Members!!!!

I have been looking to invest in a 2-3 Bhk since a couple of months now and more or less zero-ing on ireo sector 67a project ( although uptown, palm studio and victory valley are still on my radar) ... I request all knowledgable members ( especially the seniors and brokers in disguise of members) to comment upon the pros and cons of the project.

Also, I'd request other members planning to go for the project to get in touch with me, so that, we can look for a deal as a group rather than as multiple single parties .

As a start to the thread, let me list out a few pros and cons.

PROS

- New launch. Very little upfront payment.
- Specifications, better than basic, which are becoming a hallmark of ireo.
- location ( as per first information) looks to be good. Behind sector 67 or say
behind victory valley and PVSN
- other projects of the builder getting handsome appreciation and excellent
speed of all projects as of now ( cash crunch doesn't seem to be affecting the
So called FDI funded , politically funded as per grapevine, builder at all.

CONS

- yet undemarcated sector. Not in master plan 2021.
- builder, although very promising, hasn't delivered anything as yet
- specifications will be more along the lines of uptown ( which is available in
resale at 4800-4900 levels and has better location) and not very luxurious
Like grand arch,victory valley or skyon.
- although pricing is very speculative as of now but if it ends up 5k or more
Will be a disappointment ( like unitech south park).


I hope to hear from the other guys soon ....
;)





MODERATOR's NOTE - This thread was started about 18 months back, when this project was rumored to be getting launched . Due to delay in the launch this thread went into hibernation for some time and it is now alive . Newbies/First time users, please note & do not get misguided by the last year's launch price that stands mentioned . A duplicate thread { which stands closed now } has some updated information . Refer http://www.indianrealestateforum.com...7-a-46911.html .
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  • There is any construction in ireo 67 A .
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  • Hi I have also one 2 bhk unit in this project.. pl. add me for any group activity.. AKUSER.. sent msg to you.. thanks.
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  • Please include me in the group as well.

    AKUSER - let me know how to proceed?

    Regards
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  • AKUSER, I also have a flat in this project and want to get involved with you guys. How can I send you msg? I am new to this website, could not found way to send you a msg.

    Thanks !
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  • Ireo the corridoors

    I have a booking in this project can somebody advise on the future of the Project especially the huge ticket size. Will be grateful and thanks in advance.
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  • What was your log in price?


    Future doesnt look bright at all my friend on this one - Unless you have a holding capacity for a decade (My opinion based on a 9.5 to 10K entry price) else its may be really tough to make any return out of this......



    Originally Posted by Manirao
    I have a booking in this project can somebody advise on the future of the Project especially the huge ticket size. Will be grateful and thanks in advance.
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  • oil prices have dropped significantly since launch of this project.
    since there is an escalation clause which protects ireos margins if commodity prices of steel and cement also slip due to lower energy costs will ireo pass on the benefit to its buyers?
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  • You were also laced with greed when you purchased this flat. Otherwise why will anybody invest in such an expansive project, which will go on becoming expansive with every passing year (thanks to the escalation clause).

    Even after 25 years, you will not get the prize at which you purchased.


    Originally Posted by Trust123
    This is rediculous. The project is already overpriced laced with greed. Agree where in Gurgaon the car park is changed Rs 650 / sq ft. On top of that escalation clause. Let me tell you very explicitly if it is there it is gone to invoked. Note ireo is FDi and they need to safeguard and maintain retun and from that perspective monitored on quarterly basis.

    Sad they encashed their brand as if no tomm. and fooling investor who got trapped in marketing and Chanel partner estranged and trapped with something almost 30% more than current market value by any means. Unless there is bull the project is expected to break even in 2 years and substantial payment would have been gone

    See many posts in realty portals offering discount of 10-20% to come out.

    Anyway big learning for next Ireo projects
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  • Originally Posted by mungeri
    oil prices have dropped significantly since launch of this project.
    since there is an escalation clause which protects ireos margins if commodity prices of steel and cement also slip due to lower energy costs will ireo pass on the benefit to its buyers?


