Gurgaon Arbitration Council (GAC) Ombudsman – A Trapdoor or Trap For Buyers?

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Is the “Gurgaon Arbitration Council” a sincere attempt by Administration to provide a trapdoor to the buyers, or is a trap that is being laid by the builder lobby? This is a issue worth examining in detail for it entails issues spanning from legal, to ethical, to financial, to moral, to social, to financial, to constitutional, to division of powers, to kangaroo courts ….

One of the Key Figures from the builders side (over 100 builders are part of REDCO) is Mr Navin Raheja. Even as all the public servants like District Commissioner TL Satyaprakash, DCP Nazneen Bhasin, MCG Commissioner Vikas Gupta, sit on the same table with Mr Navin Raheja and talk about the “good builders,” buyers of Raheja projects are suing the builder in droves.

Gurgaon Arbitration Council with Mr Navin Raheja (as representative of over 100 builders), DCP, MCG Commissioner,and District Commissioner. If you let in the wolves to guard over the sheep, will the sheep be safe?

Gurgaon Arbitration Council with Mr Navin Raheja (as representative of over 100 builders), DCP, MCG Commissioner,and District Commissioner. If you let in the wolves to guard over the sheep, will the sheep be safe?

Three groups (around 40 buyers each) headed by Wg Cdr Alok Verma, Mukesh Sinha, and Nikhil Raheja have already sued Raheja Developers, and a call has gone out for the next batch to sue this builder …. This is in Raheja Atharva. Buyers have also sued Mr Navin Raheja in Raheja Atlantis, Raheja Vedaanta, and Raheja Navodaya. And IT IS THIS MR NAVIN RAHEJA OF RAHEJA DEVELOPERS WHO IS SUPPOSED TO RUN THE DC’s “GURGAON ARBITRATION COUNCIL??”

Call for Buyers To Join The Case Against Navin Raheja And Raheja Developers...

Call for Buyers To Join The Case Against Navin Raheja And Raheja Developers… Mr Navin Raheja is supposed to be man to run the DC’s “Gurgaon Arbitration Council.” !!

It was very interesting to see this in the Press Release about the GAC:

The formation of Gurgaon Arbitration Council (Ombudsman) breaks fresh ground in encouraging Public- Private Partnership by liberating the private sector from the fear of law in cases of dispute referred to the Council by the District Commissioner is providing a platform for rapid resolution of cases at district level.

LIBERATING THE PRIVATE SECTOR FROM THE FEAR OF LAW …. Great. The EXECUTIVE has FAILED. THE LEGISLATURE HAS FAILED. The only thing working in favour of the aggrieved buyers is the JUDICIARY (esp. the National and State Consumer Commissions), and the EXECUTIVE in collusion with the PRIVATE BUILDERS wants to protect themselves from the JUDICIARY … there should be no fear of law for the private sector … This is not very encouraging from the buyers point of view.

And why do the private builders not want to subject themselves to the JUDICIARY?? Maybe it is because the National Consumer Commission has been recently giving orders that level the playing field for the buyers. If the project is delayed, then the Agreement To Sell is no longer binding. The judges have awarded 12% pa compensation rather than the Rs 5 psf pm that the builders offered if buyers want to take delayed possession of the property. And if the buyer is not willing to wait to take possession, the judges have given 18% pa compensation to the buyers. THIS IS WHY THE BUILDERS ARE TRYING TO PREVENT THE BUYERS FROM APPROACHING THE COURTS, because in almost all cases of excessive delay, the builders will have to pay 12% or 18% compensation. There are judgments against Unitech and Parsvnath that set the precedence.

So, instead of guiding buyers to the JUDICIAL option, REDCO and the builder lobby, in collaboration with the Public Servants, are giving a convoluted justification for trying to avoid the legal process, and say in their press release for GAC, (and our comments highlighted.)

