Real-estate major DLF's proposed commercial project at New Town, on the outskirts of the city, has hit an air pocket with a substantial number of investors looking for and exit route. About 100 investors, out of a total of 223 who backed the venture, now want a refund due to delay in construction and other alleged irregularities.
In 2008, DLF announced its intention to construct a 3,00,000 sq ft retail-cum-office complex on a three-acre plot in Action Area-I of New Town. The complex is to house retail and food outlets on the first three floors and offices on the remaining floors of the 13-storey complex.
The investors, under the umbrella of the Rajarhat Welfare Association, have approached the district administration and a total of 78 complaints have already been filed. A hearing is expected to take place on Tuesday.
It is the contention of the association that DLF accepted payments before the project being registered under the West Bengal Building (Regulation of Promotion of Construction and Transfer by Promoters) Act, 1993.
“We had put in our money trusting the DLF brand. But hardly any construction has taken place for the project and there are also other irregularities over registration and plan sanctions that have come to light. We would like our money to be returned,” RWA's Rajendra Kapoor said.
The association says that about Rs 100 crore have been collected from the investors but DLF has not undertaken any significant construction work and also not defined a time line for the completion of the project. However, it is understood that many of the investors acceded to requests for payments only on the basis of an application form and without signing the actual agreement with the real estate company.
In a reply to a questionnaire, a DLF spokesperson said, “We have all the approvals in place. The construction on the site is in full swing and we are committed to deliver the project on schedule as promised.”
