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Indian Real Estate News

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  • Re : Indian Real Estate News

    Government prepares plan to hive off surplus land of PSUs

    In the Budget, finance minister Nirmala Sitharaman had proposed an SPV in the form of a company to monetise non-core assets, which is largely surplus land of ministries, departments and PSUs. File photo

    NEW DELHI: After unveiling the Rs 6-lakh-crore asset monetisation programme, the government has accelerated efforts to hive off surplus land and will soon seek Cabinet approval for setting up a specialised entity (special purpose vehicle, or SPV) to undertake such transactions for state-run companies, ministries and departments.

    The entity will also handle land transactions of state-run firms that have closed or are facing closure. The government has been toying with multiple models to monetise land for the last four-five years but seems to have finally moved towards implementing the decision.

    “We are finalising the details and, in the next 10 to 15 days, we will approach the Cabinet for approval of this SPV that was announced in the Budget,” a senior government official said.

    In the Budget, finance minister Nirmala Sitharaman had proposed an SPV in the form of a company to monetise non-core assets, which is largely surplus land of ministries, departments and PSUs. “Monetising of land can either be by way of direct sale or concession or by similar means. This requires special abilities and for this purpose,” she had said while proposing the SPV.

    The official said the new entity will undertake land transactions for PSUs and other government agencies for a fee and will act as an agency where land assets will be pooled before being sold off. He said several PSUs that are on the verge of privatisation, such as Air India and BEML, are in the process of hiving off non-core assets, including land and buildings. Selling off surplus land as well as building and apartments is also being explored by two telecom PSUs BSNL and MTNL as part of the restructuring process.

    The official said under current conditions, lack of capacity in undertaking transactions linked to government land had delayed the process. The new entity will be staffed with domain experts as well as people who are trained in complex transactions.

    State-run NBCC had undertaken some transactions by selling off surplus land and using the proceeds to build accommodation for government employees as well as commercial space.

    Monetisation of land has been a contentious issue as cautious civil servants have been dragging their feet on accelerating such transactions. Several transactions have been delayed for years.









    Government prepares plan to hive off surplus land of PSUs, Real Estate News, ET RealEstate (indiatimes.com)
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    • Re : Indian Real Estate News

      Tata Realty acquires entire equity stake held by Actis in Intellion Square

      Post the transaction, TRIL now owns 100% stake in TRIL IT4, which owns and operates an I.T. building, located in Malad.
      NEW DELHI: Tata Realty & Infrastructure (TRIL) has acquired entire equity share held by Actis TREIT Holdings No. 2 (Singapore) and 416 Listed NCDs held by Actis TREIT Holdings No. 1 (Singapore) in TRIL IT4 now called Intellion Square situated in Mumbai in an all cash deal, the company said in a media release.

      A securities purchase agreement was executed between all the parties. TRIL IT4 is part of a joint venture between Tata Realty and Actis that invests in and develops new generation offices in established commercial markets across India’s major cities.

      Post the transaction, TRIL now owns 100% stake in TRIL IT4, which owns and operates an I.T. building, located in Malad. TRIL IT4 is a roughly 0.8 million sq ft completed I.T. building leased to tenants largely from the technology & BFSI sectors. IT4 claims to have an occupancy of about 90%.

      Sanjay Dutt, MD & CEO, TRIL said, "This deal is in line with our endeavour and expansion strategy for our commercial portfolio.With this successful exit, TRIL has demonstrated its capability to create shareholder value for pre-eminent investor partners."

      The transaction is the second office exit by Actis during the Covid-19 pandemic. Actis had completed another exit last year in Seoul, Korea.








      tata realty: Tata Realty acquires entire equity stake held by Actis in Intellion Square, Real Estate News, ET RealEstate (indiatimes.com)
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      • Re : Indian Real Estate News

        Real estate assets' information to be included in third set of Swiss bank details

        India will get this month the complete information on flats, apartments and condominiums owned by Indians in Switzerland as also on earnings made from such properties to help it look into tax liabilities associated with those assets.
        NEW DELHI | BERNE: India will get this month the third set of Swiss bank account details of its nationals under an automatic exchange of information pact with Switzerland and this will include for the first time the data about real estate properties owned by Indians there, officials said on Sunday.

        Marking a key milestone in the Indian government's fight against black money allegedly stashed abroad, India will get this month the complete information on flats, apartments and condominiums owned by Indians in Switzerland as also on earnings made from such properties to help it look into tax liabilities associated with those assets.

        The move assumes significance on the part of Switzerland as well as the European Alpine nation is trying hard to reposition itself as a key global financial centre while warding off the long-persisting perception about the Swiss banking system being an alleged safe haven for black money.

        While it would be the third time that India will get details about bank accounts and other financial assets held by Indians in Switzerland, it will be the first time that the information being shared with India would include information about the real estate assets.

        While the Swiss government has agreed to share details of real estate assets, the information about contributions to non-profit organisations and other such foundations, as also details on investments in digital currencies still remain out of bounds from the automatic exchange of information framework, officials said.

        Experts and those engaged in the business of attracting investments to Switzerland said the move would help clear misconceptions about all fund inflows into Swiss assets being illicit and would go a long way in establishing Switzerland as a preferred investment destination, including for real estate properties.

