CRISIL launches Gold Index

CRISIL Research, India’s largest independent and integrated research house, announced the launch of the CRISIL Gold Index.

The CRISIL Gold index will track the performance of gold prices in the domestic market. The objective of CRISIL Gold index is to provide an independent and relevant benchmark for performance evaluation of investment products with gold as underlying investment. This is the first index introduced by CRISIL in the commodities space and the ninth overall.

Mr. Mukesh Agarwal, Senior Director, CRISIL Research said “Gold is considered to be one of the safest havens for investments. Typically, during uncertain times, gold acts as an effective hedge.” The strong performance by gold has also coincided with the introduction of Gold ETFs (Gold Exchange Traded Funds ) and Gold FoFs (Gold Fund of Funds ) in India. The objective of these funds is to provide returns that closely correspond to the returns delivered by gold as an asset class.When compared with holding physical gold, gold ETFs provide investors with various benefits like affordability, guaranteed purity, high liquidity, transparent pricing and low holding cost. These benefits along with the tax advantage make gold ETFs a more efficient way of owning gold""

First Gold ETF in the country was launched in 2007 March . The average AUM (Assets Under Management ) under this category have grown exponentially from Rs.96 crore billion in March 2007 to Rs. 6000 crore as on June 2011. Now, about  12 asset management companies offer 12 Gold ETFs and 4 Gold FoFs in India.  Globally, AUM of Gold ETFs has grown over USD 100 bn as on June 2011 as against USD 14 bn in April 2007.

Since the global credit crisis of  2008, gold has been consistently outperforming the equity market and eliciting enhanced investor interest. Between August 2008 and July 2011, gold has given an annualized return of 22.91% compared to 9.3% by S&P CNX Nifty.

The methodology for the CRISIL Gold Index and the daily index values are available on www.crisil.com

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Financial inclusion mandatory for new banks, says RBI

Indian Industrial houses and companies seeking banking licences will have their work cut out, as the Reserve Bank of India (RBI) has mandated new banks to open a fourth of their branches in unbanked rural centres.

While a recent circular issued by the central bank directed existing banks to open 25 per cent of their new branches in rural areas, industry analysts said the task would be more challenging for the new entrants and the time taken for them to turn profitable may be extended.
“Generating business from branches in unbanked areas may be a challenge for new banks. They would have to work out cost-effective ways to open branches in rural areas,” said a senior official of a large Mumbai-based public sector bank.

The new banks may opt to offer basic banking services in rural areas, at least in the initial period, to keep their costs low, even as they have to provide full-banking services in metros and urban centres because of competition, he said.

In its draft guidelines on new bank licensing, RBI said business models for new banks must include their financial inclusion plans. The models should be “realistic and viable” and any deviation from the stated plan after securing the licence would attract penalties like restriction in the banks’ expansion programmes or a change in management.

According to the draft norms, new banks would have to open 25 per cent of their branches in unbanked areas with a population of up to 9,999, according to the 2001 census. This would avoid over-concentration of their branches in cities, which already have adequate banking presence.

“The proposal to set up 25 per cent of branches in rural centres appears challenging. But if we look at other emerging markets and African countries, this model has been implemented through product innovation and the use of technology. So, even if it looks difficult, it is not impossible. If it is done properly, it would supplement the balance sheet strength of new banks,” said Viren H Mehta, director, Ernst & Young.

The new banks have to invest in ensuring connectivity between the urban and rural branches, since they have to operate on the core banking solution (CBS) platform from the beginning. Bankers said existing lenders currently use CBS or VSAT in areas where there are connectivity concerns. RBI also said the new banks should comply with priority sector lending targets and sub-targets that are applicable to existing domestic banks.

Source: BS
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What is Tripartite Agreement Means?

In Indian real estate sector recently used many people,  the word, 'tripartite agreement'

What is meant by  tripartite agreement

It is an agreement signed by three parties--
The Buyer,
The Bank
The Builder.
The agreement contains all relevant information, such as the specifics of the property, carpet area (the actual living space that you get) and the amount of loan the bank has provided to the customer. It also mentions the possession date and specifies the penalty clause and its rate, if any. It lists out the obligations of all the 3 parties involved. Banks usually lend against a security, in this case the flat. However, since the flat is not in customer name until possession, the builder gets involved in the agreement with the bank.

Any property agreement mentions the specifics of a particular flat, apart from other details. When any one shift to another project, that person book a new flat with different specifics and details. The loan amount for the new apartment may also vary in keeping with the area specifics of the new flat. Hence, the earlier agreement needs to change even if the builder and the bank you approach are the same.

The new agreement will include the specifics of the new flats and the details of the new loan, apart from other information. But before the new agreement is finalized, any one  would have to go through a flurry of paperwork. Any one would have to get the loan approved once again since the bank will do its due diligence on the title of the property and even reevaluate the loan amount to be sanctioned in keeping with the size of the new flat. This would mean you collect all the documents, such as bank statements for the last six months, income proof and income-tax returns, any one submitted to get the first loan sanctioned and also pay a processng fee afresh.

In the wake of the recent land acquisition controversy in Noida Extension area, some builders gave homebuyers the option to shift to another project it was developing. Buyers who agreed to shift had to sign the property agreement afresh and get a loan sanctioned all over again before getting into the new agreement.
Usually, for flats taken on loan, there is a tripartite agreement involved.
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India's Steel imports at Rs 26,387 crore in 2010-11

India's imported finished steel products worth Rs 26,387 crore in 2010-11, a 3% rise in comparison to 2009-10, Parliament was informed.

The country had imported finished steel worth Rs 25,623 crore in 2009-10, Steel minister Beni Prasad Verma said in a written reply to a question in the Lok Sabha.

Steel imports were the highest in 2008-09, at Rs 30,714 crore, he said, quoting JPC (Joint Plant Committee ) data.

In volume terms, India's imports during 2008-09, 2009-10 and 2010-11 stood at 5.84 metric tonne, 7.38 metric tonne and 6.8 metric tonne, respectively.

On the other hand, the country exported 4.44 metric tonne steel in 2008-09, 3.25 metric tonne in 2009-10 and 3.46 metric tonne in 2010-11.

Production of steel during the last three years, starting from 2008-09, amounted to 57.16 metric tonne, 60.62 metric tonne and 66.01 metric tonne.

India produced 17.05 metric tonne of finished steel during the April-June period of the current 2011-12  fiscal.
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Widening demand and supply gap hits real estate projects

According to realty research firm, PropEquity., The widening gap between demand and supply of apartments has put the brakes on the launch of new housing projects around the country-home project launches across top eight cities have dropped 31% since the September-December 2010 quarter,

Across cities, the overall number of housing projects being launched has dropped significantly. In the September-December 2010 quarter, 128,405 units were launched while in the April-June 2011 quarter this figure was down to 75,239 units.

In the last three quarters, the share of plotted developments in the overall number of project launches has gone up from 4 to 12%.

In its analyst presentation in May, India's largest real estate firm DLF had said that it would focus on selling plots to reduce execution risks that come with developing group housing projects. In 2011, June, the company launched a about 100 acre integrated township Garden City in Gurgaon where it sold 400 plots, raising Rs 700 crore in just one day.
A number of developers today do not want to invest money at this point of time but want quick returns that plotted developments offer. In the last few months, companies like DLF, Omaxe, BPTP, Logix, Supertech and others have launched new projects selling plots.

At the moment, over 50% of projects for Omaxe are plotted developments. "Of the 26 lakh sq. ft that we sold in the last quarter, about 17 lakh sq. ft was in plots," says Sumit Arora, V.P, investor & strategic relations at Omaxe.
Developers say that sales of plots are still robust in the country, especially in the north as investors feel this is a safer bet in today's environment.
Such a plotted development also protects companies from inflationary pressures as they are not require to buy large quantities of cement and steel that are required for group housing projects. A typical group housing project takes 24-36 months for completion compared to 12-18 months for projects selling plots.
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IDFC mulls acquisition of DLF's stake in Noida IT park

Infrastructure Development Finance Company (IDFC) said it was in talks to buy the entire stake of the country's largest real estate player DLF in an IT park in Noida in Uttar Pradesh.

IDFC said in a filing to the Bombay Stock Exchange (BSE), "IDFC is in talks with DLF for a business proposal,"  Report that stated it is in talks with the realty major to buy its entire 70 per cent stake in a IT park in Noida.

