Accommodation Times News Services
By Dr Sanjay Chaturvedi
The pre launch rates are cheap and it is before an official launch of a project. Brokers and agents active for a builder through the dynamic and glamorous marketing team of builders lure the first phase of selling the project in pre launch rates. In entire India, pre launch norms for booking in a projects is catching fire because builders promise to give lower rate and on launch increase the rates. No buy backs no guarantee and no documentation.
Property purchasers have stuck their hard earned money in many such projects. Fly-by-night operators are active and even without any clearances of plans or full acquisition of land and FSI, pre launch offer are flooding the real estate market. Many projects are stuck becuase of various reasons like for example Man Infra project at Mira Road. At the time of booking at pre launch offer, Man Infra took Rs.3800/- as booking and after three years also the project did not start. Man Infra through its sales agents is offering to buy back the booking at Rs.5200/-. The interest free money through such pre launch is in offing where builder want of funds pre launch projects without any NOC, Land or clearance. Uses the money and after years return back the money with 12% simple interest and see a huge capital appreciation. At the time of need of funds, pre launch are taken and at the time of delivery, return the advances and starts a new booking for the same project.
Bakeri in Ahmedabad allotted NA plots 4 kms away of original land as promised after two and half year of booking and taking money. Such pre launch are dangerous and uncertain. It will be without any paper, without any agreement and without any guarantee. In NCR, almost 60% of the projects are going slow for want of funds.
The same old story of builder is happening again. Short term borrowing and long term investment. The working capital and advances from projects and pre launches are invested in lands for future constructions.
A very risky proposition, pre launches are like sitting on barber’s chair and his razor on your neck.