Godrej Properties compensates with buyback offer in luxury residential Godrej Summit

A prominent name of real estate industry, Godrej properties is offering buyback offer in a residential project in Gurugram after few flaws were detected in the construction quality of the project named Godrej Summit.

The Executive Chairperson, Godrej Properties Ltd, Pirojsha Godrej said in a statement, "We hope to complete the repairs by the end of this calendar year. As of now, we have had about 10 percent of the customers opt for the buyback option, so we bought back a little over 100 apartments so far. We expect to see that go to about 200 over the next few months based on current visibility."

The project named Godrej Summit is consisted of 1,100 residential units housed in 11 towers. During the August 2023, the company has announced that it would spend up to Rs. 155 crore for the repair work. Simultaneously, it also has announced a buyback for those wanting to exit the project.

Godrej Properties had appointed an external expert to undertake a detailed independent assessment of quality issues discovered in the project. The company had said in a regulatory filing in 2023, that after a vigorous round of assessment and scanning, they have found the presence of chloride in the concrete which when in contact with water, leads to corrosion of steel reinforcement.

Followed by this assessment, the company had said that it provisioned an estimated amount of Rs. 155 crore towards repair, maintenance, customer claims, or any ancillary costs. They also added that, it will, in turn, claim indemnity from the contractors involved in the construction.

According to the information by the company, the repair work is going on with full strength and it is expected to be end by the end of this year. Out of the sum announced for repair work, the company has spent around Rs. 20 to 25 crore.

According to the official statement of Godrej, “We will spend Rs. 100 crore to Rs. 200 crore for the buyback. We will be able to fully recover the money spent because we can resell the apartments once the repairs are completed. They had already spent Rs. 50-odd crore for the buyback of 60 apartments.

The company also added, “We are paying the offer basis at the time of announcement of the last average price for the apartment sold in Godrej Summit or the purchase price for the owner which is over higher out of those two. The average price starts about 6,000 rupees a square foot of the buyback and so far.

Through several media interactions the homebuyers of Godrej Summit  told that they are not happy as they are paying interest for no reason, and for that, they are demanding besides buyback offers they should pay the interest also. They also told that, the repairing work is going at very slow pace. they also told that, the developer has not yet provided them with the structural safety audit report of the towers, which was conducted by IIT Delhi. Earlier they fixed the deadline of November 2023, which was shifted to June 2024, but very recently, they have extended it till December 2024.

The company said, they are committed to completing the works at Godrej Summit at the earliest possible and have deployed more than 200 labourers at the site for the same. They are working in the right earnest to deliver on their promise towards their dedicated customers.