In Mumbai a consumer forum has directed a builder to pay a compensation of Rs.4 Lakhs each to two flat buyers and also to refund Rs.3.5 Lakhs they had paid to the builder in 2009 for 900 Sq-ft flats in Bhand up.
The forum observed that not refunding the amount despite the project running into legal trouble amounted to deficiency of service. The forum further held that the very act of the opponents of accepting booking price from flat buyers having reason to believe that development right in respect of land in dispute was cancelled by the land owner is definitely objectionable and so, they ought not to have accepted the booking amount from the flats buyers.
Residents of Govandi Rammohan Shenoy and Priti Sak-hardande had lodged two complaints in the Additional Mumbai Suburban Consumer Disputes Redressal Forum on October 14; 2011.They had booked two flats on July 21, 2009, on the 5th and 6th floors of a project by Sharma Realty in Bhandup West. In the complaint they alleged that despite paying 10% of the amount, the builder did not start the construction for one and a half year. Finally, on April 2011, the buyers requested for refund of booking amount for which they did not get clear answer from the builder.
Hence, the complaints lodged a complaint with the forum alleging that the builder published for construction of another project on the same site. The duo alleged that this showed that the opponent‘s intention was to defraud the complainants and other buye
Credai seeks tax sops for affordable
Credai realtor’s body has sought tax incentives on development of affordable housing projects and interest rate reduction on home loans to below 7 per cent in their budget wish-list to boost growth in the sector.
The other demands made by the Confederation of Real Estate Developers Association of India (Credai) were single –window clearance for the real estate projects and granting of industry status to the sector. In a statement the chairman of Credai Mr.Lalit Kumar Jain has asked the centre to allow tax (direct and indirect) concessions for affordable housing projects.
He has further said that that at present, the interest rates charged by the banks both to the developers and to the home buyers are at an all time high and need to be brought down. He has said, at least the interest rate for home buyers has to be brought below 7 per cent. Further, the realty industry is going through tough times as sales have come down, home loans numbers are dropping and cash crunch is delaying the deliveries. He is of the opinion that the affordable housing should be treated as priority sector and for forming separate policy to boost this segment.
Jain also advocated an industry status for the realty sector, which would pave the way for easier funding to the developers at lower interest rate. Another long pending issue in the sector is single window clearance. At present, the approval process is very lengthy and takes around 1.5 years to 2 years for approval, Jain said.