JLLM touting growth in IT industry

Realty firms under scanner for slush funds

Just what the doctor ordered. An anema of of the entire money laundering system. Ironically DLF and others will have Modi to blame for all the attention. If the heat turns on, new funds will be very afraid to enter the market. Expect the bubble to pop in the foreseeable future.

Economic times reports

NEW DELHI: Major realty firms of the country are under the probe of enforcement agencies for alleged violation of FDI terms and use of slush funds worth several thousand crore brought in from certain tax havens.

While the Enforcement Directorate has carried out raids at premises of realty firm Emaar MGF for alleged violations of Foreign Exchange Management Act in the recent past, the latest to feel the ED heat was realty fund and developer IREO.

Sources said more number of firms are under the scanner and a detailed probe is underway. The Income Tax department has also conducted its operations and is now planning to delve deep into the tax statement of the realty firms.

When contacted, IREO had said "Some officials from the department of revenue have approached IREO for certain information and clarifications, which are being duly responded to. IREO remains committed to fully cooperate with the authorities, like always."

Incidentally, the moves come following a report prepared by an arm of the Revenue Department late last year, which identified the real estate market as the sector having the highest percentage of black money.

The most common violation that the investigating agencies have found in the realty sector is the alleged breach of Foreign Direct Investment terms.

They said many firms are believed to have diverted investments meant for the real estate sector to purchase agricultural land.

Under various agreements with the Foreign investment Promotion Board (FIPB), agricultural land is a sector barred for investment.

The searches that have been initiated now by the ED are the culmination of months of discreet probe into the real estate sector by various arms of the Revenue Department.

They said many of the funds are being brought in from tax havens like the Caymen Islands, Mauritius among others.

In some cases, the Directorate has learnt that certain realty firms had opened up multiple companies to acquire more land than the prescribed ceiling and had even made their low level employees as its Directors without their knowledge.

Freedom at Midnight

On August 15th 1947 as the clock stuck twelve a.m Jawaharlal Nehru made a powerful speech exhorting India to wake up to the new world.

To quote Nehru said "At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom. A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends, and when the soul of a nation, long supressed, finds utterance. It is fitting that at this solemn moment we take the pledge of dedication to the service of Inida and her people and to the still larger cause of humanity."

On similar lines in the wee hours of April 26th, 2010, BCCI suspended Lalit Modi thereby singling out Modi as the single individual responsible for all the scandals which IPL is a part of.

On one day India attained freedom, on another the party of the powerful have tried their best to severe off their right hand hoping that this surgical procedure will be the best option under the given circumstances.

Everybody knows the levels of corruption in Indian politics and business. As followers of real estate we have seen massive amounts of speculative capital being parked in lands all over the country. There is no accountability since the law-makers and law enforcers are in cahoots with each other.

This is the India we awake to every day. The sooner we realize it the better it is. It is not going to get any better. Modi was made the scrape-goat since he got too big for his own shoes. The Indian political system operates at more nefarious level then even the Bhai's. I have no sympathy for Modi however I am convinced that he people against him are 10x more deep in the muck which Modi finds himself in.

Now imagine if a commission was setup to examine the land-holdings and source of funds of the builders.

That scandal will make Lalit Modi look like King Harishchandra.

Land sharks grab land in Alibaug

One of the most picturesque places in Konkan is now getting destroyed by the land mafia. At this rate there will be nothing left but concrete structures all over the coast. As usual the government does nothing. One more sad tale in a one of the most corrupt states in the country.

Fantastic interview with Mohanish Pabrai

Steve Forbes does a very god job in interviewing Mohnish Pabrai of Pabrai funds. Mr Pabrai's views Chinese and Indian companies with a dose of skepticism as he doesn't trust the accounting balances sheets and the audit process in these countries. Great viewing for anyone who is swayed by the morons on CNBC TV, whether in the US or India. Greed is universal. Here is the full video.

Infosys posts Q4 profit of 1600 cr; to hire 30,000

The hiring number looks ridiculously large. Getting 30,000 employees productive is a challenge of mammoth proportions. Its going to drive recruitment consultants crazy.

Tuhina Pandey and Mokshada Batra, April 13, 2010 (Bangalore)

Infosys, the second largest Indian IT company, kick started the earning season on Tuesday posting numbers quite aligned with the street's expectations.

Infosys on Tuesday reported a consolidated net profit of Rs 1600 crore for the quarter-ended March 31, 2010, a quarter-on-quarter growth of 2.6 per cent and year-on-year decline of 0.9 per cent.

The company registered revenues of Rs 5,944 crore for the March-ended quarter 2010, up by 3.5 percent quarter-on-quarter and a year-on-year-growth of 5.5 per cent.

