Stern directive to two builders for delay in Gurugram project delivery

With an objective of making real estate transactions transparent and developers more accountable, the RERA was expected to prove a boon for the homebuyers. This became evident in a recent case in Gurugram, Haryana, where two developers had failed to deliver their project on time. The Gurugram arm of the Haryana RERA came down heavily upon the developers thereby restoring the faith of the buyers and sending a warning signal to the entire developer community.

In a first of its kind order in the country under RERA, the Haryana Real Estate Regulatory Authority has issued stringent directions to two builders for inordinate delay in delivery of a project in Gurugram.

The project Greenopolis in Sector 89, being undertaken by Orris Infrastructure and Three-C Shelters, was supposed to have been completed by December-2015 and apartments delivered to buyers thereof.

On a complaint filed by the Greenopolis Buyers Welfare Association, HARERA Gurugram on July 23 passed the landmark order directing both the developers to: 1 register the project within 15 days from the date of issue of the order and 2 restrained Orris from alienation/creation of any kind of rights, encumbrance, sale, transfer etc on remaining land & FAR of 82,258 sq mtrs available on 10 acres of prime land.

The HARERA also ordered financial due diligence with respect to financial aspect of the project by appointing an independent financial auditor of international repute. It also appointed an independent quantity surveyor of international repute for due diligence with respect to physical status of the project.

Venket Rao, Founder INTYGRAT

“It probably, would be for the first time any of the RERA Authorities in the country is trying to address the plight of homebuyers in a stuck project in a comprehensive manner”.

The authority constituted a committee headed by Senior Town Planner (STP) with counsels of parties and technical staff of STP as it members.  The financial auditor and quantity surveyor have been asked to submit their due diligence report to the Committee within three months. Thereafter, within one month the committee is required to suggest solution with regard to completion of the project.

A press release said the project was started around 2011 on a total area of 47.2 acres comprising 38 towers with approximately 2,500 apartments. In the initial launch, the developers launched 29 towers over 37 acres of land comprising approx 1,862 apartments. The completed apartments were to be handed over in three phases. The remaining nine towers on the remaining 10 acres land were to be constructed as per the approved building plan in subsequent phases.

The developers, said the release, collected over Rs 1,100 crore from around 1,800 buyers. The buyers had paid 90 per cent of the sale price. However, the project went into oblivion for past few years forcing buyers to approach HARERA.

• The project Greenopolis in Sector 89, being undertaken by Orris Infrastructure and Three-C Shelters, was supposed to have been completed by December-2015 and apartments delivered to buyers thereof.  
• The HARERA ordered financial due diligence with respect to financial aspect of the project by appointing an independent financial auditor of international repute.
• The authority constituted a committee headed by STP. The financial auditor and quantity surveyor have been asked to submit their due diligence report to the committee within three months.
• The project was started around 2011 on a total area of 47.2 acres comprising 38 towers with approximately 2,500 apartments. In the initial launch, the developers launched 29 towers over 37 acres of land.
• The developers collected over Rs 1,100 crore from around 1,800 buyers. The buyers had paid 90 per cent of the sale price. However, the project went into oblivion for past few years forcing buyers to approach HARERA.

Venket Rao (Founder INTYGRAT), who appeared on behalf of Greenpolis Buyers Association, said, ‘It’s a first of its kind order under RERA in the country. We are very glad that HARERA has accepted our plea for stay and due diligence. It is also the first step towards a solution, as substantial value subsists in the project and balance land which can be leveraged for completion of the project. It probably, would be for the first time any of the RERA Authorities in the country is trying to address the plight of homebuyers in a stuck project in a comprehensive manner”.