Wednesday, January 4, 2017

2017 Pune Real Estate Market Predictions - Fight Against Builder Mafia Raaj Continues

Maharashtra RERA Rules prove that 
the Builder Mafia controls the government. 
But Pune flat buyers know the simple way 
to fight against Builder Mafia Raaj. 
Do not book a flat at the launch or 
at the under construction stage of the housing project.
And they are exactly going to do that in 2017!:


2017 Pune Real Estate Market Predictions - Fight Against Builder Mafia Raaj Continues

2016 was the year of Pune property buyers fight against Builder Mafia Raaj.

Assuming that Maharashtra Government will protect it's citizens, Pune flat buyers declared war on Builder Mafia Raaj.

By issuing orders to register FIR against the builder under MOFA - Maharashtra Government only pretended to protect the flat buyers.

But the disappointed Pune flat buyers didn't give up.

Because to protect the flat buyers the Parliament of Republic of India had passed The Real Estate (Regulation and Development) Act, 2016.

Maharashtra Government was supposed to implement the same & establish Real Estate Regulatory Authorities (RERA).

RERA was the last hope for fighting Pune flat buyers.

They postponed their decisions to book a flat in under construction projects.

Let us wait for RERA - was the most popular idea in 2016.

It would be safe to book a flat after the RERA is implemented - majority of the flat buyers believed.

But Maharashtra Government missed the deadline for notifying the RERA Rules.

The RERA Rules of Union Territories gave hope to Pune flat buyers that in 2017 RERA will end the builder Mafia Raaj.

Somehow, on 8th of December 2016, Maharashtra Government published the RERA Rules.

The published Maharashtra RERA Rules were nothing but mockery of Real Estate Regulatory Bill passed by Indian Parliament.

Instead of protecting flat buyers, Maharashtra Government's RERA Rules were giving legal authority to the builders to dominate, victimize & intimidate flat buyers.

Pune flat buyers realized that if Maharastra RERA Rules are approved as published:

1) Builder can easily terminate the flat agreement

2) Complaining against the builder is going to be very expensive

3) Builder's complete track record will not be available for the flat buyers

4) Real estate agents can cheat the flat buyers & get away with crime easily

5) Builder can discriminate against flat buyers

To trick the flat buyers, instead of publishing in Marathi - the official language of Maharashtra - Maharashtra Government published RERA Rules in English - which very few can understand.

Not only that!

Maharashtra Government gave very less time to the citizens - only 15 days - to study & submit suggestions & objections on RERA Rules in English.

And you know what?

To prevent citizens from submitting suggestions & objections on RERA Rules the email address was intentionally misspelled.

Thanks to Mr. Vijay Kumbhar! Maharashtra Government had to publish RERA Rules in Marathi & extend the last date of submission to 31st December 2016.

Realizing that if the published RERA Rules are passed as it is, Builder Mafia Raaj is going to become the State Government of Maharashtra - angry & disappointed flat buyers submitted their suggestions & objections by 31st December 2016.

Though it is loud & clear that Maharashtra Government controlled by Builder Mafia is going to notify nearly the same RERA Rules which offer no protection to the flat buyers - Pune flat buyers, for sure, are not going to give up.

In 2017, Pune flat buyers are going to keep on fighting against Builder Mafia Raaj.

The simple way to fight against Builder Mafia Raaj is not to book a flat at the launch or at the under construction stage of the project.

Because the RERA is all about booking a flat in under construction housing project.

Except a few naive flat buyers, in the last couple of years, the majority of Pune flat buyers are fighting against Builder Mafia Raaj by not booking a flat in under construction projects.

In 2017, my prediction is, wise & assertive flat buyers in Pune are not going to book a flat in under construction project and will continue the fight against Builder Mafia Raaj.

Since the builder's business runs on flat buyers money

- just imagine how many more projects will be delayed, stalled, abandoned in 2017

- just imagine how many more builders will be absconding in 2017

- just imagine how many more builders will become bankrupt in 2017

What will happen to those naive flat buyers who have booked flats in these under construction projects?

What do you think?

Will these flat buyers do nothing till their builder dupes them?

Will these flat buyers cancel their agreements?

What will these flat buyers do in 2017?

In short, fight against Builder Mafia Raaj will not only continue but it will become more brutal in 2017.

Related Story:


1) Pune real estate market research report, trends & forecast 2016

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21 comments:

  1. Very true, don't book the flat in under construction, more than that i would say don't even book the flat in 2017

    Satara pe khatara :-P

    ReplyDelete
    Replies
    1. Thanks for sparing your time to comment, Manohar!
      "Satara pe khatara"
      I like it!

