Buyers beware of booking flats in pre-launched projects at Greater Noida West

A troubling trend has emerged in the real estate sector of Greater Noida West in Uttar Pradesh under the nose of UP RERA authority, where builders accept bookings in pre-launch projects without a clear idea to buyers as to which flat units they are purchasing and whether they will get it or not. These bookings, which are made in violation of the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) guidelines, are raising concerns about transparency and fairness in the property market. The question is what is UPRERA doing?

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Pre-Launch Bookings: A Risky Gamble

Pre-launch real estate projects are those that builders market before obtaining the necessary approvals, including a RERA registration number. In recent months, there has been a surge in bookings for such projects, with buyers rushing to secure units based on the assumption of price appreciation. However, in many cases, buyers are issuing cheques to builders without knowing the exact unit they are booking, leading to significant risks and potential financial losses.

According to UPRERA guidelines, pre-launch bookings are not allowed. The regulation requires that builders obtain all necessary approvals, including a RERA registration number, before selling any units in a project. This rule is designed to protect buyers from fraud and ensure that they are fully informed about the project they are investing in. Despite these regulations, many builders are circumventing the rules, enticing buyers with the promise of early bird discounts and anticipated future gains.

Cheques Taken Against Undefined Units

One of the most concerning aspects of this practice is that builders are taking cheques from buyers for units that have not been clearly defined. Buyers are often not provided with specific details about the unit they are purchasing, such as the floor plan, facing, or exact location within the project. This lack of clarity leaves buyers vulnerable, as they are essentially placing a bet on a property without knowing the specifics of what they are purchasing.

Some Greater Noida West developers are exploiting the high demand and expectations of price appreciation in the real estate market. By accepting cheques for more units than are actually available, they create a false sense of scarcity, prompting more buyers to make hasty decisions. Once the project is officially launched and receives a RERA registration number, the builders then selectively cancel some of the units for which they have taken cheques, often citing overbooking or non-availability as reasons.

Buyers Left in the Lurch in Greater Noida West

The cancellation of units post-launch leaves many buyers in a precarious situation. Despite having paid substantial amounts upfront, often amounting to several lakhs, these buyers find their bookings cancelled with little recourse. In some cases, they are offered alternative units at higher prices or are left waiting indefinitely for a refund. This practice not only contravenes the spirit of the UPRERA regulations but also erodes trust in the real estate market.

A buyer who recently faced such a situation expressed frustration, saying, “I booked a flat in good faith, believing that I was securing an early investment opportunity. However, after the project received its RERA registration, I was informed that my booking had been cancelled. I was given the option to choose another unit at a much higher price or wait for a refund. It feels like I was duped.”

Calls for Greater Enforcement and Awareness

Real estate experts and consumer rights advocates are calling for stricter enforcement of UPRERA guidelines to protect buyers from such practices. They urge potential buyers to exercise caution and conduct thorough due diligence before making any financial commitments. Buyers are advised to ensure that the project has received a RERA registration number and to avoid making payments for undefined units in pre-launch projects.

“Buyers need to be aware of their rights under RERA,” said Daniel David, a legal expert specialising in real estate. “Pre-launch bookings are illegal, and any builder engaging in such practices is violating the law. Buyers should report such cases to the authorities and seek redressal for any financial loss incurred.”

The real estate market in Noida and Greater Noida West have long been plagued by issues of transparency and accountability. As more buyers fall prey to dubious practices, it becomes increasingly important for regulatory bodies like UPRERA to step up enforcement and ensure that builders adhere to the rules. Only through greater vigilance and stricter regulations can the interests of homebuyers be safeguarded, and trust in the property market be restored.