Registration of promoter, who violates ‘builder-buyers agreement’ (BBA) by indulging in several fraudulent practices, shall be revoked

The promoter had got the housing Project registered as Sampada Livia. Allottees had approached the Authority by filing complaints against the violations of the Builder Buyers Agreement (BBA) by the Promoter. During the course of enquiry into complaints made by the allottees, it was found that even the necessary conditions for registration of the Project as mentioned had not been met and required details were not uploaded on the R.E.R.A. Website. There were no regular progress reports uploaded either.

The inspection team found that the work had been stopped as no construction material was available on the site and only 10% of the structural work on the project was completed. There were two floors built-in Tower A, seven floors built-in Tower B, six floors built-in Tower C, and only the basement was built in Tower D. There were other Towers to be built which had not even been started. Inspection report submitted along with photographs, that there was no likelihood of the project being completed within time and the flats being handed over to the allottees. The security guard on the site revealed that work had stopped on the Project for the past two years. The Authority surmised that in all likelihood, the hard-earned money of the allottees had been diverted unauthorisedly by the Promoter.

The Promoter had provided very few details about the Project on its web page on U.P.R.E.R.A. Website and only the cost of the project was given. The geographical location, details like longitude and latitude were not provided. The development work and the structural construction carried out was also not given in the description. The column regarding details of the land was left blank. The details of encumbrances etc. were also not provided. The approved map was not uploaded. The affidavit of the Promoter under Section 4(2)(1) was also not uploaded. There was no certificate of the Chartered Accountant, no certificate of the Engineer and no certificate of the Architect. The ownership documents of the land were not uploaded by the Promoter. The annual audited balance sheets were also not uploaded.

In the BBA, the date of commencement of the Project was given as 01.12.2014. In four years i.e. up to February 2019, only 10% of the structural work was done and it was evident that there was no possibility of the Project being completed and handed over to the buyers in time. There was also the possibility of diversion of the allottees’ money. Hence, the Authority asked the Chief Executive Officer of Greater Noida to get an Audit conducted of the Project. The Auditors informed that about Rs.47 crores had been diverted by the Promoter.

The Promoter had thus committed a default on all counts as mentioned under Real Estate Regulatory Authority Act. There was a prima facie satisfaction that the Promoter was indulging in several fraudulent practices. Revocation of registration of promoter found to be proper by Court.

Appearing Counsel/s: Prashant Kumar, Shobhit Mohan Shukl