Jammu & Kashmir never merged with India: Omar Abdullah

SRINAGAR: Jammu & Kashmir chief minister Omar Abdullah on Wednesday reiterated his party's stand that the state's accession was not a merger with the Indian Union in 1947. 


"While all the states acceded to the union of India and then merged with it, Jammu & Kashmir only acceded and not merged. That is why we have special status, our ownconstitution and the flag,'' he said while talking to a European Union Delegation. 

He said the Kashmir issue was linked to the partition when future of all states except Jammu & Kashmir was decided and underlined the need for a sustained dialogue with Pakistan and separatists. 

Omar said there were diverse views regarding the issue. "While one extremist view is for cession, the other is total merger of the state with the union of India,'' he said. 

"Unless the process of dialogue is started with a view to find out flexibility in both of the views and carve out a roadmap of addressing the issues, the position will not change.'' 

He said the Constitution provides a framework for dialogue with separatists.

source:- http://economictimes.indiatimes.com/news/politics-and-nation/jammu-kashmir-never-merged-with-india-omar-abdullah/articleshow/23085011.cms?intenttarget=no

What would happen if the US government shuts down?

A partial shutdown of the US government will begin at midnight on Monday if Republicans and Democrats fail to agree on a funding bill.

In a government shutdown, spending for essential functions related to national security or public safety would continue along with benefit programs such as Medicarehealth insurance and Social Security retirement benefits for seniors.

But civilian federal employees - from people who process forms and handle regulatory matters to workers at national parks and museums - would be furloughed.

The last government shutdown ran from Dec. 16, 1995, to Jan. 6, 1996, putting about 800,000 federal workers on furlough.

Here is a roundup of the expected impact of a shutdown.

FEDERAL WORKERS

Up to 1 million US federal workers could face furloughs without pay beginning on Oct 1.

Most federal agency workers would be furloughed, but a small number of "excepted" employees must continue to work. These include security workers such as air traffic controllers and prison guards. Congressional staffers could work if requested by the lawmaker or committee that employs them.

Congress has previously paid federal workers for their furlough days.

Federal workers could face penalties if they tried to do any work during the furlough.

FINANCIAL MARKET CONSEQUENCES

Apart from potential market swings, companies hoping to raise money in an initial public offering could face delays.

Businesses will still be able to file certain documents to the Securities and Exchange Commission, but the agency said on Friday that processing and approving applications will be discontinued during a shutdown.

"Capital-raising will have a huge hiccup if the SEC shuts down as it has said," said Eric Jensen, a partner with law firm Cooley LLP in Palo Alto, California.

Drug companies waiting for a decision from the Food and Drug Administration could also see delays. The FDA said it would continue "limited activities" related to programs that are paid for by user fees from drug approval applications.

GOVERNMENT CONTRACTORS

A shutdown lasting less than two weeks would not hurt big defense contractors, which can survive temporarily without federal contract payments, said ratings agency Standard & Poor's. But a longer shutdown could weaken the financial profiles and liquidity positions of smaller defense contractors.

"It is felt a heck of a lot more keenly by small contractors," said Bradley Wine, co-chair of Morrison & Foerster's government contracts practice.

MEAT INSPECTORS

Meat inspectors for the US Department of Agriculture, considered necessary to national safety would stay on job.

source:- http://economictimes.indiatimes.com/news/international-business/what-would-happen-if-the-us-government-shuts-down/articleshow/23294616.cms

SFIO probe calls Rs 1,700 crore Tata-Unitech deal in 2007 dubious and disguised

NEW DELHI: The Serious Fraud Investigation Office (SFIO) has strongly questioned the purpose of the Rs 1,700 crore deal in 2007 between the Tata Groupand Unitech, bringing to life a controversial episode from the past that the salt-to-software conglomerate might have thought was dead and buried. In an initial report submitted in April this year, the Mumbai unit of SFIO has come to the conclusion that the money was meant to enable UnitechBSE -3.38 % Group companies to pay for telecom licences issued in January 2008, rejecting the theory put forward by the Tatas and Unitech that the funds were meant for real estate transactions in Gurgaon.

