Page 61 - Kolte Patil AR 2019-20
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for land and construction expenses of   Standardisation: The Act requires   Penalty: Severe monetary penalty
            one particular project.          a standard model sale agreement to   (up to 10% of the project cost) and
                                             be entered between promoters and   imprisonment has been prescribed
            Regular updates: Home buyers are   homebuyers to safeguard the customers  against the violators for the violation of
            now able to monitor the progress of   against the punitive clauses inserted by  the Act.
            the project on the RERA website as it   them. Through this, the promoters are
            is a compulsion for promoters to make   held accountable for any defaults on   (Source:
            periodic submissions to the regulator   their part.
            regarding the progress of the project.

             SWOT analysis

                                    Growing urbanisation        Implementation of RERA (The Real Estate
                                    and economic                (Regulation and Development) Act, GST
                                    expansion creates           (Goods and Services Tax) and REITs (Real
                                    potential for               Estate Investment Trusts) encouraging
                                    commercial real estate      investor sentiment for real estate especially
              Strengths             market growth               the commercial real estate segment.

                                    Demonetisation            Foreign investors are not
                                    impacted retailers        keen to invest in Indian   Lack of
                                    through cash              real estate sector due to   infrastructure is
                                    shortages due to which    bureaucratic procedures   another deterrent
                                    commercial real estate    for project approvals     for the Indian real
              Weakness              demand has impacted.      and corruption.           estate sector.

                                    The growing young           Through REITs (Real Estate
                                    population of India         Investment Trusts), real
                                    supports strong demand      estate companies are able
                                    for both residential and    to list real estate assets,
                                    commercial properties       boosting investment in
              Opportunities         in India.                   Indian real estate sector.

                                                                                  Demonetisation and
                                     The Indian real            Economic          liquidity crisis has resulted
                                     estate sector is still     slowdown may      in shortage of cash and low
              Threats                highly unorganised         affect demand     transactions in property
                                                                                  market and leasing activity.

             Company overview
            Incorporated in 1991, Kolte-Patil   complexes, commercial complexes   The Company was accredited with ‘A+
            Developers Limited is one of the leading  and IT Parks covering a saleable area   /Stable’ by CRISIL, one of the highest
            real estate companies with a dominant   of ~20 million square feet across   rating accorded by CRISIL to any
            presence in Pune. The Company has   Pune, Mumbai and Bengaluru. KPDL   publicly listed residential real estate
            been creating landmarks for nearly   is a trusted name with an established   player in India.
            three decades, has developing over   reputation for high quality standards,
            50 projects including residential   design uniqueness and transparency.

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