‘Green Man’ Lalitkumar Jain heads CREDAI; Embarks on ‘Mission transparency’ in realty

NEW DELHI: Civil engineer-turned multi-project developer Mr Lalitkumar Jain, nicknamed as the “Green man of Pune” for his eco-friendly nature, who has been elected as the President of Confederation of Real Estate Developers’ Associations (CREDAI) has vowed to take up the issue of transparency in real estate deals.

 

Mr Jain, commenting on his plans for CREDAI, said the developer community as such has been facing several problems relating to transparency in transactions.

“We at CREDAI have planned to tackle with this problem head-on and ensure customer delight in our transactions. We are also keen to ensure that the customer relationship management gets a new meaning in real estate, for real,” he said.

Mr Jain, Chairman and Managing Director of Kumar Urban Development Limited (KUL) was earlier the Vice President of CREDAI (West) and his election as the national President marks a new high in his nearly 3-decade long experience as a developer.

A people’s man that he is, Mr Jain took active part in organizing the developer community. In fact, he was the youngest Secretary and President of the Promoters Builders Association of Poona (PBAP). He, along with Mr JiendraThakkar, has also played a stellar role in creating and developing the Federation of Promoters Builders Associations of Maharashtra.

Mr Jain has been associated with CREDAI right from its inception. As the first convener of CREDAI national convention in Vigyan Bhawan he is also credited for mobilizing the largest number of developers on one platform. He has been the Vice President of CREDAI twice and has significantly contributed to the organsiation’s activities and representations on policy and legal issues.

He started his career at the age of 17 years as a supervisor in a Pune company and contributed to the firm making handsome profits. Restless to perform, Lalitkumar joined his father Late Shri Kesarimalji Kamdar‘s business Kumar &Co and mastered legal knowledge and the government policies.

With his Company Motto - “We Build Trust” - he practices what he preaches. Small wonder his business grew manifold and Kumar Builders quickly became synonymous with quality real estate of Pune. In 1999, his family saw partition and Lallitkumar started with development of 35,000 sq ft and within five years he delivered 1.4 million sq ft.

He has carved a niche for himself in Pune construction with more than 100 projects and 14,000 tenements, setting a new benchmark in trustworthiness. Apart from residential complexes, he developed IT Buildings, Retail Malls, IT Park and gated communities.

Kumar Builders has recently been rechristened as Kumar Urban development Limited to give it a new identity to change with the changing times. KUL has so far developed 70 million sq ft with 9million sq ft of city centre projects, with focus on Pune and Mumbai.

Bangaluru, Hyederabad and Nagpur are on KUL’s radar for the near future. Its current projects range from redevelopment projects to SEZ.

KUL can also be credited for being the largest single contributor to the City’s greenery drive. Each year, KUL donates about 10,000 saplings to the civic bodies, besides developing public gardens.  The environment park called “Nakshtra Udyan” stands testimony to the fact that greenery is a way of life at KUL.

Presenting environment friendly projects, KUL is one of the first developers to have received the coveted  ISO 14001 certification under 2004 guidelines, globally

The company, under Mr Jain’s leadership, has been hounoured with the National Shrusti Award for contribution to environment as it was the first developer company to adhere to PMC’s environment norms. It has also won “CNBC CREDAI AWARD” for Best Commercial Building Systems, City Scapes’ “Future City Award”, “Amacus” Best Developer Award, “Best Regional Developer Award” by Realty Plus. KUL is rated as one of the top 10 developers of INDIA by Construction World Magazine in 2009.

A meritorious student right from his 1^st Standard, Mr Jain has shown keen interest in education and sports. For well over decade, he has been running a unique project called “Adarsha Vidya Mandir Yojana” designed to ensure an overall growth of students by adopting schools especially in backward rural areas around Pune.

Now, he is all set to major role at the national level taking up passionately the cause of developers and their stake holders – the customers.

