Saturday, March 28, 2009

DLF customers gang up, pressurise developer to commit refund

Latest developments in the DLF's chennai project from ET.

DLF customers gang up, pressurise developer to commit refund
29 Mar 2009, 0633 hrs IST, ET Bureau

CHENNAI: Customer pressure seemed to have got the better of India’s realty giant DLF. Nearly 300 such buyers, who have backed out of the company’s prestigious ‘Garden City’ project in Chennai, refused to leave its premises till they got a written assurance that their money would be paid back in full.
Consequently, DLF has assured them that the formal refund letter addressed individually to the exiters would be given by April first. In its communication dated March 28, 2009, DLF Southern Homes, the special purpose vehicle executing the project on Old Mahabalipuram Road, said "the process of full refund will commence from 1st April, 2009, and will be completed before 30 September, 2009. The priority of disbursement shall be based on the order of first exit letters received and will be intimated by 10th April 2009."
For over a year and more, problems for the country’s largest listed developer have only been mounting. It has been facing the ire of customers, who made bookings in the 3,493 apartment Garden City project on 53 acres, which marked the Gurgaon-based realty biggie’s maiden entry in the city.
Apparently, the total number of exiters from the project was pegged at 580 out of its existing base of 1,800 customers. DLF Southern Homes was to have given a letter outlining the timeline of refund for all the exiters. But that did not happen, provoking angry reactions from the exiters, who refused to leave DLF premises until they got one.
The buyers, who advanced payments, have organised themselves into a Google Group, constantly monitoring the builder’s progress. Last month, as part of the attempts to appease its customers, wanting to exit from the project, DLF had brought down the prices from Rs 2500 to Rs 2600 per sq ft against Rs 2800 to Rs 3200 per sq ft for its existing customers. For new customers, the basic price was fixed at Rs 2750 per sq ft.
But this too seems to have not made any headway. For, on Saturday evening, nearly 300 buyers converged at the DLF office, seeking a written assurance from the developer to refund their money paid as advance for the project.
Earlier this month, the realty major had expressed its commitment to complete the project on schedule. This was in the wake of reports about consumers shooting exit letters.
If delayed approvals triggered anxiety and panic among existing customers, DLF Southern Homes MD K K Raman allayed the fears stating that "the construction activity is in full swing and we are well on schedule. We are committed to hand over the homes by April to June 2011, as originally committed."
"We do not foresee any problem in adhering to the timelines as we are adequately capitalised," DLF ED J Subrahmanian further said.

15 comments:

Anonymous said...

The apartment owners in bangalore who have suffered a worse fate should also group together and bring this irascible builders to book.One of the big builders in B'lore, adarsh has taken owners for a big ride for 4 to 5 years in the adarsh palm retreat project and only now T1 is getting ready for occupancy while even approvals have not come for T3 and T4.The interset money accrued to the builder for this duration is equal to half the cost of the flat in some cases.When asked to withdraw their money the response is company policy does not permit the same.DLF customers in chennai have shown what power collective bargaining can do.

Anonymous said...

First of all, my best wishes to all buyers who have shown the courageous action.
There are two qualities to be noticed,
1. Unity among the buyers.
2. Action against malpractices.

In last post, I mentioned that leadership quality can stand way above any innovations. I salute the person who have united the buyers & saved them
against the fraud. India has lot of political leaders but when it’s
time for common man’s benefit or rights there is no response. People should
not hesitate to take the leadership for common cause.

When Builders have Associations, why can’t buyers have associations?

Today lot of forums & site post information about buyers rights, builders’ fraud, construction quality etc. We should form a federated network of it. I would request VIK if it’s feasible can we have a linkage to such sites & forum.

http://www.indiaconsumerforum.org/


So guys let it fall then only pick up minimum 50% price cut is guarantee.


Vulture.

@di said...

