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Economy & Market

Mediation in real estate sector

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Implicit or explicit agreements are a way of human life; contracts, written and unwritten, pervade our day to day lives, and govern our relationships, interactions and transactions. And, as long as there will exist contracts, there will be scope of disagreements and disputes, simply because, no agreement can be so detailed as to cover all possibilities and connotations, and close all loopholes for disputes. Conflicts inevitably arise due to opposing interpretations of open-ended or subjective clauses, occurrence of unforeseen events, situations going beyond the control of either party, loss of trust, bankruptcy, inadequate upfront disclosures and such other issues. Disputes fester until resolved, and therefore, dispute resolution mechanisms assume great relevance in our lives, businesses and society as a whole.
Historically, in India we have been too much over dependent on the formal justice systems, meaning the courts, and have somehow not given alternate/informal resolution of disputes the place that these deserve. May be this is due to the hangover of our colonial legal systems, or perhaps due to absence of enabling legislation or even due to our cultural biases. In any case, the result has been a huge backlog of cases in civil suits and criminal cases clogging up the judicial pipeline up to the Supreme Court, leading to the unfortunate phenomenon of justice being inordinately delayed, and thus effectively denied.Real estate/construction sector:The context
The total number of cases pending in our courts is in excess of three crore. The real estate industry in India has more than its rightful share of unfulfilled promises, delayed payments and/ or deliveries, intransparent regulations, cases of apparent abuses of dominance, reported non-compliances, defects in construction quality, commercial issues around valuations, taxes, etc., – all giving rise to obvious disputes and consequent litigations moving at a slow pace through our labyrinthine adjudication processes, such that the litigants’ grandchildren ultimately settle suits filed by their grandfathers.
If we were to expand the domain of real estate to include all land and immovable properties, the intensity of real estate disputes in family as well as corporate sectors will appear to be mind boggling. Given this stifling ambience, the sector was ripe for some interventions and disruptive regulatory changes. And, these have now arrived in the form of Real Estate Investment Trust (REIT) and Real Estate Regulation Bill. Although some of the rules/ clarifications are still awaited, and the Regulator Bill will only have teeth once all the states get their act in place by appointing the regulators, one must accept that these are very welcome developments which may nip some of the potential litigations in the bud. But this will only be clear as things unfold around these regulations.
Besides these regulatory developments, we also have a very healthy and active Competition Commission and Consumer Courts, both of whom have been seen to be visibly active and supportive of the consumers. The welcome entry of private equity/foreign institutional investors in the real estate space will no doubt force improvements in governance standards in the sector. All these augur well for the future, although the present situation remains dismal and disappointing, to say the least.Diverse stakeholders
In this scenario, congested with disputes and litigations, the thought of mediation comes along as a whiff of fresh air. Any process of dispute resolution which works on the principle of the disputants working together to arrive at an amicable win-win solution and an agreement that normally is not up for further court room activity, has to be like a god-sent tool! However, considering that the sector has a very diverse group of stakeholders pulling apart vigorously in different directions, it may not be an easy going journey for mediation.Who are the stakeholders? These are :
– Developers
– Contractors
– Consumers/buyers
– Land owners/farmers
– Landlords and tenants
– Regulators
– Special interest groups/NGO’s
– Lawyers and judges and arbitrators
For obvious reasons, some of the stakeholder groups might find it in their interest if the current spate of litigations continue unabated. To break this traditional pattern, some more disruptive interventions are required to change the mindsets.Possible role of mediation: How is it different?
In recent years, our world, and our society have witnessed a dramatic increase in litigation. Going to the courts to resolve disputes seems to be an almost instinctive reaction of our citizens. However, the underlying reality is that lawsuits can be financially and emotionally challenging for all the litigants, and can even have an adverse impact on our economic progress over the long-run, particularly when they immobilise businesses. While buyers and sellers of real estate usually are able to settle the smaller irritants that come up in the course of their deals, sadly many other disputes end up in the courts.
Fortunately, there are healthier alternatives to litigation for resolving disputes. Mediation is one such option that is growing rapidly in popularity in the developed economies-a path that has the potential to dramatically reduce the time and cost of resolving disputes. Mediation can be the first step of resolution between the parties.
Mediation is the term used to describe a relatively informal form of dispute resolution that occurs outside of the dysfunctional court system. In mediation, the parties are facilitated by a neutral third person called a mediator. The mediator is not authorised to impose a decision on the parties or even suggest settlements; instead the mediator only catalyses/ promotes negotiation between the disputants with the aim of helping them in reaching a mutually acceptable settlement of their dispute.
To understand how mediation is different from other dispute resolution processes, it is helpful to keep in mind that both litigation as well as arbitration are adjudicatory in nature wherein an empowered body/person(s) decide the outcome. In both these processes, the disputants automatically take up adversarial positions which lead to loss of trust and fissures in relationships. Perhaps the most attractive aspect of mediation which scores over the other choices (arbitration or litigation ) is that here, the disputants find no need to resort to appeals and prolong the dispute, since the settlement arrived at is mutually agrreable! So, it is clearly seen that mediation should be the first choice of people in the Real estate sector. But what needs to be done to popularise this mode of alternate dispute resolution?Way ahead
The following lines of actions can be recommended to make mediation the first choice of all parties:
1. Increase awareness about mediation, its positive effects, and why is it far far better than the traditional channels of adjudication that we know of. For this, a professionally designed communication campaign must be put in place by the government, the bigger corporate in the sector, the industry bodies and chambers, the large law firms, all acting together. For this purpose, an appropriate body may be formed by the Ministry to coordinate all aspects of this promotion drive, something similar to the PCRA or BEE, supported by a strong communication strategy and a commensurate budget.
2. We have to also nudge people towards mediation; for this, subject to legality, the government may make it mandatory/ recommendatory for all contracts/ agreements to have a clause stipulating mediation as the compulsory first stop in case of any disputes, much like the position enjoyed by the arbitration clause today. It has to be seen if this would require the passing of an appropriate act on mediation or not.
3. Thirdly, we have to strive to make mediation as friendly, soothing and as non-adversarial in reality, as it promises to be in theory. This can only be achieved if we avoid people with traditionally adjudicatory mindsets (such as most judges) who come from a position of power and authority, as well as people with deep-seated adversarial mindsets (such as most lawyers), as we create a facilitating kind of mediation universe in our country. Evidently, we do not need professionally judgemental personalities in this business, because a Mediator has to be the exact opposite of being judgemental. Obviously, people with insights into people’s mind, like those with education in behavioural sciences, and people with a negotiators bent of mind, like qualified interlocutors, as well as domain experts in relevant fields of dispute who, with their expertise will be able to quickly open up new and unseen opportunities of resolution, are the right kind of people to populate the roles of mediators. Anything less, will make Mediation stumble early on its journey, and it may quickly lose its appeal instead of gaining ground.
One can only earnestly hope that someone somewhere is listening, and will perhaps, consider to act on these suggestions.– SUMIT BANERJEE

