Tuesday, December 02, 2008

Palace property sold for 6,000cr

I always thought the Palace Grounds was owned by the government. Mr Wodeyar should thank his fore-fathers for his golden spoon. Wish is everyone was so lucky :)

Palace property sold for 6,000crBY R. JAYAPRAKASHBENGALURUArticle Rank I Wodeyar has sold prime land in Palace Grounds to a city-based developer I ‘ Many high profile realtors were interested in the deal ‘ but in the end leading developer Dayanand Pai struck the dealIt is disputed land but already been sold for Rs 6,000 crore. In the biggest land deal that Bengaluru has seen so far, some 250 acres of prime land in the heart of the city in Palace Grounds, has been sold to a leading city-based developer Dayanand Pai.The state government and the scion of the Mysore royal family Srikantadatta Narasimharaja Wodeyar are shadow-boxing in the Supreme Court over rights to the property.The deal has been brokered by a godman, who is close to both the politicians and the maharaja.A team of chartered accountants drafted the sale agreement that will be executed after the court case is resolved.Highly placed sources said the Maharaja had received Rs 1,000 crore as advance and the money has been deposited in the Bank of Mauritius in an escrow account. “Mr Wodeyar is earning close to a crore as interest on the advance money. He will receive the balance after the legal hur dles are cleared. Many high profile realtors were interested in the deal but in the end Dayanand Pai struck the deal as he was confident of getting the papers cleared.Of the 250 acres belonging to the Wodeyar family, 50 per cent is for outright sale and the remaining land will be developed on a joint venture basis by Mr Wode yar and the buyer. The plans include developing an IT Park, setting up malls and multiplexes,” sources said.A city-based BJP Cabinet rank minister has offered to resolve the issue.“In 1998, Mr Wodeyar had filed an application to conduct events at the Palace Ground which was turned down by the then state government. Following this, he moved the court and got a stay order on the Bangalore Acquisition and Transfer Act which was moved by the state government in 1997. The minister is working on dropping the case by the government. Another possibility being worked out is to grant the land in lieu of some other property which is also contested by the state and Mr Wodeyar. The high profile minister has resolved many such cases in the past. Looking at his track record, things look positive for the Wodeyars,” sources added.Princesses Meenakshi Devi, Kamakshi Devi, Indirakshi Devi, Vishalakshi Devi and the late Gayatri Devi, have about 28 acres of land each apart from the major chunk of land that belongs to Mr Wodeyar.


Anonymous said...

"The plans include developing an IT Park, setting up malls and multiplexes." High Profile Realtors seem to be living in fool's paradise.

by downturn, Wipro keeps 9,800 freshers waiting

"Of the total 13,500 campus offerings made across the country last year, we have taken 3,700 of them so far, while the remaining (9,800) have been told to wait for their turn to join,"

Anonymous said...

Some of the fools live only for today and think that the markets will never go up.

Good, fools like you'll are our customers at a later date to book our profits.

Keep scaring the forum finally when things will look up I will be able to sell my stuff to people like you.

I am prety confident about this maybe some pundits will think otherwise.

India will only grow and correction is needed for healthy growth, wake up and trust yourself and your country.

Wait for single digit loan scenario and see where the markets moves.

I must say people who are deferring their decision despite 30% fall are people with guts.

All the best to all you gutsy guys.


Bindas Bhai

Anonymous said...

Given the Mumbai carnage the term Bhai is extremely insensitive and disrespectful. Being a Don is no longer sexy, given that mr D now has a warrant issued to his name and many others are on the run. Its time you reconsidered a different name, maybe Bindas Moron

Anonymous said...

Just yesterday I have finalised a deal. The crook builder was quoting 14k per sq ft @ Ville parle east. Now I have brought the same property at 10500.

I dont know how the market will move but I have seen value and I have brought it.


Anonymous said...

Appreciate if you could give us the building name/road in vileparle so that we can verify your claim independently.Also, I am curious that you are reading the blog, though you have finalized a deal.

Shailesh said...

This is crazy. The kings that ruled india for centuries should not get to benefit 1000's of crores.

