Australian Money Forum

[RimiJoke]

The unethical and illegal practice of India Real Estate Investment property pre-launches resorted to by rogue developers is assuming alarming proportions with builder-investor-broker nexus out to allure unscrupulous consumers with rosy dreams of making fast buck. A well-known builder that is known more for its interests in non-realty business faces an FIR by Haryana Town & Country Planning Department for allegedly doing illegal pre-launch bookings in Rewari Township falling under NCR. District Town Planning Department of Gurgaon approaches district administration for lodging an FIR against a Delhi builder for indulging in illegal pre-launching of plots through brokers for a colony carved out in the controlled areas of Manesar. Another Delhi-based builder is under the scanner of District Town Planner, Gurgaon, for collecting money for pre-launch of a Golf Homes project.
A little known developer under the pretext of pre-launching a residential project in Indirapuram collects about Rs 3 crore and vanishes overnight leaving seven dozen retail investors high and dry.A leading Delhi-based real estate developer that claims to have pan-India operations is rapped by Haryana government’s Town & Country Planning Department for making a false claim through an advertisement about setting up a housing project near Chandigarh. Following this, a broker through newspaper ads solicited pre-launch bookings in this project for which no permission or license was reportedly granted to the company by the authorities.
Few months back, Jaipur Development Authority issued a caution notice in city’s newspapers warning people against investing in few residential projects of well-known Delhi developers in the city who were allegedly engaged in bookings for these projects.
These are just some of the representative cases of pitfalls of pre-launch properties – a mere tip of the iceberg of such illegal transactions that could well ruin the rosy dreams of retail investors lured by the builder- investor- broker nexus to make fast buck. Now look at the other side of the story where many property buyers have burnt their fingers in their greed to book huge profits on their investments in a short period.