Why Tax Chor Navin Raheja Is Still NAREDCO Chairman? PM Narendra Modi & NAREDCO Patron Shri Venkaiah Naidu Must Answer

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Pehle Tax Chori Phir Seena Jori, Wah Raheja wah.

Pehle Tax Chori, Phir Seena Jori, Wah Raheja wah.

On Feb 18, 2010 the Times of India published a small news item in it’s Chandigarh edition (not in the Gurgaon or Delhi Editions, where Raheja has most of his projects or where Raheja Developers have their office) on page 3 “Tax evasion worth Rs 80 crore unearthed.” It was about search and seizure operations on a builder and informed that “detection of tax evasion worth Rs 80 crore came during scrutiny of purchase orders and payments made for purchase of iron and steel used for construction.” http://timesofindia.indiatimes.com/city/chandigarh/Tax-evasion-worth-Rs-80cr-unearthed/articleshow/5586071.cms “During scrutiny, it was found that the firms never existed. The Raheja Group would make payment in the bogus firms and the entire amount would be withdrawn by group employees the next day.

Times of India, Chandigarh Edition, Feb19, 2010 on Tax evasion worth Rs 80 crore unearthed at Navin Raheja led Raheja Developers, Gurgaon.

Times of India, Chandigarh Edition, Feb 19, 2010 on Tax evasion worth Rs 80 crore unearthed at Navin Raheja led Raheja Developers, Gurgaon.

No newspaper has printed anything about the progress of the story in the last five-and-a-half years, and one would have expected that the investigation would have been “managed” by the builder. In a heartwarming tale, a thorough investigation was done by the Commissioner of Income Tax (CIT), and the Honorable Delhi High Court in an order dated 10 February 2014 has quashed the shield granted to the errant builder by the Income Tax Settlement Committee of immunity from imposition of penalty and prosecution. http://www.delhicourts.nic.in/feb14/Commissioner%20of%20Income%20Tax%20Vs.pdf with hyperlinks version at http://indiankanoon.org/doc/166191533/

Honorable Delhi High Court Order dated 10 February 2013 quashing the immunity from imposition of penalty and prosecution given by Income Tax Settlement Commission to Raheja Developers.

Honorable Delhi High Court Order dated 10 February 2013 quashing the immunity from imposition of penalty and prosecution given by Income Tax Settlement Commission to Raheja Developers.

The builder, Raheja Developers, is today knocking at the doors of the Honorable Supreme Court with a Special Leave Petition (SLP 17333 of 2014) pleading for continued immunity from imposition of penalty and prosecution by the Commissioner of Income Tax, with likely listing of the case on August 24, 2015. If the Honorable Supreme Court upholds the order of the High Court dated 10 February 2014 then the money trail can be followed. How this Rs 117.83 crore, that came back to Rahejas “under-the-table,” flowed in the Indian economy would be of great interest to the Supreme Court-appointed Special Investigation Team (SIT) on black money.

Raheja Developers Special Leave Petition No 17333 of 2014 pleading for continued immunity against imposition of penalty and prosecution by the Commissioner of Income Tax.

Raheja Developers Special Leave Petition No 17333 of 2014 pleading for continued immunity against imposition of penalty and prosecution by the Commissioner of Income Tax.

And it should be of great interest to the Ministry of Housing and Urban Poverty Alleviation, Govt. of India, under whose aegis is the National Real Estate Development Council, NAREDCO, that this Mr Navin Raheja is the Chairman of the august body. Is Mr Venkaiah Naidu, the Chief Patron of NAREDCO http://www.naredco.in/, aware that the Chairman of NAREDCO is a self-confessed tax chor, who presented false evidence, and committed perjury in the court of justice? 

Is Shri Venkaiah Naidu, the Patron of NAREDCO, aware that the Chairman of NAREDCO Mr Navin Raheja is a self-confessed tax chor?

Is Shri Venkaiah Naidu, the Patron of NAREDCO, aware that the Chairman of NAREDCO Mr Navin Raheja is a self-confessed tax chor?

A close reading of the High Court order shows that the case turned against Raheja Developers  because of the weak ethics and character flaws of the company’s management. The Honorable High Court determined that Mr Navin Raheja knew all along that the billing of Rs 117.98 crores was fake, but he chose to give false explanations all the way down his slippery slope. One “cannot be permitted to turn honest in installments,” observed the court. It is fascinating how the essential character of the top management can be exposed in a case about the dry subject of taxes, and how the same character flaws explain the crisis situation that the company stands at today.

By my count, more business leaders have failed and derailed because of arrogance than any other character flaw. -Harvey Mackay

By my count, more business leaders have failed and derailed because of arrogance than any other character flaw. -Harvey Mackay

Over 600 buyers have sued Raheja Developers across projects Raheja Atharva, Raheja Vedaanta, Raheja Navodaya, and Raheja Atlantis at the National Consumer Disputes Redressal Commission (NCDRC), and buyers in Raheja Shilas and Raheja Sampada are gearing up to do the same. The facts raised in this case of “bogus bills for steel and cement” have relevance to the cases at NCDRC, and can bring into question everything from  15% escalation costs to 11% increase in super area demanded by the Rahejas – all pivoted on the fact whether you can trust this builder and his statements at all.

Twenty five (25) cases by over 600 buyers are listed against Raheja Developers at the National Consumer Disputes Redressal Commission.

Twenty five (25) cases by over 600 buyers are listed against Raheja Developers at the National Consumer Disputes Redressal Commission.

And to make matters worse, fire system inspections on the Atharva & Vedaanta sites have revealed problems that show that these two sites are incomplete and unsafe, and probably have gotten Occupation Certificates by corrupt means. A news report on India News (Metro Channel) can be seen here https://www.youtube.com/watch?v=_IsloudOTUM They are tragedies waiting to happen as Rahejas force buyers to take possession and move into incomplete & unsafe buildings, after submitting to their extortionary demands of lakhs of rupees.

Allegations of Navin Raheja playing with the lives of its residents have proven to be true. Fire fighting equipment was all a sham, without even a working water supply to it in Raheja Shilas !! And the same is probably true of the other Raheja projects like Raheja Vedanta, Raheja Shilas, etc.

Allegations of Navin Raheja playing with the lives of its residents have proven to be true. Fire fighting equipment was all a sham, without even a working water supply to it in Raheja Shilas !! And the same is probably true of the other Raheja projects like Raheja Vedanta, Raheja Shilas, etc.

If the honorable courts deem the sites are “not fit for occupation,” and if the Occupation Certificates are cancelled for both the Atharva & Vedaanta sites, Raheja Developers are looking at a financial hit of over Rs 400 crores. It would be a fit outcome, because so far builders like Mr Navin Raheja have gotten away with far too much. Can these builders be allowed to sleep in peace while thousands of buyers work for the first 15 days of the month to just pay their monthly EMI  to fill the coffers of the likes of Rahejas, and then feel cheated every moment for the remaining 15 days of the month.

Honorable Chief Justice of India Shri HL Dattu: If a "common man who steals Rs 10 may be sent to jail for 3 months," then why should the powerful not be punished as severely.

Honorable Chief Justice of India Shri HL Dattu: If a “common man who steals Rs 10 may be sent to jail for 3 months,” then why should the powerful not be punished as severely.

TABLE OF CONTENTS
1. CHEATING THE TAXMAN
2. CHEATING THE BUYERS
3. FOLLOWING THE MONEY TRAIL
4. PROSECUTION, PENALTY & DETERRENCE
5. ANNEXURE: Timeline of Rahejas Rs 117.98 crore Tax Evasion Case

1. CHEATING THE TAXMAN

On 10 February 2010 a search was conducted in the business & residential premises of Raheja Developers, including that of Mr Navin Raheja. Several incriminating  documents,  cash  and  other  materials  were  seized. The incriminating documents contained evidence to show that the  purchase  of  cement  and  steel  aggregating  to  Rs.117.98  crores  from  5 parties  in  Gurgaon  and  Delhi  was  bogus  or  false.

Rahejas then decided to approach the Income Tax Settlement Commission (ITSC) which had vast powers, including the power to grant immunity to Rahejas from penalty and prosecution by the Commissioner of Income Tax (CIT). On 16 December 2011 Rahejas filed an application with the Income Tax Settlement Commission (ITSC) accepting that Rs 39.53 crores of the Rs 117.98 crores were bogus purchases. It meant that Rs 78.45 crores were genuine purchases by Rahejas. IT Settlement Commission then called for reports from the Commissioner of Income Tax (CIT).

The CIT progressively demolished Rahejas claims in a series of reports submitted to the ITSC, step by step. Instead of throwing themselves at the mercy of the courts for leniency, Mr Navin Raheja & Raheja Developers took the ITSC for a grand ride with lies after lies. That seems to be the fundamental DNA of this Raheja Group. By the time the last report was submitted by the CIT on 8 January 2013, it was shown conclusively that the whole amount of Rs 117.98 was bogus and fake purchases – not the Rs 39.53 crores that Rahejas had claimed in their settlement application.

The ITSC, in its meeting on 8 February 2013, decided that Raheja should pay the tax on the full amount of Rs 117.98 crores. ITSC also decided not to penalize Rahejas,  and gave them immunity from prosecution. This is what Mr Navin Raheja must have wanted and got; given that Rahejas had been completely cornered with incontrovertible evidence in a series of investigative reports by the CIT.

The COMMISSIONER OF INCOME TAX (CENTRAL)-II (CIT) disagreed with the INCOME TAX SETTLEMENT COMMITTEE (ITSC) and called into question the granting of immunity to Raheja Developers from imposition of penalty and prosecution. A case was filed by the CIT against ITSC (WP(C) 5262 of 2013) at the Delhi High Court. The Honorable Delhi High Court quashed the immunity from imposition of penalty & prosecution granted by ITSC to Rahejas on 10 February 2014. Rahejas appealed this quashing of their immunity at the Honorable Supreme Court  by filing a Special Leave Petition (No 17333 of 2014) that is likely to come up for listing for the 3rd time on 24 August 2015.

In the meantime, CIT approached the Honorable High Court for some clarifications about the implementation of their 10 Feb 2014 order that quashed the immunity granted by Income Tax Settlement Commission. In an order dated 17 November 2014 the high court issued clarifications, subject to the final decision of the Honorable Supreme Court in the SLP No 17333/2014 filed by Rahejas. Appearing for ITSC and defending immunity cover granted to Rahejas was Senior Advocate, Mr Salman Khurshid, who was also India’s Minister of External Affairs from 28 October 2012 to 26 October 2014.

Shri Salman Khurshid appeared for the ITSC on November 17, 2014 defending the immunity given to Rahejas from imposition of penalty and prosecution.

Shri Salman Khurshid appeared for the ITSC on November 17, 2014 defending the immunity given to Rahejas from imposition of penalty and prosecution.

Shri Salman Khurshid at Nayan & Kashish Raheja's wedding in January 2013.

Shri Salman Khurshid at Nayan & Kashish Raheja’s wedding in January 2013.

Shri Salman Khurshid inaugurating a photo exhibition by Nayan Raheja in April 2013. From the "Raheja Impressions" newsletter of June 2013.

Shri Salman Khurshid inaugurating a photo exhibition by Nayan Raheja in April 2013. From the “Raheja Impressions” newsletter of June 2011.

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Explosive !! How Cheating by “Branded” Builders Like Raheja Developers (CMD Navin Raheja) Have Caused Crash Of Confidence In Real Estate Market

The FIRE DEPARTMENT OBJECTIONS report on Raheja Vedaanta residential project is EXPLOSIVE!! In addition to exposing how senior IAS officers abdicated their duty, it exposes how Mr Navin Raheja & Raheja Developers took the buyers, public servants, courts, organizations like NAREDCO, and the mass media for a grand ride. Mr Raheja has left a toxic mess for all the unfortunate people who trusted him, or who were compromised by him, to clean up after him.

If you are planning to buy a property, or are an owner of an under-construction property, the story of how a group of buyers have taken Raheja Developers, and its MD Navin Raheja, HEAD-ON is a MUST READ. If you are getting ready to take possession of your property from a builder, then this is essential reading for you. You won’t find this news in the mass print or electronic media, for sad but obvious reasons, but this explosion will soon reverberate throughout Indian Real Estate. 

One of the most systematic and organized efforts to take on an unscrupulous builder is underway. The big question is will the current Chairman of NAREDCO, Mr Navin Raheja, have to face arrest if the case is taken to its logical conclusion. Over 600 Raheja buyers have already filed 25 cases at the National Consumer Commission (NCDRC) against Raheja Developers, and the fight for justice is spilling over on to many other platforms. This story of Raheja Buyers is going to be bigger than the landmark Belaire & Park Place Buyers fight against DLF at the Competition Commission of India, where mighty DLF was penalized Rs 630 crores.

  • FIRs against builders are no big deals now-a-days, with FIRs being filed by the Police against Unitech, Emaar-MGF, Era/ Adel Landmarks, Vigneshwara, Pal Builders, SKM, etc. Police have even arrested builders like Sunil Dahiya of Vigneshwara and Hem Singh Bharana of Era/Adel Landmarks.

The crux of the matter is that Raheja Developers is forcing buyers to take possession of apartments in projects that are incomplete and unsafe. The buyers are also being denied delay compensation, and are being saddled with escalation costs, increased super area, and many other additional charges. Now many buyers are putting their foot down, and are hauling the builder over coals. These buyers are poised to extract compensation from Raheja Developers that may be in excess of Rs 200 crore per project. Like a rat on a dissection table, the work of Raheja Developers is being analyzed in fine detail, and an air-tight case being built against the builder. The knowledge gleaned from this meticulous exercise can be used by buyers suffering at the hands of other builders, as many of the crimes of Rahejas are the standard stock of the Real Estate Sector.

We bring you this story at great personal risk. Rahejas have already filed a case against us at the Delhi High Court for writing against them. They have also filed a complaint against us with the Gurgaon Police to prevent us from writing, and to remove everything that we have written against them from the world wide web. And, most probably unconnected to Rahejas, our car was stolen last month from right outside our office. We have filed an FIR for that. We have also filed a police complaint, that will hopefully get converted into an FIR,  against unknown persons for cybercrimes, hacking, and destroying some of our articles and videos about Raheja Developers. 

TABLE OF CONTENTS

 

1. THE TALE OF THE FAKE FIRE FITNESS CERTIFICATE

The two (2) page letter of objections from the Fire Department to Raheja Developers is the lynchpin of this explosive tale. In understanding what it says, and what it implies, lie the keys to the palace of illusions built by Rahejas. The letter may have implications to the tune of Rs 500 crores for Rahejas, affecting everything from the delay compensation to punitive damages to be paid by the builder.
Fire NOC renewal denied to Raheja Developers for their project Raheja Vedaanta in Gurgaon. Builder is forcing buyers to take possession of these incomplete and unsafe apartments.

Fire NOC renewal denied to Raheja Developers for their project Raheja Vedaanta in Gurgaon. Builder is forcing buyers to take possession of these incomplete and unsafe apartments.

Page 2 of the Objections by the Fire Department to  the renewal of the FIRE NOC in Raheja Vedaanta, Gurgaon.

Page 2 of the Objections by the Fire Department to the renewal of the FIRE NOC in Raheja Vedaanta, Gurgaon.

When questions were raised about the validity of the Fire & Occupation Certificates, Mr Navin Raheja was brazen about it. He challenged buyers to get them checked anywhere, and told them to be ready to face dangerous consequences when the allegations were shown to be wrong. The allegations did not turn out to be wrong. And they raise serious question about how perverted can a man becomoe to ignore the safety of his own buyers.

The letter of objections from the Fire Department about Raheja Vedaanta raises some serious issues. A similar letter is expected on Raheja Atharva, but the matter is currently stuck for the last 3 weeks at the desk of Mr Ravi Sihag. https://app.box.com/s/wzpxik6x7wc4g0vbv9i0f5fyfqxmi7vf The first bombshell is that FIRE NOC for Raheja Vedaanta & Raheja Atharva has already lapsed, and Rahejas have not yet even bothered to apply for renewal in both the projects of Atharva & Vedaanta. This is despite the fact that Rahejas have handed over possession to some apartments, and around twenty families (of the total approx 1200 apartments) are already living there in unsafe conditions.

