BOOWA Project- increased land cost

[Nammane]

Friends,

I have applied for a site in BOOWA(Bank Officers and Officials Welfare Association, Bangalore) project in Mysore & paid 3 installments.

Initially they said its around Rs 300/sq ft but during/now final installment they are asking Rs 100 more /sq ft saying land costs increased, they were holding my money for 5 years, can't they use interest from that money to offset that cost.

They are asking Rs 25 for other development costs that i have no issues.

My question is how to fight back this increase in land cost, please give suggestions.

TIA
Venkat

[blrsiteseeker]

I am not sure you will be able to fight back on these increase in costs. Check your paper work and see if there is any clause which covers the developer for such cases, if that is in your paper, then forget about trying to fight.

if you bought a 1200 sq. ft. plot, and paid rs. 300/sq. ft, according to your above statement you would have put in 3/4 of the 3.6 lakhs = rs. 2.7 lakhs. Even if that amount (were paid all in one lumpsum at start of your process - 5 years ago), interest at 8% on that would fetch about rs. 80000 (that is assuming entire amount was provided at the beginning). so how do you think that would cover the increased cost.

besides, the money you provide does not sit in an account fetching interest. they would need it to procure land, do the developments, pay official charges - BDA/MUDA whatever agencies it falls under.

Besides, look at it this way - are there any sites in that area selling for as low as rs. 400? You have locked in your rate at a lower price, if you had to start now, it perhaps would have been much higher.

don't mistake me, I am not a developer or anything, but just trying to give you the other's point of view.

good luck.

[Nammane]

Thanks for explanation, this is what i paid

3 installments @300 /sq ft = 540000+540000( bought 2 sites)=1080000 ~ 11Lakhs.

Third installment was paid in 2007 so roughly 4 years they got interest.

First installment was paid in 2006

I believe at least they got some interest as there was no development between 2007 & 2011.

Reg
Venkat

[praveend]

There was a meeting on 5th July 2015 in Bangalore. Any one was able to attend? I didn't got the invite to new address, though I updated with them multiple times. What was the decision taken?
AFAIK there are close to 300 allottees in phase 1 of the Mysore project. We should be proactive to get the site registered ASAP.

Thanks,
Praveen

[praveend]

Any Update on this! My Money ~11 Lakhs is stuck with them for over a decade! They have already got the MUDA approval and now they are quoting reasons of the builder!
Please Share your contact number. I will add to the existing BOOWA MYSORE whatsup group. This is the best way to collectively work towards getting out sites registered ASAP.

[praveend]

Looks like the land lord and Developer has stuck to deal to block the money of allottees. Now the BOOWA staff are saying Landlord is not ready to sign the Registration papers and wants more money!
Already we had paid much more than market prices and that too many years ago. Not sure how long we have wait or we should lose our hopes!