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Wednesday, February 27, 2013

Prisoners of Pre-Launch Offers -
Earn Compensation & Freedom

Conversation with Mr. Vijay Sagar, Adviser, Builder Related Problems, Grahak Panchayat Pune:

Vijay Sagar, Adviser, Builder Related Problems, Grahak Panchayat Pune
Vijay Sagar, Adviser, Builder Related Problems, Grahak Panchayat Pune

When any housing project is not launched, as promised in the 'pre-launch offer', you are free to drop out.

Since, the builder has used your money, the builder must refund your booking amount with interest.

But that's not enough.

As a consumer, who accepted the builder's pre-launch offer, the builder should compensate you for your loss. The builder should refund your booking amount as per the current market rate.

For example, your pre-launch offer rate was Rs. 2,500 per sq.ft. and you had paid a token amount of Rs. 1 or 2 lakhs or 10 / 15 per cent of the agreement cost as a booking amount. Now, at the time of dropping out because of delay or uncertainty about the launch, the market rates have gone up to Rs. 3,000 per sq. ft. So, the builder has to refund your booking amount at the current market rate of Rs. 3,000 per sq.ft.

As a consumer, it's your right to get compensated for builder's inability to launch his project and fulfill his offer. Delay in launching the project and subsequent delay in giving possession of flat - is builder's fault. Not yours. So, the builder must compensate you for your losses.

Mr. Vijay Sagar, Adviser, Builder Related Problems, Grahak Panchayat Pune, told me yesterday evening.

Last year, VAT (Maharashtra Value Added Tax - MVAT), has awakened and empowered Pune home buyers who had bought properties between June 20, 2006 and March 31, 2010. Under the leadership and guidance of Grahak Panchyat, Grahak Hitvardhini & Sajag Nagarik Manch these united home buyers in Pune have started fighting for their rights. To advice these property buyers, Mr. Vijay Sagar & Ms. Seema Bhakare are available at the office of Grahak Panchayat on Tilak Road. I was visiting them for the updates about VAT issue.

Helpless Property Buyers in Jail:

"What is your problem, Mr. Karandeekar?," when my turn came, Mr. Vijay Sagar asked me.

"I am pained at the suffering of property buyers in jail," I said.

"Who put them in jail?," Mr. Vijay Sagar asked.

"They themselves! But, that's not important. Now, question is - how to free them?," I said and told him about a few pre-launch offers which have trapped hundreds of home buyers in Pune.

"Do you have any documents which prove that these property buyers want freedom & justice?," Mr. Vijay Sagar.

"Yes! Look at these emails!!," I said and showed him these two emails.
Example 1:
Dear Ravi Sir,

Through this mail I would like to seek your help and advice on a Pune Sahara City Homes issue in which nearly 450 old customers, who booked their flats some time during 2005 and 2006, are being victimized. Due to the reasons as explained below.

At the time of booking, we all the old customers were assured by the executives of Sahara of good future of the Project. Considering the name & fame of Sahara group we booked the flats with lot of hope of our Dream home and lot of emotions.

After the said booking, we repeatedly approached the Sahara Project Offices right from their Pune office to Lucknow Zonal office about Progress of the project, likely date of commencement and completion of the same. However every time we were intimated and given assurances that the project was getting delayed due to certain legal problems, but shortly the things will be sorted out.

As you are well aware that after a long awaited period, the project has now finally been launched on 10 Jun 2012 and a ray of hope appeared to get the dream home soon, however considering the rates for booking announced at the time of launching, arose certain doubts related to old booking, because there was no mention in any hoarding or the brochure about old booking cases. Enquiries were made to the Executives present at the site office, who confirmed that Chairman of Sahara Group has promised in principles during his live chat on the occasion of launching 10 projects at various cities in India 0n 10 Jun 2012 that the status of old customers will be maintained as promised and very shortly individual letters will be issued for their payment schedules.

The officials at Site office as well as newly established Zonal Office now located at Pune, kept the old customers lingering and avoiding continuously for Four Months after launching the project, in giving correct feed back on the issue. Finally during Oct 2012, Sahara issued option letters to the old customers not only with revised terms and conditions of the booking but revised rates too which puts a customers to cough up an additional amount ranging from 6 to 8 lakhs. To sort out the issue, old customers had 2 meetings at Zonal Office Pune on 13 Oct and 31 Oct 2012 and copies of the MOMs handed over at the Zonal Office. The main issue raised during these 2 meetings was to consider the cases of old customers on the terms and conditions as promised at the time of taking their booking.

After discussions of 2nd meeting held at Zonal Office Pune on 31 Oct 2012, Mr Dheeraj Singh (National Sales Head) promised to respond the queries raised by the customers by holding another meeting with the customers at the Zonal Office itself on 04 Nov 2012 (Sunday) after discussions with concerned Heads of the organization, but till date no such meeting has taken place. However, it is learnt that, by ignoring their promises made at the time of booking, Sahara Group is adamant not to revise the rates.

It is added for your information that even Chairman of the Group Mr Subroto Roy has also been apprised through email about the concern of customers and the prevailing situation over here, for his directions in sorting out the issue, but no response has arrived as yet. Nearly 450 customers are involved, who are running behind the Sahara people but no one is ready to listen.

