After paying token money, buyers in quandary

[Harpreet Singh Guller]

After paying token money, buyers in quandary
Ayaskant Das, TNN | Nov 8, 2011, 01.51AM IST



NOIDA: Even though homebuyers of Noida Extension have been told by
developers that they will not have to shell out any additional money
for their housing units, a section of investors who have just paid the
token money and not signed their agreements to book their flats in
still in a quandary. Such buyers have received letters from their
developers to pay the booking amount within a fortnight and sign
agreements, or else take refunds.

Builders, on the other hand, have said that they are yet to decide on
whether or not to increase total cost for these buyers only after
Greater Noida Authority tells them the percentage of compensation load
that will have to be borne by them.

"The reason buyers who had paid just the token money did not follow it
up to pay booking amounts and sign agreements is because the matter
was subjudice before the Allahabad High Court," said Ravi Garg, a
member of the Panchsheel Homebuyers Group. Builders have now sent
letters to the buyers asking them to book their flats within a
fortnight or else take refunds. "If we fail to book our houses within
a fortnight, we would have to book the same flats afresh at new rates.
Builders should show consideration and not force such buyers to sign
agreements. They should defer signing the agreements due to the legal
crisis," said Garg.

However, builders maintain that they have taken no decision on
increasing costs for such buyers. "For the last five months, we had
not asked them to sign agreements. We have asked them now to either
confirm their bookings or take refunds," said director of Panchsheel
Buildtech, Anuj Choudhary. "We have not asked these buyers to pay more
for the flats for which they have paid the token amounts. We are yet
to arrive at a decision on cost escalation of new flats," said
Choudhary.

Amrapali Group, another prominent builder, has also begun issuing such
letters. "We are not doing it to extract more money from buyers, but
to find out the genuine investors," said CMD of Amrapali Group, Anil
Sharma. "If we extend the privilege of protecting people who have just
deposited token money and not entered into agreements, it might
encourage a black economy in the housing market in Noida Extension.
With the assurance that there would be no cost escalation for them and
the lack of any binding agreement, unscrupulous elements might engage
in free buying and selling of houses," added Sharma.

Escalation in costs of new housing units would depend directly on the
amount of the financial burden that builders would have to share with
the Greater Noida Authority in doling out extra compensation to
farmers. "We are not issuing any demand letters to homebuyers for the
time being. We are waiting for a clear picture to emerge on the
percentage of the total financial burden that builders have to share
with the Authority," said CMD of Supertech Group, RK Arora. "Though we
have begun paying money to the cash-strapped Greater Noida Authority
to help them dole out compensation, a final calculation of sharing of
burdens will take some time to be worked out," Arora added.

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