ERA Divine Court construction status and updates, possession, resale prices discussion

[naveenarichwal]

You should state all these points about possession and than legal case when he gives you possession. So best of luck.

[naveenarichwal]

http://realty.economictimes.indiatimes. ... n/47849288
GURGAON: One more FIR was lodged in the Era Adel Landmark multi-crore-rupee fraud case on Friday. The realty firm had allegedly left the project land after taking about Rs 1,000 crore from people in the name of booking flats.

The fresh FIR was lodged by a DLF-II resident, who was allegedly duped by the company of Rs 16 lakh on the same pretext. While a total of 21 FIRs have been registered against the builder in Gurgaon in the past two months, no arrests have been made yet.

The first complaints against the realtor were registered on May 16 by four people who claimed to have been cheated by the company. They alleged that they had booked flats with the firm's project near Daultabad village in March 2012 but the builders fled, leaving the project midway.

After receiving the complaint, investigations by the economic offences wing of the police found the claims to be true. The FIRs were then registered in the Rajendra Park police station against the directors under various sections of the IPC for alleged fraud, cheating, criminal breach of trust and criminal conspiracy.

"The investigation is under way. Cases have been sent to the EOW. We have sent a notice to the builder company to present their side of the case," said Rajesh Kumar, ACP (crime), Gurgaon.

[naveenarichwal]

MUMBAI | NEW DELHI: Rajesh Mehta's cellphone has not stopped ringing in recent days. The Bangalorebased Mehta runs one of India's largest jewellery export companies but the calls have nothing to do with precious metals or their value which has been as volatile as crude oil in recent months. Rather, Mehta has been inundated with enquiries from cash-strapped builders about financing their incomplete projects as banks turn off the spigot and equity markets remain hostile.

Mehta's main business is trade in gems and jewellery. It may not have taken a backseat but he sure is spending more time closeted with builders. In the last few years, Indian builders' desperate search for financing has led them to the unlikeliest of sources including Mehta.

Such private money is coming at exorbitant rates of even 36-40 per cent a year but that has not turned off anybody. "They (builders) are approaching us for loans, but we are being little more selective this time as we want our interest as well as loans serviced regularly," Mehta says.

Since 2004, Indian real estate companies enjoyed a dream run that lasted till about 2008, until financial crisis following collapse of Lehman Brothers. Since then, the property market has not seen similar kind of sales, but prices have not come off.

Abooming stock market, rising demand and easy access to credit and equity meant companies could keep launching projects and raise money from a variety of sources, including the market. Consumers complained about soaring prices but demand was strong especially in expensive pockets of Mumbai and NCR. Funding was not cheap but available and banks were still lending.

All that stopped about a year and a half ago, ironically around the time when the stock market boom began after the Ben Bernanke-inspired 'taper tantrum' ended in September and Narendra Modi assumed charge of the BJP's election campaign as their prime ministerial candidate. Banks were not healthy and their NPAs were rising but the RBI under Raghuram Rajan started becoming stricter forcing banks to provide for NPAs and go after defaulting promoters. Promoters dont have a divine right to continue," Rajan thundered in his first press conference after taking charge putting both banks and promoters on watch.



The real estate cycle was also turning after years of robust or even steady growth. Purchases slackened especially in Mumbai and NCR as a sliding economy and sky high prices put off buyers. Inventory or unsold stock with builders started piling up and as banks reduced funding to manage NPA levels, many builders started facing a crisis-like situation. The stock market boom did not help them forcing builders to go after private sources like Mehta or NBFCs.

"Deficit between cash inflow comprising of collections through new launches and sale of non-core assets, and outflow including debt payment, interest servicing and construction expenditures is high. This deficit has only been widening in the last three years," said Sudip Sural, senior director, CRISIL Ratings. He should know. Nearly two years ago, developers including Hubtown, Century Real Estate, Housing Development & Infrastructure (HDIL), Orbit Corp and Unitech were either downgraded by credit rating agencies or sent possession notices following reports of their defaults on borrowings. Debt in the real estate sector shows not sign of coming down. The top 15 listed realty developers owed Rs 54,567 crore at the end of March this year compared with Rs 50,400 crore in March 2013.

