Buyers' activism going in wrong direction: Supertech

Sources say buyers throng the office of Supertech on weekends over issues from delay in possession to registry of their apartments

Hari Raj Singh (name changed) paid a visit to the Supertech office in a jiffy on Friday to verify the approval plan of a project, in which he has booked an apartment. In the office, he found the company’s marketing officials trying hard to convince new customers that all the papers were in order.

The scene clearly shows the bad phase the company, which has been facing the ire of buyers as well as government authorities, is going through. On April 11, the Greater Noida Industrial Development Authority (GNIDA) asked Supertech to seal 1,009 flats in the company's project Czar in Greater Noida, citing violation of rules. Some residents of Czar had complained to GNIDA about violation in the sanctioned plan.

This is the second time the company has borne the brunt of buyers. In a previous case, the Allahabad High Court had ordered demolition of two 40-storeyed towers in its project Emerald Court in Noida, acting on a complaint by Residents Welfare Association (RWA). Supertech has challenged the order in the Supreme Court, where it is pending.

With the instances of developers going back on their commitments, buyers have been increasingly raising their voice against such errant builders. The real estate sector has witnessed a spur in buyers’ activism of late with even the country’s largest real estate player, DLF, not being spared. The Competition Commission of India (CCI) imposed a fine of Rs 630 crore on DLF acting on buyers’ complaint for making changes in the project plan without approvals. The case is now pending in the Supreme Court.

“Buyers’ activism is going in the wrong direction. One to two per cent of buyers tend to resort to malpractices, which is why such cases are coming up. They don’t understand the technicalities. We have all approvals in place. We just need to pay money for additional FAR (floor area ration),” Supertech chairman and managing director R K Arora told the Business Standard.

According to people close to the development, buyers often throng the office of Supertech on weekends for various issues ranging from delay in possession to registry of their apartments.

Arora says the company is not hard-pressed for funds and is in discussions with various banks to raise money for the projects.

The real estate market is in a slowdown phase where developers are struggling with low sales and high inventory.

Currently, the realty sector is devoid of any regulator.

With the passage of the Real Estate Regulatory Bill, things are expected to be streamlined.

Arora says the Real Estate Bill will definitely be a game changer for the sector. “It will remove fly-by-night developers. And, trust and confidence among buyers will be back once this is implemented.” Sometimes, delay in projects happen due to external factors beyond the developers’ control, he said. “We will give possession of about 12,000 units this year; we gave 16,000 units last year.”