Greater Noida home buyers cry foul against builders, refund rates
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Noida buyers cry foul on refund rates

People who bought property in the area are complaining that the promises made by real estate developers were misleading as they are offering very low rate of interest.

  • New Delhi,  July 19, 2011  
  • |  
  • UPDATED   10:14 IST

Home buyers in Noida Extension may have discovered the meaning behind the saying 'some promises are meant to be broken' as developers appear to be going back on their promise to return buyers' money invested in residential projects in Sahberi village with interest.

People who bought property in the area are complaining that the promises made by real estate developers were misleading as they are offering very low rate of interest.

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"Even as developers have promised to return the money, it is misleading as they are putting many clauses when buyers are approaching them," said a buyer who has booked a two-bedroom flat in Supertech Developers' Eco Village-II, which was affected by the Supreme Court's order to quash land acquisition in Sahberi.

"My developer is saying there is no deadline on returning the money and they will initiate the process only after reviewing flat availability in other projects. Also, they are giving a long note of deductions," the buyer said.

Projects of six developers - Supertech, Amrapali, Mahagun, Panchsheel, Gulshan Homes and SPJ (Shree) - were affected by the Supreme Court's order. Last week, these realtors had assured investors that they would return the money of the affected buyers with interest. However, buyers say they are being offered an interest rate of only four per cent.

"Initially, they said they will offer interest rate equivalent to the rate of home loan, which is eight to 11 per cent at present. But now they are saying that the interest rate will be only four per cent, as the court has not set the rate of interest to be paid," Ravi Garg, who booked a two-bedroom flat in Panchsheel Greens-I, said.

REAL(I)TY CONCERNS

BROKEN PROMISES
Projects of 6 developers - Supertech, Amrapali, Mahagun, Panchsheel, Gulshan Homes and SPJ (Shree) - are affected by the SC's order to quash land acquisition in Sahberi. Realtors had promised to return investments with interest rate equal to the rate of home loan, which is 8-11% now.

DEVELOPERS' DEFENCE
Developers say it is not feasible for them to return the money overnight. They say that they will refund the money only in projects that are affected and if buyers pull out of other projects then the deductions will be done as per agreement.
However, developers have their own justification for this. "It is not feasible for us to return the money overnight. The process will take some time and buyers have to cooperate," Anil Kumar Sharma, chairman and managing director (CMD), Amrapali Developers, told M AIL T ODAY . "Our company had already made arrangements for refunds and alternative arrangement for 3,500 flat buyers. We are already trying to reach the rest of the 500 buyers," Sharma said.

"We are going to refund the money only in projects that are affected. If buyers are pulling out from other projects then the deductions will be done as per agreement," R. K. Arora, managing director (MD), Supertech, said, without mentioning the rate of interest.

According to Ravi Kant Pandey, a buyer in the Mahgun Mywoods Village, there is fear regarding disputes over other projects as many farmers are believed to be moving the high court after the Sahberi decision.

"Our developer has given us in writing that there is no dispute on Mahagun Mywoods and in case of any dispute they will return the money with eight per cent interest," Pandey said.

However, most buyers feel that panic is being created because there is no clarity on whether or not their projects fall under any disputed land.

"Neither developers nor Noida Authorities are giving the exact picture about which projects are on disputed land. That has created confusion as well as uncertainty among the buyers," Pandey added.

"As the land in other parts of Noida Extension was also acquired with the same procedures, it is feared that the Allahabad High Court may take the same decisions and quash the land acquisition in other parts of Noida Extension as well," said the Noida Extension Flat-Buyers Welfare Association in a statement.

"The flat-buyers must be made a party to the case and they must be given an opportunity to be heard before a decision is taken," they added.

Courtesy: Mail Today