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08/09/2019

Ready to give tax breaks if NBCC completes Jaypee's projects: Centre to SC

The central government on Tuesday told the Supreme Court that it was “willing to give tax concession running into hundreds of crores” to the Jaypee group, and enhance compensation being paid to the farmers, but only if state-owned NBCC (India) was allowed to complete the pending projects of debt-laden Jaypee Infratech. A two judge bench of Justices A M Khanwilkar and Dinesh Maheshwari issued notice to NBCC and sought its response on the issue by September 5, when it will next hear the issue.

The Jaypee group on the other hand told the apex court that it had no problems if NBCC was asked to submit a revised offer, but the former should also be allowed to submit its proposal. Senior advocate Fali Nariman, appearing for the debt-laden real estate firm, said that Jaypee was willing to repay 100 per cent of the lenders’ dues and finish all pending projects within three years.

The two-judge Bench however said that it would look at NBCC’s revised plan first and only then consider any other plans.

In its latest offer, NBCC has proposed Rs 200-crore equity capital, transferring 950 acres worth Rs 5,000 crore as well as the Yamuna Expressway to banks and the completion of flats by July 2023. The offer was to settle an outstanding claim of Rs 23,723 crore of financial creditors. NBCC has made it clear it will withdraw its offer for the company if the government authorities rejected approval for the transfer of Jaypee’s land and the Yamuna Expressway.

The National Company Law Appellate Tribunal (NCLAT) had on July 30 extended the Corporate Insolvency Resolution Period (CIRP) of Jaypee Infratech for 90 days, during which it had said that fresh bids for the company could be submitted. A two-judge Bench led by Chairperson Justice S J Mukhopadhaya had then said that all old bids, including that of NBCC, would be invalid. The new bidders, including Adani Infrastructure and Development and NBCC, if they choose to submit fresh plans, will be free to do so in accordance with the law.

Jaypee was taken to the NCLT by an IDBI Bank-led consortium for failing to repay debt worth nearly Rs 24,000 crore.

08/09/2019

Jaypee homebuyers still hoping for dream houses

While the SC has ordered early addressing of similar problems faced by home buyers of Amrapali and Unitech projects, buyers of Jaypee continue to wait for end to their woes.

The theatrics around Jaypee liquidation would jump over 350 days since its beginning last year.

New Delhi: For 30,000 families who bought flats in Jaypee projects in Noida, there seems to be no end in sight to their problems as the resolution process continues to drag on.

The National Company Law Appellate Tribunal (NCLAT) on Tuesday extended the resolution period of debt-ridden Jaypee Infratech for another 90 days.

While the Supreme Court has ordered early addressing of similar problems faced by home buyers of Amrapali and Unitech projects, the home buyers of Jaypee continue to wait for end to their woes.

The Jaypee Infratech has assets including the Yamuna Expressway, hospitals and it has a debt of nearly Rs 8000, public money raised from various banks. It is a perfect case to be categorized as" lifting the corporate veil."

Jaypee assets can be monetized, as there are many across the country. But, in the case of Jaypee, the legal battle is being fought between homebuyers and consortium of banks before the bankruptcy tribunals.

Homebuyers want banks to support them to build their dream homes, but banks like to liquidate the assets and ensure maximum should be recovered to strive-off these loans from non-performing assets (NPAs) radar.
Today, the theatrics around Jaypee liquidation would jump over 350 days since its beginning in the last year.

The Jaypee matter before the Supreme Court assumes larger significance, as it is anticipated that the court might declare some radical observation.
The Supreme Court in November 2017 had asked Jaiprakash Associates (JAL), JIL's parent company, to deposit Rs 2,000 crore in installments in order to cover part of its subsidiary JIL's liability towards 30,000 homebuyers. Till May 2018, JAL had deposited only Rs 750 crore with the apex court registry, and this has been transferred tribunal," said Ashwarya Sinha, counsel for homebuyers, citing wheels within wheels framework adopted by Jaypee.

