News report about ‘housing scams’ in Islamabad (Pakistan) where the project was cancelled and money returned to the buyers were slow. Effectively, we think that the buyers should be paid both for their lost of bank interest and time as well.
There are many ways in which the scams take place. Sometimes, the
housing society informs the buyer that the project is being disbanded
and that the money will be returned. The only problem with this is that
it takes some time before the money is returned and when it is, a
certain percentage is deducted under the head of ‘processing and
administrative costs’. This is nothing but outright robbery since there
is no logic why the purchaser should be punished on account of the
project not going ahead as planned. In reality, this is just a nifty
way to make some money; the allotments are cancelled and then re-sold
at higher prices. Of course, scams can happen even in societies that do
eventually provide homes to their clients. Here, the difference between
the facilities and quality as promised in glitzy infomercials aired on
various TV channels and what is really given is substantial. But the
poor purchaser has no forum to turn to, except to file a legal suit.
However, since this option means several years of wrangling in court
and expensive legal fees, most homeowners end up doing nothing….