'Housing projects get delayed due to fund diversion by firms'

Housing projects get delayed due to the "mischievous" practice of builders to invest homebuyers' money in different ventures, the Delhi state consumer commission has said while asking real estate major Parsvnath Developers to refund Rs 23.24 lakh to a woman.
The Delhi State Consumer Disputes Redressal Commission has directed Parsvnath Developers to refund the amount, saying the firm was guilty of deficient service.
"They (builders) do not spend the money received from the prospective buyers on the very project for which the buyers made the payments.
"Due to sheer greed and dishonesty, builders keep on investing the major part of that money in purchase of lands for other projects. This mischief causes delay in completion of any project," the commission said.

It asked the real estate firm to pay Rs 23,24,256 to central Delhi-resident Anuradha Uppal and noted the flat for which she paid the money was not ready even 10 years after signing of the agreement.
The Commission also said that the grant of compensation at the rate of Rs 5 per square feet per month for the delay is "meaningless".

According to the complaint filed by Uppal, she entered into an agreement with the firm on July 21, 2007 for a flat at its project, named Parsvnath Privilege, in Greater Noida.
It also claimed that the possession of the flat was to be handed over within a period of three years and that she had made payment of Rs 23,24,256.

Meanwhile, the firm claimed that the global economic recession had hit all the economies of the world including Indian economy and especially the real estate sector. They claimed that this had resulted in the delay in completion of the project.