Dealing with sticky projects
There are several reasons for running into regulatory hurdles. Some are due to the greed or negligence of the developers while others may be due to unforeseen circumstances.
The most common causes are:
Starting a project without proper clearances
Mid-course price escalation by the developer
Changes in government policies
Violations of regulations by the developer
Whatever be the cause, the maximum suffering is always borne by the individual customer who invests in such a project. In cases such as Noida Extension, after a long and protracted legal process, the National Capital Region Planning Board (NCRPB) has now approved a master plan and the work that was stalled is set to commence soon. However, the case may not be the same in projects held up due to controversies
There are a wide range of problems associated with projects that land up in controversy after their commencement.
Difficult to Dispose: While projects marred by controversies may come much cheaper than similar properties in that locality, once one invests in them it is extremely difficult to exit. Buyers for properties that are involved in controversies are far and few.
Poor Appreciation: The projects that have any kind of controversy associated with them witness
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