Supreme Court allows DLF units to sell shares, rejects Sebi plea for restraint order

NEW DELHI: The Supreme Court today allowed three DLF subsidiaries to sell shares worth Rs 12,000 crore to reduce debt, declining the regulator's plea to prevent the real estate group's move. The DLF stock was up 3.9 per cent at 11:24 am on the Bombay Stock Exchange.

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 The Securities and Exchange Board of India (Sebi) had previously passed an order restraining DLF and its key directors including promoter KP Singh from directly or indirectly accessing the market or dealing with any securities over what it said was the violation of disclosure norms during the company's initial public offer in 2007. 

The securities appellate tribunal had set aside this order on an appeal by DLF. Sebi has challenged this in the top court. 

On Wednesday, the market regulator, through senior advocate CU Singh, sought a temporary restraint order against the DLF units selling their shares to offshore entities, but a bench of justices Jasti Chelameswar and Abhay Manohar Sapre refused to consider this. 

Instead, the bench directed the Sebi appeal to be listed for hearing. 

Source - ET

Trial court orders builders must pay customers for damages, delays

NEW DELHI: In a significant order, a trial court has said that buyers can claim damages from builders if the latter fails to hand over the property on time.

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Buyers can also seek compensation or sue the builders if what they get is different from what they were promised—if sub-standard material was used as against "high-quality" material.

 "A builder who delays the handing over of the building to the buyer after completing the same within time or fails to carry out the construction according to the agreed specifications, entitles the buyer/ purchaser/ occupants to claim damages for any financial loss or physical inconvenience suffered by them on account of the same for which the builder can be made liable," additional district judge Kamini Lau said.

This order is likely to give fillip to buyers as there have been increasing incidences of delayed possession. 

The court made these observations while deciding a 35-year-old civil suit filed by Dalmiya Cement (plaintiff) against Hansalya properties and three of its partners (all defendants).

Dalmiya Cement had claimed damages of over Rs 9 lakh on several grounds, such as delay of four years in possession of property. The plaintiff also sought compensation on account of the builder's failure to equip the building with adequate electricity supply, including a stand-by generator, and their inability to provide at least four lifts.

Dalmiya Cement alleged that the defendants were supposed to start the construction of Hansalya building at Barakhamba road in 1971 and were to give possession of the 11th and 12th floor to it in 1973. However, the plaintiff got the property only in 1977, the suit said. The judge, however, said that the plaintiff failed to provide any evidence to substantiate its allegations.

"The plaintiff has...failed to bring on record any cogent evidence to establish the claims. They have also failed to bring on record any material to prove that the delay was unjustified and unavoidable. This was...necessary because according to the defendant, the delay, if any, was due to non-availability of the required quantity of cement...," the judge said.

However, the court directed Hansalya properties to pay the plaintiff the transfer fees of Rs 12,000, the amount the former had charged when the latter bought its property, saying there was no law under which transfer fees can be charged. 

Source - ET