MoneyControl
CNBC-TV18 has access to e-mails of buyers of the project, including an online survey showing that over 50% of them want to pull out.The company started bookings last April and promised to sign the agreement within 45days. But nearly one year later, the project has not even got the necessary approvals.
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There are other issues as well; buyers want an Undivided Share of Land clause to be signed by the company. Also; clubhouse facilities, which DLF claimed were exclusively for buyers' use, is now being thrown open to outsiders as well.

What are the options now available to the buyers? A minority section of say they might just re consider their decision to pull out if the company meets their demands. The others though say that they want their money refunded and have given the company till February 12 to do so.

MoneyControl
CNBC-TV18 has learnt that of the 600 buyers, who had threatened to pull out of the project, 100 of them have already done so and the balance 500 are waiting to hear back from the company, which is putting the finishing touches on a package that it claims will bring down the cost of ownership for buyers.

Reading in to the contents of that package, while it is anticipated that the company will reveal the finer details on Monday, industry watchers say it could be a 20% price discount and the price discounts could also be offered to those who intend to upgrade their plot sizes from smaller to larger areas.

When contacted, a DLF spokesperson said, “Cost of ownership will be lower. The cases of those who want to pull out after evaluating the package in view of the circumstances they are in will be reviewed. They will be refunded as per company policy”

DLF has also said that it will be able to complete the project on time, i.e., between April to June 2011, the original date committed.

CHENNAI: Shaking up the city's realty market, DLF on Monday announced a hefty price cut, ranging from Rs 3.6 lakh to Rs 12.6 lakh, for its residential project Gardencity - on the Old Mahabalipuram Road (OMR).

It would benefit existing as well as new customers, said K K Raman, executive vice president, DLF Chennai. The builder has introduced four price slabs, three for old customers and one for new entrants. Those who booked apartments during the soft-launch of the project, at Rs 2,800 per sq ft, would get a discount of Rs 300 per sq ft. The new price for those who booked at Rs 3,000 per sq ft last year is Rs 2,550 per sq ft. The maximum discount of 18.75 per cent Rs 600 per sq ft has been given to those who booked at Rs 3,200 per sq ft between August 2008 and February 2009. The price for new customers is Rs 2,650 per sq ft; the price will hold till May 31, 2009.

While the minimum savings on the smallest apartment 1,200 sq ft at Rs 300 per sq ft works out to Rs 3.6 lakh, the maximum benefit for the largest apartment 2,100 sq ft at Rs 600 per sq ft is Rs 12.6 lakh. This is also the highest price cut announced for an ongoing project by any promoter in Chennai after the economic crisis set in. Significantly, the promoter has also decided not to collect any interest for delayed payment from existing customers.

Speaking about reasons for taking such a drastic step, Raman said: "With unprecedented events in the world economy affecting the real estate sector here, bringing changes in input cost and interest rates, DLF went back to the drawing board and created further efficiencies. These benefits are being passed on to consumers."

DLF entered Chennai's residential sector with a bang in January 2008 by announcing the biggest project of 3,493 apartments spread over 53.5 acres in Semmanchery, 2 km off OMR. Its soft-launch made headlines with close to 2,200 people booking flats in less than two weeks. All major empanelled realty consultants were in the race for clocking the maximum number of bookings for the project. Three months later, when the formal launch happened, several hundred customers opted out, perhaps anticipating the market downturn in the months to follow. The DLF sales team took several months to make up for those cancellations. Currently, the project has about 1,800 bookings in the first two phases.

Ramesh Nair, MD, Jones Lang LaSalle, an international realty consultant, said: "DLF's price revision could drive up demand for the project as it becomes more affordable for home buyers. It will also lead to most developers reducing their unit sizes and building specifications apart from reconsidering their pricing strategy."

At least half-a-dozen residential projects on OMR, in which private equity funds, mostly foreign, have been parked on a pre-agreed condition that sales will be effected at a minimum price of Rs 3,200 per sq ft, will be affected by the DLF move. Also, customers who had booked apartments in other ongoing projects on OMR at higher prices could apply pressure on their builders. In short, a price correction for properties on the much-hyped OMR is perhaps underway.

"GC google group members core demands have not been met and also this reduction is not even close to bangalore and hyderabad DLF projects. Everybody had expected atleast 20% from the soft launch price. Disappointed and will exit from the project."