The two-member bench of NCLAT has already granted 45 days to resolution professional (RP) appointed for the Jaypee Infratech to finish the process of inviting new bids for the completion of the projects. But according to homebuyers' banks are not in favour of this, as they prioritize their debt over the rest.

The tribunal has directed the RP and Committee of Creditors (CoC) of the company to sum-up the process of engaging new bidders. "Adani is at the foremost bidder. We think this is a positive movement for the homebuyers'.

The tribunal has rejected the plea of JAL to be considered as eligible to submit its bid, "said M L Lahoti counsel for a set of homebuyers'.

The NCLAT had asked NBCC to submit fresh resolution plan, despite its bid being rejected by CoC.

The Supreme Court in Jaypee matter earlier this month asked the Centre to come out with a proposal addressing difficulties faced by homebuyers who are yet to receive possession of flats despite paying money to builders. The court sought a proposal from the Centre.

The court observed that with the ongoing IBC (Insolvency and Bankruptcy Code), it cannot do much, but the Centre could suggest a way forward. This observation was made while hearing a plea seeking delay of JIL liquidation; in fact it has crossed the deadline for the corporate insolvency resolution process.

The Centre assured that it will respond to the plea. The matter is listed in the Supreme Court for detailed hearing .

18/05/2019

The government has decided to back homebuyers caught in insolvency cases and told the National Company Law Tribunal (NCLT) that the majority vote of homebuyers cast in favour of a resolution should be treated as “the voting preference of whole sub-class in Committee of Creditors (CoC)”.

In its affidavit before the tribunal, the ministry of corporate affairs (MCA) has said, “…considering the recommendation of Insolvency Law Committee (ILC) and larger public interest for actualising of the preamble of the Insolvency and Bankruptcy Code(IBC), viz, an outcome-based approach, which would facilitate resolution of Jaypee Infratech Limited (JIL) over liquidation, may be adopted.”

It went on to say that homebuyers should be treated as a sub-class within the ambit of the financial creditor.

Several resolutions, including the appointment of a resolution professional for Jaypee Infratech, have been hit as the mandated 66% vote has not been met. This had prompted homebuyers to seek an interpretation of the law by the NCLT.

In a similar case involving AMR Infrastructure, the NCLT had used the principle of ‘first past the post’ and recommended that once the majority threshold is crossed, it should be treated as the voting preference of the whole sub-class in CoC.

However, in AMR Infra, only buyers were the creditors. Therefore, it could not be applied in the Jaypee Infratech case, where banks and financial institutions are also creditors.

In case of AMR Infra, the principal bench of NCLTDelhi said in case of real estate (commercial & residential) comprising 100% voting share in CoC, a resolution would be deemed to be passed if it is voted by highest number of financial creditors in the class of real estate (commercial & residential).

In its affidavit, the MCA cited the AMR case and said, “Following the principle of ‘first past the post’, it was recommended that once the majority threshold is crossed, it should be treated as the voting preference of whole subclass in CoC.”

A new proposal on NBCC’s resolution plan is currently under voting, and with banks unlikely to back it in its present form, the move is expected to be defeated.

18/05/2019

The National Company Law Appellate Tribunal (NCLAT) has annulled the voting by Committee of Creditors representing Jaypee Infratech’s lenders on state-owned NBCC's bid to acquire the beleaguered company.

Hearing a plea by IDBI Bank, a key lender to Jaypee Infratech, seeking a stay or annulment of the voting process, a three-member bench of the NCLAT on Friday asked the financial creditors to conduct a fresh voting from May 31.

IDBI Bank had opposed the state-run company’s for the debt-hit company terming it as a conditional offer.

The bench has also allowed CoC to renegotiate with the sole bidder, NBCC India, on its offer.

