ENCROACHMENT – RAJA KALUVE – LAKES – LENDERS ESCAPED


The owners who have bought the apartments and sites in and around raja kaluve and the lakes have borrowed money from BANKS.  In many cases, the banks have evaluated the projects and in some cases had issued pre approval to the projects which are under investigation and demolition.

Majority of the buyers are borrowers and if the banks had conducted due diligent enquiry, it would not be possible, legally, to the banks to finance illegal buildings with violation and deviation.  But, they overlooked and DUG THE GRAVE FOR THE BUYERS OF THE PROPERTIES.

None of the affected owners have sued or instituted legal proceedings against the banks and officials. Why?

The NOTORIOUS LENDER has obtained an AFFIDAVIT from the borrower, which contains  a declaration made by the borrower that the property titles are good and it has been constructed as per the sanctioned plan.  In the event, if there is any deviation or violation from the sanctioned building plan, the BANK RESERVES THE RIGHT TO RECALL THE LOAN and initiate appropriate proceedings against the borrower.

The borrower/owner, who has signed the loan agreement without even reading one word thinking that the SANCTION OF BANK LOAN means, perfect title.  IT IS NOT SO.

75% of the apartments, houses and sites have not been constructed or formed as per the law and as per the sanctioned plan, but HOME LOANS have been sanctioned by the BANKS.  How?

Banks have also engaged in TAX EVASION AND ARE ABETTING TAX EVASION, which is under investigation.

 

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THE REALITY OF THE REALTY MARKET


The real estate market is reeling under abnormal pressure due to NON-SALE, UNSOLD INVENTORY OR STOCK, DOWNWARD PRICE TREND, HIGH LABOUR COST, HIGH LAND COST AND ABOVE ALL , THE NEW LAW AND MOUNTING INTEREST.

Many of the builders will GO with the NEW LAW and few might remain.

The builders/sellers and brokers are creating artificial demand with different type of marketing technique and offering all kinds of baits to the buyers.

It is learnt that the banks, of late, in the last three months are feeling the default of the EMI and may soon begin the SEIZURE OF PROPERTIES OR ATTACH THE PROPERTIES IN coming months.

The builders are left of huge unsold stocks of apartments, but, they are clever liers, always boasting that all their projects are SOLD.

The reality is different in this sector.  

Unlimited lies.

Worst Quality.

Worst products.

Dangerous designs or structures.

Abnormal pricing.

Cheating by charging abnormal BESCOM and BWSSB Deposits.

VAT collected but not paid to Government and in many cases VAT is collected over and above the due amount.

SERVICE TAX collected and some of them have never paid it.

ARREARS OF TAXES is on the head of most of the builders.

All these factors will affect the buyers or the consumers.

 

FREE-FREE- BUYING AN APARTMENT OR A SITE – OFFERS FROM ?????????????????????????


BUYING AN APARTMENT OR A SITE FROM A BUILDER / DEVELOPER AND THERE ARE MANY FREE GIFTS!!!!

CLUB HOUSE-FREE

MEMBERSHIP-FREE

BANK LOAN ARRANGEMENT-FREE

REGISTRATION-FREE

DEAR BUYERS,

USE COMMON SENSE AND THINK, HOW CAN THESE PROFIT MAKERS OR THE COMPANIES OFFER ANYTHING FREE FOR A STRANGE BUYER?

IS IT POSSIBLE TO CREATE SOME CONCRETE THING OR SUBJECT FROM VACUUM?

THE LOUSY CLUB MEMBERSHIP IS NOTHING BUT A “WASTE”.

BANK LOANS ARRANGEMENT IS FREE, BECAUSE THESE CRIMINALS HAVE TIE UP WITH THE BANKING CRIMINALS.  

THE  BUYER FOOLISHLY AND SHEEPISHLY SIGNS ALL THE MORTGAGE AND LOAN DOCUMENTS AND GETS TRAPPED INTO THE DEBT`S VICIOUS CYCLE. NARAKA ON EARTH.

THE BUYER IS CHARGED.  THE BUYER WITHOUT HIS KNOWLEDGE WILL BE PAYING FOR ALL THE FACILITATION IN THE SUB-REGISTRAR OFFICE. THE NOTORIOUS BUILDER/DEVELOPER HAS ALREADY CHARGED YOU THIS UNDER LEGAL EXPENSES- WHOSE LEGAL EXPENSES? 

ENJOY ALL THE FREE GIFTS!

BBMP `A` KATHA – CHECK AND VERIFY THE BACKGROUND AND FIND OUT , HOW THE KATHA IS OBTAINED ? – BEFORE THE PURCHASE


IT IS STRONGLY RECOMMENDED TO THOROUGHLY VERIFY THE BBMP `A` KATHA ISSUED TO REVENUE POCKETS, AREAS, BIFURCATED/LAYOUTS FORMED IN DC CONVERTED SITES AND THE BASIS ON WHICH THESE KATHAS ISSUED BY THE BBMP, BEFORE PURCHASING A SITE/PLOT OR AN APARTMENT.

IN THE COURSE OF OUR VERIFICATION, WE HAVE STUMBLED UPON MANY PARADOXES, SOME ARE SO STRANGE AND SOME ARE MIRACLES AND SOME, CANNOT EVEN DREAM OF IT, HAVE COME OUT TRUE.

LAST MONTH, WE DISCOVERED A MAJOR SCAM OF A PUBLIC SECTOR BANK.  

