Review of Vilas Javdekar Developers' Home Loan Offer
"Pay 10 % Now and Get it Back by Possession"
for Worthless 1 BHK & 2 BHK Flats in Palash Boulevard at Pirangut:
Is Mr. Deepak Parekh Dead?
Thank you Mr. Madhur Ingalhalikar, Director, Business Development, Vilas Javdekar Developers (www.javdekars.com), for bringing to my notice that 1 BHK & 2 BHK Flats in Palash Boulevard at Pirangut are worthless properties!
Otherwise, I was only concerned about your "Pay 10 per cent Now & Get it Back by Possession" offer.
I wanted to congratulate Mr. Aditya Vilas Javdekar for being more kind than D S Kulkarni Developers Ltd. This time - your offer is less exploiting than DSK's Aadhi Ghar Nantar Paise offer. I wanted to tell Mr. Aditya.
Your "Pay 10 per cent Now & Get it Back by Possession" is just a gimmick. Sounding like a 'Cash Back' Offer in Credit Card industry.
Your "Pay 10 per cent Now & Get it Back by Possession" offer, I thought, is nothing but jugglery. Like any discount offer. To attract the buyers - first increase the price and then pretend to offer discount. "Flat 10 % Off!"
Of course, your offer is not harmless. It's a big risk. For everyone. For a builder. For a home buyer. For a bank.
In fact, it's a self defeating offer. At the end of the day, everyone is going to lose. For sure.
When I found out that HDFC Ltd. (www.hdfc.com) is backing you, I asked myself, "Is Mr. Deepak Parekh dead?"
How can HDFC Ltd. go against Mr. Deepak Parekh? Mr. Parekh was completely against 20-80 home loan offer. Mr. Parekh was against 'teaser home loan interest rates'.
But, now, HDFC is happy to offer - 10-80-10 - also known as - 10-70-10-10 Offer - which is nothing but a subversion. A systematic attempt to undermine Reserve Bank of India and it's efforts to protect home buyers & Indian Economy.
Don't you think that your "Pay 10 per cent Now & Get it Back by Possession" offer is an invitation to disaster? I wanted to ask Mr. Aditya. But I couldn't. Mr. Aditya went to Europe. With the members of CREDAI Pune Metro. On a study tour.
In his absence you, Mr. Madhur Ingalhalikar, Director, Business Development, called me.
Mr. Madhur said, "Ravi Karandeekar, you are giving undue importance to '10 per cent offer'. It's just an effort to attract a home buyer to the site. Booking happens because of the property - planning - location - amenities - construction progress. You are completely ignoring all this. Is this fair?"
I accepted your invitation and visited Palash Boulevard Pirangut.
However, instead of getting impressed, I realized that Palash Boulevard Pirangut is a worthless property.
This is not a jugglery.
This is a rip-off.
How can HDFC become a part of this rip-off?
Is Mr. Deepak Parekh really dead?
User Friendly - Liveable - Architecture of Palash Boulevard Pirangut:
"Try to understand our intent. Our aim. We want to build good - liveable - homes. Even in Pirangut. Even at an affordable price. A home as good as a home in Kothrud - Baner - Wakad. We have taken a lot of efforts on planning. Efforts to offer well planned flat - which have privacy, light, ventilation, efficient space utilization. We haven't cut corners. We are using good construction materials - AAC Blocks. Services are well planned - electrical - plumbing - garbage disposal system - including staircases & lifts. Water treatment plant and the works," after visiting all types of 1 BHK & 2 BHK Flats in an under construction building, said Mr. Madhur.
I completely agreed with Mr. Madhur. Planning of Palash Boulevard is good. But not the price. Of course, I didn't argued about the property rate. At that point of time. Some Rs. 3050 and odd. I let him speak. And video recorded him.
I was not visiting Palash Boulevard Pirangut for the first time. I had visited it an year ago, in August 2013, when Vilas Javdekar Developers launched "Pay only 10 per cent now, Balance on Possession" - pre-launch offer - for Palash Boulevard and other projects. At that time, there was nothing at the site. Now, 13 months later, out of 2 - 12 story buildings, one is under construction. Site office & sample flat is not yet ready.
"When all these things would be ready - we will stop the 'offers' - and we will talk about the project," said Mr. Madhur.
"But, out of 2 buildings - why are you constructing only one?," I asked.
"Because, at that time, only one building was sanctioned. Now, the second building is sanctioned and construction will start soon," said Mr. Madhur.
"And the offer is for both?," I asked.
"First building is almost 70 per cent booked. So, mainly for the second building. But this is not all - actually this is a big project. Nearly 20 acres. In phases," said Mr. Madhur and showed me the entire layout.
"Have you received an Environmental Clearance?," I asked.
"Not required for Palash Boulevard. It's an independent project of 3 acres. Completely self sufficient," said Mr. Madhur.
"In that case, why are you talking about it? Are you trying to create an impression that Palash Boulevard is a big township?," I asked.
"I thought that you would be interested in our future development plans. My main interest is to show you what we are offering today!," said Mr. Madhur and invited me to visit the under construction building.
