I am sure you all have heard of the builder “Apple A Day”, especially from the news papers referring to them as “Apple Scam”. I wanted to write this post because the media is playing to our emotions and giving us a totally distorted picture.
The owners of “Apple A Day” has been portrayed as cheaters, the media reports as if their plan itself was to get money from people and cheat them. But is that the truth ? Is it just another business failure ?
“Apple A Day” is a builder, just like any other builder they also play with other peoples money. Builders announce a project, collect money from people and then only they start building it. Its almost as if the person who buys the flat is investing in the company or giving them a loan.
“Apple A Day” owners being cheaters is highly unlikely, they are simply bad business men who could not properly manage their business, its cash flow and hence could not complete projects in time. They failed to keep promises, and they breached a written contract. For that should they be treated like this ?
Lets take the case of a car loan, after a few months if someone fails to pay the EMI will you call them a cheater ? Will you treat him as if he took the loan with the only aim of cheating the bank ? He is simply a person whose plans went wrong. And this could happen to any of you anytime. There are provisions by which the bank can get its money back.
We pay taxes, we get many promises and most of them are not delivered. Whom will we call a cheater for this ? Many of you have invested in the share market, if such a company goes bust will you say that the owners cheated you ? Will the media portray as if its a planned scam ?
We all are trying to promote entrepreneurship in this state, if this is how we treat a failed entrepreneur I dont think many will come forward. The government should create a legal framework to protect the interests of the common man who buys flats and apartments, there should be a mechanism to make sure that the projects are either delivered or the money is given back with interest. Parading a failed entrepreneur like this is not going to help, no matter what the reasons for the failure are.
To add a bit spice to all this, is it possible that some other builders were also involved in the failure of this company ? Could is be possible that a few competitors played their cards well to see that this company does not take off. In the business world there is no mercy.
Oh God!!! How stupid are you . Can’t you think objectively? Its not a dotcom burst . Plain broad daylight swindling of money. For the sake of arguing I will though this article ain’t worth nothing just the trash box.
1. You have just portrayed it as another failed venture. Let me tell you this the people who invested in this didn’t expect higher returns but products. So all that guys had to do was build them flats. No investment involved no returns expected . No worry about futures trading.No internal trading . No bulls nor bears. Clear. Its simple as I give you money you promote me on the social media. Buy sell. Nothing more nonthing less. Don’t take it on an investment level .When you mean investment its higher returns. Here no higher returns just get me the damn house.
2.They bad business men ? How easily said. This is not A Nokia Microsoft deal to be termed bad and the stocks of Nokia crashing. Yes the flow of cash was a problem it flowed from the people to the builders pocket didn’t go beyond that. Just stayed there.
3. Well the bank is making an investment for higher returns. They are not buying when they give you loans Kenneycha. Its the people who take loans are the buyers. Get the difference right. Now here who is the bank and who is the people? Banks don’t give you loan just like that. You have to sign on tons of paper and even blank paper. They check your liquidity and then give you loans. At least the bank can take your car back and sell it. Even if it means a bit of loss. Here? The flow of money was just goddamn one way. Tats it.At least You buy a car when the bank gives you loan cause the bank gives you a DD payable to the motor company so that you can’t use it for anything else.
4. Yes there are have been ponzi schemes the world over . Thats why the investors are requested to read before they invest. Aren’t they? But again you have not got the difference. In stocks we don’t invest in the end product of company we invest in the company assuming their products take off.But the products cater to a larger group set than the investors. SO company may crash based on the failure of product. Here people did not invest in Apple a day they invested in a house which Apple a day promised . Its like buying from a shop the only thing is you pay it in advance. Pakshe nale tharam ennu pranju patichu. There was no product to show “nale”. Avar athukonde putadichu.
This is not failed enterpreneurship. Athum real estatil enterpreneurship . Thenga. Simple greed. First get the definition of enterpreneurship right. Entrepreneurship is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”. Oru flat paniyan any innovation? Its being build since the 1930′s.
the last one well too many Movies. Cut on them ..
The reason for such a lengthy comment is since you being an entrepreneur it saddens to see such irresponsible, non committal articles.
Comment by Jayakrishnan Unnithan — June 30, 2011 @ 8:20 am
http://www.consumercourt.in/residential/54283-cheated-apple-day-properties-kochi.html
What you have for these people? Sorry dudes failed entrepreneurship? Better luck next time? Pathetic.
