King Johnson Koyyada
All the real estate developers associations in Telangana have declared war on UDS (undivided share of land) and pre launch sales. At a meeting which was held at CREDAI-Hyderabad headquarters in Banjara Hills, they unanimously urged home buyers to purchase only properties with RERA approval. They said UDS said pre launch sales were a threat to the construction industry and urged buyers to be vigilant to be cautious about them to avoid any unnecessary troubles in future. They also wanted the State government to crush the construction companies offering UDS/pre launch properties, with an iron hand.
Though the construction associations made suggestions to the government as well as home buyers on fight against UDS and pre launch projects, they failed to come up with a concrete plan against this fast spreading disease which has been plaguing the construction sector. Let us all hope that they will come up with a definitive action soon. Holding a joint press conference was a major step by the builders associations without any doubt, in their war against UDS and pre launch sales. Unlike anywhere else in the country, all the builders associations came together on one platform to spread awareness against UDS and pre launch sales in Hyderabad. CREDAI-Hyderabad, CREDAI-Telangana, TREDA, TBF, and TDA have all joined forces to declare war in this regard.
Speaking on the occasion, CREDAI-Hyderabad President P Ramakrishna Rao blamed the Telangana RERA for its callousness in curbing the illegal sale of properties through UDS and pre launch schemes. He demanded that the building permits for UDS projects should not be issued and strict action should be taken against the developers. He said if action was taken against at least ten such companies, the rest would be forced to avoid taking up such projects. He urged the government to wake up from deep slumber and take steps to save the construction sector from this new disease that was spreading fast.
CREDAI-Telangana Chairman Ch Ramachandra Reddy said that buyers should understand that some developers were evading RERA approvals and resorting to illegal sales in the name of UDS/pre launch offers. If the project does not take off, he cautioned that people will be forced to run around the courts. He demanded for the arrest of such fraudulent developers. President Murali Krishna Reddy said that UDS developers were playing with lives of the innocent people and asked the government to come up with stringent rules to curb them. He wanted the Telangana RERA to be strengthened and cancel all the permissions given to the companies which were indulging in UDS and pre launch sales.
Let’s build legitimately
TREDA President Chalapathi Rao said it was important to note that the word “pre” meant a variety of things, but not an approved project and always has a threat of loss. He suggested that all such projects should be declared illegal. He recalled it took decades in the country to bring laws for protection of home buyers. Many builders, who sold their flats in Noida and Delhi region on payment of cent per cent amount, had failed to deliver the projects to buyers. Even after the Centre arranged for around Rs 25,000 crore, the issue could not be fully resolved. “We look for an ISI mark before purchasing anything and insure our vehicles to prevent any losses due to accidents in future. Then should not people take all precautions to avoid any losses while purchasing their dream home?” he questioned, and called on all the builders to take up the projects without violating the law.
Banks should stop lending
Telangana Builders Federation President Ch Prabhakar Rao said people must learn lessons from experiences such as chit fund companies which offered high interest rates, have shut down their shops abruptly, leaving the investors in a lurch. He said the UDS/prelaunch sales were no different as some builders were misusing the loopholes in the law and carrying out such illegal activities which does not guarantee anything to the customers. He expressed his agony that some fraudsters were cheating innocent people and sought the authorities to stop sales of such properties. He wanted the banks and other financial institutions to stop sanctioning loans to such fraudulent developers. “People must not trust the developers who purchase the land and construct the apartments with your money. Like Corona, the UDS and prelaunch sales are plaguing people without being visible. They should be vigilant about such companies,” he said.
Hyderabad should not suffer like Delhi and Bengaluru
GV Rao, president of the Telangana Developers’ Association, said that an information and guidance cell should be set up at GHMC, HMDA and RERA offices. For some time now, it has been reported that builders in Hyderabad are undertaking constructions systematically. He said that only two builders have caused trouble to their customers in the last four years, but feared that the number is likely to increase in the coming days. He said some developers were constructing apartments, without taking into account the actual conditions. He said that layouts were being developed against the rules in the GO 111 area, which could hamper decentralized development. As a result, Hyderabad was in danger of becoming an undesirable city to live in. He said Delhi and Bengaluru were currently facing a lot of problems due to lack of proper planning, adding that Hyderabad should follow the suite and instead, should be developed in a planned manner. The event was attended by CREDAI-Hyderabad general secretary Rajasekhar Reddy, TREDA general secretary Bejawada Sunil Chandrareddy, Vidyasagar from TBF and others.
No definitive plan!
It is welcoming to see all the construction associations of Telangana organising a joint press conference where they openly declared a war against UDS and prelaunch sales as well as sought stringent action from the government to curb illegal practices in the construction sector. However, there was no concrete plan on their behalf to curb irregularities in the construction sector. Not so surprisingly, these associations have refused to disclose the names of the companies indulging in UDS and pre launch sales, leaving everyone wondering if they would come out in the open and support the buyers in case of any such scams in future. To instill confidence among buyers, these builders associations should jointly release a list of construction companies carrying out UDS/pre launch sales. Only then, their fight could bear fruits. Otherwise, these threats are no less than empty shots fired in the air and would serve no purpose to anyone.
