Mr. Lalit Kumar Jain on Real Estate Locha:
I am big fan of Mr. Lalit Kumar Jain. Chairman and Managing Director of Kumar Builders Urban Development Ltd. (KUL) (www.kul.co.in) and President of Confederation of Real Estate Developers' Associations (CREDAI).
In the last couple of months, Mr. Lalit Kumar Jain has talked a lot about delay in getting sanctions and approvals for the real estate projects and no bank finance for the builders. Result is, real estate locha!
Of course, those who have booked at the pre-launch or the launch stage of the projects in Pune real estate market know all about real estate locha!
Some of you, also know about 'possession locha in Pune real estate' and how helpful "CREDAI Pune" is!!
Point is, after learning about real estate locha from Mr. Lalit Kumar Jain, i came to the conclusion that there is no point in writing about any project till the builder gets all sanctions and approvals.
From the experience of Nanded City Pune, i added the time required for the pre-construction site development and decided that i should write about the township projects only when the actual construction starts!
If you haven't read about real estate locha, please, look what Mr. Lalit Kumar Jain says:
"Whether buying land, expediting government clearances, a process that can take three months to a year and half, approaching over 40 government authorities or agencies involved in the project clearance, there is potential for added costs.
From buying land to project launch, developers wait for up to three years. With bank funds unavailable to developers, input cost of funds for land can double in this time," Mr Lalit Kumar Jain, National President, Credai and Managing Director of Kumar Urban Development in Hindu Business Line
"The Credai has prepared a comprehensive checklist of requirements of each department, like environment, traffic, garden and water and this list will be submitted to the Union minister of Urban Development, Kamal Nath, later this month."
"If this list is approved by the government, a builder will get the approval within three weeks. Thus, we can control 25% cost of delay, thereby reducing flat prices. We have no control over the cost of land, material and labor, so at least let us control the cost of delay," added Lalitkumar Jain, President of the Confederation of Real Estate Developers Associations of India, (Credai), in The Times of India
At the moment the sector has many hurdles in the process of obtaining over 40 approvals including environment, high rise, airport authority and police, Jain said adding that some states like Maharashtra were taking over a couple of years for according all clearances," Confederation of Real Estate Developers' Association of India (Credai) president Lalit Kumar Jain said today - in ibnlive.com
The Confederation of Real Estate Developers' Association of India (Credai), the apex body of private real estate developers, today said that it would make the code of conduct mandatory for all its members.
President of Credai Lalit Kumar Jain said that members advertising their projects in the media should clearly mention about their affiliation with the apex body.
They should also clearly mention the saleable area (which is the super-built area) and the carpet area in brochures, he told reporters here.Jain said that Credai had also set up a grievance redressal mechanism for buyers to register complaints with the body.
He said that Credai would arrange for arbitration between two parties to avoid going to the court.
Any member who was found not adhering to the code of conduct would be expelled from the body, he said. (Credai to make code of conduct mandatory for members - Press Trust of India)
"Kumar Builders has postponed plans for initial public offering and now Kumar Builders are in talk with private equity firms to raise around $300 million over 2011-12. The Pune-based real estate firm is creating special purpose vehicles (SPVs) for each of its projects, and plans to sell 26 per cent to PE firms in each SPV.
“Kumar Builders will hive off 26 per cent stake of each project to private equity players for raising the funds.
We hope to complete the process before next fiscal-end,” Lalit Kumar Jain, chairman of Kumar Builders, told Financial Chronicle.
The company is in talks with several PE players both in the domestic market and overseas
market for raising funds, according to him.
Jain said the company has postponed plans for IPO for the time being as market sentiment is not that bullish. Kumar Builders, had filed an application for IPO in 2009 to raise around Rs 450 crore in 2009 but later deferred the plans due to adverse market conditions.
The company will launch one residential project in Kalina, one in Vile Parle (East) and another in Ghatkopar, each project counting 100 flats. It will also launch one special economic zone in Hinjawadi, in Pune. The total investment for the projects will be around Rs 1,050 crore, according to Jain.
In February, the company raised $55 million from Dutch equity firm FMO.
"The $55 million which we raised recently will also be utilized for the new residential and SEZ projects that we are launching in the next quarter," Jain said.
There is liquidity crunch in the market and raising funds has become difficult for real estate companies as banks turned extremely cautious. "These projects are expected to be completed in next seven years," Jain said." (Kumar Builders eyes $300m PE Funding in domestic and overseas market)
Chemical Locha in Mr. Property Buyer's Brain!
