Dear Friends

I want to take this opportunity to ask all members this question, Are we ok with the way builders treat up? Are we fine being looted everyday?

Has the time come for all of us to come together & fight back?

There are multiple violations that are happening in the real estate sector. If one looks at the Haryana Apartment Ownership Act everyday where builders are taking away are rights & money & nothing is happening. Some of the examples of this loot are:

1) Sale of non-existent Super area - Has anyone ever received the actual calculation of super area. Also there is no standardization of Super Area definition.

2) Sale of Parking - Sale of Parking is not allowed as per the act, SC judgement & BR III issued by DTCP yet we all are forced to buy parking.

3) Making crazy profits - The Law in Haryana limits max profit a builder can make from a project to 15% only. Yet no one is implementing the same. They sign an agreement with DTCP/ Govt (LC IVA) which limits profit to 15% anything over & above that has to be deposited with the Govt.

4) Club - The club belongs to owners not the builder. The builder has no right to charge membership fees or retain the club. Yet we all use the club inside the complex at the mercy of the builder.

5) Shops, Schools with GHS - The Shops, School etc with GHS again belongs to owners not builder & he has no right to sell the same. Yet builders do that.The rent from these shops should be used to maintain the complex & reduce maintenance bills.

6) RWA - builders need to hand over the IBMS & maintenance of complex to RWA but builders don't do that & keep making money out of maintenance at our cost.

7) One sided contracts - extremely abusive contracts

There are many more such issues but one thing is clear it can not go on like this any longer. Time has come for a change & it is up to us to make this change happen...So wake up & question your builder today.

Regards

Nitin
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  • the only way i see is that from the end users. stop buying these flats and let the investors and builder and politicians fight with each other.
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  • That's one way which will put pressure :) but another way is coming together & make yourself heard
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  • i see a lot people in facebook and other social networking site groups say..i hate corruption etc etc......india against corruption. blah blah...

    bottom line:

    "everybody is an honest until and unless he gets a chance to do a corruption":)
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  • PE funds, realty firms in disputes over exits, corporate governance

    PE funds, realty firms in disputes over exits, corporate governance - Livemint

    PE funds, realty firms in disputes over exits, corporate governance
    Analysts fear this could lead to a negative investor sentiment towards the Indian real estate sector
    Madhurima Nandy
    First Published: Thu, Nov 01 2012. 12 30 AM IST

    A file photo of a real estate project. Many PE funds that invested in real estate firms or projects during the sector’s peak years of 2006-07 are nearing the end of their investment horizon, which means they need to return money, preferably profits, to their investors. Photo: Ramesh Pathania/Mint
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    Bangalore: Several private equity (PE) firms have initiated legal or arbitration proceedings against their real estate partners in India over corporate governance issues or delays that restrict the funds from selling their investments.
    New York-based AIG Global Real Estate recently sent a legal notice to Bangalore-based real estate company RMZ Corp. over their equal joint venture project in Hyderabad. AIG wants RMZ to sell its stake in the project as it has been unable to develop it the past few years.
    In another such instance, Citi Property Investors (now known as Apollo Global Management Llc.) and JP Morgan Chase and Co. have initiated separate arbitration proceedings against BPTP Ltd claiming the developer hasn’t been able to provide options to the funds to sell their holdings, The Economic Times reported on 4 October.
    Property analysts fear this is only the beginning of several such disputes and that they could lead to a further negative investor sentiment towards the Indian real estate sector.
    Executives at many PE funds that are in arbitration or other legal processes against developers confirmed the disputes but declined to be identified, citing the sensitivity of the issue. “We are going to see many such instances of funds and developers going into arbitration or to court, so that the former get their money back. This is a last-stage effort with many funds coming to a close, and need to return money to their investors,” said Ambar Maheshwari, managing director, corporate finance, at property advisory Jones Lang LaSalle.
    Many PE funds that invested in real estate firms or projects during the sector’s peak years of 2006-07 are nearing the end of their investment horizon, which means they need to return money, preferably profits, to their investors. But with the development of many projects being delayed and realty firms being unable to launch public share sales because of volatile markets, the PE firms are stuck. AIG’s relationship with RMZ—it has invested around $200 million (around Rs.1,100 crore) in five projects with the developer—has turned bitter over the delay in the Hyderabad project.
    “The fund is fighting tooth and nail to make RMZ exit from the SPV (special purpose vehicle). Then a decision will be taken on whether AIG will develop the project on its own or find a new partner,” said a person familiar with the development, asking not to be named. “AIG is now planning to auction the Hyderabad site, though RMZ is not agreeing to it.” RMZ managing director Raj Menda did not reply to emails sent earlier this week.
    The more serious charge is that of lapses in corporate governance.
    Mausmi SA Investments Llc., an associate company of PE fund Sun Apollo, earlier this year filed a petition in the Company Law Board (CLB) alleging fraud and misutilization of funds by developer Rustomjee Group. Sun Apollo had invested around Rs.234 crore in Rustomjee’s holding company Keystone Realtors Pvt. Ltd three years ago.
    CLB dismissed the ad-interim petition and asked the two parties to resolve the dispute through arbitration.
    Boman Irani, chairman and managing director, Rustomjee Group, said the fund has appealed against the CLB order in the Mumbai high court. “We will defend our stand in the high court,” he said.
    A senior fund official at a PE firm that has invested in a real estate company currently in arbitration with its other investors, said due diligence is important to see whether the issue is only about being unable to return money to funds or a graver one related to corporate governance.
    “Many of these deals were done at entity level, where the investor had over-valued the company. With the erosion of valuation, it is only natural that funds have not made the desired returns,” he said.
    BPTP is already in arbitration with Apollo Global and JP Morgan Chase, a company executive said, also declining to be identified. Spokespersons of JP Morgan and Apollo Global declined to comment on the issue.
    Balaji Rao, founder, Indic Capital Advisors Pvt. Ltd, said there was a systemic failure in terms of enforcement of contracts between funds and developers. “Promises and pledges have been made by developers and now many are trying to wriggle out of their contracts. Some of these go into arbitration, else they go to court. The long-term impact of such issues on India as an investment destination would be negative,” said Rao.
    Given that PE firms aren’t able to give their investors profitable returns, the investors may want to put their money into India’s real estate market directly than through the funds, said Raja Kaushal, managing director, BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd. “Since many fund managers haven’t performed, going forward we will see investors wanting to invest directly so that they have full control over the capital.”
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  • My dear friend...I can understand what you are saying....A lot of ppl are corrupt yet I think our generation is different. We take pride in being successful on our own. A lot of us want to change the system & bring honesty. I think time is changing & we all will bring the change. I am saying this because I work with a set of people where all of us have enough opportunity to make money by being corrupt yet we all choose to be honest till the last penny.... :) & make money through our jobs.

