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


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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  1. looking at the current scenario and after talking to a few builders it is more than evident that, a "generation" has gone crazy for making quick and big money.
    law of nature will take it's own course and bring this "generation" to the fundamentals....
    anything that grows like a mushroom also dies like one.

  2. Thanks Ravi for the article and sharing information about these so called proposed N.A. plots.

  3. I had been searching for plot long since.. This is best guidance .. Thanks a lot

  4. Thanks for the info.I have been following your blogs since long.It is clearly visible and understood that in Pune real-estate is a business with all benefits and profits to builders with home-buyer at mercy of builders.In such scenario,what do genuine home-buyers do? what should be their criteria in selecting projects?Who are the reputed builders in Pune? Your articles do give us the clear picture but not the possible solution(or may be I missed that) to overcome these problems because at the end,a middle-class person who wants to settle in Pune,needs a home and then again he need to go to these builders only to be played by them :(

    1. Dear Puneet,
      Solution is stop searching for the good builder.
      Become a good buyer.

      See that the project has all sanctions, approvals.
      The terms of transactions are safe for both.
      Form a group, be alert & assertive buyers.

    2. @Ravi
      "stop searching for the good builder."

      WONDERFUL QUOTE...! Its very much important in today's time.

  5. Thanks Ravi for such a good article....This will open eyes of many who are looking to invest and who already duped.....Beauty of the article is it clearly puts facts on table with example of Wakad, Baner, Balewadi and supports from Grahak Margadarshan Kendra to get out of it...

  6. Really an eye opening article... Thanks Ravi for yet another pearl of wisdom.

  7. Sir..ambegaon-narhe bhagat khup pramanat extra 1-2 floors unauthorized construction kele aahet..tyache future madhe kay honar aahe???

  8. As I read your artices very nice to gain some benificial topics on Investment. Get offer if your desire to invest in Bhiwadi located in Rajasthan.

  9. This post is really helpful for those who are interested to invest in property pune Thanks for sharing it.

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  12. It feels good to get what you needed for your Real Estate Investments Australia. Gathering up what you needed is important to ensure that you will not get into trouble with this business. Information should be gained to ensure that your business will continue to grow and be established well.

  13. Raviji, Please can you throw some light on what are the sizes of agrilands that are legitimate to buy? or if you could give me a reference, I'd read it up. Thanks a lot!

    1. Hi, Just thought to add few cents here,,,

      1. Firstly, agri land dealing happens only between farmers, a non-farmer can have some kind of mutual agreement like "power of atorney" BUT the original property documents still lie under the name of Original owner, Farmer. This gives him complete authority to resale it to any third party, for which you may not have any claim.
      2 reasons for claim issues... u do not have your name onto 7/12 extract, secondly your purchase is illegal, you were not authorized to purchase it.
      2. The minimum deal of agri plot is 11,000 sq feet. these so called proposed NA plot sellers give you 1500 sft, 2000, 4000, sft plots. BUT at actuals,, the document that gets prepared is like 4-5 people per 11,000 sft of minimum plot area.
      Even if you get a genuine deal and want to en-cash in future, the problem is "you need approval from all the 4-5 members who are listed under the 7/12 extracts" Else the option is to return land to the original developer at his defined price, or else follow the out of way of "power of attorney" which again creates loop. If the new purchaser is intelligent enough, he wont do the deal, and finally you have no choice to sell the land to the Original developer. And if you hear them clear, they do mention of buy back of land.... buddy what for ???

      Hope this helps to many people.

  14. Ravi, what are your views about

    Does it fall in the same category as described above? Please advise.

    1. Key Kora kagaz,,,
      Just ask the management about individual 7/12 extracts and see the response. Additionally, if you want to keep this plot for your personal use, the legal FSI is just 4 % of your available plot area. so for a mere 400 sft built-up bungalow / row house,,, you need to have a 10,000 sft of land.
      additionally you can refer my response for one of above post.