Re: How builders cheat you in India?

Since my return from the US in 2006, I have painfully learn't the different ways, how the builder can cheat you in India.
I am summarizing them below for your easy reference for readers who in the market to invest in India and getting ready to part with their hard earned savings.

Before you give any first check to the broker or builder please verify the facts and have your contract approved by a competent lawyer.  
Make sure it has exit clauses if the builder fails to start construction in a timely manner.
Full refund should be made with the same amount of interest rate that the builder wants you to pay for any late payments.
The penalties the builder will give in the event of late deliveries should be with no strings attached and should commence immediately every month.  
If not paid, it should carry the same amount of interest that the builder is demanding for any late payments.
All disputes should be handled in the Delhi courts and not by arbitrator appointed by the builder.
Do not sign any agreement if you not satisfied or the company agreements that are written to protect only the builders and not the buyers.
You could be blackmailed in to giving second and other payments even though no construction has commenced.
The two or three year delivery period should commence from the date of the first check not from the date of the construction commences on your tower.
The builder must be the owner of the land, has the appropirate licenses to start the project and the project must approved by reputed banks for loans.
Also check, what has the builder delived in the past and what is his reputation in the market.  
If you will act in haste, you are sure to repent at leisure and will be spending many yeas in the Indian courts trying to get your money back with damages and only a small percentage of people manage to recover them.

How builders cheat you in India

1. Late delivery by upto 3 or more years without compensation and without clues when posession will be given by some.
   
2. Actual apts different from what was shown in the sample flat - deception, unfair trade practices.
   
3. Quality of fittings can also be poor.
   
4. Super area being increased while the net carpet area remains the same or is less.
   
5. Builders sell space meant for parking/open areas and convert into apartments / garages.
   
6. Buyers being slapped with additional electrical charges while the basic wiring is suppose to be included in the cost of the unit.
   
7. Buyers being forced to pay one year maintenance in advance and large amounts for security - not allowing home owners association to take over maintenance.
   
8. Club facilities not ready at the time of posession.
   
9. Builder force you into arbitration appointed by their own lawyers and not the Delhi high Court in the event of disputes.
   
10. Court hearing are unncessarily delayed to frustrate the customers and the decisions will not be respected by the builders.
    
11. The same apartments can be sold to more than one person.