Crime Pays:
 |
| Pay only 10 per cent now, Balance on Possession - Vilas Javdekar Developers' Offer |
Last weekend when I saw M/s Vilas Javdekar Developers' ad of "Pay only 10 per cent now, Balance on Possession", I said to myself - "WOW! How 'liberal' we are!! We all are free to commit a crime in broad daylight."
Not only politicians & builders but, - any 'white collar - middle class - salaried - common man' - feels free to commit a crime - confidently & proudly - individually or collectively - without bothering about punishment.
Because we all believe that there isn't anything like 'Crime & Punishment'. There are only 'Irregularities'.
And, we all know that, irregularities can be regularized. Not only a few buildings in Pune, PCMC & Thane but - an entire city of Lavasa - can be regularized.
Here, M/s Vilas Javdekar Developers (www.javdekars.com) is trying to collect only a few crores of rupees from a few home buyers.
Against the pre-launch offer of 1 BHK, 2 BHK & 3 BHK Flats in Yashwin at Baner-Sus, 2 BHK & 3 BHK Flats in Pallasio Towers at Wakad, 1 BHK, 2 BHK & 3 BHK Flats in Palash Boulevard at Pirangut and 2 BHK Flat in Yashwant at Kolhapur.
M/s Vilas Javdekar Developers is trying to collect a few crores of rupees - against the flats - they can not construct.
M/s Vilas Javdekar Developers is trying to collect a few crores of rupees - against the terms of payment - they can not offer.
So what? Who bothers!
Those property buyers - who are going to give away their 10 per cent contribution - know it well that -
legally it is not possible for M/s Vilas Javdekar Developers to fulfill the promise -
deliver their flats - on these payment terms - without necessary sanctions & approvals of the respective authorities.
Vilas Javdekar has to bend some rules - break some law - commit some crime - to give possession of these flats.
And that's what these property buyers like about 'crime'. Crime pays.
That's why behind every success there is a crime.
So, I was sure, no Pune property buyer can afford to refuse M/s Vilas Javdekar Developers offer - "Pay only 10 per cent now, Balance on Possession".
Result is - in the next few days - M/s Vilas Javdekar Developers (www.javdekars.com) would be richer by a few crores of rupees and a few Pune property buyers - empty but happy.
A Criminal is not Born but Made:
To find out the property prices, when I was about to call 92600 10000, call-center number of Vilas Javdekar Developers, Mr. Aditya Vilas Javdekar himself called me.
"Is slowdown - so serious - in Pune real estate market? - was my instant reaction," was my answer to Mr. Aditya's question about his ad.
"You know better," said Aditya.
"Is 20 per cent own contribution major problem?," I asked.
"One of the major problems - today's first time home buyer faces - his eligibility for a home loan is good - but, because - he doesn't have necessary 'own contribution' - he can not book a flat - when the property rates are basic - minimum - lowest. Means, at the launch or pre-launch stage. By the time - he collects 25 per cent of all inclusive property price - and is ready to book - rates have gone up - mostly gone beyond his budget," said Aditya.
"10 per cent makes him possible to book - now," I said.
"Right. Now. Because he knows - now or never," said Aditya.
"Now or never - even at Sus & Pirangut?," I asked.
"Everywhere...even at Kolhapur! Plus, this offer is not only about paying own contribution in 2 installments - 10 % now + 10 % at the time of possession - say, after 2 years - it's about "no pre-emi till possession" too - considering the ever increasing cost of living - how can one afford to pay both - "rent + pre-emi"? Till possession - for minimum 2 years - very difficult," said Aditya.
"Aditya - sounds okay - plus, since you have delivered - at the time of Palash 2 - in the last recession - looks possible too - but why now - when you do not have necessary sanction & approvals? I am against Pre-launch offers - because thousands of property buyers in Pune are suffering - waiting for years - they can't cancel - they don't have money - so they can't book in any ongoing project - so most of the pre-launch offers are scams - ponzi schemes, " I said and asked, "How can you prove that your intentions are good?"
