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elation to debt facilities that have a sanctioned amount of approximately Rs. 21,088.70 million. In the event that
there is any default in any of these obligations, the personal guarantees given by our Promoters may be invoked.
Further, certain properties held by our Promoters have been secured in connection with loans availed by our
Company. Additionally, Mr. Raj Singh Gehlot, Mr. Mohan Singh and Mr. Dayanand Singh have provided
personal guarantees in respect of certain loans availed by our Company. Also, Mrs. Shyamo Devi and Mrs. Usha
Devi provide raw material to the Company.For details see ―Related Party Transactions‖ and “Financial
Indebtedness‖ on pages 150 and 281, respectively.
Our registered office and corporate office have been leased from Mrs. Sheela Gehlot, pursuant to lease deeds
both dated April 1, 2007. Accordingly, Mrs. Sheela Gehlot is interested to the extent of lease rentals received by
her from our Company for the lease of such space. Mrs. Sheela Gehlot purchased property located at plot no H-
35 in Green Park Extension from our subsidiary, Moonvalley Realtors Private Limited in March 2009.
Subsequently, our Company has, in relation to this land and other plots in South Delhi and Jasola, acquired sole
development rights from Mrs. Sheela Gehlot covering approximately 2.43 acres of land in respect of our
Ongoing Projects, namely the multi-unit apartments in Jasola and the multi-unit apartments in South Delhi.
Further, our Company (through its Subsidiaries) has acquired sole development rights from persons belonging to
our Promoter Group, i.e. Mrs. Nutan Gehlot in connection with our Ongoing Project at Panipat, and Mrs. Sunita
Chaudhary in connection with our Planned Project at South Delhi. For details see “Our Business” on page 92..
There can be no assurance that these agreements were negotiated on an arm‟s-length basis or that these
agreements are in the best interests of our Company. In the event Mrs. Sheela Gehlot (or members of our
Promoter Group) decides to terminate such agreements due to breach, it may materially and adversely affect our
business, results of operations and financial condition.
Certain of our Promoters / Directors also have directorships in our Group Entities whose memoranda allow them
to engage in the business of construction and development of real estate. Additionally, all the individual
promoters are related to each other and some of our Directors are also related to each other. For details, see
“Our Management” and “Our Promoters and Group Entities” on page 132 and 142, respectively.
36. Compliance with, and changes in, environmental, health and safety laws and regulations may
adversely affect the development of our projects.
We are subject to environmental and health and safety regulations in the ordinary course of our business,
including governmental inspections, licenses and approvals of our project plans and projects during
construction. We are required to conduct an environmental assessment for most of our projects before receiving
regulatory approval. If environmental problems are discovered during or after the development of a project or if
government authorities adopt more stringent regulations, we will have to be at all times in full compliance with
applicable regulatory requirements. We may need to incur substantial expense relating to clean up and other
remedial measures and the value of a property could be adversely affected. In addition we are subject to an array
of labour laws that require us to maintain health and safety standards for our employees. Due to the possibility
of unanticipated regulatory developments, the amount and timing of future expenditure to comply with these
regulatory requirements may vary substantially from those currently in effect. We cannot assure you that our
costs of complying with current and future environmental, health and safety laws and regulations or any
potential liabilities arising from any failure to comply therewith will not adversely affect our business, financial
condition and results of operations.
37. We do not have certain records pertaining to historical legal and secretarial information.
We have in the past misplaced share transfer forms relating to sale and purchase of our Equity Shares by our
Promoters and sale and purchase of equity shares by our Company in our subsidiaries. Accordingly, an FIR was
lodged by us with the Station House Office, Hauz Khas, New Delhi. As a result, information relating to the
same in this Draft Red Herring Prospectus has been obtained from the books of records of the Company, the
relevant subsidiaries and undertakings of the Promoters and Promoter Group.
38. Certain of the entities forming part of our Group Entities have incurred losses in the past.
Vijeta Properties Private Limited, a Group Entity incurred a loss of Rs. 0.03 million in fiscal 2008. We cannot
assure you that Vijeta Properties Private Limited or our other Group Entities would not incur any losses in the
future.
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