It was a few months back that the local and national media was abuzz with the Kerala real estate fraud. As usual, the buzz died in its infancy and those who lost money continued to suffer. Although the main builder in news was 'Apple-A-Day', there were many more that were either intentionally cheating their clients or got caught up in this frenzy and went down.
"It's for realising the dream of owning a house in one's native place that NRIs like me invested over Rs. 45 lakh each in the project. But even after 5 years, nothing has been completed," said R P Abdul Hameed, a victim.
It was during this time that one of Hubby’s friends in his late 30’s was admitted in the hospital due to a mild heart attack. In fact, Hubby was totally unaware of it until this friend called him and told him about it. This friend used to come home mostly during the weekends to chat with Hubby and to exchange movies that they download over the net. He seemed to be a perfectly healthy chap and used to tell us that he walked daily and was maintaining his health thus. But when this heart attack came up unexpectedly, I did mention to Hubby that it could be because of some shock; maybe the real estate fraud? Finally he came after a long trip to Kerala where he got a thorough check up and medical advice. We broached the subject of the fraud and then it came tumbling out. Yes, even he is one of the victim. But though he did not say that this is the reason for the attack, I continue to suspect so. This builder is a famous cine artist in Kerala and hence our friend had no reason to suspect him, but the apartment complex was not completed even after 4 years. And more over, the construction has now been completely stopped in the original place and the reason the builder is giving is some union/labour issue. The investors are being promised of the project at a different location but not the money they invested. This friend is yet to sign the new contract.
Here in Kuwait, the builders from India make their yearly visit with the aid of a few sponsors (mainly private banks) and catch the willing clients.
I am sure there are many more such victims here in Kuwait itself and most of them are keeping quiet out of shame or since they feel that it is a lost cause. But is it really so? A colleague’s friend faced the same problem but since the victims united and filed a case in the consumer court, the builder was forced to complete the project and also pay compensation for the lost time. The financial compensation was calculated by the rent amount for the said period.
But as seen on the facebook group for “apple a day” victims, they seem to be still grappling with it. The latest news is that the builders have been granted bail.
In Kuwait, there are hundreds of associations but I am yet to see even one for such reasons. Today the local online portal for Indians too, mentions about the “usefulness” of these associations.
I think associations can be put to use very well and one way could be a resident association comprising of the future tenants, from the start of the project itself. Something similar seems to be a success and you can see it for yourself here.
In GVK’s words,
We have common concerns, and there is much that can be done if we discuss issues, share info. and come up with ideas that could make life and living on OMR a shade better than we now find it.
Taken from one of the blog post…
Mantri, good or bad, it's my money, its my HOME and I will do whatever it takes along with the help of all our neighbours to make this place a good, up-class and liveable place. That is the mantra for the residents who have moved in till now and that is what was decided even in our last meeting.
Anyway, now that people are more cautious about real estate, something else seems to be on the horizon; the kuries. While the kuries have been in Kerala since ages and some may be indeed trustworthy, the frequent, pesky, senseless advertisements on TV seems to be pointing towards yet another scam/fraud waiting to unfold for the Keralites.
property frauds are very common,and common people are always the victim, its time we devised a system to save them
ReplyDeletewhat is there to be ashamed of?
ReplyDeleteWhy is being duped considered as being "accused" of ?
Psyches such as these encourage such scams because the winner is encouraged by peoples silence and will always continue the game in a different place, name and product.
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ReplyDeleteRenu: Yes.. we need stricter laws so that the investor is protected...
ReplyDeleteAnrosh: glad to have you back...
Yes.. one need not be ashamed since it is only human to trust another... but the victims needs to speak out so that the next one warned and a collective action can bring better justice
Hello Kitten,
ReplyDeleteThanks for the post.
I grew up in mumbai and had seen some similar realty frauds in close vicinity to my residence. Infact mumbai being quite infamous for such deals. Dubious builders, some money to be paid in black during purchases, illegal building on land.
Part of the problem is that although there is consumer court to seek for redressal of grievances; what we lack is a good regulator for real estate to stop such frauds from happening. WE have regulator for all different sections telecom, securities, banking etc. but one asset which has the maximum investment of the common man property has gone untouched without any surveillance.
We consumers should take part of blame as we donot try to get enough information on the property/ developer when we try to buy it. Let alone the process of simple vetting of our agreement with a lawyer; we ourselves donot go through the documents scrupulously and try to understand it.
To some extent, there has been some activism by buyer's associations to fight such malpractices together which has been the only encouraging point.
- deeps
Thanks for posting this article. I never knew this until reading it. I can share it with my friends who might have a chance to be victims of the fraud.
ReplyDeleteAs you said people might be suffering the loss but never let the others know their pasting.
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ReplyDeleteDeeps: Yes.. such scams are all over India and as you said, there is no regulator to curb such scams. If many fall for such gimmicks out of greed, or to park their ill gotten wealth, there are many others who lose their hard earned money. And yes, it is time these investors sought more information, took the help of lawyers etc before handing over their money. But I see that no lessons are being learned.
ReplyDeleteAbhi: Yes, there are many who prefer to remain anon, while hoping that they will get their money back.. but unless there are stricter laws and sterner punishments, nothing will happen. Even in the case of Apple a day, they have been given bail. The CM was very enthusiastic initially but with the current circus in Kerala politics, I wonder if the investors shall ever get their money back.