Frequently Asked Questions

The Service Offerings of Alt DRX Platform is open to anyone who can invest in a manner that qualifies as domestic investments under exchange control and other applicable regulations in India. In all cases, any investment on ALT DRX Platform can only be made through an Indian rupee account. For more details on the process, please see

Digital Real Estate enables investment in Real Estate without physically owning it. It's a modern, asset backed, and convenient way to buy and sell real estate electronically/digitally with just a few clicks.

Tokenisation in Real Estate refers to the process of dematerializing properties into Digitally Tradeable Units, which enables everyone to buy, hold and sell properties 1 SQFT at a time. This solves multiple problems in Real Estate including illiquidity, cumbersome processes, restrictions on access and opaqueness of deals etc.

ALT.SQFT, in layman's terms are nothing but Tradeable Digital Assets. It captures a pre-determined financial value, that is proportionate to 1 square foot of real estate, held by an SPV, in which you have invested.

ALT.SQFT are allotted to you based on a specific Investment Opportunity that you have decided to invest in. They represent the loan that you have extended to a specific SPV, to help the SPV to purchase pre-identified properties and are held digitally in your Virtual SQFT Wallet. ALT.SQFT can be bought / sold digitally between users of the Alt DRX Platform. Each ALT.SQFT has a unique name / reference id and refers only to a specific Property Investment opportunity. The ALT.SQFT's value and income generation ability is hence linked to the Properties held by the specific SPV that has issued them.

As an ongoing investor in an ALT.SQFT, you shall be eligible to:

• Receive interest payments announced periodically, provided you hold the ALT.SQFT on the record date (being the date on which you are eligible to receive such payment is recorded);
• Receive repayment of the face value of the loans periodically at the discretion of the SPV;
• Receive repayment of the balance of the face value (after adjusting the payments towards the face value that is already made) at the end of the loan tenure upon the sale of the Properties held by the SPV;
• Receive redemption premiums (i.e., profit over and above the face value), if any, upon maturity of the loan;
• Receive sale proceeds upon the sale of the ALT.SQFT to other users of the Alt DRX Platform, post applicable taxes and levies;
• Other community benefits and social commerce offers that are available from time to time.

For more details on ALT.SQFT, please see

No, ALT.SQFT is not a Cryptocurrency. ALT.SQFT, in layman's terms, are nothing but Tradeable Digital Assets / Loan Units. It captures a pre-determined financial value, that is proportional to 1 square foot of real estate, held by an SPV, in which you have invested. Please refer to "What is ALT.SQFT?", mentioned above in this FAQ section.

You may be required to execute certain documents and agreements either digitally or physically. Our team will co-ordinate with you for the same for execution of all such documents and agreements which needs to be executed, whether digitally or physically. All the documents to be executed digitally are verified and executed through an OTP / Aadhar OTP based secure system when you press the "Accept" or "Invest" button. All the paperwork in the real world, including Property purchase documents and their registrations are done by the designated partners of the SPV and / or the appointed master property manager and / or the appointed escrow agent / administrators.

The number of ALT.SQFT issued by an SPV in a specific Property Investment opportunity every time a new property is set to be acquired will usually be equal to or lesser than the "Saleable Area in Square Foot Unit" of the Property that the SPV has identified to purchase. For example, if the identified Property to be purchased by the SPV is 1,350 square foot, then the number of ALT.SQFT to be issued for that Property Investment opportunity by the SPV will be 1,350. However the above is not applicable to India Investment Opportunity which invests in partnership rights / SQFT. of other specific Investment opportunities.

SPV (Special Purpose Vehicle) in the context of the Alt DRX Platform, is incorporated under the law as an LLP. The SPVs purchases the pre-identified real estate asset and manages them with the help of a professional team.

Each ALT.SQFT shall have a Principal Value which will be announced during the Private Opportunity of a Property Investment opportunity. The subsequent market value of the ALT.SQFT will be determined using a machine-learning, open-source algorithm that will assist users in real-time, dynamic price discovery. The platform using a supervised / unsupervised learning model will offer users daily a suggested price to buy / sell all the ALT.SQFT listed on the platform, thus helping them to make an informed decision, while purchasing or selling. The users, however, will not be compelled to use such pricing determined by the system and will be given the option (a price band) to transact at a price of their choice. The Properties held by the SPVs shall also be valued by an IBBI accredited valuer periodically.

