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TRANSCRIPT
09-August-2019
Page 2 of 34
CREDAI Bengal Daily News Update | 09.08.19
DHFL says it may not be able to fulfill immediate debt payments
This comes days after the company said its creditors would not have to take any haircut on
principal payments under its resolution plan.
India's debt-laden shadow bank Dewan Housing Finance Corp Ltd (DHFL) on Thursday said it may
not be able to fulfill its debt obligations due in the near future.
This comes days after the company said its creditors would not have to take any haircut on principal
payments under its resolution plan.
DHFL, the fourth-biggest housing finance company in India, has roughly 1 trillion rupees ($14.15
billion) of debt and is in the process of seeking lender approval on a restructuring designed to help it
ride out a liquidity crunch and restart its lending business.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-says-it-may-not-be-able-to-fulfill-immediate-debt-payments/70590666
Page 3 of 34
Puravankara forays into co-living Space
The Bengaluru-based company, which focuses mainly on residential housing, will soon launch
its first co-living project in Goregaon, Mumbai, spread over 350,000 sq ft.
Real estate developer Puravankara is venturing into the co-living and warehousing segments to
expand its business, its top executive said.
The Bengaluru-based company, which focuses mainly on residential housing, will soon launch its first
co-living project in Goregaon, Mumbai, spread over 350,000 sq ft.
―Going ahead, the buying behaviour of millennials will change. We are right now deciding whether
we should float our own brand or tie up with an operator,‖ said the company‘s MD Ashish R
Puravankara.
For its warehousing foray, Puravankara has entered into an agreement with Morgan Stanley‘s real
estate investment arm to jointly fund and develop warehousing assets across Mumbai, Chennai and
Bengaluru.
―The partnership is solely opportunity-based. We are currently evaluating a land parcel jointly in
Bengaluru,‖ he said.
The firm‘s first warehouse, spread across 42 acres, is coming up in Chennai. Morgan Stanley Real
Estate Investing, the global private real estate investment management arm of Morgan Stanley, has
been an active property investor for over two decades. Globally, it manages around $471 billion in
assets.
Puravankara also plans to double its commercial and retail portfolio to 10 million sq ft by 2023. The
builder has already acquired land in Bengaluru, Mumbai, Pune and Hyderabad to expand its
commercial portfolio.
The realty developer plans to launch 11.06 million sq ft over the next 12-15 months, with most of that
coming under its premium affordable housing segment Provident.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/puravankara-forays-into-co-living-space/70583522
Page 4 of 34
―Currently, 50% of the company‘s revenue comes from Provident and we expect that to go up further.
Five years from now, Provident will become the largest housing company in India,‖ said Kuldeep
Chawla, CFO, Puravankara.
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Page 5 of 34
NBCC's net profit dips 38% in Q1 FY20
Dhawan & Company, the independent auditor of NBCC, however pointed out that four
unregistered transactions were noticed in one of its subsidiaries, HSCC, in the first quarter.
NBCC witnessed a dip of 38 per cent in its net profit during the quarter ended June 2019. Its profit
after tax (PAT) stood at Rs 51.46 crore as against Rs 82.85 crore it recorded in Q1 FY19.
The company's net income stood at Rs 1,941.73 crore during the said quarter, a dip of 16 per cent
from Rs 2,307.81 crore it registered in the similar quarter last year.
Of the total income, it generated revenue worth Rs 1,801.78 crore from Project Management
Consultant (PMC) segment while the real estate and Engineering, Procurement & Construction (EPC)
segments generated revenue of Rs 4.83 crore and Rs 79.13 crore respectively.
In one of its Joint Venture (JV), NBCC R.K. Millen JV, the company has received an amount of Rs
15.69 crore under the arbitration award in favour of the company during the year 2018-19. "However,
due to pending decision in Delhi High Court, the same is not adjusted against the investments," the
company said in its BSE filing.
Dhawan & Company, the independent auditor of NBCC, however pointed out that four unregistered
transactions were noticed in one of its subsidiaries, HSCC, in the first quarter and were also confirmed
with the bank amounting Rs 1.89 crore against which a complaint has been lodged with SSP, Gautam
Buddha Nagar on May 13 2019.
In HSCC, reconciliation of three bank accounts with Indian Overseas Bank are under reconciliation as
well. "The un-reconciled bank balances may have impact on Profit & Loss and Balance Sheet of the
group and will be accounted in the year in which the un-reconciled transaction will be identified," said
the company in a BSE filing.
The company had acquired 100% of equity share capital in HSCC (India) (HSCC), which was
previously owned by Government of India, in December 2018.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/nbccs-net-profit-dips-38-in-q1-fy20/70591297
Page 6 of 34
Ghaziabad development body not to hike circle rates
Some anomalies, though, have been rectified — circle rates in green belts have been abolished
and those for parking areas have been standardised across the district.
For the third year in a row, the district administration has decided not to hike circle rates.
Some anomalies, though, have been rectified — circle rates in green belts have been abolished and
those for parking areas have been standardised across the district.
Circle rate is the minimum value at which sale or transfer of property takes place. ―The circle rates for
2019-20 will come into effect from Thursday and this time again they have not been hiked. They
remain unchanged across the district,‖ KK Mishra, AIG, stamp and registration department, said,
adding, ―We found a few discrepancies which we have done away with this time.‖
In Ghaziabad, the circle rate of parking space is usually 3% of the area‘s circle rate. ―But in areas like
Sadiq Nagar in Raj Nagar Extension, Rajender Nagar and a few others, we were charging 4%. It was
putting unnecessary burden on buyers,‖ said Mishra.
In areas like Sahibabad, Indirapuram, Vaishali, Ramprastha and Jawahar Park, which are under the
jurisdiction of sub registrar 3, there was a provision under which circle rates of green belts were fixed
at Rs 10,000/sqm.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad-development-body-not-to-hike-circle-rates/70590809
Page 7 of 34
However, sale or purchase of property in green belts is not permitted. ―Fixing circle rate in green belt
was illogical as no one is allowed to buy property there as per an NGT order. We have removed this,‖
said Mishra. Circle rate in Kaushambi residential area will be between Rs 72,500/sqm and Rs
79,700/sqm. Rates under commercial head will vary from Rs 1,26,000/sqm to Rs 1,38,000/sqm. In
Indirapuram, residential rates will be between Rs 66,500/sqm and Rs 73,100/sqm and commercial
rates will be Rs 96,000/sqm to Rs 1,86,000/sqm.
