New Delhi: India’s largest developer by market value, DLF Ltd, has written to buyers in a housing project near Chennai that it will return booking amounts in full to all customers who want to exit the under-development project.
Slowdown effect: DLF’s residential building, Hamilton Court in Gurgaon. The firm has cut prices of its Chennai apartments by 10-18%. Harikrishna Katragadda / Mint
A letter from the company, reviewed by Mint, said the refunds would be made between 1 April and 30 September. Customers will be paid refunds based on the order of exit letters received by DLF, the company said in the letter dated 28 March to buyers.
DLF also said that buyers interested in exiting the project can collect documents related to the refund on 1 April from its office in Chennai. The company has previously said that refunds would be made only to those who are financially constrained.
A group of around 900 buyers of apartments in DLF’s Garden City project on Old Mahabalipuram Road near Chennai formed an online group on Google Groups in March 2008. This group has been exerting pressure on DLF to refund the money paid by buyers who want to exit the project.
DLF has reduced sticker prices on the Chennai development, as also at projects in Hyderabad and Bangalore, but some customers are demanding that the developer cut prices by at least 25%.
K.K. Raman, executive vice-president and zonal head at a local unit, DLF Home Developers Ltd, said the company has received around 250 exit letters. Raman confirmed DLF would start the process of refunding exiting buyers from 1 April and finish it within six months.
DLF Garden City, launched in January 2008, has around 3,493 apartments, out of which 1,800 flats have been booked so far. Apartments in the project at the time of launch were priced at Rs31-39 lakh, but the company has slashed prices by 10-18% since.
DLF declined to specify the amount that would have to be refunded to buyers. “The outgo for DLF will be minimal but I do not want to put a number to it,” Raman said.