Internet hobos stalk DLFFirst Published : 06 Mar 2009 03:28:00 AM IST
Last Updated : 06 Mar 2009 07:31:13 AM IST

CHENNAI: These days of slowdown stories abound and though no Grapes of Wrath would be written there’s wrath enough on display to spin a web of it. One that has caught the imagination has an amorphous group of individuals waging an Internet war against the country’s biggest real estate player – DLF Ltd., their allegations difficult to check because there are no names to call though there is enough of name-calling in the write-ups some of these unidentified worthies have posted on the net.
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“There were three groups of buyers – a block of 75-80 per cent who were decidedly end-users, another smaller block of those who intend to rent out the units they bought and a third block who grabbed the flats for speculative gains,” says Sanjey Roy, senior general manager, Corporate Communications, DLF Ltd. “These are the people who are behind the calumny directed against DLF. I call them speculationactivists.

They claim they are 600 plus but we know they don’t number more than 150.” Among other demands, the group has been asking for a cut in prices given the current economic crisis. The group also managed to carry their grievances to the media.
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But these have failed to rein in the group of individuals waging the Internet war against DLF. “Instead, they have upped the ante,” says Roy. “They are instigating existing satisfied customers, asking them to join hands with them and fight for their unreasonable demands. Isn’t it strange they haven’t gone to court?” Roy insists the company has done everything according to law. He says the application forms that the customers signed clearly states all the terms and conditions and that DLF had nothing to hide; and that the project would be completed on time; the units ready for occupation by March-April 2011, as promised.
There the story stands; the wrath refusing to get off the anonymity of the Internet and show its face.

Dear Sir, since I did not know the exact meaning of the word "hobo", I quickly searched on Google and found the following definition: "tramp: a disreputable vagrant; "a homeless tramp"; "he tried to help the really down-and-out bums" ". I really feel that this is not acceptable and this reporter owes an apology to the members of our group for branding us as such. We are all well educated, decent people trying protect our interests in a fair manner. We can explain our point of view if you can give us a chance. As Mr.Ram has pointed out, you would have access to all or email ids and should contact all of us to understand our profiles and then you will definitely not term us as "hobos".

By Sundar
3/6/2009 6:51:00 PM

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Dear Sir, I am one of the buyers of the DLF apt at Gardencity-Chennai and am part of the DLF apt buyers group (DLF Google group). Our group is about 1000 members strong. I joined the group only recently in Feb-09 owing to the issues faced with DLF (which I have summarized below). Pls note that our group is not faceless and has individuals from the various fields (software professionals from reputed firms, enterprenuers, professionals, Eminent Bankers, Executives of MNC, NRIs, etc). We recently held a meeting at Taj Coramandal hotel at Nungambakkam which was attended by our members (200+) to discuss the pending issues and next steps. This was covered by some of the media houses as well. Pls note that most of the group members (around 700 members) want to exit the project due to issues highlighted below. The rest are undecided and will continue if the issues are resolved by DLF by Mar-10. Most of these members who want to exit have already submitted their exit letters and are eagerly

By Senthil
3/6/2009 10:34:00 PM

--x--

Any sane person who reads the second para of this article that 'describes this project' can easily figure out that the article is NOT composed by a honest reporter, but by some other people with vested interests. I strongly condemn this biased article. The usage of terms like hobos, faceless, unidentified worthies and etc., are totally uncalled for. I request the editor-in-chief of this reputed newspaper to look into this matter and make sure such biased articles are avoided in future. FYI… The Hindu Businessline referred the activities of this group as 'Buyer Activism' in one of their articles dated 01-March-2009 and the Economic Times referred our efforts as 'rare show of consumer activism' on 21-Feb-2009

By Prabu
3/6/2009 9:21:00 PM

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It is a travesty that a news paper powered by the ideals of Ramnath Goenka has stooped to this level of 'corporate journalism'. What happened to the trade mark 'investigative journalism' espoused by Express Group? It is also an irony that author who does not give his/her own name to the article calls intrepid bloggers 'faceless hobos'. It is very clear to any layman that article is totally DLF sided, criminally silent on real issues being discussed by bloggers over internet. Let readers decide where truth lies.

By Prasad
3/6/2009 7:00:00 PM

In the meantime, the DLF’s K P Singh was the only real estate representative among a group of Industry bigwigs invited to meet Prime Minister Manmohan Singh to discuss the financial crisis and its impact on India. “This was the first time in 62 years somebody from the realty sector was given the honour, putting the stamp of ‘Industry’ on the sector,” says K K Raman, head-homes, DLF, Chennai.

