It is quite common that developers and builders borrow from the lenders at ABNORMAL interest rates ( minimum with security (property documents-gold-diamond) is 24% per annum and it goes up to 60% per annum and for immediate (emergency requirement) it is Rs.1,000/- per lakh PER DAY and works out at whopping Rs.3,65,000/- interest per year for the capital of Rs.1,00,000/-.
The best part of these type of transaction is the interest paid by the developers is not from his pocket, it is collected from the BUYERS OF PROPERTIES.
The lenders at such exorbitant rates of interest usually have a criminal background, international and national anti-social elements along with political influence, have the muscle power to influence the investigation and thereafter GET favourable judgements TOO.
In the BOWRING INSTITUTE incident, TWO TOP builders names appear or doing rounds and may be subject to enquiry soon. There are many builders, whose name has not appeared on the list.
There are many ( METER – INTEREST) DAILY, WEEKLY, AND MONTHLY transactions conducted regularly and is more visible in the film and real estate industries.
Majority of these lenders are from other or neighbouring states.
It is always safe and good to deal or transact of buy from a DECENT AND DIGNIFIED builder or developer, who does not have anti-social and terror links.
Many illegal or unauthorised construction is not generally financed by the Banks and therefore, such builders or developers avail loans from these NOTORIOUS sharks at exorbitant interest rates and the ultimate victim is the BUYER OF SUCH PROPERTIES.