Indian investors lose hope in Esperanza Residential Project in Kochi

Sixty investors from the UAE have paid money for dream homes that are yet to be delivered by Indian  builder

A group of non-resident Indian investors in the UAE and other Gulf countries said they have lost hope in a residential apartment project in their home country bearing the name Esperanza (Spanish word for Hope) because even six years after making the payment, they are yet to get possession of their dream homes.

A group of 40 to 60 Indian investors are planning to approach the concerned Indian authorities seeking their immediate intervention to address their grievances –  long delay in handing over the houses for which they have invested between Indian Rs 2.2 million to Indian Rupees 3.3 million.  About 180 housing units are sold but not delivered and the victims include Non resident Indians from Kerala and other parts of India, residing in the UAE, Saudi Arabia, Qatar etc. If their problem is not addressed, the investors will take legal action against the erring builder.

The original schedule for the delivery of Esperanza housing units in Kakkanad, Koch is July 2010, which was changed to December 2014 and now there is no response from the builder’s office, they alleged in Dubai. While many Non Resident Indian property investors were earlier cheated or defrauded, complaints against Mather Project’s Kochi apartments is the latest such allegation to emerge. Earlier several hundred investors have lost money in various housing projects like Apple a Day Property development.

Speaking jointly, the group of aggrieved Indian investors said they were promised by Mather Projects, a construction company from Kochi Kerala that the units will be delivered in 2010 --six years after making the payment, the housing units are yet to be delivered and they are not sure whether the builder can hand over the project in the near future. The builder promised a monthly return of Rs25,000 for luring the investors.  Bimal Bhatia from New Delhi, resides in the UAE has invested in six flats believing the tall promises made by the builder. He was told that two leading NRI investors are part of the project team but so far he has not got even one flat. The investors were promised that leading Indian retail groups like Reliance will be taking the commercial space in the project, which never happened.

“Esperanza is brought to you by Mather Projects, the builder who introduced the concept of lifestyle housing to Cochin, Kerala. It has always been our quest to be above the ordinary,” claimed the builder.According to the original plan, 180 apartments and commercial space were being developed in Kakkanad, Kochi near the Smart City. Investors said the delay could be due to internal problems within the company and family dispute.

“About four years ago, the Chairman of the company himself came to Dubai promising to speed up the project delivery. He had told us to give some more time and we were counting  on his promise,”  the aggrieved investors said, adding that though the building structure is completed, the finishing work is not completed and the new delivery date of December 2014 also could not be fulfilled. It is an 11 storied studio apartment complex in Kakkanad, Kochi, near the Smart City.

Abdul Khader Pannakkad, an Indian businessman who has invested in Esperanza, said : “We have been waiting for the hand over of these flats but it is not happening. About 60 of the aggrieved investors have come together with a plan to approach the Kerala Chief Minister, leader of opposition and others demanding the handover of the delayed projects.”

“There was an advertisement in the media and several NRIs from the UAE and other Gulf countries have invested in the Mather project. The original promise was that these housing units will be delivered by July 2010. Now the Dubai office of the company is non functional and the aggrieved investors said there is no response from the builders office in Kerala too.

When Emirates 24|7 contacted the Dubai office phone number provided in the Mather project official website, the respondent said the office is currently used by an ambulance company.  Latha George, Job Varghese, two other aggrieved NRI investor from the UAE, too share the same griavencves with Abdul Khader. According to them about 60 investors from the UAE alone have paid 90 per cent of the price already, taking bank loans and savings.  In many cases, banks have already handed over the loan amount to the builder, but no one got possession of the residential units.

Mather & Company was incorporated in 1944 has developed many big projects in the past. |It has been allegedly facing some delays in implementing projects due to a dispute within the management and family members. A Director of the company spoke to Emirates 24|7 over telephone and said the investors have raised the issue, without realizing the current status. He said the project has been progressing well and only some work is pending. He said the investors problem will be soon resolved and the company is optimistic about delivering these homes. He said the delay was due to internal problems but the issues are being sorted out. Mather & Company has listed Esperanza as an ongoing project.

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