You know? On phone, many times i am rude. As rude as some of your comments on my blogs. Sometimes, even i insult the caller. For example, yesterday, i told the caller that - like Munnabhai - there is a chemical locha in his brain!
The home buyer called on my mobile 919860044110, to discuss about investing in KUL Ecoloch Mahalunge Township. He told me about the pre-launch offer and asked for my take. I told him how i respect and follow Mr. Lalit Kumar Jain. "As per Mr. Lalit Kumar Jain - sanctions and approvals - is a big real estate locha! So, you should not consider any project unless it receives all necessary sanctions!," i told the caller.
When the caller started talking about the low property prices at launch and convincing me about the expected appreciation, i requested him to "think in numbers" and consider the "risk factors" about investing at pre-launch or even at the launch stage of any project.
But, the caller was not listening. He kept on telling me about the pre-launch offer of KUL Ecoloch Mahalunge Township. Ultimately, i asked him, "Why did you call? To sell Kul Ecoloch Mahalunge Township? Or to seek my advice?"
"For your advice!," the caller said.
"Good! My advice is - you need psychotherapy - there is a chemical locha in your brain!," I said. I was about to give him the telephone number of the shrink but the caller ended the call.
You know? Many property buyers, particularly those who fantasize about investing in a plot of land, those who dream of earning big returns and a huge appreciation from a 1 BHK Flat in some fringe village, those who go for the pre-launch offer of the projects which haven't yet received N A, have found my shrink quite useful for cleaning chemical locha in their brains!
KUL Ecoloch Mahalunge - Aayla! Lochya Zala Re!!
Dear wife or a girl friend? Big Builder or my principal? My Real Estate Guru - Honorable Mr. Lalit Kumar Jain or my old friend Mr. Fahim Khan? Why do i have to face this type of a situation again and again?
You know? Late in the evening, my old friend Mr. Fahim Khan, Dy. General Manager, Sales & Marketing, Kumar builders (KUL), called me, "Ravi, we have soft launched Mahalunge Township and I want you to write a blog about our pre-launch offer!," Fahim said.
"Lochya Zala Re!," i said to myself and asked, "Fahim, have you received all necessary sanctions?"
"Sanctions will come in a month. Consider, how much your readers can save...how much 'thanks' you will receive from your readers!," Fahim said.
"Lochya Zala Re!,' i said to myself and asked,"But...what about Mr. Lalit Kumar?"
"What about him? Want to interview him? Don't worry. I will arrange! I am sending all data..," Fahim said.
"Fine...send....but for more info - i will give your contact number on my blog. OK?," i said.
Is there any chemical locha in my brain?
Why didn't i refuse to blog the pre-launch offer of KUL Ecoloch Mahalunge Township?
Considering the huge number of property buyers who are suffering with chemical locha about investing in Pune real estate, Ravi Karandeekar, whether you write or not, you have to keep on talking - discussing - answering phones on this project near Hinjewadi.
So, why not blog your views and avoid talking about it?
I went on debating.
Result is - at least, you will not call me and tell - Lochya Zala Re!
You will call:
Mr. Fahim Khan, Dy. Manager, Sales & Marketing, Kumar Builders
Cell : +91 7709002283 E-Mail: fahim.khan@kul.co.in
+91 20 4000 6000 F: +91 20 2633 0584
Website: www.kul.co.in
If you want to view the PDF Files about the project, please, visit these links:
1) Location of KUL Ecoloch Mahalunge Township
2) Layout of KUL Ecoloch Mahalunge Township
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| (Click the Image to Enlarge) |
3) Presentation of KUL Ecoloch Mahalunge Township:
4) Floor Plans of KUL Ecoloch Mahalunge Township:
1) 1st floor
2) 2nd floor
3) 3rd floor
4) 4th floor
5) 5th floor
6) 6th floor
7) 7th floor
5) Specification of KUL Ecoloch Mahalunge Township:
6) Amenities at KUL Ecoloch Mahalunge Township:
7) Pre-Launch Property Prices at KUL Ecoloch Mahalunge Township:
Updates:
3) Kothrud police booked Lalit Kumar Jain for cheating, breach of trust and forgery
2) THURSDAY, MAY 26, 2011
Visit to Kumar Builders' KUL Ecoloch Mahalunge!