You are wrong, Sahara tells SEBI

Sahara India this rebuttal to SEBI order banning two of its group companies and promoters from raising funds.

Though as an institution, SEBI is a highly responsible and one of the respectable regulators of the Country, but certain individuals occupying their office, act with malice and biased approach which serve no public good and earn only a bad name. 

Registrar of companies under Ministry of Company Affairs officially and lawfully had allowed the unlisted companies Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) to issue Optionally Fully Convertible Debentures, based on our Red Herring Prospectus fully complying with the provisions of Companies Act 1956  (the Act) keeping in view the latest provisions of first proviso to Sec. 67(3) of the Act.

Unfortunately some officers bearing the grudges against the Sahara India Pariwar, repeatedly not fulfilling there vested legal demands, have even gone to the extent of uploading the order on website; and not supplying it directly to the company. This is but obvious to whimsically hit the company and disturb its well wishers and investors from associating with it.

SEBI in the past fought with Insurance Regulatory and Development Authority (IRDA) and now giving us direction to stop issuing Bonds (OFCDs) which has been permitted by Ministry of Company Affairs (MCA) without consulting a word even with the actual regulator MCA.

Note :     Media has also wrongly interpreted and stated that in M/s. Sahara Prime City Limited IPO has been rejected by SEBI.

SEBI had been seeking informations from us about OFCDs. We all the time wrote back that this matter is not definitely under SEBI’s jurisdiction.  We should not become the victim of cross fire between two Government regulators SEBI and MCA.

We submitted to SEBI the legal opinion that this OFCD is definitely not the matter of SEBI, it is not their jurisdiction. This opinion has clearly been submitted in SEBI given by five legal luminaries namely Shri A.M. Ahmadi, Former Chief Justice of India; Shri C. Achuthan, Former Presiding Officer, Securities Appellate Tribunal, Mumbai; Shri S.P. Kurdukar, Former Judge, Supreme Court of India; Shri A.K. Manmadhan, Advocate, High Court of Bombay and Shri U.P. Mathur, (Former Secretary Company Law Board & former Director of Inspection & Investigation in the Department of Company Affairs), Advocate & Corporate Law Consultant.

Not only this the SEBI has also shown total disrespect to the orders passed by Hon’ble High Court of Bombay in the matter of Kalpana Bhandari and Others vs Securities and Exchange Board of India and others 2004 (1) BomCR 663, 2005 125 CompCas 804 Bom in which it has given that “SEBI has powers (i) in case of listed public companies and (ii) in case of those public companies which intend to get their securities listed on any recognised stock exchange in India.  In other words SEBI does not have power in relation to the issue and transfer of securities and non-payment of dividend under the various provisions referred to in section 55-A for the companies other than listed public companies and the public companies which intend to get their securities listed on any recognised stock exchange in India.  Such power is vested in the Central Government”.

Note:   Sahara companies in question are neither listed nor intend to be listed.

SEBI is doing all these irresponsible acts based on some baseless (anonymous also) complaints. We repeatedly asked SEBI for the name and address of complainant which they so wrongfully refused to inform us. Recently the main complaint case against us has been totally rejected by Government of Madhya Pradesh. We some times face these complaint problems from very greedy people who try to extort large sum from us which we never have entertained or allowed.

SEBI in its order has cited various information it collected through MCA website vindicates the stand of the company that the information required as per the Act have been supplied to proper regulator, i.e., MCA. Further, when company had appealed SEBI to wait till receiving the directions of MCA and no undue long time had elapsed, the action of SEBI looks to be taken in haste with bias. The reasons look apparent but we have no written basis to mention here. It is apparent that SEBI has for best reasons known to it, totally ignored all legal opinions and Hon’ble High Court Judgement. 

SEBI’s very important reaction was that we are not supplying them all the information that they are asking for. We wonder why they asked these information from us and why not from MCA? You please go through the part of our detailed last letter of 30th September 2010 to SEBI that clearly says why we have not sent them the information. 