These findings are the outcome of a wider investigation into the affairs of Vaishnavi Corporate Communications - a PR-cum-lobbying outfit owned by Niira Radia - that was ordered last year by Veerappa Moilywhen he was the corporate affairs minister. (Moily is now the oil minister.) Moily told PTI on July 6, 2012, that he had ordered an SFIO inquiry after receiving a report from the Mumbai unit of the Registrar of Companies.

The report describes the transaction between Unitech and Tata Realty as "dubious" and "disguised as a land deal". It also alleges that the names of eight Unitech subsidiaries were changed to "conceal their identity". These initial findings, which have been reviewed by ET and are part of a wider report into Vaishnavi, are currently being analysed at the SFIO headquarters in Delhi, according to people familiar with the matter. "I do not want to discuss the report," said SFIO Director Nilimesh Baruah, when reached on his mobile. He did not respond to further queries seeking details on whether the report had been accepted or rejected by SFIO headquarters and on the next course of action.

Responding to emailed questions, Corporate Affairs Secretary Naved Masood said a final report was awaited soon. "Based on a report furnished by the Registrar of Companies, the Ministry of Corporate Affairs appointed officers of SFIO as inspectors to investigate into the affairs of Vaishnavi Corporate Communications and eight other companies under Section 235 of the Companies Act, 1956. Final report of the investigation is awaited shortly. Appropriate action would be taken after detailed findings of the investigation are available," he said.

Corporate Affairs Minister Sachin Pilot did not respond to an email sent to his office. When contacted on his mobile, he declined comment. The Tatas and Unitech have firmly denied any wrongdoing. They also pointed out that the Central Bureau of Investigation had already probed the deal and found nothing that could be used in court.

http://economictimes.indiatimes.com/news/news-by-industry/telecom/sfio-probe-calls-rs-1700-crore-tata-unitech-deal-in-2007-dubious-and-disguised/articleshow/23274301.cms?intenttarget=no

Realtors hope to clear inventory on freebies, festival sales

MUMBAI: Realty developers are hopeful of clearing a large portion of their inventory pile-up during this festive season by luring in buyers with freebies and discounts, even as they sit tight on declared prices, said industry experts.

"Higher interests and the overall slowdown has led to a significant build-up of unsold units with developers in most of the major realty markets over the past few quarters, adversely affecting cash flow and impacting new project launches," KPMG India partner Neeraj Bansal told PTI.

Further, RBI's stringent directives like banning the 80:20 scheme is expected to make things more difficult for developers, he said.

The September-December period witnesses maximum launches and publicity of real estate projects.

However, industry watchers are not expecting any price correction during the period.

"We don't expect any price correction now. Most projects have maintained the price levels or in some cases gone up marginally. But since they have already been factored in the slowdown, they will cautiously plan their sales," PwC India associate director Bhairav Dalal said.

Developers are likely to attract buyers through several discount schemes/gifts with most common being gold coins, cash-back on monthly rentals, customisation, free parking and club facility, zero brokerage, upfront cash discounts among others.

According to realty portal Magicbricks, developers in metros like Mumbai, Delhi-NCR, Bangalore, Kolkata, Pune, Chennai and Hyderabad have already announced various freebies.

"Offering such innovative schemes is most likely to result in higher enquiries and footfalls, which coupled with festive offerings, may help generate decent sales," Bansal said.
Despite concerns over slowdown and high interest regime, there will still be demand from primary buyers, Dalal said.

"There indeed is a slowdown but we believe that sales will happen during this festive season. We will see some offers and discounts, but that may not be major," he said.

For instance in Mumbai region, which has been witnessing a major drop in sales for quite some time, developers like Lodha, Mantri Realty and Romell Group have already announced various discounts.

