REPORT FROM STANDARD CHARTERED BANK ON OBEROI ESQUIRE's issue

Oberoi Esquire Goregaon Unacceptable Changes by Builder!24 April 2012 23:17

BELOW IS THE REPORT FROM STANDARD CHARTERED BANK ON OBEROI ESQUIRE:
India l Real Estate Investment & Services 23 April 2012
Channel Chat
India real estate – new DCR raises costs, pass-through woes for Oberoi Esquire
 Our channel checks suggest that new DCR amendments, which came into effect in January 2012, have increased FSI
costs for builders and prompted them to make design alterations even on launched/ongoing projects.
 Checks suggest a significant drop in demand for under-construction properties as buyers await clarity. Residential
absorption in Mumbai at 33m sq ft/pa is currently at its lowest since November 2009.
 Oberoi Realty has made changes in its Esquire project (2m sq ft of premium residential, 0.6m sq ft sold) design leading
to a reduction in usable area by ~200-400sq ft/apartment. Furthermore, project costs will increase by ~Rs800/sq ft to
purchase FSI; this would be absorbed by the developer, but the change has not been appreciated by buyers.
 Oberoi has offered refunds on cancellations. Our channel checks suggest no cancellations yet, but joint efforts by
buyers to negotiate with the builder is possible; it may also witness lower sales in Esquire (65% of sales in 9M FY12.)
New DCR norms impacting demand. The new Development Control Rules (DCR) for Mumbai, notified in January 2012,
has raised developers‟ FSI costs. On their part, developers are attempting to pass on the higher costs to customers even for
under-construction projects, by altering the project design, which has met buyer resistance and new buyer reluctance. Our channel checks suggest a drop in demand for under-construction properties across Mumbai. The annual absorption run-rate
in February 2012 stood at 33m sq ft, the lowest since November 2009.
DCR raises costs for developers. Our channel checks suggest that DCR amendments are a broader industry issue and
most developers are changing designs to incorporate the new rules. As per the new regulations, the area used for
balconies, terraces, swimming pools, flower beds, voids and niches will now be counted in the Floor Space Index (FSI).
These areas were earlier excluded from FSI calculation. Developers can buy 35% additional FSI under the umbrella of
„fungible FSI‟ to compensate for the additions in FSI and need to pay 60% of the ready reckoner rate for residential projects
to avail of fungible FSI. Furthermore, developers get 25% car park space free of premium payments and FSI calculations.
Oberoi’s Esquire project – a case study. In the Esquire project, Oberoi has reduced useable area by ~200-400sq ft
/apartment. These areas were given as balconies, dry yards, etc, and were earlier excluded from FSI calculations. The new
design increases the carpet area by ~100-150sq ft/apartment; but shrinkage in useable area is more measurable for a
buyer. Buyers are charged on useable area though registrations are done on carpet area. In its letter to buyers, Oberoi has
given them an option to cancel and get a refund of the base price but our checks suggest no cancellations yet, as buyers
feel comfortable about being in-the-money (Oberoi increased base price by Rs1,000/ sq ft in March).
To impact Oberoi Realty. Oberoi could face one or more of the following: 1) joint negotiation by buyers to ensure their
concerns are met; 2) implied increase in selling price/sq ft based on reduction in usable area; 3) future sales; 3) increase in
net construction cost by ~Rs800-900/sq ft to pay for the additional FSI; and 4) a few cancellations.

http://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Oberoi Esquire appeal to unite to fight against Oberoi Realty

Real Esquire17 April 2012 07:43

I have also bought a 3 BHK Flat. I am all with you. My id is realbuyeresquire@gmail.com. There is no more to write. Lets try to meet at one place in this week itself . Then we can do either of the following:-

a) Sent jointly a letter to oberoi realty asking for refund excess money.
b) Sent a legal notice to oberoi realty for for refund of excess money.
c) Create a campaign thrugh social networking sites like facebok, twitter, etc to highlight the unethical practice and malafide intent of oberoi and drum up public support
d) Go to leading media houses ( print as well as TV channels ) as common front and explain them the whole situation and ask them to broadcast the same in their paper / channels.
e) File in all the courts for stay of construction of the oberoi esquisite, esquire as well as upcoming projects ( basically full goregaon residential project) till court comes out with solution as the FSI or all the area is derived from one plot.
f) Approach CCI on similar lines of what has happened in DLF Case.
g) Independently also do conference call with equity broking houses / Indian capital market participant to make them aware of the whole issue. Oberoi Realty do lot of self bragging on its transparent and ethical practices to the Equity market and as result of the same is able to get high premium in share price compared to others. This will make analyst / fund managers aware of actual position of such virtual claims.