Even if Rahejas were to apply for a renewal of the FIRE NOC, there are some really tough conditions they have to meet. Amongst them:

  1. Missing Connecting Roads to the Vedaanta & Atharva complexes! In the drawings that Rahejas submitted there are supposed to be 12m wide road to Vedaanta, and 24m wide road to Atharva (though 2 Karam road is provided inexplicably in Town & Country Planning licence). But, in reality, there are only 3m (or 11ft) Kuchha roads! Without the road how are Fire Engines supposed to reach into the complex if a fire breaks out, and these minimum road widths are specified in the NBC Building Guidelines. The acquisition of the land and development of the roads is the responsibility of RAHEJA DEVELOPERS, and not the responsibility of HUDA (Haryana Urban Development Authority) as Mr Navin Raheja has been ranting recently. So, the first question is was the Fire certificate obtained despite this violation, and further how was the Occupation Certificate obtained? And why has Mr Raheja not developed the roads so far?
  2. There is a gas bank in Atharva which has not been approved !! https://app.box.com/s/ke4ffg1r4wivc9xm339cj95w4jjo6gym and video of the top Fire Official denying that there was any approval for the LPG gas bank here https://app.box.com/s/bjtodqhm47dhtoe3rl0zxeff5yhckswz Imagine a safety hazard of LPG Gas cylinders stacked together ….
  3. In Atharva and Vedaanta there were supposed to be 5,00,000 liters underground static water storage tanks, but only 1,50,000 liter tanks were found during the inspection. This capacity is inadequate to deal with serious emergencies.
Instead of providing 5 lakh liter underground static water storage tanks, Raheja Developers has only provided tanks of capacity 1.5 lakh liters.

Instead of providing 5 lakh liter underground static water storage tanks, Raheja Developers has only provided tanks of capacity 1.5 lakh liters.

An RTI response has revealed that the safety hazard and ticking bomb of  a LPG Gas Cylinder Bank was constructed by Raheja Developers in the Athrava & Shilas complex without any approval.

An RTI response has revealed that the safety hazard and ticking bomb of a LPG Gas Cylinder Bank was constructed by Raheja Developers in the Athrava & Shilas complex without any approval.

The rest of the letter of Objections by the Fire Department essentially recounts that the projects is suffering from serious deficiencies, and is a safety hazard.  The FIRE NOC of Raheja will not be provided until Rahejas either make the road, or give an acceptable timeline to the complainants; which given the proclivity of Navin Raheja looks to be a long stretch.

In essence, the Raheja & Atharva projects (and Shilas, Vedas, Vedaanta Floors) are nowhere near completion, and the Occupation Certificate has been obtained by corrupt means. The demands of tens of crore rupees that were raised by Rahejas at the “Receipt of Occupation Certificate” milestone are illegal and wrong. It was a mischievous fraud played by Rahejas on their buyers. On top of it, Raheja may have committed perjury in the Courts of Justice by intentionally providing incorrect information that they knew to be false.

There is pattern of Raheja Developers playing with the safety of  the residents in their projects. In July 2009 there was a fire in the Atlantis apartment of Mr Netaji. Then in March 2013 there was a gas blast in the house of Mr Chander in Raheja Atlantis. http://comments.gurgaonscoop.com/2014/05/15/is-your-money-safe-with-builders-indulging-in-criminal-disreputation-management/ Then in June 2015 there was a fire in the Raheja Shilas apartment of Mr Sridhar. https://www.youtube.com/watch?v=t79OxjOBDWk In all cases there fire fighting systems were found to be deficient, and the staff was ill-trained to handle fire emergencies.

21072009502Damage in E41 by fire in Raheja Atlantis 01

Fire in Raheja Atlantis, Gurgaon Apartment in July 2009.

Damage in E41 by fire in Raheja Atlantis 04

Fire in Raheja Atlantis, Gurgaon Apartment in July 2009.

Damage in E41 by fire in Raheja Atlantis

Fire in Raheja Atlantis, Gurgaon Apartment in July 2009.

Damage in E41 by fire in Raheja Atlantis 02

Fire in Raheja Atlantis, Gurgaon Apartment in July 2009.

Poor  and shoddy quality construction in Raheja projects has endangered the lives of the residents. The gas pipes laid by Rahejas corroded and exploded in 3 years - ten years earlier than expected.

Poor and shoddy quality construction in Raheja projects has endangered the lives of the residents. The gas pipes laid by Rahejas corroded and exploded in 3 years – ten years earlier than expected in Raheja Atlantis, Gurgaon.

Raheja Case LPG blast damage

Gas blast in Raheja Atlantis, Gurgaon in March 2013.

The apartments in Raheja Atharva, Raheja Shilas, Raheja Vedaanta, Raheja Vedas, and Raheja Vedaanta Floors are tragedies waiting to happen. It is possible that Mr Navin Raheja may be be booked under IPC 336 and 34, and also under Sections 31 and 32 (1) & (2) of the Haryana Fire Act of 2009. According to the IPC Act 336, Whoever does any act so rashly or negligently as to endanger human life or the personal safety of others, shall be punished with imprisonment of either description for a term which may extend to three months, or with fine which may extend to two hundred and fifty rupees, or with both. These sections also anticipate conspiracy of various officers in these Acts endangering life or personal safety of others.

      • What role did the CRM department and Ms Jyoti Anand have in misleading the buyers.
      • And what role did Marketing Manager, Mr Harinder Dhillon, have in mis-selling these projects.
      • What role did the GM of Corporate Communications, Ms Dimple Bhardwaj, have in misguiding the media and public about such acts.
      • Who are the other people in the company who have played an active role in deceiving the buyers , media, and the govt authorities.

 

q08 behind every great fortune Despite an avalanche misdeeds descending upon Rahejas, instead of backing down they are becoming more and more brazen – and virtually extortionists. Recently, Rahejas have raised demands of Rs 15-20 lakhs each from over 1200 buyers in Vedaanta and Atharva. That amounts to Rs 180+ crores over and above what the buyers had catered for! With over Rs 70 lakhs to 1 crore already paid to Rahejas by the buyers, these new demands on increase of Super Area and Escalation costs are nothing but extortion. As Jeevan Prakash Sharma writes in his article on the Super Area Racket that “It’s nothing short of extortion,” and the applicable Indian Penal Code for that is IPC Section 383. Compare the Rs 180 crore amount to the extortion amounts demanded by dreaded gangsters like Neeraj Bawania and Vikas Lagarpuria, and you will see that Mr Navin Raheja is effectively the betaaj badshah of jurm ki duniya.  A-Super-Area-Racket-Hindustan-Times-01-Nov-2014-1024x812

Somewhere in the quest for big money and great fortunes people lose their humanity, and so it seems has happened to Mr Navin Raheja. There are tragedies waiting to happen in the Raheja projects. As the Fire NOC won’t be renewed any time soon, what will happen to families that Raheja Developers have misled and deceived into taking possession. Some have already started living in the unsafe and incomplete apartments.

How can you explain Mr Raheja sending people to live in homes that are unsafe and incomplete. Where the fire safety equipment is defunct. Where help cannot each on  a 3m kuchha road in emergencies. It is beyond being selfish. On the slippery slope, beyond a certain point, people who think of other people as objects can indulge in very narcissistic and dangerous behaviour. “The dark side of self-obsessed fraudsters is that they see other people as objects,” Ms Frankel is quoted in an article in the Economist on the “Biggest Fraud in History.” http://www.economist.com/news/christmas-specials/21568583-biggest-fraud-history-warning-professional-and-amateur-investors “It is not that they consciously ignore others’ feelings, as selfish people do; rather, others do not figure at all. This is what makes narcissists such as MacGregor really dangerous. He showed no concern for his settlers. They were merely an extra source of funds …”

Over a few short years, esp after the launch of Raheja Atlantis in 2004, the broke and self-confessed failed scooter dealer has risen to a position of immense personal wealth. In addition, for the future they have  in hand “executable and sanction projects over 60 million sq. ft. & with projects spanning over 900 acres of land at various stages of deliberations” (see www.raheja.com/company-profile.asp) In other words, Mr Navin Raheja is stinking rich. At even a conservative estimate of Rs 1000 psf profit margin in future projects, from the 60 million sqft in hand he is looking at profits in excess of Rs 6000 crore, and cash flow many times more, and plus plus more. Then is the even larger income from the 900 acres of land in “various stages” of deliberation. And all of this by “ghoomaing topi” from one person to the other, and using OPM. (Other Peoples Money) The wedding of Mr Navin Raheja’s son, Nayan Raheja, was the event of the town in Jan 2013. http://photogallery.indiatimes.com/events/delhi/nayan-kashishs-wedding-ceremony/articleshow/18161792.cms The extravagance and excesses of the wedding were flaunted on the website http://www.nayankashish.com, and also published in the Raheja Developers newsletter called Raheja Impressions. The website has thankfully been shutdown, but an archive of the site is still available at https://web.archive.org/web/20130823152434/http://www.nayankashish.com/ Another website that has been shut down by Raheja Developers is http://www.rahejasez.com At one time this 5000+ acres of SEZ thing was supposed to to be the ultimate money making machine, (see an archive here https://web.archive.org/web/20121010105944/http://www.rahejasez.com/ ) but it all lies in ruins today. 

The Raheja SEZ is dead, and so is the site http://www.RahejaSEZ.com

The Raheja SEZ is dead, and so is the site http://www.RahejaSEZ.com

Another dead project in ruins is the vanity-named ‘Navin Minar will be iconic’ (three times the height of the ancient architectural wonder Qutub Minar) (http://www.millenniumpost.in/NewsContent.aspx?NID=18491 archived here https://archive.is/yRVQc ) that was supposed to come up at the site of the Kathputli Colony. Six years ago in 2009, Mr Raheja made big & outlandish claims (https://www.youtube.com/watch?v=lX2x9tcsCkU ), but even today in 2015 no work has started on his “ICONIC” Navin Minar.

Announced with great bluster in 2009, and already winner of many "awards," work has not even started on the "Navin" MInar, named after "Navin" Raheja.

Announced with great bluster in 2009, and already winner of many “awards,” work has not even started on the “Navin” Minar, named after “Navin” Raheja.

Despite these high profile failures, the bluster of Rahejas has still not gone. Mr Nayan Raheja claimed on April 06, 2015 on CNBC – TV18 that the Revanta project will be complete by June 2016 or latest by December 2016. http://www.moneycontrol.com/news/real-estate/prime-property-penthouse-at-rs-100-crore_1349850.html A realistic date is 2020 or 2021 based on their track record so far. 

Raheja's marketing agency Decomplex advises "publicity stunts" rather than the real thing.

Raheja’s marketing agency Decomplex advises “publicity stunts” rather than the real thing.

In addition to unrealistic bluster, Rahejas have gone a step further into pulling publicity stunts; no doubt encouraged by their new marketing agency Decomplex.  http://www.exchange4media.com/advertising/decomplex-marketing-bags-creative-mandate-for-raheja-developers_61010.html On it’s home page Decomplex recommends “Publicity Stunts,” and in the Revanta video above, the publicity stunt was to price one penthouse at Rs 1,00,000 per sqft, compared to the rest which were priced at an average of Rs 8,000 per sqft. Watch the video to see the lame excuses that Nayan Raheja gives to the anchor about the pricing rationale here http://www.moneycontrol.com/news/real-estate/prime-property-penthouse-at-rs-100-crore_1349850.html

Moneycontrol video of the ridiculous "publicity stunt" of Rahejas to price one penthouse of Revanta at Rs 100 crore.

Moneycontrol video of the ridiculous “publicity stunt” of Rahejas to price one penthouse of Revanta at Rs 100 crore.

Publicity stunts are also pulled by La Sagoreeka with whom Rahejas have a tie up for furnishings in their Raheja Ayana project. In a “bizarre marketing gimmick” a gold plated Lamborghini car was driven on to a 22 seater dinner table. The aim was to advertise the dinner table! http://gulfnews.com/xpress/dubai/life-style/dinner-anyone-1.1519097

But all these publicity stunts of Decomplex are just trying to put lipstick on a pig. You can’t cover you problems with farcical answers like the “Fire Drill at Atharva” https://www.youtube.com/results?search_query=fire+drills+atharva or “Fire Drill at Vedaanta” https://www.youtube.com/watch?v=uvEzpm137tQ to address the serious questions about the FIRE NOC.  Look at the poor quality of this video and compare it to the rest of their “marketing” videos; it just goes to show how much attention they pay to safety.

Raheja Developers' marketing efforts are like putting lipstick on a pig.

Raheja Developers’ marketing efforts are like putting lipstick on a pig.

A better video at showing the situation of the FIRE NOC in Raheja Atharva & Shilas was done by India News TV Channel. They had interviews with the DTP, Buyer, and Raheja Employee. They showed the inspection of the fire fighting systems and equipments in the Raheja complex, and found them to be non-functioning on-camera. In approx four minutes of video by Yogendra Bhaduria of India News (Metro News) the ground reality is captured well. Kudos to them for the effort. But, surprisingly this important story was not picked up by any of the major print newspapers, or even other electronic channels. The story is not small, it is just inconvenient. It is inconvenient story for the likes of Hindustan Times & Times of India who take large amounts of advertising and sponsorship money from the builders (who in turn take it from the buyers!) One should not be surprised by the continued silence Bureau Chiefs of the likes of Messrs Sanjeev Ahuja (HT) & Rao Jaswant Singh (TOI), but to hear them write about how buyers are “happy” in areas with no amenities, unfinished buildings, and creeky infrastructure is just SURREAL.  A recent article by Sharmila Bhowmick in Times of India “No amenities, but the first movers in Noida’s new sectors are happy” is jaw dropping. http://timesofindia.indiatimes.com/city/noida/No-amenities-but-the-first-movers-in-Noidas-new-sectors-are-happy/articleshow/48322530.cms Really, have these papers fallen so low to please their advertising and pocket-money masters – the builders?

One of the Surreal articles that the mass print media is pushing at buyers. No amenities, but the first movers in Noida’s new sectors are happy

One of the Surreal articles that the mass print media is pushing at buyers. No amenities, but the first movers in Noida’s new sectors are happy

What Sharmila Bhowmick writes in Times of India needs to be so quoted extensively, because the word “happy” is so jarring with what she describes.

No amenities, but the first movers in Noida’s new sectors are happy – Times of India – by Sharmila Bhowmick

 

NOIDA: Sonia, a 35-year-old working woman, recently moved to an apartment of her own in Noida’s Sector 78 from her rented home. At 8 in the evening, when she drives back home from her workplace in Delhi, the roads are pitch dark. Outages being common, after sunset, lights in her housing society depends on power backups. Though there are security guards, but with only two or three occupants in her building, which is still under construction, the evenings are eerie
Sonia keeps a list of phone numbers handy, just in case she needs to call a friend in case of an emergency since the entire area wears a deserted look. But despite the risk, she is happy to be living the way she does as she is finally saved from the burden of paying both rent and EMI.
Like Sonia, there are many desperate homebuyers who are increasingly taking up the option of moving into half-ready apartments in Noida’s new sectors, in an arrangement that the builders term as a ‘fit-out-basis-occupancy’. The electricity connection is tentative, so are most other amenities.
The condition outside the housing complex is even worse. The roads are still being constructed. Once you drive a bit further into the deeper ends of Sector 77 or 78, the roads turn into muddy trails, though you can see blocks of apartments ready from a distance. There are about five to seven builders who have invested in these sectors, with the number of flats built so far being around 5,000.
Nobody knows when these areas are going to become developed. “There are some buyers who come and insist they will live in their flats even in such conditions, so we are handing them over their flats after getting them to sign a ‘no-objection’ letter. Nothing is really fully functional, everything is makeshift. But we hope that within the next two years, the apartments will all be occupied,” said Himanshu Goswami, an assistant sales manager at Antriksh Apartments.
“Honestly, these sectors do not even look like they are a part of Noida. They look like some rural township. The roads haven’t been made and the development is shoddy,” Amit Jain, director of Mahagun Builders, said. So far, even as most apartments are chugging towards completion, the roads are potholed, the streetlights absent, markets haven’t taken off, medical facilities too are far off.
But the residents of these ‘fit-out’ apartments are beginning to find a way to manage in the chaos. “At least we now have our own flats to live in and are not having to pay rent, but it feels really unsafe how the construction work is still on, half the buildings are not lit with barely any occupancy. Despite such conditions, people are moving in to live,” said Rakhsha Thripati, one of the residents in Sector 78.

