In recent few days we have witnessed some strict judgements or decisions by the Courts, Authorities and Government Departments and keeping the momentum intact, the Town and Planning commission of Haryana has cancelled the license of 15 projects and took over them, the takeover involves all aspects of the projects including security deposit so that the remaining development work can be done.
The said projects are small and medium-sized projects and it includes both housing and commercial, more than 1000 buyers have stakes in these project. Out of 15 projects 9 of them are in Gurugram, Faridabad, Karnal and Hisar.
The order was given by Jitender Sihag, Chief Planner of DTCP, the official said the developers have the outstanding of External Development Charges of more than 200 crores. Now after this order the developers are barred from sale, purchase or any kind of transaction in these projects.
Having said that, the window of 60 days is also given to them to appeal. If they clear dues and remove the defects, then license can be restored and if they fail to do so then the department will seize the bank guarantee and other assets.
The aforesaid order will not affect the financial stake of the home-buyers and the government will serve their liability as promised by the builder, the government either provide the refund or possession of the property. The refund shall be paid out of the proceeds of bank guarantee and other assets.
This order hit the many projects in Gurgaon which also includes commercial complex in Sector 110, though the license for this project is valid up to August 22, 2019 but the developer could not rectify the deficiencies asked by the DTCP. The other project includes commercial colonies on 10.04 acres in sector 88, and on 2.4 acres in Sector 102 besides an affordable group housing colony in Sector 84.
All above is coming to the conclusion that in last one year we have seen a drastic evolution in our system. These steps of the Government definitely restore the trust of the buyers and eventually it will make real estate sector only for those developers who are legally compiled and the intent of those are only keeping the promise.
Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.