Robert Vadra led companies bought 41 DLF flats and sold most of them at a profit
Oct 15, 2012
Source : The Economic Times
The son-in-law of Congress Party president.


NEW DELHI: Robert Vadra, the son-in-law of Congress Party president Sonia Gandhi, had bought as many as 41 premium apartments from DLFBSE -0.75 % but subsequently sold most of them at a profit. All the apartments were acquired by companies promoted by him, including Sky Light Hospitality- which had dealings with DLF- by paying a minimum booking amount, with the exception of a luxury pad in the picturesque Aralias, for which he paid the entire sum of Rs 11.9 crore upfront.
Vadra, whose dealings with India's biggest real estate firm has come under the lens in the past ten days, booked apartments in three premium projects: Aralias and Magnolias in Gurgaon and Capital Greens in Moti Nagar in Delhi. He used a part of the Rs 58-crore advance paid by DLF (for purchasing a 3.5-acre plot from him in Gurgaon) for booking these flats.
Also Read: Robert Vadra ties up with DLF, makes low-key entry into Real estate business
Most of these apartments were bought for the purpose of trading as Vadra sold around 38 of these 41 apartments subsequently, said a DLF executive. A DLF spokesman confirmed Vadra had bought these apartments in the three projects. He also said that the client had later paid around Rs 7 crore as delayed payment charges.
An email sent to Vadra's personal secretary Manoj Arora seeking his response did not elicit a response.
During 2009 and 2010, Vadra bought 25 apartments in DLF Capital Greens, a premium project constructed on a 38-acre land that DLF acquired from DCM Shriram and the Lohia Group in 2007 for Rs 1,675 crore. While the builder launched the first phase of the project at around Rs 4,500-5,500 per sq ft, the prices subsequently increased to Rs 10,000 per sq ft. Vadra brought these apartments in the first phase and sold them in 2010-11.
He also booked 15 apartments in DLF Magnolias, a premium project next to a company-owned golf course on the Gurgaon Golf Course road that is nearing completion. Of these, he has already sold 13 apartments and still retains two units.
"These kinds of dealings are not uncommon in the real estate industry. These are people who book huge number of apartments and then sell them when the prices go up. Vadra was only one of them, and certainly not the biggest," said an industry source. A real estate consultant who declined to be named said more than 75% real estate bought in the national capital region is for investment and trading purposes, with Gurgaon being a particular favourite of high-networth investors.
An investor recently booked 50 apartments in the Noida Extension region, in the hope that prices will soar soon. Some of these investors are well organised and call themselves underwriters. These moneyed investors are often blamed for the high prices of homes in the country, especially in the NCR region, as they often strike bulk deals at good bargains when projects are launched, denying genuine homebuyers the opportunity to buy. These investors hold on to their huge inventory and sell it at a higher price.
Activist -turned politician Arvind Kejriwal has called for a probe into the dealings between DLF and Vadra. He had alleged that DLF gave an interest-free unsecured loan of Rs 65 crore to Vadra and these funds were, in turn, used to buy real estate assets from the company, including apartments in Gurgaon at vastly discounted prices as well as a 50% stake in a DLF hotel in South Delhi.
DLF has denied any wrongdoing and said its dealings with Vadra were clean. It said it gave an advance, and not an unsecured loan, for buying a 3.5 acre plot, which is a standard practice in the real estate industry. It says all its transactions with Vadra were at market rates. The government has refused to take up the issue suo moto.

Latest Realty News

Pune Municipal Corporation spent Rs 2cr to raze 900 buildings
Oct 15, 2012
PUNE: In the last four months, the Pune Municipal Corporation (PMC) demolished 8.5 lakh sq ft using Rs 2 crore of the tax payers' money, a top civic official said. An official, who declined to be named, said that since July, the civic body has demolished 900 illegal buildings. "Expenses include the money spent on manpower and machinery and depend on the size of the building. It can range from
Land scam: Rs 2.37cr in typist's home
Oct 15, 2012
KOLKATA: Bidhannagar Police on Saturday seized cash worth Rs 2.37 crore, 131 gm of gold and a car from the Barasat apartment of Sushanta Kumar Das, one of the three arrested in the Salt Lake land scam case. Sushanta (wrongly referred to as Sukhen Das in previous reports), a typist who posed as an advocate, had along with Haradhan Das (the KMDA Group-D staffer) and Aloke Chatterjee (the retired KM
Waste clearance, drainage systems in city get a boost
Oct 15, 2012
CHENNAI: Garbage clearance and the drainage system in the city received a shot in the arm as chief minister J Jayalalithaa on Sunday sanctioned projects worth 898.78 crore, focusing on improving the basic infrastructure facilities in the newly included parts of the corporation.
Global urban population to be 6.3 billion by 2050
Oct 15, 2012
HYDERABAD: The global urban population is estimated to be 6.3 billion by 2050, nearly doubling the 3.5 billion urban dwellers worldwide in 2010, posing a challenge in management of biodiversity, says a report by Convention on Biological Diversity here. The total urban area is expected to triple between 2000 and 2030, while urban population is expected to nearly double, increasing from 2.84 bil
West Delhi to get biggest surface parking lot
Oct 15, 2012
NEW DELHI: West Delhi will soon be home to the biggest surface level parking lot in the capital. North Delhi Municipal Corporation is planning to turn the area over the Kirti Nagar-Ramesh Nagar drain into a 3km long car park capable of accommodating over 8,000 cars. Almost 70% of the drain covering work is complete, claim corporation officials. The facility will ease the parking woes of west
Cap likely on Mhada rehab house size
Oct 15, 2012
MUMBAI: The state government may modify norms to increase the size of tenements for people residing in old and dilapidated Maharashtra Housing and Area Development Authority (Mhada) buildings which go in for redevelopment. To get rid of excessive bargaining and unfair practices used by developers to lure societies, Mhada is toying with the idea of introducing a cap for the maximum size of reha
54 cities to have clean fuel by end of 12th 5-year plan: Environment Ministry secretary
Oct 15, 2012
Hyderabad: As many as 54 cities in the country will have clean fuel, both petrol and diesel, by the end of the 12th Five Year Plan, Union Environment Ministry secretary T Chatterjee said here today. "Once you use that fuel in all the vehicles, it means there is no air pollution. Clean fuel will not have sulphur and other such pollutants. It is the easiest way of getting rid of air pollution. Y
No festivities this season
Oct 13, 2012
The festival season has arrived for the realty sector. Dussehra is that time of the year when buyers look at sealing the deal and developers go all out to woo them. This is also the period when newspapers are awash with advertisements offering freebies. This year, however, the annual spectacle is subdued in scale. The major reason for this turnaround is affordability. Most buyers believe that
Investors will shun 'investor unfriendly’ Mumbai and flock to Gujarat: CREDAI
Oct 12, 2012
Raising alarm over Mumbai and Maharashtra becoming increasingly "investor unfriendly", developers apex body CREDAI has said the state government's policies will end up being its gift to Gujarat's upcoming Gift City. CREDAI national president Lalit Kumar Jain, who is also a leading developer in Mumbai and Pune, criticised the series of policies by the state government culminating in the recent
Housing sector may see some price correction: NHB
Oct 12, 2012
New Delhi : Housing finance firms' regulator NHB today said there may be "some price correction" in the housing segment as there is inventory build-up in some areas. "Such projects which are not selling on account of high price perception may see some price correction partly in the light of current downward revision in the housing loans," National Housing Bank (NHB) Chairman and Managing Direc

Latest Realty News Of State

Realty Talk's