Sunday, March 15, 2015

Are Pune property buyers so dumb?

After Kolte Patil Developers' Nest Fest,
Pride Purple Group's Tag Your Home Expo &
Maple Shelters' India Housing Day - 
Darode Jog Properties have come up with EPL Offer
- Exclusive Pre Launch Offer! 
Because, the builders in trouble believe that
- when you can't beg or borrow -
By offering insignificant benefits these builders are trying to steal your "home loans". 
These builders are trying to trick you to borrow at high interest rates and 
giveaway those moneys to them for free! 
Free money! 
Are Pune property buyers so dumb do risk their lives
to save a builder's sinking business?

Kasturi & Rekha of Vastushodh Projects at Darode Jog Properties EPL - Exclusive Pre Launch Offer at Darode Jog House

Forget about a flat - I am worried about your 50,000 rupees!

Yesterday evening I visited Darode Jog House on Apte Road, the venue of Darode Jog Properties' EPL - Exclusive Pre launch Offer - a 4 day - 12, 13, 14 & 15 March 2015 - event.

Oh! No!! It's not an event. It's "deal".
(Ravi Karandeekar, you were in advertising, you know that when you plan a kill - even in Marathi ad - expert misleading advertising copy writer uses English word "Deal"!)

Mr. Parag Borawake, General Manager - Marketing, welcomed me and took me on the toure of venue. Darode Jog has made arrangement in the side margin & parking of the building. Quite a few property buyers were there and in general all tables were busy. Mr. Parag was happy about the response. On one table, I saw two lady salespersons from Vastushodh Projects (

"Did these girls come with the formula or what?," I asked. But Parag didn't get me. So, I asked him again, "Did Setu Advertising - the owner of this pre-launch offer formula - send these girls?"

"I was short of manpower. So, I requested Vastushodh to lend me their best people. We are good friends," said Parag.

I know. All builders in Pune are good friends of each other. You copy each other. You join hands to establish collective dominance over Pune property buyers. Collectively you hike the property prices. Collectively you violate environmental clearance. Collectively you abuse & exploit property buyers. I know. I said to myself.

"But don't behave like your friend - Vastushodh Projects. As per the offer terms - please, refund 50,000 on or before 31st May 2015. Otherwise, if someone gives me interview for not getting refund in time or not getting a flat - I will publish it on my blog. Now, you must have realized that - if I can publish a complaint against my dear old friend - Sachin Kulkarni - I can publish complaint against any builder. Please, don't make me do that," I said.

"We are very efficient. In case of rejection of applications - we will immediately refund 50,000 interest free application deposit. But - between 1st & 15th April - if the applicant refused to accept the flat - we have offered - I will do my best to accommodate him -  to convince him to accept our choice - or if the applicant has any issues - I will do my best to help him - you know - for me confirmation of the flats is more important than the number of applications received," said Parag.

That's the problem, Parag! You are after the home loans!!

I am worried.
Who knows? It may happen something like this -

Under this offer, at the pre launch rate, Darode Jog releases 100 units of 1 BHK Flats in Padmanabh III on Dehu Alandi Road at Moshi.
But, Darode Jog receives 200 applications for the same.

Flat No. C 305 is offered to Mr. X.
He refuses to accept it.
He wants a flat on 5th floor - Flat No.  C 502.
But C 502 is gone.
Now what?

Darode Jog is more interested in getting the home loan of Mr. X than fulfilling his wish.
So, Parag will try to offer the same flat to rest of the 199 applicants.
It will be a time taking exercise.

All this time - first Mr. X will be pressurized to compromise.
Then he will be neglected.
Mr. X will decide to drop out - cancel his so called booking.
Mr. Parag is not ready to let him go.
Parag will try to convince him to wait for some more time.
Don't rush  - since we have received more applications - we may open one more building - in that building I will give you a flat of your choice. Parag will argue.

Lots of time has already gone - now, why not wait for some more - Mr. X will convince himself to wait.

Why did Darode Jog come with Exclusive Pre Launch Offer?
Because -
1) 50,000 interest free application deposit  x 500 applications = Rs. 25,000,000. Yes, interest free Rs. 2.5 Crore would be quite useful. No doubt. Development charges and site development costs are too much. But thats not all.
2) Mainly Darode-Jog wants home loans of 500 applicants.
3) No. Not only that! Along with that Darode Jog wants higher launch rate. And their bigger home loans.
In this case what is the point in opening new buildings to accommodate extra applicants?
The decision is made. No new buildings. Some 3 months have gone!