Stock market doesn't love real estate firms anymore. Shares of listed realty companies, especially those with exposure to Mumbai and NCR have underperformed the Sensex and Nifty. Aggressive attempts by players such as DLF to cut debt by selling assets has not improved their standing with investors.

"A substantial interest rate cut is needed to see revival in the current property market scene," says Lalit Kumar Jain, managing director of Pune-based Kumar Urban Development. RBI has cut rates thrice this year and home loan rates have begun reducing a bit. But that is yet to impact the property market. The million dollar question, according to realty companies, is whether more cuts will substantially revive property market in the coming years.

But some experts believe that this is the wrong question to ask. High prices more than interest rates matter for buyers and builders are not doing themselves any favour by holding prices high especially in Mumbai and NCR. A revival in the real estate market would depend to a large extent on revival in economy but builders also need to face upto certain realities such as their desire to hold prices high despite mounting pressure on the bottomline.

There is a strange dichotomy at play. There is mounting pressure on builders. They are highly scared of defaulting as that could shut all financing doors for them but they are not responding by cutting property prices. "Builders fear any reduction in prices will lead to buyers further delaying decisions in anticipation of more correction," says Ambar Maheshwari, CEO of private equity firm Indiabulls Real Estate Fund. "A lot of refinancing taking place today to stay away from defaults."

That has led to a pile-up of unsold stock., close to 853.09 million sq ft, or about 650,000 apartments at the end of March 2015, according to property research firm Liases Foras. The worst hit are NCR and the Mumbai Metropolitan Region.

"If developers reduce property prices, intermediaries, investors or existing customers will be at a loss. Also new and existing unsold inventory will not fetch a good price," says Sural. In many ways this is a catch-22 situation. "Their cash flows will not improve until buyers are back in the market and this will not happen unless there is a meaningful reduction in prices," he adds. Developers, of course, believe price cuts will hurt them as many have bought land at exorbitant rates.

They also believe consumers will not jump at the first cut in prices and will wait for cuts, thereby increasing pressure on builders. So, they are offering discounts and freebies while borrowing from NBFCs, private financiers and private equity funds.

Recently, around 50 developers like Oberoi Realty, Godrej Properties, Tata Housing, Hiranandani Constructions, Dosti Realty, Rustomjee, Brigade Group, Omaxe, Ansal Housing & Construction, Sobha and RMZ offered up to 15 per cent 'savings' in a flash sale on 99acres.com on June 25-28. Some builders are focusing on completing projects which will then unlock cash flows that are locked in.

"We had sold many projects with schemes where a chunk of the payments were due at possession," says RK Arora, managing director of Noida-based builder Supertech. For now, to manage shortfall in projects, the company is raising funds from NBFCs against collaterals. "These are high cost funds which we are using to finish projects. These do lower our margins but the focus is on trying to complete projects," he says.

Ajay Chandra, MD of Gurgaon-based Unitech says the company is not launching projects and phases but rather concentrating on construction and delivery of existing sold projects. "We are using funds from sale of non-core lands and institutional plots in our residential developments to service debt," he says.

Another developer Indiabulls Real Estate that has seen its debt rising to Rs 5,973 crore as on March end as against Rs 2,977 crore a year ago is also working on a plan to reduce its debt cost. A spokesperson for Indiabulls Real Estate says that the rise in the company's debt level in the last one year was on account of its London property acquisition. "We have managed to get this offshore debt at 10 per cent which is lower than our average debt cost of 11.5 per cent. We are planning to lower this interest cost further through a soon to be launched Commercial Mortgage Backed Securities issue that would be at 9.25 per cent-9.5 per cent cost," the spokesperson said.

