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Gera in News

Buyers ask how banks can clear loans for illegal flats

Times of India - 12 December, 2014

PUNE: RishikeshDongre, a senior manager in a private firm purchased a 2 BHK flat in Shivane and was pleased with his investment. After all, he had a housing loan from a reputed nationalised bank that had verified the property documents and the builder had facilitated the loan process. It was only after he moved into his new flat that he found that the builder had permission to construct only up to five floors. His flat was on the sixth floor of the seven-storey building. 

"I have been deceived like many other people. I fail to understand how a nationlised bank approved a loan for a flat on a floor that had come up without permission," Dongre said. The manager who had approved his loan is now transferred. Dongre points out that the deviations are not limited to the additional floors alone. "I have the brochure the builder gave us when we visited his office for the first time. As per the brochure, the project comprised only two buildings but more than 10 buildings have come up by now," he said. 

Pitaram Complex, the building in Narhe village that collapsed on October 31, had permission for five floors, but the builder had added a sixth floor to it. Residents of this building too had taken loans from banks to buy flats here. While most banks maintain that their checks and balances are in place, a few admit that the fierce competition in the housing loan sector has led to such projects getting loans. 

"Banks scrutinise all documents before approving loans, but it is difficult for them to check if the builder is adding more floors without permission. We give loans based on the documents submitted to us. In the last few months, we have stopped sanctioning loans for constructions in some parts of Pune that are notorious for illegal buildings," said a bank official. He, however, added in some cases banks believe builders when they say their additional floors would also get permission. 

"Banks sanction loans to illegal floors in a sanctioned building. But on many occasions, the builder just vanishes from the scene after the construction is over," he added. 

Economist YamajiMalkar said that property deals through banks still remain the safest way to check illegal constructions and use of black money. "There are flaws in any system, which need to be addressed. But the state must initiate steps to ensure that all realty dealings are through banks. It is necessary to stop use of black money that is coming in Pune market," said Malkar. 

The apex body of realty developers, 
CREDAI - Pune Metro, wants the state government to act. HemantNaiknavare, president of CREDAI said, "Illegal constructions are coming up in large numbers because people are getting homes at an affordable price. We (big builders) are not in a position to address the issue of affordable housing. The government must take initiative, but the government is not serious in this regard." Naiknavare added that CREDAI has set certain terms and conditions for its members, but it was not possible for them to keep tabs on small time and fly-by-night builders. 

"Those responsible for illegal construction must be punished, be it the builder or the government official who played a role. The district administration must have a vigilance mechanism in place that uses modern technology to curb illegal constructions. But it is most important to ensure affordable housing," said CREDAI vice president Rohit Gera. 

However, he added that affordable housing will remain on paper as long as land prices remain high and developers are taxed heavily. "In the last 4-5 years, land prices around Pune have escalated. There is also a heavy tax burden on customers, including VAT, LBT, service tax. As long as these issues are not resolved, there is no possibility that anyone would come forward for affordable housing projects," said Gera. 

Dt. 12.12.2014. Pg. 4


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First of all I would like to thank  you  and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I  took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend  the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned   it  has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..

My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days.


It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.


This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..

Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.