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Peace and Prosperity by Real Value in Tharamani, Chennai

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Peace and Prosperity by Real Value in Tharamani, Chennai

Last updated: December 26 2018
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  • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

    Guys, looks like, Real Value is in real trouble.

    Today I visited Padmalaya, after seeing the ad last week.

    Except the marketing office, the construction site looks deserted, no work done in recent week. No Crane, no watering of concrete.

    I have also waited too long.

    Going to ask for refund, even I lose the Rs.25K.

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    • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

      Refer a buyer and earn 50,000 - In their site!!!!

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      • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

        Myth revealed

        Originally posted by maverick007 View Post
        There is nothing alarming in the advert per se.

        It is a routine practice for many builders to mortgage the land and if you are buying a unit that falls under the survey no, you need an NOC before loan disbursement can happen and money should go to the escrow. This ad shows the mistrust FC has on RVP and nothing more.

        VGN, Akshaya and many others do mortgaging of the land under development.
        I did not see in other projects loaner releasing ad alarming buyers. It means Loaner is concerned about Real Value and their financial ability to repay loan. Is it not alarming to buyers?

        For Mavaraikar it is routine and nothing alarming.

        It should be alarming and non-routine for an ordinary buyer. May be not alarming and routine for selling agents as their business is to sell for commission as per Post #712. Myth revealed.

        Expect Mavu and Sombu jointly occupy further few posts in this thread.
        Last edited April 8 2015, 06:35 AM.

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        • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

          The mention of ESCROW account means that there is a dispute between the concerned parties and till the dispute is resolved, all the money concerning the project will be kept in the ESCROW account and neither party will have access to that fund.

          Real Value has borrowed from different companies in a big way.

          Real Values owes

          Capital First Limited : Rs.60 crores
          State Bank of India : Rs 34.2 crores
          Dewan Housing Fin : Rs. 35 crores
          ICICI Bank : Rs. 6 crores.

          P&P is a joint venture with ASK Financials and ASK Financials has invested Rs. 50 crores.

          With so much in debt, Real Value is really limping. We don't know, when it will go down.
          Last edited April 8 2015, 12:21 PM.

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          • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

            Originally posted by RajTamil
            The mention of ESCROW account means that there is a dispute between the concerned parties and till the dispute is resolved, all the money concerning the project will be kept in the ESCROW account and neither party will have access to that fund.
            No. Escrow does not mean dispute - escrow is an arrangement which is part of the contract both parties agree to. VGN Fairmont raised Rs 440 crores via NCD (Non-Convertible Debenture) and they have mortgaged the land (Guindy). NCD issue talks about how the buyers payment are to be routed (escrow). Lender wants to make sure that the money raised for the project does not get used elsewhere and he has the first right for the payment.

            Above is not limited to VGN and many leading names in Chennai, Bangalore, and Gurgaon does that.

            Capital is the most precious resource for any builder - all they have is the scale, brand, execution skills. If a builder A gets in to JV, he needs money to get the project off the ground. Once the construction progresses, money will come if it is all booked and in stages. It is financially smart move for a builder to mortgage the land portion of his for the working capital needs. Key risk is in booking and project sales. If a builder has a brand and track record to take that risk, there is no capital needed for any project and they can do many projects and each can fund itself. This is what I meant as routine in my earlier post - it is no different than a business pledging the receivables for working capital.

            Just the usage of the above practice does not make a builder a bad one. RVP may be in trouble for more reasons which is still possible.
            Last edited April 8 2015, 01:23 PM.

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            • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

              Originally posted by VijaySri
              I did not see in other projects loaner releasing ad alarming buyers. It means Loaner is concerned about Real Value and their financial ability to repay loan. Is it not alarming to buyers?
              You lack maturity in comprehending what is being said in the post.

              Expect Mavu and Sombu jointly occupy further few posts in this thread.
              Your choice of words above shows the class of upbringing and level of education you may have had - it may be late now. Never too late - educate yourself, read #715 before you jump in and rant.
              Last edited April 8 2015, 02:39 PM.

