How Lodha Group exploits flat-buyers with crooked Terms & Conditions -- Case Study #1

Mumbai, 27 April, 2018: Here is a live example of how Lodha Group traps unwary flat-purchasers by imposing unfair terms and conditions. Kavita Shinde booked flat no. A401 in Casa Treetop in Lodha Upper Thane, located on Mumbai-Nashik Highway, and has been receiving extortionate demand letters to pay late-fees for a delay in payment, although she had not delayed any payment. 

Kavita booked her flat on 11th May, 2017 by paying Rs 90,000/-, and followed this up by paying Rs 3.17 lakhs on 5th June, 2017. As per the application form, the next "milestone" was executing the registered agreement. The third installment could become payable only after the registration.

Example of  Lodha Group's payment schedule, mentioned in the
Application Form. Quite often, these schedules mention
strict deadlines such as 45 days between consecutive payments.

Lodha Group delayed the registration until November. And then, just as Kavita was preparing to pay her next installment, she was surprised to receive a demand letter seeking late fees of Rs 40,000/- for delayed payment from July!

Such demand letters plainly show that
Lodha Group does not honour its customers
but treats them like slaves!

At first, Kavita thought that this was a genuine misunderstanding and tried to sort it out by communicating with the sales office and customer relations desk. But, despite all her communications, the customer relations desk continued sending her repeated demand letters. Only then did Kavita realize that this was a deliberate action, and not a misunderstanding.

Issue no. 1: Even while verbally accepting the delay from their side in registration of agreement, Lodha Group's office insist on payment of late fees first. They argue that the late fees may be adjusted later if their higher-ups permit. Kavita realizes that if she pays first, she will be at the mercy of Lodha Group. "Why should I pay late fees?" asks Kavita. "The registration delay was from their end! Whenever I called to enquire, they said they were waiting for some approval." But if she doesn't pay late fees soon, Lodha Group threatens to cancel her booking and forfeit her booking amount!

Issue no. 2: Kavita feels that she was overcharged. The rate that she paid was Rs 10,000/- per square foot, based on the market rate in Thane. However, the so-called Upper Thane project is located in Bhiwandi district, where the market rate is Rs 7,000/- per square foot. 

Issue no. 3: Despite false assurances by the sales team, Kavita hasn't till date received a xerox copy of the Application Form that she signed. Without a copy, she is unable to independently refer to the terms and conditions that the Lodha Group is holding her hostage to! (To understand how Lodha's onerous application forms are like traps for customers, read this article.)
 

Issue no. 4: Lodha Group is very eager that a loan company should start paying the installments, rather than Kavita herself. But Kavita is afraid of landing up in situations like this one, where a Lodha Aqua buyer was compelled to pay late fees due to the loan company's unwillingness to disburse loan installments without commensurate progress in construction.

As the higher-ups of Lodha Group cannot be approached by flat-buyers like Kavita, she struggles helplessly with sales managers, customer relations managers, etc, who keep passing the buck to their superiors.

Even in the post-RERA era, Lodha Group continues to follow rampant malpractices and unfair trade practices. Will flat-buyers like Kavita Shinde get justice?

ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

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Other articles on Lodha Group

1) Lodha Group is defrauding flat buyers in Carpet Area

2) Lodha Fiorenza – Misleading RERA, Blindfolding Flat Buyers

3) How Lodha Group's "Application Form" Traps Unwary Customers

4) Measure your flat, Lodha Group has cheated you

5) Warning! Lodha Flat Buyers may face Income Tax Nightmare