The distributions will be as per the investment documents and the

. Unless communicated otherwise in the investment documents or on the Alt DRX Platform, 80% of an SPV's net distributable cash flow ('NDCF') & 80% of the Terminal NDCF (i.e., when the Properties are sold) will be paid out to ALT.SQFT holders. Any profit generated by the SPV post all its operating expenses and interest paid out to the ALT.SQFT holders, will be distributed as Profit Share to its partners. However, the quantum of such distributions is not guaranteed by any Party and is subject to market and other applicable risks. For more details, please see

There are two options to add funds to your Virtual Bank Wallet, namely through Internet Banking (i.e., NEFT / RTGS / IMPS) from your verified and linked personal bank account or through UPI, with the latter having restrictions on the amount of money you can transfer in one go. Here are the steps to Add money into your Virtual Bank Wallet: 1. Go to Add Funds option on "My Account" 2. Follow a one-time process to Link your INR personal bank account after a Penny Drop Verification Process initiated by Alt DRX Platform. You can add a Bank account, if they belong to you and not your friends or family 3. Clicking on "Add Funds" will take you to a secure payment gateway, where you can choose "UPI / Net Banking / Add Beneficiary". For the first two, input your bank log-in / UPI credentials and initiate transfer. 4. For the "Add Beneficiary" option, you will be given the details of your virtual account number (Account number, IFSC & other details). The same can be added as a Beneficiary (Do put account type as Virtual) to your linked INR personal bank account and money can be transferred through Internet Banking (i.e., NEFT / RTGS / IMPS). We suggest you use Net Banking on Desktop to do the same. 5. A successful transaction will result in the instant updation of the balances on your Virtual Bank Wallet on the Alt DRX Platform 6. You can either pre-fund your Virtual Bank Wallet prior to a transaction or do so while executing one.

Yes, they are. All funds are added to Your Virtual Bank Wallet, which is part of a Master Escrow Account maintained with ICICI Bank and administered by a reputed 3rd Party Escrow Agent. Your Virtual Bank Wallet also has a unique identification number that identifies you and the credit balances in your Virtual Bank Wallet will be displayed on your "My Account" page. You can also raise an online request to withdraw Funds from your Virtual Bank Wallet to your verified & linked personal bank account. The refund / transfer request shall be processed within 3 working days.

The minimum amount you can transfer into your Virtual Bank Wallet at any point of time is Rs 1. There is no maximum limit. We encourage you to withdraw any idle, un-deployed funds that you have in your Virtual Bank Wallet as a prudent step.

You can do so by using the "Withdraw Funds" option on "My Account" page. You can request for all the money or some of the money in your Virtual Bank Wallet to be withdrawn. The request received will be processed in 3 working days and transferred only to your primary linked and verified personal bank account. The first account that you verified and linked on the Alt DRX Platform shall be treated as your primary linked bank account. In case of any mismatch in name in bank account or other criteria, you may be asked to provide a self-declaration with regards to the same.

The fundamental principle of Alt DRX is to prioritise "Safety" over "Returns". Your investment is backed mostly by Ready to Occupy properties, whose legal title due diligence and valuation is done by reputed third parties. All SPVs strive to diversify investments into multiple properties to spread and minimize risk. You also have a right to vote in various important operational matters of the SPV while the day-to-day affairs are taken care of by the Designated Partners/Master Property Manager who have ample experience and knowledge of Real Estate in India.

As you know, Property Investment Opportunities aid you to make an investment into an SPV that in-turn purchases the Property (Properties) as per the Property Purchase Parameters (PPP). The SPV owns the Property (Properties) and pays the applicable statutory stamp duty and registration charges to affirm the ownership it has over the Property(/Properties). Further the original Property documents in the name of the SPV are held in safe custody by a reputed third-party custodian. The ALT.SQFT you receive after investing in a Property Investment Opportunity are held in its digital form on the ALT DRX Platform and the ledger balances of such ownerships recorded in secure blockchain-backed databases.

Alt DRX believes in 100% transparency in reporting. All property documents, rental agreements, tenancy details, title report, due diligence report, etc. are always made available on the platform through the dashboard. In case of any additional queries, you can always write to Alt DRX at reachus@altdrx.com.

Residential real estate offers stability and potential for consistent rental income and long-term appreciation. It caters to the ever-growing housing demand driven by urbanisation and population growth. Compared to other asset classes, it often exhibits lower market volatility, making it a dependable choice for investors seeking steady returns and portfolio diversification.

Portfolio Purchase Parameters (PPP) defining a class of assets/projects/developers in a specific geography are determined on the basis of market research conducted by renowned International Property Consultancies like Knight Frank or Colliers. Parameters like quality, amenities, future price growth potential and location advantage are used to further shortlist properties for purchase from an exhaustive list of projects/available purchase opportunities, which fit the investment thesis. These are developed by the top Real Estate developers in the city and are the best in the class in terms of quality, amenities and specifications. The per sq ft value and ticket sizes of each property is range bound to ensure future growth potential and liquidity. Also, the time frame for acquisitions is pre-decided so as to give the investors an opportunity to invest in the best investment portfolio.