I think market has taken care of prices anyway. This builder buying 6000 cr land need his head examined.

Shailesh said...

Realty dawns on builders; property rates down by 20%

After months of obstinately holding on to their sky-high rates despite a realty slump, several developers have finally started slashing their rates up to 20%.

property sales transactions in the realty market are next to nil. While several developers are keeping up with their pretence of their projects being unaffected by the market crash, rates for the same are brought down by 10% to 20% during across the table negotiations.

A developer selling second homes at Karjat is so anxious to find buyers that he is willing to offer 1,200 to 1,600 sq ft bungalows at Rs 26 lakh each. Brokers have been promised a Rs 4 lakh commission. This would mean a 15% brokerage in a market where the norm is usually a brokerage of 1%.

Observer said...

I am beginning to think that in India, real estate is a better investment than stocks. Why? Because India is a socialist country still. The Commerce Minister Kamal Nath is openly saying that companies should sacrifice profits rather than cut jobs.

Now, as an investor, why would I want to invest in Indian companies if profits are sacrificed and businesses are even encouraged to go into losses to preserve jobs? Why should I throw my hard earned money away?

This leaves real estate as the only vehicle in India to invest in, since the corporate bond market is tiny. Investing in stocks abroad is also another option. Politicians never talk about bringing down land prices since they are the ones holding a significant amount in benaami accounts. So, I think the way forward is to wait until land prices correct, and then buy land.

Why buy land instead of apartments? That is because land can be converted to build either affordable housing projects (those costing 10 lakhs etc), or premium apartments, which cost 50+L, or even huge standalone houses for rich people. Since it is hard to predict which types of apartments will have buyers in the future, it is better, I feel, to hold land directly.

I am really disappointed that in India business is still considered a dirty word. When MNCs realize they cannot be flexible about staffing during recessions, they will just stop coming here.

Anonymous said...

My dear observer,
No matter what the minister says. If these companies have to survive, they have to do layoffs or be out of business fast. So no one can prevent layoffs.

As regards to real estate, it takes time to go down. It could be 3-4 years till you see the bottom. But it would go down easily by 50-60%. And Sensex below 5000.

In US people who got tempted by 2007 prices as compared to 2006 prices, are foreclosing in 2008.

Basically, one should look at what a stock or RE is worth and not what it was selling for.

Also, ignore Bindaas as he seems pretty frustrated in his language. He may soon need a real job.

Anonymous said...

The New York Times article.
Trickles to India

Anonymous said...

Dear Observer,

Dont but land now wait for some more time maybe six months or a year and you will a good deal. Land from the first owner is always cheap because he might have brought land in Paises and not rupees.

Trust me you are on the right track but just be careful with the documents. Working Individual must buy NA, developed land and kindly get all the documents vetted before buying.

Pls. also ensure that the property which you are buying has good future potentail and within five kms radius from the city limits.

I totally agree with you on Apartment. Only if you need for actual use and you are getting minimum 30% from the current rate do not touch it.

All the best!!

Bindas Bhai.

Anonymous said...

Identify yourself with your phone number/email I will call/write to u . How can you expect me to give you the details when your are speaking as Anonymous.


Observer said...

Bindas Bhai,

The reason for buying land, rather than apartments is due to the following stories on the R2IClub from Pune. This is true of other cities as well. The reason for this is that most builders in India are unprofessional, and the quality of construction is quite shoddy. Also, followup by builders is quite poor and defects are not rectified. It is an endless series of headaches unless one buys property from a very reputed builder, in which case the prices are also extremely high and unaffordable to most investors. I believe if there is one moderate earthquake, 80% of the newly constructed apartments will suffer major structural damage and be dangerous to live in.

At least land is a better investment, even though there is a very high potential for fraud, and it requires an enormous effort to ensure that the investment is sanctioned and legitimate. Fixed deposits are best, though they may not beat inflation. Stocks in India are overvalued because the companies are restricted from proper functioning by political manipulation during economic changes. India is a socialist country, and shareholder's interests come last. Investing in India is truly hell.