With the mass print media on its knees in front of the builders, Raheja has no one to show him his true face. The media is busy publishing his ads and ridiculous advertorials which are full of bluster, lies, and falsehoods. A recent advertisement by  Raheja Developers in Times Property is trumpeting – “Impeccable Record of Quality And Delivery” which is a lie, and so is “Projects Ready For Delivery” a LIE. “Marvels In The Making” are actually disasters in the making, and tragedies waiting to happen.

A Supplicant Media That Prints False and Misleading Advertisements Like from Navin Raheja Led Raheja Developers  Have Caused A Crisis in Confidence in Real Estate - And Consequently its Crash

A Supplicant Media That Prints False and Misleading Advertisements Like from Navin Raheja Led Raheja Developers Have Caused A Crisis in Confidence in Real Estate – And Consequently its Crash

Articles published in HT Estates like “Raheja Developers starts delivery of over 1,000 apartments on Dwarka Expressway” https://archive.is/YWR82  and “Raheja builds a floor in just five days at Revanta in Gurgaon” https://archive.is/HXyTA are just ways in which print media is helping Rahejas Developers fool more and more buyers. Builders like Raheja Developers are getting a lot of help from their friends in the mass print and electronic media.

2. WITH A LITTLE HELP FROM THE PUBLIC-SERVANT FRIENDS

The major source of Mr Navin Raheja’s feeling on invincibility has been the help extended to him beyond the call of duty by the public servants, esp during the Bhupinder Singh Hooda raaj. This combined with an obsequious media provided the fuel for his spectacular rise to immense riches. Buyers have made direct allegations against Mr Anurag Rastogi, IAS, for providing undue pecuniary benefits to Mr Navin Raheja & Raheja Developers by providing false & premature Occupation Certificates. This has been a pattern of Mr Rastogi, wherein Occupation Certificates were provided to Atharva, Vedaanta, and even DLF Express Greens even though the projects were certifiably incomplete – and remain so even a year later …

False and Premature Occupation Certificates were given by Mr Anurag Rastogi, IAS, in the DLF Express Greens project in Manesar.

False and Premature Occupation Certificates were given by Mr Anurag Rastogi, IAS, in the DLF Express Greens project in Manesar.

False and Premature Occupation Certificates were given by Mr Anurag Rastogi, IAS, in the Raheja Vedaanta project.

False and Premature Occupation Certificates were given by Mr Anurag Rastogi, IAS, in the Raheja Vedaanta project.

q08-Raheja-Illegal-OC-NBT-artilce-of-Anita-Yadav-investigation

False & Premature Occupation Certificates given to incomplete Raheja Projects without basic facilities.

False & Premature Occupation Certificate given to Raheja Shilas.

False & Premature Occupation Certificate given to Raheja Shilas.

After Mr Rastogi provided false Occupation Certificate to Raheja Atharva in June 2014, Mr Joe Saggar, a Raheja Vedaanta NRI buyer based in UK, wrote many emails to Mr Rastogi about the problems. Mr Rastogi ignored all the emails, and went ahead to give another false Occupation Certificate to Raheja Vedaanta in November 2014. Mr Saggar then went to meet Mr Rastogi in Chandigarh in December 2014 to apprise him of the problems with Vedaanta, but Mr Rastogi left office without meeting him, even though Mr Saggar had a confirmed appointment with Mr Rastogi. Mr Rastogi was transferred out of DGTCP in Feb 2015, but not before he had done considerable damage to thousands of buyers. And he had benefited builders to the tune of thousands of crores. Mr Anurag Rastogi’s case seems to be a fit case for investigation by CBI and Vigilance. If Mr Raj Singh Gehlot of Ambience Infrastructure could be charged by CBI (Central Bureau of Investigation) under Prevention of Corruption Act for collusion with public servants, why not Mr Navin Raheja. See http://timesofindia.indiatimes.com/city/delhi/SC-notice-to-Ambience-chairman-Gehlot-for-VV-illegal-construction/articleshow/47918709.cms In Gurgaon, the District Commissioner Mr TL Satyaprakash was recently seen launching the “Gurgaon Arbitration Council” for resolving builder-buyer disputes, with Mr Navin Raheja by his side.

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?

The problem with GAC is that the DC is abdicating his responsibility by outsourcing the dispute resolution to the builder lobby of Mr Navin Raheja and REDCO (another builder lobby). How can builders against whom complaints are being filed sit on the very same panel which is supposed to act on the complaints? See a longer analysis here http://comments.gurgaonscoop.com/2015/07/16/gurgaon-arbitration-council-gac-ombudsman-a-trapdoor-or-trapdoor-forbuyerso/

Around the same time the Honorable Chief Minister also launched the Allottees Grievances Redressal Forum (AGRF)” which was to have only Govt officials at the district level as it members. This is the correct approach as it keeps the builders out of the Redressal Forum. And, that is why it is inexplicable as to why Mr Satyaprakash has decided to merge the CM’s AGRF with his GAC, thus providing back-door entry to the builders into the Redressal Forum – and effectively defeating the very purpose of the CM’s constitution of the AGRF. 

Actions like these by the Executive branch of the Govt have led buyers to lose faith in them. Even the Legislative has failed the buyers as the drafting of laws to protect them seem to be in a perpetual limbo. Thus, two out of three pillars of democracy have failed the buyers. Even the fourth estate, or the media has failed the buyers. The only ray of hope has been from the third pillar of democracy – the Judiciary.  The Consumers Disputes Redressal Commissions, and the courts, have recently give some precedent setting judgements in favour of the aggreived and harrassed buyers. That is probably why over 600 Raheja buyers, of Atharva, Vedaanta, Navodaya, and Atlantis have filed 25 cases against the developer in the National Consumer Disputes Redressal Commission.

Twenty five (25) cases by over 600 buyers are listed against Raheja Developers at the National Consumer Disputes Redressal Commission.

Twenty five (25) cases by over 600 buyers are listed against Raheja Developers at the National Consumer Disputes Redressal Commission.

3. UNDER THE LENS AT THE NCDRC & OTHER COURTS

It has now become viable option to approach the Consumer Courts in disputes against the builder. A new breed of lawyers who are well versed in real estate issues is emerging, and the fear that they will be compromised by the well funded builder has also been mitigated. When you have 50 buyers coming together to file a case, the fees of the lawyer can be split amongst the members. Some of the cases against Raheja Developers started with each buyer pooling as low as Rs 10,000 each. From a cost vs. benefit analysis it makes sense to go for a legal battle. The buyers in the Raheja cases stand to benefit to the tune of Rs 15-20 lakhs each, and the original allottees of 2007/2008 stand to benefit to the tune of Rs 40 to 50 lakhs each. This is the scale of misdeeds of Navin Raheja led Raheja developers (no relation to the famous Raheja clans from South India). Today, it is not unreasonable for buyers to put Rs 50,000 to Rs 1,00,00 each to create a great war chest, given the potential benefits of fighting the builder to get their fair dues. When a buyers organization has Rs 1 to 3 crore in its kitty, it can take on the baddest of the builders.

    • One low hanging fruit if the project is inordinately delayed, or the work on it has stalled, or the Agreement is too lop-sided in favour of the builder, is to seek compensation at parity with what the builder charges when the buyer defaults. There is enough precedence that the courts will set the one-sided Builder Buyer Agreements and award the aggreived buyer 18% yearly compensation if they want to exit the project, or 12% yearly compensation for delay if they are willing to accept delayed possession. See the relevant important National Consumer Commission Judgements are here https://app.box.com/s/nyyc6nel8o3lmzaem5wp5r2v4l8107rw You can search for other relevant judgements at http://cms.nic.in/ncdrcusersWeb/search.do?method=loadSearchPub  and the current cases here. http://cms.nic.in/ncdrcusersWeb/login.do?method=caseStatus Everything that a smart consumer needs today is at his/her fingertips. Don’t hesitate to ask us for help if you need some.
  • There is also a strong case that the money paid for parking may have to be refunded by the builders if challenged in the courts. This aspect needs to be tested in the courts, and there is a very good chance that it will found to have been illegally charged. That itself is worth Rs 4 to 6 lakhs per buyer.
  • Another good benefit of suing the builder is that the project deficiencies can be minutely identified, and either the builder will have to bring them into compliance, or they will have to pay adequate compensation to the buyers.
  • Then there is the future issue of increased FAR (Floor Area Ratio). If this gets increased, then on the same plot of land a higher number of apartments can be built in the future – either number of towers will increase or the number of floors per tower will increase. This will soon become a battle point between the builder and buyers. It has to be legally tested as to who will own the extra FAR – the buyers or the builders. There is a chance that the FAR may be increased along the metro corridor of NPR (Dwarka Expressway or Northern Peripheral Road) & SPR (Golf Course Road Extension or Southern Peripheral Road) as it has happened in Delhi recently.

There is also a strong case to file lawsuits against Raheja Developers. Their Builder Buyer Agreements reek of bad faith and ill intent. There are submarine clauses that the builder is now exploiting. There are unilateral and bad faith interpretations by the builder of the patently unfair Builder-Buyer Agreements. Further, the builder has underperformed on the design and promised specifications, and is extorting unreasonable charges from the buyers. The builders actions are mischevious and all about abusing an unequal relationship where buyers have already paid over 90% of the greed cost of the property.

Last year, 5 Raheja buyers got together and decided to file a case in the National Consumer Commission. By the time the case was filed in July 2014, the group had grown to 43 members. It is this case 250 of 2014 that got the snowball rolling, and within the span of 1 year, over 25 cases have been filed at the National Consumer Disputes Redressal Commission. Their story was covered the Mint Newspaper recently about how the buyers were unwiling to take possesion of incomplete and unsafe buildings.

Mint had earlier covered Raheja projects in 2009, and the issues were similar. http://www.livemint.com/Companies/igXXjgecbLf47Yd4fiEnEM/Real-estate-companies-face-ire-as-homebuyers-band-together.html There the buyer mentioned in the 2009 article was Nitin Goel, who eventually did file a case against Rahejas in Mumbai. I flew to Mumbai at his request and submitted an Affidavit against Rahejas in his case. Interestingly, the first party in Mr Goel’s case was, not Rahejas, but Anuj Puri and Raminder Grover of Jones Lang LaSalle (JLL). He had booked his Raheja Vedaanta apartment through them, after being misled into believing that this was the Mumbai Raheja. Further, JLL misguided him about the construction status. JLL also moonlights as a broker for builders such as Rahejas, as you can see here https://www.jllresidential.co.in/PropertySearch.aspx

We also faced JLL in the CCI versus DLF case in 2011. https://www.rebelmouse.com/ccivsdlf/ The real story of how Jones Lang LaSalle caused the massive defeat of DLF in the Competition Commission of India (CCI) still needs to be told. They created a report based on fake numbers and questionable theories which we destroyed at the CCI. Once DLF had submitted the flawed JLL report the damage could not be undone. The flawed JLL and Genesis reports that eventually led to DLF losing the case are with us and can be shared on request. Our evisceration of their flawed reports, that led to the landmark judgement against the biggest builder in India is pages 4 through 10 here. http://www.scribd.com/doc/57893914/DLF-vs-Belaire-Park-Place-Owners-Report-by-Qubrex-Submitted-to-CCI-Competition-Commission-of-India-Final-Report-May-08-2010-Completed-Projects#scribd

Excerpt of our report in favour of the buyers of DLF Park Place & Belaire. We destroyed the report that Jones Lang LaSalle has presented in favour of DLF, and was one of the major reasons why DLF lost this landmark case in Competition Commission of India. DLF was penalized Rs 630 crore by CCI.

Excerpt of our report in favour of the buyers of DLF Park Place & Belaire. We destroyed the report that Jones Lang LaSalle has presented in favour of DLF, and was one of the major reasons why DLF lost this landmark case in Competition Commission of India. DLF was penalized Rs 630 crore by CCI.

The case of Mr Nitin Goel was eventually settled out-of-court, to the satisfaction of Mr Goel. This settlement out of court after a bruising fight was the pet strategy of Navin Raheja so that there were no fingerprints of his losses in the legal system. That way in case after case he could position himself as a blemish-free builder who was being tormented by the few greedy complainants. This Raheja strategy worked till the Wg Cdr Alok Verma & 43 Others filed the case in July 2014, after which there was no turning back to the black mark on his reputation.

The issues of Raheja Developers in the National Consumer Court are many. The impact of these on the buyers pockets is huge, and if the buyers win each could collect tens of lakhs in compensation.  Many of these issues currently in the consumer court, also do invoke many IPC sections that can be pursued in criminal courts. Some issues are:

  1. Delay compensation penalty is being denied. Raheja conducted a fraud poll, and then claimed that majority of the buyers did not want possession in 2011, and so they claimed to have slowed the finishing work on the residential apartments. What a cock and bull story. Rahejas were trying to avoid paying even the paltry Rs 7 psf per month penalty they had committed in their Builder Buyer Agreement (amounting to 2-4% per annum for most buyers), and now they may end up paying 12-18% per annum in compensation based on a reading of recent NCDRC judgements.
  2. Super Area has been increased by approx 11%. And the escalation charges of 15% are being demanded. Calculations done by one of the buyers, Mr Joe Saggar, show that actually the prices of input fell 7% during the time period when Raheja Developers claim to have constructed the buildings. Thus, the combined effect is a 27.6% increase in the price of the apartment has no basis in reality – it is a figure pulled out from the thin air like a Magician. But, always remember, that behind the Magician’s apparent “magic” is deception, distraction, and a sleight of hand.
  3. Even though the buildings are incomplete and unsafe, and not fit for possession, Rahejas are trying to charge “holding charges” of Rs 5 psf per month till the time the buyer takes possession. How more Kafkaesque could the Raheja World become.
  4. Club charges (Rs 50,000 to 1,00,000) are illegally imposed for the use of a “Community Center,” and according to RTIs even the parking charges are illegal.
  5. Then is the whole drama of overcharging on things like electric meters, AC ducting etc. All these adhoc charges are a rip-off by the builder, and need to be stopped in the Consumer Court.
  6. Stamp Duty charges were collected from many buyers over a year ago, and Rahejas have been illegally holding and earning interest on it. According to the District Commissioner’s letter, he was to immediately refund it with interest, which has not been done in many cases.
  7. All this network of interconnected scams, and the technical issues of plans, changes, costing, and billing will be argued threadbare in the National Consumer Commission.

The buyers hope to stop this loot in the National Consumer Commission, and chances are they will. But they are only approx 300 strong. Around 1700 of the approx 2000 buyers are unaware of the Raheja cases in Atharva, Vedaanta, and Navodaya, and are being fleeced.

In absence of widespread dissemination of this knowledge of the cases, Raheja Developers is persisting with the extortionary demands, and betting that buyers not directly involved in the case, or far away, will not come to know about anything, and will succumb to their demands. Most of the unaware buyers will pay up and be losers. Many will lose out on lakhs of rupees of their hard-earned money that they deserve to keep. If only they could get to know about these ongoing cases against Navin Raheja & Raheja Developers.

The best way, and society’s answer, to reach a large audience is the mass print and electronic media. But, the current mass media is letting down all these buyers. Media is betraying the trust reposed in the newspapers and TV channels as the Fourth Estate of Democracy.

The Bureau Chiefs of Hindustan Times and Times of India are keeping silent, and helping Raheja in the process. Their media has let everyone down. No wonder the newspaper sells to the kabadi (scrap dealer) at a higher cost for the paper it is printed on, than it costs to buy the printed daily newspaper. Printing news (or un-news) on the paper seems to actually diminish the value of the paper.

4. FAILURE OF MASS PRINT & ELECTRONIC MEDIA

The silence of the media in relation to the legal cases of Mr Navin Raheja and Raheja Developers is deafening. Is it not the responsibility of the media to inform the public about the things important to them.

There are thousands of buyers who are stakeholders in Raheja properties, and the legal cases are important for them.These property owners might lose lakhs of rupees by the correct information not reaching them. Even buyers in other properties should be informed so that they can apply some of the learnings in their own projects, and in dispute resolution with their builders.

And the crimes and misdemeanors of Navin Raheja and Raheja Developers are newsworthy too. More so because Mr Navin Raheja is the Chairman of NAREDCO (National Real Estate Development Council), and is a role model to other builders. Further, the stakes are very high running into hundreds of crore Rupees.

