Lanco Infratech has lost about 250 customers for its luxurious residential apartments. In the wake of the market meltdown, the customers, mostly expatriates, have cancelled their bookings even after paying large booking amounts and instalments for the apartments Lanco is building in Hyderabad, a business daily reported.
According to its chief financial officer Suresh Kumar, the company is going slow on its planned residential project in Chennai. “We have been maintaining (that) … real estate is going towards a significant crunch... NRIs are actually cutting down on their commitments on real estate… We have seen cancellations in the last quarter as well. We were earlier at around 1,100 (bookings), now we have close to about 850-900,” Kumar told a gathering at the company’s last investor conference.
Kumar said customers had withdrawn from the project after paying up to Rs 70 lakh of the Rs 1.5 crore payable during construction. Kumar claimed that Lanco had refunded all of the customers’ money barring Rs 25,000 per booking.
Lanco chairman L Madhusudhan Rao said: “Investors are looking at builders’ confidence. We have targeted a deadline of March 2010 for our residential projects. We will showcase our confidence… by completing the project on time.”
The Hyderabad project, called Lanco Hills, is spread over 100 acres and will cost Rs 5,500 crore. It will have 15 residential towers, special economic zones and commercial properties.
source : http://exchange4medianews.blogspot.com/
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