REAL ESTATE
 


Perfect plot
The urban landscape may be in the midst of the gravity-defying ascent with high-rise housing and office complexes dotting city skylines all over the country, but the allure of a piece of land, which one can call one's own exclusively, has always had a special place in the hearts of realty investors. The apartment culture, no doubt, is slowly taking root in the Punjab and Haryana region, but any scheme offering plots is lapped up like the proverbial hot cakes here. Be it the whopping over three lakh applications for 4,000 plots in GMADA's Aerocity project last year, or a "clean sweep" of plots in DLF's project in Mullanpur, near Chandigarh, a few months back, plotted developments seem to be a favourite with the developers as well as the buyers in the region.

Tax tips
Calculating service tax
Quest for the right VALUE
Should I file Wealth Tax Return?
Pay advance tax
Authenticity of Will

REALTY GUIDE
Industrial assets
Property share

Transparent transactions
A large number of reports have been published about home buyers being cheated as the builder did not have a clear title to property or had not obtained the relevant statutory approvals for development.

Residential rentals move up in Delhi-NCR
align="left"> A study by 99acres.com, India’s no 1 real estate portal showed that rentals for the Delhi and NCR region have seen an appreciation if rents of a 3BHK residential apartment in Q2-11(April-May-June 2011) is compared with that in Q2-10. Though the rate of appreciation differs according to localities, there are enough localities which have witnessed double digit growths.

REALTY Bytes
Godrej Prop to spend Rs 138.7 cr on projects
Real estate firm Godrej Properties claims to have earmarked Rs 138.7 crore to be utilised in land acquisition, construction of projects and loan repayment during this fiscal. In a filing to the Bombay Stock Exchange (BSE), the Godrej group firm said while Rs 75 crore would be utilised in acquiring land, Rs 12.70 crore would be spent on construction of its forthcoming projects. The balance Rs 51 crore would be utilised for the repayment of loans.

Clarification
The name of H&R Johnson group was erroneously mentioned as Johnson and Johnson in the article on germ-free tiles ('Hail Hygiene') published in August 20, 2011 issue of the Real Estate. The error is regretted.






 

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Perfect plot
Geetu Vaid

The urban landscape may be in the midst of the gravity-defying ascent with high-rise housing and office complexes dotting city skylines all over the country, but the allure of a piece of land, which one can call one's own exclusively, has always had a special place in the hearts of realty investors. The apartment culture, no doubt, is slowly taking root in the Punjab and Haryana region, but any scheme offering plots is lapped up like the proverbial hot cakes here. Be it the whopping over three lakh applications for 4,000 plots in GMADA's Aerocity project last year, or a "clean sweep" of plots in DLF's project in Mullanpur, near Chandigarh, a few months back, plotted developments seem to be a favourite with the developers as well as the buyers in the region. GMADA's latest offering in Mullanpur Urban Estate, which is set to roll out in a few days' time, is also expected to be a major hit with the investors and end users alike.

The government bodies as well as the private builders seem to be keen on cashing in on the buyers' preference for plots. While the Omaxe group has already sold out all of the plots in its Chandigarh Extension project in Mullanpur, other national level players like Emaar MGF, TDI, Unitech etc also have a sizeable number of plots on offer in their respective integrated city projects in the Mohali area. Apart from this, local developers, too, are on the bandwagon with projects lined up in areas in Baddi, Kharar, Zirakpur, and Dera Bassi in the tricity region. Ludhiana, Amritsar, Bathinda, Karnal, Saharanpur are the other locations where developers like Ireo, CHD Group, Paramount etc are offering plotted developments.

Signs of a shift?

“More and more developers are now focussing on offering plots since there is a huge demand from the buyers”, says Manu Garg, Director, Landcraft Developers. So can we deduce that there is a shift in developers' focus now from building high-rise residential units to offering plots? "Actually one can't call it shifting focus from apartments to plots, as it's a different ball game. Target customers for plots and apartments are completely different. Mostly people from Tier II and III cities are the traditional buyers' who prefer plots over apartments. They want independent houses and to build their homes according to their need and taste. Apart from metros and Tier I cities, people by and large India have not accepted apartment living and no matter how big an apartment you give them, many of them would still want a plot", says Sumit Bansal, Joint, MD, Innovative Infra Developers. "By launching plotted projects, we have given more flexibility to the customer to choose between mix of plots, apartments and villa as per their requirement. There is purely a demand-supply perspective" adds Bansal.

