Ravi Karandeekar's Pune Real Estate Investment Blog

Consumer Court Orders Krishna Properties & Krishna Developers from Viman Nagar, Pune to Refund 5 Lakh Booking Amount & Pay 25,000 as Compensation to the Flat Buyer

2015-11-07T10:31:00.000+05:30

Consumer Court Cases Against Pune Builders:

File a complaint against a builder in consumer court

Pune district consumer disputes redressal forum has directed a developer from Viman Nagar to refund Rs 5 lakh, along with Rs 25,000 compensation, to a complainant for deficiency in service.

The forum held that the builder was liable for deficiency in service for not having started the construction of a residential project as per the schedule promised to the complainant, who had booked a flat in the scheme, and not returning the Rs 5 lakh booking amount.

A K Singh, proprietor of Krishna Properties and Krishna Developers, must return Rs 5 lakh and pay Rs 25,000 as compensation to complainant Subhas Das within six weeks from October 29 when the order was issued by the forum.

Das had booked a flat in December 2012 in the `Vridavan' apartment scheme. Between December 6, 2012 and January 4, 2013, Das issued five cheques to the builder, who assured him that construction would begin in January-February 2013. The cheques were of varying amounts, totalling Rs 5 lakh The construction work, however, did not begin as per schedule and Das started pursuing the matter with Singh. The latter kept evading Das, who then asked for the refund.

On October 14, 2013, the builder issued a cheque of Rs 5 lakh but it was returned by the bank due to insufficient balance. Later, Das moved the consumer court by filing a complaint alleging deficient service that resulted in mental and physical agony. He not only demanded Rs 5 lakh refund with interest at 24% pa but also demanded Rs 10 lakh compensation towards physical and mental agony .

The builder failed to respond to the forum's notices following which it decided to proceed ex parte against him. It relied on documents like the affidavit, the Pune Municipal Corporation's sanction to the building plan for the scheme, receipts issued by Singh against cheques given by Das towards the booking amount, bank statements of the complainant and the cheque issued by Singh which was returned by the bank, while passing the order of refund and compensation. Forum refund prod to builder

Ask Ravi Karandeekar:

If you want to ask me, feel free to call me on 919860044110. First 3 minutes are free! And for more than 3 minutes - pay as you wish - you decide the value of my advice.

Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
- on Video Hangout on Google+
- or on Skype (ravikarandeekar) .

For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

Ravindra Karandeekar,
Bank of Maharashtra.
Savings A/c no- 20047674794.
Branch- Bajirao Road Pune MICR Code 411014010.
IFSC- MAHB0000001

Consumer Court Orders Bhujbal Brothers Construction Company to Return Booking Amount to the Flat Buyer

2015-11-06T16:08:00.000+05:30

Consumer Court Cases Against Pune Builders:

Consumer Court Orders Bhujbal Brothers Construction Company to Return Booking Amount to the Flat Buyer

Click to Visit Original News about Bhujbal Brothers v/s Nobina Banerjee

Pune District Consumer Forum has ordered Bhujbal Brothers Construction Company - www.bhujbalbrothers.com - to return - the agreed amount - Rs. 14,14,790 - the booking amount plus interest - paid against the flat in Vatika at Balewadi - alongwith Rs. 50,000 for compensation & court case expenses to the flat buyer - Nobina Banerjee.

In May 2012, Nobina Banerjee paid Rs. 10,76,727 as a booking amount to the builder. However, the flat booking was cancelled. The builder agreed to pay Rs. 14,14,790 - the booking amount with interest.

However, Bhujbal Brothers Construction Company's cheques were dishonoured by the bank. So, Nobina Banerjee filed case against Bhujbal Brothers in the consumer court.

However, Bhujbal Brothers Construction Company ignored the court notice. So, in the absence of the builder, Pune District Forum gave the judgement based on the documents presented by the flat buyer.

Congratulations, Nobina Banerjee!

Ask Ravi Karandeekar:

Home loan tips for first time home buyers

2015-11-04T12:31:00.001+05:30

Five hacks to save money on a home loan:

Home loan tips for first time home buyers

If you already have a mortgage or are planning to avail of one soon, you are obviously confident of your finances, but a few tips to save money on your home loan couldn't hurt, right? Read on to find out more!

1) Check your CIBIL score and CIBIL report -
Once you are brandishing a CIBIL score of 750 and above you can go about home loan shopping.

2) The pre-purchase drill -
Make sure that you are aware of all the home loan features and the several fees and charges such as the processing fee, switching and pre-payment costs.

3) Negotiation is a powerful tool -
A high CIBIL score gives you the power to negotiate, so make sure you make optimum use of the same.

4) Make a higher down payment -
A higher down payment will substantially reduce your EMI burden, so it is definitely worth your best shot!

5) Pay the same EMI despite a falling interest rate regime -
If you keep paying the same EMI, you shall end up saving on your interest payment component and will have saved money in the long run.

Click to Read More

How are home loans being given by banks going up?

2015-11-03T22:46:00.000+05:30

There is no real time data coming out on Indian real estate which can be used to estimate which way are the real estate prices are headed:

There is no real time data coming out on Indian real estate which can be used to estimate which way are the real estate prices are headed - (Image - chennairealty.biz)

Every month, the Reserve Bank of India (RBI) declares the sectoral deployment of credit data. This provides details of the different kind of lending carried out by banks. One of the data points that the RBI shares is the total amount of home loans given by banks.

The latest data was released on October 30, 2015. As per this data, between September 19, 2014 and September 18, 2015, banks gave out home loans worth Rs 1,04,135 crore. This forms 21.6% of the total lending carried out by banks.

How was the situation a year earlier? Between September 20, 2013 and September 19, 2014, banks had given out home loans worth Rs 75,058 crore. This formed around 16.5% of the overall lending by banks.

So what does this tell us? Between September 2014 and September 2015, the banks gave out a greater amount of home loans both in absolute as well as proportionate terms, in comparison to the period between September 2013 and September 2014.

So far so good.

Now compare this to the news that you keep hearing about real estate companies sitting on huge number of unsold homes. If that is the case then how are home loans being given by banks going up?
Read more at - RBI needs to answer some questions on home loans

Related Story:

1) RBI move on loan-to-value ratio to cut down home loan rates: Crisil

Consumer court forces real estate company to return money to investors

2015-11-03T17:57:00.000+05:30

Possibly a first-of-its-kind order by a consumer court:

File a Complaint Against a Builder in Consumer Court

In its order, the New Delhi Consumer Disputes Redressal Forum had imposed penalty of imprisonment for three years under the Consumer Protection Act, 1986, on Madhu Singh, director of the company for failing to satisfy the decree order passed by the Forum.

The Forum had recently compiled all claims against the erring company and has ordered part-payment, to begin with, of amounts paid by them from money collected through sale of assets of the company. - Click to read more

Should I invest on Porwal Road in Lohegaon?

2015-11-02T20:40:00.000+05:30

Could a frog turn into a prince?

Porwal Road Lohegaon

I own a 2 BHK Flat at Baner. I want to invest in second property. I liked one property on Porwal Road at Lohegaon. A 2 BHK for 45. Builder told me that, soon, Lohegaon will be merged in PMC. What are your views on the development prospects of this area - in the next 5 years? How much appreciation can I expect? Sandeep Patil (name changed) asked me on 91 98600 44110.

Let us first confirm whether I have understood your question. If you keep your 45 Lakhs - today - in a bank FD - for 60 months - according to HDFC Bank calculator - on 2nd November 2020 - you will get 65,73,187 - but, you are sure - you will get more than 65,73,187 - if you invest in a property on Porwal Road in Lohegaon - and you are curious to know how much more than 65,73,187. Right? I asked.

No. I was not comparing it with the bank FD. I can't keep in FD which I don't have. I only have 20. Not 45. Said Sandeep.

Only 20! Then - how can you invest 45 in a property? I asked.

Home loan! Sandeep said.