But investors were, as always, more focused on the keenly awaited guidance for next fiscal which came in healthy at 16-18 per cent for dollar revenue growth but more muted in rupee terms at 9-11 per cent with earnings seen largely flat in FY11.

"We have done very well to what we thought we would. We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building during the economic downturn", S Gopalakrishnan, CEO and MD said on Tuesday. "This quarter we added 47 new clients, the highest in recent times", he said.

Infosys also said it was looking at recruiting nearly 30,000 persons for this fiscal year including over 2000 from overseas.

In India it had already made 19,000 campus offers, T V Mohandas Pai, Member of the Board and Head-HRD and Education and Research said.

The company was planning to induct 5,500-6,500 laterals, he said while talking about Infosys' hiring plans. It was planning to recruit 1000 each for its China and US office and around 400 in Manila.

Infosys also saw one of the largest wage increase. "There has been a large wage increase for middle and junior level employees. In senior level there has been a 10 per cent increase in wages". Overall the average wage hike has been around 14-17 per cent, he said.

All expect Infosys to beat its indicated guidance as it has in the past but the margin contraction by 150 basis points next fiscal on the back of rupee appreciation and wage hikes, and rising attrition are causes for some concern.

An upbeat management at Infosys headquarters and the most widely used phrase "cautiously optimistic” is out of fashion for now. However, as of now it seems like "play it safe" is still the Infosys mantra.

Times of India now calls the bubble in Mumbai

Fools rush in where angels fear to tread. If I had bought in Mumbai in before 2006, I would just sell it and sit on the money. The profits are just too good to be true.

Beneteau yacht for a crore, but not a flat

Anil Singh | TNN

Mumbai: A brand new fourseater Cessna 172 aircraft,a new Beneteau 35-footer coastal cruiser yacht that can comfortably carry a family of six to Goa, three Mercedes ‘C’ class saloons; each of these can be had for one crore rupees. But raised eyebrows and blank stares is all you will get at the ongoing property expo at Bandra-Kurla Complex if you ask what you can get for this sum. “Please pick up the rate charts from that corner,’’ sales executives at several counters told this correspondent disinterestedly on learning that the budget was a mere Rs 1 crore. It was as if a slum dweller had strayed into a mall.

Nonetheless, if one is willing to visit every stall in the 14,000 sq ft air-conditioned hall put up by the Maharashtra Chamber of Housing Industry (MCHI), one can find apartments costing less than one crore in the municipal limits of Mumbai. Only that they may be in under-construction,standalone buildings on the outskirts of the city or in rundown localities. For instance, a 2BHK flat at Bhandup by Neptune builders measuring 1,000 sq ft (carpet area 700 sq ft) comes for Rs 67 lakhs. The 30-storey building, Flying Kite towers, behind Metro mall, is still under construction.

The more affordable options include a 2BHK flat at Mantri Park, Goregaon (E), off Film City road for Rs 70 lakh. A 1,160 sq ft 2BHK flat at Gundecha Altura, Kanjurmarg (W), LBS Marg, is going for Rs 76.5 lakhs. HDIL is selling 1BHK and 2 BHK flats at Galaxy Apts at Kurla East at 5,251 per sq ft. A 1,035 sq ft, 2BHK flat at ‘US Open’ by Nirmal Lifestyle at Mulund (W) will cost you Rs 85 lakh at Rs 6,552 per sq ft if you are willing to wait four years for possession.

According to builders specialising in SRA projects, it is possible to get an 800-sq ft carpet area flat for Rs 80 lakhs in Andheri. MHADA recently sold 2BHK flats with a carpet area of 700 sq ft at Versova for Rs 42.5 lakhs. However, at the MCHI expo, most of the 2BHK flats are tantalising out of reach if your budget is Rs 1 crore. For instance, a 2BHK at Ackruti Shikhar at Parsi Panchayat Road, Andheri (E), will cost you Rs 1.3 cr at Rs 12,500 per sq ft. A 2BHK flat with a carpet area of 775 sq ft at Kohinoor City, which has replaced the Premier auto works at Kurla, comes at Rs 1.18 cr. A 2BHK at Kalpataru Aura at LBS Marg, Ghatkopar, comes for 1.1 cr. Flats at HDIL’s Metropolitan at Andheri are being sold at Rs 11,500 per sq ft and a 2BHK with a carpet area of 765 sq ft costs Rs 1.31 cr. At Ajmera Pristine, Yogi Nagar, Eksar Road, Borivli (W), a 3BHK with an area of 1,595 sq ft can be had for Rs 1.43 cr.

