Tag Archives: A Raja

IL&FS, DB Realty & Rural Development Ministry – Its all in the family

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By Ashok Wankhade

Track2Realty Exclusive-III

IL&FS, DB Realty, A Raja, Telecom Scam, 2G Spectrum Scam, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyIn an obvious chain of patronage IL&FS, the company which gets the contract opts for Sanganer project Rajasthan from where Arvind Mayaram’s mother Indira Mayaram has been contesting Assembly elections and Mayaram and family has farmland there.

The second contract goes to the then Rural Development Minister C P Joshi’s constituency Rajasamand and the third in Uttarakhand where Mayaram family has benifitted from their N D Tiwari connections. The Trust Anirudh Mayaram Foundation registered on 7th June 2005 gets a corpus grant of Rs 11 Lakh from the Uttarakhand Government in which Arvind Mayaram is the Member Secretary.

Doesn’t this prove that the Inter-Ministerial Empowered Committee which has done the appraisal has also been kept in dark and manipulated by the Financial Advisor and Additional Secretary of the Department?

No probe has been ordered into the link between IL&FS and the DB Group where IL&FS invested pre-IPO and then had the impudence to place its executive director, Shahzad Dalal as an “Independent Director” with DB Realty. He quit in a heart-beat once the arrest of  Shahid Balwa came to light in the 2G Scam. IL&FS was also a lender to Raju’s of Satyam and they used the Company Law Board to take over the shares of Maytas, overlooking minority shareholders.

Incidentally, Member of Parliament Sumitra Mahajan, who is also the Chairperson of the Standing Committee of Parliament on Rural Development, has also written to the Rural Development Minister Vilasrao Deshmukh pointing to the favour by the senior official of the ministry to the IL&FS.

In the letter Mahajan says that IL&FS Company was favoured by senior bureaucrats of the ministry because the close relative “is working with M/s IL&FS”.  Requesting Deshmukh to look into the matter personally, Mahajan says, “if it is true, then it is clear violation of Rule 4 of the Central Civil Services (Conduct) Rules 1964, which indicates that the civil servant cannot give contract to a company where his/her close relatives are working”.

But despite the emergence of the fact that IL&FS had invested in scam tainted DB Realty the Rural Development Ministry has continued to carry on its partnership with the infrastructure and finance company.  Reports suggest that more projects are in the pipeline which would be awarded to IL&FS under the Public Private Partnership (PPP) scheme of the government for the country’s rural areas.

IL&FS & Rural Development Ministry’s largesse to DB Realty

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By Ashok Wankhade

Track2Realty Exclusive-I

IL&FS, DB Realty, A Raja, Telecom Scam, 2G Spectrum Scam, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyAt a time when investigations into the “mother of all scams” the 2G spectrum allocation scam allegedly by former telecom minister A Raja and owners of some telecom firms are in full swing and the Apex Court is monitoring the investigations, it has come to light that the Rural Development Ministry has been awarding projects to a major infrastructure and finance company, IL&FS which had invested in the scam tainted DB Realty.

The IL&FS, in which a number of government agencies have a major stake had invested in the Shahid Balwa’s DB Realty and that too before the realty firm had come out with its IPO last year. Balwa was arrested in February and is in judicial custody along with Raja and his other associates for allegedly causing the national exchequer a loss of Rs 1.76 lakh crore while doling out telecom licences in 2008 on the first-come-first-serve basis.

Balwa, country’s youngest billionaire, had promoted Swan Telecom and after getting the telecom licence had sold 45 per cent stake to UAE-based Etisalat for $900 million in 2009. The telecom firm promoted by him is now known as Etisalat-DB. There are also allegations against him that over Rs. 200 crore was transferred by DB group to a media company owned by DMK party members.

Despite the knowledge of the infrastructure and finance company IL&FS having stake in the scam tainted DB Realty, the Rural Development Ministry has awarded it with three projects under the provision of Urban Amenities in Rural Areas (PURA) and that too against the norms of the scheme. Reports suggest that these projects have been allocated to the infrastructure and finance company as a result of the alleged bias of a senior official of the Rural Development Ministry, whose son is working with the company.

Realtors in telecom scandal by default or by design

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By: Ravi Sinha

Track2Realty Exclusive

A Raja, Niira Radia, 2G Spectrum Scam, Ratan Tata, Sanjay Chandra, Unitech, PAC, Public Accounts Committee, CBI, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe chargesheet has been filed by the CBI against former telecom minister A Raja in the 2G spectrum scam with the leading real estate company Unitech and two others being a party to the criminal conspiracy, forgery, cheating and corruption. The question is not just about the manipulation of rules by Raja to make ineligible realty companies causing a loss of Rs.30,984 crore to the state exchequer, but if CBI sources are to be believed it was a result of a much larger game that was taking shape even before A Raja had become the telecom minister.

