Haryana real estate regulator asks Vatika to refund homebuyers’ money

The Gurugram bench of the Haryana real estate regulatory authority (HRERA) has ordered Vatika Limited to refund money with interest to all 28 allottees of its housing project which the developer has abandoned.

The HRERA court had issued the order on October 28 while hearing the petition related to Vatika Turning Point, a residential project in Sector 88B.

The court said that the promoter Vatika will also have to pay the loan amount to respective banks in case an allottee has borrowed from bank.

“Since the project has been abandoned by the promoter, the allottees are entitled for the refund of the amount paid by them to the promoter against the allotment of their units with interest at the prescribed rate of 10.25 per cent per annum from the date of each payment till the date of actual realisation within the timelines as prescribed under the rule 16 of the Rules 2017,” said the RERA court.

The court said, “However, while depositing sale consideration of the allotted units, some of the allottees raised loans from the different financial institutions and the same was paid to the promoter.

“While refunding the amount deposited by the allottees who raised loans against the allotted units, the promoter would be liable to pay that amount with interest up to date to those financial institutions and remainder, if any, would be paid back to the allottees.” Vatika Limited had obtained licence from the Department of Town and Country Planning (DTCP) in 2013 to develop group housing project Turning Point.

The court observed, “Though, the due date for completion of the project and offer of possession of the allotted units was mentioned as validity of registration certificate being September 15, 2025, but after expiry of more than four years from the booking there is no physical work progress at the site except for some digging work.” The court also observed that the promoter failed to file quarterly reports giving status of work progress required under section 11 of Act 2016.

So keeping in view all these facts, 28 allottees of the project approached the authority seeking refunds.

The authority directed the enquiry officer to report about the compliances of the obligations by the promoter regarding the project, specifically with regard to 70 per cent of amount collected from allottees minus the proportionate land cost and construction cost whether deposited in a separate RERA account as per requirement of the Act of 2016 and Rule 2017.

The enquiry report mentioned, “There is hardly any progress regarding development such as construction on site.” K K Khandelwal, RERA chairman, said, “Such offences are unacceptable. The promoters cannot take allottees for granted after realising their hard earned money. RERA has to act as per the law and ensure allottees’ money is safe and they get also compensation for mental trouble.” PTI CORR HVA

Source: https://theprint.in/india/haryana-real-estate-regulator-asks-vatika-to-refund-homebuyers-money/1202678/

RERA, Gurugram, has directed the builders to refund homebuyers money in 90 days along with 9.70 % interest following their failure to give possession of apartments and plots in a stipulated time period.

RERA orders 23 builders to refund money to 63 buyers

The Real Estate Regulatory Authority (RERA), Gurugram, has directed the builders to refund homebuyers money in 90 days along with 9.70 % interest following their failure to give possession of apartments and plots in a stipulated time period.

The RERA orders have come in the wake of multiple complaints from the Gurugram-based homebuyers who after losing their hopes to have their units had petitioned RERA seeking a refund of the amount they had paid to builders.

“The authority has ordered to refund deposited amounts to homebuyers after hearing both the parties (builders and allottee) and on finding builders guilty for non-delivery of units as per builder buyer agreements. The builders should not take homebuyers for granted,” KK Khandelwal, RERA chairman, said in a release.

“The builders failed to complete the projects and deliver the promised units to homebuyers within stipulated time even after collecting good initial amounts,” said Khandelwal.

He said in July alone nearly 300 matters were listed before the authority for adjudication. In the 63 cases, the authority adjudicated the matter allowing a refund with interest at the rate of 9.70%. These adjudications pertain to 17 builders and the refund amount is close to ₹50 crore.

The authority has said in case the builders don’t follow the order, the complainant can approach the adjudicating authority for execution of orders.

In another 15 matters, the authority has ordered a refund after a deduction of 10% earnest money. In all 300 matters, the homebuyers largely wanted a refund and that shows the callous attitude of promoters, the authority has observed.

Khandelwal said the authority gets hundreds of complaints on a daily basis in which mostly buyers want a refund or delayed interest.

