New’s Maker’s 2016′ The Tribune’ FAROOK MAHMOOD-Biggest India Foot Print

Delhi:December 31,2016

Our Chairman Mr.Farook Mahmood have been featured Today in “The Tribune” Delhi edition as CMD Silverline Realty in Global Laurels 2016 along with Donald Trump, KP Singh of DLF ,Subrata Roy of Sahara group, Robert Vadra , Niranjan Hiranandani, Hema Malini and other prominent personalities controversial..

Global Laurels  Farook Mahmood Chairman & MD, Silverline Realty

Farook Mahmood, Chairman & Managing Director of Bengaluru-based real estate brokerage firm,  Silverline Realty got the rare distinction of getting elected as the President (for 2017-18) of FIABCI, the most representative organisation of the real estate industry in the world, having special consultative status with Economic & Social Council (ECOSOC) of the United Nations.A graduate in real estate management, Farook had earlier held prestigious position of chairman of ICREA-International Consortium of Real Estate Associations. He is currently the vice-chairman of the National Association of Realtors (NAR), India, having 3000 members from 65 countries, representing all professions of real estate. With the election of Farook as    President- elect, FIABCI, the spotlight will turn on India that is  undergoing several landmark structural reforms like Real Estate Regulation Act (RERA).

Donald Trump, US President elect and founder, Trump Organisation :

The election of property tycoon, Donald Trump as the new President of America, may well herald the beginning of a new era of larger footprint of Trump brand on Indian real estate, especially after the group’s recent tie-up with Gurgaon-based developer, Ireo for an office complex and with M3M for a residential project. Currently, the upscale Trump brand has its footprint in Mumbai, Pune & Delhi through its India partner, Kaplesh Mehta of Tribeca. Trump has five ongoing projects in India, with a gross development value of about $ 1 billion. Mumbai-based Lodha Group is developing an uber luxe 75- storey residential project-Trump Tower. Pune-based Panchshil Realty’s Trump Tower is also under development in Pune. According to Mehta, Trump Organisation, founded by Donald Trump, is looking to expand in India by launching few more projects in 2017. This is endorsed by Donald Trump Jr, Executive Vice President of the company, who said that the Trump Organisation was bullish on India for building a pan- India footprint for Trump– branded residential and office projects.

Land(ing) in Trouble  

Robert Vadra

There seemed to be no  end to the troubles of Robert Vadra, the  businessman son-in-law of Sonia Gandhi, in the wake of a report submitted by one- man Justice SN Dhingra Commission set up by Haryana government to probe controversial land deals in Gurgaon,  involving certain companies including Sky Light Hospitality, owned by Vadra.Vadra has been accused of transferring his license for the development of colonies, group housing societies and commercial complexes to DLF,  in violation of the law.  Justice Dhingra Commission report found irregularities in the land licenses allotted to various companies in Gurgaon by the erstwhile Congress government. Earlier, a report by Comptroller & Auditor General (CAG) had found irregularities in the land licenses granted to Vadra’s company.Denying any irregularities, Vadra had called it political witch hunt. In a related development, Rajasthan High Court asked the representatives of Skylight Hospitality, to appear for interrogation before the Enforcement Directorate in connection with land transactions in Bikaner, Rajasthan. The ED had earlier issued the summons under the provisions of Money Laundering Act over alleged purchase of 275 bigha land in Bikaner. Vadra had however denied any irregularities.

Reprieve At lastSubrata Roy, Group Chief, Sahara India

 The year brought a much awaited relief to Sahara Group chief, Subrata Roy, who was finally released on parole by the Supreme Court in May, after spending two years in jail.Roy, along with two group directors, was in judicial custody since March 4, 2014, for failing to comply with apex court’s orders in 2012, relating to refund of over Rs 24,000 crore, raised from 3 crore bond investors by two group companies — Sahara India Real Estate Corporation & Sahara Housing Invest Corporation. In 2014, the apex court had set a bail  of Rs 5,000 crore in cash and an equal amount as bank guarantee. From May onwards, Roy’s parole has been extended four times. According to SEBI’s submission before Supreme Court, Sahara had remitted a total of Rs 10,780.75 crore and the company still needed to refund a total of Rs 47,087.7 crore including interest @ 15 per cent till October 17, 2016.

