MOVES COURT AFTER PAYING 30 LAKH, YET DENIED POSSESSION OF ALLOTTED FLAT, ALLEGES ADMINISTRATIVE COMPLICITY AS LAND REGISTERED TO THIRD PARTY DESPITE STAY
Face2News/Chandigarh
A shocking case of alleged real estate fraud has emerged in Mohali, where a resident, Darshan Singh, has approached the Permanent Lok Adalat against Smarb Homes Pvt. Ltd. and its associated companies for failing to hand over possession of his allotted flat despite receiving the majority of the payment. Singh, who addressed the media today, accused the promoters of the project of not only withholding his property but also sold the same land to another party.
Speaking at the press conference held at Chandigarh Press Club today, the petitioner said, “I booked a 3BHK flat in Smarb Homes, Sector 91, Mohali, and paid Rs 30 lakh out of the total Rs 36 lakh. Yet, to this day, I have not received possession. Instead, the promoters have tried to resell the land and even issued me a cheque of Rs 45 lakh, which bounced. This is nothing less than cheating and harassment.”
Darshan Singh further alleged that elements of the administration were complicit in the fraud, claiming that the Tehsil officials namely Harjot Singh Sub registrar and Harsh Garg joint sub registrar registered the disputed land in a third party’s name despite a stay order. He was joined at the press conference by three other aggrieved buyers - Jasbir Singh, Naresh Kumar, and Manjeet Singh - who also shared their grievances before the media.
According to court filings, Singh booked Flat No. B-402 (3BHK), Smarb Homes, Sector-91, Mohali, based on an allotment letter dated August 18, 2020. The total cost was fixed at Rs 36 lakh, of which Singh paid Rs 30 lakh through a combination of cash, account transfers, and NEFT transactions between July and August 2020. The remaining Rs 6 lakh was to be settled at the time of possession and registration.
The petition, filed under Section 22-C of the Legal Services Authority Act, 1987, contends that the matter falls within the ambit of public utility services (housing). Singh’s counsel, Advocates H.S. Pannu and Gayanpavit Singh, stated that the case is well within the jurisdiction of the Permanent Lok Adalat, SAS Nagar, and reflects a classic example of deficiency of service and fraudulent intent on the part of developers.
The project was launched under a joint venture between K.C. Land & Finance Ltd. and Smarb Creations India Ltd., which later floated Smarb Homes Pvt. Ltd. for the housing scheme. Singh alleges that after collecting payments, the project was abruptly halted, and despite repeated requests, neither the sale deed was executed nor the flat was handed over.
The petitioner’s case details that in July 2022, Smarb Homes’ director Satinder Pal Singh issued him a cheque of Rs 45 lakh in a purported settlement, which subsequently bounced, deepening suspicions of fraud. Singh also lodged an FIR (No. 0312 dated August 14, 2023) against one of the directors for cheating. Most recently, in June 2025, Singh claims he discovered attempts by the respondents to sell off the land underneath the project to other buyers, forcing him to rush to the Registrar’s office and file the present petition.
Through his application, Singh has requested the Hon’ble Court to direct the respondents to hand over possession of Flat No. B-402 after accepting the balance Rs 6 lakh; issue a stay restraining the promoters from selling the disputed property to third parties; and award him compensation for mental agony and harassment, along with litigation costs of Rs 1 lakh.
The petition, filed under Section 22-C of the Legal Services Authority Act, 1987, contends that the matter falls within the ambit of public utility services (housing). Singh’s counsel, Advocates H.S. Pannu and Gayanpavit Singh, stated that the case is well within the jurisdiction of the Permanent Lok Adalat, SAS Nagar, and reflects a classic example of deficiency of service and fraudulent intent on the part of developers.
Darshan Singh summed up with an appeal for justice, saying, “I have been fighting this battle for nearly five years. My life savings are stuck. I urge the authorities to act firmly against such fraudulent builders so that no other family suffers like mine.”
The matter is now pending before the Hon’ble Court, which will decide whether the promoters must deliver the flat, compensate the buyer, and face legal consequences and enquiry should be conduct by CBI and strict action should be taken against the officials of Mohali Tehsil.