If Insiders in the real estate business are to be believed, almost every housing project is being put forward for prelaunch in satellite towns.
The upcoming hi-tech cities and townships on NH-24 and NH-58 in Ghaziabad, the housing projects along the Greater Noida Expressway and in Greater Noida and various projects coming up across the canal in Faridabad offer only some examples of `pre-launch'.
"Since `pre-launch' is illegal, such deals are given a different name like advance registration. The builder promises a housing project on a particular piece of land and invites buyers for advance booking of plots and flats at a discounted price. The money funds the construction of the projects," said a senior official of a real estate company on con , dition of anonymity .
RISKY AFFAIR
- Till the time the projects get requisite approvals and construction begins, the investors' money is at stake. Sometimes, the approvals take a long time to come and the projects get delayed.
- Experts say that most of the bigger developers do keep their promises because their credibility is at stake.
It is only after the developers complete the acquisition process and submit a detailed project report along with the necessary site plans to the development authority that such , `pre-launch' offers are possible.
Often, these projects are announced way before they get the requisite approvals from the agencies concerned. Developers of the two up-coming hi-tech cities along NH 24 are yet to complete the acquisition process.
They however, have made ad , vance registrations at the rate of Rs 7,500-8,500 per square metre and are already raking in crores of rupees.
Till the projects get requisite approvals and construction begins, the investors' money is at stake. Many a times, the approvals take a long time to come and the projects get delayed. "We invested Rs 3 lakh in a hitech city project when they were first announced more than two years ago. We have no idea what is going on there," said Satish Kumar Verma, working with a public sector firm. Experts say that most of the bigger developers do keep their promises because their credibility is at stake. If they get the land and the necessary approvals, they do make allotments to the registered people or return their money with interest.
"We do try to keep an eye on such clandestine offers. A foolproof mechanism needs to be developed and concerted effort has to be made to keep a check. Apart from that, public awareness also needs to be created to ensure that companies do not cheat gullible investors," said Ghaziabad Development Authority's chief architect and town planner S.K. Zaman.
In Ghaziabad, cheating cases have been registered against two companies - Seven heavens and N.R.Buildcon - for offering land through pre-launch, collecting money and then vanishing. Many more developers have been put under the scanner but nothing concrete has come out against them, a senior police officer said.
"There are orders from the state government to register cheating cases in pre-launch offers. The complaint can either come directly from the individuals or through the development authority said Ghazi ," abad district's senior superintendent of police Deepak Ratan.
Source: Hindustan Times, 08/04/08
