Buyers caught between banks and builders' demands

NOIDA: Homebuyers in Noida Extension are in a quandary over their housing loans and the next set of installments that they have to pay the builders. After the Allahabad High Court verdict, while builders have begun dispatching demand letters, homebuyers have no word yet from the banks as to when fresh disbursements would commence for paying their installments.
"Banks are still mum on disbursement of funds so that construction activity of the residential projects can commence in Noida Extension," said Devender Kumar, a member of Noida Extension Flat Owners and Members Association ( NEFOMA). "Banks should immediately release the installments to the builders so that construction can begin in the stalled projects," added Kumar.
While buyers in some projects of Noida Extension have begun receiving installment demand letters, some builders have asked them to pay interest on pending dues. "The builder has sent a letter asking me to deposit Rs 57,000 as interest," said Sandeep Kumar, a homebuyer from Palm Olympia project in Noida Extension. "The builder should understand that we are in no position to pay till banks start disbursal of loans," added Kumar.
In yet another residential project, Earth Towne, buyers have been sent 'cancellation letters' by the builder for failing to pay installments in the last few months. "Our group of 12 people, which had booked flats in this project, was served the letters a few days back," said Ajit Singh, who has booked a flat in Earth Towne.
"We conveyed to their officials that payments should have been put on hold since the final clearance on all projects is yet to come and banks have stopped funding. However, they have said that we need to pay up irrespective of any such problem," added Singh.
Palm Olympia has said that their demands to buyers to clear default installments are strictly in accordance with the contracts signed between them. "However, if CREDAI writes to us, we are willing to wait till all matters are settled," said Neelesh Sharma, vice-president (marketing) of Palm Olympia. When contacted, Earth Towne Infrastructure officials did not respond.
Banks, however, have decided not to release funds, at least till the Greater Noida Authority gets its Master Plan 2021 approved from the NCR Planning Board. "There's no question of disbursing further loans until the projects have been cleared by the authorities," said the spokesperson of a leading bank. "It is not possible for banks to release loans on projects that are subject to approval of a planning board," he added.
CREDAI has, however, now stepped in to bring about some order. It will write to all developers of Noida Extension area requesting them to put on hold all demand letters and notices till some clarity is achieved on the actual situation in the area. "A meeting with the Authority can be scheduled only after Diwali following which we will get to know whether construction work can resume and also sort out issues like waiving off interest on installments," said Anil Sharma, president CREDAI (NCR) and CMD of Amrapali Group. "We request all developers to refrain from sending payment notices to the buyers," he said.

source : TOI


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