This post is a case digest on Haryana RERA Panchkula Complaint against Samar Estates wherein the project was standstill and no longer near completion. Keeping in the interest of allottees the Haryana RERA Panchkula Authority order State Government and Town Country Planning and Department to see feasibility if they can take over the project and complete it in the larger interest of allottees. Also the builder violated the terms of RERA Registration and show cause notice was issued to them.
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Let’s have the judgment.
Judgement digest
Name of case – HRERA Panchkula v Samar estates
Date of hearing -28.01.2020
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Facts- The facts of the case were such that the respondent promoters in the present case had started a project consisting of 24 towers with 925 apartments, out of which 464 apartments had been sold. The Authority had been assured by the respondents at the time of registration that phase I of the project will be completed by December 2018 and phase two by March 2019. It was observed in this present order that for the last one year no significant progress or even a start had been made on the aforementioned project. Nor was any investment made by the promoter regarding the project and nor did not appear that he had any plan of doing so. Therefore it was observed by the present authority that the promoter had severely defaulted on its various obligations and it had also violated even the conditions of registration.
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It was further observed that the promoter had carried on the construction of the project not according to the way as it was prescribed in the sale agreements. And the promoters had raised finances from financial institutions and banks, the non repayment of which would result into a severe piling up of interests.
It was observed by the authority that in view of all the above-mentioned circumstances or was highly unlikely that the promoter would be able to successfully complete the project and deliver it to the allottees. Also, in accordance with section 8 of the RERA Act, efforts were made by the authority to constitute an association of allottees which would take over the project and complete it as much as it could. But this option of constituting an association of allottees was found to be impossible as the allottees had expressed their inability to come together and form carry out such an association.
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The other option that was explored by the present was that of handing over the project to the Town and Country planning department of the State Government to see if they could take over the project and complete or to they beat off their ability but the aforementioned authority had flatly denied the responsibility of the aforementioned project.
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Finally the authority deemed that even though the financial institutions had agreements concerning the project with the developers, the allottee’s rights over the present project was superior to that of the financial institutions therefore the allottees is the project shall be deemed as the owners of the projects and that the rights of the allottees of the project were to be treated as superior than any other’s rights over the project.
It was also decided that of the claims of the allottees are not fully satisfied from the project in question, the allottees shall be treated as creditors of the promoted and in par with other creditors.
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Order- The authority decided to issue a show cause notice to the respondent promoter asking as to why their registration be not cancelled for the reason of violation of the conditions of registration.
Also, keeping in mind the overall welfare of the allottees, the authority also requested the Town and Country planning department to consider taking over and completing the project at their own level.
The authority also ordered the suspension of the registration no HRERA-PKL-PKL-54-2018 and restrained the respondent-promoter from seeking any apartment or any asset of the project in question.
For case specific advice, please contact best top expert Haryana RERA Panchkula Lawyers Advocates who can file your case and assist accordingly for delay in possession or seeking refund from the project along with interest. The same may be said for State-consumer-Disputes-Redressal-Commission-Haryana-Panchkula
This post is written by Kaustubh Kulkarni. More on 7888-356908.