"Look at my track record - my transparency - stage of sanctioning process. What more you want? What more can I offer?," said Aditya.
"Okay - thanks for calling - still wondering why you called!," I said.
"I was at my call-center - 92600 10000 - listening - even answered a few calls - response is positive - of course - lot of explanation - information - is needed - given - then thought of you & called," said Aditya.
"Thanks - nice talking to you - you know what? - I was trying to call 92600 10000 - let me try again - bye," I said & hung up.
At last, I got the call-center number of M/s Vilas Javdekar Developers - 92600 10000. I said, "I am interested in Pirangut - Palash Boulevard - but first - explain the offer"
The call-center executive explained Vilas Javdekar Developers' offer in brief and suggested to visit the site for more information.
"Certainly. However, before visiting the site - I would like to see the document between the builder and the bank - which will give me assurance that the bank is ready for these terms of payment - 10 per cent now - balance on possession," I said.
"Yes, of course, you can ask for that - when you visit the site office," the call-center executive said.
We all know what happened at the launch of Xrbia! To gain authenticity for it's 20:80 scheme - the launch ad and the website of Xrbia created - an impression that State Bank of India (SBI) - has agreed to give ADF - Advance Disbursement Facility!
Of course, in their advertisement, M/s Vilas Javdekar Developers hadn't mentioned the name of any bank - which is ready to give 80 per cent home loan on the terms of "Pay only 10 per cent now, Balance on Possession".
But, before giving our 10 per cent - it's our duty to confirm that - the bank has agreed - and has given "official & authentic" permission - consent - to the builder - to give this offer to the property buyers and collect 10 per cent of all inclusive property price. Right?
My wife expects that I should get her consent before I invite my friends for a dinner party at my home. Same rule is applicable to her too. At my home, no one invites before talking to other - not because out of worry - what if she refused to cook - I had to spend more to order from a hotel - but, because, inviting someone for dinner is a joint decision - joint authority - joint responsibility.
Same about builder and bank. Without agreement - without consent - of the bank - no builder can give any offer about housing finance. Certainly, not about "Own Contribution". Right?
To get the consent letter of the bank, I went to M/s Vilas Javdekar Developers office at Kothrud. The receptionist didn't understand what I wanted, but she was smart enough to arrange my meeting with the right person in the office.
"Please, give me the copy of the document which authorizes M/s Vilas Javdekar Developers to give "Pay only 10 per cent now, Balance on Possession" offer, " I said to the right person - who, I knew, is the 'right hand' of the builder.
"Why? Why do you want confirmation from the bank? Don't you know us? Don't you know that we would not have given this offer if the banks were not ready?," said 'right hand' of the builder.
"Yes, I know you. That's why I am here. I know that this is not some ponzi scheme. This is a genuine offer from a professional - creative - customer friendly - builder. Still, you know that without the consent of the bank - no builder can give any offer about home loan and - collect 10 per cent of the all inclusive property price," I said.
"Not fair! You don't object - when someone launches a project - without necessary sanctions & approvals - and collects 20 per cent. But, you demand proof from your friend," said 'right hand' of the builder.
"Because, I know that my friend is not a typical Pune builder!," I said.
The 'right hand' of the builder called Mr. Aditya Vilas Javdekar and told him what I wanted. After a few minutes, Aditya called me and said, "I don't have any document - the banks are not ready to give their consent in writing - you know why"
"Yes, I know. Because this offer is illegal. Banks can't give home loan on these terms. I knew that. That's why I was asking for the consent letter," I said.
"It's not - illegal. It's deviation. A variation. Little different from the standard practice," said Mr. Aditya Vilas Javdekar.
"Yes! You are right. Deviation. Irregularities. You know? I am not against you. But, certainly, I am against your offer, " I said and asked, "Will you, please, give me video interview which explains your side? Irrespective of my views - sharing information is my job!"