On Thursday, home buyers and financial creditors of Jaypee Infratech started voting on NBCC's proposal to acquire Jaypee Infratech through insolvency resolution process. The voting process was to end on Sunday and the outcome declared on May 20.

According to the Friday’s order, the CoC may approve the plan if it is in accordance with law, but in case of rejection they cannot pass it until the NCLAT approves the rejection of the bid. The NCLAT also allowed nine homebuyers' associations to file intervention application.

Meanwhile, the Allahabad bench of NCLT has allowed debt-stressed realty developer’s insolvency resolution process, which was scheduled to come to an end on May 6, to continue until May 21. This had paved way for the CoC to consider NBCC’s revised bid to acquire Jaypee Infratech.

28/09/2016

Homebuyers who had invested in areas around the Okhla Bird Sanctuary had seen a ray of hope in the government’s final notification setting limits of 100 metres around the eco-sensitive zone around the Okhla Bird Sanctuary on August 19, 2015. With 60,000 apartments expected to be delivered, realty experts, too, said they expected a revival of the Noida market, with which most of the projects around the bird sanctuary are associated. Till date, major signs of revival are still not visible in the market.

Positive outcomes so far have been the slight pick-up in demand in the existing inventory, as claimed by developers; issuing of completion certificates by Noida Authority for housing projects, enabling many homebuyers to get legal possession of their apartments after long delays.

The situation is no different along the Noida-Greater Noida Expressway, a 35 km six-lane highway which connects Noida with Greater Noida, once marketed by developers in the area as the USP of their projects with real estate activity as subdued as in other Noida areas. “Any project along the Noida Expressway boasts of a prime location and easy connectivity to Delhi, Greater Noida and other sectors within Noida, but as other Noida sectors have become equally well-connected and have better locations, the highway can no longer remain a major attraction for buyers. Housing projects in other sectors of the city have also been delivered, but delayed possession in projects near the Expressway means dashed hopes of homebuyers,” says Gaurav Tiwari, a Noida broker who had to shut shop because of poor demand for housing in the market. Now working as a senior relationship manager with a leading real estate consultancy firm, he says “We literally have to beg customers to buy apartments. It is difficult to market premium projects along the Expressway,” Tiwari adds.

For investors, too, the lack of demand is proving to be disconcerting. “I had bought a flat measuring 1,200 sq ft at the rate of Rs 4,050 per sq ft in June 2012 in a leading group housing project along the Expressway. After a year or so, the price went up to Rs 5,200 per sq ft, but today even if I want to sell my flat at Rs3,800 I am not getting buyers,” says Sudhir Sood, a resident of sector 44, Noida.

Some premium and affordable projects have been launched by prominent builders in Noida Expressway

Ravi Sinha is another desperate seller who bought a 3BHK unit in 2009-10 in a project in Sector 151 along the Expressway at R2,100 per sq ft. After six years, he is ready to dispose of property, which is still under construction, but buyers are not turning up.

Developers and real estate agents had for long been saying that the slump in the market had been caused by the National Green Tribunal orders on March 12, 2012, restraining Noida Authority from issuing completion certificates for projects within a 10 km ‘protective’ zone around the sanctuary. Though NGT had not imposed a ban on construction, many developers also stopped work on projects and asked homebuyers to wait for further orders from the government. However, now that the final zone has been demarcated, the builders have shifted blame to other factors such as high interest rates and low confidence of consumers in the market.

“With ambiguity around the eco-sensitive zone in Okhla cleared, Noida has not only seen commencement of possession and delivery but also a slight pick-up in demand in existing inventory. NCR battles with high level of inventory accumulated over several years. As macroeconomic factors do not as yet encourage a sudden spurt in housing demand, developers, too, are staying away from launching new projects. High interest rate and low confidence of consumers on the recovery prospects of the Indian economy have seen them postponing buying decisions. This phenomenon isn’t just restricted to housing but to consumer goods, automobile, etc as well. Muted loan growth too suggests lack of confidence,” says Mohit Goel, CEO, Omaxe Ltd.

