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Homebuyers Accuse Auckland Developer Of Selling Unfinished Homes

Amit Kumar bought a home off the plans from Eco-Smart Homes. Photo courtesy: Lawrence Smith/Stuff

A group of homeowners on Rongomai Street in Helensville, Auckland, are voicing their frustration after purchasing homes that they claim were delivered late, unfinished, and with unexpected additional costs. Stuff reported. The homes were developed by Eco-Smart Homes, a property development company led by director Ritesh Mani, who has previously faced similar accusations from another homeowner in 2022.

Mani, however, defends the delays, citing significant setbacks in the Helensville project, including the theft of over $300,000 by a builder who subsequently fled the country. He asserts that efforts are being made to resolve the issues and ensure homeowners are taken care of, but disagreements persist over construction delays and additional costs, such as water connection payments.

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Amit Kumar's Struggle

Amit Kumar, who purchased a home and land package from Eco-Smart Homes in June 2022, reports that construction on his home did not commence until ten months after the purchase. Despite making six out of seven scheduled payments, his home remains incomplete, with landscaping and flooring work still pending. The final payment, tied to the home's code compliance certification, has been delayed, and Kumar says communication with Mani has ceased since May.

Mani acknowledges the unfinished work on Kumar's home and hopes to address the issues soon. He also claims to have compensated Kumar $20,000 for the delays. However, the placement of a watertank in Kumar's yard has caused further contention, with Kumar wanting it moved and the developer insisting it is in the most logical location.

Kumar has also been asked to cover a $36,500 Infrastructure Growth Charge (IGC) to Auckland's water provider, Watercare, a cost he argues should be borne by the developer. This charge, he claims, was not mentioned before signing the contract and was only raised after the construction was nearly complete.

Similar Concerns from Other Homeowners

Kumar is not alone in his predicament. Six other homeowners on Rongomai Street have reported similar issues, including construction delays, additional costs, and unfinished properties.

Junius Dimasuhid, who purchased his home in 2020, faced delays due to the Covid-19 lockdowns, and construction did not begin until January 2023. Dimasuhid moved into his home in November 2023, but issues such as incomplete fencing and a lack of water connection remain unresolved. He, too, was unaware of the IGC costs until after signing the contract.

Simon Paul, another homeowner, has yet to move into his house due to a lack of water connection and incomplete fixtures. He has withheld his final payment and is considering taking group legal action against Mani, though he acknowledges the challenges of such a move.

Developer's Response

Ritesh Mani, director of Eco-Smart Homes, expressed regret over the delays and challenges faced by homeowners. He cited several factors contributing to the setbacks, including the theft of funds by a builder, flash flooding in Auckland in early 2023, and the collapse of two building companies that Eco-Smart Homes was working with.

Mani maintains that the responsibility for the Watercare IGC lies with the homeowners, as per Watercare guidelines, and claims to have reminded clients of these charges as their homes neared completion.

Eco-Smart Homes, founded by Alistair Campbell Austin in 2017, has faced criticism before. In 2022, the company was accused of delivering an incomplete home in Glenbrook. Additionally, Mani was involved with Tribeca Homes, a failed development company that went into liquidation in 2015 after failing to fulfil multiple home building contracts.

As homeowners on Rongomai Street continue to face challenges, the resolution of these issues remains uncertain, with some taking matters into their own hands to complete their properties and secure the necessary compliance certifications.

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