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BPTP Park Arena, Sec-80 in a big mess (Stay away from BPTP if you love your money)

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BPTP Park Arena, Sec-80 in a big mess (Stay away from BPTP if you love your money)

Last updated: November 28 2014
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  • BPTP Park Arena, Sec-80 in a big mess (Stay away from BPTP if you love your money)

    Quoting Mr. Tinani

    I finally got through to BPTP and spoke to Ashish, a customer care executive. Here’s how the question and answer session went:

    Q. Why has work stopped on Discovery Park. is there a problem?

    A. There is absolutely no problem with Discovery Park and it is possible that there was a labor issue on the day you visited the site, but othersize work is on as usual at Discovery Park.

    Q. Why are you not accepting payments and transfers connected with BPTP Park Arena? Is there a problem?

    A. Yes, there’s an issue with BPTP Park Arena. You can say that there’s an internal conflict with our financial partners and I don’t have any more details about the matter. We expect the situation to be resolved by November 2012-end.

    Q. If there is a problem with Park Arena, why isn’t the BPTP management communicating the issue to all the flat owners?

    A. Well, that communication is a management decision and I reckon that an email will be sent out shortly.

    Guys, like all you flat owners out there, I too am very disapointed by the response on park Arena. The least BPTP can do is communicate its problems with all flat owners who have been patiently waiting for many years now. Many flat owners would have obtained loans and they would be paying up the EMIs and rents and thereby running their finances dry. I wish them the best.
    The above is related with this

    BANGALORE/NEW DELHI: Private equity funds, Citi Property Investors and JPMorgan Chase, have initiated separate arbitration proceedings against Delhi-based real estate developer BPTP, on the grounds that it has failed to provide a time-bound exit for their respective investments in the company.

    The two global funds have alleged a breach of contract on the part of BPTP, which was to implement an initial public offering by July 8, 2011, more than one person having knowledge of the developments said, requesting anonymity.

    The sources said that arbitrators have been appointed and proceedings are expected to begin shortly in the two cases, exposing the rot in the country's real estate sector, which is plagued by a mix of debt problems, declining sales, corrupt practices and poor credibility of the promoters of many of these firms.

    Citi Property Investors, which was bought by Apollo Global Management from Citigroup in 2010, had invested 322.5 crore for a 5.89% stake in the company in 2007. Harbour Victoria Investment Holdings, a part of JPMorgan Chase & Co group of companies, had picked up 6.21% stake in the company for around 260 crore in 2008-2009.

    Both deals happened at the peak of the real estate boom, when BPTP had began to emerge as a key player in and around Delhi, acquiring marquee land parcels for record prices. According to the original terms of the agreement, BPTP offered the investors an exit through an IPO. Though BPTP got a nod from the Securities and Exchange Board of India, the stock market regulator, for a 1,500-crore IPO in May 2010, it decided to defer it, like many other developers at the time, due to uncertain market conditions.

    Citi Property India recently filed a petition in the Delhi High Court and has sought arbitration under Section 9 of the Arbitration and Conciliation Act. The court gave an interim order asking BPTP to provide securities in the form of unencumbered properties against CPI's investment and the case is still ongoing. It also asked BPTP not to sell, alienate or otherwise encumber any of the 'selected projects' till the next date.

    In the case of JPMorgan, the agreement with BPTP included a put option agreement, whereby the investor will get an exit through promoter buyback of shares at a fixed rate of return if the IPO did not happen. "Certain documents were signed in 2009 but when the date for an exit came, JPMorgan found it difficult to get an exit. It was a breach of contract," said a person involved in the arbitration process between BPTP and JPMorgan, which is currently underway in London.

    The person alleged that when the IPO did not happen and it was time to invoke the put option, the builder started alerting the Reserve Bank of India about funds invoking the 'put option' that were considered a grey area then.
  • #2

    #2

    Re : BPTP Park Arena, Sec-80 in a big mess (Stay away from BPTP if you love your money)

    Originally posted by miketest View Post
    Quoting Mr. Tinani



    The above is related with this
    Hi
    Greetings

    "Can of worms".. buyers/broker/investor/partner can be sure about the next -ve surprise.

    BPTP tests patience of people until they approach court. Thereafter they try to solve out of court through settlement. If someone makes an honest and logical request, it is simply binned or answered in the most unprofessional manner.

    I think matter will be sorted out of court here as well.

    Cheers

    Comment

    • #3

      #3

      Re : BPTP Park Arena, Sec-80 in a big mess (Stay away from BPTP if you love your money)

      This project looked great on papers and I was so tempted to buy it any on3 point but I am glad that i decided to buy RPS Savana. Does anyone have any update on this project?

      Comment

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