“Once again our humble request to you is to take all information from Ministry of Corporate Affairs (MCA) who are the regulators in this matter.  There may be jurisdictional problems amongst Regulators like it happened between SEBI and IRDA recently, still the Business and Industry like us should not be put as party in cross fire, as it is happening with us, hence please do not make our company as disobedient company in the eyes of its Regulator, i.e., MCA. When information was taken on our deposit mobilization (RNBC) activities of our Group Company from RBI why not to take information on Bonds (OFCD) from MCA.  

Inside information from SEBI’s internal people says that if we give all the information ourselves to SEBI, SEBI would take action against Sahara through Media to disturb Sahara establishments.  If SEBI takes all information from MCA they won’t be able to act against Sahara. Of course, SEBI knows this is wrong and arbitrary action which will not stand in legal trial but SEBI will create Media trial to destabilize Sahara. The above is substantiated with the fact that SEBI is not taking the information from MCA and is insisting to get it from the Company. Kindly take the information from MCA. 

We do not want to blame SEBI which is definitely a highly respected institution and we genuinely respect SEBI as institution. Yes, there are sometimes such individuals who go unreasonable and baselessly biased and create unnecessary problems. We are definitely pained.

We are an orgnaisation where 9 lac families are earning their bread and butter.  Please do not disturb us unreasonably, unnecessarily. Please support on merit and bless us.”

In the past also similar biased act of regulator we have experienced, so we were very apprehensive and after this biased order our apprehension has now come right. 

SEBI has talked about 4 to 7 thousand crores which we have received through OFCDs etc. Out of confusing so many newspapers etc. had mentioned about Rs. 20000 plus 20000 crores etc. SO..

..One Should Know About Sahara’s Financials (Provisional as on 30th June 2010)

Group Liability Statement

Net Outstanding liability with accrued interest of Public Deposits plus Unsecured loan from Banks plus Money from close Associates plus Advances against various projects plus Life insurance Policy Holders Fund plus Money in Mutual Fund. (Book Value Rs 34,328 Crores)

Group Assets Statement

Liquid Investment, Cash & Bank balances and Fixed Deposits etc. (Book Value – Rs. 19,390 crores), (Market Value – Rs. 19,456 crores)

Sundry Debtors, Loan and Advances, tax refundable and other current assets etc. (Book Value – Rs. 7,629 crores), (Market Value – Rs. 7,629 crores)

Land, construction Work in progress, Finished Stock and Fixed Assets etc. (Book Value – Rs. 27,949 crores), (Market Value – Rs. 82,139 crores)

Total Group Assets (Book Value – Rs. 54,968crores), (Market Value – Rs. 1,09,224 crores) 

Note: The above statement is prepared on the basis of provisional Balance Sheet a on 31/03/2010 or 30/06/2010 of Sahara Flagship Group Companies.

WE ARE ABSOLUTELY AND RELIGIOUSLY LAW ABIDING ORGANISATION NOT BECAUSE WE FEAR LAW BUT WE RESPECT LAW OF THE LAND.

NOW WE SHALL SOON APPEAL AGAINST SEBI’s ACTION AT AN APPROPRIATE FORUM.

SEBI could have approached MCA in this matter to fulfil their duties towards the masses (as they are claiming). Otherwise they would have given this order in the interest of people (so called claim by SEBI) directly to us through a letter. What was the reason of putting 34 pages in their website to make it public?  Respected Readers must be understanding the intentions clearly.

So in the interest, image, goodwill of entire Sahara India Pariwar SEBI has pushed us against the wall that is why we are forced to come out with all above details.

Source : www.sahara.in
English - http://sahara.in/sebi-eng.pdf
Hindi - http://sahara.in/sebi-hindi.pdf                                                             

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European telecom sector faces M&A

• Fitch: High M&A Risk for European Telecoms Sector

Fitch Ratings believes the Europe telecoms sector faces a high risk of M&A in the next three years, as the underlying strategic case for consolidation amongst operators is as strong as at any time since the peak of the dotcom bubble in 2000.