      Delete
  2. Some other major points missing in Maharashtra RERA happen to be -
    * Sanctioned plan need not be uploaded on builders' website.
    * Builder doesn't need not inform existing buyers about changes in layout plans which he might do when construction is on.
    Now if buyer doesn't know what the original plan is, how will he come to know changes happening in it ?

    Also, builder has been given right to do conveyance deed only after last building is completed. This means, if builder deliberately doesn't complete all buildings/flats & keeps one pending, he can hang on to the land ownership for life ! This despite taking money for land from flat buyers.

    Even more weird clause - the carpet can be calculated at the time of possession. What non-sense is this ? This is like you pay for iphone but you have to accept even if you get Oppo !

    And when 70% amount is to be kept in escrow for construction, new clause is introduced whereby builder can withdraw money from escrow account for marketing/advertisement. So, builder floats a advertising firm, inflates the bills and withdraws the money.

    Going one step ahead, even the interest taken on loan can be paid using money from escrow. And this borrowed money need not be from bank but from anyone.
    So Pune builder shows he has taken 50 Cr loan from Ravi & withdraws 70 Cr as 50 Cr principal amount, 20 Cr as interest !
    And if builder abandons project or runs away, buyers will be looking at empty escrow account !!

    And yes Ravi, the email ID of RERA suggestions was deliberately misspelled. So I simply copy pasted it from website.

    Here's is today's news update on yet another crook builder of Pune, Trishul builders.

    Compensate flat buyer, Lok Adalat instructs builder-
    Trishul Builders failed to deliver two flats booked for retirement home of complainant, despite signing an agreement and being paid for half

    Merian then approached the Akhil Bharatiya Grahak Sanrakshan Samiti, which has an office in Sadashiv Peth, to get help to raise the issue with Trishul Builders. The Samiti then sent notices to the latter on September 1, 2016. In turn, the developer replied on September 8, stating that the price of the land is more than that of the consideration that the flat purchasers agreed to pay, and that it is, in fact, the purchaser who has cheated the firm.

    http://punemirror.indiatimes.com/pune/civic/compensate-flat-buyer-lok-adalat-instructs-builder/articleshow/56319352.cms

    So bottom line remains, buy ready for possession flat with all approvals. Even better, rent till prices crash and builders stop acting as hafta vasooli thug of Lashkar-e-CREDAI crime syndicate.

    Road ahead not easy, Infosys CEO Sikka tells employees-

    http://economictimes.indiatimes.com/tech/ites/road-ahead-not-easy-infosys-ceo-sikka-tells-employees/articleshow/56297615.cms

    Need to factor in these news also since IT played major role in Pune real estate.

    ReplyDelete
    Replies
    1. 1) "So bottom line remains, buy ready for possession flat with all approvals. Even better, rent till prices crash and builders stop acting as hafta vasooli thug of Lashkar-e-CREDAI crime syndicate."

      I completely agree with you, TheMonk!

      2) Thanks a lot for the additional inputs on RERA.

      3) Happy New Year! I admire your inputs which add a lot of value to my blog. And I am grateful for it.

      Delete
    2. Some more RERA update -

      Consumer rights group raises 52 objections to real estate act -

      Mumbai Grahak Panchyat (MGP), the consumer rights group, has raised 52 objections to draft rules framed by Maharashtra government under central government's Real Estate (Regulation and Development) Act and criticised them as anti-consumers and builder friendly.

      http://mumbaimirror.indiatimes.com/mumbai/other/Consumer-rights-group-raises-52-objections-to-real-estate-act/articleshow/56347482.cms

      This news is from Pune, where Police file cases against builders but don't act against them. If action is not to be taken, I wonder why Police does all the tamasha of filing the case at first place ?

      26 cases booked against erring builders last year -
      http://timesofindia.indiatimes.com/city/pune/26-cases-booked-against-erring-builders-last-year/articleshow/56362829.cms

      पुण्यातील नामांकित बिल्डरवर ‘महाराष्ट्र ओनरशिप फ्लॅट अॅक्ट’नुसार (मोफा) २६ गुन्हे दाखल होऊनही बिल्डर अद्याप मोकाट -

      http://maharashtratimes.indiatimes.com/maharashtra/pune-news/builders-are-free-cases-against-them/articleshow/56362985.cms

      And now another news of yet another builder - zoom developers who went bankrupt is having his assets being seized by banks. And as usual, the builder is absconding.

      Mumbai debt recovery tribunal sets stage for sale of Zoom Developers’ assets -

      http://economictimes.indiatimes.com/wealth/real-estate/mumbai-drt-sets-stage-for-sale-of-zoom-developers-assets/articleshow/56363613.cms

      So all above news once again show why under-construction flat should not be purchased.

      Ravi,
      Happy New Year 2017 to you & all your readers. Thank you for creating such a wonderful platform to share thoughts and experiences. You are indeed doing a wonderful job of of helping property buyers take a more well informed decision.
      Wish you health, wealth & god bless.

