Marvel Realtors of Pune is advertising its avowed honesty towards customers. But on checking out this sudden outburst of honesty, we found that it is only a corporate branding exercise in aid of a planned IPO
The jacket of The Times of India on Tuesday featured a full-page advertisement by Marvel Realtors, which said that unlike other builders, they will not cheat customers with false figures about built-up area. "We will give them all details about the property they are about to purchase," said a sales executive from the company. "We will tell them what the carpet area is, how much is the built-up area, so that they do not pay for what they are not getting."
Why the gesture? The executive said, "It is a part of our branding exercise. We are planning to come out with an IPO, and this exercise is its starting point." The company website has been down, and the CEO, Vishwajit Jhavar could not be contacted.
While it is a matter of speculation exactly what the connection between honesty and the IPO is, experts think that the gesture may not necessarily endear them to investors. Arun Chitnis, assistant vice-president, marketing, Jones Lang LaSalle Meghraj, says, "Definitely, the realty sector suffers from a lack of transparency, so if you assure people that you are not going to cheat them, it is fine. But if the gesture is aimed at gaining favours at the time of the IPO, it may not be enough. After all, investors would research well before investing and not because they saw an advertisement that proclaims honesty."
Neither is the promise of transparency something new. After the spate of scams befell the sector and the dismal market condition, many developers have tried to regain public confidence. "The only difference is," Mr Chitnis said, "they may not be advertising it in bold letters."
No wonder, the company has already received feedback along those lines. "Many people have told us they are happy about our promise, but many are also asking us what is new about it, because other builders are also saying the same thing," the sales executive remarked.
A representative from a realty consultant firm said, "The question is not how honest you are with your customers, but what kind of price structure you have. One can afford to be honest about charging exorbitant rates. The problem is such gestures are a poor excuse for sky-high prices."
A sector analyst agrees. "It will be far fetched to say that corporate branding exercises indicate that the IPO will be investor friendly. An IPO is a way to raise huge capital, and ultimately benefits the company. The realty sector is under a lot of pressure and developers are looking for a way out. The investor must be cautious."
The realty sector is looking desperately for alternatives to lure buyers back at a time when sales and sales registrations have plummeted. While a handful of builders are offering discounts and are considering corrections, prices remain unaffordable because most of the big realtors hold on to their stocks. However, smart investors are unlikely to fall for such branding exercises.
Where does the private sector in India stand on corruption, is the question being asked at Jantar Mantar—so will it please answer it? The politicians are silent, but why is India Inc not logging in?
Rallies and demonstrations are not new for those of us who live and work in Delhi, and by those standards, Anna Hazare's "India against Corruption" March from Rajghat to India Gate and thence to Jantar Mantar earlier today was a minnow in the field of much bigger events of the political procession sort. But if as an astute observer of the street scene in and around Delhi this correspondent can say one thing at the beginning of this report-this movement is likely going to snowball like nothing ever did before in the recent past, with the possible exception of the Mandal agitation. If you are in or around Delhi, then hop on to a Delhi Metro train, ride to the appropriately named "Patel Chowk" station, and go meet the man people are calling the "Second Gandhi".
Corruption is nothing new to most Indians, especially readers of finance magazines. Nor are the after effects of bribery. Truth be told, there is a well-known and practised school of thought within private commerce in India at all levels which encourages corruption and bribery as a means to keep competition away, and that is about as straightforward as it gets, on why any attempt to curtail corruption is usually sabotaged from within-the idealists amongst us don't have a chance. Especially if we haven't tried our hands at any dhanda in our lifetimes. Especially in newly liberalised India.
It was not always so.
Before Independence, at least, the domestic private sector in India joined hands with those seeking freedom by political means. Corruption wasn't the issue. Dominance was. And they got it after 1947. Some would say this was by way of a quid pro quo-as decades of licence raj and restricted competition came their way. Sweet rewards after John Company handed over the keys to the select few approved of by the new rulers. There wasn't really any need to be corrupt or give bribes-our private sector, such as it was, owned the game, the playing field, the umpires, everybody. They made their own rules too, and then called it "Bombay Club", remember?
Then along came "liberalisation". Enough said. Suddenly the stakes were higher, and a whole lot of new players landed up, while the older lot flew in to Delhi to fight court cases on "privacy". After having blown steam through the spout on everything including everybody else's privacy for decades, the pot was now calling the kettle black.
And so, when by right, domestic private enterprise as a victim should have been seen out there on the streets condemning corruption, we have the amazing sight of observing and noting that they are doing nothing of the sort-even as they are visiting, not too far away, a Joint Committee of Parliament or something like that, on the very same subject. A Tata or an Ambani, even a Birla or a Bajaj, could have easily dropped in to lend support to a movement against corruption in the neighbourhood, right? Maybe a Bharti, a Singh, anybody?
Wrong. However, those who did try to join, and were then seen sulking on the sidelines as they had not been invited on to the dais, were a whole lot of people who could easily be identified as political hangers-on. Whether fat and in white karat-pyjamas or fit and svelte in jeans and t-shirt, there were more than a few political types who looked as though they were waiting to be invited. And were roundly booed off. However, despite it, some tried.