"The European telecoms sector has evolved in a unique way over the past 20 years reflecting the fragmented nature of its licensing and regulatory regimes," says Michael Dunning, Managing Director in Fitch's EMEA telecoms team. "As a result Europe now has too many telecoms operators relative to its population size and, with operator market shares' stagnating, further consolidation looks inevitable."

Fitch believes that the greatest chance for M&A exists in northern European countries where there is most competition. However, there are pockets of exposure in other regions such as Spain and Italy, either as a result of increased maturity of traditional product offerings and/or a lack of further growth prospects.

From a credit standpoint, cross-border acquisitions are higher risk for the acquirer as increased leverage is not usually offset by potential synergies. In-country consolidation may be less negative for the credit profile for an acquirer as there is usually scope for significant cost reductions, and reduced competitive intensity should help reduce leverage in the years after the transaction. Issuers disposing of assets should be able to enhance their credit profiles, providing that cash proceeds are used sensibly to pay down debt and not all returned to shareholders.

For all these reasons, Fitch believes that in-country consolidation is the more likely route in Europe as operators seek to align inefficient corporate structures and concentrate on markets where they can offer triple and quad-play bundled services and benefit most from the synergies on offer from rival operators.

IDBI Federal launches Wealthsurance Milestone Plan

• To achieve different milestones of life with full confidence
• Insured Wealth Plan with 13 Investment options and 7 Insurance options

MUMBAI: IDBI Federal Life Insurance announced the launch of its new ULIP called IDBI Federal Wealthsurance™ Milestone Plan today. The Wealthsurance™ Milestone Plan is a unique Insured Wealth Plan designed to help cross different milestones in life. It enables customers to save and build wealth under the protection of Insurance to meet their financial goals.

The Wealthsurance™ Milestone Plan offers a wide range of Investment options, Insurance options and unmatched flexibility that allows customers to customize a plan suited to their needs. Customers can plan for milestones like completion of school education by a child, a marriage, acquisition of a new house or any other goal. This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all packaged with a low charge structure and unmatched flexibility.

Announcing the launch, Mr G V Nageswara Rao, MD & CEO of IDBI Federal Life Insurance said: “Everyone wants to create wealth, but wealth creation does not happen by chance or accident. It needs a Plan. Wealthsurance™ Milestone Plan offers such a plan, which is very flexible and can be customised to an individual’s needs. The beauty of the Plan is that it can be insured not only against risk of death but against 17 major diseases, hospitalisation, disability, accidental injuries etc so that you can feel confident that your financial goals can be reached despite the surprises life may throw up.”

Wealthsurance™ Milestone Plan offers a comprehensive suite of investment options which are designed to meet the needs of every customer depending upon his or her risk appetite. Conservative customers can choose guaranteed return options which offer fixed, assured returns. Those who can take more risk can opt for capital protected options where the entry NAV is guaranteed and returns depend upon the market. Customers who would like to get potential high returns of equity markets in the long-term and understand the risk can opt for market linked equity options. Wealthsurance™ Milestone Plan offers a unique investment options called Asset Allocator Funds, where the company’s fund managers invest in equity or debt depending upon market conditions. This is a very useful option for customers who do not have the time or expertise to monitor equity market and shift into debt or equity based on market conditions.

IDBI Federal Wealthsurance™ Milestone Plan not only allows its policyholder to invest according to their changing risk appetite; it also provides a host of insurance benefits to protect them against uncertainties, so that they don’t have to break their investment to meet sudden financial demands and their money can keep compounding. The insurance benefits offered by the Plan include Major Diseases Benefit in which lump-sum cash amount upto Rs. 20 lakhs is paid upon diagnosis of any of 17 specified major diseases. These include heart attack, coronary bypass surgery, cancer, stroke, paralysis, coma, brain tumor, renal failure, major organ transplant etc. Another benefit is Hospital Cash Benefit in which daily cash benefit upto a maximum of Rs. 5000 per day will be paid for each day of hospitalisation, irrespective of the amount actually spent. The claim process is simple since no bills have to be submitted but only proof of hospitalisation. Other benefits offered include accidental death and disablement benefit and waiver of all future premiums upon death or disablement.