Yet the Bureau Chief of Hindustan Times & Times of India are strangely silent on the Raheja story. They seem to be happy reporting under their bylines the formation of the ridiculous Gurgaon Arbitration Council featuring Mr Navin Raheja, and yet are unable to write even a square inch against robber barons like him. And though the TV channels run to get Mr Navin Raheja’s sound bites, generally in his capacity as the Chairman of NAREDCO, they are strangely tongue-tied about his activities as Managing Director of Raheja Developers. There are a few good journalists, but most of the time their story gets killed at inception itself, or at the copydesk. To quantify this bias towards colored-truth, someone should do an analysis of the positive, future-oriented, and advertorial articles written for the builders in these two papers, versus the factual, informational, and negative news. We did not arrive at the low situation in real estate overnight, by we are willing to bet that none of that downward journey is reflected in the Gurgaon pages of either HT or TOI.

It is also not that the Bureau Chiefs are not aware of these important stories about Raheja. Their email boxes are choked with complaints from aggreived buyers, and unless the live like ostriches the stories are all around them too. The reason probably is that they make money (for the paper) by printing some news, and they also make money by ignoring some news. And that is how they have it their way, both ways.

But with or without the support of these “mass media” journalists, the Raheja buyers will overcome. After all they found each other to file hundreds of cases against Raheja developers. And, even the biggest victory of buyers in the DLF and CCI case happened without the help of the mass media. The media just played catch-up after the giant was felled. And, if the DLF Belaire and Park Place case has faded from the public consciousness, it is because those Associations decided to focus only on the legal process. If all you have is a hammer, every problem seems like a nail. Compared to their approach, the approach of the Raheja buyers is emergent, and is spreading to every platform – consumer, civil, criminal, EOW, Embassies, HUDA, Vigilance, Police, Fire Dept, DTCP, and CM, PMO, and Ministers.

5. RAHEJA – A FIT CASE FOR CRIMINAL COURTS 

Monetary fines in the Consumer Courts are not a deterrent to a builder like Raheja Developers. The money to be paid to some is always extracted / extorted from the remaining buyers. Even if Mr Navin Raheja realizes that he is batting on a weak wicket at the NCDRC, and is preparing himself to pay an average of Rs 30 lakhs to each of the 100 litigants, he is simultaneously busy extorting about 15 lakhs each from the remaining 300 buyers. So, at the end of the exercise he would have received Rs 45 crores, and paid out Rs 30 crore, coming out ahead by Rs 15 crore !! And, if the judges at the Consumer Court are a little lenient to him, he would come out ahead by more than Rs 15 crores!!

Anticipating the non-deterrence of monetary fines, the proposed Real Estate (Regulation and Development) Bill proposes jail terms for builders like Raheja Developers. The actions of the builder may not have resulted in visible spilling of blood, the acts are criminal nonetheless. And other company officials can also be made accountable under IPC Sections 34 and 120B.

FIRs and Jails for builders have been in the news recently. FIRs have been filed against Unitech, Emaar-MGF, Era/Adel Landmarks, SKM, Pal Builders, etc and MDs from real estate companies like Vigneshwara, Era/Adel Landmarks, Pal Builders, etc have also landed in Jail.

A lot of actions by Raheja Developers are also serious offences. And if a few honest public servants would look at the activities of this builder, there is a huge list they can begin with.

  1. The genesis of the projects like Atharva and Vedaanta itself was illegal, amounting to prelaunches and soft launches. The license issued by the DGTCP stipulates that no soft launch of the project is permitted, i.e., the developer cannot collect any advance prior to approval of the Building Plans, whereas in the case of Vedaanta residential project Raheja Developers had already collected advance and installment, and even executed the BBA on 13th April 2008, whereas the building plans were approved only on 18th June 2008. Rahejas had, thus, violated the terms of license.
  2. The builder has at the seeming “end” of his projects also indulged in illegalities. Rahejas have tried to pass of as fit for Occupation building that are incomplete and unsafe, and severely deficient in fire and safety issues. The builder can be booked under IPC Section 336 (Act endangering life or personal safety of others), and can also be booked under Sections 31 & 32 (1), (2) of the Haryana Fire Act 2009. The report of Objections from the Fire Department to Raheja Developers dated July 25, 2015squarely nails this.
  3. Mr Navin Raheja and Shri Anurag Rastogi, IAS could also be investigated under the Prevention of Corruption Act, 1988 just like Mr Raj Singh Gehlot of Ambience Infrastructure is being booked by the CBI. http://timesofindia.indiatimes.com/city/delhi/SC-notice-to-Ambience-chairman-Gehlot-for-VV-illegal-construction/articleshow/47918709.cms Like Mr Gehlot, Mr Navin Raheja was also the beneficiary of undue pecuniary advantage to the tune of hundreds of crores from the likes of Shri Anurag Rastogi, IAS  who facilitated the issuance of wrong Occupation Certificates.
  4. Raheja Developers has also committed PERJURY in the Courts of Justice (National Consumer Disputes Redressal Commission) in various instances. For example, it was the Colonizer’s (Raheja Developers) responsibility to acquire land and develop connecting roads of atleast 12m, but the builder has intentionally lied to the Courts putting the onus of providing the roads on HUDA.
  5. Raheja developers have also done CHEATING AND MISCHIEF BY substantially revising building plans without the consent of the existing allottees. The builder also increased the super area in excess of 5% without the consent of the allottees, as was stipulated in the Builder-Buyers Agreement.
  6. The builder has also made EXTORTIONARY demands of payments to the tune of several lakhs each, from captive & trapped customers who had already paid him tens of lakhs (in many cases 90%+ of the cost of the apartments). The builder has also collected almost Rs 5 lakhs each from hundreds of customers towards the payment of stamp duty. And, after not having deposited the stamp duty in govt treasury, or having conveyed the property in favour of the buyer even after the lapse of over 1 year, the builder is illegally holding on to the money collected from hundreds of buyers.
  7. The builder also was busted in a sting operation by Cobrapost regarding black money, international hawala, and recording lower prices than what the property was sold at to cheat the state treasury.
  8. Raheja Developers have also been accused of orchestrating a Rs 1000+ crore scam with the Delhi Development Authority in the Slum Rehabilitation Project at Kathputli Colony in Delhi. BJP’s Meenakshi Lekhi & AAP’s Ashish Khaitan have also called for a CBI probe into this issue.
  9. The builder has also run illegal Collective Investment Schemes in Sohna & Gurgaon, and also collected finance from the market without requisite approvals, via assured return schemes.
  10. The builder has also allegedly committed Cyber-Crimes, Identity Theft, Impersonation, Misrepresentation, Hacking, Defamation, Intimidation & Threats over Email & Phone as detailed in our complaint CC-505 at the Gurgaon Police Station. In return, Raheja Developers have filed a counter complaint against the authors based on fabricated evidence, forged documents, falsified financial accounts, makes false accusations to implicate innocents in serious offences, has important information omitted, and is designed to mislead public servants into using their lawful force wrongly against innocents.

When builders such as Raheja Developers, whose MD also holds the Chairmanship of NAREDCO (National Real Estate Development Council under the Aegis of Ministry of Housing and Urban Poverty Alleviation, Government of India) indulge in such criminal acts, the confidence of buyers in the Real Estate sector is bound to plummet. This is one of the major reasons why few new buyers are coming into the market. The ones who are already in the market want this nightmare to end, and the ones who are on the sidelines are happy sitting out this nightmare.

If builders like Raheja Developers (whose CMD is Chairman of NAREDCO) are taking their buyers for a ride, what can one hope from the other builders. When all is said and done, we hope the other builders will realize the blot he is on the image of NAREDCO, and will remove Mr Navin Raheja from the Chairmanship.

It is time for the cleaning to begin. The builders who at the slightest pretext are calling for govt help to revive the real estate sector (that constitutes 7% of the GDP blah blah) should start by holding accountable rogues like Mr Navin Raheja. Mr Raheja should be made to resign from the Chairmanship of NAREDCO.

6. SOCIAL MEDIA TRIUMPHS OVER MASS PRINT & ELECTRONIC MEDIA

The shenanigans, crimes, and misdemeanors of BUILDERS LIKE RAHEJA DEVELOPERS HAVE created a trust deficit in the real estate market, and are directly responsible for the its consequent crash. Corporate Real Estate Consultants like Jones Lang LaSalle (JLL), and the horde of property dealers have also been active participants in this great sham. The mass media which has misled many buyers by its omissions and commissions, has for its own short terms interests caused great long term losses, and continues to do so. That is why it is time to encourage alternate platforms to emerge.

There was a time when the go-to place was IndianRealEsateForum.com (IREF), but over time it has started compromising. Some of our articles were removed without explanation from IREF when the builders or their agents complained. And now, after its takeover in a Rs 8 crore deal by Housing.com, it seems to have lost its appetite to annoy the builder with anti-them comments. It was expected because Housing.com’s business plan is largely dependent for its future success on selling builder inventory via its online platform. Almost all major online initiatives like Housing, Proptiger, IndiaHomes, Magicbricks, 99acres, etc and Property Dealers are similarly compromised in favour of the builders. You will find none of them creating articles that expose the real workings of the real estate market, like we do.

QuBREX is unique among the Property Consultancy & Brokerage firms, and it strongly represents the interests of the buyers. Our work as had lasting impact via cases like the DLF-CCI and Rs 630 crore penalty, and many buyers have benefited directly from the information shared by us. But, we are ourselves dependent on a network of many people who contribute knowledge and support to us. As time goes by, the role of many will be disclosed, and we are truly fortunate to be a part of one of the most organized and systematic battles to rein in badmash builders.

The efforts against Navin Raheja & Raheja Developers is not about one builder, but about changing a way of doing business. The story “The Buyers New Home: How Builders Are The Modern Age Royal Tailors of the Emperor’s New Clothes” http://www.qubrex.com/raheja-ayana-how-navin-raheja-are-making-new-clothes-for-the-buyers-like-royal-tailors-for-the-emperor may be loosely based on Raheja Developers, but in fact is an expose on how almost every contemporary builder functions from the pre-launch to post-possession.

q08 raheja Buyer New Clother - Cast of Characters

Cast of Characters of our super blockbuster story at http://www.qubrex.com/raheja-ayana-how-navin-raheja-are-making-new-clothes-for-the-buyers-like-royal-tailors-for-the-emperor

Our aim is to create an active Knowledge Centre & Network for real estate related issues, because the challenges for the buyers with all builders are similar. We have worked with buyers of many builders, but the most organized effort is that of the Raheja property buyers. They have joined hands amongst various projects of Raheja, and with the combined efforts are collecting information and advice systematically via RTI’s and experts. In fact, some of them have become experienced consultants themselves, and can help other buyer groups.

It is also important that the buyers of future Raheja projects like Revanta, Aranya, Oma, Trinity, Highway Arcade, Ayana, Vanya, etc organize themselves and proactively start monitoring the performance of Rahejas. A small fee of Rs 50,000 to Rs 1,00,000 towards their Association will provide insurance for their property worth tens of lakhs or crores. They shouldn’t ignore things till it is time to harvest, only to find that the crop does not look like what was promised. There are already too many farmer suicides happening.

Similarly, if buyers in projects by other builders would like to organize, we would be happy to get them in touch with the key personnel in the Raheja buyers group.

There are problems across many builders. There are hundreds of protest videos by buyers on youtube. But, just a few minutes of shouting on camera is not going to solve anything. You need to be organized, and systematic; a lean and mean fighting machine.

The story of Raheja buyers is one that will bring success, and will have a great impact. We are fortunate to be associated with them. They needed a story teller to tell their side of the story, and that story teller happens to be us.

Stay tuned.

With warm regards,
Sanjay

9811987371, 9871219911

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

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/

Raheja Atharva Case Cited in Landmark Unitech Verve Case Asking Unitech To Pay Hefty Penalty To Buyers

Hi,

You must have already heard about the recent case of Unitech being asked to pay 18% interest on money taken from the buyers in Unitech Verve …..
In the Unitech Verve case the Raheja Atharva case (of Wng Cdr Alok Verma & 43 Others) was also mentioned. Every step that the Raheja buyers are taking against Raheja Developers is history & precedent setting. The screen capture from the Unitech order mentioning the Raheja Case at the National Consumer Commission (NCDRC) is as below:
 
You can see the Unitech Verve judgement attached to this email. The Unitech Verve Case as reported in the media is as under:

Unitech asked to pay Rs 4.77 cr for delay

TNN | May 9, 2015, 02.24AM IST
NEW DELHI: A real estate firm has been directed by the apex consumer commission to pay Rs 4.77 crore to seven buyers for "huge delay" in handing over apartments to them, noting that the builder had attempted to make profit at the cost of others.
The National Consumer Disputes Redressal Commission bench presided by Justice J M Malik noted that the apartments booked nine years ago in Greater Noida were yet to be delivered by Unitech Reliable Projects Pvt Ltd and asked it to pay Rs 4,77,58,658 with 18% interest to the seven consumers.
"There is a magic in that little word 'home'. It is a mystic circle and surrounds comforts and virtues, never known beyond its hollowed limits. However, customers are exasperated by senseless delay made by the Builder of a colony," the commission said.
"It must be borne in mind that there is a huge delay in handing over possession of the premises in dispute, i.e., about 9 years. The opposite party (builder) has made an attempt to feather its own nest, i.e., to make profits for itself, at the cost of others' expenses. The opposite party has utilized the amount for its own purposes," it said.
The commission also directed the firm to pay Rs 1 lakh each to the complainants for harassment and mental agony. According to the complainants, in 2006-07, the real-estate firm had advertized for availability of flats in their project 'Unitech Verve' in Sector Pi-II at Greater Noida that was scheduled to be delivered within 36 months of signing of allotment letter.
The seven complainants said that they had applied for flats, either individually or jointly, and had paid the money demanded by the builder. However, after the project got delayed, they filed a complaint before the commission in October 2012. The firm submitted before the commission that it was unable to hand over possession of apartments to them. It, however, submitted that it was ready to pay 10% interest to the consumers as per the agreement entered into between the parties. 
— PTI
As of May 09, 2015 (Mother's Day), there are 19 cases, with over 350  (approx)  aggrieved buyers, against Navin Raheja & Raheja Developers at the National Consumer Commission.

Cases are by buyers from Raheja Atharva, Raheja Vedaanta, & Raheja Navodaya.
Even Raheja Atlantis buyers have collected a corpus of Rs 10 lakhs for the legal case against Rahejas for breach of contract and deficiency of services, and will soon be filing it. 
Every one of Navin Raheja's project is in trouble because they took buyers for fools, and thought of themselves as almighty. Becoming the Chairman of NAREDCO seems to have made the problem worse for Mr Navin Raheja as it seems to have made them believe that they were the greatest builders that India had produced so far – haha. And the awards that they tom-tom to show they are the best, we all know what the reality is. Time, and buyers, will prove that Rahejas were and are delusional.
And, in another mighty stroke of delusion, Rahejas tried to garner attention by launching a Rs 100 CRORE apartment in Gurgaon !!! What are these people smoking. And see the junior Raheja, Nayan Raheja, tie himself in knots trying to explain this stupid move in this priceless video here http://www.moneycontrol.com/news/real-estate/prime-property-penthouse-at-rs-100-crore_1349850.html Stupidity, thy name is Raheja. Vanity, thy name is Raheja. Cheats, thy name is Raheja. Fraudsters, thy name is Raheja.
And, in a display of the shallowness of Raheja Developers, they have filed a complaint against us (QuBREX) in the Gurgaon Cyber Crime cell for writing the article at http://www.qubrex.com/raheja-ayana-how-navin-raheja-are-making-new-clothes-for-the-buyers-like-royal-tailors-for-the-emperor Rahejas can try to scare us with all these actions, but they must first answer our charges. 
  • Why are Rahejas trying to modify their Wikipedia page to remove the reality about their mis-deeds. Their agents come under all sorts of names, and try to change the pages. Many of these Raheja agents have been caught and banned from wikipedia. You can see the current wikipedia page here https://en.wikipedia.org/wiki/Raheja_Developers, and their attacks starting Nov 2014 here https://en.wikipedia.org/w/index.php?title=Raheja_Developers&offset=&limit=250&action=history
  • Also Rahejas have impersonated others to get content removed from the web. The list of their crimes goes on and on, and we would like to ask them to respond to the following. Why did the Rahejas use the account ZeeBusinessMedia@gmail.com to falsely claim copyright on our videos from this account https://www.youtube.com/user/qbtpl by pretending to be from the Zee Television Channel. Mr Raheja, or agents acting on behalf of Mr Raheja are criminals for having done such acts. Soon, the noose will be around them for these, and many more, criminal acts. The actual Zee Business Media has their own @esselgroup.com domain and need not create fake email accounts, and they have no need for takedown of videos of such fraudsters as Navin Raheja & Raheja Developers.
So, there you go. In addition to the civil and consumer cases that are against Navin Raheja & Raheja Developers, there must now be criminal and police cases against these badmash builders. 
What else would you call a builder that got Occupation Certificates for Raheja Atharva & Raheja Vedaanta by corrupt means. They may have benefited the people who gave them fake OC, but Raheja have cheated buyers of hundreds of crore rupees. And it is these buyers who are coming after Rahejas now. 
Below is the news article about the fake OC. And though the Nav Bharat Times did not have the courage to write the name of the builder in the news item. We can disclose the name of this cheat, corrupt, and fraudulent builder who obtained fake Occupation Certificates for projects in Sectors 109 and 108 of Gurgaon as -Raheja Developers.
Take that Navin & Nayan Raheja.

