Mumbai, 30th August, 2017: There's a saying, “Fool me once, shame on you. Fool me twice, shame on me!” This applies to those who sank money into Bhagtani builders’ various real estate projects, and are now struggling to get it back again. During July and August 2017, investors/flat-buyers of Bhagtani builders' properties received letters that gave vague reasons for non-completion of the project, and then said, “we would like to have a meeting with you in person to propose certain options for transferring the investment or for the refund”. These letters, on the letterhead of Jaycee Construction Co, were sent to investors of JVPD Properties, Jaycee Homes, MD Devcon etc.
Here is a specimen of one such letter:
The excuses offered for non-completion of different schemes varied, but the main point was always the same: Come to our office and meet us. It reminds you of those lines from the famous poem: “’Will you walk into my parlour?' said the Spider to the Fly."
People who went to Bhagtani builder’s office for these meetings were presented with two options: either “transfer the investment” to a different real estate project. Alternatively, they were told to simply sign a “cancellation deed” in return for a written promise of refund of their booking amount with 15% interest after a couple of years.
Buyers MUST NOT ACCEPT either of the offers. And here are the reasons why.
The offer to “transfer their investment” to another project ALWAYS, WITHOUT FAIL, REQUIRES THE INVESTOR TO POUR IN MORE OF HIS HARD-EARNED MONEY. Since the market value of the flats being offered in this exchange offer is always more than the value of the flat that they have booked, an investor is always asked to put in another 8-10 lakhs, if not more.
Please think clearly: If your original investment with Bhagtani builder is already at risk of becoming a bad-debt, why should you give even more money to the same builder? Or even to a different builder associated with him?
Bhagtani’s smooth-talking office staff is full of tricks to convince gullible investors. Some investors of Bhagtani Savannah have been offered exchange flats in Bhagtani Sapphire; meanwhile, investors of Sapphire were told to transfer their investment to Savannah! How does that make sense? If investors say they have lost faith in this builder's projects, they are given the alternative of transferring their investment to projects of other builders. The catch is, you will always have to put in a lot of more money, and of course, you will have to sign the builder's Cancellation Deed.
CLICK HERE to read a Cancellation Deed. Reasons why buyers must not sign the Cancellation Deed are elaborated in this article.
In a nutshell, Cancellation Deed is full of clauses that make the flat-purchaser return all their original documents (especially allotment letter and receipts), and give a clean chit to the builder. Signing the cancellation deed amounts to giving up your legal rights for going to court against this builder, who has cheated you and pocketed your life savings -- typically ranging between Rupees eight lakhs to Rs 70 lakhs. It also makes you pledge not to file a complaint or write anything against the builder in the media or social media forums.
Over 2,000 buyers and investors are currently trying to recover their money, with or without the 15% interest promised to them. Even those who are willing to let go of the 15% interest are getting only empty promises and cheques that bounce; they are not getting their money back. After hearing dozens of explanations and excuses from the builder’s sales office, people have lost all hope that these real estate projects will be completed. Various lame stories (change of laws, RERA, DC Rules, Development Plans, etc.) are given by the office staff for the non-completion of Bhagtani Sapphire (Dahisar East), Bhagtani Serenity and Bhagtani Krishaang (Powai), Bhagtani Riyo (Mira Road), Bhagtani Savannah (Kanjurmarg East) and Executive (Ghatkopar West). All the stories may sound very convincing when you hear them from the well-trained sales staff, and it sounds even more convincing when Dipesh or Mukesh Bhagtani tell it.
But whatever be the story, and whoever tells you that story, don't be fooled by the same builder twice! Otherwise, shame on you!
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