“The Plan comes with attractive tax benefits. Premium contributions are eligible for tax deduction under Sec 80C. All benefits under the Plan are tax-free under Sec 10(10D),” Mr. Rao added

Post Dost: The changing face of India Post

by Alkesh Tyagi*

 
For over 150 years post offices have been the most visible and popular face of the Indian Government throughout the country. The concept of e-governance i.e Government at your desktop being advocated and promoted today can trace its genesis in services rendered by Post Offices, when the Postman was  the only person delivering mail personally at the doorstep of the people. Now India Post is gearing up to play more comprehensive role by reorienting itself to meet the expectations of future generations.

The Indian economy has scaled new height over the last few years and is still in acceleration mode. Emergence of several significant trends such as: liberalisation and globalisation; demographic shift towards urbanisation leading to increasing internal and external migration requiring to be serviced; monetisation of the economy especially the agricultural sector giving rise to a corresponding demand for financial services by all sections of the population; and government policy to increase funding for weaker section programs has necessitated changes in postal framework.

Services
The four main areas of services offered by India Post are- Communication Services-  Delivering letters, post card etc; Transportation Services- Transporting  parcels, logistics etc; Financial Services-  Facilitating saving bank, money order, insurance etc and Value added Services- Providing  speed post service, business post, direct post etc.

Transmission and delivery of mail is India Post’s core business so far. Post Office Savings Bank is the oldest and largest banking institution in the country. Transmission of funds by postal order/money order has been the traditional way of money transfer. Since 1884 onwards Postal Life Insurance (PLI) has been providing life insurance coverage, initially to employees of P&T Department and subsequently to all Government employees. Since 1995 PLI has been extended to the rural population of the country under a new scheme Rural Postal Life Insurance (RPLI).

Responsibilities
Globalization and the deepening of market mechanism in India have brought forward the concept of self sufficiency and social service going hand in hand.  India Post is committed to fulfil the Universal Service Obligation for providing basic postal service throughout the country, irrespective of terrain, at an affordable price.  India Post fulfils this obligation through the largest postal network of 1, 55,035 Post Offices (as on 31.3.08) in the world.  Of these 1, 25, 489 Branch Post Offices cater exclusively to rural areas.

Besides new responsibility of  facilitating applications under Right to Information is being shouldered by the post offices.

New Initiatives
To meet the challenges posed by ever changing communication technology especially mobile telephony and World Wide Web, Department of Post is attempting to transform it, striking a balance between its objectives and outcomes of transformation.  As the transformation is a multi dimensional process attempt is being made to change the Department at multiple levels.

In order to provide better, faster and satisfactory services to its customers, India Post is focusing on few key areas. Pick up mail facility, electronically enabled services, a dedicated freighter services, the instant money order, and many other similar initiatives have been undertaken to reorient the services for providing greater satisfaction to its customer. At the same time, for self sufficiency, India Post is exploring the role of business facilitator for other organisations.

Dedicated Freighter Service
In an effort to deliver the mail, parcel, speed post and the logistic consignments by the next day in major cities, India Post has added two more aircrafts bringing the total number to three and the process to acquire the fourth is in pipeline.  These three aircrafts dedicated to carry only postal cargo touch nine cities every night making possible faster delivery in major cities and their peripheral areas.

Project Arrow
An initiative to transform India Post into a vibrant and responsive organisation is going on under the ‘Project Arrow’.  Under the Project 50 Post Offices were modernized in the first phase and 450 in the second phase.  Now the third phase is under process for transforming 500 post offices. Selected post offices are undergoing complete overhaul in their look and feel as well as in their core functions and operations.  Systematic transformation of post offices in a phased manner will revitalise India Post.

