CREDAI asks builders to honour commitment to buyers

Realtors' apex body CREDAI today asked its member developers to give real time information to the buyers about the ongoing projects which are delayed and honour their commitments in order to prevent consumers from taking legal recourse.
CREDAI's advice to its members came after Unitech case in which a Delhi court on Monday sent Unitech's Chairman, its two Managing Directors and a director to 14-day judicial custody in alleged cheating cases filed by two investors.
Unitech's top executives were granted three days' interim bail on the same day.
"We will tell our members to communicate with buyers and give them the real-time delivery status so that customers are not pushed into a situation that they have to take legal recourse," CREDAI President Getamber Anand said, when asked about the impact of the Unitech case on the industry.

Unitech is not a member of CREDAI, which has about 10,000 members across the country.
Real estate sector is facing a slowdown from last 2-3 years, leading to huge delays of up to 7-8 years in delivery of projects and forcing buyers to protest on street and even go to courts.

Anand said many real estate projects are delayed because of various reasons, including some unexpected ones such as green tribunal orders or litigations on land acquisitions.
"But where delays are because of reasons which are attributable to developers, then they should communicate to the customers. Builders should give a firm date of delivery of the delayed project and honour the commitment. Otherwise, consumers will take legal recourse and the law will take its course," said Anand, also the CMD of realty firm ATS group.

Anand said the developers should focus on execution of ongoing projects and establish an effective communication system with their buyers. He ruled out that Unitech episode would instill fear among developers.
Unitech's top bosses walked out of Tihar Jail yesterday after spending a night in prison despite succeeding to get an interim bail on Monday. They had to spend a night at Tihar Jail as they had failed to get the release warrant on time from the court.