7th September, 2016, Cuttack: Earlier this week, Justice Indrajit Mahanty of Orissa High Court admitted that he "carries a loan burden for his long-time business outfit", through an opinion piece that was written on his behalf titled "Media sensation at times hits great guys, hurts society" in The Pioneer. (The "loan burden" is a Rs 2.5 crore working-capital loan for his hotel, The Triple C, which was borrowed in 2009 from SBI. Till this day, amounts ranging between one and two lakh rupees are drawn and repaid every month in the name of "Justice Indrajit Mahanty".) The author, clearly adores Justice Mahanty, writes, "As a lawyer, he became too eminent too soon only because of his keen commonsense, command over the English language and the superb manner of making complex Acts simple for judges and clients alike. He drives points home the same way as smart kids do tricycles." The point of the article is that it is acceptable that Justice Indrajit Mahanty has a big business loan to his name, and runs a hotel, because of his love for humanity, and therefore, our article questioning the ethics of his actions is a "terribly misplaced allegation". The author argues, "Yes, there is a loan burden, not a robbery charge. Yes, he ran it to add value by generating employment for many. The only thing people would like to know is whether or not his ‘judicial conduct is appropriate and above board’; whether or not he is selling judgment, and if he has the knowledge and skills to help the suffering humanity."

Is this a reasonable argument?

The implications of a high judge taking a business loan from a bank, and using it to run a hotel, are far-reaching. Although Justice I. Mahanty is only 55 years old, he is already number two in seniority at Orissa High Court. Being the son of well-known Barrister Ranjit Mohanty, he is influential and well-connected in the legal fraternity. In the next 5-10 years, his career track can make him Chief Justice of Orissa HC, a Supreme Court judge and even Chief Justice Of India.

The Triple-C Hotel can be need not necessarily be a success story. Experienced businessmen like Vijay Mallya often fail to repay the banks; so, is it totally improbable that a part-time businessman like Indrajit Mahanty may fail to pay back what he owes to State Bank Of India?

However, The Triple-C Hotel can be need not necessarily be a success story. Experienced businessmen like Vijay Mallya often fail to repay the banks; so, is it totally improbable that a part-time businessman like Indrajit Mahanty may fail to pay back what he owes to State Bank Of India?

What happens if Justice Indrajit Mahanty defaults and the matter goes to Debt Recovery Tribunal?

  1. Does Debt Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT) get jurisdiction over Justice Indrajit Mahanty?How will Justice Mahanty (who may by then be Chief Justice of Orissa High Court, a Supreme Court judge even Chief Justice of India) be an appellant or defendant before DRT or DRAT?

  2. Does Justice Indrajit Mahanty appear before Orissa High Court?Suppose the order of DRAT is further appealed, can Justice Indrajit Mahanty be an appellant or defendant before Orissa High Court? If not, then what is the proper forum to hear the matter?

  3. Can any tribunal or lower court entertain a matter against any judge of the higher judiciary in respect of his private affairs, such as bank loans or hotel business? Will such proceedings strengthen his public image as a judge, or will it damage it? And what will such cases do to the image of the judiciary?

  4. If a high court or supreme court judge is before a lower court or tribunal, what happens to his superior jurisdiction over such lower court or tribunal? Won't this create a constitutional anomaly?

Apologists and admirers of Justice Indrajit Mahanty, please remember that this is not about one man's goodness or integrity, it is about the integrity of our judiciary as a whole.

ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

Posted By

Sulaiman Bhimani

94323642081

sulaimanbhimani11@gmail.com

 

2

Cuttack, 2nd September 2016: Justice Indrajit Mahanty became a judge of Orissa High Court in 2006, and he became a hotelier in 2009. Activist Jayanta Das broke the story on 8th August with documentary evidence given by judiciary whistleblowers. Kamyab TV, an Oriya TV channel, held a panel debate on this issue. In our press release issued three days ago, we asked whether it was ethical for any high court judge to be a businessman.

Justice I. Mahanty maintained a stony silence but on his behalf, the management of his hotel, The Triple C, issued a denial in The Indian Expresson the same day as our press release. The Triple C Hotel's press statement contradicts the signed affidavit of Justice I. Mahanty himself, and it actually makes this high court judge's actions look totally mysterious!

