Oberoi Realty’s deny any association with LIC Housing Finance

Information gathered via telephonic interview with Mr.Gourav Gupta , Personnel for Corporate & Media Communications, Oberoi Realty.

Q. Has Oberai Realty not obtained any loan or financial facility/arrangements from LIC Housing Finance?
Ans. No, absolutely not. No form of loans has been obtained from any financial institution. Oberoi Realty is a ‘zero-debt’ company. All loans that we had taken five years back, have all been duly repaid by the last two years. There is no outstanding loan.

Q. If yes, what types of arrangements were entered into? If no, then to what extent has LIC Housing Finance Ltd. financed your customers to acquire flats in your projects?
Ans. We do not have a clear picture as to what extent LIC Housing Finance Ltd. has sponsored our customers. But, from the Company’s side I can assure you that we have no outstanding loan with LIC Housing Finance Ltd.

Q.The land that you have purchased in Goregaon, what was the source of funds for that purchase? Has any financial institution sponsored you to acquire the land?
Ans. I do not have a clear idea about that. Kindly refer to the Red Herring prospectus on the SEBI website, for elaborate details.

Q. Some portion of the three towers that Oberoi Realty has constructed is in forest land, according to reports. How far is this true?
Ans. Yes, there were minor legal issues associated to those constructions in Mulund. However,we have recently received Government approval for those projects. All litigation has now been put to rest.

Q. Why has there been a delay in projects on the Jogeshwari-Vikhroli Link Road?
Ans. Yes, there has been a delay in completing the project. I do agree we have been running behind schedule, but there hasn’t been an huge delay either. We were expected to deliver the project by December, this year, instead of which we are now delivering my the next quarter of the financial year, that is by March-April. We have just fallen behind by 3-4 months, which considering the present scenario of exorbitant project-construction delays, is pretty acceptable & justified.

Q. What is the pattern of deployment of funds from IPO?
Ans. Our current financial status, as it stands at present is as follows:

We are having a total fund of Rs.1500 crores with us.
Of this total fund amount of Rs.1500 crores, Rs.1000 crores has been raised through IPOs.
The remaining Rs.400 crores is reserved in our bank account.
The total amount of Rs.1000 crores generated from IPOs, has been invested into the following heads:
a).Construction activities-Rs. 741 crores

b).Land acquisition ventures-Rs.225 crores

c).General corporate plans- The remaining amount of Rs.34 crores.

We need to confirm the above with finance department about the exact position.
As spoken to Indrajit Sen, Sub-Editor, Accommodation Times.

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