Owning a house in Hyderabad is a dream for many people. But prices of lands and flats have skyrocketed in the city, making it near-impossible for the general public to own a residence. However, some fraudsters have turned this desire of common man into their weapon to dupe them under the guise of UDS (undivided share of land) and prelaunch sales. They kept the prices of properties low and lured people to grab their offer with both hands. They used social media to release these misleading advertisements offering flats for nearly half the market price and started deceiving people. Others too followed the suite and started selling properties without obtaining mandatory approvals from GHMC, HMDA, RERA and other government agencies. Many left wondering, who would bring this menace under control.
Almost 20 months ago during the peak time of Covid-19 pandemic, not many people had enough money in their pockets to purchase a property in Hyderabad. At this precise time, a company called Bhuvanateja Infra was started in Hyderabad. In a very short period of time, the company has reached the level of paying a commission of Rs 10 crore per month to its sales agents, as claimed by the company owner himself. In 2020, the company started a gated community on an extent of 3.85 acres promising an apartment complex with Ground + 10 floors in Shamirpet. They promised a club house, a swimming pool and an auditorium would be built. Of a total 1,200 flats, around 300 flats were sold at a price of Rs 1,600 per sq.ft. Plus, there were no charges for amenities or car parking. The company management informed that customers need not pay GST and even registration would be done for no extra cost. People could not believe their luck and there was a mad rush to grab the offer. Within no time, the company collected up to Rs 50 crore through sale of these 300 flats and immediately started the second phase of their project at a price of Rs 2,200 per sq.ft. And a year after that, the project is yet to receive RERA approval.
The same company started duping buyers offering double bedroom flats for Rs 22 lakh at Atvelli in Medchal and for Rs 30 lakh in Velimala. Simultaneously, they launched multiple projects at Dundigal, Mancherial, Khammam, Armoor and Nizamabad across the State and started collecting money from gullible home buyers. All this happened and the authorities are yet to take any action. The RERA would have taken action as well as would have ensured justice to the customers, if the project was registered with them. Under these circumstances, questions are being raised about what the government should have done to protect the middle-class people from getting cheated by organisations like Bhuvanateja Infra.
If you want to build an apartment with G + 10 floors, construction cost would be at least Rs 2,000 per sq.ft. This would be in addition to the land cost, fee for permissions and approvals which would take the total construction cost up to Rs 3,000 per sq.ft. Under these circumstances, if the builder is selling a flat for just Rs 1,600 per sq.ft, would the project ever be realised? Or would the developer just take the money and run away? Someone must clarify these doubts. If someone argues that only 25 per cent flats will be sold for lower price and the remaining 75 per cent will be sold for a higher price, why would anyone purchase the flats with such a price difference in the same project? What if those who have already bought for a lesser price put up their flats for sale for Rs 2,000-2,500 per sq.ft? How many people will buy flats for the hiked price from the builder? Moreover, the developer also will be responsible for the structural strength of these flats for about five years from the day of completing the construction and regulations do not agree, if the apartment is constructed with cheap material. The builder must repair any defects in the structure. If structural defects are found and the builder does not fix them, RERA will take stringent action and could even send the developer to prison, if he/she refuses to take the responsibility of maintaining the quality of the flats.
During the Corona pandemic, a company called Bhuvanateja which started sixteen months ago, announced projects in different parts of the city without RERA’s prior permission. Bhuvanateja, which had not even a rupee in its bank account, handed over a commission of around Rs 10 crore to its sales agents in May 2021 alone. Real estate sources say that by giving lakhs of commissions to such agents, they are cheating innocent people. No one will have any problem, if they start projects with relevant permission from RERA. People can happily and confidently purchase flats from such projects. However, the said company is collecting huge amounts from people for its projects without obtaining permissions from the government agencies and only promising its customers that they would soon get these permissions. But, it is an illegal offense to start a project without RERA permission. In doing so, the RERA can impose a penalty of 10 percent of the project value. The agents too should not sell plots or flats in projects without RERA registration. The Telangana RERA had already cautioned buyers against buying properties in projects which do not have their permission.
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