However, Tier II and III cities are not the only locations where this trend is thriving, neighbourhoods of metros and Tier I cities all over the country have also seen a number of such developments. DLF, the country's largest developer, recently put over 400 plots on offer in Sector 91 in Gurgaon. Apart from it TDI, Alpha G. Corp, Supertech are among some of the groups that are offering plots along with apartments in their projects in the NCR region. Though investing in land has always been considered a wise investment, the shift now is in the buyers' preference for plots in integrated township projects. "As the developers offer complete infrastructure, including roads, water, electricity, and sewerage along with provision for clubs, schools, shopping areas and sports facilities, the buyers get a complete package along with the freedom to construct as per their taste or sell it freely", says Sanyam Dudeja, COO, TDI (Punjab).

Lucrative option

The realty sector is in the midst of a rough patch due to the heavy debt load on most of the major players in the sector, rising construction costs and a slew of rulings related to land acquisition. All this has given an added momentum to the trend of marketing plotted developments. For developers it is a profitable option as they can pocket gains without having to battle delivery deadlines and uncertainties of the market and generate revenue for use in other projects.

For investors and end users, too, it is a win-win proposition as the value of land is bound to appreciate with time and they have the freedom to construct as per their need and taste. "Plots have better chances of giving good returns than apartments. But everything depends on the investment time horizon. In a market, where the material prices are increasing rapidly, investing in an apartment gives better returns in the short run. However, in the longer run, the land is an ever-appreciating asset while buildings are generally depreciating assets. Hence if people are investing for long term, plots will handily beat investment in apartments. Try looking at the value of apartments that are 15 to 20 years old, most of the value of the apartment is due to the increase in the value of the land", says Bansal. “In the past one year the prices have almost doubled in the region which shows how lucrative this investment is”,says Rajiv Gupta, General Manager, Punjab and International sales, Emaar MGF Land Ltd. The main benefit of investing in plots is the low delivery risk. Unlike in the case of apartment blocks, plot buyers are not dependent on the developers for delivery. A developer will just have to provide infrastructure for a plot. "Land is an appreciating asset and the owner has redevelopment rights. On the other hand, in most group housing projects, apartment owners do not have this kind of right", says Bansal.

"Suburbs and 'leapfrog locations' are ideal for those looking to get good returns from investments but at the same time the investors should thoroughly study the development potential of an area along with the fact that the developer has completed proper documentation, got all clearances, licenses etc. Another important factor to be considered is the amount of different charges like EDC, PLC etc and mode of payment to avoid 'price shock' at a later date.

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Tax tips
S. C. Vasudeva

Calculating service tax

Q. I would like to know the service tax rate applicable on the purchase of a flat and the time it is applicable from? Is it also applicable on preferential location charges and other charges such as the ones for car parking, power back up etc? If yes, then at what rate? Please clarify other things also which a consumer must know on the above subject.

— Avdesh Tiwari

A.Your queries are replied hereunder:

  • The rate of service tax is 10.3 per cent.
  • Service tax on any service provided or to be provided to any person by or another person in relation to the construction of residential complex became effective from June 16, 2005.
  • It is also applicable on service for providing preferential location or for the development of complex (except service in relation to parking space). The rate of tax on such service would remain the same.
  • The following issues should be kept in view for the purposes of chargeability of service tax in such cases.

Residential Complex

"Residential complex" means any complex comprising:

  • a building or buildings having more than 12 residential units
  • a common area and
  • any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout and the construction of such complex is intended for personal use as residence by such person

Personal use and a residential unit have been defined as under:

"personal use" includes permitting the complex for use as residence by another person on rent or without consideration;

"residential unit" means a single house or a single apartment intended for use as a place of residence".

Services liable to tax

  • Construction of new residential complex or a part thereof; or
  • Completion and finishing services in relation to residential complex (new or old) such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery, carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services.
  • Repair, alteration, renovation or restoration of or similar services in relation to, "residential complex".

The department has clarified that such services provided in relation to residential complexes which are in existence prior to June 16, 2005 would also attract tax.

Quest for the right VALUE

Q. I am the owner of a piece of urban land which is situated within the city and has considerable value. I have filed Wealth Tax Return on the basis of Registered Valuer's report. However, the Wealth Tax Officer is insisting that he will have to make a reference to the Department's Valuation Officer for the purposes of determining the value of such land. Is it possible for him to ignore the valuation report of the Registered Valuer and refer the valuation to Department's Valuation Officer?

