ST : Row over sales pitch with pilgrimage twist

Feb 21, 2010

Row over sales pitch with pilgrimage twist

A real estate investment firm is drawing controversy in the Malay community by offering lucky draws to go to the Muslim holy land, in its bid to lure investors, Berita Harian reported yesterday.

The company, Amanah Nusa Indah, or ANI, offers one lucky draw chance to each person who attends its sessions to sell plots of land in Chennai, southern India.

The land is being sold at $1.20 per square foot (psf), and investors must buy at least 2,700 sq ft of land - about the size of two five-room flats. This piece of land will then be joined to those bought by others to become bigger plots, BH reported.

The controversy has been caused by the offer of sending potential investors to umrah - a minor pilgrimage to the Muslim holy cities of Mecca and Madinah.

'(Why don't they) just say they want to sell investments? Why use the umrah package to sell something?' Ms Sarah, an investment officer, was quoted as saying by the newspaper.

Another person, Ms Hawa (not her real name), became suspicious when she was told by ANI that she had won a package to the holy land, but was asked if she had a credit card. She was also told to go with her husband for an interview session.

'What has the umrah package got to do with a credit card? Why go through the interview?' Ms Hawa asked.

At ANI's office in Orchard Road, its chief operating officer, Mr Jaafar Sani, said the lucky draw was a sales gimmick.

He said of the five people who have won the umrah packages, only two were investors. The other three came and listened to sales presentations, he said.

'At first, people were suspicious. But after the first group went (for umrah), everybody wanted (our service),' he said.

It was BH's understanding that there were buyers who had paid between $3,200 and $15,000 for the plots of land.

Mr Jaafar said there were risks to every investment, adding that he could not guarantee profits. Investors must be prepared to wait five years, he said.

To ensure that the Chennai authorities do not take back the land, he said every investor had been given a land grant and a guarantee in the Tamil language by ANI's partner, who is from Chennai.