- RERA’s callousness causing catastrophe in realty sector
- Completely failed to prevent pre-launches
- Database of pre-launch projects should be created
- Current status of these projects should be assessed
- Failure to act upon them, could pose more challenges!
King Johnson Koyyada : Unlike anywhere in the country, Hyderabad is witnessing more pre-launch scams even after establishment of the RERA. Before RERA, many developers and channel partners in Gurgaon and Noida have cheated innocent people. The then Congress government framed the RERA Act with the intention to prevent such scams recurring in future. After the BJP came to power, it has encouraged establishment of RERAs. As a result, there are no pre-launch sales in States like Maharashtra, Karnataka, Tamil Nadu, Haryana, and Uttar Pradesh. But in Telangana, there is a complete different scenario. The Telangana State RERA, which was set up by Municipal Administration Minister KT Rama Rao with some objectives, has completely failed. The pre-launch scam of the Sahithi group caused lot of humiliation for Telangana State all over the country. As a result, the State government is now being blamed for failing to keep tabs on the builders against collecting amount illegally from people in the name of pre-launch and UDS offers.
No derth of companies indulging in prelaunch sales
There is no derth of companies which are selling flats through pre-launch schemes in Hyderabad. They are flourishing and expanding their operations without much trouble. Ira Realty, Bhuwanateja, RJ Group, Jaya Group – more than 100 such companies have started this illegal business. In fact, a company called Urban Rise has earned expertise in selling flats under pre-launch sales after Sahithi group. The company has sold all flats in its three projects under pre-launch schemes itself. The surprising part is that the Telangana RERA has granted final approval to all these three projects which sent a wrong signal that even if pre-launch sales are taken up, builders can obtain permissions from RERA without requiring to pay fine. As a result, the pre-launch companies now have no obstacles. These companies have created such a situation in the market that even genuine builders are forced to take up pre-launch sales and those who are not ready to sell flats under pre-launch schemes might fear that they were making a huge mistake and were lagging behind in catching up with the new trends.
TSRERA turns blind eye
It is now an open secret that the TS RERA chose to turn a blind eye to the illegal activities of Sahithi group, despite knowing that the company was illegally collecting money from buyers under the pretext of pre-launch schemes. Thus, people are raising many questions as to why RERA did not serve any notices to the Sahithi group and if served, why it was not pursued. If the authorities responded earlier, gave notices and took appropriate action, many home buyers would not have been cheated. The TS RERA was established to protect innocent buyers from fraudulent builders, said Minister KT Rama rao after inaugurating its office here earlier. However, it is clear that a company owner illegally collected Rs 900 crore in the State, from prospective buyers and the RERA remained in deep slumber.
Need for immediate action
The State government remain one step ahead of the scamsters and collect all the details pertaining to companies like Sahithi group which are violating the RERA norms.
- The RERA should involve the buyers and ask them to provide information about the companies from which they bought the flats under the pre-launch sales. Thus, a scare can be created among the builders who sold flats under the pre-launch offers and pressurise them to complete the projects.
- Notices should be issued to such pre-launch companies and the progress of these projects should be monitored constantly. Precautionary measures should be taken immediately, even though monitoring the work progress of these projects is not withing the responsibilities of RERA.
- RERA authority should prepare a data base of the developers who sold properties under pre-launch sales.
- A wide-range publicity campaign should be run by cautionining the builders against selling flats under pre-launch schemes.
- People will not invest in such scam projects in the future only when the State government initiates proactive measures.
- Considering the middle-class population, the State government should start efforts to build affordable houses. Otherwise, there is a risk that unscrupulous builders offer flats at low rates and lure innocent buyers.
- The government should act responsibly and set up a full-fledged RERA as well as an appellate tribunal. Even though the RERA Act came into force in 2016 across the country, the authority was constituted in Telangana in 2018. However, the authority has been criticised for limiting itself to registering the real estate projects rather than addressing the problems faced by the sector.
Ban YouTube channels promoting pre-launch sales
Some YouTube channels in the State are specifically promoting pre-launch sales. Through their videos, they are promoting the projects with pre-launch offers. They are running a false campaign saying that people investing in a particular project, can earn double their investment. Telangana RERA should take immediate action on such channels and ban them.
