Tuesday, June 26, 2012

Real estate developers & their fraudulent ways

Real Estate Developers in India, have so many methods and means by which to commit fraud that even an epic as great as Ramayana would seem a short crisp story in front of the gargantuan chronicles of cheating, breach of trust, deficiency of service etc archived with not only the Indian press but also the archives of our courts. The fact that each real estate developer is a Ravana, either self made or helped in creation by the inadequacies of our regulatory mechanism, which is the bureaucracy.
Home-buyers, irrespective of which state &city they belong to book their homes, which category of home they have bought ( standard, semi-luxurious, luxurious home), which type of real estate developer they are dealing with ( big, medium or small) have to face enormous challenges in form change in specification of layout of the residential complex, inferior quality of construction, change in dimension of the flats, additional costs demanded at the time of possession under unethical heads like Electricity meter charge etc, common area sold to third party, selling unsanctioned residential townships and later after using customers money for years scrapping the projects, delay in construction and possession... the LIST IS NOT EXHAUSTIVE....here; under mentioned is an interesting fact brought to light by non other than TIMES OF INDIA on 25/06/2012. Please spare time to go through, so as to know and understand the unethical practices of unscrupulous Developers that are not limited to any one area of operations, where ever they operate, in which ever city or state they function, they are driven by greed which in turn makes them to take up such dreaded anti-customer & unethical practices.

Noida builders get payment notice
Purusharth Aradhak TNN 

Noida: The Noida Authority has issued notices to 44 developers for defaulting in payments due in lieu of land allotted to them for construction of group housing societies. Earlier, the Authority had sent several reminders to the builders, but after not receiving a positive response the notices were issued. Officials have set the deadline of June 30 to deposit the dues and, if they do not follow the instruction, then the Authority may cancel the lease deeds.
    This move of the Authority may hit homebuyers hard as they may not be able to get their homes in time if work is stopped or lease deeds are cancelled. The dues are to the tune of Rs 1,407.89 crore.
    Officials said developers only pay a certain percentage of the price of the plots allotted to them and the remainder has to be paid in installments along with interest. Senior finance and accounts officer, VK Jain, said, “As per norms, plot owners have to pay 11% interest, but if they default a penalty is charged and the rate is hiked to 14%.”
    “The builders have repeatedly ignored our reminder letters. We have now decided to take stringent action against them,” said a senior Authority official.
    The builders who have defaulted in payment include those who were allotted plots in Sectors 44, 45, 46, 50, 61, 74, 76, 77, 78, 93B, 107, 113, 115, 117, 118, 119, 120, 121, 137, 143, 143B, 168 and 144 in Noida. The developers include well-known ones like Gardenia AIMS, Omaxe Buildwell, Ajnara India, Antriksh, Skytech, Amrapali, Unitech, Ambience Projects and Infrastructure,
Imperial Housing Venture, Logix Infrastructure, Sikka Infrastructures, Three C Estate, Opulent Infradevelopers, Paras Seasons Haven, Sethi group, among others. TOI has a copy of the notice that has been issued by the Authority.
    Noida Authority GM (group housing), DB Malik, said the developers were sent notices after the accounts department gave him a report stating despite several notices, the developers had not paid their dues. “We had given them ample time to pay their dues, but they did not heed out earlier correspondence,” said Malik.