In Vasundhara, the rates under residential category are between Rs 56,500/sqm and Rs 62,100/sqm
and between Rs 96000/sqm to Rs 1,20,000/sqm under commercial category. The revenue target set by
the government from stamp duty for 2019-20 is Rs 1,626 crore as against Rs 1,442 crore in 2018-19.
―In 2018-19, we were able to achieve about 88% of the target,‖ said Mishra.
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Page 8 of 34
Godrej Properties reports net profit of Rs 90 crore in Q1 FY20
Total income of the real estate player decreased by 33 % YoY to Rs 708 crore in Q1 FY20 over
Q1 of FY19.
Godrej Properties on Thursday reported a 162 per cent year-on-year rise in consolidated net profit at
Rs 90 crore for the quarter ended June, 2019.
Total income of the real estate player decreased by 33 per cent YoY to Rs 708 crore in Q1 FY20 over
Q1 of FY19.
―In June of this year, we successfully raised rupees 2,100 crore through a Qualified Institutional
Placement. Our timely equity raise has significantly bolstered our balance sheet which we believe will
enable us to strengthen our portfolio with new projects at attractive terms.
The total value of bookings in Q1 FY20 stood at rupees 897 crore. Given our exciting launch pipeline,
we are confident of delivering significant increase in sales numbers in the months ahead,‖
said Pirojsha Godrej, Executive Chairman, Godrej Properties.
During the Q1 FY20 the firm witnessed total booking value of Rs 897 crore and total booking volume
of 1.35 million sq. ft. as compared to total booking value of Rs 820 crore and total booking volume of
1.17 million sq. ft. in Q1 FY19.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/godrej-properties-reports-net-profit-of-rs-90-crore-in-q1-fy20/70587374
Page 9 of 34
Gurugram: DTCP to cancel OCs of 20 buildings for flouting norms
The DTCP recently conducted a survey in the licensed colonies along Golf Course Road (from
MG road till Ghata) and found commercial activities being carried from at least 20 residential
buildings.
Occupation certificates (OC) of 20 residential buildings are likely to be cancelled by the department of
town and country planning (DTCP) for flouting building norms.
The DTCP recently conducted a survey in the licensed colonies along Golf Course Road (from MG
road till Ghata) and found commercial activities being carried from at least 20 residential buildings.
The survey report claims that commercial activities were being carried out from 80 per cent of the
residential buildings in the area.
District town planner (planning) RS Batth said that around 50 residential buildings in the licensed
colonies were carrying out commercial activities. ―We have already cancelled the OCs of 30 buildings
and around 20 new buildings, that were identified in the survey, have been issued notices,‖ he said.
He added that the defaulters have been directed to furnish documents (permission certificate) that
justify the usage of a residential building for commercial purpose. ―In case they fail to furnish relevant
documents, their OC will be cancelled,‖ he said.
DTCP director KM Pandurang said the district town planners have been directed to check the menace
of commercial and other uses of the residential buildings on Golf Course Road.
The move comes after the department received several complaints highlighting the issue of residential
buildings being used for commercial purposes, causing loss to the state exchequer to the tune of
several crores every year.
As per the rules, commercial activities are not allowed in residential areas, be it licensed colonies that
come under the DTCP or plots in sectors falling under Haryana Shahari Vikas Pradhikaran (HSVP).
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/gurugram-dtcp-to-cancel-ocs-of-20-buildings-for-flouting-norms/70587574
Page 10 of 34
Capital gains tax exemption available even if loan used for new house:
ITAT
Capital gains are taxable under the Income-tax (I-T) Act. If on sale of a residential house (which
has been held for at least two years), the taxpayer makes a profit, then such profit is treated as a
long-term capital gain (LTCG).
The Mumbai bench of the Income-tax Appellate Tribunal (ITAT) has recently held that the
investment-linked capital gains tax exemption, which is available on purchase of a new house, cannot
be denied merely because the taxpayer has utilised a home loan instead of the sale proceeds of his old
house.
Capital gains are taxable under the Income-tax (I-T) Act. If on sale of a residential house (which has
been held for at least two years), the taxpayer makes a profit, then such profit is treated as a long-term
capital gain (LTCG). This gain is taxable at 20% with an adjustment for inflation, referred to as
indexation benefit.
Section 54 of the I-T Act provides for investment-linked capital gains tax exemption. If an investment
is made in another house in India, within the stipulated period of time, then the ‗cost of the new
house‘ is deducted and only the balance component of the LTCGs is taxable. Such deduction results in
a lower I-T outgo. If the amount of the capital gain is equal to or less than the cost of the new house,
the entire sum of LTCG is not taxable.
The new house needs to be purchased either within a period of one year prior to or two years from the
date of sale of the old house. This tax benefit is also available if the taxpayer within three years after
the date of sale of the old house constructs a new residential house.
In the case decided by the ITAT on August 2, Manish Sinha, the taxpayer, had claimed a capital gains
tax exemption under section 54, arising on sale of his old house. Instead of using the sale proceeds
aggregating to Rs. 55 lakh for investment in the new house, he utilised a home loan of Rs. 40 lakh
taken from HDFC Bank.
The tax tribunal noted that the only requirement to be eligible for exemption under section 54 is that
the taxpayer should purchase or construct the new house within the prescribed time. This condition
had been complied with by Sinha.
Gautam Nayak, tax partner at CNK & Associates, a firm of chartered accountants says: ―There is no
identity of funds required for claim of exemption. Section 54 recognises the fungibility of funds. In
fact, it even permits purchase of a new residential house up to one year prior to sale of the old
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/capital-gain-exemption-available-even-if-home-loan-used-for-new-house-itat/70597323
Page 11 of 34
residential house, where obviously the same funds from the sale could not have been used.‖
Thus, merely because the taxpayer had availed of a housing loan from the bank, his claim for
exemption under section 54 cannot be denied, held the ITAT, which also relied on past judicial
decisions.
