Thursday, February 23, 2017

Yes! Most of the builders in Pune are unfit for booking a flat at under construction stage

In Pune real estate market every flat buyer becomes a victim of the builder. 
Including those who have got possession of their flats!:

Yes! Most of the builders in Pune are unfit for booking a flat at under construction stage .

Most of the builders in Pune don't know how to construct a housing project.

Banks know this truth.

That's why banks avoid giving loans to the builders.

Instead of that banks give home loans to the buyers.

Because banks know that the flat buyers do not know this truth.

However, after possession most of the flat buyers realize that their assumption is wrong.

Their builder didn't know how to construct a housing project.

"We assumed that since the builder has acquired the plot of land, obtained sanctions & approvals, constructed sample flat & site office, released color ads in the newspapers, put on hoarding on every road, received APF numbers from the banks - means the builder knows how to develop the housing project - means we can book a flat at the launch or at the under construction stage of the project."

"Our assumption was wrong."

"Today we are suffering because of our wrong assumption."

"Every builder in Pune is not fit for booking a flat at under construction stage."

"If we had known this before booking - we would not have become victims of the builders in Pune - and the slaves of the banks for the next 20 years."


Didn't anyone tell you that most of the builders in Pune are unfit for booking a flat at under construction stage? Not even your colleague?

Read these mails. True experiences of the flat buyers.

Email One:

Dear Ravi Khandekarji,

I am regular blog reader and I like your blog very much, your opinions are really worth and add value to take decisions.
Today I am writing you to seek your advise on below issues,

I purchased a flat in Chinchwad Pune from one of the reputed builders just one year ago. During period of last one year I faced quality issues and I informed to the builder but no appropriate response received from builder. I feel these affect the life of property if not attended properly.

Heavy water leakage / seepage has lead to colour damages inside flat at multiple locations.

Substandard, poor quality internal wall painting and damaged paint due to water leak/seepage.

Water leakage is highly potential to cause short circuiting and damaging the wiring (see picture), conduits and other electric appliances make life of the occupants risky.

Main entrance door needs replacement with proper locking mechanism.

Poor quality sliding window provided in bedroom, window without seals.

Parking area provided is open to sky and exposed to occupant’s windows. Faced issue, when car was parked in the parking area, somebody has thrown dirty casual mud on the rooftop of car. It is highly unsafe to consider this area as parking area since there is possibility of damages due to thrown objects.

There are few floor tiles which seems to be not fixed properly and gives sound during movement in the flat.

The sliding of window of second room also doesn't not have bearing due to which it has sticky movement.

Water leakage in bathrooms.

Above concerns reported to site office in past (many occasions) and raised complaint officially but no serious response from concerned authorities to resolve these issues.

Kindly find attached self-explanatory pictures which gives more clear idea about condition of flat. Deficiencies and flaws in the construction works which aroused just in span of one year of construction work which shows poor quality of construction work.

Please advise me, if builder will not respond to these concerns then what I should do?

Email Two:

Dear Sir,

I have purchased the flat in Pimpri, Pune from Builder in 2014 and we got the possession in January 2015.

There is improper finishing work and low quality of construction.

My flat is on top floor and now in rainy season water leakage is there in the bedroom walls and seepage is there.

I complained to builder and did mail communication also but he is not taking it seriously.

He is saying that, it’s may be due to heavy rain, I will go and check then will see what can I do?

He is just saying like this and spending the time without any action.

Still no members are getting Municipality tax and there is no society formation.

Also there is lot of works pending in common area of building such as, Water tank leakage, terrace door etc.

I am seeking your advice for further step. I will be thankful if you give advice to take further steps.

Thanks & Regards,

Email Three:

Hello Sir,

We at Axxxxxxxxx Exxx, Keshav Nagar , Mundhwa, Pune are facing lots of problems like Bad roads, no drinking water, poor construction quality etc.

Can you guide us on how we can get it done by builder or from Gram panchayat (for roads).


Email Four:

Dear Ravi,

Thanks for responding to my email.

Let me tell you in details. The builder initially collected some maintenance amount during purchase of flat which exhausted in year 2014.

The flat owners paid the maintenance amount as per the Sq. Ft. area rates decided by the builder.

The services provided by builder while he maintaining the society was useless and flat owners were fed up with the same.

Flat buyers also have to take many follow-up with builder for getting small small work done.

The builder fitted systems of local brand for example lift, fabrication work, Incomplete compound wall, Painting not done, Drainage chambers not prepared properly, Construction not done properly, Main Gate not prepared properly...etc whose huge maintenance cost started coming in new building from 3rd years onwards.

Because of cheap product used & quality of services, the maintenance amount started getting exhausted as said by builders in year 2014 and he started demanding more money.

After some time builder stopped maintaining the society and he told to do all things on your own to flat owners but did not handed over the legal right of the society.

At last flat buyers started collecting maintenance amount from each flat owners and went ahead to maintain the society on their own.

The flat owners are still living in the same flat with lack of basic amenities. The club house, garden and basic infrastructure to be provided are still not provided till now and the builder has not handed over the society.

Builder has other construction going on for other building but he takes around 4 years to complete a building of 40 flats. The total building may be around 6 in numbers. The construction is going on from year 2007 and he till now completed 2 building of 80 flats and other work is still going on.

Flat owners started staying in first building from year 2010 without possession letter and NOC provided by builder and in 2nd building from Year 2014.

Already 5-6 years have crossed till now from people staying in the building.

Builders once said that he will complete all building and then only get Occupancy certificate (OC) and not phase wise.

Flat owners of old building have still not received the legal rights of flat, basic amenities, and worried when they are going to get this basic amenities whose amount they have already paid long back.

Builder will take another 4-5 years to complete the remaining building.

Low quality of work, defective systems fitted and incomplete work has also increased the maintenance amount of flat owners to a huge extend.

It is a request to you to include his name in the default list of builder for not handing over the society from last so many years and submit for legal action commonly with all other builders from pune.

With regards,

How banks are exploiting the flat buyers:

Just imagine what would have happened if a bank had given a loan to any builder mentioned above!

No one would have purchased leaking & seeping ready possession flat which has rattling tiles, incomplete amenities and no completion & occupancy certificate. Right?

Then, obviously, the bank would have been in loss. Right?

Against this - Look! How profitable & safe it is to give loans to the home buyers!!

A homebuyer will keep on complaining about leakage & seepage, rattling tiles, incomplete amenities, no OC & CC, no society formation, etc.

But the flat buyer will keep on paying home loan EMI for the next 20 years of the flat whose legal owner is still his builder. Because the builder hasn't done the conveyance!

Still, every flat buyer believes that he should book a flat in any under construction project which is approved by the bank!

How RERA is the deadly trap:

You know? In the last 10 years, everyday I receive letters about poor construction quality.

And I am sure, even after the implementation of RERA in Maharashtra - I will keep on receiving such letters. Perhaps, more.

Because, RERA will offer false feeling of safety to the first time flat buyers and they will not bother to consider - "Is this builder fit for booking a flat at under construction stage?" and, for sure, will become victims of Pune builders.

Ask any builder in Pune. His replay would be - RERA is good for real estate industry. After appointment of regulator every industry has grown substantially!

Related Stories:

1) The Case of Suyog Nisarg at Wagholi, Pune

2) The Case of Suyog Lucky Homes at Wagholi, Pune

3) One flat buyer in KUL Ecoloch Mahalunge filed an FIR against the builder

4) Lalit Kumar Jain warned - if a KUL Ecoloch flat buyer commits suicide, you are responsible

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