Source: https://www.hindustantimes.com/cities/chandigarh-news/rera-orders-23-builders-to-refund-money-to-63-buyers-101658442377351.html

Haryana RERA orders Forensic Audit of 5 Affordable Housing Projects

The Haryana Real Estate Regulatory Authority (H-Rera) has ordered forensic audits of all five affordable housing projects by developer Mahira Group in sectors 63, 68, 95, 103 and 104.

The move comes after reports on alleged gross irregularities by the developer in procuring licences for these projects.

The department of town and country planning (DTCP) blacklisted the company, its directors and shareholders last month.

According to a DTCP order, the developer fabricated bank guarantees and forged signatures of bank officials on the documents submitted to the department for procuring the licences of its affordable housing projects.

Now, H-Rera has appointed an executive monitoring engineer to conduct the probe and directed Mahira to submit documents.

In an order, KK Khandelwal, the chief of the Gurugram H-Rera bench, said his officials visited the sites of these projects and submitted a report about their progress and the physical status of construction.

The report claimed that the construction at site doesn’t seem commensurate with the payments collected from buyers and the developer didn’t submit quarterly progress reports of the projects as well.

Taking action on the complaints, the authority directed the company to furnish details including total amount collected from allottees so far, work done on site, bank accounts where the payments were received, withdrawal from the accounts and annual audit reports of last two financial years within seven days (June 6).

The replies submitted by the developer, however, were found to be not in order, so H-Rera on May 28 restrained the promoter from withdrawing from the project account and from creating any third-party rights by way of mortgage/loan.

“The authority further ordered forensic audit of the project account and fixed audit fees of Rs 50,000 to be paid by the developer and appointed Rera executive monitoring engineer JS Sindhu for conducting the enquiry. The authority further directed the developer to produce books of accounts and documents related to loans, funds diverted to other accounts, allotment of units, amount collected from the allottees from sale of units and other related documents required by the enquiry officer,” said an official. Despite efforts by TOI, the developer could not be reached and its office did not respond to calls and messages.

Source: https://timesofindia.indiatimes.com/city/gurgaon/haryana-rera-orders-forensic-audit-of-5-affordable-housing-projects/articleshow/92242191.cms?from=mdr

With the Haryana Real Estate Regulatory Authority linking a memorandum of understanding(MoU) with the technology firm Jupitice Justice technologies for digitalization of complaint redress system.

Soon, Rera to kick off digital court for redress of disputes

With the Haryana Real Estate Regulatory Authority (H-Rera) inking a memorandum of understanding (MoU) with technology firm Jupitice Justice Technologies on Thursday for digitalization of complaint redress system, aggrieved homebuyers can hope for a quicker resolution of disputes with developers.

The Chandigarh-based company, officials said, will design and develop a digital Rera court to enable all its stakeholders to execute and perform end-to-end Dispute Resolution Mechanism (DRM) online from the comfort of their home or office. KK Khandelwal, the chairman of H-Rera, Gurgaon, said the company will offer technical expertise to the authority to facilitate dispute resolution and delivery of justice in a simpler, quicker, safer and transparent manner under the pilot project.

“The authority will use the digital court to conduct end-to-end proceedings for easy and effective dispute resolution for the disputants and other stakeholders involved in the process,” Khandelwal said, adding that the user will be provided with end-to-end abilities to plead and conduct all proceedings under the quasi-judicial mechanism, from filing disputes to decision making, all the platform.

Another H-Rera official said the pandemic has speeded the adoption of digital technologies in the past couple of years. “Now, the consumers need not visit the Rera office for their case proceedings,” Khandelwal added.

Raman Aggarwal, the founder and CEO of Jupitice Justice Technologies, said with this partnership, the authority can support large, scalable and evolving needs of the complainants/disputants in the real estate industry for enhanced access, quick and inexpensive settlement of commercial disputes by leveraging new age technologies, such as artificial intelligence (AI) and Blockchain. The digital Rera court, Aggarwal said, will also support AI-enabled self-representation, while all the useful documents related to respective cases will be secured through the Blockchain-enabled digital locker.

