Wednesday, February 8, 2017

DSK is struggling to get his ducks in a row

A conversation with DSK:



I was considering myself as a self made man. But, recently, I have accepted that I am just a puppet in the hands of God. However, my Sade-Sati will be over soon & very quickly things will fall into place. DSK of D S Kulkarni Developers Ltd. said.

But my blog readers who are your fixed deposit holders admire your efforts. They appreciate you for meeting & listening to them. They are seriously considering your solutions. And they believe that you will come out of this with flying colors. I said.

My 14,000 fixed deposit holders are my partners. My real estate business runs on 3 wheels. 1) Bank loans 2) Fixed Deposits 3) Booking amount & home loan disbursements of the flat buyers.

To overcome the slowdown in real estate business, at the end of last year, I came with DSK Master Plan and offered 1 free home on every one home you purchased and got nearly 800 bookings. But negative sentiments took it's toll. Most of the bookings were cancelled.

And then I met with an accident. I survived. But fixed deposit holders panicked. Some 100 core deposits were withdrawn.

Then came the demonetisation - which worsened the situation.

But I told my partners - my fixed deposit holders - for a time being - I am not in a position to pay your interest or return your deposits. But don't worry. Wait for sometime. If you can't - no problem. Instead of your deposit amount - I can give you a flat - a car - choice is yours.

You know? Most of my partners - fixed deposit holders - said that - "DSK, we trust you" - "DSK, we are with you". DSK said.

Yes. I know. A few minutes ago, in your reception, a few fixed deposit holders expressed the same sentiments. I said.

They are with me for the last 30 - 35 years. They have always received their interest payments on time. They know that I am grateful for their faith in me & for their support in the growth of my business empire.

They know that - even now - how I am trying my best to bring in some a few thousand crores investment from London. In these trying circumstances - what I need is your support. DSK said.

That's why I am here! And I am very much impressed with your passion - your fighting spirit - to overcome the current obstacles. Your frank, honest & direct words have won my heart. I told DSK and took his leave.

After the conversation with DSK, I felt that I was prepared to advice my reader who had asked me - Should I accept a flat in DSK Sadaphuli at Talegaon or at DSK Nandanvan / Mayurban / Chaitraban / Pushpaban at Pirangut against my fixed deposit?

In the last few days, along with all these projects I have visited Hi Bliss Bungalow Plots at DSK Dream City on Solapur Road, DSK Vedant near Magarpatta and DSK Nabhangan - DSK T 35 - DSK Aanandghan at DSK Vishwa Dhayari on Sinhagad Road. Here is my report -

Visit DSK Sadaphuli 1 BHK & 2 BHK Flats at Varale Talegaon Dabhade:


There was no site sales office at DSK Sadaphuli at Varale Village. So I visited the site engineers' office and requested him to show me the flats available for sale.

Out of the 3 buildings - A 1 & B Buildings are 100% sold out - A building is 10% booked - the engineer told me and asked - "What is your requirement?".

When I told him about 'a flat against the fixed deposit offer', he told me that I should go for a 1 BHK Flat which costs around 30 lakhs.

Then the site engineers took me to the 2nd floor of the A Building. A couple of people were working at the site. RCC structure, brick work of the entire building was ready and external plaster was going on.

Remaining work - internal civic, electrical & plumbing work, site infrastructure, installation of lifts, development of amenities etc - will be complete in 6 - 12 months - the engineer said.

When I asked him why are there 2 clubhouses - he told me that - for the 'technical reasons' 3 buildings in Sadaphuli are shown as 2 different projects - which share a common main entrance!

Most of the flats in Sadaphuli are booked by Mumbai investors. As a weekend home - second home. Pollution free environment & greenery are the main attractions.

Sadaphuli has a good potential for appreciation because it is located on the Proposed D P Highway which will connect Chakan to old Mumbai Pune Highway. The engineer said.

