Thursday, December 19, 2013

Pune Property Exhibitions - Mass Manipulation of Home Buyers

Why Does Every Local Newspaper Organize Pune Property Exhibitions?




There were two Pune property exhibitions last weekend. One - Sakal Vastu. Two - Times Property Showcase. Organized by two leading newspapers in Pune. Sakal & The Times of India.

Branding - is the intention behind organizing property exhibitions - claim both the publications.

Creating platform for home buyers to collect information about all housing projects in Pune - is the best way to win the minds of newspaper readers - claim both the publications.

If organizing property exhibitions is basically a branding and a public relations exercise of these newspapers - then - why does every builder pay a couple of lakh rupees to participate?

"Because, it's a win win deal - newspaper gets the credit for helping it's readers and participating builder gets an opportunity to interact with the home buyers!," one builder told me.

"Property exhibition is not for profit - builders contribute only to share the expenses," one of the organizers told me.

"So the property exhibitions are all about sharing information! Am I right?," I said.

"Yes! In this age of information, consumer is the king - and the king takes informed decision - property exhibition makes it possible," said the organizer and the builder.

Property Exhibition is All about Exploitation of Pune Builders:


I called Mr. Satinder Arora of Skyline Expositions. In 1992, Satinder pioneered & popularized property exhibitions in Pune real estate market. At that point of time, I was in Pune real estate advertising.

For Satinder, property exhibition was the most cost effective tool to market property. His focus was not on sharing information but on selling property - conversion - bookings.

Today, Satinder runs www.PuneResaleProperty.Com - One Stop Shop of Resale Properties in Pune.

"What is this, Satinder? Now a days, every alternate weekend - there are property exhibitions in Pune - but you are not organizing any. Why?," I asked him.

"Because now, property exhibitions are not about property," said Satinder.

"Then - about what?," I asked.

"Property exhibitions are about ad revenue! Newspapers way of extracting maximum ad revenue from the builders. Newspapers realized that I was eating their ad revenue. Instead of spending on newspaper advertising - builders were spending on my result oriented property exhibitions - to kill me - the newspapers themselves started organizing the property exhibitions," said Satinder.

"But you were result oriented - your focus was on booking - why did the builders ditch you?," I asked.

"Which builder can say 'NO' to the newspaper? Newspapers afford to advertise and write promotional news stories about their property exhibitions in their own publications. Newspapers can design "Ad Root" - a stall in proportion to the size of an ad in their newspaper. How can I compete with newspapers on these grounds? How can a builder afford 'Not to Participate' in such a heavily publicized newspaper event?," said Satinder.

"But, what about the 'results'?," I asked.

"No 'results'. Only 'Presence'. Only distribution of brochures. No interaction - only 'show off'! In the last real estate boom - builders have earned a lot - easy come - easy go - to the newspapers!," said Satinder.

"But, Satinder, branding & sharing information also matters!," I said.

"Yes! To increase advertising revenue substantially - newspapers have roped in advertising agencies to sell the idea of 'brand building' to the builders - at the same time - these newspapers have also convinced the property buyers that - a builder who spends more on newspaper advertising - has a big stall in the property exhibition - is a big real estate brand!," said Satinder.

"It means that - now - property exhibition is not a cost effective marketing tool, anymore - Satinder, this will kill the small builders - small builders can't afford newspaper advertising - small builders can't afford to participate in property exhibitions - means the small builders can't sell - can not survive - the small builders will be wiped out!," I said.

"That's the plan! Pay the newspapers or vanish!!," said Satinder.

How Politicians, Builders & Newspapers Nexus Manipulates Pune Property Buyers:


Yes! I completely agree with Satinder. Today, real estate marketing has become a con-game - a swindle in which the swindler, after gaining the victim's confidence, robs the victim by cheating.

In this con-game - the newspapers play important role of gaining the confidence of home buyers and of persuading the home buyers to buy worthless properties.

The newspapers play this important role mainly because these newspapers themselves are builders. Directly or indirectly these newspapers have invested in big real estate projects in Pune.

At the same time, these newspapers are politicians too. Small & big, local corporators to union ministers, all types of politicians are the 'owners', 'relatives' or 'friends' of these newspapers.

