Friday, October 05, 2012

Robert Vadra's alleged flat in DLF Aralias

I did some googling go locate DLF Aralias where Arvind Kejriwal has alleged that Robert Vadra owns several flats. CommonFloor.com has one 5500 sq ft apartment for sale for 19.5 crores. If he own's 7 flats here, Vadra just has a paltry investment of 140 crores. It is also alleged now that several Congress , BJP and JD(U) MP's own super sized penthouses in this building. It is also no surprise that DLF has given these flats to these individuals at huge discounts to the existing prices. Apart from the middle-class in Delhi who can afford these flats is anybody's guess. Here is the link to the advertisement, probably owned by some politically connected individual.

In a very charitable move DLF loans crores of rupees, interest free to Mr Vadra who then buys DLF's properties at throwaway discounted prices. I wish DLF is charitable to every Indian. Every Indian will be indebted to them for the rest of their lives. In fact the Income Tax and company affairs board should make it legal for builders to make unsecured interest free loans to the Indian citizens so they can buy their properties. This will boost their bottomline and they can recognize revenue for the flats which are sold and thereby boost their stock prices. In all seriousness SEBI would need to question the auditor of DLF to explain the fudging of the books. The "Too Big to Fail" individuals are now facing their moment of reckoning.

42 comments:

el toro said...

I am not sure what the problem is. Like many other honest Indian businessmen, Mr. Vadra too has made money and invested the same in Gurgaon.
It is common between high profile industrialists to give and take loans to each other.
It is a clear case of people making a mountain out of a molehill.

Vik said...

if a private company has given loans, there should not be any problem. DLF is a public company which has sold stock to Indian and Foreign investors. Imagine Microsoft giving $100 M dollars loan to Obama's brother-in-law to buy Windows software worth $100M. I'm sure this is common practice in Indian business, however when it done by the dynastic son-in-law it will make headline news

Capt. Ajit Vadakayil said...

Hi,
I have been posting about Robert Vadra’s illgotten DLF millions more than 2 years ago. We all know what his father Rajinder Wadhera was worth and what he did.
His own class mates tell about his poor financial condition in school.
Latest ones are --
Punch into google search—
IS RAHUL GANDHI FIT TO BE PRIME MINISTER - VADAKAYIL
Poor priyanka— she was unlike her “not so bright” brother. Uncle Quatrocchi pushed her into a hole by introducing her to Robert in his house.
Capt ajit vadakayil
..

aam aadmi said...

Till now media houses were scared of running the story, even opposition parties didn't raise it, Only Dr Swamy did. Now that Arvind Kejriwal has come forward at least this story will get some primetime.

Anonymous said...

I think this is the best kept "open secret" ever. Everyone knows that KP Singh walks into MMS's chamber demanding more stimulus! KP is a die-hard stimulus junkie...And Vadra has been known to be DLF's sleeping partner. I think if one looks at all the major stocks comprising realty index, all of them will be politically connected. Sometime back PC Chiddu also wanted to give loans to poor real estate players who just refused to bring down the prices..I think its time to get some pop corn, the fun just may be about to begin.

Anonymous said...

Ya! India is land of honesty. Land where investing in real estate will make you millionaire in few years and billionaire in a decade!

Why are so many Indians going to school - what are they going to do? go to usa? become a doctor? for what? earning money - right! So why go through pain, solution is simple, just buy RE and watch your dream getting fulfilled without any pain. Well, need more for RE - right? simple - Banks are lending.

Anonymous said...

Around the world, the greatest bubble by far occurred in Shanghai, up 525% since 2000, and in China in general. (China’s supposed to have a soft landing?) Mumbai saw a 400% bubble, Dubai 300% and Seoul 205%. The greatest bubble in developed-country cities starts with Brisbane, Australia at 210% followed by 180% in Miami, 170% in L.A. and 165% in Vancouver. There are many cities that could see real estate drop 70% to 85%!

Article Link

Anonymous said...

I think the bubble will burst after US elections. There is a lot of fudging going on like the US UE report that came out today. After the elections, EU is on their own and China is toast. Stocks will be in depression all of 2013.

Too good to be true in India. Last week one of my neighbour from India called and wanted to apply for US E-1 investor visa. He has never worked all his life and made a small shop in front of his house that fetches him 10000 rupees a month. Now he wants to sell the whole house with shop and migrate to US. The price of the house with shop is a whopping 4 crore. That thing was worth like 30 lacs just 6-7 years back.

