Advanced Processing Facility (APF): ‘APF is the pre-approval of multi-unit projects other than those developed by Development Authorities, Resale or Self Construction properties. The objective of this facility is to manage risk of funding under-construction properties and to provide the option of approving the entire project of select/ approved builders in one go. The technical and legal evaluation of the individual dwelling unit is done in bulk, rather than as & when it comes to the banks for financing.
For all the fresh Individual Home Loans (IHL) cases, which are in the under- construction phase, it needs to be processed through APF window. Therefore to process an IHL application of units in these projects, the project as a whole needs to be approved as APF. To approve a project as APF, there should be a prescribed process and the objective of this document is to finalize the same.’
Type of transactions covered:
1. Direct allotment from the Builder including Apartments, Villas and Plots. 2. Balance Transfer and Resale cases in these projects.
a. Fully completed projects. b. Self-Construction and resale of completed properties. c. Direct allotment from Development Authority.
For these exclusion cases individual legal and technical checks need to be done as specified in the Credit Policy.
APF process and its life cycle will include the following stages:
1. Builder classification into A+, A, B and C Categories
2. Project approval process for Cat A+, A and B Builders
3. Project approval process for Cat C/ Other Builders
4. ADF, Flexi & CLP ‘ Approval Matrix
5. Valuation rules
6. Legal reports & Tri-Partite agreements
7. APF Code Generation & Roll Out
8. Project Approval Letter
9. Safekeeping of Master Files
10. Requisites for part disbursements of individual retail loans
11. Quarterly Review
12. Non-APF Projects

1. Builder classification into A+, A, B and C Categories
Each builder shall be categorized as per builder scoring sheet attached. Builders will be categorized on below parameters on the basis of scoring sheet:
1. No. of years of experience of the builder / group.
2. No. of Projects completed by the builder / group.
3. Built up area sold by builder / group till date
4. Work in progress in sq. ft. for all ongoing projects of the builder / group.
5. Work in progress in value for all ongoing projects of the builder / group.
6. History of Projects Delivery/ Timeliness of completed projects of the builder / group.
7. Proposed project in the approved list of other banks/FI/NBFC.
8. Stage of construction for the proposed Project (as per technical report)
9. Details of Proposed project (Location, marketability, infrastructure availability)
10. Quality of Project (to be ascertained as per market information & technical report)

2. Projects approval process for Cat A+, A and B Builders
All Builders classified as Cat A+, A and B will be considered as deemed approved. Given the vintage, size & reputation of these builders & the fact that leading Banks, HFCs are already funding properties in these projects, a detailed legal and technical report by PNB HFL is waived. Legal and Technical reports will however be obtained from the vendors who have evaluated these projects for other leading Banks/ HFC; If the vendors are not empanelled with us, we will take the concerned vendors on our panel. In case, the project is not evaluated by any of the vendors we have to initiate the fresh reports.
Legal and Technical Managers in respective Zones will review these reports and give their clearances.
Approval Matrix ‘ Zonal Business Heads together with Zonal Credit Manager will be authorized to approve projects developed by Cat A+, A and B Builders.
3. Projects approval process for Cat C / Other Builders
For Cat C and other Builders, Project Approval Process will require the detailed reports to be obtained from empanelled vendors as follows:
Reports to be obtained: ‘ Legal report: Technical Manager will initiate the legal report with empanelled lawyer. The lawyer needs to submit a search cum legal opinion on the title of the project land. It should also state the list of documents to be collected one time from the builder and also the list of documents to be collected with each individual case. If builder has taken project finance by mortgaging project land, NOC from the lender (One time or specific unit) will be required.
‘ Technical Report: Technical Manager will initiate technical report through empanelled valuer. A comprehensive report along with photographs will be submitted by the valuer.
APF Policy and Process Note
Any one of the following would be taken from the developer in this category: ‘ A self-declaration from the builder stating that the said project is not mortgaged to any bank or financial institution and that the developer has not availed of any loan facilities against said project. ‘ A certification from the builder’s Chartered Accountants stating that there is no lien marked against said project.
Approval Matrix: Builder & project approval note will be recommended by ZBH & ZCM; and approved at NCM & Technical Head jointly. Escalations for any disagreements will be approved by BH and CRO. NCM and Technical Head can upgrade & degrade a builder’s rating on the basis of rationale and can also waive of detailed documents required for Cat C builder.
Various formats used will be as follows:
a) APF Recommendation Note (as per standard format in Annexure 6)
b) Documents to be collected (as per standard format in Annexure 3)
c) Guidelines for standard legal report (as per standard format in Annexure 4)
d) Technical Report format (as per standard format in Annexure 5)