I am confused. What are you exactly upto? Do you want to invest or do you want to create a debt - liability? I asked.

I want to invest. Sandeep said.

Good! And you can invest. Your 20 lakh. But, certainly, not 45. Because you don't have 45. Means - you can't invest in a property on Porwal Road in Lohegaon. I said.

What if I have? Will it give me good appreciation? What are your views? Without trying to hide his irritation - Sandeep asked.

Hypothetical question! If you had 45 - my guess is - you would not have considered Porwal Road in Lohegaon. Am I right? I asked.

Who are you? Mind reader? Sandeep asked in an irritated voice.

No I am not. There was no need to read your mind. You yourself told me. You asked - if I kissed this frog will it turn into a prince? I said.

What about you? Are you a property investor or a frog kisser?

Ask Ravi Karandeekar:

What is Transit Oriented Development?

2015-10-30T19:56:00.000+05:30

Transit oriented development: Game changer in real estate:

Transit-oriented development (TOD)

Transit-oriented development is a fairly new model of community development.

Essentially, it involves developing residential and commercial spaces as well as retail, healthcare and entertainment facilities in a manner that puts all of them within easy reach of the inhabitants.

The standard equation that is applied in transit-oriented development is that all developments must be within half a mile of good quality public transportation, or within a walkable distance.

Transit-oriented development brings many benefits with it:

Inhabitants of transit-oriented development areas can reach their places of work easily and with minimal transit, and likewise get back home faster.

This allows for more time spent with the family, which incrementally boosts well-being.

With significantly reduced commuting in transit-oriented developments as opposed to normal urban areas, pollution within the neighbourhood reduces drastically, leading to better health of the inhabitants.

Reduced traveling leads to increased household savings, and therefore better economic well-being.

In fact, people can choose to dispense with maintaining cars and two-wheelers altogether and rely solely on public transportation.

As a combined result of the above, both housing and commercial spaces in transit-oriented developments command a much higher demand than in normal urban areas - and therefore superior investment potential. Click to Read More

If a builder promises assured returns, ignore the offer

2015-10-29T17:59:00.000+05:30

Beware of builders that promise guaranteed returns, especially in commercial property. It’s a false promise:

No such thing as assured returns in realty

Basic things to look at while investing in any avenue are — risk, returns, time horizon, and the exit route.

Though such schemes (guaranteed - assured returns) offer high returns,
but at the same time,
risk is higher,
investment tenor is longer and
exit is also difficult.

Moreover, an exit may mean paying a heavy penalty.

Real estate has always been an integral part of investment portfolios,
but to benefit from it, one needs to be careful.

Given the current market conditions, it is advisable to invest in completed projects, be it commercial or residential.

And if a builder promises assured returns, ignore the offer.

No such thing as assured returns in realty

1) What!? Is Landson Realty's 'Wood County' an Illegal 'Collective Investment Scheme'?

Real Estate Channel 'Magicbricks Now' Launched

2015-10-29T08:48:00.000+05:30

Magicbricks Now To Go On Air from November 1, 2015:

Real Estate Channel 'Magicbricks Now' Launched

Media firm Times Network today announced launch of a new real estate and property channel Magicbricks Now, which will go on air from November 1, 2015.

The channel would target viewers in the 25 to 50 years age group, who are interested to buy, sell or rent real estate properties, the company statement said.

The channel would be distributed on DTH and cable platforms which carries Times Network. Read more at:

Marquee channel programmes include The Property Guide, The Home Buyer's Guide, Property Hotline, The Interiors Show, The Vastu Show, Real Estate Tycoons, and The News every hour. Read more at

1) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

Evaluate No Pre-EMI till Possession (20-80) or (10-80-10) Payment Scheme

2015-10-28T16:21:00.000+05:30

Know the home buying schemes well, before opting for one:

Know No Pre EMI EMI after Possession Offer

In this scheme the property is being bought with the home loan, the EMIs are on account of the buyer.

The buyer's credit history is at stake if for some reasons the project is delayed way beyond scheduled date.

In some scenarios the EMIs will kick in at the scheduled date even though the house or apartment is not ready.

Remember it’s a tripartite agreement between the buyer, bank and the builder. And the buyer is bound to start the EMIs even if the apartment is not delivered by the scheduled date as per the builder-buyer agreement.

This compounds the problem of the buyer due to his additional cash outflow, arising owing to EMIs. He continues to pay the rent for the house where he lives.

The purchased asset that is property in such circumstances cannot be sold (for obvious reasons) and buyer's inability to exit the project creates the financial stress.

Any default due to inability of the buyer to pay EMIs hurts his credit score and loan eligibility in future.

In these schemes buyer must also watch out for the interest being offered to him by the bank.

Is it close to the market rates?

Is it changing as per the RBI interest rates if floating interest rate option is chosen?

One must also scrutinize the loan agreement for the interest rates that will be levied on his home loan after the unit is delivered to the buyer.

Also one must note that the buyer will lose the pre-construction interest benefit if the construction phase has gone beyond three years;

So in-effect the No-EMI scheme until possession can become a trouble in buyer’s financial life if not assessed for risks it carries. Read More

Is Indian Real Estate 'Too Big to Fail'?

2015-10-27T10:20:00.000+05:30

Those expecting an overnight crash any time soon will be disappointed:

Over 7 lakh unsold homes in eight major cities including Delhi NCR, Mumbai, Bengaluru, Pune, Kolkata, Chennai, Hyderabad and Ahmedabad

There are simply too many vested interests in real estate to allow it to slip into panic-led chaos.

Politicians, real-estate developers, banks, NBFCs– all of them have too much at stake.

Then there are hard-working, salaried employees paying EMIs.

This is an industry which reaches a majority of India’s population.
Like Wall Street in the USA, India’s real estate industry is too big to fail.

At worst, it might see a Lehman-like moment.
A few builders will vanish but, as Wall Street figured out, a few casualties – like a Lehman or an AIG – are acceptable collateral damage in the overall scheme of things.

But the Government will cobble together a bail-out of sorts. Builders will be rescued, homes will be saved.
Read more at - Real estate is dead, long live real estate

Property Buyers' - Wait & Watch Policy - is Stagnating Pune Real Estate Market - Rohit Gera

2015-10-25T09:30:00.000+05:30

About 21% of the delayed real estate projects in India are in Maharashtra:

Rohit Gera, vice-president of the Confederation of Real Estate Developers Association of India (Credai) Pune Metro

“This year, we have hardly seen any major real estate project launches on Dasara. The demand is lukewarm. Consumers are waiting for a cut in lending rates which will improve their loan eligibility and get them a better deal. Till that happens, a lot of launched projects too will suffer," Rohit Gera, vice-president of the Confederation of Real Estate Developers Association of India (Credai) Pune Metro, said.

Gera said that timely delivery of properties is affected by long-drawn approvals process.

Labour issues and cash crunch are add ons - Gera added.

- Assocham paints gloomy picture for realty

Identify & Avoid Property Scams

2015-10-24T20:00:00.000+05:30

3 Red Flags to Help You Spot Property Scams:

Identify & Avoid Property Scams

An unusually attractive offer should make you extra cautious and prompt you to cross-check details. Here are three red flags you should watch out for before putting in your money.

Red Flag 1 : Sounds Too Good to be True -

An inherent characteristic of a scam is that it will promise unreal returns or “exciting” offers. Instead of getting excited about it, become extra careful.

Red Flat 2 : Builder is in a Tearing Hurry -

Is your builder in a hurry to close the deal? A developer or builder who has intentions to cheat will show an urgency to sell the property and will encourage you to make the down payment right away.

Red Flag 3 : No Clarity on Documentation -

In a genuine transaction, you will have to sign a set of documents, including title deeds, agreement of sale and so on to legitimatize the deal. Fraudsters, however, will urge you to go ahead and send them the money without signing any paperwork.

Click to Read More

1) What!? Is Landson Realty's 'Wood County' an Illegal 'Collective Investment Scheme'?

2) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

No Rule to Punish Builders Who Refuse Flats

2015-10-23T22:36:00.000+05:30

Housing Discrimination Against Non Vegetarians:

Housing Discrimination

The Brihanmumbai Municipal Corporation (BMC) has thrown its hands up over taking action against builders who are allegedly refusing flats to non-vegetarians.

While the civic body has said it does not have any provision in its rules to do so, the Maharashtra Navnirman Sena (MNS) has demanded that a law be enacted to prevent such acts. Failing to do this, it would take law in its own hands, threatened the party.

On the backdrop of reports of flats being refused to non-vegetarian people by some builders, MNS group leader Sandeep Deshpande had demanded that the BMC should not issue intimation of disapproval (IOD), commencement certificate (CC) and water connection to such developers. An IOD is approval of civil plans, while the CC authorises a developer to undertake the construction. Read more

1) Now Open! Kolte Patil Rice Plate House!! Are you Vegetarian or Non-Vegetarian?

6 Things Your Builder Can`t Do

2015-10-22T11:48:00.000+05:30

Tips for First Time Home Buyers:

Did you know about these 6 things your builder can't do but still does?
1) Charging for the Parking / Open Space
2) Delay in Handing Over the Possession
3) Delay in Completion of the Project
4) The Wide Chasm between the Promised and the Delivered
5) Bounced Refund Cheques
6) Denial of Basic Amenities
Click here to read more

Consumer court orders builder to pay residents Rs 1 lakh compensation for completion certificate delay

2015-10-21T12:52:00.000+05:30

Consumer Court Cases Against Pune Builders:

The additional district Consumer Disputes Redressal Forum has ordered city-based developer Balaji Constructions to pay a compensation of Rs 1 lakh to a housing society at Rahatani, along with litigation costs, for its delay in providing a completion certificate to flat owners.

Not just that, the forum took it a step further by asking the promoter to raze an illegal construction built by one of the members inside the society, for its 'deliberate' negligence.

In the order passed last week, the forum also directed Balaji Constructions to provide a completion certificate and conveyance deed within six weeks from the date of the order.

In case of failure, the developer must pay Rs 3,000 additionally to the society per month.

Nirmaladevi Heights Co-operative Housing Society's representative, Dinesh Raghunath Rokde, filed a petition in June 2013 against Balaji Constructions from Kalewadi Road in Rahatani. Click Here to Read More

1) Prudentia Towers at Wakad, Pune - Any Questions for Mr. Aditya Javdekar?

Builder - Buyer Agreement Not the Final Word

2015-10-20T10:55:00.000+05:30

Path Breaking Judgement of National Consumer Disputes Redressal Commission:

National Consumer Disputes Redressal Commission passed order for higher compensation for property buyers in a delayed project - ruling that builder buyer contract is not sacrosanct any more.

Delayed Possession of Flat....Stalled Project....What can Pune property buyers do?
The Case of Sanklecha Mango Woods, 2 BHK Homes at NIBM, Kondhwa, Pune:

Where to invest in Pune - Wagholi, Marunji or Narhe?

2015-07-08T14:02:00.000+05:30

Best locations in Pune for property investment:

From Panchshil to Playtor - Pune builders are struggling

When from Panchshil Towers behind EON IT Park at Kharadi to Playtor at Paud and Godrej Prana at Undri to Xrbia Eiffel City at Chakan are finding it difficult to sell their flats at the current property prices - nobody is thinking of investing for earning property appreciation in Pune real estate market in 2015. I was sure.

But I was wrong. Mr. Sujay asked me - Which is better area to invest - Wagholi, Marunji or Narhe?

If you ask someone working in Hinjewadi IT Park - he will tell you - Marunji is the best location to invest.
If you ask someone working in Kharadi - he will say - Wagholi has more potential for appreciation.
If you ask a Maharashtrian Punekar - he will tell you to invest in Narhe.
I told Mr. Sujay.

What does Ravi Karandeekar - Pune real estate investment adviser say? Asked Mr. Sujay.

Better ask the builders who have under construction projects in Wagholi, Marunji & Narhe! I said.

I asked. Those builders who have projects in Wagholi - claimed that Wagholi will give better appreciation. The builders in Marunji told me that Marunji is the hot investment destination in Pune. Properties in Narhe give better rental income & price appreciation - claimed builders in Narhe. Every builder claims that his location is the best. I am confused. Said Mr. Sujay.

Why don't you search 'Where to invest in Pune' on Google? I asked.

I did. Most of the articles suggest that all fringe villages of Pune are good for investment. But I want to know- in 2015 - which is the best location in Pune for investing. What is your opinion? Said Mr. Sujay.

The property buyers have their preferences & beliefs. The builders want your your money to build their projects. All of them - the property buyers, builders & media - earn - benefit - from promoting these locations. What am I going to earn - to benefit - by recommending any location? I asked.

That's why I am asking you! I am sure you will give me unbiased opinion. Said Mr. Sujay.

Thanks for the compliments! But, you know what? I only answer intelligent questions. At this point of time, when every builder is finding it difficult to sell his flats at the current property prices - any question about investing for appreciation in Pune real estate market is not an intelligent question. I said.

What say you? Is this the right time to invest in Pune? Please, share your views in the comments.

Ask Ravi Karandeekar:

Should I buy a 1 BHK Flat for my parents in Playtor at Paud?

2015-01-15T09:08:00.000+05:30

Beware of Your Parents:

Stall of Playtor at Paud in Credai Pune Metro Property Exhibition 2015

"At the CREDAI Pune Metro Property Exhibition 2015, I visited the stall of Playtor Childspaces (www.playtor.in) by Brick Eagle & Sangam Group. At their project Playtor at Paud, I can get a 1 BHK Flat of 275 sq.ft. carpet area for Rs. 9,99,999 + Stamp Duty, Registration, VAT & Service Tax. Ravi Karandeekar, should I buy this flat for my parents?," Shravan asked me.

"Playtor at Paud - for your parents! How old are your parents, Shravan? Playtor is a child centric township. Not senior citizens homes," I asked.

"My father is 60 & mother is 50 year old. I am from a small village in Vidarbha. Last couple of years, because of severe drought in our area, my parents are staying with me at Pimple Saudagar - in a rented flat. I am working in Hinjewadi, but, soon, I am going to USA for post graduation. Before going abroad - I want to buy a flat for my parents. Since, my budget is small - I am considering Playtor at Paud," said Shravan.

"Shravan, you are calling me because you want to know two things - 1) Is it worth booking a flat in Playtor at Paud? 2) Is this project suitable for your parents? Right?," I asked.

"Yes! I want to know whether it is safe to book a flat in Playtor and is it a right project for my parents," said Shravan.

"First let us consider the suitability. Shravan, you are working in IT. You must be earning well. If you were not going to USA, would have you considered this project for yourself?," I asked.

"Certainly, not!," said Shravan.

"Right! Because in that scenario - you would have thought that Playtor is a downmarket project!," I asked.

"Yes, of course - I deserve a better home than this!," said Shravan.

"Then - a home which is not suitable for you - how can it be suitable for your parents? Don't you think that they deserve better?," I asked.

"Yes, they do - but I don't have a big budget!," said Shravan.

"If you believe that your parents deserve a better life - a better home - budget is not a problem! They can continue to stay in your rented flat even after you go to USA. Don't you think that your parents would be more comfortable - more safe & more happy at Pimple Saudagar than Paud?," I said.

"I told them the same - you continue to stay here - I will buy a flat after I come back from USA. But, they are worried - what if I don't come back - or stay for long in USA - so, my parents say - Better buy a flat for us and then go - come back whenever you want - we won't mind - they feel uncomfortable to stay in a rented flat - you know? I forced them to leave our ancestral home in the village and come to stay with me at Pune - they were not at all ready to come," said Shravan.

"If they find it so uncomfortable to stay in a rented flat - after you leave for USA - they can go back to your village! They would be quite well off - in your ancestral home - among your relatives - at your village! Isn't it?," I said.

