Investor Alert Unapproved Housing Schemes

Unapproved Housing Schemes

Investor Alert Unapproved Housing Schemes

Unapproved Housing Schemes

In the recent years a pile of unapproved housing schemes have been launched by many developers. The list is huge and ultimately investors end up losing a lot of hard earned money.  It is therefore recommended that investors should stay clear and real estate agents should take responsibility and educate them to not invest in such societies. It is unfortunate however that many big names of real estate including various real estate portals are marketing these societies instead of educating people because of personal gains.

The big question is what happens if your society or its extension is unapproved?

Well technically if it is not a fraud, the developer has acquired land but as they do not fulfill all the criteria of LDA, they are not given permission to develop the society. In longer run LDA can deny provision of electricity and gas to such societies and therefore even after development such societies will suffer greatly in terms of return on your investment. Case in point is Divine gardens where although houses are constructed however it is still suffering as the developer has not installed the power plant and LDA is denying it electricity and the permission to supply gas.

Unfortunately there is a huge list of such societies and you can visit LDA website for further information, however as an example we will like to mention here about two of such schemes launched recently.

  1. Ferozepur City Housing Scheme : It was a promising development till LDA denied its approval saying that the land of the society is reserved as green area for agriculture etc. Therefore no society can be developed on the land acquired for Ferozepur city. The developer will now have to shift its location or manage to get approval and therefore investing in Ferozepur city may be very dangerous till its status is clarified.
  2. Vital City Housing Scheme : Another unapproved scheme is Vital city , which is still awaiting approval by LDA. Although it does not face any serious issues as Ferozepur city but still we strongly recommend that investors should wait for iFerozepur city housing schemets official approval before investing. Vital CityVital City

 

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