"Yes. And you do it quite well. That's why I called you!," said Mr. Aditya Vilas Javdekar and gave me time for this video interview:
Contact Vilas Javdekar Developers:
92600 10000 / info@javdekars.com / www.javdekars.com
Updates:
What happens if a lender takes over a housing project?
Last month, the State Bank of India took over a housing project in Kolkata because the developer had defaulted on repayment of dues to the tune of Rs 176 crore. The Teen Kanya project was promoted by the Bengal Shelter Housing Development, a joint venture in which the state housing board has 49% stake. Therefore, its repossession by the SBI has come as a shock for the 400-odd families that have invested in the project.
Most of the buyers had put money in the project because the state housing board was involved. The project is only half complete and the investors are now contemplating legal action to safeguard their investments.
The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.
What are the options available to a buyer if a lender repossesses a property due to default in payment? Legal experts and housing professionals contend that the lender does have first right over the project. Let us look at the issues involved. Read More
Related Story:
1) Pre-launch offer of Bungalows & Row Houses at Guhagar
Subscribe for Free!
To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog
Feel free to call me:
I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call 919860044110
If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.
Yes, my email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.
Join me on Google+
.
Nowhere in the interview does he talk about how he would get the banks convinced about this...?
ReplyDeleteHello Ravi Sir,
ReplyDeleteAmazing! Hat's off to your commitment, very good article. Despite being close to developer, it requires lot of determination to tell truth. Also this show how you are committed to property buyer concern. Good work & once again tons of thanks , it will definitely help millions of property buyer.
Wish you all the luck.
Kind regards,
Arjun
Excellent Ravi.. Normal guy don't even think these details fall in trap. I really appreciate what you do for Pune buyer's. Great Job..!!
ReplyDeleteWith the real estate running dry and not having good amount of sales as middle class people dont have money even to afford 20% of down payment with the current rates in baner or sus road, i wont be surprised if a few more builders come in the same way in your articles. Looking at the defaulters numbers increasing the bank is also coming with strict regularities so i hope it becomes a win game for customer.
ReplyDeleteReally appreciate your efforts for not letting us become fools by the hands of so called professional and customer friendly builders.
ReplyDeleteFew months ago similar scheme was launched near to hinjewadi by one of builder from mumbai and architect was Hafij contractor . I guess it was Xperia low cost housing scheme. Can anybody any buyer throw some light on progress of the project....
ReplyDelete
ReplyDeleteI can't say for sure for if rates are dropping or builders are running out of cash as I see every week new launches.
But if you go by listing of properties on magicbricks.com, Wakad is highest. As of today 1400 properties are on sale and this number is increasing in trend as of now. So maximum number of saleable property is available in wakad. I can easily see connection between this offer and no of properties are available for sale. If this situation continues I see listing number doubling in a year.
Hi Raviji,
ReplyDeleteit was very nice information.because for a normal perosn its difficult to understand this all complex things which you normally publish. Lot of times we learn ,what need to checked etc from your blog.
Specially. when you know lot of builders perosnally and still write about facts...
you are doing great work
harshal
There is never a free lunch anywhere in the World. But we continue to be tempted and fool ourself that we have got a best deal!!!
ReplyDeleteThis "Now or prices will go up " syndrome is a middle class malady. Cancer affects your body, this disease affects your money and present happiness.
You sacrifice your present in anticipation of future assets appreciation, while you provide great cash flow to the builder so that he can spend your money which you (you or banks on your behalf.This is even worse as this 20:80 business makes both banks and builders richer at your expense) give him interest free.
The stuff he talks about being concerned about buyers is salt over wounds .
Great job Ravi !! Really appreciate your efforts on this post and getting us valueable information.
ReplyDeleteHi Ravi, No nationalised bank will finance unless there prescribed 20 % own contribution criteria is fulfilled, either by stage-wise disbursement schedule or otherwise. Now tell me who will pay to bank while future disbursement schedule will be in row & when his 10% contribution is over & pockets are empty. Is the kind hearted Builder is paying 10% share of customer to disbursing Bank & getting it reimbursed at he time of possession.
