Urgent need for a regulatory body to monitor builders

[RajaRC]

Urgent need for a regulatory body to monitor builders
Yogesh Kumar, TNN, Oct 4, 2010, 01.37am IST

http://timesofindia.indiatimes.com/city/gurgaon/Urgent-need-for-a-regulatory-body-to-monitor-builders/articleshow/6680301.cms

Tags:dlf|competition commission of india | belaire housing projects

GURGAON: To highlight the shortcomings in DLFs contracts, the flat
owners association of Park Place and Belaire has submitted documents
of international contractual regulations followed by builders in UK
and US to the Competition Commission of India (CCI). The association
is fighting a legal battle against DLF over some clauses in the
contracts that give builders a dominant position and put the flat
buyers on a weak footing. In the last hearing, the CCI had ordered DLF
not to cancel allotment of flats in two upcoming housing projects
located in Gurgaon.

The CCI had asked Director General (Investigation) to probe the
charges levelled by the association. The DG has sought documents that
explain international best practices followed by builder firms. The
documents have been submitted, said Harsh Sehgal, president of the
flat owners association of Park Place and Belaire housing projects.

The two projects have 2,200 luxury flats, priced between Rs 1.5 crore
and Rs 3 crore, making the apartments worth over Rs 4,500 crore. Flat
owners had moved CCI after DLF cancelled allotments of 30 flat owners.

It is unfortunate that here we dont have any regulatory body or
written rules to govern the overall real estate industry. The builder
buys land, gets clearance for building plan and then he is on his own.
There are no rules to govern him in case he cheats or delays the
housing projects, said Amit Jain, a flat owner.

He said the association has submitted copies of pre construction
agreements which are used in Florida, US. All building firms in US
have to follow the clauses of pre-construction agreements prescribed
by US state authorities. There is zero tolerance on any violation
committed by builders. But in India we dont have anything like that,
said Jain. The association has also submitted contractual documents
used in UK, Scotland, Australia and Dubai.


Read more: Urgent need for a regulatory body to monitor builders - The
Times of India
http://timesofindia.indiatimes.com/city/gurgaon/Urgent-need-for-a-regulatory-body-to-monitor-builders/articleshow/6680301.cms#ixzz11MPiHfRb