While Lodha has offered Rs 2 lakh discount on spot booking for its 'Lodha Elite' project in Dombivli, Mantri Realty was offering 100 gm gold on bookings till September 18 for its upcoming Serene project at Goregaon.

Speaking about buyer sentiment, Confederation of Real Estate Developers Association chairman Lalit Kumar Jain said, "This is the best time when buyers will look at buying homes. Despite the slowdown, there will be demand as people are worried about interest rates still going up which will result in property prices escalating. So they believe this is the right time to cash in.

source:- http://economictimes.indiatimes.com/markets/real-estate/realty-trends/realtors-hope-to-clear-inventory-on-freebies-festival-sales/articleshow/23253018.cms

DLF may sell Rs 900 crore assets to Shriram Group

BANGALORE: Realty giant DLFBSE -2.54 % has held talks to divest some of its southern projects worth about Rs 900 crore, or $150 million , to the developer arm of the Chennai-based Shriram Group, said people directly familiar with the matter.

Shriram Properties is in discussions to acquire land parcels and not yet launched projects of DLF, which is seeking to pare its $3.5-billion (over Rs 21,000-crore ) debt through non-core divestments. DLF wants to focus on select cities and pursuer highend developments with better operating margins.

The privately held unit of the $9-billion Shriram Group has had more advanced negotiations with DLF regarding the latter's two land parcels in Hyderabad but the discussions also covered not yet commenced projects in cities like Chennai.

India's biggest developer DLF is unlikely to exit projects that are already under construction. Sources mentioned earlier said DLF has to decide whether it should divest at lower valuations, or wait longer. DLF also has lockin clauses and should retain a stake in some of these projects under the land acquisition agreements with state bodies, which complicates the value-unlocking moves, added one source who did not wish to be named since the talks are private.
When contacted, both Shriram Properties and DLF declined to comment on market speculation.

Property brokers have assessed that in the years leading up to the 2008 economic meltdown, DLF had splurged at least $1 billion in land aggregation in south India. The total developable area of DLF's land holdings between Chennai, Bangalore and Hyderabad add up to around 18 million sq ft, said an international property consultant, who has reviewed the land parcels. DLF shares ended nearly 3% down at Rs 132 in Mumbai on Friday.

Shriram Properties, a zero-debt company and sitting on Rs 400 crore cash, could fund the transaction through structured financing support from investors like Indiabulls and JPMorgan. The Shriram group arm has explored tying up more than Rs 1,200 crore in structured debt to step up the development story ahead of a possible initial public offering in the near future.

Last week, TOI reported that Shriram was also in dialogue with a real estate fund of the Tatas to sell a minority stake. Private equity investors TPG, Starwood Capital and Walton Street are other existing backers of the company.

source:- http://economictimes.indiatimes.com/markets/real-estate/news/dlf-may-sell-rs-900-crore-assets-to-shriram-group/articleshow/23289942.cms?intenttarget=no

DDA flats way behind deadline

NEW DELHI: The Master Plan 2021 says the capital would need 24 lakh additional dwelling units to cater to a projected population of 230 lakh by 2021. At least 54% of these units should be for the economically weaker section and the LIG category, the plan suggests.

With the assembly polls round the corner, both the Delhi government and the Centre are busy trying to meet the deadlines. While several schemes are in different stages of construction or allotment, some projects have not yet taken off despite being announced with a lot of fanfare and many others are stuck in litigation.

While urban development minister Kamal Nath has said DDA would build one lakh houses every year for the EWS category, the authority already has its hands full. Most of its projects were announced in 2011-12 and are way behind their 2015 deadline, sources said. Currently, only 2,400 premium flats in Dwarka have been completed but waiting for allotment since March 2013 while around 10,440 flats in Rohini and 5,860 units in Narela are still under construction.

In August, DDA had paved the way for allotment of the EWS houses in Dwarka, initially meant to be a regular housing scheme, to JJ cluster dwellers from nearby areas. "This decision will be a onetime decision as in future the guidelines of the housing and urban poverty alleviation ministry will be followed for formulating schemes for rehabilitating JJ clusters," said a DDA official.

