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There may be a number of uncertainties relating to land title in India, including, among other things, difficulties
in obtaining title guarantees and fragmented or defective title. Title defects may result in the loss of our title
over land. Title to lands is often fragmented and land may have multiple owners. Land may also have
irregularities of title, such as non-execution or non-registration of conveyance deeds and inadequate stamping,
and may be subject to encumbrances of which we may not be aware. The difficulty of obtaining title guarantees
in India means that title records provide only for presumptive rather than guaranteed title.
Additionally, we face various practical difficulties in verifying the title of a prospective seller or lessor of
property. Indian law, for example, recognizes the ability of persons to effectuate a valid mortgage on an
unregistered basis by the physical delivery of original title documents to a lender. Indian law also recognizes the
concept of a Hindu undivided family, whereby all Hindu family members, including minor children, jointly own
land and must consent to its transfer. Absent the consent of all family members a land transfer may be
challenged by a non-consenting family member. Our title to land may be defective as a result of a failure on our
part, or on the part of a prior transferee, to obtain the consent of all such persons. As each transfer in a chain of
title may be subject to these and other defects, our title and development rights over land may be subject to
various defects of which we are not aware. For these and other reasons, title insurance is not readily available in
India. Specifically, there can be no assurance that persons from whom we have acquired sole development rights
have valid title to the land and that their title is not liable to be challenged by any third party in the future. In the
event of any claim of demand or adverse findings in respect of such land, the same may materially affect our
business, results of operations and financial conditions. Further, in respect of 0.14 acres of land at Jasola, we
have acquired sole development rights from persons who have been allotted land but have not yet to entered into
sale deeds. The failure of those persons to obtain good title to the land could adversely impact our ability to
develop our Ongoing Project at Jasola.
The uncertainty of title to land exposes the acquisition and development process to additional risks which may
impede the transfer of title, expose us to legal disputes and adversely affect the value of our land. Legal
disputes in respect of land title can take several years and considerable expense to resolve if they become the
subject of court proceedings and their outcomes can be uncertain. We may lose our interest in the land if we or
the owners of the land subject to our development agreements are unable to resolve, such disputes with these
claimants. The failure to obtain good title with respect to land may materially prejudice the success of a
development for which that land is a critical part and may require us to write-off expenditures in respect of the
development.
We may not be able to assess or identify all the risks and liabilities associated with the land, such as faulty or
disputed title, unregistered encumbrances or adverse possession rights. These or other title defects may result in
our loss of title or development rights over land, and the cancellation of our development plans in respect of
such land, negatively impacting our business, results of operations and financial condition. Prospective
investors should note that neither our legal counsel nor the Underwriters‟ legal counsel is providing an opinion
in respect of title to our Land Reserves. For details, relating to litigation involving our properties, see
―Outstanding Litigation and Material Developments‖ on page 287.
7. 74.07% of the land forming part of our Land Reserves consists of agricultural land.
Of our total Land Reserves of 816.56 acres, approximately 604.89 acres comprises of agricultural land for which
we have not yet obtained a certificate for change of land use. Of 604.89 acres, we have received letter of intent
for development of approximately 314.81 acres and have applied / are in the process of applying for change of
land use for approximately 290.08 acres of land. We can commence development on such land only upon
receiving approvals from the relevant state authority for the conversion of its usage to commercial or residential
purposes. The procedure for obtaining a certificate for change of land use varies from State to State. If the
approvals from the relevant state authority for the conversion of such land for commercial or residential
purposes are not granted in a timely manner, or at all, we may not be able to carry on any developments on such
land. For more information, see “Our Business” on page 92.
8. Our Company owns less than 1% of our Land Reserves directly.
Out of our total Land Reserves of 816.56 acres, only 3.51 acres have been directly leased to our Company for a
term of 90 years, which amounts to approximately 0.43% of our total Land Reserves. The balance land
comprises land held directly by the Subsidiaries of our Company, land over which our Company has sole
development rights and the land over which our Company holds rights either by the virtue of agreements to sell
or allotment letters allotted by the relevant government authorities.
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