Of course, all these flats come with amenities such as a swimming pool, a gym, a clubhouse, multi-level car parking and the like. But then, it would be much cheaper to live in a trailer, or for that matter in a Beneteau cruiser yacht bobbing on the waves.

Realty check: Rising rates thwart home buyers' plans

The bubble grows bigger day by day. Most buyers are priced out as the flats are sold to investors or with folks with pots of black money. I'm sure the journalist who wrote this article is facing the pinch as well. 13000 is Andheri is 3 times the rate in 2006. Add to that the usual bogus built-up rate the sq/ft rate is over 18,000. Just rent the same property for 30,000 rs and enjoy it. One blogger asked the opinion of SS and BB on Bangalore real estate. I would say that Bangalore real estate is priced right and if you have need an apt you can get one from 40L onwards though you might have to goto the outskirts for that. Apartment sizes are generally larger then Mumbai and it is not uncommon to find rates in the vicinity of 3,000-4,000. Also the built up loading is roughly 20%, unlike the 40%+ loading applied by the Mumbai crooks

DNA reports


Mumbai: If the projects displayed at the annual property fair by the Maharashtra Chamber of Housing Industry are any indication, purchasing a flat will be a daunting task for home buyers this year as well.

Buyers will have to contend with property prices, which have almost doubled, and a dwindling stock of ready properties in “affordable” areas beyond Kandivli in the western suburbs and Panvel on the harbour line.

Take for instance Athena and Astraea buildings being constructed in Rustomjee’s Urbania project near Majiwada Junction at Thane. In a year’s time, the price of the project has increased from Rs4,000 per sq ft to Rs6,143. Similarly, Gundecha Symphony in Andheri (West) has increased rates from Rs8,000 per sq ft to Rs13,000.

The rates were a huge disappointment for visitors. Lillu Asurlekar, a prospective home buyer, said, “I am looking for a flat in Andheri or Goregaon, but the prices are very high. I will now have to go beyond these areas. How can anyone shell out Rs4,000 a sq ft for a flat in Panvel?”

Barring Everest Developers, who offered a discount of Rs100 per sq ft, there were no discounts offered by any top ranking developers. In fact, for the first time, developers like Lokhandwala and K Raheja Universal did not participate in the property fair.

Who Is Jacking Up Property Prices In Mumbai?

Moneylife.in reports on issues much discussed on this blog for quite some time

By Sindhiya, Section Real Estate
Posted on Fri Apr 02, 2010 at 11:42:54 PM EST
A bunch of vested interests seem to be working together to fuel India's new property bubble, especially in expensive real-estate markets like Mumbai

Real-estate prices in India, which are already reaching for the stratosphere, are being further fuelled by a set of vested interests such as established brokerage firms and leading media houses through reports which exaggerate demand and suggest that realty prices may go up even further. Meanwhile, angry investors are struggling to get the regulators to act quickly and decisively to dampen the price escalation.

Recently, ICICI Securities released an all-India survey (across eight cities) which was headlined--`Affordability not a concern--healthy demand for homes at current prices: ICICI Securities survey'. A closer look suggests that things are not so rosy.

In fact, apart from vaulting prices, potential property buyers are outraged at how they are being cheated with regard to the actual usable area that is being sold to them. Moneylife has already reported on how the loading, which used to be anywhere between 20% (built-up) to 40% (super built-up) has now been pushed up to as high as 80% by several builders in Mumbai. With the government showing no signs of setting up a property regulator, builders and developers clearly feel confident that nobody will check their dubious selling tactics.

Another factor that has increased prices in Mumbai is the loading of taxes (in form of value-added tax (VAT) and service tax) on the already high price being forked out by consumers.

Source: moneylife.in Who is jacking up property prices in Mumbai?

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A research report circulated by ICICI Securities says that Ahmedabad has the highest inventory of 59%, Chennai has inventory of 10% while Mumbai has an inventory of 8% and National Capital Region (NCR) has only 1%. However, property experts are sceptical about these numbers. "It is a doctored report to show optimism. In fact, Chennai represents the least inventory and Mumbai & NCR the maximum. I am surprised to see such a false picture being painted by one of the credible brands," said Pankaj Kapoor, founder, Liases Foras.

For many media companies, headlines that point to property prices rising even further, usually translates into increased advertising revenue. In some cases, they have equity deals with realty companies which include an agreement to project reports that favour these companies. A reader has written to point out that some of these headlines sound like "quotes from the builder".

A senior executive of a leading information technology firm has even been writing to the governor of the Reserve Bank of India, pointing to how vested interests are pushing up property prices.