MYSTERY #1. The Indian Express story says, "A spokesperson of Latest Generation Entertainment Pvt Limited (LGPL), which entered into a 15-year pact with Justice Indrajit Mohanty, clarified that lease/rent agreement for “Triple C” was signed in August, 2007. Chartered Accountant of LGPL R Sharma said possession of the property was handed over to the company in 2009 and it has been running the hotel ever since. LGPL has been paying lease rental for the premises after accounting for the income tax." And later on, it says, "Besides, the accusations that working capital had been availed for running hotel were found to be untrue as neither LGPL nor Justice Mohanty had taken any. Instead, a term loan was secured in 2007 for construction of the building. Application for an additional term loan was made in 2009 which was approved later in the year by State Bank of India."

But this begs the question: Why is Justice Indrajit Mahanty servicing a working capital loan of Rs 2.5 cr from State Bank of India, which he took in his own name in February 2009? Read SBI's loan sanction letter issued on 16th Feb 2009 in the name of Justice Indrajit Mahanty himself (and not in the name of Latest Generation Entertainment Pvt. Ltd.) See below image:

Why is Justice Indrajit Mahanty servicing a working capital loan of Rs 2.5 cr from State Bank of India, which he took in his own name in February 2009? Read SBI's loan sanction letter issued on 16th Feb 2009 in the name of Justice Indrajit Mahanty himself (and not in the name of Latest Generation Entertainment Pvt. Ltd.)

Also, why is Justice I. Mahanty (and not the hotel management company) withdrawing and repaying lakhs of rupees every month? Read the bank statements showing drawals and repayments as recent as May 2015. See below image:

If not from The Triple C Hotel, from what source of income does Justice Indrajit Mahanty pay amounts like Rs 2 lakh every month? And if not for working capital of the hotel, for what purpose does Justice I. Mahanty withdraw lakhs of rupees every month? Will his lordship kindly clarify this?

If not from The Triple C Hotel, from what source of income does Justice Indrajit Mahanty pay amounts like Rs 2 lakh every month? And if not for working capital of the hotel, for what purpose does Justice I. Mahanty withdraw lakhs of rupees every month? Will his lordship kindly clarify this?

MYSTERY #2: The Indian Express story says: "Contrary to the allegations that Justice Mohanty got record of rights of the land in 2006, available documents revealed that the land on which the hotel is located was purchased on October 16, 1981 by Barrister Ranjit Mohanty for his son, Justice Mohanty."

In that case, did Justice Indrajit Mahanty tell a lie in his affidavit? Why did he state, "That I have obtained a plot of land by way of Court Decree from the Court of the Subordinate Judge, first Court, Cuttack, in Title Suit no. 297 of 1981" Why didn't he mention anything about purchase of land by his father Barrister Ranjit Mahanty? See below image:

Did Justice Indrajit Mahanty tell a lie in his affidavit? Why did he state, "That I have obtained a plot of land by way of Court Decree from the Court of the Subordinate Judge, first Court, Cuttack, in Title Suit no. 297 of 1981" Why didn't he mention anything about purchase of land by his father Barrister Ranjit Mahanty?

The Indian Express story concludes by saying: "Sharma said the attacks on the hotel are not only baseless but also motivated and have adversely affected its functioning."

Mr Sharma, do you really imagine that any of this is about the hotel? Oh come on, get real! It's not about The Triple C Hotel, and no, it's not about one over-privileged person named Indrajit Mahanty either. This is about the judiciary and its functioning, and the fundamental right of 1.3 billion citizens of India to be served by judges who are genuinely impartial and unbiased.

ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

Posted By Sulaiman Bhimani

9323642081

sulaimanbhimani11@gmail.com

10

One does not have to defend the absurd in order to respect a person. Objecting to the absurdity of declaring Mother Teresa a saint does not mean disrespect for her work.

Today, Pope Francis declared Mother Teresa a saint. This naturally resulted in a flood of praise and criticism on social media. Contrary to the respectful tweet from the Prime Minister on the occasion, his supporters were NOT happy. They were critics of this step. In their eyes, she is fraudulent, and worst of all, she engaged in conversions (the prime majority fundamentalist objection to religious minority figures in India).

