Monday, August 31, 2009

New real estate bill worries builders

NDTV.com reports. Will this regulator be as toothless as SEBI.  One more department for the builders to grease. All the regulator needs to do is crack down on the black money component. Everything else will fall into place. Who will bell the cat ? Not anytime soon is my guess

The government is all set to tighten the noose around the realty industry. Under the provisions of the new real estate bill, developers may have to face stringent reporting norms.
Besides recommending a regulator for the real estate sector, the new bill also mandates the auditing of account books every quarter. NDTV has learnt that the audit of real estate companies will be conducted by auditors approved by the regulator.

As a result, the realty sector is clearly worried saying that quarterly audit amounts to overregulation.

But what does the government hope to achieve through a real estate regulator and quarterly audits. It is believed that by doing this the government is looking to keep a track on sale of properties besides having clarity on developer’s land bank. The government is also looking to overvaluation of land in accounts.

For the realty sector which is used to work in an unorganised fashion, the real estate regulator is expected to bring in proper regulation.

The bill soon coming up for clearance at the Cabinet also gives the regulator power to cancel the license of a property developer on violation of their guidelines – a step welcomed by many experts who feel that it is high time the government steps in.
It remains to be seen how far the law could be implemented, if at all it gets Cabinet approval as land is a state subject and would need active participation from the states.

26 comments:

Anonymous said...

Just check and find out the reason behind the "outstanding" performance posted by the Indian IT Companies on the backdrop of the global recession. In the name of "operational efficiency" they are sucking out the blood and forcing the people to resign. The immediate toll of these unethical practices is clear. The most of the IT guys are not able to honor their monthly financial obligations due hard hit salaries and mounting debts of all sorts e.g. Home loan, car loan etc.

The shameless honchos of the IT companies are spreading the false news of fresh recruitment and the growth prospects when they are busy with firing the people.


Wipro techie jumps to death
27 Aug 2009, 1517 hrs IST, PTI

Few of the comments
Wiproite, USA, says: Wipro HR doing this to build more profits to their chairman. They don't have any ethics. God will not leave them sure they will get punished sooner or later. As a Wiproite I know many people were asked to put papers otherwise they will be sacked and will not get proper releaving only for this reason they are putting papers. Band C2 and above people in Wipro are enjoying life at the cost of B1,B2 and C1 band. Govt pl act on ...
[31 Aug, 2009 1449hrs IST]

Wiproits, Bangalore, says: In my project as well for few of my colleague HR & Manager has asked for a meeting and then forcefully made them write their resignation letter. Why not highlight all this to government & public and let them know about the crime Wipro is committing, before it is too late and few more suicide attempts are recorded.
[31 Aug, 2009 1227hrs IST]

Sacked Wipro employee alleges harassment
By siliconindia news bureau
Thursday,20 August 2009, 19:47 hrs

Bangalore: An ex-employee of Wipro has filed a harassment case with the Electronics City police against some senior officials of the company after his services were terminated, reports Bangalore Mirror. Ram Manohar G, a native of Hyderabad, has alleged that he was confined to a room and harassed by his seniors, and was finally forced to quit. The 37 year old techie had been working as a team leader in the organization for the past 15 months.

According to Ram, he joined Wipro on Dec 3, 2007 and was unlawfully sacked on March 10 this year. Earlier he was working with MindTree in Bangalore. In his complaint, he alleged that he was confined to a room for a couple of hours at a stretch on several occasions by the higher-ups, and asked each time to resign. "It all started when recession hit the IT business.

Anonymous said...

Buddies Older Chembur Hunter here.
Needed some change of plan - Due to some parenting and spouces job issues I find it difficuklt to leave navi Mumbai in next 5-6 years( My baby child is taken care here!) Now biggest joke is that this forum predicted fall of RE at palm beach and navi mumbai long back..
Now I am looking for big 3 BHK with 2 Stilth Parkings ( not considering aminities) @ 45-50 L Outright -and you know
I AM NOT GETTING IT!!! NO WAY!!!
So great pundits- when your 70% fall is going to happen - so that I'll sit on my 50 L and can buy place in Bandra?

