As buyers, investors shy of dealing with the group after reports of ED's notice to attach its properties in wake of the 2G scam, experts fear Dynamix Realty may not remain that dynamic
As buyers, investors shy of dealing with the group after reports of ED's notice to attach its properties in wake of the 2G scam, experts fear Dynamix Realty may not remain that dynamic
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It turns out not all publicity is good for business, especially when a scam as big as the 2G spectrum allocation is involved. 
ED's notices have affected the Shahid Balwa-promoted
companies adversely
The news that Enforcement Directorate (ED) has sent notices to attach two dozen properties of the DB Group, is going to have a major impact on the real estate wing of the Shahid Balwa-promoted companies, say market experts.
According to news reports, ED has sent out the order to attach properties of five of the group's companies, after its promoters have been accused of getting a 2G licence in lieu of a Rs-200 crore bribe.
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Two of the companies, Dynamix Realty and DB Realty, are owned by the group. The other three are construction companies directly or indirectly related to DB; they are Eversmile, Nihar and Conwood.
According to real estate sources, ED's move would affect the companies adversely. A realtor from western suburbs said that people are now hesitant in investing in DB's projects there.
"I had a client who had promised to inspect one of the projects of DB Realty on Saturday. But he hasn't called me, nor is he answering my calls.
The impact of the 2G scam, which earlier wasn't so palpable, is evident now. And it is working to the detriment of the company," he said.
Another realtor said that he is getting calls from brokers to be cautious in selling any flats by the group.
"Many people are scared of their reputation being sullied, in case any of their deals fall through after the sale of the flat due to legal problems. Hence we are being cautious before selling properties," said another realtor.
For their part, realtors claim they will wait until the court's judgment on the scam is out.
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"The status quo on our side would remain unchanged till the time the verdict on the involvement of the company's directors in the 2G scam isn't out," the realtor added.
Expertspeak
According to a real estate expert, if the group's properties are attached, it will send out the wrong signals to buyers. "It will discourage buyers from purchasing the group's properties. Investors, especially, don't like investing in property that is already in troubled waters," said the expert.
The Other Side
However, according to DB Realty officials, their 29 projects in the city are all on schedule, the 2G Scam has got no bearing on their real estate division, and all their projects will continue to be executed as per schedule.
Their official stand on the ED notices was, "We would like to put it on record that we have received no such order (to attach properties) from the Enforcement Directorate till date.
Should such attachment notice be issued, it is our view that it would be illegal and we would defend the same, and take all necessary steps to get it vacated at the earliest.
In any case, this will not impact our business operations," said an official spokesperson from the company.
DB's projects
DB Realty has 29 residential and commercial projects across the city. Of these, 13 are under construction, 12 are in various stages of approval, and four are in the pipeline.
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