Tag Archives: Delhi NCR real estate news

Paras Buildtech silences homebuyers with brute power

Posted on by Track2Realty
Track2Realty Exclusive

News Point: Paras Buildtech is a case study in how to silence the homebuyers with brute power, intimidating tactics, political connections and connivance with police. Track2Realty goes down deeper to expose the audacity of the builder who is conveniently living in denial about poor construction and pathetic maintenance service.

Unhappy Homebuyers, Consumer activism in real estate, Judicial intervention for homebuyers, Media and real estate, Indian real estate news, Indian realty news, India property news, Track2Realty, Property market of IndiaEver seen a housing society where the residents constantly live with the fear of losing dignity, getting thrashed, basic services denied, being framed in the false criminal cases by the builder, and even threat to life? Welcome to Paras Tierea, Sector 137 Noida Expressway, where the instances of residents getting thrashed by the security guards and builder framing the residents in false criminal cases are a matter of builder’s convenience.

Some of the residents of Paras Tierea were taken aback one fine evening on return to home after the day out in office. The builder, Paras Buildtech, had some special gift for them as court summon against criminal cases that these residents were completely unaware. After all, the residents were being served penalty for the alleged crime that they just wondered as to when was committed.

What has been even worse is the fact that the civilized residents who had no criminal past were alleged to have earlier repeatedly refused to receive the court summon. The scared residents were informed through the Noida Police that they had the audacity to repeatedly defy the police and the judiciary in receiving the court notice. The police had been so much under the influence of the builder’s political clout (brother of builder being Samajwadi Party MP) that they threw legally sanctified rulebook to the dustbin to frame the residents in a case that lacks the basic police investigation.

The shoddy police investigation only reaffirms the builder’s political clout to botch up the police investigation as per his convenience. As a matter of fact, the location of the so-called crime itself has been directionless, as per the FIR (First Information Report) of the police. It has been a result of police investigation from the comforts of office and on the instructions of the builder and his political backing.

If the police charge sheet is to be believed, the unarmed civilized residents had threatened & manhandled the builder’s staff who are always surrounded by scores of security guards. The core team of the builder anyway always has the additional comfort to be surrounded by the musclemen bouncers who deny access to any residents. It was nevertheless alleged that the builder’s facility management staff is constantly at the risk of security & life threat from these residents as and when they discharge their duty in asking for monthly maintenance charges.

Paras Buildtech realities

Civilised residents with no criminal past are treated like hardened criminals by Paras Buildtech

Security guards at Paras Tierea have thrashed the residents time and again

Builder frames residents of Paras Tierea in criminal cases to silence them from protesting

Paras Tierea is not the only project where buyers have legal issues with the builder; most of Paras projects have builder-buyer conflict

It is noteworthy that the builder’s security guards always use the brute power and have thrashed the residents on occasions more than one. But it seems the builder is determined to silence all the protesting voice against poor construction quality and pathetic maintenance ruthlessly, with callous disregard to rue of law and civilized business practices.

Three separate FIRs against a few residents are ridiculous to the extent that one of the complaints is based on the assumption that the protesting residents might resort to criminal intimidation and violence with the staff of the housing society.

The then Facility Manager of this housing society, Paras Tierea, Rakesh Sharma is on record saying that he did not want to file any police complaint or criminal case. However, the brief had come from the top management to implicate the protesting residents and he signed those ‘official’ papers without even reading it.

It is not that Paras Buildtech has issues with the buyers leading to legal cases with only one of the projects, Paras Tierea, due to poor construction and pathetic mismanagement of maintenance. The buyers of other projects of the builder, like Paras Downtown in Mohali or Paras Panorama on Zirakpur are also exploring legal options to resist what they call unjustified demands of the builder. Even the flagship project of Paras Buildtech, Paras Quartier in Gurgaon is also facing legal issues for violation of rules and regulations.

