The Economic Survey, while recognising the importance of the services sector (it accounts for 59 per cent of gross domestic product), has raised concern over the second largest economic activity–housing & real estate. Three months after the government rolled back its decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, the survey referred to it as a major challenge before the sector.
The Company Law Board (CLB) has asked real estate company Unitech to decide by Monday if it wanted to buy its joint venture partner Telenor’s 67 per cent stake in telecom company Uninor or sell its 33 per cent stake to the Norwegian firm.
As the real estate sector in the country stands at a critical juncture, the performance of this sector will be largely governed by the following drivers.
The Unitech Group plans to drag global communications major Telenor to the Company Law Board citing ‘gross mismanagement’ of their joint venture mobile phone operations by the Norwegian telco.
Norwegian telecom giant Telenor has started a process to raise up to Rs.8,000 crore in its Indian joint venture with real estate developer Unitech, said a top company executive.
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.
A senior high ranking officer of a Central Intelligence agency revealed to this correspondent that in the investigations surrounding the assets of Shahid Balwa when the investigation stirred towards the DB Realty assets in Goa.
The on-going investigations by CBI into the various business enterprises and real estate assets of 2G Scam accused Shahid Balwa of DB Realty is to now bring the controversial project into the eye of the storm.
DB Realty Ltd has reportedly sold off its 50% stake in a south Mumbai property to the Adani Group.
The Ministry of Rural Development has decided to get the names of the companies IL&FS Ltd, Infrastructure Kerala Ltd, Marg Ltd, Megha Engineering Infrastructure Ltd and Seri Infrastructure Finance Ltd cleared from the Ministry of Corporate Affairs.