BIG BLOW TO BRAND HYDERABAD

King Johnson Koyyada: UDS sales, pre launch offers, buyback offers, and cent per cent payments – These are the new schemes reflecting the growing irregularities and illegal ventures in Telangana’s real estate sector. Small-time real estate agents to contractors and even inexperienced people from other cities, are coming to Hyderabad and making the city the base of their illegal activities. Buyers and investors are being lured and looted in the name of lower prices. Hyderabad, which is well-known not only in the country but all over the world, is in danger of losing its reputation due to such illegal activities. But surprisingly, none of the real estate developers associations are not reacting even though the Bhagyanagar (popular as Hyderabad) is on the verge of losing its sheen? It is even more shocking that none of these organisations are even making any attempts to curb these illegal transactions by at least initiating action against their members who are resorting to such activities and are happy to blame the authorities instead, ignoring their responsibilities.

Construction associations have definitely made a significant contribution to the systematic development of the real estate sector in Telangana. All these associations have been encouraging their member companies to undertake projects in accordance with RERA regulations. A couple of associations played a key role in effective implementation of RERA norms. But why do these associations not currently control builders indulging in UDS and pre launch sales? Rather than acting tough, the respective associations appear to have chosen to remain silent spectators despite knowing the fact that buyers are being fleeced illegally. As a result, those taking up UDS and pre launch sales, are acting as per their whims and wishes. The builders associations are putting little efforts to curb these illegal activities despite knowing that it was a dangerous trend that could destroy the entire sector. And the non-responsiveness of realty associations continues to be a million dollar question for the buyers.

Minding their own business

Although some members of the construction community appear to work together in dealing with the realty sector issues, a large percentage of these builders prefer to mind their own business. Every developer who undertakes constructions is always faced with some difficulty or the other in their daily work. Hence, most of the developers who have a busy schedule, do not pay much attention to the association affairs. Most developers take membership in one association or the other only for the sake of it, with a few others obtaining memberships in more than one association. Thus, each builders association has control over a limited number of members. They come together only when they take up industry related issues with the government and submit their representations in order to find a solution to their common problems. When it comes to the existing chaos caused due to UDS and prelaunch sales, these associations chose to blame the RERA Authority and dust off their hands.

Has full support of the government and yet!

Since the formation of Telangana, the State government has been providing complete support to the construction sector. Whenever the builders reach out to the government with any issues, they are being promptly addressed. Despite such a friendly climate for almost seven years, the realty developers associations are failing to reciprocate the same towards the government. They are repeatedly failing to keep tabs on certain member companies who are indulging in illegal sales of UDS and pre launch projects, which are bringing disrepute to the government. Although one or two associations seem to be working on resolving the issue, they do not seem to have made much progress. The construction associations are yet to discipline their member companies to make them refrain from UDS and pre launch sale of flats and plots. Each builders association should release a list of perpetrators of such offenses. If the members are not heeding to their warnings, they should be removed from the association immediately and steps should be taken to blacklist such companies immediately. They should not be allowed to join any other builders association in Telangana. The government should also revoke the respective builder’s license. The RERA authorities should impose hefty fines on such builders. Only through stringent measures, the problem of builders resorting to UDS and prelaunch sales can be addressed.

All is well

After the formation of the Telangana RERA Authority, all the construction associations in Hyderabad breathed a sigh of relief. Initially, construction companies competed with each other for RERA approval. If the green signal does not come from the RERA, they hesitate to even announce new projects. Many companies are openly stating that they will announce a new project only after getting RERA approval. But, the change in this situation has been evident for some time now. Several companies are mushrooming in Hyderabad promising housing at a cheaper rate under UDS and pre launch offers, ignoring the RERA. Innocent middle-class people are being put to trauma and investors are being fleeced. Surprisingly, the RERA too has remained silent even though these companies are posing a challenge to its authority.