Source: https://timesofindia.indiatimes.com/city/gurgaon/soon-rera-to-kick-off-digital-court-for-redress-of-disputes/articleshow/89027375.cms

Haryana Real Estate Regulatory Authority fines 3 developers Rs 4 crore for ‘illegal advertising.

H-Rera fines 3 developers Rs 4 crore for ‘illegal advertising’

Taking suo motu cognisance of ‘illegal Gurgaon: Taking suo motu cognisance of ‘illegal advertising’ of unregistered real estate projects, the Haryana Real Estate Regulatory Authority (H-Rera) has imposed a penalty of Rs 4 crore on three developers.

H-Rera chairman KK Khandelwal said the Authority imposed a penalty of Rs 2.5 crore on M3M Pvt Ltd on Wednesday for advertising boutique floors at its project in Sector 89. An additional penalty of Rs 50 lakh was imposed on the realtor for another project, Smart World Floors in Sector 61.

“Along with this, a fine of Rs 50 lakh each was also slapped on two other developers, Smart World Developers and Suposhaa Realcon, who are M3M’s partners in the Smart World project,” he added.

TOI reached out to M3M for a comment but didn’t get a response.

Khandelwal said a malicious trend of advertising real estate projects without prior registration with the authority has been observed amongst developers. “It has been found that promoters are getting unregistered projects advertised, either directly or through agents, to lure investors,” he said.

According to the Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2017, promoters are required to register projects before advertisement, marketing or sale of any plot, apartment or building in any real estate project, the H-Rera chief said.

“The strict action of the Authority will send the right signals to erring builders and will go a long way in reposing the faith of allottees in the real estate sector. Such strict action will also act as a deterrent for the other builders who remain non-compliant towards the Act of 2016 and the directions passed by the Authority as per the provisions of the Act,” said an H-Rera official.

The H-Rera chief said these developers have been advertising their unregistered projects despite several directions. Members of the Authority, including Sameer Kumar and Vijay Kumar, took a serious view of the issue and expressed displeasure and dissatisfaction on such “unprofessional conduct” of the developers and observed that such developers should be meticulously punished for violations, Khandelwal added.

In January, H-Rera had imposed a penalty of nearly Rs 2.3 crore on three builders and ordered MCG to demolish the unauthorised structures they had built for advertising and selling projects without registering them under the Rera Act.

Source: https://timesofindia.indiatimes.com/city/gurgaon/h-rera-fines-3-developers-rs-4-crore-for-illegal-advertising/articleshow/87007240.cms

H-RERA has directed the developer to submit an affidavit by September 20 with details of the repairs done in the society to date and how the realtor plans to complete the remaining work.

Rera demands affidavit from developer on repair work

A month after the Gurgaon police registered a case against city-based Raheja Developers for poor construction quality of Raheja Vedaanta on the complaint of the department of town and country planning, the repair work at the Sector 108 residential society is far from complete. A senior town planner is supposed to monitor the repair work before a team from IIT-Delhi certifies the same.

Haryana Real Estate Regulatory Authority (H-Rera) has now directed the developer to submit an affidavit by September 20 with details of the repairs done in the society to date and how the realtor plans to complete the remaining work. The real estate regulator is of the view that sufficient time has been given to the developer, TOI has learnt.

The society’s RWA highlighted that water seepage was taking place not only from the two basement floors but also from the expansion joints on the ground floor, and the need for urgent remedial measures. On the facade of the building, the developer will have to take immediate action for interim safety like installation of safety nets.

According to the RWA, the developer tried to shift the blame on the association saying they did not maintain the structure properly. “Till now, all the infrastructural assets have not been handed over to the RWA. Even the basic structural drawings of the buildings are yet to be given to the RWA,” said Gautam Sen, president of Vedaanta RWA.

When contacted, the developer refused to comment.

