APPROX 80 CR ATTEMPTED OVERCHARGE BY INDIABULLS REAL ESTATE

H K Gupta, Mumbai

Indiabulls Real Estate had launched PANVEL GREENS project in late 2009. This project has 1BHK, 2BHK, 3BHK and 4BHK apartments. At that time, we had booked 2 BHK apartments. As required by builder, we had given token amount of Rs 1 lac per apartment. Subsequently, company demand 1st EMI of 10 %(less 1 lac token paid). It was paid to Indiabulls. Deal was as under:

• Area for 2BHK--994 S F
• FRC--Rs.20 per floor (starting from 2nd floor)
• Car Park--Rs.1,00,000
• Club House--Rs.1,00,000
• EWS (Electricity etc)--Rs.50 per s f
• MC (Maintenance)--Rs.50 per s f
• Stamp Duty, Registration charges and Applicable Govt taxes extra.
• Saleable area was 994 s f (loading worked out to perhaps approx 23% or so). 
• For certain units of 2 BHK, saleable area was 1043 s f as these flats had higher carpet area. Indiabulls had taken 10% on the basis of above calculation.

We got a letter in writing around Oct/Nov 2010, demanding another 10% as construction has started. This 10% was also paid (which works out to approx 2.60-2.80 lacs depending on apartment, which floor etc)
Now builder inviting us to their Elphinston office for make preparation for agreement which will be registered thereafter. When we met officials of builder, we were told that area of flats has been revised to 1241-1245 s f. As layout of the project has changed and now it is 85 acre project instead of 25 acre project.
We told them that we have no objection to changing layout of project, enlarging size of project. But we cannot pay for 1241-1245 s f unless we are getting proportionately higher carpet area. We were told that carpet area has not increased (may be, may increase by just 2 to 5 s f per apartment due to change in project layout) but they have increased the loading. We told them that they can make fresh booking at whatever saleable area but our area cannot be increased arbitrarily as our deal was for lower area. We had booked when airport proposal was hanging fire. Once, airport proposal has come through, builder is becoming greedy. We feel/estimate that builder must have sold nearly 1500 apartments at earlier/lower saleable area. Now, if they succeed in charging approx 200 s f extra per apartment, they will in total charge for 3 lac s f (without giving extra carpet area). At an average rate of Rs 2500 per s f, they are trying to extract roughly 75 crores.
Also, now they want us to pay Rs 20k as Deposit to Govt for amenities (although we are already paying 50 per s f for MSEB etc), Rs 10k for society formation and Rs 20k for Legal charges. These 3 charges were not there when we booked (u can check from the sheet being email separately). Thus if builder managed to collect 50k per apartment additional from 1500 bookings, builder is trying to mop up another 7.50 crores.
When those who booked flats refusing to accept revised higher area, they are given very rough treatment and clearly told that their booking can be cancelled and they will get refund of their payment (after deducting 5% as cancellation charges). Several investors have already succumbed to threatening tactics (cancellation of booking) of IBReal Estate and have agreed to pay extra. It is really shocking that so-called reputed builders like IBREAL have no qualms of business ethics and have no shame in overcharging their customers. This is article for knowledge and information of valued readers who should be very careful while dealing with IBREAL for buying/booking any property.