Don't turn complacent, consult experts if builder claims nods are in place

By ordering the demolition of Supertech’s two towers within Emerald Court—T-16 (Ceyane) and T-17 (Apex)—the Supreme Court has sent out an unequivocal message that violations of building norms will not be tolerated, whatsoever the cost. This event has emphasised the need for homebuyers to undertake rigorous due diligence before buying property, if they wish to avoid getting embroiled in a protracted court case.

Key violations

In the Supertech case, the developer revised its building plan repeatedly, adding the number of floors.

“Noida Building Regulations have certain setback norms. When constructing high-rise buildings, developers have to maintain a certain distance between towers, which depends on the height of the towers. In this case, the towers were much closer to each other than what was stipulated by regulations,” says G Vivekanand, partner, IndusLaw.

The provisions of the Uttar Pradesh Apartment Act were also breached.

“According to this Act, once the developer has sold units in a project, then obtaining the consent of existing homebuyers for making substantial changes in the building plan is a must. This was not done,” says Anshul Gupta, managing partner, ANG Partners-Advocates & Solicitors.

In the initial maps of the project, there was supposed to be a green area. Later, the developer built the two towers (T-16 and T-17) on this plot, which deprived the residents of a facility they had been promised.

‘Approved’ plans not sacrosanct

One point the Supertech case highlighted was that even approved plans are not sacrosanct. “In this case, the developer had an approved plan. It shows that even an approved plan does not guarantee 100 per cent protection to homebuyers,” says Subhankar Mitra, managing director, advisory services, Colliers India. Prospective homebuyers must not get lulled into complacency when the developer assures he has all the approvals, but do their due diligence, he adds.

Check land permit and consult experts

Homebuyers purchasing a unit, especially an expensive one, in an under-construction project must appoint a real-estate consultant or a lawyer to do the due diligence on their behalf, even though this will require shelling out an additional fee.   

First, carry out the necessary checks of the plot on which the project stands (see box for details).

The superstructure should not violate building norms. “Check whether the height of the building and setback adhere to building regulations. It is these sorts of violations that could lead to razing of the entire structure,” says Vivekanand.  

Make sure that the multiple approvals required from authorities have been obtained. The height of the building needs the approval of the aviation authority. Similarly, environmental clearance and nods related to water and power should be in place. Check whether the approvals are accompanied by caveats. Delays in approvals often lead to deferment of projects.

Take feedback on the developer’s track record

Next, do a background check on the developer. “It’s important to understand whether the builder has delivered projects on time in the past. Apart from verifying from government authorities, homebuyers should connect with existing customers to get feedback on their experience, the construction quality, and the delivery time,” says Gaurav Kumar, managing director, capital markets and residential business, CBRE India.

Before closing the deal and initiating payment, Kumar suggests confirming whether the property is registered with the Real Estate Regulatory Authority (RERA).

“If you observe any infringements by the developer after making the purchase, file a complaint with RERA, or a consumer court,” says Pradeep Mishra, founder, Homents Pvt Limited.

When the real-estate market is booming, a herd mentality takes over. The desire for short-term gains often leads to people throwing caution to the wind and purchasing without doing any due diligence. “With the market reviving, many buyers are once again gravitating towards unapproved projects. This should be avoided,” adds Mishra.

Check land title, usage

• Check the permissible land use—the purposes for which it can be used
• Ensure the title is clear and the land is not embroiled in litigation
• Exercise special care if the project abuts an eco-sensitive zone, a military installation, or any restrictive-use area
• Ensure no objection certificates have been obtained from those neighbouring installations and agencies
• Check the builder's dues with the authority (such as Noida Authority); stick to a project where the dues have been cleared