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Wednesday, October 5, 2016

What if Hinjewadi IT Engineers were a little less stupid?

Why a Hinjewadi IT engineer should not book a flat in the pre-launch offer of Vilas Javdekar Developers' Yashwin Hinjawadi this weekend:

What if Hinjewadi IT Engineers were a little less stupid?

Yesterday, when I visited Yashwin, opposite Tinsel Town near the 2nd phase of Hinjewadi IT Park, Mr. Aditya Javdekar, CEO & MD, Vilas Javdekar Developers & National Head of CREDAI Youth Wing, challenged me.

"Ravi Karandeekar, I challenge you to write good about me," Mr. Aditya said.

"I know for sure, you will always write bad about me because if you write good about me you will lose your readership. So, you have no option but to keep on writing bad about me and every other builder in Pune," Mr. Aditya added.

"Mr. Aditya, best way to prevent me from writing bad about you is to give me a video interview and present your views. Of course, on my blog - I will take opposite view and try my best to convince the flat buyers how wrong you are. Like me, if you believe in the intelligence of the flat buyers - let them decide what is right and wrong - good or bad for them. But you avoid giving me an interview - so I have no option but to put only my side in front of the flat buyers," I said.

"No. I will not give you a video interview. You are an expert in putting everything in a wrong way. You know? My mother was very hurt when you called me a robber," Mr. Aditya said.

"1 - I didn't call you a robber. I said you are inviting flat buyers to rob a bank. So, the flat buyer would have become a robber if he had accepted your offer. Not you! 2 - My views are always based on principles. According to Governor of Reserve Bank of India - banks must not offer home loan subversion schemes to financially weak buyers - because such activities lead to subprime crises - that's why I was against your offer. I don't have anything against you or any builder. In fact, I admire you," I said.

"Though I don't agree with you - I can understand - but how can you expect a mother to take it lightly if someone calls her son a 'robber'?," Mr. Aditya said.

"I respect your mother. I admire her. She is a brave lady. I feel sorry for hurting her. But - you know - that was never my intention - I use strong words only to communicate my message effectively - you know - how difficult it is to convince a naive young first time homebuyer to say no to your tempting offer," I said.

Then we spoke for a long time. Of course, on real estate, on RERA, on Maharashtra government's policies. Not at all about the event this weekend at Yashwin Hinjawadi.

At the end of our conversation, I complimented him about Yashwin at Maan Gram Panchayat - his first project in a fringe village of Pune which has proper access road! (Yashwin, Yashwin 2.0, Yashwin Anand, Yashwin Jeevan at Sus Gram Panchayat and Palash Boulevard at Pirangut - have no proper legal approach road.)

And you know what? Mr. Aditya gifted me his mother's best seller Marathi book on live liver transplant!

Yashwin Hinjawadi

Since Aditya Javdekar didn't give me any information about Yashwin Hinjawadi, I have to rely on my readers & Vilas Javdekar Developers' booking agents. It means that the information I got may not be accurate. There is a possibility of errors or misunderstanding. So, please, cross check the facts before accepting or rejecting my views.

My main objection is to the modus operandi of Vilas Javdekar Developers.

In these days, when even the government is trying to bring transparency in real estate business by insisting on publishing authentic and accurate information about the project in the public domain before accepting bookings, Aditya Javdekar, National Head of CREDAI Youth Wing, is importing corrupt NCR culture to Pune real estate market.

You know what I mean by corrupt NCR culture?

For me property brokers dominance - criminal practice of pre-launch offers - unethical business practice of pressure selling and secrecy in transactions is corrupt NCR culture.

Which is very harmful for the property buyers.

It's not only harmful but it is against the basic rights of the home buyers.

If you take a close look at the real estate business, you will realize that property buyer is not a consumer.

Real estate development is actually a 'collective investment scheme'. When you book a flat you become the co-owner, stakeholder of the project. Collectively your stake - flat buyers' investment - in the project is many times more than the builder's.

A developer is like a startup guy and you are a venture capitalist. You like the developer's concept and you decide to invest in it. Obviously, you have more powers than the builder.

However, since it is a builder's concept and he has the experience of execution - you - the flat buyers - let him lead the project.

Though you collectively own the project - you let the builder work as a chief executive officer of your operation.

For the sake of earning tax revenue from the real estate business - state & central governments consider that the builder is in a business of providing service and collects VAT & Service Tax.

