Developer Report Card: NCR’s Earth Infrastructure

Delays, false promises and almost no regulatory mechanisms to control errant developers; that is the state of affairs in the National Capital Region’s (NCR) property markets. As a result there is massive buyer unrest in the region, with new protests against developer delays coming up almost every other week. Today, we highlight the case of Earth Infrastructure, a company which launched a slew of projects in the NCR only to leave its customers homeless.

Earth Infra’s Buyers Left Abandoned

An abandoned field with almost no activity taking place; this is supposed to be the site of the Earth Titanium Studios project in Techzone-6, Greater Noida. The project was started in 2012, offering studio apartments and space for IT offices. 4 years on and not one structure has been completed. What’s worse? The company has been promising to give 12% per annum, assured returns to its customers until the date of possession. But as things stand, that promise too has been broken.

“I booked the flats in 2012 for investment and till few months back, I was getting my 12% returns. The developer promised me to give assured returns till the date of possession and now he has completely ditched us. There is no construction at site and the project is abandoned.” says Harshvardhan Daga, an entrepreneur from Delhi who had booked 4 studio flats in the project as part of his investment plan.

It is the same sad story at other projects being developed by Earth Infrastructure. Dr. Gurdeep Singh claims to have booked a flat in the Earth Towne project in Greater Noida West and was supposed to get possession in 2015. A year later, he is running from pillar to post to find answers.

“It’s been a nightmare, I have paid almost 90% of the amount and I am still clueless over the possession. I am not getting any answers from the company over the possession timeline and only 50% construction has happened at the project site. I am stuck.”

Industry data shows that Earth Infrastructure has 9 projects in the NCR which have been delayed by 2-3 years. 3 commercial projects in Greater Noida and Yamuna Expressway are also running behind schedule. What’s worse, when NDTV contacted the Greater Noida Development Authority to get more details on the company – we found out that Earth Infrastructure has not paid its dues to the authority in years, with the total amount of outstanding dues standing at Rs 33 Crores.

Buyers To Take Legal Action

When NDTV got in touch with Earth Infrastructure’s director Atul Gupta, he initially agreed to clarify how best the company would fulfill its promises, only to later ignore all calls and messages. That is the same treatment that the company has been meting out to its customers.

Is it any surprise then that these homebuyers are angry? Legal experts are now counselling them to file complaints against the developer.

“The buyers can approach appropriate criminal authorities which may include an EOW (Economic Offences Wing) and file a complaint and if the complaint is not adhered by the authority then they can seek other remedies. Buyers can file an application before the magistrate under section 156(3). Other option the buyers have is to file a complaint before the jurisdictional consumer forums seeking a refund by saying there is a deficiency of services on behalf of the developer.” advises Supreme Court lawyer, Varun K Chopra.

That’s advice that many buyers and investors are taking to heart. Some investors have filed a case in the EOW and are planning to take the legal route to get their money back. As for assured returns, the NDTV Property team maintains its stance. Such schemes may look attractive initially, but can prove to be a nightmare later as proven in the case of Earth infrastructure.

Reporter : Chankya Bhatia, NDTV
Web Editor : Nikhil Narayan Sivadas, NDTV

TwitterLinkedInGoogle+FacebookShare on WhatsApp