Spread across 10.68 acres of land in Sector 108, the developer got a licence for the residential group housing society in 2007 from DTCP. Construction work at the project site started in 2008 and the developer started giving possession to homebuyers from 2014. The issues regarding structural issues have been raised by the residents since 2018. The DTCP got the FIR lodged against the developer in August.

Source: https://timesofindia.indiatimes.com/city/gurgaon/rera-demands-affidavit-from-developer-on-repair-work/articleshow/86129733.cms

Haryana Real Estate Regulatory Authority (HRERA), Gurugram has imposed a penalty of Rs 2.25 crore on three builders and also ordered demolition.

Haryana-Rera fines 3 builders Rs 2.25 crore, tells MCG to demolish illegal structures

Haryana Real Estate Regulatory Authority (HRERA), Gurugram has imposed a penalty of Rs 2.25 crore on three builders, besides ordering demolition by the Municipal Corporation of Gurugram of unauthorised construction. The action has been taken against the builders for advertising and selling their projects without getting them registered under the RERA Act.

The orders were passed by K K Khandelwal, chairman, HRERA, Gurgaon for violation of Section 3 (1) of the Real Estate (Regulation and Development) Act, 2016 by SPS Homes Builders and Developers, Vistaar Group and Royal Infra Buildtech. They have been asked to pay penalty of Rs 1 crore, Rs 75 lakh and Rs 50 lakh, respectively. MCG commissioner has been asked to demolish the unauthorised construction.

The main allegation against these builders was that they were advertising/marketing and selling apartments in their projects; SPS Homes (Sector 30), Saffron Homes (Sector 67) and Royal Homes (Sector 39) respectively through online portals and indulging in unauthorised construction.

The Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2017, states that promoters are required to register the project before advertisement/marketing/selling of any plot, apartment or building, as the case may be, in any real estate project.

The authority had taken serious view of the malpractices being carried out by promoters without getting their real estate projects registered with H-Rera, Gurugram.

“Strict action of the authority will send the right signal to errant builders and go a long way in reposing faith of the allottees. Such strict action will also act as a deterrent for other builders who remain non-compliant towards the Act and the directions passed by the authority ,” said an official.

The RERA Act was enacted for regulation and promotion of the real estate sector and to ensure sale in an efficient and transparent manner to protect the interests of consumers.

Source: https://timesofindia.indiatimes.com/city/gurgaon/h-rera-fines-3-builders-rs-2-25cr-tells-mcg-to-demolish-illegal-structures/articleshow/80519339.cms

Haryana RERA penalises several realtors for malpractices

Chandigarh

Acting tough, the Haryana Real Estate Regulatory Authority has penalised several colonisers for indulging in malpractices.

The RERA bench, headed by its Chairman K.K. Khandelwal and member S.C. Kush, on Tuesday took action against the promoters of various companies in the wake of complaints by allottees.

In proceedings against CHD Developers, Ireo Private Ltd, Landmark Apartments Private Ltd, Siddhartha Buildhome Private Ltd, Vatika Ltd, Tashee Land Developers Private Ltd and Tulsiani Constructions and Developers Private Ltd, it ordered attachment of the bank accounts to the extent of Rs 7 crore along with the movable properties of their directors.

An order has been given to issue a bailable warrant against the directors of Prime Time Infra Projects Private Ltd for not complying with the orders of the authority.

During the hearing pertaining to execution petitions, the authority observed that Clarion Properties Ltd has committed a gross violation of Section 3 of the Act by not registering its project with the authority.

It directed to issue a show-cause notice against the developer for non-registration of project under Section 59, which states that “the promoter shall be liable to a penalty up to 10 per cent of the estimated cost of the real estate project” and if the promoter continues to violate the provisions of Section 3, he shall be punishable with imprisonment for a term up to three years or with fine further up to 10 per cent of the estimated cost of real estate project, or with both.

Stringent action has been taken against the promoter in the complaints against Supertech Ltd, with the authority ordering it to pay Rs 5 crore to the allottee for delay in handing over of possession by the promoter.

