Quality Developers by ashrafp


									Quality Developers/Construction Companies
I can relate many stories about foreign investors being burned in India. What is not typically known is the
amount of unethical behavior by developers and construction companies as it relates to Multi National
Corporation (MNC) tenants. For example, large deposits are taken by developers when a tenant signs on for a
commercial lease. That deposit guarantees the contract between developer and tenant.

What we have found and you need to avoid, are developers that do not follow contracts and worse hold the
tenant in limbo (by stopping work or tenant improvements) until the tenant agrees to the developer's new (and
thus more lucrative for the developer) terms. We have also seen developers finish the work but not obtain a
building occupancy permit. With out an occupancy permit, the tenant cannot legally move in. As one MNC
tenant related to The India Street, "the developer held us hostage until we paid them an extra fee for 'services'
related to construction."

Turn to organizations like CREDAI (Confederation of Real Estate Developer's Associations of India) that
promote ethical codes. They will also provide their member track records which will allow you greater
visibility into your due diligence.

Pradip kumar Chopra
Executive Board-CREDAI
Tel +91 033)24757896/6406

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