The company said it evaluated opportunities for loan and investments in infrastructure projects from time to time as part of its normal business and opportunities "might or might not lead to any deal as aforesaid".

In a separate filing to BSE, DLF said: "...The asset [IT Park, Noida] is held in a joint venture company through a wholly-owned subsidiary of the company. The subsidiary is exploring various strategic options, including the sale of its holding in the joint venture company."

DLF had earlier announced plans to raise up to Rs 7,000 crore in the next 2-3 years from sale of non-core assets to cut its net debt that stood at whopping Rs 21,524 crore as on 2011, June 30.
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Indian cement companies under Competition Commission lens

Probe by Competition Commission of India (CCI http://www.cci.gov.in/) director-general finds most of them guilty of cutting production to raise price, reports Jharna Mazumdar
DG-level probe finds these firms guilty of cartelisation over 4 years

IN A crackdown on cartelisation of cement manufacturers, Competition Commission of India's director general has conducted a detailed investigation on over 25 companies, including leading players such as ACC, Ambuja Cement and UltraTech.

The report submitted to the CCI chairman HC Gupta has held most of the companies guilty of cutting production to raise cement price.

CCI is now seeking a response from these companies on the DG report.

CCI Chairman Mr. HC Gupta said that the director general investigated the matter for the past six to eight months, and that a detailed report is ready. “We are sending letters to the companies in next 10 days, in which we will attach the report submitted by the DG, and seek responses from these companies,“ said Gupta.

A week ago, CCI had sent letters to all these companies, but withdrew them, citing some errors.

The companies will be given three to 4 weeks time to submit their responses or explain their stand to the commission, Gupta said.

Minimum 25 cement companies were found guilty of cartelisation for the four years under assessment between 2007 and 2011.

one official said, “ACC, UltraTech, JP Associates, Ambuja, Lafarge and many other companies have been found guilty under Section 3 of the Competition Act, and were named in the report"

 Section 3 of the Act refers to cartel and anti competitive acts.

He also said the investigation was initiated on the basis of 2 complaints ­ one filed by the Builders' Association of India and the other, transferred from Monopolies and Restrictive Trade Practices Commission (MRTPC).


A spokesperson from Ambuja said, “We have got a letter from CCI and are going through it..“

An Aditya Birla Group associate said, “A letter was sent to us, but that has been withdrawn. Only after we get the new letter, we can comment on it.

Group executive president Pragnya Ram claimed that “the company has not done any cartelisation to inflate cement prices.“

Cement analysts said if the companies are found guilty, they would have to pay a significant fine. Independent analyst SP Tulsian said, “If proved guilty, the fine on cement companies can be between Rs. 100 crore to Rs. 1,500 crore, depending on the turnover and production capacity.“

Mr.Rajesh Kumar Ravi, Analyst, Karvy Stock Broking, said ''The present utilisation capacity of cement companies varies from 50 to 70%. The companies have brought down production as demand fell significantly due to the slow down in the realty sector."
 Demand started slowing down since June 2010 after several scams were unearthed in the realty sector.
Already, profits of cement companies had declined significantly compared with the past three years and by maintaining a production discipline, they were trying to save themselves from incurring huge losses, Ravi pointed out.

Due to the decline in demand, the companies failed to pass on the rise in input cost and were left with no other option except for production discipline, he added.

A Crisil Research report on cement sector said it expects profitability of cement firms to decline to its lowest level in the past 10 years by 2012-13. A huge demand supply imbalance, fuelled by supply glut, will drive prof itability down for cement firms. The supply glut will slacken cement manufacturers' operating rates, restricting their ability to pass on a sharp rise in power and fuel costs to consumers, it said. The report said over the next two years, while cement capacities will rise by 60 mil lion tonnes per annum (MTPA), demand will in crease by a mere 30 MTPA.

Operating rates of cement manufacturers will, there fore, plunge to around 72% per cent in 2012-13 from an al ready subdued 78% in 2010-11.

Cost of power and fuel, a major input for cement, will increase by around 18 per cent in 2011-12, given the steep increase in coal prices by the industry's dominant supplier, Coal India. In addiBloomberg tion, an increase in effective excise duty rates will lower net price realisations of ce ment manufacturers by 2-4 per cent.

“The magnitude of the demand-supply imbalance and cost escalation will halve the cement industry's operating profit (Ebitda) margins from 20% per cent at present to around 10 per cent in 2012-13 -the low est level in the past 10 years,“ Prasad Koparkar, head of industry and customised research, Crisil Research, said in the report.

Small-sized cement manufacturers ­ with capacities of less than 2 MTPA ­ are likely to post losses of about 2% per cent at Ebitda level in 2012-13. Large cement manufacturers capacities of 1 crore tonnes per annum or higher however, will fare better than the industry average, with Ebitda margins of about 12%, the report added.

Source: mydigitalfc.com

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Indian Cement Companirs Under CCI Lens

Probe by CCI director-general finds most of them guilty of cutting production to raise price, reports Jharna Mazumdar
DG-level probe finds these firms guilty of cartelisation over 4 years



IN A crackdown on cartelisation of cement manufacturers, Competition Commission of India's director general has conducted a detailed investigation on over two dozen companies, including leading players such as ACC, Ambuja Cement and UltraTech.

The report submitted to the CCI chairman HC Gupta has held most of the companies guilty of cutting production to raise cement price.

CCI is now seeking a response from these companies on the DG report.

CCI chairman HC Gupta told that the director general investigated the matter for the past six to eight months, and that a detailed report is ready. “We are sending letters to the companies in next 10 days, in which we will attach the report submitted by the DG, and seek responses from these companies,“ said Gupta.

A week ago, CCI had sent letters to all these companies, but withdrew them, citing some errors.

The companies will be given three to four weeks time to submit their responses or explain their stand to the commission, Gupta said.

Minimium 25 cement companies were found guilty of cartelisation for the four years under assessment between 2007 and 2011.

“ACC, UltraTech, JP Associates, Ambuja, Lafarge and many other companies have been found guilty under Section 3 of the Competition Act, and were named in the report,“ one official said. Section 3 of the Act refers to cartel and anti competitive acts.

He said the investigation was initiated on the basis of two complaints ­ one filed by the Builders' Association of India and the other, transferred from Monopolies and Restrictive Trade Practices Commission (MRTPC).


A spokesperson from Ambuja said, “We have got a letter from CCI and are going through it..“

An Aditya Birla Group associate said, “A letter was sent to us, but that has been withdrawn. Only after we get the new letter, we can comment on it.“ Group executive president Pragnya Ram claimed that “the company has not done any cartelisation to inflate cement prices.“

Cement analysts said if the companies are found guilty, they would have to pay a significant fine. Independent analyst SP Tulsian said, “If proved guilty, the fine on cement companies can be between Rs 100 crore to Rs 1,500 crore, depending on the turnover and production capacity.“

Rajesh Kumar Ravi, an analyst with Karvy Stock Broking, said the present utilisation capacity of cement companies varies from 50 to 70 per cent. “The companies have brought down production as demand fell significantly due to the slow down in the realty sector,“ he said. Demand started slowing down since June 2010 after several scams were unearthed in the realty sector.
Already, profits of cement companies had declined significantly compared with the past three years and by maintaining a production discipline, they were trying to save themselves from incurring huge losses, Ravi pointed out.

Due to the decline in demand, the companies failed to pass on the rise in input cost and were left with no other option except for production discipline, he added.

A CRISIL Research report on cement sector said it expects profitability of cement firms to decline to its lowest level in the past 10 years by 2012-13. A huge demandsupply imbalance, fuelled by supply glut, will drive prof itability down for cement firms. The supply glut will slacken cement manufac turers' operating rates, re stricting their ability to pass on a sharp rise in power and fuel costs to consumers, it said. The report said over the next two years, while cement capacities will rise by 60 mil lion tonnes per annum (MTPA), demand will in crease by a mere 30 MTPA.

Operating rates of cement manufacturers will, there fore, plunge to around 72% per cent in 2012-13 from an already subdued 78% in 2010-11.

Cost of power and fuel, a major input for cement, will increase by around 18 per cent in 2011-12, given the steep increase in coal prices by the industry's dominant supplier, Coal India. In addiBloomberg tion, an increase in effective excise duty rates will lower net price realisations of cement manufacturers by 2-4 per cent.