pdf icon judgement2015-05-07-Unitech.pdf

How Property Buyers Might Get Hundreds Of Crores In Compensation From Raheja Developers

Hi,
Raheja Developers, Senior Vice President of Marketing, Mr Harinder Dhillon barged into our premises last evening (Feb 13, 2015) in my absence. He appeared without prior intimation or appointment, and was escorted out of our premises by my colleagues Ms Sonia Vaid & Sanjeev Kumar. We are very disturbed by such actions.
Could you please call Mr Dhillon 9971091903 or email hdhillon@raheja.com and convey to him the stupidity and futility of his actions. We already have a cybercrime complaint lodged against Raheja Developers with the Gurgaon Police, and would request Mr Dhillon to refrain from such intimidating behaviour.
And we want to give a clear message to Mr Navin Raheja, MD of Raheja Developers. You are a fraudster and a cheat, and we know that from personal experience with you. Please keep your filthy hands off us.
Thanks,
Sanjay
Itna karwa na bano ki koi tumhe thook de,
Itna meetha bhi na bano ki koi tumhe nigal hi le.
– Old Poonchi Proverb
इतना करवा ना बनो की कोई तुम्हे थूक दे,
इतना मीठा भी ना बनो की कोई तुम्हे निगल ही ले.
– Old Poonchi Proverb
 This is the story of how hundreds of buyers are now coming after Raheja Developers (Saket, Delhi wale) to extract interest / compensation to the tune of hundreds of crores of rupees. Around 200 buyers in Raheja projects Vedaanta, Navodaya, and Atharva have already filed 12 cases in the NCDRC against Raheja Developers, and more are expected to be filed soon. In the historic and landmark DLF vs CCI case the Rs 630 crore penalty on DLF was deposited in the Supreme Court Registry with no benefit to the buyers, but in the Raheja case any benefits won at the National Consumer Disputes Redressal Commission (NCDRC) will flow into the buyer accounts directly.
List of Court Cases Filed Against Navin Raheja & Raheja Developers at the National Consumer Commission as of Feb 09, 2015.

List of Court Cases Filed Against Navin Raheja & Raheja Developers at the National Consumer Commission as of Feb 09, 2015.

A strong case has been built at the National Consumer Commission, among other things, that the delay compensation of Rs 7 psf per month (less than 2% on annual basis compared to cost of apartment) should be enhanced to at least 18% per annum. After the Competition Commission of India found the Builder Buyer Agreements (BBA) of DLF to be one-sided http://www.cci.gov.in/May2011/OrderOfCommission/192010S.pdf, and after numerous recent judgments where the state and national consumer courts have ordered builders to pay 18% interest to the aggrieved buyers, the chances of a similar win for Raheja property buyers have been bolstered.  The essential arguments for enhanced compensation rest on the doctrines of “Fairness” and of “Good Faith,” and of showing that the builders entered into Agreements with malicious intents. The modus operandi of Raheja Developers business seems to be to earn excessive profits by bait and switch, and it amounts to a breach of the “implied covenant of good faith and fair dealing.”
In this fight between Raheja Developers and its aggrieved buyers it seems that the authorities like DTCP (Director of Town & Country Planning) might also get singed. The instant matter here is the Occupation  Certificates that have been given to the Raheja Projects of Atharva and Vedaanta (Vedanta) by Shri Anurag Rastogi, IAS. The buyers have alleged that the Occupation Certificates were given by  corrupt means for demonstrably incomplete projects, and have lodged complaints with the Chief Minister of Haryana’s Office, Prime Minister of India’s Office, and the HUDA / DTCP Greviance cell.
q08 Raheja Forbes PMO article 2015-01-15_074129
The matter of laxity by DTCP seems serious. In the case of Vedanta (Sector 108), in addition to the complex being incomplete and lacking basic facilities, there was no approach to reach the complex !! This 24 meter approach road has become a major bone of contention, because even the land for its construction has not been acquired. Rahejas have for years been claiming that the 24m road was the responsibility of HUDA, which is turning out to be a blatant lie. HUDA has clearly said that only roads of 60m and above are their responsibility, while “internal sector road, i.e. 24m road are to be constructed by the builder at their own level. This is not covered under the HUDA policy.” Specific clarifications have been sought as to who – HUDA or Raheja – was supposed to acquire the land, but either way it seems that DTCP erred in giving the Occupation Certificate. How did Mr Anurag Rastogi, IAS, issue the Occupation Certificate for this complex when there was no road to reach it, the project was incomplete, none of the common and community facilities were in place, no water, no sewerage, …. The situation is exactly the same in 2015 as it was in 2011 when Rahejas were supposed to complete and handover the project.
Why did Mr Anurag Rastogi, IAS, Director, Town & Country Planning, issue the Occupation Certificates to Atharva & Vedaanta, despite numerous emails to him to caution him about the true state of the complex, is not clear. But, the benefits to Navin Raheja & Raheja Developers in getting these Occupation Certificates are very clear, and to the tune of hundreds of crore rupees.
Shri Anurag Rastogi, IAS, by signing the Occupation Certificate gave huge monetary benefits to Mr Navin Raheja and Raheja Developers. The day the Occupation Certificate was signed Mr Raheja could raise the demand for the last 5-10% installments of the apartments, and could immediately start charging monthly maintenance. With an average Rs 10 lakhs demanded for every apartment (say 1000 apartments), and Rs 4 psf per month maintenance charges, Mr Raheja was able to demand about Rs 100 crores from the buyers immediately, and Rs 1 crore every month starting from the day Mr Rastogi signed the Occupation Certificate. In addition Rahejas illegally raised the demands for stamp duty and multiple ad hoc charges, demanding another approx Rs 50 crores from the buyers. All of this was because the OC was granted prematurely to Rahejas, and the buyers allege that it was by corrupt means. The benefit of the “fake” Ocupation Certificate to Raheja Developers was immense.
Signature of Shri Anurag Rastogi, IAS, that prematurely benefitted Raheja Developers to the tune of Rs 150+ crore.

Signature of Shri Anurag Rastogi, IAS, that prematurely benefitted Raheja Developers to the tune of Rs 150+ crore.

Mr Raheja has become rich by questionable and corrupt means.
That Rahejas have indulged in corrupt practices has never been in doubt. Rahejas were recently busted by Cobrapost in a sting operation on  black money where it was disclosed that their operation was international, spanning even Dubai and Sharjah. http://cobrapost.com/index.php/news-detail?nid=7290&cid=23
q08-Raheja-kartik-cobrapost-blackmoney-sting-2014-11-27_130607

Sting Operation by Cobrapost that revealed how Raheja Developers were dealing in black money, with operations spanning Dubai & Sharjah.

 q08-raheja-tax-evasion-in-Feb-2010

In 2010 over 15 of Raheja premises were raided by the Income Tax department, and evasion worth around Rs 80 crore was detected. http://timesofindia.indiatimes.com/city/chandigarh/Tax-evasion-worth-Rs-80cr-unearthed/articleshow/5586071.cms It is also reasonable to conclude that Raheja management not only siphoned off the money entering the company as black money, but might have been 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-incomplete-projects/ They have even gone to the extent of providing poor quality construction that endangers the lives of the residents. There was a fire in Raaheja Atlantis in 2009, and a gas pipe burst in 2013 in the same complex. The gas pipeline burst in Apartment E 33 of Raheja Atlantis in 2013 causing injury to a maid.   In Caravan magazine http://www.caravanmagazine.in/reportage/road-gurgaon  Praveen Donthi reports “that building’s (Raheja Atlantis) LPG pipes were improperly installed, and had corroded ten years earlier than expected.” 

Poor  and shoddy quality construction in Raheja projects has endangered the lives of the residents. The gas pipes laid by Rahejas corroded and exploded in 3 years - ten years earlier than expected.

Poor and shoddy quality construction in Raheja projects has endangered the lives of the residents. The gas pipes laid by Rahejas corroded and exploded in 3 years – ten years earlier than expected.

 There are allegations that the Kathputli Colony Slum Rehabilitation Scam in collusion between Raheja Developers & Delhi Development Authority (DDA) is in excess of Rs 1000 crore. http://daily.bhaskar.com/news/DEL-aap-lodges-complaint-on-slum-redevelopment-issue-4636393-NOR.html Rahejas have also run illegal Collective Investment Schemes in Sohna & Gurgaon, https://app.box.com/s/wopmrixbdexyput16jxe and recently the Honorable Supreme Court has ordered the CBI (Central Bureau of Investigation) to probe Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) for turning a “blind eye” to these multi crore scams. http://www.business-standard.com/article/pti-stories/cbi-to-probe-rbi-sebi-for-turning-blind-eye-on-ponzi-scams-sc-115021301730_1.html 
Rahejas are continuing with their Ponzi-like schemes of launching new schemes to mop up more and more money, even as their older schemes are languishing. They are also inciting their brokers to commit cognizable offences in (mis)selling their projects like the new schemes of Raheja Ayana in Sector 79B, and Raheja Vanya in Sector 99. http://comments.gurgaonscoop.com/2015/01/14/raheja-ayana-gurgaon-insidious-role-of-brokers-in-new-launch-in-sector-79-by-raheja-developers/
q08-Raheja-Ayana-Ad-Times-of-India-2015-02-11_064750

In a Ponzi like scheme Rahejas keep on launching new projects, even as older projects are still incomplete 8 years after being launched. Rahejas ensnare new customers by false promises of completing the projects in 36 months, etc ….. This is the advertisement of yet another launch from the Times of India Feb 11, 2015.

Cheating and corruption seem to be the magic ingredients of Mr Navin Rahejas accumulation of a great fortune that was on display during his son Nayan Raheja’s wedding with Kashish Goel, https://www.youtube.com/user/rahejamedia/search?query=wedding. How else did a failed scooter dealer reach to a stage where he claims to be “one of the biggest companies in India with executable and sanctioned projects over 60 million sq.ft in hand with projects spanning over 900 acres of land at various stages of deliberation.” https://app.box.com/s/kulgmwza7jxsre4krpx5 
Wedding videos on the Raheja Developers website of Navin Raheja's son Nayan Raheja with Kashish Goel.

Wedding videos on the Raheja Developers website of Navin Raheja’s son Nayan Raheja with Kashish Goel.

The way to Navin Raheja’s riches is to try to decode his business philosophy and approach. The way  forward in Mr Navin Raheja’s world seems to be to violate the doctrine of “Fairness” and that of “Good Faith” with impunity, and the essence of the legal cases is the establishment of the violation of these two doctrines. By violating these two doctrines he found an easy source of Other Peoples Money (OPM) that could be be obtained at almost zero cost to him. Instead of raising money at 12-36% per annum from financial institutions, he just raised money from the buyers, used it for his own purposes, and gave them much less than he had promised – shafting buyers doubling by giving them substandard goods/services and also delaying their projects as he used the money for his own activities.
To understand the criminal mind, picture it this way. You go to a Maruti dealership and see some cars. You like the SX4 model costing about Rs 10 lakhs. You book it and pay the money. You are told that the car will be delivered in 3 months. One year later the car is delivered and is an import of a Czech model over 3 years old – not even an Alto or Swift which at least have good workmanship. You have been grandly shafted. The dealer not only used your Rs 10 lakhs for 1 year, but gave you something that must not have cost him more than one lakh rupees. How would you feel? Well, the Rahejas pulled this off with charging Rs 5 lakhs for a “Hacker or equivalent” kitchen in Atlantis, and then delivered a kitchen that must have cost not more than Rs 50,000, and most probably was imported from China. You can see the extremely poor quality of work here https://www.facebook.com/media/set/?set=a.693904857373753.1073741827.296742357090007&type=1&l=988e4decc9
How Raheja Developers got Occupancy certificate for an demonstrably incomplete Raheja Athrava is subject matter of complaints to PMO, HUDA, and other grievance platforms.

How Raheja Developers got Occupancy certificate for an demonstrably incomplete Raheja Athrava is subject matter of complaints to PMO, HUDA, and other grievance platforms.

The illegalities started from day 1. In 2008 Mr Harinder Dhillon sent  instructions (which accidentally were leaked to Mr Bangia) in his company that Bangia “ko thanda kar do.” Mr SK Bangia had unearthed through RTI (Right to Information) that the sanctioned building plans for Raheja Atharva (Sector 109) had not been approved by DTCP,  but Raheja Developers had still gone ahead in raising a demand for lakhs for rupees from each buyer in September 2008 claiming that “the building plan have been approved after licence by Director, Town & Country Planning, Haryana.” This was a lie and designed to illegally raise over Rs 20 crores from the buyers. Being caught in the act by Mr Bangia was the cause of Mr Dhillon’s ire, and he also illegally cancelled Mr Bangia’s booking. Mr Bangia filed a case which is winding its way through the courts, and among other things Mr Bangia has demanded 18% interest compounded monthly as penalty.

In the twisted world of Mr Harinder Dhillon, Senior Vice President, Sales & Marketing, Raheja developers Delhi's largest drain can be described in marketing materials as a paradise-like bird sanctuary to trap buyers.

Mr Harinder Dhillon, in 2008, passed instructions to his juniors in mafia style ki Bangia “ko thanda kar do.”

 The analysis of the Raheja Developers actions boils down to understanding the criminal and malicious intents that drive them. Some times they have skimmed so much from the product that they have essentially changed the basic nature of the product. Their actions have basically been to exploit for their own gains the basic assumptions of business dealings – the notion of “fairness” and the notion of “Good faith.”
  • VIOLATION OF THE “FAIRNESS” DOCTRINE: This is being invoked by buyers who have decided to take possession of their apartments at some stage. They are demanding that they be paid delay compensation at the same rate at which Rahejas charged them interest when they delayed their payments to the builder. This notion has been upheld by the Competition Commission of India when studying the DLF Builder Buyer Agreements, and appeals to the instinct of “fairness” that is present in all normal people. The color of the money that Raheja took is the same as the color of the money he must pay out.
    • For 3 complexes that Rahejas launched in 2007, consisting of approx 2000 apartments, with average of 4 years of delay (if he eventually does complete them into a stage that people are willing to take possession), and an average cost of Rs 70 lakhs per apartments, the amount that Mr Navin Raheja must pay out as compensation  works out to be in the neighborhood of Rs 1,300 crores. 
    • Of course, Mr Navin Raheja and Raheja Developers can easily pay this. After all, they have over 60 million sq.ft in hand, and 900 acres of land in “various stages of deliberation” as the 18 legal notices that Rahejas sent to us in April 2014 stated. https://app.box.com/s/wmsqdri9sbme31jl08l7re78z8n4xd62
    • The exact language from the prayer in the National Consumer Commission of Atharva Towers Owners Association vs Raheja Developers Ltd is “Interest at the rate of eighteen percent (18%) per annum compounded monthly, on the total amount paid by the Allottees to the Opposite Party towards their respective flats, from the expiry of thirty six (36) months (computed from the date of payment of the booking amount) until the actual physical possession of the respective flats.” 
  •  VIOLATION OF THE “GOOD FAITH” DOCTRINE: This is a key doctrine when signing  agreements.Agreements are signed in Good Faith, and this has been consistently betrayed by Navin Raheja & his employees.
    •  In contract law, the implied covenant of good faith and fair dealing is a general presumption that the parties to a contract will deal with each other honestly, fairly, and in good faith, so as to not destroy the right of the other party or parties to receive the benefits of the contract. https://en.wikipedia.org/wiki/Good_faith_(law) It is implied in every contract in order to reinforce the express covenants or promises of the contract. A lawsuit (or a cause of action) based upon the breach of the covenant may arise when one party to the contract attempts to claim the benefit of a technical excuse for breaching the contract, or when he or she uses specific contractual terms in isolation in order to refuse to perform his or her contractual obligations, despite the general circumstances and understandings between the parties. 
    • The dilatory conduct to delay the completion of the apartments was not in the interest of the buyers and WAS NOT IN GOOD FAITH, but was a malicious scheme by Rahejas to use the buyers money for other purposes. Rahejas have used the money that was paid to them by most buyers in Atharva, Vedanta, and Navodaya by 2011 to divert the money and enrich themselves at the cost of the buyers. 
      • In Atharva there were supposed to be 450 apartments and the builder built 700. The extra 250 apartments that the builder built were cheap because he did not have to purchase any new land for them. The money that Rahejas made at the cost of the buyers in Atharva: At least Rs 250 crores. Similar stunt was pulled off in Navodaya where another complex Sampada was built.
      •  “or Equivalent” Racket. By promising “Hacker or equivalent” kitchen, and then giving poor quality “equivalent” kitchens can save Raheja a lot of money. If buyers were cheated of approx Rs 5 lakhs per apartment then the money that Raheja made at the cost of the buyers: Rs 100 crores. Just imagine you buy 1 kg of onions at the grocer, and when you reach home you find only 100grams of onions – what would you do to the grocer??
      • Escalation costs racket. Rahejas have been holding a sword over the buyers that the escalation costs are Rs 400 psf, “which they are not currently charging.” If they were to do so, the amount of money Rahejas make at the cost of the buyers: Rs 170 crores.
    • There is need for an honorable EXIT POLICY. Rahejas were asked for such a policy in June 2009, after buyers were getting worried and wanted to exit the Vedaanta project, Rahejas would not give the trapped customers an honorable exit, and wrote to the buyers that the installments paid to Rahejas were not a liquid asset and hence they could not be allowed to exit. In the same letter the Rahejas also accepted that they knew and acknowledged “that 80% of the buyers were looking forward to staying in their house in the time to come,” and yet when the time came in April 2011 to deliver, the Rahejas did not deliver. And as the delay continues year after year, with no end in sight, the buyers are being denied even the minimum delay penalty compensation according to the Builder Buyer Agreement  by Rahejas citing Force Majure. What cheats!
Rahejas have denied their buyers an honorable  exit policy, trapping them into an abusive relationship.