The politician body takes care of manipulating development rules, regulations & plans.

The builder body works as a foot soldier and runs the shop.

Whereas, a newspaper front pretends to be saintly, wins home buyers' confidence - psychologically manipulates home buyers and makes them easy kill.

All 365 days of the year these newspapers brainwash & manipulate individual Pune home buyer's mind. This daily manipulation is silent and hidden - it works like 'slow poisoning'. It comes out in open only when these newspapers organize property exhibitions.

The newspapers organize property exhibitions for three reasons:
1 - To test how much they have succeeded in manipulating individual property buyer's mind.
2 - To strengthen the individual manipulated mind by 'group therapy'.
3 - The property exhibitions provides an opportunity for the newspapers to manipulate those who are not newspapers' regular readers but are potential property buyers.

If you look at the ads & news stories about property exhibition - you can clearly see that the intention behind manipulations is:
1) Securing supply of interest free funds to the builders.
2) Maximizing profits by justifying irrational property prices.

To achieve the goals of fund flow & exorbitant profits - the newspapers erase - delete - unfavorable ideas - and replace & plant certain favorable - profitable 'ideas' and 'beliefs' in thousands of home buyers' minds - at one go - openly & shamelessly.

1) A "Home" is a dream - newspapers erase the idea that अन्न - वस्त्र - निवारा - रोटी - कपडा - मकान are basic needs of a human being and it's government's duty to fulfill the necessities of it's citizens.

Newspapers see that we do not raise our voice and ask - If the government is unable to fulfill the basic needs of it's citizens, then - what is the point in forming a government and creating a nation?

2) A property buyer is a 'consumer' - Property exhibitions are organized as if they are malls - bazaars - of homes and visitors are shoppers. You are treated as a shopper - as a consumer - as if you are buying a ready-to-move-in homes - as if you are shopping a ready made shirt or shoes in mall.

This is done to make you forget that you are a "Paymaster" and a builder is "Service Provider".

When you forget that you are a "Paymaster" - instead of dictating your terms & conditions - you accept the builder's terms and conditions - which are never in your favor and you become a builder's slave.

3) Market Price of Property - The newspapers use property exhibitions to prove that "Market Price of Property" - the most popular lie in real estate market - is the ultimate truth.

The newspapers also brainwash the property buyers to believe that "Market Price of Property" always keeps on going up - keeps on increasing and never comes down. Only because "Market Price of Property" justifies the irrational property rates and easily maximizes the builder's profits.

Ever increasing "Market Price of Property" generates another false idea - "Property Appreciation" - increasing personal worth - and temptation to earn profits - passive income - by selling the property.

When the home buyers accept these false ideas - Market Price of Property & Property Appreciation - they start believing that the builders main business is to make them wealthy!

How can you can ask probing questions to someone whose business is to make you rich?

You forget that you are a Paymaster and the builder is a service provider. You are actually placing an order to construct a home for your family. For this service you pay 3.09 per cent service tax & 1 per cent VAT to the state & central government. You stop treating builder as vendor and do not ask for the bifurcation of his asking price. You do not ask the builder what is the land price - what is the construction cost - what is the administration expenses - what are builder's fees for providing construction services.

In the crowd of property exhibition - you simply forget - who you are and what are your rights. Your rational mind stops working. You become victime of mass manipulation by the newspapers.

However, some visitor manages to survive the mass manipulation and asks - why doesn't government do something to make housing affordable for a common man?

Poor fellow, doesn't know that 'politicians - builders - newspaper owners nexus' is the government!





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3) Times Private Treaties Invests In Prestige and Pharande Promoters

4) Times Private Treaties Sets Sight On Real Estate Sector

Times Private Treaties started the year with a number of deals in various sectors, investing in Real Estate Companies like Kanakia Spaces and Kumar Properties.

5) Bennett Coleman picks stake in Lavasa Corporation

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Monday, September 9, 2013

What happens if a bank takes over a housing project?

The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.

