A stagnant property market, tightening of lending by banks and failure to raise money through public equities are forcing real estate developers to look for alternative options to raise money.
Indias benchmark Realty Index lost more than half its value this year. With the heat being turned on, realtors of all sizes are pursuing different finance routes. Big players are looking at private equity funds to complete pending projects, while small developers are turning to the larger construction companies to sell theirs.
This is really a tough time for the realty industry, Naveen Raheja, chairman of the Delhi-based Raheja Developers told IANS. On the one hand developers are hit by a cash crunch and, on the other, sales are dropping.
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New Delhi, January 26: AFTER barely managing to fend off regulation from the Elite Ranji group this season, Delhi cricket is staring at an empty cash cupboard. The reason: DDCA officials admit the organisation is virtually broke.
Consider this:
* Ranji coach and 1983 World Cup star Madan Lal has not been paid his fee for the season—Rs 4.5 lakh, as per the contract
* Delhi’s Ranji players are yet to get their match fees for the last four matches—Rs 21 lakh
* Assistant coach Maninder Singh Jaggi and manager D S Bawa are still waiting for the Rs 4 lakh they were
As the sealing of commercial establishments in Delhi continued on Tuesday, smaller enterprises like a magazine called Biblio face the heat.
It was started eleven years ago to raise awareness of literature and the arts in India. And with its bi-monthly book reviews, articles and satire, it was one of the country's few literary magazines.
Biblio was forced to shut shop on the August 28 and its employees were told to vacate the premises in one day. Since then, the magazine that is based out of a small street in Vasant Kunj, is struggling to stay in business.
Grappling with a slowdown across segments, the Indian property market is heading towards the next phase of consolidation. Liquidity crunch in the real estate market is beginning to drive many mid-sized and small developers to scrounge for cover.
Many want to liquidate their land and incomplete projects by selling them to bigger developers or private equity players even at lower valuations. Whats forcing them to take this step is a stagnant market, with property rates undergoing major correction in some cities. Around 15 deals in real estate sector have fallen through in the past two months with investors developing a
Hoteliers line up to check into A’bad
Call it the megacity effect if you will, but after cold shouldering Ahmedabad in the past, hoteliers are queuing up to check into the city with star-category projects.
Smelling big bucks, biggies like Radisson, Oberoi, Intercontinental, Taj and Apeejay are understood to be scouting around for options, even as local hoteliers from Ahmedabad, Surat, Rajkot and Vadodara are also making a beeline for the city.
What prompted a scramble for hotels in a city which was being passed over by biggies after the earthquake and riots? "With average occupancy of over 85 per cent
Just one tax measure - the banking cash transaction tax (BCTT) - has unearthed concealed income worth Rs 3,600 crore in Delhi. Other cities too have concealed income figures, though they are nothing in comparison to the capitals.
The income-tax department found such accounts in various banks in the capital, including the Federal Bank, the Punjab National Bank, and the State Bank of Mysore. Over 355 banks across the country are covered by the BCTT, under which they are required to provide monthly returns, listing the number of transactions and the taxes paid.
Between June 2005 and March
