Three crucial decisions gave Mr Vadra a flying start in his real-estate foray: the generous overdraft from Corporation Bank, the timely approval from the Haryana government for commercial development of Mr Vadra's land, and DLF's decision to buy it at an enhanced value and to advance him most of the purchase price for an extended period.
Robert Vadra, who is at the centre of a controversy over his property dealings with realty giant DLF and others, began investing in real estate five years ago, in 2007-08.
He was already a wealthy man by then, not a struggling businessman who could scrape only a few lakh rupees together as capital for his new real-estate ventures.
His Artex export firm had the wherewithal to lend Rs 4.45 crore to one of his new firms (Sky Light Hospitality) in 2008-09.
The previous year, the company's directors (there were only two, Mr Vadra and his mother Maureen) had lent Rs 1 crore to another of his real estate firms (Sky Light Realty).
Apart from being wealthy, he must also have had excellent relations with Corporation Bank, whose Friends Colony branch (located close to Mr Vadra's companies' offices in the capital) gave an overdraft of Rs 7.94 crore to Sky Light Hospitality.
The newly incorporated company at the time had total resources of Rs 1 lakh, being its paid-up share capital.
Sky Light Hospitality invested the entire loan amount plus share capital in a piece of land at Manesar.
That was the first instalment, with a second instalment of Rs 7.43 crore paid the following year (2008-09).
It would be unusual for any public-sector bank to fund virtually the entire value of a big-ticket land purchase; perhaps the bank already had a business relationship with Mr Vadra, or they knew of his family connections, or both.
Whatever the case, they must have considered him a good risk - which, as it turned out, he was because the money was returned in a year or less.
Text: Business Standard