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Uttar Pradesh: Financial crisis shatters housing dreams from manyLUCKNOW: Several people who had booked housing units over the past few months are now cancelling the bookings because of a significant drop in income.

The Covid-19 outbreak and lockdown have triggered an economic crisis affecting people in various ways.

As many as 105 people in Lucknow have lodged a petition with Uttar Pradesh Real Estate Regulatory Authority (UPRERA) e-court for a hearing to get a refund of booking amount as they are now facing financial crisis and have dropped their plan to buy a house.

Mayur Jaiswal, a local businessman, had booked a 2BHK flat near Chinhat being constructed by a local developer in October. He had paid 20% of the Rs 22 lakh cost of the flat.

However, owing to a financial crisis now, Jaiswal asked the developer to cancel booking.

Refund complaints account for 56% of total 185 pleas

When the builder refused, Jaiswal lodged a complaint with the online portal of UPRERA, seeking directions to the developer to cancel the booking and refund the amount.

“I run a travel agency. But, for the past two months, there has been no income due to the lockdown. Hence, I am not in a position to invest in a flat,” he told TOI.

Refund complaints account for 56% of the total 185 petitions filed with UPRERA’s portal during the lockdown since March 25.

While 56 of these complaints are related to delay in possession of housing unit, 15 are for compensation for not giving promised facilities.

UPRERA officials said that most of the complaints registered under the ‘refunds’ head are those in which allottees had booked housing units by paying 15-20% of the total cost, but now want to cancel and get their money back because they are not financially stable at this point to purchase a unit.

UPRERA secretary Abrar Ahmed said, “We will start attending to the complaints from May 8 through video conferencing.”





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