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Page 12 of 34
Noida: Official faces suspension for illegal registries in Basai
The DM has written to the principal secretary and inspector general of registration department
in this regard.
The district magistrate on Wednesday ordered suspension of a sub registrar after a probe found that he
had allegedly registered 21 properties illegally in Basai villagethat were owned by Noida Authority.
The DM has written to the principal secretary and inspector general of registration department in this
regard. In his letter, a copy of which is with TOI, the DM sought an inquiry into the matter and said
the department suspects pressure from land mafia in the district for getting these registries done.
―In this area, registration is only allowed under category 12 and 62 related to title rights and
residential land, respectively. However, no registry of category 11 or unique code 11 property can be
done as that is government land. We found that sub registrar Hemendra Kumar registered 21 such
properties illegally within one month of his posting here,‖ said B N Singh, district magistrate.
He said Basai and neighbouring areas have land mafia groups and cases are also registered against
some. Officials are expected to verify details before registration of property, he said. However, illegal
registries were found to have been done throughout July, officials said. ―We have asked the board of
revenue for an inquiry and posting of another official,‖ he said.
_________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/noida-official-faces-suspension-for-illegal-registries-in-basai/70588277
Page 13 of 34
Maharashtra urban department to merge Nagpur civic body and NIT
The civic body is likely to get all the properties of the NIT after the merger.
The state‘s urban development department (UDD) has reportedly finalized process to merge Nagpur
Improvement Trust (NIT) with the Nagpur Municipal Corporation(NMC).
The civic body is likely to get all the properties of the NIT after the merger.
The UDD held a meeting with the officials of NMC and NIT at Mantralaya in Mumbai on
Wednesday. Now, the UDD will submit its report to CM Devendra Fadnavis. The UDD will issue a
notification announcing the merger after CM‘s approval.
In a meeting held on July 4, Fadnavis had set a deadline of August 15 for merging NIT into NMC.
Sources from the NMC and NIT told TOI that the civic body would get properties and also build-
operate and transfer (BOT) projects of the NIT. ―All layouts will be transferred from NIT to NMC.
Open spaces, gardens, playgrounds, halls, swimming pool etc under NIT‘s possession will also be
transferred to the NMC. BOT projects like parking plaza, Kalamna hall, private bus terminal etc will
also be handed over to the NMC. Some vacant land of NIT will be transferred to Nagpur Metropolitan
Region Development Authority (NMRDA) for the latter‘s revenue source,‖ sources said.
Sources added that employees of the NIT will get three option, either to work with NMRDA, NMC or
go for voluntary retirement scheme (VRS).
The fate of NIT‘s ground rent being levied annually on leasehold plots and flats could not be known.
Similarly, the decision on stamp duty revenue being earned by the NIT would be known only after
issuance of the notification.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maharashtra-urban-department-to-merge-nagpur-civic-body-and-nit/70588880
Page 14 of 34
Government institutions top list of property tax defaulters in Panchkula
Records of the civic body revealed that the top defaulter of the property tax was Shalimar Mall,
which owes the MC Rs 68 crore.
Government institutions are among the top defaulters who have not paid property tax to the municipal
corporation. Sources said office of the DSP, Gymkhana Club, Shakti Bhavan, all in Sector 6, Shalimar
Mall and Police Community Club, Sector 14, are among the top defaulters of the property tax.
Some municipal corporation officials said the target for the collection of the property tax 2018-19 was
Rs 9 crore in the budget but till date around Rs 1 crore has been collected in the kitty of the MC.
Records of the civic body revealed that the top defaulter of the property tax was Shalimar Mall, which
owes the MC Rs 68 crore.
Jarnail Singh, executive officer of the municipal corporation, said they were sending notices to the
institutions and residents who were in the defaulters' list. He said there was a sealing provision in the
norms of property tax. He said the Haryana government was conducting a survey of all cities in which
details of the property would be filled online and through online portal the bill would be generated
after the survey would be completed.
He further said at present the data on the basis of which the MC was acting upon defaulters was
almost 10 years old and there were many changes in the property which the authorities were not aware
of. He said time and again his office received a complaint that their tax was far more than the space
and the MC had to send a team to verify but after this survey there would be no issue and the
authorities could take stringent action against the violators.
Under Section 130 of the Haryana Municipal Corporation Act, 1994, a notice was issued MC
commissioner to the defaulters on Wednesday, which stated that, "You are informed that in case you
fail to pay property tax by August 31 the property mentioned in paragraph (1) of this order will be
attached and sold through public auction." The notice stated that it should be considered a final notice
as a number of notices had already been sent in the past also to the offices concerned.
As per the notice, the outstanding property tax is with respect to the buildings or properties of the
department concerned. A notice sent to the defaulters is available on the site of the municipal
corporation. It says that despite repeated requests no communication has come from the office
concerned, so due to that no option is left with the corporation except to seal this premises and further
to fix the auction of this property for sale as per provision of Haryana Municipal Corporation Act,
1994.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/government-institutions-top-list-of-property-tax-defaulters-in-panchkula/70590743
Page 15 of 34
Tamil Nadu Tenancy Act: Clueless authorities put landlords, tenants to
hardship
This has resulted in adjudicating officers, who are revenue department officials above the rank
of deputy collectors, performing the role of the authorities facilitating tenancy registrations.
Rent authorities, constituted to resolve disputes between landlords and tenants, are clueless about their
functions. While a section of the authorities was unaware about their responsibilities, many
underscored that they were ignorant about the procedures.
This has resulted in adjudicating officers, who are revenue department officials above the rank of
deputy collectors, performing the role of the authorities facilitating tenancy registrations. The rules of
the ambitious Tenancy Act that came into force in February brought the curtains down on rent control
courts, making rent authorities the first layer in the legal mechanism to resolve disputes over rental
issues.
A cross-section of rent authorities said lack of training has limited their role with regard to the Tamil
Nadu Regulation of Rights and Responsibilities of Landlord and Tenants (Amendment) Act, 2018.
