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Sobha Developers Ltd. / Dissatifaction from false assurances

1 India Review updated:
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Sobha Developers Limited in Bangalore is well-known for building quality residential properties. Their reputation is wide-spread in Bangalore. And so, when we wanted to buy an apartment we chose to consider a Sobha property. We looked at several properties built by Sobha and were impressed.

After elaborate financial arrangements, we booked an apartment at Sobha Sunscape in July. We were in fact not ready yet and needed 3-4 weeks more time so that we could arrange for the initial payment. The sales-person assured us he would extend the time and persuaded us to make the booking. As a family we were pleased we could pool in our resources and buy an apartment from a good builder. After the loan was sanctioned by the bank, it was a sense of achievement that everything was in place and we were realizing our dream of having our own home.

We made the initial payment to Sobha which was partly from own funds and partly from the loan. After about a month, we received the demand from Sobha for payment for the next slab. This was the starting point for the surprises. In addition to the slab payment, Sobha also demanded interest on delayed payments. Over the last few weeks we have had several communications with Sobha on this matter and to put it mildly our experience has been disappointing. As a result of the rigourous communications, Sobha partly reduced the interest charges. The sales-person has backed out from honouring the rest of his assurance.

On analyzing the transactions, we found discrepancies too. Our bank had disbursed a lesser amount per their recommendation after assessing of the project progress. Sobha mentioned they were correct in their demand. They wanted us to produce a letter from the bank with this information and promised to act on the same. After we produced the letter, they stated that they would not consider it. We felt deceived. Why did they want the letter if they were not to consider it? We noticed that in the cases where we had handed the cheque to their sales-person, Sobha had recorded it only on the next day. Hence, they charged the interest for an extra day. On one instance the courier was delivered on the Saturday, they recorded the transaction on Tuesday.

We expect honesty from reputed companies. Sadly, my experience with Sobha has been different. As a customer of Sobha, my interaction with their people has caused me disappointment. For a reputed company, Sobha is not righteous in its policies. While they charge the customer interest at 18% by reflecting delays, they exempt themselves from any delays. They carefully do not commit any slab dates, so no delays come upon them. To my frustration, when I offered to make future payments in advance to counter some of the interest charged to me, they refused to account the advance in the same way.

At the outset, in spite of being confident that Sobha will deliver to me an impressive apartment and in spite of paying a premium price for that apartment, I'm afraid their trivializing ways have tarnished the pleasure of owning a Sobha property. As Sobha's customer, I have been through a false assurance; a false commitment leading me to obtain information from my bank; penalties for transactions incorrectly recorded by them and subjected to unfavourable policies.

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  • Ve
      12th of Nov, 2007
    0 Votes

    Its not just about sobha, my view is that all realty companies are making hay while the sun shines and somewhere they maybe trampling the customers rights in this frenzy of real estate hikes..

  • Pr
      14th of Nov, 2007
    0 Votes

    This sounds scary to say the least... families pool in their entire savings towards purchase of a 'home' and money is not the only thing they need to bother about ... one also has to deal with unscrupulous sales personnel, customer service agents.

    Funny ... their Code Of Conduct (CoC)( is clearly stated to be applicable for its Board Members and Senior Management Personnel, and they seem to be following it to a 'T'.
    The sales and customer relation personnel are NOT governed by any CoC.

    I believe it would help if people with similar grievance get together and collectively discuss such cases with senior personnel of Sobha Developers. A scream may be ignored... not a blast.

  • Vi
      10th of Dec, 2007
    0 Votes

    who was this salesman whom u interacted with? Even i have booked in Sunscape recently.

  • Sa
      16th of Dec, 2007
    0 Votes

    I completely second your opinion.
    Hear this story now:

    I was supposed to book Sobha basil , about a year back. I went ahead , got all documentation done, put in the hard earned booking amount of 4 lakhs.

    To my dismay , Sobha couldnt furnish a couple of docs which needed disbursal of the loan. I had to wait for 6 months , and then decided to withdraw.

    That was a good decision , but Sobha has its conditions too. They cut off Rs 50,000 on my cheque. I was so unimpressed , i just wanted to get off their tantrums and false promises. Yes it did hurt me , but then i was moving to the US, and took that loss.

    In the future , everyone , pls read all docs before signing up.