The Buyer/ complainant approach the Consumer forum for solving their grievances. This normally involves engagement of a lawyer by the buyer/ complainant. (You could fight your own case in the Consumer Courts, but most people do chose a lawyer. And, with time there is a good breed of lawyers emerging who are knowledgeable about real estate, and are not easily compromised by the builders. That is why the builders now fear them.) The Forum fixes hearings which may get prolonged and several dates are fixed and the case lingers on. (The case lingers on because the Builder and his/her lawyers play games. They conspire to keep on getting new dates. The GAC should advise its members not to play this delaying game.) Sometimes the opposite party does not honor the Forum decision and the case has again to be referred back and forth resulting in further delays. (The opposite party that does not honor the forum is generally the builder. And, the EXECUTIVE is so weak in Gurgaon that many times they are not even able to execute the orders against some of these builders. So, GAC should advise its members to honor the forum orders.) All this involves inconvenience and expense on the part of the aggrieved party. (Since when have the builders and REDCO become responsive to the expenses that they buyers have to bear? Given that in  most cases buyers approach courts because the builders are fleecing them. So, GAC should advise their members to be sensitive to the buyers pockets so that the conflicts and disputes do not arise in the first place.) Therefore, the administration decided that such disputes be resolved expeditiously by the Arbitration Council (different from the procedure under the Arbitration Act). The concept behind the formation of the council was that it will be more like an Ombudsman/ a family court for reconciliation of grievances. (This takes the cake, because this Gurgaon Arbitration Council does not follow the Indian Arbitration and Conciliation Act. It may turn out to be just a Kangaroo court.)

And the cake is taken by Mr. Rohit Malik, President, REDCO, Haryana, who briefed about the mechanism of GAC to the gathering and said “GAC will not only fulfill the Supreme Courts direction of clearing the clogged legal system…” Pray, Mr Malik, please let us when the Supreme Court gave you directions to clear these “clogged” legal system with your kangaroo courts?

What is the constitution of this “Gurgaon Arbitration Council?” What are the roles, responsibilities, and powers of the various parties in this GAC? What is it that gives them legal legitimacy? And more important, why are the public servants like District Commissioner, DCP Police, MCG Commissioner, etc abdicating their immense lawful power into the hands of a builder-lobby like REDCO? What are the credentials of REDCO that show it will be fair to the buyers, when all it has done is train real estate brokers. What are the credentials of Col Prithvi Nath, and what onhis resume indicates that he will be able to run this mammoth task of resolving “conflicts” and “disputes” between builders and buyers.

Instead of giving orders to the builders or buyers, why are the DC, DCP, and MCG Commissioner abdicating their lawful power into the hands of this “informal” platform called “Gurgaon Arbitration Council.” Why are they inserting into the execution of their powers (against builders, buyers, or other public servants) this step of referring complaints to the GAC? Is this informal GAC a method to help the buyers as much as it is to help their own kind. Allegations have been made against senior IAS officers like Mr Anurag Rastogi (ex Director General of Directorate of Town & Country Planning) for giving false and premature Occupation Certificates to builders like Raheja Developers and DLF? Allegations have been made against the FIRE DEPARTMENT for giving false fitness certificates, when there fire and safety systems were non-functional in projects like Raheja Shilas, Raheja Atharva, and Raheja Vedaanta. In fact, in Raheja Vedaanta there is only a 11 feet wide connecting road – on which a fire tender cannot even enter the premises. How was it given FIRE NOC? And HOW was it given an OCCUPATION CERTIFICATE in the absence of a sufficiently wide connecting road? These and many other questions are coming up regarding the behaviour of public servants, for which a CBI enquiry might someday be required. Should the public servants in power today not be a little more careful in allowing the builder-lobby dominated REDCO, and hence GAC, to handle such delicate matters.

You can see the original press release about the DC’s Launching of “Gurgaon Arbitration Council” in all its glory here http://firstreport.in/gurgaon-arbitration-council-gac-ombudsman-formed-under-the-pioneering-initiative-of-deputy-commissioner-gurgaon/ (archived here https://archive.is/r1r6g) and a collection of the various news items on GAC here https://www.rebelmouse.com/GurgaonArbitrationCouncil/

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14 comments
qbtpl1
qbtpl1 moderator

On one side the Prime Minister of India, Shri Narendra Modi, is distancing himself from the builders because their "image is bad" and keeping them at an arms length in his SMART cities, Housing for All, and AMRUT schemes .... 