“The magnitude of the demand-supply imbalance and cost escalation will halve the cement industry's operating profit (Ebitda) margins from 20% per cent at present to around 10 per cent in 2012-13 -the low est level in the past 10 years,“ Prasad Koparkar, head of industry and customised research, Crisil Research, said in the report.

Small-sized cement manufacturers ­ with capacities of less than 2 MTPA ­ are likely to post losses of about 2% per cent at Ebitda level in 2012-13. Large ce ment manufacturers --capacities of 1 crore tonnes per annum or higher however, will fare better than the industry average, with Ebitda margins of about 12%, the report added.

Source: mydigitalfc.com

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DLF in talks with IDFC to sell Noida IT park shares, reduce debt

India’s largest real estate company DLF, is in talks with IDFC to sell the entire 70% stake it holds in DLF IT Park, Noida.
The move is part of the company’s strategy to reduce debt. DLF is looking to raise around Rs. 950 crore through the sale.

If the talks bear fruit, IDFC will get full control over the park. This is because DLF’s 30% partner in the venture, another real estate firm 3C, has also decided to sell out.

The DLF IT park in Noida has a total of 13 lakh sq ft space with Computer Sciences Corporation as the marquee tenant.

As on June 30, 2011 DLF’s total debt stood at Rs. 21,524 crore. It has so far realised nearly  Rs. 3,200 crore from sale of non-core assets that include hotel plots.

DLF reported a 12.81% decline in its consolidated net profit at R358.36 crore during the first quarter ended June 30.

IDFC is an integrated infrastructure finance player providing end-to-end infrastructure financing and project implementation services. Foreign investors hold about 47% stake in the company, in which the government has around 18% stake and retail investors over 10%.
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World's first semi submerged hotel to be in Qatar

The world’s first semi submerged hotel resort is to be built in Qatar and has been designed by Italian designer Giancarlo Zema which specialises in semi submerged architectural structures, floating habitats and yacht design.

The activities of the hotel take place in the underwater area that is surrounded by aquariums. The project is composed of a land section and sea section.

On the land area there will be residential buildings, office buildings and a marina with a modern and flexible harbour and a tower restaurant with panoramic views.

In the sea area there are 4 innovative semi submerged hotels with underwater rooms and 75 ‘jellyfish’ floating suites that give fascinating views.

The Amphibious 1000 will be built in the middle of a marine reserve. ‘It is designed to be in harmony with nature. It is like a big aquatic animal stretching out from the land into the sea and extends horizontally for one kilometre thanks to two long wide arms.

The hotel’s underwater rooms will resemble super yachts while the jellyfish suites will each have four floors and an underwater aquarium lounge. Hydrogen powered yachts with underwater viewing areas will transport guests around the resort.

‘The 4 hotels, each of the 75 luxury suites will have a terrace .There will also be water exhibition galleries, aquariums and a glass tunnel that will lead to the underwater observatory in the centre of the marine park. The long arms connect to fitness areas, gardens and a special outdoor theatre with a moving stage that opens out onto the sea. Bridges connect the land and the sea and will be planted with tress and flora to being the land and the sea together.

Eco friendly electric vehicles will transport guests around inside and on the water 20 meter aluminium yachts called Trilobis equipped with hydrogen engines and an underwater observatory globe are provided.

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Indian home loan increase to Rs. 2,50,270 Cr

Indian home loan sector, outstanding amount is increased to Rs. 2,50,270 Cr
  in Rs. Crore

Public Sector Banks (Rs. Cr)

March 2010  Rs. 1,73,316
March 2011  Rs. 1,88,268

Private Sector Banks (Rs. Cr)

March 2010  Rs. 52,538
March 2011 Rs.  58,083

Foreign Banks (Rs. Cr)
March 2010   Rs. 5,088
March 2011   Rs.3918

Total (Rs. Cr)

March 2010 Rs.2,30,942
March 2011 Rs. 2,50,270

Source: Rajya Sabha

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Govt. agencies CMDA, DTCP blamed for realty crisis in Tamil Nadu

One of the leading builders' association has accused two Tamil Nadu government agencies of holding up residential and commercial projects worth Rs 7,500 crore by delaying approvals.

Mr. T Chitty Babu, CREDAI (Confederation of Real Estate Developers' Association of India ) Tamil Nadu chapter President said, ''The two regulatory agencies, the CMDA (Chennai Metropolitan Development Authority ) and the DTCP (Directorate of Town and Country Planning), were sitting on applications seeking clearances for projects.

The piling up of about  700 files started 3 months before the assembly elections and there has been no respite even after the polls. The resultant loss to the exchequer in the form of infrastructure and amenity charges, scrutiny fee, development charges, property tax, stamp duty and value added tax was approximately Rs 1,750 crore.

On an average, projects take 18 to 24 months for CMDA and DTCP approvals. But now, it has overstretched by 6 more months and there is no sign of any relief.

Mr. Prakash Challa, Former Vice President of CREDAI said,'' In all, about 4.35 crore sq ft of projects are awaiting approvals before the CMDA and DTCP. Nearly  450 of those files are with the CMDA. About 80% of them are residential projects. Any delay in their approvals would only add to housing shortage in the state, which stands at a staggering 28 lakh houses. It may result in about 3 lakh people in the construction sector going jobless".

Mr. N Nandakumar, Secretary, CREDAI Tamil Nadu said, ''The procedural delays, increase in home loan interest rates and the mounting input cost,  prices of sand, bricks, cement and labour are forcing builders to increase the selling price of projects by Rs. 200 per square feet" 

Some CREDAI members also spoke about hidden costs involved in project approvals. However, they hastened to add, "Ours is a transparent organisation and we do not encourage unfair trade practices.
One of the members said files of even approved projects were being reopened by officials.

Asked about the delay in giving approvals for projects, State housing minister R Vaithilingam said, "There is some amount of delay owing to shortage of staff at various levels in the CMDA and DTCP. I convened a meeting of housing secretary, member secretary CMDA and DTCP director and instructed them to speed up the approval process. I have given an ultimatum that no file should be kept pending for more than 4 months."

Courtesy: www.myreality.in
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Today's Tips - Tomorrow's Bribe, Do You Agree It?

Today's Tips - Tomorrow's Bribe, Do  You Agree It?                     -  KAAVIYA, Chennai

As you know, we all suffer a lot due to bribe/ corruption… but, do you
know, we only started it! (also introducing new, new forms of it, even
today).

Yes, what we give as ‘tips’ - today bounces back as ‘bribe’- tomorrow.
for eg. Take call taxi drivers, already we face a lot with auto drivers
for long time. Few yrs back, call taxi came in, with correct meter, proper
procedures to pay correctly. But, few within us, polluted them by rounding
the amount Paying 100/- instead of 90-95/-. now, call taxi also started
‘demanding’ like autos. It happens everywhere, every time!
This thought is going in my mind for long time, espl. For last 2 weeks, my
father is in hospital for treatment & I am seeing the different dimensions
of this issue.

1. one who can afford, pays extra & get things done quickly.
2. one who gets something, expects it from everyone or he will behave
differently.
3. Finally, one who can’t afford, suffers a lot!

As we know, we have many groups/ associations to fight against corruption,
bribe…, but they can’t reach the goal without us!
Of course, in short term, ‘giver- receiver’ gets an instant happiness out
of it, but in long term, it affects the discipline/ morality of the
organization (many of my friends from hospital, hotel industry- share
their sorrow story on this). So, as an individual,

1. take a oath, ‘NOT TO RECEIVE ANYTHING UNETHICALLY’ (As you know, in my
industry, a commission will be minimum RS.1-2lacs, but I strictly say ‘no’
to it & I don’t expect to collect even a single rupee unethically from all
others, not only my buyers).
2. pls don’t raise ‘this extra service charges’ as you wish. If everyone
pays RS.100/- means don’t give RS.120-150/- as it forces others to pay
like you. Pls don’t ‘introduce’ new one, as we have many things to clear.
3. In the worst conditions, if you wish to pay, just pay! But don’t expect
a ‘salaam’ for you (as we see in many hotel entrances, one big- well
dressed- elderly person will be standing & putting ‘salaam’ for just
RS.10/-. Is this the way to treat our fellow human being? (paying rs.10/-
to get a ‘salaam’ is like paying RS.1-2/- for elephant blessings).
 Even, if you have a different opinion about it, pls share your thoughts.
But, keep an eye on this issue, don’t think, ‘as an individual, what can I
do?’.
 Every big changes/ revolution, started from a single point/ person.
Come on friends, jump into the game & play fully, don’t be ‘lifetime’
spectator. Don’t stop yourself by ‘just forwarding’ some mind blowing
mails on 2g scam, parliament expenses wasting, election spending, ….
Stop ‘just forwarding’, start action, take your baby steps to resolve
this, if you really care for it.
If you really care for others & want to share, pls do it in a proper way
of charity, don’t do like spitting everywhere!
Simply, telling to others, ‘you don’t ask anything!’ is endless- tedious way,
just tell yourself daily, ‘I don’t ask anything, today!’ – simple, very
effective & result producing way!.
“Be the change, you want to see!”- MK Gandhi.