Observer said...

Scary Story 1 : Magarpatta City

Let's start with my favourite story. Magarpatta city. After all, they were featured on Discovery channel, right?

Imagine: your master bedroom dipped in 3 inches of human extract, your valuable laptops swimming in it, your expensive business suites plus saries soaked in it, your dear paintings plus gifts drowned in it. The extract is flowing up to the passage and stinking as it stinks. [Replace `it' by "SHIT" (read again) for a better picture of your imagination]

Simple case: Out of home for a week. Worst thing you can think of after returning: House full of shit (not literally - actually) Findings: WC pipe clogged up in down stream and ignored by maintenance staff. End situation: human extract `flooding' your house in
first floor.

Sounds like a bad dream? This can come true, if you purchase a house in magarpatta city. Yes, I have purchased a house in magarpatta city and experienced the worst of my imagination. My parents shocked at the sight of house full of shit. My 5-year-old nephew coming from US - half fainted. My wife horrified and unable to digest what she is seeing is true.

And the `best' worst part - Magarpatta PMS staff is unmoved by the happenings and provide no cooperation to clean up the shit or remove the WC clogging.Infact when we finally managed to get a maid to clean the mess, these people warned her of horrible situation and as a result she refused.

Please take a note of "quotable" quotes from Senior Magarpatta authority
- "First floor main aisa hota hee rahta hain"
- Beware if you are taking house on first floor, could turn out to be worst mistake

- "If you would have been at home, this wouldnt have happened"
- Guys, be always at home and keep watching the level in WC pipe.

This was not the end of the trauma we had gone through. After umpteen requests and threatening, it took more than 10 days for someone to come to our house, admit mistake and say a simple sorry for it. We had expected a better and timely response to it and would have prefered settling it there. We are completely broken by the lack of response from them after loosing emotionally and financially. However with the kind of indifference and apathy, magarpatta authorities have shown, We are contemplating action in consumer court.

Observer said...

Scary Story 2 : Purple Properties (Park Street, Rhythm)

I am owner of a bunglow in Five Gardens, which I had booked last
Novemeber - there was no other good scheme in this area and I opted for
Five Gardens due to lack of choice.
I have had a very bad experience with the Pride and Purple Properties -
here is my experience in a nutshell:
Seepage issue: My brand new house had huge seepage issues during this
season's rains. There was virtually no wall that was dry, literally
every wall had signs of seepage. Numerous houses in the Five Gardens
society had seepage problems, the residents created an uproar, and
finally they got a water proofing person to fix it. This person did a
cheap-and-dirty job and the seepage reappeared during more rains. The
residents created a hungama, and finally, the builder deputed a
professional water proofing agency to fix the issue. Bad Quality: After getting possession of the house, I witnessed a lot of
quality issues in the house which I promptly communicated to the
builder. Since the builder is busy building other bunglows, my problems
were not getting attention.

Observer said...

Scary Story 7 : Surya Developers

Posted on Wed Apr 25, 2007 at 06:40:05 AM EST
I would like to bring you people aware of M/S Surya Developers. Please beware of these cheats.

The firm Surya Developers opeartes from a place called as ghargare residency off karve Road - behind kasat sadi center. It is operated by 3 fellows namely Sandeep Koyte, Rahul Kadam, Abhijeet Shah.

These guys are new comers to the construction industry - they do not know any thing about building and construction. Let me share something about them. Their only project in Pune is Blossom-N-Springs on Baner Pashan link Road.

1. While booking flats these guys are very sweet and soft spoken but once you are stuck in an agreement, this start falling out of place.
2. I had booked a flat in their new buildings at 1700/- but the builder didn't get any approval from the corporation for the construction. When he got approval, the rates were already 3200/- in the area. So these crooks forcefully cancelled almost all the bookings that were done earlier and are now selling the same at 3200/- and above. No integrity at all. Totally dishonest.

Observer said...