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              • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

                Originally posted by RajTamil View Post
                The mention of ESCROW account means that there is a dispute between the concerned parties and till the dispute is resolved, all the money concerning the project will be kept in the ESCROW account and neither party will have access to that fund.

                Real Value has borrowed from different companies in a big way.

                Real Values owes

                Capital First Limited : Rs.60 crores
                State Bank of India : Rs 34.2 crores
                Dewan Housing Fin : Rs. 35 crores
                ICICI Bank : Rs. 6 crores.

                P&P is a joint venture with ASK Financials and ASK Financials has invested Rs. 50 crores.

                With so much in debt, Real Value is really limping. We don't know, when it will go down.
                Hi Raj, amazing you know this level of information, very useful.

                Have a doubt. Let us say an individual has paid an advance to book a flat. He now ants to cancel. What priority does he have compared to other parties like ASK for getting back the booking advance. If the promoter goes bust, is there any legal way the individual investor can have a claim on the land so that if the land were to be sold, the individual investors get the money back first before other creditors are paid?
                Last edited April 8 2015, 04:21 PM.

                Comment


                • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

                  Myth again revealed

                  Originally posted by maverick007 View Post
                  There is nothing alarming in the advert per se.

                  It is a routine practice for many builders to mortgage the land and if you are buying a unit that falls under the survey no, you need an NOC before loan disbursement can happen and money should go to the escrow. This ad shows the mistrust FC has on RVP and nothing more.

                  VGN, Akshaya and many others do mortgaging of the land under development.
                  Originally posted by Vijaysri View Post
                  I did not see in other projects loaner releasing ad alarming buyers. It means Loaner is concerned about Real Value and their financial ability to repay loan. Is it not alarming to buyers?

                  For Mavaraikar it is routine and nothing alarming.

                  It should be alarming and non-routine for an ordinary buyer. May be not alarming and routine for selling agents as their business is to sell for commission as per Post #712. Myth revealed.

                  Expect Mavu and Sombu jointly occupy further few posts in this thread.
                  P&P was launched 2 years before and still under launch, there are many buyers who are bleeding after paying their hard earned money. Suddenly lender releasing a public ad cautioning buyers on NOC/payment to escrow account. This is the background. To understand the seriousness of the situation do you require a degree from Harvard?

                  You don't have common sense to match both and look through the issue, but you term it as NOT alarming and routine. This is as good as you support this project which is termed as selling pitch. Don't you have concern for buyers who got trapped? Are you a saddest?

                  I doubt you have brain or rarely use it, got camped? Rust it out man.

                  Even if you do not have concern for the trapped buyers, better shut your mouth and don't do your sales pitch.
                  Last edited April 8 2015, 05:16 PM.

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                  • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

                    Though mortgage of land and diverting payments to escrow is normal and rampant in real estate industry, not every lending deal gets publicized as an ad specifically addressing buyers on how to make payments.

                    Real value is really limping, and the ad serves an caution, rather than a normal practice.

                    Comment


                    • Re : Peace and Prosperity by Real Value in Tharamani, Chennai

                      Originally posted by VijaySri
                      Suddenly lender releasing a public ad cautioning buyers on NOC/payment to escrow account. This is the background.
                      I already said that the ad shows the distrust between the builder and the lender in the very first post.

                      But, you freaked out seeing the ad, asking how many buyers are trapped as though there was a scam - your dumb mind thought that the escrow/NOC itself was a big revelation (which is a routine) and even ascribed that as a reason for long delay. That is the nonsense. I am surprised that you can even spell H-a-r-v-a-r-d for your upbringing.

                      You know nothing about what is really happening simply raising an alarm/panic already concluding that the buyers are trapped. You can raise a caution. But, you already made a judgement with your half-baked knowledge knowing very little of what is really cooking. I have already clarified what I meant by routine - the mortgage part. Move on.

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