Open house: What steps should GMADA take to stop buyers from investing in defaulters’ projects?

While buyers continue to be duped by developers, consumer courts and the Real Estate Regulatory Authority (RERA) fail to address most issues. The Greater Mohali Area Development Authority (GMADA) should come to their rescue by cautioning the buyers. It should notify the general public by advertising in three leading newspapers of the region. The notice should also be put up near the offices of the developers. The GMADA office should put up a list of such defaulters in their respective offices at prominent places. The names of developers defaulting on payment also be displayed at the offices of the Deputy Commissioner, Tehsildar and PUDA.

NPS Sohal, Chandigarh

QUESTION

Five deaths due to asphyxiation in two incidents in Mohali district has raised a question mark over the safety of workers in industrial units. Lax implementation of labour laws has turned sewage pits into death traps for workers who are made to do cleaning without safety gear. What steps should be taken to prevent such incidents?

Suggestions in not more than 70 words can be sent to openhouse@tribunemail.com

Beware of defaulters

People should be aware about developers as to whether they have taken all NOCs from GMADA and others. Hefty penalties should be imposed on them for violating the rules. GMADA should put up a list of builders every week in leading newspapers as well as on its website so that people know about their projects.

Sonu Verma, Chandigarh

Eye-opener for potential investors

The recent news report of famous developers having huge liabilities towards GMADA is giving sleepless nights to investors who have made heavy investments in various projects. It is an eye opener for new investors. Delayed announcement by GMADA regarding the financial status of these developers is a matter of concern. The financial status of a project duly authenticated by the authorities concerned be displayed before its launch. It will be appropriate if the status is made public every three months during the execution of the project.

Gobind Ahuja, Chandigarh

Connivance of GMADA officials, developers

Aspiring property owners have not only been defrauded by private developers but also GMADA itself. People, who were allotted plots in Gateway City, Sector 119, by GMADA, have been doing rounds of various courts over various issues such as non-provision of connecting road even seven years after allotment and full payment. GMADA has woken up so late and issued an advisory when hundreds of people have been defrauded by the developers. It cannot happen without the connivance of private players and GMADA officials. Despite the RERA Act, helpless people are being fleeced by the property mafia. GMADA must make it compulsory for buyers to take an NOC from its office before investing in any real estate project.

Wg Cdr JS Minhas (retd), Mohali

Invest only in projects approved by RERA

It is often seen that developers take property buyers for a ride. The need of the hour is to invest only in RERA-approved projects. There should also be a clause for late delivery charges. GMADA or other housing authorities should closely monitor the progress of projects and ensure that possession is handed over to buyers on time.

Col TBS Bedi, Mohali

Publish defaulters’ list every month

GMADA should take 100 per cent payment from developers before they start selling plots or flats. A list of defaulters must be published every month in public interest. Phone numbers of GMADA officers concerned may be displayed at the site. It should issue an authorisation letter to developers for receiving money against plots/flats. An NOC issued by GMADA may be displayed at the site.

Kirpal Singh

Introduce rating system

The development authority (GMADA) should create a RERA-inspired framework that can provide buyers with comprehensive information about properties and developers of the area. To streamline small developers’ lobbies, a rating system could be introduced. Developers with no payment dues could be given top ratings.

Chetan Verma, Mohali

Onus lies with GMADA

Cancellation of allotment of two developers has worried a large number of home buyers who have invested in the projects after raising bank loans. There may be many more unknown to the public. The onus lies with GMADA which kept important information. It needs to publish a list of all defaulters at regular intervals to safeguard public interest. Expose the developers to public scrutiny.

Wg Cdr JS Bhalla (retd)

Put information on developers online

GMADA should put all information about registered developers online. The public can check the authenticity of the builders from that portal. The owners, who haven’t got possession of their plots/flats on time, should be able to register a complaint online. Hefty penalties should be imposed on developers in case of delay in possession of plots/flats. The government needs to act tough to stop harassment of the public by developers.

Abhilasha Gupta, Mohali

Create awareness among buyers

Developers are taking advantage of unawareness among people about official websites. GMADA should use the traditional ways of communication such as pasting pamphlets at project sites besides digital mode like Google news updates to make people aware of disputed properties. Notice boards displaying the status of property should be put up at the site. Regular inspection of the sites will a long way in safeguarding people’s investment.

Prof Kanchan Garg

Safeguard interests of homebuyers

Developers raise loans from banks or private players for developing various projects. Recently, GMADA banned some of developers for defaulting on payment. The authority should make buyers aware against investing in the projects of defaulting developers.

