Govt. Initiates Steps against Pre-Launch Offers

Pre-launch offers by real
estate India developers are under a cloud, and the Ministry of Corporate Affairs is keeping tabs on such announcements ever since malpractices under the scheme came to light.

The Ministry has received a host of complaints from individual investors
against some real estate companies who are resorting to unethical business
practices through this medium.

Field officers of the Ministry have already been issued instructions to
watch out for such announcements from the developer community, as well
as check their claims on having the necessary approvals in place.

The issue
could be taken up the Monopolies and Restrictive Trade Practices Commission
(MRTPC).

Haryana has already taken the step of banning pre-launch offers, where
real estate developers have collected large sums of money before any
approval was received.

Real estate consultants Jones Lang LaSalle Meghraj
warns that investors are at a risk if the builder goes for a pre-launch
offer without getting the mandatory approvals.

The builder needs to
be transparent with the customer on these issues when he makes a pre-launch
offer, as is the practice in other countries.

Photo: Supreme Court of India, inside buildings 01 by Pinakpani, licensed under CC BY-SA 4.0, via Wikimedia Commons.