Today HT has exposed THE GREAT PROPERTY SCAM where almost 4000 flats which were supposedly for needy people were being alloted to politicians and their families since 1995. This is not the end of it most of these flats have been sold at crazy prices by these politicians and their families. Some experts are valuating this scam in excess of 10000 crores. Similar things may be happening in other cities but are still not exposed. Another pointer to RE bubble.

Since Mumbai is the Commercial Capital of India, Will this have an impact on the RE prices across India?
Look forward to your opinion and poll.

PS- This is a generic poll related to RE across India hence has no correlation with Noida forum. Anybody can poll.
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  • Hi Munish,

    This is not the first time such type of scam has happened, infact exactly same type of scam was heard around 4 or 5 years back, where the houses for poor were bought at very low cost by some operator and then were resold and rented out.

    But I dont think this will have any significant impact on prices of Mumbai, infact it affirms the shortage of space in Mumbai.
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  • Originally Posted by Digvijay
    Hi Munish,

    This is not the first time such type of scam has happened, infact exactly same type of scam was heard around 4 or 5 years back, where the houses for poor were bought at very low cost by some operator and then were resold and rented out.

    But I dont think this will have any significant impact on prices of Mumbai, infact it affirms the shortage of space in Mumbai.


    Digvijay it affirms the 3 more things-
    -Greed of policiticans
    -Helpless common man
    -Lack of transparency

    What happened 5 years back did not seem to get exposed the way this one has. i feel it will be severe. However there are lots of ifs and buts and things can change overnight.:bab (5):
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  • You are right Munish, in any case it will push the prices up

    4000 families will move out of the illegally purchased flats and look for shelter. The 4000 flats will be locked my MADA and court will take decision. Moreover it shows how much is the demand in the Mumbai that even such flats are chased. ( Normally these are the typical Janta flats)
    It reaffirms my belief that Mumbai is one Gravity defying RE market. I wonder how long the trend will remain up in Mumbai.
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  • There are thousands of scams in Mumbai related to real estate. There is the Mhada scam where a Qayamat se Qayamat se actor won the lottery for two consecutive times in two lottery drawings. His name also figured in different segments of housing (MIG/LIG) in the same drawing. With over 10L applicants the probabilities of these would be unthinkable. I'm sure there are others who won the lottery as well.


    It is meaningless to discuss scams in India as everyone is interconnected including SS/BJP/Congress/NCP and every other party.

    Subhash Desai of Shiv Sena when quizzed about the scam said that action should be taken against those who participated in the scam. However it was later pointed out to him that he too was a recipient of the flats under the CM's quota which he sold later for crores.

    There is absolute corruption in India so nothing can happen because the core is rotten beyond repair
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  • Originally Posted by rameshyahoo



    the core is rotten beyond repair


    Hear hear.

    Lets ask David Cameron to stay back as Indian Emperor and go back to British rule:)
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  • This is not just greed but its blind lust for money, there was a similar case in Delhi 5 years ago where the man was caught by CBI who had bought 80% of flats meant for EWS on bogus papers.

    We need to be proactive to ensure such things don't happen.
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  • Originally Posted by Digvijay
    You are right Munish, in any case it will push the prices up

    4000 families will move out of the illegally purchased flats and look for shelter. The 4000 flats will be locked my MADA and court will take decision. Moreover it shows how much is the demand in the Mumbai that even such flats are chased. ( Normally these are the typical Janta flats)
    It reaffirms my belief that Mumbai is one Gravity defying RE market. I wonder how long the trend will remain up in Mumbai.


    Nice way to looking at things. valid points
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  • Originally Posted by rameshyahoo
    There are thousands of scams in Mumbai related to real estate. There is the Mhada scam where a Qayamat se Qayamat se actor won the lottery for two consecutive times in two lottery drawings. His name also figured in different segments of housing (MIG/LIG) in the same drawing. With over 10L applicants the probabilities of these would be unthinkable. I'm sure there are others who won the lottery as well.


    It is meaningless to discuss scams in India as everyone is interconnected including SS/BJP/Congress/NCP and every other party.