"But, now, they don't want to go back to the village. They want to settle down in Pune," said Shravan.

"What about you? What do you want?,' I asked.

"What choice do I have? Who am I to say - No. Go back to the village - How can I say so - you know? 10 lakhs is their money - they sold a piece of land for 30 lakhs - gave that money to me to buy a home - in fact - I wanted that money to pay for my post graduation in USA - now, I have decided to take an education loan of 26 lakhs - because of that - like my colleagues - I have to work in USA for 3 - 4 years and come back to Pune - only after I repay the education loan!," said Shravan.

"Are you complaining? Do you think - not giving money for your post graduation is - unfair - injustice?," I asked.

"Yes - initially - I thought so - but, not now - my parents have done so much for me - I don't have a right to keep on demanding from them forever - now, I can take my responsibility - now, I am an adult - not a child - anymore," said Shravan.

"Yes. Now, roles are reversed. You are an adult. But your parent are behaving like a child. They are trying to fulfil their life long fantasy of living in Pune. Better be a strict adult and tell them to go back to your village. Tell them - Pune is no longer a city of pensioners!," I said.

"I told them! But - you know what they said? Don't worry - we can sell last few acres and get 30 lakhs more!," said Shravan.

"Are you really going to USA for post graduation or are you running away from them?," I asked.

"They ask the same question!," said Shravan.

For a few moments - both of us didn't say anything.

"Whatever! By the way, what is your opinion about the project?," breaking the silence Shravan asked.

1 BHK Flat in Playtor Potty Homes at Paud, Pune

"I call this project Playtor Potty Homes at Paud. Yes, it's one of the revolutionary architectural concepts by Hafeez Contractor. Geras also have come up with child centric homes in Kharadi. But Playdor Potty Homes at Paud are the true child centric homes. Because, after giving birth - potty training is the most important responsibility of every parent. This 1 BHK Flat is designed around potty training. That's why toilet is attached to living. So, when the parents are at home - at Playtor Potty Homes at Paud - they can spend most of their time not in front of TV but giving potty training to their child. Though the children are at the center - Hafeez hasn't ignored the adults. In this flat, when the parents will invite their relatives, friends, colleagues no one will ask - "Susu Karne Ki Jagha Dikha Do!," I said.

"Yes! The placement of the toilet is quite odd!! You know? As per Vastu Shastra - placement of a toilet in a home is important for your health & wealth!," said Shravan.

"But, Playtor Potty Homes at Paud are for the children of a lesser God - these are affordable homes - homes for lesser human beings - who bothers about heath or wealth of the people how have less money?," I said.

"What about the builder?," Shravan asked.

"What about the builder - at present the builder has developed only one property - web property - the website - and the builder has proved his marketing & advertising expertise - that's all! People with less property purchasing power are the soft targets of the politicians, builders & scamsters!,' I said.

"Do you mean that it's a risky offer?," asked Shravan.

"Risky? Have you checked whether it has all sanctions & approvals - including environmental clearance?," I asked.

"No!,' said Shravan.

"No? Better go to your parents & ask them - why didn't they send you to school?," I said.

What say you?
What should Shravan do?
1) Should let his parents stay in his rented flat
2) Buy a flat for them at Playtor Potty Homes at Paud
3) Convince them to go back to their village and come to stay with him when he returns from USA
4) Take 30 lakhs from the parents and never come back

And, what about you?

Are your parents behaving like a child?
Are your parents not ready to live rest of their lives in your hometown?
Are your parents insisting on shifting with you in Pune? Are - both of you - okay with it?
Are your parents ready to go to any extent to fulfil their lifelong fantasy of living in Pune?

Please, share your views in the comments!

Ask Ravi Karandeekar:

Should I Buy a 1 BHK at Pimple Saudagar or a 2 BHK at Pirangut?

2014-07-02T15:12:00.000+05:30

Ask Ravi Karandeekar:

Welcome Plaza at Mont Vert Vesta, Urawade, Pirangut, Pune

The other day, Mr. Jayant asked me:
Should I Buy a 1 BHK at Pimple Saudagar or a 2 BHK at Pirangut?

My budget is around 40 Lakhs. I have shortlisted 2 projects.

1) A 1 BHK Flat in G K Developers' Royal Rahatgi at Rahatani - Pimple Saudagar.

2) A 2 BHK Flat in Mont Vert Vesta at Pirangut.

I am confused.
Ravi Karandeekar, please, tell me - What should I do?
Should I go for a 1 BHK at Pipmle Saudagar or a 2 BHK at Pirangut?

1 BHK is not enough for me. Eventually, I will need a 2 BHK Flat.
But Pimple Saudagar is developed & convenient location for us.
Both of us are IT professionals - working in Hinjewadi - living in a rented flat in Pimple Saudagar.

Whereas, Pirangut is not developed and is far away from Hinjewadi.
But - in the same budget - 40 Lakhs - we can get a 2 BHK Flat at Mont Vert Vesta.
Which we will eventually need. Because - we are planning a baby - in the next 2 years. So, we will need a 2 BHK. (We got married 1 & half year ago.)

Ravi, what do you suggest? Pimple Saudagar or Pirangut?

Our combined monthly income income - in hand - is 90,000.

Bank executive told me that I can get 45 - 50 lakh home loan.

But we don't have 20 per cent own contribution - we don't have 10 lakhs - we have only 4 lakhs in our saving account. Actually - it's our emergency fund.

That's why we can't take full loan. We can't buy 50 - 60 lakh rupee property. So - we decided to go for 40 lakh flat.

Of course, 4 lakhs are not enough to book a 40 lakh rupee property. But we can raise 20 per cent own contribution & money for stamp duty, registration charges & VAT.

How?

By breaking fixed deposits & mutual fund investments for retirement. Or we can borrow from our parents. Or get a personal loan.

No. We don't have any ongoing EMI. I purchased a second hand car. Paid in cash.

My wife doesn't have a credit card. Only I have one. But we don't use it. So, no outstanding - overdue - credit card payments.

Why is our budget only 40 lakhs?

We are planning a baby! So, minimum EMI is safer & better.

So, in 40 lakh budget - we have only 2 options.
1) 1 BHK at Pimple Saudagar.
2) 2 BHK at Pirangut.

What should we do? What do you suggest?

Ravi Karandeekar's Advice:

The answer is in your question.

1) Baby is your top priority. Not a flat.

2) You don't have money to buy a home.
You can't use your emergency fund - 4 lakhs in saving account - for the down payment. You can get a home loan but you have no money for the down payment.

Your rational mind - knows all this. But your emotional mind doesn't agree. It is tempting you to take a risk. Go ahead and book a home - at any cost. Your emotional mind is misleading you. That's why you are facing a dilemma - 1 BHK or 2 BHK - Pimple Saudagar or Pirangut.

But the real question is - Am I ready to buy a home?

No. You are not ready to buy a home. Financially & emotionally.

At this point of time - your priority is having a baby.

At this point of time in your life - you invest in your married life - family life. Not in property.

Plan to live in your current rented flat in Pimple Saudagar.
Convenient & developed location for both of you, for your baby and your relatives.
During the pregnancy and after the birth of your baby.

Use your emergency fund - 4 lakhs in the saving account - if required - for the delivery.
Start saving for 20% down payment & other charges. Keeping in mind the rate of inflation.
And buy a home when buying a home becomes your top priority.
And when you are - financially & emotionally - ready to buy a property.
And buy what you deserve and are eligible to own. Buy a 2 BHK Flat.

Your combined income - 90K per month is good. You are financially disciplined. You are a financially responsible person. You manage your money well. You don't use credit card. You are not in debt. You are saving for retirement. You can plan and succeed in saving enough money for owning a home.

And I am sure, you must be loving your wife too. You will not force her to work - at any cost - during the pregnancy & after the birth of your baby.

You will see that your wife has a freedom - financial freedom - to live her life as per her wish - when she is in a family way or has just given a birth to a baby.

Because you are a man. A financially responsible & rational husband.

