BPTP - the over hyped real estate company with its promoters under the esctasy of Land havinally tasted the reality of Realty. We had called BPTP deal the sub-prime of India and they indeed are :-)
BPTP has applied for surrender of a 95-acre commercial plot at Sector 94 in Noida which it had bought for Rs50bn, making it India's largest land deal. The company has already paid Rs13bn, but is unable to pay the balance amount and, under a new policy of the Uttar Pradesh government, has applied for retaining ~25% of the land it has paid for. The new policy allows developers to either get payment of their land dues rescheduled or surrender the plot after paying a penalty of 10% of the amount deposited and get land elsewhere for the remaining amount. Developers have been allowed time up to June 2009 to submit their proposal to surrender their land.
Dirty Real Estate Developers who ignored Indian consumers and targeted NRIs have started converting 3 BHK lifestyle Apt projects into 2 BHK affordable Housing. But the price /sft has remained the same. Without any doubt the Realty sector is headed for another 15-20% correction and ENAM Securities in its report has said that India is headed for a hung Parliament [Means no will to liberalize the economy further, no big FDIs etc] So wait and watch, but if you get a DEAL, squeeze the Developer and BUY it.
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