All these months, Mr. X went on calling.
After some time, all salespersons start avoiding taking his call.
At last, Mr. X manages to catch Parag Borawake.
Sad Parag gives bad news - No new building.
Either you accept some flat - if available - I don't think there is any - but you can always try your luck - or wait for some time - soon, we will launch the project.
Choice is yours.
If you decide to cancel - I will refund your money in a week.
Assures Parag.

I am ready to wait. But I want the same rate. Insist applicant.

How can you expect the same rate?
When I offered the flat - you refused it.
All this time - I was trying to help you to get a flat of your choice - and what are you doing?
By demanding Exclusive Pre Launch Offer rate
- are you trying to punish me for helping you?
I was ready to  refund your money when you refused the offered flat
- you said that you are ready to wait.
Now, asking the pre launch rate is unfair - unethical - illegal.
You have to pay the launch rate. Says Mr. Parag Borawake.

Mr. X cries. Shouts. Demands refund.
Goes home and starts waiting for the cheque.

After a few days, Mr. X consults a lawyer.

I have booked the flat. But the builder is trying to avoid. What should I do?

You haven't booked the flat. You have just applied for the flat. The lawyer says.

No. I have booked the flat. In Darode Jog Properties' EPL - exclusive pre launch booking offer.
"Only in 50,000 book homes which will give you profit of  Rs. 1.7 to 32 lakhs" - was the offer.
Says Mr. X.

Pre-Launch Offer is illegal.
No builder ever accepts any booking - no pre launch booking - no booking at the launch.
All are only applications. Not bookings. Says lawyer.

But it was a pre launch booking offer. Look at this 4 page supplement in Sakal. Says Mr. X.

Do you know English? Didn't you read these terms & conditions at the bottom of the last page of the ad? Asks the lawyer.

No. I didn't. The type was too small. I missed it. I only read ad. Now, what? Asks Mr. X.

The builder offered a flat to you - the builder's letter is the proof.
What happened? Asks the lawyer.

I didn't like it. I wanted a flat of my choice. I was buying a flat. I was paying for it. Builder was not donating a flat to me. It was not a gift. I was investing my blood & sweat in my home. I wanted a flat of my choice.  So I refused the flat builder offered to me. After that what happened is a long story. Says Mr. X.

Point is - you can't say that the builder didn't offer a flat.
There is no proof - written document - which proves that you were taken on a ride.
You can demand your 50,000. Interest free application deposit.
But you can not demand a flat at the pre launch rate. Declares the lawyer.

What about the breach of trust? Asks Mr. X.
What about it!  Laughs the lawyer.

If you view the video of Amruta & Hemant, like me, you too will start worrying about 50,000 interest free application deposit you pay to Darode Jog Properties.

By the way, normally, when you cancel your booking - getting back your booking amount from the builder - is always a big problem.

The builder demands irrational cancellation charges and takes a lot of time to refund your booking amount.

For example - 'Administrative charges towards cancellation at Teerth Towers Sus Baner are Rs. 50,000! At Metro Jazz Mhalunge Baner - cancellation charges before agreement are Rs. 30,000!

Songbirds at Bhugaon says - In case of cancellation, the application / booking amount will be refunded within 60 days from the date of cancellation, provided the agreement is not done.

In an abnormal situation like this - when a builder's survival depends upon getting maximum number of home loans in the shortest period of time - not only property buyers but the builder too becomes a victim of such 'quick fix marketing offer'! Without realizing builder's salesperson stops selling and begins killing. Killing his own company.

Forget about 50,000 - Wise property buyer will not pay 5 paise!

The Old Man from Nashik Who Booked a Flat at Second Innings - Senior Citizens Homes in Exclusive Pre Launch Offer by Darode Jog Properties

After visiting the stalls in the side margin & parking, Mr. Parag Borawake took me inside the Darode Jog House.

"On this stage - we hand over booking receipt - shoot photo - frame it - give it in a few minutes - as a memento!," pointing at the stage in the waiting lounge, Parag said.

When we were at the waiting lounge, a representative of Darode Jog entered with one old man & two old ladies. They were given their booking receipt. When the official photographer was shooting their photo - I also shot them.

The old man with the two old ladies got down from the stage and sat on the sofa - waiting for their photo frame. The old lady saw the scache of Pandit Bhimsen Joshi on a display board laying in the waiting lounge.

"We are big fans of Bhimsen & Kumar Gandharva - at any point of time - their record is playing in our home!," said the old lady.

"We sponsor Sawai Gandharva," said Parag.

"Yes! I know!! For the last 20 years - we are attending Sawai - even when we were at Nashik - let me introduce myself - I am from Nashik - a few years ago I retired from the senior post in Security Press - and shifted to Pune - mainly to be with my daughters - who stay on Prabhat Road - today - I have booked a flat in your Second Innings - senior citizens homes," said  the happy old man.