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Economy & Market

Hindalco Buys US Speciality Alumina Firm for $125 Million

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This strategic acquisition marks a significant investment in speciality alumina, a key step by Aditya Birla Group’s metals flagship towards becoming future-ready by scaling its high-value, technology-led materials portfolio.

Hindalco Industries, the world’s largest aluminium company by revenue and the metals flagship of the $28 billion Aditya Birla Group, has announced the acquisition of a 100 per cent equity stake in US-based AluChem Companies—a prominent manufacturer of speciality alumina—for an enterprise value of $125 million. The transaction will be executed through Aditya Holdings, a wholly owned subsidiary.

This acquisition represents a pivotal investment in speciality alumina and advances Hindalco’s strategy to expand its high-value, technology-led materials portfolio.

Hindalco’s speciality alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years. It has emerged as a high-growth, high-margin vertical within the company’s portfolio. As speciality alumina finds expanding applications across electric mobility, semiconductors, and precision ceramics, the deal positions Hindalco further up the innovation curve, enabling next-generation alumina solutions and value-accretive growth.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, called the acquisition an important step in their global strategy to build a leadership position in value-added, high-tech materials.

“Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.”

Ronald P Zapletal, Founder, AluChem Companies, said the partnership with Hindalco would provide AluChem the ability and capital to scale up faster and build scale in North America.

“AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and a consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”

An Eye on the Future

The global speciality alumina market is projected to grow significantly, with rising demand for tailored solutions in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of speciality alumina capacity and aims to scale this up to 1 million tonnes by FY2030.

Commenting on the development, Satish Pai, Managing Director, Hindalco Industries, said the deal reinforced their commitment to innovation and global expansion.

“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”

AluChem adds a strong North American presence to Hindalco’s portfolio, with an annual capacity of 60,000 tonnes across three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-standing supplier of ultra-low soda calcined and tabular alumina, materials prized for their thermal and mechanical stability and widely used in precision engineering and high-performance refractories.

Saurabh Khedekar, CEO of the Alumina Business at Hindalco Industries, said the acquisition unlocked immediate synergies, including market access and portfolio diversification.

“Hindalco plans to work with AluChem’s high performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share.”

The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.

 

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Concrete

Shree Cement reports 2025 financial year results

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Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

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Concrete

Rekha Onteddu to become director at Sagar Cements

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Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

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