True North Raised Its Stakes By Rs. 600 Crore For Being Home First Finance Company

NEW DELHI: Homegrown private equity firm True North, formerly Indi-an Value Fund, has entered into a binding agreement to acquire a majority stake in Home First Finance Company (HFFC) for about $100 million (Rs 600 crore), valuing the mortgage firm at $150-175 million, said a person involved in the transaction.

HFFC, promoted by former Mphasis chairman Jaithirth (Jerry) Rao and PS Jayakumar, former Citibank Consumer banking head, is primarily en-gaged in funding affordable housing. Set up in 2010, the company aims to serve the mortgage needs of low and middle income customers purchasing first homes. The company has disbursed home loans worth more than Rs 1,000 crore to over 10,000 families in 30 cities.

The proposed transaction involves a secondary sale by existing shareholders and fresh issue, said the person cited above. HFFC raised capital from Bessemer Venture Partners and Tata Capital Growth Fund in earlier rounds, giving them a 45-50% holding. Rao and Jayakumar together have about 40% and the rest is with management under the leadership of CEO Manoj Viswanathan.

Source : ET Realty

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37 years old real estate land scam of Rs. 3000 crore in Gurugram Exposed.

Gurugram: Another scam by government bodies of Haryana state has come under light when many Conflicting orders & special interest shown by the Gurugram collector and Haryana government on the appeal of various builders regarding the ownership right of 467 acres of land in Gwalpahari area (Gurugram) worth Rs. 3000 Crore. Many VVIPs and builders have been benefited by govt. bodies in this scam for their own faith.

More than 3 decade old dispute is about the ownership of Shamilat Deh (village common land) on which land owners of the village are continuously demanding the ownership right on the pro-rata basis since 1980.

The problem had aggravated after residents entered into an agreement with various realtors colonizers for sale of land because of realty boom in the area despite settlement of the land ownership dispute. The controversies regarding mutation of various land deals related to the land has led to multiple litigation in various courts.

Investigations revealed that the MCG had not challenged the order of then financial commissioner (FC) Y S Malik during his short tenure ­­ from August 1 to September 18, 2014. Malik had upheld ownership of private persons against the interests of MCG.

Documents further revealed how then Gurugram collector T L Satyapraksh, who had once refused to accept ownership title of builders villagers in the disputed land and upheld his predecessor Shekhar Vidyarthi’s orders, almost took a U-turn and upheld the mutation of controversial land in favour of a builder after receiving reference from the “chief secretary“ and the “chief minister“.

source: ET realty.

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Gurgaon Builders Building Affordable Homes, but with reduced apartment size

Demand of affordable homes in real estate market is on the peak as maximum number of home buyers are from middle class and prefer to buy affordable homes above luxurious apartments. The market was already facing a slowdown in sales which has become even worst after the Demonetization move by the government of India.

So to increase more sales and attracts potential buyers, Gurgaon builders are now planning to focus on affordable homes and for cost cutting they have decided to reduce the size of apartment.

Smaller sized flats are attracting buyers due to their affordability factor and as the family size is also getting smaller now people do wish to have an affordable and smaller house.

Earlier this month as the union budget 2017 get announced, the finance minister proposed in the budget that Govt. will grant infrastructure status to affordable home which will let builders to borrow funds at a lower cost.

Gurgaon builders finds difficulties in getting project license renewal due to several buyer complaints.

DTCP Department of town and country planning has issued new guidelines for builder in Gurgaon which are favorable to buyers. As per the guidelines; the new norms for renewing license of a real estate project along with the application of renewal by the developer will be much tougher, depending on the numbers of complaint against that builder.

The developer needs to submit a few details before the Allottee Grievance Redressal Forum (AGRF) like project development stage with photographs and need to specify details of project like numbers of labour working, project status: in progress, held-up, near completion etc.

Once the developer submits all the documents along with application DTCP will call concern field officer for a report about the builder before accepting or rejecting the plea.

Assistant town planner (ATP) R S Batth, who has played a crucial role in resolution of buyers’ issues through AGRF, said, “The field report will provide a clear picture about the project at the time of license renewal.”

Home Buyers welcomed this step by DTCP and hoping to have a more transparent system and timely delivery of projects by developers.

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