Nagpur: Nagpur is sitting on the time bomb of dying property deals that are gradually taking dubious turn! Over half a dozen real estate players in Nagpur have been defaulting on their commitment of doling out possession of homes to the customers who have been frustratingly healing the dream of moving into their homes for years on end. Reliable sources informed that many of the builders and developers in Nagpur have defaulted on bank loans and are on the verge of bankruptcy. The situation has indicated towards an alarming trend putting the investors’ huge money at high risk.
Crores at stake!
Crores of rupees of the investors and home-seekers have been put at stake, thanks to the slow pace of growth, consistent decline in property sales leading to more bank loan defaulters and the red tapism of the sanctioning authorities which have been choking the approvals for more ‘personal gains’ than official!
Backing off on commitment
Interestingly the top players in the segment have fallen under the dubious list. Right from Ensaara Metro Park, the so called ultra urban township in Pipla near Besa, Ashtavinayak Empire in Jamtha, Appaswami Infrastructure’s Swamipuram and Provogue’s Prozone Palms in Chinch Bhuvan, Sahara City in Jamtha, Moraj Waterfalls and First City in Mihan, and not the least even Rachna Construction have substantially delayed their projects beyond limit. All of them have breached their commitment period. Even more than double the period of possession has passed in most of the cases but the developers are ignorant towards the buyers.
Tip of the iceberg
A source close to the situation revealed that property demand has hit rock bottom in Nagpur and the ‘Titanic’ of the hugely hyped real estate giant may sink anytime. A recent case of Gladstone Infrastructure brazenly violating its commitment to hand over the possession to the buyers even after 6 years, have opened a can of worms in the dwindling property market. “This case is just the tip of the iceberg, there are many more caught in similar situation,” affirms a source. Appaswami infrastructure in Chinch Bhuvan has been turning aside the buyers inquiring for the work commencement, for more than a year. “The builder had thrown open scheme of full down payment and offered huge discounts on its apartments in G, H and J wings launched in November 2014. He promised to commence the work in March 2015. But he deliberately kept on delaying the work, and till this date he has not started yet. In the name of full down payment, the builder collected crores of rupees and no there is no sign of him beginning the work,” said a source, adding the situation is certainly pointing out to something murky and suspicious. Whenever the buyers inquire about their work, he kept on assuring that it has been under process of sanction. “He has stretched this beyond limit and irony is that, meanwhile, he also announced K and M wings, without even digging foundation for the previous schemes,” informed a buyer. Another reliable source added that the owners of Appaswami Infrastructure has diverted the funds to some other projects and trying to cover up their act by blaming it on authorities.
Waiting for 10 years…
Similarly Ashtavinayak Empire, previously name Ashtavinayak Planners and Developers, a firm owned by Ajay Jaiswal and his partner Girish Jaiswal, has been making tomfoolery of not only the system but also taking their customers for ride by hanging on the projects for more than 10 years. None of the company’s projects has been completed – Palm City in Jamtha, Ashtavinayak Empire in Besa, another project behind VCA stadium Jamtha and one more residential in Wanadongri. “All projects are either stuck in sanction or halted, as no proper approvals were taken. We are still surprised why the owners are still roaming free. They should have been put behind the bars as they have seriously defaulted on possession date and not even returning buyers’ money.”
Middle class buyers suffering big time
The prime sufferers of this rigmarole are the customers, especially middle class buyers who have put in their hard earned money while also facing the interest on loans. “This is the dead investment as we are hit from all the sides. On one hand we are made to run from pillar to post with no substantial yield, we are equally faced with the EMI pressure along with the house rents. We are forced to face this, thanks to the apathy of builders who blame it on NMC and NIT – the prime sanctioning bodies in Nagpur.”
Black money connection
Sources suggest that black money trail has something to do with current situation in Nagpur’s real estate. As the government has tightened noose on black money, the funding for these projects have been abruptly stopped. This trend fuelled the doubt of flooding black money into Nagpur’s real estate market. As a result many projects are lying incomplete. To justify their stand, builders often blame it on sanctioning authorities who too are dilly dallying over the situation.
Nagpur Today View
Before the situation worsens further and the buyers lose their money, it is time to act. Nagpur Today vehemently opposes any justification from the builders who have choked the buyers’ hard earned money for years. The builders should adopt positive and glitch-free approach. Instead of offering bookings on unsanctioned properties, the builders should have got it sanctioned first. The telling slack in property market also points out to something more than what meets the eye.
Nagpur Today Help Forum
Nagpur Today requests all the affected property buyers to send their details and we will publish the case and bring it to the notice of authorities. We can also keep your information confidential if you want but do not stay back! Get up before it’s too late! Send us your complaints if you too are suffering apathy of builders who have defaulted on possession or committed any other glitch, to firstname.lastname@example.org
You complaint should include basic details like year of booking, name of the builder/developer and site location, funds given, commitment of possession etc.