 

Home Travails : Rajyavardhan Rathore, Union Minister of State for Information & Broadcasting

The year 2016 was marked as a year of face- off between real estate developers and home buyers, with thousands of harried home buyers left in the lurch, due to long delays in delivery of homes. Among these hordes of faceless aggrieved home buyers, was Union Minister of State for Information & Broadcasting, Rajyavardhan Rathore, who like many others, had to seek legal recourse for justice.Rathore had booked an apartment in  Gurgaon in 2006 and paid Rs 70 lakh for it. The builder’s default to deliver the project on time, made National Consumer Disputes Redressal Commission this year, to direct  the builder to refund the principal amount with interest and compensation to Rathore. Later, the Supreme Court  directed the builder to hand over the flat to the minister in two days, noting that the extent of compensation to be paid by developer to Rathore, would be decided later. However, the dispute did not end even after the allotment of the flat as the minister complained to apex court that the flat was not habitable as it lacked basic facilities including parking space. Thereafter, a  fact finding committee appointed by the Supreme Court, found many deficiencies in the allotted flat. Finally, SC settled the case telling real estate company to remove deficiencies in the allotted flat while at the same time telling the minister to amicably sort out the issue with the real estate developer.

Forbes Honours:K.P Singh, Chairman, DLF

The chairman of India’s largest real estate company, DLF, hogged the limelight as the biggest gainer in the 2016 Forbes India Rich list. According to the coveted list, Singh gained highest 86.4 per cent, ahead of business tycoon, Ajay Piramal (82.6 per cent). He recorded $4.8 billion in terms of per centage rise in wealth- up from $2.6 billion in 2015.The remarkable rise in realty czar’s fortunes is attributed to 26.8 per cent jump in DLF stock since September 2015, after the company board cleared a proposal of promoters selling 40 per cent of their stake in commercial property development arm- DLF Cyber Developers, to institutional investors. Singh has moved to 22nd ranking in Forbes 2016 rich list, scaling 12 spots from 34th ranking last year. The real estate tycoon’s gain in wealth assumes significance as the top 20 billionaires in the Forbes India Rich list have seen their wealth (as a per centage of total wealth of top 100 billionaires) reduce steadily from 70 per cent in 2009 to 52 per cent in 2016.

Scam- taintedNirmal Singh Bhangoo MD, Pearl Group: Scam- tainted

The year saw the Chairman & Managing Director  of Pearl Group, with interests in real estate and  media, Nirmal Singh Bhangoo  getting arrested by the CBI in connection with Rs 45, 000 crore ponzi scam case in which close to 5.5 crore investors were duped. The CBI found that Pearl group companies were raising investments by promising hefty returns and issuing bogus land allotment letters. The CBI had registered case against Bhangu and others in 2014 on the orders of Supreme Court. According to CBI, Bhangoo owns 68 offices and 553 acres in Delhi and the investigating agency has identified his properties worth Rs 5,000 crore across the country.

Land Row :Hema Malini Actor politician

Actor-politician, Hema Malini, landed herself in a raging controversy over allotment of land for her dance academy in Mumbai’s suburban upmarket Andheri. According to information procured by an RTI activist,  Hema was allotted a prime plot of land worth several crores for a paltry sum by Maharashtra government. Later, a PIL was filed in Mumbai High Court, seeking direction to file a case of cheating and forgery. The state government took a stand that the land allotment was in line with the old policy of charging low ready reckoner rates of February 1, 1976, but it was forced to cancel the old policy and come up with a new policy based on current rates. Hema Malini, however, maintained  that there was no question of land grab as she was yet to get possession of the land in question and that she would pay according to law, when she gets the land.

Illicit Wealth : Mahesh Shah Ahmedabad- based realtor

The  government’s demonetisation  drive to stamp out black money , dealt a severe blow to real estate sector, already facing slow down. The currency crackdown against black money witnessed bizarre headlines when an Ahmedabad- based realtor, Mahesh Shah disclosed unaccounted earnings of Rs 13,260 crore under the Centre’s Income Declaration Scheme (IDS).What was really bizarre about this billionaire realtor, was that for  the past 2-3 years, he had reportedly shown his annual income as Rs 2-3 lakh. Shah, however, defaulted on payment of first installment of over Rs 1000 crore by November 30, as part of the amnesty scheme.

