- Builders of pre-launch projects cannot complete structures
- How would an inexperienced developer construct skyscrapers?
- People who purchase properties under UDS,would get jailed along with builders!
- UDS registrations must be stopped
- Builders must be informed about
- RERA guidelines while granting permissions
(King Johnson Koyyada)
More than 100 multi-storey buildings are being constructed every year under GHMC and HMDA limits in Hyderabad. Most of the builders start construction only after deciding the price to be fixed as per the demand in the locality and number of floors to be constructed. Necessary permissions are sought from GHMC, HMDA and other relevant authorities for the same. The sale will take place as soon as it is registered with the RERA. This is the most common process that has been followed by builders in Hyderabad for the last a few years. But in recent times, some builders have been taking up sale of UDS (Undivided Share of Land), prelaunch and pre-sale offers without obtaining permission from local bodies. This is creating confusion among buyers as well. They are confused whether to purchase flats in an apartment with all permissions at a higher rate or buy in a pre launch project at less than half the price. While some are inclined pre pre-launch, others opted for a wait-and-watch approach.
Promoters are increasingly spending money to buy more land with the funds raised from UDS and pre launch sales. They are selling flats for half of the market price in the locality, to pool money for their project. Apart from advertising or promoting on social media, these developers are completing their sales by offering premium commissions to the real estate agents. Considering short-term gains, some greedy agents are not hesitating to sell properties under UDS and pre launches. As per the RERA regulations, these agents – both independent and employed – should get themselves registered with the authorities by paying a fee of Rs 10,000. However, a large percentage of real estate companies are not complying with this rule. Those who presume that the authorities may not act against agents, should understand that the agent too could land himself in jail along with the builder in case of any irregularities under the new RERA norms.
With funds raised from the sales through UDS and pre launch schemes will be used to buy land, it will be difficult to undertake construction with the remaining amount. As a result, construction is unlikely to be completed as per schedule. Further, a large percentage of realtors and builders divert such money to other needs rather than spending it on the project. Similar cases have been on the rise in Hyderabad in recent times which is causing a lot of loss and trauma to the home buyers.
People without much experience in the construction industry too are selling flats in UDS schemes and promising to construct apartments of 25-40 floors. Building multi-storey apartments on such a large scale, is beyond the capabilities of such inexperienced persons as they do not have the technical knowledge or capacity to execute the project. Their unethical and illegal business is causing more damage to those who build apartments legally. The government too is losing its precious revenue as the realtors are registering UDS land instead of flats.
Here are some suggestions to restrict UDS or prelaunch sales:
Builders apply for prior approvals for the development of new plots, flats, villas and private houses in the jurisdiction of GHMC and other municipal corporations, urban development authorities like HMDA, municipalities and DTCP. At the time of granting the permit, a provision should be made that they can advertise about the project only after it is registered with RERA. Thus, everyone dutifully registers their project in RERA.
The authorities must issue the Occupancy Certificate, only after checking whether the project has RERA approval or not. The builders will understand the importance of RERA permission only when the OC is issued upon checking the RERA certificate.
A penalty of 10 percent of the project value must be imposed strictly for the projects which were developed without seeking RERA registration or imprisonment for up to three years. In some cases, they have to impose both. Criticisms were heard that the RERA Authority is maintaining silence, despite knowing the fact that the illegal constructions are going on for the past two years.
Buyers of flats in UDS will not be considered as flat owners, but would only become co-owners of the project. Therefore, if the developer does not complete the project as per schedule, they will be equally responsible. They might end up paying fines and also go to jail.
UDS and pre launch projects are on the rise in and around Hyderabad as well as other cities and towns. People who are purchasing properties in such projects are getting cheated. Therefore, the RERA Authority should set up a special call center to receive complaints from innocent home buyers who got cheated. Only then the government can identify the areas where these irregularities are most prevalent. These scams can be thwarted in a timely manner.
The Registrations and Stamps department has issued a circular on March 31, 2021 stating that land should not be registered under UDS any further. Similar orders have been in force for the last several years. But some sub-registrars are flouting these norms and colluding with UDS promoters, going to their offices and carrying out registrations from their comforts of the company offices. For example, lands in Sangareddy, Sadashivpet, Jangaon, Bachchannapet, Aleru, Mahabubnagar, Jadcherla, Vikarabad, Ibrahimpatnam, etc., are still being registered under the UDS at the Sub-Registrar office. Therefore, there is a need for the Registration department to respond and alert their staff once again.
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