Next instalment not paid, so Noida builders begin cancelling flats

Buyers of flats in Noida Extension, who have been denied bank loans in the absence of clearances from the National Capital Region Planning Board for the housing projects, are now being issued cancellation notices by the builders for non payment of installments. The demand letters were issued by the builders after October 25. According to the cancellation letter issued by Palm Olympia developers and Valencia homes, buyers who do not pay the additional payments within the next two months will have their allotment cancelled, and will receive reimbursements of the amounts paid earlier. Ranjit Singh, who bought a flat with Palm Olympia, said, “This is ridiculous and completely against the interests of the buyers. We had protested when we received the demand letter, because of the situation with the banks. They have refused to give us loans because the projects still have not received clearance. I have to give a Rs 3 lakh additional installment. Where will I get the money? I will go to the site tomorrow to see what can be done.” Confederation of Real Estate Developers' Associations of India (CREDAI) , a body of private real estate developers, said while most builders had refrained from demanding money, action of all developers could not be controlled. “When we received complaints of some real estate developers sending out demand letters in the final months of 2011, we asked them to refrain from doing so. While it is inevitable that buyers will have to (bear) increased prices, because of the Allahabad High Court judgment, it should still be done at a later date,” said a CREDAI board member. source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=17953&cat_id=1