Caught in litigation : Sanjay Chandra MD , Unitech group

It was a year of court cases and sentences for the Unitech group as it faltered in handing over possessions to buyers in its different projects. In January a Delhi court had sent Unitech Ltd Chairman Ramesh Chandra, MDs Sanjay (in pic) & Ajay Chandra & Director Minoti Bahri to 14-day judicial custody in alleged cheating cases filed by two investors. And the troubles continued for the group as in July the Supreme Court ordered Unitech to refund investors’ money due to the delay in the housing project in Noida. The builder however, responded by saying that it didn’t have the money to refund buyers.

$1 Billion Sell-off Bonanza :Niranjan & Surendra Hiranandani Hiranandani Group

For the leading real estate duo of Niranjan & Surendra Hiranandani, the year 2016 brought in an exceptional windfall, in the form of $1 billion (Rs 6,700 crore) sell-off of their jointly owned commercial assets in the upmarket Powai in Mumbai. The 4.5 msf of office and retail space monetised by Hiranandani brothers, by way of sale to Canadian private equity firm, Brookfield Asset Management, is a part of Hiranandani Business Park & Hiranandani Gardens in Powai.Niranjan Hiranandani’s  real estate firm, Hiranandani Developers, owns 2000 acres and is constructing 3000 apartments in Mumbai suburbs, besides developing 5msf of office space in the country. He plans to deploy a part of his $500 million share from asset sale, for setting up a non-profit affordable housing company, with its operations in Mumbai & Chennai.Surendra Hiranandani, on the other hand , plans to reinvest the money in his company — House of Hiranandani, that is engaged in the development of luxury homes.

 

Courtesy By: New’s Maker’s  from 2016 -The Tribune

The Prime Minister of United Kingdom Theresa May Visited our Office Building Barton Center, M.G.Road Mr.ZAHED MAHMOOD,

Bengaluru:November 8,2016

The Prime Minister of United Kingdom Theresa May Visited our Office Building Barton Center on M.G.Road in the Picture Mr.ZAHED MAHMOOD, along with Our Co-Owners Bharath, Ashish Mehta and Rajesh Rajaram at the 13th Floor addressing the International Press Conference .The View of our State Parliement (Vidhana Soudha) is unbeatable from here this is her Maiden visit to the City of Bengaluru on November-8th 2016.

 

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Real estate: what lies ahead?

Bengaluru: Friday,30 December, 2016

Pratik K Mehta & Vinay K Mehta take a look at the changes the realty sector underwent this year and what 2017 entails for home buyers in the City….

The year 2016 began with mixed reactions from the realty sector towards the Real Estate Regulation and Development Act (RERA) followed by the Goods and Service Tax (GST) Bill seeing light of the day. GST aims at elimination of dual taxations and at creating a hassle-free home buying experience. The demonetisation of Rs 500 and Rs 1000 notes alone created chaos not just in the realty sector, but across all industries. The secondary real estate market suffered a severe blow along with markets driven by business clusters that heavily indulged in cash transactions.

The year resonated with customers’ voices across the country, as a number of legal cases were filed and justice served. This was a good sign as errant developers across country were penalised for misleading home buyers. This led to an increase in home buyers’ confidence and trust in the system, which is of paramount importance for the sector’s growth. As a result, the year has witnessed developers shifting their focus from project launches to project deliveries and adhering to timelines.

On absolute growth parameters, the year witnessed subdued sales numbers. There were a handful of new project launches and of the ones launched, affordable homes were the clear focus for developers. While few launched new projects, many redesigned existing ones. The year also witnessed a large number of innovative offers designed to attract home buyers. In all, it was an action-packed year from the regulatory point of view. Here is our outlook for the possibilities in 2017

End user driven markets to flourish

Demonetisation may have created a big lull, but end user driven markets like Bengaluru, Pune, Hyderabad, Chennai etc. did not feel too much of a pinch. These markets will continue their steady growth as people will realise that cashless markets would not see much of a dip in prices. Hence, the demand will pick up significantly from March 2017 onwards.

Softening of loan interest rates

With the over capitalisation of banks, they will be forced to reduce lending rates for home loans which could be hovering at around 7%, and that would be a great impetus for the housing sector.

Growth of affordable housing

It is expected that there could be further subsidies/incentives for affordable, sub-Rs 50 lakh homes owing to affordable housing schemes. These could include regulated home loan interest rates, waiver of certain taxes etc.

This will give a big boost to the affordable housing sector which is seeing a huge shortfall, and the demand for it is unending. Developers would continue their focus on this category and any addition to inventory will be across this segment only.