    Last I have realized , a house is a liability. If its an Asset for me , it should be a Liability for the builder. Thats actually not so.

    Today , I believe that one should buy, when the markets are down. These builders who have risen the wave of good funding , will only goof up things, cause they dont care an iota about customer satisfaction.

  • Sw
      23rd of Dec, 2007
    0 Votes

    Hi Titansking, Thank you for your note. Though my experience started with their sales-guy, it has been the same with their CRM and Finance/ Accounts folks.

    I wish you good in your transactions with Sobha. But, do take care at every step...

  • Sw
      23rd of Dec, 2007
    0 Votes

    Hi S Acharya, That's exactly the point. We expect a company of good repute to be honest and just. Well, I know you must have been more than just unimpressed...

  • Sa
      23rd of Jan, 2008
    0 Votes

    Sobha Developers had promised to deliver Sobha Iris in March 2007 which got delay to September 2007 and then Feb 2008. In fact now it has been delayed to July 2008. I don't think they should be called reputed builders because a good builder would have done good planning. I'm not sue whether their quality is good these days. It used to be good in 2002 days when the demand was less. Conclusion is : Make sure you read the sale agreement properly for any delays etc. and look at their past one year track record. I would disagree if Sobha Developers are called reputed. I don't know about other properties but couple of friends got their possession on time but it was in 2005. May be there is a common problem in delivering projects on time these days. Hmmm.....After all it's an ugly business.

  • An
      28th of Jan, 2008
    0 Votes

    I have had a similar issue. I put down a deposit on the condition that they arrange finance for me (I am an Indian living abroad), the booking form said that they would take 0% in event of cancellation. However I found out that they rejected the booking form agreement, however they still went ahead and cashed my cheque. I cancelled before they cashed the cheque (it takes over a month for the transfer to happen from the UK bank) however they are still skimming off rs.75,000 from my deposit.

    This amounts to theft, so I am talking to the authorities to start up a fraud case against them. However, I would not recommending doing business with them. The Sales Manager Mr Anil (Bangalore) stated in front of independent witnesses that "as Head of Sales I have decided to return the full amount", despite which they are still scamming me for rs. 75,000.

  • Sw
      29th of Jan, 2008
    0 Votes

    Hi Saurabh, I checked the sale agreement after reading your post. Now, there is a mention of Sobha Developers paying up some amount per month in case there is delay in handover. Tell me, are you receiving some amount due to the delay?

  • Sw
      26th of Feb, 2008
    0 Votes

    Hi Anjan, Let us know the outcome of your efforts. Regards

  • Sa
      12th of Mar, 2008
    0 Votes

    Hi Swetasri, I'm not getting any money because I asked them to modify the apartment a bit (Kitchen). If there is any modification in the apartment, Sobha will not pay any compensation. In fact it seems this is the case with almost every builder. I'm okay if a builder delays 6 months to 1 year but it will be one and half year in case of Sobha Iris. They will have to compromise on quality to deliver the project and I'm already hearing about quality issues in Sobha Iris from our local yahoo group alias.

    Bottom line Sobha Developer is no longer a good quality builder. It is past now. You would want to check other builds and their history before making any decision.

  • Na
      2nd of May, 2008
    0 Votes

    I totally agree with the complaints posted here. Here's my story:

    I booked a flat with Sobha in Bangalore early 2007. My experience mirrors many of the comments made here.

    1. For one, it is supposed to be a “super luxury” series with good carpet area and ample scope for customization. But in reality, I was very disappointed with the fittings. For example, all the sanitaryware are in white no matter the floor/tile color. If you want to change them, Sobha charges an arm and a leg (see later on customization)
    2. Insist on seeing the Sale and Construction agreement BEFORE you give the deposit amount!! But, I bet the sales guy will dodge your request. There are lot of hidden clauses which make it totally a one sided agreement.
    3. Sobha hates to accommodate any changes! In fact, the construction agreement has this one sided clause which says that if you many any mods/changes from the original specification, they are not obligated to pay ANY compensation in case of delay in handing over, regardless of the how long the delay is.
    4. In spite of this, if you are bold and make any changes, they charge a hefty amount. It is actually a money making scam. For example, they charged 3 times the amount for upgrading the EWC (toilet) from Hindware white to Parryware color!!! And they are least bothered when you bring this to their notice. There attitude is: your neck is now in our hands, scream all you want!!!
    5. The project is already delayed. The latest dates they have communiated to me is July 2009!! This is at least nearly 1.5 years late!!!