— Som Dutt

A. In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets which are includible in the wealth for the purpose of the levy of the Wealth Tax is to be determined in accordance with Section 7 read with Schedule III to the said Act. Schedule III does not prescribe any method of valuation in respect of the urban land. In the residuary clause of Schedule III, it has however, been provided that the value of any asset other than cash being an asset which is not covered by Rules 3 to 19, shall be estimated to be the price (in the opinion of the Assessing Officer) that it would fetch if sold in the open market on the valuation date. The said Act also provides where valuation of any asset is referred by the Assessing Officer to a Valuation Officer, the value of the asset shall be that which is determined by the Valuation Officer to whom reference has been made by the Assessing Officer.

In view of the above provisions read with Circular No. 96 (dated 25.11.1972) issued by the department, it is the Assessing Officer who has to determine the value of an asset for which specific provisions of the schedule III are not applicable. Section 16A of the aforesaid Act provides that where Assessing Officer is of the opinion that the value determined by the Registered Valuer is less than the fair market value, he may refer the matter relating to such valuation to the Valuation Officer. In my opinion therefore, the Assessing Officer can make a reference to the Valuation Officer in case he is not satisfied with the valuation made by the Registered Valuer.

Should I file Wealth Tax Return?

Q. I recently constructed a commercial complex in Faridabad a part of which has been let out to various tenants. The other part has been sold. I have been advised that the let out building is subject to Wealth Tax and I am supposed to file the Wealth Tax return. Is the information given to me correct?

— Sunil Kumar

A. Wealth Tax is leviable in respect of the net wealth on the valuation date of every individual, HUF and company at the rate of 1 per cent of the amount by which the net wealth exceeds Rs 30,00,000. However, such net wealth is to be computed after considering the value of those assets which are specified in clause (ea) of Section 2 of the Wealth Tax Act, 1957. One of the items covered in the said clause is any building or land appurtenant thereto whether used for residential or commercial purpose. An exception to this item is any property in the nature of "commercial establishments or complexes". In my opinion a commercial complex constructed by you would not be exigible to Wealth Tax in view of the above exclusion, this being a property in the nature of "commercial establishments or complexes". Therefore, if you do not have other assets which are includible for Wealth Tax purposes as specified in clause (ea) of Section 2 of the Wealth Tax Act, 1957, there should not be any necessity for you to file a Wealth Tax Return.

Pay advance tax

Q. I purchased a 25-marla plot in June 1992, for a sum Rs 48 lakh (including the stamp duty). In October 2003 I sold 5-marla portion from the said plot for Rs 14 lakh and the balance of 20 marlas were sold in April 2011, for Rs 1.10 crore. Due to oversight no capital gains tax was paid on the sale consideration got fom selling 5 marlas in October 2003, is there any way now to pay the capital gain on that amount of Rs 14 lakh? Otherwise what remedial measures can be taken to correct the oversight? The property is commercial in nature and would you recommen paying advance tax on the April 2011 disposal.

— Sabina Gill

A. Your queries are replied hereunder:

  • The assessment for the assessment year 2004-05 (financial year ending 31.03.2004) could have been reopened by March 31, 2011 in accordance with the provisions of the Income-tax Act, 1961(The Act). In view thereof, it may not be possible for the tax authorities to recover tax in respect of the capital gain arising on the sale of 5 marlas in October, 2003.
  • You are liable to pay advance tax in respect of the tax chargeable on capital gain arising on the sale of 20 marlas of land.

Authenticity of Will

Q. My question is regarding the validity of a registered Will and the extent of its applicability. My late wife left a Will in my favour, which was registered. On its basis the assets, including land and company shares, were transferred in my name. But Mohan Meakin Breweies, Solan, is refusing to entertain the will to transfer its 100 shares of face value Rs 500, which stand in the name of my wife, in my name. The company is not giving any reason for the same. They just ask for probate of the Will. Are they right in refusing to entertain a genuine Will duly registered? The matter has been pending for the past more than 20 years.

— Pritam Pal Madan

A. A registered Will is valid and due cognizance has to be given to such a document by various authorities. However, companies generally insist for a probate in view of the requirements contained in their Articles of Association. You may seek an inspection of the Articles of Association at Registrar's office to ascertain the correct position in this regard. In case the Articles of Association so require, you will have to approach the court for getting the Will probated. Once the probate is obtained, the company would not be able to refuse the transmission of shares in your name.

The writer can be contacted at sc@scvasudeva.com

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REALTY GUIDE
B K Sanghi

Industrial assets

Q. I would like to have your advice on an industrial property belonging to my father in Industrial Area, Mohali, Phase-7.