In a recent report, Fitch Ratings said it expects property developers to deleverage meaningfully by end-2016 as India's investment climate improves. According to Fitch, the process of reducing leverage had stalled in 2014 due to weak sales and slower cash collections on properties that were sold towards the end of 2014 and in early 2015, as developers introduced easy payment schemes to stoke demand.

http://realty.economictimes.indiatimes. ... s/47858784

[binod]

Dear Mr Mehrotra

I request you to read my that post again which you have reffered, with regard to 'They are not going to live there'.

I told only about 4 persons who belonged to CONCOR, not all. I talked to them and as they told me, I conveyed the same here.

In the same post I also supported those who are going to take possession without any registry paper. So where was the question of opposing anyone from taking possession!

It is always ones personal choice how to proceed in this matter and would be happy to see you living there.

Regards

[naveenarichwal]

Arrest warrants issued against 4 directors of ERA-Adel Landmark for Rs 1,000cr fraud

GURGAON: A city court has issued arrest warrants against four directors of a real estate company, after 21 cases of fraud were registered against them. Hem Singh Bharana, Sanjay Chawla, Rakesh Kumar Gupta and Sumit Bharana, directors of ERA-Adel Landmark Private Limited, have been accused of cheating people of Rs 1,000 crore on the pretext of giving them flats in various housing projects.

The town and country planner had approached the police, claiming the builders had flouted licence norms on these projects, which never took off. Investors also claimed that the builders had abandoned the projects midway.

"The court has issued warrants for the four accused to be arrested till August 4," said Rajesh Kumar, ACP (crime), Gurgaon.

On May 16, four FIRs were registered against the builders, after which the economic offence wing initiated a probe. Subsequently, 21 FIRs were registered against the four directors for fraud, cheating, criminal breach of trust and criminal conspiracy. All four directors are absconding.

http://realty.economictimes.indiatimes. ... d/47904961

[goyalmohit31]

Hope soon they will be behind the bars.

[naveenarichwal]

The town and country planner had approached the police, claiming the builders had flouted licence norms on these projects, which never took off. Investors also claimed that the builders had abandoned the projects midway.

[naveenarichwal]

http://indianexpress.com/article/india/ ... -builders/
Parliamentary panel pushes for law to jail errant builders
The Parliamentary Select Committee for the Real Estate (Regulation and Development) Bill 2013 is likely to push for more stringent clauses that may lead to imprisonment of builders if they do not fulfill their obligations to home-buyers.
After holding public consultations across the country, several members of the panel are of the opinion that provisions for prosecution and imprisonment should be added in most cases where builders “fail to discharge their duties and functions”, sources said.
“Financial penalties alone won’t work since private developers will simply factor in the cost of these penalties in their projects and pass it on to home-buyers. This is largely the feedback we have received from housing and consumer groups,” said sources.
The final report of the Select Committee of the Rajya Sabha is still under preparation and will be tabled before the upcoming monsoon session.
In the current version of the bill, punitive action for various offences is mostly restricted to financial penalties. There is a provision for imprisonment of up to three years or a fine extending up to 10 per cent of the project cost or a combination of the two, but only in cases where developers repeatedly fail to register their projects with the regulatory authority or do not comply with orders for registration.
“There are many builders who have to be reined in and the current punitive measures may not work as a sufficient deterrent,” said Rajeev Chandrasekhar, who is part of the 21-member committee of MPs headed by BJP’s Anil Madhav Dave.
“Among the main objectives of the committee is to see how best we can protect the interests of vulnerable consumers from the high-handedness of powerful, unscrupulous builders,” said NCP’s Majeed Memon, another member.
The existing version of the bill provides for setting up state-level housing regulatory authorities and tribunals, and includes all residential and commercial projects over a certain area under its purview.

Some of its key provisions related to the obligation of builders:
* Developers have to submit details of their projects, such as layout plan, apartment size, completion schedule and approvals received, on the regulatory authority’s website and update it on a quarterly basis.
* Any substantial change from the original schedule, specifications or structural design in what is finally delivered to home-buyers is considered as a breach of obligation by the builder.
* Under the existing version of the bill, the regulatory authority can impose a penalty that can go up to only five per cent of the project cost in case of any contravention of norms.