Gera's Trinity Towers Kharadi - Enjoy ADF Advantage of Minimum Rs. 3.3 Lakh Booking Amount
Gera's Trinity Towers Kharadi - Enjoy ADF Advantage of Minimum Rs. 3.3 Lakh Booking Amount

Last month, the State Bank of India took over a housing project in Kolkata because the developer had defaulted on repayment of dues to the tune of Rs 176 crore. The Teen Kanya project was promoted by the Bengal Shelter Housing Development, a joint venture in which the state housing board has 49% stake. Therefore, its repossession by the SBI has come as a shock for the 400-odd families that have invested in the project.


Most of the buyers had put money in the project because the state housing board was involved. The project is only half complete and the investors are now contemplating legal action to safeguard their investments.

The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.

What are the options available to a buyer if a lender repossesses a property due to default in payment? Legal experts and housing professionals contend that the lender does have first right over the project. Let us look at the issues involved. Read More

Related Stories:


1) Do not sell homes to those people who can't afford to buy

2) Aditya Vilas Javdekar Invites You to Rob a Bank

3) Mr. Builder, Show Me Your Money!

4) Pay Rs. 3.82 Lakhs to Book a Flat & Get Gold Worth Rs. 1.5 Lakh

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Saturday, May 11, 2013

How to Recover Money Lost in Proposed N A Plots

Ponzi Schemes in Pune:




The other day I attended a meeting of investors duped by Nitin Rajaram Narke of Blue Chip Corporation / Investment. Frustrated investors had invited Mr. Vijay Sagar, Ms. Seema Bhakare & Ms. Veena Dixit of Grahak Margadarshan Kendra - Consumer Guidance Center - of Akhil Bhartiya Grahak Panchayat Pune to guide them to recover money lost in the ponzi scheme.

Pretending that he earns huge profits in the share market, Nitin Narke lured thousands of naive investors in Pune. He promised them to give 10 per cent returns per month - in cash - if they invest in the share market through him. Tempted to earn easy money every month, thousands of investors gave thousands of crores to Narke. Only against the security of a postdated cheque.

For the first few months, Narke went on giving 10 per cent returns. Those who received cash, brought in their friends, relatives, colleagues, and coworkers. However, suddenly Narke stopped giving monthly returns. Investors got upset. They deposited his security cheques in their banks. Narke's cheques bounced. Investors panicked. Ransacked his office. Lodged police complaint. Police caught him at his office in Magarpatta. But Narke got out on bail. Started running his business as if nothing has happened.

Helpless investors joined hands. Started meeting regularly. Went on trying all possible ways to recover their money. Even approached SEBI. Which refused to interfere in the matter conducted under the name of a different company. Investors had lost face. Some lost faith and committed suicide. Others went on living. Avoiding to face their near & dear ones. Looking at Nitin Narke moving around in his fancy SUV.

"How can someone believe in 10 per cent per month returns?," I asked Mr. Vijay Sagar.

"Same way you believe in Proposed N A Plots," said Mr. Vijay Sagar.

"Isn't it financially & practically impossible to get such high returns in share market?," I asked.

"Still you invest in property - as if the builder's real business is to make you rich," said Mr. Sagar.

"But isn't it risky to give your hard earned money against the postdated cheque?," I asked.

"Are the clauses in the flat agreement to protect you or the builder?," said Sagar and added that,"At this point of time, there is no point in talking about ponzi scheme. Let us focus on how to recover money lost in ponzi scheme"

The first step is, to collect data of all duped investors. Then let us form a task force to lead the campaign. Mr. Sagar went on explaining the strategy to recover money. And I realized why Vijay Sagar invited me for this meeting. Scams may be different but the ways to recover your lost money are the same. Today it is about investing in share market. Tomorrow it will be about investing in proposed N A Plot!



Yesterday, I read Mr. Vijay Kumbhar's blog on chit fund scams. Mr. Kumbhar has held government agencies responsible for these ponzi schemes. When I talked to Mr. Kumbhar about 'Proposed N A Plots Schemes in & around Pune', he said that the government agencies' negligence becomes protection for those who sell agriculture land to investors. Naive investors don't realize that it's a "scam". Not an investment offer!

