Haryana RERA issues showcause notice to Gurugram-based Empire Realtech

NEW DELHI: Gurugram bench of Haryana Real Estate Regulatory Authority (HARERA) has provided a showcause notice to Empire Realtech. Besides that, they have warned to blacklist its associated company CHD Developers and barred them from registering any project till the ongoing ones are completed. It may also impose a fine of Rs 28 crore to the builders if they fail to comply.

KK Khandelwal, Chairman, HARERA, said that in the notice builder has been informed that registration of the projects will be cancelled if builder fails to complete it.

HARERA has also said that there could be diversion of funds of the project which was meant for construction.

Khandelwal further said “Empire Realtech Pvt Ltd had launched a project “106 Golf Avenue” in 2011 and possession was to be given by December 2016 but even after 4 years, the developer hasn’t offered possession”.

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, the project is likely to get delayed again,” Khandelwal added.

The builder has also not submitted the quarterly progress reports which were mandated under the RERA act.

600/642 units in the project have been sold. Besides that Rs 500 crore have been collected from the allottees and promoter has also taken loan of around Rs 150 crore out of which Rs 36 crore are still outstanding.

“Regardless of the availability of funds both from allottees as well as lenders the project is far from completion. There are 9 towers in the project and in only 3 towers, 80 per cent work has been completed whereas in the remaining towers less than 80 per cent work has been done,” Khandelwal said.

The authority has also decided to order forensic audit of the project to ascertain any misutilisation of funds.

RERA chief also said “The meeting of the association of allottees was called along with the promoter and the mitigation plan for completion of project was discussed at length. The promoter has not opened a separate RERA account of the project”.

The promoter has been asked to submit a mitigation plan for completion of the project within a month in consultation with the association of allottees. The authority has also provided an option to the association of allottees whether they are willing to take over the project for its completion.