Unitech Ltd, India’s second largest real estate company, and DB Realty Ltd continued to struggle with sales in the June quarter amid rising interest rates and slowing demand—a seemingly unceasing plight they share with most of the sector.
DB Realty Ltd has reportedly sold off its 50% stake in a south Mumbai property to the Adani Group.
The six-acre land parcel owned by Tulip Star Hotel (formerly Centaur Hotel) at Juhu in Mumbai will continue to be entangled in legal battle for some more time, despite the arbitrator allowing termination of sale agreement entered in 2005.
The DB group, Etisalat’s partner in India, has moved the Company Law Board (CLB) against the UAE-based company.
DB Realty is looking to raise funds via private equity for a couple of its projects.
In 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.
At 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.
With the Central Bureau of Investigation (CBI) charging Unitech Managing Director Sanjay Chandra as a key accused in the 2G spectrum scam and his brother Ajay Chandra appearing as a CBI testimony, it is generally believed that the two Chandra brothers are falling apart.
Hyatt Hotels Corporation, one of the world’s biggest hotel chains, is not worried with the DB Realty’s scam. The Chicago-headquartered group is going ahead with plans of opening five hotels with the Mumbai-based DB Group.
DB Realty, the tainted Mumbai-based real estate developer whose name figured in the 2G spectrum investigations, has lost its fourth director since February.