Unitech buyers to approach watchdog

Tired of delays in their homes being completed, buyers of Unitech’s Noida project, Unihomes, are gearing up to approach the Competition Commission of India (CCI).

“We are in the process of registering our society and will approach the CCI soon,” said an aggrieved buyer. A group of buyers was protesting at the venue of the annual real estate conclave of industry body Naredco here on Friday.

Unihomes was launched in June 2009 and possession was promised in two years.

Chandresh Kumar, President, Unitech Unihomes Flat Welfare Association, told BusinessLine : “The work started on time. Payments to Unitech were construction-linked and we paid almost 95 per cent of the amount but possession was not given. According to the company’s revised timeline, all houses will be delivered by 2017.”

Penalty clause The project has over 2,100 houses spread across six blocks with multiple towers each.

On the delay, a Unitech spokesperson told BusinessLine : “We are in regular touch with our customers and keep updating them on the project’s progress. There have been some delays due to certain regulatory issues being faced by most of the developers in Noida and are beyond the developer’s control.”

“This may be causing anxiety to some customers but we can assure them that they are well protected with the clause under which penalty will be paid to the home-buyers for any delay, as per their allotment letter,” the statement added.

However, Kumar said that the penalty clause (at ₹5 per sq ft) is not being paid and will be adjusted in the last payment. Also, other developers, such as Amrapali and Prateek Group, who started projects in the same region much later, have already given possession to buyers.

Double whammy In what can be termed a double-whammy, buyers are paying rent for current accommodation, apart from EMIs on their home loans. They are not entitled to income-tax exemption as they do not have possession yet. “To make matters worse, we cannot find suitable buyers in the market, as it is a stalled project,” the buyer added.

“About 20-25 buyers in the project have filed complaints in the consumer court against Unitech. In April, the consumer court had issued a notice to the company, the next hearing for which is in December,” a buyer, who did not wish to be quoted, added.

This is not the first time Unitech has courted controversy. In July this year, buyers of Unitech’s The Residences’ project in Gurgaon resorted to a unique protest, by working as labourers at the project site. Last year, buyers of the Uniworld Garden II project in Sohna Road had come out on the streets, protesting delays in delivery.

The shares of the company ended 0.88 per cent higher at ₹22.95 at the BSE on Friday.

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