    Hi
    Greetings

    YOUR POINT IS HIGHLY VALID AND IS REFLECTIVE OF YOUR GENUINE UNDERSTANDING AND CONCERN.

    DO BUYERS REALLY EXPECT THESE "KHAIRATEES" TO PASS ON ANY BENEFIT DUE TO FALL IN RBI INFLATION INDICES??

    If something needs to be learnt it is from buyers of Greenopolis and CHD Vann, who got together and forced the management to get the escalation removed altogether from the BBA.

    The concern that "will management refund in case of fall in prices is absolutely valid", and this reason alone makes the ESCALATION CLAUSE ONE SIDED, ARBITRARY AND UNETHICAL.

    Expect interest rates to revert to 2008 levels if the commodity prices remain at current levels. http://www.indianrealestateforum.com/1242235-post18788.html

    Earlier expressed the concerns about escalation clause
    Originally Posted by BlessU
    Hi
    Greetings

    Such language can be found in a tender applied for by a contractor with govt department. Not something that one can relate to a builder who is selling a BRANDED product to "several buyers".

    Few things that need to be understood
    - Signing this would imply that you have wilfully and without any pressure agreed to pay any increase in costs, to an unlimited extent, for any reason, with no right to inspect/audit or recourse (other than legal, which unfortunately is very rarely opted for by a home buyer)
    - The heads/cost-items are not clearly defined
    - There is no provision by builder for providing details of such costs, for reasonable scrutiny by the homebuyers/RWA linked to actual purchases made,
    - What date will be considered as the start/base date applicable to a specific unit,
    - What will be the interval at which increase will be assessed,
    - Will the builder inform the buyer of any increase/decrease along with calculations?? I dont think so, only a demand stating cost escalation will be raised with fine print of 18-24% penalty compounded quarterly, if not paid within 15days
    - Will the increase be payable at every such interval,
    - What shall be the method of calculating this increase tagged to WPI and allocation of escalation to an individual unit. All units cannot be at same stage of construction/launch therefore increase cannot be equally applicable.
    - Would the increase be vetted, verified, inspected, audited, scrutinised by an independent- jointly appointed 3rd party?
    - Who will be verifying cash purchases?? what if 100 labour man days are "shown" to be paid in cash over the entire course of construction?? likewise for 100s of other items. Who can guarantee, such cash vouchers are not raised to fund officers out of pocket and personal expenses.
    - What would be the treatment to increase in costs which bloat beyond the date of projected delivery?
    - Why the builder is not using his experience to built in a cushion in the BSP based on past trend and future expectation based on data available from credible sources
    - What would be the treatment method in case of reduction in costs?
    - What type of provisions/arrangements towards funding of purchase of such material, as mentioned above have been created by the builder?
    - Has the builder contracted and issued necessary bank guarantees to suppliers towards key materials required as per their project milestones planned?
    - What kind of business risk/costs the builder wants to be accountable for due to poor management, administration, pilferage, improper warehousing/storing, embezzlment, Minimum order quantities and their accounting, faulty planning, contingencies, avoiding insurance costs, bad workmanship, external/third party conflicts resulting in delays and cost escalation, cost increase due to non compliance to statutory requirements/undertakings
    - What is the Maximum level of Cost escalation that the buyer will be agreeing to, if any? It definitely cannot be open ended.
    - What would be the treatment of any increase/decrease in taxes/interest and their implication on cost escalation/decrease. If any modvat type benefit comes to builder or any sops impacting reduction in construction cost, will they be transferred to the buyer?
    - Will any financial costs for signing any contract of supplies/services be passed to the buyer?

    Friends, we are living in very volatile environment and above are just a few examples out of 100s of reasons for cost escalation/decrease which are not dealt/disclosed in the definition provided above.. The language used in BBA and doubts arising from the same clearly indicates that this is one sided unless a buyer has absolute faith in the builder.

    The builder should honestly come forth and say that no other escalation beyond an x% (say 10% of BSP) shall be passed over to the customer and borne as loss by him. Items of costs to be included should be clearly identified and an Independent 3rd party should be included for regular inspection, stock taking, evaluation and audit. Such escalation should not include normal escalation in cost that is considered as business practice by an experienced builder of repute.