@Vulture:
and why would you think that innovation and leadership are not related? Innovation does not always mean writing an algorithm or designing a super computer. And leadership does not always mean gathering a slogan shouting crowd or organizing a revolt.

a true leader is the one who is innovative in his/her ideas because of new challenges the world present in everyday life be it society, politics or in technology.

The truth is that leadership can not be taught and so is innovation. The assembly line that today's Engineering and MBA colleges are only generate clones.

Anonymous said...

Leadership is the behavioral trait.

http://www.skagitwatershed.org/
~donclark/leader/leader.html

The innovation word is used in the context of technology.
Agreed, leadership style can be innovative.

Vulture.

Anonymous said...

False Property prices reported on Indian Newspapers

Shriniwas K said...

Stop fighting on MBA please :)
What about the Delhi govt Bailing out Emaar MGF ???

http://economictimes.indiatimes.com/News/News-By-Industry/India-to-buy-20-mn-of-Emaar-MGF-flats---Report/articleshow/4332977.cms

Is this true that our tax payer money is bailing out a gangster's firm in Dubai ?

Anonymous said...

Slowdown blues: Professionals top list of defaulters

Slowdown blues: Professionals top list of defaulters

Allahabad Bank Executive Director S K Dua agrees that the slowdown has affected the debt recovery adversely, while the major chunk of defaulters comprises the educational loans. According to sources, around Rs 2.5 crore of debt is lying unpaid, of which 1,648 defaulters are educational debtors.

The banks are struggling hard to keep their non-performing assets (NPA) below 10 per cent as per the Reserve Bank of India (RBI) guidelines.

Anonymous said...

Dying jobs force migrant labourers out of Bangalore

Dying jobs force migrant labourers out of Bangalore

The real estate sector, once a flourishing business avenue, has literally been grounded by the global economic slump. And with it the woes of poor migrant construction workers too have increased.

Many new flats and deluxe houses are waiting for buyers and several developers and builders have been forced to stall their future projects.

"No survey has been done so far to estimate the exact number of unsold flats. But looking at the effect of global economic recession in the city's real estate market, the figures could be in hundreds," said Raj Menda, president of the Confederation of Real Estate Developer's Associations of India (CREDAI).

CREDAI is the apex body of organised real estate developers and builders across India. "As there is no business, there is no work. Thousands of construction workers are jobless now," Menda added.

Anonymous said...

400,000 PSU officers get another pay hike

Government is pouring money into the most inefficient parts of the economy. There was once a famous economist who was asked "If you were given the charge of the economics of this country can you turn it around for good"? The answer -> "No I would not be. That's because then I would become a politician".

Dr. Manmohan Singh is a perfect example of this. He is not a visionary leader, but rather a bureacrat.

Anonymous said...

If you will not buy it, they will cut your pocket.
Yes this is the 3rd bailout package to help the RE, on the expense of tax payer’s money.

What package is provided to the people who have lost the livelihood due to recession?
What help is provided to IT who is earning foreign currency for the country?
What help is provided to NRI who is sending 250Bn forex to country?
Why Indian businesses can’t generate enough forex for the country?

On what basis financial feasibility of project was evaluated? 2BHK flat for 2Crore in up coming game village. Even in boom time it’s hard to get any buyer.

http://www.pressdisplay.com/
pressdisplay/viewer.aspx


Vulture.

Anonymous said...

India economy to be much worse in 2009

“India's economy would be "significantly worse" in 2009 than in the previous year, a top policy advisor said on Friday, and the woes would not end in the fiscal year ending March 2010.
Is the problem going to end in 2009/10? I don't think so," Planning Commission Deputy Chairman Montek Singh Ahluwalia said. "Our latest assessment, on calendar year basis, is that 2009 is clearly going to be significantly worse than 2008."


http://in.reuters.com/article/economicNews/
idINIndia-38737120090327

shailesh said...

