By Anurag Singh
The Great Indian Banking Scam: I want to bring attention to a disturbing nationwide organised scam that you are a familiar with, but most don’t quite understand the “fraud” part of it. And like some of my answers do, it may ruffle some feathers. But truth must be told. Here it is:
Do these pictures seem familiar to you? Go to the outskirts of any major city in India, (for example take Noida & Gurgaon which are on the outskirts of Delhi), you see miles & miles of semi built structures that just stay dead still & never get completed. All these buildings started in different years, but surprisingly, they all face “financial trouble” just after the basic structure is built. Why don’t we see buildings that stop in-between, say after 4 floor or 8 floors? The answer is an organised scam played by the state governments, builders, banks & accounting bodies. This is how it works -
The builders sell you construction linked plan. You assume that it's a fair plan as the builder will charge money as and when the construction progresses and it is in builder’s interest to complete the project with speed. Looks fair for all. This is where the catch is! The so called “construction linked plan” is a sham designed by the agencies listed above, backed fully by the government and banks. Let's look at the reasons:
In case of any doubts or concerns, write to me at firstname.lastname@example.org or on twitter @anuragsingh_as
Honest, unbiased & Simplified, as always.
Afterthoughts and updates -
I thank readers for positive feedback and questions on this article. Since lot of you have asked this, I must add how life would change after RERA for “new projects”. Well if the legal channel is too prolonged, there is no point of fighting the legal battle as time is money & builder doesn’t pay penalty. So outlook is not bright & I’ll quote examples.