Scary Story 10 : Wonder Properties (Wonder Futura)

Wonder Properties are an absolutely unreliable developers. Their earlier projects wonder city and wonder futura are examples which clearly indicate that wonder properties provides extremely poor quality construction, projects get delayed by years and never go to the completion as advertised. I talked to my friend who stays at wonder futura and came to know that everyone who bought a home there is totally unhappy. The buildings which were promised an e-lifestyle with lots of hi-fi and wi-fi kind of things, are missing basic life essential requirements would suggest new buyers to keep away from this "WONDER" .
And still if you want to confirm what I am saying please visit the Wonder Futura site which was supposed to be completed by March 2006. The wonder futura project phase one is opposite to the Wonder Funkey, 1.5 km from chandani chowk, on Mumbai-Banglore highway, towards Banglore.

Observer said...

Scary Story 11 : Kumar Builders


We are the residents of Kumar Suraksha, a housing society created by Kumar Builders. The residents have been facing numerous problems and have tried to bring this to the the notice of the builders on numerous occassions. Unfortunately the builder feels that he has no obligation towards this project any more. Attempts by the managing committee to meet Lalit Kumar Jain, the CMD of Kumar Builders, have been thwarted by his staff, surely on his behest. Over a year has passed and most residents have not been handed their possession certificates. The promised PMC water is a distant mirage. Promised amenities have not been provided. Deterioration of the buildings has already started and the engineers at site turn a deaf ear to the pleas of the hapless residents. This especially from the President of the builders association of pune is shameful.

* Managing Committee, Kumar Suraksha Housing Society, Pune.
* Also Reported in the Readers Grievance of the Times of India in June 1st week, 2006.

Reply 1

Kumar Sophronia is also going into same line. The project is already being delayed a lot. One of the building doesn't have even elevators till now. people are staying in the same building on 8th floor.

deaf ears and blind eyes of Kumar builders doesn't hear or see anything what people are suffering staying in this unfortunate project. So guy be aware that Big Name are always not good like Kumar Builders.

Observer said...

Scary Story 12 : Siddhivinayak Ginger


This review is suitable for all who are looking for property in Pune and Chinchwad area. I have bought a flat in Pimple Saudagar in Siddhivinayak Ginger. The site is developed and marketed by Siddhivinayak and Namrata developers. The staff at the marketting office is very helpful, atleast till you have bought a flat with them. The first two buildings A1 and A2 are of better quality than A3 A4 and A5 buildings. Many flats of A1and A2 have already developed cracks and water seepage problem.

The internal doorframes are so substandard that they are coming apart. Some of the flat owners had to replace the latches provided for the mail doors. Mr. Sakla in person promised that he will repair all the defetcs within the flats but that day is yet to come. It was promised that the A3 onward buildings will be provided with 2 lifts per wing but this remained as an unfulfilled promise. Even after handing over the flats to owner in end of 2005, the common amenities like Garden, community hall, gymnasium are nowhere to completion.

And by the way, here is this cheat's website: http://www.sgworld.in/residential.htm
See how beautifully he has cheated residents: http://www.sgworld.in/Ginger.htm

Anonymous said...

Dear Observer,

Sorry to hear about your story, I guess 90%+ of builders are big frauds in India.

In Maharashtra the policy clearly states that you can approach the court and the builder has to repair free of cost for first three years after possesion. I know it is easier said then done, just thought you can scare the builder that you will go to the court. I would suggest have a collectively approach along with other society members.

I know the quality of construction is pathetic but sadly we have very limited choice. BTW pls. check Panchshil properties in Pune much better then others. They are the guys who have build ICC towers near Chaturshinge Temple (near Pune university.)

Land is a safe bet and you will get it a a good vaue if you wait for sometime. Pls. go to specalist lawyer who deals mostly in Land and other property matters.

Pune will really grow in comming times, already I have seen lot of changes in last three years and will continue to do so. FSI in pune is only one and hence the downfall maybe limited.

All the best.

Bindas Bhai

Observer said...

For literally hundreds of horror stories please visit the following forum:


Even Brigade Constructions has problems lately as we saw, when their under construction floor slabs collapsed. Every builder is probably cutting costs now by using substandard materials and shoddy construction to deliver the project. They will put a nice coat of paint and add some decorations and some landscaping at the time of handing over the flat. The first heavy rains will expose all the problems.