Anyway noone pointed out any matahematical mistakes in my earlier calculations WHYYYYYYYYYYY??? So what will be fall % ge!!And when someone gave a lot more fundamentals about academic insties in Mumbai ,why he is not coming out of closet and tell us from which great insti he is???

Anonymous said...

Anon above:
You are a big idiot.

People here tell what they feel and not make predictions about time. In fact burst would have happened by now if the Govt. intervention was not to the extent as we see. Stimulus and freebies for builders/banks.

Anyway, your wish to have 50% down prices is in process and would take 2-3 years. If you have cash, put it in bank and eat its interst. No idiot would buy in this market and catch a falling knife. Wait for the slaughter in the stock market today in India.

Anonymous said...

Anon:
Nobody is forcing anyone to buy or sell. If you have 40L black, go ahead and buy your dream house. Look at it from the builders end, they are waiting like patient wolve'es for their prey. If you are ready to lose 46% if there is a 20% decline be my guest and buy it. You could be the brave one we would be taking about in 2012

Anonymous said...

What is your montly rent ?

Anonymous said...

Tech Mahindra modifies offer asking recruits to join BPO

Kolkata,Sep 2,DH News Service: Wednesday 2 September 2009


The dream of several engineering graduates who were promised job as technical associates in Tech Mahindra more than 18 months back, has crashlanded after the company sent a terse communique on Monday, asking them to join in its BPO division.

On August 28 last, the company through an e-mail, informed all recruits that it would not be possible for them to hire us as technical associates. But if we are keen to join their BPO division, we can do so at a consolidated monthly salary of Rs 5,000 and the deadline set for our response was August 31

Meanwhile, some of the students who had already completed their training session with the company a year back, were reportedly sent on compulsory unpaid leave for six months and their leave was extended for six months. “And now, they’ve been asked to join in the BPO,” the student said.

shailesh said...

Sharing Queen Elizabeth's deafness

In these columns, I repeatedly said that 9% GDP growth in India was an unsustainable by-product of the biggest global boom of my lifetime, and that the global tide would one day fall and lower all boats, including India’s. In September 2007, in a column titled ‘Recession is a probability now’ I wrote, “Journalists do not have a good reputation for predicting recessions. Indeed, they are reputed to have predicted 10 of the last three recessions. A month ago, I wrote that the US had a 33% chance of going into recession next year. Events of the last month have, in my view, increased the chances to over 50%.”

Why then did so few anticipate a hard landing? Sadly, human euphoria during a boom is hard to shake. All humans — householders, businessmen, politicians, financiers — love bubbles. They love to see their wealth skyrocketing, they love to see the proliferation of jobs and income. Barring a few naysayers, nobody wishes to focus on the inevitable downturn, let alone check the boom. This is why booms and busts are inevitable. They reflect the human condition. Most of us are so much like Queen Elizabeth.

Anonymous said...

Anonymous @ 1:31 PM
No issues of montly rent owe 2 nos 1 BHK One in Sanpada and 1 in Kharghar ..so hat is not an issue..
Need to buy 1 property within a year due to capital gains issues.Also needs bigger place ( 3 BHK will be good as I can have my home theatre there) with 2 parkings,pfeferabally stilth

"Old chembur and new Vashi Hunter"

anyway In goregaon,Dahisar,Borivali,Bandra,Chembur prices are slightly increasing

Only in vashi saw slight correction.

Anonymous said...

does one need to pay transfer charges to builder for resale property. soceity is not formed, and property is alreday registered.
loan is not required.
in this case, is there any need to pay transfer charges to builder, or can get transfer once society is formed. can builder create any problems ?

Anonymous said...

Builder cant do a shit, take a power of attorney from the seller to be safe.

Bindas Bhai

Anonymous said...

Thanks for the information. Yes would definitely take the POA from seller.
Anyway , still awaiting your mail regarding some good properties at my email address BB, here it is again cushioncove at gmail . com. please mail me today. thanks.

Anonymous said...