    Even if we as individual change & raise voice against others who are corrupt things will be different. :)
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  • Dear nbkp4gk,

    I am very happy to hear your first hand account of honesty and having similar friends. This is indeed one of the rays of hopes. I appreciate the spirite and hope more will follow the suit.

    Unfortunately in past decade, I have seen my IES/ state level admin officer friends quiting their jobs as they couldn't take it long amidst the corruption and ended up moving to private sector.

    by the way, I wonder what does nbkp4gk stand for!

    I have quoted you in my another post - hope you don't mind:
    https://www.indianrealestateforum.com/forum/iref%C2%AE-lounge/the-off-topic-forum/42530-looking-for-rays-of-hope?t=44392

    Regards,



    Originally Posted by nbkp4gk
    My dear friend...I can understand what you are saying....A lot of ppl are corrupt yet I think our generation is different. We take pride in being successful on our own. A lot of us want to change the system & bring honesty. I think time is changing & we all will bring the change. I am saying this because I work with a set of people where all of us have enough opportunity to make money by being corrupt yet we all choose to be honest till the last penny.... :) & make money through our jobs.

    Even if we as individual change & raise voice against others who are corrupt things will be different. :)
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  • Thread started for different topic and post followed are different
    Can we stick to thread pls
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  • Here to All END USERS -- Take a Pledge not to buy any single property for like next 6-8 months...

    The whole Builder-Investor Nexus will come to halt in coming months...& correction in prices will come in to picture

    " TRISHNA PE LAGAAM LAGAIYEA "
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  • Originally Posted by Everest
    Dear nbkp4gk,

    I am very happy to hear your first hand account of honesty and having similar friends. This is indeed one of the rays of hopes. I appreciate the spirite and hope more will follow the suit.

    Unfortunately in past decade, I have seen my IES/ state level admin officer friends quiting their jobs as they couldn't take it long amidst the corruption and ended up moving to private sector.

    by the way, I wonder what does nbkp4gk stand for!

    I have quoted you in my another post - hope you don't mind:
    https://www.indianrealestateforum.com/forum/iref%C2%AE-lounge/the-off-topic-forum/42530-looking-for-rays-of-hope?t=44392

    Regards,


    My name is Nitin "nbkp4gk" is my office login ID & have been using it for 6 years now so kind of easy to remember & gets used in a lot of forums I join.

    Thanks for mentioning my post. I found the topic you had started as an effort in the right direction & I am sure the world will change.
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  • Originally Posted by GoluBuilder
    Here to All END USERS -- Take a Pledge not to buy any single property for like next 6-8 months...

    The whole Builder-Investor Nexus will come to halt in coming months...& correction in prices will come in to picture

    " TRISHNA PE LAGAAM LAGAIYEA "


    buddy.. this is not going to happen.. so chill..
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  • Change is coming....FAOA India (Federation of Apartment Owners Association) which is a body of different RWAs in India has launched a green letter movement asking for refund of illegal Parking charges taken from customers. As already mentioned in my first post Parking can not be sold thus money charged for it needs to be refunded.

    In case you want to be part of this movement you can connect with FAOA through your RWA.
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