Simple Step to avoid duped by Builder in Maharashtra India

Balaji Ingole
Sep 7, 2018 · 4 min read

Failure stories of Property investments and remedies.. Here we go..

Choose Your Real Estate after Good Study only

My one of friend had already invested in a flat in single standalone building of local Builder near Rahatani Pune, Maharashtra.

Builder had done “Agreement to sale” of that flat with my friend in year 2015 and agreed to give his 3rd floor flat possession on June 2017.

What will be status of construction as on date in August 2018?

In Pune, Mumbai, Delhi (India) Almost 60% Projects Got delayed

Any Guess..

Builder can’t even complete RCC slab work of my friends flat i.e 3rd floor RCC. As per technical progress, not even 20% of total work. Irrespective of this, the total amount builder received is 60% of flat cost. My friend is paying full EMIs of his SBI Home loan from 2015. He is also living in rented house.

so total loss of Not getting his flat is EMI paid + Rent Paid + Plus interest on Amount paid to Builder.

Mental stress is in addition

Below some questions bothering me..

Why my friend booked flat in such schemes in first place?

why my friend is not willing to go against Builder in RERA rules?

Why Builder is not even bother to complete the site?

Why Banks are disbursing more loan amount to Builders irrespective of construction status?

Please add your questions below

Why my friend booked flat in such schemes in first place?

My friend looked at Price first. Its 3 to 4 lakhs Cheaper than the next Project. He looked short term gain instead of knowing , in long run He won’t get his flat on time or as per worst fact, he won’t get any flat in near 5 to 7 years period irrespective of his payment done or any RERA rulings.

Solution: Don’t Become Fish for low prices. Check Builders Credibility.

Don’t Become Fish in Net of offers from Builders

Why my friend is not willing to go against Builder in RERA rules?

He is afraid of losing such a cheap deal. He is still thinking that if his agreement get cancelled, he won’t get any new flat in the vicinity at such cheap rate. Difference of amount is mere 4 lakhs rupees in between new flat in next project and booked flat in current project.

He is not understanding that He won’t get any such flat in near future of 5 to 7 years. He also doesn’t understand his total loss. i.e. EMI paid + rent he paying + simple bank FD Interest on total amount given to builder

Note: Actual Interest component in Home loan EMI is greater in first few years of home loan. That means, if he want to cancel flat agreement and close home loan account then amount of loan pending is almost same to total loan taken.

Solution: Cross check track record of Builder while investing in any flat.

How to check Builder track record? Pls click this link.

Check Proven Records of Builders

Why Builder is not even bother to complete the site?

Builder are most canny people. They know how to handle such situations. Builder won’t pick up your calls in first place, then won’t meet in office. Even if he is available in his office, you have to wait for some time outside where you get served with Tea or coffee . Here at this stage your 50 % Anger vanishes in air. When builder meet with customer he will give so many reasons for delay and gives you fresh commitment. Customer believes builder every time. Thinking of not going against builder legally which will take time. and believing that he will keep promises this time and also we waited for this so long time, we can wait further for few months.

Solution: Take immediate action with RERA. Take some hard decisions and accept that it’s your bad decision as soon as possible.

Accept Your Bad Decision

Why Banks are disbursing more loan amount to Builders irrespective of construction status?

banks and builder are 2 side of 1 coin. They are helpful to each other. Builder provide banks more cases for loans and banks provide more disbursements irrespective of construction status.

Solution: After RERA registration, Builder is supposed to have ESCROW account in any private or nationalized bank. Please check with bank, if its escrow account or else. In Escrow account case, the release of fund would be restricted as per RERA regulation in line with development of construction work.

Bank help Builders way out of system..

In Case You have some questions or queries, please ask us separately or write it down here in comment Box.

You can also reach to me via whatsapp +91 8275172987 or mail me balaji.ingole77@gmail.com

We are launching new website for all property customers.

Ask Us..

Inventor, Investor, Real Tech Entrepreneur, Avid Learner, cofounder at www.Level212.in coworks

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