In this 12 story building, staircases & lifts are in the center. From a lift a passage takes you to a pair of 1 & 2 BHK Flat. There are 4 pairs on each floor. Means 8 flats on each floor. Though the plan is the same - sizes of the flats are not. So you have a choice. Choice of a view, size, budget.
"Because of an 'offer' - instead of 30 lakhs - you can get such a good 1 BHK Flat for only 27. And instead of 40 - a 2 BHK - for 36!," said Mr. Madhur.
Sorry. I don't know much about underwater real estate!
"Look at the view - every terrace - every flat - has a different - beautiful - view," standing in a terrace, Mr. Madhur said.
I looked too. And went on looking at the big stream. Since morning, there were no rains.
"How come this stream has so much water? It's flowing in full strength!," I asked.
"Water from near by rice paddies - we are putting pipeline to divert it to the natural canal - which is connected to the river," said Mr. Madhur.
"Yes, this building is in the water collection bowl of this valley. Water must be collecting here in huge quantities from all around - from the hills and the fields. This is a flood prone area!," I said.
"Mr. Vilas Javdekar is very particular about these things. Professional agency has done survey & study of all these things," said Mr. Madhur.
You know what? I found it difficult to believe him. After all I was talking to a builder who believes in jugglery. He can juggle with the people. But not with Nature.
The actual gaothan of Pirangut is way away from Palash Boulevard. It is there for thousands of years. It went on expanding. But never in this part. Never in the valley. Always on the lands on the height. Not at the bottom of the valley.
Because, bottoms of the valley are not safe to live.
You need common sense to understand which land is safe to construct homes and which is not.
You don't need a surveyor or geologist. I told myself.
Flood prone area is the biggest problem in Pune. Natural and manmade - builder made - problem!
Many times, when someone asks me about some project in Bavdhan Valley - where the situation is almost same - I say- "Sorry. I don't know much about underwater real estate!"
Considering the possible real estate development in this Pirangut Valley, if someone asked me about Palash Boulevard, I have to say the same thing - "Sorry. I don't know much about underwater real estate!"
What can I do? I have to be well prepared. Pune home buyers ask tough questions. I can't tell them to risk their life. I have to be over cautious about all risk factors.
Let Them Drink Coke:
The idea of living in a building constructed in water collection bowl of the valley disturbed me like anything. In that disturbed mood, I asked Mr. Madhur, "What about drinking water? Pirangut has no water."
"We have our own water well - big one - it has ample of water - all around a year - potable water ," said Mr. Madhur and showed me the water well.
Yes. It's quite a big water well.
"Plus, we going to get an exclusive water line from the government!," said Mr. Madhur.
Exclusive permission to lift water! Great!!
I have heard this from a couple of builders in Pirangut.
And from most of the builders in Wagholi.
Mostly at the time of a launch. When the project is under construction.
But all those projects were big.
I would love to see a 3 acre project of 200 flats with an exclusive water pipeline! I told myself.
Pirangut is fortunate. It may not have water. But it has Coke.
Builders in Pirangut are free to say - "Let Them Drink Coke"
(On the lines of "Let Them Eat Cake"!)
Which Kolte-Patil Developers couldn't say to the residents of Ivy Estate at Wagholi!
Palash Boulevard - Without a Proper Approach Road!
You know? Before starting Ravi Karandeekar's Pune Real Estate Market News Blog - I was onsite real estate salesman. Before that I was in real estate advertising & marketing.
When I was advertising & marketing real estate - I used to invent 'ideas'. Creative ideas. Means "Lies". White lies. Pure white lies.
But, at the Palash Boulevard Pirangut, I realized that I was not that 'creative'.
I failed to invent an idea of calling "Boulevard" to a project which doesn't have a proper approach road! How sad!!
Besides lack of creativity, I have one more defect. I have common sense.
When at the middle of Pirangut Ghat Mr. Madhur took a turn for Palash Boulevard and stopped his BMW on a steep slope, I asked,"Where is the new cement concrete road?"
"This is it! We are spending 70 lakhs to construct this road," said Mr. Madhur.
"Why? Isn't this private road owned by those industries?," pointing at the board, I said.
"We have signed MOU with them," said Mr. Madhur.
"Don't you think that it's waste of money? After the widening of Pirangut Ghat - this road would be closed!," I said.
"Why? This road is on R P Plan!," said Madhur.
"Private road on R P Plan! Unbelievable!! Okay. Let us assume for a moment that this road is official. But don't you think that this road should be closed? Because, this road will puncher 4 lane State Highway in the middle of Ghat. Which is not safe. Not safe for the cars, trucks, buses climbing up & down. Not safe for the 200 residents of Palash Boulevard. How can you put the life of your home buyers in danger?," I said.
"This is a cynical - over exaggerated - comment. This plot is owned by my father in law. It was his farm. We have checked all documents. This is official road," said Mr. Madhur.
"Yes! In the last century - this may be a good "Vahivaticha Marg" for a farmland. But now, we are talking about a residential project of 200 flats. This "Vat" is not safe for their 200 - 4 wheelers & 2 wheelers!," I said.
