Haryana: Real estate firm under HRERA scanner for siphoning off funds

HRERA, real estate, real estate fund, fund siphoned, indian express

The project, ‘Regency Park’ by Aarcity Builders Private Limited, is coming up in Hisar’s Sector 11 A and Sector 17 where six towers are to be constructed.

A real estate firm has come under the scanner of Haryana Real Estate Regulatory Authority (HRERA) over “possibility of siphoning off funds” of a Hisar-based project.

The project, ‘Regency Park’ by Aarcity Builders Private Limited, is coming up in Hisar’s Sector 11 A and Sector 17 where six towers are to be constructed. A couple of allottees, who had booked the flats in 2011-12, have approached the authority complaining the promoter has “stopped the construction and only a concrete structure is presently standing on the land”.

On February 27, the authority maintained that a team of auditors will visit the site from March 12 to March 20. “The promoter had mismanaged the project and he has not invested the whole amount collected from the allottees towards (the) construction of the project. A strong possibility is, therefore, spelt out about siphoning off funds by the promoter. So, the authority deems it proper to conduct a forensic audit into the account of the project,” observed HRERA chairman Rajan Gupta and member Anil Kumar Panwar in its order on January 23 after hearing both the parties.

The authority maintained that the forensic audit would be conducted in the presence of the complainants. The company has been asked to place on record complete details about the total amount collected from the allottees as well as from other sources.

 

Advocate Anurag Jain, who is representing one of the allottees, Praveer Arya, told The Sunday Express that next hearing of the case has been fixed for March 28.

The directions came after the authority observed that the allottees have paid approximately 60 per cent of the sale consideration. “. some of the complainants have prayed for refund of the amount, along with interest, while others have prayed for issuance of directions to the respondents for delivering them possession within a fixed period.”

According to the order, it has transpired that the respondent company has already collected a sum of approximately Rs 53 crore.

The company said that Rs 46.85 crore more was required to be recovered from the allottees. A representative of the company, Dinesh Kumar, told the authority “the balance construction work to be carried out for completion of the tower in question requires investment of a sum of Rs 59.68 crore”.

On the other hand, complainants said that the agreed period for delivery of possession had lapsed on April 18, 2016, and “they are, thus, entitled to delay compensation”. According to them, nothing is payable by the allottess after adjustment of the delay compensation.

After hearing the arguments of both the parties, the Bench observed, “Looking at the delay and complainants’ entitlement for claiming compensation towards such delay, the authority, prima facie, is also of the considered opinion that the amount payable by the allottees in future will be less than Rs 46 crore.”

“The respondent has fairly conceded that a loan of Rs 33 crore was obtained from a financier… going through the papers presented by the complainants, the authority find that the respondent (company) was paid only a sum of Rs 6-7 crore out of the said loan and (an) amount of Rs 18 crore… was got adjusted towards some previous liability of the respondent,” observed the Bench.

It has also come to the notice of the authority that the promoter has transferred 196 flats of the project to its sister concern Hisar Real Estate Limited “without receiving any sale consideration and the promoter has also obtained Rs 15 crore from another financier after mortgaging 129 flats of the project”.

[“source=indianexpress”]