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HT Readers’ take: Check reality of your realty dreams
Investors put their life’s savings into buying a home, but often don’t research in advance about the builder’s credentials. Taking advantage of this, builders dupe unsuspecting buyers of their hard-earned money. To check this, we need a strict regulatory authority that can act against unscrupulous elements, say readers
RERA should act to protect hard-earned money of buyers
To reduce mental agony for buyers and curtail unfair practices by builders, GMADA must proactively come up with appropriate measures i.e instant registration of FIR by exposing the builders and promoters. RERA should not become toothless hence Punjab government must intervene to protect the hard earned money of buyers.
Gian Singh, Chandigarh
Legal tools in place to protect buyers’ money
The available legal tools to regulate real estate business in Punjab is so exhaustive and gives so much strength to competent authorities and government that there is not an iota of doubt that anyone can misuse buyers’ money or flee the country. Breach of trust is a criminal offence, 90-95% end users put in their hard earned money, raise loans to realise life’s one-time dream to own a house. So the government is required only to do introspection to find out what and where it has gone wrong to follow the prescribed processes and legal provisions and plug the loopholes to create accountability.
MS Aujla, via email
Stricter regulatory authority need of the hour
Right from allotment of land to allotment of built up dwelling units to the needy, there is a big nexus of promoters, government agencies as well as financial institutions. There are a large number of cases where innocent buyers are being fleeced on one pretext or the other. In the absence of any concrete solution, they are helpless as to which doors to knock on if they end up losing their money. There needs to be a permanent solution to this problem. There has to be will and intention to honestly implement the Acts framed by our legislative bodies. Besides, there needs to be a strict regulatory body as in the case of Insurance Regularly Authority and Telecom Regulatory Authority to protect the rights of the buyers.
SK Khosla, Chandigarh
Buyers must examine the veracity of builders carefully
One had always thought the GBP group was a reputed real estate group but the recent news that their promoters had fled the country was shocking. This news shows that the authorities should keep a close eye on real estate builders. Authorities should ensure that the promises of these builders are being fulfilled. People should be advised not to be fooled by beautiful images and look into the building projects carefully.
Saikrit Gulati, Chandigarh
Research thoroughly before investing in dream homes
Over the past decade, Chandigarh has seen a sudden boom of construction and ongoing residential projects in its periphery. The recent controversy regarding the GBP group has created tension in the minds of people who have already invested in their dream homes. To stop such incidents, people should carry out a thorough research on real estate projects before investing in them. Also, RERA should make it mandatory for each and every builder to upload their financial and legal documents on their companies’ sites. Transparency must be very important before starting any project/investment. Firms that have a history of duping people must be legally barred from working on any upcoming future development projects.
Sandeep Rawat, Chandigarh
Pay only security amount before start of project
The toothless RERA needs more powers, including judicial, to deal with all types of real estate regulatory matters effectively. To keep tabs on builders and realtors who fleece the buyers, they should be allowed to take only security amounts of ₹5,000 to 25,000 (as per the size of the flat and plot) at the time of starting the project. Full payment should be made by buyers only after completion certificate is issued by the RERA. The practice of bookings by developers or realtors should be banned and public will not be trapped and cheated.
Subhash Chugh, Chandigarh
Absence of tough regulator to be blamed
In the absence of a tough regulator and unwillingness of an average home buyer to get into expensive court proceedings that could take years, most builders – reputed or otherwise – have been shamelessly taking hapless home buyers for a ride. Builders avoid paying penalties for late delivery of possession by inserting smart clauses in thick apartment buyers’ contracts that most buyers don’t bother to read and later repent having no real recourse. Diversion of money collected from one housing project to another or for speculation in land deals jacks up land prices, and makes homes increasingly un-affordable to most end users. Delays also happen because builders divert funds. Plus they somehow avoid paying penalty. To check diversion of fund, the bill stipulates that 70% of the money collected for a project will be kept in a separate escrow account which can only be used for that project.
