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Real estate barons betrayed people’s trust, pulled down a growth sector

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The Supertech Twin Towers in Noida that are supposed to be decimated next month is representative of the fall of the real estate czars in the recent past, especially in Delhi-NCR.

The real estate landscape in the region suffered multiple blows as leading names of the trade were mired in scandals in the recent past and some of them even landed in jail.

This is a story of how real estate barons have played with the system, betrayed people’s trust and created multiple crises.

Ashutosh Kashyap, Director, Advisory Services, Colliers India pre 2012, said the residential real estate dynamics of NCR were characterised by double-digit capital value appreciation coupled with robust absorption.

On one hand, prospective buyers were in a hurry to buy, apprehensive of price rise, while on the other hand, robust absorption motivated developers to go on a project launch spree.

In the absence of a proper regulatory regime (such as RERA, which came later), the financial ring-fencing of projects was not proper, which allowed developers to use booking money from one project to acquire more land, which was only based on the underlying premise that the robust absorption will sustain.

“The reason, most of these happened in Noida was because the city offered the option of staggered payment for allotted land. This allowed builders to accumulate and launch more projects in anticipation of robust demand. The residential real estate segment witnessed a prolonged muted period (till 2020-21), especially for the primary market. Most of the developers that built their pipelines on anticipated demand found it difficult to sustain this phase and what we see today is the result of the same,” Kashyap added.

A number of real estate czars have faced enforcement action and some even bankruptcy. This has in turn caused immense despair and hardship for home buyers stuck with incomplete projects having poured in their life savings.

Members of the Chandra family of the Unitech Group are in jail. The Supreme Court on Wednesday asked the Enforcement Directorate (ED) to propose steps to bring back homebuyers money amounting to Rs 5,000 crore diverted to tax havens, which was revealed in a forensic audit.

At the beginning of the hearing, Additional Solicitor General N. Venkataraman, representing the Centre-appointed board of the Unitech, submitted before a bench headed by Justice D.Y. Chandrachud that over a thousand crore is outside the country and some money should come back, which could be utilised for the purpose of construction, and the court should ask ED, what progress has been made so far.

In April last year, the ED attached movable and immovable properties worth over Rs 300 crore in 10 separate cases of money laundering.

The agency had said that Unitech Group had diverted proceeds of crime, which are over Rs 300 crore to Carnoustie Group and in turn, the entities of Carnoustie Group purchased several immovable properties from these funds.

In December 2019, the top court had directed the Centre to take over the management of Unitech by appointing independent directors after a forensic audit revealed that home buyers’ money worth over Rs 5,000 crore had been diverted to tax havens such as Cyprus. The diversion of money affected the completion of at least 74 projects and damaged the interests of nearly 12,000 homebuyers.

Also in jail is the Ambience Group owner Raj Singh Gehlot. An (ED) probe has revealed that the group has not made the obligatory contribution of Rs 462 crore for the construction of a Rs 1,272 crore luxury hotel project at Shahdara in the national capital, violating the loan conditions of a consortium of banks, led by the Jammu & Kashmir Bank.

National

CM Nitish meets Bihar Governor Arif Mohammad Khan, discusses key issues

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Patna, July 3: Ahead of the Bihar Assembly elections, Chief Minister Nitish Kumar met Bihar Governor Arif Mohammad Khan at Raj Bhavan on Thursday, and reportedly discussed key issues.

CM Nitish reached Raj Bhavan around 11 a.m., and the meeting lasted for about 30 minutes, during which several important administrative issues were discussed.

According to sources, the meeting primarily focused on the appointments of Vice Chancellors in universities across Bihar.

“This meeting was not political but related to higher education and the appointment of Vice Chancellors and other officials in the state’s universities,” sources said.

The Bihar government, ahead of the Assembly elections, is working to resolve issues across departments, including Higher Education, ensuring timely appointments, fund releases, and smooth educational activities.

The appointment of Vice Chancellors is considered crucial to avoid administrative bottlenecks during the election period.

Bihar Assembly elections are expected to be held in October-November this year, and the Election Commission of India may announce the schedule soon.

Before the elections, the Nitish Kumar-led government is keen to clear pending administrative issues to ensure smoother governance and to prevent disruptions in universities during the election season.

Several universities in Bihar are awaiting appointments and transfers of Vice Chancellors, registrars, examination controllers and other officials. The Governor, as Chancellor of state universities, along with the Chief Minister, play a key role in these appointments.

Arif Mohammad Khan took charge as the Governor of Bihar in 2025 after serving as the Governor of Kerala from 2022 to 2025.

A senior politician, Khan has previously held important positions in the Central government as a BJP leader.

This meeting holds significance as the state gears up for elections, with the government looking keen to complete critical institutional appointments before the Model Code of Conduct comes into effect.

