Realtor Prasoon Mukherjee backs out of project, buyers left in lurch after endless wait

The proposed buyers have already paid 30 to 45 per cent of the total amount for their flats, which they booked six years ago. Buyers have been given the option of either getting land or row bungalows at Kolkata West International City (KWIC) at market rates.

USE received a 399 acre plot from the state government in 2004-05 for a paltry Rs 99 crore. The row houses – comprising clusters A, B, C, and D – cover an area of 84 acre. Of the 930 row houses, only 615 have been completed in 10 years.

In February 2010, USE floated the Kolkata West Heights, now re-christened Labanya, on 10 acre land. Six G+14 buildings, known as towers, were supposed to have come up on the land. There are four flats, between 1,300 square feet and 1,500 square feet on each floor. In the past six years, only the foundation of the buildings have been constructed. The firm sold the space at Rs 1,800 per square foot. Seventy buyers have booked flats in the two towers.

Abdul Rashid who has booked four flats – two for his family and two others for his elder brother and nephew – said: “It is a clear case of cheating. I booked flats so that all members of my family could stay under the same roof.

 After six years, the company is now asking me to take back my money without interest, otherwise take land or row houses at market price. Why should I agree to it this time? My money got blocked and who is going to give me compensation?” he fumed. “ My family members and relatives keep on asking when the project will be completed and when can we move on to our new flat,” said Rashid.

The reaction of Somnath Dey is similar too. Dey and his wife both state government employees and had booked a flat. As the state government was behind the project, they felt it would be completed on time. Dey said “When the company told us that we could get back our money without interest, I told them that as a proposed buyer, who could not pay instalments on time, I had to cough up interest at 18 per cent per annum. I want interest at that rate. This is a clear case of cheating and the promoter should be punished,” he said.

Had USE received full payment for the 70 flats from its buyers, it would have fetched Rs 16.38 crore –if the area of each flat is taken to be 1,300 square feet and the firm sold the space at a rate of Rs 1,800 per square foot. The firm earned around 40 per cent of the total amount, which is nearly Rs 7 crore, from the buyers who paid between 30 to 45 per cent of the total cost of each flat so far.

As per interest rates fixed under Real Estate Rules, USE received Rs 76 lakh per annum as interest on the Rs 7 crore it collected from its buyers. Over six years, the interest accrued totals Rs 4.82 crore. As a result, the total sum that USE received from the buyers – without carrying out the necessary construction work – adds up to Rs 11.82 crore. The buyers are apprehensive that the firm will again sell the 10 acre  land. It has already sold 30 acre for Rs 150 crore.