Threatening the residents with security guards and fabricating criminal cases against them are not the only arsenal that the builder uses against the residents. As a matter of fact, the then Facility Manager of the project had been constantly playing residents against each other to make sure the residents fight among themselves. Needless to say, it would ensure that the residents learn to live with the cruel reality of being constantly cheated by the builder despite of paying a hefty amount month after the month for basic facilities, or the lack of it.

After all, it is a matter of convenience for the management of Paras Buildtech to coerce individual residents than allowing them to unite and be answerable to the collective voice of the residents. The idea is to silence, censor and intimidate the residents who question deficiency in service and unethical business practice.

A housing society where the basic services like electricity is disconnected (as against the government norms & various court rulings) on late payment of maintenance charges, it is always the mercy of the builder as to when provide the services and when deny it. The message on part of the builder is loud & clear: you better succumb or else face the repercussions.

Furthermore, the documents and contractual details of the residents of the housing society that should ideally be confidential with the builder and used only when law enforcing agencies need that, are selectively leaked to create confusion and provoke one group of residents against the other.

A journalist with Track2Realty, who had been living over there, was also given life threat by the builder’s Facility Manager when he intervened and questioned the builder’s henchmen on behalf of the struggling residents. When reported to the top management of Paras Buildtech, including the CMD of the company Harindra Nagar, no action was taken.

This high handedness is paying off to the builder as the residents started feeling security threat for self and the family. As a result, many of the protesting voices got silent and learnt to live with the reality of the builder’s bulldoze tactics. Others started looking out for buyers to sell off the property and move out. The leading voices of protest under the banner of Paras Tierea Apartment Owners’ Association were already being implicated into the fabricated criminal cases and hence did not come out in the open to retaliate.

The builder had by then done his job to silence the homebuyers. However, this housing society is today sitting on a time bomb and no one knows till when would the residents live with the cruel reality of the builder. The builder’s bid to silence the homebuyers is nevertheless a case study in itself.

It is not that silencing the homebuyers has benefitted the builder. It has not and it will never as the word has spread across Noida real estate market. It has not only dented the credibility and brand reputation of the builder but has also been catalyst to most of the projects of Paras Buildtech waiting for new buyers.

The case study of Paras Buildtech to silence the buyers is a grim reminder to the sector that consumer confidence is the key to gain ground in the property market. A builder might be rich and powerful to silence the homebuyers with brute power, one would nevertheless win the battle but lose the war. The collective experience of victim buyers spreads like wildfire and that definitely dents the brand, goodwill and overall market share of the builder.

By: Ravi Sinha

 

Hospitality industry hobbled by land costs, taxes, delays: CII

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Hotel Shangri-La New Delhi, Shangri-La Eros, Shangri-La Mumbai, Palazzio Hotels, Mumbai Real estate news, Delhi NCR real estate news, New Delhi hospitality news, Mumbai hospitality real estate, Mumbai hospitality news, india realty news, india real estate news, india property news, track2media, track2realty, ravi sinhaHigh real estate costs, lack of any tax incentive and bureaucratic hurdles are huge problems for the growth of the hospitality industry that is one of the country’s top job earners, a survey has revealed.

“The high costs of real estate and lack of any tax incentives by the government are acting as hurdles for the hospitality sector. These challenges are further accentuated by overall infrastructure deficit in the country,” said a Confederation of Indian Industry (CII)-PricewaterhouseCoopers (PwC) survey.

The survey covered the top of the mind issues that chief executive officers (CEOs) of various companies face in the hospitality business — from managing costs to developing synergies across multi-format, multi-location functions in the business.

At present, a hotel needs almost 80-100 licences before it starts its operations in India. Almost all CEOs interviewed voiced the need for “effective single window clearance” to make the process smooth and avoid the untimely delays.

It said domestic tourism would add to the growth of the hopitality sector in India.

“The growth potential of the hospitality sector in India is well accepted. However, the realisation of sustainable growth depends on expanding infrastructure, managing costs as well as talent better and providing for tax incentivised development,” said Timmy S. Kandhari, leader, Hospitality and Leisure Practice, PwC India.

