Tag Archives: Dawood Ibrahim

Few and far land deals ahead-I

Posted on by Track2Realty

Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, 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 PropertyTrack2Realty Exclusive: Land as the major input of real estate business is still attracting a premium though land assembling at the cost of project execution has backfired on the fortunes of many realty companies in India.

Track2Realty studies the major land deals in the last one year to conclude project execution and serving the interest on loan has taken precedence over the pipeline visibility of the sector.

Some land deals nevertheless will continue to defy the trend in the year ahead, but no land purchase is expected for just creating land bank.

Conventional demand and supply wisdom of economics suggests short supply of a scarce commodity with expected price barrier in future attracts hoarding. Buyers even tend to go over drive when the product falls into non-perishable commodity.

In the business of Indian real estate land assembling has for long been the driving factor with realtors more focussed on assembling land instead of execution of launched projects. The downturn in the last four years, however, taught them a lesson that financial sustainability is more important than the pipeline visibility.

Many developers known for land buying spree have, of late, woken up to the reality of dried funding options, stalled projects, exiting investors and overall unsustainable business model.

And hence even though land assembling getting costlier and cumbersome post-Land Acquisition Bill, the land bank is something that is at the bottom of the developers’ focus now.

Facts speak for themselves. As per realty consultancy Cushman & Wakefield (C&W), India has witnessed around 25 per cent decline in land deals with expected revenue of around Rs 15,000 crore in the year 2012, as against land deals worth Rs 20,000 crore in 2011.

According to C&W, India had seen the transactions worth just around Rs. 7000-8000 crore in 2012 (till October).

Of course, sales of housing units have fallen by about 30 per cent across the country in the last one year.

“The market sentiment is very negative. This year we may see land deals worth Rs 15,000 crore happening across various locations in the country,” Cushman & Wakefield (C&W) Executive Managing Director (South Asia) Sanjay Dutt says.

…to be continued

Sahara bypassed norms to raise funds, SC told

Posted on by Track2Realty

Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, 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 PropertyThe market regulator Securities & Exchange Board of India (SEBI) on Tuesday told the Supreme Court that the real estate arm of the Sahara group of companies had no right to mobilise Rs.27,000 crore from 30 million investors through debentures without complying with the regulatory regime.

The SEBI said the company raised the money through optional fully convertible debentures without complying with the regulatory regime of the stock market and listing on the bourses.

Senior counsel Arvind P. Datar, who appeared for the SEBI, told the apex court vacation bench of Justice K.S. Radhakrishnan and Justice J.S. Khehar that Sahara India Real Estate Corp. Ltd. (SIRECL) initially had every intention of going public but sought to camouflage it by saying that it did not intend to do so.

The other Sahara company involved in the case is Sahara Housing Investment Corp Ltd.

The court asked the Sahara firm’s counsel as to what was the material to show that it was not a public issue but a private placement.

Any company which made an private placement of shares or debentures to more than 49 people was treated as having made a public issue, and consequently was within the jurisdiction of the SEBI, Datar said.

Contending that the apex court should not disturb the Oct 18, 2011, order of the Securities Appellate Tribunal (SAT), Datar said that SIRECL had mopped up Rs.27,000 crore from 30 million investors and the entire amount was unsecured.

The balance sheet of the Sahara company did not inspire any confidence about the security of such a huge amount, he said.

The SAT directed SIRECL to refund the money to investors within six weeks along with 15 percent interest.

The apex court was told that of the Rs.19,400 crore raised by the companies, Rs.2,000 crore had been invested.

The senior counsel told the court that it would be “just and proper in the interest of justice” that the two Sahara companies be directed to refund all the amount that had been collected in violation of the statutory provisions governing the securities market.

The court was told that when SEBI followed up its query with SIRECL, it was told that the company had written to the corporate affairs minister and was awaiting a reply.

“The fact which needs more attention is that this massive mobilisation was made outside the well developed investor protection framework developed by the SEBI,” Datar said.

The senior counsel told the court that the prospectus filed by SIRECL was “false/misleading containing untrue statement”

Vacate Sara-Sahara, court told tenants

Posted on by Track2Realty

Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, 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 PropertyThe 31 tenants in the Sara and Sahara shopping centres, which are allegedly owned by underworld don Dawood Ibrahim, will have to vacate the premises after the city civil court on Friday dismissed their appeal challenging the eviction notice. While dismissing their appeal, Justice GA Sanap observed that the land belonged to the Government of India and the tenants’ possession of the property was illegal.

The court has, however, stayed its order for six weeks to allow them time to approach the Bombay High Court. If they don’t move the higher court, the central public works department (CPWD) can take action and evict the tenants.

The tenants of the two shopping centres near Crawford Market had challenged the eviction order issued by the estate officer in December 2010-January 2011. Earlier, the estate officer had issued show cause notices in 2008.

Initially, the CPWD had issued the eviction notice, but the tenants had challenged it before the estate officer.

GR Sharma, the government’s special counsel, had argued that the land was originally leased out in 1939 by the erstwhile British government to a Mohamedbhoy Abdullabhai Moonim. The agreement was between the two parties, with no clause permitting sub-letting or handing over tenancy rights, Sharma said, pointing out that the deal also did not recognise that the rights would be passed to a leasee’s heir after the original tenant passed away.

Thus, when Moonim passed away in 1979, the ownership rights reverted to the government of India, Sharma argued.

In 2001, Global Marketing, a firm headed by convict Abdul Rehman sub-let the premises to another firm, Sara Associates, allegedly in connivance with officers from the Brihanmumbai Municipal Corporation. Sara Associates then allowed tenants to open shops in the complex.

The alleged fraud came to light when Nafisa Shaikh, a hutment dweller, lodged a complaint with the court alleging that “Rehman boss” had threatened her to vacate her hut, which was blocking the entrance to the shopping centres.

Dawood’s brother, Iqbal Kaskar, was arrested for illegal construction on the plot, but the special court acquitted him for lack of evidence under the Maharashtra Control of Organised Crime Act (MCOCA). The court also acquitted builder Gulam Nabi Tanwar and four civic officials in 2007. It convicted three persons in the case.