Those who admired Saint Teresa (must get used to not calling her Mother Teresa now) had their own reasons to cheer the long awaited development. In their eyes, her service to the poor and ill made her deserving of respect. Incidentally, this is something nurses in hospitals do routinely and get far less money for it than Mother Teresa got in donations for her cause. Nor do the see the service as a part of promoting their cause. Which does not negate the fact that she did serve like countless other organizations and people dedicated to service. Baba Amte, for example.

I don't have a problem with religious conversions. In fact, I have often said in the past that the poor must be allowed to change religion as often as they wish and religious organizations wanting to increase numbers for their religion should be encouraged to pay them to convert and/or stay in the religion. This beats a lot of hatred and violence in the name of religion and would probably do something constructive for a change.

While there are disturbing questions about Mother Teresa's ethics raised separately by several people, I think no one is perfect and if she had rendered significant service to mankind, it stands independent of criticism in other areas. Today is not necessarily a day for deliberate drawing out of every flaw, real or perceived that she had. In my view, regardless of the questions raised about her, her influence and role model for people was almost entirely one of service - which is not a bad thing.

My problem is with "Saint" and "miracles" that are required to declare a saint. The two "miracles" that proved her a saint were serious medical conditions that got "miraculously" cured by praying to her. To become a saint, the miracles have to be "scientifically inexplicable". However let us not underestimate the refusal of a mind to understand explanations, which are inconvenient to what is desired. These "miracles" have been robustly contested by rationalists and doctors. I will not get into them here, because this article is not about the miracles either - even if inexplicable healings happened.

Hospitals, the world over are replete with stories of "miraculous recoveries" that doctors have no explanations for beyond having tried their best, and yet no one has bothered to declare them places of supernatural occurrence. Sachin Kalbag, the editor of Mid-Day The Hindu, recently had a close brush with death and "miraculously" survived. His post delves beautifully into his contemplations on divine intervention as several unlikely coincidences happened that improved his chances of survival.

If a person who prayed to Mother Teresa made a miraculous recovery and a hundred who prayed to her did not, why is only one of them proof of a miracle? This was a woman routinely surrounded by the sick and dying, for whom she offered care (including medical) for decades and yet such a motivated effort found two miracles. After she died. What about the many who died? Are they proof of her NOT being inclined to save people more than inclined? Could it be that miracles started happening once her influence was gone from the world? What if someone had a freak road accident and died after meeting her? Would she be declared a malicious entity?

Selective vision is a wonderful, perception affirming thing. We see what we are looking for. You see cures in a hospital, miracles in a place of worship Even if 2000 people made unexpected recoveries in a hospital while only 2 did in the saint's worship.

 

India is a country prone to belief in the supernatural. Partly because of a rich mythology, but largely because belief is the only thing a lot of people can afford when faced with very expensive needs, wants and problems. And yet, praying to Mother Teresa is NOT an appropriate course of action if you are diagnosed with a tumor or brain abscesses.

"Saint Teresa" is not about ill people finding care in her organization, or poor and ill people finding free treatment in her memory, it is about ill people being saved by praying to her. This is my problem.

For anyone living in India, miraculous cures are nothing new. Loads of Hindi films have them, usually when the villain is wiping the floor with the hero and just before the climax. Every family has a deity or three (or a more modern guru or mata they find) to pray to when things go wrong. From Baba Ramdev curing homosexuality to homeopathy curing cancer. From quacks taking people off necessary drugs because they "conflict" with their treatment to "faith healing" events in various churches. "Miracle cures" are a staple in India. There is nothing new about them. Why two miracles make a saint should be a question that even the most gullible believer in miracle cures must ask.

Does the canonization of Mother Teresa to Saint Teresa over two piddly miracles mean that the church admits that the countless faith healing events churning out "miracle cures" every week are bogus? I do hope so. It is overdue.