In all, 2,383 slum dwellers have been identified for rehabilitation in the Dwarka EWS flats from six clusters at Indira Camp 2, 4, 5, 3 and 6, Vikaspuri and Shanker Garden . "The beneficiary's identification survey has almost been completed and inputs have also been taken from other socioeconomic surveys carried out by Delhi Urban Shelter Improvement Board (DUSIB) etc," added the official. The allotment process is likely to take six months to a year.

Around 11,000 flats are proposed to come up in the land recently acquired by DDA in Rohini and around 809 flats in community personnel plots. DDA's screening committee cleared over 16,500 flats this April. But there is no indication of whether the construction will be over by 2015. DDA is also yet to clear construction of nearly 50,000 EWS flats.

In-situ projects are also facing difficulties, with the plan for the Katputli colony in west Delhi dragging on for years and DDA approving shifting of 2,574 JJ slum dwellers to a transit accommodation at Anand Parbat only recently.

Once the colony is vacated, development of 2,800 units will begin, said officials. The project , conceived in the publicprivate partnership mode, will see the private firm Raheja Builders developing the units, unlike the recently inaugurated in-situ project at Kalkaji where DDA is constructing 8,064 flats.

"Under phase I, 3,000 flats will be made which will be completed within three years at a cost of Rs 269 crore," said an official. A commercial complex will also come up at the site to recover the cost.

source:- http://economictimes.indiatimes.com/markets/real-estate/news/dda-flats-way-behind-deadline/articleshow/23290118.cms

Not a single real estate project in UP completed since March 2012: Assocham

LUCKNOW: The real estate sector in Uttar Pradesh may be clocking a year-on-year growth rate of about 57%, but industry body Assocham claims not a single real estate project in the state has been completed since March 2012, after the Samajwadi party government was sworn to power.

According to Assocham projects, while UP accounts for 40% of the new investments attracted by real estate sector during the first quarter of the current fiscal, times completion of projects in the state remains the biggest stumbling block in the sector's growth. Assocham's paper, Current State of Real Estate Sector in India and It's Revival, says, "UP has attracted new investments in the real estate sector worth about Rs 2,350 crore in Q1 of FY '13-14 as against Rs 1,500 crore worth of new investments attracted by the state during corresponding period of last year." National secretary general of the industry body, DS Rawat, said, "However, timely completion of ongoing projects has remained a major concern for a long-time in the state as UP has not witnessed completion of any of its real estate projects since March 2012."

He also said that with a share of about 10% in total outstanding investments worth over Rs 14 lakh crore attracted by top 20 states in the real estate sector as of June 2013, UP ranks fifth with outstanding investments worth over Rs 1.4 lakh crore in the realty sector. With real estate projects worth over Rs 1.3 lakh crore under implementation in UP, Assocham says UP commands a share of about 14% in realty projects worth a total of over Rs 9.4 lakh crore under implementation across top 20 states of India.


Comparing UP's performance with other states, the Assocham survey also says Maharashtra alone accounts for highest share of about 20% with outstanding investments worth about Rs 3 lakh crore in the real estate sector followed by Gujarat (15%), Haryana (12%), Karnataka (12%), Uttar Pradesh (10%) and Andhra Pradesh (10%).

The industry body has, however, said that the sector has been hit by a slowdown not just in UP, but across India; the total new investments in real estate sector across India dipped by over 50% during the last one year as top 20 states of India attracted new investments worth over Rs 11,905 crore in the Q1 of FY '12-13 as against Rs 5,884 worth of new investments in Q1 of FY '13-14. "Real estate projects worth over Rs 2,971 crore got completed during the Q1 of the FY '13-14 across India thereby registering over 50 per cent growth in rate of project completion as realty projects worth only Rs 1,976 crore had got completed in Q1 of the previous financial year," Rawat said.

source:- http://timesofindia.indiatimes.com/business/india-business/Not-a-single-real-estate-project-in-UP-completed-since-March-2012-Assocham/articleshow/23304534.cms

Ansal Properties sales booking down 23% at Rs 558 crore

NEW DELHI: Realty firm Ansal PropertiesBSE 0.06 % and Infrastructure today said its sales bookings fell 23 per cent to Rs 558 crore during the first quarter of this fiscal due to lower realisation compared with the year-ago period.