But the government conveniently ignores to recognize that the flat buyers are actually investors in real estate ventures. It avoids to recognize that real estate development is a collective investment scheme and do not let SEBI to regulate.

The government can afford to refuse to accept flat buyers' ownership. But you - the flat buyers - know well that without your involvement, without your money, no builder can develop a housing project. Aditya Javdekar can not build Yashwin Hinjawadi.

The modus operandi of Vilas Javdekar Developers

But how does Aditya Javdekar treat you?

Does Aditya treat you like a venture capitalist?


Aditya considers that you are some needy poor homeless person sitting on a roadside.

"Go and catch all - Don't bother about names - They are nothing but stray dogs - Give them a token number - Make them stand in a line in front me - I am a kind man - I am going to give them homes!" - Aditya tells his agents.

"You all are lucky. Because of me - you are not going to remain homeless anymore. I am here to distribute houses to you. When your number is called - get up and go in - choose a home - one after another - in the queue - of course, there is no compulsion - if you don't like - feel free to refuse - I am a very kind man - God has given me this job - but remember if you say no - chances are you may never get a home in this life" - announces Aditya.

And, you know what? Without applying their brains many Hinjewadi IT engineers have booked flats in Vilas Javdekar Developers' Pallasio / Prudentia Towers at Wakad, Yashwin 2.0 & Yashwin Anand at Sus.

One channel partner of Javadekar told me that 400 + people already have taken tokens for Yashwin Hinjawadi! Of course, most of them are Hinjewadi IT Engineers from northern India - like Uttar Pradesh, Madhya Pradesh, Bihar & Rajasthan. And of course, some stupid Maharashtrian investors!

The channel partner also told me that when real estate was booming Punjabi IT guys were very active. And now, in the slow down, Biharis & Bhaiyyas are buying. This is mostly because of the feudalistic culture of north India where middle class is weak. May be. I don't know.

For me all Hinjewadi IT Engineers are one & the same. I give more importance to the state of mind than their home state.

So I keep on wondering - why do Hinjewadi IT engineers do something so stupid? Why do they let Aditya Javdekar treat them like Bhed Bakri? Don't they realize that eventually the builder will slaughter them?

Why are these Hinjewadi IT Engineers not at all assertive - not aware about their role & rights as a flat buyer?

Of course, all of them have brains. They are intelligent & educated. What all they have to do is just be less stupid.

According to Balazs Aczel, a professor at the Institute of Psychology at Eotvos Lorand University in Budapest, people do something stupid because of these reasons -

1) Confident Ignorance - sometimes people overestimate their ability.

One of my readers, who has 30 lakhs in his bank account, asked me - Instead of booking a 2 BHK Flat for 53 Lakhs at The Nook at Tathawade - can I book a 3 BHK Flat for 65 lakhs in Yeshwin Hinjawadi?

I asked him - how much home loan will you take? He said 35 Lakhs.

I asked - What would be your EMI? 33 - 34 K - he said.

What is your monthly income? - I asked. 60 K - he said.

Can you manage your family's monthly expenses in 27 K? - I asked.

He said - It would be difficult. My wife is in a family way.

2) Lack of control - Aczel says people lose control over themselves because of "obsessive, compulsive, or addictive behavior."

I know that I do not have enough money for down payment & my loan eligibility is not enough - still I can't prevent myself from visiting the sites & property exhibitions. I am always searching web for the good deals. I am completely obsessed with the idea of buying a home.

3) Absentmindedness — lack of practicality - People do stupid things when they are not paying attention or simply aren't aware of something.

I asked one of readers - Does Yashwin Hinjawadi have environmental clearance?

The broker told me that the project has all necessary sanctions - my reader said.

Did you ask specifically for EC? Did you visit ec.maharashtra.gov.in? - I asked.

What is it? - he asked.

Okay. What about water supply? What about sewage? - I asked.

I was so impressed with the price - and the agent told me that - I will get all info on the 9th - I gave him a cheque of 21,000 without asking all these things - my reader said.

Okay. What is the rate? - I asked.

I don't know the rate. The agent told me the package price - 2 bhk - 850 - 950 sq ft for 48 to 54 lakhs and 3 bhk - 1100 - 1200 sq ft for 65 lacs max. - my reader said.

Okay. That's the saleable area - it means nothing - what is the carpet area? - I asked.