According to the CBI sources the seeds of greed by the realty companies and Raja’s involvement go back to his previous tenure as the minister of environment. It was then that all the realtors needed the minister’s favour for getting the environment clearance by the ministry. This unholy friendship culminated in all these companies getting the environment clearance certificate to their projects in the pipeline.

However, there were other vested interests who wanted A Raja to be the telecom minister for getting a pie of the much larger cake. After all, the telecom spectrum allocation was the next big thing and Raja was subsequently planted over there to serve the purpose. In the process the realtors who had already paid to Raja in advance for getting the environment clearance got their projects stuck up. A Raja was no more in the environment ministry to get those files cleared.

The old friendship had by then blossomed into close working relations as well. As a result, the friends in real estate community were asked to apply for the 2G spectrum which was seen as a very lucrative business. That is how the realty companies were shown the entry gate of telecom and 2007 onwards there had been a race among the realty companies to get into telecom. The genesis of one of the biggest corruption scandal was more by default than design.

DB Realty absorbed Dawood money, believes CBI

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Shahid Balwa, DB Realty, Sharad Pawar, Dawood Ibrahim, 2G Spectrum scam, Niira Radia, A Raja, CBI, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTHE CBI interrogation of DB Realty’s MD, Shahid Balwa, in connection with the 2G spectrum scam has thrown up the possibility of the real estate magnate having links with India’s most wanted man, Dawood Ibrahim.

According to senior CBI officials, Dawood invested large sums of money in Balwa’s firm, which was used by him to finance many of his business deals. 
To keep the money flowing, Balwa is learnt to have made several trips to Dubai, Dawood’s hideout, in his private airplane. The agency is now planning to seek details of these trips from the Directorate General of Civil Aviation. Investigations have revealed that a senior politician also accompanied Balwa on many of these trips.

“We will seek details of Balwa’s frequent visits and are probing the underworld link,” said a senior CBI official, on condition of anonymity. He added that the checking systems in place for a private plane are very lenient and anybody can bribe their way out.

“All it requires is taking care of the ground staff. No one is privy to what is being brought into and taken out of the country in a private plane. Balwa may have misused this laxity.”

Balwa was arrested by the CBI on Tuesday for his alleged involvement in the 2G spectrum scam, which has also seen the arrests of former telecom minister A Raja, his former personal secretary R K Chandolia and former telecom secretary Siddharth Behura. Investigations had revealed that Swan Telecom, a company floated by Balwa, was allegedly favoured in the allocation of 2G spectrum, which caused a loss of Rs 22,000 crore to the national exchequer.

CBI sources said that the sudden, phenomenal growth of the firm led by the 37-year-old managing director in the last five years had raised several eyebrows. The CBI had also said that it was necessary for it to confront Raja and Balwa together to piece together the missing links of the scam.

ED asks Indian missions to check money trail of Unitech

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3rd of the investigative series

By: Ravi Sinha

india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, DLF, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, K.P. Singh, Rajiv Singh, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaThe Enforcement Directorate has asked the intelligence officers in different Indian Missions to check the money trail in the 2G spectrum scam. Special Director, ED has sent out communiqués to Cyprus, Mauritius, British Virgin Islands, Jersey, Isle of Man, Singapore, Dubai, and Tripoli (Libya, Norway).

The sources have specifically been asked to check the antecedents of the money coming into Unitech Wireless under the ambit of Prevention of Money Laundering Act. Documents in possession of ED indicate that Unitech through its wholly owned subsidiaries/associates/business partners situated in various countries made several interlinked financial transactions to camouflage the real beneficiaries.

What has been prelude to letters being issued to some of these tax haven is incriminating evidence. Track2Realty has learnt that Unitech Builders and Estate, Adonis Projects, Aska Properties, Hudson Properties, Nahan Properties, Unitech Infrastructure, Volga Properties have been identified as recipient companies.

The Mission in Brussels has been told to follow Cyprus based companies which are related to Unitech – Bageris, Bolemat, Boracim, Brucosa, Comegenic, Crowbel, Firisa, Nuwell, Serveia etc. Details have been asked for on the nature of business conducted by these companies, copies of their balance sheets, names of promoters/directors and other significant details.

In Mauritius, it has been established that Burley Holdings and Fastnet Holdings are related to Unitech. Similarly, the British High Commission has been asked to look into British Virgin Islands, Isle of Man and Jersey. In British Virgin Islands, Empecom Corporation has been discovered to have a link to Unitech. In Jersey, it is Unitech Global Ltd that has been identified. In the Isle of Man, Unitech Hotels, Unitech Malls and Unitech Overseas have been identified.