This is the reason that buying apartments at this time just does not make sense. Resale apartments, which are more than 3 years old may be a better option, since at least cracks and seepage and other problems will be known by that time. Given the stressful jobs that most professionals lead nowadays, who has time to keep running after these guys to recover the money or fix the defects?

In India quality of everything is suspect, as is to be expected of a third-world country with poor law-and-order. Even if one files a case against the builder, one will die of old age before anything happens. And with some lower-class builders, they may employ goons to shut you up if you complain too much.

Maybe the best option is to buy some land somewhere, and rent for the working life. At least if there are problems with the apartment, one can move somewhere else instead of being stuck dealing with all the problems. And when one retires, one can construct something simple on the land purchased, that will be within the technological capabilities of the average mason, a single story traditional house for example. Unless the skillset of Indian labor improves, making something fancy may only invite more problems.

Shailesh said...

Bindas Bhai: FSI in pune is only one and hence the downfall maybe limited.

So, Bindas Bhai finally aggrees that there will be downfall.

Anonymous said...

On one hand you complain about high prices from reputed builders and on the other hand poor quality from less reputed builders. Obviously when you are buying from less reputed builder at less price. You are compromising quality by paying less to shady builders.
General rule of thumb in life is you get what you pay for (generally if comparable things are cheaper, they are cheaper for a reason). I personally think that paying little extra for already constructed flats from reputed builders will be well worth the price.
As for earthquake, always remember what happened in Ahmedabad, when all the buildings came down like deck of cards and builders left the country in fear of a backlash. Delhi/NCR is Zone 4 (Zone 5 is highest).

In the end either buy land little far from city and build on your own. Forget the appreciation, you will hardly sell it if you live in it. If you want to buy flats buy it from reputed builders and pay for it.

Anonymous said...

!! WAKE UP !!

My friend is real state agent since last 10 years and he says he has never seen a month like december. There are virtually no en quires and lots of sellers are calling for new buyers but there aren't any buyers at these prices. Dude, my broker friend is my childhood friends, why will he lie with me?

I can confirm this for COLABA WORLI, BANDRA, ANDHERI.

Nobody is saying prices of house in mumbai will not go up but prices are already on top now and they must fall by 40% atleast before going up again. It has always been like that and it will be like that this time as well. Mumbai prices may double then current rate but that will not happen before 2020.


Anonymous said...

Mumbai Realty Market `Completely Quiet' After Attacks (Update1)


Dec. 4 (Bloomberg) -- India's worst terrorist attack in 15 years has caused Mumbai's property market, already faltering in a slowing economy, to grind to a halt.

``The market's gone completely quiet,'' said Shiv Kumar Dembla, a property broker who owns Shiv Real Estate Consultants in Mumbai. ``The future doesn't look bright either. The last six months were quiet, but now it could get worse.''

The city's home sales dropped 21 percent in the seven months to Oct. 31, according to estimates from UBS AG. That was before terrorists held south Mumbai under siege for almost 60 hours, with attacks on luxury hotels, a railway station and a Jewish center leaving more than 195 people dead last week.

Terrorists targeted the foreigners who helped make Mumbai the world's second-most expensive city for offices last year, as companies including Macquarie Group Ltd. and Barclays Plc sought space in India's financial capital. Now, apartment buyers are walking away and developers may be forced to shelve projects as companies rethink the risks of doing business in India, brokers and analysts said.


please read full article at bloomberg.com.

Bindas Bhai, search for new job, clearly your speculation job for builders lobby is not working and people are throwing stones at you here.


Anonymous said...

Here is link to bloomberg article.

Mumbai Realty Market `Completely Quiet' After Attacks (Update1)

Sorry did not new, how to link before. :)


Anonymous said...

Speculators who helped creating this real estate balloon are in a major soup and are going to pay a heavy price for the greed.

