Raheja Developers

Last updated

Raheja Developers Limited
FormerlyRaheja Developers Private Limited
Company type Public currently under insolvency proceedings.
Industry Real estate
Founded1990;34 years ago (1990) in Delhi, India
FounderNavin Raheja
Headquarters Saket, ,
India
Area served
National Capital Region
Website www.raheja.com

Raheja Developers Limited, (RDL), formerly Raheja Developers Private Limited, is an Indian real estate development company with its headquarters in Delhi, India.

Contents

RDL was incorporated in 1990 by Navin Raheja, who currently serves as chairman.

Currently, the company is under insolvency proceedings as the Principal Bench of the National Company Law Tribunal (NCLT) has stated the initiation of insolvency proceedings against the realty firm over default on non-delivery of its Gurugram-based Shilas project. This order came on 19 November 2024. NCLT had also appointed an Interim Resolution Professional (IRP), uspending the board of the realty firm and putting it under the protection of moratorium against lenders, as per the provisions of the Insolvency & Bankruptcy Code.

History

Raheja Developers Limited was incorporated by Navin Raheja in 1990. The group has worked with contractors such as Aedas, [1] Shapoorji-Pallonji and two of its joint-development projects were in collaboration with Tata Group. [2] It had also collaborated with Dubai-based Arabtec Construction. [3]

In 2008, Raheja Developers planned to build a Special Enterprise Zone (SEZ) in Gurgaon at an estimated cost of $660M US. The development was to be on a 255-acre (103 ha) site, but the project did not advance. The Government of India announced denotification of the SEZ project on 29 January 2014. [4]

In 2020, Raheja Revanta, the tallest residential towers by Raheja Developers, was awarded the Luxury Project of the Year by CNN News 18 Real Estate Business Excellence Awards. The project is being built by Arabtec, the makers of Burj Khalifa, Dubai, but now a dispute has developed between Raheja Developers and Arabtec and the matter of contract-termination reached the Delhi High Court. IndianKanoon: Raheja Developers Ltd vs Arabtec Construction (India) on 14 May, 2020

Raheja Vanya, located in Gurugram, bagged the Green Project of the Year Award 2020.

Controversies

In 2010, a raid by Indian Income Tax authorities led to a recovery of tax evasion amounting to 80 crore (US$9.6 million). [5] In 2014 investigative portal Cobrapost conducted a sting operation against several real estate developers. [6] [7] It alleged that Raheja was one among the several developers willing to accept black money. [8] Based on this, the Central Board of Direct Taxes ordered a probe into Raheja and 34 other developers. [9] [10]

In 2014, the Prime Minister of India's Office ordered a probe relating to alleged irregularities in a Gurgaon housing project named Raheja Atharva. [11] Subsequently, the State Level Expert Appraisal Committee investigated, [12] and 0.8 acres of the Atharva project was sealed as it was illegally constructed without any Environmental Clearances. [13]

In October 2019, one of Raheja's projects were imposed with a heavy fine, for flouting pollution norms. [14]

In July 2019, Raheja Developers faced insolvency proceedings under the Section 7 of Insolvency and Bankruptcy Code, 2016, on a complaint filed by home buyers on alleged delay in delivery of flats. On enquiry, the NCLAT bench observed that the home buyers had filed the application with intent of refund of money. [15]   [16]

The NCLAT reserved its order in the case in September 2019, further removing the Interim Resolution Professional (IRP) in January 2020, thus allowing the board of directors to take back control of the company. [17] [18]

Related Research Articles

<span class="mw-page-title-main">Arabtec Holding PJSC</span> United Arab Emirates construction group

Arabtec Holding PJSC, Dubai's most heavily traded and largest construction group in GCC together with its subsidiaries, provided construction services for residential, commercial, oil and gas, infrastructure, power, facilities management, and property development sectors in the United Arab Emirates and internationally. It operated through Construction; Mechanical, Electrical and Plumbing; Oil & Gas, Infrastructure and Power; and other segments. The company was involved in the construction of high-rise towers, buildings, and residential villas, as well as drainage, electrical, mechanical, and plumbing contracting, and civil and infrastructure construction works. It also engaged in real estate investment, development, leasing, and management activities. In addition, the company manufactured precast panels and steel structures, as well as ready-mixed concrete

<span class="mw-page-title-main">Natarajan Chandrasekaran</span> Indian businessman (born 1963)

Natarajan Chandrasekaran is an Indian businessman, and the chairman of Tata Sons and Tata Group. He was chief operating officer (COO) and executive director of Tata Consultancy Services (TCS), where in 2009, he became chief executive officer (CEO). He was also the chairman of Tata Motors and Tata Global Beverages (TGB). He became the first non-Parsi and professional executive to head the Tata Group. He has assumed the chair of G20 India and will lead the business agenda during India's G20 presidency.

