FAOA ? a step towards regulation in Real Estate in India ...

Nov 22, 2012, 04:42PM IST

In order to tackle grievance and issues faced by home buyers with developers, the Federation of Apartment Owners Association (FAOA) has been launched on19th October, 2012 at the Chelmsford Club, New Delhi.

?Despite real estate being one of the biggest industries contributing immensely to the economy of India, no regulatory body exists where home buyers can approach to discuss the grievances and injustices imposed on them by developers in terms of buying and selling of properties,? says Amit Jain, Director, FAOA.

The federation came into existence with the coming together of several apartment owners with common problems. The complete violation of the Apartment Ownership Act of various states by the developers led to the formation of such a body. ?The? licensing body in the real estate sector, that issues land to developers, has been completely lax in enforcing the laws of the Ownership Act,? states Gautam Ghulati, Senior Vice-President FAOA.

Some of the relevant issues the association plans to take up include developers are charging for parking spaces, settle ambiguity regarding covered area and super built-up area, limiting the profit earned by builders and developers to 15 per cent, handing over the charge of common areas to residents among others, informs Sanjay Sharma, Managing Director, Qubrex, an Associate Partner of the Federation.

?The association, instead of handling individual consumer cases, will be dealing with the Resident Welfare Associations (RWA) of various residential societies. The association will try and cater to those problems which are common to a large number of buyers,? informs Ghulati.

A total of 15 RWAs are already a part of the federation with more than 12000 individual apartment owners forming a part of these associations. ?The federation is still in its nascent stage and to begin with we will take one issue at a time. For instance, we are filing a huge refund for the parking space issue. As per the Supreme Court parking spaces are to be considered a part of common areas and cannot be charged extra for,? explains Jain.

?We have received overwhelming response from the buyers. To tackle this huge response the Federation has a fully dedicated staff and secretariat,? he adds.

A step has been taken in the right direction. However, whether the FAOA would be able to fight on behalf of home buyers against the malpractices prevailing in the real estate industry today still remains a big question for which one needs to wait and watch.

Sruthi Kailas, MagicBricks.com Bureau?

Source: http://content.magicbricks.com/faoa-a-step-towards-regulation-in-real-estate-in-india/

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