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Buyers unnerved despite assurances

india Updated: Jul 16, 2011 00:36 IST
Darpan Singh
Darpan Singh
Hindustan Times
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Builders have said that buyers who have booked flats in projects planned in Shahberi village, where a court verdict has quashed the acquisition of 156 hectares of land, will be relocated to some other place or refunded their amount with interest. But the assurance has not calmed the nerves of those who have invested in the extensions of the projects affected by the court order.

Supertech’s Eco Village Phase-2 in Shahberi village has been affected. The buyers have been offered either refund or relocation. But Phase-1, in the bordering Bisrakh village, is not affected.

“And this is where problems for buyers like us start. I have booked a 2-BHK flat in Phase-1. Technically, I am not entitled to refund with interest. Instead, a part of my investment will be deducted if I want to exit,” said Prashant Kumar.

“Once the Phase-2 land is acquired by farmers, who is going to stay on in Phase-1? I have invested Rs 21 lakh and will have R2 lakh deducted if I choose to move out,” Prashant added, who leads a forum of Noida Extension flat buyers.

“Even otherwise, farmers in the area where Eco Village Phase-1 is coming up have moved court seeking quashing of land acquisition,” he said.

Meanwhile, Supertech’s managing director RK Arora did not take the calls made by HT. Sasidharan K, who has booked a 3-BHK apartment with Mahagun, said, “The builder was developing its project in two phases. The independent villa part has been hit by the court judgment. The high-rise part is said to be safe. People would not want to stay on in that unaffected part too, with builders leaving and farmers getting their land back. The builder is deducting part of the total house cost in case of refund.”

Amit Jain, director of Mahagun, refused to admit that the high-rise part (Mywoods) of the project is affected — even practically. “This project is safe. The construction is on. Those seeking to move out will have 10% amount deducted,” he said.

Jain said the villa part (Myra) was affected and the amount was being refunded to buyers with 11% interest.

Besides, there have been allegations that some builders were not refunding the amount along with interest — and even taking of deduction — those buyers whose investments have been hit by the court order.

The Confederation of Real Estate Developers’ Association of India (CREDAI) vice-president (NCR) Anil Sharma said, “We are launching a helpline on Monday. The buyers can register their complaints, even online, with us.” “Our code of conduct will be ready by July 31. All complaints will be addressed,” said Manoj Gaud, president (west UP), CREDAI.

“The builders have been told to refund all affected buyers (not willing to relocate) with interest,” said Greater Noida CEO Rama Raman.