―As of now, we are functioning as registration officers generating tenancy registration for the
applications. In some parts of the city, the respective rent authorities have not started the process of
issuing the tenancy registration number,‖ a rent authority in north Chennai said.
The Chennai collector had in May appointed eight rent authorities covering the 16 taluks in the city
with each authority, headed by officers above the rank of deputy collector, being assigned two taluks.
According to official sources, the authorities have not received any complaints from registered
applicants.
―There is absolutely no awareness about the act that mandates registration of all rental and lease
agreements among the public. We can only ask the complainants to approach the rent courts to redress
their grievances, due to our lack of training,‖ an rent authority official said.
T Sadagopan, president of Tamil Nadu Progressive Consumer Centre, said the rent authority is the
first legal body for redressal of rental and lease issues. Only appeals can be made in rent courts, he
added. The housing and urban development department could not be reached for comments.
____________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-tenancy-act-clueless-authorities-put-landlords-tenants-to-hardship/70597454
Page 16 of 34
Ghaziabad development body will issue CC only after structural faults
are rectified
GDA officer on special duty Sushil Kumar Choubey said the completion certificate will be
issued to the society only after structural faults are rectified and other requisite norms fulfilled.
Worried over cracks appearing in the pillars of all nine towers in the society, residents of GH-7
highrise apartments in Crossings Republik on Wednesday met Ghaziabad Development Authority
(GDA) officials and raised the issue.
GDA officer on special duty Sushil Kumar Choubey said the completion certificate will be issued to
the society only after structural faults are rectified and other requisite norms fulfilled.
He said the developer has assured the authority of getting the structural inspection done by IIT
Roorkee and the faults rectified at the earliest. ―The residents and the developer were both heard
during the meeting. The developer has been asked to submit a time-frame under which it plans to get
the inspection done by IIT Roorkee and faults rectified,‖ Choubey said.
There are 1,980 flats in nine towers of the society, and nearly all of these have been occupied after
possession first started in 2010-11. A resident claimed that the cracks first started appearing after an
earthquake in 2012.
Rohit Chaudhary, president of the GH-7 RWA, said, ―For the past several years, we have been
pursuing this matter with the Crossings Infra Private Ltd (CIPL), a group of private developers that
provides and maintains basic amenities in the township for a monthly payment.‖
He added that in April, they were not informed about excavation of pits near tower 4, following which
they had sought a clarification from CIPL. ―We suspected that the work was related to retrofitting to
strengthen the structure but we were not given any intimation by the consortium,‖ Chaudhary said. In
June, a clarification was once again sought from CIPL through a letter by Crossings Republik
Infrastructure Apartment Owners Association. It was stated that residents of the society were worried
as the work, it seemed, was not part of regular maintenance, but a structural retrofitting. The
association also sought to know the details of the agencies appointed to carry out the work.
However, when they did not get a reply from CIPL, the residents complained to GDA. When
contacted, Ishwar Tyagi, CIPL vice-president, said, ―We have agreed to the directions and will submit
the report in the stipulated time period. The concerns of the residents will be addressed.‖
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/ghaziabad-development-body-will-issue-cc-only-after-structural-faults-are-rectified/70585591
Page 17 of 34
Panchayat presidents misappropriating PMAY subsidy funds in Tamil
Nadu
In many cases dead people were shown as beneficiaries and funds were siphoned off. In some
cases, local officials looted funds without giving it to the beneficiaries.
At least five cases of elected panchayat presidents themselves misappropriating subsidy funds under
the Prime Minister‘s housing scheme – Pradhan Mantri Awas Yojana (PMAY) – have come to light in
five districts of the state.
Directorate of Vigilance and Anti-Corruption (DVAC) sources said the five cases revealed how
panchayat presidents, vice-presidents and local officials, who are mandated to verify antecedents of
the beneficiaries, siphoned off funds running into several lakhs of rupees in 2015-16. The cases,
however, were registered in June and July 2019, after preliminary inquiries by DVAC.
In many cases dead people were shown as beneficiaries and funds were siphoned off. In some cases,
local officials looted funds without giving it to the beneficiaries. In another case, officials took bribes
to add ineligible people as beneficiaries. The central government funds were rigged through the Public
Financial Management System (PFMS), DVAC said.
In a case in Nagapattinam, a panchayat president cited his own dead father as a beneficiary and took
the funds. He also sanctioned home subsidies for his second wife and daughter-in-law, and allotted Rs
70,000 each. This fraud, however, was stopped by bank officials who found that the duo received
government flood compensation only a few months ago.
Some of these cases were investigated based on complaints forwarded by the CBI‘s Chennai unit, a
local CPM leader and an RTI activist. FIRs have been registered by the Tuticorin, Nagapattinam,
Pudukottai, Thanjavur and Villupuram units of DVAC. The total value of the fraud is around Rs 40-
50 lakh in these cases alone. Under these central housing subsidy schemes, only people below poverty
line (BPL), having a small piece of land and living in non-pucca houses, are eligible for a maximum
subsidy of Rs 1.2 lakh.
The money is disbursed in 3–4 installments based based on the progress of construction. This is
executed and audited by the rural development and Panchayat Raj department of Tamil Nadu. As per
rules, the beneficiaries have to be identified and approved by the village panchayat, where a resolution
has to be passed mentioning the names of beneficiaries.
In Villupuram, a woman who benefitted under a similar scheme in 2010 was added as a beneficiary in
2015, while an 18-year-old living with his government servant-father also received Rs 1.2 lakh.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/panchayat-presidents-misappropriating-pmay-subsidy-funds-in-tamil-nadu/70588105
Page 18 of 34
Another beneficiary got the money despite having a concrete house.
In Thanjavur, DVAC is chasing a Rs 24 lakh scam, which involves money going to people who had
already built houses, those claiming money for building two houses and a government staff benefitting
from it. In Tuticorin, the PMAY and CM‘s solar-powered green-house scheme (CMSPGS) funds were
also misappropriated by a dead man‘s relative, DVAC found.
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Page 19 of 34
DDA to refund unsuccessful candidates' money in a week
Even in the final draw of lots, out of 10,294, only 8,438 flats were allotted in various categories
from 45,012 applicants.