4. ADF, Flexi & CLP ‘ Approval Matrix
‘ Cat C developers will be eligible only for CLP and it will be approved at CSO.
‘ All subvention schemes and ADF will be approved at CSO.
‘ All Flexi and CLP schemes can be approved jointly through Zonal Business Head and Zonal Credit Head, except Cat C developers.
‘ In a merit case falling in the category of ‘NO’ as mentioned above, Zonal Business Head and Zonal Credit head can seek the approval from NCH and Technical Head.

5. Valuation rules
The Technical managers at the time of APF approval, or during the quarterly monitoring will publish the ruling Basic Sale Price (BSP) in APF MIS. Credit team will calculate the funding limit/ LTV based on this published price only. Exceptions to this will be approved by Head Technical.

6. Legal reports & Tri-partite agreements
All title searches cum opinion reports from panel lawyer will be in the prescribed formats as per our guidelines. In every such APF projects, PNBHFL prescribed Tri-partite agreements will need to be executed (between Builder, Borrower & PNBHFL). If the builder has its own formats, then each such TPA format needs to be validated by Hub Legal Managers prior to placing for APF approval. Critical clauses if being amended need to be highlighted in the Approval Memo. The clauses viz, cancellation, surrender, retention money, period of notice, refund rules etc. needs to be looked at before sign-off.

7. APF Code Generation and Roll Out:
Once the Builder and project is approved, Technical Manager of the respective zone/ market will generate APF code and conveys the same to the Credit/Sales Team.
Technical Manager will roll out the Project Approval through an e-mail to the respective Zone and CSO along with the project details.

8. Project Approval Letter:
After generating the APF code, Technical Manager will issue a standard project approval letter (Annexure 7) to the builder under ZCH’s signature. A copy of letter is also to be maintained in the master file. The letter must contain APF number allotted to the project.

9. Requisites for retail loan part Disbursements:
For ruling price update, Technical Manger will release an APF MIS which will capture the ongoing Basic Sale Price (BSP). For loan disbursements this price will be considered for calculation purposes.
‘ For fresh allotment cases: Valuation of the property will be taken as per the ongoing BSP in APF MIS or Allotment price; whichever is less. In case of conflict/ gap, Head Technical will approve ruling price to be considered in the specific case. This will mitigate the inflated pricing, if any, in the allotment.
‘ For Builder Transfer Cases: Valuation of the property will be taken as per the ongoing BSP in APF MIS.
‘ For Balance Transfer Cases: Valuation of the property will be taken as per the ongoing BSP in APF MIS.
Other points to be followed for disbursement: Once the individual cases come for disbursement, no individual legal & technical are required to be done. However, the following are required to be checked: A. The negative remark as updated in Master MIS in regard to the project needs to be checked. The cases falling within the ambit of negative remarks should not be done. B. For fresh/builder endorsement cases other than multistoried apartments (i.e. villa, plot & independent floor) individual technical report would be required in each case to monitor the progress of the specific unit. C. The individual title documents as mentioned in the legal report to be collected with each individual case. D. For all the individual cases Mortgage CIBIL is required. E. The DD / PO needs to be prepared in the same name as is maintained at the time of project approval. In case the builder gives a request for change in Bank details of the builder, then the same to be update in MIS through Technical Services Group.

10. Quarterly Review:
‘ All APF projects will be reviewed by Technical Manager / External Vendor to check progress of construction and any market feedback.
APF Policy and Process Note
‘ Price MIS will be updated internally with the feedback of external vendors and team’s inputs.

11. Safekeeping of Master Files:
Once the project is approved and all relevant documents are filed in the project master file, the same needs to be handed over to the respective Hub Operations Manager, within 30 days of approval, for safekeeping of the records. A shadow APF File will be kept in the Hub/ Branch for future reference. All periodic reports will be kept in branch for six months and thereafter handed over to Branch Operations to be filed in original APF file.
12. Non-APF Projects:
All multi-unit under-construction properties (other than resale cases in completed properties & direct allotment from development authority) need to be done as APF only. No individual unit would be allowed to be funded if the same are not booked as an APF. ZCM with recommendation of Technical Manager can deviate for funding individual units without APF.
Project shortlisting: In consultation with Sales team, Technical Services Group (TSG), on periodic intervals, will circulate a promising list of projects in metro cities and non-metro cities on the basis of developer reputation, project fundamentals and developer relationship with PNBHFL.