~*~*~*~*~*~*~*~*~*~*~

I had felt compelled to meet Narendra Dabholkar once, after knowing his views for years. I liked what he was doing. What he said. I agreed with his views about the dangers of superstition. We had a long talk, and he suggested that I become a member of their organization. I was ambiguous. I had a baby who was quite young. I had things I was doing. Not really time enough to get into stuff like that you know, I, who was writing an average of three posts a week on this blog (but not about rationalism), told the chap who quit his medical practice for such "stuff" because he had the foresight to see how the erosion of reason ruined us as a whole. I myself had a live and let live approach, even though I understood what he did, to debunk superstition and spread awareness of rationalism was necessary work. I participated in religious ceremonies though I thought they were bullshit and ineffective for whatever claimed purpose they were being conducted. I listened to people talk about various miracle workers while making no effort to encourage them to think things through.

"What is the harm?" I thought. People believed whatever would bring them solace. I remained in touch with ANS (Andhashraddha Nirmulan Samiti) articles and news though I didn't interact with them much. I liked what they had to say, but I wasn't "active" about my rationalism. Then, one day, I was numb. Reading news of Dabholkar being shot dead. Reading countless people on social media share his work, his views. I was one of them. I remembered his patient, extremely reasonable manner of explaining things. He was dead. What a waste. There are very grudging token attempts to nail his murderers. No real will behind them. Who would offend bastions of BELIEF? What was "justice" anyway? How could punishing a person or five compensate for the loss to people at large?

"There is real harm." It was an expensive lesson. The silence of those who didn't bother to work for necessary change, who didn't want the inconvenience of offending people is what made sitting ducks of those who were doing good work. Pick off the voices, and silence dissent.

Belief in superstition is not just about faith, it is about controlling the gullible and it has a dark underbelly. The pretty side is where countless people find hope, as they look at a few well publicized miracles and play an emotional lottery hoping for a similar result, taking it as "luck" when the expected result doesn't happen. The dark side is what happens to those who say "The Emperor has no clothes". And Narendra Dabholkar is hardly the only one to face the ire of religious fanatics for trying to bring a voice of sanity.

Before someone says that it is the Hindu fanatics who killed Dabholkar, let me remind you of Sanal Edamaruku, an Indian rationalist who had to flee the country for the crime of debunking a "miracle". 

This isn't  matter of being polite and not insulting someone who did "good work", it is a matter of actively speaking up against wholesale encouragement to believe in the irrational, to stand up and be among the number of people who have a problem with the promotion of such beliefs, before the few who do it remain the standing ducks to be picked off one by one, like Dabholkar was, Pansare was, and open threats could be issued.... while the rest pretend to believe in rational thought but choose polite evasions and be "goody goody" rather than look bad disagreeing about "respect" of a "good person".

You may afford to think that oh, you like Mother Teresa, therefore you will not look too closely at why she is being called a saint. Today is your day off for skeptical enquiry because it is a special absurd occasion. After all, in this world of selfish people, is it not a miracle someone wants to help people at all? You may afford to encourage a view that helping those in need is something only a saint is capable of (and thus exempt yourselves from having to do anything). You may say, oh it is a pity that people who question superstition get murdered and I promise to be extra skeptical tomorrow. I was like that. I learned my lesson with Dabholkar's murder. It is one I won't forget in a hurry.

Respecting selfless service ought to be good enough for you to not be required to defend the absurd either.

Update: A lot of people have commented on Twitter that the miracles were a formality and the recognition is for her work. Personally, I think the recognition is more about the church having people of worship native to India, so that more people are interested. It is a huge market, you know? But all that apart, there was nothing wrong with respecting Mother Teresa, or declaring her a Saint without the miracles too. Contrary to the belief of the few "rationalists" clinging desperately to this belief of the miracles being a formality, you have the usually sane Outlook Magazine reporting on how the devout still feel her presence, etc. Let us not even pretend that the "devout" don't pray to saints to solve problems. Not even you are that gullible.