We have a one kanal (525 sq yd) corner industrial plot in Phase-7 Mohali. It had been allotted to us two-and-a-half years back by PUDA. Sir, I want to know the future prospects of this property in view of the following facts:

  • The government will start charging penalty from the fourth year onwards if a project is not started within three years (3 years will complete in July 2012) of the allotment of the plot. We don't wish to start any project in the next two years.
  • We are getting around Rs 85 lakh for the plot if we sell it now.
  • But if we sell the plot now then it will be termed as short term capital gain and tax liability will be higher.
  • GMADA offering us to buy some free space adjoining the plot at Rs 10,000 per sq. yd. if required.

Now you please advise us how we can move ahead in this case. Are prices going to increase substantially in this area in the next few years?

Should I invest in some other property after selling this?

How we can save tax on the short term capital gain in case we sell the plot now?

Also tell us what will be the right price for selling property today?

— Harinder Singh, Jalandhar

A. Property, especially commercial property, is passing through a "correctional phase" in the tricity (Chandigarh, Mohali and Panchkula) at present. Phase VII of Mohali is a prime location and the future prospects seem to be very bright for appreciation of land prices. At least till July 2012, till the time there is no penalty you should hold on the property to get a better deal.

In the current scenario of flux in prices, it is very difficult to predict the market rate as it depends on a number of factors like cash component in the deal, time taken by the party for payment and the need of the intending buyer. However, the price at the current rates should be in the range of Rs 1 crore to Rs 1.25 crore.

Beware of unscrupulous property consultants who book a property and then try to pass it on to intending buyers. Look for a genuine direct deal.

The need to saving tax on STCG will arise only after you sell the property.

Property share

Q. One of my friends’ father died without leaving any Will. His father had a one kanal house in Ludhiana. My friend is living in that house. He has two sisters and no brother. As one of his sister is not interested in claiming any share from the property, his other sister wants the property to be divided between the two of them so that she gets half of it. Is it a legal demand?

— Vijay Sharma

A. When a Hindu male dies intestate his property devolves around his legal heirs. Section 10 of the Hindu Succession Act, 1956 gives in detail the list of Class I heirs who are going to be given first preference while dividing the property of the deceased. Rule 1 of this Section provides for a share of property for the widow of the deceased. Rule 2 of this Section provides for a share each for the surviving sons and daughters and the mother of the deceased.

In your case though it is not clear whether the deceased has a surviving widow and mother .But in case there are only two surviving daughters and a son each one will get a share each i.e. 1/3rd of the undivided share in the property. In case one of the sisters of your friend is willing to relinquish her share in favour of the other sister, she can do so by executing a relinquishment deed in her favour.

However, since your friend is living in that residencial house, which is occupied by your friend and other members of the family, then under Section 23 of the Hindu Succession Act, 1956, his sisters cannot claim partition of the said house till the son (i.e. your friend) chooses to divide the respective shares in the said house.

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Transparent transactions
S.C. Dhall

A large number of reports have been published about home buyers being cheated as the builder did not have a clear title to property or had not obtained the relevant statutory approvals for development.

The main reason for this state of affairs is the largely unregulated nature of the real estate sector in India. Often, buyers do not conduct necessary checks or pay attention to the builder agreement details. Even if they do and ask builders to modify unfavourable terms, the latter use their dominant position and are able to have their way by citing "standardisation of agreements" for all buyers.

The Competition Commission of India (CCI's) recent ruling against the DLF group on which it slapped a penalty of 630 crore for abusing its dominant market position on a complaint by 'The Belaire' association in Gurgaon, has opened the floodgates for similar complaints against errant builders.

Here are some important aspects that buyers should look into before signing the agreement:

Clear title

Home buyers should ask for and check certified copies of the title deeds to the property on which the building is being constructed. This is to ensure that the builder's right to sell the property is clear and free from legal claims. Buyers should ideally get these documents examined by someone well versed in law.

Encumbrance certificate

Encumbrance certificates for the last few years, including the latest certificate for the property, should also be inspected. This is to ensure that previous transfers have been in order, the builder is an authorised transferror, and to ascertain whether there are any loans or mortgages on the property.

Proper approvals

Buyers should inspect whether proper approvals for development on the property and for the building plans have been obtained. An important document in this regard is the plan approval from the relevant governing authorities.

Plans and layouts

Copies of the construction plans and layouts of the project, buildings, floors and individual houses will help in buyers assessing the property, and also whether it matches with the approval granted by the authorities. This will also come in handy for buyers on a later date if the actual construction is not as per the original plan.