Bindas Bhai,

What is your opinion on buying a flat at Chedda Nagar, Chembur. Are are any legal issues withe Chedda Nagar. Heard that it is difficult to get loans for this area.

shailesh said...

Some interesting observations,

Times Property Exhibition

The average cost for a residential apartment in Mumbai worked out to around Rs. 66 lacs. Assuming the end buyer would opt for home loan equivalent to 80% of the total property cost, the target customers would fall in
the monthly income bracket of Rs. 1.25 lacs per month and above.

When the demand in the market is for 1BHK - 2 BHK, more and more 3 BHK and above units are coming up in the supply. The current strategy of the builders appears to be targeting the high end of the market, which as per the average property rates exhibited in the exhibition, translates to an individual with an annual income of Rs. 16 lacs and above; the reality is that more than 90% of Mumbai’s population is in the sub 12 lacs (annual) income bracket.

While in the last couple of months, the home loan interest rates have moved southwards, the property rates have moved northwards, thereby negating whatever benefit could have accrued to a home-seeker. With the budget not providing any fresh stimulus to the real estate sector, it is high time that the builder community learnt to first help themselves.

Vik said...

Shailesh :
Thanks for the posts. The research house has made some fair observations. In a city of 2 crores, there were 6000 registrations. I get more traffic on this blog in 1 week then they do in a dedicated event which is hosted in a 5 star hotel. It just shows the mismatch in pricing in Mumbai. Just as rich folks got miked by Madoff and company, here too the rich will lose their shirt if they take a loan to buy any of these overly priced properties. The builders are completely disconnected from reality.

Bharat said...

Hi Vik,

I know you did a comparative analysis of buy/rent with a cost/benefit in rupee terms.

I came across this video and since there has been lot of nonsense from the so-called "bull" lobby about home owner's equity and capital appreciation, I thought this video might be food for thought in some future post -

http://www.youtube.com/watch?v=OCkqUyA--ro&feature=related

Regards.

Vik said...

I'll make a new post of this video. Good link. thanks

Bharat said...

Hi Vik,

Similar to the analysis you did and maybe some interesting twists to it. Some more fodder for the next cannon..

http://www.youtube.com/watch?v=YL10H_EcB-E&feature=fvw

http://www.youtube.com/watch?v=QA2TBiIsdT0&NR=1

Anonymous said...

The Likes of BB are screwed.

Swiss Banks to Reveal Accounts

Anonymous said...

TCS aims 10% revenue from government projects; to hire 25,000 people
3 Sep 2009, 1725 hrs IST, PTI

Print EMail Discuss Share Save Comment Text:
CHANDIGARH: Finding immense potential in government projects, leading IT company Tata Consultancy Services (TCS) is aiming 10 per cent of its
TCS
Performance of top IT cos in Q1
India's top 10 BPOs
The rise of multinational IT in India
Key facts on India's IT industry
total revenue from these projects in the next three years, besides, adding 25,000 employees this year.

"Currently, our revenue from government projects is very small and we want to raise it to at least 10 per cent of our total revenue in the next three years," TCS Vice President (Head Global Government Industry Group) Tanmoy Chakrabarty said here today on the sidelines of an E-revolution initiative organized jointly by Punjab, Haryana and Chandigarh.

TCS last year recorded total revenue of $6 billion and it expects to increase it to $10 billion in the next few years. Out of the total revenue, the domestic market has a share of 70 per cent and the rest comes from the global markets, he said.

TCS would also hire 25,000 more people this year to support its ongoing and upcoming projects. "We have an employee strength of 1.45 lakh people and we want to add 25,000 more people this year," he said.

In the domestic market, the company was developing a Rs 1,000-crore 'Passport Seva Project' to provide speedy passport delivery services.

TCS is also looking to tap opportunities to be offered by Unique Identification Database (UID), headed by Infosys former Co-Chairman Nandan Nilekan. "We would like to avail opportunities to be thrown by UID projects although they are still in early stages," he said.


