The much-hyped premium Purab Apartments of the Greater Mohali Area Development Authority (GMADA) coming up in Sectors 88 and 89 seem to have lost the faith of investors as many successful applicants have decided to surrender the apartments.
GMADA has been receiving applications from successful applicants, offering to surrender the apartments. The authority is mulling over how much amount they should deduct before the surrender of the application is allowed.
About 300 people have written to GMADA as they want to surrender the apartment till date. On an average, the authority is getting around 10 such applications daily.
Even as the number of applicants withdrawing from the scheme is increasing, the GMADA authorities are not ready to accept that they have failed to access the market for apartments in the region.
"The scheme did not find favour with the investors owing to the stringent conditions. We have managed to check speculators. The scheme was for end users only, and we have succeeded in achieving the purpose," said GMADA's additional chief administrator Parveen Kumar Thind while talking to HT.
Dismissing the argument that SAS Nagar is not ready for apartment culture, Thind said, "It is wrong to say that a growing town like SAS Nagar does not have a market for apartments. The market was studied extensively and we are of the view that the apartments market, though niche, definitely had demand."
GMADA executive officer (housing) Subhash Rana admitted that applicants were surrendering the apartments. He said, "Most of the applications received are from residents of Haryana. They had applied through multiple applicants without bothering about the stringent clauses. Now after the draw they want to withdraw."
He said, "The withdrawal will be allowed as per rules. The question before the authority now is about the amount to be deducted. According to the brochure, 2% of the earnest money is deducted in case an applicant withdraws before the draw; in case the applicant withdraws after issuance of the Letter of Intent (LoI), 10% of the earnest money is deducted. There is a grey area about the amount to be deducted if the withdrawal is done after the draw and before issuance of the LoI. The authority is to decide on this," added Rana.
GMADA floated the scheme for which it had received 6,500 applications for 4,500 apartments of different sizes. GMADA offered 900 one BHK apartments with a price tag of Rs 37 lakh and parking for a car, 1,800 two BHK apartments with a price tag of Rs 55 lakh and parking for two cars and 1,800 three BHK apartments with a price tag of Rs 69 lakh and parking for two cars. Before the draw was held, GMADA had already got about 100 applications from the applicants wanting to withdraw from the scheme.
GMADA has specified that there would be a bar on the sale of apartments till two years after handing over of possession, or five years from the date of issuance of LoI, whichever is earlier. GMADA officials said a five-year lock-in clause was introduced deliberately so that end users were able to benefit from the scheme. In addition to the multi-storey towers for flats, Sector 88 will also provide for upmarket sports infrastructure, commercial and entertainment space.