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Spire Orion at South Spire World, Sector 68, Gurgaon

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Spire Orion at South Spire World, Sector 68, Gurgaon

Last updated: August 14 2017
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  • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

    Originally posted by Gaurav23 View Post
    I have been informed that HUDA has reduced EDC + IDC charges in some parts of Gurgaon (by around Rs50). Not sure if it impacts sector68 but if anyone spoke with CRM recently about this then please advise.
    This is a welcome news, lets see if Spire 68 figures in the list.
    Thanks
    "Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition."

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    • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

      Originally posted by Gaurav23 View Post
      1) These were tentative sizes and were revised after plans were approved by huda. Ask for revised floor plans from CRM. But if you are buying in resale then the flor plans should be in the BBA of seller.
      2) Both from Sohna Road and from Sector 69.
      3) For me, no ready residential project of Spire as a negative because i cannot compare the quality of construction with other builders.
      4) 4 per floor, the exact site plan can be requested from CRM but the localtion of T1 -7 has not changed in the old site plan. Old site plan is available if you google.
      5) Spire has office on ground flor in Vipul agora mall on MG road.

      Although you would be but if you are comparing different projects then one should write down both - & +
      I hope T8 hasn't gone for a walk!

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      • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

        Originally posted by ggnboy View Post
        Just received a letter from Spire saying future payments are to be made into an Escrow account - am guessing thats a good thing as they wont be able to divert these funds to other projects

        Definitely a positive development . Should give a lot of confidence to existing end users/Investors .
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        • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

          Originally posted by ggnboy View Post
          Just received a letter from Spire saying future payments are to be made into an Escrow account - am guessing thats a good thing as they wont be able to divert these funds to other projects
          Maybe I am missing out on something, but how is putting money in an escrow account beneficial for us ? Escrow is generally used when a third party holds the money for two transacting parties. Why would we want to bring in another party to hold our money ? Secondly, with escrow payments are kept till milestones are achieved and then released on successful completion of milestones. So, if we are paying Spire only when they raise a demand after completing a milestone as stated in BBA, how does this escrow come into the picture ? We will end up paying more interest for loans and accrue less interest on money kept in bank if we release the funds too soon.
          Unless Spire is stating that this escrow is for their internal purposes and that even though demands will be raised as per BBA but internally they will keep this money only for utilization in Spire South project.
          For me, it doesn't matter where they use this money as long as I am able to see progress on the ground. Rest is complete BS for me. Just my POV!
          Rest, I haven't received this letter and will comment more on it once I receive it

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          • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

            Originally posted by ggnkaaadmi View Post
            Maybe I am missing out on something, but how is putting money in an escrow account beneficial for us ? Escrow is generally used when a third party holds the money for two transacting parties. Why would we want to bring in another party to hold our money ? Secondly, with escrow payments are kept till milestones are achieved and then released on successful completion of milestones. So, if we are paying Spire only when they raise a demand after completing a milestone as stated in BBA, how does this escrow come into the picture ? We will end up paying more interest for loans and accrue less interest on money kept in bank if we release the funds too soon.
            Unless Spire is stating that this escrow is for their internal purposes and that even though demands will be raised as per BBA but internally they will keep this money only for utilization in Spire South project.
            For me, it doesn't matter where they use this money as long as I am able to see progress on the ground. Rest is complete BS for me. Just my POV!
            Rest, I haven't received this letter and will comment more on it once I receive it
            ggnkaadmi - No one will agree to pay installments in advance I am with you on that, but nobody asked for it so how did this come up?

            I think Escrow account brings accountability and traceability to transactions. Be it for their internal use or milestone based payment to contractor that only they know better. As you said, it doesnt matter as long as we are able to see progress on the ground.

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            • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

              Originally posted by ggnkaaadmi View Post
              Maybe I am missing out on something, but how is putting money in an escrow account beneficial for us ? Escrow is generally used when a third party holds the money for two transacting parties. Why would we want to bring in another party to hold our money ? Secondly, with escrow payments are kept till milestones are achieved and then released on successful completion of milestones. So, if we are paying Spire only when they raise a demand after completing a milestone as stated in BBA, how does this escrow come into the picture ? We will end up paying more interest for loans and accrue less interest on money kept in bank if we release the funds too soon.
              Unless Spire is stating that this escrow is for their internal purposes and that even though demands will be raised as per BBA but internally they will keep this money only for utilization in Spire South project.
              For me, it doesn't matter where they use this money as long as I am able to see progress on the ground. Rest is complete BS for me. Just my POV!
              Rest, I haven't received this letter and will comment more on it once I receive it
              Hi Bro,
              In my opinion it was always an escrow account, spire being a PE fund so may be that is the norm. If I remember may be amit did mentioned this earlier when people were raising doubts about this project.
              Money in escrow means that no one can RUN away with our money...as many were preaching here earlier. This may be a condition from Era who is the contractor for his surety of payment against the delivery.
              Regards,
              "Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition."

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              • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

                what i have seen is that escrow is used when the 'Trust factor' is missing, maybe Spire global office don't trust the Indian office employees or there could be a 3rd party interest involved.

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                • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

                  Originally posted by golu11 View Post
                  what i have seen is that escrow is used when the 'Trust factor' is missing, maybe Spire global office don't trust the Indian office employees or there could be a 3rd party interest involved.
                  Certainly not the case...
                  In any public issue also, the money goes into escrow, so you will assume that even that money is not safe. On the contrary this is a better and clean way. In future this should be the norm for investor safety.
                  Jokingly...may be Golu u r the reason...you may have managed to scare a few. Now at least say that this project is, now up and about...
                  Last edited by rs2507; September 4 2012, 09:53 PM.
                  "Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition."