Rahejas have denied their buyers an honorable exit policy, trapping them into an abusive relationship.

  • In a case last month at the National Consumer Complaints Redressal Commission, Parsvnath Developers were ordered by http://news.qubrex.com/wp-content/uploads/2015/02/Samay-Par-Flat-Nahin-Diya-Byaj-Sahit-Paisa-Lautao-Dainik-Jagran-02-Feb-2015-510×823.jpg  to return the buyers money with 18% compensation; 10% of which was for interest, and 8% for increased cost of land and cost of construction. This was for buyers who did not want to take possession and just wanted to take their money back. While this judgement applies for buyers who are not interested in taking possession, similar judgments can be expected for people who want to take possession and get higher delay compensation than the peanuts that the Agreement Offers.
The National Consumer Commission ordered Parsvnath to refund the buyers their money with 18% pa compensation - 10% for the interest and 8% for increased cost of materials and labour.

The National Consumer Commission ordered Parsvnath to refund the buyers their money with 18% pa compensation – 10% for the interest and 8% for increased cost of materials and labour.

  •  In many cases due to change in specs, in site layout, in excessive delay, by construction of excessive apartments, by non-development of common and community areas, by encroaching on greens, etc etc the fundamental nature of the good/service called “apartment” has fundamentally changed. The buyers HAVE to be given an EXIT POLICY, and the honorable courts in the matter of Parsvnath and other judgments have been giving just such an option to the aggrieved buyers. The product the buyer was lured with has been changed beyond recognition, to his detriment. The buyer must have the option of refusing to take possession of the apartment and surrendering the apartment to Raheja Developers, and in return Raheja Developers must pay back  all the money at 18% interest from the date it was received by them. Mr Arunesh Madan has filed a case just for that saying he is no longer interested in the flat Raheja Navodaya, as the very purpose for which he purchased the apartment has become moot.
  • The total impact of everyone surrendering the flat would be about Rs 3000 crore. The final compensation amount will depend on how many choose to surrender the flat if given an option. For those not wanting to take possession due to excessive delay or severe deficiency in product/service interest at the rate of eighteen percent (18%) per annum compounded monthly must be paid on the total amount paid by the Allottees to the Opposite Party towards their respective flats, from the dates the installments were received by the builder.
  • Of course, the Rahejas are rich enough to buy back all the apartments if they wanted to. After all they have over 60 million sq.ft in hand, and 900 acres of land in “various stages of deliberation.”

In addition to sufficient compensation for civil and compoundable violations, a case can be made that some realtors like Mr Navin Raheja and his employees should be put in jail if criminal misconduct can be proved against them. It will help the real estate market as a whole recover. The symbolism will be important as Mr Navin Raheja is also the Chairman of NAREDCO, a pressure group of the real estate sector. http://qubrex.com/jail-term-for-navin-raheja-strong-medicine-for-real-estate

Chief Justice of India designate H L Dattu

Honorable Chief Justice of India, Shri HL Dattu has said, If a “common man who steals Rs 10 may be sent to jail for 3 months,” why should the powerful not be punished as severely.

 

 

 

Bittersweet Irony of Raheja & AAP Plays Out in Times of India Newspaper – Raheja Ayana Launches – Feb 11, 2015

Hi,

Yesterdays’s newspaper was bittersweet as the 1st section Frontpage showed Aam Aadmi Party winning, while the 2nd section Frontpage showed the Khaas Aadmi (Raheja Developers) launching yet another new project called Raheja Ayana in Sector 79B, Gurgaon http://epaperbeta.timesofindia.com/index.aspx?EID=31808&dt=20150211#
And pondering over it we realized that this was so because “the only thing necessary for the triumph of evil is for good men to do nothing,” or not do enough.

 

The Times of India 1st Section Front Page – Sweet
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The Times of India 2nd Section Front Page – Bitter
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Even  as hundreds of aggrieved buyers of Raheja Atharva, Vedaanta, & Navodaya are filing cases in National Consumer  Commission (Wng Cdr Alok Verma & 43 Others, then Mukesh Sinha & 41 Others, then Dr Nikhil Raheja & 33  Others, and Amit Saggar  & 64 Others, And Arunesh Madan, and …) Raheja Developers is able to ensnare new customers who are going to face the nightmare that you all have been facing – all because you have not been able to tell your story compellingly. No one told you and so you bought into Rahejas, and now others are not hearing enough from you so they are buying from the Rahejas.
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Your struggle is important, and all those who are seeking relief will get it for sure. After the DLF – CCI case of Belaire and Parkplace, the public is much aware of the false invincibility of the builder mafia-like community. And due to the doggedness of DLF buyers in the past few days 2 more investigations have been ordered into DLF Regal Gardens and Skycourt projects. http://economictimes.indiatimes.com/wealth/real-estate/news/cci-orders-second-probe-against-dlf-finds-prima-facie-abuse-of-dominant-position/articleshow/46187618.cms
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These landmark cases, in addition to numerous cases in the Consumer Courts at district, state, and national level have led to judgments that give succor to the newer buyers. And in the cases that are being filed against Raheja Developers the buyers are benefiting from the precedents set in earlier cases. They  are benefiting from the decision of other buyers who decided to tell their stories, and who fought it out. The real estate market is better for that, but there is still much scope for improvement.
The issues in the cases against Raheja Developers are fundamental and cut across builders and projects. The issues here are very important, and the stakes are very high. But, it seems that your story is not being told well – otherwise how could Raheja Developers launch yet another project and keep ensnaring new buyers into the same false dreams, and promises that we know they have no intention to keep. A case could be made that even the brokers who are pitching it are committing cognizable offences, but none of these seems to have any effect. http://comments.gurgaonscoop.com/2015/01/14/raheja-ayana-gurgaon-insidious-role-of-brokers-in-new-launch-in-sector-79-by-raheja-developers/ And ironically, the same day that the Aam Aadmi juggernaut swept Delhi, the Raheja juggernaut is trudging into launching yet another project – Raheja Ayana.
We believe that the cases against Raheja Developers are very important and are going to be landmarks like the DLF-CCI case, and the story of the issues raised in the cases must be widely told. Also, the story must be told via other platforms – not just in the courts.
Please consider a formal campaign or hiring a PR agency to help, or take on to yourselves to spread the story esp through the social media. Many of you are very articulate, and can manage better than any external agency, and should do so. Else Rahejas will keep launching new projects … and making more people walk on coals of fire, like you are doing so now.
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With warm regards,
Sanjay

 

 

 

Raheja Ayana, COGNIZABLE OFFENCES AS BROKERS MISLEAD BUYERS WITH FALSE PROMISES of Residential Project in Sector 79, Gurgaon by Raheja Developers

संघर्श (Sangharsh) in 3 ACTS

ACT 1: The Real Estate Brokers / Consultants
ACT 2: Performance of Rahejas
ACT 3: The Leadership Problem
ACT(ION) Now

ACT 1: The Real Estate Brokers / Consultants

La Sorogeeka is provinding Interiors in Raheya Ayana. Anjali Goel & her daughter Kashish Goel.

La Sorogeeka is providing Interiors in Raheya Ayana. Owner Anjali Goel & her daughter Kashish Goel.

Cognizable offences are being committed by real estate brokers/consultants as they market the new project by Raheja Developers Ltd. called Raheja Ayana Residences in Sector 79, Gurgaon. The violations are of the Haryana Regulation of Property Dealers And Consultants Act, 2008 and are punishable on first conviction with imprisonment of either description for a term which may extend to six months and with fine which may extend to ten thousand rupees …

Punishment for Property Brokers/ Consultants providing "wrong information at any stage." Imprisonment upto six months, and fine upto Rs 10,000.

Punishment for Property Brokers/ Consultants providing “wrong information at any stage.” Imprisonment upto six months, and fine upto Rs 10,000.

In addition, by providing “wrong information” about the project via email and websites the real estate brokers may also in violation of Section 66A of the Information Technology Act, 2000,  as amended in 2008.

The amount at stake runs into hundreds of crore rupees, and such activities by lazy/compromised property brokmay have serious penal consequences of fines and jail terms. The prospect of complaints are higher now as large number of corporate and organized brokerage houses have now entered the market. Earlier the brokers were small fries and it was not worth filing cases against them, but now just one “Uber” like case can bring these large real estate brokers / consultants to their knees. That is why it is essential to understand the nature of the malpractices in marketing Raheja Ayana.

The brokers providing demonstrably incomplete, false, and wrong information about Raheja Ayana range from equity funded (Proptiger.com by Fox News, Knight Frank IndiaFavista.com, Commonfloor.com, HDFC Realty) to smaller shops like ABC Buildcon, Homeseek Realtors, Shri Balaji Estates, AashirwadMadhyam, Honey Money AssociatesGenXDeals, InvestinNest, Suraj Realtors, and Kalra Realtors. For every buyer that they fish out and bring to Rahejas, they may be getting paid Rs 2-3 lakhs each, but all of them are collectively putting over Rs 250 crore of buyers money at risk. Greed and avarice seems to have prodded many into illegal and unethical acts.

The actions of these brokers is similar to advertising and selling medicines without disclosing the side effects of these medicines being sold. Most people will never read the fine print, but the “side effects” information should NOT be suppressed or withheld, and the price of failure is very high in physical / monetary terms. Just one broker has to lose a case somewhere to one buyer, and hell fires will fall on the remaining. The “wrong information” that these brokers are providing by their lack of due diligence and reckless acts are endangering the entire life savings of some buyers, and polluting the decision making of the costliest purchase many will make in their lifetime by providing wrong information. These real estate brokers/consultants are in violation of the Haryana Regulation of Property Dealers And Consultants Act, 2008  and accordingly the Collector may revoke their licence at any time according to Sections 4(2)(b)  & (d) of the Act. And the punishment according to the Act Section 17(1) “for any person who contravenes any provision of this Act or any rule made thereunder, shall be  punishable on first conviction with  imprisonment of either description for a term which may extend to six months and with a fine which may extend to ten thousand rupees.” (You can see the Regulation of Property Dealers & Consultants Act, 2008 starting from Page 13 in the pdf file here http://revenueharyana.gov.in/html/acts_rules/stampbranch.pdf )

Brokers marketing Raheja Ayana residences are in violation of the Haryana Regulation of Property Dealers And Consultants Act, 2008

Brokers marketing Raheja Ayana residences may be in violation of the Haryana Regulation of Property Dealers And Consultants Act, 2008

Why would these brokers knowingly make false promises, suppress material information, and make promises of future services and specifications that Raheja Developers (aka Standard Farms Pvt Ltd) have never given, and are probably incapable of providing given their track  record of the last 10 years. Are these brokers just lazy, or are they compromised. Based on the performance of Rahejas in ALL projects in Gurgaon, which these brokers are expected to be fully aware of as many of them have sold and earned hefty commissions in those projects too, these brokers are making false promises, hiding information, and covering flaws to persuade buyers to bite with false dreams. Even basic information like the legal cases against Raheja Developers, the poor construction quality in all their projects, cheating where delay compensation is being denied and escalation charges are being threatened, the unilateral changes in site layouts to the detriment of the buyers, where possession is offered to clearly incomplete projects (one of which does not even have an access road as land for the road has not yet been acquired)… all of this is being hidden to trap and ensnare the unsuspecting buyer. Based on the past experience and track record the brokers and buyers can expect failure on all parameters from this new project by Raheja Developers Ltd. The marketing strategy of the brokers is rife with providing wrong information, malpractices, and unfair dealings.

Even troublesome Conflict of Interests are not being properly disclosed by the brokers involved in marketing Raheja Ayana. Rahejas are offering interiors by La Sorogeeka. The firm La Sarogeeka is owned by Anjali Goel, who is the mother of Kashish  Goel,  http://luxpresso.com/photogallery-couture/the-week-in-pictures/10769/8 who happens to be the wife of Nayan Raheja. https://www.youtube.com/user/rahejamedia/search?query=wedding The wedding was 2 years ago on Jan 22, 2013. So, Nayan’s mother-in-law owns the company that is supposed to be providing the furnishings to the buyers, and in this Kahani Jamai-Saas ki will Nayan (and Raheja Developers) be able to protect the interest of buyers in Raheja Ayana, or will he side with his mother-in-law Anjali Goel and further enhance the interests of the Raheja & Goel families.

Wedding videos of Nayan Raheja  & Kashish Goel

Wedding videos of Nayan Raheja & Kashish Goel

The deception by brokers is even to the extent of creating FAKE WEBSITES and FAKE LOCATIONS. Some brokers have even started selling Raheja Ayana with its location as being on the “New Golf Course Road” in Sector 79!! when nothing of this sort exists.

Brokers of Raheja Ayana are even creating fake locations like "New Golf Course Road in Sector 79, Gurgaon - when nothing of this sort exists !!!

Brokers of Raheja Ayana are even creating fake locations like “New Golf Course Road in Sector 79, Gurgaon – when nothing of this sort exists !!!

Some of the brokers have even gone to the extent of creating fake sites (creating http://www.indianrealestateforum.co.in to confuse people with the well known site http://www.indianrealesateforum.com, and creating http://www.indianrealtynews.in to confuse people with the original site http://www.indianrealtynews.com) to promote projects like that of Rahejas Ayana. 

Brokers are even going to the extent of creating FAKE websites of well know names to confuse and cheat buyers. Here is one FAKE copy of IndianRealEstateForum.com

Brokers are even going to the extent of creating FAKE websites of well know names to confuse and cheat buyers. Here is one FAKE copy of IndianRealEstateForum.com

q08 Raheja Fake site IndianRealtyNews

And in this deception they are being officially supported by Raheja Developers and Dimple Bhardwaj, GM, Corp Communications of Raheja Developers has been supporting and promoting these FAKE WEBSITES !! (see here http://fyre.it/oAyV32.4)  What pits the company has fallen into, and yet the brokers are misguiding buyers to fill the coffers of Raheja Developers – what a shame. Look what happened to DLF when it tried to hide adverse actions against a subsidiary of its.http://www.thehindu.com/business/markets/sebi-bars-dlf-six-top-executives-from-markets-for-3-years/article6497041.ece and the crimes of Raheja Developers are much larger …

Dimple Bhardwaj, GM Corp Comm, Raheja Developers is officially supporting the FAKE websites to mislead people about the Raheja Ayana RResidences project in Sector 79, Gurgaon.  What better can you expect from them?