The company had achieved a sales bookings of Rs 726.5 crore in the April-June quarter of last fiscal, Ansal said in a filing to the BSE.

Ansal API sales volume fell marginally to 4.56 million sq ft in the first quarter as against 4.88 million sq ft in the year-ago period. The realisation dropped sharply to Rs 1,224 per sq ft from Rs 1,488 a sq ft during the review period.

The decline in sales realisation was mainly due to launch of projects in regions where prices are lower.

Total area sold stood at 20.37 million sq ft during 2012-13 fiscal, aggregating to sale value of Rs 2,581 crore.

The company's net debt declined to Rs 1,000.58 crore from Rs 1,006.66 crore as on March 31, 2013.

During the April-June quarter of this fiscal, revenue rose 34 per cent to Rs 353 crore against Rs 264 crore in the year-ago period.

However, net profit had declined by 41 per cent to Rs 8.69 crore compared with Rs 14.81 crore in the corresponding period of the last fiscal.

Ansal has land reserves of 9,731 acres out of which 7,156 acres has been acquired or agreed to be acquired by third parties till 31st March 2013.

The company is currently developing 18 integrated townships (including two Hi-Tech townships) with maximum saleable area being in 'residential' segment.

Majority of the total saleable area is being developed in company's two largest townships -- 'Sushant Golf City, Lucknow (3,530 acres) and Megapolis Dadri, Greater Noida (2,504 acre).

source:- http://economictimes.indiatimes.com/markets/real-estate/news/ansal-properties-sales-booking-down-23-at-rs-558-crore/articleshow/22461638.cms?intenttarget=no

Ramprastha to invest Rs 1,000 crore in two townships in Gurgaon

NEW DELHI: Real estate firm Ramprastha Group today said it will invest Rs 1,000 crore over the next four years to develop two townships in Gurgaon, each spread across 450 acres.

"We are coming up with two large townships in Gurgaon. Both the integrated townships are of about 450 acres each," Ramprastha Group Chief Executive Office Nikhil Jain said.

The township 'Ramprastha City' will comprise row houses, plots, villas, plotted colonies and independent floors.

The townships would have more than 4,000 plots, apart from other infrastructure facilities such as shopping malls, hospitals and schools.

"We launched about 200 plots last week at Rs 66,000 per square yard. The rest will be offered in various phases," Jain said.

Asked about the investment required to develop these townships, he said: "It would be around Rs 1,000 crore, excluding land cost. The investments would be funded through internal accruals".

US-based investment firm Clearwater Capital Partners had invested about Rs 100 crore in one of the townships, he added.

Ramprastha Group has a land bank of about 1,500 acres in Gurgaon, which it plans to develop over the next 10 years. The company also has presence in Ghaziabad, where it has delivered over 10 projects.

"At present, we are focusing on developments in Gurgaon. We are developing 6,000 apartments in seven group housing projects, all in Gurgaon," Jain said.

The company targets to deliver 1,500 units by March 2014 and another 1,000 units by March 2015.

The construction is outsourced but layouts, elevations and designing of projects is done in-house, he said.

"We are in talks with 2-3 global as well as domestic school-chains for the township," Jain said.

At present, the company has an annual turnover of about Rs 600 crore.

source:- http://economictimes.indiatimes.com/markets/real-estate/news/ramprastha-to-invest-rs-1000-crore-in-two-townships-in-gurgaon/articleshow/22888680.cms

Tips for NRIs investing in commercial property in India

For Non Resident Indians (NRIs) looking at investing in Indian property today, the task is challenging. On one hand, with the rupee touching all time lows against the dollar, it appears to be a great time to remit funds to India for investment. However, on the other hand, with India's growth story looking bleak, the prospect for high returns seems an uphill task. For Non Resident Indians with big budgets and who have the appetite for some serious real estate investing, here's an option you might want to consider.

