Haryana

HARERA GURUGRAM BARRED EMPIRE REALTECH, CHANDIGARH DEVELOPERS TILL COMPLETION ON ONGOING PROJECTS

October 23, 2020 05:14 PM

HARYANA GOVT. TOOKS TOUGH ON BUILDERS DELAYING ONGOING PROJECTS

Chandigarh (Face2News)

For the first time in a unique and trendsetting decision, HARERA, Gurugram has sent notice to M/s Empire Realtech Pvt. Ltd. to black list the builder along with associated company M/s CHD Developers and debar them from further registration of new projects till ongoing projects are completed.

While stating this today, Chairman, HARERA, Gurugram Dr K.K. Khandelwal said that notice was also issued to face cancellation of registration of project or to complete the project and hand over possession to the allottees. There is likelihood of syphoning off/ diversion of funds of the project which would have been used for construction but have been used otherwise, he added.

Enumerating details of the case, he said that M/s Empire Realtech Pvt. Ltd. launched a project “106 Golf Avenue, Sector – 106, Gurugram” in the year 2011 and possession of the apartment was to be given by December 2016 but even after 4 years of delay the buyers are running pillar to post for their apartments. The promoter intimated revised date for completion of the project to RERA as June 30, 2021. But, keeping in view the present situation of funds and stage of construction there is every likelihood of further delay of project. The bench comprising Dr. K.K. Khandelwal Chairman, HARERA, GGM, Mr. S.C. Kush and Mr. Samir Kumar Members of the HRERA, Gurugram decided to issue notice as to why requisite progress in the project is not being achieved by the promoter.

Dr Khandelwal said that quarterly progress reports have not been submitted by the promoter. There are 642 units in the project out of which 600 units have been sold. Nearly Rs 500 crore have been collected from the allottees as far back as year 2016. He said that the promoter has also taken loan of around Rs 150 crore out of which Rs 36 crore are still outstanding. Despite availability of funds both from allottees as well as lenders the project is far from completion, he added.

Dr Khandelwal said that quarterly progress reports have not been submitted by the promoter. There are 642 units in the project out of which 600 units have been sold. Nearly Rs 500 crore have been collected from the allottees as far back as year 2016. He said that the promoter has also taken loan of around Rs 150 crore out of which Rs 36 crore are still outstanding. Despite availability of funds both from allottees as well as lenders the project is far from completion, he added.

He said that there are 9 towers in the project and in only 3 towers, 80 per cent work has been completed whereas in the remaining towers less than 80 per cent work has been done. He said that the construction is stuck up from October 2018. The allottees are very much disturbed as even after payment of 90 per cent of the cost of the apartment, there is no possibility of taking possession of the unit in near future. It seems that funds have been syphoned off by the promoter as even after receiving more than Rs 600 crore from the allottees and lending institutions only Rs 168 crore have been incurred on the construction.

Dr Khandelwal further said that the authority decided to order forensic audit of the project account so that if there is any misutilisation of funds or syphoning off of the funds the same can be brought back to the project for completion of construction. The meeting of the association of allottees was called along with the promoter and the mitigation plan for completion of project was discussed at length.

He said that the promoter has not opened a separate RERA account of the project. Allottees installments were received in the Escrow Account of the bank and all money deposited there in was taken away by the lender and nothing left for construction whereas 70 per cent amount should have been deposited in separate RERA account to be used only for construction. This is a clear violation of Section 4 of the Real Estate (Regulation and Development) Act, 2016 and warrants penal proceedings under section 60 of the Act against the promoter.

He said that notice has been issued to the promoter as to why penal proceedings be not initiated and a penalty which may go upto 5 percent of the cost of the project that is Rs. 28.38 crore be not imposed. The promoter has been asked to submit a mitigation plan for completion of the project within a month in consultation with the association of allottees. The authority has also given an option to the association of allottees whether they are willing to take over the project for its completion.

Dr Khandelwal said that the promoter has done gross violation of conditions of the registration by not achieving the requisite progress on quarterly basis so that the date mentioned for completion of the project at the time of registration is achieved. The association has suggested taking over the project and completing it. He said that the authority is examining the proposal of the Association. The promoter has been asked to infuse funds for completion of the project which is estimated to be Rs 104 crore. The allottees have lost their faith in the promoter and are not willing to pay any more amounts to the promoter.

He said that there are other incomplete projects of abnormally delayed possession of the same promoter like CHD Van Group Housing spread over 10 acres of land and CHD Rosertico (Commercial, 10 acres) wherein inquiry is also being ordered by the authority. These projects are also stressed project. The authority has issued show cause notice as to why promoter is not blacklisted and debarred from development of any project till completion of these projects. He said that the 600 allottees of the project 106 Golf Avenue, Sector 106, Gurugram are having sleepless nights and passing through unbearable pain and agony on account of inordinate delay in possession of their apartments even after passing of 5 years of the due date and uncertainty regarding as to when the project will be completed and whether it will be completed or not.

He said that the allottees have invested their hard-earned long-life savings in the project and are passing through pain and agony. Their frequent visits to the builder have met with deaf ears. Now the builder has been asked to come forward and discuss the project matter with the association of allottees in presence of the authority so that the present stage of the project as well as mitigation plan for completion of the project is discussed. The promoter has been asked to start construction within a week otherwise penal action will follow. The promoter has assured to start the work within this week.

Dr Khandelwal said that it is callous on the part of the promoter that he has collected an amount of external development charges from the allottees and has not paid it to the DTCP and under the garb of some High Court order. The money which has been collected from the allottees and belongs to the Government cannot be withheld by the promoter and there is every likelihood of misutilisation of funds.

He said that it is interesting that promoter has charged Rs 84 lakhs to Rs 1.5 crore per unit from the allottees which included the widows, senior citizens, retired employees both from army and civil who are not only paying EMIs to the bank but also rent to the landlords which could have been avoided if possession of their respective apartments would have been given on the due date that is somewhere around 2016. They are under the double burden of EMI and rent. Because of such a situation, some of the allottees might have made their alternative arrangements and may now not be interested in continuing with the project and seeking refund of their amount alongwith interest. The allottees are entitled for compensation with regard to the unlawful gain by the builder keeping their money and not delivering the unit, loss suffered due to non-possession, mental agony and stress gone through by them, he asserted.

 
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