NPAs in real estate will inch up in short term before settling: Keki Mistry

 

Keki Mistry, vice chairman and CEO at HDFC, said at a webinar on Thursday that the benign interest rate regime will continue for the next six to 12 months.

"Interest rates are at the lowest in the last four decades. Property prices have gone up in the last many years," Mistry said at a webinar organised by Naredco and APREA today.

Mistry said markets at present are distinguishing between strong property developers and weaker developers unlike in the past.

"In 2017 or 2018, the gap between lending rates given to AAA developers and AA developers was limited. But today it depends on the credit profile of developers," he said.

He said some developers had earned a bad name due to analyst reports, media reports on oversupply and so on.

"Weaker developers will find it difficult to raise funds unless they reduce leverage," he said, adding that more the leverage, the more the pain for developers.

He said restructuring may not help all developers as they may not meet conditions attached to restructuring .

Ajit Pawar absolved of corruption charge in Maharashtra irrigation scam

International News
Maharashtra's Anti-Corruption Bureau (ACB) has given a clean chit to NCP leader and former deputy chief minister Ajit Pawar in the Vidarbha irrigation scam.
The ACB, in its affidavit submitted in the Nagpur Bench of the Bombay High Court, has ruled out Pawar's involvement in cases of alleged irregularities in irrigation projects in the Vidarbha region.
The affidavit was submitted on November 27, a day before the Maha Vikas Aghadi (MVA) government of the Shiv Sena -NCP-Congress was sworn-in the state on November 28.
The court had asked the ACB to clarify its stand on the role of Pawar, a former Water Resources Development Minister, in these cases.

Pawar had also served as chairman of the Vidarbha Irrigation Development Corporation (VIDC), which had cleared irrigation projects in which irregularities were alleged....Read More

Month after results, Uddhav Thackeray takes oath as Maharashtra CM

Election News
The notable Shivaji Park in Mumbai is the origination of Shiv Sena and the play area of ages of cricket players, including Sachin Tendulkar. On Thursday evening, Shiv Sena boss Uddhav Thackeray started his innings here as boss pastor of Maharashtra, solidifying another non-Bharatiya Janata Party (BJP) alliance government in the nation.
Over a month after aftereffects of the Assembly decisions were proclaimed on October 24, Thackeray was confirmed in the midst of euphoric triumph drones by party supporters and sound of tutari (a conventional melodic instrument) on an uncommonly made stage with a post like stylistic theme and a statue of Maratha warrior ruler Chhatrapati Shivaji.
Six different pastors (Eknath Desai and Subhash Desai from the Sena, Jayant Patil and Chhagan Bhujbal from the Nationalist Congress Party and Balasaheb Thorat and Nitin Raut from the Congress) were likewise sworn in by Governor B S Koshiyari. Thackeray, who isn't an individual from either House of state assembly and the first from his family to accept a place of intensity, framed an impossible partnership, the Maharashtra Vikas Aghadi, with the Congress and the NCP to expect control.
Afterward, Thackeray held his first Cabinet meeting at Sahyadri Guest House. After the gathering, the new boss priest said his administration will declare a critical choice for offering alleviation to ranchers in the state in two days. He said the main choice of the Cabinet was to endorse Rs 20 crore for preserving Raigad Fort, which was the capital of Shivaji. "We can paint a superior picture in the event that we know the truth. We have looked for inputs. Ranchers lack anything, however just confirmations. We need to give solid assistance to ranchers," he told columnists after the gathering.

"We need to guarantee a climate in the state wherein no one will feel threatened," he said. The swearing-in service was graced by focal pioneers of the two partners....READ MORE

