Dream house built on false promises?

Some instances of how apartment buyers are taken for a ride by builders

In 2009, Ranjith’s long-time dream to own an apartment seemed to come true when he saw an advertisement in a newspaper. To Ranjith, it looked like it was meant exclusively for him, as all his expectations, including the budget, suited him perfectly. He went to the promoter’s office and came out a happy man because he was going to own an apartment within the next couple of years, with far more facilities than promised in the newspaper. Ranjith took a housing loan from a private bank, as suggested by the builder.

However, trouble started when work on the building did not commence even after a year. The builder told him that this was because of the delay in getting the necessary approvals. Later, work started, but progressed at a snail’s pace. At the end of two years, when he had to take possession of the flat as per agreement, only the brickwork had been completed. By then, Ranjith’s EMI payments to the bank had begun and he was paying his monthly rental as well. This became a huge burden and the initial euphoria of owning an apartment turned out to be a nightmare.

He wrote numerous letters and emails to the promoter but rarely received a response. If at all there was a mail from the builder, it was no more than a demand for payment. Finally, the apartment was handed over last month, but the common facilities that were guaranteed are yet to be provided. An aggrieved Ranjith is, today, considering approaching the Consumer Fora to seek redress.

In another instance, despite a two-year delay, common amenities are yet to be provided, but the builder has handed over possession of the apartment by making the buyer sign a document which stated that possession was given after completion of all work, including amenities. Since there was already an inordinate delay and he was paying the EMIs towards his loan, apart from rental commitment, the complainant had no option but to sign the document and take possession of the apartment. He immediately informed us and we advised him to send a letter on the same day, registering his protest and stating that he had been forced to sign the letter. We also asked him to list out all the pending work and demand quick completion.

In yet another case, there were three phases to the project. One phase was almost completed and around 200 buyers took possession of their apartments almost two years ago. Apart from the common amenities that were pending, the builder had taken around Rs.75,000, from each buyer, towards club house maintenance facilities, at the time of purchase. However, till today, no club house exists. The builder claims it will be constructed after all the three phases are completed; but, till date, there are no signs of any construction coming up. The owners’ association has decided to file a complaint to the Consumer Fora.

There are many such complaints against builders. It is important for promoters to realise that an apartment is a lifetime investment for most buyers, and they suffer not only monetarily but also psychologically when there are uncertainties about their ever owning the apartment they have invested in, and act with a conscience.