Deepak Shenoy, the CEO of Bengaluru-based financial analytics firm Capital Mind, has narrated a distressing and personal ordeal. In a post on Twitter, he wrote about the harrowing time his family had to go through while trying to evict a defaulting tenant from their property. Shenoy’s mother leased a property to a tenant. However, the person not only refused to pay rent but also employed fraudulent tactics to retain possession of the property. For two years, the Shenoy family found themselves entangled in a legal battle, involving frequent court visits that drained their resources and emotional well-being.
The tenant retaliated with a counter-case, falsely accusing an intimidating individual’s involvement, further complicating the already complex process. To their dismay, it was discovered that this tenant had a history of exploiting other property owners with similar deceitful tactics.
The intricate legal complexities and procedural delays added to the family's distress, resulting in a seemingly unending wait for a court order. With hearings every two months, Shenoy's mother diligently sought justice and the rightful eviction of the tenant. After finally securing a favorable court decision, the process of executing the eviction encountered further hurdles, stretching their struggle.
The tenant refused to vacate the property until police intervention was sought. After a long struggle, the tenant finally left the property, just a day before the court ordered them to leave. The Shenoy family was left to deal with the emotional aftermath and inconvenience caused by the tenant's obstinate behavior.
This experience had a profound impact on the Shenoy’s family’s perception of real estate investments. Recognising the high risks, complicated and long legal battles, and the potential involvement of local troublemakers, they made the difficult decision to divest entirely from the real estate market. Shenoy's mother sold all her properties, retaining only one as their primary residence.
While real estate has long been perceived as a conventional path to wealth creation, this story gives an understanding of the associated risks.
Shenoy passionately advocates for exploring opportunities in financial markets, where potentially higher returns can be achieved with significantly lesser hassle and risk. As India's economy evolves, he emphasises the need for investors to diversify their portfolios and consider alternative avenues for wealth generation.