We have to fight with oberoi realty on multiple fronts to make them clear that THEY CANT FOOL AROUND. OBEROI REALTY VALUATION IS MATERIALLY DEPENDENT ON GOREGAON PROJECT. THIS PROJECT HAS TO GET GET STUCK AND NO CONSTRUCTION WILL BE ALLOWED IN CASE OBEROI WANTS TO DO FRAUD WITH ITS CUSTOMERS.

http://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Legal angle against ORL from Oberoi Esquire resident

Oberoi Exquisite and Esquire Goregaon E Project14 April 2012 06:28

Dear Amitabh,
Good that you have written to Oberoi Realty stating unacceptable changes and refund of proportionate amount. Please ask all your friends/flatowners to write on this blog so I can keep track of all people. I cannot believe that any flatowner would be okay with these changes, apparently, Oberoi Realty claims some people are fine with the changes. Either they do not understand what they are losing out or Oberoi Realty are lying. In any case, we need to inform and update everyone. I will try to get the list of all flatowners out and contact them, would need your help also.

I met a senior solicitor today and discussed the issues.
1. DLF has lost 670 cr to a recent MRDP ruling under 'unfair practices'. This will help our case in case we go for litigation
2. Lawyer states builder is wrong since no DC amendments states that balconies cannot be provided. Builder wants to avoid paying premium/penalty. Thus, Builder will most likely agree to do settlement / refund.
3. Lawyer says, write to builder and ask for refund for the usable area that has been lost out (in my case it works out to be 550 sq ft. for a 4bhk). Wait for builder to reply, bombard him with reminders every 5 days. Incase reply is not favorable, take lawyers advice and send LEGAL NOTICE.

Please get more people to read this blog and give their views, share contact information.

http://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Amitabh feels cheated by Oberoi Realty

Amitabh Singh12 April 2012 00:32

I have also purchased a flat at Oberoi Esquire and this was for stay and not investment.

The revised plan has resulted in a 300+ loss of usable area. The new layout reduces the utility, purpose and feel of the house

The dry yard of 60.35 sq feet carpet area is totally missing
Balconies in the Living Room and the Master Bed room is also missing
I have paid additional Rs.8,50,000 for the 85 sq feet additional for Supreme for the full length balcony. If the balcony has been taken off then what is this charge for.
Huge raised seating area of around 30 sq feet each with storage below in 2 bedrooms next to window is also missing (This is there in the current sample flat). This effectively reduces your actual bedroom size

There was an area of 34.79 sq feet attached to the kitchen balcony which could be utilized for many purposes ( servants room / gym etc ). That area was approachable from the kitchen balcony. That area has been taken off ( now replaced with a smaller chajja )with no approach as the kitchen balcony is completely missing

Chajja cannot be equated to balcony. 106 sq feet increase in the carpet does not equate to the usable area loss as mentioned above

Oberoi Realty should either provide us with the usable area that was promised by them at the time of purchase or reduce the price in the same proportion of the reduction in usable area

FSI rules have changed and the balconies and dry yard is now being considered in FSI calculation. Oberoi Realty is probably citing this reason for taking off this area. If this area was offered complimentary to us, we would have understood this move but we have paid for every square inch of this space including the dry yard and balcony. This area cannot be reduced without a proportionate reduction in price

Either Oberoi Realty should pay us back at the prevailing rate of Rs.12,500 for the super built up area of 2280 sq feet and we surrender the flat which they believe they can sell to others or reduce the price proportionately

samitabh1@yahoo.com
Flat Ownerhttp://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Oberoi Esquire resident cheated on carpet area?????

Oberoi Esquire resident cheated on carpet area????? 
They have send all the flat owners the revised layout. Earlier they have promised usable area of ~ 1616 sq ft ( ~ 1212 carpet area ) . Now they are giving total area of ~ 1320 sq ft ( rough calculations) and all other area is not there. Further, all french windows and sitting ledges are out and you will get windows of 3-4 ft only. They are giving chajjas but these will be without railing , two feet below flat floor area and access will be block ( as windows are 3-4 ft and you will not be able to go without risking your life).
As per the new municipal rules, builders have been given 35% extra FSI on one FSI with payment of some charges. Earlier the ratio of oberoi esquire was around that only ( ~33% extra area on carpet area ). Now builder has increased carpet area by mere 9% and taking away other areas ( net loss to users will be ~24% of carpet area. Letter of oberoi reality is silent about reducing the price as they are now giving lesser area though they are still eligible for full area (which they will use to make more flats , sell it to other people and make more money) . This will means they make humungous money at cost of consumer as they are charging customers twice for same area and getting away with it. 
I request all the esquire flat owners to start approaching other esquire flat owners, educate them on this aspect , make a group and have discussion with oberoi reality to protect their own interest. The time is short and we all have to move really fast.
Flat Owner6 April 2012 21:49
http://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Manipulation by Oberoi Realty Ltd at Oberoi Exquisite and Esquire Goregaon E Project ???

