Tribunal asks ARCIL to stay auction of Tulip Star hotel
Jan 29, 2014
Source : The Economic Times


MUMBAI: In a major relief to Mumbai-based realty firm Nirmal Lifestyle, the Mumbai bench of Debt Recovery Tribunal (DRT) has directed stress asset firm ARCIL not to proceed further on auctioning of the Tulip StarBSE 2.27 % (erstwhile Juhu Centaur) Hotel at prime Juhu Tara Road in Mumbai.

On Tuesday, DRT restrained the country's largest asset reconstruction company from auctioning the sea-facing property till further orders. Also, the tribunal has directed Ajit Kerkar-promoted V Hotels to deposit Rs50 crore within 8 weeks in dues out of a total of over Rs235 crore.

"The tribunal has passed an order on securitization application, which will protect the developer's interest to develop 2.5 lakh sq ft of retail space here," said Ashok Paranjpe, managing partner, MDP Partners, representing Nirmal Lifestyle in the matter.

P Rudran, MD & CEO, Asset Reconstruction Company (India) or ARCIL, declined to comment on the matter saying that he has not seen the order yet.

ARCIL, which had acquired the property from four banks, has been trying to sell the asset to recover its dues. However, the last attempt to sell the hotel failed as it did not receive bids from any entity.

The property comprises basement, ground floor and six upper floors along with open floors. The property has a total of 1.2 million sq ft of available floor space index or permissible development on the plot.

The existing hotel structure has around 8 lakh sq ft space including 2.5 lakh sq ft of retail, 3.5 lakh sq ft of hotel and 2 lakh sq ft for service areas and parking.

The auction notice has set a reserve price of Rs1,315.25 crore for the hotel, while ARCIL's dues are worth Rs235 crore. The developer argued that the property is valued much higher than the claims and hence the sale of entire property is unjustified.

Under an agreement in 2003, Tulip Star gave 2.5 lakh sq ft to the developer to set up a mall. Nirmal Lifestyle in turn had paid Rs30.6 crore to Tulip Hospitality to develop the mall.




Latest Realty News

CCI rules out abuse of dominant position by Omaxe
Jan 29, 2014
DELHI: Fair trade regulator CCI has rejected a complaint that alleged realty firm OmaxeBSE 0.49 % of indulging in anti-competitive practices with respect to development of residential plots in Sonepat district of Haryana.
Land price on a high as DDA set for pooling policy
Jan 28, 2014
DELHI: Land prices on the outskirts of Delhi have risen significantly and in many cases have as much as doubled over a period of 18 months following the announcement of land pooling policy by Delhi Development Authority (DDA). The prices may rise further, once the finer details of the policy are out. The final policy is expected within a month.
Why integrated townships are the way forward
Jan 28, 2014
DELHI: In today’s real estate scenario, the trend seems to be leaning towards integrated townships. Is there a demand for it? If so, what are the key drivers? And more importantly, what comprises a truly integrated township?
Greater Noida West: Ideal destination for midrange homebuyers
Jan 28, 2014
DELHI: The skyline of Greater Noida West, formerly known as Noida Extension, has changed drastically and is now adorned with residentialproperty units—from imposing highrise projects to neat and well-laid out low-rise structures—projected to house nearly 10 lakh people in the near future.
Project money being diverted to fund poll campaigns, realtors fear labour crisis too
Jan 28, 2014
DELHI: In Noida, part of the National Capital Region and home to a burgeoning middle class, a builder is wondering where he'll find the money to finish building about 1,200 apartments that are to be delivered by the middle of next year. Unless he can find some cash, the construction will grind to a halt. But all the usual sources of funds have dried up, at least until the general election is over.
Infrastructure projects to get a boost in Noida
Jan 27, 2014
DELHI: The Noida Authority, one of the richest civic bodies in the country, plans to draft a budget of Rs 8,000 crore for the financial year 2014-15 with various infrastructure projects, including the setting up of the Noida Metro Rail Corporation (NMRC).
Haryana barred from issuing land-use licences in NCR
Jan 27, 2014
DELHI: The Punjab and Haryana high court on January 23 directed the Haryana government not to issue any change of land use (CLU) licence to developers to build colonies in Gurgaon and the National Capital Region till the NCR Planning Board approves a sub-regional plan.
Realty a better buy in smaller towns
Jan 27, 2014
DELHI: Smaller towns and cities closer to metros and industrial hubs are seeing significant housing demand, on the back of lower land cost and increased prosperity. This is in sync with the earnings of HDFC, which cited growth in retail loans across smaller towns, for posting good numbers for the third quarter.
Infrastructure projects to get a boost with Noida Authority's Rs 8,000 crore budget
Jan 27, 2014
NOIDA: The Noida Authority, one of the richest civic bodies in the country, plans to draft a budget of Rs 8,000 crore for the financial year 2014-15 with various infrastructure projects, including the setting up of the Noida Metro Rail Corporation (NMRC).
Raghuram Rajan may hold rates; EMIs to stay unchanged
Jan 27, 2014
DELHI: Supported by falling inflation rates, the Reserve Bank of India (RBI) is widely expected to keep its key lending rate, the repo rate, unchanged at 7.75% in its monetary policy review on Tuesday, temporarily warding off fears of an immediate hike in consumer and home loan EMIs.

Latest Realty News Of State

Realty Talk's