WAY FOWARD - Delayed delivery: How to get out of the mess?
Ravi Sharma booked a 2-BHK flat in Greater Noida West (earlier Noida Extension) way back in 2010. His dream of owning a home in Noida was about to get fulfilled. He and his family members were ecstatic.But even after six years, he is yet to get the key to his dream home.Like Ravi, there are many homebuyers who are awaiting the possession of their homes. Their dreams of owning a home at best seem dim and at worst almost dashed. In such a precarious situation what measures the develop ers are taking or should take to regain the trust of the buyers?
In fact, in many parts of the country, projects are open for buyers only once they are completed.Sanjay Dutt, managing director, India, Cushman & Wakefield, says, “The primary reason for the loss of buyers' confidence is lack of transparency from the developer's side.“
Dutt has outlined various reasons which led to the loss of confidence of buyers on developers and the way to regain the same are mentioned below:
Inordinate and successive delay in project completion is one of the major reasons for loss of confidence of buyers. The developers should adhere to the construction schedule and strive for timely delivery of projects. This issue may be partially addressed once the Real Estate Bill that the Parliament has already passed, is implemented in letter and spirit.
DEMAND OF EXTRA PAYMENT
Any payment demand over and above the pre-agreed sum for a unit is an unwelcome move from the buyer's perspective. This is further worsened by the fact that developers seldom send out revised calculation based on unplanned amendments which leads to the need for such payment. Developers should send detailed explanations along with any such demand and ensure that the buyer understands the reasons.
QUALITY OF CONSTRUCTION
Mismatch between buyer's expectations and delivered construction quality is another reason for buyers' discontent. Hiring the services of a reputed construction company assures buyers of an optimum construction quality.
“Developers should put copies of all approvals along with area calculations on display for viewing by prospective buyers. This would instil confidence in buyers regarding the project and integrity of the developer,“ Dutt notes.
On how can they ensure a timely delivery, Dutt says that delays in regulatory approvals is one of the major reasons for delay in project timelines, so it is imperative for the developer to get approvals before offering the project for sale.
Ankit Aggarwal, CMD, Devika Group, says, “Ideally, there should not be any delay in delivery of projects, but in case a delay creeps in, there are provisions for the buyers to be compensated. Judiciary will be fair enough to judge if the developer was actually at fault or not.“
Rahul Chamola, MD, One Leaf Group, points out, “There are various factors involved which, if not addressed on time, result in the project being delayed. This, in turn, adds dismay at the ends of the buyer who find it really difficult to accept that they will not be able to take possession which was promised on a certain date.“
Pankaj Kumar Jain, director, KW Group, says deliberately delaying the delivery of projects is like an offence which adversely affects the goodwill of any developer. “It is therefore, a developer should always stick to the delivery timelines set for its projects. The developers should, first of all, create an environment of trust by expediting the construction of their projects and simultaneously updating their customers with the progress of construction work, so that their customers can make sure that their dream homes will be delivered to them as promised.“
Ashu Mathur, MD, Felicity Group, says, “Delay in delivery of project instigates negative effects such as increased costs, loss of productivity and revenue, besides loss of goodwill and reputation of a developer.“