Wednesday, September 28, 2011

aftermath of the CCI verdict on dlf

NEW DELHI: Close on the heels of CCI imposing Rs 630-crore penalty on real estate major DLF, several home buyers have approached the competition watchdog alleging unfair treatment by builders.

Post the DLF verdict in August, the Competition Commission of India (CCI) is learnt to have received about 10 complaints against unfair trade practices and abuse of dominant market position by real estate companies, sources said.

"Complaints have been pouring in in the past one month. We have received about 10 complaints against real estate developers," an official told PTI.

The CCI, sources said, will soon hold a meeting to consider if the complaints are to be dealt with individually or collectively as a sector on the whole.

According to the Competition Act 2002, people can filed complaints with the CCI under sections 3 and 4, pertaining to abuse of dominant market position and anti-competitive agreements, respectively.

On August 16, the CCI had imposed a hefty penalty of Rs 630 crore on real estate giant DLF Ltd for abusing its dominant position, and issued a 'cease and desist' order against imposing unfair conditions on the buyers of its flats.

The penalty was imposed on DLF following an enquiry by the competition watchdog on a complaint filed by the Belaire Owners' Association in Gurgaon.

The Commission had also observed that the examination of the DLF case has brought forth several areas of concern pertaining to India's housing sector.

Further, the commission had urged the government to expedite bringing in a code of conduct for the real estate sector "to ensure adoption of transparent and ethical business practices and protect the consumers".

The Commission, which became fully functional in last July 2009, is empowered by an Act of Parliament to penalise the guilty or ban a prevalent malpractice.

Sunday, September 25, 2011

since 2006..rewood residency and other projects

Dear friends,
Its been more than 5 years since Era Landmarks (I) ltd...erstwhile Era infrastructure ltd ( when it started its foray into real estate and then quickly created an independent company to distant the parent company, fore seeing future litigation due to its mal-practises and naturally to save the parent company from the fall out) announced a slew of projects, namely Redwood residency in sec-88, which after an year it changed the site from sector-88 to sector-78 faridabad. The reason given was that the company could not get license for the land in sec-88, but the real reason was that the company never filed for a license in sec-88, but it filed for license in 78, in year 2007 and got licence approved on 19-07-2007 vide license no. 197 for sector-78.
Thus the company showed a sector where it would bring is project but later shifted to another sector not casue it could not get license but as this sector-88 was a prime location and could fetch a better market rate, the company kept this land with itself and bought land in another sector , sector-78 which is the very end of the neharpar region and is totally unconnected and undeveloped area for developing its residential project, that which is called the REDWOOD RESIDENCY.
Its also well known that the company later sold the sector-88 land to RPS group for a substantially higher price and earned a huge profit.
Since getting the license the company started construction, till date in last five long years it has not been able to complete the project, leave alone complete it has not even given possession of any one tower or flat in any one of its towers. must know that this is one of the smallest project in neharpar faridabad, far bigger projects are underway as I write this since 2006 in neharpar faridabad and many colonizers have handed over apartments/ plots to customers from last year it self. If we take an example of Omaxe heights which is in sector-86, they have offered possession to almost all customers of their two bedroom apartments. They have occupation certificate of eight towers. This project is thrice the size of Redwood Residency, era is developing only Nine towers in all...and has yet not been able to complete any one tower...which goes to show not only how well the company is catering to needs of its customers but also how well organized or focused are they even if it comes to delivering the goods on time promised. The actual date for possession of flats in Redwood Residency was 2009....and by the way they are functioning it does not appear they would be in any position to hand over before the end of 2012.
The same case is with its other projects...take the case of DIVINE COURT which was sold to public showing a large green area and was told that the possession would be given within 18 months of sale of flats...why 18 months...cause these are independent floors we have only to construct ground floor plus two floors which should not take more than 18 months...fate or fact is all the green area is converted into concrete area as new independent floors were sold afterwards...without consent of any of the floor holders...and again Era is missing the possession dates of all the Divine court floor owners....
what is even more agonizingly evident that for these two projects ERA LANDMARKS (I) LTD , DOES NOT EVEN HAVE A LICENSE IN ITS NAME......for their project in sector-78 they did get license , which was valid till 18-07-2009...since then ERA has not got it renewed as they have not deposited the remaining EDC amount to DTCP....for divine court in sector-76....they do not have any license in its name. The Big question that everyone is asking is how can the builder continue to carry construction activity without having the very rudimentary clearance from local bodies....will this not be breach of trust that thousands of customers have on the company and what is the fallout of such a criminal breach of trust?? Hope Mr S.S Dillion has the answers!!!!!!!

