I had booked a flat with omaxe limited for omaxe swarnaprastha floor sonepat, Haryana and paid RS 6 lakhs in Jul 2011. I was informed that buyer builder agreement shall be prepared within 1 month, home loan shall be available within 2 months and possession shall be given in 1 year. Till now, no home loan is available. Approx 80% of the cost as Rs. 22 lakhs are already paid. Date of offer of possession is not clear and seems to be indefinite. Now omaxe ltd is forcing to sign an unfair and one sided buyer builder agreement in which the date of offer of possession is 2 year from the date of signing the agreement, extendable by 6 months and no compensation from builder on delay. All binding terms and conditions are for buyers and all evasion terms and conditions are for builder. It is one sided agreement and omaxe limited in not ready to amend the T&C of agreement. I have read on internet that all the cases lost by customers are due to this unfair buyer builder agreement only. Now omaxe ltd is forcing me that there will be no home loan and no offer of possession if this agreement is not signed. Now i am helpless in front of a large builder as a common people. Being a govt servant, i don't have time to file court cases and attend dates. I am just waiting for real estate bill to be passed by parliament, which shall control nuisances from builders.
I have the following grievances:-
Non Adherence of Timelines - At the time of booking it was informed that project shall be completed within one year. However, considering a reasonable time with extensions, it must have been completed with 2 years during Mar 2013. Date of booking Feb 2011, project commenced – Oct 2011, Buyer Builder Agreement prepared – Jan 2014, Project completion status – Not completed and PDC Known by customers.
Malpractices – Omaxe Ltd and almost all real estate players are involved in malpractice by selling all units of project to their cartels of brokers and indulge in non-consumer friendly practices. In my particular case, when I wanted to buy a floor at Sonepat, I was informed that only BATRA Properties holds all the floors of Swaranprastha Floor project of Omaxe Ltd. This malpractice enables brokers/builder the following non-consumer friendly practices:-
(a) to earn profits of advance booking concessions by brokers only
(b) resale these with profits/premium at increase prices
(c) builder avoids queries from consumers which might be raised at the time of initial bookings.
(d) unfair terms, conditions and agreement are easily forced on consumers at the time of resale.
Wrong Information. During Jun 2011, I purchased a unit No. 1354 in Omaxe Swarnaprasth Floors at Sonepat from Broker M/S Batra Properties. The broker informed me that the project will be completed within one year, Buyer-Builder Agreement will be prepared within one month and thereafter home loan will be available on the said property. The construction commenced during Oct 2011 and buyer-builder agreement was prepared during Jan 2014. In between the builder demanded instalments amounting a total of 13 lakhs without sanction of home loan, which harassed me for managing the amount without home loan.
No PDC. The probable date of completion is not known yet by the customers.
No Home Loans. Even after 3 ½ years of launch, no home loan was available for customers. During Jul 2011, I applied for home loan through LIC HFL. My loan was provisionally sanctioned subject to submission of NOC from Omaxe Ltd. Since then, I sent more than 10 e-mails to Omaxe Ltd, but never got any NOC for home loan. Thereafter, during Dec 2012, I approach HDFC Home Loans and submitted all relevant documents. HDFC Home loans approved my home loan for 20 lakh subject to submission of map of property duly approved by HUDA. I requested Omaxe Ltd through numerous e-mails for the map but all in vain. Now, during May 2012, I was informed by Omaxe Ltd that loan is available from LIC HFL. When I contacted LIC HFL, I was informed that my leftover amount is 5 lakh only, and for this meagre amount home loan is not provided by them.
Violation of Right to Information. All customers have right to be informed for current status. Omaxe Ltd has never informed me of current status of the project, PDC, reasons for delay in commencements, reasons for delay in preparation of Buyer-Builder Agreement, Reasons for non-availability of home loan etc. This all reflect mismanagement, negligence and careless attitude of builder towards customers. The above stated facts prove that these are ‘Restrictive Trade Practices’ and are absolutely unethical on the part of seller.
