The Gurgaon Real Estate sector, which was expected to turn around after the formation of the new government at the Centre, continues to remain in the doldrums. While many residential projects remain delayed, some commercial projects – sold on the promise of assured returns - are coming apart. The failure of the regulatory authorities to ensure that delivery schedules are adhered to, and promises delivered, has led to apartment buyers and commercial investors being forced to come out on the streets to protest, as well as approaching the courts, and in some cases even the police. The builders are meanwhile manipulating the void in any sort of regulatory check to the hilt. It is hard to imagine that the govt. is not complicit. The owners of 'The Residences' project in Sector 33, which is a part of a township being built by Unitech, held a unique protest on Saturday, when almost 150 home buyers descended on the project site and volunteered to work as labour – ‘responding’ to the builder’s excuse that shortage of labour has delayed the project! Each of the buyers has paid about Rs 50 lakhs for an apartment. Vikram Bishnoi, President of Terraces Apartment Buyers Association, says that this project was launched in 2009 as part of Uniworld City, with the promise that the apartments would be delivered in December 2011 (or March 2012, for those that were launched later). This complex comprises 22 towers, each14 storeyed (total 1320 apartments). “By March 2011 the structures of the towers were almost complete. Most of the buyers had made close to 90 per cent of the payment,” says Bishnoi. However, all their hopes were dashed when the builder, instead of completing this residential complex, launched a commercial project in the same 150 acres ‘township’. The owners allege that more than Rs 500 crores collected from them was diverted to the commercial complex, where construction began in 2012. One part of the 3-part commercial complex was soon completed in 2013 and leased out to tenants. The rest of the commercial complex was also completed by 2014. “We were repeatedly told that labour was not available to work on the project site. However, when we asked how the commercial complex had been built and delivered so quickly, there were no answer”, he adds. The apartment owners were further shocked when the builder next decided to build villas in the same ‘township’, and the entire labour was moved from the commercial property to that new project – again leaving the residential property buyers in the lurch. Bishnoi says that the homebuyers have decided to come to the site every Saturday and Sunday and will work with the labour. Those who are frail and old can hire labour and get their work completed, so that they can at least think of getting their dream homes at some point of time. Most of the buyers are professionals, with more than 15 years of work experience, with many working in leading companies. A majority has taken loans and is paying EMIs as well as rents. For most of the people this is their first home. Bishnoi say that the builder now claims that he is ready to pay penalty for the delay, but none of the residents has received anything – and they do not believe that they will. It also would be a pittance compared to the ‘losses’ that they are already dealing with. Unitech has lost all credibility in their eyes.
While the buyers of ‘The Terraces' hope they will be able to somehow manage to get their apartments ready, a large number of investors from all parts of country, and particularly the NCR, gathered in Manesar to protest against AN Buildwell, the company that has built the Spire Edge commercial complex there. Investors allege that the Company had promised assured 12 per cent returns. Anuj Arora, Secretary of the Spire Edge Allottees Association, says that buyers have not received any payment from November 2013 onwards; instead, the builder has made a hefty demand in the name of ‘power connection’ for the building, and now branded the complex as World Trade Centre (WTC). Arti Singh, a widow of an army officer, says that her husband had invested more than Rs 50 lakhs in this project. “The returns from this investment are a very important source of income,” she says. She adds that this investment was made from the sale proceeds of their ancestral house. She is particularly perturbed that, instead of giving her the returns on her investment, the builder is now also talking of ‘maintenance’ – which could be Rs 15,000 to 20,000 per month. Anuj Arora says that they have repeatedly approached the Company Directors, but they have not offered any way forward. Rather, on the day of the protest, the builder had called in a number of policemen, who tried to prevent the protest. Finally, on meeting, the representatives of the builder claimed that they did not have the authority to make any commitment. Most of the investors in this project are retired government and army officials, who invested their life’s savings in this project in order to get an assured monthly income. They feel cheated. Shashi Singh, an educationist from Ghaziabad, has invested almost her entire savings as well as her husband's retirement income. She alleges that some people who were allotted space on the second floor have now been ‘shifted’ to the fourth and fifth floors arbitrarily – it seems that just some ‘virtual space’ has been sold to the investors. The investors say that they are fed up with the repeated ‘assurances’ of the builder and now want the government to intervene in the matter. They also want action against the brokers and dealers who motivated them with false information. The Association is also planning to move the Economic Offences Wing and have issued notices to the builder in this regard, says Anuj Arora.
While the apartment owners and buyers of the above two projects are turning the heat on the builders, there are RWAs in the City who have been forced to approach the government as well as the judiciary to seek an end to the incessant problems being faced by them. Recently the Fresco Apartment Owners Association approached a Gurgaon Court against the failure of their builder to provide them civic services and facilities. Similarly, the residents of JMD Gardens on Sohna Road have approached the National Consumer Court to get their grievances addressed. Likewise, the RWA of Ambience Lagoon, a premier residential complex, recently approached DTCP (Dept. of Town & Country Planning) for help in resolving the large number of problems being faced by its residents. Everyone is now anxiously awaiting the setting up of an independent Real Estate Regulatory Body - which can ensure that builders deliver their projects on time, do not misuse the funds of buyers/investors, and provide the facilities and services as promised.
Will the govt., and therefore builders, finally act?
At the fag end of it's tenure, has the Haryana government ërealisedí the problems being faced by apartment owners and plot buyers ñ or is realpolitik the reason for some ëmovementí? Perhaps the court cases filed by several RWAs has also influenced the government to finally take action against builders, many of who are a law unto themselves in the City. In a late but positive development, the Deputy Commissioner Shekhar Vidyarthi pulled up various builders in Gurgaon for not adhering to their Licence terms & conditions and failing to provide the required facilities and services. He directed them to bridge the ëgapí in maintenance and upkeep of internal services in another seven days or face action. Vidyarthi was presiding over the meeting of a Committee that has been constituted for the redressal of the grievances of people residing in various ëcoloniesí. He minced no words in saying that as per the Haryana Registration of Societies Act 2012, till the developer gets the Occupation Certificate issued - after completing all terms and conditions of the Licence - and an elected RWA is formed, it is the sole responsibility of the developer to maintain and upkeep the internal services like roads, drinking water, sewage, drainage, parks, community centers etc. Vidyarthi also warned the builders that the furnishing of wrong information by a representative of a builder to a public servant could lead to a punishment of upto 6 months imprisonment - under Section 177 IPC (which he read out in detail). He asked the developers to take serious note of their lapses and ensure immediate action is taking to rectify them ñ otherwise the Committee can even recommend the cancellation of their Licences and the seizure of their Bank Guarantees.
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