ReplyDeleteOnly Private Banks and Financial institution can do this kind of business.
This comment has been removed by the author.
ReplyDeletejavadekar has increased rate by 100 Rs on 16th august.
ReplyDeletegREAT jOB!!! you seriously haevgot gutts to write against a builder in a chaotic and vitually lawless city like pune.
ReplyDeleteI always read you post I’m eager to get myself a new home and have found from one of your posts about Saarrthi Group. I have found Saarrthi Group is selling properties for sale in Pune will minimum down payment, good to hear that and want to book my flat now
ReplyDeleteSir, many thanks for such informative article. I am always reading your blogs. I am surprise from where you get this courage of asking builders such straight forward question on face. Thanks
ReplyDeleteI have booked flat in this scheme .Although the booking has been done with solely on the reputation of the builder and the oral consent. This is a innovative scheme which certainly helps the buyer and the builder both to complete the project soon and less burden on the buyer as PRE EMI interest will be shared by the builder . Although the RBI has come up with the restrictions on such scheme as this will amount to exposure to real sector only if the builder fails to start construction on time or get the disbursement without the actual construction. ANYWAY the 10% contribution was earlier been allowed by banks and then raised to 80% for creation of security and mortgage value .Otherwise the 10% disbursement is only a deviation which should have been allowed and the builder should have some sort of communication or approval . The other part is the builder consent to reimburse the pre emi interest which is more important than the 20% issue Lets see what happen ...any way thanks for the updates
ReplyDeleteFound it here good blog.
ReplyDeleteI have booked in Yashwin Block B for Vilas Javdekar last year August 2013 under 10% pay sheme however now its August 2014 and still I am waiting for agreement/registration. The builders are not giving proper answers and they keep saying that they are waiting for environment clearance. I already wasted my money...They have not started even..its a plain land..not advice to suffer like me..
ReplyDeleteNow they are asking additional mony for additional 20sqft and reason is "area has given from sanctioning authority at the time sanction"...
DeleteHi Vishal,
DeleteDid you get your registration done for Block B yet. As I am about to book one in B.
Please let me know.
Hi Vishal,
DeleteI am planning to invest in their scheme at Pirangut (Palash Boulevard). They are offering 10% amt of total cost to be paid now and rest of the payment to be made at the time of possession. Please let us know, if you have got your flat registration done and possession. Please share you experiences with this builder and also agreement folmalitiese
Hi Vishal,
ReplyDeletePlease let ,e know, if you got your registration done. I am planning to invest in their Palash Boulevard, Piragnut.
Hi Pranav,
DeleteHave you booked at Palash Boulevard. We are planning to buy a 2 BHK there. PLease reply if you have booked the same.
I am also planning to book the apartment in this. Based on future development like DP road and ring road. Only worry part is water problem as this is not under corporation.
DeleteHas anyone booked a flat in Yashwin Phase II recently? I am thinking of booking a flat in F wing and needed opinion on whether should I go ahead or not.
ReplyDeleteCan anyone give me a reference of someone already living in Yashwin? Just want to know their experience.
ReplyDeleteThanks.
Hi All,
DeleteI have booked a flat in Palash, Pirangut so far no hassle at all, I've been visiting this site since last one year and could compare development since last year, A wing has been completed as promised and some people already started spending their weekends at Palash. domestic water pipeline and everything is functional, drinking water is not available at this moment but they are providing drinking water for time being, however water RO plant shall be soon deployed in the premises and rest of the amenities will be functional by end of December or early January.
I am totally satisfied with the quality of work and material.
Feel free to ask queries if you have any.
Cheers,
Amogh.
Hello
ReplyDeleteHas anyone booked a flat in Yashwin Phase II recently? I am thinking of a flat in F wing and needed opinion on whether should I go ahead or not.
Hello,
ReplyDeleteDoes anybody know about Environmental clearance ( EC ) for Yashwin Anand ?