Realtors,activists caution investors on pre-launch offers

Admitting that although,such offers are technically not illegal on papers,realtors say the customer should be extra careful while investing. In fact many builders point out that in case of small and medium-scale builders,who find it difficult to raise capitals for their project,often resort to take money from potential customers in the form of pre-launch offers.

Sanjay Patil,sub divisional officer Maval,said,“Legally,such transactions are not allowed.”

Managing Director of Goel Ganga group Atul Goel said customers should be extremely cautious before entering into such deals with the realtor. “Such deals depend on the relationship between the builder and customer.

The track record of the builder should be checked before entering into such deals. Also proper documentation should be maintained by the customer,” he said.

Managing director of Gera group Rohit Gera echoed a similar opinion. He said the customer should ask for post-dated cheques as a safeguard in case the builder’s plans fail. “It is a risk. If it is pulled through,it is a win-win situation for the customer. In any case,proper documentation is required,” he said. Meanwhile,activist Vijay Kumbhar said pre-launch offers are illegal as transactions are made on futuristic approvals.

Shrikant Paranjape,MD of Paranjape Schemes said the government will enact a legislation banning such offers and advertisements.

“As a builder my advice to investors would be to look into the plan before investing. I believe investors are wise enough to understand the details of the projects,” he said.