Dreamz kept on saying to its customers that they do not take funding from banks to keep the property price down. Now you may ask then from where the hell they get the money? Very simple. Every time one person books a flat, they keep on chasing for 25% to 50% down payments even before executing the MOU, and by executing I mean literally executing and not registration. Registration of MOU is a strict No No. For 50 flats in a project, they take booking from 500 people and that means more that the construction cost required. Total expenditure is well collected before even begining of the project. They they start the project. Please note that if all bookings are not collected they the delay starting the project.

Construction once started, they delay the required paperwork for the buyer. The CRM keeps on saying that 2 more days, 7 more days etc just to get the time. They even before doing any paperwork they ask for the tax and higher rate that the actual. As you are already agitated you refuse to pay or cancel the booking. about 300 people cancels their booking at this stage. They take 90 working days to give you the cheque and the total time for this ranges from 100 to 120 days. They give you PDC’s which are suppose to bounce and they created a separate department to handle this issue headed by Amarnath and others.

Once the cheque bounce the cancellation dept. will send you to other departments for another 2 months. I have seen people struggling for 6 months or more also with these other departments. Then at last you will meet Amarnath who will start issuing you again cheques which will again bounce. after another 2 months he will start with paying Rs. 50K each time you visit. But you have to keep visiting frequently to get all the money.

So total time taken to get your money (say 10 lakhs):

Delay in documentation – 3 months
Cancellation and cheque – 4 months
visiting other departments – 2 months
getting new cheques – 2 months
recovery by frequent visit – 3 months minimum

So they have this Rs. 10 lakhs intact for 12 months at least. They pay no interest, no bounce charges, nothing. They dont need any bank loan till we are there.

If you do not cancel, then you carry on with booking till your home loan is rejected by several banks. Then either you pay in cash or you cancel the booking, which will give them more time.