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Many housing society defaulters in Mumbai rush to clear dues with discounts

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Till November 14, when RBI and the government made it clear that cooperative banks could not accept deposits, members of hundreds of housing societies paid dues in cash, and maintenance of almost a year or two in advance to avail of discounts.MUMBAI: Soon after the demonetisation announcement, Ameya housing society in Borivli witnessed an overwhelming response to a scheme to get a 2% discount on payment of maintenance bills in advance. Many residential and commercial defaulters, who had dues of the last few months pending, cleared arrears in one go. The scene at Ajantha housing society in Malad and some others in Ghatkopar and Bandra was no different.

Till November 14, when Reserve Bank of India and the government made it clear that cooperative banks could not accept deposits, members of hundreds of housing societies paid dues in cash, and maintenance of almost a year or two in advance to avail of discounts. The announcement came after RBI doubted that many would park black money in cooperative banks, credit and housing societies to avoid income-tax action.

“Many housing societies may see an increase in balance-sheets. At many societies, members who had deliberately not paid dues for years in protest against policies of committee members, suddenly made payments. Soon after the government’s announcement to not accept deposits in cooperative banks, we advised many societies to avoid cash transactions. But before that, many reportedly paid dues and advances in cash,” said Surendra More, chairman, Mumbai Suburban District Housing Federation, which has hundreds of housing societies as members.

At some societies, like Kanyakumari in Andheri, residential members offered to pay maintenance for a year in advance but it was turned down, citing objections from banks. A member of Avighna society in Bandra said many societies, including theirs, accepted cheques and told members to deposit cash in banks directly against their individual accounts to avoid audit queries.

Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association, which has hundreds of cooperative bodies as members, said soon after the announcement, many societies came up with schemes of advance payment of maintenance and later deposited cash and cheques in banks. “When RBI instructed cooperative banks not to accept deposits, as almost all coop societies have accounts with cooperative banks, we directed them to avoid cash payments and accept only cheques to avoid audit objections,” said Prabhu, pointing out that even the number of societies that completed audits has gone up remarkably due to growing awareness. But he lamented the fact that even today, 50% housing societies still do not hold elections, which are mandatory, and can be held only if the society has audited its accounts and submitted audited balance-sheets to the cooperative department.

A senior cooperative department official said RBI and the government did not give enough powers to cooperative banks and credit societies to accept deposits, affecting their turnovers and economy. “In many areas, cooperative banks work as agents for nationalized banks for collection and disbursement. Initially, we received cash deposits. We could have got a lot of business had RBI and the government empowered us to go ahead with deposits and exchanges. The department had also requested that coop banks accept deposits and later allow income-tax and other investigating agencies to probe individual account-holders’ transactions. But it did not happen,” he added, pointing out that many coop banks had lost business.

Prof Deepak Dagali of Kanyakumari housing society said some members offered to pay cash in advance but after RBI’s directive, cooperative banks refused to accept deposits. In societies in Bandra, Navi Mumbai and Thane, many cash payments were made to pay dues besides advances, but after RBI’s diktat, they forced residential and commercial members to pay only by cheque.

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Indiabulls Real Estate Acquires A Commercial Building With Leasable Area Of 2.5 Lakh Sq Ft. In Gurgaon

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Indiabulls Real Estate

Indiabulls Real Estate has earned a distinct reputation for building projects that turn spaces into inspiring places, since its inception. Indiabulls Real Estate went on to expand its projects portfolio, with its prime focus on construction and development of residential, commercial & SEZ projects, across major Indian Metro cities. Today Indiabulls Real Estate is ranked amongst the top Real Estate companies with a total Gross Development value of INR 32,189 crores and net worth of INR 5,480 crores as of 2017.

Indiabulls Real Estate has commercial development with a leasable area of 3.15 million sq.ft. under construction. Further, it has a land bank of 1,046 acres and also possesses 2,588 acres of SEZ land at Nasik, Maharashtra. In 2014, the company acquired the prime property, 22 Hanover Square in Central London for Rs.1630 Cr. The group has also been conferred the status of a Business Super brand by the brand council Superbrands, India. Indiabulls Real Estate is known for its successful delivering of superior products, services to its customers, partners and shareholders.

Indiabulls Real Estate is planning to acquire a large commercial building with a leasable area of 2.5 lakh sq ft in Gurgaon.

To acquire this large area of prime and newly constructed commercial building, Indiabulls Real Estate’s wholly-owned subsidiary has entered into a definitive and a binding agreement. A BSE filing by the Indiabulls reveals that, the deal has an expectancy period of four months, mainly after receiving the Occupation Certificate of the building. Although the name of the seller and deal value was not disclosed.

With many leading multi-nationals operating in the vicinity, makes it a developed prime commercial location. Equipped with an additional leasable area, the company expects to enhance its annuity revenue to Rs 1,450 crore in FY 20-21 from the rental properties portfolio of Indiabulls Real Estate.

With its expansion spree, Indiabulls Real Estate, is counting on the revival in the real estate market in Gurgaon for making its project a success. The commercial realty market is witnessing a strong demand in Gurgaon. So Indiabulls Real Estate is looking forward to set up a state of the art business park in Gurgaon, which would be able to draw reputed corporates and MNCs. As some big-ticket commercial space rentals and deals are expected to be finalized in this space.

