Wednesday, February 26, 2014

What can 3,000 flat buyers of Ackruti Hubtown do?

Flat buyers should takeover the project and 
complete it on their own! 
- Suggests Mr. Kedar Vanjape, 
of Kedar Vanjape Developers Pvt. Ltd. (

Delayed Possession of Ackruti Hubtown Countrywoods, Kondhwa, Pune:

32 Brave flat buyers in Ackruti Hubtown Countrywoods Kondhwa have gone to the consumer court against the builder Ackruti Jay Developers. In their prayer to the court they are demanding compensation for delayed possession.

These flat buyers had booked flats in 2009 / 2010. Possession date in their agreement was 2010 / 2011. But, they haven't yet got possession of their flats.

Same is the case of Hubtown Ltd's two other projects. Ackruti Hubtown Greenwoods in Thane. Ackruti Hubtown Gardenia in Mira Road. These two projects are also delayed by 4 - 5 years.

Recently, I visited the site of Ackruti Hubtown Countrywoods Kondhwa. Looking at  the construction status of the project, I realized that the issue is not only about delayed possession. Question is about the completion of the project.

Let us assume that these 32 flat buyers will get the compensation for delayed possession. But is it enough?

How can the flat buyers live comfortably if the builder cannot complete the entire 15 acre project - Ackruti Hubtown Countrywoods?

How can the flat buyers live comfortably if the builder cannot provide all essential services?

How can the flat buyers get all promised amenities if the builder does not complete Ackruti Hubtown Countrywoods?

How can the flat buyers get value for their money if the entire 15 acre township is not complete?

And this is not only about 1,200 flat buyers in Ackruti Hubtown Countrywoods Kondhwa.

This is about 1,000 flat buyers in Ackruti Hubtown Greenwoods in Thane.

This is about 1,000 flat buyers in Ackruti Hubtown Gardenia in Mira Road.

It means this is about nearly 3,000 + flat buyers in 3 delayed projects of Hubtown Ltd.

Are these 3,000 + flat buyers left to the mercy of Hubtown Ltd?

For how many more years these 3,000 + flat buyers will be forced to wait for completion of these 3 projects?

What is the point in waiting when it's clear that Hubtown Ltd is incapable of completing these 3 projects?

Can these 3,000 + Hubtown property buyers do anything to complete their projects?

I asked myself.

Maharashtra Housing (Regulation and Development) Act, 2012

What can the property buyers do when the builder delays the project by a couple of years and may not be able to complete it for a few more months?

Without mentioning Ackruti Hubtown Countrywoods & Hubtown Ltd. BOM:532799 (, I started exploring the solution.

"Yes, something can be done - after Government of Maharashtra starts implementing 'Maharashtra Housing (Regulation and Development) Act, 2012' - establishes Real Estate Regulator & Housing Appellate Tribunal - something can be done," some said.

"Means approximately when?," I asked.

"Recently, President of India has given assent to the act, now - may be - around June 2014 - or by the end of 2014 - State Government - may - start implementing the Act & - may - set up - Housing Regulator & Appellate Tribunal, - may be - then," someone said.

"That's great! How will the Housing Regulator & Appellate Tribunal  help these property buyers?, " I asked.

"If the housing regulator is satisfied that the builder is unable to complete a project, the regulator can let the property buyers come together and appoint contractors and consultants to complete construction of the project," someone said.

"That's great! Would the Housing Regulator & Appellate Tribunal applicable to the projects launched in 2009?," I asked.

"Not sure....not yet clear....depends upon what would be decided when the state government starts implementing the act & sets up the Regulator..," someone said.

"Thanks - not may be - certainly, thanks a lot for the info," I said to Mr. Someone May Be.

Flat Buyers Should Takeover the Delayed Project & Complete It On Their Own - Mr. Kedar Vanjape:

Actually, I had gone to see Mr. Kedar Vanjape to know about his upcoming Nisarg Srishti - 110 Fully Sanctioned N A Bungalow Plots Project near Shirwal on Mumbai Bangalore Highway.

But instead of that I asked him,  "Kedar saheb, what can property buyers do when builder delays project by a couple of years and may not be able to complete it - for a few more months?"

"Flat buyers should takeover the project & complete it on their own!," Mr. Kedar said.

"Is it possible?," I said.

"Yes. It's unique solution. But it's practical solution. It's simple solution," Mr. Kedar said.

"You say as if it's easy!," I said.