The DDA on Wednesday said it has planned to refund the registration amount in a week's time to
candidates who had unsuccessfully applied to the Housing Scheme, 2019. The Delhi Development
Authority(DDA) had on July 23 held the draw of lots for new online scheme for which only 10,294
flats were put on offer, out of the original kitty of nearly 18,000 units.
Even in the final draw of lots, out of 10,294, only 8,438 flats were allotted in various categories from
45,012 applicants.
"The applicants who were not successful in getting flats under the DDA Housing Scheme, 2019 will
not have to wait long for the refund of the registration amount as it will be refunding the amount
within a week positively," the DDA said in a statement.
Necessary instructions have already been issued to the designated banks to ensure refund of
registration amount to the unsuccessful applicants within a week, it said in the statement.
Besides, the successful applicants can also exercise the option of surrendering allotment or getting
refund of the registration amount without any deduction, up to 15 days from the date of issue of
demand-cum-allotment letter, issued on the DDA website, it said.
The DDA Housing Scheme, 2019 was launched on March 25, offering flats across four categories.
The deadline for application was extended by a month till June 10, after getting a low response. The
deadline for the same was May 10 earlier.
The flats were on offer in four categories - HIG, MIG, LIG and EWS. Of the 45,012 final applicants,
36,409 belonged to general category, 5,021 Scheduled Castes and 2,025 Scheduled Tribes and 97 war
widows, among others.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/dda-to-refund-unsuccessful-candidates-money-in-a-week/70584275
Page 20 of 34
Over 26,000 buildings lack rainwater harvesting system in Madurai
The 3.20 lakh assessments include residential houses, commercial buildings and various
government buildings, officials from the civic body said. So far, 60,743 assessments have been
checked.
The Madurai Corporationhas identified 26,571 buildings without rainwater harvesting (RWH) system
in the ongoing exercise of checking as many as 3.20 lakh assessments under the Jal Sakthi Abhiyan, a
central government scheme to conserve water.
The 3.20 lakh assessments include residential houses, commercial buildings and various government
buildings, officials from the civic body said. So far, 60,743 assessments have been checked.
Notices have been served to the 26,571 buildings to create RWH system in 15 days time. Officials
said that another round of inspection will be carried in these buildings to find out whether the system
has been implemented. Officials said that notices have also been served to 6,504 more buildings,
where RWH system is in place, but not in working condition. They too have to renovate the structure
before the deadline.
Eight weeks have been fixed to inspect all the buildings and assess RWH system. The inspection work
began from the third week of July and a target of 40,000 assessments were fixed for each week, with
10,000 for each of the four zones of the corporation, officials said.
The civic body first inspected its own building in order to set an example for other buildings. While
most of the buildings had the facility, a few required revamping, which has been completed now.
―There are as many as 602 buildings belonging to the corporation. Of these, 382 had
functional rainwater harvesting system and 66 buildings with non-functional RWH. All of them have
been renovated,‖ an official said.
Another official said that building owners will be given adequate time to renovate or install RWH
system. Those who fail to comply with the rule will be taken to task. In such cases, the corporation
itself will install the facility and collect the money from the owners.
―There is already a state government rule, which mandates buildings to have rainwater harvesting
structures. Many buildings, which have the structure at present had them installed because of the rule.
Under the Jal Sakthi Abhiyan, it is being reinforced,‖ the official added.
The official said that apart from houses and commercial buildings, many government (both state and
central) buildings too do not have RWH system.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/over-26000-buildings-lack-rainwater-harvesting-system-in-madurai/70587725
Page 21 of 34
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Page 22 of 34
DDA to redevelop six more slums as per public-private partnership
model
Apart from carrying out the surveys, DDA will be roping in consultants to prepare detailed
project reports (DPR) of each slum redevelopment project.
After Kathputli Colony and Kalkaji Extension, Delhi Development Authority (DDA) will be carrying
out work on six new in situ slum redevelopment projects across the city based on the public-private
partnership model. The six locations are Rohini sectors 18 and 19, Kirti Nagar, Shalimar Bagh,
Dilshad Garden and Kusumpur Pahadi (near Vasant Vihar).
―We have engaged an agency to carry out surveys in the slum clusters at Rohini, Dilshad Garden,
Kirti Nagar and other areas to identify the beneficiaries as per Delhi Slum and JJ Rehabilitation and
Relocation Policy, 2015,‖ DDA vice-chairman Tarun Kapoor told TOI.
Apart from carrying out the surveys, DDA will be roping in consultants to prepare detailed project
reports (DPR) of each slum redevelopment project. ―We have already engaged a consultant for the
Dilshad Garden project and are in the process of engaging consultants for the others,‖ Kapoor said.
The land-owning agency will be engaging technical consultants-cum-transaction advisors for not only
the preparation of DPRs, but also initial feasibility reports and the bid documents. The projects would
be carried out on design, build, finance, operate and transfer basis.
The consultant will first conduct a feasibility study for determining the technical feasibility and
financial viability following which the projects would be awarded to a private entity selected through
a competitive bidding process.
―The redevelopment of slums situated on DDA land is being done to eventually make Delhi slum-free
and achieve the mission of housing for all by 2022,‖ a DDA official said. ―We are trying to attract
private investment by public-private partnership. We plan to reclaim encroached land and use it
optimally for creating maximum affordable houses and facilities,‖ he added.
There are 675 slums in Delhi out of which 499 are on central government‘s land, including DDA‘s. In
total, DDA will be carrying out rehabilitation work in 23 slum clusters in phases. The official said that
all beneficiary families of the in situ redevelopment projects will get a flat with two rooms, kitchen,
bathroom, water closet and balcony with basic amenities. ―We aim to provide a hygienic, healthy and
dignified lifestyle to the slum dwellers,‖ he added.
As per the public-private partnership model, a developer will be roped in to build housing facilities for
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/dda-to-redevelop-six-more-slums-as-per-public-private-partnership-model/70586636
Page 23 of 34
slum dwellers. In lieu of this, the developer will get a part of the vacated land for commercial
development.
The feasibility studies of the slum clusters will identify if there is enough land available to create
remunerative components of these projects.
