Another blow for Unitech, DB Realty
The Supreme Court's verdict on the 2G spectrum case could not have come at a worse time for real estate players such as Unitech and DB Realty. HT reports.india Updated: Feb 02, 2012 22:25 IST
The Supreme Court's verdict on the 2G spectrum case could not have come at a worse time for real estate players such as Unitech and DB Realty. Promoters of the two firms had recently been released on bail in the 2G case and were beginning to pick up the reins of their real estate firms when the ruling came as a big jolt.
As the news broke out, scrips of the companies fell sharply. Both Unitech and DB Realty have denied any impact of telecom business onto their real estate ventures.
"The business of real estate is more about public confidence and when promoters of a firm are regularly associated with negative news then it does shake up this confidence," said a senior real estate consultant. He said weak market sentiment affects the retail investors that account for around 30% investments in a particular realty project. "Unitech and DB Realty will now have to expedite delivery of their existing projects to gain market confidence," he added.