"Means a weekend home in Sadaphuli will eventually become a highway home!" - I said. "Yes!" - said the site engineer.

Varale Village is on the banks of highly polluted Indrayani River. Villagers use the river water only for the farming & domestic usage. They don't drink it.


Visit 1) DSK Nandanvan, 2) DSK Mayurban, 3) DSK Chaitraban, 4) DSK Pushpaban at Aditya Nisarg, Pirangut:


There was a salesperson at DSK Nandanvan Pirangut. I told him about the offer. A flat against 30 lakh fixed deposit.

He showed me the sample flat at DSK Nandanvan. Gave me a quotation of a 1 BHK flat for 34.98 Lakhs at DSK Pushpaban, next to DSK Mayurban. Possession December 2018.

At DSK Nandanvan site a couple of workers were cutting marble for the window seals.

The salesperson offered me to show the adjoining DSK projects - DSK Mayurban and a twin project - DSK Chaitraban & DSK Pushpaban. Of course, there isn't much to see - RCC structure of DSK Mayurban is ready upto some 8th - 9th floors - a plinth of DSK Chaitraban & DSK Pushpaban is ready - the salesperson told me.

I thanked for the offer & told him not to bother.

I visited the stalled sites of DSK Mayurban, DSK Chaitraban & DSK Pushpaban. Then walked down to Pirangut gaon. Wondering about the fixed deposit holders and flat buyers of DSK.


Visit D S Kulkarni Developers' 1) DSK Vishwa T35, 2) DSK Nabhangan, 3) DSK Aanandghan, at DSK Vishwa Dhayari, on Sinhagad Road:


After visiting DSK Sadaphuli at Varale Talegaon & 1) DSK Nandanvan, 2) DSK Mayurban, 3) DSK Chaitraban, 4) DSK Pushpaban at Aditya Nisarg, Pirangut, I was curious to visit DSK Vishwa T35, DSK Nabhangan & DSK Aanandghan at DSK Vishwa at Dhayari on Sinhagad Road.

In December 2013, I have written a blog on the launch of DSK Anandghan. But I have never visited DSK T35 & DSK Nabhangan - which were launched in DSK Master Plan event in December 2015.

On the day I visited DSK Vishwa, there was a staff meeting at the head office of D S Kulkarni Developers. There was no salesperson at the marketing office. So I just looked around, took some photos & had a good talk with the few real estate agents in DSK Vishwa. All of them were DSK fans.

One real estate agent told me that Godrej has purchased DSK T35 project. DSK Dream City is the main reason for the cash crunch - of course, slow down - lack of bookings - added fuel to it - the other agent said. It's difficult to do real estate business without taking politicians' money - some agent said. One agent blamed DSK for charging irrationally high property rates. But all of them were sure that DSK will come out well.

Site of DSK Vishwa T35 at DSK Vishwa Dhayari
Site of DSK Vishwa T35 at DSK Vishwa Dhayari
Site of DSK Nabhangan at DSK Vishwa
Site of DSK Nabhangan at DSK Vishwa
Site of DSK Nabhangan at DSK Vishwa from the top terrace of DSK Varun - Pavan Society
Site of DSK Nabhangan at DSK Vishwa from the top terrace of DSK Varun - Pavan Society
Site of DSK Nabhangan at DSK Vishwa from the top terrace of DSK Varun - Pavan Society
Site of DSK Nabhangan at DSK Vishwa from the top terrace of DSK Varun - Pavan Society
DSK Varun - Pavan Society at DSK Vishwa Dhayari
On the notice board of DSK Varun - Pavan Society at DSK Vishwa Dhayari
At DSK Vishwa Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Saptasur at DSK Vishwa Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
DSK Aanandghan, at DSK Vishwa, Dhayari
At DSK Vishwa Dhayari
At DSK Vishwa Dhayari

Visit Hi Bliss Bungalow Plots & Waterfall Residences at DSK Dream City on Pune Solapur Highway:


I love the concept of DSK Dream City. I enjoy meeting salesperson at DSK Dream City. I admire his passion & professionalism. I enjoy the golf cart ride to the site of Waterfall Residences at DSK Dream City. But this time I visited DSK Dream City for Hi Bliss Bungalow Plots.