13. MIS:
Monthly MIs:
‘ List of Cat A+, A, B and C approved in the month.
‘ List of WIP cases for APF. ‘
List of APF rejected in the month/ closed in the month.
‘ Builder penetration o Builder wise exposure of Project wise exposure (Approved limit as well as disbursed amount in ADF/ Flexi/ CLP) o CF funded penetration
‘ List of Builders/ projects with subvention closed in the month o Approved limit as well as disbursed amount
Quarterly MIS: ‘ Quarterly sanctioned and disbursement figures in APF projects
Half yearly MIS: ‘ Any developer having >60% under construction exposure in a market ‘ Any project having >25% of total under construction exposure in a single project in a market ‘ >60% ADF in a single project.
Name of the Builder/Developer
Name of the Project
Address of the Project
Phone/Contact Number
Address of the Developer
Nearby Landmark
Class of Locality
Proximity to Civic Amenities
Location and Surroundings
About project

Product Purpose
Residential Home Purchase Loan
(New & Resale) (RHPL/RHPLR)

‘ Purchase of a ready to occupy complete residential property. This includes direct from builder / Development Authority / State Housing Board / any other competent government authority who has constructed the property.
‘ Purchase of Builder / Development Authority / State Housing Board / any other competent government authority under-construction property. This includes constructing an apartment building, row houses or independent houses and the borrower wants to purchase the under-construction property. This would also include properties where the builder is yet to commence construction and has commenced the bookings process.
Residential Self Construction Loan (RPCL) ‘ This would include a self-construction case where the land is already owned by the borrower and the borrower now requires finance for constructing the residential house property.
Residential Plot + Construction Loan (RPCL) ‘ For financing the purchase of land and the construction of the residential house property thereon.
‘ The sanction would be done in two parts ‘ one for land and another for construction.
‘ The first disbursement for the first part would be booked as a land loan. No interest certificate would be provided.
‘ When construction commences, the second part for construction would be disbursed. A revised consolidated sanction letter would be issued to the borrower for outstanding of land loan and amount for construction.
Home Extension Loan (HEL) ‘ For financing the extension of a borrowers existing residential house property. In other words the borrower may need additions in the form of new rooms or floor to his existing residential house property and therefore requires a loan for the same.
Home Improvement Loan (HIL) ‘ For financing the renovation of a borrowers existing residential house property. This may entail painting, woodwork, re-fabrication of the existing structure, new flooring or any other form of renovation which may be required by the borrower and is fixed in nature to the structure.

Residential Plot Loan (RPL) ‘ For purchase of a residential plot of land.
Non Residential premises loan (Purchase, construction and extension) (NRPL) ‘ For purchase, construction extension of an office clinic, shop or other commercial property.
Loan Against Property (LAP)
(residential & construction) ‘ For business, marriage, education, medical treatment or any other personal need.

‘ Application form


‘ Write all the information in BLOCK LETTERS.
‘ Do not overwrite nor use correction fluid.
‘ Tick the box wherever applicable.
‘ All details must be filled in, write NA if not applicable.
‘ Add another application form if there is more than one co-applicant in the loan.
‘ Ensure that all the documents are self-attested by the applicant and co-applicant