How can an experienced old man can be so naive?  Even he is under the impression that he has booked the flat! Hasn't he read the terms & conditions in the ad? There were  25 of them -

1) The form is available for free of cost.

2) This is neither a booking nor a registration form. It is purely an application form.

3) The unit cost being offered is non-negotiable.

4) The sanctioned floor plans for the homes will be shared in the month of June 2015 and the work will commence in July 2015.

5) One applicant can own more than one flat / plot. For this, separate applications & cheques need to be submitted for each of them.

6) At the time of filling the form, the applicant should choose only ONE option of flat / plot type  from only ONE project and ONE location. In case any additional choice is marked, the application will be considered invalid.

7) Car park will be provided to all flats except 1 BHK. For 1 BHK common parking will be provided.

8) The interest free application deposit is Rs. 50,000/- per application. The cheque for the same should be drawn in the name of Darode Jog & Associates. The validity of application is subject to realisation of the cheque. In case an application gets cancelled or deemed invalid or a flat is not allotted , the interest free application deposit will be refunded on or before 31st May 2015 in the name of the applicant.

9) The applications are to be submitted at Darode Jog House, 12/12, Apte Road, Deccan Gymkhana, Pune 411004. Applications will be accepted between 10 am and 7 pm. No other place has been authorized to accept the applications.

10) To submit the application online, is the only authorised website.

11) Application with incomplete information will not be considered.

12) The forms have to be submitted only from 12th to 15th March 2015. Last date for submission of forms is 15th March 2015 by 7 pm. Forms will not be accepted before or after the specified dates.

13) The applicant should document the receipt properly.

14) After the application is successfully submitted, forms will be categorized on location basis and option basis.

15) Forms will then be shortlisted based on a random selection criteria with no preference being given to any specific form.

16) The applicant will be invited for a discussion as per the order of selection between 1st April and 15th April 2015, with the allocation of flats / plots being directly linked to the availability of flats / plots in that option, at the specific location.

17) In case the flat / plot offered by Darode Jog after processing the application form is refused by the applicant by 15th April 2015, the interest free amount will be refunded to the applicant on or before 31st May 2015.

18) In case the applicant opts to purchase the given option, the relevant payment schedule will be applicable for the applicant.

19) Apartments will be sold on the basis of carpet area (in sq. meters).

20) The indicative price information sheet is merely an invitation to the offer.

21) Stamp duty, VAT, Service Tax and registration charges will be applicable.

22) The sanctioning of home loan will be decided by the concerned financial institutions, adhering to their standard rules and procedure.

23) Under the Toss Ka Boss contest, branded furniture vouchers of Rs. 1 Lakh will be gifted randomly to 1 applicant in every 50, without giving any preference to any specific application.  The vouchers will be governed by the terms of conditions of the concerned brand.

24) The interest rate of 8 percent on pre-EMI of home loan will be applicable for first 2 years only. After that, the rate as mentioned in the loan document will be applicable.

25) All the actions for EPL offer will come under Pune jurisdiction only.

The Fake Deal:

Mr. Parag Borawake, General Manager - Marketing, Darode Jog Properties

"Just by paying 50,000 rupees the old man - saved Rs. 2 to 3 Lakhs!," when the old man with the two ladies left the lounge Parag said.

"How did he save?," I asked.

"Saving is equal to current market rate - the rate offered in this scheme! For example - the current market rate in that location is 3200 - rate offered in this scheme is 2800 = 400 saving! Simple!! You pay 50,000 and save 400 rupees per sq ft - get a discounted rate - in short this is the offer!," said Parag.

How stupid! Both rates - the current market rate & the rate offered in the scheme - are cooked prices. Both are fake rates. Darode Jog's terms & conditions itself accepts that the prices mentioned are indicative. Not genuine. Not authentic. Darode Jog is not committing that these would be the launch rates.  It means that saving is also an assumption. Fake idea.

Not only that! Darode Jog's ad claims that the saving is an appreciation!
An assumed appreciations - based on assumed prices of the property - which doesn't exist!!
It's  a fake deal!

Something like fake price cut offers at Supermarkets!

Why would anybody pay his real 50,000 rupees for the fake saving deal?

Are Pune property buyers so dumb?

I don't think so!

Pune property buyer knows that he is a pay masters and a builder is a service provider.

As a paymaster it's his right to set the terms & demand commitments in black & white.

When he accepts this type of a "offer" - Pune property buyer knows that - he loses his rights & puts his life & money in danger.

Because, Pune property buyers are aware about the risks involved in booking a flat at the launch or at the under construction stage.