Lanco Infratech was a large Indian conglomerate that became insolvent in 2017. It was involved in construction, power, real estate, and several other segments. One of the first Independent Power Producers (IPP) in India, in 2011 it became the largest private power provider in India.

Essar Steel was a common name of the steel manufacturing companies of the Essar Group of Companies. Its main subsidiary was Essar Steel India Limited, a fully integrated flat carbon steel manufacturer based in Mumbai, which owned and operated a integrated steel plant in Hazira, Surat district of Gujarat state. In addition, it had also a beneficiation plant at Bailadilla, Chhattisgarh, and pellet plants at Visakhapatnam, Andhra Pradesh, and Paradeep, Odisha.

<span class="mw-page-title-main">Cyrus Mistry</span> Indian-born Irish billionaire businessman (1968–2022)

Cyrus Pallonji Mistry was an Indian-born Irish billionaire businessman. He was the chairman of the Tata Group, an Indian business conglomerate, from 2012 to 2016. He was the sixth chairman of the group, and only the second not to bear the surname Tata. In mid-2012, he was chosen by a selection panel to head the Tata Group and took charge in December that year. In October 2016, the board of Tata Group's holding company, Tata Sons, voted to remove Mistry from the post of chairman. Former chairman Ratan Tata then returned as interim chairman, and Natarajan Chandrasekaran was named as the new chairman a few months later. However, in December 2019, the National Company Law Appellate Tribunal (NCLAT) declared the appointment of Chandrasekaran as executive chairman illegal, and restored Mistry. However, the Supreme Court stayed NCLAT's order on 10 January 2020. Mistry had filed a cross-appeal in the court, seeking explanations for anomalies in the NCLAT. However, the Supreme Court upheld his dismissal.

<span class="mw-page-title-main">Raheja Mindspace</span> Brand of commercial and industrial parks

Mindspace is a brand of commercial and industrial parks established by K Raheja Corp. Located in Mumbai, Hyderabad, Chennai and Pune, the industrial hubs offer offices, residential towers, entertainment facilities and other retail businesses. By 2016, the parks developed by Mindspace housed more than 50 businesses in India, including Accenture, L&T Infotech Ltd, Cognizant Technology and Capegemini Group.

DAMAC Properties is an Emirati property development company, based in Dubai, in the United Arab Emirates. Founded by Hussain Sajwani, it was listed on the Dubai Financial Market in early 2015. The company was delisted in 2022 after it was taken private again; Sajwani, who retained 72% of all shares, purchased the remaining shares for 2.19 billion AED. The company operates internationally.

<span class="mw-page-title-main">Sobha (company)</span> Indian real estate company

Sobha Limited is a multinational real estate developer with its headquarters in Dubai, UAE and a corporate office in Bangalore, India

<i>Cobrapost</i> Non-profit Indian news website

Cobrapost is a non-profit Indian news website that was founded in 2005 by Aniruddha Bahal – the co-founder of Tehelka. It is particularly known for its undercover investigative journalism.

Emaar India Limited is a real estate developer principally engaged in promotion, construction, development and sale of integrated townships, residential and commercial multi storied buildings, houses, flats, shopping malls, hotels, and other developments. The company develops residential and commercial projects in different parts of India, including Gurugram, Delhi/NCR, Mohali, Lucknow, Indore and other Indian cities.

The Insolvency and Bankruptcy Code, 2016 (IBC) is an Indian law which creates a consolidated framework that governs insolvency and bankruptcy proceedings for companies, partnership firms, and individuals.

Zexus Air Services, doing business as Zooom Air, is an Indian low-cost regional airline headquartered in Gurugram, Haryana, India. It operates from its base at Indira Gandhi International Airport in Delhi, with a fleet of 5 aircraft.

Chandru Lachmandas Raheja is an Indian billionaire businessman, and the chairman of K Raheja Corp which is involved in developing IT parks, hotels, malls, and running department store chains including Shoppers Stop.

<span class="mw-page-title-main">Shravan Gupta</span> Businessperson (b. 1973)

Shravan Gupta is an Indian businessman, serving as the chairman of MGF Group. He was previously a director at Emaar MGF Land.

JSW Bhushan Power & Steel Limited formerly known as Bhushan Power & Steel Limited is a steel company that is engaged in the manufacturing and marketing of steel products. It was established in 1970. In July 2019, BPSL was allegedly involved in fraud worth ₹3805.15 crore rupees, as detected by Punjab National Bank. It is one of India's most indebted companies and appears among the 12 companies referred by the Reserve Bank of India (RBI) to a bankruptcy court for the purpose of debt resolution.

