Will Credai Ban Pre launch companies in Property Show?

After successfully organizing its 10th edition of Property Show in August this year, CREDAI Hyderabad is all set to host the 11th edition of Property Show at Hitex from February 11 to 13. While elaborate arrangements are underway for the finest property show in a planned manner, CREDAI Hyderabad chapter appears to have not drawn up any definite plans to thwart the companies offering UDS/pre launch sales which are competing with Covid-19 pandemic in challenging the future of the construction industry.

Due to the development being carried out by the State government and the uncertainty in the neighboring state, the construction sector is flourishing in Telangana especially Hyderabad. But CREDAI Hyderabad did not take any concrete steps to prevent the damage being caused by some fraudulent developers in the name of UDS/pre launch sales. People are unable to understand if the CREDAI Hyderabad are unable to gauge the danger posed by these companies or have they decided to just ignore them. The latest edition of its property show is likely to confirm whether the Confederation would allow these companies which sell properties illegally to share the same platform with those developers selling their properties genuinely or would they be banned from participation.

CREDAI Hyderabad president Ramakrishna Rao told the media persons at a press conference that only projects approved by TS RERA would be included in the exhibition. However, some builders are taking up UDS and pre-launch sales to sell their plots and flats. Later, they are applying for approvals from local bodies and RERA authorities. Some other companies are pursuing both sales and approvals simultaneously. Thus, they are taking up sales in illegal as well as legal methods after getting relevant permissions. Whether the CREDAI is taking any measures to prevent such companies from participating in the property show, remains a thousand dollar question.

Are they allowed at property show?

The CREDAI Hyderabad office bearers must understand that no construction company will sell their flats/plots openly under the prelaunch and UDS schemes at the property show. Though the Confederation is insisting that only RERA approved projects should be promoted, the construction companies obviously will not give an undertaking in this regard. It would be a challenge for the CREDAI office bearers to keep a surveillance on which company was making which offer to each of its customers. The construction companies are interested in selling their properties and these companies will have their representatives explain about the UDS/prelaunch options to their probable customers – either at the expo or later.

For example, Chennai-based Alliance Group has paid large sums to its realty agents and sold several flats in its Bachupally Urban Rise project even before getting RERA approval. Initially promoted as a 23-storey structure, later the height of the apartment project increased to 33 floors. Now, the company received approvals from RERA and local bodies among others. Similarly, the PVR Developers also is known for UDS and pre launch sales.

* Vasavi and Sahithi Construction groups are well known for selling most flats in UDS and pre launch sales. TV9, a popular news channel aired a series of news reports on these companies not long ago. Companies like EIPL Group and Ira Realty fall into the same category.

Double standards?

So, how do CREDAI Hyderabad officials plan to stop such companies from participating in the property show? Will the builders association allow the companies taking up sales illegally and those selling legally on the same platform, just because the former obtains permissions after carrying out illegal sales? What sort of message does the CREDAI want to convey to the government as well as home buyers? Though it has been campaigning against UDS and pre launches, will CREDAI allow such double-faced companies to participate in one of the most popular property shows of Hyderabad? Or will opt for double standards? It’s high time that CREDAI leadership thinks a bit smarter and bans all those indulging in UDS/pre launch sales from participating in the property show. Only then, CREDAI Hyderabad can shed its double standards image and instead, multiply its brand image.