Govt functionaries ask developers to live upto promises

Amid buyer complaints of realtors not delivering housing projects on time, senior government functionaries today asked developers to live up to their promises, and ensure consumers do not suffer endless delays in possession.

"There is a huge responsibility on all of you to be equally responsible to ensure that consumers don't suffer. Consumers have suffered at the hands of many real estate companies across India. They promised houses, and not delivered in time," NITI Aayog Chief Executive Officer Amitabh Kant said addressing a NAREDCO conference.

Asking the industry to work with "self discipline", he said that credibility of the sector will go if consumers suffer at the hands of developers.
 

"I hope that you will discuss that because if the consumers suffer, the credibility of industry goes and nobody will trust the industry in future. That is why, it is important that we live up to our words... We ensure that there is greater level of professionalism," he added.

Echoing the sentiments, Law Minister Ravi Shankar Prasad said given that India's aspirations and expectations are changing, not sticking to delivery timelines will lead to "complications".

"Therefore the most important point I would like to highlight for your consideration is to reclaim the credibility quotient of the segment," Prasad said.

He lauded the role of developers who had done "very well" in meeting the expectation of the consumers, but said that a handful of black sheep bring a bad name to the sector.

"There needs to be an honest introspection," he pointed out.

The comments come at a time when real estate projects are facing construction delays, and dreams of homebuyers to get possession of their new flats has turned into an endless nightmare.

Earlier this week, real estate firm Unitech was directed by the Supreme Court to deposit Rs 15 crore principal amount by September-end to pay back investors who had bought flats in its Gurgaon project, but did not got possession on time.