[Resolved] VGN Homes — Increase in sq feet rate after booking a flat after one year

someoneresides

from Delhi, Delhi

Address:

Chennai, Tamil Nadu

Dear Sir,

We have booked a flat in VGN Southern Spring Potheri on June 20, 2011. We paid 3,12,000 INR as advance and booked the flat last year. We were told that DTCP approval for the project will be given in 10 days. But approval was given only recently after a year and we were informed about the approval on 31-03-12. We waited for around one year after paying the advance. We had received pre approval for the housing loan also when we booked the flat paying Rs.15000 to the bank

Once the project got DTCP approval, the sales executive gave us the sale agreement to sign off. There was an increase in the price of the flat for about Rs. 50000. We were intimated that the guideline value has been increased hence there is an increase in the stamp duty registration charges. We accepted since that it is reasonable. We signed off the agreement and gave it back to the VGN executive. We didnt receive the agreement back signed off from the VGN MD.

When we followed up, we were informed that there is an increase of about Rs. 500 per sq feet i.e 900*500 RS. 450000 increase in the rate of flat due to revision of guideline value. We didnt accept the increase since we booked the flat one year ago paying Rs. 312000 and we waited for about a year for getting the approval of the flat.

This is mere cheating from VGN builders. How can they increase the rate of sq. feet when the flat is booked a year back. And it is the delay from their side since they didnt get the plan approval. We waited a year for that to be done. If not, we would have registered the flat a year ago. How is it related to guideline value?

CAn any builder do this? All the flats are booked a year back and their possession is given after couple of months only. If a flat is booked in 2011 and if they give the possession by 2012 how can they increase the rate per sq feet due to revision in guideline. Then what is the use of booking a flat one year back , waiting for approval waiting for the flat etc etc.

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Aug 13, 2020

Complaint marked as Resolved

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Comments

Raj1981a

from Mumbai, Maharashtra

In the agreement, it would have been clearly mentioned that the land (UDS part) will be registered in your name only if the booking advance of 15% and 30 to 40% of the remaining amount is paid. Since you have paid only the advance amount, the land is not registered in your name. From 1st april 2012, the guideline value of the land has been increased by Tamilnadu govt. So any registration need to be done in the new rate. For example if the total cost of the flat is 30 lacs last year, in the agreement they would have mentioned that the land value is 4 lacs and the construction, regd exp is 26 lacs. Now due to the increase in the guideline value, they have to charge the land value in the new cost only. They can't reduce the price of the constuction. If they reduce, then it will amount to inflating the construction cost last year. So builders will also do that. To avoid this, you should have followed up with the seller to ensure that the regd is completed before 31st Mar. I did my regn for my new flat on 30th March, thus reducing, around 4 lac additional cost.

mogan101

from Bengaluru, Karnataka

I agree with Raj1981a answer. In general, once you booked the flat try to register the land in your name as early as possible after checking the approval status.

sanjayraj1304

I strongly agree - I got very bad experience from VGN homes. Marketing & Customer care behaviours very poor. As brand company, you should maintain your name. but VGN looking for only MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY. I wont recommand anyone.

sanjanasarath

from Chennai, Tamil Nadu

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LinekerAnto

from Chennai, Tamil Nadu

Can't understand why almost all the builders behaving like this. God should save buyers from these kind of cheaters. They take our money and treating us very badly. They dont have heart. They simply cheating every buyer. I dont know what this RERA or CREDAI doing, why cant they black list these kind of builders and issue public notice for awareness? .