Chennai: Amidst rising fears that thousands of customers who had raised bank loans to purchase flats would be left in the lurch in view of the National Green Tribunal (NGT) order, the Confederation of Real Estate Developers Association of India (Credai) has said there is no need to panic and their customers’ interests will be safeguarded. However, consumer groups and real estate agents association have blamed the builders for this volatile situation.
Mr Rajesh N. Dave, immediate president, Chennai Real Estate Agents Association and CEO N.R. Daveson, Space Management, said the fault lay with the builders. They should have got the clearance before hand rather than putting customers in deep trouble. “There is huge money involved. Most of these projects are multistoried apartments with a minimum of 200 to 250 apartment units. Big money is involved here and is not a good sign for market”, he said.
Ms Nirmala Desikan, chairman and managing trustee, Consumer Association of India, said the customers also should be more cautious and check whether the builder has complied with all norms. “Consumers just blindly sign the bank documents while taking loans and the banks also don’t securitise the property documents properly”. Sarita Hunt, Managing Director (Chennai), Jones Lang LaSalle India, said: “It is a castle effect, and everything will impact the consumer. People who bought a project are stuck, EMI gets mounted up and the timeline is not kept. It will also affect developers who would not be able to sell the property. As of now, there are about 50,000 unsold units in Chennai”.
The spokesperson of a leading bank said their sector would equally be hit. The builders won’t pay the loans if they can’t sell the property. “We hope there will be some relief and a way out”. Mr Ajit Kumar Chordia, president of Chennai chapter of Credai, said the builders are to meet on Friday to decide the future course of action.
