[The following post is contributed by Bhushan Shah and Labdhi Shah from Mansukhlal Hiralal & Company. The views expressed herein are personal] Parliament of India has passed the much awaited Real Estate (Regulation and Development) Bill, 2016 (Regulation) in the ongoing Budget Session. The Regulation has been enacted with the intention of protecting buyers, bringing transparency and...
Indian REITs – Story So Far, Challenges and Expectations from Budget 2016
[This guest post is contributed by Yashesh Ashar and Swati Adukia. They are tax professionals and specialize in mergers and acquisition tax. Please note that the views are personal] I. Introduction The Securities and Exchange Board of India (“SEBI”) notified the SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”)...
Easing Investor Exit in the Construction Development Sector: A Loss for Domestic Infrastructure?
[The following guest post is contributed by Abhinav Kumar, who is a 5th Year, B. A. LL. B (Hons.) student at NLU, Jodhpur] The Department of Industrial Policy and Promotion (“DIPP”) issued Press Note 12 (“PN12”) in November, being the last of the 2015 series. Titled “Review of FDI policy on various sectors”, PN12 brought sweeping changes to the FDI regime pertaining to around 15 sectors...
Competition Law and the Curious Case Of Integrated Townships
[The following guest post is contributed by Sarthak Raizada, a 4th year law student at Dr. Ram Manohar Lohiya National Law University, Lucknow] The issue of relevant market for an anti-trust analysis has been the subject matter of considerable debate with respect to the real estate sector. The Competition Commission of India (“CCI”) has extensively dealt with the said issue in a plethora of...
Foreign owned or controlled companies: Is sharing of office infrastructure real estate business?
[The following guest post is contributed by Vinod Kothari of Vinod Kothari & Co.] If a company wholly or majorly owned by non residents allows group or subsidiary companies to share your photocopier, or server, or staff, are you engaged in “real estate business”? The question itself must have startled most: however, a purported clarification of the Department of Industrial Policy and...
The Introduction of Real Estate Investment Trusts (REITS) In India
[The following guest post is contributed by Dhanush. M, a 5th year student at the Jindal Global Law School] `Leverage without supporting cash flows could be the death knell for the real estate industry`. The present state of the Indian real estate industry could be a testament to this adage where the total net debt of the top ten real estate firms by market capitalisation stood at Rs...
Need For a Real Estate Regulatory Authority in India
[The following guest post is contributed by Ranjit Mahishi, who is an Associate at Kochhar & Co., Bangalore. He can be reached at [email protected]] Real estate in India has experienced a tremendous growth in the recent years. The demand for commercial and residential spaces in major cities has seen a steady rise. Generally, a real estate transaction involves complex issues such...
Whether Land is a “Security” Under Collective Investment Schemes
[The following guest post is contributed by Prachi Pandya, who is the founding member of Corporate Attorneys and can be contacted at [email protected]] It is a matter of interest that the trigger point of framing the SEBI (Collective Investment Schemes) Regulations, 1999 (the “CIS Regulations”) was owing to initiatives by private entrepreneurs undertaking plantation or agricultural...
Revised FDI Norms for Construction Notified
Last month, we had carried a guest
post summarising and commenting upon the changes to the FDI norms in the
construction industry, which relaxed several conditions. Now the Department of
Industrial Policy and Promotion (DIPP) has made these changes effective in the
form of Press
Note No. 10 (2014 Series).
Update: Relaxation of FDI Norms for Construction Development Sector
[The following post is contributed by Bhushan Shah at Mansukhlal Hiralal & Company, Mumbai] The Union Cabinet on 29 October 2014 decided to amend the Foreign Direct Investment (FDI) policy in the construction sector, i.e. townships, housing and built-up infrastructure. The press release is available here. The key amendments are as follows: Minimum area to be developed: (a) The minimum built...
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