Comment by Jayakrishnan Unnithan — June 30, 2011 @ 8:26 am
Every realestate company operates the same way.. what we need is a set of laws to protect a buyer from possible company collapse. All I am against is the media treating the Apple a Day owners as if they planned all of this.
Comment by Kenney Jacob — June 30, 2011 @ 8:31 am
Small doubt.What about Ramalinga Raju of Sathyam?? Failed entrepreneur??, cheater?? or fraud???
An Entrepreneur fails when he cheats or commits fraud…
Comment by sujith john — June 30, 2011 @ 11:38 am
In sathyams case.. its fraud cos it was intentional.
Comment by Kenney Jacob — June 30, 2011 @ 11:39 am
read through the post and the replies, well i’m no person to judge that, but one thing i agree upon is these days media is playing villain. simple example is when a travel bus ( doubted to be Kallada travels ) met with an accident in which 9 people died, the media was soo keen in hiding the bus agencies details just to keep their business safe. If the news was like some girl or boy got into some trouble, the media would have harassed ( done ‘thejovadham’ ) of him/her leaving nothing but a reason to commit suicide for him/her.
Whom to be complained about, coz these media is just utilizing the cynic and sadist attitude of us. We need to look into issued with our own view ( that too an educated level of thinking ) instead of just grasping all from others and vomiting it as our own view.
Comment by Sumit Asok — June 30, 2011 @ 12:07 pm
‘Mallu men are group of people who think they are genious when they are not ‘ — the dialogue was something similar to this that was said in the intro of ‘Urumi’ as quoted from Vasco Da Gamas diary.
And we are still proving this to be true ..
–> Manchiyam
–> Adu ( Goat ) Farming
–> Jyothis lottery
–> Santhosh Madhavan
–> Bizzare
–> Aryan infoway ..
The list goes on… Hallelujah
Comment by deeps — June 30, 2011 @ 6:30 pm
Kenney made a point on how business works – down payment on a flat is like pre ordering a car. I agree completely – but we can’t give the firm THAT loose a leash!
Of course you are given a tentative date of delivery – a default on this doesn’t make you a cheat … but a lack of proper follow up in case of a foul up DOES>> (I still haven’t called them cheats – bad business men – maybe!)
In the Apartment Business – the success of the project HINGES absolutely on selling ALL the apartments/units BEFORE you start construction.
Now the AaD New Cochin project at Aroor was HUGE – very ambitious – anyone who spent two hoots on the offer will know that!!
The cards came crashing down after the sales response was not as enthusiastic as the sales pitch and marketing team would have liked. Not many people bought into the concept and the location…
AaD is probably still hoping that they can stave off the bad publicity, sell the rest of the units and restart the project.
It was a case of three mismatches ::
“Supply and demand” – rather than the other way around
“Unrealistic timelines for delivery”
“Over confident / incompetent sales team”
AND
Lack of subscribers to the “vision” (???)
Comment by Hari Krishnan Somanath — June 30, 2011 @ 10:31 pm
But they could have completed at least one project ?
Comment by dinu — July 3, 2011 @ 1:36 pm
There are many unhealthy practices in the real estate industry.You can always blame on the govt for not having a vision / policy about the industry.But how good are those in the media who does conducts even interviews of the promotors wen the sales were going strong.Paid news is a reality where in tv programs of business news, home decoration etc. interviews of such people are given.Media has enthusiasm in giving maximum coverage to these fraudsters through their programs and not to mention ads.
And media knows only after everything goes bad.For example in classifieds of newspapers there are lot of scams listed.But when a genuine person advertise the newspaper checks and sniffs him as if he is yet another scamster!
Megafrauds like these are here because we people are susceptible to network marketing, MLM, money back schemes, thekku manchiyam, Jyotis, LIS etc..
Atleast govt cud advertise that Lis Was bad just adter the TV ad and near to that of Lis Print ad and educate the public about the scam before it happens.
Comment by Maneesh J — July 4, 2011 @ 6:32 pm
swendham kasu aanu poyathenkil ee nyayam adikan iyalku pattumayiruno??? thanne kuttam parenjitu karyam ila amma marichalum undalo randu abhiprayam nammude keralathil,,
Comment by abhi — July 23, 2011 @ 12:43 am
Well said Kenney. Not sure how long it will take for the stupid traditional media to recognize entrepreneurship . As you said it is just that Business Planning and execution did not go well as expected and this can happen to any Business.
Comment by Sanjay — August 8, 2011 @ 8:50 am