Increase in property prices

Against all odds, the property market will experience an increase in prices due to various factors. Diminishing inventory (as noted by a 51% drop in new launches in 2016) will result in demand-supply imbalance, thereby increasing cost. Subdued sales over the last two years did not allow any significant price movement, but rising input costs of construction and interest costs will put pressure on the developers.

Hence, an increase in prices in 2017 is inevitable. The rise could be up to 20% as well, especially in markets that are primarily end user driven, in cashless economies and with organised developers.

Marked improvement in urban infrastructure

It is estimated that 40% of country’s population will be living in urban areas by 2030. Thus, there is a need for improved urban infrastructure, which is being addressed by the government. Programmes such as Housing for all by 2022 Scheme, Smart Cities Mission, Swachh Bharat Mission etc. aim at creating more urban centres which are at par with other global cities. Thus, we shall witness the rise of more urban clusters and better infrastructure.

Return of home buyer confidence

RERA is loaded with pro-home buyer clauses which will tremendously boost their confidence. And with GST, ease of doing business and excess taxes would be in check, thereby easing costs. As mentioned earlier, in 2016, a number of legal cases were ruled in favour of the home buyer, which again reinstates their faith in the system. With these, market sentiments are bound to improve.

Project delays

Whether we like it or not, the year will witness project delays. Demonetisation has caused loss of significant working hours as reduced liquidity forced many construction workers out of their jobs. Established players will manage to meet their deadlines despite this setback, but for small-time developers, it will be an uphill task.

Hence, it can be confidently said that 2017 will be an active and fruitful year for the sector. The long lull will finally start breaking by March-April and sales will pick up momentum. Also, by then, impact of all major actions of 2016 will be felt and home buyers will be convinced of stability in prices and offerings in the market.

Advice to home buyer

If you are a home buyer in an end user driven market such as Bengaluru, Pune, Hyderabad and Chennai, perhaps, it is an opportune time for you to explore your options, as the market will have lucrative offers, and you can bargain a good deal. In these markets, the wait-and-watch stance might prove dearer.

But, remember to choose your developer wisely. Developers with healthy track record, systematic and organised governance (look for their ISO certifications that indicate their governance standards), good construction quality and healthy construction pace should be preferred.

The year 2016 laid foundation stones for a strong, transparent and ethical industry. Introduction of RERA, GST and demonetisation – all have paved way for metamorphosis of the sector as this would lead to eradication of unfair players, consolidation and strengthening of the sector. In medium to long term, the sector is set to be absolutely transparent and regain trust of its most important stakeholders – home buyers.

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Courtesy by:Deccan Herald

 

Cut off dates to be extended under Bengaluru’s Akrama Sakrama scheme

Bengaluru:December 27, 2016,

On Monday, KJ George, city development minister met the urban development department and BBMP officials to discuss the key issues related to implementation of the scheme.

BBMP is mulling to extend the cut-off date for regularisation of properties under the Akrama Sakrama scheme. The last cut off date was October 19, 2013 but now it is going to be extended to a recent date to give opportunity to more violators to regularise their properties and this will also fill the coffers for BBMP.

On Monday, KJ George, city development minister met the urban development department and BBMP officials to discuss the key issues related to implementation of the scheme. However, Chief Minister Siddaramaiah is going to a take a final call on the nitty-gritties in a meeting to be scheduled soon with cabinet ministers and fix timelines.

N Manjunath Prasad, BBMP commissioner said that three problematic issues were discussed in the meeting on how to implement the scheme. “First, the last cut-off date was October 2013. Then should we levy the fine for regularisation based on the guidance value as on 2013 or if we regularise them now, the fine will be calculated based on current guidance values of land. Also there would be many such buildings that have been built after the cut-off date that have violated building bye laws, how to regularize them? If we regularise these buildings that have come up new and violated laws, then should the fine be calculated based on current guidance value?”

The government is also likely to give three months to citizens to apply seeking regularisation and seek what type of violations have occurred. “But if the number of applications are not as high as we expect, we want authority to disconnect power and water to buildings that are illegal. But for this, we have to do a thorough survey. I suggested to have an empanelled team of architects to check the violation of building bye laws of building ward wise and put it out on public domain,” Prasad said.

A third issue that citizens might face is that of regularizing buildings on agricultural land that have not been converted and this requires conversion from deputy commissioner’s office. Officials said that instead of having citizens run from pillar to post, they can submit all the relevant applications to BBMP alone. Palike officials will do the rest but it might take six months or so.

Courtesy by: EconomicTimes Realty.

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