Ravi Karandeekar's Pune Real Estate Market News Blog

Tips for Pune property buyers who are planning to visit CREDAI Pune Metro Housing Festival 2016 - Mega Property Exhibition on 15th, 16th & 17th January at SSPMS Ground:

CREDAI Pune Metro Housing Festival 2016 - Mega Property Exhibition on 15th, 16th & 17th January at SSPMS Ground

Tip No. 1: A builder may abandon a project:

When you book a flat - you know that - builders do not give possession in time. But, it never comes to your mind that the builder may abandon your project and vanish into thin air.

Yes! Truth is - for various reasons - builders abandon projects!!

And there isn't anything unnatural about it.

If a mother can abandon her baby - what is unnatural about a builder abandoning a housing scheme?

After all, for a builder - a housing scheme is just a venture - an adventure - an expedition - an experiment - an idea - a new year resolution! And, we all know that - most of the experiments & new year resolutions fail. So, failing is obvious. Succeeding is an exception.

Isn't it wise to abandon the adventure when you know that you can not succeed - you can not complete?

What is the point in keeping on trying when you know that you are not going to succeed in losing weight - passing UPSC Exam - climbing Mount Everest?

Point is, when you visit Mega Property Exhibition of CREDAI Pune Metro, keep in mind that any builder can abandon the project & vanish into thin air. And take a risk of booking a flat only if you are prepared to suffer.

To know how the flat buyers suffer when the builder abandons the project, please, visit Aura City at Shikrapur.

October 2011: Aura City at Shikrapur, Joint Venture of Jalan & Maple Group, Launched!

The collapse of Lehman Brothers in 2008, triggered the world financial crisis. The salaried workers of Pune - Auto, IT and all industries - suddenly realized that they could lose their jobs at any point of time & stopped booking flats. Obviously, Pune real estate market went down.

Exactly at that point, when all salaried people had lost hope of becoming prosperous, Mr. Vijay Jalan came into the picture. "Even not so prosperous can own a home" - was the message of Mr. Vijay Jalan. In June 2010, Mr. Jalan - along with Maple Group - launched Aura County at Ubale Nagar, near Kharadi Jakat Naka on Nagar Road.

For the salaried young IT professionals in Kharadi, who were feeling cheated by the recession, Aura County was a hope of becoming a homeowner & living a prosperous life. Just like their senior managers & team leaders - who had became homeowners before the world financial crisis. Aura County received instant bookings & was a huge success.

Aggressively advertised compact budget flats with long list of amenities at undeveloped but convenient location - was the modus operandi of M/S Jalan & Maple Group. Risk addicted property investors & prosperity addicted salaried young couples who were craving for home ownership were their target market.

For the next 2 years - from 2010 to 2012 - Jalan & Maple Groups were in top form. From Neo City at Wagholi to Eco Valley at Kanhe Phata - one after another they went on launching new projects. Every project went on receiving huge response. Aura City at Shikrapur was one of them.

A 1 BHK Flat (373 sq.ft. Carpet) for Rs. 10 Lakh (Actually all inclusive property price was around 12 Lakhs) & a 2 BHK Flat (487, 517, 551 sq.ft. Carpet) for Rs. 12.5 Lakh Onward (Actually all inclusive property price was around 18 - 20 Lakhs) was the offer of Aura City. 1,000 plus units in 4 story buildings with lift on 16 acre plot of land at Shikrapur, convenient for the workers in Ranjan Gaon & Sanaswadi industrial belt on Nagar Road was the description of Aura City. Luxury of a clubhouse & swimming pool was the bait to catch the buyers. Maximum returns on investment & Best Amenities is equal to Luxury LifeStyle were the promises of M/S Jalan & Maple.

The greedy & foolishly optimistic stupid property investors & the naive low salaried industrial workers found Aura City quite tempting. On the day of launch, 1st October 2011, the site of Aura City was looking like a vegetable market. Without knowing what exactly they were doing - people were booking flats as if they were buying potatoes & onions. Actually, they were not booking flats - but investing in one more venture of M/S Jalan & Maple. Unaware about the reality that they may be rewarded for their contribution - only if M/S Jalan & Maple do not fail.

Jalan Group Abandons Aura City at Shikrapur:

Jalan Group Abandons Aura City at Shikrapur

On that day in October 2011, I remember, along with Aura City at Shikrapur, 2 more projects were launched - Darode Jog Properties' Liviano at Kharadi & Suyog Development Corporations' Nisarg at Wagholi.

Curious to know whether the builders succeeded or failed - recently - I visited Aura City at Shikrapur & Suyog Nisarg at Wagholi. You know what I found at Aura City Shikrapur? M/S Jalan & Maple have abandoned Aura City. The people who have paid their hard earned money have not received their rewards - the flats.

M/s Jalan & Maple have not completed the construction of Aura City. Maple & Jalan have spilt. Mr. Sachin Agarwal told me that Maple Group is out of Aura City. They have dissolved the partnership & retired. Now, Aura City is with Jalan Group.

To recover the loan, State Bank of India has given notice to confiscate the land & unsold flats in Aura City.

Result is, Aura City has already started decaying.

When I visited Aura City, for a few moments, Aura City looked like a ghost city.

A few buildings looked ready & occupied. But most of the buildings were incomplete. For a stretch, there was no one on the cement concrete roads. Stray dogs were roaming. Wild grass, bushes & construction debris, drainage pipes, cement blocks were lying here & there. Drainage lines were left open. A couple of wide & deep pits by the roadside were left open. Electrical lines were dangling between the buildings.

I felt relieved when I saw a couple of children playing at the far end. I went there and asked them - "Do you live here? Are your parents at home?"

"Yes! My mother is at home," pointing at a flat one kid said.

I decided to meet his mother & started climbing the staircase. The staircase was dirty. Dog poop was on every landing. Lift was not installed. Lift well was covered with ply board. I didn't see a single electrical meter. I rang the bell but no one answered. So, I went up. Most of the flats were locked. I guess, out of 40 only 4 - 5 flats were occupied. So, I went down and went on roaming around.

At last, I could talk to a few residents. They told me how all of them are suffering. Some are suffering because they have received the possession. Some were suffering because they haven't received the possession. For over two years, construction of Aura City has stopped. Mr. Jalan - the builder - has gone into hiding. He has become inaccessible. He was not paying salaries to the security guards. Not even replacing the bulbs in the staircases. The dark approach road, thieves & unsocial elements, stray dogs, snakes, hard non potable water, power cuts, muddy roads had made their life miserable. The flat buyers in Aura City told me. Feeling sorry for them I returned.

Jalan Group is Down but Not Out - Mr. Sameer Jalan:

Jalan Group is Down but Not Out - Mr. Sameer Jalan

After coming home, I called Jalan Group. Mr. Vijay Jalan gave me an appointment. But he didn't meet me. Mr. Sameer Jalan met me. Mr. Sameer is an architect by qualification. Sameer told me that he is aware about the issues of Aura City. Jalan Group is on the path to recovery. Restructuring of debt is going on. Sameer is confident that Jalan Group will overcome financial troubles.

Henceforth, I am going to look after Aura City. Mr. Sameer Jalan told me.

"That's a good news!," I said.

Let us hope for the best!

Look at these photos of Aura City and please, pray for the flat buyers.

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