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CMDA and DTCP blamed for realty crisis in Tamil Nadu : CREDAI

A leading builders' association has accused two Tamil Nadu government agencies of holding up residential and commercial projects worth Rs 7,500 crore by delaying approvals.

Mr. T Chitty Babu, CREDAI (Confederation of Real Estate Developers' Association of India ) Tamil Nadu chapter President said, ''The two regulatory agencies, the CMDA (Chennai Metropolitan Development Authority ) and the DTCP (Directorate of Town and Country Planning), were sitting on applications seeking clearances for projects.
The piling up of about  700 files started 3 months before the assembly elections and there has been no respite even after the polls. The resultant loss to the exchequer in the form of infrastructure and amenity charges, scrutiny fee, development charges, property tax, stamp duty and value added tax was approximately Rs 1,750 crore.
On an average, projects take 18 to 24 months for CMDA and DTCP approvals. But now, it has overstretched by 6 more months and there is no sign of any relief.".

 Prakash Challa, Former Vice President of CREDAI said,'' In all, about 4.35 crore sq ft of projects are awaiting approvals before the CMDA and DTCP. Nearly  450 of those files are with the CMDA. About 80% of them are residential projects. Any delay in their approvals would only add to housing shortage in the state, which stands at a staggering 28 lakh houses. It may result in about 3 lakh people in the construction sector going jobless".

Mr. N Nandakumar, secretary, CREDAI Tamil Nadu said, ''The procedural delays, increase in home loan interest rates and the mounting input cost,  prices of sand, bricks, cement and labour are forcing builders to increase the selling price of projects by Rs 200 per sq ft" 

Some CREDAI members also spoke about hidden costs involved in project approvals. However, they hastened to add, "Ours is a transparent organisation and we do not encourage unfair trade practices.
One of the members said files of even approved projects were being reopened by officials.

Asked about the delay in giving approvals for projects, state housing minister R Vaithilingam said, "There is some amount of delay owing to shortage of staff at various levels in the CMDA and DTCP. I convened a meeting of housing secretary, member secretary CMDA and DTCP director and instructed them to speed up the approval process. I have given an ultimatum that no file should be kept pending for more than 4 months."

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CARE downgrades DB Realty arm's bank facilities

Indai's leadig rating firm CARE Ratings has downgraded the ratings for Rs 73 crore long term bank facilites of Neelkamal Realtors and Builders, a unit of DB Realty group.

CARE has revised the ratings 'CARE BB' to 'CARE D' due to delays in servicing of the company's debt obligations due to inadequacy of lease rentals from retail mall Orchid City centre Mall in Mumbai.
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Tamil Nadu Housing Board announces Rs 340 crore project

The Tamil Nadu government has announced a Rs 340-crore residential project development through the TNHB (Tamil Nadu Housing Board) in major cities and towns.

This was part of the announcements on the Housing and Urban Development plans for 2011-12 in the state Assembly by the minister, R. Vaithilingam. The plans include development of a 311-acre township to the west of Chennai at Thirumazhisai.

In Chennai, the TN government also plans to redevelop some of the old houses with TNHB and the City Improvement Trust to create a larger number of units, and upgrade traffic and transportation infrastructure in arterial roads.

Through new projects, TNHB will construct about 2,430 residential houses including nearly 725 flats in Chennai, 16 in Salem, 566 houses in Kanchipuram, Villupuram, Erode, Coimbatore and Tirunelveli, and 1,122 housed in Cuddalore, Ariyalur, Virudhunagar, Theni, Madurai and Ramanathapuram.
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Flat buyers benefit from Competition Commission of India verdict

The Competition Commission of India (CCI) has imposed a penalty of around 600 crore on realty major DLF for abusing its dominant market position. Levied by the anti-monopoly watchdog , the penalty was imposed after DLF was found guilty of violating the Competition Act, 2002. The fine amounts to 7% of the company's average annual turnover in the past three years.

Following complaints in May last year by several people who had booked flats in a DLF project, the CCI had referred the matter for probe by the Director General (Investigations). According to one such complaint, DLF had promised to complete Belaire, its residential project in Gurgaon, in 2009, but buyers are yet to get possession of their apartments.

In addition, DLF has increased the number of floors in the apartment complex from the original figure given to buyers. This led to the number of apartments in Belaire shooting from 384 to 564. DLF has been penalised for an offence that is common among the hundreds of other builders in the country.

"This is a significant intervention by the Competition Commission and if upheld, it gives a powerful tool to the average property buyer against the developer. A buyer may refuse to sign the agreement quoting this judgement, saying that it is anti-competitive and, therefore, unacceptable to him," says Farhad Sorabjee, partner at law firm JSA Law.

The CCI, in its 237-page order against DLF, has criticised the terms and conditions of the contract, which was signed by the company with the buyers of Belaire. It said that these were stacked in favour of the developer. DLF, in its defence, says that these were industry practices and it was merely adopting the same. Now, the Commission is likely to order a probe into other developers based on preliminary investigations , which suggest abuse of power by the developers.

To avoid the same fate as that of DLF homeowners, consider the following points highlighted by the CCI before signing the buyer's agreement. If, however, you are a victim, we tell you how to approach the Competition Commission in order to redress your grievances.

Punitive penalty:

 For any delay in payment by buyers, DLF wanted them to pay an interest of 15% per annum for the first 90 days after the due date, and 18% for delays beyond that. In sharp contrast, a delay of over three years on the part of the builder would entitle the buyer to a compensation of just 5 per square foot per month. There is no timeline specified for delivery of possession by DLF.

Unilateral right to increase/decrease super area:
 DLF has the unilateral right to increase or decrease the super area without consulting allottees, who are bound to pay an additional amount when demanded by the company or accept a reduction in area. If there is a reduction in the super area, the refundable amount due to the allottee is to be adjusted from the final instalment.

No exit option for buyers:

Allottees have no exit option except when DLF fails to give possession within the agreed time. Even so, the buyer gets the refund without interest only after the sale of the said apartment by DLF and without accounting for the sale proceeds to the allottee.

Exit clause for the company:

DLF's exit clause gives it full discretion, including abandoning the project, without any penalty. The company's liability in such a case is limited to refunding the amount paid by the allottee, with a simple interest of 9% per annum for the period for which the amount was lying with the company, and to pay no other compensation.

Unilateral changes in agreement:
The developer claims the right to make changes in the agreement unilaterally without any right to the allottee.

Layout plan and land use:

 DLF retains the right to change the layout plan without the consent of the allottees. The agreement says, "It shall not be necessary on the part of the company to seek consent of the allottee for the purpose of making any changes in the layout plan. It is also the company's discretion to change areas for different uses like residential, commercial, etc, without even informing the allottees ('the total number of zones and their earmarked uses may be changed as per the sole discretion of the company').

Preferential location charges:

The preferential location charges are to be paid upfront. However , if the allottee does not get the location, he only gets a refund or an adjustment of amount at the time of paying the last instalment without any interest.
Proportion of land: The proportion of land on which the apartment is situated and on which the allottees would have ownership rights shall be decided by DLF at its discretion and the allottee cannot raise any objections in this regard.

Community buildings:

 DLF enjoys full rights to community buildings, sites, recreational and sporting activities, including maintenance, with the allottees having no rights in this regard.

External development charges:
 Allottees are liable to pay external development charges without these being disclosed in advance and even if these are enhanced.

