Raheja Developers: Did Black Money Lead To Shoddy & Incomplete Projects?

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PLEASE CONSIDER REMOVING MR NAVIN RAHEJA, RAHEJA DEVELOPERS, FROM THE CHAIRMANSHIP OF NAREDCO

Raheja Developers were recently caught in a black money sting operation of Cobrapost. The apex body CBDT has asked all tax authorities to submit a compliance report on Rahejas and the other builders caught in the sting. Mr Navin Raheja & Raheja Developers were in tax trouble in 2010 also, when tax evasion worth Rs 80 crore was unearthed after raids on 15 premises of Rahejas in Delhi and Gurgaon, including Mr Raheja’s residential property in Sainik Farms.
This black money angle may explain why builders like Rahejas cannot complete their projects even 7 years after launching them, and the “product” “offered for possession” is so shoddy that 43 buyers of Raheja Atharva have already sued them in National Consumer Commission. Another 15+ are expected to file their cases soon. One buyer in Navodaya has filed a case against Raheja in National Consumer Commission, and also filed a police complaint against Rahejas with hope that it will result in a police FIR. Similarly, over 70 buyers in Raheja Vedaanta are planning to file lawsuits against Raheja Developers like the Atharva buyers, and will send a legal notice before Dec 15, 2014 to Rahejas regarding the same.
Black money could be a root cause for all these problems that Rahejas have dumped on all the buyers who trusted them. Imagine that a company has calculated the profitable selling price to be Rs 7000 per square feet for selling its project. As long as the company takes all the money in cheque or white money, it will go into the accounts of the company. Now if the company sells the same in black money 50-50, it means that the company books will only show receipts of Rs 3500 per square feet, while another Rs 70 lakhs will be in cash (assuming a 2000 sq.ft apartment) and off the company books. What happens to this Rs 70 lakhs in cash is what causes projects to be late, and their quality poor. 
There is no accounting for this Rs 70 lakhs (per apartment or plot) of black money, and it is definitely not stored in the developer offices ! Some may be kept for the company to use in paying bribes, if needed, but chances are that it is used to buy more land-banks for future projects. And much of it may go into the personal pockets of top directors. How would the company then have enough funds for its projects when huge amounts of money have been siphoned off? 
If the company does not have sufficient funds it then tries to extort more money from the existing customers if new customers cannot be found. Some of the steps include adhoc charges, extremely high maintenance charges, denial of delay compensation on flimsy grounds, threats of charging escalation (to the tune of approx Rs 400 psf in Vedaanta!), not making the club, commerical areas, common areas, and not completing the individual apartments till the customer makes life impossible for them. All this may be due to the money crunch in the company as money has been siphoned off by keeping it off the company books. While the individual employees of the company live life in maharaja style – the  company itself suffers. The buyers suffer as the money paid by them has not been used to building their property, but diverted for miscellaneous activities.
Whether this was happening at Raheja Developers will only be known after a detailed investigation. 
You can see the full transcript of the Raheja Sting Operation here http://cobrapost.com/index.php/news-detail?nid=7299&cid=23 You can see details about the 2010 tax evasion here http://timesofindia.indiatimes.com/city/chandigarh/Tax-evasion-worth-Rs-80cr-unearthed/articleshow/5586071.cms The Central Board of Direct taxes has asked its Income-Tax investigation cells to submit their report on Raheja & other developers by Dec 15, 2014. http://indianexpress.com/article/business/business-others/cbdt-orders-probe-against-select-real-estate-firms/ These may provide insight into why Raheja Developers have failed the people who trusted them, including their buyers.
With warm regards, 
Sanjay

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19 comments
ranisantosh77
ranisantosh77

let the page itself display all the conversation instead of you hiding yours from me and mine from the rest....



ranisantosh77
ranisantosh77

there is no need to hide my comments Sanjay...it would be much better if all the comments and conversation between us is visible to public. let them decide and understand. I am not at all afraid of replying to all your doubts. I might take some time because i have plenty of other responsibilities unlike you only researching on us.


request you to let all the comments visible to everyone! Grow up!!

regards

Dimple Bhardwaj

GM, Copr Communication

qbtpl1
qbtpl1 moderator

@ranisantosh77@qbtpl1


Response by Raheja Developers - Dimple Bhardwaj - Raheja Spokesperson


Dear Sanjay you may keep shouting about your own imagination and create fuss about the whole thing. that’s your choice. I have replied on all your posts and will keep giving clarity on the whole issue generated purely out of your sullied intentions. You were blacklisted way back. you have been trying to extort money by doing all this. I have a suggestion for you, if you appreciate, kindly concentrate on your business and earn a living without using such tactics.


