Investors on flats cry foul
Real estate sector crimes on the rise in Vizag
By : DC Correspondent
Update: 2014-09-28 03:46 GMT
Visakhapatnam: The crime related to real estate sector in Vizag seems to be rising in various modes. Now, some investors who had booked flats in various projects and deposited around 15 to 20 per cent of the cost upfront, are approaching the cops and demanding investigation because the developers are allegedly selling the project lands to others. With the division of state, the real estate business in Vizag and surrounding areas is at its peak as the prices of land and flats are touching a high.
The flip-side of this is that the number of crimes in the real estate sector are also on rise.Deputy commissioner of police (Law and Order) M. Srinivasulu said they had received some complaints that some investors had signed informal agreement with the developers for advance booking of a flat paying around 20 per cent of the cost of the flat. But, the developers are cheating the investors by selling the same flat to multiple customers or by selling the land meant for the project and ventures.
In some cases, the investors had signed proper agreement with the builders. However, the developers are yet to take up works to complete the apartment even after collecting 30 per cent of the cost of upfront from the investors, the police officer said.
P. Praveen Kumar, one of the investors in a project, said that he had paid Rs 5 lakh for advance booking. “I have no builder-buyer agreement, no relevant documents and I have tried to talk to the company but failed to get any satisfactory reply and I approached the police,” he added. Police sources said that majority of the victims had paid money for flats in various projects coming up on the city outskirts.
“Our Document Fraud Investigation Teams have been investigating cases which have a criminal angle while some cases which fall under the civil purview are being referred to District Legal Cell Authority,” the DCP said. “We have been appealing to the investors to think twice before investing for flats, but many ignored it and landed in trouble,” said some police officers.