Updates on conflicts between builders and apartment owners in Kochi

Q: Hi there, Hi, Rajesh here. Is there any legitimate information about the legal issues that are going on between the Builders and apartment owners in Kochi. Can anyone give their opinion about this?

Rajesh Menon, Kochi

18th February 2015

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Replies (9)

Now, one more thing, you know, as the builders do not complete their work on time, the banks with which they have approvals do not allot the loan amount. This is because, the banks allot fund only after the completion of each phase of the project. Such a problem is worst for the NRIs, because most of these flat owners are NRI's and they visit Kerala once only in a year. there is difficulty in monitoring and following the construction process. I also agree that there should be a monitoring authority for this.

Nathan Saldanha, Kochi

3rd March 2015

Comment

Do you knw, the realizing such issue as in Kochi, the Maharashtra enacted the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963. Here, in kochi what is happening is that the builders dont even give compensation saying that the consumers have not paid their dues.

Naresh Valiathan, Kochi

2nd March 2015

Comment

Yeah.. i think this is because there is no independant regulatory authority to take care of these issues. like the case of Chandigarh, where they have the Real Estate Regulatory Authority, in Kochi also, they should constitute one to resolve such matters. The delay in handing over the flats have become a negative trend in real estate now.

Vikesh Vaidyar, Kochi

1st March 2015

Comment

You know one thing...according to the present system, the title of the land will not be transferred to the apartment owners until the builder repays the loan. So, in my opinion what they should do is to keep in the loop about the disbursal of the funds so that the owners can keep track of fund utilization.

Ashwini Eradi, Kochi

27th February 2015

Comment

Yeah..that is true. the owners stand to lose when some builders, mortgage the land and proposed property and also fail to repay the loan amount. Many builders, who start the project with loans from various financial institutions drop the project midway after selling the flats to prospective buyers.

Nathan Saldanha, Kochi

26th February 2015

Comment

The problem is very grave, especially in Kochi.. Many builders are not fulfilling their promises about the timely construction of the apartments and what happens is that the loans that are taken for paying the down payement and the the base fare, the owners have to pay a huge sum of interest to the banks.

Micheal George, Kochi

21st February 2015

Comment

Hey,, I think that the buyers are approaching the consumer redressal forum for complaints against the errant builders who are making much delay in the handing over of the possession of flats. In 2012, there were 63 cases, in 2013, 103 cases and till september 2014 only, the number of cases rose to 91.

Mary Rozario, Kochi

20th February 2015

Comment

Actually, the demand by the Apartment Owners Apex Association (AOAA) is like this...they have decided to write to the RBI and the Indian Banks Association, asking them for ensuring that the loans are granted in tranches based on the progress of the construction...

Arjun Sridhar, Kochi

19th February 2015

Comment

Hello Rajesh...The conflict between the apartment owners and the builders have become very bitter, recently. The builders are not keen to fulfil their promises. I think, now the owners are demanding a stricter scrutiny by the financial institution before disbursing loans for housing projects?

Ganesh Nambiar, Kochi

18th February 2015

Comment

Dear Ganesh..Thanks for the feedback...how are you? I just wanted to ask you one more question. How will the scrutiny by the financial institutions for disbursing the loans help in any way?

Rajesh Menon, Kochi

18th February 2015