When Nitin Gadkari gets an invitation from Niranjan Hiranandani!

Both Nitin Gadkari and Niranajan Hiranandani are facing severe allegations of wrong-doings. So, it is most ironic that the developer, as head of the Indian Merchants’ Chamber, has invited the beleaguered BJP president on his “Vision for India and Mumbai Development”. Unfortunately, at this point of time, people want to hear something else from Mr Gadkari

On 6th November (5.30 pm) the Indian Merchants’ Chamber (IMC) has invited Nitin Gadkari to speak at an interactive session on “Vision for India and Mumbai Development”. It is not clear whether Mr Gadkari, who has cancelled some of his public engagements will actually turn up for the event. After all, the media as well as the public is interested in Mr Gadkari’s views on an entirely different issue at this point in time. 
He is under pressure from all quarters, including his own colleagues from the BJP, for the dubious manner in which his group has been funded as well as new revelations in The Economic Times about the maze of shell companies that have allegedly helped him launder large amounts of money into his Purti Group.
Is the timing of this session a way to allow Mr Gadkari to engage with the public and speak about his own past record in terms of Mumbai’s infrastructure development? If yes, then the timing is very ill-conceived. Yes, Mr Gadkari does have achievements to his credit, but he has squandered away that legacy with his deal with Ideal Road Builders (IRB)—the toll kings of India. 
The bigger irony is that the invite to Mr Gadkari is from Niranjan Hiranandani, IMC’s president, who himself is facing an investigation by the Maharashtra Anti-corruption Bureau (ACB) the alleged Rs45,000 crore Powai land scam. Last month, the Bombay High Court lifted its earlier stay on the probe into the Powai real estate scam allowing the ACB to restart investigation into Hiranandani Developers, senior state bureaucrat Thomas Benjamin and other unknown persons.
Meanwhile the ministry of corporate affairs (MCA) and the Income-Tax (I-T) department are probing source of funding of various shell companies that invested in Mr Gadkari’s Purti group. 
The irony of this meeting is probably lost on the IMC and its office bearers, because nothing exposes the happy nexus between politicians and businessmen that this attempts to lend each other countenance.


Real estate pitfalls: A checklist on how to steer past them

Here are some crucial things to keep in mind while buying your dream house which will help you navigate the treacherous world of real estate

The sheer number and size of advertisements and marketing gimmicks for real estate cannot be ignored. In and around New Delhi, we see them on the front pages of newspapers and magazines, pop-ups and other tricks on internet websites, direct and indirect visuals on television, promotions in movies and hoardings at every conceivable location and so on. It has come to a point where fields and land along the roads leading out of Delhi, in any direction, are now being promoted as the future of urban development, where it will create great wealth and eventual posh destinations.

However, if you are not careful, many of these literal “castles in the air” will likely end up as destinations for your money—at a very rapid rate of depletion.

Here’s a short list of things to keep in mind, if you want to pre-empt and prior to putting your money down. Do this with a cool head and do not fall for hard-sell hustles like “prices are going up” or “last few apartments are left in the project”, and so on. Always be prepared to walk away without feeling remorseful.

1) Do not place any money as booking advance with a broker or intermediary, in cash or cheque, by way of a “credit note” or anything else. A good broker will try to keep his books and liabilities clear by not bringing transit money into his accounts. A crooked broker, on the other hand, will try and entice you to do exactly the opposite. Insist on direct payments to the builder, or the bank if it's a loan.

2) Ask for a copy of the Builder Buyer Agreement (BBA), or the Letter of Allotment, or the Terms & Conditions (or whatever the builder calls it), before you place any advance with a builder or promoter. If you do not get hold of one, for any reason, then walk away. Very often, buyers are stuck with extremely one-sided BBAs, and the threat of forfeiture of advance is real.

3) One clause to look out for in the BBA is the one which permits a builder to increase the chargeable area, arbitrarily, without notifying the buyer. Read this carefully. Also double check on what rate the builder will use for such a clause, if you do agree to it. Paying “market rate” for additional area charged for with the last payment can be an unpleasant surprise.

