Raheja Developers

Raheja Developers Limited
Formerly called
 Raheja Developers Private Limited
Private
Industry Real estate
Founded 1990 (1990) in Delhi, India
Founder Navin Raheja
Headquarters Saket, New Delhi, India
Area served
 National Capital Region
Key people
 Navin Raheja (Chairman and Managing Director)
Nayan Raheja (Executive Director)
Website www.raheja.com

Raheja Developers Limited, (RDL), formerly Raheja Developers Private Limited, is an Indian real estate development company with its headquarters in Delhi, India. RDL was incorporated by Navin M Raheja in 1990. The company has received several Euromoney awards, but has been subject to investigations and legal challenges on several occasions.

History

Raheja Developers Limited was incorporated by Navin Raheja in 1990.[1] The business has worked with contractors such as Aedas,[2] Callison, Lessard, Meinhardt,[3][4] WSP, Shapoorji-Pallonji,[5] and L&T.[6] Two of its joint-development projects were in collaboration with Tata Group.[7] It also collaborated with Dubai-based Arabtec Construction.[8]

In 2008, Raheja Developers planned to build a Special Enterprise Zone (SEZ) in Gurgaon at an estimated cost of $660M US. The development was to be on a 255-acre (103 ha) site[9] but the project did not advance. The Government of India announced denotification of the SEZ project on 29 January 2014; the entire project was scrapped.[10]

Raheja launched a project in Sohna in January 2015 under the affordable housing policy of the Haryana Urban Development Authority (HUDA).[11][12]

Investigations and legal challenges

Tax affairs

Raheja Developers were named in a sting operation relating to corruption by investigative portal Cobrapost.[13][14][15][16] Based on this, the Central Board of Direct Taxes, ordered a probe into Raheja and 34 other developers.[17][18] Raheja Developers Ltd were also target of a tax raid by Indian Income Tax authorities in February 2010; tax evasion amounting to ₹80 crore (US$12 million) was unearthed at that time.[19]

Kathputli Colony

In 2009 Raheja won a contract from Delhi Development Authority (DDA) to improve the slums at Kathputli Colony in Shadipur, where the company would build 2,800 flats for the poor people of the area and in return receive 10 per cent of the land for commercial use.[20] However the project could not be started due to the refusal of slum-dwellers to move out to allow re-development.[21] This policy failure was acknowledged by the DDA.[21] In 2014, an election candidate of the Aam Aadmi Party (AAP) alleged that the contract was a scam created by the DDA and the company.[22] Out of the 5.22 hectares i.e., 52,000 sq m of land, 60 per cent (31,200 sq m) was marked for the rehabilitation of the colony, and the rest was given to Raheja Developers.[23] AAP further alleged that the contract was a way to give the company prime real estate at a low cost under the guise of assisting the slum dwellers, who state that they were forcibly evicted from their homes.[24][25]

Raheja Atharva, Gurgaon

In 2014, the Prime Minister of India's Office ordered a probe relating to alleged irregularities in a Gurgaon housing project named Raheja Atharva.[26] Raheja Developers were quoted as blaming HUDA for the delay over construction of infrastructure like road connectivity, water and sewerage. On 16 December 2015, on basis of complaint by the Atharva Owners Welfare Association, an inspection was carried out by G. R. Goyat, Chairman of the State Level Expert Appraisal Committee,[27] and 0.8 acres of the Atharva project was sealed as it was illegally constructed without any Environmental Clearances.[28] Further, the news report states that instead of 520 apartments for which permission had been obtained, around 700 apartments had been constructed without obtaining the Environmental Clearance. And, instead of the 30 per cent of green space indicated by the approved plan, the builder had left only around 15 per cent.

