Sukhraj Nahar’s Amrit Shakti township, Chandivali (Powai) is a landmark in the city, consisting of over 5000 premium quality flats owned by NRIs and wealthy investors. But Nahar Amrit Shakti has a one-way ticket. You can buy a flat from builder S B Nahar… But if you want to sell it and avail of the capital appreciation, he will use unlawful methods to prevent you.
Nahar Group wants total control over sale of flats in Chandivali, and uses tricks, muscle-power and fear psychology to kill the secondary market. By artificially restricting the availability of flats, so that Nahar can sell flats at a hiked-up rate. Sukhraj B Nahar’s rates are astronomical, but without second-sales, buyers have no choice. After buying a flat at Amrit Shakti Powai, residents and investors feel financially and legally crippled by unfavourable terms and conditions.
Estate agents are either threatened to stay away, or they are hired as Nahar’s booking agents who sit in his sales office in Kandivli.
How the Nahar Amrit Shakti fraud is carried out:
On a hill near Powai Lake, a stone’s throw from the Hiranandani neighbourhood, Sukhraj Nahar’s Amrit Shakti looks like a heavenly place to people living outside. Booking a new flat at Nahar’s Amrit Shakti seems like a way to make all your dreams come true. See this sales brochure of Nahar properties: http://tinyurl.com/Nahar-Amrit-Shakti-HDFC-scam
Also see the promotional video of this Chandivali township: http://powai.info/2011/12/14/nahars-amrit-shakti-8-new-towers-promotional-video/
In this gated community, round-the-corner from Powai police station, there is no law. The security men speak politely, but don’t be fooled, they enforce S B Nahar’s law. In this Powai township, you are alone in your fight against the Nahar Builder, his army of uniformed maintenance men and security men, and his friends in the administration and government.
THE LAWS OF NAHAR’S AMRIT SHAKTI PROPERTIES:
1. Pay-and-forget parking. People were promised exclusive closed parking or open parking slots. For these promises, the residents paid amounts over Rs 2.5 lakh per marked parking space 3-4 years ago (although it is illegal to charge for parking spaces, which are non-FSI areas and common amenities belonging to the cooperative society). But these residents are still parking haphazardly in the compounds, wherever the security men tell them to. The ground floor, originally designed for basement or stilt parkings, is being enclosed with walls for sale as luxurious duplex flats in front of the residents’ eyes.
2. Non-existent amenities. People who paid for a 1500 sq. ft house got 750 sq. ft of carpet area (plus balconies shown in the approved plan as flower-beds). Inherent in the price of the flat is the price of club, pool and lavish amenities in their backyard, such as a playground and a modern school etc. All these luxurious amenities promised by the brochure, the video or the sales staff have been “under construction” for over five years now. Without these amenities ready, the builder fraudulently thrusts possession on to the owners at very short notice of a couple of weeks. In this situation, people have no time to think and react properly. They must choose between two bad choices: (a) If they refuse to take possession without those amenities, Nahar terminates their agreement and forfeits their advance amount – usually 20% of the cost. (b) If they take possession, they are bound by a clause in their agreement that they shall not complain about lack of amenities, faulty construction etc. after taking possession.
3. Formation of cooperative society being obstructed. Although many buildings in this township are almost fully occupied (e.g. Tilia-Tulipia, Arum- Allamanda, Iris-Ivy, and Mirabilis-Mimosa), the builder is not fulfilling his legal obligation of calling an AGM, enabling a cooperative society to be formed and handing over the building and amenities. Is it just neglect? No, Nahar threatens those who try to unite and form a cooperative society. On 12th August 2011, some residents managed to unite and organize a morcha against the builder. Within minutes, the local sub-inspector materialized and threatened to impose a curfew on this peaceful gathering. Nahar told the residents that if they formed a society, he would discontinue construction of the amenities that they had already paid for.
