Well this is what can be said about the country as whole.I just cannot understand why the Government does not make some regulation straight away.My suggestion would be. There should be an interim body between the Buyer and the Builder.There should be no transaction between the builder and buyer. So if the Builder has flats to sell,he has to register with the Interim body.The buyer has to make purchase directly from the Interim body. If there is any foul play let the interim body deal with the Builder.This would be like retail shopping for Homes.The interim body can take some deposit from the builder for Safeguarding the consumer.The Builder should not have any hassles.In this case the Black money transactions could be done away with. If the builder thinks he is a brand name,,then he could fix a premium on his property.This premium could be mentioned by the Interim dept. Let the interim body themselves measure the Carpet area and other evalauation and put it in the offer document.Let this body liase with the Banks. Many of us pay black money or sometimes more then neccessary.This could be avoided. Everyone will be happy,,the buyer,,the builder,,the court etc etc. Buying a house should be as easy and similar to buying a Car or other consumables. Even resale of flats could be done in the same manner. Let the interim body fix a percentage as fees. So that will not burden the Government. We could avoid unneccassary hassles like brokers and court cases.
RE:Incompentent lawmakers and Judicial System
by Shriniwas Deshpande on Oct 22, 2007 09:13 PM Permalink
Your suggestion appears very nice. Is there any place where this is been practiced?
RE:Incompentent lawmakers and Judicial System
by anilkumar on Oct 22, 2007 09:36 PM Permalink
Hi shrinivas, I work with lots of people with different nationality,i am not sure there is any pracise similar to this. But i am quite sure that in thier country they do not have any hassles,,either before buying houses or after buying. This disease is only in India and only India can find some unique solutions. Right now the Politicians,Police,etc are all under the payroll of the builders.God help us!!
I have shelved my plan to buy a proposed / promised flat. After paying all the money, there is no garantee that I will get what is shown on the coloured brochure.
So I will buy what is in my budget and what is ready to see and live in right away.
I prefer to buy at more cost than having mental agony of being cheated.
My brother booked a flat with Sobha developers in their Sobha dreams project in early 2004. After keeping everyone waiting for more than two years, Sobha scrapped the project few months back. Property prices have more than doubled since then. One wouldn't expect big builders like Sobha to cheat there customers. Unfortunately, that is the way it is working with many of the mig builders.
RE:Even Big builders do this dirty trick
by Bob Seth on Oct 22, 2007 09:52 PM Permalink
forget big builders govt agencies are also into cheating its consumers
Agencies like CIDCO, MHADA . Many believe govt agencies do not cheat but in case of Congress Governed Capitalist Maharashtra Govt agencies like CIDCO educate and guide the private builders of innovative method of how to cheat . In case of any problems common man will end up in lengthy court cases. Today Situations is such that there is a total absence of goverment machinery and regulations which takes to task unscrupulous buildera and agencies like CIDCO, Rampant cheating by CIDCO by short changing buyers by giving lower carpet area and charging on super built up areas.
If goverment agencies LIke CIDCO Cheat and defraud the people so what honesty can one expect from the greedy builder community.
example CIDCOs famous Railway Station Complex Scam
The station complexes Built By CIDCO at Nerul , Vashi, CBD. The commercial shops /offices was sold in the open market in 1996-1998 as Saleable Area = Carpet area plus ( 95-150 ) % loading at higher rates. In the year 2004 The unsold shops / offices were sold as Saleable Area = Carpet Area plus ( 30% ) Loading to friends / relatives and front men in the Mktg dept of CIDCO at a discounted price .i e One Bldg , Two Adjacent Shops - Same Carpet Area , But Saleable Area sold differs by 60 % - 120 %. ie carpet area 600 sq ft Sold as 1200 Sq ft in 1998 and in 2004 sold as 780 sq feet.Simple case of Con / Cheating the common man.In case of CIDCO standar
Q1. Why are we hell bent on the builder - house owner system? They waste land, make huge profits and give us third grade construction.. Q2. Why the goverment not doing any thing to pass a strict regulatory bill against these builders in Parliament.
RE:Why do we need to buy a house from a builder
by subhash sirur on Oct 22, 2007 09:21 PM Permalink
Gyanendraji,Where will the politicians go if they bring in the regulatory bill.They are happy with the state of affairs as they are making the big buck through the builders.
This article is not honest. Everybody knows that builders and nowadays even in second sale, people are asking 50 percent cash and 50 percent cheque. I need a house...it is my basic right and I cannot get it legally by all white money (even if I am ready to pay more like 35 lakhs, builders will give agreement value of 18 lakhs only).
RE:Cash and cheque ratio
by subhash sirur on Oct 22, 2007 09:33 PM Permalink
Dear ABS,You have not got the basics right(s).You and I ,"common man",shouting at the top of our voices,will not be heard by the powers be,as they do not get anything by listening to us.Make hay while the sun shines is their motto.The politicians have given the builders a free hand to do what they wish.A 1000 sq ft built up flat is actially 550 sq ft carpet area.The commercial establishments are even worse.The"loading" as they call it is even heavier.The Mumbai's real estate scene has been taken over by scoundrels,scum,goons and politicians of all colours from all parties.God save the common man.
I applied for a house in 16.02.2004 with Alliance Builders at Bareilly with a promise to get the house in 18 months from the date of booking. I was asked for 10% of the total cost and the land was registered in my name by the the authorities. The builders then signed an agreement for contract of construction as per specification & type purchased. They handed over the completed house in 26.11.2006 . Now, the Registration authorities have sent us NOTICE for cheating on STAMP DUTY paid by us during the time of registration, stating that we have purchased house and not land. The Stamp Duty paid is for land only. Now they want the difference. The fact remains that at the time of registration no construction was there.
The builder says they have nothing to do with whatsoever. To attract customers, they put the price low, register the land, keep taking money from the customer in instalments and make the house without investing much from their pocket. Now we are left to fight the legal battle with authorities for which we are not responsible at all.