1) FRIDAY, MAY 6, 2011
Kumar Builders' KUL Ecoloch Mahalunge, Baner Annexe, near Hinjewadi IT Park Pune, Launched!
Related Stories:
1) WEDNESDAY, MAY 4, 2011
Want Guaranteed Delayed Possession?
2) SUNDAY, APRIL 3, 2011
1st Quarter of 2011 - Most popular blogs on Ravi Karandeekar's Pune Real Estate Market News Blog
3) SATURDAY, APRIL 2, 2011
March 2011 - Most popular blogs on Ravi Karandeekar's Pune Real Estate Market News Blog
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I also heard this project does not come under municpal cooperation and its still under gram panchyat. This may add up to issues for getting loan from banks. By the way I am planning to visit this place on sunday and get more details about this chemaical lochya...good article ravi
ReplyDeleteany views ashish?
ReplyDeleteDear Ashish, Megapolis & Kolte Patil I-ven also comes under the gram panchyat
ReplyDeleteBanks's still fund 80% to it.
On the positive side, Falling in gram panchyat, you can save significant 3% wrt. Stamp Duty
5% - With in PMC limits
2%- Outside PMC limits
Dear All,
ReplyDeleteWhen called then for booking the fact is that they will not give receipt for paid money and project launch will be on 6 th may .....Registration will be done in june...construction will start in Oct....before that we have to pay booking amount and registration will done in June...now it will be safe to go for this project not sure???
Dear Ravi,
Ur thoughts on this please??
80 flats booked for Kul Ecoloch projects..(Fahim told)..all approval will come within 10 days....also dont know how safe to book it fron proptiger team....but its seem they are giving good service....dont knw if any hidden cost involved....
ReplyDeleteAlso observed one thing that there is difference between cost and area provided by onsite location team and Ravi cost sheet ....also between Kul Ecoloch team's cost showing variation of 50 thousand to 1 lakhs difference...
ReplyDeleteHeard that it has received a township sanction now!
ReplyDeleteAre the bookings for A, B buildings open?
ReplyDeleteAlso, what's the exact location of this first phase in entire project?
Township sanction still not received ...awaiting ....once received they will launch project on 6 th May with higher rates ...nowadays they are planning to compare with Blue Ridge but looking at design seems cheap......not too good...
ReplyDeleteyes ....take right turn from Archid hotel going from pune to mumbai road .....
Current rate - 3000 not doing compromise unless untill good relationship.....Most of the flats booked by Investor dont knw who will stay there :)
Dear ICS,
ReplyDeleteI know these proptiger guys..they really put their hard efforts in providing their best services to their client. They don't even charge anything to their clients.Also provide more realistic or true information to the clients as compared to other property consultants and the builders.
Dear Zoom,
ReplyDeleteI agree with ur point of view and found really they proving good service. I hope they will keep it continue. Cheers...
Zoomingproperties,
Do have any latet updates from KUL ECOLOCH if u latest info?
Please, read: Want Guaranteed Delayed Possession?
ReplyDeletehttp://www.dnaindia.com/mumbai/report_buyers-in-agony-over-delayed-housing-projects-in-pune_1539249
ReplyDeletethe property has a good strategic location. i have seen the location and could see blueridge and cts in close vicinity. the rates near the highway is around 3600 psf whereas they are quoting 3100 now.
ReplyDeleteDear All,
ReplyDeleteToday Kumar builders increased the rate to Rs.3300/- per sqft. I am really surprised the way they are increasing the rate. Its better to go for megapolis then as the construction is going on in a very good pace. People think its quite inside but as you see the approach road and closeness to the major IT companies, its worth paying Rs. 3100/- and Rs.3150/- per sqft for the smart homes.
Dear Zooming,
ReplyDeleteI have seen construction, design, location of megapolic and blue ridge is far better than Kumar builders Kul Ecoloch....it will come to know when they will start construction because as of now they havent done registration for any buyers....it will be in June and construction will start in October ..dnt knw how it will...looking positive for KUL Ecoloch....If anyone knows about project ...please keep updates
Dear Ravi,,
ReplyDeleteThanks a lot for all post ...really it help to understand situation ...
Cheers
Dear Ics,
ReplyDeleteI will suggest the buyers to go for that projects..in which you can see the construction is taking place rather than going for a project in which all the things are tentative...
