Ira’s Con Game

Real Estate Guru Impact TS Rera Served Notice to IRA

It is a well known fact that if you invest in small amounts, you will get high returns. This includes post office schemes, such as PPF. If you invest in them, you will have full security for your money. Hence, most of the commoners invest Rs 100 to Rs 1,000 per month in such schemes. The interest rate can be as high as six per cent. But to what extent is it reasonable to ask people to invest lakhs of rupees, promising them high returns? That too is completely contrary to SEBI regulations. But in the State of Telangana, plots, flats and commercial complexes are being sold violating all existing laws. People are being promised cent per cent guaranteed returns on their investment. But how could this be done without RERA permission and what is the RERA administration doing to curb such atrocities? Here is Real Estate Guru’s take on such a con game.

Ira Realty, a new company, has sprung up in Hyderabad recently. The company is trying to dupe buyers and investors, promising a new wave of prosperity and financial progress. With attractive brochures and plans, the company has come up with a nearly fool-proof plan to cheat its customers by promising to develop a 150-acre project in the land which is now filled with hillocks and boulders. All this appears to pocket more than Rs 300 crore at one go.

Ira Realty’s main objective is to build luxury homes on barren lands filled with hillocks and boulders in Cheemaladaari area on Shankarpally-Mominpet Road, at around 30 km distance from Hitech City. The company’s goal is to build environmentally friendly homes. It works well for those who want to live peacefully away from the city’s busy life. The proposal is very interesting to hear and one that not many could resist investing in. But what makes one suspect the real intentions of the developers is the fact that such a massive project, where the developers are planning to pool money from their customers as investment, does not have HMDA/DTCP or RERA approvals. No realty developer is authorised to take up sales of properties or even publicise about them without RERA permission. But the company appears to have flouted all these norms.

Ira Realty has come up with an attractive brochure with photographs of villas, amenities and also a variety of designs sourced from internet and otherwise. The company management is trying to attract investors, using this colourful brochure and urging them to join hands with them to realise this dream project as well as double their investments. Doubting the intentions, some buyers brought the issue to the notice of Real Estate Guru and upon close inspection into the matter, it was understood that Ira Realty had not taken RERA approvals. The company had only applied for DTCP approvals which is being promised shortly. They are promising world-class villas, ultra premium apartments, and HMDA layouts on approximately 150 acres. Each plot is being sold for 600-1200 sq. yards. At present, the price of a plot is Rs 12,000-15,000 per sq. yard in the said area. However, Ira Realty is ready to sell their plots for Rs 8,500 per sq. yard. Considering that about 50 per cent of the total 150 sq. yards has to be left for open space, amenities, roads and other infrastructure, the company is promising to develop and sell about 75 acres of land i.e. 3,63,000 sq. yards. For a price of Rs 8,500 per sq. yard, the company is estimated to collect a whopping Rs 308 crore. Even if they succeed in selling half of the plots, the company management can easily pocket Rs 150 crore.

Just imagine how many such companies are collecting money illegally from the public, promising great returns for their investments and collecting crores of rupees without even obtaining relevant approvals from RERA and other authorities concerned. While people must remain vigilant and cautious before investing in such fly-by-night companies, it is the responsibility of the RERA and municipal authorities as well as those heading various real estate developers and builders organisations to protect innocent people from such shameless sharks. The Telangana government must wake up from deep slumber and start cracking the whip against such illegal firms, failing which all of them might end up in a bigger mess one day that they cannot even handle.