Please be informed that the structure of the building had
been completed within the pre-determined time frame but the possession could
not be handed over to you due to lack of availability of infrastructure in the
area. We had also informed vide our mail sent to all Vedanta and Atharva
customers that the necessary infrastructure like 24 meter road connectivity,
water and sewerage which was to be developed by HUDA has not done despite
follow up by all developers in the vicinity. we also took consent from our
customers if they would like to take possession without the same, on which
majority of them said NO, they do not want to take possession.

all the facilities at the projects offered possession are all most complete. people have already started shifting.


on the issue of court cases, I would like to inform you all
that there are broadly two points on which they have filed their cases. one is
infrastructure which of course is beyond our control despite having deposited
full EDC and IDC charges and the second issue is compensation.


Regarding the penalty, as per clause 4.2 of the (Agreement
To Sell) ATS the possession of the apartment will be given  within 36
months from the date of execution of the BBA and after providing of the
necessary infrastructure in the sector by the Government failing which the
seller shall be liable to pay compensation @ Rs. 7/- sq. ft. of the super area
per month for the entire period of delay and the adjustment of compensation
will be done at the time of conveying the apartment. Hence, 36 months was
subject to provision of infrastructure by HUDA/ Government in
Sector. 


 Also please refer to clause no 4.3 of the ATS:

“……..The said project falls within the new Master Plan of
Gurgaon and the site of the project may not have the infrastructure in place as
on the date of booking or at the time of handing over of possession as the same
is to be provided / developed by the government/nominated government agency.
Since this is beyond the control of company, therefore, the allotte(s) shall
not claim any compensation for delay/ non-provision of infrastructure facilities
and /or consequently delay in handing over the possession of the apartment(s)
in the project”


Hence, delivery of apartment is as per our commitment and delay
if any is due to non completion of infrastructure work in Sector by HUDA. 


However, we will also like to draw your kind attention to
clause no. 3.8 of ATS regarding escalation of prices. Please note that as per
CPWD published cost index for Construction, the escalation works out to Rs.
395/- per sq ft.(after absorption of 10% escalation in price) which so far has
not been claimed by the company from customers.


on black money issue, It is quite evident from the video where
Kartik Ramachandran is repeatedly saying that as an organization we do not
entertain or indulge into such practices at all. for records, please be
informed that he left the organization one and a half years ago and went
back to his home town in Dubai. stop being judgemental and let authorities decide upon please.


Regards
Dimple Bhardwaj
GM Copr Communication

qbtpl1
qbtpl1 moderator

@ranisantosh77


Ms. Bhardwaj, we await your words of wisdom, and would request you to repost anything that you feel has been removed. For the record though, nothing has been removed from our sites. And you will appreciate the irony that you once had filed cyber-crime cases against us to get comments posted on our site removed, and today you are complaining about comments being removed.


And in your response why are you blaming HUDA for lack of performance on your part. You say "structure of the building had been completed within the pre-determined time frame" which highlights the problem of your lop-sided construction linked payment plan. You took 35% of the payment without even breaking the ground. Then while making the structure you took almost 90% of the payments from the buyer, while hardly spending 40% of the money taken in on building the structure. 


After the structure was made, you had 90% of the buyers money and yet had spent only 40% on the project. Now instead of spending the remaining money taken from the buyers on completing and finishing the project, you decided to delay the project and enjoy this  balance money for your other purposes as an interest free loan, by raising the bogey of  HUDA not doing the work. When you were raising demand after demand from the buyers did you not think about the infrastructure around? And now that you are "offering possession" in Atharva and Vedaanta, has the infrastructure changed much compared to 3 years ago? 


The HUDA excuse that you are giving will not stand in peoples court and hopefully not in consumer/civil/criminal courts, and HUDA never promised anything to anyone in any timeline. So your excuse that HUDA has not delivered is imaginary, as they were never to deliver anything for you. And the Agreement to Sell is between you and the buyer, and HUDA is not even party to it. 


And you trying to avoid paying delay compensation by blaming HUDA for imaginary reasons is sad, and criminal. And on top of that you want to charge escalation because YOU delayed the project. The buyers paid you 90% many years ago ....


And I do accept that your confidence about black money investigation by authorities may not be very successful. That is the problem with black money, say authorities. Paise aapke ghar to pada nahi hai, to chhapa kaha maren? Aur books to sari cooked hain. But, let us wait and what the authorities are able to do.




ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77 



I would like to inform you once again that the structure of the building had been completed within the pre-determined time frame but the possession could not be handed over due to lack of availability of infrastructure in the area. We had also informed vide our mail in September 2011 sent to all Vedanta customers that the necessary infrastructure like 24 meter road connectivity, water and sewerage which was to be developed by HUDA has not done despite follow up by all developers in the vicinity. We also took consent from our customers if they would like to take possession without the same, on which majority of them said NO, they do not want to take possession. Similar mails were send to customers of Atharva and other projects.


