The real estate industry is going through a bad phase, and there are several reports suggesting stagnant sales and unsold inventory in the city and Mumbai Metropolitan Region.
The suicide by a developer Mukesh Sawla, who jumped from the 15th floor highrise in Matunga has left the real estate industry stunned. In order to avoid such untoward incidents, the apex body of real estate industry in the city, CREDAI-MCHI stated that there is a need for a forming counseling or a support group to help affected developers.
The real estate industry is going through a bad phase, and there are several reports suggesting stagnant sales and unsold inventory in the city and Mumbai Metropolitan Region. Developers are forced to borrow money at interest rate as high as 36%. Nayan Shah, president, CREDAI-MCHI said, "Our community stands by the family and calls for a support system like counselling or support group to help the ailing developers. The cases of suicide by developers have been on rise from the past three to four years. A step to prevent this needs to be taken, or else it is a difficult road ahead."
Developers have borrowed huge amount of money not just from institutionalised firms but even from private lenders. This is causing a lot of burden on them. "This is the second suicide in a year. In some cases the government agencies are at fault, and in some the builder is at fault. In many cases financers dictate the terms, and charge 36- 60% interest on the land that they have sold or leased to the developers. The general perception is that the builder is earning high profit, but the truth is the whole system has collapsed, and builders are a soft target," said Manohar Shorff, a developer from Navi Mumbai.
Shah also claims that developers are in tremendous pressure and there is a need for a counselling system. "Most of the builders under stress. To get over this, we need a counselling system. We need to send out a message to those in a fraternity that we as an association are there to assist on tackling a crisis situation. We must formalute this at earliest," said Shah.
This is second high profile suicide, involving a developer. Before this, Suraj Parmar, a developer from Thane had shot himself on October 7, 2015. His death had triggered a debate too. Developers had united and came together to discuss the issues plaguing the community. However, years later there is yet another suicide that is staring at the developers who are considered powerful by common public.
A senior police inspector of Matunga police station, Bharat Bhoite said, "Preliminary investigations reveal that Savla was suffering huge financial loss and was under depression. We have searched is residence and no suicide note has been recovered so far. On Wednesday, we had registered an accidental death report. The matter is still under investigation."
PAST CASES OF BUILDERS’ SUICIDE
- July 10, 2019: Builder Mukesh Savla, 56, commits suicide by jumping off from 15th-floor of his residence in Matunga
- January 3, 2019: Sanjay Agarwal (57), founder of Sanjona Builders shoots himself with his licensed revolver at his office in Chembur. Project delay blamed.
- May 9, 2016: Navi Mumbai builder Raj Kandhari (43) commits suicide by shooting himself at his 11th floor residence in Raj Uday building.
- January 17, 2016: Mohan Group’s Amar Bhatia is allegedly run over by a train near Ambarnath. He has sent a text message to his cousin and uncle saying he is committing suicide
- October 7, 2015: Suraj Parmar, president of the Thane unit of builders body Maharashtra Chamber of Housing Industry (MCHI) shoots himself at a construction site office in Thane.
—COMPILED BY DNA-RESEARCH N ARCHIVES
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