From ET Realty
New Delhi: The Unitech case has jolted real estate developers on the need to speed up deliveries of office and residential property after the company’s directors spent a night in jail on the orders of a local court before they obtained bail.
The sharp slowdown in the real estate sector has piled misery on home buyers across the country and within the national Capital territory with apartments being delayed by nearly seven-eight years in some cases. According to some estimates, hand over of nearly 3,00,000 houses are delayed by up to eight years.
Lack of clear guidelines has left home buyers at the mercy of the fine print of the buyer-seller agreement. A pro-consumer real estate bill which seeks to set up a regulator and bring transparency in the unregulated segment is pending in Rajya Sabha.
Meanwhile, the list of consumer woes has grown. “We booked the apartment in 2009 and were supposed to get it by 2011. It has been a long struggle. We are fighting a legal battle at the National Consumer Redressal Court, but it is just moving from date to date,” said Sharmishta Mallick, who booked an apartment in Gurgaon.
President of Confederation of Real Estate Developers’ Association of India (CREDAI) Getamber Anand, who is also CMD of ATS, said the episode is a clear message that the law will catch up and urged developers to focus on execution, delivery and keep their promise made to the buyers. A senior developer from Mumbai said gone are the days when developers used to promise something at the time of selling and deliver something else. “Now, the buyers are discerning and the courts are active. This episode will make one think twice before messing around with a customer,” said the developer, who did not wish to be quoted.