Hence, delivery is of apartment is as per our commitment and delay if any is due to non completion of infrastructure work in Sector by HUDA. 


Regards.

Dimple Bhardwaj

GM- Corp Communication

qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1



Dimple of Raheja wrote:  "We also took consent from our customers if they would like to take possession without the same, on which majority of them said NO, they do not want to take possession. Similar mails were send to customers of Atharva and other projects."


Ms. Dimple Bhardwaj, If you are taking the time to respond, please spend a few minutes of your busy time on actually writing your comments. While we appreciate you attempting to address issues that your customers are raising, you are doing nothing but copying/pasting the same basic lines that you, Divya, Shikha, Jyothi, etc etc etc have been sending to hundreds of clients, tens of times, for the last many years. Please put in some effort and atleast try to add something more to the drivel that you have been repeating again & again & again.


Regarding the point that you took the consent, did you EXPLICITLY ask the clients whether they would also like to be paid the delay compensation or not? Did you clearly tell the customers that their NO for possession would also mean NO to delay compensation (AND YES also to burdens of escalation). If you did not do so EXPLICITLY, your drama of asking for "consent" will be exposed in minutes in the court of law. And we will also see how true your claim of "majority" of customers giving consent is.


Your project is delayed, still incomplete, despite majority of the buyers having paid you 90% in 2011. You must pay delay compensation. And not even try to raise the bogey of escalation. Grow up, and try to make a honest living rather than trying to shaft every which way you can the hapless customers who trusted you and your company Raheja Developers.

ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  of course, I will reply repeatedly when asked repeatedly the same thing from you. And why would you think that the replies would differ if I or Divya or Shikha are replying on the same queries. the concerns you raise are same every time and thus, the replies.


I have repeatedly replied on the penalties reproducing what was communicated to our customers. you may please refer the same here again lest you say one more time that I am repeating the similar communication again.


Regards

Dimple Bhardwaj 

qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1 interesting the way you, and your company, think about how questions should be answered. It reminds me of the Uptown Sinclair quote that "It is difficult to get a man to understand something, when his salary depends on his not understanding it.”


Anyway, let us try something new. Have you returned the IBMS of the residents of Raheja Atlantis. You handed over the maintenance to the Atlantis RWA in April 2013, but have you returned the Rs 1,50,000 IBMS that you collected from each of the over 270 residents there. If you haven't done it, when are you (Raheja Developers) planning to return the money, Approx Rs 4 crore, to where it rightfully belongs ????



ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  well thank you Sanjay for words of appreciation in the first para.


regarding Atlantis, can I ask you something?under what capacity are you asking me this question? you are neither the member of RWA nor a resident of Atlantis and this is something between us and the association. WHY YOU????

qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1


Ms Dimple Bhardwaj, GM, Corp Comm, Raheja Developers


If you think that the first para in my comment carries words of appreciation, then it shows how deep in trouble Raheja Developers are when people like you are managing their Corporate Communications. It also explains why you are unable to give straight answers to simple questions. Please take help of someone proficient in English to understand what is meant by "It is difficult to get a man to understand something, when his salary depends on his not understanding it.”


And yes, regarding Raheja Atlantis I am asking in the capacity of a real estate analyst & broker. People seek my advice about whether they should invest in Raheja Developer projects. Will you be able to complete your projects. What is your track record. Are you in financial or other trouble? if you are not able to pay back the maintenance security of Raheja Atlantis, what does it mean about your ongoing projects in which you are also hold crores in maintenance security. What are the ethics of your company. Can you all be trusted. I have my personal experiences with you, but it is also better to look at the bigger picture when advising potential clients. 


Now, please answer the question. Have you paid the Maintenance Security to Raheja Atlantis Apartments Owners Association.

ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77   its good to know what you do but I am sorry to inform you that since you are an outsider I would not like to share details of something which is strictly between us and the RWA of Atlantis.

qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1


Ms. Dimple Bhardwaj, Corp Comm, Raheja Developers


You think we are "outsiders?" Real estate ki duniya main tumhi-tum ho? Khaaamosh. AAP to hamare karzdaar ho, aisi awaaz main baat karna aapko shoba nahi deta, please. 


We are interested in knowing how many entities there are like the ATLANTIS RWA (RAAOA) who are left with nothing by broken promises and commitments from you and Raheja Developers.  Because your future actions can be determined based on what you have done in past, and what you are doing now ... People need to know what are the chances that you will break/keep the promises that you made last night to your buyers/investors ....


For your reference  https://www.youtube.com/watch?v=JFtgQiA1A8I


ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  who is "WE" here? I am referring only one person who is none other than "YOU" as an outsider.


kindly note that Atlantis was awarded best project by CNBC Awaaz real estate awards and recently An analysis of the survey, conducted by the Indian Market Research Bureau (IMRB) in association with The Times of India had also adjudged Atlantis amongst the top 5 housing societies in Gurgaon. 


