“Proposed RERA venture” is new guise for pre-launch sales by Yoshita Infra

Will developers continue to sell flats under prelaunch schemes?
How long such illegal sales will be allowed?
Did they respond to the RERA notice?
Is fine of 10 percent of the project value imposed?

No DTCP permission or RERA approval. But some developers are showing brochures and selling plots shamelessly and brazenly. Though there is no guarantee that permission will be sanctioned for a certain layout, numerous fraudsters are resorting to such illegal sales and looting the innocent buyers of their hard-earned, with the confidence that none would dare to question them.

Even those from neighbouring States are coming to Hyderabad and starting these illegal sales, with a confidence that none of the authorities including RERA would be able to initiate action against them notwithstanding the advance amount looted from the people under pre-launch sales. Miyapur-based Yoshita Infra is selling pre-launch plots in Sadashivapet on Mumbai highway at cheaper prices. The responsibility of RERA authority is to bring such companies who are selling plots by ignoring even its notices.

Yoshita Housing Infra Developers launched the Stellar Estate venture in Sadashivapet last year. This venture has 850 plots developed in about 65 acres. The cost of a 160 yard plot is Rs 11,500 per sq.yard. About 90 percent of these plots have been sold at this price under pre-launch sales. However, the company is yet to register these plots and has been delaying registration stating that the plots will be registered as soon as the DTCP permissions are received.

As the time passed by, neither the venture receive permissions nor the plots were registered. It is learnt that one of the crucial reasons for the delay in registration of plots was that some of the survey numbers where the venture has been developed, are on the banned list for registration as per the State government orders. Some buyers are running from pillar to post at the Yoshita Infra Housing office in Miyapur asking about this issue. However, the company is yet to respond.

If this was the lone venture by Yoshita Infra, we could have considered it as a genuine mistake. But the company is not ready to stop anytime soon as it is planning to develop another 50 acres land adjancent to the existing venture. The plots are being sold through social media without getting relevant permissions from the urban local bodies or the RERA. When Real Estate Guru telephoned the company’s owner and questioned him on illegal sales, he is giving inconsistent answers. While he kept claiming that all permissions will be given soon, he was unable to answer why the permissions were not received yet. The officials said that it was illegal to issue advertisements and sell plots without the RERA permission. They confirmed that the said venture did not get clearance till date.

10 percent fine!

A penalty of 10 percent of the project value should be levied as fine on Yoshita Infra, which sold the plots without obtaining necessary permissions from the DTCP. Also, after obtaining DTCP permission, RERA should not grant permission to such companies which are violating the norms. If permissions are granted, these fraudsters are likely to continue such projects and eventually, there would be no end to pre-launch sales.

Sales under the guise of “Proposed RERA Venture”

Although the rules say clearly that it is prohibited to sell plots without RERA permission, Yoshita Infra is selling plots by printing brochures saying that it is a “DTCP and RERA proposed venture”. Things cannot get any worse and yet, the officials are not initiating any action against these scamsters as per RERA rules.