4. Encroachment of common space and amenities. Collection of about Rs 5 lakhs from each of the 4,000 residents here, has given S B Nahar about Rs 200 crore of interest-free play money. Nahar is using this play money to build unlawful “duplex” dwelling units on the podium-floors of each building, which are part of the common amenities where the society office and play area were earlier shown. Each of these massive duplexes is an encroachment by the builder, to be sold with a further 2000 square foot fenced backyard – land that is part of the the buildings’ amenities. These grand flats measuring about 4,000 sq. ft. carpet will fetch the builder nothing short of Rs 5 cr. each. A narrow stairway in each of these duplex flats leads to a room on the ground floor, which was sold as common parking. This encroachment would not be possible if a cooperative society took charge of society premises.
5. Illegal 22-storey building on a reservation plot. S B Nahar had promised the residents of Magnolia Enclave & Orchid Enclave – large societies with many buildings – a very big garden and parking area in a reservation plot. But instead, he built a 22-storeyed building named Bluebell on that plot, and started selling the flats. Some courageous members and managed to get a High Court Stay Order on sale of flats in Bluebell. The big question is: why did MCGM not take any action to stop this daylight robbery, which happened during the tenure of Municipal Commissioner Jairaj Phatak and Chief Minister Ashok Chavan?
6. Theft of power and water from completed buildings for under-construction buildings. In May 2011, a major short circuit and fire happened in the meter room of Vinca building. This incident revealed that electricity was directly being tapped from Reliance Energy’s underground cable, and this unauthorized cable was connected to an under-construction building. The fire brigade has not yet issued its report, and Reliance Energy has not pursued the matter further despite follow-up by angry residents. Similarly, the residents of Lilium and Lantana buildings recently discovered that municipal water from their building was being used for the construction work of a neighbouring building, and made a commotion. However, the municipal authorities have not initiated any action. The builder has evidently hushed up the matter with the fire brigade, Reliance Energy officials and MCGM officials. Such theft would not be possible if cooperative societies were in charge.
7. Collection of 18 months maintenance in advance. Nahar Group charges monthly maintenance of about Rs 18,000 per quarter, even if a flat is unoccupied. Residents and investors have to make advance payment for 18 months i.e. Rs. 1.08 lakhs. There is no accountability for this. In one building, Nahar raised a fresh demand within one year, saying that the advance payment was consumed by expenses.
8. Exorbitant transfer fees in return for NOC to sell. Builder Sukhraj B Nahar understands the mentality of his customers. Rather than put up a fight, people generally prefer to sell their house and leave. And that gives him another opportunity to twist their arms. Nahar insists that they should first get his No Objection Certificate (NOC) for selling – which is not required by any rule or law. For giving NOC, he demands a rate of Rs 500 to Rs 1000 per sq. ft. (Super Built Up). On a typical flat admeasuring 1500 sq ft, this means Rs 7.5 to 15 lakhs. He usually collects this amount in cash, but in case someone insists on a cheque payment, Nahar grudgingly permits “voluntary donation” to S B Nahar Charitable Trust. See a specimen here: http://tinyurl.com/SB-Nahar-Charity-Trust-Receipt (This is illegal. A cooperative society can charge a maximum of Rs 25,000 as transfer fees. The builder is actually not authorized to charge transfer fees at all. Even if one assumes that the builder is acting on behalf of the cooperative society that will eventually be formed, he cannot charge more than Rs 25,000.) Even if you wish to give your flat on lease, rent or leave-and-license, the builder insists that you need his NOC, which comes at a heavy price.
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9. Cheating with properties that are already sold. S B Nahar insists that all sales of flats should happen through his sales staff and has set up a broker company called Property Lounge. His staff persuades the seller to hand over the keys to the flat, by promising to sell the flats and remit money to their bank account within 7 days. People don’t hesitate, as this is an accepted practice when one appoints an estate agent. But after that, the seller finds it difficult to get back his own house keys!
10. Cheating investors. About 4 years ago, when the S B Nahar Group announced the bookings of two buildings named Water Lily and White Lily, 700 flats were sold at the rate of Rs 5,500 within 28 days. Surprised at his own success, the builder had second thoughts about his rates. So he called all the investors back, and refunded all the token cheques of Rs 2-3 lakhs each, saying that MCGM had not approved his plans. Three months later, Sukhraj Nahar announced fresh bookings at Rs 9000 and sold all the flats, cheating about 700 investors of their gains.