MR Bhateja, Nayagaon

Launch helpline

Investors are left in the lurch when a developer defaults on payment. GMADA should make it mandatory for every project to have a board with a QR scanner on necessary permissions. The sales brochure of the project should have a registration number. GMADA should introduce a helpline for buyers. The developers’ association of Mohali needs to organise regular meetings and bring transparency in their projects.

Sunny Dhaliwal, Chandigarh

Present process should be reviewed

To protect buyers’ interests, the present process needs to be revisited and a robust and foolproof one put in place. It should be made mandatory to take time-bound NOC online from GMADA and RERA. Tehsildars should personally check this NOC in respect of private townships before sale deeds are executed. Defaulting developers should be criminally prosecuted.

Vijay Shukla, Chandigarh

Impose hefty penalties

Actually, GMADA should impose hefty penalties on developers who default on payment. There is a need to create awareness among buyers about the risks of investing in projects of erring developers. GMADA must collaborate with RERA to ensure that developers comply with all regulations and guidelines. Maintain a list of developers who have defaulted on payment.

Anita K Tandon, Mundi Kharar

Frame stringent rules to save public

An inquiry should be conducted as to why GMADA did not ask both developers to deposit the fee dues so far. The common modus operandi used by real estate firms is to pool in money to buy big chunks of land for developing residential complexes. However, these ultimately default on fee payment running into crores. It has been seen developers pay 10 per cent of the total fee, get sites allotted and start pre-launch of projects to make money. After taking money from buyers, they usually default on payment. GMADA should, at least, now make public a list of other defaulting developers. The regulatory authority and GMADA should formulate foolproof policies to save the public from such a situation.

Sanjay Chopra, Mohali

Act tough against erring developers

GMADA should take stringent action against defaulting developers. A notice board displaying a list of defaulters be put up for the public. It should caution people against falling prey to defaulters.

Sumesh Kumar Badhwar, Mohali

Compensate buyers in case of default

GMADA must ask private developers to deposit at least 75% of the money needed to acquire land and the rest in three years. In case of fraud, the authority can, at least, compensate the buyers. While buying plots from developers, people need to check with RERA.

Savita Kuthiala

Take steps now

GMADA should take steps to stop buyers from investing in projects that have defaulted on payment or failed to take certain clearances. There should be stringent action taken against erring developers.

Adish Sood

Loopholes in sale deed agreements

Foremost reason for developers defaulting on payment is sale deed agreements having anomalies or shoddy conditions. It’s, therefore, imperative that agencies such as GMADA must ensure that the contract or sale deeds have stringent conditions with the provision of legal action. Since the Punjab RERA was established in 2017, registration of developers with it has been obligatory. Buyers are advised to invest only in RERA-registered projects so that their interests are safeguarded.

SS Arora, Mohali

Ensure vigil at all levels

GMADA should ensure that rules are strictly followed before, during and after the registration of a project. Ensure that developers take permissions required before starting construction. In case of violation of guidelines, the authority must get construction stopped immediately. The public should be advised not to invest in tainted projects. It will save a lot of investors from financial loss and unnecessary harassment.

Bharat Bhushan Sharma

Take legal action

There have been several cases of developers defaulting on payment, leaving investors in the lurch. GMADA should blacklist all such defaulters and publish their names in all local newspapers. Their names should also be put up on the GMADA website. Unless people are made aware of all such defaulters, they will continue to fall prey to erring developers. GMADA should take legal action against defaulters.

Dr Anil Kumar Yadav, Chandigarh

GMADA should develop sites itself

There have been many complaints where developers abandoned their projects midway, causing loss to GMADA as well as investors. In certain cases, GMADA or investors had to move the court. To prevent such situations, GMADA should take all projects in its own hands.

SK Khosla, Chandigarh

Reducing stamp duty on property

There are huge taxes and fees involved, which developers hardly pay in advance. They make payment in instalments as they collect money from prospective home buyers. Bank guarantee is one option which will ensure financial safety of buyers. The government should rethink of reducing stamp duty on property, which will lead to a reduction in property prices as well as use of black money.

Avinash Goyal, Chandigarh

Run a check on projects

An advance should be taken from a developer and only after that should the company be allowed to launch sale of plots or flats. All those who have suffered loss due to defaulting developers should be suitably compensated. Customers should check all details of developers before investing in their projects. GMADA should try to resolve the dispute instead of immediately cancelling projects. The possession should be given only after the entire bid amount is paid.

Saikrit Gulati, Chandigarh

Investors should be careful

It is the duty of GMADA to see developers being allocated projects are financially sound. It must go through developers’ record in respect of their earlier projects. Investors should be very careful before investing money in any project.

Sukhwant Bhullar, Chandigarh