Omaxe fires 70 employees, cuts salary by 10%
Submitted by Manish Sood on Thu, 12/04/2008 - 06:42
Real estate major Omaxe has announced that it has dismissed 70 people and trim down salaries of its employees by 10% per cent on average as part of cost cutting measures, to beat the current slump in the property market.
According to the sources, wages of all employees except those who earn Rs 10,000 or less a month have been reduced.
The sources further revealed that Omaxe's consolidated net profit plunged to Rs 20.38 crore for the quarter ended September 30, 2008, against Rs 160.35 crore for the same period year-ago. Its total income fell to Rs 213.48 crore, from Rs 712.11 crore in the review period last year.
Another leading realty major, Parsvnath, had recently cut down salaries of its employees at top and middle level management by up to 20%.
According to the reports, the demand in the real estate sector, particularly in the housing segment, has plummeted significantly because of high interest rate and ongoing worldwide financial slump.
Ethics and Questionable Marketing Practices at Omaxe
The real problem facing OMAXE is of lack of ethical and socially responsible conduct. If Marketing and Restrictive Trade Practices (MRTP) commission of India were to investigate Omaxe, they would find that the company operates in a manner that can be best described as "deceptive and misleading". The challange for regulators of the industry is to prevent them from preying on unsuspecting newer clients - overseas - now that Omaxe has announced plans to go after the NRIs.
I am an NRI who has been badly burned by Omaxe and wonder, if there are others like me who thought they were conducting
a fair transaction with a company in the "new and open" India? Instead many of us ended up with a company that has no regard for the environment and is totally closed to disclosing information that is vital to their customers. Rather Omaxe is fixated on sales and collection of installment payments based on implied threats and false information. No advaned economy or a responsible government should allow such irresponsible industry practices.