Dewa Project: A glimmer of hope

KOCHI: It’s been a wait for nearly 13 years. The legal battle by the 450-odd investors of the super-luxury project of Dewa Projects on Marine Drive, Kochi with the project promoter K Venugopalan Nair, a Kuwait-based entrepreneur, may finally come to an end in a month or so.It is learnt the three groups including the Bengaluru-based real estate developer Hebron Properties and a hotel group are keen to buy the property put up for auction by a consortium of 13 banks led by Union Bank of India. The banks had already auctioned the two plots of Dewa Projects -- 4.8 acres to MA Yusuffali of Lulu Group and another 11.9 acres by Puravankara Projects, after Dewa defaulted on the Rs 600 crore loan.

A settlement eluded on the remaining 7-tower-project, where construction began on a 6-acre plot for 605 apartments after Venugopalan Nair challenged the deal, which was almost clinched in favour of Hebron. 
Jacob Xavier Kayalakakath, the secretary of Dewa Investors’ Association, said he’s hopeful of the court settling the matter in favour of the investors, who have put their hard-earned money to book apartments in the 2005-06 period. “There are 605 apartments and if you look at the bookings there will be 450 customers as some of them have booked in a combo of 2+2 and 3+2 to combine the flats into a big apartment,” he said.

While a large section of investors would want to continue, there are others who would be happy to get the advance money paid.  “It has been my father’s dream to stay in a Marine Drive apartment facing the sea. Over the past several years, I’ve been struggling to find money to pay for his treatment. I would be happy if I get my Rs 29 lakh, which I paid as an advance,” Rakesh T S, an investor from Thrissur.

Others who have the money believe it’s a good investment, despite the long wait as the price of the area has shot up from Rs 5,500 per sq ft to over Rs 10,000 per sq ft. Also, the site for the Dewa Project, the association believes, is far better than the other projects nearby. “We have a reputed builder ready to execute the project on our terms and have the money to pay the banks. We are hopeful the court will consider this in our favour,” said one investor.

Meanwhile, Venugopalan has challenged the auction of the plots to Puravankara and Lulu at the Debt Recovery Tribunal (DRT) stating the money received was very low compared to the market rate. 
Even the Dewa Investors Association has challenged the auction stating the banks should agree to auction the 6.3-acre plot housing the 7-tower project at the same rate. “Considering the plot already has a concrete structure, the rate should be lower. We will agree if the banks allow the auction to go through at the rate set for Puravankara and Lulu,” said an officer at the Association. 

While Lulu paid Rs 123.77 crore (4.8 acres), Puravankara (two plots of about 11.9 acres) clinched the deal at Rs 203 crore. After waiting for more than a decade, the coming months will see the court deciding the final outcome, as Venugopalan failed repeatedly to bring money or partners into the project. “In the initial phase, there were several reputed companies willing to partner and revive the project. Now, 2018 hopefully will see a new builder completing the project,” said an investor.

We have a reputed builder 
ready to execute the project on our terms and have the money to pay the banks. We are hopeful the court will consider this in our favour - an investor

It has been my father’s dream to stay in a Marine Drive apartment facing the sea. Over the past several years, I’ve been struggling to find money to pay for his treatment. I would be happy if I get my Rs 29 lakh, which I paid as an advance - Rakesh T S, an investor from Thrissur

There are 605 apartments and if you look at the bookings there will be 450 customers as some of them have booked in a combo of 2+2 and 3+2 to combine the flats 
- Jacob Xavier Kayalakakath, secretary, Dewa Investors’ Association