Some realtors, however, feel that it’s too early for the market to react to the final notification. “The demarcation of the sanctuary’s protective zone will have a huge impact and will bring positivity to the primary and secondary markets.The Noida market in the last two years faced difficult times and a major reason for this was the uncertainty over the bird sanctuary. Due to this, buyers hesitated to invest in properties. We are confident that the market will now show positive growth due to the resolution of the sanctuary issue and also the reduction in the interest rates of home loans,” says Vidya Basarkod, president, sales and marketing, Jaypee Greens.

Jaypee Greens has over 4500 apartments ready for handover and will start giving possession as soon as the company receives completion certificates from the Noida Authority. “We are hopeful that this will create a positive buzz about our projects and will reassure prospective customers,” says Basarkod.

About the sanctuary issue, Basarkod says, “it did create a sense of uncertainty which affected both the primary and secondary markets. It also was a cause for financial burden to the existing buyers due to delay in possession but we are hopeful that this will not have a long-term effect. The market should show signs of growth and improvements in the coming months. Also customers are intelligent and understand that this was a specific issue and not a fundamental problem with the Noida market.”

30/11/2015

Builders in Noida are unable to hand over more than 30,000 completed homes to their buyers, because of a National Green Tribunal order forbidding the Noida Authority from giving completion certificates to projects within a 10-kilometre radius of the Okhla bird sanctuary.
Developers in Noida say they have in the past seven months since the tribunal’s order lost close to Rs 1,000 crore as they have been holding on the flats, paying interest on their loans as well as penalty to home buyers.
“Everyone is bleeding,” said Vineet Gupta, director of the Ajnara group, which has around 1,500 apartments waiting to be handed over to buyers. Projects of more than 45 developers including Jaypee, Amrapali, ATS, Logix and Ajnara have been impacted, with buyers demanding penalty from them for the delay.
“When the state government has recommended 100 metres around the sanctuary as the eco-sensitive zone then why doesn’t NGT (National Green Tribunal) allow the authority to give us completion certificates,” asks Getambar Anand, managing director of ATS Infrastructure and also the president of the Confederation of Real Estate Developers Association of India (Credai).
“Such a lot of stock has been put at jeopardy because of the decision, notwithstanding the fact that all of us have environment clearances for our projects.” A senior executive at Amrapali Developers said the company has 5,000 apartments ready for possession but it can’t offer physical possession to buyers. “We have sent them intimation for possession sometime back but we can’t give them their homes,” he said, not wanting to be named.
Real-estate developers have been facing a liquidity crunch over the past 12 to 18 months because of a slow economy and the consequent weak sales of apartments. According to property research firm Liases Foras, in the December quarter, unsold inventory rose to about 650,000 apartments, which would take more than 30 months to be sold. That number went up to 700,000 by the end of March 2014.
The situation in Noida puts further pressure on the stressed balance sheets of many developers operating in the area. “There is so much confusion even around how to measure the 10-kilometre radius. No one in Noida is getting completion certificates whether they think they are in the zone or not,” said Ajnara group’s Gupta. Some developers say it has become difficult to launch new projects.
“We are finding it difficult to launch new projects in the vicinity of the sanctuary because investors and banks are reluctant to fund such projects till there is clarity on the matter,” said Shakti Nath, managing director of the Logix group, which has put three of its mixed-use projects on the backburner due to the issue.
In October last year, the tribunal had directed the Noida Authority to stop all construction activity within 10 kilometres of the sanctuary and asked the central government to fix the rules on the distance to be kept for such developments from wildlife sanctuaries.
The Centre then asked state governments to suggest rules for sanctuaries depending on how fragile they were. In February this year, the Uttar Pradesh government sent its recommendation for deeming 100 metres as the eco-sensitive zone. “We should be given instructions about who to go to rather than dealing with multiple authorities,” said Anand of ATS Infrastructure.