Being active part of the group, lemme give you the true picture: Speculators us? We are negotiating with DLF to work our amicable terms, which is why no criminal suit has been filed yet. DLF has been stalling us saying they are working out an amicable way, a fair option which we want to pursue so you should understand why no case has been field yet. You should have come and taken names, addresses, phone numbers of people who participated in a meeting organized at Taj hotel last Sunday and then u can decide on calling us FACELESS. Why would DLF hold talk with faceless people? Well this fight just got bigger.

1. We have not signed any buyers agreement yet. which has worked to our advantage. An application for allotment has been given. That's it. Please verify this with DLF.
2. DLF took the money from us almost a year back (31-mar-2008) and only recently 'CLAIM' to have got the approvals. Ask them for stamped drawings and approval details.
3. Club which was lifetime free at time of booking turned out to be 2 year annual payments . Ask them why?
4. A 5 acre forest land inside the complex was shown in initial brochures by DLF to be their own. Now we've discovered that it belongs to a freedom fighter whom they are trying to buy it off from. Is this legal? It is clear .. I don't want to call the number.
5. A short 2KM, 60 ft approach road to the project was promised. Now it seems people will have to travel another 16 km additionally each day. Clear breach of misleading and amounts to breach of contract if any.
6. When booking a 1400 sq ft flat suddenly shot up to 1520 sq ft with 10% increase in carpet area.
7. 850 of us have submitted exit letters. On saying unless money is retuned we will file a criminal case DLF agreed to return the money, which has not happened yet. DLF claims only 200 people have submitted exit letters?
8. DLF claims we are speculators/investors. We are infact end users.
9. DLF unless they pay back the money with interest by mid-march, we will be staging dharna, hunger strikes, protests soon. So u can expect a lot of action soon.
10. YES A SINGLE TWIG CAN BE BROKEN. NOT A BUNCH!

By Vijay
3/6/2009 5:48:00 PM

LiveMint
"We are not refunding as such but are just swapping existing sales with new bookings," a DLF spokesperson said.

"We see the genuineness of the customers and then consider this option. Some people have lost their jobs and some people have got pay cuts. We verify with their employers and then consider it, if we find it true," said DLF's spokesperson. He said that bookings of five-six people have been swapped with those of new buyers.

When asked if this option would be given to all the people who have sent exit letters, he said, "This is not a current account that you put in the money and withdraw whenever you want to. There is nothing general or in-principle about this move. Being a big company, we emphasize on customer relationship and on humanitarian grounds, we consider their (buyers') requests."

DLF Spokesperson
"This is not a current account that you put in the money and withdraw whenever you want to."

On the issue of operational model of the club, Raman said that limited period membership gets linked to ownership of the apartment and was therefore beneficial to the operation of the club.

Last, on the question mark on the "5 acres within the site", Raman said that "parcel of land does not form part of the existing project" though the company was in the process of acquiring that piece of land.

"We are waiting for some unauthorized construction along the road to be demolished, as soon as that’s carried out by the authorities, the approach road would be broadened to 60 feet," a DLF executive at the site told The New Indian Express.

"The majority of the customers who had booked apartments in Gardencity are endusers and they have appreciated and benefited from the attractive price rebate that DLF announced recently." Raman said the remaining 150 or so who have sought exit would be allowed to do so in a planned manner as DLF was keen to see only end-users ending up owning homes in Gardencity DLF-OMR.

As for those who had applied to exit the project they are being phased out of the project at a certain number per week basis even as some who had applied to exit are believed to have re-applied to re-enter the project.

"There are various risks attached to the undivided share sale and construction contract route. We feel it is in the overall interest of the project and customer that a consolidated conveyance of the apartment, parking rights and undivided share of land is done after receipt of the certificate for use and occupation of the buildings, as we have indicated in the application form."

Express Buzz
Bowing to their written commitment demand, DLF's representative K Srikanth dispatched a detailed letter to all exiters and pacified them with the announcement of speedy redressal of their refund.

It may be noted that the local representatives of the company failed to present an amicable solution with the agitated buyers for last several months.
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Besides people from southern districts of Tamil Nadu, many from North India and even from the Middle East came down to Chennai for a final push for their immediate refund process.