Dear Ravi,
ReplyDeletePlease let me know your opinion that which project is the best project among Blue Ridge, Megapolis and Kul Ecoloch.
And Which will give maximum returns down the line.
Dear Ravi,
ReplyDeleteWhat are the pros and cons of going for a township which would be for 99 years or 999 years lease than buying one? Please let us know.
Dear Zooming,
ReplyDeleteIts really good question that u have asked ...Ravi Sir ...Please update your valuable comments ...It will really helpful except chemical locha....I have seen ur post for delay in project but for investor it doesnt matters....please update
Dear Zoomingproperties,
ReplyDeleteI completely agree with you on this:
"I will suggest the buyers to go for that projects..in which you can see the construction is taking place rather than going for a project in which all the things are tentative..."
Dear Ravi,
ReplyDeleteDo you have any idea till what time the MIDC's proposed road from balewadi to hinjewadi will come up. Also i want to know the route of that road and will it touch hinjewadi phase three.
Dear Ravi,
ReplyDeleteI have heard about the proposed township of koltepatil.
What is the status of that project
Kolte-Patil's Marunje Township is doing good. Lot of people have invested in it. Last weekend, i was told that 2 BHKs are sold out. Not yet launched because no sanctions.
ReplyDelete'Kolte-Patil's project not yet launched because no sanctions', it means 'KUL ecoloch has got sanction as it has already been launched' Is it now?
ReplyDeleteI have never seen such a worst site. From Mhadunge road, its so far inside, that I covered almost 90% of the road, and then I come back without seeing the site..
ReplyDeleteDear Parag....Its ur wish thatu came back...anyways other project like blue ridge and megapolice that are also inside...
ReplyDeleteDear All,
ReplyDeleteAny updates when registration will happen ....not recieved any info about the same...
If u all check http://www.kulecoloch.com/ website except amenity and specification...dont understand whts issue to upload details like plan, layout, photogallery....site photo also not uploaded.....why KUL team hiding everything from public dont understand.....
ReplyDeleteDear Ics, please, visit this blog:
ReplyDeleteRavi Karandeekar's Pune Real Estate Market News Blog:
Visit to Kumar Builders' KUL Ecoloch Mahalunge!
Not sure how any site I visit these days is already 80% sold out with the high property rates. Without these said approvals and such high property rates at pre-launch stage how come in a 22 storey tower with 7 such towers and on an average 4 flats a floor, adding up to 560 flats, 400 being already sold out without even a brick being laid for 5 out of these 7 towers. I'm not exactly complaining about the scarcity of flats but wondering where are these buyers coming from ?
ReplyDelete@Moneysh ,
ReplyDeleteRecently i visited the site and asked the same question which is currently in your mind and the response was "there is huge team(around 10 people) who are CA and Doctors from Bombay invested 100 flats sply from 2nd floor to 6th floor.The whole project is open for Investors and there is no choice for common people.If you will ask for any flat then you will get flats available only on floor 1 and floor 7.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteDear Sir.. I have booked a flat around a 1-1.5 month back with KUL ecoloch...I was told that the approval was in process and the registration / agreements signing will begin starting August 1st week (2011). I had a followup call with KUL office ((020) 40006001)) and the person who picked the phone told that there is a delay in the PMC approval and that the agreements might take 2-3 months or even more ?? Have anyone else got a similar information...? Is there any way to validate it?? Thats lot of time for my 20% downpayment i made and that too without any registration / agreement and i wont even get an interest on that!!!
ReplyDeleteHello Ram,
ReplyDeletePlease watch this video
http://www.youtube.com/watch?v=1_X6dlb-798
Since April they are saying registration will be start within next 15 days :)
Dear All
ReplyDeletehttp://www.indianrealestateforum.com/pune/t-kul-ecoloch-information-17156-page6.html
Hi Ravi..i also want to know about What are the pros and cons of going for a township which would be for 99 years or 999 years lease than buying one??? can u pl. explain
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI m planning to buy 2bhk flat in kul ecoloch.Basically for investment purpose its fine i guess may be in future we expect the roads will develop and this property can be used for residential purpose.Pl. give your valuable comment over the project.
ReplyDeletewhat a crappy location. If you're a farmer workplace is nearby
ReplyDeleteHave anyone done registration as of now?
ReplyDeleteToday i enquired for 1 BHK and person who picket up the call.. quoted whopping 2 LAKHS!!!! for covered parking...!!!
ReplyDelete