It means that, I said to myself, Aditya Vilas Javdekar not only loves to juggle with the home loan offers but with the homebuyers' life too.
"Tum mujhe khoon do, mein tumhe ghar doonga"
(You give me blood, and I promise you home)
When Mr. Madhur dropped me at my home, he was almost sure that Ravi Karandeekar is skeptical. Distrustful of Javdekars' sincerity - integrity.
Ravi Karandeekar has a cynical attitude. He has very little faith in builders. He believes that builders are out there to screw the homebuyers.
Ravi Karandeekar is not only skeptical & cynical. He is pessimistic too. He doesn't believe in future development of Pirangut.
Ravi Karandeekar's negative attitude prevents him from accepting that homebuyers who take a risk today are rewarded tomorrow.
What is wrong about our Palash Boulevard Pirangut?
My father in law had 20 acre farmland in Pirangut.
My cousin brother Aditya Vilas Javdekar & I decided to develop all 20 acres.
It would be a biggest residential development of Javdekars.
Their previous projects in Wakad were smaller in size. Around 6 - 7 acres.
So developing 20 acres was a challenge.
A tough challenge in Pirangut.
Because, at Pirangut supply is more and demand is less.
The plot had some negative points.
The plot is at the bottom of the valley.
The plot didn't have proper access road.
There is no water supply in Pirangut.
And the plot has some positive points too.
Recently, Pirangut has become popular among IT Professionals working in Hinjewadi and people who stay in Kothrud.
Three types of buyers are interested in Pirangut.
1) Middle class second property buyers in Kothrud.
2) Visionary real estate investors and
3) Desperate young couples who have no money to pay 20 per cent own contribution but are eligible to get 25 - 35 lakh home loan.
Aditya Vilas Javdekar is a creative genius.
He has a solution for every problem.
To hide negative points, Aditya came up with positive ideas:
- Welcome to Palash Boulevard, your home in "Tomorrow's Kothrud" !
- Bounded by hills on one side and lush green fields on the other, Palash Boulevard sits pretty in Pirangut Valley.
- Located 2 km before Pirangut Gaon
- Here’s an opportunity to invest into tomorrow!
Aditya Vilas Javdekar is a financial genius.
To raise seed capital to develop 20 acres, he selected worst corner in the plot.
In 2013, Aditya came with 10-90 Offer. No EMI till possession.
And raised a few crore rupees from the financially weak desperate young couples.
Aditya Vilas Javdekar is a strategic thinker.
He decided to encash 7 story RCC structure of the first building.
Now there was no need to show concern about property buyers who can not afford to pay Pre-EMI + Rent till they get possession.
So, instead of No EMI till Possession - Aditya came with 'Pay 10 per cent now & Get it Back by Possession offer'.
What is wrong in this?
Real estate business runs on property buyers' money.
At the time of launch of a project - basic infrastructure is never available.
But, after the project is complete and people start living - infrastructure - road - water and all - follows.
This is a fundamental principal of real estate development in Pune.
If you want to own a home, you don't have an option but to accept this fundamental principle.
How can lack of basic infrastructure make a property worthless?
Ravi Karandeekar is not an authority about valuation of property.
But HDFC is.
HDFC knows that a 1 BHK Flat (430 sq.ft. Carpet Area) in Palash Boulevard is worth paying Rs. 69 Lakh in 240 monthly installments.
HDFC knows that a 2 BHK Flat (600 sq.ft. Carpet Area) in Palash boulevard is worth paying Rs. 78 Lakhs in 240 monthly installments.
And all home buyers know that getting Rs. 3.6 - 4.5 lakhs back is very lucrative offer for a 1 BHK / 2 BHK Flat which cost only Rs. 69 / 78 Lakhs.
But how can a cynical, skeptical and pessimistic Ravi Karandeekar understand this?
Ravi Karandeekar is full of negativity.
Ravi Karandeekar doesn't understand that a common man has to sacrifice to get something.
In the past, for freedom, common man has given his blood.
Today, for a home, common man is doing the same.
Point is, no one will pay attention to Ravi Karandeekar.
All optimistic homebuyers, for sure, will follow Aditya Vilas Javdekar.
In fact, people come to Aditya with request - "Take Our Blood & Give Us Homes."
Moral of the story is - taking Ravi Karandeekar to Palash Boulevard was waste of time.
Mr. Madhur told himself.
I am sure, most of you, will agree with Mr. Madhur Ingalhalikar, Director, Business Development, Vilas Javdekar Developers. Am I right? Please, share your views in the comments.
Brochure & Contact Javdekars Palash Boulevard at Pirangut
1) Visit Javdekars' Palash Boulevard, 1 BHK 2 BHK Flats at Pirangut - Tomorrows Kothrud (!) Photo Album on Flickr
2) Brochure of Palash Boulevard
3) Website: www.javdekars.com
4) Call Center: 92600 10000
5) Palash Boulevard Site: 91 85549 82916 / email@example.com
6) Vilas Javdekar Developers Office:
306, Siddharth Towers, Sangam Press Road, Kothrud, Pune 411 038
+91-20-6620-8000 / firstname.lastname@example.org
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