CREDAI Brand Image in danger?

(King Johnson Koyyada)

The acronym CREDAI is brand that has an image at home and abroad. It would mean special recognition to realty projects. In fact, NRIs prefer to buy properties from builders registered with Credai. To achieve this kind of recognition, Credai did put in lot of efforts over a period of time. That’s why, wherever it goes, Credai is extended red-carpet welcome. In fact, Credai has 217 chapters in 21 states. It has a total of over 13,000 members.

Is it true that the image of Credai, which is glowing brightly in domestic construction sector, is about to take a beating? Why Credai has remained a mute spectator when omissions and commissions of some builders are tarnishing its image? Is it okay on the part of Credai to hurriedly convene a press conference to issue a condemnation? Who are responsible for tarnishing the image of Credai in Hyderabad?

To become a member of the Credai, any builder would have to sign a document owing allegiance to its code of conduct. Unless the builder signs it, membership of the Credai is ruled out. It would mean, builders should develop their projects as per the Credai rules. At the time of the issue of membership, the builders would have to sign an agreement to the effect that they would commence flat sales only on receipt of approvals from local bodies. At the time of signing the code of the conduct, the builder would affirm under his signature that he would show all related documents to prospective buyers and would issue photocopy of any document sought by the customers. If any builder wants to sell flats prior to approval of the building plan, the fact should be communicated to the prospective buyers. Moreover, it should be incorporated in the agreement.

Who should resolve if a dispute arises?

In case of dispute between buyers and developers, the Credai should resolve the problem, constituting a special consumer redressal forum. If the problem is not resolved here, victims can approach either consumer forum or court. But, God alone knows how many consumer redressal forum are there in Credai’s Telangana chapters and who constituted the members of these forums. Some builders who are members of the Credai have been selling plots and flats in pre-launch offers and through the UDS offers. Because of the omissions and commissions of these builders, 90 per cent of the other builders have been facing problems.

In fact, in Kondapur area a Credai-registered member sells a square feet of a flat in his high-rise structure at Rs 8000, while some CREDAI builders in the name of the pre-launch and UDS offers sell a square feet at half the price i.e., Rs 4000 or Rs 5000. Because of the unauthorised sale genuine builders are being affected.

In spite of the problem persisting for a long time, the Credai leadership apparently paid no attention to resolve it. However, it took some action against UDS sale of the projects initially, later it seems to have taken no substantial action. At the same time, the number of builders resorting to unauthorised sale of flats through pre-launch offers of the projects and the UDS has increased. The irregularity has spread to all over the state. To restore normalcy, the Credai has to take lot of pains.

The UDS sale and pre-launch sales of the projects has worsened the situation so much so that it has affected the sale of the flats or plots in the RERA permitted projects. If the irregularities were to continue further, the construction sector in Hyderabad would have to pay heavy price. Will the Credai remain inactive when the danger of realty sector collapsing in Hyderabad surfaces?

Who stopped CREDAI to regulate controversial builders?

As per the Credai rules, any member should begin sales of the projects only on the receipt of the permission from local bodies and reach an agreement in this regard with the purchasers. However, some builders have been giving the rules a go-by for over a period of time and taking the flat cost 100 per cent upfront prior to getting the approval. Why the Credai is not able to rein in such builders? Why it failed to inject some sense to such unruly builders? Why the Credai is not holding a meeting with perpetrators of such UDS sales of properties?

Why Credai failed to tell that they were wrong and their conduct is violates its rules? Why it is not able to raise its voice against such builders? Exactly where lays the problem? It was high-time the Credai regulated the developers engaged in sale of flats in pre-launch and UDS offers on projects, otherwise its image is sure to take a beating.