                  Comment


                  • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

                    Ensure your developer has an escrow account - Money Matters - livemint.com

                    Ensure your developer has an escrow account
                    [COLOR=#FF9933 !important]Funds parked in escrow accounts can be used by your developer only for specific disbursements related to your project; if there isn’t any escrow mechanism, consider it a risky investment[/COLOR]






                    One of the biggest reasons for delay in real estate projects is obviously shortage of funds. But how does this shortage of fund arise with you, the homebuyer, paying regular equated monthly instalments to the bank and the bank disbursing a chunk of funds to the company regularly or at a go, depending on whether you have opted for a downpayment or construction-linked plan. This is how: often companies use the funds received from homebuyers to service their debts taken for other purposes, for paying taxes or interest or even to start the construction of another project that is perhaps more in demand.


                    By Shyamal Banerjee/Mint

                    Says Manoj Goyal, senior vice-president, Raheja Developers, a New Delhi-based firm, “Often developers have to invest almost 40% of the project’s cost on land and approvals from their own share of investments. Banks do not fund the cost of land. After receiving some money from buyers, the developer often withdraw the initial share of funds invested for other purposes.” This may create a problem in future.
                    So how do you get around this problem? While things may not be under your control directly, if you ensure that the developer you are booking your flat with has an escrow account dedicated to the project, the problem could be contained.
                    What’s an escrow account and how does it help?
                    An escrow account is one in which funds are accumulated for specific disbursements. The disbursements could be regular payouts for construction activity, payment of taxes and interests.
                    An escrow mechanism is required for timely and proper release of funds without any bureaucratic hurdles.
                    For an escrow account, the bank and the account holder (in this case, the builder) draw up an agreement and a trustee is appointed for the account. The trustee has well-defined instructions on release of funds, enforcing a charge on assets, managing the covenants and with approval, effecting the remedies against default. The escrow trustee to that effect is a neutral party.
                    What works here is the fact that the account holder (builder) cannot use the funds parked in this account for a purpose that is not mandated. So if the mandate is that the funds will be used for construction activity, the funds cannot be used for any other purpose. Says Amit Goenka, national director (capital transactions), Knight Frank India, a property consultant firm, “Escrow mechanism is a ring-fenced method of controlling the cash flows, covenants and obligations of the borrower (account holder).”
                    In case of apartment projects, lending banks usually act as trustees. And for this reason the builder has to take a no-objection certificate from the bank before registering the apartment or any part of the project in the name of the buyer.
                    Is it mandatory?
                    Unfortunately, no. There is no regulation that makes it mandatory for developers to have an escrow account for each project in India.
                    However, the draft Real Estate (development and regulatory) Bill, 2011 has taken notice of the problem. It proposes the use of escrow for customer advances and all third-party liabilities so that proper monitoring and use of proceeds is ensured in real estate projects.
                    In May last year, the Reserve Bank of India, too, asked banks to put in place an escrow mechanism that can fence their loans to real estate firms and keep a closer tab on the end use of funds. This was primarily to contain case of delayed projects and use of homebuyers’ money for other purposes.
                    And banks follow this practise. According to the official spokesperson of Axis Bank Ltd, who did not want to be named, “At present, there is no such regulatory stipulation. We try to negotiate opening of escrow account in cases where we apprehend that sale proceeds can be taken out of the project, though it is not mandatory.”
                    In developed nations such as the US, UK, Australia and Dubai, the model of escrow accounts is already in place for real estate projects.
                    Do developers in India have escrow accounts? Even as having a escrow account is not mandatory in India, Mint independently found out that most of the firms listed on stock exchanges (national and regional) have a separate escrow account dedicated to individual projects.
                    Also, companies that receive money from private equity or foreign institutional investors open escrow accounts. Some others in the unorganized segment, too, maintain separate accounts. For example, FIRE Capital, a real estate dedicated fund, has invested in various residential township projects through special purpose vehicles (SPVs). “Each SPV being an independent entity needs a separate escrow account,” says Om Chaudhary, CEO, FIRE Capital and chairman of Astrum Homes, a real estate firm.
                    What it means for you
                    This would mean that your developer, in all probability, would deliver the project on time. Besides timely implementation of the project, the move would ensure transparency in fund utilization. “This helps in timely completion of the project as funds are not diverted for any other project/purpose,” says Anil Kumar, joint managing director and CEO, Ansal Properties and Infrastructure Ltd, a New Delhi-based firm having escrow mechanism.
                    What can you do?
                    The use of escrow mechanism is a confidential agreement between the lender and the borrower, who could be your developer. However, asking your developer whether he maintains an escrow mechanism is our right. Says a Noida-based developer, who did not want to be named, “One can ask the developer if he wishes to. A firm with a good governance policy will not shy away from discussing the matter and revealing the information.”
                    On the other hand, bank cannot divulge this information as it is the bank’s responsibility not to reveal details of any borrower. The Axis Bank official spokesperson says, “In a few cases where the builder has agreed to open an escrow account, we try to add a covenant where they are asked to mention this fact on their publicity material, sale letters and agreements. The banks can’t divulge this since it is a bilateral agreement between the builder and the bank.”
                    If you have already invested in the project, you can still ask your builder. However, if your developer is not maintaining an escrow mechanism, consider your investment to be a risky one.
                    If it was easy, everybody would be doing it.

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                    • Re : Spire Orion at South Spire World, Sector 68, Gurgaon

                      Zorin,
                      Thanks for clearing some air,...another positive for Spire investors :-)
                      Regards
                      "Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition."

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