ISLAMABAD: In a society where the dream of owning a house is cherished by every citizen, the harsh reality often unfolds as property tycoons exploit the emotions of individuals seeking a home. The unregulated environment allows housing society owners to manipulate and take advantage of people’s dreams, leading to financial loss and emotional distress.
Investors, driven by the desire to have their own abode, invest hard-earned money, including pension funds or proceeds from the sale of valuables. Unfortunately, many discover later that the housing society was either illegal, or the collected funds were mismanaged, resulting in delays in plot development and possession.
Recent cases, such as one in the suburbs of Rawalpindi, highlight the issue of exorbitant charges imposed on investors in the name of development expenses. Social media platforms are flooded with complaints from investors against society owners, accusing them of acting like a mafia, exploiting weaker regulations to fleece people.
Investors like Rashid Mahmood express frustration, emphasizing the lack of transparency in land prices versus what buyers are charged. He advocates for the government to maintain a transparent record of property transactions by housing societies, preventing developers from acting arbitrarily. Stricter laws are needed to ensure a fair balance between developers and investors.
Instances of societies’ owners disappearing with investors’ money are not uncommon, leaving investors in a lurch. Double or triple selling of the same plot or file by unscrupulous developers causes disputes among owners, often taking years to resolve. Some developers collude with government authorities, influencing decisions and manipulating property markets.
Developers sometimes orchestrate artificial fluctuations in property prices, creating opportunities for themselves and their associates to benefit. Amir Chaudhry, a property dealer, points out the absence of checks and balances, asserting that these practices persist due to weak legislation in the real estate sector.
The recovery, cancellation, and surcharge policies implemented by societies’ owners extract billions from people, exacerbating the deprivation and depression felt by investors and end-users. The existing problems demand a dedicated regulatory authority, similar to NEPRA, OGRA, or NADRA, to manage and oversee developers’ activities.
This proposed authority should have the power to rationalize plot prices, monitor land purchasing rates, regulate development charges, ensure timely project completion, and safeguard investors’ interests. Additionally, it should have the authority to recover investors’ money by selling a developer’s assets if they fail to deliver projects on time.
Small investors appeal to the government to prioritize this issue, creating a regulatory body to protect the interests of the common man. While not all housing societies engage in exploitative practices, the call for regulation is essential to curb the predatory actions of money-hungry property tycoons, ultimately safeguarding the vulnerable and ensuring fair practices in the real estate sector.
