BUSINESS

DLF may offer more to Gurgaon project buyers

By Joe C Mathew in New Delhi
March 31, 2009 10:48 IST
DLF, the country's biggest property developer, may announce a "relief package" for customers of its second Gurgaon project, 'Express Greens', a few days after it announced a similar package for those who had booked at its 'New Town Heights' residential project, also in Gurgaon.

The KP Singh-owned developer might announce a price reduction as well as construction-linked payment for Express Greens, sources said. The company had told its customers not to pay any instalment after the initial 35 per cent advance payment till construction commenced, some customers told Business Standard. A DLF spokesperson declined comment.

In the original agreement, DLF could take time-bound payments from customers without progress on construction. The company recently introduced a "construction-linked payment plan" for its New Town Heights customers.

Express Greens, launched in August 2008, is one of the biggest mid-income housing projects announced by DLF around Delhi. The company is in the process of getting plan layout approvals and environmental clearances for the project.

In a communication to customers, DLF reiterated its commitment to complete the project within three years and said the company had decided not to ask for installments till the start of construction. Express Greens is supposed to have three-bedroom apartments of 1,760 sq ft and four-bedroom houses of 2,125 sq ft, costing Rs 46 lakh to Rs 69 lakh.

The company also hinted that it was working on a relief package and the details would be finalised soon. Customers, however, want DLF to be clearer on when the work will start.

"DLF has not indicated what are the approvals they require and when they applied for these. We can only hope there is no delay," said a person who had booked a flat in the project, declining to be named.

Last week, DLF offered as much as 20 per cent discounts to customers of the New Town Heights project. It announced 5 per cent discount on the basic sale price and a 10 per cent timely-payment rebate. The changes also included an increase in the compensation rates for delays from Rs 5 a sq ft per month to Rs 10 per sq ft.

Joe C Mathew in New Delhi

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