Investors seek CM help in stalled realty project
Harried investors in Golden Castle flats complex, proposed to come up in Mihan area, have written to the chief minister Devendra Fadnavis
Feb 04, 2015
Source : The Times of India
Devendra Fadnavis, Maharashtra CM


NAGPUR: This may be another case of investors losing their money in a real estate project in the city. Harried investors in Golden Castle flats complex, proposed to come up in Mihan area, have written to the chief minister Devendra Fadnavis and the vice-chairman and managing director of Maharashtra Airport Development Company (MADC) Tanaji Satre seeking help in the matter.

A local realty company, Phoenix Infra Estate International Limited had acquired a four-acre patch from MADC for the Golden Castle project having 148 flats in all. The agreement with MADC called for finishing the work in 39 months. The deadline ends in February, but the work has not gone beyond digging the foundation. The investors of all the 148 flats have paid Rs11 crore cumulatively as advance payment. This comes to 25% of the total cost of the flats.

Jiten Nashine, the chairman of Phoenix Infra, is learnt to have practically wound up his operations from Nagpur with a skeletal staff remaining in the office at Lokmat Square. Nashine himself has shifted out of the city. The staff at Nagpur office said he could not be reached even on phone these days. Last year, his two brothers, Yogesh and Mahesh engaged as directors in the company, were arrested by the Indore police for allegedly duping investors in sale of plots.

There was a time when Phoenix representatives could be seen chasing prospective buyers on the streets with offers to buy land or flats near the Mihan project. Two years ago, an income tax raid marked the beginning of its downfall.

Investors in Golden Castle project have now formed an association. In the letter, they have alleged that Nashine and other key officials have gone underground and they don't see any chance of the company finishing the project. The association has requested MADC to intervene in the matter and handover the project to another builder so that the work can be continued.

A source said the investors' letter will be forwarded to MADC's headquarters at Mumbai. The deal between Phoenix Infra and MADC called for termination of the agreement if work could not be completed within 39 months. At the same time, the builder also had to be given an opportunity to be heard.

The source clarified that there was no clause related to ensuring the safety of investors' interest in case of termination.

Though Nashine could not be contacted, an employee at Phoenix Infra's office in Nagpur said the company is waiting for a joint venture deal to finalize after which the project will be resumed.

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