A large percentage of construction companies in Hyderabad are facing financial difficulties. Some builders are unable to pay salaries, while others are struggling to pay the electricity bills at the project sites. Others are downsizing employees. Construction companies, which were supposed to be lit up during Diwali, are in dire financial straits. The main reason for this is the UDS and pre-launch projects. Hundreds of crores worth of UDS and pre-launch scams are taking place in the construction sector, and genuine construction companies are voicing concerns that the government is not paying any attention. Why are the authorities who are acting tough against gambling, not focusing on pre-launches and UDS?
Some fraudsters, realtors and agents, have got the buyers accustomed to the UDS and pre launch offers. Thus, buyers are now addicted to them and asking for UDS or pre-launch offers in every new project. Genuine builders are the ones who are at loss due to the new trend, despite obtaining all the permits. As they are refusing such deals due to financial unviability, the buyers are going to the fraudsters who are offering properties at low price. Majority of buyers are not heeding to the warnings that buying flats under UDS or pre launch offers could be deceptive.
As a result, sales to regular developers are not encouraging. Therefore, there is an urgent need for the Municipal Administration department and RERA officials to take a firm stand against UDS and pre-launch projects. A special enforcement wing should be set up to curb them, rather than just serving notices and dusting off their hands. Permits for projects selling plots and flats through illegal ways, should be denied. Registrations should be banned for those survey numbers.
The Telangana State government should wake up from deep slumber and take a firm stand against UDS and pre-launch projects. Otherwise, many developers say that the construction sector in Hyderabad will collapse in the near future. With buyers not coming forward to buy flats that are currently under construction, the genuine builders are unable to obtain loans to complete their projects. In view of the increased land price and the cost of construction, it is not possible to take fresh permits and construct structures. If all construction projects are halted, the State government may have to provide financial assistance to complete them. Therefore, a large percentage of developers want the government to understand the seriousness of this problem and address it immediately.
Some dim-witted builders are signing agreements with the land owners and selling 40 per cent of the flats under the guise of UDS and pre launch offers. They are promising to construct 30-storey apartments. However, they are forgetting that the project will be completed only if they get the remaining 60 percent. Furthermore, if the permit fees and the increased construction cost are taken into account, it is impossible to complete such projects. However, many builders are fraudulently collecting money from people in advance. Genuine buyers of flats must think twice before taking a decision to opt for prelaunch or UDS offers. Rather than the price alone, they must check whether the project would be completed or not, before taking a final decision.
Builders are unable to understand what the urban people want and take up constructions accordingly. They are focusing on just a few fancy projects. Builders were respected when they took up horizontal constructions. But some developers are trying to construct vertical structures. Builders who have not delivered even a single project in Hyderabad, are now promising to construct 40-50 storeyed buildings. Even small realtors and masons are taking up construction of 20-30 floor projects. Real estate agents too have ventured into the construction sector. It is the responsibility of the government to make such developers to fall into line and deliver their projects as per norms. – a developer’s opinion.
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