Sources said that in addition to introducing stringent punitive clauses, the panel is also considering strengthening the provision that ensures that money collected by builders for construction is not diverted elsewhere. The 2013 bill had specified that 70 per cent of the amount received from buyers must be kept in a separate account before an April 2015 amendment reduced it to 50 per cent. “States are allowed to further reduce this amount as they deem fit. Members feel that this should not be allowed,” said sources. The Parliamentary panel has held nation-wide consultations with several stakeholders including residents’ welfare associations, consumer groups, property lawyers and activists, private builders, financial institutions, insurance companies and state governments. These meetings were held at Kolkata, Bangalore, Mumbai, Shimla with the last such consultation scheduled to be held in Delhi next week.

[naveenarichwal]

Courtesy rakesh@topraman.com

http://www.sebi.gov.in/sebiweb/home/det ... s-Limited-

SEBI's order against Era Landmark. (attached)

Securities and Exchange Board of India (hereinafter referred to as "SEBI")

received several complaints against M/s. Adel Landmarks Limited (formerly

known as M/s Era Landmarks Limited)

August 4 Post on https://www.facebook.com/groups/331223303613874/

Sebi given direction to era either they have to return money of investor by 14 per or allot unit in the other there project. .....and they are returning money by 7.5 per....that why they are asking now people to take ur money back....

Sebi asks Kalpbut Real Estate to refund Rs 15 crore investor money

In a MAJOR FIRST action by SEBI against Criminal Builders
http://realty.economictimes.indiatimes. ... y/47933300
NEW DELHI: Taking action against illegal investment schemes, capital markets regulator Sebi on Friday ordered Kalpbut Real Estate to refund over Rs 15 crore to investors within three months, which it had illegally raised from them.

Besides barring the firm and its directors from capital markets for four years, Securities and Exchange Board of India (Sebi) also ordered Kalpbut Real Estate to pay 15 per cent interest annually along with the refund amount.

A probe by Sebi found that the company had raised more than Rs 15 crore from over 2,338 investors under 'Collective Investment Scheme' (CIS) related to plots of land, without getting necessary approval.

Accordingly, Sebi asked the company and its directors -- Bhanu Pratap Singh, Krishan Pal Singh, Guddi Devi, Rajendra Singh Thakur, Parvesh Kumar Singh, Natthu Singh, Raksha Pal Singh, Devendra Pal Singh, Rajeshwari Sengar and Pooran Prakash -- to "wind up the existing CIS and refund the money collected" with interest which are due to its investors within a period of three months.

The company would have to submit a repayment and winding up report, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging the repayment.

In case the firm fails to comply with the orders, Sebi would initiate attachment and recovery proceedings, besides registering a civil/criminal case against Kalpbut Real Estate, among others.

In a separate CIS case, Sebi has prohibited Assure Agrowtech from raising fresh money from public with immediate effect.

Besides, it directed the company not to launch any new scheme.

Sebi found that the firm was running CIS without obtaining registration from the regulator.

As per Sebi, Assure Agrowtech garnered nearly Rs 60 crore from 1.3 lakh investors through its schemes 'sale/purchase and development of poultry'. Further, the compay claimed to have repaid an amount of Rs 6.11 crore pertaining to 6,050 people.

Accordingly, Sebi has put several restrictions on the company.

[binod]

I think we do not have much choice left given the circumstances we have.

There is no case in any court for legalisation of the the project at this time. Cases are in consumer court and first plea of that too is possession, after that penalty etc. These cases are not going to affect the builder in ANY WAY as judgements would take around 2 years from now. From these cases I dont think we are going to force the builder to give us early possession, so there is no use of these cases in current scenario in terms of possession of flats. And THESE CONSUMER CASES WILL NOT HAVE ANY ADVERSE EFFECT ON
COMPANY IN SHORT TERM.