Here is the news for your reference:


The names of the first five have already been announced — Aralias, Hamilton Court, The World Spa, Gurgaon One and Raheja Atlantis. This is how the rest stack up. At No. 6 is The Laburnum Complex, followed by Vatika City, Wellington Estate, DLF Park Place, Jal Vayu Towers, The Close North, Belvedere Towers, Ridgewood Estate, Orchid Petals and Sispal Vihar AWHO Society.

The condominiums were judged on parameters that included maintenance charges, RWA performance, power back-up, construction quality, satisfaction with maintenance, safety of children, satisfaction with facilities, frequency of government events organized within the complex, festival events, the quality of gymnasiums, swimming pools and common and play areas.

Each aspect was rated on an individual scale before a final 'overall satisfaction index' was drawn up, taking into account both tangible components like infrastructure and intangible ones like safety and neighbourly interactions. While the top five did well in almost all indices, the others too had their moments in the sun.



http://timesofindia.indiatimes.com/city/gurgaon/15-condominiums-top-IMRB-survey-for-residential-amenities-in-Gurgaon/articleshow/32380994.cms#


hope this replies all your queries on Atlantis.


qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1 Oh Puhlease !! You believe these awards and surveys ???


What junk, and everybody knows it.


Maybe that is the problem. You cannot recognize the difference between fact and marketing fiction. 


And you want to play this link-link thing. Read the article and comments on Raheja Atlantis here 

http://timesofindia.indiatimes.com/city/gurgaon/Raheja-Atlantis-residents-up-in-arms/articleshow/13003475.cms


And have you forgotten the fire in Atlantis??


https://www.youtube.com/watch?v=Kc6m2-PXLFA

ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  "Because your future actions can be determined based on what you have done in past" I hope you know what I mean in simple straight words.

qbtpl1
qbtpl1 moderator

@ranisantosh77


Ms Dimple Raheja, GM, Corp Communications, Raheja Developers


Here are some photos of the apartment that caught fire in the Raheja Atlantis complex. 

ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  well. I could only expect something like this for times of India from a road side lootera like you. not your fault anyways....I don't expect much out of a person who only knows how to blackmail and extort by posting such things over the net.


on the link thing, please excuse me for being rude...I am sensible enough not to waste my time on useless people like you.


if somebody"s AC catches fire and thus the whole flat, how can you held me responsible for that....o come on!!

ranisantosh77
ranisantosh77

@qbtpl1 @ranisantosh77  it was indeed unfortunate and we regret Mr. Patros loss, if I correctly remember his last name. we did what we could do in our capacity to give some relief to him by way of compensating his entire loss. however, we could not have relieved him of the pain and mental agony that he would have undergone due to that incident.


yes, the sprinklers in his apartment should have worked but if it dint doesn't mean that the systems installed in the complex were faulty. since then there have been regular drills where people are taught how to safeguard themselves during such times of emergencies. the staff were also trained. I pray for well being of Atlantis and its people every time I pass through it. 

qbtpl1
qbtpl1 moderator

@ranisantosh77 @qbtpl1


Ms Dimple Bhardwaj, GM, Corp Comm, Raheja Developers


You say, "if somebody"s AC catches fire and thus the whole flat, how can you held me responsible for that....o come on!!"


You are trying to play down such  a serious issue. It is not funny!! to be so incompetent as a builder to risk the lives of the residents. Here is the truth from the Times of India report on the same http://timesofindia.indiatimes.com/city/delhi/Panic-after-fire-in-Gurgaon-highrise/articleshow/4804699.cms


  1. The fire officials alleged that the building plan did not allow fire tenders and hydraulic platforms to move inside. "We had to break a part of a wall to reach the block where the fire broke out," H C Sihag, fire station officer, Sector 29, said. 
  2. It took six fire tenders two hours to douse the flames. Residents alleged that they had complained to concerned officials that safety measures were not adhered to in the building complex. 
  3. Fire officials added that the fire could have been controlled much before the tenders arrived had the systems installed inside the building been functional. "There are smoke detectors and sprinklers provided in each apartment so that in case of fire, the automatic security system can take over. However, the system failed due to lack of maintenance and the staff were also not trained enough to handle the situation," added Sihag. 

You were lucky to be in Hooda Raj, and in India. In any other country you would have paid a heavy price for playing with the lives of residents due to your short-cuts and incompetence.

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  1. […] involved in converting the company’s white money to black  money and then siphoning it off. http://comments.gurgaonscoop.com/2014/12/11/raheja-developers-did-black-money-lead-to-shoddy-incompl… They have even gone to the extent of providing poor quality construction that endangers the lives […]