Sushil Kumar Rohila had bought a flat in Chintels Paradiso housing complex in sector 109 in Gurugram in 2017 after investing his lifelong savings but little did he know that he will have to again go through the struggle of getting a dream home as like many others he has also been asked to evacuate his flat on account of “structurally unsafe” building.
Rohila said that he is uncertain about the future of his home as the buyback option provided by the builder is nearly 35-40 lakh lesser than the market price in the area and he will have to shell out more money to get a same size unit in a similar standard society located near Dwarka Expressway.
“I bought this flat at around Rs 1.12 crore in 2017 and now after six years, the builder is offering almost the same amount for a 3BHK unit measuring 1,785 square feet. This is a sheer loss for homebuyers. I feel cheated that after investing so much money I do not have my dream home to spend my retirement,” Rohila told Moneycontrol.
Also Read: One year of Chintels roof collapse in Gurugram: An uncertain future awaits residents
He is not alone, over 60 families of towers D, E and F have been affected by the poor construction quality of these towers and are now clueless about the future of their homes.
On February 10, 2022, two women were killed after the ceilings of several flats in tower D of Chintels Paradiso collapsed. Since then the tower D residents have been living on rent and occupants of towers E and F were also directed to evacuate their flats as these towers were declared “structurally unsafe” by IIT Delhi in February 2023.
Towers D, E, and F were declared “structurally unsafe” by IIT-Delhi, and residents were told to evacuate. The residents of tower D have been living on rent — paid by the builder — in alternative accommodations.
Residents of the housing complex said that the current buyback rates being offered by the builder are 30-35 percent lower than the current market price.
The offer
Chintels India Private Limited, the developer of Chintels Paradiso housing society in Gurugram has offered two options to the residents of towers D, E, and F of the complex.
In option one, the builder has offered to pay an all-inclusive price of Rs 6,500 psf (super built-up area). In addition, it will also refund the stamp duty paid by the flat owners.
In option two, the builder offered to get the property repaired or re-built by some reputed contractor, as per the technical requirements recommended by CSIR-CBRI, and hand over possession within 36 months from the date of receipt of all necessary approvals and removal of any other hurdles in going ahead with the construction.
The builder has also decided to discontinue the rentals being given to residents of these towers, from April 30.
The builder added that in case any tower needs to be re-built, each flat owner who opts for this offer will receive a flat of the same size and layout as the flat owned by them at present.
The developer clarified that those opting for the reconstruction of flats will have to pay an extra Rs 1,000 psf (based on the super built-up area) as there has been an “exponential increase” in the prices of building materials and labour.
Homebuyers' concern
Residents of the housing society said that buyback prices quoted by the developer are “way too lower” than the current market.
Rohila said he had purchased the flat in Chintels Paradiso because of its proximity with Dwarka Expressway, which is likely to be opened in June, and areas of Delhi and Gurugram. “But to get a same-sized unit in sector 109 or 106 which are closer to the expressway and in a same standard society will cost nearly between Rs 1.7 crore to Rs 2 crore at the current market price. Even after buyback settlement buyers will get around Rs 1.25 crore for a 1,785 square feet unit and this money will not be sufficient to buy a new flat in a good society here,” Rohila said.
He said that since there is not much difference between the older rates and the buyback compensation offered by the builder, he would prefer to settle for the redevelopment of the flat.
Another resident of the society, Manoj Singh, said he had purchased the flat for Rs 6,500 psft in 2017 and now after six years the rates being offered by the builder are the same even as the market rates hover around Rs 9,000 psft to Rs 11,000 psft in sectors around Dwarka Expressway depending on the location, floor and the society.
“Chintels India has offered Rs 6,500 psft rate plus stamp duty to Paradiso residents but the same developer is selling flats at a rate of Rs 9,500 psft in its another project named Serenity. It shows that the developer is clearly offering Rs 3,000 lesser than its own rate in its other society. This is an injustice to us and we will raise this matter in our next hearing in the Supreme Court,” Singh said.
He added that residents are caught in a double whammy because if they chose the redevelopment of their flats then also they will have to pay the builder at a rate of Rs 1,000 per sqft, which is wrong.
Singh explained that the approximate price of a 1,785 sqft flat at the rate of Rs 6,500 will be around Rs 1.16 crore and if a stamp duty of around Rs 3 lakh to Rs 4 lakh is added then it comes to Rs 1.20 crore, which is not sufficient to buy a same size unit in a similar kind of society in the area.
Another resident of tower E said, “We do not accept this offer. The builder should either give us compensation at market rate or should redevelop flats at the same location without any extra charge from residents.”
Rakesh Hooda, president of Chintels Paradiso Residents' Welfare Association, said that it is a pre-RERA project and there are over 500 units of different sizes ranging between 1,785 sqft and 3,150 sqft in the society.
One will have to go to those sectors which are located far from the Dwarka Expressway to buy homes at the price being offered by the builder, he said.
What do real estate experts say?
Vikas Saluja, a real estate broker in Gurugram, said the properties located in sectors along Dwarka Expressway have seen a significant price appreciation in the last couple of years. The current market rate of flats in good societies is ranging between Rs 9,000 psft and Rs 12,000 psft.
“The market even has acceptability of Rs 15,000 sqft in the luxury segment. Chintels Paradiso was launched as a high standard society so it is very difficult to get a same-sized flat in any other nearby society of the same standards at a price point of Rs 1.2 crore or even Rs 1.4 crore. The same sized 3BKH flat is being sold at a rate of Rs 9,000 to Rs 9,500 per sqft in Chintels Serenity, which is a segment lower than the Paradiso in terms of lifestyle and amenities. So not to talk of other societies but one needs at least Rs 1.69 crore to buy a 1,785 sqft flat in Serenity only,” Saluja said.
Another broker Sanjeev Taneja said that homebuyers will have to look for sectors such as 107, 91, 92, 81 and 86 among others, which are located a bit far from the Dwarka Expressway. Since the expressway is likely to become operational in June 2023, the properties located around the corridor have become costlier.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
