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| Find investors to complete Hill County project, Maytas tells members |
| BS Reporter / Hyderabad Jul 23, 2009, 18:09 IST |
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Maytas Properties, which is facing an uphill task of raising finances for completing its Hill County project, has now turned to the home owners. It is asking its customers to use their good offices to find investors for the project. Most people who have purchased properties at Hill County are software professionals, NRIs and entrepreneurs and would have been exposed to venture capitalists and other funding bodies — is the premise on which it is working to get additional support.
Top officials of the company met some of the members last week and put up this proposal before them. The company offered to give unencumbered collateral to the prospective investors with the flexibility to withdraw the money invested in a year, sell off some property at rates much lower than the prevailing market rates. The prospective investors could liquidate the collateral if the company did not repay.
Though the members have started approaching VCs, they feel the effort might not yield tangible results due to inherent risks associated with Maytas Properties.
Maytas Properties, one of the two companies that the Satyam founder had made an abortive bid to acquire in December last year, ran into problem after it failed to keep its promise of delivering the homes at Rs 1,100-crore Hill County project in March 2008. Hill County, located at Bachupally on the city outskirts, proposed to build 840 apartments and 326 independent bungalows. They were priced between Rs 50 lakh and Rs 2.5 crore.
According to the members, the pursuit of the investigative agencies does not seem to end anytime now. Also, about 55 acre of the land of Hill County (Phase II) is mortgaged with the Hyderabad Metropolitan Development Authority. This would be given back only when the amenities - sewerage, roads and sub-stations and others are created. The members said this would take time as Phase I itself has overshot the deadline by 15-odd months. Also, the title of part of a land at the Bachupally campus is on different companies and Maytas Properties attained developing and selling rights through an agreement with those companies.
Moreover, with the slump in the real estate market, it would take some time for the markets to fetch better prices.
This apart, some members said they were not able to register the units on their name as the mortgage was not released. "This fact was withheld from the buyers at the time of sale of such units,'' said an home owner, who paid full amount and could not register the home.
In all, it is said that there are 70 independent houses and more than 20 per cent of the flats are in this situation.
The Hill County Home Owner's Welfare Association, the body formed to protect the rights of the home owners, today represented the issue to Telugu Desam, Lok Satta and CPI and CPM parties and they expressed solidarity with the former.
"The government should order a special audit to validate the Maytas Properties claims on assets, unsold inventory and the receivables,'' the association members said adding that the company should fairly compensate the customers for the time overruns.
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