Apartment projects: Investors don’t think they’ll get their dues

On an average, most people paid Rs15m for an apartment.

KARACHI:

The 258 people who had invested millions in the abandoned Creek Marina Apartments have decided to take matters into their hands and become a party in the lawsuit between the developer and Defense Housing Authority (DHA).

These individuals had paid Rs15 million on an average for the apartments. They claim that the apartments were not built as a result of a tussle between Creek Marina Limited (CML) and DHA. He added that DHA had taken CML to court over delayed construction as the project was supposed to be completed in 2009. The CML is a subsidiary of Meinhardt Singapore and has filed counter suit against DHA for hindering their work.

“We know it can take months or years to get a court order in our favour,” said former foreign ambassador Mansoor Alam and the Chairman of Creek Marina Affectees Committee. “The investors have decided not to take sides. We will ask the court to make us interveners in the case since our money is stuck.”

The housing authority launched the project in 2003 amid much fanfare as part of its plan to develop the coastal belt.  It was supposed to have eight blocks with 27 floors and 568 luxury apartments out of which 258 were booked and paid for. “We have paid Rs3 billion to the developer,” said one customer. “We all know how long court cases can take. We should file a FIR against the CML to show that we are serious.”

A Pakistani by origin, Dr Shahzad Nasim, the CEO of Meinhardt filed a defamation suit against Alam and other members of the committee who tried to get his direct response on the issue.

Renowned cardiologist Dr Hamid Shafqat paid Rs12.6 million in installments and does not think he’ll see the apartment anytime soon. “The developer has run away with our money,” he said. “Now there is talk of another company taking over the project which means we will have to pay more.” According to Alam, the cost of construction, cement, iron and ceramic had also increased while the depreciation of the rupee had increased the cost of home fittings which were supposed to be imported. He added that DHA had leased the land to the CML for 73 years. “It is now trying to get the agreement annulled and appoint another developer,” he said. “What about us? Who will give us the compensation?”

The CML initially stopped work when their construction contractor, a Chinese company, backed out of the project. It promised to restart work once it received the penalty compensation from the contractor.

Published in The Express Tribune, December 29^th, 2011.