The duly filled fixed deposit application form along with the required documents such as Address proof, signature proof, for last 3 months’ salary slip, for last 2 years Form NO 16, for last six months bank statements and Cheque/ DD has to be submitted at the nearest PNB HFL branch. The Ref is generated by the branch and sends the file in the Hub. CPA checks the file documents.
Salaried Employees Self Employed / Professionals
Dully filled Application form with the photograph Dully filled Application form with the photograph
Age proof ‘ Photocopy of Passport / voter ID card / Driving license / Ration card / Life Insurance Policy / Birth Certificate / School Leaving certificate (10th) / Employee Id (only for PSU / Govt. Employees. Age proof ‘ Photocopy of Passport / voter ID card / Driving license / Ration card / Life Insurance Policy / Birth Certificate / School Leaving certificate (10th)
Residence proof ‘ Photocopy of passport / Voter ID card / Driving License / Ration Card / Original Letter from Employer on the letterhead and signed by Authorized Signatory / Utility Bills (latest 2 months & rental agreement / Bank statement. Residence proof ‘ Photocopy of passport / Voter ID card / Driving License / Ration Card / Original Letter from Employer on the letterhead and signed by Authorized Signatory / Utility Bills (latest 2 months & rental agreement / Bank statement.
Latest Salary ‘ slips for last 3 months Certificate and Proof of business existence along with business profile
Form 16 for last 2 years
Last 3 years Income Tax returns (Self and Business) with profit and Loss Account and Balance sheets duly certified / audited by a Chartered Accountant
Last 6 months Bank Statements (Salary Account) Last 12 months Bank Statements
(Self and Business)
Processing Fee Cheque in favour of ‘PNB Housing Finance Limited’ Processing Fee Cheque in favour of ‘PNB Housing Finance Limited’
After checking the documents in the file, CPA takes a decision to Login the file or not (Hold). CPA inserts the file data in the Kastle software and attaches CIBIL (credit Information Bureau India Limited) in the File. The file is sent for FCU (Fraud Control Unit) checking. The credit manager takes the decision of sanction of the loan amount. The underwriting team check that the customer is eligible or not for the loan amount. They check all the information in the file (CIBIL, KYC, Income Documents, and Bank Statement) given by the Customer. They check previous loans and overdue in the CIBIL. According to the PNB HFL policy, they check the eligibility of the customer.
FOIR = (EMI on PNBHFL loan + other fixed monthly obligation) / Gross monthly
Fixed Obligation to Income Ratio

If gross monthly income is >= Rs 10000 and < Rs 20000 FOIR is 40%
If gross monthly income is >= Rs 20000 and < Rs 50000 FOIR is 50%
If gross monthly income is >= Rs 50000 and < Rs 100000 FOIR is 55%
If gross monthly income is >= Rs 100000 FOIR is 60%
LTV Loan to value) = Loan Amount Availed / value of the property

The eligibility is determined by the Underwriter on the basis of factors such as income, age, qualification, number of dependents, applicant and co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings and prior credit history. Further, the loan eligibility also depends upon the value of the property selected by the customer. The PD (Personal discussion) is done by underwriter or vendor, irrespective of the loan amount. The Company can fund up to 90 % in case of home loan and up to 60% in case of loan against property. The property investigation and Title investigation are required during the sanction and disbursement time. The title of the property should be clear, marketable and free from any encumbrances. The sanction conditions are given by the underwriter. If the credit manager satisfied with the given information, then he sanctioned the loan amount.
Legal Process (Title Investigation):
‘ Initially, the sales team collect the all copies of property documents from customers.
‘ After that, all property documents submitted by sales team to their respective branch.
‘ Later on, branch sends all that property documents to its empanelled legal agencies for legal opinion and search at sub ‘ registrar office.
‘ Legal agencies give us legal report on the basis of that documents which are provided by customer, along with their search certificate for 13 years search.

‘ In case of under construction property

‘ All 3 points discussed above are same in the legal process for under construction cases.
‘ Branch has send scan or physical copy of property documents along with LOD & Foreclosure letter / statement (for balance transfer cases), Agreement to sell with NOC for transfer (Builder transfer / endorsement case) to internal legal
‘ After the perusal of documents internal legal issue legal opinion report on mail.
‘ Case type:
1. Resale
2. LAP
3. Builder purchase
‘ Site inspection:
In site inspection we see that wether, it’s a commercial property, builder floor, developers flat, authority flat, in dependent raw house. We also check that there is no violation of law regarding the property, means if it’s a residential property and owner is using it for a commercial use or visa-versa. There is no violation
of byelaws.
We also see that what isin the east, west, north, south of the property. We click the photographs of the property and all the information is uploadeed in the software.

‘ Property Documents:
What we do in this is we check that area that has been mentioned in the documents is same at the time of inspection. There should be no deviation in it.
In cae of the deviation we give the value only of the permissible area.

‘ Value
We find out the value of the property by sales comparison and by asking the dealer being as a seller or as a purchaser. We ask dealer about the latest sale happened in that particular area to get idea about rate .

‘ Final report:
After all the things are done then report is made. Every valuation firm has there own format of valuation report.

‘ Credit team:
Then value is given to credit team and after all the process is done credit team decides wether loan should be given or not. If yes then how much loan should bank give.

