Deepak Kumar, a Singapore-based NRI, booked a flat in January 2008 in DLF’s New Town Heights coming up in Gurgaon. Even though Kumar has already paid 42.5 per cent of the total cost of the flat, the developer has not started construction work. According to the company, the project has been held up as it has not received environment clearance. Disappointed with the lack of progress, Verma feels cheated. In today’s scenario, wherein realty prices are in free-fall, any delay means that the value of the flat he receives will be much lower than the steep rate at which he booked it two years ago.

Deepak Sharma is another buyer who invested in Vatika Group’s 500-acre township off the Gurgaon Expressway in 2008. When he visited the construction site, he found that even the foundation had not been laid. On enquiring, he learned that the developer has changed the location of the project. He had booked apartments valued between Rs 38-55 lakh and has already paid more than Rs 20 lakh to the company.

In the case of both the projects, over 90 per cent bookings have already been done. DLF’s project has booked over 3,300 flats and Vatika Group in its township project has made bookings for over 5,000 flats.

After facing the ire of groups of disgruntled buyers, the developers have in both the cases agreed to allow the exit option to buyers.

DLF and Vatika Group’s cases are the most well-known. The problem is by no means confined only to their projects. A large number of developers who made bookings in their upcoming projects are unable to execute them for a variety of reasons — the most common being diversion of funds to other projects. And now disgruntled buyers across the country are cancelling their bookings.

... contd.