NEWSMAKER: Sushil Ansal

Trouble builds up

Sushil Ansal

For the relatives of the victims of the Uphaar cinema tragedy in Delhi, the inferno rages on even 10 years after the incident.

However, brothers and real estate developers, Sushil Ansal and Gopal Ansal, may have just begun to feel the heat. Their conviction, earlier this week, in the fire case at the Ansal property that claimed 59 lives, has sent shock waves through the real estate sector.

For, it's the first time that the owners, and not just the management, have been held responsible for criminal negligence. Delhi's additional sessions judge Mamta Sehgal has found the brothers guilty.

On their part, the Ansal brothers argued that they had resigned as directors of Green Park Theaters Associated Pvt Ltd, the owners of Uphaar cinema hall, in 1987.

They said that since they were not part of the company's board or involved in its day-to-day affairs, they should not be held accountable for the unfortunate event.

Today, Sushil and Gopal Ansal run two separate listed companies. Real estate industry observers say the Uphaar Cinema incident was responsible for the 1997 demerger and split of the original Ansal Properties group between the three brothers.

Yet others claim it was a prudent decision, taken to separate business interests from family matters. The eldest brother, Sushil Ansal, 68, promotes Ansal Properties & Infrastructure which is the flagship company of the original Ansal properties group. Gopal Ansal heads Ansal Buildwell and the youngest, Deepak Ansal, chairs Ansal Housing & Construction.

Ansal Properties & Infrastructure is the largest among the three companies with Rs 10,000 crore worth of projects at hand and a declared land bank of 7,000 acres.

However, it is also the company that's been the worst hit at the stock market. After the November 20 judgement, the company's scrip has fallen by 17.3 per cent to Rs 222.25 and the market capitalisation has been eroded by Rs 521.53 crore, from Rs 3,044 crore to Rs 2,522 crore.

Gopal Ansal, a keen golfer and a cricket fanatic, has had a much better run on the bourses. Ansal Buildwell's shares have fallen by only 1.15 per cent since Tuesday to Rs 90.

The company's market capitalisation has decreased by Rs 78 lakh to Rs 66.69 crore. The company has land reserves of 500 acres across cities like Jhansi, Amritsar, Kochi and Faridabad. It is currently developing 25 projects worth Rs 4,000 crore.