THE BANK SANCTIONED HOME FINANCE TO ONE PARTICULAR GROUP OF APARTMENTS AND THE BORROWER DELIBERATELY DEFAULTS IN THE EMI PAYMENTS AND THE BANK ATTACHES IT AND TRY TO SELL IT UNDER E-AUCTION.  THE PROPERTY ATTACHED WAS BUILT ON SOMEBODY ELSE`S PROPERTY AND THE BANK SANCTIONED THE LOAN, DELIBERATELY, ATTACHES THE PROPERTY AND TRYING TO SELL IT THROUGH E-AUCTION. 

THIS IS NOT THE FIRST CASE.  WE HAD EARLIER, THIS YEAR DISCOVERED SUCH ILLEGAL AND UNLAWFUL BANK AUCTIONS IN HIGH END AREAS LIKE KORAMANGALA AND HRBR LAYOUTS.

IT IS ALWAYS ADVISABLE TO CONDUCT A THOROUGH AND DILIGENT INQUIRY INTO THE TITLES BEFORE ATTENDING AND BUYING THE PROPERTY ATTACHED BY THE BANKS.

RBI DIRECTS THE BANKS NOT TO LEVY FORECLOSURE/PREPAYMENT CLOSURE OF FLOATING RATE TERM LOANS


RBI/2013-14/582
DBOD. Dir.BC.No.110/13.03.00/2013-14

May 7, 2014

All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir/Madam

Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans

Please refer to our circular DBOD. No. Dir.BC.107/13.03.00/2011-12 dated June 5, 2012 on ‘Home Loans- Levy of Fore-closure Charges/ Pre-payment Penalty’.

2. A reference is invited to Part B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014proposing certain measures for consumer protection. It was indicated that in the interest of their consumers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty. Accordingly, it is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.

Yours faithfully,

(Prakash Chandra Sahoo)
Chief General Manager

RBI INCREASES THE REPO RATES – EFFECT – INTEREST RATES GO UP – HOME LOAN INTEREST RATES UP AND UP


Reserve Bank of India announced a 25 basis points (0.25 per cent) hike in repo rate or the benchmark rate as widely expected.

The RBI’s move may force banks to increase interest rates on loans leading to higher EMIs (equated monthly installments) for existing home loans and costlier retail loans for new customers.

But, as widely expected, some banks and financial institutions may not hike the interest rate.

The RBI on Wednesday banned zero per cent interest rate scheme for purchase of consumer goods, a move intended to protect customers


The RBI on Wednesday banned zero per cent interest rate scheme for purchase of consumer goods, a move intended to protect customers but may dampen the festive spirit. The central bank has also said that no additional charges can be levied on payment through debit cards.


RBI BANS ZERO PER CENT INTEREST SCHEME

RBI/2013-14/292
DBS.CO.PPD No. 3578 /11.01.005/2013-14

September 17, 2013

The Chairman/Chief Executive
All Scheduled Commercial Banks (Excluding RRBs) / Local Area Banks

Madam/Dear Sir,

Pernicious practices of select banks deterring customer protection and accounting integrity

Please refer to our circular DBS.CO.PPD No. 17882/11.01.005/2012-13 dated June 19, 2013, wherein we had observed certain disquieting features in certain practices/products prevalent/ offered by some of the banks. We had solicited your comments in this regard as these were found to be impinging on customer protection, accounting integrity and thereby the fair market practices which banks should epitomize. The issues and the banks’ contentions have been examined at length and our instructions are detailed below.

2. Subvention on price/moratorium for payment offered by dealers/ manufactures – Subventions/Discounts on price or moratorium period for payment are often offered by the dealers or manufacturers on their products to the customers while they make the purchase by availing loans from banks. In such instances, it is the responsibility of the banks, who are/may be using their good offices to get the better bargain, to make the customers fully aware of these benefits and also pass on the benefits to them fully and indiscriminately while sanctioning loan for the purchase. More importantly, this has to be done directly without tampering with the applicable rate of interest (RoI) of the product. If there is a discount offered in the price of a product, the loan amount sanctioned for the purchase should be after taking into account the discount, rather than giving effect to the benefit by reducing the RoI. Similarly, if there is a moratorium period for payment available, the benefit should be passed on to the customer by ensuring that repayment schedule, including the interest servicing, commence after the moratorium period only rather than adjusting it in the RoI. Thus in principle, banks should not resort to any practice that would distort the interest rate structure of a product as this vitiates the transparency in pricing mechanism which is very important for the customer to take informed decision.

3. Zero percent loans/pricing of product as per the sourcing channel – In the zero percent EMI schemes offered on credit card outstandings, the interest element is often camouflaged and passed on to customer in the form of processing fee. Similarly, some banks were loading the expenses incurred in sourcing the loan (viz DSA commission) in the applicable RoI charged on the product. Since the very concept of zero percent interest is non-existent and fair practice demands that the processing charge and RoI charged should be kept uniform product/segment wise, irrespective of the sourcing channel, such schemes only serve the purpose of alluring and exploiting the vulnerable customers. The only factor that can justify differential RoI for the same product, tenor being the same, is the risk rating of the customer, which may not be applicable in case of retail products where the RoI is generally kept flat and is indifferent to the customer risk profile.

4. Levying fees on debit card transactions by merchants – There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards. Such fee is not justifiable and is not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments.

5. Though many banks have appreciated our concerns and have discontinued with the above mentioned practices/ products, some of them still seem to persist with them. These practices/ products thwart the very principle of fair and transparent pricing of products which beholds customer rights and customer protection, especially, in the more vulnerable retail segment. Such practices thus violate, both in letter and spirit, various provisions of our MC on Interest Rate on Advances and therefore, you are advised to strictly desist from these practices hence forth.

6. Please acknowledge receipt.

Yours faithfully,

(G Jaganmohan Rao)
Principal Chief General Manager