Monday, July 18, 2011

Era LAndmarks Latest offerings in gurgaon or not

The Latest Messages of several Property Brokers for Latest Launch of Era Landmarks Residential Projects in Gurgaon for Sector-103 and sector-85 are no where on the site of the company itself. Take cue from the fact that the company itself is not saying that they are launching these new residential projects. while the dealers are sms'ing to public at large to buy flats/ apartments in these projects at lucrative rates.
Beware of these acts of Brokers who sell to innocent people something that is not even acknowledged by the parent company. The company is not soliciting sales, its just the brokers who are...with time tested tricks like...RATES RIVISING SOON....these brokers trying to fool people of their hard earned money.
Please check the web site of the and you will see that the company is not talking of any launch of residential projects in these sectors. Yes, there is a claim of  Skyville crest, Sohna road, Sector-68, Gurgaon. Though the company has made out a compelling graphic description of the project but is silent on the acreage of the project, on its website.
Please check before you get trapped by vicious tricks of these unscrupulous property brokers, as by law its mandatory for the company launching any of its projects to get license of the same from the DTCP. As you would be putting in your hard earned money for your dream house, please check if the license is already obtained by the company and its the duty of the broker to give you a copy of the same. The state authorities have made it mandatory for every builder to print the license number on the advertisement of any project that it wishes to sell to public at large. Please get all information on the project from the brokers and simultaneously from the authorities regarding the authentic parameters of the residential project you are buying into. Take great care before you commit yourself, as it becomes a pain later on when you find out facts, which reveal that the brokers have blatantly cheated you and now you are at the mercy of the builder. Takecare and exercise caution. Thanks.

Wednesday, July 13, 2011

mumbai hit again

Three blasts reported from different parts of Mumbai - Dadar, Prasad Chambers in Opera House and Zaveri Bazaar.
its most unfortunate, what is the need for these people to target the common people, everytime there are such blasts there are many people who get killed for no fault of theirs...when will we able to handle our internal security, How many lives we will lose more before the administration, police would wake up to the fact that the lives have meaning, they have to be preserved. We have to stand up again from the ashes like the, rebuild - trust, faith, peace and belief. To this effect we have been a civilization that has risen everytime we have been attacked...we have countered all adversity with a special courage.
Its disturbing to see dead bodies scattered along the roads, human life so selfishly taken away for personal agenda's...but how can we stop this does not lead us anywhere...we have to put ourselves accountable for everything that happens in our vicinity, we all have to take responsibility that no one can ever repeat this act of cowardice..we all have be bull hounds, tracing everything ....everything that we find wrong anywhere...and report it so that our people can have lives of dignity and respect.
we have to maintain peace as the situation demands, but we should also book the perperators of such hineous crime and bring them to justice so that no one else does ever tries to commit such an act again..forever.

Tuesday, July 12, 2011

Entitled to full refund

The Supreme Court yesterday, finally took view of the sorry state in which the home buyers in Noida Extn were pushed after its verdict of returning the land back to the farmer.
Has said now, that the builders should return the amount deposited by home buyers with interest. but amazingly has been silent as to what should be rate of inerest and within what time frame does the court feel the same should be paid back to the home buyer. what would be a justifiable time frame and justified rate of mention.
The builders have started telling buyers (orally) that they would refund within a weeks time...But will they...the builders would first try to negotiate the home buyers to shift to other project and would definately bring in the clauses in the agreement to forth for such negotiation to come through...I do not see builders refunding money so easily...but I have been a long time fool...proven without fault ...many a times.
Now, our dear farmers, have had a meeting recently and are grouping to re-negotiate the land prices with the Noida authority...have emphatically said that their younger generation does not want to go back to farming and if we get 80% of the market value we will be happy to sell our land back...Now, this fact twists everything again in favour of the builder and authorities....see how..
The builder will tell not worry we are re-negotiating with the farmer...the project could be a little delayed but would definately come on this site only...after all we are a trusted company and we would never let your investment fail...
The authorities, will play around with farmers and flirt with the builders...would definately get more than 80% land back after shelling out a higher compensation to the farmers...this effort would definately take some the builders chance to breathe easy and the home buyers more perplexed with what to do in the interim...finally till we have effective and efficient association of the home buyers...we will always be on the losing side.