The location of Hi Bliss Bungalow Plots is very premium. Near the dancing fountain at the beginning of DSK Dream City. Site development work was going on when I visited it.

On the plot of approximately 25 acres, DSK has launched 165 bungalow plots. Sizes are in the range of 3600 sq ft to 9500 sq ft. Approximate rate is 3,500 per sq ft. All inclusive prices of the plots are Rs. 1.3 Crore onward.

I was glad to see the construction activities at the Waterfall Residences.


Visit DSK Vedant opposite DSK Sundarban behind Amanora Town Center Hadapsar:



While coming back from DSK Dream City, I visited DSK Vedant. A security guard was there at the site. I am here to check the construction progress - I told him. He thought that I had booked a flat.

See this....how thick are these steel roads.....truck loads of cement & thousands of these thick steel bars are gone into that foundation of the building - pointing at the plinth of Vedant he said.

Construction is stalled for a long time....but don't worry....don't think of cancelling your booking.....DSK saheb will construct these buildings.....money is the problem....but his niyyat is good...the security guard said.

Should I accept a flat against my fixed deposit with DSK?


Can you guess what advice I would have given to my reader who asked me - "Ravi Karandeekar, should I accept a flat in DSK Sadaphuli at Talegaon or at DSK Nandanvan / Mayurban / Chaitraban / Pushpaban at Pirangut against my fixed deposit?"

What would be your advice if some fixed deposit holder asked you the same question?

Please, share your views in the comments.

Related Story:


1) Investing in DSK Dream City Pune

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I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market.

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For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

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26 comments:

  1. 1. Lets look at some sample maths - a) 30 lakh in company deposit @ 9% return = 2.7 lacs - risk of default to 100% principal .
    b)24 lac(80%) in psu bank @ 8% return = 1.92 lacs + 6 lac(20%) @ 13% return in same company stock = 0.78 lacs giving total of 1.92 + 0.78 = 2.7 lacs - risk of default limited to 20% of principal with same return .
    If one believe's in a company - it is much better to invest a part in its stocks instead of going 100% in its deposits .
    2. a) How is it possible to build flats without funds ?
    b) If the company cannot sell its own produce what is the consumer going to do with the produce himself ? sell it to whom ?

    Ravi what is your opinion ?

    ReplyDelete
    Replies
    1. " How is it possible to build flats without funds ?" - Very true, P B.

      Delete
    2. " If the company cannot sell its own produce what is the consumer going to do with the produce himself ? sell it to whom ?" - Very true, P. B.

      Delete
    3. "it is much better to invest a part in its stocks instead of going 100% in its deposits." - Very true, P. B.

      Delete
  2. There could be many builders whose 'Niyat' is good but they are not able to deliver because of lack of funds. Ultimately what matters to the buyers is the end product. Buy only if you have a guarantee of the end product, do not believe any of the promises/ schemes.

    ReplyDelete
    Replies
    1. " Buy only if you have a guarantee of the end product, do not believe any of the promises/ schemes." - I completely agree with you, Tejas.

      Delete
    2. Absolutely, and niyaat can change as water level rises above the nose. Remember the case of the monkey mother who puts her child under her feet to survive the rising waters.

      Delete
    3. You are absolutely right about "Niyyat" of the builder, KnowTheTruth

      Delete
  3. So one more bankrupt builder, DSK - Khishala khadda karnaari mansa ! KUL, Paranjape, Mantri, Darode-Jog, Mittal, Phadnis etc. all are on same path.

    Problem with builders is not sade-saati but greed for saat-bara !