4) Rates of interest and method of calculating interest on delayed payments needs to be spelt out clearly and accurately. At the same time, a clause covering early or excess payments by the buyer must be part of the BBA, at the same rate of interest. Do not accept overdue interest charged without getting details of how the figure was arrived at.

5) Single or joint ownership is a very personal matter and you need to be clear on this before you sign anything. So please get good advice from your tax and legal consultants prior to documentation. Do not leave this to the last moment when emotions can run high.

6) Construction-linked payments make a lot of sense. Ask for a proper statement of account, within this context, every time the builder raises a demand note. Do double-check with a site visit. If the amounts are similar, which they often will be, make a small surplus payment of a few rupees so that your statement is always in credit and each payment is of a slightly different amount.

7) Get the builder to define well in advance, at the time of paying the booking amount, what ‘possession’ will mean. It should mean when all codal formalities and adherences required for registration are complied with, and when you are ready to occupy a completed project. Do not fall for terms like “temporary possession” for fitments and final interior work.

This is by no way a composite list, but most of these pointers will help you differentiate the good builders from the bad. Of course, nothing like it if a builder is highly transparent—specifics on carpet area for instance. 

In the next article, we shall try and list out what you can demand and expect at time of delivery, and how you could go about issues in case of problems.

However, in a sector as unregulated as real estate, the golden rule is caveat emptor or ’let the buyer beware’. This is of paramount importance—look after your own interests before parting with your hard-earned money.

(Veeresh Malik had a long career in the Merchant Navy, which he left in 1983. He has qualifications in ship-broking and chartering, loves to travel, and has been in print and electronic media for over two decades. After starting and selling a couple of companies, is now back to his first love—writing.)


Government allows Indian air carriers their own ground handling

The Ministry said that all private airlines, including foreign airlines, may undertake self handling in respect of 'passenger and baggage handling activities at the airport terminals' and 'traffic service including the passenger check-in', which require passenger interface, at all airports

New Delhi: In a policy reversal, the Indian government has allowed domestic carriers to carry out ground-handling of their own flights at all the airports, reports PTI.
The proposal was made at a meeting Civil Aviation Minister Ajit Singh had with representatives of airlines here, which came ahead of a hearing of the matter in the Supreme Court soon.
Under the 2007 policy, the main airports were supposed to have only three ground handling companies -- the Air India- Singapore Airport Terminal Services (SATS), the local airport operator in alliance with a ground handling partner and one to be chosen through competitive bidding. The six airports are at Delhi, Mumbai, Bangalore, Hyderabad, Kolkata and Chennai.
The airlines complained against the policy saying it would lead to large scale retrenchment and that there would be no alternative use of assets already in place.
"After taking into consideration views of all stake holders, a Cabinet Committee on Security note was submitted and it was approved that all private airlines, including foreign airlines, may undertake self handling in respect of 'passenger and baggage handling activities at the airport terminals' and 'traffic service including the passenger check-in', which require passenger interface, at all airports," a statement from the Ministry said.
Also, all cargo airlines, which have their own cargo aircraft, would be allowed to undertake self handling in their hub airports. But foreign airlines and private independent ground-handling service providers would not be permitted self ground-handling at joint user Defence airfields, it said. 
The Ministry had also extended the time limit for exit of non-entitled companies beyond 31-12-2009 up to 31-12-2010.
While the Ministry was taking steps to implement the policy, the domestic airline operators had filed a petition in the High Court of Delhi in November 2010 challenging the new regulations.
The court dismissed the writ petition in March 2011.
Thereafter, an SLP was filed in the Supreme Court challenging the order of Delhi High Court.
The ground handling business is estimated to be worth Rs2,000 crore a year. It involves services like check-in, baggage handling, cargo handling, aircraft cleaning, loading and unloading of food on aircraft, besides ferrying passengers to and from planes.


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