CREDAI in association with TREDA, TBF and TDA urges people to purchase RERA Approved projects only

Hyderabad:   The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad and Telangana in association with Telangana Real Estate Developers’ Association (TREDA), Telangana Builders Federation (TBF) and Telangana Developers Association (TDA) launched an initiative to caution people to purchase only TS-RERA registered properties. The objective of the ‘Be Safe, Be Sure’ campaign is to educate the people about the risks of purchasing unapproved, UDS properties and pre-sales, pre-lunch properties without required approvals from HMDA/GHMC and RERA. The campaign was launched by CREDAI senior leadership team consisting of Shri P. Rama Krishna Rao, President, CREDAI Hyderabad, Shri. V. Rajashekar Reddy, General Secretary, CREDAI Hyderabad, Shri. Ch. Ramchandra Reddy, Chairman, CREDAI Telangana, Sri D. Murali Krishna Reddy, President, CREDAI Telangana along with Shri. R Chalapathi Rao, President, TREDA, Shri B Sunil Chandra Reddy, Secretary General, TREDA, Shri. C Prabhakar Rao President, Telangana Builders Federation (TBF), Shri. G V Rao, President-Telangana Developers Association (TDA), and other representatives from CREDAI, TREDA, TDA, TBF, prominent developers, stakeholders and industry members.

All the prominent real estate bodies have come together to launch the campaign against unapproved, UDS, Pre launch and Pre-Sale Properties to educate the gullible customers about the risks for such purchase and populate the benefits of purchasing RERA Approved projects. The associations also aim to reach-out to the state government to initiate appropriate punitive action against unscrupulous operators deceiving people through UDS, or pre-launch sales of the property.

According to Mr P. Rama Krishna Rao, President, CREDAI Hyderabad, “The Telangana government has advised people not to buy Presale/Pre launch private real estate companies, as it may lead to litigation in future which are not registered with the Telangana Real Estate Regulatory Authority (RERA). It has been noticed that some Real Estate operators and others without any experience in the business offering attractive schemes in the guise of undivided share of land prelsale / prelaunch in the projects before pre-requisite approvals from Hmda/Ghmc and Registration with TS-RERA sell UDS property at nominal and discounted price to lure innocent home-buyers, investors. The cost at which they are selling the properties is not sufficient to cover the cost of construction and in such an event the projects will never be successfully completed..In most of the cases the amounts thus collected are diverted for other purposes without utilizing for the respective projects. Sometimes the projects do not get launched or get delayed indefinitely due to many legal and statutory issues, putting the purchaser at a huge risk of loss of hard-earned money. Do you want to take this risk? Will the government allow such unscrupulous people operate in the the state.

He further added, “If the project is registered with TS-RERA, it guarantees that all approvals for the project would be in place, an escrow account created to deposit the funds for the project – preventing diversion of funds and thus ensuring execution and delivery. As a purchaser, would you not like that your hard-earned money, once invested should make sure the project is delivered with no risk of default or cheating? We urge you to only purchase RERA approved projects and BE SURE, BE SAFE.”

“We appeal to the Govt. to take cognisance of the extremely unhealthy and high risk illegal practices in the Real Estate sector and strengthen the RERA Authority to curb these practices by initiating stringent punishment against the perpetrators of the crime to safe guard the hard earned money of investing public and protect the reputation of “Brand Hyderabad “ which is built by the Govt. with great effort and commitment.”

Adding to this Shri Ch. Ramchandra Reddy, Chairman, CREDAI Telangana, said, “The real estate market of Hyderabad and the Telangana state continued to be resilient and robust post the COVID waves unlike other cities in India due to our proactive state government enforcing good policies. Taking advantage of this situation, some projects are coming up with Pre-Sales, Pre-Launches without adequate permissions like building permission & RERA. Developers should not sell plots/flats to prospective purchasers without RERA registration, purchases made in projects without RERA registration are risky for the buyer. RERA ensures that builders are accountable for the delivery and timelines for the projects. They maintain the transparency in all transactions and provide regular updates on the progress of the project. This ensures safety for the home buyer. RERA enforcement initially commenced because of irregularities done by a few builders in some cities. New regulations are needed to control the pre-launch/ UDS/ soft launches in our state and to safeguard the buyers. Purchasers should understand their legal rights and invest in only RERA registered projects.”