Mumbai, 30th August, 2016: To recover its Rs 100 crore project loan to RNA Exotica before it becomes a bad debt like BOI's loan and SBI's loan, Axis Bank is pressing the panic-button and threatening flat-buyers to immediately pre-pay large amounts (like Rs 25-50 lakh), forgetting about slab-completion schedules. Axis Bank has recently written strangely worded letters to RNA's Skyline Construction Co in respect of each and every flat (see specimen), saying that unless the entire remaining amount of the flat's consideration is remitted to its designated account, RNA Corp will not be allowed to sell the said flat to the name of the buyer. These letters, which are supposedly "No Objection Certificates" for the sale of flats to the purchasers, are being lovingly forwarded by RNA Corp to the individual flat-buyers with a tiny email (see example). Axis Bank's relayed letter is like holding a gun to the heads of helpless flat-buyers and saying: "Pay everything right now! Or else you will never get your flat!" And RNA Corp's forwarding email seems to suggest, "Yes, forget about installment payments based on slab-completion schedule. Just pay 100% right now".

In fact, Axis Bank's letter has come as a jolt to many buyers who were unaware that their flat was mortgaged by RNA to Axis Bank! Hundreds of RNA Exotica's buyers are suffering from sleepless nights, trying to figure out what course of action will be in their long-term interest. "Should we just pay the remaining amount to Axis Bank, so that it will release the lien over our flats? Or should we continue to pay in installments according to slab completion stages? Or should we go to Consumer Court? Or Civil Court? Or High Court? Or what?!!!" They are at a loss as to what to do next!

Axis Bank Threat

[NOTE: In our earlier article titled How RNA Corp taught ExoticArithmentic to Axis Bank, we revealed how Skyline Construction Co mortgaged unsold flats of RNA Exotica in 2011 and 2013 based on hugely inflated and completely unverifiable figures. Axis Bank gave the builder a Rs 75 cr line of credit in March 2011, and beefed it up to Rs 100 crore in March 2013, although the value of the collateral fell sharply.

Also, in RNA Exotica: Nine ways buyers got screwed, we analyzed the negative implications of the sale-purchase agreement.]

Now let us analyze the letter written by Axis Bank, supposedly addressed to Skyline Construction Co., but actually addressed to the flat-buyer directly. The subject line says, "No Objection for Release of Charge for Sale of Flat no. XXX in Building no. B Wing of RNA Exotica in favour of Mr YYY." The letter goes on to say:

  • RNA Exotica has been mortgaged exclusively to Axis Bank for a sanctioned line of credit of Rs 100 crores.
  • The said flat no. XXX is sold/proposed to be sold to Mr. YYY for a total consideration of Rs 1.8 crore (or some such amount), and that "We have been requested to issue our NO Objection for the said sale".
  • "We wish to inform you that we have No Objection for Release of Charge on the said premises to enable you to sell the said premises to said Mr YYY... subject to the specific condition that the total consideration mentioned above shall be deposited in designated account no ABCXYZ maintained with the Bank. Provided that if the Bank is not in receipt of the said sum of Rs 29.26 lakh in the designated amount as aforementioned, this NOC shall not have any effect and shall be deemed to be cancelled... and the charges over the said premises shall not stand released."

No, this is not really a "No Objection" letter; it is actually an Objection letter from Axis Bank to the flat-buyer with whom it really has no direct connection, and as such, it is illegal. As Axis Bank has given a project loan to the builder and not a home-loan to the buyer, it has no business communicating with the home-buyers.

IMPLICATIONS OF AXIS BANKS'S LETTER:

  1. REGISTERING OF SALE-PURCHASE AGREEMENTS MAY BE HELD UP. Home-buyers who already have a registered sale-purchase agreement are slightly more safe. But, for those buyers who only have an Allotment Letter from the builder, this letter implies that they will not be allowed to register their agreement until they have paid 100% of the consideration amount and got an NOC from Axis Bank.
  2. CONFLICTS WITH HOME-LOAN LENDING BANKS. Home buyers who have taken a home-loan from another bank may be in a fix. Their bank will insist on releasing funds only according to slab-completion, and therefore, they will never get Axis Bank's NOC until the final payment is made... and so, they may have to wait till that stage for registering their agreement.
  3. HUGE PRESSURE ON SELF-FINANCED BUYERS. On the other hand, home-buyers who did not take a home-loan may feel under pressure to pay the entire remaining amount of Rs 25 to 50 lakhs, or even more, all at once. Do they have the capacity to pay such amounts immediately?
  4. PAYING 100% NOW MEANS BEING AT THE BUILDER'S MERCY. If home-buyers succumb to the temptation of making 100% payment at this stage, then what financial power do they retain in their hands? After paying 100%, they are totally at the builder's mercy. Currently, construction activity is going on at the 33rdfloor slab. Even if one assumes that the building is only 35 floors (and not 40 floors), a huge amount of construction work still remains, namely brick-work, plumbing and drainage, electricals, plastering, flooring, interiors, fixtures, lifts, stairs and common amenities such as clubhouse, etc. etc. At least two more years of work -- or about 50% of the work – is still remaining to be done before the flat-owners can get possession. What if Skyline Construction Co stops work and claims that it has run out of money? What if it demands more money – say another 20 lakh per flat – to complete the project? Going to court may not sound like such a good option then, and flat buyers will be left with no option except to pay whatever the builder asks.