      Delete
  3. It's very simple and clear that home buyer must to buy only ready possession flat.....Last few year experience for under contraction flat purchpurcare worst(even with good market image builder)...New flat buyers it's time only to think to buy ready possession flat...if you trapped in various attractive /discounted offer of under contraction site then .....

    ReplyDelete
  4. Pune builders stoop to new low. First one also shows how Naiknavare builders has gone bankrupt. Check out these 2 news -

    Builder faces flak for skipping PF payments -

    An inspector working at Employees Provident Fund Organisation (EPFO) has slapped a police complaint against Naiknavare Developers Pvt Ltd for not contributing to their employees’ provident fund (PF) as per the law.

    On inquiring with one of the directors, he was told that the company was facing financial problem and hence had not been able to pay up. They also gave this in writing and promised to pay up at the earliest.

    http://punemirror.indiatimes.com/pune/civic/builder-faces-flak-for-skipping-pf-payments/articleshow/56483803.cms

    Kalewadi society residents living in terror of builder -

    Residents of Panchasheel society in Kalewadi claimed they are living in fear after they were allegedly attacked by their builder’s men with sticks. Residents alleged that even police are not responding to their requests to take action against the builder and they have now approached the Pune police commissioner, pleading for a response to their complaint.

    http://punemirror.indiatimes.com/pune/civic/Kalewadi-society-residents-living-in-terror-of-builder/articleshow/56484734.cms

    Btw, any comment on above news from Lashkar-e-CREDAI ?

    ReplyDelete
  5. फ़क्त रेडी पझेशन नव्हे तर सर्व सुविधा आणि कायदेशीर बाबी पूर्ण झाल्या असतिल तरच पुढे जाणे हिताचे आहे. नाहीतर नंतर डोके आपटून घ्यावे लागेल "आपल्या घरात"

    ReplyDelete
  6. Hi Ravi, I was wondering if you have any thoughts about Fusion City(http://www.fusioncity.in/) at Kondhwe Dhawade. Near to Urban Gram II but on the opposite side, towards NDA wall. Rate was very affordable. Plan, amenities and open space looked good as compared to other projects in the area.

    ReplyDelete
  7. Finally, the super junk third class babus & concerned ministers of Housing got a dressing down from Union Govt on dilution of RERA. The Central Govt has made it clear that State Govt has no authority to dilute the central RERA :) This is what was already mentioned earlier.

    Btw, one chap in state Govt informed me that the state Govt is going to save it's face by saying that there were 'printing mistakes' in draft, LoL. One such printing mistake is going to be Rule 20 where disclosures about land, project sanctions by builder was skipped. We all will see lot of printing mistakes in coming weeks !! Typist Lashkar-e-CREDAI, Scum-Ul-MCHI will soon be having sleepless nights.

    Nobody has right to dilute RERA passed by Parliament: Naidu -

    Amid reports of dilution of key provisions of new realty law by some states, Union Minister M Venkaiah Naidu today said it should be implemented in true spirit and nobody has the right to dilute the law passed by Parliament.

    http://www.hindustantimes.com/real-estate/nobody-has-right-to-dilute-rera-passed-by-parliament-naidu/story-f2bk2m1nwb7UeJmtakyugN.html

    Coming down heavily on the states that have diluted the real estate regulatory Act, Union minister M Venkaiah Naidu on Tuesday said states have no power to dilute the provisions and this will have serious implications including public outcry.

    On the ambiguity about ongoing projects, Nandita Chatterjee, secretary, ministry of HUPA, clarified that all the ongoing projects that have not received completion certificates till May 1, 2017 would come under the purview of the real estate Act.

    http://realty.economictimes.indiatimes.com/news/regulatory/states-have-no-power-to-dilute-real-estate-act-may-face-public-outcry-venkaiah-naidu/56626982

    Btw my lawyer friends are fully prepared to drag Maharashtra State Govt to Supreme Court if Central RERA is diluted. Hope Ghatkopar, Mumbai MLA & state minister of housing, Prakash Mehta takes note.

    ReplyDelete
    Replies
    1. Ture, TheMonk. This is somewhat positive news about RERA. Glad to know that your lawyer friends are fully prepared to go to court if Maharashtra Government makes mockery of RERA.