30/11/2015

NOIDA: Realty firm Logix group plans to raise Rs 250 crore from foreign investors for the development of its ongoing mixed-use commercial project in Noida.
The company is developing this commercial project at an investment of Rs 1,000 crore and is looking to raise FDI to complete this project.
The 6-acre project ‘Noida City Center’ includes a 7 lakh sq ft shopping mall, 2.5 lakh sq ft office towers, two hotels with combined 400 rooms and 100 service apartments.
“Total project cost of this commercial project is Rs 1,000 crore,” Logix group CMD Shakti Nath said.
The investments are largely met through internal accruals, he said, adding that the company is in talks to raise FDI for this project.
Asked how much fund the company is looking to raise, Nath said: “We plan to raise about Rs 250 crore”.
Earlier, Logix had raised funds from Apollo, TAIB and ICICI Prudential for other projects.
Giving details about the project, he said the shopping mall would be operational in the next 4-5 months while office, hotels and service apartments would be completed in the next 2 years.
The mall would feature PVR Cinemas’ 15-screen Superplex and the first Imax of northern India. Hypermarket brand ‘HyperCITY’ will also have presence in the mall.
Noida-based Logix group has tied up with Westin Hotels for the 250-rooms 5-star hotel and Hilton Garden Inn for the 4 star hotel. The company will also have tie-up for management of its service apartments, Nath said.
Logix group has completed 4 million sq ft of IT projects. It is currently developing 3-4 residential projects in Noida with 20,000 housing units.

20/09/2015

Realty firm ATS Infrastructure has purchased 125 acres of land in Noida for about Rs 1,300 crore to develop a housing project and a cricket stadium.

The company is in the process of raising funds to meet the land acquisition cost.

"ATS have bought 125 acres of land in Sector 152 Noida from Noida Authority for about Rs 1,300 crore. We will be developing group housing project and an international cricket stadium of 50,000 seating capacity on this land," ATS Group Managing Direct ..

Read more at:
http://economictimes.indiatimes.com/articleshow/49032649.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Realty firm ATS Infrastructure has purchased 125 acres of land in Noida for about Rs 1,300 crore to develop a housing project and a cricket stadium.

20/09/2015

Realty major DLF will be opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore.

"They are already in the process of completing another mall in Delhi called the Emporio at Chanakyapuri in Central Delhi. It's a smaller mall and it should be open by next May," DLF chief executive for rental business, Sriram Khattar told PTI here over the weekend.

Besides, the Gurgaon-based developer will be opening the Rs 1,700-crore 'Mall of India' in Noida by Nove ..

Realty major DLF will be opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore.