What is the solution to all this? One possible solution could be that flat buyers should pay this amount to Axis Bank, but only after filing a civil case and after RNA Corp gives an undertaking to the court that they will complete the project within a deadline. Groups of flat-buyers are reportedly planning to take some such step, although these discussions are still at a preliminary stage.

Aagey dekhiye, iss dhaaravahik ki Ugly kadee!

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao

9821588114

krish.kkphoto@gmail.com

WITH MAJOR INPUTS FROM

Sulaiman Bhimani

9323642081

sulaimanbhimani11@gmail.com

Mumbai, 30 June 2016: Hundreds of savvy and well-educated flat buyers have purchased "luxurious" flats in RNA Exotica without noticing what their sale-purchase agreements clearly says: that RNA Exotica is actually a large and shabby slum rehabilitation scheme with a tiny island of rich flat-buyers. The rich people's housing project is married and tied to the rehab component in the same undivided compound -- a marriage made in hell! Not just RNA Exotica's sale-purchase agreement, but also project layouts and plans presented to MOEF, give a birds-eye-view of this nightmarish neighbourhood. With clever advertizing, a tight-lipped sales staff, and several clauses in the sale-purchase agreements that forbid investors from asking the right questions, RNA Corp has been consistently misleading its investors for many years. A prospective home-buyer never gets to read the true facts before he is inside the builder's trap!

So let us take a close look at all the ugly truths that the sale-purchase agreement reveals. As a specimen, take the sale-purchase agreement of actor Arif Zakaria (Flat no. 1903, D-Wing).

Inline image 1

NINE WAYS THE BUILDER SCREWED YOU:

  1. RNA Exotica is a Apartment and Slum Rehab Project in a single compound, so you can't object to general public and outsiders in your compound. The agreement makes sure that flat-buyers will have no right in future to object to the rehab building and car park constructed adjoining RNA Exotica, in the same compound. This clause tells flat-buyers in no uncertain terms that the public parking being constructed on the rehab building is not available for their cars. Read this on page 13 and this on page 21 of the registered agreement. So, the proud flat purchasers should know from this clause that their building compound is only semi-private, unlike most of the apartment compounds that are completely private.

  2. RNA Corp can construct anything on top of your flats, so keep quiet and mind your business. The agreement gives the builder the unlimited right to build anything on top of the "top floor" flat, and the flat-purchaser must keep mum about it. In other words, the builder can continue to commercially exploit any increase in FSI or any changes in rules, even if it causes great delay, inconvenience and losses to the flat-buyers, and the only thing that they can do is smile and feel privileged about owning a luxury flat in RNA Exotica.

  3. RNA Corp can construct servants' toilets, septic tanks, electric sub-stations, closed garages, etc. etc. anywhere in the compound or in the building, so shut your nose, mouth and ears.The ground plans or floor plans shown in the agreement can and will be extensively changed to suit the builder's requirements, and this is plainly stated in the agreement itself. All kind of noisy, smelly or intrusive structures can and will be constructed in various parts of the building and compound where you live, including the same floor where you live, but you cannot object on any grounds because you have signed on an agreement that ties your hands. Your rights as a flat-buyer are restricted to the premises that you have purchased, and not, as is the case in other building projects, the common amenities.

  4. RNA Corp can and will create third-party rights and entitlements to various parts of your building and compound, including clubhouse and various parts that you may mistakenly consider as your common amenities. Read this point carefully again, and you will see that this clause is not just a routinely-drafted formality, but is cleverly drafted to take away all your legal rights.