Power supply and charges:

 The arrangement of power supply and rates levied for the same are at DLF's discretion. These rates will be fixed from time to time by the company and may not be limited to the rate charged at the time by the state electricity boards.

Forfeiture of the amount paid:
 The allottees are required to authorise the company to forfeit the amounts paid or payable by them, the earnest money if the allottee

Third-party rights:

securitisation of receivables of the apartment, building, complex or a portion of land. The company/ financial institution / bank shall always have the first lien/ charge on the said apartment for all their dues and other sums payable by the allottee or in respect of any loan granted to the company for the purpose of construction of the said building or complex.

Sourec: ET

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Indian real estate companies have been adding Rs 14 Cr debt a day

The debt load of 11 listed real estate companies in the country has risen 15%r by Rs 5,000 crore, to Rs 38,500 crore in the last one year. That’s nearly Rs 14 crore of debt added every single day.
Most of the increase happened in the latter half of the last fiscal which ended on 2011, March 31, citing an analysis by Aashiesh Agarwaal and Adhidev Chattopadhyay, analysts with Edelweiss Securities.

A huge chunk of this -- or Rs 21,520 crore -- is being borne by DLF. That number is up 16.6 per cent, or by Rs 3,060 crore, from Rs 18,460 crore in the last 12 months. Meaning, DLF alone added more than Rs 8 crore per day to its debt bloat.

What makes things worse, Agarwaal and Chattopadhyay said, is developers are finding it tough to generate enough cash flows to take care of interest payments. That makes it difficult for realtor's to even think of reducing the debt load in the medium term, they said.

Amit Goenka, national director, capital transactions, at Knight Frank India said the cost of servicing this debt has also increased in the period from 14-15 per cent to around 18 per cent for listed players. “The situation may be worse for the unlisted players -- they will have to cough up another 200-300 basis points,” he said.

Interest rates on home loans have risen more than 200 basis points in the last 12 months due to which loan sanctions are also getting delayed.

The critical issue for realtors over the next 12 months would be to ensure their debt load doesn’t enlarge, especially since fund availability is constrained and many loans are coming up for repayment in this fiscal. The net debt story for the listed realtors is mostly about three players -- HDIL, Unitech and DLF, points out another analyst with a foreign brokerage.

While DLF has started looking at options to reduce debt, HDIL and Unitech continue to say they are comfortable, but we don’t think so,” the analyst said.

The overall debt may stabilise than go up. In the context, a good traction in sales becomes another crucial imperative, he added.

Realtors based out of Bangalore have been the best in this regard, the Edelweiss duo said. Not surprisingly, Sobha Developers and Prestige Estates have both managed to reduce their debt levels -- Sobha by 7 per cent from Rs 1,400 crore to Rs 1,300 crore in the last one year, and Prestige Estates by 37 per cent from Rs 1,900 crore to Rs 1,200 crore in the same period.

Realtors operating in the National Capital Region near New Delhi, on the other hand, have had a mixed run, while those in Mumbai continue to grapple with slowing sales.

How will all this affect property buyers? “There could be project delays and worse, project failures. It could also translate to more distress sales of projects midway to stronger players and compromise in quality - more so among the unlisted players,” Goenka warned.

Source: DNA    

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Horizon Realty Fund launches Amanora Town Centre

Mumbai-based Horizon Realty Fund has launched the first phase of 11 lakh sq. ft  ATC (Amanora Town Centre), one of Pune’s largest shopping, entertainment and leisure destinations with an investment of Rs 635 crore.
The fund, managed by Everstone Capital Advisors, a spinoff of Future Capital Holdings, has formed a 50:50 joint venture company City Realty Development with City Corporation, a Pune-based realty developer.
ATC is coming up on 14-acre land of City Corporation, which was valued at Rs 250 crore. It is being developed in Hadapsar at the entrance of the 500-acre Amanora Park Town, a City Corporation project with a total of 15,000 apartment and an investment of Rs 7,500 crore.
ATC will showcase over 300 brands covering apparel, home, hypermarket, food and beverages, entertainment, leisure and gaming. It has everything from premium to mass retail, eight screen multiplexes, quick service restaurants, cafes and fine dining options offering engaging experiences for a fun family day.
Vanilla retail will constitute 29% of the ATC, departmental stores 16%, home and electronics 15%, food and beverages 17%, entertainment and books 14%, and hypermarkets 8%..
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Average age of first time buyer in UK rises to 35: Research Shows

The average age of a first time buyer in the UK has increased by 8s since the 1960s, new research shows.
According to the research firm Post Office Mortgages the average age when someone buys their first property is now 35 and over half, 53% of would be buyers not on property ladder think they will never afford to buy a home,

Half of  25 t 5o 34 year olds need a lump sum or better paid job to fund deposits, the research which tracked the average age of first time buyers since 1960, also found.
Those who bought their first home in the early 1960s were on average just 23 years old, significantly lower than today's expected average age of 35. Women who do not yet own a property are slightly more optimistic than men, expecting to buy a home at 34, compared to the male expected average of 37 years old.
On a regional basis, would be buyers living in London are having the most difficulty when it comes to raising a deposit, with high prices in the capital likely to be standing in their way. Some 43% of Londoners said they couldn't afford the deposit without a change in their circumstances such as receiving a lump sum from family. This compares to the national average of 37%t.
Potential buyers in the West Midlands buck the overall trend as just 22% of people in this region said raising the deposit is the main barrier. However, 32% of people in this region cited unaffordable mortgage repayments, compared to 12% nationally.
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What is Serviced Apartment?

A serviced apartment is a type of furnished apartment available for short-term or long-term stays, which provides amenities for daily use.

Serviced apartments can be less expensive than equivalent hotel rooms. Since the beginning of the boom in cheap international travel and the corresponding increase in the level of sophistication of international travelers, interest in serviced apartments has risen at the expense of the use of hotels for short stays.


 Why service apartments?

This is like a hotel, but a home. Absolutely, that is the new concept that is sold by hotels, today. It is called the service apartment. The room has a homely look and is propped with everything a home would need. From television & music and home appliance to kitchen needs, bathroom and toilet accessories. It’s like your home, although you are miles away from it.
The benefits of serviced apartments may include more space and privacy, convenience when traveling with a family, and the cost savings associated with cooking one's own meals in the apartment.

This is a new concept in India but the western countries have already welcomed it. Five Star Hotels brought this style to clients who would stay for a long period. They realised in the beginning clients loved the luxurious service but after a month they longed for their home. Thus a serviced apartment would offer most of the aspects of your home. Making you feel at ease, as though you were at home.

Reason why service apartments were brought into being. You cook and eat and live the style you want. You are even provided with a maid/manservant who will get you groceries or any other requirement. Making it just the way it would be at home.

Nowadays Indian immigrants coming to India to settle opt for this type of apartments. As they hunt for a new house they accommodate themselves in comfort in a service apartment.

 A service apartment generally provides you with an AC furnished flat, equipped kitchen, TV, fridge, washing machine, landline, internet, power back-up, fire safety & security and some even provide you with a locker. However before booking the apartment always make sure what is inclusive and what is exclusive. For instance who will pay the electricity, maintenance. Hence make sure what are you paying for. The cost of a service apartment too is as attractive as the concept. It can vary. All the amenities including a swimming pool, gymkhana, a garden or even more.

Types of Serviced apartment



There are mainly two types of Serviced apartment. The first type is more like a hotel compact studio apartments with a small kitchen attached to the room,  pullout beds which make living room and bedroom
The second is more like a houses or a regular apartment complex converted to serviced apartment which are much more spacious and regular home like environment with hotel like service and these are not usually in commercial locations.

What both these types have in common is that the units are all fully furnished and equipped and the guests will enter a home away from home, with cooking facilities and all modern conveniences such as television, DVD, internet access etc. Some are equipped even have luxury features such as European-style gourmet kitchens, generous closet space, full-sized washer and dryer, ceramic tiled bathrooms, oversized tubs, and high-tech wiring/networking capabilities. Having a kitchen means that the client can opt for eating in instead of out, hence making an instant saving. Other benefits of a serviced apartment include, added space to both work and play, more privacy and more comfort.



History of serviced apartment

The serviced apartment concept was created in the United States, and the influence of America on the global serviced apartment market remains huge. About 85% of the  world's stock of serviced apartments is still located there.

In the UK one of the first companies to offer corporate housing was The Apartment Service with their Roomspace Serviced Apartments and Executive Roomspace brands.

