TCP dept duty-bound to ensure completion of licensed projects

PANCHKULA: Directing the Haryana town and country planning (TCP) department to get completed an unfinished Faridabadbased project, the Haryana Real Estate Regulatory Authority (HRERA-Panchkula) has held that being the project licensing authority in the state, TCP is duty-bound ensure completion of a licensed project as allottees purchase apartments on the basis of sovereign assurances held out to them by it.

In the order that came with far reaching implications, the authority held, “The Director, TCP Department, Haryana is duty-bound to protect the interests of the allottees and to ensure that the project on the licensed land is completed in accordance with sanctioned plans. Director shall immediately take steps to take over the project and get it completed in the manner considered appropriate.”

The takeover can be done regardless of any other proceedings pending against the project assets under different Acts.

The authority observed, “The allottee, on the strength of licence and sovereign assurances, is given a confidence that his money is safe and the state takes responsibility to safeguard his interest. It is this base and theory on which the entire economic system of the country rests.

This confidence of the public and ordinary citizens cannot be allowed to erode, otherwise it will have disastrous economic and social consequences.”

The order comes in the case of Gurbaksh Singh versus ABW Infrastructure Pvt Ltd case.

In the case, Gateway Project allottees approached the authority against developers for violation of terms of the buyer’s agreement.

After developers defaulted on loan repayments, the Faridabad district magistrate attached the project property in December 2017, and allowed the loaner to take possession.

Parallel proceedings are also going on under the Haryana Protection of Interest of Depositors in the Financial Establishment Act, 2013.

BUYERS ARE DEEMED PROJECT OWNERS, HAVING SUPERIOR RIGHTS OVER PROJECTS ASSETS THAN OTHER CREDITORS, SAYS AUTHORITY