10 Type of structure Mixed
Land/Plot Area .00 Sft
No of Blocks 0
No of Units 1


No. of Floors 4
No. of Lifts 0

Unit details Located on Floor No. First Floor
No. of rooms 2BR+DR+Kitchen+2Bath+
Balcony Sft.
Super Built up area 700.00
Carpet area 610.00
Remarks on view from property Road
12 Quality of construction -Good Exteriors- Good Interiors Good
13 Age of the property 10 Years Residual life 50 years

14 Sanctioned plans verified with approval no Not Provided

Ownership type (Leasehold/
Freehold) Freehold
16 Property documents verified Only photocopy seen of CD in Favour of Harshi Syal
17 Is the property within Municipal Limits Yes
18 Permissible usage allow as per master plan Residential

19 Setbacks As per plan/
Bye laws In Mtr Actual at
site In Mtr Deviat ion % Remarks, if any
Front – – – –
Side1(Left) – –
Side2(Right) – –
Rear – –

20 Floor Wise Area (In Sft.)
Area’s Basement Stilt Ground First Second Third
Permissible area 0 0 0 700 0 0
Total Constructed 0 0 0 700 0 0

(A) Description of Constructed Area and Rates

21 Description Area(Sft.) Rate (Sft.) Amount in `
Land .00 0 0
Construction (On Completion) 700.00 10300 7210000
Stage of construction In % 100
Recommended Construction Value In % 100
(B) Value of Extra Amenities if applicable
Car Parking PLC IDC EDC Power Backup Other

0 0 0 0 0 0
Total Amenities charges 0
Total Market Value of Property (A+B) in ` 7210000

Forced Sale Value in ` 5768000.
Approx. Rentals in case of 100% complete property in ` 12000

As per deed NA NA NA NA
At site Open Open Other Flat Entry/Flat
Boundaries Matching Cant Comment
Remarks-: The property is MIG Flat on First floor. It is Vacant, These are known as Pink Apartment .

Declaration: 1. We hereby declare that we have no direct or indirect interest in the valued and the information furnished in the report is true and correct to the best of my knowledge of belief. 2. This report does not give any opinion of the authenticity of the documents given for valuation nor does it comment on the legal aspects of the property. 3. This report cannot be used for any legal disputes. 4. The validity of this report is 60 days from the date of issue. 5. Fair Market value indicated is our opinion, it must be recognized that the real estate market fluctuates with internal and external influences and hence, the value should be reviewed at suitable regular intervals. 6. The Client is free to take another independent opinion.

Address: Flat No-389 First Floor Pink Apartment Group-2 Sector-18-B Dwarka Delhi 110077 Sagi/PNB/Resale/2016/July/17

Route Map: Source Google Map

Things to look for a project:
‘ Asset Class
‘ Project
‘ Location
‘ Viability
‘ Costing
‘ Sales
‘ Approvals
‘ Valuation

For fair assessment of a transaction, Technical Group’s member will look in to the following things. These points become crucial for Tier II & III cities and tertiary locations in the metro cities.
‘ City/ Market Outlook
‘ Demography and Real estate growth drivers
‘ Existing CF cases and current exposure
‘ Micro Market Assessment
‘ Pricing Trend
‘ Product Positioning
‘ Developers’ Concentration
‘ Overall Dynamics
‘ Developer Profile
‘ Any reference check
‘ Performance on past projects
‘ Future potential for retail business
‘ Any negative news
‘ Site Location
‘ Connectivity
‘ Existing Infrastructure
‘ Site Analysis
‘ Signage, Hoardings
‘ Topography, Any existing structure
‘ Details of buildings
‘ Labour, Machinery and pace of construction activities
‘ Any other worth mentioning activity
‘ Surroundings
‘ Adjacent projects
‘ Any major infrastructure projects
‘ Major landmarks
‘ Any other observation

Following data points are crucial for finalising project cash flows:
‘ Sale Price
‘ Construction Cost
‘ Sale Velocity (Also in consultation with Developer)
‘ Project Duration (Also in consultation with Developer)