    When greed overtakes profits, person goes bankrupt because then his power to differentiate between good & evil goes out of the window.
    DSK is facing nothing but law of karma. How many buyers will he cheat ? It has to come back one day.
    Ravi, you posted pics of DSK Vishwa. How about posting things like not giving flat buyers all promised amenities even after so many years, poor water supply, not doing conveyance deed even after 15 years etc ? Ever wondered how that T35 project got sanction ? 35 floors building in mountainous area where existing buyers are already having water shortages ! Doesn't DSK has cases filed against him by flat buyers ? This chap acts as if he is some saint who has come to Pune from Satyuga.

    We have also seen him dabbling in politics, first as BSP (Behenji corrupt party) candidate for Lok Sabha in 2009 where he lost, then he tried for BJP ticket which was refused to him in 2014, so he went to Khujliwal's AAP because he didn't get any response from CONgress. So he is also a top class dal-badlu ! All details here -

    http://dnasyndication.com/showarticlerss.aspx?nid=yIv8GDij2q9R0lBuLYghAvaBI55leGY4XEMQLb2R4oQ=

    What answer DSK has for flat buyers who have booked & stuck as project is not moving properly ? Builder takes money, so it's his duty to deliver the flat. Hell with what issues he is facing, that thing has nothing to do with flat buyers hard earned money. Do these crooks accept 3-4 years delay in payments from buyers ? Then why we should accept his saas-bahu story ? Pay back flat buyers money even if it means selling off your group companies. Sell DSK Toyota, DSK Infocom, DSK Hyosung bikes etc. & complete the damn projects or pay back flat buyers with interest.

    If you go to watch belly dance & dancer doesn't turn up, isn't the money refunded alongwith apology ? Here builders are neither doing belly dance, nor refunding money.

    "should I accept a flat in DSK Sadaphuli at Talegaon or at DSK Nandanvan / Mayurban / Chaitraban / Pushpaban at Pirangut against my fixed deposit?"

    - This is like asking, is it better to be hanged or to get shot in the head !

    Btw, Ravi, while visiting these projects at remote locations at Pirangut, Talegaon did you see any leopard, elephant or giraffe ? You should share these pics with Nat Geo Wild !

    Some useful news -

    Unchanged repo rate leaves home buyers unconvinced about banks being flush with funds -
    http://www.moneycontrol.com/news/real-estate/unchanged-repo-rate-leaves-home-buyers-unconvinced-about-banks-being-flushfunds_8462121.html

    Flats sales decline in Oct-Dec quarter -

    Maximum decline was noted in Chennai, Pune and Bengaluru. Increase in unsold stock was led by Mumbai Metropolitan Region, Pune and Ahmedabad.
    This also impacted the efficiency and inventory levels climbed to 57 months from 46 months in the last quarter. Chennai, Pune and Bangalore have been particularly slow in offloading their inventory, said Liases Foras.

    http://economictimes.indiatimes.com/wealth/real-estate/residential-sales-in-october-december-across-top-8-cities-dip-15/articleshow/56875962.cms

    ReplyDelete
    Replies
    1. ha ha ha Monk, u rock man, bang on! I only know one thing, any business has to be run on fulfilling whatever you have committed or else dont be in that business! Rest all is humbung; btw are the banks going to accept this logic if you are a defaulter of banks? It will be interesting to know monk's as well ravida your view what about bank loans of this group?

      Delete
    2. "any business has to be run on fulfilling whatever you have committed or else dont be in that business!"
      - Agree 100%. Infact, real estate is in bad shape because 99% of builders don't keep their commitment and treat customer not as a king but as a bakra.

      "btw are the banks going to accept this logic if you are a defaulter of banks?"
      - Simple answer - No. But it's easier to fool flat buyer or depositors than bank so all this emotional drama of DSK.
      Several e-auctions are now taking place for selling of mortgaged properties, from investors as well as builders. Banks like SBI have even tied up with portals like magicbricks to sell such seized flats.