Dimple Bhardwaj, GM Corp Comm, Raheja Developers is officially supporting the FAKE websites to mislead people about the Raheja Ayana Residences project in Sector 79, Gurgaon. What better can you expect from them?

Are brokers acting as sled dogs to the Rahejas and helping sell Raheja Ayana by indulging in malpractices, unfairly suppressing material information, and effectively providing wrong information to the buyers at every stage.

Are brokers acting as sled dogs to the Rahejas and helping sell Raheja Ayana by indulging in malpractices, unfairly suppressing material information, and effectively providing wrong information to the buyers at every stage.

These brokers are acting as sled dogs to the Rahejas and unfairly hiding even such material facts as the avalanche of legal cases against Raheja Developers, and are indulging in malpractices by misguiding buyers about the facts of the cases which are material information for all buyers trying to make an informed decision on whether to buy “Raheja Ayana” or not. If some of these brokers had a spine and had stood by their clients who are stuck in the earlier Raheja projects that the same brokers have sold, and had told Raheja Developers to fix the problems before taking to marketing this new project, the current situation would not have arisen. These brokers are now making the situation worse and trying to entrap buyers in a giant ponzi-like scheme of the Rahejas.

Why should we always look to the past in order to prepare for the future? Because there is nowhere else to look – James Burke

How are brokers supposed to do due diligence. How can they evaluate the product that is going to be delivered 3, 4, maybe 7, 8 or 10 years later. They must look at the PAST and PRESENT to get an idea of the FUTURE. They must look at the physical things that have been delivered, and the abstract commitments that have been kept / broken, and also a psychological profile of the people / company that is making the promises in  the future. Have the brokers considered the following fairly before providing information to their clients?? If  not, it would be indulging in malpractices and unfair dealing.

  • What is the chance that Rahejas will deliver in the promised timeframe?
  • What are the chances that Rahejas will not alter the site layout to the detriment of the buyers?
  • What are the chances that Rahejas will deliver “future of luxury” and not poor quality construction and finishes?
  • What are the chances that there will not be problems in the Club/Community buildings that Supertech is supposed to provide?
  • What are the chances that they buyers will not be cheated with the “equivalent” trap? The brokers pitch for Raheja Ayana promises “Grohe/Kohler/Jaquar equivalent CP Fittings” and  “Kohler equivalent Sanitaryware.”

What due diligence have these brokers done when many of them are probably not even aware of the various issues in the current Raheja projects (Atharva, Navodaya, Vedanta, Sampada, Shilas, Vedas …. ) which have been detailed in the legal documents submitted and incude

  • the buyers being robbed of their major green areas in the complex
  • extra interest  / penalty has been extracted
  • number of flats have been increased with consequent reduction of common /  community areas and facilities
  • towers have been moved and site layout changed to the detriment of the buyers
  • questions of possession and delay compensation stalled for over 4 years
  • huge and baseless ad hoc charges
  • threats of escalation to the tune of approx Rs 400 psf in Raheja Atharva & Raheja Vedanta (Vedaanta) !!
  • and in Raheja Atlantis a Hacker or equivalent kitchen was promised and what was delivered was a shame. Hacker kitchen would have cost Rs 5 lakhs, and what was delivered was hardly worth Rs 50,000. This is how the “equivalent” trap works.
  • Based on the experience of “2nd projects” like Teacher’s Society in Raheja Atlantis, like Shilas in Raheja Atharva, like Sampada in Raheja Navodaya, there were be huge problems in Raheja Ayana as it is the “2nd project” in Supertech Ltd’s project.  What if Supertech fails to provide the Club or Community buildings, or adequate facilites – who will the buyers then knock doors of – Rahejas or Supertech? And Supertech is not a great company; it is the same company whom the honorable High Court has ordered to demolish two 40-storeyed buildings illegally built in its Noida project called Emerald Court.  http://www.business-standard.com/article/companies/allahabad-hc-orders-demolition-of-2-towers-in-supertech-s-project-114041101033_1.html And this Revital Realty -> Supertech -> Standard Farms -> Raheja Developers game of subsidiary/shell/sister companies is shady and dangerous. Who will get the Occupancy Certificate and Completition Certificates? Who will file the Deed of Declaration? Sub-division of a housing licence is illegal, and this whole arrangement does not sound kosher – esp as the Agreement between Supertech & Standard farms is not in the public domain, and where can a potential buyer go to verify independently the documents (that may be fraudulent) in the builders office. Too many questions remain.
Forty three (43) buyers Sue Raheja Developers in National Consumer Commission for Raheja Atharva.

Forty three (43) buyers Sue Raheja Developers in National Consumer Commission for Raheja Atharva.

There must be something severely wrong with the way Rahejas are going about in their projects launched in 2007 (and still not complete in 2015 almost 8 years later). The matter of Raheja Developers complaints and misdeeds is so serious that IN THE RAHEJA ATHARVA PROJECT the Prime Minister of India’s Office has written to the Chief Secretary of Haryana and asked for a report on complaints of Raheja Atharva buyers to be sent to it expeditiously. http://forbesindia.com/article/special/pmo-asks-haryana-to-probe-complaints-against-raheja-developers/39249/1

q08 Raheja Forbes PMO article 2015-01-15_074129

q08 Raheja Panjab Gurgaon Kesri PMO Office letter to Chief Secretary

Panjab Kesri, Gurgaon – Prime Ministers Office Orders Report on complaints against Raheja Developers by the buyers in Raheja Atharva. Navin Raheja is currently launching Raheja Ayana in Sector 79, Gurgaon.

 

q08 raheja Gurgaon Mail - PMO asks haryana for report on complaints

Gurgaon Mail – PMO asks Haryana Chief Secretary for expeditious report on complaints against Raheja Developers. Raheja Developers are currently launching Raheja Ayana in Sector 79, Gurgaon.

Complaints have also been made to the Haryana Chief Minister, to HUDA GRIEVANCE Cell, and Consulate Generals of India in various countries like Australia.

Complaint Against Raheja Developers to the Australian High Commission by Mr Ram Subramanian.

Complaint Against Raheja Developers to the Australian High Commission by Mr Ram Subramanian.

Have these brokers who are pitching these projects even seen any of the existing projects, and their current status, and why would they expect Raheja Ayana to be any better? From a study of the legal documents of Atharva & Vedanta it emerges that the reality is not even close to what Rahejas promises in their brochures, and indeed in the Agreement to Sell. It seems to Mr Raheja that all Agreements are malleable and he has made a mockery of those in Atharva, Vedanta, and Navodaya. His mode of thinking, though not his tools, seem to be similar to that of Mr Ibrahim.

On Agreements: "I have told you in plain words that the writing that you have given me and the writing you have taken frmme, more important than that is you listen and do exactly what I am saying...None of the losses should come on to me... I have a court(s) of my own.

On Agreements: “I have told you in plain words that the writing that you have given me and the writing you have taken from me, more important than that is you listen and do exactly what I am saying…None of the losses should come on to me… I have a court(s) of my own.

See photos where possession has been offered in Raheja Atharva here https://www.facebook.com/media/set/?set=a.693904857373753.1073741827.296742357090007&type=1&l=988e4decc9

How Raheja Developers got Occupancy certificate for an demonstrably incomplete Raheja Athrava is subject matter of complaints to PMO, HUDA, and other grievance platforms.

How Raheja Developers got Occupancy certificate for an demonstrably incomplete Raheja Athrava is subject matter of complaints to PMO, HUDA, and other grievance platforms.

Don’t these brokers know the story of Raheja Atlantis? Don’t they know the story of Raheja Square in Manesar? Don’t they know the story of R-Mall on Sohna Road? Has Raheja ever delivered on his promises? After meetings and meetings in Atlantis, were they able to succeed? Despite all the promises, despite all the letters, despite all the ORDERS … nothing has worked. There is something wrong with the DNA of the company itself, which we will discuss in a little while. First it is very hard to get a commitment, and if you get a commitment it is very hard to get it implemented, and if you can’t get it implemented it is hard to go to a court, and even if you get a court / executive order it is hard to get even that implemented. If Mr Navin Raheja has been holding on to the Chairmanship of NAREDCO for so long, there must be something very different about them. In the Raheja Universe there are infinite slips between the cup and the lips, and never do the twain meet. There is something psychotic which people must become aware of before this whole ship sinks. It is high time that people STOP giving Rahejas the benefit of doubt for their own good, as many have been fooled again and again ….

Fool me once, shame on you. Fool me twice, shame on me.

What gives the brokers so much confidence that Rahejas will deliver, when even slum dwellers of Kathputli Colony seem to be smarter and have refused to buy the Raheja & DDA assurances. They have been shouting loud and clear “Raheja ke Dalaon Ko, Joote Maro Salon Ko.” Some day, the buyers whom they are ensnaring into the Raheja Ayana project may be saying the same.

Raheja Developers in a Rs 1000 crore scam - Residents Shout - "Raheja Ke  Dalaon Ko, Joote Maro Salon Ko.

Raheja Developers in a Rs 1000 crore scam – Residents Shout – “Raheja Ke Dalaon Ko, Joote Maro Salon Ko. https://www.youtube.com/watch?v=OVzVlhjgEEc

 

ACT 2: Performance of Rahejas

If brokers were to peruse the Raheja Atharva petition in National Consumer Commission for detailed description of the problems https://app.box.com/s/of84xzjgfc30z7ntj46m6ip4tugn2uhr and issues raised in Vedaanta Legal notice https://app.box.com/s/dl135c7h7mzx4kyv9f0mk4rr3x4x8alk they would realize that there is almost nothing right, and the Rahejas have literally tried to pull off a highway robbery. 

11 Page Raheja Atharva Petition at the National Consumer Commission

11 Page Raheja Atharva Petition at the National Consumer Commission

9 Page Legal Notice to Raheja Developers from around 100 buyers in Raheja Vedanta (Vedaanta).

9 Page Legal Notice to Raheja Developers from around 100 buyers in Raheja Vedanta (Vedaanta).

It is worthwhile to read the above documents in detail, for they expose the murky workings of this company.

  1. Site layouts have been changed. New towers added. Greens that were shown while launching the project have disappeared. One client from Dubai who had carefully chosen a swimming pool facing apartment, was stunned to find that except for his apartment number everything about the project had been changed. And to his detriment. Where there were supposed to be villas, now towers stood.
  2. Where there were supposed to be approx 450 people living in 15 acres, there was now construction for 700.
  3. The quality of the apartments and their finishing were poor, and they were incomplete. Yet Rahejas had been able to get the Occupancy Certificate (duly signed by Shri Anurag Rastogi, IAS). This has been discussed more in a longer article at http://www.qubrex.com/open-letter-to-housing-minister-about-naredco-chairman-navin-raheja and Rahejas were able to raise the demand from the buyers and also start asking them to start paying maintenance even as the apartments were inhabitable.
  4. None of the facilities were complete and as the legal notice in Vedanta states https://app.box.com/s/dl135c7h7mzx4kyv9f0mk4rr3x4x8alk Following facilities/services are lacking: (a) Swimming Pool (b) Club (c) Incomplete parking area (d) Landscaped area is less than the area originally promised (e) Underground parking originally planned in the sanctioned plans has not been constructed and open parking area has been created compromising on the open parking area originally planned. (f) Internal roads are not complete. (g) The Project is split in two parts with a road cutting dividing the Project into two complexes with their own boundary walls. The inconvenience of the design will compromise the ease of use of club and swimming pool. Allottees in block G, H and I would have to cross the road to access the swimming pool and club situated across the road. (h) Incomplete flats with broken and damaged flooring; (i) Insufficient power load per flat. Load of 6 KW provided for each 4 bed room flat, whereas 5 AC’s have been provided in the each flat.The simultaneous running of 5 AC’s would consume the entire load. No load left for the other appliances; (j) Unfinished construction. Project is still work in progress and is still looks like a construction site and not capable of possession. (k) No permanent water and electricity source. (l) Project is not connected with the sewage system.(m) Raheja Developers has claimed to have obtained fire clearance for the Project. However, no fire safety equipment and alarms are found at the site. Fire hoses and reels and other infrastructure are not installed yet. It is denied that any inspection was carried out by the Fire Department and the fire safety system was tested, since there is no water source at the site. (This fire thing is the same as it happened in Atlantis, and history is repeating in Vedanta.)
  5. They illegally demanded stamp duty (approx 4 to 5 lakhs per apartment) even when they had no intention of getting the Conveyance Deed done expeditiously. Almost 6 months to the date, they have collected stamp duty from many in Raheja Atharva and yet have not gotten a single conveyance deed done. They have demanded the stamp duty charges from Raheja Vedanta buyers also. The Town & Country Planning Department recently clarified that “Colonizers (like Raheja Developers) have collected a huge amount from the buyers on account of registration charges or stamp duty for executing sale deeds of the plots, flats, shops and office spaces in their favour. However, the sale deeds or conveyance deeds have not been registered till date.” http://timesofindia.indiatimes.com/city/chandigarh/Haryana-govt-directs-colonizers-to-execute-sale-conveyance-deeds-in-buyers-favour-in-20-days/articleshow/45926797.cmsThe said that the amount collected by the colonizers had been retained by them in an illegal manner and were using it to their benefit. He further said that in cases where it is not possible to register the documents, the stamp duty collected should immediately be returned with interest to the investors.”
  6. On the delay compensation for having delayed Atharva & Vedanta by over 4 years (ranging about 5 to 7 lakhs per apartment at Rs 7 psf per month) Raheja Developers first kept on stringing the buyers for years with vague wording that they would pay. When the final  demand was raised the turned turtle and refused to pay ANY DELAY COMPENSATION. Their laughable claim is Force Majure. In fact, as Rahejas have intentionally and strategically delayed the project to use the money interest-free elsewhere. This is a cynic interpretation of the Flat Buyers Agreement and against the basic spirit of the Agreement. They thought that the vague language in the Agreement to Sell protected them. That was Rahejas thought process in 2007. Now, after the landmark DLF – CCI Case there is a possibility that Rahejas may have to pay 18% delay compensation (not the paltry 2% or so that is in the Flat Buyers Agreement), and the case of 43 Atharva buyers at the National Consumer Commission has a prayer to the Honorable court for just that.
  7. On top it they started threatening buyers that they could at any later time claim ESCALATION costs to the tune of Rs 400 psf. This is a lie, and the prices according to the CPWD Index actually decreased !!
  8. If hundreds of people had not come together (starting with the first 8 brave buyers in Raheja Atharva), and exchanged notes, done research, and confronted Rahejas… the slimy Rahejas would have extracted/extorted/cheated hundreds of crores from these buyers. At this point with legal and other actions against Raheja Developers there is a glimmer of hope that this loot can be mitigated, but majority have already been looted by the Rahejas. It must be remembered that every Rs 1 lakh that the buyer pays extra to Rahejas, he condemns himself / herself  to pay Rs 1000 every month to the bank for the next 20 years.

Coming back to the Escalation point, where they were threatening that at some later stage the Rahejas could charge Rs 395 psf (or approx Rs 8 lakhs for a 2000 sq.ft apartment) from the buyers, there is an interesting story. We had asked Dimple Bhardwaj, GM, Corporate Lies, of Raheja Developers about the same and she replied that “you may please calculate the escalation and kindly know that they are calculated on basis of committed delivery period.” http://fyre.it/ES9vG3.4

Dimple Bhardwaj, GM, Corporate Lies, Raheja Developers says that they escalation of Rs 395 psf was calculated on the 2011 delivery date, and not 2014/2015.

Dimple Bhardwaj, GM, Corporate Lies, Raheja Developers says that the escalation of Rs 395 psf for apartments was calculated on basis of the 2011 delivery date, and not 2014/2015. Blatant lies.

The lies of Dimple Bhardwaj were nailed by a study of the CPWD indices. You can see the full calculations of individual inputs here, https://app.box.com/s/7ip9xd4g2x32n0mj9bs5kieakomx3ey2 and as can be seen from the chart of overall prices, the index actually dropped !!

Despite the CPWD price index dropping by 8.9 (or 7%), Raheja Developers tried to  charge almost 20% extra (Rs  400 psf escalation on price of apartment approx Rs 2200 psf). How  the crook MD of Raheja Developers still manages to be the Chairman of NAREDCO is amazing.

Despite the CPWD price index dropping by 8.9 (or 7%), Raheja Developers tried to charge almost 20% extra (Rs 400 psf escalation on price of apartment approx Rs 2200 psf). How the crooked MD of Raheja Developers still manages to be the Chairman of NAREDCO is amazing.

