Page 20 - Banking Finance January 2018

HOUSING

SEBI orders Rose Valley Promoter vs promoter: Curious case of a housing so-
refund ciety in Mumbai suburb
When the members of a housing society who had given their building for rede-
Sebi has ordered a refund of thou-
sands of velopment approached the Maharashtra Real
crores of Estate Regulatory Authority (MahaRERA) seek-
rupees ing possession of their flats from the developer,
to the their plea was dismissed. In MahaRERA's order,
investors the complainants were held as promoter (land-
owner) and even the developer that is the re-
who had
parked spondent was also held as promoter.
money in holiday membership plans Housing experts say that this definition of a member of a housing society as pro-
of the group as it declared those moter taken by MahaRERA needs to be looked into as the member gets extra
schemes illegal. space under redevelopment but not profit. Around 11 members of a project
named Shanti Niketan located in Vikhroli, approached MahaRERA, the members
Besides, Rose Valley Hotels and En-
tertainment Ltd and its directors in their complaint had stated that they have taken up redevelopment of their
building through the builder Matrix Constructions. The members further alleged
have been barred from the markets that the building was ready, but the developer wasn't handing them possession.
for four years.
Also, the directors have been re- Indiabulls Housing Fin raises Rs 1,000 crore from Yes
strained from holding positions of di- Bank
rectors or key management person-
nel at listed companies. Top-rated Indiabulls Housing Finance and transport), food security, clean
has raised Rs 1,000 crore by selling the energy, healthcare and vocational
As per the Sebi order, more than 21.9 country's first "Social Bonds" and will training.
lakh investors are believed to have in- use the proceeds in the low-cost or af-
vested in holiday membership plans, fordable housing sector. Private lender Rating company Crisil upgraded
Indiabulls Housing to a triple-AAA rat-
the latest available records showed. Yes BankBSE -0.64 % was the sole in- ing with a stable outlook in November.
In the balancesheet filed by the firm vestor in the bonds with a five-year A rating upgrade helps a company to
for 2012-13, an amount of around Rs maturity, said a top executive confirm- reduce its borrowing costs. The social
5,000 crore is reflected under other ing the matter. The securities have of- bonds did not fetch Indiabulls any spe-
fered 8.12% yearly.
current liabilities that were refund- cial cost benefit compared with other
able liability under the membership "The bond sale will act as a catalyst for domestic bonds. The company aims to
plan, Sebi said. However, it did not the social bonds market in India and increase lending by 30% this year and
mention the current liability. create a benchmark for future issues in plans to raise another Rs 10,000 crore
According to the regulator, various this space," Rana Kapoor, MD of Yes by tapping the debt securities market.
plans offered by the firm with a prom- Bank, told. "Affordable housing will Housing Finance has also received the
ise of return qualify as a Collective In- play a critical role in realising the Reserve Bank of India's approval to sell
vestment Scheme (CIS). After finding government's vision of Housing for $750 million worth of "masala bonds"
the funds mobilisation to be an ille- All."The bonds will be listed on the or rupee-denominated bonds, for which
gal CIS, Sebi ordered Rose Valley and National Stock Exchange and the BSE the end-use is planned to be low-cost
its directors -- Gautam Kundu, Ashok for secondary market trading. The gov- housing. The social affordable housing
ernment wants housing for all by 2022. bonds are in line with the Social Bond
Kumar Saha, Shibamoy Dutta and
Abir Kundu -- to wind up the 'Holiday Social Bonds are a debt instrument to Principles 2017 issued by the Interna-
raise funds exclusively to finance or re- tional Capital Market Association.
Membership' plans and refund the
money collected from the investors, finance select and eligible social KPMG in India is said to be providing the
projects such as affordable basic infra- assurance services on the use of the
with returns, within three months.
structure (water, sewers, sanitation proceeds.

20 | 2018 | JANUARY | BANKING FINANCE

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