Manipulation by Oberoi Realty Ltd? ........Oberoi Exquisite and Esquire Goregaon E Project7 April 2012 00:44

Dear All,

I spoke to Smitha Patel (RM) and Rochelle Chatterjee (Head Sales) from Oberoi Realty. They told me that some flat owners of Esquire are okay with the revised plans since they booked as matter of investment. I WOULD URGE ALL ESQUIRE AND EXQUISITE FLATOWNERS REGARDLESS OF END USE OF YOUR FLAT TO REVOLT AGAINST THIS UNACCEPTABLE CHANGE OF PLANS. Below are the negatives that the letter does not delineate.
1. The usable area has considerably reduced. My 4 BHK usable area was meant to be 2361 sq ft and carpet area was to be 1753 sq ft. While revised plans show higher carpet area of 1956 sq ft, the usable area is same as carpet area, thus loss of 405 sq ft.
2. Balconies with ledges and railing add to the beauty of the flat. Removing balconies is absolutely WRONG. The BMC regualtion states builders need to pay premium in case they build balconies. Well, Oberoi is planning on giving us balconies anymore so what premium are they paying to BMC. We want to know how exactly have their costs risen which they state they are absorbing.
3. Instead of reducing number of floors or reducing number of flats or reducing the landscape area, they have gone the extreme way by reducing our usable area. This is just not acceptable.

I would request all flatowners to write to Oberois requesting immediate change such that usable area promised is given to us, otherwise, request a full refund and forfeit your flat. Give them a WARNING! (They should ideally reduce prices if usable area is being reduced).Please also mention you flat number, name and contact in this forum for me to be in touch with you and form a group to take necessary action.

http://oberoiesquire.blogspot.in/2012/03/share-your-experience-here.html

Can Oberoi Realty Ltd be trusted

Dated 22.6.13
Dear All,

Many people have written about engaging in dialogue with ORL. At the outset, we would like to state that if matters can indeed be sorted out through engaging in dialogue that would be the best possible outcome and OSFOA including all flat owners would indeed welcome this possibility.

However, consider this:

1. The issues we are faced with are not new – change in plans without consent, Grande, land entitlement, society formation, parking shortfall, amenity reservation of 7.5% converted to FSI free public parking and Prisma building, inadequate amenities, maintenance account issues, Maxima, VAT, STP, construction quality issues etc. have been raised with ORL by several flat owners, individually as well as collectively many many times over the last two years;

2. Many meetings have been attended with ORL over the past two years – senior ORL officials, particularly, Vikas Oberoi himself, Saumil Daru, Thatagatha Sarkar, Arun Kootian, Sadekar etc. have been approached personally with all these issues many times. Hundreds of emails, letters and even legal notices have been written to ORL and various of its senior officials by flat owners over the past two years;

3. Several verbal assurances have been made by many of these officials, including Vikas Oberoi and Saumil Daru on many occasions;

4. However no action has been seen till date;

5. ORL continues to load new flats into our property and deprive us of our land through Grande/ Prisma/ Maxima (without compensating us for the same), ORL continues to form society including Grande despite owners unanimously opposing it and is illegally attempting to handover and run a society without representation by even a single flat owner from A to F towers of Splendor (by flouting every law imaginable), ORL has failed to offer any solution to address our parking problems or our overcrowded amenities, ORL refuses to render proper account on our maintenance expenses and income generated by the complex, ORL refuses to refund our Vat deposit, refuses to resolve our non -functional STP, failed to provide Mahanagar Gas etc. etc.

6. On top of all of this, Vikas Oberoi and Saumil Daru and any of their other officials refuse to even acknowledge that any of the above is a genuine issue that owners are faced with. They constantly write to us stating that these are all non-issues or give irrelevant and untenable justifications or excuses to each of them. There is absolutely no indication whatsoever that they have any willingness to even acknowledge the existence of these issues, leave alone attempting to offer solutions for them.

7. Under these circumstances, what sort of dialogue can we really hope to have with them?
We are of the view that these emails sent by Vikas Oberoi offering dialogue are really a smoke screen and delaying tactic to buy more time and to distract owners.

8. If Vikas Oberoi is indeed serious about dialogue, he should write to all flat owners offering tangible, real solutions to all our problems/ issues/ concerns, instead of brushing them aside with vague and irrelevant justifications and excuses.

9. One simple example of this is his offer on parking – he has simply vaguely said that there is place to construct extra parking – without specifying how many parking slots can be constructed, where will they be located, how long it would take etc.

We would like to reiterate what was stated at the concluding discussion of the meeting of OSFOA on June 15, 2013 – any dialogue must be conducted in an open, transparent and inclusive manner and not behind closed doors involving a few selected special owners. But the primary pre-requisite for dialogue is that Vikas Oberoi and ORL must show some real intent by acknowledging the problems/ concerns/ issues highlighted to them by flat owners and OSFOA and they should come out with a written communication offering real solutions to these problems.

Until this happens, we have no option but to pursue all legal remedies available to us to enforce our rights and entitlements.

Best Wishes,
OSFOA