Month: December 2017

Mr. Acharya was about to retire from his job after working for an Engineering Firm for almost three decades. They had decided to invest in an apartment and approached a Real Estate Company that had recently put up large hoardings around Bangalore and had advertised in a big way in the leading newspapers. This Agency had retained a leading Actor and celebrity as their Brand Ambassador and were offering attractive returns on their deposits. Many people like Mr. Acharya were lured into investing in the project. However, after putting down a huge amount as the initial deposit, Mr. Acharya did not receive any intimation from the Real Estate Agency.  When he approached their offices, to his dismay he realized that the Real Estate Agency had wound up their business and had fled the scene leaving several investors in the lurch.

These helpless investors have now approached the police to recover their life savings. The professionals at House Warning urge all investors, to check the validity of the Company before investing in these schemes and have the expertise to ascertain whether these Real Estate Companies have the requisite authorization and are not “fly by night” operations set up to dupe the innocent public. 

One of the leading developers announced the development of “an exclusive community offering luxury sky villas to cater to the elite” in an upcoming locality in Bangalore. The proposed project was designed as six imposing tower blocks that offered a panoramic view of the City. As a well-known builder was developing the project, around 200 plus “high net individuals” invested their savings in this project. The plans had received sanction approvals from the City Authorities. The Project was almost completed and many of the apartment owners had started the interior works, when the Government swooped down to claim the property.

According to their reports, the Government had acquired and leased the land to a party for industrial purpose with the aim of generating employment for the local people. The residential apartments that were built on the plot of land was therefore in violation of the City laws and were deemed illegal as they encroached on Government land. Further investigations seemed to point to the fact that the developers had misrepresented the facts before the sanctioning authorities and obtained permission to develop the project.

When the panicked buyers approached the developers, the developers tried to assure them that they planned to file an appeal with the higher court and that the verdict would be in their favor. Unfortunately, the case is now embroiled in the courts and has left the buyers uncertain about their investments.

HAD THE BUYERS BEEN ATTENTIVE AND CONDUCTED A DUE DILLIGENCE INTO THE TITLES AND THE COMPLIANCE, BEFORE INVESTING THEY WOULD NOT HAVE LANDED IN THIS SITUATION…

Senior residents of an upscale apartment complex in Hebbal woke up to a rude shock… The demolition crew was at their gateway to demolish one-block of the apartment units, clubhouse as well as a good part of the common area claiming that the apartment was built on the Raja Kaluve or Storm Water Drain that leads to the lake.
Most of the owners, had bought the homes trusting the reputation of the builder who had furnished them with sanctioned plans, approved documents as well as Occupancy Certificates to support that the project was executed in accordance with the law. Some of the owners had also availed loans from leading banks. In addition, all the owners had been paying property taxes year on year for these units.

The residents of the apartment complex questioned how the authorities could go back on their own clearance certificates. They felt that the authorities should have raised objections before issuing certificates and approving the plans.

Due to the lack of proper maps, the authorities were basing their demolition drive on the 1902 mother document, which were subsequently updated, to revenue maps in 1962! Over the last two decades, Bangalore has experienced unprecedented growth resulting in increased building activity. In some cases, builders have conspired with city authorities to build houses on lakebeds and canals and have sold these units to unsuspecting buyers at exorbitant prices.

Unfortunately, today there is lack of data available in the public domain to confirm encroachments on lakebeds, storm water drains and buffers. It is important for all potential buyers to safeguard their interest and not just rely on assurances and documents supplied by the Builder.

House Warning would like to caution all potential buyers to consult land expert before investing to ensure that the apartment is not located on encroached land!