Status as on- 02/12/2019
M/s Orris Infrastructure Pvt. Ltd. and M/S Three C Pvt. Ltd. faced the full brunt of the powers entrusted to the HRERA Gurugram under the Real Estate (Regulation and Development) Act, 2016. The HRERA in an exemplary move ordered for the attachment of 10 acres of prime land in Gurugram and 4 plots in Noida belonging to M/s Three C Pvt. Ltd. and warranted its sale to raise Rs. 334 Crore to complete the Greenopolis Project.
Brief History of Greenopolis Project
M/s Orris Infrastructure Pvt. Ltd. was licensed by the Department of Town and Planning Haryana to develop and construct 47 acres of land in sector 89 Gurugram. Through an Agreement not approved by the Department of Town and Planning Haryana, M/s Three C Pvt. Ltd. was to construct the entire project having ownership of 65% of the 1862 flats.
Despite the sale of 1800 flats by 2013 and the Home Buyers having paid 80% of the total price, the construction was left in limbo since 2014.
ORDER BY HRERA- GURUGRAM
In July 2018 the HRERA in a rare and first of its kind move had taken an active initiative to expedite the construction and completion of the realty project. In an unprecedented order it restrained the Project Developers from alienating or creating any third party rights through encumbrance, sale, transfer on remaining available 10 acres of prime land until further direction from the Authority.
In its order on January 29, 2019, HRERA directed the projects to be completed in 3 phases- 600 flats in the first phase by July 31, and the second and third phases by March 31, 2020, and December 31, 2020.
ATTACHMENT OF PROPERTIES BY HRERA FOR EXECUTION
- On failure to complete the First Phase by July 2019, the HRERA had issued a legal show-cause notice to the Developers asking why a penalty of Rs. 111 Crore should not be imposed for failure to follow through the previous order.
- In its most recent order in early November 2019, the HRERA once more in a distinctive and groundbreaking feat attached the properties of the Developer to secure funds to ensure the completion of the Greenopolis Project.
- In a similar vein, a recent order of the NCDRC directed M/s Orris Infrastructure Pvt. Ltd to handover possession of flat to a homebuyer by November 30, 2019, along with 6% per annul interest on the amount deposited by the buyer from the due date of possession till the actual date of possession.
Further in August 2019, given the recent amendments to the IBC Homebuyers had successfully initiated insolvency proceedings as financial creditors against M/s Three C Pvt. Ltd.
The orders and directions of the HRERA in the instant case prove to be in a class by itself; it is indeed unrivaled in any past decision or order under RERA and shows the true potential of the RERA Act to be a strong instrument to actively standardize business transactions in real estate and comprehensively protect home buyer’s interests in case of default.
The Greenopolis Project also highlights the different avenues and laws that have been successfully implemented that give homebuyers a choice of forums to protect their interests as individuals or as a collective, be it through the fast track process of RERA, the Consumer Courts or the ability to hold the company itself liable in case of incomplete projects under the IBC.
Disclaimer – The above article is based on the personal interpretation of related laws and circumstances of the writer which may change from person to person. The readers are expected to take expert advice before relying upon the said article. For any clarifications, you can read to the author at email@example.com.