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Page 24 of 34
Retailers look for rental relief as slowdown bites
With consumer sentiment at a low and sales sluggish, retailers are looking at renegotiating
rentals as part of their cost-cutting measures.
Ethnic-wear retailer Fabindia is said to have written to its various landlords seeking a renegotiation of
rentals. One of India‘s largest listed retailers plans to postpone paying upcoming rental increments.
With consumer sentiment at a low and sales sluggish, retailers are looking at renegotiating rentals as
part of their cost-cutting measures.
―We are going through a tough time,‖ said the top executive of one of India‘s largest retailers. ―We
are working on a strategy. First thing, we are postponing the rent increments that are coming… We
have discussed it at our last board meeting and there is no choice.‖
He said same-store sales growth — a performance measure for outlets that have existed for a year or
more — has fallen to below 5% at present from about 8-9% a year ago.
Retailers said things turned worse in July and even discounts of up to 50-70% didn‘t help much in
overcoming low consumer sentiment. According to a top executive of a fashion retailing group,
footfalls at stores have fallen by up to 20%.
―I think the landlords will also understand that business is slack,‖ he said, asking not to be identified.
He said things are relatively better at prominent malls where they have revenue sharing deals and do
not need to renegotiate.
―It is mostly for high street stores where we have pure rental agreements,‖ he said.
―A-category malls are still doing well but for other normal malls, they have seen a 3-7% drop in walk-
ins,‖ said Vasanth Kumar, MD of the Lifestyle department store chain. ―In normal malls where it is
not working out for us, we will reduce the space or release the area.‖
The Dubai-based group pruned the size of the Lifestyle store in Bhopal by 25% to 30,000 square feet.
It reduced the area of the Lifestyle outlet in Kalyan that stocks apparels by about 6,000 sq ft and
carved out a space to sell furniture and home products.
Fabindia has written to landlords seeking their ―cooperation‖ to make its business ―viable,‖ according
to a person familiar with the development. Fabindia did not respond to an email seeking comment on
the matter.
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/retail/retailers-look-for-rental-relief-as-slowdown-bites/70586748
Page 25 of 34
―We are going for renegotiation on properties where the occupancy costs are high and where rentto-
revenue ratio is high,‖ said the business development head of a large listed retailer who is directly
requesting for rent reductions. ―We are telling them that we cannot survive with the current level of
rents. If the developers don‘t agree, we don‘t have any other way but to shut the stores.‖
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Page 26 of 34
OBC, IDBI Bank cut MCLR up to 15 basis points
The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to
reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 per cent.
Oriental Bank of Commerce and IDBI Bank on Thursday announced a cut in the range of 0.05 to 0.15
percentage point in the marginal cost of funds based lending rates (MCLR) for various tenors.
The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to
reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 per cent.
Oriental Bank of Commerce has decided to decrease its MCLR by up to 10 basis points (0.10
percentage point) across various tenors, the bank said in a release.
The benchmark one-year MCLR is now 8.55 per cent, down by 0.10 percentage point from earlier
rate. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-
year MCLR.
The MCLR for other tenors, overnight to up to six-month, will be lower by 0.05-0.10 percentage
point.
IDBI Bank announced a reduction of 0.10 percentage point in its one-year MCLR to 8.95 per cent.
The three-month to three-year rates are down by 0.05-0.15 percentage point to 8.35-9.10 per cent.
The MCLR rates for overnight and one-month MCLR's have been kept unchanged.
The new MCLR of OBC will come to effect from August 10, while that of IDBI Bank will be in place
from August 12.
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Newspaper/Online ET Realty (online)
Date August 09, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/obc-idbi-bank-cut-mclr-up-to-15-basis-points/70597361
Page 27 of 34
Ultratech Cement's net profit up 91% in Q1 FY20
The company's net income stood at Rs 10,308.79 crore during the said quarter, a growth of 15
per cent from Rs 8,972.85 crore it registered in the similar quarter last year.
Ultratech Cementwitnessed an increase of 91 per cent in its net profit during the quarter ended June
2019. Its profit after tax (PAT) stood at 1,208.03 crore as against Rs 631.21 crore it recorded in Q1
FY19.
The company's net income stood at Rs 10,308.79 crore during the said quarter, a growth of 15 per cent
from Rs 8,972.85 crore it registered in the similar quarter last year.
The National Company Law Tribunal (NCLT) approved the de-merger between Century Textiles and
the company on May 3, 2019.
During the quarter, the company has alloted 7,130 equity shares of Rs 10 each. As a result, the paid-
up equity share capital of the company has increased from 274,642,720 equity shares of Rs 10 each to
274,649,850 equity shares of Rs each.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/ultratech-cements-net-profit-up-91-in-q1-fy20/70592150
Page 28 of 34
AkzoNobel India's net profit increases by 31% in Q1 FY20
The company's net income stood at Rs 727.63 crore during the said quarter as against Rs 724.83
crore it had registered in the similar quarter last year.
AkzoNobel India reported a growth of 31 per cent in its net profit during the quarter ended June
2019. Its profit after tax (PAT) stood at Rs 57.14 crore as against Rs 43.51 crore it recorded in Q1
FY19.
The company's net income stood at Rs 727.63 crore during the said quarter as against Rs 724.83 crore
it had registered in the similar quarter last year.
Rajiv Rajgopal, managing director of the company said, "The company continues to see growth in
decorative paints and protective coatings."
During the said quarter, the company recognised depreciation on right-of-use assets amounting to Rs 4
crore and finance cost amounting to Rs 1.4 crore against lease rent of Rs 5.3 crore which would have
been recognised under Ind AS 17. Consequently, profit before tax for the said quarter is lower by Rs
20 lakh, the company said in a regulatory filing.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/akzonobel-indias-net-profit-increases-by-31-in-q1-fy20/70592407
Page 29 of 34
India Cements to acquire land in Madhya Pradesh to set up plant
Besides, the company was engaged in setting up a grinding unit near Allahabad in Uttar
Pradesh, India Cements Vice-Chairman and MD, N Srinivasan said.
India Cements Ltd is in the process of acquiring land as part of the cement major's move to set up an
integrated cement plant in Madhya Pradesh.