Commercial property leaping ahead than residential

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Sunil Dahiya, vigneshwara Developers, SOHO, Small Office Home Office, Commonwealth Games Village Vasant Kunj, VDPL, Vigneshwara Developers Private Limited, Delhi NCR real estate news, realty news india, real estate news india, property news india, commercial real estate indiaThe Indian real estate market has matured to the extent that it is seen as the best investment instrument, as a recent survey by ASSOCHAM points out. However, in the absence of any formal investment education there is a general perception that residential property is the best bet for investment. With my exposure to the business of real estate what I find is that commercial property is much more profitable and rewarding than residential one.

I have facts to back my claim. For example, ten years back in Gurgaon, the market rate for residential property was around Rs. 10 lakh and commercial property in the same area was Rs.15 lakh. However, the rates for the same residential property now are Rs. 80 lakh and that of the same commercial property is Rs. 2 crore & 20 lakh. This shows that an investment of Rs 10 lakh in residential property at that point of time has resulted in a deficit gap of Rs. 1 crore and 40 lakh.

Defying the general perception there are figure available that shows why commercial realty provides the kind of returns that residential property could not. Look at the some of the properties located in the heart of Gurgaon. The introductory price for commercial space in these pockets was in the range of Rs. 5000-5500 per Sq. Ft. as against today’s cost of around Rs.60-70 thousand per Sq. Ft. This makes the capital appreciation in 10 years to reach 1000% in Commercial property.  In the same area residential plots were launched at the rate of Rs. 3-5 thousand per Sq. Yd. and now it is 30-40 per Sq. Yd.

This clearly reflects the gap and the reward difference between residential and commercial property. Commercial property is also way ahead of residential in terms of its leasing value. In commercial property the investors can get directly benefitted by leasing or renting the space to a multi national company for establishing their corporate or branch offices. Now if one compares the residential one, definitely the income incurred from leasing out a commercial space would be far greater than the later one.

Commercial properties have two other big pluses. They can deliver higher yields than residential and lessees usually take responsibility for decoration and maintenance. Another advantage is that lessees are usually long term, meaning less hassle searching for new tenants.

Commercial real estate offers many benefits over residential real estate in addition to higher returns on your investment. It also allows for forced appreciation. Residential real estate is typically valued based on other comparable properties that have sold in the area that are similar in features. However, in commercial real estate, the valuation of a property is based on the revenue that the property generates. A small increase in revenue can increase the value of a property significantly. Unfortunately, with residential real estate this isn’t an option as you really can’t force appreciation; your property will be valued in the general range of the market.

The author, Sunil Dahiya, is Managing Director, Vigneshwara Developers Pvt. Ltd.

Shangri-La Hotels and Resorts to launch 1st property in Mumbai

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Hotel Shangri-La New Delhi, Shangri-La Eros, Shangri-La Mumbai, Palazzio Hotels, Mumbai Real estate news, Delhi NCR real estate news, New Delhi hospitality news, Mumbai hospitality real estate, Mumbai hospitality news, india realty news, india real estate news, india property news, track2media, track2realty, ravi sinhaAsia Pacific’s luxury hotel group, Shangri-La Hotels and resorts, is all set to launch its second property in India after Shangri-La Eros in New Delhi, opened in September 2005. The firm has signed an agreement with the Pallazzio Hotel and Leisure Limited to manage Shangri-La, Mumbai, operational in 2011.

The 410 room hotel and 23 Luxury apartments is situated within the residential and corporate hub of Lower Parel, between two main districts of Mumbai i.e. the Central Business District of Nariman Point and Bandra-Kurla Complex.

Greg Dogan, President and CEO of Shangri-La International Hotel Management Limited said that, “We are delighted to work with Pallazzio Hotel and Leisure Limited to introduce Shangri-La’s distinctive hospitality to Mumbai, which we are certain, will position this hotel as a market leader. India offers tremendous potential and the opening of Shangri-La Hotel, Mumbai is a key strategic move in expanding our presence in the subcontinent.”

Another 5 Star Hotel in Mumbai will be having well-equipped rooms with all contemporary facilities, with additional facilities such as, health club, swimming pool, spa, grand ballroom and business centers with conference and meeting room facilities. The top three floors of the hotel include multiple specialty restaurants offering a variety of dining facilities along with bars.