In Singapore, Unitech Office Fund Trustees Ptv Ltd and Telenor Asia have to be investigated. In Dubai, Unitech Ltd has been identified and in Tripoli, Unitech Ltd Libya branch has been identified. In Norway, details about Telenor Mobile Communications have been asked for. In Mauritius, details about Idea Cellular related entities – TMI Mauritius and TMI India have been sought.

FM asks monitoring on realty companies into housing scam

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2nd of the investigative series

By:Ravi Sinha

RBI, Reserve Bank of India, CREDAI, Loan for bribe scam, LIC housing scam, Track2Realty, Track2Media, india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaIn the immediate aftermath of the bribes for loan scam involving LIC Housing Finance, the Finance minister Pranab Mukherjee in conjunction with Dept of Financial Services asked for a complete monitoring of all the companies mentioned in the CBI case filed. All public sector banks, financial institutions and state owned insurance companies have been asked to examine their exposure to the 21 companies named by CBI in the housing loan scam, and give a subsequent compliance report.

CBI has named Mantri Realty, Sigrun, Entertainment World, Indore City Treasure, Lavasa, Ashapura Minechem, BGR Energy, OPG Group, Krishna Group, Suzlon, Emaar MGF, MBDB, Gold Souk Project, JP Hydro, Adani Group, JSW Power, Religare, DB Realty, Pantaloons, Adalite and Mtech. Lavasa is already under environment ministry fire, while DB Realty is one of the beneficiaries of the 2G licensing scam and Emaar MGF built the CWG Village.

Finance Minister has instructed PSBs, DFIs and insurance companies to take appropriate action against the companies and individuals as per established procedure. All of them have been instructed by Dept of Financial Services secretary R Gopalan to examine their exposure to these errant companies.

They have also been told to undertake an independent valuation on the asset quality, documentation and compliance of their prudential requirements in all these companies. Instructions are also in place for fresh assessment of non-performing assets and strengthening and monitoring of the processes to identify incipient sickness.

All loans should follow procedures and diligence mechanism. Chairmen of PSB, FIs and insurance companies have been asked to give their compliance reports, as also rapid assessment on the portfolios mentioned in the CBI report.

8 out of 10 home buyers in India sulking

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Track2Realty exclusive survey on customer satisfaction

Track2Realty, track2media, ravi sinha, india real estate news, real estate news india, india property news, property news india, india realty news, realty news india, property news, property survey, real estate survey, 99 acres, 99acres.com, ndtv, ndtv.com, ibnlive.com, cnn-ibn, aajtak, zee news,

By: Team Track2Realty

8 out of every ten home buyers in the Indian cities are sulking with the unfair trade practices of the real estate developers. Only 20 per cent of the buyers said they received a defect-free home and timely possession. The low customer satisfaction index was as much evident with developers offering affordable housing as with luxury housing. But as a surprise pack most of the respondents, as high as 74 per cent said they would not mind investing in the stocks of these realty companies, since the absence of any regulatory mechanism will help these companies continue to grow with the unfair trade practices.

The Survey clearly points out that builders have faulted in satisfaction survey. Move-in date delays top the list of concerns cited by home buyers in Track2Realty survey.  Poor construction quality and customer service problems ranked next. A large 70 per cent of the house buyers repent investing their life time savings on the house. 65 per cent of the home buyers, who have seen the property price appreciating, are still looking for a better house worth living. The prime drivers of this customer dissatisfaction was found to be—

  1. Delayed possession
  2. Poor construction quality
  3. Customer Service Problems
  4. Floor Area & Carpet Area less than promised
  5. Hidden Cost of the developers

A shockingly high number of Indians are angry that the worth of their hard earned money has not been what they would have liked to. One in three, 31 per cent, have either filed a case in consumer court or are planning to do so against the developer. More than two in five, 43 per cent, of those who filed a case against the builder have even refused any out-of-court settlement in exchange of builder’s promise of getting the home repaired. Seven in 10, 69 per cent, have serious issues with the facility management of the developer.

Two in three, 67 per cent, are sulking the extra amount they paid in hidden cost of the property.  Three in five, 61 per cent, look at their home as more of a future investment than a place where they would like to spend the life by choice. Among the double income families almost nine out of 10, 87 per cent, are already looking for a better home and won’t mind disposing off the home that they so fondly bought within the last five years.

Majority of the home buyers, 77 per cent said they would never like to buy the property from the same developer. 92 per cent were so dissatisfied with the quality of construction that they said their preference would now be for the government housing. Buyers of new homes across the country are so disillusioned that the customer satisfaction score on a scale of 1,000 was a pathetic 212.Track2Realty, track2media, ravi sinha, india real estate news, real estate news india, india property news, property news india, india realty news, realty news india, property news, property survey, real estate survey, 99 acres, 99acres.com, ndtv, ndtv.com, ibnlive.com, cnn-ibn, aajtak, zee news,

“It’s clear that new home buyers are sending a message that there is considerable room for improvement in how some builders handle what is probably the largest purchase consumers ever make,” said Rakesh Panini, a home buyer in Mumbai.
Additionally, the study noted that the importance of real estate agents has increased substantially in the sector, with developers relying on the negotiating skills of their chosen agent and help in navigating the market. The study found that builders who proactively communicate with buyers enjoy significantly higher levels of customer satisfaction than those who wait for customers to contact them.

