In first of its kind, RERA Handovers the Project to Residents

                                                      RERA Handovers the Project to Residents                             

Status as on- 31/10/2019

We are happy to share that the RERA team of Centrik Group (www.centrik.in) has argued and got 1st of kind order from Hon’ble RERA, which is unique and real justice in real estate history. In the said case, the uncompleted project was handed over to the association to construct it through the pooling of money. Media at different place published the said case

One of the links is:

https://economictimes.indiatimes.com/wealth/real-estate/in-a-first-haryana-rera-asked-residents-to-pool-in-money-to-finish project/articleshow/71823728.cms?from=mdr

The complete order is:

https://centrik.in/wp-content/uploads/2019/10/Piyush-Heigh-892019.pdf or

https://haryanarera.gov.in/assistancecontrol/searchcasedetailopen/4283

The brief of the matter is as under :

INTRODUCTION

As per the recent judgment acquired by our team through Hon’ble Panchkula RERA authority with respect to a project namely “PIYUSH HEIGHTS wherein over 100 allottees of clogged project were granted relief under section 8 of RERA, 2016 whereby the allottees of the towers in question were permitted to form a welfare association and take over the remaining construction by pooling the money

ISSUE

Owing to the huge delay on the part of the developers i.e. Piyush Buildwell India. Ltd. in developing the tower J and K of Project “Piyush Heights” situated at Sector-89 Faridabad, the allottees filed a case with RERA Authority through Centrik. Initially, there were around 10-15 no. of allottees which later been joined by other allottees of the project.

According to the initial commitments of the project developers, the allottees of the towers were to put in possession of their flats latest by the year 2012-2013 and even by the year 2018 homebuyers waited patiently for the developers to hand over the possession of the apartments but they were forced to take recourse of RERA when they found out that directors of Company are in Jail and construction was stalled for an unreasonable period of time.

During the progress of the case, it was argued that since the builder is neither capable nor want to compete for the project, then the passing of any order of refund or possession would not give real justice. We appealed to handover the project the association who can construct the remaining by pooling the money and hiring other contractors.

POINTS TO BE NOTED FROM THE ORDER:

  1. RERA authority refused adjournment to the respondents on the 6th hearing of the case and passed an order ex-parte in favor of the complainants, as despite repeated efforts respondents were unable to appear and answer the claims of the complainants.
  2. RERA authority had issued a public notice in order to invite objections to the proposed transfer of the project to the association.
  3. That our team rather than taking an infructuous order of refund argued before the Hon’ble Authority to take recourse to Section-8 in order to make the relief time-bound and effective.
  4. As the complainants through their lawyers were successful in submitting a detailed report with respect to the proposed transfer to the satisfaction of the authority, the relief sought was granted.
  5. The governing body of the association was ordered to conduct a monthly meeting to oversee the physical and financial progress of the project and to submit the same to the Hon’ble RERA Authority regularly.
  6. The association was however ordered to sell the allotted apartments with the permission of the RERA authority so that more fund collection can be done.
  7. Also the chief engineer and superintendent engineer of DHBVNL was ordered to assess the load requirements for the abovementioned towers and to release the same on full filling necessary requirements and as per policies of DHBVNL.
  8. That the order passed in the matter is now listed under the head of “Important Judgements/Orders” on the official website of Panchkula RERA for kind perusal of the general public.

 

CONCLUSION

As the buyers had already suffered enough at the hands of the developers, authority while granting relief to the homebuyers also made sure to make the takeover process hassle-free. The authority has the power to hand-over the stalled project or uncompleted project to the association of buyers to complete it.

That such an order is first of its kind in the Country and this shall set an example for all other stalled projects wherein the builders are in jail for years and there is no hope of construction in near future.

Disclaimer – the above article is based on the order and interpretation of related laws, for general awareness. The readers are expected to take expert opinion before reliance on the article. For any clarification, please read at support@centrik.in

 

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