20-30% sell-off in mkts in few months: Shankar Sharma

"From the middle of December the markets will begin to go back into the realization that this quarter will be an absolute washout quarter for any company anywhere in the world. So, whether you take a company in technology or in retail or a company in metals or infrastructure or automobiles or anything almost across the board you will see completely washed out earnings."

of illiquid scrips swells

"According to the Bombay Stock Exchange (BSE), out of the total 4,700 companies listed on the bourse, 40 per cent, or 1,824 companies, are illiquid counters. On the National Stock Exchange (NSE), 30 per cent, or 395, of over 1,200 companies have been classified as illiquid."

Anonymous said...

Speculators Quit as Lending Drought Bursts Desert Bubble

Dec. 4 (Bloomberg) -- The classified ads in Dubai read like an obituary for a real-estate market that until a few months ago seemed immune from the global credit crisis.

Anonymous said...


Good prediction about 2020. Please grow up we expect some maturity from this forum.

Maharashtra Govt is likely to announce removal of stamp duty for low cost housing. Centre is likely to announce subsidy for loan below 30L.

Pal this move will give some breathing to the builder lobby, time alone will tell when the markets will crash.

Where ever there are mountain, valley will obvisiouly be there. We have yet to know the hight of the mountain. It could a temporary slid or have we reached the peak of this cycle only time can tell.

Fear is keeping away the customer and not demand or money. Offcourse some anount of money is sucked out from the system and is bound to come back in comming times.

Let us wait and watch!!!

Bindas Bhai

Anonymous said...

Here is an intersting link on price trend guys.


Raj said...

Anonymous 9.04

Same person advertising over and over again. Fantastic deal. Is there any reason why flats in this project are not selling? Looks something is missing or someone is playing mischief

Anonymous said...


My HSBC banker just called and informed me that they are no longer ready to land me 1 cr loan as previously promised, instead they will only land 50 lakhs (50% down in just 6 months). Just 6 months back he approved loan for 1 caror but now only 50-60 lakhs maximum. He said bank has now tightened credit policy and there will be very less number of loans issued in 2009 due to huge increase in defaulting loans expected in 2009 and increase in non performing assist of bank.

There is no credit in the market, how the hell people can buy flats?

btw, your comments about carorpati people not posting on forums and blogs, you are simply stupid and hold no water in other people's mind when you type such stupid messages. I can show you many many BMW and MERC owner in mumbai, posting every day in forums and discussing things to get more accurate picture of what is going on.

Its because of some bastard and selfish people like YOU, our country is not progressing. People like you are big stain on our nation, who keep consumer and average user disguise and in the dark and want to keep them away from real picture, so that some selfish rich ass builders can loot money from consumer pocket, no matter why there is so disparency in India between rich and poor people, rich people are getting richer and poor people are getting poorer (btw, I am from cream population of India).

Get mature and stop typing rubbish to keep prices high for your real state employers.

Bindas Bahi.

Anonymous said...

From suchetadalal.com:

Realty, Get Real

A Goldman Sachs’s report predicting that India’s property market is “poised for a deep correction” has finally shaken up realty czars. Goldman says that it expects a drop of 30% from current levels, while many banks and lending institutions believe that prices need to drop a minimum of 50% or more. In fact, some numbers quoted by bankers suggest that Goldman is being optimistic. The developers, who had watched with glee as property prices soared over 200% in the past five years, have mixed views. Several companies such as DLF, Purvankara, Sobha and Hiranandani still refuse to recognise that the market for super-expensive properties has vanished. On the other hand, those under pressure to meet payment obligations, such as Unitech and Orbit, are acting quickly and slashing prices to negotiate deals before things worsen. Unitech is selling assets to reduce outstanding debt estimated at Rs8,200 crore. Orbit, which made news with its plan to price its flats at a tony Malabar Hill project at a phenomenal Rs100,000 per sq ft, has dropped its prices to Rs35,000, but buyers are still haggling for a further cut and are willing to pay only on project completion, says a top banker. He also says that newly constructed malls in Mumbai’s suburbs are finding no takers even after a 30% price cut. The worst hit, apparently, are those who borrowed heavily to create fresh land banks at peak prices. These properties will neither find buyers nor see any development when on-going construction even on mega projects has come to a dead halt.
Goldman’s research makes two significant points in connection with the previous realty slump that began in 1996 after yet another bubble. It points out that prices dropped 40% over three years – developers who believe that bad times will end in 12 to 15 months need to take note. It also points out that prices did not recover to their previous peaks for the next decade. This time, however, Goldman believes that the ongoing infrastructure demand and favourable demographics may lead to a faster turnaround. That remains to be seen.

