Vikas Malpani, Co-founder & VP (Communities) at CommonFloor.com was recently quoted as part of a feature "Beware the Traps, some of the common ways in which real estate developers try to cheat property buyers" in one of India's leading business magazines "Business Today".
The article talks about how the Indian Real Estate industry lacks transparency and how buyers often find themselves locked into properties which have serious construction flaws or end up paying for things they neither wanted nor need.
Expressing his views on this subject Vikas Malpani was quoted saying “In Most Cases, the building is not built according to the plan submitted. The violations range from the height of the building to margins. Some builders think even if they violate rules, their buildings will be regularised later by the concerned urban local body”.
When asked about recreational clubs and other amenities such as gyms; which seems to another issue as the buyers have no option but to pay for them; Vikas added “Builders retain rights over such facilities in the builder-buyer agreement and profit from them. In such an arrangement, residents end up paying for maintenance while the builder enjoys ownership rights”. Also, talking about the importance of Clearance Certificate & Occupancy Certificate, Malpani was quoted saying “Without it, residents may not be able to get water and sewage connections. The local authorities can also demolish buildings that do not comply with the by-laws”.