Employees like Ms Dimple Bhardwaj, GM, Corp Comm, Raheja Developers have played a very active role in promoting the lies and deception regarding the performance of the builder.

Employees like Ms Dimple Bhardwaj, GM, Corp Comm, Raheja Developers have played a very active role in promoting the lies and deception regarding  performance of the builder Navin Raheja.

 

ACT 3: The Leadership Problem

The employees of Raheja Developers seem to be living in a parallel universe where illusions seem to be as good as reality. They have started believing themselves the lies that were meant to deceive others. The company cannot deliver all that it promises, and the delivery will always fall short by far. Many customers are thankful to accept whatever they get whenever they get it, with little knowledge or courage to demand their rights. And, everyday, Rahejas are able to attract more buyers with their marketing traps because the brokers are silent, and the current buyers are silent, each tied up in their own interests. And Rahejas are making merry in this environment. They have just launched a new project called Raheja Ayana in Sector 79, Gurgaon.

But in danger signs to the company’s health, in severe cognitive dissonance the employees and leadership of Raheja Developers Ltd have started avoiding situations and information that conflicts with their illusions.

The “mindlessly copy-paste expert” Dimple Bhardwaj has been playing to a script about how they are the “most awarded” company and how Mr Navin Raheja can do no wrong. Her answer to every question is copy / paste from a very limited set of “answers”. http://www.livefyre.com/profile/69416268/ And after some time that gets to be rather annonying. It is good to be loyal to a point, but beyond  a certain limit loyalty to an individual starts becoming disloyalty to the organization. And it seems to be the case with Dimple Bhardwaj who seems to have degenerated from being GM of Corporate Communications to GM of Corporate Fabrications.

This bubble-mentality and loss of touch with reality seems to have affected Mr Nayan Raheja too. Nayan is a director in Raheja Developers, and the son of Mr Navin Raheja. Without having delivered a single project successfully in his tenure, he has already started having delusions about what he and his company are.

Nayan Raheja, Director in Raheja Developers, and son of Mr Navin Raheja, talks in a 2013 interview as if his dad  has worked a lot and reached a point where he does not think of the company as a profit making entity.

Nayan Raheja, Director in Raheja Developers, and son of Mr Navin Raheja, talks in a 2013 interview  with NDTV’s Manisha Natrajan as if his dad has worked a lot and reached a point where he does not think of Raheja Developers as a profit making entity. http://www.nayanraheja.com/

In an interview with NDTV Profit’s Manisha Natrajan in 2013 Nayan Raheja started talking as if his father had reached legend status and all of his life’s work was behind him. http://www.ndtv.com/video/player/young-guns-of-real-estate/young-guns-of-real-estate-nayan-raheja-on-joining-family-business/260777 At 7:02 minutes into the interview Nayan says about Mr Navin Raheja, “From my dad’s perspective, he’s worked a lot in his life. He’s, I think already reached a point, he feels that his company should be more as a service to the nation, than more as a profit making entity, or just as a real estate company. He feels that he should be able to provide more and more to the people as much as he can.” What hogwash, and do Nayan Raheja and the rest of the employees in Raheja companies really  believe this? If they do, then they are really living in a bubble, and the company is surely baked.

Then there is Mr Harinder Dhillon, Senior Vice President, Sales and Marketing. He is in a class by himself. In his world things are very different from reality, and by the time people see the cold calculations behind his glasses, the money is gone. For example, compare his description of the Najafgarh “Canal” versus the reality.

  • Najafgarh “Canal” in Harinder Dhillon’s TWISTED WORLD as described in the Veedanta Floors brochure. https://www.box.com/s/n0p56csjfah2f42inf7k “Green Belt & Water Bodies” … “The area surrounding Vedaanta is sheer natural bliss. Very close by is the Najafgarh canal which is a major conclave of migratory birds. The scenic beauty and peace of the area is possibly unmatched in the entire NCR region. It is a scenario in which god’s creation – nature – is in all its glory. At the same time, one is right next door to all worldly pleasures, luxuries and necessities as well. A heady combination !!”
  • Najafgarh “Canal” in REAL WORLD as described in report of TERI (The Energy And Resources Institute). “Approximately 20 major drains find their way into River Yamuna in this stretch, of which the Najafgarh drain alone contributes to more than 50% of the total waste water being discharged into the River Yamuna. Today, the Najafgarh drain is the largest sewage carrying drain of the capital.” http://www.teriin.org/upfiles/projects/ES/ES2002WM62.pdf
In the twisted world of Mr Harinder Dhillon, Senior Vice President, Sales & Marketing, Raheja developers Delhi's largest drain can be described in marketing materials as a paradise-like bird sanctuary to trap buyers.

In the twisted world of Mr Harinder Dhillon, Senior Vice President, Sales & Marketing, Raheja developers Delhi’s largest drain can be described in marketing materials as a paradise-like bird sanctuary to trap buyers.

And then there is Ms Jyoti Anand, Senior Vice President, Customer Relations. Her relations with customers are rife with complaints of stalling, and vague & evasive answers. She had a starring & sparring role with the Atlantis residents on Raheja Developers broken promises on CNBC Awaaz. Her performance has to be seen to be believed; and this is supposed to be the flagship project of Raheja Developers.

 

To one customer based in London Ms Jyoti Anand had promised to give all “super area” calculations on receipt of Occupancy Certificate (OC). After waiting eagerly for months, the OC was finally received (by corrupt practices allege many buyers because the complex is still incomplete and does not even have a road to connect to it) by Rahejas, but the calculations were not given to the customer. Instead, a new date of “on execution of conveyance deed” was given deflecting the issue of providing “super area” calculations many more months down the lane.

Jyoti Anand, Senior Vice President, Customer Relations, Raheja Developers is a black belt expert in providing vague answers, stalling replies, and stringing customers along.

Jyoti Anand, Senior Vice President, Customer Relations, Raheja Developers is a black belt expert in providing vague answers, stalling replies, and stringing customers along.

The problems of the company are apparent, and in a rare Mea Culpa  were acknowledged by Mr Navin Raheja himself in an article “Development authorities breeding ground for corruption” in Business Standard http://www.business-standard.com/article/current-affairs/development-authorities-breeding-ground-for-corruption-114122600022_1.html.

Mr Navin Raheja, Chairman, NAREDCO acknowledges problems with quality of construction and delayed deliveries of projects.

Mr Navin Raheja, Chairman, NAREDCO acknowledges problems with quality of construction and delayed deliveries of projects.

Of more interest is an acknowledgement by a developer “quoted earlier” later in the same article. The developer says, “You can get a floor added to the approved plan, floor area ratio (FAR) wrongly calculated, the leeway to convert parking slots into store rooms or converting green spaces into parking slots-officials either have the power to approve them or just overlook them if you keep them happy. All this happens because our bye-laws have become archaic.” He pointed out that obtaining occupancy and completion certificates is another area where officials of development authorities have chance to cut “deals”.

He pointed out that obtaining occupancy and completion certificates is another area where officials of development authorities have chance to cut "deals".

The “developer quoted earlier”  pointed out that obtaining occupancy and completion certificates is another area where officials of development authorities have chance to cut “deals”.

It has been alleged by many of the buyers that the Occupancy Certificates have been obtained from out-of-the ordinary by Mr Navin Raheja for his projects Raheja Atharva and Raheja Vedaanta (Vedanta). Complaint to the Prime Minister’s Office here https://groups.google.com/forum/?hl=en#!topic/raheja-atharva-owners-association/-WKkZboBCmU and to HUDA Greviance ID 743207 here https://groups.google.com/forum/?hl=en#!topic/raheja-atharva-owners-association/LKgnrKN5Rek

It has been alleged by many buyers that Mr Navin Raheja, who serves in the dual role of NAREDCO Chairman and Raheja Developers Managing Director, has cut "deals" to obtain the Occupancy Certificates for Raheja Atharva & Raheja Vedaanta.

It has been alleged by many buyers that Mr Navin Raheja, who serves in the dual role of NAREDCO Chairman and Raheja Developers Managing Director, has cut “deals” to obtain the Occupancy Certificates for Raheja Atharva & Raheja Vedaanta.

Chief Justice of India designate H L Dattu

What could be the motivation for Mr Navin Raheja to cut a “deal” for the Occupancy Certificates of Raheja Atharva and Raheja Vedaanta when both of the residential projects were demonstrably incomplete. The motivation lies in the fact that “on receipt of Occupancy Certificate,” Raheja Developers could raise the demand for the final 5-10% payment pending, and also Rahejas could start charging maintenance from every apartment owner immediately. The monthly maintenance charges are rather high – Rs 4 psf per month, i.e. for a 2000 sq.f apartment the monthly maintenance charges would be Rs 8000 per month. And the best part is that as the complex is incomplete so most people could not even begin living in it, while Raheja would be minting money. Greed and avarice, personified.

This greedy Mr Navin Raheja is very different from the one that Nayan was describing in his Young Guns of Real Estate” interview as “he feels that his company should be more as a service to the nation, than more as a profit making entity, or just as a real estate company. He feels that he should be able to provide more and more to the people as much as he can.” Why would Mr Navin Raheja want to cheat the very people who trusted him and showered crores of rupees on him, with just the expectation of a decent home from him. Have the buyers asked from Mr Navin / Nayan Raheja anything more than what is fair and just? Then why this betrayal, Mr Rahejas.

How could the Rahejas have betrayed so many, so heartlessly. How did the buyers get reduced from humans to just another source of funds. The answer, we believe, lies in the very core of how Mr Navin Raheja thinks about transactions, and his equation was on display again in a recent show on NDTV about land acquisition. Thankfully, the second guest, Ramesh Sharma, blasts the logic and numbers of Mr Raheja on this show, but mostly on other platforms Mr Navin Raheja gets away with it. http://www.ndtv.com/video/player/property-india/property-india-land-acquisition-ordinance/351881

Mr Navin Raheja on NDTV show on land acquisition justifying sacrificing interests of 1% for the benefit of the remaining. Very slippery and perverted logic that gives an insight into the way Mr Raheja thinks.

Mr Navin Raheja on NDTV show on land acquisition justifying sacrificing interests of 1% for the benefit of the remaining. Very slippery and perverted logic that gives an insight into the way Mr Raheja thinks.

Siding with the land acquirers, Mr Navin Raheja reasoned that for the benefit of 99% of India’s population if the land of the remaining 1% was acquired with/without their consent & adequate compensation, it was okay as 99% of the population was benefiting. It was okay to sacrifice 1% if 99% were benefiting. Right here, in this perverted logic of a psychotic mind lies the clue to the DNA of Raheja Developers, which Mr Raheja has been repeating many times on multiple platforms.

  1. Firstly, 1% looks small, but then the population of India is around 120 crore. So, in absolute numbers it means sacrificing 1.2 crore people. That is 12 million people.
  2. Secondly, what stops Mr Navin Raheja from justifying sacrificing 2% for the benefit of remaining 98%, or sacrificing 3% for the benefit of remaining 97% …. and on till he can justify sacrificing 99% of the people for the benefit of 1% special people like him.

With Mr Raheja’s way of thinking, it is quite possible to justify sacrificing the rights of only a few buyers. On the slippery slope, beyond a certain point, people who think of other people as objects can indulge in very narcissistic and dangerous behaviour. “The dark side of self-obsessed fraudsters is that they see other people as objects,” Ms Frankel is quoted in an article in the Economist on the “Biggest Fraud in History.” http://www.economist.com/news/christmas-specials/21568583-biggest-fraud-history-warning-professional-and-amateur-investors “It is not that they consciously ignore others’ feelings, as selfish people do; rather, others do not figure at all. This is what makes narcissists such as MacGregor really dangerous. He showed no concern for his settlers. They were merely an extra source of funds …”

q08 Raheja Biggest fraud raheja-buyback-MacGregor-image

Raheja Developers Ltd looks at its buyers as just another source of funds, and that probably explains the one-sided and avarice dripping clauses like 3.10 of the Atharva Flat Buyers Agreement, in which Rahejas attempt to keep all land in their projects, except that below the building in which people live (i.e. footprint), in the hands of Mr Raheja forever. This clause also gives him right to any further development in the future as he pleases, whenever he pleases, how-so-ever he pleases. And in Raheja Atlantis, after possession of all towers had been given, Mr Raheja tried to construct another tower which was rebuffed by the residents, then he tried to make a school …. The clause is  https://groups.google.com/forum/?hl=en#!topic/raheja-atharva-owners-association/37zCYwxB4C8

“The Company has made clear to the Allottee(s) that it may be carrying out extensive developmental / construction activities in the future in the entire area falling outside the land beneath the footprint of the said Building, in which his / her Apartment is located and that the Allottee(s) has confirmed that he / she shall not raise any objection or make any claim or default in any payment as and when demanded by the Company on account of inconvenience, if any, which may be suffered by him / her due to such developmental / construction activities or incidental / related activities. It is made clear by the Company and agreed by the Allottee(s) that all the rights including the ownership thereof of land(s), facilities and amenities, areas under stilts and roof top (other than those within the said Building and the land beneath the footprint of the said building only), shall vest solely with the Company and the Company shall have the sole and absolute authority to deal in any manner with such land(s), facilities and amenities…..

Builders like Mr Navin Raheja &  Mr Nayan Raheja have punctured the good feeling of trust & prosperity in real estate grinding the real estate sector to a snail’s pace. The litany of tales of  the buyers is going to get shriller over the coming years as more of their projects like Raheja Navodaya and Sampada come up for possession, and faith in this builder is going to plumb to new lows. Even the plans of their marquee project “Raheja Revanta” have also been changed so much from the originals that they buyers are going to get a 1000 KW shock in the future when they compare the promises to the reality.

The tragedy of Indian real estate is the presence of builders like Raheja Developers in it. There are many builders like Rahejas in the system, many of whom are members of NAREDCO (National Real Estate Development Council), all indulging in activities similar to that of the Rahejas. Jaisa raja, vaisi praja. And the raja (Chairman) of NAREDCO is Mr Navin Raheja.

The time has come for a little cleaning of the system, for a little catharsis in the system, and the cleaning should start with that of the Chairman of NAREDCO, Mr Navin Raheja. The real estate sector has become a den of corruption, and a waste land of broken commitments. A little sacrifice is needed to clean up the system.

ACT(ION) NOW

Let us take Mr Navin Raheja’s idea and apply it to him and Raheja Developers. Let us sacrifice 1% of the people like him for the benefit of remaining 99%. Mr Raheja fully understands the cold calculation and should have no objections. Being a tiger buff Mr Raheja will appreciate that sometimes the hunter becomes the hunted – that is just how the game goes. He demanded sacrifice, and now it is time to demand sacrifice from him, of himself.

And if sacrifice of Mr Raheja is demanded, the buyers must be ready to sacrifice too. Buyers/investors must support lawyers and consumer activists taking on these badmash builders. The legal cases against the company should be taken to their logical conclusion, so that they become precedents for Rahejas, and other developers, in the  future. If buyers in the DLF-CCI case had also made private deals with DLF, thousands of others would not have benefited from the precedent and implications of the Rs 630 crore penalty that was imposed on DLF.

Buyer groups should be be organized to take on the builders, and a knowledge base created so that the wheel is not rediscovered every time, for every builder. Buyer groups should be proactive, and start doing something when the problem is small. Every big problem in the world could have been solved when it was small. If the buyers had done something when the builder was adding new towers, or laying foundations at the wrong places for the existing ones, some of the problems could have been mitigated. The best time for buyers to have done something is years ago, but the second best time is today.

The lazy and/or unscrupulous property brokers /consultants who enable badmash builders like Navin Raheja and Raheja Developers to keep ensnaring fresh catch every day should also be trapped. Please call these  brokers, esp the big corporate types, and record their sales pitch on your phone which can be used as evidence of mis-selling and entrapment. We met the new Commissioner of Police, Gurgaon, Mr Naveep Singh Virk, a few weeks ago and he advised us to use Skype if possible to record the video conversation. He also said that recordings were legal as long as it was done by one of the participants of the conversation, and could be used as supporting evidence in many platforms.  The Delhi Govt & Police are actively soliciting audio / video on their platforms like Whatsapp, and the time has come to use technology to fight the fraudsters in  real estate.

And buyers should ask Mr Navin Raheja to resign from the Chairmanship of NAREDCO.

Please add your comments at the bottom of this article or write to Qubrex@gmail.com.