Realty companies on go-slow mode

Promised delivery in September 2007, Pavan Nagaraj saw his dream home turning into a pipe dream. The 30-year-old Bengaluru-based professional had paid Rs 29 lakh for an apartment in Ittina Abha, developed by Ittina Properties near the IT corridor.

shailesh said...

Falling property prices fail to lift sales

Kapadia is among those home buyers who are treading cautiously despite a slash in property rates. On a steady descent, the property prices across the city have dropped by 30-40 per cent from its peak rates. Realty research figures indicate that the average property prices in Mumbai, Thane and Navi Mumbai (Mumbai Metropolitan Region) have come down from its peak of Rs 8,136 a sq ft in June 2008 to Rs 4,607 a sq ft in March 2009. With 420 ready and 1,349 under-construction projects in the MMR, the mounting inventory has led to a more pronounced price cut in the latter category.

“All these projects that claim to offer flats at discounted rates for limited time only, are nothing but attempts to scare the buyers into buying their projects. Property rates are bound to fall up to 60 per cent. Not only are the developers starved for money, the buyers also have no money to spare. Also no buyer wants to put his money or risk taking a loan for buying an under-construction flat,” said Yashwant Dalal, president of Estate Agents Association of India.

He said the rates of even plush flats in prime areas such as Peddar Road have come down from a staggering Rs 1 lakh a sq ft to a range of Rs 60,000-35,000 a sq ft. In Bandra, it has dropped from Rs 25,000 a sq ft to Rs 14,000 a sq ft.” The prices in the area have fallen by 35 per cent from the peak rates of Rs 35,000-40,000 a sq ft.

shailesh said...

Property fair in Mumbai

Kandivali (W) costs around Rs 4,000-6,000 a sq.ft; Kandivali (E) Rs 5,500-7,000 and Borivali Rs 4,000-6,000. These areas are increasingly favoured because of their pricing and the convenience of shopping malls, educational and healthcare facilities and train connectivity.

Mulund and Vikhroli are also budget locations that are relatively less congested than areas of Mumbai.

They have the advantages of good road and rail connectivity to the hinterlands and also town-side, as well as a suitable bouquet of shopping malls and hospitals. Rates per sq.ft: Mulund — Rs. 4,500-7,500; and Vikhroli — Rs 5,500-7,500.

Thane ranks high on general infrastructure, affordability in terms of properties by reputed developers, and the fact that it is its own workplace catchment on many levels. The rates: Rs 3,000-6,000/sq.ft.

Navi Mumbai is a planned city with good infrastructure and its own distinct culture and lifestyle. Property rates are favourable, and there is a good range to choose from. Vashi — Rs 3,500-5,500/sq.ft; Kopar Khairne — Rs 3,000-3,500; Airoli — Rs 2,500-3,500; Sanpada — Rs 3,000-4,000; Nerul — Rs 3,000-4,000; Kharghar — Rs 2,500-4,000; Kalamboli — Rs 2,000-2,400; and Panvel — 2,000-3,000.

shailesh said...

Not a good start for realtors, jewellers

For buyers, this may sound good news. Property rates have been falling. In Juhu, Joy Builders is offering flats at Rs14,000-Rs15,000 a square feet. The rate earlier was Rs18,000 a square feet. Nair has an investor who wants to sell his flat in Lodha Grandeur at Prabhadevi at Rs18,000 a square feet, which is 40%-45% less than the earlier rate of Rs25,000 a square feet.

Dharmesh Jain of Nirmal Lifestyles in Mulund has offered flats at Rs4,500 a square feet and in Kurla, HDIL has rates of Rs5,351 a square feet. Another builder has offered flats in Andheri (west) at Rs7,600 a square feet. In Kharghar, Navi Mumbai, the rates are around Rs2,900 a square feet.

The Lodha group, which recently advertised flats at Rs1,999 a square feet in Dombivili, managed more than 150 bookings in a day. "I had a good response with 200 bookings. I am expecting more buyers," Jain said.