Built-up area and carpet area

An important aspect is the difference between the area mentioned in the agreement and the actual living space which would finally be available. Agreements usually state the super built-up area which includes proportionate share of common spaces such as staircases, lifts, building lobbies, etc. The carpet area which is the actual living space available could be around 20-35 per cent lower (known in industry parlance as loading) than what is mentioned in the agreement. Higher the loading, lower the actual living space.

Penalty for delays

Check for clauses which provide for penalties in case of payment delay by the buyer, and also in handing over possession by the builder. Generally, buyers are heavily penalised for payment delays and charged interest at around 18 to 24 per cent per annum. Also forfeiture in case of default beyond a certain period could be between 15 to 20 per cent of the total sale consideration. On the other hand, penalty for delays by the builder are relatively much lighter, attracting charges of around Rs 5-7 per sq ft per month of delay, after providing for a grace period. Though the quantum of penalty may not be adequate compensation for the buyer, such a clause could cut losses for the buyer and at the same time incentivise the builder to stick to schedule.

Early exit charges

Buyers should also check for penalties in case they wish to terminate the agreement. Forfeiture charges in such cases could be quite high ranging from 15 to 20 per cent of the total sale consideration. Also, the builder may not return the balance immediately and may do so only after re-sale of the house to a third party.

Tax liabilities

Check whether the agreement clearly lays out the obligations of the builder and the buyer regarding the payment of various charges and tax obligations, and the periods from which they apply. Ambiguities in this regard could be a drain on the buyer's pockets.

Preferential location charges

Such charges could include floor-rise charges (extra cost for apartments on higher floors) or additional payment for apartments with preferred views. Buyers should confirm that the agreement clearly mentions any such extra charges, so that they are not caught unawares later.

In addition to the above, buyers should also check that the amount of advance collected is not unreasonably high, and confirm that the facilities sought to be provided in the agreement match those originally promised by the builder. Also, check for other clauses, including maintenance charges to be borne by the buyer, and the period from which these become applicable.

Check how the undivided share of land (UDS) has been apportioned among buyers and conditions regarding the same. A higher number of units constructed than approved will reduce the UDS for each unit.

It is also a good idea to see whether banks have appraised the project for giving loans. Though not a substitute for buyers conducting their own checks, this could provide an additional level of comfort about the veracity of the builder's documentation.

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Residential rentals move up in Delhi-NCR

A study by 99acres.com, India’s no 1 real estate portal showed that rentals for the Delhi and NCR region have seen an appreciation if rents of a 3BHK residential apartment in Q2-11(April-May-June 2011) is compared with that in Q2-10. Though the rate of appreciation differs according to localities, there are enough localities which have witnessed double digit growths.

Commenting on the same Vineet Singh, Business Head, 99acres.com said “As far as rental trends for Delhi are concerned, the market will continue to see an upward movement. Although the Indian economy is still growing at a healthy pace, the jittery global markets may see some slowdown effect on the Indian market as well. Coupled with the already slow new project market and delayed construction of ongoing projects means that rentals will continue to escalate.”

A look at the rental prices of a 3BHK house in key localities of South Delhi and Dwarka shows that the residential areas of Kalkaji and Sector 6 Dwarka witnessed maximum appreciation. Both these areas have respectively witnessed 13 per cent rise in rentals in Q2-11 over Q2-10. Other important localities of South Delhi like Greater Kailash, Saket and Malviya Nagar saw rentals appreciate by 9, 7 and 6 per cent, respectively. The rentals in the Dwarka region have appreciated by 9 per cent over a period of one year with Sector 12, 18 and 4 witnessing a 10 per cent rise in rentals in Q2-11 over Q2-10.

Other important residential localities of Delhi like Rohini in the North and Mayur Vihar in the East also saw escalations in rentals by 26 and 13 per cent, respectively in Q2-11 over Q2-10. IP extension in East Delhi saw steady rentals while Janakpuri saw 4% appreciation in rentals in Q2-11 over Q2-10.

Most of the localities of the Noida and Ghaziabad region have seen double digit appreciation in rentals. Key areas of Noida like Sector 62, Sector 61, Sector 93, and Sector 82 have seen rentals escalating within the range of 14 to 26 per cent over a period of one year. In Ghaziabad area, Vaishali saw maximum appreciation with 19 per cent rise in rentals in Q2-11 over Q2-10.