I don't now. I told you - Javdekars will announce that on 9th - he said.

Was it wise thing to give a cheque of 21 thousand without knowing the basic details? - I asked.

No. It was so stupid - my reader said.

When I was reading the sign boards on the compound wall of Yashwin Hinjawadi, one channel partner caught me. Looking at me he thought that I must be some investor.

"This is the best investment opportunity in Hinjewadi!," he said.

"You read my mind! How much do I have to invest & how much appreciation can I expect?," I asked.

"See, if you book in this pre-launch offer - you can get a much lesser rate - than the ongoing market rate in Hinjewadi - the current price list rate in Hinjewadi - is around 5,100 - 5,500 and deal closing rate is around 4,800 - 4,900 - Javdekars always offer lesser rate than others," the channel partner said.

"Lesser is good - but exactly what rate Javadekar is offering?," I asked.

"That I don't know. In fact, no one knows. Aditya Sir will declare the rate on Sunday. What all I know is the package. What is your requirement?," the channel partner asked.

"If you don't know the rate - how can you say that Javdekar's rate would be lesser than the other projects in Hinjewadi?," I asked.

"Because last 3 times - he has done the same thing - offered lesser rate than the neighboring projects," the channel partner said.

"It mean that the builder is getting lesser rate but when I will sell my flat - I will get the same rate like any other flat in any other project in Hinjewadi. Right?," I asked.

"Now, you got it! You will get a head start of nearly 4 lakhs!," the channel partner said.

"Okay. When should I sell?," I asked.

"You will get possession around October 2019. The entire project will be ready by 2021 - 2022. You will get better returns if you sale in 2022," the channel partner said.

"5 - 6 years! How big is this project?," I asked.

"10 acres! 4 towers of 21 stories. Around 160 flats in each tower. Plus a mall on this main road," the channel partner said.

"Sounds good. Tell me about appreciation in 2022," I requested.

"See...Megapolis was launched in 2009 - 10. At that time rate was 2600. Today it is selling at 5,500. Double appreciation in just 6 years!," the channel partner said.

"But didn't you say that the deal rate is around 4800 in Hinjewadi?," I asked.

"I mean you can expect nearly double appreciation - 65 x 2 - in just 6 years!," the channel partner said.

Poor fellow didn't know that Megapolis was launched in April 2008 and the launch rate was Rs 3,250 per sq ft for 2 BHK and Rs 3,300 for 3 BHK Flat! Then in December 2009, Sparklet Megapolis Smart Homes 1 was launched at the rate of Rs. 2,300 & 2,350. Smart Homes 1 became hot cake only because all inclusive price of a 2 BHK Flat of 750 sq.ft. carpet area was around 25 - 26 lakhs! Which was within a budget of a young first time Hinjewadi IT engineer. Today, only working couples can buy a 48 to 54 lakh 2 BHK Flat in Yashwin Hinjawadi and remain a slave of a bank for life!

When Megapolis was launched - people were worried about lack of social infrastructure in Hinjewadi. Still they booked only because of the traffic jams at Hinjewadi & Wakad chowk - every morning and evening.

Today, considering the ongoing & upcoming numbers of residential & commercial projects - people have stopped worrying about lack of social infrastructure and have started worrying about traffic congestion on every meter of the entire length of all roads in Rajiv Gandhi Infotech Park Phase 1, Phase 2 & Phase 3.

It means that the stupid Hinjewadi IT engineers have got the government which is as stupid as they are!

Stupid IT Engineers book a flat without bothering to know anything and stupid government converts industrial zone into residential zone and lets builders build flats - without bothering whether can so much population live in Hinjewadi.

Is it right to let the people live in all these projects - when Hinjawadi Industries Association (HIA) is unhappy about insufficient water, road, drainage, waste management systems in Rajiv Gandhi Infotech Parks?

Is it wise to let the builders develop residential schemes in Maan & Hinjawadi gram panchayats which have no basic urban infrastructure?

Is it wise to book a flat in Hinjewadi - when huge number of flats with basic urban infrastructure are available at competitive rates in PCMC?

To consider all these things - you don't need to be more intelligent. You just have to be a little less stupid.

What say you? Please, share your views in the comments.

Related Stories:

1) Intellectually Weaker Section (IWS) of Hinjewadi IT Engineers can learn a lot from this girl

2) Hinjewadi IT engineers who wish to become God

3) Sad story of a son who purchased a flat in Sus

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  1. Is that land on lease from MIDC?