    Buyer does not have the knowledge, time and resources to deal with the above. Buyer will ultimately be left uncomfortable/insecure at all times and at the mercy of whims, fancies and inefficiencies of the builder.

    Cheers


    Crude down 40% from highs
    CNG down from $ 14-16 to $ 4.12 per unit
    Iron ore lowest in 5 years
    Cotton lowest in 5 years
    Copper lowest in 5 years
    Gold struggling to look above $1200
    Japan reduces interest rates and fail every attempt to inflate its economy


    Cheers
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  • hi
    You seem to have highlighted a whole range of implications while i was just scratching the surface.
    Do u know if anybody from corridors has raised this issue of escalation calculation with ireo and what their response was?



    Originally Posted by BlessU
    Hi
    Greetings

    YOUR POINT IS HIGHLY VALID AND IS REFLECTIVE OF YOUR GENUINE UNDERSTANDING AND CONCERN.

    DO BUYERS REALLY EXPECT THESE "KHAIRATEES" TO PASS ON ANY BENEFIT DUE TO FALL IN RBI INFLATION INDICES??

    If something needs to be learnt it is from buyers of Greenopolis and CHD Vann, who got together and forced the management to get the escalation removed altogether from the BBA.

    The concern that "will management refund in case of fall in prices is absolutely valid", and this reason alone makes the ESCALATION CLAUSE ONE SIDED, ARBITRARY AND UNETHICAL.

    Expect interest rates to revert to 2008 levels if the commodity prices remain at current levels. http://www.indianrealestateforum.com/1242235-post18788.html

    Earlier expressed the concerns about escalation clause


    Crude down 40% from highs
    CNG down from $ 14-16 to $ 4.12 per unit
    Iron ore lowest in 5 years
    Cotton lowest in 5 years
    Copper lowest in 5 years
    Gold struggling to look above $1200
    Japan reduces interest rates and fail every attempt to inflate its economy


    Cheers
    CommentQuote
  • Originally Posted by mungeri
    hi
    You seem to have highlighted a whole range of implications while i was just scratching the surface.
    Do u know if anybody from corridors has raised this issue of escalation calculation with ireo and what their response was?


    Hi
    Greetings

    Power of an idea expressed two years ago in the post reproduced earlier, perhaps whose time seems to have come.. ;);)

    Some feel infuriated as they are too consumed by the thought.. "mera builder sabse achha",,many try to negatively reason it out,,, very few realise and act upon it. ALL AGREE to it sooner or latter..



    Escalation clause in unilateral, one sided, abusive, arbitrary, unethical and illegal*.


    *Ref:
    -CCI Supplementary order in Belaire RWA vs DLF pg 13, 16; pg 16, 19; pg 33, 1.2; pg 35, 1.6; pg 71&72, 12
    -Greenopolis RWA got removed Escalation Clause from BBA
    -CHD Vann Buyers got Escalation Clause Removed

    Cheers
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  • Indeed, ideas dont die.
    In the Mera builder sab se achcha paradigm, he is also then potentially sabse achcha at bleeding you.
    In context, isn't it highly probable they learned from those cases mentioned by you and evolved their language/terms.

    Originally Posted by BlessU
    Hi
    Greetings

    Power of an idea expressed two years ago in the post reproduced earlier, perhaps whose time seems to have come.. ;);)

    Some feel infuriated as they are too consumed by the thought.. "mera builder sabse achha",,many try to negatively reason it out,,, very few realise and act upon it. ALL AGREE to it sooner or latter..



    Escalation clause in unilateral, one sided, abusive, arbitrary, unethical and illegal*.


