The Tatas have scrapped an affordable housing project in Vasind near Shahpur for want of environmental clearances. Tata Housing had launched two affordable housing projects in the area – Shubh Griha and New Haven — with a total of 2,500 units in 2010. While a major portion of Shubh Griha was completed, New Haven got stuck in red tape and never took off.
The project, announced at Rs 2,100 per square foot, was to have 1,250 houses at prices ranging from Rs 5 lakh to Rs 35 lakh. The response was so good that the project was overbooked in a matter of months with customers paying 20 per cent of the project cost.
But three years after it was announced, investors started receiving letters from the company this month saying the project has been shelved and that they could take their money back with 12 per cent annual interest. Alternatively, investors are being offered houses in other similar Tata projects in nearby areas at a 2per cent discount on the market rate.
“Though we have been trying to get the necessary sanctions and approvals and have been rigorously following up with the concerned authorities, the approvals for a small part of Shubh Griha and New Haven have unfortunately not been granted as yet,” said a company spokesperson. “It is very unfortunate that the continued delay in clearances from environmental authorities over the last two years have led to the cancellation of booking of some units.”
Customers, however, said that even though Tata is offering a refund with interest, prices have appreciated to an extent that they cannot invest in the same area now.
“Even if I take back my investment with interest, it will not be possible for me to buy a house in this area now,” said Aiyaz Shekh, a government servant who had booked a 2 BHK flat. “I booked the 688 sq ft flat for Rs 15 lakh. Now, the price has gone up by 50 per cent. I will not be able to afford a house at that rate.”-from TOI
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2 replies on “A costly lesson for Tata Housing buyers”
Ever since Rajkapoor made Shree420, there are many such instances of Promises made and not kept!
Housing, whether it is made by Tata or Birla, itself is a trap, and if anything goes wrong, it is a double trap. I pity the state of mind of those who entered into this, as the regret is for a lifetime. On one hand they feel cheated, and on the other hand , they compare with the lost opportunity…….
Tata inspite of incomplete project as per plan they advertise, still collect money to push flats unsold. The value for which JRD lived for is now compromised. The big joke is they call this as Tata Value Homes, value for whom?