Besides, the company was engaged in setting up a grinding unit near Allahabad in Uttar Pradesh,
India Cements Vice-Chairman and MD, N Srinivasan said.
"We are in the process of buying the land required.We will also be setting up a grinding plant in Uttar
Pradesh. Investments will be Rs 1,300-Rs 1,400 crore," he said.
In November 2018, the company entered in to a share purchase agreement for acquiring the entire
shareholding of Springway Mining Pvt Ltd in a phased manner at a total consideration of Rs 182.89
crore.
The acquisition's objective was to set up a cement plant in Madhya Pradesh. Springway Mining is
involved in mining and quarrying business.
With the setting up of the two facilities, Srinivasan said it would take the firm's current capacity level
close to 20 million tonnes from 15-16 million tonnes.
The company was in the process of buying 500 acres with limestone deposits in Madhya Pradesh and
another 200 acres for setting up the cement plant, he said to a query. Commenting on the financials for
the April-June 2019 quarter, he said the cement business has improved overall.
"We had a very good first quarter. It is expected to continue the good performance in the coming
quarters with increasing demand for cement from housing and infrastructure sectors, steady cement
price and cost reduction measures," he said.
India Cements Wednesday recorded a jump in its standalone net profit to Rs 72.21 crore for the April-
June 2019 quarter from Rs 21.03 crore registered in the same period last year.
Total income for the April-June 2019 quarter grew to Rs 1,472 crore on a standalone basis from Rs
1,366.17 crore registered a year ago.
Expressing hope that it would be a good year for the cement sector, Srinivasan said, the industry was
poised for good growth as demand-supply was very good in West, North, South regions excluding
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/india-cements-to-acquire-land-in-madhya-pradesh-to-set-up-plant/70580501
Page 30 of 34
Andhra Pradesh. "We expect demand to revive post monsoon and once the new governments in
Andhra Pradesh and Centre finalise their action plans," he said.
Srinivasan said the company's EBIDTA (Earnings before interest, tax, depreciation and amortization)
increased by more than 50 per cent in April-June 2019 quarter which is being recorded after a gap of
11 quarters. During the quarter under review, the capacity utilisation of the company's manufacturing
facilities was at 7 per cent.
The overall cement sales including clinker was at 30.42 lakh tonnes for the quarter under review as
compared to 30.75 lakh tonnes in same quarter of previous year. With the improved selling price of
cement, the net plant realisation went up by 11 per cent during April-June 2019 over the same quarter
of previous year.
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Page 31 of 34
Lakshmi Vilas Bank working in close cooperation with Indiabulls
Housing
Early this year, the bank had announced its merger with Indiabulls Housing Finance Ltd in a
share-swap deal with an intent to create a combined entity with larger capital base and wider
geographical reach.
Private sector Lakshmi Vilas Bank (LVB) on Thursday said it was working in close cooperation with
the Indiabulls Housing FinanceLtd (IHFL)to ensure regulatory approvals were received at the earliest.
Early this year, the bank had announced its merger with Indiabulls Housing Finance Ltd in a share-
swap deal with an intent to create a combined entity with larger capital base and wider geographical
reach.
"We refer to our earlier announcement of a planned amalgamation with IHFL and Indiabulls
Commercial Credit Ltd. We have to say that the bank is working in close cooperation with IHFL to
ensure that all regulatory approvals are received at the earliest", the bank said in a regulatory filing on
Thursday.
On the recovery of bad loans, the bank said efforts to recover them have gained momentum and over
the last four quarters the bank had recovered Rs 783 crore bad loans.
The bank said consequent upon the completion of the preferential allotment of 1.68 crore equity
shares, aggregating Rs 188.16 crore to Indiabulls Housing Finance Ltd, the bank's tier I Capital and
Capital Adequacy Ratio was strengthened by 110 basis points.
"The Tier-I capital now comes to 5.56 per cent while the total CAR (capital adequacy ratio) to 7.56
per cent", it said
The bank is taking further steps to enhance the capital at the earliest, it said.
Shares of Lakshmi Vilas Bank ended at Rs 38.95 apiece down by 4.88 per cent over previous close
on BSE.
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Newspaper/Online ET Realty (online)
Date August 09, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/lakshmi-vilas-bank-working-in-close-cooperation-with-indiabulls-housing/70597423
Page 32 of 34
Tata Group's Taj Hotel chain to sell assets as economy weakens
Indian Hotels plans to dispose of certain budget inns in the nation’s non-metro areas.
The luxury hotel chain controlled by India‘s Tata Group is looking to sell some assets and avoid
owning new properties in an effort to further pare debt, as it braces for a slump in consumer spending.
Indian Hotels Co. Ltd., Tata‘s listed firm that operates the Taj brand, plans to dispose of certain
budget inns in the nation‘s non-metro areas and lease them back for a fee, Puneet Chhatwal, managing
director and chief executive officer said in an interview.
―We are moving our focus to more management contracts rather than constructing hotels of our own,‖
Chhatwal said. ―We have no plans to put our legacy and flagship properties under sale and lease
back.‖
The Mumbai-based company‘s measures to cut costs and liabilities come at a time growth in Asia‘s
third-biggest economy has cooled to a five-year low, while a lingering shadow-bank crisis damps
discretionary spending. The nation‘s biggest carmaker, Maruti Suzuki India, reported the worst sales
drop since 2012 in July. Besides the slowdown, the grounding of Jet Airways India Ltd. has also hit
Indian Hotels, forcing it to write-off some dues.
The chain, which operates New York‘s The Pierre and St. James Court in the U.K., has been reducing
debt in the past few years by selling assets including apartments purchased for Tata Group‘s
executives. Consolidated net debt stood at Rs 2,000 crore ($282 million) at the end of March, down
from as high as 31 billion rupees two years earlier, according to the hospitality firm.
The efforts to pare borrowings at the hotel chain are also part of a wider drive at India‘s biggest
conglomerate. Tata Motors Ltd., the owner of Jaguar Land Rover, has said it is looking at options for
the struggling British luxury brands. Tata Steel Ltd. is in the midst of a revamp of its European
operations.
