With the states set to finalize the RERA rules and chalk out their respective frameworks for formulating such state agency as mandated by the Parliamentary law enacted last year, there is a definite hope in the corridors of buyer market to make defaulting developers to fall in line after nearly half a decade of fiasco of loot and breach of trust by such transgressors therein. Salience that has been mostly discussed regarding RERA is to bring transparency and accountability in the real estate market, absence of which has been the real culprit in this commerce of real estate.
Such concealing veil has been adversarial to the very idea of free market transactions and fair trade and thus, ended up defaming and shaming of the once booming market duality of Noida-Greater Noida. But we definitely need to ask the question whether blame is on the real estate transactions per se, or opaqueness of the sector carries the baton for its ebbing?
In the beginning of the financial year of 2016-17, when RERA was announced, alarming news broke out in the circles of NCR. It blamed Amrapali builders in Noida for non-delivery of around 50,000 to 70,000 flats to their respective buyers, because the developer had failed to pay its dues to the NOIDA authority for the land that it allotted to the developers between the years 2006-2009. This news got more famous because at that particular time, former captain M S Dhoni was its brand ambassador, which he later on relieved off succumbing to public pressure and public agony against the builders. A similar fraud was reported in 2015, when it was alleged that the all-famed Supertech developers in its projects at Omicron overdid construction of nearly 1904 flats instead of approved 844 flats by Greater Noida Authority.
As early in November 2013, Shiv Kala Charms allegedly carried a fraud on its buyers by facilitating loans to multiple buyers on a single flat, in which officials of Axis, Oriental, Syndicate and LICHFL are also in the line of fire from the vigilance authorities. Another prospective fraud was realised when several complaints were filed against Noida based Earth infrastructures projects named Earth Titanium in which they advertently denied paying 12% assured return to the buyers even after an MOU was signed between them. Such open flouting shows their courage going in contravention with the law between the contracting parties. Similar complaints against Gulshan Homz project was filed for misappropriation of funds, planned forgery, and cheating.
A recent brochure fraud was also revealed viz-a-viz Cosmic group in greater Noida. Off-lately, in May 2016. Jay Pee constructions were reprimanded by NCDRC and a writ was realised forcing them to pay 12% per annum interest for delay in providing possession in Kalypso court project on Noida-Greater Noida expressway. Such lists of defaulter in Noida and Greater Noida is flooded with both well known developers like Unitech Ltd., Omaxe constructions, ATS infrastructures and also lesser known new faces such as Panchsheel buildtech., Rudra Buildwell, Sam India housing, Asteroids Shelter Ltd. Etc.
Aforementioned frauds calls for necessary caution for consumers and such prospective buyers to perform before buying a property in Noida region before a proper functioning mechanism is in place accruing as mandated by RERA act. Such caution includes checking the history of builders and developers thus figuring out the credibility of such real estate developers. In addition to that, such prospective buyers need to essentially know of their respective rights under the new Real Estate (regulation and development) Act, 2016, which essentially makes case for minimum deceit by such developers. Such prospective buyers also need to know their respective grievance redressal units and forums, wherein necessary stay order and requisite judicial injunction can be realised if needed. Moreover knowing the market well by essentially scrutinizing the history of the place, a rigorous appraisal of both the developer and the market must be realised in order to minimise the conflict in picture between the buyer and the developer. Such caution can essentially make the market more transparent, accountable, promising and gives minimum chance of deceit and concealment that necessarily works in the interest of buyers, sellers, Govt. and the housing sector as a whole thus making a fruitful case for constructive market activity benefitting all the stakeholders in a more just manner.