Housing Scams

It happened in the last years of the NBFC boom and bust and it is happening now amidst the real estate meltdown. In the late 80s the newly minted non-banking financial companies that were running on hype rather than returns, managed to con a number of gullible investors into placing their funds with them against the promise of whopping returns. Later when investors turned up to collect they mostly met closed doors. The building boom in India, particularly for home buyers, is now in serious danger of going down the same path.

Some years ago a prominent Delhi based builder announced project in West Delhi with the usual fanfare and media hype. I don't know how many people fell for it it and put down advances to book this piece of paradise on earth. But those that did must be ruing their luck. Today the project is in that never-never land where all thoughts of "the ultimate in luxury living " lie banished. What you have instead is a a dirt site with unruly grass growing all over and not a speck of construction material anywhere in sight. Local brokers say the project ran afoul of authorities. But sandwiched between lethal tarnsmission wires and a metro substation, there's no future for this "picture perfect place to park your dreams!"

But if you went to the site of the builder (http://www.parsvnath.com/Paramount/Aboutproject.asp), you wouldn't guess there's any problem with the project. The only giveaway is the pictures under the head "Site Photographs". When 2 years after a project was launched you only see pictures of the marketing office, you know this is one housing dream that's going nowhere.