Prelaunch realtors must pay a fine!

(King Johnson Koyyada)

Realtors resorting to UDS/pre launch sales, appear to be under the impression that they were smart enough to hoodwink RERA. As soon as RERA serves notice, most of them are promptly responding with some excuse or the other, assuming that they will be spared from any further action. But they are totally wrong and the Authority would not hesitate to put the fraudulent realtors behind the bars. The builders who are celebrating their success in selling properties without RERA’s knowledge, must understand that they will end up before RERA at one point or the other. As registrations cannot be taken up with RERA approval, they will be charged with hefty fines inevitably. In case of failing to pay fine, the miscreant builder will be sent to jail under Section 59 (2).

The Telangana RERA has already issued notices to several UDS and pre launch property sellers. While there were responses from some organizations, others did not even bother to respond. However, RERA was not satisfied with the responses from certain realty companies. A majority of these firms claimed that they did not approach RERA for approvals as permission from HMDA was delayed. They just got themselves into a much bigger trap, unknowingly, as RERA started questioning them how they could commence the sales under UDS or prelaunch schemes without HMDA approvals. The RERA authorities have already collected evidence related to these companies and started imposing penalties strictly.

Change of land usage

Soon after paying some advance amount to the land owner, a few realtors are putting up the property for sale under UDS or pre launch schemes. While part of the amount is being paid to the land owner, the rest of the amount is being used to purchase another land. But considering the present scenario, it will take two-three years to change the land usage. People who purchase flats in such properties must be prepared for all these consequences including inordinate delay in execution of the project. And if the master plan roads pass through this land, they might even end up losing their lifetime savings. One will not come across such problems while buying the land or sell properties under UDS and pre launch schemes. The realtors discover such issues only when they apply for permissions. This is one of the major reasons why construction work on pre launch projects has not started for the last one or two years.