K Raheja Corp is a property developer in India with interests in commercial and residential projects, malls and hospitality across multiple cities in the country. It owns the brands Mindspace, Commerzone, Crossword Bookstores and Shoppers Stop, and is the second largest commercial developer in India. Under the Mindspace banner, K Raheja Corp also operates Mindspace Office Parks, which is a real estate investment trust (REIT).

<span class="mw-page-title-main">Lodha Group</span> Indian real estate company

Lodha or Macrotech Developers is an Indian multinational real estate company and construction company headquartered in Mumbai, India. It was founded in 1980 by Mangal Prabhat Lodha. It has developed residential and commercial properties in Mumbai, Thane, Hyderabad, Pune and London.

<span class="mw-page-title-main">RMZ Corp</span> Indian real estate company

RMZ is a privately-owned global alternative asset owner, headquartered in Bengaluru, Karnataka ,India. The company has developed projects in multiple cities in India, including Bengaluru, Chennai, Hyderabad, Delhi NCR, Pune, and Mumbai The company has a portfolio of real assets spanning a total of 70 million square feet.

Sobha Group LLC is a GCC based real estate developer headquartered in Dubai. The company was established in 1976 as an interior decoration firm in Oman by Mr P.N.C. Menon. The company is functional in the UAE, Oman, Bahrain, and Brunei. Sobha Group LLC was the subject of a case study at Harvard Business School. It recorded a sales target of US$1 billion in 2021.

K. Raheja Realty is an Indian real estate company, headquartered in Mumbai, Maharashtra. The company was founded in 1956 and is led by Sandeep Raheja, who serves as both the chairman and managing director. K. Raheja has diversified interests in real estate including both commercial and residential property development, as well as malls and hospitality. The company owns a subsidiary called Infiniti Mall, which operates a chain of shopping malls in India. The first Infiniti Mall opened in 2004, followed by another one in Mumbai in 2011.

References

  1. "Tata Housing to develop 200 lakh sq. ft". The Hindu. Retrieved 10 June 2017.
  2. "Rahejas to ink JVs with Tata Housing, 2 Dubai firms". Financial Express. Retrieved 1 November 2011.
  3. "Raheja forms JV with Dubai's construction firm Arabtec". Livemint. Retrieved 5 November 2011.
  4. "Raheja Denotification" (PDF). SEZindia.nic.in. Govt of India. Retrieved 3 January 2016.
  5. Saini, Manveer. "Tax evasion worth Rs 80cr unearthed". Times of India. Retrieved 5 January 2015.
  6. "Black money rampant in realty deals, reveals sting op - Times of India". The Times of India. Retrieved 26 October 2017.
  7. Reporter, BS (28 November 2014). "Cobrapost stings realtors". Business Standard India. Retrieved 26 October 2017.
  8. "Operation Black Ninja". Cobrapost. Archived from the original on 11 December 2014. Retrieved 11 December 2014.
  9. "Black Money: CBDT orders I-T Probe against select real estate firms". www.livemint.com. Mint. Retrieved 11 December 2014.
  10. "Cobrapost sting: CBDT orders probe against real estate firms over black money allegations". Financial Express. Retrieved 11 December 2014.
  11. Hussain, Shabana. "PMO asks Haryana to probe complaints against Raheja Developers". Forbes India Magazine. Retrieved 19 December 2014.
  12. "Gazette of India" (PDF). Ministry of Environment, Forest and Climate Change. Retrieved 3 January 2016.
  13. "SEAC Seals Site of Raheja Builder". Amar Ujala. Amar Ujala Newspaper. Retrieved 3 January 2016.
  14. Arora, Shilpy (7 October 2019). "Gurugram: Five builders flout pollution norms, fined". The Times of India. Retrieved 9 October 2019.
  15. Babar, Kailash; Vyas, Maulik (27 July 2019). "Raheja Developers to face insolvency proceedings". The Economic Times. Retrieved 25 September 2019.
  16. "NCLT starts insolvency proceedings against Raheja Builders". Livemint. 9 September 2019. Retrieved 25 September 2019.
  17. www.ETRealty.com. "NCLAT reserves orders in Raheja Developer's insolvency case - ET RealEstate". ETRealty.com. Retrieved 21 February 2020.
  18. "Delayed delivery of flats: Raheja group regains control of firm as IRP removed". epaper.timesgroup.com. Retrieved 21 February 2020.