In Australia Meriton Serviced Apartments leads the way with over 2,000 apartments self owned and operated.


According to the 2008-09 industry report of The Apartment Service Worldwide, the annual size of the service apartments sector, all over the globe, is USD 1,850 Crore  The report further states that in some of the big Indian cities, the real estate prices have increased by 40% since 2007! Since the hotels in these cities do not meet the short term housing requirement of many, serviced apartments have mushroomed in several cities.

While looking for serviced apartments please consider the following points:

1. Many people contact real estate agents offline to search for agood service apartment. This, however, will not ensure that you get the best prices. Instead look for a website that offers online reservation of such accommodation.

2. Check the website carefully for the housing amenities being offered and whether they are equipped with the kind of conveniences you desire, for example, an LCD TV and 24-hour electricity back up.

3.  It is recommended not to select serviced apartments in suburbs since the transportation facilities in these areas are usually bad. Staying at a central location can save you a lot of time as well as money.

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India the cheapest place in the world to build : EC Harris Report

According to the annual International Construction Cost Comparison Report released by asset consultancy EC Harris, construction costs in Switzerland are more than 25% higher than anywhere else in the world.

In EC Harris's annual report had construction costs in 55 countries across the world. The price of construction in Switzerland is 71% higher than in the UK where costs are now more than 20% below their peak price in mid the year 2008. Overall, the UK is now tied with Bahrain as the 12th most expensive place in the world to build, up four places from 2010 where it finished in 16th place.

However, this has been largely due to falling costs in other countries rather than rising prices in the UK where construction costs have continued to drop over the last one year.
Denmark retained its position as the 2nd most expensive place to build, closely followed by its Scandinavian neighbour Sweden. Australia and Canada were the only non-European markets to make it into the top 10 although Bahrain just missed out, finishing in 12th place overall alongside the UK.

India and Sri Lanka were tied as the cheapest countries in which to build with construction costs estimated to be 72% cheaper than the UK baseline.
The report also says that the outlook for the UK construction sector will be tough over the next couple of years and the fall in construction tender prices, which started in 2008 is expected to continue well into 2012 for most of the country.
The EC Harris's annual report also underlines the need for Western economies to start planning ahead now to guarantee access to the raw materials needed for future construction projects. During the economic downturn global supply chains have shifted their focus to meeting the demands of economies like China and India and are likely to continue to prioritize them over the coming years as they offer the greatest revenue growth opportunities.
Average construction costs in the US are around 10% lower than in the UK.
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Pune Municipal Corporation's plan: Reduce property tax for women

A proposal to grant 5% concession in general tax of the property tax to women who have properties registered in their names will be implemented from the next financial year in Pune Municipal Corporation.

Mr. Vilas Kanade, Tax Department Chief  of P.M.C said, "This proposal could be implemented by the P.M.C from next financial year  - 2012-13. as the civic body is authorised to grant such concessions as per the Bombay Provincial Municipal Corporations (BPMC) Act, 1949,"

Following the example of the Pimpri Chinchwad Municipal Corporation, the PMC standing committee in March had approved a proposal to grant five per cent concession. All party corporators demanded that the PMC should implement this proposal without any delay.
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India's household savings Hit 13 year Low

According to the annual report of the RBI (Rerseve Bank of India), Indians are saving less and borrowing more.

The financial savings of an Indian household sector has moderated to 9.7% of GDP in 2010-11 from 12.1% in 2009-10, This was reflected in lower growth in their bank deposits, life insurance as well as decline in investment in shares and debentures.

Bank deposits that stood at Rs. 4,41,063 crore, constituting 60.7% to the total financial savings in 2008-09, fell to 47.3% in 2010-11.
On a similar note, provident and pension funds, which constituted 10.1% of the total savings, reduced to 9.1% in 2010-11. Households' financial liabilities increased, reflecting higher borrowings from  banks.

The RBI stressed on the need to maintain a long term balance between consumption and investment by re balancing demand from consumption to investment by stepping up savings in the economy.

India's household savings, which have fuelled growth over the last few years, have dropped to below 10% of gross domestic product, or national income, for the first time in 13 years, as soaring inflation ate into disposable incomes.

The last time net financial savings as a percentage of GDP dipped below 10% was in 1997-98 when it fell to 9.6%.

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SEBI Clarification: MF transaction charge is not compulsory

The transaction charge on mutual funds (MFs) that the capital market regulator, SEBI (Securities and Exchange Board of India) has allowed the agents to impose on their investors is not compulsory. SEBI has given the option to distributors to either charge or opt out of charging it to their investors.

After Mr.U.K. Sinha took over as SEBI chairman in 2011, February, he constituted a committee to suggest measures to “Revive the Indian Mutual Fund industry“.

The market regulator SEBI accepted this committee's recommendations and introduced a transaction charge of  Rs.100 that distributors can charge to investors for every subscription of Rs.10,000 and above.

If any one invest in an mutual fund for the first time, he/she will be charged Rs.150 for every subscription of  Rs.10,000 and above and then Rs.100 for subsequent investments.

Same time, since SEBI has given the option to agents to charge or not to charge, there's a good chance that your agent may not collect this fee. Market sources say that many agents who work in metros and big cities such as Mumbai, Delhi and Ahmedabad, Chennai will not collect this fee.

For starters, many such large and established agents feel that this fee is too small. Also, after the entry loads were abolished, many large distributors changed the way they do business and started accepting charges directly from investors, as per SEBI's 2009 August  advice.

Internet transaction portals such as www.fundsindia.com & www.fundsupermart.co.in have categorically stated that they will not impose transaction charge. So you need to ask your agent whether or not he will levy transaction charges at the time of investment.

SEBI has clarified that agents will have to follow a uniform practice when dealing with their clients. In simple words, if your agent chooses to levy transaction charge, he will have to collect the same from all his clients. He cannot charge one client, and choose to exempt another.
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Pune Municipal Corporation: Cut property tax for women

A proposal to grant 5% concession in general tax of the property tax to women who have properties registered in their names will be implemented from the next financial year in Pune Municipal Corporation (P.M.C)

Mr. Vilas Kanade, Tax Department Chief  of P.M.C said, "This proposal could be implemented by the P.M.C from next financial year  - 2012-13. as the civic body is authorised to grant such concessions as per the Bombay Provincial Municipal Corporations (BPMC) Act, 1949,"

Following the example of the Pimpri-Chinchwad Municipal Corporation, the PMC standing committee in March had approved a proposal to grant five per cent concession. All party corporates demanded that the PMC should implement this proposal without any delay.
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Investors Awareness Education on Augest 31

Share market Investors Awareness & Education Programme to be held on Wednesday, the 31st August 2011 at 05.00 p.m. at the Registered Office of the  MADRAS STOCK EXCHANGE, Exchange Building, No.30, Second Line Beach, Chennai-600 001.

Mr. Suresh Padmanabhan,
Columnist, Speaks on Money Success in Stock Market.

Mr. V. Nagappan, Director, Madras Stock Exchange (MSE) and Chairman MSE ICM will interact with investors.

Contact 
mse.investoredu@gmail.com
Phone: 044- 2522 8951/52/53
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What is Education Loan

Student’s future education plans are supported with the availability of the educational loans that secures one’s life. There are years when students strived hard with the learning activities without any external support with financial issues.

Educational loans were much in demand that hardly few lucky students could avail them, but now the condition has turned upside down. Now adays students can apply for loans from various sources which are obtained easily without much strain. There are several funds being kept aside for student’s welfare education and development based on their family income background and backups.

Educational loans bridges the gap between the ‘students’ from lower background and ‘education’ that enlightens the knowledge of one’s future development.
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What is Mortgage Loan?

A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

A home buyer or builder can obtain financing either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.
ets have developed.

The word mortgage is a Law French term meaning "dead pledge," apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the property is taken through foreclosure.
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What is Home Loan?

Purchasing a house can be a valuable form of investment. However, it requires considerable thought and careful financial planning before taking on such a big step. If owning a house is part of your financial goal, then you’ll need to know whether you can afford from your income and savings. You can use our housing loan calculator to find out your monthly instalment, total repayment and total interest for any particular housing loan packages.
 