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National

AAP’s decision to go solo in Bihar polls draws ‘publicity stunt’ jibe from INDIA bloc ally

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New Delhi, July 3: Aam Aadmi Party (AAP) chief Arvind Kejriwal’s announcement of contesting the upcoming Bihar Assembly elections alone has invited a slew of reactions from political parties. Various parties, its ally or adversary, reacted on expected lines; however, the harshest one came from the Congress party, its erstwhile alliance partner in the INDIA bloc.

From JD(U) to Congress and others, all elicited a common view that AAP remains a non-player in the Bihar electoral landscape and its political plunge will have no impact on the power equations there.

JD(U) leader Rajiv Ranjan said that AAP’s decision to contest all 243 seats in Bihar shows clear and deep cracks in the INDIA bloc.

“This alliance is already in ruins and is now headed for further decline, as Kejriwal has himself said that the INDIA bloc was formed for the 2024 elections,” he said.

He added that AAP’s foray into the Bihar arena will have a bearing on the INDIA bloc partners, including RJD, as Tejashwi Yadav and his party will find it difficult to rally support.

Congress leader Akhilesh Prasad Singh said this looks nothing more than a ‘publicity stunt’.

“AAP has no presence in Bihar, people don’t even know Kejriwal’s party name. By such announcements, he is trying to stay in the news. Kejriwal may be known to people here, but his party is non-existent in Bihar, he said.

Another Congress leader, Tariq Anwar, said AAP was welcome to contest elections in Bihar but warned of more backlash than support.

“Every party is independent to contest elections as per its own choice. AAP can also decide its fortunes in upcoming elections, but it is a fact that AAP has no base in Bihar, it has no elected representative in Bihar, even at the panchayat level,” he said.

“Deciding to take a political plunge in such a situation could incur more losses than benefits,” he added.

Notably, AAP supremo Arvind Kejriwal, addressing a press conference in Gujarat’s Gandhinagar on Thursday, said, “AAP will contest Bihar polls alone. The INDIA bloc was only for the Lok Sabha polls; there is no alliance with Congress now.”

When probed further, he said, “If there was any alliance, then why did Congress contest in Visavadar bypolls. They came to defeat us. BJP sent Congress to defeat us and cut the votes.”

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Rahul Gandhi questions Maha govt over farmer suicides, BJP counters with facts during Cong-NCP rule

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New Delhi, July 3: Leader of Opposition (LoP) in the Lok Sabha Rahul Gandhi on Thursday criticised the BJP-led Maharashtra government over farmer suicides and accused the Centre of ignoring their plight. This prompted a swift response from the BJP, which cited findings and facts about farmer deaths in the state during the Congress-NCP rule to set the record straight.

The political blame game on farmer suicides began over the Fadnavis government’s admission that 767 farmers committed suicide in the state in the past three months. The state government told the Legislative Assembly on Tuesday that 767 farmer suicides were reported in the state, primarily in the Vidarbha region.

The Congress MP used the farmers’ deaths to mount an attack on the Centre, accusing it of callousness and gross indifference to their plight. He said that 767 families have been devastated and shattered, but the government remains unmoved.

“Is this just a statistic? No. These are 767 shattered homes. 767 families that will never recover. And the government? Silent. Watching with indifference,” he asked on X.

Rahul further said the farmers are sinking deeper into debt every day, but the government continues to look away. Their plight remains ignored while there is no government assurance or promise on the Minimum Support Price (MSP) for agricultural products.

BJP IT cell chief Amit Malviya was quick to counter Rahul’s charge with facts and figures of farmers’ suicides, when the state was ruled by Congress-led governments in the past.

Amit Malviya said the Congress leader must think before blurting out baseless charges. He said that Rahul must look at the utter failures and misgovernance of the Congress-NCP governments, which saw a spate of farmer deaths during their reign.

Sharing details of farmers’ deaths, Amit Malviya stated that more than 55,000 deaths took place in the 15-year rule of the Congress-NCP government and asked, ‘Who was accountable for this?’

The graph shared by him, compiled with data gathered from NCRB and P. Sainath, shared details of ‘mass suicides’ in different government tenures, starting from 1999 to 2014.

“From 1999-2004, about 16,512 farmers committed suicide while from 2004-2009, about 20,566 farmers committed suicide while from 2009 to 2014, 18,850 farmers killed themselves,” it pointed out.

Notably, the Vidarbha region in Maharashtra has gained infamy over the years because of an abnormally high number of suicides by farmers. For decades now, the region has been hogging headlines over sorry state of affairs for the farming community.

Rahul Gandhi, further escalating his attack on the Centre, said that farmers’ demand for loan waivers remains ignored, but the Modi government continues to give big loans to corporates and billionaires.

“Modi ji promised to double farmers’ income – today, the reality is that the lives of those who feed the nation are being cut in half. This system is killing the farmers,” Congress MP claimed.

Giving a firm retort, Amit Malviya said that the politics of counting the dead looks repulsive, but it’s important to show Rahul Gandhi and Congress the mirror.

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