The hotel operator aims to reduce ownership of properties to 50% by 2022, from 70% at present,
Chhatwal said. The sale and lease-back plans include as many as six hotels at the group‘s Ginger
budget brand and a similar number held by joint ventures and associate companies, he said.
Indian Hotels, currently operates 151 hotels, including the Taj Mahal Palace that became the target of
terrorists during the Mumbai siege in 2008.
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Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/hospitality/tata-groups-taj-hotel-chain-to-sell-assets-as-economy-weakens/70589944
Page 33 of 34
WeWork wanted Ashton Kutcher and Martin Scorsese for video deals
WeWork teamed up with Ashton Kutcher to pitch a television show to NBC based on the
contest, known as the Creator Awards, according to two people familiar with the talks.
For the past two years, WeWork Cos. has spent more than $40 million to host a series of startup pitch
competitions around the world. The real estate company asks contestants to pitch apps or creative
projects to celebrity panels of judges and compete for cash prizes, in between musical performances
from the likes of the Red Hot Chili Peppers. This year, it hoped to go much bigger.
WeWork teamed up with Ashton Kutcher to pitch a television show to NBC based on the contest,
known as the Creator Awards, according to two people familiar with the talks. The show would be
similar to Shark Tank and have camera crews follow contestants around the events. The project hasn‘t
panned out, though, and is currently on hold.
As WeWork prepares for an initial public offering as soon as next month, the founders want their
creation to be seen as much more than a real estate business. The New York company generates most
of its revenue from renting office space to workers but also runs a gym, an app for organizing social
gatherings and an elementary school. The pursuit of a television deal illustrates the flashy, and often
expensive, way the company approaches many aspects of its business, including marketing.
In another example that hasn‘t been previously reported, WeWork explored a collaboration
with Martin Scorsese, the Oscar-winning director of films such as The Departed and the forthcoming
The Irishman. WeWork executives discussed hiring Scorsese to direct a series of videos promoting the
brand this summer, according to two people familiar with the plan, who asked not to be identified due
to disclosure restrictions around the IPO.
The idea came directly from the founders: Adam Neumann, the chief executive officer; Rebekah
Paltrow Neumann, his wife and a cousin of actress Gwyneth Paltrow; and Miguel McKelvey, the chief
culture officer. Other directors were also considered, though it‘s not clear what decisions the company
ultimately made. Representatives for Scorsese and WeWork declined to comment.
Neumann, the CEO, frequently portrays WeWork as a cross between a lifestyle brand and a
technology business. For a meeting with Wall Street analysts a week ago, WeWork initially sent some
invitations to tech and internet analysts, though in the end, several who cover real estate were able to
attend, said a person who was there. The IPO is likely to be the biggest of the year after Uber
Technologies Inc. and is slated to run alongside a $6 billion debt facility. All that cash has attracted
the attention of the world‘s biggest banks, some of whose CEOs have personally courted Neumann for
a shot at the business.
Inside last week‘s analyst event at a WeWork office in Manhattan‘s financial district, Neumann and
Newspaper/Online ET Realty (online)
Date August 08, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/wework-wanted-ashton-kutcher-and-martin-scorsese-for-video-deals/70589129
Page 34 of 34
his lieutenants held court for close to three hours. During the presentation, Neumann told the audience
to think of WeWork like Amazon.com Inc.—starting off in one business but rapidly expanding to
others, even while unprofitable, according to the attendee, who asked not to be identified citing a
nondisclosure agreement. (Uber made a similar pitch on its IPO roadshow.) Neumann then joked that
he wanted to move away from Amazon comparisons because he‘d been using them too often.
Attendees were invited to pick from an array of swag, including mugs, T-shirts, black tote bags and
umbrellas printed with the company slogan, ―Do What You Love.‖
Neumann, a 40-year-old Israeli immigrant with dark, flowing hair, has a star power of his own.
During a question-and-answer session at the event, no analysts asked him about the controversial
deals in which WeWork leased space in properties owned by Neumann. At the end of the meeting,
Neumann posed for pictures with some attendees—an uncommon practice for an executive pitching
his company to analysts.
For years, Neumann has used celebrities and glitzy performances to reward employees and appeal to
potential members. Until recently, WeWork held an annual, multi-day festival for thousands of staff
and customers called Summer Camp. The parties featured Neumann delivering inspirational orations
onstage, as well as musical headliners such as Lorde, the Chainsmokers and Florence + the Machine.
The company also held annual winter gatherings for its workers, usually in Los Angeles.
WeWork started the Creator Awards in 2017 as a way to expand the company‘s reach to entrepreneurs
who aren‘t already customers. That year, WeWork spent $16.1 million on the project and invested an
additional $2 million in the winning companies, according to financial documents reviewed by
Bloomberg. Startups, nonprofits and artists competed for prizes at regional events, and the grand
winners in 2018 and 2019 were awarded $1 million each. The final event of the first competition
featured Neumann, self-help author Tim Ferriss and Miracle Mop inventor Joy Mangano as judges, a
fireworks show and a live performance from rapper Macklemore.
The next year, WeWork spent $24 million on the awards, a figure that doesn‘t include the cost of its
final show early this year. Judges at the finals in Los Angeles included Sean ―Diddy‖ Combs and
Kutcher, who‘s an actor, investor and personal friend of WeWork‘s CEO. The Red Hot Chili Peppers
played an hour-long set.
For the TV adaptation of the Creator Awards, WeWork held discussions with Kutcher to serve as a
producer, along with Guy Oseary, a talent manager for Madonna and U2 who also runs a venture
capital firm with Kutcher, people familiar with the deliberations said. WeWork held talks early this
year with executives from Comcast Corp.‘s NBCUniversal, the people said. Representatives for the
network and WeWork declined to comment. Representatives for Kutcher and Oseary didn‘t respond
to requests for comment.
WeWork classifies the Creator Awards as ―strategic marketing events,‖ according to a document
relating to a 2018 bond offering. It told investors that the series, held in Berlin, Seoul, Tel Aviv and
other international cities, is ―a critical means through which we express our key values—inspiration,
entrepreneurship, authenticity, tenacity, gratitude and togetherness.‖
(With assistance from Gerry Smith, Eric Newcomer and Lucas Shaw.)
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