Track2Realty Exclusive: In Noida Extension buyers took to streets against the developers for allegedly using all available options to ensure that the original set of buyers were divested of their flats, which could then be resold at a higher rate. In a majority of the cases, the consumers were faced with a Hobson’s choice.
With a number of these developers having defaulted on the payment to be made to the Greater Noida Authority, banks were not disbursing loans to buyers of these projects. This resulted in buyers falling back on payments, a pretext used by builders to threaten cancellation of allotments.
As a matter of fact, in Noida Extension information sought under RTI showed a number of developers had defaulted on payments to the authority. “Every bank comes to the authority for no-objection certificate before disbursing loans. Now, if the builder has defaulted on payments to the authority, the banks will not disburse loans,” says a senior official of the Greater Noida Authority.
Three years after the Haryana Government launched a scheme to build affordable houses in the city spread across 200 acres of land, the Gurgaon Citizen Council (GCC) threatened to move court over non-implementation of the policy. The GCC has given the government an ultimatum to reveal the names of the developers who were awarded licences along with the project locations.
In 2009, the government had earmarked land in various sectors of the city to construct nearly 40,000 houses, priced between Rs. 4 lakh and Rs.16 lakh. Several builders had also applied for licences to develop the units with an area of 270 square feet and 520 square feet.
“The policy was notified on May 5, 2009, but no houses have been built to date. We have asked the government to show us how many builders had been granted licences and where they are developing these projects in Gurgaon. We suspect the builders have misused the policy by using the land for other purposes,” says TN Kaul, General Secretary, GCC.
However, while in most of these cases the grudge of the buyers has been genuine; it seems the overdoing proved to be the nemesis of the consumer activism during the year. For instance, backed by the Competition Commission of India (CCI) penalty of Rs 630 crore on DLF, for “unfair trade practices” and “abuse of market dominance”, the Belaire Owners’ Association suddenly became self-styled crusaders against developers.
They started openly advising several residents’ welfare associations (RWAs) from Gurgaon to Greater Noida how to resolve their flat-related problems. The moot point, however, is whether a judgement passed by a quasi-judicial body empowers a group of victims to suddenly emerge as de facto consumer courts overnight?
Qubrex, the real estate brokerage firm that presented an expert report to the CCI on the market share of DLF to establish its dominance in Gurgaon, also got its hands full, with various buyers seeking its help against developers. It seems the overt media trial and taking to streets has not gone down well with the judiciary and the administration, leave aside the developers, and hence in 2012 the residents were snubbed by the courts and the administration even when the grievance looked legitimate.
…..to be continued