    *Ref:
    -CCI Supplementary order in Belaire RWA vs DLF pg 13, 16; pg 16, 19; pg 33, 1.2; pg 35, 1.6; pg 71&72, 12
    -Greenopolis RWA got removed Escalation Clause from BBA
    -CHD Vann Buyers got Escalation Clause Removed

    Cheers
    CommentQuote
  • Originally Posted by mungeri
    Indeed, ideas dont die.
    In the Mera builder sab se achcha paradigm, he is also then potentially sabse achcha at bleeding you.
    In context, isn't it highly probable they learned from those cases mentioned by you and evolved their language/terms.


    Hi
    Greetings
    Every crime conducted through sophisticated and evolved legal jargon gets trapped by the test of whether the act is unilateral, one sided, abusive, arbitrary, unethical and illegal

    Please attempt reading through CCI Supplementary judgement,, which is actually brilliant.

    Super area increase beyond +/-2%... abusive
    FAR increase... Illegal/abusive
    Increase in Floors/height.. illegal/abusive/arbitrary
    Increase in Security/maintenance.. abusive/illegal/unilateral
    etc. etc.

    Only thing is these guys know that you and me dont have a legal department to intimidate them. Rest go through the order, its all in black and while... contested/appealed upheld by tribunal.. contested/appealed upheld by SC
    Rs 150 crores of 630 paid, rest 480 will HAVE TO BE PAID!!!

    Cheers
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  • Can you please pm a link of the ruling?
    Also, no part of that ruling is about a direct cost escalation clause.
    Based on what you posted it does show cognizance of abuse however.


    Originally Posted by BlessU
    Hi
    Greetings
    Every crime conducted through sophisticated and evolved legal jargon gets trapped by the test of whether the act is unilateral, one sided, abusive, arbitrary, unethical and illegal

    Please attempt reading through CCI Supplementary judgement,, which is actually brilliant.

    Super area increase beyond +/-2%... abusive
    FAR increase... Illegal/abusive
    Increase in Floors/height.. illegal/abusive/arbitrary
    Increase in Security/maintenance.. abusive/illegal/unilateral
    etc. etc.

    Only thing is these guys know that you and me dont have a legal department to intimidate them. Rest go through the order, its all in black and while... contested/appealed upheld by tribunal.. contested/appealed upheld by SC
    Rs 150 crores of 630 paid, rest 480 will HAVE TO BE PAID!!!

    Cheers


    Hi
    Greetings

    *Ref:
    -CCI Supplementary order in Belaire RWA vs DLF pg 13, 16; pg 16, 19; pg 33, 1.2; pg 35, 1.6; pg 71&72, 12

    what can be more direct than escalating cost through Super Area Increase which has no credence in HDRUA Act. For better reasoning post reproduced earlier is more than sufficient. Nothing other than govt taxes/cess/revenue etc can be claimed..
    If builders have their way, they can be expected to claim FINES faced due to compounding of offences from buyers or cost of water treatment plant inspite of clear instructions in Environmental Certificate to arrange for supply of water that does not hamper ground water level.

    All it needs is a strong argument to fight an illegality and not past precedence.. even courts dont permit perpetuation of illegality in an order by any court..

    Cheers
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  • Hi, I am Rajan Gupta and very new to this group. Infact, just got myself added today only. I am also one of the investors in Ireo Corridors . Would like to know are we planning to do anything / take some action as this project is a clear cut loss case and there seems to be no ray of hope in coming future as well. Market proce is around 8300 whereas cheapest people bought a fakt in this project was 8750. This practically means loss of 450/ sg feet + 8-10 lacs of interest loss. I would suggest lets unite togethere and tallk to ireo to refund our money with interest or approach the consumer court as these days there are lots of cases where in investors are approching or have approcahed the consumer court and have got relief against theses fradulent builders who are making merry on our money. Infact, I have come to know of one such popular lawyers who is quite successful and pioneer in such cases. He has got people their money, compensation, penalty and early possession of flats in many cases and discussion of his successful cases are there on the net as well.

    Would suggest if we can all meet and discuss the next steps otherwise we will continue to be moiled by these builders. Please respond and suggest. I would also suggest to make some group and interact on that group and put our grievances there so that more and more people like us can add to the group and share their experiences..

    lets make an inventory of all the investors as well..

    Reagrds
    CA Rajan Gupta
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