On the other side we have the spectacle of the public servants in Gurgaon joining hands with the very same builders .... Builders like Mr Navin Raheja are forcing people to live in unsafe buildings like that of Vedaanta & Atharva. THERE IS NO VALID FIRE CERTIFICATE, and in a recent inspection it was found that the water was not connected to the fire hoses, and that the fire fighting equipment was all a showpiece ... PEOPLE in THESE RAHEJA PROJECTS ARE LIVING IN UNSAFE CONDITIONS ....


Should the public servants not be trying to get the builder to be complaint in the fire issues, rather than creating such legally suspect platforms like "Gurgaon ARBITRATION Council." It seems that the PM's message has not gotten clearly to the public servants in Gurgaon.

qbtpl1
qbtpl1 moderator

Aggrieved buyers are reaching out to all possible public servants like the PMO's office, and yet the public servants are reluctant to take action against Mr Navin Raheja in Gurgaon. With such a system, do you think that the "Gurgaon Arbitration Council" will be effective. 


What has happened to in the consumer and criminal courts Unitech is well known, and yet Unitech is a part of REDCO - which runs Gurgaon Arbitration Council. What has Ambience done with its buyers. DLF has been dominant and has been shown by the CCI, and accepted by COMPAT, to be dominant and ABUSIVE in Gurgaon. The problems with VATIKA are not hidden from everyone ....


So, these builders in collusion with Mr Navin Raheja are supposed to run "Gurgaon Arbitration Council?" 

qbtpl1
qbtpl1 moderator

Mr. Navin Raheja, MD, Raheja Group said “The image of most of the builders is unreliable in the eyes of the consumers today, due to increase of fraud cases in the market now. There is a huge communication gap between the builder and the consumer. Misunderstanding between the builder and the consumer should be fixed first. I look forward to GAC and hope that this will enable confidence in the people and act as a trust building enterprise.”


This  is the icing on the cake ...  A builder who has cheated and defrauded his buyers to such an extent that over 600 people have filed over 25 cases at the National Consumer Disputes & Redressal Commission (i.e National Consumer Commission), at theSupreme Court, and have complained to the Fire Department, the District Commissioner, to the Police, to HUDA, tothe Chief Minister's Office, To Prime Minister's Office, and yet Mr Navin Raheja is sitting on the "Gurgaon Arbitration Council" panel to resolve the buyers problems .... Ha ha. This is really funny. 

qbtpl1
qbtpl1 moderator

@atharva_owner @ranisantosh77 @qbtpl1 

Raheja Developers, of which Mr Navin Raheja is the MD has over 25 cases against it at the National Consumer Disputes Redressal Commission. A Supreme Court hearing is coming up on August 04, 2015 ... 


Every project that Raheja Developers is doing has sued him. Whether it is residents of Raheja Atlantis (his supposedly flagship project) who finally sued him on June 01, 2015 or Raheja Atharva in July 2014, or Raheja Vedaanta, or Raheja Navodaya. Even buyers of Raheja Shilas and Raheja Sampada are getting ready to sue him.


This Mr Navin Raheja is talking about "misunderstandings" and "communication gaps" between buyers and builders. 


This Mr Navin Raheja who has obtained Occupation Certificates by corrupt means is talking about "image" of builders. 


See below the list of cases against Mr Navin Raheja and Raheja Developers and you will start suspecting that this Gurgaon Arbitration Council is nothing but another elaborate trap for the aggrieved buyers.

qbtpl1
qbtpl1 moderator

Mr. Rohit Malik, President, REDCO, Haryana briefed about the mechanism of GAC to the gathering and “GAC will not only fulfill the Supreme Courts direction of clearing the clogged legal system but also lead to a healthy respect for fair play in global Gurgaon, one of the successful cities in the race to meet the benchmark set by the government for a smart city. This will create a synergy between consumers, administration and the builders.”


The question to ask is of the credentials of REDCO to address the buyer problems. According to the REDCO website http://www.redcoharyana.com/about-us.htm their achievements are about real estate brokers only !!:

  • "We have trained over 1500 Real Estate Professionals and channel partners through the RIRM
  • First ever Brand Compass for Gurgaon Vision 2020
  • Participated in Property Affaire, 2010
  • We have facilitated licensing of over 1000 brokers"

What are REDCO achievements??  And where CREDAI http://www.credai.org/code-conduct and NAREDCO failed (of which the builder Mr Navin Raheja is the the Chairman), what makes it possible that REDCO will succeed?