"Government agencies negligence or reluctance to stop - is taken as recognition - and investors believe that at some point of time this agricultural land will be converted to Non Agriculture - N A. Not only that - the land developers announce that - soon - the government is going to change the present agriculture zone into residential zone - still the government agencies keep mum! Now, tell me, who is responsible for these Proposed N A Plots Scams?," said Mr. Kumbhar.

"OK. Let us assume that from tomorrow government agencies stop ignoring Proposed N A Plots Schemes. Then what will happen?," I asked.

"The court will cancel all 'documents' of Proposed N A Plots Schemes - because -
1 - In Maharashtra, only a farmer can buy agriculture land.
2 - You can not divide agriculture land into small portions - pieces - into 1,000 - 2,000 - 3,000 sq.ft. plots!," said Mr. Kumbhar.

"And - as predicted by the developer - let us assume - down the line - the zone becomes residential and land gets N A Order - then what will happen?," I asked.

"Then 2 things can happen.
1 - the original land owner will bring stay order on the scheme from the court - alleging that the developer has committed some fraud - the documents were forged or something like that - it happens all the time - we read these news items every day.
2 - at gun point - the developer will force all investors to surrender their plots - of course, against non negotiable - fixed compensation - to some builder - that's how the land was procured for the schemes in Wakad, Baner & Balewadi - we all know!," said Mr. Kumbhar.

"It means that - from today itself - the investors should start considering - how to recover money lost in proposed N A Plots schemes!," I said.

What say you?
Are you going to wait till you are officially duped or
trying to get your money back today?
Please, share your plan in the comments.

Whatever may be your decision, please, save this contact information now -

Grahak Margadarshan Kendra
(Free Consumer Guidance Center)
Akhil Bhartiya Grahak Panchayat Pune


Vedshastrotejak Sabha,
opposite Hotel Kalpana and Hotel Vishwa,
near Sarasbaug, Pune 411 030.

Monday & Wednesday
1730 to 1930

Advisers:

Vilas Lele - 9823132172

Seema Bhakre - 9860368123

Vijay Sagar - 9422502315

Thaksen Pore - 9850525276

Veena Dixit - 9819660991

Srikant Joshi - 9850059020


View Grahak Margadarshan Kendra (Free Consumer Guidance Center) Akhil Bhartiya Grahak Panchayat Pune in a larger map

Related Stories:


1) Actor and Son of BJP Leader Carried Largest Land Scam of India

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Sunday, February 17, 2013

What is Possession Letter, Occupation Certificate and Completion Certificate?

Which Are Required for IT Exemption?


Mr. Rahul Gandhi purchased a ready possession flat from a builder at Kharadi Pune.
After receiving the entire payment, in January, the builder gave possession of the flat to Rahul.
But, at the time of handing over the flat, builder did not give "possession letter" to Rahul.
Rahul & Priyanka also didn't mind and shifted to their new flat.

As promised, the builder gave possession letter of his flat to Rahul in the next month - February.
To get Income Tax benefit, Rahul submitted the builder's possession letter to accounts department of his company.
Looking at the builder's possession letter, the accounts department asked Rahul, "Where is the Completion & Occupation Certificate?"
Shocked Rahul asked, "What is Completion & Occupation Certificate? My builder only gave me - this possession letter!"
"Only possession letter is not enough. To get income tax benefit - you must submit - Completion & Occupation Certificate too," returning the papers accountant said.

Disappointed & frustrated Rahul went back to his office and started asking his colleagues, "What is Possession Letter, Occupancy Certificate, Completion Certificate? Are all these required for IT?"
If you know the answer, please, help Rahul.
Share your knowledge & experiences in the comments!

Related Stories:


1) Possession Letter

2) Baap ka maal

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Wednesday, February 6, 2013

Pre-launch offers are illegal

Pre-launch offer is bluffing & cheating:


Several developers are coming out with pre-launch offers through advertisements and special invitations. However, according to experts this is completely illegal as developers are selling apartments even before the grant of the licence to develop the property.

"It (pre-launch offers) is a big zero. Pre-launch offers are 100% illegal. Unless you pass the plan (for the building) you cannot allocate flat or apartment number to a buyer. And several developers are found doing the same,” said advocate Vinod Sampat. Read More

Related Story:


1) Baap ka maal