Several high rise builders in a blue funk
View(s):As many as three prominent high rise builders are under the bus. They are facing wrath not only from buyers but also from employees. Buyers are at war with them for not giving deeds amongst other issues such as substandard materials and incorrect specifications while the staff is at loggerheads with them for not giving them their dues.
“We were not paid salaries for the last three months,” an employee of a construction firm that’s going down fast, speaking on anonymity, told the Business Times that he is marking time till he gets paid. But he doubts this. He also said that about 150 staff in different capacities has left. Now about 100 more staff is still employed. This company also has more than 50 labour cases.
He said that this builder had issues after 2015 when the government changed. Owing to the bonhomie between developers, the authorities and the contractors, projects get sanctioned easily but the quality of construction goes unquestioned. Earlier most plans were passed without approval from the planning committee. And there were instances when members who disagree with the majority decision are ignored or coerced, an ex-employee of the same construction firm told the Business Times. “Now they scrutinise all approvals and if it is not within the law they (authorities) go to courts,’’ he added. This little ‘reorganisation’ put these builders in a spot. The employee said that now they can’t submit the deeds as the authorities don’t approve them. “There are owners who are awaiting the deeds for the last two years,” he said. He said that this particular builder has as much as 20 apartment sites that aren’t operating now. This is mainly due to not supplying materials on time and staff issues.
He said there is corruption in a few projects where contractors use substandard materials, reduce the specified number of steel bars in beams that support structures, and compromise on the concrete mixture by reducing the ratio of cement and the buyers complain.
These builders are also in a soup with financial institutions. Now that the underlying demand-supply situation has turned really dicey, it remains to be seen whether these developers will feel enough pressure from banks to cut apartment prices and clear inventory, an analyst observed.
(DEC)