Unfair Agreement. Now Omaxe ltd is forcing an unfair buyer builder agreement on the customers which is biased towards the seller. The noticeable and objectionable terms are as follows:
(a) As per agreement, all plans, designs, specifications, drawings, layouts, amenities, facilities etc are tentative and always subject to change without any protest and demur from Buyers and shall be binding to Buyers. (Refer page No. 2 para E & G)
(b) The builder is entitle to effect variations, modifications, additions, alterations which may involve change of position, location, orientation, number, dimensions, area, floor etc without any consent from buyers. (Refer page no 3, para 4).
(c) The buyers have to pay the extra amount in case of any exorbitant increase in the cost of construction material or costs or increase/change in area/height etc. (Refer Page 5 para 11)
(d) The cost of any changes, additions in facilities, better specifications material is to be paid by buyer, as and when demanded by builder. (Refer page 5, para 12) Who will decide that material is inferior or superior? In case of inferior, the cost shall be refunded.
(e) Now I have to acknowledge that all information & clarifications were provided to me as and when asked. (Refer page 5, para 13). Whereas since last 3 years I am asking for probable date of completion, reasons for non-availability of home loan, NOC for home loan, reasons for delay in preparation of buyer-builder agreement etc, wherein no information was provided to me. In fact it is not provided till date also.
(f) The seller has coined a new term as ‘Earnest Money’ as 20% of total sum paid by buyer, which is non-refundable in all circumstances. This practice is non-consumer friendly and unethical. There should be no such earnest money concept. However, if considered essential, it may be earmarked as 5% only. (Refer pate 10, para 33)
(g) If the buyer defaults the payment schedule, he is liable for penal interest upto 24% which is consider higher. It should be max upto 12% only. It must be added that if seller cancels the allotment, the entire amount paid shall be refunded to buyer with 12% interest. (Refer page 11, para 35).
(h) It is to be agreed by the buyers that super area given in the agreement is tentative and subject to change upon approval of final building plan/completion. (Page 12, para 38)
(i) The buyer is not entitled to get the name of his assignees substituted in his place. (para 39)
(j) The agreement stipulates the time for completion of project from date of signing of the agreement. Here, the agreement is prepared by seller after 3 years of delay for unknown reasons, which clearly indicates malpractice to cover-up the delay. The time required for completion of project must start from the date of booking. (Refer page 12, para 40 a).
(k) The builder is entitled for extension of time for completion of the project on numerous reasons, for which it is not mentioned that the reasons are valid during which period. These reasons cannot be valid indefinitely. It must be included that these reasons when arisen within 2 years of booking are entitling builder for extension of time for completion of project. (refer page 12, para 40 b).
(l) The buyer has to take over the building within 30 days of offer of possession and thereafter it shall lie on the cost and risk of buyer. (Page 14, para 40 d)
(m) The builder shall not be liable for any defects, loss or damage to structure, finishes, fittings and fixtures after handing over the possession. (Refer page 14, para 40 d) There is no warranty period for the building.
(n) The offer of possession is subject to no default by buyer. This agreement nowhere stipulates that seller must inform the buyer about the default as and when occur. Seller is to be penalised only for the defaults which are duly communicated to him and a time to rectify is given to him as per principles of natural justice. (Refer page 13, para 40 d).
(o) As per the agreement, the seller has always the excuse for defaults / evasion for reasons beyond their control, whereas, there is no scope for defaults on the part of buyer. With every penalty, there must be clause ‘as exception for the reasons beyond the control of buyer’ as catered for SELLER only. (Refer page 14, para 40 e)
(p) The buyer cannot claim for inferior work, defects and deficiency in work after a certain time period. Buyer shall have the right to get the work done as per specifications agreed. There is no warranty period for the building. (Refer page 14, para 40 e)
(q) After taking over the possession, which is compulsorily to be done within 30 days, buyer cannot claim for any defect, deficiency, inferior material, structural defects or damages. (Refer page 15, para 40 f).
(r) The buyer is entitled for compensation if possession is not offered within 30 months from the date of signing this agreement. The reasonable time for construction after booking is 24 months only. All the customers of this project are already entitle for compensation as the booking date being Feb 2011. This term of agreement is unlawful. (Refer page 15, para 40 g).
