Alleged violation of environmental and development control norms set developer Orbit Corporation's stock price plunging 4.30% or Rs 3.20 to end at Rs 71.20 on the BSE. It touched an intraday high of Rs 74 and an intraday low of Rs 70.10. Over the past one month the stock has underperformed the market with a near 10% fall compared to the Sensex fall of a little over 1%. There were pending sell orders of 165 shares, with no buyers available. The total traded volumes were of 294,402 shares. However, the share slipped 44.63% in last three months. Today, the realty index was down the most i.e. 3.55% at 2,570.94.
Why the fall? Media reports suggest that Brihanmumbai Municipal Corporation (BMC) has issued a stop-work notice to the company's Marine Drive tower project for allegedly violating environmental and developmental control norms. The notice was issued by the BMC to Vasant Sagar building in late December 2010 after residents of the neigbourhood complained of irregularities in the proposed structure, which is also located in a heritage zone. Reportedly, two floors of the building have been constructed till date. Also, the Federation of Churchgate Residents found that the company, in addition, violated development control, CRZ i.e. coastal regulatory zone and heritage norms. The federation said that the developer had permission to build only six storeys and has now applied for permission to take it up to 14. A legal notice was sent by the federation to the BMC asking the corporation to take notice of violations and issue a stop-work order. Apparently, an inspection was carried out by the BMC at the site and found construction to be beyond the plan that was approved. For the quarter ended September 2010, Orbit's net profit dipped 36% to Rs 16 crore on a 30% drop in net sales of Rs 97.7 crore as compared to its reported numbers in September 2009. Peer comparison:| Company | Last Price (Rs) | Market Cap (Rs in Cr) | Sales Turnover (Rs in Cr) | PAT (Rs in Cr) |
| DLF | 259.2 | 43997.43 | 2419.21 | 765.06 |
| Oberoi Realty | 245.05 | 8043.36 | - | - |
| HDIL | 169.6 | 7038.47 | 1491.99 | 596.65 |
| Indiabulls Real | 120.8 | 4859.09 | 33.99 | 22.45 |
| Prestige Estate | 147.7 | 4845.65 | - | - |
| DB Realty | 196.5 | 4780.04 | - | - |
| Godrej Proper | 587.95 | 4106.83 | - | - |
| Sunteck Realty | 523.1 | 3293.76 | 16.38 | 7.24 |
| Anant Raj Ind | 100 | 2950.96 | 286.81 | 237.17 |
| Sobha Developer | 297 | 2912.5 | 1114 | 136.7 |
| Orbit Corporati | 71.2 | 811.41 | 487.11 | 95.97 |
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