        Himanshu, Founder and CEO of Switzerland For You SA, the parent firm of IDDI Investments, which is engaged in the business of attracting investments from India and other countries to Switzerland including in startups and real estate, said transparency has its own virtues and the proposal of the Switzerland government to share information about property ownership of foreign clients with other countries including India is welcome.

        "We find no valid reason for Swiss authorities to hide such information. After all, the ownership of property is not something which can be kept under wraps," said the India-origin entrepreneur who goes by his first name only and is settled in Geneva for many years.

        "Sharing of such information with other countries under AEOI will bring in more transparency and act as deterrence for those intending to buy Swiss properties from ill-gotten wealth. The move will go a long way in making Switzerland an attractive investment destination," he added.

        India had received the first set of details from Switzerland under AEOI (Automatic Exchange of Information) in September 2019. It was among 75 countries to get such information that year.

        In September 2020, India received the second set of Swiss bank account details of its nationals and entities, along with 85 other recipient countries with whom Switzerland's Federal Tax Administration (FTA) exchanged information on financial accounts within the framework of global standards on AEOI last year.

        From this year, Switzerland's Federal Council, the country's top governing body, has decided to implement a key recommendation of the Global Forum on Transparency and Exchange of Information for Tax Purposes, under which Swiss authorities will also share details about investments made by foreigners in the Swiss real estate sector.

        However, some other recommendations of the Global Forum, including about sharing of information on digital currency accounts and contributions made to foundations and non-profit organisations are yet to be accepted and therefore those details would not be shared by Switzerland with India or any other countries for now.

        Hectic lobbying is underway globally to convince Switzerland to start sharing information about digital currency accounts and contributions made to non-profit entities as well.

        In each of the last two years, Switzerland has shared details about nearly three million financial accounts with various jurisdictions, while the count is expected to be higher this year.

        For the last two years, India has been among prominent countries with which Switzerland has shared details about financial accounts of clients of Swiss banks and various other financial institutions, while it is also expected to figure high this year with regard to details about real estate properties.

        Resident and non-resident Indians, as well as Indian companies, would account for a sizeable number in the overall list of those figuring in this year's exchange of information by Switzerland, officials privy to the development said.

        Besides, Swiss authorities have already shared information about more than 100 Indian citizens and entities so far this year on receipt of requests for administrative assistance in cases involving probes into financial wrongdoings including tax evasion, the officials added. This count has been similar in the past few years.

        These cases mostly relate to older accounts that might have been closed before 2018, for which Switzerland has shared details with India under an earlier framework of mutual administrative assistance as Indian authorities had provided prima facie evidence of tax-related wrongdoing by those account holders. AEOI is applicable only to accounts that are active or were closed during 2018.

        Some of these cases relate to entities set up by Indians in various overseas jurisdictions like Panama, the British Virgin Islands and the Cayman Islands, while the individuals include mostly businessmen and a few politicians and erstwhile royals as well as their family members.

        The officials, however, refused to share details about the exact number of accounts or the quantum of assets held in the accounts held by Indians, for which the information has been shared with India, citing strict confidentiality clauses governing the exchange framework.

        The information shared by Swiss authorities includes identification, account and financial information, such as name, address, country of residence and tax identification number, as well as information concerning the reporting financial institution, account balance and capital income.

        The exchanged information allows tax authorities to verify whether taxpayers have correctly declared their financial accounts in their tax returns.

        The 86 countries covered under the AEOI in 2020 included 11 new jurisdictions -- Anguilla, Aruba, Bahamas, Bahrain, Grenada, Israel, Kuwait, Marshall Islands, Nauru, Panama and the United Arab Emirates -- in addition to a list of 75 countries, with whom information was shared in 2019.

        Switzerland's first such exchange took place at the end of September 2018 and involved 36 countries, but India did not figure in the list at that time.

        Nearly 10,000 entities, including financial institutions such as banks, trusts and insurers, as also condominium and apartment owners' associations are expected to have shared details about their overseas clients with the Federal Tax Authority of Switzerland for further sharing with foreign jurisdictions.

        Switzerland has committed itself to adopt the global standard for the international automatic exchange of information in tax matters. The legal basis for the implementation of AEOI in Switzerland came into force on January 1, 2017.

        However, AEOI only applies to accounts that are officially in the name of Indians and they might include those used for business and other genuine purposes.

        The Global Forum of the Organisation for Economic Cooperation and Development (OECD) reviews AEOI implementation.

        According to experts, the AEOI data received by India has been quite useful for establishing a strong prosecution case against those who have any unaccounted wealth, as it provides entire details of deposits and transfers as well as of all earnings, including through investments in securities and other assets.

        On condition of anonymity, several officials said the details relate mostly to businessmen, including non-resident Indians now settled in several South-East Asian countries as well as in the US, the UK and even some African and South American countries.

        A Swiss delegation was in India in August 2019 before the first set of details could get shared and the two sides also discussed possible steps to expedite the execution of tax information-sharing requests made by India in specific cases.

        It is feared many Indians might have closed their accounts after a global crackdown on black money led to Switzerland buckling under international pressure to open its banking sector for scrutiny to clear the long-held perception of Swiss banks being safe haven for undisclosed funds.

        Switzerland agreed to AEOI with India after a long process, including a review of the necessary legal framework in India on data protection and confidentiality.












        black money in Switzerland: Real estate assets' information to be included in third set of Swiss bank details, Real Estate News, ET RealEstate (indiatimes.com)
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