I haven't told you anything new. These are your thoughts. Your ideas. Your beliefs. Your way of life.
Don't let the pressure of home ownership force you to change the way you prefer to live. Be strong. Be yourself.

From me - you didn't want an answer. You just wanted - confirmation.

Am I right?

What about you?

This is my advice to Jayant.
What say you? Do you agree with me?
Please, share your views in the comments.

If you want to ask me, feel free to call me on 919860044110. First 3 minutes are free! And for more than 3 minutes - pay as you wish - you decide the value of my advice.

Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
- on Video Hangout on Google+
- or on Skype (ravikarandeekar) .

For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

Ravindra Karandeekar,
Bank of Maharashtra.
Savings A/c no- 20047674794.
Branch- Bajirao Road Pune MICR Code 411014010.
IFSC- MAHB0000001

Wake Up, Chief Minister of Maharashtra! It's Your Duty to Protect the Flat Buyers in Hubtown!!

2014-03-12T14:45:00.000+05:30

Helping 3,000+ Hubtown Flat Buyers
to Takeover & Complete the Projects
is the Duty of State Government
- says Mr. Vijay Kumbhar, RTI Activist!

What Can Flat Buyers Do When a Builder Does Not Complete a Project?

In 2009, Hubtown Ltd. launched 3 affordable housing projects for urban middle class. Ackruti Hubtown Countrywoods Kondhwa in Pune. Hubtown Greenwoods at Thane. And, Hubtown Gardenia at Mira Road in Mumbai.

Now, it's 2014, even 5 years after the launch, Hubtown Ltd. hasn't completed these 3 projects.

One & half year ago, 32 Flat buyers in Ackruti Hubtown Countrywoods had gone to Consumer Court for compensation for delayed possession. In their flat agreement - possession was promised in 2010 - 2012. On this 15th March 2014, there is a final hearing of their case.

Hundreds of flat buyers in Ackruti Hubtown Gardenia at Mira Road, a couple of months ago, organised protest march & demonstration for possession of their flats. "I will commit suicide if Hubtown doesn't give possession of my flat" - a lady flat buyer in Hubtown Gardenia had announced.

Besides, demonstration - protest & consumer court, these 3000+ flat buyers in 3 Hubtown projects can file criminal complaint against Hubtown Ltd.,.

LIke the flat buyers in DLF Park Palace & Belaire, these 3,000+ Hubtown flat buyers can go to Competition Commission of India (www.cci.gov.in).

What about Complete & True Ownership of a Flat?

(To View More Photos - Put Your Cursor Over the Current Photo)

But, what about the completion of these 3 Hubtown projects?

Penalising the builder and getting compensation is not enough.

Even getting possession of your flat is just a first step. Not the end.

These 3,000+ flat buyers should become the true owners of their properties.

These 3,000+ flat buyers have paid to Hubtown for the true ownership of their flats.

To become a true owner Hubtown Ltd. must complete the project & handover the ownership to the Co-Op Housing Society of the flat buyers.

These 3,000+ flat buyers can get true value of the money they have paid for their flats - only when these 3 projects are hundred percent complete with completion & occupancy certificate, all amenities & essential basic infrastructural services are operational.

As per the current market trend, Hubtown Ltd. will do the conveyance deed and handover the ownership of the buildings & the plot of land of the entire project to these 3,000+ flat buyers only when the entire project is complete.

It means that, when the builder is not in a position to complete the project - flat buyers can not become true owners of their flats. They don't get their money's worth.

Flat Buyers, Takeover & Complete the Project on Your Own!

)

"But what can property buyers do to complete the project?," I asked Mr. Kedar Vanjape of Kedar Vanjape Developers Pvt. Ltd.

"When flat buyers sign flat agreement they become deemed owners of the project. So, if the builder is not in a position to complete the project - it's flat buyers' right to takeover the project and complete it on their own - with the help of the banks which have provided home loans to them!," Kedar said.

Banks are not only the stake holders!

Government of Maharashtra is also a party. Government of Maharashtra has collected stamp duty, registration charges & VAT from these 3,000+ flat buyers!

Government of the People for the People, by the People!

)

"Isn't it the duty of Government of Maharashtra to help these flat buyers to become true owners of these projects?," I asked Mr. Vijay Kumbhar, RTI Activist.

"Yes! It is the duty of State Government to protect citizens' rights!," Mr. Kumbhar said.

"What should these 3,000+ flat buyers do to get help from Maharashtra Government?," I asked.

"Ideally, Government should intervene on it's own. Because protecting citizens' rights is Government's responsibility. But, when the Government is blind & deaf - when it doesn't acts on it's own - unfortunately, citizens have to become proactive and remind the government it's duties," said Mr. Vijay Kumbhar.

"Proactive means what? Demonstration - protest march - morcha - uposhan - hunger strike - satyagraha - atmadahan - self immolation - setting oneself on fire - what should these 3,000+ flat buyers do?," I asked.

"I said - become proactive. I didn't say 'harm yourself'! I said - remind the government it's duties. I didn't say 'destroy yourself'! Are you aware that you - the citizens - are the owners of this country? Not the elected representative - who form the government - but you - the citizens - who elect this Government - are the owners of this country?," Mr. Kumbhar said.

"True! But would the government listen?," I asked.

"What else can government do? If you tell in a proper way - government must listen and act. Government can't avoid it's constitutional responsibilities & duties," said Mr. Kumbhar.

"What do you mean by proper way?," I asked.

"The right person in the government should realize that if he doesn't do what you are asking for - he would be in trouble!," Mr. Kumbhar said and added that RTI could be one way to remind the right person in the government about his duties & responsibilities.

Not only that! Mr. Vijay Kumbhar offered his guidance to these 3,000+ flat buyers of Hubtown.

Shri Prithviraj Chavan - The Protector of Home Buyers

)

After talking to Mr. Vijay Kumbhar, who has single-handedly reminded Mr. Manohar Joshi, then chief minister of Maharashtra, about his duties & responsibilities, I was convinced that Government of Maharashtra has no option but to help these 3,000+ flat buyers to takeover & complete the projects on their own.

In fact, principally, Government of Maharashtra has already accepted that when the builder is not in a position to complete the project, the flat buyers have a right to takeover & complete it on their own.

The Maharashtra Housing (Regulation and Development) Bill 2012 - which was presented in Maharashtra Assembly had an important clause about the abandoned projects. As per the news in Indian Express, the clause was -

If the housing regulator is satisfied that the builder is unable to complete a project, it can pass an order forming a legal entity comprising 60 per cent of the buyers, appointing this entity as an escrow agent for taking over possession of the building, directing the transfer of the retained flats in the name of the escrow agent within a prescribed period and authorising the escrow agent to appoint contractors, consultants and other agencies required to complete the construction and obtain occupation certificate.

Now, The President of India has given his assent to housing bill 2012 and Maharashtra has become first state in India which got a housing regulator. In the second half of 2014, Government of Maharashtra will establish the housing regulatory authority.

At this point of time, it is not clear whether this Housing Regulatory Authority can do anything for these 3,000+ flat buyers in 3 incomplete Hubtown projects - launched in 2009.

But, the person who was instrumental in formulation of Maharashtra Housing (Regulation & Development) Bill 2012 can do a lot. Because this person is non other than Chief Minister of Maharashtra - Shri. Prithviraj Chavan - whose portfolio includes - Urban Development, Housing, Law & Judiciary!

In the letter requesting Union Minister for Housing to get president's assent to Maharashtra Housing Bill, Mr. Prithviraj Chavan has written -

The Bill will go a long way in safeguarding the interests of home buyers and ensuring transparency in property deals.

The biggest benefit of the Bill is that home buyers and investors can lodge complaints against builders (in cases of violations and non-compliance of agreement) to a regulatory authority, which will study the issue and pass an order within three months of the complaint being lodged.

At this point of time, unfortunately, Housing Regulatory Authority & Housing Appellate Tribunal is not yet formed. So what? The Chief Minister of Maharashtra will not refuse to protect these 3,000+ flat buyers in 3 Hubtown projects.

