Sucheta Dalal :Financial castles in the air-III
Sucheta Dalal

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Financial castles in the air-III  

April 14, 2010

DLF, the official sponsor of the Indian Premier League (IPL), is trying out different financial moves to run its core business, real estate. It is offering different rebates for its various properties if homebuyers pay almost 95% of the basic sale price (BSP) within one month of booking a property. 


A real-estate agent from New Delhi told Moneylife that DLF is offering 10% rebate on the BSP for its residential project −‘New Town Heights, DLF Gurgaon’, by offering a down-payment scheme. The customer has to pay Rs5 lakh at the time of booking the property; 97.5% of the sale price within 30 days and remaining 2.5% can be paid when the customer receives the occupation certificate. Currently, the price of the project is Rs2,150 per square feet.


Recently, the Delhi High Court asked market watchdog Securities and Exchange Board of India (SEBI) to probe a ‘mis-statement’ in DLF’s Red Herring Prospectus while it had launched its initial public offering (IPO) in 2007.


The developer is also offering a higher rebate of 10.50% for its ‘River Valley’ residential apartment project at Panjim in Goa, while it is offering a 10% rebate for its ‘Express Greens I & II’ project in Gurgaon, according to the real-estate agent.


For the River Valley project, the consumer is supposed to pay Rs2,50,000 for a one bedroom, hall & kitchen (BHK) flat, Rs4,00,000 for a two-BHK and Rs5,00,000 for a two-and-a-half BHK, at the time of booking. The remaining 95% of sale price has to be shelled out within two months after booking the flat. The remaining 5% including interest-bearing maintenance security (IBMS) charges, stamp duty & registration charges and other charges have to be paid at the time the company hands over the occupation certificate.


According to DLF’s website, for the ‘Express Greens I & II’ project, the applicant has to pay Rs5 lakh at the time of booking an apartment in the tower; 95% of sale price within 30 days; 2.5% of the sale price when the occupation certificate is applied for, and 2.5% of the sale price (including IBMS, stamp duty and registration) at the time of receipt of the occupation certificate. Currently, the prices of the Gurgaon apartments are Rs2,250 per sq ft.
(This is what DLF’s website says:

 — Pallabika Ganguly

-- Sucheta Dalal