Are prelaunch offers lawful and valid?

1. What is a pre-launch offer: -Purchasing flat from realtors before getting required approvals from the government for the project.

2. Why should we purchase flats on prelaunch offers: - the developers offer lower prices for booking their flats in advance and collect money from buyers, even without laying foundation stones to the project and processing for approvals.

3. Is there any risk involved in it? 100% risk is involved.In the following circumstances

1. The developer may misuse funds without spending on it. Government approvals may not come if conditions are not fulfilled. If the Developer is fraudulent, he will jump with the collected amounts and provide no response to buyers.

4. Middle class and below middle class,and not having real estate knowledge people are being lured by the developers by offering cheaper rates.

5.The RERA,CRDA and HUDA are having powers to take action against such Deveopers for practicing such illegal activaties.But they see the issues with closed eyes and ears for the reasons better known to everybody.

What will be the penalty for such practices if  RERA or any authority acts as per rules and regulations?

1.     5% penalty can be imposed to the Developers for delay in completion of the works some times 10% can also be imposed.

2.     3 years imprisonment can also be awarded.

Although all these rules are in place, buyers are being deceived time and again. They have to incur legal expenses, which sometimes exceed what they paid to the builders. There is no quick action by the government.

Suggestion to middle and below middle class buyers: -Should not lure to the offers , purchase full-fledged flats.