Of these, Sharad Yadav went on stage to loud protests, and an unidentified person trying to refer to a leader from the NCP was given the Kalmadi treatment when he took his boss, Sharad Pawar's, name. Bad day, overall, for Sharads at Jantar Mantar. Next, some random BJP functionaries arrived, and then stood quietly in the background, while their leader then gave quotes on television from some other location. What the BJP did about corruption when they were in power at the Centre is well known-the Lokpal Bill didn't make much progress then, either. Ram Vilas Paswan's group was seen at the periphery too. No dice.
Sarcastic comments about Manmohan Singh, oblique references to High Commands, and then of course-the favourite flogging horses. Arvind Kejriwal knows how to work a crowd now, and his main agenda was to take on Sharad Pawar and Kapil Sibal, while asking people to pray for Anna Hazare's health. Kiran Bedi, on the other hand, tried to work the numbers-if we were not so corrupt, we would all be rich, said she, while she led us into prayer. And then there was some pandemonium, as assorted political sorts tried to come on stage, and were denied by a Swami Agnivesh playing monitor. On the sideline were stern posters from M/s Baba Ramdev of Patanjali and M/s Sri Sri Ravi Shankar of Art of Living. Actually, in a way, they were the corporates present!!
It then became even hotter, and the mass of people supposed to be on hunger strike started looking at the food stalls doing brisk business not too far away-after all, with dozens of television crew vans and hundreds of media and plenty of uniformed and plains-clothes types, all keeping an eye on each other, something had to be done as the speeches got repetitive. (There is a catchy tune, though, which reminds one of the same tune used for the lap of victory done by the cricketers a few days ago).
And then, suddenly, the swish set arrived. This follows a typical pattern-the mouthpieces from the out of power and "opposition" parties join the party, the same old same old chiffon and georgette low-navel display types land up to be quoted and also to see and be seen, a few off-duty television anchors who have nothing to do with anything land up and preen around, the television media hankers for bites before sunset, and after some time the crowd goes home for dinner to get swayed by the television anchor fresh from her toe and nail pedicure making it, once again, a bi-polar debate between the "secularist centres" and the "religious right" with the "left leaning" and the anti-corruption rest brought in for humour.
But not this time. For the first time, probably, this has been an Internet-driven assembly. On a national basis. The crowd was just about a few thousand strong at the Jantar Mantar in Delhi. But there were thousands and lakhs more all over the country, logging in and posting from small outposts you haven't even heard of. And lakhs online.
The first Internet-based movement, against corruption, has arrived in India. And, from our point of view, the private sector had better take a stand soon-one way or the other. Stand up and be counted.
If you are in or around Delhi, do your bit for the anti-corruption movement. A short walk away from a Metro station, go there, do something for the supporters, carry a few bottles of water or some home-cooked food for those not fasting, as they stand guard over a frail 73-year-old man trying to make it a better country for all of us. And if you who are reading this and are from the private sector, then a banner in support will mean a lot-try it?
And if you are on the Internet-then just log in.
Portrait, believed to have been painted by artist Abul Hasan when the emperor was in Mandu in 1617AD, is bought by a museum in the Middle East
New Delhi: A life-size portrait of Mughal emperor Jahangir, one of the largest known Mughal paintings, fetched an auction record Rs10 crore (about 1.4 million pounds) in London on Tuesday. The artwork has been bought by a museum in the Midde East.
The 17th century portrait, painted in gold and watercolour on white canvas, portrays Jahangir seated on a gold decorated throne holding a globe, wearing elaborate robes and jewellery. It went under the hammer at the Bonhams Indian and Islamic Sale, PTI reports.
"This is one of the rarest and most desirable 17th century paintings ever to come to auction. There is no other work of its kind known and its importance cannot be underestimated," said Alice Bailey, head of Indian and Islamic Art at Bonhams. "The extraordinary detail and complexity of the painting both fascinate and bewitch the viewer. We are honoured to have sold it."
It is believed that the portrait was painted by the artist Abul Hasan and executed while Jehangir was in Mandu in 1617AD. It was previously shown in the National Portrait Gallery in London in an exhibition on the Indian Portrait in 2010.
The picture is a political tour de force in which the emperor lays claim to a world-wide ambition. This is achieved through its full life-size magnificence, use of precious items in it s creation, and the words that accompany it, all make his all conquering ambition plain. There is a circular pendant around the Emperor's neck set with mica, with jade and glass vessels at his side and carpet under his feet.
Another important item in the sale was an inscribed Mughal emerald personal seal set in a diamond encrusted gold bangle and bearing the name of Major Alexander Hannay, an East India Company officer. It sold for 90,000 pounds, well above its pre-sale estimate of 40,000 to 60,000 pounds.
The rectangular 18th century emerald is table-cut and was mounted in an enamelled gold bangle with a Persian inscription in the early 19th century. Major Alexander Hannay was in the service of the East India Company under William Hastings at the time when the company had transferred its trading role into a more military administrative one.
In 1778, Hannay left Hastings' service and entered that of the Nawab of Oudh. He managed the district of Gorakhpur, when during this period there were a number of disturbances as a result of his suspected oppression and misconduct. The bangle has passed down through the family to the present owner.