Ravi Sinha: One issue which Sunil raised on funding mechanism that it was a strategic mistake by certain developers to raise money through IPOs. I would like to rake this issue again and seek the panel’s view.
The demand fundamentals of the India story are now focused around all cities that have sufficient economic activity, be it industrial, service sector-driven or incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, the key cities of Ahmedabad, Surat and Vadodara come readily to mind.
Hyderabad Police have arrested six persons, including director of a real estate firm, in Ongole town of Andhra Pradesh on charge of cheating people under multi-level marketing money circulation schemes suspected to be involving several crores.
Real estate companies reeling under the bad debt and falling sales graph are expected to record yet another bearish quarterly results with most of the listed companies’ shares already in the red. Listed real estate companies represented by the Realty Index on BSE have witnessed a fall of 1.7 per cent over the past one month.
Today we are looking at a situation where real estate is isolated by the Government as an industry it does not trust. It could be because it is too segregated, too micro for a Government to take note about 5000 developers which are organized under CREDAI.
Land is scarce and the only way in urbanisation is to go up where more FSI/FAR would mean increasing the supply and bringing the price down, goes an old philosophy of the Indian developers. In reality, nearly all the high rises across the Indian cities are high-end luxury projects and seem to fulfil the aspirational needs of the Richie Rich.
The much talked about and widely anticipated Real Estate Regulation and Development Bill may not get cleared in the current Budget Session of Parliament, since the government is getting cold in the wake of the Union Government running into opposition from the states on a host of issues, including the proposed National Counter Terrorism Centre and Lokpal Bill.
Pranay Vakil: The problem is when having sanctioned the loan, there is no fear of revoking it. You can change your mind because these funds are kind of committed. When engage Shapoorji Pallonji or L&T to execute a project, you enter into a contract and you say that this is how we are going to make payments. Suddenly, if you are to switch off the tap, it is going to cause a lot of embarrassment to the developer.
American property mogul Donald Trump targets India above other emerging economies, his son and business partner said, as the flamboyant tycoon looks to crack a notoriously tough real estate industry with his brand of luxury homes and hotels.
While the government is trying to regulate the developers with provisions of penalty and up to imprisonment, the developers in Maharashtra have decided expose the policy paralysis through RTI route.