The Hindu Business Line : Project in Chennai: DLF working out a scheme to refund EMD

Chennai, March 4 DLF Home Developers, which is putting up a 3,493 apartment township near Sholinganallur on the Old Mahabalipuram Road, is working out a procedure through which it could return the earnest money deposited by customers, to those who wish to exit the project.

Mr K. K. Raman, Head- Homes, DLF Home, told presspersons on Wednesday the company’s agreement with buyers clearly stated that if any customer wanted to exit the project, the company would forfeit the initial booking amount – between Rs 4 lakh and Rs 5 lakh.

However, in view of the economic slowdown and the difficulties that some customers might face in continuing with the project, DLF Home is working out a plan for refunding even the earnest money. The details are being worked out, but it is essentially a staggered payment.

This offer comes in the wake of protests by some customers who have been saying that the company has delayed the construction of the township. DLF has dropped prices between Rs 300 and Rs 600 per sq. ft. across categories of apartments, but the buyers are demanding steeper cuts.

No delays

Mr J. Subrahmanian, Executive Director, Southern Region, DLF, said though there was a slight delay in getting some approvals, the project was very much within the timeframe envisaged in the construction agreement.

Some customers are also peeved over the fact that DLF registers the property as a whole – land and building – as opposed to the normal practice in Tamil Nadu – which is to register only the undivided land. The DLF practice of registering the whole property results in the customers having to pay a higher stamp duty.

Mr Raman defended the company’s move saying that it was the national best practice. Besides, DLF Home is a joint venture of DLF Ltd (with 51 per cent) and Merrill Lynch. The rules for FDI in real estate do not permit a company with foreign investment to sell land. As such DLF Homes cannot register undivided land, he said.