Tuesday, 19 August 2014

Don't trust these Builders - Ajmera Realty, Sheetal Infra, V M Procon Pvt Ltd.

About Builders


Ajmera Realty and Infra India Ltd is Mumbai based one of the leading builder also listed on BSE and NSE, for more details http://www.ajmera.com/

Their logo tag line says Build on trust, but you should not trust these guys at all as they are as notorious as other small builders, don't go by their size, name or assume being a listed company they will be good. Read this story and you will realise why i am saying so.


Sheetal Infrastructure Pvt Ltd is Ahmedabad based builder active since last 7-10 years. The mission statement on their site talks about Integrity, but these guys don't hesitate to make false promises at time of sale also they don't deliver what they promise.





V M Procon Pvt Ltd is 50-50 Joint Venture between Ajmera and Sheetal Infra doing few residential projects in Ahmedabad. One of their residential project where i had my bad experience is "Enigma-Fragrance of life" at Ahmadabad.


Broken Promises


 1. I negotiated the basic cost of the property based on SQFT price including taxes but excluding miscellaneous cost (electricity, water, gas etc) and Stamp Duty + Registration. However they are now refusing to accept that the base cost include the taxes such as Service Tax & VAT. 





2. Also they (Mr Bhavesh Joshi & Sandeep Prajapati) mentioned that they would be providing AUDA club member ship which is just in front of the property. The reason given by Mr Bhavesh Joshi during my initial discussion with him at HDFC Realty show in London was that considering we have such a fantastics sport facility including Gym, Swimming pool etc just opposite to our property we decided not built our own gym and swimming pool and instead provide a AUDA membership. The same argument was also repeated by Mr Sandeep Prajapati

Sandeep Prajapati has left V M Procon and joined as Marketing & Business Development
executive at Shree Balaji Group in Ahmedabad. For Sandeep's google+ profile click here

As per Mr Kiran Joshi the sales rep who replaced Sandeep and Bhavesh Patel Sales Manager of Enigma, the current status of the above promise (Jul-2014) is that they will not be providing any AUDA membership, they in fact refuse to accept above words made by their colleagues in past. They will be providing a Gym facility just like most of the small scale builders in A'bad who build a small gym in parking area by putting glass wall between RCC pillars and may put 2 treadmills, 2 cycles and some weight machine and will call it state of the art gym facility. 2 treadmills between 200 families isn't it a Joke? 

I saw such useless gym facility at many of the Property site in A'bad when i was doing research in Jul/Aug-2013, was thinking Ajmera would be concerned about their Brand being a listed company but unfortunately I was horribly wrong.

In 2012 Annual Report of Ajmera Realty they talk about providing Gym and Swimming pool at Enigma, the current reality is there will not be any Swimming Pool at Enigma. The below picture taken from Page 32, last para on left column.

http://www.aril.co.in/download/annual-report-march-2012.pdf

3. At the time of booking in Aug-2013, they promised to handover the Flat's possession by Jan-2014. It's Aug-2014 now and they're still not ready to provide a possession except for interior work also they yet get the building use permission from Ahmedabad Municipal Corporation (AMC). 

References

1. Enigma Sales deed document Sample, you must read this before purchase and you will realise it's completely in builder's favour. 
2. Annual Report of Ajmera Realty, 2012, 2013
3. Financial, Annual Report and other public documents of Ajmera Realty are here.
4. Environment clearance for Enigma Fragrance of Life at Ahmedabad, it talks about 172 residential flats while i think there will be 192 flats at Enigma, 4 towers of 12 story, having 4 flats on each floor.
5. ICRA rating for V M Procon debt instrument is graded as BB, see this doc from ICRA.
6. If you unable to access any of the above links you can find those same original documents here on google drive.

In absence of Real Estate Regulator and Ombudsman Authority, you should be really extra careful while dealing with any Indian builders, Big or Small doesn't matter. However if more people could start sharing their experience on Social Media, days are not far when these builders would fall in line or Indian Govt will put their act together and put some neutral regulatory body in place to safeguard the consumer's interest.



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