Fraud practices by builders in Bangalore

 Posted by on August 16, 2012
Aug 162012
 

1. Try buying a flat in any premium builder apartment (ready to move in or already given possession), you will find number of agents who try selling the flat. It is sad that we won’t find a single owner directly who can sell. These flats wont be registered in the owners name even after 1 year.
I had such kind of experience with Sobha Chrysanthemum.
There are more than 1 ,2 or more agents involved in these scams for selling a single flat along with the builder.
Once we finalize a flat, The agent will connect to a bigger agent (claiming to be the owner of the flat). These biggies will take loan from some private banks.
If the deal goes through , These big agents pays around Rs. 150-200 per sq ft to the builder . So for a 1700 sq ft flat, for supporting such practices , builder gets a token money of 3-4 lakhs easily (the buyer is paying indirectly again)

2. Try negotiating , these small agents tell “No flats are available below 80 lakhs in this area, we cant sell below it”. Bloody fellows , who are they to fix the prices. I have the right to negotiate with the flat owner directly. Take the 1% commission and just leave the scene

3. When these builder launches any project, they have tie ups with these big real estate fellows, so that they block some of the flats at launch price itself to show ARTIFICIAL DEMAND. And keep on raising prices as per the number of bookings done. Imagne Sobha city, Do you think anyone will pay for showing class discrimination inside a project. Initial 4 buildings are low cost, then the high class villas and then super luxury flats. Why should I pay 1 crore and then live like a low class inside this Sobha City. For outside world “yes” I live in Sobha City , but we should have some respect inside the building premises.

Finally the person who needs a accommodation in Bangalore , he usually pays a huge premium on these flats . Imagine our hard earned money is feeding so many real estate agents. We work hard , pay off these huge loans and these people enjoy.

Buyers , please dont blindly fall for these people. We are educated enough, think before you invest in any real estate . Prices wont sky rocket within 6 months in any city. I don’t think now a days anybody is even buying flats . Don’t fall for these mal practices.
They will tell that 3-4 people are already eyeing this flat. These are all simply to create a sense of urgency . Don’t fall in these traps.
I have written because I faced such problem, other builders will also be doing the same. Now a days , in no mood to buy a house in Bangalore. I think housing bubble will burst anytime soon here, because the end users are very few. We will be paying loan amount for a house which will become more than 1.2 crore (including the interest rate) and the flat prices wont increase so much in near future. .Just try to sell , these agents will tell you that prices have come down to 65-70 lakhs . Try and see.

Pay more than 1 crore for a flat where a basic necessity like Cauvery water is not provided. Then why to spend so much in a city like Bangalore. Ground water level has reached below 1000 feet, which is not at all potable in most of these areas. Yes , pay for quality construction but who will fulfill the basic needs ?

  163 Responses to “Fraud practices by builders in Bangalore”

  1. we are planning to buy 2bhk flat in bangalore. please sujjest trusted contrctor names. all big constructors constructs g+14 or more. we r looking for g+8 even less like g+5. please sujjest

  2. Hello –

    I am planning to book a flat in Spectra Palmwoods, Whitefield Bangalore area; Anyone has any experience with this builder – “Spectra”

    They have a couple of other flats built in Whitefield area namely Spectra Cypress, so just wanted to get a comfort feel before booking.

    Thanks,

  3. VARS builders ARE CHEATERS!!!
    We booked one 2BHK in their on going project and then when we cancelled it due to one of the clause in agreement, which was not suitable to us… they refused to return the booking amount.
    After numerous calls, they are now saying that they will return the booking amount only when the mentioned flat will be sold to someone else. This was never mentioned to us. Never verbally or in agreement. We are still waiting for our money back..
    BEWARE OF VARS !!!!

  4. Based on reviews, value for money, no grave challenges while handing over the property, Sobha will be your best choice. Heres why

    Inspired by the architecture and lifestyles of the sunny Mediterranean, Sobha City will comprise exquisitely built row houses and luxury apartments. Every amenity that makes life richer, more relaxing and more rewarding, will be at hand… set in acres of greenery, dotted with fountains, pebbled pathways and charming water bodies.

    Add to that, an immaculately designed, 600 meter central spine that leads all the way up to a majestic and imposing arch. The arch itself is part of the opulent, 60,000 sq. ft. club house, the centerpiece of this Mediterranean paradise.

    Sobha City. 36 acres of pristine, luxurious and international-style living. Created by the only backward integrated realty company in India, so you get impeccable quality. No less.

    • @venubangaloria : Wow right out of the Shobha City brochure. Would have been such an easy copy paste job for you. At least could have changed the “tense”.

      Can you explain what does “mediterranean” mean?

      Btw, you mentioned no “grave” challenges but looks like conveniently forgot to mention that it is close to “graveyard”.

    • I am an individual buyer and don’t have anything against Sobha but I think as part of honest disclosure Sobha should tell buyers that a crematory is next to one side of Sobha city, some of the buyers know about it but we have had to trawl internet and conduct site visits to find that out.

      • All developers are here to make money from the middle class people. never ever try buying property now…hold your investments..we cannot put our life long savings

        do not trust anyone

 Leave a Reply

(required)

(required)

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>