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Case Of Fleecing By Real Estate Developers 'Vatika' Of Gurgaon

Postby s1joshi » Sat Mar 19, 2011 10:46 am

From Mahendra Kumar Gupta Ji


Seema Joshi ji,
For your information and circulation

M K Gupta, 9810550172

The Central Government is maintaining since 2009 that it will bring a bill to regulate the real estate developers and taking advantage of govt. failure, these developers are fleecing the customers. The proposed bill provides jail term to real estate developers for cheating customers and it is perceived that the builder lobby is behind the delay in the enactment of this bill.

Vatika Group, Gurgaon that claims creating lasting value offered hundred of plots to the customers in thousand park of its Infotech City – the city of vision - scheme at Jaipur in June, 2005. Even after about 5 years, it has not given possession to any purchaser till date though it promised to hand over the same in 3 years i.e. by June 2008. Sources say that the high tension lines are passing through the area which was marked to be carved-out for these plots and they even suspect that the Company has not even been able to purchase for thousand park till date. Though, as per plot-buyers agreement, (para C, page 5), Promoters promised that if they are not able to hand over the plot to any allottee for any reason, then they will be liable to refund of amount with 9.00 interest. M K Gupta of Delhi, a purchaser of 180 sq. yds plot says that he has come to know that the Company is not honouring this and other clauses of the agreement and not refunding the amount with interest, despite repeated letters. Gupta has also came to know that the Vatika has not refunded to any purchase despite repeated requests from its clients. Most of the clients have paid up to 10 lakhs for the plots.

M K Gupta, 9810550172.
Sector 6, Dwarka, New Delhi.

News Story in “The Indian Express”, October 07, 2009, (Delhi Edition).

Real estate developers may face jail terms for cheating customers

ENS Economic Bureau

New Delhi : In what may bring relief to housing aspirants across the country, chances of home buyers being cheated by realty companies might be minimised as the proposed real estate regulator will not only be empowered to penalise errant developers by imposing fines but also recommend imprisonment of up to three years if they are found guilty. The information, to be posted on the regulator’s website, will also mention the names of blacklisted developers.

For any housing project exceeding 1,000 square metres or four apartments, the builder will have to procure a registration certificate from the regulator after furnishing all relevant project details and permissions from the competent authorities. This includes the number and size of plots, layout plan, carpet area and plinth area of the flats or apartments and the facilities provided. A project can not be marketed or advertised without the registration certificate. The government has prepared a draft of the model Real Estate (Regulation of Development) Bill, and has invited views of all stakeholders by November ahead of giving it a final shape.

The model bill is quiet on the rights and powers of those already residing in builder apartments. “The idea is to safeguard the interests of future home buyers as the current residents are covered under other relevant government acts and rules,” said a housing and urban poverty alleviation ministry official. The ministry, which drafted the model bill, has circulated it amongst all stakeholders, inviting their comments by November 15.

Safeguarding the interests of buyers, the regulator makes it mandatory for the developer to enter into a sales agreement ahead of taking the deposit from a potential buyer and provide stand-in warranty for the project for two years after handing over the possession for any construction related problems. Any buyer wishing to quit the project due to delays or false promises shall be returned the entire investment along with interest at the existing rate.

The builder or promoter of the project will have to submit a timeline for providing various civic services like supply of electricity and water, sewerage and drainage systems, lifts and fire-fighting equipment. Value of cost escalation in projects, if any, will have to be arrived at by mutual consent between promoter and buyer. The names and addresses of all middlemen or brokers will have to be maintained on the website. In case the developer fails to provide any of the services listed at the time of purchase, he will be asked to compensate the buyer. The builder shall furnish a bank guarantee equal to five per cent of the estimated cost of the development works to a competent authority, which may discharge it on recommendation of the regulator.

The promoter will have to obtain an insurance policy for at least five years after the construction activity is complete for apartments against loss or damage by natural calamities for the cost of replacement of such property and loss of life and bodily injuries suffered by persons occupying the apartments.

WHAT THE REAL ESTATE REGULATOR COULD DO Penalise errant developers by imposing fines if they are found guilty Recommend imprisonment of up to 3 years Post names of blacklisted developers on its website Order return of the entire investment along with interest at the existing rate if a buyer quits the project due to delays or false promises

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Postby s1joshi » Wed Apr 06, 2011 10:24 am



M. K. GUPTA, Free Lance Journalist

The Private builders and promoters are notorious in duping the public by making false promises and this write up present the readers an opportunity of knowing their tricks. From this, it will be clear that even the reputed promoters are not legging behind in the game of taking the customers for granted reminding us that being a reputed promoter does not mean honest too.

Vatika Group, Gurgaon claiming creating lasting value
offered hundreds of plots to the customers in thousend park under its much published scheme named Infotech City Jaipur in June, 2005. The group promised to hand over possessions of plots in three years but even after close to six years, Vatika has not given possession to them. The Company in Oct. 2006 has re-assured by sending letters to hand over possession within 24 month at the time of demanding the last installment of 20 per cent but has not given the same till date. After a gap of about 4 years, in another letter dated 30th July, 2010, Surjit Ray, Sr. Manager, Client Services assured the purchasers, “in the area where your plot is located is progressing at full swing, we expect to handover all the plots within the next 12-14 months time period depending on the location of your plot”.

But when there was no word on the handing over the possession of plots till January this year, I visited the Company’s office on 27th January, 2011 and Mr. Pankaj Adhalaka, CRM PERSONNEL informed that the possession could not be given as there was some problem in the handling over land by the farmers and in shifting of the high tension lines over this area. From this, it appeared that either the Company had not been purchased the land or has been able to effect the change of land use. The Company is maintaining the studious silence on the query on this issue and RTI has been filed to Jaipur Development Authority to know the factual position. But even in Authority, it appears that the Company has its influence as after little less than two months, he had received no reply yet. To other such unfortunate fated allottees are Vimal Dev who has paid up to 80% and the other is Praveen Panwar under deferred plan and had already paid 40% of the price.

Though, as per plot-buyers agreement, Promoters promised that if they are not able to hand over the plot to any allottee for any reason, then they will be liable to refund of amount with 9% interest but the Company is not honouring that commitment too which is tantamount to force the clients to agree for relocation of site. Even at the relocated site, the plots are not ready for possession till date. Most of the clients have paid close to Rs. 10 lakhs i.e. 95 per cent of the price to the Vatika.

Now, the allottees are exploring the possibilities to try the Company for cheating and fraud.
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