Wednesday, November 27, 2013

Ten measures to mitigate valuation risks in real estate

Valuation Risks Need Recognition and Mitigation
Not a day passes without the realty sector hitting the headlines; and not always for right reasons. A realtor kills his mother in a car and also makes believe that he was dead and gone only to surface after two years – a case reported by the media extensively during the third week of November 2013 in Andhra Pradesh. Campa Cola Compound had to face demolition after the property owners were served notice of demolition for violation of FSI five years back just during the second week of November 2013. Hiranandini Construction Company received a Court verdict of Rs.76crores leading to liquidation while its prime properties in Chennai and Panvel are close to completion. Raheja Constructions received a huge penalty and punishment handed down by the Supreme Court in October 2013 for not handing over the promised flats to the investors. The Adarsh Housing Society of Mumbai is still under CBI investigation. Many more violations are awaiting court verdicts in different parts of the country. There is governance risk, reputation risk and market risk. One may ask: where is the valuation risk in all these deals? It is hiding deep in the skin of the sector. The reader may recall that the raison de ‘etre of recession was the subprime lending led by credit rating exuberance and inflated valuations. The resultant global recession is still staring at us.

Monday, November 11, 2013

On the road to Liberty: Political iconography: Significance of Sardar Pate...

On the road to Liberty: Political iconography: Significance of Sardar Pate...: Narendra Modi is building the world's tallest statue, in memory of Sardar Patel, in the Narmada district, of Gujarat?  Why does Narendra...

Tuesday, November 5, 2013

Seeking Opportunities in Adversity

Seeking Opportunity in Adversity

Adversities could be opportunities for cleansing the system. The ghastly bus accident on the Bangalore-Hyderabad Highway has exposed the vulnerabilities in implementing the Motor Vehicles Act and Rules.

Have mobile phones of the passengers’ added fuel to fire when the diesel tank caught fire?
Each accident may have its own tale to tell but the latest has many tales of distress. Earlier also buses fell into the gorge or had hit the pavements and got into fire accidents. But never it was so instantaneous flame that left no passenger spared except the lucky five. On earlier occasions, several were able to jump out to safety and had burn injuries or fractures and a few died while undergoing treatment due to the intensity of burns on the body. Not this time.