Why should a buyer face the builders under the protective umbrella of REDCO?? What are the credentials of Col Prithvi Nath?


And are the ground rules, of scope, jurisdiction, responsibilities, powers, members, review etc set up. Is this "Gurgaon Arbitration Council" complaint with the Indian Arbitration Act? http://lawcommissionofindia.nic.in/reports/Report246.pdf


Is Gurgaon Arbitration Council (GAC) complaint with the law of the land, or is another Kangaroo Court being created??

qbtpl1
qbtpl1 moderator

This is what the District Commissioner had to say according to the press release. 


Mr. T.L. Satyaprakash, Deputy Commissioner, Gurgaon said “This is a great initiative towards the welfare of the consumers. All good builders should collectively stand against the builders who are doing wrong and boycott them by creating peer pressure. Today most of the builders are not wrong but few wrong doers have maligned the image of good works which are being carved by the builders.”


Seriously? Builders like Mr Navin Raheja, who is sitting on the same table as the DC just have an "image problem?" 

qbtpl1
qbtpl1 moderator

Ms. Nazneen Bhasin, DCP, Gurgaon had this to say. “The builders are delaying the mechanism and the consumers are suffering due to it. Builders have to keep a good intention towards their consumers and towards what product they are delivering to their customers then only the mechanism for this ombudsman will grow otherwise not. Zone of possible agreement should be created.”


Ms Nazneen has made a valid point, but has the intention of the builders towards their customers been good? What do all the complaints that people are making to the police have to say about the "intention" of the builders? Why try to create a fantasy when the ugly reality is known to one and all.


And Ms Nazneen have any complaints been received about Mr Navin Raheja, who was sitting on your right hand side? What actions have been taken so far??


And Ms Nazneen, I (Dr.Sanjay Sharma) have filed a complaint against Mr Navin Raheja filed in the Cybercrime unit of Gurgaon in June 2014. You are the boss of the boss of the boss of the Head Constable (HC) who is investigating my complaint. What action are these people going to take unless there are "upar se aadesh."When this HC sees you sharing the dias  with peole like Mr Navin Raheja, what action do you think he will take on my complaint? 

qbtpl1
qbtpl1 moderator

Mr. Vikas Gupta, Municipal Commissioner of Gurgaon said “Most of the time the problem occurs to the consumers because of the failure of the builders in many cases. Competiveness among builders creates problems for the consumers. I believe that GAC will address all the grievances of consumers effectively. We should set a time limit pre-decided for the consumers, so that they understand that their problem would be fixed within a given time period.”


Will busy people like Mr Vikas Gupta be able to devote enough time to this initiative. There are over 100 builders under REDCO, with the DC Shri TL Satyaprakash saying that more like Vatika will be enrolled. With so many builders and hundred of thousands of buyers, can the Commissioner devote enough time to GAC? A recent article on NDTV.com is illustrative of how little time the Commissioner has for the general public of Gurgaon - is it reasonable to believe that he can devote time to GAC? The ndtv.com article is here https://www.rebelmouse.com/GurgaonArbitrationCouncil/flooded-gurgaon-you-have-a-complaint-good-luck-1246390397.html

qbtpl1
qbtpl1 moderator

Dear Mr Satyaprakash, 


Complaints have reached you about fake and premature occupation certificates in projects like DLF Express Greens in Manesar, and Raheja Atharva in Sec 109 Gurgaon, and Raheja Vedaanta in Sector 108, Gurgaon .....


What action has been taken so far??


And what about the fake fire certificates in the Raheja projects of Shilas, some Towers of Atharva, and of Vedaanta.


What is there is discuss in your Gurgaon Arbitration Council when you are not even acting on the complaints pending with you since March 2015 .... 

qbtpl1
qbtpl1 moderator

What are the authorities doing about the complaints that are already in their hands.  Months have gone by, and despite numerous complaints by buyers from Atharva, Vedaanta, and Navodaya nothing has been done on the ground. 


And emboldened by the inaction of authorities ranging from DC, to MCG, to HUDA, to Vigilance, to CMO, to PMO .... Rahejas are busy lying in their newsletters and taking out ads to ensnare more buyers. 


