Are these Builders in Trouble..?

Published on Aug 6th, 2014 by Abilash Reddy
How to get the best deal in buying a house Bangalore
A five-year-old fight between a real estate developer and his customers came out in the open on Sunday as the buyers protested outside the project site at Amruthahalli.

Around 150 people who had booked homes at Skyline Beverly Park, a project by city-based Skyline Constructions, alleged that the flats are yet to be handed over to them. “The project was scheduled to be completed in 2009. The builder is yet to complete it despite getting several legal notices,” they charged. They claim to have paid close to 90 per cent of the total due amount.

A lot of customers have taken bank loans without thinking twice about the credibility of the builder. The loan applicants are still paying their EMIs. “We were shocked when last year we received letters asking us to pay around `8 lakh for water and electricity connections. We don’t understand how BWSSB and BESCOM charges can amount to so much. Basic facilities like water and electricity connection as well as lifts are not working,” said Ajay Shroff, a buyer.

Earlier this year, a complaint was filed at the Amrutahalli police station by the buyers against Skyline’s Directors Dhiraj Prabhu and Avinash Prabhu. The case was handed over to CCB, which later transferred it to the ACP of Sampigehalli. No arrests have been made and police said they would question the builders. 

When contacted, HR Manager for Skyline H S Raghava rubbished the claims of the buyers. An email from Dhiraj Prabhu’s office said they have applied for occupancy certificates and are waiting for approval. “More than 50 customers have registered and taken over their flats. You may come along with the customers to our office with a prior appointment and verify the documents for yourself. The completion date of 2009 was given only to a few early customers,” the response said.

The buyers maintain that the building is unfit for habitation. They said the builder is now threatening to cancel the allotments unless the pending amount of 10 per cent, supposed to be settled upon hand over of the flat, is paid through post-dated cheques now.  

On the other hand.... About a dozen high-net-worth individuals including CEOs and top lawyers are planning to send a legal notice to developers Century Real Estate Holdings and Goldman Sachs for delaying their homes in an upcoming Four Seasons hotel-cum-apartment block in Bangalore where apartments are priced at Rs 4-15 crore and buyers include Bollywood actress Deepika Padukone and some co-founders of software firm Infosys.

The apartments were to be delivered by the end of this year, but the upscale CityView project has been stalled since February due to differences between the two owning companies over a potential buyer for stake in the project.

"Goldman Sachs has been trying to exit the project but they have still not identified a third party to take their shares in the project. Courtesy their internal rift, the homebuyers have been left high and dry," said senior Supreme Court advocate Basava Prabhu Patil, who owns an apartment in the project.

Bottomline, It really doesn't matter if its a tier 1 or tier 9 builder for delays or other major issues.