Central Himalayan CLoud 9 Hilltown Ramgarh - Unreliable Property Developers

Guys,

I am starting this blog to keep all the folks investing in Real Estate informed about the pitfalls and problems of investing in India. This is also a community service for others to avoid the pain that I have gone through. Investing is central to people and Himalayan Region near Ramgarh is a Hot place due to its beauty with small town, beauty of Hills when ever they come out of Clouds and become visible.

The Story begins almost 3-3.5 years back when I visted Khabrar in Ramgarh near Nainital and was exposed to Cloud 9 Hill Town - a Property by Central Himalayan. I was sold of a dream of owning a small Villa in literally cloud 9 in a remote Himalayn Hill Town being promoted as Cloud 9 Hill Town at Ramgarh by Central Himalayan. The opportunity back then looked great of owning a small abode in clouds and I was excited that Central Hmalayan has brought this opportunity at Cloud 9 Hilltown, and I though of being smart to jump in early by buying a Villa at Ramgarh. Well that was the begining of the problems with Central Himalayan which were to come and shatter the dreams of a home in the Hills. First Central himalayan had promised to get my loan processed for the Villa at Ramgarh which took manay months and a lot of follow-up to finally get sanctioned.

Soon after paying the first Installment the problem started. First I got letters from Local folks there informing that there is acute shortage of Water in the area and hence Locals were against the Hill Twon to comeup over there. They complained and Local Authorities suspended the project. The Developer, it seems was also under fire for felling trees agaist the local laws.

The project was then delyaed for many months. The developer also advised us not to send any payment till further notice. Many months Later the request for money came in and when I approaced HDFC - the premier Indian Housing Loan Agency - I was told
a) That they cannot sanction the full loan as the proejct has not progressed well as well as the developemnt of my unit was not up to the mark.
b)They also informed me that they have stopped giving any loans for the property and for any other properties by this developer.

When I approached CEntral Himalayan, I was metup very rudely. They never gave any update on the project except for the general terms and did not provide any photographs to show the status of the project. The project was to be completed by October 2006 but is still far from complete even now.

Not only that they are now The developer is now blaiming us for the delay when in relaity they have delayed the project and even an independent assement by HDFC confirms this.

They are also forcing an interest on delayed payments when
a) There is no clause in the Agreement for the interest
b) The Delay is primarily due to poor Execution and Local issues

The developer even failed to sendout regular Demand Notes which are needed for processing loans.

I have never seen a developer who is so poorly managed and unethical. They are rude and very difficult to dela with. I am told that they have pressurazied other Villa owners and forced additional interest to them to cover themselves for the cost escalation due to their own poor planning, execution.

Now they are building a huge township there and I am worried that
a) Will the area with problems like water can be suistainable
b) I also fear that simialr unrest may comeup again leading to delays.

I am now contemplating taking legal resource and hope that others investing in ther may not go through similar fate.

I will keep you guys posted on the progress. Stay Tuned.