After all, the day Mr. Prithviraj Chavan became Chief Minister of Maharashtra, he has done his best to break powerful builder politician nexus (more powerful than Sugar Lobby in Maharashtra!).

In the last four years, CM of Maharashtra has tried his best to free home buyers from the clutches of builders. It was he who announced that builder's NOC is not required while selling the flat.

CM also started the drive of deemed conveyance in Maharashtra. Because of this drive, by December 2014, thousands of cooperative housing societies can become owners of the land & buildings in their societies. Congratulating Chief Minister for this initiative, Mr. Sanjay Nirupam has said, "‘This landmark decision will go a long way in protecting the interest of the common man against the powerful builder lobby"

By alerting the Development Rules (DC Rules), Chief Minister has curtailed the corrupt practices of Mumbai builders. These builders were using "flower beds, voids, terraces and lily ponds" to loot the home buyers & to dupe the State & Municipal governments.

CM Of Maharashtra changed the development rules in all municipal corporations in the state and made it compulsory for the builders to construct 20 per cent smaller flats (300 to 500 sq.ft.) for economically weaker section - when the plot is 2,000 square meter or larger in size. Mr. Chavan said that this decision was taken to ensure that economically backward section too can get an opportunity to buy a home in upmarket areas in Pune & Mumbai.

Mr. Prithviraj Chavan's tough stand against 10 FSI offered to builders for rehabilitating slum dwellers in Kothrud & Kalyani Nagar in Pune became a point of friction between the Congress and its alliance partner, Nationalist Congress Party (NCP).

According to India Today, from day one, Mr. Chief Minister of Maharashtra has been going against the unholy nexus of builders, politicians & bureaucrats and trying to help the home buyers by regulating real estate business.

And, now, in the year of general elections, these 3,000+ flat buyers in Hubtown project are giving an opportunity to Shri Prithviraj Chavan, to take a solid step and leave a permanent mark as the protector of upwardly mobile young first time urban middle class home buyers in Maharashtra!

What can 3,000 flat buyers of Ackruti Hubtown do?

2014-02-26T21:09:00.000+05:30

Flat buyers should takeover the project and
complete it on their own!
- Suggests Mr. Kedar Vanjape,
of Kedar Vanjape Developers Pvt. Ltd. (www.kvdl.in)

Delayed Possession of Ackruti Hubtown Countrywoods, Kondhwa, Pune:

32 Brave flat buyers in Ackruti Hubtown Countrywoods Kondhwa have gone to the consumer court against the builder Ackruti Jay Developers. In their prayer to the court they are demanding compensation for delayed possession.

These flat buyers had booked flats in 2009 / 2010. Possession date in their agreement was 2010 / 2011. But, they haven't yet got possession of their flats.

Same is the case of Hubtown Ltd's two other projects. Ackruti Hubtown Greenwoods in Thane. Ackruti Hubtown Gardenia in Mira Road. These two projects are also delayed by 4 - 5 years.

Recently, I visited the site of Ackruti Hubtown Countrywoods Kondhwa. Looking at the construction status of the project, I realized that the issue is not only about delayed possession. Question is about the completion of the project.

Let us assume that these 32 flat buyers will get the compensation for delayed possession. But is it enough?

How can the flat buyers live comfortably if the builder cannot complete the entire 15 acre project - Ackruti Hubtown Countrywoods?

How can the flat buyers live comfortably if the builder cannot provide all essential services?

How can the flat buyers get all promised amenities if the builder does not complete Ackruti Hubtown Countrywoods?

How can the flat buyers get value for their money if the entire 15 acre township is not complete?

And this is not only about 1,200 flat buyers in Ackruti Hubtown Countrywoods Kondhwa.

This is about 1,000 flat buyers in Ackruti Hubtown Greenwoods in Thane.

This is about 1,000 flat buyers in Ackruti Hubtown Gardenia in Mira Road.

It means this is about nearly 3,000 + flat buyers in 3 delayed projects of Hubtown Ltd.

Are these 3,000 + flat buyers left to the mercy of Hubtown Ltd?

For how many more years these 3,000 + flat buyers will be forced to wait for completion of these 3 projects?

What is the point in waiting when it's clear that Hubtown Ltd is incapable of completing these 3 projects?

Can these 3,000 + Hubtown property buyers do anything to complete their projects?

I asked myself.

Maharashtra Housing (Regulation and Development) Act, 2012

What can the property buyers do when the builder delays the project by a couple of years and may not be able to complete it for a few more months?

Without mentioning Ackruti Hubtown Countrywoods & Hubtown Ltd. BOM:532799 (www.hubtown.co.in), I started exploring the solution.

"Yes, something can be done - after Government of Maharashtra starts implementing 'Maharashtra Housing (Regulation and Development) Act, 2012' - establishes Real Estate Regulator & Housing Appellate Tribunal - something can be done," some said.

"Means approximately when?," I asked.

"Recently, President of India has given assent to the act, now - may be - around June 2014 - or by the end of 2014 - State Government - may - start implementing the Act & - may - set up - Housing Regulator & Appellate Tribunal, - may be - then," someone said.

"That's great! How will the Housing Regulator & Appellate Tribunal help these property buyers?, " I asked.

"If the housing regulator is satisfied that the builder is unable to complete a project, the regulator can let the property buyers come together and appoint contractors and consultants to complete construction of the project," someone said.

"That's great! Would the Housing Regulator & Appellate Tribunal applicable to the projects launched in 2009?," I asked.

"Not sure....not yet clear....depends upon what would be decided when the state government starts implementing the act & sets up the Regulator..," someone said.

"Thanks - not may be - certainly, thanks a lot for the info," I said to Mr. Someone May Be.

Flat Buyers Should Takeover the Delayed Project & Complete It On Their Own - Mr. Kedar Vanjape:

Actually, I had gone to see Mr. Kedar Vanjape to know about his upcoming Nisarg Srishti - 110 Fully Sanctioned N A Bungalow Plots Project near Shirwal on Mumbai Bangalore Highway.

But instead of that I asked him, "Kedar saheb, what can property buyers do when builder delays project by a couple of years and may not be able to complete it - for a few more months?"

"Flat buyers should takeover the project & complete it on their own!," Mr. Kedar said.

"Is it possible?," I said.

"Yes. It's unique solution. But it's practical solution. It's simple solution," Mr. Kedar said.

"You say as if it's easy!," I said.

"Yes. It's easy. See, in real estate business - constructing & completing project is an easy task - procuring land, designing right kind of a floor plan, getting sanctions & approvals are tough tasks, " Mr. Kedar said.

"Wait...wait let me video record you - what you say will save lives of thousands of families - they must hear you. Can I?," I said.

Mr. Kedar gave his consent and let me video record him. Of course, Mr. Kedar Vanjape didn't know that he was talking to 3,000 flat buyers in 3 Hubtown Ltd projects. Mr. Kedar was just thinking out of box. Here is a summery of what Mr. Kedar Vanjape said in Marathi -

When you sign a flat agreement - under the 'Force Majeure' - you have given a liberty to a builder to delay possession - in reasonable limits.

But when the delay is beyond reasonable limits - the flat buyers have a right to takeover the project and complete it on their own.

There is no law which prevents them from doing this.

Because of the agreement, the flat buyers are already deemed owners of the project. If the builder has completed the project - he would have formed the Co-op Housing Society and would have done the conveyance - and would have handed over the ownership to the flat buyers.

If a builder is unable to complete the project - who can prevents the flat buyers from taking over the project to complete it?

In fact, the financial institutions & banks who have given home loans - should support the flat buyers to takeover the project & complete it. Completion of the project is in the interest of the banks. By helping flat buyers get the possession of their flats - actually, banks are helping themselves. So, helping the property buyers is bank's duty.