43 buyers of properties in the Atharva project filed a lawsuit against Raheja Developers with the National Consumer Disputes Redressal Commission (NCDRC).[29] Following this filing on 22 July 2014, an additional 24 cases involving over 750 buyers have been filed by home buyers of Raheja Vedanta, Raheja Navodaya, Raheja Atlantis and additional buyers in Raheja Atharva at the NCDRC as of 3 January 2016, with Raheja being the respondent.[30]

On 7 October 2015 a public notice was issued, and published on 22 October 2015 in the Hindustan Times, regarding complaint of Raheja Vedaanta buyers against Raheja Developers Ltd at the NCDRC. The notice informed all other buyers, who were not yet part of the Vedanta case against Raheja Developers to join the 110 buyers who are part of the 2015 case before NCDRC.[31]

On 15 June 2015 an investigation was ordered into the Raheja residential project called Shilas (the name of some towers in the Raheja Atharva complex) by HUDA, after an inspection revealed that the fire safety systems in the 700-apartment complex were non-functional.[32]

An episode of Truth vs Hype by award-winning anchor Sreenivasan Jain broadcast on 13 February 2016 on NDTV described some issues being faced by buyers in Raheja Developer projects.[33] (Video segment at 10:41 minutes into the program.) Buyers in Atharva and Vedaanta pointed out that the projects did not have valid fire safety clearances in the projects. During a recent fire in the Atharva complex, the fire department was not notified, and neither were the fire tenders called, for fear of violations being detected. The buyers also pointed out that there were towers which were built in violation of the fire safety codes, and there was no setback roads around them, and fire tenders could not reach those towers at all. It was also pointed out that though Environment Clearances had lapsed in the projects, the projects had illegally obtained Occupancy Certificates.

The buyers in Atharva project further alleged that the builder had showed them large green areas in 2007, and plans to build only 440 apartments, but the builder did not honour that promise. In an area that was designated as a green park, the builder had constructed a series of high rise towers called Shilas, taking the total number of apartments to 700. To meet the statutory requirements of green areas, the builder had overnight covered tennis courts with grass, and had installed plastic grass in other areas. The buyers also alleged demands for exorbitant additional costs: Raheja wanted to charge them Rs 2,4 million more than the agreed Rs 7.2 million price, even though the project was not complete in 2016, five years after its planned delivery date. The buyers also alleged that their "super area" had increased, collectively for the complex by over 50,000 sq. ft., and the builder was charging them for this without being able to explain the cause of the increase.

Navin Raheja appeared on the programme and objected to all of the allegations made by buyers. He claimed that though he had completed the project, the buyers were unwilling to take possession of the apartments as their monthly maintenance charges would start immediately. He also claimed that the buyers had misrepresented the situation about the Environment Clearances, Fire Clearances, Occupation Certificate, and the lack of statutory green areas.

Forbes allegation

Forbes India alleged in 2015 that Raheja Developers[34] indulged in strategic lawsuit against public participation to stifle criticism of its business practices.[35]

Raheja Production

Raheja Production is a film production house developed by Raheja; it produces nature documentaries as part of the corporate social responsibility activities of his company.[36][37]

