In the case of Aarcity Regency Park Apartment Buyer Welfare Association v. Aarcity Builders Pvt. Ltd. & Hisar Real Estate Pvt. Ltd., Appeal No. 496 of 2021, the Haryana Real Estate Appellate Tribunal issued a decision on 02.03.2023. The appeal was filed against an order passed by the Haryana Real Estate Regulatory Authority (the Authority) on 07.09.2021. Let's dive into the details of this case.
The appellant, Aarcity Regency Park Apartment Buyer Welfare Association, with its registered office in Hisar, challenged the order of the Authority. The respondents in the case were Aarcity Builders Pvt. Ltd., with its registered office in Hisar, and Hisar Real Estate Pvt. Ltd., with its registered office in New Delhi.
The Order of the Authority:
The Authority, after hearing all the parties, made several conclusions in its order. Firstly, it found the explanation provided by the respondents regarding suspected diversion of funds to be satisfactory, as more funds were invested than collected from the complainants. Therefore, no diversion of funds received by the respondents from the project's allottees was found.
Secondly, the Authority directed the respondents to submit sample agreements of each type of villa to assess the justification for differential pricing. These sample agreements were required to be submitted within ten days of the order's uploading, with a copy provided to the opposite side.
Thirdly, the Authority expressed its primary objective of getting the project completed through the respondents. It had previously considered handing over the project to the Association of Allottees due to suspicions of fund diversion. However, with the promoters showing progress and the completion of the project's first phase expected soon, the Authority was inclined to review its suspicion regarding fund diversion.
Fourthly, the Authority had ordered the appointment of a forensic auditor to conduct an audit of the promoter's investments in the last year. The report of the forensic audit was submitted, and the respondents were directed to deposit the auditor's fee with the Authority.
Lastly, the Authority accepted the request to monitor the project's progress on a bi-monthly basis. The respondents were required to report the amount received and invested in the project on every hearing date, with withdrawals only permitted for construction purposes. They were also to provide updates on the physical progress achieved.
The appellant's counsel raised concerns about the impact of the Authority's observations on an ongoing investigation registered under FIR No. 0133 dated 22.05.2019, at the Urban Estate Police Station, Hisar. However, the appellant's counsel failed to provide a clear explanation of how the observations would affect the investigation.
The Tribunal acknowledged the appellant's concerns but clarified that the observations made by the Authority were solely for the purpose of deciding the matter before it. The Tribunal emphasized that the investigating agency would proceed independently, following its own procedures and the law. The parties expressed their satisfaction with this clarification, leading to the disposal of the appeal.
In the case of Aarcity Regency Park Apartment Buyer Welfare Association v. Aarcity Builders Pvt. Ltd. & Hisar Real Estate Pvt. Ltd., the Haryana Real Estate Appellate Tribunal upheld the order of the Authority. The Tribunal addressed the appellant's concerns about the impact of the Authority's observations on the ongoing investigation, clarifying that the observations were limited to the proceedings before the Authority. The case highlights the importance of transparency and completion of real estate projects in accordance with regulatory guidelines.
Note: The information provided in this article about Haryana Real Estate Regulatory Authority (HRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Appeal No. 496 of 2021 before the Haryana Real Estate Regulatory Authority
We hope you found our blog insightful and engaging! We appreciate your time and interest. If you enjoyed reading it, don't forget to subscribe to our newsletter to receive regular updates on our latest content. Visit our website www.reunionhq.in to know more.