Only compensation is not enough - consumer court should see that - the flat buyers get the possession of their flats. Because the flat buyer wants a home - so, all flat buyers should collectively request the consumer court to let them takeover the project and complete it on their own and occupy the homes they have paid for.

Why not ask Chief Minister of Maharashtra for help? It's the responsibility of the state government to help taxpaying citizens. Government has a machinery to assess the seriousness of the situation and power to take a decision.

This is the right time . We are living in a democratic country. Elections are due. How can government afford to say no to thousands of flat buyers? The government has to protect the interest of the citizens. And prove that this government is of the people - by the people - for the people.

Point is -flat owners can takeover the project - banks, consumer courts, government will help them to takeover the project.

Problem is the flat buyers don't come together and demand. Rope in banks, consumer court, government to get builder's consent. And yes, to recover their outstanding bill payments - the sub-contractors - vendors - agencies will also join the flat buyers!

After takeover, under the supervision of project management consultants - flat buyers can complete the project.

After all what builder does? Builder works as facilitator. He gets the things done.

The same agencies will work for the project management consultant appointed by the flat owners to complete the project..

Instead of paying to the builder - banks will pay to the vendors & subcontractors.

And after possession, banks can start collecting EMI from the flat owners - for the next 20 - 25 - 30 years.

Point is flat buyers should takeover the project and complete it on their own.

It's easy.

It's a unique but practical solution. Flat buyers should go for it.

What say you, flat buyers of Hubtown Ltd.?

Dear 3,000 flat buyers in Ackruti Hubtown Countrywoods Kondhwa, Ackruti Hubtown Greenwoods Thane, & Ackruti Hubtown Gardenia Mira Road, would you like to takeover and complete your projects?

Kedar's just perfect solution will give you your just perfect homes.

What say you? Please, share your views in the comments.

Feel free to call me:

Pune Property Exhibitions - Mass Manipulation of Home Buyers

2013-12-19T12:10:00.000+05:30

Why Does Every Local Newspaper Organize Pune Property Exhibitions?

There were two Pune property exhibitions last weekend. One - Sakal Vastu. Two - Times Property Showcase. Organized by two leading newspapers in Pune. Sakal & The Times of India.

Branding - is the intention behind organizing property exhibitions - claim both the publications.

Creating platform for home buyers to collect information about all housing projects in Pune - is the best way to win the minds of newspaper readers - claim both the publications.

If organizing property exhibitions is basically a branding and a public relations exercise of these newspapers - then - why does every builder pay a couple of lakh rupees to participate?

"Because, it's a win win deal - newspaper gets the credit for helping it's readers and participating builder gets an opportunity to interact with the home buyers!," one builder told me.

"Property exhibition is not for profit - builders contribute only to share the expenses," one of the organizers told me.

"So the property exhibitions are all about sharing information! Am I right?," I said.

"Yes! In this age of information, consumer is the king - and the king takes informed decision - property exhibition makes it possible," said the organizer and the builder.

Property Exhibition is All about Exploitation of Pune Builders:

I called Mr. Satinder Arora of Skyline Expositions. In 1992, Satinder pioneered & popularized property exhibitions in Pune real estate market. At that point of time, I was in Pune real estate advertising.

For Satinder, property exhibition was the most cost effective tool to market property. His focus was not on sharing information but on selling property - conversion - bookings.

Today, Satinder runs www.PuneResaleProperty.Com - One Stop Shop of Resale Properties in Pune.

"What is this, Satinder? Now a days, every alternate weekend - there are property exhibitions in Pune - but you are not organizing any. Why?," I asked him.

"Because now, property exhibitions are not about property," said Satinder.

"Then - about what?," I asked.

"Property exhibitions are about ad revenue! Newspapers way of extracting maximum ad revenue from the builders. Newspapers realized that I was eating their ad revenue. Instead of spending on newspaper advertising - builders were spending on my result oriented property exhibitions - to kill me - the newspapers themselves started organizing the property exhibitions," said Satinder.

"But you were result oriented - your focus was on booking - why did the builders ditch you?," I asked.

"Which builder can say 'NO' to the newspaper? Newspapers afford to advertise and write promotional news stories about their property exhibitions in their own publications. Newspapers can design "Ad Root" - a stall in proportion to the size of an ad in their newspaper. How can I compete with newspapers on these grounds? How can a builder afford 'Not to Participate' in such a heavily publicized newspaper event?," said Satinder.

"But, what about the 'results'?," I asked.

"No 'results'. Only 'Presence'. Only distribution of brochures. No interaction - only 'show off'! In the last real estate boom - builders have earned a lot - easy come - easy go - to the newspapers!," said Satinder.

"But, Satinder, branding & sharing information also matters!," I said.

"Yes! To increase advertising revenue substantially - newspapers have roped in advertising agencies to sell the idea of 'brand building' to the builders - at the same time - these newspapers have also convinced the property buyers that - a builder who spends more on newspaper advertising - has a big stall in the property exhibition - is a big real estate brand!," said Satinder.

"It means that - now - property exhibition is not a cost effective marketing tool, anymore - Satinder, this will kill the small builders - small builders can't afford newspaper advertising - small builders can't afford to participate in property exhibitions - means the small builders can't sell - can not survive - the small builders will be wiped out!," I said.

"That's the plan! Pay the newspapers or vanish!!," said Satinder.

How Politicians, Builders & Newspapers Nexus Manipulates Pune Property Buyers:

Yes! I completely agree with Satinder. Today, real estate marketing has become a con-game - a swindle in which the swindler, after gaining the victim's confidence, robs the victim by cheating.

In this con-game - the newspapers play important role of gaining the confidence of home buyers and of persuading the home buyers to buy worthless properties.

The newspapers play this important role mainly because these newspapers themselves are builders. Directly or indirectly these newspapers have invested in big real estate projects in Pune.

At the same time, these newspapers are politicians too. Small & big, local corporators to union ministers, all types of politicians are the 'owners', 'relatives' or 'friends' of these newspapers.

The politician body takes care of manipulating development rules, regulations & plans.

The builder body works as a foot soldier and runs the shop.

Whereas, a newspaper front pretends to be saintly, wins home buyers' confidence - psychologically manipulates home buyers and makes them easy kill.

All 365 days of the year these newspapers brainwash & manipulate individual Pune home buyer's mind. This daily manipulation is silent and hidden - it works like 'slow poisoning'. It comes out in open only when these newspapers organize property exhibitions.

The newspapers organize property exhibitions for three reasons:
1 - To test how much they have succeeded in manipulating individual property buyer's mind.
2 - To strengthen the individual manipulated mind by 'group therapy'.
3 - The property exhibitions provides an opportunity for the newspapers to manipulate those who are not newspapers' regular readers but are potential property buyers.

If you look at the ads & news stories about property exhibition - you can clearly see that the intention behind manipulations is:
1) Securing supply of interest free funds to the builders.
2) Maximizing profits by justifying irrational property prices.

To achieve the goals of fund flow & exorbitant profits - the newspapers erase - delete - unfavorable ideas - and replace & plant certain favorable - profitable 'ideas' and 'beliefs' in thousands of home buyers' minds - at one go - openly & shamelessly.

1) A "Home" is a dream - newspapers erase the idea that अन्न - वस्त्र - निवारा - रोटी - कपडा - मकान are basic needs of a human being and it's government's duty to fulfill the necessities of it's citizens.

Newspapers see that we do not raise our voice and ask - If the government is unable to fulfill the basic needs of it's citizens, then - what is the point in forming a government and creating a nation?

2) A property buyer is a 'consumer' - Property exhibitions are organized as if they are malls - bazaars - of homes and visitors are shoppers. You are treated as a shopper - as a consumer - as if you are buying a ready-to-move-in homes - as if you are shopping a ready made shirt or shoes in mall.

This is done to make you forget that you are a "Paymaster" and a builder is "Service Provider".

When you forget that you are a "Paymaster" - instead of dictating your terms & conditions - you accept the builder's terms and conditions - which are never in your favor and you become a builder's slave.