  5. RNA Corp can decrease the common areas and facilities in your building, and you waived your right to raise any objections.People book luxury apartments not just because of spacious flats, but because of spacious and well-designed common amenities and facilities. These amenities and common spaces are factored into the price of the flat as "super-built-up area". But, after paying lakhs of rupees up front to book a flat in RNA Exotica, buyers are informed by their registered agreement on page 37 that the common areas cannot be taken for granted, and they have no right to object!

  6. You unknowingly gave a power-of-attorney to RNA Corp to sign legal waivers on your behalf before all government authorities, without even informing you. According to this clause, the developer need not consult you or even inform before making big or small changes in the plans, because he can always sign an indemnity or undertaking on your behalf to tell the government that you are OK with anything that he does!

  7. You have surrendered your right to independently verify title and ownership of the plot of land on which RNA Exotica is built... because agreement says you have already verified it and satisfied yourself! Mr flat-buyer, when you signed on every page of the agreement in the Stamp Duty Registrar's office, you definitely were not looking for tricky clauses like this one. But here is a clause on page 17 and another on page 25 that says that you have already verified the title and satisfied yourself, and now you have agreed not to investigate any further, or raise any objections.

  8. Possession date is deliberately left blank. Therefore, you have no way of holding RNA Corp accountable for delay of several years, although there is technically a clause for delays. Read this clause on page 37 and its continuation on page 39.

  9. RNA Corp can allot you car parking according to their own sweep pleasure, and you cannot object. The builder may allot you a really shitty parking in the basement, podium or stilt, and the builder may sell favourably-positioned parkings to others. You have no right to object. Read this clause on page 41.

So, Mr and Mrs Flat Purchaser, it is only in theory that you bought a luxury apartment in RNA Exotica. Your luxury apartment exists only in pretty advertisements. The fact is, you just bought a 2BHK or 3BHK in a shitty slum rehab neighbourhood overlooking the railway tracks, and you signed up on a document that says that you have no right to keep the people of your neighbourhood and sundry public from accessing your compound... and you have no right to object to this entire scheme of things. The only thing you can say now is, "It was nice being screwed by you, Mr Anil Aggarwal."

Inline image 2

Sincere thanks to Sulaiman "Superman" Bhimani (9323642081) for his continuous detective work, which enabled and motivated me to write this article.

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao

9821588114

krish.kkphoto@gmail.com

2

Media Release: RNA Corp teaches Exotic Arithmetic to Axis Bank! "One-two-ka-four, four-two-ka-one, my name is Lakhan"

22nd June, 2016: When builder Anil Aggarwal's Skyline Construction Co approached Axis Bank for a project loan for RNA Exotica in 2011, the bankers forgot simple arithmetic. On two separate instances -- in 2011 and in 2013 -- Axis Bank's SME loans division gave loans of Rs 75 crore and Rs 100 crore against hugely inflated mortgages of floor space in RNA Exotica. The flat size was inflated by 500 to 700 square feet per flat, and the number of unsold flats mortgaged was inflated by a couple of hundred flats in 2013. Anil Aggarwal, like Anil Kapoor (you know, the chap who sang, "One-two-ka-four, four-two-ka-one, my name is Lakhan") sang a seductive song to Axis Bank executives, who were more than willing to be seduced.

The late Anil Aggarwal's version of one-two-ka-four sounds like this: "770 square feet flat ka 1299 and 979 sq. ft. ka 1650... My name is RNA Corp! Jadoogar Anil Agarwal said 168 sold flats in 2011, but 66 sold flats in 2013. Numbers mein kya rakha hai? Now gimme your money, sweetheart."  The sweethearts at Axis Bank gave the builder a Rs 75 cr line of credit in March 2011, and beefed it up to Rs 100 crore in March 2013, even as the value of the collateral fell sharply!