Uddhav set to take charge of Maharashtra with a deputy from NCP

Election News
Shiv Sena president Uddhav Thackeray will make vow as boss clergyman of Maharashtra on Thursday evening at the Shivaji Park here.
With the swearing-in of 59-year-old Thackeray, the state will have a main pastor from the Sena following 20 years.
The promise taking function will be held at the rambling Shivaji Park, where his dad and Sena organizer Bal Thackeray tended to his celebrated Dussehra rallies. The last Sena man to involve the central priest's seat was Narayan Rane in 1999, after Manohar Joshi, who in 1995 turned into the principal CM from the gathering.
The swearing-in function pursues long stretches of emotional political advancements, which incorporated a three-day government shaped by a sudden help from NCP pioneer Ajit Pawar, who has since come back to the Sharad Pawar-drove party overlay. The Sena, alongside the NCP and Congress comprised the 'Maha Vikas Aghadi' to frame a non-BJP government in the state. There is theory that Ajit Pawar might be accepted into the new Cabinet.
NCP pioneer Praful Patel on Wednesday said his gathering will get the vice president clergyman's post in the new Shiv Sena-drove government. The Congress will get the Assembly Speaker's post while the NCP will get representative Speaker's post, he said after a gathering of the 'Maha Vikas Aghadi'.
He likewise said that alongwith Sena boss Uddhav Thackeray, a couple of individuals from every one of the three gatherings will make vow as pastors.

There will be just a single representative CM's post in the administration, he included. An extraordinary session of the fourteenth state Assembly was held here on Wednesday where vow was managed to 285 recently chose individuals by professional tem Speaker Kalidas Kolambkar.....READ MORE

Maha Vikas Aghadi govt in Maharashtra could focus on farm debt waivers

Election News
The difference in monitor in Maharashtra could prompt enormous ranch obligation waivers and tasks getting slowed down, cautioned Macquarie.
Homestead pain and obligation waivers were a piece of the political decision battle by the Opposition parties in Maharashtra against the decision Bharatiya Janata Party (BJP) government. Presently, a union of the Shiv Sena, the Nationalist Congress Party (NCP) and the Congress, is set to frame the legislature and expected to address the ranch trouble. What's more, they will have sufficient financial space to do as such, Macquarie evaluated.
"Ranch advance waiver can conceivably be the main request of the matter of the new government," the financier said. Maharashtra's GDP of Rs 26.603 trillion had a financial shortfall of 2.1 percent in monetary year 2018-19 (FY19) and targets were set to keep it at a similar level for FY20.
"The Maharashtra government can do a waiver of Rs 500 billion (Rs 50,000 crore) spread over several years without rupturing farthest point of 3 percent set under FRBM Act," the financier stated, including that the vast majority of the open area banks would have introduction to Maharashtra's farming part. Indeed, even as there were no huge miniaturized scale fund foundations, littler helpful banks rule the horticulture credit advertise.
Maha Vikas Aghadi govt in Maharashtra could concentrate on ranch obligation waivers

Undertakings at high danger of getting slowed down incorporates the Mumbai-Ahmedabad fast rail alongside the Mumbai Nagpur Expressway. L&T was the leader in getting the rapid rail contract, however that may get nullified at this point. The Mumbai-Nagpur Expressway is part into 16 bundles, all of which have just been granted. In any case, the metro and air terminal ventures would almost certainly proceed as they are in cutting edge phases of fulfillment, yet the pace of execution could get influenced, Macquarie cautioned. Subsidizing for these undertakings are basically originating from multilateral organizations.....READ MORE

Supreme Court refuses Maharashtra govt's plea to close Enron investigation

Current Affairs:

The Supreme Court declined Maharashtra government’s plea to close the case of alleged bribing in the Enron-Dabhol power project. It was reported that the then bidders of the project, Enron, had paid money to politicians and bureaucrats to clinch the deal.

A three-judge Bench, led by Chief Justice of India (CJI) Ranjan Gogoi, while turning down the plea moved by the state, asked it to submit by March 13 a plan on how it intended to bring the case to a logical conclusion. The Bench also asked the state to submit details of the steps it had taken so far on the recommendations of a committee that has suggested judicial probe into the power project in 2001.
In 1992, US Energy conglomerate Enron started the process to set up a gas-fired power plant at Dabhol in Maharashtra. Work on the project soon ran into trouble on allegations of corruption and bribery at the highest levels. A new government took charge in Maharashtra in 1995 and on recommendations of a committee scraped the project. Enron then entered into arbitration with the government but came to a new agreement one year later.

Later in 2000, when another government took over, it stopped the payment of $22 million to Enron for December 2000. The state then sought to cancel the power purchase deal, which promoted Enron to stop work on phase-II of the project and sell phase-I.


 The Maharashtra government in 2001 had ordered another probe led by Indian Administrative Services (IAS) Officer Madhav Godbole. The committee criticised the renegotiated terms for the power plant and recommended a judicial inquiry to fix administrative and political accountability.