Vineet Gandhi, Chandigarh
Need qualified authorities to check anomalies
RERA was formed to control the malefic intentions and actions of property dealers and look after the interests of purchasers. But it has failed miserably due to lack of executive powers. To be effective, the authority should have a team of qualified engineers, architects, town planners, environmentalists and accountants. The authority should monitor the activities of the builders right from the time of purchase of land to the final sale of plot/flat strictly as per the laid out norms. Any violation or deviation must be checked at the first point itself. Only then can the menace could be controlled.
Sqn Ldr Manjit Singh Johar (retd), Chandigarh
Promoters dupe unsuspecting buyers and flee abroad
The real estate sector in our country is very opaque. Promoters lure potential home buyers with flashy advertisements all over the place. They promise heaven in the flats and bungalows but the reality is entirely different. We never find any scheme getting completed within time. Promoters take lakhs of rupees as advance from buyers and then when they become millionaires, they flee abroad. Real estate regulatory bodies, such as RERA, have failed to enforce the provisions of the Act and poor gullible buyers have nowhere to go. Even court-monitored projects are taking years to complete. The only way out of the mess and opaqueness is to create an Escrow account for every real estate project so that the money of the buyers is in safe hands.
Anil Kumar Yadav, Chandigarh
Choose carefully
The buyer should choose a good broker while buying any kind of property since the broker knows the sector inside out. A good broker plays a vital role as a matchmaker for both the buyers and sellers. So the government should promote this kind of system and keep on checking on unscrupulous brokers.
Jaspreet Kaur, via email
Shattered dreams, lost savings
There is a lot of development happening around the tricity. One can see lots of residential and commercial towers everywhere these days. Around 15 years ago, construction was very negligible. But now, construction of residential towers is a trend. What’s more, the rates are so high that a person ends up exhausting their entire life’s saving to purchase one flat. This makes it all the more important for RERA to keep its vigil up. Government must also certify trusted builders so that buyers can approach the right places.
Avinash Goyal, Chandigarh
Buy only ready-for-possession properties
Even if one has to secure a higher amount for housing loan, it is always safe to pay the full and final payment and occupy the allotted accommodation, instead of paying the advance installments and waiting for completion by the builder. To obviate the eventuality of builders fleeing investors, RERA will do well to seek bank guarantees of adequate amounts from the builders before granting approval to a builder to start any housing project, so that the interests of gullible investors remain protected.
SC Luthra, Chandigarh
Mandatory NOC after completion of flats
It is the duty of the government to verify the builder and check their credentials before giving nod to launch any real estate project. All the essential criteria, including green area, construction material used, safety norms, number of floors, occupied area, working of lifts should be checked from time to time to keep a check on the ongoing construction. In most cases, government officials don’t visit the construction site and give the nod without proper inspection. Sometimes builders have a nexus with government officials, and may bribe them to get a nod by bypassing norms. Government needs to keep tabs on such violations and bring transparency in the working by installing closed-circuit television cameras and recording every activity. Government should take feedback from flat owners to check if the promises made by the builder have been fulfilled. An app or website should be launched where flat owners can make their complaints directly without any hassle.
Abhilasha Gupta, Mohali
Investors, be cautious
The past ten years have witnessed Mohali and its peripheral towns of Zirakpur, Kharar and New Chandigarh becoming the tricity’s real estate hub. There are 500 residential and commercial projects in the pipeline. Eight of these projects are being developed by the GBP group. Recently, its promoters have fled the country, leaving 2,500 investors in a fix. They have sought civil and criminal proceedings against them for leaving the work midway. Panjab Real Estate Regulatory Authority(RERA) is expected to keep a watch and oversee the progress from day one till its completion but it has failed to do so. Real Estate (Regulation and Development) Act was passed in 2016 to address the grievances of the hapless buyers but it seems to be toothless. The investors should be cautious; they must have a written deal/memorandum of understanding on a non-judicial stamped paper and must obtain the required documents which establish the legality of the case. The buyers, then, can file a case in the court individually or collectively. This will deter the builders from looting the buyers.
