Sunday, June 19, 2016

My builder's unscrupulous tactics

Lies, Broken Promises & Dishonored Cheques:




In January 2016, Mr. Amey Prakash Lokhande, the builder of Sainath Palace at Wagholi, signed an MOU about giving possession of my flat in March 2016.

"If I can't give possession in March 2016 - don't worry - I am a very kind person - I will pay you the rent!," giving away the post dated cheque for rent, Mr. Lokhande, my builder, promised.

In March 2016, my builder didn't give possession. Because he couldn't complete the project.

My builder couldn't complete the project because he never started the construction.

So I deposited the builder's cheque for the rent of April 2016.

My builder's cheque was dishonored.

It means that the MOU & the cheque was nothing but my builder's unscrupulous tactic.

One more unscrupulous tactic.

In the July 2014, when I booked the flat, Mr. Lokhande, my builder, promised to give possession in March 2015. And mentioned the date in the flat agreement.

I believed in him because the structure of the 4 story single stand alone building was ready. Completing internal work of the 16 flats by March 2015 looked very much possible.

But that was a lie.

From July 2014 to March 2015, my builder did only the POP.
Otherwise for the last 2 years the construction is completely stalled. Jaise Thhe. No progress.

In the last 2 years, my builder has done only 4 activities.
1) He has collected my home loan disbursements. Nearly 90% of the flat price.
2) He has given promises about giving possession. March 2015. December 2015. March 2016.
3) He has broken all promises.
4) He has lied again and again.

What all my builder, Mr. Lokhande, is doing - is preplanned - premeditated - business tactics.

I am left with no choice but to suffer.
Says Mr. Pandurang in the above Marathi Video Interview.

What say you?

Is the delayed flat possession
- results of unfortunate circumstances or
- the result of the well planned business model of the big & the small builders in Pune?

Please, share your views in the comments.

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7 comments:

  1. Construction work done - 70%
    Buyer pays - 95%

    Simple question -

    Why would builder complete 30% work for 5% payment ?

    As a buyer, above equation is better or below one -

    Construction work done - 100%
    Buyer pays - 100%

    If you agree with this as a buyer, buy ready for possession flat with all approvals & infrastructure in place else stay on rent. Buy what you see. Ek haath se do, dusre haath se lo. Deal on equal terms. Simple.

    And as far as this buyer is concerned, he should file a case in consumer court without any delay to get quick redressal for his problem created by third class builders of Pune.

    ReplyDelete
    Replies
    1. Hi,
      Yes I agree with you that we all should go for ready possession flat. But when as a buyer you mentioned you are looking for ready to move flat. All seller look at you like you are very reach person and ready to pay the amount coming out from their mouth. Another fact is "I don't think lot of people will be able to afford buying ready possession home at current price what builder or broker are demanding".

      Kiran
      Not buyer yet.

      Delete
    2. Hoarders & builders are there to loot you, it's upto buyer to decide whether he wants to stay as 'Ullu in CREDAI-land' !

      So why the hurry to BUY A FLAT WHEN YOU CAN RENT IT ?
      From my experience, I would say that more desperate you look, more is the arm twisting by seller/builder. I go to buy in such a way that I don't give a damn even if flat is not purchased. Once this message is sent across, automatically things fall in place.

      And financially speaking, renting is a fantastic option. Even the office where I work is a leased out space despite the company easily affording to buy it outright ! So why buy when renting option is there ? Infact, in cities like Berlin,Germany or Vancouver,Canada so many people prefer to stay on rent. In Berlin, I saw a chap who stayed in rented house but was driving BMW M5 !

      Also, it is naive to think that buying a flat improves quality of life. This is just psychological. Having lesser EMIs & more investments, going on holiday, ease of changing of job, office etc. is always better than pay huge amount of income towards flat & then get stuck with it which is highly illiquid with long duration loans which affects other goals of life.

      So one should buy only when other aspects are not being compromised, till then enjoy staying on rent for cheap cost. For me, I will look at ready possession flats with all approvals only when prices fall by atleast 50%, till then rent.
      Zero emotions in financial decisions. Simple.

      Delete
    3. Home prices set to fall; Mumbai, Pune, Delhi set trend :

      http://www.financialexpress.com/article/industry/companies/home-prices-set-to-fall-mumbai-pune-delhi-set-trend/283820/

      Delete
  2. i think, lot of people are facing the same issues in Pune. Even I am facing the same issue of delayed possession. We had been been verbally told that possession would be done in Nov 2015, then Mar 2016 and then Jun 2016 verbally and with 100 % completion assurance. Now its Jun2016 and building is still not ready.

    They are now saying the possession would be done in Dec 2016. But we are not sure about the same. We have been asked to provide the written confirmation on the same, but he is taking time to provide it.

    He is also changing the internal fixtures in the flat that he is promised and shown in the sample flat. He is not giving the grills to the windows. For grills, he is saying that it was not promised by him. My question is, is window grill not part of safety measurements for a the people staying in the flat.

    As per the agreement the possession date is mentioned as Jun 2016 with 6 months buffer period to cater delays in possession due to any unforeseen activities. In this case, should we wait for buffer period or should we demand for rent amount starting from Jun 2016.
    When is the best time to contact the consumer court?

    ReplyDelete
    Replies
    1. 1. "They are now saying the possession would be done in Dec 2016. But we are not sure about the same. We have been asked to provide the written confirmation on the same, but he is taking time to provide it. "

      2. "As per the agreement the possession date is mentioned as Jun 2016 with 6 months buffer period to cater delays in possession due to any unforeseen activities."

      - I am confused due to these 2 statements. If June 16 + 6 months is in agreement, you don't need any additional stuff from builder in writing.
      And if June 16 is date mentioned in agreement, you can't challenge it in court even if builder has given verbal assurance date as Nov 2015.
      As per agreement, if last date is Dec 2016, you have no choice but to wait till this date after which you can take legal action against builder.
      Always see what is mentioned in agreement & not verbal assurances.

      "He is also changing the internal fixtures in the flat that he is promised and shown in the sample flat. He is not giving the grills to the windows. For grills, he is saying that it was not promised by him. My question is, is window grill not part of safety measurements for a the people staying in the flat. "

      - There is a clause mentioned that builder can change, modify, add, delete etc without any prior intimation.
      And many builders write as xyz or equivalent, abc or equivalent which offers them loophole to get away by offering something of cheaper grade.
      If in agreement, window grills are mentioned, builder has to give it though you don't have any say on quality of it. It is for all these reasons only ready possession flats should be preferred.

      Nonetheless, I would suggest you go & show your agreement to good property lawyer & inform him what builder is actually doing on site. Only after looking at your agreement, any proper conclusion can be reached on steps to be taken further.

      Delete