So if you file case in consumer court or not it is not going to affect the possession of flat.

Prevailing situation where a lot of criminal cases are filed by different buyers of different projects on Adel is certainly going to affect it someway....but we don't have any control over them and they are right in doing so as they are cheated. And soon some criminal cases are going to be filed by High Rise people from our project making company position worse.

In this precarious situation, I don't think company would be in a position to complete the project and legalise it until and unless Dgtcp legalise it itself and even then, Era may not start construction citing lack of fund....High Rise is more doomed than low rise....

There are few suggestions which we can contemplate and Praveenji you should also discuss this in other groups.

i) We can ask the DGTCP to take over the project and complete it and hand over to us citing High court order and its own orders issued to Bptp.

ii) We can ask Court/DGTCP to hand over the project to BPTP as they are the original License holder and owner of land. They are in sound economic condition and they can build the flat and we will pay remaining installments to them or Govt.

iii) We should form a new Body/RWA with all the stakeholders and ask the Court/DGTCP to hand over the project to us and we will collect fund and construct the remaining structures ourselves by handing over to some contractor under their supervision.

I think last one is done by some people in a particular project.

If this license issue is resolved also, only few will going to get the possession of flats....i.e. whose flat is in very advanced stage, means where only minor work needed as cases of 8 flats whose possession is due without Registry.

Most of others will not see this as fund problem is not going to be solved soon as compensation demanded by Gurgaon and other buyers are enormous. Thats why I told High Rise is more doomed...

But these are just observations taken out from current scenario. It can change any way.

But if we all want flats, then we have to work on my above suggestions.....

Rest you people are intelligent enough to gauge the situation and I need not to elaborate it further.

[navinsabharwal]

Can someone confirm this news?

http://mmb.moneycontrol.com/stock-messa ... ents/80171

The post on MMB says that there have been CBI and IT raids on Era Offices.

Regards / Navin

[naveenarichwal]

From Umesh Prabhakar,General Secretary FAOA,GF.
Friends,
From reliable sources it is confirmed that BHADANAS( ERA DIRECTORS) have been been arrested yesterday by Gurgaon Police and presented before hon'ble Magistrate and Police has been successful in retaining the SIX days POLICE CUSTODY.

Regards

[naveenarichwal]

ADEL CMD ARRESTED , HS BHARANA ARRESTED BUT REMAINING 3 ACCUSED ABSCONDERS , INCLUDING SUMIT BHARANA.

[naveenarichwal]

Realtor in Gurgaon arrested for duping investors

The Gurgaon police have arrested the chairman and managing director (CMD) of a prominent private developer for allegedly duping investors to the tune of Rs 60 crore. Gurgaon Police Commissioner Navdeep Singh Virk said an FIR had been lodged against four people on the complaint of District Town and Country Planning Department (DTCP) following which the district court issued an arrest warrant on July 1.
The arrested person has been identified as Hem Singh Bhadhana, CMD of Era Developers Pvt Ltd. Police said the other three named in the FIR are Sanjay Chawla, Rakesh Gupta and Sumit Bhadana. They are currently on the run. The police commissioner said, "There are a total of 23 criminal cases of cheating registered at Rajendra Park Police Station since 2014 against this company. In all the cases, home buyers have alleged that the company had been avoiding allotting flats booked by them. The company has also changed its name to Adel Landmark Developers."
The company had started a residential project at Sector 103 in 2011 with a completion time of three years. The buyers were stumped when they found out that no construction had ever taken place at the said project site.

http://indiatoday.intoday.in/story/gurg ... 51963.html

[naveenarichwal]

Bharana agreed with Consumer of Ggn to pay 60 crore (alleged fraud) by paying 4 crore per month & additionally interest of 7.5% .Although very low interest as compared to the immense mental ,physical agony to buyers .Additionally they should be paid to compensate for opportunity lost.
Maybe he will have to give that latter on via Consumer court .
Criminal case seems to be the right approach to deal with such situations .