      And with high NPAs, banks are going after builders too. Since you yourself are builder Sanjay D, I am sure you must be knowing lot more about this in Pune real estate circle. Not just banks, even vendors payment has been defaulted upon by builders.

      You deliver a value for money product on time & it will sell irrespective of whether interest rates are 8.5% or 10.5%. Had interest rates been the only factor, Audi which runs offers of 0% interest rates would be selling more cars than Maruti with 10+% interest rates ! Affordability is the cake, interest rates are just like the cherry on top of the cake.

      No more cuts in interest rates for now, says RBI, citing inflation concerns -

      http://www.hindustantimes.com/business-news/no-more-cuts-in-interest-rates-for-now-says-rbi-citing-inflation-concerns/story-EyzsWPkQP2DP79VR9AYV2I.html

      Delete
    3. Yes Monk,I am builder & I am in the business to make some money but only by fulfilling my commitments to my clients, which unfortunately many builders deviated from! I am a small timer but stick to basics!U are right about interest rates, its the final product & its worth is the only criteria to sale the flats now & thats bet thing happened to real estate!Now the builders are blaming demonetization as well other govt rulings but its the behavior of builders only which has driven away the genuine flat buyers from booking in on going construction mode! As the builders have used this booking money for every other avenue than utilizing it to fulfill the commitments towards completing the construction! These are the fruits of their own tree in a way!The only way to regain the trust & confidence of the home buyers is deliver what you have take money for!As days are not away where only ready possession will sale barring few locations where still demand is more than supply!

      Delete
    4. "Problem with builders is not sade-saati but greed for saat-bara !" - well said, TheMonk.

      Delete
    5. Yes, TheMonk, all fixed deposit holders are facing this - is it better to be hanged or to get shot in the head !

      Delete
    6. "How about posting things like not giving flat buyers all promised amenities even after so many years, poor water supply, not doing conveyance deed even after 15 years etc ?" - yes, this is the subject of a special blog, TheMonk

      Delete
    7. "I am a small timer but stick to basics!"
      - It's better to be small builder who can be trusted rather than being a so called big builder whom buyers hesitate to deal with, Sanjay D. What's important is how strong are the finances. Having a revenue of 100 Cr with no or negligible debt is better than having revenue of 1000 Cr where the firm is highly leveraged. What you then have is builders like KUL, Marvel, DSK etc. Sustainable, profitable growth is important, not just the total order size.
      Hope you have a better quality of sleep than these junk builders out there to make buyers bakra.

      "yes, this is the subject of a special blog"
      - Thank you Ravi. Will wait for such blog.
      Btw, how about having a blog with list of abandoned projects or projects which have been delayed by 2 years or more ?

      Delete
    8. ha ha yes monk, i have a peaceful sleep & so does my clients, less they may be in numbers but u rightly put!win win situation is where builder & customers both are at peace of mind with the deal; very important aspect!

      Delete
    9. To overcome the slowdown in real estate business, at the end of last year, I came with DSK Master Plan and offered 1 free home on every one home you purchased and got nearly 800 bookings. But negative sentiments took it's toll. Most of the bookings were cancelled. ...
      Monk what say about this?

      Delete
    10. "I came with DSK Master Plan and offered 1 free home on every one home you purchased and got nearly 800 bookings. But negative sentiments took it's toll. Most of the bookings were cancelled."

      - Sentiments don't change overnight. Fact is people later understood that DSK has made them ulloo, & hence cancelled the booking.
      Funny thing is yedas first booked only to realise later that they have officially become yeda.

      Delete
  4. Namaskar Ravi Sir ,

    Good to see you at DSK sites.

    Even I've been at DSK's Pirangut site.

    In early 2016 DSK quoted me 55 L for Mayurban/Chaitrban 2 BHK.

