The
Bombay High Court ruling treating brochures as a part of the Agreement will
bring in greater transparency in the real estate industry, reports Yogesh
Sadhwani.
Developers
who over-promise and under-deliver better beware. According to a recent Bombay High Court
ruling developers will now have to actually deliver on all the fancy promises
they make in their marketing literature.
In
his land mark judgment passed on March 16, Justice K.J. Rohee of the Bombay
High Court ruled that though the brochure printed and circulated by a developer
was not part of the agreement, but can be so treated Justice
Rhohee was hearing two petitions one filed by the residents of Maduvihar
Co-operative Housing Society (CHS) against the developers, M/s. Jayantilala
Investments and BMC and another filed by the developers against the
residents. Both the cases dealt with
construction of an additional building on the plot that was earlier depicted
as open space and recreations area in the brochures.
While
the residents contended that the additional building couldn’t come up on the
plot as it was shown as open space in the brochures while selling flats in
Madhuvihar, the developers said that they were within their rights to do so.
After
hearing both the sides, Justice Rohee passed the Judgment in favour ofresidents. He not only asked the
developers to convey the entire property in favour of the housing society but
also restrained them from constructing anything on the vacant plot. The vacant space depicted by the developers
in the brochures played a vital role.
The buyers have lauded this Judgment, while the developers say that only a small
section of players who do not believe in delivering what they promise will be
affected.
Advocate
and Consumer activist Hemang Jariwala says, “While booking the flat, the buyers
are show a rosy picture,. It is only
when they sign the agreement, by which time they have paid a huge chunk of the
consideration, they come to know that several amenities shown in the brochure
has been deleted. A buyer has no way to
back out. With the HC Judgment, however,
the developers will no longer be able to take unsuspecting buyers for a ride.”
Thereal estate players, however, point out that only a handful of developers would
be affected by the judgment. “Many time brochures are not indicative or reflective
of the reality. This would affect only a
few people. I don’t think the majority
will be affected,” says Nirajna Hiranandani, MD, Hiranandani Constructions Pvt.
Ltd.
Mukesh
Patel, Knowledge Worker, Neelkanth Group says, “Whether it is a promise made in
a brochure or an agreement,, a commitment is commitment and all reputed
developers would live by them. But at
the same there should be some flexibility, especially in terms of large
layouts.”
Other
believes that alterations in plans are not done deliberately. “The reason why
most alterations take place is because there are changes in the FSI norms and
the developers obviously want to maximise their profits.
There
are times when the developers have to alter the designs of the originallyplanned buildings to cater to certain class of people. In such cases if there
is additional FSI left, they construct more later,” justifies Suresh Haware,
Haware Engineers and Developers Pvt. Ltd.
He quickly adds that a handful of developers however, however, blatantly
abuse the trust that the buyers repose in them.
Haware
says that any sensible developer who is conscious of his image and wants to
remain in business, will never deviate drastically from his initial plans or
break his promise. “It is only a few who
have tarnished the image of the community”, he says.
Similarly
Savio D’Mello, Group Head of Ekta Supreme Housing, points out that brochures
are printed on the basis of visual effect. “The exact dimensions are never
mentioned. Moreover, all depends on
sanctions from the civic body. All
genuine developers deliver what they promise and at the same time keep their
own profitability in mind,” he says.
All
the developers, however, admit from now on even the reputed ones, who never
intend to dupe the buyers will have to exercise extra caution while designing
brochures. Giving real estate anindustry status and designing a code of conduct is another way to put an end to
such problems and bring in greater transparency, concludes Haware.
The residents of the western suburbs in Mumbai have come forward to help the State
Government in black listing the builders who have cheated citizens under the
guise of providing houses under the Slum Rehabilitation Authority or SRA
Scheme. The residents from Vile Parle, Santacruz and Andheri Station to the
Governor S.M. Krishna’s bungalow at Malabar Hill on April 3. Though this yatra which will traverse 25 km, the residents want the entire city
to know about the builders who have cheated them by making fake promises.
Mr.
Asmitbhai Muchala, a resident of Gilbert Hill said, “We have come to know
through the media that the Chief Minister during the State Assembly session has
said that the builders who have cheated the tenants under SRA scheme will be
blacklisted. Taking a cue from this, we
have gathered residents who have been cheated by the builders and have planned
to take out a rath yatra. We want to make people aware of the
fraudulent behavior of the builders in the city.
Ms.
Saira Patel, a resident of Andheri said, “For the past ten years, Srirang
builders had promised me and other 100 residents proper housing under the SRA
scheme, but there is yet no sign of any building coming upon the plot at
Andheri.” She also said, “Our complaints went unheard in the past but this time
we will take out a yatra and will present a memorandum to the Governor. We will also demand a thorough inquiry
against the errant builders.”
Mr. Kantilal Maniyar, a resident of Santacruz blamed
K.K. Developers of paying more attention to his private constructions which are
ready for sale rather than completing SRA
more details
No comments:
Post a Comment