11. Fraudulently getting Occupation Certificate. MCGM gives occupation certificates (OCs) for Nahar Group’s half-complete buildings. MCGM also lets him change his buildings’ names in the OCs by pen, and backs him up if he is challenged. See these photos taken the backyard of incomplete buildings that were given occupation certificates: http://tinyurl.com/Nahar-Amrit-Shakti-photos
The residents belong to the empowered class of society. These can afford to shell out more than a crore rupees per 2 BHK flat. But they don’t have the temperament to fight a bully builder. The residents of Nahar’s Amrit Shakti properties fear the builder’s uniformed maintenance men and security guards swarming all over the massive compounds. If you are blacklisted by Nahar, you and your family members will find it difficult to enter your own apartment. It is better to buy peace-of-mind by living quietly within your four walls according to the rules that the builder makes for you; such is the mentality.
Many investors are NRIs with no time to wage a legal battle in the Indian courts. They were lured into buying flats at Nahar Amrit Shakti apartment sales, held in property fairs organized by HDFC’s branches abroad in Dubai and London. HDFC (a premium real estate institution whose chairman is industry captain Deepak Parekh, who sits on many government committees) is an exclusive partner in Nahar’s Amrit Shakti project. On page 16 of the Nahar Amrit Shakti brochure (http://tinyurl.com/HDFC-involvement-in-Nahar-Hsg), it clearly states, “Much of Nahar Group’s success can be attributed to HDFC”. Using HDFC’s backing, Nahar claims that he is supported by a couple of dozen other financial institutions as well on the next page. This is misleading.
HDFC’S EXCLUSIVE TIE-UP WITH S B NAHAR:
a) HDFC Bank’s direct loan to Nahar. Onwards from 2005, HDFC has given project finance of several hundred crore rupees to Nahar Group to enable this massive township project to get off the ground. When a flat buyer takes an HDFC home loan for purchase of a flat at Nahar’s Amrit Shakti, HDFC’s loan to the builder gets paid back by borrowers who take a home loan from HDFC. In other words, HDFC acts as if it is a part owner of Nahar Amrit Shakti. Has HDFC considered the conflict of interest such an arrangement suffers? Isn’t HDFC willingly overlooking the builder’s wrongdoings and criminal acts in order to recover its stake in the project?
b) HDFC Realty Ltd is a major estate broker of this Nahar Group venture. HDFC’s estate broking arm HDFC Realty Ltd is actively promoting Nahar Amrit Shakti flats. Fully aware that Sukhraj Nahar imposes illegal transfer charges and indulges in other malpractices, HDFC Realty’s agents keep the buyers in the dark. If you search on HDFC Realty’s website for properties in Powai worth over Rs 1 crore, almost all the search results shown are Nahar properties in Chandivali. (Note: The website shows amenities like “Pool, Children Play Area, Gym, Club house, Jogging Track” — a false claim. Although buyers have been getting possession of their flats since 2008, the clubhouse, jogging tracks etc. remain at a rudimentary stage of construction.)
c) HDFC Bank’s overseas branches display Nahar Amrit Shakti brochures. Thanks to this tie-up, Nahar Group enjoys the brand equity of HDFC. Most NRIs would never have heard of this dubious builder, were it not for HDFC promoting this project all over the world. HDFC is Nahar’s main contact point with unwary investors enthralled by India’s success story.
d) HDFC employees collude with Nahar Group. Those who purchased a flat in Nahar Amrit Shakti with HDFC home loans find that HDFC office staff write letters and emails insisting on Nahar’s NOC for transferring the loan to the buyer’s name. Thus, they knowingly participate in this illegality.
Is this sort of blatant wrongdoing also happening in other massive townships, which are essentially gated communities run by builders rather than cooperative societies? One doesn’t know, because the people who live in gated communities rarely come together to discuss, and builders enjoy a free hand. There are few forums for guiding investors, customers and residents in these respects. Very few estate agents give honest opinions or reviews.
In the case of Nahar’s Amrit Shakti in Powai, we know these things because a few courageous individuals have decided to fight for their rights. If you are one of the victims of this massive scam, which affects over 4,000 families, now is the time to speak up and join the fight for truth and justice.
Warmly,
Krish
98215 88114
thebravepedestrian@gmail.com
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