    I believe Megapolis is on 99 year MIDC leased land.

    In most places, property on leased land tends costs less than an equivalent property on Freehold land (as there may be future rentals due to extend the lease). Don't see this apply to Pune properties, or if anyone cares at all...

  2. Ravi - academic intelligence and worldly intelligence are two different things altogether . Most of these guys are from outside Pune and they are conned by builders due to their desparation to own a home . Add to this status , ego , family and peer pressure and decisions are made by heart than brain . I rented near this place near my office despite having house in Pune city for 5+ years but shifted back after having kids due to lack of quality schools and hospitals in this area - lot of IT people are just income rich and not wealthy - flaunting houses which belong to banks for which they pay hefty EMI without even basic infra and poor construction quality - schools and hospitals charging very high . Net result is now I'm financially independent , travel by company bus and kids are in good schools in Pune city . Having said so the hinjewadi guys are at least doing their jobs honestly and slaving for the flats - what about other non hinjewadi persons who buy property in cash ?

    1. Surya,
      Fantastic post, totally agree.

      "what about other non hinjewadi persons who buy property in cash ?"
      - These don't buy for self use, neither stay in such useless location. More often it's just to park black money or to flip them to convert black money to white but this too has now become difficult due to new laws like Benaami property act. This is one of the reason why many builders are going bankrupt & crash in property prices may take place anytime.
      See this news about such people who used to buy property in lot of cash & put them as collateral to take loan; read white money.

      There’s stress building on loan against property segment of NBFCs :
      A combination of stagnant property prices, especially in metros and large cities, which are the primary markets for large and medium ticket LAP, and squeeze on refinancing due to risk aversion building up in some financiers, is bringing stress to the fore.


  3. Ravi,
    There is no point in explaining same things time & again to IT Yedas. Let them buy wherever they want so that we can get one more case study, Lol.
    This Yedatech Industries Association rather than going around talking about traffic, water, sewage etc. should take special classes in their campus about what needs to be done while buying a flat & 10 marks test linked with their performance should be taken !

    Coming to this Vilas Javdekar builders, he is one of biggest crook in Pune. He had offered free rent incase of delays for his older projects, but despite delays, no rent was paid. Possession was also delayed. Lot of complaints when he tied up with HBC & gave fake assurances to buyers. Funny thing is Sanjay Deshpande, who talks a lot about sanctions, timely possession etc. is partner is some of his projects ! Check this link -


    And corrupt NCR culture will be built in Javdekar builders, else how he would have been able to be 2nd generation chief commander of Lashkar-e-CREDAI ?
    The moment Lashker-e-CREDAI name is seen, one should know fully well that he is dealing with a robber, dacoit combo who also terrorizes peace of buyers mind.

    And rather than spending 65L at such third class location with non existing infrastructure for a flat which may not be delivered even after 5-6 years, it's better to rent good flat in very good location for fraction of this cost & enjoy quality life with big savings. Builder will look for 250-300% profit margins (ofcourse they will keep crying how they don't have any profits left, high land cost, construction, delay in sanctions, labor blah blah) thing is buyer should see whether it's worth it. Why become slave to builder & banks ? True ownership of anything is when there is no loan, no EMIs. Don't know why Yedas don't get this point ?
    See how builders going bankrupt & buyers are left with neither money, nor flat. Do read comments below too.

    Builders find giving refund on delays tough -


    Those who think buying in third class locations without proper infra should read this recent news -

    This is what Hamid Ansari will not see when he drives into the city today -

    Green curtains have been used to camouflage piles of garbage along way; gram panchayats cry foul, claim lack of dumping grounds.


    Some recent cases how Pune builders cheated buyers by not providing what is mandatory as per law. List includes Vilas Javdekar Palash, Wakad; Nandan Inspera, Balewadi; Swiss County by Rama Group, Thergaon, Sanskruti, Wakad, Sidhivinayak Group etc.

    In other news, real estate hoarders are getting badly hit. Many bought flats as investment & put that as collateral for another loan & now these are becoming bad loans due to defaults by these real estate hoarders.

    There’s stress building on loan against property segment of NBFCs :
    A combination of stagnant property prices, especially in metros and large cities, which are the primary markets for large and medium ticket LAP, and squeeze on refinancing due to risk aversion building up in some financiers, is bringing stress to the fore.