Properties are selected through a comprehensive process involving top developers and expert institutions to identify prime locations. We negotiate the best acquisition prices, ensuring value for investors. Each property is evaluated for rental potential, market demand, and long-term growth prospects. Additionally, we collaborate with reputed property managers to maintain high standards and optimize returns. Legal and regulatory compliance is also rigorously checked to align properties with the portfolio's investment strategy.

To verify your KYC, you just need to enter your PAN, Name as per PAN & your Aadhar Number. Post Aadhar OTP, your KYC will be verified.

The following summarizes certain Indian tax considerations generally relevant to prospective resident investors and ALT.SQFT holders making an investment in the SPV / ALT.SQFT. It does not purport to be a complete analysis of all relevant tax considerations; nor does it purport to be a complete description of all potential tax costs, incidence and risks inherent in making an investment in the SPV / ALT.SQFT. It also does not deal with all tax considerations that may be relevant to specific / classes of investors / ALT.SQFT holders especially in light of their unique circumstances and their particular tax status. Accordingly, each prospective investor / ALT.SQFT holder should consult their own professional advisor as to the tax consequences.

The tax considerations stated below is based on the law and practice of the Indian Income-tax Act, 1961 (the "ITA") read with Income-tax Rules, 1962 (the "ITR"). The ITA is amended every year by the Finance Act of the relevant year. The tax rates provided hereunder are as per the current provisions of the ITA as amended by the Finance Act 2022.

• The interest pay-outs to you are based on the NDCF generated by the SPV. The NDCF generated by the SPV takes into account the operating expenses incurred by the SPV, on which the SPV may be liable to pay GST. Such GST costs could ultimately impact the interest payout to the ALT.SQFT holders.
• The SPV shall deduct taxes at the rate of 10% on interest payments to all resident ALT.SQFT holders
• Alt DRX shall deduct tax at the rate of 1% on sale of ALT.SQFT by resident ALT.SQFT holders on the Alt DRX platform
• 18% GST is applicable to all levies payable by the users to Alt DRX Platform
• There should not be any tax implications on repayment of loan amounts to the lenders to the extent of the face value of the loan units
• The SPV shall pay income tax at the 30% (plus applicable surcharge and cess) on its income and the share of post-tax profit distributed by the SPV to the partners shall be exempt in the hands of the partners

Note: The withholding tax rate may increase to 20% in certain circumstances. TDS rates specified above are for the resident investors as per the provisions of the ITA. In case of non-residents, the withholding tax provisions on payments made to a non-resident investor would be governed by the provisions of the ITA or applicable Double Taxation Avoidance Agreement ("DTAA" or "Treaty"), if any, whichever is more beneficial.

Alt DRX shall be withholding taxes on the trading of the ALT.SQFT on its platform on the basis that such ALT.SQFT qualifies as a virtual digital asset ("VDA") under the provisions of the ITA. While this is the view that the Alt DRX platform is adopting for withholding tax purposes, taxability on sale of such ALT.SQFT shall depend on its income-tax characterization (i.e., as VDA or capital asset) which should be confirmed by the ALT.SQFT seller with their individual tax advisors.

Note: TDS rates specified above are for the resident investors as per the provisions of the ITA. In case of non-residents, the withholding tax provisions on payments made to a non-resident investor would be governed by the provisions of the ITA or applicable Double Taxation Avoidance Agreement (“DTAA” or “Treaty”), if any, whichever is more beneficial. The withholding tax implications applicable to the non-resident investors under a beneficial DTAA need to be analyzed separately based on the specific facts.

Yes

Participation in Property Investment opportunities is subject to the Platform the

and

. Nothing contained herein shall be construed to mean an offer or an invitation to make an offer to SPV for investing in the properties. An offer shall only be considered to be made to such persons to whom a private placement memorandum (Information Memorandum) has been provided on a private interaction basis. This document is merely informative and not meant as an offer to, or invitation to any person to make an offer to, make an investment in the property(/ies) or the asset(s) or as a solicitation for investments. The Buying SPV and Alt DRX Private Limited expressly disclaims any obligation to release publicly any updates or revisions to any statement contained in this Information Memorandum. The investment outcome forecasts are for information purposes only and are only indicative in nature. The numbers are determined based on certain assumptions, hypothetical calculations, financial estimates and estimated returns which may fluctuate from time to time depending on business strategies adopted by the SPV, changes to the Indian economy, market volatility, force majeure events, and any other factors that may be beyond the control of the SPV. The above statements should not be construed as a statement of assurance of secure investments or guaranteed returns. The investments may vary subject to market volatility and all investments remain subject to market risk. The participant must carefully evaluate the investment opportunity, including the complete set of risk factors before investing in the same.

Consent from all Partners & ALT.SQFT holders is mandatory for new property acquisitions

MPM shall buy 10% of the reserved tokens