    Subhash Desai of Shiv Sena when quizzed about the scam said that action should be taken against those who participated in the scam. However it was later pointed out to him that he too was a recipient of the flats under the CM's quota which he sold later for crores.

    There is absolute corruption in India so nothing can happen because the core is rotten beyond repair


    Yes i agree to your point. Basically if we keep quiet and bear it we are party to it. if we shout against it maybe someday someone shall hear us. All big things happen small:) am i being poetic:)
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  • Originally Posted by rinku
    This is not just greed but its blind lust for money, there was a similar case in Delhi 5 years ago where the man was caught by CBI who had bought 80% of flats meant for EWS on bogus papers.

    We need to be proactive to ensure such things don't happen.


    yes the more we talk about it more alert we become
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  • Let me put it on record, even we are one of the victims. When we heard about it couple of months back we realized that it was a scam.
    My father has booked a MHADA flat 4 years back thru an agent of one of the contractor. We have paid 8% as an advance amount and have neither got our money nor any allotment. Agent is absconding and we were never told anything about who the contractor was.:bab (45):
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  • Dear Frnds,

    I think in India its difficult to diffrentiate between the victimis and culprit. Its a cycle some times we become victim and some times we are the culprit.

    I was wondering whether to call those 4000 families as victims or culprits. Yes they lost a substantially amount of their savings , but I think they were knowing that they are buying illegal flats which are not meant for them.
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  • service tax

    Hi all members,
    This is my kind request to all of you , spread this awarness among all the investors and end users in the field of residential apartment/ Real estate.
    Today i had made my concern to the President of india , Prime minister of India , Upa chairperson Sonia Gandhiji, Urban ministry , Supreme court of india , ndtv , utv business and many more .
    Please campain against this dictate of the govt./dealers/brokers/builders.
    following is the extract , i kindly request you all spread this information to as many as people all over , you all people send similar mail to all these above agenices and other relevant agency. its not just the matter service tax imposed on under construction building , under the current socio -economic structure where real inflation is so high , real earnings not rising at the same pace where school of fees of children is so high (although i m just married) but i can feel so much obligation on middle class people , rather providing benefits to the common man they are asking for more taxes.
    its sameful act on the part of govt. they have yet not clarified how they are charging service tax on lease rent other charges which accounts for almost 25% BSP.
    Please come together

    Here is the message to the Pm, the President and next mess is to media and supreme court-
    Respected PM Sir,
    Please look at the imposition of service tax on under construction residential flats , as it is overburden on middle class society. under the Current inflation pressure , all round high price life of middle class people is misreable, review the service tax imposition as greedy builders are directly imposing the same to end users with almost 4% of flat total cost. We love our india ,and this govt. too,take care the sentiments of your people,as in democracy people is the power