In view of the above, may I request you to kindly guide we needy people.

Looking for your helping hand,

with regards

Example 2:
Dear Mr. Ravi,
I booked a 3BHK compact apartment in Pra East Avenue. The project doesnot appear to move any where from long time and i have started to have doubt on my investment. I have allready paid 15% of the booking amount 1 years back and my money is blocked. I cannot book any other apartment any where else and if i cancel this booking they charge a big amount of money.

Please suggest.

Thanks and Regards,

Fight for Justice:

"Helplessness and ignorance about our rights as a consumer makes us suffer. Awareness about our rights empowers us to fight for justice. We are here to guide all assertive property buyers. I firmly believe that all these property buyers can get justice," Mr. Vijay Sagar said and added that, "All depends upon what you prefer. Would you like to suffer or would you like to fight for your rights? If you want to fight - tell your readers to meet me for guidance!"

What say you? Would you like to suffer or want to fight? Please, share your views in the comments.

If you want to meet Mr. Vijay Sagar, here is his address:

Mr. Vijay Sagar, Advisor, Builder Related Problems,

Grahak Panchayat Pune Office
Above Grahak Peth, Opposite S. P. College, Tilak Road,
2020, Sadashiv Peth, Pune - 411030

Every Monday, 6 pm - 7.30 pm

94 22 50 23 15 / vsagar1963@yahoo.co.nz

View Grahak Peth, Tilak Road, 2020, Sadashiv Peth, Pune - 411030 in a larger map

Related Stories:

1) United Pune Property Buyers Continue Their Fight Against VAT & Builders!

2) Sahara City Homes Pune
- Patience, My Dear Pune Property Buyers, Patience!

3) Wish-Mouse of Ganpatipule - the last resort

4) Pre-launch offers are illegal

5) Pre-Launch Offer of Delfino Apartments at Lavasa

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  1. Dear Mr. Karandeekar,
    Its really good information which you shared to all home buyers like us. This will definitely help home buyer to whom he should contact in case of problems . Thanks for this useful information.
    With regards,
    Milind Khole

  2. In the case of Sahara City.. with recent judgement of SC are the properties in pune sealed ..?

  3. There is one solution to this and many problems of consumers:
    In dubai, Government (Dubai Land Department) plays a crucial role in regulating the rights of the consumers after the downfall recession of 2008. A developer in dubai has to open a escrow account along with the DLD (Dubai Land Department) for a paticular project. When ever a customer books a apartment or does any payment to the developer- this amount goes into this escrow account. This amount directly does not go to the developer. This developer has to claim the amount at every stage of project completion. If there is a delay in project launch or at any stage of development, the consumer can claim the paid amount along with the penalty charges ( interest), where you need not file a judicial case. This model is very successful in Dubai. Political will very important while imposing such policies.
    If we can frame similar model in India most of Indian consumer problems can be solved. To make the rules more stringent for the developer. A developer should be made to pay security deposit worth the market value of the project in such escrow account, so that the payment of the penalties can be made from this deposit. The developer who can't make payment of such deposit should not be allowed to sell during pre-launch or underconstruction.. This will encourage the unorganised developers to sell ready apartments..

    1. Thanks for sharing, Niketan! However, please, always remember that Dubai is a private zoo and India is jungle.

  4. Is their any problem the investor or peroperty buyer will aface on the sahara city homes, pune project ???

    Some buyers have already paid some booking amount. Will sahara will continue the constuction as per their schedule???

    All Buyers are now worried on their investment...

    What is your opinion on this, Ravi??

  5. Ravi,
    Thanks for this blog. Its a very useful information..

  6. Thank you for sharing this information. The information was very helpful and saved a lot of my time.

    Jim Zaspel on Pinterest

  7. Thanks for sharing this information. It breaks a person when he finds his hard earned money go to waste. If even big names of the business can't be an assured solution then where will a common man go? When I had purchased a flat in Aastha (by KBD Group), many people were surprised as to why I was trusting such a name against the big guns of the real estate in Pune. I was recommended by people close to me and knew the builder. Thankfully, my decision has paid off and I haven't had a single problem till date.

  8. Thanks for giving details to whom the people like me have to contact. I have booked 1BHK flat in Jade Dheera in October 2011, but till date registration is not done. Every time whenever i am contacting they say next month. I have paid 20% I am not able to cancel also because they will deduct 10% + service taxes and the procedure will take 1.5 month.
    Please help me my hard earned money is blocked and in stress. Lots of problem Pls suggest me what should i do how to proceed further.

    1. To take action against the builder, please, contact:
      Mr. Vijay Sagar, Advisor, Builder Related Problems,

      Grahak Panchayat Pune Office
      Above Grahak Peth, Opposite S. P. College, Tilak Road,
      2020, Sadashiv Peth, Pune - 411030

      Every Monday, 6 pm - 7.30 pm

      94 22 50 23 15 / vsagar1963@yahoo.co.nz

  9. This comment has been removed by the author.

  10. I saw ad from Rohan Abhilasha pre launch offer. Is pre launch is illegal and hence they are using promoter agency "proptiger" to sale pre-launch offer? or its valid to use agency?
    Is this project is ok and shall i consider it for buying?