Shock for homebuyers as builders start cancelling bookings | india | Hindustan Times
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Shock for homebuyers as builders start cancelling bookings

india Updated: Sep 19, 2012 12:39 IST
HT Correspondent

The ordeal of homebuyers in Greater Noida West (Noida Extension) has not ended yet. Now, the builders in the area have started cancelling old bookings of those investors who are unable to pay their monthly instalments.

Despite an assurance from the Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR, about 12 bookings have been cancelled till date. Homebuyers have alleged that the developers in Greater Noida are not following the directions of CREDAI.

CREDAI is a regulating body of real estate developers throughout the country and NCR builders are members of the organisation.

On Tuesday, the Noida Extension Flat Owners Members’ Association (NEFOMA) decided to stage a protest at CREDAI’s office in Delhi on September 21 against the builders on the issue.

“Banks are still apprehensive and have not resumed loans to buyers, who had got their loans sanctioned before the Noida Extension crisis started. Banks are not even sanctioning loans to new buyers. So we are unable to pay builders monthly instalments. The builders cannot cancel bookings as buyers are not at fault,” said Vijay Trivedi, deputy chairman, NEFOMA.

“All developers are putting pressure on buyers to either pay 10% more and resume instalments or face cancellation. We are being harassed,” added Tivedi.

“The builders are not paying any heed to CREDAI (NCR) directions. They openly refused to obey the directions,” said Annu Khan, president of NEFOMA.

“NEFOMA is in contact with CREDAI India’s vice-president Gitambar Anand. We had written our problems to them, but we did not receive any reply from them yet,” he said.

“Builders have started sending demand letters to buyers. Besides, buyers are being threatened too. They are told that if they do not pay within a week, their allotment will be cancelled. Some builders have demanded interest,” Khan said.

“Some members of NEFOMA had met the CREDAI (NCR) vice-president, Anil Sharma, a few days ago. He had promised that existing buyers’ bookings will not be cancelled and demands will not be raised till banks start giving loan,” he said.

The Greater Noida authority CEO Rama Raman had recently appealed to farmers not to stop construction activity.