Homebuyers in doldrum

Dear All,
The Supreme Court of India, in its recent judgement nailed the home buyers completely. Returning the land to the farmers was Infact a good thing, but at the same time why did it not pass strict orders to the builders to return the money of all the home buyers in their projects within 30 days.
The builders and the authorities who are behind this mess always get away with no punishment. The Noida Extn land if was acquired by the authorities where 75% farmers had not taken compensation from Noida authority than how could it put it for sale to the builders. The builders who have said categorically that since there was dispute on this land "did no actual construction work on this land", than why did they promise home buyers possession within 36 months and also how could they take multiple installments. The banks who are suppose to grant loan after due diligence...what have they done....all the three have together cheated a common citizen of India...and all are hiding behind the contracts that they make all buyers sign....which are anti-competition and are absolutely one sided.
Similar situation is now developing in the neharpar area of faridabad. The DTCP in its master plan of 1997 had declared 15 new sectors in greater faridabad. the fact is that from 2006 the builders started selling flats/villas/plots/shops/independent floors etc and soon would be starting to give I write this aprox 50 families have also moved into different project... even after 14yrs and 5 yrs after accepting enormous amount as EDC from all home buyers which runs into thousand of crore...there has been no development work in this area...the very fact that the DPR of the area has still not been prepared...there are no roads except for the village roads....there is no sewerage waste water drainage fresh water electricity from the electric post office...police station...nothing....there is absolutely nothing for 50,000 home buyer in this area who would be shifting into their homes within couple of years...but is anyone even the home buyers....we need to have our own association...big enough for our voice to be heard.

Tuesday, April 12, 2011

New projects by Era landmarks

The Company Era landmarks(i) ltd, has started selling new projects in and around NCR. They are offering apartments in Faridabad, Palwal and Gurgaon. The apartments that they are offering at Faridabad, is a highrise complex that they had sold in 2007 and after a period of more than two years abandoned the project and has now come up with another at the same location by the name of " Divine court, sector-76".
The project in Palwal, is the project that was earlier to be a highrise apartments but after more than two years the company abandoned that project aswell, forced customers to transfer into this new project that is now coming up as independent floors again by the name of Divine court, palwal.
Now lets come to the project that Era is coming up in gurgaon, you all would be amazed that this project was also sold to public in 2007 and has till date not seen any development work.
The other projects that thatthe company started in faridabad is Redwood residency sector-78, it was to be completed by sept-2010 and now the builder is saying that it will take 18 more months and that the project is on time. The central green area shown till date in its plans is not in its possession and it says that it never showed it as its own land. There are three roads that cut through the project but the builder says that if the govt brings in new roads how can he go against the govt. whereas the fact is that his project plan that got approved in 2007 shows all three roads. Therefore please check personally on what you are buying from any builder and do not rush your desicion based on recommendations of the property brokers or investment guru's......your hard earned money is at risk.

Tuesday, February 15, 2011

CCI Cracksdown on DLF

Rejecting the plea of realty major DLF Ltd, competition appellate body COMPAT has allowed watchdog Competition Commission of India (CCI) to continue with its enquiry against the company, which is under the scanner for allegedly misusing its dominant market position.

DLF had moved the Competition Appellate Tribunal (COMPAT) against Competition Commission of India (CCI) for initiating a probe without hearing the accused.

"COMPAT has dismissed DLF's appeal that sought stay on the CCI enquiry against it. They had appealed under section 33 of the Competition Act saying that no enquiry can be initiated unless reasons are recorded to arrive at an 'opinion' that a 'prima-facie case' exists," an official said.

The investigations against the realtor is already complete, with the Director General having found DLF violating, besides others, Section 4(2)(a) of the Competition Act.

Sunday, February 13, 2011


Faced with a double whammy of corrupt real estate builders and lethargic and incompetent civic agencies, the customers of Neharpar area of Faridabad, as it is also called Greater Faridabad, are going to collectively demonstrate outside the HUDA office from MOrning to raise their concerns and greivances, On 1st March,2011.
The Faridabad exchequer has collected crores of ruppees in the name of development charges from thousands of allotees of builder flats/plots from this region. similarly from builders for granting them licences to develop these townships in this area. BUt all that money has not been used to invest on infrastructural development of this region. There are no sector roads, no electrifaction work executed for this region, no water or sewer lines laid down in this area, No telephone lines laid, it has been learnt that HUDA has not even acquired the land laid down in its master plan of last decade, which was to be used for infrastructural development of this region. The bigger question for those thousands and thousands of people is how and when will this area be livable for them. They have already paid almost the entire cost of these apartments, but with no civic amenity these customers can not think of living atleast for the next three more years.That is a very optomistic forecast. The way work has been moving it does seem a difficult target.
The fact is, what is the fault of the thousands of people who have bought apartments in this area and have helped the faridabad exchequer raise crores of ruppees. Thousands of peoples loss is primarily going into the pockets of three agencies- 1) The real estate developer.2) DTCP. 3) HUDA
These people are gaining at the expense and loss of the thousands of customers who had been lured into believing of buying a dream home in the midst of bountiful greens.
An estimated ten thousand apartments are being constructed in Neharpar, easy to gauge that almost fifty thousand people lives hard earned money is at stake. That too, in NCR. Right under the eyes of the urban and housing ministry and the central govt.