    Me : " Why are you charging 55L for under construction property at Pirangut ? "

    Agent : "Pirangut's price has increased , we are getting calls/visits every day , this is the best deal !! "

    Me : "But there is no infrastructure , no road , no social connect , no shops , medical facilities near by .
    Also there is no government road which connects from ghat to your site , but still you are charging 3800-4200 psf here !! "

    Agent : " We have taken the road on lease it belong to private villa's road .
    Also new Tar road will come behind the site which will directly connect to Ghotawade phata.
    Rate is very reasonable once this project will develop you'll get all facilities near by. "

    Me : " But property near Ghotawde phata is around 2500-3200 psf , atleast there are few chai walas, wade pav vala ,small vegetable market to see "

    Agent : " That Pirangut is different , this side will first get developed , and will be incude in PMC soon !! "

    Me : " Oh really !! ? Thats good to hear. Ok sir, I'll get back to you after some study"

    Now I am really happy not having to book flat there , nothing has changed there.
    Builder was talking as if Girish Bapat came and told him that all fringe villages will be in PMC. Big joke !!


    My Observations :

    * Flats sale have declined due to fear, demonitization , strange RERA act. This has resulted in decline of sales and new launches.

    * DSK in ABP Majha once said that builders have to be realistic in terms of profit. He said that builders should be happy with 8%-12% profit per flat sale.
    But he himself is not following it.

    * Government is doing its part in making the system clean , RBI is doing its duty at its best for the country's sake , Banks have cut interest rates for Home loans.
    But these stubborn/corrupt builders are not at all reducing the price. Thats why they are facing stalled projects.

    * Builders act like , this is the best time to invest else you'll miss the bus !!
    Oh common guys if that was the case then when the bank had reduced its home loan rates , then there should have been a long line outside the bak to avail loan.

    Even if home loan comes from 8.5% to 7% , it wont at all make any difference !! Reducing only 3L out of huge loan of 20-30 years is nothing , because you any how will bw slave of banks.

    * Business environment is changing IT , automobile and many indirect business is slowing. And it is getting impacted in the sales figures.




    Suggestion : Its better to invest the money in FD of bank/stocks/mutual funds depending on the risk profile of the investor.


    ReplyDelete
    Replies
    1. I completely agree with you, Ramesh! Thanks for sharing your observations, views & experiences.

      Delete
  5. Resale prices down 30% as realty sector feels the heat -

    The difference in price between primary and secondary residential markets is increasing, following the over-supply of properties and eagerness of investors to cash out, making re-sale properties a good option for home buyers.

    Some markets like the Delhi-NCR, Pune, Chennai and outskirts of Mumbai Metropolitan Region, have been showing substantially lower price in the secondary market than the primary market.

    http://www.thehindubusinessline.com/news/real-estate/real-estate/article9496294.ece

    So, why buy from builder under-construction flats when ready possession flats are being offered at cheaper rates whose prices are going to fall even further ?

    ReplyDelete
  6. guess if the builder was Maratha or Sindhi Marwadi, Ravi would have started writing with some shit heading ,,arrogant way,
    brahmin helping brahmin, toooo racist

    ReplyDelete
    Replies
    1. Hi Unknown ,

      Kindly grow up in your thoughts , this is the reason why India is behind !! FYI Ravi sir gives honest & practical views about the builders and real estate scenario.

      Ravi Sir is the only person here who gives real views of real estate of Pune. Most of so called agents misguide people who want to purchase their home here but Ravi Sir is the person who goes from site to site like a aam admi by PMPML/local train to tell the readers/home buyers whether it is right decision or not.

      Of course he may suggest people with options , but at the end its peoples decision to buy or not. Ravi sir's blog is reference to real estate business's reality . He wants WIN-WIN situation with home buyers and Builders.

      Delete
    2. I agree with Ramesh; ravida has laid down facts, its up to readers to decide action plan!

      Delete
    3. Though I don't agree with you, I thank you for sharing your views, Unknown.

      Delete