NRI buyers: Be doubly cautious
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Ajay Khurana, a NRI recently booked an apartment in Noida at an expo held in Toronto from a new developer. The suave executive of the developer convinced Ajay of a wonderful deal, which to his horror turned into a nightmare when he landed up in Delhi a few months later.
The construction was yet to commence with no signs of the roads and other facilities in sight as promised in the glossy brochures. His friends in Delhi further informed him that the project was a non starter with exorbitant prices. The developer's earlier projects were also held up due to litigation and approval issues. Ajay is not the only victim of such a situation, there are several unsuspecting NRIs who have been promised the skies but reality turns bitter.
Here are some of the possible problems that NRI buyers may face:
* Falsely inflated prices.
* Escalation during construction.
* Hidden costs not disclosed.
* Lack of permits and approvals while accepting bookings.
* Delayed construction.
* Poor quality materials, which are not as per specifications agreed upon.
* Sale or cancellation of booking without intimation to original buyer.
* Constructing on property under litigation attracting legal action.
There are developers across the country who try to sell off failed and disputed projects to NRIs at higher prices by targeted marketing campaigns abroad. Some of the common strategies adopted include:
* False photos and videos claiming actual site depiction to convince about the state of construction.
* False approval letters on clearances that cannot be verified by the NRIs.
* Offer of huge discounts on price per square feet from a hugely inflated rate.
* Additional facilities at no extra cost.
* Showing false government plans of developing infrastructure in that locality so as to make the project lucrative.