"Yes. It's easy. See, in real estate business - constructing & completing project is an easy task - procuring land, designing right kind of a floor plan, getting sanctions & approvals are tough tasks, " Mr. Kedar said.

"Wait...wait let me video record you - what you say will save lives of thousands of families - they must hear you. Can I?," I said.

Mr. Kedar gave his consent and let me video record him. Of course, Mr. Kedar Vanjape didn't know that he was talking to 3,000 flat buyers in 3 Hubtown Ltd projects. Mr. Kedar was just thinking out of box. Here is a summery of what Mr. Kedar Vanjape said in Marathi -

 When you sign a flat agreement - under the 'Force Majeure' - you have given a liberty to a builder to delay possession - in reasonable limits.

But when the delay is beyond reasonable limits - the flat buyers have a right to takeover the project and complete it on their own.

There is no law which prevents them from doing this.

Because of the agreement, the flat buyers are already deemed owners of the project. If the builder has completed the project - he would have formed the Co-op Housing Society and would have done the conveyance - and would have handed over the ownership to the flat buyers.

If a builder is unable to complete the project - who can prevents the flat buyers from taking over the project to complete it?

In fact, the financial institutions & banks who have given home loans - should support the flat buyers to takeover the project & complete it. Completion of the project is in the interest of the banks. By helping flat buyers  get the possession of their flats - actually, banks are helping themselves. So, helping the property buyers is bank's duty.

Only compensation is not enough - consumer court should see that - the flat buyers get the possession of their flats. Because the flat buyer wants a home - so, all flat buyers should collectively request the consumer court to let them takeover the project and complete it on their own and occupy the homes they have paid for.

Why not ask Chief Minister of Maharashtra for help? It's the  responsibility of the state government to help taxpaying citizens. Government has a machinery to assess the seriousness of the situation and  power to take a decision.

This is the right time . We are living in a democratic country. Elections are due. How can government afford to say no to thousands of flat buyers?  The government has to protect the interest of  the citizens. And prove that this government is of the people - by the people - for the people.

Point is -flat owners can takeover the project - banks, consumer courts, government will help them to takeover the project.

Problem is the flat buyers don't come together and demand. Rope in banks, consumer court, government to get builder's consent. And yes, to recover their outstanding bill payments -  the sub-contractors - vendors - agencies will also join the flat buyers!

After takeover, under the supervision of project management consultants - flat buyers can complete the project.

After all what builder does? Builder works as facilitator. He gets the things done.

The same agencies will work for the project management consultant appointed by the flat owners to complete the project..

Instead of paying to the builder - banks will pay to the vendors & subcontractors.

And after possession, banks can start collecting EMI from the flat owners - for the next 20 - 25 - 30 years.

Point is flat buyers should takeover the project and complete it on their own.

It's easy.

It's a unique but practical solution. Flat buyers should go for it.

What say you, flat buyers of Hubtown Ltd.?

Dear 3,000 flat buyers in Ackruti Hubtown Countrywoods Kondhwa, Ackruti Hubtown Greenwoods Thane, & Ackruti Hubtown Gardenia Mira Road, would you like to takeover and complete your projects?

Kedar's just perfect solution will give you your just perfect homes.

What say you? Please, share your views in the comments.

Related Stories:

1) 32 Flat Buyers & Hubtown Countrywoods - David & Goliath

2) What happens if a bank takes over a housing project? 

3) Ivy Estate Wagholi to Start Giving Possession of Flats!

4) Get Compensation for Delayed Possession of Flat in Ivy Estate Wagholi

5) Kolte-Patil Developers - Tell the Truth and Shame the Devil

Feel free to call me:

I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call 919860044110

If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.

Yes, my email id is Feel free to write to me. I reply as soon as i can.

Join me on Google+


1 comment:

  1. dear ravi, its not as simple as it looks & thats why real estate is a tricky thing! HOW THE DEVELOPER WILL ALLOW THESE PEOPLE TO TAKE POSSESSION OF PROJECT AS WELL what about balance payments of the completed work as no doubt there will be many thats why the work is stopped! then the local authorities wont entertain these people as they dont have any legal entity, the finance? what about unsold units who takes care of their construction costs share? so many ifs & buts are there. This is always a danger while booking a flat in making, sadly our govt has no itrest in protecting intrests of so many innocents is a fact! TILL THEN BUILDERS LIKE AKRUTI WILL KEEP REPEATING SUCH SHOW & MAKING NAME OF REAL ESTATE MORE GRAY!