Thirteen individuals have been booked for alleged involvement in irregularities concerning the redevelopment of buildings on government-leased land, with local police claiming the amount involved may be upwards of ?200 crore.

As per the FIR filed, a firm was awarded the contract to redevelop 18 buildings on land leased to housing societies by the state housing authority. The firm allegedly used a fake mortgage deed to obtain a loan of ?200 crore from another company. However, this amount was reportedly not used for the redevelopment of the buildings. The loan was obtained by mortgaging the land on which the buildings stand. The NOC for this mortgage was allegedly given by the chairperson of one of the housing societies without taking the consent of residents or the housing authority.

The probe is underway to uncover the full details of the irregularities. No arrests have been made so far.

eal estate developers are finding it tough to get the right contractors for construction to ensure quality and timely delivery, as the number of launches has doubled to approximately 1.25 lakh housing units across the top seven cities every quarter from 60,000 before the Covid-19 pandemic. Many developers are boosting in-house capabilities, while some are hiring global contractors to avoid project delays. Some are also engaging construction technology companies.

According to industry data, 2.36 lakh housing units were launched in the top seven cities in 2019, which dipped to 1.27 lakh in 2020 largely due to Covid, and increased again to 2.36 lakh in 2021. The number rose to 3.57 lakh in 2022 and reached a record high of 4.45 lakh units in 2023. This year, it is expected to breach the 5-lakh mark.

Industry experts noted that appropriately skilling workers and developing a regulatory framework for them is key to improving the quality and speed of construction.

A joint venture between a real estate developer and a US-based private equity firm is set to acquire three land parcels totaling 211 acres across Southwest and North Chennai. This acquisition will increase the company’s total land holding in Chennai to 391 acres. The company plans to invest over ?700 crore to develop these parcels into industrial parks within the current financial year.

The new parks, with a total built-up area of 7.5 million sq ft, will bring the company’s Chennai portfolio to 11 million sq ft. The company remains optimistic about India’s logistics infrastructure sector, driven by existing shortages and emerging demand influenced by geopolitical realignments, the China-plus-one policy, production-linked incentive schemes, and domestic manufacturing initiatives. The region is experiencing strong demand due to favorable macroeconomic conditions, strategic policy reforms, government initiatives, high-quality infrastructure, and the availability of Grade A assets.

A diversified cement company on Friday filed a draft red herring prospectus (DRHP) with the capital markets regulator to raise ?4,000 crore through an initial public offer (IPO). The IPO comprises a fresh issue of equity shares worth ?2,000 crore and an offer for sale (OFS) of ?2,000 crore by existing investor shareholders. As part of the OFS, certain investors will offload shares worth ?937.5 crore each, while a bank will divest shares valued at ?125 crore.

The company’s financial liabilities include borrowings of ?1,678.90 crore, ?1,184.40 crore dues to creditors (other than micro and small enterprises), and other financial liabilities of ?842.02 crore. Its revenue from operations stood at ?6,028.10 crore in FY24, ?5,836.72 crore in FY23, and ?4,668.57 crore in FY22.

The company is among the top players in the cement segment. The IPO process is being managed by a consortium of financial institutions and investment banks.

A category II AIF has acquired a 1.5-acre plot in Fintech City, Nadambakkam, Chennai. The acquisition was completed through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).

The plot is planned to be developed into a four lakh sq ft Grade A office building within the next three years. In June 2024, the fund concluded its fundraising with a corpus of around ?550 crore. Over the last seven years, the fund has raised ?6,000 crore across its PMS and AIF businesses, while the development partner has acquired, developed, and operated hundreds of properties totaling millions of sq ft, with a combined value of over $128 billion.

The National Company Law Tribunal (NCLT) has approved a resolution plan proposed by a property developer’s affiliate to acquire a real estate development firm. The resolution plan involves paying around ?273 crore to financial, operational, and other creditors. The company undergoing acquisition was admitted into the corporate insolvency resolution process (CIRP) in December 2021 with claims amounting to over ?748 crore.

The NCLT has also mandated that the scheme of arrangement and amalgamation between the two companies be filed separately for formal approval. Although elements of this scheme are incorporated into the resolution plan, it must undergo distinct procedural scrutiny.

The ruling includes provisions for the transfer of records and documents to the acquiring company and the continuation of the monitoring committee. The committee will oversee the resolution process to ensure compliance and a smooth transition during the takeover period.

This decision by the NCLT addresses the immediate financial distress faced by the target company and sets a precedent for corporate restructuring under the Insolvency and Bankruptcy Code (IBC). By approving the resolution plan, the tribunal emphasises the importance of regulatory adherence and structured resolution processes in managing corporate insolvency.

A cement company on Friday reported a consolidated net profit of ?58.47 crore in the June 2024 quarter, despite a 26% decline in sales volume as capacity utilisation was severely affected by a liquidity crunch. The company sold its grinding unit in Maharashtra in April and included a gain of ?240.68 crore from the sale as an exceptional item in the quarterly profit.

Before exceptional items and tax, the company recorded a loss of ?147.97 crore in the quarter under review. Revenue from operations fell 28.53% to ?1,026.76 crore during the period, compared to ?1,436.74 crore in the same quarter last year.

Operating margins shrank due to low volumes, despite reduced fuel costs. Cement and clinker volume for the quarter was 19.61 lakh tonnes, down from 26.66 lakh tonnes in the same quarter of the previous year, a drop of more than 26%. Total income for the June quarter was down 27.81% to ?1,042.27 crore. Shares of the company settled 0.34% lower at ?366.90 apiece on the BSE.

A real estate developer has acquired 9.03 acres of land in Coimbatore through a combination of share purchases and direct land acquisitions for Rs 370.17 crore.

The developer completed the acquisition of 100% equity share capital of multiple land-owning entities in Coimbatore. These entities collectively hold 7.08 acres, and the developer additionally acquired 1.95 acres directly from individuals, bringing the total to 9.03 acres.

Following the transaction, the ownership structure of the developer stands at 67.1% and 32.9% for the two main investors. The acquired land is expected to be used for the company’s retail development expansion in Tamil Nadu.

The government on Tuesday proposed significant relief for individuals who bought houses before July 23, 2024, allowing them to choose between two tax rates for long-term capital gains (LTCG) tax.

The Budget 2024-25 had initially proposed reducing the LTCG rate from 20% to 12.5% but removed indexation benefits, which allow taxpayers to adjust gains for inflation. The new option comes into effect from July 23, 2024, enabling taxpayers to compute taxes under the more beneficial regime without being worse off due to the change in law.

Tax experts had previously noted that the proposed Budget changes could increase the LTCG tax burden, but the amendments now address concerns around taxation of inflationary gains for immovable property acquired before the law change.