Consumer Grievances in Real Estate - Inputs on Root Causes
Dear Friends,
Based on your inputs, here is a summary of the Consumer Grievance issues in the Real Estate industry.
1. Low quality materials used for construction
2. Non-compliance of building laws
3. Solar Panels, Fire Systems, water conservation systems are often setup only for completion certificates and they are non-operational from there onwards. The review mechanism either do not exist or often corrupt systems
4. No regulation for pricing – price decided by word of mouth
5.Black money being used as cash for purchases
6.No single touch point to verify the authenticity of the project one is going to invest in
7.A lot of projects falls prey to some or the other fraud
8.Difference between Built Up, Super Built up / Saleable area
9.Builders Agreement is generally one sided in their favour
10.Builders appreciate the price drastically by citing the examples of proposed major infrastructure projects around the apartment complexes or residential layouts
11.Fly by night developers are fleecing the unsuspecting public. For each project they create a new company and afterwards go bankrupt
12.Properties handed over to customers without proper certification
13. Major delay in possession
14.Securing a bank loan is a tough task
15. Corruption in registrar’s office
16. Stamp duty is pretty hefty
Kindly add any more issues that may be there. Otherwise, let us work together on outlining the root causes for these issues. Once we have done that we will create a separate post to find Solutions which can be submitted to the various consumer and real estate regulatory bodies for action.
I look forward to your inputs!
Rajendra Pratap Gupta more
Based on your inputs, here is a summary of the Consumer Grievance issues in the Real Estate industry.
1. Low quality materials used for construction
2. Non-compliance of building laws
3. Solar Panels, Fire Systems, water conservation systems are often setup only for completion certificates and they are non-operational from there onwards. The review mechanism either do not exist or often corrupt systems
4. No regulation for pricing – price decided by word of mouth
5.Black money being used as cash for purchases
6.No single touch point to verify the authenticity of the project one is going to invest in
7.A lot of projects falls prey to some or the other fraud
8.Difference between Built Up, Super Built up / Saleable area
9.Builders Agreement is generally one sided in their favour
10.Builders appreciate the price drastically by citing the examples of proposed major infrastructure projects around the apartment complexes or residential layouts
11.Fly by night developers are fleecing the unsuspecting public. For each project they create a new company and afterwards go bankrupt
12.Properties handed over to customers without proper certification
13. Major delay in possession
14.Securing a bank loan is a tough task
15. Corruption in registrar’s office
16. Stamp duty is pretty hefty
Kindly add any more issues that may be there. Otherwise, let us work together on outlining the root causes for these issues. Once we have done that we will create a separate post to find Solutions which can be submitted to the various consumer and real estate regulatory bodies for action.
I look forward to your inputs!
Rajendra Pratap Gupta more
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sir                               DUBIOUS BUSINESS TACTICS It is good we are receiving lot of emails telling consumer grievances which is helping us and guiding us to purchase good company products.In this regard I am also having a complaint against TIMES OF INDIA which can be circulated to all. I am a retired banker and a customer for HINDU magazine for 40 years and more. One-day during oct 14 when i was reading my HINDU paper after my morning coffee my paperwala approached me and told me that Sir why don't you change the morning paper to TIMES OF INDIA which was cheaper than HINDU and also they were giving TRAVEL BAGS for those who were subscribing for one year. I replied him that I would think it over and tell him. As I am a fan of Mr.Arunab gosamy I am thinking of switching over to TIMES OF INDIA. After some days my paperwala with one Mr.G.Srinivasan RRE of TIMES OF INDIA approached me for subscription to their paper and I also accepted the same and subscribed. He has given me an order No IAA 000768 and informed me that I will get a travel bag during Jan15.I was happily agreed and kept the order. Jan 15 and Feb 15 have come and gone but i am not able to receive the bag from TIMES OFINDIA inspite of my repeated phone calls. I also visited their COIMBATORE office to know when i will get my travel bag but simply not allowed by the security staf f.Hence I have mailed a letter to their CHENNAI office ten days ago for which I am yet to be replied. In their TV CHNNEL they are blaming the functioning of Govt offices and their staffand also every other person but they are not having the time to reply my mail and they are still not able to reply me when i will be getting my bag in spite of my repeated queries. Hence i request them to clean up their backyard before criticizing others. On Tuesday, 19 August 2014 5:00 AM, Rajendra Pratap Gupta wrote: more
Mar 24
Respected Sir, We are in the footprints of US and Europe in the real estate business. It was the English and French who invaded India in search of Wealth and who literally drained our resources. This real estate and paper money were forms created within these respective countries to drain the resources of the haves by the havenots rather by the intelligent haves and havenots. So this disease has now spread to India and has caught up of late. So the haves want to become more haves and deprive the havenots with their existing ones also. So the gap widens which is immeasurable. To put a stop to these only will escalate the progress in real terms of economy which was overlooked during Vajpayee Ji Govt which spiralled to the Congress manipulations. Unless a Committee is formed and analysed in Scientific and long term way to arrest the upsurge and control over these activities by usurping the income generated from such activity to the kitty of Govt.. Until such time the control or the real estate business is a mirage for Govt. income and individuals join to form partnership or association or companies for short term with few millions pumped in but harvesting crores and crores and having a stake in the economy of the country at the cost of the sweat of the poor farmer who is ill fed and ill nourished and his multiplying potential is controlled by nature and Government which has no control over the real estate firms/companies/associations/partners who go scot free after reaping their harvest leaving the constructed area to the occupants as free birds and the farmers are caged by the rods of Govt. guidelines in the name of subsidies and power tariff and depleting agrarian work force. Hence unless Real Estate is handled in proper sense by Govt. there will always a drift to the haves by the Govt. and leaving aside the havenots which will have a telling affect on the future election scenarios. M Srii Narayanan more
Aug 22
Lots of good points here. Here are a few thoughts to supplement the same. i.e. the reasons why - no accountability on the developers(i.e. no governance -oversight by the regulators), no accountability of town planners and district admistrations are the root causes why all this continues...and obviously blatant corruption is at the root of all of this, apart from archaic systems & processes ? only way to address this is for the regulators/government departments to improve processes, service delivery measures & technology and be held accountable for results and not pushing/sitting on files/paper. Systemic improvements in people(i.e. performance management), processes and technology are necessary. Here's a video that may help articulate one good management intervention that can help - watch this video and do kindly consider letting me have your comments/feedback http://youtu.be/SVbPaL-V2FY more
Aug 21