Well, I told him to sell and take the profit. Put the money in savings annd eat 40 lacs a year of interest and rent and spend the money on kids education. He asked where would he live. I said, do not come to USA as he would have to work and life is not easy in US. Instead he could rent a place for 3-4 years and would be able to buy back his own place in a a few years for like 40% of todays price. He just might do the above.

Anonymous said...

^^^ please ask your friend to migrate to USA. They need 'investors' like him - non-productive and has tons of money to invest. I'm sure USA folks will make good use of this opportunity.

Anonymous said...

Anon@1:04 is talking about advice which will benefit his friend. Anon@1:31 is giving advice which will benefit US..I don't know why...

I agree with Anon@1:04, India will throw up amazing bargains when this massive bubble explodes to smithreens...and then the cost of living will also be much lower in India. Plus for kids education etc. you can get value for money in India. US education is in a huge bubble right now.

Anonymous said...

There is no freaking way RE prices are retreating in India.
Anyone who thinks so is living in a fool's paradise.
I believe the biggest criteria in justifying the prices of an asset class is affordability.
If people are still able to buy at current and future levels that means there is no bubble in the first place.
The buyer still sees inherent value in buying RE whether for use or as investment. Same is the case of Gold.
The appreciation rate may slow down a bit but there is not going to be any so called crash.

Anonymous said...

And in other news, Netherlands home prices are now at 2004 levels. http://online.wsj.com/article/SB10000872396390444443504577603142722555860.html?mod=rss_economy

Netherlands has a higher population density than India.

Anonymous said...

^ India is different, political-builder mafia, cash rich, NRI, IT guys etc.

Anonymous said...

Meanwhile in Kurdistan:
http://www.rudaw.net/english/kurds/5258.html

Read that article. It'll appear very familiar.
India is different, eh?

////////////

ERBIL, Kurdistan Region — Majid Mohammed Amin appears frustrated, waiting for a “miracle” to rescue him from the stress of his life. Although he uses his muscles to build houses for other people, Amin and his four-member family do not have a home of their own.

As a day laborer, Amin has a limited and unreliable income. If he is lucky, he might make around 500,000 Iraqi dinars (approximately US$400) a month; he has to pay around 70 percent of that to rent.

He has not been able to pay his rent for the past two months, leading his landlord to threaten to kick him out. This has brought him a lot of worry.

“He now wants me to move out,” said Amin. “If I can’t pay this month’s rent, I will have to leave.”

For some, it was a dream come true, but Kurdistan’s staggering rise in real estate prices over the past several years has been a nightmare for people like Amin and his family.

.....

Zulal believes the disparity between income levels and real estate prices in Kurdistan is a sign of a real estate bubble. In fact, the disparity is significant.

...

Anwar Anaid, a professor of political economy at the University of Kurdistan – Hawler, attributes the rise in real estate prices in Kurdistan to a “herd mentality.”

“As soon as there is rise in prices, large numbers of people enter the market. And normally the cultural tendency is that people think the price increase will go on forever. So people come in and this has a major impact on the rise in prices,” said Anaid.

.....

Amid all this activity, some warn that the lack of monitoring over the financial and business sector in Kurdistan has led to people using housing as a way to cover up “illegitimate” revenues.

“Many people have made lots of money. I can say some of that money has been earned through political influence. Some want to launder money and the property sector is the easiest way to do that,” said Kardo Mohammed, head of the Gorran parliamentary bloc, the largest Kurdish opposition group.

He believes the construction of housing complexes and towers around Kurdistan is not a sign of “real” growth, but of a “superficial” one.

Kurdistan’s urban centers now have dozens of housing complexes built by investors. They have names such as Italian City and English, German or American Village to attract customers.

.....

“I would be grateful if I could even have a room. I am not asking for an apartment or a nice house,” says Amin. “I will be grateful for just a couple of rooms or a room that my children can fit in, just to no longer live as a tenant.”

//////////////

SKG said...

Everybody must buy a home to live and a flat for investment purposes.by the end of next year we all will be rich and bathing with money-:)

-SKG

Anonymous said...

SkG,
We should definitely buy a lot flats. I think everyone should buy one to live and 4 more to invest as RE prices would double in the next 2 years.

I sold mine home last month, renting now and waiting for the massive crash coming our way. Good luck greedy investors.

Anonymous said...

Cricket players, Bollywood mafia, Ministers and few Companies have focked 99% of the Indians. You, the 99% created the monster by supporting them and now it is time to unsupport them by spitting on them, in public. You see them next time, just spit on them.

Anonymous said...

^^^ Are you asking to spit on GODS? some are self made Gods, some we made them Gods.

If these are Gods, then who are monsters? I'm confused... as who is who.

Anonymous said...

