Friday, 15 February 2013

SEBI attaches Sahara Properties, freezes bank accounts as Realty investors are left in lurch

SEBI attaches Sahara Properties, freezes bank accounts as Realty investors are left in lurch

It's the real estate investors and customers of two Sahara group companies—Sahara Housing Investment Corporation (SHICL) and Sahara India Real Estate Corporation (SIRECL)—who stand to lose the most as a result of the Sebi order.

The chances of completion of the projects that these two companies had undertaken are not very high since Sebi has attached the properties, said a real estate expert on condition of anonymity. The Sahara group had sold a number of projects in cities like Bangalore, Chennai and Mohali. Customers who invested in these projects are going to be adversely impacted. The group is said to have a land bank of nearly 27,000 acres across the country.

Another real estate expert said that since most of the recoverable investment of the group is in real estate Sebi will sell them to repay outstanding dues of bondholders. Only after repaying bondholders, the money will be used for investors in the real estate projects. This process will take a long time to complete and investors will suffer.

Over a period of time, the group has created huge assets in the real estate sector. So far, the group has launched housing projects in 19 cities. During June 2012, the group had launched 10 integrated township projects in 10 cities on over 900 acres of land. The towns in which the group had launched projects included Pune, Aurangabad, Jodhpur, Gwalior, Bareilly, Solapur, Porbandar, Katni, Kashipur and Cuttack. Sahara has also launched seven projects, which the group claimed, are already under construction, in Lucknow, Jaipur, Indore, Nagpur, Ahmedabad, Satna and Coimbatore.

The group is also implementing a mega city premium project called Ambi Valley near Pune. A large number of investors are understood to have invested in these projects. The group had also launched a new affordable housing brand called Sahara Swapna City that is to be built on smaller land parcels across 360 cities, the group claimed. An investment of Rs 500-600 crore would be required for each Sahara City Homes project, while the affordable homes project will require nearly Rs 100-125 crore, which are normally financed through customer advances and bank funding. More details here.


Sahara City Homes in Dhanori, Pune by Sahara Prime City Limited

Sahara launches 10 township projects across Tier-2 and 3 cities

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