3) Market Price of Property - The newspapers use property exhibitions to prove that "Market Price of Property" - the most popular lie in real estate market - is the ultimate truth.

The newspapers also brainwash the property buyers to believe that "Market Price of Property" always keeps on going up - keeps on increasing and never comes down. Only because "Market Price of Property" justifies the irrational property rates and easily maximizes the builder's profits.

Ever increasing "Market Price of Property" generates another false idea - "Property Appreciation" - increasing personal worth - and temptation to earn profits - passive income - by selling the property.

When the home buyers accept these false ideas - Market Price of Property & Property Appreciation - they start believing that the builders main business is to make them wealthy!

How can you can ask probing questions to someone whose business is to make you rich?

You forget that you are a Paymaster and the builder is a service provider. You are actually placing an order to construct a home for your family. For this service you pay 3.09 per cent service tax & 1 per cent VAT to the state & central government. You stop treating builder as vendor and do not ask for the bifurcation of his asking price. You do not ask the builder what is the land price - what is the construction cost - what is the administration expenses - what are builder's fees for providing construction services.

In the crowd of property exhibition - you simply forget - who you are and what are your rights. Your rational mind stops working. You become victime of mass manipulation by the newspapers.

However, some visitor manages to survive the mass manipulation and asks - why doesn't government do something to make housing affordable for a common man?

Poor fellow, doesn't know that 'politicians - builders - newspaper owners nexus' is the government!

Feel free to call me:

What happens if a bank takes over a housing project?

2013-09-09T22:24:00.000+05:30

The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.

Gera's Trinity Towers Kharadi - Enjoy ADF Advantage of Minimum Rs. 3.3 Lakh Booking Amount

Last month, the State Bank of India took over a housing project in Kolkata because the developer had defaulted on repayment of dues to the tune of Rs 176 crore. The Teen Kanya project was promoted by the Bengal Shelter Housing Development, a joint venture in which the state housing board has 49% stake. Therefore, its repossession by the SBI has come as a shock for the 400-odd families that have invested in the project.

Most of the buyers had put money in the project because the state housing board was involved. The project is only half complete and the investors are now contemplating legal action to safeguard their investments.

The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.

What are the options available to a buyer if a lender repossesses a property due to default in payment? Legal experts and housing professionals contend that the lender does have first right over the project. Let us look at the issues involved. Read More

Feel free to call me:

How to Recover Money Lost in Proposed N A Plots

2013-05-11T18:13:00.000+05:30

Ponzi Schemes in Pune:

The other day I attended a meeting of investors duped by Nitin Rajaram Narke of Blue Chip Corporation / Investment. Frustrated investors had invited Mr. Vijay Sagar, Ms. Seema Bhakare & Ms. Veena Dixit of Grahak Margadarshan Kendra - Consumer Guidance Center - of Akhil Bhartiya Grahak Panchayat Pune to guide them to recover money lost in the ponzi scheme.

Pretending that he earns huge profits in the share market, Nitin Narke lured thousands of naive investors in Pune. He promised them to give 10 per cent returns per month - in cash - if they invest in the share market through him. Tempted to earn easy money every month, thousands of investors gave thousands of crores to Narke. Only against the security of a postdated cheque.

For the first few months, Narke went on giving 10 per cent returns. Those who received cash, brought in their friends, relatives, colleagues, and coworkers. However, suddenly Narke stopped giving monthly returns. Investors got upset. They deposited his security cheques in their banks. Narke's cheques bounced. Investors panicked. Ransacked his office. Lodged police complaint. Police caught him at his office in Magarpatta. But Narke got out on bail. Started running his business as if nothing has happened.

Helpless investors joined hands. Started meeting regularly. Went on trying all possible ways to recover their money. Even approached SEBI. Which refused to interfere in the matter conducted under the name of a different company. Investors had lost face. Some lost faith and committed suicide. Others went on living. Avoiding to face their near & dear ones. Looking at Nitin Narke moving around in his fancy SUV.

"How can someone believe in 10 per cent per month returns?," I asked Mr. Vijay Sagar.

"Same way you believe in Proposed N A Plots," said Mr. Vijay Sagar.

"Isn't it financially & practically impossible to get such high returns in share market?," I asked.

"Still you invest in property - as if the builder's real business is to make you rich," said Mr. Sagar.

"But isn't it risky to give your hard earned money against the postdated cheque?," I asked.

"Are the clauses in the flat agreement to protect you or the builder?," said Sagar and added that,"At this point of time, there is no point in talking about ponzi scheme. Let us focus on how to recover money lost in ponzi scheme"

The first step is, to collect data of all duped investors. Then let us form a task force to lead the campaign. Mr. Sagar went on explaining the strategy to recover money. And I realized why Vijay Sagar invited me for this meeting. Scams may be different but the ways to recover your lost money are the same. Today it is about investing in share market. Tomorrow it will be about investing in proposed N A Plot!

Yesterday, I read Mr. Vijay Kumbhar's blog on chit fund scams. Mr. Kumbhar has held government agencies responsible for these ponzi schemes. When I talked to Mr. Kumbhar about 'Proposed N A Plots Schemes in & around Pune', he said that the government agencies' negligence becomes protection for those who sell agriculture land to investors. Naive investors don't realize that it's a "scam". Not an investment offer!

"Government agencies negligence or reluctance to stop - is taken as recognition - and investors believe that at some point of time this agricultural land will be converted to Non Agriculture - N A. Not only that - the land developers announce that - soon - the government is going to change the present agriculture zone into residential zone - still the government agencies keep mum! Now, tell me, who is responsible for these Proposed N A Plots Scams?," said Mr. Kumbhar.

"OK. Let us assume that from tomorrow government agencies stop ignoring Proposed N A Plots Schemes. Then what will happen?," I asked.

"The court will cancel all 'documents' of Proposed N A Plots Schemes - because -
1 - In Maharashtra, only a farmer can buy agriculture land.
2 - You can not divide agriculture land into small portions - pieces - into 1,000 - 2,000 - 3,000 sq.ft. plots!," said Mr. Kumbhar.

"And - as predicted by the developer - let us assume - down the line - the zone becomes residential and land gets N A Order - then what will happen?," I asked.

"Then 2 things can happen.
1 - the original land owner will bring stay order on the scheme from the court - alleging that the developer has committed some fraud - the documents were forged or something like that - it happens all the time - we read these news items every day.
2 - at gun point - the developer will force all investors to surrender their plots - of course, against non negotiable - fixed compensation - to some builder - that's how the land was procured for the schemes in Wakad, Baner & Balewadi - we all know!," said Mr. Kumbhar.

"It means that - from today itself - the investors should start considering - how to recover money lost in proposed N A Plots schemes!," I said.

What say you?
Are you going to wait till you are officially duped or
trying to get your money back today?
Please, share your plan in the comments.

Whatever may be your decision, please, save this contact information now -

Grahak Margadarshan Kendra
(Free Consumer Guidance Center)
Akhil Bhartiya Grahak Panchayat Pune

Vedshastrotejak Sabha,
opposite Hotel Kalpana and Hotel Vishwa,
near Sarasbaug, Pune 411 030.

Monday & Wednesday
1730 to 1930

Advisers:

Vilas Lele - 9823132172

Seema Bhakre - 9860368123

Vijay Sagar - 9422502315

Thaksen Pore - 9850525276

Veena Dixit - 9819660991

Srikant Joshi - 9850059020

View Grahak Margadarshan Kendra (Free Consumer Guidance Center) Akhil Bhartiya Grahak Panchayat Pune in a larger map

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Maharashtra Housing (Regulation and Development) Act, 2012

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Helping 3,000+ Hubtown Flat Buyers
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is the Duty of State Government
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Flat buyers should takeover the project and
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- Suggests Mr. Kedar Vanjape,
of Kedar Vanjape Developers Pvt. Ltd. (www.kvdl.in)

Grahak Margadarshan Kendra
(Free Consumer Guidance Center)
Akhil Bhartiya Grahak Panchayat Pune