All important localities of Gurgaon saw double digit rental growth. Important residential localities like Sector 56, Nirvana Country and Sohna Road saw 19, 15 and 13 per cent rise in their rentals in Q2-11 as compared to Q2-10. Both Sector 52 and Sushant Lok witnessed 14 per cent rise in rentals over the same time period.

Therefore, while Delhi has witnessed a substantial appreciation in rentals, the NCR region (Gurgaon and Noida) has seen far higher growth. On a national level, when we look at rentals across the other important cities of the country, then residential rentals in Mumbai moved up by 9 per cent, Delhi by 11 per cent, and Pune saw flat residential rental rates.

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REALTY Bytes
Godrej Prop to spend Rs 138.7 cr on projects

Real estate firm Godrej Properties claims to have earmarked Rs 138.7 crore to be utilised in land acquisition, construction of projects and loan repayment during this fiscal. In a filing to the Bombay Stock Exchange (BSE), the Godrej group firm said while Rs 75 crore would be utilised in acquiring land, Rs 12.70 crore would be spent on construction of its forthcoming projects. The balance Rs 51 crore would be utilised for the repayment of loans.

The company also said it is in advanced stages of several new joint venture projects and has already lined up new projects to be launched in Mumbai, Bangalore, Hyderabad, Chennai and Kochi during the year.

"We are in advanced discussions for several new joint venture projects and are planning new launches in Mumbai, Bangalore, Hyderabad, Chennai and Kochi," Godrej Group Chairman Adi Godrej said at the company's annual general meeting. During the year, the company has also entered into the National Capital Region (NCR) through a resident joint venture project for 1 million sq ft in Gurgaon. "This year also saw extremely strong progress in attracting new customers with Godrej Properties selling 3.2 million sq ft more than those sold in the previous year," he said.

Apart from the NCR, the company has also launched projects in Chennai and Mangalore and increased its area under construction. Besides, it has signed up three new joint venture projects in Mumbai and Hyderabad. "We have also launched our first project in Vikhroli, 2.8 million sq ft mixed use development named 'The Tress' that will house the headquarters for many Godrej Group companies and will also have residential, retail, office and hospitality spaces," Godrej said.

India Infrastructure Summit

Meinhardt Group, a global integrated engineering consulting firm, will partner with FICCI for the upcoming third edition of the India Infrastructure Summit-2011. The theme of this year's summit to be held on September 15, 2011 at Hotel Imperial, Janpath, is 'Achieving the trillion dollar dream'.

The summit will be one of the largest platforms to engage with the fastest growing sector in the country providing a forum for global infrastructure players to tap the emerging opportunities in the sector, and for Indian stakeholders to interface with their global counterparts. It will be a platform for knowledge sharing and showcasing India's pace in the development of the sector and a medium for deliberation and discussion on various policy matters. Rajesh Srivastava, Managing Director, Meinhardt-India said, "The summit will act as a platform for the company to learn about various opportunities and challenges in the Indian Infrastructure sector."

In the last two years the summit has provided a significant platform to showcase the needs of the infrastructure sector in the country. It has played a role of catalyst between the industry and the Government of India, enabling the announcement of several policy decisions and also facilitating development of business.

The summit mainly aims to deliberate upon the procedural constraints faced by the infrastructure sector which impacts the ability to implement the infrastructure projects and the requisite strategies and approach to ensure the enormous participation of this sector in the development of the country. Over 300 developers, investors, Government officials & Industry experts would be part of this largest event in the Indian infrastructure sector.

Big-ticket deals

Real estate giant DLF will be finalising at least two big-ticket deals for the sale of non-core assets this quarter and expressed confidence that the company will achieve the target of raising Rs 7,000 crore in the next two-three years through divestment.

Although DLF did not disclose the size of the two likely deals, sources said that it could be around Rs 1,500 crore. In a conference call to analysts, DLF Executive Director (Finance) Saurav Chawla said: "We are now in the advanced stage of finalising at least two deals out of four transactions. We should close two deals within this quarter and some would flow in October".

The proceeds from the sale of non-core assets, being described as those lands where the company does not intend to launch projects in the next two to three years, would go towards reducing debt that stood at Rs 21,524 crore as on June 30, 2011.

Chawla said the company had identified more non-core assets for sale, where it is open for joint ventures, foreign investment as well as total sell-out.

"We have adequate pipeline for future monetisation of certain projects," he said, adding that the divestment target of Rs 6,000-7,000 crore in the next two-three years would be met. DLF, the country's largest real estate firm, has so far realised a little over Rs 3,200 crore from the sale of such assets that include hotel plots. — Agencies

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