Emaar MGF's Central Plaza at Mohali to get operational soon

Emaar MGF Land Ltd, a leading real estate and infrastructure developer today said that their upcoming commercial space 'Central Plaza' at Mohali will soon get operational. The company said it had completed 90 per cent of the construction work at the Central Plaza which is part of Emaar MGF's prestigious integrated township 'Mohali Hills'.

Emaar MGF's retail offering, Central Plaza is a half kilometre long building, based on Spanish style. The concept is based on the lines of strip malls found in most of the cities of the US and Canada. In addition to unique architectural features the structure has been made earthquake resistant with 100 per cent power back provision for air conditioning. Central Plaza will have 45 elevators and a parking space to accommodate approximately 1200 cars.

Part of the company's integrated township 'Mohali Hills', Central Plaza will not only have Mohali as its core catchment area but it will also serve as a one-stop shopping destination for the brand-conscious Chandigarh buyers. Located in Sector 105, Mohali, the retail cum office complex will have footfall from the surrounding residential sectors as well as from outside due to close proximity to Chandigarh international airport, said a company official.

A key feature of Central Plaza will be a large parking area and a dedicated drop-off zone for every section that would make shopping and working here a different experience. This is in sharp contrast to the chaotic parking and clogged entrances of malls in Chandigarh, he added.

‘Govt-Emaar MGF row may hit sentiment’

New Delhi:  Credit rating agency moody’s has said that Indian government allegation against real estate company emaar MGF that it violated foreign exchange rules by using $1.5 billion of foreign funds to buy farm land is the latest action in a “string of investor-un-friendly moves” that have negatively affected foreign companies.

Recently, the Enforcement Directorate (ED) had alleged that Emaar MGF Land Ltd, a joint venture between Dubai’s Emaar properties PJSC and India’s MGF Development, violated foreign exchange rules by using Rs8,600 crore ($1.4billion) of foreign funds to buy agricultural land in the country.

Under the foreign direct investment rules, according to ED, a company is not allowed to use foreign funds to buy agricultural land. But Emaar MGF in its draft prospectus filed with Sebi in 2010 had received the necessary clarifications from India’s ministry of commerce and industry regarding the acquisition of agricultural land.

A senior real estate consultant said that in 2010 Department of industrial policy and promotion in a clarification had said that a real estate company with FDI up to 100% engaged in development of township, housing, infrastructure and construction development projects can purchase land, including agricultural land to carry out “permissible activities for a specific project.” He said that now only Emaar MGF but numbers of other real estate companies are also engaged in similar activities.

Moody’s said that the latest development in India is a reminder of the risks and uncertainties of investing in emerging markets, even those with positive fundamentals, attractive growth prospects and a rising middle class.

The report said the ED’s allegations create uncertainty around a $1.4 billion investment India. Emaar’s Exposure includes an investment book value of $650 million and an outstanding shareholder loan of $750 million to Emaar MGF.

Experts said that in order to make foreign inventors more comfortable investing in the country, the government must spell out its policy clearly and ensure stability. They said that India remains an attractive destination as it gives one of the highest returns in world, but there must be clarity and consistency in policies.

Clean Up Governance to Attract More FDI

It is not just the caps that need Liberalization
 

The government’s modest attempt to open up to more foreign direct Investment (FDI) might not bring In a flood of dollars Immediately, but it is a step In the right direct ion. The most significant measure Is to hike the ceiling for FDI in telecom from 74% to 100%, though Investors who want to go up to that level will still need clearance from the government. This could see the exit of several Indian stakeholders in telecom as valuations go up. once policy confusion is over The limits to FIJI in civil aviation and supermarkets remain unchanged and there Is no point allowing more overseas investment In insurance and pension funds without legislative action. In defence production. FDI is restricted to 260u but, In theory, overseas investors that bring in state of the art technology can go up to 100°,. It has been left to the discretion of the defence ministry to decide exactly what qualifies as state of the art, something that leaves ample scope for graft and a future scandal in defence production units.

Today, prospective overseas inves. tors In india are spooked by the wide holes In policy its implementation and the scope of graft in the system. There is no point allowing FDI In comrn mercial real estate without putting in place a transparent policy to convert agricultural land to commerc1a1/res1dentlal use. These powers of conversion belong to state governments, where petty bureaucrats, brokers and poli ticians demand huge bribes to get the conversion done.

Countries like the US and Britain. which now have powerful laws that bar their companies from bribery anywhere in the world, will soon flnd that despite Its obv ious demographic dividends, India is indeed a complex place to Invest In. WalMart is already under the scanner in the US for alleged bribery In Mexico: the probe has widened to include its Indian and Chinese operations. Just setting FDI limits higher is not enough: to get fUnds flowing, we need better and cleaner governance at all 1ev. els. That takes political resolve at the highest level, bec ause corruption In India Is systemic, rather than opport unistic. tied to how politics is funded.