Usha Verma, Chandigarh
Thousands fell prey, govt’s duty to protect them
Thousands of home buyers, who have invested in housing projects of various real estate companies such as GBP group, have knocked the doors of the Supreme Court for protection after being cheated of their investment. The court said it was primarily the government’s duty to step in to rescue them and protect their interests. These people have invested their hard-earned money. They are paying interest on home loans but are not getting their homes.
Sanjay Chopra, Mohali
Stop accepting one-sided agreements
It is a known fact that builders and buyers agreement is often one sided and always favourable to builders resulting in physical, mental and financial loss to buyers. Need of the hour is to have model builder buyer agreement to safe guard the interest of buyers from builder’s default. RERA authorities should also be involved in finalising model builder/ buyer agreement. Builder should be penalised with interest to buyer in case of delayed possession to allottee of the flat/ house by due date. It is also pertinent to mention that majority of buyers took housing loan and have to pay interest on the loan amount which adds to their mental and financial agony. Therefore, need of the hour is to have model Builder/ Buyers agreement dully endorsed by RERA authorities to save guard the interest of buyers.
Col TBS Bedi (Retd), Mohali
Scams growing at the rate of real estate growth
The real estate sector is growing at a rapid rate and so are the frauds associated with it. Even consumers are well aware of this but still suspectable to scams. It is government’s obligation to protect the citizens who invested their hard earned money into buying property but unfortunately get cheated by builders. To protect the gullible buyer, the government should take over the management of the groups who cheated on the buyers and get the work of pending construction work completed and hand over possession to buyers. Government should step in to rescue the investors by taking the strict action and imposing huge penalty on defaulting builders. Government should do in-depth checks on the builder’s background and his past work experience before giving the legal rights of development to residential as well as commercial buildings. In case something is fishy, the builder must be immediately blacklisted.
Prabhjot Nagpal, Zirakpur
Reader of the week
Need strict monitoring, simplified process
The root cause of problems being faced by investors and buyers of residential and commercial properties is the total lack of monitoring by licensing authorities. As an interim measure, the competent authorities should strictly enforce projects as per the Punjab Apartment and Property Regulation Act, 1995. All financial transactions of builders should also be monitored to protect the interests of the buyers. Since the present situation continues to be alarming, the state government should set up a task force to urgently review and simplify the working of the real estate sector as most of the realty players in Punjab seem to be heavily stressed due to the cumbersome procedures.
Hardaman Singh Bhogal, Mohali
Expert take
Single window for plaints
The state government should appoint one authority so that allottees can go to one place, instead of multiple agencies. At present, the allottee is totally confused, whether to go to RERA, consumer court or police. State government should also give more powers to RERA so that they can execute their orders.
Ravinder Taneja, chairman, TDI, managing director
Give teeth to RERA
RERA should be made powerful enough to deal with such complaints and another agency should be attached to it to execute its orders. Investors should also do their homework and check whether the builder has a valid license, and fulfills norms of the building bylaws.
Vipul Ujjwal, chief administrator, GMADA
Timely plaints
In case of problems, home buyers must immediately lodge a complaint with RERA so that action can be taken in a timely manner.
Sanjiv Gupta, member, RERA, Punjab
Official willingness
Despite challenges in the new law, we have given remarkable relief to thousands of consumers in a short period. If officials are willing, then the authority has enough powers to ensure justice is done.
Dr KK Khandelwal, chairman, Haryana Real Estate Regulatory Authority (Gurugram)
Check builder’s credentials
Before investing money, the investor should look into the history of the builder. They should also check whether the builder has a license or not. Before taking possession, the buyer should check the completion certificate.
Umang Jindal, secretary, CREDAI-Punjab
