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[Resolved]  IL& FS Milestone - 1 — Real Estate Fund Harrasment

Dear Sir,

I wanted to bring to your notice the kind of problems which I have been facing from ICICI bank and IL&FS Milestone fund 1 people.

All this started in Nov-07, at that time there is this person from ICICI called Subhankar Majumder who used to take care of my salary account. I used to tell him to let me know if there are any good investment opportunities in the market and he had introduced me to 2 real estate fund (1) ILNFS Milestone Fund 1 and (2) Peninsular Realty Fund, he had assured me that this is a good fund for Rs.10 Lakhs each and insisted me to invest into it, for which I had told him that the investment would be big (20 Lakhs) and I would not be able to meet it, for this he told me that if I am not able to pay after the 1st or 2nd or 3rd drawdown, then I can ask for refund as there would be a corpus fund from which the company (Milestone) would be paying up people who are not able to invest (but there would be a fine).

I had accepted and invested in both the funds. The initial payment for Milestone was 3 lakhs which I paid and the rest was in installments.

In April 2008 because of the share market and real estate crash that I had to go though a major loss, which led to a lot of financial mess. During this period I was not able to make the next payments for milestone and wanted to contact Subhankar and let him know that I am not able to make the payments and wanted the refund, but to my surprise he had left the organization and it took me a couple of weeks before I could get in touch with the Shveta Malhan.

Once I got in touch with Shevta Malhan, I had to tell the whole story and all she had to say is sorry for the wrong information but I am try to get a refund. The thing went on from July-2008 to Nov-8008.

In Nov-08 I had to escalate it to Soumen Chatterjee and again had to tell him my problem and he told me he will take care of it and asked me to speak to him in a few days, but when I got back to him Dec or Jan-09 he had left the organization. Now I was stuck again and this time when I spoke to Shevta, she put me onto Siddhartha and Komal Parek.

Now I had to again for the 3rd time speak to him and tell him my problem and said sorry again and accepted the mistake done by Sudhankar and told me that withdrawal is not a possibility. At this stage I told them about my problem and he assured me that they will do something for me.

I kept waiting and waiting and waiting from Komal or Siddhartha but no one called but, out of frustration when I called them only answer I get is ‘Sorry we tried but nothing happened’. When I asked them to give me the number of Milestone people they gave me some number which does not work and I kept trying a trying, but all in vain.

Then in Sep to Oct 09 I had to send out a letter to Ved Prakash Arya of Milestone and told him the problem and the reason for my withdrawal (Lost a lot of money and I had to pay for my housing loan). At this time I got a call from Ashish Karwa and he told me that he will arrange a buyer and told me to get in touch with him after a few days. I told him this is very important.

After a few days and weeks I called him up and he never picked up. I called him up atleast 50 to 60 times and also sent him 5 to 10 messages but all in vain. He never got back to my calls or messages or emails. I got fed up and called the board line to speak to Ved Prakash Arya but again this time they gave me the number of Sumit Sumani.

When I called up Sumit Sumani, he blatantly told me refund is not possible even after tell him my situation and the financial mess I am in.

Then again I had to source out Mr. Ved Prakash Arya’s number and this time I called him up to speak to him. When I called him up he put me onto this guy called Apaar and told me he will take care of the whole situation.

Now Apaar after listening to the whole thing first told me refund is not possible, but he also told me that he will find me a buyer and asked me to wait for a few days. I keep waiting and in the meantime, my father had a heart attack and I called Apaar and told him the problem again and told him that the money was very important to me as my father is in the hospital; he told me that he will speak to the buyer and get back. I wait for a day and again call him up and this time Apaar gives me the number of the buyer and asks me to talk to him.

I speak to the buyer and he tells me that he is waiting for some calculation from Apaar and tells me to tell Apaar to send him an email. I do the same thing.

Next day I get a call from the buyer and he tells me that he needs some clarification about the refund. He tells me that he is trying to get in touch with Apaar and also asked me to tell Apaar to send him the response to the email he sent. I call up Apaar to tell the same and he picks up the call and tells me that he will call back. I wait for a couple of hours and send him a message I don’t get a response and when I give a call in the evening to ask him if he got the message and to tell him about the email. He tells me that he was in a meeting and if I keep continuing to call him he will be forced to ignore my calls.

He in the course of conversation also tells me that refund is only possible if the investor is deceased. This statement way made in such a way that this is the only option I had.

Even today I have not received any information on the refund.

I had to run from pillar to post for the amount I have invested. I was given wrong information; due to this I took this step on investing in something which is as bad as Milestone. Bothe ICICI and Milestone and not bothered about the investors concern and only mothered about the money they make.

I would like to know the steps how to file a case against Milestone and ICICI bank and get my refund.

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Aug 14, 2020
Complaint marked as Resolved 
Complaint comments  7 CommentsShareTweet


Dear Mr. Srinivas,

We're sorry to hear about your experience.

Please write to us with your contact details and account number at [protected] We'll contact you and work to address your issue.

ICICI Customer Service Team.
I would suggest that ICICI people get in touch with me.

Navneeth Srinivas
I have gone through the similar problems with IL&FS Milestone-1and have been told that I cannot ask for refund even though my term for the fund has been completed ( 3 years). IL&FS have extended the term by 2 more years without asking me and have not even told me they are doing it. Their Board Members are making ad hoc decisions as they go along. I cdo not want my investment to be handled by these people who have given me very poor returns for the past three years and have not done anything to improve their business prospects. According to the Law, when the term has been completed, they must refund the amount with earnings and interest when the investors demands it. Thier approach is to ignore the investor completely. Look at their Newsletter. It does not say anything about their plans to improve the returns. They keep blaming the global economy and write about the global economy which we all already know. I want my investment refunded to me.

I hope ICICI will take this up seriously with IL&FS and get it resolved.

- Suresh Doraiswamy
I too have invested in both Milestone fund II and India buildout fund totally 15 lakhs, by the advice of Mr Hemanth, the then wealth manager of ICICI bank of Tirupati. But so far, he is not able to tell me how to with draw my invested money. As ICICI Bank is responsible for this investment, I feel the same bank should find the ways to get our money back. Dr KLNarayana
I had invested in Milestone Fund I around 2008-09 and the company has been selling the properties from last 2 years.

The returns have been really pathetic. This company has been selling of all the properties showing a loss of around 20-30% - Selling price of property as significantly lower than the purchasing price even after holding the property for more than 6 years.

All over India the property prices have appreciated significantly in last 6-7 years and it is really hard to believe that the prime commercial properties that Milestone purchased in 2008-09 are now selling for a loss. I know that in some real estate transactions there is a cash amount involved and I am not sure if this company is honest enough towards its investors.

This in addition to the hefty management fees running in crores that Milestone charges its investors, and for what, for making losses.

To top it, there is no transparency into the running of this company. They have never published their books.
Real pathetic situation; Hard earned money was stolen in bright day light in terms of loss. They report rosy picture displaying gain % before all charges. End of the day, money for investor is HUGE LOSS. These people easily escape as there is no strict process involved. POOR INVESTORS are taken for ride.
I just now posted about MDS1 of this company.

I think they made a strategic plan of showing investors that there are no gains from property and we are unable to pay you returns, even property market were never so bad when they started selling property.

Will it be possible go for RTI approach and get all details of this fund and do an audit of the fund from external agency or else taking help from Govt. of India on this.

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