A screen shot from the June 2015 edition of Raheja Impressions newsletter http://www.raheja.com/pdf/june15-newsletter.pdf talks about delivered projects !! and on cue "happy" people chirp about the greatness of these projects. ALL LIES. 


There are no fire clearances in the buildings. Occupation certificates have been obtained by corrupt means, meaning that the govt officials have been compromised. But, nothing is being done by the authorities. 


IT IS THIS INACTION OF THE PUBLIC SERVANTS THAT IS ALLOWING THE BUILDERS TO GET AWAY WITH LIES AND CHEATING. FRAUD. FALSE DOCUMENTS. 

qbtpl1
qbtpl1 moderator

Should officers like Shri Anurag Rastogi, IAS, ex DG DTCP not be investigated for giving FAKE Occupation certificates to Raheja Vedaanta and Raheja Atharva? The builder Navin Raheja benefited to tune of Rs 100+ crores - what was the interest of Mr Rastogi? Mr Rastogi also gave a FAKE Occupation certificate for DLF Express Greens in Manesar ....


Investigation of public servants like Mr Anurag Rastogi, IAS, is a fit case for a CBI investigation. Recently in the case of Mr Raj Singh Gehlot, of Ambience, the CBI approached the Supreme Court seeking to prosecute Mr Gehlot under Prevention of Corruption Act. http://timesofindia.indiatimes.com/city/delhi/SC-notice-to-Ambience-chairman-Gehlot-for-VV-illegal-construction/articleshow/47918709.cms

  •  The Supreme Court on Thursday admitted a CBI petition seeking prosecution of Ambience Group chairman Raj Singh Gehlot for brazenly violating building bye-laws in collusion with government officials to illegally construct and sell flats on a small plot in South Delhi's posh Vasant Vihar in 1992. 
  • In the charge-sheet, the CBI had alleged that Gehlot had entered into a criminal conspiracy with assistant engineer in MCD, B R Malhotra and junior engineer Naresh Kumar Sharma, who facilitated issuing wrong completion certificate, illegal coverage and unauthorized construction in plot no. 39, Paschimi Marg, Vasant Vihar. 

It is fit to investigate by CBI how wrong completion certificates were issued to Raheja Developers & DLF , when even the FIRE NOC had not been issued to the Raheja Projects .... 

qbtpl1
qbtpl1 moderator

The builder representative is Mr Navin Raheja, of Raheja Developers. Why is the DC not acting against this builder despite many complaints. Attached is the DTP's letter to all and sundry about the serious deficiencies in the Raheja projects. https://www.facebook.com/AtharvaFlatOwners/posts/777835572314014


On one side the administration is not acting against this builder, and on the other hand they are reassuring buyers that they will handle conflicts and disputes in a "time-bound" manner. Why not start by resolving the problems with Raheja Developers and bringing them into compliance.


What confidence can the public have in such adhoc, legally infirm, platforms as "Gurgaon Administration Council" when people who are supposed to administer this have a terrible track record of performance. Buyers from every Raheja project have sued him including Atlantis, Atharva, Vedanta, and Navodaya. Soon Shilas and Sampada will be suing Rahejas as the problems are similar. 


Dear Public Servants Act on the complaints already at your desk rather than trying to palm off these problems to suspect platforms as "Gurgaon Arbitration Council" ......



qbtpl1
qbtpl1 moderator

Mr MCG Commissioner, Why don't you act against Raheja Developers, even after it has been exposed that the fire safety systems were a sham, Occupation Certificate is false and premature, and that the residents who have moved into the apartments at Atharva, Shilas, Vedaanta, and Vedas have no functioning fire system. 

qbtpl1
qbtpl1 moderator

This  is a meeting of the Gurgaon Arbitration Council with (L to R) Mr Navin Raheja (CMD Raheja Developers), Ms Nazneen Bhasin (DCP Gurgaon), Mr Vikas Gupta (Commissioner, MCG), Mr TL Satyaprakash (District Commissioner, Gurgaon).


Are these public servants unaware of the activities of builders like Mr Navin Raheja?? What message does it send to the rank and file of the govt servants about dealing with the likes of Mr Navin Raheja when complaints are made to them .... 


Image Courtesy: http://firstreport.in/wp-content/uploads/2015/07/036.jpg