HARERA to realty firm: Stop registration of new projects

There are nine towers in Gurugram-based project and 80% work has been completed in only three towers

CHANDIGARH: Haryana Real Estate Regulatory Authority (HARERA) Gurugram has put Empire Realtech along with associated company CHD Developers on notice to blacklist and debar them from further registration of new projects until the ongoing ones are completed.

According to KK Khandelwal, chairman, HARERA, Gurugram, the realty firm has been asked to face cancellation of registration of project or to complete it and hand over possession to the allottees. “There is likelihood of siphoning off/ diversion of funds...” an official spokesperson, quoting Khandelwal, said.

He said Empire Realtech launched a project “106 Golf Avenue, Sector – 106, Gurugram” in 2011 and possession of the apartment was to be given by December 2016. However, even after four years of delay, the buyers are running from pillar to post for their apartments.

“The promoter intimated revised date for completion of the project to RERA as June 30, 2021, but, keeping in view the present situation of funds and stage of construction there is likelihood of further delay of project,” he said.

The bench comprising Khandelwal issued notice as to why requisite progress in the project is not being achieved by the promoter. Khandelwal said there are 642 units in the project out of which 600 units have been sold. Nearly ₹ 500 crore were collected from the allottees since 2016.

He said the promoter has also taken loan of around ₹150 crore out of which ₹ 36 crore is still outstanding. Despite availability of funds from both allottees as well as lenders the project is far from completion, he added.

He said there are nine towers in the project and 80% work has been completed in only three towers. Khandelwal said the construction is pending from October 2018. The allottees are very much disturbed as even after payment of 90% of the cost of apartment, there is no possibility of taking possession of the unit in near future. It seems that funds have been siphoned off by the promoter. Even after receiving more than ₹600 crore from the allottees and lending institutions, only ₹168 crore have been incurred on the construction, Khandelwal said.