    Respected President Madam,
    Please look at the imposition of service tax on under construction residential flats , as it is overburden on middle class society. under the Current inflation pressure , all round high price life of middle class people is misreable, review the service tax imposition as greedy builders are directly imposing the same to end users with almost 4% of flat total cost. We love our india ,and this govt. too,take care the sentiments of your people,as in democracy people is the power.
    Madam Please direct the appropriate department and bring the cheers to your people , please help us from these greedy builders and contractors
    to the media and supreme court-
    Subject- Service tax of under construction building & stay order from honorable bombay high court.
    Dear Team,
    A middle class society of india ,residing in delhi as outstation person , booked a flat under construction in may-10 worth 40lakhs in noida for which possession would be in mid of 2012.after availing 30 lakh home loan. it was tough decision yet a dream to have own home encouraged me to go for this. For person like me , millions of middle class young india is under the similar situation , as to have a home in metro cities, even at this price by industry standard is cheap and categorized as part of affordable housing.
    Now from 1st of july-10 govt. had imposed service tax on under construction buildings and the minute study of the notification suggests that the same was applied from 2006 onwards , only the obligation is shifted from contractor to the builder, hence nothing new was there. taking this into account builders in NCR had started charging 2.575% on BSP & (10.36% on other charges which accounts for almost 25% of total cost-car parking , club housing , EEF,FFC,IFMS,LEASE RENT ETC) that means almost 4% of total cost of building, these builders are charging now.
    In the current Socio-economic structure where essential commodities prices had soared by 50% in a year , (and believe me i am a common man of india and by my experience in last 10 yrs suggests that cost of living have increased 5 fold not less, i am just 27 yrs now , what would be the future of young india- india rising? .
    Please take a look on this issue you have the power of media. Voice of people of india . Honorable Bombay high court had yesterday issued the stay order on the same .
    These builders and real estate people are too greedy and directly imposing the same on common people even after the stay order.
    This govt. of india is trying to squeeze every earnings of common people and distributing the same for the well wishes of upper and lower class of the society. We are also your child may be we don’t have power of rich nor the power of blind vote , but we are more than 50% of population of the nation. Today you don’t care , time will be there when you were not be in the position to take care.
    We don’t have reliable source of information in the real estate pricing and govt. of india is too slow to organize this sector on various benchmark (real housing index credit score of the builders etc) which will help on us , instead they are imposing extra burden on us.
    At least we the common man of india expects from the govt. of india to withdraw the service tax from the residential business as stamp and registration other govt. charges accounts for almost 10% of total cost of home.
    I don’t know in which country of the world where avg. cost of residential flat is more than 100 times of per capita income( in the US It is almost 5 times ) . Don’t divide India and Bharat , India could not sustain growth unless and until Bharat join the hand .
    I had send email regarding the same to the-
    Honorable President of india.
    Honorable Prime minister of india
    Sonia Gandhi ji
    Urban development ministry
    Etc.
    This is the voice of common people of India
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  • Originally Posted by Digvijay
    Dear Frnds,

    I think in India its difficult to diffrentiate between the victimis and culprit. Its a cycle some times we become victim and some times we are the culprit.

    I was wondering whether to call those 4000 families as victims or culprits. Yes they lost a substantially amount of their savings , but I think they were knowing that they are buying illegal flats which are not meant for them.


    Digvijay,
    In a typical MHADA launch they announce a lot of say 300 flats, there will be almost 2500 people applying for it. Some of them apply through groups and network of friends and most of them apply thru agents or directly. Once the flats are ready for possession allotment letters are given to the ones who are successful ones and non successful ones get their money back. Now if there is a scam in the making (which obviously will not surface)both successful and non successful applicants are victims as the guys who got allotment letter never get possession, and the guys who were not successful never get their money back............ and guess whos the culprit:bab (34):
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  • 4000 Flats.... its just 4000 flats ina city with a population more than 20000000 which is 0.02% of the population and less than 0.0004% population of India.... what impact do you expect.... every builder in Noida builds 4000+ flats these days!

    Originally Posted by Munish Malhautra
    Today HT has exposed THE GREAT PROPERTY SCAM where almost 4000 flats which were supposedly for needy people were being alloted to politicians and their families since 1995. This is not the end of it most of these flats have been sold at crazy prices by these politicians and their families. Some experts are valuating this scam in excess of 10000 crores. Similar things may be happening in other cities but are still not exposed. Another pointer to RE bubble.

    Since Mumbai is the Commercial Capital of India, Will this have an impact on the RE prices across India?
    Look forward to your opinion and poll.

    PS- This is a generic poll related to RE across India hence has no correlation with Noida forum. Anybody can poll.
    CommentQuote
  • Originally Posted by vishal1880
    4000 Flats.... its just 4000 flats ina city with a population more than 20000000 which is 0.02% of the population and less than 0.0004% population of India.... what impact do you expect.... every builder in Noida builds 4000+ flats these days!


    As per census(registered records) population in 2009 was 13 Million( couple of million would be not registered:)) and out of that 55% lived in slums, which cover only 6% of the city's land. Now the % will move up considerably as to how many people could get accommodated in the land which got occupied to make 4000 flats for politicians and their families.
    Idea is not that these flats will solve world hunger, point is that our chalta hai attitude against crime for which we all are to be blamed has to change atleast a wee bit. This huge amount of wealth that gets generated by scams goes into a handful of pockets creating the divide(between rich and poor) even bigger.
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