‘ Finalisation of collateral
‘ 2x of the loan amount
‘ Type of collateral
‘ Exclusions ‘ Agricultural land, Industrial
‘ Approvals to be checked
‘ Title
‘ License
‘ Building Plans Sanctioning
‘ No of units and details
‘ Other statutory approvals
‘ Construction Schedule
‘ Proposed schedule vs. current status
‘ Time over run, if any
‘ Project Cost
‘ Details of Project Cost
‘ Details of Cost incurred so far
‘ Cost over run, if any
‘ Valuation
‘ For the project valuation: Residual method will be adopted (No use of DCF Method with future cash flows considering the escalation).
‘ Valuation report should contain following points:
‘ Estimated Land Value = Net revenue ‘ Expenses ‘ Developer’s Profit
‘ Project Value on completion = Land value + Const. Cost
‘ Sold unsold status (as stated by developer)
‘ Sold stock value (as stated by developer)
‘ Value of unsold stock
‘ Proportionate Land Value
‘ Construction Cost as on date
‘ Value of unsold stock after completion
Challenges/ nuisances in the collaterals provided:
‘ Fragmented land OR un-contiguous land (Townships)
‘ Land locked land
‘ Clear Access OR frontage
‘ Ready to use apartments ‘ Occupancy
‘ Comments on features/ elements which can impact the valuation drastically ‘ STP, Nallah/ River, Cremation ground, Threat of acquisition etc.

Marketability depends on following points:
‘ Location and nearby landmarks
‘ Social as well as physical infrastructure
‘ Demand & Supply ‘ City level, Micro market level
‘ Neighbourhood and Competition
‘ Micro market projects
‘ Product
‘ Pricing
‘ Scale

Quarterly Monitoring includes:
‘ Construction status and progress
‘ Valuation as on date
‘ Sold and unsold stock
‘ Cash flows
‘ Any negative positive news
‘ Retail business
‘ Any CF project should be deemed APF
‘ Team will capture all of the on-going projects
‘ Developers which have come at the log-in stage also, team should capture all their projects
‘ Monthly sales and penetration
‘ Relationship
‘ Business

There is one project in sec-74 Noida for construction finance. Pnb is financing that project
Site Inspection

I,______________, along with the Technical services representative inspected the site on 10/07/2016. The details of the observations and the information provided by the representative of the client has been included as part of the report.

Basis Of The Valuation

Valuation of the assets under consideration
Objective of the report

The objective of this report is to arrive at fair market value of an under construction residential Group Housing Project ‘ABC Project’ Sector-74, Noida,U.P., owned by M/s XYZ Ltd for collateral securityis carried out on the basis of our perception about the macro & micro economic factors presently governing the real estate industry, location of property, existing market conditions, degree of development of infrastructure in the area, demand-supply conditions, internal amenities, common amenities etc.


A residual method of valuation has been adopted for finding the fair market value of the property.
Market Overview

Noida is located in Gautam Buddh Nagar district of Uttar Pradesh state India. Noida is about 20 kilometres (12 mi) southeast of New Delhi, 20 kilometres (12 mi) northwest of the district headquarters, Greater Noida and 457 kilometres (284 mi) northwest of the state capital, Lucknow. It is bound on the west and south-west by the Yamuna River, on the north and north-west by the city of Delhi, on the north-east by the cities of Delhi and Ghaziabad, India and on the north-east, east and south-east by the Hindon River. Noida falls under the catchment area of the Yamuna river, and is located on the old river bed. The city is also famous for its wide roads, excellent maintenance and modern lifestyle.
Noida originally consisted of around 100 villages, but now comes under the Gautum Buddh Nagar District of Uttar Pradesh. As per provisional data of 2011 census, Noida had a population of 642,381, out of which males were 352,577 and females were 289,804. The literacy rate was 88.58 per cent.There are people of almost all major religions like Hinduism, Islam, Christianity, Sikhism, Jainism, Zoroastrianism etc. Noida stands at 17th place when it comes to cleanliness of a city in India; by comparison, Gurgaon and Faridabad in the National Capital Region stand at 87th and 237 respectively. The creation of associated physical infrastructure is higher in Noida and Greater Noida. Gurgaon and Faridabad are at the opposite spectrum. Most of the land in Noida is not very fertile and the agricultural output is low. It is in the flood plains of the Yamuna river on one side and the Hindon river on the other. Many villages are visible from the Noida Expressway, beginning from the Mahamaya flyover to Greater Noida on both sides. One end of Taj expressway terminates on Noida Expressway near Hindon river and other at Agra. U.P. until the 1980s these villages were flooded every 2’3 years, resulting in people temporarily moving to other places in Noida, and even as far as Mehrauli in Delhi.