    They have been blaming everybody but themselves for it. I feel they don’t give a damn about residential projects anymore… It is a necessary nuisance for them. Their focus is on commercial properties now.

    As far as I am concerned, Sobha is no longer the desired choice when it comes to residential real estate.

    My strong suggestion is for the customers to rally together and sue them in a court of law. I am sure we have a strong case.

  • Sa
      26th of Jul, 2008
    0 Votes


    I am ready to contribute to sue Sobha Builders in court of law. My case is similar and now they are asking me to pay Rs. 1 lakh as interest charges - which is increasing day by day (as I am not paying the same for the last 4 months - after I came to knew that there are interest charges on me).

    Those who all are interested please mail me and I will try to see how to go about it (currently I am in US and that is the major constraint for me).

  • Ve
      30th of Jul, 2008
    0 Votes

    Here are some more comments

  • Ja
      7th of Nov, 2008
    0 Votes

    Sobha is like any other builder, although they call themselves world class builder. They have sales personnel who have no commitment and promise moon to the buyer and disappear from the company. The employee attrition is main reason for customer grievance. Sobha Sunscale is supposed to be a Dream series project and they do not allow any modification like change of tiles etc. inspite of the buyer willing to pay the difference. As regards project completion, know one knows when it would be handed over. However, we promptly get the demand notices and even one day delay in realisation of cheque, interest would be charged. I don't what access road the sunscape project would have as today there is no proper road to the building from Kanakapura road or NICE road.

  • Ag
      20th of Feb, 2009
    0 Votes


    5 mins from Dasarahalli 8th mile is Sobha developers on tumkur road at the same distanc on hesaragatta road 5 mins from 8th mile i have one beautiful house in MEI Layout ( a pure residential area with big parks and play ground).

    well architected independent 3 story Building ready for Occupation by end of April
    2 bed room houe in each floor with 3 car park
    you can live in first floor and rent 2 floors which can earn you 13K per month.
    All top class materials with fully fitted wardrobe with top class carpentry

    Total cost of house 72 Lacs

    if you are interested mail me-

    Agratha RK

  • Ja
      24th of Feb, 2009
    0 Votes

    I am another victim of Sobha. I have booked a flat at Sunscape 3 years back and yet to get possession. What is worse, Sobha has unilaterally modified the agreement and is now requiring me to pay an annual maintenance fee of Rs.36k and sinking fund of 45k per year. This is complete contrary to what is provided in the agreement. Sobha is now selling the flats below the price at which i booked the flat 3 years back and i have paid the full amount. All the puchasers of Sunscape should protest against the unilateral attitude of Sobha and take them to the court.

  • So
      26th of Feb, 2009
    +1 Votes

    I can relate to this. I too have experienced many a things that have been mentioned here. There was a discripency in account- sobha kept telling me that 2 lacs issued by ICICI had bounced and kept charging me interest on this amount and it finally took over 14 months (after numerous calls and mails) to resolve. As you would expect the money was with Sobha.

    Another big issue is increae in charges on account of KEB and BWSSB, they have increaed it by 200% and refuse to give any details, single line answer - govt has increased and as a policy we don't disclose details.

    When i booked the apartment i objected to the clause on penalty incase of delay i.e. modification clause and the answer i got was unless you shift kitchen to bedroom or some thing of this order its fine. And now what i have not received 1.5lacs that i should be eligible for.

  • Ra
      23rd of Mar, 2009
    0 Votes

    I am also facing similar problem with Sobha developers. I have 2 major complaints. My fist complaint of leakage problem in the Sobha apartment(where I live) is pending for last 4 years. Everybody in Sobha keeps telling me that the leakage problem in the flat would be solved. For 4 years they could not solve it. The flat keeps leaking for last four years. Another is a latest problem. They keep charging huge interest without even having the agreement signed.

  • Ma
      15th of Apr, 2009
    0 Votes

    HUH thanks guys .. I was actually considering to book Sunscape .. I will have to think 100 more times now

    Thanks again

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