Homes de­liv­ered, but cash crunch stops buy­ers from moving in

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - — Van­dana Ram­nani

For many buy­ers, the joy of re­ceiv­ing pos­ses­sion of their homes is fast turn­ing to dis­may as they can­not rus­tle up the fi­nances for re­lo­ca­tion – that too in cash. Some builders are cit­ing de­mon­eti­sa­tion and the sub­se­quent labour crunch as rea­sons for de­lay in projects.

San­tosh Ku­mar, who re­ceived de­liv­ery of his Greater Noida West apart­ment ear­lier this month, says he can­not move in be­fore April as he does not have cash for the movers and other ex­penses. His project is one of the many hous­ing so­ci­eties where even though 1,300 peo­ple have reg­is­tered their apart­ments, only 500 peo­ple have moved in.

Sh­weta Bharti, gen­eral sec­re­tary, Noida Ex­ten­sion Flat Own­ers Wel­fare As­so­ci­a­tion also con­firms that some de­vel­op­ers are cit­ing de­mon­eti­sa­tion to jus­tify the slow­down in work and late de­liv­ery of projects – but orally. No let­ters have been sent to buy­ers. “When­ever we visit the con­struc­tion site and in­quire about the progress in work, we are told that the cash crunch and lack of labour has de­layed work,” says a buyer.

Out of 50,000 houses that were to be de­liv­ered by end of this year in Greater Noida West, only 12,000 have been handed over for­mally.

Unor­gan­ised labour from Bi­har and Mad­hya Pradesh hired by de­vel­op­ers on a short term ba­sis have gone back to their states due to the cash crunch. Usu­ally, a project site has 15% per­ma­nent labour­ers. About 85% tem­po­rary labour­ers. most of whom do not have bank ac­counts, have gone back. This has had an im­pact on project con­struc­tion and led to de­lay in de­liv­ery of projects, says Praveen Jain, pres­i­dent of Naredco.

Am it Mo di, whole time direc­tor ABA Corp and vice pres­i­dent, Credai Wester n UP, says that there has been a 25%labour short­age. His com­pany has taken the ini­tia­tive to open bank ac­counts for work­ers and even de­cided to pro­vide them daily meals.

“Builders were un­der pres­sure to com­plete projects be­fore the real es­tate reg­u­la­tor is put in place across states and were hop­ing to com­plete them by Fe­bru­ary next year, but de­mon­eti­sa­tion will lead to fur­ther de­lays. If projects were de­layed by a year to three years ear­lier, they will be fur­ther de­layed by six months to a year due to cash flow is­sues,” Jain adds.

BURHAAN KINU

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.