I know one guy who sold his ancestor's property and recently bought his third flat in Mumbai. He is NOT going to live there because he already has a place to live. I asked him, why don't you deposit the money you have in the Bank and earn good 80K rupees interest per month rather thann of giving out to rent for just 25K per month? His indirect anwser was he could not keep that much amount in the bank because of the amount of black component in the transaction when he sold his ancestor's property was more.
This only illustrates that people are pumping money back to Realty because they have no place hide there B money.
My friend does not worry much if realty prices goes down as long as he gets 27K rent per month(that is 66% less than what he would usually get from Bank Deposit interest).

Anonymous said...

@Anon - "This only illustrates that people are pumping money back to Realty because they have no place hide there B money."

You confuse symptom and cause.
Black money is the symptom not the cause. Easy credit and expectations of forever price growth are the causes.

Anonymous said...

http://www.firstpost.com/politics/politicians-and-real-estate-why-are-we-missing-the-big-picture-482696.html?utm_source=MC_TOP_WIDGE

And the public continues to turn a blind eye.
ppphhhhffff....
Who cares what happens to the society and the country as long as my own family is fine.

Anonymous said...

^^ That's why we have blogs and internet media. This is new era of journalism. People can be unmasked without anyone's consent, views can be expressed more freely (I guess).

Indians live in very small pond, they never think out of box. They are in comfort zone confined within four walls of their house. All they know is to clean their house and push garbage to street or neighbors premises. Who cares as long as my house shines, it's your problem to clean yours even if I pushed garbage to your doorstep.

Anonymous said...

If there is one rotten apple, it's easy for rest to throw it out.

When the entire basket is corrupt what do you do?

Name one politician who hasn't been involved in this con game. Hell, even erstwhile reputed business names like Tata and Godrej entered into housing sector seeing the free money that is there for the taking...

Not justifying the looting but we need a full scale cleanup perhaps a Supreme Court + Military takeover so that rule of law can be restored and justice be ultimately done.

Anonymous said...

^^^ Correct! In India everyone is corrupt (willingly or unwillingly) including aam admi.

I ask you to show me single person who doesn't do in his all power to earn black money to cheat on taxes. Businesses do this all this time, salaried guy is somewhat tied up as there is no room for black money... but he still tries wherever he can to use loop holes - from creating fake expenses receipts to creating fake side businesses that is running in loss.

Question is 'Can you beat the big players' if not, then sulk about corruption, black money... if you can beat them, then enjoy being rich with lots of free money (non-taxed).

aam aadmi said...

Not justifying the looting but we need a full scale cleanup perhaps a Supreme Court + Military takeover so that rule of law can be restored and justice be ultimately done.

What a load of rubbish, get a life. You guys haven't seen military takeover that's why, it's much worse than what you currently experience. These military guys don't descend from heavens.

I find this line of thinking so futile and common that it's depressing, it's the same as waiting for some incarnation or rapture. I also find it weird that people are willing to embrace a military takeover but are unable to make small changes in their life which can really make a difference.

It's actually not that hard, stop buying all the useless commercial sh*t that companies make which you don't need and the house of cards will fall on it's own and it all begins with selling off your TV.

GSM said...

I ask you to show me single person who doesn't do in his all power to earn black money to cheat on taxes. Businesses do this all this time, salaried guy is somewhat tied up as there is no room for black money... but he still tries wherever he can to use loop holes - from creating fake expenses receipts to creating fake side businesses that is running in loss.

Its because of the nature of the laws, so complex that a honest person cannot follow it completely forcing him to pay bribe. On the other hand with full of loop holes that any smart person can take it for a ride legally. It should be simple enough to be interpreted and easily enforceable.

Take the example of exemption of HRA and Home loan for salaried class. I haven't seen a single person who doesn't avail either of them. Infact, you can claim HRA by paying rent to your parents!! What is the use of processing such a deduction when everyone is availing it?

To attract investment subsidized/free land allocated by the govt. But smart industrialists/politicians float fake companies or junk subsidiaries to grab land from farmers (there is also a law that agricultural land cannot be bought by non agricultural person for other purposes. Only Govt can grab it).

Well, if the laws were to be simple, you will not have any of these restrictions and that should reduce a lot of corruption.

Anonymous said...

What a load of rubbish, get a life. You guys haven't seen military takeover that's why, it's much worse than what you currently experience. These military guys don't descend from heavens.

Absolutely right. Take a look at Adarsh housing scam which was fully exposed by the CAG. Top military folks were hand-in-glove with politicians and builders.

I would guess that majority of lawyers and judges are corrupt too.

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