Most people take on a housing loan from a banking institution which offer different loan packages to cater for the needs of different users. Be sure to compare rates and choose a loan based on its features, fees and charges as well as the quality of service offered by the institution.
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Punjab realtors say no to corruption

Inspired by Mr.Anna Hazare's anti-corruption movement, major  real estate developers of Punjab have announced not to pay bribes to government officials in future for getting their projects approved or for other related issues.

Punjab chapter of Confederation of Real Estate Developers' Association of India (CREDAI), which has been formed recently after merger of Punjab colonizers and builders association has announced they would take oath during their national-level conference on September 2 and 3 in Chandigarh.

"We will not pay bribes for perpetuation of our business and this would also be included in the oath," said CREDAI Punjab Chairman Mr.Anil Chopra and President  Mr.Kulwant Singh. They said government authorised developers were their members and they were developing government authorized colonies.

Mr. Chopra and Mr. Kulwant Said "Most government authorized real estate developers have already come under banner of CREDAI.

Source: My Reality India


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Price set to rise in real estate sector in TN : Chitty Babu, CREDAI

Mr. T Chitty Babu, CREDAI
Despite strong growth potential for real estate in Tamil Nadu, the price per square foot is set to rise in the next two three months as the industry is reeling under a crisis, including high input costs, a top industry official said today.

Mr. T Chitty Babu, CREDAI
(Confederation of Real Estate Developers Association of India) National Secretary  said, "If the situation continues for the next two-three months, there is no other option than to increase the price per square foot by Rs 150-Rs 200 to manage this challenge. This is despite good growth prospects and a good long-term forecast,"

Stating that severe input costs is a major constraint, T Chitty Babu, also CREDAI Tamil Nadu unit President, said the industry was facing acute labour shortage. Besides, cement price per bag at Rs 280 kg per bag was the highest in India, compared to states like Gujarat, Karnataka, where it was around Rs 200 and Rs 225 per bag respectively.

Mr. T Chitty Babu also said, ''Tamilnadu must need a single window clearance for speedy processing of approvals for projects.There are now 676 files waiting clearance by government agencies.If the situation persists, then there will be Rs 1, 500 crore revenue loss. The overall estimated real estate projects (in India) are 27.5 million square feet, of which Tamil Nadu constitutes 10%. All files be processed faster for any real-estate development need. In Karnataka it was recently modified to 15 days. But in Tamil Nadu it takes months. We need it to be done in 15 days with more transparency It is because of this situation that the real estate industry in Tamil Nadu is losing many good housing projects to other states."
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Punjab Real Estate Developers say no to corruption

Inspired by Anna Hazare's anti-corruption movement, major real estate developers of Punjab have announced not to pay bribes to government officials in future for getting their projects approved or for other related issues.

Punjab chapter of Confederation of Real Estate Developers' Association of India (CREDAI), which has been formed recently after merger of Punjab colonizers and builders association has announced they would take oath during their national-level conference on September 2 and 3 in Chandigarh.

"We will not pay bribes for perpetuation of our business and this would also be included in the oath," said CREDAI Punjab chairman Anil Chopra and president Kulwant Singh.They said government authorised developers were their members and they were developing government authorized colonies.

Chopra and Kulwant Said "Most government authorized real estate developers have already come under banner of CREDAI.
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Northeast Realty Expo 2011 gets under way

Mr.Tarun Gogoi, Chief Minister of Assam inaugurated the ‘Northeast Realty Expo 2011’ at the Maniram Dewan Trade Centre in Guwahati. The real estate event  organised jointly by the Assam Real Estate & Infrastructure Developers’ Association (AREIDA), and the Hindi daily Dainik Purvoday. It  will conclude on August 28.

About  70 leading promoters are participating in the event displaying over 20,000 dream homes at discount prices. Major participants are Merlin Projects, Godrej Properties of Kolkata, Unique Builders, ARG Group, and Mangalam Builders of Jaipur, Infinity, Simplex, Ideal Hill View, Kone, Masonite, SBI, Brahmaputra Group, Royal Estate Developers, Earth Infrastructure & Okayplus Group besides a host of others.

Earlier, Mr.Ashok Pansari Vice Chairman,  AREIDA  in his welcome address, gave an account of the real estate development scenario. “It was only very recently that real estate developers have come up in the city. The city has grown in an unplanned manner. For example, only 25% of the GS Road is occupied, the highways have lots of space for industrial growth. But vertical extension is the most plausible solutions for a city like Guwahati to grow,” he said.

PK Sharma, president of AREIDA, underlined the need for having a ‘special housing zone’, in the line of SEZs.

East Guwahati MLA Capt. Robin Bordoloi later inaugurated the ‘Traces of Seven Sisters’, a photographic exhibition on ancient architecture of the North-east.
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Why a housing loan cover?


Owning a house is one a very important financial planning decisions that one makes during his/her lifetime. With the easy availability of home loans, it is not difficult for individuals to realise their dream of purchasing their own house.

Same time, with the equated monthly instalments (EMIs ) increasing about a 3-6 months, the repayment of the loan has become a huge financial stress for an individual, where he/she has to give a large part of their salary to repay the loan.

If something unfortunate were to happen to the person who has taken the loan, the dream of owning a house can turn into a nightmare for his/her family, especially when other members may not have the ability to repay the loan amount. Not only is this a huge financial burden, but failure to pay off the EMI or loan can mean losing the security of one's house.




In order to protect the financial needs of his/her family and ensure that the house is not taken away should something unforeseen happen to any one. So, must take a life cover, covering the equal to loan amount. There are various options available in the market. Some times the bank or housing finance company arrange it self  a housing loan cover with leading life insurance companies.

 In case of any unfortunate event such as the death of the borrower before the loan is repaid, the sum received from the insurance company helps to pay off the loan outstanding to the lender. The house will be owned to the family, no further EMI's pay.
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More cases against DLF pending with CCI

Minimum 10 complaints against India’s largest real estate company DLF Ltd are pending with the Competition Commission of India (CCI ).

The new complaint was filed few days ago, before CCI’s Rs. 630-crore penalty on the company last week, which followed a petition from those who had purchased residences at DLF’s The Belair complex in Gurgaon.

The latest new complaint, filed by Two London-based NRIs, alleges that due to a delay in payment of instalments, DLF cancelled their allotments in The Belaire and forfeited the booking amount Rs. 20 lakh each.

The two  NRIs say DLF had misused its dominant position by cancelling allotments arbitrarily. There is a competition angle in this case.
Commission is soon to take up ten more similar cases pending against DLF.

CCI could also initiate a probe against other real estate developers to unearth similar anti-competitive practices. Since passing the DLF verdict, the Commission has received up to 40 consumer complaints against real estate companies across the country.
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SEBI to MF distributors : Sell products best suited for investors

The Securities and Exchange Board of India (SEBI) asked distributors to follow the principle of 'appropriateness' of products. This envisages selling only those products which are best suited for investors within a defined upper ceiling of risk appetite. If there are sufficient grounds to believe that a particular transaction is not appropriate for the customer, the distributors are required to make a written communication to investors regarding the unsuitability of the product, the regulator observed.

Such a transaction will be executed only after a written acknowledgment is received from the investors to that effect. SEBI also announced more measures to regulate mutual fund distributors introducing the concept of 'fit and proper person' in the due diligence process to be conducted by Asset Management Companies (AMC) before empanelling distributors.

SEBI said these regulations will be applicable for those distributors who have presence in more than 20 locations and have raised an asset under management (AUM) of Rs. 100 crore across the industry from retail and high net worth investors.

In pursuance to its board meeting held on July 28, 2011, Sebi also notified the introduction of transaction charges and additional disclosure requirements for the mutual fund industry. According to the Sebi circular, fund houses are required to disclose the track record of fund managers and its various schemes.

When the performance of a particular mutual fund scheme is being advertised, the regulator has asked fund houses to also include the performance data of all the other schemes managed by the respective fund manager in the advertisement. "In case the number of schemes managed by a fund manager is more than six, then the AMC may disclose the total number of schemes managed by that fund manager along with the performance data of top 3 and bottom 3 schemes," SEBI said in its circular.

In order to provide ease of understanding to retail investors, fund houses are required to disclose 'point to point returns on a standard investment of Rs. 10,000 in the advertisement.

Source: FE 
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More cases against DLF pending with Competition Commission

Minimum ten complaints against India’s largest real estate company DLF are pending with the CCI (Competition Commission of India ).
The latest complaint was filed few days ago,  before CCI’s Rs 630-crore fine on the company last week, which followed a petition from those who had purchased residences at DLF’s The Belair complex in Gurgaon.

