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DLF offers exit option to protesting buyers in Gurgaon

April 11, 2009: DLF, the country’s biggest real estate developer, has offered an exit option to its customers of the New Town Heights project, Gurgaon, as protests mount, reports Business Standard.

According to the report, the move to offer irate customers an exit option comes a few days after the company announced a 20 per cent discount on the apartments for both existing as well as new customers, through a complex structure. The discount, however, did not allow customers to exit at a future date. The concessions were offered on March 25.

According to an e-mail sent by Valsala, executive director (marketing): Unhappy customers of the project can exercise “exit option”. However, refunds to the members would be available only after DLF is able to “retrade” the property, or earliest by six months, if the company fails to sell the property, the company informed the customers.

“We would also like to clarify that we shall not be doing any further concessions/discounts, of whatsoever nature,’’ the mail informed the customers.

“We have done our best by doing all the above, to keep you happy and satisfied in the project, and are also doing our best to start the construction within a month’s time positively,” DLF informed its customers.

Meanwhile, around 300 home buyers at the Gurgaon project are planning to submit exit letters. They will submit the letters with flower bouquets to express “disappointment” in slow execution of the project, according to a member of the New Town Heights Group formed on Yahoo!, the report said.

New Town Heights, a residential project of DLF at Gurgaon, was launched in March last year as a mid-range housing project, with apartments selling in the range of Rs 45-75 lakh. The project has around 3,300 apartments, of which around 90 per cent have been sold.

The member of the group, which claimed to have the support of around 700 home buyers in the project, said a recent poll among the members showed that over 70 per cent of them wanted refund, as DLF had not started any construction work at the project site. The member noted most of the customers had paid around 42.5 per cent of the total money, it said.

DLF is also facing a similar problem at its Garden City project in Chennai and has agreed to refund the booking amount in between April 30 and September 30, 2009, for those who have submitted their exit letters.

DLF Garden City, launched in January 2008, has around 3,493 apartments and was priced between Rs 31 and Rs 39 lakh, but the company has slashed prices by 10-18 per cent.