Until yesterday, Aurobindo Realty was one of the biggest brands in the construction sector of Hyderabad. One cannot help but get swept away upon visiting their projects like Kohinoor and The Pearl in Madhapur and The Regent in Kondapur. This company is renowned for getting its projects designed by international architects. People who purchased flats from these projects, consider themselves to be very lucky as they are some of the finest landmark projects in Hyderabad.
However, the buyers were shocked when the Enforcement Directorate arrested Aurobindo Realty MD Sarath Chandra Reddy. Many of them who invested their hard-earned money in the company’s project, are in doldrums with the new twist. They are calling the marketing staff and insisting on cancelling the flats. Some of them are confused about the future of Aurobindo’s realty projects, as the company’s MD himself got arrested.
In fact, some industry experts say that Aurobindo Realty does not have much of a problem with cash reserves. Sources said that there may not be much difficulty in the work progress as the construction was not being undertaken entirely depending on the sales. However, if the ED decides to freeze all the bank accounts of Aurobindo Realty, there could be a risk of the works getting halted.
If not completely stopped, the Aurobindo projects under construction are likely to move at a snail’s pace until the investigation into the Delhi liquor scam is completed. A similar scenario was witnessed in the past, when those who bought flats at Indu Projects, which was embroiled in YS Jagan Mohan Reddy’s case, faced difficulties. The projects got delayed and the registration work was not done, much to the agony of the buyers. Now that the liquor scam is also entwined with politics, uncertainty looms large over the fate of the projects.
With the arrest of Sarath Chandra Reddy, most of the people who have bought flats at Aurobindo Realty may think twice on whether to continue further or not. To ensure that their hard-earned money is safe, they are highly likely to cancel their flat bookings immediately. In such a scenario, the company must return the money to such customers within the stipulated time as per the norms. It may be recalled that those who bought flats in Indu projects faced various difficulties and the buyers of Aurobindo Realty might not take a similar risk to avoid any further troubles.
With the Aurobindo Realty MD being accused of involvement in the Delhi liquor scam, new buyers may not come forward to buy flats in the company’s projects. Obviously, they might not want to invite any trouble, especially their life savings getting stuck in the banks for a longer period. So who will look after the company operations when the MD himself is sitting in the jail? Those in-charge of the company operations should work day and night, to monitor the construction activities, focus on sales and also maintain quality standards constantly. They also should coordinate with the vendors and bankers, to ensure that the construction work does not get halted under any circumstances.
Aurobindo Realty has emerged as one of the biggest brands in Hyderabad’s construction sector, within a short span, by surpassing several companies which have been struggling to survive in the sector for the last 25-30 years. One of the main reasons for its success is that the company takes up projects in prime locations. The projects like Kohinoor and The Pearl in Madhapur, along with The Regent in Kondapur, are best examples for it.
However, with the company MLD getting embroiled in the Delhi liquor scam, the brand image of the company took a heavy beating. As a result, many home buyers will not be inclined to purchase flats in the project and are all likely to shift to the new projects in the surrounding areas. The sales in the upcoming projects by other builders, are expected to soar beyond expectations. While the fate of Sarath Chandra Reddy who is now in Tihar jail remains unknown, none want to take any risk and might rethink their decisions.
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