The new complaint, filed by 2 London-based NRIs, alleges that due to a delay in payment of instalments, DLF cancelled their allotments in The Belaire and forfeited the booking amount Rs. 20 lakh each.

One of the CCI official said, “The two  NRIs say DLF had misused its dominant position by cancelling allotments arbitrarily. There is a competition angle in this case.
Commission is soon to take up ten more similar cases pending against DLF"
CCI could also initiate a probe against other real estate developers to unearth similar anti-competitive practices. Since passing the DLF verdict, the Commission has received up to 40 consumer complaints against real estate companies across the country.
CCI:  The violations and abuse of consumer rights  are:
1.  Builders issue advertisements for launching projects without the land being actually purchased, registered in their names and possession taken and without taking prior approval of competent authorities.
 2. Builders do not specify the date of delivery and consequential remedies available to the consumer in case of delay.
3. Builders do not specify the total area of the plot / flat /house, indicating clearly the carpet area and utility area. They do not inform buyers of built-in hidden costs other than the initial set price.
4. Builders do not  inform buyers about the progress of works and status of account of each allottee in a transparent manner.
5. They do not  post all the relevant information on the Internet and make them available in the public domain.
6 . There is no transparent and participatory mechanism put in place to deal with price escalations, if any.
7.  There is no fair, participatory and transparent mechanism to tackle any substantive and major changes in the project mid-way, before taking approval of the authorities for the revised scheme and commencing construction thereon.



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L&T Construction bags Rs 1,340 crore orders

The Indian engineering major L & T Construction had secured new orders worth Rs 1,340 crore in building and factories segment during the second quarter of this 2011-12  fiscal.
According to L & T Construction in a statement,  The company has secured new orders aggregating to Rs 975 crore for building a mixed use commercial development and construction of the main civil works for an IT campus from reputed customers,.
It has also received an order worth Rs 203 crore for the construction of a residential tower from a leading developer. Besides, it has secured add-on orders worth Rs 162 crore from various clients for ongoing contracts.
These orders further enhance the order-book of the company, which has already secured major design and build contracts in airports, IT parks, commercial and residential space.
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After DLF, Competition Commission targets Delhi builders

Recently, The CCI (Competition Commission of India ) dropped a bombshell that shattered the illusion that all was well with listed realty stocks. It fined market leader DLF Rs 630 crore for essentially duping home buyers using its monopoly power.
However, it is no one’s case that DLF is the only offender. The CCI is now spreading its tentacles further and has focused its attention of several Delhi builders who may have done a DLF or worse.
CCI has begun a reality check on other builders in and around the NCR (Delhi National Capital Region ) where the courts recently had to force builders to hand over land taken through dubious means.
The office of the CCI Director General has begun to collect information on major realty companies who have allegedly used “unfair” means to lure customers to buy apartments and then enter into one-sided contracts that favoured the builde
Informed sources said an investigative team was busy collecting samples of Builder-Buyer Agreements of many big builders in the NCR region. Among them: In Gurgaon - Emaar-MGF amd Unitech , In Noida - Supertech  Jaypee, Amrapali, and Lotus .
Strengthened by a crack team that has been deputed from the Law Ministry and stock market requlator SEBI, the CCI has formed a task force to check out major realtors in the Delhi NCR before focusing on the other metros of Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.
In Delhi, two builders who have reportedly been taken for scrutiny are Supertech and Amrapali, both of whom issued newspaper advertisements even before they got the land on which they were to build their apartments.
In the case of Supertech, the advertisement  inviting buyers was published on 3 March 2010, while in the case of Amrapali the ad came on 19 March. While Supertech got its land allotment on 19 March , 16 days after the advertisement was published – Amrapali got its land the day the advertisement was carried by newspapers in Delhi. Since advertisements have to be released to the print media at least a day in advance, it is clear that Amrapali had jumped the gun at least by one day.
Both the builders are top names in Noida and Amrapali has used cricket players Mr. MS Dhoni, Mr.  RP Singh as its brand ambassadors.
The CCI investigative team has apparently collected copies of newspapers advertisements which were issued even before the Greater Noida Administration allotted Supertech and Amrapali their land.
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DLF plans to cut debt by Rs 3,000 cr by 2012 March

According to India’s largest real estate developer, DLF's group executive director Rajeev Talwar, DLF plans to cut its debt by Rs 2,500-3,000 crore by the end of this 2011-12 financial year.

The company aims to reduce debt through the divestment of noncore assets, including hotels and plots of land that cannot be developed in the 5 five years .

DLF, which has been trying to bring down its debt for some time, reported an increase of Rs 100 crore in net debt in the first quarter of financial year 2012. Net debt touched Rs 21,524 crore in the first quarter of FY 2011-12, from Rs 21,424 crore as on March 31, 2011.

While the group has a divestment target of Rs 6,000-7,000 crore over 2 to 3 years from sale of non-core assets, it had raised only Rs 165 crore by June 30.

DLF would offload its stake in the hotel chain Aman Resorts, while keeping the Aman Hotel in Delhi with itself. Apart from Aman Hotel, earlier Lodhi Hotel, the chain has two other hospitality properties in India Aman-i-Khas and Amanbagh both in Rajasthan. Aman Resorts, founded in 1988 by Adrian Zecha, owns and operates a number of hotels across the world.


DLF’s joint venture with the Hilton group was also being considered for sale earlier as part of its non-core assets, Rajeev Talwar said, “We cannot offload it as it is on top of our mall (in Delhi)”. Other non-core assets to be sold include pockets of land in Gurgaon and some SEZ (special economic zone) areas across the country.

As for the interest burden, Rajeev Talwar said it had risen Rs 200-300 crore in 18 to 24 months. Hit by high input cost and rising interest rate, the company's net profit was down 12.81 per cent to Rs 358.36 crore for the quarter ended June 30 as against Rs 411.03 crore for the corresponding period last year.

The Competition Commission of India had recently imposed a penalty of Rs 630 crore on the company over charges of “abuse of market dominance and unfair trade practices”.

Source: Business Standard
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Credai Pune opens Virtual Realty Fair - e - PROFEST

The CREDAI (Confederation of Real Estate Developers Associations of India) Pune Metro Chapter has opened 'e - PROFEST  2011", Pune's Virtual Realty Fair. The virtual expo promises to showcase over 500 projects from Pune, Pimpri-Chinchwad Municipal Corporation and neighboring areas and will be online till 31 August 2011.

CREDAI Pune Metro Chapter began the online property show last year (2010) and experienced that its a big draw with prospective real estate buyers. The show has registered over 4,000 buyers already.

Pune has become a more lucrative option and people are willing to invest in Pune properties today.
 Mr. Satish Magar, President, CREDAI-Pune Metro said. "In this era of volatile global economic scenario, members of CREDAI Pune Metro have initiated an extensive programme on affordable homes. Many of our members have already launched housing schemes which match the budgets of an average middle income group, and we are confident many more will be launched in the near future"
Residential and Commercial Properties across the Pune Metro region costing 14 lakh and above are being showcased in 'e - PROFEST  . A customer can search for properties ranging from 1 BHK to 5 ZBHK also villas, bungalows and row houses with an ease of search experience. The show also has an online chat function that connects customers with the teams sitting in the developers offices to offer additional information.

Mr. Shravan Agarwal, Chairman -Exhibition Committee of CREDAI Pune Metro, said, "Pune as a market has always caught the attention of national as well as international property buyers and investors. ”
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SBI says no plan to launch teaser loans

THE country's largest Bank SBI (State Bank of India) said it has no plans to relaunch the dual or fixed-rate home loan products, popularly called teaser loans, as was done by its private sector rival ICICI Bank last week.

Mr. Pratip Chaudhuri SBI chairman said  “Right now, there is no plan for teaser loans,“ 
SBI's recent experience with the regulator  Reserve Bank of India (RBI), when the bank had argued that its dual-rate loan was not a risky teaser loan as was being made out by the RBI, Chaudhuri said, “The loan that we had earlier, in spite of lots of persuasion with RBI they called it a teaser loan.“

Mr. Pratip Chaudhuri also added, “Today, our home loan products are widely accepted and there is no shortage of demand for them.“
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