Awards

References

  1. ↑ "Business Week: Raheja Developers Ltd". Business Week. Retrieved 2014-11-26.
  2. ↑ "Tata Housing to develop 200 lakh sq. ft.". The Hindu. Retrieved 2008-08-08.
  3. ↑ "Lessard Design". Lessard Design.
  4. ↑ "Times of India Publications". Times of India.
  5. ↑ "Bhoomi Poojan of – RAHEJA SHILAS". MagicBricks. Retrieved 2010-10-18.
  6. ↑ "RAHEJA ARANYA - OVERVIEW". Times of India. Retrieved 2013-11-07.
  7. ↑ "Rahejas to ink JVs with Tata Housing, 2 Dubai firms". Financial Express. Retrieved 2011-11-01.
  8. ↑ "Raheja forms JV with Dubai's construction firm Arabtec". Livemint. Retrieved 2011-11-05.
  9. ↑ "Raheja to invest Rs 4,500 cr to develop engg SEZ in Gurgaon". New Delhi. Press Trust of India. 20 August 2008. Retrieved 2015-03-14.
  10. ↑ "Raheja Denotification" (PDF). SEZindia.nic.in. Govt of India. Retrieved 2016-01-03.
  11. ↑ "List of Affordable Housing Licences in Haryana". Town & Country Planning, Haryana. Retrieved 2015-02-13.
  12. ↑ "Affordable segment moves into focus as others". Indian Express. Retrieved 2015-01-03.
  13. ↑ "Operation Black Ninja". Cobrapost. Retrieved 2014-12-11.
  14. ↑ "Raheja Developers BUSTED in Sting Operation By Cobrapost Regarding Black Money". Qubrex News. Retrieved 2014-12-18.
  15. ↑ "Black money rampant in realty deals, reveals sting op". Times of India. Retrieved 2014-12-11.
  16. ↑ "Cobrapost Stings Realtors". Business Standard. Retrieved 2014-12-11.
  17. ↑ "Black Money: CBDT orders I-T Probe against select real estate firms". www.livemint.com. Mint. Retrieved 2014-12-11.
  18. ↑ "Cobrapost sting: CBDT orders probe against real estate firms over black money allegations". Financial Express. Retrieved 2014-12-11.
  19. ↑ Saini, Manveer. "Tax evasion worth Rs 80cr unearthed". Times of India. Retrieved 2015-01-05.
  20. ↑ "DDA's slum makeover plan takes off with Kathputli Colony". Mandakini Gahlot indianexpress.com. Retrieved 2009-10-07.
  21. 1 2 "Consensus clause for slum projects". The Times of India. New Delhi. TNN. 10 March 2015. Retrieved 2015-12-15.
  22. ↑ "AAP's Police complaint on Kathputli Colony scam". Retrieved 2014-11-20.
  23. ↑ Tauhid, Sadafut. "Kathputli Colony: The Illusion of Rehabilitation". Ritimo. Retrieved 2015-01-23.
  24. ↑ ALI, MOHAMMAD. "'DDA granted undue benefits to Kathputli Colony redeveloper'". Retrieved 2014-11-20.
  25. ↑ "Delhi: Kathputli Colony facing threats of evictions and police action". Retrieved 2014-11-20.
  26. ↑ Hussain, Shabana. "PMO asks Haryana to probe complaints against Raheja Developers". Forbes India Magazine. Retrieved 2014-12-19.
  27. ↑ "Gazette of India" (PDF). Ministry of Environment, Forest and Climate Change. Retrieved 2016-01-03.
  28. ↑ "SEAC Seals Site of Raheja Builder". Amar Ujala. Amar Ujala Newspaper. Retrieved 2016-01-03.
  29. ↑ "Forty three (43) Raheja Atharva Buyers Sue Raheja Developers (Gurgaon) In National Consumer Commission". GurgaonScoop. Retrieved 2014-12-26.
  30. ↑ "NCDRC Case Status" (Case Status: NCDRC; From Date 22 July 2014 To Date 3 January 2016; Field - Respondent - Raheja). National Consumer Disputes Redressal Commission. Retrieved 2015-02-13.
  31. ↑ "Public Notice Regarding Complaint 73 of 2015 by Raheja Vedaanta Buyers at National Consumer Disputes Redressal Commission". Hindustan Times. Retrieved 2015-10-22.
  32. ↑ "Shilas Project Main Khameian Milne Per Raheja Builders Ko Notice". Dainik Bhaskar - Daily Newspaper. Retrieved 2015-06-19.
  33. ↑ Jain, Sreenivasan. "Truth vs. Hype - Real Estate, False Hopes". NDTV. NDTV Network. Retrieved 2016-02-21.
  34. ↑ "Business Week: Raheja Developers Ltd". Business Wire India. Retrieved 2015-10-21.
  35. ↑ Hussain, Shabana. "It's Builders Vs Buyers in the Indian Real Estate Industry". Forbes India. Retrieved 2015-01-05.
  36. ↑ "For the record". The Pioneer (newspaper). Retrieved 2016-09-13.
  37. ↑ Singh, Nidhi. "Chequebook CSR Will Never Give You Inner Peace: Navin Raheja | CSRLive". CSR Live. Retrieved 2016-09-13.
  38. ↑ "DIPP circulates Cabinet note on relaxing FDI in housing sector". The Indian Express. 21 September 2013. Retrieved 2015-02-06.
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