  4. The strategy of VJ is attract people by giving flats with less rate than other projects in that area, but buyers forget that carpet area of flat is not yet disclosed may be loading will be higher than the other projects in that area.I would suggest check all approvals Approve plans for parking amenities as well as check loading if flat size has mentioned 850 to 950 and if we considered 35 to 40% loading then your carpet area size will be 703 for 950(considering 35% loading and flat carpet area may be 678 for 950( considering 40% loading, so you are getting less carpet area if loading is considered as 40% though price is looks in control of a buyer you are in loss in carpet area( carpet area includes flat + dry and main terrace areas), so under stand builder trick. would suggest check approvals and plans water system etc .VJ has introduced this strategy(sell flat with low rate than others, so it is up to you what you want... Low cost with adjustment in carpet area or average cost with good carpet area.there are different strategy established by builders understand them and then take your decision.Don't go ahead if you find approvals are pending. would suggest before signing on any paper check it twice & go ahead if approvals & other things(EC) are cleared. Make a note that this is not your first & last chance to book your own home.So be alert and take your decision.Best of luck.

  5. how does the property look now when the Price quoted is 4195 and loading is 35%...

  6. Well, I have been a fan of Ravi Karandeekar's blog but I find myself offended with the use of "Stupid" repeatedly for an IT Engineer.
    You know grass is always green on the other side. But it is only when you go to the other side you understand even the cost of watering and maintaining the grass is also high on the other side.
    As there are lot of elders and more knowledeagable people on this forum so I would like to keep it short and to the point.
    First of all, I am a UP wala bhaiya and I have worked in Hinjewadi IT Park/Kharadi IT Park and stayein Pune for more than 3 years - I own my flat (not in Hinjewadi) in PCMC.
    I stay in Singapore now and most of my friends from Hinjewadi IT Park after their marriage have been shifted to US/UK and other developed countries.
    Why IT people do something which appears foolish to others? Are all IT people really dumb? Lakhs of people in IT Industry - all seem to be getting handsome salary sitting infront of computer yet unable to make practical decisions?

    Every human being is capable of deciding what is good and what is bad and what appears correct for me might be incorrect to my friend but again decision is a matter of choice and if all the IT people are doing similar things there is definitely some background/mindset that is behind these decisions.
    As we stay in abroad we find that social and business infrasctructure is developed by governemnt. It is government's duty to set up minimum set of standards like schools/hospitals in close proximities to residences. Development of local markets for grocery needs/localised clinics for general medicines/bus stop for connectivity to nearest metro station.

    If I give example of Singapore(and most of the developed cities like London/NewYork/Sydney) the citizens commute by public transport. So the possibility of getting stuck in traffic jams(like those in Pune/Bangalore) is ruled out. Even the rich commute by first class infrastructure which is maintained clean and safe with the use of public enforcement cameras. Any pick pocketing/molestation attempt even in late hours is ruled out as even the police stations are placed close to the residential/official areas.

    Infact each area is developed as a separate town, this town is further divided into streets and blocks:
    Each town has it's own metro station:
    Connectivity through buses to different streets and walking/cycling tracks to each blocks.
    The towns have mixed development that means - children's playing area - community club - gyms/swimming pools - schools and offices.
    Something which we dream of in our country.

    As an IT engineer I understand that my country is on the growth of development.
    In the city where land is limited - imagining full fledged projects which are able to sustain on their own - is hard to imagine due to two reasons -
    1.Limitation of Land
    2. Cost of Land.
    When builder advertise their projects with large land parcel and mention that there is an upcoming metro connectivity / proposed ring road or airport - we understand that what the builder is saying is correct - because abroad also what one says is liable to do or face legal fine/penalty - unfortunately Indian system is not like that.
    We want to minimise travel time and want to spend more time with family.
    Hinjewadi/Magarpatta/Kharadi IT Parks are latest examples of mixed developement so booking a flat in these areas is definitely a plus to avoid travel congestion.
    Moreover - looking at past history these places have provided good appreciation to the investors so people will keep on buying flats around these fringes - maybe they are getting fooled if you look from a localides' perspective.
    Lot of effort is required to earn the money and every person understands the value of money - but with limitations and still dreaming to provide best in class services to our family and uplift their standards people stretch beyond their limit to make ends meet.

    Would like to invite your replies on my comments