‘Realtors take their cut’ | india | Hindustan Times
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‘Realtors take their cut’

india Updated: Jul 15, 2011 00:33 IST
Darpan Singh

The confederation of real estate developers’ association of India (CREDAI) on Thursday said builders — whose projects in village Shahberi have been stalled following a court verdict — have begun refunding the buyers with interest.

The real estate body said less than 10% buyers had sought refund and others wanted to be relocated. Builders claimed the Supreme Court verdict had affected about 6,000 buyers and they had received 500 applications for refund.

But most buyers are still not happy. Sasidharan K, who has booked a 3BHK apartment with Mahagun Mywoods, said,“The claims of refund with interest are mostly false. The number of buyers seeking refund looks on the lower side because builders are deducting money.” Some other buyers said builders were deducting 10% of the total house cost in case of refund. “In some cases, 10% of the total flat cost is more than the total investment made by buyers at the time of refund,” said another buyer.

Reacting to such claims, CREDAI vice-president (NCR) Anil Sharma said, “Buyers would get back all their money, including the costs incurred on home loan interest payments.” “No home buyer will be allowed to suffer. Everyone is being given the option to either shift to some other project or take a refund of the amount paid by them, including the payment toward interest on home loans,” he said.

CREDAI came out in the open and held a press conference after the Supreme Court commented that buyers had the option of taking recourse of legal remedies if builders refused to refund with interest.

Amrapali Buildtech, which accounts for about 65% of total affected buyers in Shahberi, has said it’s ready to refund buyers even outside Shahberi in Noida Extension without deduction.

As per the agreements, buyers will have to have a small part of their investment deducted in case they want to move out of projects not affected by any court order. Builders said with the money buyers have invested in Noida Extension, they will not be able to buy houses elsewhere.

There have been allegations that builders are delaying refund or are not clear on the quantum of interest in the name of studying the SC order and seeking legal opinion. Asked if there was any timeline for refund, Sharma said, “There is no timeline. The process has already begun.”

He claimed Amrapali Buildtech had refunded most of the money with interest. Amrapali Buildtech has the maximum number of affected buyers — 4000. Its CMD Anil Sharma said, “So far, we have made refunds worth Rs 10 crore.”