After the criminal conspiracy of  violation of environmental clearance was exposed, everyone knows that there are more than 170 illegal projects in Pune -  more than 20,000 property buyers have become victims of the builders.  Some projects are stalled. Some are left incomplete. No project has received completion & occupancy certificate - means at this point of time these are illegal unauthorised constructions.

Result is, now, no property buyer pays a single rupee to the builder without inspecting sanctions, approvals & environmental clearance.  And look at Darode Jog! Darode Jog expects 50,000 rupees from you!

I am sure you will not pay even 5 paise.

Most of the property buyers who have booked  in  Nest Fest, Tag Your Home, India Housing Day - I have heard - are cancelling their bookings - sorry - applications.


Because most of the property buyers have realized that these builders are not in a position to construct and complete the projects.

These offers are just a way to trick the home buyers to give away their home loans.

These builders are trying to bribe the buyers to get their home loans.

All these builders firmly believe that Pune property buyers are dumb. Pune property buyers will risk their lives for a fake deal.

But, you and me know that - Pune property buyers are not dumb.


Please, share your views in the comments.

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2) A Flat against PDC - PDC De Do, Flat Le Lo!

1) Pre-launch Offer of Pride Purple Group's 115 Acre Township near Bavdhan receives good response

Darode Jog Properties Environmental Clearance Proposal Status Report SEAC III -1st March 2015

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Darode Jog Properties' EPL - Exclusive Pre launch Offer Brochure:

Darode Jog Properties' EPL - Exclusive Pre launch Offer Form:

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  1. Very true Ravi... Guys don't make a fool of your self... I am still waiting for my refund from the builder... (Who is supposedly Pune biggest builder) after cancellation of flat... No one picks your call or bother to reply or emails I was promised (orally as usual) I will gety refund in 15 days... Let's c when I will get refund... Get up for your rights punekars... I don't say don't buy but be wise... I regret I started reading Ravi's blogs after booking of flat... But any one planning go cautious...

  2. hanks Ravi. Are you saying all prelaunches are bad?

    Btw I have become a fan of you.

  3. Why only Pune buyers? The whole of India are fools. We accept builder's one sided clauses even if we know it is wrong. the builder charges interest of 18% or even 24% in case of delayed payments but never ,never delivers in time and pays no compensation for that (or offering compensation of Rs. 1000-3000 pm in one case for rent offset! Throwing peanuts to monkeys?). But what does the interest come to when the flat payment is in the region of 40L to 50L (most cases). In some cases a builder has delayed for 10 years !(Mumbai).
    We are culturally programmed for scarcity mindset , need to jostle for everything, what if we don't get it. What if the other people book first and I lose out?
    This is OK for school admissions etc. where it is critical but when applied to under construction property dealings we play into the hands of the builder: we end up financing his business (And we don't know what we are going to end up with!).
    It definitely makes more sense to inspect a ready built flat even if it is second hand, see if we like it , and get immediate possession!
    We need to change our scarcity mindset wherever it is not necessary.

  4. I can only say that first time buyer is going fall in this trap. Builders have made their home work (criminal work) working very hardly, they are the master cheaters in front of normal white collar, straight forward men,

  5. Great post Ravi sir, very informative and eye opener. As you rightly said, we "the flat buyers" should be very careful while booking a flat in pre-launch or in under construction phase as there are many risks involved and once we are in to the agreement there is nothing much one can do.
    A better and somewhat "safe" option is to choose a property which is complete and have obtained all the necessary permissions and certificates. Also what you see you get and pay for.
    Even though it may look like a pricier option initially to buy a ready to move property, but considering the risks of an under construction property (believe me there are so many), it is still a better and safe option.

  6. Ravi Sir, we booked nearly completed flat in October 2014, got Registration to Assignment in December 2014. We were promised possession by Feb 2015 as the flat was ready internally. The REgistration document mentions possession 2nd half quarter of 2015. It's October 2015 and still the external ork is not completed and builder doesnot give us Possession.
    To add to this on measuring we came to know that the carpet area given to us is less 43 Sqft than that mentioned. When told to builder his lawyer says that carpet area is to be measured without plaster thickness and tiling. So we filed a complaint in Legal Meterology Department but there is still no hope. And now the builder harasses us that he will not give us possesion. So despite paying him 95% of amount, staying on Rent past 1 year, we are guilty of questioning and asking the builder. Undri, Pune.

  7. Hi Ravi Sir,

    With reference to Darode Jog Liviano project, which is on halt since almost one year, what should be buyers do to get their money back from the builder. I am in a fix and finding it difficult to manage my monthly expenses due to the Home loan EMI and Rent going together, and no signs of getting possession @Liviano.

    Please provide your guidance.