will increase to 26% after 5 years.
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