Bajrangi said...

Goldman Sachs is a corrupt organization and this report does not have any logical explanation. Banks must have paid a fee to publish this report. Most people in India believe in reports published by companies with foreign names, the reason being foreigners are above corruption.

The clear picture of real estate will only emerge after the elections.

Anonymous said...

Shenanigan of a greedy bank is being exposed.

ICICI home loans of 20 and below cheaper

Re: ICICI is going to be bankrupt
by Vinod Somani on Dec 07, 2008 02:01 AM Permalink
Dear Mr. Kamath, Just read this news....."ICICI has revised interest rate by 1.5 per cent from 13 per cent to 11.5 percent for new home loans".
You have to tell me what more you know about the new customers than the old (loyal) customers that the new customers are eligible for a rate of 150 bps less. This is the HIGHEST level of DISHONESTY that ICICI has been displaying. This is not for the first time that you have shown this behaviour. Your bank has earned a bad name for this continued dishonesty in the name of RBI guidelines and market conditions. There are thousands of vulnerable customers like me who have taken home loan from your treacherous bank and now find themselves deceived because of your looting attitude. You say that you will wait until Jan'09 for any rate cut. Did you ever wait to increase the rate for even 2 weeks whenever RBI increased the CRR? If RBI increased the CRR by 0.25%, you increased your rate by 1.00%. You never missed a single opportunity to loot the customers. Now, it has been 2-3 months that RBI has reduced CRR by 3.50%. People, who are giving their hard-earned money towards your soaring EMIs, have already realized your FRR concepts. Your bank will sink sooner than later.
I would advise all the ICICI home loan customers to transfer their loan to Bank of Baroda which has a rate of 9.75% only (w.e.f. Nov'08). And file a PIL against ICICI in the court to waive off the foreclosure charges for deceiving us.

Anonymous said...

Dear Anon above:
ICICI bank is in the business of making money and not doing charity. It is doing what all US and EU banks did i.e.: do the maximum to increase profitability in way that they can get away with it legally. For them humans are just business focals with no emotions or logic attached.

Anonymous said...

After variable, fixed pay being cut

“Surabhi Mathur Gandhi, general manager (permanent staffing) at staffing company TeamLease Services, says some players are slicing fixed pay to the tune of 7-20% so the take-homes are going down....Lakshmikanth says even the innovative strategies employed by companies such as IT majors Infosys and Satyam of giving employees the choice of going on sabbatical have the same motive - reducing the fixed pay burden. He says that is one option others could also explore.”

Govt announces stimulus package to boost economy

“As part of efforts to boost the housing sector, the public sector banks would shortly announce a package for home loan borrowers in two categories -- up to Rs 5 lakh and between Rs 5-20 lakh, the statement said, adding that additional measures would be taken, as necessary, to promote an accelerated growth trajectory.”

We hope the builders who were pinning their hopes on their friends to suck more money from the gullible buyers are reading the above news. The recent measures by the RBI, Government will not help easing the burden of the existing home owners who are paying hefty EMIs. So in the face of monthly reduction is fixed & variable salary components, shadowy tweaking in the home ( HOME LOAN BETWEEN RS 5-20 LAKH) loan rate, there is only way in the future for the real estate prices and it is towards south.

There is race between the industries and government for applying every trick in the book for reducing urchasing/consumption capacity of the consumer.

Shailesh said...

Reaction to India Stimulus plan by RE Shills

Pradeep Jain of Parswanath Developers said, “I am completely disappointed, we were expecting much more.” “This package, he said, “gives only eyewash to the real estate sector.”