A hefty cost of Rs 130,000 was imposed on Supertech Ltd for not filing reply within the stipulated time and the fine has been paid, which will be disbursed to the allottees.

Khandelwal, in a statement, said that such actions against the defaulting promoters would not only help providing an environment of growth and development of the real estate sector but would also assist the allottees in gaining and preserving their trust in the authority for quick redressal.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/haryana-rera-penalises-several-realtors-for-malpractices/78914563

No new projects if old ones pending: Haryana-Rera

The Gurugram bench of Haryana Rera on Friday issued a notice to blacklist and debar a real estate company, Empire Realtech, and its promoter CHD Developers from launching any new project till ongoing ones are completed. It’s the first time the regulator has taken such a tough measure as delays in delivery of homes have turned into a chronic problem both in the city and other parts of NCR’s struggling but massive real estate sector.

CHD Developers had launched a housing project under Empire Realtech in 2011 – 106, Golf Avenue in Sector 106 – with a promise to offer possession by December 2016. The homes have, however, not been delivered yet. The promoter intimated the revised date for completion to H-Rera as June 30, 2021 at the time of registration in 2016. “But keeping in view the present situation of funds and stage of construction, there is every likelihood of further delay of the project,” observed the bench comprising chairman KK Khandelwal and members SC Kush and Samir Kumar while deciding to issue a notice asking why the company should not be blacklisted and debarred from launching new projects till it completes existing ones.

“The quarterly progress reports have not been submitted by the developers (as required under Rera rules) either,” Khandelwal said. The notice asks why penal proceedings should not be initiated and a penalty that may be up to 5% (Rs 28 crore) of the project cost should not be 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 on taking over the project for its completion,” Khandelwal added.

There are 642 units in the project, of which 600 have been sold. Nearly Rs 500 crore has been collected from homebuyers. The promoter has also taken a loan of Rs 150 crore, of which Rs 36 crore is outstanding. The bench said since the promoter had not opened a separate Rera account for the project, instalments paid by homebuyers were received in the bank’s escrow account, and the money deposited in the account was taken away by the lender against the loan. Consequently, there were no funds left for construction.

Source: https://timesofindia.indiatimes.com/city/gurgaon/h-rera-serves-first-debarment-notice-toughens-stance-on-housing-delays/articleshow/78836639.cms

Coronavirus pandemic | UP RERA, MahaRERA adjourn hearings until March 31

With the coronavirus outbreak causing major disruptions, the Uttar Pradesh RERA and MahaRERA on March 17 said they have decided to adjourn the hearing of all complaints until March 31.

“Due to the coronavirus pandemic, UP RERA has decided to adjourn the hearing of all complaints listed between March 18 to March 31, 2020, both at the Lucknow headquarters and the NCR regional offices,” UP RERA said in a public notice.

Rescheduled dates would be communicated soon, it said.

Homebuyers and real estate developers wanting to list urgent matters may write to Secretary, UP RERA, at contactuprera@up-rera.in, it said.

UP RERA will again review the situation at the end of the month before deciding to resume the court, it said.

MahaRERA also said in a public notice that all cases before it and the adjudicating officer shall be adjourned until March 31.

RERA Bihar has also decided to postpone all hearings of cases scheduled from March 16 to March 31, 2020, it said in a public notice on its website.

“Haryana RERA has also decided to postpone the hearing of all cases from March 18 until March 31, 2020, Dilbag Singh Sihag, member HRERA, Panchkula told Moneycontrol.

“The project/agent registration process is completely online. MahaRERA staff is allowed to work from home till further orders,” the notice said.

Real Estate (Regulation & Development) Act, 2016 (RERA) came into effect from May 1, 2017, and Maharashtra was the first state to implement it by setting up MahaRera. Midwifed by two governments – UPA II and the NDA II – between 2009 and 2016, the legislation was necessitated by the growing misery of tens of thousands of harried homebuyers.

Source: https://www.moneycontrol.com/news/business/real-estate/coronavirus-pandemic-up-rera-maharera-adjourn-hearings-until-march-31-5042981.html