DLF signs Aman Resorts deal

DLF, country’s largest realty firm has signed the deal to sell its international hotel chain, Aman Resorts. In line with its strategy to exit non-core assets and reduce debt, DLF, has announced the sale of Aman Resorts to Adrian Zecha, the luxury hotel chain’s founder and chairman, for $300 million (about Rs 1,600 crore). Both the parties have signed a definitive agreement for a management buyout, and the deal is expected to close by February 2013, However, the deal, does not include Aman New Delhi, a trophy property at Lodhi Road, which is frequented by the who’s who of Delhi.

DLF Golf & Country Club wins again

DLF Golf & Country Club wins “Best Golf Course Award” in India at the recently concluded Asian Golf Monthly Awards - 2012 held at the picturesque Empire Hotel & Country Club, Brunei. This was the Club’s 5th win in 6 years. The award was given away by Pehin Dato Yahya, Brunei’s Minister of Industry and Primary Resources to Mr. Aakash Ohri, Director, Business Development, DLF Home Developers Ltd., others honored at the event was professional golfer Jeev Milkha Singh.

DLF Golf Country Club

DLF Golf and Country Club was launched in 1999 and is situated in the midst of DLF City in Gurgaon, spanning over 142 acre. DLF Golf and Country Club provides DLF residents with the world class golf infrastructure. The Clubhouse is designed by architect, Hafeez Contractor in a true colonial style, it also provides state of the art 18 holes golfing facilities for avid golfers. Apart from golf course, the club also provides DLF residents with Sports Complex and the Club House. Today, the club has become a must go spot for creme de la creme of Delhi-NCR and for MNCs and other business houses in the city.

Too early to tell if CCI changes in DLF buyer-builder pact will become model

Modifying the buyer-builder agreement of DLF-Belaire last week, the Competition Commission of India (CCI) said it could become a model pact for the industry, since DLF is the market leader. However, according to experts, the competition watchdog might be too ambitious here, as the dominance of DLF is yet to be proved at the Competition Appellate Tribunal(Compat). Incidentally, some real estate associations are already in discussion with CCI over a model agreement for the industry. According to CCI Chairman Ashok Chawla, the modified agreement in the DLF case could work as a model framework for commercial agreements between real estate developers and property buyers, and could serve as a benchmark for the sector. “It is a very large wish of CCI. Whether DLF was dominant or not is yet to be decided,” said M M Sharma, partner, competition practice, Vyas Associates. The moot point, according to Sharma, a competition lawyer, is whether DLF is dominant in the “relevant market”. Compat’s next hearing of the DLF case is slated for Wednesday. “Whether a real estate company is dominant or not — DLF was found to be dominant because it was big — most of them follow the same format pattern that flows from big players in the market,” Chawla had told media last week. According to Vinod Dhall, former CCI chairman, the CCI’s modification in the buyer-builder agreement is part of the appeal process to Compat for a particular case. “It is a case of abuse of dominance, and a part of it is the one-sided clauses. However, it will be hard to understand who started these one-sided clauses.” However, based on the outcome of the case, if DLF makes these changes in its agreement, many developers may feel compelled to fall in line, said Dhall. The former CCI chairman added that although it was more of a consumer matter, CCI looked into one-sided agreements due to a regulatory vacuum and consumer courts being unable to have made an impact. On the other hand, the Confederation of Real Estate Developers of India (Credai) told Business Standard that it had a meeting with CCI recently to discuss standard clauses for the sector. “We have asked CCI to give us standard clauses, a list of do’s and don’ts for the entire industry,” said Lalit Kumar Jain, chairman, Credai. “We will welcome a well-dialogued document, a result of detailed discussions on what’s right and judicious,” he added. Jain said Credai will study the modified clauses by the CCI in DLF’s case and come out with its own clauses, discuss with the CCI and circulate it among builders. In case of delay in delivery, the CCI said DLF should pay an amount to its buyers as penalty, similar to the penalty the builder charges from buyers for delayed payments, the CCI said. To this, Jain said that penalty is a “hugely disputable clause”. According to R R Singh, director-general of the National Real Estate Development Council (Naredco), the draft submitted by CCI is for a particular case and is up to the Compat to accept or reject it. However, he added that after some modifications and corrections, the draft could become a model agreement. “Whoever makes the model agreement for the industry, be it the regulatory authority or the state government, the draft will work as a base for model agreement,” he said. In March 2012, Compat had asked the CCI to pass an order specifying the extent and manner in which terms and conditions of the apartment buyers’ agreement need to be modified.