25/01/2015

25/01/2015

NOIDA: Fed up with the poor policies, multiplicity of authorities and corruption, UP-NCR industries and real estate is riding on Modi wave. The experts believe that the stable government would rejuvenate the economy, and this will subsequently leave positive impact on the NCR market. The industries players have been advocating for a single window clearance system, transparency in government proceedings and reduced cost of borrowing from banks for many years. It is expected that implementation of proposed GST framework; tax benefits for buyers and real estate developers will percolate downwards benefitting the end buyer of affordable and mid-income projects while the consumer is expecting reduction in home loans and rationalisation in real estate pricing.
P Sahel, vice chairman, Lotus Greens Developers said Indian industries were awaiting a robust government, which will make the market viable for sellers and buyers. “The industry, for a long time has been advocating for a single window clearance system, transparency in government proceedings and reduced cost of borrowing from banks for many years. at the same time, the consumer is expecting reduction in home loans and rationalisation in real estate pricing,” Sahel said it is expected that implementation of proposed GST framework; tax benefits for buyers and real estate developers will percolate downwards benefitting the end buyer of affordable and mid-income projects. So considering all these factors, we hope the new government will surely roll out policies favouring realty sector,” Sahel said.
The experts said that positive sentiments were visible on Friday during the trend of early vote counts presented by media groups. The trends had injected a new wave in the economy and the BSE Sensex and Nifty rallied to record life highs, breaching the psychologically important mark, while the rupee strengthened high against the dollar.
“The real estate market is based on sentiment and the positive sentiment which was missing from the market again rejanuated with the Modi government. Entire industry and buyers were suffering from the slump. With the transparent policies to boost the industries and serving the common men, we are expecting good results in the couple of months. People who had put their investment on hold will hit the market for investment and I would suggest that this is the best time investment in real estate for earning handsome profit, said Amit Gupta, MD, Orris Infrastructure.
“There is need to focus attention of Government on the imperative urgency of reforming the current wasteful and dilatory process of Plan approval through multi-Agencies of Central and State Governments acting individually and adding to the time and costs of starting and completing any Urban Space Development Project. All objective Reports and studies state that the current dilatory, multi-Agency processing of Development Plans add up to 40% cost of the project,” Gupta said. “If implemented, industry can double housing stock, reduce sale prices up to 25%, increase state and central government’s revenue by 100% as well as local Municipal authority’s revenue doubles, establishment cost of government authorities at all level by 70% and increase GDP by 1.5%,” said Anil Mithas, CMD, Unnati Fortune Group.
“We are hopeful that the real estate market, which provides bread and butter to crores of people of this country would be revived soon. The positive sentiment was missing from the market, which is why some sectors were not doing well. With the functioning of the new governments, the market will witness more growth and strength. The real estate had started witnessing revival signings after four states polls outcome last year December and its a right time to buy property otherwise post elections rates would go up and put burden on the buyers pocket. We are expecting real estate full fledge revived by August this year,” said JK Jain, CMD, Designarch group.
“The UP-NCR industries were reeling under deep slump for a long time. For the last 13 years no big industry has turned up in Noida and Greater Noida due to maligned law and order and rigid policies. There is no back up for the industry, positive sentiments were missing and at the same time harassment has gone up. With the stable government, we are hoping that entire economy will revive soon and this will influence UP-NCR,” said Gaurav Kumar Bansal, social activist.

25/01/2015

Buying a house or any residential property in Noida will now be a costlier affair, as the Noida and Yamuna Expressway authorities decided to hike the land allotment rate up to 10-12% at a board meeting on Monday. “We have increased the land allotment rate up to 10% in Noida in all categories, except for commercial properties. Rates of commercial property in Noida will not be increased because we want to correct the rates.
“Land allotment rates will be hiked up to 12% in Yamuna expressway area. The rates are unchanged in Greater Noida because they saw an increase in February this year,” said Rama Raman, chairperson of Noida, Greater Noida and Yamuna Expressway authorities.
The new rates came into effect on Monday.
According to officials, land allotment rates will be increased in all categories – including residential, group housing, institutional and industrial, while commercial plots will not see any increase.
“The hike was unavoidable because of the prevailing financial circumstances,” said a senior Noida authority official.
The Noida authority had increased the rates in May, 2013, by up to 9-12 % on the previous occasion.
In Noida, the highest rate of a residential property is Rs. 62,220/square meter, and the lowest is Rs. 22,625/ square meter.
Now, after the 10% increase, buying unallotted residential plots will cost Rs. 71,553/ square meter.
The authority has decided to hike land allotment rate because plans are afoot to allot 25,00 acres of land to realtors for group housing, commercial and mixed-land use purposes from June-end.
This land was earlier earmarked for special economic zone (SEZ) purposes. But because of a land row and a long legal battle, the authority has got this plot back.
It will be the last large-scale allotment to realtors. After this round, Noida will not be left with any land for further allotment.
“This 2,500 acres of prime land located along Noida Expressway in sectors 144 and 145, among others, is remaining land parcel. Therefore, we urgently needed to hike allotment rate. Once 2500 acres is allotted, Noida will not have any land to allot in future,” said an official.