The results were based on a set of 27 questions to the buyers of single-family homes in the past 5 years from 28 leading builders across the country. The answers were grouped into eight key factors of satisfaction, which were weighted according to how important buyers said they were. The survey found that “home readiness” is the No. 1 issue for buyers. That means the accuracy of the completion date, when the builder promised the home would be ready, and the condition of the home at the pre-delivery inspection and after. Builders who delivered homes on time did especially well in the survey because readiness was weighted at 23.8 per cent of the total score.

The second big issue is construction quality, weighted at 23.6 per cent, and includes how customers rate the quality of their homes in terms of raw materials used and finishing done. Next issue is how quickly builders handle customer complaints and post possession obligations as well as the general courtesy of their staff. These three account for almost 65 per cent, and they are clearly areas where customer expectations are not being fully met.

Methodology

These are the findings of a ten city exclusive survey by Track2Realty. Track2Realty conducted this survey in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Ahmedabad, Jaipur, Patna, Kanpur, Allahabad and Indore between December 1 and 25. A structured questionnaire that was based on the satisfaction index and their choices and concerns was given to male and female respondents who belonged to a mix of qualitative and quantitative socio-economic groups.

However, the survey demography belonged predominantly to the middle and upper middle class of society, and that a significant number of respondents, even in the given tier-II and tier-III cities were buyers of mid segment houses. Majority of these buyers were first time buyers who had shifted to the new house either from parental homes or rented accommodation.  While 62 per cent of the buyers were first time buyers, satisfaction was equally low with the second time home buyers. 38 per cent of these buyers who bought the second house and were wise enough to understand the developers’ marketing jargon and hidden costs involved, were equally dissatisfied with their possession.

A total sample size of 2000 house buyers was initially targeted. Out of these 1672 samples were finally zeroed down and considered for analysis. Rest 328 respondents were not considered for evaluation since they either gave incomplete questionnaires or were rejected for non-seriousness of their choices.

The total sample size had 34 per cent females and 66 per cent males as a representative set. The surveying method was one-on-one interviews, in which the researchers explained the theme and purpose of the survey and then handed over the questionnaire to the respondents to be filled and returned the next day. All the researchers being the local residents of the city, they managed to assure the respondents complete anonymity.

CBI, Radia and reality of Unitech

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1st of a series of expose on 2G scam

Track2Realty, Track2Media, Ravi Sinha, Niira Radia, A Raja, 2G spectrum scam, 2g scam, telecom scam, telenor, unitech, India realty news, realty news india, india real estate news, real estate news india, india property news, property news india,

By: Ravi Sinha

The CBI investigation into the 2G spectrum scam is learnt to have zeroed on how lobbyist Nira Radia and former telecom minister A. Raja circumvented all the norms to benefit the real estate company Unitech. The loss caused to the public exchequer and corresponding gain to the realty company is not confined to mere arbitrary granting of second-generation mobile telephony licenses. The close link of Raja and Radia into the real estate company actually led to the debt ridden company getting fresh funds with license mortgaged and the government standing as a guarantor.

The Supreme Court asking the CBI to look into all bank loans given to telecom licensees has brought to the investigation the fact that the company mortgaged the same license to raise funds. The government stood as a guarantor to ensure loans worth Rs 2000-2500 crore by this licensee in May this year. Telecom bureaucrat who signed one of these agreements has already been questioned by the CBI. The loans were secured through tripartite agreement between the company, a consortium of banks and the government. The bureaucrat, a former official of the access services wing of the telecom department signed the tripartite loan agreement on behalf of the government.

The CBI’s suspicion that A. Raja and Nira Radia benefitted from Unitech by awarding 2G spectrum and license is based on the seized documents and also from its questioning of Radia, Raja and several bureaucrats. The documents clearly suggest as to how the debt ridden Unitech mortgaged its telecom license to get the funds needed to start operations and the government stood guarantee to its loans with a consortium of banks. A copy of this tripartite loan agreement is in possession of Track2Realty.

Unitech is incorporated as a company into real estate business and had no experience or expertise in the telecom sector till it got the license. Unitech was awarded telecom license and 2G spectrum in 2008 as a real estate firm, but changed its name a few months after it got the license. Though Radia’s PR firm Vaishnavi Corporate Communications maintains that it has serviced no client in telecom other than Tata Tele Services, the firm stands out as the official PR agency for the Unitech’s core business into real estate.