Real Estate

Home buyers of Emaar MGF protest against delay

Our Bureau New Delhi | Updated on November 25, 2017 Published on July 25, 2014

After a unique protest by Unitech’s home buyers, now Emaar MGF’s Palm Drive project in Gurgaon is seeing disgruntled buyers demonstrating against delayed delivery.

The Emaar buyers are now planning to approach the Competition Commission of India (CCI).

Sanjay Bhasin, representative of the buyers’ association, told Business Line, “We are planning to approach CCI, despite being discouraged because the company previously had won another case where CCI had ruled that Emaar MGF was too small a company to monopolise.”

Bhasin added that each buyer has paid around ₹ 1 crore to the developer. The occupation certificate has been delayed for over three years, he added.

However, Emaar MGF, in a statement, said, “Occupation Certificate has already been applied for and handover will start as soon. In anticipation of obtaining OC for some of the towers shortly, customer inspections have started at site. The completion and possession of the project will happen in phases, starting from this year.”

“Compensation for delay, if any, is covered in the buyer’s agreement and the company will adhere to the terms and conditions contained therein,” the statement said.

The buyers’ association, however, claims that the compensation clause for delay is one-sided as compensation is Rs 5 per sq ft which is 1 per cent per annum, while Emaar MGF has penalised the buyers at 15-24 per cent per annum for any delay in payment.

The project was launched in end 2007 and was scheduled to be delivered by December 2010, Palm Hills, Palm Terrace and Palm Drive in total have over 1,300 houses across 13 towers.

The company added, “We wish to state that the structural work and other major works such as E&M services have almost been completed. The remaining finishing works are in advanced stages of completion and work is in full swing. Efforts are being made to deliver the entire project with high quality standards.”

Bhasin retorted to this and said, “Out of 13, there are 4 towers in which only the civil structure exists and when we asked the company, it said those houses will be delivered by October. How can the entire construction at those 4 towers be competed in just 2-3 months?”

Emaar MGF Land Ltd is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Ltd of India. The company commenced operations in India in February 2005 and is into real estate development across residential, commercial, retail and hospitality sectors.

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Published on July 25, 2014
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