Shishir Shrivastava, Director of Pallazzio Hotel and Leisure Limited and CEO of Phoenix Mills Limited’s hospitality division said, “We are delighted to get this project underway as it marks the beginning of a long and close relationship that we wish to share with Shangri-La. We selected Shangri-La to manage this prestigious property due to its sterling reputation for delivering a premium luxury hospitality experience. It also marks our foray into the hospitality industry, where we plan to extend our presence to operating multiple world-class luxury properties in the coming years. The long-term opportunity in this sector is immense and we are confident of creating best-in-class properties with right partners by our side.”

This new Mumbai Hotel will lead the expectations of its guests, accommodating them with warm and friendly services. Contact Go Heritage India Journeys for booking Five Star Hotels in Mumbai.

JP Morgan invests $30 mn in Parsvnath project

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JP Morgan, Parsvanath Builders, La Tropicana, DElhi NCR real estate news, realty news india, india property news, real estate news, realty news, property news, track2media, track2realty, ravi sinhaJP Morgan has invested $30 million in Parsvnath Developers’ residential project La Tropicana coming up in the Civil Lines area of New Delhi.

The deal includes an additional funding for the real estate group through JP Morgan’s local NBFC in India. According to a source close to the development, part of the funds raised has been used by Parsvnath to provide an exit to Red Fort Capital, which had invested Rs 115 crore in the project in 2009. Red Fort has made a 30% return on its investment in the project, sources in the know of the deal said.

Ernst & Young, which was the advisor to the deal, and JP Morgan did not comment on the deal. Parsvnath neither denied nor admitted the development.

Parsvnath had sold 18% stake in its 16.8-acre high-end residential La Tropicana project to private equity firm Red Fort Capital for 90 crore in 2009 and later in the same year sold another 4% to the fund for Rs 25 crore. The 400-apartment project, which was launched in 2008, has been much delayed and is now expected to be completed by 2013. The developer is still selling apartments in this project at 14,000 per sq ft. The project was launched at Rs 8,000 per sq ft.

Late last year, Parsvnath had sold 24.5% stake for 120 crore to Red Fort Capital in an office project that it is developing on land it received from the Delhi Metro Rail Corporation. The project is being developed on a build-operate-transfer basis. In January this year, Sun-Apollo India Real Estate Fund invested Rs 100 crore for a 49.9% stake in a residential project, Parsvnath Exotica, in Ghaziabad near Delhi.

DLF plots offset to costs blow

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DLF, Gurgaon plots, Gurgaon realty news, Delhi NCR real estate news, KP Singh, Track2Media, Track2Realty, Ravi Sinha, property news india, real estate news india, realty news indiaDLF Ltd, the largest real estate developer in the country, will focus on plotted development in the short term in a bid to weather the blow from rising inflation and input costs.

In a presentation after announcing its results for the quarter and year ended March 31, the company highlighted its shift from projects involving high construction cost and delivering lower realisations, at least till the prices stabilise.

In fact, of the 12 million square feet (msf) it plans to launch this fiscal, as much as 10 msf would comprise plotted developments in Gurgaon, Indore, Chandigarh and Lucknow.

“We will be selling plots to be developed by individuals who will build houses on their own,” a company official said of the move.

Officials said DLF has secured approvals from the authorities concerned for 4 msf of the 10 msf plotted developments proposed. The remaining approvals are expected to come in by July.

DLF reported a net profit of Rs.1,639.61 crore for 2010-11, down 5% year on year, despite sales growing 29% to Rs.9.560 crore. Net profit for the March quarter was down 19% at Rs.344.54 crore.

“Profit after tax in fourth quarter is below our expectation on account of one-time cost reset due to input price inflation (all booked in Q1),” JP Morgan’s Saurabh Kumar said in a report.

The company has made a one-time adjustment for escalation in budget due to inflation to the tune of Rs.475 crore, which has subsequently dented the bottomline.