A real estate scam that is leaving buyers in the lurch emerges in city
Hyderabad: A real estate scam whereupon buyers are being sold undeveloped plots, which are devoid of the promised amenities like roads, electricity and parks, has come to light. Of the many developers who are into such nefarious ‘deals’ is Suvarnabhoomi Developers, against whom six complaints have been registered with the Real Estate Regulatory Authority (RERA).
Incidentally, RERA-registered developers like Maha Infra and Axis Constructions purchase land, obtain layout approvals from HMDA and sell the undeveloped plots to other developers like Suvarnabhoomi Developers, who sell such plots without taking any responsibility to develop even the basic infrastructure.
Suvarnabhoomi Developers’ agreements with buyers do not mention developing infrastructure. The buyers, unaware of the details, fail to read the agreements before signing them. As a result, they are left waiting for years for the promised development.
In one such case, a plot sold in 2019 has remained undeveloped till date. As a result, the buyer is unable to proceed with construction.
Srinivas Rao, a member of TG RERA, said that many buyers have complained about delays in infrastructure development. Despite myriad complaints, developers like Suvarnabhoomi are continuing to sell plots while leisurely going about layout development.
What is more irksome is that lack of any legal commitment in the agreements makes it difficult for buyers to hold the developers accountable for the defaults.
He said that developers are obligated to develop layouts and deliver plots with all amenities in place before selling them. This is outright violation of RERA norms.
Srinivas Rao advised buyers to carefully review the agreements and ensure that the developers promise to complete the layout within a specific time.
“The agreements must include a clause detailing the timeline for completing infrastructure. Sadly, Suvarnabhoomi’s agreements only mention the sale of the plot, leaving buyers at a legal disadvantage,” he added.