BPTP Land Deal In Trouble

Well popular land deal, BPTP, might be in trouble. According to top officials in the Noida administration as well as the real estate industry, the Delhi-based real estate firm BPTP is finding it extremely difficult to raise funds for buying the land.

BPTP was no able to pay the first installment on time, so company has requested the Noida authority to grant two month extension for paying twelve hundred fifty crore rupees. For this extension, they have to pay penalty. The penalty clause behind this extension is that the realtor will have to pay a fine to avail of this extension.

A senior official of Noida Authority said that BPTP had requested for additional time and Noida authority has extended the time from one month to three months to pay the required amount.

2 Comments

  1. Posted May 12, 2008 at 12:43 am | Permalink

    This was the big deal if BPTP is not able to pay that amount the goodwill be in depth level and may be the land level growth might be slow.It may be some reason due to short of money or something other reason.

  2. Posted May 13, 2008 at 5:11 am | Permalink

    The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
    The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???For more view- realtydigest.blogspot.com

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