(s) If the project is abandoned due to force majeure reasons, the buyer is not entitled for any claim except for refund of money. This should be that buyer is entitled for compensation and interest or similar property at other location, if he wishes. (Refer page 15, para 40 h)
(t) The buyer is not entitled for any objection for future development by seller in adjoining units. Here it must be added –‘subject of no interruption in facilities to the buyer’. (Refer page 16, para 40 k)
(u) The company is authorised to raise loan by creating mortgage of the project land without any objection from seller. Here it must be added that – ‘subject of no effect on home loan entitlement /eligibility of the buyer’. (Refer page 16, para 40 l)
(v) All the complaints lodged by the buyer before possession shall be rectified by the company or company shall pay a reasonable compensation for the same. Page No. (15), para 40(n)-
(w) After possession, any statutory requirement is to be carried out buyer. Here, it is to be clarified, that ‘any statutory requirement arisen after possession’ is to be carried out by buyer. (Refer page 16, para 40 o)
(x) After taking possession, the buyer shall have no claim against the company. It should be there that the company is liable for any defects within 2 year of warranty period. (Refer page 21, para 56 b)
(y) A new para is to be added as – ‘ All original rights of buyer shall remain in full force. The buyer is hereby entitled to get information as authorised as per RTI Act and company is laible to provide all information related to the project e.g. reasons for delay in commencement of work, probable date of completion, reasons for no home loan available, reasons for delay in preparation of buyer-builder agreement, any defaults by buyer, any penal interest levied etc to be informed immediately to buyer, failing which, the seller is liable to pay monetary penalty at the rate Rs. 5000/- per default.
(z) There is no penalty on seller is any instalment is demanded/raised before completion of stipulated work as per payment plan.
(aa) All govt levies payable by buyers should be subject to production of expenditure / payment documents.
(ab) Any deposit with seller is to be entitle for interest at the rate 8% p.a. Maintenance security is to be with interest.
(ac) Maintenance services shall be free of charge within warranty period of 2 years after offer of possession.
Unsure Future after investing all hard earned money. I have invested all of my savings in this property, whereas, it is still not sure whether after retirement from Defence Services, I will be able to move in my own home or not. Till date, I have invested more than 22 lakhs and waited for more than 3 ½ years and still there is no guarantee for owning a home. I had booked this floor with an aim of availing home loan thereby saving on income tax and having a home for resettlement after retirement from Indian Air Force. Omaxe Ltd has spoiled my all plans by delaying and non-providing home loan on the property.
Now from national consumer helpline, I came to know about CRADAI and filing this complaint with CRADAI with a hope to have solutions.
I had purchased a floor in omaxe swarnaprastha floors sonepat scheme in Jul 2011. I was informed that buyer builder agreement shall be prepared within 1 month, home loan shall be available within 2 months and possession shall be offered within 1 year. Now agreement is prepared after 2 years, home loan is yet not available and offer of possession date is not provided. However, installments are being demanded regularly. Till date I have paid approx 23 lakhs but PDC is still not clear. Now my request or demands are -
(1) Omaxe Ltd shall pay compensation per month from Jul 2013 onward for delay in offer of possession till offer of possession @ Rs. 5 per sq ft per month.
(2) A fair and mutually agreed buyer builder agreement is to be executed as soon as possible which should include my terms and conditions as already informed or as per amendments indicated in attached buyer builder agreement.
(3) No further installment shall be demanded till execution of buyer builder agreement and provisioning of home loan to needy customers.
(4) Omaxe Ltd shall pay penal interest on the installment money obtained with false statements of completion of work. Refer my attached e-mails.
(5) Terms and conditions relating to club cost, power backup equipment cost, and maintenance security shall be clarified to customers. I am still unable to obtain clarification on what will be my entitlements with payment of club cost, what will be my entitlement with payment of power backup eqpt money and why the maintenance security which has already been obtained is interest free?
(6) Omaxe Ltd shall share customer details e.g. addresses, contact no, e-mail etc.
(7) Omaxe Ltd shall agree for warranty of the building for 2 years after offer of possession.
(8) Omaxe Ltd shall provide any information related to project sought by the customers as authorised vide RTI act. And same shall be agreed in the agreement also. Any default to provide information related to project within reasonable time not exceeding 15 days, shall be penalised @ Rs. 5000/- per default.
(9) Any default by customers shall be informed as and when arises. Any late information more than 1 months shall not be considered as default. Any penal interest due shall be informed immediately and not at the time of offer of possession as surprise to customers. Any late information more than month about default and penal interest shall be liable to be null and void.
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