Also Read
→ Tata Sons gets Rs 2,000-cr dividend booster from TCS
→ TCS may follow multiple power-sharing structure
→ TCS, Infosys, ONGC, Wipro, NMDC top gainers in last 100 days
→ I will make TCS more visible: S Ramadorai
→ TCS eyes $1 billion Indian revenue in 3-4 years


TCS is also keen to engage in E-Panchayat projects, which are expected to be rolled out by the Ministry of Panchayati Raj.

"The ministry is considering launching E-Panchayats across the country in order to bring transparency and efficiency in the system...we think in the next two years E-panchayats will be a reality," he said.

Besides looking to capture government projects here, the company is also bullish about government projects in overseas markets.

The company has decided to tap such projects in emerging overseas markets such as China, Middle East, Africa, US, Latin America and South East Asia.

"We will be tapping new overseas markets for carrying out IT projects as there is a huge potential available there which needs to be exploited," he said.

Currently, the company is carrying out Core Banking solutions project for the world's largest bank in China. "It is one of the biggest projects for us to launch Core Banking for the Bank of China which has the largest network in the world," he said.

Moreover, TCS is also in the process of digitizing the taxation process for the government of Uganda.

Anonymous said...

India Real Estate Facing An Estimated 4 Year Depression

Despite a growing economy, the Indian real estate market faces a long list of challenges. A lack of mortgage financing, low rental yields, and stalled development projects are just some of the reasons India is looking at an estimated 4 year depression in housing. For more on this see the following article from Global Property Guide on the current state of India real estate.




House prices in big Indian cities continued to fall during the first quarter of 2009, having begun to slide in 2008. Households are deferring purchases in anticipation of further price falls. Property developers are trying to entice buyers through price cuts and other incentives – usually to no avail.

In an April 2009 survey, a resounding 99% of residential property brokers in Delhi, Mumbai, Bangalore and Chennai agreed that prices had dropped in Q1 2009, up from 78% reporting price falls in Q4 2008, according to Edelweiss. Price falls of as much as 30% in Q4 2008 from the previous quarter were reported by Jones Lang LaSalle (JLL).

Developers face funding shortages due to the stock market crash of 2008, and fleeing foreign investors. This has led to residential project delays, and cancellations.

Indian housing statistics tend to be weak, but the National Housing Bank (NHB) now has a semi-annual residential property price index, which showed a significant slowdown in 2008 and some dramatic price declines.

A fall in Bangalore’s house prices of 27% in 2008 (-31.2% in real terms).
In other cities the slowdown has been less dramatic:

In Delhi, house prices increased by 4.8% during the second half of 2008. In real terms, house prices declined by 1.6%.
Mumbai’s house prices rose 4.5% during the second half of 2008. In real terms, they fell by 2%. During the previous half year (H1 2008), prices had increased by 12% (6.7% in real terms).
Housing bubble trouble

Indian house prices rose rapidly from 2002 to 2007. Strong economic growth and urbanization supported house prices, while in city centers a housing bubble was encouraged by inadequate infrastructure, lack of planning and antiquated land use laws.



......

http://www.nuwireinvestor.com/articles/india-real-estate-53534.aspx

-- Kannan

shailesh said...


Affordable realty a big hit in Bangalore

Anonymous said...

IT companies will see their real strength by May next year, I mean May 2010.

WITH MANY LAYOFFS, THE TIDE IS CERTAINLY GOING TO TURN IN A VERY BIG WAY.

K.Gokul.

Anonymous said...

shailesh kutte, kya bakwas bol raha hai.
pichle 6 mahine se rates upar ja raha hai madharchod
tu yahan pe logonko anaab shanaab bak raha hai behanchod

Anonymous said...

Anon above...
Where from you got this garland of holy words for your friend...!!!
Thanks for such a great honour :)
By the way, whatever he is telling us here is absolutely true... the situation is going to get worst, so better you get rid of your inventory or stake in real estate at whatever price you get.
Indian RE lost all directions, probably a new dimension is going to born...

Elina Joshef said...

The property potential has to be very high to get a proper and ethical revenue sharing. It would not be very unfair from the end of the investor to verify the potential of the property before proceeding. Being the promoter better to verify the point of your own to pass the verification of the investors and can have the faith as well.

rajni sharma said...
This comment has been removed by the author.