The Brave Pedestrian

Mumbai, 13th April, 2018: The MahaRERA order of 5th April is a victory for victims of Bhagtani Serenity, because it grants the reliefs sought by the complainants. It directs JVPD Properties to refund the amounts paid by the complainants towards booking a flat in Serenity, along with interest @ 10.05% and also Rs 20,000/- towards costs. Well hurrah, we got what we asked for. Or did we? Let us think about how things will play out in future. Does anybody believe that complainant Pradeep Badkur (and others like him who will receive similar orders very shortly) will receive the money from Bhagtani? Not likely. Under the current circumstances, it is almost guaranteed that Bhagtani will respond to this order with typical non-compliance. What can the complainant do if Bhagtani does not refund the money? Civil contempt proceedings have to be initiated against JVPD Properties in a civil court.  (Please note, the contempt proceedings will have to be against the company JVPD Propert...

Mumbai, 8th April, 2018: Yes, we are all talking about how the builder who buys Serenity project from Xander Finance (or Debt Recovery Tribunal) should complete the project and give flats to the allottees. But keep in mind that the consideration value of the project will depend on the development potential of the project land. Do we know what its development potential is? Let us first understand the contradictions in our case. According to Diipesh Bhagtani's second affidavit to Bombay High Court, Serenity project has 389 allottees.  However, Bhagtani's declaration to MahaRERA, visible on its website, says something very different. It says that Serenity project has only 86 flats and zero booked apartments i.e. zero allottees. Nobody would accuse Bhagtani of telling the truth, and so such self-contradictions were to be expected. However, these inconsistent figures raise an inconvenient question: Does the project site of Serenity have enough land to acc...

Mumbai, 8th April, 2018: This article is relevant to all home-buyers, although it is written for the 2500-odd victims of Bhagtani builders, i.e. the people who booked flats in Bhagtani Riyo (Mira Road), Sapphire (Dahisar), Serenity (Powai) and Savannah (Kanjurmarg). Bhagtani's victims have no registered agreement of sale; they only have allotment letters that looks like this specimen . Although they have paid well over 20% of flat's consideration value, the builders have deliberately avoided the duty cast upon them by MOFA (Maharashtra Ownership Flats Act) to execute registered sale agreements. Flourishing their allotment letters and a scanty understanding of their legal position, Bhagtani's cheated flat-buyers are approaching various legal forums. Over-dependency on lawyers is making some Bhagtani victims the victims of lawyers also. Due to either mental laziness or a subconscious fear of receiving bad news, people aren't asking the right questions. Some key ...

Mumbai, 31st March, 2018: The Bhagtani family and their henchmen have in-depth understanding of the flaws in our psychology, such as (1) financial illiteracy (2) blind trust in builders (3) habitual distrust of authorities including police (4) reluctance to go to court (5) penny-wise pound-foolishness (6) tendency for needless arguments, gossip-mongering and petty politics (7) herd mentality. Bhagtanis have a decade of experience in exploiting these weaknesses and repeatedly milking the same people over and over again. Bhagtanis have unfailingly made flat-buyers sign legal paperwork that is against their own interests , and make terrible choices that make them feel good in the short run and make them poorer in the long run. Just because Mukesh and Lakshman Bhagtani are absconding and their office is closed, people wrongly believe that Bhagtanis are no longer active. A small and determined band of Bhagtani henchmen are still active, busily laying out their nets for catching the...

Mumbai, 28th March, 2018: It appears on the face of it, that MahaRERA order on Xander's interest in Bhagtani Serenity dated 16th March safeguards the interests of Serenity allottees. Mumbai Mirror interpreted the order in a positive way, and said, "Maharashtra Real Estate Regulatory Authority... ruled that Xander Finance... will have to protect the interests of the home buyers." Is this positive interpretation 100% correct, 50% correct, or only 10% correct? Before we start searching for answers to this question, let us acknowledge the efforts of Trivesh Pooniwala and other Serenity victims, and Adv Tanuj Lodha who ably represents them. This article is not intended to belittle their efforts and achievements; indeed, it is meant to support them in their quest for justice. It appears that on the face of it, RERA judge BD Kapadnis has passed an order in the interests of Serenity allotees. But bear in mind that jo dikhta hai, woh hai nahin, aur jo hai, woh dikhta nah...

Mumbai, 24th March, 2018: Bhagtani Riyo victims' efforts to compel EOW to apply MPID Act got a setback last week as the special judge rejected their application. After initial disappointment, the victims' reaction was: "We must appeal!" But the question arises: Is appealing likely to be fruitful? Let us apply our mind without sentimental attachment to past decisions and actions. First, let us remember why we filed the application under MPID. Why MPID? The full name of MPID Act is "Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act, 1999". It is designed to protect "depositors in financial establishments". We had three challenges: (1) People who paid Bhagtani money are not exactly "depositors". (2) JVPD Properties Pvt Ltd is not exactly a "financial establishment" (3) Section 2(c)(iv)(a) of the MPID Act explicitly excludes "advance against order for goods or services" from ...

Mumbai, 17th March, 2018: Some years ago, you gave Bhagtani lakhs of rupees in exchange for what you thought was a legally - enforceable contract . But is it a contract, or just worthless pieces of paper? Let us take a close look at your transaction. Possession, they say, is nine-tenths of the law , meaning that your ownership of something is easy to maintain if your have possession of it, and difficult when not. When your money was in your own bank account, it was entirely yours. It was your "today-money" . Then you put your money into JVPD Properties, Jaycee Homes or MD Devcon, and thereby renounced your possession and diluted your ownership of the money. In the company accounts, your money became aggregated with other people's and Bhagtani's money. It was treated by Bhagtani family as their own money, to lend or spend as they pleased, without any financial discipline. It flowed into places hard to track, such as unregistered partnerships and proprietorship ac...