If you are keenly looking at investing in property in India, consider commercial spaces. "Today, NRI's are buying commercial properties for investment. Of course, HNIs also continue to plough huge amounts of money into high-ticket commercial properties in the quest for yield. Private bankers and wealth management firms confirm that their clients have actively started investing in commercial properties after staying away in 2009 and 2010. These investors have bought into commercial properties because they seek assets that can protect their portfolios from inflation and stock market volatility. The possibility of diversifying your portfolio, the sheer pride of ownership and the benefits of the longer leases that typify commercial tenants are the other reasons why an investor should look at commercial real estate investing" says Ramesh Nair, COO - Operations, Jones Lang La Salle.

So if you are looking at commercial property, here are some tips that might help you.

Location

"Investors need to establish the soundness of the location and its demand/supply dynamics. If they do not engage in sufficient research, they may end up buying into micro markets which have or will have high vacancies," Nair says. NRIs must ensure that the economy, job market and population growth in the market is healthy.

"Today Bangalore and Mumbai offer the best investment opportunities for commercial," he adds.

Type of property

There are different kinds of commercial properties that are available. The popular ones are retail and office spaces. "Till a few years ago, only large units were available in both, making it difficult for a small investor to invest. However, there has been a change and smaller spaces are becoming available," says Pankaj Kapoor, Founder and Managing Director at Liases Foras Real Estate Rating & Research Pvt Ltd.

"Many developers, especially in cities such as Mumbai, are today offering smaller units of space (as small as 500-1,500 square feet) in Grade A buildings. Investors looking at retail space can now consider a multitude of affordable options in free-standing high street outlets or shops in malls," Nair says.

In fact, if you are looking at buying retail space, Nair says it is advisable to look at high street rather than a mall as a strata sold mall is a recipe for disaster. In a strata sale model, shops in a mall are pre-sold to individual investors. The developer thus restricts himself to selling a store as a unit and investor can hunt for a tenant. The problem arises because the model has no control over trade and tenant mix and there is no cohesiveness to the mall to attract customers.

Out lay and expected returns

Experts suggest that the minimum budget you should have in mind for a commercial investment is Rs 3-4 crore.
Kapoor pegs the rental yield from commercial properties at 12%. Rental yield is nothing but the annual rent divided by the property value. "Often, buyers tend to ignore rental yield and instead focus only on capital appreciation. However, rental yield is a very important parameter as it represents productivity of the price. When you buy a commercial property, make sure that you can get a rental yield of at least 11-12%. An yield of less than that means the property is overvalued," Kapoor explains.

According to Nair you can expect returns of 10-11% per annum from commercial investment. "Remember, you do not only make a profit on the sale of appreciated commercial property - the rental cash flows of a well-located office or shop space are considerable. Unlike with a residential property, the income that can be generated from commercial property is what determines its value. In other words, the capitalisation rate is actually the measure of the demand for the property. For those who do their homework well, investing in commercial property is a high-adrenaline and high-returns game," he says.

Due diligence

Like any other property purchase, commercial real estate investing too calls for a fair share of due diligence.

Check the developer credentials, potential for infrastructure development, access to public transport and quality of property management in the project. If you are investing in a retail store, consider the frontage, foot-fall and the dynamics of the adjoining catchment

"If you are an investor looking at an income producing office asset, look at the break-up of cash flows, the vacancy factor, expenses such as maintenance, property tax and building insurance, lease term, lock-in period and expiry dates, long-term capital appreciation potential, and refurbishment, refinancing and repositioning potential," Nair adds.

source:- http://economictimes.indiatimes.com/news/nri/nri-real-estate/tips-for-nris-investing-in-commercial-property-in-india/articleshow/22632140.cms?curpg=2