According to Shri D. Murali Krishna Reddy, President, CREDAI Telangana,” We caution the prospective buyers for flats bought under pre-launches or as part of the undivided share (UDS), as both of these schemes announced by some developers do not satisfy the RERA rules. As per RERA rules, only those projects that have got the RERA approval should be advertised and sold. In the event of developers failing on their promises, little can be done to protect buyers’ rights. RERA steps in to protect the buyers’ interest, only for approved projects. Here, the buyers got into an agreement before the RERA approvals so they are not protected by provisions of RERA. So why risk your hard-earned money on UDS or pre-launches Be safe, Be Sure with RERA-approved property directly from the builder or RERA approved agents.”

Mr. R Chalapathi Rao, President, TREDA added “Telangana’s real estate sector is at an inflection point with the new policies, emerging trends and various initiatives in the sector are paving the way towards sustainable growth of the industry. With the introduction of pioneering and bold platforms such as Dharani and TS-bPASS, there will be significant ease in doing business propelling the sector into exponential growth. The Government has played a pivotal role with the adopted reforms, policy frameworks, and investments in physical infrastructure development. We are hopeful that with the stability of the Government and its proactive policies, infrastructure push, the trend will continue going forward. However, we seek the government to review GO 50 and go back to GO 168 to control the density in core areas and to balance land prices. We also urge the home-buyers to make the most of the buoyant real estate sector in the city but only purchase RERA-approved projects to stay safe.”

Shri C Prabhakar Rao, President, Telangana Builders Federation, added “Telangana is traditionally an end-user driven market and is witnessing a steady growth both in terms of absorption and value. Over the past decade, the Telangana real sector has seen a spurt in demand for Housing & Commercial spaces. However, some unethical people are taking advantage of this demand and bypassing the procedure to sell UDS plots and illegal layouts on the promise of providing flats/commercial space in lieu of the present investment post approvals. This exposes the purchaser of the project of the UDS to a builder’s performance risk. If the builder fails to complete the project, the purchaser is left helpless as he cannot transfer the UDS, or apartment or commercial space to any third party. Apart from this the purchaser of UDS is deemed to be a ‘promoter’ of the project under TS-RERA and is liable for the execution of the project to other buyers. This makes the purchaser, liable for the financial risks and liabilities for default, laid down by the act. Why do you want to take this risk? Be safe, Be Sure! purchase only RERA approved projects.”

Shri GV Rao, President, Telangana Developers Association states that to make Hyderabad a Great Global City we need to adhere to urban development regulations and laws in toto. And to make this happen we need to utilise the advantages of the environmental assets like GO 111 area and the jungles and natural open spaces in the suburban areas of Hyderabad.

Anyone violating those rules and sensitive zones will have to be dealt with sternly and seen as encroachers and not as developers.

The way the city is growing these environmental protection becomes critical so that the city is protected from global warming.

There is going to be massive construction activity with high density and to accommodate high migration but we need to avoid it becoming a concrete jungle like other cities. Therefore the focus on preserving environmentally senstitive areas.

We welcome the statement of the Honorable Chief Minister to regulate the GO 111 Area. Till that regulation is developed it needs to be protected strictly.

Adding to this Shri V. Rajashekar Reddy, General Secretary, CREDAI Hyderabad said “Be Safe, Be Sure is a combined initiative by the main real estate bodies CREDAI Hyderabad & Telangana, TREDA, TBF and TDA to inform the purchasers about the risks and liabilities associated with the purchase of UDS, pre-sale, pre-launched projects before the required permissions from HMDA/GHMC and RERA.

We hope, that through this initiative we are able to safeguard the buyers from the purchase of un-approved UDS, or pre-sale, pre-launch apartment or commercial space. The purchasers should play safe, purchase RERA-approved projects only to avoid speculative and unsafe purchase.”