RNA Exotica's Flat Sizes are on Steroids:

  • Skyline Construction Co's registered mortgage deeds in 2011 (and 2013) based on inflated and unverifiable figures, viz. 1299, 1650 and 1699 sq. ft. The correct sizes i.e. carpet areas, viz 770 and 979 sq. ft. are readily available through the flats' sale agreements.
  • The sale deed of flat no. D-1903 booked by actor Arif Zakaria shows 979 sq. ft. whereas the mortgage deed shows 1650 sq. ft. So, RNA Corp has represented to Axis Bank that this flat is 671 sq. ft. larger than its actual carpet area! And Axis Bank has unquestioningly accepted this figure as a basis for its mortgage!

This raises the question whether Axis Bank has double-standards – one for people like you and me, and another for people like Anil Aggarwal. Would Axis Bank have sanctioned a loan against our flats if you and I cited Super Built Up area instead of the carpet area?

Axis Bank loan was Supersized while RNA Exotica was Downsized:

  • RNA's Skyline Construction Co.'s March 2011 loan was of Rs 75 crore. In March 2013, Skyline prepaid the RNA Exotica project loan and got the mortgage released, and immediately took a fresh loan of Rs 100 crore. Unsold flats of RNA Exotica were mortgaged to Axis Bank. The 2011 mortgage deed shows the number of sold flats as 168 (2,41,350 sq. ft.), with a table of flat-buyers' names and flat numbers. The 2013 mortgage deed claims that the number of sold flats supposedly dropped down to 66 (i.e. 94,951 sq. ft.). How? Did Skyline sales staff spend two years buying back over 100 flats from investors, instead of selling additional flats? There is no table of sold and unsold flats in the March 2013 mortgage deed.
  • Why this reduction in the number of sold flats? Because RNA Corp, which had gone to town in 2010 claiming that RNA Exotica would be a 48-storey tower, (i.e. 10 floors podium parking, one floor E-deck, plus 37 upper floors) was not getting MMRDA's permission for building that many floors.
  • The March 2011 mortgage deed is based on calcuations of 30 upper floors (i.e. 459 flats, 16 flats per floor). In March 2013, there is reduction of 35 flats. That means roughly two floors less, bringing the total to about 28 upper floors. But is that final? NO!
  • According to a source at MMRDA, RNA Corp in June 2016 has permission to build only 21 upper floors. Frantic efforts are being made by the builder to get this raised to 25 upper floors. Even if such efforts succeed, further reduction of 48 flats will happen – i.e. a total reduction of about 80 flats. The top floor will be 36th floor (i.e. 10+1+25).
  • The falling expectations show in the sale agreements. Whereas Kushan Pritish Nandy's sale agreement registered in October 2014 said 30 upper floors, Arif Zakaria's sale agreement in August 2015 mentioned 25 upper floors!

One two ka four 1

Why Financial Jugglery was done:

In 2013, Anil Aggarwal's big problem was: How to get a higher loan amount sanctioned from Axis Bank against a much smaller mortgage? The solution was: by reducing the number of sold flats, the "stock" of mortgagable unsold flats would appear higher. (So, what is the real number of sold flats? My guesstimate is: if 168 flats were already sold in March 2011, then 100 more flats in the next 24 months @ four flats per month. So, 268 sold flats were falsely declared as 66 flats. If each flat is valued at Rs 1.5 cr on average, the property mortgaged to Axis Bank was worth Rs 300 cr less than claimed!)

If the building is of only 36 floors including podium, what will happen to flats such as these where sale agreements have been registered for flats on the 40th floor etc? Will the investors be compensated by RNA Corp for not delivering of the promised flats after paying money and waiting for several years?

All this financial jugglery for downplaying the risk of RNA Exotica becoming a Stressed Asset! RNA Corp has defaulted on smaller loans from Bank of India and State Bank of India. This auction notice says that RNA Corporate Park defaulted on SBI for Rs 61.50 crore, for which mortgaged land parcels in Palghar district will be auctioned. And this letter from Bank Of India to the secretary of RNA Royal Park, Kandivali, tells a similar story of default and bank recovery proceedings.

SBI is struggling to recover an amount of Rs 61.5 cr by auctioning land plots that turned out to be under CRZ, and therefore valued at a fraction of the original projected values. Will the one-two-ka-four loan transaction of RNA Exotica and Axis Bank have a similar ending? Wait and watch.

This story is based on inputs from RTI activist Sulaiman Bhimani 

(9323642081, sulaimanbhimani11@gmail.com).

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao

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