      Delete
  8. Dear all, seeking some solution from you...
    Ive been searching the flat near or in Bavdhan area. It's been a very frustrating journey so far as flat rates are still intact and at a very higher side. Neither builders nor agents and resalers are so reluctant that they are not at all reducing their property price. I am roaming around pune and found only some builders in Wagholi and NIBM anexe and Handewadi near hadapsar are slashing the prices. Builders having hoarding capacity and having properties in developed area like Bavdhan are still very arrogant and flaunting an atitude as if there is still high demand in the market. I am a IT engineer, yet I can't afford the buying a property considering the inflation rates in the future and child's education.
    After a research I found, carpet area has now reduced drastically by manipulating the loading calculation.Especially the size of bedrooms have reduced to mere 10×10. I wonder how much space would remain even after placing the furniture. I wonder for such tiny flats in developed or developing area stupid builders are demanding more than 60+ lakh (on an avg). There would be n number of aspirants of buying a dream home in a good locality, but for all of them it's a still distant dream.

    Need your helpful advice to find a solution...

    Yours faithfully,
    A frustrated aspirant

    ReplyDelete
    Replies
    1. "I am a IT engineer, yet I can't afford the buying a property considering the inflation rates in the future and child's education."

      - Why don't you stay on rent or is it some rule that IT chaps have to buy some flat no matter what ? Really don't know what's there to be frustrated by not buying high priced flats with third class construction & infrastructure ?
      It is better to lead a good quality life by renting & creating good corpus rather than buying something which will make you fall into long debt trap.

      Rented or purchased, the shelter provided by the flat remains the same. I haven't come across any flat where rain comes inside in rented flat & doesn't come once you buy it :P !!
      And if you want to buy, it should be with 100% cash down. If you are taking loan, then you are paying rent to the bank for the rented money.
      And if you buy in some township or crook builder, you won't even own the land.
      So no matter what, you will be a tenant, either of landlord or the bank !

      The landlord may not hike your rent this year -
      Demonetization and the slump in real estate has affected rentals

      http://www.livemint.com/Money/Qveredc1Rod6U08QxSBAuN/The-landlord-may-not-hike-your-rent-this-year.html

      So renting becomes even more lucrative till real estate prices don't crash by atleast 50-60%. Ofcourse, you do have option of becoming bank & builder slave for 15-20-30 years.

      Delete
    2. You're welcome. Don't succumb to buy a flat today. You can certainly buy one after sometime. Better to make more downpayment & buying at much lower price point, thus reducing EMIs & duration.
      Don't want to scare you by below news but this is just to show that whatever financial decision you take, it should be on medium to long term based on investment value.

      Automation takes over, Infosys releases up to 9000 employees -
      http://www.dnaindia.com/money/report-automation-takes-over-infosys-releases-up-to-9000-employees-2294451

      People often look at short term gains without factoring in long term loss associated with such decisions especially buying flat with high amount of home loans.
      And real estate prices are going to fall further. The numbers indicate all towards real estate crash.

      Oberoi Realty's Q3 net profit declines 60%
      Godrej Properties witnessed a 62% drop in its sales.

      http://www.zeebiz.com/companies/news-demonetisation-bites-oberoi-realtys-q3-net-profit-declines-60-11533

      Frustration has kicked in & builders offering big commission to brokers.

      http://realty.economictimes.indiatimes.com/news/industry/with-property-sales-decreasing-builders-wooing-brokers-with-better-incentives/56823412

      Delete
  9. Government rules out any changes to the real estate Act at this stage -
    RERA is to be implemented from 1 May 2017, as proposed in the Act

    Recently, there were some media reports that the Real Estate (Regulation and Development) Act (RERA), 2016 would be amended in some states. For the end users, this could mean that the Act becomes biased towards developers. However, M. Venkaiah Naidu, housing and urban poverty alleviation minister, has said that the Act will be implemented in letter and spirit. But why is this statement important? Let’s take a look.

    In a press note released on 17 January, the ministry clarified several issues and took note of rumours that the Act may be amended by states. It also quoted the minister: “There are some media reports that some states have diluted some provisions of the Act in the Rules notified by them. States don’t have such powers and I hope such reports are not true.

    http://www.livemint.com/Money/SDXWJnnAKLxJaV3UTYiiSL/Government-rules-out-any-changes-to-the-real-estate-Act-at-t.html

    This means all lobbying done by criminal syndicates with state govt goes in the smoke !

    ReplyDelete
  10. Sir, very truly pointed out!

    I will not buy any under construction flat for sure.

    ReplyDelete
  11. Hello Sir,

    I'm from Pune and bought under-construction property in April 16.
    Recently builder calculated service tax from all payment last year. So he is calculating Service tax for March 16 to May 16 @3.625 and for June 16 onwards@4.35
    And payments made after June he is calculating @4.5.

    But watching some online portals I get to know service tax got varied 2 time i.e 3.625% to 3.75%
    I'm calculating service tax as follows
    Service tax =25% of 15%=3.75%

    I’m in little confusion, can you help me on this

    ReplyDelete
  12. I think who are interested in booking flat they should buy land together in group and construct one stand alone building.It will be more economical instead of giving 60 to 70 lakh for just 900 sqft flat

    ReplyDelete