Noida Economy

Noida is a major hub for multinational firms outsourcing IT services e.g. Sapient, Fiserv, Headstrong, EXL Service, First Flight Courier LTD, Students-Leads, IBM, Miracle, AON Hewitt, Fujitsu, CSC, TCS, WIPRO, Padma Infocom, HCL, Tech Mahindra, Adobe Systems, Ericsson, Dell, Sparta Consulting, Patni Computers, Corbus, Accenture, Samsung etc. Many large software and business process outsourcing companies have their offices in the city.
Energy and Power Utility companies such as Reliance Infrastructure, NTPC Limited, Tata Power, Gas Authority of India Limited, Indian Oil Corporation, Bharat Heavy Electricals Limited, Oil India Limited, Samsung Engineering, BGR Energy Systems Ltd have their corporate offices in Noida.
Many other companies have their Indian branch offices in Noida, because of many factors, including its Special Economic Zone status, its suburban atmosphere and its proximity to Delhi. Noida also hosts the head office of the Software Technology Park, which was established by the Government of India to promote the software industry. In the Special Economic Zone (SEZ) Sector 135 along the expressway TCS, Accenture, Genpect and Steria have started their offices.
Noida is a major hub of industry. Noida has quickly emerged as a hub for automobile ancillary units, with companies like Escorts, Honda-SIEL, Moriroku Technology India Pvt Ltd and New Holland Tractors (JV of FIAT with Ford). A Daewoo plant was also located in the city, but has since closed. Various MNCs and major manufacturers like Alstom, ISGEC, LG, Samsung, Barclays, Ericsson and music company T-Series also have their corporate offices in the city.
Film city, established by Sandeep Marwah, is a hub for major news channels and studios. News channels such as Zee News, NDTV, TV Today groU.P., CNN-IBN, CNBC, NewsX, India TV are situated here. Noida’s proximity to Delhi, which is the political hub of the country, makes it an attractive destination for news channels. Commercial activities have also risen in recent years, with a spate of new malls and multiplexes.
Development in industry, commerce and trade have led Noida to be a model city in U.P.. It is a major revenue earner for the government through taxes. The Noida model is now being replicated across various cities in U.P., with a proactive development agency working to achieve high growth rates for business, industry and commercial ventures.
Location Overview

Developers and builders are coming U.P. with many in Noida-Greater Noida. On offer are a slew of housing options in different sectors of these twin cities. Sectors 34, 50, 74, 77, 76, 78 & 79 all near Noida Extension, are being developed at a rapid rate. Here, prices are competitive in comparison to the other sectors of Noida.
Sector-74 is one of the prime localities of Noida. The price trend in Sector-74 has been witnessing a downtrend. The price per sq ft was Rs 4067 in Oct-Dec 2011 quarter which rose to Rs 5040 in the next quarter of Jan-Mar 2012. In the succeeding Apr-June 2012 quarter, the rate per sq ft fell to Rs 4354. But the price in the locality are stable and increase gradually and demand also in mind as the development is near Near to Metro City Center Noida, Fortis Hospital, Noida, Proposed Metro Station at Sector-78 to Expressway to Greater Noida

Location Plan
Property Details

8.1 Name of the owner
M/s XYZ Ltd

8.2 Address of the Property
Sector-74, Noida,U.P.

8.3 Class of Locality
Under Developing stage

8.4 Proximity to Civic Amenities & Location
Within a radius of 10 Km.

8.5 Site Area
XX acres

XYZ Ltd brings forth a first of its kind luxurious project under the name ABC at Sector 74, Noida. These Luxuriously comfortable and soul pampering homes offer a range of hi-end lifestyle abodes like Independent Villas, Penthouses and Luxury Apartments. Apart from this the location also adds to the value of the project in terms of serenity and peace. Though this neighbourhood has abundant supply of new projects, there is steady end use demand.

‘ 10 Mins away from Sector-32 Noida District Central
‘ Excellent connectivity with major landmarks in Delhi NCR
‘ Reputed institutional & medical facilities in close vicinity
‘ Utility points like ATM, Banks, Shopping malls, within the radius of 3-5 kms

The surrounding area is yet to be developed and this has given the authority and developers a chance to carry on a planned development here. As it is near district centre Noida, one can travel to Delhi. The place enjoys the status as the most well planned city in NCR, having high connectivity with Delhi as well as Ghaziabad (15-minute drive), Greater Noida (20 minutes), Vasundhara (30 minutes), Indirapuram (20 minutes), Vaishali (25 minutes) Strategic location with convenient approach located at Noida, Ghaziabad & Greater Noida. Thus considering the demand, proposed infrastructure, etc. the projects shall have good marketability subject to the condition that developer gives scheduled completion of the project.