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Adani’s Bandra-Kurla Complex Project To Be Taken Over By Shapoorji Arm For Rs 2,000 Crore

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Adani’s Bandra-Kurla Complex Project To Be Taken Over By Shapoorji Arm

Shapoorji Pallonji Investment Advisors which is an investment arm of conglomerate Shapoorji Pallonji Group is set to acquire a commercial project Inspire BKC from Adani Realty in a nearly Rs. 2,000-crore transaction. The project is located in Mumbai’s business district Bandra-Kurla Complex (BKC), informed two persons familiar with the development.

Shapoorji Pallonji Investment Advisors has emerged as the frontrunner from a total seven shortlisted interested entities including US-based private equity major Blackstone Group and an alliance between Qatar Investment Advisors (QIA) and Bengaluru based realty developer RMZ.  For this over 8 lakh sq ft project Shapoorji Pallonji Investment Advisors has already completed the due diligence process.

One of the people mentioned above said, “The due diligence process for the asset has been concluded recently, and currently the final documentation is going on. The deal is expected to be concluded soon as both the parties have frozen the structure of the transaction.”

The project has recently been completed and the developer is in the process of receiving few civic approvals, following which it will be concluded. Adani Realty is also one of the companies that is working on closing few leasing transactions here.

In one such lease deals, Swiss multinational pharmaceutical major Novartis’ India arm has entered into an agreement to pick up over 1lakh sq ft office space in this commercial project. This was one of the largest front office commercial transactions in terms of space in the Mumbai in 2017.

Shapoorji Pallonji Investment Advisor is also kept in the loop on the progress of space leasing transactions in this commercial project.

In its first-ever real estate related engagement in India in October the global insurance and asset management major Allianz Group teamed up with Shapoorji Pallonji Group to create an investment platform for office properties.

The platform, SPREF II, will be a Singapore-domiciled, rupee-denominated and close-ended fund planning to raise $500 million in equity.

After partnering with the Canada Pension Plan Investment Board (CPPIB) in 2013 for a platform with an initial target corpus of $200 million this is Shapoorji Pallonji Investment Advisors’ second such tie-up.

The commercial real estate has been registering a healthy growth across prime office markets in past three years.

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Japyee’s Yamuna Expressway Sees A Bidding By Tata Housing And Lodha

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Yamuna Expressway

Jaypee Infratech shares saw a jump of nearly 10 per cent in Monday’s trade after some of the major developers like Tata Housing and the Lodha Group, filed initial bids for the debt-laden realtor and road builder.

These two real estate giant have shown their keenness to own Yamuna Expressway, a project by Jaypee Infratech, the fate of which is now being decided at the Supreme Court. Also the other major participant is the country’s dedicated platform for insolvency resolution, the National Company Law Tribunal (NCLT).

Being the prime concrete road project, Yamuna Expressway starts at the eastern end of Noida-Greater Noida Expressway and runs up to Agra. A toll of slightly more than Rs 2 per kilometre is being charged by the Yamuna Expressway, for every car. An extensive land bank makes the property’s richest attraction, with facilities that are either proposed or already functioning in the immediate vicinity of the access-controlled motorway.

Yamuna Expressway is one such major structure sharing the connectivity with some of the important landmarks in the state. One such architecture is India’s only operational Formula One racing track, located along the expressway. Another influential attraction is the site of the capital region’s second proposed airport, which is closer to the first toll gate from the Greater Noida end. The motorway shares its vicinity with one of the biggest urban campuses of a state-run university. The mega convention centre hosting the annual Auto Expo is also connected to the Yamuna expressway.

In an anticipating decision in regards to a Supreme Court’s ruling, of barring the promoters of Jaypee group from selling or transferring assets, the Reserve Bank of India has ordered banks not to initiate the bankruptcy proceedings against Jaiprakash Associates. Which is the parent group of Jaypee Infratech.

It all started after the IDBI Bank filed to start insolvency proceedings in August against Jaypee Infratech, causing an appeal by homebuyers resulting into the court ruling. The bidding has seen many responses, but eventually all these initial expressions of interest will boil down to a binding offer. Which is a commitment from an interested party to purchase the assets. These bidders, apart from purchasing the assets, are supposed to infuse around Rs 2,000 crore to complete the projects already taken up by Jaypee Infratech.

Earlier in the August, the National Company Law Tribunal (NCLT) Allahabad bench admitted IDBI’s insolvency proceedings against Jaypee Infratech. As Jaypee Group failed to repay its various loans amounting to Rs 526 crore. Anuj Jain has been appointed as the interim resolution professional (IRP) by the NCLT, to carry out proceedings under the Insolvency and Bankruptcy Code. But in September, there came a stay on this process by the Supreme Court, after the appeal by Jaypee Infratech homebuyers.

The company’s saw a total debt of Rs 8,300 crore, with an interest overdue of Rs 1,400 crore on last year’s March. Supreme Court will see a resolution plan from the Jaypee group, in order to ensure a debt restructuring process, enabling the group to meet its obligation.

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