Jain feels the package is talking about PSU banks announcing upto Rs 5-20 lakh, which can be done by dropping the rate of interest in the tune of about 7-8%. He said, ”We were expecting higher because at this point of time the sector under fire. The real estate is the growth engine of the country and they are talking only upto 5–20 lakh. The input costs and taxes are too much in this point of time, what ever property we sell, out of Re 1, 0.34 paisa goes in the government’s pocket on account of direct or indirect taxes. So, I am completely disappointed.

Jain added, “Nothing is available in Rs 20 lakh in tier I or tier II cities, and what the government wants to tell to the public to create demand in the housing sector we are developing the economical weaker section. There is no support to the real estate developer as well as to the home buyer.”

That basically says, RE builders are not interested in building for masses who can only afford upto 20 lakh for houses.

Anonymous said...

After reading the bailout news in US & Europe, Indian real estate companies also begged to govt. for bailout package. But in US & Europe govt. has not bailout any real estate company. When the builders failed to swindle the buyers now they playing another game to loot taxpayers money. Previously they used to swindle only home buyers when home buyers are not there; they are planning to swindle every tax payer. Each tax payer should raise voice against such unscrupulous plan of builders+govt.

Is this govt. is going to bailout to default home owners? who has lost job or got salary cut. If people are loosing job in construction industry, govt. should start some more infrastructure projects so the laid off workforce will get absorbed in new projects & will act as stimulus to economy. Instead of doing this they are only helping their friends & relatives who want to make exorbitant profit.

Guys, as promised earlier, don’t be impatient, let it fall then only pick up, minimum 50% price cut is guaranty. The 50% is the Jan-2008 price which was peak price.

Today’s strategy :
In the current bearish market you can make money by short selling realty & banking stocks. Real estate companies has publicly accepted about the weakness in sector & based on govt. direction banks are extending the lending to this weak sector.

Bhai, you are right current is only a slid, it has to go further into deep, then come out of deep to start rise. Currently it is not even at bottom so stop the non- sense of rise.

Bajrangi are a genius from Alibaugh? What kind of analysis you did?


Anonymous said...

This time there is going to be no recovery. It is not a "v" or "U" shaped graph in the next 7-8 years but an "L" shaped graph. Hence, just a downfall upto 80% of peak prices in high bubble area like Bangalore, Mumbai, Pune, Delhi and Gurgaon/Noida, Chandigarh etc.

Anonymous said...

It is just matter of time we will all come to know. You and me cannot predict the market it is pure economics between supply and demand and offcourse the price.

We will have to wait and watch but it looks like people sitting on the fence will start buying no sooner the banks lower the interest rates.

June 09 will tell us where the market is heading for, meanwhile we all can only speculate.

I still feel that there wont be crash as we all expect.

Bindas Bhai

Anonymous said...

More layoffs are coming in the US. AFter around 20 lac people losing jobs in the last few months, which is the official figure. Unofficially the losses are like 50lac people jobless.

What I'm trying to say is US consumers drive the world economy and with that going away, the world would suffer. I'm not worried about house prices falling anymore as they would by 70-80% over a few years, but sustainability of life. What would happen to my job in India and what would happen when I'll so many jobless smart people sitting at home. The Indian economy may tank at that point. Houses would be available and there would be no buyers at any price as no one would have the money.

Anonymous said...

Let us wait and watch what happens to Indian economy and how much we are affected.

Bindas Bhai

Anonymous said...

I think there is a high probability of depression in 2010 or 2011. If that happens the whole world will be affected and it would be worthwhile to hang to every paise you have. Because, you may lose jobs, the credit cards may not work, there might be runaway inflation and then deflation and finally the economy in India too might head to 2-3% growth or even 1%. At that time all this debate would be meaningless, houses will be worth practically nothing. Home prices might crash 99%..Think about it.

Anonymous said...

I am planning to buy a flat in the Wanwadi/NIM Road area.. recommendations welcome. Also, what are the rates I should expect?

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