Approvals Provided
Complete Set of Sanctioned Plans
Inventory in specified format
Environmental Clearance
Height Clearance
Pollution Clearance

Builder Detail

XYZ India Limited is a flagship company of XYZ Ltd Group, which was incorporated on November 11,1991 as XYZ Ltd Farms and Services Private Limited Company. The company was converted into a public limited company on April 13, 1992 and name of the company was changed to XYZ India Limited on March 12, 2009.

The group operates in the Real estate industry and has provided the much needed housing facility and infrastructure support for the needy middle income groups in Dilshad Colony, Vivek Vihar and surrounding areas in Delhi as well as in Shalimar Garden, Vikram Enclave, Ram Prastha, Surya Nagar, Vaishali, Vasundhara, Indirapuram, Crossing Republik etc. across the border in Uttar Pradesh. The group has successfully completed various housing projects of different sizes and catered to different requirements. It has built U.P. a reputation at par with the top ranking builders and developers in the East Delhi areas. The group is amongst the prime builders in the East Delhi having successful track record of over 17 years.

Project Detail

M/s XYZ Ltd is developing Group Housing complex named as ABC Project, and got plans approved for developing high rise towers with 255 dwelling units. Currently there are 2 towers with approved building structure of 2B+G+26. The subject development is at initial stage. Thus progress is 8%

Valuation Based on residual Method
Valuation of “ABC Project”
S.No. Unit Amount
1 Built up area Area of group housing Sq ft 5,05,696
2 Add for loading – of saleable area Sq ft
3 Salable area of Residential (total) Sq ft 3,85,945
4 Salable area of Commercial Sq ft 18,500
5 Construction area for basement Sq ft 37,889
6 Cost of construction per sq ft. for Residential Rs. 1,600
7 Cost of construction per sq ft. for commercial Rs. 1,100
8 Cost of construction per sq ft. for Basement Rs. 900
9 Construction cost (Residential+Commercial) Rs. 6378,62,000
10 Construction cost for basement Rs. 341,00,468
11 Total Construction Value Rs. 6719,62,468
12 Average ongoing sale price (Residential) Rs/sqft 4,800
13 Average ongoing sale price (Commercial) Rs/sqft 27,000
14 Average price for parking sale per parking 3,50,000
15 No of car parks 255
16 Group Housing-Residential Rs 18525,36,000
17 Commercial Rs 4995,00,000
18 Car parking Rs 892,50,000
20 Other Charges Rs
21 Net Revenue Rs 24412,86,000
22 Site Development Cost @20,00,000/- per acre Rs 25,65,884
23 Super Structure Construction Cost Rs 6378,62,000
24 Basement Cost Rs 341,00,468
25 Add for Architect fees (4%) Rs 268,78,499
26 Marketing Expenses (6%) Rs 1464,77,160
27 Contingencies (5%) Rs 335,98,123
28 Builder profit 20% Rs 4882,57,200
29 Proportionate Cost of funds (50% of total cost @ 14.5% for an average of 3 Years ) Rs 1917,22,364
30 Land Cost to be Paid to the Authority Rs 1700,00,000
31 FSI Cost to be paid Rs 1791,00,000
32 Total Expenses Rs 19105,61,699
33 Net Value of Land Rs 5307,24,301
34 FSI Cost as on date Rs/sqft 1,049
35 FSI Cost on saleable area basis as on date Rs/sqft 1,375
Project Value On Completion
36 Project Value(Land+Construction) Cr 141
Project Value As on Date
37 Stage of Construction % 8%
38 Recommended % 8%
39 Present Value of construction Cr 7.05
40 Present Project Value (Land+Construction) Cr 60
Value Of Unsold Stock
41 Unsold Area sqft 4,04,445
42 Unsold Stock As on Date Cr 60.12
43 Value of Unsold Stock On Completion Cr 148
Saleable area taken as per provided by developer

Considering location of property, marketability, demand & Supply, amenities and taking economic factors affecting the real estate industry/value and based on the information and actual observation valuation of Remaining interest in the property owned by property owned by ‘M/s XYZ Ltd Located at Sector-79, Noida, U.P. is Value of Unsold stock is 60.12 Cr as on 14/07/2015, i.e. date of valuation.

Source: Essay UK - http://buystrangestuff.com/essays/architecture/apf-policy-process-note/

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