[Resolved]  Vatika India Next Gurgaon 21 — High Cost, of construction progress but continuous payment demand

INTRODUCTION


Vatika Group lauched "Vatika India Next project (Gurgaon 21) - sector-82 Gurgaon" in March 2008 with starting BSP of 2470/- per sq ft with additional PLC of[protected] per sq ft (depending upon number of PLCs). In addition to this, car parking charges/IBMS/EDC/club membership are additional to this.

Note that, current BSP from Vatika is 2720/- per sq ft.


SUMMARY OF ISSUES

1. NO CONSTRUCTION WORK PROGRESS AT SITE. NO OFFICIAL COMMUNICATION FROM VATIKA TO MEMBERS REGARDING THE CONSTRUCTION WORK COMMENCEMENT DATE AND COMPLETION DATE

2. DELAY IN PROJECT SINCE BEGINNING

3. ALL APPROVALS NOT IN PLACE DUE TO WHICH NATIONALIZED BANKS LIKE SBI NOT WILLING TO GIVE LOAN

4. NO RESPONSE FROM VATIKA TO E-MAILS INDICATING NO VALUE TO CUSTOMERS

5. NO CLARITY ON MEMBERSHIP CANCELLATION CLAUSE


DETAILS

As on date (22nd Feb 2009) there is no progress in the construction work on the site.

To add to this, in the span of past 10-11 months (i.e. since inception), none of the activities have been performed as per the proposed time-lines (construction linked payment payment) in the application form. In other words there is a delay in project since starting. To prove the point, lets see the proposed timelime and actual time when the action was inititated by Vatika, till date:-

1. Booking Date : March-End / April Starting 2008
2. Next installment due within 30 days of booking i.e. by May '08 but Actual date was Mid May 08
3. Next installment due within 3 months (or at allotment) whichever is later i.e. Around July 08 but Actual date was Mid Oct 08
4. Next installment due within 6 months (or at allotment) whichever is later i.e. Around Oct 08 but Actual date is Feb 09. Demand is currently open.

So, there is already a delay of roughly 4 months. Also, BUYER-SELLER AGREEMENT which must have been signed immediately after Allotment but Vatika dispatched the agreements in Feb'09.

To add to this, there is no clarity as when the construction will be started and when will the project get completed. On checking with Vatika, they verbally conveyed that work is scheduled to start in April 2009 and expected to finish by 2011-end. But, again there is no written commitment/communication in this regard.

Besides above, Vatika-CRM has stopped responding to e-mails which shows the kind of care they exten to the customers.

When checked about membership cancellation, Vatika is not willing to say anything. However, other people (non-Vatika) do say that normally booking amount/earnest amount gets forfeited but as such nothing is mentioned in the application form.

On cost front, DLF Bangalore/Chennai has already reduced the price for existing projects but no such benefit has been provided by Vatika as of know.