The new logo of India Post reflects this change. The straight lines have been replaced by bold strokes retaining the ‘wings’ element. There is an element of modernity with a conscious effort to maintain an element of continuity.  Red and Yellow colours used in its logo convey passion, power and commitment with a pinch of hope, joy and happiness.

IT leads Initiatives
Efforts are on to equip post offices with latest communication means. All the post offices in the country will be computerised during the current five year plan. Major 25,000 post offices have already been computerized and the remaining branch post offices will be taken care during rest of the period.  This will make the delivery of information and money order faster.            

Recognition
Nation Wide reach of India Post has attracted many private partners.  Be it Mutual funds or money transfer business.  Since 2001 DOP has been making select mutual fund product available through post offices.  Five years ago UTI Mutual Fund and Department of Post joined hands to bring capital markets closer to common man in semi urban and rural areas.  India Post provides penetration to the remotest corners of India making mutual fund popular.

Recognising the crucial role, India Post was facilitated on 24th September 2009 with UTI-CNBC special commendation award in the form of “Financial Advisor Awards 08-09” trophy for effectively utilizing its network to promote financial inclusion in smaller places.

An efficient and reliable communication network is the lifeline of the nation and plays a crucial role in socio-economic development and the integration of the country. For nearly a century and half the Postal System has been the main component of the communication infrastructure for the country. Given the need for a strong communication and financial infrastructure, India Post is preparing to meet both challenges and avail of the opportunities presented by current market conditions. With its efforts India Post will make social, commercial and industrial life possible in the remotest parts of India. Though, traditionally India Post have been the courier of peoples’ emotions and trust but changing with times will make India Post even more attractive and useful because of its reach and credibility.

*Deputy Director (M&C), PIB, New Delhi

Fiscal deficit projected at 6.8% of GDP

The Finance Minister Pranab Mukherjee has said that the fiscal deficit as a percentage of GDP is projected at 6.8% as compared to 2.5% of the Budget Estimates for 2008-09 and 6.2% as per the provisional accounts of 2008-09.

Presenting the General Budget for 2009-10 in Lok Sabha today, Mr. Mukherjee assured that the government will address the issue in right earnest to come back the path of fiscal consolidation at the earliest as this level of deficit was a matter of concern.

The Finance Minister informed that the Budget Estimates for 2009-10 provide for a total expenditure of Rs.10,20,838 crore consisting of Rs.6,95,689 crore towards Non Plan and Rs.3,25,149 crore towards Plan expenditure. At this level the Non Plan expenditure marks an increase of 37% over BE 2008-09 whereas the Plan expenditure increases by 34%. The increase in expenditure in 2009-10 BE has been pegged at 36%. The Finance Minister pointed out that the Non Plan expenditure mainly increases on account of implementation of the 6th Pay Commission recommendations, increased food subsidy and higher interest payment arising out of the larger fiscal deficit in 2008-09.

Mukherjee provided a substantially increased Defence outlay of Rs.1,41,703 crore in the budget for 2009-10 as against Rs.1,05,600 crore in BE 2008-09. He informed the Lok Sabha that the total provision for subsidies during 2009-10 has been raised to Rs.1,11,276 crore from Rs.71,431 crore in BE 2008-09.

The Finance Minister told the Lok Sabha that the gross tax receipts are budgeted at Rs.6,41,079 crore in 2009-10 as compared to Rs.6,87,715 crore in BE 2008-09, given the possibility of economic down turned persisting in the current year. He informed that the non tax revenue receipts, is likely to be better at Rs.1,40,279 crore in the current fiscal as compared to Rs.95, 785 crore in BE 2008-09. The revenue deficit is projected at 4.8% of GDP as against 1% in BE 2008-09 on 4.6% as per provisional accounts of 2008-09.